Dhaka Appoints International Firms to Repatriate Stolen Assets

The Bangladeshi government has launched an extensive international asset-recovery operation to reclaim billions of pounds in defaulted loans smuggled overseas through systemic banking fraud and high-level corruption. Dhaka has signed formal Non-Disclosure Agreements (NDAs) with nine prominent international law firms to track, freeze, and eventually repatriate these stolen public funds. Operating on a strict “no win, no fee” contingency basis, this legal offensive will initially target critical high-profile cases across roughly 30 heavily damaged domestic banks. The first phase focuses squarely on six high-profile entities and individuals: former Land Minister Saifuzzaman Chowdhury, controversial tycoon S. Alam, and the prominent corporate conglomerates Beximco, Sikdar, Nassa, and Orion.

Finance Minister Amir Khasru Mahmud Chowdhury disclosed the strategic cross-border legal framework in Parliament on Wednesday during a comprehensive question-and-answer session presided over by Speaker Hafiz উদ্দিন Ahmed. Replying to a formal legislative inquiry tabled by Kurigram-1 MP Anwarul Islam, the Finance Minister explained that these global legal institutions will provide deep forensic and litigious support to domestic banks. Their primary mandate involves untangling complex offshore wealth networks, locating hidden real estate, and identifying shell companies established by the accused defaulters. The administration plans to expand this legal dragnet to encompass additional individuals and business groups in successive phases.

A Comprehensive Portrait of the National Financial Landscape

During the parliamentary session, the treasury bench addressed a wide array of specific inquiries regarding public finances, national liabilities, and ongoing economic relief schemes. To provide an accessible overview of the vast statistical data presented before the house, the key macroeconomic parameters and banking sector performance indicators have been consolidated into the following analytical record:

Restructuring Islamic Lenders and Safeguarding Savers

Addressing separate queries regarding the severe liquidity squeeze gripping the domestic financial market, the Finance Minister confirmed that five troubled Sharia-compliant institutions—Exim Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank, and Union Bank—have now been placed under the strict regulatory oversight of the Bank Resolution Scheme 2025.

To reassure panicked small savers and maintain confidence in the retail banking grid, the Minister highlighted that the statutory payout threshold under the newly enacted Deposit Protection Act 2026 has been doubled from 100,000 Taka to 200,000 Taka. This legal guarantee ensures that retail depositors receive immediate, protected compensation up to this revised limit whilst structural restructuring gets under way.

The central bank has already injected 12,000 crore Taka from the Deposit Protection Fund directly into the current accounts of the Combined Islamic Bank network to restore baseline operational stability. Specialized central bank departments are assessing other illiquid lenders. Further interventions under the statutory rules of the Bank Resolution Act 2026 remain on the table should local boards fail to stabilise their cash reserves.

Broadening the Value Added Tax Base to Local Retailers

Looking forward to the upcoming 2026-27 fiscal year, the government intends to expand its domestic tax revenue collections substantially by introducing structural adjustments to the national Value Added Tax framework. This proposed tax net expansion will bring a large segment of consumer-facing retail operations under mandatory VAT compliance, directly touching neighbourhood grocery shops and high-street businesses.

The upcoming fiscal directive will apply broadly across several sectors, including clothing retailers, confectioneries, cosmetics boutiques, plastic and ceramic household shops, footwear outlets, and hardware businesses. Additionally, firms selling electronic equipment—such as mobile phones, air conditioning units, refrigerators, and ovens—will face standard VAT reporting alongside local suppliers of paints, sanitary fittings, tiles, corrugated iron sheets, iron rods, and cement. Sweet shops, furniture showrooms, and restaurants will also be systematically integrated into this modernized revenue collection programme to minimize the state’s budget deficits.