China urged the Group of Seven to abide by market economy principles and international economic and trade rules and stop undermining the global trade order on Thursday, responding to the bloc’s latest joint statement that calls for reducing reliance on China for critical minerals and rare earths.

Foreign Ministry spokesman Lin Jian made the remarks at a regular press briefing. China’s position on safeguarding the stability and security of critical minerals and the global industrial and supply chains remains unchanged, Lin said. All parties share the responsibility to play a constructive role in this regard, he added.

He noted that China’s efforts to standardize and improve its export control system are consistent with internationally accepted practices and are intended to better safeguard world peace and regional stability and fulfill non-proliferation obligations.

“We urge the G7 to earnestly abide by market economy principles and international economic and trade rules, and stop using the rules of small exclusive circles to disrupt the international economic and trade order,” Lin said.

Shares of Beximco Pharmaceuticals gained 8 percent over the last two trading sessions on the Dhaka Stock Exchange (DSE), closing at Tk 145.3 yesterday, following reports that the company may be delisted from the London Stock Exchange.

Investors and brokers view potential efforts to prevent the delisting as a positive development, believing they could help resolve the issues that have weighed on the company’s shares since the filing of a petition challenging the appointment of independent directors to its board.

Although the drug maker’s business performance remained strong, its stock came under pressure due to the absence of financial disclosures.

The issue dates back to 2024, when the Bangladesh Securities and Exchange Commission (BSEC) appointed nine independent directors to Beximco Pharmaceuticals following a directive from the finance ministry.

The company subsequently filed a petition with the High Court challenging the decision. Since then, the board has not met to approve or discuss financial results, and the company has not published quarterly earnings reports or annual financial statements.

The lack of financial disclosures led to the suspension of trading in the company’s global depositary receipts (GDRs) on the Alternative Investment Market (AIM) of the London Stock Exchange on January 2.

The suspension was imposed after Beximco Pharmaceuticals failed to publish its audited annual report and accounts for the financial year ended June 30, 2025, by the AIM deadline of December 31, 2025, as well as subsequent financial disclosures.

Under Rule 19 of the AIM Rules for Companies, an AIM-listed issuer must publish its audited annual report and accounts within six months of the end of its financial year.

Under Rule 41, if securities remain suspended from trading for a continuous period of six months, the London Stock Exchange will generally cancel their admission to trading unless the underlying issues are resolved.

The Bangladesh Securities and Exchange Commission (BSEC) has urged the Dhaka Stock Exchange (DSE) to strengthen real-time market surveillance and regulatory controls to prevent market manipulation and protect investors' interests.

The call came during a meeting between BSEC officials and the DSE surveillance team at the commission's office today (21 June), where the two sides discussed measures to modernise the capital market surveillance system and improve market oversight, a BSEC press release says.

The meeting was attended by BSEC Acting Chairman Tanwir Habib Rahman, commissioners Nahid Mahtab and Md Nafiz Al Tariq, as well as senior officials from the commission's surveillance department. DSE Managing Director Nuzhat Anwar and Acting Chief Regulatory Officer Mohammad Shafiqul Islam Bhuiyan represented the stock exchange.

According to the release, discussions focused on the development and modernisation of the capital market, enhancing transparency, and preventing irregularities and manipulation to safeguard investors.

The DSE briefed the commission on recent measures it has taken to curb market manipulation. The stock exchange said it has been temporarily halting trading in shares of companies when unusual price movements or trading patterns are detected.

BSEC assured the exchange of its support in building a transparent, accountable and effective capital market.

The commission also advised the DSE to adopt international best practices in market oversight, including real-time surveillance systems and other necessary regulatory measures to deter manipulation.

Recently, the DSE suspended trading in shares of Shyampur Sugar Mills and Sonargaon Textiles following sharp and unusual price increases. Trading in both stocks resumed the following day after the temporary suspension was lifted.

Creating large banks which can operate across Europe is desirable for sustaining the continent’s financial system, the European Central Bank’s chief economist said Friday.

“Having a banking system that is too localised and, in turn, too intertwined with its domestic sovereign, is not a good recipe,” Philip Lane told a conference organised by French investment bank Natixis in Paris.

“From a macro point of view, it’s very important to have the risk sharing that comes from cross-border banking. That can be in terms of equity ownership, it can be in terms of funding, it can be in terms of common technology,” Lane added.

He was speaking as Italy’s second-largest bank, UniCredit, targets a hostile takeover of German rival Commerzbank, having launched a bid in May which expired Tuesday. The Italians’ longer-term aim is to merge Commerzbank with Germany’s HypoVereinsbank, owned by UniCredit.

The Milan-based bank made a bid valued at 35 billion euros ($40.6 billion) not just to take control of a rival in a fellow EU state but to cement its status as a European heavyweight.

Lane said if banks are unable to achieve mergers, they must seek other ways to reduce costs and risks in a period of rising fixed expenditure, amid the growing need for expensive cybersecurity systems.

Lane said he foresaw a relatively small number of giant banks in Europe and noted the arrival of purely digital banking players to the market, disrupting traditional banking models.

Established players must respond to this process by offering competitive products, embracing technological change along the way, he said.

Chinese Ambassador to Bangladesh Yao Wen has said with the tide at full swell and the wind in their sails, Prime Minister Tarique Rahman's official visit to China (23-26 June) holds "historic significance" and it will surely draw a "more magnificent blueprint" for the development of Bangladesh-China relations.

"Under the strategic guidance of the leaders of both countries, China-Bangladesh relations will forge ahead with more solid political mutual trust, more in-depth practical cooperation, and more robust international collaboration," he said ahead of the visit.

At the invitation of Li Qiang, Premier of the State Council of the People's Republic of China, Prime Minister Tarique Rahman is about to embark on an official visit to China and attend The World Economic Forum's 17th Annual Meeting of the New Champions (2026 Summer Davos Forum).
"On the journey of addressing global challenges, China and Bangladesh will always support each other and move forward hand in hand, making new and greater contributions to the stability and development of both countries, to the prosperity and progress of Asia, and to building a community with a shared future for humanity," said the Chinese ambassador.

During Prime Minister Tarique Rahman's visit to China, the leaders of the two countries will have in-depth exchanges of views on international and regional issues of mutual interest, further coordinate positions and build consensus.

China firmly believes that a "stable, prosperous and confident Bangladesh" will play a more active and constructive role in Global South affairs.

"Let us look forward to the full success of the visit and to the long-standing friendship between China and Bangladesh shining with even greater brilliance in the new era," said Ambassador Yao.

Looking ahead, he said, as China-Bangladesh relations stand at a new starting point that builds on past achievements and opens up new prospects, they are full of confidence and expectations.

On the political front, he said high-level exchanges and party-to-party exchanges between the two countries will become more frequent and in-depth, and political mutual trust will continue to reach new heights.

On the economic front, the ambassador said practical cooperation in areas such as the green economy, investment and business development will continue to expand, bringing more tangible benefits to the two peoples.

On the front of people-to-people exchanges, he said cooperation in education, culture, tourism, youth and other fields will become more vibrant and diverse, allowing the flower of China-Bangladesh friendship to bloom ever more brilliantly in the hearts of the two peoples.

At this important moment when Bangladesh and China are ushering in the next golden 50 years of diplomatic relations, he said in an article that prime minister's first visit to China holds historic significance in building on past achievements and charting the way forward.

This visit will surely inject strong impetus into the development of Bangladesh-China relations in the coming period and promote the upgrading of the Comprehensive Strategic Cooperative Partnership in both quality and substance, he said.

More Solid Political Mutual Trust

China maintains that all countries, regardless of size, strength or wealth, are equal members of the international community and have equal rights to participate in international affairs.

China firmly follows the principle of amity, sincerity, mutual benefit and inclusiveness on neighborhood diplomacy, and remains committed to non-interference in other countries' internal affairs and to providing support without any political strings attached.

