This is the third time Ayesha Boutique, a well-known business from Mirpur Benarasi Palli, has showcased Benarasi saris and traditional clothing at the China–South Asia Expo in Kunming, Yunnan Province.

“We received a very good response at the previous two editions of the expo,” said the boutique’s Managing Director Nasimuddin, adding that buyers from markets such as Hong Kong had shown interest.

Like Ayesha Boutique, other Bangladeshi businesses used the six-day 10th China–South Asia Expo, which began on June 11 at the Dianchi International Convention and Exhibition Centre, to present their products while aiming to expand beyond traditional markets, connect with global buyers, and build stronger international brands.

The event brought together participants from 68 countries, regions and international organisations, including more than 560 South Asian companies targeting China’s large consumer market and wider trade opportunities.

Bangladesh recorded its largest-ever participation, with 101 companies and 175 representatives attending as the theme country, giving local businesses strong visibility.

Across the Bangladesh pavilion, companies from fashion, leather, pharmaceuticals and handicrafts highlighted a growing shift towards markets beyond domestic and traditional export destinations.

However, communication remained a challenge for many exhibitors. “Language is one of the biggest barriers in connecting with buyers,” said Nasimuddin.

To address this, his son Arif Rana joined him at the event. “I use translation apps to communicate with buyers. It has made things much easier,” Rana said.

The experience showed how translation tools are helping smaller Bangladeshi businesses overcome language barriers and reach global markets more effectively.

This reporter, attending the expo on an invitation extended to The Daily Star by the International Communication Centre for South and Southeast Asia, spoke with around a dozen Bangladeshi businesses taking part.

BUSINESS EXPANSION GOALS

For many companies, the expo served as a strategic platform for expansion.

“The main purpose is to introduce Armadea to global clients and establish direct communication with buyers, as we are increasingly focused on exports,” said Alauddin Sohel, owner of Armadea, a Hemayetpur-based leather goods manufacturer producing bags, wallets, belts, jackets and gloves.

Corium Bangladesh, a leather footwear and accessories maker, also joined with similar goals.

“We mainly export to Europe and supply corporate buyers,” said founder Shakil Ahmed. “Sourcing foreign customers and business expansion are key goals here.”

The pharmaceutical companies used the expo to explore new partnerships. Belsen Pharmaceuticals displayed its range of cardiac, gastric, dental and calcium-related treatments. “We want to connect with foreign partners and explore possible partnerships with Chinese investors and others,” said Nairita Nahrin Barisha, assistant chief marketing officer of the company.

“We want to create stronger connections between Bangladesh and China to produce better medicines,” she added.

Bangladesh’s retail giant Aarong took part in the expo for the first time, showcasing items ranging from handcrafted brass rickshaws to clothing and lifestyle products.

“We want to introduce our products to international visitors and better understand the Chinese market,” said Mohammad Minhaz Uddin, assistant general manager of Aarong. Sustainable Bangladesh, a natural fibre-based products company, returned after strong demand last year.

“We mainly export to European markets,” said proprietor Rafi Sarjil. “But last year we saw strong local sales in Kunming, which encouraged us to bring a much larger product range this year.”

STRENGTHENING ECONOMIC DIPLOMACY

Bangladesh’s participation went beyond business, as policymakers also used the platform to strengthen economic diplomacy with China.

The expo was inaugurated by Commerce, Industries, Textiles and Jute Minister Khandakar Abdul Muktadir alongside Yunnan Governor Wang Yubo.

Muktadir reaffirmed Bangladesh’s commitment to stronger bilateral ties based on mutual respect, sovereignty, equality and shared prosperity. “The government is sincere in building sustainable relations that deliver tangible benefits for the people of both countries,” he said.

He added, “Today is a special day for us as we celebrate ‘Bangladesh Day’ in the hospitable and warm city of Kunming,” calling it a symbol of growing friendship and trust between the two countries.

Referring to “Destination Bangladesh -- A Unique Land of Potential,” he said it is more than a slogan and serves as an invitation for global investors and business leaders to engage with Bangladesh’s growing economy.

A parliamentary delegation led by Deputy Speaker Barrister Kayser Kamal also visited the expo, calling for stronger bilateral cooperation and increased Chinese investment in infrastructure and strategic sectors.

Bangladesh’s participation was recognised with six awards in four categories. The Export Promotion Bureau received the “Outstanding Exhibition Organiser” title, while Aarong, Sustainable Bangladesh and Clay Image were named Best Exhibitors. Bangladesh also won awards for Best Pavilion and Best Booth Design.

When a managing director or chief executive officer of a bank applies to resign, the Bangladesh Bank (BB) is supposed to call them for a hearing before taking a final decision, as per the existing regulations.

However, in more than a year up to this month, more than a dozen managing directors and chief executive officers of private commercial banks have resigned or been terminated. In many of these cases, personal hearings were not held by the banking regulator.

This has raised a key question: while rules exist to protect bank executives from leaving under internal pressure, are they being properly enforced?

Take the case of Kimiwa Saddat, who resigned as acting managing director of Community Bank Bangladesh PLC on May 6, citing personal reasons. His departure came before he was formally confirmed in the full-time role.

Contacted, he told The Daily Star that the central bank had not called him regarding the matter till yesterday.

There have been media reports suggesting he resigned amid pressure from the board of directors at the bank owned by the Bangladesh Police Welfare Trust. However, Saddat did not confirm the claims.

When asked whether there was any pressure behind his resignation, he said, “I do not know much about it. A member of the board had hinted at it. I resigned citing personal reasons to preserve my own dignity.”

Unlike Saddat’s case, the resignation of Md Omar Faruk Khan, managing director of Islami Bank Bangladesh PLC, drew widespread attention.

Khan resigned on May 24, a day before the country entered a nearly week-long Eid holiday. At the time, he was on one and a half months of leave.

On the same day, the bank’s chairman and independent director, M Zubaidur Rahman, also stepped down. The BB later appointed Md Khurshid Alam, a former BB deputy governor, as chairman of Islami Bank.

The leadership changes triggered protests from customers and disrupted operations for around two weeks. The issue was also debated in parliament between members of the ruling party and the opposition.

The central bank eventually dissolved the entire board, including the chairman. Protesters under the banner of the customers’ forum alleged that the regulator had forced the managing director and chairman to resign. However, BB denied the allegation.

