Adverse weather has reduced jute yields this year, while export restrictions have weakened demand and pushed down prices, raising fears of losses among farmers.

Farmers said they expanded jute acreage after receiving good prices last year. However, excessive rainfall forced many to harvest the crop earlier than usual, resulting in lower yields.

Traditionally, lower supply supports higher prices, but farmers and traders said the suspension of raw jute exports to India had reduced demand in the local market.

Prices of good-quality raw jute have fallen by around Tk 1,200 per maund over the past one-and-a-half months. Rising production costs have further squeezed farmers.

FARMERS COUNT LOSSES

According to the Department of Agricultural Extension (DAE), the government has set a target of cultivating jute on 708,282 hectares in the 2026-27 season, with a production target of 85.21 lakh bales.

Data from the Bangladesh Bureau of Statistics (BBS) shows projected jute cultivation in FY2025-26 was 2.31 percent lower than FY2024-25, while production was expected to decline by 1.89 percent year-on-year.

Several farmers in Faridpur, Rajbari and Magura said yields per bigha had declined this season.

Sukontho Pal, a jute farmer from Boalmari upazila of Faridpur, said production costs had increased while yields had declined.

“Good-quality jute is now selling for a maximum of Tk 4,000 per maund, whereas I received around Tk 4,500 last year,” he said.

“Production costs per bigha have increased by Tk 4,000 to Tk 5,000 from last year. At the current market price, we cannot even recover our production costs.”

Md Siam Mallik, a farmer in Baliakandi upazila of Rajbari, blamed excessive rainfall for lower yields.

“Most farmers were forced to harvest jute 15 to 20 days earlier than usual due to excessive rainfall. As a result, yields fell by two to four maunds per bigha,” he said.

Naba Kumar Kundu from Magura Sadar upazila said farmers earned Tk 12,000 to Tk 15,000 per bigha last year when jute prices were high.

“The situation is completely different this year. It is difficult for farmers to make a profit unless jute prices remain above Tk 4,500 per maund,” he said.

“Good-quality jute is now selling for a maximum of Tk 4,000 per maund, whereas I received around Tk 4,500 last year,” said Sukontho Pal, a jute farmer from Faridpur

TRADERS UNDER PRESSURE

Md Mahmudur Nabi, a jute trader in Pabna Sadar upazila, said farmers and traders were both suffering due to low prices.

“It costs us more than Tk 4,200 to buy a maund of jute from the market and transport it to a jute mill. But mill owners are unwilling to buy jute at this price and want to purchase it at even lower rates,” he said.

Md Aktaruzzaman Chan, a trader at one of Faridpur’s largest jute markets, said prices had become unpredictable.
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“We cannot understand the market trend this year. Jute that was selling for Tk 5,200 per maund suddenly fell to Tk 3,500. It has recovered somewhat to Tk 3,800, but we do not know whether prices will rise further as demand in the market remains low,” he said.

Moktar Molla, president of the Faridpur Jute Farmers Association, said production costs had risen by Tk 4,000 to Tk 5,000 per bigha.

He said jute prices had fallen from Tk 5,200 to Tk 4,000 per maund in one-and-a-half months, while yields declined by two to three maunds per bigha. Farmers spend Tk 3,500 to Tk 3,800 to produce a maund.

He warned that farmers could lose interest in jute cultivation if they failed to receive fair prices.

“The price of jute has fallen because exports of raw jute remain suspended,” he alleged.

EXPORT CURBS HURT DEMAND

Khandaker Alamgir Kabir, chairman of the Bangladesh Jute Association, said local demand for jute is around 60 lakh bales annually, while production is expected to exceed 80 lakh bales this year.

He said the surplus has traditionally been exported, but the then interim government had imposed conditions on raw jute exports on September 8, 2025.

“We thought the conditions would be withdrawn after a while,” Alamgir said.

The restrictions have prevented farmers from getting expected prices, he added.

“Since the conditions were imposed, we repeatedly requested the adviser to the then interim government responsible for the jute ministry, as well as the minister of the current government, to withdraw them. But no one is listening to us,” he said.

Md Rishad Abdullah, chief scientific officer at the Bangladesh Jute Research Institute, Faridpur station, said farmers usually cultivate the GRO-524 variety of jute, which is vulnerable to excessive water.

“Many farmers harvested jute before it reached full maturity,” he said, adding that it lowered quality and prices.

Mizanur Rahman, assistant director of the Department of Jute in Faridpur, said cultivation had increased this year as farmers received good prices last year.

“Jute production is also expected to be higher this year. However, the suspension of raw jute exports has reduced demand in the market, which has affected prices. If raw jute exports resume, prices could reach Tk 5,000 to Tk 5,500 per maund,” he said.

Asked whether any measures were taken to raise prices, Mizanur Rahman said their office only conveys concerns to higher authorities as it cannot make policy decisions.

Bangladesh's tea industry is producing more, yet it is struggling to compete globally. At the heart of the problem is a stubborn productivity gap – the amount of tea produced per hectare remains far below that of major tea-producing countries.

This low yield pushes up the cost of each kilogram of tea, weakening Bangladesh's competitiveness in international markets. Overall tea production has continued to rise, but the increase in output has failed to translate into higher export earnings.

Much of the additional production is being absorbed by strong domestic demand, while the industry also faces a narrow product mix and a lack of strong international brands.

Tahsin Ahmed Chowdhury, chief operating officer of Finlay Tea Company, said Bangladesh produces around 1,400kg of tea per hectare, compared with about 3,500kg in Kenya and 3,200-3,300kg in Vietnam.

"Because of the low yield, production costs rise, making Bangladeshi tea less competitive in the international market," he said.

The productivity gap translates directly into costs. Mohammad Moazzem Hossain, member and joint secretary of the Bangladesh Tea Board's Research and Development Department, said producing a kilogram of tea costs Tk200-220 in Bangladesh, against Tk100-150 in countries such as India and Sri Lanka.

That cost gap makes it difficult for Bangladesh to compete on price, particularly against producers extracting far more tea from the same land.

Domestic demand is tightening the squeeze. Bangladesh produces around 95 million kgs of tea annually, while more than 90 million kgs is consumed at home, Moazzem said. That leaves a shrinking surplus for export.

The industry is also stuck heavily in black tea, even as global demand expands for green, white, dark, and jasmine varieties. Tahsin said Chinese and Japanese producers command higher prices by branding and adding value to organic, white and jasmine teas.

"Bangladesh also needs to focus on value-added tea alongside black tea to increase exports," he said.

A weak international brand presence compounds the problem. Kazi Arfan Ullah, manager of MM Ispahani Ltd's Neptune Tea Estate, said Bangladeshi producers lack internationally recognised brands. Tea bought through local auctions is generally marketed abroad by distributors, leaving Bangladesh without a strong global tea identity.

Industry stakeholders say raising productivity and efficiency must be the priority, alongside cutting costs, diversifying products and building international brands.

Moazzem said initiatives are being taken to reduce tea prices, improve workers' living standards and install solar power in tea estates. Tahsin said unused estate land could generate solar power and support other agricultural activities, creating additional income and easing production costs. He also called for lower interest rates on industry loans.

Export earnings fall despite rising production

Bangladesh's tea export earnings have declined over the past decade despite fluctuations in production. Export revenue fell from $4.47 million in fiscal 2016-17 to $3.33 million in 2025-26, a decline of $1.14 million or 25.5%.

Earnings fell to $2.77 million in 2017-18 and $2.82 million in 2018-19 before recovering to $3.12 million in 2019-20 and $3.56 million in 2020-21. They then dropped to a decade-low $2.14 million in 2021-22.

