United News of Bangladesh

Islami Bank Bangladesh PLC (IBB) has demanded the immediate recovery of approximately Tk 10,000 crore stuck with five other Shariah-based banks linked with S Alam Group.  The country’s largest private lender has also sought the central bank’s mediation to recover outstanding funds from the state-owned Janata Bank and S. Alam Group. The issues were raised by Islami Bank Chairman Professor M. Zubaidur Rahman during a high-level meeting with Bangladesh Bank Governor Mostaqur Rahman at the central bank headquarters on Tuesday. The Islami Bank's board members, managing director, and senior officials were present at the meeting. According to meeting sources, the Chairman informed the Governor that a substantial amount of the bank's liquidity—roughly Tk 10,000 crore—is currently held up in five Islamic banks. Furthermore, the bank claimed it is owed nearly Tk 1,000 crore from the central bank in the form of unpaid remittance incentives. During the discussion, the IBB management sought the central bank's assistance in recovering large-scale loans and requested a waiver on provisioning under special conditions. The bank also sought the Governor’s guidance on maintaining business relations with major industrial groups moving forward. Governor Mostaqur Rahman assured the delegation that the issues would be considered with gravity. "The matters will be reviewed, and necessary decisions will be communicated shortly," the Governor reportedly told the meeting. A senior official of Bangladesh Bank noted that the Governor inquired about the current operational hurdles facing Islami Bank and instructed relevant departments to assess the situation and determine the next course of action. The meeting comes in the wake of recent change in the board of Islami Bank . On February 17, the central bank removed board member Md. Abdul Jalil replaced another banker SM Abdul Hamid in his place. Islami Bank fell under the control of the S Alam Group from 2017 until the fall of the Awami League government in August 2024. During this period, allegations surfaced that approximately Tk 1.20 lakh crore was withdrawn from the bank through various names and shadow entities.  Additionally, the irregular recruitment of nearly 10,000 officials reportedly pushed the bank into a deep crisis. Following the formation of the interim government in 2024, the bank's board was restructured, leading to the departure of several top executives from the country. A recent report submitted by the Bangladesh Bank to the Anti-Corruption Commission (ACC) revealed that the S Alam Group took nearly Tk 1.90 lakh crore in loans from eight banks under its direct or indirect control. Of this, the Bangladesh Financial Intelligence Unit (BFIU) found that approximately Tk 93,364 crore was laundered through fraudulent paper companies, with over Tk 1.05 lakh crore originating from Islami Bank alone. This was the second formal meeting between the restructured IBB board and Governor Mostaqur Rahman.  In their previous session, the Governor acknowledged that while the bank was once one of the nation's strongest financial institutions, a significant governance deficit had emerged in recent years.  He (Governor) reiterated the central bank's commitment to providing the necessary support to stabilize the institution.

The Bangladesh Jewellers Association (BAJUS) has once again increased gold prices in the local market, raising the rate by Tk 3,266 per bhori on Wednesday, the first day of April. According to a statement issued in the morning, the price of 22-carat gold has been set at Tk 247,977 per bhori (11.664 grams). BAJUS said the latest adjustment was made due to a rise in the price of pure gold (tejabi gold) in the local market, prompting a revision of overall gold rates. Under the new pricing structure, 21-carat gold will cost Tk 236,721 per bhori, while 18-carat gold has been fixed at Tk 202,895 per bhori. Gold of traditional method has been set at Tk 165,279 per bhori. The association last revised gold prices on March 31, when it increased the rate by Tk 3,266 per bhori, setting the price of 22-carat gold at Tk 244,711. So far in 2026, gold prices have been adjusted 51 times in the domestic market, with rates increased on 30 occasions and reduced 21 times. Despite the hike in gold prices, silver rates remain unchanged. Currently, 22-carat silver is being sold at Tk 5,715 per bhori, while 21-carat silver costs Tk 5,424 per bhori, 18-carat Tk 4,666, and traditional silver Tk 3,499 per bhori. In 2026, silver prices have been adjusted 30 times so far, with 17 increases and 13 decreases.

