Agricultural products must be transformed into value-added agro-industrial products in order to transition from an agriculture-based economy to an industrial one, Information and Broadcasting Minister Zahir Uddin Swapan said yesterday. “Achieving this transformation requires the effective integration of technology, innovation, and knowledge,” the minister said at the award ceremony of the Bangladesh Agro-Industry Media Award 2025, organised by Pran-RFL Group, at the MCCI Conference Hall of Police Plaza Concord in Dhaka.

“It will strengthen domestic markets, enhance export competitiveness, and contribute significantly to economic growth,” he also said, adding that investigative journalism can play a crucial role in promoting the development of the agriculture and agro-processing sectors.

“I believe that journalists’ investigative reports will not only inspire entrepreneurs to explore new opportunities but also help the government formulate more effective agriculture- and industry-friendly policies,” he said.

Referring to the government’s development agenda, the minister said, “Our government was elected through a credible electoral process. Before assuming office, Prime Minister Tarique Rahman declared, ‘I have a plan.’ Today, that vision has evolved into ‘We have a plan,’ with agriculture occupying a central place in our national development strategy.”

He also highlighted the government’s decision to waive interest on agricultural loans of up to Tk 10,000 shortly after taking office.

“At a time when the country faces substantial domestic and external debt obligations, along with nearly Tk 600,000 crore in non-performing loans, this initiative carries considerable strategic importance,” he said.

Calling on the media to focus greater attention on the sector, Swapan urged journalists to produce more in-depth reports on the opportunities and challenges facing the agriculture and agro-processing industries.

“Such reporting can contribute to more informed policymaking. As the information minister, I will make every effort to compile these reports and ensure they reach the relevant policymakers,” he added.

Speaking at the event, Pran Group Managing Director Ilias Mridha described agro-processing as one of Bangladesh’s most promising industries.

“In a country where agriculture remains a key pillar of the economy, the agro-processing sector can make an even greater contribution to economic development if supported by the right policies and direction,” he said.

“It also has the potential to emerge as one of the country’s leading export sectors after the ready-made garment industry,” he added.

Mridha said the award aims to encourage journalists to explore and highlight both the opportunities and challenges within Bangladesh’s agro-processing industry.

Among others present at the event were Hasan Hafiz, president of the National Press Club and editor of the Bangla daily Kaler Kantho, and Kamruzzaman Kamal, marketing director of Pran-RFL Group.

In the print media category, awards were given to Sukanta Halder, staff reporter at The Daily Star, and Rafikul Islam and M Munir Hossain of The Daily Sun.

In the television category, the winners were Delowar Hossain Dolon of Channel 24 and Rakib Hossain of Ekattor TV.

In the online media category, the award winners were Nazmul Hossain of Jagonews24.com and Shariful Rukon of Ekusheypatrika.com.

The winners were selected by a three-member jury board based on special reports focusing on the agro-processing sector.

The jury board members were Professor Robaet Ferdous of the Department of Mass Communication and Journalism at the University of Dhaka; Khurshid Ahmad Farhad, general manager of Bombay Sweets & Co Ltd; and Mohammad Touhidul Islam, director of outreach and communication at Transparency International Bangladesh.

Introduced for the first time by Pran Group, the Bangladesh Agro-Industry Media Award aims to recognise journalists whose reporting contributes to greater awareness, innovation, and development within Bangladesh’s agriculture and agro-processing industries.

The government has formed a Tk20,000 crore pre-financing scheme to revive closed industrial and service sector enterprises, aimed at bringing idle units back into operation through liquidity support from banks' surplus funds.

The fund is part of the government's earlier-announced Tk60,000 crore "production and employment revival" stimulus package, designed to restart shuttered factories, revive stalled exports, and generate jobs for unemployed youth through targeted credit support.

A central bank circular yesterday said the pre-financing scheme will run for three years. Borrowers involved in loan default, money laundering, fraud, or misuse of earlier credit facilities will not be eligible.

Banks will pay interest at a rate of 4%, while borrowers will be charged up to 7%. Interests will be waived for the first six months, after which regular repayment will begin.

The maximum loan ceiling under the scheme is Tk200 crore per entity or group. Each loan will have a tenure of up to one year, with renewal possible depending on fund availability and satisfactory repayment performance.

Who can participate

All scheduled banks may participate, but must sign agreements with Bangladesh Bank.

Eligible borrowers include large-scale industrial and service sector entities that are partially or fully shut, or operating below capacity due to working capital shortages.

Export-oriented firms and those with high export potential will receive priority. Investors taking over or leasing closed units to restart operations will also be prioritised.

Before approving loans, banks must assess the actual condition of the enterprise, production capacity, capital needs, and repayment ability. Support is intended only to address working capital gaps, not structural failures caused by mismanagement, or technical inefficiency.

Certification from relevant trade bodies such as the FBCCI, BGMEA, and BKMEA will be required to verify operational capacity. However, banks may also approve loans based on their own due diligence and investigation.

Loan proceeds cannot be used to adjust or repay existing loans. Instead, funds may be used for wages and salaries, utility bills, raw material procurement, execution of export orders, and other production-related costs.

Wage payments must be made through bank accounts or mobile financial services, not in cash. Verification of national identity cards for workers is mandatory. Salary support will be limited to a maximum of four months.

The circular said borrowers identified as loan defaulters, or individuals and entities involved in money laundering, fraud, embezzlement, or misuse of loan funds, will not be eligible.

Recovery, supervision

On recovery and supervision, the circular states that interest or profit on the borrowed funds must be paid quarterly to Bangladesh Bank.

In case of default, funds may be recovered directly from banks' current accounts held with the central bank, along with an additional 2% penalty interest.

Banks will bear full credit risk and remain solely responsible for loan recovery. The central bank will not be linked to recovery from customers under any circumstances. Defaulting borrowers will be treated under existing classification and provisioning rules.

To ensure proper use of funds, banks must submit weekly reports on beneficiary enterprises and conduct quarterly factory inspections. Bangladesh Bank may also carry out on-site inspections at any time.

Any misuse detected during inspection or audit will result in direct recovery from the bank's account, including interest and an additional 2% penalty.

Banks must follow their internal policies for borrower selection, approval, disbursement, documentation, and monitoring. They may take collateral against working capital loans, subject to existing single borrower exposure limits.

Even previously written-off loans may be considered for rescheduling or policy support under specific conditions. Such borrowers will not be classified as defaulters initially but will be recorded as SMA accounts. However, failure to repay six consecutive monthly or two quarterly instalments will result in reclassification as substandard or bad loans.

If fraud, false information, irregularities, or misuse is detected, the borrower's details may be shared with relevant government agencies for legal and punitive action. Disciplinary measures will also be taken against any bank officials found involved.

Bangladesh is expected to learn by September whether it will get additional time before graduating from Least- Developed Country (LDC) status, with United Nations bodies currently reviewing its request for a deferral amid economic challenges and ongoing reform efforts.Economics

The United Nations General Assembly (UNGA) is expected to take the final decision in this regard in September this year, officials said on Thursday.

The country may receive an additional two to two-and-a-half years to prepare for its transition to developing-country status from its current LDC classification, they said.

Officials at the Economic Relations Division (ERD) said the executive body of the United Nations Committee for Development Policy (UNCDP) -- the Economic and Social Council (ECOSOC) -- would determine the deferral request and specify the length of the extended preparatory period.

The decision would then be submitted to the UNGA for final approval, likely at its session in September this year, they added.

"An ECOSOC meeting will be held on 12 June. Bangladesh's issue may not be placed at the immediate next meeting. It could instead be discussed at a meeting in late July. We will then know the specific duration of the LDC graduation deferral," a senior ERD official said.

He said that although the proposed extension period was likely to become clear following the ECOSOC meeting in July, the final decision would require approval by the UN General Assembly.

Bangladesh's fellow graduating LDC, Nepal, has also applied for a two-and-a-half-year deferral of its graduation.

"Since Nepal has requested a two-and-a-half-year extension, the UN may adopt a common approach for both countries. The deferral period could therefore be between two and two-and-a-half years," another ERD official said.

In response to Bangladesh's request for a three-year extension of the preparatory period, the UNCDP, in a letter sent to the ERD Secretary on June 1, expressed a positive view of the request but did not specify any timeframe.

Bangladesh is currently scheduled to graduate from LDC status in November 2026.

Amid global economic shocks, energy supply constraints, domestic political transition and other external challenges, Bangladesh submitted its request to the United Nations more than two months ago, seeking additional time before graduation.

Meanwhile, the UNCDP has attached several conditions to its consideration of Bangladesh's request.Politics

The Committee underscored the importance of domestic reforms, including measures to stabilise the financial sector, strengthen domestic resource mobilisation through higher tax revenue collection, and prioritise expenditures that enhance resilience and support economic transformation.