Export earnings recovered to $2.34 million in 2022-23, $3.54 million in 2023-24 and $4.10 million in 2024-25. However, earnings fell by $770,000, or 18.8%, to $3.33 million in 2025-26.

Production figures show a different trend. Tea output in January increased from 175,000 kg in 2024 to 309,000 kg in 2025 and 573,000 kg in 2026. January 2026 production was therefore 264,000 kg higher than a year earlier and 398,000 kg higher than in January 2024, making it the highest January output in the three years.

The figures underline the sector's central dilemma: Bangladesh can increase overall tea production, but unless productivity improves and production costs fall, higher output alone will not make its tea more competitive internationally.

For the industry to overcome its long-standing export stagnation, stakeholders say Bangladesh must raise yields, improve efficiency and move beyond bulk black tea towards differentiated, value-added products supported by strong international brands.

Bangladesh's economic recovery will be delayed; claims that the economy will turn around within a year are exaggerated, said Debapriya Bhattacharya, distinguished fellow at the Centre for Policy Dialogue (CPD).

The recovery process has not gained as much momentum over the past six months as it should have, largely because of a lack of political courage and capacity on the part of the government, he added.

Debapriya made the remarks at a programme organised by the CPD yesterday afternoon to review the economic performance of the current government during its first six months.

At the review, held at the CPD's office in Dhanmondi, Dhaka, the think tank analysed 362 measures taken by the government over the past six months across nine key sectors. The programme highlighted which measures the CPD considered reassuring and which caused concern.

"I want to give them [govt] an 'A' grade, but the circumstances are dragging them towards a 'B'."

According to the CPD, the country witnessed a mixed picture in terms of the economy and good governance over the past six months. Overall, the balance has tilted more towards discomfort than relief. Of 31 key economic indicators assessed by the CPD, 19 deteriorated, while only 12 improved.

Assessing the government's overall performance, he said, "I want to give them an A grade, but the circumstances are dragging them towards a B." This means good initiatives are being undermined by weak capacity and a lack of coordination, he added.

Referring to a recently published survey showing that the prime minister is more popular than the government, Debapriya said, "The biggest challenge now is whether he can use that popularity to demonstrate political courage, put his party on the right track and manage the bureaucracy properly."

Good governance, justice, public administration

The CPD said several initiatives were reassuring, including scrapping duty-free cars and government plot facilities for MPs; austerity measures, particularly the prime minister depositing 10% of his salary into the treasury; reducing ministers' protocol; suspending government vehicle purchases; cutting food expenses; and introducing an AI-based traffic management system in Dhaka.

On the other hand, political appointments to universities, state institutions and courts based on political identity have raised concerns about institutional neutrality. The continuation of extortion and land grabbing at the local level, mob killings, violence against women and children, and the lack of effective measures to control attacks on indigenous people and minorities have also caused concern.

Debapriya Bhattacharya said political appointments are highly unacceptable.

Public financial management

The CPD identified raising the tax-free income threshold, scrapping the opportunity to legalise undisclosed money (black money), providing a 5% tax rebate on payments of up to Tk25,000, and simplifying online e-return filing as positive initiatives.

On the other hand, the CPD expressed concern over the lack of initiatives to review public-finance expenditures related to government subsidies and tax expenditures, as well as the absence of specific measures to assess sovereign debt risks.

Industry and trade

The CPD considered the expansion of bonded warehouse facilities beyond the readymade garment sector; initiatives to privatise loss-making state-owned enterprises; the signing of 21 agreements, including studies on a Comprehensive Economic Partnership Agreement (CEPA) with South Korea and a joint Free Trade Agreement (FTA) study with China; and the creation of a "Startup Fund" for young and women entrepreneurs as reassuring measures.

At the same time, the closure of 95 factories in the industrial areas of Gazipur, Savar and Narayanganj between January and August, resulting in the loss of 61,881 jobs, and the shutdown of four of the country's five fertiliser factories – with only the Ghorashal-Palash plant operating – have created serious concerns.

Banking and financial sector

The merger of five troubled Islamic banks under the "United Islamic Bank" and the appointment of administrators to weak non-bank financial institutions as part of implementing the Bank Resolution Act 2026 were identified as positive initiatives.

However, Debapriya expressed concern over the sudden removal and replacement of the Bangladesh Bank governor and questions surrounding conflicts of interest and the central bank's independence; retaining the Financial Institutions Division under the finance ministry; and the liquidity crisis and rush to withdraw deposits triggered by controversy surrounding the appointment of a chairman at Islami Bank Bangladesh PLC.

Energy and transport

The CPD considers the introduction of a fully women-operated "Pink Bus Service" to ensure safe transportation for women, keeping electricity prices unchanged for low-income residential consumers, offering 25% fare discounts on the metro rail and trains for elderly and disabled people, and inviting international tenders for offshore gas exploration as reassuring initiatives.

However, the CPD described the continuing severe gas shortage affecting the textile, steel, paper and ceramics industries due to technical problems at the Maheshkhali LNG terminal and supply constraints, as well as the lack of visible steps to utilise Bhola's gas, as concerning.

Agriculture and rural non-farm sector

The CPD said waiving agricultural loans and interest of up to Tk10,000 and allowing banks to write off loans were reassuring measures.

However, the shutdown of fertiliser factories due to the gas shortage and increased dependence on imports, failure to make fertiliser available at government-set prices, and allegations of hoarding and illegal sales are creating concern, according to the organisation.

Education

The CPD described the declaration of free education for female students up to the undergraduate level, retaining the lottery system for primary-school admissions from 2027, directly transferring overdue benefits to MPO-listed teachers through EFT, and plans to distribute free clothing and shoes to students as positive measures.

The absence of a separate education reform commission, controversy over holding HSC examinations in Chattogram despite flooding, and the failure to begin full implementation of the PEDP-5 programme were identified as concerns.

Health

The CPD considers the withdrawal or reduction of VAT and duties on dialysis filters, heart stents, pacemakers, eye lenses and raw materials for cancer treatment to be reassuring measures.

However, it expressed concern over shutting down the 5th Health Programme without an alternative arrangement, weaknesses in the measles vaccination programme despite an ongoing outbreak, and the failure to formulate a new policy for determining medicine prices.

Social welfare and social protection

Since taking office, the government has distributed 20,832 Farmers' Cards, 70,861 Family Cards and 300 Sports Cards across the country. These are positive initiatives.

However, there have been widespread local-level complaints of political influence and a lack of transparency in selecting Family Card beneficiaries, which is concerning.

Recovery scorecard

The CPD reviewed 31 indicators across six major sectors of the economy. According to the organisation, 19 of the 31 indicators deteriorated, while 12 improved.

The CPD said there had been improvements in non-NBR tax collection, ADP implementation and net deficit financing over the six-month period.

Meanwhile, NBR revenue, total tax collection, bank borrowing and net foreign assistance deteriorated.

According to the CPD, per-capita external debt stood at $55,129.9 at the end of March, up from $48,166 in March 2025. During the period, headline inflation fell to 8.3%, food inflation to 7.2%, while the wage index increased.

The situation deteriorated in terms of broad money supply and excess liquidity in banks.

Export growth stood at 3.5%, while imports grew by 18.1% and the opening of letters of credit for intermediate goods increased. Foreign-exchange reserves rose to $32.3 billion.

However, remittance growth fell to 11.8%. Overseas employment declined, the taka depreciated, the trade deficit increased to $10.4 billion and the current-account deficit widened.

The CPD said there had been no improvement in any indicator of industrial production. Progress in overall industrial production and the manufacturing sector was zero.

