United News of Bangladesh

Bangladesh’s capital market extended its post-Eid rally for a second consecutive session on Tuesday, with key indices gaining further ground and turnover on the Dhaka Stock Exchange (DSE) surpassing Tk 10 billion. The benchmark DSEX advanced 33 points, while the Shariah-based DSES and blue-chip DS30 indices rose by 2 points and 5 points respectively. The gains followed Monday’s strong performance, when DSEX climbed 36 points, DSES added 4 points and DS30 increased 13 points. Market activity also improved significantly. Total turnover on the DSE stood at Tk 10.80 billion, up from Tk 9.12 billion in the previous session. It was the first time since May 12 that daily turnoverexceeded the Tk 10 billion mark. Most listed companies ended higher, with share prices of 230 issues advancing, 116 declining and 47 remaining unchanged. Sonargaon Textiles Ltd topped the DSE gainers' list, rising nearly 10 percent, while Bangladesh Industrial Finance Company Ltd suffered the steepest fall, losing around 9 percent. The Chittagong Stock Exchange (CSE) also closed in positive territory, with its broad-based CASPI index gaining 8 points. Of the traded issues on the CSE, 128 advanced, 58 declined and 31 remained unchanged. Turnover at the port city bourse, however, fell to Tk 270 million from Tk 470 million in the previous session. Eastern Insurance PLC and New Line Clothing Ltd emerged as the top gainers on the CSE with nearly 10 percent price appreciation, while GSP Finance Company (Bangladesh) PLC was the worst performer, shedding 10 percent.  

Bangladesh Bank has confirmed that the newly appointed Chairman of Islami Bank Bangladesh PLC, Md. Khorshid Alam will not be removed from his post despite ongoing street protests demanding his resignation. The announcement came on Monday from central bank spokesperson Arief Hossain Khan, following violent clashes outside the Islami Bank headquarters in Motijheel earlier in the day. A group of demonstrators, rallying under the banner of the "Islami Bank Customers' Forum," staged a protest in front of the head office on Monday morning to demand the cancellation of Khorshid Alam’s appointment. The situation escalated when police used batons, water cannons, tear gas, and sound grenades to disperse the crowd. Responding to the demonstrations, central bank spokesperson Arief Hossain Khan stated that the regulatory appointment has no connection to the street agitation. "The movement has no link to the appointment. If Bangladesh Bank alters a decision today because of a protest, and then a counter-group launches an agitation opposing that new decision, what will the central bank do? Bangladesh Bank will move at its own pace based on its independent procedures. There is no possibility of changing the central bank’s decision due to street demonstrations," Khan told UNB. Bangladesh Bank appointed Md. Khorshid Alam, a former deputy governor of the central bank, as the chairman of Islami Bank on the night of May 24. The appointment followed the sudden resignation earlier that day of M Zubaidur Rahman, who had been appointed as chairman during the interim government's tenure. Rahman resigned after facing intense pressure and demonstrations from individuals identifying themselves as bank officials and customers. Sources added that the Managing Director (MD) of the bank is also currently on extended leave. Meanwhile, Bangladesh Jamaat-e-Islami strongly condemned the police action against the demonstrating customers outside the bank's headquarters. In a statement issued on Monday, Jamaat-e-Islami Secretary General Mia Golam Porwar said that ordinary account holders were conducting a peaceful sit-in program under the "Islami Bank Customers' Forum" banner when police initiated an unprovoked baton charge and used teargas and water cannons. Denouncing the use of force, Porwar expressed his full solidarity with the customers, describing their demands as logical and just.

