United News of Bangladesh

Masud Khan, the newly appointed chairman of the Bangladesh Securities and Exchange Commission (BSEC), on Tuesday promised a sweeping transformation of the country's capital market, outlining plans to scrap floor prices, crack down on market manipulation, attract foreign investment, and shift the market from retail-investor dependence to an institutionally driven, credible investment destination. Delivering his inaugural address at a press conference at the BSEC office in Agargaon, shortly after taking charge on Tuesday afternoon, Masud acknowledged that the capital market had failed to keep pace with Bangladesh's broader economic growth and that investor confidence had been severely eroded over the years. “Trust is not built through speeches. Trust is not built by artificially supporting the market. Trust comes from fairness, transparency, consistency and accountability,” the new BSEC chairman said. In one of his most significant policy pronouncements, Masud declared that no floor price would be imposed on securities in the future, and that existing floor prices would be phased out in a calibrated manner based on market conditions, allowing the market to return to a natural price discovery process. Masud set out an unambiguous vision for the regulator: to transform Bangladesh's capital market from a retail-driven frontier market into a transparent, institutionally anchored market capable of mobilising long-term domestic and international capital for the country's economic growth. He said the new commission had assumed responsibility at a critical juncture, when many investors had suffered losses, quality companies remained reluctant to list, foreign investor participation had dwindled, and the mutual fund industry had failed to earn public trust.  

Dhaka's stock market surged to its highest turnover of 2026 on Thursday as the capital market regulator Bangladesh Securities and Exchange Commission (BSEC) saw its outgoing chairman resign and a new one appointed on the same day. Trading on the Dhaka Stock Exchange (DSE) hit Tk 1,351 crore by the close of the session, the highest single-day turnover this year, buoyed by renewed investor confidence following the leadership transition at the top securities regulator. Markets began climbing in the morning after news of the resignation of BSEC Chairman Khondoker Rashed Maqsood and four commissioners spread around. Turnover crossed Tk 1,000 crore before noon. Sentiment strengthened further during the session when Masud Khan was appointed as the new BSEC chairman, pushing activity higher through the closing bell. The previous year-high turnover had been set just a day earlier, when DSE turnover stood at Tk 1,279 crore on Wednesday. Positive momentum had, in fact, defined the entire week. All four trading sessions since markets reopened Monday following the Eid-ul-Azha holiday recorded gains, with the benchmark index rising on each day. Thursday was no exception. The flagship DSEX index gained 33 points, the Shariah-based DSES rose 9 points, and the blue-chip DS30 index added 11 points. Advancers outpaced decliners with 242 companies posting gains against 104 losers, while 45 scripts closed unchanged. Genex Infosys PLC led the gainers with a 10 percent jump, while Jamuna Bank PLC was the top loser, shedding nearly 10 percent. The Chittagong Stock Exchange (CSE) also closed in the green. The all-share index CASPI advanced 83 points, with 152 companies advancing against 74 declining and 29 unchanged. Total turnover at the CSE stood at Tk 27.46 crore.  

Administrative action will be taken against anyone disrupting customer services, said Islami Bank acting Managing Director Md. Altaf Hossain on Thursday amid reports of a symbolic work stoppage at several branches. The warning came after a section of bank officials reportedly observed a one-hour ‘pen-down’ strike at multiple branches in response to a call from the ‘Sachetan Grahak Forum’ (Conscious Customers Forum), which has been protesting for the past three days demanding removal of newly appointed Chairman Md. Khurshid Alam. The forum on Wednesday urged employees to suspend work for an hour on Thursday in solidarity with its movement. Speaking at the bank’s head office in Dilkusha, Motijheel, Altaf Hossain clarified that the management had issued no instructions for any form of work stoppage. “There is no such directive from our side. If any official refuses to provide services, administrative action will be taken against them,” he said. Customer services were partially or fully disrupted for about an hour in some locations although bank officials largely refrained from making public comments. Responding to the situation, the acting MD said the bank’s staff remain committed to serving customers. “Our officers are fully ready to serve. If customers do not come forward for services, it is not possible for us to force it. It is also difficult to monitor the real-time situation of every branch from the head office,” he said. Asked about concerns over possible withdrawal pressure amid the ongoing unrest, Hossain acknowledged increased activity but said there was no cause for alarm. “If all depositors rush to withdraw their money in a single day, any bank in the world would collapse. That is a basic financial reality. But practically that never happens,” he said. He added that the bank has seen a rise in withdrawal pressure due to the prevailing situation, but it remains within manageable limits. “There is definitely some increased pressure due to the current situation, but it is still tolerable. There is no reason for panic. If any critical situation arises, it will be visible to everyone,” he added. The unrest at the Shariah-based lender began late last month following the resignation of former Chairman Prof. M. Zubaidur Rahman and the central bank's subsequent appointment of former Deputy Governor Md. Khurshid Alam to the post.

