The Bangladesh Bank today (4 June) purchased $25 million from two commercial banks through an auction, continuing its efforts to absorb excess foreign currency liquidity and strengthen the country's foreign exchange reserves.

With the latest purchase, the central bank has bought a total of $6.42 billion from commercial banks during the current fiscal year.

The dollars were purchased at a rate of Tk122.75 per dollar.

Confirming the development, the central bank spokesperson and Executive Director Arief Hossain Khan said the central bank has so far purchased $101 million through auctions in June.

Bangladesh Bank has been regularly buying dollars from commercial banks amid strong remittance inflows, which have increased the supply of foreign currency in the banking system.

The central bank's dollar purchases are aimed at boosting the country's foreign exchange reserves.

According to the central bank data, expatriates sent a record $3.42 billion in remittances in May, while the country's foreign exchange reserves currently stand above $30 billion.

Garment exports to non-traditional markets declined by 5.95 percent year-on-year to $5.68 billion in the July-May period of the outgoing fiscal year, according to data from the Export Promotion Bureau (EPB) compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday.

Bangladesh considers all markets non-traditional except the United States (US), the European Union (EU), Canada and the United Kingdom (UK).

During the period, garment exports to the EU declined by 4.88 percent to $17.36 billion, while exports to the US decreased by 0.04 percent to $7.03 billion.

However, readymade garment (RMG) shipments to Canada grew slightly by 2.27 percent to $1.23 billion during the period, while exports to the UK fell by 0.50 percent to $4.02 billion.

Overall, Bangladesh’s RMG exports reached $35.31 billion during the July-May period of fiscal year 2025-26, registering a 3.41 percent year-on-year decline.

Among RMG items, knitwear exports declined by 4.26 percent to $18.78 billion, while woven garment exports fell by 2.42 percent to $16.52 billion, according to EPB data.

Economists have advised the central bank governor not to cut the policy rate in the upcoming monetary policy, citing the state of the economy and persistently high inflation.

They said the policy rate should remain unchanged at current 10%, urging the central bank to maintain its current stance until inflation is brought down sustainably.

The views were expressed at a "Monetary Policy Consultation Meeting" held at Bangladesh Bank headquarters in Dhaka today (4 June), where Governor Md Mostaqur Rahman met economists and bankers to discuss the monetary policy outlook for July-December period.

Economists said inflation remains high and controlling it is primarily the responsibility of Bangladesh Bank and lowering the rate would be inappropriate under the circumstances.

Meeting participants said they also cautioned that recent increases in fuel and electricity prices are likely to add further inflationary pressure.

They specifically noted that the recent adjustment in energy prices would have a direct impact on inflation, reinforcing the need for a cautious monetary stance.

The economists also urged the central bank to ensure swift implementation of its Tk60,000 crore stimulus package aimed at boosting production, supporting exports, expanding the private sector, creating jobs and accelerating economic recovery.

They said the funds must be disbursed under strict compliance to avoid irregularities, warning against a repeat of the misuse and corruption seen in pandemic-era disbursements.

They said stronger coordination between monetary and fiscal policy is needed, arguing that interest rate adjustments alone would not be effective without policy alignment. They also said tighter market monitoring is essential for monetary measures to work effectively.

Participants noted that private sector credit growth remains weak, and policy reforms to stimulate business expansion are needed. They also said maintaining confidence in the banking sector is crucial for economic stability, as it remains a key pillar of the economy.

In response, the governor said Bangladesh Bank would continue banking sector reforms. He also said chairpersons and managing directors of merged banks would be appointed soon.

On the foreign exchange market, economists advised careful policy decisions.

They said remittance inflow is satisfactory, but cautioned that future demand for dollars may rise as investment and import activity increase, while remittance may not remain stable.

The cabinet has approved the Foreign Direct Investment (FDI) Incentive Scheme Policy, 2026, aimed at encouraging Bangladeshi citizens, including expatriates, to attract foreign direct investment into the country.

The policy, formulated at the initiative of the Prime Minister's Office, was approved at the ninth cabinet meeting held tonight (4 June), chaired by Prime Minister Tarique Rahman, according to a press release from the Cabinet Division.

The Cabinet Division said the scheme is intended to incentivise Bangladeshi citizens at home and abroad to contribute to bringing FDI into Bangladesh.

The draft policy was originally prepared during the tenure of the interim government. Under that draft, Bangladeshis who successfully attract new foreign direct investment in the form of equity participation would be eligible for a financial incentive.

The draft proposed a 1.5% incentive for bringing new equity-based FDI into Bangladesh through foreign investors. Any Bangladeshi citizen, whether residing in the country or overseas, would be eligible for the incentive.

It also proposed the creation of an initial $7.5 million fund to finance the scheme. The amount represented around 1.25% of Bangladesh's total equity FDI inflow during fiscal year 2023-24, when the country received approximately $600 million in equity-based foreign investment.

According to the draft, a minimum of $1 million in new equity investment would be required to qualify for the incentive. However, the Ministry of Finance had recommended setting the incentive rate at 1% for all eligible investments.

