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Bangladesh's garment exports to the EU grew by 25.3% in the first four months of 2025, reaching €7.54 billion—outperforming China, India, and Vietnam. This marks the highest growth among major exporters. Monthly growth peaked at 60.9% in January. Experts attribute the rise to strong global demand, timely shipments, and competitive pricing. The US market also saw a 29.3% increase in Bangladeshi apparel imports. Sustained growth, however, will depend on investments in capacity, sustainability, and technology.
Bangladesh Bank Governor Dr. Ahsan H. Mansur has announced that five private Islamic banks are scheduled to undergo a merger in the near future. Addressing concerns, he clarified that this move is unrelated to the upcoming national elections and will proceed within the next few months, well before the polls.
“There is no reason for bank officials to worry,” Dr. Mansur said, noting that necessary adjustments, including potential relocation of branches, may take place. Banks with a higher concentration of urban branches might be directed to expand into rural areas to ensure balanced coverage.
He also discussed the ongoing efforts to recover assets laundered abroad. “This will be a phased process. No asset can be reclaimed without a final court verdict,” he said. However, he mentioned the existence of a mechanism for out-of-court settlements that could potentially expedite the repatriation of illicit funds.
Five Private Islamic Banks Set to Merge Soon: Bangladesh Bank Governor
The World Bank has approved a $250 million loan to enhance transparency, accountability, and efficiency within Bangladesh’s public sector. The project, titled “Strengthening Institutions for Transparency and Accountability,” will support key agencies including the Bangladesh Bureau of Statistics, National Board of Revenue, Planning Division, Central Procurement Technical Unit, and the Office of the Comptroller and Auditor General. The World Bank expects these institutional reforms to help reduce corruption in the country.
World Bank Approves $250 Million Loan to Boost Governance in Bangladesh
Sabekunnahar Mitu, a woman entrepreneur from Faridpur, is exporting eco-friendly handicrafts made from jute, hogla leaves, water hyacinth, and straw to Europe through her company LAM Creations. With two factories and over 500 workers, her business produces over 50 types of sustainable products. Earning around Tk 500,000 in monthly profit, she has been recognized by Bangladesh Bank for her achievements. Mitu aims to expand further with government support, bringing economic empowerment to rural communities and promoting environmentally conscious manufacturing.
Container handling at Chattogram Port has plummeted due to the extended government holidays for Eid-ul-Azha. Typically, the port clears around 5,000 containers daily, but this number dropped to less than half during the break. As of Thursday morning, import containers at the port rose from 28,000 on June 4 to over 39,000—an 11,000 increase in seven days. A pre-Eid customs work stoppage and transport strike had already caused vessel congestion. Although port officials say there's still enough space, traders warn further delays could severely affect service quality. Port operations remained active during the holidays, except on Eid day itself.
Bangladesh's leather industry is bracing for a 10–15% drop in rawhide collection after Eid-ul-Azha, falling to around 8 million from over 9 million last year. Despite growing global demand, exports may stumble again due to the inoperative Central Effluent Treatment Plant (CETP) in Savar. Tannery owners call it the sector’s biggest obstacle, suggesting BDT 300 crore investment could revive operations. While seasonal traders continue collecting salted hides, government-fixed prices prevail. Salt preservation efforts and new export permissions offer slight relief amidst structural bottlenecks.
Sugar prices in the global market may decline in the 2025–26 season due to expected production increases in India and Brazil. BMI forecasts a 26.3% rise in Indian output, while Brazil may boost production by shifting from ethanol to sugar due to lower oil prices. Although production in Brazil and Thailand may slightly dip from earlier estimates, overall supply is set to grow. Falling prices have already been observed in global markets, with traders selling more in anticipation of further declines.
Despite nearly $9 billion in increased remittance and export income, Bangladesh’s foreign reserves have hovered around $20 billion for 11 months. Declines in foreign direct investment, aid, and long-term loans, alongside higher import and debt repayment costs, offset the gains. The dollar crisis has eased, but reserves haven’t grown. Experts stress the need for political stability and investment-friendly policies to boost reserves. Bangladesh Bank expects a $3 billion rise in June with anticipated foreign loan inflows from global institutions like the IMF and World Bank.
Bangladesh Bank Governor Ahsan H. Mansur has indicated that financial settlements could be considered as “one of the options” in dealing with relatively minor financial misconduct cases. In an interview with the Financial Times, Mansur stated that the central bank's response will be determined by the nature of the alleged actions of the accused individuals.
