The US dollar traded around a 10-day low against other major currencies on Monday as a preliminary agreement to end the war between the US and Iran sent oil prices tumbling and boosted demand for riskier assets. US and Iranian officials said on Sunday they had agreed on a framework for a deal to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz.

The memorandum of understanding is scheduled to be officially signed on Friday in Switzerland, but caution still lingered as markets awaited more details and as the fate of Iran’s nuclear program was left for further negotiations.

Oil prices slumped, with Brent crude futures down around 5 percent to $82.9 a barrel. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was little changed at 99.52, hovering around its lowest since June 5.

Nick Rees, head of macro research at Monex Europe, said that despite the preliminary deal between the US and Iran, markets would likely be cautious about pricing in further optimism.

“There’s plenty of room to be disappointed here,” he said. “Crucially, we haven’t heard anything on the nuclear side. If that comes through over the next few days, then I think we can be a bit more constructive.”

“But without a nuclear agreement, I don’t think we can simply assume that any deal’s going to hold. So we are cautiously optimistic, but that warrants a relatively small FX reaction,” Rees said.

The euro was last 0.32 percent higher at $1.1605, and sterling rose 0.16 percent to $1.3428. Both were near the strongest level since June 5.

The Japanese yen was broadly steady at 160.10 per dollar, continuing to hover around the 160 level widely seen as a line in the sand for potential official intervention.

Islami Bank Bangladesh PLC shares rebounded significantly after Bangladesh Bank’s intervention restored investor confidence, triggering a price surge on the stock market. However, trading halted due to a shortage of sellers afterwards.

Shares of the bank have surged 32 percent over three consecutive trading sessions after Bangladesh Bank pledged full support to the lender and dissolved its entire board of directors, halting a crisis that had wiped nearly a fifth off the stock’s value in two days.

Yesterday, the stock hit the upper circuit limit of 10 percent and trading was halted due to a shortage of sellers following the government’s announcement of support for the bank, according to data from the Dhaka Stock Exchange (DSE).

The BB governor on June 12 pledged full support to the bank and has already extended Tk 2,500 crore in liquidity support.

Two days later, the central bank dissolved the bank’s entire board of directors, including its chairman, Md Khurshid Alam, whose appointment had triggered depositor protests that accelerated an earlier sell-off.

The rebound follows a steep decline. After the Bangladesh Securities and Exchange Commission removed the floor price on June 8, the stock shed around 19 percent in just two days through June 10, as depositor unrest and political controversy compounded market pressure.

Islami Bank carries the banking sector’s largest non-performing loan burden -- Tk 95,629 crore, equivalent to 50.88 percent of its total outstanding loans.The bank paid a 10 percent cash dividend in 2023 but skipped payouts in the two years since, a lapse that saw its stock downgraded to the Z category.

Parliament today (15 June) passed the supplementary budget of Tk56,117 crore for the fiscal year 2025-26.

Through this, parliament has approved additional expenditure by various ministries and divisions beyond the allocations in the main budget until 30 June.

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Finance Minister Amir Khosru Mahmud Chowdhury placed the Appropriation (Supplementary) Bill 2026 in Parliament, which was subsequently passed by voice vote.

The minister informed parliament that the net government expenditure in the main budget for the current 2025-26 fiscal year was set at Tk7.90 lakh crore.

However, due to a slowdown in government spending, particularly in the implementation of the Annual Development Programme (ADP) during the pre-election period, expenditure in the revised budget has been proposed to be reduced by Tk2,000 crore to Tk7.88 lakh crore.

He further said that the budget deficit in the revised budget has been proposed at Tk2 lakh crore, equivalent to 3.3% of gross domestic product (GDP).

The finance minister stated that allocations for 27 ministries, divisions and other institutions have been increased in the revised budget, amounting to Tk56,117 crore.

In contrast, allocations for 35 ministries and divisions have been reduced by Tk59,348 crore.

Through the speaker, the finance minister called on all members of parliament to approve the grants sought for expenditure other than charged expenditure mentioned in the supplementary financial statement.

He also sought approval for the increased allocation of Tk56,117 crore for the 27 ministries, divisions and other institutions.

In his concluding remarks on the supplementary budget, Khosru said that since assuming office, the government has been consistently taking effective measures aimed at improving people's living standards and revitalising the economy.

He added that amid global instability, internal economic weaknesses and pressure from high inflation, rebuilding the economy remains one of the government's key priorities.

The finance minister said efforts are ongoing to reduce wasteful public expenditure, cut non-priority spending and ensure austerity in administrative costs.

At the same time, the implementation of the government's election manifesto is also being advanced.

He further stated that although subsidies in the power and energy sector have had to be adjusted due to the global situation, the government has expanded social protection programmes.

Initiatives such as family cards, farmer cards and honorarium payments for imams, priests and muezzins have strengthened social safety net programmes, he said, adding that expenditure and deficit adjustments in the supplementary budget have been made to support the implementation of these activities.

