United News of Bangladesh

Global stock markets traded mixed on Tuesday as uncertainty over the Iran war and its impact on oil supply continued to unsettle investors. European markets opened higher, with France’s CAC 40 rising 0.6% to 8,034.62, Germany’s DAX gaining 1.1% to 24,574.98 and Britain’s FTSE 100 up 0.6% at 10,384.15. In contrast, US futures pointed slightly lower, with the S&P 500 futures down 0.2% and Dow Jones futures slipping less than 0.1%. In Asia, Japan’s Nikkei 225 fell 0.4% to close at 60,550.59, erasing earlier gains despite government data showing the economy expanded for a second straight quarter in January–March, driven mainly by stronger-than-expected consumer spending. South Korea’s Kospi dropped sharply, ending 3.3% lower at 7,271.66 after falling more than 4% earlier in the session. Major stocks were hit hard, with Hyundai Motor falling 8.9%, LG Electronics down 11.7%, Samsung Electronics losing 2% and SK Hynix declining 5.2%, tracking losses in US tech shares. Elsewhere in the region, Australia’s S&P/ASX 200 rose 1.2% to 8,604.70, while Hong Kong’s Hang Seng gained 0.5% to 25,797.85 and Shanghai Composite added 0.9% to 4,169.54. In energy markets, US crude oil fell 63 cents to $108.03 per barrel, while Brent crude dropped $1.59 to $110.51 per barrel. Prices have been volatile amid concerns that the Iran war could disrupt shipping through the Strait of Hormuz, a key route for global oil transport. Brent crude had been trading near $70 before the conflict escalated. Prices briefly eased after US President Donald Trump signalled a pause on a planned military strike on Iran, saying “serious negotiations” were underway. On Wall Street overnight, the S&P 500 slipped 0.1%, the Dow gained 0.3% and the Nasdaq fell 0.5%. Investors are now awaiting earnings from major US companies, including Nvidia, Target, Home Depot and Walmart, due later this week. In currency trading, the US dollar rose to 159.08 yen from 158.84 yen, while the euro slipped to $1.1632 from $1.1657.

Textiles and Jute Minister Khandakar Abdul Muktadir on Tuesday said the government aims to transform Bangladesh’s jute sector into a strong $5–7 billion industry from the current export earnings of around $1 billion through proper planning, modern technology, research, improved seed production and expansion of diversified jute products. “Although the country’s total export earnings have risen to around $50–55 billion, the contribution of the jute sector remains limited to nearly $1 billion. In this context, the government has taken timely initiatives to unlock the sector’s vast potential,” Muktadir said while inaugurating the Multi-purpose Jute Products Fair-2026 at the Jute Diversification Promotion Centre in Farmgate. The minister said around 90 percent of Bangladesh’s export earnings in fiscal year 1972-73 came from jute and jute goods following the country’s independence. “At that time, total export earnings stood at $348 million, of which the jute sector alone contributed $313 million.” Muktadir said the first priority for sustainable development of the jute sector is to achieve self-sufficiency in producing quality jute seeds. Currently, Bangladesh depends on imports to meet an annual demand of nearly 6,000 tonnes of jute seeds, he said, adding that steps would be taken to ensure domestic production of quality seeds and reduce import dependency. The minister said diversification of jute products, innovation in designs and expansion into high-value markets are essential to ensure fair prices for farmers. “To this end, investment in research, innovation and technological development will be increased.” Muktadir also said the government plans to undertake joint initiatives with leading Chinese universities to enhance productivity in the jute and leather sectors, develop improved seeds, introduce new products and create internationally competitive designs. “A comprehensive roadmap is being prepared in coordination with the Jute Diversification Promotion Centre and private sector stakeholders.” “At the same time, initiatives have been taken to bring state-owned jute mills under private management to ensure modernization, increased production and profit-oriented operations,” he said. The minister said Prime Minister Tarique Rahman is keen to restore the lost glory of the country’s jute sector. Under his leadership, the government will regularly review progress at every stage of the sector under a time-bound action plan and take necessary measures accordingly. Speaking as special guest, State Minister for Textiles and Jute Md Shariful Alam said collective efforts are needed to advance the economic and social transformation of the jute industry. “Only then will jute regain its past glory, earn huge foreign currency and improve the socio-economic condition of jute farmers and all those involved in the sector across the country.” Shariful said the revival of the sector would create new employment opportunities in both rural and urban areas. After the programme, the minister and state minister visited different stalls at the fair and exchanged views with entrepreneurs on the prospects, market expansion and existing challenges of jute products. The five-day fair will remain open to visitors every day from 10am to 9pm until May 23.  

