Blog - Mika Securities-Stock Broker of Dhaka Stock Exchange-DSE

This is for kind information of all concerned that Mika Securities Ltd. (DSE TREC #215) has decided to close operation of its digital booth located at Aziz Plaza (1st Floor), Dariapur Bazar, Shahjadpur, District: Sirajganj 6770 with effect from 31th December 2025.

All the existing services will be available until the completion of closure procedure. If anyone wish to transfer securities in the link B.O account and complete final settlement, all necessary support and cooperation will be provided.

Moreover, any investor may choose to operate his/her trading activities through us from any of our below mentioned branches after 31th December 2025.

Motijheel Branch Office: Address: Shapla Bhaban, 2nd Floor Room # 303, 49 Motijheel C/A Dhaka-1000. Phone #+880-2-55033228 Mobile number: +8801730062171 Email: alamin@mikasecurities.net

Kawran Bazar Branch Office: Address: 5th Floor, BTMC Building, 7-9 Kawran Bazar Road, Dhaka 1215. Phone # +880-2-55033228 Mobile number # +8801730062174 Email: nizam@mikasecurities.net

Tongi Digital Booth Office: Address: Tokyo Tower, 4th Floor, Cherag Ali Market, Tongi, Gazipur 1711. Phone #+880-2-55033228 Mobile number : +8801701216708 Email: tutul@mikasecurities.net

If you have any query, please feel free to contact us at the above mentioned address.

This is for kind information of all concerned that Mika Securities Ltd. (DSE TREC #215) has decided to close operation of its digital booth located at Abu Sayeed Market (2nd Floor), 161 Kalibari Road, Bhairab, District: Kishoreganj-2350 with effect from 31th December 2025.

Moreover, any investor may choose to operate his/her trading activities through us from any of our below mentioned branches after 31th December 2025.

Head Office:
Address: Simpletree Lighthouse, 9th floor, 53 Kemal Ataturk Avenue, Banani, Dhaka-1213, Bangladesh
Phone : +880-2-55033228
Mobile number: +8801730062188
Email: tradeadminmsl@mikasecurities.net

Motijheel Branch Office:
Address: Shapla Bhaban, 2nd Floor Room # 303, 49 Motijheel C/A Dhaka-1000.
Phone #+880-2-55033228
Mobile number: +8801730062171
Email: alamin@mikasecurities.net

Kawran Bazar Branch Office:
Address: 5th Floor, BTMC Building, 7-9 Kawran Bazar Road, Dhaka 1215.
Phone # +880-2-55033228
Mobile number # +8801730062174
Email: nizam@mikasecurities.net

Tongi Digital Booth Office:
Address: Tokyo Tower, 4th Floor, Cherag Ali Market, Tongi,
Gazipur 1711.
Phone #+880-2-55033228
Mobile number : +8801701216708
Email: tutul@mikasecurities.net

If you have any query, please feel free to contact us at the above mentioned address.

The Dhaka Stock Exchange can feel like a puzzle. Prices move fast, news travels even faster, and social media can create a false sense of urgency. But with a clear plan you don’t have to guess. This guide shows three powerful ways to think about stocks:

Fundamental analysis – judging the actual business behind the ticker.
Technical analysis – studying price and trading patterns to spot trends.
Artificial intelligence (AI) – using data-crunching tools to find signals humans might miss.

“Start early. Time in the market beats timing the market.”

Along the way, we’ll sprinkle in some financial tips—ideas drawn from the Financial Analyst curriculum that professionals use worldwide.

🔍 Fundamental Analysis: Understanding the Business

This is the long-term, common-sense approach. Instead of asking Will the price go up tomorrow? you ask Is this company worth owning for years?

“Don’t buy the hype. Buy the business.”

