Open-handed tax incentives and other business-boosting budgetary measures have yet to fully satisfy multinational companies (MNCs) operating in Bangladesh in an uninspiring signal for fresh foreign investment in the country.

Investment decisions are often influenced by the experiences of existing investors, particularly their ability to navigate tax regulations, comply with fiscal requirements and operate in a predictable business environment.

Several key initiatives and reforms to attract foreign direct investment are on in Bangladesh though central-bank data show net inflows faced a 28-percent year-on-year drop during the first half of current calendar year.

To assess the tax-related challenges facing foreign investors, The Financial Express spoke to leaders of foreign investors' chambers, including the Foreign Investors' Chamber of Commerce and Industry (FICCI), the American Chamber of Commerce in Bangladesh (AmCham), the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI), and the Thai Trade Centre, as well as representatives of Unilever, Coca-Cola, LafargeHolcim, Grameenphone and a former Nestlé Bangladesh executive.

The discussions revealed that, despite some welcome reforms in the latest national budget, including scrapping the minimum tax provision, multinational companies continue to face complex compliance requirements, inconsistent tax administration, delayed refunds and a disproportionate tax burden.

These challenges, they said, increase the cost of doing business and undermine investment predictability.

Tax policy and administration remain important considerations in foreign investors' decisions, particularly when companies assess the long-term viability of investments in a market.

Talking to the FE, FICCI President Rupali Chowdhury said multinational companies in Bangladesh faced several interconnected tax-related challenges, including a disproportionate revenue burden.

"A relatively small number of companies bear a significant share of the country's revenue target," said Ms Chowdhury, the long-serving Managing Director of Berger Paint Bangladesh, who is now serving as director.

As MNCs are generally more tax-compliant than many local competitors, they often operate in an uneven competitive environment, she added.

"Compliant companies are frequently subjected to multiple audits, which appear to focus on extracting additional revenue rather than broadening the tax base."

Revenue and gross profit are sometimes estimated without adequate consideration of actual business conditions or performance, she alleged.

The Finance Act 2026, however, addressed a longstanding business concern by withdrawing the minimum tax requirement, Ms Chowdhury mentioned.

A roadmap outlining tax rates for the next four years also provides greater certainty and supports investment planning.

The increase in the turnover tax rate to 1.0 per cent, however, is burdensome and could hinder business growth, she said, recommending that the rate be reduced in the next budget.

Over the next three quarters, tax policy and administration should focus on broadening the tax base, improving compliance and supporting productive businesses, she added.

Iqbal Chowdhury, vice-president of FICCI and treasurer of EuroCham Bangladesh, said many budgetary changes remained largely theoretical, as field-level tax offices were not fully aware of how to implement them.

The tax authority continued to pursue a "quick-win" approach to generating revenue from compliant taxpayers rather than expanding the tax base, he said.

A former Nestlé Bangladesh Director of legal and regulatory affairs, Debabrata Roy Chowdhury, says the initiative to collect taxes from retail businesses was intended to bring untapped sectors into the tax net.

"However, the burden was falling on companies because the National Board of Revenue (NBR) lacked the distribution capacity needed to collect taxes effectively from retailers," said Mr Roy, who is Managing Partner and Founder of ETHOS 4Si8 advisory.

Recent changes to VAT measures, including the reintroduction of monthly VAT returns, also left corporates confused about the government's intentions, he said.

He has suggested that the NBR conduct proper studies before introducing fiscal measures to ensure they were practical and implementable.

Zinnia Tanzina Huq, chief financial officer and finance director of Unilever Bangladesh, has said the NBR needed to ensure the smooth implementation of tax-collection measures targeting retailers.

She also identified challenges relating to customs valuation, restrictions on deducting legitimate business expenses and VAT-rebate limitations.

Uncertainty over the acceptance of transaction value at the import stage could trigger disputes and make landed costs less predictable, she said. Restrictions on obtaining DTA benefits for dividends and royalties also created administrative difficulties.

Shadab Ahmed Khan, Managing Director of Coca-Cola Bangladesh, pointed to high tax incidence in certain sectors, limited access to double- taxation-avoidance benefits and the need for a predictable tax regime for multinational companies.

Kazuiki Kataoka, country representative of the Japan External Trade Organisation (JETRO) and newly elected president of JBCCI, said the main tax-related challenges facing foreign investors were not limited to tax rates. "Companies are often more concerned about complexity, predictability and consistency in tax administration."

Key concerns included inconsistent interpretation and application of tax rules, frequent regulatory changes, and the administrative burden associated with withholding tax, VAT, customs procedures and documentation requirements.

Transfer pricing, cross-border service payments, and the remittance of royalties and technical fees could create additional complexities for multinational companies, he added.

In a written response to FE queries, the Thai Trade Centre said limited understanding of international accounting standards and global enterprise resource planning (ERP) systems sometimes resulted in tax assessments that did not reflect actual taxable transactions.

Multinational companies maintained high compliance standards at significant administrative costs, it said. "Inconsistent tax enforcement also created an uneven playing field, allowing less-compliant businesses to gain cost and pricing advantages."

Former AmCham president Syed Ershad Ahmed, country manager and MD of Expeditors Bangladesh, has identified complex tax-compliance requirements, multiple layers of taxation, withholding-tax obligations, delayed VAT refunds and inconsistent interpretation of tax regulations as major bottlenecks.

Tanveer Mohammad, Chief Corporate Affairs Officer of Grameenphone, the highest corporate taxpayer every year, has said the narrow tax base placed excessive pressure on compliant taxpayers as the government sought to meet its revenue targets.

"High and sector-specific tax rates also affected competitiveness and long-term investment attractiveness."

However, the GP CCO recommends a phased tax-reduction roadmap for sector-specific rates.

Accounting professional Snehasish Barua, managing partner of Snehasish Mahmud & Co, says foreign investors value predictable, rules-based tax systems.

"Our main challenge today is not just the statutory corporate tax rate, but structural bottlenecks like non-creditable advance taxes, arbitrary deduction caps, and administrative delays that trap working capital."

The government has introduced several constructive reforms in the latest fiscal framework, but their success would depend on whether operational circulars and field offices delivered the intended benefits without bureaucratic friction, he adds.

"For the remainder of this fiscal year, our focus should shift from introducing new laws to perfecting implementation: automated refunds, transparent VAT reconciliation, and a fully integrated National Single Window," he said.

Nahian Rahman, head of the Investment Development Division at Invest Bangladesh (former BIDA), says the authority remains closely engaged with foreign investors and are ready to support them in addressing any operational or policy issues they face in Bangladesh.

Despite these concerns, multinational companies acknowledge that the FY2026-27 budget has introduced several constructive measures to rationalise the tax framework and support the digital economy.

MNCs urged the government to widen the tax net rather than burden compliant businesses to meet ambitious revenue targets.

They called for rationalising sector-specific taxes, digitising tax administration and maintaining regular dialogue with businesses to simplify compliance and create a more predictable, investment-friendly tax regime.

They have described the latest budget as a positive start but said further reforms were needed.

When world leaders congregate in Antalya, Türkiye, for COP31 in November, Bangladesh, like every other edition, will arrive with one of the strongest moral cases for climate justice, but in a world driven by grossly unequal power dynamics, moral authority alone does not win negotiations.

Bangladesh's participation in the UN climate process dates to the inception years of COP. Over more than three decades, it has earned international recognition for disaster preparedness, community-based adaptation and leadership among climate-vulnerable countries. Yet a difficult question remains: has Bangladesh converted its vulnerability, experience and diplomatic visibility into sufficient negotiating power?

COP31 will be the first major climate summit attended by Bangladesh's newly elected government after July. It should therefore be treated not as another international event, but as the beginning of a 10-year climate diplomacy and investment strategy.

Turning climate vulnerability into negotiating power

Bangladesh has compelling evidence of climate-induced loss and damage. Cyclones, floods, river erosion, salinity intrusion, waterlogging and extreme heat are already damaging homes, infrastructure, agriculture, health and livelihoods. In 2024 alone, heat-related illness and productivity losses reportedly cost the country as much as $1.78 billion and resulted in the loss of 25 million working days.

These impacts are no longer exceptional disasters. They are becoming recurring development costs.

Bangladesh must arrive at COP31 with a quantified national loss-and-damage position. That requires a credible system for recording economic and non-economic losses across districts and sectors including displacement, lost livelihoods, public-health impacts, ecosystem damage and the disproportionate burdens borne by women, children and marginalised communities.

Without such evidence, Bangladesh will continue describing its vulnerability while other countries negotiate with detailed assessments, financing models and investable proposals.