Bangladesh’s remittance inflows have reached a historic high, recording US $3.62 billion in the first 30 days of March 2026. This surge, fueled by expatriates' increasing transfers ahead of the Eid-ul-Fitr celebrations, has pushed the foreign exchange reserves to a robust $34.05 billion. The March figure marks a significant 10.7 percent growth compared to the $3.27 billion received during the same period in 2025. This record-breaking performance in March 2026 contributes to an exceptional trajectory for the current fiscal year (FY 2025-26). Cumulative remittance from July 2025 to March 28, 2026, has reached $26.07 billion, a staggering 19.8 percent increase over the $21.76 billion recorded during the corresponding period of FY 2024-25. Central bank officials attribute this record-breaking trend to the government's 2.5 percent cash incentive on formal banking channels, which has effectively discouraged the informal "hundi" system. Bolstered by the influx of foreign currency, Bangladesh’s gross foreign exchange reserves rose to $34.05 billion as of March 30, 2026. Under the IMF’s BPM6 manual, the reserves stood at $29.35 billion. This is a slight adjustment from mid-month figures, where gross reserves peaked at $34.22 billion on March 16. The surge was most concentrated in the first half of the month, with expatriates sending home $2.20 billion in just the first 14 days—a 35.7 percent jump compared to the previous year. Industry insiders noted that Non-resident Bangladeshis (NRBs) traditionally ramp up transfers during Ramadan to support family festival expenses, providing a vital seasonal boost to the national economy. Economists suggest that if this momentum continues, total remittance for FY 2025-26 will likely surpass all previous annual records. Such a milestone would further stabilize the exchange rate of the Taka and ease pressure on the country’s balance of payments amidst ongoing global economic volatility.

The Cabinet Committee on Government Purchase (CCGP) on Tuesday approved several key procurement proposals including the import of a large consignment of MOP fertiliser from Russia and a cost variation for the rehabilitation of Kulaura-Shahbazpur railway section. The meeting, chaired by Finance and Planning Minister Amir Khosru Mahmud Chowdhury, also rejected a cost variation proposal for a government housing project in Narayanganj. Five other agendas were also withdrawn at the request of the respective ministries. CCGP clears proposal to import one cargo of LNG from Singapore To strengthen the country’s agricultural sector, the committee approved a proposal from the Ministry of Agriculture to import 35,000 tonnes of MOP fertiliser from Russia. The supplier is JSC "Foreign Economic Corporation (Prodintorg)" and the executing agency is the Bangladesh Agricultural Development Corporation (BADC). The total cost is estimated at Tk 154.89 crore, with each tonne priced at USD 360.53. The committee also approved a variation proposal from the Ministry of Railways for Kulaura-Shahbazpur railway rehabilitation. The project scope covers embankment repair, bridges, station buildings, and track laying. The contractor is Kalindee Rail Nirman, a division of Texmaco Rail & Engineering Ltd. With the approved variation, the total contract value including CD-VAT now stands at Tk 672.52 crore. A proposal from the Ministry of Housing and Public Works for the construction of two 15-storey buildings for government employees in Aliganj, Narayanganj, was rejected. The proposed variation of Tk 14.12 crore would have increased the original contract by 14.837%, raising the total to Tk 109.35 crore. Five agendas were withdrawn from the meeting at the requesting ministries’ initiative. These included the Ministry of Commerce’s proposal to purchase 8,000 tonnes of lentils via local tender, and the Ministry of Science and Technology’s plan to supply and install telecommunication equipment for the Rooppur Nuclear Power Plant. Two procurement packages (WP-02 and WP-04) under the World Bank-funded 'Bangladesh Road Safety Project' were also withdrawn by the Road Transport and Highways Division. Besides, a proposal from the Energy and Mineral Resources Division to procure 1 lakh tonnes of diesel from Maxwell International SPC through direct purchase was removed from the agenda.

Trading on Bangladesh’s two bourses opened on a negative note on Tuesday, with all major indices declining in early hours. During the first hour of trading, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) dropped by 45 points. The Shariah-based DSES index fell by 6 points, while the blue-chip DS30 index lost 18 points. Most listed companies saw price declines, as share prices of 263 companies fell against 79 gainers, while 44 remained unchanged. Turnover on the DSE exceeded Tk 270 crore within the first hour of trading. A similar downward trend was observed on the Chittagong Stock Exchange (CSE), where the overall CASPI index fell by more than 130 points. Out of the traded issues, 71 companies recorded price declines, while 24 advanced and 21 remained unchanged. The CSE recorded a turnover of over Tk 5 crore in the first hour.

Gold prices in Bangladesh rose sharply on Tuesday with the price of 22-carat gold increasing by Tk 3,266 per bhori, according to the Bangladesh Jewellers Association (BAJUS). In a statement issued in the morning, BAJUS said the new price has been set at Tk 244,711 per bhori (11.664 grams) of 22-carat gold, effective immediately. The association attributed the latest hike to a rise in the price of pure gold (tejabi gold) in the local market, prompting an adjustment in overall pricing. Under the revised rates, 21-carat gold will cost Tk 233,572 per bhori, while 18-carat gold has been priced at Tk 200,213 per bhori. The price of gold produced through traditional methods has been set at Tk 163,063 per bhori. Previously, on March 28, BAJUS had increased the price of 22-carat gold by Tk 4,433 per bhori, setting it at Tk 241,445. So far in 2026, gold prices have been adjusted 50 times in the country raised on 29 occasions and reduced 21 times. Alongside gold, silver prices have also been increased. The price of 22-carat silver has gone up by Tk 350 per bhori to Tk 5,715. The new rates for silver stand at Tk 5,424 per bhori for 21-carat, Tk 4,666 for 18-carat, and Tk 3,499 for traditional silver. In 2026, silver prices have been revised 30 times so far, with 17 increases and 13 decreases.