The cabinet also approved the draft Bangladesh Medical University (Amendment) Act, 2026.

The amendment, proposed by the Health Education and Family Welfare Division, seeks to expand the scope of healthcare services, medical education and research at Bangladesh Medical University.

Under the proposed changes, the university will be allowed to establish or participate in both for-profit and non-profit companies or organisations and acquire shares in such entities.

The cabinet said amendments to the Bangladesh Medical University Act, 1998, are necessary to facilitate these provisions and broaden the university's institutional and research capabilities.

Meanwhile, the cabinet also congratulated Khalilur Rahman on his election as president of the 81st session of the United Nations General Assembly (UNGA).

The International Monetary Fund (IMF) has said there is no scope to move forward with its previous loan settlement with Bangladesh following changes in the country's political leadership.

Speaking at a press briefing in Washington on Thursday (4 June), Julie Kozack, director of the Communications Department at the IMF, said both Bangladesh's political and macroeconomic environment have changed, making it necessary to discuss a new financing programme rather than continue under the earlier framework.

She noted that the IMF sees opportunities to work jointly with Bangladesh on future economic priorities and remains committed to supporting the country's inclusive development goals.

Kozack also said these issues would be among the key priorities in discussions with the IMF's new mission in Dhaka, as both sides explore the contours of a possible future programme.

Her remarks come after the Bangladesh government recently decided to move away from the existing loan programme agreed with the previous Awami League administration and seek a new financing arrangement under revised terms.

During a virtual meeting on 21 May between Finance and Planning Minister Amir Khosru Mahmud Chowdhury and IMF Deputy Managing Director Nigel Clarke, Bangladesh proposed negotiating a fresh $5 billion credit package with a more realistic reform timeline.

According to the Ministry of Finance, the government argued that the current IMF programme was designed under a different economic and political context and that subsequent domestic developments and global uncertainties had made implementation of some reform conditions difficult.

The decision follows months of discussions over several IMF-backed reform measures, including the introduction of a uniform 15% VAT rate, the withdrawal of tax exemptions, and the replacement of broad electricity and fertiliser subsidies with targeted cash transfer programmes.

Government officials have said they remain committed to macroeconomic stability and structural reforms but want future reform commitments to be implemented in a manner that reflects Bangladesh's economic realities and policy priorities.

An IMF mission is expected to visit Dhaka in July or August to discuss the size, timeline and conditions of a possible new programme.

Prime Minister’s Adviser on the ministries of Finance and Planning Dr. Rashed Al Mahmud Titumir has said that the government is working on a new economic model aimed at transforming Bangladesh into a one-trillion-dollar economy by 2034, while ensuring that the benefits of growth reach all sections of society under the philosophy of a “Bangladesh for all.”

He made the remarks while addressing a roundtable discussion titled “Budget for a Crisis Moment 2026–27”, where he also emphasized administrative reforms, reduction of bureaucratic complexities, creation of equal opportunities for domestic and export-oriented industries, and the formulation of business-friendly policies to boost investment, BSS reports citing a press release.

He further noted that a Tk 60,000 crore restructuring package is being prepared to revive closed industrial units, alongside broader efforts to strengthen agriculture through improved water resource management, and enhance efficiency in health, education, and grassroots service delivery.

The roundtable was held at the ATM Shamsul Haque Auditorium of the CIRDAP International Conference Centre in Dhaka, organized by the online platform Chaarcha.com.

State Minister for Planning Zonayed Abdur Rahim Saki also attended the event as special guest, said the release.

Speakers included Chairman of Policy Exchange Bangladesh Dr. M. Masrur Reaz, Managing Director of Apex Footwear Syed Nasim Manzur, researcher and rights activist Maha Mirza, former Finance Secretary Muslim Chowdhury, BKMEA President Mohammad Hatem, ICMAB President Kawser Alam, and Dean of the School of Business and Economics at North South University A.K.M. Waresul Karim. The session was moderated by Chaarcha Editor Sohrab Hossain.

During the discussion, speakers stressed the need for comprehensive economic reforms to address inflationary pressure, investment stagnation, employment challenges, and global economic uncertainty.

They called for modernization of tax administration, enhanced productivity in agriculture and industry, strengthened financial sector governance, and long-term policy stability to ensure sustainable economic growth.

In the private sector perspective, Apex Footwear Managing Director Syed Nasim Manzur called for reducing corporate tax rate from 27.5 percent to 20 percent, ensuring a stable tax regime for at least three years, and introducing digital and risk-based audit systems in tax administration.

He also highlighted inefficiencies in airport cargo handling and noted that a large portion of healthcare expenditure in Bangladesh is still borne out-of-pocket by citizens.

Researcher Maha Mirza urged increasing agricultural budget allocation from 5 percent to 10 percent, improving access to modern agricultural machinery, expanding rural procurement centers, and strengthening cold storage facilities to support farmers and reduce post-harvest losses.

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 at Tk27.46 crore.

Economists have suggested continuing the tight monetary-policy stance as the latest power tariff and petroleum product price hikes could heighten inflationary pressure further.

