Bangladesh’s banking sector is grappling with a growing crisis due to a sharp increase in non-performing loans (NPLs). As bad loans surge, banks are failing to maintain required provisions, creating a record shortfall of Tk 170,655 crore as of March 2025. Capital reserves have plunged to historic lows, limiting investment capacity. Corruption during the previous government’s tenure worsened the issue. Although reforms are underway, unrecovered and laundered funds have weakened financial foundations, reducing profits and increasing loan interest rates across the economy.

Brent crude prices rose to $80 per barrel on Sunday, a 3.9% increase, while U.S. crude climbed 4.3% to reach $77 per barrel. The market volatility followed heightened military tensions, including Iran’s recent missile attack and its parliament's call to close the Strait of Hormuz. The rise in oil prices impacted financial markets: the S&P 500 futures dropped by 0.6%, and U.S. Treasury bond prices slightly declined.

Over two-thirds of Bangladesh’s foreign loans disbursed in the first 11 months of FY2024 were used to repay previous debts, according to the ERD. Out of $5.6 billion received, $3.78 billion went toward servicing past loans. Loan disbursements fell by over 20% compared to last year, while debt repayment rose by 23%. Sluggish project implementation has also slowed new disbursements. Loan commitments from development partners dropped nearly 31%. Despite export and remittance growth, the government faces rising debt pressure and reduced foreign loan demand in the next budget.

The Bangladesh Investment Development Authority (BIDA) and the Bangladesh Economic Zones Authority (BEZA) are prioritizing four key areas to accelerate investment growth, according to Executive Chairman Chowdhury Ashiq Mahmud bin Harun.

In a recent statement, he said, “Our top priorities are the fast-tracking of high-impact investment projects, enhancing and expanding one-stop services, resolving investor concerns swiftly, and building a strong pipeline of large-scale investments.”

Despite the current administration being interim in nature, Mahmud stressed that the government remains committed to sustaining investment momentum. “We are working tirelessly to assure investors that their investments in Bangladesh will be safe, supported, and profitable,” he added.

Bangladesh is planning to build an international-standard dockyard at Matarbari to enhance maritime infrastructure and promote the blue economy. Brigadier General (Retd.) Dr. M Sakhawat Hussain highlighted the need for modern hydrographic surveys and nautical charting during a seminar in Dhaka. The initiative aims to support safe navigation, climate adaptation, and sustainable development. Speakers emphasized the importance of hydrographic data in mega projects like the Matarbari Deep Sea Port and called for advanced mapping using autonomous underwater vehicles and modern technology.

Israel’s economy is under increasing strain as it grapples with simultaneous conflicts in Gaza, Lebanon, Yemen, and now direct confrontation with Iran. Defense spending has surged by 65% in 2024, reaching $46.5 billion, with 8.8% of GDP allocated to military expenses. Labor shortages are rising due to mass military deployments and revoked Palestinian work permits. Taxes have also increased to cover growing costs. While key sectors like technology remain stable, signs of stress are emerging. Experts warn that if the conflicts continue, Israel’s economic stability could falter despite current investor confidence.

Bangladesh is preparing to cancel India’s proposed 117-kilometer-long high-capacity power corridor project, citing concerns over grid security, environmental risks, and national interests.

Despite India's eagerness to begin construction this year and complete the project by 2028, Dhaka has decided to reconsider its involvement. Under the proposal, a 765kV transmission line would run from Borang Nagar in India's Meghalaya state through Parbatipur in Bangladesh, eventually reaching Katihar in Bihar. In return, India has offered to supply Bangladesh with an additional 1,000 megawatts of electricity.

While the Hasina administration initially moved forward with the plan, many engineers within Bangladesh’s Power Division raised objections, warning of potential threats to national security and risks of large-scale blackouts. Now, with growing resistance and critical assessments, the government has opted to review the project with the possibility of scrapping it altogether.

