United News of Bangladesh

Net Foreign Direct Investment (FDI) inflows into Bangladesh surged by 39.36 percent in 2025, signaling a strong recovery and growing investor confidence despite global economic challenges and domestic transitions. According to the latest FDI survey by the Bangladesh Bank, net FDI inflows rose to $1.77 billion in 2025, up from $1.27 billion recorded in 2024. The Bangladesh Investment Development Authority (BIDA) shared the data on Thursday (May 14). BIDA highlighted that reinvested earnings and inter-company loans were the primary drivers behind this notable growth. Reinvested skyrocketed by 318.25 percent, reaching $434.10 million in 2025, compared to $103.79 million in 2024. Inter-company loans increased by 25.68 percent, rising to $781.68 million from $621.96 million in the previous year. Witnessed a modest growth of 1.84 percent, totaling $554.64 million. This upward trend comes at a time when global greenfield project announcements declined by 16 percent in 2025. BIDA noted that Bangladesh’s ability to attract higher FDI despite foreign exchange pressures, global shocks, and domestic uncertainties reflects a resilient investment climate. It shows a positive signal amid challenges. Commenting on the development, BIDA Executive Chairman Ashik Chowdhury stated that the 39.36 percent growth in net FDI is a highly positive indicator, especially since developing economies have felt the brunt of a global slowdown in new investment projects. "While the investment volume is still below the country's actual potential, this growth is significant in the post-political transition period," he said. The global situation remains uncertain, but Bangladesh is intensifying its preparations to become more competitive in attracting larger investments in the future.

Bangladesh Bank (BB) has relaxed the limits for single borrower and large loan exposures to facilitate international trade finance for businesses and industries. According to a recent circular issued by the central bank, the previous restriction limiting aggregate principal exposure (funded and non-funded) to a single person, counterparty, or group at 15 percent of a bank’s capital has been postponed until June 30, 2028. Until that date, the exposure limit has been increased to 25 percent of the bank's capital. The central bank has also introduced a reduced conversion factor for non-funded exposure. A conversion factor of 0.25 (25 percent) will now be applied to non-funded exposure, down from the previous 0.50 (50 percent). This reduced factor will also be used to determine a bank's Large Loan Portfolio Ceiling. The relaxation on the conversion factor will remain in effect until June 30, 2027. Following this period, banks are required to gradually increase the factor as follows: To 0.30 (30 percent) by December 31, 2027. To 0.40 (40 percent) by December 31, 2028. To 0.50 (50 percent) by December 31, 2029. From January 1, 2030, the original regulations will be fully reinstated. Furthermore, the central bank has revised the Large Loan Portfolio Ceiling based on a bank's percentage of classified loans. Under the new guidelines, banks with a classified loan ratio of 10 percent or less can maintain a large loan portfolio up to 50 percent of their total loans and advances. For banks where classified loans exceed 30 percent, this ceiling is restricted to 30 percent. However, the directive maintains that a bank's aggregate large loan exposure must not exceed 600 percent of its capital at any given time. These replacement clauses regarding portfolio ceilings will remain effective until December 31, 2027. The BB stated that these directives, issued under the Bank Company Act, 1991, come into force with immediate effect, while other instructions from the original 2022 circular remain unchanged.

The Shariah compliance government bonds ‘Sukuk’ gets popularity among the investors in Bangladesh as 12.30 times oversubscribed for its 8th draw. The auction for 8th Bangladesh Government Investment Sukuk (CIBRR-1), aimed at constructing important bridges on rural roads, witnessed this massive response today (Thursday). The Debt Management Department of Bangladesh Bank organised the auction, which offered a 7-year Shariah-compliant 'Ijarah Sukuk' with a face value of Tk 5,900 crore at an annual rental rate of 10.40 percent. According to Bangladesh Bank, Shariah-based banks, financial institutions, Islamic windows of conventional banks, individual investors, and provident funds submitted bids totaling Tk 72,597.94 crore. Due to the overwhelming demand, the Sukuk was allocated among investors on a ratio basis. Notably, this marks the first time the auction was conducted using Bangladesh Bank’s in-house Shariah Securities Module (SSM) software. The issuance of this Sukuk provides Shariah-compliant banks and financial institutions with a vital tool for liquidity management. Key highlights include-Banks and financial institutions can use these Sukuks to maintain their Statutory Liquidity Reserve (SLR), Islamic banks and conventional banks with Islamic windows can access the ‘Islamic Banks Liquidity Facility (IBLF)’ from Bangladesh Bank by using the Sukuk as collateral and starting May 14, 2026, individual and institutional investors can buy or sell these Sukuks in the secondary market. Under the individual investor, provident fund, mutual fund, and deposit insurance categories, a total of Tk 441.62 crore worth of Sukuk was allocated against 1,011 successful bids. The funds raised through this project, titled "Construction of Important Bridges on Rural Roads (1st Revised) (CIBRR-1)," are expected to play a significant role in improving rural infrastructure and the socio-economic conditions of the project areas.

