United News of Bangladesh

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to expedite the disbursement of Tk 5,700 crore in cash incentives for the ready-made garment (RMG) sector. The call came during a meeting with Finance Minister Amir Khosru Mahmud Chowdhury at the Secretariat on Wednesday, a delegation member, led by BGMEA President Mahmud Hasan Khan, said on Thursday. BGMEA described the ‘fragile state’ of the industry, highlighting stalled incentives, working capital shortages, and hurdles to ease of doing business. Khan said the cash incentives for FY2025-26 remain trapped in audit procedures by lien banks and Bangladesh Bank, leaving many factories in severe liquidity stress. He urged a shift from the quarterly release system to immediate disbursement upon application. The Finance Minister acknowledged the demand’s validity and pledged to modernize and streamline the process for quicker fund release. BGMEA Vice President Md. Shihab Uddoja Chowdhury raised concerns over loan rescheduling, noting that while banks reschedule loans to manage non-performing loan ratios, they often fail to provide the working capital necessary to keep factories operational. He proposed a ‘win-win’ approach where banks supply working capital alongside rescheduling. The minister expressed support for the idea. Describing the garment industry as the ‘backbone of the economy’, Amir Khosru asked BGMEA to submit a detailed list of obstacles and recommendations within a week and assured full policy support for sustainable sector growth. The delegation included Senior Vice President Enamul Huq Khan, Vice President (Finance) Mizanur Rahman, Vice Presidents Vidya Amrit Khan and Md. Shihab Uddoja Chowdhury, and several board directors.

In a dramatic turn of events marked by confusion and protests, Md Mostaqur Rahman was appointed Governor of Bangladesh Bank within a day, replacing Ahsan H Mansur without prior announcement. Mostaqur received his appointment on Wednesday and joined office on Thursday, ending intense speculation that began earlier in the day over a possible change in the central bank’s top post. The 13th governor, Ahsan H Mansur, reportedly had no prior knowledge of his removal. Talking to reporters while leaving the central bank premises amid pressure from a section of officials and employees, he said, “I know nothing about this process. I hear that I am being removed. I did not resign. Resignation is not an issue; it would take me two seconds to resign.” Shortly after his departure, Adviser to the Governor Ahsan Ullah was also reportedly forced to leave the central bank. Within two hours, the Ministry of Finance issued a gazette notification announcing Mostaqur’s appointment. The ministry, however, did not provide a specific explanation as to why Mansur — who had one year remaining in his contract — was replaced abruptly, or why a businessman was chosen over an economist to lead the central bank. When asked why a routine institutional process took such a dramatic turn, Finance Minister Amir Khosru Mahmud Chowdhury said, “A new government has taken office. Many things are changing. Accordingly, the governor has been appointed through the normal process.” A Bangladesh Bank assistant director, speaking on condition of anonymity, said members of the Bangladesh Bank Officers’ Welfare Council had been agitating over various demands. “There was also significant pressure from the ruling party wing. Their demand was that the new government cancel all contractual appointments at Bangladesh Bank and appoint new individuals. The change in governor appears to be the culmination of that process,” he said. Mostaqur is the first businessman to be appointed governor, a position traditionally held by senior bureaucrats or economists. According to Bangladesh Bank, he holds an FCMA degree from The Institute of Cost and Management Accountants of Bangladesh (ICMAB). Sources at the central bank revealed that Mostaqur has no prior experience in a senior role at any bank or financial institution. He currently serves as the Managing Director of a sweater manufacturing company and is an active member of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Besides, Mostaqur holds affiliations with the Real Estate and Housing Association of Bangladesh (REHAB) and the Association of Travel Agents of Bangladesh (ATAB). He is also a member of the Dhaka Chamber of Commerce and Industry and has previously worked for a period at the Chittagong Stock Exchange. Mostaqur also served as the 23rd member of the 41-member central election management committee of the Bangladesh Nationalist Party (BNP) for the 13th parliamentary elections. Speaking to reporters on his first day at office, Mostaqur said, “Let me formally assume charge and begin work. Then everything will be said.” The leadership change comes at a time when Bangladesh’s foreign exchange reserves have increased from $25 billion to $35 billion following the fall of the Awami League government. The current reserve level is sufficient to cover six months of imports, compared to the three-month benchmark generally considered safe. After the August 5, 2024 student-led uprising that led to the ouster of the Awami League government, investigations by Bangladesh Bank revealed massive loan irregularities amounting to Tk 6.5 lakh crore. To manage the crisis, five Shariah-based Islamic banks were merged. Mansur, a former official of the International Monetary Fund (IMF), had also initiated efforts to recover laundered funds from abroad. Economists have expressed concern that appointing a businessman as governor may create potential conflicts of interest. “The biggest challenge for the new governor will be conflict of interest. How a businessman balances economic management with business interests is now the key question,” said former Bangladesh Bank chief economist Mustafa K Mujeri. Selim Raihan, executive director of the South Asian Network on Economic Modeling (SANEM), said the appointment raises concerns about the government’s commitment to banking sector reforms. ‘Govt moves to remove BB Governor, appoint successor’  “Appointing a cost accountant and businessman as central bank governor naturally raises questions — is the government truly committed to reforming the banking sector? The central bank is not only a monetary policymaker; it is also the regulator and supervisor of banks. Placing someone with a business background in such a critical role risks potential conflict of interest,” he said. He pointed out that Bangladesh’s banking sector is already grappling with high non-performing loans, governance deficits and political interference. “In this context, transparency, professional independence and regulatory experience were crucial considerations. Whether the new appointment meets those expectations or sets back reform efforts remains to be seen.” Mansur had been working to amend the Bangladesh Bank Order to strengthen the central bank’s full autonomy, a move that would restrict the finance ministry’s discretionary power in appointing governors. Economists fear the sudden leadership change could slow down or halt that reform process.  

