United News of Bangladesh

Bangladesh could face mounting energy and financial pressures amid rising tensions between the United States and Iran, with concerns growing over possible disruptions in the Strait of Hormuz, a key route for the country’s energy imports. With 65-70 percent of the nation's energy demand met through imports—primarily Liquefied Natural Gas (LNG), crude oil, and Liquefied Petroleum Gas (LPG)—sector experts warn that a prolonged regional war could paralyze the economy. The Strait of Hormuz is the world’s most vital oil transit point. Reports indicate that Iran’s Revolutionary Guard has begun transmitting radio warnings that vessels may be barred from the passage. If the Strait is officially closed, international research agencies forecast that crude oil prices could surge to between USD $95 and $110 per barrel. For Bangladesh, this is a direct threat. The country relies on this specific maritime route for: LNG: 55 percent of total imports (mainly from Qatar and Oman). Crude Oil: 20 percent of annual demand (sourced from Saudi Arabia and UAE). LPG: Almost 100 percent of supply is Middle East-centric. How Bangladesh Will Be Affected The disruption of this supply chain is expected to trigger a domino effect across several sectors. Severe Power Shortages: As Qatar is a primary source of gas for power plants, any disruption in LNG shipments will lead to widespread load-shedding during the upcoming peak summer season. Gas Crisis: Professor M. Tamim, an energy expert and Pro-VC of Independent University, warned that "a continued war will spike oil prices and disrupt Qatar's LNG supply, creating a grave gas crisis." LPG Scarcity: The domestic market, which requires 1.2 lakh tonnes of LPG monthly, is already facing a shortage. A supply chain break would cause prices to skyrocket and supplies to vanish. Economic Strain: Rising global oil prices will put immense pressure on Bangladesh's foreign exchange reserves and increase the cost of living. Dr. Ijaz Hossain, Professor and Dean of Engineering, Specialization Energy and Environment of BUET told UNB that energy supply from the Middle East will be severely disrupted if the war prolonged. “Impact of this both energy supply and electricity generation in Bangladesh would be affected vastly as there is no immediate alternative. The national storage capacity is small for our country,” he added.   Despite the looming threat, the Bangladesh Petroleum Corporation (BPC) maintains that refined oil supplies are "safe" until June, as they are sourced from Malaysia, China, and Singapore, bypassing the Strait of Hormuz. However, the BPC Chairman, Md. Rezanur Rahman, admitted they are "closely monitoring" the crude oil situation. Petrobangla Director (Operations) Engr. Md. Rafiqul Islam echoed these concerns, stating that while they are monitoring the situation 24/7, a closure of the Qatari shipping route remains a major cause for anxiety. Energy Minister Iqbal Hassan Mahmood, has called an emergency meeting to discuss the crisis. "We are monitoring the situation and planning to explore alternative import sources to ensure Bangladesh does not fall into an energy vacuum," the Minister told reporters. Industry leaders, including East Coast Group Chairman Azam J. Chowdhury, have urged the government to establish advanced communications with alternative suppliers like Indonesia and Malaysia to mitigate the risk.  

Gold prices in Bangladesh surged by Tk 7,640 per bhori in a single day as the Bangladesh Jewellers Association (BAJUS) revised rates twice on Saturday, setting the price of 22-carat gold at Tk 268,680 per bhori (11.664 grams). BAJUS first announced a Tk 4,374 hike in the morning and later raised the price by another Tk 3,266 at night, resulting in a cumulative increase of Tk 7,640 in a day. In a late-night statement, BAJUS said the new rates were fixed considering the rise in the price of pure gold (tejabi gold) in the local market and the overall market situation. Under the revised rates, 21-carat gold will cost Tk 256,433 per bhori, while 18-carat gold has been set at Tk 219,808 per bhori. The price of gold produced under the traditional method has been fixed at Tk 179,859 per bhori. The association said a mandatory 5 percent government VAT and a minimum 6 percent making charge set by BAJUS must be added to the selling price. However, the making charge may vary depending on design and quality of jewellery. So far in 2026, gold prices have been adjusted 34 times in the domestic market, including 22 hikes and 12 reductions. Bangladesh gold price drops Tk 3,266 per bhori; 22-carat set at Tk 255,558 Silver prices were also raised alongside gold. BAJUS increased the price of 22-carat silver by Tk 116 per bhori to Tk 6,998. The new rates set 21-carat silver at Tk 6,707 per bhori, 18-carat silver at Tk 5,715 per bhori, and traditional-method silver at Tk 4,316 per bhori. In 2026, silver prices have been adjusted 20 times so far, with 13 increases and seven decreases.  