The government has introduced a newly designed Tk 5 currency note under the theme “Historical and Archaeological Architecture of Bangladesh,” which will enter circulation from Tuesday. According to a press release issued by the Finance Division, the new note bears the signature of Finance Secretary Dr Md Khairuzzaman Mozumder and will initially be available from the Motijheel office of Bangladesh Bank before being distributed through its other offices across the country. The new Tk 5 note measures 117 mm by 60 mm and features an image of Tara Mosque in Dhaka on the left side of the front panel. The middle portion carries a background design with Bangladesh’s national flower, the water lily, including leaves and buds. The reverse side of the note contains an image titled “Graffiti-2024.” The note has a predominantly light pink colour scheme and includes several security features. These include a 2 mm-wide embedded security thread visible from both sides when held against light, and a watermark showing the face of a Royal Bengal Tiger along with a bright electrotype watermark marked “5” and the monogram of the Government of Bangladesh. In addition, the front side contains repeated microprinted “BANGLADESH” text above the bluish guilloche pattern at the lower portion of the note. The Finance Division said all existing paper notes and metallic coins currently in circulation will remain valid alongside the new Tk 5 note. Considering the interest of currency collectors, Bangladesh Bank has also printed non-exchangeable specimen notes of the new Tk 5 design. These can be collected at a fixed price from the Bangladesh Bank Currency Museum in Mirpur.

To facilitate hassle-free, world-class medical services for apparel exporters, a special "Privilege Card" from Singapore's renowned Mount Elizabeth Hospital was officially launched for the members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and their families. The card was unveiled at a joint ceremony organized by BGMEA and Mount Elizabeth Hospital at a city hotel on Sunday, according to a press release issued on Monday. BGMEA, BKMEA leaders meet PM The launch follows a Memorandum of Understanding (MoU) signed on December 10, 2025, between BGMEA and Parkway Hospitals Singapore (now IHH Healthcare Singapore), under the leadership and initiative of BGMEA Directors Shah Rayeed Chowdhury and Nafis-Ud-Doula. Speaking at the event, BGMEA Director Shah Rayeed Chowdhury said, "We are delighted that the CEO of Mount Elizabeth Hospital, Singapore, has joined us in person, demonstrating their utmost commitment to BGMEA members. Through this card, BGMEA general members and their families will receive direct VIP status, special corporate discounts, and top priority within Singapore's world-class medical network, completely by passing any middleman or bureaucratic delays, said Shah Rayeed Chowdhury. He added that this initiative is part of the current board's ongoing and relentless efforts to ensure the overall welfare of its members. Yong Yih Ming, Chief Executive Officer of Mount Elizabeth Hospital, expressed his pride in partnering with a leading trade organization like BGMEA. "Through this Privilege Card, BGMEA members and their families can access advanced and specialized healthcare services in Singapore with premium convenience, comfort, and top priority," he said. Zahid Hasan Khan, Director of Mount Elizabeth Hospital Singapore (Bangladesh Office), detailed the scope of benefits under the new card. Under the privilege facility, BGMEA members and their dependents will enjoy special corporate discounts on various fixed medical packages, including Executive Health Screenings. Other exclusive benefits include- 24-hour dedicated emergency hotline access, highest priority in medical visa processing and specialist appointments, complimentary airport pickup from Singapore’s Changi Airport to the hospital, free medical care planning, consultations, and institutional support. The launching ceremony was also attended by IHH Healthcare Country Manager (Bangladesh, China, and Myanmar) Jack Tan; BGMEA Director Joarder Mohammed Hosne Quamar Alam, among others were present in the event.

Scheduled banks across the country will remain closed for seven consecutive days – from May 25 to May 31 – on the occasion of Eid-ul-Azha, according to Bangladesh Bank (BB). The central bank issued a notification on Monday stating that in accordance with the Ministry of Public Administration’s notification, all branches and sub-branches of scheduled banks will operate under normal working hours on May 23 (Saturday) and May 24 (Sunday), right before the holidays begin. Govt to cut bank borrowing in FY27 to spur private credit, curb inflation However, special arrangements have been made to facilitate the payment of salaries, bonuses, and other allowances to garment workers, as well as to keep import and export activities active ahead of the festival. To support this, bank branches located in garment-industrial zones, including Dhaka city, Ashulia, Tongi, Gazipur, Savar, Bhaluka, Narayanganj, and Chattogram, will remain open on a limited scale on May 25 and 26. According to the BB directive, during those two days, the office hours for these specific branches will be from 10:00am to 3:00pm, while transactions will be conducted from 10:00am to 1:00pm. Furthermore, bank branches, sub-branches, and booths situated in sea port, land port and airport areas have been directed to keep import-export activities functional on a limited scale. The central bank instructed the relevant desks to continue essential banking operations throughout the holiday period (from May 25 to May 31, excluding Eid day.

