United News of Bangladesh

Bangladesh must urgently diversify its export base beyond garments and mobilise around $300 million in targeted public investments across six non-RMG sectors to cushion the economic blow of graduating from the Least Developed Country (LDC) status, according to a new competitiveness study. The findings of the study were presented by MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), at a consultation workshop titled “Draft Development Project Proposal (DPP): Competitiveness Study of Potential Private Sectors in Bangladesh” held in the CIRDAP auditorium on Tuesday. Commerce Minister Khandakar Abdul Muktadir was the chief guest at the event with Commerce Secretary Ataur Rahman Khan in the chair. The study, prepared under the World Bank-supported Export Competitiveness for Jobs (EC4J) Project Phase II, maps out sector-specific constraints and a portfolio of nine infrastructure interventions targeting leather goods and footwear, agro-processed food, frozen fish and shrimp, handicrafts, IT-enabled services, semiconductors, and pharmaceuticals. LDC Graduation Bangladesh is on course to graduate from LDC status, which will strip the country of duty-free, quota-free access to major export markets and subject its goods to MFN tariff rates. The combined effect, the study warns, will raise the cost of exporting and erode Bangladesh's price competitiveness at a time when it can least afford it. Under the EU's standard GSP regime, Bangladeshi apparel exports could face tariffs of up to 12 percent compared to zero under the current Everything But Arms arrangement. Footwear will face a 6 percent duty, fish a 7.16 percent tariff, and leather goods between 0 and 2 percent. Canada's GPT regime could subject apparel to average tariffs of 16 percent, and Japan's exclusion of leather from its concluded EPA would leave that sector exposed to MFN tariffs of around 11 percent. A SMART partial-equilibrium simulation presented at the workshop projects Bangladesh's total export fall across key markets: a loss of $486.4 million, equivalent to 26.4 percent of market exports, to India; $5.8 billion, or 22.1 percent, to the EU under standard GSP; and $175.1 million, representing 10.4 percent of market exports, to China. Recent UNCTAD estimates place total exports at risk at $17.7 billion, or 32.2 percent of Bangladesh's export base, with the EU accounting for 77.2 percent of projected losses and apparel and footwear making up 97 percent of exposure. The study underscores just how structurally exposed Bangladesh is. Its export concentration, measured by the Herfindahl-Hirschman Index, is four times the developing country average and higher even than the LDC average, a reflection of the country's near-total dependence on RMG, which dominates shipments to every major market. Of Bangladesh's 1,393 non-RMG products, only 346 export more than $1 million annually. Only 2 to 5 percent of domestically grown crops are ever processed for export. The country holds less than 1 percent of the world leather goods market despite a $101.7 billion global market size, and less than 0.05 percent of global fish and shrimp trade despite possessing natural aquaculture advantages. Using the ITC Export Potential Map, RAPID estimates Bangladesh's overall untapped export potential at $32 billion, of which $5 billion relates to non-RMG products. Leather goods and footwear alone account for $2.6 billion of that unrealised potential. Home textiles, agro products, and sea animal products follow. Six Priority Sectors The study identifies six priority non-RMG sectors for Phase II intervention: agro-processed products, frozen fish and shrimp, leather goods and footwear, handicrafts, IT and IT-enabled services, and semiconductors. A seventh sector, pharmaceuticals, was subsequently added to the intervention portfolio. Each sector faces acute structural bottlenecks that suppress export competitiveness. Bangladesh has only five mango hot water treatment units against Thailand's fifty or more, making it legally ineligible to export mangoes to the United States, Japan, or Australia. The government's sole irradiation facility in Savar has been closed for two years, cutting off access to the North American spice market. Cold chain gaps cause an estimated 26 percent post-harvest loss for fruits alone. In shrimp farming, the sector requires 5 billion larvae annually but receives only 100 to 150 million from safe domestic sources, leaving farms reliant on disease-prone wild-caught broodstock. Bangladesh's fish and shrimp exports remain stuck in low-value raw forms, whole frozen shrimp while competitors like Vietnam command premium prices through value-added processed products. The leather sector cannot prove the provenance of its raw material to European buyers, who increasingly require full supply chain traceability. In handicrafts, artisans capture less than 20 percent of the final export price, with middlemen absorbing most of the value. The IT sector lacks GDPR-aligned data protection legislation, deterring European clients. And Bangladesh currently has only around 550 semiconductor designers against a minimum threshold of 5,000 needed to compete credibly. The nine proposed interventions carry a combined project-level cost of $140.43 million, with projected economic benefits of $216.06 million, implying an overall positive return. Individual benefit-cost ratios range from 2.05 for the two Common Facility Centres for leather and footwear, to 4.59 for the National Drug Testing Laboratory. The National Drug Testing Laboratory, at $5.13 million, will be housed at the Faculty of Pharmacy at the University of Dhaka and upgraded to achieve WHO prequalification and ISO/IEC 17025 accreditation. Its estimated annual economic benefit of $4.50 million reflects avoided overseas testing costs, faster export certification, and expanded pharmaceutical market access. The IT/ITES advanced training programme across 22 centres, with a $3.82 million cost, carries the second-highest BCR of 4.11, driven primarily by wage premiums for trained workers placed in export-oriented firms. Three Hot Water Treatment and quarantine centres for agro-processed exports, at $7.85 million, carry a BCR of 3.33, directly addressing phytosanitary compliance gaps that block mango exports to Japan and Europe. Two Brood Multiplication Centre hatcheries for the shrimp sector, at $5.41 million, carry a BCR of 2.13, with economic benefits concentrated in disease-loss reduction and improved post-larval survival rates. The study also proposes establishment of two large General Engineering and Technology Centres, one at BSCIC Sirajdikhan in Munshiganj at $33.73 million and another at the Mirsarai Economic Zone in Chattogram at $33.79 million, to supply skilled workers and shared technical services to industrial clusters. Across all components, including a $34 million LDC graduation preparedness component covering policy studies and private sector export readiness support, $81.85 million in construction and infrastructure, $134.65 million in machinery and equipment, $11 million in public sector capacity building, $12.5 million in private sector and business association support, and $20 million for project management, the total EC4J Phase II programme is estimated at $300 million with a 2 percent contingency. Drawing on Phase I implementation experience, the study recommends against government-only management models, noting that the 50:50 public-private ownership structure for technology centres proved effective in ensuring financial sustainability. For Phase II, the study recommends early private sector engagement in technology centre operations, shift to behaviour-change communication emphasising financial incentives, and resolution of procurement bottlenecks before facilities are commissioned. Over a five-year horizon, the projected export growth from Phase II interventions could generate between 57,000 and 86,000 new jobs in agro-processing, 124,000 to 249,000 in frozen fish and shrimp, the largest employment-generating sector with 1.24 million current workers, 13,000 to 16,000 in IT-enabled services, and 20,000 to 24,000 in leather goods and footwear. The study cautions that these estimates assume constant labour productivity and that actual outcomes may vary where growth is driven by automation or higher value-addition per unit rather than proportional volume expansion.

