A high-level meeting between Bangladesh and Pakistan was held to enhance bilateral trade, food supply cooperation, and industrial collaboration. The meeting took place at the Ministry of Industries, where Bangladesh’s Minister for Industries, Commerce, and Textiles Khandaker Abdul Muktadir met with a delegation led by Asim Azim Siddiqui, Chairman of the Trading Corporation of Pakistan (TCP). Pakistan’s High Commissioner to Bangladesh Imran Haider and senior officials from both countries also attended.

Discussions focused on strengthening cooperation in sectors such as agriculture, fertilizer, edible oil, pulses, chickpeas, sugar, urea, and jute. Muktadir emphasized the importance of stronger trade ties for sustainable economic growth and highlighted ongoing government reforms to promote industrialization and a business-friendly environment. Siddiqui expressed Pakistan’s interest in exporting agricultural products to Bangladesh and noted the demand for Bangladeshi jute products in Pakistan.

Both sides agreed to finalize a memorandum of understanding between the Trading Corporation of Bangladesh (TCB) and TCP to facilitate food trade, expected to be signed in early July. They also decided to activate the Bangladesh–Pakistan Joint Working Group and exchange business delegations to expand cooperation in agriculture and industry.

The Bangladesh government has decided to withdraw its proposal to impose a fixed-rate or 'package VAT' on small and retail businesses. The decision comes ahead of the passage of the Finance Bill as the Finance Minister Amir Khasru Mahmud Chowdhury instructed the removal of the related provision. However, the requirement for a Business Identification Number (BIN) will remain mandatory for opening current accounts in banks or financial institutions, renewing trade licenses, and opening merchant accounts with mobile financial services such as bKash and Nagad.

Currently, retail businesses with an annual turnover of 5 million taka or more are required to register for VAT, while smaller businesses remain outside its scope. The new budget proposal had aimed to bring all retail businesses under VAT coverage regardless of turnover starting July 1, which triggered concern among small traders. They feared increased operational costs and potential harassment by VAT officials.

Officials cited possible implementation difficulties and the risk of medium-sized businesses exploiting the package VAT system as reasons for reconsidering the proposal.

According to the 2026–27 fiscal year budget, Bangladesh has proposed reducing the corporate tax rate for private universities, medical, dental, engineering, and information technology-based educational institutions. The proposed change would lower the current 10 percent rate to 5 percent. The National Board of Revenue (NBR) stated that the initiative aims to improve education quality, expand infrastructure, and support the private education sector.

The new proposal also includes easing previous conditions for tax reduction, making it simpler for eligible institutions to benefit. Universities and colleges approved by the University Grants Commission (UGC) will be covered under this tax relief plan. The move follows long-standing demands from associations representing private universities for tax cuts or exemptions.

If implemented, the reduced tax rate is expected to provide financial relief to private educational institutions, potentially enabling further investment in academic and infrastructural development.

Bangladesh’s proposed 2026–27 national budget has reduced the capital gains tax on personal gold sales to 5 percent, down from the previous 15 percent. The National Board of Revenue (NBR) announced that individuals selling gold or gold jewelry will now pay tax only on the profit portion, calculated by subtracting the purchase price from the current sale price. The new rate is expected to ease the tax burden on gold transactions.

In addition to personal sales, the NBR has also revised the tax structure for gold traders. The source tax on gold and gold jewelry supply has been lowered from 5 percent to 0.5 percent. According to the NBR, the changes aim to simplify the tax system, enhance transparency in legalizing undeclared assets, and reduce the tendency to overreport gold holdings in tax files.

Officials and stakeholders believe that once implemented, the new rates will bring greater transparency to both personal and business-level gold transactions.

The government of Bangladesh has finalized a decision to raise the tax-free income limit for individual taxpayers from Tk 375,000 to Tk 400,000. The move aims to provide relief to ordinary citizens facing prolonged inflationary pressure. As a result, individuals earning less than Tk 600,000 annually, including one-third tax-free salary benefits, will not be required to pay income tax.

According to sources, the Ministry of Finance and the National Board of Revenue are introducing several last-minute amendments before the passage of the Finance Bill 2026 in the National Parliament on Tuesday. These include reconsidering the mandatory submission of Taxpayer Identification Numbers for opening bank accounts, canceling the rule requiring the declaration of actual property values, and maintaining a 20 percent tax rate on dividend income to protect stock market investors. The government has also decided to postpone the plan to impose a uniform VAT rate on retail businesses.

The interim government had earlier raised the tax-free threshold to Tk 375,000 in the 2025–26 budget. Prime Minister Tarique Rahman has now approved an additional Tk 25,000 increase, bringing the total rise in one year to Tk 50,000.

