United News of Bangladesh

In a bid to ensure transparency, accountability, and to prevent potential conflicts of interest, Bangladesh Bank (BB) has prohibited its officials and employees from participating in training programmes, seminars, and workshops funded by banks and other financial institutions. The central bank issued an office order on Wednesday, detailing strict guidelines regarding local and international events sponsored by the very entities it is tasked with regulating. The circular, issued by the Human Resources Department-2 (Training and Development Wing), outlines the following mandates. Bangladesh Bank slashes penalty interest rate to 0.5pc to boost investment No Funded Participation BB officials and employees are barred from participating as trainees or trainers in any training or workshop, domestic or foreign, funded by government or private banks, financial institutions, or other organisations. Service Provider Restrictions Personnel cannot participate in any foreign training, seminar, or workshop funded by any organisation that receives services from or supplies goods to Bangladesh Bank. Strict No-Honorarium Policy While officials may participate as trainers or speakers in domestic seminars or discussion meetings organised by banks or financial institutions—provided they have prior approval from Human Resources Department-2—they are strictly forbidden from accepting any honorarium from the organising agency. Conflict of Interest Generally, central bank staff are directed to refrain from attending any event where the acceptance of an honorarium could create a conflict of interest with the activities of Bangladesh Bank. The directive stated that these decisions were taken to maintain the integrity of the financial sector's regulatory framework. The order has been issued with the approval of the appropriate authority and takes effect immediately.

The Board of Directors of Bangladesh Bank (BB) has given primary approval to the liquidation of five Non-Bank Financial Institutions (NBFIs) that are struggling with massive loan defaults and an inability to repay depositors. The liquidation process for these institutions is expected to commence in July, according to sources privy to the decision made during a board meeting chaired by Governor Mostaqur Rahman on Tuesday. The five institutions slated for liquidation are FAS Finance, Fareast Finance, Aviva Finance, People's Leasing and Financial Services, and International Leasing and Financial Services. According to the central bank data, the non-performing loan (NPL) ratios of these institutions have reached critical levels, ranging from 93 percent to nearly 100 percent. Due to their prolonged failure to recover loans, they have been unable to honour withdrawal requests from depositors. The central bank plans to shut down these entities under the Bank Resolution Act 2026. As part of the process, it will appoint one of its directors as an administrator for each institution, assisted by two additional officials. These institutions will eventually be declared defunct. Central bank officials estimate that approximately Tk 5,000 crore will be required to return funds to individual depositors. The central bank reportedly moved forward with the liquidation decision after receiving positive assurances from the government regarding fund allocation in the upcoming national budget. The Bank Resolution Act provides a framework for the merger, restructuring, or closure of financially distressed institutions and dictates how assets should be liquidated to pay off creditors. The decision follows a lengthy review process. In May last year, the central bank issued show-cause notices to 20 NBFIs for high NPLs and failure to return deposits. Later, nine institutions with unsatisfactory recovery plans were earmarked for closure. That list was trimmed to six in January and finally to five, with Premier Leasing being excluded from the current final list. The financial health of these entities, as of December last, paints a dire picture with FAS Finance having 99.99 percent NPL ratio, International Leasing 99.44 percent, Fareast Finance 98.50 percent, People's Leasing 95 percent and Aviva Finance 93.93 percent NPL ratio. Industry insiders attribute this collapse to years of systemic irregularities, corruption, and massive loan scams. Notably, disgraced businessman PK Halder is accused of embezzling at least Tk 3,500 crore from four institutions: People's Leasing, International Leasing, FAS Finance, and BIFC.  

Bangladesh Bank has reduced the maximum penalty interest rate on overdue loans to 0.5 percent, aiming to boost investment and productivity amid the prevailing global economic challenges. According to a circular issued by the Banking Regulation and Policy Department (BRPD) on Wednesday, the central bank lowered the penalty interest cap from 1.5 percent to 0.5 percent. The directive, signed by BRPD Director Gazi Md Mahfuzul Islam, revises earlier guidelines issued in May 2024 on market-based interest rate determination. Under the revised rules, banks may now charge a maximum of 0.5 percent penalty interest on overdue loans or instalments. For continuous or demand loans, the penalty will apply to the entire outstanding amount, while for term loans, it will apply only to the overdue instalment. The central bank said the decision was taken in view of the “prevailing global economic situation” and the need to “increase investment and productivity”. The new instruction takes immediate effect, the circular said. It also clarified that all other provisions of BRPD Circular No. 10/2024 will remain unchanged, including the validity of actions already taken under the previous framework.

