United News of Bangladesh

The European Union's apparel imports experienced an 11.27 percent negative growth during the January-February period of 2026, totaling €13.83 billion, according to the latest data from Eurostat. The contraction in the EU fashion retail market was driven by a 6.23 percent decline in import volume and a 5.38 percent decrease in average unit prices compared to the same period last year. Bangladesh, one of the primary apparel suppliers to the EU, took a significant hit as its garment exports to the bloc fell to €2.89 billion during the first two months of 2026, dropping sharply from €3.57 billion recorded in the corresponding period of 2025. EU delegation visits Apex factory, praises sustainability efforts The country registered a substantial 19.26 percent negative growth in export value to the EU, compounded by an 11.14 percent decrease in shipment volume and a 9.13 percent drop in unit prices. A month-on-month comparison reveals that in February 2026 alone, Bangladesh's apparel exports to the EU declined by 12.39 percent in value, 3.30 percent in volume, and 9.39 percent in unit prices compared to February 2025. "Exporters are grappling with severe margin compression, losing revenue on both ends due to fewer work orders and lowered per-unit prices amid global demand softness," said Mohiuddin Rubel, Former Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Additional Managing Director of Denim Expert Ltd. A broad-based downward trend was visible across almost all major manufacturing hubs supplying the European market. China, the largest apparel exporter to the EU, managed to increase its export volume by 1.34 percent, but still registered a 4.01 percent decline in total value, reaching €4.20 billion, due to a 5.27 percent drop in its unit prices. Among other major competitors, Turkey faced a massive 22.91 percent decline in its apparel exports to the EU, falling to €1.20 billion. Vietnam also remained in negative territory with a 2.06 percent  decline in export value, totaling €711.73 million, despite recording a 6.56 percent increase in its unit prices. Other key supplying nations, including India, Pakistan, and Cambodia, similarly mirrored the negative growth trend, reflecting persistent cost-of-living pressures and cautious consumer spending across the Eurozone.

The price of jet fuel in Bangladesh has been reduced by Tk 39.57 per litre, with the new rates taking effect from midnight on Saturday. The Bangladesh Energy Regulatory Commission (BERC) announced the decision in a statement issued on Saturday. The latest adjustment follows a previous cut of Tk 22.35 per litre on 7 May. Prior to that, jet fuel prices were increased by nearly Tk 25 per litre on 7 April, following a sharp rise of Tk 90 per litre on 24 March. Under the revised rates, the price of jet fuel for domestic flights has been lowered to Tk 165.88 per litre from Tk 205.45. Fuel prices for international flights have also been reduced, falling to 1.0823 US dollars per litre from 1.3385 US dollars. According to BERC, a hearing on the pricing adjustment was held on 23 May. Following a review, the commission decided to revise mid-May prices for Jet A-1 fuel based on the average Platts benchmark rate in the international market between 5 May and 21 May, the US dollar exchange rate used in settlement of letters of credit by the Bangladesh Petroleum Corporation (BPC), and the existing price of diesel.

Industry stakeholders and business leaders on Saturday strongly demanded the formation of a dedicated National Leather Board to serve as a regulatory and guardian body for the country’s struggling leather sector. Alongside the demand for a centralized board, they urged the government to ease loan facilities for raw hide preservation, simplify the import of essential chemicals, and remove existing barriers to international compliance certification. The demands were raised at a seminar titled "Finding Ways to Overcome the Existential Crisis of the Leather Industry," organized by the Leather Industry Development Foundation of Bangladesh at the Economic Reporters' Forum (ERF) auditorium in the capital's Purana Paltan on Saturday. Presenting the keynote paper, Sadat Hossain, Convener of the Leather Industry Development Foundation of Bangladesh, pointed out the institutional neglect the sector faces despite its massive potential. "We have a Tea Board for the tea industry and a dedicated Ministry of Textiles and Jute for the apparel sector. However, there is no guardian agency to oversee the leather sector. Therefore, the formation of a National Leather Board is a critical necessity," Sadat Hossain said while presiding over the seminar. He lamented that although the leather sector achieves a high local value addition of over 40 percent, it receives very little state priority. In contrast, he alleged, the garment sector secures 97 percent of national incentives while contributing only a 15 percent value addition. To overcome compliance hurdles and global certification challenges, speakers at the seminar proposed setting up small, localized Effluent Treatment Plants (ETPs) in individual tanneries with financial assistance from the World Bank. They suggested that these micro-ETP loans could be structured to be repaid over a flexible 20-year period. Furthermore, to stimulate domestic demand and promote local industrial growth, speakers proposed that the government make leather shoes and school bags mandatory for school-going children across the country. The event was attended by top sector entrepreneurs, leather technologists, and economic experts, who all stressed immediate policy intervention to protect the country's second-largest export-earning prospect from sliding into a deeper crisis.

