United News of Bangladesh

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.

The interim government is taking steps to remove obstacles and dismantle syndicates to establish good governance and ensure a genuine ease of doing business, said Lutfey Siddiqi, special envoy to the Chief Adviser on international affairs. He made the remarks while speaking as a special guest at a seminar titled ‘LDC Graduation: Impacts on Agro Sector, Export Diversification and The Way Forward,’ held at the Economic Reporters' Forum (ERF) auditorium in Paltan on Tuesday. The event was jointly organised by the ERF and the Bangladesh Agrochemicals Manufacturers Association (BAMA). He highlighted Bangladesh’s strategic advantage in becoming a manufacturing hub, leveraging its large workforce. The interim government is identifying problems and working to resolve them to dismantle business syndicates and streamline services, he said. Bangladesh Bank lifts ban of foreign tour for NBFIs Citing an example, he added, “One of the benefits of this initiative is evident in air ticket prices which were previously inflated due to syndicates.” On agrochemical manufacturing, he assured that the government would take necessary steps to promote local production to ensure smooth agricultural output. Chief Adviser’s Press Secretary Shafiqul Alam said  for the past 20 years, ease of doing business was mostly discussed on paper. “The interim government, led by Professor Muhammad Yunus, is working to ensure a real and effective ease of doing business,” he said . BAMA President KSM Mustafizur Rahman delivered a presentation on Bangladesh’s agrochemical production and market potential. Deepal signs agreement with Crack Platoon for nationwide EV charging network He stressed the need to facilitate local agrochemical manufacturing at a lower cost to reduce import dependency. Ashraful Haque Chowdhury, president of the D-Chamber of Commerce, also spoke at the event.

The Bangladesh Bank has lifted the ban on foreign travel by officers and employees of Non-Bank Financial Institutions (NBFIs). The Financial Institutions and Markets Department of Bangladesh Bank issued a directive in this regard on Monday. The directive states that a circular was issued on May 29, 2022, asking officers and employees of finance companies to stop traveling abroad to participate in training, study tours, exposure visits, meetings and seminars. Under the new directive, officers and employees of finance companies can travel abroad with the approval of the appropriate authorities in accordance with the relevant policies of their own organizations for essential foreign travel. However, officers and employees of finance companies who have separate instructions from Bangladesh Bank regarding foreign travel must comply with the provisions of the relevant directives.

DHS Autos Limited, the official distributor of Changan Automobiles and Deepal in Bangladesh, on Sunday signed an agreement with Crack Platoon Charging Solutions Limited to kickstart the creation of a nationwide EV charging network. The signing took place in the Deepal showroom in Tejgaon in the capital.  The agreement was signed by DHS Autos CEO Imran Zaman Khan, and Crack Platoon MD Tenver Sahariar Utso, in the presence of other high officials from both companies. DHS Autos recently launched luxury EV brand Deepal in a lavish event. This agreement further reinforces DHS’ commitment to creating a robust nationwide EV charging network. In collaboration with Crack Platoon, DHS Autos has 17 EV chargers all over Bangladesh, including one high-speed DC charger. Two more DC chargers will also be installed by April.

Jewellery sales have taken a hit this Eid as soaring gold prices make ornaments less affordable for many buyers. The Bangladesh Jewellers Association (Bajus) recently raised gold prices to a record high, with the latest hike coming last Thursday. A year ago, a 22-carat gold bar cost Tk 1.11 lakh, but today, its market price stands at Tk 1.55 lakh, including VAT and labour charges. This marks an increase of Tk 44,000 per bhori in just one year—the highest price surge recorded so far. "Many customers are visiting jewellery stores for Eid shopping, but due to the high prices, they are purchasing smaller quantities, only as much as they can afford," said Abdus Salam, owner of Chandrima Jewellers in Mouchak Market. He noted that gold jewellery sales have dropped by half compared to last year. Gold prices reach record high ahead of Eid Gold has long been cherished for its aesthetic appeal and cultural significance, particularly among women. While demand typically rises during festive seasons, this year, traders report a sharp decline in sales due to the steep price hike. Under the revised pricing structure, the cost per bhori is now: 22-carat: Tk 154,945 21-carat: Tk 147,900 18-carat: Tk 126,776 Traditional method: Tk 104,498 Gold price increases by Tk 2,613 per bhori in Bangladesh Bajus has also said that a 5% government-mandated VAT and a minimum 6% making charge must be added to the selling price. But making charges may vary based on the jewellery's design and quality.