Senior officials in India and the United States have indicated long-running efforts to finalise a bilateral trade agreement have stalled, again.

Both nations had agreed to a framework for the deal in February which brought down to 18% from 50% the punitive tariff on ​most Indian goods imposed in August last year after a previous round of talks collapsed.

In the meantime, the Supreme Court invalidated US President ‌Donald Trump's use of emergency powers to impose sweeping tariffs globally, leading to a 10% baseline rate. But a final deal between two of the world's biggest economies remains elusive.

Why have trade talks trade talks hit a wall?

Trade talks have reached a "plateau" with little room for manoeuvre, Finance Minister Nirmala Sitharaman said earlier this week, following United States Trade Representative Jamieson Greer's comment ​that a deal is not "imminent."

Neither side has detailed reasons for the delay in finalising the deal.

But talks in the past months have met with ​complications, most recently a new US law that paves the way for up to 100% tariffs on Indian goods because of ⁠New Delhi's purchase of Russian oil. Those purchases have not been significantly reduced.

The potentially stiff levy goes against New Delhi's efforts to secure tariff terms better ​than peer economies, including Vietnam and China.

A deal has also been held back because Washington is yet to complete a Section 301 trade investigation on several nations ​over alleged excess industrial capacity. The probe is to evaluate whether such overproduction is hurting or undercutting American industries.

Unless this probe is completed, it is hard to tell what final tariff Indian goods will attract.

Overall, bilateral ties between India and the US have been rocky this past year, casting a shadow on efforts to stabilisetheir trade partnership.

Events including a US military ​attack on a ship off Oman that killed three Indian seafarers and India rejecting Trump's repeated claim of brokering a ceasefire with Pakistan have hurt relations.

What is at stalk?

The US is India's largest export market and exports have so far been resilient.

India's goods exports to the United States rose to $42.79 billion in April-August from $40.39 billion a ‌year earlier. ⁠In the fiscal year 2025/26, India enjoyed a nearly $34 billion trade surplus with the US.

India says many of its largest export categories to the US, including generic pharmaceuticals and smartphones, are not subject to the current 10% levy.

But analysts say that in the absence of a trade deal, India risks higher US tariffs from the ongoing trade probe and purchase of Russian oil, even if it could negotiate for waivers under the sanctions law.

Another increase in tariffs could ​hurt businesses, dent market sentiment and hurt ​the Indian currency, which is ⁠already trading close to record lows.

What more do the two sides want?

India is striving to protect politically sensitive sectors, particularly agriculture, while securing better tariff treatment for its exporters.

India has sought to keep dairy, poultry, rice, wheat and other farm ​products outside the scope of market-opening commitments. It wants greater certainty over US tariffs before making concessions.

The Trump administration ​wants India to ⁠cut Russian oil purchases, arguing Indian purchases of Russian crude help finance the war in Ukraine.

India says decisions on where to source fuel are driven by the energy needs of its 1.4-billion-strong population.

Russian crude became particularly important after Moscow's full-scale invasion of Ukraine because it was available at discounted prices. The war in the Middle East ⁠and resulting ​disruptions have sharpened the calculation over energy imports.

Are further talks planned?

US Secretary of State Marco Rubio ​is expected to visit India later this month, when two-way talks could make some progress.

Modi and Trump, who spoke by phone on September 30, are also expected to speak again soon to ​review progress. Modi is expected to visit the US in December for a G20 leaders' meet.

Global efforts to curb tax avoidance by multinational corporations are fundamentally altering the strategies countries use to attract foreign investment, moving the focus away from traditional tax havens toward broader economic fundamentals, according to a report released by the International Monetary Fund (IMF).

In an analytical insight following its latest (October 2026) global outlook, the IMF highlighted that international tax reforms, including the implementation of the global minimum corporate tax framework, are significantly diminishing the efficacy of low-tax regimes as a primary tool for courting global business.

In an analytical insight following its latest (October 2026) global outlook, the IMF highlighted that international tax reforms, including the implementation of the global minimum corporate tax framework, are significantly diminishing the efficacy of low-tax regimes as a primary tool for courting global business.

However, as international rules tighten to prevent profit shifting and base erosion, governments are increasingly forced to re-evaluate their investment promotion strategies, the organisation said.

Instead of competing in a "race to the bottom" on corporate tax rates, countries are now shifting their focus toward non-tax competitive advantages, it said.

These include strengthening physical and digital infrastructure, building a highly skilled labor force, ensuring regulatory predictability, and improving the overall ease of doing business.

The Washington-based lender pointed out that this structural shift offers both opportunities and challenges, particularly for developing and emerging economies.

While the erosion of tax-based competition levels the playing field, countries with severe infrastructure deficits or weak governance may face greater pressure to accelerate structural reforms to remain attractive to foreign direct investment (FDI).

The IMF urged policymakers globally to adapt to this changing landscape by aligning domestic tax administration with international standards while simultaneously prioritizing investments in productivity-enhancing public assets, human capital, and transparent legal frameworks to secure sustainable long-term economic growth.

India's Adani Power has signed a shareholders' agreement with Bhutan's state-owned Druk Green Power Corporation (DGPC) to develop the 770MW Chamkharchhu-I Hydroelectric Project in Bhutan.

The agreement was signed today (6 October), according to a statement from Adani Power.

The project marks the second major hydropower collaboration between the two companies, following the agreement for the 570MW Wangchhu Hydroelectric Project in September 2025.

It is also part of the broader 5,000MW hydropower development memorandum of understanding signed between the Adani Group and DGPC in May 2025.

The peaking run-of-river project will be located on the Chamkarchhu River in central Bhutan's Zhemgang district. Construction is expected to begin in the first half of 2027, with commissioning targeted within six years of groundbreaking.

The project will be developed through a 49:51 equity partnership, with Adani Power holding 49% and DGPC 51%.

It will be implemented under the Build, Own, Operate and Transfer (BOOT) model, with a 30-year concession from the date of commercial operation (COD).

The project is expected to help meet Bhutan's peak electricity demand during winter, while surplus power will be exported to India during the summer months.

Bhutan Prime Minister Lyonchen Dasho Tshering Tobgay, along with Finance Minister Lekey Dorji and Gem Tshering, of energy and natural resources, attended the signing ceremony.

Adani Power Managing Director Anil Sardana said surplus power from the project would be exported to India during the summer.

"Hydropower will play a pivotal role in accelerating South Asia's energy transition, and this project will contribute significantly to enhancing energy security, reducing carbon intensity, and advancing shared sustainability goals," Sardana added.

DGPC Managing Director Chhewang Rinzin said the project would strengthen Bhutan's energy security during winter while creating opportunities to optimise and export surplus clean energy to India.

Heavy reliance on rental and quick-rental power plants and capacity payment arrangements created significant fiscal liabilities for Bangladesh, the World Bank said yesterday.

Despite substantial gains in generation capacity, the structural foundation of the country’s energy sector has steadily eroded over the past decade due to weak governance and policy failures, the global donor said.

The energy sector sits at the heart of Bangladesh’s development ambitions and challenges.

Domestic gas production, long the backbone of Bangladesh’s energy system, has steadily declined as mature gas fields became depleted and exploration activities failed to keep pace with rising demand, the WB said in its Bangladesh Development Update.
“The resulting supply gap was increasingly filled by imported LNG, and Bangladesh, once fully self-sufficient in natural gas in 2017, now relies on imports to meet one-third of its total gas demand.”

Over the past decade, power generation capacity expanded rapidly through a growing contribution from private-sector producers, whose share of total electricity generation stood at 43 percent, the WB said.