Prices of sacrificial cattle at Dhaka's makeshift markets have plummeted by more than 50 percent in the final hours before Eid-ul-Azha, with traders reporting heavy losses while buyers welcomed the sharp decline, though poor weather and soaring transport costs are dampening the overall festive mood. Visits to several cattle markets across the capital on Wednesday revealed a dramatic single-day price drop for medium and large cattle, while smaller animals remained largely steady in price. At the Notunbazar 100-Feet cattle market, trader Aynal, who brought 19 cattle from Chuadanga, said buyers are now offering Tk 1.20 lakh to Tk 1.50 lakh for animals he had priced at Tk 2.50 lakh. “If I sell at these prices, I will face massive losses,” he said, adding that he managed to sell only seven animals. Another trader, Shahin, who travelled from Jamalpur with seven cattle, sold only three. He said a cow he had refused to part with at Tk 1.80 lakh is now being offered Tk 1.20 lakh, while another priced at Tk 3 lakh is drawing bids of just Tk 1.50 lakh. At the Aftabnagar market, buyer Raisu noted that demand for premium cattle has virtually collapsed. “No one is willing to go beyond Tk 5 lakh. Sellers asking Tk 8 to Tk 10 lakh are hearing counter-offers of Tk 3 to Tk 3.50 lakh. Those who brought high-value animals will likely return home without selling.” At Meradiya market, Monsur, who oversees the haseel (transaction tax) booth, confirmed the price slide. “Animals that were selling for Tk 1.50 lakh are now going for Tk 70,000 to Tk 80,000,” he said, noting that transaction volumes have fallen sharply compared to last Eid. Weather and Logistics Add to Woes Traders and buyers alike pointed to several days of continuous rainfall as the primary driver of the market downturn, creating waterlogging at multiple venues with no drainage arrangements in sight. Buyer Sakibul Alam at the Tejgaon cattle market said adverse weather forced him to hire a pickup truck — at twice the usual rate. “The cattle price has come down, but extra costs are being added from every direction.” Trader Suleman from Jamalpur, selling at Aftabnagar, said rising fodder prices and higher transport costs had already squeezed his margins before reaching Dhaka. “We raise cattle for Eid expecting extra profit. But at the prices buyers are offering, selling to a butcher by the kilogram would fetch more.” Buyer Saidul Islam at Meradiya noted that a five percent haseel charge, roughly Tk 10,000 on a Tk 2 lakh purchase, is also factored into buyers' calculations, adding further pressure on transaction prices. Sellers are urging hat authorities to ensure proper drainage infrastructure at cattle markets in future years, warning that the combination of poor facilities and unpredictable weather is making the annual trade increasingly unviable for farmers.

Bangladesh Jewellers Association (BAJUS) has raised gold prices in the domestic market ahead of Eid, pushing the price of 22-carat gold up by Tk 2,158 per bhori to Tk 2,38,121, effective from 10:00am Monday. The price revision comes on the back of rising pure gold (tejabi) values in the local market, BAJUS said in a statement. Under the revised rates, 21-carat gold will now be sold at Tk 2,27,331 per bhori, 18-carat at Tk 1,94,847 and traditional-method gold at Tk 1,58,689 per bhori (1 bhori = 11.664 grams). The latest hike reverses a cut made just two days ago. On May 23, BAJUS had reduced the price of 22-carat gold by the same margin Tk 2,158 per bhori, setting it at Tk 2,35,963. Gold prices in Bangladesh have now been revised 69 times so far in 2026, with 37 upward and 32 downward adjustments, reflecting the continued volatility in global bullion markets. Silver prices have also been revised upward alongside gold. The price of 22-carat silver has been raised by Tk 117 per bhori to Tk 5,774. Other silver rates now stand at Tk 5,540 for 21-carat, Tk 4,724 for 18-carat and Tk 3,558 per bhori for traditional-method silver. Silver prices have seen 40 revisions in 2026, 22 increases and 18 reductions.

Import-export activities between Bangladesh and India through Bibir Bazar land port in Cumilla will remain suspended for seven days from Monday on the occasion of Eid-ul-Azha. “All types of import and export activities through the port will remain closed from May 25 to May 31,” said Nirmal Pal, general secretary of the land port’s Clearing and Forwarding Agents Association. However, movement of passport holders between the two countries will continue during the period, he said. Business activities at the port will resume from June 1, he added.

