United News of Bangladesh

Bangladesh Bank has reduced the maximum penalty interest rate on overdue loans to 0.5 percent, aiming to boost investment and productivity amid the prevailing global economic challenges. According to a circular issued by the Banking Regulation and Policy Department (BRPD) on Wednesday, the central bank lowered the penalty interest cap from 1.5 percent to 0.5 percent. The directive, signed by BRPD Director Gazi Md Mahfuzul Islam, revises earlier guidelines issued in May 2024 on market-based interest rate determination. Under the revised rules, banks may now charge a maximum of 0.5 percent penalty interest on overdue loans or instalments. For continuous or demand loans, the penalty will apply to the entire outstanding amount, while for term loans, it will apply only to the overdue instalment. The central bank said the decision was taken in view of the “prevailing global economic situation” and the need to “increase investment and productivity”. The new instruction takes immediate effect, the circular said. It also clarified that all other provisions of BRPD Circular No. 10/2024 will remain unchanged, including the validity of actions already taken under the previous framework.

Turkish business leaders and Bangladesh's leading trade body DCCI explored new avenues for bilateral investment Wednesday as a seven-member delegation from Turkey met office bearers of the Dhaka Chamber of Commerce & Industry (DCCI) in the capital. The delegation was led by Burak Basegmezlar, Vice President of the Turkish Electro Technology Exporters' Association (TET), and attended by Turkey’s Ambassador to Bangladesh, Ramis Şen. Welcoming the visitors, DCCI President Taskeen Ahmed said Bangladesh and Turkey share longstanding friendly ties and expressed hope that such high-level business exchanges would give fresh momentum to bilateral trade. He disclosed that total bilateral trade between the two countries in FY 2024–25 stood at approximately USD 1.05 billion, with Bangladesh's imports from Turkey amounting to USD 416.76 million and exports reaching USD 634.53 million. “Turkish entrepreneurs have already invested USD 74.05 million across various sectors in Bangladesh.” Taskeen invited Turkish investors to explore both joint ventures and sole investments in sectors including readymade garments, leather and footwear, jute goods, agro-processed products, pharmaceuticals, light engineering, ICT services and software, home textiles, and consumer goods. Basegmezlar said Bangladesh presents strong demand for electronic equipment, home appliances and generators, and noted that Turkish investors are actively interested in entering these segments through both independent and collaborative arrangements. He announced that a Turkish business delegation from the electronics and electrical equipment sector is planning to visit Bangladesh in November, during which B2B sessions between private sector representatives of both countries would be held to unlock investment potential and deepen trade ties. Ambassador Şen underscored the considerable scope for expanding bilateral trade and said stronger business-to-business linkages are key to realising that potential. He noted that DCCI is well-placed to serve as an effective bridge between the private sectors of the two countries. DCCI Senior Vice President Razeev H Chowdhury and Vice President Md. Salem Sulaiman, among others, were present at the meeting.

Bangladesh Bank has signaled its intent to support the revival of closed industrial units through a strategic refinancing package, but has firmly ruled out blanket bailouts for non-viable or willfully defaulted businesses. The decision came following a high-level meeting between central bank officials and a delegation of industrial stakeholders at the Bangladesh Bank headquarters on Monday. Bangladesh Bank Governor  Md. Mostaqur Rahman chaired the meeting. During the meeting, stakeholders raised concerns about the growing number of shuttered factories. In response, the central bank clarified that while a refinancing package reportedly around Tk 40,000 crore is being considered, the support will be strictly merit-based.   "We need to investigate why these industries closed down—whether it was due to power shortages, lack of buyers, or market fluctuations," said Abdul Hai Sarker after the meeting. He is the Chairman of Bangladesh Association of Banks (BAB) and also Chairman of Purbani Group, who joined the meeting as a representative of the industrial delegation. "The Governor has assured us that only 'genuine' businesses facing temporary working capital shortages will be supported to ensure production resumes and defaults are avoided,” said BAB Chairman. The discussion also touched upon the controversial Section 18 (Ka) of the Bank Resolution Act. Business leaders expressed "deep apprehension" regarding the potential implementation of this law, fearing it might be misused to allow former directors—who were allegedly involved in past bank looting—to regain control of financial institutions. However, central bank sources indicated that the stringent conditions attached to the act would make it practically impossible for such controversial figures to meet the criteria for return. Stakeholders urged the government to handle this legislative matter with extreme caution to protect the sector from further "looting cultures." The central bank also reiterated that the planned merger of five specific banks will proceed without change. Despite initial skepticism from some quarters, the Governor emphasized that the merger is essential to put the banking sector back on "the right footing." Industrialists urged the government and the central bank to consult with general stakeholders before finalizing major policy interventions. "We are elected representatives and industrialists; we are here to share our fears and ground realities. Policy-making is more effective when it includes those who are actually operating in the sector," in response to a query of journalists, a representative of businessmen said.

