United News of Bangladesh

Bangladesh received US$ $2.61 billion remittances in 29 days of the current month, April. At the same period of the previous year, the expatriates sent $1.91 billion remittance. Expatriates sent $1.78 billion in remittances in first 19 days of April According to the latest report of Bangladesh Bank, in the first 29 days of April expatriates sent $2.61 billion remittance. The remittance inward trend saw a growth by 36.6 percent in 29 days of April 2025, compared with April 2024. Bangladesh so far (till April 29) received $24.39 billion remittance, which is already higher than what was received during the entire 2023-24 fiscal.

Novoair, a Bangladeshi private airline company, shut down its operations from Friday (May 2) due to an internal financial crisis. When contacted, Novoair authorities said that flights have been temporarily suspended. If the services are permanently closed, it will be notified officially. Earlier, NovoAir had announced that it would buy more aircraft to operate flights on international routes. However, they are currently suffering from a financial crisis. They have not yet been able to confirm a new investor.  Discussions were underway for investors. If they do not find an investor, they may close. Currently, NovoAir operates domestic flights from Dhaka to Chittagong, Cox's Bazar, Sylhet, Jessore, Saidpur and Rajshahi daily. Due to a passenger crisis, their only international route, Kolkata, has been suspended since September last year.

Japan’s Finance Minister Katsunobu Kato has hinted that the country’s substantial holdings of US Treasury could serve as leverage in ongoing tariff negotiations with the Trump administration. “It does exist as a card, but I think whether we choose to use it or not would be a separate decision,” Kato stated during a televised interview on national broadcaster TV Tokyo on Friday, AP reports. While Kato refrained from providing further details or suggesting Japan intends to sell its holdings, the remark signals a potential shift in Japan’s strategy as tensions over tariffs grow. Previously, Kato and other Japanese officials had dismissed the possibility of using Treasury holdings as a negotiation tool. Japan is currently the largest foreign holder of US government debt, owning approximately $1.13 trillion as of late February. China, which is also engaged in a trade standoff with the United States, ranks second. The $10 billion India-Pakistan trade hidden from official records Kato emphasised that various elements would be considered in negotiations with President Donald Trump, hinting that Japan’s continued investment in US bonds could be used to gain favourable terms. The Trump administration has disrupted long-standing US trade policies, including with allies such as Japan, by imposing steep tariffs on a broad range of imported goods. A new round of US tariffs — 25% on vehicles and auto parts, and a 10% baseline tariff — is expected to take effect soon, posing a threat to Japan’s slowing economy. A delegation of Japanese officials visited Washington this week for discussions aimed at averting the new tariffs.

