United News of Bangladesh

The government is working to create a more pro-business environment for investors, Executive Chairman of the Bangladesh Investment Development Authority (BIDA) Ashik Chowdhury said on Monday. “We have a once-in-a-lifetime opportunity to potentially transform many aspects of our business ecosystem,” he said while speaking at a session titled ‘Bangladesh Startup Connect’, part of the four-day investment summit being held at the Intercontinental Hotel in the capital. Ashik emphasized the continued importance of BIDA’s role as an investment promotion agency. “It is up to the government to figure out how to build a bridge between the assets we have within the country and the global liquidity that is available,” he added. Shift towards renewable energy both urgent necessity and strategic investment opportunity: BIDA Citing an example, he pointed to the challenge of obtaining a trade license -a seemingly simple issue that poses significant barriers for startups in Bangladesh. “We need to ensure that we are building an ecosystem where it is much easier for businesses to operate,” the BIDA chief said.

Bangladesh exported goods worth  $4.25 billion, marking a year-on-year growth of 11.44 percent compared to $3.81 billion in March, 2024. According to the Export Promotion Bureau (EPB) during the first nine months of the Fiscal Year 2024-25 (July–March), Bangladesh’s export sector demonstrated a commendable performance, achieving a total export earnings of US$ 37.19 billion. The export growth reflects a 10.63 percent growth compared to $33.61 billion recorded during the same period of the previous fiscal year. The Ready-Made Garments (RMG) sector, traditionally the cornerstone of Bangladesh’s export basket, retained its leading position. RMG exports during July–March FY 2024-25 reached $ 30.25 billion, reflecting a 10.84 percent growth over the corresponding period last year. For the month of March alone, RMG exports witnessed a 12.40 percent year-on-year growth, rising to $3.45 billion from $3.07 billion. Beyond RMG, several other sectors also contributed significantly to the overall export growth. Bangladesh saw export growth by 15.63% in Nov The table below presents a comparative performance matrix of key sectors: Value in USD Million SectorExport Earnings (Jul–Mar FY 2023-24)Export Earnings (Jul–Mar FY 2024-25)Growth (%) Jul–MarYoY Growth in March (%)Total ExportsUSD 33,617.41USD 37,191.3210.63%11.44RMG (Total)27,288.7330,246.3410.84%12.40Knitwear14517.4616146.7211.2212.93Woven12,771.2714099.6210.4011.82Leather & Leather Goods775.36852.019.8922.64Jute & Jute Goods678.37626.29-7.680.28Light Engineering Products362.96402.4510.8833.32Home Textiles645.68677.604.943.30Specialized Textiles249.04298.3919.645.84Other Footwear (Excl. Ch. 64)309.12414.6834.1544.03Agricultural Products760.40807.066.14-25.72The RMG sector continues to anchor the export landscape, showing strong and consistent growth both cumulatively and on a monthly basis. EPB said in its observation . Leather and leather goods, as well as light engineering products, registered notable growth, signaling the diversification potential of Bangladesh's export base. Bangladesh expects to see export growth despite global trade shifts Home textiles, specialized textiles, and non-Chapter 64 footwear sectors showed moderate but positive growth. The jute sector remained largely stagnant, with minimal growth. Agricultural products, an emerging export segment, suffered a significant negative growth of 25.72%, necessitating targeted interventions to reverse the trend.