The Fund for Responding to Loss and Damage is now operational, although its resources remain far below global needs. Bangladesh should advocate for predictable, grant-based access; direct access for vulnerable countries; simplified procedures; and recognition of slow-onset processes such as salinity, sea-level rise and river erosion. It must also prepare a national pipeline before funding windows open. Winning a global fund but lacking projects ready for submission would be a hollow victory.

Climate finance: Access is not the same as adequacy

It would be incorrect to claim that Bangladesh has failed entirely to access multilateral climate finance. The Green Climate Fund records approximately $464 million in financing associated with Bangladesh, while the country has also received support through the Global Environment Facility, Adaptation Fund and other channels.

The country's COP31 delegation should carry a disciplined set of priorities: capitalising the Loss and Damage Fund; securing grant-based adaptation finance; simplifying direct access to multilateral funds; protecting integrity in carbon markets; financing the National Adaptation Plan; and developing the next generation of negotiators.

However, this remains modest compared with the scale of need. Bangladesh's emerging National Climate Finance Strategy process estimates annual climate-finance requirements exceeding $26 billion. Its National Adaptation Plan extends to 2050 and requires investments on an altogether larger scale.

The real problem is therefore not complete exclusion, but the gap between vulnerability, financing needs and the country's capacity to originate, secure and implement funding at scale.

Bangladesh's difficulties include fragmented institutional responsibilities, lengthy project-development processes, limited feasibility studies, weak coordination between ministries, shortages of specialised climate-finance professionals and inadequate pipelines of bankable projects. Access frequently depends on international accredited entities, which can weaken national ownership and add layers of procedure.

The new government should strengthen direct-access institutions, establish a permanent climate project-preparation facility and build multidisciplinary teams combining climate science, economics, engineering, social safeguards, gender expertise and financial modelling.

The recently established National Committee on Climate Finance, chaired by the prime minister, could provide high-level direction, but only if it produces transparent decisions, measurable targets and clear accountability rather than another layer of bureaucracy.

Carbon trading must not become the next fashionable promise

The government's interest in carbon markets is understandable. Its election manifesto proposed a Measurement, Reporting and Verification system and a domestic carbon-trading framework covering sectors such as energy, agriculture, waste and forestry. Bangladesh has also prepared a draft carbon-market framework and designated an authority for implementing Article 6 of the Paris Agreement.

These are encouraging beginnings, but carbon credits are not free money.

A credible market requires reliable emissions baselines, sectoral data, accredited verification, a functioning registry, transparent benefit-sharing and safeguards against double counting. Bangladesh must also decide which emission reductions it can transfer without undermining its own nationally determined contribution.

Poorly regulated trading could allow inexpensive emission reductions to be sold abroad while communities receive little benefit, and Bangladesh retains more costly mitigation obligations. Carbon markets should therefore complement, not replace public climate finance, grants and domestic mitigation. Environmental integrity and community rights must come before optimistic revenue projections.

Learn from the implementation failures of the past

Previous governments did not leave Bangladesh without climate policies. The country developed the Bangladesh Climate Change Strategy and Action Plan, established the Bangladesh Climate Change Trust Fund, prepared the Delta Plan 2100, adopted a National Adaptation Plan and promoted the country's first Climate Prosperity Plan. Bangladesh also gained recognition through the Climate Vulnerable Forum.

The central weakness was not an absence of plans. It was the gap between plans, budgets, institutions and implementation.

Climate responsibilities remained dispersed across ministries. Projects were too often short-term and donor driven. Monitoring focused more on expenditure and activities than long-term resilience. Local governments and affected communities had insufficient influence over investment decisions. Meanwhile, continued dependence on fossil-fuel infrastructure weakened the coherence of Bangladesh's international climate message.

The new government should not repeat the practice of announcing another strategy whenever implementation falters. It should consolidate existing plans, publish annual progress against measurable indicators and connect climate priorities to national budgeting, energy planning and local development.

Manifesto commitments, including increasing renewable energy, expanding afforestation, reducing plastic waste and developing carbon markets must now be translated into financed programmes with deadlines and responsible institutions.

Bangladesh needs negotiators, not merely delegates

Climate diplomacy is increasingly technical. Negotiations now cover adaptation metrics, climate-finance accounting, Article 6 rules, transparency frameworks, technology transfer, just transition and the governance of loss-and-damage finance. No country can influence these discussions through speeches alone.

Bangladesh has a respected group of experienced climate negotiators, but many are approaching the later stages of their careers. The country has not built a sufficiently institutionalised succession system. Officials are transferred, younger delegates may attend without defined negotiating responsibilities, and knowledge acquired at one COP is not always retained.

Youth participation also requires honest reflection. Bangladesh has many visible climate advocates, but visibility, social-media campaigning and attendance at side events are not substitutes for technical expertise. Advocacy is valuable, but across the negotiating table sit lawyers, economists, scientists and career diplomats who have followed the same agenda for years.

Bangladesh should establish a national climate-negotiation academy or fellowship that trains young professionals continuously, not only before COPs. Participants should specialise in specific negotiating tracks, work under senior mentors, contribute to technical submissions and remain engaged between conferences. Youth representation must progress from symbolic inclusion to informed participation.

Diplomacy can multiply Bangladesh's influence

Bangladesh is not a permanent member of the Security Council, but climate negotiations do not formally operate through veto powers. Decisions are generally reached by consensus. Nevertheless, richer states possess greater influence through larger delegations, technical capacity, finance and geopolitical alliances.

Bangladesh cannot compete through delegation size alone. It must negotiate through coalitions, particularly the Least Developed Countries Group, Climate Vulnerable Forum, Group of 77 and China, and regional partnerships. Its scheduled graduation from the LDC category also makes it urgent to develop a diplomatic identity that does not depend exclusively on LDC status.

COP31's Türkiye–Australia partnership creates an additional opening. Bangladesh should engage both the host presidency and the Australian-led negotiation process well before Antalya, building alliances around adaptation finance, loss and damage, locally led adaptation and simplified access for vulnerable countries.

Bangladesh's population, adaptation experience and strategic position in the Bengal Delta mean it is not diplomatically insignificant. But influence must be organised.

The country's COP31 delegation should carry a disciplined set of priorities: capitalising the Loss and Damage Fund; securing grant-based adaptation finance; simplifying direct access to multilateral funds; protecting integrity in carbon markets; financing the National Adaptation Plan; and developing the next generation of negotiators.

After three decades of climate diplomacy, Bangladesh no longer needs to prove its vulnerability. Its next challenge is to prove that it can turn vulnerability into evidence, evidence into alliances, and alliances into finance and action.

Last week's meetings of the International Monetary Fund and World Bank yielded no new answers for the developing world to the questions posed by a spreading West Asia war, continuing war in Ukraine, rising debt payments and a potential AI bubble.

Not for the first time, lower-income countries are being rocked by the spillover from the actions of wealthier nations: rising debt service costs, higher inflation and the risk of falling ever further behind economically thanks to the AI boom.

What they got was the stock advice the global lenders always dish out: to shrink fiscal deficits and accelerate economic reforms to attract more private sector investment.

Kristalina Georgieva, the first IMF chief from a developing nation - Bulgaria - said advanced economies were in fact the worst offenders on budget imbalances. She noted that developing countries' debt levels had actually fallen in recent years, only for surging bond yields elsewhere to drive up their borrowing costs.

Average debt service payments there had more than doubled from a decade ago to 14 percent of government revenue, crowding out education, healthcare and other critical areas, she said.

Advanced Economies Focused on Their Own Problems

At a panel on Saturday, Georgieva said many issues remained unresolved, especially around AI:

"We are in a place where we have many more questions than we have answers. And my alert to everybody is: Do not fall for the guys that pretend they have the answers. They are tricking you."

Josh Lipsky, vice president of international economics at the Atlantic Council think tank, said the meetings had flunked their opportunity to come up with guidance or ways to help.

"It's hard to talk about the developing world when the advanced economies don't have their act together and are at risk of a fiscal crisis," he said. "And that's on top of political situations in many of these countries that makes development aid not a priority at the moment."

Mauricio Cardenas, Colombia's former finance minister and now a research scholar at Columbia University's School of International and Public Affairs in New York, said many policymakers were left with a deep sense that "something really bad could happen" but no real roadmap to navigate the future.

"The IMF and World Bank are not particularly well prepared for this new phase. They understand that something is going on, they bring in experts on AI," he said. "But in the end, there's no kind of specific, concrete advice on how to be prepared for something where you don't really understand how it's going to unfold."

The geopolitical tensions that have roiled both institutions since Russia's invasion of Ukraine in 2022 - complicating concerted action - were also evident in Bangkok when nearly half the delegates at an IMF steering committee walked out when Russia's finance minister spoke.

