A new option for Bangladesh’s long-term LNG import infrastructure has been proposed, with Novatek Middle East presenting a $950 million gravity-based structure (GBS) as a cheaper and longer-lasting alternative to a conventional land-based LNG terminal.

The company presented the concept to Petrobangla yesterday. The proposed facility would be built in the Bay of Bengal as a fixed offshore terminal for receiving, storing and regasifying imported LNG (liquefied natural gas), with a regasification capacity of 7.5 million tonnes per annum (MTPA).

According to Novatek’s presentation, the GBS would cost about $950 million, compared with an estimated $1.2 billion for a conventional 7.5-MTPA land-based terminal. This would make the offshore option about $250 million, or 21 percent, cheaper in initial capital costs.

However, the figures are based on the company’s own estimates and have not been independently verified. They have also not been compared with the government’s feasibility study for the planned 7.5-MTPA land-based LNG terminal at Matarbari.

The proposal remains at a very early stage, and Novatek has not yet submitted a formal proposal.

“It was a very preliminary-level presentation. We have learned from them. We would discuss it later with the higher-ups,” a top Petrobangla official told The Daily Star.

OFFSHORE STRUCTURE COULD OFFER LONGER LIFE

The main difference between the proposed GBS and a conventional LNG terminal is where the infrastructure is located.

A land-based terminal keeps LNG storage tanks and regasification facilities on the coast, with LNG carriers unloading through marine facilities. A GBS would instead place the storage and regasification facilities offshore on a large reinforced-concrete structure fixed to the seabed. The gas would then be sent to the national grid through a subsea pipeline.

Both systems perform the same basic functions: receiving LNG, storing it, converting it back into gas and supplying it to the gas network.

Novatek has identified deep-sea areas around Moheshkhali and Matarbari as possible locations.

The company estimates that a GBS could be built in 30 to 36 months and have a design life of 60 to 80 years. A conventional land-based terminal would take about 48 to 60 months to build and have a design life of 40 to 60 years.

An FSRU (floating storage and regasification unit), meanwhile, could be deployed in 24 to 30 months but would have a design life of only about 15 years, according to the presentation.

Bangladesh currently imports LNG through two FSRUs at Moheshkhali and plans to add a third. The government has also revived efforts to develop its long-delayed 7.5-MTPA land-based LNG terminal at Matarbari.

The GBS proposal could therefore offer another option as Bangladesh faces a persistent gas shortage, declining domestic gas production and growing dependence on imported LNG.

Recent disruptions at the country’s FSRUs have also exposed the vulnerability of LNG import facilities to technical problems and adverse weather. Reduced LNG send-out during such disruptions has further squeezed gas supplies to power plants and industries.

TWO DESIGNS AIM TO WITHSTAND SEVERE WEATHER

Novatek has proposed two GBS configurations. The larger one would have gross LNG storage capacity of about 290,000 cubic metres, while the smaller one would hold about 194,000 cubic metres.

Both would have 7.5 MTPA of regasification capacity, 1 MTPA of LNG bunkering capacity and 42MW of captive power generation capacity. The larger structure would also be capable of receiving the world’s largest LNG carriers, according to the presentation.

Weather resilience is one of the main advantages claimed for the technology. Novatek describes the GBS as a stationary, all-weather terminal with “very high” resistance to cyclones. FSRUs, by comparison, can face operational disruptions from strong winds, high waves and currents.

These claims, however, would need to be tested for the proposed site. The presentation itself calls for a detailed study of weather and marine conditions, including extreme winds, waves, storm surges, currents, seabed conditions and the safe berthing and transfer of LNG carriers.

The main GBS facility would not require coastal land, according to the proposal. Some onshore infrastructure would still be necessary, however, to connect the subsea gas pipeline to the national transmission network.

The technology draws on GBS structures developed by Russia’s Novatek, which has used large concrete gravity-based structures for its Arctic LNG 2 project.

The application in Bangladesh would be different. The Arctic LNG 2 structures house LNG production and liquefaction facilities, while the proposed Bangladesh facility would receive imported LNG, store it and convert it back into gas for domestic use.

‘Virtual pipeline’ and regional hub planned

The proposal also includes a second phase in which small, shallow-draft vessels would transport LNG from the offshore terminal to riverbank facilities near Meghnaghat, Ashuganj, Ghorashal and Bheramara.

Novatek calls this a “virtual pipeline” that could supply major gas-consuming areas without relying entirely on the existing pipeline network.

The idea comes as the government is also exploring the use of ISO tanks from Malaysia to transport LNG to gas-starved areas outside the main gas network.

ISO tanks would carry LNG in standardised cryogenic containers by road or other transport modes and would serve relatively small volumes. Novatek’s proposed system, in contrast, would move much larger volumes using dedicated LNG vessels to riverbank regasification facilities.

Novatek also sees the GBS becoming a regional LNG transhipment and bunkering hub. The presentation identifies potential shipments from Bangladesh to India, Pakistan, Sri Lanka, Vietnam, Malaysia and Indonesia using small and medium-sized LNG vessels.

Novatek has proposed an investment model based on foreign direct investment, but the presentation does not provide details on the commercial structure, tariffs, financing costs or expected investor returns.

Import-export activities between Bangladesh and India through Hili land port in Dinajpur resumed yesterday after remaining suspended for six days due to an indefinite strike by Indian traders.

Md Anwar Hossain, deputy director of the Customs Preventive Department at Hili land port, confirmed the resumption of activities to BSS around 4:30pm yesterday.

The activities resumed after Indian traders withdrew their indefinite strike at noon yesterday following assurances from the Indian government and administration.

With the reopening of the port, business activities have returned to normal, bringing renewed bustle among traders, customs officials, transport workers and others associated with the port.

Md Shahinur Islam Mondal, general secretary of the Hili Customs C&F Agents Association, said many traders at Hili in India had been suffering financial losses as the port was lagging behind other land ports in West Bengal in terms of commercial competition.

He said a section of the traders had decided to suspend import-export activities indefinitely over the issue, resulting in a complete halt to the movement of goods between the two countries through Hili land port for the past six days.

By 4:30pm, five trucks carrying imported Indian goods had entered Bangladesh through the port.

After the resumption of trade, Bangladeshi cargo trucks also started entering India, while trucks carrying various goods from India began entering Bangladesh. Arrangements were made for the immediate unloading of imported goods, and cleared consignments were transported to different parts of Bangladesh by local trucks, port authorities said.

