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The newly elected BNP government has not wasted time over requesting the UN to defer the process of country’s LDC graduation. Notably, the country was scheduled to graduate from the Least Developed Country (LDC) category on November 4, 2026 following completion of the 5-year preparatory period granted for transition by the UN after it made recommendation for Bangladesh’s graduation in 2021. In the beginning, LDC graduation was a prestige project for the government of the time. The immediate-past interim government led by Dr Yunus, on the other hand, was actually seeking to defer the graduation till 2030. In this connection, it was coordinating with other graduation candidates like Nepal and Laos to delay the process. It is worthwhile to note that the country’s business community, particularly the apparel sector and the pharmaceuticals industry, has been against the graduation schedule and made representations to the interim government for deferment of the graduation for six years to avoid the shock the economy would be exposed to following graduation.

For graduation would result in the apparel exports’ losing duty /quota-free trade access to the EU and other key markets according to the ‘Everything but Arms (EBA)’ initiative under the Generalized System of Preference (GSP) for LDCs. Once graduated, the exporters would be subjected to nearly 12.5 per cent tariffs in the EU market and lose about USD 8 billion worth of business annually. Add to that the stricter post-graduation compliance obligations regarding labour rights, environmental standards and intellectual property (IP) rights. Mention may be made here that the post-graduation withdrawal of the World Trade Organization (WTO)’s waiver on Trade-Related Aspects of Intellectual Property Rights (TRIPS) would severely affect the country’s pharmaceutical sector. At present, the temporary waiver being enjoyed by the pharmaceutical companies courtesy WTO’s flexibility on patent rules has enabled them (drug companies) to produce generic versions of life-saving drugs at affordable prices. But once TRIPS waiver is over and patent protection rights are in place, many drugs, especially, those for the cancer and HIV patients will go beyond the purchasing power of even the rich patients, let alone the low-income ones.

So, if the apparel sector’s case for graduation deferment is about saving 80 per cent of the country’s total export income, then the drug sector’s is about protecting the nation’s public health. If the UN Committee for Development Policy (CDP), to which Bangladesh government has sent the letter requesting three years’ deferment of the graduation time line, responds positively, the local industries in question might get the breathing space to prepare themselves for graduation. Meanwhile, they would be able to develop the infrastructure to manufacture active pharmaceutical ingredients (APIs) locally. (An API is the component of the prescription medication that produces its intended health effects). Also, if the asked for time extension is granted by the UN body concerned, the extra time will help the new government prepare better through meeting current economic challenges including high inflation rate (over 9 per cent), improving forex reserves, addressing banking sector volatility, etc.

Another area to address is dealing with the high tariff and other compliance conditions imposed by the US. However, the arguments put forward by the present government supporting graduation deferment cover the disruptions caused to preparatory work by COVID-19, the Russia-Ukraine war, risks to macroeconomic stability, the recent political instability, especially in the wake of the student-led mass upsurge of July 2024, etc. These are evidently cogent reasons expressed by the government to justify its request for LDC deferment. Nevertheless, the government would be well advised to submit a technical report to the UN’s review committee concerned with convincing explanations in favour of LDC graduation deferral. Meanwhile, Myanmar, Timor-Leste and the Solomon Islands could defer LDC graduation citing their compelling circumstances. That should place Bangladesh’s case on a firmer ground.

https://today.thefinancialexpress.com.bd/editorial/bangladeshs-case-for-ldc-deferral-1771857768

Amir Khasru Mahmud Chowdhury, who is set to take charge as the finance and planning minister of the BNP-led new government, has set boosting investment and employment as his top priority, saying the government will focus on simplifying the business climate and lowering the cost of doing business to stimulate economic activity.

In a short interview with The Business Standard shortly after taking oath in the government led by Tarique Rahman, Khasru said effective measures would be taken to curb corruption and extortion, which he identified as barriers to growth.

He said deregulation would be introduced to ease bureaucratic complexity and reduce business costs.

High bank lending rates and elevated gas and electricity charges are discouraging private-sector investment and limiting job creation, he added.

