AGP Executive Report

Bangladesh Bank & Banking Stability: Bangladesh Bank injected another Tk 2,500 crore emergency liquidity into Islami Bank, taking direct board control after the central bank dissolved the lender’s board amid liquidity pressure; the ABB says the move is timely to restore confidence. Digital Trade & Exports: BB eased rules for B2C online exports, letting small shipments up to $5,000 go through global marketplaces like Amazon/eBay with relaxed EXP requirements up to $1,000, while keeping transactions routed via authorised bank branches. FX & Reserves: Foreign exchange reserves rose to $35.63b. Budget Watch: Civil society and economists warn FY27 success depends on implementation, with concerns over weak fiscal foundations and inadequate support for the disadvantaged and persons with disabilities. RMG Snapshot: Net RMG exports fell to $5.64b in Q3 (Jan–Mar FY26). Gold & Markets: Gold prices jumped again; 22-carat now Tk 2,30,422 per bhari. Entrepreneurship & SME: Prime Bank signed a partnership with Galito’s Bangladesh; Shahjalal Islami Bank wrapped an EDP under SICIP, funding new entrepreneurs.

Banking Turmoil & Liquidity: Bangladesh Bank passed another Tk 2,500cr emergency liquidity support to Islami Bank and took board control after dissolving the entire board, with interim in-charge Mohammad Zahir Hossain urging depositors to keep transactions going while a neutral five-member board is formed. Budget Watch: Parliament approved a Tk 561.17bn supplementary budget for FY26, while economists warned the FY27 budget’s macro base and implementation capacity remain weak and inflation risks are high. Business Deregulation Push: Govt formed a high-level committee to simplify industrial licensing and approvals, aiming to cut bottlenecks and speed provisional clearances for new factories. Food & Farm Storage: Agriculture Minister said 2,000 mini cold storages will be set up nationwide in 1-2 years to reduce post-harvest losses and stabilize farmers’ prices. Family Card Governance: Finance Minister ordered influence-free implementation of the Family Card programme and said an impact assessment will track whether allowances improve health and education outcomes. Trade & Commodities: Jute faces export pressure from low-cost synthetics, with the minister citing weak high-value diversification and branding; meanwhile gold prices in Bangladesh jumped again as BAJUS revised 22-carat rates. Regional Markets: Oil prices slid globally after a US-Iran framework deal on reopening the Strait of Hormuz, lifting risk sentiment and supporting market rallies. Border Incident: BSF returned 12 stranded people after a 78-hour standoff at Kushtia’s border.

Bangladesh Budget Watch: The Finance Division floated a plan for gradual “faceless” tax assessment and appeals to cut discretion and boost revenue collection, as the government targets Tk 9.38 lakh crore for FY27 and leans on NBR to raise Tk 6.04 lakh crore. Tax Policy Shift: A proposed Finance Bill change would treat taxes deducted at source on NSC and export cash incentives as advance tax, potentially raising liabilities from July 1 and ending some concession benefits. Banking Stability: Bangladesh Bank dissolved the full board of Islami Bank Bangladesh PLC and appointed an administrator, while also providing Tk 2,500cr emergency liquidity support—moves aimed at protecting depositors amid liquidity stress. Remittance Incentives: Banks are still waiting on over Tk 5,000cr in government remittance incentive reimbursements, straining liquidity and profits. Trade & Ease of Doing Business: NBR allowed ISO-accredited private labs to do chemical testing for imported goods to speed customs clearance. Energy & Regional Links: Bangladesh will receive symbolic 40MW electricity from Nepal via India starting June 15 for five months. Digital Economy Push: Telecom tax rates may be reduced every two years over the next 5–10 years, alongside nationwide 700 MHz spectrum rollout by Grameenphone. Renewables Incentives Critique: BSREA says FY27 renewable-energy tax benefits are not reaching most households, farmers and small users, largely limited to certain RESCO/RESCO-style setups. Parliament Oversight: Jatiya Sangsad formed standing committees on Finance and Law ministries, chaired by MPs from the ruling alliance. Food Security: 1.5 lakh tons of rice were distributed under OMS and FFP in FY26.