Earlier, various ministries, divisions and institutions sought increased allocations under 25 demands for grants.

Among the allocations, the Finance Division received the highest amount at Tk28,655 crore, while the Textiles and Jute Ministry received the lowest at Tk0.45 crore.

Other major allocations included Tk16.59 crore for the Parliament Secretariat, Tk15.67 crore for the Cabinet Division, Tk19.77 crore for the Supreme Court, Tk1,389.65 crore for the Election Commission, Tk30.01 crore for the Public Service Commission,

Tk1,690.81 crore for the Financial Institutions Division, and Tk12,407.83 crore for the Planning Commission.

The Implementation Monitoring and Evaluation Division (IMED) received Tk21.97 crore, while the Commerce Ministry was allocated Tk301.93 crore. The Foreign Ministry received Tk59.97 crore, Law Ministry Tk84.74 crore, Public Security Division

Tk171.68 crore, and Legislative and Parliamentary Affairs Division Tk0.87 crore.

Other allocations included Tk4,923.48 crore for the Science and Technology Ministry, Tk722.46 crore for the ICT Division, Tk293.35 crore for the Women and Children Affairs Ministry, Tk112.58 crore for the Information and Broadcasting Ministry, Tk220.41 crore for the Religious Affairs Ministry, Tk1,809.56 crore for the Local Government Division, Tk75.61 crore for the Expatriates' Welfare and Overseas Employment Ministry, Tk97.71 crore for the Land Ministry, Tk2,177.04 crore for the Water Resources Ministry, Tk683.91 crore for the Food Ministry, Tk122.19 crore for the Liberation War Affairs Ministry, and Tk11.68 crore for the Anti-Corruption Commission.

Discussions were held on three cut motions relating to key ministries and divisions, including the Finance Division, Planning Division, Commerce Ministry, Science and Technology Ministry, Local Government Division, Water Resources Ministry, Food Ministry and the Anti-Corruption Commission.

A total of 304 cut motions were moved by 11 lawmakers during the session, but all were rejected by voice vote.

The motions were moved by lawmakers from Bangladesh Jamaat-e-Islami and independent members, including Shahjahan Chowdhury, Md Mujibur Rahman, GM Nazrul Islam, Md Abdul Gafur, Md Quamrul Hassan, Muhammad Nazibur Rahman, M Abdul Aleem, Al Faruq Abdul Latif, Md Ruhul Amin, Muhammad Ali Asgar, M Amir Hamza, Md Afjal Hossain, M Shafiqul Islam, Shaikh Monzurul Haque (Rahad), Md Masud Parves, Rumeen Farhana and Sk Mozibur Rahman Iqbal.

The parliament yesterday passed the supplementary expenditure plan of Tk 56,117 crore for fiscal year 2025-26 to meet increased expenditure under different ministries and divisions.

Among the ministries and divisions, the Finance Division received the highest allocation under the supplementary budget – an additional financial plan introduced by a government during a fiscal year to allocate extra funds for unforeseen expenses, cover revenue shortfalls, or adjust spending priorities.

Overall, the parliament approved allocations for 27 ministries and divisions under the supplementary budget, which Finance Minister Amir Khosru Mahmud Chowdhury placed before the House on June 11 along with the national budget.

The allocation for the Finance Division was Tk 28,655 crore, followed by Tk 12,407 crore for the Planning Commission and Tk 4,923 crore for the Ministry of Science and Technology.

The Ministry of Water Resources and the Local Government Division got Tk 2,177.04 crore and Tk 1,809.56 crore in additional allocations, respectively.

As per parliamentary rules, the government has to get approval from lawmakers if it needs to increase budgetary allocations for any ministry or division. The same process is not required for reduced allocations or expenditure.

During the outgoing FY26, the government has cut allocations to 35 ministries and divisions by Tk 59,348 crore. As such, the government’s revised expenditure plan has declined to Tk 788,000 crore for the current year from the initial plan of Tk 790,000 crore.

Addressing the parliament yesterday, Khosru said since assuming power, one of the government’s top priorities has been to restructure the economy by tackling global instability, internal structural weaknesses, and inflationary pressures.

“We are trying to reduce waste in every area of government expenditure, cut spending in non-priority sectors, and ensure frugality in administrative costs. At the same time, we are working to implement the government’s electoral manifesto.”

“However, due to global circumstances, we had to adjust subsidies for electricity and energy,” he added.

Opposition MPs raised concerns over weaknesses in the banking sector, rising default loans, shrinking private-sector credit flow, and the government’s capacity to finance the budget deficit.

They also questioned the government’s plan to borrow large sums from banks despite mounting default loans and liquidity crises, while simultaneously creating rescue funds for troubled banks.

They warned that this could further strain the financial sector.