"This vision has been fully reflected in China-Bangladesh relations," said the ambassador.

On 4 October 1975, Bangladesh and China officially established diplomatic relations, ushering in a new era of friendly exchanges.

In January 1977, Ziaur Rahman paid his first visit to China in his capacity as Chief Martial Law Administrator and Chief of Army Staff of Bangladesh.

China clearly expressed its support for Bangladesh in safeguarding national independence, laying a solid foundation for the development of bilateral relations.

Begum Khaleda Zia visited China nine times, including five visits as prime minister.

"Frequent high-level exchanges between the two sides have provided strong political guidance for the steady development of bilateral relations," said Ambassador Yao.

Over the past half century, regardless of changes in the international landscape, China and Bangladesh have always respected each other, treated each other as equals, and shown mutual understanding and support on issues concerning each other's core interests and major concerns, he said.

The two countries have become a vivid example of friendly cooperation and mutual benefit between developing countries.

"Prime Minister Tarique Rahman's visit to China at the beginning of his tenure fully demonstrates the high importance Bangladesh attaches to developing relations with China, and reflects the profound foundation of political mutual trust between the two countries," said the envoy.

At present, both Bangladesh and China are at critical stages of their respective national development, and both face difficulties and challenges on the way forward.

The year 2026 marks the beginning of China's 15th Five-Year Plan period.

China is advancing Chinese modernization on all fronts and forging ahead toward the strategic goal of building itself into a great modern socialist country in all respects.

Since its establishment, the new Bangladeshi government has taken a series of measures to maintain unity and stability, improve the economy and people's livelihoods, promote investment and employment, and move toward the goal of building a trillion-dollar economy by 2034.

"These efforts demonstrate its resolve to rise to challenges and press ahead with determination," said Ambassador Yao.

It is precisely because of such shared circumstances and shared aspirations that China and Bangladesh need more than ever to learn from each other and move forward together, he said.

During this visit, the leaders of the two countries will have in-depth exchanges on governance experience and share insights on major issues such as development, economic transformation and reform, further strengthen party-to-party exchanges, and promote more frequent high-level interactions and deeper strategic communication.

"It can be expected that, as exchanges on governance experience continue to deepen, political mutual trust between China and Bangladesh will become even stronger, and bilateral relations will continue to make steady and sustained progress," the ambassador said.

More In-depth Practical Cooperation

Economic and trade cooperation has always been the ballast and propeller of China-Bangladesh relations.

From 2010 to 2025, China remained Bangladesh's largest trading partner for 16 consecutive years.

China has also granted zero-tariff treatment to 100 percent of taxable items for Bangladeshi products exported to China and extended this treatment to 2028.

In the field of investment, China has become Bangladesh's second-largest source of investment.

Nearly 700 Chinese enterprises are registered with Bangladesh's investment authorities, covering a wide range of sectors including energy, transportation, textiles and garments, and information and communications, creating hundreds of thousands of jobs for local communities.

"China has become an indispensable and important development partner in Bangladesh's pursuit of development, economic transformation and modernization," said Ambassador Yao.

Prime Minister Tarique Rahman's visit will inject stronger momentum into Bangladesh-China economic and trade cooperation, he said.

The two sides will have in-depth discussions on expanding bilateral trade and optimizing the trade structure, and promote the entry of more high-quality Bangladeshi products into the Chinese market.

They will further deepen investment cooperation, accelerate project implementation, and attract more Chinese enterprises to invest and do business in Bangladesh.

They will also expand practical cooperation in emerging areas such as scientific and technological innovation, information and communications, green development and artificial intelligence.

"It is reasonable to believe that China-Bangladesh economic and trade cooperation will move toward higher quality and greater depth," said the ambassador.

China-Bangladesh friendship has long taken root in the hearts of the two peoples.

China has always acted with a sense of responsibility as a major country and carried out a series of livelihood projects in Bangladesh that benefit thousands of households.

China-contracted power projects in Bangladesh, including coal-fired, solar and wind power projects, have reached a total installed capacity of over one gigawatt, providing a continuous source of power for Bangladesh's livelihood development and people's daily lives.

China has donated advanced medical equipment to Bangladesh, including physiotherapy and rehabilitation equipment, ventilators and mobile surgical vehicles, contributing China's strength to protecting the health of the Bangladeshi people.

In the face of floods, China promptly extended a helping hand and provided Bangladesh with emergency relief supplies such as rubber boats, life jackets and generators.

"These concrete actions have brought the warmth of China-Bangladesh friendship to countless places in need. It can be expected that this visit will take livelihood cooperation between the two countries to a new level and bring the hearts of the two peoples even closer," said the Chinese envoy.

At the same time, personnel exchanges between the two countries are becoming increasingly frequent, and cultural exchanges and mutual learning are deepening.

Standing at a new starting point, this visit will open broader space for people-to-people exchanges between the two countries.

The two sides will promote cooperation in education, health and skills training, and help Bangladesh cultivate more professional talent suited to the needs of modernization.

They will deepen exchanges in media, film and television, and other areas, so that the two peoples can enhance mutual understanding and deepen friendship through more diverse interactions.

"It can be expected that the hearts of the two peoples will draw ever closer, and the future of China-Bangladesh friendship will be even brighter," he said.

More Robust International Coordination

As the world's largest developing country, the envoy said China has always been a natural member of the Global South and has always shared the same breath and destiny with fellow developing countries.

President Xi Jinping has on many occasions emphasized the importance of strengthening solidarity and cooperation among Global South countries and safeguarding their common interests.

He has called for pooling the strength of Global South countries in the spirit of equality, openness, transparency and inclusiveness, and promoting the reform of the global governance system in a more just and equitable direction.

At present, the world is undergoing accelerated changes unseen in a century.

Unilateralism, hegemonism and bullying practices are growing more rampant, and the cause of global peace and development faces severe challenges.

The more difficult the situation becomes, the more countries that uphold justice should stand together to jointly safeguard the legitimate rights and interests of developing countries and maintain world peace and stability.

Bangladesh is the second-largest economy in South Asia and has an important voice on global issues such as climate change, sustainable development and poverty reduction.

Recently, Bangladesh has won the presidency of the 81st session of the United Nations General Assembly.

"China has always deemed Bangladesh as an important partner in the Global South, and stands ready to work closely with Bangladesh in multilateral institutions such as the United Nations and the World Trade Organization to promote reform of the global governance system and jointly safeguard the collective interests of developing countries," said Ambassador Yao.

The government plans to borrow $2.8 billion from the International Islamic Trade Finance Corporation (ITFC) to finance imports of fuel oil, liquefied natural gas (LNG) and fertiliser in fiscal year 2026-27.

To this end, Bangladesh Petroleum Corporation (BPC) stressed that ITFC reduces its financing markup and the deal allows letters of credit (LCs) to be opened through any Bangladeshi bank. The corporation also proposed provisions allowing Bangladesh to import oil and gas from any energy-rich country, including but not limited to member states of the Islamic Development Bank (IsDB), in order to strengthen energy security and meet emergency requirements.

According to officials at the Economic Relations Division (ERD), negotiations on the financing proposal will take place during the Annual Financing Plan Meeting (FY2026-27) scheduled for 21-24 June in Jeddah, Saudi Arabia. The final financing amount is also expected to be determined during the meeting.

The Bangladesh delegation will be led by ERD Secretary Shahriar Kader Siddiky, Energy and Mineral Resources Division Secretary Mohammad Saiful Islam, and Agriculture Secretary Dr Rafiqul I Mohamed.

Proposed financing breakdown

According to ERD sources, a preparatory meeting held on 4 June decided on borrowing of $2.01 billion for fuel oil imports by BPC, $600 million for LNG imports by Petrobangla, and $200 million for fertiliser imports by the Bangladesh Agricultural Development Corporation (BADC).

BPC informed the meeting that its financing requirement for fuel imports in the current fiscal year was $1.65 billion, of which $700 million has already been disbursed. Due to rising global oil prices, the corporation requested a higher financing ceiling for the next fiscal year.