Islami Bank Crisis: Bangladesh Bank dissolved the full board of Islami Bank Bangladesh PLC, including chairman Khurshid Alam, and appointed an administrator as the lender faces a deepening liquidity squeeze; the regulator also injected Tk 2,500 crore emergency liquidity support, with clearing operations expected to resume. Banking Accountability: Bangladesh Association of Banks (BAB) urged the government to recover looted assets and prosecute willful defaulters before recapitalisation, warning that bank bailouts alone won’t restore trust. Budget & Climate: Climate activists said the proposed FY27 budget allocates only 0.76% of GDP for climate adaptation—far below needs—calling for spending of at least 3% of GDP and stronger coastal water management. Capital Market Momentum: The DSE’s DSEX jumped past 5,600 on post-budget optimism, while the CSE welcomed FY27 capital market reforms and product expansion plans. Digital & Connectivity: Grameenphone began nationwide rollout of 700 MHz spectrum, and the government targets 90% 5G coverage with 100 Mbps broadband speeds to boost jobs and freelancing. Public Health: Dengue cases rose by 135 in 24 hours, and the health minister inaugurated ICU services at 10 district hospitals. Sports & Law Enforcement: Chattogram police suspended three officers and formed an investigation after allegations of harassment involving cricketer Nayeem Hasan.

Fiscal Pressure Watch: External debt interest payments are projected to nearly double to Tk 40,300 crore by FY29, with total interest rising as the government struggles to meet overseas obligations. Tax & Revenue Moves: NBR plans to curb gold “inflated declarations” by taxing gold sale profits on a capital gains basis, with a 15% rate and higher tax on short-term sales. Budget Reality Check: Economists warn the FY27 budget leans on pre-Mideast-conflict assumptions, cutting subsidy and debt-servicing allocations despite rising costs. Digital Economy Push: The government unveiled “One Citizen-One ID-One Digital Wallet” to integrate services and expand ICT’s GDP role, alongside telecom targets for 5G and broadband. Energy & Industry Bottlenecks: Jamalpur Economic Zone faces delays as only one of 19 firms has gas connections, forcing reliance on costly LPG and backup power. Banking & Inclusion: Deposits in accounts for the extreme poor fell in Jan–Mar, even as no-frill accounts keep expanding. Sports & Public Trust: Police assault allegations against national cricketer Nayeem Hasan in Chattogram triggered investigations and suspensions. Road Safety Support: BRTA distributed Tk 77 lakh to accident victims’ families in Joypurhat and Jaipurhat.

Energy Security & Budget Priorities: Bangladesh’s medium-term recovery roadmap puts energy security first, with a push to cut import dependence via domestic gas exploration, LNG supply-chain upgrades, and renewables; the FY27 budget also earmarks over Tk 17,193 crore for energy and power development, plus a zero tax rate for solar until 2035. Business-Friendly Reforms: Finance Minister Amir Khosru says business licences and approvals will be deemed automatically granted if authorities don’t respond within seven days, aiming to speed investment through a single-window system. Capital Market & Taxes: DSE and DBA welcomed FY27 capital market proposals, while a 15% capital gains tax is set for gold, jewellery and digital currencies from next year. Trade & Diplomacy: A “Roadmap for Trade, Growth & Economic Diplomacy” conference outlines Bangladesh’s investment pitch and reform agenda for global partners. Local Governance & Integrity: DNCC administrator claims zero tolerance for tender irregularities, handing over alleged fraudsters. Public Health: 35 new dengue cases were reported overnight. Sports & Spotlight: Cricketer Nayeem Hasan alleges police assault in Chattogram; BCB calls for a thorough investigation. Regional Ties: Scholars say Bangladesh-China relations will expand further in the next 50 years.

Budget Watch: Bangladesh’s FY27 national budget (Tk 9.38 lakh crore) boosts education spending to Tk 1,36,606 crore and raises social protection via a Tk 14,500 crore Family Card push to bring 4.1 million women under the scheme, aiming for a Universal Social ID by 2030; Market & Banking: business groups back capital market reforms and free trade zones but warn borrowing costs, energy shortages and implementation gaps could hurt investment; Bangladesh Bank Governor warns “looters” won’t be allowed to live in peace amid Islami Bank stress and liquidity support plans; Energy Transition: ActionAid and JETnet-BD welcome renewable energy tax incentives, including solar duty/tax exemptions and EV battery manufacturing support; Fiscal Risks: CPD and others call the budget overly ambitious, citing revenue shortfall risks and criticism of “black money” whitening provisions; Trade & Diplomacy: Bangladesh seeks stronger trade and investment ties with China at Kunming expo, while ADB announces a US$4bn crisis package for West Asia-affected countries including Bangladesh; Business Moves: Fresh Super Mart expands with new outlets across Dhaka Metro Rail stations; Policy for Growth: Govt proposes free trade zones to cut supply-chain lead times and reduce customs duties for export-oriented operations; Social & Safety: DNCC plans modern waste management for cleaner Dhaka, and a fire at Khulna City Medical College Hospital evacuated 250 patients; Labour Global: ILO adopts the first gig-economy platform workers convention, relevant for app-based work protections worldwide.