Khosru, in response, said additional allocations were needed to finance priority programmes, including waiving principal and interest on agricultural loans of up to Tk 10,000 and funding two Annual Development Programme (ADP) and four non-ADP projects.

He stressed that the extra funds were not sought for the Finance Division’s own expenses and defended the proposal as justified, rejecting the cut motions.

Iran's foreign ministry spokesperson Esmaeil Baghaei has indicated that Iran and Oman may impose "fees" on ships passing through the Strait of Hormuz, reports Al Jazeera.

"The Strait of Hormuz is very important for us, and we have adopted certain procedures according to international law in order to protect Iran's national security and the Islamic Republic of Iran," Baghaei told a press conference.

"Our goal is to pave the way for a secure passage in this waterway. We need a certain period of time to discuss with the other sides this important matter," he said.

Baghaei said that "fees" would be charged for vessels using the strategic waterway.

"It's full services that will be offered in order to keep and maintain the environment," he said.

"So many other services will be offered by Iran and Oman, and this will cost money. Accordingly, the fees will be there, and this is clear," he added.

The government has formed a high-level committee to simplify and expedite the issuance of licences, permits and other regulatory approvals required to set up new industries and factories, as part of efforts to improve the ease of doing business and attract fresh investment.

The seven-member inter-ministerial committee will recommend measures to streamline approval procedures and remove regulatory bottlenecks that businesses have long identified as barriers to investment, according to a gazette notification issued by the Prime Minister’s Office on June 9.

The committee will be chaired by the minister overseeing the ministries of commerce, industries, and textiles and jute.

The members of the committee include the adviser to the ministries of finance and planning, the executive chairman of the Bangladesh Investment Development Authority (Bida), the cabinet secretary, the principal secretary to the prime minister, the finance secretary, and the secretary of the Ministry of Environment, Forest and Climate Change.

According to the notification, the committee will suggest ways to facilitate the issuance of licences, permits, no-objection certificates and other clearances required for establishing industrial units.

It will also propose a framework for granting provisional approvals at the initial stage of investment projects, allowing entrepreneurs to begin certain activities before obtaining all final clearances.

In addition, the committee has been tasked with reviewing existing approval requirements and recommending a classification system based on their significance, with a view to eliminating less critical permits and reducing compliance burdens.

The government may co-opt additional members, if necessary, while the Ministry of Textiles and Jute will provide secretarial support to the committee.

The order took immediate effect.

The government has also formed another high-level committee to facilitate bank financing for industries operating on state-owned mills, factories and government land, addressing a longstanding challenge faced by investors seeking credit.

The committee, constituted through a separate gazette notification issued by the Prime Minister’s Office on June 9, will recommend measures to help businesses secure loans against leasehold interests and other rights linked to government-owned properties.

Chaired by the minister overseeing the ministries of commerce, industries, and textiles and jute, the committee includes representatives from the Finance and Planning Ministry, Bangladesh Bank, the Finance Division and the Public-Private Partnership Authority.

It will also advise state-owned financial institutions, including Infrastructure Development Company Limited (IDCOL) and Bangladesh Infrastructure Finance Fund Limited (BIFFL), on financing projects established on government land.

The moves come amid growing calls from businesses to reduce procedural delays, improve regulatory efficiency and ease access to financing.

Entrepreneurs have long complained that obtaining approvals from multiple agencies increases both the time and cost of setting up businesses, while firms operating on government land often struggle to secure bank financing despite holding long-term leases.

The latest budget includes measures to improve the investment climate, including issuing business licences through a digital single-window platform within seven days, expanding digital tax and VAT services, and offering incentives for technology and environmentally friendly industries.

Business leaders welcomed the formation of the committees, saying faster approvals and improved access to financing could help strengthen the country’s competitiveness as an investment destination.

Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry, said the initiative reflects the government’s stated commitment to promoting a private sector-led economy.

“The proposal to issue licences and clearances within seven days could significantly improve the ease of doing business,” he said.

Ahmed said the government appeared to recognise the importance of investment promotion in accelerating economic growth. However, he noted that the success of the initiative would depend on effective implementation.

“It is now a matter of seeing how successfully these measures are carried out,” he said.

Kamran T Rahman, president of the Metropolitan Chamber of Commerce and Industry, also welcomed the move.

“We view such initiatives positively,” he said. “The government has announced a number of promising measures. If these are implemented effectively, they will certainly benefit businesses.”

Rahman said businesses have long faced a high cost of doing business, partly because securing permits and approvals often takes considerable time.

“If these processes are digitalised, approvals can be obtained much faster and businesses will begin to see the benefits sooner,” he said.

He added that online services would reduce the need for entrepreneurs to visit government offices repeatedly, saving both time and money.

Mohammed Amirul Haque, president of the Chittagong Chamber of Commerce and Industry, said both initiatives are encouraging for investment promotion.

“This type of cooperative mindset towards investors will have a positive impact on the economy,” he said.

