Bangladesh can transport goods to China within 24 hours by road if it becomes part of the China-Myanmar economic corridor, Commerce, Industries, Textiles and Jute Minister Khandakar Abdul Muktadir said today (28 June).

The minister made the remarks while speaking to reporters after attending a workshop and reception programme for newly enrolled lawyers at the Sylhet District Bar Association.

He said China had already granted duty-free access to all Bangladeshi products, adding that Bangladesh's priority now is to attract more Chinese investment.
Muktadir also said the cabinet had recently approved the establishment of an 800-acre Chinese industrial park in Chattogram, which he expects will help strengthen bilateral economic ties.

Referring to the prime minister's recent visit to China, the minister expressed optimism that Bangladesh would see a significant inflow of Chinese investment in the coming years.

"The prime minister held meetings with the Chinese premier, senior leaders and major investors during the visit. As a result, we expect substantial Chinese investment in Bangladesh, which will also help reduce the trade deficit," he said.Responding to a question about criticism over the management committee of the Hazrat Shahjalal (RA) shrine in Sylhet, Muktadir said no one had been appointed to the committee on political grounds."The committee was formed through due process and in accordance with the rules," he added.Earlier, addressing the reception programme as the chief guest, the minister said lawyers play a crucial role in establishing the rule of law, ensuring justice and maintaining social order.He said a culture of impunity weakens both the rule of law and the social contract, adding that legal professionals are instrumental in protecting citizens' constitutional rights, including equality, freedom from discrimination, the right to life and personal liberty, and freedom of expression.

Muktadir also stressed the need to construct a new building for the Sylhet District Bar Association and establish a modern, regular training system to enhance lawyers' professional skills.

He said continuous training on artificial intelligence (AI), legal research, case analysis and courtroom advocacy would improve lawyers' capabilities and help produce more competent lawyers and judges in the future.

The minister also said he had pledged during the election campaign to make combating online gambling a priority.

He said a new law proposing tougher penalties for online gambling had already been placed before parliament and expressed hope that it would be passed after completing the legislative process.

He also highlighted the government's initiative to establish special tribunals to expedite the trial of drug-related offences.

The programme, chaired by Sylhet District Bar Association President Advocate Golam Yahya Chowdhury (Suhel), was attended by General Secretary Advocate Md Zubayer Bakht Zuber, acting District and Sessions Judge Mohammad Erfan Ullah, Divisional Special Judge M Ali Ahmed, Chief Judicial Magistrate Md Hasam Imam, Senior Judicial Magistrate Sudipta Talukdar, Metropolitan Magistrate Saiful Islam, leaders of the bar association, political figures and journalists.

Bangladeshi agritech startup iFarmer has won a $250,000 award from the OPEC Fund for International Development for helping smallholder farmers gain access to finance, agricultural inputs, advisory services, weather information and markets.

The company received the "Innovation for Development Award" at the OPEC Fund Development Forum, held at Vienna's historic Hofburg Palace on June 23 as part of the organisation's 50th anniversary celebrations, according to a press release issued today.
With the award, iFarmer became the first private-sector organisation and startup from Bangladesh to receive the honour.Since its inception, iFarmer has supported more than 300,000 farmers across Bangladesh through its integrated digital platform, improving access to essential agricultural services.The OPEC Fund for International Development is a development finance institution that provides financial assistance to developing non-OPEC countries.Its annual development award recognises organisations making significant contributions to development."This recognition reflects the immense potential of Bangladeshi innovation to solve global development challenges," said Tahmid Hasan, vice president of revenue at iFarmer."We are honoured to represent Bangladesh on this global platform and remain committed to building resilient food systems by empowering smallholder farmers through technology," he added.iFarmer was the only Bangladeshi organisation among this year's award recipients. The recognition is expected to enhance the company's global visibility and create new opportunities for international partnerships and to scale its impact in sustainable agriculture.

Bangladesh is evaluating China's proposal to establish an economic corridor through Myanmar and has not yet taken any position on the initiative, Foreign Minister Khalilur Rahman said today (27 June).

Speaking at a press briefing at the Ministry of Foreign Affairs in Dhaka on Prime Minister Tarique Rahman's visits to Malaysia and China, Khalilur said, "The primary objective is to improve regional connectivity, reduce transportation costs and transit time, and enhance Bangladesh's competitiveness."

Better connectivity is expected to support industrialisation, boost exports, and strengthen Bangladesh's economic integration with regional markets, he added.

China formally proposed the development of the Bangladesh-Myanmar-China economic corridor during talks between Chinese President Xi Jinping and PM Tarique in Beijing on Friday.

The prime minister returned home from Beijing on Friday, wrapping up his six-day maiden overseas visit.

Bangladesh and China on Friday unveiled an extensive joint communiqué during PM Tarique's visit to Beijing, announcing an upgraded bilateral partnership alongside agreements spanning trade, infrastructure, defence, connectivity and regional cooperation.

Among the key outcomes are China's support for the Teesta River Comprehensive Management and Restoration Project, backing for Bangladesh's aspirations to participate in BRICS as well as become a partner of the Shanghai Cooperation Organisation, plans for new strategic dialogue mechanisms and commitments to deepen cooperation in investment, ports, education and climate action.

During the press conference, the foreign minister said the two countries also discussed strengthening regional connectivity through multimodal transport links connecting Kunming with Bangladeshi ports.

In response to the question regarding what tangible gains Bangladesh achieved from the China visit, the foreign minister said, "We did not go with a begging bowl. This visit was meant to set the direction of the relationship between the two countries. If this is aligned, the rest will follow in the future."

Replying to another question, Khalilur said, "If Bangladesh can utilise Myanmar's existing ports and transport infrastructure, it would significantly reduce the time and cost of importing raw materials and transporting goods."

He continued, "Faster and cheaper logistics would improve Bangladesh's competitiveness, attract greater foreign investment, and make its manufacturing sector more efficient and export-oriented."

Responding to a question, he said the current discussions are focused solely on economic connectivity. "If peace and stability return to Myanmar's Rakhine State in the future, other forms of connectivity could be considered, but that is not part of the current proposal."

At a separate event in Sylhet today, Commerce Minister Khandakar Abdul Muktadir said Bangladesh can transport goods to China within 24 hours by road if it becomes part of the economic corridor.

A total of 17 memoranda of understanding (MoUs) were signed during the PM Tarique's visit to China.

Bangladesh-China ties reach highest level

The foreign minister said Bangladesh and China had agreed to elevate their bilateral ties to the highest level of cooperation.

"The relationship has been upgraded from a 'Comprehensive Strategic Cooperative Partnership' to a 'China-Bangladesh Community with a Shared Future' in the new era, opening a new chapter in bilateral cooperation. The new framework is expected to strengthen political trust, deepen economic cooperation, and reinforce long-term strategic collaboration between the two countries," he said.

"China does not maintain the highest level of bilateral relations with all countries. In Asia, only a handful of countries, including Thailand, Sri Lanka, Cambodia, Pakistan and Indonesia, enjoy such a partnership with China. Bangladesh has now joined that group," he added.

Khalilur said the most significant outcome of the visit was the substantial enhancement of the depth, breadth and quality of Bangladesh-China relations. The two sides also agreed to explore the establishment of a regular "2+2 Dialogue" involving their foreign and defence authorities.