The Alliance of 6 NBFIs Depositors for Recovery Committee on Saturday demanded that the government issue a legally binding notification guaranteeing the full return of their principal amounts along with accrued profits by December 31, 2026. The alliance, which represents 12,000 individual depositors across six ailing Non-Bank Financial Institutions (NBFIs), explicitly rejected informal or conditional government assurances reported in the media. The affected institutions include FAS Finance & Investment Limited, Premier Leasing, Fareast Finance, Aviva Finance, People's Leasing and Financial Services, and International Leasing and Financial Services. Together, these 12,000 individual depositors have an aggregate of approximately Tk 3,525 crore trapped in these institutions. Among them, the depositors of People's Leasing have had their funds frozen since July 2019. In a press release issued today, the alliance expressed frustration over the lack of direct communication from Bangladesh Bank or the Ministry of Finance, despite a silent protest and the formal submission of a memorandum on May 6. "We are only hearing rumors through the media. No ordinance has been issued, and no official order has reached us," said Jafar Ullah Khan, Convenor of the committee. "Many of our members have been waiting since July 2019. We will not accept any 'under process' rhetoric as a substitute for a legal commitment. Issue the notification, set the deadline, and give it to us in writing." The demand includes- Legally Binding Notification & Fixed Timeline: The group demands an official, published, and legally enforceable notification detailing a complete payout by December 31, 2026. They stated that conditional media reports suggesting funds might be released in July or that liquidation processes are being drawn up are not acceptable substitutes for a legal mandate. Payment of Fully Accrued Profits: The depositors strongly rejected media hints suggesting that only the principal amount might be returned without any profits. The alliance argued that based on contractual agreement rates and current inflation data from the Bangladesh Bureau of Statistics (BBS), a depositor who saved Tk 10 lakh in 2019 has suffered a combined loss of Tk 12.38 lakh to Tk 13.78 lakh. Maintaining the purchasing power of Tk 10 lakh from 2019 requires roughly Tk 16.78 lakh today. Absolute Accountability for Plunderers: The committee insists that even if the government pays back the depositors, the personal liabilities of the directors, executives, and default borrowers who looted these institutions through shell companies, fake loans, and fraudulent transactions must not be minimized. They demanded criminal prosecution without delay, asset recovery under the full extent of the law, and the publication of a registry naming all liable individuals. Kawsar Hossain Chowdhury (KC), co-founder and coordinator of the alliance, noted that members deposited their life savings relying on the regulatory approval and validation stamp of the central bank. "The collapse of these NBFIs is not personal bad luck; it is a regulatory failure," the alliance stated, adding that Bangladesh Bank must bearthe responsibility for returning the full amount with profits. The alliance, which has already organized six peaceful silent protests, declared that its legal and transparent movement will continue until a written order is issued and every depositor receives their money in full.

A high-level delegation from the European Union recently visited the factory of Apex Footwear Limited in Gazipur to observe how global best practices are being maintained in Bangladesh’s footwear and leather industry. The delegation, led by EU Ambassador Michael Miller, witnessed the facility as part of a broader EU initiative to promote industry-wide sustainability. German Ambassador Rüdiger Lotz and Italian Ambassador Antonio Alessandro were also part of the delegation, according to a media statement issued on Saturday. Ambassador Miller called the visit a reflection of the strong ties between Europe and Bangladesh's industrial sector.

