United News of Bangladesh

Bangladesh Jewellers Association (Bajus) has raised the price of gold in the domestic market by a significant margin, fixing the price of 22-karat gold at Tk 232,930 per bhori, including VAT, with an increase of Tk 9,856. The new price came into effect from 10 am on Thursday, according to a notification issued by the association. Bajus said the decision was taken in line with the rising price of pure gold in the local market, which prompted the overall price adjustment. Under the new rate, 21-karat gold will now cost Tk 222,491 per bhori, 18-karat gold Tk 191,056 per bhori, and traditional gold Tk 156,064 per bhori, all inclusive of VAT, the notification said. The revised prices will remain effective at all jewellery outlets until further notice, Bajus said, adding that making charges will apply separately depending on the design of the ornament. Since VAT is already included in the sale price of gold and silver jewellery, it cannot be collected separately from customers, the association said. The existing Bajus rules for exchange and purchase of ornaments, excluding specified VAT, making charges and stone costs, will remain unchanged. The previous adjustment was made on July 31, when the price of 22-karat gold was increased by Tk 2,216 per bhori to Tk 223,074, including VAT. At the time, 21-karat gold was priced at Tk 213,043 per bhori, 18-karat at Tk 182,950, and traditional gold at Tk 149,474 per bhori, effective from 10:30 am that day. With Thursday's revision, the price of gold has been adjusted 98 times so far this year in the domestic market, with 48 upward revisions, 49 downward revisions, and one VAT-related adjustment, according to Bajus data. Alongside gold, the price of silver was also raised. The price of 22-karat silver was increased by Tk 292 per bhori to Tk 4,899, including VAT. The price of 21-karat silver was set at Tk 4,666 per bhori, 18-karat at Tk 4,024, and traditional silver at Tk 3,033 per bhori. So far this year, the price of silver has been adjusted 61 times, with 31 increases and 30 decreases, Bajus said.

City Bank PLC has now connected with 50 major banks in 17 countries in live transactions in both sending and receiving roles under SWIFT's new retail cross-border payment scheme. As a result, remitters can send remittances directly to Bangladesh, and e-commerce entrepreneurs can receive their product payments from 17 countries directly to their accounts. But when sending payments abroad, some rules and regulations of the Bangladesh Bank must be followed. City Bank has become the first bank in Bangladesh and globally to successfully validate and execute live transactions. The milestone was achieved within five months of City Bank joining the initiative in February 2026. The bank completed its first outgoing transaction in one minute and subsequent transfers in just 57 seconds on June 22, 2026. On June 23, acting as a recipient, City Bank coordinated with India’s HDFC Bank to clear and route an incoming transfer from India to another local bank in Bangladesh. The global framework, introduced by SWIFT to align with G20 objectives for cross-border payments, addresses traditional delays, high costs, and hidden intermediary fees in international remittances. Over 50 major banks across 17 countries, including the US, the UK, China, India, Germany, Australia, Spain, Thailand, Canada, and the Middle East, have committed to adopting the system. City Bank is currently the sole participant from Bangladesh. The new scheme offers guaranteed full-value transfers without deductions, upfront fee transparency, end-to-end tracking, faster settlement, and 24/7 gateway availability for retail customers and small businesses. City Bank’s global achievement has recently been recognised at an event titled "Streamlining inward remittances and enhancing operational efficiency across Bangladesh's financial sector," jointly organised by SWIFT and the Association of Bankers Bangladesh (ABB).  

Bangladesh Bank (BB) has removed the long-standing caps on loan disbursements across five crucial corporate branches of state-owned Sonali Bank PLC, allowing them to resume lending to large and eligible borrowers upon thorough scrutiny. The central bank’s decision fully eliminates loan disbursement ceilings for Sonali Bank's Local Office, Foreign Exchange Corporate branch, Shilpa Bhaban Corporate branch and Shaheed Abrar Fahad Avenue Corporate branch in Dhaka, and the Laldighi Corporate branch in Chattogram. Following a recent application, the central bank has withdrawn the embargo. Before this directive, these branches faced strict credit restrictions, with loan caps ranging between Tk 5 crore and Tk 20 crore depending on the branch. Following the removal of these barriers, all branches under the state-owned lender are now empowered to process and issue loans to qualified clients in accordance with standard risk-assessment guidelines. According to sources, Sonali Bank had formally requested Bangladesh Bank to withdraw the restrictions to boost credit flow to the private sector and better cater to major corporate clients. The bank explained in its application that while most of its high-value, reputable clients maintain accounts with these five key branches, the credit ceilings prevented the bank from meeting their financial requirements. The central bank subsequently approved the request. However, Bangladesh Bank instructed the commercial lender to strictly enforce proper due diligence during new loan approvals and maintain strong caution against controversial or high-risk borrowers. A senior official at Sonali Bank noted that the credit caps previously forced the bank to turn away many creditworthy clients. With the limitations lifted, the bank can now process loans for eligible applicants through standard procedures. The lending restrictions were originally imposed on these key branches several years ago as part of a state-owned bank reform programme supported by the World Bank. Surveillance and credit controls were further tightened in the wake of the landmark Hall-Mark loan scam. Earlier in June, Bangladesh Bank relaxed the ceiling for the Local Office branch, raising its lending limit from Tk 5 crore to Tk 20 crore. Following a subsequent request submitted by Sonali Bank in July, the central bank decided to lift all remaining restrictions across the five branches.