Joint feasibility study on Teesta

The foreign minister said discussions on the Teesta River Comprehensive Management and Restoration Project had advanced significantly.

"For the first time, experts from Bangladesh and China will undertake a joint technical feasibility study. China has indicated that it is prepared to support the project's implementation if the feasibility study demonstrates that it is technically and economically viable," he said.

Asked about the project timeline, Khalilur said it was too early to provide a specific timeframe, as implementation would depend on the findings of the feasibility study.

On the Rohingya issue, he said, "China has pledged to work with both Bangladesh and Myanmar to help expedite efforts to resolve the Rohingya crisis and advance the repatriation process. Discussions among the parties are expected to intensify in the coming months to facilitate progress toward a sustainable solution."

When the mercury rises so do the costs for an economy as productivity melts and growth becomes lethargic, providing an additional challenge to Europe as it struggles with high energy prices.

“Extreme heat is emerging as a structural economic risk, with Europe highly exposed,” wrote the trade credit arm of European insurer Allianz as the continent swelters under its second heatwave of the year.

Europe has a number of weaknesses: an ageing population, dense urban centres with many buildings not built for extreme heat, and just 19 percent of households with air conditioning compared to 90 percent in the United States, the analysts noted.

Heatwaves are becoming frequent as Europe warms faster than other regions of the world, and many scientists consider human activity will cause more extreme weather events.

“France is working in slow mode,” recently observed Patrick Martin, head of Medef, France’s main employers’ organisation.

“Inevitably, it disrupts work and leads to less work being accomplished,” he told BFM television.

Allianz Trade has identified “a critical threshold” of around 30C beyond which productivity losses intensify rapidly.

According to AFP’s calculations more than 100 million people in Europe were set to experience temperatures in excess of 35C on Thursday, and nearly two-thirds of Europeans living where temperatures would surpass 30C.

In a blog post last year the European Central Bank said heatwaves in the spring, autumn and winter can boost economic activity, particularly construction, agriculture and outdoor dining.

“By contrast, heatwaves during the already warmer summers reduce economic activity, as physical exertion outdoors becomes increasingly impaired,” it said. Drops in productivity, the need to shift investment to climate adaptation, and energy price hikes that dampen purchasing power all contribute to a drop in economic activity.

ECB research found that summer heatwaves reduce regional activity of around one percent.

And in contrast to traditional views of a temporary disruption, the ECB found “the reduction in output is prolonged and even intensifies, reaching a trough of 1.5 percent lower after two years”.

The Banque de France’s new governor, Emmanuel Moulin, recently told France Inter radio that “there is clearly a negative effect on growth in the medium term”.

Extreme heat, which can provoke a hike in energy prices thanks to higher demand due to air conditioning, can also contribute to higher food prices and inflation over the medium term as it curtails yields and disrupts supply chains.

The ECB calculated that a 2022 drought caused European food prices to rise 0.7 percentage points. Olive crops were particularly affected, with the price of olive oil skyrocketing.

The central bank is concerned that climate change related increases in food prices could increase and create more difficulties for it to forecast inflation.

“Without a rapid shift that commits to climate adaptation and carbon neutrality, these phenomena risk becoming a long‑term structural drag on the economy,” said Hazem Krichene, a climate and sustainability economist at Allianz.

He called for better coordination at the European level to act preventively.

Allianz Trade ran a stress scenario under which the five hottest years in each country between 2014 and 2024 were repeated between now and 2030.

It calculated that it could lead to cumulative losses in gross domestic product of between five and seven percent.

That would be a hit of $240 billion for France, $147 billion for Italy, $131 billion for Germany and $120 billion for Spain.

Tax revenue would also be hit, causing an estimated drop of 1.8 percent in France, just as expenses on infrastructure and health care need to be boosted.

That would worsen the already difficult situation many European countries find themselves in concerning budget deficits and debt, with their capacity to borrow constrained.

Government's Export Promotion Bureau (EPB) sets sights high on external trade and proposes setting total goods and services export target at US$67 billion for the imminent fiscal year.

Proposed target for goods export is $58 billion for the fiscal year (FY) 2026-27, predicting over 21-percent growth, sources say.

And the earning from services export is projected at $9.0 billion, riding on an expected growth of over 26 per cent.

More than 80 per cent of the proposed export earnings are expected to come from the ready-made garment (RMG) sector, a longtime biggest export-earning item for Bangladesh.

The bureau expects the apparel-export receipts to reach $38.56 billion by the end of the current fiscal year. It proposes 21-percent higher shipments in the next fiscal year, leading to an earning of $46 billion.

The initial overall export-performance target for the outgoing fiscal was $55 billion.Accounting & Auditing

Apparel-sector leaders, however, have termed the target 'ambitious' by taking the overall situation, especially that of energy, into consideration.

Sources also say the recent energy and food crises caused by the US- Israel and Iran war, Middle East turmoil, and prolonged impact of the Russia-Ukraine war have had a negative impact on the country's economy like in many other countries around the world.

High inflation in developed and developing countries has reduced purchasing power of consumers, with their focus now on meeting essential goods requirement, they say, adding that suspension or keeping work orders on hold by foreign buyers, pressure to squeeze price have acted as obstacles to export growth.

Besides, exports to India have fallen following port restrictions, they note, adding that all these factors are also taken into consideration in drafting the target.

Asked about the higher targeting, EPB vice-chairman Mohammad Hasan Arif says they have drafted the proposal after discussion with "almost all the major stakeholders".

The EPB held a meeting on June 23 in this regard. Without giving details, he says, "We will send the proposal to commerce ministry early next week. "Government Agencies

Speaking to the FE on Thursday, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Mahmud Hasan Khan termed the garment target 'very ambitious' considering the exiting situations, especially that of gas and electricity supplies.

Industry has marketing ability, production capacity and infrastructure to achieve the target, he says, "but many factories can't use their full production capacity due to current gas and electricity supply which is rather day by day deteriorating".

"With existing gas and electricity supply, the target is very ambitious," he says, stressing the need for bringing the energy supply at a reasonable level to achieve the target.

Meanwhile, the country's exports entered a negative territory on a year-on-year basis in August 2025, when the country recorded a 2.93-percent fall mainly because of the negative growth of readymade garments.

The downtrend was followed by a decline of 4.61 per cent, 7.43 per cent, 5.58 per cent, 14.25 per cent, 0.50 per cent, 12.03 per cent, 18.07 per cent and 7.07 per cent in September, October, November, December, January, February, March and May respectively.

However, the export receipts grew by 24 per cent and 32 per cent last July and April respectively.

Bangladesh earned $43.79 billion from exports of merchandise during the July-May period of the FY 2025-26, reflecting a 2.55-percent year-on-year negative growth over the $44.94 billion earned in the corresponding period of last fiscal, according to EPB data.

The EPB has, however, projected that overall export would reach $47.82 billion at the end of June against $48.28 billion earnings in FY 2024-25.

Finance Minister Amir Khosru Mahmud Chowdhury sets out a three-pronged economic-resilience strategy for protecting Bangladesh from global economic turbulence and the fallouts from continuing instability in the Middle East.
FE

While elaborating on the Three-R strategy in parliament on Wednesday, he also unveiled government plans for simultaneously broadening the domestic tax base to strengthen public finances.

