United News of Bangladesh

The concept of a cashless economy refers to an economic system where financial transactions are carried out through digital means rather than physical currency. In recent years, Bangladesh has witnessed rapid growth in digital financial services, leading many to believe that the country is moving towards a cashless future. However, the question remains: has Bangladesh truly become a cashless economy, or does the country still heavily depend on cash? What is a cashless economy? A cashless economy is a system where financial transactions are conducted digitally, eliminating the need for physical currency. Transactions are made using mobile banking apps, credit/debit cards, digital wallets, and QR codes. Popular examples in Bangladesh include mobile financial services like bKash and QR code payments at local vendors. The benefits of a cashless economy include increased transparency, faster transactions, improved tax compliance, and enhanced financial inclusion. It also leads to greater economic efficiency by simplifying money flows and reducing handling costs.  Read more: Sanchayapatra at Maturity: Encashment or Renewal of Bangladesh’s National Savings Certificate However, it also presents challenges such as reliance on technology, which can be vulnerable to failures and cyber threats. Digital exclusion is another issue, as people without smartphones or internet access may be left behind. Also, concerns about cybersecurity and data privacy need to be addressed to protect users from fraud and breaches. While a cashless economy brings significant benefits, these challenges must be carefully managed for a successful transition. Bangladesh’s Developments toward a Cashless Economy Bangladesh has seen significant growth in mobile financial services (MFS) with platforms like bKash, Rocket, and Nagad, enabling millions to perform digital transactions. These services allow users to send and receive money, pay bills, and shop online. The COVID-19 pandemic accelerated this trend, pushing more people toward contactless transactions. Read more: What to Consider Before Taking a Personal Loan from a Bangladeshi Bank E-commerce has flourished as well, with businesses increasingly adopting mobile payments and card systems. Digital payments are now common in urban areas, extending from large stores and restaurants to ride-sharing services and even street vendors. The government's initiatives, particularly the "Digital Bangladesh" vision and the "Cashless Bangladesh, Smart Bangladesh" campaign, have been crucial in this transformation. The introduction of QR code-based payments, like Bangla QR by Bangladesh Bank, has made it easy for even small and informal businesses to join the digital ecosystem. This low-cost solution allows customers and micro-merchants to make seamless transactions through various mobile apps and cards, paving the way for a more inclusive digital economy. Bangladesh Facing Challenges and Limitations Despite notable advancements, various obstacles continue to impede Bangladesh's complete transition to a cashless economy. A large portion of the rural population and informal sector still relies on cash, with many small business owners and daily wage workers hesitant to adopt digital payments due to limited digital literacy and concerns about taxation. Read more: Buying US Dollar Investment Bonds: A Comprehensive Guide for NRBs Uneven access to smartphones and reliable internet, particularly in remote areas, further exacerbates the issue. Even when digital tools are available, many users lack the necessary skills or trust to engage confidently with them. Additionally, fears around cybersecurity, fraud, and data privacy create barriers to adoption.  Financial institutions also face infrastructure challenges, including a shortage of point-of-sale (POS) terminals and inconsistent customer service, which affects user satisfaction and overall trust in digital systems. Is Bangladesh a cashless economy? Bangladesh is making strides toward a cashless economy, though full digitalisation remains a work in progress. Mobile financial services (MFS) and QR code payments have grown rapidly, with monthly transactions exceeding BDT 3,000 crore, as per Bangladesh Bank.  Read more: How to Invest in Bonds: A Comprehensive Guide Urban areas lead the shift, while rural and low-income communities still rely heavily on cash. Initiatives like Bangla QR and personal retail accounts offer promise, particularly for micro-merchants and the informal sector.  However, for digital payments to be truly inclusive, the country needs stronger policy support, widespread financial literacy, improved infrastructure, and targeted awareness campaigns. These will help to bridge the gap and ensure equitable access to digital finance across all segments of society.  Final Lines Bangladesh is progressing steadily on the path to becoming a cashless economy, but it is not there yet. The growing popularity of mobile banking, the government's proactive digital initiatives, and the development of low-cost, interoperable payment solutions are commendable.  Read more: How to Buy Bangladesh Government Treasury Bond: Everything You Need to Know Yet, barriers such as cash reliance, digital exclusion, and security concerns continue to hold back full transformation. With the right investment, policy support, and public-private collaboration, Bangladesh has the potential to unlock the benefits of a truly cashless society and lead the way in digital financial innovation in South Asia.

