The government yesterday (23 May) approved separate proposals for procuring three cargoes of liquefied natural gas (LNG) from the spot market and importing 70,000 metric tonnes of fertiliser to ensure uninterrupted energy and fertiliser supply across the country.

The approvals came at the 23rd meeting of the Cabinet Committee on Government Purchase for 2026 held at the Cabinet Division conference room at the Secretariat.

Finance Minister Amir Khosru Mahmud Chowdhury presided over the meeting.

The committee recommended approving a proposal from the Energy and Mineral Resources Division to purchase three LNG cargoes from the international spot market through international quotation collection under Rule 105(3) (Ka) of the Public Procurement Rules, 2025.

The LNG cargoes are scheduled to arrive on 15–16 June, 21–22 June and 25–26 June this year, corresponding to the 23rd, 24th and 25th consignments.

The total procurement cost, including Advance Income Tax (AIT), has been estimated at Tk2,330.82 crore.

Under the proposal, two cargoes will be procured from Posco International Corporation of South Korea and one cargo from TotalEnergies Gas & Power Ltd of the United Kingdom.

The committee also recommended approving a proposal from the Ministry of Industries to import 30,000 metric tonnes of bagged granular urea fertiliser under the 15th lot from Karnaphuli Fertiliser Company Limited during the 2025–26 fiscal year.

The total procurement cost for the urea fertiliser has been fixed at Tk254.52 crore, while the price per metric tonne was set at $688.375, including a Free on Board (FOB) price of $683.375 and a bagging charge of $5.

Officials said the fertiliser would be procured from KAFCO to maintain a stable fertiliser supply for the country's agricultural sector.

Meanwhile, the committee recommended another proposal from the Ministry of Agriculture to import 40,000 metric tonnes of DAP fertiliser under the 12th (optional fourth) lot from OCP Nutricrops of Morocco under a state-level agreement with Bangladesh Agricultural Development Corporation.

The proposed procurement cost for the DAP fertiliser import has been estimated at Tk434.66 crore, with the price set at $881.67 per metric tonne.

The role of the Bangladesh Securities and Exchange Commission (BSEC) and stock exchanges is set to become more prominent in mergers, acquisitions, demergers and other corporate restructuring activities involving listed companies under a new draft regulation.

The securities regulator today (23 May) published the draft "Bangladesh Securities and Exchange Commission (Corporate Restructuring) Rules, 2026" and invited opinions, suggestions and objections within two weeks of publication.

According to the draft rules, listed companies will have to submit merger or demerger schemes to the BSEC and stock exchanges for review before seeking court approval.

BSEC said listed companies frequently engage in mergers, demergers, amalgamations, acquisitions and other restructuring activities, which require proper valuation, adequate disclosures and greater market transparency, particularly to protect minority shareholders.

Speaking to The Business Standard, BSEC Director and Spokesperson Abul Kalam said companies would first need board approval for any restructuring proposal before approaching the court.

"The approved draft scheme must then be submitted to the BSEC and the stock exchanges. After incorporating the observations of the regulator and exchanges, companies will have to obtain shareholders' approval before going to court," he said.

He added that the proposed rules would not curtail the authority of companies or courts, as the BSEC and stock exchanges would act as observers in the process.

According to the draft, any listed company undertaking restructuring with another listed or non-listed entity must submit the draft scheme to the commission and relevant stock exchange within 30 days of board approval, along with prescribed documents.

Boards of directors will also be required to record opinions on the rationale for the restructuring, fairness of valuation, adequacy of disclosures, impact on minority shareholders, potential share dilution, related-party transactions and market integrity concerns.

The rules also require disclosure of independent directors' opinions and explanations regarding compliance with securities laws, regulations and listing conditions.

After receiving observations from the regulator and stock exchanges, companies will have to place the revised scheme before shareholders and creditors for approval through a special resolution. Companies must also disclose price-sensitive information and announce a record date.

The restructuring process will remain subject to court approval, although the BSEC may become a party to court proceedings if necessary.

The draft rules also prescribe extensive disclosure requirements for restructuring schemes, including transaction consideration in cash, shares, assets or securities; share swap ratios; transfer of liabilities; tax obligations; contingent liabilities; employee status; provident fund and gratuity arrangements; and measures to protect minority shareholders.

Companies must additionally disclose whether the restructuring could lead to a backdoor listing or reverse takeover, along with the benefits accruing to sponsors and controlling shareholders, the extent of dilution for public shareholders and the valuation methodologies used.

One of the most significant provisions relates to valuation requirements. Companies undertaking restructuring must appoint independent valuers from among audit firms enlisted with the commission or registered merchant bankers.

However, those firms or merchant bankers cannot act as statutory auditors or corporate advisers to the companies involved in the restructuring.

The valuer must certify that the valuation, exchange ratio or swap ratio is fair and reasonable and does not prejudice any class of shareholders or creditors. The valuation also cannot be determined solely on the basis of market price.

The draft rules make it mandatory to apply at least two absolute valuation methods and two relative valuation methods.

For absolute valuation, the rules mention methods such as Discounted Cash Flow (DCF), Dividend Discount Model (DDM), Residual Income Model (RIM) and Asset-Based Model.

For relative valuation, the draft includes Price-to-Earnings (P/E), Price-to-Book (P/B), Price-to-Sales (P/S) and EV/EBITDA-based methods.

The draft further states that the discount rate used in valuation cannot be lower than the yield on 10-year treasury bonds. Revenue growth assumptions also cannot exceed the company's average growth rate over the previous five years unless justified by capacity expansion under a Balancing, Modernisation, Rehabilitation and Expansion (BMRE) project.

Companies will also have to obtain no-objection certificates from banks, financial institutions, bondholders, secured creditors and holders of Islamic Shariah-based securities.

The draft rules include a detailed checklist of documents, including audited financial statements for the past five years, asset revaluation reports, physical inspection reports, land documents, loan papers, tax records, VAT returns, related-party transaction details, inventory statements, bank statements and due diligence certificates.

The rules also require approval of restructuring schemes by at least 75% of general shareholders, excluding sponsors, directors and shareholders holding 5% or more shares.

India's growing reliance on Venezuelan crude comes as the closure of the Strait of Hormuz disrupts a major corridor for its oil imports, forcing a rapid shift in supply chains and energy diplomacy.