Houthi attacks on Riyadh airport delayed the arrival of the head of that committee, Saudi Finance Minister Mohammed Al-Jadaan, who had to travel overland to Qatar to catch a flight.

And Bangkok itself was a stark reminder of the challenges facing developing countries, still partly under water after floods in September that caused almost $200 million in damage to Thailand's industrial sector.

Rising Inequality Could Raise Costs in Long Term

Kate Pickett, a professor at the University of York, urged policymakers to focus on more inclusive growth rather than forcing developing countries into tough structural reforms.

"If inequality increases, if poverty deepens, that will increase their costs in the long term," she said. "It's not enough to describe an economy as resilient. It's only resilient for the rich and the privileged.”

Ayhan Kose, deputy chief economist at the World Bank, said the global economy had weathered its biggest energy shock - from the US-Israeli war on Iran - better than expected.

But while a global recession had been avoided, he said growth outlooks in both developing and advanced economies were worse than before.

Growth had already fallen off in half of advanced economies, while in developing countries as a whole, it had slowed significantly to around 3.6 percent from 4.4 percent.

“People are really worried because resilience today is not a guarantee for resilience tomorrow," he said. "Now they are worried about what will be the next shock, because every six months, if not every three months, there is a new shock."

While no specific initiatives were announced, he said the World Bank remained focused on helping developing countries prepare for advancements in AI, in part by mobilising more private capital, now at triple the levels of 2022.

Yet it, too, has to contend with sharp drops in official development aid and persistent challenges in attracting foreign investment to developing countries.

“The reality on the ground is the reality on the ground,” he said.

Bangladesh Bank has warned the public against mobile apps offering unauthorised online loans, saying they can access users' contacts, personal information, photos, videos and text messages and use the data to extort money, blackmail borrowers and threaten to publish sensitive images on social media.

The central bank has also warned against transactions through 22 unlicensed online payment aggregator platforms identified by its Payment Systems Supervision Department.

In a warning notice issued today (18 October), Bangladesh Bank said operators of unauthorised loan apps were using customers' personal information to threaten to publish sensitive photos on social media and extort money.

Lending through such apps without the central bank's approval was illegal, it said, urging the public to refrain from using them or participating in their lending activities.

According to the notice, such operations violate Section 15(2) of the Payment and Settlement Systems Act, 2024, while Section 37(1) provides for punishment for the offence.

The central bank said the operators were committing punishable offences. Borrowers who register with the apps and conduct financial transactions through them could also become involved in unlawful activities, it warned.

In a separate warning issued on the same day, Bangladesh Bank advised the public against using the 22 payment platforms, saying that providing payment services without its licence was illegal and punishable under the Payment and Settlement Systems Act, 2024.

Section 4(2) of the law bars any person, institution or company from operating a payment system or providing payment services without a licence from Bangladesh Bank. Section 37(1) stipulates penalties for violations.

The 22 platforms are BohudurPay, ZiniPay, PayTiller, BengaliPay, Payora BD, SohojPay BD, EasyPayWay, AK Pay, BD PAY, ShajgarPay, AsthaPay/CPay, UddoktaPay, Walletmix, BttPay, Easy Pay Automation, UniquePay BD, BD AUTO PAY, RH Pay BD, EzePay, AutoPay Ltd, Biswasto and PipraPay.

Bangladesh Bank urged the public to avoid operating or conducting transactions through the unlicensed platforms to protect their hard-earned money and avoid legal risks.

Singapore has expressed interest in exploring investment opportunities in Bangladesh's infrastructure, logistics and industrial sectors, with particular emphasis on terminal development and operation.

The interest was expressed at a meeting between Invest Bangladesh Authority Chairman Chowdhury Ashik Mahmud Bin Harun and Singapore High Commission Charge d'Affaires in Bangladesh Philip Ong at the authority's office today (Sunday), BSS reports.

The meeting discussed Bangladesh's investment climate, institutional coordination, infrastructure development and ways to expand bilateral economic cooperation.

During the meeting, Ong praised the initiative to establish Invest Bangladesh Authority by bringing together the Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA) and Public Private Partnership (PPP) Authority.

He said such institutional reforms could ensure more coordinated, faster and more effective services for investors.

Ashik Chowdhury said the institutional integration and coordination initiative could be expanded in the future, with opportunities to bring more institutions under the integrated framework in phases.

He said the authority aimed to ensure effective logistics support for investors, encourage investment in solar power plants, advance privatisation initiatives, accelerate digitalisation and create a conducive environment for industrial development.

The meeting also explored Singapore's potential investment in Bangladesh's infrastructure and logistics sectors.

In this connection, the participants discussed the experience and capabilities of Singapore-based global port operator PSA International and the potential for its involvement in the development and operation of terminals in Bangladesh.

Ong expressed Singapore's willingness to work with the Bangladesh government and strengthen bilateral economic cooperation.

He also underscored the importance of policy continuity, transparency and a predictable business environment to enhance investor confidence.

Both sides expressed optimism about creating new opportunities for cooperation between Bangladesh and Singapore in investment, infrastructure, logistics and industrial development.

A delegation of Japanese investors has announced plans to invest an initial US$1.2 billion in Bangladesh's tourism and hospitality sector, opening up fresh prospects for foreign investment in the country's largely untapped tourism industry.

The announcement came during a meeting with Civil Aviation and Tourism Minister M. Rashiduzzaman Millat at the ministry's conference room in the Bangladesh Secretariat this afternoon on Sunday.

The Japanese investors expressed their strong interest in Bangladesh's tourism industry and readiness to work with the government to develop tourism infrastructure and hospitality facilities, reports BSS, citing a press release.

Welcoming the investment announcement, Minister Millat assured the Japanese delegation of the government's full cooperation in facilitating their proposed investment.

“We are delighted to welcome the interest shown by Japanese investors in investing in Bangladesh. Once their investment proposals are formally submitted, the government will promptly take the necessary steps,” he said.Buy Maps

The minister said the government was keen to attract foreign investment in tourism through mutually beneficial public-private partnership (PPP) arrangements.

He stressed that the government would pursue a win-win approach to foreign investment, ensuring benefits for both investors and Bangladesh.

Highlighting the country's immense tourism potential, Millat said Bangladesh offers a unique combination of natural beauty, cultural heritage and diverse tourist attractions.

“Our country is home to the Sundarbans, the world's largest mangrove forest, Cox's Bazar, the world's longest uninterrupted natural sea beach, and the picturesque tea gardens of Sylhet,” he said.

The minister said the government was committed to developing the tourism sector by attracting international investment and improving tourism-related infrastructure and services.

Describing Japan as a longstanding and trusted development partner, Millat recalled its significant contributions to Bangladesh's major infrastructure development projects.

He expressed optimism that Japanese investment and expertise could play an important role in unlocking Bangladesh's tourism potential.

“Japan is an old friend of Bangladesh. The government is always ready to extend all necessary cooperation to Japanese investors interested in developing our tourism sector,” he said.

The minister also directed that necessary arrangements be made for the Japanese investors to visit prospective tourism destinations and assess investment opportunities.

He said a delegation from the Bangladesh Tourism Board (BTB) would promptly facilitate visits to potential tourism sites to help the investors identify suitable projects.Buy Maps

The Japanese representatives reaffirmed their interest in developing a long-term partnership with Bangladesh in tourism and hospitality.

The proposed $1.2 billion investment is expected to be taken forward through formal proposals to be submitted by the Japanese investors for government consideration.

A Memorandum of Understanding (MoU) was signed between the Government of Bangladesh and the Government of Germany on Sunday for the implementation of the project titled ‘Eco-Build: Scaling up Green Construction’.

Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD), Ministry of Finance, signed the MoU on behalf of the Bangladesh government, while Mark Gombert, country director of GIZ Bangladesh, signed it on behalf of the German side, reports UNB, citing a press release.

Under the MoU, the German Government and the European Union (EU) will provide EUR 10 million each as grant assistance, amounting to a total of EUR 20 million (approximately Tk 277.38 crore) for the project, said the release.

The project will be jointly implemented by the Ministry of Housing and Public Works and the Ministry of Environment, Forest and Climate Change.

The main objective of the project is to promote environmentally sustainable and climate-friendly construction practices across the national, local government and private-sector construction industries in Bangladesh.

The project will support the formulation and implementation of relevant policies, strengthen the engagement of public and private-sector stakeholders, and establish mechanisms to ensure quality control and standards for environment-friendly construction materials.

Germany has been a development partner of Bangladesh since 1972. To date, the total financial and technical assistance committed by the German Government amounts to approximately EUR 4 billion.