However, he added that initiatives alone are not enough and that implementation will be the key factor in translating the government’s plans into reality.

The United States is set to release $12 billion in frozen Iranian assets before the commencement of negotiations with Tehran, Iran's Mehr news agency reported today (15 June), citing a 14-point memorandum of understanding between the two countries, reports AFP.

According to the document published by Mehr, a total of $24 billion in frozen Iranian assets would be released during a 60-day negotiation period following the conclusion of the memorandum.

The document states that "half of this amount must be made available to Iran before the start of the negotiations."

The memorandum cited by Mehr has not been officially confirmed by either Washington or Tehran.

US and Iranian officials said they had reached an agreement to end their war and reopen the Strait of Hormuz, a preliminary pact that sent oil prices lower but leaves the future of Tehran's nuclear programme subject to further negotiations.

Although still a framework agreement, the deal marks the most significant breakthrough yet in efforts to resolve a conflict that has killed thousands and disrupted global energy markets since it began with joint US-Israeli strikes on Iran in February.

"The Deal with the Islamic Republic of Iran is now complete," US President Donald Trump wrote on his Truth Social platform at around 5:30pm in Washington (2130 GMT) on Sunday.

Trump's announcement came shortly after Pakistani Prime Minister Shehbaz Sharif, whose country has acted as a mediator between the two sides, said a deal had been reached early Monday local time.

The memorandum of understanding underpinning the agreement is scheduled to be formally signed in Switzerland on Friday.

Gold rose more than 2% on Monday after US and Iran officials said they had reached an initial agreement to end their war, pushing oil prices lower and easing concerns about inflation and higher interest rates.

Spot gold climbed 2.3% to $4,316.03 per ounce by 0730 GMT, hitting its highest level since 9 June and extending gains for a third straight session. US gold futures for August delivery rose 2.3% to $4,337.20.

US and Iranian officials said on Sunday they had agreed on a framework to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz.

The pact will be officially signed on Friday in Switzerland, Pakistani Prime Minister Shehbaz Sharif said in a post on X.

The US dollar fell to a 10-day low, making greenback-priced bullion cheaper for other currency holders, while oil prices slipped more than 4%.

"Lower oil prices and a softer dollar, stemming from reduced geopolitical risk and the anticipated reopening of the Strait of Hormuz, are helping to calm inflation expectations," said Tim Waterer, chief market analyst at KCM Trade.

"This combination is providing the precious metal with its best tailwind in recent weeks, though sustainability will depend on how durable the peace agreement proves to be."

Gold prices have fallen about 20% since the start of the US-Israeli war against Iran in late February. The effective closure of the Strait of Hormuz has led to a sharp increase in global oil prices, stoking inflation concerns and raising expectations of interest rates staying higher for longer.

Bullion loses appeal in a high-interest-rate environment as it is a non-yielding asset.

Markets have scaled back expectations for a US rate hike in December to 51% after the peace deal, down from 69% last week, according to the CME FedWatch tool.

Investors now await the Federal Reserve policy decision and remarks, the first under Chair Kevin Warsh, on Wednesday, with rates widely expected to remain unchanged.

"Currency debasement concerns, fiscal risks and ongoing geopolitical fragmentation continue to underpin long-term demand (for gold). A moderation in energy-led inflation could help these themes regain traction," OCBC said in a note.

Spot silver rose 3.3% to $70.22 per ounce, platinum gained 2.7% to $1,763.38 and palladium climbed 2.7% to $1,317.22.

Bangladeshi exporters will now be able to showcase their products on globally recognised online marketplaces such as Alibaba and Amazon after Bangladesh Bank eased foreign exchange regulations to facilitate business-to-consumer (B2C) exports.

The central bank issued a circular today (15 June) allowing exporters to list and display goods on international e-commerce platforms accessible to foreign buyers, aiming to expand digital export opportunities and simplify cross-border trade.

Under the new guidelines, exporters can use platforms including Alibaba, AliExpress and Amazon to reach global customers, subject to compliance with payment and regulatory requirements.

According to the circular, authorised dealer (AD) banks must verify that exporters have valid merchant or participation agreements with recognised online marketplaces, including arrangements for payment settlement and dispute resolution.

The facility will apply only to small-value exports on Cost and Freight (CFR) terms, with each transaction capped at $5,000 or its equivalent.

For documentation, transport, or shipping papers may be issued in the name of foreign buyers. The EXP form requirement will be waived for shipments up to $1,000 per consignment, provided export proceeds are received in advance through banking channels or legitimate digital payment systems. For all other shipments, existing EXP form procedures will apply.

Bangladesh Bank said export proceeds must be repatriated by online marketplaces, platforms or overseas buyers through formal banking channels or approved digital payment systems within the prescribed timeframe from the date of shipment.

The circular also stated that fees, commissions and other charges payable to online marketplaces must remain within the limits set by the regulations. Officials said the move is intended to support small exporters and integrate Bangladesh more closely into global digital trade networks.