The meeting also decided to conduct a comparative analysis of fuel procured through ITFC financing and fuel purchased directly from the spot market to strengthen Bangladesh's negotiating position.

Petrobangla officials said the company had largely avoided excessive borrowing during FY2025-26 thanks to a relatively stable economy, continued remittance inflows and adjustments to domestic gas prices.

However, the conflict involving Iran has disrupted LNG shipments through the Strait of Hormuz, one of the world's most important energy transit routes.

As a result, Petrobangla plans to utilise the full $600 million financing facility available under existing agreements.

According to its FY2026-27 plan, major long-term suppliers, including QatarEnergy, OQ Trading Limited and Excelerate Gas Marketing Limited Partnership, have declared force majeure until June 2026, increasing Bangladesh's dependence on alternative sources and spot-market purchases.

Petrobangla expects to use financing for at least two LNG cargo purchases in June 2026 and plans extensive utilisation of the remaining balances under its existing financing agreements.

BADC seeks fertiliser financing flexibility

ERD sources said ITFC had planned a $500 million financing package for BADC in FY2025-26, comprising $200 million in confirmed financing and $300 million in contingency support.

A $100 million agreement for fertiliser imports was signed in September 2025. However, due to the ongoing Middle East crisis, ITFC has temporarily suspended the financing and the funds have yet to be disbursed.

BADC said Bangladesh had already agreed to receive up to $500 million in financing support from ITFC for food security purposes. However, the initial $100 million facility was tied exclusively to fertiliser imports from Saudi Arabia and remains unavailable because of regional instability.

ITFC has also requested additional information and documentation to process a further $200 million financing facility.

BADC has proposed that the remaining $200 million be released quickly and made available for fertiliser imports from any country in the world. It also recommended that future financing agreements avoid country-specific restrictions and allow imports from any source, particularly member countries of the Islamic Development Bank.

Participants at the preparatory meeting agreed that these proposals should be presented during the upcoming negotiations with ITFC.

ITFC's role in Bangladesh

ITFC operates as an autonomous member of the Islamic Development Bank Group, headquartered in Jeddah, Saudi Arabia.

The IsDB has been supporting Bangladesh since 1977. It began financing fuel oil imports for BPC in 1997, and since 2008 the support has continued through ITFC.

Between 2008 and FY2025-26, ITFC provided approximately $21.77 billion to support Bangladesh's energy security.

BPC imports Murban crude oil from ADNOC in Abu Dhabi and Arabian Light crude from Saudi Aramco. Janata Bank currently opens import LCs for Murban crude, while ITFC provides financing to settle payments. ITFC has also been directly financing Arabian Light crude imports after Agrani Bank stopped opening LCs due to the dollar shortage.

For LNG imports, ITFC signed a $100 million facility in 2024 and a $300 million facility in 2025, both extended until 2027 at a financing cost of SOFR plus 1.75%. Although a total LNG financing ceiling of $600 million has been approved for Petrobangla, it has not yet been fully utilised.

ITFC also provided $100 million to BADC in FY2025-26 for fertiliser imports at a rate of six-month USD SOFR plus 1.75%, along with a 0.20% administrative fee.

Push for higher financing ceiling

ERD officials said an ITFC delegation visiting Bangladesh in May 2026 expressed interest in continuing support for the country's growing energy needs and expanding financing into agriculture.

The ERD emphasised that food and agricultural security are now as important as energy security and formally requested that ITFC increase its overall financing ceiling to $3.5 billion for FY2026-27.

The proposal reflects rising global commodity prices, growing import demand and the need to safeguard Bangladesh's supply chains.

ITFC acknowledged the request and said any increase in financing would depend on Bangladesh's formal proposals and financing requirements.

An inter-ministerial preparatory meeting will finalise Bangladesh's position before the Jeddah negotiations.

The United States has started an investigation over “unfair” pharmaceutical pricing policies in Germany, a move that could lead to fresh tariffs.

US President Donald Trump’s administration has launched similar probes into dozens of trading partners over issues including forced labor and industrial overcapacity, leading to proposals of higher levies in some cases.

The US move on Thursday comes after the German government sought to overhaul its statutory health insurance system, including through lowering the prices public insurers pay for medicines, in a bid to rein in public spending.

The probe announced by the US Trade Representative’s office will determine if Germany’s “persistent underpayment for innovative pharmaceutical products” is “unreasonable or discriminatory and burdens or restricts US commerce”.

The move -- launched under Section 301 of the 1974 Trade Act -- came after the USTR pointed to evidence Germany has “unfair pricing” policies and practices.

Reduced revenue associated with such practices also appeared to contribute to reduced investment for research and development, among other issues, it added.

“As a result, the United States pays a disproportionate share of global R&D costs for innovative pharmaceuticals,” the notice said.

“President Trump has made clear that American patients should not be shouldering a disproportionate share of global pharmaceutical research and development,” US Trade Representative Jamieson Greer said in a statement.

He cited Germany’s plans to fast-track legislation “that would further reduce its spending on innovative pharmaceuticals.”

The US trade envoy’s office will next receive comments and hold a hearing in September as part of the investigation.

Germany’s health ministry confirmed ongoing talks with Washington on the issue.

“I assume the United States will honour the agreement we have in place. Reimbursements for modern, innovative medicines by our health insurance funds is a decision which falls within our national jurisdiction,” German Chancellor Friedrich Merz told reporters in Brussels on Friday.

Health Minister Nina Warken said earlier this week it would be tough for Germany to pay higher prices. “We have a tense financial situation in our health insurance system,” she said.

Germany’s VCI pharmaceutical industry federation said it took the US move “very seriously.”

“In an already tense trade policy environment, companies need reliability and planning certainty -- not a new source of disruption,” the group said in a statement to AFP.

Trump has rolled out sweeping tariffs since returning to the White House last year, though the US Supreme Court struck down many of them in February.

His administration has since turned to trade probes as officials look to reimpose more lasting duties.

This month, the USTR’s office proposed new tariffs of up to 12.5 percent on dozens of countries under its investigation into forced labor concerns.

Leaders of the Chittagong Chamber of Commerce and Industry (CCCI) have called for greater inclusion of Bangladeshi products on global e-commerce platforms, including Alibaba.com, to help diversify the country's export basket beyond the ready-made garments (RMG) sector.

The call came during a courtesy meeting between the chamber leaders and a delegation from Alibaba.com at the World Trade Centre in Chattogram today (20 June), according to a press release.

CCCI President Mohammad Amirul Haque urged Alibaba to onboard a broader range of Bangladeshi products to its global marketplace.

He said Bangladesh is entering a new phase of economic transformation, supported by policy measures proposed in the national budget for FY2026-27, including bonded warehouse facilities and free trade zones aimed at enhancing export competitiveness.

Referring to the recently approved China Specialised Economic Zone in Anwara, Chattogram, Amirul said such initiatives could emerge as important hubs for export-oriented manufacturing and services.

"Given Alibaba's global reach, there is a strong opportunity to connect Bangladeshi producers directly with international buyers," he said, adding that stronger business-to-business ties between Bangladesh and China are crucial for expanding bilateral trade.

He also assured Alibaba of the chamber's full cooperation in expanding e-commerce, training and SME development activities in Bangladesh.

Alibaba's General Manager for Pakistan and Bangladesh, Gaoya Sammer, said the company currently serves more than 50 million active buyers globally and connects over 200 million suppliers offering more than two billion products.

He said Alibaba is working to strengthen its presence in Bangladesh, particularly by promoting export diversification beyond the garment sector.

"There is significant potential in agro-products and seafood from Chattogram, which already enjoy strong demand in international markets," he said.

Sammer added that Alibaba is also focusing on integrating SMEs and entrepreneurs into its platform through training and capacity-building programmes.