Although installed generation capacity improved, the sector continues to face critical constraints in fuel and gas availability, as well as transmission and distribution bottlenecks that limit the effective utilisation of available capacity, the report said.
“These structural weaknesses have contributed to the current gas and power crisis. Bangladesh now relies heavily on LNG imports to offset declining domestic gas production, making the sector vulnerable not only to international price volatility and FX pressures, but also to disruptions at a small number of floating storage and regasification units (FSRUs).”

Recent technical failures and operational disruptions affecting FSRU facilities at Maheshkhali significantly reduced gas supply to the national grid, worsening an already sizable gap between demand and available supply, it said.

“The disruption exposed the systemic risk of over-reliance on a small number of domestic gas fields and critical import nodes.”

The economic consequences of the crisis have been significant.

Reduced gas supply disrupted production across major industrial zones in Bangladesh, with many factories operating below capacity or temporarily suspending operations due to inadequate gas pressure. Power generation has also been affected, leading to widespread load shedding and periodic electricity shortages that have disrupted households and business activity, forcing many to rely on expensive diesel generators. This has prompted emergency government measures such as mandatory early closures for shopping malls and retail centres to curb peak electricity demand.

Gas shortages have also affected households and transport, with many consumers facing cooking difficulties and long queues at compressed natural gas filling stations, the World Bank said.

“The cumulative effect has been lower industrial output, higher production costs, and increased uncertainty for private investors.”

The Bangladesh Securities and Exchange Commission (BSEC) has decided to speed up stock market surveillance by allowing its concerned units to investigate abnormal transactions and price movements without prior approval from the commission.
The concerned units would be able to take necessary action once they identify unusual transactions or price fluctuations, BSEC Chairman Masud Khan said yesterday, while speaking as the chief guest at a seminar organised to mark World Investor Week 2026.

The Bangladesh Association of Publicly Listed Companies (BAPLC) and the Bangladesh Merchant Bankers Association (BMBA) jointly organised the event at the Dhaka Stock Exchange (DSE) auditorium.

Masud said requiring approval from the commission through a meeting before initiating an investigation or inspection often causes delays in surveillance.

“That is why this decision has been taken,” he said.

He also said the number of companies listed on the capital market is expected to increase, making it impossible to monitor the entire market through manpower alone.

The commission will therefore establish a technology-driven surveillance system, he said.

Also Speaking at the event, Dhaka Stock Exchange (DSE) Chairman Mominul Islam said stricter surveillance was needed to prevent manipulation of small-cap and weak-fundamental companies.

He said stricter trading restrictions could be imposed on small-cap and weak-fundamental shares by placing them in separate categories.

This would give investors advance warning if unusual price movements occurred in a share, he added.

Mominul also identified the absence of registered financial analysts as a major weakness in the market.

Professional analysis on whether a company’s shares should be bought, sold or held would help investors make more informed decisions, he said.

It could also make it harder for manipulators to create confusion in the market, he added.

He said stock exchanges and the BSEC had traditionally focused their surveillance on brokers, investors and issuers involved in trading.

“The scope of that surveillance needs to be expanded further,” he said.

In addition to using artificial intelligence to detect manipulation and fraud, initiatives should be taken to identify people using AI to commit fraud through digital platforms and bring them under the law, Mominul said.

Prof Al-Amin, acting dean of the Faculty of Business Studies at Dhaka University, said “pump-and-dump” schemes were one of the major problems in the stock market.

In such schemes, the price of a share is artificially inflated rapidly to create investor interest before manipulators sell large volumes of shares and exit, he said.

If such manipulation is not detected and addressed quickly, it can harm the market, he said.

Institutional investors can also be drawn into such schemes, after which retail investors may suffer losses when large investors exit, Al-Amin said. Such manipulation can both erode investors’ capital and create liquidity problems in the market.

The professor also said in cases of unusual price surges, it is not difficult to identify who is buying the shares.

“Analysing transaction data makes it possible to understand who is buying the shares and how trading is taking place,” he said, adding that effective intervention and strong resolve from the regulator were essential.

Middle East crude exports recently climbed to their highest levels since the start of the Iran war as more Gulf producers resume transit through the Strait of Hormuz – despite the continued threat of Iranian attacks.

Yet oil prices remain stubbornly elevated, suggesting logistical problems are proving as disruptive as outright supply losses.
Crude flows through the embattled waterway reached 14.2 million barrels per day on a seven-day average on Sept. 26, nearly 80 percent of pre-war levels, according to analytics firm Kpler.

While volumes have declined since, they will likely be revised higher because ships often disable satellite tracking systems while traversing the strait and for several days thereafter.

Either way, the trend is clear: a lot more crude is getting through the strait.

So why is Brent still trading above $100 per barrel? In a word, logistics.

For decades, the global oil industry functioned as a finely tuned system designed to move enormous volumes of crude and fuels over long distances at the lowest possible cost.

The conflicts in the Middle East and Eastern Europe have fractured that model, as a combination of record-high tanker rates, soaring insurance costs and a severe shortage of refining capacity has created bottlenecks across the energy supply chain.

Those problems may take months, if not years, to unwind, leaving consumers facing persistently high energy bills – even if the crude supply squeeze continues to ease.

Iran’s blockade of the Strait of Hormuz following the onset of the war with the US and Israel on February 28 rapidly reshaped global oil flows.

Gulf producers diverted supplies through alternative routes, buyers sought barrels from more distant regions and governments released unprecedented volumes of oil from strategic reserves.

One of the biggest changes was that Saudi Arabia – previously the world’s largest oil exporter – diverted its exports through its East-West pipeline, which delivers crude to the Red Sea port of Yanbu.

At one point this year, 4 percent of global oil supplies were via this route.

However, after the pipeline came under attack by Iranian-backed Iraqi militias in early September, Saudi Arabia was forced to redirect exports back to the Gulf via Hormuz, which it discovered, could be more easily transited than previously thought.

Saudi exports through Hormuz averaged 3 million bpd in September, the highest level during the conflict, according to Kpler.

While Saudi Arabia’s crude exports through Hormuz in September were still only around half of pre-war volumes, the Kingdom’s exports could quickly near pre-war levels as the East-West pipeline gradually returns to normal operations.

Ironically, then, the attack on the East-West pipeline, which was intended to cripple Riyadh, may have instead weakened Tehran’s most powerful leverage – its purported control of the Strait – by demonstrating that large volumes can still transit Hormuz and other major export hubs despite continued attacks.

Yet the recovery remains fragile.

On the one hand, the increase in Gulf exports has helped reduce the global oil deficit.

Energy Aspects estimates the market now faces a shortfall of around 1.6 million bpd, down from roughly 4 million bpd during the peak disruption in May.

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Under normal circumstances, such an improvement in supply would exert significant downward pressure on prices.

Instead, Brent remains above $100 a barrel, more than 40 percent above pre-war levels.

Prices certainly reflect a substantial risk premium linked to the possibility of renewed escalation, as Washington and Tehran have still failed to reach any form of understanding over the future of Hormuz.

But geopolitics is only part of the story.

Freight and insurance costs, once a relatively minor component of the delivered price of oil, have become major price drivers.

This is partly due to the current shuttle system operating around the Gulf.

Multiple tankers are frequently required to transport crude though Hormuz to the Gulf of Oman, where cargoes are transferred to smaller vessels before heading to buyers in Asia.

This ties up significant numbers of very large crude carriers, reducing vessel availability elsewhere.

At the same time, buyers are increasingly sourcing crude from the Atlantic Basin and shipping it to Asia over longer routes, further tightening tanker supply.

The result has been a surge in key tanker rates to record highs.

Rates to transport crude from the Middle East to Asia aboard a very large crude carrier recently exceeded $1.2 million per day, up from roughly $30,000 a day in January, according to shipping broker Poten & Partners.