What is driving the crisis?

The escalation of conflict involving Iran has led to the closure of the Strait of Hormuz, a key maritime route through which nearly half of India's crude oil imports typically pass. A US naval blockade of Iranian ports has also halted Iranian shipments to India this month. Reports Al Jazeera.

At the same time, supply from other Gulf partners has tightened. Imports from Saudi Arabia have fallen sharply from about 670,000 barrels per day in April to roughly 340,000 barrels per day in May. Indian officials have also raised concerns about maritime security after multiple incidents involving India-linked vessels, including one ship that sank following a suspected attack.

Why is India turning to Venezuela?

With Gulf flows constrained, India has increased imports from Venezuela, which now ranks as its third-largest crude supplier this month.

Shipments have risen by nearly 50% from April to around 417,000 barrels per day in May, after a nine-month period with no exports to India.

The country holds the world's largest oil reserves, estimated at 303 billion barrels, and about 17% of global totals. Its re-emergence as a supplier is also linked to shifts in US policy following the removal of former President Nicolas Maduro by US forces in January 2026, which led Washington to push Venezuelan crude into global markets.

What role is the United States playing?

The United States is actively shaping this realignment. US Secretary of State Marco Rubio is visiting India from (23–26 May) to discuss energy security and trade, with Washington signalling it wants to sell India "as much energy as they'll buy".

At the same time, the US is encouraging Venezuelan exports to reduce Iran's leverage in negotiations and to push diversification away from Russian oil.

Venezuelan Acting President Delcy Rodriguez is also expected in India next week to discuss future oil sales.

Can Venezuelan crude replace Gulf supply?

Venezuela's crude is ultra-heavy and sulphur-rich, making it harder to process in many refineries. However, it is considered well suited for Reliance Industries' Jamnagar refinery in Gujarat, one of the few global facilities designed to handle such grades efficiently.

This compatibility gives India a limited but important alternative supply option as Gulf flows remain disrupted.

However, the scale of Venezuela's current exports to India—around 417,000 barrels per day—remains well below the combined volumes historically sourced from Gulf suppliers, particularly during normal Strait of Hormuz operations.

What does this shift mean globally?

The US-backed reopening of Venezuelan oil flows is also seen as part of a broader effort to reshape global energy supply chains. The strategy aims to reintegrate Venezuela's oil sector—home to the world's largest reserves—into global markets while reducing leverage held by Iran and Russia.

US companies including Chevron currently produce about 250,000 barrels per day in Venezuela, while ExxonMobil is reportedly seeking to re-enter the country after nearly two decades.

Venezuelan oil is helping India offset some immediate supply disruptions from the Gulf, but it does not fully replace the scale or strategic importance of routes affected by the Hormuz closure.

The shift instead reflects a broader reordering of energy flows, where Venezuela is becoming a temporary pressure valve in a system still heavily exposed to geopolitical risks in the Middle East.

Only one bank will be able to pay cash dividends next year after the Bangladesh Bank barred lenders with paid-up capital below Tk 2,000 crore from making such payouts.

In a circular issued yesterday, the Bangladesh Bank (BB) said the move is aimed at strengthening the capital base of the banking sector. It also seeks to improve the ability of commercial lenders to absorb future risks amid a challenging global and domestic financial environment.

Only BRAC Bank and National Bank PLC (NBL) meet the higher paid-up capital threshold among listed lenders.

However, National Bank remains in significant losses, leaving BRAC Bank as the only institution effectively positioned to meet the requirement for cash dividend payments.

Even for banks that meet the paid-up capital threshold, the central bank has capped cash dividends at 50 percent of the declared payout, with the remainder to be issued as stock dividends.

The new rules will take effect from dividend declarations for the year ending December 31, 2026 and onwards, according to the Supervision Policy and Coordination Department of Bangladesh Bank.

The policy is expected to affect most listed banks, raising concerns among market participants about shareholder returns.

While the measure may improve the resilience of the banking sector in the long run, it is likely to reduce flexibility for banks that are otherwise financially stable.

Mashrur Arefin, chairman of the Association of Bankers, Bangladesh (ABB), the apex body of the country’s commercial bank executives, said, “This is a good move towards strengthening the capital base of the banks.”

He said a few banks with weak capital bases did take cash out in the past. But the shareholders of healthy banks will now suffer. “That’s not good.”

The ABB chairman said the dividend rule should instead have been linked to the Capital Adequacy Ratio, which he argued would have been fairer for shareholders of well-performing banks.

“Shareholders have a reasonable expectation of cash returns when a bank is performing well. That incentive for supporting strong banking institutions is being overlooked,” said Arefin, who is also managing director and chief executive officer of City Bank.

“This will not help our agenda to encourage people to go to the capital market for their investments. I don’t know why CAR wasn’t considered. Is it because the government is seeking higher credit growth? But that connection is too distant.”

Banks can raise paid-up capital through rights shares to meet the Tk 2,000 crore threshold and retain eligibility for cash dividends. A rights issue allows existing shareholders to buy additional shares, usually at a discounted price, in proportion to their current holdings.

Asif Khan, president of CFA Society Bangladesh, also opposed linking dividend eligibility to paid-up capital, suggesting it should instead be tied to shareholders’ equity, capital adequacy ratio and provisioning levels.

He said that only one bank now effectively meets the Tk 2,000 crore threshold. So, most of the commercial lenders will be unable to pay cash dividends from next year, which could affect the capital market.

According to Dhaka Stock Exchange (DSE) data, National Bank PLC has the highest paid-up capital among listed lenders at Tk 3,219 crore, followed by BRAC Bank at Tk 2,289 crore and City Bank at Tk 1,749 crore.

Other major lenders include Eastern Bank (EBL), Islami Bank Bangladesh, United Commercial Bank, Pubali Bank, Bank Asia, Southeast Bank and Prime Bank, all of which fall below the paid-up capital threshold.

EBL’s paid-up capital stands at Tk 1,643 crore, Islami Bank Bangladesh’s at Tk 1,609 crore and United Commercial Bank’s at Tk 1,550 crore, according to Dhaka Stock Exchange (DSE) data.

Pubali Bank has Tk 1,496 crore, Bank Asia Tk 1,391 crore and Southeast Bank Tk 1,373 crore, while Prime Bank’s paid-up capital is Tk 1,218 crore.

