Bloomberg Sustainability List Features 7 Bangladeshi firms

The National Board of Revenue (NBR) has exempted the advance tax (AT) on the import of raw materials for cancer drug manufacturing, aiming to reduce production costs and drug prices. Previously, a 5% AT was imposed, but it has now been reduced to 2% or eliminated altogether.

Bangladesh Bank has decided to discontinue the Assured Liquidity Support (ALS) facility for primary dealer (PD) banks, citing the absence of devolvement in government securities (G-Sec) auctions for over three financial years. Introduced in 2008 to help PD banks meet their underwriting obligations, the ALS allowed them to access liquidity at the repo rate (currently 10%).

Bangladesh Bank has eased down payment requirements for exit facilities on defaulted loans of closed or loss-making companies, reducing the minimum payment from 10% to 5% of the outstanding loan balance. Additionally, the loan threshold for management-approved exit facilities has been raised from Tk10 lakh to Tk20 lakh, while higher amounts will require board approval.

Government borrowing from commercial banks has surged by 74% in the current fiscal year as private sector credit growth remains low and authorities aim to reduce central bank debt under a contractionary monetary policy. Between July and 20 February, the government borrowed Tk78,832 crore through Treasury bills and bonds, compared to Tk45,231 crore in the same period last year.

Samuel S Chowdhury, chairman of Square Pharmaceuticals, plans to buy 15 lakh shares worth over Tk 32 crore within 30 working days through the Dhaka Stock Exchange (DSE). As of November 30, 2023, he held a 9.32% stake, which will rise to 9.49% after the purchase.

Private sector credit growth in Bangladesh hit a decade-low of 7.15% in January 2025, the lowest since at least 2015. This growth was significantly below the Bangladesh Bank's target of 9.80% for the second half of the fiscal year. Economists and bankers attribute the slowdown to the central bank’s tight monetary stance, high lending rates, and economic uncertainty following political changes.