"Without significantly advancing on such reforms, it is difficult to see how an extension of the preparatory period requested by Bangladesh would contribute to a more sustainable graduation and a smooth transition. Hence, the extension should not be viewed as a pause or justification for delaying reforms," the Committee said.

The Committee advised that any extension should serve as a catalyst for accelerating reforms and implementing smooth transition measures, particularly those aimed at strengthening productive capacities, promoting economic diversification and preparing the private sector for graduation.

It noted that these measures require careful sequencing and sustained attention throughout both the preparatory and post-graduation transition periods.

In its letter to the ERD Secretary dated June 1, the CDP also indicated that a shorter extension of the preparatory period would appear more conducive to ensuring a sustainable graduation process.

Earlier, on Tuesday, the ERD said in a statement that the UNCDP had expressed a "positive position regarding Bangladesh's request to extend its preparatory period for graduation from the LDC category until November 24, 2029".

In its assessment report, however, the CDP noted that Bangladesh's request for a three-year extension was consistent with the approach taken in all five previous cases where graduating countries had received extensions to their preparatory periods.

The Committee acknowledged the heightened uncertainty arising from external shocks and recognised the need for additional time to adjust policies and establish priorities under the Smooth Transition Strategy (STS).

At the same time, it highlighted the risk that, for a country that had met the graduation criteria by a comfortable margin, prolonging its stay in the LDC category could delay the benefits associated with graduation.

The UNCDP has already recommended three countries for graduation from LDC status in 2026 -- Bangladesh, Nepal and Lao PDR.

NCC Bank PLC is targeting diversification, digital transformation and stronger risk management to drive its next phase of growth, said Managing Director and CEO M Shamsul Arefin.

In an interview with The Daily Star on the bank’s 33rd anniversary, he outlined a roadmap centred on expanding SME and retail lending, accelerating digital banking services, strengthening asset quality, embracing artificial intelligence and increasing support for sustainable financing.

The bank began its journey as an investment company in 1985 and operated through 16 branches until 1992. It became a full-fledged private commercial bank in 1993 with a paid-up capital of Tk 39 crore. Today, that figure stands at Tk 1,154 crore. Arefin said the lender’s transformation from a merchant bank into a commercial bank, coupled with its strategic move into larger corporate clients and trade finance, has been instrumental in shaping its growth trajectory.

GROWTH PRIORITIES

“In its early years, the bank focused primarily on SME financing and mid-sized corporate clients, which helped build a loyal customer base and establish a strong customer-centric culture. However, over the last seven to eight years, NCC Bank has strategically repositioned itself by venturing into large-scale corporate clients, export-oriented industries, trade finance, and a broader range of business segments,” he said.

While maintaining its presence in corporate and export-oriented sectors, NCC Bank plans to place greater emphasis on SMEs, retail banking and agriculture to achieve more balanced growth and deepen financial inclusion, he said.

The lender also plans to expand its Islamic banking footprint as demand for shariah-compliant financial services continues to rise.

“The long-term goal is a modern, resilient, customer-focused bank built on strong governance, financial discipline, and sustainable growth,” he said.

DIGITAL TRANSFORMATION

Digitalisation remains central to the bank’s strategy.

“Going forward, NCC Bank will keep investing in digital infrastructure, cybersecurity, data analytics, automation, and customer-facing tech -- enhancing mobile banking, QR payments, virtual services, digital lending, and fintech integrations,” he said.

Artificial intelligence is expected to play a growing role in the bank’s operations.

“As part of its digital roadmap, the bank is exploring gradual integration of AI into areas like customer behaviour analysis, fraud detection, chatbots, predictive analytics, and credit risk monitoring,” he said.

“AI will also strengthen early warning systems and portfolio analysis.”

Meanwhile, the bank is also increasing its focus on green financing, with greater attention to renewable energy projects, energy-efficient industries and environmentally sustainable investments, he said.

STRENGTHENING ASSET QUALITY

Reflecting on the previous year, Arefin said broader economic pressures had affected asset quality across the banking industry.

“In 2024, NCC Bank faced asset quality pressure like the broader industry, with its NPL ratio rising to 7.32 per cent. This was driven mainly by external factors like inflation, energy crisis, forex volatility, liquidity stress, and slower business cash flows,” he said.

“By 2025, however, the bank significantly reduced its NPL to 4.12 percent through stronger recovery drives, improved monitoring, tighter credit underwriting, and better portfolio supervision.”

“The goal is not just to lower the NPL ratio but to build a healthier, more sustainable, and diversified loan portfolio over the medium to long term,” he said.

The lender’s performance remained resilient despite a challenging banking environment. Deposits rose by nearly 17 percent, advances increased by around 10 percent and operating profit grew by almost 18 percent in 2025. Net profit climbed to Tk 476 crore from Tk 437 crore a year earlier.

“Overall, NCC Bank’s 2024-2025 performance underscores strong governance, a customer-centric model, portfolio diversification, and disciplined risk management,” he said.

To keep bad loans under control, the lender is pursuing stricter credit appraisal, enhanced early warning systems, expanded recovery teams and greater use of technology and analytics.

NAVIGATING ECONOMIC HEADWINDS

He noted that many businesses remain cautious amid high inflation, rising interest rates, foreign-exchange volatility, elevated import costs and liquidity pressures.

“Many businesses remain cautious due to some ongoing pressures: high inflation, energy crisis, rising interest rates, forex volatility, import costs, liquidity stress, slower demand, and lower cash flow,” he said. “As a result, business houses are prioritising liquidity and balance sheet stability over expansion.”

Demand has shifted from long-term investment loans towards working-capital and trade-finance facilities, although export-oriented sectors continue to show relatively stable borrowing demand.

On governance, Arefin said the board maintains strategic oversight while management independently handles day-to-day operations.

“The board provides strategic oversight, while management independently handles day-to-day operations within approved risk and compliance frameworks. No undue pressure is exerted on lending or operational decisions -- all credit proposals undergo a rigorous evaluation and multi-level approval process,” he said.

Asked what differentiates NCC Bank from its peers, Arefin highlighted its governance standards, risk management and customer-focused culture.

“NCC Bank stands out for its stability, disciplined banking, customer-centric culture, and over three decades of credibility,” he said.

“It maintains strong governance, compliance, and prudent risk management -- even during sector challenges -- prioritising transparency and accountability over short-term gains.”

Business relief will take center stage in the upcoming national budget, which is expected to introduce a series of measures aimed at removing barriers to doing business, with a strong focus on trade facilitation rather than imposing new taxes.

Proposed reforms on the table include shifting to quarterly VAT return filings instead of monthly, implementing a fully automated VAT registration system, and easier access to fast-track port clearance schemes, according to National Board of Revenue sources involved in the preparations.

Sources said businesses may be allowed to submit VAT returns every three months instead of monthly, while continuing to pay VAT on a monthly basis. This would reduce filing requirements from 12 returns a year to four for around 500,000 businesses that file VAT returns every month.
Infograph: TBS
Infograph: TBS

The budget may also introduce provisions allowing companies using NBR-approved Enterprise Resource Planning (ERP) software to avoid submitting hard copies of VAT returns and audit-related documents.

In addition, online VAT registration could be made fully automated, removing the requirement for approval from VAT officials.

Another major proposal aims to drastically cut customs clearance times at ports. Currently, imported products and chemical samples can only be tested by the Bangladesh Standards and Testing Institution (BSTI) and the Bangladesh Atomic Energy Commission – a bottleneck that routinely drags the process out for two weeks.

Under the proposed changes, testing could also be conducted by any institution accredited by the International Organization for Standardization (ISO) and the Bangladesh Accreditation Board, which officials believe would significantly reduce delays.

The NBR is also considering relaxing the conditions for obtaining Authorised Economic Operator (AEO) licences, allowing more businesses to qualify as trusted traders and enjoy faster customs clearance. Physical examination requirements for AEO licence holders may also be reduced further.

Existing requirements related to declarations and approvals for input-output coefficients – which determine the amount of raw materials used to produce finished goods – may also be eased.

An NBR senior official, speaking on condition of anonymity, said, "There are plans in this budget to simplify areas where trade currently faces obstacles…This will be a budget of 'no imposition, fewer exemptions – only trade facilitation'."

NBR Chairman Abdur Rahman Khan had also assured business leaders in meetings in March and April that the upcoming budget would prioritise removing barriers to business activity.

The NBR is also expected to move away from the widely criticised minimum tax regime. Budget proposals may include provisions allowing refunds of advance taxes or tax deducted at source once taxpayers become eligible for repayment after a specified period.

