[🇧🇩] Monitoring Bangladesh's Economy

[Saif]

'Bangladesh Remittance Fair' to be held in NY next month

A two-day "Fourth Bangladesh Remittance Fair 2025" will be held in New York (NY) on April 19-20 to increase remittance flow from the USA to Bangladesh. The Bangladesh-USA Chamber of Commerce and Industry (BUCCI) and USA-Bangladesh Business Links will jointly organize the fair at Jackson Heights in

thefinancialexpress.com.bd

'Bangladesh Remittance Fair' to be held in NY next month
Published :
Mar 21, 2025 13:24
Updated :
Mar 21, 2025 13:24

A two-day "Fourth Bangladesh Remittance Fair 2025" will be held in New York (NY) on April 19-20 to increase remittance flow from the USA to Bangladesh.

The Bangladesh-USA Chamber of Commerce and Industry (BUCCI) and USA-Bangladesh Business Links will jointly organize the fair at Jackson Heights in New York, USA, BSS reported citing a press release on Friday.

The Bangladesh Association of Banks (BAB) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) are the organising partners of the fair.

Bangladesh Bank (BB) Governor Dr Ahsan H Mansur is scheduled to take part as the chief guest at the inauguration ceremony of the fair.

The event will bring together key stakeholders from both the public and private sectors, such as banks, mobile financial service providers, app developers, money exchange houses, and channel partners to showcase their products and services, share insights, explore opportunities, and enhance the security and efficiency of remittance channels.

The event will feature a rich programme, including demonstrations, presentations, discussions, Q&A sessions, and a Networking Dinner.

The networking sessions will see participation from the Department of Financial Services, New York State, and leading money exchange companies, providing a unique opportunity to engage directly with key industry representatives, explore potential partnerships, and stay abreast of the latest trends and innovations in the remittance sector.

Notably, a number of banks, money exchange houses, and remittance channel partners, such as Dhaka Bank PLC, Islami Bank Bangladesh PLC, and Uttara Bank PLC, had earlier participated in the fair.

Islami Bank Bangladesh PLC, National Bank Limited, and Bank Asia PLC were awarded the Top Remittance Bank Receiver Award 2024, the Top Remittance Channel Partner 2024 went to BA Express, Sunman Global Express, and Standard Express, while the Top Individual Remittance Award 2024 was given to 10 remitters at the closing and award ceremony of the "Third Bangladesh Remittance Fair-2024."​

 

[Saif]

Large industries see double-digit growth in Dec riding on RMG

Country's large-scale manufacturing sector recorded a double-digit growth of 10.37 per cent in December last year, rising from the same period in 2023, according to data released last week by the Bangladesh Bureau of Statistics (BBS). Large-scale manufacturing contributes over 11 per cent to the c

thefinancialexpress.com.bd

Large industries see double-digit growth in Dec riding on RMG
Jasim Uddin Haroon
Published :
Mar 23, 2025 00:06
Updated :
Mar 23, 2025 00:06

Country's large-scale manufacturing sector recorded a double-digit growth of 10.37 per cent in December last year, rising from the same period in 2023, according to data released last week by the Bangladesh Bureau of Statistics (BBS).

Large-scale manufacturing contributes over 11 per cent to the country's GDP and serves as a key indicator of industrial performance.

The quantum index of large manufacturing industries reached 246.58 points in December 2024, up from 223.42 in December 2023.

Of the 23 manufacturing subsectors, 14 posted growth, while seven saw declines.

Sectors that contracted during the months included tobacco products, textiles, leather, chemicals, paper, computer-related industries, and "other manufacturing" sectors.

However, the large industries registered sluggish growth earlier in the current fiscal year (FY 2024-25), with the index rising by only 3.85 per cent in July-September quarter (Q1).

The December rebound was, however, largely driven by the ready-made garments (RMG) sector that holds the largest weight in the index at 61 out of 100. Any fluctuation in RMG significantly impacts the overall manufacturing index.

Other key industries that expanded in December last included: beverages 21 per cent, food 10.11 per cent, wood and related industries 15 per cent, printing 19 per cent, electrical equipment 16 per cent, rubber 14 per cent, fabricated metals 12.73 per cent, machinery and equipment 28.88 per cent, pharmaceuticals and furniture 4.0 per cent each during the period under review.

The strong performance in manufacturing aligns with the Purchasing Managers' Index (PMI), which stood at 61.7 in December, indicating economic expansion.

Industry experts say political unrest-leading to the fall of the Awami League government-weighed on growth in the Q1 of this FY.

Mr. Anwar-ul Alam Chowdhury (Parvez), president of the Bangladesh Chamber of Industries (BCI), identified high lending rates as a major barrier to business expansion further.

The lending rate is a barrier to further expansion of business which was also associated with poor buying orders, he said.

Mr. Syed Nazrul Islam, a former leader of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and managing director of Well Dress, said that clothing orders increased after the Q1, although some orders had previously shifted to India and Pakistan.

Economists believe that the economic activity is gradually recovering, driven by a stabilised foreign exchange market and rising domestic demand.

Dr. Zahid Hussain, former lead economist at the World Bank's Dhaka office, said that the student-led uprising in mid-July caused temporary setbacks, He, however, expressed optimism about economic recovery.

"Inflation remains a challenge for industrial expansion but it is gradually easing," he said, adding that the improvement is also reflected in the country's export earnings.

The export earnings were up by 10.41 per cent to US$32.93 billion in July-February period of this FY.

Dr. M. Masrur Reaz, Chairman and CEO of Policy Exchange Bangladesh, attributed the growth in the manufacturing sector to seasonal factors and a strong rebound in RMG.

He said that with the RMG sector making up over 60 per cent of the index and growing over 16 per cent in December, it has been the key driver of overall industrial growth.

He expected continued improvements in the clothing sector in the coming months.

The economist also predicted that climate change could boost beverage production in the coming months as seen during last summer.

However, economists have warned that the high rate of inflation could dampen demand for goods and services, potentially slowing down broader economic recovery.​

 

[Saif]

Dr Yunus invites global investors to explore 'extraordinary opportunities' in Bangladesh

Ahead of the Bangladesh Investment Summit, Chief Adviser Professor Muhammad Yunus has invited Bangladesh's friends, partners, and global leaders to explore the extraordinary investment opportunities that Bangladesh has to offer. "There has never been a better moment to explore the extraordinary in

thefinancialexpress.com.bd

Dr Yunus invites global investors to explore 'extraordinary opportunities' in Bangladesh
UNB
Published :
Mar 22, 2025 10:39
Updated :
Mar 22, 2025 10:39

Ahead of the Bangladesh Investment Summit, Chief Adviser Professor Muhammad Yunus has invited Bangladesh's friends, partners, and global leaders to explore the extraordinary investment opportunities that Bangladesh has to offer.

