United News of Bangladesh

Commerce Minister Khandakar Abdul Muktadir on Tuesday announced plans to transform the Bangladesh Foreign Trade Institute (BFTI) into a modern, effective and financially self-sustaining institution capable of strengthening the country's international trade capacity. "The institution will be developed to achieve its own financial strength and become a self-reliant knowledge centre," he said while presiding over the 62nd Board Meeting of BFTI held at the conference room of the Ministry of Commerce. Industries will be expanded further to reduce unemployment: Minister Muktadir Emphasising the need for Bangladesh to better navigate the growing complexities of international trade, the minister announced that BFTI will form a permanent expert panel to assist with World Trade Organization (WTO) dispute settlement, trade policy analysis, and negotiations on bilateral and multilateral trade agreements.   "This panel will comprise experienced trade experts, legal professionals and researchers from both the public and private sectors," he said. The board meeting approved a recommendation to appoint a qualified Chief Executive Officer (CEO) to bring dynamism and efficiency to the institution. It also resolved to introduce a Post Graduate Diploma programme under BFTI, subject to approval from the University Grants Commission of Bangladesh, covering international trade, trade law and trade policy research to develop skilled human resources in these fields. The meeting further stressed the need to expand BFTI's research activities, strengthen training capacity and build research networks at both the national and international levels. Senior officials, including Commerce Secretary (Routine Duty) Md Abdur Rahim Khan, Economic Relations Division (ERD) Secretary Mohammad Shahriar Kader Siddiky, and Industries Secretary Md Obaidur Rahman attended the meeting.

Bangladesh has witnessed a significant spike in remittance inflows during the first 11 days of May, recording a staggering 56.4 percent growth to US$ 1.44 billion compared to the same period of last year.  The surge bolsters the country's foreign exchange reserves and signals a robust upward trend in the fiscal year 2025-26. According to the latest data from Bangladesh Bank, expatriates sent home US$1.44 billion in 11 days of May. In contrast, the remittance collection during the corresponding period in 2025 was $922 million. Bangladesh Bank permits remittance of ‘Visa Bonds’ and Security Deposits abroad On a single day on May 11, the country received $251 million in remittances, reflecting the increase of remittance in banking channels by the Bangladeshi migrant workers. The year-to-date figures are equally impressive. Cumulative remittance inflows from July 2025 to May 11, 2026 reached $30.77 billion. This represents a 20.9 percent growth compared to the $25.45 billion received during the same period in the previous fiscal year FY2024-25 (July 2024 to May 11, 2025). Senior central bank officials and economic analysts attribute this sustained growth to several strategic factors, including crackdown on hundi, incentives and digital integration. Increased vigilance by law enforcement and the central bank against illegal hundi channels has redirected funds into the formal banking system. The government’s 2.5 percent cash incentive, coupled with additional bonuses offered by several private commercial banks, has encouraged expatriates to send money via official routes. The rapid adoption of mobile financial services (MFS) and real-time bank transfers has made the remittance process more accessible for workers abroad. This influx of foreign currency comes at a critical time for the national economy. The steady rise in remittances is expected to provide a much-needed foreign exchange for the country’s Balance of Payments (BoP) and stabilise the exchange rate of the Taka against the US Dollar. "The 20% year-on-year growth is a clear indicator of the resilience of our migrant workers and the effectiveness of current policy interventions," noted a senior official at the Bangladesh Bank’s statistics department. If this momentum continues through June, FY26 is projected to set a new historic milestone for remittance earnings, further strengthening the nation's economic backbone and its capacity to meet import obligations.

