OpenAI is planning its biggest ChatGPT overhaul yet, aiming to turn it into a "superapp" with coding tools and AI agents to boost revenue ahead of a potential stock market listing, the Financial Times reported on Sunday.

The changes are part of a broader reorganisation at OpenAI, as it shifts resources to target lucrative enterprise clients and intensify competition with rival Anthropic, the report said, citing more than a dozen current and former employees.

Reuters could not immediately verify the report. OpenAI did not immediately respond to Reuters' request for comment.

The overhaul will give greater prominence and resources to OpenAI's coding product Codex and is set to roll out in the coming weeks, initially appearing as updates to ChatGPT's website and mobile apps, the FT said.

To drive uptake, OpenAI is redesigning ChatGPT's interface with new prompts and features steering users towards coding tools, image generation and partner services such as Canva and Booking.com, the report added.

Most Codex users are paying customers, while 2 million businesses account for about 40% of OpenAI's revenue, FT said, adding that the company expects that share to rise to 50% by year-end.

ChatGPT serves more than 900 million weekly active users, OpenAI said earlier this year, adding that it had surpassed 50 million consumer subscribers.

Reuters reported in May that OpenAI was preparing a confidential US IPO filing in the coming weeks. However, CEO Sam Altman has said the company is not focused on timing and will go public when it makes sense.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan said the regulator would take an aggressive approach to attract quality companies to the stock market, arguing that such a move is necessary to build a more stable and mature capital market.

Speaking at the 10th anniversary event of CFA Society Bangladesh at Sheraton Dhaka on Saturday, Khan said the market currently suffers from a shortage of quality stocks, while a significant share of trading remains concentrated in weak and speculative shares.

“We have to bring very good scripts into the market, very quickly,” he said, stressing that investors need access to more fundamentally sound companies.

The BSEC is exploring various incentives to encourage strong companies to go public. While tax incentives remain an option that would require discussions with the National Board of Revenue (NBR), he suggested several administrative measures that could make listing more attractive.

Among the proposals, Khan floated the idea of creating a separate tax administration framework for listed companies, arguing that compliant listed firms should face fewer regulatory burdens than unlisted entities.

Khan also highlighted the long-term benefits of listing, saying publicly traded companies tend to become stronger institutions through improved governance, professional management and succession planning.

He further revealed plans to promote direct listings, particularly for multinational corporations, well-governed banks, state-owned enterprises and reputable local companies.

According to him, direct listings could quickly increase the supply of quality shares in the market without requiring companies to raise fresh capital.

Noting that Bangladesh remains heavily reliant on retail investors, Khan emphasised the need to strengthen institutional participation in the stock market. He said deeper involvement by pension, provident and gratuity funds would help the market progress from frontier-market status towards emerging-market standards.

The chairman argued that stronger institutional investment, alongside the listing of quality companies, is essential for creating a more stable and mature capital market.

He also called for major regulatory simplification and digitisation, saying the existing regulations governing IPOs, margin loans and mutual funds have become unnecessarily complex. Applications for IPOs and rights issues should be fully automated, he said, adding that regulators should “regulate where necessary and simplify where possible.”

Asif Khan, president of the society, and M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh, also spoke at the event.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) will hold an emergency board meeting today to review the persistent decline in garment exports.

The meeting, to be held at the BGMEA office in Uttara, Dhaka, will primarily focus on the export downturn, BGMEA Director Faisal Samad said. It will also discuss the recent closure of several garment factories and the factors behind them.

The association will also engage with the government to address the challenges facing the garment sector and stem the decline in exports, he said.

Garment exports have been falling for nearly a year, Samad said, driven not only by tariff-related issues but also by geopolitical tensions, longer lead times and challenges associated with the country’s graduation from least-developed country (LDC) status.

In the July-May period of fiscal year 2025-26, garment exports totalled $35.31 billion, marking a 3.41 percent decline from $36.56 billion in the corresponding period of fiscal year 2024-25, according to data from the Export Promotion Bureau.

The meeting is also likely to discuss the US tariff issue, BGMEA President Mahmud Hasan Khan said, as it has created uncertainty among businesses.

A fund will also be created for members so that it can be used in emergencies, he said.

A major European clothing retailer operating in Bangladesh said, requesting anonymity, that the outlook for garment exports may not improve significantly in the next season due to continued volatility in the global market.

The longer lead time is a major problem in Bangladesh, he said. Shipments from Bangladesh take 30 to 40 days to reach Europe, and in some cases even longer. Longer lead times also increase operational costs, making it difficult for manufacturers to remain profitable on thin margins.

Bangladesh should sign a free trade agreement with the European Union or negotiate to secure GSP+ status, as preferential market access to the EU will end following the country’s LDC graduation, he suggested.

The global airline industry nearly halved its ​2026 profit forecast on Sunday, citing conflict in the Middle East that has driven up fuel costs, disrupted key air ‌corridors and exposed the fragility of a sector operating on thin margins.

The International Air Transport Association, which represents more than 370 airlines accounting for about 85 percent of global air traffic, said in its annual report that it now expects the industry to post a combined net profit of $23 billion in 2026, well below a previous projection of ​about $41 billion and down from $45 billion in 2025.

The downgrade underscores airlines’ exposure to geopolitical shocks and fuel volatility, even as passenger ​demand remains resilient, planes are flying fuller and revenues are set to rise to more than $1.1 trillion.

“There are two major factors: one is the significant increase in jet fuel prices, which has gone way higher than I think anybody would have expected, and ​then the disruption to the airlines in the Gulf region, so that combination has led us to reduce the forecast,” IATA Director General Willie Walsh ​told Reuters at the group’s annual meeting in Rio de Janeiro.

Walsh said he expects some smaller airlines to go bankrupt or be taken over by bigger carriers this year and next as higher fuel costs bite. US low-cost carrier Spirit Airlines shut down last month, the first airline casualty of the Iran war.

Airlines are also expected to cut ​unprofitable routes to protect margins, while fares - which have surged since the start of the Iran war - are unlikely to fall soon, Walsh said.

“In ​an environment where demand remains pretty robust, but capacity comes down, that will likely lead to a situation where fares will remain elevated,” Walsh said.

The Middle East conflict, triggered by US and Israeli airstrikes on Iran, has forced airlines to reroute flights around closed or restricted airspace, adding hours to some journeys, increasing fuel burn and straining already tight capacity.

At the same time, oil prices have surged on fears of supply disruption, pushing jet fuel prices sharply higher and widening refinery margins, leaving airlines facing a steep jump in their largest cost.

Gulf airlines such as Emirates, Qatar Airways ​and Etihad Airways face the greatest ​operational uncertainty after a near-complete shutdown of regional airspace at the start of the conflict.

Walsh said most regions should remain profitable, though at lower levels, while Middle East airlines are likely to slip into the red due to the conflict and weaker ​demand.

IATA expects airlines’ fuel bill to surge to about $350 billion this year from roughly $252 billion in 2025, with ​fuel accounting for ⁠nearly a third of operating costs.

That is eroding profitability per passenger, with airlines now expected to earn about $4.50 per passenger, roughly half last year’s level.

On the upside, IATA expects industry revenues to rise 9.4 percent to around $1.16 trillion this year, driven by steady travel demand, higher fares, and growing income from extras such ⁠as seat ​upgrades and onboard services.

Aircraft shortages are also squeezing the sector. Delivery delays at Boeing and ​Airbus are forcing airlines to keep older, less fuel-efficient planes in service for longer, raising maintenance bills and blunting efforts to improve margins, Walsh said.

Masud Khan, the newly appointed chairman of the Bangladesh Securities and Exchange Commission, has announced an aggressive strategy to bring high-quality companies to the stock market through direct listing, describing the move as essential for building stronger institutions and ensuring the long-term sustainability of the private sector.

Speaking as the chief guest at the 10th Anniversary Gala Night of the CFA Society Bangladesh yesterday (6 June), Masud said the regulator would actively encourage state-owned enterprises, multinational companies and fundamentally strong local corporates to join the capital market.

