United News of Bangladesh

As the world continues to face a volatile mix of geopolitical tensions, climate risks, and economic disruptions, a leading Chamber on Saturday underscored the urgent need for Bangladesh to adapt strategically in order to navigate the complex challenges of 2025. The global backdrop remains unstable, marked by the Red Sea crisis, ongoing wars in Ukraine and the Middle East, and a resurgence of economic nationalism, especially following the return of Donald Trump to the U.S. presidency. The 30th annual Council of the International Chamber of Commerce – Bangladesh (ICCB) was held in Dhaka. ICCB President Mahbubur Rahman, on behalf of the Executive Board, presented a comprehensive report on the evolving global and national economic landscape and its implications for Bangladesh. Rahman reiterated ICC Bangladesh’s commitment to supporting reform, resilience, and regional integration as key pillars for sustainable economic recovery. The Council noted that the global economy is expected to grow by just 2.8% in 2025, with the U.S.–China trade war further aggravating uncertainties, according to a media release issued by the ICCB. Inflationary pressures and protectionist policies risk fragmenting global supply chains—an alarming trend for developing economies such as Bangladesh. In this context, Bangladesh’s economy faces significant headwinds. The World Bank projects GDP growth to slow to 3.3% in FY2024–25, while the IMF and ADB forecast growth at 3.8% and 3.9%, respectively. High inflation—exceeding 10% overall and 14% for food—combined with declining investment and political uncertainty, has deepened the economic slowdown. A major concern is the fragile state of Bangladesh’s financial sector. Non-performing loans (NPLs) hit a record Tk 3.45 trillion by December 2024, with state-owned banks the worst affected. Nineteen banks have reported a capital shortfall of Tk 1.71 trillion, prompting the interim government to initiate banking reforms, including board dissolutions, bank mergers, and stronger oversight. The ICCB also addressed the implications of Bangladesh’s planned graduation from Least Developed Country (LDC) status by November 2026. With the likely loss of preferential trade terms—especially in the RMG sector—the country risks facing tariffs of up to 11.5% in major markets such as the EU and the UK. The Council emphasized the importance of a transition strategy to safeguard export competitiveness and maintain foreign investment flows. In addition to banking and trade concerns, the Council highlighted several key challenges: Rising costs from increased reliance on imported fossil fuels and currency depreciation require urgent domestic exploration and investment in renewable. With a tax-to-GDP ratio below 10%, revenue mobilization remains weak. The restructuring of the National Board of Revenue is expected to improve efficiency and fiscal space. Ranked among the most climate-vulnerable nations, Bangladesh faces serious risks from floods, droughts, and salinity intrusion. Climate change may cut annual GDP growth by 2% if not addressed. FDI remains far below regional peers, at $3 billion in 2023 compared to Vietnam’s $39 billion. Export reliance on garments must be reduced by promoting sectors like pharmaceuticals, agro-processing, and IT. As the digital economy expands, the threat of cyberattacks grows. The ICCB urged swift action to strengthen national cybersecurity infrastructure and regulation; U.S. Tariffs: A proposed 37% tariff on Bangladeshi exports to the U.S. could severely affect RMG exports and job creation. The ICCB suggested forming a task force under the Ministry of Commerce to negotiate fairer trade terms and ensure continuity of access. The Council emphasized the potential of the Bangladesh-Bhutan-India-Nepal (BBIN) corridor to enhance regional connectivity and trade. With improved infrastructure and stronger cooperation, BBIN’s combined GDP could reach $8.3 trillion by 2035, positioning Bangladesh as a strategic transit hub. The Council approved the Auditor’s Report of 2024 and appointed the Auditor for the year 2025. The High Commissioner of Brunei Darussalam, Haji Haris Bin Haji Othman; the Ambassador of the Republic of the Union of Myanmar, U Kyaw Soe Moe; the Chargé d’Affaires of Argentina, Maximiliano Romanello and Senior Economic Officer Asian Development Bank Barun Kumar Dey attended the