Read the financial statements
Income statement for profits, balance sheet for debt and cash, cash-flow statement for real money coming in and out.
Tips: Turn everything into percentages of revenue (a “common-size” analysis) so you can compare a giant bank with a smaller one on the same scale.
Look at key ratios
Price-to-Earnings (P/E), Price-to-Book (P/B), and Return on Equity (ROE) show how cheap, expensive, or efficient a company is.
Tips: Break ROE into its parts—profit margin, asset use, and leverage—so you know if the number is good because of real profits or just extra borrowing.
Check the big picture
Who runs the company? Do they have an edge that competitors can’t copy—like a strong brand or government license? Are there government policy shifts or currency changes that could help or hurt the business?
Value it yourself
Professionals estimate “intrinsic value” using models like discounted cash flow (future profits brought to today’s value). You don’t need perfect math—just enough to see if the current price is a bargain or already expensive.

📈 Technical Analysis: Watching the Market’s Mood

Technical analysis looks at what other traders are doing. It doesn’t replace fundamentals; it helps with timing. “Patience is the new hustle.” – investing wisdom

Trends and levels – Identify whether the price is trending up or down. “Support” is a price level where buyers keep stepping in; “resistance” is where sellers show up.
Moving averages – A 50-day or 200-day average smooths the ups and downs. When a short average crosses above a long one, it can signal momentum.
Momentum indicators – Tools like RSI (Relative Strength Index) or MACD help spot when a stock might be overbought (too hot) or oversold (too cold).
Volume – Price moves with heavy trading are more convincing than the same move on light volume.

Suggestion: The FA curriculum treats these as behavioral-finance tools—use them as clues to investor psychology, not as fortune telling.

🤖 Adding AI to the Mix

AI isn’t magic, but it’s great at chewing through mountains of data.

Sentiment tracking – AI models can read thousands of Bangla and English news articles or social media posts to gauge public mood about a company or the whole market.
Predictive models – Machine-learning algorithms can estimate the chance of big price swings or sudden volume changes.
Alternative data – Think satellite images of port activity, Google search trends, or mobile payment data that hint at economic health before official numbers come out.
Risk alerts – AI can flag unusual trading patterns that might signal manipulation or liquidity problems.

Suggestion: Even when using AI, the Code of Ethics says you must exercise independent judgment and avoid material non-public information. In other words: let AI help, but stay the decision-maker.

🧠 Bringing It All Together

“Your future self will thank you for every taka you invest today.”

Here’s how an investor might use all three:

Start with fundamentals. Suppose you find a textile exporter with steady earnings and low debt.
Check the charts. The stock is bouncing off a long-term support line and the 50-day moving average just crossed the 200-day—a sign buyers are coming back.
Consult AI signals. A sentiment model shows rising international demand for Bangladeshi textiles and an uptick in positive news.

Now you have a business that’s sound, a market showing momentum, and data suggesting growing interest—a far stronger case than any rumor.

📚 Learning Resources for Bangladeshi Investors

Dhaka Stock Exchange (DSE) – daily prices, company disclosures, and financial reports.
Bangladesh Securities and Exchange Commission (BSEC) – investor education materials and rule updates.
CFA Institute & CFA Society Bangladesh – free webinars, ethics guidance, and practice problems if you’re eyeing the charter.
Mika Securities Research Desk – market summaries and educational webinars for clients.

🎯 Key Takeaways

Fundamentals tell you what to buy, technicals help decide when, and AI adds speed and deeper insight.
Diversify, set stop-loss levels, and size positions sensibly—risk control is the real edge.
Continuous learning and ethical standards, as emphasized in the CFA program, protect your capital better than any single indicator.

“The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett

Investing in shares isn’t gambling — it’s a disciplined journey. If you jump in without understanding, you risk losing more than you gain. But if you take time to study, analyze, and plan, the rewards can be powerful.

Here’s how to think like a smart investor.

🏛 1. Trust the Company, Not Just the Hype

A company’s reputation and governance matter more than glossy headlines. Ask:

Who owns it?
Who manages it?
Are its accounts audited by a trusted firm?

Suggestion: Independent audits reduce information risk. Always check for credible auditors.

💰 2. Don’t Overpay for Earnings

A stock can be popular and still be overpriced. Use Price-to-Earnings (P/E) ratio to judge value. One good quarter isn’t enough — study 3–5 years of earnings and Net Asset Value (NAV).