Bangladesh Bank on Tuesday launched a new banking facility called the "Non-Resident Convertible Taka Account" for expatriate Bangladeshis, allowing them to freely repatriate their principal funds and earned profits from abroad. A directive to this effect was dispatched to the managing directors and chief executives of all scheduled banks operating across the country today. According to the central bank, the primary objectives behind introducing this account are to channel remittances more effectively through formal networks, step up investment opportunities, and expand offshore banking operations of scheduled banks. Under the new guidelines, expatriates can open non-resident convertible taka accounts by funneling funds sent through formal banking channels via Offshore Banking Units (OBUs). Expatriates will have the flexibility to open current, savings, or fixed deposit accounts under this mechanism. The accounts can accept funds transferred from other non-resident convertible foreign exchange accounts, interests or profits earned from investments, yields from investments, refunds from equity subscriptions, and other permissible foreign exchange transactions. The central bank circular explicitly details that the principal amount deposited in these accounts, alongside any accrued interest or profit, will remain fully repatriable. Concurrently, the deposited funds can be utilized locally for legitimate domestic payments, transfers to other non-resident accounts, conversion into foreign currencies, and financing foreign direct investments (FDI) or portfolio investments inside Bangladesh. Furthermore, commercial banks are permitted to extend local Taka-denominated credit facilities to Type-A (100 percent foreign-owned) industrial units situated in specialized economic zones by using funds from these non-resident convertible accounts. However, such loans can only be utilized to meet approved working capital expenditures, such as salaries, wages, and utility bills, and must be repaid exclusively using the respective industry's export earnings. The central bank circular also notes that banks can offer credit facilities to expatriates or their local nominees against the security or collateral of the funds maintained in these accounts. These loans can be utilized for personal or business purposes. However, investments in agriculture, plantation activities, and the real estate sector remain strictly prohibited. These funds are also restricted from being used to buy residential property for personal use or for non-repatriable domestic investments. A senior official of Bangladesh Bank stated that this fresh financial apparatus will significantly bolster financial intermediation for remittances while adding dynamism to offshore banking functions. It will offer a structured platform for expatriate Bangladeshis to actively participate in domestic investments and ease Taka liquidity challenges for Type-A industries operating in specialized economic zones.