Council meeting as special guests. The Council meeting was attended, among others, by the ICCB Vice President Naser Ezaz Bijoy; ICCB Executive Board Members : Kutubuddin Ahmed, Anwar-ul-Alam Chowdhury (Parvez), Aftab Ul Islam, FCA; Mir Nasir Hossain, Kamran T. Rahman, Sayeed Ahmed, Mahmud Hasan Khan, Mohammed Hatem and Showkat Aziz Russell; ICCB Members : Azim Group Chairman Mohammad Fazlul Azim, FICCI President Zaved Akhtar; DCCI Sr. Vice President Razeev H Chowdhury; Arlinks Limited Chairman & MD Imran Faiz Rahman, DBL Ceramics Limited Managing Director Mohammad Abdul Jabbar, ETBL Securities & Exchange Ltd. Managing Director & CEO Rizwan Rahman; Ha-meem Group Director Sajid Azad; Meghna Group of Industries Chairman & Managing Director Mostafa Kamal, New Zealand Dairy Products Bangladesh Limited Managing Director Mohammad Samsul Alam Mallick, Summit Alliance Port Limited Managing Director Syed Ali Jowher Rizvi; Islam Aftab Kamrul & Co Managing Partner AKM Kamrul Islam; United Insurance MD Khawja Manzer Nadeem; green Textile MD Tanvir Ahmed; Swisscontact Country Director Md. Helal Hussain, Tyser Risk Management Bangladesh Ltd. Managing Director S. M. Moinul Islam, Karnaphuly Ins. Co. CEO ANM Fazlul Karim Munshi; DSE COO & MD Mohammad Asadur Rahman ICC Bangladesh Banking Commission Chairman Muhammad A. (Rumee) Ali & ICCB Secretary General Ataur Rahman.

Finance Advisor Dr. Salehuddin Ahmed stated that Bangladesh's banking sector requires an estimated US$35 billion for its reconstruction. He noted that the International Monetary Fund (IMF) had initially estimated $18 billion, but the current assessment suggests double that amount is now needed. Dr. Ahmed made these remarks on Saturday (July 26) at the CIRDAP auditorium in Dhaka, during the launching ceremony of the book 'Economy, Governance, and Power: An Account of Lived Life,' authored by Dr. Hossain Zillur Rahman, who also chaired the event. Bangladesh’s private sector credit growth dips below 7% amid economic uncertainty  Dr. Salehuddin highlighted the severity of the economic crisis, stating that when the new government took office last August, such an economic disaster was unprecedented globally. He revealed that 80 percent of the funds in the banking sector have been embezzled. As an example, he explained that if a bank has Tk20,000 crore in outstanding loans, Tk16,000 crore of that amount has been siphoned off. He lamented the near absence of sound financial institutions, asserting that not only have laws been violated, but the entire process has been destroyed. Furthermore, those responsible for these illicit activities remain unpunished and, in their positions, with no changes having occurred. Financial sector 'will never recover' under prevailing judicial system: Ahsan Mansur "Many suggest dismissing everyone, but that is not feasible," he added. "Now, we have to work by coaxing and admonishing them." Dr. Salehuddin emphasized the difficulty of establishing good governance, pointing out that even the Prime Minister lacks effective checks and balances, and Members of Parliament have little accountability. He stressed that without addressing these fundamental issues, any reforms undertaken would yield minimal results. He concluded by stating clearly, "Reforms are needed not only in government institutions but also within political parties." Tourism has immense potential, but challenges persist: TOAB President

Private sector credit growth in Bangladesh has plummeted below 7 percent in June, reflecting a sharp slowdown in lending amid high interest rates and uncertainties following the change in government. According to the latest data from the Bangladesh Bank, private sector credit growth recorded a mere 6.40 percent in June, a level not seen in recent years. This marks the second time this year that credit growth has fallen below 7 percent, consistently hovering around that figure without exceeding it in any month. Talking to UNB, Dr Mustafa K Mujeri, Executive Director at the Institute for Inclusive Finance and Development (InM), attributed the decline to several factors. He said political uncertainty, a conflict-ridden environment, and disruptions to law and order are deterring entrepreneurs from taking on new investment risks. The banking sector itself also plays a role in this slowdown. Financial sector 'will never recover' under prevailing judicial system: Ahsan Mansur