United News of Bangladesh

The International Monetary Fund (IMF) has emphasized that Bangladesh requires extensive reforms across three critical sectors, including financial, fiscal, and foreign exchange. According to the global lender, significant work remains to be done in each of these areas to ensure economic stability. Krishna Srinivasan, Director of the IMF's Asia and Pacific Department, made these remarks on Thursday while responding to questions from Bangladeshi journalists at a press conference in Washington, D.C. The briefing was attended by media representatives from India, Nepal, Sri Lanka, and South Korea, among other nations. The briefing took place on the sidelines of the World Bank-IMF Spring Meetings, which commenced on April 13 and are scheduled to conclude on April 18. A 14-member Bangladeshi delegation, led by Finance and Planning Minister Amir Khosru Mahmud Chowdhury and Bangladesh Bank Governor Md. Mostaqur Rahman, is currently attending the meetings. Reflecting on his visit to Bangladesh on March 24, where he met with Prime Minister Tarique Rahman and the Finance Minister, Srinivasan shared his impressions of the new government's capacity for reform. "I visited Bangladesh and held meetings with the Prime Minister and other high-level officials. We discussed the challenges ahead," Srinivasan stated. "I noted that a government with a strong majority has the opportunity to undertake ambitious reform agendas. They have listened to our suggestions; now we must wait and see how they respond," he opined. The IMF Director expressed concern over Bangladesh's revenue collection performance. "In terms of revenue mobilization, Bangladesh has not performed well. It remains at a low level and has seen further deterioration over the last three years," he noted. Regarding the release of the next loan tranche, he mentioned that discussions are ongoing, and updates would be provided in due course. Highlighting the situation in Sri Lanka, Srinivasan pointed out that under its IMF-supported program, the country has made significant strides in increasing its tax-to-GDP ratio over the last three years, gradually building financial buffers. He noted that Sri Lanka is now in a relatively better position to support citizens affected by energy price shocks. Srinivasan warned that because Bangladesh has a small revenue base, the government faces greater pressure when trying to provide social safety nets. "The people of Bangladesh are suffering. Therefore, it is crucial that whatever resources Bangladesh possesses are utilized with maximum target-based efficiency," he urged. He advised Bangladesh to focus on increasing revenue collection while addressing other barriers in the financial sector to boost both short-term and long-term growth. Like other Asian nations, Bangladesh has been impacted by global energy shocks, and Srinivasan concluded that policy support and program discussions are active, with the outcome depending on how effectively these dialogues progress.

Bangladesh's agent banking revolution has a paradox at its heart; over the past decade, the country has built one of South Asia's most extensive agent banking networks over 21,000 outlets stretching from the river deltas of Barishal to the highland fringes of the Chittagong Hill Tracts, twenty-four million accounts have been opened, the majority by people in rural areas who had never held a bank account in their lives. But a new policy brief by the International Growth Centre (IGC) found that while agent banking in Bangladesh has significantly widened financial access over the past decade, major gaps remain in credit delivery and gender participation. The study, hosted by the University of Oxford and the London School of Economics and Political Science (LSE) and published recently, analysed more than 21,000 agent banking outlets across the country, offering one of the most comprehensive assessments of the sector to date. It highlights a “strong expansion but incomplete inclusion” narrative, where outreach has improved markedly but deeper financial intermediation, particularly access to credit remains limited. The agent banking model was introduced in Bangladesh in 2013 with a clear mandate: to extend financial services to communities beyond the reach of conventional bank branches, reducing operational costs by routing services through local agents. By 2016, the network had 2,601 outlets. By 2024, that figure had surged to over 21,000, a more than eightfold increase in under a decade. However, the report notes that this rapid physical expansion is beginning to plateau, suggesting the sector may be approaching saturation in terms of outlet growth. Future progress, it says, will depend more on improving service depth rather than increasing geographic coverage. Agent banking has also reshaped the country’s financial geography. Unlike traditional banking where Dhaka and Chattogram dominate agent banking has spread more evenly, with rural areas hosting significantly higher outlet density per capita. Despite these gains, the study flags a critical weakness: limited credit provision. As of December 2024, nearly two-thirds of agent banking outlets had no outstanding loans, indicating that most agents primarily facilitate deposits, withdrawals and remittance services rather than lending. “Without access to credit, financial inclusion remains incomplete,” the report notes, stressing that credit is essential for households to manage economic shocks and invest in income-generating activities. Although cumulative loan disbursement through agents reached Tk 240.3 billion by 2024, credit growth remains significantly lower than deposit mobilisation, with a loan-to-deposit ratio of 57.3 percent, indicating a continued gap in financial intermediation. The so-called “zero-loan phenomenon” is particularly acute in remote and structurally disadvantaged regions, including parts of the Chattogram Hill Tracts, where geographic and infrastructural challenges persist. The findings confirm that agent banking has developed a strong rural footprint, with significantly more outlets per capita compared to traditional bank branches in rural areas. Rural deposits have also grown steadily, indicating improved access to formal financial services. However, credit penetration in these areas remains comparatively weak. The report also finds that agent banking expansion often follows existing banking infrastructure, rather than independently targeting underserved or poorer regions, raising concerns about whether the model is fully addressing financial exclusion. Gender gap remains stark The study reveals a mixed picture on gender inclusion. While female participation as customers is rising women’s account ownership has been growing faster than men’s in recent years, the supply side remains overwhelmingly male-dominated. More than 92% of agent operators are men, leaving women significantly underrepresented in the delivery of financial services. This gap is not merely symbolic: female agents have been shown in multiple financial inclusion studies across South Asia to be more effective at reaching female clients in communities where social norms constrain women's interactions with male service providers. A network that is overwhelmingly male-operated may therefore be structurally limiting its own ability to deepen inclusion among the women it is nominally reaching as customers. This imbalance, the report suggests, may limit accessibility and trust for female clients in certain communities. With expansion slowing, the IGC urges policymakers to shift focus from scaling the network to strengthening its functionality. Key recommendations include incentivising banks to extend credit through agent outlets, deploying digital tools for credit scoring and loan processing, and adopting targeted strategies for underserved regions. The report also calls for stronger efforts to increase female participation in the agent network, including enforcing existing gender inclusion policies. “Bangladesh’s agent banking experience reflects strong outreach but incomplete financial deepening,” the study concludes, adding that the next phase must prioritise equitable and effective financial inclusion.