The International Monetary Fund (IMF) has sought a time-bound action plan for comprehensive banking sector reforms, specifically raising structural objections over the newly added Section 18(A) of the Bank Company Act, finance ministry sources said. The global lender has placed these conditions as part of ongoing negotiations for a completely new loan package formally requested by the government on June 1. A senior official of the ministry told UNB on Tuesday in anonymity that the IMF has expressed strong reservations regarding Section 18(A) of the Bank Company Act—a controversial provision incorporated into the legislation that creates a legal window to return the ownership of forced-merged or restructured banks back to their previous owners. The multilateral lender views this clause as a masked loophole that compromises structural governance and weakens accountability within the financial sector. To satisfy the IMF conditions and ensure financial sector discipline, the government has taken a decision in principle to drop Section 18(A) from the law entirely. In addition to stripping the controversial provision, the IMF has sought explicit, definitive plans from the government to sharply bring down non-performing loans (NPLs), execute the merger of weak financial institutions, and completely halt state and political interference in commercial bank management. Beyond the banking arena, the global financial institution has locked down tough fiscal conditions on the revenue side. The IMF is pushing for the enforcement of a uniform 15 percent Value Added Tax (VAT) rate across the board and the broad application of a turnover tax. While ministry officials noted that the government aligns with the idea of a single-rate VAT system, it plans to negotiate the cap between 10 to 12 percent.  Furthermore, authorities are reluctant to immediately impose the turnover tax, arguing that it penalizes enterprises based on total volume even if they are incurring losses. The government plans to roll it out only after upgrading the National Board of Revenue's (NBR) accounting infrastructure. An IMF delegation is scheduled to visit Dhaka in mid-July to evaluate the country's economic readiness and structural compliance. The mission's appraisal will lay the groundwork for final discussions during the IMF-World Bank Group Annual Meetings in Thailand this October, paving the way for the potential signing of the new loan agreement by December. Bangladesh's long-term borrowing capacity under the standard IMF quota rules stands at up to US$4.64 billion SDR, translating to approximately $6.15 billion at current exchange rates.

Asian stock markets traded mixed on Tuesday as investor caution returned amid uncertainty over efforts to end the war in Iran, cooling recent strong gains across the region. Japan’s benchmark Nikkei 225 fell 0.9% in early trading to 71,681.29, while analysts said the market was taking a breather after a strong rally. “We’ve had eight days of strong markets. The market was up about 12.5%, and now it has cooled off a little bit,” said Neil Newman, managing director and head of strategy at Astris Advisory Japan. Australia’s S&P/ASX 200 edged up less than 0.1% to 8,822.10, while South Korea’s Kospi dropped sharply by 2.8% to 8,863.52. Hong Kong’s Hang Seng slipped 0.4% to 23,678.22, and China’s Shanghai Composite gained 0.2% to 4,170.58. On Wall Street, U.S. stocks closed mixed on Monday as oil prices eased and major technology shares fell. The S&P 500 declined 0.4%, pulling 1.8% below its recent record high after a strong run of gains in recent weeks. The Dow Jones Industrial Average rose 148 points, or 0.3%, while the Nasdaq Composite dropped 1.3%, dragged down by weakness in major tech stocks. Oil prices eased after weekend discussions between the United States and Iran over the ongoing conflict. U.S. Vice President JD Vance said the talks had created a “good foundation for a successful final deal.” Any resolution to the conflict could reopen the Strait of Hormuz, a critical route for global oil shipments. Iran had claimed it closed the strait, but U.S. Central Command disputed the claim. In early trading Tuesday, U.S. crude oil rose 35 cents to $74.21 per barrel, while Brent crude added 23 cents to $78.13. Bond yields also moved higher, with the 10-year U.S. Treasury yield rising to 4.50% from 4.46%, as markets speculated that the Federal Reserve could raise interest rates to contain inflation driven by higher energy costs. Economists expect upcoming U.S. inflation data to show consumer prices rising to 4.1% in May, up from 3.8% in April. In corporate trading, shares linked to SpaceX fell 16.4% to $154.60, marking a third straight decline after a recent surge following its stock market debut. Major tech stocks also weighed on the S&P 500, including Alphabet, Amazon and Broadcom, which each dropped between 4% and 5%. Overall, the S&P 500 lost 27.79 points to close at 7,472.79. The Dow gained 148.01 points to 51,712.71, while the Nasdaq fell 351.33 points to 26,166.60. In currency markets, the U.S. dollar edged slightly higher to 161.60 Japanese yen, while the euro traded at $1.1427.