Health Minister Sardar Md. Sakhawat Husain on Wednesday highly praised Nevian’s success in exporting medicines to Canada, noting that the pharmaceutical industry is one of the most important sectors for diversifying Bangladesh’s export basket. “Nevian’s initiative, in partnership with Switzerland-based Sandoz, can serve as a role model for achieving rapid growth in this sector,” he said joining an event virtually. The event was held at Nevian’s manufacturing plant in Tongi attended by senior government officials, representatives from regulatory authorities, and local public representatives. Gazipur-2 MP M Manjurul Karim Rony and Gazipur City Corporation Administrator Shawkat Hossain Sarkar, among others, attended the event. Nevian Life Science PLC (formerly Novartis Bangladesh Limited) celebrated a milestone in Bangladesh’s pharmaceutical export sector by commencing medicine exports to Canada. The export initiative has begun under a contract manufacturing arrangement with Sandoz AG, world’s no. 1 generic pharmaceutical company headquartered in Switzerland. In the first phase, Sandoz Canada Inc. is importing multiple pharmaceutical products manufactured at Nevian’s Tongi plant against purchase orders from Sandoz AG, Switzerland. Under the same agreement, several countries across Europe, North America, and South America under the Sandoz network are expected to be added as future export destinations. This marks the first time Bangladesh has exported pharmaceutical products to highly regulated North American markets, including Canada, on behalf of a leading multinational pharmaceutical company, said the company. Nevian’s Managing Director Musawath Shams Zahedee said when we embarked on their journey as Nevian, they pledged to uphold the quality standards of Novartis in Bangladesh. “Today, through exporting medicines to a country like Canada on behalf of a multinational company, that commitment has been fulfilled. Nevian is now the first company in Bangladesh to engage in multi-country partnership-based contract manufacturing and exports.” Chairman of Radiant Pharmaceuticals Md Nasser Shahrear Zahedee said that the foundation of Bangladesh’s pharmaceutical industry was established through the historic Pharmacy Ordinance enacted during the presidency of Ziaur Rahman in 1976, which paved the way for Bangladesh’s self-sufficiency in medicines. He said the policies and plans introduced by former Prime Minister Khaleda Zia in 1994 for the development of the pharmaceutical sector would now be reinstated and modernised by the current nationalist government to further advance public health protection and the growth of the pharmaceutical industry.

While Bangladesh’s agriculture and manufacturing sectors showed signs of expansion in April, other key segments of the economy, particularly construction, continued to contract, leaving businesses in sectors like steel struggling to stay afloat, experts and economist said at a discussion on the country's Purchasing Managers' Index (PMI) data on Wednesday. The event, jointly organised by UK International Development, Policy Exchange Bangladesh and the Metropolitan Chamber of Commerce and Industry (MCCI), was held at the MCCI's Gulshan office. Hasnat Alam, Senior Manager at Policy Exchange Bangladesh, presented findings from the latest PMI survey at the programme. Responding to questions from journalists, he explained that the PMI is calculated by surveying senior executives or owners of firms across various sectors, asking seven to eight structured questions on trends in employment, imports, exports, output and new orders. Aggregating the responses across firms and sectors, Hasnat said, yields a composite picture of the economy's overall direction – expanding, contracting or stagnating. The PMI findings were broadly consistent with official data presented in a concurrent MCCI quarterly economic review. The review showed that the industry sector registered a sharp growth deceleration, falling to 1.27 percent in Q2 of FY26 from 6.82 percent in the previous quarter, while the manufacturing sub-sector slowed even more steeply, to 1.13 percent from 6.09 percent. Construction growth collapsed from 9.35 percent in Q1 to just 1.56 percent in Q2, with the sector's difficulties creating knock-on effects for building materials industries. Agriculture, by contrast, outperformed expectations. The sector grew 3.68 percent in Q2 of FY26, up from 2.11 percent in Q1, buoyed by favourable weather and timely government support for inputs and financing. The sector accounts for approximately 44 percent of the country's labour force. Domestic food grain production targets of 45.39 million metric tons were set for FY26, with Boro rice, accounting for about 52 percent of total rice output, expected to meet its target. The services sector also registered a modest slowdown, growing 4.45 percent in Q2 compared to 4.51 percent in the previous quarter, with its share of GDP declining 1.47 percentage points to 50.57 percent. Meanwhile, overseas employment recorded solid growth, with manpower exports rising 15.25 percent to 7,64,149 persons during July-February period of FY26 compared to 6,63,021 persons a year earlier. The government is currently pursuing diplomatic efforts to reopen labour markets in Malaysia, Oman, the United Arab Emirates and Bahrain, while separately working towards placing 1,00,000 Bangladeshi workers in Japan over the next five years under a bilateral agreement. The MCCI cautioned that the overall recovery, while showing some gradual improvement, remains exposed to both domestic risks, including political uncertainty and weak private investment, and external headwinds from the Middle East conflict and global trade disruptions.