Stock Market Closing Stock Market sees fall in Dhaka, rise in Chittagong on first day after Eid Dhaka, April 6 (UNB) - The stock market reopened on Sunday after the extended Eid holidays with a mixed performance. The Dhaka market saw a decline, while Chittagong experienced a modest rise. From the beginning of the trading day on Sunday, the indices at the Dhaka Stock Exchange (DSE) began to fall. By the end of the session, the DSEX, the main index, dropped by 13 points. Among the other two indices, the Shariah-based DSES saw a decline, while the blue-chip DS-30 index rose by 14 points during the day’s trading. A total of 393 companies participated in the trading on the first day, with most stocks experiencing a decline in value. Out of these, the shares of 101 companies increased, while 262 companies saw a drop, and 30 companies' share prices remained unchanged. In terms of categories, most companies in categories A, B, and Z failed to benefit from the trading session. However, mutual funds performed well. Of the 36 mutual funds traded, 33 saw an increase in share prices, 2 experienced a decrease, and the share price of 1 remained unchanged. In the block market of Dhaka, shares worth 106.6 million taka of 18 companies were sold, with Bich Hatchery Limited leading with 44.8 million taka worth of shares sold. The total trading volume for the day at the DSE was 41.5 billion taka, up from 31.5 billion taka on 27 March, the last working day before the Eid holiday. Brokerage houses attributed the increase in trading volume to investors’ inclination to sell off shares as the index declined. Stock indices decline in Dhaka, Chittagong markets; trading volume rises Despite the rise in trading volume, they noted that this development did not signal a positive outlook for the market. Among the top-performing stocks of the day, Beximco Pharmaceuticals Limited saw a rise of 9.79%, with its share price increasing from 98 taka at the beginning of the day to 108.80 taka by the close of trading. On the other hand, Bich Hatchery Limited saw the steepest decline of the day, losing 9.27% in value. The company’s share price fell from 107 taka to 99.80 taka by the end of the trading session. Modest Rise in Chittagong The Chittagong Stock Exchange (CSE) experienced a slight upward movement. The overall index of the CSE increased by 3 points during the day’s trading. Despite the index increase, most stocks on the CSE saw a decline in value. Of the 179 companies that participated in the trading, the share price of 70 companies rose, while 84 companies saw a decrease, and 25 companies’ prices remained unchanged. The total trading volume on the CSE for the day was 10.62 million taka, which was higher than the 7.13 million taka recorded on 27 March. Beximco Pharmaceuticals Limited topped the performance charts in Chittagong as well, with a 10% increase in share price. On the other hand, Popular Life Insurance Company Limited experienced the steepest fall, with its shares losing 10% of their value. END/UNB/MM/SAM

The export-import activities through Hili land port in Dinajpur resumed on Sunday morning after eight days of holiday on the occasion of Eid-ul-Fitr. Professor Shahinur Islam, general secretary of C&F Agent association of the land port, said trade activities remained suspended from March 29 to April 5. He said movement of travellers with valid documents through the port remained as usual during the period.   Trade with India through Hili land port to remain suspended for 8 days Shafiul Alam, revenue officer of the land port, said the goods-laden trucks from India started entering the port from 11am on Sunday.

After a nine-day break for Eid-ul-Fitr, the country’s stock markets have resumed regular trading, with mixed performance observed in the early hours of Sunday. On the Dhaka Stock Exchange (DSE), the key index DSEX dropped by 28 points during the first two hours of trading. Among the other indices, the Shariah-based DSES index fell by 3 points, while the blue-chip DS30 index edged up by 5 points. Most listed companies on the DSE witnessed a decline in share prices. DSE, 2 other South Asian stock markets unite to drive regional growth Out of the 390 companies traded, prices fell for 267, rose for 97, and remained unchanged for 26. The total turnover on the DSE crossed Tk 200 crore in the first two hours of the trading session. Chattogram Bourse Sees Upward Movement While Dhaka’s market saw a fall in its key index, the Chittagong Stock Exchange (CSE) recorded a rise in its overall index. During the initial two hours of trading, the CSE’s composite index increased by 45 points. However, similar to the DSE, the majority of participating companies saw a drop in their share prices. Of the 110 companies that traded on the CSE, 43 experienced price gains, 53 declined, and 14 remained unchanged. DSE, stakeholders vow to work with BSEC to restore investors’ confidence The total turnover at the CSE stood at over Tk 1.4 crore during the same period. Both bourses are expected to return to full swing as the post-Eid trading atmosphere settles in over the coming days.