"Once you create a listed company, you bring in more professionals, and ultimately, you solve the issues of succession and sustainability," he said.

"Private sector companies often collapse when ownership changes, but listing turns a company into a lasting institution. I personally think we are going to be very aggressive in a direct listing. We will identify good companies and tell them: go for it."

The BSEC chairman pointed out that many well-governed entities, such as banks and MNCs, already maintain transparent accounts and do not necessarily need to raise fresh capital through an Initial Public Offering (IPO). For such firms, he suggested that direct listing is the most logical route to enter the capital market.

"For banks, MNCs, and good local corporates that are already capital-sufficient, I will say: I don't want your capital; just go for direct listing to allow public participation and enhance your institutional status," he added.

Simplification over complication

Masud, who brings decades of experience from the corporate sector, laid out a regulatory philosophy based on the mantra: "Regulate where necessary and simplify where possible." He expressed a firm commitment to overhauling the existing rulebooks for IPOs, margin loans, and mutual funds, which he believes have become unnecessarily cumbersome.

"The rules have to be simplified significantly. If we want the market to deepen, we cannot work in isolation; market intermediaries must be part of this process," he said.

The BSEC chairman lamented the lack of meaningful dialogue between the regulator and market participants in recent years, noting that many constructive suggestions from reform committees previously failed to "see the light of day" because regulators believed they knew better than the market.

While advocating for simplification, he issued a stern warning against malpractice. Referring to a finance minister's stance, he said, "Please self-govern, but if you are caught violating the rules, your 'chips will fry.' Be very sure that whatever you are doing is absolutely right, because once caught, there is no easy entry back."

Science of valuation and 'horror' of paper

A key priority for the new BSEC leadership is the digitisation of the entire capital market ecosystem. Masud described the current state of reporting as a "horror story," pointing out that merchant banks and mutual funds are still required to submit applications for IPOs and rights issues on physical paper. "How are we still living in the Stone Age? This has to stop immediately," he asserted.

Addressing market volatility, he characterised the share market as a "science" involving the intricate study of valuation - a skill he noted is severely lacking among the general investing public. "We are in a situation with many uninformed investors. As a result, most trading today takes place in junk shares - small-cap companies or firms that have been closed for years. This is not efficient."

To combat manipulation in these "previous" or junk shares, the chairman announced plans for a robust, integrated surveillance system. This system will align the BSEC, the Dhaka Stock Exchange, Chittagong Stock Exchange and the Central Depository Bangladesh Limited with automated triggers to halt or release trading instantly based on suspicious activity.

CFA Society's milestone

The event also served as a platform for the CFA Society Bangladesh to celebrate a decade of promoting professional excellence. The Society recognised the top employers of CFA Charterholders in the country, including Bangladesh Bank, BRAC Bank, City Bank, IDLC Finance, EDGE AMC, IDLC Finance, Prime Bank Securities, Shanta Asset Management, Shanta Securities, Standard Chartered Bank, HSBC Bangladesh, United Commercial Bank. It also honoured top universities such as the University of Dhaka, BUP, BRAC University, and North South University for their high registration rates in the CFA Program.

M Masrur Reaz, chairman of Policy Exchange Bangladesh, delivered the keynote address, focusing on the need for a conducive fiscal policy to improve the investment climate.

Asif Khan, president of the CFA Society Bangladesh, highlighted the society's growth, noting that it now boasts over 131 Charterholders and 80 Associate Members working across the nation's most reputed financial institutions.

The government is set to announce corporate tax rates for the next five years, offering the long-term policy certainty businesses and investors have long sought for.

Tax rates, however, are unlikely to increase. Finance ministry officials familiar with the matter say the government plans to keep rates unchanged until fiscal year 2030-31.

Finance Minister Amir Khosru Mahmud Chowdhury is expected to go further in his first national budget, due on June 11, by introducing a broader three-year predictable tax framework, extending beyond the two years already announced by the interim government.

Prime Minister Tarique Rahman approved the proposal in principle on May 14 during a high-level meeting at the Secretariat, according to finance ministry officials who attended.

Under the proposed roadmap, listed companies would pay a corporate tax rate of 22.5 percent, while non-listed firms would be taxed at 27.5 percent. Both categories could qualify for reduced rates of 20 percent and 25 percent, respectively, if all income is channelled through banking transactions.

One Person Companies (OPCs) are likely to face a tax rate of 27.5 percent. Banks, insurance companies and other financial institutions would pay 37.5 percent if listed and 40 percent if non-listed.

Mobile operators are likely to be taxed at a flat 45 percent, while private universities and colleges could benefit from a reduced rate of 10 percent. Tobacco products and cigarettes would remain subject to a 45 percent tax plus a 2.5 percent surcharge.

“There will be an indication in the budget to reduce corporate tax gradually as the government looks to expand its coverage,” a senior finance ministry official said, requesting anonymity.

The official added that companies currently paying the highest rates are likely to see gradual reductions in the coming years.

In fiscal year 2021-22, the corporate tax rate for non-listed companies was reduced to 30 percent from 32.5 percent, while the rate for listed firms was cut to 22.5 percent from 25 percent.

Rupali Chowdhury, president of the Foreign Investors’ Chamber of Commerce and Industry (FICCI), welcomed the move, saying policy predictability is essential for business planning and investment decisions.

“We like predictability very much. Predictability is good. Businesses need certainty to make long-term investment decisions,” said Chowdhury.

She argued that recent increases in supplementary duties have offset the benefits of lower corporate tax rates.

“Corporate tax is imposed on profits, but supplementary duty is imposed on revenue. On one hand, the tax rate is being reduced, but on the other hand, the government is taking back more through higher supplementary duties,” she said.

Chowdhury said businesses often have little choice but to pass the additional costs on to consumers, contributing to inflation and raising operating costs.

She also expressed concern that compliant companies bear a disproportionate share of the tax burden while non-compliant firms continue to evade taxes, undermining fair competition and reducing government revenue.

Snehasish Barua, managing director of SMAC Advisory Services, said the roadmap would provide much-needed certainty but warned against locking in tax rates for an extended period.

“Globally, corporate tax rates are falling. Locking Bangladesh’s private company tax rate at 27.5 percent until assessment year 2030-31 risks severely damaging our competitiveness against regional peers such as Vietnam and Indonesia,” he said.

He noted that international practice usually limits such policy commitments to two or three years.

Barua said maintaining relatively high corporate tax rates over the long term could discourage private investment at a time when Bangladesh needs stronger economic growth and job creation.

“If the government’s ultimate goal is to create employment, it must rethink locking in uncompetitive long-term rates and instead design an agile fiscal strategy that stimulates domestic investment and robust job growth,” he added.

Masrur Reaz, chairman of Policy Exchange Bangladesh, also welcomed the proposal, saying it addresses longstanding concerns about policy inconsistency. However, he said Bangladesh’s corporate tax rates and overall tax burden are high compared with regional competitors such as Vietnam, Indonesia, Thailand and India.

“This is the first positive step, but the next important step should be rationalising the corporate tax rate, which is still quite high compared to comparable economies,” he said.

He added that advance income tax and other mechanisms increase the effective tax burden beyond the headline rate. “While predictability is welcome, the next step must be rationalisation of tax rates to improve competitiveness,” he said.

Two decades of state investment have transformed Turkey into a major exporter of drones and other military equipment, and the NATO member is now looking to build on that momentum as the West rearms and security alliances are reshaped.

Turkey, once heavily reliant on foreign arms makers, now supplies nearly 40 countries mainly in the Gulf, Africa, Asia and parts of Europe with weapons that many buyers see as cheaper, faster to deliver and more adaptable than alternatives.

As European governments reassess security dependencies following Russia's invasion of Ukraine and question the durability of US guarantees, many NATO allies increasingly see Turkey not only as a military bulwark on the alliance's south-eastern flank but also as a potential industrial partner.

Ankara hopes hosting US President Donald Trump and other NATO leaders at a summit next month will help expand arms sales and joint production in Western markets, particularly the European Union. There, Turkish firms face structural barriers including members-only defence initiatives and political resistance tied to broader diplomatic disputes.