Extensive financial irregularities in previous years have left many banks grappling with liquidity shortages, thereby reducing their lending capacity, he said. Besides, banks are now much more cautious in extending credit due to the immense pressure from soaring non-performing loans (NPLs), said Mujeri, a former Chief Economist of the Bangladesh Bank. Dr Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD), said that continuous decline in private sector credit growth signals a significant impending crisis for the economy. This sustained decline points to a growing crisis in both the banking sector and the broader business environment. Reduced credit growth directly translates to fewer new industries being established, less business expansion, and consequently, fewer employment opportunities being created. The economists believe that the situation is unlikely to improve significantly before the upcoming national elections. If, for any reason, the national elections are delayed, the situation could further deteriorate.  A lack of an acceptable resolution regarding the mutual imposition of tariffs by the United States on Bangladeshi products could also have a negative impact on the economic outlook, they said. Weak market monitoring, extortion in transport sector, propping up price of commodities: Speakers Bangladesh Bank's monthly data reveals a consistent downward trend in private sector credit growth: · May: 7.17% · April:7.5% · March: 7.57% · February: 6.82% · January: 7.15% · December 2024:7.28%

Bangladesh Bank Governor Dr. Ahsan H. Mansur has expressed grave concerns about the financial sector's recovery under its present judicial system, as he disclosed plans to revise the ‘Artha Rin Adalat Ain’ (Money Loan Courts Act) soon. The governor made these remarks in a recent interview with a local news outlet, criticizing the present judicial system's impact on financial stability. "If the judiciary continues on its current path, the financial sector will never be able to rebound," Dr Mansur asserted. "Bangladesh Bank, the government, and the judiciary must work in harmony. To reach international standards, we must operate with similar capacity and accountability," he added. Tough Stance on Loan Defaulters: Addressing the persistent issue of non-performing loans (NPLs), Dr. Mansur emphasized a zero-tolerance approach. "A defaulter should be called a defaulter," he stated unequivocally. He added that even if a borrower obtains a stay order from the High Court, Bangladesh Bank should still classify them as a defaulter. "Because the way a bank knows a customer, it is not possible for the court to understand that." Bangladesh Bank aims to cut inflation to 5%: Governor Mansur cited a recent incident involving Agrani Bank, where a borrower was declared a defaulter despite having a stay order, leading to the issuance of a warrant against them. According to the Governor, such decisions are "policy-wise correct." Organized Looting in banking sector Responding to questions about the progress made in restructuring the banking sector over the past year, Dr. Mansur highlighted the deep-rooted nature of the problem. "We have seen that this is not a one-day affair. Banks and financial institutions have been systematically seized for about eight to nine years," he said, adding that funds were then "methodically laundered" from them. He likened the situation to a "honeypot" – a sweet repository from which honey was looted. "No one thought about protecting the safety of public deposits. Instead, it was used as a sector for looting," he lamented. The Governor further alleged that this "process of looting" occurred "right before the eyes of the government" and "under the notice of Bangladesh Bank." Yet, he claimed, "no one said anything." In many cases, he added, "the concerned authorities even assisted those groups." Mansur recalled that civil society had raised concerns, and he himself had warned about the impending crisis: "I directly told a former Governor, 'Be careful about Mr. X.' Because if he hijacks the banks, the entire sector will collapse." Merger of 5 Islamic banks at final stage: Bangladesh Bank Governor He concluded with a dire analogy: "I then said, if several banks fall at once, we will even need ambulances. Unfortunately, that's exactly what happened – the entire banking sector was handed over to one family and opened up for looting."

