United News of Bangladesh

Japanese giant Mitsubishi Corporation (MC) has officially entered Bangladesh's manufacturing landscape by acquiring a 25% strategic equity stake in RANCON Auto Industries Limited (RAIL). The partnership, announced Wednesday night in the capital, represents the largest Japanese Foreign Direct Investment (FDI) to date in Bangladesh’s four-wheeler transport industry, said a press release. The investment transitions the relationship between the two entities from a distribution and assembly agreement to a joint ownership structure. The primary objectives of this alliance include scaling up production capacity, fortifying distribution networks, and enhancing after-sales service for local consumers, with a long-term vision to expand into regional markets. Finance Minister Amir Khosru Mahmud Chowdhury, who attended the event as the chief guest, hailed the agreement as a significant milestone under the current government. “This agreement marks the first major foreign direct investment under the current government, which will send a positive message to international investors,” the Minister said. Established in 2017, RAIL has been a key player in vehicle assembly. In June last year, the company began local production of the Mitsubishi Xpander, which has since become the top-selling family SUV in the country. The strategic infusion of capital and expertise from MC is expected to improve supply chain resilience and modernise sales and marketing functions by leveraging Mitsubishi’s global market access. Romo Rouf Chowdhury, Group Managing Director of RANCON Holdings Limited, described the alliance as a "pivotal" moment for the industry. “This landmark strategic alliance — the first of its kind in the country’s automotive sector — underscores the strength of Bangladesh–Japan trade relations,” he said. He added that the investment would facilitate technology transfer, develop a highly skilled local workforce, and increase government revenue through VAT and taxes. Hiroyuki Egami, Senior Vice President and Division COO of Mitsubishi Corporation, reaffirmed the Japanese firm’s commitment to bringing its extensive global automotive experience to the joint venture. The event was also attended by State Minister for Civil Aviation and Tourism M. Rashiduzzaman Millat and the Japanese Ambassador to Bangladesh, Saida Shinichi. Industry experts anticipate that this partnership will also improve consumer access to affordable vehicle financing and ensure the steady availability of spare parts across a strengthened nationwide network.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged Bangladesh Bank to strengthen policy support and extend key deadlines to help the readymade garment (RMG) sector cope with ongoing multidimensional challenges. A BGMEA delegation led by Director Majumder Arifur Rahman made the request during a meeting with Bangladesh Bank Deputy Governor Dr. Md. Kabir Ahmed at the central bank headquarters on Wednesday, according to a press release issued on Thursday. The association specifically called for an amendment to BRPD Circular-07/2025, seeking to extend the eligibility period for policy support for defaulted accounts from November 2025 to March 31, 2026. BGMEA representatives said the extension would enable struggling and “sick” industrial units to access necessary support and resume normal operations. They added that such measures could also help reduce non-performing loans (NPLs) in the banking sector and improve overall financial stability. The delegation further urged the central bank to issue mandatory directives to commercial banks to ensure proper implementation of the announced policy support. It noted that many eligible factories are missing out on benefits due to delays or lapses in execution by banks. The BGMEA delegation requested more time for closed factories to apply for reopening. While welcoming the government’s initiative to revive shuttered units, the association stressed the need for additional time to collect and verify accurate data from affected businesses to ensure a transparent and effective rehabilitation process. Deputy Governor Dr. Md. Kabir Ahmed assured the delegation that the central bank would consider the proposals and take appropriate steps. Former BGMEA Vice President Shahidul Islam, PR and Publicity Committee Chairman Masud Kabir, and senior officials from the Bangladesh Bank’s Banking Regulation and Policy Department (BRPD) were present.