In a major push to decentralise sustainable industrialisation, Bangladesh Bank has established a special Tk 1,000 crore refinancing fund dedicated to making rural and local industries environment-friendly. Under this scheme, entrepreneurs will be able to access credit at an interest rate of maximum 5 percent. The Sustainable Finance Department of the central bank issued a circular in this regard on Monday. According to the directive, this amount has been carved out of the central bank's existing Tk 5,000 crore Green Transformation Fund (GTF) specifically to support grassroots and localised industrial growth. The fund is designed to finance the import of environment-friendly machinery or the purchase of locally manufactured green equipment. Eligible sectors for financing include renewable energy (installation of solar and wind power systems), resource management (energy efficiency, water conservation, and wastewater management), waste management (recycling activities and waste-to-energy projects) and work environment (-improving factory safety and occupational health standards). The central bank has structured the fund to be highly attractive for both lenders and borrowers. The borrower interest rate has been capped at a maximum of 5 percent. Participating banks will receive funds from the central bank at a mere 1 percent interest. An individual entrepreneur can borrow up to Tk 5 crore and banks can provide up to 80 percent of the total import or purchase cost. The loan term ranges from two to five years, including a maximum six-month grace period. Eligibility and Mandatory Green Criteria To ensure the funds achieve their environmental goals, the central bank has set a mandatory condition: at least 10 percent of the total electricity used in the financed project must be sourced from renewable energy, such as solar power. Eligible Banks All state-owned commercial banks are eligible to distribute these loans. Private and foreign commercial banks must maintain a non-performing loan (NPL) ratio below 20 percent to participate. Loan defaulters (individuals or institutions) are strictly prohibited from accessing this facility. Impact on Local Industries Bangladesh Bank believes this initiative will significantly bolster the capacity and competitiveness of local industries. By lowering the cost of green technology, the fund is expected to accelerate the transition of small and medium-scale rural enterprises into sustainable, resource-efficient entities, aligning with the national goal of achieving a green economy.

In a significant move to ease international travel for Bangladeshis, Bangladesh Bank (BB) has allowed the remittance of mandatory visa bonds and refundable security deposits required by foreign embassies, high commissions, and other visa authorities. The central bank issued a circular on Sunday, instructing Authorized Dealer (AD) banks to facilitate such payments on behalf of visa applicants. According to the new directive, banks are now permitted to issue international or virtual cards in the name of the applicant, specifically for this purpose. These cards can be pre-loaded with the necessary bond or security deposit amount. Furthermore, existing international cardholders can reload their cards under their travel quota to cover these specific costs. However, the central bank emphasized that these funds must exclusively be used for visa-related financial requirements. A key clause in the circular mandates the swift repatriation of these funds once the relevant embassy or authority refunds the bond or security deposit. “Banks are required to maintain separate registries to track these transactions. They must regularly monitor and report the progress of fund returns to the central bank,” stated in the circular. Before remitting any funds, banks must verify several essential documents, including-a valid passport of the applicant, a formal requirement letter or invoice from the embassy or relevant authority, and references or acknowledgment letters related to the visa application. The central bank clarified that these transactions can be processed through Exporter’s Retention Quota (ERQ) accounts, Resident Foreign Currency Deposit (RFCD) accounts, or international cards issued against such accounts. Industry insiders believe this decision will remove a major bottleneck for Bangladeshi travelers, students, and professionals applying to countries that require financial guarantees as a prerequisite for visa approval, making the overall process more transparent and accessible.

