United News of Bangladesh

Bangladesh’s banking and capital market sectors have been pushed to the brink of crisis by years of plunder, poor economic management, weak financial discipline, and the failure of regulatory institutions, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said on Wednesday. “Many successful companies and several banks are now suffering from serious capital deficits in the private sector. Non-performing loans, capital flight, and embezzlement carried out in collusion between boards and management are behind it,” he said. Speaking as the chief guest at the ‘Financial Accounting and Reporting (FAR) Summit 2026’ held at a hotel in the capital, the minister painted a stark picture of the country's financial sector and called for urgent reform through transparency and accountability. The summit was organised jointly by the Financial Reporting Council (FRC) Bangladesh, the Institute of Chartered Accountants of Bangladesh (ICAB), and the Institute of Cost and Management Accountants of Bangladesh (ICMAB), aiming to bring transformative change in corporate governance and macroeconomic stability. Khosru said the country's auditing and reporting ecosystem has nearly broken down, enabling a string of financial crimes from money laundering through banks and loan fraud using false information to the listing of fraudulent companies on the stock market. “Companies that misrepresented themselves to enter the stock market have in many cases grown into large firms. This is discouraging genuinely transparent companies from coming to the market,” he said.  

Asian stock markets mostly declined on Wednesday as rising bond yields and concerns over prolonged inflation linked to the Iran war continued to pressure investors and weaken the technology-driven market rally. Japan’s benchmark Nikkei 225 fell 1.2 percent to 59,804.41, while the yield on the country’s 10-year government bond remained near its highest level since 1997 at just under 2.8 percent. The US dollar slipped slightly against the Japanese yen, trading at 158.92 yen. Chinese markets also ended lower, with Hong Kong’s Hang Seng Index losing 0.7 percent to 25,607.67 and the Shanghai Composite Index declining 0.3 percent to 4,156.47. Australia’s S&P/ASX 200 dropped 1.3 percent, while South Korea’s Kospi lost 0.9 percent following a broad sell-off in the previous session. Taiwan’s Taiex index also edged down 0.4 percent. US futures showed little movement after Wall Street recorded losses on Tuesday. The S&P 500 fell 0.7 percent for its third consecutive decline, while the Dow Jones Industrial Average lost 0.6 percent and the Nasdaq Composite dropped 0.8 percent. Technology stocks continued to weaken after strong gains earlier driven by enthusiasm over artificial intelligence. Investors are increasingly concerned that many tech stocks have become overvalued. Market attention is now focused on chipmaker Nvidia’s upcoming quarterly earnings report, which investors believe could influence the future direction of technology stocks and the broader US market. Oil prices remained volatile amid uncertainty surrounding the Iran conflict and possible disruptions in the Strait of Hormuz, a key route for global oil shipments. US benchmark crude oil fell $1.04 to $103.11 per barrel in early Wednesday trading, while Brent crude dropped $1.11 to $110.12 per barrel. Meanwhile, rising bond yields continued to unsettle markets. The yield on the 10-year US Treasury climbed to 4.66 percent from 4.61 percent a day earlier, compared with below 4 percent before the Iran war began. Analysts say higher yields could increase borrowing costs for mortgages and major corporate investments, including AI data center projects, potentially slowing economic growth. Despite market concerns, several major US companies have continued to report stronger-than-expected earnings, supported by resilient consumer spending despite higher fuel prices and economic uncertainty.  

Bangladesh Jewellers Association (BAJUS) on Wednesday reduced the price of gold in the domestic market by Tk 2,158 per bhori, setting the new rate for 22-carat gold at Tk 2,35,963 per bhori, effective from 10 am. In a morning circular, BAJUS said the revised prices reflect a decline in the cost of tejabi (pure) gold in the local market. Under the new pricing, 21-carat gold will be sold at Tk 2,25,232 per bhori, 18-carat at Tk 1,93,039, and traditional-method gold at Tk 1,57,231 per bhori. The previous adjustment was made on May 16, when BAJUS cut prices by Tk 4,374 per bhori, bringing 22-carat gold down to Tk 2,38,121. Gold prices have been adjusted 66 times in the domestic market so far in 2026, raised on 35 occasions and reduced on 31. Meanwhile, silver prices remained unchanged. The 22-carat silver is currently priced at Tk 5,657 per bhori, while 21-carat stands at Tk 5,365, 18-carat at Tk 4,607, and traditional-method silver at Tk 3,441 per bhori. Silver prices have seen 39 adjustments this year, up 21 times and down 18 times.

