[🇧🇩] Monitoring Bangladesh's Economy

[Saif]

Remittance inflow rises by 33.6pc in first 27 days of July

Inflow of remittances witnessed a remarkable year-on-year growth of 33.6 per cent, reaching US$2,099 million in the first 27 days of July, according to the latest data of Bangladesh Bank (BB) issued today (Monday). During the same period last year, the country's remittance inflow was $15

thefinancialexpress.com.bd

Remittance inflow rises by 33.6pc in first 27 days of July

Published :
Jul 28, 2025 20:12
Updated :
Jul 28, 2025 20:51

Inflow of remittances witnessed a remarkable year-on-year growth of 33.6 per cent, reaching US$2,099 million in the first 27 days of July, according to the latest data of Bangladesh Bank (BB) issued today (Monday).

During the same period last year, the country's remittance inflow was $1572 million, BSS reports.

Expatriate Bangladeshis sent a record $30.33 billion in remittances in the fiscal year 2024-25 (FY25), marking the highest amount ever received in a single fiscal year in the country's history.

This figure reflects a 26.80 per cent increase compared to the $23.91 billion received in the previous fiscal year (FY24).​

 

[Saif]

Foreign debt: Bangladesh pays record $4.09b in one year

Bangladesh’s foreign debt repayment has exceeded $4 billion (400 crore dollars) for the first time. In the outgoing fiscal year (2024-25), the country paid back approximately $4.09 billion (409 crore dollars), including interest, on foreign loans. This is a record high. Never before has such...

en.prothomalo.com

Foreign debt: Bangladesh pays record $4.09b in one year
Special Correspondent Dhaka
Published: 28 Jul 2025, 14: 48

Bangladesh’s foreign debt repayment has exceeded $4 billion (400 crore dollars) for the first time.

In the outgoing fiscal year (2024-25), the country paid back approximately $4.09 billion (409 crore dollars), including interest, on foreign loans.

This is a record high. Never before has such a large sum been repaid in a single year. In the previous fiscal, repayments had amounted to $3.37 billion (337 crore).

These figures were obtained from the latest data of the Economic Relations Division (ERD) on foreign loan commitments, disbursements, and debt servicing.

Officials say that Bangladesh’s foreign debt burden is steadily increasing, posing a new challenge for the economy.

According to ERD sources, in the June-July period, Bangladesh repaid $4.0869 billion (408 crore 69 lakh dollars) in foreign loan principal and interest, meaning the country had to pay more than $340 million (34 crore dollars) on average each month.

The latest ERD report says, of the total government expenditure from July to June of the last fiscal, $2.59 billion (258 crore dollars) was paid as loan principal, and $1.49 billion (149 crore) as interest.

According to ERD sources, in the 2012-13 fiscal year, Bangladesh repaid a total of $1.1 billion (110 crore dollars) in foreign loans. Almost a decade later, in 2021-22, this amount rose to $2.01 billion (201 crore dollars). In 2022-23, it climbed to nearly $3 billion (300 crore dollars). In the just-concluded 2024-25 fiscal, Bangladesh had to repay $4.09 billion (409 crore dollars) in foreign loans, nearly a fourfold increase over the past 12 years.

Meanwhile, although foreign debt repayment has increased, both loan disbursement and loan commitments have declined.

In the first 11 months of the current fiscal, foreign loan disbursement amounted to $5.6 billion (560 crore dollars), compared to $7.02 billion (702 crore dollars) during the corresponding period of the previous fiscal.

Loan commitments in the same period amounted to $5.48 billion (548 crore dollars), while the figure was $7.92 billion (792 crore dollars) in the corresponding period last year.

In the previous fiscal, the total loan disbursement stood at $8.57 billion (857 crore dollars). Commitments stood at $8.32 billion (832 crore dollars).

The Asian Development Bank (ADB) topped the list of lenders, disbursing $2.52 billion (252 crore dollars) during the July-June period of the current fiscal year. It was followed by the World Bank and Japan. However, while funds were disbursed, India, China, and Russia made no new loan commitments in the current fiscal year.

Foreign debt repayment nearly quadrupled in a decade

Over the past several years, foreign debt repayment by Bangladesh has increased significantly.

According to ERD sources, in the 2012-13 fiscal year, Bangladesh repaid a total of $1.1 billion (110 crore dollars) in foreign loans.

Almost a decade later, in 2021-22, this amount rose to $2.01 billion (201 crore dollars).