Khan said many of these banks maintain strong capital adequacy ratios and have no provisioning shortfalls.

“So, why would they be barred from giving cash dividend?”

He also pointed to a possible policy conflict with the National Board of Revenue (NBR), which imposes higher tax on listed firms that do not pay cash dividends.

The Bangladesh Bank said the decision was taken considering the overall condition of the banking sector, depositor protection, financial resilience and the need to strengthen capital conservation buffers.

A senior central bank official said the policy was intended to improve the health of the banking sector and protect depositors’ interests.

Other eligibility criteria for dividend payout would remain unchanged, he added.

Depositors of six troubled non-bank financial institutions (NBFIs) yesterday demanded that the government issue a gazette notification ensuring full repayment of their deposits, along with profits, by the end of this year.
Speaking at a press conference at the National Press Club, an alliance of the affected depositors claimed that they were being kept in the dark about the government’s plans for them.
Neither the Bangladesh Bank nor the finance ministry had officially communicated with them despite a silent protest and memorandum submitted on May 6, they said.

In a press statement, the alliance said around 12,000 depositors were still waiting for clarity regarding the fate of their savings, many of whom had been unable to access their money since 2019.
“We are only hearing things through the media. No ordinance has been issued yet. No official government order has reached us,” said Jafar Ullah Khan, convenor of the Alliance of 6 NBFIs Depositors Recovery Committee.

“We will not accept any under process language as an alternative to a legal commitment. Issue the gazette notification. Fix a timeframe. Give it in writing,” he added.

The alliance argued that the central bank must take responsibility for ensuring their payment as the depositors had placed their life savings in institutions approved by the regulator.

The depositors did not gamble or make risky investments, they said, adding that teachers, pensioners, widows, and retired individuals deposited their savings relying on the regulator’s approval of the institutions.The depositors also rejected any proposal to return only the principal amount without profits.
Kawsar Hossain Chowdhury, co-founder and coordinator of the alliance, said contractual profits were promised under the deposit schemes and depositors should not bear losses caused by institutional failures and regulatory negligence.“Now, we are being offered only the principal money back -- as if years of waiting have no value, as if inflation does not exist,” he said.

Citing inflation data and contractual deposit rates, the alliance claimed that a depositor who invested Tk 10 lakh in 2019 had effectively suffered a loss of more than Tk 12 lakh due to inflation and loss of profit income.The platform also demanded criminal proceedings against directors, officials, and default borrowers responsible for the collapse of the institutions.

It called for recovery of assets from defaulters, publication of a public register naming responsible individuals, and ensuring that no one is exempted from liability.Munira Khan, former member of the National Human Rights Commission, said the affected depositors were not beggars seeking aid for underprivileged people, but rather demanding the return of their own funds stuck in the NBFIs.

She said they wanted an implementable roadmap for refunding the money, not verbal promises.The Bangladesh Bank did not issue any warning while the institutions, that the regulator itself had approved, were being looted, said Prof Farid Rashid Kamal, who is also one of the affected depositors.

Auditors and credit rating agencies also presented rosy pictures of the NBFIs, he added, noting that all those responsible for safeguarding the institutions failed in their duties.

“Now, it is a moral duty of the government to ensure the return of the funds,” he added.

Bangladesh's apparel exports to the European Union (EU) fell 19.26 percent year-on-year to €2.89 billion in January-February this year, according to data from Eurostat.

Exports stood at €3.57 billion during the same period a year earlier.

In terms of volume, Bangladesh’s apparel exports to the bloc declined 11.14 percent to 205.52 million kilogrammes during the two-month period.

Eurostat data also showed a decline in unit prices, with the average export price per kg falling 9.13 percent year-on-year to €14.04.

February saw export value falling 12.39 percent, volume dropping 3.30 percent, and unit prices declining 9.39 percent on a year-on-year basis.

During the January-February period, China’s apparel exports to the EU rose to €4.20 billion, although export value posted a negative growth of 4.01 percent. Unit prices declined 5.27 percent, while export volume increased 1.34 percent.

Meanwhile, Turkey recorded a 22.91 percent decline in apparel exports to the EU to €1.20 billion, while Vietnam posted a 2.06 percent fall to €711.73 million despite a 6.56 percent rise in unit prices.

During the same period, the EU’s total apparel imports saw negative growth at 11.27 percent year-on-year to €13.83 billion.

Apparel imports by the bloc also fell 6.23 percent in volume, while average unit prices declined 5.38 percent in 2026.

The Dhaka Stock Exchange (DSE) extended its rally for a fourth consecutive session today (23 May), as investor confidence strengthened following Finance and Planning Minister Amir Khosru Mahmud Chowdhury's pledge to ensure professional and skilled leadership at key financial institutions.

Speaking at a policy symposium in the capital, Finance and Planning Minister Amir Khosru Mahmud Chowdhury announced a complete ban on political appointments in the financial sector, including the Bangladesh Securities and Exchange Commission (BSEC).

He said the government would appoint only professional and competent individuals to key regulatory positions in a bid to restore investor confidence and strengthen corporate governance.

The announcement boosted market sentiment, triggering a broad-based rally and adding significantly to market capitalisation, according to market insiders.

The benchmark DSEX index rose 64 points, or 1.22%, to close at 5,328. Over the past four trading sessions, the index has gained a cumulative 125 points.

The blue-chip DS30 index also advanced strongly, climbing 34 points to finish at 2,030.

Market breadth remained positive, with 217 issues advancing, 117 declining, and 60 remaining unchanged.

Total market capitalisation at the premier bourse increased by Tk5,400 crore in a single day, while turnover rose 4% to Tk902 crore.

The minister also said the government would prioritise improving auditing standards and financial disclosure requirements to rebuild market credibility and attract foreign institutional investors.

According to EBL Securities' daily market review, the market opened strongly from the first trading bell, supported by aggressive buying in large-cap banking and telecom stocks.

The brokerage house said expectations of meaningful reforms, early signs of domestic macroeconomic stabilisation, and easing geopolitical tensions around the Strait of Hormuz – which had earlier dampened investor risk appetite – helped sustain the rally ahead of the Eid holidays.

Banking and telecom stocks led the gains, with major index contributors including BRAC Bank, Grameenphone, Robi Axiata, Square Pharmaceuticals, and City Bank.