Regarding investment, the organisation said that although imports of capital machinery had grown, it was unclear whether this represented an actual increase in investment. Net foreign direct investment had fallen to $594 million by the end of June. The opening of letters of credit for capital machinery declined, while private-sector credit growth fell to 4.5%.

The CPD said that although there had been progress in the mineral production index in the energy and power sector, this was having no impact on the economy. Rather, declining power generation and lower industrial gas consumption were contributing to the crisis.

What needs to be done

Against this complex economic backdrop, the CPD has recommended five urgent measures for the government.

The organisation said the government should formulate a "core budget", whether or not it publishes it. A concise and realistic core budget based on actual data should be prepared for the period from October 2026 to June 2027.

There could be a revenue shortfall of around Tk1.3-1.4 lakh crore in the next fiscal year. Spending priorities should therefore be determined with this shortfall in mind.

A comprehensive reform package is also needed, it said. Specific reforms should be outlined for energy security, restructuring the banking sector, splitting the NBR into two entities, rationalising the ADP and the work of the Pay Commission.

As an urgent measure, the government should accelerate the programme to drill 150 gas wells inside the country instead of relying on expensive LNG imports.

The organisation proposed that by September 2026, the finance minister should present a roadmap to parliament outlining plans for banking-sector restructuring, a new pay scale, power-sector reforms and the broader economic situation and reform agenda.

The CPD said the government must move away from political influence and entrenched interest groups in banking, energy and contract-awarding processes and strengthen institutional capacity and good governance. "Simply changing people cannot provide a lasting solution."

Most listed mutual funds posted hefty profits in FY26, riding a strong rebound in the stock market, but the earnings recovery brought little relief to unitholders as most of the funds skipped dividends due to accumulated losses from previous years.

The aggregate profit of 15 closed-end mutual funds, which published audited financial statements for FY26, climbed to Tk 1.44 billion from only Tk 24.4 million a year earlier. What is more significant is that 11 of the funds returned to profit in FY26 after incurring losses in the previous year.

Sixteen others of the 34 listed pooled funds are under regulatory scrutiny, while three funds follow the calendar year -- January to December -- for financial reporting.

The turnaround came as the stock market staged a strong recovery during the year, helped by gradually improving investor sentiment and growing optimism over sweeping regulatory reforms after years of poor market performance.

The benchmark index of the Dhaka Stock Exchange (DSE) surged 20 per cent year-on-year in FY26, while turnover jumped 55 per cent during the period, reflecting increased investor participation and a recovery in share prices.

The funds that published their results are managed by ICB Asset Management, Strategic Equity Management, CAPM Advisory, AIMS of Bangladesh and Capitec Asset Management.

Mutual funds, as major institutional investors, benefit when the stock market performs well because a rise in share prices boosts capital gains and the value of their investment portfolios.

Akramul Islam, head of research at Royal Capital, said mutual fund returns largely depend on stock market performance, as fund managers earn from capital gains through buying and selling shares, in addition to dividends, interest income and other investment returns.

“With share prices of many listed companies recovering during FY26, fund managers were able to book significant capital gains,” he said.

Funds with diversified portfolios and exposure to fundamentally-strong companies particularly benefited from the market rebound as the prices of their underlying securities appreciated during the year.

Fund managers generally prefer blue-chip and fundamentally strong stocks to minimise investment risks. Blue-chip stocks gained about 20 per cent during the year, contributing substantially to the bottom-line growth of many mutual funds, according to market analysts.

The improved market conditions also enabled fund managers to rebalance their portfolios and take advantage of changing valuations, helping them realise gains from investments accumulated at relatively low prices during the prolonged market downturn.

Under the securities rules, mutual funds are required to invest at least 60 per cent of their total assets in listed securities and bonds, with the remaining portion allowed to be channelled into money market instruments.

In practice, however, many fund managers injected as much as 80 per cent of their assets into the capital market.

Among the closed-end funds, Capitec Grameen Bank Growth Fund, managed by Capitec Asset Management, posted the highest profit of Tk 165 million in FY26.

Grameen One: Scheme Two, managed by AIMS of Bangladesh, followed with a profit of Tk 150 million, while ICB AMCL Third NRB Mutual Fund reported a profit of Tk 140 million.

Most funds skip dividends despite hefty profits

Despite the sharp improvement in profitability, most of the funds have not declared dividends for FY26.

Of the 15 funds that published audited financial results, only four announced cash dividends ranging from 4 per cent to 10 per cent.

Reliance One, the first scheme of Reliance Insurance Mutual Fund, declared the highest dividend of 10 per cent cash. ICB AMCL First Agrani Bank Mutual Fund declared a 4 per cent dividend, while Capitec Grameen Bank Growth Fund and Grameen One: Scheme Two announced 9 per cent cash dividends each.

Except for ICB AMCL First Agrani Bank Mutual Fund, other closed-end funds managed by ICB Asset Management skipped dividend payments for FY26.

That is because the funds are still carrying substantial accumulated losses from previous years, said Investment Corporation of Bangladesh (ICB) Chairman Abu Ahmed.

The funds are required to maintain provisions against previous unrealised losses before considering dividend payments to unitholders.

The prolonged market downturn had caused significant erosion in the value of many portfolios, leaving the funds with negative retained earnings.

“As the funds had negative retained earnings due to previous losses, they were not in a position to pay dividends even after adjusting for this year’s improved earnings,” Mr Ahmed said.

He said the funds were launched when the stock market was at a very high level, and the subsequent sharp fall in share prices substantially reduced the value of their investments.

Although the market has recovered over the past year, the funds have not yet fully recovered their previous losses, he added.

Among the 34 closed-end mutual funds, 30 are trading at discounts. Market capitalisation of all these funds stood at Tk 30.7 billion, while the Assets under Management (AUM) stood at Tk 44.5 billion as of Sunday.

The country’s economic stabilisation remains fragile, and the recovery is likely to take longer than the government expects, said Debapriya Bhattacharya, distinguished fellow of the Centre for Policy Dialogue (CPD).

“Although several government leaders have said the recovery will take one to two years, the country is heading for a prolonged recovery,” he said while presenting a paper at a CPD media dialogue on the government’s performance over the past six months at its office yesterday.

Over the past six months, CPD found that 19 of 31 economic indicators deteriorated, and many of the negative trends were structural.

Debapriya said a longer recovery will require a core fiscal budget and the effective implementation of an integrated and coordinated reform package.

Assessing the government’s performance, the economist described the economic situation over the past six months as “mixed”, with negative trends outweighing positive ones. Many of those negative trends are entrenched and structural, he said.

The CPD assessed 31 economic indicators. Of these, 12 improved, including foreign exchange reserves, while 19 deteriorated over the past six months.

Among the indicators, revenue growth, government bank borrowing, remittance growth, overseas employment and the balance of payments all worsened.

By contrast, export growth, food inflation and implementation of the annual development programme improved compared with the same period a year earlier.

According to CPD, the government inherited weak banks, poor revenue mobilisation, fiscal constraints, subdued investment and an adverse global environment. The US-Israel war on Iran and volatility around the Strait of Hormuz have also sent energy shock waves across the world.

The local think tank reviewed 362 observations across nine areas to assess the government’s performance. Some measures offered grounds for optimism, while others raised concerns.

Among the positive measures were austerity efforts, the abolition of duty-free vehicle entitlements and the introduction of an AI-based traffic management system.

The launch of e-Return, withdrawal of the budgetary provision allowing undisclosed money to be legalised, expansion of bonded warehouse facilities and a waiver of agricultural loans of up to Tk 10,000 also offered some relief.

