United News of Bangladesh

Bangladesh's vital textile sector is teetering on the brink of crisis, with industry leaders vehemently protesting a newly imposed 2 percent Advance Income Tax (AIT) on imported cotton and an increased specific tax on locally produced yarn. "We cannot bear this additional tax burden," said BTMA President Shawkat Aziz Russell during an emergency press conference held at Gulshan Club on Saturday, highlighting a confluence of challenges already plaguing the industry.  BTMA Directors Khurshed Alam, Abdullah Al-Mamun, Saleuzzama Khan, Badsha Mia, and Mohammad Ayub, along with former President of the Cotton Association Hossain Mahmud, Home Textile Association representative, and BKMEA Vice President Amor Powder, were present at the press conference. The Bangladesh Textile Mills Association (BTMA) has taken a drastic measure, halting the release of cotton containers from ports and is urging the government to immediately revoke these ‘self-destructive’ policies. The BTMA leaders raised alarm without the immediate withdrawal of the 2 percent AIT and a reduction of the specific VAT on yarn from Tk 5.0 per kg, domestic textile factories face imminent closure. Strong hatchery, skilled workforce vital for sustainable growth of poultry sector He cited soaring bank interest rates (up to 15-16 percent), higher corporate taxes and persistent uncertainty regarding gas and electricity supplies as critical factors undermining their operations. They also highlighted that this AIT policy will be benefited the neighbour country export yarn to Bangladesh as they (Indian traders) getting incentive to export yarn. The association emphasised the urgent need to protect local industries and safeguard employment. They argued that while the government may view these measures as revenue-generating, they will, in reality, plunge the textile sector into deeper distress, ultimately harming the national economy. The new impositions come at a time when the textile sector is already reeling from a multitude of issues, including: · Abnormal increases in gas and electricity prices · Significant reductions in cash incentives for exports · Uninterrupted energy supply shortages · Persistent currency devaluation Garment exports to non-traditional markets mark 6.79pc increase in July-May Compounding these woes, the Finance Ordinance 2025 for the fiscal year 2025-26 has further exacerbated the situation by increasing the specific tax on locally produced cotton yarn and yarn mixed with artificial and other fibers from Tk 3 to Tk 5 per kilogram at the production stage. This particular move is expected to severely impact the domestic spinning sector.

Bangladesh Bank has introduced a new lending facility, allowing domestic individuals and institutions to secure Taka-denominated loans using foreign currency funds held in Offshore Banking Units (OBUs) as collateral. The central bank issued a circular detailing this directive on Thursday. Under the new policy, non-resident account holders can now leverage their foreign currency deposits in OBUs as collateral to obtain loans from the domestic units of banks within Bangladesh. Similarly, Bangladeshi expatriates will also be able to use their foreign currency held in OBUs as security for Taka loans in the country. According to the Bangladesh Bank notification, a "reasonable relationship" must exist between the borrower and the account holder. Valid relationships include those between expatriate Bangladeshis and their local beneficiaries, foreign shareholders, foreign investors, or foreign-owned companies. BB reserve heist: Court defers probe report submission to July 24 However, this collateral can only be used for short-term working capital loans, and banks are prohibited from charging any fees or charges for the collateral itself. The directive also stipulates that in cases of loan default, banks will have the opportunity to formalize the process and liquidate the collateral to adjust the outstanding loan amount.

Trading at both the Dhaka and Chattogram stock exchanges began with gains in indices on Wednesday, the third working day of the week, as share prices of most listed companies increased. During the first hour of trading, the benchmark index of the Dhaka Stock Exchange (DSE), the DSEX, rose by 26 points. Among the other two indices, the Shariah-based DSES gained 5 points while the blue-chip index DS30 increased by 2 points. At the start of the day, most company shares saw an upward movement in price. Out of all traded issues, the prices of 281 companies advanced, 50 declined and 55 remained unchanged. In the first hour alone, shares and units worth over Tk 180 crore were traded on the Dhaka bourse. DSE ends week in red; CSE sees mild index gain despite price fall in most stocks Meanwhile, the overall index of the Chattogram Stock Exchange (CSE) rose by 39 points. Among the 99 companies that participated in the first hour of trading on the CSE, 65 registered gains, 26 experienced price declines, and 8 remained unchanged. Early trading in Chattogram saw turnover cross Tk 1.10 crore.