BAT Bangladesh PLC. has appointed Raiyan Ahmed as its new Head of Talent, Culture & Inclusion, to drive the company’s strategic agenda. In his new leadership role, Raiyan will oversee the company's organizational talent acquisition, workplace culture, and diversity initiatives, while supporting leadership development and fostering an inclusive corporate environment, according to a press release. Raiyan brings 13 years of extensive human resource management experience within the BAT Group. Appointment of his in new position effective from this month.Throughout his tenure, he has served in diverse leadership and operational management positions across BAT Bangladesh and the Asia Pacific and Middle East Regional Headquarters in Hong Kong. Most recently, he held the position of Head of Operations HR for BAT Bangladesh, where he played a pivotal role in guiding the company through a significant period of structural transition and workforce capability development. An alumnus of St. Joseph Higher Secondary School and Notre Dame College in Dhaka, Raiyan completed his graduation with a Bachelor of Business Administration (BBA) degree from East West University. Commenting on his new role, Raiyan said he is honored to take on the responsibility and aims to build on the existing corporate culture while strengthening organizational capability to help teams grow and succeed.

Driven by a steady upward trend, Bangladesh’s inward remittances grew by 18.1 percent year-on-year, reaching an impressive US$34.84 billion in the current fiscal year FY 2025-26 up to June 21, according to the latest data from Bangladesh Bank. During the corresponding period of the previous fiscal year (July 2024 to June 21, 2025), the country’s migrant workers sent home $29.50 billion. The central bank’s latest daily breakdown shows that expatriate Bangladeshis sent $130 million on June 21 alone. This brought the cumulative remittance receipts for the first 21 days of June 2026 to $2.08 billion. It also suggests with 9 days left, the country's inward remittances for the year may even touch $36 billion - implying average inflows of $3 billion per month. This represents a 4.7 percent monthly growth compared to the same period in June 2025, when remittance inflows stood at $1.99 billion between June 1 and June 21. Industry insiders attribute this sustained growth to a higher number of workers heading abroad and the effective utilization of official, legal banking channels for money transfers. Foreign Exchange Reserves: Alongside the robust remittance numbers, Bangladesh Bank also released its latest foreign exchange reserve figures. As of June 22, 2026, the country's gross foreign exchange reserves stood at $35.74 billion. Meanwhile, calculated under the International Monetary Fund’s (IMF) Balance of Payments Manual 6 (BPM6) framework, the official usable reserves stood at $31.18 billion, providing a stable cushion for the country's import liabilities and macroeconomic management.

In a major relief move, Bangladesh Bank (BB) has decided to appoint administrators to initiate the liquidation process of five effectively bankrupt Non-Bank Financial Institutions (NBFIs) and return funds to thousands of distressed small depositors. Under the regulatory rescue roadmap, the central bank will initially refund individual depositors with savings up to Tk 10 lakh. The required capital for this first-phase reimbursement will be disbursed from a specialized government fund allocated in the national budget. Bangladesh Bank urges media to report responsibly on banking sector’s ‘distressed loans’ According to central bank sources, the five financial institutions designated for formal liquidation are FAS Finance, Fareast Finance, Aviva Finance, People's Leasing and Financial Services, and International Leasing and Financial Services. Official data from Bangladesh Bank reveals that these five institutions collectively hold roughly Tk 2,700 crore deposited by nearly 27,000 individual retail investors, most of whom have faced severe financial uncertainty due to being denied withdrawals for over a decade. The latest financial audits underscore a catastrophic collapse in the credit health of these institutions. As of December last, default loans at FAS Finance reached an unprecedented 99.99 percent, followed closely by International Leasing at 99.44 percent, Fareast Finance at 98.50 percent, People's Leasing at approximately 95 percent, and Aviva Finance at 93.93 percent. The data indicates that the entire combined loan portfolio of these five non-bank lenders has turned into non-performing assets, rendering them completely incapable of continuing day-to-day corporate operations. Bangladesh Bank officials noted that the government has already provided its policy concurrence regarding the liquidation strategy. Following the formal appointment of state administrators, the central bank will evaluate the residual assets of the institutions while sequentially settling the claims of small depositors.