In 2022-23, it climbed to nearly $3 billion (300 crore dollars). In the just-concluded 2024-25 fiscal, Bangladesh had to repay $4.09 billion (409 crore dollars) in foreign loans, nearly a fourfold increase over the past 12 years.

The burden of debt repayments is expected to increase further in the coming years, as repayment of principal and interest on several major projects is set to begin.

For example, repayments for loans used to build the Rooppur Nuclear Power Plant and the Third Terminal of Hazrat Shahjalal International Airport will begin soon.

These repayments are due to Japan. Meanwhile, repayments have already begun for loans used in the Karnaphuli River Tunnel and Metro Rail projects.

According to ERD officials, the pressure of foreign debt repayment is mounting as the grace periods for many large mega projects have come to an end.​

 

[Saif]

Remittance inflow rises by 31.5pc in 29 days of July

Published :
Jul 30, 2025 20:02
Updated :
Jul 30, 2025 20:03

Inflow of remittances witnessed a remarkable year-on-year growth of 31.5 percent, reaching US$2,276 million in the 29 days of July, according to the latest data of Bangladesh Bank (BB) issued.

During the same period last year, the country’s remittance inflow was $1734 million, reports BSS.

Expatriate Bangladeshis sent a record $30.33 billion in remittances in the fiscal year 2024-25 (FY25), marking the highest amount ever received in a single fiscal year in the country’s history.

This figure reflects a 26.80 percent increase compared to the $23.91 billion received in the previous fiscal year (FY24).​

 

[Saif]

Remittance inflow rises by 32pc in 30 days of July

Published :
Jul 31, 2025 19:29
Updated :
Jul 31, 2025 19:29

Inflow of remittances witnessed a remarkable year-on-year growth of 32 per cent, reaching US$2,368 million in the 30 days of July, according to the latest data of Bangladesh Bank (BB) issued.

During the same period last year, the country’s remittance inflow was $1794 million, reports BSS.

Expatriate Bangladeshis sent a record $30.33 billion in remittances in the fiscal year 2024-25 (FY25), marking the highest amount ever received in a single fiscal year in the country’s history.

This figure reflects a 26.80 percent increase compared to the $23.91 billion received in the previous fiscal year (FY24).​

 

[Saif]

BB to intervene in forex market

Bangladesh Bank (BB) will intervene in the foreign exchange market to curb volatility in the exchange rate and rebuild the country's foreign exchange reserves.

www.thedailystar.net

BB to intervene in forex market

Bangladesh Bank (BB) will intervene in the foreign exchange market to curb volatility in the exchange rate and rebuild the country's foreign exchange reserves.

This was announced in the BB's latest Monetary Policy Statement for the first half of fiscal year 2025-26.

The move came as pressure continued to mount on the taka due to persistent inflation, widening trade imbalance, and external headwinds, including a proposed tariff hike by the US.

The central bank reaffirmed its commitment to a flexible exchange rate regime but said it would adopt a more proactive approach to ensure market stability.

In May 2025, the BB transitioned to a more flexible exchange rate regime aimed at enhancing stability in the foreign exchange market.

The central bank said the regime remains essential for facilitating smoother adjustments to external imbalances, easing market pressures, and preserving reserves.

While the BB remains committed to flexibility, it retains the option to intervene to smooth out excessive fluctuations, it said.

This marks a more pragmatic shift as the central bank seeks to contain inflation and anchor market expectations without reverting to a fixed exchange rate system, it added.

The BB also acknowledged that greater exchange rate flexibility was necessary to offset the impact of declining export demand amid rising global trade tariffs.

To ensure transparency, the central bank publishes a reference exchange rate twice daily, which acts as a benchmark for market price discovery.

