Bangladesh Bank (BB) on Monday launched a Tk 50 billion (Tk 5,000 crore) revolving refinance fund for the Cottage, Micro, Small and Medium Enterprise (CMSME) sector to ease working capital shortages, boost production and support employment generation.

The central bank introduced the fund through an SMESPD circular issued by its SME and Special Programmes Department, utilizing surplus liquidity of scheduled banks. The scheme will remain effective for three years from the date of issuance.

According to the circular, the fund aims to strengthen production activities, revive economic momentum and create direct and indirect employment opportunities by providing working capital support to active CMSMEs facing financial constraints.

Under the scheme, Bangladesh Bank will provide refinance to participating banks at an interest or profit rate of 4 percent, while banks may charge a maximum interest or profit rate of 9 percent to end borrowers.

The revolving nature of the fund will ensure continued liquidity as repayments are recycled into new financing. Interest will be calculated quarterly in March, June, September and December.

Borrowers will be eligible for a grace period of three to six months before repayment of installments begins.

The circular directs Shariah-based banks and Islamic banking windows of conventional banks to provide financing under approved Shariah-compliant models while maintaining the maximum profit rate of 9 percent and complying with all conditions of the scheme.

Active CMSMEs experiencing production or service disruptions due to working capital shortages will be eligible for financing under the fund. Refinance facilities will also be available against renewed working capital loans.

However, borrowers classified as defaulters by the Credit Information Bureau (CIB) will not qualify for the facility.

Bangladesh Bank said clients already benefiting from other refinance schemes may also be considered for financing under the new fund, subject to banks’ assessment and credit limits.

All scheduled banks will be eligible to participate after signing a Participation Agreement with Bangladesh Bank’s SME and Special Programmes Department.

Banks maintaining an advance-to-deposit ratio (ADR) or investment-to-deposit ratio (IDR) above 70 percent will receive priority in accessing the fund, although they must remain within overall regulatory limits.

The central bank said participating banks would bear full responsibility for loan recovery and would be required to repay Bangladesh Bank regardless of whether funds are recovered from borrowers.

To mitigate credit risk, banks may obtain collateral from clients but will not be allowed to charge any fees beyond the approved Schedule of Charges.

Bangladesh Bank expects the fund to contribute to income growth, employment generation and the development of import-substituting products and services, while supporting small entrepreneurs and stimulating industrial activity.

Issued under Section 45 of the Bank Company Act, 1991, the circular takes immediate effect. Bangladesh Bank also reserved the authority to inspect loan utilization and seek relevant documents from participating banks to ensure compliance with the scheme’s provisions.

The central bank has found the Section 18(a) of the Bank Resolution Act, which provides for ownership return of the merged troubled banks not 'maintainable' and has recommended its deletion.

Bangladesh Bank Governor Md Mostaqur Rahman expressed such view Monday as Editors' Council in a meeting with him expressed deep concern over the impugned section of the act and stressed the need for its further scrutiny for the sake of the banking sector.

The apex body of editors of the country's leading print-media outlets raised the concern and also listed other financial-sector problems during the meeting with the BB Governor at the central bank's headquarters in Dhaka.

Explaining reasons for suggesting removal of the section, the BB governor said, " There is no scope for application of the provision. The government has already invested nearly Tk. 520 billion in five merged Islamic banks, namely, Sammilita Islamic Bank. These banks in total have Tk. 1.32 trillion depositors' money, Tk. 320 billion performing loans and Tk. 1.64 trillion non-performing loans. It might be possible to recover Tk.200--Tk.300 billion. Thus. There will be a gap of at least Tk 650 billion. None, it seems, would come to reclaim ownership. Already two months have elapsed since adoption of the law. None has showed interest until now."

Members of the council, led by its president and New Age Editor Nurul Kabir, discussed a range of issues affecting the country's banking sector with the leadership of the banking regulator.

The council members also shared their concerns over the challenges facing the banking sector, particularly the rising volume of non-performing loans, the need to establish good governance in banks, the security of depositors' funds, and the current situation on the foreign- exchange market.

Emerging from the meeting, Nurul Kabir said the governor informed them about various reform initiatives and plans undertaken by the central bank to address the sector's problems and assured them that necessary measures would be taken.

The meeting also discussed the recent instability surrounding Islami Bank Bangladesh PLC as well as issues related to inflation control, investment and employment conditions, and various aspects of the proposed new national budget.

The Editors' Council emphasised the need for effective measures to ensure transparency, accountability and stability in the banking sector.

In a press release, the central bank stated that the BB governor briefed the editors on its ongoing reform agenda aimed at strengthening the country's banking sector. Key issues discussed included the management of non-performing loans (NPLs), governance reforms, oversight on weak banks, foreign-exchange market stability, digital transformation, and measures to ensure overall financial-sector stability.

Governor Mostaqur Rahman updated them on the merger progress of financially weak banks, noting that some administrative and management-related changes have already been completed. "The process is expected to gain a momentum following upgradation of the banks' Core Banking Systems (CBS)."

Addressing the challenge of default loans, the governor informed that the amendment and changes in the existing money loan court to ensure faster settlement of the cases linked to defaulted loans got underway.

"Simultaneously", it says, "the governor told them that distressed-asset- management company act will also be formulated to deal with unrecoverable assets more effectively."

The editors have also been informed that the BB's stolen asset-recovery moves helped freeze laundered assets worth $25 million in the United Kingdom (UK), which will be brought back soon.

Emphasizing the importance of "depoliticizing" the banking sector, the governor said the central bank's reform programme "is focused on ensuring professionalism, accountability, and good governance in bank management and lending practices".

Participants were also informed about regulatory measures taken in several large banks, including Islami Bank Bangladesh PLC, involving board restructuring, management changes, and initiatives aimed at protecting depositors' interests.

The governor also disapproved of the owning of any bank by any political party, saying that people from all walks of life should have confidence in the operations of a bank.