Nearly a month after Khan’s resignation, the central bank had not called him for a hearing, according to BB officials speaking on condition of anonymity.

The Daily Star tried to reach Khan by phone until the filing of this report yesterday, but he did not respond.

NOT ALL RESIGNATIONS LINKED TO PRESSURE CLAIMS

Not every departure in the past one year has been linked to allegations of internal pressure.

Some executives said they left to take up roles at other banks, while others said they were contacted by the BB after resigning.

Selim RF Hussain resigned as managing director of BRAC Bank in May last year. He told The Daily Star that the central bank contacted him after his resignation.

In February this year, Hassan O Rashid, chief executive officer of Prime Bank, resigned to join Eastern Bank as its managing director.

Earlier, in August last year, Sheikh Mohammad Maroof, managing director of Dhaka Bank, resigned citing personal reasons. He told The Daily Star that Bangladesh Bank had called him regarding his resignation.

Separately, several managing directors and chief executive officers, including those at Premier Bank, First Security Islami Bank, EXIM Bank, Union Bank and Global Islami Bank, were placed on forced leave and later terminated.

Arief Hossain Khan, executive director and spokesperson of the BB, said the regulator usually calls managing directors for a hearing when they resign.

However, he said he was not aware whether the managing directors of Community Bank and Islami Bank had been called.

RULES EXIST, BUT DOUBTS REMAIN

The BB introduced a policy in 2014 on the appointment and responsibilities of chief executives of banks. It was followed by a master circular in 2024.

According to the guidelines, if a managing director or chief executive officer resigns before completing their contract, the application must be forwarded to the BB with the board’s recommendation.

A high-level BB committee is then required to hold a personal hearing with the concerned official before making a recommendation. The central bank takes a final decision based on that recommendation.

Speaking on condition of anonymity, a senior managing director of a private commercial bank said the MD sits at the centre of a bank’s operations, while the board sets policy.

“Any proposal that requires the board’s approval must be presented by the MD. Once an agenda is approved by the board, the responsibility for its implementation also falls on the MD. As a result, the relationship between the board of directors and the MD often becomes a mix of cooperation and tension.”

He said this tension often leads to pressure on managing directors to resign.

He added that despite existing regulations, the BB is not effectively safeguarding senior executives.

Toufic Ahmad Choudhury, former director general of the Bangladesh Institute of Bank Management (BIBM), said boards of many banks place heavy pressure on management and managing directors.

“As a result, if an MD does not comply with the board’s wishes, he or she may be removed or forced to resign.”

He said the central bank needs stronger safeguards to protect MDs, but added that institutional independence is also essential. “A weak central bank cannot effectively safeguard MDs. This is precisely why greater autonomy for the central bank is essential.”

Bangladeshi garment manufacturers have the potential to export $100 billion worth of apparel by the end of 2030 if they are ensured an adequate supply of gas and electricity and benefit from simplified business regulations.

Industry leaders say reaching $100 billion in exports is not a formal target but a realistic possibility as global demand for apparel continues to grow and supply chains return to normal.

However, they stress that achieving such growth will require uninterrupted energy supplies, as many factories are currently operating below capacity due to gas and power shortages.Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), made the comments to The Daily Star after an annual general meeting of the trade body.Moreover, the BGMEA will work with the government to simplify customs procedures and reduce delays in export and import processes in order to enhance Bangladesh's competitiveness in the global supply chain, Khan said.

Auditing takes a long time in Bangladesh, and this period should be shortened to make businesses more competitive in the post-LDC era, as maintaining competitiveness will be crucial for Bangladesh in the global supply chain after graduation from the least developed country (LDC) category, he added.

The government has already allocated Tk 20,000 crore for reopening closed factories, and the BGMEA has been collaborating with the government by providing information on shuttered production units so that they can access the fund, the BGMEA president also said.

At the meeting, members also raised concerns about faulty clauses in the Bangladesh National Building Code, which have created difficulties for many factories.

BGMEA leaders expressed their willingness to work with the government to find a solution to these problematic clauses.

Bangladesh Bank Governor Mostaqur Rahman has directed banking supervisors to adopt a zero-tolerance approach towards violations of banking laws and regulations, instructing them to take the toughest possible action against non-compliant banks.

The directive was issued during a meeting today (20 June) between the governor, two deputy governors, executive directors and directors of departments responsible for bank supervision at the central bank.

According to meeting sources, the governor instructed officials to play the strictest possible role in supervising banks and ensuring compliance with regulatory requirements.

Mostaqur said Bangladesh Bank should show no leniency in cases where banks violate laws or regulatory provisions and should instead follow a zero-tolerance policy in dealing with such offences.

The governor also instructed officials to impose the maximum penalties permitted under relevant laws whenever violations are identified.

The governor emphasised the importance of effective bank supervision and directed supervisory departments to closely monitor whether banks are complying with all applicable rules and regulations.

Mostaqur also instructed officials to keep him regularly informed about the latest developments in the banking sector and the actions taken against irregularities through periodic meetings involving directors, executive directors and deputy governors overseeing bank supervision.

Bangladesh has scrapped the long-standing cap on foreign ownership of inland container depots (ICDs) and off-dock facilities, a move aimed at attracting greater foreign direct investment into the country's expanding logistics and port sectors.

The measure, announced by Finance Minister Amir Khosru Mahmud Chowdhury during the presentation of the national budget on 11 June, will take effect from 1 July. It will allow foreign investors to own 100% of private ICD and off-dock operations.

Industry stakeholders have largely welcomed the decision, describing it as a positive signal for international investors. However, they cautioned that removing ownership restrictions alone may not be enough to attract substantial foreign investment.

The decision marks a major policy shift for Bangladesh's logistics industry. Until now, foreign operators could enter the sector only through joint ventures with local partners holding majority stakes. Under the new framework, international companies will be able to establish and operate facilities independently.

The government expects the move to encourage fresh investment in logistics infrastructure as Bangladesh prepares for higher export volumes and increasing cargo traffic in the coming years.

According to the Bangladesh Inland Container Depots Association (Bicda), the country currently has 24 privately operated ICDs, several of which already have foreign participation through joint venture arrangements. These facilities have a combined storage capacity of 1,06,000 twenty-foot equivalent units (TEUs) and can handle around 90,000 export containers, 50,000 import containers and 60,000 empty containers each month.