However, the government has taken no concrete steps to assess public debt stress. Meanwhile, 95 factories permanently shut down across three major industrial belts -- Gazipur, Savar-Ashulia and Narayanganj-Narsingdi – during the January-August period this year, resulting in 61,881 direct job losses.

According to CPD, the abrupt cancellation of the tenure of the previous central bank governor, reportedly without prior notice, and his replacement, amid potential conflict-of-interest concerns, have also raised questions about central bank independence and the basis for senior institutional appointments.

In the energy sector, the government decision to withdraw a proposed electricity tariff increase for low-income and low-use residential consumers was positive. The decision to invite international bids for offshore oil and gas exploration was also encouraging, said CPD.

But the prolonged gas crisis has exposed weaknesses in crisis management and supply planning, it noted. Technical disruptions at Moheshkhali LNG terminals, difficulties in securing replacement LNG cargoes and problems accepting cargoes have prolonged supply shortages.

According to CPD, the shortages are disrupting gas-dependent industries, including textiles, steel, paper, particleboard and ceramics.

On the fiscal front, the think tank said the government should prepare for a revenue shortfall of about Tk 1.30-Tk 1.40 lakh crore in fiscal year 2026-27, as the target is unrealistically high.

CPD said the government is unlikely to exceed the programmed budget deficit limit of 3.6 percent of GDP. The question, therefore, is how public spending can be recalibrated. Historically, no more than Tk 40,000 crore could be cut from non-ADP spending, which accounts for about two-thirds of the total budget allocation.

It said two other areas could put pressure on spending -- a decision on implementing a new pay scale and growing demands for subsidies.

To support economic stabilisation, CPD Distinguished Fellow Debapriya recommended a core budget for October 2026 to June 2027 based on real-time data and a credible fiscal framework.

This would provide a shorter outlook for FY2026 and a near-term outlook for FY2027, he said.

According to him, the core budget targets should be aligned with the Five-Year Strategic Framework for Reform and Development for July 2026 to June 2031.

Debapriya called for an integrated reform package focused on capacity and efficiency in energy security, banking, the proposed bifurcation of the National Board of Revenue (NBR), public spending, rationalisation of the annual development programme, logistics, digitalisation and the wage commission.

“Deliver a credible energy-security package instead of repeated emergency, no-tender imports. Review power purchase agreements to cut the subsidy burden; intensify offshore gas exploration,” he said.

The economist also urged the finance minister to fulfil his responsibility by placing the relevant reform action plan and key economic issues before parliament for scrutiny.

These include the pay scale, banking-sector restructuring, power-sector reform and broader institutional reforms, he added.

Prof Mustafizur Rahman, distinguished fellow of CPD, and Towfiqul Islam Khan, additional director for research at the think tank, were also present.

President Donald Trump sought to boost pressure on Canada on Monday, warning that US tariffs on all cars, ‌trucks and automotive parts from the US northern neighbor would be increased to 50% starting January 1 after trade talks collapsed over the weekend.

The trade deal on the table would have cut the top-line tariff rate on Canadian cars and light-duty trucks from 25% to 15% and the tariffs on aluminum and steel from ​50% to 25% but the deal collapsed on Friday over a number of points of contention including whether the US ​tariff relief would have applied to medium or heavy-duty trucks.

"Build in the US and there are ZERO TARIFFS. Canada ⁠will be treated like a State no longer!" Trump wrote.

"On Trade, and in other ways, also, they are among the worst Nations ​in the World to deal with. They feel entitled, and yet, WE DON'T NEED CANADA, THEY NEED US!" Trump said.

Canada has consistently ​been one of the top two US trading partners and last year, US goods and services trade with Canada totaled $872.3 billion, down 4.6%.

Canada exported over three-quarters of its goods to the US and imported almost half of its goods from the US

US auto production is heavily integrated with Canada and Mexico and ​the tariffs — depending on the specifics — could have drastic impacts on American production.

Flavio Volpe, the president of Canada's Automotive Parts Manufacturers' Association, ​said, "A threatened US tariff on Canadian auto parts will be paid by (the) US auto assembly. Without those specific parts, auto assembly throughout the US would ‌halt."

The White ⁠House did not immediately respond to a request for comment seeking more details on the threatened tariffs. Representatives for the Canadian government also did not immediately respond to a request for comment.

Canada will impose tariffs on some US goods starting September 8 in retaliation for 50% levies ordered by Trump on $20 billion in Canadian products.

"You're at war when you get attacked. We got attacked," Canadian Prime Minister Mark ​Carney said on Saturday when asked ​whether Canada was engaged in ⁠a trade war.

Many automakers have announced or are considering plans to scale back Canadian auto production and the trade standoff has led to a 22% reduction in Canadian imports of US vehicles.

Major ​automakers did not immediately comment on Trump's announcement.

But auto executives, speaking to Reuters on the condition ​of anonymity, raised skepticism ⁠about Trump's threat, noting that the president has previously announced large tariffs that never materialized and that any tariff of that size would likely spark a massive Canadian retaliation.

They also noted that January was months after November's midterm elections and that Trump's threat could be aimed at ⁠restarting talks.

​In January, Trump said the US would decertify Bombardier Global Express business jets and ​threatened 50% import tariffs on all aircraft made in Canada until the country's regulator certified a number of planes produced by US rival Gulfstream.

Neither occurred but the following ​month Canada certified several Gulfstream planes.

Bangladesh has agreed to pay over $24 per million British thermal units (MMBtu) for two LNG cargoes to be delivered in September, as the country continues to scramble for supplies amid a global market squeeze triggered by the US-Israel war on Iran.

The Cabinet Committee on Government Purchase today approved one cargo from Posco International Corporation at $24.625 per MMBtu for delivery on September 13-14 and another from TotalEnergies Gas & Power Ltd, UK, at $24.25 per MMBtu for September 23-24.

Govt goes for long-term US LNG supply

The prices are more than double the $10-$12/MMBtu that Bangladesh typically paid for spot LNG before the war began in late February this year.

The latest purchases also mark another jump from the prices paid for several recent cargoes.

The government approved a cargo from Aramco Trading Singapore at $21.55/MMBtu earlier this month, while two cargoes approved last week from BP Singapore were priced at $21.878 and $21.778/MMBtu.

Another cargo approved on August 19 from Aramco Trading was priced at $23.93/MMBtu.

The rising prices are adding to the pressure on Bangladesh's LNG import bill at a time when the country is increasingly dependent on spot purchases to compensate for disruptions to its long-term supplies.

Each LNG cargo contains around 33.6 lakh MMBtu of gas, meaning the two latest shipments will each cost roughly Tk 1,000 crore at the approved prices. At the pre-war spot-market rate of $10-$12/MMBtu, a similar cargo would have cost around Tk 410-490 crore.

Govt to go for direct purchase of eight LNG cargoes
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Govt to go for direct purchase of eight LNG cargoes

Bangladesh had bought 35 spot LNG cargoes since March, according to Kpler data, as Qatar, its largest long-term supplier, cut scheduled deliveries following the outbreak of the war.

But securing cargoes has itself become increasingly difficult.

Bangladesh needs roughly 10 LNG cargoes a month to maintain its imported gas supply. Yet the government struggled to secure cargoes for the final week of August even after repeatedly floating tenders.

The latest procurement difficulties emerged after the July 21 fire and subsequent technical problems at Excelerate Energy's FSRU at Moheshkhali.

The terminal, one of the country's two LNG import facilities, went offline, cutting roughly 450 mmcfd from the national gas supply. The two FSRUs have a combined regasification capacity of about 1,100 mmcfd.