In the aftermath of a deadly attack in Pahalgam, a scenic area of India-administered Kashmir that left at least 26 people dead, tensions between India and Pakistan escalated, prompting both nations to take retaliatory diplomatic steps, including halting cross-border trade and suspending visa services. India blamed Pakistan for the April 22 assault, withdrew from a crucial water-sharing pact over the Indus River, and reduced its diplomatic presence in Islamabad. Pakistan rejected the allegations, demanded a neutral inquiry, and imposed a blanket suspension on trade with India — even via third countries. Trade ties between the two neighbours have been virtually frozen since 2019, and the Wagah-Attari land crossing, the primary official trade route, has also been sealed. Despite the breakdown in formal trade, experts say the actual level of commerce between the two countries is significantly higher, driven by indirect routes that bypass official scrutiny. Did India and Pakistan ever have robust trade relations?Yes. Trade commenced soon after the 1947 partition of British India. In 1996, India granted Pakistan “Most Favoured Nation” (MFN) status under World Trade Organization rules, mandating equal treatment among trading partners. Still, political friction, particularly over Kashmir, prevented trade from reaching its full potential. In the fiscal year 2017–18, official bilateral trade reached $2.41 billion, with India exporting $1.92 billion worth of goods and importing $488.5 million. However, after a deadly 2019 suicide bombing in Pulwama, India revoked Pakistan’s MFN status. By 2024, total trade had fallen to just $1.2 billion. Pakistan’s exports to India plunged from $547.5 million in 2019 to merely $480,000 by 2024. What’s the current state of official trade?Between April 2024 and January 2025, India’s exports to Pakistan stood at $447.7 million, while Pakistan’s exports totaled just $420,000, according to India’s Ministry of Commerce. India primarily exports pharmaceuticals, petroleum products, rubber, plastics, organic chemicals, spices, dairy, and cereals. Pakistan’s main exports to India include copper, glassware, fruits, oilseeds, and sulphur. Rubio calls India and Pakistan in effort to defuse crisis over Kashmir attack Trade lawyer Shantanu Singh noted that Pakistan’s pharmaceutical sector, which depends heavily on Indian imports, is likely to be hit hardest. He also pointed out that closing the Wagah-Attari Integrated Check Post (ICP) — the sole operational land trade route — will increase logistical costs and affect regional trade, particularly with Afghanistan. Is actual trade higher than reported?Yes. While official data puts Indian exports to Pakistan at $447.7 million, estimates from the Global Trade Research Initiative (GTRI) suggest the real volume could be as high as $10 billion annually. This occurs through indirect channels, using countries like the UAE, Sri Lanka, and Singapore as intermediaries. How does this backchannel trade operate?According to GTRI founder Ajay Srivastava, Indian goods are first shipped to hubs like Dubai, Singapore, and Colombo. These goods are stored in bonded warehouses, where documents and origin labels are altered before being re-exported to Pakistan under a new country of origin. Srivastava explained that while this "grey-zone" trade may not always be illegal, it enables commerce to continue discreetly and profitably despite official restrictions. Is such trade common globally?Yes. Similar tactics are used worldwide to sidestep trade restrictions. Economist Jayati Ghosh cited India as a key transshipment point for Russian oil heading to Europe since the Ukraine war. In 2023, India imported 1.75 million barrels per day of Russian crude — up 140% from 2022 — making up 40% of its total crude imports in 2024. Likewise, economist Biswajit Dhar said China has long routed its exports to India via ASEAN countries to benefit from preferential trade terms, avoiding high tariffs that apply to direct Chinese imports. Dozens of tourist resorts in Indian-controlled Kashmir are closed after deadly attack Can informal India-Pakistan trade continue?Efforts are underway in both countries to monitor and potentially curb this unofficial trade. Pakistan’s new ban includes third-country trade routes, and Indian authorities are collecting data on indirect exports. However, enforcing these restrictions is challenging since private businesses — not governments — handle most of the rerouting and relabelling. Customs officials in Pakistan must determine whether imported goods truly originate from a listed third country or are merely Indian products disguised to bypass trade bans. Singh noted that proving the origin requires importers to provide documentation under Pakistani law. He stressed that increased scrutiny of imports may be necessary. Still, demand in Pakistan for Indian goods — especially given shared cultural preferences — ensures this trade is likely to persist. Higher margins and market demand incentivize traders to maintain indirect routes. As Singh put it, “This trade will continue because the demand exists. Traders won’t willingly give up a profitable business.” Dhar added that unless traders cooperate fully — which is unlikely — enforcing trade bans may prove futile. Have there been previous trade disruptions?Yes. The 1965 war halted trade, but the Tashkent Agreement in 1966 gradually restored ties. The 1971 war — leading to Bangladesh’s independence — again strained relations. Although the 1972 Simla Agreement aimed to normalise ties, trade has remained volatile. Tensions persist along India-Pakistan Kashmir border amid cross-border skirmishes In 2019, after the Pulwama bombing, India imposed 200% import duties on Pakistani goods. Months later, it revoked Jammu and Kashmir’s special status, prompting Pakistan to downgrade diplomatic relations and suspend trade. Since then, no formal trade negotiations have resumed. Source: With input from agency