In written responses to queries, the minister outlined what he described as a "Three-R Strategy" -- Recovery and Stabilization, Restoration, and Reconstruction for Acceleration -- designed to safeguard macroeconomic stability, diversify exports and enhance the competitiveness of the economy.

The strategy that the finance minister outlined in his budget speech delivered on June 11 last comes as the government is facing a series of external challenges, including volatile energy prices, uncertainty in global trade.

To ease such a bundle of risks, the government is pursuing new labour agreements with Russia, Portugal, Romania, Brazil, Greece, Serbia and North Macedonia, while also seeking to reopen labour markets in Malaysia, Oman, the United Arab Emirates and Kuwait.

The government will maintain its 2.5-percent cash incentives for remittances sent through formal channel and continue efforts to bolster foreign-exchange reserves through export diversification, tighter controls on non-essential imports and exchange-rate stability.

The finance minister also says Bangladesh was preparing contingency measures to offset potential increases in global fuel, liquefied natural gas (LNG) and fertiliser prices, including diversifying energy sources, accelerating domestic gas exploration and maintaining subsidies where necessary.

Alongside the broader economic strategy, Chowdhury announces plans to bring 16 additional business sectors under a fixed value-added tax (VAT) regime from the 2026-27 fiscal year as part of efforts to increase revenue collection.

The sectors include groceries, garment and clothing retailers, confectionery businesses, cosmetics shops, household plastic and ceramic goods sellers, shoe retailers, hardware stores, decorators, mobile phone and electronics retailers, paint and sanitary fittings businesses, tile dealers, corrugated-sheet retailers, rod and cement traders, furniture stores, beauty parlours, sweet shops and restaurants.

According to the finance minister -- who has placed an upscale Tk 9.38-trillion national budget in parliament for the forthcoming fiscal year -- VAT collections reached Tk1.42 trillion during the fiscal year 2024-25.

In a separate parliamentary response, the minister said it remained difficult to determine the precise amount of money illegally transferred abroad from Bangladesh because of the absence of sufficient and internationally accepted data.

However, citing findings from the White Paper Committee established by the interim government, he notes that Bangladesh experienced an estimated $234 billion in illicit financial outflows between 2009 and 2023 -- an average of roughly $16 billion annually.

The committee has estimated that the outflows were equivalent to 3.4 per cent of GDP in fiscal year 2023-24, nearly one-fifth of the country's combined export and remittance earnings, more than 11 per cent of national savings and almost double the volume of net foreign aid and foreign direct investment inflows.C

The figures highlight the scale of the challenge facing the government as it seeks to restore confidence in the economy, strengthen foreign-exchange reserves and improve fiscal sustainability amid a turbulent global environment.

The government has initiated a process to engage international legal firms to help recover money linked to defaulted loans created through irregularities and corruption in the banking sector, Finance Minister Amir Khosru Mahmud Chowdhury told Parliament on Wednesday.

Responding to a question from Kurigram-1 MP Anwarul Islam, the finance minister said the government signed non-disclosure agreements (NDAs) with nine international law firms and begun the recruitment process on a "no win, no fee" basis to assist nearly 30 troubled banks in recovering non-performing loans.

As part of the first phase, legal proceedings have been launched in six cases involving former Land Minister Saifuzzaman Chowdhury, controversial businessman S Alam, and business groups associated with Beximco, Sikder Group, Nasa Group and Orion Group.

The minister said the international firms would help banks identify overseas assets and funds belonging to alleged loan defaulters and provide legal assistance to repatriate those assets to Bangladesh. The government plans to expand the initiative further in the future.

The information was provided during the parliamentary question-and-answer session held under the chairmanship of Speaker Hafiz Uddin Ahmed.

Replying to a question from Chandpur-3 MP Sheikh Farid Ahmed, the finance minister said Bangladesh currently has 193.25 million bank accounts.

Of these, 177.95 million are savings accounts, while 15.31 million are loan accounts.

He added that the government formulated the National Financial Inclusion Strategy (NFIS) with the goal of bringing all adult citizens under the formal financial system by 2026. Bangladesh's current financial inclusion rate stands at 64.5%.

In response to a question from Jamalpur-3 MP Mostafizur Rahman Babul, the minister said Bangladesh's external debt stood at $78.23 billion as of March 2026.

Concessional loans accounted for 61.97% of the total external debt portfolio, while non-concessional loans represented 38.03%.

Replying to a question from Mymensingh-8 MP Lutfullahel Majed, the finance minister said the number of registered taxpayers in the country increased to 13.83 million.Famous Quotations

The figure represents an 11.86% increase compared with the previous fiscal year.

Responding to a question from Gaibandha-4 MP Mohammad Shamim Kaisar, the minister said the government allocated Tk15.68 billion under the agricultural loan waiver programme for loans of up to Tk10,000 during the current fiscal year.

A total of 1.41 million farmers have benefited from the scheme.

The finance minister also informed Parliament that Bangladesh Bank had been providing regular emergency liquidity assistance to banks facing difficulties in repaying customer deposits because of liquidity shortages.

Responding to a question from reserved-seat MP Mosammat Shammi Akter, he said the central bank had provided Tk759.03 billion in emergency liquidity support as of 15 June.

In response to a question from Sirajganj-5 MP Amirul Islam Khan, the minister said 63 banks are currently operating across Bangladesh through 11,326 branches and 4,929 sub-branches.

Responding to separate questions from lawmakers from both the treasury and opposition benches, the finance minister said five Islamic banks -- Exim Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank and Union Bank -- have been brought under the Bank Resolution Scheme 2025.Geographic Reference

He said depositors of these banks are being repaid, and under the Deposit Protection Act 2026, each depositor is eligible to receive up to Tk200,000.

The minister added that various departments of Bangladesh Bank are monitoring other banks facing liquidity stress and that actions will be taken under the Bank Resolution Act 2026 if necessary.

He also noted that the insured deposit limit has been doubled from Tk100,000 to Tk200,000 under the Deposit Protection Act 2026. According to the minister, Tk12,000 crore has already been transferred from the Deposit Protection Fund to the current accounts of the merged Islamic banks to support depositor protection and financial stability.

The US Federal Communications Commission on Friday said ​it will ban the import of more equipment from a group of ‌Chinese manufacturers, the latest move by Washington to crack down on Chinese-made electronic gear.

The move expands an FCC ban imposed in 2022 on new models of telecommunications and video surveillance ​equipment made by Huawei, ZTE, Hytera, Hikvision, and Dahua, citing US national ​security risks.

The ban now includes old models, not just those ⁠designed starting in late 2022, of equipment used for "public safety, security of ​government facilities, physical security surveillance of critical infrastructure, and other national security ​purposes," the FCC said.

The expanded ban is set to take effect in early July. The FCC said the action "is necessary to protect national security by mitigating risks to the US communications sector."

The Chinese Embassy ​in Washington and the companies did not immediately respond to inquiries.

The FCC ​said it would allow Americans to continue to use equipment they already own.

The FCC has ‌taken ⁠a number of actions targeting Chinese tech, including banning imports of all new models of Chinese drones in December. In March it banned the import of new models of Chinese-made consumer routers, the boxes that connect computers, ​phones and smart devices ​to the internet.