A delegation of legal professionals under the banner of "Voice of Lawyers Bangladesh" submitted a memorandum to the Governor of Bangladesh Bank on Tuesday, demanding exemplary punishment for those involved in bank looting, corruption, and money laundering. The lawyers highlighted the dire state of the banking sector, particularly the liquidity crisis in Islamic banks, which has left thousands of depositors unable to withdraw their own savings. Speaking at a gathering in front of the Bangladesh Bank headquarters, Advocate Mohammad Delwar Hossain, a Supreme Court lawyer and coordinator of the organization, painted a grim picture of the current crisis. "The banking sector is in an extreme state of emergency. Customers are being turned away from branches; some are allowed to withdraw only Tk 2,000 to Tk 5,000, while many banks are unable to provide any cash at all," Hossain said. He cited a harrowing example of a cancer patient who was reportedly unable to withdraw Tk 1.5 crore for treatment, despite having the funds in his account. "The bank asked him to take only Tk 5,000. This is a tragic failure of our financial system," he added. The organization’s Chief Coordinator, Advocate Ashrafuzzaman, alleged that a specific group—leveraging political influence and intelligence agencies—forcefully took over the Board of Directors of Islami Bank on January 5, 2017. He claimed that approximately Tk 2.40 lakh crore has been laundered to nine different countries by this organized syndicate. "This stolen wealth must be repatriated immediately and returned to the legitimate depositors," he demanded. The lawyers also urged the central bank to cancel the "illegal appointments" of thousands of officers and employees who were allegedly recruited through political channels to facilitate these financial irregularities. The legal professionals expressed strong reservations about the recently enacted "Bank Resolution Act." They echoed growing industry concerns that certain clauses in the law could serve as a "rehabilitation mechanism" for former directors and looters involved in past scams. "We demand the immediate repeal of controversial sections of this act that allow corrupt individuals to regain a foothold in the banking sector," the memorandum stated. The speakers noted that Islami Bank was once a pillar of the country's economy, but a vested local and international quarter has worked to make the Islamic banking system dysfunctional. They called for a restoration of the sector’s integrity to ensure investment and deposit activities can return to normalcy. While the lawyers were unable to secure a direct audience with the Governor despite a prior application, the memorandum was officially received by the Governor's office. The "Voice of Lawyers" warned that if visible action is not taken against the identified "looters and launderers," they would continue to advocate for the rights of depositors through legal channels.    

A listing agreement was signed on Tuesday between Dhaka Stock Exchange PLC (DSE) and BRAC Bank PLC to list the ‘BBL Second Subordinated Bond’ on DSE's Alternative Trading Board (ATB) platform, marking another step in the gradual expansion of Bangladesh's corporate bond market. The signing ceremony, held at DSE's office, was attended by DSE Managing Director Nuzhat Anwar and BRAC Bank Managing Director and Chief Executive Officer Tareq Refat Ullah Khan, along with senior officials from both organisations. Representatives from Lead Arranger BRAC EPL Investments Ltd and Trustee UCB Investment Ltd were also present. With the inclusion of the BBL Second Subordinated Bond, the DSE ATB platform now lists a total of eight bonds and one equity instrument. DSE's Alternative Trading Board was established to provide a regulated and transparent secondary market for fixed-income instruments, including bonds and other debt securities, which are otherwise thinly traded in Bangladesh's capital market ecosystem. The platform is seen as a critical infrastructure for deepening the country's corporate bond market, which has long remained underdeveloped compared to the equity segment.

Asian stock markets traded mixed on Tuesday as record gains on Wall Street lifted investor sentiment, but concerns over rising oil prices and the ongoing Iran conflict kept markets cautious. Japan’s Nikkei 225 advanced 0.7 percent to 62,881.03. South Korea’s Kospi fell 1.2 percent to 7,726.30, with analysts saying the decline reflected concerns over heavy dependence on artificial intelligence-related stocks. “Global markets are relying too much on a small group of AI companies, making the current rally appear strong but potentially vulnerable,” said Stephen Innes of SPI Asset Management. Australia’s S&P/ASX 200 slipped 0.3 percent to 8,676.60. Hong Kong’s Hang Seng edged up 0.2 percent to 26,467.50, while China’s Shanghai Composite lost 0.4 percent to 4,208.00. Oil prices continued to rise as fears grew that the conflict with Iran could drag on. US benchmark crude gained 91 cents to $98.98 a barrel, while Brent crude, the global benchmark, rose 90 cents to $105.11 a barrel. Investor concerns increased after President Donald Trump said the US-Iran ceasefire was on “life support” following Washington’s rejection of Iran’s latest proposal to end the conflict. The war has pushed Brent crude prices sharply higher from around $70 a barrel before the conflict began, increasing inflation concerns worldwide. Disruptions in the Strait of Hormuz have also delayed oil shipments from the Persian Gulf to global markets. Despite these worries, stronger-than-expected corporate earnings have supported confidence that the US economy remains resilient, even as consumers face higher fuel costs and tariffs. On Monday, the S&P 500 rose 0.2 percent to close at a new record high of 7,412.84. The Dow Jones Industrial Average added 95.31 points, or 0.2 percent, to 49,704.47, while the Nasdaq Composite gained 27.05 points, or 0.1 percent, to a record 26,274.13. In the bond market, the yield on the 10-year US Treasury note increased to 4.40 percent from 4.38 percent late Friday. In currency trading, the US dollar rose to 157.57 Japanese yen from 157.12 yen, while the euro slipped to $1.1761 from $1.1787.