Oil prices slipped to a three-month low on Monday after US President Donald Trump and Iran’s deputy foreign minister said they had reached an initial deal to end the war and to resume traffic through the Strait of Hormuz.

Brent crude futures fell $3.65, or 4.2 percent, to $83.68 a barrel by 0630 GMT and US West Texas Intermediate was at $80.75, down $4.13, or 4.9 percent. Both contracts fell to their lowest levels since March 10 on Monday after tumbling more than 3 percent on Friday.

The US and Iran will sign a memorandum of understanding in Switzerland on Friday, said the prime minister of Pakistan, whose country has served as a mediator.

Trump said on Sunday that the Strait of Hormuz would be open “toll free” and that a US naval blockade of Iranian ports would also end. Iran’s semi-official Mehr news agency said the draft deal called for reopening the Strait of Hormuz within 30 days under Iranian arrangements.

“The geopolitical risk premium that had been built into crude is now being unwound quite aggressively as traders price in the prospect of restored oil flows,” said Tim Waterer, chief market analyst at KCM Trade.

The world has lost millions of barrels of oil and gas supply since the war closed the Strait of Hormuz, a chokepoint for a fifth of the world’s oil and liquefied natural gas supplies, for more than three months. Investors are also watching cautiously how quickly Middle Eastern producers can resume oil production and exports following damage from the war and whether more ships will enter the region.

“While these uncertainties suggest upside risks to our forecast for Brent oil futures to reach $80/bbl by the end of the year, it’s worth noting that oil flows through the Strait of Hormuz just needs to reach 60-70 percent of pre-war levels to return oil markets to pre-war oversupply expectations,” Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia, said in a note.

Iran’s deputy foreign minister, Kazem Gharibabadi, said a more expansive agreement would be negotiated during a 60-day ceasefire period.

E4 nations, which include the UK, France, Germany and Italy, said on Sunday the countries were prepared to lift sanctions on Iran in response to steps on its nuclear programme.

“Beyond the immediate price reaction, attention will now shift toward the pace of actual supply normalization and compliance with the agreement,” said Priyanka Sachdeva, senior market analyst at Phillip Nova. “While the conflict may have come to an end and oil flows through the Strait of Hormuz may gradually return to normal, the damage already done cannot be reversed overnight. This includes not only any physical damage to oil infrastructure but also the economic strain endured by oil importing economies that have faced elevated energy costs for months.”

Acting managing director of Islami Bank Md Altaf Hossain has said the bank received another Tk2,500 crore in liquidity support from the central bank today (15 June).

"We also received Tk2,500 crore in liquidity support from Bangladesh Bank yesterday. We have not yet had to use the funds received yesterday," he told reporters.

Altaf said he hopes that customers who have withdrawn their deposits will regain confidence in the bank and return.

The acting chief said the bank is already seeing signs of improving customer confidence.

"We have just received information from one of the bank's major branches showing that the number of account closures has fallen by 75% compared to previous levels," he said.

Bangladesh Bank yesterday dissolved the board of Islami Bank Bangladesh, including Chairman Md Khurshid Alam, as the bank grappled with an acute liquidity crisis fuelled by deposit flight and growing uncertainty among customers.

To stabilise the situation, the regulator appointed its executive director, Mohammad Zahir Hussain, as administrator of the country's largest shariah-based bank.

A group of Islami Bank customers today welcomed the decision to dissolve the bank's board of directors, urging the central bank to swiftly appoint a new board comprising competent, credible and politically neutral individuals.

Under the banner of the "Islami Bank Sachetan Grahok Forum," they congratulated Bangladesh Bank on the move and called for the restoration of sound governance at the bank.

They also urged the regulator to reconstitute the board with experienced individuals who were involved in the bank's management before its takeover by the S Alam Group, saying that such a move will help rebuild depositor confidence and strengthen the institution's governance framework.

Newly appointed Islami Bank administrator Zahir said today that efforts are underway to form a "completely neutral" board to strengthen governance and restore depositor confidence.

Speaking after assuming charge, he said his appointment is for a limited period and assured customers that banking operations and transactions will continue uninterrupted, urging them to carry on their banking activities without concern.

The crisis emerged quickly after Bangladesh Bank appointed former deputy governor Khurshid Alam as chairman of Islami Bank on 24 May, just hours after the previous chairman stepped down and immediately before the start of a week-long Eid-ul-Adha holiday.

The move raised swift concerns among stakeholders.

Following the holidays, protests broke out on 1 June outside the bank's Motijheel head office in Dhaka, where demonstrators under the banner of the Islami Bank Sachetan Grahok Forum demanded cancellation of Khurshid's appointment.

Bangladesh Bank has removed Islami Bank's entire board of directors, including the chairman.

Mohammad Shahriar Siddiqui, assistant spokesperson and director of the central bank, confirmed the development.