Its continued commitment to a flexible exchange rate regime is aimed at ensuring exchange rate stability and rebuilding reserves to better withstand external shocks, the statement added.​

 

[Saif]

Monetary policy on right track

Despite a gradual moderation of the inflation in the last six months, the central bank has decided to maintain its tight monetary stance for another six months by keeping the policy rate unchanged at 10 per cent. The announcement of the latest monetary policy statement (MPS) last week also indicate

thefinancialexpress.com.bd

Monetary policy on right track

Asjadul Kibria
Published :
Aug 03, 2025 00:01
Updated :
Aug 03, 2025 00:01

Despite a gradual moderation of the inflation in the last six months, the central bank has decided to maintain its tight monetary stance for another six months by keeping the policy rate unchanged at 10 per cent. The announcement of the latest monetary policy statement (MPS) last week also indicated that the central bank prefers to sacrifice growth for the time being by making credit flow for investment costly. The statement made it clear that the primary aim of the MPS for the first half of the current fiscal year (FY26) is 'to decelerate the rate of inflation further while maintaining exchange rate stability and strengthening financial stability.' Thus, Bangladesh Bank announced the third consecutive tight monetary stance, finding it successful to a large extent in reducing the inflationary pressure. The rate of inflation came down to 10.89 per cent in December last from 11.66 per cent in July last year. It decreased further to 8.48 per cent in June this year or at the end of FY25. Now, the latest MPS is designed to bring down the rate of inflation below 7 per cent in line with the budget target by the end of the current fiscal year. The interim government, in the national budget for FY26, has set a 5.5 per cent GDP growth target with an aim to contain the rate of inflation within a 6.5 per cent ceiling.

There is always a debate on the effectiveness of the tight monetary policy to curb inflation in developing countries like Bangladesh, mainly due to the presence of a big informal economy. Nevertheless, developing nations have started to manoeuvre the monetary policy to keep inflation in check. Though the result is mixed, monetary or credit policies in these countries have become a critical instrument to deal with inflation, as the ultimate success of the tight monetary stance is linked with the supportive fiscal and trade policies.

Bangladesh Bank started to announce half-yearly MPS around two decades ago, opening the window of policy transparency. Over the years, the MPS has been modified in line with the global standard practices. In recent years, the central bank has gradually shifted to an interest rate targeting framework from the traditional monetary targeting framework. This shift, which involves setting the key policy rate based on the desired level of interest rates in the economy, is a challenging transformation which is paying off slowly.

Under the interest rate targeting monetary policy framework, Bangladesh Bank is using the key policy rate, the repo rate to be precise, along with two supportive tools ?the Standing Lending Facility (SLF) and the Standing Deposit Facility (SDF) ? to operate the monetary policy. The MPS for the first half of the current fiscal year keep the policy rate unchanged at 10 per cent along with the SLF rate at 11.5 per cent, and the SDF rate at 8.0 per cent. It means that banks and financial institutions have to pay at least 10 per cent interest to borrow from the central bank, using treasury bonds, when there is a dearth of capital. To offset the high cost of borrowing, commercial banks have to charge higher interest rates for providing credit to their clients. The high policy rate will drive the banks to mobilise deposits from people to pay loans to traders and investors. If banks do not offer a higher rate of return, depositors will go for government securities bearing a higher rate of return. In this process, the money supply will be reduced from the market, and aggregate demand will also shrink. So, the price level will also decline.

Now, higher interest rates will make private investment more expensive as borrowing from the bank will be expensive for businesspeople. The net result will be a slowdown in private credit growth. The MPS has projected that private sector credit growth would be 7.20 per cent by the end of December this year, and it would increase modestly to 8.0 per cent at the end of the current fiscal year or June next year. With actual credit growth standing at 6.40 per cent at the end of FY25, the central bank found the projected growth of private sector credit reasonable. "Private sector credit growth is projected to be 8.0 per cent, assuming the contractionary nature of monetary policy aimed at containing persistently high inflation and lower credit demand from non-bank financial corporations," said the MPS.

Business bodies have already expressed their concern on tight monetary stance fearing further squeeze in credit flow. They said that businesses have been experiencing a tough time due to uncertain business environment, deterioration of law and order and disruption of energy supply. Now, the continuation of high interest regime will make matters worse, they argued. Though the concern expressed by the private sector is valid to some extent, it needs to be contextualised. The businesses have already adjusted with the high rate of interest and the latest MPS does not hike the policy rate further indicating that there is no need to rush for increasing the interest rates by the banks or financial institutions. Moreover, the MPS has stressed addressing the alarming level of non-performing loans through various measures. It will help the banks to improve their efficiency and may reduce the cost of lending. Private sector also needs effective intervention from the government to improve law and order so they might do their business smoothly.