They say although the existing monetary-policy steps are contractionary in nature, the policy is not tight enough to contain inflation as an increased volume of money is being injected into the market through various Bangladesh Bank (BB) instruments.

The observations came at a stakeholders' meeting on Thursday between the Bangladesh Bank and leading economists, senior bankers, and journalists.

The meeting was held before finalising the monetary policy statement for the second half of this calendar year.

The statement will be unveiled on June 30.

A number of people, who attended the closed-door meeting chaired by Bangladesh Bank Governor Md Mostaqur Rahman, told The Financial Express the participating economists called upon the central bank leadership not to ease the existing monetary policy stance under the current macroeconomic situations.

They said easing the stance could take a bigger bite out of people's income by further increasing the inflationary pressure.

An economist said though the prevailing monetary policy stance was still tight as far as a higher policy rate was concerned, the trend of fresh fund injection has been continuing.

At the same time, he said, the government and the banking regulator launched a stimulus package of Tk 600 billion to revive economic activities after months of sluggishness.

"Under such circumstances, the central bank should not think about easing the policy rate, which has been 10 per cent since October 2024. Otherwise, the economy may face further inflationary pressure, which mostly stems from non-monetary factors," he explained.

Another economist said the government had already increased power tariffs and petroleum product prices in phases in less than a month, which would undoubtedly fuel inflation in the coming days.

"If we relax the monetary policy stance right now, it will be disastrous in the context of inflation-battling management," he said.

The economists also suggested the central bank make a foreign exchange strategy considering the future overseas payment pressure as the remittance boom might not continue in the coming months.

As part of the monetary policy stance preparations, the central bank will hold a meeting at its Bogura office tomorrow before holding the monetary policy committee (MPC) meeting on June 21.

Everything in terms of monetary policy measures will be finalised at the June 21 meeting.

Then it is scheduled to be approved by the Bangladesh Bank board of directors on June 25 before being officially announced on June 30.

Bangladesh's salt production fell short of its 2025-26 seasonal target due to prolonged adverse weather conditions, including heavy rainfall, dense fog and intermittent disruptions during the peak harvesting period, according to industry officials.

Data from the Bangladesh Small and Cottage Industries Corporation's (BSCIC) Salt Industry Development Office in Cox's Bazar show the country produced 1.945 million tonnes of salt against a demand target of 2.715 million tonnes, leaving a shortfall of around 7,70,000 tonnes.

The salt production season began on 12 November in Kutubdia and officially concluded on 25 May, spanning 194 days. During this period, around 40,150 farmers cultivated salt across 67,757 acres in coastal areas of Cox's Bazar and Chattogram, recording an average yield of 28.7 tonnes per acre.

BSCIC Deputy General Manager Zafar Iqbal Bhuiyan said weather instability was the dominant challenge throughout the season.

"From late April to early May, continuous rainfall severely affected production. Salt harvesting was halted for nearly 36 days in total during the season. Excess fog and rain caused a significant drop in output," he told The Business Standard.

He added that rainfall on 24 and 25 May further disrupted the final stage of production, while early shutdowns of salt fields also occurred due to the diversion of land for shrimp farming.

Despite the official end of the season, salt production continues in several coastal areas, supported by improved weather conditions and rising temperatures.

Farmers in Cox's Bazar say output has recently increased but profits remain constrained by production costs and volatile prices.

Mozammel Haque, a salt farmer in Pokkhali, said production had picked up again following the return of dry weather. "We are now producing 20 to 30 maunds of salt per kani of land daily."

However, he noted that earnings have not kept pace with costs.

Another farmer, Shahadat Hossain, said: "Production is better now, but we are not getting a fair price compared to expenses."

Jasim Uddin added that salt prices fluctuated sharply during the season, ranging from Tk180 per maund at the beginning to around Tk400 recently, but profit margins remained limited after costs.

Abdul Kader said farmers would only see meaningful returns if prices rise to Tk400–Tk500 per maund.

Salt trader Matiur Rahman said there is no shortage in the market. "Stocks in both fields and mills are sufficient, and supply remains stable," he said.

While BSCIC estimates production at 1.945 million tonnes, the Cox's Bazar Chamber of Commerce and Industry claims output has already exceeded 2.3 million tonnes, suggesting a higher field-level production than official figures indicate.

Chamber spokesperson Abid Ahsan Sagar said discrepancies may exist between field reality and official estimates but the overall supply situation remains stable. "Despite differences in figures, the market is well supplied and national demand can be met," he said

The government has included 1,270 new projects in the Annual Development Programme (ADP) for the upcoming 2026-27 fiscal year budget, State Minister for Planning Zonayed Saki said Saturday.

Speaking at a seminar titled 'Budget 2026-27 in Times of Crisis' organised at CIRDAP, Saki said of the 1,333 ongoing ADP projects, 1,150 will continue in the next fiscal year while the rest will be completed by June, UNB reports.

The new projects were selected from around 1,600 proposals, he said.

He said unlike in the past, projects this time have been planned in a coordinated manner. “Previously, projects were taken in isolation, power plants were built without transmission lines, hospitals without equipment. This time, every project will be implemented in a coordinated way so ordinary people can actually benefit.”

