Banks in Bangladesh are increasingly relying on loan rescheduling to reduce non-performing loans, but the strategy has not lowered defaults. According to the Bangladesh Bank’s Financial Stability Report 2025, total rescheduled loans stood at Tk 4.46 trillion, with the largest share in industrial term loans. About 39.87 percent of these rescheduled loans have again turned non-performing, highlighting persistent repayment challenges.

The report shows that industrial term loans accounted for 29.56 percent of all rescheduled loans, followed by the ready-made garments and textile sector at 17.56 percent. Private banks held 74.16 percent of the total rescheduled loans, while state-owned banks accounted for 23.27 percent. Experts cited weak loan assessment, political influence, and reduced down payment requirements as key reasons behind repeated defaults. They also noted that energy shortages and high dollar prices have strained manufacturing borrowers.

Economists and bankers emphasized that while rescheduling offers temporary relief, sustainable recovery depends on stronger loan monitoring, business revival, and export growth. They urged that rescheduling benefits be limited to genuinely distressed enterprises to prevent misuse.

Iran continues to face major obstacles in recovering billions of dollars in assets frozen across multiple countries, a long-standing issue in its strained relations with the West. The matter remains central even in the recent memorandum signed between the United States and Iran aimed at ending hostilities. Tehran has sought access to these funds for years, but sanctions and banking restrictions have kept much of the money beyond its reach.

Estimates suggest Iran’s frozen assets range from about 27 billion to over 100 billion US dollars, including oil revenues, export earnings, and foreign reserves held in overseas banks. Large sums are blocked in China, Iraq, India, South Korea, and other countries, while only a smaller portion lies under US jurisdiction. Experts note that even partial access could significantly ease Iran’s inflation, currency depreciation, and economic isolation, but warn that legal and political complexities will delay any real transfer.

The assets remain dispersed and entangled in decades-old disputes, with Washington’s approval seen as crucial for any release, leaving Tehran’s economic relief uncertain.

The Bangladesh government borrowed about Tk 330 billion more than its target from the banking system during the 2025–26 fiscal year to cover a widening budget deficit. According to updated data from Bangladesh Bank, the government’s net bank borrowing reached over Tk 1.37 trillion by June 23, exceeding the original budget target of Tk 1.04 trillion. The revised budget had raised the borrowing goal to Tk 1.18 trillion.

Officials attributed the higher borrowing to a significant shortfall in revenue collection, slower-than-expected foreign loan inflows, and increased public expenditure. The National Board of Revenue reportedly fell short of its revenue target by about Tk 880 billion. Bangladesh Bank data showed that net government borrowing from banks rose by Tk 297.46 billion, or 27.71 percent, compared with the same period a year earlier.

At the end of the fiscal year, total government debt from the banking sector stood at Tk 6.88 trillion, up from Tk 5.51 trillion a year earlier. For the new 2026–27 fiscal year, the government has set a bank borrowing target of Tk 1.12 trillion.

Bangladesh’s Power Division has directed all electricity distribution companies to promptly resolve customer complaints regarding excessive electricity bills for June. The directive was issued during a review meeting held on July 2, chaired by Power Division Secretary Mirana Mahroukh via Zoom, with senior ministry officials, divisional commissioners, deputy commissioners, and distribution company representatives in attendance. Customers have been urged to contact their respective distribution companies or designated hotlines to report billing issues.

The meeting followed widespread reports in media and social networks that many consumers across the country received inflated bills. While deputy commissioners said they had not received significant complaints, the Power Division emphasized immediate correction of any clerical or technical errors. It also warned that any proven misconduct by officials or employees would result in strict legal action.

The meeting also reviewed load-shedding conditions and progress of rooftop solar power programs at the district level. Distribution companies were instructed to enhance customer service and ensure quick resolution of verified complaints.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan announced that the initial public offering (IPO) process will be simplified to attract more companies to the capital market. Speaking at a Dhaka Brokers Association event on July 2, 2026, he said BSEC will meet with the Dhaka Stock Exchange, ICMAB, and merchant banks within two weeks to discuss reforms. Khan noted that IPO approvals currently lack transparency and tracking, discouraging firms from seeking market funding.

He emphasized reducing regulatory bottlenecks and empowering stock exchanges to perform their responsibilities independently. The chairman also announced plans to replace full quarterly financial reports with condensed versions following international standards, and to transition BSEC operations from paper-based to fully digital systems using XBRL and XML-based reporting. He urged lower listing fees and stronger digital trading mechanisms to prevent signature misuse.

Khan further highlighted the need for investor education, simplification of capital gains tax procedures, and effective enforcement through specialized tribunals. Market participants at the event supported deregulation and faster IPO approvals to revive market activity.