The government has appointed Masud Khan as the Chairman of  Bangladesh Securities and Exchange Commission (BSEC) as part of its efforts to strengthen the country's capital market regulatory framework. The Financial Institutions Division of the Ministry of Finance issued a notification in this regard on Thursday. According to the notification, Masud, Group CEO of Crown Cement PLC, has been appointed Chairman of the BSEC for a four-year term under Section 5(2) of the BSEC Act, 1993. The notification said he will assume the new role subject to relinquishing all employment and professional engagements with Crown Cement and other organisations. Under the terms of his appointment, he will receive government pay, allowances and other benefits applicable to the position. A seasoned corporate executive with more than four decades of experience in multinational and local companies, Masud has been serving as an independent director and chairman of the audit committee of Singer Bangladesh Limited and Community Bank Bangladesh. He was also serving as an independent director of British American Tobacco Bangladesh and chairman of its Nomination and Remuneration Committee. Before joining Unilever Consumer Care as Chairman, Masud worked for 18 years as Chief Financial Officer (CFO) of LafargeHolcim Bangladesh. Earlier, he spent two decades in various finance and leadership positions at British American Tobacco. Masud has also been associated with the Institute of Chartered Accountants of Bangladesh (ICAB) as a faculty member for more than 40 years. He earned a Bachelor of Commerce (Honours) degree from St. Xavier’s College in Kolkata. A Chartered Accountant (CA) and Cost and Management Accountant, Masud won a silver medal in the All-India Chartered Accountancy Examination in 1977. He is also a Fellow of the Institute of Certified Management Accountants of Australia and New Zealand. His appointment came hours after former chairman Khondoker Rashed Maqsood resigned on Thursday morning after serving for 21 months during the tenure of the interim government. Four commissioners of the securities regulator also stepped down on the same day. The development follows the passage of the Bangladesh Securities and Exchange Commission (Amendment) Act, 2026 in Parliament on April 30, which abolished the previous age limit of 65 for appointing the BSEC chairman and commissioners. The government said the amendment was intended to enable the appointment of experienced professionals to the country's capital market regulator.