The price of gold has been increased by Tk 1,050 per bhori (11.664 grams) in Bangladesh, for 22-carat gold. From now, gold of 22-carat will cost Tk 171,601 per bhori, 21-carat Tk 163,798, 18-carat Tk 140,400, and gold of traditional method Tk 116,127 respectively. The Bangladesh Jeweller’s Association's (BAJUS) standing committee on pricing and price monitoring took the decision in a meeting, a press release said today According to the press release, the new prices will come into effect from Wednesday. Gold price drops by Tk 1,575 per bhori in Bangladesh The association said that the price of acid gold (pure gold) has increased in the local market. Considering the overall situation, BAJUS has fixed the new price of gold accordingly. In addition to the selling price of gold, a 5% government-imposed VAT and a 6% BAJUS-fixed minimum making charge must be added. However, the making charge may vary depending on the design and quality of the jewellery. Earlier, on July 7, BAJUS last adjusted the gold price, raising it by Tk 1,575 per bhori and setting the 22-carat gold price at Tk 170,551.

Despite Bangladesh’s immense potential as a tourism destination, the sector continues to face significant challenges, including inadequate infrastructure, a shortage of skilled human resources, weak policy implementation, and concerns over safety and cleanliness, said Mohammed Rafiuzzaman, president of the Tour Operators Association of Bangladesh (TOAB) on Saturday. He made the remarks while announcing the schedule for the 13th edition of the Bangladesh Travel and Tourism Fair (BTTF) 2025 during a meeting with the executive committee of the Aviation and Tourism Journalists’ Forum of Bangladesh (ATJFB) at the TOAB office in the capital. The fair will be held from 30 October to 1 November at the Bangladesh-China Friendship Conference Centre (BCFCC) in Dhaka. Weak market monitoring, extortion in transport sector, propping up price of commodities: Speakers To address the existing challenges in the tourism sector, Rafiuzzaman stressed the importance of integrated public-private initiatives, internationally standardised training, and targeted destination development. He highlighted TOAB’s continued efforts to boost tourism since the launch of BTTF in 2007. "The fair has significantly contributed to the growth of the domestic tourism industry and sparked interest from neighbouring and South Asian countries. Participation from foreign delegates has increased steadily over the years," he said. ATJFB President Tanjim Anwar said BTTF is an important platform for fostering collaboration between local and international tourism stakeholders. “It facilitates investment, policy support, and destination expansion. The growing international presence in this year’s fair is a positive indicator for the sector’s future,” he added. Govt should  fund projects via stock market to build trust: Khosru This year’s fair will feature 220 stalls, with participants expected from the United Kingdom, European Union countries, Thailand, Malaysia, Singapore, Myanmar, Sri Lanka, India, Nepal, Bhutan, Pakistan, the Philippines, and China. The event will include B2B meetings, roundtable discussions, seminars, destination presentations, press briefings, and cultural programmes. All of these will be open to participants. Invitations are also being extended to National Tourism Organisations (NTOs), foreign tour operators, and other international tourism professionals. ATJFB Vice President Rajiv Ghosh, Joint Secretary Md Shafiullah Sumon, Organising Secretaries Julhas Kabir and Adnan Rahman, Publicity and Publication Secretary Altab Hossain, and Executive Members Masud Rumi, Rashidul Hasan, and Golam Mortuza Antu, TOAB Director (Training and Research) Mohammad Moniruzzaman, Director (Property and Assets) Ziaur Rahman Zakir, and former TOAB President Shiblul Azam Qureshi, were also present.