Saki said public investment transparency is a prerequisite for expanding private investment. “Without accountability in public spending, from budgeting to taxation, private investment cannot flourish.”

Criticising past five-year plans, the state minister said those plans lacked any roadmap for implementation. Going forward, the government will design its five-year plan with implementation challenges factored in from the outset, aiming to show tangible results within four and a half years.

He warned that financial waste from poor implementation costs the country more than corruption itself, and said the government is working to minimise project-wise fund wastage.

In the banking sector, Saki said a few vested business groups had colluded with previous Awami League government to devastate the banking system, leaving genuine entrepreneurs to bear the consequences. “Restoring depositor confidence and creating an enabling banking environment for new entrepreneurs remain key challenges.”

The state minister also raised sovereignty concerns over a past decision to hand tax automation work to a country that is a direct commercial competitor of Bangladesh. “Handing over our tax data to a competing nation undermines our sovereignty.”

On energy, Saki said the government is committed to self-sufficiency and is actively pursuing a target of 10,000 megawatts of renewable energy. “The government has already moved away from the previous policy of pricing electricity to benefit import-dependent fuel traders.”

Defending recent hikes in electricity and fuel prices, he said the current government is being transparent about the reasons, something the public was never told before. "There may be criticism, but we have ensured transparency.”

Power Grid Bangladesh PLC is set to see a significant rise in revenue following a decision by the Bangladesh Energy Regulatory Commission (BERC) to increase electricity transmission tariffs, widely known as wheeling charges.

In a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (4 June), the state-run transmission company said the revised tariff will come into effect from the billing month of June 2026.

The new rates reflect an increase of nearly 23–24% across all voltage levels, marking a substantial upward revision in transmission income. Following the disclosure, its share price rose 1.45% to close at Tk35.10.

Power Grid Bangladesh estimates that the tariff revision could increase its annual transmission revenue by around Tk700 crore, although the final impact will depend on overall electricity generation and demand conditions, the disclosure said.

The company generates the bulk of its revenue by transmitting electricity through the national grid to distribution companies. The revised wheeling charges will therefore have a direct impact on its earnings, as these tariffs are paid by distribution utilities for using the transmission network.

Under the new structure, the wheeling charge for 230 kV lines has been raised from Tk0.3057 per kilowatt-hour to Tk0.3789, while the rate for 132 kV has risen to Tk0.3825 from Tk0.3086. Similarly, the 33 kV rate has been increased to Tk0.3897 from Tk0.3184.

Market observers view the development as a positive signal for the company's financial health, as higher wheeling charges are expected to strengthen cash flows and improve earnings stability.

In the first nine months of the current fiscal year, Power Grid reported revenue of Tk2,386 crore - a slight increase - along with a profit of Tk570 crore.

During the same period of the previous fiscal year, its revenue stood at Tk2,218 crore, and the company incurred a loss of Tk31 crore due to foreign currency fluctuations, as it services its foreign loans in foreign currency.

Government high-ups and newly appointed commissioners of the securities regulator have vowed a complete overhaul of the secondary market by addressing key concerns that are hampering market growth.

"Our goal is not just to fix the market but to build it into a regional powerhouse, a goal that is mathematically feasible," said the Prime Minister's special assistant Tanvir Ghani while speaking at a press conference on Thursday.

Alongside him, Nazma Mobarek, secretary of the Financial Institutions Division, also spoke at the briefing held at the office of the Bangladesh Securities and Exchange Commission (BSEC).

Newly appointed BSEC Chairman Masud Khan and three commissioners - Md. Nafeez Al Tarik, Tanvir Habib Rahman and Nahid Mahtab - were also present.

Achieving the target requires resolution of issues regarding mutual funds and issuers, as well as fostering trust among intermediaries.

"We intend to implement self-regulation, which is a standard system in capital markets globally, as much as possible," said Mr Ghani.

He said an economy could not grow by being solely dependent on the banking sector. "The capital market is the only way forward for Bangladesh, and we must introduce a wide variety of financial products."

Mr Ghani also said foreign investors prioritise two things: liquidity and documentation. "They must be able to trust the data they read and compare it with neighbouring countries' using international standards."

FID Secretary Mobarek said the capital market is very important for the economy to be productive.

While the country's capital market has remained constrained for many reasons, long-term financing through banks has dragged them into trouble. At the same time, savings of ordinary people are not being channelled into productive sectors.

"We are all optimistic that the country's capital market will gain momentum," through restoration of discipline by the new commission, Ms Mobarek added.

Newly appointed BSEC Commissioner Nafeez Al Tarik said they took up the responsibility at a time when the market was facing an acute crisis of investor trust.

"We must ask ourselves what kind of capital market new generations would want.

"They are unlikely to want the market of the past; instead, they will seek a technology-dependent, free and fair capital market," said Mr Tarik, adding that the new commission would work toward building that market and seek everyone's cooperation.

Commissioner Nahid Mahtab said one of their most important responsibilities as a regulatory body was to ensure that existing laws and regulations were properly implemented and enforced.