General Motors is lowering its profit expectations for the year as the carmaker braces for the potential impact from auto tariffs being rolled out by the US. GM announced early this week that it was reassessing its expectations for 2025 due to tariffs. The company said at the time that its initial full-year financial outlook didn’t contemplate their potential impact, reports AP. On Thursday the automaker said that it now foresees full-year adjusted earnings before interest and taxes in a range of $10 billion to $12.5 billion. The guidance includes a current tariff exposure of $4 billion to $5 billion. GM previously predicted 2025 adjusted EBIT between $13.7 billion and $15.7 billion. The revised forecast comes after President Donald Trump signed executive orders Tuesday to relax some of his 25% tariffs on automobiles and auto parts, a significant reversal as the import taxes threatened to hurt domestic manufacturers. Tariffs, oil prices and other uncertainties weighing down Mideast economies, IMF says Automakers and independent analyses have indicated that the tariffs could raise prices, reduce sales and make US production less competitive worldwide. Trump portrayed the changes as a bridge toward automakers moving more production into the United States. Still, it remains unclear what impact Trump’s broader tariffs will have on the US economy and auto sales. Most economists say the tariffs — which could ultimately hit most imports — would raise prices and slow economic growth, possibly hurting auto sales despite the relief that the administration intends to offer on its previous policies. In a letter to shareholders on Thursday, General Motors CEO Mary Barra said that the automaker looks forward to maintaining its strong dialogue with the Trump administration on trade and other evolving policies. “As you know, there are ongoing discussions with key trade partners that may also have an impact,” she said. “We will continue to be nimble and disciplined and update you as we know more.” Shares of GM climbed more than 2% before the opening bell.

Countries across the Middle East and North Africa face significant challenges to economic growth as the region faces economic uncertainty due to tariff measures, lower-than-recent oil prices and cuts to financial aid, the International Monetary Fund said Wednesday. The IMF's regional outlook report for the MENA region said Brent crude oil prices — which are down from highs above $120 a barrel in 2022 — are likely to be $65 to $69 per barrel in 2025 and 2026, making energy-exporting economies vulnerable to market fluctuations. Tariff plans by the U.S. and other countries and geopolitical tensions also have created mounting economic uncertainty globally that is weighing down on the region's economies, which could negatively impact their growth by anywhere from 2% to 4.5%, said Jihad Azour, director for Middle East and Central Asia at the IMF. "Therefore countries need to react and need to devise policies in order to protect their economies,” Azour said in an interview in Dubai. Caterpillar warns tariffs may raise Q2 costs by $350m as sales decline Reductions in foreign aid coming into the region also will play a role, Azour said, as U.S. President Donald Trump has pulled his country back from its position as the world’s single largest aid donor. “The drop in international assistance, especially for countries in fragility, is something that is creating new risks for the region,” Azour said. Growth in the MENA region is expected to be 2.6% this year, as compared to 1.8% last year, Azour said, but he added that global uncertainty could impact the outlook. Economies in the Persian Gulf continue to attract substantial foreign direct investment, rising by nearly 2% of GDP since the pandemic, while other MENA nations struggle with slower inflows. The IMF says it is willing to work with some of the struggling nations and the new government in Syria. He also said that IMF staff and Lebanese officials were in discussions in Lebanon. “The Syria recovery will be a long process that would require mobilization of regional and international support and also a comprehensive program of building institutions, reforming their economy, and also addressing a certain number of key issues like infrastructure, refugees and rebuilding a new social contact,” Azour said. Samsung sees revenue boost from smartphone sales despite chip slump Despite the global economic uncertainty, MENA nations can drive growth through structural reforms and diversifying economic ties, the report said.

Caterpillar Inc on Wednesday said it expects tariffs could push its second-quarter costs up by as much as $350 million, as the company reported a drop in first-quarter sales amid weakening demand for its machinery. Despite recent developments in the US trade policy — including President Donald Trump’s order on Tuesday easing tariffs on imported cars and parts — uncertainty remains over the broader impact of the ongoing trade war on the American economy, reports AP. The construction and mining equipment maker reported revenue of $14.25 billion for the first quarter, down from $15.8 billion a year ago. The figure also fell short of the $14.54 billion forecast by analysts surveyed by Zacks Investment Research. Sales volume fell by $1.1 billion, while dealer inventories increased by $100 million — a notable decrease compared to the $1.4 billion inventory build in the same period last year. Samsung sees revenue boost from smartphone sales despite chip slump Net income dropped to $2 billion, or $4.20 per share, compared with $2.86 billion, or $5.75 per share, a year earlier. Excluding restructuring costs, adjusted earnings were $4.25 per share, slightly below Wall Street’s expectation of $4.30 per share. Earlier in April, Caterpillar announced that CEO D. James Umpleby III will transition to executive chairman on 1 May, with Chief Operating Officer Joseph Creed set to take over as CEO and join the board. Umpleby has held the top role for eight years. Caterpillar expects second-quarter sales to remain similar year-over-year and forecasts a slight decline in full-year sales, consistent with previous guidance. Shares rose over 3% in premarket trading.