Bangladesh Bank (BB) on Saturday announced a massive Tk 60,000 crore stimulus package for 2026, aiming to revitalise a slowing national economy, spur private sector development and generate over 2.5 million jobs. Bangladesh Bank Governor Md. Mostaqur Rahman made the announcement at a press briefing at the central bank headquarters. Detailing the interest rate structure, the governor said commercial banks will disburse loans under the package at a market interest rate of 10 to 11 pc. To ease the burden on businesses, the central bank will provide an interest subsidy of 6 to 7 percent, effectively allowing receiving entrepreneurs to secure funds at a subsidised interest rate of just 4 percent. "Over the past three years, our national economy has faced consecutive growth slowdowns," Governor Rahman said, highlighting the urgency of the intervention. "Our Gross Domestic Product (GDP) growth which previously stood at 5.8 percent, subsequently dropped to 4.2 pc. Under the current economic climate, it is projected to further decelerate to 3.7 percent." The governor noted that alongside the macroeconomic slowdown, key industrial pillars—including ready-made garments (RMG), textiles, steel, ceramics, information technology, and manufacturing—have sustained major blows. "Furthermore, our banking sector is under mounting pressure. We are witnessing a sharp rise in non-performing loans (NPLs), instances of money laundering, and a visible decline in depositor confidence," he added. He emphasised that prevailing high interest rates have also discouraged Small and Medium Enterprises (SMEs) from expanding their businesses. "To confront these critical challenges and breathe new life into the financial ecosystem, the central bank has launched this special scheme to revitalise and stabilise our economy." Fund Structure and Breakdown: The Tk 60,000 crore fund is split into two primary funding mechanisms: Refinancing Fund (Tk 41,000 Crore): Sourced from commercial banks holding excess liquidity through long-term deposits of three years or more, at a 10 percent interest rate. BB’s Own Resources (Tk 19,000 Crore): Drawn directly from the central bank’s own funds, backed by a government guarantee. Strategic Allocations and Employment Targets: The stimulus package strongly prioritises restoring industrial production capacity and boosting rural development. A lion's share of Tk 20,000 crore has been earmarked for the Closed Industry & Service Sector, which is expected to create 200,000 jobs by helping shuttered factories reopen and fulfill pending export orders. Other key allocations under the refinancing scheme include: Agriculture & Rural Activities: Tk 10,000 crore, targeting the creation of 900,000 jobs. CMSME Sector: Tk 5,000 crore, aimed at generating 500,000 jobs. North Bengal Agricultural Hub: Tk 3,000 crore specialised fund for production, preservation, and export processing. Export Diversification: Tk 3,000 crore to expand the basket of goods and services shipped overseas. Targeted Sectoral Support: Under its own funding component, Bangladesh Bank has designated resources for various specialised and vulnerable sectors: Cottage & Micro Entrepreneurs: Tk 5,000 crore. Pre-Shipment Credit for Export Sector: Tk 5,000 crore. Traditional Export Sectors: A combined Tk 4,000 crore allocated for leather, footwear, frozen shrimp, and fish exports. Youth & Overseas Employment: Tk 1,000 crore each to facilitate skilled placements and create jobs for the unemployed. Creative Economy & Startups: Tk 500 crore each to foster technological and cultural innovation. Deputy Governors Nurun Nahar, Habibur Rahman and Dr. Md Kabir Ahmed, among other senior officials, were present.

Commerce Minister Khandakar Abdul Muktadir on Saturday said the government has no plans to establish or operate any new state-owned mills or factories, reaffirming that the private sector will drive industrial growth while the government plays a facilitative role. “The government will not do business. Business will be done by the private sector, and the government will provide support,” Muktadir said at a seminar titled “Sustainable Transition to Employment: Preparedness and Pathways for Textile Students,” held at the Jute Diversification Promotion Centre in Farmgate. Industries will be expanded further to reduce unemployment: Minister Muktadir The minister, who also oversees the textiles and jute portfolio, said the government's role would be limited to policy support and creating an enabling environment for industry. Stressing the need to modernise the textile sector before its workforce challenges could be addressed, Muktadir said, “If the industry is in crisis, employment for students will not be sustainable either.” He called for timely revision of curricula at textile institutes and engineering colleges to keep pace with technological advancement, proposing that the Bangladesh Textile Mills Association (BTMA) and capable private mills be formally linked with educational institutions. The initiative, he said, would ease faculty shortages, accelerate technological upgradation and give students direct exposure to real industry settings. The minister also identified energy supply uncertainty, high production costs, elevated cost of funds, and technological constraints as the sector's key challenges, adding that the government is working to address them. He said the textile sector would be made more competitive through promotion of man-made fibres, new product development, and value chain upgradation. Textiles and Jute Secretary Abdun Naser Khan inaugurated the event. The keynote paper was presented by Dr. Abbasuddin Shayak, Associate Professor at Bangladesh University of Textiles. Senior officials from textile and jute ministry departments, industry leaders, entrepreneurs, and former and current textile students attended the event.