The export-import activities through Sonamasjid land port in Chapainawbganj resumed on Sunday after eight days of holiday on the occasion of Eid-ul-Fitr. Ruhul Amin, member secretary of C&F Agent association of the land port, said trade activities remained suspended from March 29 to April 5. Trade with India through Hili land port to remain suspended for 8 days However, the goods-laden trucks from India started entering the port from Sunday following the resumption of the port activities.

In an executive order, US President Donald Trump has imposed a 37% tariff on Bangladeshi products and others, sparking concerns among economists and apparel industry stakeholders. They fear this move will exert significant pressure on Bangladesh’s economy, urging the country to diversify its economic landscape and initiate dialogue with the US administration under the Trade and Investment Cooperation Framework Agreement (TICFA). Experts believe that a mutual understanding between the two nations could lead to a revision of the imposed tariff. Failure to act promptly may result in the migration of apparel orders to countries such as India, Turkey, Egypt and Honduras. Need for Export Diversification Former Dhaka University professor Dr MM Akash emphasised the necessity of diversifying Bangladesh’s export base to mitigate the impact of the tariff. “We need to tackle this by expanding our trade to multiple countries with a variety of products,” he said. Highlighting the country’s lack of preparation in this regard, Dr Akash argued for a strategic trade approach. “Previously, we discussed free trade and protectionist trade. Now, both strategies are becoming ineffective. We must adopt strategic trade policies,” he added. Efforts underway to address tariff issue with US: Press Secretary  According to him, Bangladesh must be selective—pursuing protectionist policies in some areas, engaging in free trade in others, and strengthening ties with China and India where necessary. “At times, we may capture Vietnam’s market, and at times, Vietnam may capture ours. We might even impose tariffs on American products. A multi-pronged strategy is essential,” he said. But, Bangladesh Institute of International and Strategic Studies (BIISS) Research Director and economist Dr Mahfuz Kabir presented a different view, saying that Bangladesh cannot swiftly redirect its export markets. “Eighty-five percent of our exports come from the apparel sector, which must remain intact. In the long term, we may consider diversification, but immediate alternatives are limited,” he said. Winners and Losers in the Trade War Referring to the tariff hike as a trade war, Dr Akash said, “This is a tariff war, and it is uncertain whether we will be the only losers—Trump himself could lose as well.” He explained that Trump’s policy aims to protect local industries and employment, but it also poses risks. “Affordable goods, particularly from China, will become expensive for American consumers, increasing their cost of living. Although their wages might rise, real income could decline,” he noted. Akash said the new tariff regime will affect not only China but also Bangladesh, Vietnam, and other developing countries. As a result, Bangladeshi export prices in the US will rise, potentially reducing demand and decreasing foreign currency earnings. How Much Will Bangladesh Suffer? Dr Akash believes the 37% tariff on Bangladeshi products will have a severe impact. “Seventy-six percent of our export revenue comes from the garment sector. If prices rise by 37%, significant repercussions are inevitable.” The extent of the damage depends on the distribution of Bangladeshi exports across different regions. Global reactions to US ‘Reciprocal’ tariffs remain cautious “A substantial portion of our apparel exports go to the US, so this will be a major blow,” he said. Dr Mahfuz Kabir added that the US currently accounts for 19% of Bangladesh’s total exports. “With one-fifth of our exports going there, a 37% tariff will have a considerable impact,” he said. India and Pakistan to Benefit Dr Kabir argued that the primary beneficiaries of this tariff hike will be India and Pakistan. “Many of Bangladesh’s orders will shift to these countries, which is deeply concerning.” The US has imposed tariffs of 26% on Indian and 29% on Pakistani products. As India’s export range closely resembles Bangladesh’s, it may gain a competitive advantage. Dr Kabir warned that American buyers might prioritise India and Pakistan over Bangladesh due to rising costs, while also exploring closer alternatives such as Honduras. “Even though Vietnam faces a 44% tariff—higher than Bangladesh—its trade agreement with the US might offer it some leverage,” he noted. “Sri Lanka faces a similar situation, but neither country is in a position to overtake Bangladesh in competition.” Nonetheless, new competitors such as Honduras, Egypt and Turkey are emerging, posing fresh challenges for Bangladesh’s apparel exports. Engaging with Trump Administration To mitigate the impact of the tariffs, Bangladesh must engage in discussions with the Trump administration, according to Dr Kabir. “We must leverage the TICFA agreement. While the tariff decision was made via executive order, complicating negotiations, a strategic approach is necessary.” TICFA mandates bilateral discussions in case of trade disputes. But, since this decision was taken at the presidential level, bypassing the US Trade Department, direct negotiations may prove challenging. “If Bangladesh’s National Board of Revenue (NBR) reviews tariffs on US imports, the Commerce Ministry can inform the US Trade Department. Meanwhile, the Foreign Ministry should attempt to engage directly with the White House,” he suggested. Dr Kabir believes that sending a strong message to the US about reviewing tariffs on American products could encourage the Trump administration to reconsider its stance. “If we assess our tariff structure on US imports, Trump might reciprocate. Since Bangladesh does not import substantial daily necessities from the US, reducing tariffs will require broader trade adjustments.” Concerns of Industries Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), expressed grave concerns over the potential repercussions for the apparel sector. Trump’s promised ‘reciprocal’ tariffs unleashed on dozens of countries; Bangladesh slapped with 37% “We initially thought that if Bangladesh remained exempt from US tariffs, we could capitalise on export opportunities. However, the 37% tariff has nullified that advantage,” he said. Asked why Bangladesh will be hit with a higher tariff than China, India and Pakistan, Hatem explained that the decision stems from retaliatory tariff policies. “US exports to Bangladesh face a 74% tariff. Bangladesh, therefore, faced a 50% retaliatory tariff hike, putting us in a precarious position,” he said. Hatem urged the government to initiate bilateral talks with the US as soon as possible. “Given Bangladesh’s heavy reliance on US-imported yarn for garment production, both nations have vested interests. If we reach an agreement, the US administration may reconsider the imposed tariff,” he said. The 37% tariff on Bangladeshi products presents a formidable challenge, particularly for the country’s apparel sector. While diversification and strategic trade policies could provide long-term solutions, immediate negotiations with the Trump administration appear to be the best course of action. The coming months will determine whether Bangladesh can successfully navigate this economic hurdle.