“Lowering lending rates to a tolerable level, removing bureaucratic hurdles and improving ease of doing business will be central policy priorities,” the minister said.

Amir Khasru described the broader economic landscape as challenging, citing Bangladesh’s declining tax-to-GDP ratio, weaknesses in the banking and financial sectors, and a struggling capital market.

“Although inflation has eased slightly, it remains high, while private-sector credit growth has slowed sharply, investment and job creation remain weak, capital machinery imports have fallen, and poverty is rising.

“To overcome this situation, we will have to take major and difficult decisions,” he said, adding that stricter reforms will be needed compared with previous administrations.

Reducing the cost of doing business to encourage investment and employment will be pursued at any cost, alongside efforts to raise the tax-to-GDP ratio through economic expansion, he said.

The minister added that as the finance minister, he will undertake a comprehensive review of the economy to determine its current condition, after which the government will outline a roadmap defining its economic direction.

Import letters of credit (LCs) opened in January climbed to $6.61 billion – the highest in 11 months – as businesses stepped up purchases ahead of the national election and the fasting month of Ramadan.

A senior official of the Bangladesh Bank confirmed the figures, adding that LC openings in January last year stood at $6.85 billion. LC settlements in January this year amounted to $6.16 billion.

Bankers and central bank officials, while talking to TBS, attributed the surge to increased imports of essential commodities ahead of Ramadan and a renewed sense of business confidence surrounding the February elections. Traders also brought in some capital machinery in anticipation of improved economic conditions.

Mohammad Ali, managing director and CEO of Pubali Bank, said LC openings typically rise before Ramadan due to higher imports of consumer goods.

“Rice, pulses, edible oil, and dates are imported in larger quantities ahead of the fasting month. LC openings generally increase during this period compared to other months,” he said.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said imports of essential commodities have increased in preparation for Ramadan, while the February elections created some optimism among businesses, prompting limited imports of capital machinery.

“If the overall business environment improves, new investments will follow, which will further boost imports of capital equipment,” he said, adding that banks currently have adequate dollar liquidity. 

Mahbubur further said, “There is no shortage of dollars, and businesses can access foreign currency to open LCs as needed.”

However, a treasury head at a private bank noted that private sector credit growth has slowed since August 2024, reflecting subdued new investment and trade activity. 

“Without new business expansion, demand for capital machinery remains limited, which in turn affects LC openings,” he said.

Essential food items in high demand during Ramadan include rice, wheat, edible oil, sugar, lentils, onions, garlic, chickpeas and dates. 

According to the Ministry of Commerce, demand during Ramadan alone is estimated at 3,00,000 tonnes for soybean oil, 3,00,000 tonnes for sugar, 5,00,000 tonnes for onions, 1,50,000-200,000 tonnes for chickpeas, and 60,000-80,000 tonnes for dates.

Data from the National Board of Revenue show that over the past four months, imports included 2,25,000 tonnes of onions, 3,70,000 tonnes of sugar, 47,000 tonnes of dates, 2,05,000 tonnes of lentils, nearly 4,00,000 tonnes of crude soybean oil and 1,40,000 tonnes of wheat.

The January spike in LC openings suggests a seasonal boost in trade activity, though sustained momentum will depend on broader improvements in investment and business confidence.

Private credit growth below 7%

Bangladesh Bank data shows that private sector credit growth stood at 6.10% at the end of December, remaining below 7% for seven consecutive months. This indicates that businesses are borrowing less for trade and investment.

According to bankers, major conglomerates – including Meghna Group, City Group, Square Group, Edible Oil Limited, Bashundhara Group and TK Group – have already imported most of the goods required for Ramadan.

Data also shows that imports of six essential items that are widely consumed during Ramadan rose sharply in September and October compared with the same period last year. 

Soybean oil imports increased by 36%, sugar by 11%, lentils by 87%, chickpeas by 27%, split peas by 294% and dates by 231%.

https://www.tbsnews.net/economy/import-lcs-opening-highest-11-months-january-1363486

The Transparency International Bangladesh (TIB) has said that despite some irregularities, the 13th parliamentary election was fair, acceptable and inclusive overall.

