United News of Bangladesh

Commerce Adviser Sk Bashir Uddin has dismissed the speculations of any secret deal with the United States in exchange for the reciprocal tariff reduction on Bangladeshi exports from 35 percent to 20 percent, saying all discussions prioritised the national interests. “There is no room to ignore our own interests,” he said during an informal interview with journalists in Washington on Friday. “Whatever we did, we did by prioritising our country—just as the US prioritises its national security," the adviser said. When asked about the full disclosure of the agreement, the adviser said a joint statement may be issued soon and the details will be shared with the consent of the United States. “Any components that might affect our interests had been resolved through discussions,” he added. He also noted that a Bangladeshi business delegation is currently in the USA, and "they will not do anything that goes against their own interests." Regarding speculations about Bangladesh agreeing to purchase 25 Boeing aircraft as part of the deal, the adviser clarified, “The US never mentioned anything about Boeings. Instead, they have shown interest in food, agricultural products and fuel.” Regarding achievements in the aviation sector, the adviser expressed optimism, stating, “We are working to ensure transparency and carrying out necessary reforms in the sector. Hopefully, during our tenure, we will implement structural reforms within the ministry that will benefit those who come after us.”

President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Mahmud Hasan Khan, has welcomed the recent decision by the United States to reduce the reciprocal tariff on Bangladeshi exports from 35 percent to 20 percent. In a statement issued on Friday, Khan described the move as a significant relief for the country’s garment sector, which has been grappling with uncertainty over the past three months. According to Khan, the prolonged period of unpredictability surrounding tariff rates had made it difficult for businesses to operate smoothly. Both Bangladeshi exporters and US buyers were uncertain about the future, which disrupted the usual flow of trade. The tariff reduction, he said, restores some much-needed stability and predictability to the market. He also mentioned that while Bangladesh’s new tariff rate is still 1 percent higher than that of its competitor Pakistan, it is 5 percent lower than India’s and 10 percent lower than China’s. This comparative advantage, Khan believes, will help sustain Bangladesh’s competitiveness in the US market. Despite the positive development, the BGMEA president warned of potential short-term disruptions. With higher tariffs now applicable on US imports from Bangladesh than before, American buyers may find their capital stretched. If they are unable to secure additional financing, they might reduce order volumes. Ultimately, the extra cost of the tariffs is expected to be passed down to US consumers, whicph could lead to higher retail prices and potentially a drop in overall sales. Khan pointed out that the impact of recent US trade policies has already been felt. Since April, the Trump administration has imposed a minimum 10 percent reciprocal tariff on imports from all countries. Some US buyers responded by pressuring suppliers in Bangladesh to share the additional cost burden. He emphasised that going forward, this duty must be borne by the importers and buyer companies, and not by Bangladeshi manufacturers. He stressed the importance of clearly communicating this position to all BGMEA members and stakeholders. Referring to the situation with China, he said that the country is currently facing a 30 percent counter-tariff, with further increases likely. If China’s final tariff rate remains higher than Bangladesh’s, there is a strong possibility that more orders will be redirected from China to Bangladesh. He sees this as a potential opportunity for expansion but cautioned that for Bangladesh to take full advantage of it, infrastructure and policy support must be in place. He specifically mentioned the need for a reliable energy supply, expanded capacity at the Chittagong Port, and continued political stability. Khan also commented on the broader trade agreement, stating that so far only the draft or summary has been shared publicly. He expressed hope that the final deal has been negotiated in a way that protects Bangladesh’s trade and national interests. He highlighted the importance of following through on the commitments made during the counter-tariff negotiations. These include short-term purchases of wheat, cotton, and LNG, as well as long-term commitments like aircraft procurement. The BGMEA president warned that any failure to honour these agreements could put them in a difficult situation again.  

Bangladesh secured a 20% US tariff rate—comparable to its key apparel-sector competitors such as Sri Lanka, Vietnam, Pakistan and Indonesia, which received rates between 19% and 20%.  As a result, Bangladesh's relative competitiveness in apparel exports remains unaffected, according to Chief Adviser's press wing. By contrast, it said, India received a 25% tariff after failing to reach a comprehensive agreement with the US. “We negotiated carefully to ensure that our commitments aligned with our national interests and capacity,” said Dr Khalilur Rahman, Bangladesh’s National Security Advisor and lead negotiator.  “Protecting our apparel industry was a top priority, but we also focused our purchase commitments on U.S. agricultural products. This supports our food security goals and fosters goodwill with U.S. farming states,” he said.  “Today, we successfully avoided a potential 35% reciprocal tariff. That’s good news for our apparel sector and the millions who depend on it. We’ve also preserved our global competitiveness and opened up new opportunities to access the world's largest consumer market,” Dr Rahman added. Now US could collect over $1 billion in tariffs from Bangladeshi goods: CPD study President Donald Trump today announced new tariff rates—up to 41%—on imports from 70 countries, just ahead of the August 1 deadline for finalising bilateral trade agreements. These agreements extend beyond tariff adjustments to include domestic policy reforms that the Trump administration views as contributing to trade imbalances.  They also address broader economic and national security concerns.  As part of the negotiations, countries were required to make explicit commitments to purchase US goods to help narrow trade deficits. Given the scope of issues involved, the negotiation process has been complex and time-consuming.  Tariff relief was tied not only to reductions in duties on US exports but also to a country’s willingness to address U.S. concerns on non-tariff barriers, trade imbalances, and security matters, said the Chief Adviser’s press wing on Friday. BNP urges US to keep tariffs on Bangladesh at reasonable level President Trump's executive order made clear that each country’s tariff rate would reflect the depth of its commitment across all these areas.