Asian stock markets fell while oil prices surged on Tuesday as the ongoing war involving Iran continued to rattle global markets and drive up energy costs. South Korea’s benchmark Kospi index dropped sharply by 3.82 percent, losing more than 200 points to stand at 5,075.92 around 01:00 GMT. Japan’s Nikkei 225 also declined 2.24 percent in early trading before recovering slightly, though it remained down 0.73 percent, or 377 points, at 51,507.99. China’s FTSE China A50 Index edged lower as well, slipping between five and 10 points, or less than 0.07 percent, to hover around 14,570. Meanwhile, oil prices climbed amid supply concerns linked to the conflict. The US benchmark West Texas Intermediate rose 1.08 percent to $103.99 per barrel, crossing the $100 mark for the first time since the war began. International benchmark Brent Crude jumped 2.23 percent to reach $109.78 per barrel. Rising crude prices have translated into higher fuel costs in the United States. The average retail gasoline price has exceeded $4 per gallon for the first time in more than three years, according to data cited by Reuters from fuel tracking service GasBuddy. Since the US-Israel war involving Iran began on February 28, gasoline prices across the US have surged by about $1.06 per gallon, marking a 36 percent increase. The last time prices reached the $4 threshold was in August 2022, following the outbreak of the Russian invasion of Ukraine. During his 2022 campaign to return to the White House, Donald Trump had pledged to cut energy costs and boost domestic oil and gas production, a promise now facing renewed scrutiny amid the latest price spike. #From Al Jazeera

Highlighting the critical role of Islamic finance in the national economy, Dr. Md. Ezazul Islam, Director General of the Bangladesh Institute of Bank Management (BIBM), emphasized that Shariah governance in Islamic banks is not merely a formal requirement but a foundation for trust, accountability, and long-term sustainability. Speaking as the chair at a seminar titled "Shariah Governance in Islamic Banks of Bangladesh: An Evaluation" on Monday, Dr. Islam noted that while Islamic banking has become a vital part of the country’s financial landscape, there have been noticeable lapses in the required standards of Shariah compliance. The seminar was jointly organized by BIBM and INCEIF University, Malaysia, at the BIBM auditorium in Mirpur. Dr. Islam stressed that the current challenge is ensuring that Shariah frameworks function effectively in practice rather than just existing on paper. He called for comprehensive reforms, including: Formation of independent and skilled Boards of Directors, Integration of Shariah governance with broader corporate governance, Implementation of the "Three Lines of Defence" model for effective compliance and ensuring the independence of internal Shariah audits and introducing external Shariah reviews and fiduciary ratings. "BIBM is committed to advancing this process through research, dialogue, and training," Dr. Islam said, adding that a coordinated effort is needed between regulators, banks, Shariah experts, and top management to foster a culture of actual effectiveness over mere formality. Mosleh Uddin Ahmed, Managing Director of Shahjalal Islami Bank, underscored the need for better loss and risk management. He pointed out that many customers still lack a clear understanding of Islamic banking principles, necessitating more transparent communication regarding its processes and benefits. Abdul Awal Sarker, former Executive Director of Bangladesh Bank and Director of Janata Bank, raised concerns regarding information asymmetry. He alleged that information is often concealed during the investment (loan) process, leading to a high rate of defaults. "Ethics and personal integrity are the backbones of Islamic banking. If those involved are not honest, Shariah compliance will inevitably falter," Sarker remarked. He proposed the appointment of "Resident Shariah Scholars" in every Islamic bank to ensure daily oversight and called for stricter monitoring by the central bank. BIBM gets new director general in Dr. Ezazul Islam Nabil Ahmed, Executive Director of the Financial Reporting Council (FRC), identified the poor quality of internal audit reports in several Shariah-based banks as a major institutional weakness. He emphasized that standardized and regular auditing is essential for maintaining transparency and accountability. The seminar also featured insights from Dr. Said Bouheraoua, Director of the ISRA Institute, Malaysia; Muhammad Anisur Rahman, Director of the Islamic Banking Regulations and Policy Department at Bangladesh Bank; and Dr. Md. Mahabbat Hossain, Associate Professor at BIBM, who presented the keynote paper.  

