United News of Bangladesh

Twenty-six export-oriented garment factory owners on Saturday demanded a high-level independent investigation into what they alleged to be large-scale financial irregularities at Premier Bank PLC’s Narayanganj branch, including LC fraud and the creation of fictitious loans. Speaking at a press conference at the Economic Reporters' Forum (ERF) office in the capital, the business owners accused bank officials of siphoning off funds, illegal foreign currency transactions, and "collusion" between the branch and head office. In a written speech, Arifur Rahman, managing director of Doyes Land Apparels Ltd, claimed that funds were siphoned using his company’s name without his knowledge. "Bank officials, in collusion with the head office and the then chairman, carried out these irregularities without our consent," he alleged. The businesses claimed that the irregularities date back to 2017, involving forged sales contracts and back-to-back letters of credit (LCs) created without actual raw material imports. They further alleged that they were forced to purchase US dollars at rates Tk 12–15 higher than the market rate, creating massive financial liabilities. The garment owners expressed frustration with Bangladesh Bank, stating they had submitted 22 letters seeking intervention but received no remedy. "Bangladesh Bank conducts annual inspections. Then how did these issues go unnoticed?" questioned Dil Mohammad Imran, managing director of Knit Reflex Ltd. The press conference took a sombre turn as owners linked the "financial and psychological pressure" from the bank to the deaths of two managing directors. They claimed Md Hasibuddin Mia of Total Fashion died in December 2024 after being pressured to sign documents, while the MD of West Apparel suffered a fatal heart attack in September 2025 following "false allegations" filed with the Anti-Corruption Commission. The affected entrepreneurs warned that the suspension of banking operations for 23 of the companies now threatens the livelihoods of nearly 25,000 workers. The group demanded a neutral investigation involving the Ministry of Finance and Bangladesh Bank, alongside a full audit by a reputable firm. They noted that a formal application was submitted to the Bangladesh Bank governor on April 6 seeking immediate intervention to save their businesses and protect export earnings.

Gold prices in Bangladesh fell by Tk 6,589 per bhori across two consecutive reductions within a single day, with the Bangladesh Jewellers Association (BAJUS) setting the new price of 22-carat gold at Tk 2,38,121 per bhori on Saturday. In a statement issued Saturday morning, BAJUS announced a reduction of Tk 4,374 per bhori for 22-carat gold. The day before, on Friday morning, the association had already cut prices by Tk 2,215 per bhori, resulting in two successive reductions in under 24 hours. Under the new rates, the price of the finest 22-carat gold is Tk 2,38,121 per bhori after a cut of Tk 4,374. The 21-carat rate was reduced by Tk 4,141 to Tk 2,27,331 per bhori, while 18-carat gold was lowered by Tk 3,558 to Tk 1,94,847 per bhori. The traditional-method gold price was reduced by Tk 2,916, now set at Tk 1,58,689 per bhori. Gold prices in Bangladesh have been adjusted 65 times so far this year, with rates raised on 35 occasions and reduced on 30 others. Along with gold, silver prices were also revised downward. The price of 22-carat silver was cut by Tk 117 to Tk 5,657 per bhori. The 21-carat silver rate was reduced by Tk 175 to Tk 5,365, while 18-carat silver dropped by Tk 117 to Tk 4,607 per bhori. Traditional-method silver was also lowered by Tk 117 to Tk 3,441 per bhori. Silver prices have undergone 39 adjustments this year, with 21 increases and 18 reductions. The domestic price cuts reflect mounting pressure from the global market. According to the World Gold Council, spot gold prices fell nearly 3 percent on Saturday, while silver declined by more than 10 percent. Gold has now lost 2.26 percent of its value over the past 30 days, pointing to a sustained downward trend in international markets.

