United News of Bangladesh

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the United Nations Office for the Coordination of Humanitarian Affairs (UN OCHA) held a high-level meeting on Sunday at the UN House in Dhaka to explore ways to deepen private sector engagement in the country's humanitarian and disaster response architecture. The meeting was led on the UN side by Lisa Doughten, Director of the Financing and Outreach Division at UN OCHA, who underscored that Bangladesh and Myanmar remain among the organisation's priority countries in Asia. Discussions centred on how the private sector can be more strategically integrated into established global humanitarian frameworks, including the Central Emergency Response Fund (CERF), Country-Based Pooled Funds, and the Humanitarian Response Plan (HRP). FBCCI's recent admission as the 22nd member of the Connecting Business Initiative (CBI), a joint platform run by UN OCHA and UNDP drew particular attention, with both sides acknowledging it as a meaningful step toward institutionalising private sector participation across all phases of disaster management. The two sides identified concrete areas for structured cooperation, including joint training on humanitarian coordination mechanisms such as the Cluster System and Humanitarian Country Team processes, pilot initiatives for private sector-led emergency coordination, covering rapid response, resource mobilisation and business continuity and the integration of the FBCCI Safety Council into national and global coordination platforms. Gender-sensitive and inclusive humanitarian action also featured prominently in the discussions, with emphasis on the private sector's role in supporting women-led enterprise recovery, bolstering the MSME sector and ensuring equitable access to relief supplies. Both parties agreed to explore the formation of a sector-specific private sector humanitarian coordination platform under the FBCCI Safety Council, which would facilitate early coordination and joint planning in crisis situations. Concluding the meeting, both sides committed to building a scalable private sector–humanitarian partnership model in Bangladesh, one they agreed could serve as a replicable example at the global level. Among those present from the private sector were MCCI President Kamran T. Rahman, PRAN-RFL Group Chairman Ahsan Khan Chowdhury, FBCCI Secretary General Md Alamgir, and FBCCI Safety Council Adviser Brigadier General (retd) Abu Naeem Md Shahidullah, alongside other senior FBCCI officials.

The Foreign Investors’ Chamber of Commerce and Industry (FICCI) has urged the government to implement stable and predictable fiscal policies to strengthen Bangladesh’s investment climate and foster sustainable economic growth. The call was made during a high-level luncheon meeting titled “Conducive Fiscal Policy for a Better Investment Climate,” held at a city hotel on Sunday. The event brought together policymakers, economists, business leaders, and members of the diplomatic community. In his keynote address, Dr. M. Masrur Reaz, Founder and Chairman of Policy Exchange Bangladesh, identified tax policy and administration as primary concerns for investors. He noted that high corporate tax rates, lengthy compliance processes, policy unpredictability, and frequent mid-year changes continue to create significant uncertainty in the business environment. A panel discussion, moderated by PwC Country Managing Partner Shams Zaman, featured experts from the World Bank, Asian Development Bank (ADB), Centre for Policy Dialogue (CPD), and Business Initiative Leading Development (BUILD). The panelists emphasized that while Bangladesh offers immense potential, addressing administrative fragmentation and simplifying dispute resolution are essential to remaining competitive globally. They stressed that a transparent and automated tax system would not only increase government revenue but also reduce the cost of doing business. FICCI Executive Director TIM Nurul Kabir reiterated the chamber's commitment to working with the government to create an investment-friendly environment. He noted that FICCI’s 210 member companies currently contribute around 30 percent of the government's internal revenue and represent more than 90 percent of the inward Foreign Direct Investment (FDI) in Bangladesh. The chamber concluded by highlighting that a predictable fiscal outlook is the most critical factor in attracting long-term foreign capital and ensuring the country's economic stability.    