Three more ICDs are in the pipeline and are expected to begin operations this year or next.

Global port and logistics operators, including DP World, Medlog, Red Sea Gateway Terminal (RSGT), APM Terminals and PSA Singapore, have either invested in or expressed interest in Bangladesh's ports, terminals and off-dock businesses.

Operational efficiency key to attracting investors

Ruhul Amin Sikder, secretary general of BICDA, said the ownership cap had been introduced primarily to protect local investors who developed the sector over nearly two decades.

"Opening the sector to 100% foreign ownership changes the investment landscape. But removing the cap does not automatically mean foreign investors will come," he told TBS.

According to him, Bangladesh must address several operational bottlenecks before expecting significant foreign participation.

"Investors will look at operational efficiency first. Challenges at Chattogram Port, transportation bottlenecks and communication infrastructure need to be improved," he said.

He also pointed to the slow pace of digitalisation in logistics operations, noting that many processes remain manual despite years of reform efforts.

Ruhul further highlighted concerns regarding tariff-setting mechanisms, arguing that investors need confidence that they can earn sustainable returns on long-term investments.

"These are capital-intensive investments. Foreign investors will assess whether there is a stable and predictable return environment before making commitments," he added.

He noted that three to four additional ICDs are expected to become operational within the next two years, significantly boosting container-handling capacity. Together with the existing facilities, these depots are expected to meet the country's ICD demand through 2030.

Technology transfer, productivity gains expected

Zafor Alam, a former member of the Chattogram Port Authority, said greater foreign participation could significantly improve operational performance.

"International operators bring modern technologies, digital systems and management expertise that can improve overall efficiency," he said.

According to Zafor, the entry of global logistics firms would also create opportunities for technology transfer and workforce development.

"They will bring advanced IT systems, training programmes and international best practices. Local workers will gain valuable skills and experience from working alongside global operators," he said.

However, he stressed the need for uninterrupted power supply and a skilled workforce to support foreign investment.

"These are among the key factors foreign investors consider when selecting investment destinations," he added.

Zafor also suggested that future agreements with foreign operators should include provisions for training and employing local workers to maximise long-term benefits for Bangladesh.

Part of broader FDI strategy

The removal of foreign ownership restrictions forms part of the government's broader strategy to attract FDI and strengthen Bangladesh's trade-support infrastructure ahead of its graduation from least developed country (LDC) status.

Policymakers expect increased foreign participation to help expand logistics capacity, improve service quality and enhance the country's competitiveness as an export destination.

Industry observers say the reform removes a major barrier that had discouraged some international operators from entering Bangladesh's ICD sector. However, they note that infrastructure improvements, regulatory predictability and operational efficiency will ultimately determine whether the country can translate policy liberalisation into meaningful investment inflows.

The government has taken an initiative to attract domestic and foreign investment by making use of the land and infrastructure of state-owned enterprises that are closed, loss-making or no longer operational.

As part of this, Prime Minister Tarique Rahman yesterday met prominent industrialists and business leaders and assured them of full government support for reviving underperforming state-owned factories.

He said the government was committed to removing obstacles and creating a more business-friendly environment, reports UNB.

“We just want you to grow further, and we want to help you by providing all necessary support,” he told the meeting, jointly organised by the Ministry of Industries, the Ministry of Textiles and Jute, and the Bangladesh Investment Development Authority (Bida) at the Prime Minister’s Office in Tejgaon, according to PM’s Deputy Press Secretary Hasan Shiplu.

Addressing entrepreneurs, the prime minister said the government wants businesses to expand and contribute more to the country’s economic growth.

“I have said before that we want you to move forward. You have raised a number of issues and shared your views on how the government can support you in addressing them within a short period. We have already started working on some of these matters,” Shiplu quoted Tarique Rahman as saying.

The prime minister said it is the responsibility of an elected government to remove barriers and help create solutions, but acknowledged that progress would take time. “The reality is that we cannot solve all problems at once. But we can address them gradually,” he said.

At the meeting, chairmen of five state-owned corporations, including the Bangladesh Chemical Industries Corporation (BCIC), Bangladesh Sugar and Food Industries Corporation (BSFIC), Bangladesh Steel and Engineering Corporation (BSEC), and Bangladesh Textile Mills Corporation (BTMC), shared plans to transform factory sites into economic zones, technology parks, agro-processing centres and high-tech industrial hubs.

Investors and business leaders were presented with details of 44 factories, including their locations, existing infrastructure, investment facilities, transport links and potential for expansion.

Business leaders later took part in an open discussion on investment-related issues, raising around 50 questions that were answered by the relevant authorities.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury; Commerce, Industries and Textiles and Jute Minister Khandakar Abdul Muktadir; Economic and Planning Affairs Adviser Rashed Al Mahmud Titumir; Posts, Telecommunications and Information Technology Adviser Rehan Asif Asad; Bida Executive Chairman Ashik Chowdhury; Bangladesh Bank Governor Mostaqur Rahman; and Principal Secretary ABM Abdus Sattar were present.

PRAN-RFL Group Chairman and CEO Ahsan Khan Chowdhury, Kazi Farms Limited Managing Director (MD) Kazi Zahedul Hasan, Meghna Group of Industries Chairman and Managing Director Mostafa Kamal, Transcom Group CEO Simeen Rahman and Head of Transformation Zaraif Ayat Hossain, ACI Limited MD Arif Dowla, BRAC Enterprises MD Tamara Hasan Abed, Nabil Group of Industries Managing Director and CEO Md Aminul Islam, Akij Venture Group Chairman SK Shamim Uddin, and Square Food & Beverage CEO Parvez Saiful Islam, among others, attended the meeting.

Representatives from several Japanese companies and organisations, including Marubeni Corporation, Toyota Tsusho Corporation, Sumitomo Corporation, MUFG Bank Limited, Mitsui & Co. (Asia Pacific) Pte Ltd, Sojitz Asia Pte Ltd, JETRO Bangladesh and the Embassy of Japan in Bangladesh, also joined the programme.

Speaking to The Daily Star, Ahsan Khan Chowdhury, chairman and CEO of PRAN-RFL Group, said there is scope for billions of dollars in investment if dormant state-owned industrial units are revived and put to productive use.

