United News of Bangladesh

Dhaka Chamber of Commerce and Industry (DCCI) President Taskeen Ahmed on Wednesday called for a long-term, performance-based public-private partnership (PPP) framework to reverse decades of decline in Bangladesh's rivers and canals, warning that continued neglect is costing the economy billions of dollars annually in lost efficiency and congestion. Taskeen made the call while presenting a paper titled ‘Revitalising Circular Waterways and Inland Trade’ at a seminar held at the DCCI Auditorium in Motijheel. He said Bangladesh's more than 1,415 rivers and a historical canal network of roughly 24,000 kilometres form the backbone of the country's economy, but over 55% of canals are now silted or encroached. Dry-season navigability has shrunk to 3,865 kilometres, down from 6,000 kilometres during the monsoon, while 77 percent of freight remains road-dependent despite waterways offering a cheaper and cleaner alternative, he noted. Citing government data, Taskeen said the Ministry of Water Resources has been allocated Tk 10,533 crore, with FY26 canal excavation and irrigation targets so far achieved at 42.77 percent. “A 180-day national programme targeting 1,204 kilometres of excavation is expected to be completed by June, alongside an additional 1,500 kilometres under relief-based re-excavation schemes,” he added. The DCCI chief referred to a broader five-year plan, part of BNP's election manifesto for the 13th national parliamentary election, envisaging restoration of 20,000 kilometres of rivers and canals and revival of 520 disappeared rivers, with an initial rollout already covering 54 districts. Highlighting the Sahapara pilot project as a model, Taskeen said the initiative has irrigated 1,200 hectares, lifted crop yields by 60,000 tonnes and benefited around 350,000 people by storing monsoon rainwater for dry-season irrigation, reducing farmers' reliance on costly deep-tube well electricity. He said inland waterways cost 55-60 percent less than road transport for cargo movement between Dhaka and Chittagong and are four to eight times more energy-efficient per ton-kilometre, yet carry only about 7 percent of national freight by weight-distance. Taskeen described the 112-kilometre Dhaka Circular Waterway as a stalled opportunity, citing encroachment of the Tongi Canal, failed feeder services for earlier waterbus routes, and funding priorities skewed toward mega-projects. He said shifting just 20 percent of truck freight to the corridor could ease Dhaka's estimated $3-7 billion in annual congestion losses, pointing to the Hatirjheel water taxi service, launched in 2016, as proof of concept for urban waterway revival. The DCCI president identified rapid re-siltation, land encroachment, inadequate long-term financing, fragmented governance among agencies such as BWDB, LGED and BIWTA, environmental safeguards, and climate variability as the key challenges to sustainable waterway restoration. He put forward a nine-point roadmap, including shifting from short-term dredging contracts to five-to-ten-year performance-based PPP agreements, a unified water-trade legislation aligned with the National Logistics Policy 2025, GIS-based digital monitoring to prevent encroachment, agro-logistics hubs at canal junctions, and formal recognition of trade bodies as co-governance partners in waterway policymaking.