“Price is what you pay. Value is what you get.” – Warren Buffett

Suggestion: Rely on long-term fundamentals, not short-term market noise.

📈 3. Look for Growth That Lasts

The real winners are companies with steady, sustainable growth. A consistent 15–20% annual earnings increase signals strong momentum.
Don’t get distracted by a single “big profit year.”

Suggestion: Separate temporary performance from sustainable earnings power.

💵 4. Dividends + Capital Gains = Total Return

Stocks reward you in two ways: dividends and price appreciation. Strong firms usually deliver both. Dividends show financial health; capital gains grow wealth.

“In the long run, it’s not the market, it’s the business that pays you.”

Suggestion: Assess total return, not just share price movements.

🌍 5. Can the Business Survive the Future?

Ask whether the company has a durable future. Does it dominate its industry? Can it expand? Does it have a “moat” — something unique that protects it from competitors?

Suggestion: Sustainable competitive advantage is the best predictor of long-term value.

🕰 Patience Is the Edge

The stock market rewards discipline, not impulsiveness. Quick wins may tempt you, but steady investing creates wealth.

“The best time to invest was yesterday. The second-best time is today.”

Golden Rule: Buy low, sell high — but only after doing your homework.

As Benjamin Graham, the intellectual father of the investment profession, stipulated: “An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.” An investor builds a robust thesis grounded in evidence, not emotion. This approach embodies the principle famously articulated by legendary investor Peter Lynch. “Know what you own, and know why you own it.”

Quick Market Pulse: The DSE just saw daily turnover cross Tk 12 billion, the highest in over a year—driven by surging activity in textiles, pharmaceuticals, and insurance. That’s a bright flash of liquidity lighting up the cornfields of investor optimism. Meanwhile, on August 25, the benchmark DSEX index climbed to 5,455.40, gaining 66 points (1.23%). Blue-chips (DS30), Shariah, and large-cap indices also rose in tandem. This momentum is sweet—but behavioral traps are hiding in plain sight.

Investor Biases in Bangladesh

In the DSE’s upward currents, human hearts race. Here’s what to watch:

Herding: Buying because everyone else is. Broker tips, media buzz, social rumour—they can all dilate prices beyond fundamentals.
Overreaction: Headlines trigger sharp swings, but those moves often wobble back once reality lands.
Optimism bias: Assuming good outcomes are more likely than they really are—easy to do in a rising market.
Media narratives: Stories feel powerful. But stories don’t pay your bills—fundamentals do.
Feedback loops: Price gains make investors bolder, leading to more gains… until gravity strikes.

Why It Matters for the DSE

The Bangladesh market responds swiftly to policy updates, macro surprises, and foreign fund flows. Bias-driven overexuberance can steer money toward glitzy tales rather than healthy fundamentals. Over time, that trust erodes—and so do returns.

Staying Disciplined—Your Personal Playbook

Here’s how to balance the heart with the head:

Checklists and Pre-commitment: Draft a Bangladesh-specific checklist before you trade—valuation, liquidity, catalysts, risks. Write your thesis and your exit strategy upfront.
Risk Budgeting: Cap each trade to 1–2% of your portfolio. Scale with overall volatility, not just market mood.
Scenario Analysis: For every bullish angle, sketch a credible bear case. Test strategies across rising, flat, and volatile regimes.
Diversify Sources: Don’t rely solely on news or social feeds. Cross-check with earnings reports, flow data, and independent insights.
Evidence-based Metrics: Focus on cash flow, ROIC, margin of safety—not hype.
Calm Routines: Pause before reacting to major headlines. Flip through your emotional drivers before trading.
Performance Diagnostics: Review trades—was your success skill or luck? Do post-mortems when rallies exaggerate.

Quick Exercise (1–2 Weeks)

Pick 3–5 rising DSE stocks with strong fundamentals.
Write one paragraph bullish thesis and one paragraph bear thesis for each.
Track daily headlines for each stock; tag them as supportive, neutral, or conflicting.
At the end, compare actual moves with your thesis—and refine your approach.