Currently, 21 projects are being implemented in Bangladesh with grant assistance of EUR 121.62 million through GIZ.

Stocks on the Dhaka Stock Exchange (DSE) continued their decline for a second straight session today (18 October) amid persistent selling pressure, cautious investor sentiment, and ongoing corporate earnings and dividend disclosures.

The benchmark DSEX index fell 10 points to 5,422, while the blue-chip DS30 index shed 4 points to 2,085.

Turnover stood at Tk365 crore amid subdued trading. Of the issues traded, 217 declined, 102 advanced and 67 remained unchanged.

EBL Securities said in its daily market review that investors largely stayed on the sidelines amid ongoing earnings and dividend announcements, with uncertainty over the market's near-term direction weighing on confidence. Profit-booking following recent bargain hunting triggered early selling, while intermittent buying support failed to reverse the trend.

A DSE official, speaking on condition of anonymity, attributed the low turnover partly to technical arrangements to test the exchange's disaster recovery server. Weak network connectivity also dampened trading activity, although the official said brokers had been notified in advance.

Textiles accounted for the largest share of turnover at 23%, followed by General Insurance at 14.4% and Pharmaceuticals at 10.3%.

Sectoral performance was mixed, with Jute gaining 1.8%, Services 0.7% and non-bank financial institutions (NBFIs) 0.5%. Mutual Funds led the losers, falling 1.2%, followed by IT at 0.8% and Ceramics at 0.7%.

Sonali Aansh, IPDC Finance, Paramount Textile, Asiatic Laboratories and Sonargaon Textile were among the most-traded stocks.

RSRM Steel topped the gainers, rising 9.52%, while Sharp Industries led the losers, shedding 5.22%.

CAL Bangladesh has recommended five listed banks – BRAC Bank, City Bank, Eastern Bank, Dutch-Bangla Bank and Pubali Bank – as its top picks, projecting share price upside of 44% to 81% as banking sector reforms create opportunities for stronger lenders to expand credit and gain market share.

In its research report titled "Banking on the Next Cycle", the investment research firm identified 14 "Cycle-Ready" banks based on asset quality, capital adequacy, funding strength and lending capacity.

It said these banks are better positioned to withstand the sector's ongoing balance-sheet adjustments and benefit from a recovery in credit demand.

BRAC Bank leads the recommendations, with a target price of Tk117.45 against its closing price of Tk65 on 5 October 2026, implying potential upside of 80.7%. City Bank has a target price of Tk48.36, suggesting a 62.8% gain from Tk29.70.

Eastern Bank's target price of Tk34.38 indicates 50.8% upside from Tk22.80, while Dutch-Bangla Bank could gain 47.8% to reach Tk67.25 from Tk45.50. Pubali Bank has a target price of Tk55.88, implying 44% upside from Tk38.80. The projections exclude cash dividend yields.

Stronger banks positioned to capture credit recovery

CAL Bangladesh said stricter loan classification and provisioning requirements have exposed deep weaknesses in the banking system, pushing deposits and future credit expansion towards better-capitalised institutions.

The sector's gross non-performing loan (NPL) ratio stood at 32.8% in June 2026, while the system-wide provision shortfall reached Tk2.2 trillion. Ten troubled banks held 74% of total NPLs, highlighting the concentration of asset-quality problems.

In contrast, the 14 Cycle-Ready banks maintained a median NPL ratio of 3.8% and a combined capital adequacy ratio of 15.79%, above the 12.5% benchmark used in the study. These banks also held Tk165.5 billion in excess capital above that threshold, providing room to expand lending as demand recovers.

The report projects private sector credit growth to accelerate from 4.3% in FY26 to 12% by FY29, adding Tk6.23 trillion to the country's private credit stock from June 2026 levels. The 14 banks could account for 55.5% of the expected expansion in credit, it said.

The recovery is expected to begin with retail and small and medium enterprise (SME) lending, including consumer finance and credit cards, before gathering momentum in corporate lending, import financing and trade services.

BRAC Bank's deposit growth, SME franchise and stake in mobile financial services provider bKash underpin its outlook, according to the report. City Bank is positioned to benefit from a recovery in consumer spending through its cards, payments and retail banking businesses.

Eastern Bank's well-provisioned loan book and transaction-banking operations support its growth prospects. Pubali Bank's nationwide network and trade relationships offer scope to expand lending, while Dutch-Bangla Bank's low-cost deposit base and extensive distribution network provide capacity to turn excess liquidity into loans.

Contagion, spread caps pose risks

Despite the opportunities, CAL Bangladesh flagged risks from financial distress at weaker banks, regulatory limits on lending-deposit spreads and concentrated corporate exposures.

The report said 22 of the country's 61 banks reported losses, while 19 fell below the statutory minimum capital adequacy ratio. Financial difficulties at troubled lenders could trigger liquidity pressures across the sector.

Regulatory enforcement of a 4% cap on weighted-average lending-deposit spreads could also squeeze net interest margins. As of July 2026, 55 banks, including 13 Cycle-Ready institutions, were operating above the ceiling, according to the report.

Large corporate exposures present another vulnerability, as loan restructuring or classification could trigger substantial provisioning requirements at individual banks.

CAL Bangladesh said the recommended banks offer attractive valuations relative to their returns on equity, but the projected gains depend on the pace of economic recovery, credit demand and banks' ability to manage regulatory and asset-quality risks.

The Bangladesh Securities and Exchange Commission (BSEC) has proposed raising the cap on using initial public offering (IPO) and rights offer (RPO) proceeds to repay existing loans from 30% to 50%. It would also make escrow accounts mandatory to ensure the money goes to its declared purposes.

Under the draft amendments to the Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules, 2025, companies would have to undergo pre-IPO verification by a BSEC-listed auditor before applying. The draft also tightens disclosure requirements for share pricing. Stock exchanges would get a 20-day deadline to review IPO applications and inspect companies' factories or business premises.

The draft was published on 18 October, and the commission has invited comments, suggestions and objections within two weeks. The proposed changes have not yet been finalised.

Loan repayment limit to rise from 30% to 50%

Under the existing provision, companies can use up to 30% of their IPO or RPO proceeds to repay existing loans, subject to specified conditions. The proposed amendment would raise the ceiling to 50%.

This means a company raising Tk100 crore through an IPO or RPO could use up to Tk50 crore to repay eligible loans, subject to the proposed conditions.

The facility would not apply to all types of borrowing. The loans must have been used for a company project or for balancing, modernisation, rehabilitation and expansion (BMRE) activities. An auditor's report would also be required to verify that the borrowed funds were used for the stated purposes.

The proposal would prohibit the use of IPO or RPO proceeds to repay loans classified as defaulted or loans that have been rescheduled.

The higher ceiling could help companies reduce their debt burdens and financing costs. However, using a larger share of public-offer proceeds to repay loans could leave less money for new projects, machinery purchases, production expansion and other business investments. Investors would therefore need to assess whether the proposed use of proceeds aligns with the company's disclosed plans.

Escrow accounts proposed for IPO proceeds

The draft proposes requiring companies to deposit IPO proceeds into a separate escrow account with a scheduled bank. The bank would have to receive written instructions restricting withdrawals or the use of funds except in accordance with the purposes and procedures specified in the prospectus.

Companies typically disclose in their prospectuses how they intend to use IPO proceeds, including for factory construction, machinery purchases, business expansion, working capital and loan repayment.

The proposed arrangement is intended to strengthen controls over the use of public-offer funds and reduce the risk of spending outside the purposes disclosed to investors. It would also provide a framework for monitoring whether companies follow their stated commitments. The detailed procedures for withdrawing and using the funds would depend on the final rules.

Pre-IPO verification by BSEC-listed auditors

The proposed amendments would require companies to obtain pre-IPO verification from an auditor listed with the BSEC before submitting an IPO application.

The verification would examine the accuracy, authenticity and completeness of financial information and disclosures included in the prospectus. The auditor's report would have to be included in the prospectus and submitted with the application.

The proposed scope covers financial records, bank accounts, loans and liabilities, the raising and use of capital, related-party transactions, and potential fraud or misrepresentation of financial information.

The measure is intended to strengthen scrutiny before companies enter the public market and improve the reliability of information available to prospective investors.

Conditional IPO eligibility exemptions proposed

The draft also proposes conditional exemptions from certain IPO eligibility requirements for specified categories of companies.

These include companies operating in regulated sectors, capital-intensive companies with an asset base of at least Tk500 crore, and Greenfield companies, subject to the conditions set out in the draft and the relevant regulatory approvals.

For eligible companies receiving such exemptions, disclosure of a plan for achieving future profitability is also proposed.