The International Monetary Fund (IMF) has recommended introducing a single Taxpayer Identification Number (TIN) in Bangladesh as part of sweeping reforms aimed at modernising the country's revenue administration, improving transparency and curbing tax evasion. Under the proposed system, income tax, VAT, customs, import-export, tax deduction at source and other financial data of an individual or institution will be accessible and analyzable on a single platform. The recommendation came during a meeting on Tuesday between an IMF delegation and senior officials of the National Board of Revenue (NBR) including NBR Chairman Ahsan Habib, according to sources familiar with the discussion. An IMF fact-finding mission, led by Bangladesh Mission Chief Iva Petrova, is currently visiting Bangladesh to hold a series of discussions with the government on revenue administration reforms, tax collection enhancement, digital modernization, and broader economic reforms. The IMF noted that this integration would enhance transparency and efficiency in tax administration, streamline tax evasion detection, and make taxpayer services faster and more effective. Currently, Bangladesh uses electronic Taxpayer Identification Numbers (e-TIN) for income taxpayers and Business Identification Numbers (BIN) for VAT-registered entities. The IMF observed that maintaining two separate identification numbers causes taxpayer information to remain scattered across different databases, preventing a consolidated view and effective analysis of a taxpayer's full economic activities. The IMF highlighted that a single identification system would consolidate income tax returns, VAT returns, import-export data, tax deduction at source, banking transactions, and other tax-related information into one platform. This would facilitate risk-based auditing, accelerate tax evasion detection, and significantly boost administrative efficiency. During the meeting, IMF representatives said the storage of income tax, VAT, and customs data in separate databases remains a major limitation for the NBR. Implementing an integrated taxpayer identity system would improve data verification, risk assessment, and tax collection. It would also allow taxpayers to access all tax-related services using a single identification number instead of multiple numbers, they said. The IMF also emphasised full digital transformation and automation, recommending that the NBR's database be automatically integrated with other government bodies, including the Bangladesh Investment Development Authority (BIDA), the Registrar of Joint Stock Companies and Firms (RJSC), Bangladesh Bank, land registration authorities, the Office of the Chief Controller of Imports and Exports, Customs, and the Ministry of Commerce. Furthermore, the IMF stressed implementing analytics-based compliance management, risk-based auditing, online income tax return filing, e-payments, and complete digitisation of tax deduction at source records. According to the IMF, several countries have already implemented single taxpayer identification systems including India’s Permanent Account Number (PAN), Nepal’s PAN, Hong Kong’s Business Registration Number (PAN), Singapore’s Unique Entity Number (UEN), Australia’s Australian Business Number (ABN), and New Zealand’s IRD number. Professor Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD), said a single taxpayer identification number would benefit both tax administration and taxpayers. Consolidating registration, tax deduction, business operations, and income tax information under one number would enhance NBR's coordination capacity, reduce opportunities for tax evasion, and simplify service access for taxpayers, he said. NBR officials acknowledged that various reform activities are currently underway to modernise the revenue administration, with automation, data integration, and digital taxpayer services prioritised in the medium- and long-term revenue strategies. Officials said while the IMF has recommended merging income tax and VAT identification numbers since 2005, immediate implementation is challenging under current national realities. They said expanding the income tax and VAT networks, integrating databases, and strengthening technological infrastructure must occur before gradually considering a single identification system.

Prime Minister's Finance and Planning Adviser Dr Rashed Al Mahmud Titumir on Tuesday said the government is developing a new growth model, 'Invest Bangladesh', aimed at attracting greater investment in the industrial and manufacturing sectors to support sustainable economic development. "Ensuring policy continuity and stability to attract investment, cutting red tape, ensuring access to finance and energy, improving multimodal and seamless connectivity, and creating productive and sustainable jobs are among the government's priorities," he said. The adviser was speaking at a discussion organised by the National Skills Development Authority (NSDA) in the capital, marking World Youth Skills Day 2026, which was observed on July 15 under the theme “Skills for a Shared Future.” He said developing skilled, productive and internationally competitive human resources is essential for Bangladesh's economic growth and development. Titumir said education and training curricula need to be modernised and new overseas labour markets need to be explored to bring young people who are outside employment, education and training back into the mainstream. He stressed the need to strengthen initiatives to send skilled workers abroad, including the Middle East, by providing internationally recognised qualifications and skills certificates. The adviser also called for greater opportunities for reskilling and upskilling to meet the changing demands of the global labour market. He underscored the importance of increasing women's participation in the formal workforce and making the best use of the country's remaining demographic dividend.