Samsung Electronics reported a record-high consolidated revenue of 79.14 trillion won ($56 billion) for the January–March quarter, driven by strong sales of its flagship Galaxy S25 and other premium smartphones. The tech giant’s operating profit rose slightly to 6.7 trillion won ($4.7 billion), up from 6.61 trillion won ($4.6 billion) in the same period last year, reports AP. Weak grid investment slows Asia-Pacific energy transition: ADB However, the company’s semiconductor business saw a sharp decline in profitability. Operating profit for the division fell to 1.1 trillion won ($774 million), down from 1.91 trillion won ($1.3 billion) a year ago. Samsung attributed the decline to falling average selling prices and reduced demand for high-bandwidth memory, as customers await next-generation chip releases. While the mobile business continues to drive growth, the chip unit—historically a key profit engine for Samsung—faces pressure from market uncertainties and cautious customer spending. The company expects the launch of new memory products to revive demand in the coming quarters.

Bankers, financial experts, and public officials convened in Dhaka on Tuesday to call for comprehensive reforms in Bangladesh’s banking sector in light of global economic shifts and internal systemic vulnerabilities. The dialogue, titled “Global Financial Trends and Reforms: Implications for Bangladesh,” was organised by the International Chamber of Commerce, Bangladesh (ICCB), and held at a city hotel. Discussions were set against the backdrop of evolving global financial dynamics—including the potential impact of US tariffs—and alarming findings from the World Bank’s recent Bangladesh Development Update, which underscored deep-rooted weaknesses in the country’s financial system. Mahbubur Rahman, president of ICC Bangladesh, warned that the full implementation of US tariffs could severely impact Bangladesh’s banking system by reducing export earnings, tightening foreign currency liquidity, and increasing non-performing loans (NPLs), particularly in trade-reliant sectors. “It is imperative for Bangladesh to adopt resilient financial strategies and regulatory reforms that safeguard economic stability against such external shocks,” Rahman said. He added that despite resilience in several economic areas, the structural frailties within the financial sector remain a major challenge. Citing the World Bank report, Rahman noted that gross NPLs have doubled to over Tk 2.9 trillion, with nearly half concentrated in nine state-owned banks. He pointed to capital shortages, weak adoption of international standards, and an inadequate legal framework for loan recovery as critical issues in need of immediate reform. “The recent reform initiatives by the interim government and Bangladesh Bank are beginning to uncover the full extent of these risks. The message is clear—reform is not optional, it is essential,” he stated. ICC Vice President A.K. Azad called on the International Chamber of Commerce (ICC) and the World Trade Organization (WTO) to address the repercussions of US tariff policies on countries like Bangladesh. He also emphasised the need for international support in settling insurance claims for factories damaged during political unrest, and urged the central bank to liberalize the exchange rate regime. Florian Witt, chair of the ICC Global Banking Commission, echoed the need for structural reforms. In his keynote address, he proposed the recapitalisation of state-owned banks and a strategic reduction of NPLs. He also recommended facilitating mergers to create stronger banking entities, conducting forensic audits of troubled banks, and strengthening Tier-1 capital. Witt highlighted the importance of adopting international standards for NPL categorisation and noted the shifting future of banking toward the Global South. 21 BSEC officials suspended, chairman calls for unity Deputy Governor of Bangladesh Bank Md. Zakir Hossain Chowdhury remarked that while the central bank has recently undertaken numerous reforms, it is too early to assess their outcomes. He affirmed that Bangladesh Bank continues to consult with stakeholders, the private sector, and development partners. Abdul Hai Sarker, chairman of the Bangladesh Association of Banks and Dhaka Bank PLC, expressed optimism that coordinated efforts among stakeholders could help Bangladesh navigate emerging global challenges. Selim RF Hussain, chairman of the Association of Bankers Bangladesh (ABB), described the current phase of globalisation—“Globalisation 2.0”—as markedly different from previous eras, shaped by fast-evolving geopolitical realities. “Small countries like Bangladesh may not influence these global shifts, but they must respond collectively and decisively,” he said. Enamul Huque, managing director of Standard Chartered Bank Bangladesh, suggested that Bangladesh  shift focus toward high-value apparel items such as manmade fiber (MMF) to remain competitive amid tariff pressures. Md. Mahbub Ur Rahman, CEO of HSBC Bangladesh, observed major changes in the global supply chain, including increased south-south trade. He emphasised the need for Bangladesh to strengthen infrastructure, logistics, and supply chain mechanisms. He also flagged imbalances in trade practices, noting that many businesses import goods using letters of credit (LCs) while exporting based on contracts. Dr. Shah Md. Ahsan Habib, Professor at the Bangladesh Institute of Bank Management (BIBM), highlighted the uniqueness of Bangladesh’s banking challenges, cautioning against wholesale adoption of developed countries’ practices. “Our financial literacy and risk management capabilities are still evolving,” he said, though he acknowledged that several banks and businesses are performing well and offer models worth replicating. Bidyut Kumar Saha, Lead Investment Officer at the Asian Development Bank (ADB), emphasized that many of the sector’s vulnerabilities are internal. “Regardless of global developments, the ongoing reforms by the government and the central bank must continue in full force,” he said, reiterating ADB’s commitment to supporting these efforts. The event concluded with remarks from ICCB Secretary General Ataur Rahman, reaffirming the organization’s support for inclusive dialogue and collaborative reform to ensure a stable and competitive financial future for Bangladesh.