"There has never been a better moment to explore the extraordinary investment opportunities in Bangladesh," he said, as the government is set to host the Bangladesh Investment Summit 2025 next month.

Dr Yunus said Bangladesh has undergone profound transformations with a forward-thinking investment climate.

"We are committed to ensuring a level playing field for all our investors," said the Chief Adviser in a message to global investors.

Dr Yunus said the Summit is a gateway for investors to gain more data-driven insights. "Come and witness the potential that Bangladesh holds for you. And join us in shaping the future of investment in one of the world's most dynamic economies."

The chief adviser said he is looking forward to welcoming global partners and investors to the new Bangladesh.

The Bangladesh Investment Summit 2025, hosted by the government of Bangladesh, showcases a new investment climate in Bangladesh, set for transformative investments and unmatched growth.

Global leaders, Fortune 500 executives, and industry pioneers will engage in discussions as Bangladesh redefines the future of investment in one of the world’s most dynamic markets.

The Executive Chairman of the Bangladesh Investment Development Authority (BIDA), Chowdhury Ashik Mahmud Bin Harun, will hold a press briefing on Sunday, said the Chief Adviser's Deputy Press Secretary, Abul Kalam Azad Majumder, on Friday.

Organised by BIDA, the Bangladesh Investment Summit 2025 — set to take place in Dhaka from April 7-10 — introduces the Excellence in Investment Award, a hallmark initiative celebrating investors shaping Bangladesh’s economic future, officials said.

This honour recognises enterprises for their transformative contributions in areas such as investment scale, environmental stewardship, regulatory adherence, and employment generation.​

 

[Saif]

Investment summit seeks to revive moribund FDI

The Bangladesh Investment Summit 2025 will be hosted at a critical juncture this year against the backdrop of foreign direct investment (FDI) inflows hitting a six-year low, raising concerns about the investment climate.

www.thedailystar.net

Investment summit seeks to revive moribund FDI
Will take place in Dhaka from April 7 to April 10

The Bangladesh Investment Summit 2025 will be hosted at a critical juncture this year against the backdrop of foreign direct investment (FDI) inflows hitting a six-year low, raising concerns about the investment climate.

Scheduled to take place from April 7 to April 10 at the InterContinental Dhaka, the event aims to attract global investors and highlight Bangladesh's evolving economic landscape.

Amid political uncertainty, stray incidents of labour unrest and economic challenges, the summit presents a crucial opportunity to restore investor confidence, showcase economic reforms, and position Bangladesh as a competitive investment destination.

FDI inflows dropped by 71 percent year-on-year, falling to $104.33 million in the July-September quarter of FY25, the lowest in six years, according to Bangladesh Bank.

The country's total FDI stock stood at $17.68 billion as of September 2024, with the United Kingdom, Singapore, and South Korea emerging as the top three investors.

The UK remains the leading investor, with $3.05 billion, primarily in banking, power, and pharmaceuticals. Singapore follows with $1.78 billion, while South Korea ranks third with $1.6 billion, driven by investments in manufacturing and telecommunications.

A recent survey by the Japan External Trade Organization (Jetro) 2024 highlighted policy inconsistency and bureaucratic hurdles as significant barriers, discouraging reinvestment and leading to capital outflows.

Japanese investors frequently cite complex approval processes, tax inconsistencies, and sudden policy shifts as challenges to long-term commitments.

While Bangladesh has made progress in infrastructure, logistical inefficiencies and slow project execution also continue to impact business operations.

Additionally, currency depreciation, inflationary pressures, and the rising cost of doing business have made the country less competitive compared to regional peers.

The Bangladesh Investment Summit 2025 presents an opportunity to reverse the downward trajectory of FDI inflows by presenting new investment opportunities and showcasing economic reforms and policy incentives.

More than 550 investors from 50 countries have registered to attend, alongside 2,500 local investors.

Chief Adviser Prof Muhammad Yunus is expected to inaugurate the summit on April 9, alongside top executives from multinational corporations.

Speaking at a press conference at the Foreign Service Academy in Dhaka, Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority, emphasised the government's commitment to investment-friendly policies and economic stability.

He assured investors that Bangladesh would not make false promises but would instead present an accurate and realistic picture of investment potential.

While acknowledging challenges, Chowdhury highlighted Bangladesh's strong economic growth, expanding industrial capabilities, and reform measures aimed at improving the ease of doing business.

Despite the current slowdown in FDI, Bangladesh remains a promising investment destination, offering a growing domestic market, competitive labour costs, and strategic geographic positioning, he said.

However, he acknowledged that sustaining long-term investor interest will require policy consistency, infrastructure improvements, and regulatory streamlining.

The Investment Summit 2025 is expected to serve as a catalyst for renewed investor interest, allowing global businesses to explore Bangladesh's opportunities while giving policymakers a platform to address investor concerns, he added.​

 

[Saif]

IMF loan needed to secure support from other lenders

Availing loans from the International Monetary Fund (IMF) helps to get support from other development partners, which is needed to meet resource gaps in the budget, Finance Adviser Salehuddin Ahmed said yesterday.

www.thedailystar.net

IMF loan needed to secure support from other lenders
Finance Adviser Salehuddin Ahmed says

Availing loans from the International Monetary Fund (IMF) helps to get support from other development partners, which is needed to meet resource gaps in the budget, Finance Adviser Salehuddin Ahmed said yesterday.

"If any institution does not grant a loan, other institutions raise questions about why it did not materialise," Salehuddin said.

As such, if Bangladesh does not take loans from the IMF for fear of stringent conditions, there is a possibility of losing loan opportunities from other institutions such as the World Bank, Japan International Cooperation Agency and Asian Development Bank.

Salehuddin made these remarks while replying to queries at a pre-budget discussion with members of the Economic Reporters' Forum (ERF) at the finance ministry office in Dhaka.

The fourth tranche of the IMF's $4.7 billion loan to Bangladesh was supposed to be disbursed in February. However, the IMF deferred the disbursement to June as Bangladesh could not meet prior conditions.

It is now expected that the IMF will disburse two instalments simultaneously in June.

A mission from the IMF is scheduled to visit Bangladesh next month to review the latest development of the loan programme.

At the discussion, the adviser said he was hopeful that the IMF would disburse two instalments in June.

Replying to a query, the adviser said he was hopeful that Bangladesh would be able to meet the prior conditions to avail the instalments by June.

The government has to borrow from domestic and foreign sources to meet the financing gap in the budget and this support is received from various organisations, such as the IMF, ADB and World Bank.