Bangladesh's foreign exchange gross reserves on Wednesday crossed $35.03 billion within 9 days of the new government coming to office. According to the IMF BPM-6 calculation method,  which adheres to the principle "what cannot be spent, cannot be counted,"  the foreign exchange reserves reached $30.27 billion. Arif Hossain Khan, Executive Director and spokesperson of the central bank, confirmed this by text message on Wednesday night. Central bank officials noted that expatriate Bangladeshis are increasingly using legal channels to send money home, significantly strengthening the nation's dollar holdings. Due to the surplus of dollars in the banking system, there were concerns about a sharp decline in the value of the US dollar. To maintain market equilibrium and ensure stability, Bangladesh Bank has been actively purchasing dollars from commercial banks. During the current fiscal year, FY2025-26, the central bank has purchased approximately $4.90 billion from the market. This marks a sharp reversal from previous years (2021-2024), where the bank was forced to sell nearly $34 billion to curb an unstable market.

Bangladesh Bank Governor Dr Ahsan H Mansur on Tuesday pledged policy backing and faster disbursement of pending export incentives to help garment manufacturers navigate a mounting liquidity crisis ahead of Eid-ul-Fitr, as factories scramble to pay wages and bonuses to millions of workers. The assurance came at an emergency meeting held at the central bank headquarters with a delegation from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by Senior Vice President Inamul Haq Khan and Vice President Md Shihabuddoja Chowdhury. BGMEA officials described a ‘deep crisis’ gripping the ready-made garment sector, which accounts for the bulk of Bangladesh’s export earnings. They said February’s production cycle has been curtailed to 19 effective working days from 28 due to public holidays for the national election and Language Day, disrupting shipment schedules at a critical time. The industry is also contending with weaker international demand, declining product prices and rising production costs, compounded by global geopolitical instability. With compressed production timelines, factory owners face what the association termed a “monumental challenge” in ensuring timely wage and Eid bonus payments. To prevent labour unrest and safeguard industrial stability, BGMEA submitted a set of proposals to the central bank. The association urged authorities to expedite the release of approximately Tk 5,700 crore in pending cash incentives for fiscal year 2025-26 that remain stalled in audit processes. It also called for preferential treatment for small and medium-sized factories when disbursing those funds to help ensure their survival. Besides, BGMEA sought a special wage-support loan facility equivalent to two months’ salaries, featuring a three-month grace period and a 12-month repayment schedule. New govt to continue reforms in banking sector: Bangladesh Bank governor The group further requested the reintroduction of Packing Credit at a 7 percent interest rate and an expansion of the Pre-shipment Credit Scheme from Tk 5,000 crore to Tk 10,000 crore, with an extension of the scheme’s tenure to 2030. Mansur acknowledged the urgency of the situation and said the central bank would take ‘positive steps’ to address the liquidity shortage, with particular focus on prioritising cash incentive releases for SME factories. Ensuring workers are paid on time to maintain stability in key industrial zones is a top priority for the central bank, he said. The intervention comes as Bangladesh’s export-reliant apparel sector faces intensifying pressure from global market volatility, underscoring the central bank’s balancing act between financial discipline and safeguarding employment in one of the country’s most critical industries.