As a result, freight costs that once accounted for around 3 percent of the delivered price of a barrel now represent roughly 27 percent.

These costs are unlikely to normalise until trade flows return to something resembling their pre-war pattern.

Indeed, a further recovery in exports through Hormuz may initially worsen the situation by increasing demand for the elaborate shuttle networks now required to move crude safely through the region.

The loss of refining capacity in the Middle East and Russia, where Ukrainian drone attacks have crippled dozens of plants, has compounded the problem, particularly for diesel.

Diesel prices have surged to record highs, becoming a major political concern for U.S. President Donald Trump ahead of next month’s midterm elections, as diesel powers much of modern industry, agriculture and manufacturing.

The Group of Seven’s decision last week to release diesel from strategic stocks will likely provide only temporary relief as it does nothing to restore lost refining capacity.

What’s more, refiners are increasingly competing for the medium-sour crude grades that generate higher diesel yields.

Those barrels are concentrated in the Middle East and Russia, precisely the regions where supply disruptions remain most severe.

That dynamic is creating a feedback loop.

Tight refining capacity boosts diesel prices, which increases demand for diesel-rich crude grades, which in turn supports crude prices.

The result is that oil prices are no longer primarily a function of supply, but of the industry’s ability to transport and process crude – making it much more challenging to bring these prices down.

Around 2,200 small and medium-sized NGOs in Bangladesh could be particularly vulnerable as foreign funding declines, with grant-reliant organisations providing social services facing the greatest risk, according to a study by the Bangladesh Institute of Development Studies (BIDS).
Unlike NGOs with microcredit operations, these organisations have no lending income to fall back on when foreign funding declines.

The study says the growth of NGOs without a lending arm is significant because they have no lending surplus to cushion a contraction in foreign grants.
A BIDS survey found that two-thirds of grant-dependent organisations reported significant damage from funding cuts
A BIDS survey found that two-thirds of grant-dependent organisations reported significant damage from funding cuts, with their budgets falling by an average of 40 percent. Among NGOs with microcredit operations, the average decline was 12 percent.

The findings were presented at a seminar titled “Beyond Foreign Dependence: The Future of NGO Financing in Bangladesh” at BIDS yesterday.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury called for stronger institutional partnerships among the government, NGOs and the private sector to create sustainable financing for the sector.

He urged time-bound measures to help NGOs secure alternative funding as development assistance declines worldwide.

“We do not just want to listen; we want to provide an effective response,” he said, stressing the need for an integrated framework covering human development, local culture and private-sector participation.

He said NGOs play an important role in taking government services to grassroots communities and that their contribution in areas such as the creative economy should receive stronger institutional and policy support.

The BIDS study says the decline in foreign aid is likely to be gradual but lasting. Development assistance from wealthy countries fell 23 percent in real terms in 2025, the biggest annual decline on record.

The full impact has not yet reached Bangladesh as funds for previously approved projects are still being released. Around Tk 10,143 crore in foreign grants was released in 2025-26.

Foreign grant releases peaked at $955 million in 2018-19, fell 31 percent to $655 million, and recovered to $838 million in 2025-26. However, new project approvals fell from 2,061 in 2021-22 to 1,654 in 2025-26, indicating a weakening pipeline.

As funding shrinks, organisations are likely to cut staff and programmes first, potentially causing essential social services to disappear.

The study also warns that grant cuts could push NGOs towards “mission drift”, as they shift towards microcredit to generate income while schools, clinics and community programmes are cut.

It argues that the solution is not simply to find new donors. Instead, the government should contract NGOs to deliver services where they can do so more effectively.

NGOs can reach remote households and understand local needs, while the government can provide financing, regulation and infrastructure. Joint delivery could therefore reduce the cost of providing services.

The Public Procurement Rules 2025 allow NGOs to participate in public service delivery, but the provision is rarely used. The study recommends clear guidelines, an open list of qualified NGOs eligible for government procurement and CSR funds, dedicated financing windows through organisations such as the Palli Karma-Sahayak Foundation, clearer CSR rules, and legal recognition and tax benefits for social businesses.

However, alternative financing is unlikely to fully replace foreign grants. Bank CSR spending fell to Tk 345 crore in 2025, while social businesses may cover only 15-25 percent of an NGO’s budget. Innovative financing such as bonds is also difficult for smaller NGOs because it generally requires loan portfolios, collateral or strong balance sheets.

At the seminar, the minister also stressed developing local products, saying traditional crafts such as shital pati need modern design, value addition and better marketing to reach international markets.

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He also said projects should meet four conditions -- value for money, return on investment, employment or entrepreneurship creation, and environmental protection.

“No project will be approved if these four conditions are not met,” he said.

Among others, Zonayed Abdur Rahim Saki, state minister for planning; SM Shakil Akhter, secretary of the Planning Division; AK Enamul Haque, director general of BIDS; and Asif Saleh, executive director of BRAC, also addressed the seminar.

Oil prices fell on Tuesday as resilient Middle Eastern crude exports and a G7 emergency stockpile release eased supply concerns, though lingering security risks in the region capped further losses.

Brent crude futures were down 83 cents, or 0.8 percent, at $99.49 a barrel at around 0650 GMT, while US West Texas Intermediate crude futures fell $1, or 1.1 percent, to $88.43 a barrel.

"Shipping data shows regional crude exports actually exceeded pre-war levels on several days in late September. Alternative routes and logistical adjustments have somehow allowed producers to keep barrels moving despite the disruption around Hormuz," said Priyanka Sachdeva, head of market insights at Phillip Nova.

"However, calling this a full normalisation of supply doesn't look justified quite yet ... There have been renewed attacks on tankers around the Strait of Hormuz, and the number of incidents has increased in recent days. This means that while barrels are still moving, the cost, insurance, routing, and security risks of moving them remain elevated."

Gulf oil flows excluding Iran surged to over 81 percent of pre-war levels in September, data showed, led by a recovery in Saudi exports despite attacks on the kingdom's oil infrastructure and escalating Iranian attacks on regional shipping, while Iranian exports fell to zero due to a US blockade.

While the market remains nervous about potential supply disruptions from the region, Gulf oil producers continue to adapt to the region's situation, ING analysts said in a Tuesday note.

"Kuwait said that it is producing at 75 percent of pre-war levels, while the Saudis also cut the official selling price of their Arab Light into Asia for November loadings, a sign of an improving supply picture," they said.

Further easing supply concerns, G7 countries agreed on Friday to release 100 million barrels of diesel and crude from emergency reserves and pledged to refrain from energy export restrictions after pressure from US President Donald Trump.

The conflict between Saudi Arabia and Iran-backed Houthi forces in Yemen continued to fuel concerns over potential disruptions to supply from the region's largest oil exporter amid a stalemate in US-Iran talks.

Saudi-backed Yemeni government forces staged a lightning advance on Monday to retake the coast around the Bab el-Mandeb Strait up to the city of Mocha.

In response, the Houthis said they had attacked key locations in Saudi Arabia, including an Aramco refinery in Rabigh. The claims could not be immediately verified.

Inter-agency coordination must be ensured to facilitate the country's economic growth through the capital market, said the special assistant to the prime minister on investment and capital market affairs.

Tanvir Shahriar Ghani was speaking at a World Investor Week programme on Monday, organised by the Institute of Chartered Accountants of Bangladesh (ICAB) at its office in the capital.

He made the call against the backdrop of regulatory decisions affecting investors of listed companies.