Dhaka Chamber of Commerce & Industry (DCCI) on Monday urged the government to prioritise the development of inland waterway infrastructure to reduce the cost of doing business, calling for planned dredging, riverbank recovery and private sector involvement under a Public-Private Partnership (PPP) framework. DCCI President Taskeen Ahmed made the call during a meeting with Water Resources Minister Md Shahiduddin Chowdhury Anee at the Secretariat. Taskeen Ahmed said as a riverine nation, Bangladesh's inland waterways have historically been the most cost-effective means of transporting industrial raw materials and finished goods, yet their full potential remains underutilised due to siltation and illegal river encroachment. “We need to prioritise riverbank recovery, planned dredging and necessary infrastructural development so that the business community can benefit from cost-effective and efficient trade logistics,” he said. The DCCI President expressed optimism about the government's plan to excavate 20,000 kilometres of canals over the next five years, saying the initiative will significantly boost inland water transport, ease business costs and simultaneously improve irrigation, agricultural productivity and overall economic growth. He also highlighted the strategic value of an approximately 112-kilometre circular waterway connecting the Buriganga, Turag, Balu, Shitalakkhya and Dhaleshwari rivers around the capital, describing it as a viable alternative transport corridor that could help ease Dhaka's chronic traffic congestion. Responding positively, Minister Anee reaffirmed the government's commitment to sustainable development of inland waterways and said several initiatives have already been set in motion. He called on the private sector to actively participate in the nationwide canal excavation programme, noting that its successful completion will foster environment-friendly transport networks and stimulate local economic activity across the country. DCCI Senior Vice President Razeev H Chowdhury, Vice President Md Salem Sulaiman and acting Secretary General Dr AKM Asaudzzaman Patwary were also present at the meeting.    

Bangladesh Bank has directed all commercial banks to set up dedicated counterfeit currency detection booths at cattle markets across the country to ensure the security of large-scale cash transactions during the upcoming Eid-ul-Azha. The central bank issued a circular in this regard recently asking banks to deploy note-counting and currency authentication machines to prevent the circulation of fake notes during the peak sacrificial animal trading period. According to the directive, each commercial bank must appoint a focal coordinating officer for the operation and submit their names, designations and contact details to Bangladesh Bank by May 17. For cattle markets in Dhaka North and South City Corporations, specific banks have been assigned individual markets to operate booths until the night before Eid. Outside Dhaka, Bangladesh Bank’s regional offices will coordinate the arrangement, while Sonali Bank will lead coordination in districts where the central bank has no branch presence. The circular also instructed that the booths must provide uninterrupted service throughout the trading period up to Eid night. Banks have been asked to maintain close coordination with local administrations, city corporations, municipalities and law enforcement agencies to ensure smooth operations and security. In Dhaka North, banks including Islami Bank, Shimanto Bank, AB Bank, National Bank, Al-Arafah Islami Bank, Eastern Bank, IFIC Bank, Meghna Bank, United Commercial Bank, City Bank, Agrani Bank, BRAC Bank, Dutch-Bangla Bank, Bank Asia, Jamuna Bank, Shahjalal Islami Bank and BASIC Bank have been assigned responsibilities. In Dhaka South, 19 banksincluding Premier Bank, Uttara Bank, Dutch-Bangla Bank, Bangladesh Krishi Bank, Dhaka Bank, Rupali Bank, Janata Bank, One Bank, Modhumoti Bank, Community Bank, Pubali Bank, Mercantile Bank, NCC Bank and Sonali Bank—have been deployed to operate detection booths across 13 designated cattle markets. Central bank officials said the initiative is aimed at safeguarding financial transactions during the festive season and ensuring confidence among buyers and sellers in a cash-intensive market.  

The government is undertaking a series of measures to ensure transparency, accountability and effective oversight in the country's essential commodities market, Commerce Minister Khandakar Abdul Muktadir said Monday. The government has initiated strategic reserve building, AI-powered supply chain monitoring and enhanced TCB capacity to prevent any form of syndication or market manipulation in the daily commodities sector, said the minister at the inauguration of the Trading Corporation of Bangladesh's (TCB) truck sale programme ahead of Eid-ul-Azha at Agargaon in the captial. No scope to hike essentials’ prices citing fuel costs: Commerce Minister “No syndicate or market manipulation will be allowed to take hold in the essential commodities market. Strategic reserves, artificial intelligence-based supply chain surveillance and a stronger TCB are our instruments to ensure that,” the minister said. He said the government's primary goal is to ensure subsidised essential food items reach low-income, lower-middle-income and marginalised communities across the country. TCB regularly sells goods at subsidised rates nationwide, with special truck sale drives during major festivals. Muktadir said approximately 2.28 crore beneficiaries received subsidised food during the last Ramadan, a figure now being expanded to about 2.88 crore. Similarly, food supply through TCB during last year's Eid-ul-Azha stood at around 10,900 tonnes, which has been raised to approximately 14,000 tonnes this year, an increase of nearly 40 percent. “Whenever there is an unusual market situation, a festival or abnormal price pressure, the government will activate TCB truck sales as needed. We are always prepared to ensure food security for people,” he said. On beneficiary verification, the minister disclosed that around 59 lakh of the one crore beneficiaries on the previous list were found to be questionable. Following thorough verification, 80 lakh genuine beneficiaries have been selected through a transparent process, with a further 20 lakh families to be included in phases. He added that new policies are being formulated to ensure transparency in TCB dealer appointments. “TCB is being transformed into a fully unquestionable, accountable and technology-driven institution.” He also expressed the government's intent to build a broader, partnership-based market ecosystem that allows more entrepreneurs to participate in the essential commodities sector and fosters healthy competition. “This government is firmly committed to establishing effective market oversight and control in the interest of the people. Our goal is a market that is transparent, stable and free from manipulation.” Commerce Secretary (Current Charge) Md Abdur Rahim Khan spoke as a special guest, while TCB Chairman Brigadier General Mohammad Faisal Azad delivered the welcome address. The minister formally opened the truck sale drive by selling TCB products to buyers at fair prices.