He said the decision was taken today (14 June) under the Bank Company Act, 1991.

In a statement, the central bank said the board, including the chairman, was dissolved in the interest of depositors and the public.

It also added that, under Section 47(3) of the Bank Company Act, 1991, Bangladesh Bank Executive Director Mohammad Zahir Hussain has been assigned to exercise all powers and perform the responsibilities of the board.

Despite pledging to strengthen the bond market and expand alternative sources of financing beyond the banking sector, the BNP government has proposed imposing tax on income earned from zero-coupon bonds in the budget for the 2026-27 fiscal year.Market trend analysis

Since taking charge of the finance and planning ministries for the first time under the BNP government, Amir Khosru Mahmud Chowdhury has repeatedly stressed the need to revitalise the capital market and deepen the bond market.

In his budget speech on Thursday, he also announced plans to introduce new bond instruments.

However, the Finance Bill for the next fiscal year proposes withdrawing a tax exemption that individual taxpayers have enjoyed on income from zero-coupon bonds for nearly two decades.

To facilitate the change, the government has proposed amending the 6th Schedule of the Income Tax Act 2023.

Investors do not pay any tax on income generated from zero-coupon bonds at the moment.

According to the schedule, any income earned from zero-coupon bonds by individuals—excluding banks, insurers and other financial institutions—is deducted from total taxable income and therefore remains tax-free.

The exemption applies to bonds issued through a bank, insurance company or financial institution with prior approval from Bangladesh Bank or the Bangladesh Securities and Exchange Commission (BSEC).Personal finance e-book

Individual taxpayers also receive the same benefit when such bonds are issued by non-financial institutions, provided they have obtained prior approval from Bangladesh Bank or the BSEC.

The Finance Bill 2026 proposes abolishing this provision.

A zero-coupon bond is a debt instrument that does not pay periodic interest.

Instead, it is sold at a discount to its face value and redeemed at full value upon maturity.

The difference between the purchase price and the redemption value constitutes the investor’s profit.

The tax exemption was introduced in the Finance Act for FY2007-08 and took effect on Jul 1, 2007.

According to BSEC’s annual report, 11 companies raised Tk 66.75 billion through zero-coupon bond issuances in FY2023-24. In FY2024-25, one company raised Tk 1.71 billion through such bonds.

In March, City Sugar Industries, part of leading conglomerate City Group, received approval to raise Tk 13 billion through a bond issue to repay liabilities and invest in the sugar sector.

Akij Food and Beverage was also cleared to raise Tk 5 billion through zero-coupon bonds.

Economists and business leaders have said the proposed budget, while compassionate and business-friendly, faces implementation risks due to ambitious macroeconomic targets, policy uncertainty and limited execution capacity.Entrepreneurship resources

The observations were made at a discussion titled “The Finance Bill 2026 Unveiled” organised by SMAC Advisory Services Ltd at Gulshan Club in Dhaka on Sunday evening.

Policy Exchange Bangladesh founder and CEO Dr. Masrur Reaz said the budget reflects a “green signal” in the current economic context, indicating a broadly supportive and accommodative stance.

“This is a compassionate budget. It has tried to support people and businesses. No major new burdens have been imposed,” he said.

He noted that the budget has attempted to ease pressure on households and businesses through tax measures and policy adjustments, offering some relief amid prolonged economic stress.

Dr. Reaz also described the budget’s policy direction as a “yellow signal,” saying it sends positive messages to investors, although concerns remain over execution and realism of targets.

He said a budget typically performs three key functions—tax and rate adjustments, allocation of public expenditure, and policy signalling.

“We usually expect the budget to solve everything, but in reality, it can only perform these three roles,” he added.Personal finance e-book

Meanwhile, Foreign Investors' Chamber Of Commerce & Industry (FICCI) President Rupali Chowdhury said listed companies and most industries are already paying multiple layers of taxes and duties depending on their business structure.

She said, “If both revenue and expenditure keep rising, the budget ultimately becomes expenditure-driven.”

She stressed that policy consistency and predictability are essential for business confidence, warning that frequent changes in corporate taxation create uncertainty.

Highlighting investment challenges, she said Bangladesh is competing with countries such as Vietnam, Indonesia and Malaysia for foreign direct investment, making policy efficiency and implementation capacity critical.

She also pointed to long-standing structural bottlenecks, including the lack of an effective one-stop service for investors, bureaucratic procedures across ministries, and infrastructure constraints.

“Our goal should be higher FDI, more employment, and ultimately higher tax revenue. But that requires transparency, accountability and a level playing field,” she said.Bangladesh economic report

She warned that unless structural weaknesses are addressed, economic pressures could intensify, with the tax burden increasingly shifting to compliant taxpayers.

The event was moderated by SMAC Advisory Services Ltd partner Snehasish Barua.