A delegation from the Foreign Investors’ Chamber of Commerce & Industry (FICCI) on Tuesday met Finance Minister Amir Khosru Mahmud Chowdhury to discuss strategic priorities for the national budget for fiscal year 2026-27. Led by FICCI President Rupali Haque Chowdhury, the delegation exchanged views with the Finance Minister regarding the country’s current investment climate, prevailing macroeconomic challenges, and essential interventions required to accelerate Foreign Direct Investment (FDI) inflows under the new government. Ex-FCCI president, his wife sued in graft case by ACC in Faridpur The delegation included FICCI Senior Vice President Deepal Abeywickrema, Vice President Mohammad Iqbal Chowdhury, and other members of the chamber's Board of Directors. During the meeting, the business leaders strongly advocated for a predictable, transparent, and business-friendly policy environment. They specifically emphasised the necessity of a long-term budgetary roadmap that would allow multinational corporations and foreign investors to accurately project tax structures and execute well-informed investment decisions. Furthermore, the chamber stressed that maintaining competitive tax policies and institutional consistency is vital to strengthening global investor confidence, which would ultimately enhance Bangladesh’s competitive edge over its peer economies. Describing the meeting as a constructive platform, both sides explored avenues for closer public-private collaboration to steer sustainable economic growth and address structural bottlenecks. The FICCI leadership reaffirmed its commitment to partnering with the government to attract high-quality investments that align with the country's long-term development targets, according to a press release.

Claiming that Bangladesh's steel sector is now in the intensive care unit (ICU)), industry leaders on Tuesday strongly demanded that the government refrain from raising electricity tariffs further to prevent the widespread shutdown of manufacturing plants. They warned that if power prices are raised under the current circumstances, factories will have no choice but to slash production, with several facing imminent partial or complete closures. The demand was raised at a press conference organised by the Bangladesh Steel Manufacturers Association (BSMA) at the Economic Reporters’ Forum (ERF) auditorium in the capital. Responsible business conduct key to maintaining trade competitiveness, attracting investment: Commerce Minister Reading out a written statement, BSMA President Mohammad Jahangir Alam asserted that there will be no need to hike electricity prices if the government effectively curbs massive capacity charges paid to idle power plants and checks rampant system losses. "The domestic industry and investment landscape are passing through an exceptionally challenging phase due to the lingering economic shocks of the COVID-19 pandemic, abnormal price hikes of fuel and raw materials caused by the Russia-Ukraine war, a persistent dollar crunch, severe exchange rate volatility, and ongoing geopolitical tensions in the Middle East," he said. Compounding these woes, Jahangir said, the pace of construction work in both public and private sectors has slowed down significantly, causing a sharp decline in domestic steel demand.  Furthermore, high bank interest rates, credit limitations, gas shortages, soaring import costs, and a severe crunch in working capital have created an unsustainable environment for manufacturers, he said. The association pointed out that over the last few years, electricity tariffs for the industrial sector have escalated by nearly 30 percent, while gas prices have skyrocketed by up to 300 percent in certain categories. Any further hike in power tariffs will multiply production costs exponentially, stripping Bangladeshi industries of their global competitiveness. The BSMA leaders highlighted that most large-scale steel mills procure electricity directly from the national high-voltage grid, which eliminates any transmission, distribution, or system losses on their end. "Despite this, our factories are burdened with various unjustified fees, including hefty demand charges, excessive VAT, and strict power-factor penalties. In reality, these have become indirect methods to drive up the effective cost of electricity," the BSMA President said. To keep the vital construction-material industry afloat, the association urged the government to refrain from increasing power tariffs, reduce irrational demand charges, and lower the excessive VAT structure. They also called for a comprehensive review of the power-factor penalty policy and demanded an uninterrupted, quality power supply for industrial units. BSMA founding President Sheikh Masadul Alam Masud, Secretary General Sumon Chowdhury, and Vice President Md Rezaul Karim, among others, were present at the press conference.