The price of gold in Bangladesh has been reduced by Tk 3,266 per bhori, with the new rate for 22-carat gold set at Tk 246,927, according to the Bangladesh Jeweller’s Association (BAJUS). In a notice issued on Thursday morning, BAJUS said the decision to lower the price was taken following a decline in the price of pure gold in the local market and considering the overall market situation. Under the revised rates, the price of 22-carat gold has been fixed at Tk 246,927 per bhori (11.664 grams). The price of 21-carat gold has been reduced by Tk 3,149 to Tk 235,671 per bhori, while 18-carat gold has been cut by Tk 2,683 to Tk 202,020 per bhori. The price of gold under the traditional method has been lowered by Tk 2,216 to Tk 164,521 per bhori. BAJUS last adjusted gold prices on April 15, when it increased the price of 22-carat gold by Tk 2,216 per bhori to Tk 250,193. So far in 2026, gold prices in the country have been adjusted 56 times, including 32 increases and 24 decreases. Alongside gold, the price of silver has also been reduced in the local market. The price of 22-carat silver has been cut by Tk 350 to Tk 5,715 per bhori. The price of 21-carat silver has been set at Tk 5,424 per bhori, while 18-carat silver now costs Tk 4,666 per bhori. Silver under the traditional method has been fixed at Tk 3,499 per bhori. In 2026 so far, silver prices have been adjusted 35 times in the domestic market, with 19 increases and 16 decreases.

The ongoing energy crisis in Bangladesh has sparked fresh concerns within the Ready-Made Garment (RMG) sector, as international buyers are reportedly shifting their orders to competing nations like India. Anwar-ul Alam Chowdhury (Parvez), President of the Bangladesh Chamber of Industries (BCI), raised the alarm during a pre-budget discussion for the fiscal year 2026-27, held on Wednesday at the National Board of Revenue (NBR) building in Agargaon. Parvez highlighted a growing anxiety among global retailers regarding Bangladesh’s energy stability. Sharing insights from recent discussions with buyers, he noted that many are hesitant to place new orders due to uncertainties surrounding the electricity supply. "Major buying houses are already signaling a reduction in orders for Bangladesh," the BCI chief stated. He added that order volumes for the upcoming July-August season have dropped significantly below expectations, with the pace of new bookings slowing down. The energy supply chain has been further strained by the ongoing conflict in the Middle East, which has a direct impact on Bangladesh's export-oriented industries. Stakeholders believe that the fear of production disruptions and the potential inability to meet lead times are the primary factors driving buyers toward alternative markets. To mitigate the crisis and maintain global competitiveness, the BCI President proposed several policy interventions to the government. He urged the NBR to reduce the source tax on export earnings from 1.0 percent to 0.5 percent, reconsider the 1.0 percent minimum turnover tax, describing it as a burden on businesses during these challenging times. While the RMG sector remains the backbone of Bangladesh’s export earnings, it is currently facing a "perfect storm" of energy shortages, global geopolitical instability, and rising competition from regional neighbors. Analysts warned that unless the government ensures a stable energy supply and provides business-friendly policy support, Bangladesh’s dominant position in the global apparel market could be significantly weakened.

Dhaka Stock Exchange (DSE) bounced back on Wednesday as turnover surpassed the Tk 1,000 crore threshold for the first time in more than two months, with prices rising for most listed companies. Total turnover on the DSE reached Tk 1,056 crore during the day's session. The last time trading crossed that level was on February 17, when Tk 1,222 crore changed hands, signalling a prolonged dry spell that investors hope is now behind them. Advancers dominated the market, with 213 companies posting gains against 121 declines, while 57 remained unchanged. Dhaka stocks rebound in early trade after two-day losing streak All three key indices finished in the green. The benchmark DSEX rose 41 points, the Shariah-based DSES gained 3 points, and the blue-chip DS30 index climbed 20 points. In the block market, shares worth Tk 22 crore traded across 39 companies. Dominage Steel Building Systems Ltd led block transactions with Tk 7 crore in sales. Desh Garments Ltd topped the gainers' board with a rise of nearly 10 percent, while Shepherd Industries PLC slid nearly 8 percent to finish at the bottom. The rally extended to the port city, where the Chittagong Stock Exchange (CSE) also closed higher. The CASPI index advanced 60 points, with 110 companies gaining ground against 91 decliners and 29 unchanged. Turnover at the CSE stood at over Tk 17 crore, compared to Tk 33 crore the previous session. Midas Financing PLC led the gainers with a 10 percent rise, while Navana CNG Ltd shed 10 percent to close at the bottom.