Sector-wise, engineering stocks dominated turnover, accounting for 15.7% of total transactions, followed by pharmaceuticals at 15.4% and general insurance at 12.9%.

The cement sector posted the highest gain, rising 3.3%, followed by services at 2.8% and banking at 2.1%. The information technology sector was the only major laggard, declining 1.9%.

Several loss-making companies also featured among the day's top gainers, indicating renewed speculative activity among some investors. Meghna Cement Mills topped the gainers' list with a 9.86% rise, followed by Emerald Oil Industries, Aramit Cement, Regent Textile Mills, and Sena Insurance.

On the losing side, Daffodil Computers shed 9.36%, followed by Premier Leasing & Finance, Apex Spinning & Knitting Mills, and CAPM BDBL Mutual Fund 01.

In terms of liquidity, Asiatic Laboratories emerged as the most traded stock, followed by NCC Bank, RD Food, Mir Akhter Hossain, and Jamuna Bank.

The upbeat mood also spilled over to the Chittagong Stock Exchange (CSE), where key indices posted sharp gains. The Selective Categories' Index (CSCX) rose 81 points to 9,131, while the All Share Price Index (CASPI) gained 138 points to close at 14,838.

However, turnover at the port city bourse fell 20% to Tk24 crore.

Bangladesh’s public debt rose to around 41 percent of gross domestic product (GDP) in fiscal year 2024-25, with rising domestic borrowing and weak revenue mobilisation increasing fiscal pressure ahead of the country’s graduation from least developed country (LDC) status in 2026, the Asian Development Bank (ADB) said.

In a report titled Bangladesh at a Crossroads of Reforms, released earlier this month, the Manila-based lender said Bangladesh faces a moderate risk of both external and overall debt distress, with limited capacity to absorb shocks in the near term.
The ADB said the risks stem from structural weaknesses rather than a sharp deterioration in headline debt indicators.
Bangladesh’s tax-to-GDP ratio remains among the lowest among lower-middle-income economies, while persistent weaknesses in fiscal governance, public expenditure management and debt administration continue to undermine economic stability, the report said.
The lender warned that Bangladesh’s graduation from LDC status in November 2026 would gradually reduce access to concessional financing and trade support measures, increasing the need for stronger domestic revenue mobilisation and improved fiscal governance.

Domestic debt accounted for 55.6 percent of the country’s public and publicly guaranteed debt stock in FY25, increasing rollover and debt-servicing pressures amid weak revenue collection and a bank-dominated investor base. External debt made up the remaining 44.4 percent.

The report said external debt remained largely concessional and below solvency thresholds, although risks have increased following downward revisions to export data for FY2023 and FY2024.

Rising domestic borrowing is also increasing debt service-to-revenue pressures and strengthening sovereign-bank linkages, amplifying crowding-out risks for private sector credit and contingent liabilities, the ADB said.

Stress tests showed that disaster-related shocks pose the biggest long-term threat to Bangladesh’s debt sustainability.
Bangladesh’s tax-to-GDP ratio stood at 7.5 percent, constrained by weak compliance systems, fragmented administration and heavy reliance on manual processes.

Although reforms such as the Income Tax Act 2023 and expanded digital tax services have been introduced, the ADB said tax administration still relies heavily on manual systems and fragmented databases. Revenue collection often falls more than 15 percent short of targets because of unrealistic projections and institutional weaknesses.

The report also highlighted weaknesses in debt management systems and warned that state-owned enterprises are creating additional fiscal risks as liabilities and government guarantees continue to rise.

The lender said these vulnerabilities are increasing Bangladesh’s overall fiscal risk exposure at a critical stage of its economic transition.

The rate of development spending improved marginally in the first ten months of the current fiscal year 2025-26, but the amount of money spent during the period was actually lower compared to a year earlier.

Spending under the Annual Development Programmes (ADP) stood at Tk 86,516 crore during the July-April period, or 41.41 percent of the total revised allocation, according to data released yesterday by the Implementation Monitoring and Evaluation Division (IMED). In April alone, spending rose 5.22 percent.

The ten-month execution rate is slightly higher than the 41.31 percent achieved during the same period of FY25 but is Tk 6,908 crore less in absolute terms.

The revised ADP allocation for FY25 stood at Tk 2.16 lakh crore, while it was Tk 2.08 lakh crore for FY26.

The marginal uptick in the execution rate does little to reverse a multi-year slide in budget implementation.

The 10-month ADP execution rate stood at 49.26 percent in FY24, 50.33 percent in FY23, and 54.57 percent in FY22.

In FY25, the full-year development spending hit a historic low, with only 68 percent of the revised ADP implemented, the weakest performance since FY1976-77.

The decline in the actual money spent reflects the disruption of a mid-year political transition following the uprising, which prompted several project directors and contractors to step away from their positions. Economic uncertainty compounded the slowdown.

The Health Services Division has performed the worst, implementing only 22.15 percent of its July–April target despite rising concerns over healthcare access.

With two months left in the fiscal year, analysts say Bangladesh is on course for another year of weak ADP execution.

The shortfall may also dent revenue collection by the National Board of Revenue, which collects advance income tax and VAT from implementing agencies. However, lower execution could also help contain the budget deficit and reduce government borrowing from the banking sector.

Among top-allocated ministries, the Ministry of Science and Technology’s execution rate stands at 80 percent, driven largely by the Rooppur Nuclear Power Plant expenditures.

The Energy and Mineral Resources Division follows at 68 percent, and the Ministry of Agriculture at 62 percent.

Meanwhile, despite the sluggish implementation trend, the new BNP-led government has announced an ambitious development budget of Tk 3 lakh crore for the upcoming FY27.

The US dollar firmed on Thursday but stayed below a six-week peak as hopes that Washington was nearing a deal with Tehran to end the war in the Middle East capped further rises.

US President Donald Trump on ​Wednesday said negotiations with Tehran were in the final stages, while also warning of further attacks if Iran does ‌not agree to a deal.

The dollar, often a safe haven for investors, firmed 0.1 percent against the yen to 159.060 yen after falling for the first time in eight sessions against the yen on Wednesday.