FY27 Budget & Inclusive Growth: Finance Minister Amir Khosru says the Tk 9.38 lakh crore FY27 budget aims to bring every citizen into economic planning, with stabilisation and reforms first, then stronger growth from year three and full recovery by years four and five. Banking Stability & Fraud Crackdown: Bangladesh Bank Governor Mostaqur Rahman assured depositors of troubled banks there will be no difficulty, while warning money launderers won’t “live in peace” as the central bank tracks stolen assets. Power Sector Contract Dispute: Power Minister Tuku said the government is considering legal action over capacity-charge arrears tied to earlier private power agreements. Energy Transition Push: Officials flagged targets including 5,000MW solar by 2030, reviving BAPEX and expanding gas exploration to cut import reliance. Digital ID & Wallets: Bangladesh is advancing a “One Citizen-One ID-One Digital Wallet” plan to link identity, payments and services, positioning digital infrastructure as key to growth. Business Reaction: CPD, BCI and MCCI broadly welcomed the budget’s human development and recovery focus, but stressed implementation and banking/financing risks. Tax Relief for Essentials: The budget proposes cutting source tax on 60 essential commodities and tax concessions for dialysis filters and other medical items, easing costs for low- and middle-income groups. Local Governance: DNCC plans two shifts for cleaners, modern waste equipment and waste-to-energy generation to clean up Dhaka. Trade & Diplomacy: Bangladesh will host a “Trade, Growth & Economic Diplomacy 2026” summit in Dhaka to coordinate policy and investment priorities. Public Health & Regulation: BTCA criticised the budget for bringing nicotine pouches, HTPs and vapes under tax rules, warning it could undermine a tobacco-free Bangladesh.

Budget & Tax Overhaul: Bangladesh’s FY2026-27 national budget (Tk 9.38 lakh crore) puts tax compliance front and centre, with TIN mandatory for most new bank accounts, a phased rise in the tax-free income ceiling to Tk 3.75 lakh (then higher later), and a shift in SIM-card taxation after the proposed withdrawal of the Tk 300 SIM tax. Real Estate “Whitening” Move: The budget also revives a real-estate route to legalise undisclosed money via disclosure of the gap between actual and registered land/apartment values, with specified taxes/penalties. Telecom & Digital Push: Mobile users’ groups and operators welcomed the SIM tax withdrawal, while the government unveiled “One Citizen-One ID-One Digital Wallet” to power digital services and ICT growth. Banking Reform Debate: Former Bangladesh Bank governor Ahsan H Mansur urged immediate Bank Company Act amendments to curb family control, as business bodies warn heavy deficit financing could crowd out private credit. Remittances: Inward remittances jumped 25.83% to $1.203bn in the first 10 days of June, supporting forex stability. Trade/Regional Business: Bangladesh is the theme country at China’s Kunming China-South Asia Expo, aiming to expand exports and investment links. Border Tensions: Reports of India pushing back undocumented Bangladeshis keep fear high in border towns, with Bangladesh-India border talks highlighting illegal crossings and trafficking concerns.

Budget FY27 Launch: Bangladesh unveiled a Tk 9.38tn national budget aiming for 6.5% GDP growth and 7.5% inflation, with spending up 19% and a deficit of Tk 2.43tn (3.6% of GDP). Foreign Borrowing Plan: To plug the gap, the government plans to borrow heavily abroad, with net foreign borrowing nearly doubling versus the revised FY26 figure. Bank Funding Push: It also targets Tk 1.12tn borrowing from banks, while setting aside a Tk 40,000cr bank rescue fund and easing some central bank controls. Business & Tax Moves: Retailers are pulled into the tax net via a small advance income tax at the supply stage, and credit card approvals shift to bank boards instead of Bangladesh Bank pre-approval. Cost of Living & Consumer Relief: The budget cuts taxes/VAT on many essentials and life-saving items, with analysts watching for price swings. Health & Social Protection: Health spending nearly doubles to Tk 69,409cr, alongside a Tk 1.44 lakh cr social safety net allocation. Infrastructure & Transport: A 3,000km expressway plan and Dhaka metro expansion (six MRT lines) anchor the infrastructure drive. Trade & Industry Support: Import duty withdrawal on 51 API raw materials and tax relief for pharma inputs; semiconductor incentives extend until 2031; electronics and air-cargo logistics hubs get policy backing. Energy & Water Tech: An AI groundwater monitoring dashboard and a push for energy security sit alongside plans to manage inflation. Policy Backlash: Jamaat calls the budget “anti-people” and stages protest marches, while business bodies broadly welcome the direction but flag execution and revenue risks. Regional Linkages: PM’s China trip is expected soon, and China-South Asia Expo messaging highlights deeper regional trade and industrial cooperation.