TIB Executive Director Dr Iftekharuzzaman, addressing a press conference on Monday, highlighted the dominance of the businesses in the country’s electoral process.

Commenting on TIB’s observation report on the 13th national parliamentary election, he said entering politics with the intention of capitalising on profit raises serious moral questions.

“People from any profession can enter politics — there is no problem with that. But when politics is used to expand opportunities for money-making, it becomes problematic,” he said, stressing that the issue deserves consideration from a democratic perspective.

He also questioned how far politics benefits from such practices and whether they are appropriate in a democratic system.

At the press meet, TIB released its report titled ‘The 13th National Parliament Election Process and Affidavit-Based Observation’.

According to the report, nearly 60 per cent of the newly elected members of parliament (MPs) are businessmen by profession. Although the share of businessmen has slightly declined compared to the 12th parliament, they have remained dominant in the legislature since 2008.

Drawing on past experiences, Iftekharuzzaman said the overlap of political and business roles often turns politics into a profit-making tool.

“No one can deny that political identity is used as a means of profiting,” he said, adding that political interference and lobbying influence business policies, structures and public procurement processes.

TIB Senior Research Fellow Mahfuzul Haque and Director (Outreach and Communication) Touhidul Islam presented key observations from the report.

TIB analysed the election process in 70 constituencies.

However, it found that 99 per cent of candidates breached the electoral code of conduct.

Irregularities observed on polling day included casting of fake votes, voter intimidation, favouritism by election officials and obstruction of polling agents from entering polling centres.

Among the winners, businessmen constituted the largest group at 59.9 per cent.

A total of 209 MPs were elected for the first time, with the average age of the new MPs being 59 years. More than 84 per cent hold graduate or higher degrees.

Based on declared assets, 236 elected MPs are millionaires, while 13 are billionaires.

The report also noted that half of the new MPs have liabilities or debts, with total liabilities amounting to Tk 113.56 billion — the highest compared with the previous four parliaments.

By party, 62 per cent of MPs from Bangladesh Nationalist Party (BNP) and 16 per cent from Jamaat-e-Islami have reported liabilities.

The report further said campaign spending limits were widely violated both online and offline, individually and jointly. Violations were highest among candidates from the two major parties.

Offline or individual campaign spending exceeded prescribed limits by between 19 per cent and 328 per cent.

Spending overruns were highest among BNP candidates (327.5 per cent), followed by independents (315.2 per cent), Jamaat candidates (159.1 per cent), Jatiya Party candidates (128.6 per cent) and NCP candidates (19 per cent). TIB also highlighted a sharp decline in women’s representation in the new parliament.

Women account for only 2.36 per cent of the 13th parliament — half the level seen in the 2008 ninth parliament and the lowest on record.

https://today.thefinancialexpress.com.bd/first-page/polls-were-largely-fair-acceptable-tib-1771265764

যুক্তরাষ্ট্রের সঙ্গে বাণিজ্য চুক্তিতে স্বাক্ষর করেছে বাংলাদেশ। এ চুক্তির পর বাংলাদেশী পণ্যের ওপর আরোপিত শুল্কহার ২০ শতাংশ থেকে কমিয়ে ১৯ শতাংশ করেছে যুক্তরাষ্ট্র । একই সঙ্গে যুক্তরাষ্ট্র থেকে আমদানিকৃত তুলা ও কৃত্রিম তন্তু দিয়ে তৈরি পোশাক রফতানির ক্ষেত্রে রেসিপ্রোকাল শুল্ক শূন্য থাকবে। সোমবার (৯ ফেব্রুয়ারি) ওয়াশিংটন ডিসিতে বাংলাদেশ সময় রাতে যুক্তরাষ্ট্রের সঙ্গে এ বাণিজ্য চুক্তি সই হয়। প্রধান উপদেষ্টার প্রেস উইং এ তথ্য জানিয়েছে।