Bank of Japan policy board member Junko Koeda added a measure of support for the yen with hawkish comments on Thursday, saying in ​a speech that the central bank needs to continue to raise rates with underlying inflation already around a 2 percent target.

​The euro was 0.2 percent down at $1.160050, after dipping on Wednesday to its weakest level since April 7 at $1.1583 before bouncing back.

The euro dipped after French PMIs for May showed the economy contracting at its sharpest pace in five and a half years.

“Terrible French ​PMI ... but ECB seems determined to raise rates,” said Kenneth Broux, head of corporate research FX and rates at Societe Generale, to explain ​the negative euro.

Traders meanwhile are awaiting euro area composite PMIs for May which will hit screens this morning.

Sterling was down 0.1 percent at $1.3421.

The dollar index , which measures the currency against the euro, yen and four other rivals, rose 0.2 percent to 99.295, down from a peak of 99.472 on Wednesday, the strongest level since April 7.r

Three private commercial banks — Mutual Trust Bank, Southeast Bank, and Trust Bank — have received formal approval from the Bangladesh Securities and Exchange Commission (BSEC) to disburse their declared stock dividends for the financial year ended 31 December 2025.

According to regulatory disclosures filed with the Dhaka Stock Exchange yesterday, the banks are utilising these stock issuances to strengthen their capital bases in alignment with Basel III requirements and to provide the necessary fiscal cushion for future business expansion.

These regulatory clearances allow the banks to convert retained earnings into equity paid-up capital, a strategic move often preferred by lenders to maintain high capital adequacy ratios while supporting larger credit portfolios.

Mutual Trust Bank received consent to issue a 12% stock dividend. The bank's financial performance for 2025 showed steady growth, with its consolidated earnings per share (EPS) rising to Tk3.14 from Tk2.93 in the previous year, while its net asset value (NAV) per share improved to Tk28.11.

The bank informed its stakeholders that it would soon re-fix and notify a new record date for dividend entitlement.

Southeast Bank secured the regulator's nod for a 7% stock dividend, which complements its 3% cash dividend recommendation. The bank recorded a sharp recovery in its bottom line, with consolidated EPS jumping to Tk2.51 in 2025 from just Tk0.32 in the preceding year. Its NAV per share also rose to Tk25.74.

The bank has scheduled 4 June as the record date for the stock dividend.

Trust Bank also obtained approval for a 5% stock dividend, having already recommended an 8% cash dividend for the same period. The lender reported a consolidated EPS of Tk3.38 and a NAV per share of Tk28.52 for the year. The record date for Trust Bank's dividend remains 11 June.

Trust Bank also obtained approval for a 5% stock dividend, having already recommended an 8% cash dividend for the same period. The lender reported a consolidated EPS of Tk3.38 and a NAV per share of

Tk28.52 for the year. The bank has scheduled 11 June as the record date for the stock dividend.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood Tuku on Friday (22 May) said the government will float an international tender next Monday for offshore oil and gas exploration, while an investment-friendly solar energy policy is expected to be unveiled by June.

Speaking at a policy symposium in Dhaka, he said the government is prioritising energy security through expanded exploration, structural reforms in the power sector and diversification into renewable energy sources.

Tuku said Bangladesh has not carried out meaningful offshore exploration for the past 17 years despite securing maritime boundary settlements.

"The last major offshore exploration initiative was undertaken in 1991 under the BNP government led by former prime minister Khaleda Zia, which later enabled ongoing gas production by Chevron," he said.

"We achieved victory in maritime boundary disputes, but we have yet to extract resources from the sea. To address this, we are floating an international tender for offshore exploration next Monday," he added.

The minister said the government is strengthening state-owned Bangladesh Petroleum Exploration and Production Company (Bapex) through the procurement of new rigs.

Acknowledging Bapex's lack of deep-sea drilling expertise, he said the company has been advised to participate in the upcoming tender through joint ventures with international oil companies to ensure Bangladesh retains a strategic stake in offshore resources.

Highlighting the government's clean energy agenda, Tuku said work is underway on solar, wind and waste-to-energy projects, with a new solar policy aimed at attracting investment expected by June.

He said high import taxes on battery storage systems remain a major obstacle for private investors in the renewable energy sector.

"The current tax structure on solar batteries is too high, discouraging investors. We are working with the finance ministry to resolve these tax and tariff issues," he said.

The government is targeting at least 5,000 megawatts (MW) of renewable energy generation by the end of its term, however, Tuku expressed hope that the figure could reach 10,000MW if implementation proceeds smoothly.

The world built and commissioned more coal power in 2025, but used the polluting fuel less, with the United States the only major economy to substantially increase generation, analysis showed Thursday.

Coal is a key contributor to planet-warming greenhouse gas emissions, and phasing it out is crucial to taming climate change.

The growing affordability and abundance of renewable energy means solar and wind power can now cover growing electricity demand in much of the world.

That helped push coal generation down globally by 0.6 percent in 2025 from a year earlier, according to a new report from Global Energy Monitor, which has tracked coal power for more than a decade.

But despite the generation drop, coal power capacity -- plants that came online or were commissioned -- jumped 3.5 percent last year.

The overwhelming majority of that -- 95 percent -- was in China and India, GEM said.

China’s coal capacity grew six percent last year, but coal-powered electricity generation fell 1.2 percent, in part because of soaring renewable capacity.

The same was true in India, where capacity grew almost four percent, even as generation fell nearly three percent.

In both countries, “many of the provinces and states leading coal development are major coal-producing regions”, said Christine Shearer, project manager of GEM’s Global Coal Plant Tracker and author of the report.

They have “strong industrial incentives to keep building coal”, she told AFP.

US ACTIVELY INCREASES COAL

China is the world’s top emitter, while India ranks third behind the United States.

Beijing sees coal as a reliable failsafe for intermittent renewable supply, particularly for after power shortages several years ago.

India, the world’s most populous country, is leaning heavily on coal to meet soaring electricity demand. But coal’s persistence is also the result of infrastructure issues.

Non-fossil fuels already account for 50 percent of India’s installed capacity, but infrastructure and other issues mean the country still generates around three-quarters of its electricity from coal.

Globally, the retirement of coal power also slowed last year, with nearly 70 percent of units that were due to end operations instead staying online, GEM said.

In Europe, those missed targets were linked primarily to decisions taken during the 2022-23 energy crisis caused by Russia’s invasion of Ukraine.