The finance minister's budget speech may also include a commitment to a more predictable tax regime, with newly announced tax rates for both individual and corporate taxpayers potentially fixed for the next five years.

Business leaders and economists have welcomed the proposed reforms.

Debabrata Roy Chowdhury, director of Nestlé Bangladesh PLC, told The Business Standard, "What we are hearing regarding VAT and customs reforms will genuinely support trade facilitation if implemented.

"It is becoming clear that the government is trying to understand the challenges faced by businesses."

He noted that while monthly VAT return submission may not be a major burden for large companies, it creates difficulties for smaller firms.

"Businesses also have to visit VAT offices with documents, which often involves additional costs. Effective implementation of a paperless system would benefit both businesses and the NBR," he added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), described the proposals as a positive step. "If such measures are announced in the budget, we will welcome them," he said.

"The government has spoken about trade facilitation since taking office. If these proposals are included, it will demonstrate that commitment in practice."

He argued that the current tax collection system puts excessive pressure on businesses. "Businesses will not survive under the present system of tax collection. Investment will not come either," he said.

Former NBR chairman Muhammad Abdul Mazid also backed the proposed reforms. He previously led a committee formed during the interim government's tenure to recommend reforms for the NBR.

"Trade facilitation is essential. There is no alternative," he told TBS. "If ease of doing business cannot be ensured, the economy will not function properly. And if the economy does not function, revenue collection will also suffer."

He said both his committee and subsequent reform bodies had consistently emphasised improving the business environment.

"If these issues receive importance in the budget, it will be positive for both the economy and revenue collection," he said. "Revenue cannot be increased through fear."

Business leaders say the current requirement to submit VAT returns every month forces companies of all sizes to prepare and file large volumes of documentation.

Many believe reducing submissions from 12 to four per year would be a significant improvement, though some, including Mohammad Hatem, argue returns should ultimately be filed annually, similar to income tax.

The NBR-approved ERP system is a business management software solution that centralises data, reduces duplication and improves operational efficiency. Officials say companies using it would no longer need to submit hard-copy documents with VAT returns, supporting the government's paperless administration drive.

At present, even after online submission, businesses are often required to submit physical documents to VAT offices. Officials acknowledge this can create opportunities for harassment and procedural delays due to in-person visits.

Businesses have also long raised concerns over approval processes for input-output coefficients. The budget may simplify both the approval mechanism and conditions for exemption from such declarations.

Faster testing, customs clearance

Under current rules, disputes over classification of imported goods or chemicals often require laboratory testing, which is limited to BSTI and the Bangladesh Atomic Energy Commission.

This frequently results in shipments being sent to Dhaka for testing, causing delays while consignments remain stuck at ports and importers incur demurrage charges.

The proposed reforms would allow testing by any ISO-certified and Bangladesh Accreditation Board (BAB)-accredited institution. Officials expect this to reduce testing time, speed up customs clearance and lower business costs.

The Authorised Economic Operator (AEO) programme, introduced in 2019, allows trusted importers and exporters to move goods directly from ports to warehouses without immediate inspection.

However, despite its intended benefits, only 20 companies have obtained AEO licences in more than six years.

Businesses say eligibility requirements remain too strict, limiting participation. The budget may therefore relax these conditions and reduce the frequency of physical inspections for certified firms.

Businesses call for faster release of consignments

While expanded testing options are welcomed, business leaders argue a more effective solution would be to allow consignments to be released from ports while testing is carried out.

Debabrata Roy Chowdhury said, "When consignments remain at the port while samples are tested, it can take around 15 days to receive the report. Demurrage charges begin after four days."

"Our company alone pays around Tk10 crore in demurrage annually because of such delays."

"If the NBR allows consignments to be cleared while samples are being tested, importers would not have to bear additional demurrage costs. That would be a more effective system."

Mohammad Hatem echoed the view, saying faster release of consignments would significantly reduce costs and improve trade efficiency.

The internet regulator has granted the Chittagong Port Authority (CPA) temporary access to 20 MHz of spectrum in the 3.5 GHz band to test a private 5G network aimed at transforming the Chattogram seaport into a smart port.

Under a decision taken at a Bangladesh Telecommunication Regulatory Commission (BTRC) meeting, the 20 MHz spectrum in the 3780 MHz to 3800 MHz band will be provided free of charge for a three-month trial period ending on 31 August.

The CPA had earlier applied to the regulator for this allocation.

The spectrum will be used to build a private 5G network designed to modernise port operations through high-speed, secure and reliable communications.

According to BTRC application documents, the system will support port automation, remote crane operations, IoT-based logistics management, automated container handling and real-time monitoring of port activities.

BTRC technical teams will monitor and inspect spectrum use and the performance of private 5G applications throughout the trial. After completion, the CPA must submit a detailed report to the regulator on the results
The initiative is part of the “Port Modernisation and Digital Connectivity Enhancement Project” under the Ministry of Shipping.

The CPA also plans to establish a 5G long-term evolution (LTE)-based encrypted communication system within the port to improve operational security, ensure stable connectivity and strengthen data protection.

The network is expected to deliver ultra-low-latency communications for critical logistics operations across the port.

BTRC officials said private 5G networks are still an emerging technology in Bangladesh, although several developed countries already use them commercially in ports, factories, logistics hubs and utilities.

Countries including the United States, Germany and Switzerland have allocated parts of the 3.5 GHz band for private 5G use in smart ports, airports, logistics hubs and industrial automation.

Germany is a leading example, with its regulator reserving the 3.7 GHz to 3.8 GHz band for private industrial 5G networks, enabling standalone systems in ports, factories and airports.

Officials said a dedicated, CPA-controlled communication system is increasingly important given the strategic nature of port operations and the need for secure and reliable connectivity.

The proof-of-concept trial will allow authorities to test the system in a real-world environment before deciding on a permanent CPA-owned network.

As part of future spectrum planning, the BTRC is also considering reserving the upper portion of the 3.5 GHz band for private 5G use in key government institutions and sensitive infrastructure projects, including ports and smart utilities.

Under the proposal, 50 MHz between 3310 MHz and 3360 MHz may be reserved for law enforcement and security agencies, while 400 MHz would be allocated to mobile operators for commercial 5G services. A further 40 MHz between 3760 MHz and 3800 MHz would be set aside for private 5G networks.

According to the BTRC spectrum roadmap, around 460 MHz in the 3.5 GHz band is expected to be opened for international mobile telecommunications services in 2027.

The final price for 3.5 GHz spectrum in Bangladesh has not yet been fixed, although a recent auction in Pakistan set a base price of around $0.65 million per MHz.

The commission said that if spectrum prices are later set, the CPA would need to pay the required charges for the test-and-trial period before any permanent commercial allocation.

Under the approval conditions, the CPA must also obtain prior permission from the BTRC before importing or installing any radio equipment for the trial.

BTRC technical teams will monitor and inspect spectrum use and the performance of private 5G applications throughout the trial. After completion, the CPA must submit a detailed report to the regulator on the results.

The allocation was approved under the Bangladesh Telecommunication Act, 2001 (amended in 2026), which allows the commission to support the introduction, research and testing of new technologies, said BTRC Chairman Md Emdad ul Bari.

“As this spectrum band is being used globally for IoT, industry development, public infrastructure and individual use, we have allowed it on a trial basis,” he added.

He also said the new regulation will enable the commission to support experimental deployment and testing of many emerging technologies in the future.

Bangladesh is one of the fastest-growing economies, with expanding trade and GDP growth of around 4 percent. As a major South Asian trading hub, it attracts many foreign companies. While the country aims to become a developed nation by 2041 and continues progress towards the Sustainable Development Goals (SDGs), sustainable advancement requires looking beyond trade and economic indicators. The priority, I believe, should be a stronger focus on human capital development.

Human resources (HR) plays a vital role in corporate success by upholding company values, ensuring legal compliance, managing employees and mitigating risk. Today, HR managers face the challenges of rapid innovation, growing regulatory demands and increasingly complex operations. While compliance and HR are closely linked, they remain distinct functions. Effective coordination between the two is essential to maintain integrity and productivity.

Bangladesh produces around 750,000 graduates each year. National University accounts for about 450,000 of them, yet nearly 70 percent of its curriculum is considered misaligned with industry needs. Meanwhile, the economy generates around 300,000 formal jobs annually. Between 2016 and 2022, 8.7 million jobs were created for the 14 million young people who reached working age during that period. Bangladesh’s labour force stood at around 77 million in 2024, with an employment rate of 61.9 percent.