Bangladesh's key financial regulators convened on Wednesday at the Dhaka Stock Exchange PLC (DSE) to bolster the capital market's defences against money laundering and terrorist financing, underscoring growing concerns over illicit financial flows threatening investor confidence. The workshop titled “Stable Capital Market: Progress in AML/CFT Compliance and Risk Management” was jointly organised by the Bangladesh Financial Intelligence Unit (BFIU), the Bangladesh Securities and Exchange Commission (BSEC) and the DSE. Chaired by DSE General Manager and acting Chief Risk Officer Mohammad Shafiqul Islam Bhuiyan, the event brought together senior officials from all three institutions to assess implementation of anti-money laundering and counter-terrorist financing frameworks across the securities sector. In his welcome address, Shafiqul Islam warned that the capital market now faces layered risks, from money laundering and terror financing to cyber-enabled financial crimes, insider trading and market manipulation, all of which erode investor trust and undermine sound governance of the financial system. BSEC Additional Director Md Ohidul Islam, speaking as a special guest, stressed that effective implementation of the Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) framework is indispensable for building a transparent, resilient and trust-based capital market. He cautioned that illicit financial flows and laundering risks directly damage market integrity and pose a systemic threat to financial sector stability. BFIU Director Syed Kamrul Islam, the chief guest, called for clearer and more actionable AML/CFT guidance for capital market participants. A transparent, accountable and well-governed capital market, he said, plays a decisive role in attracting both domestic and foreign investors. AML/CFT guidelines enforce strict protocols to prevent money laundering and terrorist financing, primarily focusing on risk-based approaches (RBA), Customer Due Diligence (CDD), and transaction monitoring. Key requirements include identifying beneficial owners, conducting regular audits, reporting suspicious activities (STR/SAR), and complying with international standards, such as those from the Financial Action Task Force (FATF). The workshop comes as Bangladesh's capital market regulators face intensifying pressure to align with international financial integrity standards ahead of upcoming FATF-related assessments.  

The Bangladesh Securities and Exchange Commission (BSEC) has fined top officials of Fortune Shoes Limited over unpaid cash dividends and listing fees, while also taking several policy decisions at its 1,013th commission meeting. The meeting was held on Tuesday at the commission’s headquarters with BSEC Chairman Khondoker Rashed Maqsood in the chair, according to a press release issued on Wednesday. The commission said Fortune Shoes had declared a 10 percent cash dividend and a 5 percent bonus dividend for the financial year ended June 30, 2022. However, the listed company failed to disburse Tk 3.98 crore out of its total cash dividend payout of Tk 16.25 crore. The company also failed to pay Tk 18.29 lakh in listing fees to the Dhaka Stock Exchange for the previous three years until July 31, 2023. The commission directed the company to clear the unpaid cash dividend and listing fees within 30 days of the order. It also decided to impose financial penalties on responsible individuals for violating securities laws and harming investors’ interests. The fines must be deposited with the commission within seven days. Under the decision, Fortune Shoes Chairman Md Mizanur Rahman was fined Tk 5 crore. Directors Md Amanur Rahman, Robiul Islam and former director Md Khosrul Islam were each fined Tk 50 lakh. Managing Director Roksana Rahman was also fined Tk 50 lakh. Chief Financial Officer Jamil Ahmed Chowdhury was fined Tk 10 lakh, while former Company Secretary Riaz Uddin Bhuiya was fined Tk 5 lakh. In another decision, BSEC said if any listed company’s board is restructured by a primary regulatory authority and the reconstituted board jointly holds less than 30 percent shares, restrictions on capital raising through rights shares, bonus shares or similar measures will no longer apply. The commission also decided that listed banks under the ‘A’ category on stock exchanges will be allowed to maintain dividend accounts with their own banks. Besides, BSEC decided to continue organising the “BSEC Capital Market Journalism Excellence Awards and Fellowship 2026”, following last year’s initiative aimed at encouraging transparent, research-based financial journalism. The commission said the fellowship would help journalists enhance their knowledge of global financial markets, strengthen analytical skills and promote ethical reporting standards. Last year, BSEC introduced the programme for the first time and awarded nine journalists in print, electronic and online media categories.    