Meanwhile, SI Md Zakaria, officer-in-charge of Hili Immigration Checkpost, said the movement of passport-holding passengers between the two countries had remained normal despite the suspension of import-export activities.

He said passenger movement through the immigration checkpost was continuing smoothly.

Bangladesh's per capita debt stood at Tk1,29,239 as of 31 March 2026, Finance Minister Amir Khosru Mahmud Chowdhury told parliament today (6 September).

He disclosed the figure in response to a question from Kushtia-1 lawmaker Reza Ahmed during the question-and-answer session in parliament.

The finance minister said the government was prioritising higher revenue collection, efficient management of public finances and disciplined debt management to reduce the debt burden on citizens.

The government is also taking steps to reduce its reliance on borrowing by increasing its own revenue, while seeking to lower financing requirements through more cost-effective and productive public spending and by curbing unnecessary expenditure, he said.

Khosru said the government was also placing greater emphasis on debt management to keep the country's borrowing requirements under control.

In another response to question from Cox's Bazar-3 lawmaker Lutfor Rahman, Khosru said Bangladesh had borrowed $81.83 billion from abroad between 2010 and June 2024.

During the same period, the government repaid $17.11 billion in principal and $6.04 billion in interest on its external debt.

Bangladesh has resolved 48 of 61 non-tariff barriers identified in bilateral trade with the European Union (EU), while work is underway to address the remaining 13, Commerce Minister Khandakar Abdul Muktadir said today (6 September).

He disclosed the information at a joint press briefing at the Commerce Ministry in Dhaka following a meeting with officials of the EU Delegation to Bangladesh.

EU Ambassador Michael Miller, Adviser to the Finance and Planning Ministry Rashed Al Mahmud Titumir, State Minister for Foreign Affairs Shama Obaid, State Minister for Planning Zonayed Abdur Rahim Saki and senior officials of the commerce and foreign ministries attended the briefing.

The commerce minister said the EU had earlier raised concerns over several non-tariff barriers affecting bilateral trade. Of the 61 issues identified, 48 have been resolved, while efforts are continuing to address the remaining 13.

He said an EU delegation led by the bloc's ambassador had raised several specific trade-related obstacles in March after the government took office.

Since then, coordinated efforts involving the National Board of Revenue (NBR) and the agriculture, fisheries and livestock, and shipping ministries, among others, had helped resolve most of the issues.

Among the barriers addressed were complications over licence renewals for 100% foreign-owned logistics companies, an increase in the annual limit for importing commercial samples from $10,000 to $20,000, and customs valuation issues involving scanning smart cards used for export traceability.

The minister also said Bangladesh had formally sought EU support for its proposal to defer graduation from the least developed country (LDC) category by three years.

He expressed hope that the EU would support the proposal and that it would eventually be approved.

Muktadir said the issue is expected to come up for a decision at the 81st session of the United Nations General Assembly this month.

He said Bangladesh had therefore sought EU cooperation in support of the proposal.

The minister added that recommendations from the UN Committee for Development Policy (CDP) and the Economic and Social Council (ECOSOC) regarding the deferment proposal had been positive.

Preparations are also advancing for talks with the EU on a free trade agreement (FTA) and an investment protection agreement.

EU Ambassador and Head of Delegation Michael Miller said the European Commission had responded positively to Bangladesh's formal proposals for both agreements.

He said joint technical discussions could begin as early as this week once the necessary approvals from EU member states are completed.

Miller said a transparent, stable and competitive business environment would be necessary to deepen economic cooperation between Bangladesh and the EU.

He added that both sides would benefit from greater transparency and fair competition in public procurement.

The ambassador also expressed hope that discussions on Airbus procurement would move forward as part of efforts to expand aviation and trade cooperation between Bangladesh and the EU.

Responding to a question on imports from the United States, the commerce minister said Bangladesh makes import decisions based on national interest, economic rationale and public need.

He said government procurement decisions involving energy, including LNG, and foodgrains are approved after considering competitive prices, product quality and wastage rates.

Bangladesh's trade policy is not driven by the influence of any particular country, he said, adding that the country's economic interests and public welfare remain the main considerations behind such decisions.

Non-performing loans (NPLs) at six state-owned banks stood at Tk1.47 lakh crore at the end of June, with Janata Bank alone accounting for more than half of the total.

Janata Bank topped the list with Tk75,396 crore in NPLs, followed by Agrani Bank at Tk29,029 crore, Rupali Bank at Tk19,281 crore and Sonali Bank at Tk15,048 crore. BASIC Bank had Tk8,131 crore, while Bangladesh Development Bank had Tk888 crore in NPLs.

Finance Minister Amir Khosru Mahmud Chowdhury disclosed the figures yesterday in reply to a question from Jamaat MP Md Abdul Alim of Bagerhat-4 during the parliamentary session chaired by Deputy Speaker Kayser Kamal.

According to the latest Bangladesh Bank data, the banking sector's total NPLs reached Tk6,06,555 crore at the end of June, accounting for 32.78% of total loans. NPLs rose by Tk17,851 crore from Tk5,88,704 crore three months earlier.

Loans waived for 14 lakh farmers

In reply to Chuadanga-4 MP Md Ruhul Amin, the finance minister said loans, including interest, of 1,434,482 farmers who had borrowed up to Tk10,000 were waived between the government's assumption of office and July 2026.

The government paid Tk1,352.74 crore to banks to settle the waived loans.

Asian wheat importers, including Bangladesh, have bought at least half a million metric tons of Australian and Argentinean wheat in recent deals, three trade sources said, as buyers scramble to replace Black ​Sea cargoes delayed by attacks on vessels and grain export infrastructure.

Importers in the region, including ‌Indonesia, the world's second-largest wheat buyer, are paying sharply higher prices for alternative supplies, they said, with several countries relying heavily on imports to meet domestic demand.

"There have been bulk deals in the last one week to 10 days for ​Australian as well Argentinian wheat to fulfil urgent needs," said one Asian-based trader at an international ​trading company which supplies wheat to millers in the region.

"Importers are trying to take ⁠alternative shipments for cargoes that have not arrived from Russia and Ukraine."

Global wheat importers are facing tight supplies ​as Russian and Ukrainian attacks on ports and vessels have disrupted grain terminals, forcing shippers to delay or ​cancel loadings of dozens of cargoes during the peak export season.