Most companies hire fewer than 10 employees a year. So, who succeeds in such a competitive environment? The phrase “managers hire attitude, not skills” reflects a hiring philosophy that prioritises mindset, character and coachability over technical ability. Yet 62 percent of employers report that young job applicants are underprepared or unsuitable for the roles they seek. There is also a shortage of skilled managers capable of training new entrants. Experience is often valued more highly than potential. Technology presents another challenge. By 2030, AI and automation could displace 20 percent to 30 percent of jobs in developing countries, including Bangladesh.

Against this backdrop, HR managers need a broad mix of soft skills, technical expertise and HR-specific competencies, as well as opportunities for continuous professional development. Recent global workforce and HR reports show that about 90 percent of executives plan to maintain or increase investment in upskilling, reskilling and workforce development in response to AI and labour market transformation. This reflects a strong commitment to learning and development.

These capabilities should be embedded in current and future managers through training and professional development and should also be considered during recruitment. Analytical thinking, active learning, problem-solving, stress tolerance, adaptability, social influence and leadership are essential qualities for HR and compliance professionals. Equally important is the ability to use technology effectively and navigate increasingly digital workplaces.

Empathy and emotional intelligence are also critical. HR professionals must respond effectively to unexpected situations, maintain discretion, uphold ethical standards and manage sensitive matters responsibly. Empathy and compassion help create supportive workplaces and strengthen employee engagement. Strong interpersonal communication skills are another key requirement. Effective communication shapes relationships, resolves conflicts and improves organisational performance. Coaching helps employees improve future performance, while counselling addresses emotional and psychological concerns. Both are important tools for supporting people in the workplace.

In Bangladesh, the outdated education system remains one of the greatest barriers to meeting the demands of a rapidly evolving job market. We continue to rely heavily on methods established nearly a century ago, particularly memorisation-based learning. If we want to compete globally, education reform must be the starting point. Competition today extends far beyond local industries. The global marketplace is the real arena. Adapting to change will help us remain competitive, but embracing change proactively will enable us not only to keep pace but also to lead with confidence in a rapidly evolving world.

The government is preparing to submit a three-year reform roadmap to the United Nations in a final effort to secure a postponement of Bangladesh's graduation from the least developed country (LDC) category until November 2029, despite a UN committee recommending a "shorter" extension.

A high-level meeting chaired by Finance Minister Amir Khosru Mahmud Chowdhury yesterday (3 June) reviewed and finalised a draft 25-point action plan that will be sent to the UN Committee for Development Policy (CDP) following the national budget announcement.

The reform commitments had already been presented to the CDP during a virtual meeting on 29 April, officials said. The proposed reforms are scheduled to be implemented between 2026 and November 2029 by various ministries and agencies, they said.

Officials said the central strategy hinges on demonstrating visible progress, monitored by a newly proposed oversight committee led by the finance minister, which will meet monthly to evaluate domestic implementation.

A senior official familiar with the discussions, on condition of anonymity, told TBS that the government plans to submit a formal letter to the CDP within the next two weeks outlining its commitments and implementation framework.

"The finance minister is highly committed to these reforms and emphasised during the meeting that they are necessary for the country's economic interests," the official said.

Based on an ERD press release, the country's newspapers yesterday published news that the CDP recommended that the United Nations General Assembly extend Bangladesh's preparatory period for LDC graduation until November 2029. But the CDP actually meant a shorter extension rather than a specific three-year period.

Reform commitments

The draft document, titled "Action Plan for Bangladesh's Preparation for LDC Graduation (2026-2029)," focuses on strengthening macroeconomic stability, financial sector governance, fiscal reforms, business deregulation, export diversification and institutional capacity.

The government has pledged to begin implementing measures to ensure macroeconomic stability from June 2027, with implementation continuing until November 2029. The plan includes stronger coordination between monetary and fiscal policies, regular assessment of demand and supply conditions for essential commodities, and trade policy adjustments to maintain uninterrupted supplies.

Bangladesh will also commit to addressing debt vulnerabilities identified in debt sustainability assessments conducted by the International Monetary Fund and the World Bank.

Financial sector reforms feature prominently in the draft roadmap. The government plans to strengthen Bangladesh Bank's supervisory authority and restore discipline across the financial sector by December 2027. It also intends to conduct annual comprehensive reviews of all commercial banks, covering asset quality, capital adequacy, liquidity, governance and stress testing, with corrective measures taken where necessary.

The reform programme further includes anti-corruption initiatives and governance improvements. The government aims to expand digital public service delivery systems to reduce direct interactions between citizens and officials while strengthening transparency, accountability and parliamentary oversight through November 2029.

Deregulation and tax reforms

Business deregulation is another major pillar of the proposed reforms. By June 2027, the government plans to establish a unified digital application platform covering licences, certificates, approvals and renewals. Licensing procedures will be simplified, provisional licences will be issued within seven days and the validity period of licences and permits will be extended from one year to five years.

The government also intends to make the National Single Window fully operational within the same timeframe.

Under fiscal reforms, state-owned enterprises are expected to become commercially viable by June 2028, with selected entities potentially listed on the stock market. The government has also pledged to broaden the tax base and strengthen transparency and accountability in the collection of fees and non-tax revenues.

Plans include integrating data systems between banks and the Central Depository Bangladesh Limited by June 2028 to facilitate automated reporting of savings and investment information.

Other measures include reducing the discretionary powers of tax officials, fully automating the National Board of Revenue and its commissionerates, limiting tax exemptions and strengthening value-added tax compliance.

To monitor implementation, the government intends to establish a joint government-private sector task force.

Export competitiveness and infrastructure

As part of efforts to diversify exports ahead of graduation, the government plans to provide targeted incentives and policy support to pharmaceuticals, leather, information and communications technology, agro-processing, jute and light engineering industries.

By December 2028, authorities aim to improve central effluent treatment facilities for the tannery sector and operationalise the Active Pharmaceutical Ingredient Park.

The government also intends to reduce logistics costs from 15% to 10% by June 2029 through port modernisation, customs reforms, improved multimodal connectivity and the development of integrated industrial and logistics corridors.

In the energy sector, Bangladesh plans to encourage investment in renewable energy, develop a carbon market policy and expand green financing initiatives.

The draft roadmap also outlines measures to secure Generalised Scheme of Preferences Plus benefits in the European Union after graduation. Bangladesh may additionally seek to conclude free trade agreements with South Korea, Oman, the United Arab Emirates, Hong Kong and New Zealand by 2029.

The government has pledged continued support for exporters seeking to meet standards in major markets, including the European Union, the United States, Japan, South Korea, China and regional trading partners.

A revised Smooth Transition Strategy reflecting current domestic and global realities is expected to be completed by March 2027, while progress on implementation will be reviewed monthly.

What happens next?

According to officials, the CDP's recommendation will now be considered by the United Nations Economic and Social Council (ECOSOC) at its meeting on 22-23 July. ECOSOC is expected to forward the recommendation to the United Nations General Assembly.

If procedural constraints prevent ECOSOC from formally adopting the recommendation, Bangladesh may have to seek approval directly from the General Assembly during its September session.

Experts said a favourable recommendation from ECOSOC would improve Bangladesh's prospects of securing an extension at the General Assembly.

Although Bangladesh has met all three formal graduation criteria, analysts believe the government's request for additional preparation time prompted the CDP to recommend a shorter extension as a special accommodation.

They stressed that commitments alone would not be sufficient. Bangladesh must demonstrate measurable progress on reforms and clearly identify areas where international institutions such as the IMF, the World Bank and the Asian Development Bank are involved.

Several experts described the CDP's recommendation as an exceptional concession rather than a precedent for future requests from other LDCs.

This year, Bangladesh is scheduled to graduate from LDC status alongside Nepal and Laos. However, Nepal has also submitted a letter to the CDP seeking a postponement.

After Prime Minister Tarique Rahman sent a letter to the CDP on 6 April requesting a three-year deferment of Bangladesh's graduation, the committee subsequently decided to recommend a postponement.

At that time, however, the CDP's assessment report on Bangladesh's preparedness for LDC graduation had not yet been completed. As a result, the report was not attached to the resolution sent to the ECOSOC. The assessment will now be forwarded separately to ECOSOC.

Under the CDP's recommendation, ECOSOC may endorse a postponement of one year, two years, or the full three years requested by Bangladesh. The final decision, however, will be taken through a vote at the United Nations General Assembly.

What experts say

Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue and a member of the CDP, said the extension represents a unique opportunity for Bangladesh.

"This is an exceptional opportunity for Bangladesh. The government should quickly communicate its reform commitments and establish a monitorable implementation framework. That could positively influence consideration by both ECOSOC and the UN General Assembly," he said.

He added that LDC graduation should be viewed not only as an economic issue but also as a political commitment that reflects the country's future development trajectory.

Zahid Hussain, a former lead economist at the World Bank's Dhaka office, said the CDP's recommendation was conditional on Bangladesh implementing fiscal, banking and structural reforms to diversify the economy.