Executive Chairman of the Bangladesh Investment Development Authority (BIDA) Chowdhury Ashik Mahmud Bin Harun on Sunday said the Bangladesh Investment Summit 2025 helped the country receive initial investment proposals worth Tk 3,100 crore, stressing that time will say whether the Summit was successful or not. “The idea is to build the pipeline and to change the narratives about Bangladesh. That is what we tried to push,” Ashik told reporters at the Foreign Service Academy, adding that the investors who joined the Summit were very happy and they returned home with required information. Foreign investors eye consumer market, textiles, pharma, light engineering, renewable energy: BIDA Chairman He said several additional investment proposals are currently in the pipeline. Chief Adviser’s Press Secretary Shafiqul Alam and Deputy Press Secretary Abul Kalam Azad Majumder were, among others, present.  The BIDA Executive Chairman said they wanted to give the investors the right experience so that they talk about Bangladesh positively.  “We should do such summits regularly, at least once in a year. We would definitely say, clearly there were lots of interests,” he said. Ashik said similar events will help create positive interest and momentum among the investors and hoped that the next government will continue this. bKash wins BIDA’s ‘Excellence in Investment Award 2025’ Bangladesh hosted the global investors and top executives through the Bangladesh Investment Summit 2025 from April 7-10, aiming to spotlight the country’s evolving investment landscape, poised for transformative opportunities and unprecedented growth. Global investment leaders, executives and industry pioneers engaged in discussion as Bangladesh redefines the future of investment in one of the world’s most dynamic markets. Foreign investors express keen interest in Bangladesh: BIDA There were 710 participants at the Summit including over 415 foreigners from 50 countries. Around Tk 5 crore was spent to organise the four-day Summit, of which around Tk 1.5 crore came from the government and the remaining Tk 3.5 crore from partner organisations. The BIDA Executive Chairman said the big political parties and their leaderships were completely aligned with the Summit.

After cancellation of transshipment by India, Darshana rail port in Chuadanga witnesses no impact on exports and imports as the port is only used for bilateral trade between Bangladesh and India, with no commercial linkage to third countries such as Nepal or Bhutan. “At Darshana, all imports and exports take place exclusively with India. We have no trade connections with Nepal or Bhutan. So, the suspension of the transshipment facility does not affect us,” said Atiar Rahman Habu, general secretary of the C&F Agents’ Association at Darshana Rail Port. However, he noted a slight slowdown in port activities since August 5. “Goods movement is continuing, but the pace is not what it used to be. Traders are waiting for things to return to normal,” he said. Transshipment Facility: Four Bangladeshi trucks sent back from Benapole Port

Enhanced bilateral cooperation in logistics, infrastructure and investment topped the agenda during a meeting between the Dhaka Chamber of Commerce and Industry (DCCI) and a visiting Singaporean business delegation on Thursday. The 12-member team was led by Derek Loh, non-resident High Commissioner of Singapore to Bangladesh. They met with DCCI President Taskeen Ahmed at the Chamber office during their visit. Welcoming the delegation, Taskeen Ahmed highlighted Singapore's significant investment footprint in Bangladesh, noting it is the second-largest foreign investor with an investment of nearly USD 1.78 billion across various sectors. The bilateral trade between the two countries reached USD 2.64 billion in the last fiscal year. Taskeen said Singapore’s global reputation in efficient port and logistics management presents strong potential for collaboration. Adoption of IFRS can open doors to international finance, investment: DCCI President He invited Singaporean investors to explore opportunities in Bangladesh’s port operations, logistics, infrastructure, renewable energy, IT, agriculture and healthcare sectors. Taskeen also urged Singapore’s support in enhancing the skills of Bangladeshi SME entrepreneurs to increase export competitiveness. Technical assistance in modernising the jute and agriculture sectors was also sought. On the global front, Taskeen welcomed the US decision to suspend the imposition of additional tariffs for 90 days, calling it a relief for global trade, while hoping for a long-term resolution through diplomatic dialogue. High Commissioner Derek Loh emphasised the importance of reducing production and logistics costs to make business operations more competitive. He expressed Singapore’s interest in working closely with Bangladesh to boost port efficiency and infrastructure development. Derek Loh also stressed the need for reforms and automation in Bangladesh’s revenue sector and highlighted the benefits of adopting ESG (Environmental, Social and Governance) standards in industries. While ESG compliance may initially increase investment costs, Loh said it will improve export competitiveness in the long term. DCCI proposes single-digit VAT rate in budget recommendations He added that Singapore is keen on supporting Bangladesh in strengthening its logistics capacity and has recently increased investments in renewable energy, citing its potential to lower production costs. DCCI Senior Vice President Razeev H Chowdhury, Vice President Md. Salem Sulaiman, and members of the Board of Directors were also present at the meeting.