A high-level delegation from the European Union recently visited the factory of Apex Footwear Limited in Gazipur to observe how global best practices are being maintained in Bangladesh’s footwear and leather industry. The delegation, led by EU Ambassador Michael Miller, witnessed the facility as part of a broader EU initiative to promote industry-wide sustainability. German Ambassador Rüdiger Lotz and Italian Ambassador Antonio Alessandro were also part of the delegation, according to a media statement issued on Saturday. Ambassador Miller called the visit a reflection of the strong ties between Europe and Bangladesh's industrial sector.

Bangladesh Bank (BB) on Saturday announced a massive Tk 60,000 crore stimulus package for 2026, aiming to revitalise a slowing national economy, spur private sector development and generate over 2.5 million jobs. Bangladesh Bank Governor Md. Mostaqur Rahman made the announcement at a press briefing at the central bank headquarters. Detailing the interest rate structure, the governor said commercial banks will disburse loans under the package at a market interest rate of 10 to 11 pc. To ease the burden on businesses, the central bank will provide an interest subsidy of 6 to 7 percent, effectively allowing receiving entrepreneurs to secure funds at a subsidised interest rate of just 4 percent. "Over the past three years, our national economy has faced consecutive growth slowdowns," Governor Rahman said, highlighting the urgency of the intervention. "Our Gross Domestic Product (GDP) growth which previously stood at 5.8 percent, subsequently dropped to 4.2 pc. Under the current economic climate, it is projected to further decelerate to 3.7 percent." The governor noted that alongside the macroeconomic slowdown, key industrial pillars—including ready-made garments (RMG), textiles, steel, ceramics, information technology, and manufacturing—have sustained major blows. "Furthermore, our banking sector is under mounting pressure. We are witnessing a sharp rise in non-performing loans (NPLs), instances of money laundering, and a visible decline in depositor confidence," he added. He emphasised that prevailing high interest rates have also discouraged Small and Medium Enterprises (SMEs) from expanding their businesses. "To confront these critical challenges and breathe new life into the financial ecosystem, the central bank has launched this special scheme to revitalise and stabilise our economy." Fund Structure and Breakdown: The Tk 60,000 crore fund is split into two primary funding mechanisms: Refinancing Fund (Tk 41,000 Crore): Sourced from commercial banks holding excess liquidity through long-term deposits of three years or more, at a 10 percent interest rate. BB’s Own Resources (Tk 19,000 Crore): Drawn directly from the central bank’s own funds, backed by a government guarantee. Strategic Allocations and Employment Targets: The stimulus package strongly prioritises restoring industrial production capacity and boosting rural development. A lion's share of Tk 20,000 crore has been earmarked for the Closed Industry & Service Sector, which is expected to create 200,000 jobs by helping shuttered factories reopen and fulfill pending export orders. Other key allocations under the refinancing scheme include: Agriculture & Rural Activities: Tk 10,000 crore, targeting the creation of 900,000 jobs. CMSME Sector: Tk 5,000 crore, aimed at generating 500,000 jobs. North Bengal Agricultural Hub: Tk 3,000 crore specialised fund for production, preservation, and export processing. Export Diversification: Tk 3,000 crore to expand the basket of goods and services shipped overseas. Targeted Sectoral Support: Under its own funding component, Bangladesh Bank has designated resources for various specialised and vulnerable sectors: Cottage & Micro Entrepreneurs: Tk 5,000 crore. Pre-Shipment Credit for Export Sector: Tk 5,000 crore. Traditional Export Sectors: A combined Tk 4,000 crore allocated for leather, footwear, frozen shrimp, and fish exports. Youth & Overseas Employment: Tk 1,000 crore each to facilitate skilled placements and create jobs for the unemployed. Creative Economy & Startups: Tk 500 crore each to foster technological and cultural innovation. Deputy Governors Nurun Nahar, Habibur Rahman and Dr. Md Kabir Ahmed, among other senior officials, were present.