"Bangladesh comfortably meets all graduation criteria even after accounting for the adverse factors identified to make the case for deferment," he said.

According to Zahid, the recommendation reflects concerns about the country's capacity to implement its Smooth Transition Strategy amid challenges arising from the Middle East crisis, disruptions to global trade and the country's political transition.

"Two things are clear. First, this is the last extension if it makes it through the next steps. Second, the period of extension will be less than three years," he said.

The economist added that while approval remains uncertain, Bangladesh's prospects of securing an extension have improved significantly.

Bangladesh's stock market extended its winning streak today (3 June), with turnover reaching an eight-month high as investors rushed into distressed and underperforming stocks amid optimism over government support measures and expectations of regulatory reforms.

The rally was driven largely by the government's decision to create a Tk60,000 crore special fund aimed at reopening closed industrial units and supporting financially troubled enterprises.

Investor sentiment was also boosted by discussions over the expected reconstitution of the Bangladesh Securities and Exchange Commission (BSEC), which many market participants believe could pave the way for reforms and help restore confidence in the capital market.

At the close of trading, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) rose 35 points to settle at 5,442. The blue-chip DS30 index gained 7 points to 2,057, while the DSES Shariah Index advanced 10 points to 1,099.

Turnover on the premier bourse climbed to around Tk1,279 crore, the highest daily turnover in the past eight months. The figure was 18.43% higher than the previous trading session, reflecting a notable increase in trading activity and investor participation.

Market breadth remained firmly positive. Of the securities traded on the DSE, 243 advanced, 98 declined and 49 remained unchanged.

Investors said the newly announced government fund has raised expectations that several listed companies suffering from prolonged financial distress and operational disruptions may eventually be able to resume business activities.

As a result, buying interest concentrated on stocks seen as potential beneficiaries of the initiative.

The optimism was particularly evident among distressed and low-priced shares, which dominated the day's gainers' list.

Regent Textile Mills and Prime Finance jumped 10% each, while Sonargaon Textiles gained 9.93%. Meghna Pet Industries rose 9.89%, Bangladesh Industrial Finance advanced 9.76%, Nurani Dyeing added 9.68%, New Line Clothings climbed 9.43%, and Emerald Oil Industries gained 9.18%.

In its daily market review, EBL Securities said the benchmark index reached a three-month high, extending its rally to eight consecutive trading sessions.

The brokerage noted that investor sentiment remained upbeat amid expectations of supportive policy measures for capital market development, encouraging investors to accumulate stocks viewed as attractively valued.
According to the brokerage, buying interest remained broad-based throughout the session, helping sustain the market's upward momentum despite some mild selling pressure.

Sector-wise, the engineering sector dominated trading, accounting for 17.1% of the day's turnover, followed by textiles at 13.4% and pharmaceuticals at 12.7%.

Most sectors ended in positive territory. The services sector led the gainers with a 3.7% rise, followed by paper and printing at 3.2% and financial institutions at 2.9%. The banking sector was the only laggard, declining 0.5%.
The positive sentiment was also reflected at the Chittagong Stock Exchange (CSE). The Selective Categories Index (CSCX) rose 55.9 points, while the All Share Price Index (CASPI) gained 104.8 points.

Analysts, however, cautioned investors against making investment decisions based solely on expectations.

They noted that the sharp gains in many distressed stocks remain largely driven by sentiment rather than fundamentals, and that the longer-term impact will depend on how effectively the government's revival fund is implemented and whether struggling companies can successfully restart operations.

Even so, the latest rally suggests confidence is gradually returning to the market after a prolonged period of weakness.

The International Monetary Fund (IMF) has agreed to Bangladesh’s request for a new loan programme to replace the existing $5.5 billion arrangement, with a staff mission expected to visit Dhaka soon to begin discussions.

In a statement issued yesterday, the international lender said a final decision on the new programme would require approval from its executive board.

“Any new arrangement would need to be based on Bangladesh’s balance-of-payments needs and strong policy commitments anchored by a credible reform agenda, and would be subject to the IMF’s policies and Executive Board approval,” Ivo Krznar, IMF mission chief for Bangladesh, said in the statement.

IMF staff are engaging with the Bangladeshi authorities on their reform agenda and policy priorities as part of the fund’s consideration of possible next steps, he said.

Krznar said the upcoming staff visit would allow the IMF to assess recent economic developments, engage with authorities on policy priorities, and evaluate the outlook and reform challenges.

“Discussions about the parameters of a potential new IMF-supported programme -- including its size and related reform commitments -- would take place in the context of a subsequent program negotiation mission,” he added.

The latest development came after a virtual meeting on May 21 between Finance and Planning Minister Amir Khosru Mahmud Chowdhury and IMF Deputy Managing Director Nigel Clarke.

The two sides discussed Bangladesh’s macroeconomic situation, progress under the ongoing programme, and prospects for future cooperation.

On May 25, the finance minister said the government and the IMF had agreed to a new three-year programme to replace the existing package.

The IMF approved $4.5 billion for Bangladesh in January 2023 under three facilities -- the Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF).

The package was expanded by $800 million in May last year under the interim government, bringing the total to $5.5 billion. Bangladesh has so far received $3.8 billion across five tranches.

The sixth tranche has been pending since November last year, when the IMF suspended discussions and decided to resume talks with the new government after the February election.

Under the previous schedule, the fifth and sixth tranches – together worth $1.3 billion -- were due by June, with a final tranche expected in December.

Discussions on a replacement programme began during the IMF-World Bank Spring Meetings in April. The lender signalled at the time that no further tranches would be released without visible progress on economic reforms. Virtual talks have since continued weekly over the proposed loan amount and accompanying reform conditions.

While noting that the current arrangements have provided an important policy anchor during a very difficult period, Krznar acknowledged that the macroeconomic and political context had changed substantially since it was approved in 2023.

Authorities now face a more complex set of challenges. Banking-sector weaknesses and low revenue mobilisation, he said, underscored the need for a renewed and sustained reform effort.

“The IMF remains a committed partner to Bangladesh in its efforts to secure lasting macroeconomic and financial stability, strengthen resilience, and support strong, inclusive growth,” Krznar said.

The Trump administration on Tuesday (2 June) proposed imposing additional duties of 10% or ​12.5% on imports from 60 economies after determining that their failure to curb trade in ‌goods made with forced labour is unreasonable and restricts US commerce.

The proposal from the US Trade Representative's office (USTR) is the latest finding from a Section 301 unfair trade practices investigation to be released as the Trump administration seeks to ​rebuild its emergency tariffs, which were struck down by a US Supreme Court decision in ​February, Reuters reports.

The USTR said it determined that it would impose 10% duties related to ⁠the forced labour investigation on imports from Canada, Ecuador, the European Union, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, ​Cambodia, El Salvador, Guatemala, Malaysia, Taiwan and Britain.

The trade agency said it would impose additional duties ​of 12.5% on the remaining 45 countries that it investigated.

"The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable," US Trade Representative Jamieson Greer said in a statement. "This creates ​a dynamic where American workers are forced to compete globally on an uneven playing field."

Reacting to the news, Fazlee Shamim Ehsan, executive president of BKMEA and president of the Employers Federation of Bangladesh, told TBS, "There is no justification for imposing this new tariff on Bangladesh, as the country is not among those accused of using forced labour.

"They are trying to use tariffs as a tool. This will ultimately harm the free market economy and the global economy."

The USTR said ​it was also proposing a textile mechanism that would allow for a certain volume of apparel and textile imports ‌to enter the US at a reduced tariff rate, though the duties and volumes were not disclosed, according to the Reuters report.

The announcement comes ahead of the 24 July expiration of a 10% temporary tariff imposed by the Trump administration on 10 February, the day the Supreme Court struck down US President Donald Trump's tariffs under the International ​Economic Emergency Powers Act.

The trade agency ​is also expected to soon unveil the findings of another major Section ​301 probe into ⁠the buildup of excess industrial capacity in 16 trading partners, including China.

The USTR said it would accept public comments on the proposed tariffs and other remedies through 6 July, with a public ​hearing scheduled for 7 July.

Dr Mohammad Abdur Razzaque, the chairman of Research and Policy Integration for Development - RAPID), told TBS, "It is unfortunate that a matter as universally important as the eradication of forced labour is being addressed through a unilateral trade investigation. This approach of the US appears to establish a new benchmark not grounded in any widely accepted international legal obligation."

Bangladesh has long supported international efforts to eliminate forced labour and remains committed to strengthening labour standards and enforcement, he mentioned.

"However, the present USTR proposal raises important conceptual, legal and practical questions that warrant careful consideration, particularly given its potential implications for developing countries and for the broader rules-based trading system," Razzaque added.