He noted that a dedicated Alibaba centre has already been established in Chattogram to provide exporters with training and information on trade diversification.

Former CCCI president Amir Humayun Mahmud Chowdhury said Bangladesh's e-commerce sector remains at a relatively early stage and requires structured training and institutional support to grow.

He said platforms such as Alibaba could play an important role in expanding export opportunities and equipping young entrepreneurs with the skills needed to participate in digital trade.

Other chamber leaders and representatives from Alibaba also attended the meeting.

Amid mounting fiscal pressure and growing development needs the government has embarked on a medium-term reform agenda aimed at making every taka of public spending count while strengthening revenue collection and safeguarding debt sustainability.
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The strategy outlined in the FY2026-27 national budget seeks to improve the quality and efficiency of public expenditure, raise the country’s revenue base, and reduce reliance on debt-driven growth as Bangladesh navigates a challenging economic environment marked by inflationary pressures and global uncertainties.

At the heart of the reform agenda is a strategic expenditure framework designed to ensure that public spending is aligned with national development priorities and delivers maximum economic and social returns.

Priority sectors include infrastructure, education, healthcare, energy, agriculture and employment-generating activities, according to budget document.

It also states that public investment in education and healthcare will be gradually increased to 5 per cent over time.

Future development projects will undergo economic appraisal, cost-benefit analysis and implementation-readiness assessments to ensure value for money and maximise development impact.

The budget document notes that the government intends to improve expenditure efficiency through the rationalisation of non-priority spending and stronger fiscal discipline across public institutions.

Subsidy programmes are expected to become more targeted and efficient so that benefits reach intended recipients while limiting fiscal pressures. Support for agriculture, food security and energy supply will continue, although inefficient subsidy arrangements will be reviewed and reformed, according to the document.

The document also highlighted reforms aimed at making social protection programmes more targeted, inclusive and effective through greater use of technology, digital beneficiary databases and enhanced monitoring systems.

Technology-based systems in public procurement, project implementation and budget management are also expected to be strengthened to improve transparency, accountability and efficiency, it added.

Bangladesh’s revenue-to-GDP ratio currently stands at around 8 per cent, while the tax-to-GDP ratio is about 6.8 per cent.

The government aims to raise these ratios to 11 per cent and 9.6 per cent respectively by FY2030-31 through policy and administrative reforms.

The document said that the government seeks to improve the country’s debt sustainability and restore Bangladesh’s debt risk rating from the current “moderate” category to a “low” risk category through stronger revenue mobilisation, sustainable budget deficits and modernised debt management.

The government intends to reduce dependence on debt-financed growth and promote production, employment and private investment as key drivers of long-term economic development, it added.

For FY2026-27, the government proposed a record public expenditure programme of Tk 9.38 lakh crore, marking an increase of about 19 percent from the original Tk 7.90 lakh crore budget of the previous fiscal year.

The expansion reflects the government’s strategy to stimulate economic recovery, strengthen public services and accelerate infrastructure development amid ongoing fiscal and inflationary pressures.

Total public spending is estimated at around 13.7 percent of GDP, up from 12.7 percent in FY2025-26, indicating a more expansionary fiscal stance.

Of the total outlay, the Annual Development Programme (ADP) has been set at Tk 3 lakh crore, a 30 percent increase over the previous year’s allocation, with Tk 1.90 lakh crore expected from domestic resources and Tk 1.10 lakh crore from foreign loans and grants.

The government prioritised investment in transport and communication networks, power and energy, education, healthcare, agriculture, employment generation and social protection programmes to enhance productivity and support long-term growth.

Revenue collection has been targeted at Tk 6.95 lakh crore, leaving a budget deficit of roughly Tk 2.43 lakh crore, which will be financed through domestic and external borrowing.

The budget also placed emphasis on improving expenditure efficiency through a strategic expenditure framework, under which major spending decisions will be assessed based on their economic and social returns.

According to budget documents, non-development expenditure stands at around Tk 6.38 lakh crore, reflecting significant commitments to salaries, pensions, subsidies, interest payments and social safety net programmes.

The increased spending is expected to support the government’s growth target of 6.5 percent and inflation target of 7.5 percent while advancing reforms aimed at modernising infrastructure, strengthening human capital and fostering inclusive economic development across the country.

Bangladesh will strongly place its desire to join the Regional Comprehensive Economic Partnership (RCEP), the world's largest trade bloc, as Prime Minister Tarique Rahman begins his twin visit to Malaysia and China, starting with engagements in Southeast Asian country Malaysia focused on broader cooperation in trade, investment, energy, and the labour market.

"Bangladesh's bid to become a 'Sectoral Dialogue Partner' of Asean [Association of Southeast Asian Nations] and join the 'Regional Comprehensive Economic Partnership' will be strongly highlighted," Foreign Secretary Asad Alam Siam told reporters at the Ministry of Foreign Affairs during a media briefing today (20 June).

Additional Foreign Secretary (Public Diplomacy and Other Priority Matters) AKM Shahidul Karim and other senior ministry officials were present at the media briefing.

Besides, the foreign secretary said, a strong call will be made to Asean member states including Malaysia to play a more active and effective role in the repatriation of forcibly displaced Myanmar citizens - the Rohingyas, he said.

Sectoral dialogue partnership offers Bangladesh a realistic and impactful pathway for engagement, a senior official told UNB, noting that Bangladesh has redoubled its efforts to achieve the status of Sectoral Dialogue Partner (SDP) with Asean.

The prime minister will pay an official visit to Malaysia on 21-22 June at the invitation of Malaysian Prime Minister Anwar Ibrahim.

Malaysian Prime Minister Anwar Ibrahim paid an official brief visit to Bangladesh on 4 October 2024, at the invitation of former interim government Chief Adviser Prof Muhammad Yunus.

During his visit, Prime Minister Tarique Rahman will lead a high-level delegation from Bangladesh that includes Foreign Minister Dr Khalilur Rahman, Adviser to the prime minister on Foreign Affairs Humaiun Kobir, Expatriates' Welfare and Overseas Employment Minister Ariful Haque Choudhury, Information and Broadcasting Minister Zahir Uddin Swapon and other senior government officials.

On the first day of the visit, the prime minister will be welcomed in Malaysia with a formal reception.

The next day (22 June), a private meeting will be held between the prime minister of Bangladesh and Malaysia at the prime minister's office in Putrajaya.

Immediately after the tête-à-tête (a private conversation between two persons), a bilateral meeting will be held between the high-level delegations led by the heads of government of both countries where bilateral issues of mutual interest will be discussed.

Discussions will be held on establishing greater cooperation between the two countries in various fields including trade and investment expansion, energy cooperation, the halal economy, the semiconductor industry, agriculture, education, and people-to-people contact.

In particular, the issues of recruiting new Bangladeshi workers in various sectors in Malaysia, recruiting more professionals, ensuring facilities and benefits for workers and developing the skills of Bangladeshi workers will be discussed with importance.

During this visit, one Memorandum of Understanding (MoU) on cultural cooperation is expected to be signed, said the Foreign Secretary.

In addition, a Terms of Reference is likely to be exchanged with Malaysia to initiate negotiations on a Free Trade Agreement (FTA).

Some other documents related to bilateral cooperation are under discussion. The prime ministers of the two countries will be present at the signing ceremony of the bilateral cooperation documents.

There is also a possibility of a meeting between the prime minister and potential investors in Malaysia.

The two prime ministers will hold a joint press conference, and the prime minister of Malaysia will host a luncheon in honour of his Bangladeshi counterpart.

"We believe that this visit will play a very important role in elevating the existing bilateral and economic relations with Malaysia to a new level," said the Foreign Secretary, noting that Dhaka is hopeful the visit will further strengthen bilateral relations based on mutual respect, trust, and cooperation between the two brotherly countries.

The prime minister is scheduled to leave for Kuala Lumpur tomorrow afternoon (21 June) and, from Kuala Lumpur, will leave for China on Monday afternoon (22 June).