A three-day international exhibition titled “11th Safecon 2026” has begun in Dhaka to enhance international cooperation in the renewable energy and infrastructure sectors. The exhibition was inaugurated at the International Convention City Bashundhara (ICCB) the capital’s Kuril on Thursday. Organized by Savor International Limited, the exhibition will remain open to all visitors from 16 April to 18 April every day from 10 am to 7 pm, said a media statement. Postmaster Communication is serving as the Event Partner of the exhibition. The event was inaugurated by the Special Guest Mostafa Al Mahmud, President, Bangladesh Sustainable and Renewable Energy Association (BSREA).   Bilal Belyurt, Commercial Counsellor, The Embassy of Türkiye in Dhaka, Arefeen Raafi Ahmed, 2026 National President, JCI Bangladesh, Sunghoon Lee, Deputy Director, Korea Trade-Investment Promotion Agency (KOTRA), Wang Hongbo, Vice President, Chinese Enterprises Association In Bangladesh (CEAB), A.Z.M. Azizur Rahman, Senior Vice President, Bangladesh China Chamber of Commerce & Industry (BCCCI), and Md. Faizul Alam, Managing Director of Savor International Limited, were also present at the programme. The objective of the “11th SAFECON 2026” exhibition is to enhance facilities and opportunities in the infrastructure construction materials, water management, timber, engineered wood and technology, power industry sectors. “SAFECON 2026” serves as a business platform where companies from both local and international markets have the opportunity to showcase their products, technologies, and solutions, which will contribute to the development of the country’s infrastructure. The exhibition aims to strengthen B2B collaboration and the exchange of experience, and to inspire policymakers, engineers, entrepreneurs, and foreign investors involved in national development to explore new avenues for a progressive and sustainable future.  The event will play a significant role in expanding business networking, facilitating technology exchange, and creating new investment opportunities. It will also strengthen collaboration among policymakers, engineers, entrepreneurs, and foreign investors. A total of 400 stalls from more than 10 countries including Bangladesh, China, Korea, Turkey, India, Malaysia, and Singapore are taking part in the expo. The domestic and international companies related to infrastructure construction, power generation, renewable energy, water management, infrastructure equipment and machinery, timber, engineered wood, and technology are participating in the exhibition.