Bangladesh should support the objective but challenge the conceptual basis of the USTR framework, he said, adding, there is an important distinction between prohibiting forced labour itself, which is widely recognised under ILO conventions and domestic legal systems, and imposing a dedicated border measure that bans imports allegedly linked to forced labour. Bangladesh can argue that the latter represents one regulatory instrument among several and that its absence should not automatically be regarded as an unreasonable trade practice.

"Bangladesh should pursue a dual-track diplomatic strategy. On one track, we should work with other affected economies, including developing and advanced countries, to argue for proportionality, recognition of alternative regulatory approaches through international consensus, adequate transition periods, etc.

"On the other track, Bangladesh should maintain close bilateral engagement with Washington and present a credible domestic reform roadmap. Such a roadmap could include legal review, customs enforcement improvements, supply-chain due diligence measures, labour-inspection strengthening, and institutional coordination," Razzaque further said.

Bangladesh needs to project itself as reform-oriented and cooperative while avoiding unnecessary concessions or confrontation, he opined.

"It has been a matter of concern that the USTR proposal reflects a growing tendency to use tariff threats to advance regulatory norms that have not been established through multilateral agreement. While combating forced labour is a legitimate and widely shared objective, making market access conditional on a specific US-preferred regulatory model risks weakening the MFN-based trading system and further fragmenting global trade governance," Razzaque concluded.

The government is set to backtrack from its plans to reintroduce a wealth tax and impose a first-ever advance income tax (AIT) on motorcycles and battery-run auto-rickshaws in the upcoming budget for fiscal year 2026-27, according to officials familiar with the matter.

The development follows Prime Minister Tarique Rahman’s directives to scrap the proposed levies, they said.

The planned AIT sparked public backlash and street demonstrations by motorcycle owners and ride-share drivers. Such pressure might have contributed to the reversal, finance ministry officials said. On the wealth tax, officials did not disclose specific reasons for the decision but hinted that political considerations may have played a role.

“We worked extensively on the wealth tax and developed what we believe was one of the most comprehensive proposals aligned with global standards. However, the government did not accept it,” said a senior official of the ministry, requesting anonymity.

The proposed wealth tax had been designed to be calculated on net wealth declared in tax returns, given the difficulties in assessing market values of assets. The National Board of Revenue had also planned to gradually build a system for valuing assets at market prices.

Under the proposal, net wealth up to Tk 4 crore would have been exempt, in line with the existing wealth surcharge threshold. Wealth between Tk 4 crore and Tk 6 crore would have been taxed at 0.25 percent, followed by 0.50 percent on the next Tk 5 crore, 0.75 percent on the subsequent Tk 5 crore, and 1 percent on wealth exceeding Tk 16 crore.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said Bangladesh already has a wealth surcharge in place, but a separate wealth tax could still be justified if its slab structure is carefully designed.

“The government may be taking additional time to study the proposal, particularly its impact on the overall tax burden,” he said.

He noted that the outcome would depend largely on how the slabs are structured and whether further technical refinement is needed.

Rahman observed that while a wealth tax was intended to align with international standards, its rationale is already partly reflected in the existing surcharge system.

He said a surcharge differs structurally from a wealth tax, as it is applied on top of tax liabilities rather than directly on wealth.

The policy expert cautioned that any shift toward a wealth tax must account for the fact that wealth is often accumulated from already-taxed income, and should be designed to avoid discouraging investment or triggering capital flight.

At the same time, he said there is merit in moving toward a more formal and structured wealth taxation framework.

On broader reforms, he stressed the need to expand the tax base and strengthen enforcement, noting that although many taxpayers hold Taxpayer Identification Number (TIN), only about a quarter actually pay taxes.

He also called for greater digitalisation, reduced human interface in tax administration, and improved governance to enhance revenue collection.

AIT on motorcycles, rickshaws

The proposed AIT on motorcycles above 110cc sparked protests outside the NBR last week, with bikers and ride-sharing workers staging demonstrations against the planned measure.

The proposal also drew widespread criticism on social media, with users arguing that motorcycles have become an essential means of daily transportation and livelihood, not merely recreational vehicles.

In response, Prime Minister Rahman first directed that the proposed tax be halved, and later ordered it withdrawn entirely, said officials familiar with the matter.

Owners of motorcycles with engine capacities above 150cc will, however, still be required to obtain a TIN.

The tax authority had also planned to impose AIT on the growing fleet of battery-run auto-rickshaws.

Under that proposal, such vehicles operating in city corporation areas would have faced an annual AIT of Tk 5,000, those in municipal areas Tk 2,000, and those in union parishad areas Tk 1,000.

The government is now expected to drop that proposal as well amid concerns over public backlash, according to officials involved in the process.

The government is moving away from its widely discussed plan to introduce a wealth tax. It may also abandon its proposal to allow the whitening of undisclosed money with indemnity in sectors such as real estate.

In addition, plans to impose taxes on motorcycle owners and battery-powered auto-rickshaws may also be dropped. Instead, the government is considering a one-time tax on higher-capacity motorcycles.

According to finance ministry sources, the decisions were made at a meeting yesterday (3 June) attended by the prime minister, the finance minister and the chairman of the National Board of Revenue (NBR). The finance minister is expected to place the budget proposal in parliament on 11 June.

Speaking to The Business Standard on condition of anonymity, a senior NBR official said, "The prime minister has instructed us not to pursue policies that could create controversy or place additional burdens on ordinary people. As part of that directive, plans to provide indemnity for investing undisclosed money and to impose broad-based taxes on motorcycles and battery-powered auto-rickshaws have been shelved.

"Regarding the wealth tax, the prime minister has asked for an impact analysis before any proposal is finalised. As a result, it is unlikely to be included in the upcoming budget."

He added, "To avoid placing a burden on ordinary people, there may not be a tax on all motorcycles. At the same time, the government does not want to face criticism by allowing black money to be invested with indemnity."

Earlier, NBR Chairman Abdur Rahman Khan had indicated that a wealth tax would be introduced in this year's budget. Sources involved in the budget process had also said that the proposal received preliminary approval at a meeting chaired by the prime minister in May.

Sources further said the government had considered allowing undisclosed money to be invested in sectors such as real estate to stimulate economic activity and boost revenue collection.

However, after reports emerged about plans to tax motorcycles, a group of bikers staged a protest in front of the NBR headquarters in Agargaon. Economists and several civil society platforms also voiced opposition to proposals that would allow black money to be invested with indemnity.

The government has now decided to retreat from those plans.

Dr Syed Md Aminul Karim, former NBR member of the Income Tax Policy Wing, believes it would not be justified to abandon the wealth tax proposal.

He told TBS, "A wealth tax could have been a useful tool both for raising revenue and reducing inequality. The government may be stepping back because of concerns over public reaction."

He also said there should be a mechanism to bring the large volume of money outside the formal economy into productive investment.

In his view, the proposed taxes on motorcycles and battery-powered auto-rickshaws were also reasonable.

However, Snehasish Barua, an income tax expert and managing director of SMAC Advisory Limited, believes that implementing a wealth tax could create inequality, as those who declare their assets would bear the tax burden, while those who conceal assets might escape taxation altogether.

He also warned that valuing assets for wealth tax purposes could be highly complex and may trigger a large number of legal disputes and court cases.

"For that reason, it would not be prudent to implement such a tax without adequate preparation," he said.

Barua added that the government should also examine why countries such as India eventually abandoned wealth taxes after introducing them. "The experiences of those countries and the reasons behind their policy reversals should be taken into consideration before making any decision," he said.

At present, individuals with assets worth more than Tk3 crore are required to pay a surcharge on their income tax at prescribed rates. The NBR had planned to introduce a direct tax on wealth itself, at rates of up to 1% of asset value.

Meanwhile, the existing system already allows undisclosed money to be invested after payment of the applicable tax plus a 10% penalty. However, agencies such as the Anti-Corruption Commission can still question the source of those funds.

The government had initially considered removing the authority of any agency to question the source of such money.

In FY2020-21, the government allowed black money to be invested in any sector by paying a flat 10% tax and granted indemnity from further scrutiny.

More than Tk20 thousand crore was legalised under the scheme that year, generating over Tk2 thousand crore in tax revenue for the government. The policy, however, drew widespread criticism.

The government has increased electricity tariffs by 16.68% at the consumer level in a move aimed at reducing the power sector's mounting subsidy burden, a decision economists, industry leaders and energy analysts warn could fuel inflation, raise business costs and further strain households already grappling with rising living expenses.

The Bangladesh Energy Regulatory Commission (BERC) today (3 June) raised the weighted average retail electricity tariff by Tk1.52 per unit, from Tk9.11 per kilowatt-hour (kWh) to Tk10.63 per kWh.