After two consecutive reductions, the price of gold in the domestic market has increased again. The Bangladesh Jewellers Association (BAJUS) on Tuesday announced a hike of Tk 1,890 per bhori (11.664 grams) for 22-carat gold, setting the new price at Tk 172,126. In a statement issued on Tuesday night, BAJUS said the revised rates would come into effect from Wednesday (July 2). The association attributed the price adjustment to a rise in the cost of refined (pure) gold in the local market. Considering the overall market situation, BAJUS decided to revise the rates accordingly. As per the new rates, the price of 21-carat gold has been fixed at Tk 164,299 per bhori, while 18-carat gold will now cost Tk 140,831 per bhori. Gold made following the traditional method (Sanatani) will be sold at Tk 116,488 per bhori. Gold prices drop by Tk 4,292 within a week The sale price of gold must include a government-fixed 5 percent VAT and a minimum 6 percent making charge as determined by BAJUS. But, making charges may vary depending on the design and quality of the jewellery. Earlier, on June 28, BAJUS last adjusted gold prices, lowering them by Tk 2,624 per bhori. At that time, the price of 22-carat gold was set at Tk 170,236 per bhori.

Chevron’s new president of base assets and emerging countries, Javier La Rosa, has reaffirmed his company’s longstanding partnership with Bangladesh during meetings in Dhaka with key government officials. “I am pleased to be here in Bangladesh, engaging with our valued Government of Bangladesh stakeholders on day one of my new role,” said La Rosa. During his visit, Javier La Rosa and Eric M Walker, Chevron Bangladesh Managing Director and President, on Tuesday met Power & Energy Adviser Dr Muhammad Fouzul Kabir Khan, Mohammad Saiful Islam, EMRD Secretary, M Rezanur Rahman, Chairman Perobangla, Ashik Chowdhury, Executive Chairman of BIDA and Lutfey Siddiqi, Special Envoy to Chief Adviser for International affairs, highlighting the progress of the interim government in improving the investment climate. “We have a strong partnership with the government, Petrobangla and the people of Bangladesh, a partnership that has supported Bangladesh’s energy security and fueled economic growth for 30 years,” said La Rosa. Chevron receives due payments from Petrobangla “We have been encouraged by the approach of the interim government to resolve the current challenges, which sends a positive signal to existing and potential investors,” he said, adding, “Together, we can leverage our enduring partnership to work through any challenges and unlock new opportunities for Bangladesh’s energy sector.” Chevron, the largest US investor in Bangladesh, has been partnering with Petrobangla and the government for the past 30 years. US oil major accounts for about 60% of Bangladesh’s local natural gas production and over 80% of condensate production.

The Dhaka Stock Exchange PLC (DSE) has appointed Mohammad Asadur Rahman as its new Chief Operating Officer (COO). Before this appointment, Rahman held significant roles within the DSE. He first joined the exchange on April 15, 2010, as an Assistant General Manager. He was subsequently promoted to Deputy General Manager on April 22, 2013, and then served as General Manager and Company Secretary from April 27, 2017, until June 29, 2025. Rahman officially joined the position of COO on June 30, 2025. Budget 2025–26 market-friendly, say CPD, DSE and DBA   During his tenure as general manager and company secretary, Rahman headed several key departments, including the Board and Corporate Affairs Division, TREC Affairs Division, Legal Affairs Division, Public Relations and Publications Division, and International Affairs Division, according to a press release.

The Dhaka Chamber of Commerce & Industry (DCCI) has urged the government to formulate a comprehensive long-term master plan for the logistics sector to ensure a resilient and competitive trade ecosystem. Speaking at a seminar titled ‘Enhancing Bangladesh’s Logistic Sector for Sustainable Economic Growth’ held at the DCCI auditorium on Saturday, DCCI President Taskeen Ahmed warned that without a robust logistics framework, Bangladesh could lose its edge in global trade. “Reducing logistics cost and boosting efficiency will be critical to survive in the international market,” Ahmed said. Citing the World Bank’s Logistics Performance Index 2023, where Bangladesh ranks 88th out of 139 countries, Ahmed said logistical inefficiencies—such as port congestion, customs delays, and fragmented infrastructure—are pushing logistics costs to 15–20% of GDP, nearly double the global average. He stressed the urgent need for upgrading major ports, including Chattogram and Mongla, with modern systems like container scanners, AI-driven traffic management, and flexible tariff structures to ease trade bottlenecks. The DCCI President also recommended creating digital platforms to connect shippers and transporters, encouraging the use of warehouse management systems (WMS), and ensuring seamless multimodal connectivity across road, rail, river, and sea. Ahmed suggested scaling up platforms such as ASYCUDA and the National Single Window to streamline customs procedures and minimise corruption. He also called for policy and fiscal incentives to encourage private-sector investment in inland container depots (ICDs). Delivering the keynote, Dr M Masrur Reaz, Chairman of Policy Exchange Bangladesh, said improving logistics efficiency could bring immediate benefits. “If we reduce logistics cost by just 25%, export earnings could rise by 20%,” he noted, urging implementation of a sub-sector master plan under the forthcoming National Logistics Policy. Global economies face uncertain future amid U.S. trade tensions Dr Sheikh Moinuddin, Special Assistant to the Chief Adviser, Ministry of Road Transport and Bridges, echoed the need for an integrated, multimodal system supported by a digital “information superhighway” to make the sector future-ready. He pointed out the absence of a coherent, forward-looking logistics blueprint in the country. Other speakers also underscored institutional and investment gaps. BIWTC Chairman Md. Salim Ullah and Business Initiative Leading Development (BUILD) Chairperson Abul Kasem Khan emphasised long-term planning and proposed the formation of a separate ministry dedicated to logistics. Khan recommended branding 2026–2035 as the ‘Logistics Decade’ to accelerate reforms. Infrastructure experts highlighted the underutilisation of existing capacity and called for public-private partnership (PPP) models. Md Habibur Rahman of the Chittagong Port Authority stressed the importance of engaging private stakeholders to make the full use of the port’s projected 10-million TEU capacity by 2030. IDCOL CEO Alamgir Morshed identified the lack of long-term financing as a key constraint, suggesting the introduction of bond instruments to fund infrastructure projects. Representatives from DP World and the Asian Development Bank (ADB), including Shamim Ul Huq and Humayun Kabir, advocated for rapid digitisation and reiterated international support in implementing logistics policy. Panellists also recommended increasing the number of compliant ICDs, expanding cold-chain logistics, and enhancing inter-agency coordination. Senior officials from DCCI, BARVIDA, the Bangladesh Supply Chain Management Society and former business and port leaders also spoke at the event.

