Withdrawals outpaced investments in the first half of FY23

Expatriate arrivals in Bangladesh significantly dropped recently, with expatriate income from July 19-24 amounting to $78 million. This is a sharp decline from the daily average of $79 million in the first 18 days of July. Banking activities were disrupted from July 19-23 due to a curfew and internet shutdown, affecting legal channels for expatriate income.

Clinker, the primary raw material for cement production, has been the top imported commodity for 24 consecutive years. In the financial year 2023-24, Bangladesh imported 20.5 million tonnes of clinker, a slight decrease from 2022-23. This import volume surpasses that of coal by 7.8 million tonnes and broken stone by 100 million tonnes.

Private sector credit growth in Bangladesh has slowed, decreasing from 10.35% in May to 9.8% in June 2024. This decline is attributed to reduced new investment, a contractionary monetary policy, and rising lending rates. In the fiscal year 2023-24, private sector credit growth averaged 10%, compared to 14% in the previous fiscal year.

"Paperfly", Bangladesh's biggest logistics company, bought back its 82% interest from Indian investor Ecom Express for a price that was not disclosed. This comes after Ecom Express faced problems in the global investment market, pushing them to withdraw from a planned second round of funding.

A five-day internet outage in Bangladesh caused a sharp decline in digital banking transactions, revealing the sector's heavy reliance on stable internet connectivity. Following the launch of 4G and the Covid-19 pandemic, cashless transactions had surged.

Banks and NBFIs have been instructed by the central bank to waive fees and interest on delayed repayments for loans, savings schemes, and credit card bills from July 18 to July 25 due to recent country-wide unrest. This directive aims to support clients who may have missed payments amidst internet shutdowns and curfews.