The government has decided to keep fuel prices unchanged at the consumer level in August, based on the revised pricing formula and guidelines. According to a statement issued by the Ministry of Power, Energy and Mineral Resources on Thursday, the prices will remain at Tk 102 per litre for diesel, Tk 114 for kerosene, Tk 122 for octane, and Tk 118 for petrol. The new rates, which will come into effect from August 1, have been fixed and approved by relevant authorities, the ministry said. The move aims to ensure a steady and affordable fuel supply for consumers.

Nuruddin Md. Sadeque Hossain, managing director of Southeast Bank, has resigned citing health reasons. His resignation letter was submitted to the bank’s chairman on July 28. Nuruddin had been on a three-month leave since May 4, set to end on August 4. During his absence, Additional Managing Director Abidur Rahman Chowdhury has been serving as Acting Managing Director. Appointed MD on April 5, 2023, Nuruddin previously served as the bank’s Deputy Managing Director.

Bangladeshi expatriates have sent inward US$2.36 billion in remittances in the first 30 days of July, the first month of the current fiscal year 2025-26. Arif Hossain Khan, Executive Director and Spokesperson for the Bangladesh Bank, confirmed these figures Thursday. Remittances cross $2bn in 27 days of July According to central bank data, the expatriates were sent $1.79 billion in the same period of the previous fiscal year (FY2024-25). It means inward remittance flow has grown by $574 million or by 32 percent in 30 days of July. Last year during this period, expatriate workers were observing a so-called 'remittance strike'. On 30 July, the expatriates sent $92 million remittance in a single day. The expatriates sent $30.32 billion remittance in FY2024-25, which is the highest ever. Bangladesh received $1.07bn in remittances in 12 days of July  

The Dhaka Chamber of Commerce and Industry (DCCI) has raised serious concerns over Bangladesh Bank’s continued contractionary monetary policy, warning that high interest rates and declining credit growth are choking trade, investment and industrial activity. In a statement on Thursday, DCCI said private sector credit growth dropped to 6.4% in June 2025, the lowest in 22 years, reflecting a sharp economic slowdown. It blamed the downturn on tightened monetary conditions, energy shortages, persistent business uncertainty and law and order concerns. DCCI also flagged a spike in non-performing loans (NPLs), now at Tk 5.3 lakh crore or 27.09% of total loans, calling it a major risk to financial stability and investor confidence. Despite weak business sentiment, the central bank has held its policy rate at 10% to control inflation. However, DCCI observed that inflation has eased only slightly while high borrowing costs continue to hurt cottage, micro, small and medium enterprises (CMSMEs) and other key sectors. DCCI calls for long-term logistics master plan to boost trade competitiveness The new monetary policy reduces the private sector credit growth target to 7.2% for the next six months, down from 9.8%, further fuelling fears of a credit squeeze. In contrast, public sector credit growth has been raised to 20.4%, which DCCI warns could increase fiscal pressure and crowd out private investment. To address the crisis, DCCI urged the central bank to lower interest rates, extend loan classification periods by six months for good borrowers, ensure transparent credit allocation, enact financial reforms and maintain adequate liquidity alongside stricter monitoring. The Chamber called for a more flexible monetary approach aligned with fiscal discipline to revive investor confidence, stimulate economic activity and safeguard long-term macroeconomic stability.