The changes could widen access to the capital market for certain companies that do not meet all existing eligibility criteria. However, the proposed exemptions would remain subject to regulatory scrutiny and the applicable conditions.

More disclosure on share pricing and valuation

To improve transparency in IPO pricing, the proposed amendments would require companies to disclose their proposed share prices and explain the rationale behind those prices.

For book-building issues, the draft also proposes disclosure of valuation statistics, including averages, medians and percentiles derived from the price-discovery process.

Companies would be required to use at least four valuation methods, including a minimum of two absolute valuation methods and two relative valuation methods.

These disclosures are intended to give investors more information to assess whether an IPO price is justified by a company's financial position, business prospects and valuation.

20-day deadline for stock exchange review

The draft proposes requiring stock exchanges to complete their review of IPO applications within 20 days, including examining financial statements and other documents and inspecting the company's factory or business premises.

Stock exchanges would also be allowed to seek assistance from experts where necessary. The proposed deadline is aimed at making the IPO review process more time-bound while retaining scrutiny of applicants' financial information and operations.

Lead issue manager to retain final responsibility

Under the proposed changes, a lead issue manager would remain ultimately responsible and accountable for the entire public offering even if it assigned specific tasks to another merchant bank or institution.

The provision seeks to prevent the lead issue manager from avoiding responsibility by outsourcing parts of the IPO process.

Changes proposed to OFS, lock-in rules and investor definitions

The draft also proposes expanding the scope of offer for sale (OFS) arrangements for eligible companies.

Changes to share lock-in requirements for foreign and strategic investors are also included. In addition, the commission has proposed revisions to the definitions of institutional investors and high-net-worth individuals, along with changes concerning the qualifications of personnel involved in share valuation.

Taken together, the proposals seek to tighten controls over IPO proceeds, strengthen pre-listing financial verification and improve transparency in share pricing and the public-offer process.

The changes will take effect only if the draft amendments are approved and formally issued by the commission.

US Secretary of State Marco Rubio is set to visit India for the second time this year, as Washington seeks to bolster ties with a strategic partner despite months of friction over a trade deal.

Rubio will meet senior Indian officials, but will bypass the Indian capital during the trip in the coming week.
Instead he will focus on investment and energy during visits to financial hub Mumbai and India’s oil hub of Jamnagar, which is home to billionaire Mukesh Ambani’s refining complex, the world’s largest.

The elephant in the room will be the inability by both countries to seal their long-awaited trade deal, experts say.

Several factors, including US President Donald Trump’s tariff blitz, friction over energy imports and Washington’s warmer ties with India’s arch-rival Pakistan have made it harder for negotiators to clinch an agreement.

Rubio will start his six-day overseas trip on Saturday with a visit first to Uzbekistan before arriving in India, according to the US State Department.

Here are some of the challenges the trade pact has faced and the road ahead.

WHY HAS THE DEAL BEEN DELAYED?

India and the United States agreed in February on the framework for an interim deal under which Washington would lower reciprocal tariffs from 25 percent to 18 percent and India would reduce duties on a range of industrial and agricultural goods.

Despite months of negotiations, the agreement has not yet been finalised and signed.

One reason is the legal uncertainty surrounding Trump’s tariff plans after court challenges undermined the reciprocal tariffs that formed their basis.

“The February framework had offered to reduce India’s reciprocal tariff... in return for substantial Indian concessions. Once that tariff regime was struck down, the value of the US offer became unclear,” trade expert Ajay Srivastava said in a note.

India is also wary of new trade measures by Washington that could impact it, including an investigation into alleged unfair practices in several countries and a new law that allows for up to 100 percent tariffs on nations that purchase Russian oil.

Trump on Friday signed an executive order that waived those threatened sanctions.

WHERE DO NEGOTIATIONS STAND?

Progress appears to have hit several hurdles.

For the better part of this year, both governments spoke optimistically about the possibility of finalising the interim deal.

US ambassador to India Sergio Gor in June said negotiators were working on the “last one percent” of the pact.

More recently, the tone has turned markedly cautious.

India’s Finance Minister Nirmala Sitharaman said last week that talks had hit a “plateau”, with little room for further concessions.
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Her remarks came days after US Trade Representative Jamieson Greer said an announcement was not “imminent”.

WHAT HAVE BEEN THE MAIN STICKING POINTS?

Agriculture remains a sensitive area for India, which is reluctant to expose farmers to greater foreign competition.

Washington, meanwhile, wants India to buy more US energy supplies.

New Delhi has also insisted that its final tariff rate should be competitive with those received by other regional manufacturing rivals such as Vietnam.

Indian trade minister Piyush Goyal said this week that the first tranche of the deal was in its final stages, but added that it would not be operational until India secured an edge over its competitors.

“It’s going through the final contours, the legal drafting, and we hope to be able to finalise that soon and operationalise that once we get competitive advantage over our peer countries,” he said.

HOW HAS TRADE BEEN HOLDING UP?

Goods exports to the US jumped 21 percent in August to $8.3 billion compared to the same month a year earlier, when India faced 50 percent tariffs.

The surge in exports has been a bright spot for the Indian economy, which has been roiled by high energy prices due to war in the Middle East.

If higher tariffs were to return, economists say it would cast a shadow on India’s growth outlook, hurt market sentiment and heap pressure on an already-weak rupee.

দেশের পুঁজিবাজারে বিনিয়োগকারীদের তথ্যপ্রাপ্তি ও সিদ্ধান্ত গ্রহণে প্রথমবারের মতো আসছে কৃত্রিম বুদ্ধিমত্তা (এআই) নির্ভর বিনিয়োগ সেবা। ফলে তথ্য-উপাত্ত ও বিশ্লেষণভিত্তিক বিনিয়োগ সিদ্ধান্ত গ্রহণে বিনিয়োগকারীদের সক্ষমতা বাড়বে। এ সেবা চালু করতে দেশের অন্যতম শীর্ষস্থানীয় ব্রোকারেজ হাউজ লংকাবাংলা সিকিউরিটিজ পিএলসি ও মার্কোপোলো এআইয়ের মধ্যে চুক্তি স্বাক্ষরিত হয়েছে। গতকাল রাজধানীর একটি হোটেলে এন্ড-টু-এন্ড ইনভেস্টমেন্ট জার্নি পাওয়ার্ড বাই এআই শীর্ষক অনুষ্ঠানে এ চুক্তি হয়।

স্বাগত বক্তব্যে লংকাবাংলা সিকিউরিটিজের প্রধান নির্বাহী কর্মকর্তা খন্দকার সাফ্ফাত রেজা বলেন, ‘‌১৯৯৭ সালে প্রতিষ্ঠার পর প্রায় ৩০ বছর ধরে লংকাবাংলা পুঁজিবাজারে উদ্ভাবন ও বিনিয়োগকারীদের সচেতনতা বৃদ্ধিতে ভূমিকা রাখছে। ২০১৩ সালে দেশে প্রথমবারের মতো আর্থিক তথ্যভিত্তিক পোর্টাল চালু করা হয়। বিনিয়োগকারীরা এখন আরো সংক্ষিপ্ত, নির্ভুল ও কার্যকর তথ্য চান, তাই দুই দশকের তথ্যভাণ্ডারকে এআইয়ের সঙ্গে সমন্বয় করা হচ্ছে। এটি নতুন প্রজন্ম ও ক্ষুদ্র বিনিয়োগকারীদের অংশগ্রহণ বাড়ানোর কৌশলগত পদক্ষেপ।’

মার্কোপোলো এআইয়ের স্ট্র্যাটেজিক গ্রোথ অফিসার ফাহমিদুল হাসান জানান, বিশ্বের বিভিন্ন খাতে মার্কোপোলোর ১ হাজার ৪০০টির বেশি প্রাতিষ্ঠানিক গ্রাহক আছে। সান ফ্রান্সিসকোতে প্রধান কার্যালয়ের পাশাপাশি রিয়াদ, বাংলাদেশ ও ভারতে তাদের কার্যালয় রয়েছে। এ প্রযুক্তিতে বিনিয়োগকারীরা অর্থনীতি ও পুঁজিবাজারের গতিপ্রকৃতি এবং শেয়ারের তুলনামূলক বিশ্লেষণ করতে পারবেন, নিজের আগ্রহ অনুযায়ী শেয়ারের তথ্য পাবেন এবং সার্বক্ষণিক সহায়তার জন্য ভয়েস ও চ্যাটভিত্তিক সেবাও থাকবে।