The ⁠new order does not ban imports of prior models of drones and routers.

In October, the FCC voted 3-0 ​to block new approvals for devices with parts from ​companies on ⁠its list and let the agency bar previously approved equipment in some instances.

Hikvision sued in December challenging that decision, saying the agency exceeded its authority and ⁠lacked ​basis for the move.

The FCC is also considering ​prohibiting US telecommunications carriers from interconnecting with Chinese telecom firms, which would effectively ban Chinese ​telecoms from operating US data centers.

As global fashion turns away from fossil-fuel-based fibres, Bangladesh has a rare chance to stitch its past and future together through jute. That opportunity will not last forever.

​For decades, jute was far more than just another crop. It was the backbone of export earnings and a powerful emblem of national pride. Revenue from jute helped finance roads, ports, and basic infrastructure, while the crop shaped rural livelihoods across large parts of the country. For farmers, traders, and mill workers, jute was not just a commodity; it was a lifeline.
Then, synthetic fibres and plastics swept through global trade. Cheaper, mass-produced materials took over packaging, textiles, and everyday products. Step by step, jute was pushed to the margins of policy, investment, and even the national imagination. Mills closed, fields shifted to other crops, and the “golden fibre” faded from the centre of Bangladesh’s development story.Today, the global mood is changing again. Fashion brands are under increasing pressure from regulators, investors, and climate-conscious consumers to clean up their supply chains. The EU Green Deal and new due-diligence rules are already forcing companies to rethink what their clothes are made of, how fibres are sourced, and what happens to products at the end of their life. In this shifting landscape, materials that are natural, traceable, and biodegradable are gaining new importance.This is where jute returns to the conversation. Long known for sacks, ropes, and carpets, jute now has the potential to move into higher-value segments such as apparel, accessories, home textiles, and innovative packaging. Instead of relying almost entirely on imported cotton and synthetic fibres, Bangladesh can link its world-class ready-made garment (RMG) industry with a regenerative raw material grown in its own soil.

Such a shift would do more than create a new product line. It could redefine Bangladesh’s brand in the global fashion market -- from a low-cost manufacturing hub to a leader in sustainable, nature-based textiles. Garments blended with jute, jute-based denim alternatives, and stylish jute-rich fabrics could appeal to brands looking for authentic, climate-friendly stories to share with their customers.

The benefits at home would be wide-ranging. Stronger demand for jute could improve farm incomes, support rural employment, and encourage more resilient cropping systems. Because jute grows well in Bangladesh’s climate and requires relatively few chemical inputs, it fits naturally into a more sustainable agricultural model. Linking farmers, spinners, weavers, designers, and exporters around a modern jute value chain could spread opportunity across both rural and urban areas.

Of course, this transformation is not automatic. Jute fibre needs innovation in processing, blending, and finishing to meet the comfort, softness, and performance standards of global fashion. Designers and product developers must experiment with new textures, colours, and applications. Investors and policymakers will have to support research, technology upgrades, and market development so that jute textiles can compete at scale.

Yet the direction of travel is clear. As the world searches for credible alternatives to fossil-fuel-based fibres, Bangladesh holds a natural advantage that few countries can match. By reconnecting its RMG sector with its historic golden fibre, the country can revive a proud legacy while opening a new chapter of sustainable growth.

The choice now is whether to treat jute as a relic of the past or embrace it as a strategic material for the future. If Bangladesh chooses the second path, jute can once again become a symbol of creativity, resilience, and national confidence -- this time woven into the very fabric of global fashion. The moment to act is now.

The author is a former director of the Bangladesh Garment Manufacturers and Exporters Association

The government is set to undertake a Tk4,973.73 crore project to strengthen electricity distribution systems in industrially developed areas surrounding Dhaka to meet rapidly growing demand from industries, businesses and households.

The project, titled "Capacity Enhancement of Electrical Distribution Systems of 13 Palli Bidyut Samities Around Dhaka under REB," will be implemented by the Bangladesh Rural Electrification Board (REB) across 13 Palli Bidyut Samities in Dhaka, Gazipur, Mymensingh, Manikganj, Munshiganj, Narayanganj and Narsingdi districts.

According to the proposal, the initiative aims to modernise and strengthen distribution networks in rapidly industrialising areas, particularly Gazipur, Narayanganj and Narsingdi, where large factories and economic zones have significantly increased electricity demand.

Under the project, REB plans to add 1,265 MegaVolt-Ampere (MVA) of distribution capacity by 2031, ensuring an uninterrupted, reliable and affordable electricity supply for about 6.01 million existing consumers. It also aims to reduce system losses from 5.73% to 5.2% and cut the average duration of customer power interruptions (SAIDI) by 20%.

A feasibility study by the Infrastructure Investment Facilitation Company (IIFC) projected that electricity demand in the 13 Palli Bidyut areas will reach 5,082MW by 2033. Considering 70% loading and 10% diversity, the required distribution capacity will rise to 9,760 MVA.

Coverage areas and implementation details

The project includes construction of 52 new 33/11 kV substations, expansion of 12 existing substations, and construction or upgrading of about 4,200 kilometres of distribution lines, including 3,823 kilometres of new lines. It also includes installation of 158 kilometres of underground cable, 900 fault locators, three switching stations and three river-crossing towers.

Project areas include Savar, Dhamrai and Keraniganj in Dhaka; Kaliakair, Gazipur Sadar, Gazipur City Corporation, parts of Sreepur and Kapasia in Gazipur; Bandar, Rupganj, Sonargaon and Araihazar in Narayanganj; Manikganj Sadar and Saturia; Sirajdikhan, Louhajang and Tongibari in Munshiganj; parts of Narsingdi Sadar, Raipura and Shibpur in Narsingdi; Madhupur in Tangail; and Bhaluka, Trishal and Gafargaon in Mymensingh.

Palli Bidyut areas covered are Dhaka Palli Bidyut-1, 3 and 4; Gazipur Palli Bidyut-1 and 2; Mymensingh Palli Bidyut-1 and 2; Manikganj Palli Bidyut; Munshiganj Palli Bidyut; Narayanganj Palli Bidyut-1 and 2; and Narsingdi Palli Bidyut-1 and 2.

The proposal has been submitted to the Planning Commission, which has scheduled a Project Evaluation Committee (PEC) meeting on June 28. The commission has sought explanations over the project's cost increase from Tk4,733.74 crore in the feasibility study to Tk4,973.73 crore in the Development Project Proposal (DPP), a rise of nearly Tk240 crore.

It has also asked REB to clarify the project's alignment with the government's election manifesto and development strategies, expected permanent and temporary employment generation, the need for new lines and e-GIS substations, and higher unit costs of some components compared with similar projects.

Cost scrutiny and funding structure

According to commission documents, 96.55% of project expenditure has been allocated to machinery and equipment. The commission has also questioned consultancy, training, travel and administrative costs, including the rationale for training 660 personnel and consultancy expenses linked to the 4,200-kilometre network.

The government expects to secure Tk2,440 crore in loans from the Asian Development Bank (ADB), while Tk1,316.95 crore will come from government funds and Tk1,216.78 crore from REB's own resources.