Bangladesh Bank has signaled its intent to support the revival of closed industrial units through a strategic refinancing package, but has firmly ruled out blanket bailouts for non-viable or willfully defaulted businesses. The decision came following a high-level meeting between central bank officials and a delegation of industrial stakeholders at the Bangladesh Bank headquarters on Monday. Bangladesh Bank Governor  Md. Mostaqur Rahman chaired the meeting. During the meeting, stakeholders raised concerns about the growing number of shuttered factories. In response, the central bank clarified that while a refinancing package reportedly around Tk 40,000 crore is being considered, the support will be strictly merit-based.   "We need to investigate why these industries closed down—whether it was due to power shortages, lack of buyers, or market fluctuations," said Abdul Hai Sarker after the meeting. He is the Chairman of Bangladesh Association of Banks (BAB) and also Chairman of Purbani Group, who joined the meeting as a representative of the industrial delegation. "The Governor has assured us that only 'genuine' businesses facing temporary working capital shortages will be supported to ensure production resumes and defaults are avoided,” said BAB Chairman. The discussion also touched upon the controversial Section 18 (Ka) of the Bank Resolution Act. Business leaders expressed "deep apprehension" regarding the potential implementation of this law, fearing it might be misused to allow former directors—who were allegedly involved in past bank looting—to regain control of financial institutions. However, central bank sources indicated that the stringent conditions attached to the act would make it practically impossible for such controversial figures to meet the criteria for return. Stakeholders urged the government to handle this legislative matter with extreme caution to protect the sector from further "looting cultures." The central bank also reiterated that the planned merger of five specific banks will proceed without change. Despite initial skepticism from some quarters, the Governor emphasized that the merger is essential to put the banking sector back on "the right footing." Industrialists urged the government and the central bank to consult with general stakeholders before finalizing major policy interventions. "We are elected representatives and industrialists; we are here to share our fears and ground realities. Policy-making is more effective when it includes those who are actually operating in the sector," in response to a query of journalists, a representative of businessmen said.

In a major push to decentralise sustainable industrialisation, Bangladesh Bank has established a special Tk 1,000 crore refinancing fund dedicated to making rural and local industries environment-friendly. Under this scheme, entrepreneurs will be able to access credit at an interest rate of maximum 5 percent. The Sustainable Finance Department of the central bank issued a circular in this regard on Monday. According to the directive, this amount has been carved out of the central bank's existing Tk 5,000 crore Green Transformation Fund (GTF) specifically to support grassroots and localised industrial growth. The fund is designed to finance the import of environment-friendly machinery or the purchase of locally manufactured green equipment. Eligible sectors for financing include renewable energy (installation of solar and wind power systems), resource management (energy efficiency, water conservation, and wastewater management), waste management (recycling activities and waste-to-energy projects) and work environment (-improving factory safety and occupational health standards). The central bank has structured the fund to be highly attractive for both lenders and borrowers. The borrower interest rate has been capped at a maximum of 5 percent. Participating banks will receive funds from the central bank at a mere 1 percent interest. An individual entrepreneur can borrow up to Tk 5 crore and banks can provide up to 80 percent of the total import or purchase cost. The loan term ranges from two to five years, including a maximum six-month grace period. Eligibility and Mandatory Green Criteria To ensure the funds achieve their environmental goals, the central bank has set a mandatory condition: at least 10 percent of the total electricity used in the financed project must be sourced from renewable energy, such as solar power. Eligible Banks All state-owned commercial banks are eligible to distribute these loans. Private and foreign commercial banks must maintain a non-performing loan (NPL) ratio below 20 percent to participate. Loan defaulters (individuals or institutions) are strictly prohibited from accessing this facility. Impact on Local Industries Bangladesh Bank believes this initiative will significantly bolster the capacity and competitiveness of local industries. By lowering the cost of green technology, the fund is expected to accelerate the transition of small and medium-scale rural enterprises into sustainable, resource-efficient entities, aligning with the national goal of achieving a green economy.