In a significant shift in global trade dynamics, Bangladesh has overtaken China to become the second-largest apparel exporter to the United States in the first quarter of 2026. The shift comes as steep "counter-tariffs" imposed by the Trump administration have gutted China’s market share, even as global demand remains sluggish. According to data from the Office of Textiles and Apparel (OTEXA), US apparel imports from the world fell by 11.63 percent to $17.73 billion during the January-March 2026 period. While nearly all major manufacturing hubs recorded negative growth, the scale of China’s collapse has allowed Bangladesh to climb the rankings despite its own moderate decline in earnings. The Tariff Impact: China vs. Bangladesh The reshuffling of the leaderboard is largely attributed to a series of aggressive trade policies. While Bangladesh’s exports to the US fell by 8.38 percent to $2.04 billion in the first quarter, China’s exports plummeted by a staggering 52.91 percent, falling to just $1.69 billion. Industry analysts note that this is a direct consequence of the reciprocal tariffs initiated in April 2025. While China faces massive hurdles, Bangladesh secured a strategic trade agreement on February 9, 2026, which reduced its specific counter-tariff rate to 19 percent. However, the legal landscape remains volatile. Following a February Supreme Court ruling that declared certain emergency tariffs illegal, the US administration applied a new 10 percent duty under the 1974 Trade Act. Just this past week, the US Court of International Trade issued a stay on these duties for specific importers, adding a layer of uncertainty for global buyers. Vietnam Maintains Dominance Despite the shifts between Bangladesh and China, Vietnam continues to hold the top spot. It was the only country among the top five suppliers to post positive growth, with its exports rising 2.77 percent to $3.98 billion. Vietnam now commands 22 percent of the US apparel market share, compared to Bangladesh’s 11.5 percent. Comparative Regional Performance (Jan-Mar 2026):  

Restaurant owners  in Bangladesh have urged the government to reduce Value-Added Tax (VAT), resume new pipeline gas connections  and end ‘bureaucratic harassment’ by regulatory agencies to protect the industry from mounting economic instability. Bangladesh Restaurant Owners Association (BROA) made the demand at a press conference held at Dhaka Reporters Unity (DRU) on Sunday, ahead of the national budget for the fiscal year 2026-27. The association also placed an 11-point demand  including maintaining VAT and tax rates at ‘tolerable levels’ and introducing a one-stop service for licenses and permits. While the VAT on the sector was previously reduced from 15 percent to 5 percent following discussions with the National Board of Revenue (NBR), leaders claimed they are still struggling under a 10 percent supplementary duty, source taxes, and various other levies. They called for a flat 5 percent VAT rate for canteens and catering services and the total withdrawal of source taxes. "High tax rates discourage compliance and lead to evasion," said BROA Secretary General Imran Hasan. "Reducing rates while expanding the tax net would ultimately increase government revenue." Hasan noted that the industry has yet to fully recover from the Covid-19 pandemic, with global instability and rising fuel costs further inflating operational expenses. "The uncontrolled rise in commodity prices has pushed essential goods beyond consumers' purchasing power. Its direct and severe impact is now being felt across the restaurant sector," Hasan added. The association also highlighted the energy crisis, noting that a shortage of Liquefied Petroleum Gas (LPG) has disrupted operations. They urged the government to increase LPG imports and restart new pipeline gas connections to stabilise food prices. The association also hit out at regulatory bodies including Rajuk, the Fire Service, and the Department of Environment accusing them of creating ‘bureaucratic complications’ and unnecessary pressure. According to BROA, opening a restaurant currently requires 10 to 12 different approvals, a process that can take up to six months. Hasan argued that these hurdles are forcing many into ‘systematic’ non-compliance. Other key demands include reopening trade license services under the two Dhaka city corporations, permitting beef imports to lower costs, preventing ‘corporate aggression’ within the sector, and launching government-supported training programs for unskilled workers. The association also revealed that approximately 80 percent of restaurants in the country remain unregistered, often operating without proper hygiene standards or tax contributions.