REB Chief Engineer (Project) Md Shafiqur Rahman said the project was designed based on projected load growth and rising industrial and commercial demand around Dhaka. Tender documents have already been sent to the Power Division for approval, while advance procurement activities are expected to begin once required approvals are secured.

However, no work order will be issued until the project receives final approval from the Executive Committee of the National Economic Council.

Shafiqur added that ADB has agreed to finance the project, and advance tendering processes are underway, with key procurement activities expected to be completed by July.

The Bangladesh Investment Development Authority (Bida), in collaboration with the Bangladesh Embassy in China, will host an "Invest Bangladesh" seminar in Beijing today (25 June), aiming to attract long-term Chinese investment in key sectors of the country's economy.

Prime Minister Tarique Rahman is expected to attend the event as the chief guest.

Around 80 Chinese companies, most with extensive international operations and investment experience, are expected to take part in the seminar.

"Most of the participating companies have an international footprint and are potential long-term investors in Bangladesh," Nahian Rahman Rochi, executive member and head of business development at Bida, told The Business Standard.

The event will feature a presentation titled "Why Invest in Bangladesh", highlighting the country's investment opportunities, competitive advantages and ongoing reform initiatives. Investors will also have the opportunity to engage directly with Bangladeshi officials through a question-and-answer session.

The seminar will showcase opportunities in sectors such as renewable energy, healthcare, textiles, information technology, agro-processing and automotive industries.

"We will also be holding several bilateral one-to-one meetings with prospective and existing businesses from these sectors," Rochi said.

He added that Bida will present a range of recent initiatives aimed at addressing long-standing investor concerns, particularly regarding policy continuity and deregulation.

"China-specific initiatives, including Bida's office in China, the Chinese Economic Zone and the Chinese Desk at BIDA, will also be highlighted," he said.

According to Bida, Chinese investors have shown growing interest in sectors including electronics, semiconductors, electric vehicle batteries, advanced and technical textiles, logistics, medical devices and IT-enabled services.

The agency plans to promote Bangladesh's competitive advantages in these sectors, including its large workforce, market access and export potential.

Speaking at an event in Dhaka on 18 June, Bida and Beza Executive Chairman Ashik Chowdhury said advancing the Chinese Economic Zone would be one of the key investment priorities during the prime minister's visit to China.

"We expect to see meaningful progress that could pave the way for the commencement of on-the-ground work at the Chinese Economic Zone," he said.

Ashik also said China has expressed interest in establishing a second economic zone in Mongla, adding that important decisions on the proposal could emerge during the visit. Progress may also be made on establishing a BIDA representative office in China.

He noted that China has remained one of Bangladesh's leading sources of foreign direct investment (FDI) over the past five years, prompting the government to advance several investment promotion initiatives ahead of the Beijing seminar.

According to the latest Bangladesh Bank data, net FDI inflows into Bangladesh rose 39.36% year-on-year to $1.77 billion in 2025, compared with $1.27 billion in 2024.

China was the second-largest source of net FDI during the period, after the Netherlands.

After a downturn, inflation-fueling high-powered money has surged again, largely negating the effect of a contractionary policy pursued by the regulator to stem price rises.
FE

The money being injected into the market through some channels is stoking fear of higher monetary regime ahead.

Money-market experts have pinpointed several hikers, including the central bank's ongoing US dollar purchase from the market to stabilise the exchange rate, growing quasi-fiscal activities and the regulator's liquidity support to the struggling banks, which are largely contributing to the recent leaps in reserve-money growth.

Under a persistently tight monetary-policy regime adopted by the central bank to contain growing inflation, the inflow of the reserve money dropped to a negative growth of 0.12 per cent even in June last.

Since then, in a rebound, it has risen significantly in recent months, which the money-market analysts believe largely contributes to the upward trajectory of inflation over the last several months.

Apart from the regular liquidity-feeding instruments of the Bangladesh Bank, they say, the flow of subsidised credits or money injection through irregular arrangements keeps rising on the money market, which is paradoxical to the spirit of contractionary monetary-policy stance.Bangladesh economic report

As a matter of fact, the BB-guided tight monetary policy is not transmitting into the money market properly and not being able to contain the inflationary pressure at the expected level, which ultimately hurts common people through curtailing their purchasing power.

According to latest BB data, the growth of the reserve money was recorded 0.12-percent negative in June last year. Afterwards, it had started leaping to 2.52 per cent, 3.47 per cent, 9.23 per cent, 13.35 per cent and 14.39 per cent in July, September, December, February and April last respectively.

Reserve money is the total amount of currency in circulation plus commercial banks' deposits held at the central bank, acting as the foundation for the entire monetary system.

It is also called "high-powered money" because it forms the foundation for the expansion of bank deposits through the money-creation process.

Seeking anonymity, a BB official says the central bank, in fact, did nothing to control the higher inflation apart from continuing a higher policy rate of 10 per cent since October in 2024.

He says, "The volume of quasi-fiscal activities by the BB through which commercial banks avail credits from the regulator at subsidised rates, ranging from 0.5 per cent to 5.0 per cent, is still quite large."

On the other hand, the central banker adds, regular government borrowing from the central bank through using ways and means, amounting to maximum Tk 120 billion, and overdraft worth maximum Tk 120 billion, goes on to operate some 119 accounts at 8.0 per cent and 9.0 per cent respectively.

The central banker informs that they had planned to downsize the ceiling of ways and means and overdraft but high-ups of the regulator turned down the proposal in view of the current macroeconomic context of the country.

"Certainly, it (reserve money growth) is a concern for all of us because it fuels inflation to some extent," he told The Financial Express.Investment strategy advice

The rate of inflation keeps rising for the last several months. According to the data with Bangladesh Bureau of Statistics (BBS), the headline inflation rose to 9.42 per cent in May 2026. The inflation rate was 9.04 per cent in the previous month of April.

Apart from growing government bank borrowing and quasi-fiscal activities, Director-General of Bangladesh Institute of Bank Management (BIBM) Dr Md. Ezazul Islam mentions that the regulator has purchased more than $6.0 billion ($6.42 billion) since July 13 last to stabilise the exchange rate and injected huge volumes of money into the market.

"These all factors contributed to the rising growth of reserve money."

But the money-multiplier effect was not too high because of lower credit demand by the private sector. The credit appetite by the entrepreneurs is expected to increase in the coming days.

"If the uptrend in reserve money continues and private-sector credit growth is enhanced, it will be an issue of serious concern in the context of a tight monetary stance," the monetary economist

Finance Minister Amir Khosru Mahmud Chowdhury has said Bangladesh's total external debt stood at $78.22 billion as of March this year, warning that the country's debt servicing obligations are about to increase in the coming years.

The minister disclosed the information during the question-and-answer session in parliament today (24 June), in response to a written question from Jamaalpur-3 lawmaker Mostafizur Rahman Babul.

According to the minister, Bangladesh's total external debt amounted to $78.22 billion, of which 61.97% was concessional borrowing and 38.03% was non-concessional debt.

Highlighting key challenges in external debt management, Khosru said Bangladesh's access to highly concessional financing has gradually declined since its transition from a low-income to a lower-middle-income country, according to the World Bank's 2015 assessment.

At the same time, the volume of foreign borrowing has increased significantly over the years, resulting in a growing burden of principal and interest repayments in the future, he added.

