The National Board of Revenue (NBR) has intensified nationwide monitoring and verification of withholding tax compliance through special teams of its tax zones.

In a press release issued today (19 July), the NBR urged all concerned to remain aware of the powers vested in tax officials under Section 147 of the Income Tax Act, 2023.

According to the release, Section 147 authorises tax officials to enter and inspect, without obstruction, the premises, business centers, or offices of any commercial or economic establishment.

The officials are also empowered to examine and requisition books of account, vouchers, bank statements, receipts, and any documents related to economic activities.

The law further authorises tax officials to inspect information stored in computer systems, cloud servers, digital records, or electronic devices and, where necessary, gain access by bypassing passwords or encryption.

To verify the accuracy of taxes deducted at source, officials may temporarily seize and retain account books, documents, electronic records, or devices in their custody.

They are also authorised to collect copies of documents, images, or account records and affix identification marks or official seals where necessary.

The NBR said Section 147(2) of the Income Tax Act provides for penalties against any person who creates obstacles or refuses to cooperate with tax officials in carrying out these revenue collection activities.

The revenue board requested taxpayers deposit taxes deducted at source into the government treasury through the e-Challan system by correctly mentioning the relevant legal provision and the appropriate economic code.

The NBR also advised taxpayers facing any ambiguity, complexity, alleged harassment, or grievance regarding the implementation of Section 147 to contact the member secretary of the NBR Committee on Section 147.

The World Cup left stadiums packed and millions of fans euphoric in Mexico, but failed to lift a sluggish economy weighed down by weak investment.

Uncertainty also looms over the upcoming review of the North American trade agreement (USMCA). The tournament ends Sunday after more than a month of matches across Canada, the United States, and Mexico.

Mexico hosted 13 of 104 games. However, it fell short of ambitious official tourism targets aimed at boosting gross domestic product (GDP), which contracted in the first quarter.

Humberto Calzada, chief economist at Rankia, commented on the situation. He said the World Cup will not structurally change the trajectory of the Mexican economy.

Calzada noted the tournament offers only a short-term stimulus for an economy the government expects to grow between 1.8 percent and 2.8 percent this year, compared to analysts’ forecasts of 1.1 percent.

The economic impact was highly localised. Banorte lowered its estimate of the World Cup’s GDP contribution to 0.4 percent-0.5 percent, down from a previous forecast of up to 0.62 percent.

Banamex calculated the total economic impact at 2 billion dollars. This represents about 0.1 percent of GDP and less than half of the 5.6 billion dollars Mexico received in remittances in May alone.

Deloitte projected the competition created 100,000 temporary jobs, 10 percent fewer than its previous estimate.

Meanwhile, BBVA reported its household consumption indicator fell 0.2 percent month-on-month in June. Spending on hotels was down 10.5 percent and restaurants down 4.9 percent, despite a 16.5 percent spike in entertainment.

The benefits were uneven across the host cities of Mexico City, Guadalajara, and Monterrey. The Mexican Restaurant Association reported that half of its establishments performed worse than in a typical week.

This was due to low hotel occupancy and local protests in the capital. Air travel data was also mixed.

Passenger traffic rose slightly in June in Guadalajara and Monterrey but fell at Mexico City’s main airport.

Analysts say the main driver of the Mexican economy remains outside the stadiums: trade certainty under the USMCA.

With companies holding back investment ahead of the trade pact’s review, and the economy contracting 0.6 percent in the first quarter, the IMF recently trimmed Mexico’s growth forecast to 1.2 percent from 1.6 percent.

US import prices unexpectedly rose in June as declines in the costs of food and energy products were more than offset by higher prices for capital and consumer goods.

This led to the largest annual increase in imported inflation in nearly four years. Import prices increased 0.3 percent last month after a downwardly revised 1.7 percent advance in May, according to the Labor Department.
Economists polled by Reuters had forecast import prices, which exclude tariffs, decreasing 0.7 percent after a previously reported 1.9 percent rise in May.

In the 12 months through June, import prices surged 7.1 percent. That was the biggest advance since August 2022 and followed a 6.6 percent increase in May.

The monthly increase in import prices bucked declines in producer and consumer prices in June, which were attributed to the retreat in oil prices as a fragile ceasefire between the US and Iran took hold.

That truce collapsed last week, pushing oil prices to a one-month high. Prices of imported fuel fell 0.4 percent last month after rising 12.6 percent in May. They jumped 44.1 percent year-on-year in June.

Imported food prices eased 0.2 percent. Excluding food and fuels, import prices increased 0.4 percent after advancing 0.8 percent. The so-called core imported inflation increased 4.6 percent in the 12 months through June.

Core imported inflation was boosted by a 0.4 percent increase in imported capital goods prices, reflecting strong demand for technology products as businesses ramp up investment in artificial intelligence.

Prices for imported consumer goods, excluding automotives, rose 0.3 percent. The cost of imported automotive vehicles, parts and engines eased 0.1 percent.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan has said the country must first develop a functional conventional bond market before promoting sustainable bonds, as issuing bonds remains more expensive and time-consuming than obtaining bank loans.

Speaking as the chief guest at the Sustainability Summit 2026 in Dhaka on Saturday, Khan said the absence of an effective bond market has remained one of the country's longstanding weaknesses in capital market development.

"Bangladesh does not yet have a functioning bond market," he said. "Apart from government securities (G-Secs), no other bonds are traded on the main board of the Dhaka Stock Exchange. That is the current reality."

The day-long summit was organised by Bangladesh Brand Forum and Sustainable Brand Initiative under the Bangladesh Innovation Conclave at the Radisson Blu Water Garden Hotel.

Khan said sustainable bonds would be essential for financing future development, but Bangladesh was not yet ready because the conventional bond market itself had yet to become effective.

"We must move towards sustainable bonds eventually. However, before that, we need to strengthen the foundation of the traditional bond market," he said.

The BSEC chairman said he had identified the key obstacle shortly after assuming office.

"If I want to borrow from a bank, I can obtain financing within three months at a fixed cost. But raising funds through bonds takes about a year and costs more. Naturally, businesses will choose bank loans," he said.

He said the commission would work to reduce the time required for bond issuance and lower the cost of raising funds through bonds so that it becomes cheaper than bank borrowing.

"We will implement reforms to shorten the bond issuance process and make bond financing more cost-effective," he added.

Turning to the stock market, Khan expressed concern over the dominance of retail investors, saying many invest without sufficient knowledge of the market.

"Unfortunately, most investors in our stock market are retail investors. Many do not have a proper understanding of shares and invest simply because someone tells them prices will rise," he said.

On corporate governance, Khan stressed that companies with sound governance practices enjoy greater public confidence.

He said independent directors in Bangladesh often fulfil only a legal requirement rather than making meaningful contributions to corporate oversight.

"Many independent directors still do not know how to contribute effectively in board meetings. They need more training and greater awareness," he said, drawing on his experience of serving on the boards of multinational companies operating in Bangladesh.

In his opening remarks, Bangladesh Brand Forum Founder and Managing Director Shariful Islam said sustainability should no longer be treated as an annual discussion but embedded into the core of every business.

"As Bangladesh moves towards achieving the Sustainable Development Goals by 2030 and prepares for graduation from the least developed country category, responsible business is no longer optional. It is the foundation of our competitiveness," he said.

The summit brought together leading business executives, policymakers, industry experts, academics and social entrepreneurs to discuss sustainability, responsible business practices and corporate governance.

Commercial banks have proposed introducing extra and some new charges for 14 services, including fees on frequent cash withdrawals, reactivating dormant accounts and higher account maintenance charges.

The Association of Bankers, Bangladesh (ABB) has submitted the proposal to the Bangladesh Bank (BB) recently.

Some services that are currently free, such as unlimited cash withdrawals in a month, would become chargeable under the proposal. ABB says the changes are needed to offset rising operating costs driven by inflation.