In a significant move to ease international travel for Bangladeshis, Bangladesh Bank (BB) has allowed the remittance of mandatory visa bonds and refundable security deposits required by foreign embassies, high commissions, and other visa authorities. The central bank issued a circular on Sunday, instructing Authorized Dealer (AD) banks to facilitate such payments on behalf of visa applicants. According to the new directive, banks are now permitted to issue international or virtual cards in the name of the applicant, specifically for this purpose. These cards can be pre-loaded with the necessary bond or security deposit amount. Furthermore, existing international cardholders can reload their cards under their travel quota to cover these specific costs. However, the central bank emphasized that these funds must exclusively be used for visa-related financial requirements. A key clause in the circular mandates the swift repatriation of these funds once the relevant embassy or authority refunds the bond or security deposit. “Banks are required to maintain separate registries to track these transactions. They must regularly monitor and report the progress of fund returns to the central bank,” stated in the circular. Before remitting any funds, banks must verify several essential documents, including-a valid passport of the applicant, a formal requirement letter or invoice from the embassy or relevant authority, and references or acknowledgment letters related to the visa application. The central bank clarified that these transactions can be processed through Exporter’s Retention Quota (ERQ) accounts, Resident Foreign Currency Deposit (RFCD) accounts, or international cards issued against such accounts. Industry insiders believe this decision will remove a major bottleneck for Bangladeshi travelers, students, and professionals applying to countries that require financial guarantees as a prerequisite for visa approval, making the overall process more transparent and accessible.

Dhaka Chamber of Commerce & Industry (DCCI) on Monday urged the government to prioritise the development of inland waterway infrastructure to reduce the cost of doing business, calling for planned dredging, riverbank recovery and private sector involvement under a Public-Private Partnership (PPP) framework. DCCI President Taskeen Ahmed made the call during a meeting with Water Resources Minister Md Shahiduddin Chowdhury Anee at the Secretariat. Taskeen Ahmed said as a riverine nation, Bangladesh's inland waterways have historically been the most cost-effective means of transporting industrial raw materials and finished goods, yet their full potential remains underutilised due to siltation and illegal river encroachment. “We need to prioritise riverbank recovery, planned dredging and necessary infrastructural development so that the business community can benefit from cost-effective and efficient trade logistics,” he said. The DCCI President expressed optimism about the government's plan to excavate 20,000 kilometres of canals over the next five years, saying the initiative will significantly boost inland water transport, ease business costs and simultaneously improve irrigation, agricultural productivity and overall economic growth. He also highlighted the strategic value of an approximately 112-kilometre circular waterway connecting the Buriganga, Turag, Balu, Shitalakkhya and Dhaleshwari rivers around the capital, describing it as a viable alternative transport corridor that could help ease Dhaka's chronic traffic congestion. Responding positively, Minister Anee reaffirmed the government's commitment to sustainable development of inland waterways and said several initiatives have already been set in motion. He called on the private sector to actively participate in the nationwide canal excavation programme, noting that its successful completion will foster environment-friendly transport networks and stimulate local economic activity across the country. DCCI Senior Vice President Razeev H Chowdhury, Vice President Md Salem Sulaiman and acting Secretary General Dr AKM Asaudzzaman Patwary were also present at the meeting.    