Bangladesh Bank has unveiled a further tightened monetary policy for the first half (H1) of the current fiscal year 2025-26, signalling a continued strong focus on curbing inflation and ensuring macroeconomic stability. The central bank aims to bring inflation below 7 percent while targeting a Gross Domestic Product (GDP) growth rate of 5.5 percent. Governor Dr Ahsan H Mansur announced the new Monetary Policy Statement (MPS) at a press conference held at the Bangladesh Bank headquarters in Motijheel today (Thursday). Addressing the media, Governor Mansur said interest rates could see adjustments downwards in this July-December period, contingent on various economic indicators. He reiterated the central bank's commitment to maintaining a flexible exchange rate regime, emphasising its role in stabilising the exchange rate, building foreign reserves and mitigating external shocks. To tackle the persistent challenge of rising non-performing loans (NPLs), Bangladesh Bank has launched significant reform initiatives. These measures are designed to avert a potential crisis and ensure long-term economic stability. The Governor highlighted that the effective implementation of ongoing initiatives, coupled with forthcoming measures and robust resolutions for distressed banks based on Asset Quality Review (AQR) findings, will be crucial in restoring good governance practices and bolstering stakeholder confidence in the banking system. Bangladesh Bank likely to ease monetary policy amid interest rate shift In a key development for banking supervision, Bangladesh Bank is set to roll out a Risk-Based Supervision (RBS) system for banks starting from January 2026. This initiative aims to bring about qualitative changes in how banks are monitored and regulated, moving away from a traditional compliance-based approach. While acknowledging a recent downward trend in inflation, Governor Mansur cautioned that it remains above the target level. He mentioned the uncertainty surrounding the persistence of this deceleration, citing ongoing cost pressures from the nominal depreciation of the Taka, triggered by reciprocal tariff measures from the USA. Bangladesh Bank set to announce a new monetary policy on Thursday "Therefore, Bangladesh Bank is likely to maintain its tight monetary policy in H1FY26 to contain inflation below 7 percent, while still supporting productive economic activities," stated the monetary policy statement, underscoring the central bank's balanced approach. Deputy Governors, Executive Directors and other senior officials of Bangladesh Bank were present at the press conference.

Dhaka Stock Exchange (DSE) on Thursday wrapped up the week on a high note with turnover crossing the Tk 1,000-crore mark, despite the majority of listed companies witnessing a drop in share prices. From the opening bell, trading momentum was bullish, with the DSE crossing Tk 500 crore in turnover before noon. By the end of the session, the total turnover stood at Tk 1,063 crore — one of the highest in recent months. All three key indices ended higher. The benchmark DSEX surged 91 points, while the Shariah-based DSES added 16 points. The blue-chip DS30 index advanced by 48 points. Out of the 394 issues traded on the DSE, 150 advanced, 167 declined and 77 remained unchanged. Despite the rise in the benchmark indices, most stocks in the A, B, and Z categories ended in the red. Stocks open higher in DSE, CSE on week’s last trading day Within the A-category, which includes fundamentally strong and dividend-paying firms, 101 issues gained while 82 lost value and 37 remained flat. The block market saw transactions of Tk 30 crore across 36 companies, with Khan Brothers dominating the segment, offloading shares worth Tk 8 crore. Trust Bank topped the DSE’s gainers’ list with a 9.90% rise, while Midland Bank faced the steepest fall, shedding over 9%. CSE Follows the Uptrend The Chittagong Stock Exchange (CSE) also witnessed a positive session, with its main index climbing 281 points. Of the 229 issues traded, 107 advanced, 87 declined, and 35 remained unchanged. However, turnover dipped to Tk 11 crore from the previous day’s Tk 23 crore. DBH Finance led the CSE with a 10% gain, while Midland Bank also found itself at the bottom here, losing over 8%.

Bangladesh Bank has issued an alert warning banks and financial institutions of possible cyberattacks and urged them to take precautionary measures. In a press release signed by SM Tofael Ahmad, Additional Director of the central bank’s ICT department, the central bank said that future cyberattacks could disrupt critical information infrastructure (CII), banking and financial services, healthcare as well as public and private sector operations. Citing various sources, the central bank noted that banks and financial institutions might become targets of cyberattacks. Institutions have been urged to strengthen their systems in advance, particularly against small and mid-level threats. Bangladesh Bank likely to ease monetary policy amid interest rate shift In the notification issued on Wednesday, Bangladesh Bank recommended that all banks and financial institutions update patches on their servers, databases and systems. Additional recommendations include shutting down unnecessary portals, enforcing least privileged access, implementing the 3-2-1 strategy for data backup and restoration and enabling multi-factor authentication (MFA) for critical systems. The central bank also instructed institutions to act promptly if any irregularities are found in their IT systems. This involves deploying Security Information and Event Management (SIEM) systems and Network Intrusion Detection Systems (NIDS), among other protective measures. To detect and prevent threats, Bangladesh Bank advised the use of Endpoint Detection and Response (EDR) antivirus software, along with regular updates of threat signatures. IT teams have been directed to remain vigilant at all times, ensuring they are prepared to respond promptly in the event of a cyberattack. Trump announces 25% tariffs, penalty on India The central bank also stressed the need to report any suspicious logins, unauthorised file or data modifications to relevant authorities without delay. Banks have been asked to closely monitor external connections and to restrict and review remote access, VPNs and privileged accounts. Besides, all banks and financial institutions have been instructed to establish 24/7 monitoring of their Security Operation Centers (SOCs) with adequate manpower. Emphasising the need for operational resilience, Bangladesh Bank urged institutions to maintain a robust fallback system, including regularly updated Business Continuity Plans (BCP) and Disaster Recovery Plans (DRP).