Economists, researchers and academics have emphasised curtailing non-performing loans to ensure good governance in the banking sector and make the country's economy vibrant. They also said that growing non-performing loans create challenges for banks and the economy of the country while global trate war is pushing the world towards chaos. They made the remarks in a session on the 2nd day of ‘10th Annual Banking Conference-2025, organised by Bangladesh Institute of Bank Management (BIBM) at its Mirpur office. Professor Dr. Barkat A Khoda was keynote speaker at the inaugural session of the second day. Several sessions including FinTech and Financial Sector, Islami Banking and Governance, Risk Management and Bank Performance were held on the 2nd day. The conference sessions cover contemporary issues and sustainability concerns on banking, finance and the economy both in the national and international context. Speaking at an event Dr. Shah Ahsan Habib, senior Professor of BIBM said that the global economic and financial landscape is undergoing unprecedented transformation. Bad loans in banking sector hits Tk6.75 lakh crore:  White Paper “We are witnessing a paradigm shift, a new wave of economic nationalism, protectionism, and currency uncertainty that is challenging for the foundation of the International Monetary Order,” he said. The economy in today’s context reminds us of a long-gone yet defining period in economic history: ‘Interwar Period’ or the period between the First and Second World War. That time was marked by suspended gold convertibility, monetary fragmentation, and the notorious “beggar-thy-neighbour” policies, he pointed out. “We know that Beggar-thy-neighbour policies were the economic strategies where a country tries to improve its own economy at the expense of others, often through tariffs or currency devaluation, so we have to prepare for any such previous situation,” he added. He said that the leading economies were engaged not with cooperation, but with tariffs, trade barriers, and exchange controls now. In conséquences, a great economic depression like 1930 could be repeated. So there is need to prepare for a bad situation. Md. Sabur Khan, chairman, Daffodil International University, Mohammad Abdul Mannan, chairman, First Security Islami Bank, Dr. Mahmood Osman Imam, Professor and dean, Business Studies, University of Dhaka chaired different sessions of the event on Thursday. Around 1000 officials of different banks, economists, academicians and panelists participated in the two days session of the conference. IMF voices concern over rising bad loans in banks The annunal conference has been thr hallmark of BIBM since 2012. The two- day event brings together experts, academicians and researchers from all over the world to exchange and share knowledge, experience and research outputs on banking and related issues.

Commerce Adviser Sk Bashir Uddin on Thursday said India's sudden cancellation of trans-shipment facilities will not cause any problem as the government will try to overcome the situation on its own. “These (trans-shipment) facilities have been cancelled abruptly. I held a meeting with all relevant stakeholders yesterday. We do not feel this will create any major issue. We are taking all necessary steps to ensure that our own capacity and competitiveness are not hampered and that our exports continue without any logistical disruptions,” he said while talking to reporters at the Secretariat. Regarding the measures taken following the cancellation, the adviser said, “I won’t share those with you at this moment. We are working to address structural and cost-related challenges to enhance our competitiveness. I don’t see any reason for concern here.” Transshipment Facility: Four Bangladeshi trucks sent back from Benapole Port Asked whether Bangladesh plans to send a formal letter to India regarding the cancellation, the adviser said, “We are not considering that at the moment.” Responding to a question over the volume of exports that used India’s trans-shipment facilities, Bashir said, “Around 40,000 to 50,000 tonnes of goods used to be exported through Indian ports, particularly Delhi and Kolkata. These were primarily destined for European countries. We hope to quickly resolve this issue by strengthening our own capacity, InshaAllah.” India stops transshipment facility for Bangladesh’s export cargo India on Tuesday abruptly cancelled the facility allowing Bangladeshi goods to be shipped to third countries using Indian territories under the trans-shipment arrangement.