Final Word

Bangladesh’s stock market brims with opportunity—and with behavioral landmines. Sustainable growth demands more than trading platforms or reforms; it depends on investor self-awareness. By mixing financial literacy, behavioral nudges, and disciplined processes, we can help shape a DSE that’s transparent, resilient, and investor-friendly—for institutions, individuals, and the nation.

As Bangladesh emerges from years of economic turmoil, a rare combination of circumstances is enabling the country’s capital market to roar back to life. Thanks to structural reforms, improving external balances, and a stabilizing macroeconomic environment, the conditions for a long-awaited bull run are finally coming together. For investors who are willing to look past short-term fluctuations, this might be a once-in-a-lifetime opportunity.

A reform-driven stability

For years, market dynamics were suppressed and investor confidence was weakened by strict administrative controls on stock prices, interest rates, and exchange rates. But since the middle of 2024, the interim government has been implementing significant policy changes that have begun to buck that trend.
The benchmark for business Google News Subscribe to The Business Standard’s Google news channel to stay up to date.

Results are starting to emerge from Bangladesh Bank’s stringent monetary tightening and market-based reforms. Inflation peaked in July 2024 at 11.66%, but it has since dropped to 8.5% as of June 2025, with potential for further growth. Foreign reserves have grown from $18.6 billion to roughly $25 billion, and the local currency has stabilized after years of volatility.

By updating mutual fund and listing regulations through the formation of task forces and focus groups with practitioners and experts, the BSEC has accelerated market governance reforms in the interim. Important changes have been made to increase transparency and protect investors, including allowing conversions from closed-end to open-end funds, imposing stricter deadlines for dividend transfers, requiring independent directors for listings, and imposing penalties for violations of shareholding laws.

A rise in the balance of payments indicates external stability.

Bangladesh’s external situation has significantly improved. The overall balance of payments deficit dropped from $5.89 billion to $1.15 billion in May 2025. The current account deficit dropped by an astounding 85% in the first nine months of FY25, from $4.4 billion to just $659 million.

Exports and remittances, the two primary sources of foreign exchange inflows, are becoming more powerful. Between July 2024 and March 2025, remittances rose by nearly 28%, and in May 2025, exports reached an 11-month high of $4.74 billion. These debt-free inflows are significantly cushioning the economy.

A decline in interest rates is anticipated.

Bangladesh Bank has been gradually shifting from a tight monetary stance to growth-supportive policies while still managing inflation risks, as evidenced by recent actions like the purchase of US dollars, targeted liquidity injections in weaker banks, and a 50 basis point reduction in the Standing Deposit Facility (SDF) rate.

As yields fall from their historical highs, the conditions are favorable for an optimistic response from equity markets.

Equities: Undervalued and prepared for repricing

Due to investors’ collective memory of the preceding four years, which were only marked by steep market declines and ongoing uncertainty, equity valuations are incredibly low. The benchmark index, which remains at 5,100, reflects sentiment more than fundamentals. However, many high-quality companies—those with strong governance, low leverage, and solid earnings capacity—are quietly strengthening their positions as their weaker peers falter.

Stocks are poised for a re-rating, with valuations at multi-year lows and earnings momentum increasing. The initial signs are already visible:

High-quality companies are proving resilient in the face of macroeconomic difficulties.
Treasury yields have been historically high, but as monetary easing begins, they are now falling.
The central bank’s targeted liquidity injections are making all asset classes more stable.

Before an apparent economic recovery, markets usually rise. If you wait for perfect macro clarity, you might miss the most pronounced part of the upturn.

A dual opportunity: Bonds and stocks in line

It is rare for fixed income and stocks to offer appealing opportunities simultaneously. Nonetheless, longer-term government treasuries with yields above 12% are now eligible for capital gains as interest rates begin to drop. On the other hand, stocks are still priced for pessimism even though the fundamentals are improving.

Asset allocators have a rare chance to rebalance their portfolios toward growth assets at incredibly enticing entry points. A strategic allocation to long-duration bonds along with selective equity exposure could soon yield high risk-adjusted returns.