The Foreign Secretary indicated that the delegation sizes for the prime minister's visits to Malaysia and China have been kept relatively small, comprising 27 and 28 members respectively. "We tried to keep it at a logical level," he said.

Recently, Bangladesh's national budget for the fiscal year 2026-27 was presented to the Jatiya Sangsad. Following it, public discussions have focused on issues such as: where the necessary financing for the budget will come from; how much scope there is for being frugal by cutting on expenditures; and how the obstacles to implementing the proposed initiatives can be overcome.

Furthermore, more than 100 days have already passed since the current government assumed office. From a geopolitical perspective, the government faces various global economic challenges while also confronting numerous domestic economic problems. Against this backdrop, a relevant question arises: what should Bangladesh do on its journey forward?

In the post-budget period, the government must focus on three key areas. The first is the reform of revenue collection. This requires increasing the tax-to-GDP ratio as well as widening the tax net and the tax base. Bangladesh currently relies more heavily on indirect taxes than direct taxes. As a result, the tax burden falls disproportionately on ordinary citizens, and government revenues become more volatile to global economic shocks. Bangladesh should, therefore, shift toward greater reliance on direct taxation.

In addition, the efficiency in tax collection must be improved. In this regard, there was a proposal to divide the National Board of Revenue into two units, assigning tax policy to one unit and tax administration to another. This proposed reform is yet to be implemented.

The second one is the reform of the structure and the process of government expenditure. Given the significant constraints on financing public spending in the current fiscal year, the government must carefully prioritise its expenditures. Both in fulfilling the electoral manifesto of the government and in selecting development projects, decisions must be made objectively regarding which initiatives deserve priority. Projects that are necessary and that directly contribute to productive economic activity should receive precedence. Large-scale mega projects should, for the time being, be deferred. For the time being, economic realities rather than political considerations should guide future government initiatives.

Third, project implementation processes must be reformed to ensure the swift execution of budget proposals. Traditionally, government programmes and projects have faced various obstacles – some arising from legal complexities, others from excessive procedural requirements and bureaucratic layers. As a result, projects are delayed and prolonged, while also creating opportunities for corruption. Reform across every stage of implementation should therefore be a government priority.

In the post-budget period, the government must focus on three types of challenges: lingering problems, deepening problems, and emerging problems. Among Bangladesh's lingering problems are poverty and deprivation, economic slowdown, unemployment, inflation, and inadequate investment. Poverty appears to have increased recently, and around 36 million people are currently living below the extreme poverty line.

Bangladesh's economic growth rate is currently just above 3%. Both agriculture and industry are experiencing sluggish growth. According to government data, around 3 million people are currently unemployed. Inflation has remained high for an extended period and shows little sign of declining. Domestic and foreign investment have also slowed noticeably.

In the coming years, the government must focus on an inclusive, pro-poor growth strategy, centred on employment-led growth. This requires greater emphasis on the agricultural sector. Human resource development is essential for achieving higher growth, which in turn requires increased investment in education and healthcare, as well as policies oriented toward human development.

To reduce inflation, structural reforms in market systems are necessary, alongside the creation of strategic reserves of essential commodities. In terms of investment, incentive-based economic policies alone are insufficient. Reforms are also needed in the investment environment, including infrastructure, political stability, law and order, and security.

Among the deepening problems are inequality, financial sector distress, the burden of foreign debt and subsidies, violence against women, and environmental degradation. Inequality has become a profound issue in Bangladesh, where the wealthiest 10% of the population own three-fifths of the nation's wealth, and the richest 1% control one-quarter of all wealth. Loan defaults in the banking sector amount to nearly Tk6 trillion. Thousands of crores of taka have been illicitly shipped abroad. Bangladesh's external debt currently stands at approximately $110 billion. In the last fiscal year, the government provided subsidies worth Tk109,000 crore across various sectors. Violence against women has reached a toxic level, not only curtailing women's economic empowerment but also threatening their very existence. Climate and environmental degradation are not merely environmental crises; they are also development challenges.

There is no alternative to economic democratisation if inequality and disparity are to be reduced. Inequality exists not only in outcomes but also in opportunities. Therefore, merely removing structural regulations within the economy is not sufficient; access to resources and opportunities must be ensured for poorer segments of society. In the financial sector, establishing economic discipline and a visible framework of transparency and accountability is essential.

Addressing defaulted loans may require a combination of legal action, loan restructuring, and other coordinated measures. Regarding foreign debt, Bangladesh could engage with international financial institutions, explore debt restructuring arrangements, and also seek financing opportunities from international capital markets.

Subsidies across various sectors should be rationalised and carefully evaluated. A phased roadmap for reducing subsidies should then be developed. At the same time, efficiency and productivity must be increased in order to lessen reliance on subsidies. The state has a unique role in promoting gender equality and women's empowerment. Achieving this requires government commitment and prioritisation, effective policies and law enforcement, and partnerships with families and society. Under no circumstances should violence against women be tolerated. A sustainable development strategy that integrates economic growth with environmental protection deserves government commitment and priority. Existing effective plans should be implemented without delay.

Among the emerging challenges are wars and conflicts arising from geopolitical shifts, global political instability, and the spread of "economic nationalism." As Bangladesh is part of the global economic system, issues such as the Ukraine war, the Covid-19 pandemic, and the recent Middle East war have negatively affected its energy situation, import-export trends, overseas employment and remittances, exchange rates, and foreign exchange reserves.

At the same time, the rise of economic nationalism means that many major powers and developed countries are adopting more inward-looking economic policies. This could create difficulties for Bangladesh in securing grants, loans, and trade preferences. Developed countries are increasingly favouring bilateral relations over multilateral arrangements with developing nations like Bangladesh, potentially depriving them of the benefits of multilateral cooperation.

To address these issues, the government must adopt forward-looking and proactive policies. For example, Bangladesh could establish strategic energy reserves, diversify energy import sources, develop alternative energy options, and improve energy efficiency. Likewise, in response to economic nationalism, Bangladesh may consider forming regional alliances with other developing countries to strengthen trade and economic cooperation.

Another emerging issue is Bangladesh's graduation from the category of Least Developed Countries to that of developing countries. Bangladesh has requested the United Nations to delay this graduation process by three years, and a decision is expected next month.

If the request is approved, Bangladesh must strengthen its capabilities and capacities over the next three years to ensure that no obstacles remain to graduation. This requires careful preparation. It should also be remembered that, after graduation, Bangladesh will lose certain international benefits such as grants, concessional loans, and preferential tariff treatment. Therefore, preparation is also needed for the post-graduation period. Bangladesh has already developed a strategy paper for this transition. What is now required is its effective and phased implementation. In light of a possible delayed graduation, a revised and clearly defined roadmap could be prepared.

Let me conclude by saying that Bangladesh will face many obstacles in the coming years due to both global and domestic factors. These challenges are complex, but they are not insurmountable. With commitment, goodwill, integrity, and strong leadership, the government can confront them and, through collective effort, find effective solutions.

Economists, business leaders and academics have questioned the realism of the proposed budget's revenue targets and growth assumptions, warning that stronger institutions, accountability and implementation capacity will be critical to achieving its objectives.
They also questioned whether increased allocations for agriculture, health, education and gender inclusion would translate into tangible outcomes without stronger institutions, accountability and monitoring mechanisms.

The issues were discussed during the latest episode of the Policy Research Institute Centre's (PPRC) flagship policy dialogue series Ajker Agenda, titled "PPRC Budget Analysis", held virtually on Friday and moderated by PPRC Executive Chairman Hossain Zillur Rahman.