Bangladesh’s foreign exchange reserves climbed to $30.51 billion on Thursday, reflecting a renewed strength in the country’s external sector. But, officials said, under the International Monetary Fund's (IMF) Balance of Payments and International Investment Position Manual (BPM6), the reserve is calculated at $25.51 billion. The usable portion of this, according to the same method, stands at $19.80 billion, said the Bangladesh Bank officials. The boost in reserves follows a notable rise in remittance inflows through formal channels, largely attributed to the change in government after the Awami League’s departure from office. This surge in remittances has brought much-needed relief to the foreign exchange market, easing pressure on the reserve position. However, the central bank has not sold any dollars from its reserves over the past 10 months. The increase is also supported by the inflow of over $5 billion in loans for budgetary support, debt servicing, and reforms in the banking and revenue sectors. Backed by IMF, remittances, Bangladesh’s Forex reserves hit $27.3 billion Besides, the IMF is expected to release a $900 million loan, taking into account the country’s repayment capacity. A further $1.5 billion in loans from the World Bank, Asian Infrastructure Investment Bank (AIIB), Japan and the OPEC Fund is anticipated to be added to the reserves by the end of this month. The officials expect this inflow to push the total reserves to around $32 billion by month-end.

The Institute of Chartered Accountants of Bangladesh (ICAB) has elected its new leadership for the tenure of 2025-26.  N. K. A. Mobin FCA has been elected new president while Suraiya Zannath FCA, Md. Rokonuzzaman FCA, Muhammad Mehedi Hasan FCA, and Md. Moniruzzaman FCA have been elected as vice presidents. They officially assumed their charges on Tuesday and will serve for a one-year term. N K A Mobin FCA brings extensive experience, currently serving as the Executive President of Emerging Credit Rating Limited (ECRL) and as a government-nominated Board Director in Biman Bangladesh Airlines. ICAB urges govt to keep faith in CAs in clean auditing He has served on the ICAB Council since 2019 and held the position of Vice President in 2019 and 2022.  Besides, Suraiya Zannath FCA is recognised as the first woman in Bangladesh to qualify as a Chartered Accountant from ICAB and currently works as a Lead Governance Specialist (Financial Management) at the World Bank. Md. Rokonuzzaman FCA is a Partner at ACNABIN Chartered Accountants with over 17 years in public practice. Muhammad Mehedi Hasan FCA is a partner at Rahman Rahman Huq/KPMG specializing in audit, tax, and advisory work. Md. Moniruzzaman FCA, the Managing Partner of Alam M. Zaman & Co., has over 17 years of corporate experience and has actively contributed to the ICAB Chattogram Regional Committee.

Bangladesh’s foreign exchange reserves have surged to $27.31 billion, bolstered by record remittance inflows and fresh disbursements from the International Monetary Fund (IMF). Arif Hossain Khan, Executive Director and spokesperson of Bangladesh Bank, told UNB on Wednesday that the recent rise in reserves was driven by subdued import demand and increased foreign aid inflows in recent months. This marks a notable rise from the central bank’s previous update on Monday (June 23) when gross reserves were recorded at $26.82 billion. But, under the IMF’s Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6), the reserves were reported at $21.75 billion on that date. Earlier, on May 27, the country’s gross reserves stood at around $25.80 billion, while the BPM6-adjusted figure was $20.56 billion. Stocks mixed in early trade; Dhaka rises, Chattogram slips Experts said maintaining foreign exchange reserves equivalent to at least three months of import expenses is considered essential for economic stability. By that benchmark, Bangladesh remains at a critical juncture. Foreign currency reserves are widely seen as a key indicator of a country’s macroeconomic health.