Although Excelerate resumed partial operations on August 6, the terminal suffered another disruption and ran out of LNG on August 19. It started supplying again on August 22.

But due to the shortage in LNG supply, overall national supply is far below the usual level, at 2,315 mmcfd compared with 2,650 mmcfd, resulting in a severe crisis across all sectors, including power generation and industrial production.

Before the beginning of Israel, US war on Iran, imported LNG used to cater for nearly 30 percent of gas supply of Bangladesh, according to energy ministry data.

The war and disruptions to shipping through the Strait of Hormuz have affected supplies for Bangladesh, which has a long-term LNG supply contract with Qatar.

The Gulf nation usually ships a significant share of its LNG through the Strait of Hormuz, through which roughly one-fifth of global LNG trade passes.
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In March this year, Iranian missile strikes on Ras Laffan Industrial City, home to Qatar’s largest LNG export facility, caused significant damage and affected its production, according to international media reports.

Ten ministries and divisions failed to spend a single penny on development projects in the first month of the current fiscal year, according to government data.

The agencies that made no progress include the Health Services Division, Medical Education and Family Welfare Division, Bridges Division, Ministry of Industries, Internal Resources Division, Ministry of Commerce, and Ministry of Civil Aviation and Tourism.

According to data released yesterday by the Implementation Monitoring and Evaluation Division (IMED), ministries and divisions spent only Tk 2,121 crore from the Annual Development Programme (ADP) in July, just 0.69 percent of the Tk 3.08 lakh crore allocation for fiscal year 2026-27.

The spending pace was similar in July last fiscal year, which eventually dragged overall ADP implementation down to 67.52 percent, the lowest in 50 years.

The sluggish start comes despite expectations that development spending would accelerate following the formation of the new political government earlier this year.

Prof Mohammad Lutfor Rahman, an economics professor at Jahangirnagar University, said the slow pace was unexpected given public expectations from the new government.

“What we, as economists, as well as ordinary people, had been expecting, was that after a prolonged period of political change and the stagnation we experienced during the interim government’s tenure, government spending would increase once the journey of a new democratic government began,” he said.

“There was a public expectation that government spending would rise because when such spending increases, it boosts demand for day labourers and daily wage workers.”

The latest IMED figures raise questions about whether bureaucratic hurdles are still delaying project implementation, Lutfor said.

“It raises the question: Are we still stuck in bureaucratic complications? Has the current government been unable to make the administrative machinery more dynamic? That is certainly a question.”

However, he said the slow spending could also reflect a deliberate effort to scrutinise projects before releasing funds.

“I don’t want to look at this entirely negatively. There may be a concern within the government itself. There may be instructions from within the government that this year’s expenditures should be made after greater scrutiny, that various projects should be reviewed again and then implemented gradually.”

Lutfor also pointed to the large fiscal deficit as a possible reason for the cautious approach.

“I suspect that the government itself may not have the willingness to spend the entire amount. Ultimately, if the government spends, it has to arrange the money from somewhere. That would have to come through borrowing, either domestic or foreign,” he said.

“So, perhaps the government is moving in a somewhat conservative manner.”

He said the government should accelerate spending, particularly on infrastructure. Citing the poor condition of many rural roads, he said inadequate maintenance increases vehicle damage and depreciation costs.

“Proper maintenance and development of infrastructure can generate broader economic benefits, while at the same time creating employment opportunities for people who work on a daily-wage basis,” Lutfor said.

He urged the government to speed up implementation and strengthen oversight.

“In particular, the government could form a high-level monitoring committee to examine which ministries are lagging behind and why they are lagging behind,” he suggested.

“This needs to be investigated. Because, for any country, the health and education sectors are among the most important sectors.”

A senior IMED official, speaking on condition of anonymity, said fund disbursement is usually slow in the first month of the fiscal year. This, and some other factors, result in sluggish ADP spending.

The official added that IMED would soon notify ministries and divisions that have either spent little or have yet to begin ADP implementation.

Commercial banks need to adopt a more tailored approach to financing start-ups while maintaining prudent banking practices, Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management (BIBM), said yesterday.

He made the comment at a seminar titled “Start-up Financing in Bangladesh: Can Commercial Banks Play a Significant Role?”, organised by BIBM in Mirpur, Dhaka.

The seminar discussed the challenges and opportunities in start-up financing and ways to enhance the role of commercial banks in supporting the emerging start-up ecosystem, according to a press release.

Ezazul said start-ups often require a different financing approach, as their value may not be adequately reflected in conventional collateral or current cash flows. Their potential may instead depend on ideas, technology, data, human capital, intellectual property and future growth prospects.

He stressed that this should not mean compromising prudent banking practices. Banks need to strengthen their capacity to assess start-ups through better financial and transaction data, specialised appraisal expertise, relationship-based banking and a clearer understanding of different stages of the start-up life cycle.

Appropriate risk-sharing mechanisms could enable commercial banks to play a greater role in start-up financing. Credit guarantees, refinancing facilities, co-financing arrangements and stronger links among banks, incubators, investors and public-sector programmes could help promising start-ups bridge the gap between innovation and bankability, he said.

He also emphasised that building a sustainable start-up financing ecosystem would require coordinated efforts by commercial banks, Bangladesh Bank, government agencies, investors and entrepreneurs.

No single stakeholder can address the financing gap alone, he said.

The ultimate objective should be to establish a financing pathway through which promising start-ups can gradually move from idea-stage support and risk capital to sustainable commercial financing as their business models mature, Ezazul added.

Md Habibur Rahman, chairman of the BIBM Executive Committee and deputy governor of Bangladesh Bank, stressed the importance of developing appropriate financing facilities for start-up projects and creating a supportive financial environment for innovative and emerging enterprises.

A BIBM research team comprising Md Mosharref Hossain, Shamsun Nahar Momotaz and Tahmina Rahman, associate professors; Benazir Ishaque, lecturer; and Md Mohsinur Rahman, executive vice-president and head of SME banking at Prime Bank PLC, jointly presented a keynote paper.

The presentation was followed by an open discussion. Mohammad Tazul Islam, professor and director of training at BIBM; Syed Abdul Momen, additional managing director and head of SME banking at BRAC Bank PLC; Nawshad Mustafa, director of SME and special programmes department at Bangladesh Bank; Md Monjur Mohammad Shahriar, project director of the digital entrepreneur and innovation eco-system development project at the ICT Division; and AKM Fahim Mashroor, chief executive officer and co-founder of bdjobs.com Ltd, took part in the discussion.

Prof Md Shihab Uddin Khan, director of research, development and consultancy at BIBM, also spoke.

The Bangladesh Securities and Exchange Commission (BSEC) has decided to conduct surprise inspections of brokerage firms to detect irregularities early and strengthen investor protection.

Under the new mechanism, firms will be selected for spot inspections based on information about suspicious transactions, possible irregularities or activities that could put investors' money and securities at risk.

The BSEC will form an eight-member pool comprising two representatives each from the regulator, Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and Central Depository Bangladesh Limited (CDBL). Three members will be selected for each inspection – one from the BSEC, one from CDBL and one from either the DSE or CSE.

An executive director of the relevant BSEC department will coordinate the inspections, assisted by two other commission officials.

How surprise inspections will work

On the day of an inspection, officials will meet at the BSEC office in the morning and select a brokerage from a list of firms identified as potentially risky based on suspicious activities, possible irregularities and other risk indicators.

The inspection team will then be sent to the vicinity of the selected firm before the inspection notice is issued. The BSEC will subsequently send a spot inspection letter to the firm's head, after which the team will arrive at the office and begin the inspection.