In recent years, it has been seen that the government utilises $10 billion to $11 billion in foreign loans to finance the budget. Of the amount, $3 billion to $4 billion is received from these institutions in the form of budgetary support.

Md Abdur Rahman Khan, chairman of the National Board of Revenue, said the upcoming budget would be business-friendly and facilitate trade. There are no plans to increase the tax burden on businesspeople, he added.

Finance Secretary Md Khairuzzaman Mozumder said the government will increase the allocation for the health, education and ICT sectors in the next budget.

Salehuddin also said the government has been working to make a separate Banking Resolution Act so that the bad banks can exit. However, it must be ensured that the depositors will get back their money.

He added that the government has no plans to form a banking commission at present.

Salehuddin added that although the burden of subsidies is already high, subsidies will continue in the agricultural sector in the next budget.

The number of beneficiaries in the social safety net will be widened in the next budget, he also said.

ERF President Doulot Akter Mala presented the ERF's budget proposals to the finance adviser. Among others, ERF General Secretary Abul Kashem was also present.​

 

[Saif]

Forex market steadies as dollar inflows go up

The country’s foreign exchange market is stabilising thanks to a surge in US dollar (USD) inflows, driven by higher remittances, stronger export earnings and tighter oversight by the central bank.

www.thedailystar.net

Forex market steadies as dollar inflows go up

The country's foreign exchange market is stabilising thanks to a surge in US dollar (USD) inflows, driven by higher remittances, stronger export earnings and tighter oversight by the central bank.

Liquidity in the forex market has improved, evident in banks' net open positions (NOP) -- the difference between their foreign currency assets and liabilities.

Banks' NOP reached $550 million as of 20 March, up from around $150 million earlier in the month, according to Bangladesh Bank data.

Over the past few months, the NOP had fluctuated between $250 million and $300 million, central bank officials said.

Industry insiders attributed the NOP increase to a rise in the inflow of the US dollar, which indicates that the foreign exchange market is increasingly gaining stability.

Bankers say remittances started to climb following the political changeover in August last year, while export growth further bolstered foreign exchange reserves.

"The forex market has stabilised in recent months due to higher dollar inflows," said Mirza Elias Uddin Ahmed, managing director and CEO of Jamuna Bank.

"Remittances have played a key role in boosting USD availability," said Ahmed.

In the first 23 days of March, remittances hit a record $2.63 billion ahead of Eid-ul-Fitr, the biggest religious festival for Muslims.

Industry insiders anticipate that the figure could reach $3 billion by the end of March -- an all-time high.

The upward trend in remittances began after the political changeover in August last year.

In September, remittances jumped 80.28 percent year-on-year to $2.4 billion, central bank data shows.

The momentum continued, with inflows of $2.39 billion in October, $2.19 billion in November, $2.63 billion in December, $2.18 billion in January and $2.52 billion in February.

According to Jamuna Bank CEO Ahmed, demand for hundi and hawala, illegal cross-border transfer systems, have dropped since authorities cracked down on those involved after the changeover. This has further funnelled remittances through formal banking channels.

"Stricter central bank monitoring has also curbed speculative trading, helping steady the market," he added.

Meanwhile, export earnings rose by 2.77 percent to $3.97 billion in February, according to the Export Promotion Bureau (EPB).

Foreign exchange reserves now stand at $20.01 billion, based on the International Monetary Fund (IMF) calculations.

The interbank exchange rate remains pegged at Tk 122 per USD -- an unofficial central bank directive.

"While banks quote rates around this midpoint, forward transactions often exceed it," Ahmed explained.

Apart from the forex market, the local currency market remains stable despite the Eid rush, according to central bank officials.

They said that except for some weak and troubled banks, the majority of banks now have excess liquidity despite significant cash withdrawal pressure ahead of the Eid festival.

The overnight call money rate, the interest on short-term interbank loans, fell to 9.95 percent on 25 March from over 10 percent a month earlier, according to central bank data, as liquidity demand eased.​

 

[Saif]

Next ADP likely to be worth Tk 2.30t

A relatively fat development budget worth Tk 2.30 trillion is likely to be prepared for the next fiscal year, too, by the interim government notwithstanding a staggeringly low execution of the outgoing ADP. By official count, only a fourth of the total annual de

thefinancialexpress.com.bd

Next ADP likely to be worth Tk 2.30t
Ought to be pruned suiting financing trend: Dr Zahid
Syful Islam
Published :
Mar 26, 2025 23:54
Updated :
Mar 26, 2025 23:54

A relatively fat development budget worth Tk 2.30 trillion is likely to be prepared for the next fiscal year, too, by the interim government notwithstanding a staggeringly low execution of the outgoing ADP.

By official count, only a fourth of the total annual development programme or ADP for the fiscal year 2024-25 had been implemented in eight months to this February. Also, its size underwent a significant pruning.

The size of the ADP in the upcoming financial year may set at Tk 2.30 trillion to meet fund demands made by different ministries and divisions, finance ministry officials said.

However, the finance officials find the new ADP outsized compared to the implementation capacity of the ministries and presume that it will also remain largely unimplemented.

The original ADP allocation for the outgoing fiscal year 2024-25 was Tk 2.65 trillion which was revised down by Tk 49 billion to Tk 2.16 trillion earlier this month following a big implementation gap.

Data show that the ADP-execution rate during the July-February period of FY25 was 24.27 per cent, 6.91-percentage-point lower than that of the same period of the past fiscal year.

The spending happens to be lowest in last 14 years, which reflects the agencies' inabilities to improve up their under-par implementation abilities.

In the same period in the previous fiscal year, the ADP-execution rate was 31.18 per cent of the total allocation, data available with the Implementation Monitoring and Evaluation Division (IMED) show.

Officials see political instability from the very beginning of the current fiscal year and an "inactive" administration following regime change as drags behind the slow implementation of the development programme.

They fear that this fiscal's ADP implementation could be one of the lowest in the country's history and the agencies may fail to spend the entire funds given to them in the revised ADP, too.

Finance Division secretary Dr Khairuzzaman Mozumder Tuesday said proposals were there to remove the less-important projects and that the government was now doing the trimming.

He aid the ADP came down from Tk 2.65 trillion to Tk 2.16 trillion in the revised budget. "Even then, there is still a lot of money which the ministries and divisions are unable to expend."

Dr Zahid Hussain, a former lead economist at World Bank's Dhaka office, thinks Tk 2.30-trillion ADP for next fiscal year will be big one considering the implementation capacity of the agencies and the trend in government revenue earnings.

