The banking sector in Bangladesh is facing a severe crisis due to unprecedented looting under the previous Awami League government. Defaulted loans have soared to 20%, with predictions of reaching 35%. Rampant embezzlement and money laundering have led to a liquidity crisis, falling income, rising non-performing assets, and worsening capital adequacy. Eleven banks earned no returns on assets in the last quarter, while 82% of loans have become unrecoverable. Experts stress the need for urgent reforms to restore stability and confidence.

In light of a recent U.S. court decision to suspend a 37% tariff on Bangladeshi exports, Chief Adviser Dr. Muhammad Yunus expressed cautious optimism in an interview with Nikkei Asia. He stated that former U.S. President Donald Trump aims to reduce trade deficits with all partners. If the U.S. proposes increased purchases of American products, Bangladesh is open to reducing imports from other countries accordingly. “We import a lot of cotton from Central Asia and India. Why not buy from the U.S. instead, to help reduce the trade imbalance?” Yunus said. He expressed hope that such measures would ultimately benefit Bangladesh.

Finance Adviser Dr. Salehuddin Ahmed will present the national budget for the fiscal year 2025–26 on June 2. A pre-recorded budget speech will be broadcast at 4 PM on Bangladesh Television (BTV) and Bangladesh Betar. The government has also requested all private TV channels and radio stations to air the speech simultaneously. Sources indicate the upcoming budget may include a deficit of Tk 2.26 trillion. Allocations for operating and non-development expenditures are expected to total Tk 5.45 trillion, while development spending may reach Tk 2.45 trillion. An estimated Tk 20.8 billion may be earmarked for election-related activities in the new fiscal year.

The government is working with four prominent international organizations to recover assets allegedly laundered by Sheikh Hasina and her family during the Awami League’s tenure. These agencies include the Stolen Asset Recovery Initiative (StAR), the International Anti-Corruption Coordination Centre (IACCC), the International Centre for Asset Recovery (ICAR), and the U.S. Department of Justice. According to officials, the Bangladesh Financial Intelligence Unit is collecting data to identify and recover the funds, and investigations are underway wherever evidence surfaces.

Bangladesh Bank reported on Tuesday that the country’s gross foreign exchange reserves have increased to approximately $25.80 billion. However, according to the IMF’s BPM6 standard, usable reserves stand at $20.56 billion. Earlier, economist Dr. Ahsan H. Mansur stated that reserves were at $27 billion and projected to rise to $30 billion next month.

Bangladesh Bank Governor Dr. Ahsan H. Mansur revealed that an estimated $18 to $20 billion has been illegally siphoned out of the country. Speaking at an event, he stated that documenting these transactions is time-consuming but currently underway. Once the investigations are complete, steps will be taken to repatriate the funds. He also mentioned that a joint investigative task force is already operational and may be expanded. In FY 2023–24, the Financial Intelligence Unit received 17,345 suspicious transaction reports—a 22.96% increase from the previous year.

For the first time in its history, Bangladesh’s per capita income has reached $2,820, the highest on record, according to preliminary data for the fiscal year 2024–25 from the Bangladesh Bureau of Statistics (BBS). This marks an increase of $82 from last year’s $2,738. The previous highest was $2,793 in FY 2021–22. BBS clarified that the per capita income figure does not represent individual earnings but is derived from the country's total national income—including domestic production and remittances—divided by the population.

The government expects to secure $1 billion in support from Japan, with $500 million earmarked for direct budgetary assistance, according to Press Secretary Shafiqul Alam. He confirmed that the Chief Adviser is set to visit Japan, where he will meet with around 300 Japanese investors. Discussions will focus on boosting Japanese investments in Bangladesh’s economic zones. Shafiqul also mentioned that the proposed Maheshkhali-Matarbari development plan would require around $140 billion in investments, featuring six port terminals capable of handling the world's largest ships and contributing to the development of Cox’s Bazar.

According to BIDA, Bangladesh received $756 million in net foreign direct investment (FDI) between October last year and March this year. During this period, BIDA registered 739 industrial projects, including 66 wholly foreign-owned and 61 joint ventures. Additionally, BEZA signed land lease agreements with 16 firms—6 of which are fully foreign-owned and 3 joint ventures. This report comes amid recent claims from some industry players that no investment had arrived in the past eight months.

Chief Adviser Dr. Muhammad Yunus has called for expedited development of Matarbari’s infrastructure to transform the coastal region into a leading production and export-oriented free trade zone. “Our vision is to make Matarbari a central hub for ports, logistics, manufacturing, and energy,” he said. He emphasized the need to attract large-scale foreign investment to meet this goal and disclosed plans to establish a second exclusive Japanese economic zone in the Matarbari Integrated Development Initiative (MIDI) area.

Speaking at a seminar, Dr. Salehuddin Ahmed, Economic Adviser to the government, affirmed Bangladesh’s commitment to ensuring transparency, efficiency, and accountability in financial services. He emphasized that sustainable development rests on three pillars: accountability, transparency, and ethical governance. “These are not abstract concepts, but practical necessities,” he stated. He noted that monitoring, auditing, and implementation practices help turn policy documents into real, tangible benefits for the people.

Economic Adviser Salehuddin Ahmed has called for abandoning unnecessary and overly expensive development projects in favor of initiatives that directly benefit the public. He emphasized the need for ethical, transparent, and need-based development planning, noting that unqualified contractors often receive projects without delivering expected outcomes. He stressed the importance of thorough audits and feasibility assessments to ensure meaningful progress in the country's socio-economic landscape.

The Ministry of Power, Energy, and Mineral Resources reported a 21% increase in gas supply to industrial sectors in the first four months of this year compared to the same period in 2024. The ministry further stated that an additional 150 million cubic feet of gas will be supplied daily starting May 28. Petrobangla has also taken note of misleading statements by some industrial associations regarding gas supply, asserting that the government remains committed to improving industrial energy provisions.

The Government of Bangladesh has signed a $270 million loan agreement with the World Bank to support the “B-Strong” initiative aimed at post-flood recovery. The funds will be used to repair damaged roads, embankments, and provide rehabilitation aid to affected communities following last year’s devastating floods. The loan includes a 5-year grace period and is repayable over 30 years. It carries a 0.75% annual service charge and 1.25% interest rate, with a 0.5% maximum commitment fee on undisbursed funds.

Bangladesh Investment Development Authority (BIDA) is set to host a joint investment and trade summit with China on June 1. BIDA Executive Chairman Ashiq Chowdhury confirmed that 250 Chinese investors and business leaders—representing around 100 companies including 6–7 from the Fortune 500 list—will attend. Delegates will also include top representatives from four Chinese Chambers of Commerce. The Chinese delegation will be led by Commerce Minister Wang Wentao. A similar international investment summit was held in Dhaka in April.