Commerce Minister Khandakar Abdul Muktadir on Saturday said the government has no plans to establish or operate any new state-owned mills or factories, reaffirming that the private sector will drive industrial growth while the government plays a facilitative role. “The government will not do business. Business will be done by the private sector, and the government will provide support,” Muktadir said at a seminar titled “Sustainable Transition to Employment: Preparedness and Pathways for Textile Students,” held at the Jute Diversification Promotion Centre in Farmgate. Industries will be expanded further to reduce unemployment: Minister Muktadir The minister, who also oversees the textiles and jute portfolio, said the government's role would be limited to policy support and creating an enabling environment for industry. Stressing the need to modernise the textile sector before its workforce challenges could be addressed, Muktadir said, “If the industry is in crisis, employment for students will not be sustainable either.” He called for timely revision of curricula at textile institutes and engineering colleges to keep pace with technological advancement, proposing that the Bangladesh Textile Mills Association (BTMA) and capable private mills be formally linked with educational institutions. The initiative, he said, would ease faculty shortages, accelerate technological upgradation and give students direct exposure to real industry settings. The minister also identified energy supply uncertainty, high production costs, elevated cost of funds, and technological constraints as the sector's key challenges, adding that the government is working to address them. He said the textile sector would be made more competitive through promotion of man-made fibres, new product development, and value chain upgradation. Textiles and Jute Secretary Abdun Naser Khan inaugurated the event. The keynote paper was presented by Dr. Abbasuddin Shayak, Associate Professor at Bangladesh University of Textiles. Senior officials from textile and jute ministry departments, industry leaders, entrepreneurs, and former and current textile students attended the event.

Exorbitant tax structures levied on the country's mobile telecom sector are functioning as a critical barrier to internet connectivity, digital inclusion, and overall economic performance, according to a new comprehensive report. The research document titled “Bangladesh Can Increase Economic Growth by Lowering Barriers to Digital Connectivity”, prepared by global advisory firm Frontier Economics Limited for digital operator VEON, outlines how rationalising these heavy fiscal constraints could act as a massive catalyst for macroeconomic acceleration and ultimate expansion of the government's tax base. According to the report, Bangladesh maintains an exceptionally low general tax-to-GDP ratio of 7.6 percent, far below the Asia-Pacific regional average of 20 percent. Yet, the government relies disproportionately on the mobile telecom ecosystem to generate revenues, subjecting it to penalising tax brackets compared to regional neighbours. Citing estimates from global telecom body GSMA, Frontier Economics highlighted that total combined taxes, statutory duties, and regulatory fees swallow up a staggering 55 percent of the mobile sector’s entire revenue stream in Bangladesh. This effectively channels US$ 0.55 of every single dollar earned by mobile operators straight to the national exchequer. The analysis points out that total sales, usage, and turnover taxes on consumers and operators sum up to a punishing 39 percent (compared to the standard national VAT rate of 15 percent), which balloons to 47 percent of the Average Revenue Per User (ARPU) when factored alongside mandatory revenue sharing mechanisms (5.5 percent), the Social Obligation Fund (1 percent), and minimum turnover thresholds. Furthermore, corporate profits for non-publicly traded mobile entities are taxed at 45 percent (and 40 percent for publicly traded operators), towering vastly above the baseline corporate tax rate of 22.5 percent to 27.5 percent enforced across other commercial sectors. The report also takes sharp aim at the fixed Tk 300 tax applied to every new SIM connection. It labels this consumer levy as severely regressive in a "mobile-first" economy where lower-income communities face acute affordability challenges to access basic smartphone data. The resulting operational squeeze has severely hampered local telecommunication advancement. Despite domestic mobile networks successfully building out a 99 percent population footprint for 4G coverage, operator ARPU has been choked down to a meager $ 1.2 per month. "Low ARPU and weak smartphone penetration inevitably impact the ability of operators to profitably invest further in their networks—for example, to expand capacity or deploy 5G," the report stated. Driven by these restricted capital investments, Bangladesh currently logs a modest average mobile download speed of 40 mbps, ranking a lowly 91st out of 105 surveyed nations globally. Currently, only 38 percent of the adult population in Bangladesh own smartphones, leaving millions locked out of the modern digital fold. Econometric modelling mapped out in the study demonstrates that bringing mobile sector taxes into alignment with general economic benchmarks would deliver compounding fiscal and development returns. Frontier Economics modelled a scenario where the 20 percent Supplementary Duty is lowered to 5 percent, regulatory revenue sharing drops to 1 percent, and the SIM tax is entirely abolished. The projections indicate that such reforms will trigger a 4 percent surge in data usage per subscriber and a 5 percent increase in mobile penetration. Most notably, the model shows this digital surge will accelerate Bangladesh’s annual real GDP per capita growth rate from its baseline projection of roughly 6.6 percent up to 7.2 percent. Addressing the government’s immediate revenue anxieties, the report acknowledges that a localised tax rollback will induce an initial, short-term deficit in sector-specific collections – calculated at approximately $ 761 million in the first year. However, the firm notes that the structural transformation will be fully self-funding within a brief window. The massive productivity spike in the wider economy will broaden the overarching national tax base, yielding a complete, positive fiscal break-even by the year 2030. To achieve the long-term socioeconomic benchmarks laid down in the state’s ICT Master Plan and the Smart Bangladesh Vision 2041, the study urges policymaking organs to implement immediate corrective frameworks. It explicitly recommends rebalancing national tax policy away from sector-specific consumption penalties that artificially inflate consumer data prices, eradicating entry barriers like access charges that keep marginal citizens offline, and explicitly communicating fiscal adjustments as an investment to formalise broader economic activity. "Reducing these barriers promotes inclusion and expands the user base that later contributes to the wider tax base," the study concluded, emphasising that the temporary fiscal dip remains entirely manageable against the permanent economic dividend.