"Had the government succeeded in enhancing foreign financing, the size of ADP could have been increased by raising budget deficit," he told The Financial Express.

Mr Hussain attributes low disbursement of foreign aid to non-functional administration -- evidently under the hangover of uncertainty following the turbulence associated with the changeover.

"There is US$45 billion in the pipeline but how much the implementation capacity can be increased in a year?" he asks.

The economist feels that the government needs to further lower the size of the next ADP through "considering the financing trend".​

 

[Saif]

Remittances near record $3 billion in March

The inflow was 82.46 percent higher than the same period last year, according to industry insiders.

www.thedailystar.net

Remittances near record $3 billion in March

Bangladesh received a record $2.94 billion in remittances in the first 26 days of March, driven by Eid-ul-Fitr, one of the biggest festivals for Muslims.

The inflow was 82.46 percent higher than the same period last year, according to industry insiders.

Remittance receipts are expected to surpass $3 billion by the end of the month, marking a historic high for a single month.

Apart from the Eid-related surge, the demand for hundi and hawala—illegal cross-border money transfer channels—has declined following a crackdown on operators after the political changeover, said Mirza Elias Uddin Ahmed, managing director and CEO of Jamuna Bank.

This has diverted more remittances through formal banking channels, he added.​

 

[Saif]

Forex reserve crosses $25 billion

The forex reserve in the country has crossed US $25 billion before the Eid-ul-Fitr as it was boosted by the record $2.95 billion remittance income in the first 26 days of this March. Bangladesh Bank deputy director Mohammad Ibrahim Munshi confirmed this.

en.prothomalo.com

Forex reserve crosses $25 billion
Staff Correspondent
Dhaka
Published: 28 Mar 2025, 20: 27

Dollar File photo

The forex reserve in the country has crossed US $25 billion before the Eid-ul-Fitr as it was boosted by the record $2.95 billion remittance income in the first 26 days of this March.

Bangladesh Bank deputy director Mohammad Ibrahim Munshi confirmed this.

According to the central bank, the reserve was $25.44 billion on Thursday. On the other hand, as per the calculation done using BPM-6, following the requirement of the International Monetary Fund, the amount of reserve was $20.29 billion.

The Bangladesh Bank paid $1.75 billion import bills of January and February on 9 March through Asian Clearing Union (ACU).

As a result, the actual reserve had fallen to $19.75 billion. But within just 20 days, the reserve amount increased, thanks to the remittance and export incomes.​

 

[Saif]

Bangladesh, Pakistan, and Sri Lanka sign deal to strengthen capital markets

The agreement, signed on Thursday in Colombo, aims to facilitate technology development and sharing

www.thedailystar.net

Bangladesh, Pakistan, and Sri Lanka sign deal to strengthen capital markets

Photo: DSE

The Dhaka Stock Exchange (DSE), Pakistan Stock Exchange (PSX), and Colombo Stock Exchange (CSE) have signed a tripartite memorandum of understanding (MoU) to enhance cooperation among the three bourses.

The agreement, signed on Thursday in Colombo, aims to facilitate technology development and sharing, human resource collaboration, product development, regulatory coordination, investor protection, and knowledge exchange across the markets, according to a press release issued by the DSE yesterday.

The signing ceremony was attended by DSE Chairman Mominul Islam, CSE Chairman Dilshan Wirasekara, and Securities and Exchange Commission of Pakistan Chairman Akif Saeed, along with directors and senior officials from the respective institutions.

DSE Chairman Mominul Islam said, "South Asian stock exchanges—except for India—face technological and operational constraints due to their relatively small size. These limitations prevent markets with immense potential from reaching their full capacity."

"Through mutual experience-sharing and joint investments in technology, our stock exchanges can play an effective role in developing strong and efficient capital markets in their respective countries," he added.

As part of the event, the DSE chairman participated in a panel discussion titled "Navigating Frontier Capital Markets: How Evolving Market Regulation and Exchanges Foster Efficient Capital Market Development."

DSE representatives also held separate meetings with the chairman and commissioners of the Securities and Exchange Commission of Pakistan, senior executives of PSX, and officials from CSE.​

 

[Bilal9]

Very important update on US-imposed tariff on Bangladesh exports to US. Bangladesh is the first country who took the implications seriously and has started a close dialog (public and private deliberations) with the US office of Trade Representative starting in early February. So this is not a surprise to any of the Bangladeshi advisers and they are prepared.

 

[Saif]

IMF team to begin discussions Sunday on $4.7b loan tranches

The delegation from the International Monetary Fund (IMF) will start discussions on Sunday to review updated financial data before releasing the next tranches of the $4.7 billion loan. According to the Finance Division of the Ministry of Finance, the IMF team will visit Dhaka to assess the conditi

thefinancialexpress.com.bd

IMF team to begin discussions Sunday on $4.7b loan tranches
UNB
Published :
Apr 05, 2025 17:45
Updated :
Apr 05, 2025 17:45

The delegation from the International Monetary Fund (IMF) will start discussions on Sunday to review updated financial data before releasing the next tranches of the $4.7 billion loan.

According to the Finance Division of the Ministry of Finance, the IMF team will visit Dhaka to assess the conditions for releasing the fourth and fifth tranches.

The delegation will meet various government departments over the course of two weeks, starting on Sunday.

The team is expected to arrive in Dhaka this (Saturday) evening.

During their visit, IMF team members will engage with the Finance Division, National Board of Revenue (NBR), Power Division, Power Development Board, Bangladesh Energy Regulatory Commission (BERC), and the Energy and Mineral Resources Division.

The IMF team will hold a press briefing on April 17.

On both the first and last days of their visit -- April 6 and April 17 -- the IMF delegation will meet Finance Advisor Dr Salehuddin Ahmed.

Bangladesh has already received three tranches since the loan program began on January 30, 2023.

The country received $476.3 million in the first tranche on February 2, 2023, $681 million in the second tranche in December 2023, and $1.15 billion in the third tranche in June 2024.

In total, Bangladesh has received about $2.31 billion from these three tranches, leaving the fourth and fifth tranches, totalling $2.39 billion, still pending.

Meanwhile, in a pre-budget discussion with the Economic Reporters’ Forum (ERF), Finance Advisor Dr Salehuddin Ahmed emphasised the importance of the IMF loan for budgetary support.

He said the government and the IMF have agreed to release the two installments for the fiscal year 2024-25 together.