He said discussions focused on how underutilised and loss-making state-owned enterprises could be brought back into economic activity. “We discussed what kinds of investments could be made and what product lines these facilities could support.”

The presentations included factories under BCIC, BSFIC, BTMC, BSEC and other state-owned entities.

Chowdhury said the prime minister appeared keen to encourage investment in agriculture and agro-based industries. “For a country like Bangladesh, where land is scarce and access to capital remains limited, making use of existing industrial infrastructure can significantly accelerate industrialisation,” he said.

“Many of these factories were established decades ago and would require modernisation and rehabilitation. But the land is already developed, and basic infrastructure is in place. If investment comes in, the scale could be substantial,” he added.

Simeen Rahman, group CEO of Transcom Group, described the initiative as “highly encouraging”, saying it demonstrates the prime minister’s commitment to providing policy support for investors.

“If closed and sick factories are revived, employment opportunities will be created, exports will rise, and the entire country will progress,” she said.

She said the prime minister’s support is not limited to agriculture. Investors interested in sectors such as pharmaceuticals, light engineering and electric vehicles would also receive government support.

“We are very optimistic that this kind of initiative by the prime minister will bring about something good for the country,” she added.

Mostafa Kamal, chairman and managing director of Meghna Group of Industries, welcomed the move. “It is a very good initiative. The prime minister listened to us with patience. It is good for us that we can share our issues with him directly.”

Md Aminul Islam, managing director and CEO of Nabil Group of Industries, said businesses have been assured of maximum policy support from the government. “We have expressed our interest in Setabganj Sugar Mill and Rajshahi Sugar Mill at the meeting,” he said.

Bangladesh has been experiencing high inflation for a prolonged period, pushing people’s endurance to its limits, analysts said at an event yesterday.

The prolonged inflation has significantly affected people’s lives. In this reality, many young people are taking on multiple jobs. Some are even working three jobs to cope, they added.

They spoke at a budget analysis event organised online by the Power and Participation Research Centre (PPRC).

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

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

Farah Kabir, country director of ActionAid Bangladesh, said prices of goods have remained elevated for several years.

“If you ask small and medium-sized business owners, they will tell you that business is not doing well,” she said.

The country’s overall situation cannot be judged solely by looking at Dhaka. Dhaka is like a balloon -- much of what is seen here is artificial, she said.

Even tea stalls remain open at midnight. When around 2 crore people live in such a limited space, this is to be expected. Overall, people across the country are not doing well, she said.

The proposed budget includes reductions in duties and taxes on a range of essential commodities. As a result, prices have remained largely stable following the budget announcement, said Muhammad Abdul Majid, a former chairman of the NBR.

According to him, the current prices of essential goods are likely to remain unchanged if these tax concessions continue.

Majid emphasised that political commitment will be crucial to achieving the intended outcomes. Simply announcing tax and duty reductions is not enough, he said.

Policymakers must also ensure that the measures are properly implemented and that consumers ultimately benefit from them, he added.

Hossain Zillur Rahman, executive chairman of the PPRC, said the country has social protection programmes aimed at supporting low-income groups. However, he raised concerns about the budget’s implications for the middle class.

Although the tax-free income threshold has been increased, higher tax rates have offset part of that benefit. Consequently, those who pay income tax are likely to see only limited relief, he added.

He also said the proposed budget reflects the new government’s commitment to easing public hardship, boosting economic growth and pursuing key reforms. It places special emphasis on social sector spending, and its objectives have been widely viewed as positive.

Nevertheless, concerns persist over the feasibility of the spending plans, given that revenue collection has repeatedly fallen short of target. This raises questions about how the government will fund its ambitious expenditure programme, he added.

Md Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association, warned that rising government borrowing from banks could crowd out credit available to the private sector.

He further stressed that improvements in energy security, overall stability and reforms in the banking sector are essential to encourage higher private investment.

Brent crude ticked higher on Friday, but stayed set for a weekly fall of around 8 percent, after Israel and Hezbollah agreed on a ceasefire in Lebanon but Iran set conditions for using the vital Strait of Hormuz.

Brent crude futures were up 66 cents, or 0.53 percent, at $80.38 a barrel by 1:30 p.m. ET, while US West Texas Intermediate crude was up 94 cents, or 1.23 percent, at $77.54 per barrel. Trading volumes were light due to a US federal holiday.

Gulf producers were preparing to raise exports after Israel and Hezbollah agreed to a ceasefire which began at 4 p.m. local time (1300 GMT) on Friday. At least four tankers carrying crude, oil products and liquefied petroleum gas entered the Strait of Hormuz on Friday, heading for Iraqi Gulf ports, MarineTraffic data showed.

Despite the uptick in activity, however, Iran signalled tighter control over shipping, with state TV reporting that vessels must coordinate transit with the Revolutionary Guards navy. In an undated advisory circulated to the maritime industry in the last 24 hours and seen by Reuters, Iran’s Persian Gulf Strait Authority said “no vessel is permitted to pass through the Strait of Hormuz without a valid passage permit issued by the PGSA”.

Concerns around Iran’s conditions for using the strait helped push oil prices higher on Friday, said Rory Johnston, founder of the Commodity Context newsletter. “The market was pricing in a deal and pretty seamless execution, and that doesn’t seem to be what we’re getting thus far,” Johnston said.

In spite of Friday’s gains, Brent was down about 8 percent week-over-week, reflecting a significant easing of supply concerns in the wake of the US-Iran deal to end the war. “Though (oil prices) haven’t got to the point to where they were before the war started, it looks like we’re headed in that direction,” said Phil Flynn, senior analyst with Price Futures Group, adding more supply is expected to flow in coming days.

“The backlog of ships can move quicker than some people think and if there’s cooperation between Iran and the US, it can move quite quickly,” Flynn added.

A planned meeting between Iranian and US officials in Switzerland on Friday has been postponed, with arrangements underway for talks in the coming days, Iran’s Foreign Ministry said on Friday. The ministry said the meeting was no longer urgent because a memorandum of understanding on ending the war had already been signed digitally between the two sides. Analysts expect the deal to release more than 85 million barrels of oil stranded in the Middle East Gulf into global markets. The agreement also includes the lifting of US sanctions on Iranian oil, which would add more supply.