Why it’s critical to take action immediately

Numerous enduring economic issues, including non-performing loans, a waning desire for private investment, and the vulnerability of the banking industry, have yet to be resolved by policymakers. Although these risks are real, they are growing increasingly disparate. While most of the negative news is already factored into current equity valuations, upside catalysts that have not yet been reflected in price include a dovish central bank stance, improving fiscal health, and corporate resilience.

The chance to purchase high-quality assets at distressed prices is not likely to persist indefinitely. When market sentiment shifts, which it will eventually, early investors will benefit the most. This is not merely an opportunity; it is a test of conviction.

A chance for future generations

Bangladesh’s capital market has long been regarded with suspicion and disregard. But as capital moves from stagnation to growth, the next cycle could be revolutionary. It is clear that in order to fully capitalize on this momentous occasion, institutional investors and responsible asset managers must act now with discipline and focus.

Those who recognize opportunities when others are paralyzed by fear are the most successful investors. Things are changing in Bangladesh. The most transformative wealth will be produced by those with the foresight to act early.

Investing in the Dhaka Stock Exchange (DSE) can be a rewarding way to grow your wealth, but it’s essential to approach it with a clear strategy and a good understanding of the process. This guide provides a simple, step-by-step roadmap for beginners to start their investment journey in Bangladesh.

Step 1: Lay the Foundation and Set Your Goals

Before you open an account, you need to prepare yourself financially and mentally.

Define Your Investment Goals: What are you saving for? Is it retirement, a down payment on a house, or a child’s education? Your goals will influence your investment strategy, risk tolerance, and time horizon.
Establish an Emergency Fund: Ensure you have a financial safety net in place. This fund should be enough to cover several months of living expenses in case of an unexpected event, so you don’t have to sell your investments at an unfavorable time.
Pay Off High-Interest Debt: If you have high-interest debt, such as credit card balances, it’s often more financially sound to pay that off first. The interest you pay on the debt is likely to be higher than the returns you’d get from investing.
Understand Your Risk Tolerance: The stock market is volatile. Understand how much risk you are comfortable with and choose investments that align with that level of risk.

Step 2: Open a Beneficiary Owners (BO) Account

A BO account is a mandatory dematerialized account that holds your shares electronically. It is the first and most crucial step to start trading.

Choose a Brokerage House: Research and select a brokerage firm (known as a “stock broker”) that is a member of the DSE. Many brokerage houses in Bangladesh now offer online account opening and trading services, making the process much easier. Look for a firm with a good reputation, a user-friendly trading platform (mobile app or web-based), and responsive customer support.
Gather Required Documents: You will need a set of documents for the BO account opening. The requirements may vary slightly between brokerage houses, but generally include:
- National ID (NID) card or passport.
- Two passport-sized photographs of the applicant.
- Bank account details (a copy of a cancelled cheque or a bank statement).
- Nominee’s photo and NID (if you choose to have one).
- TIN (Taxpayer Identification Number) is not mandatory for account opening but is required to avoid paying a higher tax rate on dividends and capital gains.
Fill Out the Form: Complete the BO account opening form provided by the brokerage house. This can often be done online through their website or app.
Pay the Fees: There are usually one-time and annual fees for opening and maintaining a BO account. These fees cover the charges from the brokerage house and the Central Depository Bangladesh Limited (CDBL).

Step 3: Fund Your Account

Once your BO account is active, you need to deposit money into it to buy shares.

Deposit Funds: You can typically transfer money to your BO account in several ways, including online bank transfers (BEFTN, NPSB), mobile money services (bKash, Nagad), or by visiting the brokerage house’s branch.
Minimum Deposit: The amount you can start with can vary. While you can start with any amount, it’s often recommended to have at least BDT 20,000 to 30,000 to apply for Initial Public Offerings (IPOs) and trade in the secondary market.

Step 4: Research and Select Stocks

This is where your investment journey truly begins.

Do Your Homework: Before buying any stock, research the companies you are interested in. Look at their financial statements, earnings reports, and the overall industry outlook.
Understand the Market: Pay attention to DSE market trends, daily gainers and losers, and sector performance. Follow financial news and analyses to stay informed.
Consider Diversification: Don’t put all your money into a single stock. Diversifying your investments across different companies and sectors can help reduce your risk.
Use Analysis Tools: Utilize fundamental analysis (looking at a company’s financial health) and technical analysis (studying price charts and market data) to make informed decisions.