However, the proposal has sparked criticism among ordinary customers, business chambers and trade leaders, who say that it would increase banking costs for all -- small depositors, borrowers, businesses, importers and exporters.

Some have questioned the timing of the proposal, with the banking sector grappling with a confidence crisis and a mounting stock of non-performing loans.

Businesses are also struggling with high borrowing costs as tighter monetary policy keeps lending rates elevated in an effort to rein in inflation. Private sector credit growth has fallen to a historic low, while many banks continue to face allegations of poor customer service.

According to the proposal, banks would charge customers between Tk 100 and Tk 300 for cash withdrawals beyond a specified monthly limit.

For savings accounts, customers would be allowed three free cash withdrawals a month. From the fourth to the 10th withdrawal, banks would charge Tk 100 per transaction, rising to Tk 300 from the 11th withdrawal onwards.

For current accounts, ABB proposed a Tk 100 fee for withdrawals from the 20th to the 50th transaction in a month. From the 51st transaction onwards, the fee would rise to Tk 150.

The apex body of managing directors and CEOs of banks also proposed a Tk 500 fee to reactivate dormant accounts.

Besides, it sought BB approval to introduce new charges for loan management, monitoring and supervision, risk premiums, early settlement of demand and continuous loans, letter of credit (LC) opening commissions, handling and document endorsement copies.

The proposal also includes new fees for export LC cancellations, buyers’ credit arrangement, deal structuring, risk premiums and commissions on the sale of foreign currency in cash.

ABB also proposed increasing the fee for bank solvency certificates from Tk 200 to Tk 500 and doubling the cheque return fee from Tk 50 to Tk 100.

It also wants to raise charges for account maintenance, loan processing, LCs, bank guarantees, demand drafts, pay orders and several other banking services.

In its letter to the central bank, ABB requested permission for banks to set their own charges below the maximum ceiling according to their business strategy, service model and cost structure.

It also proposed allowing banks to raise the ceiling on charges by up to 10 percent a year in line with inflation, higher technology costs and rising service delivery expenses.

Contacted, Mashrur Arefin, chairman of ABB, told The Daily Star that the proposal was simply an adjustment to reflect the higher cost of providing banking services over the past six to seven years.

Mashrur, who is also managing director of City Bank, said the revision should be viewed in the context of years of inflation and the depreciation of the taka from Tk 87 to the dollar to about Tk 123 today.

“Imagine what the cost of printer toner was in 2020-21, when the banking industry last adopted the ongoing Schedule of Charges, and what it is today,” he questioned.

“Think of the minimum 7 percent inflation per year for six to seven years and the change in the dollar price. Think also of the many banks like us that have invested so much in recent years in setting up branches, sub-branches, agent banking points, and ATMs across the country in order to embrace financial inclusion.”

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“What was our locational reach in 2020, and what is it now?”

“Actually, a simple look at all the banks’ operating expenses then versus now, and comparing that with the meagre rise in corresponding revenue, will explain why we felt the need for a revision of the Schedule of Charges to be able to serve customers as they deserve,” added the ABB chairman.

The proposal has, however, drawn a sharp backlash from customers and business leaders.

Sohel Mahamud, an NCC Bank customer, said salaried people will end up paying more whether they keep money in the bank or withdraw it.

As per the ABB proposal, customers maintaining an average quarterly balance of more than Tk 25,000 in a savings account would pay Tk 300.

“This means banks are asking ordinary customers to pay for their own mismanagement and the burden of defaulted loans.”

“Charging Tk 500 to reactivate a dormant account, Tk 300 for a balance certificate, and raising fees for returned cheques and solvency certificates is simply unfair. If this is the way forward, whatever trust people still have in the banking system will soon disappear,” added Sohel.

“Ridiculous,” said MA Zaman, a private-sector employee who holds accounts with IFIC Bank and Standard Chartered Bank. “Why should I have to pay an additional charge just to withdraw my own money?”

“As a salaried person, I need to withdraw my savings at different times based on my needs. Imposing such a charge would be unfair,” Zaman said.

Taskeen Ahmed, president of the Dhaka Chamber of Commerce & Industry (DCCI), said the proposal is “highly unreasonable, hasty, and unacceptable” at a time when businesses are already struggling with high inflation and elevated lending rates.

Taskeen, who is also vice chairman of IFAD Group, said the move will shift the burden of the banking sector’s structural weaknesses, rising non-performing loans and higher operating costs onto businesses and customers, increasing the cost of doing business and discouraging investment and employment.

He said banks should instead focus on cutting administrative costs, closing unprofitable branches and strengthening governance to recover defaulted loans.

“Otherwise, such a decision will permanently undermine the competitiveness of the country’s trade and industrial sectors,” said the DCCI president.

The Chittagong Chamber of Commerce and Industry (CCCI) has also urged the BB not to approve new banking service fees or increases in existing charges, saying that higher costs will place an even heavier burden on businesses and consumers during a difficult economic period.

In a recent letter to BB Governor Md Mostaqur Rahman, CCCI President Mohammed Amirul Haque asked the central bank to reject the proposal.

The chamber said higher banking charges would raise the cost of doing business, especially for small and medium-sized enterprises, and ultimately lead to higher prices for consumers.

Exports through Benapole Land Port to India fell by nearly half in fiscal year (FY) 2025-26 as trade restrictions imposed by Bangladesh and India continued to disrupt bilateral commerce, according to port data.

The decline has affected Bangladesh's export earnings and government revenue while pushing hundreds of clearing and forwarding (C&F) agents, employees and port workers into financial hardship, stakeholders said.
Port statistics show that exports through Benapole dropped to 189,358 tonnes in FY2025-26, down from 381,440 tonnes in FY2024-25, a decline of 192,082 tonnes.

In FY2023-24, exports stood at 456,672 tonnes, meaning outbound shipments have fallen steadily over the past two fiscal years.

The export basket previously included jute and jute products, ready-made garments, chemicals, tissue paper, melamine products and fish.

However, traders say restrictions imposed by both countries have significantly reduced the movement of many of these goods through the land port.

The slowdown is also evident in truck movements.

Between 1 July and 15 July, during 13 working days, 3,038 Indian trucks carrying imported goods entered Bangladesh through Benapole, while only 753 Bangladeshi trucks crossed into India with export cargo.

Under normal trading conditions, around 450-500 trucks entered Bangladesh daily from India, while 250-300 trucks carried exports to India.

Import volumes have now fallen to around 200-300 trucks a day, while daily export trucks have dropped to fewer than 100.

Business leaders attributed the decline to reciprocal trade restrictions introduced after August 2024, combined with the impact of the global economic slowdown.

They said the restrictions have created a severe trade imbalance at Bangladesh's largest land port, affecting transport operators, warehouses, cargo handling businesses and thousands of workers on both sides of the border.

According to trade stakeholders, India suspended the use of its airports for Bangladeshi exports to third countries on 8 April 2025.

Bangladesh later banned yarn imports from India through land ports following demands from the Bangladesh Textile Mills Association to protect domestic industries.

On 17 May 2025, India imposed further restrictions on land-port trade involving garments, cotton, cotton waste, plastics, wooden furniture and fruits.

India subsequently suspended land-port imports of jute and jute products on 26 June, before extending restrictions on 11 August to four additional textile and jute-based product categories, including jute fabrics, ropes, twines and jute sacks.

Mustafizzoha Selim, office secretary of the Benapole C&F Agents Association, said Bangladesh should pursue alternative export destinations if Indian restrictions continue.

"We urge the government to take immediate diplomatic initiatives to secure the withdrawal of India's restrictions while simultaneously expanding access to alternative export markets," he said.

Matiar Rahman, president of the Benapole Land Port Importers and Exporters Association, said Bangladesh should utilise the Bangladesh-India-Nepal-Bhutan transit arrangement more effectively to increase exports to Nepal and Bhutan and reduce the current trade deficit.