The discussion brought together former National Board of Revenue (NBR) Chairman Muhammad Abdul Mazid, former President of BKMEA Md Fazlul Haque, former Vice-Chancellor of Bangladesh Agricultural University M A Sattar Mandal, ActionAid Bangladesh Country Director Farah Kabir, Dean of the Faculty of Social Sciences at the University of Dhaka Mohammad Mainul Islam, and former Country Representative of the Malala Fund Musharraf Tansen.Bangladesh economic report

Focusing on revenue mobilisation, fiscal accountability and NBR reforms, Muhammad Abdul Mazid questioned whether the government's ambitious revenue targets could be achieved without a stronger economic base and greater transparency within the tax administration.

He argued that revenue collection ultimately depends on economic activity and productive investment.

"Revenue ultimately comes from a functioning economy. If productive sectors and private enterprises receive the necessary support, revenue collection will naturally improve," he said, expressing concern about the pace and effectiveness of the proposed reforms within the revenue administration.

Examining the budget from the perspective of business competitiveness and implementation feasibility, Md Fazlul Haque observed that many of the government's projections appeared to be based on expectations of a rapid economic rebound.

While welcoming several business-friendly administrative measures, he stressed that sustainable recovery would require stability in the banking sector, uninterrupted energy supplies and further improvements in law and order.

"The budget appears to assume that the economy will recover quickly, but recovery requires time. Achieving the expected outcomes will depend on creating an environment where businesses have confidence to invest and expand," he said.Economic zone consulting

Turning to agriculture and rural livelihoods, Prof Dr M ASattar Mandal questioned whether the proposed measures adequately reflected the realities faced by millions of smallholder farmers across the country.

He noted that previous initiatives had often encountered difficulties in identifying genuine beneficiaries and ensuring effective implementation at the grassroots level.

While acknowledging the government's continued focus on agriculture, he argued that the budget lacked a comprehensive strategy for transforming the sector through innovation, mechanisation and technology adoption.

"Agriculture requires a comprehensive long-term strategy. Alongside supporting farmers, we must also focus on modernisation, technological adaptation and the transition towards smart agriculture," he said.

Assessing the budget from the perspectives of gender equality, climate vulnerability and economic inclusion, Farah Kabir questioned whether increased allocations under gender-related programmes would generate meaningful opportunities for women and vulnerable communities.

She emphasised the need for greater investment in skills development, care services and access to emerging economic sectors.

"The real challenge is ensuring that budget allocations create opportunities. Women need access to skills, new sectors and support systems that enable meaningful economic participation," she said.

On healthcare financing and demographic challenges, Prof Dr Mohammad Mainul Islam examined whether the proposed allocations were sufficient to address Bangladesh's evolving health needs.Personal finance tips

He highlighted the importance of family planning within the broader public health agenda and expressed concern that dedicated allocations for this area remained insufficiently visible despite mounting demographic pressures.

"Increasing health spending is important, but ensuring effective utilisation is equally critical. Population health and family planning require sustained attention if Bangladesh is to maintain its development gains," he said.

Despite a significant increase in education spending, Musharraf Tansen questioned whether additional allocations would lead to measurable improvements in learning outcomes.

Referring to persistent deficiencies in literacy and numeracy among schoolchildren, he argued that the central challenge lay not in the volume of expenditure but in the effectiveness of its utilisation.

"The real challenge is not the size of the budget but how it is used. Unless investments improve learning outcomes through better teaching and effective implementation, increased allocations may not deliver the expected results," he said.

Concluding the discussion, Hossain Zillur Rahman stressed that the success of the FY2026-27 budget would depend less on policy declarations and more on implementation performance.Bangladesh economic report

"The real test of any budget lies not in its promises but in its implementation. Strong institutions, accountability and evidence-based policymaking will determine whether these ambitions deliver meaningful benefits for citizens," he said.

He further argued that budget implementation should be accompanied by a structured three-month monitoring framework within the country's governance system to ensure timely execution and corrective action where necessary.

The economist also highlighted the need to address persistent inequalities in peripheral regions, improve doctor-patient relationships in primary healthcare services, and recognise that technology alone cannot overcome deep-rooted weaknesses in the education system.

"All our ambitions are undermined by three institutional diseases-corruption, implementation delays and failures, and institutional waste arising from the proliferation of unnecessary offices and projects," he observed.

The discussion underscored a common concern among participants that while the proposed budget contains ambitious targets and expanded allocations across several priority sectors, its success will ultimately hinge on effective implementation, institutional reform and rigorous monitoring.

Without addressing longstanding governance weaknesses, they warned, the gap between budgetary commitments and real-world outcomes may continue to persist.

The mutual fund sector led gains on the Dhaka Stock Exchange (DSE) today (18 June), posting a 4.3% return as investor sentiment surged following a key court ruling that cleared the way for the restructuring of closed-end funds.

The rally was triggered after the Chamber Court of the Appellate Division stayed a High Court order that had halted the conversion or liquidation of closed-end mutual funds. The order, issued by Justice Farah Mahbub following a petition by the Bangladesh Securities and Exchange Commission (BSEC), removed a major legal obstacle to implementing the regulator's latest directive.

Under regulations introduced in May 2026, closed-end mutual funds trading at discounts of 25% or more to their Net Asset Value (NAV) must either convert into open-end funds or be liquidated.

Market participants said the move could revive the long-underperforming sector by providing an exit route for investors whose holdings had traded at steep discounts for years.

The impact was immediate. Of the 36 listed closed-end mutual funds, only two posted losses during the trading session.

First Janata Bank Mutual Fund and Trust Bank First Mutual Fund hit the 10% upper circuit limit, while LR Global Bangladesh Mutual Fund One gained 9.38% and Green Delta Mutual Fund advanced 8.82%.

The broader market also extended its upward trend. The benchmark DSEX rose 39 points to 5,661, while the blue-chip DS30 index gained 30 points to close at 2,143. Turnover stood at Tk 1,197 crore, reflecting strong market participation.

Beyond mutual funds, the cement and telecommunications sectors also performed strongly, registering gains of 2.5% and 1.6%, respectively.

A fresh government move gets underway to open negotiations with the International Monetary Fund (IMF) in mid-July to secure some US$4.0 billion under a new lending package to attain macroeconomic stability, officials say.
FE

The fresh loan move comes after the newly elected government has decided to scrap the ongoing credit programme that loses steam in prolonged negotiations on part of the Fund about disbursement of the remaining tranches of a $5.5-billion loan.

To this end, a delegation of the IMF will visit Dhaka next month to discuss the new financial arrangement to support Bangladesh's economic-reform programme, they add.

Ivo Krznar, the IMF Mission Chief for Bangladesh, will lead the team which will stay in Dhaka on July12-17 discussing the credit programme with the Bangladeshi authorities on their reform agenda and policy priorities.

The new credit programme will replace the ongoing $5.5-billion loan arrangement that now has become stalled after the Tarique Rahman-led government expressed unwillingness to continue with the deal made by the now-defunct Awami League government back in 2022.

Finance ministry officials say they are now taking preparation by gathering necessary facts and figures to begin the discussion. Also, they are listing the reform measures that will be carried out during the three-year tenure of the bankrolling recipe.

A senior finance official says the present government is scrapping the ongoing credit programme finding many of the previously listed reform measures tough to implement at this stage.

"However," he says, "in the new programme the IMF may not agree to ditch those important reform measures but may accept their implementation at a later stage."

Citing an example, another finance official says reform measures for boosting revenue mobilisation, bifurcation of the revenue board, and banking-sector reforms and greater exchange-rate flexibility will definitely be included in the new credit programme with the IMF.

Earlier this month, the IMF in a press release said the IMF staffs were engaging with the Bangladeshi authorities on their reform agenda and policy priorities as part of the Fund's consideration of possible next steps.

"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," said Ivo Krznar in the statement.

It recognised that the macroeconomic and political context changed substantially since the Fund-supported programme was approved in January 2023, and the authorities now faced a more complex set of challenges. Banking-sector weaknesses and low revenue mobilisation underscore the need for a renewed and sustained reform effort.

The IMF granted $4.7 billion worth of loan to Bangladesh in January 2023 amid macroeconomic instability created due to the Covid-19-related volatility and war in Ukraine.