Around 20 percent of global oil and LNG supply transits Hormuz, but recovery in flows and production after the US-Iran deal could take several months. Citi said its base case, with a 60 percent probability, sees sustained normalisation in flows, with oil markets moving into surplus and prices trending lower over the next six to 12 months to around $60 to $65 per barrel by the first quarter of 2027.

Commerzbank said oil supply should gradually recover, lowering its Brent forecast to $80 a barrel by year-end from $85, while expecting prices to remain above pre-war levels for most of the coming year.

Iraq’s oilfields are ready to resume production and output will gradually return to normal, restoring previous rates, Oil Minister Basim Mohammed said.

On the demand front, world demand will rise to 113.3 million bpd in 2030 from 105.1 million barrels per day in 2025, OPEC said in its 2026 World Oil Outlook.

The International Business Forum of Bangladesh (IBFB) has termed the proposed national budget for fiscal year 2026-27 a positive and pragmatic roadmap for economic recovery, investment expansion, employment generation and long-term structural reforms.
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The business body made the observation at a press conference titled 'Proposed Budget 2026-27: Expectations and Outcomes' held at the National Press Club in Dhaka on Thursday.

Speaking at the event, IBFB President Lutfunnisa Saudia Khan said the budget's emphasis on investment, industrialisation, small and medium enterprise (SME) development, support for women and young entrepreneurs, expansion of the digital economy, greater use of renewable energy and an increase in the tax-free income threshold sends a positive signal for businesses and job creation.

She said successful implementation of these initiatives would help attract both domestic and foreign investment, create new employment opportunities and accelerate economic growth.

However, she underscored the need for effective measures to address challenges, including ambitious revenue targets, inflationary pressure, weaknesses in the banking sector and constraints in implementation capacity.

The IBFB reiterated its recommendations for full digitalisation of tax administration, structural reforms of the National Board of Revenue (NBR), improving the ease of doing business, expanding SME financing, attracting foreign investment, developing the capital market and ensuring policy continuity.Economic policy analysis

Former NBR chairman Dr. Muhammad Abdul Mazid, who attended the event, said unnecessary expenditures should be curtailed in the budget and institutional capacity strengthened to ensure effective implementation.

He also stressed that public aspirations should be reflected in the national budget.

Responding to a question on the revenue target for FY27, Dr. Mazid said achieving the target might be difficult given the revenue shortfalls recorded in recent fiscal years.

He, however, noted that if the banking and capital market sectors become more vibrant and stronger, revenue collection in FY27 could significantly exceed previous years' levels.

He emphasised that policy continuity and predictability are essential for maintaining an investment-friendly environment and ensuring long-term economic stability.

The IBFB said that with effective implementation, good governance and necessary reforms, the FY27 budget could strengthen the foundation for higher economic growth, increased investment and sustainable development in Bangladesh.

Former IBFB president Humayun Rashid, IBFB Life Member and Director M.S. Siddiqui and Vice President Utpal Kumar Das were present at the press conference.

Conventional banks outperformed Islamic banks in deposit collection, investment, and asset growth over the past year, mainly due to instability in the Islamic banking sector following the July 2024 uprising.

According to a recently released report by the Bangladesh Bank, deposits in conventional banks rose from Tk 15.22 lakh crore in April 2025 to Tk 17.16 lakh crore in April 2026, marking a year-on-year growth of 12.73 percent.

In contrast, deposits in Islamic banks increased from Tk 4.41 lakh crore to Tk 4.81 lakh crore over the same period, showing a moderate growth of about 8.98 percent.

“This steady growth in deposits in conventional banks can be primarily attributed to an unstable situation in the Islamic banking sector after the July 2024 uprising, which shifted depositor confidence towards conventional banks,” the BB report said.

The report added that following the July uprising, BB’s measures -- such as providing liquidity support, identifying weaknesses in banks and appointing administrators to improve management -- may help restore depositor confidence.

It also found that depositors mainly rely on Mudaraba-based deposits, which account for around 87.21 percent of the Islamic banking deposit base. As of April 2026, the deposit base is largely driven by the private sector, which makes up about 90.2 percent of total deposits.

In terms of assets, conventional banks recorded stronger and more consistent growth over the same period. Their assets rose from Tk 32.93 lakh crore in April 2025 to Tk 37.78 lakh crore in April 2026, a year-on-year increase of about 14.72 percent.

Islamic banks’ assets grew more slowly, increasing from Tk 9.14 lakh crore to Tk 9.56 lakh crore over the same period, reflecting a 4.58 percent rise.

The overall banking sector in Bangladesh saw strong investment growth between November 2023 and April 2026, with total investments increasing from Tk 18.99 lakh crore to Tk 24.45 lakh crore, a rise of 28.71 percent.

Within this, investments by conventional banks grew from Tk 16.73 lakh crore to Tk 18.53 lakh crore between April 2025 and April 2026, an increase of 10.71 percent.

Islamic banks’ investments rose from Tk 5.57 lakh crore to Tk 5.92 lakh crore over the same period, reflecting growth of about 6.26 percent.

“The year-on-year growth indicates gradual expansion, supported by rising demand for Islamic financing products, especially profit-and-loss sharing modes,” the report said.

From a sectoral perspective, the report added that Islamic banks’ investments were distributed across different areas of the economy, with the largest share going to industry and trade and commerce, highlighting their role in supporting productive and commercial activities.

Berger Paints Bangladesh Limited and its wholly-owned subsidiary, Jenson and Nicholson (Bangladesh) Limited, have decided to jointly invest Tk10 crore in a newly formed entity, Jenson and Nicholson Packaging Limited (JNPL).

According to a price-sensitive statement filed with the Dhaka Stock Exchange (DSE) recently, the country's leading multinational coatings manufacturer is expanding its footprint into the packaging sector to support its core operations and leverage emerging industrial opportunities.

The statement said Berger Paints will inject Tk5.10 crore in JNPL and the remaining Tk4.90 crore will be contributed by Jenson and Nicholson (Bangladesh) Limited.

Earlier, Berger Paints formed Jenson and Nicholson Packaging by acquiring a 51% stake through an investment of Tk5.10 crore, while Jenson and Nicholson (Bangladesh) invested Tk4.90 crore to acquire the remaining 49% stake in the packaging company.