Chief Adviser Professor Muhammad Yunus on Wednesday directed the persons concerned to quickly settle discussions with potential foreign investors to increase the capacity of Chattogram port with world-class services in an effort to make the country an investment hub. "We’ll have to involve such operators in port management so that our ports can gain the ability to compete in the international market. We must make our ports world-class to implement the investment hub that we are talking about,” he said. The Chief Adviser made the directives at a high-level meeting with officials of the Ministry of Shipping, Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zone Authority (BEZA), Chittagong Port Authority and other relevant departments at the State Guest House Jamuna. The Chief Adviser urged all the concerned departments to complete the work by August through proper coordination. BIDA and BEZA Executive Chairman Chowdhury Ashik Mahmud Bin Harun informed the meeting that the current handling capacity of Bangladesh's seaports is 1.37 million units per year, which can be increased to 7.86 million units in the next five years through proper planning and action. He said that the currently operational New Mooring Container Terminal (NCT) of Chattogram Port is capable of handling 1.27 million units per year and Mongla Port is capable of handling 0.1 million units. Their capacities can be increased to 1.5 million and 0.63 million respectively. BIDA, police assure top foreign investors of full safety, security Ashik said once the construction of Patenga Container Terminal, Laldia Container Terminal, Bay Terminal and Matarbari Deep Sea Port is completed, Bangladesh will have a handling capacity of more than five million units. He informed the Chief Adviser about the overall progress in the speedy completion of the Laldia Port work for foreign investment. Shipping Adviser Brigadier General (Retd) Dr M. Sakhawat Hossain, Chief Adviser’s Special Envoy on International Affairs Lutfey Siddiqi, Senior Secretary to the Ministry of Shipping Mohammad Yusuf, Secretary to the Chief Advisor's Office Md. Mahmudul Hossain Khan, Chief Executive Officer of the Public Private Partnership Authority (PPPA) Muhammad Rafiqul Islam and Chairman of the Chittagong Port Authority Rear Admiral S. M. Moniruzzaman, among others, were present.