Eastern Bank PLC (EBL) has recommended a 25% cash dividend and a 3% stock dividend for the year ending on December 31, 2025, reflecting improved earnings and strong asset quality. The decision was taken at a meeting of the board of directors, according to a disclosure made by the Dhaka Stock Exchange (DSE) on Thursday. The bank has reported consolidated earnings per share (EPS) of Tk 5.23 for 2025, up from Tk 4.14 (restated) a year earlier. On a standalone basis, EPS rose to Tk 5.65 from Tk 4.70 (restated). Net asset value (NAV) per share also increased to Tk 31.86, compared to Tk 27.16 (restated) in 2024, while consolidated NAV stood at Tk 31.38, up from Tk 27.09 (restated). The consolidated net operating cash flow per share (NOCFPS) climbed to Tk 20.12 from Tk 15.09 (restated) in the previous year. The bank said the stock dividend has been recommended to strengthen its capital base to support future business growth and improve regulatory ratios. It clarified that the stock dividend will be issued from current year’s profit and not from any capital reserve, revaluation reserve, or unrealised gains. EBL’s asset quality remained robust, with its non-performing loan (NPL) ratio declining to 2.24% in December 2025, significantly lower than the industry average of 30.60%. The bank will hold its annual general meeting (AGM) on June 11, 2026 through a virtual platform. The record date has been fixed for May 6, 2026.

After a hiatus of nearly two months, Bangladesh Bank (BB) has resumed purchasing US dollars from commercial banks through auctions to maintain stability in the foreign exchange market and keep the exchange rate under control. Bangladesh Bank spokesperson Arif Hossain Khan said the central bank bought $50 million from four commercial banks on Thursday at a cut-off rate of Tk 122.75 per dollar. This followed a purchase of $70 million at Tk 122.70 per dollar on Wednesday. With these transactions, the central bank has purchased a total of $120 million so far in April. In the current fiscal year FY2025–26, the total dollar purchase by the central bank stands at $5.61 billion. A high-ranking official of the central bank said banks were verbally instructed earlier this week to purchase remittance dollars at a maximum rate of Tk 122.90. However, by buying dollars at a slightly lower rate through the auction, the central bank sent a clear signal to the market that its goal is to stabilise the rate around Tk 122.75. The market has recently felt some pressure due to geopolitical tensions, particularly surrounding US-Iran tensions, causing some banks to acquire dollars at higher rates. However, central bank officials expect the situation to normalize soon, leading to a potential dip in the exchange rate.  

Shares around the world rose as investors grew optimistic of a ceasefire extension in the Iran war. In Europe, Britain’s FTSE 100, France’s CAC 40 and Germany’s DAX were all up by around 0.5%. In Asia, Tokyo’s Nikkei 225 closed 2.4% while Hong Kong’s Hang Seng rose 1.7% to 26,394.26. The Shanghai Composite index ended 0.7% higher. Pakistan’s army chief is set to meet with Iranian officials in Tehran on Thursday in a bid to extend the ceasefire which paused almost seven weeks of war between Israel, the U.S. and Iran that have killed thousands of people and upended global markets by disrupting the flow of oil.  Uncertainty remains whether the frantic diplomacy can lead to a deal. The meeting comes as President Donald Trump announced the leaders of Israel and Lebanon will speak later on Thursday about halting the fighting between them.  If it takes place, the conversation would be the first time the leaders of the two countries have spoken directly in more than 30 years.  Both Israeli and Lebanese governments refused to confirm a conversation.  

Bangladesh's capital market closed the week on a cautious note on Thursday, with both Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) recording marginal index gains while the majority of listed companies saw their share prices decline. At the DSE, the benchmark DSEX index edged up by just one point, the blue-chip DS30 rose six points, while the Shariah-based DSES remained flat. This offered little comfort to investors as decliners significantly outnumbered gainers. Of the total companies traded on the DSE, 201 saw price falls against 131 gains, while 62 remained unchanged. Turnover also slipped with total transactions falling Tk 30 crore from the previous session to stand at Tk 806 crore, compared to Tk 836 crore the day before. In the block market, shares worth Tk 26 crore changed hands across 38 companies, with Al-Arafah Islami Bank PLC topping the block board at Tk 3.80 crore. Legacy Footwear Limited led the gainers' chart with a 6.25% price increase, while Premier Leasing and Finance Limited bore the steepest loss, shedding over 7% of its value. The CSE mirrored a similar trend, the CASPI gained nearly five points yet failed to reflect broader market health. Of the companies traded, 88 recorded price declines against 86 that advanced, while 34 remained unchanged. Daffodil Computers PLC surged nearly 10% to top the gainers' list, whereas Apex Tannery Limited shed close to 10% to finish at the bottom. Market analysts note that the divergence between index movements and broader price declines suggests selective buying in heavyweight stocks, with overall investor sentiment remaining subdued.