Speakers at a stakeholder dialogue said that unrestrained extortion in the transportation sector and a lack of effective market surveillance are the main reasons behind rising prices of essential commodities in local markets. They said this while speaking at a dialogue titled "Protecting Consumer and Business Interests Through Effective Market Monitoring," organized by the Dhaka Chamber of Commerce & Industry (DCCI) on Saturday. Speakers highlighted several key factors of influence in prices, including artificial shortages, substandard products, insecure transportation, complex import procedures, insufficient storage facilities, and a lack of competition in product management. They further noted that the absence of effective market surveillance, the prevalence of middlemen, extortion, insecurity, and a lack of coordination among regulatory bodies are the primary causes of market instability. Vegetable prices soar in Khulna’s post-Eid markets Rajib H. Chowdhury, Acting President of DCCI, said that the soaring prices of daily necessities pose a significant challenge for both consumers and honest businesses. He identified artificial scarcity, low-quality goods, complex import processes, a lack of competition, and administrative inefficiencies as factors contributing to disarray in the market system. Rajib called for the establishment of a coordinated, accountable, and effective market monitoring framework. Mohammad Alim Akter Khan, Director General of the National Consumer Rights Protection Directorate, revealed that due to a severe shortage of personnel, their operations are limited to only 19 of the 64 districts, which is insufficient for effective market oversight. He underscored the importance of legal coordination, policy transparency, and increased public engagement. Md. Shahjahan Mia, Administrator of Dhaka South City Corporation, attributed the high prices of essential goods, particularly, to the influence of middlemen in product transportation and market management. Adviser Farida emphasises national policy for fair milk prices He lamented that the reputation of the vast private sector is being tarnished by a small number of dishonest traders, urging honest businesspeople at all levels to step forward and curb these illicit activities. Professor Dr. Mohammad Shoaib, Member (Food Industry & Production) of the Bangladesh Food Safety Authority, stated that while regular operations are conducted to ensure food quality, a more robust market monitoring system, leveraging technology and improved coordination, is crucial. Dr. Md. Akhtaruzzaman Talukder, Member of the Bangladesh Competition Commission, asserted that a lack of fair competition in the market leads to increased prices and irregularities. He suggested that research and data-driven planning would be instrumental in addressing these issues. Industry Voices The dialogue also featured insights from Mohammad Golam Mawla, General Secretary of Moulvibazar Traders Association; Khandaker Monir Ahmed of the Poultry Industries Association, Abul Hashem of the Sugar and Oil Traders Association, and Md. Zakir Hossain of the Supermarket Owners Association and Mirza Golam Sarwar from the Patents and Trademarks Department. Fuel prices to remain unchanged in July They collectively pointed to a shortage of storage facilities, import complexities, excessive profit-taking at the retail level, the closure of government sugar mills, and the absence of fair pricing mechanisms as factors contributing to market instability.

Bangladeshi apparel entrepreneurs and a USA-based corporation, AmeriBangla, in a strategic discussion on Thursday highlighted the significant potential of utilizing US cotton as raw material in clothing production for American buyers. The potential move is seen as a robust opportunity to counter ongoing tariff challenges. The discussion, held on Thursday at a Gulshan hotel, emphasized that direct cotton purchases from US farmers could offer highly affordable prices and popularize "Made in Bangladesh" products among US consumers. The event drew prominent leaders from Bangladesh's Ready-Made Garment (RMG) sector, senior association representatives, and logistics company executives. Aswar Rahman, CEO of AmeriBangla Corporation, presented an overview of US cotton production, underscoring the eagerness of US farmers to sell cotton directly to Bangladeshi buyers. He also proposed the establishment of cotton warehouses in Dhaka or Chattogram to facilitate this trade. Aswar pointed out that while tariff issues present challenges, they also create an opportunity for Bangladesh. He stressed that increasing the import and use of US materials, including cotton, is a crucial early step to popularize "Made in Bangladesh" in the USA and grow business with America. Textile industry seeks immediate withdrawal of 2% AIT; threatens cotton import halt This timely private event comes amidst growing concern within Bangladesh’s RMG sector as government-to-government trade negotiations have yet to secure terms that adequately protect the country's vital export industry. In response, AmeriBangla has launched an initiative to foster direct commercial partnerships between Bangladeshi garment exporters and American cotton farmers and processors. "As a facilitator of cross-border partnerships, AmeriBangla Corporation is committed to building a strong and competitive US-Bangladesh trade relationship by building transparent, long-lasting and high-impact partnerships," stated Aswar Rahman. BTMA seeks duty-free access to US market for its cotton-based productsRepresentatives from various prominent groups, including Hamim Group, Jamuna Group, True Group, Saad Group, Divine Group, RPM Group, Marubini Group, and BKME, as well as Brigadier General (Rtd.) Ali Ahmed Khan, were among those who spoke at the event.