JNPL is set to establish a manufacturing plant within the National Special Economic Zone to produce various plastic-based packaging products.

Berger officials noted that the company currently requires both metal and plastic containers for its paint products. While Jenson and Nicholson (Bangladesh) already manufactures metal containers for both internal use and commercial sale, the new venture will specifically address the growing demand for plastic-based packaging.

To facilitate the project, the Berger board has earlier approved an amendment to its land lease agreement with the Bangladesh Economic Zones Authority (Beza). Under the revised arrangement, 1.16 acres of land will be allocated to the new subsidiary, JNPL, while 38.25 acres will remain under the parent company out of the total 39.41 acres leased from Beza.

The company stated that setting up the plant within a special economic zone allows the venture to benefit from government-mandated tax holiday facilities. While the initial production is intended to meet Berger's internal requirements, the management envisions potential commercial expansion in the future.

The strategic move comes on the heels of a strong financial year for the paint giant. For the fiscal year ended 31 March 2026, Berger Paints Bangladesh reported a consolidated net profit of Tk372 crore, up 10% year-on-year. Buoyed by this robust performance, the company's board has recommended a 525% cash dividend – equivalent to Tk52.50 per share – for its shareholders.

The Bangladesh Bank has permitted authorised dealers (ADs) to facilitate outward remittances for lease rentals on ships and vessels operated by Bangladeshi-registered shipping companies, in a move aimed at boosting the country's maritime transport capacity.

In a circular issued today (18 June), the central bank said ADs will be able to process such payments in line with existing foreign exchange regulations applicable to aircraft leasing. The policy shift is intended to support the expansion of ocean-going vessels under local ownership.

Previously, the facility was restricted to aircraft leases. Under the revised guidelines, shipping companies will now be eligible for similar FX support, subject to compliance with specified conditions, the circular said.

The central bank directed that companies must obtain necessary approvals from the relevant authorities for operating leased vessels.

"It also required firms to remain compliant with regulatory obligations, including regular submission of returns to Bangladesh Bank and repatriation of surplus earnings," the circular added.

Industry stakeholders have welcomed the move, saying it will help expand Bangladesh-operated ocean-going fleets.

They expect the policy to strengthen the country's presence in global shipping, improve foreign currency earnings, and reduce reliance on foreign vessels, thereby easing pressure on foreign exchange reserves.

The initiative reflects Bangladesh Bank's broader effort to align foreign exchange regulations with sectoral development priorities and support sustainable growth in key industries.

The country's premier bourse maintained its robust upward trajectory last week, with the benchmark index hitting a nine-and-a-half-month high as investor confidence continued to strengthen under the influence of post-budget optimism and supportive regulatory interventions.

The benchmark DSEX index of the Dhaka Stock Exchange surged by 141 points or 2.5% to settle the week at 5,661, marking its fifth consecutive week of gains. The rally successfully pushed the index past the crucial 5,600-point threshold for the first time since late last year, reflecting a significant shift in market sentiment following repeated government commitments to capital market development.

The blue-chip segment also witnessed substantial growth, with the DS30 index gaining 70 points to close at 2,143.

This broad-based rally added approximately Tk3,400 crore to the total market capitalisation of the Dhaka bourse. While the daily average turnover saw a marginal dip to Tk1,283 crore, market participation remained resilient as investors actively accumulated attractively valued scrips across various sectors.

According to the weekly market review by EBL Securities, the week opened on a strong footing, bolstered by a buying spree in heavyweight stocks, particularly Islami Bank Bangladesh PLC. The bank's stock saw heightened interest following government-backed regulatory support aimed at alleviating its acute liquidity stress, which in turn restored confidence in the wider banking sector.

Beyond domestic cues, the easing of geopolitical tensions in the Middle East provided an additional boost to the overall risk appetite of market participants. Although intermittent profit-booking surfaced mid-week as some investors opted to lock in gains from the month-long rally, the downward pressure was quickly absorbed by bargain hunters who resumed their positions in fundamentally strong stocks, EBL Securities added.

The market was also supported by major index pullers such as Beximco Pharmaceuticals, Square Pharmaceuticals, Pubali Bank, and City Bank, which helped sustain the positive momentum despite selling pressure in other areas.

On the sectoral front, the textile sector dominated market activity, accounting for 12.8% of the total turnover, followed by general insurance at 12.1% and pharmaceuticals at 10.8%.

In terms of returns, the information technology sector emerged as the top gainer with a 4.9% increase, closely followed by financial institutions and mutual funds.

Conversely, the miscellaneous sector faced a staggering 15.4% decline, primarily dragged down by a sharp correction in Beximco Limited following its floor price withdrawal. The travel and jute sectors also ended the week in the red.

Individual stock performance was highlighted by Saif Powertech, which emerged as the top gainer of the week with a massive 39.7% price surge. Other notable gainers included National Feed Mill, SS Steel, and BD Thai Aluminium. On the losing side, Beximco Limited was the worst performer, shedding over 40% of its value, while Peoples Leasing and Regent Textile also recorded significant losses.

The Bangladesh Association of Publicly Listed Companies (BAPLC) has urged the securities regulator to simplify the listing process and remove existing barriers to encourage fundamentally strong companies to enter the capital market.

The association emphasised that resolving these procedural complexities is essential to ensuring long-term financing for the industrial sector through the country's bourses.

The call came during a courtesy meeting between a high-level BAPLC delegation and officials of the Bangladesh Securities and Exchange Commission (BSEC) at the regulator's headquarters in Agargaon, Dhaka, today (18 June).

The discussion focused primarily on market development, investor protection and the need to bring more reputable corporate houses into the trading fold.

During the meeting, BAPLC leaders informed the regulator that many high-potential companies have expressed a keen interest in going public but continue to face various procedural bottlenecks that discourage them from entering the market.

As the representative body of listed companies, the association said it is willing to play a facilitative role in bridging the gap between prospective issuers and the regulator to deepen the market's strength.

In response, the BSEC leadership assured the delegation that the commission remains dedicated to market reform and investor welfare.

The regulator pledged to provide maximum possible assistance to resolve the issues identified by the association, noting that the inclusion of good companies is vital for a vibrant and transparent capital market.