He also called for the restoration of products currently barred from land-port trade.

Shamim Hossain, traffic director of Benapole Land Port, said political developments and reciprocal restrictions had significantly reduced cargo movement through the country's busiest land port.

"Trade volume has fallen considerably compared with normal times. As trade declines, government revenue collected through the port is also falling. The situation is affecting both Bangladesh and India," he said.

He added that both governments were taking initiatives to revive bilateral trade.

Jashore Chamber of Commerce President Mizanur Rahman Khan urged the government to pursue diplomatic efforts to remove restrictions on land-port trade.

"If the restrictions cannot be lifted, Bangladesh should accelerate efforts to expand trade with alternative markets," he said, adding that the Bangladesh-India-Nepal-Bhutan transit framework could help diversify export destinations for Bangladeshi products.

Bangladesh's development recipe is receiving a fillip as the emerging-financier Asian Infrastructure Investment Bank (AIIB) is set to prepare a sector-specific financing plan for the country, sources say.

Styled 'Multi-Year Rolling Pipeline (MYRP)', the financing package is focused on funding key sectors like infrastructure, connectivity, energy transition, climate resilience, urban services, and private capital mobilisation.

The Beijing-headquartered bank is outlining the funding plan for the period of 2027-2030 "keeping in mind Bangladesh's national development priorities", officials have said.

An AIIB delegation, led by its Director-General Rajat Misra, will visit Dhaka in the last week of this month with an extensive agenda to discuss the programme plans with the ministries and divisions concerned.

The team will also have a meeting with Finance Minister Amir Khosru Mahmud Chowdhury to discuss AIIB's ongoing and prospective supports in the years ahead.

According to officials concerned, the bank has so far approved 27 projects in Bangladesh worth nearly US$5.284 billion in core sectors, including energy, transport, urban development, and water, besides other critical infrastructures.

The AIIB, this June, approved and disbursed $600 million to Bangladesh in response to the government's request for emergency support for LNG import to meet the needs at the time of heightened external pressures and energy-market volatility.

Sources say during the visit, the AIIB team will have meetings with officials from the ministries of finance, environment, planning, power, energy, and mineral resources, local government, water resources, agriculture, disaster management and relief, road transport and highways division, and the central bank.

At the meetings with the finance division, the officials will have discussion on AIIB's climate-focused policy-based financing (CPBF) instrument in Bangladesh, implementation status of the National Adaptation Plan 2023-2050, and budgetary allocations for addressing environmental and social implications of policies, plans and programmes.

Officials of the ministry of environment, forest, and climate change will discuss role of the climate-partnership platform, and implementation of the updated locally led adaptation framework.

To be discussed at the planning commission are issues like incorporation of the National Adaptation Plan and the Nationally Determined Contributions (NDC-U) priorities in all ministries' Annual Development Programmes, consolidation of all Bangladesh Climate Change Trust Fund projects under ADP system, and introduction of climate budgeting of all ADP projects.

The implementation status of the Integrated Energy and Power Master Plan (IEPMP) and Solar Irrigation Roadmap, and Renewable Energy Policy will be discussed with the Power Division.

In Bangladesh Bank, the meetings will focus on the effectiveness of the Green Transformation Fund Refinancing Scheme, effectiveness of the Policy on Green Bond Financing for Banks and Financial Institutions, and the effectiveness of Guidelines on Sustainability and Climate-Related Financial Disclosure for Banks and Financial Companies.

At the meetings at Road Transport and Highways Division, the AIIB officials will discuss the procurement of electric buses for public transport, status of the Revised Strategic Transport Masterplan for Dhaka, 2025-2034, implementation of the New Operational Strategy for Railways, and implementation of New Energy Use Standards for locomotive, among others.

A senior Finance Division official told The Financial Express Thursday the AIIB gives importance on green transformation and climate-change issues keeping in mind the changed global and environmental perspectives.

"In the new multi-year funding pipeline, projects and programmes linked with sustainability and environmental issues will get priorities," he said.

Bangladesh’s halal industry has grown in recent years, but weak regulations, institutional gaps and costly certification processes are preventing exporters from benefiting from the rapidly expanding global halal market, businesses said at an event yesterday.
They said companies have invested heavily to obtain halal certification, but the process remains expensive and time-consuming due to separate certification fees for each product, repeated inspections and additional testing requirements.Exporters also pointed out that some required laboratory tests are not available in Bangladesh, adding further costs for manufacturers.The remarks came at a discussion titled “Halal for Export Diversification”, organised by the Bangladesh Chamber of Industries (BCI) at its office in the capital to explore ways to boost halal exports.
Khurshid Ahmad Farhad, general manager for international business and corporate affairs at Bombay Sweets and Company Limited, said the biggest challenge is the lack of international recognition for Bangladesh’s halal certification.

Many importing countries, particularly Saudi Arabia, require halal certificates from internationally accredited certification bodies. Since Bangladeshi certification bodies are not recognised by some of these countries, exporters often have to obtain additional certification from foreign organisations.

“This increases costs, duplicates the certification process and makes Bangladeshi products less competitive in global markets,” he said.

Khurshid added that the lack of internationally recognised accreditation has also affected exports. In some cases, companies had to remove halal logos from product packaging because importing countries did not accept Bangladesh’s certification.

This resulted in costly repackaging and delays in entering those markets, he said. Zia Hayder Mithu, chairman of Easy Cook Food Processing Limited, alleged that exporters are asked to make additional payments when applying for halal certificates from the Bangladesh Standards and Testing Institution (BSTI).

“When you go to get a halal certificate from BSTI, they ask for extra money. They ask for a contribution based on how many tonnes will be exported,” he said. He said many foreign buyers, after learning about the additional charges, simply ask exporters to print “Halal” on product packaging instead of obtaining a certificate.

“There’s no need for such a certificate. Rather, these certificates should be issued free of charge,” he said.

Ahmad Asif, chief executive officer of Bengal Meat Processing Industries Limited, and two other business representatives raised similar concerns.

Responding to the allegations, SM Abu Sayed, deputy director of the Halal Certification Wing at BSTI, denied any wrongdoing.

“Their allegation that bribery took place is entirely false, fabricated, and without any basis. We categorically reject this allegation,” he told The Daily Star.

NEED FOR A COMPLETE HALAL ECOSYSTEM

Md Mominul Islam, assistant professor of marketing at the College of Business Administration of the International University of Business Agriculture and Technology, said the global halal market is currently worth around $3.5 trillion and is expected to reach $9.45 trillion by 2040.

He said Bangladesh needs a complete halal ecosystem covering supply chains, education, certification and industry collaboration to develop the sector.

Malaysia has built a successful Shariah-compliant, knowledge-based halal economy, and Bangladesh can learn from its experience, he added.

Bangladesh has several advantages, including a strong agricultural base, competitive labour costs, industrial capacity and a Muslim-majority population, Mominul said.

However, policy gaps, limited academic preparedness and a lack of specialised education in halal science, supply chain management and marketing are preventing the country from fully using these strengths, he added.

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Md Deen Islam, professor of economics at the University of Dhaka, said the halal economy should not be viewed only as a religious concept but also as an economic opportunity based on quality, safety and consumer confidence.

Although the global halal market is worth around $3.3 trillion, Bangladesh’s presence remains limited despite having one of the world’s largest Muslim populations, he said.

Bangladesh has around 300 halal-certified manufacturers and 600-700 certified export products, while halal exports remain below $1 billion, he said.

As a result, the country’s share of the global halal market is still very small, he added.

Anwar-Ul-Alam Chowdhury, president of BCI, said the ready-made garment (RMG) sector alone accounts for nearly 82 percent of Bangladesh’s exports, earning $38.28 billion, while halal exports stand at only $850 million.