In the United States however, retirement delays were due to a government push for coal, said Shearer. “US coal-fired generation rose by more than 80 TWh (terawatt hours) year-on-year, a figure so large that no other country came close,” she said.

The surge “was not simply a function of (demand) growth, it reflected a policy environment that actively encouraged it,” she added.

COAL ‘FAVOURITISM’

The energy crisis sparked by the US-Israeli war with Iran has seen some countries turn back to coal, reactivating idle coal units or delaying retirements.

In China, coal-fired power generation also jumped in the first part of the year, in part due to “underperformance” by wind and nuclear.

“But the oversupply and favouritism of coal power is an important factor,” added Lauri Myllyvirta, co-founder of the Centre for Research on Energy and Clean Air, and contributor to the report.

While figures from May suggest China’s coal generation may have dropped again, “the problem of excess coal capacity and entrenched favouritism of coal in the grid remain”, he told AFP.

Globally, coal-fired generation has risen 0.3 percent so far this year, Shearer said, while wind and solar generation has jumped 10 percent.

“Clean energy is absorbing most of the world’s new electricity demand, with coal barely growing at all,” she said.

The government may reduce Advance Income Tax (AIT) at the import stage on primary and intermediary raw materials and other industrial goods from the existing 5% to 4%, in a move aimed at easing pressure on businesses and encouraging investment.

The upcoming budget may also introduce a provision allowing businesses to claim refunds of excess advance tax deducted after a specified period. Although the current system allows tax adjustment, most businesses fail to recover the excess tax due to various procedural complexities.

Sources related to the National Board of Revenue (NBR) budget process said the initiative is primarily intended to reduce the tax burden on businesses and improve working capital flow.

A senior NBR official, speaking to TBS on condition of anonymity, said, "Industries importing goods under Industrial Import Registration Certificates (IRC), which currently pay 5% AIT in certain cases, may see the rate reduced to 4%.

"If implemented, this will provide relief to industrial entrepreneurs and reflects the current government's investment-friendly approach."

Business leaders have welcomed the initiative but argued that the AIT rate should be reduced further, saying the current structure is inconsistent with tax justice principles.

Mir Nasir Hossain, former president of the Federation of Bangladesh Chamber of Commerce and Industries (FBCCI), told TBS, "Reducing AIT would be a positive decision, but it is still not enough."

Explaining his position, he said, "AIT is deducted at the import stage. A business first imports goods, adds value, sells products and only then generates income, at which point taxation should apply. Deducting tax before any income is earned is not logical."

Taskeen Ahmed, president of DCCI, also welcomed the initiative but said the AIT rate should not remain as high as 5%.

"AIT should be capped at a maximum of 2% because not all businesses generate the same level of income," he told TBS.

However, both business leaders acknowledged that the proposed reduction would have a positive impact on business and investment.

Under Bangladesh's existing income tax law, advance tax deducted at the import stage can later be adjusted against actual profits. Businesses with higher profits pay additional tax, while those with lower profits are entitled to refunds. However, businesses must submit extensive documentation to claim refunds, and even after doing so, the money often remains stuck for years. In some cases, legal procedures prolong the process even further.

As a result, many importers do not attempt to recover the money and instead add the cost to product prices.

An importer of escalators and electrical products, speaking anonymously, told TBS, "Getting AIT refunds is extremely difficult in practice. So we treat the amount as a business cost and add it to the price of products."

He added that if the government reduces the rate, it would lower business costs and ultimately help reduce costs for consumers as well.

Experts and economists have urged the government to use the national budget for the next fiscal year as a strategic instrument to revive economic growth while maintaining macroeconomic stability, warning that Bangladesh’s economy remains under severe stress amid persistently high inflation, sluggish private sector credit growth, and rising fiscal pressure.Economic trend analysis
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Speaking on Thursday, they said the country’s macroeconomic condition continues to be fragile, with inflation remaining elevated for an extended period, private sector credit growth dropping to a record low, and fears mounting over a possible fiscal shortfall in the upcoming fiscal year.

They also recommended undertaking robust reforms to create the conditions necessary for expansionary fiscal and monetary policies, alongside ensuring stronger discipline and accountability in economic management to secure the best value for public money.

These observations came at the launch of the Monthly Macroeconomic Insights report titled “Restoring Growth through Productivity Reforms: Pre-Budget Priorities”, prepared by the Center for Macroeconomic Analysis (CMEA) of the Policy Research Institute of Bangladesh.

Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), attended the event as the chief guest at the event at PRI office, while it was chaired by Zaidi Sattar, chairman of the PRI.

“The economy now stands at a crossroads. Growth has slowed significantly, investment momentum has weakened, inflation remains elevated, and vulnerabilities in the fiscal, financial, and energy sectors continue to constrain policy space,” said Zaidi Sattar at his opening remarks.

Macroeconomic stabilization alone will not be sufficient to restore high and sustainable growth, he said, adding that the economy now requires a new phase of productivity-enhancing reforms.Local investment guides

He proposed reforms in the fields of rationalizing gargantuan tariffs, revamping trade openness, improving the investment climate, reforming the energy sector, restructuring state-owned enterprises, promoting FDI, and investing in critical infrastructure.

Dr Ashikur Rahman, Principal Economist of PRI, presented the keynote at the event.

He said that a disciplined budget anchored in macroeconomic stability, combined with sustained productivity-enhancing reforms, remains the most credible pathway for restoring Bangladesh’s growth momentum in the current environment.

The economy is facing a tough crossroads with inflation still elevated, fiscal space increasingly compressed by rising interest payments, and financial sector vulnerabilities continuing to constrain effective credit transmission; the room for expansionary fiscal or monetary stimulus remains limited, he further stated.

Commerce Minister Khandakar Abdul Muktadir has announced that the government is undertaking regulatory overhauls to simplify business operations, including cutting down licensing times, ensuring consistent energy supply, and introducing structural exit routes for businesses.

The minister also said investment is the sole driver of job creation, which cannot be forced by laws or administrative decrees but must instead be supported by market-friendly policies.

He made the remarks while speaking at a policy symposium titled "Post-Uprising Economy & Geopolitics of Budget: Reminiscing the legacy of M Saifur Rahman" at a hotel in Dhaka today (22 May).