Step 5: Place Your First Trade

Use the Trading Platform: After choosing a stock, you can place a buy order through your brokerage’s online trading platform or mobile app. You can also place an order by calling your broker’s authorized representative.
Understand Order Types: Learn about different types of orders (e.g., market order, limit order) to execute your trades effectively.
Track Your Portfolio: Once you have bought shares, regularly monitor their performance. Review your portfolio periodically to see if you need to make any adjustments.

Key Investment Tips for Beginners

Start Small: Don’t invest a large sum of money all at once. Start with an amount you are comfortable with and gradually increase your investment as you gain experience and confidence.
Invest for the Long Term: The stock market is not a get-rich-quick scheme. Focus on long-term growth rather than short-term gains, and be patient through market fluctuations.
Avoid “Hot Tips”: Never invest based on rumors or unverified information. Always do your own research before making a decision.
Continuous Learning: The market is dynamic. Stay informed by reading financial news, books, and articles to improve your knowledge and skills.

Bangladesh and India have embarked on a collaborative effort to enhance trade routes by utilizing each other’s ports for third-country trade. A delegation from Dhaka set out on Saturday to inspect Indian ports and engage with relevant authorities as part of this initiative.

Currently, Bangladesh exports goods via ports in Singapore, Sri Lanka, and Malaysia but eyes utilizing Indian ports in Tamil Nadu’s Chennai, Andhra Pradesh’s Visakhapatnam and Krishnapatnam, and West Bengal’s Haldia. India, in turn, plans to utilize Chattogram Port in Bangladesh for its own trade with third countries.

The 16-member delegation, led by SM Mostafizur Rahman from Bangladesh’s shipping ministry, includes representatives from shipping, commerce, foreign affairs ministries, and various trade bodies. They are scheduled to stay in India from July 6-12, visiting multiple ports and engaging in discussions with stakeholders.

India and Bangladesh have existing transhipment agreements allowing Bangladesh to use Indian infrastructure for exports to Nepal and Bhutan. Now, India seeks to export goods or facilitate imports through Chattogram Port’s Bay Terminal, currently under construction.

This bilateral effort follows high-level approvals and agreements reached during talks between Dhaka and New Delhi in December 2023. It involves reciprocal visits, with India planning to send its own delegation to Bangladesh after the current visit.

The Bay Terminal project at Chattogram Port, initiated a decade ago, aims to significantly expand port capabilities. Recently approved funding from the World Bank underscores its importance in regional trade dynamics. Scheduled for completion by 2027, it is expected to bolster logistics capacity for both countries, ensuring mutual economic benefits without favoring one nation over the other.

Prime Minister Sheikh Hasina’s 2022 visit to India catalyzed discussions on leveraging Indian ports for Bangladeshi exports to third countries. The ongoing collaboration is set to enhance regional connectivity and economic opportunities through strategic port development and mutual cooperation agreements.

Source: TBS News

The Roads and Highways Department (RHD) is formulating a master plan to integrate the country’s road network through 12 expressway routes, aiming for enhanced internal and cross-border connectivity by 2041. This project, requiring an investment of Tk1.91 lakh crore ($17.28 billion), will expand 1,508km of roads.

Syed Moinul Hasan, RHD’s chief engineer, explained that the master plan aims to unify the nation’s highways into a cohesive network. The Asian Development Bank has drafted the “Highway Master Plan 2041,” and an implementation strategy will be developed once the draft is approved next year.

Funding and Implementation

The 12-expressway plan, spanning 10-12 years, requires annual funding of $1.5 billion. The government will prioritize public-private partnerships (PPP) for construction. Financing decisions will be managed by the Finance Division and the Economic Relations Division.

Previous efforts to construct expressways on the Dhaka-Chattogram route were abandoned due to high costs and the feasibility of a high-speed train line. Instead, the route was upgraded to a four-lane highway. Currently, the Dhaka-Bhanga expressway is the country’s sole access-controlled expressway, connecting the capital with southwestern regions via the Padma Bridge.