The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has described the current period as the most critical in the history of the country's apparel industry, citing a sustained negative growth trend in exports for the first time. In its formal budget proposals for the 2026-27 fiscal, submitted to the National Board of Revenue (NBR) today (Sunday), the association revealed that knitwear export earnings plummeted by 6.42 percent in March 2026 compared to the previous year. BKMEA President Mohammad Hatem said this while placing a budget proposal to the National Board of Revenue (NBR) on behalf of the association, in a formal meeting with the revenue board, held at NBR Building in Agargaon. NBR Chairman Abdur Rahman Khan chaired the event. NBR members Azizur Rahman, Mobinul Kabir and Barrister Mutasim Billah Faruki were present at the meeting. Fazle Shamim Ehsan, Executive President, BKMEA was also present. BKMEA President Mohammad Hatem noted that since August 2025, export earnings have remained on a consistent downward trajectory due to global geopolitical instability, rising shipping risks, and domestic structural challenges. The proposal highlights a sharp rise in "fixed costs" for factories as they are forced to operate well below their production capacity. The association pointed out that while the cost of electricity, gas, and labor has increased significantly, the "unit value" or price offered by international buyers has actually decreased. Hatem also proposed a duty free import facilities of solar panels and solar energy storage system for industrial smooth production to face loadshedding. To prevent further factory closures and maintain international competitiveness, BKMEA placed several strategic demands: i) The association urged the government to reduce the source tax on exports from 1 percent to 0.5 percent and treat it as the final tax liability for at least the next five years. ii) BKMEA proposed a uniform 10% corporate tax rate for all export-oriented industries to ensure a level playing field. iii) A request was made to exempt the 10 percent income tax currently imposed on cash incentives provided by the government. iv) The trade body sought a total waiver of the 1 percent import duty on capital machinery and spare parts, arguing that modernization is essential for survival. v) To promote a "circular economy," the BKMEA proposed withdrawing all VAT and Advance Tax (AT) on the collection and supply of textile waste (jhut) and recycled fibers. The BKMEA emphasized that these proposals are not merely requests for "tax breaks" but are strategic necessities to keep the industry afloat. The association warned that without timely policy intervention, the sector's ability to achieve national export targets and maintain employment for millions of workers would be severely compromised. "This is the first time in our history we are seeing such a prolonged negative growth trend," the BKMEA President Mohammad Hatem stated in the proposal. "The timely decisions of the NBR will determine whether this industry can overcome the current crisis and continue to contribute to the national economy," he added.  

A new policy brief released this week by the Dacca Institute of Research and Analytics (DAIRA) has warned that the US-Iran conflict has delivered a severe commodity shock to Bangladesh's already-fragile economy, calling for urgent fiscal and monetary course correction ahead of the FY2026-27 budget. The brief titled ‘Macroeconomic Impact of the US-Iran Conflict on Bangladesh: Monetary Assessment and FY2026-27 Budget Recommendations’ lays out a sobering picture: Brent crude surged 45.8 percent to $103.69 per barrel following the March 2026 conflict outbreak, urea fertilizer prices spiked 74.7 percent to $725.63 per metric tonne, and foreign exchange reserves bled $993 million in a single month. Bangladesh entered the shock from a position of weakness. Quarterly GDP growth had already slipped to a decade-low of 3.03 percent, consumer price inflation stood at 8.71 percent, and Bangladesh Bank's repo rate was held at 10.00 percent, leaving a real interest rate of barely 1.29 percent. Triple Constraint The brief describes Bangladesh as trapped in a “triple constraint”, simultaneously defending reserves, containing inflation, and protecting the vulnerable with little fiscal room to manoeuvre. Bangladesh Bank, the report argues, faces a structural dilemma. If oil prices remain above $100 per barrel, inflation could spiral to between 12 and 18 percent through fuel cost pass-through via the Bangladesh Petroleum Corporation, elevated liquefied natural gas costs raising power tariffs, and a fertilizer-to-food price feedback loop. “Yet raising interest rates further would choke private credit growth already hovering at 0.2–0.3 percent month-on-month, deepening the GDP slowdown.” FX reserves, which had recovered from $24.8 billion in July 2024 to $35.1 billion by February 2026, are now under renewed pressure. At the March burn rate of $993 million per month, the brief warns reserves could reach $28–30 billion within six to nine months, approaching the IMF's critical three-month import cover threshold of $26 billion. The report estimates that the conflict shock will impose additional fiscal pressure of BDT 83,000 to 130,000 crore on the FY2026-27 budget, roughly 3.7 percent of the FY2025-26 budget driven by BPC petroleum subsidy top-ups, Bangladesh Power Development Board power sector losses, swollen fertilizer subsidies and expanded food safety net requirements. This comes as the FY2025-26 budget had already trimmed the subsidy, PPE and liabilities line by 18.4 percent to BDT 82,420 crore, a reduction the brief describes as “critically optimistic given the commodity shock.” In the near term, Daira recommends holding the repo rate at 10 percent with a pre-announced trigger of 10.50 percent should CPI breach 12 percent, defending a $30 billion FX floor through targeted intervention, fast-tracking IMF Extended Credit Facility tranche drawdowns, and capping the Annual Development Programme at 90 percent while ring-fencing energy, agriculture and social safety net allocations. The brief further urges that fertilizer and fuel support be delivered exclusively through the Farmer's Card Direct Benefit Transfer registry, restricting subsidised urea to smallholders farming under 2.5 acres. Over the longer term, the report calls for allocating BDT 8,000–12,000 crore annually to grid-scale solar and wind power purchase agreements, building a 45-day strategic petroleum and LNG reserve funded by a BDT 0.50 per litre surcharge, and restructuring the energy subsidy architecture entirely toward direct transfers. Three critical risk signals were flagged for policymakers: FX reserves falling below $30 billion, CPI exceeding 12 percent year-on-year, and the exchange rate against the dollar breaching Tk 125, each demanding immediate policy escalation. “The FY2026-27 budget must prioritise fiscal discipline over development ambition,” the report concludes. “Monetary policy must hold its credibility even at a growth cost, and energy subsidy architecture must transition from universal to targeted before the next external shock arrives.”  

