Macro
BUILD proposes flat 10% VAT rate
Business Initiative Leading Development (BUILD) – a private sector think tank – has proposed setting a flat value-added tax (VAT) rate at 10%, suggesting that it could help improve the government’s revenue collection. During a pre-budget meeting with the National Board of Revenue (NBR) yesterday (5 March), Ferdous Ara Begum, chief executive officer of BUILD CEO, also highlighted the complexity of the current VAT structure. Currently, 53% of economic activities fall outside the VAT system, while the remaining 47% are subject to varying rates across three levels, rendering the rebate system largely ineffective, Ferdous Ara pointed out.
https://www.tbsnews.net/economy/build-proposes-flat-10-vat-rate-1085186

Bank
Banks disbursed Tk19,215 crore of agriculture, rural credit in 7 months
The agricultural credit growth is on pace as the banks disbursed around 50.57% of the fiscal target in seven months. According to the latest update from Bangladesh Bank, the scheduled banks have disbursed Tk19,215 crore in seven months from July to January as agricultural and rural credit for the current fiscal year FY2024-25. However, two banks have not been able to disburse any loans during this period. The loan disbursement amount of the three banks is less than 10%.
https://www.tbsnews.net/economy/banking/banks-disbursed-tk19215-crore-agriculture-rural-credit-7-months-1085191

Banks, NBFIs to face Tk5 lakh fine if monthly loan data not provided on time: Cenbank
From now on, banks and non-bank financial institutions (NBFIs) will have to update the monthly information about borrowers by the 15th of the following month or face Tk5 lakh in fines, the Bangladesh Bank has said. Previously, the deadline for providing the monthly data was 20th of the next month. In a circular issued yesterday (5 March), the Credit Information Bureau (CIB) of the central bank also said it would take action against the officials of any bank and NBFI if the monthly data on loan disbursement is not provided to the CIB accurately and satisfactorily.
https://www.tbsnews.net/economy/banking/banks-nbfis-face-tk5-lakh-fine-if-monthly-loan-data-not-provided-time-cenbank

Banks in Bangladesh face Tk 1 lakh cr provision shortfall
The banking sector’s provision shortfall crossed Tk 1 lakh crore for the first time in December 2024, marking a staggering 337 per cent growth in just six months due to increased distressed assets in banks, especially in private commercial ones. Bangladesh Bank data showed that the provision shortfall soared to Tk 1,06,130 crore at the end of December, up from Tk 55,378 crore in September and Tk 31,549 crore in June.
https://www.newagebd.net/post/Banking/259429/banks-in-bangladesh-face-tk-1-lakh-cr-provision-shortfall

Banks’ special securities fund stays two more years
Banks’ special fund designated for stock-market investment survives two more years until December next year as the regulator renews its tenure amid entreaties from stakeholders and fears of securities selloffs, officials said. After deciding to extend the tenure last week, they added, the central bank in a letter sought approval from the ministry of finance to keep the investments from the fund beyond the banks’ capital-market exposure until the new tenure expires. The fund was formed to help stabilise the stock markets through enhancing liquidity flow.
https://thefinancialexpress.com.bd/economy/bangladesh/banks-special-securities-fund-stays-two-more-years

Call money rate falls slightly after CRR cut
The inter-bank call-money rate edged down slightly on Wednesday, a day after the cut in daily cash reserve requirement (CRR) by 50 basis points, giving more flexibility to the banks for maintaining their CRR. The weighted average rate (WAR) of call money came down to 10.02 per cent on the day from 10.03 per cent of the previous day. It was 10.05 per cent a week before.
https://today.thefinancialexpress.com.bd/last-page/call-money-rate-falls-slightly-after-crr-cut-1741199247

Fuel & Power
Govt to clear int’l energy suppliers’ arrears in two months
The government will clear the arrears it owes to international energy suppliers within the next two months, reports UNB. “We are going to clear the arrears to international companies in the next two months,” said Fouzul Kabir Khan, energy adviser of the interim government, in disclosing the government’s plan in this regard. According to official sources, approximately $700 million in overdue payments is owed to international oil companies (IOCs), including Chevron Bangladesh and QatarEnergy.
https://today.thefinancialexpress.com.bd/trade-market/govt-to-clear-intl-energy-suppliers-arrears-in-two-months-1741197002

Govt to buy Tk 1,496 crore LNG from spot market
The Advisory Committee on Government Purchases today approved two proposals to buy liquefied natural gas (LNG) from the spot market for Tk 1,496.37 crore under the direct procurement method. The Energy and Mineral Resources Division has been authorised to procure LNG worth Tk 754.42 crore at $15.73 per Metric Million British Thermal Units (MMBTU) from M/S Total Engineering Gas and Power Ltd, Switzerland. Another purchase worth Tk 741.95 crore at $15.47 per MMBTU was approved from M/S Singapore Pte Ltd, Singapore.
https://www.thedailystar.net/business/news/govt-buy-tk-1496-crore-lng-spot-market-3840416

Stock
Unilever Consumer Care announces higher dividend despite profit decline
Despite a 31% drop in profits, Unilever Consumer Care Bangladesh has declared a substantial dividend for 2024. In an announcement on the Dhaka Stock Exchange (DSE) yesterday (5 March), the company’s board revealed plans to distribute a 520% cash dividend, a notable increase from the 300% cash dividend paid in 2023. However, Unilever Consumer’s financial performance for the year showed a decline, with net profit falling by 31% to Tk 66.70 crore compared to the previous year.
https://www.tbsnews.net/economy/stocks/unilever-consumer-care-declares-tk100cr-dividend-1084856

DSE downgrades Hamid Fabrics to Z
The Dhaka Stock Exchange (DSE) downgraded Hamid Fabrics to Z category yesterday due to its failure to hold an annual general meeting (AGM) on time. Hamid Fabrics reported that its revenue dropped over 52% to Tk24.87 crore in the July- September quarter of the fiscal year 2024-25 compared to the same time of the previous year. During the period, it incurred a loss of Tk9.65 crore. At the end of September, its earnings per share stood at Tk1.06 negative.
https://www.tbsnews.net/economy/stocks/dse-downgrades-hamid-fabrics-z-1085576