A Reuters review of trade figures shows Turkish defence exports - including the high-profile armed drones used by Ukrainian forces - have more than tripled since 2021 to $10 billion last year, accounting for about 3.7% of total exports from the major emerging market economy.

Exports to Europe and the US almost quadrupled over the same period to $5.6 billion.

That growth reflects a maturing domestic defence industry that includes drone-maker Baykar, Turkish Aerospace Industries, and smaller firms such as Arca Defense and Kale.

Analysts say sustained state backing, flexible supply chains and a willingness to customise systems for buyers have allowed such firms to move quickly into markets where Western suppliers face capacity constraints or lengthy procurement cycles.

War threats and opportunities

Turkey aims to double defence exports in two years, its defence agency says, potentially generating vital revenues as it looks to pay down debt and fund further development.

Sitting between two major conflicts - Ukraine to the north and Iran to the south-east - Turkey's own security is also at stake, given its gaps in air defences and jet and tank engines that could be addressed through trade and technology deals.

Can Kasapoglu, senior fellow at the Hudson Institute, said Turkey's defence industry had made a "major leap" by exporting advanced systems, especially aerial drones.

The war in Ukraine, he said, underscored that modern warfare depended not only on cutting-edge platforms but also on industrial depth and sustainability - areas where Turkey has gained credibility.

Nato summit showcase

Turkey supplies about 65% of armed drones used worldwide and is a major exporter of ammunition. It also produces, or plans to produce, frigates, an aircraft carrier, air defence systems and armoured vehicles. Indonesia said last year it would buy 48 Turkish fighter jets currently under development.

Turkey's ambitions also carry political and reputational risks. Last month, it unveiled a prototype domestic intercontinental ballistic missile at a defence show in Istanbul, prompting criticism from some experts over feasibility and messaging after a promotional video depicted a hypothetical launch that appeared to target North America.

Turkish officials say the defence sector will be a focal point at the NATO meeting in Ankara on 7–8 July. Alliance chief Mark Rutte has said a planned defence industry forum there would be NATO's most comprehensive yet.

Bangladesh Bank (BB) on Sunday launched a Tk 30 billion (Tk 3,000 crore) export diversification refinance scheme aimed at strengthening production capacity and expanding the country’s export base beyond the ready-made garments (RMG) sector.

The Sustainable Finance Department of the central bank issued a circular in this regard, saying the scheme has been introduced to address product and market concentration risks arising from Bangladesh’s heavy dependence on RMG exports and to support the development of high-potential export sectors.

According to the circular, the refinance fund will be formed from the excess liquidity of scheduled banks and will operate as a revolving fund.

Bangladesh Bank will provide refinancing to participating financial institutions (PFIs) at an interest rate of 4 percent, while exporters will receive financing at a maximum rate of 7 percent.

The tenure of the facility has been fixed at three years, including a grace period of up to six months, with interest calculated under the reducing balance method.

The central bank said the scheme is designed to enhance export competitiveness, increase foreign exchange earnings, improve the country’s trade balance and create employment opportunities through the expansion of non-traditional export sectors.

Financing under the scheme will be available to industries identified as “Highest Priority” and “Special Development” sectors under the Export Policy 2024-27.

Preference will be given to exporters using locally sourced raw materials, while sectors such as jute and leather have been highlighted as key areas for export diversification.

The circular stipulates that exporters classified as loan defaulters in Credit Information Bureau (CIB) reports, businesses with overdue export proceeds and entities with a history of loan write-offs will not be eligible for financing under the scheme.

Banks and financial institutions willing to participate must sign a Participation Agreement with Bangladesh Bank’s Sustainable Finance Department.

Islamic banks will also be eligible to provide financing through Shariah-compliant investment modes, subject to compliance with the scheme’s pricing and tenure requirements.

To obtain refinancing, PFIs will have to submit applications for each disbursement within 90 days along with required documents, including demand promissory notes, letters of continuity, debit authority letters and updated CIB reports.

A minimum debt-equity ratio of 70:30 will be maintained for all investments financed under the facility.

The central bank has also introduced strict monitoring and accountability measures. PFIs will be required to submit quarterly reports within 15 days of the end of each quarter, while Bangladesh Bank will conduct regular inspections to ensure proper utilization of funds.

Under the penalty provisions, PFIs found providing false information or allowing misuse of funds will be charged a five percent penalty interest in addition to the normal refinance rate.

The amount will be recovered directly from the institution’s current account maintained with Bangladesh Bank.

The circular further states that if a borrower becomes classified as a defaulter, the concerned PFI must immediately inform the central bank.

In such cases, Bangladesh Bank may recover the entire outstanding refinance amount from the institution’s current account through a one-time deduction.

The scheme has been introduced under the powers conferred by Section 45 of the Bank Company Act, 1991, as amended in 2023, and has come into effect immediately.

Experts, bankers, academics and policymakers yesterday called for the formation of a dedicated reform commission for the banking sector, warning that years of politically backed bank takeovers, weak oversight and regulatory failures have eroded public confidence in the financial system.

The call was made at a seminar titled “Good Governance in the Banking Sector and the Role of the Media”, organised by the Economic Reporters’ Forum (ERF) at its office in Paltan, Dhaka.

Speaking as the chief guest, Information and Broadcasting Minister Zahir Uddin Swapon said the government would bring banking sector reforms under a dedicated commission.

“When commissions have been formed for the media, anti-corruption efforts, and administrative reforms, why should such an important sector be left out? We will certainly do it,” he said.

He added that good governance in the banking sector cannot be achieved without broader reforms in the state and political system. He alleged that economic data had been manipulated in the past to hide the true condition of the economy.

“Without support from the state, it would not have been possible to alter performance-related statistics and information in this way,” he said.

Swapon also stressed the need to reduce the economy’s heavy reliance on bank financing and develop a stronger capital market.

At the seminar, Mohammad Mamdudur Rashid, managing director and CEO of United Commercial Bank (UCB), said the sector is facing multiple challenges due to governance failures, although some banks have continued to perform well.

He added that the industry had also been affected by the Covid-19 pandemic, the Russia-Ukraine war and developments after August 2024.

According to Rashid, accountability and transparency are the two foundations of good governance.

“The ratio of non-performing loans rose from 11 percent to 25 percent mainly because of greater transparency. In 2025, Bangladesh Bank instructed banks to disclose the actual figures, making the true picture visible,” he said.

He also said vested interests and weak ethics contributed to current problems, adding that the media had helped expose irregularities long before they became widely acknowledged. However, he warned that inaccurate reporting could weaken depositor confidence.

Shamsul Huq Zahid, editor of The Financial Express, said Bangladesh has too many banks.

“If the economy needed 15 banks, licenses were issued for around 60. Supervising such a large number of banks has become difficult,” he said, adding that comprehensive reforms are urgently needed.

DEPOSITORS’ HARDSHIP AND REGULATORY CONCERNS

Md Shahidul Islam Zahid, professor and chairman of the Department of Banking and Insurance at the University of Dhaka, said depositors are now being forced to queue up to access their own money, which shows the depth of the sector’s problems.

“We tried to build a strong economy while hiding enormous amounts of dirt under the carpet. The question is: where were the regulators?” he said.

He criticised regulators’ role during politically backed bank takeovers and questioned why Bangladesh Bank did not raise public concerns at the time.

Referring to audit irregularities, he said some banks reported profits that later turned into losses after independent audits.

“In one case, a bank reported a profit of Tk 450 crore in 2023, but an audit later found it had actually incurred a loss of Tk 250 crore. Such manipulation involved top-tier auditors and received regulatory approval,” he said, calling for accountability for all parties involved.

Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management (BIBM), said shareholders provide only about 4 percent of funds in the banking sector, while depositors supply the remaining 96 percent.

“Yet those who own just 4 percent effectively control the banks, while depositors who provide most of the funds are struggling to access their money,” he said.

He called for greater autonomy, transparency and accountability at Bangladesh Bank, urging it to fully use its legal powers.