Turkish business leaders and Bangladesh's leading trade body DCCI explored new avenues for bilateral investment Wednesday as a seven-member delegation from Turkey met office bearers of the Dhaka Chamber of Commerce & Industry (DCCI) in the capital. The delegation was led by Burak Basegmezlar, Vice President of the Turkish Electro Technology Exporters' Association (TET), and attended by Turkey’s Ambassador to Bangladesh, Ramis Şen. Welcoming the visitors, DCCI President Taskeen Ahmed said Bangladesh and Turkey share longstanding friendly ties and expressed hope that such high-level business exchanges would give fresh momentum to bilateral trade. He disclosed that total bilateral trade between the two countries in FY 2024–25 stood at approximately USD 1.05 billion, with Bangladesh's imports from Turkey amounting to USD 416.76 million and exports reaching USD 634.53 million. “Turkish entrepreneurs have already invested USD 74.05 million across various sectors in Bangladesh.” Taskeen invited Turkish investors to explore both joint ventures and sole investments in sectors including readymade garments, leather and footwear, jute goods, agro-processed products, pharmaceuticals, light engineering, ICT services and software, home textiles, and consumer goods. Basegmezlar said Bangladesh presents strong demand for electronic equipment, home appliances and generators, and noted that Turkish investors are actively interested in entering these segments through both independent and collaborative arrangements. He announced that a Turkish business delegation from the electronics and electrical equipment sector is planning to visit Bangladesh in November, during which B2B sessions between private sector representatives of both countries would be held to unlock investment potential and deepen trade ties. Ambassador Şen underscored the considerable scope for expanding bilateral trade and said stronger business-to-business linkages are key to realising that potential. He noted that DCCI is well-placed to serve as an effective bridge between the private sectors of the two countries. DCCI Senior Vice President Razeev H Chowdhury and Vice President Md. Salem Sulaiman, among others, were present at the meeting.

Asian stock markets were mixed on Wednesday as excitement over artificial intelligence-related shares eased and concerns over the ongoing conflict involving Iran continued to weigh on investor sentiment. Nikkei 225 in Japan rose 0.8 percent in afternoon trading, while Kospi in South Korea jumped 2.7 percent, recovering from earlier losses linked to uncertainty over possible government measures involving AI company profits. In Australia, the S&P/ASX 200 fell 0.5 percent. Hang Seng Index in Hong Kong was little changed, while Shanghai Composite Index in China gained 0.6 percent. Market analysts said strong corporate earnings and continued interest in AI stocks are still supporting markets, but rising oil prices and geopolitical tensions are making investors more cautious. Oil prices slipped in early trading but remained far higher than before the conflict in the Middle East intensified. Analysts said the disruption to shipping through the Strait of Hormuz has added to concerns about global energy supplies. On Wall Street overnight, the S&P 500 fell 0.2 percent from its record high. The Dow Jones Industrial Average edged up 0.1 percent, while the Nasdaq Composite dropped 0.7 percent. Technology and chip stocks led the decline. Intel fell 6.8 percent, while Micron Technology lost 3.6 percent. In the bond market, U.S. Treasury yields rose, reflecting expectations that the Federal Reserve will keep interest rates unchanged to control inflation. In currency trading, the U.S. dollar strengthened slightly against the Japanese yen, while the euro edged lower against the dollar. Investors are now watching developments in the Middle East and signals from central banks for clues about the direction of global markets.

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.