On digital transformation, Mr. Rahman said the central bank was working to build an integrated digital financial ecosystem. Planned initiatives include expanding digital-payment services, introducing AI-based credit-assessment systems, broadening agent-banking services, and implementing the "One Citizen, One Identity, One Wallet" concept to enhance access to digital financial services.

The governor further notes that wider adoption of Bangla QR could accelerate cashless transactions, improve transaction security, and contribute to higher government revenue collection.

In cases where patients require foreign currency exceeding the approved limit for medical treatment abroad, the governor said the regulator is providing approval as quickly as possible upon application through the bank concerned.

"In addition, the interest rate on funds used for bill discounting under the UPAS (Usance Payment at Sight) facility has been reduced, which is expected to help lower the prices of goods," the BB statement says.

Other council members who attended the meeting are Editor of The Financial Express Shamsul Huq Zahid, Editor of Bonik Barta Dewan Hanif Mahmud, Editor of Manabzamin Matiur Rahman Chowdhury, Editor of Prothom Alo Matiur Rahman, Editor of Daily Inqilab AMM Bahauddin, Editor of The Daily Samakal Shahed Mohammad Ali and Editor of Agamir Somoy Mustafa Mamun.

Bangladesh's trade deficit widened significantly during the first 10 months of the current fiscal year as import growth outpaced exports despite the fact that robust financial inflows helped keep the overall balance of payments (BoP) in surplus.

The trade deficit rose to $22.2 billion during the July-April period of FY26.

Exports fell by 1.5 per cent year on year to $36.02 billion, while imports spiked by 6.2 per cent to $58.2 billion, during the period under review.

The rise in imports was largely driven by higher purchases of fuel and food grains.

The imports of petroleum products climbed 72 per cent to $7.64 billion, while wheat imports surged by 49 per cent to $1.96 billion.

The increased fuel imports reflected higher domestic demand as well as elevated global energy prices amid the ongoing geopolitical tensions in the Middle East over the US-Israel attack on Tehran, now on a ceasefire.

The current account deficit, another key component of the BoP, widened to more than $1.0 billion during the July-April period from $586 million in the July-March period of this fiscal year.

The capital account, however, posted modest growth, increasing by more than 9.0 per cent year-on-year to $325 million.

The financial account recorded a sharp improvement as it rose to $4.47 billion during the period from $1.13 billion in the corresponding period a year earlier.

Net foreign direct investment (FDI) inflows stood at $1.14 billion, down more than 20 per cent from a year earlier.

Portfolio investment, which reflects foreign investment in capital market instruments, remained negative, recording a net outflow of $132 million during the period under review.

Data also showed that medium- and long-term (MLT) loan disbursements declined by around 20 per cent, while MLT loan amortisation payments increased by more than 19 per cent.

Despite the wider current account deficit, the overall balance of payments remained in surplus at $3.74 billion, indicating that foreign currency inflows exceeded outflows during the period.

The surplus helped the Bangladesh Bank strengthen its foreign exchange reserve position amid huge import payments.

Dr Zahid Hussain, an independent economist, says the country's external sector remained in a favourable position despite the widening current account deficit mainly due to strong inflows through both financial account and remittances.

"The positive development is that the imports of capital machinery increased by 6.1 per cent during the period, suggesting continued expansion of manufacturing activities and investment in productive sectors," he said.

BD Thai Food & Beverage Limited, a listed company on the stocks exchanges, has inked a manufacturing agreement with Sajeeb Group and Evergreen Beverage to produce carbonated soft drinks by ensuring full utilisation of its production capacity.

According to a stock exchange disclosure issued yesterday, Sajeeb Group and Evergreen Beverage will jointly utilise 70% of BD Thai Food's carbonated soft drink production capacity, while BD Thai Food will use the remaining capacity to manufacture its own beverages.

Under the agreement, Sajeeb Group will manufacture its "Wings" brand soft drinks and Evergreen Beverage will produce "Suncrest" brand beverages using BD Thai Food's carbonated soft drink production line.

According to the disclosure, BD Thai Food will earn manufacturing fees, which will help cover utility costs, salaries and wages, factory overheads, and financing expenses.

The company said full utilisation of its carbonated soft drink production line would enable the factory to operate at 100% capacity, boosting profitability and safeguarding the interests of shareholders and other stakeholders.

BD Thai Food, which markets juices, carbonated beverages, hard and soft candies, lollipops, and chewing gum under the Nectar brand, reported a loss of Tk13.40 crore in FY25. Owing to the losses, the company did not declare any dividend for shareholders.

In the first nine months of the current fiscal year, the company incurred a loss of Tk5.94 crore, translating into a loss per share of Tk0.73 as of March 2026.

BD Thai resumes operations after robbery

In a separate disclosure yesterday, BD Thai Food said production has resumed smoothly after a major robbery at its factory on 10 February. The robbery resulted in the theft of valuable cables and other equipment, rendering the factory inoperable.

The company subsequently invested a substantial amount to restore its electrical substation, generator and power cable network, enabling normal operations to resume. Currently, factory's production is running smoothly.

Meanwhile, the Bangladesh Securities and Exchange Commission (BSEC) on Sunday approved BD Thai Food & Beverage's proposal to raise Tk15 crore through a fixed-price initial public offering.

The company had previously raised Tk15 crore through an IPO in 2021 at a face value of Tk10 per share to support business expansion.

Shares of BD Thai Food closed at Tk26.30 each yesterday on the Dhaka Stock Exchange (DSE).

The Bangladesh Securities and Exchange Commission (BSEC) has withdrawn the floor price - the minimum price limit - imposed earlier on shares of Beximco Limited and Islami Bank Bangladesh PLC, paving the way for a return to normal market-based trading.

The decision was made at a special commission meeting held today (8 June) and subsequently formalised through an official circular.

With effect from tomorrow, both stocks will trade freely without any minimum price restriction, ending a prolonged period of regulated pricing that had limited natural market movement.