Every organisation in Bangladesh works in isolation, said Mr Tanvir. Bangladesh Bank does its own thing while the securities regulator, the National Board of Revenue (NBR) and the Insurance Development and Regulatory Authority (IDRA) run their operations without bothering about the impacts on entities that fall under separate regulatory bodies.

Banks as listed companies are also regulated by the Bangladesh Securities and Exchange Commission (BSEC) apart from the central bank. If the primary regulator issues a circular without any coordination with the BSEC, shareholders may be affected.

"This concept of a non-integrated economy—where everyone acts as they please—doesn't work. In a $500 billion economy, it simply doesn't work," said Mr Tanvir, a former managing director of Goldman Sachs in London.

He said the central bank's exchange rate policy affected everyone, including exporters and importers. Similarly, the income tax authority needs to communicate with all businesses and other regulatory bodies before making a decision, to avert adverse impacts of taxation on the same financial ecosystem.

In his speech, BSEC Chairman Masud Khan stressed the need for good corporate governance, as it differentiates good companies from the rest.

He said his commission was moving toward making corporate governance rules, and that it had received a great deal of feedback on the draft rules.

The BSEC chief said the delayed IPO (initial public offering) process was one of the major reasons behind the drought in the pipeline of new scrips. Even the approval process for a bond issuance used to take one and a half years.

Apart from making efforts to further ease the public issue rules, the commission has cleared bonds worth Tk 35 billion in the last two months.

"And I can tell you one thing: There is absolutely no reason for an IPO to take more than three months—nowhere in the world," said Mr Khan.

Arif Khan, vice chairman of Shanta Asset Management, said different quarters wrongly blamed the securities regulator for the valuation of a company, although the valuation depended on the issuer company and investors.

Highlighting the substantial amounts of capital raised through IPOs in different countries, including India, during the last 30 months, when the Bangladesh capital market saw not a single IPO, Mr Arif Khan emphasised market-based valuation to enhance the depth of the market.

ICAB President Sabbir Ahmed moderated the programme, titled "Building Investor Confidence: the role of professional bodies in audit, reporting, governance, and risk management".

Japanese motor vehicle giant Toyota Tsusho Corporation will begin developing a hybrid electric vehicle (HEV) manufacturing industry in Bangladesh next year, with full-scale production expected to start by 2029, the Prime Minister's Office said.

The announcement came after a meeting between Prime Minister Tarique Rahman and a high-level Toyota Tsusho delegation led by Vice Chairman Ichiro Kashitani today (6 October).

According to the Prime Minister's Office, Toyota Bangladesh will begin work in 2027 to establish HEV production at an economic zone in Bangladesh under a "with Bangladesh, for Bangladesh" development philosophy. Full-scale production is expected to begin by 2029.
The visiting delegation also said Toyota Bangladesh is expanding its distribution network to all divisional-level locations to make the company's services and operations more accessible across the country.

Toyota Tsusho also expressed interest in contributing to human resource development by creating technical and vocational training opportunities for young people, improving skills and developing a workforce suited to future industries.

Prime Minister Tarique Rahman welcomed Toyota's interest in expanding its investment and operations, saying the government was working to ensure a stable, competitive and investment-friendly environment for local and foreign investors.

He said the government was committed to providing foreign investors with necessary policy support, infrastructure and other facilities.

The prime minister also highlighted Bangladesh's potential in waste-to-energy generation and renewable energy, and pledged government support if Toyota Tsusho is interested in investing in these sectors.

Commerce Minister Khandaker Abdul Muktadir, Prime Minister's Economic and Planning Adviser Rashed Al Mahmud Titumir, Foreign Affairs State Minister Humayun Kobir, Science and Technology Adviser Rehan Asif Asad, and Prime Minister's Special Assistant for Foreign Employment in the Asia-Pacific region Md Shakirul Islam Khan, among others, attended the meeting.

Toyota Tsusho Mobility Division CEO Shigeru Harada, Toyota Bangladesh Ltd President Premmit Singh and other senior company officials were also present.

Bangladesh's economy has yet to deliver the rebound expected after the return of political stability, the World Bank warned in its latest "Bangladesh Development Update", sharply downgrading the country's growth forecast for the current fiscal year.

The global lender slashed Bangladesh's FY27 real GDP growth projection by 1.2 percentage points to 3.4%, down from 4.6% estimated in April. The new forecast falls below the 3.45% growth recorded during the FY20 pandemic shock and lags behind the government's 6.5% target.

The update shows Bangladesh's projected growth is the lowest in South Asia after Afghanistan. By contrast, South Asia's economy is forecasted to grow to 6.7% in 2027.

Asked for a reaction to the report yesterday, Finance Minister Amir Khosru Mahmud Chowdhury offered a brief response: "Wait and see."

Economic activity and investment slowed during the interim government's 18-month tenure due to political uncertainty and law-and-order disruptions. While businesses expected a turnaround following the return of an elected government, the World Bank noted that structural bottlenecks continue to stall recovery about eight months into the new administration.

The update said the downgrade reflects "a more protracted drag from energy shortages, banking sector weakness, subdued credit growth and tighter fiscal constraints than previously anticipated".

Zahid Hussain, former lead economist of the World Bank's Dhaka office, said Bangladesh's economic slowdown is the result of persistent weaknesses in several key drivers of growth.

He added that two priorities should guide the response: preventing existing problems from worsening and gradually addressing those that have already emerged.

Fahmida Khatun, distinguished fellow at the CPD, said weak investment, high business costs, uncertainty, and persistent banking-sector weaknesses are weighing on economic growth.

In response to the issues, she called for continued reforms in the banking sector.

Export growth to remain weak

The World Bank also warned that export growth is expected to remain weak.

"Exports of readymade garments will be slowed in the short term by weak demand in the EU, and in the longer term by increased competition for market share," the report said.

Last month, the Asian Development Bank also cut its FY27 growth forecast for Bangladesh to 4%, from 4.5% projected in July and 4.7% in April. Both the World Bank and ADB forecasts are well below the government's 6.5% GDP growth target for the current fiscal year.

In its new update, the World Bank estimated that Bangladesh's GDP growth slowed to 3.4% in the previous FY26 fiscal year, marking the third consecutive year of deceleration.

'The time to act is now'

Bangladesh's economic growth has slowed since 2023 amid persistent structural constraints and global uncertainty, the World Bank said. Longstanding financial-sector vulnerabilities, weak revenue mobilisation, energy bottlenecks and declining public investment have eroded the economy's resilience and constrained its growth potential.

Jean Pesme, World Bank division director for Bangladesh and Bhutan, said to avert economic downturn and return to an inclusive growth path, fast and bold reforms are needed in the banking sector, domestic revenue mobilisation, and energy sector.

"The country needs to respond with urgency and speed up the reforms essential for protecting the poor and creating more and better jobs. The time to act is now," he said.

Pesme identified the banking sector as a major risk, with the non-performing loan ratio rising to 32.2% in 2026 from around 20% in December 2024.

Weak bank capitalisation is another concern, he said, calling for asset quality reviews to be completed and viable banks to be restructured and recapitalised at fair value.

Private investment has also weakened significantly, with private-sector credit falling to a nearly 30-year low. The weak economic environment and uncertainty are discouraging businesses from investing and expanding, according to Pesme.

Pesme also highlighted weak revenue mobilisation, calling for modernising and digitalising the tax system, broadening the tax base and improving tax-expenditure management.

On energy, he urged stronger transmission and distribution systems, transparent pricing, better governance and greater use of renewable energy.

2.1m more poor in FY26

Poverty and inequality increased in Bangladesh in FY26 as a prolonged economic slowdown, weak labour demand and persistent inflation eroded household welfare, said the report.