Among others, NBR First Secretary (Customs Policy Wing) Md. Tarique Hassan, Second Secretary (VAT Policy) Bodruzzaman Munshi, and Joint Commissioner of Taxes Bapon Chandra Das also attended the discussion.

Bangladesh's gross foreign exchange (forex) reserves climbed to US$35.63 billion on Sunday after the country received more than $1.0 billion in budget support from the Asian Development Bank (ADB).Regional business directory

The country's gross foreign exchange reserves rose to $35.63 billion on Sunday from $34.73 billion on June 10 following the disbursement of ADB budget support funds, officials said.

According to the latest data from the Bangladesh Bank (BB), reserves measured under the International Monetary Fund's (IMF) Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6), increased to $31.07 billion from $30.08 billion during the same period.

"We are now capable of meeting around six months' worth of import payment obligations with the existing reserves," a senior Bangladesh Bank official told The Financial Express (FE).

Bangladesh's actual imports, measured by the settlement of letters of credit (LCs), declined by 4.14 per cent to $50.43 billion during the July-March period of fiscal year (FY) 2025-26, compared with $52.61 billion in the corresponding period of the previous fiscal year.

Meanwhile, the opening of fresh LCs, commonly known as import orders, rose marginally by 0.35 per cent to $53.94 billion during the period under review, up from $53.75 billion a year earlier.

The central bank official said the country's gross forex reserves could exceed $36 billion by the end of June if the government receives additional external financing.

Earlier, on May 10, the gross forex reserves fell to $34.14 billion after Bangladesh settled $1.51 billion in import payment liabilities to member countries of the Asian Clearing Union (ACU).Personal finance e-book

Bangladesh Bank officials said stronger remittance inflows and lower import payment obligations have also helped improve the country's reserve position in recent months.

The central bank's purchase of US dollars from commercial banks has further supported reserve growth, according to officials.

Bangladesh Bank has bought a total of $6.42 billion from commercial banks since July 13 last year under the prevailing market-based, free-floating exchange rate regime, BB data showed.

High oil and gasoline prices and energy supply problems will not be solved overnight, despite an agreement to end the Iran war and open the Strait of Hormuz announced Sunday (14 June).

It will likely take months before energy companies can resume operations to the point of meeting the world's demand, according to energy experts.

The slow pace of the process of shipping and refining crude oil and doubts about the security of travelling through the strait mean the effect will not be seen immediately, they said.

Ships loaded with crude oil have been stranded in the Persian Gulf for more than three months, unable to safely travel through the waterway, through which about a fifth of the world's oil and gasoline supplies typically travelled before the war began.

"It's going to take time for people to feel comfortable and for insurance to be in place... particularly to get people on the ground to restart some of these assets," said Daniel Evans, global head of fuels and refining research at S&P Global Energy.

First, ships that have been stranded will have to exit the strait and then new tankers will have to come in to be loaded, Evans said.

"To bring a ship in, you need to be confident that you've got a big enough window of safety to bring it in, load it and move it out," he added.

Oil tankers also move slowly, he explained. It takes months to travel from the strait to distant countries, deliver the crude oil to a refinery for processing and then arrive at its final destination.

Bangladesh is set to receive 40 megawatts of electricity from Nepal via India for five months, starting from 15 June to November, under a tripartite agreement signed between Bangladesh, Nepal and India on 3 October, 2024.

Though it is symbolic given the demands that Bangladesh has now, both sides see potential to increase in the future, officials told UNB.

Nepal's hydropower potential and the increasing energy needs of Bangladesh provide ample opportunities to enhance energy cooperation between the countries.In the first ten months of the current fiscal, Nepal exported electricity worth almost Rs21 billion (about Tk25.6 billion) to India and Bangladesh. Last year, the number stood at above Rs13 billion.

Bangladesh and Nepal signed a Memorandum of Understanding (MoU) on Cooperation in the Field of Power Sector on 10 August 2018.

Under this MoU, a Joint Steering Committee (JSC) at the energy/power secretary level and a Joint Working Group (JWG) at the joint secretary level were established to facilitate collaboration and advance initiatives in the power sector.

The 7th meetings of JSC and JWG on Nepal-Bangladesh Cooperation in Power Sector were held in Dhaka on 26-27 November 2025.A tripartite Power Sales Agreement (PSA) to export 40 MW of electricity from Nepal to Bangladesh was signed on 3 October 2024 between the Nepal Electricity Authority (NEA), the Bangladesh Power Development Board (BPDB), and NTPC Vidyut Vyapar Nigam Ltd. (NVVN) of India.

The agreement came into fruition with the commencement of the export of 40 MW of electricity from Nepal to Bangladesh on 15 November 2024.As per the Agreement, Nepal has been exporting 40 MW of electricity to Bangladesh each year from 15 June to 15 November.

Negotiations are also underway regarding the 683 MW Sunkoshi III hydropower project on a joint venture basis.Bangladesh highlighted its commitment to working on long-term plans to ensure strategic partnerships and said that increasing trade volume between the two countries would be mutually beneficial.