The finance minister said the government has adopted a number of precautionary measures to ensure sustainable debt management. "Proposals for new foreign loans and related development projects are being scrutinised more rigorously to avoid financing unnecessary or low-priority projects through high-interest external borrowing."

"Only projects with high economic returns are being considered for foreign financing," he told parliament.

Khosru also informed that the government has intensified monitoring of foreign-funded projects to curb the long-standing practice of project delays and cost overruns.

In addition, the government is updating its Medium-Term Debt Management Strategy (MTDS) and conducting a Debt Sustainability Analysis (DSA) to strengthen the resilience and sustainability of public debt management, he said.

The minister further said work will soon begin on a broader plan for institutional and legal reforms aimed at improving the overall quality and effectiveness of the country's debt management framework.

Finance Minister Amir Khosru Mahmud Chowdhury has said the government is implementing a "Three-R Strategy" - Recovery and Stabilisation, Restoration, and Reconstruction for Acceleration - to increase foreign direct investment (FDI) and accelerate economic growth.

Under the medium-term economic strategy, the government aims to raise real GDP growth to 8.5% by FY2030-31, increase FDI to 2.7% of GDP and lift total investment to 40% of GDP, he told parliament today (24 June).

The minister disclosed the information while responding to a starred question from ruling party lawmaker Rafiqul Islam Hilaly of Netrakona-3.

He said the government is undertaking legal and institutional reforms after identifying barriers to business in an effort to create a more investment-friendly environment.

According to the minister, the reforms are aimed at reducing business costs and uncertainty, improving the ease of doing business, ensuring investment security and promoting deregulation across the economy.

To attract investment, the government has already launched BanglaBiz, a one-stop digital platform for investors, and published a heat map identifying 19 high-potential sectors for foreign direct investment.

The government has also taken initiatives to establish new export processing zones (EPZs) in Patuakhali and Jashore, alongside economic zones in Kurigram, Nilphamari, Chandpur and Kushtia.

These projects are expected to create around 250,000 jobs, the minister said.

Amir Khosru further said the government is pursuing Free Trade Agreements (FTAs), Preferential Trade Agreements (PTAs) and Economic Partnership Agreements (EPAs) with potential partner countries to expand trade and investment cooperation.

As part of efforts to diversify exports, duty-free imports of raw materials against bank guarantees have been allowed for food processing, light engineering, furniture, electronics, steel, plastics and leather industries.

The government is also expanding bonded warehouse facilities for promising export-oriented sectors, he added.

The finance minister said priority is being given to strengthening long-term financing mechanisms, including the capital market, corporate bond market, mutual funds, green bonds and sukuk.

Measures have also been taken to simplify stock market listings for eligible companies, make disclosure requirements more practical and strengthen investor protection, he said.

The combined initiatives will further strengthen Bangladesh's investment climate and support sustainable economic growth, the minister added.

Budget includes safeguards against global uncertainty, Middle East conflict

Responding in another question from ruling party lawmaker Md Jalal Uddin of Chandpur-2, the minister said in a written reply the FY2026-27 budget includes special measures to address risks arising from global economic uncertainty, the ongoing conflict in the Middle East and potential pressures on Bangladesh's external sector.

According to the finance minister, the government has adopted a strategy focused on export diversification and export growth, expanding remittance inflows and controlling unnecessary imports to maintain stability in the external sector.

He said strengthening foreign exchange reserves and ensuring exchange rate stability are also among the government's priorities.

Amir Khosru said the budget includes a number of measures to address the potential impact of rising international prices of fuel, liquefied natural gas (LNG) and fertilisers due to the Middle East conflict.

These measures include diversifying energy sources, accelerating domestic gas exploration, improving power and energy supply systems and continuing subsidy support where necessary, he said.

Amir Khosru said prolonged instability in the Middle East could negatively affect employment opportunities for Bangladeshi migrant workers and reduce remittance inflows, as the region remains the country's primary overseas labour market.

To reduce that risk, the government is placing special emphasis on creating new labour markets abroad.

He said Bangladesh is pursuing bilateral agreements with Russia, Portugal, Romania, Brazil, Greece, Serbia and North Macedonia as alternative destinations for migrant workers.

At the same time, efforts are underway to reopen labour markets in Malaysia, Oman, the United Arab Emirates and Kuwait, which have remained largely closed to Bangladeshi workers in recent years.

The finance minister also confirmed that the existing 2.5% incentive on remittances sent through formal channels will continue.

He said the government has adopted contingency plans to deal with any potential external sector shocks arising from global and regional developments.

Finance Minister Amir Khosru Mahmud Chowdhury sets out a three-pronged economic-resilience strategy for protecting Bangladesh from global economic turbulence and the fallouts from continuing instability in the Middle East.
While elaborating on the Three-R strategy in parliament on Wednesday, he also unveiled government plans for simultaneously broadening the domestic tax base to strengthen public finances.In written responses to queries, the minister outlined what he described as a "Three-R Strategy" -- Recovery and Stabilization, Restoration, and Reconstruction for Acceleration -- designed to safeguard macroeconomic stability, diversify exports and enhance the competitiveness of the economy.The strategy that the finance minister outlined in his budget speech delivered on June 11 last comes as the government is facing a series of external challenges, including volatile energy prices, uncertainty in global trade.To ease such a bundle of risks, the government is pursuing new labour agreements with Russia, Portugal, Romania, Brazil, Greece, Serbia and North Macedonia, while also seeking to reopen labour markets in Malaysia, Oman, the United Arab Emirates and Kuwait.Executive Branch

The government will maintain its 2.5-percent cash incentives for remittances sent through formal channel and continue efforts to bolster foreign-exchange reserves through export diversification, tighter controls on non-essential imports and exchange-rate stability.

The finance minister also says Bangladesh was preparing contingency measures to offset potential increases in global fuel, liquefied natural gas (LNG) and fertiliser prices, including diversifying energy sources, accelerating domestic gas exploration and maintaining subsidies where necessary.

Alongside the broader economic strategy, Chowdhury announces plans to bring 16 additional business sectors under a fixed value-added tax (VAT) regime from the 2026-27 fiscal year as part of efforts to increase revenue collection.

The sectors include groceries, garment and clothing retailers, confectionery businesses, cosmetics shops, household plastic and ceramic goods sellers, shoe retailers, hardware stores, decorators, mobile phone and electronics retailers, paint and sanitary fittings businesses, tile dealers, corrugated-sheet retailers, rod and cement traders, furniture stores, beauty parlours, sweet shops and restaurants.

According to the finance minister -- who has placed an upscale Tk 9.38-trillion national budget in parliament for the forthcoming fiscal year -- VAT collections reached Tk1.42 trillion during the fiscal year 2024-25.

In a separate parliamentary response, the minister said it remained difficult to determine the precise amount of money illegally transferred abroad from Bangladesh because of the absence of sufficient and internationally accepted data.Economic trends report

However, citing findings from the White Paper Committee established by the interim government, he notes that Bangladesh experienced an estimated $234 billion in illicit financial outflows between 2009 and 2023 -- an average of roughly $16 billion annually.