BSEC spokesperson Abul Kalam confirmed that the removal of the floor price will come into effect from tomorrow.

He said the last floor price levels stood at Tk110.10 for Beximco Limited while Tk32.60 for Islami Bank Bangladesh PLC.

Both the two stocks had been trading at these fixed levels for an extended period, leading to a virtual stagnation in market activity.

Market participants believe the decision will help restore a more realistic price discovery mechanism in the capital market.

However, they also warned that short-term selling pressure and volatility may increase in these two counters once trading resumes without restrictions.

The move comes after the new commission had already indicated plans to gradually withdraw floor prices as part of broader capital market reforms.

Earlier yesterday (7 June), during a meeting with the Dhaka Stock Exchange (DSE) delegation, the commission signaled its policy direction regarding market liberalisation and structural improvements.

Discussions also covered investor confidence building, deregulation, automation, modernised surveillance systems, simplified IPO approvals, and strengthening the autonomy of stock exchanges.

The floor price mechanism was first introduced on 19 March 2020 during the Covid-19 pandemic, when global markets faced severe volatility.

It was designed to prevent panic selling and sharp declines by setting a minimum allowable price based on the average of the previous five trading days. While it initially helped stabilize the market, prolonged use later created unintended consequences.

In 2022, against the backdrop of mounting global economic uncertainty - fuelled by the Russia-Ukraine war, acute dollar shortages, rising inflationary pressure, and a prolonged domestic market downturn - the regulator reintroduced floor prices across most listed securities.

The move, however, came at a significant cost. A large portion of the market became effectively inactive, as stocks could not trade below their set minimum limits, severely restricting liquidity and hampering the natural process of price discovery.

The regulator had defended the mechanism, arguing it was necessary to prevent excessive price declines, shield retail investors from panic-driven selling, and preserve overall market stability during a period of acute crisis.

Market experts, however, have long pushed back against the measure, contending that it distorted natural price formation and eroded the efficiency of the capital market over time.

Although most listed stocks were gradually freed from the floor price system, Beximco and Islami Bank remained exceptions due to their specific financial and operational challenges.

Market analysts noted that both companies were facing significant stress, including debt concerns and profitability pressure, raising fears of sharp corrections if restrictions were removed abruptly.

Experts now expect that lifting the floor price will lead to increased volatility in the short term, particularly in these two stocks.

However, in the long run, the move is expected to strengthen market-based pricing, improve transparency, and enhance liquidity across the market.

Globally, most developed and emerging markets do not use long-term floor price systems. The United States relies on circuit breakers to temporarily halt trading during extreme volatility.

India and China use daily price bands to limit excessive fluctuations, while Pakistan and Sri Lanka also apply temporary control mechanisms.

However, prolonged price freezing as seen in Bangladesh is rare internationally.

Market analysts view this decision as more than just a technical adjustment for two stocks. It is widely seen as a significant step toward a more liberal, efficient, and internationally aligned capital market structure in Bangladesh, where price discovery can function freely and investor participation can return to normal levels.

The country's private sector credit growth stood at a historic low of 4.75% in April this year, reflecting weak business confidence, slowing investment, and mounting global economic challenges.

Private sector credit growth stood at 4.72% in March, indicating a slight increase. Central bank data shows that growth remained below 5% for two consecutive months.

Economists and bankers said that following the February national election, the overall political environment has improved comparatively. However, the global economic situation and fuel crisis have disrupted demand and supply chains. As a result, investment has remained subdued.Mohammad Ali, Managing Director of Pubali Bank, believes there are several reasons behind the record-low private sector credit growth. He said that while there are many barriers to doing business in the country, the global fuel crisis significantly affected economic activity in March and April. The situation created concern among businesspeople and disrupted the private sector as well.

"Businessmen consider fuel costs when starting a new business or expanding an existing one. The country's businesspeople were reluctant to expand their operations due to the fuel crisis stemming from the Middle East war," he said.

He further said the export situation is not encouraging either. Exporters are not receiving more orders from abroad, while production costs have increased. As a result, costs are rising but even minimum profit margins are not being ensured.Ezazul Islam, Director of BIBM, said there are many challenges to making new investments in the country, and the fuel crisis has become an additional obstacle. Currently, growth remains slow due to weak demand.Private sector credit growth had been declining steadily in recent months, falling from 6.58% in November 2025 to 6.20% in December, and then to 6.03% in both January and February 2026, before dropping sharply in March, according to central bank sources.Bangladesh Bank has been publishing private sector credit growth data since 2003. A review of the data shows that March recorded the second-lowest growth rate in the past 24 years.

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

He said several factories owned by large business groups, including Nassa Group, Beximco Group and Gazi Group, had closed, reducing demand for bank borrowing.

"When the factories were operational, they imported capital machinery. But even the firms that are still running have reduced production by 60-70%," he said.

The National Board of Revenue (NBR) has extended the deadline for businesses to enter previously submitted paper-based VAT returns into the electronic VAT (e-VAT) system until June 30, 2026, ahead of the planned introduction of mandatory online VAT return filing from July.

According to an NBR press release issued on Sunday, a new sub-module titled "Hard Copy Return Entry" has been incorporated into the e-VAT system to facilitate the digital entry and preservation of all monthly VAT returns that had earlier been submitted in hard copy form.

The revenue authority said it had issued a circular on January 5, 2026 outlining the procedures for using the sub-module and had initially set March 31, 2026 as the deadline for entering all paper returns into the online system.

However, data from the e-VAT platform indicate that a significant number of hard-copy returns have yet to be entered electronically.

As part of its preparations to make online VAT return submission compulsory from July 2026, the NBR has decided to grant businesses additional time until June 30 to complete the process.

The NBR warned that businesses failing to enter their paper returns into the e-VAT system within the revised deadline would face restrictions.

In such cases, their closing balances as of May 2026 would be frozen, meaning no adjustments could be made against those balances in the future.