Asian stock markets moved higher on Friday after modest gains on Wall Street, while oil prices continued to rise as uncertainty surrounding the Iran war persisted and diplomatic efforts showed little progress. Oil prices had dropped slightly in US trading on Thursday, helping ease pressure on global bond markets as Treasury yields fell. Earlier this week, rising yields had raised concerns about slower global economic growth and weaker demand for stocks, bitcoin and other investments. Japan’s Nikkei 225 jumped 2.7% to 63,352.44 after data showed inflation slowed to a four-year low of 1.4% in April, despite higher fuel costs linked to the war. South Korea’s Kospi index gained 0.6% to 7,860.59. In Hong Kong, the Hang Seng Index rose 1.2% to 25,685.65, while China’s Shanghai Composite Index added 0.5% to 4,096.24. Australia’s S&P/ASX 200 advanced 0.5% to 8,664.00. Taiwan’s Taiex climbed 1.5%, while India’s Sensex edged up 0.2%. Oil prices remained high due to concerns over disruptions around the Strait of Hormuz, a key route for global oil and gas shipments. Shipping activity in the area remains far below levels seen before the Iran war began in late February. Ongoing talks between the United States and Iran have also failed to provide clarity. Meanwhile, Republicans in Congress faced difficulties on Thursday in gathering enough support to block legislation that would force President Donald Trump to pull the US out of the conflict. Votes on the issue have now been pushed back to June. Brent crude, the global benchmark, rose 1.5% to $104.08 per barrel. Before the war started in February, it was trading around $70 per barrel. US benchmark crude gained 0.9% to $97.25 per barrel. “Markets are still looking for signs of progress in possible US-Iran negotiations,” ING commodities strategists Warren Patterson and Ewa Manthey said in a note Friday. “There are some hopeful signs, but uncertainty still dominates.” On Wall Street, the S&P 500 rose 0.2% to 7,445.72 on Thursday. The Dow Jones Industrial Average gained 0.6% to 50,285.66, while the Nasdaq composite added 0.1% to 26,293.10. Shares of Nvidia fell 1.8% despite reporting stronger-than-expected quarterly earnings driven by demand for artificial intelligence technology. Some analysts said the company’s stock may still be undervalued. Southwest Airlines rose 2.7% and American Airlines gained 4.9% after oil prices briefly eased before climbing again. Shares of Ralph Lauren surged 13.9% following better-than-expected quarterly results. In currency trading early Friday, the yield on the US 10-year Treasury note stood at 4.56%, down from above 4.67% earlier this week when inflation concerns linked to the war pushed yields sharply higher. The US dollar rose slightly to 159.02 Japanese yen from 158.98 yen. The euro slipped to $1.1613 from $1.1619.