However, Bangladesh has significant potential in the halal market as it has the world’s third-largest Muslim population, with around 91 percent of its population being Muslim, he said.

“Bangladesh needs its own halal branding. If we look closely, after Indonesia, Bangladesh could have a domestic halal market worth $125 billion. Indonesia has created huge local demand by making halal certification mandatory in its domestic market,” he said.

Mohammad Hasan Arif, vice-chairman of the Export Promotion Bureau, said export diversification is crucial in the current situation, and halal products are among the key sectors with strong potential.

He said halal is not limited to agro-based and food products but covers a wide range of products and opportunities that Bangladesh can explore.

Shabbir A Khan, former president of the Bangladesh-Malaysia Chamber of Commerce and Industry, also spoke at the event.

Oil prices climbed more than 4 percent to their highest in more than a month on Friday. This came after the US and Iran stepped up attacks across the Gulf. Shipping was also threatened by a potential Red Sea closure.

This was on top of the restricted traffic through the Strait of Hormuz. Brent crude futures settled 3.87 dollars, or 4.59 percent, higher to 88.10 dollars a barrel. US West Texas Intermediate futures rose 3.54 dollars, or 4.48 percent, at 82.49 dollars.Both benchmarks were at their highest since mid-June. For the week, both benchmarks gained about 16 percent. Brent was on track for a third consecutive weekly gain. WTI was set for its second weekly gain.

The two foes expanded fighting on Friday. The US struck bridges and an airport in Iran. Tehran hit a power and desalination plant in Kuwait. Iran said it launched more strikes on US facilities in the Middle East.

This included the first direct attack in Syria. This followed a sixth straight night of US strikes on Iranian military facilities. Andrew Lipow, president of Lipow Oil Associates, commented on the situation.

He said the market is reacting to increasing hostilities between Iran and the United States. These culminated this week with nightly attacks on Iranian infrastructure and retaliation by Iran on its neighbours’ infrastructure.

He added that if more tankers come under fire and become damaged, oil prices will continue to move up. This is because shipowners will simply refuse to enter the Persian Gulf.

The collapsed truce between the US and Iran has resulted in a sharp decline in oil flows in the strait. This happened as Iran targets vessels transiting through it.

Before the Iran war, about 20 percent of global oil supplies flowed through the waterway. Iran has pressed the Houthis to close the Red Sea route if the US attacks Iran’s power infrastructure.

Tamas Varga, analyst at PVM Oil Associates, wrote in a note that any such development is a threat indeed. This is given that so much of Saudi Arabia’s exports have been redirected to the port of Yanbu.

These exports go via the East-West Pipeline to avoid Hormuz. Saudi Arabia has diverted more than 70 percent of its normal daily crude exports to the Red Sea port of Yanbu since the beginning of the war.

Shipments from Yanbu averaged 4 million barrels per day in recent weeks. This is up from around 973,000 bpd in the same period last year. Qatar’s defence ministry said its armed forces thwarted an Iranian missile attack early on Friday.

The interior ministry said a child was wounded by shrapnel resulting from interception operations. In a different conflict zone, Ukraine’s military said it struck a Russian oil refinery in the Yaroslavl region on Thursday.

The Bangladesh Securities and Exchange Commission (BSEC) will significantly strengthen oversight of brokerage houses and introduce an artificial intelligence (AI)-based market surveillance system to curb irregularities and restore investor confidence, BSEC Chairman Masud Khan said today (18 July).

Speaking at a mock parliament debate titled "Measures to resolve the trust crisis in the capital market" at the Bangladesh Film Development Corporation (FDC), he said the Dhaka Stock Exchange (DSE) has been instructed to transform its surveillance department into an AI-driven system within the next year.

Under the proposed system, any abnormal price surge in a stock will automatically trigger a trading suspension, reducing opportunities for market manipulation. He also announced plans to eliminate the use of "wet signatures" in securities transactions, describing them as a longstanding loophole for unauthorised trades.

The DSE is developing back-office software that will prevent brokerage houses from altering client information or transaction records, he said, adding that supervision of brokerage firms would be intensified to rebuild public trust.

Masud Khan said many retail investors, who now dominate Bangladesh's capital market, lack adequate financial literacy and often chase weak stocks based on rumours instead of company fundamentals. He stressed the need to strengthen the mutual fund sector, citing India's market as an example where mutual funds play a much larger role.

The BSEC chief also said the commission is revising the margin rules introduced last year after they discouraged many investors. Regulatory decisions, he said, would be taken in the broader interest of the market rather than to benefit specific groups.

On the merger of five banks, he acknowledged that shareholders would be affected but said the government and Bangladesh Bank must coordinate to ensure the fairest possible outcome.

The debate, organised by Debate for Democracy and chaired by its Chairman Hassan Ahmed Chowdhury, featured Prime University and Sonargaon University. Prime University, representing the government side, won the debate after arguing that weak regulatory oversight was the principal cause of the capital market's trust deficit.

The dollar was flat on Friday, but ended the week lower. This came as tame US inflation data led traders to cut bets on imminent rate hikes from the Federal Reserve.

Iran and the US exchanged intensifying fire in a week-long escalation. This has largely unravelled last month’s truce. The conflict spurred safe-haven bids for the dollar. It also pushed oil prices to near one-month highs.

Elias Haddad, global head of markets strategy at Brown Brothers Harriman, commented on the situation. He said the tech-led global equity market plunge has triggered a flight to safety.

He added that ongoing disruption to Strait of Hormuz traffic also drove this shift. The US dollar recovered some of this week’s losses, and global bond yields edged a bit lower.

The dollar index, which measures the US currency against six other units, was at 100.76. It was set for a weekly drop of 0.2 percent. The index hit a one-month low earlier this week.

This decline followed easing chances of a near-term rate hike. However, safe-haven flows have helped support the greenback. The euro remained flat at 1.1436 dollars, putting it at a 0.2 percent rise in the week.

Sterling fell 0.2 percent to 1.3455 dollars. It posted its third straight week of gains. This followed UK economic growth figures and expectations for greater political certainty.

Incoming Prime Minister Andy Burnham is reportedly set to pick a centrist finance minister. The Australian dollar ended with a third week of gains. It was 0.23 percent softer on the day at 0.6980 dollars.

This happened as risk-off sentiment prevailed. Global stocks fell on Friday. US consumer sentiment climbed to a five-month high in July.

Traders said the respite may prove temporary. This is due to renewed conflict in the Middle East driving up gasoline prices.

The Japanese yen was flat, fetching 162.44 per US dollar. It remained rooted near the 40-year low of 162.84 it touched at the start of the month.

Nader Ali Mondal, a farmer from Jadurchar village in Kurigram’s Roumari upazila, expanded jute cultivation from eight to 10 bighas this season after earning good returns last year. But heavy rainfall during April and May reduced yields, and he now fears losses.

“Last year I harvested around six maunds per bigha, but this year I expect less than five. If market prices are not favourable, I will not even recover my production costs.”

High-quality jute sold for around Tk 4,000 per maund (37.32 kg) in September and October last year, according to the Bangladesh Jute Association, before rising to about Tk 4,300 in November.

Like Nader, thousands of farmers expanded jute cultivation this season after favourable prices last year. But a prolonged dry spell followed by heavy rainfall during the crop’s early growth stage reduced plant height and fibre yields despite the larger cultivated area.

Officials and farmers said the adverse weather, coupled with higher fertiliser, pesticide and labour costs, has sharply reduced farmers’ profit prospects.

SHORTER PLANTS, THINNER HARVESTS

According to the Department of Agricultural Extension (DAE), jute has been cultivated on 720,000 hectares this year, with a production target of 1.52 million tonnes. Last year, the crop covered 705,000 hectares. One hectare is equal to about 7.5 bighas of land.