Sayema Haque Bidisha, professor in the Department of Economics at the University of Dhaka, stressed the need for objective analysis of financial data. She also urged the media to closely monitor how the newly announced Tk 60,000 crore stimulus package is used.

As a special guest, Nurun Nahar, deputy governor of Bangladesh Bank, said most bank funds belong to depositors, who keep their money in banks based on trust.

“When people cannot withdraw their money when needed, a crisis arises,” she said.

She said some borrowers take loans without any intention of repaying them and are identified as wilful defaulters. She stressed the need for regular inspections and effective implementation of inspection reports to prevent irregularities.

She also acknowledged that many banking sector scandals were first exposed through media reports, adding that misuse or embezzlement of public money can never be justified.

Masrur Riyaz, chairman of Policy Exchange Bangladesh, also spoke at the event.

The keynote paper was jointly presented by Obaidullah Rony, special correspondent of Samakal, and Sanaullah Sakib, senior reporter of Prothom Alo.

The seminar was chaired by ERF President Doulot Akter Mala and moderated by ERF General Secretary Abul Kashem.

Gold fell about 3 percent on Friday after a stronger-than-expected US jobs report reinforced expectations that ‌the Federal Reserve will keep interest rates higher for longer amid inflation concerns fuelled by the war in the Middle East.

Spot gold was down 2.96 percent at $4,341.52 per ounce at 1:44 p.m. EDT (1744 GMT), after falling ​to its lowest level since March 24 earlier in the session. Bullion was down ​about 4.3 percent this week.

US gold futures for August delivery settled 3.1 percent lower at $4,365.3.

Nonfarm ⁠payrolls increased by 172,000 jobs in May after rising by an upwardly revised 179,000 ​in April, the US Labor Department’s Bureau of Labor Statistics said in its report. A Reuters ​poll had forecast a gain of 85,000 jobs after a previously reported rise of 115,000 in April.

“We’ve got payrolls that came in fairly significantly over what was expected,” said Bart Melek, global head of commodity strategy ​at TD Securities.

“In light of the fact that we continue to have the war in ​Iran and very large energy prices and inflationary pressures, it makes it quite unlikely that the Fed is ‌in ⁠any mood whatsoever to lower rates. The implication for gold here is that the cost of carry is getting quite high.”

US Treasury yields jumped after the release of the jobs data, increasing the opportunity cost of holding non-yielding bullion.

The price of Brent crude oil was on track ​for a weekly gain. ​Bullion has fallen more ⁠than 17 percent since the US-backed war with Iran began in late February. The conflict has led to a surge in oil prices and stoked fears of ​inflation and higher interest rates.

Although gold is seen as an inflation hedge, ​higher rates tend ⁠to weigh on the metal. Markets are currently pricing about a 72 percent chance of a Fed rate hike in December, according to CME Group’s FedWatch tool, compared to about 50 percent before the jobs data.

Gold demand ⁠was ​subdued in India this week, while premiums in China ​eased.

Bangladesh’s overall inflation climbed to a 16-month high of 9.42 percent in May, driven largely by a sharp rise in food prices that is squeezing household budgets, particularly for low- and middle-income families.

According to data released by the Bangladesh Bureau of Statistics (BBS), food inflation rose to 9.06 percent in May from 8.39 percent in April, reflecting higher prices of essential commodities. Non-food inflation also increased, reaching 9.71 percent from 9.57 percent in April.

Rural areas bore the brunt of the rise, with inflation climbing to 9.48 percent from 9.05 percent the previous month. Urban inflation rose from 9.02 percent to 9.25 percent.

A BBS official, speaking on condition of anonymity, said the increase was spread across a range of commodities rather than concentrated in any single category of items.

“It increased in some places and decreased in others. For example, summer vegetable prices have been easing, but year-round and winter vegetables such as tomatoes and carrots are rising again. Egg prices have also gone up,” the official noted.

They added that the full effect of the recent fuel price adjustment had not yet been captured in the May figures, and that a further spike in inflation next month was likely as a result.

Analysts and policy researchers agree that the current trajectory is cause for concern, and that the risks ahead may be greater than the May figures alone suggest.

Ashikur Rahman, principal economist at the Policy Research Institute (PRI) of Bangladesh, said the government was compelled to adjust fuel and electricity prices to tackle the impacts of the US-Israel war on Iran.

It is natural that the impact will eventually spread across the entire supply chain and be reflected in higher prices, he noted.

“What is more concerning is that inflation may rise further in the coming days,” he said, arguing that the financial situation, combined with planned subsidy expansion in the budget, pointed in that direction.

Rahman said judging from the design of the budget, it could no longer be said that the country is pursuing a contractionary monetary policy, since such a policy required a tight fiscal stance alongside a high policy rate.

Instead, he said, the government was moving toward expansionary fiscal policy and a looser monetary environment simultaneously — a combination that carried significant inflation risk.

“If immediate attention is not given to this issue, inflation could rise sharply within a short period,” he cautioned, noting that similar situations have been observed in Pakistan and Sri Lanka.

“When an economy experiences a supply shock, some argue that there is no need for a contractionary monetary policy environment. This view is wrong,” he said. “To bring inflation under control, a tight monetary environment is necessary, accompanied by a correspondingly tight fiscal stance. Unfortunately, we are moving in the opposite direction on both fronts.”

The Centre for Policy Dialogue (CPD) has reached a similar conclusion about the underlying drivers.

In a recent report, the think-tank found that external shocks, including the Covid-19 outbreak, the Russia–Ukraine war, and the Middle East conflict, have exerted significant upward pressure on essential commodity prices in Bangladesh, exposing the economy’s growing vulnerability to international disruptions and their spillover effects on domestic inflation.

Both Rahman and CPD point to structural weaknesses in domestic markets as compounding the problem.

The CPD called for stronger monitoring and regulatory oversight of intermediaries, particularly those who trade in bulks, to curb collusive practices and artificial price manipulation in essential commodity markets.

It also recommended reducing excessive layers of intermediaries in supply chains to narrow the gap between farm-gate and retail prices.

The think-tank also urged the government to maintain strategic reserves of essential food items and release them during supply shocks to stabilise prices. It also recommended strengthening social protection schemes for low-income households in light of recent hikes in cooking gas and transportation costs.

PRI’s Ashikur, meanwhile, noted that with inflation approaching 10 percent, attempting to stimulate growth through expansionary policies was highly risky.

He recommended attracting investment through productivity-enhancing reforms instead, including privatisation of state-owned enterprises, easing of investment and business regulations, and prioritised spending in the energy and logistics sectors.

A motorcycle helmet declared at just $3, or about Tk 370, during import is being sold in the local market for as much as Tk 4,500.

The wide price difference between import values and retail rates has prompted local manufacturers and large importers to accuse customs authorities of failing to properly assess imports of the essential protective headgear for riding.

They allege that the failure encourages under-invoicing, deprives the government of revenue and undermines both local production and rider safety.

Meanwhile, a senior revenue official acknowledged that under-invoicing, where importers declare goods at lower-than-actual values to reduce taxes, remains a “major challenge” in helmet imports.

According to customs data, Bangladesh imported 8.75 lakh motorcycle helmets in 2025. The total declared value stood at $2.45 million. As per this estimate, the average import value per unit helmet is less than $3, or about Tk 370 at an exchange rate of Tk 123 to the dollar.

Last year, India supplied the majority of imports, accounting for 633,384 helmets, followed by China with 223,293 units. Smaller quantities arrived from Vietnam, Taiwan, Singapore, Indonesia and Japan.

Customs records show helmets imported from India were declared at an average value of $3.02 per unit, while those from China were valued at just $1.96.

But visits to markets in Dhaka, as well as in Chattogram, found many of the same brands selling for between Tk 1,200 and Tk 6,000, depending on model and quality.

Import data show that several Indian brands, including Vega, Steelbird, Gliders, Axor, Telish and Aerostar, were declared at prices ranging from $2.50 to $3 per unit. Many of those helmets are retailing in the local market for between Tk 1,100 and Tk 4,500.