US agricultural commodity group ADM said on Wednesday that a drone strike on August 31 damaged its UEP grain terminal at the Ukrainian Black Sea port of Odesa.

Buyers paid around $315-$330 per ton, ​including cost and freight, for Australian Premium White wheat, while deals for Argentinean wheat were concluded around $310-$315 ​per ton, traders said.

This compares with most Black Sea cargoes booked around $260 to $280 per ton for August-September arrivals.

Benchmark Chicago futures ‌have climbed ⁠about 35% since late June, fuelled largely by a shortfall in Black Sea supplies, while cash prices have jumped across rival exporters Argentina, Australia and the United States.

CBOT wheat reached its highest level in 3-1/2 years on Tuesday after reports Moscow had rejected a moratorium on attacks in the Black Sea region and ​launched overnight strikes on Ukrainian ​port infrastructure.

Grain processors in ⁠Asia have booked about 2.0 million to 2.5 million tons of Black Sea wheat for July-September shipment, or about 30% to 50% of import demand. Yet growing ​shipping delays have fuelled concerns that a portion of the grain may fail ​to reach ⁠buyers.

Besides Indonesia, other Asian buyers of Black Sea wheat include Bangladesh, Vietnam, Malaysia, Thailand and Sri Lanka.

While buyers are securing bulk volumes of Australian and Argentine wheat, some have turned to container shipments to meet immediate needs, ⁠traders said.

"Some ​millers are preferring containers as they have agreed with suppliers to ​further delay the arrival of Black Sea cargoes," said a second Asia-based trader. "They don't want to take on too much exposure to ​high prices, so they are using containers to meet their immediate needs."

Companies will not be shut down solely because of graft allegations against individuals, Finance Minister Amir Khosru Mahmud Chowdhury told parliament today (6 September).

"If there are allegations of corruption against an individual, a case can be filed against that person and they will be tried according to the law. But a company's operations cannot be shut down because of an individual," he said.

Khosru made the remarks in response to a supplementary question from Noakhali-6 lawmaker Abdul Hannan Masud during the question-and-answer session in parliament over the provision of new loans to S Alam Group, which has been accused of loan default.

The session was chaired by Deputy Speaker Kayser Kamal.

The finance minister said individuals and companies are separate legal entities, noting that a company is a legal and corporate entity with employees, loans, liabilities and an economic contribution.

Referring to S Alam Group, he said those accused of corruption were not being spared.

"Cases are being filed against them and the trials will continue. But before shutting down any company, we also have to assess its impact on the country's economy. An economy does not run on emotion. It has to run on law," Khosru added.

He further said Bangladesh Bank was not providing loans to anyone in violation of the law. "Companies eligible for loan rescheduling can avail themselves of the facility in accordance with the law."

Khosru also reiterated that individuals accused of corruption would continue to face trial.

Per capita public debt Tk1,29,239

In response to a question from Kushtia-1 lawmaker Reza Ahmed, Khosru said per capita public debt stood at Tk1,29,239 as of 31 March 2026.

He said the government was focusing on increasing revenue collection, improving public financial management and strengthening debt management to reduce the debt burden on citizens.

The government is also seeking to reduce its reliance on borrowing by increasing domestic revenue, while lowering financing needs through more cost-effective and productive public spending and controlling unnecessary expenditure, he said.

Bangladesh borrowed $81.83 billion from abroad

In response to a question from Cox's Bazar-3 lawmaker Lutfor Rahman, Khosru said Bangladesh had borrowed $81.83 billion from abroad between 2010 and June 2024.

During the same period, the government repaid $17.11 billion in principal and $6.04 billion in interest on its external debt.

Sammilito Islamic Bank has received nearly Tk5,000 crore from Bangladesh Bank to repay deposits, while customers have sought to withdraw Tk3,925 crore over the past four working days. A senior Bangladesh Bank official confirmed the figure to The Business Standard.

Since 1 September, around 74,221 customers have applied to withdraw Tk3,925 crore. Applications stood at 18,046 worth Tk1,329 crore on the first day, 19,613 worth Tk1,016 crore on the second, 21,086 worth Tk923 crore on the third and 15,476 worth Tk657 crore on the fourth.

Md Abedur Rahman Sikder, managing director of Sammilito Islamic Bank, said, "Figures are much lower than our expectations, which shows customer trust and confidence in us".

He said the bank had adequate preparations at branches of its five constituent banks and applications had declined gradually. The bank has nearly Tk10,000 crore in its current account with Bangladesh Bank, of which Tk5,000 crore was transferred today (6 September) to the five banks' accounts.

"The government owns this bank. Customers will transact with this bank with the same confidence they have in other state-owned banks," the official said.

Customers withdrawing before maturity will receive only the principal, while those keeping deposits until maturity will receive profits as agreed. They can withdraw cash or transfer funds to other banks through RTGS.

The official said adequate funds had been supplied to branches and there was no reason for depositors to be concerned.

Withdrawals begin tomorrow
Individual depositors can withdraw principal from Al-Wadiah current, Mudaraba savings, MTDR, DPS and other accounts. The bank accepted applications until today to complete cash and branch preparations and will begin payments tomorrow (7 September).

Customers keeping accounts open will continue receiving profits at agreed rates; once operations fully resume, deposits and withdrawals, including profits, will be allowed without limits. The Bangladesh Bank's Bank Resolution Department issued the directive on 31 August.

Formed under the interim government after Exim, Social Islami, First Security Islami, Global Islami and Union Bank failed to return deposits amid irregularities and fraud allegations, Sammilito Islamic Bank has 7.6 million depositors with Tk1.42 lakh crore in deposits.

Its loans total Tk1.92 lakh crore, 86% of which are in default, while capital shortfall exceeds Tk1.5 lakh crore.

The state-owned bank began operations last November with Tk40,000 crore authorised and Tk35,000 crore paid-up capital, including Tk20,000 crore from the government and Tk15,000 crore to be issued as depositor shares.

He made the remarks during the question-and-answer session of the Jatiya Sangsad while responding to a supplementary query from Md. Abdul Alim, Member of Parliament for Bagherhat-4. Deputy Speaker Barrister Kayser Kamal presided over the session.