Turkish textile major Sanko is keen to invest around $300 million to establish an integrated textile manufacturing facility in Mirsarai industrial zone. The investment plan was discussed at a meeting between a Sanko delegation and Minister for Commerce, Industries, and Textiles and Jute Khandaker Abdul Muktadir at the Secretariat on Tuesday. State Minister for Textiles and Jute Md Shariful Alam was also present. The Sanko delegation said the company plans to establish a large-scale production facility in Bangladesh based on its existing business ties with the country and growing demand from international buyers. The Turkish company currently supplies textile products to Bangladesh from its facilities in Turkey. However, it now wants to expand its production base locally, citing Bangladesh’s growing market, skilled workforce and strong export potential. Under the proposed investment, Sanko plans to establish facilities for fabric production, fabric processing and manufacturing of value-added textile products. The initiative is expected to strengthen Bangladesh’s capacity to produce high-quality textile products and help the country move further up the value chain in the ready-made garment and textile sectors, the company representatives said. They said Sanko already has several important international buyers in Bangladesh. The delegation said potential locations for the project have already been identified and discussions have taken place with prospective local partners. The company plans to begin further activities within the next few months, subject to necessary government approvals and the availability of required infrastructure. Once construction begins, the facility is expected to be operational within 12 to 18 months, the representatives said. The Sanko delegation sought government support in ensuring energy facilities, gas connections, uninterrupted electricity supply and necessary approvals for the project. Minister Khandaker Abdul Muktadir highlighted Bangladesh’s investment potential and assured the Sanko delegation of the government’s necessary cooperation. He said the government is encouraging foreign investment in the country’s industrial sector and working to provide investors with the necessary facilities and support.    

Global rating agency S&P Global Ratings has revised Bangladesh’s long-term sovereign credit rating outlook from ‘Stable’ to ‘Negative’, citing persistent vulnerabilities in the banking sector, limited fiscal flexibility, energy market volatility, and growing trade risks. In an assessment report released on Monday, S&P warned that financial sector imbalances, constrained government revenue generation, and broader global economic uncertainties could prolong Bangladesh’s economic recovery and elevate macroeconomic risks in the coming years. The credit rating agency noted that Bangladesh continues to face structural headwinds, including low per capita income, weak revenue collection capacity, high debt service costs, and lingering administrative and institutional bottlenecks. According to S&P, the country’s external stability will depend heavily on remittance inflows, a sustained recovery in ready-made garment (RMG) exports, and continued financial support from international development partners. Growth forecast capped at 4.5 percent: S&P has projected Bangladesh’s economic growth to average around 4.5 percent over the next three years—lower than historical trends. The agency attributed the subdued growth forecast to ongoing restructuring efforts aimed at addressing high non-performing loans (NPLs) in the banking system, residual impacts of the 2024 political crisis, and uncertainties surrounding energy supply and global RMG demand. "High inflation and energy supply constraints continue to squeeze consumer purchasing power, slowing the domestic demand recovery," the report highlighted, adding that while Bangladesh maintains a competitive edge in RMG due to abundant labor, export momentum in FY2025–26 remained sluggish. Rising external and trade headwinds: The rating agency also flagged international trade policy shifts as a key challenge, noting that a recently introduced US tariff policy—imposing a 10% tariff on goods from several countries, including Bangladesh—presents new uncertainties for the export-oriented economy. S&P warned that over the next 12 to 18 months, lingering geopolitical conflicts in the Middle East, volatility in global energy prices, and structural strain in domestic banks could further weaken Bangladesh's growth trajectory and external liquidity position. The report cautioned that a further downgrade of the sovereign rating could occur over the next two to three years if long-term growth decelerates significantly relative to peer economies, or if external pressures—such as a widening current account deficit or declining foreign exchange reserves—worsen. Earlier in May, peer credit agency Fitch Ratings similarly downgraded Bangladesh's sovereign outlook from 'Stable' to 'Negative', citing elevated global economic risks and regional uncertainties.  