A cybersecurity drill conducted in June uncovered vulnerabilities in the banking sector that could have led to a major cyber incident, Bangladesh Bank Governor Md Mostaqur Rahman said on Tuesday. He said the country's transition towards a digital economy has kept the authorities in a constant state of concern over cybersecurity. The central bank governor was speaking at the inaugural ceremony of the "Cyber Incident Reporting System" and the "National ICT and Cyber Security Rating System" at the BCC Auditorium in Agargaon. He said the central bank took part in a cyber drill in late June to assess the security preparedness of the banking sector. The drill identified one or two vulnerabilities that could have posed serious risks for major banks or institutions, Mostaqur said. "We are moving towards a digital economy, talking about building a cashless society, and expanding transactions through QR codes," he said, expressing hope that the newly launched Cyber Incident Reporting System will play a significant role in generating early warnings for the banking sector. The central bank chief thanked the National Cyber Security Agency for its support in the initiative. He said the country's commercial banks have yet to reach the expected level of cybersecurity preparedness, adding that this shortfall remains a matter of concern for Bangladesh Bank. Speaking at the same event, Prime Minister's Adviser on Posts, Telecommunications and Information Technology Rehan Asif Asad said cyberattacks will not decline in the future but rather increase. He said the data security systems of government institutions are still at a primary stage, and called for coordinated efforts between the government and the private sector to strengthen them further.

Bangladesh's distributed energy resource (DER) sector is taking shape after a slow start, with industrial rooftop solar emerging as the single biggest driver of clean energy expansion across the country. Rooftop solar capacity in Bangladesh has grown faster than other distributed resources, helping to achieve a slight reduction in daytime power demand, according to a new briefing note released on Tuesday by the Institute for Energy Economics and Financial Analysis (IEEFA). While official government statistics put the installed rooftop solar capacity at 418.1 megawatts (MW) as of June 2026, IEEFA’s estimates reveal a much larger footprint. The study found that combined capacity across just 239 establishments—including major corporate groups—has already reached 667MW. If smaller units under 0.15MW are factored in, Bangladesh’s actual rooftop solar capacity could already be nearing 1,000MW. "Compared to the grid-scale variable renewable energy capacity of 859MW as of June 2026, the country’s growing rooftop solar capacity provides an encouraging signal for Bangladesh’s power sector," said Shafiqul Alam, Lead Analyst for Bangladesh Energy at IEEFA South Asia and co-author of the briefing note. The report highlighted strong momentum in the sector, noting that engineering, procurement, and construction (EPC) companies currently hold a project pipeline exceeding 500MW. Furthermore, the government’s latest strategy document sets a target of 10,450MW in new renewable capacity between 2026 and 2030, relying on rooftop solar for more than 50 percent (5,500MW) of that goal. Despite the presence of net metering guidelines and low-cost financing options, rising electricity tariffs have become the primary driver for industrial and commercial adoption of rooftop solar. However, high import duties continue to pose a significant barrier. Although the government revised its duty structure, the changes increased the import duty on industrial rooftop solar projects to 17 percent—up from 1 percent under the previous capital machinery provision—while leaving small rural projects unable to meet stringent conditions for duty benefits. Alam emphasized that a complete duty waiver across all rooftop solar projects would significantly enhance affordability and help Bangladesh meet its 2030 targets. Drawing from the successful experiences of Australia and India, the study recommends capital subsidies, duty exemptions, the gradual integration of smart meters, and battery storage alongside rooftop solar. In addition to rooftops, the report underscores the immense potential in Bangladesh’s diesel-reliant agricultural sector. Converting just one-third of the country's diesel-powered irrigation systems to solar power could slash Bangladesh’s annual diesel import bill by roughly US$244 million (Tk 3000 crore). To clear structural bottlenecks, IEEFA recommended that the Sustainable and Renewable Energy Development Authority (SREDA) and the Ministry of Power, Energy and Mineral Resources actively monitor online net metering applications to prevent bureaucratic delays that currently hinder progress. Drawing on the experiences of Australia and India, Bangladesh could promote the deployment of battery storage alongside DERs, particularly rooftop solar. “For predictability and better management on the part of utilities, Bangladesh should gradually adopt smart meters with DERs, like rooftop solar,” added Alam.  