Budget Watch: Bangladesh’s FY27 budget (Tk 9.38 lakh crore) is set to be placed in parliament today, with the BNP-led government expected to push higher spending for pay hikes, election pledges and energy subsidies, while finance minister Amir Khosru Mahmud Chowdhury also flags a push for recovery amid low growth and inflation. Economic Strategy: The government will unveil a 3R plan—Recovery & Stabilisation, Restoration, and Reconstruction for Acceleration—aiming for 8.5% growth by 2030-31. Growth Snapshot: Provisional data puts FY25 GDP growth at 4.14%, lifting per capita income to $3,020 for the first time. IMF/Financing Support: Bangladesh signed a $250m AIIB loan for economic governance and a $404m World Bank financing package for health and nutrition. Digital Payments Push: Bangladesh Bank launched the nationwide Bangla QR campaign ahead of July 1 rollout. Banking Stability: Bangladesh Bank appointed an observer to Islami Bank to protect depositors amid governance and liquidity turmoil. Trade & Industry: Patenga Container Terminal at Chittagong Port cut vessel waiting time to near zero, while the 20th Bangladesh Denim Expo opens in Dhaka under “Frontline to Future.” Energy Risk: Kaptai hydropower generation faces possible suspension as water levels fall sharply. RMG Signal: RMG exports to the US fell 11.24% in four months, adding pressure for policy support.

Bangladesh Economy Milestone: Bangladesh’s economy crossed the $500bn mark in FY25-26, with GDP growth rising to 4.14% and per capita GNI hitting $3,020 for the first time, though economists warn inflation and stability must stay the priority. Banking Governance: Bangladesh Bank appointed an observer to Islami Bank Bangladesh amid protests and political heat over the bank’s top management, as depositors continue withdrawals and bankers warn the turmoil could spill into the wider financial sector. Budget & Fiscal Strategy: The government plans a bigger foreign-aid push for FY26-27 (target $13.27bn) and is set to introduce new tax measures, including incentives for green industries and digital entrepreneurs, while also adjusting deficit financing toward more borrowing abroad. Development Finance: Bangladesh signed a $250m AIIB budget-support deal for economic management and governance, and the World Bank approved $379m loan plus $25m grant to strengthen health, nutrition and population services. Trade & Industry: Inditex’s regional chief said Bangladesh can become a top apparel sourcing hub if it improves logistics, lead times and value-added output, while ADB hosted a Dhaka seminar to connect businesses with multilateral project opportunities. Energy & Diplomacy: Russia floated the idea of a floating nuclear plant unit for Bangladesh as talks continue on diversifying energy options. Public Health & Environment: Cabinet approved UNICEF-procured vaccines worth Tk 412.71 crore, BJRI won the National Environment Award 2025, and DSCC launched a “City Inspector” pilot to boost cleanliness and dengue prevention.

Budget Watch: Former FBCCI president Mir Nasir Hossain urged a business-friendly FY2026-27 budget, warning energy security and inherited power-sector debt remain the biggest drag on investment. Central Banking & Agriculture: Bangladesh Bank launched a Tk 100b refinancing scheme for agricultural loans with low rates (capped at 8%), collateral-light options for small/marginal and women farmers, and strict rules to protect genuine borrowers. Stimulus for Rural Growth: BB’s Tk 600b stimulus earmarks Tk 100b for agriculture and rural activities, plus funds for northern agri hubs and frozen shrimp/fish exports, targeting about 2.5m jobs. Japan Energy Support: Japan will extend an emergency loan up to $312m (50b yen) with ADB co-financing to strengthen fiscal management and ensure stable energy supply. SME & Start-up Focus: The upcoming budget is set to boost SMEs, start-ups, women entrepreneurs and creative activities, with Tk 400 crore planned for start-up financing and entrepreneurship support. Banking Stability: BB formed a Tk 100b refinancing scheme and also moved to appoint administrators for five struggling NBFIs for liquidation/resolution, with priority repayment for deposits up to Tk 10 lakh. Trade & Industry Relief: Finance minister Khosru Mahmud Chowdhury signalled measures like halving source tax on local cotton purchases and cutting VAT on locally made ACs and refrigerators to ease costs and prices. RMG Pressure: BGMEA plans a “Charter of Policy Support” as garment exports keep sliding, citing LDC-graduation uncertainty and rising regional competition. Geopolitics & Labour: Bangladesh and Russia discussed expanding manpower from nearly 10,000 to 100,000 workers within a year and boosting trade in garments and pharma. Capital Market Reform: Commentaries renewed calls to fix Bangladesh’s capital market financing gap, arguing banks have become the default long-term financier.