Bangladesh Bank Governor Dr Ahsan H. Mansur said all Islamic banks will be merged into two entities. He said, ‘political interference in banks will be stopped so that no one can establish a reign of loot.’ He said this at the 10th Annual Banking Conference at BIBM at Mirpur on Wednesday. The governor said, ‘Both banks and non-bank financial institutions need reforms because of irregularities, scams and failure of good governance.’ Foreign investors express keen interest in Bangladesh: BIDA For this, after the political change on August 5 last year, Bangladesh Bank took the initiative to form a task force, introduce new laws and amend existing laws such as the Bank Companies Act, he pointed out. As a result, some of the looted banks have started to turn around, but several banks are in a state of collapse, said  Mansur. Noting that the condition of all banks is not bad, but the condition of those that are bad is very bad, he said. The governor said, "No one will be allowed to escape by looting bank money and political interference in banks will be stopped." He also said, "The central bank will intervene in the bank board in the interest of the customers and the board of another bank will be dissolved in the next few weeks.”

ShopUp, Bangladesh’s largest B2B commerce platform, and Sary, the leading B2B marketplace and services platform in the Gulf, have merged to form SILQ Group. This merger brings together Gulf & Emerging Asia, creating the largest B2B commerce platform to serve the fastest-growing consumer markets in the region, and across the globe. The merger is backed by a $110 million funding led by Sanabil Investments, a wholly owned company by Saudi Arabia’s Public Investment Fund (PIF) and Peter Thiel’s Valar Ventures. This funding includes an equity investment and financing facility for SILQ Financial, the group's financial services arm. Together, ShopUp and Sary have served over 600,000 retailers, hotels, restaurants, cafes and wholesalers, impacting tens of millions of customers in mom-and-pop shop communities since inception. To date, the combined network has made over $5 billion in transactions on their platforms and exceeded $750 million in embedded financing disbursements. Besides, the companies have facilitated a total of 100 million shipments. This will establish SILQ as the platform of choice that enables businesses to grow by increasing their efficiency through a combination of financial tools, logistic services, and commerce features. Post-merger, both ShopUp and Sary brands will continue to operate in their respective geographies under their respective brand names, while leveraging SILQ’s infrastructure and combined capabilities. Govt to create funds to boost startup sector: BIDA Chairman The group will also establish SILQ Financial as its financing arm. It will be creating financial infrastructure, doubling down on the embedded financing scale of both markets and the Point-of-Sales (POS) business. ShopUp’s Founder & CEO, Afeef Zaman, will serve as SILQ Group CEO, while Sary’s Founder & CEO, Mohammed Aldossary will lead SILQ Financial as CEO. “Through this merger, we’re entering what’s set to become one of the world’s largest trade corridors—projected to reach $682 billion. We’re in the front seat to serve some of the most exciting, fast-growing economies that are set to shape global consumption in the coming decades, giving them greater access to products from around the world,” said Afeef Zaman, CEO of SILQ Group. "By merging our strengths, we're not just expanding our reach - we're revolutionizing how digital commerce serves Gulf's merchants and South Asia manufacturers. This alliance brings together the best of both worlds: deep regional expertise and world-class technology to empower every business in our ecosystem where financial services are a cornerstone," said Mohammed Aldossary, CEO of SILQ Financial. "SILQ is poised to become a leading B2B commerce player both regionally and globally. It addresses numerous challenges faced by B2B businesses seeking a fully integrated platform that combines financial, logistics and commerce services. This merger will enhance SILQ’s depth, expertise and scale. We remain committed to supporting the company’s leadership to ensure this merger benefits all stakeholders,” said a spokesperson at Sanabil Investments. "Saudi Arabia and the Gulf represent one of the most exciting economic stories in the world today. This merger reflects a bold vision to place these markets at the center of a new commercial ecosystem connecting with South Asia. With a leadership team that has consistently demonstrated courage and foresight, SILQ has the potential to define this category through ambition that matches the regions it serves," said James Fitzgerald, Founding Partner at Valar Ventures. SILQ is backed by renowned investors, including Sanabil Investments, a wholly owned company by Saudi Arabia’s Public Investment Fund (PIF), Peter Thiel’s Valar Ventures, Flourish Ventures, VSQ, MSA Capital, Rocketship VC, STV, Wafra Investment (owned by Kuwait PIFSS), Peak XV, Prosus, Tiger Global, Endeavor Catalyst, and Raed Ventures. Bangladesh bank to launch Tk 800–900cr fund for startups: Governor This round will also see participation from new investors like Qatar Government owned Qatar Development Bank. SILQ is set to establish a strong presence in Qatar to extend its offering to SMEs in Qatar.