Though the central bank has made it clear that it will ease the monetary stance when inflation comes down below 7 per cent, it may not be easy to do so due to various external and internal factors. Donald Trump, the president of the United States (US), has already launched a tariff war, putting global trade in turmoil. After a hectic negotiation, Trump imposed a 20 per cent additional tariff on Bangladesh, which was initially proposed at 37 per cent in April this year. Due to Trump tariffs, the cost of imports will increase, and so there will be a surge in imported inflation. The MPS also indicated this, saying that the US tariff-induced nominal depreciation of the local currency, or Taka, may further spur inflation.

The national election will be held early next year. The announcement of the date and election schedule will ease the uncertainties involving the election. At the same time, there will be a rise in the money supply during the electioneering. Candidates will spend a huge some of money to woo electorates. The increase in money supply is likely to add to inflation and make it difficult for the central bank to ease the monetary stance.​

 

[Saif]

Current account returns to surplus after 8 years

Bangladesh’s current account balance returned to surplus in the fiscal year 2024–25 for the first time in eight years, driven by a surge in remittance inflows and export earnings, alongside sluggish import growth reflecting weak investment demand...

www.newagebd.net

Current account returns to surplus after 8 years
High dollar inflows, sluggish investments drive turnaround
Mostafizur Rahman 03 August, 2025, 00:37

Bangladesh’s current account balance returned to surplus in the fiscal year 2024–25 for the first time in eight years, driven by a surge in remittance inflows and export earnings, alongside sluggish import growth reflecting weak investment demand.

According to the latest data from the Bangladesh Bank, the current account posted a surplus of $981 million in FY25, a dramatic turnaround from the $6.6 billion deficit recorded in FY24.

The last time the country saw a current account surplus in FY16, when it stood at $4.26 billion. Since then, persistent deficits continued for eight consecutive fiscal years until this reversal.

This shift comes as a major relief for the country’s external sector, which has faced persistent deficits, dwindling foreign reserves, and volatility in exchange rates over recent years.

The current account is a vital part of a country’s balance of payments (BoP), reflecting the net flow of goods, services, primary income (such as interest and dividends), and secondary income (mainly remittances).

As a result of these developments, the overall balance of payments turned to a surplus of $3.6 billion in FY25 after three straight years of deficits. In FY21, the BoP was in surplus by $9.27 billion, but then shifted into deficit in subsequent three years years - $6.6 billion deficit in FY22, $8.22 billion in FY23, and $4.3 billion in FY24.

‘This improvement was driven mainly by the return of the current account balance to a surplus from a large deficit. A surge in remittance inflows and robust export earnings in tandem with sluggish imports contributed to the reversal of the current account balance to a surplus of $981 million in FY25,’ according to BB’s new monetary policy statement.

The pressure on the external sector had broadly stabilised in FY25, supported mainly by flexibility in exchange rates, a balanced policy-mix of tight monetary policy and budget retrenchment, inflow of foreign assistances, a surge in remittance inflows, and a robust export growth, it said.

Selim Raihan, executive director of the South Asian Network on Economic Modeling (SANEM), said the improvement in the current account balance is certainly a positive development.

He noted that the surplus was primarily driven by a sharp rise in remittance inflows and export earnings, along with weak import growth. However, he cautioned that the subdued import growth is not necessarily good news, as it signals sluggish private sector investment.

He pointed out that low investment activity reflects underlying concerns in the economy, including global trade uncertainties, domestic political instability, and a deteriorating law and order situation. These factors, acting together, have discouraged businesses from investing and expanding.

Raihan said, ‘If we achieve a surplus while private investment is strong and the economy is vibrant, that would be a much more positive scenario,’ he said.

In FY25, the improvement in current account came primarily from a surge in secondary income, which includes remittances sent by Bangladeshi workers abroad.

Remittance inflows jumped by nearly 27 per cent to $30.33 billion in FY25 from $23.92 billion in the previous fiscal year.

Overall secondary income rose to $31.43 billion, up from $24.55 billion in FY24.

Export earnings also contributed positively, growing by 8.6 per cent year-on-year to reach $48.3 billion in FY25.

Although import payments increased slightly by 2.4 per cent, the trade deficit narrowed to $20.5 billion from $22.4 billion a year earlier.

Moreover, the deficit in services trade shrank to $3 billion, down from $3.81 billion in FY24, reflecting better performance in sectors like IT services and transport.

On the downside, the primary income account remained in deficit, which widened modestly to $4.97 billion in FY25 from $4.82 billion in FY24.

Despite the gains in current account and exports, the financial account of the BoP posted a smaller surplus of $3.2 billion in FY25, compared with $4.55 billion in FY24.