Trading in Shyampur Sugar Mills resumed on the Dhaka Stock Exchange today (14 June) after a one-day suspension imposed over an unusual surge in the company's share price, with the stock falling 8.75% to Tk218 following the reopening.

The DSE had suspended trading in the company's shares on Thursday, citing its regulatory authority to intervene in cases of abnormal price movements or suspicious trading activity in order to protect investors and ensure fair price discovery.

The exchange said the suspension was necessary because the recent rally in Shyampur Sugar's share price was not aligned with the company's financial and operational condition and warranted further examination for possible market manipulation or undisclosed price-sensitive information.

Market participants also noted that the sharp increase in the share price was inconsistent with the company's underlying fundamentals. According to market data, Shyampur Sugar Mills has remained completely inactive in sugar production since fiscal 2020-21 because of prolonged losses and outdated machinery.

The DSE said its principal objective was to ensure equal access to information for all investors and maintain orderly market conditions.

Under stock exchange regulations, trading can be suspended if listed companies fail to comply with reporting requirements, violate corporate governance rules, or fail to disclose material information, including operational shutdowns, loan defaults, or significant legal issues.

Brokerage firms, however, argue that while monitoring unusual price movements is necessary, suspending an entire stock may not always be the most effective approach. They suggest that regulators should instead focus on identifying suspicious Beneficial Owner (BO) accounts involved in potential manipulation.

The DSE said the company has been asked to provide explanations and supporting documents for the unusual price movement. A final decision on future trading will be made based on the company's response and the outcome of the investigation.

Overall, the case highlights the regulator's efforts to maintain market transparency and protect investors, even as such actions temporarily affect trading sentiment.

Mohammed Nader Khan, a sponsor and former chairman of Prime Bank PLC, has announced plans to sell 1.02 crore shares of the bank through the block market, according to a disclosure published on the stock exchanges today (14 June).

The shares are valued at approximately Tk30.54 crore based on today's closing price of Tk30 per share.

Nader Khan currently holds 4.40 crore shares, representing a 3.61% stake in the bank.

The proposed sale accounts for around 23% of his existing holdings.

According to the disclosure, the shares will be sold through the block market of the Dhaka Stock Exchange within the next 30 working days.

A block trade refers to a large, privately negotiated transaction of securities.

Following the sale, he will retain 3.38 crore shares in the bank, maintaining a significant ownership position.

Meanwhile, Prime Bank reported strong financial results for 2025, posting a consolidated net profit of Tk910 crore, up 24% from Tk732 crore in the previous year.

The bank's earnings per share rose to Tk7.84 in 2025 from Tk6.31 a year earlier, reflecting improved profitability.

The bank also maintained a solid financial position during the year.

Its net asset value per share stood at Tk40, while net operating cash flow per share reached Tk58.07, indicating strong liquidity and operational performance.

Total assets increased to Tk64,890 crore as of December 2025, underscoring continued business expansion.

The bank's Capital to Risk Weighted Assets Ratio stood at 18.07%, among the highest in Bangladesh's banking sector.

The bank's board approved a 30% dividend for 2025, comprising 25% cash and 5% stock dividends.

Shareholders approved the payout at the annual general meeting held on 21 May.

Business leaders have welcomed the proposed national budget for FY2026-27, describing it as a positive step for the private sector and evidence of a shift in the government's approach toward businesses and investors.

The observations were made at a seminar titled "The Finance Bill 2026 Unveiled", organised by SMAC Advisory Services Limited at Gulshan Club in Dhaka on Sunday (14 June).

Speaking at the event, Foreign Investors' Chamber of Commerce and Industry (FICCI) President Rupali Chowdhury said the budget had been well received by investors.

"The budget is really welcome. We have seen a change in the government's mindset," she said.

However, she noted that several longstanding issues affecting businesses and investors remain unresolved and require immediate attention.

"Time is running out. The issues that still exist need to be resolved quickly," she said.

Referring to the imposition of supplementary duties and other tax measures, she said certain sectors, including the beverage industry, continue to face a growing tax burden.

She also stressed that attracting foreign direct investment (FDI) would require more than competitive labour costs.

"The ground reality for companies is still challenging. FDI will not come simply because of cheap labour," she said.

Dr M Masrur Reaz, chairman of Policy Exchange Bangladesh, said, "The biggest positive aspect of the budget is that it sends a good signal to businesses and taxpayers."

He warned that containing inflation would remain one of the government's most pressing challenges.

During the seminar, Snehasish Barua, director of SMAC Advisory Services Limited, outlined key changes proposed in the Finance Bill relating to income tax, value-added tax (VAT) and customs duties.

Zareen Mahmud Hosein, Sukanta Bhattacharjee, director of SMAC Advisory Services Limited, and senior officials of the National Board of Revenue (NBR) also spoke at the event.