Finance Minister Amir Khasru announced that the new national budget includes major initiatives to restore discipline in Bangladesh’s banking and financial sectors. Presenting the budget on Thursday, he said the reforms aim to revive the economy and sustain investment flows by reducing default loans, ensuring transparency in loan approval and rescheduling, and strengthening accountability in bank management. A risk-based supervision system will be introduced to rebuild weak banks’ financial capacity, with recapitalization and management reforms as needed.

The minister stated that about Tk 40,000 crore has already been spent this fiscal year to recapitalize weak banks, alongside restructuring efforts to return depositors’ funds. The budget also includes measures to repatriate money laundered abroad. Political appointments and interference in bank operations are to be stopped through legal amendments, while international standards for risk management, capital adequacy, and corporate governance will be enforced to make financial institutions more stable and competitive.

The budget further outlines structural reforms in the banking and capital markets to build a modern and sustainable financial system and shift from a debt-driven to an investment-based economy by promoting domestic and foreign investment and developing the bond market.

The government has proposed a total allocation of Tk 17,345 crore for the power and energy sector in the 2026–27 fiscal year, up from Tk 16,952 crore in 2025–26. This represents an increase of about Tk 400 crore, reflecting the sector’s continued importance in national development planning.

To encourage investment and streamline supply operations, the budget proposal includes a reduction in tax deduction at source. The rate for electricity purchases from power producers is proposed to be lowered from 4 percent to 3 percent, while the rate for fuel oil supplied by refineries would drop from 1.5 percent to 1 percent.

According to the proposal, these measures are expected to reduce business costs in the power and energy sector and make its operations more dynamic.

The government has set a target to reduce inflation to 7.5 percent in the 2026–27 fiscal year. To stabilize prices, the proposed budget includes measures to lower source taxes on essential and agricultural products. About 60 items are expected to benefit from significant tax reductions, with the new proposal setting a uniform source tax rate of 0.5 percent, down from the current rates of 1, 2, and 5 percent.

According to the National Board of Revenue, the tax relief will apply to key commodities such as rice, wheat, potatoes, onions, garlic, ginger, salt, sugar, edible oil, and various seeds. Livestock, poultry, and fish are also included to boost the supply of animal protein. The government stated that this initiative aligns with its electoral commitment to ease the burden of rising living costs.

Market analysts believe that lowering taxes at the production and distribution levels will reduce business expenses and help stabilize retail prices. However, they emphasize that effective market monitoring and efficient supply management will be essential to achieve the desired results.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury will hold a post-budget press conference on Friday at 3 p.m. at the Osmani Memorial Auditorium in Dhaka. The event follows the presentation of the proposed national budget for the 2026–27 fiscal year, which took place in the National Parliament on Thursday.

Before being presented in Parliament, the proposed budget received approval from a special cabinet meeting attended by the Prime Minister. The Finance Minister traditionally holds a press conference the day after the budget presentation to explain key aspects of the proposal and respond to questions from journalists.

The upcoming briefing is expected to provide further details on the newly proposed budget of Tk 9.38 trillion and clarify its major components and fiscal priorities for the next financial year.

Finance Minister Amir Khasru Mahmud Chowdhury announced that default loans in Bangladesh have reached Tk 6.44 trillion, with the default rate climbing to 35.73 percent in the first quarter of the 2025–26 fiscal year. He made the disclosure on Thursday while presenting the national budget.

According to the minister, the default loan rate was 13.16 percent in 2005. He also stated that the overall capital adequacy in the banking sector, which stood at 7.30 percent in December 2005, has fallen to a negative 2.64 percent by the end of 2025. Additionally, private sector credit growth has declined from 18.30 percent in the 2005–06 fiscal year to 6.50 percent in 2024–25.

The figures presented highlight a significant deterioration in the banking sector’s financial health, reflecting rising loan defaults and weakening capital positions across banks.

The Bangladesh government has extended the operating hours for shops and shopping malls in response to traders’ demands. According to a statement confirmed by the Bangladesh Shop Owners Association, businesses can now remain open from 11 a.m. to 9 p.m. daily. The decision was communicated by the Minister of Power, Energy and Mineral Resources, Iqbal Hasan Mahmud, during a phone conversation with the association’s president, Md. Helal Uddin. The association expressed gratitude to Prime Minister Tarique Rahman and the minister for the decision.

Earlier, amid a global energy crisis triggered by the Middle East conflict, the government had shortened office hours and ordered shops and malls to close by 6 p.m. from April 2. That restriction was later eased slightly following requests from business groups. Before Eid-ul-Azha, the government temporarily relaxed the schedule, but after the festival, closing time was again set at 7 p.m. Traders had since urged for longer operating hours, proposing a 12 p.m. to 10 p.m. schedule.