Bangladesh Bank (BB) on Thursday issued a set of directives to all banks, Mobile Financial Services (MFS) providers, Payment Service Providers (PSPs), and Payment System Operators (PSOs) to keep banking and digital transaction systems fully operational during the upcoming Eid-ul-Azha holidays. The central bank issued a circular in this regard on Thursday, describing the matter as "highly important" to ensure hassle-free transactions for customers. According to the circular, financial institutions must maintain uninterrupted services across automated teller machines (ATMs), point of sale (POS) terminals, QR codes, internet banking, online e-payment gateways, and MFS platforms throughout the holiday period. The central bank directed banks to ensure 24/7 services at all ATM booths. Financial institutions must promptly resolve any technical glitches that may arise. The BB also emphasized maintaining an adequate supply of cash and ensuring round-the-clock security at the booths, suggesting that bank officials inspect ATM facilities if necessary. While POS and QR code-based transaction systems must remain active at all times, the central bank ordered operators to raise awareness among merchants and customers to prevent fraudulent activities. To bolster security for internet banking and online e-payment gateways, the central bank has made Two-Factor Authentication (2FA) mandatory. This security measure must be strictly enforced, particularly for "Card-Not-Present" (CNP) online transactions. Additionally, receiving banks have been instructed to credit customer accounts immediately upon receiving settlement reports for transactions featuring the '85' branch code. MFS providers have been asked to maintain seamless operations and ensure a sufficient supply of cash at agent points. Bangladesh Bank also instructed them to take necessary preparations to manage the surge in transaction volumes typical of the festive season. The circular states that customers must be notified instantly via SMS alerts for all types of electronic transactions. To prevent any form of customer harassment or distress, financial institutions must operate a 24/7 customer helpline. Furthermore, the central bank advised running awareness campaigns in the media to safeguard digital transactions and prevent fraud. The circular noted that all previous guidelines issued by the department regarding holiday operations must also be strictly followed.

The Bangladesh Outbound Tour Operators Forum (BOTOF) hosted its Annual Members Meet 2026 in Dhaka on Thursday, bringing together travel industry leaders, international airline representatives, tourism authorities and outbound tour operators to strengthen collaboration and explore growth opportunities in Bangladesh’s expanding outbound travel market. The event, held at Hotel Sarina in Banani, convened stakeholders from across the travel and aviation sector at a time when international travel demand among Bangladeshi travellers continues to rise. BOTOF said the annual gathering serves as a platform to strengthen ties between local outbound operators and global tourism partners while addressing industry challenges and identifying new opportunities for growth. In his welcome remarks, the BOTOF president said the organization remains committed to strengthening Bangladesh’s position in the global outbound travel industry through stronger partnerships and market engagement. “This annual gathering reflects our unwavering commitment to elevating Bangladesh’s position in the global outbound travel landscape. We are proud to have the support of such distinguished international partners who share our vision,” he said. Mohammad Shoeb, marketing manager and country in-charge of Tourism Malaysia, delivered an audio-visual presentation showcasing Malaysia’s tourism offerings for Bangladeshi travellers. Shorna Das, country manager of Malaysia Airlines Berhad, also addressed attendees. The Tourism Authority of Thailand presented promotional content through Vaishali Sharma, marketing officer, highlighting Thailand’s appeal as a major destination for Bangladeshi travellers. Shofi Ul Alam, assistant general manager (sales) at Thai Airways International, discussed aviation connectivity and the airline’s engagement with the Bangladesh market. Saudi Arabia’s growing tourism sector was also featured, with Aamir Haque, head of trade for Bangladesh at the Saudi Tourism Authority, outlining travel prospects and destination offerings. Representatives from SriLankan Airlines and Turkish Airlines emphasized the importance of Bangladesh as an emerging outbound travel market. S M Sharif, manager of sales and marketing at SriLankan Airlines, and Md Zakir Hossain, sales official at Turkish Airlines, spoke on regional connectivity and travel demand. Travel technology providers also highlighted innovation in the sector. Mohammad Saiful Hoque, country general manager and CEO of Sabre Travel Network (BD) Ltd, discussed digital transformation and booking technologies shaping the travel industry, while a representative from Travelport spoke on technology-driven solutions for travel operators. The event also included the formal introduction of the TOAB (Tour Operators Association of Bangladesh) election panel, “TOAB Ogrogami Oikkojot.” Candidates outlined their priorities for the future of the association and the tourism industry. Md Taslim Amin Shovon, TOAB president and election candidate, said Bangladesh’s tourism industry holds strong potential for both inbound and outbound growth. “Bangladesh's tourism potential is immense — both in terms of what we can offer the world and what our people deserve to experience beyond our borders,” he said. “If elected, my commitment is to build a stronger, more unified tourism industry that elevates inbound tourism by showcasing Bangladesh's rich heritage and natural beauty, while simultaneously empowering our outbound operators with the tools, partnerships, and policy support they need to thrive,” he added. The programme concluded with a dinner reception, allowing members, industry representatives and guests to network and discuss future collaborations.