Commissioner Tanvir Habib Rahman said he expected Bangladesh to adopt the best practices of London-based stock markets. "We seek the cooperation of all stakeholders."

The country's premier stock market extended its post-Eid rally last week, with the benchmark DSEX index soaring 210 points to close at a three-month high of 5,475 amid growing investor optimism over planned reforms in the capital market.

The sustained upward trend added Tk11,156 crore to the market capitalisation of the Dhaka Stock Exchange (DSE) in just five trading sessions, driven largely by bargain hunting in undervalued stocks and expectations of regulatory restructuring.

According to the weekly market review by EBL Securities, the market maintained strong momentum throughout the week, with the benchmark index gaining more than 30 points in each trading session.

Despite concerns over recent hikes in fuel and electricity prices, investors remained focused on repeated political commitments to strengthening and developing the capital market, the brokerage said.

Investor sentiment received a further boost in the week's final session following reports of long-awaited reforms to the securities commission. The prospect of appointing experienced and professional individuals to the regulator was viewed as a positive step towards improving market oversight, transparency and integrity, according to EBL Securities.

Trading activity also picked up significantly during the week. Average daily turnover surged 45% to Tk1,156 crore, reflecting renewed investor participation.

The bullish sentiment was mirrored across other market indices. The blue-chip DS30 index advanced 73 points to close at 2,068, while the SME index gained 83 points.

Market breadth remained overwhelmingly positive, with 328 issues advancing against only 49 decliners.

Among sectors, engineering, pharmaceuticals and textiles dominated turnover. Meanwhile, services, paper and cement stocks posted the highest returns, while the jute sector was the only laggard during the week.

On the gainers' list, Sonargaon Textile and Regent Textile led the market with price appreciations of 45% and 35%, respectively.

In terms of turnover, NCC Bank, BRAC Bank and Jamuna Bank emerged as the most actively traded stocks, reflecting strong investor interest in the banking sector.

A slew of business-friendly measures, including tariff cuts on nearly 350 items, may be stipulated in the upcoming national budget in a taxation remodelling by the new government.

In a move to rationalise trade taxes, the National Board of Revenue (NBR) lately plans to reduce customs duty on around 70 items, regulatory duty on 210 items, and supplementary duty on 60 items.

The National Tariff Policy and Trade Facilitation Agreement (TFA) has been followed to rationalise the tariffs, officials say.

Revenue officials say the proposed changes are carefully designed to ensure that local manufacturers do not face undue pressure.

The items under consideration include consumer goods, spices, a wide range of ICT products, such as finished computers, monitors and laptops, as well as solar equipment, fish, meat, and raw materials for electric vehicles (EVs).

Officials say the government aims to bring the import tariffs on ICT products below 10 per cent in the upcoming budget.

A new tariff slab and HS codes are also set to be introduced to facilitate the import of electric vehicles, they add.

Dr. Masrur Reaz, founding chairman of Policy Exchange Bangladesh, says tariff rationalisation has long been a demand of industries dependent on imported raw materials.

"It is a welcome move as high import tariffs have significantly increased production costs for industries," he says.

On EVs, Dr. Reaz notes that facilitating their use would help Bangladesh meet environmental -compliance requirements.

He also points out that many ICT products subject to high import duties are not manufactured in Bangladesh.

"As we move towards a digital economy, the ICT sector should receive policy support to flourish," he adds.

A major change in VAT compliance is also expected, offering relief to businesses from the requirement of filing monthly VAT returns. From the upcoming fiscal year, businesses may be allowed to submit VAT returns on a quarterly basis instead.

In addition, source tax on the local procurement of raw materials is likely to be reduced by one-percentage point.

However, the entire amount of source tax paid would either be adjustable against tax liabilities or refundable for corporate taxpayers.

Businesses would also be allowed to claim refunds for excess taxes paid if they are unable to adjust them over three consecutive tax years. Officials say the shift towards a more business-friendly tax regime follows instructions from the Prime Minister, issued last week.

A senior tax official says a major reshuffle has been made to the NBR's budget proposals following a meeting with the Prime Minister.

"We are moving towards a more predictable tax regime by fixing tax rates for individual and corporate taxpayers for the next five years," he said.

"The government's priority is now trade facilitation rather than revenue collection through aggressive taxation measures," he adds.

Small traders welcome the proposal to introduce quarterly VAT returns as they feel it would reduce compliance burdens.

"Large companies can afford dedicated officials to maintain compliance and submit VAT returns, but that is difficult for small businesses like ours," says Solaiman Parsee, proprietor of Faial and Brothers in Old Dhaka.

The trader, who mainly imports and sells hardware products, says business hubs such as Old Dhaka are still dominated by traders who are more comfortable with manual record-keeping systems.

Speaking to The Financial Express, Metropolitan Chamber of Commerce and Industry (MCCI) President Kamran T. Chowdhury welcomed the move to simplify VAT-return submissions but called for the withdrawal of turnover tax on businesses.

"It is unjust to impose tax on turnover. It goes against the fundamental principles of taxation," he argues.