The Bangladesh Jewellers Association (BAJUS) on Friday called for heightened security measures during the extended Eid holidays to protect jewellery businesses from increasing thefts and robberies. At a press conference held at its New Eskaton Road office, BAJUS Vice President Riponul Hasan said there are a total of 40,000 jewellery establishments in the country. But, the recent surge in thefts and robberies targeting these businesses has created a serious sense of insecurity among jewellers. Ripon revealed that between January and 26 March, a total of 23 jewellery shops across the country have been robbed of or burgled, with Dhaka witnessing the highest number of incidents at 11. Other affected districts include Munshiganj, Sylhet, Cumilla, Khulna, and Habiganj. Jewellery shops see Eid sales decline amid soaring gold prices Given the current situation, jewellers fear that the risks may increase during the Eid holidays. Speaking at the press conference, victimised businessman M A Hannan Azad, proprietor of the jewellery shop Alankar, shared his terrifying experience. He said, "At around 5 am on 26 March, a group of 25-30 men attacked my house. They specifically targeted me. The way they broke through the gate and entered within just five to ten minutes suggests they were well-trained robbers. They even attempted to abduct me. After such an incident, it is only natural that we feel unsafe." BAJUS Acting President Gulzar Ahmed urged jewellers to take personal and institutional measures alongside government-provided security. He recommended installing CCTV cameras, increasing the number of security guards, and collaborating with market owners’ associations to determine how best to ensure enhanced security for jewellery establishments during the Eid holidays. Gold price increases by Tk 2,613 per bhori in Bangladesh BAJUS further demanded armed security personnel to guard jewellery shops and called for swift trials of those involved in thefts and robberies. The association warned that if the security situation does not improve, they will decide their next course of action after 15 April.