The government of Bangladesh is planning to raise the tax-free income threshold for individuals to Tk 400,000 for the 2026–27 and 2027–28 fiscal years, aiming to ease the tax burden on low-income earners. At the same time, it may withdraw the proposal to make Tax Identification Numbers (TIN) mandatory for opening bank accounts, following criticism that such a rule could hinder financial inclusion.

According to official sources, the tax-free income limit could further increase to Tk 450,000 in 2028–29 and 2029–30, and to Tk 500,000 in 2030–31. These revisions may be included before the passage of the Finance Bill 2026 in the National Parliament. The current tax-free limit is Tk 350,000, while the finance minister had earlier proposed Tk 375,000 for 2026–27.

Other considerations include reducing the capital gains tax on gold sales from 15% to 5%, maintaining a 0.2% advance income tax on business-to-business transactions, and lowering the corporate tax rate for private universities and ICT-based institutions from 10% to 5%.

Prime Minister Tarique Rahman told the national parliament on Monday that Bangladesh has entered a democratic phase and urged all to look ahead rather than dwell on the past. Speaking during the discussion on the proposed national budget, he said foreign currency reserves had declined due to money laundering but emphasized that the government is working to stabilize the economy.

Rahman described the proposed budget as 'life-friendly,' noting that for the first time after a budget announcement, prices of essential goods had not increased. He said the government aimed to provide relief to citizens amid economic challenges, corruption, and money laundering concerns. The budget, he added, seeks to build a just, humane, and inclusive economy while easing the burden on low-income groups.

The prime minister highlighted that duties on 61 essential items had been withdrawn to keep prices stable. He said the budget’s main goal is to restore economic discipline and create a foundation for sustainable growth.

Opposition Leader Dr. Shafiqur Rahman told the national parliament on Monday that the proposed budget lacks any guideline for recovering laundered money and called for strong initiatives to bring it back. Speaking during the general discussion on the proposed budget, he also suggested changing the fiscal year from July–June to January–December to align with the calendar year and improve efficiency. The session, presided over by Speaker Hafiz Uddin, began at 10:30 a.m.

Dr. Rahman argued that recovering even one-ninth of the laundered funds would eliminate the budget deficit and emphasized that such money belongs to the people. He urged visible and effective steps to ensure accountability and prevent future illicit transfers. The opposition leader also discussed education, health, expatriate welfare, and corruption, urging reforms and equitable treatment for all sectors. He called for better allocation for Qawmi madrasa and Ebtedayee education, improved healthcare infrastructure, and stronger research funding in universities.

He further proposed forming a task force to address expatriate workers’ issues and demanded increased allowances for freedom fighters. Rahman concluded by urging cooperation between government and opposition to ensure justice, transparency, and national progress.

Bangladesh’s apparel exports to the European Union (EU) fell sharply in the first four months of 2026, marking the steepest decline among the bloc’s top ten garment suppliers. According to Eurostat data, exports from Bangladesh dropped by 19.33 percent year-on-year to 6.086 billion euros between January and April, down from 7.544 billion euros in the same period of 2025. In April alone, exports fell 19.53 percent to 1.494 billion euros. The decline has raised concern among industry stakeholders amid global trade uncertainty and domestic challenges.

Eurostat figures show that the EU’s overall apparel imports decreased by 10.42 percent during the same period, totaling 27.77 billion euros. However, Bangladesh’s export contraction exceeded the EU’s average decline. Other major suppliers such as China, Turkey, India, Vietnam, and Pakistan also saw reductions, but none as steep as Bangladesh’s. The country’s export volume to the EU fell 9.91 percent to 435.9 million kilograms, while the average unit price dropped 10.45 percent to 13.96 euros per kilogram.

Industry representatives noted that nearly half of Bangladesh’s total export earnings come from the EU, warning that a prolonged downturn in this market could negatively affect the broader economy.

International oil prices increased following several days of retaliatory attacks between the United States and Iran, which disrupted energy transport through the Strait of Hormuz and exposed the fragility of their interim peace agreement. On Monday, Brent crude rose by 58 cents, or 0.8 percent, to 72.57 dollars per barrel, while U.S. West Texas Intermediate crude gained 88 cents, or 1.3 percent, to reach 70.11 dollars per barrel.

Analysts from ING warned that significant risks remain in the oil market, noting that if supply normalization takes longer than expected, prices could rise further. ANZ Bank analysts added that earlier assumptions about a quick recovery of oil supply from the Persian Gulf may now be reassessed. The two countries have agreed to halt attacks and plan to meet in Doha on Tuesday to discuss resolving their Hormuz Strait dispute.