The revenue authority also noted that all VAT returns must be available in the online system for refund applications to be processed. As a result, businesses that do not enter all their previous VAT returns into the e-VAT platform will not be eligible to submit refund claims.

The NBR urged taxpayers to cooperate fully with its ongoing efforts to digitise all revenue-related activities, saying the initiative is aimed at enhancing transparency and accountability in the country's tax administration system.

To expand the tax base, the government is set to make Taxpayer Identification Number (TIN) mandatory for opening bank accounts. Existing account holders will also need a TIN to keep their accounts active.

However, exemptions may apply only to students, recipients of government allowances, and individuals or entities officially exempted through gazette notifications, according to sources at the National Board of Revenue (NBR).

Finance Minister Amir Khosru Mahmud Chowdhury is expected to propose the measure in the upcoming budget.Currently, a large number of bank account holders do not have TINs. In such cases, higher source tax is applied on interest income, although obtaining a TIN has never been mandatory for banking access.Bankers warned that the requirements could reduce the number of bank accounts and slow transactions through formal channels. However, experts argue that linking banking activities with tax compliance would improve monitoring and reduce tax evasion.The NBR is also planning wider data integration with banks. Beyond banking data, it aims to link its systems with National ID (NID), utility services, sub-registry offices, and other government databases through an online platform.

In addition, the tax authority is considering several new measures to widen the tax net, including making TIN mandatory for registering motorcycles with engine capacity of 150cc or above, introducing a Withholders Registration Number (WIN) for entities deducting source tax, and imposing a 0.20% tax on retailers.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, told TBS that previous moves to make TIN mandatory for credit card holders had reduced uptake. A similar impact could be seen in banking transactions if account opening is tied to TIN requirements.

"There is already a degree of fear about the banking sector. The NBR should address these concerns before introducing further mandatory requirements," he said.

Bangladesh currently has around 17 crore bank accounts, although many individuals or institutions hold multiple accounts. The exact number of account holders remains unclear.

Tax expert and Managing Director of SMAC Advisory Limited Snehasish Barua said mandatory electronic TIN (e-TIN) requirements risk reversing financial inclusion in Bangladesh's cash-heavy economy.

He said such a barrier could push entrepreneurs away from formal banking, increase reliance on cash, ultimately affecting bank deposit growth and liquidity.

He added that instead of strict mandates, the state should first move towards a cashless ecosystem, allow digital disclosure of bank accounts in tax returns, and gradually integrate tax and banking systems within a defined timeframe.

"Full integration of national asset databases with tax returns would help curb evasion and expand the tax base," he added.

Bangladesh’s point-to-point inflation rose to 9.42 per cent in May 2026, driven mainly by an increase in food prices, according to the latest data released by the Bangladesh Bureau of Statistics (BBS).

The inflation rate was 9.04 per cent in April 2026 and 9.05 per cent in May last year.

Food inflation climbed to 9.06 per cent in May from 8.39 per cent in April. The rate was 8.59 per cent in May 2025.

Non-food inflation also increased slightly to 9.71 per cent in May from 9.57 per cent in the previous month. It was 9.42 per cent in the same month a year ago.

Meanwhile, the 12-month moving average inflation declined to 8.63 per cent during the July 2025-May 2026 period, compared to 10.13 per cent recorded in the corresponding period a year earlier.

The BBS data showed that inflation increased in both rural and urban areas in May.

In rural areas, the general inflation rate rose to 9.48 per cent in May from 9.05 per cent in April. Food inflation in rural areas stood at 8.95 per cent, while non-food inflation was 9.98 per cent.

In urban areas, the general inflation rate increased to 9.25 per cent in May from 9.02 per cent in April. Urban food inflation stood at 9.29 per cent and non-food inflation at 9.24 per cent.

The latest inflation data came at a time when consumers across the country continue to face pressure from elevated prices of essential commodities and household expenses.

Despite vast potential for expanding local or native chicken production, rural farmers are being deprived of fair prices due to weak market systems, disease outbreak, a shortage of quality chicks, and the dominance of middlemen.

Against this backdrop, stakeholders believe that establishing an integrated value chain from production to marketing, directly connecting farmers to markets, and ensuring fair pricing could transform the local chicken sector into one of the key drivers of Bangladesh's rural economy.

These views emerged at a national-level roundtable discussion titled "Building a resilient Native Chicken Economy in Bangladesh," held yesterday (7 June) at the TBS conference room in the capital.

The event, which was jointly organised by Heifer International Bangladesh and The Business Standard, attended by government officials, researchers, poultry sector entrepreneurs, development organisations, and farmer representatives.

Presenting the keynote paper, Dr Md Mufazzal Hossain noted that nearly half of the country's total poultry population consists of indigenous or native chickens, and around 70% of rural households raise them in some form. Even a modest improvement in the sector's productivity, he said, could make a significant contribution to national animal protein production.

He pointed out that native chickens have stronger disease resistance and can be raised at relatively low cost. However, major challenges remain-including Newcastle disease, a shortage of quality chicks, inbreeding, and weak market linkages. While rural farmers sell local or indigenous chickens at around Tk450 a kg, the price in urban markets reaches up to Tk600-700 per kg.

He also called for cooperative-based marketing systems, linkages with supermarkets, easy access to credit, and a dedicated government project for the development of native chicken.

Sharing her experience, Roshni Akter, a farmer representative from Baraigram, Natore, said her income from raising native chickens has grown significantly through training and technical support.

She stressed that without adequate nutrition, egg production drops and profitable farm management becomes difficult, and called for affordable quality feed and market support for the small farmers.

President of the Bangladesh Poultry Industries Central Council (BPICC) Md Moshiur Rahman emphasised that ensuring biosecurity and rapidly delivering domestically produced vaccines to the field level are essential for the sustainable development of the poultry sector, noting that demand for eggs and poultry meat is rising rapidly, and consumer interest in native chicken has also grown noticeably – supermarkets that once stocked it occasionally now maintain near-regular supplies. He also called for waste management to be included as a condition of farm registration.