The committee has estimated that the outflows were equivalent to 3.4 per cent of GDP in fiscal year 2023-24, nearly one-fifth of the country's combined export and remittance earnings, more than 11 per cent of national savings and almost double the volume of net foreign aid and foreign direct investment inflows.

The figures highlight the scale of the challenge facing the government as it seeks to restore confidence in the economy, strengthen foreign-exchange reserves and improve fiscal sustainability amid a turbulent global environment.

The government has initiated a process to engage international legal firms to help recover money linked to defaulted loans created through irregularities and corruption in the banking sector, Finance Minister Amir Khosru Mahmud Chowdhury told Parliament on Wednesday.

Responding to a question from Kurigram-1 MP Anwarul Islam, the finance minister said the government signed non-disclosure agreements (NDAs) with nine international law firms and begun the recruitment process on a "no win, no fee" basis to assist nearly 30 troubled banks in recovering non-performing loans.Economics

As part of the first phase, legal proceedings have been launched in six cases involving former Land Minister Saifuzzaman Chowdhury, controversial businessman S Alam, and business groups associated with Beximco, Sikder Group, Nasa Group and Orion Group.

The minister said the international firms would help banks identify overseas assets and funds belonging to alleged loan defaulters and provide legal assistance to repatriate those assets to Bangladesh. The government plans to expand the initiative further in the future.

The information was provided during the parliamentary question-and-answer session held under the chairmanship of Speaker Hafiz Uddin Ahmed.

Replying to a question from Chandpur-3 MP Sheikh Farid Ahmed, the finance minister said Bangladesh currently has 193.25 million bank accounts.

Of these, 177.95 million are savings accounts, while 15.31 million are loan accounts.

He added that the government formulated the National Financial Inclusion Strategy (NFIS) with the goal of bringing all adult citizens under the formal financial system by 2026. Bangladesh's current financial inclusion rate stands at 64.5%.

In response to a question from Jamalpur-3 MP Mostafizur Rahman Babul, the minister said Bangladesh's external debt stood at $78.23 billion as of March 2026.Executive Branch

Concessional loans accounted for 61.97% of the total external debt portfolio, while non-concessional loans represented 38.03%.

Replying to a question from Mymensingh-8 MP Lutfullahel Majed, the finance minister said the number of registered taxpayers in the country increased to 13.83 million.

The figure represents an 11.86% increase compared with the previous fiscal year.

Responding to a question from Gaibandha-4 MP Mohammad Shamim Kaisar, the minister said the government allocated Tk15.68 billion under the agricultural loan waiver programme for loans of up to Tk10,000 during the current fiscal year.

A total of 1.41 million farmers have benefited from the scheme.

The finance minister also informed Parliament that Bangladesh Bank had been providing regular emergency liquidity assistance to banks facing difficulties in repaying customer deposits because of liquidity shortages.

Responding to a question from reserved-seat MP Mosammat Shammi Akter, he said the central bank had provided Tk759.03 billion in emergency liquidity support as of 15 June.Maps

In response to a question from Sirajganj-5 MP Amirul Islam Khan, the minister said 63 banks are currently operating across Bangladesh through 11,326 branches and 4,929 sub-branches.

Responding to separate questions from lawmakers from both the treasury and opposition benches, the finance minister said five Islamic banks -- Exim Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank and Union Bank -- have been brought under the Bank Resolution Scheme 2025.

He said depositors of these banks are being repaid, and under the Deposit Protection Act 2026, each depositor is eligible to receive up to Tk200,000.

The minister added that various departments of Bangladesh Bank are monitoring other banks facing liquidity stress and that actions will be taken under the Bank Resolution Act 2026 if necessary.

He also noted that the insured deposit limit has been doubled from Tk100,000 to Tk200,000 under the Deposit Protection Act 2026. According to the minister, Tk12,000 crore has already been transferred from the Deposit Protection Fund to the current accounts of the merged Islamic banks to support depositor protection and financial stability.

National Housing Finance PLC has recommended a 10% cash dividend for the year ended 31 December 2025, maintaining the same payout as the previous year despite ongoing challenges in Bangladesh's non-bank financial institution (NBFI) sector.

The decision was approved at a board meeting held today (24 June), according to a price-sensitive information (PSI) disclosure filed with the stock exchanges.

The company's annual general meeting (AGM) will be held virtually on 15 September at 12pm to seek shareholder approval for the dividend, while the record date has been fixed for 23 July.

Shares of the company rose 1.08% to Tk28.10 on the Dhaka Stock Exchange yesterday.

National Housing reported a significant improvement in profitability in 2025. Earnings per share (EPS) increased to Tk0.74 from Tk0.02 (restated) a year earlier.

Its financial position also strengthened, with net asset value (NAV) per share rising to Tk17.06 from Tk16.32 (restated). Net operating cash flow per share (NOCFPS) turned positive at Tk6.89, compared with a negative Tk19.70 (restated) in 2024.

Analysts said the turnaround in earnings and cash flow reflects an improvement in the company's core operations and financial health at a time when many NBFIs continue to face liquidity pressures, higher funding costs and slower credit growth.

The company also disclosed its first-quarter results for 2026. During the January-March period, EPS stood at Tk0.23, slightly higher than Tk0.22 (restated) in the corresponding quarter of the previous year.

However, NOCFPS declined to Tk4.77 from Tk8.61 (restated) over the same period. The company attributed the drop to lower customer deposits, which reduced operating cash inflows.

Despite the decline in cash flow, NAV per share increased further to Tk17.29 as of 31 March 2026, up from Tk17.06 at the end of December 2025.

Established in 1998, National Housing Finance is a specialised housing finance institution that provides loans for houses, apartments and residential plots. The company has also diversified into deposit mobilisation, SME financing, lease financing and project financing, helping broaden its revenue base beyond traditional mortgage lending.

The latest financial results show improvements in the company's profitability, asset base and cash flow position, while it maintained a stable cash dividend for shareholders. Sustaining earnings growth and strengthening deposit mobilisation are expected to remain important factors for the company's future performance.

The Dhaka Stock Exchange (DSE) extended its upward momentum for a second consecutive session today (24 June), as renewed buying interest in undervalued stocks helped the benchmark index close higher despite early selling pressure.

The DSEX, the prime index of the bourse, gained 11 points to settle at 5,616, while the blue-chip DS30 index edged up to 2,127.

Market breadth remained positive, with 182 issues advancing against 150 decliners, while 65 securities remained unchanged. Turnover also saw a notable increase, rising 14% to Tk940 crore, indicating improved participation from investors.

According to EBL Securities, the market maintained its positive trajectory as investors continued to accumulate fundamentally strong yet undervalued stocks amid expectations of market-friendly developments. Easing concerns over global shipping disruptions, particularly in the Strait of Hormuz, also contributed to a more optimistic market sentiment.

However, the session was not without volatility. The market faced selling pressure from the outset, with cautious investors booking profits. Sellers dominated trading until mid-session, but a resurgence of buying interest in the latter half helped the market recover and close in the green, reflecting growing confidence in near-term prospects.

Sector-wise, engineering stocks led turnover, accounting for 14% of total transactions, followed by pharmaceuticals at 13.8% and general insurance at 11.4%.

In terms of performance, financial institutions, IT, and mutual funds posted the highest gains, while miscellaneous, ceramic, and paper sectors faced corrections.