But sources indicate that there are three key obstacles preventing Bangladesh from receiving both installments of the IMF loan simultaneously: making the currency exchange rate a market-based one, raising additional revenue equal to 0.5% of GDP, and separating the revenue administration from the NBR’s revenue policy.​

 

[Saif]

NBR looking to expand the base of VAT payers

The National Board of Revenue (NBR) has taken a move to expand its Value Added Tax (VAT) base, with a view to increase revenue collection for the national exchequer. In a meeting chaired by NBR chairman Md Abdur Rahman Khan on Thursday, the field level officials of Dhaka have been asked to be more

thefinancialexpress.com.bd

NBR looking to expand the base of VAT payers
UNB
Published :
Apr 05, 2025 11:00
Updated :
Apr 05, 2025 11:00

The National Board of Revenue (NBR) has taken a move to expand its Value Added Tax (VAT) base, with a view to increase revenue collection for the national exchequer.

In a meeting chaired by NBR chairman Md Abdur Rahman Khan on Thursday, the field level officials of Dhaka have been asked to be more active and sincere for improving VAT collection keeping aside the stories of growth.

An official who was present in the meeting told UNB that the NBR chairman has instructed them to expand the base of VAT.

“I do not want to hear the word growth anymore, I want to see the expansion of VAT net,” the NBR official quoted the NBR chairman as saying.

The NBR boss also asked the officials to change their mind set regarding revenue collection.

“You have to change your attitude, otherwise there is no need to be here anymore,” he warned the officials who were present in the meeting, according to the official who spoke to UNB on condition of anonymity.

The NBR chairman also assured that the good performers will be awarded, although he expressed his depression regarding the poor performance of the VAT wing.

“We are unable to show any good performance till now in VAT collection, you have to conduct combing drives to find new VAT payers, you have to work as the whole nation is depending on the NBR,” he told the meeting.

Abdur Rahman Khan, giving example of people’s eagerness to pay taxes during the 1/11 period, said that at that time people were very much enthusiastic to pay taxes.

“We have to handle the situation like that,” he said.

He also asked the officials not to harass the compliant VAT payers.

Earlier on Monday, while holding a pre-budget meeting with the Economic Reporters’ Forum (ERF), the NBR chairman had said that he had already instructed his VAT officials to conduct combing drives in a small area first to make all business people pay their VAT.

“No one will be left out from this drive, each and every shop owners will pay their applicable VAT, there will be no discrimination in this regard,” he said.

He said that the NBR is moving towards that direction.

The government on January 9 had issued the "Value Added Tax and Supplementary Duty (Amendment) Ordinance, 2025" and "The Excises and Salt Act (Amendment) Ordinance, 2025" imposing increased VAT rate on more than hundreds of different kinds of items aiming to strengthen the country's economic base.

But later, facing strong protest and criticism the NBR has issued several notifications by re-fixing the rates of VAT, Supplementary Duty and Excise Duty on a number goods and services, which were increased on January 9.

Now the NBR wants to impose a single, flat rate of VAT for all goods and services in the country, if the business people agree to that.

The NBR chairman has already said that the VAT is currently mired in total indiscipline.

He said that if input VAT credit and standard VAT rate can be imposed properly, then for many business entities the rate would be less than one percent.

He mentioned that for a long time the VAT Law has been distorted. In this connection he said that the new VAT Law was introduced in 2012 which was amended in 2019 after some major distortion.

He said that the power of VAT was accounting based and invoice based, it has been destroyed. As a result it is not growing right now, the main strength of VAT has been uprooted.

“We want to bring discipline in VAT,” he said in the pre-budget meeting with the ERF on Monday.​

 

[Saif]

https://www.thedailystar.net/business/news/global-investors-set-attend-investment-summit-amid-fdi-concerns-3864206

Global investors set to attend investment summit amid FDI concerns
The event is scheduled to begin in Bangladesh on April 7

The Bangladesh Investment Summit 2025 is set to begin at the InterContinental Dhaka on April 7, taking place at a critical juncture when foreign direct investment (FDI) inflows have plunged to a six-year low, raising concerns about the country's investment climate.

Chief Adviser Prof Muhammad Yunus, in a message to global partners, extended a warm invitation to the summit, calling it an opportune moment to explore Bangladesh's investment potential.

"My friends, partners, and distinguished global leaders from around the world, it is my honour and pleasure to warmly invite you to the Bangladesh Investment Summit 2025," Yunus said.

He highlighted the country's recent economic transformations, driven by progressive investment policies, and reaffirmed the government's commitment to ensuring a level playing field for all investors.

"Bangladesh today stands out with its defining strengths -- solid economic fundamentals, globally competitive resources, and one of the highest returns on investment in the region.

"This summit serves as your gateway to data-driven insights into Bangladesh's most promising sectors. Join us and witness firsthand the immense opportunities our nation holds. Partner with us in shaping the future of one of the world's most dynamic economies."

Scheduled to run from April 7 to April 10, the summit aims to draw attention from global investors and underscore Bangladesh's evolving economic landscape.

More than 550 foreign investors from 50 countries have registered to attend, alongside 2,500 local participants.

Against this backdrop of political uncertainty, isolated incidents of labour unrest, and broader economic challenges, the summit is seen as a crucial platform to rebuild investor confidence, highlight economic reforms, and position Bangladesh as a competitive investment destination.

According to the Bangladesh Bank, FDI inflows declined by 71 percent year-on-year in the July–September quarter of FY25, dropping to $104.33 million -- the lowest in six years.

The country's total FDI stock stood at $17.68 billion as of September 2024, with the United Kingdom, Singapore, and South Korea emerging as the top three investors.

The UK leads the way with $3.05 billion -- primarily invested in banking, power, and pharmaceuticals. Singapore follows with $1.78 billion, and South Korea ranks third with $1.6 billion, driven by investments in manufacturing and telecommunications.

Many high-ranking officials and dignitaries are expected to take part in the summit, according to the Bangladesh Investment Development Authority (Bida), including Óscar García Maceiras, CEO of Inditex, Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, Kyeongsu Lee, vice-president of Samsung Construction and Trading Corporation, Jon Omund Revhaug, executive vice-president and head of Telenor Asia, and Han Jun-seokt, CEO of Giordano Korea.

Baroness Rosie Winterton of Doncaster, DBE, the UK's Trade Envoy to Bangladesh, Jarno Syrjälä, under-secretary of state for international trade at the Ministry for Foreign Affairs of Finland, and Mike Orgill, senior director, public policy and government relations, APAC, Uber are also expected to feature.

At a press briefing held at the Foreign Service Academy in Dhaka on March 23, Ashik Chowdhury, executive chairman of the Bida, reaffirmed the government's commitment to fostering an investment environment anchored in economic stability and policy transparency.

He admitted that concerns persist, ranging from policy unpredictability to infrastructure bottlenecks. However, he underscored that Bangladesh's resilient economic growth, diverse industrial base, and ongoing reform measures signal a promising future for long-term investors.

