United News of Bangladesh

Banks have failed to follow Bangladesh Bank’s instructions to keep ATM booths in service during the Eid holidays. There is a 10-day holiday from June 5 to June 14 on the occasion of Eid-ul-Azha. Banks are also closed during this holiday. As a result, ATM booths have become the only hope for withdrawing cash. But during this long Eid holiday, the booths have not provided the desired service. Customers are facing hardships. Most of the ATMs in Dhaka city are now out of service or out of operation. The same is true of ATMs located in different districts. The central bank announced in a circular on May 29 that all scheduled banks in the country will have to provide sufficient money to their ATM booths to allow customers to make smooth financial transactions during the Eid holiday.  Bangladesh Bank instructs commercial banks every year before Eid to keep sufficient money in the booths and have a system for refilling around the clock. But in reality, this is not reflected. Several bank officials told UNB that ATM booths are usually operated in two ways – one is a booth attached to the bank branch, and the other is a separate or independent booth. The booths adjacent to the branch are operated by that branch.  Since the banks were closed last Thursday during the Eid holiday, new money could not be deposited in these booths because all the branch officials were on leave.  However, some banks have taken special initiatives and have kept some officials in charge only for filling money in ATMs.  As a result, although some booths had money, most were empty. An official of Bangladesh Bank said, “We have already given instructions so that sufficient money is kept in each booth.” However, there are complaints at the field level that many banks are not following those instructions.  

Bangladesh Bank's initiative to inject Tk 232 crore into the leather sector for procuring rawhide during Eid-ul-Azha has fallen significantly short, with only Tk 125 crore disbursed to businesses, according to industry insiders. Bankers cited a lack of interest among leather traders in taking out new loans as a reason for the shortfall, while the industry insiders highlighted a sharp rise in loan defaults, which has made banks more reluctant to extend credit to the sector. As a result, tannery owners and seasonal leather suppliers have been unable to purchase sufficient quantities of rawhide during the peak Eid-ul-Azha season. Stakeholders are now calling for easier loan terms and relaxed documentation requirements ahead of what is typically the country’s largest rawhide collection period. Qurbani Rawhides: Even price revisions fail to ease market woes  Although nine banks initially approved Tk 232 crore in loans for rawhide procurement this year, only Tk 125 crore was disbursed, leading to a funding shortfall that entrepreneurs say has hampered both the collection and processing of rawhide. According to sources, the Tk 125 crore disbursed this Eid season marked a steep decline from previous years -- down from Tk 270 crore in 2024, Tk 259 crore in 2023, Tk 443 crore in 2022, Tk 735 crore in 2021 and Tk 1,800 crore in 2019. Md Shaheen Ahmed, Chairman of the Bangladesh Tanners Association (BTA), told UNB, “Since leather is a perishable product, it needs to be collected and stored quickly. Cash is needed to buy leather collected from various warehouses across the country. “For this, the warehouses collect leather from part-time traders during the Eid season. But even though tannery owners do business with their own capital throughout the year, special financing is needed for additional cash during Qurbani. This time, the banks had a demand of Tk 300–350 crore. They gave only Tk 125 crore, which is not enough,” he added. He said with adequate cash loan support, problems in the leather sector could have been mitigated. “The poor and needy would have received cash from the leather. Foreign exchange income would have increased by exporting this,” he pointed out. Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan said the target for lending to the leather sector this time was Tk 232 crore. “It is not possible to say before the bank opens how much loan will be waived in the end,” he said. He also acknowledged that a segment of traders fail to repay borrowed funds, which has led to a significant rise in loan defaults in the sector. “If they ask for loans and don't repay them, who will give them new loans? So they have to take loans with the mindset of repaying them. Otherwise, the crisis will not end,” he said. 7.74 Lakh Qurbani rawhides preserved in Chattogram Division According to Bangladesh Bank’s latest report, the outstanding loan balance in the leather industry stood at Tk 12,628 crore as of December 2024. Of this, Tk 4,844 crore has defaulted, accounting for 38 percent of total loans in the sector. The Bangladesh Tanners Association (BTA) represents approximately 800 members, including tannery owners and commercial exporters. There are 1,866 large and medium-sized tanneries across the country. Besides, many small tanneries collect leather from seasonal entrepreneurs during Eid-ul-Azha. Tanner Anwar Hossain said while most rawhide is collected during Eid-ul-Azha, inadequate management leads to the wastage of roughly 30 percent each year. The leather sector not only contributes to national growth and employment but also earned approximately $1.13 billion in foreign exchange during the last fiscal year, underscoring the need for focused attention and support. Amjad Ali, a seasonal leather supplier, said, “Banks only give loans to tannery owners and exporters. They do not give loans to others involved in the raw leather business. If money had been received according to demand, the spoilage of leather could have been prevented.”  

