Finance Minister Amir Khosru Mahmud Chowdhury stated that Bangladesh’s interest payment expenses have increased thirteenfold over the past twenty years. In the 2005–06 fiscal year, the government spent 8,500 crore taka on interest payments, which rose to 1,14,700 crore taka in the 2023–24 fiscal year. He made the disclosure on Thursday while presenting the national budget.

The proposed budget for the upcoming fiscal year is set at 9,38,000 crore taka, with a revenue target of 6,95,000 crore taka. This leaves a deficit of 2,43,000 crore taka. To bridge this gap, the government plans to raise funds from both domestic and foreign sources.

The report also notes that while the budget includes positive aspects, several business organizations have called for additional policy support to strengthen the investment environment.

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.

Colombian President Gustavo Petro compared Israel’s occupation to Nazi forces during a United Nations Security Council meeting on Wednesday. He sharply criticized Israel’s military operations in Gaza, saying thousands of people, including children, had been killed by Israeli missile strikes. Petro stated that no political or economic interests could hide this reality and warned that the world was returning to a Nazi-like era.

Israeli Foreign Minister Gideon Sa’ar condemned Petro’s remarks, calling him an anti-Semitic president who was deliberately trivializing the memory of the Holocaust. The exchange highlighted growing tensions between Colombia and Israel over the Gaza conflict.

Colombia is scheduled to hold its presidential election on June 21, but Petro is not seeking re-election, according to the report sourced from Middle East Monitor.

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.

A proposal has been made to require submission of an income tax return certificate for candidates seeking election as Union Parishad (UP) chairman in Bangladesh. According to the proposed amendment to the Income Tax Act 2023, individuals who fail to provide proof of tax return submission will not be eligible to contest the election. The amendment adds the UP chairman election to the list of activities requiring such documentation under Section 264 of the law.

Currently, candidates for municipal, upazila, district council, city corporation, and national parliamentary elections must already submit proof of income tax return filing. If the proposed amendment is passed by parliament, the new requirement for UP chairman candidates will take effect from next year.

The measure aims to expand the scope of tax compliance among public office aspirants and align local-level elections with existing financial accountability standards.

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.

Qatari negotiators have departed Tehran after completing discussions focused on the ongoing conflict situation in the Middle East. A diplomat confirmed to AFP on Thursday that the talks, which continued until early morning, involved Iranian officials and were conducted in coordination with the United States.

The meeting took place at a time of heightened tension, as the United States and Iran have recently carried out retaliatory attacks against each other. The discussions were aimed at addressing the escalating hostilities and exploring possible de-escalation measures, though no specific outcomes were disclosed.

The timing of the Qatari delegation’s departure underscores the urgency of diplomatic efforts to manage the volatile regional situation, but the source did not provide details on any agreements or next steps.

Italian Prime Minister Giorgia Meloni has said the European Union should be ready to impose new sanctions on Iran if the Middle East crisis does not ease. Speaking in parliament, she stated that if Tehran continues on the wrong path, the EU must be prepared to increase pressure through new targeted measures.

Meloni also sharply criticized remarks made by Israel’s far-right National Security Minister Itamar Ben-Gvir about Italy, calling them unacceptable for Italy and degrading for Israel. Her comments came as European countries continue discussions on adopting a tougher stance toward Iran amid escalating regional tensions.

The statement reflects growing concern within Europe about the direction of Iran’s policies and the broader instability in the Middle East, with EU members considering coordinated responses to maintain regional security.

Jamaat-e-Islami’s central assistant secretary general Muhammad Shahjahan claimed that efforts are underway to destroy the global Islamic economic model, not just one bank. Speaking at a press conference at the party’s Chattogram city office in Dewan Bazar on Thursday, he said attempts to seize control of Islamic Bank and hand it to former owners would not be allowed. He urged depositors and supporters to defend the Islamic banking system.

Shahjahan further stated that the expected change following the national election after the July revolution had not materialized. He alleged that signs of fascism were visible in the current government’s activities, which began within its first 100 days in power. He also criticized the government for failing to hold local elections and instead appointing partisan administrators, calling it undemocratic.

The press conference announced that an eleven-party alliance will hold a grand rally on June 13 at Laldighi Maidan in Chattogram, demanding implementation of the referendum verdict, relief from public suffering, and control of commodity prices. Opposition leader Dr. Shafiqur Rahman will attend as chief guest, with Colonel (Retd.) Oli Ahmed as the main speaker.

The Bangladesh Election Commission (EC) has finalized a new draft code of conduct ahead of upcoming local government elections, including city corporations, municipalities, upazilas, district councils, and union councils. The draft imposes a strict ban on the misuse of artificial intelligence (AI), deepfake technology, and the participation of high-profile figures such as the prime minister, ministers, and members of parliament in election campaigns. The proposal, signed by EC Senior Secretary Akhtar Ahmed, was published on the commission’s website for public and stakeholder feedback.

The draft introduces several new provisions to prevent technology abuse and ensure free and fair elections. Violations could lead to immediate cancellation of candidacy, with penalties including up to six months’ imprisonment or a fine of up to 50,000 taka. The rules also restrict social media use, sound levels, campaign materials, and public rallies. Candidates must register their social media accounts, and campaign noise is limited to 60 decibels. Use of helicopters, live animals, or government resources for campaigning is strictly prohibited.

The EC’s move signals an unprecedented effort to regulate digital campaigning and maintain electoral integrity across Bangladesh’s local elections.