Bangladesh Bank has reduced the maximum penalty interest rate on overdue loans to 0.5 percent, aiming to boost investment and productivity amid the prevailing global economic challenges. According to a circular issued by the Banking Regulation and Policy Department (BRPD) on Wednesday, the central bank lowered the penalty interest cap from 1.5 percent to 0.5 percent. The directive, signed by BRPD Director Gazi Md Mahfuzul Islam, revises earlier guidelines issued in May 2024 on market-based interest rate determination. Under the revised rules, banks may now charge a maximum of 0.5 percent penalty interest on overdue loans or instalments. For continuous or demand loans, the penalty will apply to the entire outstanding amount, while for term loans, it will apply only to the overdue instalment. The central bank said the decision was taken in view of the “prevailing global economic situation” and the need to “increase investment and productivity”. The new instruction takes immediate effect, the circular said. It also clarified that all other provisions of BRPD Circular No. 10/2024 will remain unchanged, including the validity of actions already taken under the previous framework.

Turkish business leaders and Bangladesh's leading trade body DCCI explored new avenues for bilateral investment Wednesday as a seven-member delegation from Turkey met office bearers of the Dhaka Chamber of Commerce & Industry (DCCI) in the capital. The delegation was led by Burak Basegmezlar, Vice President of the Turkish Electro Technology Exporters' Association (TET), and attended by Turkey’s Ambassador to Bangladesh, Ramis Şen. Welcoming the visitors, DCCI President Taskeen Ahmed said Bangladesh and Turkey share longstanding friendly ties and expressed hope that such high-level business exchanges would give fresh momentum to bilateral trade. He disclosed that total bilateral trade between the two countries in FY 2024–25 stood at approximately USD 1.05 billion, with Bangladesh's imports from Turkey amounting to USD 416.76 million and exports reaching USD 634.53 million. “Turkish entrepreneurs have already invested USD 74.05 million across various sectors in Bangladesh.” Taskeen invited Turkish investors to explore both joint ventures and sole investments in sectors including readymade garments, leather and footwear, jute goods, agro-processed products, pharmaceuticals, light engineering, ICT services and software, home textiles, and consumer goods. Basegmezlar said Bangladesh presents strong demand for electronic equipment, home appliances and generators, and noted that Turkish investors are actively interested in entering these segments through both independent and collaborative arrangements. He announced that a Turkish business delegation from the electronics and electrical equipment sector is planning to visit Bangladesh in November, during which B2B sessions between private sector representatives of both countries would be held to unlock investment potential and deepen trade ties. Ambassador Şen underscored the considerable scope for expanding bilateral trade and said stronger business-to-business linkages are key to realising that potential. He noted that DCCI is well-placed to serve as an effective bridge between the private sectors of the two countries. DCCI Senior Vice President Razeev H Chowdhury and Vice President Md. Salem Sulaiman, among others, were present at the meeting.