He also recommends allowing businesses to adjust or claim refunds for excess taxes paid on an annual basis, instead of waiting for three years.

The country's fruit exports have reached a record high in the first 11 months of fiscal year 2025-26, driven by rising demand from expatriate Bangladeshis for mangoes, guavas, jackfruits and other tropical fruits, according to Export Promotion Bureau (EPB) data.

The country earned $123.02 million from fruit exports between July and May of FY26, surpassing the total $67.51 million recorded in the whole of FY25. The figure marks an increase of more than 82% and the highest earnings from fruit exports in recent years.

The sector has recorded rapid growth over the past three fiscal years, with earnings of $29.24 million in FY24 and just $1.06 million in FY23.

Abdul Wahed, president of the Chapainawabganj Chamber of Commerce and Industry, said Bangladeshi fruits are currently exported mainly to the Middle East and European countries with large Bangladeshi expatriate populations.
"Most of our exports cater to expatriate communities. We have yet to penetrate the mainstream international fruit market because our compliance standards, packaging and branding are still not at the level required by global buyers," he said.

Industry stakeholders also attributed the growth to improved compliance with international food safety standards, expansion of export-oriented cultivation, and wider access to overseas markets.

EPB data show that exports under the category "other nuts, fresh or dried" accounted for the bulk of earnings, bringing in $122.18 million during the July-May period, compared to $66.05 million in FY25.

Exports of frozen fruits and nuts also rose to $439,821, while fresh fruit shipments contributed to overall growth.

Exporters said mangoes remain the country's main fruit export during the summer season, particularly in markets among expatriate communities in the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait, the United Kingdom and parts of Europe.

Fresh guavas and jackfruits have also gained popularity due to improved quality and competitive pricing. Demand for pineapples, litchis, bananas and other seasonal fruits has steadily increased.

Bangladeshi fruits are currently exported to destinations including the UAE, Saudi Arabia, Qatar, Oman, Kuwait, Malaysia, Singapore, the United Kingdom and several European Union countries.

EPB Director Kumkum Sultana said fruit cultivation in Bangladesh, particularly in the hill districts, has undergone a significant transformation.

"A fruit revolution is taking place in the hill regions. The scale of cultivation of fruits such as dragon fruit, cashew nuts and coffee is impressive," she said.

She added that targeted infrastructure support could further boost exports.

"If packing sheds, post-harvest treatment facilities and other basic infrastructure are expanded, exporters will be able to take greater advantage of international markets," she said.

EPB Vice Chairman Mohammad Hasan Arif said fruit exports generate high economic value as they rely largely on local raw materials.

"Unlike many other sectors, fruit production does not depend heavily on imported inputs," he said, adding that the EPB is working to encourage more farmers and entrepreneurs to enter export markets.

Industry stakeholders said investments in cold-chain systems, modern packaging facilities and improved post-harvest handling have strengthened product quality and shelf life.

They also pointed to the growing role of private agro-processing firms and contract farming in ensuring a steady supply of export-grade produce.

Logistics remains a challenge

The adoption of vapour heat treatment, pesticide residue monitoring and traceability systems has also improved buyer confidence in strict international markets.

However, exporters said logistics remain a key constraint. High air freight costs, limited cargo space during peak seasons, inadequate refrigerated transport and slow customs clearance continue to hinder growth.

Abdul Wahed said the district exported around 10,000 tonnes of mangoes last year and expects higher volumes this season, but rising freight costs remain a concern.

"Most export-related services, including quarantine certification and packaging facilities, are concentrated in Dhaka. If such facilities were available at the divisional level, it would make exports much easier and more cost-effective," he said.

He added that if freight costs can be reduced and export procedures simplified, fruit exports could grow substantially,

Industry participants expect export earnings to rise further before the end of the fiscal year as the peak mango export season continues.

Most business leaders in Bangladesh are optimistic about their medium-term revenue prospects and domestic economic growth, a survey says.

Half of the Bangladesh CEOs surveyed say they are very or extremely confident about their company's revenue growth over the next three years. The confidence is close to the global average and higher than the responses from Southeast Asia, according to the Bangladesh edition of PricewaterhouseCoopers' (PwC) 29th CEO Survey.

At the same time, nearly three in ten CEOs describe themselves as only moderately confident.

The survey suggests that Artificial intelligence (AI) is increasingly becoming a driver of business growth in Bangladesh, with one in five chief executives saying the technology has boosted company revenues and one in four reporting lower costs.

However, enterprise-wide adoption of AI remains limited.

About 40% of CEOs said their organisations have a clear AI roadmap, while fewer than one in five believe their AI tools have access to all relevant company data.

A lack of formal governance, limited investment and shortages of technical talent continue to hinder wider adoption.

AK Khan and Company Ltd Group CEO Asif Bhuiyan said, "AI at enterprise scale is no longer a side experiment; it is the backbone of how we plan to grow across sectors.

"But to move beyond pilots, Bangladeshi companies like ours must first get the basics right: a clear AI roadmap, the right data infrastructure and governance that works in our context."