Bangladesh’s savings certificate sector is facing a silent crisis as rising inflation and economic uncertainty have driven a surge in encashment, outpacing new investments for the third consecutive fiscal year. According to the latest data from the Department of National Savings, the net investment in savings certificates turned negative by approximately Tk 555 crore during the first eight months (July–February) of the current fiscal year, FY2025-26. The decline was particularly sharp in January and February. In February, gross sales reached Tk 6,406 crore, but encashment (both matured and premature) stood at Tk 7,571 crore, resulting in a net negative investment of Tk 1,165 crore. This followed a January deficit of Tk 1,851 crore, where sales of Tk 7,161 crore were offset by Tk 9,012 crore in withdrawals. Bangladesh cuts source tax on savings certificates for small investors Inflation and high cost of living: Market analysts point to persistent high inflation as the primary driver behind this trend. With the cost of essential goods rising significantly, many low and middle-income families are being forced to break into their previous savings to meet daily expenses. Furthermore, the government’s decision to cap interest rates at a maximum of 11.98 percent at the start of the fiscal year has made these instruments less attractive. Meanwhile, rising yields on government treasury bills and bonds have prompted institutional and individual investors to shift their capital toward those platforms. Impact on budget financing: The negative growth in the savings sector has placed additional pressure on the government’s budget deficit financing. Since net investment in savings certificates is treated as a government loan, the shortfall has forced the state to rely more heavily on bank borrowing. While the government set a bank borrowing target of Tk 1.04 lakh crore for the FY2025-26, data shows that borrowing has already reached Tk 1.06 lakh crore with several months remaining in the fiscal cycle. Historical context: The sector’s struggle is not new. In the FY2024-25, net investment was negative by nearly Tk 6,000 crore, despite an initial target to borrow Tk 15,400 crore from the sector. This followed an even steeper decline in the FY2023-24, when net investment plummeted to a negative Tk 21,124 crore. Economists warn that a prolonged negative trend in savings could weaken the country's investment base and hinder overall economic growth in the long run.

Credit card transactions by Bangladeshi nationals abroad and foreign nationals within Bangladesh witnessed a notable decline in February compared to the previous month, according to the latest report from the Bangladesh Bank. The central bank’s data shows that Bangladeshi cardholders spent Tk 377 crore abroad in February, a Tk 86 crore drop from the Tk 463 crore recorded in January. Among international destinations, the United States remained the top location for spending, accounting for Tk 54.03 crore. This was followed by Thailand (Tk 50.04 crore), Singapore (Tk 32.04 crore), and the United Kingdom (Tk 30.04 crore). Bangladesh Bank buys $60 million from banks to maintain exchange rate stability Other significant spending was recorded in Saudi Arabia, Tk 28 crore, India, Tk 25 crore, Malaysia, Tk 23 crore, and the Netherlands, Tk 17 crore, while Australia, the UAE, Ireland, and other countries accounted for the remainder. A similar downward trend was observed among foreign nationals using credit cards within Bangladesh. Spending by foreigners dropped to Tk 266.06 crore in February, down from Tk 344.04 crore in January—a Tk 78 crore decrease in a single month. US citizens were the highest spenders in Bangladesh, totaling Tk 86.09 crore. They were followed by citizens of Mozambique, Tk 35 crore, the United Kingdom, Tk 24 crore, and Australia, Tk 9.06 crore. Domestic credit card usage also saw a contraction. Transactions within the country fell by Tk 298 crore, sliding from Tk 3,720 crore in January to Tk 3,422 crore in February. Overall, the central bank report highlights a clear downward trajectory in credit card activity across all sectors during the month of February.