Mansur, who is leading Bangladesh Bank's efforts to recover assets siphoned off during Prime Minister Sheikh Hasina’s administration, mentioned that the bank aims to raise up to $100 million to pursue future international legal actions.
"The money was stolen," he said, stressing the moral and legal obligation of the UK government to assist in tracing and identifying the illicit assets. "Legally—and I would say morally as well—it is the UK’s responsibility to help in locating these funds," the chief advisor added.
Financial Settlement a Possible Option for Lesser Offenses: Bangladesh Bank Governor
The World Bank has maintained its forecast of 3.3% GDP growth for Bangladesh in FY2024-25, citing political instability and financial challenges as key factors. Earlier, in January, the projection was 4.1%. The Bank also revised the 2025-26 forecast to 4.9%, down from 5.4%. Meanwhile, the BBS estimates 3.97% growth for FY2024-25. Other global institutions like the IMF and ADB have also lowered their growth outlooks for Bangladesh, reflecting ongoing inflation, unrest, and weakening financial conditions.
To facilitate important and foreign trade-related transactions, especially for the pharmaceutical sector and export-import industries, authorized dealer branches of banks in Dhaka, Chattogram, and other key commercial hubs will remain partially open on June 11, despite the public holiday. According to a directive from Bangladesh Bank’s Department of Offsite Supervision, banking hours on that day will be from 10 AM to 4 PM, while transactions will be processed from 10 AM to 2 PM. Bank officials on duty that day will receive allowances as per government regulations.
Banks to Remain Partially Open in Key Commercial Areas on June 11 to Facilitate Foreign Transactions
Top U.S. and Chinese officials are meeting in London for high-level trade and economic talks aimed at easing tensions between the two countries. Treasury Secretary Janet Yellen and Vice Premier He Lifeng will discuss issues including global economic trends, debt relief for developing nations, and trade practices. This marks their third meeting in under a year. Both sides have shown a willingness to stabilize ties, with the talks coming as Western nations look to reduce dependency on Chinese supply chains.
All import-export operations through Benapole Land Port will remain suspended for 10 days from June 5 to June 14 in observance of Eid-ul-Azha. However, cross-border movement of passport-holding travelers between India and Bangladesh will continue as usual.
Shamsur Rahman, President of the Benapole C&F Agents Association, confirmed that all customs and port-related activities, including trade operations, will be on pause during the holiday. Normal operations will resume on the morning of June 15.
Benapole Port Director (Traffic) Md. Shamim Hossain said enhanced security measures are in place to prevent any untoward incidents during the holiday closure. Officer-in-Charge Ibrahim Ahmed added that despite the suspension of trade, traveler movement will remain uninterrupted. Due to an expected surge in passenger traffic, immigration staff have been placed on standby to manage the rush efficiently.
Benapole Land Port to Halt Trade Operations for 10 Days During Eid-ul-Azha; Passenger Movement Unaffected
National Board of Revenue (NBR) Chairman Abdur Rahman Khan has stated that a limited scope for legalizing undisclosed income—commonly referred to as black money—is being proposed as an “exit route” for individuals wishing to bring such funds into the formal economy.
Addressing the issue, he clarified that the proposal aims to help individuals who, for various reasons, have kept money unreported over the years. However, he emphasized that this is not a move to endorse the act of hiding income.
Earlier, Economic Advisor Salehuddin Ahmed remarked that if such an opportunity were to be offered, it should come with a significantly higher tax rate than in the past. “We’re not claiming this is an ideal initiative,” he noted.
Abdur Rahman Khan also mentioned that the previous provision to legalize black money by paying a 15% tax was scrapped after the new government took office. Another provision, which allows for immunity from questioning if one buys land or property while paying a slightly higher tax, is set to expire on June 30. “We have not extended this facility either,” the NBR chairman added.
Limited Scope for Legalizing Undisclosed Income Proposed: NBR Chairman
Economic Advisor Dr. Salehuddin Ahmed has confirmed that electricity produced by the Ruppur Nuclear Power Plant will be supplied to the national grid by December this year. The construction of the 2400 MW nuclear power plant in Ruppur is progressing rapidly. He also mentioned that an agreement was signed with Nepal on October 3, 2024, under which 40 MW of hydropower will be imported at an affordable rate to meet the summer electricity demand. Furthermore, to ensure transparency and accountability in the power sector, the “Electricity and Energy Rapid Supply Enhancement Act, 2010” has been repealed. A national committee has been formed to review the agreements made under this law and to recommend changes.
Ruppur Nuclear Power Plant to Supply Electricity to National Grid by December: Dr. Salehuddin
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