The new timing, effective immediately, aims to balance energy-saving measures with business interests as the country continues to manage the impact of the global fuel shortage.

The BNP-led government has proposed a national budget of Tk 9.38 trillion for the 2026–27 fiscal year, presented in parliament by Finance Minister Amir Khosru on Thursday. To address a deficit of Tk 2.43 trillion, the government plans to increase borrowing from both domestic and foreign sources.

According to the proposal, Tk 1.16 trillion will be borrowed from foreign sources and Tk 1.27 trillion from domestic sources. Of the domestic borrowing, Tk 1.12 trillion will come from the banking system, while Tk 150 billion will be raised through savings certificates and other instruments. In the current 2025–26 fiscal year, the government had targeted Tk 1.04 trillion in bank borrowing but has already borrowed Tk 1.09568 trillion by May 10, exceeding the target.

The proposed budget also includes allocations for various sectors, such as Tk 188.4 billion for aviation and tourism, with Tk 30 billion specifically for ecotourism development.

Bangladesh’s Finance Minister Amir Khasru Mahmud Chowdhury has proposed a new tax-free income threshold of Tk 375,000 for individuals in the upcoming fiscal year. The announcement came during his budget speech in the National Parliament, where he also introduced a five-year plan for personal income tax adjustments. Under the new structure, individuals earning up to Tk 375,000 will not be required to pay income tax, while women, senior citizens, persons with disabilities, and freedom fighters will enjoy additional exemptions.

According to the proposed roadmap, the tax-free limit will remain unchanged for the 2027–28 fiscal year, rise to Tk 400,000 in 2028–29 and 2029–30, and reach Tk 450,000 in 2030–31. The minister said the plan aims to create a fair, technology-driven, and predictable revenue framework. The new tax slabs will range from 10% to 30% depending on income levels, with specific reliefs for senior citizens over 65, third-gender taxpayers, and guardians of persons with disabilities.

The proposal marks the first time Bangladesh has introduced a multi-year personal tax exemption plan, intended to help taxpayers anticipate future obligations and support a progressive tax system.

Bangladesh’s Finance Minister Amir Khosru Mahmud Chowdhury has proposed a Tk 49,400 crore increase in education spending for the 2026–2027 fiscal year, raising the total allocation to Tk 1,36,606 crore, equivalent to 2 percent of GDP. The announcement came during his budget speech, where he emphasized rebuilding the education system as a national priority after years of institutional decline. The previous fiscal year’s allocation was Tk 87,206 crore, or 1.39 percent of GDP.

The minister said the government, led by Prime Minister Tarique Rahman, aims to transform the curriculum to foster moral values, social responsibility, leadership, and human character among students. Plans include expanding technical and vocational education from grade six, introducing a mandatory third language, and providing loans up to Tk 10 lakh for students pursuing higher education abroad. Free education for girls up to the undergraduate level will continue.

The budget also prioritizes technology and AI-based learning through initiatives such as “One Teacher, One Tab,” multimedia classrooms, and free Wi-Fi expansion. The government targets raising education investment to 5 percent of GDP in the coming years.

State Minister for Fisheries and Livestock Sultan Salauddin Tuku has directed that the ongoing pilot project for the expansion of purebred Black Bengal goats and native sheep be extended to all districts of Bangladesh. He made the announcement while addressing an orientation meeting of the Department of Livestock Services at the Bangladesh Agricultural Research Council seminar hall on Thursday.

The minister said the project aims to make small and marginal farmers economically self-reliant by promoting high-quality local breeds. He emphasized that the initiative will strengthen rural economies and improve living standards. Tuku also highlighted the importance of field-level officers in training and motivating farmers to adopt modern livestock management practices, including proper care, disease control, and responsible antibiotic use.

He further noted that the Black Bengal goat is a valuable indigenous breed with high reproductive capacity and strong market demand, making it a profitable livelihood source for rural communities. The meeting was chaired by Director General Md. Shahjahan Khan and attended by ministry officials, researchers, and farmers.

The proposed national budget for fiscal year 2026–27 in Bangladesh includes significant tax and duty increases on several products. The plan raises the price limits for all cigarette categories and proposes a 300 percent supplementary duty on cigarette filter raw materials and 350 percent on nicotine. Locally produced alcohol would face a value-added tax of 500 taka per liter, while domestically produced liquor would also carry a 500 taka supplementary duty per liter. Import duties on cashew nuts are set to rise from 5 percent to 25 percent, which could raise market prices.