Hossain Zillur Rahman, former adviser to the caretaker government, on Saturday warned that the ongoing downfall of the economy cannot be arrested unless the deep-seated crisis in the banking sector is effectively resolved. He made the observations while speaking as the chief guest at a seminar titled "Disaster in the Country's Banking Sector; Context of Islamic Banking Sector: Impact on National Economy and Way Forward." Organized under the banner of the ‘Bank Customer Forum’, the seminar was held at the CIRDAP auditorium in the capital, aiming to bring together Islamic Bank customers and sector insiders. SACIN begins journey to advance circular economy across Asia in Dhaka Emphasizing that political will is crucial for a turnaround, Dr. Zillur noted that political influence heavily dictates economic decisions. He strictly questioned why new provisions are being introduced into laws to facilitate the return of those who are responsible for creating the crisis in the finance sector. During the discussion, some speakers went as far as to propose that the photographs of those who plundered the banking sector should be publicly displayed in museums. Former Vice President of FBCCI Abul Kashem Haider delivered the welcome address at the event, while Mizanur Rahman, a researcher, presented the keynote paper. In his keynote speech, Hossain Zillur Rahman stated that while opinions vary regarding the current state of the economy, there is an absolute consensus on six core challenges that demand sustainable solutions. These are a major disaster has unfolded in the economy, corrupt policy-making processes have accelerated the economic crisis, which continues unabated, depositors are silently enduring immense suffering, the economy remains stagnant; its wheels have stalled, investments have dried up, and unemployment is on the rise, ongoing national transition presents a vital opportunity to solve this deep-rooted crisis, and a sustainable solution is urgently required, one that must be held to the highest standards of morality. Dr. Zillur highlighted that many citizens are currently unable to withdraw their deposited money from banks, a critical issue that must be addressed immediately to ensure consumer stability. While noting that Bangladesh Bank is currently working on the issue, he stressed the need to monitor whether the regulator can maintain its moral stance. For this to happen, the autonomy of Bangladesh Bank is absolutely essential, he added. The economist further warned that failure to tackle the rising unemployment problem would cause social unrest to spill over into other sectors. He called for timely, courageous, and sustainable decisions executed with high professionalism and capability. Urgent Call for Political Will and Reforms: Participating in the discussion, Faruq Mainuddin, former managing director of Trust Bank, asserted that the banking sector cannot be fixed without genuine political commitment. He demanded strict measures, adding that banks must segregate the losses incurred from institutional looting and move forward with a fresh balance sheet. Badiul Alam Majumdar, Secretary of Citizens for Good Governance (Sujaon), described the banking sector as the primary engine of the national economy. "When looting occurs in this sector, the entire economy collapses, which is exactly what we are witnessing today," Majumdar said. "The revelations surrounding hostile bank takeovers are shocking enough to inspire thriller movies. Even the current President was once the vice-chairman of a forcibly taken-over bank." Sharing his personal grievance as an affected depositor, the Sujon secretary noted that long queues of citizens waiting to withdraw money have now become common. He demanded exemplary punishment for the financial fraudsters. Majumdar also emphasized the need to continue the bank restructuring process, reduce reliance on physical cash, and immediately repeal the newly introduced controversial clauses in the Bank Resolution Act. Several professionals and clients of Islamic banks also spoke at the seminar. They alleged that Islamic Bank Bangladesh PLC and Social Islami Bank were forcibly taken over through orchestrated political decisions, pointing out that an enabling environment for the takeover was prepared well in advance while regulators remained silent. The speakers questioned the legal loophole that allows an entity holding a mere 2 percent stake to take over an entire bank. They also demanded an official government statement regarding the alleged controversial role played by state intelligence agencies during those takeovers. Warning against any further destabilization, the speakers declared that if Islami Bank faces another crisis, it will never recover, and this time, the depositors themselves will build a resistance to protect their interests.