The new rates will take effect from June's billing cycle.

The regulator also increased the weighted average bulk electricity tariff by 19.85%, or Tk1.39 per unit, from Tk7.00 per kWh to Tk8.39 per kWh.

The increase follows a series of energy price adjustments introduced by the government in recent months as it sought to contain subsidy costs.

Amid pressure on the energy sector stemming from the Iran war, the government raised the prices of four types of fuel oil on 18 April. While prices remained unchanged in May, three of those fuel types were increased again in June, with diesel being the only exception.

Following those fuel price adjustments, discussions intensified over a possible increase in electricity tariffs, culminating in today's decision.

The wholesale electricity tariff was last revised in February 2024, when the average bulk tariff was increased from Tk6.70 per unit to Tk7.40.

Subsidy reduction behind the hike

BERC Chairman Jalal Ahmed said the latest adjustment was necessary to reduce the government's subsidy requirement in the power sector.

According to BERC, the government would need around Tk56,000 crore in power subsidies in fiscal year 2026-27 under the existing tariff structure.

The latest tariff increase is expected to reduce that requirement by about Tk14,200 crore, lowering the subsidy burden to nearly Tk41,000 crore.

"Even after the tariff increase, the government will still have to provide a substantial amount of subsidy," Jalal said while announcing the decision.

Officials at the Power Division said the move was consistent with the government's broader commitment to gradually reduce energy subsidies, a reform recommendation repeatedly highlighted by the International Monetary Fund (IMF).

Several officials familiar with the matter, however, said there had also been pressure to demonstrate progress on subsidy reforms ahead of budget preparations and ongoing discussions with development partners.

Responding to questions about whether external lenders had influenced the decision, the BERC chairman said, "There was no pressure. The decision was taken quickly considering the upcoming budget."

Inflation fears mount

Economists warned that the sharp rise in electricity prices would inevitably raise living costs and add to the cost pressures already facing businesses.

Asked whether BERC had assessed the impact of the tariff increase on inflation and household expenditure, Jalal Ahmed acknowledged that no such evaluation had been conducted. "The price increase will increase people's expenses, but an economic evaluation has not been done. There is an opportunity to do this."

Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), said the increase would have direct consequences for inflation and industrial production costs.

"The tariff hike will certainly contribute to higher inflation and increase the cost of industrial output. However, the current level of subsidy in the power sector is also unsustainable," she said.

She argued that tariff increases alone would not solve the problem and called on the government to address inefficiencies, wastage and governance shortcomings within the sector.

Industry, consumers faces higher power bills

Industrial and commercial consumers have been among the hardest hit by the latest adjustment.

Commercial tariffs have been increased from Tk13.46-16.00 per unit to Tk15.36-18.40 per unit, while small industries will now pay Tk12.73 per unit, up from Tk11.05.

Medium-voltage industrial consumers will pay between Tk12.52 and Tk16.36 per unit, compared with Tk10.94-Tk14.24 previously. High-voltage industrial tariffs have been raised to Tk12.12-Tk15.91 per unit from Tk10.62-Tk13.84.

Shawkat Aziz Russell, president of the BTMA, said the increase would significantly affect the country's export-oriented textile and apparel sector.

"Energy accounts for nearly 30% of total production costs in many textile and spinning units, and this increase in power prices could raise overall production costs by around 10%," he said.

"At a time when manufacturers are already struggling with high interest rates, gas shortages, rising wages and global market uncertainties, this additional burden will further erode the competitiveness of Bangladeshi products in the international market," he added.

"We understand the government's need to mobilise resources ahead of the national budget, but such a sharp tariff hike will have broader consequences for inflation, investment and industrial growth. This decision could prove highly disruptive to the overall economy if not accompanied by structural reforms in the power sector," Russell further said.

Mahmud Hasan Khan, president of the BGMEA, told TBS that businesses were already struggling with higher fuel costs and operational challenges.

"We have asked the government to ensure an uninterrupted power supply. It would have been better if the decision to raise electricity prices had come after that was guaranteed," he said.

Speaking to TBS on the issue, Business Initiative Leading Development Chairperson Abul Kasem Khan said that while Bangladesh is able to produce goods at lower costs than some countries in certain cases, energy costs account for a significant share of production expenses. As a result, an increase in electricity prices directly raises production costs.

"Broadly speaking, there is little we can do – the cost of production will increase. We hope the government will consider the issue and provide some form of support or compensation in other ways. The additional cost could be partially adjusted through tax relief and other measures," he added.

Consumer groups also criticised the decision.

Residential consumers will also face higher bills across all consumption slabs. The lifeline tariff for consumers using up to 50 units a month has been increased from Tk4.63 to Tk5.32 per unit, while households consuming more than 600 units will pay Tk17.35 per unit, up from Tk15.40.

The Consumers Association of Bangladesh expressed deep concern, arguing that higher electricity prices would have a broad economic impact and that consumers would ultimately bear the burden.

In a statement, the organisation's vice-president, SM Nazer Hossain, said the move was difficult to justify at a time when many countries were waiving utility bills for low-income and marginal consumers.

He said that increasing prices in the name of reducing subsidies for small consumers was not acceptable.

Structural reforms needed

On the matter, Shafiqul Alam, lead energy analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), also noted that tariff hikes alone would not resolve the financial challenges facing the power sector.

According to him, structural reforms were essential to reduce dependence on subsidies.

"Addressing overcapacity and capacity payment obligations should be the priority. Tariff increases may provide temporary relief, but they will not resolve the underlying causes of the subsidy burden," he said.

He warned that continued additions to generation capacity despite sluggish demand growth could force the Bangladesh Power Development Board to keep making large capacity payments while purchasing less electricity from operational plants, increasing financial pressure on the sector.

Higher transmission charges

BERC has also increased the transmission, or wheeling, charge for Power Grid Bangladesh PLC from Tk0.3135 per kWh to Tk0.3886 per kWh, an increase of Tk0.0751 per unit.

The regulator, however, left retail demand charges unchanged across all consumer categories and retained the existing 0.5% rebate on net electricity bills for prepaid meter users.

The war in the Middle East has dented economic growth prospects worldwide, with a more severe shock likely if no effective ceasefire is agreed before 2027, the OECD warned today (3 June).

Global economic growth is now forecast to slip to 2.8% for 2026 if Gulf exports of oil and gas return to pre-conflict levels in the third quarter, the group of 38 industrialised countries said in its quarterly update.

Previously, the OECD had forecast full-year global growth of 2.9%.

But if the Mideast war continues into next year, global growth could slow to 2.1%, the OECD said -- well below the average annual growth of 3.45% seen from 2013 to 2019, before the Covid pandemic.

"The longer the disruptions last, the larger the economic and social costs become," the group's chief economist Stefano Scarpetta said in the report.

Many countries would risk falling into recession, he noted, and a drop in investment spending -- "including in energy-intensive AI" -- would likely push up unemployment.

Sustained high prices for energy as well as fertiliser and other key products from hydrocarbon production in the Gulf would weigh especially hard on developing countries that have "higher shares of energy and food in household consumption".

Even if the war sparked by US and Israeli strikes on Iran in late February ends in the coming weeks, the OECD forecasts global inflation rising to 4%this year from 3.4% in 2025.

In this "time-limited disruption scenario", the group expects US growth to slow to 2% this year and 1.8% in 2027, after growing 2.1% last year.

In the eurozone, where many countries are highly dependent on energy imports, GDP growth will slump to 0.8% this year after 1.4% last year, assuming a Mideast ceasefire is secured in the coming weeks.

After a strong rebound in April, Bangladesh's export earnings fell again in May by 7.07% year-on-year, according to Export Promotion Bureau (EPB) data released today (3 June).

Exporters attribute the fall mainly to factory closures during the extended Eid holidays and a sustained slowdown in global demand.

In value terms, Bangladesh exported goods worth around $4 billion in May, down from $4.73 billion a year earlier. However, exports rose nearly 10% compared to April, indicating a short-term monthly recovery amid a broader slowdown.

Overall, export earnings in the first 11 months (July-May) of the fiscal 2025-26 fell by 2.55% compared to the same period last year. Total exports stood at $43.80 billion, down from $44.95 billion. Of the 11 months, nine recorded negative growth.

The ready-made garment (RMG) sector, which accounts for over 80% of national export earnings, remained the main drag. In May alone, garment exports fell by 8.29%.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Vice President Shehab Uddin Chowdhury told The Business Standard that Eid holidays disrupted production and shipments.

"Factories remained closed for five to six days at the end of May due to Eid, which reduced shipments," he said, adding that global apparel demand remains weak.