The government is set to implement a strategic shift in the national budget for fiscal year 2026-27 by significantly reducing its reliance on internal debt, particularly from the banking sector, according to an official working on budget preparation. This move aims to maintain macroeconomic stability, control persistent inflation, and ensure an uninterrupted flow of credit to the private sector, the official said, wishing anonymity. According to sources at the Ministry of Finance and Bangladesh Bank, the proposed budget for FY27 is estimated at Tk 9.38 lakh crore. While the projected budget deficit stands at approximately Tk 2.43 lakh crore, the government plans to borrow only Tk 1.19 lakh crore from internal sources. This represents a Tk 18,000 crore reduction from the current fiscal year's revised internal borrowing target of Tk 1.37 lakh crore. Shift Towards Foreign Financing To bridge the deficit while easing pressure on local banks, the government is pivoting towards long-term and more affordable international loans. The target for foreign borrowing is projected to reach Tk 1.16 lakh crore in the next fiscal year, nearly doubling the current year's revised target of Tk 63,000 crore. Officials believe that reduced government borrowing will leave banks with surplus funds to invest in industrialisation and business expansion. Furthermore, this strategy is expected to mitigate the inflationary pressures previously caused by excessive bank borrowing and the printing of money by the central bank. Aggressive Revenue Targets and Reforms To compensate for the reduction in internal debt, the National Board of Revenue (NBR) is undertaking massive reforms to achieve a revenue collection target of Tk 6.95 lakh crore. Key measures include expanding the tax net and withdrawing various VAT exemptions, increasing tax rates on online gaming and luxury goods, and enhancing transparency and liquidity within the banking sector. Economists have welcomed the move on paper but cautioned that its success depends heavily on the pace of foreign aid disbursement and the government's ability to meet its ambitious revenue targets. Former NBR Chairman Dr Muhammad Abdul Majid warned that if the NBR fails to collect the desired revenue, the government might be forced to return to heavy bank borrowing by the end of the year, risking further financial instability. While talking to UNB, he emphasised the need for strict monitoring and financial discipline from the beginning of the fiscal year.  