The visiting delegation of the Dhaka Chamber of Commerce & Industry (DCCI) participated in the 6th Guangzhou Sourcing Fair on Wednesday, seeking to expand trade and investment linkages between Bangladesh and China. The delegation, led by DCCI Senior Vice President Razeev H Chowdhury, held B2B matchmaking sessions with around 150 Chinese supplier companies representing sectors, including hardware and tools, automobiles, motorcycles and spare parts, home appliances, and building and construction materials. Speaking at a bilateral discussion on supply chain issues held on the sidelines of the fair, Razeev highlighted the depth of the bilateral relationship, noting that Bangladesh and China share a long-standing multidimensional partnership spanning trade, investment, infrastructure, education, and human resource development. He said total bilateral trade between the two countries reached USD 18.89 billion in FY2025, with Bangladesh's imports from China amounting to USD 18.20 billion against exports of USD 694.49 million, pointing to a significant trade imbalance that both sides acknowledged needs to be addressed. Razeev also extended an invitation to Chinese entrepreneurs to invest in Bangladesh, citing textiles and textile products, machinery, chemicals, metals, plastics, minerals, and agro-based products as priority sectors. Nicole Fan, Director of Poly Jinhan Exhibition (Poly Events), which organises the fair, said the platform will serve as an important bridge between entrepreneurs of the two countries. She expressed optimism that greater Bangladeshi participation in future editions of the fair will open new avenues of collaboration with China's vast supplier network. The Guangzhou Sourcing Fair, now in its sixth edition, has emerged as a key platform for connecting South and Southeast Asian buyers with Chinese manufacturers and exporters across a wide range of industrial and consumer goods sectors. The 22-member DCCI delegation went to on Wednesday on a five-day visit aimed at strengthening Bangladesh-China economic engagement and expand bilateral trade and investment cooperation.

China’s economy picked up pace in the first quarter of the year, growing 5% compared to the same period last year, as it largely withstood the early effects of the Iran war, according to official data released . The January–March figures, which cover the period when the conflict began, came in stronger than economists had predicted and improved from the 4.5% growth recorded in the previous October–December quarter. On a quarterly basis, the economy expanded by 1.3% in the first three months, marking its fastest growth rate in a year. Experts say China, the world’s second-largest economy, is likely to manage the short-term impact of the war, now in its seventh week. However, rising energy prices driven by the conflict are adding to inflation pressures and weighing on global growth. Over time, weaker global demand could affect Chinese exports. The International Monetary Fund recently lowered its 2026 growth forecast for China to 4.4%, reflecting broader global economic concerns linked to the conflict. Chinese authorities had earlier set a growth target of 4.5% to 5% for this year, the lowest since 1991. “China can likely weather short term disruptions, but a prolonged war and sustained high energy prices could begin to slow growth in the second half of the year,” said Lynn Song. Separate data released showed China’s industrial output rose 5.7% in March from a year earlier, beating expectations as global demand for electronics, vehicles, semiconductors and robotics remained strong. However, retail sales increased by just 1.7%, falling short of forecasts and slowing from 2.8% growth in the first two months of the year, highlighting weak domestic consumer demand. China’s prolonged real estate downturn has continued to hurt consumer and investor confidence. Still, the country achieved around 5% growth last year, supported by strong exports that pushed its trade surplus to nearly $1.2 trillion, despite higher tariffs imposed by US President Donald Trump. Economists say exports will remain a key driver of China’s economy this year, but heavy reliance on them could pose risks. “The lack of a quick resolution to the Iran war is likely to slow global growth, reducing other countries’ capacity to import Chinese goods,” said Eswar Prasad. He added that as countries focus on protecting their own economies from the impact of the conflict, demand for Chinese imports is likely to weaken. China reported earlier this week that exports grew 2.5% in March compared to a year earlier, a noticeable slowdown from the previous two months, partly due to seasonal factors. While economists believe China could still meet its annual growth target through policy support, concerns remain. Increased public investment may help sustain overall growth, but without stronger consumer demand, it could deepen deflation risks and further increase dependence on exports.

Bangladesh recorded an upward trend in remittance inflows receiving more than $1.6 billion in the first 14 days of April, with the total expected to exceed $3 billion by the end of the month. According to the latest data of Bangladesh Bank, expatriates sent $1.6 billion during April 1–14, compared with $1.28 billion in the same period last year, marking a 25.2 percent increase. In the current fiscal year (FY2025–26), cumulative remittance inflows from July to April 14 reached $27.81 billion, up from $23.06 billion during the corresponding period of FY2024–25. This represents a year-on-year growth of 20.06 percent. Analysts and central bank officials attributed the strong growth to several factors including a stable US dollar exchange rate, higher earnings among expatriates in developed economies and a gradual recovery in the global economy.