Bangladesh is facing mounting economic challenges as weak revenue collection, persistent inflation, banking sector fragility and rising energy costs weigh on the economy, the Centre for Policy Dialogue (CPD) said on Thursday. Presenting the third reading of its Independent Review of Bangladesh's Development (IRBD) FY2025-26 at its office in Dhaka, the think tank said the economy is grappling with a combination of macroeconomic, financial, sectoral and social challenges despite signs of resilience in some areas. The report, titled “State of the Bangladesh Economy in FY2025-26: Multidimensional Challenges during the Transition Period,” was presented by CPD Executive Director Dr. Fahmida Khatun, who said recent developments reflect a mixed picture of resilience and vulnerability. Revenue and Public Finance Bangladesh's revenue mobilisation grew by only 6.9 per cent during July-March of FY26, against a target growth rate of 29.3 per cent. CPD said meeting the annual target would now require an improbable 84.6 per cent growth in the final quarter, calling the revenue mobilisation target “operationally unrealistic.” NBR tax collection fell short of the target by BDT 104,533 crore during July-April FY26, with growth of 10.6 per cent against a target of 34.5 per cent. Closing the gap by June would require 128.6 per cent growth in May-June, a figure the think tank described as near-impossible. ADP implementation stood at just 35.4 per cent during July-April FY26, significantly below the FY17-FY24 average of 49.8 per cent. To finance the widening deficit, the government leaned heavily on bank borrowing, which reached BDT 102,442 crore or 98.5 per cent of the full-year target by March FY26, up 20 per cent from the same period of FY25. CPD warned this could crowd out private sector credit and dampen investment. Inflation and Living Costs Inflation rose to 9.04 per cent in April 2026, up from 8.71 per cent in March, with non-food inflation reaching 9.57 per cent. The Strait of Hormuz blockade triggered sharp fuel price increases between December 2025 and May 2026: diesel rose 15 per cent to BDT 115 per litre, while octane and petrol each surged over 20 per cent. The price of a 12 kg LPG cylinder jumped 40.57 per cent, from BDT 1,341 in March 2026 to BDT 1,885 in June 2026. A CPD market survey of around 1,000 agents across 10 commodities identified green chilies, onions, pulses and brinjals as carrying the highest markups in the supply chain, driven largely by the dominant role of urban aratdars. Banking Sector The banking sector's capital adequacy ratio fell to a historic low of negative 2.93 per cent. Specialised banks collapsed to a CRAR of negative 87.9 per cent in September 2025. While the gross NPL ratio declined from 35.73 per cent in September 2025 to 32.26 per cent in March 2026, CPD said the improvement reflects rescheduling and restructuring rather than any real asset quality recovery. Private sector credit growth fell to a record low of 4.72 per cent in March 2026, constraining investment and job creation. Excess liquidity as a share of total liquid assets rose from 43 per cent in May 2025 to 55 per cent in March 2026, a sign of cautious lending and weak economic activity, CPD said. On regulatory measures, CPD flagged concern over a proposed amendment that would allow former owners of distressed banks to regain control, calling it an accountability risk that could weaken resolution credibility. It also raised concern over a Bangladesh Bank circular raising the single-borrower exposure limit from 15 per cent to 25 per cent of capital until June 2028, warning it could amplify systemic risk. External Sector Bangladesh's overall balance of payments shifted from a deficit of USD 1.1 billion in FY25 to a surplus of USD 3.6 billion in FY26 during July-March, an improvement of USD 4.8 billion. Remittances rose 19.8 per cent during July-April FY26, continuing to serve as a critical external stabiliser. Forex reserves stood at USD 34.57 billion on 23 May 2026. However, CPD cautioned that the BoP improvement was driven largely by debt-creating financial account inflows of USD 3.2 billion, not a genuine improvement in the current account. Exports fell 2.02 per cent during July-April FY26, far below the 14 per cent target. RMG exports declined 2.8 per cent, with knitwear falling 3.7 per cent. Bangladesh lost ground in both the US and EU markets, while Vietnam gained. External debt stood at USD 113.2 billion as of June FY25. Debt servicing costs have more than doubled in five years, from USD 3.2 billion in FY20 to USD 7.2 billion in FY25. The IMF in January 2026 moved Bangladesh to moderate risk from low risk, while Fitch revised its outlook to negative in May 2026. Labour Market CPD said factory closures since August 2024 left between 100,000 and 300,000 workers unemployed. Real wages declined throughout January 2025 to April 2026, with industrial workers bearing real wage contractions of up to 2.1 per cent. Wage-related labour unrest incidents rose from 59 in 2023 to 204 in 2025. Workplace deaths stood at 1,190 in 2025, with at least 186 recorded in the first quarter of 2026 alone. Overall unemployment is expected to remain at 3.8 per cent in 2026, while youth unemployment is projected to rise from 9.1 per cent to 9.7 per cent. Energy Crisis and Haor Floods The Strait of Hormuz blockade exposed Bangladesh's deep vulnerability to imported fuel dependency. CPD estimated that the government will need BDT 31,122 crore in additional subsidies for the energy sector by the end of FY26. The Haor floods of April 2026 damaged an estimated 49,000 hectares of boro cultivation, affecting 236,811 farm households. CPD's own estimate placed rice losses at 339,449 metric tonnes, significantly higher than the official DAE revised figure of 214,000 MT. The government's compensation of BDT 7,500 per farmer, CPD said, covers only 14-18 per cent of per-household production loss. Measles Outbreak CPD characterised the 2026 measles outbreak as a case study in health sector governance failure. Between 15 March and 2 June 2026, the outbreak produced 74,572 suspected cases, 9,191 lab-confirmed cases and 601 deaths. About 72 per cent of cases were among zero-dose children. CPD attributed the outbreak to vaccine stockouts in 2024-2025, the absence of a nationwide MR campaign since 2020, and procurement failures. Recommendations CPD called for broad structural reforms, including expanding the tax base, curbing illicit financial flows and improving ADP implementation. It urged stricter loan classification, greater transparency in rescheduled loans and an end to political influence in banking. The think tank also recommended accelerating gas exploration, expanding rooftop solar, digitising the fuel supply chain, improving agricultural loss assessments, increasing compensation for flood-hit farmers and providing a 12-month loan moratorium. “Bangladesh's recovery requires credible governance reform beyond macroeconomic stabilisation,” said Fahmida Khatun, stressing the need for stronger institutions and accountability to achieve the government's development goals.