Expert Opinions and Future Prospects

Experts highlight the importance of such infrastructure for sustainable development. Neighboring countries implemented similar plans in the 80s/90s. Despite potential challenges, expressways are essential for Bangladesh’s growth.

The proposed expressways include:

Dhaka-Chattogram (and elevated)
Dhaka-Mymensingh
Dhaka-Sylhet
Dhaka Outer Ring Road
Dhaka-Bogura
Mirsharai-Cox’s Bazar (via Bangabandhu Tunnel)
Mymensingh-Bogura
Gabtoli to Paturia (upgrading existing)
Feni-Barishal
Paturia-Daulatadia
Jhenaidah-Khushtia-Dasuria

Dr. Mohammad Yunus of BIDS emphasizes the need for infrastructural changes to achieve developed country status. He suggests that while the current economic situation precludes big projects, the master plan should be prepared for future implementation.

Mohammad Emdad Ullah Mian of the Planning Commission calls for integrated master plans covering road, rail, rural roads, and waterways. Communication expert Md Shamsul Hoque of BUET supports the strategic shift from traditional highway construction to elevated ways, maximizing land use without requiring additional space.

Cross-Border Connectivity

The master plan predicts a nearly 350% growth in cross-border goods flow, supported by developing value chains. It will consider multiple highways linking sea and land ports with major border points, aligned with the South Asia Subregional Economic Cooperation (SASEC) initiative.

Previous and New Plans

Past plans, including a Dhaka-Chattogram expressway and elevated expressway, were scrapped due to high costs and the viability of high-speed trains. The new master plan is more inclusive, addressing both internal and cross-border connectivity.

Source: TBS News

Understanding Bangladesh’s economy requires a comprehensive view of remittance flows. While the formal sectors like manufacturing struggle, the rural economy thrives significantly due to remittances.

Estimating Remittance Inflows

Accurate data is challenging, but remittances play a critical role. Estimates suggest Bangladesh receives between $30 billion and $60 billion annually, with official channels accounting for about $25 billion. The informal ‘hundi’ system potentially handles between $5 billion and $35 billion. Estimations of the number of people sending remittances range from 10 to 15 million, with a high-end estimate of 15 million workers abroad.

According to the 2022 Household Income and Expenditure Survey (HIES) by BBS, 8.3% of households receive remittances. With 38.3 million households, this means about 3.2 million individuals are sending money home. The average remittance was Tk 257,000 ($3,000) annually, and recent bank estimates suggest this has increased to $4,000.

For 2022, with 15 million workers, remittances totaled $45 billion: $22 billion via banks and $23 billion through hundi. By 2024, with 15.5 million workers and an average remittance of $4,000, total remittances could reach $62 billion, with $24 billion through banks and $38 billion via hundi.

The Role of the Hundi System

The hundi system’s substantial role indicates more than half of remittances come through informal channels. The projected $62 billion in 2024 aligns closely with expected exports. The remittances help alleviate poverty and mitigate inflation’s effects, especially in rural areas where $50 billion is directed, versus $12 billion in urban areas.

Economic Implications

Adjusting the 2022 balance of payments reveals a different economic landscape. Under-invoicing of imports, estimated at 20%, adds $20 billion, and capital flight through hundi accounts for approximately $1 billion. This suggests a more robust economy than perceived, driven by significant remittance flows that benefit rural development and reduce unemployment.

Challenges of Under-Invoicing

Under-invoicing imports result in revenue loss, higher foreign exchange costs, and customs corruption. Despite ending the Pre-Shipment Inspection (PSI) program, under-invoicing remains prevalent, particularly with imports from China and India. The government loses revenue, and importers may choose costlier sources, depleting foreign exchange reserves.

Conclusion

Bangladesh’s economy is more resilient than often recognized, thanks to the massive influx of remittances. These funds support rural construction and goods purchases, creating a multiplier effect that boosts local economies. Despite challenges like high food inflation, remittances significantly enhance rural living standards and economic stability.

Source: Dhaka Tribune