Encouraged by favourable prices in 2025, many farmers expanded cultivation this season, expecting another profitable harvest. However, weather conditions turned unfavourable soon after sowing.

Officials from the Rangpur Meteorological Office and the DAE said the Rangpur region received 504 millimetres of rainfall in April, nearly three times the 170 mm recorded a year earlier. Rainfall rose further to 786 mm in May from 195 mm in the same month last year.

Agricultural experts said jute requires only 150 to 200 mm of rainfall during April and May, making this year’s precipitation far higher than the crop’s optimum requirement.

Sirajul Islam, additional director of the DAE’s Rangpur regional office, said continuous rainfall during sowing and early growth left plants 2 to 5 feet shorter than usual, cutting yields by 40 to 60 kilograms per bigha.

“Farmers earned good profits last year because of favourable prices, but this year they are worried due to lower production,” he said.

According to the official, about 30 percent of the region’s jute has been harvested, while the remaining 70 percent is still in the fields. Fresh jute is expected to reach local markets within the next month.

DROUGHT AND RAIN SQUEEZE GROWERS

Jute farmers in Faridpur and Rajbari, two of Bangladesh’s leading jute-producing districts, are bracing for financial losses this season.

A prolonged dry spell forced many farmers to irrigate repeatedly, but fuel shortages limited irrigation. Heavy rainfall before harvest then caused widespread lodging, forcing premature harvesting.

Farmers say lower yields, higher irrigation costs and rising labour expenses have pushed production costs to record levels.

Faridpur produces around 2.14 lakh tonnes of premium-grade jute annually, making it the country’s leading hub for high-quality fibre.

Md Asaduzzaman, a farmer from Basakustia village in Pangsha upazila of Rajbari, said he cultivated jute on 45 decimals of land this year and spent around Tk 22,000 from sowing to retting.

“Because of the drought, the plants did not grow properly. Then excessive rainfall forced me to harvest earlier than expected,” he said.

Asaduzzaman expects no more than eight maunds of fibre, worth around Tk 32,000 to Tk 33,000 at current market prices. Department of Agricultural Extension (DAE) data show that jute has been cultivated on 86,531 hectares in Faridpur this season.

In neighbouring Rajbari, the crop covers 47,780 hectares across the district’s five upazilas in the 2026-27 fiscal year, underscoring the region’s importance to Bangladesh’s jute production.

Faridpur DAE Deputy Director Md Shahaduzzaman, however, said the recent rain is unlikely to affect overall production and has instead helped farmers ret harvested jute closer to their fields.

He added that labour wages typically rise during peak harvesting.

EXPERTS URGE CLIMATE RESILIENCE

Tarana Afroj Shajoni, chief inspector of the Department of Jute’s Rangpur regional office, said lower production is likely to reduce farmers’ incomes despite relatively favourable prices.

“Last year, farmers received up to Tk 4,500 per maund. Trading of the new crop has not yet started on a large scale, and prices will largely depend on market arrivals and demand,” she said.

She added that expanding export markets for raw jute and jute goods would strengthen domestic prices, ensuring fair returns for growers and encouraging future investment in cultivation.

Agricultural researcher and economist Mamunur Rashid said the latest situation highlights the growing vulnerability of Bangladesh’s traditional cash crops to climate variability.

Increasingly erratic rainfall is making jute cultivation more unpredictable, reducing productivity despite expanded cultivation, he said.

He called for developing climate-resilient jute varieties, improving field drainage, strengthening extension services, ensuring fair farmgate prices and expanding export markets to protect farmers’ incomes and sustain the long-term competitiveness of Bangladesh’s jute sector.

For more than a year, farmers have been incurring losses on almost every crop, said Amzad Hossain, a farmer from Char Mahipur village in Rangpur’s Gangachara upazila.

“We lost money on potatoes, barely recovered our costs from paddy, maize prices have fallen, and now jute yields have also declined. It is becoming increasingly difficult to survive.”

Apple overtook Nvidia on Friday to become the world’s most valuable company. This reshuffled the top ranks of tech heavyweights as investors reassess the outlook for artificial intelligence.

Apple was last valued at 4.88 trillion dollars as its shares held steady. Meanwhile, Nvidia was roughly at 4.86 trillion dollars, following a 3.5 percent decline.
The shift in the pecking order illustrates that investors are broadening their focus. They are looking beyond the most obvious beneficiaries of the AI boom, such as Nvidia, which had been at the helm for nearly a year.

Apple is reclaiming the top spot for the first time since April last year. Toni Meadows, head of investment at BRI Wealth Management, commented on the changing sentiment.

“Apple was seen as a laggard in the AI race because it wasn’t spending to develop models, but now sentiment has changed,” Meadows said.

“Apple is less exposed to capex intensity and better positioned to monetize AI via services, ecosystem lock-in, and hardware upgrades. The re-rating reflects confidence in earnings durability rather than speculative AI upside.”

For a company that was often seen trailing in the AI race, the milestone reflects Apple’s efforts to establish itself more firmly among the sector’s leading players.

It could shape how CEO Tim Cook’s final months at the helm are viewed.

Cook is preparing to cede his role to hardware veteran John Ternus in September.

Last month, the company rolled out a long-delayed overhaul of Siri. It bet the upgraded assistant would help close the gap with Big Tech rivals and new-age startups in the crucial AI race.

Some analysts say Apple is sitting on an AI gold mine in the form of the personal data that lives on every iPhone.

The data could make Siri’s answers more useful and the assistant more capable.

The challenge is that such data is locked away in operating systems in the name of privacy. The company would have to find a way to unlock its value.

Nvidia became the first company in the world to surpass a 5 trillion dollar market valuation in October. This landmark propelled it into a rarefied territory that was far beyond the reach of its rivals.

Being superseded by Apple does not necessarily signal a lasting change in the companies’ relative standing. The chipmaker remains a major beneficiary of AI-related spending.

Its graphics processors are powering much of the generative AI frenzy. Nvidia could also reclaim the top spot if sentiment shifts.

Besides, Apple is in a delicate position itself. It has raised prices to offset rising costs, a strategy that could hurt demand.

“I don’t see any meaningful distinction. Nvidia likely to be a significant participant in whatever happens going forward,” said Benjamin Hall, vice president, alpha research at Segal Marco Advisors.

However, the AI enthusiasm has spread to other corners of the semiconductor industry.

The bigger winners this year have been memory chipmakers such as Micron. It crossed 1 trillion dollars in market value in May as investors embraced the significance of memory chips in AI infrastructure.
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South Korea’s SK Hynix also listed on the Nasdaq earlier this month. This added another player to the race for investor attention.

“The new entrants to the market could spread out the focus away from the pure Magnificent Seven names into a wider number of names,” Hall said.

The eye-watering chips rally ran into turbulence in July. This happened as investors reassessed the sustainability of the artificial intelligence trade.

The shift knocked the Philadelphia SE Semiconductor index down almost 19 percent from its all-time highs. Despite the steep fall, the index has performed better than Nvidia so far this year.

The Bangladesh Investment Development Authority (bida), the Bangladesh Economic Zones Authority (Beza), and the Public Private Partnership Authority (PPPA) are set to be unified.

To this end, the Invest Bangladesh Bill, 2026, was passed in Parliament yesterday (15 July). It will come into effect from the date determined by the government through a notification in the official gazette.

Around the same time, Invest Bangladesh is expected to be formally launched under its new identity, said a press release.

Once the law comes into effect, the Invest Bangladesh Authority will operate as the country's apex investment development agency under the Prime Minister's Office, it said.

Its objective is to make investor services simpler, faster and more coordinated while bringing investment promotion, industrial zone management and public-private partnership functions under a single institutional framework.

"We thank the government for its clear focus on initiatives that can have a real impact on private investment attraction, investor support and policy advocacy. To bring in the investment Bangladesh needs for growth and job creation, investors need a true one-stop service framework. Such a unified investment agency has long been recommended by domestic and foreign investors.