Shoshi Ahmed, a faculty member at Rajshahi University, said there is significant potential to substantially increase native chicken production at the rural level. While most households currently raise an average of 10 chickens, proper management and modest investment could raise that number up to 70–100. She stressed the importance of regular vaccination for disease control and ensuring improved housing conditions. She also emphasised the need to develop cooperative-based value chains to ensure the commercialisation of the native chickens and fair pricing for the farmers.

In her welcome address, Country Director of Heifer International Bangladesh Nurun Nahar said that strong partnerships among the government, private sector, research institutions, and development organisations are essential for the sustainable development of the indigenous chicken sector.

She said the time has come to move beyond isolated projects and adopt long-term, nationally coordinated programmes, with equal importance given to increasing production, improving market systems, ensuring fair pricing, and food security – alongside biosecurity and hygiene standards at the market level. Through coordinated efforts and effective policies, she added, it is possible to build a sustainable and safe production system for the indigenous chicken sector.

Speaking as chief guest, Md. Shahzaman Khan, Director General of the Department of Livestock Services, reaffirmed the government's commitment to developing indigenous breeds and local livestock.

He noted that through research, improved indigenous chicken breeds capable of laying 140-170 eggs per year have been developed. Since 80–90% of farmers in Bangladesh are still at the marginal level, building their capacity and increasing their income remains critical.

He stated that ensuring four key elements – improved breeds, proper housing, balanced feed, and regular vaccination — would make indigenous chicken farming more profitable, and that the Department of Livestock Services aims to work with all stakeholders toward this goal.

Participants collectively emphasised the need for coordinated policy support, stronger extension services, and accessible quality chicks and vaccines, as well as the development of cooperative-based marketing systems — all of which, they agreed, would enable the indigenous chicken sector to play a vital role in rural employment, nutrition security, and economic development.

Bangladesh's stock market continued to surge today (7 June) as investors welcomed BSEC's new leadership, with turnover jumping 13% to 22-month high in the first trading session following the new appointment on hopes of long-awaited capital market reforms.

Masud Khan was appointed as chairman while three others were as commissioners at the BSEC on Thursday last following the resignation of the previous chairman and its four commissioners.

According to Dhaka Stock Exchange (DSE) data, the benchmark index DSEX closed 41 points higher, after opening with a stronger gain of 74 points.

While the turnover at the bourse surged to Tk1,529 crore marking the highest turnover since 11 August 2024. On 11 August at DSE, turnover was Tk2,010 crore, on that day DSEX surged 91 points, the data showed.

Meanwhile, majority stocks traded on the bourse saw price increase. Of the traded 393 stocks, 184 advanced, while 160 stocks declined and 49 stocks remained unchanged.

Despite increasing majority stocks, the market capitalization fell by Tk801 crore to Tk6.92 lakh crore due to price correction on some stocks.

The two other indices— DSES, the shariah index and DS30, the blue-chip index surged by 6.57 points and 19 points respectively to close at 1,115 and 2,087 points, the DSE data showed.

At the opening of the trading session, stocks surge amid buying pressure significantly pulling DSEC over 74 points in the first 12 minutes.

Later, as selling pressure became active on profit taking in some specific stocks, indices turned into red shading DSEX until 10.39am.

After that buying pressure became active on the trading floor that again pulled indices. Finally, the market ended on the green at the first trading session.

Akramul Alam, head of research at brokerage firm Royal Capital Ltd, said that a positive sentiment among investors has started to build following the assumption of office by the new commission. In particular, various positive signals from the commission regarding market reforms, increased transparency, and safeguarding investors' interests have helped restore an atmosphere of confidence in the market.

He said, "There had been a long-standing crisis of uncertainty and lack of confidence in the market. After the new commission took charge, investors are now hoping for effective initiatives to address various structural problems in the market. The positive assurances given by the commission have created new expectations among investors, the impact of which is also being reflected in trading activity and share prices."

Akramul Alam said that at the close of trading on Tuesday, share prices of several fundamentally strong companies had increased positively. This indicates that investors are gradually shifting away from rumor-driven or weak stocks towards quality companies.

He further said, "Following the continuous rise in the market over the past few sessions, some investors have attempted to book short-term profits, which is a normal market behavior. As a result, selling pressure was seen in some stocks, but this should not be viewed as a sign of market weakness. Rather, it is part of a healthy correction process."

According to him, after this profit-taking trend ends, there is a possibility of renewed buying pressure in the market. If investor confidence strengthens further and positive measures from the regulator continue, the upward trend in the market may broaden further.

He added, "In the current situation, both liquidity and investor participation in the market are increasing. If the positive policy signals and the momentum of confidence are sustained, the market may move into a stronger position in the days ahead."

Chairman-linked stocks led top gainer

Shares of companies linked to newly appointed BSEC Chairman Masud Khan surged on his first trading day in office, reflecting strong investor interest. Khan previously served as Group CEO of Crown Cement Group, whose sponsors also hold directorship positions in Premier Cement.

Crown Cement and Unilever Consumer Care, where Khan held key positions prior to joining at the BSEC, recorded gains during the session.

According to data, Crown Cement's share price increased 10% to Tk57.2, hitting the upper circuit breaker and triggering a trading halt. Premier Cement also rose 9.78% to Tk51.6 each.

Meanwhile, shares of Unilever Consumer Care increased 1.78% to Tk2,103 each, Khan earlier served as chairman and an independent director of Unilever Consumer Care.

Other gainers was Sonargaon Textile as its shares price surged 9.95% to Tk71.8 each, followed by Paramount Textile by 9.90% to Tk57.7 each, IPDC Finance by 9.84% to Tk21.2 each, Mercantile Insurance by 9.83% to Tk33.5 each.

Loss-making firms led loser list

Some loss-making companies, whose shares price abnormally surged in recent trading sessions, saw price declines amid selling-pressure today.