As of July 24, 2025, the country’s foreign exchange reserves stood at $25 billion, based on the IMF’s updated calculation methodology.​

 

[Saif]

Bangladesh economy made a turnaround: Salehuddin

Finance Adviser Dr Salehuddin Ahmed today (Monday) said that Bangladesh's economy has made a turnaround, with foreign currency reserves strengthening and traders regaining confidence. “The government is implementing several measures to give a boost to the economy,” he said while sp

thefinancialexpress.com.bd

Bangladesh economy made a turnaround: Salehuddin

Published :
Aug 04, 2025 21:02
Updated :
Aug 04, 2025 21:02

Finance Adviser Dr Salehuddin Ahmed today (Monday) said that Bangladesh's economy has made a turnaround, with foreign currency reserves strengthening and traders regaining confidence.

“The government is implementing several measures to give a boost to the economy,” he said while speaking as the chief guest at a discussion marking the ‘July Uprising Day’ at the central bank headquarters in the city, UNB reports.

Financial Institutions Division Secretary Nazma Mobarek and BB Governor Dr Ahsan H Mansur attended the discussion as the chief guest, while BB Deputy Governor Md Zakir Hossain Chowdhury presided over the programme.

Mentioning the ‘July Uprising’ as a difficult time, Salehuddin said, “We pay tribute to martyrs of the July Uprising and wish the injured a speedy recovery. Sacrifices of the students and common people will not be forgotten.”

Ahsan H Mansur said the government is working to bring down the general point to point inflation rate to 3 -5 per cent.

“Our aims are to bring inflation down to 3 to 5 per cent. I hope it is possible. We’re implementing different policy measures to this end,” he said.

He said inflation has not yet come down at the expected level, although the fiscal measures are being implemented to control domestic borrowings.

Regarding the BB’s autonomy, the governor said that they want to transform the central bank into a completely autonomous institution that will not be influenced by government machinery.

"We want to reshape focus of the BB. We'll leave the activities that are not core central banking. We'll give utmost priority to issues linked with compliance, regulations and enforcement," he added.

He said that if autonomy is implemented in the central bank, the picture of the country’s financial sector will change. “We may not stay, but we want to make some changes,” he added.​

 

[Saif]

Remittance inflow to Bangladesh soars by 29.48pc in July

Bangladesh received a record-breaking remittance of $2.48 billion in July, the first month of the 2025–26 fiscal year, marking a robust 29.48 per cent year-on-year growth. According to the latest data released by Bangladesh Bank on Saturday (3 August), the inflow translates to approxima

thefinancialexpress.com.bd

Remittance inflow to Bangladesh soars by 29.48pc in July

Published :
Aug 03, 2025 20:59
Updated :
Aug 03, 2025 20:59

Bangladesh received a record-breaking remittance of $2.48 billion in July, the first month of the 2025–26 fiscal year, marking a robust 29.48 per cent year-on-year growth.

According to the latest data released by Bangladesh Bank on Saturday (3 August), the inflow translates to approximately Tk 302.3 billion, calculated at the current exchange rate of Tk 122 per US dollar.

This notable rise stands in sharp contrast to the same period last year, when remittances totalled $1.91 billion. In July 2024, remittance inflows had dropped significantly due to calls on social media urging expatriates to halt money transfers in protest against political unrest.

Following subsequent political changes, the remittance trend has since gained strong momentum, as per a UNB report.

Bangladesh Bank officials attribute this upward trajectory to several proactive government measures, including the 2.5 per cent cash incentive on remittances, stricter regulation of informal channels such as the hundi system, and overall improvements in the formal banking infrastructure.

These efforts are not only encouraging expatriates to use legal channels but are also contributing to a healthier foreign exchange reserve.

"This follows a strong performance in June, when remittances reached $2.82 billion, marking an 11 per cent increase over the same period the previous year," said Arif Hosain Khan, Executive Director and spokesperson of Bangladesh Bank.

He noted that the previous fiscal year (FY2024–25) saw record-breaking remittance inflows, totalling $30.33 billion—a significant 27 per cent increase from the $23.74 billion received in FY2023–24—setting a new all-time high for annual remittances.