In May this year, Narayanganj-based New Nation Automobiles imported 7,236 Gliders helmets from India, declaring a unit value of $2.52. Customs assessed the shipment at $3 per unit for duty purposes.

Even after adding duties, taxes and value-added tax (VAT), which together amount to 59 percent, the estimated landed cost would remain below Tk 600 per helmet, according to import documents. But the same brand is selling in the local market for between Tk 1,200 and Tk 4,500.

Contacted, Nurul Haque, proprietor of New Nation Automobiles, said the declared import value did not reflect the total cost of bringing a product to market.

“After adding LC commissions, shipping costs, customs duties and VAT, our cost exceeds Tk 800 per helmet. We sell to wholesalers at Tk 900-Tk 950. By the time the product reaches retailers through multiple distribution layers, the price increases further,” Haque told The Daily Star.

He said helmets priced between Tk 800 and Tk 1,200 account for nearly 80 percent of market demand.

Industry players, however, say the practice remains widespread and is hurting compliant businesses.

Rokon Sarkar, deputy director of ACI Motors, which imports helmet brands including SMK and Studds, said compliant importers are facing mounting pressure as some traders allegedly understate helmet values to reduce taxes.

“Some importers are declaring a helmet at only $2.5, while we declare the actual price, around $15, and pay taxes and VAT accordingly,” he told The Daily Star.

He said the practice allows some importers to avoid a substantial portion of the roughly 62 percent duty and tax on helmet imports, making it increasingly difficult for compliant businesses to compete.

According to Sarkar, under-declaration is also contributing to the spread of lower-quality helmets while reducing government revenue.

ACI Motors previously imported premium Italian brands Nolan and X-Lite, which sold for between Tk 25,000 and Tk 60,000.

Motorcycles have become increasingly popular in major cities as a fast and affordable means of transport. According to Bangladesh Road Transport Authority (BRTA) data, the number of registered motorcycles stood at 45.8 lakh at the end of 2024, up from 31.25 lakh four years ago.

At the same time, motorcycle crashes have emerged as the leading cause of road fatalities. According to the Road Safety Foundation, motorcycles were involved in around 40 percent of all fatal road crashes in 2025.

The organisation recorded 3,029 motorcycle-related accidents that year, killing 2,671 riders and passengers.

The World Health Organization (WHO) says quality helmets can reduce the risk of death in a road crash by more than six times and lower the risk of brain injury by up to 74 percent.

While most Vega, Steelbird and Gliders helmets were declared at around $3 per unit, premium brands such as Studds, SMK and Graphic were declared at values ranging from $8.50 to $30.80. These products usually retail for between Tk 2,200 and Tk 6,000 in Bangladesh.

An NBR official, speaking on condition of anonymity, said under-invoicing in helmet import remains a major problem.

According to an analysis by the NBR’s valuation committee, around 95 percent of helmets imported in 2025 were declared at $3 or less per unit. Another 4 percent were declared at values between $3.50 and $15, while only about 1 percent were declared within the $15-$31 range.

“Whenever importers declare values of $3 or less, we usually apply a loading of $0.20 to $0.50 cents during assessment. This helps recover part of the revenue loss, although we know the actual value is often much higher,” the official said on condition of anonymity.

Industry representatives argue that the consequences extend beyond lost revenue and are also affecting road safety and domestic manufacturing.

RN Paul, managing director of RFL, which manufactures Safemet helmets, said local manufacturers could expand production if imported helmets were assessed at their proper value during customs clearance.

“Increasing capacity is not difficult for us,” he said. “But if the existing duty structure continues, there is little point in expanding because consumers will not buy our products.”

Shah Muhammad Ashequr Rahman, chief marketing officer of Bangladesh Honda Private Limited, which imports Honda helmets, said quality-certified helmets are becoming less competitive because of lower import value declarations by non-compliant traders.

He said the practice allows cheaper and lower-quality helmets to dominate the market, discouraging imports of internationally certified products.

Rahman also said the BSTI approval process requires multiple sample units for each size and model, along with testing and certification fees, increasing costs for compliant importers.

“If regulatory costs, approval time and import duties are reduced while maintaining proper quality standards, internationally certified helmets will become more accessible and affordable,” Rahman said.

Global oil inventories are running dangerously low as a deal to re-open tanker traffic through the Strait of Hormuz has proven elusive, and industry executives and analysts warn there could be another oil price shock in the coming weeks, severe enough to upset broader financial markets.

Some fear the next move higher for oil prices would pose a risk to economic growth, bond yields and the bull market for stocks.

"We're approaching unheard of inventory levels. I mean, really, really low levels. You can debate whether that's going to hit those really low levels in two weeks or three weeks. But once you get to that point, you'll see prices shoot up," Neil Chapman, Exxon Mobil senior vice president, said at the Bernstein conference in New York on 28 May.

Chapman said that if inventory levels get much lower, dated Brent, which is used to price more than 60% of globally traded crude, could rise to $150 or $160 a barrel.

Crude inventories and strategic reserve releases have kept oil prices somewhat under control in the four months that the war with Iran has kept supplies from reaching much of the world. Crude futures have been trading below $100 a barrel despite the strait remaining effectively closed.

For days, US President Donald Trump has said a deal to reopen the strait is imminent. But so far it has been elusive, and warnings from the oil industry have gotten sharper.

If stock draws continue at their current pace, sinking global oil inventories could hit critically low levels just as summer fuel demand hits its peak, the head of the International Energy Agency's oil industry and markets division, Toril Bosoni, said on Tuesday.

"Once they (cushions) thin out, prices have to do more of the adjustment work. That means either consumers pay more or demand gets destroyed," said Mehmet Beceren, vice president and senior market strategist at Rosenberg Research, who said a tipping point could be reached by the end of June.

"Once we move into the back half of June it is likely that we see oil prices rapidly appreciate" unless the Strait of Hormuz throughput normalises to pre-conflict levels, JPMorgan's Data Assets and Alpha group predicted, citing the bank's research.

In the US, the world's largest crude producer, crude inventories including the Strategic Petroleum Reserve fell to 791 million barrels in the week to 29 May, their lowest since February 2024, the Energy Information Administration said on Wednesday.

US crude stocks are down almost 64 million barrels since the start of the war, and have fallen for eight straight weeks.

The US is in the process of releasing 172 million barrels from the SPR, part of a coordinated effort by the IEA to release a record 400 million barrels of oil to combat rising prices.

Those stock releases alongside a drop in Chinese seaborne crude imports, which in May hit the lowest level in nearly 10 years, have helped quell some of the supply shock.

"I think the risk of a second price shock is real, but the key point is that it may come from the exhaustion of buffers rather than from the initial Hormuz closure itself," Shohruh Zukhritdinov, a Dubai-based oil trader, said.

Drawdowns in US strategic petroleum reserves, fuel substitution and other factors that have limited the price spike may not be enough if the disruption drags on, analysts in JPMorgan's Data Assets and Alpha group said.

The White House did not respond to a request for comment.

Knock-on effects

Investors said that the conflict has embedded a lasting risk premium in crude, with knock-on effects for inflation, bond yields and consumer spending.

Recent events suggest a lasting structural change in energy markets, said Joseph Tanious, chief investment strategist at Northern Trust Asset Management.

"The Strait of Hormuz is now firmly established as a persistent geopolitical chokepoint," Tanious said, adding that a return to pre-war oil prices below $70 looked unlikely even if tensions eased.

As a result, he sees an uneven global impact, with Europe and Asia remaining more vulnerable to sustained energy inflation, while the US, a net exporter, is relatively better insulated.

Higher oil prices are "a modest headwind" for the US economy, said Adam Schickling, senior economist at Vanguard, thanks to domestic oil production and strong investments in artificial intelligence which have offset pressure on consumers.

Yet in a scenario where crude rises to around $120 per barrel and remains there for a year, US economic growth could slow by about 0.4 percentage points, according to Vanguard's estimates.

For households, the impact depends less on the precise level of oil prices and more on how long they stay elevated. Consumers retain some buffer, with fuel costs accounting for a smaller share of income than in previous oil shocks. But that cushion diminishes over time.