Bangladesh’s proposed FY2026-27 budget faces a ‘near-impossible revenue challenge’ that could force the government to choose between paying civil servants more and protecting the poor, the Citizen’s Platform warned Monday. The government has set a revenue target of Tk 6.95 lakh crore for FY27, implying a growth rate of at least 42 percent over the revised FY26 target ,CPD Additional Research Director Towfiqul Islam Khan said presenting a keynote at a pre-budget dialogue at a hotel in Gulshan, organised by the Citizen’s Platform for SDGs, Bangladesh. “No historical benchmark supports this,” he cautioned, noting that even the most optimistic compound annual growth rate from FY01 to FY19 stood at just 15.6 percent, and would still result in a shortfall of Tk 1.3 lakh crore. The National Board of Revenue (NBR) collected only Tk 2.89 lakh crore in the first nine months of FY26 against a revised target of Tk 5.03 lakh crore, meaning revenue must grow 96 percent in the final quarter alone to meet the annual goal, a scenario CPD described as virtually impossible. Towfiq said the proposed Ninth Pay Commission recommendations, which would raise minimum government salaries from Tk 8,250 to Tk 20,000 and maximum salaries from Tk 78,000 to Tk 1,60,000, would require an additional Tk 1.06 lakh crore beyond the government's current annual salary, allowance and pension bill of Tk 1.31 lakh crore. While the government is reportedly considering implementing only 50 percent of the recommended basic salary increase in FY27, at a cost of Tk 30,000 to 35,000 crore, Towfiq cautioned that once rolled out, the pay scale cannot be reversed, and will squeeze allocations for subsidies, development projects and electoral commitments. A central theme of the presentation was what Citizen’s Platform called “the tax expenditure paradox.” Bangladesh's NBR tax-to-GDP ratio has fallen to 6.6 percent in FY25, among the lowest in the world, while the country simultaneously forgoes roughly 6.9 percent of GDP through tax exemptions, based on FY22 data. “Bangladesh forgoes nearly as much as it collects,” Towfiq said, noting that direct tax expenditure alone was 148 percent of direct tax collection in FY21. The IMF, in its April 2025 review, suggested Bangladesh to begin phasing out tax exemptions from FY27. CPD recommended a calibrated approach, retaining exemptions on remittance income and standard salary deductions while phasing out concessions to power and energy firms, microcredit institutions, large garments conglomerates and autonomous bodies. Citizen’s Platform also flagged concerns over news reports suggesting the government may reintroduce tax amnesty for undisclosed income in FY27, calling it a move that would “directly contradict” the rationalisation agenda and breach a political consensus reached by all parliamentary parties. On the debt front, the IMF has downgraded Bangladesh to “moderate risk” of both external and overall debt distress. Debt service liability, interest plus principal repayments, accounted for 26 percent of total expenditure in FY24, exceeding the entire Annual Development Programme outlay by 15 percent. Bangladesh's debt service-to-revenue ratio stood at 33.4 percent in FY24, nearly double the 18 percent threshold set by the IMF for countries with medium debt-carrying capacity. Platform’s field assessment, conducted across 18 districts between May 2 and 11, found that flagship welfare programmes, the Family Card, Farmers Card, mid-day meals and free school uniforms, were showing early implementation cracks. Beneficiary selection remained unclear, grievance mechanisms were barely functional, and food quality complaints were surfacing in the school meals programme. The Family Card scheme, which aims to reach 50 lakh beneficiaries at Tk 2,500 per month, is estimated to cost Tk 14,500 crore. The Farmers Card targeting 42.5 lakh beneficiaries at Tk 2,500 annually would cost approximately Tk 1,062 crore. Summing up the budget outlook, Towfiq framed the FY27 challenge as a collision between economic compulsion and political necessity. Revenue must grow 42 percent, debt servicing is approaching a peak, and IMF conditionalities demand reform, while the government simultaneously faces pressure to raise salaries, expand subsidies and deliver on 51 manifesto commitments. “Budget FY2026-27 faces dual pressures, balancing economic stability and reforms while meeting political demands to deliver quickly, all within the tightest fiscal space in recent memory,” he said. Towfiq also urged the government to make the Ninth Pay Commission report public, publish FY25 tax expenditure estimates, and bring transparency to ADP project documents, including feasibility studies and impact assessments. “History may ultimately remember this administration for its concluding budget, rather than its beginning.” Citizen's Platform for SDGs, Bangladesh, a network of civil society organisations, is  working to advance the Sustainable Development Goals at the national level. The event brought together policymakers, economists, development practitioners and civil society representatives ahead of the national budget expected to be placed before parliament next month.

Asian stock markets mostly fell on Monday while oil prices surged after US President Donald Trump warned that “the clock is ticking” for Iran as efforts to reach a lasting agreement to end the conflict remain stalled. US stock futures also moved lower, with major indexes losing more than 0.6 percent. Japan and South Korea pulled back further after recent record highs. Japan’s Nikkei 225 dropped 0.9 percent to 60,843.09, led by losses in technology shares. The index had touched a record intraday high above 63,000 last week. The yield on Japan’s 10-year government bond rose to 2.8 percent, its highest level since the late 1990s, as the Bank of Japan gradually raises interest rates and higher energy prices fuel inflation concerns. In South Korea, the Kospi gained 0.9 percent to 7,558.50 after recovering from earlier losses. The index had crossed 8,000 on Friday, driven by strong demand for technology stocks linked to the artificial intelligence boom, before easing on profit-taking. Hong Kong’s Hang Seng Index fell 1.6 percent to 25,543.32, while China’s Shanghai Composite slipped 0.1 percent to 4,132.24 after weaker-than-expected retail sales data for April. Australia’s S&P/ASX 200 lost 1.4 percent to 8,508.40. Taiwan’s Taiex declined 1.1 percent, and India’s Sensex was down 0.6 percent. Oil prices climbed sharply after Trump said in a social media post that Iran should act quickly or “there won’t be anything left of them,” following a phone call with Israeli Prime Minister Benjamin Netanyahu. Investors remain cautious because of uncertainty over the Strait of Hormuz, a key route for global oil and gas shipments. The waterway remains largely closed, while the US has maintained a maritime blockade on Iranian ports since last month. Tensions increased further after a weekend drone attack on a nuclear power plant in the United Arab Emirates. Brent crude, the international benchmark, rose 1.9 percent to $111.31 per barrel. US benchmark crude gained 2.3 percent to $107.83 per barrel. Oil had been trading near $70 a barrel in late February before the conflict began. Analysts at ING Group said the risk of renewed escalation is increasing, despite some improvement in shipping activity around the Strait of Hormuz. The oil market is also reacting to the lack of progress following last week’s summit in Beijing between Trump and Chinese President Xi Jinping. The White House said both countries agreed that the Strait of Hormuz must remain open. Washington had hoped Beijing could use its close economic ties with Tehran to help broker a peace deal. In the bond market, the yield on the US 10-year Treasury note rose to about 4.63 percent, up from 4.47 percent last Thursday and nearly 4 percent before the conflict began. On Friday, the benchmark S&P 500 fell 1.2 percent from the record high it set a day earlier. The Dow Jones Industrial Average dropped 1.1 percent, while the Nasdaq Composite lost 1.5 percent. In currency trading, the US dollar rose to 159.02 Japanese yen from 158.62 yen. The euro edged up to $1.1626 from $1.1622.  