মার্কোপোলো এআইয়ের প্রধান নির্বাহী কর্মকর্তা তাসফিয়া তাসবিন বলেন, ‘‌গত কয়েক মাস নিরলস কাজ করে উদ্যোগটি বাস্তবায়ন করা হয়েছে। মানসম্পন্ন ও নির্ভরযোগ্য তথ্যভাণ্ডারকে গুরুত্ব দেয়ায় ফলাফল আশাব্যঞ্জক। এটি শুধু নতুন পণ্যের উদ্বোধন নয়, পুঁজিবাজারে নতুন সেবাক্ষেত্রের সূচনা।’

লংকাবাংলার প্রায় তিন দশকের অভিজ্ঞতা ও তথ্যভাণ্ডারের সঙ্গে মার্কোপোলোর এআই প্রযুক্তি যুক্ত হচ্ছে উল্লেখ করে লংকাবাংলা সিকিউরিটিজের চেয়ারম্যান মাহবুবুল আনাম বলেন, ‘‌এতে বিনিয়োগকারীরা দ্রুত ও সহজে বাজার বিশ্লেষণ, বিনিয়োগের সুযোগ শনাক্তকরণ এবং পোর্টফোলিও গঠন করতে পারবেন। লংকাবাংলার মোট লেনদেনের প্রায় ৬০ শতাংশ এখন পোর্টালের মাধ্যমে হয়। জেনারেশন জেড ও প্রযুক্তিবান্ধব তরুণদের সম্পৃক্ত করা তাদের অন্যতম কৌশলগত অগ্রাধিকার।’

প্রযুক্তি ব্যবহারে লংকাবাংলা সবসময় এগিয়ে থাকে উল্লেখ করে ডিএসই ব্রোকার্স অ্যাসোসিয়েশন অব বাংলাদেশের (ডিবিএ) সভাপতি সাইফুল ইসলাম বলেন, ‘‌পাকিস্তান, শ্রীলংকা ও ভিয়েতনামের তুলনায় বাংলাদেশের পুঁজিবাজার পিছিয়ে থাকার অন্যতম কারণ প্রযুক্তি গ্রহণে ধীরগতি ও সুশাসনের ঘাটতি। সাধারণ বিনিয়োগকারীদের জন্য প্রাথমিক তথ্য পাওয়া এখনো অনেকটা দুঃস্বপ্নের মতো। কোম্পানির মৌলিক তথ্য সহজে পাওয়া গেলে বিনিয়োগকারী, গবেষক ও গণমাধ্যমকর্মীরা নিজেরাই বিশ্লেষণ করতে পারতেন।’

ডিএসইর পরিচালক মিনহাজ মান্নান ইমন বলেন, ‘‌বিশ্বের সঙ্গে তাল মেলাতে হবে এবং পুঁজিবাজার নতুন প্রযুক্তি গ্রহণের জন্য প্রস্তুত। অর্থনীতি ভালো থাকলে, রাজনৈতিক পরিস্থিতি স্থিতিশীল থাকলে এবং বাজারের ওপর অপ্রয়োজনীয় চাপ না থাকলে ইতিবাচক গতি ফিরবে।’

চুক্তিটিকে পুঁজিবাজারের জন্য গুরুত্বপূর্ণ মাইলফলক হিসেবে অভিহিত করে ডিএসইর ব্যবস্থাপনা পরিচালক নুজহাত আনোয়ার বলেন, ‘একটি প্রতিষ্ঠান প্রযুক্তিতে এগোলে পুরো বাজার উপকৃত হয়, তাই এমন উদ্যোগে সবার সমর্থন থাকা উচিত। তরুণদের সম্পৃক্ত করতে বাজার পিছিয়ে আছে, এখনই যুক্ত করা না গেলে ভবিষ্যতেও একই সমস্যা থাকবে।’

প্রধান অতিথি বিএসইসির কমিশনার নাফিজ আল তারিক বলেন, ‘‌জেনারেশন আলফা ও জেনজি সব সেবা হাতের নাগালে চায়। বিএসইসি আর্থিক পরামর্শক বিধিমালা প্রণয়নে কাজ করছে, যেখানে মূলত ব্যক্তির মাধ্যমে পরামর্শ সেবাকে গুরুত্ব দেয়া হয়েছে; তবে রোবো-অ্যাডভাইজরি সেবাও অন্তর্ভুক্ত থাকবে। ব্যক্তিকেন্দ্রিক সেবায় পরামর্শকরা সাধারণত বড় গ্রাহকদের দিকেই বেশি আগ্রহী থাকেন, ফলে ক্ষুদ্র সঞ্চয়কারীরা বাইরে থেকে যান। ডিজিটাল প্লাটফর্ম ও এআই ব্যবহার করে গ্রামাঞ্চলের বিনিয়োগকারীরাও পরামর্শ পেতে পারেন।’ আগামী ৫-১০ বছরে মানুষ মোবাইল ফোনেই আর্থিক পরামর্শ নিয়ে সহজে বিনিয়োগ করতে পারবে বলে তিনি আশা করেন।

ধন্যবাদ জ্ঞাপন করে লংকাবাংলা সিকিউরিটিজের ব্যবস্থাপনা পরিচালক নাসির উদ্দিন চৌধুরী বলেন, ‘‌এ আয়োজন একটি কৌশলগত অংশীদারত্বের প্রতিফলন। বিনিয়োগসংক্রান্ত তথ্য সহজলভ্য করা, সিদ্ধান্তকে আরো তথ্যনির্ভর করা এবং বিনিয়োগকারীদের অভিজ্ঞতাকে আরো কার্যকর করা উভয় প্রতিষ্ঠানের অভিন্ন লক্ষ্য। দায়িত্বশীলভাবে এআই ব্যবহার সব অংশীজনের জন্য নতুন সম্ভাবনা তৈরি করতে পারে।’

The US budget deficit grew to almost $2 trillion over the past year, government data showed Friday, reaching its highest level since 2021 despite President Donald Trump’s promises to cut public spending.

The expansion comes amid growing worries over the massive $40.3 trillion US debt load and rising inflation, as the cost of borrowing climbs.
Refunds of Trump’s tariffs after they were overturned have further fueled the budget gap.

The federal deficit, which occurs when government spending exceeds its revenues, rose to $1.99 trillion in fiscal year 2026, the Treasury Department said. This marked a 12-percent increase from the prior year, when the shortfall came in at $1.78 trillion.

A key driver of expenditures was the rising interest paid on public debt, which jumped $144 billion to a record $1.36 trillion.

Interest costs on around $32 trillion in publicly held US debt have been ballooning in recent years, and climbing bond yields have sparked further concerns.

Treasury bond yields, which influence interest rates for mortgages and auto loans, have jumped this year, with steeper borrowing costs adding to pressures that US voters face ahead of November’s midterm elections.

Meanwhile, an expected influx of revenue from Trump’s sweeping tariffs have failed to fully materialize during his second term.

The Supreme Court struck down his global duties in February, triggering a wave of refunds. Treasury data released Friday reflected $145 billion in customs refunds over the year -- primarily due to tariffs -- erasing significant gains from Trump’s duties.

Overall, government revenues climbed by three percent to $5.40 trillion in the latest fiscal year, which ended September 30.

But spending was much higher, rising by six percent to $7.40 trillion.

The deficit will likely be similar for the next year, said Nancy Vanden Houten of Oxford Economics.

But she warned “the risk may be for a larger budget gap if the war with Iran persists well into the fiscal year.”

The Trump administration has pledged to cut deficits and government spending since he returned to the White House last year.

Besides slashing the federal workforce and foreign aid, the Republican-controlled Congress pushed through cuts to the Medicaid health insurance scheme and moved to shrink the federal food assistance program too.

But they also extended expiring tax cuts and provided fresh funding for Trump’s migrant deportation drive.

The latest data released Friday showed that upticks in tax collection from individuals and customs revenues were offset by higher refunds and lower corporate tax collection.

Among other sectors, spending on defense military programs increased by $48 billion, or six percent, over the year to $917 billion.

Taken together, a Treasury official estimates the US deficit-to-GDP ratio is around 6.2 percent, up from 5.8 percent last year.

This stands in contrast to Treasury Secretary Scott Bessent’s previously stated goal of bringing the deficit down to three percent of GDP, alongside other targets like spurring economic growth of three percent.
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The latest budget figures come less than three weeks before US midterm elections, where Trump’s Republican party is fighting to retain control of Congress.

Ahead of the crucial vote, both Republicans and Democrats have raised ideas that could widen the budget shortfall further.

Trump recently promised $5,000 to every American adult if Republicans maintained control of Congress, a plan that would cost over $1 trillion.

Democrats say they are looking to reverse Medicaid cuts and revive health care tax breaks.