The procedure is intended to minimise the time available for firms to alter records, manipulate software or conceal irregularities.

Abul Kalam, executive director and spokesperson of the BSEC, told TBS that the commission had decided to introduce spot inspections and would implement the mechanism accordingly.

"Spot inspections allow us to get a clearer picture of the actual condition of a brokerage firm. We have already inspected one firm under this approach, and the result was good," he said.

He said the DSE and CSE already conduct spot visits, but brokerage firms can often learn about them in advance, giving them an opportunity to conceal irregularities.

However, he did not disclose when the BSEC's new mechanism would formally begin.

What inspectors will examine

The inspection team will examine the brokerage firm's Consolidated Customers' Account (CCA) and check for any shortage of securities belonging to investors.

It will also scrutinise the firm's back-office software, which contains information on clients' accounts, transactions and securities holdings, to determine whether it has been manipulated, unauthorised changes have been made or information has been concealed.

Inspectors will also check whether a firm is operating multiple back-office software systems and verify its registration certificate and compliance with regulatory requirements.

The BSEC, stock exchanges and CDBL will cross-check brokerage firms' back-office records with trading and securities-holding data maintained by the exchanges and CDBL. This will help identify securities shortages, discrepancies and the use of multiple software systems.

The move comes amid allegations that six brokerage firms have embezzled a combined Tk608 crore in recent years by allegedly misusing internal systems and back-office software, according to stock exchange sources.

The alleged amounts include Tk140 crore involving Tamha Securities, Tk128 crore involving Banco Securities, Tk65 crore involving Crest Securities, Tk14 crore involving Shah Mohammad Sagir Securities, Tk161 crore involving Moshiur Securities and Tk100 crore involving Salta Capital.

Market stakeholders said surprise inspections could help detect irregularities early and strengthen investor protection. However, they said the initiative's effectiveness would depend on regular monitoring, proper analysis of inspection findings and prompt action against violations.

The National Board of Revenue (NBR) plans to introduce a data-driven system to identify discrepancies between taxpayers' declared income and their actual spending and assets, with the aim of detecting tax evasion and boosting revenue collection.

The system will have an integrated profile for every taxpayer. It will compare declared income with spending on credit cards, education, healthcare, foreign travel, bank transactions, vehicle purchase, investments in shares, and other movable and immovable assets.

The system will automatically assess whether a taxpayer's income, expenditure and assets are consistent. Significant discrepancies will trigger a higher-risk classification.

The NBR plans to complete integrated taxpayer profiles and establish an income tax data warehouse within two to three years. It will also profile high-net-worth individuals to assess whether their tax payments are commensurate with their economic capacity.
NBR officials yesterday presented separate plans of its income tax, VAT and customs wings to increase revenue at a meeting of the Parliamentary Standing Committee on the Ministry of Finance. The plans were outlined in the meeting documents.

The NBR wings presented plans covering six timeframes from the next three months to five years.

The NBR collected Tk4,15,476 crore in revenue in the last fiscal year. The BNP government has set a revenue collection target of Tk6,04,000 crore for the current fiscal year.

The plans aim to raise Bangladesh's tax-to-GDP ratio from 6.8% by two percentage points in the short term, to 10% of GDP in the medium term and 15% by 2035.

Customs attaché post at missions abroad to curb laundering

To tackle the risks of commercial fraud, revenue leakage and money laundering through trade mis-invoicing, the NBR has also proposed creating customs attaché posts at Bangladesh missions in major trading partner countries.

The proposed attachés would help collect information on the origin of imported goods, exporter details, commercial transactions and relevant foreign companies, as domestic data alone is insufficient to detect such risks.

What will be in the taxpayer profiles

The automated income and asset profiles will include taxpayers' declared income and tax payments, bank transactions, immovable property, company ownership, stock market investments, import and export volumes, withholding tax, foreign travel, bank accounts and high-value transactions, property and flat purchases and sales, vehicle ownership, high-value utility connections, rental income, and spending on education and healthcare.

For example, the NBR said a taxpayer may declare an annual income of Tk12 lakh while having Tk1.2 crore in bank deposits, purchasing a vehicle worth Tk50 lakh and land worth Tk1 crore, and travelling abroad five times a year.

Such discrepancies will be automatically flagged by the National Income Tax Data Matching System, enabling data-driven enforcement.

Curbing corporate income tax evasion

To curb corporate income tax evasion, the NBR has also proposed a system-based risk management mechanism to scrutinise specific financial indicators.

These include turnover versus declared profit, gross profit ratio, related-party transactions, interest expenses, management fees, royalties, commissions, depreciation, bad debts, related-party loans, directors' remuneration, import value versus domestic sales, and VAT turnover versus income tax turnover.

The NBR told the standing committee that it is currently developing industry benchmarks for companies in the same sector to help identify potential corporate income tax evasion.

Active taxpayer registry in major cities

The NBR also plans to launch property-based income tax compliance programmes in major cities to increase revenue from houses, flats and commercial properties.

It wants to cleanse its TIN database and create an active taxpayer registry. Those who regularly file returns and pay taxes will be classified as active taxpayers, while those who file returns but do not pay taxes will be placed in a separate category.

The NBR will also maintain separate lists of TIN holders who do not file returns, those who have not filed returns for an extended period, and individuals engaged in economic activities but without TINs.

An annual target will be set for growth in the number of active taxpayers, with the number of new active taxpayers created by each tax office included as a key performance indicator.

The NBR also plans to establish an income tax debt management system to improve the collection of outstanding taxes.

To reduce unnecessary direct contact between taxpayers and tax officials, the NBR will gradually introduce faceless assessments and audits. Tax officials will conduct assessments through a digital platform.

Integrated taxpayer accounts in 3 years

Within the next three months, the NBR will clean and classify its TIN database, prepare a list of taxpayers with the highest outstanding income tax liabilities, and identify high-risk companies, and high-net-worth individuals.

Within three to six months, it will conduct awareness campaigns to encourage taxpayers to file returns, make its High-Net-Worth Individual Unit operational, and pilot a central risk-based audit system.

Within six to 12 months, the NBR will integrate taxpayers' bank, property, vehicle and company information and pilot an automated income and asset profiling system. It will also develop electronic audit selection and an automated withholding tax ledger.

Within one to two years, the NBR plans to introduce pre-filled tax returns, nationwide risk-based audits, faceless assessments and automated refunds. It will also strengthen medium-taxpayer segmentation and build capacity in international taxation pricing.

Within two to three years, the NBR plans to establish integrated taxpayer accounts, full third-party data matching, an income tax data warehouse, automated detection of income-asset mismatches, tax gap estimation and advanced analytics-based enforcement.

Speed up auctions to ease port congestion

Customs plans to expedite auctions of uncleared and confiscated goods at Chattogram and other ports to ease congestion and boost revenue collection.

The NBR said more than Tk25,000 crore in outstanding dues is recoverable from government and private organisations. It also plans to expedite the disposal of pending cases against bonded facilities.

The NBR proposed further rationalising tax exemptions in the coming years. It said around Tk77,160 crore in tax exemptions were granted in FY26.

To address weak compliance, inadequate automation, mis-invoicing and money laundering, the NBR plans to introduce tax gap analysis, integrated automation and data integration, and AI- and machine learning-based risk management.

Attempts to contact NBR acting Chairman Ahsan Habib for comment went unanswered.

The meeting was chaired by committee chairman Mushfiqur Rahman and attended by Finance Minister Amir Khosru Mahmud Chowdhury, and other committee members.

Senior officials from the Finance Ministry, Financial Institutions Division, Economic Relations Division, NBR and Parliament Secretariat also attended the meeting.