Bangladesh has formally requested a fresh financial arrangement from the International Monetary Fund (IMF) to support and anchor its ongoing macroeconomic reform initiatives, the global lender announced on Wednesday. In a statement issued today (Wednesday), IMF Mission Chief for Bangladesh, Mr. Ivo Krznar, said that discussions are already underway regarding the policy priorities and structural updates underpinning the new funding request. "The ongoing IMF-supported program, approved in January 2023 under the Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF), has served as a critical policy anchor for Bangladesh," the Mission Chief noted. However, the global lender emphasized that the country’s macroeconomic and political landscape has shifted significantly since the inception of the 2023 program, with banking-sector vulnerabilities and chronic revenue-collection shortfalls emerging as primary structural challenges. The IMF indicated that negotiations for the potential new facility are designed to address current ground realities and align closely with the strategic priorities of the new administration. The multilateral lender explicitly clarified that any new credit package will be strictly contingent upon the country’s balance of payments (BOP) needs, the strength of its policy commitments, and the credibility of its structural reform agenda. Any finalized deal will ultimately require the stamp of approval from the IMF’s Executive Board. To lay the groundwork, the IMF is planning an upcoming staff visit to Dhaka. The delegation will review recent macroeconomic developments, evaluate policy priorities, and assess looming economic headwinds. Detailed negotiations regarding the exact financial quantum, tranches, and conditions of the new package will take place during subsequent formal missions. Reiterating its long-term stance, the Washington-based lender stated that it remains fully committed to partnering with Bangladesh to restore sustainable macroeconomic stability, fortify financial sector resilience, and stimulate inclusive economic growth.

Bangladesh’s export earnings declined by 7.09 percent year-on-year in May 2026, reflecting continued weakness in the country’s key ready-made garment (RMG) sector amid persistent domestic and global economic challenges. According to data released by the Export Promotion Bureau (EPB) on Wednesday, export receipts stood at $4.40 billion in May, down from $4.73 billion in the same month a year earlier. The decline also weighed on overall export performance during the first eleven months (July–May) of fiscal year 2025–26. Total export earnings fell by 2.55 percent to $43.79 billion, compared with $44.94 billion in the corresponding period of the previous fiscal year. The RMG sector, which contributes more than 80 percent of Bangladesh’s export earnings, remained the main drag on overall performance. Apparel exports dropped by 8.29 percent year-on-year to $3.59 billion in May from $3.91 billion a year earlier. During the July–May period, cumulative RMG exports declined by 3.41 percent to $35.31 billion, compared with $36.56 billion in the same period of FY2024–25. Industry stakeholders attributed the slowdown to a combination of domestic and external factors, including energy shortages, higher production costs, elevated gas prices, weak consumer demand in key export markets and cautious purchasing by global retailers. Despite the annual decline, export earnings posted a month-on-month recovery in May. Total exports rose by 9.8 percent from April’s $4.0 billion, while apparel shipments increased by 14.43 percent from $3.14 billion recorded in the previous month. Meanwhile, several non-traditional export sectors registered positive growth, offering some support to the overall export basket. Pharmaceuticals, plastics, jute and jute goods, printed materials, home textiles and engineering products recorded notable gains during the period. Exports of leather goods, fresh fruits and crabs also increased, indicating gradual progress in export diversification efforts. The data also showed encouraging performance in several overseas markets. While demand remained subdued in parts of Europe, exports to the United States posted growth during the July–May period. Bangladesh also strengthened its position in a number of emerging and secondary markets, including Spain, the Netherlands, Poland, Canada, China, the United Arab Emirates and Saudi Arabia.