Energy Subsidy Shock: Finance Minister Amir Khosru warned West Asia tensions could force extra Tk 42,600 crore in fuel, gas, power and fertiliser subsidies this fiscal year, citing higher import and production costs. Japan Loan for Resilience: Japan confirmed a $312m (about Tk 3,800 crore) ODA loan for economic reforms and stable energy supply, signed via ERD/JICA under the POWER ASIA initiative. Banking Confidence & Reforms: The finance minister told parliament the government is using a structured resolution framework, including deposit protection expansion, to restore trust; meanwhile Islami Bank sought Tk 10,000 crore liquidity support amid deposit withdrawals and political unrest. Capital Market Crackdown: BSEC fined individuals and institutions Tk 14.96bn over stock market irregularities, while DSE shares rallied on budget optimism but foreign investors sold Tk 161cr in May. Port Disruption Risk: Benapole land port cargo unions announced an indefinite strike from June 14, threatening import-export delays. Local Enforcement: Dhaka South warned shops without trade licences will be sealed immediately. Wildlife Action: Forest officials rescued 55 rare animals and arrested two alleged traffickers in separate drives. Digital Telecom Move: Veon proposed a strategic combination with Teletalk and interest in acquiring Nagad.

Bangladesh Bank & SME Finance: BB launched a Tk 50b revolving refinance fund for CMSMEs, with refinance at 4% and end-borrower rates capped at 9%, plus grace periods of 3–6 months to ease working-capital stress. Capital Market Oversight: BB said a key Bank Resolution Act provision on ownership return after bank mergers is “not maintainable,” recommending deletion due to large gaps in recovery prospects. Remittances: Remittance inflows stayed strong, reaching $33.63b in FY25-26 to June 7 (+18.45%), supporting foreign exchange stability. Trade & Export Risk: Commerce minister warned LDC graduation could cost about $17.5b in exports from loss of preferential access, while Bangladesh pushes new trade deals to offset the hit. Labour & Industry: Labour leaders demanded action to stop garment and factory job cuts; separate reports flagged ongoing pressure on workers and factory closures. Water & Health: Gandharbapur plant is set to supply 50 crore litres of treated water to Dhaka daily once operational; dengue admissions rose again with 65 more hospitalised in 24 hours. Labour Migration: Mauritius labour market is set to reopen as both sides fast-track an MoU for recruitment after nearly four years of closure. Regional Security: India’s West Bengal authorities claimed deporting nearly 5,000 Bangladeshis since taking office, while Bangladesh reiterated due process concerns. Rohingya Rescue: Bangladesh Coast Guard rescued 50 people, including 11 Rohingya refugees, from a suspected trafficking boat near Teknaf.

Bangladesh Bank Finance Push: BB rolled out multiple refinance schemes—Tk 10,000cr for green industries and Tk 5,000cr for CMSMEs (lending capped at 9%), plus a Tk 10,000cr revolving fund for agriculture and rural jobs—aimed at boosting investment, production and employment while tightening borrower charges. Capital Market Watch: BSEC lifted floor prices on Beximco and Islami Bank shares, while the DSE snapped a 10-session winning streak as investors booked profits ahead of the budget. Trade & Competition: Commerce Minister said the trade deficit widened to $24.16bn in FY25; meanwhile, the govt plans to strengthen the Competition Commission and consumer protection to curb market dominance. Halal & Export Diversification: Indonesia urged Bangladesh to expand halal trade beyond food into fashion, pharma, healthcare and digital, with a push to join D-8 Halal Expo 2026; Bangladesh also seeks new market access via China-South Asia Expo in Kunming. Banking Governance: BB chief outlined banking reforms (weak-bank management, NPL reduction, digitalisation) and moves to amend the Money Loan Court Act; Standard Chartered Bangladesh CEO Naser Ezaz Bijoy stepped down. Energy Readiness: Power ministry ordered working papers to make the grid safer and smarter for the nuclear era. Industry Updates: Leather sector gets export-focused support plans (bonded warehouse, compliance help), and BD Thai Food signed a deal to boost soft-drink capacity utilisation.