বাংলাদেশের পক্ষে চুক্তিতে স্বাক্ষর করেন বাণিজ্য উপদেষ্টা শেখ বশিরউদ্দীন ও জাতীয় নিরাপত্তা উপদেষ্টা খলিলুর রহমান। যুক্তরাষ্ট্রের পক্ষে স্বাক্ষর করেন মার্কিন বাণিজ্য প্রতিনিধি (ইউএসটিআর) রাষ্ট্রদূত জেমিসন গ্রিয়ার। গত বছরের এপ্রিল থেকে দীর্ঘ নয় মাসব্যাপী আলোচনার পর এ চুক্তিটি চূড়ান্ত হলো।

অনুষ্ঠানে জাতীয় নিরাপত্তা উপদেষ্টা ড. খলিলুর রহমান, বাণিজ্য উপদেষ্টা শেখ বশিরউদ্দীন এবং বাণিজ্য মন্ত্রণালয়ের সচিব মাহবুবুর রহমান বাংলাদেশ থেকে ভার্চুয়ালি অনুষ্ঠানে যুক্ত হন। প্রধান উপদেষ্টার আন্তর্জাতিক বিষয়ক বিশেষ সহকারী লুৎফে সিদ্দিকীও এ সময় ভার্চুয়ালি যুক্ত ছিলেন।

চুক্তি স্বাক্ষর শেষে বাংলাদেশের প্রতিনিধিদলের প্রধান বাণিজ্য উপদেষ্টা শেখ বশিরউদ্দীন বলেন, এ চুক্তি আমাদের দ্বিপাক্ষিক অর্থনৈতিক ও বাণিজ্যিক সম্পর্কের ক্ষেত্রে একটি ঐতিহাসিক নতুন উচ্চতার সূচনা করল। এর ফলে বাংলাদেশ ও যুক্তরাষ্ট্র উভয়ই একে অপরের বাজারে উল্লেখযোগ্য মাত্রায় পণ্য প্রবেশের সুবিধা পাবে।’

চুক্তির শর্তানুসারে, যুক্তরাষ্ট্র বাংলাদেশের ওপর আরোপিত পারস্পরিক শুল্ক কমিয়ে ১৯ শতাংশ নির্ধারণ করবে। বাংলাদেশ দলের প্রধান আলোচক জাতীয় নিরাপত্তা উপদেষ্টা খলিলুর রহমান বলেন, পারস্পরিক শুল্ক ২০ শতাংশ থেকে কমিয়ে ১৯ শতাংশ করায় আমাদের রফতানিকারকরা আরো বাড়তি সুবিধা পাবেন। পাশাপাশি নির্দিষ্ট কিছু বস্ত্র ও তৈরি পোশাক রফতানিতে ‘শূন্য’ শুল্ক সুবিধা আমাদের তৈরি পোশাক খাতে ব্যাপক গতি সঞ্চার করবে।

বাণিজ্য মন্ত্রণালয়ের সূত্র বলছে, চুক্তিটি সোমবার উপদেষ্টা পরিষদে অনুমোদিত হয়েছে। উভয় পক্ষ থেকে আনুষ্ঠানিক প্রজ্ঞাপন জারির পর এটি কার্যকর হবে।

প্রসঙ্গত, যুক্তরাষ্ট্রের প্রেসিডেন্ট ডোনাল্ড ট্রাম্প ২০২৫ সালের ২ এপ্রিল ১০০টি দেশের ওপর বিভিন্ন হারে পাল্টা শুল্ক আরোপের ঘোষণা দেন। শুরুতে বাংলাদেশের জন্য এ হার ছিল ৩৭ শতাংশ, যা গত বছরের আগস্টে কমিয়ে ২০ শতাংশ করা হয়েছিল। এছাড়া, যুক্তরাষ্ট্র একটি বিশেষ প্রক্রিয়া চালুর প্রতিশ্রুতি দিয়েছে, যার মাধ্যমে যুক্তরাষ্ট্রের উৎপাদিত তুলা এবং মানবসৃষ্ট তন্তু ব্যবহার করে বাংলাদেশে তৈরি নির্দিষ্ট কিছু বস্ত্র ও পোশাক পণ্য মার্কিন বাজারে শূন্য শুল্ক সুবিধা পাবে।

https://bonikbarta.com/economy/OAz25Fb7zXmGcOrE