Prime Minister’s Adviser on Finance and Planning Prof Rashed Al Mahmud Titumir on Monday said the government aims to ensure that investment translates into production, production into employment, and employment into a stronger tax base capable of financing public goods. “We would like to see improvement in terms of Japanese average investment per country. If you really look at, there is a scope for improvement in case of Bangladesh,” he said, noting that official development assistance (ODA) has increasingly become intertwined with geopolitics. The economist said they have seen evolving strategy around ODA. “Our government wants to see a change in the model.  That's where Japan can play an active role,” he said, adding that they want to see that Japan is moving from ODA. Govt to tackle crisis by boosting revenue, not borrowing: Adviser Titumir The Adviser made the remarks while speaking at a commemorative event for Economic Partnership Agreement (EPA) with Bangladesh. Executive Chairman of the Bangladesh Investment Development Authority (BIDA) Ashik Chowdhury, Japanese Ambassador to Bangladesh Saida Shinichi, Head of the Economic Section at the Embassy of Japan in Bangladesh Yutaro Mochida, Deputy Director-General (Ambassador), the Ministry of Foreign Affairs of Japan Izuru Kobayashi (online) also spoke at the event. The event was hosted by the Embassy of Japan in Bangladesh and Japan External Trade Organization Dhaka Office (JETRO Dhaka) while it was supported by Japanese Commerce and Industry Association in Dhaka (JCIAD/Shoo-Koo-Kai) and Japan Bangladesh Chamber of Commerce & Industry (JBCCI). Prof Titumir said they need collaboration and cooperation from the private sector joint venture companies and the government officials. “I am expecting that in the future summit meeting between the Japanese Prime Minister and the Prime Minister of Bangladesh, we would see an epoch-making doable but future oriented steps,” he said.  The Adviser said they have seen Japan helping South Korea, Singapore, China and that collaboration is unique. “That's what we really want to have beside the official development assistance.” He said they would like to increase the trade between the two countries but they would really like to see that Japan is investing in manufacturing. The Adviser said everything has become geo-economics and geopolitics and there are discussions and there are narratives and Japan could lead Bangladesh in that area where they can see that risk are shared. Ashik Chowdhury said they feel very confident that the implementation of the Economic Partnership Agreement (EPA) between Bangladesh and Japan will still become a benchmark for the country. “At the same time, now we will be able to negotiate multiple EPAs in the next three to five years. But for the Japanese investors, I hope that the EPA really shows our intent that we are open to business and we really believe in the Japanese investment story,” he said. Ashik said they really need to move away from the aid story to investment story. “We've always been talking about the aid story but now it's about investment and we generally want to show our intent that we are open to business to our Japanese friends.” Japanese Ambassador Saida appreciated the new government’s ‘well-conceived plan’ which, in his interpretation, consists of a reconciliation to break the old time cycle, restoration of law and order, and economic growth through enhanced investment. “All these will positively affect investors' minds and the prerequisite of accelerating economic growth through more FDIs,” he said, reiterating Japan’s ‘true appreciation’ for the peaceful elections which Bangladesh has achieved February this year and new administration's well-conceived plan. The Ambassador said Bangladesh and Japan have shared a long-standing friendship since your independence. “As your faithful and dedicated development partner, Japan has consistently supported Bangladesh as a nation irrespective of its ruling party.” He said this cooperation has evolved into today's strategic partnership founded on trust and shared values. The Ambassador recalled that before signing the EPA, some critics were seen in the Bangladesh press. “I thought in my mind at the time that they might be looking at as long as three years, maybe a little bit short cycle.”

Foreign loan disbursements and repayments have remained almost equal during the first eight months of the current 2025-26 fiscal year, highlighting mounting pressure on external debt servicing, according to latest data from the Economic Relations Division (ERD). Between July and February, the country received foreign loans and grants worth about US$3.05 billion, while repaying nearly US$2.9 billion to various lenders, the ERD reported in its updated statement released on Monday. Of the repayments, around US$1.95 billion was paid as principal and US$950 million as interest, the report said. Officials noted that the rising repayment burden reflects the growing maturity of previously received loans, as Bangladesh continues to service larger amounts of external debt. In the last fiscal year, the country repaid more than US$4 billion in foreign loans. Meanwhile, commitments for foreign assistance during the July-February period stood at around US$2.43 billion, slightly higher than the US$2.35 billion recorded in the same period of the previous fiscal year. Disbursements came from multiple development partners, with Russia emerging as the largest provider, disbursing about US$755.1 million. The World Bank followed with US$636 million, while the Asian Development Bank (ADB) provided US$566.1 million. China and India each disbursed around US$250 million and US$257.7 million respectively, while Japan contributed nearly US$190 million during the period.