The government is working to create startup funds from budget allocation to encourage youth in entrepreneurship. Executive Chairman of Bangladesh Investment Development Authority (BIDA) Ashik Chowdhury said this at a press briefing on Monday evening. He briefed reporters about the day's session of Bangladesh Startup Connect, an event being held at Hotel InterContinental as a flagship programme under the Bangladesh Investment Summit 2025 that opened on Monday. BIDA Chairman, CCECC President discuss potential 2nd Chinese economic zone in Mongla He said that Bangladesh Bank will release Tk800 crore from different banks’ startup funds. The central bank will also release another special fund of Tk500 crore to boost the startup sector. Besides, Incepta Pharmaceuticals Ltd will arrange a fund of US$ $1.0 million for the startup sector of Bangladesh, which was announced on the first day of Bangladesh Startup Connect, said BIDA chairman. Doing business will be easier for investors in Bangladesh: BIDA chief He said the interim government has emphasised youth employment and entrepreneurs’ development. As part of this, the government is working with Japan International Cooperation Agency (JICA) for the allocation funds under budgetary support to boost the startup economy. The BIDA chairman said that over 70 representatives of 25 countries arrived in Bangladesh on the occasion of the investment summit. Over 1500 startups participated in the event. Chief Adviser’s press secretary Shafiqul Alam, and Shish Haider Chowdhury, ndc, Secretary, ICT Division and Chairman, Startup Bangladesh Limited were present at the press briefing.  

The Bangladesh Economic Zones Authority (BEZA) on Monday invited foreign investors to explore opportunities at the National Special Economic Zone (NSEZ), one of the country’s most ambitious development initiatives aimed at transforming its industrial landscape. The call came as a delegation of around 60 foreign investors visited the NSEZ to assess its potential. "We want to show the world that Bangladesh is a stable country with huge investment opportunities," one of the BEZA officials said welcoming the investors from South Korea, India, China, Japan, Australia and the Netherlands at the NSEZ. The visit is part of the Bangladesh Investment Summit 2025 that kicked off in Dhaka on Monday marking a milestone event aimed at reinforcing the country’s commitment to economic progress, investment-friendly policies, and sustainable growth. The NSEZ is strategically situated beside Bay of Bengal in south-eastern Bangladesh, with transportation routes such as Dhaka-Chattogram national highway Chattogram port and airport. "For the first time, foreign investors have been brought to see the facilities in person. They have seen the opportunities in their own eyes and they are very impressed," Chief Adviser's Deputy Press Secretary Abul Kalam Azad Majumder told UNB. Govt decides to transfer 9, 467-acres land in Sonadia from BEZA to Forest Dept Attracting both domestic and foreign investment in chemical, basic steel, garments, leather products, pharmaceuticals, electronics, automobiles and agro-processing industries and promoting export-oriented and import substitute industries to support local value chains. This industrial city will also accommodate residential area, financial hub, city centre, educational institutions, tourism facilities and other amenities. To ensure sustainable industrialization, this city will comprise renewable energy solutions, environmental and social compliance management, green zones, dedicated service areas for effluent treatment and waste management. The industrial enclave is expected to boost export earnings, contribute significantly to GDP growth and serve as a model for economic zones across Bangladesh. The NSEZ has attracted approximately $19 billion worth local and foreign investment proposals. As of today, the total number of investors is about 155, predicted to establish 500 industries in the future, BEZA officials said. Dutch-Bangla Chamber signs MoU with BEZA