Barrister Asaduzzaman Fuad, General Secretary of the Amar Bangladesh Party (AB Party), has warned that the conflicting stance between the government’s expansionary national budget and Bangladesh Bank’s contractionary monetary policy could push the economy into a deeper crisis. He made the remarks in a statement issued on Thursday in response to the central bank’s newly announced monetary policy.

Fuad said the simultaneous adoption of a debt-dependent budget and a strict monetary policy aimed at controlling inflation reflects serious policy incoherence within the government. He argued that this contradiction would harm ordinary citizens, entrepreneurs, and investors. According to him, the government has failed to address fundamental issues such as reducing production costs, breaking market syndicates, curbing corruption, and strengthening supply chains, which are essential to controlling inflation.

He further stated that inflation in Bangladesh is primarily driven by rising costs and supply shortages, which cannot be solved merely by raising interest rates. Fuad urged the government to acknowledge the real economic situation, ensure easier financing for genuine entrepreneurs, and adopt a coordinated, long-term economic plan to stabilize inflation, boost investment, and reduce living costs.

Bangladeshi-made cosmetics are now being used in Thailand’s beauty market, marking a shift from the past dominance of Thai products in Bangladesh. Improved production capacity and quality have enabled Bangladeshi brands to enter Thailand’s retail and e-commerce platforms such as Lazada Thailand and local pharmacies. Distributors report growing Thai consumer interest in natural, high-quality, and competitively priced skincare and cosmetic products from Bangladesh.

Industry sources note that Bangladesh’s cosmetics sector has transformed over the past decade through modern production technologies, international-grade raw materials, research and development, and advanced packaging. Companies like Remark HB Limited, which exports brands such as Neor, Ciodil, and Lily, are now reaching multiple international markets including Thailand, the United States, India, and the UAE. Sector leaders view this as recognition of Bangladesh’s global manufacturing capability.

Experts believe that continued adherence to international standards could expand exports further. However, they warn that domestic policy disparities in VAT and taxation are slowing the industry’s growth, urging government reforms to ensure sustainable development.

Bangladesh’s export earnings rose by 25.91 percent in June 2026 compared with the same month a year earlier, according to a provisional report released by the Export Promotion Bureau (EPB) on Thursday. The country earned 4.20 billion US dollars from merchandise exports in June, up from 3.33 billion dollars in June 2025. The strong monthly growth was driven mainly by the ready-made garment sector, which earned 3.38 billion dollars, marking a 21.52 percent increase year-on-year.

Within the apparel segment, knitwear exports rose 19.49 percent to 1.84 billion dollars, while woven garments grew 24.2 percent to 1.55 billion dollars. Other sectors also performed strongly: home textiles rose 59.95 percent to 75.1 million dollars, leather and leather goods increased 47.68 percent to 128.8 million dollars, and agricultural products climbed 46.77 percent to 89.6 million dollars.

Despite June’s robust performance, total export earnings for the 2025–26 fiscal year fell 0.58 percent from the previous year to 48.00 billion dollars. EPB data suggest that while the June surge offers optimism for the new fiscal year, exporters face ongoing challenges from global demand uncertainty, geopolitical instability, and rising competition.

The Bangladesh Energy Regulatory Commission (BERC) has announced a new reduction in liquefied petroleum gas (LPG) prices for consumers across the country. The price of a 12-kilogram LPG cylinder has been lowered by 357 taka to 1,528 taka, effective from Tuesday evening. The commission also reduced the price of autogas from 86.93 taka to 70.40 taka per liter.

This latest adjustment follows an earlier price cut on June 2, when BERC reduced the price of a 12-kilogram LPG cylinder from 1,940 taka to 1,885 taka and autogas from 89.50 taka to 86.93 taka per liter. The commission periodically revises LPG and autogas prices to reflect changes in market conditions.

The new rates are expected to provide some relief to consumers and transport operators as energy costs continue to fluctuate in the domestic market.

Islami Bank Bangladesh PLC has launched a month-long campaign titled 'Customer Service Month' under the slogan 'Building Tomorrow’s Bangladesh through Welfare-Oriented Banking.' The program was inaugurated on July 1, 2026, at Islami Bank Tower by Acting Managing Director Md. Altaf Hossain as the chief guest. Additional Managing Director Engineer Mohammad Jamal Uddin Majumder attended as special guest, while the event was presided over by Additional Managing Director Dr. M. Kamal Uddin Jasim. Senior executives, including deputy managing directors and zonal heads, joined the event both in person and virtually.

During his remarks, Md. Altaf Hossain stated that all branches, sub-branches, agent outlets, and digital banking services of Islami Bank are operating normally. He noted that remittance customers are receiving uninterrupted services and that many clients who had previously closed their accounts have returned, reflecting renewed trust in the institution. He described Islami Bank as a strong and stable financial organization committed to transparency, accountability, good governance, and professionalism.