Chowdhury also stressed that policy consistency, infrastructure development, and regulatory simplification will be critical in ensuring sustained investor confidence.

The summit will officially be inaugurated on April 9 by the chief adviser, alongside senior executives from multinational corporations.

The Bida hopes that the event will act as a turning point for investor sentiment, offering a platform to showcase the country's progress while allowing policymakers to engage directly with international stakeholders.​

 

[Saif]

https://www.thedailystar.net/business/economy/news/rising-costs-erode-business-competitiveness-3864336

Rising costs erode business competitiveness

Bangladesh, long regarded as a cost-competitive destination and once hailed as the next Asian tiger, is now grappling with mounting pressure as the cost of doing business is rising sharply across key sectors.

What was once considered the country's strongest advantage – a cheap labour pool -- is now being undermined by persistent infrastructural weaknesses, policy unpredictability, and rising input costs.

The World Bank's latest assessment and regional business surveys reveal that while labour costs in Bangladesh remain comparatively lower than in Vietnam and India, the total cost structure -- encompassing logistics, energy, financing, and regulatory compliance -- has become increasingly unfavourable.

The issue has once again come to the spotlight, becoming highly relevant as the US government has raised the tariff on Bangladeshi products to 37 percent from around 15 percent.

Experts believe that shipments of Bangladeshi goods will experience a significant setback, with the possibility of a decline in exports to the US market due to the reduction in competitiveness.

The new US tariff on Bangladeshi products has created uncertainty, which is not helpful for a developing country like Bangladesh.

According to the Comprehensive Report on the Logistics Sector of Bangladesh, prepared by the Economic Relations Division of the Bangladesh government, logistics alone account for 15-20 percent of production expenses, significantly higher than Vietnam's 9-11 percent.

This sharp gap is mainly attributed to poor road infrastructure, congestion at major ports such as Chattogram, and outdated logistical facilities.

In contrast, Vietnam's investment in deep-sea ports and modern transport networks has helped reduce delivery times and lower logistics costs, boosting its competitiveness.

Energy is another major hurdle.

Bangladesh's reliance on expensive imported liquefied natural gas (LNG) and furnace oil has exposed businesses to volatile and elevated electricity prices.

Vietnam and India, by comparison, have successfully expanded renewable energy capacity and secured stable, long-term energy supplies, reducing production uncertainty.

Cambodia, despite its economy being smaller, benefits from affordable hydropower imports from its neighbours.

The situation is further aggravated by the rising cost of finance.

The recent adoption of the SMART interest rate regime has driven business lending rates above 13 percent.

In comparison, Vietnamese firms enjoy borrowing rates between 7 to 9 percent, while India's recent monetary easing has brought small and medium enterprise lending rates to around 8 to 10 percent.

Policy inconsistency is also becoming a serious impediment.

Frequent changes to tariff structures, regulatory delays, and a lack of predictability in key business policies have diminished confidence among both foreign and domestic investors.

By contrast, Vietnam and Cambodia have pursued stable, investment-friendly regulatory environments.

A comparative study by the Policy Research Institute (PRI), titled "Vietnam's Superb Export Performance: Lessons for Bangladesh" and conducted in 2021, shows that Vietnam now attracts nearly $27 billion in annual foreign direct investment (FDI).

Meanwhile, Bangladesh struggles to reach even $3 billion.

Even Cambodia, with a far smaller economy, performs better than Bangladesh in FDI inflows per capita.

Selim Raihan, executive director of the South Asian Network on Economic Modeling, observed that Bangladesh was caught in a web of deep-rooted structural problems.

"We are stuck in several fundamental areas," he said. "Logistics, business finance, and the high cost of capital have become significant constraints. Our only sustained advantage has been low labour costs -- and even that is now under threat."

Raihan warned that unless Bangladesh addresses its critical weaknesses in infrastructure, port management, business finance, and skills development, the country's ambitions to diversify beyond ready-made garments would remain elusive.

Raihan said Bangladesh urgently needs policy reforms, robust infrastructure development, and skilled workforce training to enhance its export competitiveness.

It is essential to formulate supportive policies to attract foreign investment and expedite the implementation of free trade agreements (FTAs), he said.

"Efforts should also be undertaken to reduce tariffs and diversify exports. Active participation in bilateral, multilateral, and regional cooperation is crucial for global trade," he said.

He emphasised that immediate initiatives were vital to addressing upcoming challenges following Bangladesh's graduation from least developed country (LDC) status.

M Masrur Reaz, chairman of Policy Exchange Bangladesh, echoed similar concerns.

"The issue is no longer confined to the garment sector. The entire business environment is under pressure due to high costs and structural inefficiencies," he said.

"Geopolitical shifts, rising protectionism, and automation are reshaping global value chains. Countries with stronger fundamentals are taking advantage of this transition, while Bangladesh is falling behind," he said.

Reaz underlined the urgent need for reforms to enhance trade facilitation, modernise logistics, strengthen infrastructure, and build human capital.

"Without timely and coordinated actions, Bangladesh's position as a competitive manufacturing and export hub will continue to weaken," he said.

Adding to these concerns, Asif Ibrahim, a leading exporter of the readymade garments sector, said Bangladesh's exports to the US would face challenges following the hiking of the tariff on imports from Bangladesh.

"This tariff will be a significant burden for Bangladesh's overall exports to the United States, especially when some of the countries that Bangladesh compete with for US market share have been imposed with lesser tariffs," Ibrahim said, referring to India.

He urged policymakers to address this challenge on an urgent basis by reducing import tariff of the main export items of the US to Bangladesh.

"This is crucial for protecting Bangladesh's long-term trade interests and for ensuring sustained economic growth," he added.

With the upcoming LDC graduation in 2026, Bangladesh's competitiveness will be tested further as preferential trade treatments begin to phase out.

Without significant reforms, the rising cost of doing business could become the biggest obstacle to Bangladesh's future growth.​

 

[Saif]

Trade deficit dropped by $632m in eight months as exports grow more than imports

Bangladesh’s trade deficit continues to decline in the 2024-25 financial year (FY25) as export growth surpasses import expansion. The deficit fell by 4.41 per cent in the first eight months of FY25. The July-February period of the fiscal saw a year-on-year decrease of $632 million, accordin

thefinancialexpress.com.bd

Trade deficit dropped by $632m in eight months as exports grow more than imports
Published :
Apr 06, 2025 23:51
Updated :
Apr 06, 2025 23:51

Bangladesh’s trade deficit continues to decline in the 2024-25 financial year (FY25) as export growth surpasses import expansion.