Poverty at the $3-a-day international poverty line rose an estimated 1.1 percentage points to 10.1% in FY26, leaving about 2.1 million more people in poverty than in FY25.

National poverty also rose for the fourth year, reaching 22.5% in 2026, up from 18.7% in 2022. It is projected to rise further to 22.8% in FY27 before edging down to 22.4% in FY28.

The Gini index, a measure of income inequality, increased by 0.9 points to 34.9 in FY26, leaving it 4 points above its 2022 level. The deterioration is expected to continue in the near term. Inequality is projected to widen, with the Gini index expected to reach 35.6 by FY28.

The deterioration is expected to continue, with the index projected to reach 35.6 by FY28.

Targeted support could lift 2.85m out of poverty

Weak labour demand and persistent inflation have reduced household incomes and, leaving many families vulnerable to future economic shocks, the World Bank said.

Although Bangladesh spends about 3.5% of GDP annually on subsidies and social protection, nearly half of the country's poorest households receive no safety-net support, it said.

Effective deployment of the Family Card alone could protect an estimated 1.58 million people from poverty. Combining it with improved targeting tools and consolidating cash and food assistance could lift an additional 2.85 million people out of poverty, the report added.

Jean Pesme called for a gradual shift from broad-based subsidies towards targeted support to better protect vulnerable households.

Inflation to stay high, wage growth negative

Inflation in Bangladesh is projected to remain elevated at 8.6% in FY27 before gradually moderating over the medium term, according to the World Bank.

The pace of moderation is expected to remain slow in the short term, weighed down by high domestic energy prices, persistent supply-side constraints and a less restrictive monetary policy stance, the lender said.

Lower global commodity prices, a stable exchange rate and favourable base effects could support a gradual decline in inflation over the medium term.

Maintaining prudent monetary policy and avoiding inflationary financing to support the banking sector will be critical to keeping inflation under control.

Real wage growth among low-paid workers remained negative in FY26. Non-food inflation above 9% and higher energy and utility costs continued to erode workers' purchasing power.

What economists recommend

Zahid Hussain said banking, energy, trade and logistics, ports, transport and law and order are among the sectors currently holding back economic activity.

However, the energy crisis and high non-performing loans are not new problems, he said. "Therefore, the first task is to stop further deterioration. The banking system, energy supply and other basic business conditions must improve to revive investment."

The economist said weak growth is limiting job creation, which in turn is constraining wage and income growth. Prolonged high inflation is further eroding people's purchasing power.

"Growth is weak, employment is limited, incomes are not rising and inflation remains high. This combination reduces people's real purchasing power," he said.

Reducing poverty requires more than social assistance, he said. It needs addressing fundamental weaknesses in growth, investment, employment, banking and energy supply.

Fahmida Khatun said, "Private-sector investment remains weak as the cost of doing business is high and global geopolitical tensions have increased uncertainty," she said.

Slow implementation of public investment and weaker export demand are also holding back the economy, while prolonged low growth has contributed to persistent poverty, she said.

"Prolonged inflation has eroded people's purchasing power, particularly among low-income households, while wage growth has not been sufficient to offset rising prices," Fahmida said.

To address the issues, she said viable banks should have restructuring plans, professional management and clear deadlines, while non-viable banks should undergo orderly resolution to protect depositors and minimise the cost to taxpayers.

"Loan recovery must improve, and large defaulters shouldn't receive special treatment. Stronger governance, transparent reporting, and accountability for lending decisions are also essential," added the economist.

2nd lowest growth in South Asia

The World Bank, in its "South Asia Economic Update", said the region's growth has proved more resilient than expected despite elevated energy prices.

India is forecast to lead the region, with growth of more than 7% in FY27, supported by robust domestic demand and strong exports despite global headwinds.

Bhutan is projected to be the region's second-fastest-growing economy, with growth of 6.7%. Sri Lanka's GDP is projected to grow 4.2%, although its recovery remains uneven.

Maldives' economy is expected to grow 2.2% in 2026 as tourism proves more resilient than expected. Its 2027 growth forecast, however, has been cut by 3.1 percentage points to 4.1%.

Pakistan's growth is projected to remain broadly stable at 3.8% in FY27, as elevated commodity and energy prices weigh on services and industry.

Nepal's growth is projected to slow to 3.7%, as flood damage to energy infrastructure weighs on industry, while disruptions to trade, transport and tourism constrain services.

Afghanistan, the region's slowest-growing economy, is projected to grow 3.3% in FY27.

Bangladesh could unlock an import-substitution opportunity worth nearly $100 million by properly processing and recycling tannery solid waste (TSW) into value-added commercial materials, according to a recent policy paper by the Business Initiative Leading Development (BUILD).

The country currently imports around $95 million worth of products that could potentially be produced domestically from underutilised tannery waste, the paper said.

Presenting the keynote at a policy dialogue in the capital today (5 October), BUILD CEO Ferdaus Ara Begum said the Savar Tannery Industrial Estate generates approximately 84,000 tonnes of TSW annually, of which 60-70% consists of chrome-free beam house trimmings and fleshing that could be processed into gelatin, collagen, protein meal and tallow.

Referring to the study, Ferdaus Ara said recovered tannery waste should be recognised as a secondary industrial raw material. Commercial bio refineries and SME-level tallow extraction units could potentially substitute around $100 million worth of annual imports of gelatin, glue, shoe soles and poultry feed additives, she said.

Speaking as the chief guest at the "Waste into Resource: Tannery Solid Waste (TSW) Byproduct Entrepreneurship Model" dialogue, jointly organised by BUILD and The Asia Foundation at a city hotel, Ministry of Industries Additional Secretary Smriti Karmakar said tannery waste should not be viewed merely as an environmental or river-pollution concern but as an economic resource that can generate new products and businesses through technology, investment and entrepreneurship.

"We should not see tannery waste only as a problem or as a waste management issue. We can look at how, through technology, investment and entrepreneurship, it can be used as a raw material for new products and businesses," she said.

Abul Kashem Khan, chairperson of BUILD, said effective TSW management could diversify exports, attract foreign direct investment and generate revenue. Foreign investors are committing capital to byproduct projects but face severe raw-material shortages, underscoring the need for stronger coordination among government agencies, development partners and the private sector.

In the panel discussion, moderated by Sharifa Khan, former alternate executive director of the World Bank and former senior secretary of the Economic Relations Division, Mohammed Abu Eusuf, professor at Dhaka University and executive director of RAPID, called for a dedicated TSW policy covering coordination, compliance, financing and better-functioning slaughter houses.

Mizanur Rahaman, general secretary of the Bangladesh Tanners Association, proposed dedicated processing facilities and said no factory in the Savar Tannery Industrial Estate is currently Leather Working Group (LWG) certified.

Sajjad Hossain Khan of The Asia Foundation stressed modern technology, formalising informal waste aggregators and stronger governance to develop a circular value chain.

The Bangladesh Securities and Exchange Commission (BSEC) has urged retail investors to assess a mutual fund's net asset value (NAV) per unit and overall financial health before investing, warning against buying units at prices significantly above their underlying asset values.

In a press release issued today (5 October), the capital market regulator said units of some mutual funds are trading on the bourse at prices significantly higher than their NAV per unit.

Describing the gap as an unusual price disparity, the commission said NAV per unit is a key indicator of a fund's intrinsic value. It is calculated by dividing the fund's total net assets by its total outstanding units.

The regulator also cautioned that in the event of a mutual fund liquidation, unit holders have no scope to receive payout beyond the fund's actual net asset value, making purchases at inflated market prices inherently risky.

In light of these developments, the BSEC advised general investors to verify the latest published NAV per unit and other relevant financial disclosures before investing.

