The stock market has almost closed the books on the fiscal year (FY) 2024-25 without a single company getting listed through an initial public offering (IPO), a rare event not seen in decades.
Most listed companies saw their profits shrink in the January-March period of the current year as stubbornly high inflation pushed up business costs while weak consumer demand held back sales growth.
If a company gets listed, it will enjoy tax benefits, and this is one of the major incentives for them to go public.
The government must prioritise boosting the competitiveness of all industries if it wants to create more jobs, capture a bigger share of global markets, and strengthen the economy.
The finance ministry has identified seven major challenges including tight monetary and fiscal policies, taken to tame elevated inflation levels for more than three years, in next fiscal year that may increase unemployment.
The government expects the country’s economy to cross the $500 billion mark in the fiscal year (FY) 2026-27, buoyed by stabilising policies and sectoral improvements.
The interim government proposed a new framework for social safety net programmes, under which 7.68 crore poor people would receive Tk 37,076 crore next fiscal year to help them cushion the blow from high inflation over the last three years.
The government’s target to provide subsidies and incentives amounting to Tk 125,741 crore in fiscal year 2025-26 is creating high pressure on fund mobilisation amid a challenging macroeconomic situation.
At the end of 2024, one-fifth of the total loans in the banking sector turned into bad loans, mainly because the true extent of fund embezzlement by willful defaulters is now coming to light
Emerald Oil, a rice bran oil maker, has seen a bumpy performance since being listed with the Dhaka Stock Exchange (DSE), which in turn has led its investors down a tumultuous road.
Although Bangladesh’s insurance sector has suffered a confidence crisis due to widespread corruption over the past 15 years, the interim government has not taken notable reform measures for the industry.
The interim government has not pursued significant reforms in the insurance sector
No one expects to bear the consequences of offenses committed by another person. Yet, this is exactly what is happening in the stock market, where investors are suffering due to the wrongdoings of company directors.
The Bangladesh Shipping Corporation (BSC) is going to purchase six modern container ships from South Korea at a cost of $330.32 million to break the stranglehold enjoyed by non-Bangladeshi feeder vessels, which results in the loss of a substantial amount of foreign currency in freight costs.
Most listed readymade garment (RMG) producers secured higher profits during the October-December period of this fiscal year, buoyed by global demand even amidst the myriad challenges plaguing Bangladesh’s overall business climate.
The stock market is essentially a financial tool in which a portion of people’s savings is expected to be invested. Ideally, investment through loans is not recommended as it increases the risk of losses.
An analysis of company profits found that large companies were comparatively in a better position, while smaller firms faced tougher conditions.
All closed-end mutual funds must be redeemed on reaching maturity and no tenure extension will be allowed, recommended a government-formed taskforce.