Bangladesh's trade policy has long operated as a contradictory mix of export promotion and import protectionism, with its average tariff burden of 28 percent far exceeding the global average of 6 percent and even surpassing peer lower-middle income countries at 7.2 percent, a leading economist said Monday. Zaidi Sattar, Chairman of the Policy Research Institute of Bangladesh (PRI), made the observations while delivering the keynote address at a roundtable titled “Trade Policy, Industrial Protection, Investment Impacts, and Consumer Welfare,” organised by PRI's Center for Trade Policy and Protection Research (CTPPR) with support from the Foreign, Commonwealth and Development Office (FCDO). Restaurant owners demand tax cuts, gas connections ahead of budget The event was held at the PRI Conference Room in the capital. Sattar described Bangladesh's current trade policy as “a hotchpotch” of outward-looking and inward-looking approaches without clear direction, resulting in export success confined almost entirely to readymade garments, which account for 84 percent of total exports, while non-RMG export diversification has remained largely stagnant. He said the RMG sector effectively operates within a free trade enclave, while most other industries face a complex, multi-layered tariff regime comprising customs duties, regulatory duties, supplementary duties, VAT, advance income tax and other para-tariffs, pushing the nominal protection rate (NPR) to around 27.9 percent in FY26. Presenting historical data, Sattar noted that while average customs duties fell sharply from 70.6 percent in FY92 to around 13-14 percent in recent years, the gains were offset by the steady rise of para-tariffs, from 2.6 percent in FY92 to 13.2 percent in FY26, leaving effective protection largely unchanged over two decades. He described the persistent gap between output tariffs and input tariffs as a “crocodile tariff” structure, with output tariffs consistently running more than double the rate applied to inputs, entrenching protection for domestic producers at the expense of export competitiveness. Data showed that nearly 1,677 tariff lines, representing 99.8 percent of cases, carry supplementary duty rates on imports that exceed those applied domestically, a mechanism the PRI characterises as de facto industrial protection disguised within the revenue framework. Sattar argued that the primary barrier to export diversification is not a lack of competitiveness, but a policy-induced anti-export bias embedded in the tariff structure. PRI research covering 1,377 non-RMG product categories found that 39 percent are highly competitive globally, with an average anti-export bias (AEB) ratio of 1.303,  meaning the policy environment systematically favours domestic sales over exporting. “With all the subsidies and support applied to exports, these are no match to the high protection subsidy through tariffs to import-substitute production,” Sattar said. He added that the 30-40 percent depreciation of the taka between FY2022 and FY2025 further compounded the effective tariff burden, as exchange rate depreciation is economically equivalent to an increase in import duties. On foreign direct investment, Sattar said Bangladesh continues to attract only around 1 percent of GDP in FDI inflows, a fraction of the 4-6 percent of GDP achieved by Vietnam and Thailand, because export-oriented, efficiency-seeking investment gravitates toward open, predictable and trade-neutral regimes, conditions Bangladesh currently fails to meet. Turning to consumer welfare, Sattar said the protection regime effectively functions as a hidden tax on ordinary Bangladeshis. PRI research estimates that consumers pay 50 to 100 percent above world prices for most goods, whether imported or domestically produced, with the total protection cost to consumers estimated at 6.3 percent of GDP in FY20. He cited the IMF's purchasing power parity data to illustrate the price-level problem: while Bangladesh is projected to marginally overtake India in nominal per capita GDP in 2026, India's PPP-adjusted per capita income stands 15 percent higher at $11,789 against Bangladesh's $10,271, a gap the IMF projects will widen to 24 percent by 2031. Sattar invoked economist Mancur Olson's theory of collective action to explain why reform has proved difficult: producer associations lobby effectively for protection, while consumers large, diffuse and poorly organised, bear the costs in silence. “Restrictive trade and import regime restricts consumer choice, raises prices, and undermines consumer welfare,” Sattar said, calling on the government to strike a balance between protection incentives for producers and the mounting costs imposed on consumers.