"The continuous rise in remittance inflow is bringing stability to the economy and providing much-needed relief to the country's dollar supply," Arif Hosain added.​

 

[Saif]

Sluggish investment, joblessness persist

The interim government has checked to some extent macroeconomic headwinds it inherited from the ousted Awami League regime, but failed to infuse enough dynamism into the economy to overcome sluggish private sector investment and unemployment over...

www.newagebd.net

ECONOMIC RECOVERY
Sluggish investment, joblessness persist
Shakhawat Hossain 05 August, 2025, 00:01

File photo

The interim government has checked to some extent macroeconomic headwinds it inherited from the ousted Awami League regime, but failed to infuse enough dynamism into the economy to overcome sluggish private sector investment and unemployment over the past one year.

After taking office on August 8, 2024, the interim government went for rebuilding the economy shattered by political figures and Awami League-linked businesses during the ousted regime.

The looting of banks, corruption and economic mismanagement had pushed the economy to its nadir during the authoritarian AL regime which was toppled on August 5, 2024, in a mass uprising.

Economists lauded the economic policymakers under the interim government for securing record amount of $3.6 billion budget supports from the multilateral and bilateral lenders to make up for the revenue shortfall of about 1 lakh crore and rebuilding the foreign currency reserve which had faced serious strains since the middle of 2022.

Buoyant by a record growth in remittance and a positive growth in export, the interim government has made an early turnaround in external trade position.

The current account balance improved at $432.0 million negative during the July-May period of the past financial year of FY25 from $6,116 million negative during the same period of FY24, thanks to a 26 per cent year-on-year growth in remittance and 9 per cent growth in exports until FY25.

The foreign exchange reserve reached $24.54 billion in July 10, 2025, from $21.06 billion one year back.

But the improvement in foreign exchange reserves and almost a stable currency exchange rate could not dispel shakiness by the businesses over new investment, which is evident in less credit growth in the private sector, the main driving force of the economy.

Besides, rising poverty amid elevated inflation of 9 per cent, political uncertainty, sliding law and order situation marked by frequent mob violence incidents and the new US tariff policy have caused more concerns for the interim government on way to a full-fledged macroeconomic recovery.

Finance adviser Saleuddin Ahmed on July 15 told New Age that they had been able to stop the rot that had pushed the economy to its nadir.New Age specials

‘The macroeconomic situation has been stabilised,’ he said, adding that further improvements would come in the economy later.

Referring to a 3.97 per cent growth in the gross domestic product, the weakest since 3.45 per cent recorded in the Covid pandemic-hit 2020-21 financial year, Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development, an independent research organisation, said that the economy could not be freed from a low-level of performances.

He said that the overall imports recorded 4.66 per cent growth in the July-May period of FY25 from 10.61 per cent negative growth in the same period of FY24, but that could not stop the falling imports of capital machinery and intermediate goods necessary for industrial production.

A Bangladesh Bank Update released on July 10 showed that the import of capital machinery recorded 25.56 per cent negative in the July-April period of FY25 from 23.86 per cent negative in the same period of FY24 and that of intermediate goods 8 per cent negative from 12 per cent negative.

The number of unemployed people in the country increased to 27.3 lakh in the fourth quarter of 2024 compared with that of 24 lakh in the same period of 2023, according to the Bangladesh Bureau of Statistics.

The unemployment rate climbed to 4.63 per cent in the October-December period of 2024 compared with that of 3.95 per cent in the same period of 2023.

Economists have identified a less than 7 per cent credit growth to the private sector in the July-May period of FY25 against the backdrop of disruptions to business activities in the more than one-month-long mass uprising, sliding law and order and political uncertainty for the weak economic activities.

Blaming slow and tinkered reforms in the areas of banking, revenue, fiscal and trade and investment, the economists said that the interim government had wasted a rare opportunity that came along after the July uprising to make visible and quick progresses on the economic front.

‘Unlike the political front, nobody opposes the swift reform on the economic side,’ said M Masrur Reaz, chairman and chief executive officer of the Policy Exchange Bangladesh, an independent advisory firm.

Noting the failure in bringing about positive changes in trade and investment over the past one year, he said that employment and private sector investments had been adversely impacted.

One in every four persons in the country is poor and about 3.98 crore individuals are suffering multidimensional poverty, according to the Multidimensional Poverty Index released by the General Economics Division on July 31.

An additional 30 lakh people in Bangladesh are expected to fall into extreme poverty in the current calendar year, as the rate is projected to rise from 7.7 per cent to 9.3 per cent, according to the Bangladesh Development Update released by the World Bank in April.