The Finance Minister acknowledged that there is a widespread fear among people regarding coming under the tax net for various reasons, which discourages voluntary compliance. "It is true that there is a fear among people about falling under the tax net for various reasons. That is why people are reluctant to come forward. It is not just about audits; there are many other barriers contributing to taxpayers' apprehensions," he said.

Referring to the structural overhaul of the NBR to simplify the tax system, the minister stated: "We are moving the entire tax system toward bifurcation. Those who formulate tax policies at the NBR and those who implement them are being separated." He added that previously, this overlap created significant opportunities for corruption and undue influence. Separating the two functions will largely eliminate such opportunities, he asserted.

The government is striving to ensure transparency in implementation, the minister said. "We want every taxpayer to come forward to pay taxes easily. Bangladesh's tax-to-GDP ratio is very low. The lack of sustained efforts on this front in previous years has caused us to fall far behind. The simpler we make the tax system, the more people will voluntarily come forward. We are focusing on that," he added.

The finance minister assured Parliament that the government is identifying and resolving issues such as audit-related problems to simplify the tax system, promising that positive results would be visible very soon.

The European Union has called for a level playing field for its businesses and investors in Bangladesh, highlighting the proposed purchase of Airbus aircraft as an example, as Dhaka reported progress in resolving trade barriers raised by the bloc.
Advertisement

An EU delegation raised the issue with ministers and senior officials at a meeting at the Ministry of Commerce on Sunday, when the Bangladesh side briefed 27 EU representatives on progress in addressing the non-tariff barriers (NTBs).

The two sides also discussed a free trade agreement and EU support for Bangladesh's request to defer its LDC graduation.

"We have so far addressed 48 of the 61 identified non-tariff barriers (NTBs), while 13 remain at various stages of resolution," Commerce Minister Khandakar Abdul Muktadir told a joint press briefing following the meeting.

The two sides also discussed a free trade agreement and EU support for Dhaka's request to defer its LDC graduation.

State Minister for Planning Jonaed Abdur Rahim Saki, Ambassador and Head of the EU Delegation to Bangladesh Michael Miller, NBR Chairman Ahsan Habib and Commerce Secretary Md Ataur Rahman Khan were also present at the press briefing.

Adviser to the Ministry of Finance and Planning Rashed Al Mahmud Titumir, State Minister for Foreign Affairs Shama Obaed, Finance Secretary Md Khairuzzaman Mozumder and senior officials from the ministries of commerce and foreign affairs were present at the meeting with the EU delegation.

The commerce minister said Bangladesh had already resolved 48 of the 61 trade barriers identified by the EU, while the remaining 13 were at different stages of resolution.

He said the government had worked with several ministries and agencies, including the National Board of Revenue (NBR) and the ministries of agriculture, fisheries and livestock, and shipping, to address the EU's concerns over the NTBs.

The minister said Bangladesh was also preparing to begin negotiations with the EU for a free trade agreement (FTA), describing the issue as strategically important as the EU is Bangladesh's largest export market.

He also sought EU support for Bangladesh's request to defer its LDC graduation by three years.

Bangladesh has already secured recommendations from the UN Committee for Development Policy (CDP) and the Economic and Social Council (ECOSOC), and the matter is expected to be placed before the 81st session of the UN General Assembly, he said.

"EU support is very important for us in this process," he said, adding that strong support from the European Union would play an important role for Bangladesh.

Explaining some of the measures taken to remove the trade barriers, he said restrictions on the renewal of licences for 100-per-cent foreign-owned logistics companies had been removed.

The annual limit for the import of samples by exporters and businesses had also been doubled to $20,000 from $10,000 through the latest Import Policy Order, he added.

The government had also revised the customs valuation of smart cards used for product traceability, introducing two categories based on their actual value instead of applying duties to an artificially higher value, according to the minister.

However, the requirement to obtain a government no-objection certificate (NOC) 15 days before importing or exporting goods under the country's flag-vessel protection law remains unresolved.

The law requires 50 per cent of Bangladesh's imports and exports to be carried by Bangladeshi-owned vessels.

The minister said Bangladesh currently had around 122 vessels, including seven operated by Bangladesh Shipping Corporation and about 115 privately owned vessels, which were insufficient to carry half of the country's roughly $130 billion annual two-way trade.

He said the government would seek to resolve the issue by amending the relevant law.

EU envoy Michael Miller said the EU wanted to further deepen economic and political relations with Bangladesh.

He stressed the need to ensure a level playing field for EU businesses and investors operating in Bangladesh, citing the proposed purchase of Airbus aircraft as an example.

He also highlighted the first round of negotiations on a Bangladesh-EU FTA as an important step in strengthening bilateral economic ties.

The EU ambassador called for greater cooperation in areas including border management, intellectual property rights and human rights.

Replying to questions on Bangladesh's trade relations with the United States, the commerce minister said the government evaluated purchases from different countries on their own merits, rather than solely on the basis of headline prices.

He cited Bangladesh's planned purchase of LNG from a US company as an example, saying the company had offered 117 cargoes through 2038 at an average price of around $9 per unit, based on the index applicable when the cabinet committee approved the deal.

He also said Bangladesh imported wheat from the US because its wastage rate was lower than that of wheat sourced from some other countries, making it economically beneficial when the full cost was considered.

"We try to apply our best judgement based on the merits of each purchase, whether it is from the US, the EU, China, India, or elsewhere," he said.

The EU is Bangladesh's largest trading partner, with bilateral trade in goods reaching €23.3 billion in 2025.

Currently, Bangladesh enjoys a substantial trade surplus with the bloc, largely driven by garment exports. The EU imported nearly 94 per cent of its goods from Bangladesh in textiles in 2025.

As an LDC, Bangladesh currently enjoys duty-free and quota-free market access to the EU under the Everything But Arms (EBA) scheme, a key advantage for the country's export-oriented economy.

Singapore-based global hospitality giant, The Ascott Limited is eyeing Bangladesh as a potential growth market and is open to partnering with local property owners to bring its international hotel and serviced-residence brands to the country.

"Bangladesh is a market we are watching closely as part of our growth strategy in South Asia. The combination of business and leisure demand in destinations such as Dhaka, Chattogram and Cox's Bazar makes it a promising market for Ascott," an Ascott spokesperson told The Business Standard via email following an in-person conversation in Singapore.

The company, however, does not have any confirmed project to announce in Bangladesh at this stage. "While we don't have confirmed plans to share at this stage, we remain open to exploring partnerships with like-minded property owners to bring our brands and concepts."