Economists, trade experts and government officials on Saturday called for expanding the Dhaka Chamber of Commerce and Industry's newly launched Economic Position Index (EPI) beyond Dhaka to make it a nationally effective policy tool, while stressing the urgency of addressing high inflation, sluggish investment and LDC graduation risks facing Bangladesh's economy. Speaking as discussants at a seminar titled “Economic Position Index (EPI): Quarterly Macroeconomic State of Dhaka” held at the DCCI Auditorium in the capital chamber President Taskeen Ahmed said Bangladesh's economy is currently navigating a challenging period marked by high inflation, pressure on foreign exchange reserves, sluggish investment, energy uncertainty, rising manufacturing costs and declining employment opportunities. He noted that conventional macroeconomic indicators are failing to capture real-time conditions and short-term changes, limiting effective policy response. Policy Research Institute of Bangladesh (PRI) Chairman Dr Zaidi Sattar said while the research was conducted focusing on Dhaka, its acceptability and effectiveness would increase significantly if expanded nationwide. Such an index would help entrepreneurs assess the prevailing business climate and take appropriate decisions accordingly, he added. Nesar Ahmed, International Trade Expert (Former Additional Secretary), Support to Sustainable Graduation Project (SSGP), warned that Bangladesh exports its highest volume of goods to European markets under duty-free facilities but risks losing these preferential arrangements following its graduation from the least developed country category. He said the CMSME sector faces particular exposure and stressed there is no alternative to reducing the cost of doing business and ensuring supportive business policies to overcome the challenge. Additional Secretary Shibir Bicitro Barua of the Ministry of Commerce's IIT Wing identified high inflation, negative investment trends and fragility in the banking and financial sectors as the country's major economic challenges at present. He informed the seminar that the Ministry of Commerce has initiated necessary reforms to the Import Policy Order, expected to be finalised within the next few months. Dhaka University Professor Dr Mizanur Rahman observed that expenditures in both the public and private sectors have in recent years outpaced income levels, while sluggish investment growth has slowed overall economic activity. He emphasised the necessity of institutional reforms, particularly strengthening the capacity of financial sector institutions. Ministry of Foreign Affairs Director General for International Trade, Investment and Technology Dr Syed Muntasir Mamun said Bangladesh should rely more on its capital market for long-term financing rather than depending heavily on the banking sector. He said the capital market remains weak and that there is also an absence of the necessary mindset to increase reliance on it. Bangladesh Investment Development Authority (BIDA) former Director General Md Ariful Hoque said sector-specific information plays an effective role in policymaking, institutional reform and the provision of incentives. Bangladesh Bank Chief Economist Professor Dr Akhand Mohammad Akhtar Hossain said there is no alternative to foreign direct investment for accelerating economic growth, an area where Bangladesh continues to lag behind. Senior Private Sector Specialist at the International Finance Corporation (IFC) of the World Bank Group, Miah Rahmat Ali, urged the government to step forward with necessary policy and financial support for entrepreneurs to tackle global economic instability caused by wars and climate change. Former DCCI Senior Vice President Alhaj Abdus Salam and former Director M Bashirullah Bhuiyan also spoke during the open floor discussion. DCCI Senior Vice President Razeev H Chowdhury, Vice President Md Salem Sulaiman, members of the Board of Directors and representatives from the public and private sectors were present on the occasion.

Commerce Minister Khandakar Abdul Muktadir on Saturday said Bangladesh’s readymade garment (RMG) and textile industry must prioritise sustainable production, innovation, research and product diversification to maintain its long-term global competitiveness. “Sustainability is no longer just a slogan; it is now an essential condition for the industry’s survival and future growth,” Muktadir said while addressing the Grand Launching Event of Textile Innovation Exchange at a hotel. The minister stressed the need for ensuring efficient use of electricity, gas and water through energy-saving measures, water recycling, circular production systems and improved management practices. Muktadir said although the country’s apparel industry has achieved remarkable success over the past decades, exports still remain heavily dependent on a limited range of products. “It will be difficult to stay ahead in global competition unless we move quickly into high-value-added products such as sportswear, man-made fibre-based garments and technical textiles.” He also said Bangladesh must become more proactive in diversifying products and exploring new export destinations to remain competitive in the European Union market and tackle potential challenges after the country’s graduation from the least developed country (LDC) status. He also underscored the importance of research, design development, skills enhancement and the adoption of modern technologies to take the industry to new heights. Highlighting the textile sector’s contribution to Bangladesh’s economic development, the minister said the industry has been a major driving force behind industrialisation and export growth by generating large-scale employment with relatively low investment. “With proper planning and innovation, the sector still has vast untapped potential.” Referring to the government’s plan to utilise closed industrial units, Muktadir said no funds would be wasted on reviving inefficient factories by retaining outdated machinery. Instead, he said, industry-specific solutions would be adopted, including developing industrial parks, attracting fresh investment through public-private partnerships (PPP) and leasing arrangements. He said decisions in this regard would be taken in consultation with experienced private-sector entrepreneurs. The minister also said promising sectors such as leather, light engineering and shipbuilding would be revitalised through modern technology, skills development and international cooperation. Welcoming the Textile Innovation Exchange initiative, Muktadir said stronger collaboration between industry and academia, along with the exchange of experiences among entrepreneurs, would help make Bangladesh’s textile sector more modern, environmentally friendly and competitive. The minister later inaugurated the Textile Innovation Exchange platform and visited different stalls at the event.