The WB forecast that the weak situation in the labour market would continue in the current year, while general people, particularly those vulnerable to extreme poverty, might register a decline in their income.

The discouraging outlook by the WB was disseminated just after the US president Donald Trump announced ‘reciprocal’ tariffs against its trading countries, including Bangladesh.

The US president had put the rate for Bangladesh at 35 per cent, but lowered it to 20 per cent following three rounds of tariff talks between Dhaka and Washington and Bangladesh’s moves to reduce trade deficit between the two countries. The rate initially announced by the Trump administration was 37 per cent.

In 2024, Bangladesh exported goods worth about $8.4 billion to the US, its single biggest export market. Of the export earnings, $7.34 billion accounted for readymade garments. In the year, the country imported US goods worth $2.2 billion.

Former World Bank Dhaka office chief economist Zahid Hussain said that the lowered tariff rate had created an upside opportunity for Bangladesh.

Bangladesh finds itself with a notable tariff advantage over India and nearly on an equal footing with countries like Pakistan, Vietnam, Indonesia and the Philippines, said the economist.​

 

[Saif]

The following video talks about Bangladesh's economic transformation from a bottomless basket to a fast growing economy in Asia. Enjoy!!!

 

[Saif]

undefined | The Financial Express

thefinancialexpress.com.bd

ECONOMY LIFTED FROM EDGE OF ABYSS: FINANCE ADVISER
Restoring business confidence biggest of challenges ahead

FE REPORT
Published :
Aug 07, 2025 00:45
Updated :
Aug 07, 2025 00:45

Listing challenges facing the economy ahead, like high inflation, unemployment, energy shortage and higher US tariffs, Finance Adviser Dr Salehuddin Ahmed says restoring business confidence tops it all.

On the achievements of the post-uprising interim government on the economic front so far, he told reporters Wednesday that the country's economy had been lifted from the edge of an abyss.

"One needs to have vision and acumen to see it instead of watching it from the surface," he says about the economic recovery process.

"There were very precarious challenges before the interim government when it took office and now the country could come to a place of comfort," he adds.

The finance adviser was talking to the newsmen after two meetings of the Advisers' Council Committee on Economic Affairs and Advisers' Council Committee on Government Purchase at Bangladesh Secretariat in the capital.

"But, of course, challenges are there. We have inflation, unemployment, energy, and tariff issues. And the biggest challenge is to restore the confidence of businesspeople and to get trade and commerce moving a little faster, which now has slowed," said Mr Ahmed.

Replying to a query whether inflation has come down to a comfortable level, the Finance Adviser said it would take some more time.

"Inflation is not like that, we pulled the horse by the reins. If you want to ride the horse, you have to pull your head up. Inflation is not like that, we reduced everything in one day. It is decreasing, but non-food inflation is a bit challenging for us."

Regarding budget deficit -- a perennial problem many attribute to lapses and loopholes in revenue-and tax-collection systems -- Mr Ahmed said according to provisional estimation the deficit will be 3.6 per cent which the government wanted to keep within 4.5 per cent.

To a query on reforms, he said some reforms had already been done while mid-term and long-term reforms like implementation of bank resolution, reforms linked to capital market, and amendment of the ordinance on the National Board of Revenue, would take time, preferably to be completed by December next.

The economic pointsman under the interim government of Bangladesh thinks it could have been further better had the United States lowered the reciprocal tariff further. Regarding the 20-percent tariff he said: "This is not bad -- if you compare with other countries, then Bangladesh is not in a bad position."

Asked whether Bangladesh will seek further tariff cut, the adviser indicated that the government would continue negotiation with the US aiming to further lower the tariff rate.​

 

[Saif]

Remittance inflow rises by 81.6pc in 5-day of August

Inflow of remittances witnessed a remarkable year-on-year growth of 81.6 percent, reaching US$328 million in the first five days of August, according to the latest data of Bangladesh Bank (BB) issued. During the same period last year, the country’s remittance inflow was $181 million, reports

thefinancialexpress.com.bd

Remittance inflow rises by 81.6pc in 5-day of August

Published :
Aug 06, 2025 18:05
Updated :
Aug 06, 2025 18:05

Inflow of remittances witnessed a remarkable year-on-year growth of 81.6 percent, reaching US$328 million in the first five days of August, according to the latest data of Bangladesh Bank (BB) issued.

During the same period last year, the country’s remittance inflow was $181 million, reports BSS.