PwC surveyed 45 CEOs in Bangladesh between 30 September and 10 November last year.

Impact on jobs

The survey said some junior and mid-level roles are expected to shrink as AI adoption expands, while senior positions are more likely to be augmented rather than replaced.

It highlighted the need for targeted reskilling and workforce transition strategies.

Alongside the growth of AI, Bangladeshi businesses are showing a strong appetite for diversification.

Nearly three-quarters of CEOs said their companies had entered new sectors over the past five years, almost double the global average.

The survey said the trend reflects efforts to reduce concentration risk and tap emerging opportunities in a rapidly changing economic environment.

However, the financial returns from diversification remain modest. Only 15% of CEOs said more than one-fifth of their revenue comes from new sectors, suggesting many companies are still in the early stages of expansion.

The report noted that successful reinvention requires a clear understanding of the capabilities needed to compete in new sectors and careful decisions on whether those capabilities should be developed internally, acquired or accessed through partnerships.

Despite the challenges, the survey found that Bangladeshi CEOs remain optimistic.

Many reported increasing market share and expressed confidence in domestic economic growth despite global uncertainty and inflationary pressures.

The second session of the 13th Jatiya Sangsad, which will serve as its maiden budget session, is set to begin today at 3:00 pm.

President Mohammed Shahabuddin has convened the session under Article 72(1) of the Constitution. The sitting will take place in the parliament chamber at the Jatiya Sangsad Bhaban in Dhaka's Sher-e-Bangla Nagar.

According to the Parliament Secretariat, all necessary preparations have been completed to ensure smooth conduct of the session.

The session is expected to focus primarily on the presentation, discussion and passage of the national budget for the 2026-27 fiscal year, the first of the current government.

In addition to budget-related business, the House may consider several important constitutional amendments in line with recommendations contained in the July Charter.

Ahead of the session, the ruling party held a parliamentary party meeting on Saturday under the chairmanship of Prime Minister and Leader of the House Tarique Rahman to determine its parliamentary strategy.

The meeting, held at the parliament complex, reviewed the performance of seven ministries. Briefing reporters afterwards, Chief Whip Md Nurul Islam said ministers presented reports on their activities over the past month, existing challenges and measures taken to address them.

Regarding the health sector, he said preparations have been strengthened to tackle dengue and preventive measures have been taken nationwide against measles outbreaks. The meeting was also informed that the Health Ministry is taking strict steps to ensure the presence of doctors at the upazila level.

On infrastructure development, the Chief Whip said the Ministry of Road Transport and Bridges had already floated tenders for the construction of 1,000 kilometres of new roads.

"The Prime Minister directed authorities to ensure cost-effective and corruption-free implementation of the projects."

The meeting also reviewed progress in the development of terminals at Chattogram and Mongla seaports and discussed issues related to the Teesta Barrage project.

In the power sector, ministers reported that a significant number of people had been brought under electricity coverage, while some adjustments in electricity tariffs were also under consideration.

Meanwhile, the Dhaka Metropolitan Police (DMP) has imposed restrictions on carrying weapons, explosives and hazardous materials, as well as on all forms of rallies, processions, demonstrations and public gatherings in and around the parliament area during the session.

According to a public notice signed by DMP Commissioner Mosleh Uddin Ahmed, the restrictions took effect from midnight Saturday and cover several key roads surrounding the National Parliament complex and adjacent areas.

"The order will remain in force throughout the parliamentary session."

The budget session is traditionally held in June each year to discuss and approve the national budget. Members of Parliament are expected to participate in extensive debates on the government's economic policies, development priorities and fiscal plans for the upcoming financial year.

The first session of the 13th Parliament began on March 12 and concluded on April 30.

Many Bangladeshis know Alibaba Group as a giant Chinese shopping platform similar to Amazon or AliExpress. So, when they learn that Alibaba already has a growing business in Bangladesh and they visit its website to order products, they are surprised – they find they cannot shop here!

Most products – clothes, electronics or household products – on Alibaba.com are sold in bulk for wholesale buyers, importers, and international sourcing companies.

Instead of online shopping for local buyers, Alibaba connects Bangladeshi factories and suppliers with overseas buyers in more than 190 countries through its global B2B platform.

Company officials said Bangladeshi suppliers generated around $10 million in export business through Alibaba.com last year, selling products ranging from garments and home textiles to jute goods, leather items and agro-products.

The platform currently works with more than 300 Bangladeshi suppliers through four local channel partners. Unlike traditional e-commerce marketplaces, Alibaba.com does not operate warehouses, delivery networks or local shopping services in Bangladesh.

"Bangladesh is primarily a strategic global sourcing hub for Alibaba.com," Wang Qiling Vania, senior channel operation specialist at Alibaba International, told The Business Standard.

The company operates through a "platform-plus-local-partner" model. Alibaba.com provides the digital platform and global buyer network, while local partners handle exporter onboarding, training and support.

Company officials said their local partners include Tradeshi, Meidao, Skytech, and Maximo. Through the platform, Bangladeshi exporters can create online storefronts, display products in multiple languages, receive buyer inquiries and bid for international orders using Alibaba's "Request for Quotation (RFQ)" system.