The country's premier bourse, the Dhaka Stock Exchange (DSE), witnessed a massive bloodbath today (24 August) as the benchmark index crashed to a two-month low.

A pervasive bearish sentiment, fueled by a worsening nationwide gas and electricity crisis and global geopolitical tensions, left nearly 90% of all traded scrips in the red.

The benchmark DSEX index plummeted by 78 points, or 1.37%, to settle the session at 5,643—its lowest point in two months. The blue-chip DS30 index followed a similar trajectory, falling 14 points to settle at 2,130.

The day's trading reflected a complete dominance of the bears. Of the 387 issues traded, a staggering 355 declined, while only 14 managed to advance and 18 remained unchanged.

Investor participation also cooled significantly, with daily turnover on the DSE falling 15% to Tk601 crore, the lowest in four months, as cautious investors stayed on the sidelines.

The sustained sell-off also eroded the market's overall valuation, with market capitalisation plunging Tk4,600 crore in a single day and pushing the total market value back below the psychological threshold of Tk7 lakh crore.

Market analysts from EBL Securities noted that the capital bourse faced heavy sell-offs as investors braced for a sharp downturn in corporate earnings. Prolonged shortages of industrial gas and electricity are expected to weigh on manufacturing firms' bottom lines, particularly as June-closing companies prepare to announce their annual earnings and dividends.

Sheltech Brokerage Limited observed that the market performance was primarily shaped by persistent selling pressure that began from the opening bell.

"Although several rebound attempts emerged during the session, they lacked sufficient conviction to develop into a meaningful recovery and were repeatedly overwhelmed by renewed selling pressure," the brokerage house stated in its daily review. It further added that selling pressure intensified in the late session, dragging the index to its intraday low.

On the sectoral front, the textile sector accounted for the highest share of turnover at 24.6%, followed by pharmaceuticals (11.7%) and general insurance (11.6%).

However, returns were universally negative across all segments. The textile sector saw a 3.3% decline in its sectoral index, while services and mutual funds shed 2.6% and 2.5%, respectively.

Among the few gainers, Meghna Condensed Milk led with a 4.16% rise, followed by Acme Pesticide and Aramit Cement. On the flip side, Fu-Wang Food was the top loser, shedding 9.91% of its value, followed by ML Dyeing, Sharp Industries, and Tung Hai Knitting.

The bearish trend was mirrored at the Chittagong Stock Exchange (CSE), where the broad CASPI index plummeted by 173 points to settle at 15,255, and the CSCX fell 86 points to 9,309.

Implementation of the Annual Development Programme (ADP) stood at 0.69 percent in the first month of the fiscal year, virtually unchanged from the same period a year earlier, according to the report of the Implementation Monitoring and Evaluation Division (IMED).

Government agencies and ministries spent Tk 21.11 billion (Tk 2,111.18 crore) from the ADP allocation in July 2026, against Tk 16.85 billion (Tk 1,684.66 crore) during July 2025, the IMED report showed.

Although the implementation rate remained unchanged, the amount of expenditure increased by Tk 4.26 billion (Tk 426.52 crore) year-on-year, reflecting the larger development budget.

The government has allocated Tk 3809.15 billion (Tk 380,914.86 crore) for the ADP for fiscal year 2026-27, compared with Tk 2386.96 billion (Tk 238,696 crore) in the previous fiscal year.

The latest figures show that the pace of ADP implementation remains low at the beginning of the fiscal year.

The IMED, under the Planning Ministry, monitors development projects and prepares monthly reports on ADP progress by ministries and divisions.

Bangladesh and India discussed lifting Dhaka’s restrictions on Indian yarn imports through land ports, alongside reopening closed border haats and bringing land ports into full operation as the two neighbouring countries seek to strengthen bilateral trade.

The issues came up at a meeting between Commerce Minister Khandakar Abdul Muktadir and Indian High Commissioner to Bangladesh Dinesh Trivedi at the Secretariat in Dhaka yesterday, according to a ministry statement.Muktadir said bilateral trade currently stands at around $13 billion, but trade activities had slowed somewhat over the past one and a half years because of several obstacles.

Discussions were held on how to identify these problems and make trade relations between the two countries easier and more effective in the future, the statement said.

India is Bangladesh’s second-largest trading partner after China, and the two countries have longstanding economic ties, said the commerce minister.

He said the meeting focused on making land ports fully operational, reopening closed border haats and withdrawing the existing restriction on yarn imports through land ports.

The two sides also discussed forming a joint task force and developing digital infrastructure to increase cooperation between businesses, create new investment opportunities and accelerate trade.

Muktadir expressed hope that the Indian high commissioner’s initiatives would further strengthen Bangladesh-India relations and take economic cooperation to a new level.

Trivedi said that while the two countries have some political and economic differences, ordinary people want development and progress. Both countries, he added, must work together for the future of the younger generation.

“Bangladesh and India are two independent and sovereign countries. Neither is bigger or smaller; everyone is equal. The two countries must continue to work on the basis of this equality,” he said.

He said economic cooperation is the most important factor in improving bilateral relations, adding that stronger economic ties would lead to greater cooperation in other areas.

Trivedi also stressed the importance of joint investment and production, pointing to the global success of Bangladesh’s ready-made garment sector.

He said India can support the sector by supplying zippers, machinery, buttons and other inputs to increase mutual interdependence between the two countries.

The high commissioner said he feels proud to see garments bearing the “Made in Bangladesh” label in international markets.

The garment sector could expand further through joint initiatives between the two countries, he added.

The Money Changers Association of Bangladesh (MCAB) has set new exchange rates for the kerb market to help stabilise and regulate cash dollar prices.

Licensed money changers now can sell US dollars at a maximum of Tk126.50 and buy at Tk125.50, MCAB President MS Zaman announced at a press conference in Dhaka today (24 August).

Several money changer owners said the cash dollar rate had recently climbed to as high as Tk128 in the kerb market. They said remittance inflows through expatriates carrying cash into Bangladesh had declined, while demand for cash dollars had increased after India reopened medical and travel visas for Bangladeshis.

Treasury officials at several public and private banks said banks bought remittances from expatriate Bangladeshis at Tk122.30 per dollar on Sunday. Banks, meanwhile, settled letters of credit at rates of up to Tk122.95 per dollar.

Zaman said the new rates were being communicated to all money changers across the country through MCAB's website.

'Money changers not behind volatility'

On dollar market volatility, Zaman rejected allegations that money changers manipulate rates, saying the sector lacks the scale and capital to influence the market. He instead blamed banks for creating instability and profiting from it in the post-Covid period.

He said money changers only trade cash currencies and cannot directly bring in remittances. Their main source of foreign currency is cash carried by returning travellers and expatriate workers, which they bring into formal channels and thereby indirectly support reserves.

Zaman said BB regulates the interbank market and sets rates for scheduled banks, but lacks similarly clear guidelines for money changers. He called for clearer rules, greater scope for legal foreign currency trading and simpler policies to curb the illegal market.

MCAB has also shared a list of illegal and unlicensed money changers with Bangladesh Bank, law enforcement agencies and journalists, he said, adding that licensed operators were following the central bank's instructions.

Bangladesh spends only about 0.3 percent of its gross domestic product on research and development (R&D), one of the lowest rates among peer middle-income countries, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said yesterday.

Speaking at the Bangladesh Industry Research, Development and Innovation (BIRDI) Grants Awarding Ceremony in Dhaka, he highlighted countries such as South Korea, China, India and Vietnam, which invest significantly more in R&D, to underscore the gap Bangladesh needs to close.