Among individual stocks, Beximco Pharmaceuticals topped the turnover chart, followed by Summit Alliance Port and BRAC Bank.

Nahee Aluminum, Saif Powertec, and Regent Textile emerged as top gainers, while Beximco Limited, International Leasing, and Peoples Leasing led the losers.

Islami Insurance Bangladesh Limited has recommended a 16% cash dividend for shareholders for the financial year ended 31 December 2025, down from a 20% payout the previous year.

The decision was approved at a board meeting held today (24 June), at which the company also endorsed its audited financial statements, according to a price-sensitive disclosure.

The general insurer reported a decline in earnings, with earnings per share (EPS) falling 11% year-on-year to Tk3.04 in 2025. As of end-December, net asset value (NAV) per share stood at Tk23.62, while net operating cash flow per share was Tk0.40.

The company has scheduled its annual general meeting for 27 August, to be held via a digital platform, where shareholders will vote on the dividend and financial statements. The record date has been set for 20 July.

Listed on the Dhaka Stock Exchange in 2009, Islami Insurance saw its shares close at Tk59 today (24 June). According to its latest shareholding structure, sponsors and directors hold 45.61%, institutional investors 9.97%, and general investors the remaining 44.42%.

The company has also been under regulatory scrutiny. In November 2025, the Bangladesh Securities and Exchange Commission (BSEC) launched an investigation following allegations by six former sponsor directors against current chairman Mohammad Sayeed Khokon, a former Awami League lawmaker and ex-Mayor of Dhaka South City Corporation.

The complainants alleged that since assuming leadership in 2012, Khokon has exercised excessive control over company operations, and that several board members were removed without justification and replaced with family members and affiliated entities.

The World Bank Board of Executive Directors has approved $450 million in financing to help Bangladesh strengthen the foundations of a stronger banking sector, a prerequisite for reviving the country's economic growth and job creation.

The financing, under the Financial Sector Support Project II, aims to strengthen the deposit protection system to safeguard small depositors and build Bangladesh Bank's supervisory capacity and systems, according to a World Bank press release issued today (24 June).

The project will also lay the groundwork for bank resolution and reforms in state-owned banks.

It will support the deposit protection fund by increasing its capital and advancing key reform priorities, including enhancing the deposit protection system, establishing an effective Emergency Liquidity Assistance framework, developing bank restructuring strategies, and supporting reforms in state-owned banks.

Bangladesh's banking sector faces significant challenges caused by weak corporate governance, regulatory capture and related-party lending.

The non-performing loan (NPL) ratio stood at 32.6% as of the end of March 2026, well above the 7.9% average for South Asian banks, while the system-wide capital-to-risk-weighted assets ratio was negative 2.6% as of the end of December 2025.

"Bangladesh's vision of attaining a trillion-dollar economy requires a stable and inclusive financial sector. But the banking sector – which accounts for about 90% of total financial sector assets – faces mounting stress," said Jean Pesme, World Bank Division Director for Bangladesh and Bhutan.

"This project will help Bangladesh put in place a set of essential tools, systems, and safeguards needed to protect small depositors and support confidence, restore stability in the banking sector, and allow it to support economic growth and job creation," he said.

The project will upgrade and modernise Bangladesh Bank's ICT infrastructure, helping address rising cybersecurity risks and close critical gaps in sector-wide data and analytics.

This will improve the central bank's ability to monitor risks, enhance data-driven and risk-based supervision, and strengthen the resilience of the financial sector.

"The project, which forms part of a coordinated approach by development partners including the IMF and the Asian Development Bank, supports measures to bolster crisis preparedness and build the authorities' capacity to manage banking sector stress," said Toshiaki Ono, World Bank Senior Financial Sector Specialist and Task Team Leader of the project.

Bangladesh and the United Kingdom (UK) have agreed to strengthen awareness and capacity-building efforts to help local exporters make greater use of the UK’s Developing Countries Trading Scheme (DCTS), as the country prepares for its graduation from the Least Developed Country (LDC) status.
The commitment came at a round-table discussion jointly organised by the Export Promotion Bureau (EPB) and the British High Commission in the city on Wednesday, bringing together representatives of leading export associations, chambers and trade bodies.The discussion focused on strategies to enhance the utilisation of DCTS preferences, address market access challenges and prepare Bangladeshi exporters for the changing trade landscape following LDC graduation.The event was inaugurated by EPB Vice Chairman and Chief Executive (Additional Secretary) Mohammad Hasan Arif, while British Deputy High Commissioner James Goldman delivered the opening remarks on behalf of the UK government.

Ellie Parker, regional trade for development adviser for South Asia, Central Asia and the South Caucasus at the British High Commission, presented the key features of the DCTS, highlighting opportunities for Bangladeshi exporters, recent improvements to the scheme and possible areas of cooperation to improve its utilisation.

Participants stressed the importance of ensuring that exporters can fully benefit from the preferential market access offered under the DCTS and discussed ways to overcome existing barriers in the UK market.

The EPB announced that it will publish a comprehensive DCTS booklet containing practical guidance on eligibility requirements, rules of origin, documentation procedures and the effective use of trade preferences.

A series of awareness and sensitisation workshops will also be organised in Dhaka and Chattogram in collaboration with the British High Commission and relevant industry associations to improve exporters’ understanding of the scheme.

The event was attended by representatives of major business organisations, including BGMEA, BKMEA, FBCCI, DCCI, MCCI, BCMEA, BPGMEA, BAPA, BAPI and other sectoral associations.

Participants welcomed the initiative and emphasised continued collaboration among the Bangladesh government, the British High Commission and the private sector to maximise DCTS benefits, diversify exports and enhance Bangladesh’s competitiveness in the UK market after LDC graduation.

Peoples Insurance PLC has approved a 10.5% cash dividend for the year ended 31 December 2025 at its 41st Annual General Meeting (AGM), held virtually today (24 June) in compliance with all regulations of the Bangladesh Securities and Exchange Commission (BSEC).

The meeting was chaired by the company's Chairman Jafar Ahmed Patwary and attended by more than 256 shareholders through a digital platform.

Representatives of the statutory auditor, scrutineer, observers from the Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and BSEC also joined the meeting virtually, according to a press release.

Shareholders approved the audited financial statements for 2025, the directors' report and the proposed 10.5% cash dividend.

They also endorsed decisions relating to the election and appointment of directors, as well as the appointment of statutory and compliance auditors for 2026.

The AGM was conducted by Company Secretary Sheikh Mohammad Sarfaraz Hossain FCS, who introduced the board members and outlined the voting procedures at the beginning of the session.

In his welcome address, Chief Executive Officer SM Azizul Hossain presented an overview of the company's operations and performance.

Addressing shareholders before the approval of the financial statements, Audit Committee Chairperson Rubaiyath Ara FCA said the company's operations had continued consistently since inception and that no extraordinary events had occurred during the reporting year.

She noted that all transactions with related parties were conducted on an arm's-length basis and under the same commercial terms applicable to third parties, in line with Bangladesh Accounting Standard (BAS) 24 on related-party disclosures.

She also said there were no significant deviations between the quarterly and year-end financial results, adding that the financial statements prepared by the management accurately reflected the company's operating performance, cash flows and changes in equity.