Barrister Mir Ahmad Bin Quasem Arman, a Jamaat MP, met Bangladesh Bank Governor Ahsan H. Mansur on Tuesday at his office to discuss a potential foreign investment in the mobile financial service (MFS) provider, Nagad. The meeting was held as Bangladesh Bank sought to restructure Nagad after administrative changes and allegations of financial irregularities. In August last year, the interim government announced plans to move Nagad from the Directorate of Posts to the private sector. Nagad announces Royal Enfield winner in mega campaign After the meeting, the Central Bank governor told reporters that the Postal Department lacks the capacity to run such a large operation and that a tender for new investors would be issued. He said Nagad needs a technologically advanced partner, similar to the model used by bKash, to regain competitiveness. Governor Mansur said the central bank will only work with credible foreign investors. He said a letter circulating on social media did not mention any recognised investor and no official proposal has been received yet. Arman, MP of Dhaka-14 and son of the late Mir Quasem Ali, said he is acting as a local legal representative for a group of international investors. Nagad to receive remittances thru National Bank He added that initial communications are ongoing and formal talks will start when the investors arrive in Bangladesh. The names and origins of the foreign firms were not disclosed. Launched in 2019 and later licensed as a digital bank, Nagad has faced scrutiny since the fall of the Awami League government. A central bank audit found a deficit of over Tk 101 crore in trust settlement accounts and an e-money gap of Tk 645 crore. In February, Bangladesh Bank filed an embezzlement case against 24 people including former Chairman Syed Mohammad Kamal and former MD Tanvir A. Mishuk.

The newly formed government will continue the ongoing reform programme in the banking sector, with priority given to controlling inflation, reducing non-performing loans and ensuring stability of the merged banks, Bangladesh Bank Governor Ahsan H Mansur said on Monday. He made the remarks while speaking to reporters after a closed-door meeting with Finance Minister Amir Khosru Mahmud Chowdhury at the minister’s office in the Secretariat. The governor said the meeting focused on reviewing the progress of various reform initiatives undertaken by the central bank in recent months. “We briefed the finance minister on the reforms we are implementing. He has emphasised continuing these measures and expressed strong support. His response was very positive,” Mansur said. Responding to questions, the governor said controlling inflation remains one of the government’s top priorities. “Inflation must be brought down — there is no disagreement on this,” he said. He said the central bank is working to reduce inflation through tighter monetary policy, better liquidity management and coordinated interest rate measures. Efforts are underway to control excess liquidity in the market and ensure that monetary policy remains aligned with inflation control objectives. The issue of rising non-performing loans was also discussed at the meeting, with the central bank taking stricter measures to address the problem. Mansur said legal actions against large defaulters are being strengthened, while loan restructuring policies have been tightened. Authorities are also identifying wilful defaulters and enhancing transparency in the loan classification process. “We are holding regular discussions with bankers. Many believe the steps taken are beginning to produce results,” he said. At the same time, he added, the central bank is ensuring that credit flow to productive sectors continues to support economic activity. Bangladesh’s forex reserves surge past $34 billion driven by remittance boom The stability of the five banks merged to form the consolidated Islami bank was also discussed during the meeting. The governor said ensuring stability of the merged institution is now a key priority, noting that the deposit situation has been gradually improving. “Depositors are receiving their funds, and new deposits are also coming in,” he said. He added that the process of appointing a new managing director had been delayed after a potential candidate fell ill. Until a new appointment is made, the administrator and board will continue overseeing reform measures. Extending the board’s tenure, if necessary, is also under consideration. The five banks — EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank — were merged to form the consolidated Islami bank. The bank has an authorised capital of Tk 400 billion and a paid-up capital of Tk 350 billion, of which the government has contributed Tk 200 billion. Bangladesh’s financial sector has faced widespread allegations of irregularities and corruption in recent years, particularly involving loan scams, capital flight, politically influenced lending and weak regulatory oversight. Following the political transition in August 2024, the interim government initiated a series of reforms to restore discipline in the financial sector. These included bank mergers, restructuring of bank boards, enhanced regulatory oversight, legal action against major defaulters and liquidity support measures. However, many of the reforms remain ongoing due to the limited timeframe of the interim administration. Officials said the responsibility for fully implementing these reforms and restoring stability and public confidence in the banking system now rests with the new government. Bangladesh Bank officials said key reform priorities include strengthening governance, reducing capital shortfalls, improving risk management, lowering defaulted loans and enhancing supervision across the banking sector.