Bangladesh Bank has re-fixed the mobile financial service (MFS) transaction limit. The payment system department (PSD) of the central bank issued a circular in this regard on Thursday (Mar 27). CIB report mandatory for agricultural loans: Bangladesh Bank According to the circular, the central bank set a new daily cash in limit for agent points at Tk 50, 000, instead of Tk 30, 000. The monthly cash in limit was extended to Tk3,00, 000 from Tk 2,00,000. The cash-out limit for agent points has also been extended to Tk30,000 from Tk25,000 in one day. The monthly cash out limit has also been extended to Tk 2,00,000 from Tk 1,50,000. Bangladesh Bank allows startup companies to invest abroad The person-to-person (P2P) money transfer daily money transfer limit has been extended to Tk 50,000 from Tk 25,000. The monthly P2P transfer limit is re-fixed at Tk 3,00,000 from Tk 2,00,000. The circular stated that the MFSs can reduce the transaction limit in considering the risk assessment of clients. The decision will be effective immediately, said the central bank.

The National Board of Revenue (NBR) is preparing a new Tax Exemption Policy with the aim of making it harder for any individual to avail it. The decision to allow tax exemptions is being taken away from the NBR. It will now rest solely with Parliament to grant exemptions, said NBR chairman Md Abdur Rahman Khan. “This is now at the final stage, it is stated that the government and the NBR will not give any tax exemption, only Parliament will give that. We are making it more harsh,” he said while speaking at the pre-budget meeting with the Retired Tax Officers’ Welfare Association at the Revenue Building. He also made it clear that no individual, except in the interest of the republic, will be considered for tax exemption. According to available data from the NBR, Individual taxpayers received over Tk40,000 crore in tax exemptions, more than double the amount provided to companies. The International Monetary Fund (IMF) also provides guidance on streamlining tax expenditure in Bangladesh, a requirement included in the $4.7 billion loan package. The multilateral lender also stipulates an annual increase of 0.5% in the tax-to-GDP ratio up to FY26. NBR chairman urges Finance Adviser to reduce budget size The government recognises that the provision for tax exemptions has been misused. When tax exemptions are granted for social welfare purposes under this provision, some black money holders also exploit these benefits to pay taxes at reduced rates in certain cases. People are taking advantage of the benefit by declaring their income from fishery and paying taxes at a lower rate, but the true source of such income is always in question. Tax exemptions are also provided to promote local industries, encourage investment in backward areas and high-tech industries, and attract businesses to economic zones. However, there are complaints that some industries have been exploiting tax exemptions for years by using their influence or by unethical means. According to the NBR some 102 types of sectors currently receive partial or full tax exemptions. Forty of these exemptions apply to individual taxpayers, while the remainder apply to companies, industries, or investments. The NBR claims that widespread tax exemptions are costing the revenue board a significant amount of revenue and that no study has been done to assess the impact of these exemptions. Abdur Rahman Khan several times referred to a study which showed that NBR conceded the same amount in tax exemption that it collected as revenue. The NBR chairman said that the revenue collecting authority is thinking actively to rationalise the tax-related issues. “They will pay taxes on their income or profit, if they hav33e refund we have to pay that, there is nothing to put restriction on their logical refund claim,” he said. He also said that this time the government wanted to establish discipline in the revenue sector. “We have used the policy very aggressively in the past, it seemed that commissioners, first secretary and second secretary from the NBR will do everything to collect the revenue,” he said. Abdur Rahman Khan said that the zero return submission is almost two-thirds of the total income tax return. NBR will announce tax rates one year ahead, to help businesses plan accordingly: NBR Chairman “I have asked the field level officials why they are not serving notices to these taxpayers,” he said. He put emphasis on the enhancement of operational efficiency and functional competence among the tax officials. “We are not applying these, we are getting out from these two for collecting revenue, we are totally dependent on the policy,” he criticised.