The company also provides training on digital exports, product presentation, buyer communication and online sales strategies.

Despite its growing activities in Bangladesh, Alibaba.com said it has no immediate plans to launch consumer shopping, delivery services or logistics hubs in the country.

Instead, the company is considering a small representative office in Dhaka to strengthen relations with businesses, trade bodies and policymakers.

"Our investment is mainly human and technological, not infrastructure-heavy," Wang said.

Globally, Alibaba.com is one of the world's largest B2B sourcing platforms and competes with wholesale marketplaces such as Amazon Business and IndiaMART.

The company sees Bangladesh as an important sourcing destination because of its strong manufacturing sector and competitive production costs. However, officials believe the country still lags behind regional competitors in digital exports.

Regulations, banking procedures major challenges

Sonobar Maira, domestic channel manager for Bangladesh at Alibaba International, said Bangladesh's B2B e-export penetration remains below 15%, compared to over 30% in Vietnam and India.

She said foreign exchange regulations and banking procedures are major challenges for small exporters in Bangladesh. "Payment confirmation delays and outdated banking systems often create difficulties for SMEs handling smaller export transactions."

To address the issue, Maira said it is piloting localised payment solutions and discussing partnerships with banks and fintech firms, including bKash.

The initiative aims to simplify cross-border settlements and improve transaction efficiency, especially for small export orders below $1,000, she added.

"We are piloting localised payment solutions in Bangladesh to address foreign exchange and settlement delays," she further said. "The initiative is aimed at strengthening its Trade Assurance services and supporting smaller exporters, subject to regulatory approval."

Long-term goal

Sonobar Maira also reiterated Alibaba's long-term goal of helping more than 1,000 Bangladeshi exporters become digitally active in global markets over the next three years.

The company has recently expanded partnerships with several Bangladeshi business associations, including the Bangladesh China Chamber of Commerce and Industry and the Bangladesh Garment Buying House Association, Bangladesh Garments Manufacturers and Exporters Association ETC. The collaborations include exporter training programmes, onboarding support and buyer matchmaking events.

Maira said digital sourcing platforms are becoming increasingly important as global buyers diversify sourcing destinations and rely more heavily on online procurement systems.

She also warned that Bangladesh will need faster foreign exchange approvals, clearer digital trade regulations and more efficient export payment systems to fully benefit from the rapidly growing global digital commerce market.

The government is planning to exempt individual content creators and freelancers from the existing 7.5 percent source tax in the 2026–27 budget, in a move aimed at supporting the country’s growing digital economy and encouraging online entrepreneurship.

Under the proposal, income earned through digital platforms such as YouTube, Facebook, TikTok and other online channels will no longer be subject to the source tax currently applied to remittances received from abroad, according to officials involved in budget preparations.

“A provision will be incorporated into the Finance Bill 2026 to provide this exemption under the existing source tax framework,” said a finance ministry official, requesting anonymity.

The National Board of Revenue may define a “content creator” as a person who produces content independently, meaning only individuals will qualify under this category. According to an official, media houses or other institutional entities will not be included within this definition.

At present, a 7.5 percent source tax is deducted from income remitted from abroad for services, revenue-sharing arrangements and similar activities under the Income Tax Act 2023.

Finance Minister Amir Khosru Mahmud Chowdhury is expected to formally propose the measure while presenting the national budget in parliament on June 11.

Officials said the proposal has already received in-principle approval from Prime Minister Tarique Rahman at a high-level meeting.

The initiative is part of the government’s wider efforts to promote the information technology and digital services sectors, which have become key sources of jobs, entrepreneurship and foreign exchange earnings.

Officials added that the tax relief is expected to encourage young entrepreneurs, freelancers and digital content creators to expand their activities, while also helping to formalise the country’s fast-growing creator economy.

The move gained momentum after the prime minister recently met content creator Zuel Rana, owner of “Citto Media,” who produces nature-related content on social media. Following the meeting, the creator said the government had assured steps to withdraw the source tax on freelance and content-creation income.

Meanwhile, Dutch-Bangla Bank has formally suspended the deduction of withholding tax on freelance earnings. It also said it has started the process of refunding taxes previously deducted from freelancers’ accounts.

Bangladesh currently has around 500,000 freelancers working in digital services and content creation, making it one of the largest freelance talent pools in the region.

METRO RAIL VAT EXEMPTION LIKELY TO CONTINUE

The government is likely to extend the existing value-added tax (VAT) exemption on fares of the Dhaka metro rail for another year, as the service continues to gain strong popularity since its launch.

The finance minister is expected to include the proposal in the upcoming budget. The current exemption is set to expire in June this year.

Dhaka metro rail began commercial operations in late December 2022 and quickly became popular among commuters, especially office workers and students seeking relief from crowded and congested bus travel.

Since its launch, the government has maintained tax exemptions on metro rail fares. Around 3.5 lakh passengers now use the service daily.

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 May 28.

Chapman said that if inventory levels get much lower, dated Brent, which is used to price more than 60 percent 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.

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.

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.