Dhaka Chamber of Commerce & Industry (DCCI) on Wednesday submitted a set of proposals for FY2026-27 national budget to NBR, calling for tax relief, automation, and wide-ranging reforms to improve the business climate and strengthen revenue mobilisation. The proposals were formally presented at the NBR in the morning as part of the chamber’s recommendations ahead of the upcoming national budget. The chamber prepared the recommendations focusing on strengthening revenue collection capacity, creating a business-supportive environment, lowering the tax burden, and promoting investment in productive sectors to boost employment. DCCI said it submitted a total of 54 proposals for inclusion in the FY2026-27 national budget, highlighting 16 key recommendations covering income tax, VAT, customs, automation of tax administration, and measures to facilitate businesses and investment. The chamber emphasised expansion of the tax base and simplification of tax structure as core objectives. It proposed business-friendly tax policies, automation of tax administration, reforms in value-added tax (VAT) systems, protection for local industries and simplification of import duty and tariff structures. Among the major income tax proposals, DCCI recommended increasing the tax-free income threshold and restructuring tax slabs. Under the proposal, income up to Tk 500,000 would remain tax-free, followed by 5% tax on the next Tk 200,000, 10% on the next Tk 300,000, 15% on the next Tk 400,000, 20% on the next Tk 500,000, and 25% on the remaining income. The chamber argued that the change would encourage new taxpayers to enter the tax net and help expand the tax base. It also said the revised structure would ease the burden on low-income and lower-middle-income earners and stimulate economic activity. DCCI proposed reducing the tax rate for non-listed companies from 27.5% to 25%, particularly for firms complying with banking transactions and other compliance requirements. It also recommended maintaining strict revenue reporting conditions, requiring all receipts to be received through banking channels or digital payments. The chamber noted that while only about 350 companies are listed, the number of non-listed companies is significantly higher, and reducing the tax rate would encourage business expansion and motivate firms to move toward listing. It said Bangladesh’s tax-GDP ratio remained low at 6.7% in FY2025 and a large portion of economic activity remained outside the formal system. To address this, DCCI proposed automation of tax administration, data integration and digital filing systems. It suggested integrating databases including national ID, banking, trade licence, electricity and gas connections, vehicle registration, mobile financial services, and land ownership through a central API to automatically identify potential taxpayers and bring them under the tax net. DCCI recommended introducing an automated e-corporate tax return system, citing that corporate tax filing currently involves manual processes that are complex, time-consuming and prone to errors. The proposed platform would allow online filing, appeals and refunds, and enable automated bank transfers through BEFTN for tax refunds, reducing time and compliance costs. The chamber proposed reducing withholding tax on interest from securities to 5% and gradually exempting it entirely. It also recommended allowing taxpayers to adjust or claim refunds where excess tax is deducted. Similarly, DCCI proposed reducing withholding tax on interest from corporate deposits from 20% to 10%, with provisions for adjustment against final tax liability. It said the move would ease pressure on companies and support investment, particularly for small businesses. DCCI recommended restoring provisions similar to the Income Tax Ordinance 1984 to allow adjustment of business losses against other income, stating that current provisions increase tax burden on businesses. The chamber also proposed gradual abolition of surcharge on net wealth over three to five years instead of immediate withdrawal, arguing this would reduce “tax on tax” and ensure fairness for taxpayers with high assets but low income. The chamber proposed reducing minimum tax on turnover from 1% to 0.25% for individuals and 0.60% for entities other than individuals. It argued that minimum tax based on turnover increases business costs and should eventually be abolished so tax is levied only on profits. On VAT issues, DCCI proposed withdrawing the increase in advance tax on commercial imports from 5% to 7.5% and maintaining it at 5%, with gradual removal in future. The chamber said the higher advance tax increases working capital requirements, affects cash flow and ultimately raises consumer prices. DCCI also recommended abolishing the Tk 50,000 cap on VAT refunds and allowing full refund of negative net amounts through automated systems. It said removing the ceiling would increase working capital and support production and business expansion. The chamber proposed complete online VAT processes, including appeals, credit refunds and risk management, through the e-return portal. It also recommended a single-step VAT refund system to reduce administrative delays and improve cash flow. DCCI suggested introducing a national mobile application for VAT collection, allowing sellers to generate VAT receipts in real time using BIN numbers. The data would automatically be transmitted to NBR systems and shared with buyers via mobile or email. The chamber said such an app would increase transparency, reduce tax evasion and boost revenue collection. DCCI recommended automating customs refunds by transferring refund amounts directly to bank accounts through BEFTN or EFT instead of manual cheque payments. It said automation would reduce harassment and improve service efficiency. The chamber also proposed uniform customs valuation for stearic acid and similar chemicals instead of country-specific valuation rates. It said differing valuation based on source country creates market distortion and unfair competition. DCCI said its proposals aim to expand the tax base, improve compliance, reduce business costs, encourage investment, enhance automation, and strengthen revenue mobilisation. The chamber expects the recommendations, if implemented, to support economic growth, improve competitiveness and create employment in the upcoming fiscal year.