If prices remained high through the next three months as the summer driving season begins, consumer spending could slow further, said Phil Blancato, chief market strategist at Osaic.

"Consumer sentiment is already at all-time lows, but if oil prices stay here for another three months, or move meaningfully higher in the short term, start to look for a real economic impact," Blancato said, urging portfolio diversification, including looking outside of equities.

SpaceX’s record-smashing IPO plan shows investors are eager to keep pouring money into all things AI, even as alarm bells ring for the wider economy.

And that has analysts wondering: Where will the cash come from if soaring inflation dents growth? Or if the artificial intelligence rollout proves less profitable than hoped?

HISTORIC INFLUX

Investment by AI labs is at historically “unprecedented” levels, with expected outlays by the 11 top American players over the next 12 months representing nearly three percent of US GDP, said Raphael Gallardo, chief economist at asset management group Carmignac in Paris.

At the beginning of this year confidence in that spending surge wobbled, with chipmakers and other tech hardware firms taking a hit on stock markets worldwide. But despite the outbreak of an ongoing war in the Middle East, “for now, those concerns largely have been dismissed by the markets” after reassuring profit reports, said Adam Sarhan of 50 Park Investments in New York.

“If you look at the actual earnings, those fears did not come to pass and in fact a lot of companies” committed to spend more on AI, Sarhan told AFP. Google for example announced this week that it would raise up to $80 billion for a major expansion of its AI infrastructure.

It said it was “compute constrained in the near term” -- jargon meaning it cannot build necessary infrastructure fast enough to meet demand. SpaceX meanwhile aims to raise $75 billion in an initial public offering expected next week, by far the largest IPO ever.

Its rivals OpenAI and Anthropic, behind ChatGPT and Claude respectively, are set to follow suit in the coming months, valuing the companies around a whopping $1 trillion.

GOBBLING UP CHIPS

Beyond US-based chatbot makers, companies worldwide have profited from the AI rush, especially chipmakers providing their computing power.

South Korea’s benchmark Kospi stock index for example has nearly doubled its value since January this year, propelled by chipmakers Samsung Electronics and SK hynix -- both also now trillion-dollar companies.

Those two companies alone account for half the Kospi’s market capitalisation.

“The fact that two companies make up such a large portion of the market highlights just how concentrated that dependence is, and that is the biggest risk factor,” said Kim Dae-jong, a professor at Sejong University.

In Taiwan, TSMC, a supplier to AI chip specialist Nvidia, represents on its own 40 percent of the Taipei stock market, while technology investor SoftBank in Japan this week surpassed Toyota as the country’s most valuable company.

In the United States, red-hot demand for Micron and Intel chips have seen their share prices more than double so far this year, while European equity benchmarks have soared thanks in large part to Infineon and STMicroelectronics.

TOO HOT FOR COMFORT

There are signs however that market expectations have outstripped the ability of companies to meet them.

This week the US chip specialist Broadcom saw its shares plunge despite its second-quarter profit having nearly doubled to $9.3 billion as its forecast for third-quarter chip revenue growth of over 200 percent failed to meet expectations.

“The support provided by huge capital inflows to AI and chip stocks is fading, exposing the often extreme overpricing in these sectors,” said Andreas Lipkow, analyst at CMC Markets.

“In a best case, investors will take profits ahead of the summer pause, and markets would have time to consolidate,” he said, especially if they sell tech holdings to buy the new SpaceX shares.

“If not, the likelihood of a major short-term correction on international equity markets remains high,” he said.

“These companies are cash cows and we’re in one of the biggest investment cycles in history”, said Frederik Ducrozet, head of macroeconomic research at Pictet Wealth Management in Switzerland.

But so far none of the three AI powerhouses -- SpaceX, Anthropic and OpenAI -- are turning profits, he noted, “which argues for more caution”, he said.

AI VS STAGLFATION?

Analysts and policymakers are worried that AI enthusiasm cannot escape the gravitational pull of soaring energy costs -- data centres suck huge amounts of electricity -- and slowing growth overall.

In the US alone, AI investments currently account for nearly nine-tenths of GDP growth overall -- overshadowing weak consumer demand and rising costs for small and midsize firms, said Gallardo at Carmignac.

“AI-related spending has become a huge part of the US growth story... the same handful of firms raising money, buying chips, leasing compute and booking revenues off one another,” added James Smith, an economist at ING.

“But the fact remains that if you strip out AI, the rest of US private non-residential investment has been falling year-on-year for six straight quarters,” he said.

And the situation could worsen if the US Federal Reserve, the European Central Bank and other central banks raise rates to contain energy-fuelled inflation, something many analysts consider inevitable.

The government is considering a package of incentives in the upcoming budget to boost investment in renewable energy, aiming to reduce pressure from energy supply uncertainty and continuously rising energy prices.

At the same time, it may announce new incentives or extend existing benefits for another three to four years to encourage investment in local industries, particularly home appliances, computers, laptops and electric vehicles (EVs).

Currently, locally manufactured computers and laptops enjoy VAT exemption, which is set to expire on 30 June next year. The government may extend this benefit until 2030.

Similarly, the reduced-rate import duty facility on machinery and components used to manufacture home appliances such as blenders and juicers is due to expire this year, but could also be extended until 2030.

Meanwhile, the total tax burden on imported electric vehicles currently stands at around 90%, which may be significantly reduced. Sources also said that VAT and income tax concessions, along with duty benefits on imported raw materials, may be offered to support local EV manufacturing.

These developments have emerged from budget-related discussions within the finance ministry and the National Board of Revenue (NBR).

At present, import taxes on various rooftop solar equipment and components range between 36% and 63%. The proposed budget may reduce these rates to 15%.

In addition, tax exemption facilities for companies investing in commercial renewable energy projects may be extended from 2030 to 2035.

An NBR income tax official involved in budget preparations said investors making investments during this period would enjoy a full tax holiday for the first five years, followed by a 50% exemption for the next three years and a 25% exemption for the subsequent two years.

Speaking to TBS on condition of anonymity, the official said the government is preparing to take whatever measures are necessary in the upcoming budget to stimulate business and investment.

He added that renewable energy is one of the government's priority sectors, which is why the highest levels of tax, VAT and income tax incentives are being considered to attract more investment.

Investors already supplying energy through renewable energy, particularly solar power, have welcomed the move.

Saleudh Zaman Khan, managing director of NZ Tex Group, one of Bangladesh's leading textile manufacturers with an installed solar capacity of around 10MW, told TBS, "Import taxes on some solar equipment currently exceed 90%. If these taxes are reduced, entrepreneurs will be much more interested in investing in the sector."

He explained that installing one megawatt of solar capacity currently costs between Tk3 crore and Tk3.25 crore, including the cost of imported equipment and related taxes. If import taxes are reduced to 15%, installation costs could fall by around Tk50 lakh per megawatt.

"Even then, the cost will remain higher than in India," he added.

Industrial solar power generation in Bangladesh currently exceeds 500MW. However, industry insiders say solar installations are expanding rapidly and total generation capacity could more than double by the end of this year.

Golam Baki Masud, general secretary of the Bangladesh Solar Module Manufacturers Association and managing director of Greenfinity Energy Limited, noted that local investors already have the capacity to supply many solar sector components domestically.

"If local industries are not given adequate protection in these equipment categories, existing manufacturers will disappear," he warned.

"The government must also take this into account. Due to unequal competition, nine out of 11 local solar equipment manufacturing companies have already disappeared."

Push for local home appliance and computer industries

The government last year announced VAT rates for several local industries up to 2030. However, VAT exemptions for computer and laptop manufacturing are scheduled to expire in June 2027 and may now be extended for another three years.

Likewise, the reduced-rate import duty facility on raw materials used in manufacturing home appliances such as blenders and juicers is due to expire this year, but may also be extended until 2030.

Kamruzzaman Kamal, director of Pran-RFL Group, one of the country's leading home appliance manufacturers, told TBS, "If government policy support for local industries continues, dependence on imports will decline."

Experts have also supported continuing policy assistance for import-substitution industries.