The deficit fell by 4.41 per cent in the first eight months of FY25.

The July-February period of the fiscal saw a year-on-year decrease of $632 million, according to the latest Bangladesh Bank data released on Sunday.

The central bank said the trade deficit in the FY25 from July to February stood at $13.70 billion from $14.32 billion in the same period of the previous fiscal year.

Exports grew by 9.10 per cent in the first eight months of the current fiscal year and amounted to $30 billion, up from $27.54 billion in the same period last year.

On the other hand, imports rose by 4.5 per cent and in the current fiscal stood at $43.73 billion from $41.87 billion in the previous fiscal.

An analysis shows that the trade deficit has narrowed due to the increase in imports along with exports.

According to the balance of payments data, the current account deficit has declined by 68.90 percent in the first eight months.

The current account deficit during the period stood at $1.27 billion, down from $4.7 billion in the same period of the previous fiscal year.

Again, in the July-February period of the current fiscal year, the financial account stood at $1.42 billion, up from $654 million in the same period last year.

That means an increase in the surplus of over 116 per cent.

Former World Bank chief economist for Bangladesh Zahid Hussain told bdnews24.com, “The fiscal balance has improved a bit from before. Remittances topped $3 billion in March. It is expected that the balance of payments in March will be better than this month."​

 

[Saif]

Gross foreign currency reserves increase to $25.63b

Foreign currency reserves have crossed the US$25.6 billion mark at the end of March thanks to a record inflow of remittances this month. The country’s gross reserves have risen to $25.63 billion, according to data released by the Bangladesh Bank (BB) on Sunday. The surge came after a signif

thefinancialexpress.com.bd

Gross foreign currency reserves increase to $25.63b
FE Online Desk
Published :
Apr 06, 2025 20:10
Updated :
Apr 06, 2025 20:10

Foreign currency reserves have crossed the US$25.6 billion mark at the end of March thanks to a record inflow of remittances this month.

The country’s gross reserves have risen to $25.63 billion, according to data released by the Bangladesh Bank (BB) on Sunday.

The surge came after a significant increase in remittance inflows, which reached $3.29 billion in March, the highest for any month in the country’s history, reports BSS.

However, as per the International Monetary Fund (IMF) methodology under the Balance of Payments and International Investment Position Manual (BPM6), Bangladesh’s net reserves currently stand at $20.46 billion.​

 

[Saif]

IMF notes some progresses on BD economic front

Some positive notes in the latest IMF review of Bangladesh's economic situation raise hope in government high-ups for release of a stalled loan tranche together with the next one by June. "We are optimistic," Finance Adviser Dr Sale

thefinancialexpress.com.bd

IMF notes some progresses on BD economic front
Govt expects two loan tranches' release by June
FE Report
Published :
Apr 06, 2025 23:58
Updated :
Apr 06, 2025 23:58

Some positive notes in the latest IMF review of Bangladesh's economic situation raise hope in government high-ups for release of a stalled loan tranche together with the next one by June.

"We are optimistic," Finance Adviser Dr Salehuddin Ahmed told reporters when asked whether he remains hopeful about receiving the fourth installment of the US$4.7-billion credit after he had a meeting with the visiting IMF team members Sunday at the secretariat.

He said the International Monetary Fund (IMF) is primarily concerned about Bangladesh's low revenue generation.

"The main focus of today's (Sunday) discussion was on how much revenue can be generated, the size of the upcoming budget, and the expected deficit," he told the reporters.

He said making a law to deal with non-performing loans and related issues also came up for consultation.

Dr Ahmed stressed the need for continuing improving governance in the banking sector.

Asked wherein the IMF's emphasis lies regarding the disbursement of the fourth and fifth tranches of its conditional package loan, the finance adviser said, "The key issues are increasing tax revenue, stabilising the foreign-exchange rate, and reducing the budget deficit."

To another question, he said both the exchange rate and foreign-exchange reserves were discussed under the review of the country's macroeconomic health.

The adviser quoted the IMF team as saying that they would return to Washington, review the situation, and then give their opinion.

"We are scheduled to meet again on April 19, and a review meeting is expected around May-June," Dr Ahmed told the reporters.

He said the final decision regarding the loan would be made after that review. "They will provide recommendations based on their assessment."

In response to a question about IMF views on the country's economic situation under the current interim government, Dr Ahmed said Bangladesh's economy is currently stable and heading in the right direction.

Asked whether the IMF was demanding sacrifices or offering flexibility, he said, "We are doing what is necessary for us. We have already shown our good intentions. Now, it's their turn to demonstrate goodwill."

The custodian of exchequer feels reforms are essential regardless of IMF support.

"We must take action-not because the IMF says so-but because it's vital for our economy. We need to reform the banking sector, address bad loans, and boost revenue generation. These are fundamental things we have to do anyway."

On the revenue sector, Dr Ahmed said there are revenue leakages that need to be addressed. "The tax-to-GDP ratio must improve. The tax net has to be expanded. Many people file returns declaring zero income, despite having earnings. This practice must be curtailed."

Quoting the visiting team he said Nepal and Sri Lanka perform better than Bangladesh does in terms of tax-to-GDP ratios.

To a query on introduction of a single VAT rate, the finance adviser said, "We will try to move toward a single rate, but it cannot be implemented right this moment."

Meanwhile, the International Monetary Fund team, in another meeting on the day with the central bank of Bangladesh, noted that the existing managed floating exchange rate still remained a concern to the IMF and suggested that the regulator go for market-driven exchange system, meeting sources said.

Seeking anonymity, a Bangladesh Bank (BB) official said the IMF representatives in the meeting hailed various macroeconomic progresses in terms of boosting NIR or net international reserves and modernisation of monetary-policy framework.

The central banker, who was present at the parleys, said the exchange rate is still managed floating one which needs to be flexible and market-centric--one of the major lending conditions set by the global lender. The BB official said the IMF representatives observed that the economic growth started rebounding and the inflationary pressure easing. Under such circumstances, they said, the banking regulator can consider further flexibility in exchange rate and cutting down the policy rate (now 10 per cent).

In response, the sources said, BB Governor Dr Ahsan H. Mansur said the inflationary burden keeps dropping because of various prudent policy interventions and the exchange rate remains stable for the last few months.

"Once the inflation comes down to our projected level in the coming months, we would probably consider more exchange-rate flexibility and adjustment of the policy rate," the governor was quoted as saying.

Simultaneously, the IMF team members enquired about the current state of the liquidity crisis-hit commercial banks and their revival strategy.

Earlier, the IMF had deferred the release of the fourth tranche of the loan until June instead of March as Bangladesh could not meet some preconditions.