Muktadir, also the minister for industries, textiles and Jute, said, "To start a business in Bangladesh, an entrepreneur currently requires 25 to 26 licenses, taking an average of 350 days. This exhausts entrepreneurs before they even begin operations."

He stated that under the guidance of the prime minister, the government is drastically reducing these overlapping processes, with the changes becoming physically visible.

"As part of the reforms, the trade license issuance process – currently scattered across thousands of decentralised local government entities – will be centralised."

Additionally, the process for obtaining Import Registration Certificates (IRC) and Export Registration Certificates (ERC) will move entirely online, allowing entrepreneurs to download certificates digitally without visiting physical offices, he added.

The commerce minister also advocated for a fundamental shift in how the state views business failures.

Highlighting the lack of viable exit routes for struggling enterprises in Bangladesh, he called for bankruptcy frameworks similar to Chapter 7 or Chapter 11 insolvency codes used in developed nations.

"A business failure is not a criminal offense; it must be treated as a business issue. While willful default and money laundering must face the strictest punishments, genuine business failures should not be criminalised," he said.

Addressing the ongoing energy crisis, the minister noted that fuel shortages and weak policy implementation have left the country's installed industrial capacity underutilised, which costs the economy potential percentage points in GDP growth.

The government is actively working to ensure uninterrupted fuel supplies to production units, he assured.

Muktadir also raised concerns over high bank interest rates, which currently range between 13% and 15%. He pointed out that such rates are unsustainable for Bangladesh's labor-intensive, low-capital manufacturing sectors that operate on slim profit margins.

"To support these industries, the government, under the leadership of the finance minister, is planning to launch a scheme to provide off-shore funds at more tolerable interest rates," he said.

The government is considering setting tax rates in a more predictable framework – long sought by local and foreign investors – with the upcoming budget expected to outline rates for up to five years.

The rates introduced in last year's budget were set for a two-year period, covering FY2026-27 and FY2027-28. This means the upcoming budget will provide an indication of tax rates for the next five years.

An NBR senior official involved in tax policy formulation, speaking on condition of anonymity, told The Business Standard that businesses have long demanded a predictable tax regime.

He said investors and businesses want certainty over tax rates for at least three to five years to support long-term planning. "This year, we may be able to indicate tax rates for the next five years."

The idea of a predictable tax system has been a long-standing demand from both local and foreign investors. The Foreign Investors Chamber of Commerce and Industry (Ficci), the country's largest foreign investor lobby group, has repeatedly called for a stable and forward-looking tax framework.

Debabrata Roy Chowdhury, director of legal and corporate affairs at Nestlé Bangladesh, described the initiative as a welcome step. He said foreign investors have long argued that tax rates should remain stable for at least five years to support investment planning.

"If we can know the tax rates for the next five years, it would certainly be an investment-friendly move," he told The Business Standard.

Businesses typically face uncertainty ahead of national budgets due to frequent tax changes, some of which can also affect income and expenditure from previous fiscal periods.

Snehasish Barua, tax expert and managing director of SMAC Advisory Services Limited, said the move towards predictability is positive and reflects a key demand from the business community.

However, he cautioned that predictability alone may not be sufficient to attract investment. "If higher tax rates are locked in under a predictable system, it will not be investment-friendly.

Global trends show tax rates are declining, and higher rates could discourage foreign investment," he said.

Bangladesh's state-owned enterprises (SOEs) drained nearly Taka 882 billion from the national exchequer in a single year, emerging as one of the country's biggest fiscal risks, according to a World Bank study.
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The study report highlighted that the deteriorating financial condition of public enterprises has become "unsustainable" at a time when Bangladesh is already facing falling revenue collection, slower economic growth and mounting pressure on public finances, BSS reports citing a press release.Personal finance courses

It said the growing losses of SOEs are consuming resources that could otherwise be invested in healthcare, education and social protection.

The findings were presented today at a dissemination workshop on the report titled "Financial Performance and Fiscal Risk of SOEs in Bangladesh" held at Pan Pacific Sonargaon in the city.

The study was conducted under the project on strengthening public financial management for better service (SPFMS), with the support of the Policy Research Institute (PRI) of Bangladesh.

According to the study, non-financial SOEs incurred a combined adjusted loss of Tk 441 billion in FY2024, while total net fiscal transfers from the government, including subsidies and development funding, climbed to around Tk 882 billion, equivalent to 1.7 percent of GDP.

Tanvir Ghani, Investment and Capital Market affairs Special Assistant to the Prime Minister, attended the workshop as the special guest.

Suraiya Zannath, Lead Governance Specialist, and team leader (SPFMS) WB, explained the context and objectives of the study and how the analysis will help frame policy and institutional reform.

Hasan Khaled Foisal, Additional Secretary, FD, delivered a presentation on the overview of SOEs, debt management and the macro-fiscal scenario, while Rahima Begum, Additional Secretary, FD, made the opening presentation highlighting the Public Financial Management Reform Strategy 2025-2030 relating to SOEs.

Henri Fortin, Lead Public Sector Specialist, WB, discussed international experiences of SOE reform and Immanuel Frank Steinhilper, Senior Governance Specialist, WB, presented global trends relating to SOEs.Economic trend analysis

Dr. Khurshid Alam, Executive Director, PRI, delivered the keynote presentation on the financial performance and fiscal risks of Bangladesh's SOEs.

The session was conducted by Mohammad Atikuzzaman, Sr. FMS, while Nazmus Sadat Khan, Economist, WB, delivered the closing remarks.

The study found that the energy and power sector accounted for the overwhelming majority of the losses.

The Bangladesh Power Development Board alone recorded losses exceeding Tk 444 billion in FY2024 due to high power generation costs, costly capacity payments to private power producers and electricity tariffs kept below production costs.

The report said politically influenced investment decisions, controversial contracts with independent power producers and weak corporate governance have severely undermined the sector's financial sustainability.

Other major loss-making entities include the Bangladesh Oil, Gas and Mineral Corporation, Bangladesh Rural Electrification Board, Trading Corporation of Bangladesh and several manufacturing corporations in the fertilizer, sugar and jute sectors.

The report observed that many manufacturing SOEs continue to incur persistent losses despite operating in competitive markets where private firms remain profitable. Local investment guides

The report also highlighted deep corporate governance weaknesses within Bangladesh's SOE structure.