The macroeconomy of the country began to be destabilised as export earnings fell, remittance inflow tumbled, and foreign-exchange reserves squeezed. Thereafter, the government turned to the IMF for credit support where the lender came up with reform proposals to help revive the economy of Bangladesh.

The loan was scheduled to be given in seven installments by May 2026. In June last year, the loan amount was increased by another dollop of $800 million. Until now, Bangladesh has received $3.595 billion under the lending package.

Bangladesh's overall price level has risen by almost 70 per cent over the past decade ending FY 2025-26, according to the latest GDP deflator data, underscoring the extent of economy-wide inflation and its impact on growth, incomes and purchasing power.
FE

The GDP deflator stood at 169.72 in FY26 (provisional), compared with the base-year index of 100 in FY2016, indicating cumulative price growth of 69.72 per cent during the period, according to the latest GDP deflator data released by the Bangladesh Bureau of Statistics (BBS).

The GDP deflator, calculated by dividing nominal gross domestic product (GDP) by real GDP, is a broad measure of price changes across the economy.Bangladesh stock market

Economists use it to distinguish between economic growth driven by increased production and growth resulting merely from higher prices.

Unlike the Consumer Price Index (CPI), which tracks a fixed basket of consumer goods and services, the GDP deflator captures price movements across all domestically produced goods and services.

Imported products are generally reflected in CPI calculations once they are included in the consumer basket, but they are not directly captured by the GDP deflator.

Economists and statisticians say the two indicators measure broadly the same phenomenon but differ in coverage and methodology.

The BBS recently published the latest deflator figures. With the base-year index set at 100, the latest reading of 169.72 suggests that the overall price level in the economy has increased by nearly 70 per cent over the past decade.

The indicator is widely used to assess economy-wide inflationary pressures.

A rise in nominal GDP may occur either because output expands or because prices increase. The GDP deflator helps policymakers and economists isolate real production growth from inflation-driven gains.

While the CPI focuses on changes in prices paid by consumers, the GDP deflator measures price changes across all domestically produced goods and services, making it a broader gauge of inflationary trends.

Economists say the indicator provides a useful measure of annual price movements throughout the economy.

Dr. A K Enamul Haque, Director General of the Bangladesh Institute of Development Studies (BIDS), told the FE that the GDP deflator is a globally recognised indicator that helps economists assess price changes and determine the economy's real growth performance.

"It may be more accurate to describe it as a measure of overall price changes rather than inflation alone, as it reflects movements at both wholesale and retail levels," he said.

However, Dr Haque noted that inflation measured through the CPI and the GDP deflator does not usually diverge significantly.

Dr M Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, said the country's persistently elevated inflation in recent years is clearly reflected in the deflator data.

"The GDP deflator and inflation are closely related, although they are not identical measures," he said.

CPI inflation includes imported goods contained in the consumer basket, whereas the GDP deflator covers only domestic production and services. "Most items in the CPI basket, such as rice, onions, potatoes and eggs, are domestically produced," he said.

However, imported edible oils are reflected in CPI inflation but excluded from the GDP deflator. Their weight in the CPI basket is relatively small, limiting their overall impact on inflation readings, he added.

Similarly, imported fruits carry a comparatively low weight in the CPI basket, while locally produced substitutes such as mustard oil are included in the GDP deflator.

Meanwhile, an analysis by three European academics argues that central banks place excessive emphasis on CPI inflation and should pay greater attention to the GDP deflator.

The study, published by the Brussels-based Centre for European Policy Studies (CEPS), contends that policymakers are being "misled" by relying too heavily on consumer-price inflation as a guide for monetary policy.

The authors - Cinzia Alcidi, Matthias Busse and Daniel Gros - argue that the GDP deflator is a more comprehensive measure because it captures changes in prices associated with production and income developments across the economy.

They further contend that in a high-debt environment, the GDP deflator may provide a better guide for policymakers, as government and corporate debt sustainability depends more on nominal GDP growth than on changes in consumers' purchasing power measured by the CPI.

The BBS compiles CPI data using the Jevons and chained Jevons formulas. Price information is collected from 154 markets nationwide, including 90 urban markets and 64 rural markets.

The survey covers 127 food items represented by 242 varieties and 256 non-food items represented by 507 varieties. Prices are collected monthly in both rural and urban areas, while data from the city corporations of Dhaka and Chattogram are gathered weekly.

By contrast, the GDP deflator is derived from national accounts data by dividing nominal GDP by real GDP, providing a broad measure of economy-wide price changes.

The Indian rupee ended largely unchanged against the dollar after a choppy session on Friday, as weakness in regional currencies largely offset the unwinding of long dollar positions, but the currency posted its best week in the last 11 on debt inflows. This was also the fourth weekly gain in the last five weeks.

The rupee climbed to 94.21 early in the session as long dollar positions were unwound, but surrendered gains later as the dollar strengthened and index-rebalancing outflows hit the currency. It ended little changed at 94.32 per dollar.

For the week, the rupee rose 0.83 percent, marking its best performance since week ended April 3.

“The recent RBI measures together with favorable oil prices on account of de-escalation of Middle East concerns kept the local unit in positive territory even after sizeable dollar strength today,” said Dhaval Shah, founder and managing director, De-Risk Forex Consultancy. “This suggests the bias for rupee has changed and we continue with our previous forecast of 93.50.”

The rupee has been on a rising trend after the Reserve Bank of India announced dollar-attracting measures two weeks ago.

“RBI absorbing hedging cost to attract foreign currency deposits and support external borrowing with the concessional FX facility appear most effective in the near term to lend support to the rupee,” said Clifford Lau, hard- and local-currency portfolio manager on the emerging markets debt team at William Blair Investment Management.

Robust foreign inflows into Indian government securities and a slump in oil prices since then have also worked in favour of the local currency, but the one-way move was challenged by a resurgent dollar, an uptick in oil and renewed US rate-hike expectations on Friday.

The Fed’s latest policy meeting, the first under new Chair Kevin Warsh, revived expectations of further rate increases and drove the dollar index to a one-year high. Brent crude inched up after US Vice President JD Vance withdrew from a planned meeting with Iranian negotiators on Friday to begin discussions on implementing the 14-point agreement

Reconditioned vehicle importers have urged the government to review the proposed duty structure for automobiles, saying budgetary benefits for electric vehicles (EVs) could erode the competitiveness of hybrid and fossil-fuel-powered reconditioned cars in Bangladesh’s developing automobile market.

Abdul Haque, president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida), made the call at a press conference at the Dhaka Club yesterday.The association said the proposed budget grants significant duty benefits to EVs while raising the tax burden on popular reconditioned vehicles, particularly mid-range fossil-fuel-powered cars used by middle-income consumers.The overall tax incidence on cars in the 1,201cc-1,600cc segment would rise to 159.80 percent from 132.36 percent under the proposed restructuring of engine-capacity slabs, the association said.As a result, prices of popular models such as the Toyota Premio and Axio may rise by Tk 2.5 lakh to Tk 3 lakh, Barvida said.

Haque said these vehicles are mostly bought by middle-income and first-time buyers, who are already affected by the depreciation of the taka, higher import costs, and the economic slowdown.

“The burden will ultimately fall on consumers,” he said.

Reaz Rahman, secretary general of Barvida, said the government should restore the previous duty structure for the 1,200cc-1,600cc segment, which is widely used by middle-class consumers.

Otherwise, car sales and government revenue will both decline, he said.

Vehicle registrations have already fallen from around 25,000 units to 9,400 units in a year, hurting businesses and reducing revenue, the association said.

Barvida members have invested around Tk 20,000 crore locally and pay about Tk 6,000 crore in annual revenue, Haque said, adding that the sector also supports many small and medium-sized entrepreneurs and employs several lakh people directly and indirectly.

Haque said Bangladesh lacks adequate charging and servicing infrastructure to support a rapid shift to EVs, unlike its well-established hybrid ecosystem.