As per the latest developments, the IMF might release both the fourth and fifth together in June, which could amount to more than $1.0 billion, upon fulfilling conditions.​

 

[Saif]

NBR's reluctance to comply with IMF

The National Board of Revenue's (NBR's) flat refusal to go by the recipe the International Monetary Fund (IMF) advanced for the Bangladesh tax authority to pursue a revised target for collection of an additional amount of revenue of Tk570 billion for the fiscal year 2025-26 is evidently a departure

thefinancialexpress.com.bd

NBR's reluctance to comply with IMF
FE
Published :
Apr 09, 2025 22:51
Updated :
Apr 09, 2025 22:51

The National Board of Revenue's (NBR's) flat refusal to go by the recipe the International Monetary Fund (IMF) advanced for the Bangladesh tax authority to pursue a revised target for collection of an additional amount of revenue of Tk570 billion for the fiscal year 2025-26 is evidently a departure from its traditional soft stance. Although the NBR hopes that the intent of non-compliance expressed in a meeting between it and a visiting IMF team would not stand in the way of the latter's release of fourth and fifth tranches of $4.7-billion loan package, there is no certainty of this happening. The release of the fourth tranche has been delayed because of non-fulfilment of certain conditions. How the matter would shape is likely to depend on the outcome of the negotiations in second round of meeting between them held yesterday.

The NBR reposes its hope on policy changes and implementation of the existing laws for improvement in its performance but in the first meeting with IMF, it could not brief the latter of the transformative programmes for tax collection. Now the important point here is if this can be convincingly presented for the IMF consideration, will it be enough for the multilateral organisation to relax pressure on the NBR to raise the tax collection to its prescribed level? The policy framework has so long remained quaint and ineffective leaving much to be desired. One of the most important aspects is the tax-GDP ratio which is one of the lowest in the world and even in the South Asian region. In 2024, this ratio was a meagre 7.4 per cent and to everyone's concern, it has been declining over the recent years. Not only the IMF but the well-meaning citizens of this country has long been urging for expanding the tax net and raising the tax-GDP ratio.

Sure enough, the NBR cannot defend its performance. No matter under which regimes ---autocrat or pro-people---the tax authority runs the revenue operatives, at the end of the day the state's incomes are indicative of its economic health and source of the country's development finance and overall progress. The IMF's insistence that the NBR raise the tax-GDP ratio from the current 7.4 to 7.9 per cent is not at all misplaced. In the next fiscal year, this ratio should be pushed to 9.0 per cent, according to the IMF. Does it prove to be a herculean job for the NBR? If the unearned money accumulated by the likes of ACC's Motiur Rahman, former IGP Benazir Ahmed and other corrupt elements ---both in civil, judicial and military services---not excluding the NBR, are taken into account, it exposes the huge revenue those staggering figures would generate had the money been in regular circulation.

Now that the misappropriation of that outrageous scale cannot be expected, closer monitoring of business transaction, government procurement, various public expenditures etc., should help identify tax dodgers and undervalued income sources, undue tax exemptions and other such irregularities and malpractices to expand the tax bases of both individual and corporate taxpayers. When digitisation has made information available, even the cash receipts and cashless transactions can be tracked down with the help of electronic weighing scale, barcode scanner and label scale etc. A concerted campaign for everyone to keep the record straight can certainly improve the regime of revenue income.​

 

[Saif]

Bangladesh must diversify exportable products, markets; reform tariff structure: Hoe Yun Jeong

Asian Development Bank (ADB) Country Director for Bangladesh Hoe Yun Jeong on Wednesday said that Bangladesh must diversify its products and markets in the medium- and long-term perspective to brave the impacts of the US reciprocal tariff. “There are possible ways to mitigate the potential d

thefinancialexpress.com.bd

Bangladesh must diversify exportable products, markets; reform tariff structure: Hoe Yun Jeong
Published :
Apr 09, 2025 19:08
Updated :
Apr 09, 2025 19:08

Asian Development Bank (ADB) Country Director for Bangladesh Hoe Yun Jeong on Wednesday said that Bangladesh must diversify its products and markets in the medium- and long-term perspective to brave the impacts of the US reciprocal tariff.

“There are possible ways to mitigate the potential downfall. Yes, Bangladesh needs to consider proactively engaging and negotiating with the US while this has already begun,” he said.

The ADB Country Director was responding to queries of reporters during the launching of the Bangladesh chapter of the ADB’s latest report, the Asian Development Outlook (ADO), April, 2025 held at its Bangladesh Resident Mission office in the capital’s Agargaon area, reports BSS.

The United States has already announced a 37 percent tariff on imports from Bangladesh as part of President Donald Trump’s sweeping new “Reciprocal Tariffs” policy.

According to a chart published by the White House, the US government claims Bangladesh effectively imposes a 74 percent tariff on American goods. In response, a 37 percent “discounted reciprocal tariff” will now be levied on Bangladeshi products entering the US market.

In response to such move, Chief Adviser Professor Muhammad Yunus has already sent a letter to US President Donald Trump requesting him to postpone the application of a 37 percent tariff on Bangladeshi products in the US market.

In the letter, Prof Yunus requested US President Donald J Trump to postpone the application of US reciprocal tariff measures on Bangladesh for three months to allow the interim government to smoothly implement its initiative to substantially increase US exports to Bangladesh.

Besides, Commerce Adviser Sk. Bashir Uddin also sent a letter to USTR stating that the government would facilitate the export of 100 more products to Bangladesh at zero tariff to reduce the trade deficit with the United States.

The ADB Country Director said that negotiating with the US is important and also a short-term measure, but more important is that Bangladesh must diversify its markets and products for exports.

Going forward, he said Bangladesh can also take the opportunity to rationalize its own import tariff structure and reform its non-tariff barriers considering its tariff regime.

He said, “These types of tariff reforms are applied not only to the US but also to other countries.”

The ADB Country Director went on saying, “So, these are the broad measures that the government of Bangladesh needs to take into account as potential mitigation for US tariff,” he added.

Jeong also noted that it is too early to tell about the exact scale of impacts on the Bangladesh economy by the US tariff.

“We’ll continue to conduct analytical work on the impact and there will be further provided in July ADO update,” he added.

Acknowledging that Bangladesh is facing multiple economic challenges, the ADB Country Director told another questioner that the most urgent challenge might be the persistently high inflation, which erodes purchasing power and discourages investment.

“In our view, tackling high inflation rate will be a tough policy agenda going forward,” Jeong said, adding that the country also needs to address supply constraints as high inflation is also related to supply side disruptions.

“To address such issues, the government needs to improve supply chain, reduce logistics cost and invest in energy resources,” he added.​