Meghna PET Industries, a non-performing firm since 2002, shares price fell 9.90% to Tk81.9 each. Its shares price surged significantly since March as its shares price was Tk23.6 each on 8 March. Since then, its share price gradually surged.

Another loss-making and closed company Meghna Condensed Milk's shares fell 9.82% to Tk42.2 each followed by Safko Spinning Mills by 9.21% to Tk20.7 each, SK Trims by 8.21% to Tk13.4 each, and Apex Spinning Mill by 7.94% to Tk290.8 each.

A special parliamentary committee has recommended expanding Bangladesh's strategic fuel reserves to ensure a minimum three-month storage capacity and diversifying import sources to strengthen the country's energy security.

The committee also made 12 recommendations to address the recent energy situation and prevent similar crises in the future.

It emphasised introducing comprehensive digital monitoring of the supply system, expanding the use of renewable energy, and accelerating the implementation of key infrastructure projects.

Power and Energy Minister Iqbal Hasan Mahmud presented the committee's report in parliament today (7 June).

The report also incorporated 10 recommendations submitted by opposition members.

The committee stressed the need to increase the use of LNG and renewable energy as alternative energy sources. It also recommended the swift implementation of the Dhaka-Chattogram pipeline, the Single Point Mooring (SPM) project and the second unit of Eastern Refinery (ERL-2).

In addition, the committee highlighted the importance of making rooftop solar installations mandatory and ensuring regular monitoring of their effectiveness. It also advised adopting necessary plans and effective measures to reduce system losses in electricity distribution.

According to the report, pressure on the country's fuel supply system has been created by rising international fuel prices, the war situation in the Middle East, disruptions to shipping through the Strait of Hormuz, instability in global supply chains, and domestic factors such as panic buying, illegal stockpiling and black-market activities. As a result, concerns and uncertainty have emerged among the transport, agriculture and industrial sectors, as well as the general public.

The committee recommended adopting an integrated plan for power generation from a variety of sources, including oil, gas, coal, solar and wind energy.

The report stated that a study should be conducted to determine whether opportunities can be created for private companies, alongside Bangladesh Petroleum Corporation (BPC), to import fuel products.

It also recommended strengthening public awareness campaigns to reduce irrational stockpiling and panic buying during periods of crisis.

According to the report, in the context of volatility in global energy markets and prevailing geopolitical realities, there is a pressing need to make the country's long-term energy policy, infrastructure and supply system more stable, diversified and technology-driven.

The special committee believes that the recent situation has created an important opportunity to reassess Bangladesh's energy security framework.

Opposition's 10 recommendations

The opposition proposed conducting demand assessments for power and energy through an independent committee of experts free from political influence.
According to them, realistic planning is needed to avoid exaggerated demand forecasts.

They also recommended maximising the utilisation of coal-fired power plants, increasing domestic gas production, undertaking new gas exploration both onshore and offshore, continuing crude oil exploration, and accelerating the implementation of the SPM and Eastern Refinery-2 projects.

The opposition's recommendations also included large-scale expansion of solar power, assessing the feasibility of micro-hydro projects in the hill regions, exploring the potential for river-flow-based power generation, and reducing the use of government vehicles during energy crises.

They further proposed research into the potential of hydrogen fuel technology, biogas and waste-to-energy generation. According to the opposition, it is essential to diversify the power and energy sector and reduce excessive dependence on any single energy source.

On 26 April, the 10-member special committee comprising parliament members from both the government and opposition was formed to review the country's energy security and determine future actions in the national interest.

OPEC+ is set to agree on Sunday a fourth increase in oil output targets in as many months, three OPEC+ sources said, even though the US war with Iran is still preventing several of the group's members from pumping more.

The war has cut oil flows via the Strait of Hormuz, creating the world's biggest ever supply crisis as key OPEC+ members including Saudi Arabia have been unable to supply customers in full since the end of February. The crisis for OPEC+ deepened when the United Arab Emirates left the Organization of the Petroleum Exporting Countries after almost 60 years.

Seven core members of OPEC+, which groups OPEC and allied producers including Russia, have increased their output quotas from April to June by almost 600,000 barrels per day.

In reality, the group's production has collapsed due to export cuts by Gulf members, averaging 33.19 million bpd in April versus 42.77 million in February, according to OPEC figures.

On Sunday, the seven members will likely increase targets by about 188,000 bpd from July, the sources said. This is the same as the June hike, which was adjusted down from monthly increases of 206,000 bpd in May and April to take into account the UAE exit.

All the sources spoke on condition of anonymity and said a final decision had not been made.

The seven of 21 OPEC+ members due to meet on Sunday are Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman.

A full OPEC+ ministerial meeting is also scheduled for Sunday but is not expected to make any policy changes, the sources said.

The National Board of Revenue (NBR) is considering reducing the source tax on a range of non-core supply items – including packaging materials, office stationery, and administrative and marketing-related goods used in local industry and service sectors – from 5% to 4%. The advance income tax (AIT) levied at the import stage may also be trimmed by one percentage point.

A senior NBR official, speaking on condition of anonymity, said the proposal has been shaped by business demands and is expected to feature in the upcoming budget. "This may reduce costs for businesses and, ultimately, help protect consumers from rising prices of goods and services."

The move follows remarks by NBR Chairman Abdur Rahman Khan in March, when he signalled that source tax rates across sectors would be rationalised and aligned with firm and industry profitability to minimise refund complications.

Under the current framework, excess source tax deducted at the supply stage can be offset against future profits. In practice, however, many firms either fail to claim such adjustments or avoid doing so because of procedural complexity. The result: companies frequently pass on the burden through higher prices, while others underreport income to ease compliance pressure.

Business leaders and tax experts have broadly welcomed the proposal.

Debabrata Roy Chowdhury, Director of Nestlé Bangladesh, called it a positive development. "We deduct tax from our suppliers and deposit it. But at the current rate, suppliers need to earn more than 20% profit to absorb it, which is not realistic. They cannot adjust it, so they pass it on through higher prices," he told TBS.