The campaign aims to enhance customer engagement and reinforce confidence in the bank’s welfare-based financial services.

The National Board of Revenue (NBR) announced that its e-VAT system will remain unavailable until 5 PM on Friday, July 3, due to ongoing system upgrade work. According to a notice issued by the NBR’s e-VAT unit on Thursday, the upgrade process began at 6 AM Thursday and will continue until Friday evening. During this period, users will not be able to upload any data to the system.

The upgrade aims to introduce several key improvements, including enhancements to the Mushak-9.1 form and the addition of a new option in Note 15 for entering ‘reverse charge’ inputs under Section 20(2). The name of BOE data will be changed to “Input Against Bill of Entry,” and the system’s title will shift from iVAT to eVAT. Additionally, the DDO function and master data list function are being improved, incorporating updated VAT office jurisdiction mapping and revised search criteria for issue and expiry dates.

For users submitting returns through APL, the return submission process and BOE data processing within VAT software are also being upgraded to improve performance and accuracy.

Iran has accelerated its oil exports following a temporary easing of US sanctions, gaining a 60‑day window to secure new buyers and generate vital revenue. According to Bloomberg, more than 20 million barrels of Iranian crude have been floating in Asian waters for at least a week, an 18 percent increase from the previous week. Data from Vortexa and Bloomberg show that since the sanctions were lifted last week, Iran’s total seaborne oil volume has reached between 58 and 68 million barrels, including both in‑transit and waiting cargoes.

About 90 percent of these floating cargoes have no confirmed destination, with many ships awaiting orders or listing Singapore as a placeholder port, a tactic often used for ship‑to‑ship transfers near the Malacca Strait. The sanctions relief came as part of an interim peace agreement, with Washington lifting restrictions on Iranian oil and ports in June. Tehran now has until mid‑August to finalize new buyers.

Iran reported that since the US naval blockade was lifted, it has shipped over 40 million barrels of oil to various countries, potentially strengthening its economic position and leverage in ongoing talks with Washington.

Bangladesh Bank has approved the introduction of forward rate contracts to mitigate interest rate fluctuation risks in import trade. The facility will apply to usance imports under suppliers’ and buyers’ credit arrangements. A circular issued on Thursday stated that authorized dealer banks may enter into forward rate contracts with importers borrowing in foreign currency to protect them from international benchmark rate volatility, particularly the Secured Overnight Financing Rate (SOFR).

According to the circular, the contracts must be used solely for risk management and linked to genuine import transactions, prohibiting speculation or uncovered positions. Banks must fully offset any exposure through same-day reverse transactions, ensuring no market risk on their own accounts. The central bank capped banks’ pricing margin at 10 basis points and limited total forward rate contracts to 25 percent of the average monthly foreign currency inflow over the past 12 months.

The directive also requires adherence to international contract standards, daily mark-to-market valuation, effective internal risk management, and proper documentation. Industry participants believe the measure will help importers manage interest rate uncertainty and foster the development of a regulated financial derivatives market in Bangladesh.

The International Monetary Fund (IMF) has reduced Israel’s projected economic growth for 2026 to 3.5 percent, down from its earlier forecast of 4.8 percent. The revision, published on Wednesday, attributes the downgrade to ongoing tensions and geopolitical uncertainty across the Middle East. The IMF report highlights that wars in Gaza, Lebanon, and Iran are exerting negative pressure on Israel’s economy, though it has shown resilience so far.

According to the IMF, persistent regional instability and long-standing structural issues are expected to weigh on Israel’s growth in the near term. The report warns that renewed escalation of regional tensions could pose significant risks to the economy. It also notes that rising energy prices and supply constraints may push inflation higher, even as the Israeli shekel has reached its strongest level against the U.S. dollar in over three decades.

The IMF projects that Israel’s growth could rebound to 4.4 percent in 2027, with inflation stabilizing around 2 percent in both 2026 and 2027. The forecast is based on data available up to June 10.

Turkey’s defense and aerospace exports rose sharply between June 1, 2025, and May 31, 2026, reaching 10.9 billion dollars, a 47.1 percent increase compared to the previous year’s 7.4 billion dollars. The growth was driven largely by higher demand from NATO member countries, where exports totaled 6.2 billion dollars, accounting for 57.3 percent of Turkey’s total defense and aerospace exports.

During this period, Turkey exported defense and aerospace products to 178 countries. The top three destinations were NATO allies, reflecting Turkey’s expanding defense industry cooperation within the alliance. The increase was attributed to international outreach, bilateral meetings, and defense industry diplomacy coordinated by Turkey’s Defense Industry Secretariat.

Turkey has strengthened its position not only as a supplier of defense products but also as a developer of technology, a promoter of joint production models, and a long-term partner to its allies, according to the report.