The two sides also discussed broader initiatives to modernise Bangladesh's financial ecosystem and make the capital market more attractive to both domestic and foreign investors.

The BSEC side was led by its Acting Chairman Tanwir Habib Rahman, accompanied by Commissioners Nahid Mahtab and Nafeez Al Tarik, along with senior executive directors.

The BAPLC delegation included its President Riad Mahmud, who is also the managing director of National Polymer Industries PLC. Vice-President Syed Ishtiaq Ahmed and Secretary General Amjad Hossain also attended the meeting.

Shipping traffic through the Strait of Hormuz rose to its busiest in two months after a deal to halt the US-Iran war, maritime trackers said on Friday.

A total of 25 commercial vessels crossed the newly reopened strait on Thursday, the highest number since mid-April, according to data from tracking firm AXSMarine -- more than three times the average of just over seven a day since early March.

In a sign of traffic picking up in the region, empty trucks queued for up to three kilometres (two miles) outside the UAE port of Korfakkan just south of the strait, as at least four container ships unloaded there, an eyewitness told AFP.

Other ships could be seen on the hazy horizon, apparently waiting their turn to dock and unload, the eyewitness said, requesting anonymity.

The spike came after Iran and the United States agreed this week to re-open the crucial route under an agreement to end the war, but before the postponement of talks between the sides in Switzerland that had been planned for Friday under that deal.

The number of crossings on Thursday may be higher, as some ships turned off or manipulated their AIS transponder signals to avoid detection, AXSMarine said in a news release.

Iranian forces effectively closed off the strait after US and Israeli strikes sparked the war on February 28. Maritime authorities reported dozens of attacks on ships in the area.

Global shipping groups warned this week that plans to resume traffic through the strait were still not clear and it was not thought safe to start exiting the Gulf.

The Pakistani navy published an alert Friday warning that a mine had been sighted in the strait off Oman. “All vessels transiting through the area are advised to navigate with extreme caution,” it said.

Iran’s Persian Gulf Strait Authority on Friday published new rules for transits during the 60-day period covered by the war agreement.

In a post on X it said all ships seeking to cross the Strait of Hormuz should submit a transit request “48 hours in advance”.

It said it would waive payments of “tariffs” and “Iranian insurances” for ships passing during the 60 days.

International Maritime Organization (IMO) chief Arsenio Dominguez said in April that the body was working on a plan to ensure safe transit for ships out of the Gulf. More than 500 commercial vessels and about 11,000 seafarers are still stuck in the Gulf, according to the IMO. It says 20,000 seafarers in the region have been affected by the war overall.

The agreement to stop the war this week was also meant to halt fighting in Lebanon but Israel’s military on Friday announced new strikes there.

A US official later said Israel and Iran-backed militia Hezbollah in Lebanon had agreed to a ceasefire.

The closure of the strait during the war drove up global oil prices and choked off shipments of energy and crucial commodities such as fertiliser.

Following the Iran-US agreement announced on June 14, “the first sign of relief came this week with fast falling prices”, said Ipek Ozkardeskaya, a senior analyst at banking group Swissquote.

“Energy and transport sectors will be the first to feel the relief, before it spills toward the rest of the economy,” she told AFP.

But given the risk of renewed fighting in Lebanon, she added, “questions remain regarding the US ability to end the war”.

China is stepping up scrutiny over exports of indium, leading some buyers to fear the niche metal, sought after for next-generation data centres, may be added to the export control regime that has become one of Beijing's most potent trade weapons.

China produces nearly 70% of the world's indium, a byproduct of zinc refining mostly used in displays and solder but also the raw material for making indium phosphide, used to make high-speed optical chips for AI data centres.

Beijing put indium phosphide on an export control list in February 2025 and the restrictions have become enough of a hurdle for next-generation data centres that the CEO of Nvidia-backed chipmaker Coherent travelled to Beijing with President Donald Trump in May to raise the issue.

While indium metal is not on the export control list, two buyers told Reuters about growing scrutiny over their purchases from Chinese customs. For the first time this year, a European buyer was asked to disclose information about end users, including where they were based.

A major buyer in North America said approvals had gone from same day to several days, which they attributed to more scrutiny of paperwork and described as "tense". This buyer had not been asked for extra information by customs.

China's Ministry of Commerce did not immediately respond to a request for comment on a public holiday.

All the buyers declined to be named owing to the sensitivity of the topic.

The extra due diligence is not uniform and two other buyers told Reuters they had heard of extra scrutiny but not faced it themselves. So far, Reuters has not identified any shipments that have been blocked.

Nonetheless there is some concern in the small industry that this is a prelude to tighter controls or the end-user disclosures which China, and other countries with export control regimes, use to chart global supply chains and chokepoints.

Indium has been identified as a potential vulnerability for the US, whose Defense Logistics Agency earlier this year released a request for proposals to stockpile up to 403 tonnes of the material over three years.

Another North American buyer said they suspected that the reporting requirements were "a precursor to restrictions or outright bans on exports."

Nine directors of Prime Bank PLC have announced plans to acquire shares worth about Tk31 crore from a sponsor, who intends to sell just over 1 crore shares through the block market.

According to a disclosure filed with the Dhaka Stock Exchange on 14 June, Mohammad Nader Khan plans to offload 1.01 crore shares from his holdings in the bank. At the current market price, the stake is valued at approximately Tk30.84 crore, and the transaction is scheduled to be completed through the block market within the next 30 working days.

Following the disclosure, the bank's nine directors announced on Wednesday (17 June) that they would acquire the shares being sold by Nader Khan.

Among the individual directors, Nafis Sikder will purchase the largest allocation of 12 lakh shares. Azam J Chowdhury will acquire 9.90 lakh shares, while Qazi Sirajul Islam, Md Shahadat Hossain, SM Tamzid and Tanvir A Chowdhury will each purchase around 9.7 lakh shares.

Among the corporate directors, MJL Bangladesh will acquire the largest portion with 19.46 lakh shares. EC Holdings will purchase 11.60 lakh shares, while Uniglory Cycle Industries will buy 9.78 lakh shares.

This reshuffle among the sponsors and directors comes at a time when the bank is enjoying a period of significant financial growth and stability.