Ascott's interest comes as Bangladesh's hospitality market continues to see demand from business travellers, tourists, expatriates and long-stay visitors, particularly in Dhaka and major tourism destinations such as Cox's Bazar.

"That demand profile is well suited to our flex-hybrid business model, which caters to different traveller needs, from short business and leisure stays to extended stays and relocation," the spokesperson said.

Asset-light expansion strategy

Unlike a conventional property investment model, Ascott primarily expands through management and franchise partnerships, allowing property owners and investors to develop or convert properties under its international brands without requiring Ascott to make the entire capital investment itself.

Ascott's growth as a global company is asset-light by design, driven by management and franchise partnerships rather than direct capital investment, the company said. Under this model, Ascott brings its hospitality expertise, operating systems and brands, while property owners can benefit from international management and distribution networks.

Across serviced residences, hotels, resorts, social-living properties and branded residences, the company works with property owners to address demand gaps, create distinctive guest experiences and generate long-term value.

Bangladesh fits its brand portfolio

Ascott has a diverse portfolio of brands covering the upper-midscale, upscale and luxury segments, giving property owners flexibility to target different categories of travellers.

Its brands include Ascott, Citadines, lyf, Oakwood Premier, Oakwood, Somerset, The Crest Collection, The Unlimited Collection, Adoor Apartment, Adoor Suites, Fox, Harris, POP!, Preference, Quest, Vertu and Yello.

The Ascott Limited is a wholly owned business unit of CapitaLand Investment Limited.

The company currently has more than 1,000 properties across over 230 cities in more than 40 countries, with a presence spanning Asia Pacific, Central Asia, Europe, the Middle East, Africa and the US. In South Asia, Ascott has 27 properties, mainly in India.

The general manager of a five-star hotel in Dhaka's Gulshan area told TBS, "The business model followed by global hospitality chains like Ascott is well-suited to Bangladesh. Local businesses are also looking for such opportunities to partner with global chains."

Bangladesh's first tourism master plan aims to attract 5.57 million foreign tourists by 2041. In recent years, Bangladesh has drawn over 0.6 million foreign passport holders annually.

Sustainability becomes growth priority

During a recent visit by a group of journalists from across Asia, including this correspondent, to three Ascott properties in Singapore, the company showcased how sustainability and innovation are being incorporated into its hospitality operations.

Siew Kim Beh, chief financial and sustainability officer at Ascott, said sustainability is being implemented across its properties in different ways.

"Across our properties, sustainability comes to life in different ways: from AI-powered cooling optimisation for energy efficiency and more accessible guest journeys for persons with disabilities, to initiatives that encourage guests to make more sustainable choices during their stay," she said.

At lyf Funan Singapore, the company showcased some of these initiatives, including a farm-to-table tea tasting using ingredients grown on the property's rooftop farm.

Ascott launched Ascott CARES, its global sustainability framework, in 2022. The framework is built around the Global Sustainable Tourism Council (GSTC) Standards and integrates environmental, social and governance (ESG) considerations into the company's operations and growth strategy.

Since then, Ascott has achieved GSTC-Committed Status, expanded GSTC certification across its portfolio and established science-based climate targets, including a target of net-zero Scope 1 and 2 emissions by 2050.

Bangladesh's gross foreign exchange reserves have reached $36.38 billion, underscoring a cautious stabilisation of the country's external finances.

According to data released by Bangladesh Bank, reserves calculated under the International Monetary Fund’s rigorous manual (BPM6) stood at $31.47 billion on Sunday.

The current reserve position points to a steady accumulation of foreign currency, driven largely by remittance inflows and export receipts.

While global commodity pricing and debt servicing continue to test the economy, $31.47 billion usable reserves provide the central bank with headroom to manage exchange rate volatility.

Even at the higher end of the import bill ($6.5 billion per month), the BPM6 reserves provide about 4.8 months of cover.

This remains above the IMF’s standard minimum safety threshold, which recommends maintaining at least three months of import coverage to absorb external economic shocks.

The Bangladesh Bank (BB) has increased the annual foreign exchange travel entitlement for Bangladeshi nationals to $18,000 from $12,000, aiming to facilitate genuine travel-related foreign exchange requirements.

In a circular yesterday, the BB allowed authorised dealers (ADs) -- commercial banks permitted to handle foreign exchange transactions -- to release foreign exchange of up to $18,000, or the equivalent amount, per calendar year to an adult Bangladeshi national residing in the country for travel abroad.

The decision has been taken with a view to facilitating genuine travel-related foreign exchange requirements of Bangladeshi nationals and considering the evolving needs of international travel, said the central bank. The entitlement for minors below 12 years of age will remain at 50 percent of the amount admissible for adults.

The BB has also retained the existing restriction on the release of foreign exchange in the form of US dollar notes. Cash dollar releases will remain capped at $5,000 per person, within the applicable annual travel entitlement.

The move is expected to provide greater flexibility to Bangladeshi travellers in meeting legitimate expenses related to overseas travel, including tourism, family visits and other permissible purposes, said a senior BB official.

Bangladesh has one of the highest costs for remittance transfers among the least developed countries (LDCs), with the average transaction cost of sending remittances to the country standing at 7-8 percent.

According to the latest global trade update by the United Nations Conference on Trade and Development (UNCTAD), Bangladesh was featured in a 2023 remittance transfer benchmark by the World Bank.

Bangladesh is one of the top 10 remittance-receiving countries in the world, thanks to millions of migrant workers, mainly in the Middle East, who send money home, helping the country meet much of its external payment needs.

The UNCTAD report said LDCs account for half of the countries with the highest remittance costs globally. Benin and Angola have the highest remittance transfer costs, while Lao PDR and Haiti have the lowest among LDCs.

“However, real progress has been made, particularly in Africa,” said the UNCTAD report, released on September 4.

Bangladesh is one of the top 10 remittance-receiving countries in the world, thanks to millions of migrant workers, who send money home, helping the country meet much of its external payment needs

The report said mobile money use among adults in sub-Saharan Africa rose from around 27 percent in 2021 to about 40 percent in 2024. The Pan-African Payment and Settlement System (PAPSS) is also helping to lower cross-border transaction costs and reduce reliance on offshore clearing.