Snehasish Barua, managing director of SMAC Advisory Limited, told TBS, "As local industries are gradually building their capabilities, extending support for some more time is a positive decision."

However, he added that policymakers should assess whether these incentives are achieving their intended objectives, particularly whether import dependence is actually declining and how much benefit is ultimately reaching consumers.

Fifteen of the country’s 61 banks accounted for as much as 85 percent of defaulted loans as of March, according to central bank data, highlighting how loan irregularities, fraud and financial scams have become concentrated in a small group of commercial lenders.

Combined non-performing loans (NPLs) in these banks stood at more than Tk 4.99 lakh crore, out of total classified loans of around Tk 5.88 lakh crore across the banking sector, according to Bangladesh Bank (BB) data.

The stressed lenders are Agrani Bank, Janata Bank, Rupali Bank, Sonali Bank, AB Bank, Exim Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank, Union Bank, Islami Bank Bangladesh, IFIC Bank, National Bank, Padma Bank and Bangladesh Krishi Bank.

They were selected based on both the volume and ratio of defaulted loans.

In terms of volume, Islami Bank Bangladesh has the highest NPLs at Tk 95,629 crore, equivalent to 50.88 percent of its total loans.

The bank was taken over by the S Alam Group in 2017. The controversial conglomerate later extended around 80 percent of the bank’s total loans to its own companies and associated firms, violating banking rules and regulations.

After the fall of the Awami League-led government in August 2024, the bank was freed from the group’s control and is now running under the supervision of BB through a board of independent directors.

The country’s largest shariah-based bank is now facing fresh uncertainty over the appointment of a new chairman.

“A large share of its defaulted loans is linked to the S Alam Group, with recovery remaining minimal,” said Md Altaf Hossain, acting managing director of the bank.

He told The Daily Star that the bank is trying to recover loans from other borrowers, but progress has been limited as even regular customers have become reluctant to repay.

“Under the current circumstances, the bank is prioritising the prevention of deposit withdrawals, while loan recovery efforts have received less attention,” he added.

At Exim Bank, bad loans stood at Tk 36,724 crore in March, representing 68.58 percent of total loans.

The bank was largely influenced by Nazrul Islam Mazumder, chairman of Nassa Group and former chairman of the Bangladesh Association of Banks (BAB). Loan irregularities and weak corporate governance have pushed the lender into a merger process with four other troubled banks.

Among lenders linked to the S Alam Group, First Security Islami Bank reported NPLs of Tk 60,843 crore, or 97.39 percent of total loans.

Global Islami Bank’s NPLs stood at Tk 14,243 crore, or 97.47 percent, while Social Islami Bank reported NPLs of Tk 30,439 crore, or 80 percent. Union Bank recorded NPLs of Tk 27,102 crore, or 97 percent of its loan portfolio.

These banks were heavily influenced by the S Alam Group, which secured a large portion of loans from them.

AB Bank’s NPLs stood at Tk 19,506.79 crore, accounting for 54 percent of total loans, while National Bank reported Tk 24,305 crore, or 57 percent.

Both lenders faced loan irregularities, governance failures and financial scandals during the Awami League government.

IFIC Bank was dominated by Salman F Rahman, vice-chairman of Beximco Group and an influential adviser to ousted prime minister Sheikh Hasina. Its bad loans stood at Tk 28,174 crore in March, equivalent to 63.36 percent of total loans.

Md Mehmood Husain, independent director and current chairman of the bank, said the volume of defaulted loans has not increased significantly, although the ratio has risen.

“We are trying to bring it down. The increase in the ratio of bad loans is mainly due to the lack of loan growth; in fact, the overall loan portfolio is shrinking, which has pushed up the proportion of non-performing loans,” he said.

He added that the ratio is expected to ease somewhat by the end of June, with efforts focused on reducing losses.

At crisis-hit Padma Bank, bad loans stood at Tk 5,026 crore, representing 91 percent of total loans.

Among state-owned lenders, Janata Bank reported the highest volume of bad loans at Tk 74,996 crore, or 67.4 percent of its portfolio. Agrani Bank’s NPLs stood at Tk 28,899 crore, or 40 percent, while Rupali Bank reported Tk 20,319 crore, or 43.37 percent. Sonali Bank recorded Tk 16,242 crore, equivalent to 17.85 percent.

NPLs at Bangladesh Krishi Bank stood at Tk 17,102 crore, or 47 percent of total loans.

Dhaka's stock market surged to its highest turnover of 2026 today (4 June) as the capital market regulator Bangladesh Securities and Exchange Commission (BSEC) saw its outgoing chairman resign and a new one appointed on the same day.

Trading on the Dhaka Stock Exchange (DSE) hit Tk1,351 crore by the close of the session — the highest single-day turnover this year — buoyed by renewed investor confidence following the leadership transition at the top securities regulator.

Markets began climbing in the morning after news broke of the resignation of BSEC Chairman Khondoker Rashed Maqsood and four commissioners.

Turnover crossed Tk1,000 crore before noon. Sentiment strengthened further when Masud Khan was appointed the new BSEC chairman during the session, pushing activity higher through the closing bell.

The previous year-high had been set just a day earlier, when DSE turnover stood at Tk1,279 crore on Wednesday.

Positive momentum had, in fact, defined the entire week. All four trading sessions since markets reopened on Monday following the Eid-ul-Adha holiday recorded gains, with the benchmark index rising each day.

There was no exception today. The flagship DSEX index gained 33 points, the Shariah-based DSES rose 9 points, and the blue-chip DS30 added 11 points.

Advancers outpaced decliners, with 242 companies posting gains against 104 losers, while 45 others closed unchanged.

Genex Infosys PLC led the gainers with a 10% jump, while Jamuna Bank PLC was the top loser, shedding nearly 10%.

The Chittagong Stock Exchange (CSE) also closed in the green. The all-share CASPI index advanced 83 points, with 152 companies gaining against 74 declining and 29 unchanged. Total turnover at the CSE stood The newly appointed chairman of the Bangladesh Securities and Exchange Commission (BSEC), Masud Khan, has vowed to strengthen market surveillance and enforcement while placing a strong emphasis on attracting foreign investment, as the regulator undergoes a major leadership overhaul.

Speaking at his first press conference after assuming office today (4 June), Masud outlined an ambitious roadmap aimed at restoring investor confidence, enhancing transparency, and building a more resilient capital market.

The Financial Institutions Division (FID) appointed Masud Khan as BSEC chairman for a four-year term through a notification this afternoon, just hours after the previous chairman and four commissioners resigned.
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Alongside him, three new commissioners have also been appointed for the same tenure. The ministry also asked them to resign from their current positions for taking charge in the BSEC.

Masud Khan brings over 45 years of experience in multinational and local corporations. He currently serves as the group Chief Executive Officer of Crown Cement and Chairman of Unilever Consumer Care Limited. Previously, he was the chief financial officer of LafargeHolcim Bangladesh for 18 years and spent two decades with British American Tobacco in finance and related roles both at home and abroad.

He also holds key independent directorships, including chairman of the Audit Committee at Singer Bangladesh and Community Bank Bangladesh, and chairman of the Nomination and Remuneration Committee at British American Tobacco. A seasoned academic, Masud has been a lecturer at the Institute of Chartered Accountants of Bangladesh for 45 years.

Other newly appointed commissioners include Advocate Nahid Mahtab, a former deputy attorney general; Tanwir Habib Rahman, finance director of Asa International; and Md Nafeez Al Tarik, managing director of Dhaka Bank Securities Limited.

'BSEC to develop integrated surveillance system'

At the press conference, Masud said the regulator would develop a modern, integrated surveillance system by coordinating with the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE), and Central Depository Bangladesh Limited (CDBL). The system will enable real-time monitoring across the market, significantly enhancing oversight capabilities.

He noted that particular attention would be given to "Z" category securities, where governance weaknesses, disclosure gaps, and investor protection risks are relatively higher.

The new chairman stressed that market manipulation – including insider trading, circular trading, wash trades, pump-and-dump schemes, and front running – would be identified more swiftly, with real-time enforcement actions replacing the traditional delayed response.