Bangladesh’s agent banking sector is defying conventional trends, recording strong deposit growth even as the number of agents and service outlets declines. According to the latest report from Bangladesh Bank, total deposits in agent banking reached Tk 49,356 crore at the end of 2025, up 18 percent from Tk 41,785 crore in December 2024. This represents a net increase of Tk 7,571 crore. The growth comes amid a contraction in the sector’s physical infrastructure. Agent banking outlets fell from 21,248 in 2024 to 20,501 in 2025, a reduction of 747 service points. Active agents also declined from 16,019 to 15,328 over the same period. Experts attribute the drop in outlets largely to Agrani Bank’s suspension of certain agent banking operations. Remittance inflow crosses $2 billion in just 18 days of February “While the closure of some networks impacted the numbers, the surge in deposits is a positive sign,” said Arfan Ali, a veteran banker and former Managing Director, highlighting renewed public confidence in the formal banking system. Key Performance Indicators (2025 vs 2024): ·         Deposits: Tk 49,356 crore, up 18% ·         Loan Disbursement: Tk 11,755 crore, up 16% ·         Active Accounts: ~2.5 crore ·         Transaction Volume: 2.62 crore in Oct-Dec 2025, down 3% from 2.70 crore Top Banks by Agent Banking Deposits: ·         Islami Bank Bangladesh PLC: Tk 21,530 crore (Market Leader) ·         Dutch-Bangla Bank: Tk 6,887 crore ·         Bank Asia: Tk 6,515 crore ·         Al-Arafah Islami Bank: Tk 3,869 crore ·         BRAC Bank: Tk 2,897 crore Agent banking remains a low-cost avenue for banks to reach rural markets, allowing them to mobilize small savings and channel funds into corporate loans. Around 30 public and private banks currently offer services including cash deposits, loan processing, utility bill payments, and remittance disbursement. Despite a slight decline in transaction numbers, the sector’s loan accounts grew to over 2.39 lakh, signalling its rising importance as a source of credit for small-scale borrowers and rural entrepreneurs.

Traders at the capital’s Karwan Bazar on Monday announced price reductions on several essential commodities, including lemon, edible oil, sugar and beef, aiming to ease consumers’ burden as the holy month of Ramadan is underway. The announcement came at a press conference organised by Islamia Shanti Samiti at the kitchen market of Karwan Bazar. Business leaders said they have decided to lower prices by reducing their profit margins in consideration of consumers during the holy month of Ramadan. According to the traders, the price of lemon will be reduced by Tk 2 per piece, edible oil by Tk 1 per litre, sugar by Tk 1 per kg, gram (chhola) by Tk 2 per kg, Tang (200g packet) by Tk 5, beef by Tk 30 per kg and Miniket rice by Tk 1 per kg. Lemon traders said lemons are sold in different categories depending on quality and source. Premium-quality lemons are currently sold at up to Tk 17 per piece, while lower-grade ones sell for as low as Tk 3. Prices of all categories will be reduced by Tk 2 per piece, they added. Edible oil traders said they will cut Tk 1 per litre. A five-litre bottle, previously sold at Tk 920, will now be available at Tk 915. Traders also said packaged sugar, which has a printed price of Tk 105 per kg and was being sold at Tk 102, will now be sold at Tk 101 per kg. The price of gram has been reduced from Tk 85 to Tk 83 per kg. Beef traders announced a Tk 30 reduction per kg, bringing the price down to Tk 750. Miniket rice will also be sold at Tk 1 less per kg, they said. Among others, Saiful Islam Milon, MP from Dhaka-12 constituency, and business leaders of Karwan Bazar were present at the press conference.  