Businesses in Bangladesh have fallen into a holiday trap, with economic activity slowing due to supply chain disruptions and bank closures during the extended 10-day Eid-ul-Azha holidays. Export-import operations through land ports, delivery of goods to retailers and the supply of seasonal fruits -- such as mangoes, jackfruits and litchis -- have all been disrupted during this holiday period. Although the mango season is now in full swing, the market in Kansat, Shibganj upazila of Chapainawabganj, known as the country’s largest mango hub, has been struggling with sluggish sales amid the long break. Since the beginning of peak harvesting, the mango market has remained paralysed by the holiday closure. As a result, prices have fallen by Tk200 to Tk400 per maund (40 kg) and in some cases, even more. Trading underway with index making gains in Bangladesh bourses On Wednesday (June 11), Aroz Uddin, a mango farmer from Shibganj, told UNB over the phone that he had been at the market since 9:45 am with 9.5 maunds of mangoes. Standing under the scorching sun, he managed to sell them at around 1:45 pm for Tk1,700 per maund. He said he had sold the same quality mangoes for Tk2,300 per maund before the Eid break.  Ramzan Ali, a mango trader from Chapainawabganj, said the price of mangoes has dropped by Tk300 to Tk500 per maund after Eid, with courier services shut during the holidays. Online sellers have also been absent, leading to further declines in market prices. While traders had anticipated lower supply during the holidays, this did not happen at all. Farmers brought their mangoes to market regardless of the price and sold them before heading home, said traders in Chapainawabganj. Mokhlesur Rahman, an online mango seller in Chapainawabganj, said, "Online mango sales are increasing day by day. So far this season, I’ve sold 80 maunds of mangoes. Hundreds of sellers like me are working. Since 4 June, most online sellers have stopped or reduced sales. This seems to have affected the mango market severely during the long Eid holidays, which coincided with the main mango harvesting season." Trade through Benapole to remain suspended for 10 days  The trading of other seasonal fruits, including litchis and jackfruits, has also been affected by the prolonged holiday. Rubayet Ahmed, a garment trader from the Ashulia area, told UNB that he had prepared 200,000 pieces of readymade garments before the Eid break but was unable to make the shipment due to a lack of transport and incomplete banking documentation. The extended holiday has affected export businesses, as many sectors are involved in processing export orders.  He emphasised the need for an alternative system to ensure continuous export-import activities.  Rubayet also mentioned that an import order for raw materials from China could not be processed because of the bank holidays. Bangladesh is currently experiencing an unprecedented 10-day Eid-ul-Azha holiday, a significantly longer break than usual.  While many expected a complete economic standstill, a closer look reveals a complex blend of challenges and shifting business patterns. The broader effects include: The extended break -- spanning official holidays and weekends--has triggered a mass exodus from cities like Dhaka, transforming consumer behaviour, disrupting business operations, and shaping a distinctive economic landscape. Mass Migration: A large movement of people from Dhaka and other cities to rural areas, with bus terminals, railway stations and ferry terminals teeming with travellers. Rural Boom: The migration has boosted rural economies. Local small businesses and informal sectors have seen a surge in activity, driven by increased spending on essentials, local crafts and services in villages. Urban Lull: Business activity in major cities has slowed. Delivery services, restaurants, hospitals, and private offices have operated at reduced capacity, leading to a lull in urban commerce during the Eid holidays.

A total of 7,74,756 rawhides  of sacrificial animals have been preserved with salt in 11 districts of Chattogram division this time. The hides, collected from madrasas, orphanages and Lillah boarding houses across the division, include 7,74,756 cow and buffalo hides and 74,302 goat hides, according to information sent from Chattogram divisional administration to the control room of the Ministry of Commerce. Among the districts, Chattogram preserved 2,72,100 hides, Cox’s Bazar 37,889, Noakhali 1,13,831, Chandpur 23,065, Brahmanbaria 99,781, Khagrachhari 5,859, Lakshmipur 11,837, Feni 13,509, Rangamati 2,848, Bandarban 2,292 and Cumilla 1,91,775. Rawhides being sold at govt-set prices: Commerce Adviser The rawhides were preserved under the supervision of district and upazila administrations using salt provided free of cost by the government. The government supplied 30,000 metric tonnes of salt to orphanages, mosques and madrasas across the country to ensure proper preservation of hides and uphold the rights of orphans in the Qurbani season.  This preservation process is expected to keep the rawhides usable for two to three months locally.