Speakers at a high-level workshop on today (Tuesday) emphasized the critical role of robust Shariah governance in ensuring transparency, accountability, and public trust within the Islamic banking sector. The remarks were made during the opening session of a three-day special training workshop titled "Shariah Governance for Members of Shariah Supervisory Committees," held at the Bangladesh Institute of Bank Management (BIBM) in the capital. The program is being jointly organized by BIBM and the Bangladesh Bank. Dr. Md. Kabir Ahmed, Deputy Governor of Bangladesh Bank, inaugurated the workshop as the chief guest. He stated that effective Shariah governance is essential for upholding public confidence in the Islamic banking system. Shariah compliance in banking more than a formality, it’s a matter of trust: BIBM DG He further noted that Shariah-based supervision plays a pivotal role in ensuring accountability across all banking operations. Dr. Abu Bakar Rafique, Chairman of the Shariah Advisory Board of Bangladesh Bank, attended as a special guest. He stressed the need for a strong institutional framework to guarantee transparency in Islamic financial activities. Supporting this view, Mohammed Abdul Mannan, Chairman of the Executive Committee of the Central Shariah Board for Islamic Banks of Bangladesh (CSBIB), highlighted that as the country's Islamic banking sector continues to expand rapidly, the need for effective Shariah oversight has become more crucial than ever. The inaugural session was presided over by Dr. Md. Ezazul Islam, Director General of BIBM. In his address, he reaffirmed BIBM’s commitment to enhancing good governance and professional expertise in the banking sector through regular training, research, and knowledge-sharing initiatives. The workshop, which runs from April 21 to April 23, 2026, is being attended by members of Shariah Supervisory Committees from various Islamic banks and financial institutions across the country. The sessions will focus on Shariah governance frameworks, regulatory policies, and global best practices. Earlier, Dr. Mohammed Tazul Islam, Professor and Director at BIBM, also spoke in the opening event.

Global stock markets moved higher on Tuesday, with Wall Street also set to open stronger, while oil prices remained mostly unchanged amid ongoing uncertainty over talks between the United States and Iran. Futures for the S&P 500 rose 0.4% before trading began, while Dow Jones futures gained 0.6%. Nasdaq futures also edged up 0.4%. In the oil market, US benchmark crude slipped 14 cents to $87.28 per barrel. Brent crude, the international standard, fell 47 cents to $95.01 per barrel. The conflict involving Iran has disrupted oil shipments through the Strait of Hormuz, a key route that carries about one-fifth of the world’s oil supply daily, pushing energy prices higher in recent weeks. US President Donald Trump has called on Iran to allow safe passage through the strait and has imposed a blockade on Iranian ports. However, Iran has taken a firm stance, refusing to negotiate under pressure. Iran’s chief negotiator and parliamentary speaker, Mohammed Bagher Qalibaf, said in a social media post that Tehran would not engage in talks “under the shadow of threats.” Despite this, Trump said he still plans to send a delegation led by Vice President JD Vance to Islamabad for discussions. However, Iran has indicated it will not participate unless the US softens its position. Trump also signalled that extending the current ceasefire, which expires Wednesday, is “highly unlikely.” Analysts say the situation remains fragile, with both sides facing pressure to reach an agreement before the truce ends. Even so, oil prices remain below earlier highs, when Brent crude had surged to $119 per barrel at the peak of tensions. The S&P 500 is also still trading above its pre-conflict level. In corporate news, Apple shares were little changed after the company announced that CEO Tim Cook will step down on Sept. 1, handing over the role to John Ternus. Cook will continue as executive chairman after leading the company for 15 years. Shares of UnitedHealth Group jumped more than 7% in premarket trading after the company reported better-than-expected first-quarter earnings and raised its full-year profit forecast. Investors are also watching developments in Washington, where Kevin Warsh, Trump’s nominee for Federal Reserve chair, is set to appear before the Senate Banking Committee. He is expected to face tough questions, particularly from Democrats over his financial disclosures. In Europe, Germany’s DAX rose 0.6%, while France’s CAC 40 added 0.2%. Britain’s FTSE 100 remained unchanged. Asian markets also closed higher. Japan’s Nikkei 225 climbed 0.9%, supported by gains in technology stocks. South Korea’s Kospi surged 2.7%, while Taiwan’s Taiex rose 1.8%. Hong Kong’s Hang Seng index gained 0.5% and Shanghai’s Composite index edged up 0.1%. However, Australia’s S&P/ASX 200 slipped slightly by less than 0.1%.