It identified fragmented laws, bureaucratic control, weak oversight and lack of financial transparency as key reasons behind poor performance.

The report compared Bangladesh unfavorably with regional peers. While Bangladesh's SOEs posted a negative return on assets of 5.2 percent in FY2024, India's SOEs generated a positive return of 9.7 percent and Vietnam's recorded around 11.9 percent in recent years.

According to the study, Bangladesh could potentially mobilize more than Tk 1.2 trillion in additional fiscal resources if SOEs achieved a 10 percent return on assets and reduced their dependence on subsidies.

To address the crisis, the report recommended wide-ranging reforms, including restructuring commercially viable SOEs, introducing independent and professionally managed boards, strengthening financial disclosure requirements, reducing political interference and gradually opening monopoly sectors to competition.

It also suggested eventual privatization or closure of chronically loss-making enterprises that no longer serve strategic national purposes.

Oil prices gained more than 1 percent on ​Thursday, paring previous losses as investors monitored peace talks between the United States and Iran, while ‌supply tightness and US inventory drawdowns provided some support.

Brent crude futures rose $1.27, or 1.21 percent, to $106.29 a barrel by 0618 GMT, and US West Texas Intermediate futures were up $1.29 cents, or 1.31 percent, at $99.55.

Both benchmarks dropped more than 5.6 percent on Wednesday to their lowest in ​more than a week after President Donald Trump said talks with Iran were in the final stages, but ​also threatened further attacks if Tehran did not agree to a peace deal.

“The oil market remains overly sensitive to Iran-related headlines, with participants continuing to pin considerable hope on reports that talks ​between the US and Iran are progressing,” ING analysts said in a note on Thursday.

“We’ve been in this ​situation multiple times before, which ultimately led to disappointment,” they added, forecasting an average Brent price of $104 a barrel in the current quarter.

Iran warned against further attacks and unveiled steps entrenching its control of the crucial Strait of Hormuz, mostly closed, though before ​the war it had carried oil and liquefied natural gas shipments equal to about 20 percent of global consumption.

On ​Wednesday, Iran announced a new “Persian Gulf Strait Authority,” saying there would be a “controlled maritime zone” in the Strait of Hormuz.

Iran ‌effectively closed the strait in response to the US and Israeli attacks that started the war on February 28. Most of the fighting has stopped since an April ceasefire, but while Iran is limiting traffic through Hormuz, the US has blockaded its coastline.

Supply losses from the key Middle Eastern producing region because of the war have forced ​countries to pull from their ​commercial and strategic inventories ⁠at a rapid rate, raising concerns about draining them.

The US Energy Information Administration said on Wednesday the country withdrew nearly 10 million barrels of oil from its Strategic Petroleum ​Reserve last week for its biggest drawdown on record.

Underlining the impact of the ​supply disruptions in ⁠was EIA data showing a bigger-than-expected decline in US crude oil inventories last week.

“The drawdown in oil inventories will make it difficult for oil prices to remain low,” said Mingyu Gao, chief researcher for energy and chemicals at China Futures.

“With ⁠the ​Strait of Hormuz blocked, global refined-product and onshore crude inventories are ​expected to fall below their lowest levels for this time of year in the past five years by late May and late June.”

Bangladesh expects an off-the-cuff US$1.835-billion financing from the World Bank for use before the close of the current fiscal year to cushion the economy against mounting external shocks, sources say.Local investment guides
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Of the amount, the financier has proposed an emergency financing fund worth up to $250 million for Bangladesh government to tackle fiscal pressures stemming from the ongoing Middle East conflict.

The proposed emergency Investment Project Financing (IPF) would be financed through the reallocation of cancelled and uncommitted funds from five of ongoing or closing projects.

The projects include the Resilience, Entrepreneurship and Livelihood Improvement Project, Dhaka City Neighborhood Upgrading Project, Bangladesh Road Safety Project, Bangladesh Environmental Sustainability and Transformation Project, and Jamuna River Sustainable Management Project-1.

The proposed IPF is expected to be placed before the World Bank Board for approval by June 29, 2026, with disbursement likely to begin the following day, according to officials familiar with the developments.

The multi-sector package, now in an advanced stage of preparation, is intended to support macroeconomic stability, strengthen fiscal resilience, and ensure continuity in key financial-and energy-sector operations.

The government has made significant progress in advancing the FY26 financing pipeline following discussions held during the WB Group and IMF Spring Meetings, according to a recent letter addressed to the government.

The letter complements earlier correspondence dated May 5, 2026.Emerging market research

"We are pleased to observe significant progress on the FY26 pipeline thanks to the leadership of the Minister of Finance and Planning," the letter reads.

The letter mentions: "In sum, up to u$1.835 billion can be processed before the end of FY26."

According to an official communications between the WB and the Economic Relations Division (ERD), the financing programme combines emergency liquidity support with medium-term structural assistance.

The largest component of the package is up to $785 million under the Contingent Emergency Response Component (CERP) Rapid Results Option.

The government has already appointed a project director within the Finance Division and completed the omnibus amendment needed to repurpose funds from host projects for emergency expenditures.

The government is now preparing the CERP activation package, including a crisis action plan and procurement framework, to facilitate rapid fund utilisation.

Another major component is the Financial Sector Support Project-II worth US$450 million, aimed at strengthening financial-sector stability and reform initiatives.

Negotiations on the project concluded on May 11, with minutes signed the following day.Maps

An official says Bangladesh Bank (BB) has sought an additional $50-million allocation as the Deposit Protection Fund has already utilised around 90 per cent of its existing resources.

An addendum to the negotiation minutes is currently under preparation following approval from the finance and planning adviser, keeping the project on course for WB Board approval by June 23.

The pipeline also includes $350 million in additional financing for the Energy Sector Security Enhancement Project to help absorb global fuel-price volatility and support energy-supply security.

A high official concerned says the government has already provided feedback on the project paper and indemnity agreement, while the WB submitted the final project paper for senior management clearance on May 12.

The WB has stressed the need for parallel implementation measures to ensure timely release of the funds before the end of FY2025-26.

Under the proposed arrangement, the Finance Division will deploy experienced officials in procurement, financial management and safeguard compliance to meet the accelerated processing timeline, according to a senior official concerned.