Maria Howlader, Secretary General and Board Member of Japan Bangladesh Chamber of commerce and Industry (JBCCI) Bangladesh Bank Governor Md. Mostaqur Rahman on Monday. During the meeting, she explained JBCCI’s role & activities in promoting Japan-Bangladesh trade, investment, and economic cooperation, with emphasis on effective implementation of the Japan-Bangladesh Economic Partnership Agreement (EPA), said a press release. JBCCI reaffirms commitment to improving Bangladesh’s investment climate She also expressed that JBCCI would like to work closely with the Bangladesh Bank and relevant government agencies to accelerate the bilateral relationship with Japan and an investment-friendly, competitive business environment in Bangladesh, further strengthening the longstanding economic partnership between both countries.

The Islami Bank Sachetan Grahok Forum (Conscious Customer Forum) on Monday issued a strict 24-hour ultimatum to Bangladesh Bank to constitute a full and independent board of directors for Islami Bank Bangladesh PLC. The announcement came during an intensive sit-in program organized by the forum in front of the central bank's headquarters in the capital. Speaking at the demonstration, the forum's Convener, Professor Nur Nabi Manik, warned that if the central bank fails to form a complete operational board within the next 24 hours, the platform will be forced to launch tougher programs starting from Wednesday (June 24). "An acceptable, independent, and comprehensive board of directors consisting of honest, qualified, and experienced professionals must be constituted immediately through structural discussions with relevant stakeholders," Manik demanded. In addition to the immediate formation of the board, the forum reiterated its core demands, which include returning valid corporate ownership to the sponsors and shareholders who were allegedly stripped of their stakes through state coercion in 2017. The protesters also called for the immediate establishment of a special tribunal to try financial sector looters, the absolute recovery of embezzled funds, and the confiscation of all local assets linked to the controversial S Alam Group. Furthermore, the platform strongly demanded the repeal of Section 18(A) of the Bank Company Act, asserting that the provision functions as a masked opportunity to rehabilitate financial offenders back into the banking industry. The forum leaders also demanded an immediate retraction of recent statements made in the national parliament by the Home Minister regarding Islami Bank, which they alleged provided a subtle hint of restoring control of the country's largest Shari'ah-based lender to the S Alam Group.

Bangladesh Bank on Monday declared that no political activities or vested interest-driven motives will be tolerated surrounding Islami Bank Bangladesh. The central bank also assured that a fresh, acceptable board of directors consisting of honest, qualified, and highly competent individuals will be formed very soon to manage the institution. Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan disclosed the central bank’s stance to journalists on Monday afternoon. "Islami Bank is a critical institution within the country’s financial ecosystem. If this bank faces damage, it will trigger a severe negative spillover across the entire banking sector. Therefore, no one will be allowed to play politics over Islami Bank. An acceptable board of directors will be constituted shortly," Khan said. The statement came hours after members of the Islami Bank Shacheton Grahok Forum (Conscious Customers Forum) staged an intensive demonstration and sit-in program in front of the main entrance of Bangladesh Bank on Monday morning. The protesters issued an ultimatum demanding the complete reorganisation of the bank’s board of directors within 24 hours, warning of tougher programs if the deadline is missed. The forum leaders demanded that any individuals linked to the controversial S Alam Group must be strictly barred from entering the upcoming board. They also demanded the immediate reinstatement of original sponsors and shareholders who held ownership in the bank prior to 2017. Earlier on June 16, the forum submitted a memorandum to the Governor of Bangladesh Bank pressing similar demands. Bangladesh Bank dissolved the entire board of directors of Islami Bank on June 13 and appointed its Executive Director, Mohammad Zahir Hossain, to oversee the overall corporate operations.