United News of Bangladesh

The European Investment Bank (EIB), the European Union’s (EU) main lending arm, has approved a €350 million framework loan for the implementation of renewable energy projects in Bangladesh. This loan will be complemented by an additional €45 million grant from the European Union (EU). The projects aim to support Bangladesh's sustainable development through environmental protection, climate change risk reduction and adaptation, said a Finance Ministry handout on Monday. The ministry said Bangladesh is strengthening its development cooperation through high-level bilateral meetings with key international financial partners, held as part of the 58th Annual Meeting of the Asian Development Bank (ADB). On Sunday, (May 4), Bangladesh's Finance Adviser Dr Salehuddin Ahmed held a bilateral meeting with the President of the European Investment Bank (EIB), Nadia Calviño. The meeting focused on expanding EIB's ongoing support and investments in new projects. The EIB has been working with Bangladesh under a framework agreement since 2000. To date, the EIB has invested approximately €635 million in a total of six ongoing projects in the health, water supply, transport, and communication sectors. We back interim govt, reform agenda: EIB VP tells Dr Yunus While the EIB's primary focus is on EU member states, the institution plays a significant role in implementing the EU's development cooperation in over 160 countries and regions worldwide. Its priority areas include climate, environment, infrastructure, SMEs, innovation and skill development. In a significant development, the Ministry of Finance announced that the EIB has approved a €350 million framework loan for the implementation of renewable energy projects in Bangladesh. This loan will be accompanied by an additional €45 million grant from the EU. These projects are geared towards supporting Bangladesh's sustainable development by protecting the environment and mitigating and adapting to climate change risks. During the meetings, the Finance Advisor emphasized the need for increased investment in human resource development and infrastructure to address the challenges of LDC graduation and escaping the middle-income trap. He urged the EU and its institutions to provide more grant-based or concessional loan assistance in strategic sectors. The Finance Advisor also held a bilateral meeting with representatives from the Japan Bank for International Cooperation (JBIC). JBIC has long been a key partner in Bangladesh's development, providing support through project financing, strategic partnerships and investment cooperation. EU and EIB pledged support for Bangladesh's environmental protection priorities: Rizwana Notable financing from JBIC includes the DAP-2 Fertilizer Factory (€715.6 million, fully repaid), the equipment for the Ghorashal Fertilizer Factory (supplied by Mitsubishi), and the Meghna Ghat Power Project (€265 million, co-financed with ADB). Besides, the Bangladesh delegation held bilateral meetings with ADB Vice-President for South, Central and West Asia, Yingming Yang, the OPEC Fund Vice President, and Professor Michael Kremer, Vice President of the Agriculture Innovation Mission for Climate (AIM for Climate). These meetings facilitated discussions on issues of mutual interest.

Businesses and economic experts on Sunday urged the government to adopt business-friendly policies in the upcoming national budget to help stimulate economic growth and attract foreign investment. The call came during a seminar titled ‘Fiscal Issues for National Budget 2025–26 to Foster Economic and Business Growth,’ jointly organised by the Institute of Chartered Accountants of Bangladesh (ICAB), the Foreign Investors’ Chamber of Commerce & Industry (FICCI), and the Japan-Bangladesh Chamber of Commerce & Industry (JBCCI). Chairman of the National Board of Revenue (NBR) Md Abdur Rahman Khan attended the event as the chief guest, held at a city hotel. In their keynote presentations, Dr M Masrur Reaz and Snehasish Barua FCA highlighted key challenges such as persistent inflation and declining foreign investment, underscoring the need for structural reforms in governance and debt management. They also noted positive trends in exports and remittances but stressed that policy consistency and comprehensive fiscal reform are essential. Barua called for expanding the tax base, modernising the VAT system and fostering an investment-friendly business environment. Industry leaders echoed these priorities during a panel discussion. 19 listed banks fail to declare dividends for delayed approval NBR Chairman Khan noted that the government is actively working to resolve tax issues affecting investment and is committed to presenting a responsible and transparent budget. He announced a significant policy move — transferring the authority to grant tax exemptions to Parliament, aimed at ensuring greater accountability. ICAB President Maria Howlader stressed the importance of predictable tax policies and long-term structural reforms. FICCI President Zaved Akhtar advocated for an integrated tax system and recommended separating tax policy formulation from revenue administration. JBCCI President Tareq Rafi Bhuiyan (Jun) welcomed the government’s focus on improving the ease of doing business. The panel discussion featured leading industry figures, including Mohammad Iqbal Chowdhury (CEO, LafargeHolcim Bangladesh Limited), Manabu Sugawara (Country Head, Marubeni Corporation), Yuji Ando (Joint Secretary General, JBCCI), Dr Abdul Mannan Shikder (Former NBR Member) and Md Afzal Hossain (Former Secretary to the Government). The seminar brought together a wide range of participants from both business and government sectors.