"UNCTAD has also recommended this unification following its review of Bangladesh's business climate reform progress. We believe Invest Bangladesh will be able to serve investors more effectively and present Bangladesh's value proposition more strongly in a competitive global investment landscape," said Ashik Chowdhury, executive chairman of Bida and Beza, and chief executive officer of PPPA.

The release said the passage of the Invest Bangladesh Bill is an important step in implementing the government's 180-day plan, announced in March 2026, to improve the business-enabling environment. It will strengthen the investment service framework to support higher domestic and foreign investment, faster industrialisation, expanded public-private partnerships, and job creation.

Under the new authority, investment-related approvals, registration, import-export processes, incentives, industrial zone development, and relevant government services will be coordinated more effectively, it added.

The law also creates the scope for single-window clearance, one-stop services, digitalisation of approval and licensing processes, and the integration of investment- and business-related services into a single digital platform, the release said.

Key features of the Invest Bangladesh Bill include provisions to bring declared industrial areas, economic zones, and free trade zones under an integrated framework; define procedures and timelines for licences, approvals, and service delivery; clarify the approval framework for PPP projects; enable simplified approval of small PPP projects through relevant ministries or divisions; allow unused government land, establishments, shares, and rights to be used for productive purposes; and bring all investment- and business-related services onto a single digital platform.

The release also said the bill will help reduce policy inconsistencies in investment development, avoid duplication and overlap across agencies, and strengthen coordination across related functions. It creates a pathway for an integrated investment management framework aligned with international standards and global best practices.

Once the Invest Bangladesh Bill comes into effect as law, the Bangladesh Investment Development Authority Act, 2016, the Bangladesh Economic Zones Act, 2010, the Public Private Partnership Act, 2015, and the One Stop Service Act, 2018, will be repealed, consolidating the relevant mandates under Invest Bangladesh.

The International Monetary Fund (IMF) has projected Bangladesh's GDP growth to slow to 3.5% in 2026-27, warning that it could weaken further to below 3% over the medium term unless the country undertakes decisive fiscal and banking sector reforms.

"Staff projects economic growth to slow to 3.5% in FY27 and weaken further to below 3% over the medium term in the absence of decisive reforms to strengthen revenue mobilisation and create fiscal space, and to address weaknesses in the banking sector," IMF Mission Chief for Bangladesh Ivo Krznar said in a statement today (16 July).

Krznar warned that risks to the outlook remain tilted to the downside due to the combined impact of banking sector strains, fiscal challenges and external pressures.

An IMF staff team led by Krznar visited Bangladesh from 12 to 16 July after the government requested a new IMF-supported programme. It described the mission as a "fact-finding staff visit" to review Bangladesh's economic and financial developments, and reform priorities.

During the five-day visit, the delegation held discussions with government officials and other stakeholders. The team also participated in a separate roundtable on the banking sector.

The mission described its discussions as "constructive" and said talks on the possible size of a new loan programme and its associated reform commitments would continue.

Their findings will form the basis of the IMF's internal assessment of Bangladesh, including its macroeconomic outlook and policy assumptions, before formal negotiations on a possible new loan begin. The visit will also help identify areas requiring technical assistance.

Reforms will be phased under govt's priorities, Khosru tells IMF

After a meeting with the IMF team today, Finance Minister Amir Khosru Mahmud Chowdhury said the IMF had been informed that reforms under the proposed loan programme would be implemented in phases, in line with the priorities of the government.

Discussions have already taken place on the framework of the proposed programme, he told reporters after the meeting with the IMF delegation at his ministry today.

"The programme will be built on the policy directions already discussed. Reforms will be carried out with due respect to the elected government," he said.

He added that changes will be introduced in phases, depending on priorities. "Many reforms have already been implemented, while the remaining ones will be rolled out gradually."

IMF's recommendations

The IMF in its statement called for stronger revenue mobilisation and subsidy rationalisation to create fiscal space for higher social and development spending. It also stressed well-targeted social protection to shield vulnerable households from the impact of reforms.

It also urged Bangladesh to maintain tight monetary and prudent fiscal policies to curb inflation and rebuild foreign exchange reserves, while implementing the crawling peg exchange rate regime to strengthen exchange rate flexibility and external stability.

On the financial sector, the IMF said bank restructuring should be guided by a credible, comprehensive strategy, with a well-managed clean-up to preserve macro-financial stability.

The IMF said Bangladesh continues to face major challenges in revenue mobilisation, the financial sector and inflation, with the Middle East conflict driving up import costs and subsidy spending and adding to inflationary pressures amid persistent banking sector stress.

It said the medium-term outlook could improve if Bangladesh accelerated reforms to boost revenue collection and address banking sector vulnerabilities.

Fresh loan programme

Bangladesh entered a $4.7 billion IMF programme in 2023 to address a foreign exchange reserve crisis. The package was later expanded to $5.5 billion under the interim government.

After taking office, the BNP government opted not to continue the programme, arguing that several reform conditions agreed by the previous administration were no longer feasible.

On 1 June, the government asked the IMF to suspend the existing programme and begin talks on a new one. The IMF accepted the request. Bangladesh has so far received $3.595 billion under the previous arrangement.

The government is now seeking $4-4.5 billion under a new programme aligned with current economic realities. Finance officials hope formal negotiations can begin after the IMF-World Bank Annual Meetings in October, subject to a positive assessment of the ongoing mission.

The Bangladesh Investment Development Authority (Bida) is preparing a comprehensive industry database to improve the country's investment climate, identify investors' challenges, and support evidence-based policymaking.

The initiative was highlighted at a divisional workshop on the "Survey of Industries in Bangladesh" organised by the investment authority with support from the Asian Development Bank and the South Asian Network on Economic Modeling in Khulna today (16 July).

Government officials, private sector representatives, investors and local stakeholders attended the event, where discussions centred on the survey's objectives, investment opportunities, key challenges facing businesses, and the need for stakeholder cooperation in verifying investment-related data.

The investment authority's Director General Gazi AKM Fazlul Haque said that government policies are often formulated based on fragmented information. The survey, he said, will provide a clearer picture of the country's investment landscape, enabling better policymaking and a more accurate estimate of the number of active investors.

He added that Bangladesh should prioritise strengthening domestic investment, as satisfied local investors would eventually help attract more foreign investment.

Selim Raihan, a professor of Dhaka University's Economics department and executive director of the Asian network, said the survey aims to identify the problems investors face, recommend solutions, and establish a structured investment database that will support both investors and policymakers.

The economist said collaboration among government agencies, businesses and investors is essential for building a reliable investment information system.

Bangladesh is simultaneously undergoing transitions in energy, technology and economic restructuring, making a comprehensive investment information system increasingly important, he said.

Selim said investment-related data are currently scattered across institutions, leading to duplication, weak evidence and limited institutional capacity.

The database, to be developed by the investment authority with the Asian Development Bank support and the South Asian network's technical assistance, will be integrated with the "One Stop Service" portal, he said.

Asian Development Bank Bangladesh Public Sector Economist Tasnim Alam, who joined virtually, said Bangladesh needs more investment while reducing regulatory burdens on businesses.

Referring to the investment authority's "One Stop Service", he stressed the importance of simplifying investment procedures, developing skilled human resources, strengthening institutions and enhancing climate resilience.

Highlighting the significant potential for industries in Khulna, Managing Director of Achia Sea Foods Ltd Mohammad Md Tariqul Islam Zaheer noted that many local industries still lack modern technology and called for environmentally sustainable industrial development near the Sundarbans.

Tariqul also said Bangladesh has adequate investment policies, but weak implementation remains a major obstacle. Addressing these gaps, he added, would encourage investment and help meet growing domestic demand.

Additional Divisional Commissioner of Khulna Sifat Mehnaz said industrial development initiatives should extend beyond divisional headquarters to district-level economies.