The proposal also increases taxes on luxury petrol, octane, and diesel vehicles, particularly those with 1200–1600 cc engines, and doubles the advance income tax on them. In contrast, the budget suggests lowering overall duties and taxes on imported electric vehicles, reducing the current 93 percent rate to 64 percent for EVs priced up to 25,000 dollars and 80 percent for those between 25,000 and 50,000 dollars. Advance tax on EV registration and fitness renewal may also be reduced.

Additional measures include higher VAT on certain steel products, a 20 percent supplementary duty on imported pangas fish fillets, annual advance income tax on helicopters, and an increase in gambling income tax from 20 to 25 percent.

Bangladesh and China have signed an implementation agreement to construct the 9th Bangladesh-China Friendship Bridge, aimed at improving road connectivity and regional economic activity in the southern region. The signing ceremony took place on Thursday at the conference room of the Road Transport and Highways Division. Dr. Md. Mokhsed Ali, Joint Secretary of the division, signed on behalf of Bangladesh, while Mr. Song Yang, Counselor of the Chinese Embassy in Dhaka, signed for China. Senior officials from both governments attended the event.

The proposed bridge will be built over the Lohalia River near Boga Ferry Ghat in Patuakhali district, along the Lebukhali–Bauphal–Galachipa–Amragachia highway. The total project length is about 2.62 kilometers, including a 1.348-kilometer main bridge and a 1.272-kilometer approach road. China will provide grant funding for the bridge and approach road construction, while Bangladesh will cover land acquisition and utility relocation costs.

Following the agreement, a Chinese-designated institution will prepare the detailed design and finalize the development project proposal. Once completed, the bridge is expected to significantly reduce travel time and costs, enhance trade and transport, and contribute to the socio-economic growth of southern Bangladesh.

US President Donald Trump said he 'likes inflation' as the country experiences its fastest price rise in three years. According to the US Bureau of Labor Statistics, the Consumer Price Index rose 4.2 percent in May compared to a year earlier, up from 3.8 percent in April. The increase was mainly driven by higher energy costs linked to the ongoing US-Israel war with Iran. Speaking at the White House, Trump said he liked the numbers and promised that prices would fall sharply once the war with Iran ends.

On the same day, Trump announced that US forces had seized millions of barrels of oil from Iran in overnight operations, which slightly reduced oil prices. Later, he told the New York Post that his remarks were taken out of context and that he meant inflation was lower than expected despite the war. Inflation has now risen for three consecutive months, with energy bills up nearly 25 percent from a year earlier. Opposition leaders, including Senate Democratic Leader Chuck Schumer, sharply criticized Trump’s comments.

Economists warned that even if the war ends soon, supply disruptions through the Strait of Hormuz could persist until 2027. The Federal Reserve faces pressure ahead of its rate-setting meeting next week, though analysts expect rates to remain between 3.5 and 3.75 percent.

The Cabinet has approved the proposed national budget for the 2026–27 fiscal year in a special meeting held at the National Parliament on Thursday morning. The session, chaired by Prime Minister Tarique Rahman, began around 10:15 a.m. and endorsed the budget proposal. Following Cabinet approval, President Md. Shahabuddin is expected to sign the authorization schedule before Finance Minister Amir Khosru Mahmud Chowdhury presents the budget at 3 p.m.

This marks the first budget under Prime Minister Tarique Rahman’s administration and also the first for Finance Minister Amir Khosru Mahmud Chowdhury. The proposed budget size is estimated at Tk 9.38 trillion, with a revenue target of Tk 6.95 trillion and a deficit of Tk 2.43 trillion. The GDP growth target is set at 6.5 percent, while inflation is projected at 7.5 percent.

The proposal includes raising monthly allowances for persons with disabilities to Tk 1,000, requiring tax return certificates for opening bank accounts and purchasing motorcycles, and increasing stipends for families of decorated freedom fighters by Tk 5,000.

Bangladesh’s apparel exports to the United States dropped sharply by 17.21% in April 2026 compared with the same month a year earlier, according to data from the US Office of Textiles and Apparel (OTEXA). The decline follows earlier signs of recovery in the sector, which contributes over 80% of Bangladesh’s total export earnings. Between January and April 2026, total apparel exports to the US reached USD 2.98 billion, down 11.24% year-on-year, with both unit prices and export volumes decreasing.

Industry representatives attributed the fall mainly to tariffs imposed by the Trump administration, which raised costs and reduced consumer demand. Analysts noted that overall US apparel imports fell 12% due to high inflation and interest rates, while Vietnam and Cambodia increased their exports to the US by 1.31% and 14.07%, respectively. In contrast, China’s and India’s exports to the US dropped by 50.21% and 28.03%.

Export Promotion Bureau data showed Bangladesh’s total exports in May 2026 fell 7.07% year-on-year to USD 4.4 billion, with apparel exports down 8.29%. Industry leaders warned that it remains uncertain when export growth will resume under current global conditions.