The commission strongly cautioned investors against making purchase decisions based solely on price surges, market rumours, social media speculation or persuasive advice from individuals or groups.

Reiterating its commitment to investor protection, the securities regulator urged market participants to make informed decisions by assessing a fund's actual asset value, financial health, tenure, portfolio composition and published regulatory reports.

Last June, my college alumnus, currently a Commissioner of Taxes, came to see me on a social call. During our brief chat, I learnt that he is in charge of a greater district, while two other districts are also under his command in the same zone. I innocently asked him about tax collection. His answer was frustrating and surprising. He said that in 92 percent of files and tax returns, there were no tax payments, while only 8 percent paid nominal taxes.

I occasionally visit markets and shopping malls and, while talking to shop owners as a potential customer, ask how they pay taxes. Most say they are not fully aware of the process, but a middleman or consultant handles it as a package deal, as has been done for years. They do not know how much of the money goes towards tax, incidental expenses or the consultant’s fee. Other small traders and businesses follow similar practices, except some chain shops and businesses managed centrally.
Small businesses should gradually be encouraged to avoid cash transactions and become tax compliant. Otherwise, our goal of raising the tax-to-GDP ratio to a reasonable level will remain unfulfilled.

SMEs formally contribute 25 percent to 35 percent of GDP and informally much more in Bangladesh. The expansion of the trade sector is visible in cities and upcountry areas. The financial condition of people outside the tax net has improved considerably. Rents, salaries and utility bills are high, while the decoration of shops and outlets, particularly in malls and shopping arcades, is often luxurious and attractive. Yet tax collection from these areas remains low because of widespread tax evasion.

Inadequate records of business transactions and financial statements, a lack of transparency, and collusion between tax inspectors, assessing officers and businessmen have kept these areas out of focus. As a result, little tax is collected from them. Similar situations exist in districts and upcountry areas. Usually, a nominal lump sum without any clear basis, plus a bribe disguised as incidental expenses, is the normal way of settling tax.

There is apparently no research on how these growing businesses and SMEs pay taxes or the level of tax evasion. The focus is instead on large businesses, foreign companies and multinationals that maintain proper books and records, have their financial statements audited by credible chartered accountants, and are often pressured to pay additional tax.

SMEs and small traders pay high rents and utility bills and, in some cases, salaries and large rent advances. Tax withholding does not apply to them, and landlords also evade tax in many cases. Although rent can be collected through a dedicated bank account using account-payee cheques, most is paid in cash, keeping it outside the tax net or resulting in only nominal tax payments.

In a society where tax evasion has become common practice, it is difficult to bring people into the tax net overnight. To my surprise, even many affluent people tacitly support this practice. Unless transactions are fully digitalised, SMEs and small traders are unlikely to declare sales or turnover correctly. Given the peculiarities of Bangladesh and people’s apathy towards paying taxes, most transactions are still conducted in cash. In these circumstances, I recommend that SMEs and traders be taxed based on a percentage of rent, salaries and utilities as a basis for minimum tax. This would vary from area to area and could help determine the appropriate tax level. Those who regularly pay reasonable taxes and maintain reliable financial records should be given due credit and kept outside this proposed system.

SMEs and small traders should also gradually be encouraged to avoid cash transactions and become tax compliant. Otherwise, our goal of raising the tax-to-GDP ratio to a reasonable level will remain unfulfilled.

Bangladesh’s energy planning has created an uncomfortable contradiction. A country struggling to afford its current LNG (liquefied natural gas) imports is planning to more than double its import capacity within the next two years. The question is not whether Bangladesh needs LNG, but whether it can afford such a massive expansion.

Is the government creating another LNG trap, similar to the one in the power sector? People are already bearing the costs of capacity payments, loan interest and fuel imports, while high energy prices are pushing up the cost of living. Yet households and industries continue to face unreliable energy supplies.

With mounting debt and growing subsidy requirements for state-owned Petrobangla and the Power Development Board (PDB), the government must carefully assess the economic costs and benefits of expanding LNG infrastructure before committing public resources to another long-term financial burden.

One-third of the national budget could go towards LNG imports

Bangladesh currently operates two floating LNG terminals with a combined capacity of 1,100 million cubic feet per day (mmcfd). The government plans to add three more by 2029, raising the total capacity to 2,700 mmcfd to address gas shortages and ensure supplies to industries.

The rationale is understandable. Domestic gas reserves are declining, industries are facing shortages, and gas-fired power plants cannot operate at full capacity. But the ability to import gas does not necessarily mean the country can afford it.

Following the Iran war, Bangladesh had to purchase LNG from the spot market at around $29-30 per million British thermal units (MMBtu), reflecting the volatility seen after Russia’s invasion of Ukraine in 2022. These crises demonstrate how geopolitical tensions can disrupt global energy markets and make future prices extremely difficult to predict.

If Bangladesh operates LNG import infrastructure with a combined capacity of 2,700 mmcfd, the annual import bill could reach around $29 billion at an average price of $28 per MMBtu. At $30, the bill could approach $30 billion.

Although Bloomberg’s Global LNG Market Outlook 2030, published in September 2025, projected average global prices below $10 per MMBtu in 2026 and potentially below $5 by 2030, such forecasts cannot account for every geopolitical crisis or supply disruption. Indeed, the report was published before the Iran war and the closure of the Strait of Hormuz.

Bangladesh’s national budget for FY2026-27 stands at Tk 9.38 trillion. In a future wartime scenario at $28 per MMBtu, importing LNG equivalent to the planned capacity could cost more than Tk 350,000 crore annually at the current exchange rate—over one-third of the national budget. Any further depreciation of the taka would increase the burden.

Limited foreign currency earnings, massive spending

According to Bangladesh Bank, the country earns around $80 billion in foreign currency annually. Earnings stood at $83.5 billion in FY2025-26. An annual LNG import bill of $30 billion would therefore place enormous pressure on foreign exchange reserves.

Bangladesh must also spend billions of dollars importing food, fertiliser, edible oil, industrial raw materials, machinery, pharmaceutical ingredients and other forms of energy. The country already spends around $12 billion annually on oil, gas and coal imports, while its trade deficit exceeded $27 billion in FY2025-26.

The country’s foreign currency earnings remain heavily dependent on readymade garment exports and remittances, both of which are vulnerable to global economic uncertainty. Although increased energy supplies could support industrial growth and exports, high energy costs could undermine the competitiveness of local industries.

Many factories are already struggling with rising production costs and cannot afford significantly higher gas prices if subsidies are withdrawn. Without diversifying its export base and moving towards higher-value products, Bangladesh cannot assume that expensive LNG imports will generate enough additional foreign currency to cover their costs.

Lower prices will not eliminate the problem

LNG prices will not remain at $28-30 per MMBtu indefinitely. However, even if prices fall to $10, importing LNG equivalent to 2,700 mmcfd would still cost Bangladesh more than $10 billion annually.

For an economy with a narrow export base, this would remain a substantial burden, competing with essential imports, debt repayments and investment in other sectors. LNG at $28 per MMBtu would be prohibitively expensive, but even at $10, it would not be cheap.

The hidden costs of LNG infrastructure

The financial burden does not end with purchasing LNG. Individual terminals can cost between Tk 5,000 crore and Tk 11,000 crore to construct, depending on their capacity.

Bangladesh’s first LNG terminal, built by US-based Excelerate Energy in 2016-17, cost around $180 million, or Tk 2,214 crore at the time. Petrobangla currently pays Tk 2.9 crore a day in capacity charges for the terminal, amounting to approximately Tk 1,064 crore annually. Over its 15-year contract, these payments will total around Tk 16,000 crore.