Nineteen out of 36 banks listed on the stock market have failed to announce dividends for the 2024 financial year within the stipulated deadline due to delays in obtaining approval from Bangladesh Bank. According to central bank officials, several of these banks were unable to present an accurate picture of their defaulted loans or meet the required provision thresholds. The central bank has recently tightened its policies regarding the calculation of defaulted loans and has moved to restrict disbursement of disguised or nameless loans. Despite convening board meetings at the end of the 2024 accounting year to approve financial reports and declare dividends, these 19 banks were unable to finalise any decisions. The meetings concluded without resolutions as the banks did not receive the necessary No Objection Certificates (NOC) from the central bank. Saudi’s oil giant Aramco reports decline in annual profit, cuts dividend As a result, the financial reports for the year remain unapproved, and the banks are also unable to publish unaudited reports for the first quarter of 2025. This has left investors in the dark regarding the banks' income, expenditure and dividend status, the officials said. With seven months having passed since the release of third-quarter results, there is now a significant information gap regarding the financial health of these institutions. April 30 marked the deadline for finalising annual reports and declaring dividends. In response, board meetings of all 36 listed banks were held over the past 17 days. But, many meetings ended late at night without resolution due to the absence of regulatory clearance from Bangladesh Bank. So far, 16 banks have declared dividends. ICB Islamic Bank, however, has announced that it will not pay any dividends this year either. Chief Adviser Yunus hopeful SAARC can give dividends to people of the region if revitalised Bank and Bangladesh Bank officials have confirmed that the audited financial reports of these 19 banks were withheld for various reasons, primarily the failure to reflect actual defaulted loans, inadequate provisioning and incomplete disclosures of defaulting borrowers.

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.

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.

A shortage of investment in power grid infrastructure is preventing developing countries in Asia and the Pacific from fully reaping the benefits of the energy transition, including enhanced energy security, the creation of green jobs and expanded access to electricity, according to a new report released by the Asian Development Bank (ADB). The report focuses on the urgent need to develop interconnected and modernised power grids to meet growing energy demand and integrate intermittent renewable energy sources across the region. Despite the challenges, the analysis finds that the region remains at the forefront of the global shift to clean energy. Since 2013, clean energy investment in developing Asia has soared by over 900%, reaching $729.4 billion in 2023—representing roughly 45% of global investment. Growth forecast for Bangladesh may be revised downward due to US tariff: ADB Official While the People’s Republic of China (PRC) led in investment volume, India and seven other countries in the region recorded renewables making up more than 75% of new energy capacity additions in 2022. The report, ‘Energy Transition Readiness Assessment for Developing Asia and the Pacific’, is the ADB’s first to assess countries’ preparedness to transform their energy systems. Developed in collaboration with the World Economic Forum (WEF), it draws on the WEF’s Energy Transition Index. Although China leads in many areas, the report highlights notable progress in countries such as Georgia, Malaysia and Thailand, which have strengthened regulatory frameworks to support clean energy. Since 2010, Bangladesh, India and Indonesia have spearheaded efforts to expand electricity access to over one billion people. Priyantha Wijayatunga, ADB’s Energy Sector Senior Director, stressed the importance of digitalised grid infrastructure for effectively integrating low-carbon electricity into national power systems.  “With Asia and the Pacific projected to generate two-thirds of global energy growth by 2040, addressing this massive power supply gap will require strong policies, innovative technologies, and long-term financing,” he said. Roberto Bocca, Head of the Centre for Energy and Materials at WEF, added, “This comprehensive analysis highlights the opportunities and challenges facing developing Asian economies in achieving their energy transition goals. Reliable, affordable, and sustainable energy systems are critical for national and regional economic growth.” Bangladesh faces economic challenges amid inflation, declining investment: ADB The report highlights that while each country must chart its own clean energy path based on local conditions, enhanced domestic grid connectivity and regional interconnections—particularly in Central West Asia, Southeast Asia, and South Asia—can improve economic efficiency and lower power costs. These topics, including cross-border energy trading, will be further explored at ADB’s Asia Clean Energy Forum in June.