During the July 2025-05 August 2025 of the current fiscal year, expatriates have sent remittances of $2,806 million, which was only $2094 million during the same period of the previous fiscal year.

Accordingly, remittances have increased by 33.9 percent.

Expatriate Bangladeshis sent a record $30.33 billion in remittances in the fiscal year 2024-25 (FY25), marking the highest amount ever received in a single fiscal year in the country’s history.

This figure reflects a 26.80 percent increase compared to the $23.91 billion received in the previous fiscal year (FY24).​

 

[Saif]

Forex reserve crosses $30b again

The country’s gross foreign exchange reserve has once again crossed $30 billion amid increased remittance and export earnings...

www.newagebd.net

Forex reserve crosses $30b again
Staff Correspondent 05 August, 2025, 23:08

The country’s gross foreign exchange reserve has once again crossed $30 billion amid increased remittance and export earnings.

According to Bangladesh Bank, the foreign exchange reserve of the country reached $30 billion on July 4, up from $29.8 billion on July 31.

In June 30, Bangladesh’s foreign exchange reserve hit $31.72 billion after more than two years.

The reserve dropped to $29.53 billion on July 8 after the payment of import bills worth $2.19 billion was made to the Asian Clearing Union for May and June.

Foreign exchange reserves, calculated under IMF guidelines, stood at $24.97 billion on July 4.

The country received around $4 billion from International Monetary Fund, World Bank, the Asian Development Bank and Japan International Cooperation Agency at the end of June which contributed most to the jump in reserve balance.

Besides, remittance inflow and export earnings soared in current months.

According to Bangladesh Bank data, remittance inflow surged by 29.5 per cent to $2.47 billion in July from 1.91 billion in the same month in 2024.

Remittance inflow crossed the $30 billion mark for the first time in a single fiscal year, reaching $30.32 billion in FY2024–25. It marked a 26.8-per cent increase from $23.91 billion of FY24.

The export earnings in July, the first month of the 2025-26 financial year, witnessed a 24.9 per cent robust growth to $4.77 billion.

The BB follows the IMF’s Balance of Payments and International Investment Position Manual, 6th edition (BPM6), for calculating gross and net international reserves.

Bangladesh’s trade deficit, although still large, also showed slight improvement in FY25.

The gap narrowed to $20.5 billion, compared with $22.4 billion a year earlier.

The Bangladeshi taka has continued to weaken against the US dollar, reaching Tk 123 per dollar due to a dollar shortage and pressure on banks to settle import payments.

The interbank exchange rate was Tk 108.63 a dollar on May 25 amid pressure on banks to settle import payment obligations.

The exchange rate was Tk 86 a dollar in January 2022 and Tk 94.7 in July 2022.​

 

[Saif]

Short-term economic reforms by Dec: Salehuddin

Short-term reforms will be brought about in the economic sector by December this year, said Finance Adviser Salehuddin Ahmed yesterday.

www.thedailystar.net

Short-term economic reforms by Dec: Salehuddin

Short-term reforms will be brought about in the economic sector by December this year, said Finance Adviser Salehuddin Ahmed yesterday.

Speaking to journalists after a meeting of the Cabinet Committee on Government Purchase, he said, "My target is to complete bringing about some reforms by December. We've already met a few immediate needs."

"There are some other reforms that are mid-term and long-term, like bank resolution, which will take a bit more time," he said.

"I went to Bangladesh Bank the day before yesterday—they've created a roadmap. Its implementation will come next," said Ahmed.

He said that the government will complete the separation of tax policy from tax implementation soon.

"We'll amend the ordinance slightly and get that done. The manpower issue will be settled—that won't be too difficult," he said.

In response to a question about the country's economic situation under the interim government, he said, "We've come a long way up from the edge of the cliff."

"To truly understand this, you need both vision and insight. It isn't right to just look at the surface and make superficial comments," said the finance adviser.

"Over the past year, the economy has regained a fair amount of stability. But definitely, there are still many challenges—like inflation, employment, and the issue of US tariffs," he said.

"The biggest challenge now is to restore business confidence and inject some momentum into trade and commerce, which has slowed down," he added.

Regarding the tariff issue, he said, "It has come down from 35 percent to 20 percent. Compared to other countries, that's not bad."

"Now we need to sign an agreement with the US—that hasn't happened yet. Once it happens, the details will be finalised," said Ahmed.​