In a bid to maintain stability in the foreign exchange market, Bangladesh Bank (BB) on Tuesday purchased $85 million from six commercial banks. The central bank fixed the cut-off rate for the transaction at Tk 122.75 per US dollar, according to relevant sources at Bangladesh Bank. With this latest transaction, the central bank’s total dollar purchase in the current month of May has reached $395 million. Meanwhile, the aggregate dollar purchase since the beginning of the 2025-26 fiscal year has risen to $6.06 billion. Financial analysts noted that a recent surge in remittance inflows and export earnings has positively shifted the foreign exchange supply, resulting in surplus dollar liquidity across commercial banks. The central bank is now regularly buying dollars from the market to prevent a sharp decline in the greenback's value and to rebuild the country's foreign exchange reserves. According to economists, the national economy—which had been under immense pressure for the past few years due to a severe dollar crunch, skyrocketing import bills, and depleting reserves—is now gradually moving toward stability. They attributed this relief to the increased flow of remittances through formal channels, growth in export earnings, and controlled import expenditures, all of which have significantly boosted dollar availability in the interbank market. Bangladesh Bank officials explained that the central bank steps in to purchase dollars when there is an excess supply in the market and, conversely, injects dollars into the market during a shortage. This mechanism is utilized to keep the exchange rate relatively stable. Echoing similar views, commercial bankers stated that the foreign exchange market is no longer facing the intense pressure it did previously. Many banks now possess surplus dollars beyond their immediate requirements, allowing the central bank to mop up excess liquidity. This strategy is simultaneously fortifying national reserves while mitigating the risk of a sudden crash in the dollar rate.

Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) will remain closed from May 25 to 31 in observance of Eid-ul-Azha holidays following the government's declaration of May 25 as an additional public holiday, the bourses said in a press release on Tuesday. The government's order extends the Eid-ul-Azha vacation period by one day, prompting DSE and CSE to adjust its trading calendar accordingly. However, in a notable deviation from the usual weekend schedule, both trading and official activities at the Exchange will remain fully operational on Saturday, May 23, and Sunday, May 24, as per regular office and trading hours, in compliance with the government directive. Normal trading and administrative operations are set to resume on Monday, June 1, following the extended holiday break. Market participants and investors are advised to plan their transactions accordingly ahead of the closure.

Commerce Minister Khandakar Abdul Muktadir on Tuesday said responsible business conduct is no longer optional but has become a critical prerequisite for maintaining trade competitiveness, attracting investment, and securing market access in the global economy. “Bangladesh is entering a new phase amid rapidly shifting global trade and investment dynamics,” the minister said while speaking as the chief guest at a national dialogue titled “Responsible Business Conduct for Resilient Supply Chains and Trade Competitiveness,” jointly organised by the Ministry of Commerce and United Nations Development Programme at a hotel in Dhaka. He said the country has made notable economic strides through strong export growth, industrialisation, entrepreneurship development, and resilience. He said the readymade garment sector has played a pivotal role in employment generation, poverty reduction, women's empowerment, and overall economic growth. With Bangladesh preparing to graduate from the Least Developed Country status, Muktadir stressed that the country's future competitiveness would no longer rest on production costs alone. "It will depend on sustainability, transparency, labour standards, environmental accountability, and responsible business practices," he said. The minister observed that international buyers, investors, regulators, and consumers are increasingly demanding adherence to environmental, social, and governance standards as well as due diligence across every tier of the supply chain. He said growing regulatory requirements in key international markets are directly shaping global supply arrangements. He noted that buyers now expect businesses to ensure workplace safety, efficient resource use, good governance, and public reporting on climate and sustainability commitments. Muktadir said strengthening responsible business practices across industries would build confidence among international buyers and investors while positioning Bangladesh as a credible and competitive sourcing destination. “This will improve access to high-value and emerging markets, attract quality investment, and enhance supply chain resilience.” The minister said the Ministry of Commerce recognises the importance of policy coordination and institutional strengthening on responsible business conduct. He said the government is committed to ensuring sustainable, inclusive, and responsible economic growth and that an institutional framework for responsible business conduct under the Ministry of Commerce reflects this commitment. The platform, he said, will strengthen coordination among ministries, regulators, the private sector, and development partners, while supporting policy guidance, awareness, and capacity building. Calling for a collective effort, Muktadir said the transition toward responsible and sustainable business practices cannot be achieved by any single institution. “We need to build an enabling environment where businesses of all sizes can progressively adopt responsible practices while remaining competitive in global markets.” The minister thanked UNDP and all partners for organising the event and for their continued support to sustainable and inclusive economic development in 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.