Bangladesh Bank has signaled its intent to support the revival of closed industrial units through a strategic refinancing package, but has firmly ruled out blanket bailouts for non-viable or willfully defaulted businesses. The decision came following a high-level meeting between central bank officials and a delegation of industrial stakeholders at the Bangladesh Bank headquarters on Monday. Bangladesh Bank Governor  Md. Mostaqur Rahman chaired the meeting. During the meeting, stakeholders raised concerns about the growing number of shuttered factories. In response, the central bank clarified that while a refinancing package reportedly around Tk 40,000 crore is being considered, the support will be strictly merit-based.   "We need to investigate why these industries closed down—whether it was due to power shortages, lack of buyers, or market fluctuations," said Abdul Hai Sarker after the meeting. He is the Chairman of Bangladesh Association of Banks (BAB) and also Chairman of Purbani Group, who joined the meeting as a representative of the industrial delegation. "The Governor has assured us that only 'genuine' businesses facing temporary working capital shortages will be supported to ensure production resumes and defaults are avoided,” said BAB Chairman. The discussion also touched upon the controversial Section 18 (Ka) of the Bank Resolution Act. Business leaders expressed "deep apprehension" regarding the potential implementation of this law, fearing it might be misused to allow former directors—who were allegedly involved in past bank looting—to regain control of financial institutions. However, central bank sources indicated that the stringent conditions attached to the act would make it practically impossible for such controversial figures to meet the criteria for return. Stakeholders urged the government to handle this legislative matter with extreme caution to protect the sector from further "looting cultures." The central bank also reiterated that the planned merger of five specific banks will proceed without change. Despite initial skepticism from some quarters, the Governor emphasized that the merger is essential to put the banking sector back on "the right footing." Industrialists urged the government and the central bank to consult with general stakeholders before finalizing major policy interventions. "We are elected representatives and industrialists; we are here to share our fears and ground realities. Policy-making is more effective when it includes those who are actually operating in the sector," in response to a query of journalists, a representative of businessmen said.

In a major push to decentralise sustainable industrialisation, Bangladesh Bank has established a special Tk 1,000 crore refinancing fund dedicated to making rural and local industries environment-friendly. Under this scheme, entrepreneurs will be able to access credit at an interest rate of maximum 5 percent. The Sustainable Finance Department of the central bank issued a circular in this regard on Monday. According to the directive, this amount has been carved out of the central bank's existing Tk 5,000 crore Green Transformation Fund (GTF) specifically to support grassroots and localised industrial growth. The fund is designed to finance the import of environment-friendly machinery or the purchase of locally manufactured green equipment. Eligible sectors for financing include renewable energy (installation of solar and wind power systems), resource management (energy efficiency, water conservation, and wastewater management), waste management (recycling activities and waste-to-energy projects) and work environment (-improving factory safety and occupational health standards). The central bank has structured the fund to be highly attractive for both lenders and borrowers. The borrower interest rate has been capped at a maximum of 5 percent. Participating banks will receive funds from the central bank at a mere 1 percent interest. An individual entrepreneur can borrow up to Tk 5 crore and banks can provide up to 80 percent of the total import or purchase cost. The loan term ranges from two to five years, including a maximum six-month grace period. Eligibility and Mandatory Green Criteria To ensure the funds achieve their environmental goals, the central bank has set a mandatory condition: at least 10 percent of the total electricity used in the financed project must be sourced from renewable energy, such as solar power. Eligible Banks All state-owned commercial banks are eligible to distribute these loans. Private and foreign commercial banks must maintain a non-performing loan (NPL) ratio below 20 percent to participate. Loan defaulters (individuals or institutions) are strictly prohibited from accessing this facility. Impact on Local Industries Bangladesh Bank believes this initiative will significantly bolster the capacity and competitiveness of local industries. By lowering the cost of green technology, the fund is expected to accelerate the transition of small and medium-scale rural enterprises into sustainable, resource-efficient entities, aligning with the national goal of achieving a green economy.

In a significant move to ease international travel for Bangladeshis, Bangladesh Bank (BB) has allowed the remittance of mandatory visa bonds and refundable security deposits required by foreign embassies, high commissions, and other visa authorities. The central bank issued a circular on Sunday, instructing Authorized Dealer (AD) banks to facilitate such payments on behalf of visa applicants. According to the new directive, banks are now permitted to issue international or virtual cards in the name of the applicant, specifically for this purpose. These cards can be pre-loaded with the necessary bond or security deposit amount. Furthermore, existing international cardholders can reload their cards under their travel quota to cover these specific costs. However, the central bank emphasized that these funds must exclusively be used for visa-related financial requirements. A key clause in the circular mandates the swift repatriation of these funds once the relevant embassy or authority refunds the bond or security deposit. “Banks are required to maintain separate registries to track these transactions. They must regularly monitor and report the progress of fund returns to the central bank,” stated in the circular. Before remitting any funds, banks must verify several essential documents, including-a valid passport of the applicant, a formal requirement letter or invoice from the embassy or relevant authority, and references or acknowledgment letters related to the visa application. The central bank clarified that these transactions can be processed through Exporter’s Retention Quota (ERQ) accounts, Resident Foreign Currency Deposit (RFCD) accounts, or international cards issued against such accounts. Industry insiders believe this decision will remove a major bottleneck for Bangladeshi travelers, students, and professionals applying to countries that require financial guarantees as a prerequisite for visa approval, making the overall process more transparent and accessible.