The event, organised by the Skills for Industry Competitiveness and Innovation Program (SICIP) under the finance ministry at the InterContinental Dhaka, was attended by representatives from industry, academia and development partners.

Citing Bangladesh Bureau of Statistics data at the event, the minister said the picture is worse at the industrial level, with manufacturing enterprises spending, on average, less than Tk 500 per worker annually on research and innovation.

As a result, Bangladesh continues to struggle to compete for global market share, foreign direct investment and high-value employment, he said.

The minister said the country must shift decisively towards a research-driven, innovation-based economy, with greater investment in R&D, stronger industry-academia collaboration and a clear focus on practical solutions.

High-return research cannot flourish in isolation, and needs coordinated action among industry, academia and government, he added.

Universities have often produced theoretical research with limited commercial use, he said, while industrial enterprises have faced inefficiencies without sufficiently using domestic scientific talent.

Competing purely on low wages is no longer viable, Khosru added, urging Bangladesh to build a more sophisticated, innovation-driven production base.

Qingfeng Zhang, country director of the ADB Bangladesh Resident Mission, said the country’s next phase of growth depends on developing homegrown innovators and moving up the value chain through productivity, technology and quality jobs.

While technologies can be imported, local capability to identify problems, adapt tech, and bring solutions to market must be built within Bangladesh, he noted.

Zhang said the BIRDI grants align with ADB’s $300 million financing for SICIP, bridging industry, academia and finance to tackle real business challenges beyond traditional skills training.

During the event, twelve research projects spanning pharmaceuticals, textiles, agriculture, electric mobility, electronics and energy received grants totalling more than Tk 21 crore in the programme’s first round.

Each project pairs an industry partner with a research team to tackle challenges such as AI-driven fabric inspection, water-saving smart dyeing, vaccine-grade enzymes and solar-powered cold storage.

The Trump administration on Sunday warned that Canada would be “foolish” to think it could win a trade war with the United States, predicting a “devastating” impact on its northern neighbor.

Negotiations between Washington and Ottawa broke down late Friday, putting into force new 50-percent US tariffs impacting about $20 billion worth of Canadian goods, or 5.5 percent of Canadian exports to the United States.
Canada in retaliation said it would match US tariffs, with new levies notably targeting the US steel and dairy industries to take effect on September 8.

US Transportation Secretary Sean Duffy said Canada would come out worse from tussling with President Donald Trump in a trade war.

“We’re great trading partners, right? But Canada gets the benefit of trading with the US way more than the US gets the benefit of trading with Canada,” he told the “Fox News Sunday” talk show. “To think that they’re going to go to war with Donald Trump and actually win that war with the US, I think it’s foolish on their part.”

He predicted that Canadian Prime Minister Mark Carney would return to negotiations “very very quickly, because it’s going to be devastating for his country.”

Carney was defiant on Saturday, announcing retaliatory tariffs on the US after walking away from a “bad deal” on trade as the rift between the longtime allies deepened.

“You’re at war when you get attacked. We got attacked,” Carney said.

Trump hit back at Canada early Sunday, saying, “Canada wants the benefits of being a State, without being one!!!”

“They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!” Trump added in a post on Truth Social.

The government has formed a committee to devise work procedures for the transition of the fiscal year from July-June to April-March.

Headed by the cabinet secretary, the five-member committee will determine the required changes to the Constitution, the General Clauses Act, 1897 and other aspects of the government’s financial management, according to a notification issued by the Cabinet Division on Sunday.

The move comes a week after the cabinet decided to change the country’s fiscal year cycle to April 1-March 31, with the new cycle taking effect in FY2028-29. The move away from the July-June cycle is aimed at avoiding monsoon-related delays in vital infrastructure development.

To facilitate a smooth transition, the 2027-28 fiscal year will serve as a nine-month transitional year (July-March).

The move away from the July-June cycle is aimed at avoiding monsoon-related delays in vital infrastructure development
Currently, key infrastructure works continue into July and August, when heavy rains frequently cause project delays, compromise the quality of construction and lead to widespread public suffering.

Shifting the cycle to April-March will allow major infrastructure development activities to be completed before the monsoon season begins, according to the Cabinet Division. Other members of the committee include the Bangladesh Bank governor, finance secretary, legislative and parliamentary affairs secretary and the chairman of the National Board of Revenue.

The committee will begin work immediately.

Chattogram customs house is set to auction goods from 442 containers from August 27 to September 16 as part of efforts to clear long-abandoned consignments occupying valuable space at Chattogram port.

Around 2.4 lakh tonnes of imported goods worth nearly Tk 9,000 crore have been lying abandoned at the port for years, occupying about 18 percent of its total capacity, according to port and customs officials.

The abandoned consignments, imported between 2013 and 2024, include various chemicals, machinery and machinery parts, fabrics, yarn, plastic waste, tiles, salt, paper, household goods and other items.

The prolonged storage has not only blocked port space but also deprived the government of revenue and caused financial losses to shipping agents.

To address the backlog, Chattogram Customs has launched two e-auctions involving 442 containers in 210 lots
Customs officials said importers often abandon consignments when market prices fall, original documents or clearance permits are unavailable, or they refuse to pay fines imposed for import irregularities.

To address the backlog, Chattogram Customs has launched two e-auctions involving 442 containers in 210 lots. The initiative aims to ease container congestion, increase port efficiency and prevent the wastage of state resources.

Under a special e-auction, 290 containers in 101 lots will be auctioned. The consignments include chemicals, machinery, plastic waste, chest freezers, pipes, yarn, fabrics, solar modules, salt, paper, tiles and household goods, along with 86 old empty containers. No reserve price has been set for these consignments.

Another 152 containers in 109 lots will be auctioned under a separate e-auction. The consignments include capital machinery, fabrics, PVC flex banners, chemicals, air-conditioner parts, tiles, stainless steel coils, scanners, badminton rackets, elevators and salt.

The entire auction process will be conducted digitally through the customs e-auction platform to ensure transparency and accountability.

Bidders are required to upload a scanned copy of a security deposit equivalent to at least 10 percent of their proposed bid amount and submit the original documents within the stipulated time.

Port and customs officials said delays in the auction process have allowed many consignments to deteriorate, resulting in further losses and wastage of valuable foreign currency.

The authorities have taken several measures, including amendments to auction rules, to expedite the disposal of abandoned goods.

The National Board of Revenue expects the technology-driven auction process to help increase the operational capacity of Chattogram port, ease container congestion and ensure more effective management of state resources.

GBB Power Limited has entered the renewable energy sector by signing an agreement to develop a solar power plant, following a 99% surge in its share price over the past few weeks.

According to a disclosure filed with the Dhaka Stock Exchange (DSE) today (24 August), the company's subsidiary, Solaron Power Limited, has signed a 25-year Power Purchase Agreement (PPA) with Cumilla Cantonment.

Under the agreement, Solaron Power will install a 5.005 MWp ground-mounted solar power plant on a Build, Own, Operate and Transfer (BOOT) basis.

GBB Power holds a 70% stake in Solaron Power, while the remaining 30% is owned by strategic partners.

The renewable energy project comes as GBB Power's share price has surged sharply in recent weeks, gaining nearly 99%.

The project, with an estimated investment of Tk6 crore, is expected to begin commercial operations in the first half of 2027.

The announcement comes after a period of extraordinary volatility for the company's stock. DSE data shows the scrip was trading at Tk8.2 on 28 July 28, before skyrocketing 99% to reach Tk16.3 by 18 August. The share price closed at Tk14.20 today.

The move into solar is significant for GBB Power as its two existing power plants are currently non-operational following the expiry of their previous government contracts.