President of the Bangladesh Textile Mills Association (BTMA) Showkat Aziz Russell said that around 5 lakh new jobs will be created in the country, if Indian yarn imports reduce to 50 percent. He said this while speaking at a seminar on ‘Sustainable Sourcing Seminar of Cotton’, organized jointly by Cotton USA and BTMA, held at the Basundhara Convention Centre on Tuesday evening. Criticizing businesses, he said those who are giving opinion in the media that local fabric production is adversely affected by the halt on Indian yarn imports through land ports, he said they are not on the side of growth of the domestic economy.  The BTMA president said that Indian clothes are imported by paying duty on the prices of clothes, not the weight or KG rate, which is harmful for domestic industries. He mentioned a report of The Hindu, which mentioned that 45 percent Indian yarn exported to Bangladesh. He urged Bangladeshi businesses to keep patient and make policies to favour the country, not favouring neighbouring countries. He said that the immediate past government made a policy to privilege the neighbors, but they could not do any favour from India, so the precious import policy could not be run in Bangladesh now. He blamed that India was sucking the blood of Bangladesh’s economy, which has to be changed in every sector.

National Board of Revenue (NBR) Chairman Md Abdur Rahman on Tuesday expressed hope about resolving issues with the International Monetary Fund (IMF), paving the way for the release of the third and fourth tranches of the $4.7 billion loan programme. “They (IMF) are pressing us to open the exchange rate, in lieu we are placing various types of formulas, the discussion is on, we are hoping to get a good result,” he said. The NBR chairman made the remarks while addressing a seminar titled Macroeconomic Partnership and Fiscal Measures at the Economic Reporters’ Forum (ERF) auditorium. He said the recent engagements with the IMF were positive and the lending agency provided several recommendations. “We accept many of those, and what is not possible for us to take we resist them,” he said. Abdur Rahman Khan also acknowledged that in some areas Bangladesh could not reach a consensus.“ Negotiation is going on, may be we could reach in to agreement,” he said. The IMF has suspended the disbursement of the third and fourth tranches of its $4.7 billion loan package to Bangladesh, citing the government’s failure to meet key reform conditions. Turning to the upcoming budget, the NBR chairman said both the Chief Adviser and Finance Adviser had instructed the formulation of a practical and realistic budget. Taka strengthens against dollar thanks to remittance, export growth “We will focus on revenue generating initiatives shunning the expenditures,” he said. He added that splitting the NBR into two separate divisions—Revenue Management Division and Revenue Policy Division—would be challenging, although the government has finalised the plan. Abdur Rahman hinted at tough fiscal measures in the upcoming budget aimed at boosting revenue collection. “We will implement all laws properly so that people do not feel that they are harassed,” he said. Stressing the importance of revenue generation, the NBR chairman warned of broader economic consequences if collection targets were not met. Policy Exchange Chairman and CEO Dr Mashrur Reaz presented the keynote paper at the seminar. ERF President Doulot Akter Mala and General Secretary Abul Kashem also spoke at the event.

Bangladesh’s currency, the Taka, has strengthened against the US dollar, bolstered by recent growth in remittances and exports. The exchange rate of the US dollar is falling against the taka due to a reduced pressure on paying import bills. Government plans major redesign of Taka notes, removing Sheikh Mujibur Rahman’s image Bankers believe the price may continue to decline in the coming days. On Thursday, banks were paying between Tk 122.50 and Tk 122.60 to exchange remittance. In contrast, just in the second week of this month, banks were paying between Tk 123 and Tk 123.20 for the same, reflecting a decrease of Tk 0.50 to Tk 0.70 in the dollar’s price within two weeks. Bank officials predict a further decline in the dollar's value in the near future. They argue that there is little likelihood of increased dollar demand in the next few months, as many investors are awaiting the upcoming elections before making new investment decisions. So, imports related to investment are unlikely to increase, they said. Meanwhile, the Bangladesh Bank has said the dollar supply in the market is normal. BB-Dollar: Taka loses 12.72% value in 2024 as dollar strengthens Central bank spokesperson Arif Hossain Khan said the dollar’s price will not be fully floated on the market immediately due to pressure from international donor agencies.