Saudi Aramco resumed crude loading at its Ras Tanuma terminal last Friday after a four-month suspension, despite a helicopter crash there on Sunday that killed 14 people. Analysts cautioned that tanker congestion, damaged infrastructure, and halted production could delay a full supply recovery for the rest of the year.

Energy Minister Iqbal Hasan Mahmud Tuku told parliament on Sunday that two power stations in Bangladesh’s national grid have been shut down due to technical faults, removing about 3,000 megawatts from the transmission system. He said this disruption has forced authorities to impose load-shedding across various parts of the country, including Dhaka. The minister added that he has discussed the issue with the leader of the opposition and expects the situation to improve within two days.

The statement came during a parliamentary session under Rule 300, where Tuku explained the reasons behind the recent power shortages. His remarks followed a separate comment from National Citizen Party (NCP) convener Nahid Islam, who criticized the ruling party for alleged increases in leaders’ wealth during their tenure and mentioned personal financial difficulties.

The minister’s assurance of quick recovery suggests that the government expects the technical problems to be resolved soon, potentially stabilizing electricity supply across the country.

Bangladesh and China have signed a memorandum of understanding to facilitate the export of Bangladeshi jackfruit to the Chinese market. The agreement, concluded during Prime Minister Tarique Rahman’s recent visit to China, is viewed as a significant step for Bangladesh’s agricultural export sector. According to the Prime Minister’s Office, the two countries signed a total of 17 MoUs covering areas such as infrastructure, disaster management, digital economy, and agricultural trade.

Experts note that despite being an agriculture-based economy, Bangladesh has yet to achieve its full export potential. Access to China’s vast market could help increase farmers’ income and expand the agricultural economy, while also opening new markets for other produce. However, challenges remain in maintaining international quality standards, improving processing, storage, and packaging systems.

Global demand for jackfruit is rising, with the export market growing from USD 2 billion in 2012 to USD 3.7 billion in 2023. Bangladesh, one of the world’s largest producers, currently holds only 0.3 percent of global exports. Experts emphasize that enhancing processing capacity and ensuring quality compliance are essential for Bangladesh to compete internationally.

Bangladesh Bank has amended the policy of its Tk 10,000 crore agricultural refinance scheme aimed at boosting agricultural production, ensuring food security, and creating rural employment. The central bank’s Agricultural Credit Department issued a circular on Sunday announcing the revisions, which modify two sections of an earlier circular issued on June 8.

Under the revised policy, the refinance fund will now be formed and operated using surplus liquidity from scheduled banks, instead of being financed directly by Bangladesh Bank as previously planned. The duration of the scheme has also been shortened from five years to three years, effective from the date of the circular’s issuance.

The changes are intended to adjust the funding structure and operational timeline of the scheme to better align with current financial conditions and policy priorities.

State-owned Bangladesh Satellite Company Limited (BSCL) has paid Tk 291.5 million in unpaid income taxes for its first four fiscal years—2018–19, 2019–20, 2020–21, and 2021–22. The payment was made in June of the current fiscal year following a review of the company’s financial management by the current administration.

According to BSCL, settling these long-standing liabilities marks a significant step toward establishing financial discipline within the organization. The company stated that this initiative will reinforce its financial foundation and help ensure accountability, transparency, and good governance in the future. Managing Director and CEO Dr. Imadur Rahman said the leadership prioritized transparency and discipline in financial management and has been systematically resolving past financial obligations.

BSCL became profitable for the first time in the 2024–25 fiscal year, reporting total revenue of Tk 2.45 billion, expenses of Tk 2.06 billion, and a net profit of Tk 383.5 million. Observers believe that clearing old debts and achieving profitability signal a positive shift in the company’s financial management and will support sustainable growth ahead.

State Minister Zunaid Abdur Rahim Saki told Parliament on Sunday that taxes on grocery and kitchen markets will be determined rationally under the proposed 2026–27 national budget. He said the expansion of the tax net will be done carefully, with flat rates based on taxpayers’ capacity. Saki emphasized that the government aims to reassure citizens while ensuring fair revenue collection.

He announced that revenue policy formulation and collection will be separated, with an independent policy body formed outside the bureaucracy. The minister expressed confidence that strict anti-evasion measures and automation will help achieve the revenue target of Tk 6.95 trillion. He noted that Bangladesh’s budget size is about 13 percent of GDP, smaller than neighboring countries, and described the new budget as expansionary yet realistic, balancing development priorities with economic realities.

Saki said the government inherited a fragile economy but designed the budget to rebuild and ensure long-term prosperity. He added that automation programs have already begun in the National Board of Revenue and five other institutions to curb tax evasion and improve efficiency.