LOCAL ECONOMY

NEC sits today on Tk2.3 lakh cr ADP; buildings get lion's share

  May 18, 2025

• National Economic Council (NEC) is ready to convene today to recommend Tk2.3 lakh crore Annual Development Programme (ADP) for the fiscal year 2025-26. This proposed ADP considers a cut in the budget, aligning with the government's austerity measures and project cuts implemented by the interim administration.

• A significant portion of the proposed ADP is allocated to infrastructure development, with building projects receiving the lion's share of the budget. This emphasis underscores the government's focus on enhancing the country's physical infrastructure as a driver for economic growth. (Read more here)

 Insurance growth hit a three-year low in 2024

May 18, 2025

•  Premium Growth Drops to 7.3%: Bangladesh's insurance sector experienced a significant slowdown in 2024, with premium collection growth falling to 7.3%, down from 9.1% in 2023. This marks the lowest growth rate in three years, indicating challenges in the sector's expansion.

• Decline is mainly due to economic slowdown and uncertainties and market saturation, which impacted sectors ability to to attract new policyholders and retain existing ones. (Read more here)

 Govt borrows Tk1.08 lakh crore from commercial banks in 11.5 months of FY25

  May 18, 2025

•  In the first eleven and a half months of fiscal year 2024-25, the Bangladeshi government borrowed Tk1.08 lakh crore from scheduled banks, marking a 57% increase compared to the same period in the previous fiscal year.

• This substantial increase in borrowing may have implications for the country's monetary policy and financial stability, potentially affecting interest rates and the availability of credit for the private sector. (Read more here)

 US-Bangladesh FTA talks begin, RMG may see major boost

  May 18, 2025

• The United States and Bangladesh have commenced talks on a Free Trade Agreement (FTA), aiming to strengthen bilateral trade relations and economic cooperation between the two nations.

• The FTA is expected to provide significant advantages to Bangladesh's Ready-Made Garment (RMG) sector by potentially reducing tariffs and improving market access to the US, which could lead to increased exports and job creation in the industry. (Read more here)

 Must proceed with LDC graduation despite hurdles

 May 18, 2025

• Finance Adviser Salehuddin Ahmed emphasized that Bangladesh must proceed with its graduation from the Least Developed Country (LDC) status by 2026, despite existing challenges and debates surrounding the transition.

• Ahmed urged the business community to expedite reforms and modernization efforts to ensure the country remains competitive post-graduation. (Read more here)

 US tariff war: Implications and strategies for Bangladesh

  May 18, 2025

• With major competitor countries facing higher tariffs and increased risks, Bangladesh has a strategic opportunity to strengthen its position in the US apparel market, according to Debapriya Bhattacharya of the Centre for Policy Dialogue (CPD).

• Recommendations for Policy Reforms: Bhattacharya suggested eliminating para-tariffs, such as supplementary and regulatory duties, to lower effective import tariffs and demonstrate goodwill towards US trade concerns. (Read more here)

 Address banking, energy issues to restore business confidence

  May 18, 2025

 Experts emphasize the need to tackle six critical areas, including deteriorating law and order, compliance challenges, labor regulation reforms, inadequate gas and power supplies, and vulnerabilities in the financial and banking sectors, to restore business confidence. (Read more here)

 US tariff intended for China and EU, not for LDCs

  May 18, 2025

 Commerce Secretary Mahbubur Rahman clarified that the recent US tariffs are intended for China and the EU, not for Least Developed Countries (LDCs) like Bangladesh. (Read more here)

 Bangladesh to Address Importing US Goods via Third Countries

  May 18, 2025

 Bangladesh plans to raise concerns about importing US-made goods through third countries during upcoming bilateral negotiations on reciprocal tariffs with the United States. (Read more here)

RMG

 Fast fashion, fat margins: How retailers cash in on low-cost RMG

• Global fashion brands are achieving significant profits by purchasing Bangladeshi garments at low prices and selling them at much higher rates in Western markets.

• Despite their substantial profits, these brands continue to pressure Bangladeshi factories to reduce prices further, leading to concerns about sustainability and fair compensation within the industry. (Read more)

 Banking Sector Performance

 Jamuna Bank Reports 9% Profit Increase in Q1

 Jamuna Bank PLC posted a consolidated profit of Tk 191.62 crore for the January- March quarter of 2025, marking a 9% year-on-year growth. (Read more)

 Mutual Trust Bank’s Q1 profit rises 11%

 Mutual Trust Bank achieved a profit of Tk 85 crore in Q1 2025, reflecting an 11% increase compared to the same period last year. (Read more)

 TELECOM

 Robi's profit up 17.6pc in Q1 despite revenue reduction

 Robi Axiata reported a 17.6% year-on-year increase in net profit, reaching Tk 1.25 billion in Q1 2025, despite a 7% decrease in revenue to Tk 23.41 billion. The profit growth was attributed to significant reductions in selling, administrative, finance, and income tax expenses. (Read more here)

 GLOBAL ECONOMIC HEADLINES

 Midpoint of Trump Tariff Hiatus to Reveal Increasingly Unsettled World (WSJ)

Canada Says Most Tariffs on US Remain, Pushing Back on Oxford Report (WSJ)

India Restricts Some Imports from Bangladesh as Ties Suffer (WSJ)

Hong Kong stocks outperform mainland China by most since 2008 (FT)