Remittance inflow to Bangladesh reached $2,524 million ($2.52 billion) in the first 27 days of July, the first month of fiscal year 2026-27, according to the latest data from Bangladesh Bank. This reflects a 20.2 percent year-on-year growth compared to the $2.10 billion received during the corresponding period (July 1-27) of the previous FY2025-26. Central bank figures showed that Bangladeshi expatriates living in different countries sent home $87 million on July 27 alone. The continued robust momentum in the remittance inflow through formal banking channels at the start of the new fiscal year is expected to bolster the country's foreign exchange reserves and help maintain macroeconomic stability. Bangladesh received a record $35.56 billion in remittances in FY26, the highest remittance earnings so far in a single fiscal year. The year-on-year growth was a 17.3 percent increase compared to $30.33 billion in FY25.  

Hossain Sadat has joined the Bangladesh Securities and Exchange Commission (BSEC) as a commissioner, completing the regulator's full panel of commissioners. Sadat assumed office on Tuesday after being appointed for a four-year term with approval from the Ministry of Finance, according to a press release issued by the commission. A veteran corporate professional with nearly three decades of experience, Sadat has worked extensively in corporate governance, regulatory strategy, financial management, sustainable development, corporate communication, and audit and assurance. His career spans leadership roles at Grameenphone, Shell Oil and Gas, Kean Energy, and Rahman Rahman Huq (KPMG Bangladesh). He most recently served as president of the Institute of Chartered Secretaries of Bangladesh (ICSB). He has also held board and council positions at the Bangladesh Institute of Capital Market (BICM), the Corporate Secretaries International Association (CSIA), and ICSB. Sadat completed executive-level management training from the London Business School in the United Kingdom. With his joining, the BSEC's commissioner panel is now complete.

Bangladesh Jewellers Association (Bajus) on Tuesday reduced gold prices a day after raising them. In a notice issued in the morning, Bajus said the price of 22-carat gold has been cut by Tk 2,216 per bhori, bringing the new price, inclusive of VAT, to Tk 2,20,858. The revised rates came into effect from 10am. According to the new price chart, 21-carat gold will now cost Tk 2,10,943 per bhori, down by Tk 2,100, while 18-carat gold has been reduced by Tk 1,750 to Tk 1,81,200 per bhori. The price of traditional (Sanatan) gold has been cut by Tk 1,458 to Tk 1,48,016 per bhori, the notice added. Bajus said the new prices will remain effective at all jewellery establishments until further notice, though making charges will vary depending on the design of the ornament. Since VAT is included in the selling price of gold and silver ornaments, customers cannot be charged VAT separately, it said. The organisation also noted that its existing rules on making charges, VAT and stone deductions will remain unchanged for the exchange and purchase of ornaments. On Monday, Bajus raised the price of 22-carat gold by Tk 2,216 per bhori, setting it at Tk 2,23,074, inclusive of VAT. Silver prices were also revised downward alongside gold. The price of 22-carat silver ornaments was cut by Tk 59 to Tk 4,607 per bhori. Similarly, 21-carat silver was reduced by Tk 175 to Tk 4,374, 18-carat silver by Tk 116 to Tk 3,791, and traditional silver by Tk 116 to Tk 2,858 per bhori.