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has submitted a comprehensive set of proposals for the upcoming 2026-27 national budget, warning that the country’s top export-earning sector is facing an "unprecedented challenge" due to global and domestic factors. A BGMEA delegation, led by its President Mahmud Hasan Khan, submitted the proposals during a meeting with the National Board of Revenue (NBR) held at NBR Building in Agargaon on Sunday. NBR Chairman Abdur Rahman Khan chaired the event. NBR members Azizur Rahman, Mobinul Kabir and Barrister Mutasim Billah Faruki were present at the meeting. BGMEA Vice President Md Shehab Udduza Chowdhury was also present. According to the BGMEA, total apparel export earnings declined by 3.73 percent during the July-February period of the current fiscal year FY2025-26 compared to the same period last year. The association highlighted that nearly 400 garment factories have shut down over the last three years, with many others remaining financially vulnerable. Rising Costs and Declining Investment The industry is grappling with a sharp rise in the cost of doing business. The BGMEA said bank loan interest rates have reached 12-15 percent, gas prices surged by 286 percent between 2017 and 2023, while electricity prices rose by 33 percent over the last five years. It said minimum wages increased by 56 percent in 2024, and the annual increment was raised from 5 percent to 9 percent in December 2024. Chattogram Port tariffs were increased by 41 percent on October 15, 2025. These factors, combined with a 60 percent reduction in export incentives since July 2023, have caused investment in the sector to stagnate, the trade body said. It said capital machinery imports for the textile and garment sectors fell by 37.87 percent and 12.44 percent, respectively, during the first seven months of the current fiscal year. Key Budgetary Demands To sustain competitiveness, the BGMEA has proposed several tax and customs reforms for the 2026-27 fiscal year, including lowering the source tax on garment exports from 1.0 percent to 0.65 percent and maintaining it for the next five years, exempting the 10 percent income tax on cash assistance provided against exports, implementing a 1 percent concessional duty on the import of solar PV system equipment, such as solar panels, inverters, and lithium-ion batteries, to encourage renewable energy use, and resolving HS Code complexities by allowing the import of raw materials listed in the Utilisation Declaration (UD) without repetitive code-specific amendments to bond licenses. The BGMEA emphasised that the RMG sector contributes approximately 83 percent of the nation's total export earnings and is the largest provider of employment. It urged the government to implement these policy supports to ensure the industry's survival and achieve national export targets.