She also stressed efficient land use, modernising agriculture with technology, and expanding cold storage facilities to reduce post-harvest losses, particularly for exportable fruits.

During the open discussion, participants highlighted persistent challenges, including licensing delays, electricity shortages, inadequate access to bank loans, high lending rates and difficulties in securing working capital for new industries.

They also identified investment opportunities in Khulna, including marine algae, pearl cultivation, coconut processing and peat production from coconut waste, alongside tomato, mango, mushroom and betel leaf-based industries.

After rebounding strongly over two years, the non-leather footwear exports lost momentum in the last fiscal year, logging only 1.6 percent growth as manufacturers grappled with high borrowing costs, capacity constraints and lingering political uncertainty.

Exports under the “Other Footwear” category -- covering synthetic, rubber, plastic and textile footwear -- rose to $531 million in FY2025-26 from $522 million a year earlier, according to the Export Promotion Bureau (EPB).

The five-year trend reflects both recovery and stagnation. Exports fell from $449 million in FY22 to $385 million in FY23 amid weak demand in the US and Europe, before rebounding to $417 million in FY24.

The slowdown in FY26 comes despite the “China Plus One” strategy, under which global brands are diversifying production beyond China.

Combined with leather footwear exports of $691 million, Bangladesh’s footwear exports totalled only $1.22 billion in FY26, far lower than regional competitors. For instance, Vietnam exports more than $25 billion worth of footwear annually and Indonesia more than $6 billion.

The sector’s modest export growth reflects weak investment rather than weak demand, said Riad Mahmud, managing director of Shoeniverse Footwear.

“Most manufacturers are already operating at or near full capacity. Without new factories or capacity expansion, export growth will inevitably remain limited,” he said.

Mahmud blamed the prolonged banking sector liquidity crunch, saying manufacturers are struggling to secure financing for expansion.

“Our factory is running at full capacity and orders remain healthy. The question is why we are not expanding,” he said. “The simple answer is that bank financing is no longer available.”

He said Shoeniverse now plans to raise funds through the capital market by listing its footwear unit, Sunipun Footwear Ltd, and is preparing its prospectus.

“We have already announced our intention to go public. If the regulatory process becomes faster, as the authorities have indicated, it could provide an alternative source of financing for manufacturers,” he said.

He added that the stagnation in capital machinery imports also reflects slowing industrial investment. “The orders are there, but production capacity is not increasing because investment has slowed. That is the real bottleneck.”

Hasanuzzaman Hassan, chairman of BLING Leather Products Ltd, said inadequate banking support cost his company a major export opportunity last year.

He said the company spent nearly two months trying to open a letter of credit (LC) for a $2.2 million export order from buyers in the United States and Europe. However, the process stalled because the bank did not provide the required support, prompting the buyers to cancel the order.

“As the LC issue remained unresolved, the buyers had already moved elsewhere,” Hassan said.

He also linked the sector’s slow growth in the last FY to economic and political uncertainty during the interim government’s tenure, which disrupted business operations and weakened buyers’ confidence.

“When buyers see uncertainty, they become cautious. Some delayed orders, while others shifted sourcing to competing countries,” he said.

Hassan expects conditions to improve under the elected government as a more stable political atmosphere is likely to boost buyers’ confidence. “If the policy environment remains stable and banks become more supportive, many of those buyers are likely to return.”

Md Nasrullah, general manager and head of international business at Apex Footwear, attributed the slowdown to rising production costs, political uncertainty and weaker buyer confidence, particularly in the European market.

“Running a factory has become much more expensive,” he said, citing higher gas and electricity tariffs, annual wage increases and lending rates of 12-13 percent.

He estimated gas-related production costs alone have risen by more than 40 percent.

Md Nasir Khan, chairman of Jennys Shoes, said the industry has already invested heavily in expanding capacity but cannot fully utilise it because of supply-side bottlenecks.

“The industry has brought in machinery worth billions of dollars and built the capacity to grow. But many factories are producing only a fraction of what they are capable of because raw materials are not reaching them on time,” he said.

Delays in importing raw materials, unreliable electricity supply and cumbersome regulations are disrupting production and raising costs, Khan said. Frequent power outages also make it harder to meet delivery schedules.

“When shipments are delayed, buyers lose confidence. Instead of expanding by 20 to 30 percent a year, the industry risks slipping into negative growth,” he warned.

Bangladesh's exporters and government officials have identified the country's fragmented halal certification system as one of the biggest obstacles to tapping the rapidly expanding global halal economy, calling for the establishment of a single national halal authority to boost competitiveness.

The global halal economy is now valued at $5.2 trillion, yet Bangladesh exported halal products worth only $943 million in the last fiscal year, according to industry leaders.

They pointed out that the country's export potential is being hampered by allegations of bribery, high certification fees, lengthy approval processes and the lack of international recognition for locally issued halal certificates.

Currently, both the Islamic Foundation and the Bangladesh Standards and Testing Institution (BSTI) issue halal certificates independently. Businesses argue that the dual certification system weakens Bangladesh's halal branding and creates unnecessary costs and delays.

The concerns were raised yesterday at a workshop titled "Halal for Export Diversification," organised by the Bangladesh Chamber of Industries (BCI) in Dhaka.

Speakers said Bangladesh has made progress in developing its halal industry in recent years, but institutional weaknesses and the absence of an effective regulatory framework have prevented the country from fully capitalising on the growing global market.

Exporters also said obtaining halal certification is expensive and time-consuming. Manufacturers are required to pay separate fees for individual products, undergo repeated factory inspections and submit multiple laboratory test reports, creating a significant financial burden.

Some of the required tests, including those for heavy metals and pesticide residues, cannot even be conducted domestically, they said.

Exporters allege bribery and lack of global recognition

Khurshid Ahmad Farhad, general manager for International Business and Corporate Affairs at Bombay Sweets and Company Limited, said companies face high fees and repeated inspections when seeking halal certification from the Islamic Foundation and BSTI.

He said the company initially paid Tk16-18 lakh in certification fees for several products. Although the fees were later reduced by half, the company has still not received its certificates despite paying around Tk14.5 lakh.

Farhad also alleged that companies are forced to pay bribes during the certification process.

"When applying for halal certificates, there are non-halal activities involved - you have to pay bribes," he alleged.

He further claimed that neither the Islamic Foundation nor BSTI is recognised by the Saudi Accreditation Center, forcing exporters shipping to Saudi Arabia to obtain halal certificates from accredited bodies in countries such as India, Singapore or Thailand.

As a result, Bombay Sweets removed halal logos from about 50 of its more than 200 products, spending approximately Tk62 lakh solely on redesigning packaging.
Calls for a single halal authority

During an open discussion, Zia Hayder Mithu, a BCI director and chairman of Easy Process Food, alleged that officials conducting halal certification inspections demand transportation and hospitality.

"They ask us to provide vehicles because a large inspection team will visit, and we have to arrange meals for them. After that, they charge Tk2 lakh annually for exports of 200 tonnes. If I have to pay these fees for thousands of products, I don't need such certificates," he said.

He called for halal certification to be provided free of charge.

Representatives from leading halal exporters, including Pran, Paragon, Akij, Meghna and Bengal Meat, also attended the workshop and expressed support for the exporters' concerns.

Huge untapped market

Mohammad Hasan Arif, vice chairman of the Export Promotion Bureau (EPB), said Bangladesh exported halal products worth $943 million last year, most of which were agricultural and processed food products.

However, he noted that major opportunities also exist in cosmetics, pharmaceuticals, fashion, tourism, manufacturing, Islamic finance, technology and education.

"The global halal economy is now worth $5.2 trillion. It presents a significant opportunity for Bangladesh to diversify its exports, products and export destinations," he said.