UNCTAD said trade in digitally deliverable services is growing rapidly, but LDCs are not keeping pace.

It said that over the past decade, global services exports expanded by about 6.7 percent annually, outpacing goods exports, and increased by 8.3 percent in 2025.

“The expansion of digitally deliverable services (DDS) has been an important driver of this growth, enabled by the spread of digital platforms, cloud computing and improved connectivity in some regions,” it said.

DDS trade grew faster than total services, at an average annual rate of 7.1 percent, and now represents 56 percent of global services exports.

LDCs have benefited far less from this growth. Their services exports grew by only 3 percent annually over the same period, while their share of global services exports, already below 1 percent in 2010, declined further to just 0.6 percent in 2025.

Moreover, digitally deliverable services, which include telecommunications, computer services and professional consulting, now account for 56 percent of global services exports. In developed economies, DDS accounts for 61 percent of services exports, compared with only 16 percent in LDCs.

After 2020, LDC DDS exports showed very little progress, widening the gap with the rest of the world, said the report.

The UNCTAD report also highlighted “servicification” — the growing use of services as inputs across all sectors, such as logistics, finance, design and data management.

“Servicification has emerged as a key driver of economic diversification, structural transformation and participation in global value chains,” it said.

By 2022, services accounted for 71 percent of global intermediate inputs, ranging from 78 percent in developed economies to 61 percent in developing economies. In LDCs, services accounted for 58 percent of intermediate inputs.

UNCTAD said services represent 33 percent of intermediate inputs in industrial goods exports globally, but this drops to just 13 percent in LDCs, including Bangladesh.

“Services should be viewed not only as a sector in their own right but also as critical inputs into the production and export of goods. The quality, cost and availability of services directly affect competitiveness and participation in global value chains across all sectors,” it said.

The role of services in developing countries’ trade is often underestimated because the services embedded in goods exports are not adequately measured, it added.

“Unlocking the benefits of servicification, the growing use of services as inputs across all sectors, requires targeted action to strengthen data governance, digital infrastructure, regulatory frameworks and participation in trade negotiations, particularly for developing and least developed economies,” it added.

The UNCTAD report said services are reshaping global trade, but poor connectivity, costly cross-border payments and skills gaps continue to restrict participation by developing countries.

“Artificial intelligence may widen the gap because computing capacity, data, finance and expertise remain concentrated in a few economies.”

The report also flagged sluggish progress in multilateral rules on digital trade. It said divergent provisions in regional and bilateral agreements have increased regulatory complexity.

“Developing countries need better data, stronger digital infrastructure and greater capacity to shape emerging rules.”

Bangladesh retained the second position in garment exports to the US in the January-July period as China’s apparel shipments to the American market recorded their steepest decline.

Bangladesh first overtook China in January-February as the Trump administration imposed higher tariffs on Chinese garment imports.
It retained the position in January-July despite a 6.50 percent year-on-year decline in garment exports to the US to $4.66 billion, mainly due to weaker demand for locally made apparel, according to data from the Office of Textiles and Apparel (OTEXA), the US provider of global apparel import data.In July alone, Bangladesh’s garment exports to the US fell 10.73 percent.

Overall, US apparel imports declined 8.65 percent year-on-year to $41.83 billion in January-July.

China’s apparel shipments to the US fell 34.21 percent to $4.55 billion, while India’s declined 25.77 percent to $2.45 billion and Pakistan’s 5.60 percent to $1.26 billion.

Vietnam’s shipments fell 1.03 percent to $9.36 billion, while Indonesia and Cambodia posted growth of 2.76 percent and 10.48 percent to $2.74 billion and $2.62 billion, respectively.

Vietnam remained the largest apparel exporter to the US, followed by Bangladesh and China.

Bangladesh is in a relatively better position than some other apparel-exporting countries in terms of tariffs, which is helping boost shipments to the US market, said Shovon Islam, managing director of Sparrow Group.

“Although exports are in a good position, prices declined in January-July as local exporters had to bear part of the reciprocal tariff,” he said.

If the energy crisis is resolved, Bangladesh could perform even better in the US market, Shovon added.

“China is losing market share, and Bangladesh may be able to perform better in the future. In fact, Vietnam is taking more of China’s market in the US, while Bangladesh is taking a smaller share,” said Anwar Ul Alam Chowdhury Parvez, chairman and managing director of Evince Group, which ships a significant portion of its garments to the US.

However, Bangladesh’s ability to retain the position could be challenged by the ongoing energy crisis, he said.

“We are concerned whether Bangladesh can retain this position in the US market as the energy crisis persists in industrial units. Buyers are also well aware of the energy situation,” Anwar said. If the country can ensure adequate energy supplies, Bangladesh may sustain the positive trend, he added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Bangladesh could benefit further as China loses market share in the US, but sustaining growth will require lower production costs and reliable gas and power supplies.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the outlook for garment exports to the US was positive as work orders were rebounding following the finalisation of effective tariff rates for individual countries by the US government.

However, the industry’s focus should not be on export volume alone, but also on how much value local manufacturers retain, he said.

“Obtaining letters of credit from international buyers should not be the main target, as many exporters cannot make even a minimum profit because of high import costs for raw materials such as fabrics and chemicals,” Mahmud said.

Many exporters are also shipping goods below production cost in the hope of making profits later, he said. The BGMEA wants the industry to achieve a retention value of $20 billion if Bangladesh exports $50 billion worth of garments a year, Mahmud added.

The US is Bangladesh’s single largest garment export destination.
Google News LinkFor all latest news, follow The Daily Star's Google News channel.

In February, Bangladesh and the US signed the Agreement on Reciprocal Trade (ART), which includes a textile clause. Under the clause, garments made in Bangladesh using US-sourced cotton and man-made fibres could qualify for duty-free access to the US market.

The provision could further strengthen Bangladesh’s competitiveness in the US market if implemented properly.

The country's prolonged gas crisis has pushed the ceramics industry to the brink, forcing some factories to shut production lines while others operate at less than half their capacity.

Industry leaders said more than 30 ceramics, tiles and sanitaryware factories in major industrial belts including Gazipur, Narayanganj, Savar, Dhamrai, Narsingdi, Mymensingh, and Habiganj are facing severe gas shortages.

They said ceramics factories require around 15 pounds per square inch (PSI), but pressure has frequently dropped to 3-4 PSI and, at times, fallen to zero for most of the past month, forcing many factories to operate at only 34-40% capacity.