Another entrepreneur noted that while compliant firms properly deduct and remit taxes, a significant portion of the market underreports income to sidestep the burden – a trend the higher rate has helped entrench. Chowdhury added that at the 5% rate, a substantial sum is withheld annually at the supply stage, squeezing cash flows across the chain.

Tax experts are calling for further refinement, suggesting that source tax rates be calibrated against corporate profitability based on financial statement analysis. They note that the rollout of the Document Verification System (DVS) has improved transparency, making such fine-tuning more feasible.

Snehasish Barua, managing director of SMAC Advisory Limited, backed the proposal, describing the cut as beneficial for both businesses and consumers. "Lowering the upfront tax on imports and supplies from 5% to 4% directly solves a major corporate headache: trapped cash flow," he said, adding that easing upfront tax pressure would improve liquidity, reduce transactional friction, and strengthen compliance.

On the question of fiscal impact, Barua acknowledged a likely short-term dip in revenue but argued that improved efficiency and stronger compliance would offset it over time. "With inflation squeezing everyday budgets, this policy acts as a shield against rising prices," he said.

Source tax collections currently account for more than 60% of the government's income tax revenue, though a detailed breakdown between local supply deductions and import-stage AIT is not publicly available.

According to NBR's 2022-23 financial statement, Tk15,728 crore was collected at the local supply stage and Tk11,866 crore at the import stage – a combined figure that experts say is substantially tied to the prevailing 5% rate.

Formal credit growth in the private sector remains almost static, reaching 4.75 per cent in April, signalling a deep slowdown in the country's business activities.

The low trend in credit demand from private enterprises is attributed to banks becoming more cautious amid rising non-performing loans (NPLs) and private borrowers losing their credit appetite due to multiple anti-business factors, including the energy crisis, higher lending costs, and external shocks stemming from the Middle East crisis.

The Bangladesh Bank's (BB) private sector credit growth data, available since 2003, shows April growth was the second-lowest after the previous month's count of 4.72 per cent.

According to the BB, outstanding loans taken by private sector entrepreneurs reached Tk 18.03 trillion by the end of April, up 4.75 per cent from Tk 17.22 trillion a year earlier.

In fact, private credit growth has hovered around single digits since August 2024, reflecting prolonged sluggishness in the $460 billion economy that is largely private-sector-led.

Seeking anonymity, a central bank official says the banking regulator continues its contractionary monetary policy stance, keeping the policy rate at 10 per cent as part of its inflation control measures despite criticisms from business circles.

"The higher lending rate, energy crisis, and external shocks stemming from the Middle East crisis are major reasons behind the plummeting credit demand," he says.

He mentions the half-yearly monetary policy statement (MPS) projection for private credit growth up to June next year is 8.50 per cent, but the current growth remains below that.

However, growth could pick up in the last quarter of FY26, he adds.

President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem says entrepreneurs are struggling to survive in the market under the extreme business and investment climate that prevails.

He cites multiple factors like the prolonged energy crisis, higher borrowing costs, and anti-business taxation policy, saying these are making it difficult for businesspeople to survive.

"Under such circumstances, who dares to think of business expansion? I do not know how the growth (4.75 per cent) has happened and who the borrowers are. Will they be able to repay the loans? I have enough doubts," he adds.

India has hiked domestic cooking gas price by Rs 29 per cylinder, in the second increase in three months as state-owned fuel retailers continue to grapple with elevated global energy costs due to West Asia conflict.

The price of a 14.2-kg domestic cooking gas cylinder in Delhi will rise to Rs 942 from Rs 913 with effect from 7 June, Indian media reported today citing industry sources.

The latest increase follows a Rs 60-per-cylinder hike on 7 March after the conflict in West Asia disrupted global energy supplies and drove up international fuel prices.

Industry sources said the increase had only partly offset losses incurred on domestic LPG sales.

Petrol and diesel prices have been raised by a cumulative Rs 7.50 per litre since mid-May while compressed natural gas (CNG) rates were increased by around Rs 6 per kg.

Meanwhile, the Petroleum And Natural Gas Ministry said in a statement today recipients of subsidized cooking gas under a special scheme for women will receive Rs 300 a cylinder on the first four refills each year.

The effective cooking gas price under the subsidized scheme for women for the first four cylinders at Rs 642 is at a discount of about 60% to the actual international price of an LPG cylinder, it said.

The statement said cooking gas cylinders in India are cheaper than in any neighbouring country and far below the price in advanced economies such as the United States, Australia and Canada.

The cost of supplying a cylinder has risen to over Rs 1,600, an under-recovery of about Rs 700 on each domestic cylinder.

The prices of petroleum products in India are linked to the corresponding prices in the international market.

What the household does not bear the brunt of is the several hundred rupees a cylinder which the government is bearing.

As the West Asia conflict tightened the Strait of Hormuz, through which roughly a fifth of the world's oil and a large share of India's energy imports pass, most commercial traffic in the waterway was brought to a near halt.

About 54 per cent of India's LPG consumption was routed through the Strait, leaving the cooking-gas supply directly exposed to the disruption.

However, India was among the few that kept its energy cargoes moving. In fact, India brought out the largest number of energy-carrying without paying any toll.

Besides, sourcing was widened to suppliers across the world, including those that do not route through the Hormuz Strait, like the United States, Canada and Algeria and available LPG was directed to households and to priority users such as hospitals and educational institutions.

The ministry said measures were taken to secure supply through the disruption. On the supply side, domestic LPG production was raised by more than 60 per cent to offset the constrained imports.

With an upscale new budget coming in few days now, the government targets borrowing 8.0-percent higher from the banking sector and 20-percent bigger from savings schemes to finance deficit amid unpromising revenue-earning prospects, officials say.

According to Finance Division sources, in the next fiscal year, the government plans to borrow some Tk 1.12 trillion from banks compared to current year's budgetary target of Tk 1.04 trillion.