Dhaka Chamber of Commerce and Industry (DCCI) on Saturday unveiled its Economic Position Index (EPI) for the second quarter of FY2026 (October–December 2025), revealing that Dhaka's economy recorded a moderate overall score of 0.50, reflecting visible advancement but persistent structural weakness particularly in the manufacturing sector. The index was presented by DCCI Acting Secretary General Dr AKM Asaduzzaman Patwary at the DCCI auditorium in the capital. The EPI, calculated as the geometric mean of three sectoral scores, showed a sharp divergence across sectors. Agriculture topped the index with a high score of 0.80, driven by significant growth in crop and fish production, though livestock output recorded a marginal 4.8 percent decline due to seasonal factors. The services sector scored 0.47, reflecting moderate improvement, while manufacturing registered a low score of 0.33, indicating severely weak industrial activity. “Moderate improvement indicates a visible advancement in economic activities in Dhaka with no sign of heavy stagnation,” the report stated. “The economy heads towards a positive trend in the last quarter of 2025.” However, DCCI's strategic assessment struck a cautionary note, describing the economy as “consumption-led rather than production-led” and “stable on the surface but deeply imbalanced underneath.” The index, developed by DCCI as a quarterly economic monitoring tool, draws on a survey of 762 respondents, 330 from manufacturing and 432 from the services sector, across selected industries in Dhaka district, which contributes 46 percent to Bangladesh's GDP. The survey was conducted between January 11 and February 4, 2026, and covered Q1 (July–September FY2026) and Q2 (October–December FY2026) data. Sectors assessed include agriculture (crops, fisheries and livestock), manufacturing (RMG, textiles, food, pharmaceuticals, leather and others) and services (wholesale trade, real estate, land transport, health and banking). Sub-sector weights were assigned based on gross output and gross value added shares aligned with FY2025 GDP contribution. The report catalogued a range of recurring sectoral bottlenecks. Manufacturing faces energy shortages and unpredictable tariffs, a severe letter of credit liquidity crisis, a 15 percent VAT described as regressive, port-level lead-time delays and widespread demands for unofficial payments. Agriculture grapples with post-harvest losses from inadequate cold-chain infrastructure and a lack of irrigation access in northern districts. The services sector is burdened by record inflation dampening consumer demand, rising operational costs and systemic exclusion of small businesses from formal credit. DCCI called for a suite of targeted interventions. For manufacturing, it recommended an immediate launch of MSME loan facilities at nine percent or below, uninterrupted gas and power supply to industrial zones, a temporary reduction of VAT to between five and ten percent to boost export competitiveness, and customs fast-track measures at ports. For agriculture, it urged the development of a cold-chain network, irrigation scale-up in northern districts and real-time digitisation of field-level reporting under the Department of Livestock Services and Department of Fisheries. For services, it proposed a one-stop digital licensing hub to eliminate unofficial fees, anti-syndicate market monitoring and low-interest, collateral-free credit for small businesses. The index is also intended to inform Bangladesh Bank's monetary policy stance, quarterly fiscal adjustments and periodic revision of industrial policy, according to DCCI. DCCI positioned the EPI as a significant addition to Bangladesh's macroeconomic toolkit, noting that existing instruments such as GDP and the Quantum Index of Industrial Production fail to provide real-time private-sector sentiment or capture short-term fluctuations and seasonality. The chamber said the index would be published every quarter to track evolving economic momentum, particularly in the context of Bangladesh's LDC graduation preparations.

BDDL Properties Ltd celebrated its 24th founding anniversary through a daylong programme titled “Jug Jugantore,” reaffirming its commitment to national skills development, human resource advancement and sustainable social progress. The event, held on May 13 at Siam Agro and Training Institute at Keraniganj on the outskirts of the capital, brought together distinguished guests from different sectors, including academics, government officials, development professionals, business leaders, students and employees of the organisation. The programme began with recitation from the Holy Quran, followed by presentations highlighting the activities of BDDL’s affiliated organisations, including Skills Academy BD, bk IT Institute, Shukrishi Partner Program, BK Foundation and Dayal Nagar Baharunnessa Public Library. As part of the event, certificates were distributed among over 100 students who completed various courses under the Bangladesh National Qualifications Framework, while several new market-oriented training courses were also inaugurated. Managing Director of BDDL Properties MA Baten Khan said the company’s mission extends beyond constructing buildings to building people’s dreams, trust and a secure future.  