Using this terminal as a reference, three additional terminals could cost at least Tk 10,000 crore each on average. Their capacity payments could reach around Tk 50,000 crore. Including the costs associated with all five terminals, the total could rise to approximately Tk 75,000 crore, or $7 billion.

There are also concerns about the proposed rental charge for a third LNG terminal, approved for a Chinese company. The proposed daily charge of $342,000, equivalent to Tk 4.2 crore, is around 40 percent higher than the rates for existing terminals. If approved without changes, it would further increase capacity-payment obligations.

The risk of stranded assets

Bangladesh could complete these terminals but later struggle to import sufficient LNG because of high prices, foreign currency shortages or global market volatility. Yet rental payments, loans and interest obligations would continue regardless of how much gas the terminals handle.

The power sector offers a clear warning. Many power plants remain idle, but Bangladesh pays more than Tk 25,000 crore annually on average in capacity charges. In 2025 alone, these payments exceeded Tk 42,000 crore.

Bangladesh’s public debt exceeded Tk 22 lakh crore in early 2026 and is increasing by around Tk 1.5 lakh crore annually. Rising interest payments are adding further pressure. Expensive energy imports and infrastructure financed through borrowing could create a cycle in which efforts to secure energy undermine broader economic security.

The government is simultaneously planning three new LNG terminals, expanding domestic gas exploration through 150 wells and pursuing a target of 10,000 MW of solar power by 2030. If domestic gas exploration and renewable energy programmes succeed, expensive LNG infrastructure could be underused or become stranded assets.

A report by Zurich-based SolAbility, Global LNG Market Outlook 2026–2035, notes that several countries, including Pakistan, Vietnam and the Philippines, are cancelling LNG projects as they expand renewable energy. One key reason is the high cost of LNG-based electricity, estimated at $80–120 per megawatt-hour (MWh), compared with just $30–40 per MWh for solar power combined with battery storage.

Before approving additional terminals, the government should publish transparent economic assessments based on LNG prices of $10, $20 and $30 per MMBtu. These should detail annual foreign currency requirements, funding sources and capacity charges, including payments for underutilised infrastructure.

The government must also compare LNG investments with domestic gas exploration, rehabilitation of ageing gas wells, improvements in transmission infrastructure, industrial energy efficiency, renewable electricity and grid modernisation.

Has the energy strategy really changed?

In 2023, the previous government finalised the Integrated Energy and Power Master Plan (IEPMP) with Japanese assistance. The plan opened the way for LNG imports of up to 5,000 mmcfd by 2040 and proposed $179 billion in energy infrastructure investments, including LNG terminals.

Some experts have raised concerns about the influence of Japan’s commercial interests, given its position as a major LNG re-exporter and its investments in LNG trading infrastructure and gas-fired power plants across Asia.

Although the IEPMP lost relevance following the departure of the Awami League government, questions remain about how much Bangladesh’s fundamental energy strategy has changed. The current administration also appears interested in pursuing several similar initiatives.

Bangladesh does need LNG in the short term as domestic gas production declines and industries face shortages. But LNG cannot be a permanent solution to the country’s energy crisis.

If Bangladesh is struggling to secure 1,100 mmcfd today, how will it manage to secure 2,700 mmcfd within the next two years—and, more importantly, how will it afford the bill?

The writer works for an international development organisation and is an independent energy journalist.

The Ministry of Finance has lifted a 16-year-old restriction on direct listing, allowing multinational, state-owned and high-value private companies to list on local stock exchanges without issuing an initial public offering (IPO).

According to a ministry order issued today (5 October), the government revoked a circular issued on 1 February 2010 that prohibited direct listing of state-owned, private and foreign companies.

The decision came after the Bangladesh Securities and Exchange Commission (BSEC) recommended on 19 August 2026 that the restriction be withdrawn to support the sustainable development of the capital market.

The move removes a long-standing regulatory barrier to direct listing by private-sector companies, potentially expanding the range of companies eligible to raise capital through the stock exchanges.

In December 2016, the BSEC had instructed the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) to suspend provisions allowing the direct listing of unlisted securities of non-governmental companies.

As a result, the direct-listing mechanism became largely limited to state-owned enterprises.

The restriction followed controversy over earlier direct listings, particularly sharp share-price volatility and substantial capital gains made by existing promoters after the companies were listed.

The latest decision is expected to reopen the direct-listing route for eligible private and foreign companies, subject to applicable listing and regulatory requirements.

Under the new regulatory push, Bangladesh is set to revive direct listing for large, established enterprises after a 16-year hiatus. In early September 2026, the BSEC approved draft rules titled the "Bangladesh Securities and Exchange Commission (Direct Listing of Securities by Stock Exchange) Rules, 2026" for public consultation.

Under the proposed framework, qualified entities will be permitted to list their shares on the main board by offloading 10% to 20% of existing shareholders' holdings on the secondary market, rather than raising new capital through conventional IPOs. This alternative entry pathway aims to entice top-tier corporate names to go public while offering institutional and founding shareholders a structured exit mechanism.

However, the regulator has emphasised that the facility will remain tightly guarded to prevent past abuses, restricting eligibility strictly to large, strategically important firms meeting stringent thresholds. Eligible entities include government-owned or majority-held companies, firms where the government holds at least 10% paid-up capital, and foreign-owned or multinational corporations.

Additionally, telecommunications and ICT infrastructure providers approved by the BTRC with a minimum paid-up capital of Tk300 crore will qualify. Scheduled banks, non-bank financial institutions, and insurance companies boasting a minimum three-year operational track record can also seek direct listing.

Furthermore, general private corporations holding annual turnover or total assets of at least Tk500 crore will be eligible, subject to satisfying exchange and central depository compliance rules.

Direct listing was first introduced in Bangladesh under a 2006 framework, through which major state-owned power and energy giants including DESCO, Power Grid Company of Bangladesh, Jamuna Oil, Meghna Petroleum, and Titas Gas successfully tapped the market. Private firms like ACI Formulations, Shinepukur Ceramics, and Navana CNG also entered the bourse via direct listing during that era.

However, aggressive price discovery and trading anomalies, most notably surrounding Navana CNG's listing in 2009, triggered regulatory investigations, prompting authorities to impose severe restrictions in 2010. Controversies resurfaced in 2020 over Best Holdings' attempted direct listing on the DSE.

By lifting the 2010 restriction and replacing it with the comprehensive 2026 framework, regulators aim to replace old loopholes with clear eligibility standards, offering blue-chip multinationals and large domestic conglomerates a fast-track route to the capital market.

Presuming that risk of over-indebtedness of Bangladesh economy rising gradually, the French Development Agency (AFD) starts assessing the country's sovereign risk and economic and financial vulnerabilities, officials said, pending its post-graduation assistance.

The development-financing agency of the European Union country says the risk of over-indebtedness in Bangladesh is increasing due mainly to higher debt servicing and dependence on domestic bank financing.

Also, the agency wants to assess the performance of the growth trajectory of the economy.

A monitoring mission of the AFD began Monday the four-day assessment in Dhaka with meetings with relevant top government officials, including Finance Division, Financial Institutions Division, Power Division, and Ministry of Environment, Forestry, and Climate Change.

The AFD team on the day had meetings with top officials from the Macroeconomic wing, SOE wing, Government Debt and Financial Asset wing, Management wing, and Planning, Development and Reform wing of the Finance Division.

A senior Finance Division official says the AFD conducts country-and sovereign-risk assessment of Bangladesh every four years.

The last country risk-analysis mission to Bangladesh took place in July 2021.

"The latest country assessment aims to find how the agency can provide financial support more effectively as the LDC graduation will bring significant changes in terms trade and economy of Bangladesh," he said.