Overall production in the ceramics sector has fallen to around 35%. The crisis is also driving up production costs, reducing exports, disrupting domestic supplies and prompting foreign buyers to cancel or cut orders.

"If the situation doesn't improve quickly, factories will fall into a severe financial crisis. Imports may also rise as domestic production declines," said Irfan Uddin, secretary of the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA).

Gas accounts for around 12% of ceramic production costs, according to the BCMEA. Kilns require uninterrupted gas supply for about 24 hours as sudden pressure drops can damage or destroy products inside them.

Once a kiln is shut down, it takes another 48-72 hours to restart after gas pressure returns to normal, making intermittent supply particularly damaging for manufacturers.

The disruption is therefore making it increasingly difficult for factories to maintain production, fulfil export orders and ensure regular supplies to the domestic market.

Artisan Ceramics, which exports tableware to Europe and other international markets, has seen its production fall by around 35% because of the gas crisis.

The company's Gazipur factory has a daily production capacity of seven tonnes. It has taken a Palli Bidyut electricity connection as an alternative source of energy to keep production running, but frequent load-shedding is creating additional problems.

"The gas and electricity crisis has increased our production costs by 35-40%," said Mamunur Rashid, chief executive officer of Artisan Ceramics.

"Production has been disrupted due to the gas and electricity crisis, causing exports to fall by around 35-40%. We have also had to reduce the orders we accept. Buyers are becoming frustrated. We are worried whether they will give us orders next year," he said.

Factories shut, workers sent on leave

Great Wall Ceramic Industries' tile factory in Sreepur, Gazipur, has been shut for a week, cutting production by around 40,000 square metres a day. Most workers are sent on leave.

Its sanitaryware factory in Habiganj normally produces about 100,000 toilets, basins and other sanitary products a month. However, its production has fallen by around 35%.

An official of Great Wall said the company normally keeps a tile stock equivalent to one to one-and-a-half months' sales.

"Production has been disrupted for almost a month due to the gas crisis. As a result, we cannot meet market demand, and sales have already declined. If the situation does not improve within the next one or two weeks, sales could come to a complete halt," he said.

Leading ceramics manufacturer RAK Ceramics was forced to shut all four production units for eight consecutive days due to the gas crisis. One unit resumed operations last Friday, leaving the company running at roughly 25% of capacity.

RAK Ceramics Chief Executive Officer Mohammad Khorshed Alam said the company had yet to calculate the losses caused by the shutdown.

The disruption has also hit Mir Ceramics in Sreepur, Gazipur. Three of its four production units have remained shut for 17 days, cutting daily tile output from a capacity of around 300,000 square feet to just 50,000 square feet. Most of the factory's 800 workers are on leave. An official of Mir Ceramics said gas pressure was sufficient to operate only one unit.

Meghna Group of Industries' ceramics factory in Ashariarchar, Sonargaon, Narayanganj, is also struggling with inadequate gas supply.

AKM Ziaul Islam, chief operating officer of Meghna Ceramics Industries, said the factory has a daily tile production capacity of 51,000 square metres, but gas shortages have disrupted output and prevented the company from meeting market demand.

Domestic market at risk

According to BCMEA data, Bangladesh has 76 ceramic factories producing tableware, tiles, sanitaryware and ceramic bricks, including 31 tile factories.

The domestic tile market was worth Tk5,854 crore in FY25, with local companies holding an 82% share. The overall ceramics market stood at Tk8,250 crore in 2024-25 fiscal year.

The sector has attracted around Tk20,000 crore in investment and employs five lakh people. Ceramic factories are located in Gazipur, Mymensingh, Narayanganj, Habiganj and Bhola.

Industry insiders said almost all factories in the affected areas are facing gas shortages, except seven to eight in Bhola and Habiganj with comparatively better supplies.

The affected industrial clusters include Savar and Dhamrai in Dhaka; Rupganj and Meghnaghat in Narayanganj; Kashimpur, Bhabanipur, Bhawal Mirzapur, Sreepur and Mawna in Gazipur; Panchdona in Narsingdi; Bhaluka and Trishal in Mymensingh; and Madhabpur and Bahubal in Habiganj.

Industry executives said most affected factories are operating at only 20-30% capacity.

BCMEA President Moinul Islam said factories outside Bhola and Habiganj were unable to operate at full capacity because of gas shortages.

He said Bangladesh Chamber of Industries (BCI) representatives recently met Industry and Commerce Minister Khandaker Abdul Muktadir to discuss the gas crisis.

"For an industry that has invested around Tk20,000 crore and employs nearly half a million people, manufacturers now fear that a prolonged gas crisis could turn a temporary production disruption into a deeper industrial and employment crisis," he added.

Bangladesh received US$6.046 billion in workers' remittances during July 1 to September 2 of the current fiscal year (FY2026-27), registering an 18.6 per cent year-on-year growth compared to US$5.098 billion during the corresponding period of FY2025-26.

According to Bangladesh Bank data, the country received US$220 million in remittances during September 1-2, 2026, against US$198 million received during the same period last year, showing an 11.4 per cent year-on-year growth.

On September 2 alone, expatriate Bangladeshis sent home US$108 million through formal banking channels.

The sustained growth in remittance inflows is expected to help strengthen the country's foreign exchange reserves and support external-sector stability.

The large-scale manufacturing rebounded sharply with a 14.5-percent expansion in June, the final month of the fiscal year 2026, according to official statistics.
Advertisement

It provides a stronger-than-expected end to a volatile 2025-26 fiscal year marked by repeated contractions amid economic uncertainty.

The June spike in the Index of Industrial Production (IIP) of large-scale manufacturing suggests that the country's industrial sector may be regaining momentum after a prolonged period of weakness.

Large-scale manufacturing accounts for more than 11 per cent of gross domestic product or GDP of the country, making its performance an important indicator of broader economic activity.

The rebound, however, was not broad-based.

Much of the June growth came from the clothing industry, which carries a dominant 61-percent weight in the manufacturing index.

The textile sector, the second-largest component with an 11 -percent weight, remained almost stagnant during the month.

The concentration of growth in garments raises questions about the strength of the wider industrial recovery.

While the performance of the clothing industry provided a substantial liftoff to the overall index, several other manufacturing segments continued to struggle, suggesting that the recovery remains uneven.