Niaz Ahmed from Sylhet has won a Royal Enfield motorcycle by referring the bKash app to the highest number of people during a recent referral campaign. The award was presented to Niaz at the Royal Enfield showroom in the capital's Tejgaon, recently, bksah said in a media statement on Saturday. bKash offers refrigerator, TV for top remittance receivers this Eid In addition to the grand prize, other top referrers received various attractive prizes. Moreover, for each successful referral during the campaign, referrers earned a BDT 50 bonus. The campaign ran from November 15, 2024, to December 29, 2024, and rewarded the highest referrers. Participants referred non-bKash app users through their unique referral links within the app. The bKash app continues to enhance its platform by introducing new and innovative services. This campaign aimed to motivate customers to explore and familiarize themselves with these new features through the app. Up to Tk 6,000 discount and cashback on Eid shopping with bKash payment Sharing his thoughts, Niaz said, “I often take part in bKash’s campaigns. My main goal was to encourage my near and dear ones to start using the bKash app for their financial needs, and I’m thrilled to have won the Royal Enfield as a result. It’s a wonderful feeling—thank you, bKash!”

Banking transactions across both public and private banks concluded in a busy atmosphere on Wednesday, the last working day before the Eid-ul-Azha holidays, with customers crowding branches to withdraw cash. A visit to several banks in the capital revealed long queues from the morning, as customers stood in line to withdraw money. Transactions on the day were significantly higher compared to other working days. Bank officials said the majority of customers came to withdraw large sums of money, mainly to purchase sacrificial animals. With banks scheduled to remain closed for 10 consecutive days during the Eid holidays, many also withdrew cash for other festival-related expenses. Moinul Hasan, a senior official at the Banani branch of Standard Bank, said, “Every year, there is pressure on banks the day before Eid-ul-Azha. This year is no exception. Many customers are withdrawing savings to meet the cost of Qurbani.” When asked whether the pressure was causing any difficulty in cash disbursement, Jasim Uddin, manager of Social Islami Bank’s Banasree branch, said, “The bank has sufficient cash. Due to heavy customer flow, there may be some delays in certain branches, but there is no cash shortage.” FICCI responds in detail to budget, flags concern over tax hikes Some customers, however, expressed dissatisfaction, alleging delays in receiving large amounts of money against cheques. Many reported having to wait for extended periods. Mir Hasan, a customer of a private bank, said, “I came in the morning with a cheque for Tk 2 lakh. At first, they told me to come after lunch. Later, they said they couldn’t give Tk 2 lakh at once—I would have to take Tk 1 lakh now and collect the rest in the last hour.” The rush wasn’t limited to private banks—state-owned banks also experienced similar pressure. At Sonali Bank’s Motijheel branch, long lines of customers were seen waiting to withdraw cash. Mamunur Rahman, one such customer, said, “I came to buy cattle at the Kamalapur market. Thought I’d withdraw cash first. But the crowd at the bank is overwhelming.” ATM booths also saw significant crowds, with queues in some areas extending onto nearby streets. Many customers also faced server issues while trying to withdraw money from booths. Mashayet Priyoti, one of the affected customers, said, “I waited in line for half an hour outside and another 15 minutes near the booth because of server issues. Thankfully, I was eventually able to withdraw the money.” Commenting on the situation, Bangladesh Bank Executive Director and spokesperson Arif Hossain said, “To reduce customer pressure, people are being encouraged to use digital transactions, especially at cattle markets digital payments can also ensure better security.” The Eid-ul-Azha holidays will begin from June 5, and banks along with government offices will remain closed until 14 June. However, to facilitate payment of wages and bonuses to garment workers and ensure smooth import-export operations, scheduled bank branches in industrial areas will remain open on June 5, 11 and 12.

Trading at the Dhaka and Chattogram stock exchanges began on a positive note on Wednesday, the fourth working day of the week, with most listed companies witnessing price increases. At the Dhaka Stock Exchange (DSE), the benchmark index DSEX rose by 25 points. The other two indices also edged up -- the Shariah-based DSES gained 5 points while the blue-chip index DS30 advanced by 10 points. Most of the traded companies saw their share prices rise, with 229 gaining, 62 losing and 86 remaining unchanged. In the first two hours of trading, the DSE recorded transactions worth over Tk 75 crore in shares and units. Dhaka stocks extend losses, Chattogram index edges up Meanwhile, the overall index of the Chattogram Stock Exchange (CSE) increased by 29 points. Out of 77 companies that participated in trading on the CSE, prices rose for 31, fell for 29, and remained unchanged for 17. The first half of trading at the CSE saw shares and units exchanged worth over Tk 3 crore.