Exorbitant tax structures levied on the country's mobile telecom sector are functioning as a critical barrier to internet connectivity, digital inclusion, and overall economic performance, according to a new comprehensive report. The research document titled “Bangladesh Can Increase Economic Growth by Lowering Barriers to Digital Connectivity”, prepared by global advisory firm Frontier Economics Limited for digital operator VEON, outlines how rationalising these heavy fiscal constraints could act as a massive catalyst for macroeconomic acceleration and ultimate expansion of the government's tax base. According to the report, Bangladesh maintains an exceptionally low general tax-to-GDP ratio of 7.6 percent, far below the Asia-Pacific regional average of 20 percent. Yet, the government relies disproportionately on the mobile telecom ecosystem to generate revenues, subjecting it to penalising tax brackets compared to regional neighbours. Citing estimates from global telecom body GSMA, Frontier Economics highlighted that total combined taxes, statutory duties, and regulatory fees swallow up a staggering 55 percent of the mobile sector’s entire revenue stream in Bangladesh. This effectively channels US$ 0.55 of every single dollar earned by mobile operators straight to the national exchequer. The analysis points out that total sales, usage, and turnover taxes on consumers and operators sum up to a punishing 39 percent (compared to the standard national VAT rate of 15 percent), which balloons to 47 percent of the Average Revenue Per User (ARPU) when factored alongside mandatory revenue sharing mechanisms (5.5 percent), the Social Obligation Fund (1 percent), and minimum turnover thresholds. Furthermore, corporate profits for non-publicly traded mobile entities are taxed at 45 percent (and 40 percent for publicly traded operators), towering vastly above the baseline corporate tax rate of 22.5 percent to 27.5 percent enforced across other commercial sectors. The report also takes sharp aim at the fixed Tk 300 tax applied to every new SIM connection. It labels this consumer levy as severely regressive in a "mobile-first" economy where lower-income communities face acute affordability challenges to access basic smartphone data. The resulting operational squeeze has severely hampered local telecommunication advancement. Despite domestic mobile networks successfully building out a 99 percent population footprint for 4G coverage, operator ARPU has been choked down to a meager $ 1.2 per month. "Low ARPU and weak smartphone penetration inevitably impact the ability of operators to profitably invest further in their networks—for example, to expand capacity or deploy 5G," the report stated. Driven by these restricted capital investments, Bangladesh currently logs a modest average mobile download speed of 40 mbps, ranking a lowly 91st out of 105 surveyed nations globally. Currently, only 38 percent of the adult population in Bangladesh own smartphones, leaving millions locked out of the modern digital fold. Econometric modelling mapped out in the study demonstrates that bringing mobile sector taxes into alignment with general economic benchmarks would deliver compounding fiscal and development returns. Frontier Economics modelled a scenario where the 20 percent Supplementary Duty is lowered to 5 percent, regulatory revenue sharing drops to 1 percent, and the SIM tax is entirely abolished. The projections indicate that such reforms will trigger a 4 percent surge in data usage per subscriber and a 5 percent increase in mobile penetration. Most notably, the model shows this digital surge will accelerate Bangladesh’s annual real GDP per capita growth rate from its baseline projection of roughly 6.6 percent up to 7.2 percent. Addressing the government’s immediate revenue anxieties, the report acknowledges that a localised tax rollback will induce an initial, short-term deficit in sector-specific collections – calculated at approximately $ 761 million in the first year. However, the firm notes that the structural transformation will be fully self-funding within a brief window. The massive productivity spike in the wider economy will broaden the overarching national tax base, yielding a complete, positive fiscal break-even by the year 2030. To achieve the long-term socioeconomic benchmarks laid down in the state’s ICT Master Plan and the Smart Bangladesh Vision 2041, the study urges policymaking organs to implement immediate corrective frameworks. It explicitly recommends rebalancing national tax policy away from sector-specific consumption penalties that artificially inflate consumer data prices, eradicating entry barriers like access charges that keep marginal citizens offline, and explicitly communicating fiscal adjustments as an investment to formalise broader economic activity. "Reducing these barriers promotes inclusion and expands the user base that later contributes to the wider tax base," the study concluded, emphasising that the temporary fiscal dip remains entirely manageable against the permanent economic dividend.