The Bangladesh Energy Regulatory Commission (BERC) on Sunday reduced the retail price of furnace oil supplied by the Bangladesh Petroleum Corporation (BPC) by Tk 15.90 per litre, effective from midnight. Under the new rate, furnace oil will be sold at Tk 70.10 per litre, down from the previous price of Tk 86 per litre, according to a BERC media release. The commission said the price was re-fixed in line with Sections 34(4) and 34(6) of the Bangladesh Energy Regulatory Commission Act, 2003. BERC noted that BPC had submitted a proposal on January 20, 2024 seeking a revision of furnace oil prices. Subsequently, state-run oil marketing companies also proposed increases in their marketing and composite transportation charges. Among them, Meghna Petroleum Limited submitted its proposal on May 26, 2025, Standard Asiatic Oil Company Limited on June 3, Jamuna Oil Company Limited on June 26, and Padma Oil Company Limited on July 11. A public hearing on the proposals was held on January 29 this year. Stakeholders and interested parties were allowed to submit written opinions until February 3 following the hearing. After reviewing and analysing all proposals and opinions in detail, the commission exercised its authority under the law to re-determine the price, the release said. As per the new decision, the marketing charge for furnace oil has been set at Tk 0.72 per litre for Padma Oil Company, Meghna Petroleum, Jamuna Oil Company and Standard Asiatic Oil Company. The composite transportation charge has been fixed at Tk 1.20 per litre. BERC said the revised retail price of furnace oil will come into effect nationwide from 12:00am Sunday night. Furnace oil is a high-viscosity, cost-effective, and energy-dense residual fuel derived from petroleum refining, primarily used in industrial and heavy-duty applications. Its key uses include powering industrial furnaces, boilers, and kilns for heating, steam generation, manufacturing, and as a fuel in marine vessels and power generation plants

Like previous years, customers can enjoy up to Tk 1,000 in discounts and cashbacks this Ramadan on shopping with bKash payment at top superstores across the country. This offer has been introduced to make grocery and daily essential shopping more affordable, hassle‑free, and safe during the holy month of Ramadan and Eid. Additionally, exciting discounts and cashbacks of various amounts are also available on bKash payment at renowned fashion brands, bakeries, iftar markets, home appliances, restaurants, hotels, e‑ticketing, and many other products and services. Tk 500 Discount at Superstores Customers can get discount by applying ‘D2’ coupon code in bKash app and making minimum bKash payment of Tk 1,500 at selected superstores. During Ramadan, customers can avail Tk 100 once per day, and up to Tk 500 in 5 transactions during the campaign period. This offer is available at different outlets of Agora, Unimart, Meena Bazar, Prince Bazar, Amana Big Bazar, Apon Family Mart, Big Bazar, Lavender, Mostafa Mart, Wholesale Club, Halishahar Mart, Khulshi Mart, Utsab Super Market, Bengal Meat, and several other superstores. Tk 300 Discount at Shwapno & Daily Shopping Meanwhile, customers can enjoy up to Tk 300 discount at ‘Shwapno’ and ‘Daily Shopping’ located nationwide by applying the ‘D3’ coupon code. The offer is applicable for minimum bKash payment of Tk 800. Customers can get Tk 100 discount once per day and up to Tk 300 in 3 transactions during the campaign. Tk 200 Cashback on Online Groceries For any order from online grocery platforms Chaldal, Daily Shopping, Meena Bazar, and Paragon, customers can get up to Tk 200 cashback by making a minimum bKash payment of Tk 1,200. Customers can receive 5% cashback up to Tk 100 once per day, and up to Tk 200 in 2 transactions during the campaign period. It is to be noted that the bKash payment offers on grocery shopping will remain valid till March 21, 2026.