“EVs may be the future, but policy support has to reflect ground reality,” he said.

Barvida also flagged unequal duty treatment between brand-new and reconditioned plug-in hybrids, noting that the government cut supplementary duty on new plug-in hybrids of up to 2,000cc and withdrew regulatory duty on those of up to 1,800cc, while reconditioned versions in the same range still face higher duties.

The association urged the government to include reconditioned plug-in hybrids in the same benefit structure, rationalise tax slabs for 2,001cc-2,500cc vehicles, and withdraw the proposed tax hike on mid-range fossil-fuel-powered cars.

It also called for stricter customs valuation of new EVs to prevent under-invoicing.

“We want a level playing field,” Haque said.

Japan plans to set a target of about $2.3 trillion in combined public ​and private investment by 2040 across ‌17 strategic sectors as part of Prime Minister Sanae Takaichi’s new growth strategy, the Nikkei reported ​on Friday.

The 370 trillion yen investment ​initiative, to be unveiled as early as next week, will focus on areas such ​as AI, chips and space development, as ​Takaichi seeks to use government spending to spur private-sector investment, the business daily said, without citing a ​source for the information.

A call by Reuters ​to the Prime Minister’s Office on Saturday to seek ‌comment went unanswered outside business hours.

The government is considering creating a multi-year budget framework to ensure stable funding for investments deemed critical to ​economic security, ​some of ⁠which may be financed through bridging bonds.

Bridging bonds are used to ​cover temporary funding needs and are ​issued ⁠with guarantees on specific means to pay for redemption, allowing the heavily indebted government ⁠to ​argue that it is mindful ​of fiscal discipline even as it boosts spending.

The Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida) has urged the government to withdraw the proposed increase in taxes on mid-range fossil fuel-powered reconditioned vehicles, warning that the move would significantly raise car prices for middle-income buyers while hurting investment and government revenue.

At a press conference held at the Samson H Chowdhury Centre of Dhaka Club today (20 June), Barvida President Abdul Haque also called for equal customs benefits for brand-new and reconditioned plug-in hybrid vehicles and similar policy support for hybrid cars.

According to Barvida, the proposed FY2026-27 budget replaces the existing 1-1500cc engine category with two new slabs – 1-1200cc and 1201-1600cc – raising the overall tax incidence on many popular fuel-efficient reconditioned vehicles from 132.36% to 159.80%.

The association estimates the changes would increase the price of a reconditioned Toyota Premio by around Tk3 lakh and a Toyota Axio by about Tk2.5 lakh, making car ownership more difficult for middle-income consumers. It warned that weaker demand could also discourage investment in the sector and ultimately reduce government revenue.

Barvida also criticised the proposed duty structure for plug-in hybrid vehicles, saying while the budget offers customs concessions for brand-new imports, reconditioned models will continue to face a 5% regulatory duty. It urged the government to apply the same supplementary and regulatory duty rates to both new and reconditioned plug-in hybrid vehicles, including microbuses.

The association further proposed reducing the supplementary duty on 2001-2025cc plug-in hybrid vehicles to 30% and extending similar tax incentives to conventional hybrid vehicles.

Barvida argued that although the government is encouraging electric vehicle imports through tax incentives, Bangladesh still lacks adequate charging infrastructure. Hybrid vehicles, on the other hand, already have an established servicing and maintenance network, making them a more practical option for promoting cleaner transport in the near term.

The association said the reconditioned vehicle sector has attracted around Tk20,000 crore in local investment, contributes about Tk6,000 crore in annual government revenue and supports several lakh jobs directly and indirectly.

The association also called for a rational long-term tax structure and the removal of customs valuation disparities, saying reconditioned vehicles currently face duties ranging from 159.80% to 1,007.50%, creating an uneven competitive environment.

Barvida Secretary General Reaz Rahman; Adviser Shahidul Islam; Vice-President Saifullah Samrat; former presidents Habib Ullah Don and Mannan Chowdhury Khosru, among other leaders of the association, were present at the conference.

Bangladesh is expecting roughly US$3.0 billion in development support and grants from China during Prime Minister Tarique Rahman's upcoming visit starting June 23.

Mr Rahman will be on China tour on June 23-26 attending the World Economic Forum's Summer Davos gathering in Dalian before holding talks in Beijing with President Xi Jinping and Premier Li Qiang. Senior officials concerned have said Dhaka expects substantial Chinese backing for a series of infrastructure, industrial and public-health projects, alongside investment commitments from Chinese private companies.

"It is not wise to mention the exact amount, but we are expecting substantial support for several projects, and there will be grants as well," Foreign Secretary Asad Alam Siam told The Financial Express.

Officials say Bangladesh would seek Chinese financing for three new projects: the modernisation of Mongla Port, the establishment of a Chinese economic zone, and construction of a 1,000-bed hospital.

Among these, the Mongla seaport-modernisation project has long been under negotiation between the two countries but was stalled at the fag-end of the previous Hasina regime.

The project was supposed to be implemented under government concessional loan and its estimated cost was US$400 million. But now the project cost may be much higher, sources say.

The two sides are also expected to review progress on several large-scale projects already under implementation, including the $1.4-billion Expansion and Strengthening of Power System Network under Dhaka Power Distribution Company (DPDC), $966-million Power Grid Network Strengthening Project under Power Grid Company of Bangladesh (PGCB), $1.1-billion Dhaka-Ashulia Elevated Expressway, and $235-millio Rajshahi WASA Surface Water Treatment Plant.

The visit comes as Bangladesh seeks to revive investment inflows and accelerate infrastructure development amid persistent external-financing pressures and slowing industrial expansion.

Officials have described investment promotion as the central objective of the trip. "In fact, the main focus of this visit will be to attract Chinese investment, which is critical for economic growth," Mr Siam says.

The prime minister is scheduled to address a Bangladesh Investment Forum in Beijing and meet executives from several leading Chinese companies, including Chery Group and other major investors exploring opportunities in manufacturing, transport and logistics.

China has emerged as one of Bangladesh's most important economic partners, providing billions of dollars in infrastructure financing over the past decade while remaining the country's largest source of imports.

The two governments are expected to sign up to 17 cooperation instruments during the visit, including 13 memorandums of understanding, two formal agreements, an action plan and a protocol-related note.

Discussions will also cover water-resource management, including the long-discussed Teesta River Master Plan, although officials say no specific agreement on the project is expected to be signed during this tour.

"Integrated river management will be discussed in a broad and comprehensive manner. The Teesta issue will certainly be raised, along with wider cooperation on river management," Mr Siam says.

Another closely watched aspect of the visit will be Bangladesh's response to President Xi's signature international initiatives.

Dhaka is considering participation in one or more of China's four major global frameworks, including the Global Development Initiative (GDI), although officials stress that a final decision has yet to be taken.

"We are actively considering these initiatives. After the visit, we will be able to say whether we are joining any of them or not," Mr Siam says, adding that Bangladesh welcomes the broader vision behind the proposals. publication

Any decision to align more closely with Beijing's global initiatives would be closely monitored by regional and international partners as Bangladesh seeks to maintain a balanced foreign policy while expanding economic cooperation with China.

Mr Rahman will spend June 23-24 in Dalian, attending the World Economic Forum's Annual Meeting of the New Champions, known as Summer Davos. He is expected to participate in discussions on climate change and meet senior WEF officials and business leaders.

In Beijing, the prime minister will hold separate meetings with Premier Li Qiang and President Xi Jinping. He is also scheduled to meet Zhao Leji, chairman of the Standing Committee of the National People's Congress, alongside senior officials from the Communist Party of China, the China International Development Cooperation Agency and the Export-Import Bank of China.

The visit is expected to provide an early indication of how Bangladesh's new leadership intends to position the country within an increasingly competitive Asian geopolitical landscape while pursuing investment, trade and infrastructure partnerships essential for sustaining long-term growth.