Global shipping giant Maersk has suspended services at Israel’s Haifa Port due to escalating regional conflict, especially after Israel’s airstrikes on Iran and Iran’s retaliatory missile attacks. The move raises fresh concerns over global trade routes, as key maritime passages like the Strait of Hormuz have become increasingly risky. Other Maersk operations in the region remain unaffected. Meanwhile, tanker shipping costs have surged sharply, with rates doubling within days, indicating the broader economic fallout of the ongoing Middle East tensions.

The World Bank has approved a $640 million loan for Bangladesh to strengthen energy security and improve air quality.

Gail Martin, the World Bank Country Director for Bangladesh, stated, “It is crucial to address the challenges of limited gas supply and urban air pollution in Bangladesh. These two projects will contribute to economic growth, enhance productivity, and create employment opportunities.”

Of the total, $350 million will be allocated to enhance energy sector security, while $290 million will be used for the Clean Air Project, which aims to adopt a comprehensive approach to tackling air pollution.

The Swiss National Bank has reported that deposits by Bangladeshi nationals in Swiss banks surged by 33 times in 2024, the year of the mass uprising, reaching an estimated BDT 8,500 crore.

Experts suggest the dramatic rise is linked to capital flight triggered by fears of regime collapse and the widespread corruption and money laundering that occurred during the Awami League’s rule.

The Asian Development Bank (ADB) has approved a $500 million policy-based loan to support stabilization and reform in Bangladesh’s banking sector under the "Stabilizing and Reforming the Banking Sector Program – Subprogram 1."

Economic expert Sanjeeb Kaushik commented, “The major obstacles in Bangladesh’s banking sector are poor asset quality, liquidity shortages, and limited financial intermediation. This ADB initiative will enhance regulatory oversight and accountability in line with international standards and improve credit flow to SMEs.”

Keeping pace with the digital era, Bangladesh Bank has simplified the process for local companies to pay for advertisements on foreign platforms like Facebook and Google. Under the new policy, businesses can make payments through local advertising agencies without needing separate central bank approvals.

Banks are now authorized to process these payments on behalf of clients, provided that certain formalities are completed. Experts believe this move will make remittance procedures more seamless and business-friendly.

Defaulted loans in Bangladesh have nearly doubled in the last nine months, reaching Tk 4.2 trillion. In just three months, non-performing loans (NPLs) rose by Tk 745.7 billion, far outpacing overall loan growth. Key causes include loan rescheduling, reclassification of large loans, non-renewal of working capital loans, missed rescheduled payments, and interest accumulation on existing defaults. Private banks are worst affected, with some seeing NPL rates up to 98%. Experts urge asset seizures and special tribunals to restore banking sector health.

Despite rising global fuel prices driven by escalating tensions between Iran and Israel, the Bangladesh government currently has no plans to increase domestic fuel prices, according to Economic Advisor Dr. Salehuddin Ahmed.

Dr. Ahmed stated that while the global energy market is being affected by the ongoing conflict, the government is closely monitoring the situation and preparing for potential impacts on imports. "We are observing the developments carefully. If the conflict persists, it could affect the prices of imported goods, including fuel and fertilizer, as most of our imports pass through the Strait of Hormuz," he explained.

However, he assured that there is no immediate cause for concern. “The government does not believe there is a need to worry just yet. We remain hopeful that the conflict will not become prolonged,” he added.

The Anti-Corruption Commission (ACC) has formally requested assistance from the UK's National Crime Agency (NCA) to confiscate assets allegedly acquired illegally by Anisuzzaman Chowdhury Roni, brother of a former land minister, and Mohammad Adnan Imam, former chairman of NRB Commercial Bank. ACC Chairman Mohammad Moinuddin Abdullah claimed the duo laundered large sums of money and invested heavily in UK properties. He also mentioned investigations into corruption allegations involving MP Tulip Siddiq and former UK High Commissioner Saida Muna Tasneem and her husband.