"The manufacturing sector had a difficult fiscal year," says Dr. Zahid Hussain, an independent economist.

He goes on to say that industrial activity contracted in several months amid political uncertainty, the national elections and the fallout from geopolitical tensions, including the crisis in the Middle East centred on Iran.

Some industries are benefiting from stronger demand and export opportunities, while others continue to face subdued consumption, high production costs, financing constraints or weak investment.

The sharp rise in June, therefore, needs to be viewed in the context of the sector's performance over the entire fiscal year rather than as evidence of a fully established recovery.

The sector recorded negative growth in October, November, December, February, March and May. January and another month recorded virtually flat performance.

As a result, the strong June expansion came after months in which manufacturers faced weak demand, uncertainty over investment and disruptions to business activity.

Against this backdrop, the June increase of 14.5 per cent is significant.

It marks a sharp turnaround from the contractionary trend seen during much of the fiscal year and could indicate that manufacturers are responding to improving business conditions and stronger external demand, particularly for export-oriented products.

Among the 23 major manufacturing groups, a number of industries recorded noteworthy performances during June. The goodies include food products, leather, chemicals, pharmaceuticals, rubber and plastics, basic metals, electrical equipment, machinery, motor vehicles, other transport equipment, furniture and other manufacturing.

The performance of these industries points to some degree of breadth in the June recovery, although the dominant contribution from garments means the overall picture remains heavily influenced by one sector.

Several industries, meanwhile, continued to perform poorly. Among the baddies named are beverages, tobacco, wood products, paper and paper products, fabricated metal products, computers and electronics, and printing.

Bangladesh Bank Governor Mostaqur Rahman has said 25% of loans under its low-cost, easy-term pre-finance schemes would be disbursed this month, with full disbursement completed by December.

The impact of the low-cost financing on the economy would become visible next year, he said at a programme titled "A Cashless Ecosystem for Financial Inclusion" organised by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) in Dhaka today (3 September).

Mostaqur said agriculture and small and medium enterprises had been given priority under the pre-finance schemes, with a particular focus on reaching borrowers in rural areas.

"We will disburse 25% of the funds under the schemes this month and complete the disbursement by December. Its impact on the economy will be visible next year," he said.

The Bangladesh Bank earlier announced a Tk60,000 crore "Stimulus Package-2026" to facilitate credit flow to the private sector and support economic expansion.

Speaking about the Bangla QR payment system, the governor at the event said several large companies had sought an extension before its implementation deadline, but the central bank had refused to grant additional time.

"I had made it clear that not a single extra day would be given. Had they failed to comply, the regulator would have shut them down," he said. The government will make Bangla QR codes mandatory for obtaining trade licences in the future, he added.

According to the governor, the number of Bangla QR merchants has increased from around 8 lakh when the system was launched to 32 lakh currently.

He said wider adoption of Bangla QR could help curb extortion and increase government revenue by bringing more transactions into the formal financial system.

On inflation, Mostaqur said persistent high inflation had previously limited the scope for cutting the policy interest rate. He said he had examined inflation data and found scope for improvement in the way the data were generated.

"There was pressure because inflation was so high that the policy rate could not be reduced," he said, adding that inflation had not fallen as expected partly because of price pressures in two major products, without specifying them. He expressed optimism that inflation could eventually be brought down to around 7%.

Bangladesh’s fossil fuel import bill could rise by up to USD 2.8 billion in 2026, adding pressure on the country’s economy and raising energy security concerns as the current supply crisis risks deepening long-term dependence on imported gas, a new analysis by international research group Zero Carbon Analytics (ZCA) showed.

ZCA estimates that the additional imported fossil fuel spending in 2026 is equivalent to the cost of installing around 8 GW of rooftop solar, enough to increase generation capacity by around 25% on Bangladesh’s current 32 GW power grid.

Bangladesh’s LNG imports between January and August 2026 were nearly 13% lower than during the same period in 2025.

The sharpest decline came between July and August, when imports plunged by around 83%, from 0.63 million tonnes to 0.11 million tonnes, amid disruptions to supplies through the Strait of Hormuz.

But lower imports have not meant lower costs. If oil, gas and coal prices remain at the January–August average for the rest of the year, ZCA estimates Bangladesh’s fossil fuel import bill could be around 30% higher than in 2025.

The additional cost would be equivalent to around 10% of Bangladesh’s trade deficit and could add pressure on the taka, inflation and borrowing costs. If current fuel prices persist, ZCA estimates the country’s import cover could fall from 5.7 to 5.2 months, it said.

Around 64% of Bangladesh’s electricity generation depends on gas, leaving the power system highly exposed to LNG supply disruptions.

On 11 August, the power supply shortfall reached 3,592MW - around 20% of demand at the time.

The supply crunch is already affecting households and major industries. Some rural areas have reportedly experienced power outages lasting eight to 10 hours a day.

Bangladesh’s exposure reflects its growing reliance on imported energy. In 2023, around 46% of the country’s total energy supply was imported, while imports met 65% of its power needs in FY2024–25.

Nearly two-thirds of Bangladesh’s LNG supplies in 2025 passed through the Strait of Hormuz.
Doubling down on imported gas

To address immediate shortages, Bangladesh has sought LNG from multiple suppliers and the spot market.

The government approved two spot LNG cargoes for August and September and procured another eight cargoes from suppliers in the UK, Australia, Malaysia and Oman. It has also sought additional diesel supplies from India.

At the same time, Bangladesh is making longer-term commitments to imported gas, including an agreement to purchase 117 LNG cargoes from the United States between 2026 and 2038.

Long-term contracts, however, do not eliminate supply risks. Three major LNG suppliers to Bangladesh have declared force majeure on contractual obligations amid the current crisis, while the International Energy Agency projects a cumulative global LNG supply loss of around 140 billion cubic metres through 2030.

ZCA’s analysis points to rooftop solar as one option for reducing Bangladesh’s exposure to imported fuels and international price volatility.

Renewables accounted for just over 5% of Bangladesh’s electricity generation in 2025, with installed renewable capacity reaching 1.49GW.

According to IEEFA, a 1MW rooftop solar installation could save around $180,000 a year in imported fuel costs.

Bangladesh needs to add around 760MW of renewable energy capacity each year through 2030 to meet its 20% renewable electricity target. Yet only 358MW of renewable projects were under construction as of February 2026.