Several banks that initially expressed interest in acquiring Standard Chartered Bangladesh's retail banking business have stepped back, citing concerns over the cost and complexity of absorbing around 1,500 employees, differences in deposit pricing, and customer behaviour.

City Bank is the only local lender to have signed a non-disclosure agreement (NDA) with Standard Chartered to assess the proposed deal's financial viability. Other banks approached for the transaction have declined to proceed, according to banking industry insiders.

BRAC Bank, Mutual Trust Bank (MTB), Pubali Bank and Eastern Bank were among the lenders approached to sign the NDA. However, they backed away after preliminary discussions, mainly over the implications of integrating Standard Chartered's retail banking workforce.

A senior City Bank executive, speaking on condition of anonymity, said the bank had signed the NDA but had yet to decide whether to proceed. "Everything depends on the cost-benefit analysis. Integrating the employees is a major issue," the executive told TBS.

On 8 October, Standard Chartered announced it was exploring the sale of its Wealth and Retail Banking business in Bangladesh as part of a strategy to focus on segments where it has greater scale and a more differentiated offering.

The bank said it had held informal talks with local lenders before the announcement.

Standard Chartered, which has operated in Bangladesh for more than 120 years, said it would support employees affected by the sale fairly and transparently.

Deposit pricing, customer behaviour

MTB, which had initially shown interest, also declined to sign the NDA. MTB Managing Director Syed Mahbubur Rahman said Bangladesh is a different market.

"Someone who keeps money in Standard Chartered is happy to receive 2% interest, but when that person comes to MTB, they may demand 8%. Our lending rates are more or less the same, so if we raise deposit rates to that level, our interest margin will shrink," said.

He further said most retail deposits are held for three or six months, making it uncertain how much of Standard Chartered's deposit base would stay with the buyer.

Depositors might decide that the acquiring bank was not suitable for them and move their money elsewhere, he said. "In that case, the deposits would be redistributed across the banking sector rather than retained by the buyer."

'No comparison with Indian StanChart'

In April 2026, India's Kerala-based Federal Bank agreed to acquire around 450,000 credit cards from Standard Chartered's standalone retail credit-card portfolio in the country.

The deal is expected to close by the end of 2026. The transaction value was not disclosed, while the final portfolio size will depend on the timing of the transfer and customer consent.

Regarding the development, Mahbubur said, "In India, banks such as HDFC and ICICI are much stronger competitors to Standard Chartered. Many employees at those banks also earn more than their counterparts at Standard Chartered."

He further said the situation in Bangladesh is different. "Here, Standard Chartered is the number-one bank. We cannot assess the Bangladeshi market by applying the same logic used in India or other international markets," he said.

He warned that customers could shift deposits elsewhere if they were unwilling to bank with the buyer. "If Pubali acquires the business, some customers may move their deposits elsewhere," he said.

Different salary structure, corporate culture

A senior Pubali Bank executive said the bank had held preliminary talks but declined to sign the NDA, citing concerns over employee integration, corporate culture and pay disparities.

"Our corporate culture and salary structure differ from those of multinational banks, which could create conflicts," the executive said.

Several banks received the NDA but were reluctant to proceed, mainly over the workforce issue, the executive added. Around 1,500 of Standard Chartered's 1,800 employees work in retail banking, raising questions over whether the buyer would have to absorb them all.

If no buyer emerges, Standard Chartered could follow HSBC's example. HSBC closed its retail banking business in Bangladesh and offered employees compensation under a golden-handshake arrangement, the executive said.

Business profile

The proposed sale involves a substantial retail banking operation. Standard Chartered's retail and CMSME loan portfolio stood at Tk8,479 crore at the end of 2025, accounting for nearly 28% of its total loan portfolio of Tk30,423 crore, according to its financial statements.

The bank's total deposits exceeded Tk40,000 crore, of which around Tk8,000 crore, or approximately 20%, came from retail customers.

The proposed sale comes as Standard Chartered reduces its physical footprint and changes customer services, encouraging cashless transactions.

Five years ago, the bank had around 24 branches and 83-96 ATMs. It now operates 18 branches and 70 self-service terminals, including ATMs and cash-recycling machines.

It introduced a Tk50,000 minimum balance requirement for new accounts several years ago and recently discontinued transfers to mobile financial service (MFS) accounts. Customers have also reported app outages for maintenance at least twice a month.

Bangladesh Bank's Tk20,000 crore refinancing scheme to revive closed factories has gained some momentum, with loan disbursements rising to Tk560 crore by 18 October, although most applications remain under processing.

According to the central bank's latest data, banks have submitted loan applications worth Tk1,490 crore under the scheme, of which Tk560 crore has been disbursed and another Tk929 crore is being processed for disbursement.

The scheme had received applications worth Tk800 crore by 30 September, against which Tk110 crore had been disbursed to eight businesses, indicating a pickup in financing over the following 18 days.

However, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) says none of the nearly 200 garment factories it certified as meeting the scheme's requirements has received funding.

"We understand that not a single factory has received funds under this scheme so far," said BGMEA Vice-President Md Shihab Uddoja Chowdhury.

Four factory owners also told TBS that they are still waiting for funds to be released.

According to Bangladesh Bank's latest figures, 15 refinancing schemes with a combined allocation of Tk60,000 crore had received applications worth Tk14,519 crore. Of this amount, Tk11,959 crore had been disbursed, while applications worth another Tk2,560 crore remained under processing.

Of the package's total allocation, Tk41,000 crore was earmarked for refinancing, including Tk19,000 crore to be provided from Bangladesh Bank's own funds.

Banks cautious despite low-cost central bank funding

The Bangladesh Bank announced the scheme in June, but banks took until October to complete the application and scrutiny process.

Although the central bank provides liquidity at a lower interest rate, commercial banks bear the entire credit risk associated with the loans. They are solely responsible for assessing borrowers' business capacity and prospects for survival.

Under the arrangement, borrowers first apply through commercial banks. The banks then assess the applications and forward those they approve to Bangladesh Bank for funding.

This allocation of credit risk may be contributing to the slow progress, although the available data do not establish the reasons for the delays.

At the launch of the broader package, Governor Md Mostaqur Rahman said the initiative could create around 25 lakh new jobs.

Other refinancing schemes show mixed performance

Performance across the other refinancing schemes varies considerably, with export pre-shipment credit and cottage and micro-enterprise financing accounting for substantial disbursements, while several employment, export diversification and rural development schemes have made little or no progress.

The Pre-shipment Credit Refinance Scheme recorded the highest disbursement, releasing Tk6,917 crore against its Tk5,000 crore target, exceeding the allocation by 38.34%.

The Cottage and Micro Sector Entrepreneurs Special Scheme disbursed Tk2,500 crore against its Tk5,000 crore allocation, achieving 50% implementation.

The CMSME Working Capital Refinance Fund disbursed Tk907.73 crore against its Tk5,000 crore allocation, while the Creative Economy Scheme fully disbursed its Tk500 crore allocation.

The Overseas Employment Financing Scheme released Tk200 crore against a Tk1,000 crore target.

The Agriculture and Rural Food Security Refinance Scheme, with an allocation of Tk10,000 crore, disbursed Tk292.90 crore, equivalent to 2.93% of its target.

The Agro-based Special Economic Centre in North Bengal disbursed Tk48.67 crore against its Tk3,000 crore allocation.

The Start-up Sector Financing Scheme recorded Tk32.59 crore in disbursements, with another Tk5 crore under processing, against its Tk500 crore allocation.

The Unemployed Youth Employment Financing Scheme had Tk1,000 crore under processing against its Tk1,000 crore allocation, with no disbursement recorded as of 15 October.

The Green Factory Building and Green Industries Refinance Scheme had Tk527.47 crore under processing against its Tk1,000 crore target, while the Leather Goods and Footwear Export Sector Scheme had Tk98 crore under processing against its Tk2,000 crore allocation. Neither scheme had recorded any disbursement.

Three schemes - the Export Diversification Refinance Scheme, the Rural Economic Activity Dynamics Scheme and the Frozen Shrimp and Other Fish Export Sector Scheme - had recorded neither disbursements nor applications under processing. 

Their combined allocation stood at Tk6,000 crore, comprising Tk3,000 crore for export diversification, Tk1,000 crore for rural economic activities and Tk2,000 crore for frozen shrimp and other fish exports.

The Bangladesh Telecommunication Regulatory Commission (BTRC) has decided to conduct a study to identify remote, hard-to-reach, underserved and disaster-prone areas where telecom services are inadequate or of poor quality and explore ways to ensure reliable, high-quality connectivity.