Obayed Ullah-Al Masud on Thursday stepped down as chairman of Islami Bank, the country’s largest private sector bank, amid probe into his alleged corruption, authorities said. His resignation came after reports about his involvement in corruption and his connection to controversial businessman S Alam. He submitted the resignation letter to the bank’s Board of Directors, which was formed by Bangladesh Bank following the country's political change last year. Professor Zubaidur Rahman, the independent director of the Board of Directors of Islami Bank Bangladesh, is likely to be appointed as the new Chairman. The process of his appointment is underway, according to sources at the central bank. After the Bangladesh Financial Intelligence Unit (BFIU), central bank's financial intelligence agency, sought bank account details of Masud, and five members of his family on July 14, he failed to meet the central bank governor. After that, Masud was preparing to resign. The BFIU letter instructs banks to provide details of all accounts (including account opening forms and updated statements), savings certificates, bonds, lockers, credit cards, student files, pre-paid cards, gift cards, and vouchers for transactions of Tk 5 lakh or more related to Masud and his family members, or any entity in which they have an interest, by July 15. BKTCC and IBBL arrange discussion on sending remittances through legal channels This development comes amid serious allegations of financial irregularities and money laundering linked to a 1320MW coal-fired SS Power Plant project in Banshkhali, Chittagong. Approximately US$815.78 million was allegedly siphoned out of Bangladesh by just two Letters of Credit (LCs) for this project, implemented as a joint venture between S. Alam Group's subsidiary SS Power Limited and Chinese partner SEPCO. This vast sum was reportedly sent abroad for 'capital machinery imports,' even though not a single piece of machinery arrived in the country, according to a Bangladesh Bank investigation. Sources indicate that 184 invoices were submitted against these two LCs, opened through Rupali Bank, but most were fraudulent or issued with future dates. Some invoices even used the names and export documents of other companies. Crucially, there is no import data for SS Power on the servers of the National Board of Revenue (NBR) or Bangladesh Bank, despite foreign currency being released, said the sources of the central bank. At the time of these alleged irregularities, Masud was the Managing Director of Rupali Bank.

Former Commerce Minister and standing committee member of BNP Amir Khosru Mahmud Chowdhury on Monday said the capital market will only truly gain the trust of stakeholders when government projects begin sourcing funds directly from the stock market. Speaking at a workshop titled ‘Capital Market Reconstruction and Reality’, organised by the Economic Reporters' Forum (ERF) at its auditorium in Paltan, he said the growth of the capital market goes beyond the mere introduction of a few good companies for Initial Public Offerings (IPOs). Khosru warned that over-regulation by the relevant bodies, without strong self-regulation mechanisms, is hampering the institutional capacity of the market.  He emphasised the need for the ‘democratisation’ of Bangladesh’s economy to ensure proper growth. The BNP leader said both domestic and foreign investors are eagerly awaiting opportunities to invest in Bangladesh’s growing economy. In response to a question, the BNP leader said no major reforms would take place unless the country's political culture is fundamentally changed.  He also reaffirmed BNP’s commitment to capital market investment, saying, “If we are voted to power, I give you a commitment to make the economy and the capital market stronger.” Mominul Islam, Chairman of the Dhaka Stock Exchange (DSE); AKM Habibur Rahman, Chairman of the Chittagong Stock Exchange (CSE); and the President of the DSE Brokers Association of Bangladesh (DBA) also spoke at the event.