DHS Motors Limited, the official distributor of GAC Motor vehicles in Bangladesh, has officially launched the electric vehicle (EV) brand AION at the 19th Dhaka Motor Show. The AION brand is ranked among the top three in sales in the highly competitive EV markets of Thailand and China. It has also been ranked number one in China’s vehicle quality ratings for three consecutive years. The showcase featured two new EV models — AION Y and AION V. The models are known for their advanced features, premium comfort, spacious interiors and strong driving range. The AION Y offers a range of 430km per charge, while the AION V provides up to 485km per charge, drawing strong interest from visitors at the exhibition. A special introductory offer was announced during the motor show. The AION Y is priced at Tk 50 lakh, while the AION V is available at Tk 62 lakh. DHS said the introduction of AION reflects its commitment to advancing the electrification of Bangladesh’s automobile industry and supporting environmental sustainability. Alongside AION, other GAC models — EMKOO, EMZOOM and E9 — were also displayed at the event. The ultra-luxury MPV GAC E9, launched at last year’s motor show, has attracted significant attention for its comfort and premium features. The EMKOO and EMZOOM crossover SUVs have also gained popularity among younger customers due to their design, features and performance. Special offer prices were also announced for these models, with EMZOOM priced at Tk 40 lakh, EMKOO at Tk 45 lakh, and E9 at Tk 1.16 crore.

The country’s first “Made in Bangladesh” electric vehicle (EV) has been unveiled by Bangladesh Auto Industries Limited (BAIL), at an auto show in Dhaka. At the exhibition, BAIL introduced three indigenous EV brands: MEV (four-wheel passenger and cargo vehicles), Glyder (motorbikes) and Otomax (three-wheelers). Multiple prototype models of each brand were displayed. The company said it aims to offer affordable, environment-friendly, internationally standard locally manufactured EVs with a five-year warranty. It also claimed that fuel and maintenance costs for consumers could be reduced by up to 80 percent through its EVs. BAIL further stated that it will provide dedicated after-sales service and spare parts support to ensure a strong user experience. Product delivery is expected within three months, with pre-booking to start soon. The company also expressed expectations that the upcoming national budget for 2026–27 would have a positive impact on locally manufactured vehicle pricing. BAIL Managing Director Mir Masud Kabir said customer support and reliability are central to the company’s strategy. “For us, the most important thing is providing customer support, and we will do our utmost to ensure the highest level of service and reliability,” he said. “We are trying to offer customers good-quality products at a very affordable price. We are preparing to play a significant role in developing the EV ecosystem nationwide,” he added. The exhibition, organised by CEMS-Global USA, opened on Thursday and concluded at 7pm on Saturday at the International Convention City Bashundhara, featuring more than 70 companies from over 10 countries and around 200 booths.

Bangladesh Bank has clarified that any individual or group facing allegations of money laundering abroad will be barred from returning to the board of directors of any bank. Arif Hossain Khan, Executive Director and Spokesperson of the central bank, gave this clarification on Thursday to address public confusion regarding certain provisions of a recent ordinance related to banking sector reforms. The clarification follows concerns raised in the media and among the public about whether controversial figures previously accused of financial irregularities, loan scams, and money laundering could be rehabilitated into the banking sector. “The information presented in some media outlets regarding the recent reform ordinance has sparked various questions,” said Arif Hossain Khan. “There are fears that individuals or groups involved in past irregularities might find a way back into bank ownership or management,” he added. Explaining the ordinance, the spokesperson noted that while former directors or sponsors could potentially regain ownership by paying a specific amount—7.5% of their dues—this is not an "automatic or indiscriminate" opportunity. Instead, the entire process will be subject to rigorous scrutiny and regulatory oversight. He further detailed that for anyone seeking to return to a bank board, Bangladesh Bank will first gather data from various agencies regarding any outstanding allegations. Specifically, reports on money laundering or suspicious transactions will be sought from the Bangladesh Financial Intelligence Unit (BFIU). “If there is a money laundering allegation against an individual, they must first be legally or institutionally cleared of those charges,” Khan emphasized. The spokesperson added that mere clearance from charges is insufficient; the financial conduct of the individual or institution, particularly their history of borrowing and repayment, will also be examined. Those with significant defaulted loans must adjust or settle them according to regulations to be considered for rehabilitation. “If the concerned parties can clear themselves through the standard legal process and settle all financial liabilities regarding past allegations—such as taking loans under various names, misappropriation, or laundering funds—then the regulator may not object to their participation,” he stated. However, he stressed that there is no scope for special favors or leniency. Each application will be judged based on data analysis and recommendations from relevant agencies to ensure the banking sector is not put at risk again. Financial analysts observe that while this stance signals a commitment to restoring discipline in the banking sector, the ultimate success depends on how strictly these policies are enforced to prevent the re-entry of controversial groups.

