Five takeaways from the economy last week

Bangladesh's economy last week revolved around budget proposals, banking sector turmoil, social protection spending, fiscal risk warnings, and trade infrastructure.

The following is a recap of those major stories as covered by Star Business.

NBR seeks to raise taxes on dividend income (June 14)

The government's proposed FY2026-27 budget plans to withdraw tax benefits on stock dividend income, slash individual rebates, and tax corporate dividends at standard rates. Market analysts warn that the measures could severely deter investors and destabilise the capital market.

Appointment row leaves Islami Bank dry in just two weeks (June 15)

Islami Bank faced a severe liquidity crunch following protests over the appointment of its new chairman, plunging its current account with the central bank into a Tk 4,000 crore deficit. Consequently, Bangladesh Bank dissolved the board and injected Tk 2,500 crore in special support.

Govt to assess Family Card impact: Khosru (June 16)

The government will conduct regular impact assessments of its Family Card programme to ensure that the social protection scheme improves beneficiaries' lives. A Tk 14,500 crore allocation has been proposed for the next fiscal year, targeting 41 lakh families.

New budget faces revenue execution risks: Fitch (June 17)

Fitch Ratings warned that the newly elected government's ambitious FY2026-27 budget faces significant revenue execution risks due to persistent tax collection constraints. Fitch projects economic growth of 3.5 percent, sharply lower than the government's 6.5 percent target.

Govt clears path for first free trade zones (June 18)

The government has cleared the path for Bangladesh's first free trade zones (FTZs) near Matarbari deep-sea port and Anwara. The initiative aims to significantly reduce export lead times, attract foreign suppliers through duty-free warehousing, and establish the country as a regional logistics hub.