Segment-wise data show knitwear performed worse than woven products. Knitwear exports fell 8.29% in May year-on-year, while over July-May they declined 4.26%, compared to a 2.42% drop in woven exports.

Industry stakeholders say the contraction in knitwear – largely basic apparel items – signals weakening global demand for low-value garments, a segment where Bangladesh has traditionally been strong.

Sparrow Group Managing Director Shovon Islam said the trend reflects a structural shift in demand. "A decline in knitwear exports indicates shrinking demand for basic items globally. To stay competitive, Bangladesh needs to move toward higher-value products, including man-made fibre-based garments," he said.

Outside garments, several major export categories also declined in May: frozen and live fish fell 22%, agricultural products 2.19%, leather and leather goods 13%, other footwear products 7%, and paper products 23%.

Some sectors, however, posted growth. These included home textiles (3.67%), specialised textiles (4.91%), jute and jute goods (8.40%), plastic goods (14.15%), and chemical products (11.65%).

Exporters warned the weak trend may continue into June, although business leaders expect a gradual recovery. "We expect exports to pick up from July," said Shehab Uddin Chowdhury.

The Financial Institutions Division has directed Bangladesh Bank representatives and managing directors of all scheduled banks to take necessary steps to enrol their officers and employees in the Pragati Scheme under the Universal Pension System.

The instruction was issued at a discussion meeting chaired by Nazma Mobarek, secretary of the Financial Institutions Division under the Ministry of Finance, at the Secretariat in Dhaka yesterday.

It was noted at the meeting that the National Pension Authority (NPA) has signed memorandums of understanding (MoUs) with 48 banks and financial institutions, while 24 banks are actively involved in collecting and disbursing pension contributions.

Addressing the meeting, the secretary said separate desks should be set up at all bank branches to increase enrolment in the Universal Pension System.

She also directed banks to display banners in accordance with the MoUs and ensure that marketing officials play an active role in promoting the scheme.

Mobarek further stressed the need to bring all officers and employees of private banks under the Pragati Scheme.

Md Suratuzzaman, executive chairman of the NPA, presented a keynote paper highlighting the progress of the Universal Pension System, the features of the Pragati Scheme and its importance for private-sector workers.

He said around 18 million private-sector workers in Bangladesh lack formal retirement security, unlike government employees who are covered by state pension arrangements. The Pragati Scheme was introduced to address this gap under the Universal Pension System launched in 2023.

The meeting also discussed proposals to introduce a shariah-based pension scheme, extend lifelong pension benefits to nominees and bring outsourced workers under the Pragati Scheme. The Pragati Scheme is designed for private-sector employers and employees.

Under the scheme, employees and employers each contribute 50 percent of the monthly contribution. Monthly contributions range from Tk 1,000 to Tk 15,000, and participants receive lifelong monthly pension benefits after retirement.

The scheme also offers tax incentives, as contributions are eligible for income tax rebates while pension income remains fully tax-free. Upon reaching the age of 60, participants receive up to 30 percent of their accumulated corpus as a one-time gratuity payment. The scheme is backed by government-guaranteed investments.

As of May 30, 2026, a total of 3,77,930 people had registered under the four pension schemes, with deposits reaching about Tk 260 crore and investments standing at Tk 286 crore.

The Cabinet Committee on Government Purchase has recommended separate proposals to import five liquefied natural gas (LNG) cargoes to meet the country's fuel requirements.

Among the proposals was the purchase of two LNG cargoes from SOCAR Trading SA of Switzerland under a direct procurement process for 2026. The proposal was placed by the Energy and Mineral Resources Division.

Under the proposal, the LNG will be purchased at a price linked to the JKM benchmark, with a premium of $0.25 per million British thermal units (MMBTU).

The committee also recommended another proposal for the purchase of three LNG cargoes through the international Request for Quotation (RFQ) process under the Public Procurement Rules 2025.

The cargoes are scheduled for delivery during three separate windows: June 26-27, June 30-July 1, and July 6-7 this year.

Under the RFQ process, BP Singapore Pte Ltd was selected to supply one cargo, while TotalEnergies Gas & Power Ltd, UK, was selected to supply two cargoes.

The government will spend over Tk 2,372 crore for the three cargoes.

The recommendations came at the cabinet committee's 24th meeting of 2026, held on June 3, according to a press briefing released after the meeting.

A total of seven proposals were placed before the committee for discussion.

Qatar is a long-term supplier of LNG to Bangladesh, and it ships a large amount of LNG through the Strait, which accounts for roughly a fifth of global LNG flows.

Bangladesh meets nearly 30 percent of its gas demand through imported LNG, while domestic output continues to fall short of the total requirement of about 2,650 mmcfd (million cubic feet per day), according to energy ministry data.

LNG prices have nearly doubled compared with the pre-war level of around $10–12 per MMBtu.

The global economic outlook hinges on how long the war in the Middle East lasts, with recession in some countries and sharply higher inflation a real possibility if it drags on into next year, the Organisation for Economic Co-operation and Development warned on Wednesday.

If the conflict proves short-lived, Gulf oil and gas production could gradually return to pre-crisis levels from the third quarter with shortages confined to Asia and cushioned by strategic reserves and shipments from other producers.

If energy disruption persists well into next year, global growth could slow sharply to 2.1 percent in 2026 and 1.8 percent in 2027 - rates rarely seen outside major crises such as the 2008 to 2009 financial crash or the COVID pandemic.

Some economies could fall into outright recession, with Asian countries reliant on Middle East energy supplies expected to be hit hardest.

In the protracted disruption scenario, higher energy prices could add 0.4 percentage points to global inflation in 2026 and 1.3 percentage points in 2027, likely prompting central banks to hike interest rates by 0.5 to 0.75 percentage points in the short term.

In the baseline scenario, the OECD forecast that inflation across G20 economies would peak at 4 percent this year before slowing to 3.1 percent next year with interest rates largely on hold this year and cuts expected next year.

“Around one-third of OECD economies are projected to experience negative real wage growth this year.

Workers in these countries will see their living standards fall, which is the human reality behind the inflation numbers,” OECD Secretary General Mathias Cormann said.

Global trade growth is set to moderate following a strong 2025, though robust demand for AI-related goods and investment, especially in Asia, should provide some support.

In the baseline scenario, stronger energy exports are expected to support US growth, partly offsetting the drag from higher prices on household purchasing power. Growth is projected to ease from 2.1 percent in 2025 to 2.0 percent in 2026 and 1.8 percent in 2027.

In Europe, euro zone growth was seen slowing from 1.4 percent to 0.8 percent this year before rising to 1.2 percent next year as resilient labour markets and higher defence spending help offset government belt-tightening.

In Britain, growth is projected to slow to 0.9 percent this year before recovering to 1.1 percent in 2027 as global trade stabilises and financial conditions ease.

In Asia, China was seen slowing from 5.0 percent growth in 2025 to 4.5 percent in 2026 and 4.3 percent in 2027 with ample energy reserves limiting exposure to oil price spikes. Exports are set to benefit from lower US tariffs and a competitive tech sector, although a property slump remains a drag.

Japan is expected to be among the hardest-hit by trade disruptions linked to the Gulf conflict, with growth slowing from 1.1 percent in 2025 to 0.6 percent in 2026 before edging up to 0.8 percent in 2027, a downgrade from March.

While subsidies will help cushion the energy shock, the OECD said Japan needs a “clear and credible” plan to rein in public finances over the medium term as interest rates rise.

Any new US tariffs on European Union goods on top of the rates agreed last year would be unacceptable, senior EU lawmaker said on Wednesday, ​rejecting US claims the EU was not curbing trade in forced labour ‌goods as “utterly absurd”.

The US Trade Representative’s office on Tuesday proposed imposing additional duties of 10 percent or 12.5 percent on imports from 60 economies, including the European Union, saying investigations showed they failed to curb ​trade in goods made with forced labour.

“The impression is increasingly emerging that a tariff measure is sought first, ​and only then is a suitable legal justification found. The approach here is: ​if it doesn’t fit, make it fit,” he said.

Lange said that at the end of 2024, the ‌European Union adopted the world’s strictest legislation against products made using forced labour and that companies were already preparing for the new requirements to make supply chains more transparent, identify risks and demonstrate that countermeasures are in place.

The European Commission was working on the ​final implementation guidelines ​for authorities and businesses, he said.

“The claim that the EU is not taking sufficient action against forced labour does not stand up to serious scrutiny. ​Anyone who examines the facts knows that the European Union is ​setting global standards in this area,” he said.

“The key question will therefore be whether the proposed additional tariff of ten per cent will exceed the Turnberry agreements,” he said referring to ⁠an agreement ​from July 2025 in which the EU agreed ​to remove tariffs on US goods and Washington agreed to a maximum tariff on most EU goods of ​15 percent.