Dhaka Chamber of Commerce & Industry (DCCI) on Monday urged the government to prioritise the development of inland waterway infrastructure to reduce the cost of doing business, calling for planned dredging, riverbank recovery and private sector involvement under a Public-Private Partnership (PPP) framework. DCCI President Taskeen Ahmed made the call during a meeting with Water Resources Minister Md Shahiduddin Chowdhury Anee at the Secretariat. Taskeen Ahmed said as a riverine nation, Bangladesh's inland waterways have historically been the most cost-effective means of transporting industrial raw materials and finished goods, yet their full potential remains underutilised due to siltation and illegal river encroachment. “We need to prioritise riverbank recovery, planned dredging and necessary infrastructural development so that the business community can benefit from cost-effective and efficient trade logistics,” he said. The DCCI President expressed optimism about the government's plan to excavate 20,000 kilometres of canals over the next five years, saying the initiative will significantly boost inland water transport, ease business costs and simultaneously improve irrigation, agricultural productivity and overall economic growth. He also highlighted the strategic value of an approximately 112-kilometre circular waterway connecting the Buriganga, Turag, Balu, Shitalakkhya and Dhaleshwari rivers around the capital, describing it as a viable alternative transport corridor that could help ease Dhaka's chronic traffic congestion. Responding positively, Minister Anee reaffirmed the government's commitment to sustainable development of inland waterways and said several initiatives have already been set in motion. He called on the private sector to actively participate in the nationwide canal excavation programme, noting that its successful completion will foster environment-friendly transport networks and stimulate local economic activity across the country. DCCI Senior Vice President Razeev H Chowdhury, Vice President Md Salem Sulaiman and acting Secretary General Dr AKM Asaudzzaman Patwary were also present at the meeting.    

Bangladesh Bank has directed all commercial banks to set up dedicated counterfeit currency detection booths at cattle markets across the country to ensure the security of large-scale cash transactions during the upcoming Eid-ul-Azha. The central bank issued a circular in this regard recently asking banks to deploy note-counting and currency authentication machines to prevent the circulation of fake notes during the peak sacrificial animal trading period. According to the directive, each commercial bank must appoint a focal coordinating officer for the operation and submit their names, designations and contact details to Bangladesh Bank by May 17. For cattle markets in Dhaka North and South City Corporations, specific banks have been assigned individual markets to operate booths until the night before Eid. Outside Dhaka, Bangladesh Bank’s regional offices will coordinate the arrangement, while Sonali Bank will lead coordination in districts where the central bank has no branch presence. The circular also instructed that the booths must provide uninterrupted service throughout the trading period up to Eid night. Banks have been asked to maintain close coordination with local administrations, city corporations, municipalities and law enforcement agencies to ensure smooth operations and security. In Dhaka North, banks including Islami Bank, Shimanto Bank, AB Bank, National Bank, Al-Arafah Islami Bank, Eastern Bank, IFIC Bank, Meghna Bank, United Commercial Bank, City Bank, Agrani Bank, BRAC Bank, Dutch-Bangla Bank, Bank Asia, Jamuna Bank, Shahjalal Islami Bank and BASIC Bank have been assigned responsibilities. In Dhaka South, 19 banksincluding Premier Bank, Uttara Bank, Dutch-Bangla Bank, Bangladesh Krishi Bank, Dhaka Bank, Rupali Bank, Janata Bank, One Bank, Modhumoti Bank, Community Bank, Pubali Bank, Mercantile Bank, NCC Bank and Sonali Bank—have been deployed to operate detection booths across 13 designated cattle markets. Central bank officials said the initiative is aimed at safeguarding financial transactions during the festive season and ensuring confidence among buyers and sellers in a cash-intensive market.