Prime Bank recently reported a robust financial performance for the 2025 calendar year, posting a consolidated net profit of Tk910 crore. This represents a 24% increase from the Tk732 crore recorded in the previous year, reflecting the bank's improved operational efficiency and successful lending strategies. Consequently, the bank's earnings per share (EPS) rose to Tk7.84 in 2025 from Tk6.31 a year earlier.

The bank's balance sheet remains one of the strongest in the country's banking sector, with total assets reaching Tk64,890 crore as of December 2025. Its capital adequacy is also noteworthy, with a Capital to Risk-Weighted Assets Ratio (CRAR) of 18.07%, a figure that stands as one of the highest in Bangladesh.

Additionally, the bank reported a solid net asset value per share of Tk40 and a net operating cash flow per share of Tk58.07, indicating healthy liquidity.

To reward its investors for this record performance, the bank's board approved a 30% dividend for 2025 - comprising 25% cash and 5% stock - which was officially approved by shareholders at the Annual General Meeting held on 21 May.

Oil prices rose more than 1 percent Wednesday after US President Donald Trump threatened ‌to resume bombing Iran if it didn’t “behave”, but remained near three-month lows as the International Energy Agency warned of excess supply next year.

Brent crude futures were up 93 cents, or around 1.2 percent, to $79.89 a barrel at ​1308 GMT, and US West Texas Intermediate gained 79 cents, or 1 percent, to $76.84. Both ​contracts hit their lowest since early March earlier in the session.
Trump said on Wednesday that a memorandum of understanding with Iran was not final, and that he could ​resume a bombing campaign if he did not like it or if Iran didn’t “behave”.

“(There’s) still a ​bit of uncertainty in terms of the US situation ... so it ... makes sense for oil to bounce back from these levels after staging what has been quite a sharp decline in the last few days,” said Fawad ​Razaqzada, market analyst at City Index and FOREX.com.

IEA SAYS INVENTORIES TO BE RESTOCKED IN NEXT ​FEW MONTHS

In its first look at 2027, the IEA said the oil market will enter a significant supply overhang, ‌with global supply set to surge by 8 million barrels per day and demand rising by just 2 million bpd.

In the near term, the agency said the Iran-U.S. deal should provide an opportunity to replenish depleted inventories or build new strategic reserves.

“Markets may be underpricing the depth of ​the supply glut coming ​online,” said Crispus Nyaga, research analyst at Empire FX.

The MoU, not yet public, extends by another 60 days a tenuous ceasefire agreed in April, to allow room for talks ​between the US and Iran toward a permanent truce.

Still, industry officials ​say a full return to pre-war production and refining levels is likely to take weeks, months or even years.

US crude stocks fell 8.3 million barrels in the week ended June 12, market sources said, citing American Petroleum ⁠Institute data.

This ​exceeded expectations for a draw of 4.6 million barrels, ​with official numbers due from the Energy Information Administration at 10:30 a.m. ET (1430 GMT) on Wednesday.

Bangladesh Bank says nearly Tk 11 trillion in loans from the banking sector are at risk or face some form of difficulty.

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In its “Financial Stability Report 2025” report on loan data up to last December, the central bank says risky loans account for 59.73 percent of total loans disbursed.

The amount of non-performing loans has increased since last December, now amounting to Tk 5.88 trillion.

The amount of non-performing loans has gone up by Tk 314.87 billion in the span of three months, the report said, further increasing the amount of risky loans in the sector.

According to the report, by the end of 2025, risky loans in the banking sector had increased by Tk 3.31 trillion year-on-year. In 2024, the amount of risky loans had stood at approximately Tk 7.57 trillion, an increase of around Tk 2.6 trillion year-on-year.

Bangladesh Bank considers defaulted, written off, and rescheduled loans as risky.

The loan balance in the banking sector as of last December was around Tk 18.2 trillion. Of this, corporate loans accounted for 45.85 percent, the report said. Of total loans, 31.16 percent are large loans.

As a result of the increase in risky loans, the capital adequacy ratio and risky asset ratio have dropped year-on-year in December from 3 percent to 2.64 percent.

According to the 2025 estimate, the amount of risky loans in all scheduled banks in Bangladesh has increased by about 60 percent compared to the previous year to around Tk 10.88 trillion, higher than the proposed budget for the upcoming fiscal year.

Of this, the amount of defaulted loans is Tk 5.57 trillion, the amount of written-off loans is Tk 834.79 billion, and the amount of refinanced loans is Tk 4.47 trillion.

In 2025 alone, a record amount of loans – Tk 1.71 trillion – was refinanced. In the previous year, Tk 850 billion was refinanced.

Loans of Tk 1.82 trillion, which are under bans by the High Court, cannot be shown as non-performing.

During this period, the banking sector has been able to maintain only Tk 2.49 trillion of the required reserves for loan security, also known as loan provisioning, of Tk 4.41 trillion. This means the loan provisioning deficit is Tk 1.91 trillion.

The dollar rose to Tk123.10 today (17 June) as increased import payment demand and a decline in remittance-driven dollar supply put pressure on the foreign exchange market, according to senior officials at several commercial banks.

Bankers said several banks purchased dollars from remittance houses at rates ranging between Tk123 and Tk123.10 during the day. Similar rates were also observed in the interbank market.

A senior official of a private commercial bank told The Business Standard that the rise in the dollar rate was driven by two key factors.

"Payment pressure has increased, while dollar supply has fallen due to the unrest at Islami Bank," the official said.

According to bankers, Islami Bank Bangladesh is the country's largest remittance-collecting bank and typically supplies around 80% of its remittance dollars to the market. However, remittance inflows to the bank have declined somewhat since the beginning of the month amid ongoing unrest, reducing the overall supply of dollars in the market.

At the same time, banks are facing significant payment obligations for letters of credit (LCs) opened for various government imports, creating additional demand for foreign currency.

Despite the recent increase, senior banking officials expressed optimism that the dollar rate may ease in the coming days if supply conditions improve.

Meanwhile, Bangladesh Bank today verbally instructed banks not to purchase remittance dollars at rates exceeding Tk122.75, according to banking sector sources.

Economists, however, argue that the central bank should refrain from informal interventions aimed at influencing exchange rates and instead allow market forces to determine the value of the dollar.

Since July last year, Bangladesh Bank has been purchasing dollars from commercial banks as part of its foreign exchange management strategy, a practice that continues to date.