At a recent commission meeting, the telecom regulator gave in-principle approval to the proposed research and decided to form a committee to prepare a detailed research proposal within one month for submission to the BTRC chairman.

According to the documents, the study will identify areas with inadequate telecom coverage and assess local connectivity needs, while exploring possible approaches to ensure quality services in places where expanding mobile networks may not be commercially viable.

The initiative comes as the government seeks to ensure reliable and high-speed internet access for citizens across the country, including both urban and rural areas, under its election manifesto.

The government is also working on a connectivity master plan, while the Telecommunications Network and Licensing Policy, 2025, provides for spectrum-based incentives to expand networks in remote and underserved areas.

During the meeting, Brig Gen Mohammad Moniruzzaman Jewel, director general of the BTRC’s spectrum management division, presented a detailed proposal, highlighting the importance of quality telecom services in the daily lives of people across all sections of society.

He noted that reliable telecommunications are essential for the development of people living outside major urban centres. However, expanding quality mobile networks in remote and disadvantaged areas is often not commercially sustainable for operators.

As a result, he said, even where some network coverage exists, the quality and availability of services may not meet the government’s goal of ensuring high-speed, quality connectivity nationwide.

The proposed research will review international best practices to identify suitable approaches for addressing the problem, according to the meeting minutes.

The study is expected to examine the geographical extent of underserved areas, assess their telecommunications requirements and identify potential methods for delivering quality services.

The regulator said a systematic assessment is necessary to determine where network expansion is most needed and what measures could make service delivery viable in areas that operators may otherwise find commercially unattractive.

The proposed research will also take into account the government’s election manifesto, its plans for expanding telecommunications services, and existing laws and regulations.

Under the decision, the committee will be headed by a director general nominated by the BTRC chairman.

Representatives from the spectrum management, spectrum services, finance, accounts and revenue divisions, along with the legal wing, will serve as members.

An officer nominated by the chairman will act as the member secretary.

The commission’s decision marks an initial step towards developing a more targeted approach to expanding telecommunications services in areas where geographical challenges, disaster risks and limited commercial returns can discourage network investment.

Businesses will no longer need prior approval from the chief boiler inspector to import boilers.

The industries ministry shared the information through a letter on October 7 to the central bank, and the banking regulator today asked all authorised dealer banks involved in foreign exchange transactions to take necessary action accordingly.
According to the ministry’s letter, the decision was taken at a board meeting as part of efforts to simplify the boiler import process.

Earlier, on July 14, Bangladesh Bank issued a circular making it mandatory to obtain prior approval from the Office of the Chief Inspector of Boilers to import boilers and boiler components.

The latest circular communicates the suspension of the prior approval requirement, but the documents do not specify whether the requirement has been permanently scrapped or whether a replacement procedure will be introduced.

Walton High-Tech Industries PLC, the country's tech giant listed in the engineering sector on the capital market, has set a unique precedent by disbursing its approved cash dividend to investors just one day after holding its annual general meeting (AGM).

According to a press release, the company distributed a 180% cash dividend to institutional and general investors for the 2025-26 financial year immediately following approval.

The disclosure came after Walton High-Tech successfully conducted its 20th AGM on a digital platform on 15 October 2026, where shareholders unanimously approved the board's proposal for a 180% cash dividend and a 10% stock dividend.

Walton's Deputy Managing Director and Company Secretary Rafiqul Islam stated that the rapid payout was made possible by the company's technological excellence, operational efficiency, and robust liquidity position.

Under the approved payout, shareholders received Tk18 in cash for each general share with a face value of Tk10, alongside one bonus share for every 10 general shares held.

The company's audited financial report shows a net profit of Tk1,124.57 crore for the 2025-26 fiscal year, up from Tk1,036.62 crore in the previous year. Consequently, earnings per share (EPS) rose to Tk33.75 from Tk31.11. Walton's net asset value (NAV) with revaluation reached nearly Tk12,704 crore, bringing the revalued NAV per share to Tk381.26 and non-revalued NAV per share to Tk280.24.

The company secretary added that the approved 10% stock dividend, sourced entirely from retained earnings, will fund Walton's ongoing expansion of green energy capacity, ensure an uninterrupted power supply, and support modernising and balancing activities.

Bangladesh Bank has disbursed around Tk 12,000 crore of its Tk 60,000 crore stimulus package by mid-October to revive struggling businesses, reopen closed factories and boost investment and employment.

More than Tk 2,500 crore was still in the process of being disbursed, according to the central bank’s latest progress report.

However, several targeted sectors, including jobless youths, have yet to receive any loans.

Announced in May, the package aims to support the troubled private sector, revive economic activity and create jobs.

It has two components: a Tk 41,000 crore refinancing fund sourced from banks with excess liquidity and a Tk 19,000 crore fund drawn from Bangladesh Bank’s own resources, backed by a government guarantee.

The scheme-wise performance showed considerable differences, with export pre-shipment credit and cottage and micro-enterprise financing recording substantial disbursements, while several employment, export diversification and rural development schemes registered no loan disbursement.

The pre-shipment credit refinance scheme emerged as the largest contributor to disbursements, with Tk 6,917 crore released against its Tk 5,000 crore target, exceeding the allocation by 38 percent.

The cottage and micro sector entrepreneurs special scheme disbursed Tk 2,500 crore against its Tk 5,000 crore target, achieving 50 percent implementation.

The CMSME working capital refinance fund released Tk 908 crore against an allocation of Tk 5,000 crore, while the creative economy scheme fully disbursed its Tk 500 crore allocation.

The overseas employment financing scheme disbursed Tk 200 crore against a target of Tk 1,000 crore.

The agriculture and rural food security refinance scheme, which has an allocation of Tk 10,000 crore, disbursed Tk 293 crore, representing around 3 percent of its target.

Similarly, the agro-based special economic center in North Bengal recorded disbursements of Tk 49 crore against its Tk 3,000 crore allocation.

Syed Mahbubur Rahman, former chairman of the Association of Bankers, Bangladesh (ABB), said even a normal loan takes more than two to four months to disburse.

Disbursing a loan requires examining many things, processing them, and involves various steps. On top of that, these are all closed factories, so even more work is required here, he said.

Furthermore, he added, there are many guidelines to follow when granting these loans under the package. For instance, there is a condition that those who have not engaged in money laundering will get the loan, but it is difficult for banks to be certain about this.

Moreover, he said, applicants must apply to receive the loan, which many do not do. In addition, there are gas shortages and several other problems, so many do not even apply.The biggest issue is that loans must be disbursed after considering whether they will be repaid. Banks have already started disbursing loans, and considering everything, loan distribution may gradually increase in the future, he added.

Vietnam and four European nations outside the EU signed a free trade agreement in Hanoi on Sunday, seeking to diversify their markets as US tariffs disrupt global commerce.

The deal, between Southeast Asia’s fastest-growing economy and the European Free Trade Association (EFTA), which includes Iceland, Liechtenstein, Norway and Switzerland, eliminates or reduces customs duties, including on imports of industrial, fish and agricultural products.

The deal was signed in the capital in the presence of Vietnam’s top leader To Lam and representatives of EFTA governments.

Vietnam said the agreement showed the parties’ resolve to “reinforce the rules-based trading system amid continued volatility in the global economy”, according to a government statement.

It was also expected to help Vietnam “diversify its import and export markets” and “integrate more deeply into global value chains”, the government said. Vietnam and EFTA concluded negotiations in July, more than a decade after the free trade talks officially began in 2012.

The parties relaunched negotiations in September last year, after they had stalled since 2018.

The agreement followed a global trade-disrupting tariff blitz by the United States under President Donald Trump which has left Vietnam with a hefty tax on its US exports amid ongoing negotiations with Washington.

Experts say the new deal reflected a shared initiative to diversify commercial ties and reduce reliance on major trading partners.

“As the US increasingly exerts trade pressure on European countries, the agreement is a joint effort to turn economic integration into greater strategic autonomy and to develop alternative commercial relationships rather than relying exclusively on their largest partners,” history and politics scholar Do Dinh Lam Khang told AFP.

For Vietnam, closer ties with EFTA economies could support its ambition to move into higher-value-added activities, Khang added.

The agreement covers trade in goods and services, intellectual property rights, trade remedies and sustainable development, among other areas, both parties say.

Bilateral trade between the EFTA and Vietnam last year was valued at 4.8 billion euros ($5.4 billion), according to the association.

Electrical and mechanical machinery, fish and pharmaceutical products were the EFTA nations’ top exports to Vietnam last year.

Machinery, footwear and apparel were manufacturing hub Vietnam’s major exports to the EFTA.

The association was created as a counterpart to the European Economic Community, precursor of the European Union which its four member states are close to but have not joined.