Access to finance remains the most severe bottleneck in Bangladesh's business environment, scoring lowest among 11 pillars assessed under the Bangladesh Business Index (BBX) 2024-25, policymakers, bankers and business leaders said at a round-table discussion here on Monday, calling for a diversified, less bank-dependent financial system to support the private sector. The BBX 2024-25 recorded a score of 40.07 out of 100 for access to finance, despite a 12-point improvement over the previous year, underscoring that the problem persists even as reform efforts gain traction. The event, titled "Access to Finance in Bangladesh: Building a More Conducive Financial System for the Private Sector," was jointly organised by Policy Exchange Bangladesh and the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), with support from the Australian government's Department of Foreign Affairs and Trade, at the MCCI Gulshan office. Delivering the keynote, Country Managing Partner of PricewaterhouseCoopers Bangladesh (PwC) Shams Zaman said credible resolution mechanisms form the foundation for rebuilding confidence and extending fresh credit, adding that Bangladesh needs long-term capital that does not rely solely on banks. He proposed that the country's guarantee window be turned into an autonomous, professionally managed institution to support a more diversified financial system. A panel discussion, moderated by Chairman and Chief Executive Officer of Policy Exchange Bangladesh Dr M Masrur Reaz, brought together voices from policy, banking and industry, including Managing Director of Shasha Denims Ltd Shams Mahmud, President of the American Chamber of Commerce in Bangladesh (AmCham) Syed Mohammad Kamal, Additional Managing Director and Head of SME Banking at BRAC Bank PLC Syed Abdul Momen and Head of Multinational Wholesale Banking at HSBC Bangladesh Andalib Mirza. Mahmud said post-pandemic and political shocks remain insufficiently addressed, with manufacturers facing severe financing and cash-flow pressures worsened by higher gas prices. Kamal said SMEs lack the institutional access enjoyed by large firms, calling for a coordinated approach involving the central bank, judiciary and other stakeholders. Momen said expanding SME financing requires a strong digital ecosystem, noting the current model remains largely manual and inefficient. Andalib pointed to limited digital data and weak financial verification as major hurdles, particularly for non-garment firms without export records. Participants, including representatives of banks, non-bank financial institutions (NBFIs) and development partners, said banks cannot finance new projects without assured energy supply, making progress on gas and LNG infrastructure essential. They noted, however, that microenterprise lending is expanding through multiple channels with relatively low non-performing loans. Chairman of Bangladesh Krishi Bank Mohammed Nurul Amin, speaking as distinguished guest, said Bangladesh's regional, gender, financial and psychological inequalities require differentiated policies tailored to borrowers' circumstances. MCCI President Kamran T Rahman chaired the session. Participants called for coordinated action among Bangladesh Bank, financial institutions, policymakers and the private sector to expand credit access and strengthen financial inclusion. The recommendations from the roundtable are expected to feed into a more inclusive and growth-oriented financial system for the private sector.

Green chili prices have jumped sharply across Dhaka’s kitchen markets over the past few days, with retailers raising prices by Tk 40 to Tk 60 per kilogram. The kitchen spice was selling for Tk 260 to Tk 300 per kg in major retail markets on Monday, compared with Tk 200 to Tk 240 just five days ago. A visit to Karwan Bazar, Tejgaon Colony Market and Moghbazar found significant price variations. Retailers at Moghbazar and Tejgaon were selling green chilies at around Tk 300 per kg, while prices at Karwan Bazar where wholesale and retail trading take place side by side ranged between Tk 250 and Tk 280 per kg depending on quality. The latest surge marks a dramatic increase from just a month ago, when green chilies were available at Tk 50 to Tk 70 per kg. Traders attributed the steep increase to heavy rainfall and waterlogging in major producing areas, which they said has damaged crops and disrupted supplies to wholesale markets. Kawser Uddin, a trader at Karwan Bazar, said supplies from key production areas including Manikganj has virtually stopped. “We are now depending on shipments from Kushtia, Khulna, Jhenaidah and Rajshahi. Excessive rainfall in those regions has caused root rot and destroyed chili flowers, resulting in a severe shortage at production hubs,” he said. He added that daily arrivals have fallen from around 10 truckloads to eight, creating a supply gap. “Imports from India which usually help stabilise the market during shortages have not started yet,” Kawser said. Traders believe prices may remain high until weather condition improves or imports resume. Consumers, however, questioned the justification for the price hike alleging that some traders are using the rainy season as an excuse to create an artificial shortage and inflate prices. Many shoppers urged the government to intensify market monitoring and take action against price manipulation to protect consumers from unjustified increases. The latest spike in green chili prices has added to household expenses already strained by higher costs of other daily essentials, putting additional pressure on consumers.