State Minister for Primary and Mass Education Bobby Hajjaj on Tuesday said Bangladesh's strategic geographic location at the junction of South Asia and ASEAN offers Japanese investors a unique opportunity, noting that investment in Bangladesh could give Japan access to a regional market of more than 3 billion consumers. “Bangladesh is not just a promising investment destination but a strategic economic bridge between South Asia and ASEAN,” Bobby said while addressing the Bangladesh Investment Promotion Seminar in Osaka, jointly organised by the Japan External Trade Organization (JETRO), the Bangladesh Embassy in Japan, and the Osaka Chamber of Commerce and Industry. The state minister said progress on the Economic Partnership Agreement (EPA) between Bangladesh and Japan, along with the establishment of a special economic zone for Japanese investors, would elevate bilateral economic ties to a new height. He said these initiatives would play a groundbreaking role in expanding bilateral trade and investment and would ensure a more favourable environment for Japanese investors. Referring to Japan's Meiji Restoration, Bobby described it as an exemplary case of national transformation through education, technology, industrialisation and visionary leadership, adding that Bangladesh wants to build its future economy by drawing on Japan's development experience through knowledge, technology, innovation, productivity and skilled human resource development. He said Bangladesh's economy currently stands at more than $500 billion, having maintained growth above 6 percent for a long period and staying above 4.5 percent despite global economic challenges. “The government aims to elevate Bangladesh to a $1 trillion economy by 2034.” The state minister said Bangladesh's biggest competitive strength lies in its workforce of more than 70 million young people. He noted that with per capita income crossing $3,000, the domestic market is rapidly expanding and purchasing power is rising, creating new opportunities for foreign investors. Bobby said bilateral trade between Bangladesh and Japan currently stands at around $3.5 billion, with both countries aiming to raise it to $10 billion in the coming years. He identified machinery and light engineering, industrial components, automobile and electric vehicle (EV) parts, electronics, pharmaceuticals, API and medical equipment, diversified jute products, agro-processing, food security, cold-chain logistics, renewable energy, port and logistics infrastructure, industrial park development, robotics, education technology and skilled human resource development as promising sectors for Japanese investment. He also pointed to the potential for partnership with organisations such as Artec in education technology and skills development. Bobby said there is immense potential for cooperation between Bangladesh and Japan in education, skills development, healthcare and medical tourism. “Bangladesh's young, educated and skilled workforce can play a significant role in meeting Japan's growing labour shortage and the needs of its ageing population, creating scope for long-term partnership in skills development, technical training and employment between the two countries.” The state minister thanked Japan, including JICA, for working for decades as one of Bangladesh's most trusted development partners in infrastructure, education, human resource development and economic progress through various bilateral initiatives. Bangladesh and Japan are now entering a new era based on investment, trade, technology, innovation and shared prosperity, Bobby said, calling on Japanese businesses and investors to become long-term partners in Bangladesh's growth journey. Investing in Bangladesh, he said, means not just entering one country's market but a strategic opportunity to access a vast regional market of more than 3 billion consumers.

City Bank recorded a significant surge in profitability for the first half of 2026, posting a consolidated profit after tax of Tk 526.69 crore for the six months ended June 2026, according to a press release issued on Sunday. The half-yearly net profit marks a substantial growth from Tk 301.11 crore reported in the corresponding period of the previous year. The bank’s Consolidated Earnings Per Share (EPS) for the half-year ended June 2026 rose to Tk 3.01, up from Tk 1.72 in H1 2025. The performance figures were disclosed during the bank's digital Earnings Disclosure webcast held on Sunday to present its Q2 2026 financial results. The event drew participation from local and international investors, equity researchers, capital market analysts, and financial sector stakeholders. Mashrur Arefin, Managing Director and CEO of City Bank, presented the bank's strategic initiatives and future growth plans. Md. Mahbubur Rahman, Additional Managing Director and Chief Financial Officer, delivered a detailed breakdown of the financial metrics. The management team—including Deputy Managing Director (DMD) and Head of Wholesale Banking Mesbaul Asif Siddiqui, DMD and Head of Internal Control and Compliance AKM Saif Ullah Kowchar, and Chief Risk Officer Mohammad Firoz Alam—addressed questions from global participants during an interactive Q&A session.