Delivering the keynote presentation, Md Mominul Islam, assistant professor of marketing at IUBAT, said the global halal market is projected to reach $9.45 trillion by 2040.

He said Bangladesh needs to develop a complete halal ecosystem encompassing supply chains, education, certification and industry collaboration, citing Malaysia as a successful model.

Although Bangladesh benefits from a strong agricultural base, competitive labour costs, industrial capacity and a Muslim-majority population, policy gaps, limited academic preparedness and a lack of specialised education in halal science and supply chain management continue to hold the sector back, he added.

Prof Md Deen Islam of the University of Dhaka said the halal economy should be viewed not only from a religious perspective but also as a business opportunity centred on quality, safety and consumer confidence.

"Despite being one of the world's largest Muslim-majority countries, Bangladesh has only around 300 halal-certified manufacturers, 600-700 certified export products, and halal exports of less than $1 billion, leaving its share of the global market negligible," he said.

Responding to the allegations of bribery, SM Abu Sayeed, deputy director (Halal Certification) at the Bangladesh Standards and Testing Institution (BSTI), told The Business Standard that the claims were "false."

"Those who made these allegations have not even applied to us for halal certification," he said.

Abu Sayeed added that the government-prescribed fee for obtaining a BSTI halal certification licence ranges from Tk1,000 to Tk5,000.

The Bangladesh Securities and Exchange Commission (BSEC) has asked the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) to submit a unified, comprehensive amendment proposal to reform the decade-old listing regulations.

The directive from the regulator comes after the premier bourse, DSE, sent three separate proposals over the last ten months seeking piecemeal changes to rules governing company inspections, direct listing, and delisting of securities.

To make change in the listing regulations, the commission needs to change some sections or provision at least four rules promulgated 2022 to 2025, and one directive promulgated in 2018, according to sources at the commission.Instead of passing isolated amendments, the capital market regulator wants a complete overhaul of the listing regulations, 2015, to align them with newer market policies enacted over the years.So, the regulator, incorporating all necessary changes to ensure listing regulation is timely updated, asked the bourse to submit comprehensive amendment proposals in the rules, according to a letter issued to the bourse this week.In the letter, the commission said subsequent promulgation of listing regulations, 2015, the commission formulated several regulatory instruments that are relevant to the listing regulations.

These rules are – securities exchange rules, 2020, prohibition of insider trading rules, 2022, mutual fund rules, public offer of equity securities rules, 2025, and corporate governance code, 2018.

The commission said these regulatory instruments contain provisions that are relevant to the amendment of the listing regulations, 2015.

According to the letter, the regulator received a proposal from the bourse almost nine months ago in September 2025, to amend section 54(1) regarding the inspection of listed companies.

As per the section, the exchange, on cause, may inspect at any time, if it is necessary to conduct an inspection for the interest of investors, the affairs of any issuer of listed securities with prior approval of the commission and shall report to the Commission within fifteen days of completion of such inspection.

Essentially, the bourse urged the commission to remove the requirement to obtain prior regulatory approval before inspecting any company, arguing that empowering the bourse in this manner would prevent time-consuming delays.

In March this year, the bourse also had sent another proposal to the commission on amending some sections for direct listing of the listing regulations.

In the listing regulations, 8 to 13 sections are mandated for the direct listing. Currently, the direct listing on the bourse is only allowed for the state-owned companies keeping a bar on applying the sections for private firms.

The present commission bats on the allowing private and multinational firms' enlisting on the bourse under direct listing. But to make it real, the commission and the bourse need to amend some rules and permission from the government.

On 22 June, the bourse sent another proposal to the commission overhauling the section 51, which dictates the delisting of securities. In the amendment proposals, as a part of launching a cleansing campaign to purge the toxic equities and protect investor interests.

Currently, the bourses have a mandate to delist any listed firm that fails to meet listing regulations. However, the existing rules lack a clear outline for the delisting process and investor protection.

The proposals include delisting companies that have remained closed for a prolonged period, failed to pay dividends or failed to hold annual general meetings.

Additionally, the proposals suggest that if directors or owners are found responsible for a company's poor financial condition through a special audit, their assets should be confiscated.

Other proposals include appointing special auditors to determine actual assets, restricting sponsors from obtaining bank loans, and barring them from serving as directors in any other listed company.

A World Bank-backed social- protection project has proposed tripling its budget to nearly Tk 28.14 billion, including higher consultancy costs and Tk 500 million for festival-related activities, drawing objections from the Planning Commission.

The Department of Social Services has sought up to a 33-per-cent increase in the monthly remuneration of individual consultants, officials said.

It has also proposed allocating Tk 500 million for ceremonies and festival-related activities under the project at a time when the government has tightened spending on several development programmes to ease fiscal pressures.

The proposals were included in the first revision of the "Strengthening Social Protection for Improved Resilience, Inclusion and Targeting (SSPIRIT)" project, which has been under implementation since July last year to establish a dynamic single registry of social safety net beneficiaries.

The revised project also aims to provide operational support, including a nationwide census, for implementing the government's election pledge to introduce the Family Card programme.

A Project Evaluation Committee (PEC) recently reviewed the proposal at a meeting chaired by Nasreen Jahan, Member (Secretary) of the Socio-Economic Infrastructure Division of the Planning Commission, sources said.

The PEC recommended dropping the proposed increase in consultants' remuneration and reducing allocations for several components, including festival-related expenditure.

Experts and economists questioned the rationale behind the proposed spending, saying further cost savings could be achieved through stricter scrutiny of the revised project.

An analysis of project documents shows that the consultancy allocation, originally set at Tk 21.02 million, has been proposed to increase to Tk 470.6 million under the revised project -- a more than twentyfold rise.

The increase is attributed to the appointment of additional consultants and proposed salary hikes for existing ones.

The monthly remuneration of the Procurement Specialist is proposed to rise to Tk 0.70 million in the first month from Tk 0.525 million. The average monthly remuneration over the 48-month project period is also proposed to increase to Tk 0.812 million from Tk 0.645 million.

However, consultancy fees under several other World Bank-supported projects generally range between Tk 0.4 million and Tk 0.5 million per month, raising questions over the justification for the higher rates.

The review also found that Tk 500 million had been proposed for festivals and related events under the Family Card programme.

The Department of Social Services said the funds would be used for various public engagement programmes and awareness campaigns.

The project already includes a separate allocation of Tk 250 million for promotional and advertising activities. Following discussions, the Planning Commission recommended reducing the proposed festival allocation to Tk 400 million.

The revised project also proposes Tk 800 million for training and Tk 5.5 billion for smart Family Cards and related ICT equipment.

Project Director Md Mosharraf Hossain said the proposal reviewed by the PEC was not an initial draft but a mature proposal prepared following extensive consultations and internal reviews.

"Retaining an allocation in the budget does not mean the entire amount must be spent. Since the Family Card programme is a government priority, allocations have been made based on assessed requirements," he said.

He added that assigning responsibility for the nationwide census to the Ministry of Social Welfare was a high-level policy decision and therefore beyond his authority to comment on.

Former Bangladesh Institute of Development Studies (BIDS) Director General Dr Mustafa K Mujeri said donor-funded projects often require consultants to meet development partners' requirements, but both the number of consultants and their remuneration should be subject to rigorous scrutiny.

He said expenditure on Family Card-related events should have clearly defined objectives.

Spending on beneficiary identification, transparency and public awareness could be justified, but expenditure merely on ceremonies or celebrations would be difficult to defend under the current economic circumstances, he added.

The original cost of the SSPIRIT project was approximately Tk 9.04 billion.

The first revision proposes increasing the cost to nearly Tk 28.14 billion by adding components such as a nationwide census, smart Family Card distribution and the development of a Dynamic Social Registry.

Planning Commission officials said such extensive changes in the project's scope and cost raised questions about revising the existing scheme.

They argued that if the scope had changed so substantially, a new project should be prepared instead.