Net Foreign Direct Investment (FDI) inflows into Bangladesh surged by 39.36 percent in 2025, signaling a strong recovery and growing investor confidence despite global economic challenges and domestic transitions. According to the latest FDI survey by the Bangladesh Bank, net FDI inflows rose to $1.77 billion in 2025, up from $1.27 billion recorded in 2024. The Bangladesh Investment Development Authority (BIDA) shared the data on Thursday (May 14). BIDA highlighted that reinvested earnings and inter-company loans were the primary drivers behind this notable growth. Reinvested skyrocketed by 318.25 percent, reaching $434.10 million in 2025, compared to $103.79 million in 2024. Inter-company loans increased by 25.68 percent, rising to $781.68 million from $621.96 million in the previous year. Witnessed a modest growth of 1.84 percent, totaling $554.64 million. This upward trend comes at a time when global greenfield project announcements declined by 16 percent in 2025. BIDA noted that Bangladesh’s ability to attract higher FDI despite foreign exchange pressures, global shocks, and domestic uncertainties reflects a resilient investment climate. It shows a positive signal amid challenges. Commenting on the development, BIDA Executive Chairman Ashik Chowdhury stated that the 39.36 percent growth in net FDI is a highly positive indicator, especially since developing economies have felt the brunt of a global slowdown in new investment projects. "While the investment volume is still below the country's actual potential, this growth is significant in the post-political transition period," he said. The global situation remains uncertain, but Bangladesh is intensifying its preparations to become more competitive in attracting larger investments in the future.

Bangladesh Bank (BB) has relaxed the limits for single borrower and large loan exposures to facilitate international trade finance for businesses and industries. According to a recent circular issued by the central bank, the previous restriction limiting aggregate principal exposure (funded and non-funded) to a single person, counterparty, or group at 15 percent of a bank’s capital has been postponed until June 30, 2028. Until that date, the exposure limit has been increased to 25 percent of the bank's capital. The central bank has also introduced a reduced conversion factor for non-funded exposure. A conversion factor of 0.25 (25 percent) will now be applied to non-funded exposure, down from the previous 0.50 (50 percent). This reduced factor will also be used to determine a bank's Large Loan Portfolio Ceiling. The relaxation on the conversion factor will remain in effect until June 30, 2027. Following this period, banks are required to gradually increase the factor as follows: To 0.30 (30 percent) by December 31, 2027. To 0.40 (40 percent) by December 31, 2028. To 0.50 (50 percent) by December 31, 2029. From January 1, 2030, the original regulations will be fully reinstated. Furthermore, the central bank has revised the Large Loan Portfolio Ceiling based on a bank's percentage of classified loans. Under the new guidelines, banks with a classified loan ratio of 10 percent or less can maintain a large loan portfolio up to 50 percent of their total loans and advances. For banks where classified loans exceed 30 percent, this ceiling is restricted to 30 percent. However, the directive maintains that a bank's aggregate large loan exposure must not exceed 600 percent of its capital at any given time. These replacement clauses regarding portfolio ceilings will remain effective until December 31, 2027. The BB stated that these directives, issued under the Bank Company Act, 1991, come into force with immediate effect, while other instructions from the original 2022 circular remain unchanged.

The Shariah compliance government bonds ‘Sukuk’ gets popularity among the investors in Bangladesh as 12.30 times oversubscribed for its 8th draw. The auction for 8th Bangladesh Government Investment Sukuk (CIBRR-1), aimed at constructing important bridges on rural roads, witnessed this massive response today (Thursday). The Debt Management Department of Bangladesh Bank organised the auction, which offered a 7-year Shariah-compliant 'Ijarah Sukuk' with a face value of Tk 5,900 crore at an annual rental rate of 10.40 percent. According to Bangladesh Bank, Shariah-based banks, financial institutions, Islamic windows of conventional banks, individual investors, and provident funds submitted bids totaling Tk 72,597.94 crore. Due to the overwhelming demand, the Sukuk was allocated among investors on a ratio basis. Notably, this marks the first time the auction was conducted using Bangladesh Bank’s in-house Shariah Securities Module (SSM) software. The issuance of this Sukuk provides Shariah-compliant banks and financial institutions with a vital tool for liquidity management. Key highlights include-Banks and financial institutions can use these Sukuks to maintain their Statutory Liquidity Reserve (SLR), Islamic banks and conventional banks with Islamic windows can access the ‘Islamic Banks Liquidity Facility (IBLF)’ from Bangladesh Bank by using the Sukuk as collateral and starting May 14, 2026, individual and institutional investors can buy or sell these Sukuks in the secondary market. Under the individual investor, provident fund, mutual fund, and deposit insurance categories, a total of Tk 441.62 crore worth of Sukuk was allocated against 1,011 successful bids. The funds raised through this project, titled "Construction of Important Bridges on Rural Roads (1st Revised) (CIBRR-1)," are expected to play a significant role in improving rural infrastructure and the socio-economic conditions of the project areas.