Commerce Minister Khandaker Abdul Muktadir on Thursday said the recent hike in liquefied petroleum gas (LPG) prices at the consumer level is driven by retailers, not importers. “Importers are not increasing prices. Retail traders are responsible for the price escalation in the market,” the minister told reporters after a meeting with LPG importers at the Commerce Ministry conference room. The minister said the government discussed pricing and supply issues in detail with importers and noted their concerns. To prevent market manipulation at the retail level, Muktadir said, monitoring will be intensified through local administrations in the coming days. The Bangladesh Energy Regulatory Commission (BERC) had initially fixed the retail price of a 12kg LPG cylinder at Tk 1,356, later revising it down to Tk 1,341 on February 24. However, cylinders are currently being sold in the market at Tk 1,700–1,800. Responding to a question on when LPG would be available at the BERC-set price, the minister said prices would eventually come down to the previous level, though importers have sought a price review. “The ministry will consider the matter based on data and information. No one can run a business at a loss. However, no decision has been taken to increase LPG prices.” In January, the government allowed the state-run Bangladesh Petroleum Corporation (BPC) to import LPG under a government-to-government (G2G) arrangement to ease supply constraints. But the initiative has yet to yield visible impact in the market due to limited storage capacity. “The main problem for BPC is the lack of storage facilities. Without adequate storage, it cannot proceed with imports,” the minister said, adding that plans are underway to gradually enhance LPG storage capacity. The government may also utilise storage facilities of private importers. Although 33 companies have permission to import LPG in Bangladesh, only around 10 are currently active. The minister said many importers became inactive following the August 5, 2024 developments, creating a supply gap in the market. Muktadir pointed out that reliance on the spot market instead of future contracts contributes to price volatility. Importers are additionally facing banking-related complications, he said, expressing the hope that the LPG market would stabilise soon after addressing these issues.

Bangladesh Bank’s newly appointed Governor Mostaqur Rahman on Thursday hinted at a possible cut in the central bank’s policy rate and pledged support to revive factories shuttered amid political unrest under the interim government. On his first day in office, a day after his appointment, the new Governor held a meeting with deputy governors and executive directors at Bangladesh Bank to outline his vision and priorities. "The Governor emphasised maintaining macroeconomic stability while steering the economy towards inclusive growth," central bank spokesperson Arief Hossain Khan told journalists. “The Governor stressed the need to keep macroeconomic stability intact and move towards inclusive growth to generate employment. High interest rates are a major barrier to employment generation and investment. He has addressed the necessary course of action in this regard,” Arief said. The Governor also assured all-out cooperation to restart industrial units that were closed during the period of political instability. Bangladesh Bank will extend policy support, facilitate required financing and strengthen coordination within the banking sector to help resume production, which is expected to boost employment and output, the spokesperson added. “Containing inflation and ensuring price stability within consumers’ purchasing capacity will remain a priority, Governor noted the issue of elevated lending rates that are constraining investment will be reviewed for appropriate action,” Arief said. To ensure good governance at the central bank, Governor instructed that decision-making processes be fully rule-based and non-discriminatory. He also decided to enhance the delegation of authority to expedite operations by empowering officials at different levels with greater decision-making capacity. Mostaqur joined the central bank as the 14th Governor on Thursday, succeeding Ahsan H Mansur. He is the first full-fledged businessman to assume the top position at the central bank, unlike his predecessors who were career bureaucrats or professional economists. Responding to questions about his background, the spokesperson said, “A Governor’s academic discipline is not the main issue. He has assumed office through due process. The Governor’s core responsibility is to formulate monetary policy. It is not rocket science. There is a research team to assist him.” Arief also said the Governor expressed reluctance to engage in regular media briefings. “The Governor holds the highest position in a regulatory body. His words carry weight. He will not brief journalists every day. However, he may speak at formal briefings when necessary.” The Governor underscored the importance of stronger coordination with other regulatory bodies and the Ministry of Finance to tackle economic challenges through a unified approach, and called for collective efforts to uphold the central bank’s reputation and strengthen the economy. Later in the afternoon, the Governor visited the Ministry of Finance to meet Finance Minister Amir Khosru Mahmud Chowdhury, marking his first meeting with the minister after assuming office.    

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.