The FY2026β"27 national budget has introduced an extensive package of financial sector reforms aimed at accelerating investment inflows, simplifying cross-border capital movement, and modernising Bangladeshβs banking system and capital market infrastructure.
A major reform is the introduction of a mandatory 30-day deadline for approving the repatriation of foreign investorsβ profits, a measure designed to strengthen investor confidence and improve capital mobility. Foreign investors will also be allowed to repatriate capital of up to BDT 100 crore without prior approval from Bangladesh Bank, significantly easing exit and reinvestment processes.
In another liberalisation step, proceeds from investment sales will now be directly credited to Non-Resident Investor Taka Accounts (NITA), while the requirement for auditor certification on NITA transactions has been removed. Unlisted shares worth up to BDT 1 crore will also be transferable without valuation reports, reducing administrative delays and compliance costs.
To enhance transparency in asset pricing, the government plans to introduce licensed valuation firms alongside a dedicated Certification Board to regulate and standardise valuation practices across the financial sector.
On trade financing, the budget proposes a gradual shift towards more flexible import settlement arrangements. Trusted importers will increasingly be allowed to conduct transactions without mandatory Letters of Credit (LCs), using alternative mechanisms such as Documents Against Payment (D/P) and Telegraphic Transfer (TT).
Businesses will also gain easier access to domestic financing supported by foreign bank guarantees and Standby Letters of Credit (SBLCs), while access to foreign currency loans from Offshore Banking Units (OBUs) is set to be simplified.
Banking reforms feature prominently in the fiscal proposals. Approval procedures for branch leasing and relocation will be streamlined, while the Real-Time Gross Settlement (RTGS) system will be strengthened to facilitate faster high-value transactions.
The budget also proposes fully digital e-loans of up to BDT 50,000, aimed at expanding rapid and inclusive access to credit. To ease pressure on the legal system, banks will be encouraged to adopt pre-suit mediation before initiating loan recovery proceedings.
Capital market reforms are equally wide-ranging. The Initial Public Offering (IPO) process is set to be fully digitised and simplified, while authorities will explore direct listing mechanisms to allow companies to enter the stock market without undergoing a traditional IPO.
Institutional investor participation will be expanded, alongside stronger support for corporate bond and municipal bond markets. The government also plans to develop a commodity exchange and introduce modern financial instruments such as Real Estate Investment Trusts (REITs), Exchange Traded Funds (ETFs), and hedging tools.
In a move to deepen global integration, dual listing opportunities for Bangladeshi companies on foreign exchanges are under consideration, while Non-Resident Bangladeshis (NRBs) and foreign investors will find it easier to open and operate NITA accounts.