Dhaka Stock Exchange PLC (DSE) and Swisscontact Bangladesh signed a Memorandum of Understanding (MoU) on Sunday aimed at strengthening the SME sector in the capital market and advancing sustainable, inclusive economic development through the country's securities ecosystem. Senior officials from both organisations, including DSE Managing Director Nuzhat Anwar and Swisscontact Bangladesh Country Director Helal Hossain, were present at the signing ceremony. Nuzhat said mutual coordination and a clear roadmap had enabled swift implementation of the initiative, which she believes will play a pivotal role in developing the SME sector. She stressed the need for capacity building, corporate governance support, and compliance assistance to increase SME participation in the capital market. Swisscontact Bangladesh Country Director Helal Hossain noted that while SME companies are a key driver of Bangladesh's economy, they continue to face significant challenges related to financing, competitiveness, and compliance. He underscored the urgency of creating alternative financing and equity-based capital-raising opportunities for SMEs in the current economic climate, expressing hope that the partnership with DSE would serve as a catalyst in bringing promising SME enterprises into the capital market fold. Under the MoU, both organisations will collaborate across strategic sectors including readymade garments (RMG), healthcare, and agriculture. Joint programmes will also cover environmental, social and governance (ESG) standards, sustainability reporting, entrepreneurship development, financial inclusion, climate resilience, trade facilitation, and skills development. The two institutions will jointly conduct capacity-building programmes, awareness workshops, incubation support, and advisory activities to encourage broader capital market participation. Cooperation is also planned on developing sustainable finance instruments, including green bonds, sustainability-linked bonds, sukuk, and blended-finance models.

Li Shaopeng, Cultural Counselor of the Chinese Embassy in Dhaka, said on Saturday that tea is playing a significant role in enhancing friendly relations between Bangladesh and China. He made the remarks while speaking in a seminar as the guest of honour. The seminar was on ‘Tea and the World: Aesthetic Meeting,’ organized by the Chinese Corner of the Political Studies Department at Shahjalal University of Science and Technology (SUST). "Tea is not just a beverage; it is a symbol of friendship, mutual respect, and people-to-people connection between Bangladesh and China," Li said. "In Chinese civilization, tea represents harmony, patience, wisdom, and human connection." SUST Vice-Chancellor Prof. Dr. AM Sarwar Uddin Chowdhury attended the event as the chief guest, while Pro-Vice Chancellor Prof. Dr. Sajedul Karim and other senior faculty members were present as special guests. During the technical session, Dr. Yang Hui, Director of the Confucius Institute at Dhaka University, presented a keynote on the history and traditions of Chinese tea culture. The seminar also featured a cultural segment including dance and musical performances by students. A highlight of the event was a day-long art exhibition featuring 20 paintings by various artists, depicting their travel experiences in China and various aspects of Chinese culture. The event was presided over by Prof. Dr. Md. Nazrul Islam, Head of the Political Studies Department, and moderated by Prof. Dr. Md. Shahabul Haq, Coordinator of the Chinese Corner. Organizers noted that the exhibition remained open to students and visitors throughout the day to promote cultural understanding through art and tradition, according to a press release.