Export and import activities between Bangladesh and India through Benapole land port will remain suspended for 10 days on the occasion of Eid-ul-Azha. Mamun Kabir Talukdar, Deputy Director of Benapole Land Port, said trade operations will be closed from June 5 to 14 in line with government directives. “Security measures have been intensified to prevent any sabotage or untoward incidents during the holiday,” he said, adding that Benapole police station has been alerted accordingly. Aminul Haque Anu, President of the Benapole Port Import and Export Association, said no loading or unloading of goods will take place during this period. 36 garments-laden trucks stranded at Benapole port Port activities are scheduled to resume on June 15. However, Ibrahim Ahmed, officer-in-charge of Benapole Checkpost Immigration Police, said immigration services at the land port will continue to operate as usual during the holidays.

The Institute of Chartered Accountants of Bangladesh (ICAB) congratulated the interim government on the announced budget of FY2025-26, praising its strategic and timely approach amid global and domestic economic challenges. While commending several key initiatives, ICAB also highlighted areas requiring further consideration, particularly regarding the tax rate for "cashless companies." People first, not mega projects: Interim govt unveils first national budget Maria Howlader FCA, President of ICAB, stated, "We thank the Finance Minister for declaring such a strategic and time-befitting budget by paying attention to the details and by thorough analysis considering economic turmoil." ICAB welcomed the budget's overall size, amounting to Tk7.9 lakh crore and specifically lauded the ambitious development budget of Tk2.3 lakh crore, describing it as "a very encouraging step to move forward for a developing economy like ours" despite prevailing international conflicts, internal political shifts, high inflation, and global uncertainties. DoE continues anti-pollution drive across the country   A significant positive noted by ICAB is the emphasis on expanding the tax net to enhance the tax-to-GDP ratio. The institute expressed confidence that the joint initiative between the NBR and ICAB in implementing the Document Verification System (DVS) will "facilitate significantly to achieve the targeted revenue."

The Foreign Investors Chamber of Commerce and Industry (FICCI) has given a mixed reaction to the national budget for FY2025- 26. In a statement, FICCI highlighted the budget's commitment to easing burdens on specific sectors and promoting a predictable tax system. The reduction of the source tax for construction companies and essential goods is a pragmatic move that will offer good relief to these vital industries. The chamber also lauded the decision not to tax dividends received from a Joint Venture by a JV partner, preventing double taxation. Furthermore, FICCI commended the alignment with international best practices by ensuring the Double Taxation Avoidance Agreement takes precedence over the Income Tax Act 2023. Other positive aspects noted by FICCI include the simplification of advance tax for commercial importers (though acknowledging potential cost escalation for low value addition), the extension of the rebate and refund period from four to six months for businesses, and the digitization of sales and purchase records through ERP systems, eliminating the need for hard copies. Amendments to the Customs Act, 2023, aimed at modernization, tariff restructuring, and reduced penalties for violations, were also welcomed as steps towards simplifying import processes. The proposed allocation of Tk5,040 crore for the Public-Private Partnership (PPP) fund in FY2025-26 was seen as a supportive measure for increasing foreign investment. TIB comes down hard on govt for retaining black money whitening provision However, FICCI raised several contentious points. A major concern is the imposition of an additional 7.5 percent corporate tax on publicly traded companies with less than 10 percent of their shares issued through an Initial Public Offering (IPO), deeming its impact "discriminatory." Equally troubling, according to FICCI, is the withdrawal of the reduced tax rate previously available for companies’ conducting transactions through banking channels. This is a counter-productive measure to the nation's efforts to establish a cashless society and places Bangladesh at a disadvantage compared to economies like Vietnam and Indonesia, the chamber asserted. The chamber also expressed apprehension regarding salaried taxpayers, stating that while the increase in the tax-exempt income threshold at the entry level is positive, the "overall changes introduced in the tax structure are likely to impose an additional burden on middle-income earners when viewed in totality." A significant increase in VAT on online sales, from 5 percent to 15 percent, was also flagged as a measure that will make it difficult for the online business industry to survive and will make it even harder to expand business further, said FICCI.