Data show that until May 10, the government had actually borrowed Tk 1.95 trillion from the banking sector to meet its needs.

Also, the government is targeting to borrow some Tk 150 billion from the national savings schemes to help finance the Tk 9.38-trillion largest-ever fiscal budget in Bangladesh.

In the outgoing fiscal year, the government had targeted borrowing Tk 125 billion from national savings schemes. However, due to selling pressure from the buyers, the government's net selling of savings instruments fell into negative territory by Tk 5.55 billion until February last.

Officials say that as the government is making a large-size budget without confirming adequate sources of earnings, it will have no option but to raise dependence on the banking sector to meet its financial needs.

In the next year's budget, the government is setting a target of collecting Tk 6.95 trillion as revenues, compared to its highest revenue collection in the recent past amounting to Tk 4.09 trillion.

The finance officials say the National Board of Revenue (NBR) alone is going to be given a target to collect Tk 6.04 trillion, higher by Tk 2.43 trillion than its previous records in revenue mobilisation.

So, they say, as revenue collection will fall short of its target and foreign fund flow is not promising in the coming year, government's net bank borrowings will mount in the next fiscal year, surpassing the target.

Dr Zahid Hussain, a former lead economist at the World Bank's Dhaka office, says it seems that "debt trap is now a matter of time" as the government is increasingly depending on loans instead of enhancing revenue earnings.

"The money the government is borrowing from the banks is being used for meeting its operational needs instead of using them in productive sectors," the economist notes.

Thus, he adds, the government's debt burden is increasing day by day.

Because, he says, the government will have to return the money with interest.

Mr Hussain also makes a point that high government borrowing from banking sector lessens fund flow for private-sector investment, thus lowering employment growth that ultimately impacts overall economic growth in the country.

Oil ​prices fell on Friday as traders gained confidence that renewed conflict between the US and Iran ‌was growing less likely.

Brent crude futures settled at $93.09 a barrel, down $1.94 or 2.04 percent. The previous session, Brent settled 2.84 percent lower.

US West Texas Intermediate crude finished at $90.54 a barrel, down $2.50, or 2.69 percent, following a 3.1 percent loss on Thursday.

“The market is not seeing ​escalation between the parties,” said Phil Flynn, senior analyst at Price Futures Group. “Even though we don’t ​have a deal, it seems the market is seeing a de-escalation.”

Petroleum Development Oman said operations at Mina al Fahal port were unaffected after three sources told Reuters that oil loading had been ​suspended following an explosion near its mooring berths. Oman exports 800,000 to 900,000 barrels per day of crude from the ​terminal.

Both contracts still looked set to post their first weekly gains in three weeks, with Brent up 1.18 percent and WTI around 3.64 percent.

The contracts rose earlier in the week after fighting flared in the Middle East as US-Iran war peace talks dragged ​on while traffic in the Strait of Hormuz, where a fifth of the world’s oil passes, remained limited.

“As ​hopes for an agreement between the US and Iran were dashed once again, the price of Brent crude and European ‌natural gas rose slightly this week,” Commerzbank analysts said on Friday.

However, Brent’s gains have been capped by oil inventories lasting longer than expected, rerouted exports and falling demand, Commerzbank added.

Hezbollah leader Naim Qassem rejected on Thursday a US-brokered agreement between Israel and the Lebanese government to halt the fighting. Iran has made a ceasefire in Lebanon a ​condition for any peace deal ​with Washington.US President Donald ⁠Trump said on Thursday he believed progress was being made between Israel and Lebanon and that Lebanon deserved to have peace.

“Any optimism remains heavily clouded by a ​tangled web of headlines and counter-headlines,” IG market analyst Tony Sycamore said in ​a note.

Opec is ⁠sticking to its oil demand growth forecast of 1.2 million bpd for this year, Secretary General Haitham Al Ghais said on Thursday, despite the Middle East conflict and closure of the Strait of Hormuz.

Iranian oil exports have fallen to their ⁠lowest level ​in six years mainly due to the US naval blockade, according ​to shipping data, although weak demand in China has depressed prices for the oil.

Bitcoin dropped below $60,000 on Friday, its lowest level since October 2024, just before Donald Trump’s election, which propelled it to a record high.

The currency fell by about 6 percent around 1615 GMT, to $59.7709, before paring its losses slightly.

The election of Trump, a staunch advocate of cryptocurrencies, to the White House for a second term in November 2024 sparked a wave of enthusiasm in the sector, sending the price of bitcoin soaring to nearly $110,000.

The current dip has been caused by factors including one corporate selloff, according to Emma Bernuau, a consultant at Eurosagency.

A surprise sale by Strategy -- one of bitcoin’s most prominent corporate holders -- rattled confidence. The firm revealed it had sold 32 BTC from its reserves, the first such disposal in several years.

“Although the amount was minimal, the symbolic significance is considerable,” Bernuau said.

“The market had generally considered that Strategy had no intention of selling its bitcoin and would continue accumulating regardless of market conditions.”

Bernuau said long-term investors could view the dip as a buying opportunity, and flagged several potential tailwinds including progress on US legislation to support the sector.

The benchmark index of the Dhaka Stock Exchange (DSE) rose sharply in early trading today (7 June), following the appointment of the new chairman of the Bangladesh Securities and Exchange Commission (BSEC), who assumed office on Thursday.

During the opening session up to 10:10am, the DSEX gained 73 points to reach 5,548, its highest level in the past three months.

The blue-chip DS30 index also posted strong gains, rising 29 points to 2,097.

Of the traded securities, 298 advanced, while 34 declined and 34 remained unchanged.

Turnover during the session stood at Tk213 crore.

Market insiders attributed the rally to renewed investor confidence following the appointment of the new BSEC chairman.

They expressed optimism that the newly appointed chairman, Masud Khan, would play an important role in restoring stability and confidence in the capital market.