Bangladesh Bank (BB) has reduced its key policy rate (repo rate) by 50 basis points to 9.50 percent from 10 percent, aiming to boost private sector credit flow, spur investment, and accelerate economic recovery and employment generation. The central bank issued a circular on Sunday (August 2) to the managing directors, chief executive officers, and administrators of all banks and finance companies, confirming that the new rates take effect immediately from August 2, 2026. The decision was taken at a meeting of the Monetary Policy Committee (MPC) held on July 30, 2026, superseding the earlier policy rate corridor set in February 2026. Under the re-aligned policy rate corridor, the upper limit—the Standing Lending Facility (SLF) rate—has also been slashed by 50 basis points to 11.0 percent from 11.50 percent. However, the lower limit of the corridor, the Standing Deposit Facility (SDF) rate, remains unchanged at 7.50 percent. According to the circular signed by Dr. Mohammad Monirul Islam Sarkar, Director of the Monetary Policy Department (MPD), the downward adjustment in policy rates is intended to facilitate private credit growth and create a more favorable environment for job-creating investments across the country.

Polish fashion retail giant LPP SA, famous for brands like Reserved, Cropp, and Sinsay, has suspended its apparel sourcing from Bangladesh following mounting payment disputes totaling around $40 million with local garment manufacturers. Industry insiders and leaders from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) confirmed that the Polish buyer halted fresh orders after local suppliers repeatedly raised allegations of delayed payments, discounts demanded after shipment, and non-settlement of outstanding dues. According to sources, dozens of Bangladeshi apparel exporters have been suffering from financial strain as LPP SA withheld payments worth approximately $40 million for goods already manufactured or shipped. While some suppliers claim the buyer sought ungrounded price cuts and delayed payments beyond agreed terms, representatives from the buyer side reportedly cited quality discrepancies, delayed deliveries, and global retail headwinds as reasons for the payment delays. The dispute escalated to a point where the BGMEA intervened to mediate between the affected factory owners and the Polish buyer to resolve the outstanding financial liabilities amicably. However, as talks stalled and tensions grew over unresolved claims, LPP SA decided to temporarily halt its sourcing activities from the Bangladeshi market. The suspension comes as a significant blow to Bangladesh's ready-made garment (RMG) sector, as LPP SA has been one of the prominent European buyers expanding its footprint rapidly in Central and Eastern Europe and sourcing millions of pieces of apparel from Bangladesh annually. BGMEA president Mahmud Hasan Khan has expressed concern over the situation, noting that such large-scale payment disputes create operational distress for local factories, affecting cash flow, raw material payments, and worker wage disbursements.  The apex trade body is actively working with trade officials, legal advisors, and the buyer’s representatives to recover the unpaid dues and restore commercial ties, he said. The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has also taken a firm stance regarding the matter. BKMEA President Mohammad Hatem confirmed receiving the suspension letter from the Polish brand. "Whether they continue sourcing from Bangladesh is their business," Hatem said. "But if they fail to take steps to settle the outstanding payments owed to Bangladeshi exporters, we will move to have them blacklisted in Bangladesh." He added that the association would also raise the issue of LPP's alleged non-compliance with the European Union, buyers' forums, and other relevant stakeholders.

The National Board of Revenue (NBR) has announced a tax incentive of up to five percent for individual taxpayers and Hindu Undivided Families (HUFs) who submit their income tax returns between July 1 and September 30, aiming to encourage voluntary tax compliance and timely return filing. According to an NBR press release issued on Sunday, eligible taxpayers filing their returns within the three-month period will receive a tax rebate equivalent to five percent of the tax payable under Section 173 of the Income Tax Act, 2023, subject to a maximum benefit of Tk 25,000. The revenue authority said no tax incentive will be available for returns filed between October 1 and December 31. The NBR also outlined additional tax liabilities for late filers. Taxpayers submitting returns between January 1 and March 31 will have to pay an additional amount equal to two percent of the tax payable or Tk 3,000, whichever is higher, under Section 173(2) of the Income Tax Act, 2023. For returns filed between April 1 and June 30, the additional tax will be five percent of the tax payable or Tk 5,000, whichever is higher. It said the new provision is intended to strengthen the culture of voluntary tax compliance by encouraging taxpayers to submit their returns at the beginning of the filing period, while also making tax administration more efficient and orderly. The NBR noted that it launched the e-return service for individual taxpayers for the 2026-27 tax year on July 22. Taxpayers can file their returns and pay taxes online through the NBR’s e-tax platform using bank transfers, debit and credit cards, as well as digital payment services including bKash, Nagad and Rocket. Upon successful submission with accurate information, taxpayers can instantly obtain an acknowledgement receipt and tax certificate through the online system. To assist taxpayers facing difficulties with online filing, NBR officials will provide support through the call centre (09643717171) and other electronic channels during office hours on working days. The revenue authority urged taxpayers to submit their returns by September 30 to avail themselves of the tax rebate, reiterating that no incentive will be granted for returns filed after the deadline.