The government has approved a proposal to procure three cargoes of liquefied natural gas (LNG) at a cost of Tk 2,372 crore, including all applicable taxes, to meet the country's growing energy demand. The approval came from the Cabinet Committee on Public Procurement at its meeting held at the Secretariat on Wednesday with Finance Minister Amir Khosru Mahmud Chowdhury in the chair. Cabinet Committee approves three more LNG cargoes from spot market According to the proposal placed by the Energy and Mineral Resources Division, one LNG cargo will be purchased from BP Singapore Pte Ltd, while the remaining two cargoes will be procured from TotalEnergies Gas & Power Ltd, UK. The LNG cargoes are scheduled for delivery during three separate windows: June 26-27, June 30-July 1, and July 6-7, 2026. The procurement will be carried out through the international request for quotation method in accordance with Rule 105(3)(a) of the Public Procurement Rules 2025. The total approved expenditure for the three LNG cargoes stands at Tk 23,72,21,18,784. The committee recommended the proposal for final approval to ensure a steady supply of natural gas and support the country's power generation and industrial activities. Meanwhile, the Cabinet Committee on Public Procurement also recommended approval of a proposal to purchase two LNG cargoes from SOCAR Trading SA of Switzerland under a government-to-government (G2G) arrangement. According to the proposal placed by the Energy and Mineral Resources Division, the two LNG cargoes will be procured through a direct purchase process on a short-term basis this year. SOCAR Trading SA, Switzerland, was selected as the recommended supplier, with the price benchmarked at JKM plus US$0.125 per MMBTU.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury on Wednesday said the national budget for fiscal year 2026-27 (FY27) will be placed in the Jatiya Sangsad on June 11, with a focus on the welfare of all citizens as the country navigates a fragile economic situation inherited from previous administrations. “Insha Allah, this budget will be placed on June 11. It is being prepared considering every citizen of Bangladesh,” Khosru told reporters at the Bangladesh Secretariat. “We are passing through a difficult period. We inherited a fragile economy, but despite that, we are trying our best. This budget is being formulated keeping in mind every citizen of the country,” he said. The minister said the government assumed office amid a challenging economic environment marked by a heavy debt burden, rising poverty and declining investment. “Despite these challenges, we have taken responsibility and are working to deliver a budget that reflects the interests of all citizens,” he said. Khosru said the government aims to ensure broader participation in economic activities so that the benefits of growth reach all segments of society. “Hopefully, this budget will mark a good beginning as we work to recover from a fragile economic situation. Although the process will take time, the start will be positive and we will gradually move towards improvement,” he said. The finance minister said the government is seeking to steer the economy towards an investment-led growth model, moving away from what he described as previous practices of excessive money printing and heavy borrowing from the banking sector. He said efforts are underway to restore sound public financial management and prevent the country from falling into a debt trap, noting that a significant portion of the national budget is currently being spent on servicing loan interest payments. “We are trying our best to reduce our dependence on loans and increase our reliance on investment. Gradually, we will have to reduce operating costs while encouraging greater investment,” he said. Khosru said the government has been working relentlessly since assuming office to correct distortions in the economy and restore macroeconomic stability, with a view to bringing discipline to the financial sector. “These efforts will ultimately protect the interests of the people of Bangladesh and help us realise our dream of becoming a trillion-dollar economy,” he added.

Protests against the appointment of Khurshid Alam as chairman of Islami Bank Bangladesh PLC entered a third consecutive day on Wednesday, with hundreds of depositors and  shareholders vowing to prevent him from assuming office and threatening an indefinite blockade of the bank’s headquarters if he attempts to enter. Under the banner of the 'Sachetan Grahak Forum' (Conscious Customers Forum), hundreds of protesters consisting of depositors, shareholders, and representatives from various professional groups brought out a protest march on Wednesday. The procession was held in front of the bank’s head office in Dilkusha, Motijheel and culminated in a rally outside the National Press Club. Speaking at the rally, Conscious Customers Forum Convener Nurun Nabi Manik warned that demonstrators would resist any attempt by Khurshid Alam, a former deputy governor of Bangladesh Bank, to take office as chairman of Islami Bank, saying they were prepared to ‘lay down their lives’ to stop him. On Monday, law enforcement personnel deployed batons, tear gas, water cannons, and sound grenades to disperse demonstrators, resulting in several injuries.  On Wednesday, the area remained under a tight security blanket with armored personnel carriers (APCs) and water cannons kept on standby. Protesters allege that a  ‘conspiracy’ orchestrated by the central bank and quarters within the government aims to hand control of the Shariah-based lender back to an opportunistic "looting clique." Speaking to reporters, Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan rejected the demands of the agitators, maintaining that the central bank will not reverse its decision. "The chairman of a bank will not be changed based on street agitations. Bangladesh Bank stands firm on its decision," the spokesperson said, adding that political or group interference in bank management is unacceptable. Addressing allegations floating against the newly appointed chairman, the central bank spokesperson dismissed them as "baseless."  He clarified that Khurshid Alam holds no personal outstanding loans with First Security Islami Bank, though he acknowledged that a loan registered under his wife's name is currently classified as defaulted.