"In future, we will not wait seven or 14 days for explanations. With real-time monitoring, we will move towards immediate action," he said.

He added that in cases where there are suspicions of market manipulation, insider trading, or failure to disclose information, stock exchanges would be empowered under BSEC supervision to take immediate steps, including temporary suspension of trading if necessary.

Clarifying the regulator's stance, Masud said the BSEC's objective is not to control prices or interfere with natural market movements.

"Our goal is not to prevent market fluctuations. Our objective is fair price discovery and ensuring equal access to information," he said. "Prices will be determined by the market, not by manipulation."

He warned that those who abuse investor trust, engage in manipulation, or violate securities laws would face stricter enforcement actions than in the past.

The new chairman also highlighted a long-term vision for capital market development, noting that a sustainable and successful market evolves through a structured progression.

This includes smarter regulation, digitalisation, an increase in quality listed companies, stronger institutional investor participation, higher foreign investment, and robust enforcement and governance frameworks.

"Confidence cannot be built through artificial market support or administrative intervention. It comes from trust, and trust comes from fairness, transparency, consistency, and accountability," he said.

He further pledged greater engagement with market intermediaries, stock exchanges, professional bodies, and policymakers, adding that the regulator would welcome constructive criticism and ensure accountability within its own operations.

Leadership transition

The leadership transition follows the resignation of former BSEC chairman Khondoker Rashed Maqsood, who had been appointed on 18 August 2024. In a statement earlier on Thursday, Maqsood said he stepped down after 21 months in office to focus on personal pursuits.

Reflecting on his tenure, Maqsood said his team took charge during a turbulent period and initiated a comprehensive overhaul of the regulatory framework. During this time, five key rules—including those related to margin, initial public offerings (IPOs), mutual funds, debt securities, and whistleblower protection – were finalised and gazetted.

Additionally, three draft rules on corporate governance, auditing, and corporate restructuring were published for public consultation, while two major laws – the Bangladesh Securities and Exchange Commission Act and the Capital Market Stabilisation Fund Act – were prepared for enactment.at Tk27.46 crore.

US-traded chipmakers plunged on Friday, losing about $1.3 trillion in market value, with deep losses in AI heavy hitters including Nvidia, Micron Technology and Advanced Micro Devices, as Broadcom's weak report earlier this week reverberated across Wall Street.

The PHLX chip index slumped 10.3% in its steepest one-day loss since March 2020, when the coronavirus pandemic threw global markets into a tailspin.

Friday's sell-off added to losses on Thursday after Broadcom issued a quarterly report that showed demand for its custom AI chips business falling short of lofty expectations.

The PHLX's combined loss of 12% over two sessions shows investors are becoming more concerned about pricey, high-flying tech stocks just as Elon Musk prepares a blockbuster initial public offering next week for SpaceX at an exceedingly high $1.75 trillion valuation.

The chip index hit a record high on Wednesday, and even after Friday's losses it remains up 73% year to date.

Nvidia, the world's most valuable chipmaker, fell about 6%, cleaving more than $300 billion from its market capitalisation.

Micron Technology tumbled 13%, evaporating about $150 billion in market value. Recent investor darling Marvell Technology gave back 17%, while AMD lost almost 11%.

"You've had a lot of people here that were just blindly buying the dip," said Dennis Dick, a proprietary trader at Triple D Trading. "Blindly buying the dip had been winning you money, but that ended today."

Worries about higher interest rates also spooked investors across the US stock market following stronger-than-expected jobs data, and the S&P 500 fell 2.6%.

One of the biggest beneficiaries of the AI race, Broadcom, lost 7.9%, bringing its two-day loss to almost 20%.

"The semiconductor sector was way overbought. That's why we're seeing the sell-off. I don't think it's the end of the (semiconductor) bull market," said Ohsung Kwon, Chief Equity Strategist at Wells Fargo.

Britain floated the idea of striking a tech deal with the EU to boost ties in AI and other innovative sectors on Friday, as part of a push to rebuild post-Brexit relations.

UK business and trade secretary Peter Kyle said he discussed the possibility with EU trade chief Maros Sefcovic during a Brussels meeting focused on other bilateral issues.

“There are enormous opportunities out there for us to partner,” Kyle told a conference in the Belgian capital. “A tech partnership, for example.”

With its vast capital markets London could play a key role in helping scale-up tech firms to rival American and Asian giants, he said.

“We are the spin-out capital of Europe. We are the unicorn capital of Europe,” Kyle later told reporters, referring to the creation of new companies and start-ups valued at more than $1 billion.

“But I want to go much further, and we are much more likely to go global by working with European countries and the European Union.”

Britain signed a similar -- later-suspended -- deal to align on innovation and spur private-sector investment with the United States in September.

The idea of a repeat with the EU comes as London and Brussels painstakingly negotiate other matters under a “reset” in relations vowed by British Prime Minister Keir Starmer to fire up Britain’s insipid economy.

Kyle met Sefcovic as the EU and UK are due to hold a summit at a yet-to-be confirmed date, likely in July.

Both parties are hoping to present several deals, namely on food and animal safety standards, a youth mobility scheme, and the linking of their emissions trading systems, at the event.

But discussions have hit a series of roadblocks.

Britain is said to be wanting a cap on the number of visas granted under the mobility scheme and to be unwilling to pay into some EU funds as requested by Brussels.

The EU on the other hand has been demanding greater access to British universities for its 18- to 30-year-olds -- and for them to be allowed to pay the same tuition fees forked out by their local peers.

Kyle said he had “hope and optimism” concerning the summit, after what he described as a “positive” and “vigorous” conversation with Sefcovic.

The dollar clung to its recent strength near a two-month ​high today (4 June) as fresh Gulf hostilities sapped risk appetite, while the Japanese yen hovered near ‌the key 160 level that kept traders on intervention alert.

Iran on Kuwait damaged its airport and injured dozens yesterday, while the US military carried out strikes near the Strait of Hormuz, complicating prospects for a diplomatic end to the war.

Although Israel and Lebanon ​agreed to a broader peace deal remained elusive, keeping oil prices elevated and supporting demand ​for the safe-haven dollar.

The euro was 0.1% stronger at $1.1609. The European ⁠Central Bank is set to raise its deposit rate to 2.25% on 11 June to curb inflation. The ​British pound traded flat at $1.3427 .

The risk-sensitive Australian dollar was steady at $0.7129 after data showed Australia's balance on goods trade swung ​back into surplus in April.

The New Zealand dollar rose roughly 0.3% to $0.5875, recovering from a one-week low.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was a shade higher at 99.45, hovering near the ​strongest level since 7 April in the previous session.

"The USD's safe-haven status appears to be strengthening again" with oil ​prices and global yields rebounding on geopolitical tensions, said Sim Moh Siong, FX strategist at OCBC.

"There is no strong case for ‌a bearish ⁠USD," he said, adding the bank stays neutral and expects a firm but range-bound greenback.

On the data front, yesterday's data showed a measure of prices paid by US services businesses jumped to the highest level in nearly four years last month, cementing economists' views that the Federal Reserve would hold interest rates unchanged well into next ​year.

The Japanese yen fetched 159.92 ​per dollar, off lows ⁠yesterday that pushed it past the critical 160-per-dollar mark for the first time since 30 April, triggering action from authorities.

The 160 level is widely seen in markets ​as a line in the sand for potential official intervention.

Bank of Japan Governor Kazuo ​Ueda cemented a ⁠June rate hike in a clear toward inflation fighting, as the Iran war-driven energy shock sharpens price risks and opens the door to more frequent increases in borrowing costs.

"The hawkish tone has strengthened further, including a clear expression of ⁠concern about ​behind-the-curve risk," wrote Naohiko Baba, head of Japan research and chief ​Japan economist at Barclays. "We stick to our June rate hike call."

Bitcoin hit a four-month trough and was last traded 1.3% lower at $63,984. Ether hit ​its weakest since April 2025 before gaining 0.6% to $1,791.