Since 2012, the AFD has made commitment of 2.0 billion euros in loans and 47.2 million euros in grants for Bangladesh. Of the released amount, 41 per cent was invested in the water and sanitation sector while 22 per cent in power and energy sector.

The AFD predicts Bangladesh's public finance-deficit is fuelling the rise in the public-debt ratio, which could exceed 45 per cent of gross domestic product (GDP) in FY'28.

The domestic share, 54 per cent of total debt in FY'25, is largely financed by the banking system, which constitutes a major point of vulnerability given the ongoing banking crisis, it says, adding that interest expense exceeded 28 per cent of revenue in FY25, compared to 18.6 per cent on average in the 2010s.

The International Monetary Fund (IMF) now considers the risk of public over-indebtedness to be moderate, compared to previously rated low. "The risk of over-indebtedness is increasing, linked to higher debt service and dependence on domestic bank financing."

The AFD is conducting the assessment based on the analysis of the five pillars of the method developed by the Department of Public Economic and Political Diagnostics of AFD focusing social situation, growth, public finance, external position, and banking sector.

During the spot appraisal, the mission will gather information on the social background and analyse the progress achieved in poverty-and inequality reduction, review the growth performance in order to assess the prospects for growth, and focus on the budget balance and the capacity to finance the necessary infrastructure and the level and structure of public indebtedness.

Moreover, the mission will analyse the structure of the balance of payments and the financing means, and assess the quality of the banking sector and its ability to provide sufficient credit to meet the development needs of the private sector.

The AFD says Bangladesh's economy has slowed sharply during the last three years due to inflation, the fragility of the banking sector, and political uncertainties. The economic model, focused on textiles and migrant transfers, shows structural limits, including a lack of diversification.

The country is also highly vulnerable and exposed to climate change-induced risks with significant economic consequences.

"With government revenue averaging only 8.6 per cent of GDP in the 2010 decade, Bangladesh's fiscal burden is among the lowest in the world and limits fiscal space," it has said.

Taiwan’s Foxconn, the world’s largest contract electronics maker, reported on Monday a 47 percent jump in third-quarter revenue year-on-year that beat market estimates, fuelled by strong AI-related demand.

Revenue for the July-September quarter was T$3.03 trillion ($95.4 billion), well above an LSEG SmartEstimate of T$2.83 trillion that gives greater weight to forecasts from analysts who are more consistently accurate.

Strong AI demand led to robust revenue growth for its cloud and networking products division, while smart consumer electronics, which include iPhones, posted significant growth, the company said.

September revenue alone rose 38 percent year-on-year to T$1.16 trillion, a record for a single month and the first time it has surpassed T$1 trillion on a monthly basis.

AI-related operations are expected to continue growing in the fourth quarter, the company said.

Together with the traditional peak season for electronics products in the second half of the year, this should support overall performance in line with current market expectations, it said. But it added that it remains necessary to monitor the impact of a volatile global political and economic environment.

Foxconn, formally called Hon Hai Precision Industry, does not provide numerical forecasts. It will report full third-quarter earnings on November 12.

The company’s shares have gained 10 percent this year, underperforming a 72 percent rise for the Taiwan market. The stock closed up 1.2 percent on Monday ahead of the revenue data release. The benchmark index ended the day 2.6 percent higher.

Banks have sharply cut spending on corporate social responsibility (CSR) as financial difficulties have reduced the capacity of many lenders to contribute, while some have been simply unable to make any contribution amid losses.

In the January-June period of this year, the banking sector spent Tk 119 crore on CSR, down from Tk 615 crore in the same period of 2022, according to Bangladesh Bank (BB) data.
CSR spending by banks stood at Tk 571 crore in the first half of 2023, Tk 309 crore in 2024 and Tk 150 crore in the first half of 2025, according to BB data.

Mirza Elias Uddin Ahmed, managing director and CEO of Jamuna Bank, said many banks have seen their profits decline, while a good number of lenders have incurred losses. This may have contributed to the fall in CSR spending.

Elias said the banking sector is not performing well overall, and CSR spending has declined as a result.

In 2025, the banking sector recorded a net loss of Tk 136,000 crore, as a surge in bad loans wiped out income across much of the industry, according to a BB report.

Bankers attributed the downturn to a sharp rise in non-performing loans (NPLs), driven by years of lending irregularities, financial fraud and political interference in the sector.

A central bank official said many irregularities have taken place in CSR spending during the previous Awami League government.

“Money was withdrawn from this sector and disbursed at the direction of politically influential quarters, including the Prime Minister’s Relief and Welfare Fund,” he said. “Such practices have now declined. Besides, the financial condition of banks is also not good, which is why CSR spending has fallen.”

BB data showed that banks’ CSR spending in the January-June period of this year is also nearly 40 percent lower than in the previous six months. Banks spent Tk 197.85 crore on CSR in the July-December period of 2025.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, told The Daily Star that the capacity of many banks to spend on CSR has declined, while some are unable to make such expenditures because of losses.

“Besides, CSR spending was previously largely directed towards the Prime Minister’s Relief Fund, and initiatives centred around the Prime Minister’s Office, which is now non-existent,” added Mahbubur.

In the first half of this year, the health sector received Tk 34.66 crore, or 29.11 percent, of total CSR spending, while education received Tk 24.13 crore, or 20.27 percent. Environment and climate change mitigation and adaptation received Tk 11.72 crore, or 9.84 percent.

The remaining Tk 48.53 crore, or 40.77 percent, went to “other” areas, led by disaster management, which received Tk 34.34 crore, or 28.85 percent. This included contributions to the Prime Minister’s Relief Fund and winter blanket distribution.

Compared with the previous six months, spending on education fell 45.74 percent, health 39.74 percent and environment 59.99 percent, while spending on “other” areas rose 3.70 percent.

Japan wants Bangladesh to remove unnecessary regulatory hurdles, diversify its industrial base and create more room for foreign investment as the two countries prepare to deepen economic ties under their newly signed Economic Partnership Agreement (EPA).

Japanese Ambassador to Bangladesh Saida Shinichi made the call at the 21st annual general meeting (AGM) of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) at Lakeshore Hotel in Dhaka on Sunday.

Saida said Bangladesh’s growing focus on attracting foreign direct investment was encouraging, but sustained investment would depend on a more transparent and predictable business environment.

He stressed the need to reduce red tape, develop upstream industries and diversify the country’s industrial base while creating more employment opportunities for its young population.

His remarks came as JBCCI, which now has 391 members, began a new two-year leadership term. Kazuiki Kataoka was elected president, replacing Tareq Rafi Bhuiyan, who completed his term.

The ambassador also pointed to the EPA, signed in February, as an important milestone in Bangladesh-Japan economic relations. He expressed hope that Japanese investment proposals currently in the pipeline would materialise in the coming years.

Saida also highlighted the importance of continued high-level engagement between Dhaka and Tokyo in supporting business and investment ties.

Outgoing president Tareq Rafi Bhuiyan said the EPA could open significant opportunities for both countries, but businesses would need to prepare for its implementation. He also called for a predictable investment climate and stronger business connectivity.

Secretary General Maria Howlader said JBCCI had expanded its membership significantly and remained engaged in policy advocacy, government consultations, investment promotion and business networking during the past year.

The new president, Kataoka, said his priorities would include highlighting Japan’s contribution to Bangladesh through trade, investment and infrastructure, while making greater use of the expertise within JBCCI’s nearly 400 member companies.

The chamber also plans to place greater emphasis on sector-specific business matching, investor issue resolution, business delegations to Japan and the participation of women entrepreneurs and young business leaders.

The AGM was attended by nearly 240 business representatives, diplomats, officials and media professionals.