The Bangladesh Securities and Exchange Commission (BSEC) on Thursday reaffirmed that safeguarding investor interests will remain its foremost mandate as it works to energise the capital market through increased Initial Public Offerings (IPOs). Speaking at a discussion meeting titled "IPO Proceeds Utilization for Loan Repayment or Investments of Issuer" at the BSEC multipurpose hall in Agargaon, Commission Chairman Khondoker Rashed Maqsood said the regulator is committed to building a vibrant and sustainable capital market but not at the cost of investor protection. "The commission is working towards long-term and sustainable development of the capital market. Our efforts to encourage new company listings are ongoing," he said, adding, "but protecting investors remains one of BSEC's core mandates, and we will ensure that any policy development is consistent with that obligation." The meeting centred on how IPO proceeds may be used for loan repayment and investments and drew senior representatives from across the capital market ecosystem. Maqsood emphasised the need for stronger coordination among market institutions and said work is underway to bring public interest companies under a proper governance framework and to list fundamentally sound companies on the exchange. Business leaders and financial sector representatives at the meeting called on BSEC to adopt a more flexible stance on allowing IPO proceeds to retire debt. Syed Nasim Manzur, Managing Director of Apex Footwear and a member of the Private Sector Advisory Council, argued that most global markets impose no restrictions on using IPO funds for loan repayment. "Global standards should be considered in liberalising the use of IPO proceeds for debt settlement." Tapan Chowdhury, Chairman of the Central Depository Bangladesh Limited (CDBL) and Managing Director of Square Group, urged caution, however. He stressed that the actual benefit to the company or project must be carefully assessed before permitting such use. "Repaying loans for overly ambitious projects simply on the strength of a group's reputation would not be appropriate." Abdul Hai Sarker, Chairman of the Bangladesh Association of Banks (BAB) and Chairman of Dhaka Bank PLC, underscored the broader economic argument, saying a robust capital market is essential for maintaining global competitiveness and ensuring sustainable growth. Mashrur Arefin, Chairman of the Association of Bankers Bangladesh (ABB) and Managing Director of City Bank PLC, said companies should have the option to restructure their capital by using IPO proceeds to repay productive or expansion-related loans. He added that with appropriate control mechanisms, even loans rescheduled no more than twice could be considered for such repayment given current economic conditions. Riyad Mahmud, President of the Bangladesh Association of Publicly Listed Companies (BAPLC), echoed the call for flexibility, noting that even well-run companies may carry rescheduled debt due to global crises. "Rigid policies framed for ideal conditions will not serve us well. The realities of the economy must be taken into account." Dhaka Stock Exchange (DSE) Chairman Mominul Islam said companies should be allowed to repay loans using IPO proceeds where it genuinely benefits them, but stressed the need for rigorous verification beyond mere disclosure and compliance checks. Kamran T Rahman, President of the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), flagged a structural concern that long-term projects are being financed through short-term deposits. He called for policy alignment to channel long-term financing through the capital market instead. The meeting also covered developments in the bond market, long-term capital market financing, and corporate governance reforms. BSEC Commissioners Md. Mohsin Chowdhury, Md. Ali Akbar, and Md. Saifuddin, were among those present.