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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Turning climate vulnerability into negotiating power

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

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

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

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

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

Climate finance: Access is not the same as adequacy

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

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

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

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

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

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

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

Carbon trading must not become the next fashionable promise

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

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

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

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

Learn from the implementation failures of the past

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

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

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

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

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

Bangladesh needs negotiators, not merely delegates

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

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

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

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

Diplomacy can multiply Bangladesh's influence

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Banks cautious despite low-cost central bank funding

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

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

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

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

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

Other refinancing schemes show mixed performance

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bangladesh's foreign exchange reserves stood at US$36.39 billion, according to the latest data released by Bangladesh Bank (BB) on Saturday.

Reserves calculated under the IMF's BPM6 methodology stood at US$31.58 billion.

The government plans to introduce a single online portal for issuing trade licences and a coordinated inspection system to reduce administrative delays, costs and harassment for businesses, Commerce Minister Khandakar Abdul Muktadir has said.

The government is also considering extending trade licence validity and replacing the existing licence with a "business registration certificate" or a similar document to simplify procedures and improve service delivery, he informed.

Speaking at the first meeting of the National Task Force on "Deregulation and Business Facilitation" at the Finance Division conference room in the Secretariat today (17 October), the minister stressed the need to remove unnecessary barriers to business operations and create a more investment-friendly environment.

The meeting, chaired by Finance and Planning Minister Amir Khosru Mahmud Chowdhury, reviewed progress on initiatives to reduce business costs, remove unnecessary regulations, simplify administrative procedures and improve conditions for domestic and foreign investment.

Currently, trade licences are issued separately by union parishads, municipalities and city corporations. Under the proposed system, businesses would be able to submit applications and required documents, pay fees and obtain licences online through a single portal, without visiting the relevant offices.

The task force also discussed simplifying the renewal of work permits and security clearances for foreign employees.

Muktadir said foreign nationals working in Bangladesh are generally employed by legitimate, registered businesses that pay taxes and whose managing directors or directors are legal citizens of the country.

He said it was unacceptable for such companies to face unnecessary complications in renewing security clearances despite submitting applications and required certifications.

The minister called for discussions and coordination with the Home Ministry to make the renewal process more transparent, efficient and straightforward.

Joint inspections planned

The government is also planning to introduce a coordinated inspection system under the leadership of the Invest Bangladesh Authority to reduce repeated inspections by different agencies.

Under the proposed arrangement, inspections covering building safety, fire safety and environmental compliance would be conducted jointly on a pre-scheduled date, with representatives of the relevant agencies and the Invest Bangladesh Authority participating.

The initiative is expected to reduce the need for multiple visits to the same establishment, saving businesses time and money while reducing administrative hassles.

The meeting identified five priority sectors for reviewing and simplifying business-related approvals, permits and licences, where delays and overlapping responsibilities among agencies have created obstacles. The initiative will gradually be expanded to other sectors.

Muktadir stressed the need to eliminate unnecessary restrictions, lengthy approval procedures and poor coordination among government agencies.

He urged the relevant authorities to work together to ensure transparent, accountable and efficient public services for investors.

Focus on regulatory reform

The meeting was attended by task force members, including Environment, Forest and Climate Change Minister Abdul Awal Mintoo, Law Minister Asaduzzaman and Invest Bangladesh Chairman Ashik Chowdhury.

Senior officials from the National Board of Revenue, Bangladesh Securities and Exchange Commission, Finance Division, Ministry of Shipping and the Registrar of Joint Stock Companies and Firms also attended. Federation of Bangladesh Chambers of Commerce and Industry President and other senior officials were present.

The task force emphasised administrative reforms, expanded digital services and stronger coordination among government agencies to make business and investment services faster and more accessible.

The government expects the proposed measures to reduce the time and cost of doing business and strengthen Bangladesh's investment climate.

Businesses have identified at least 107 obstacles to improving the ease of doing business in Bangladesh, with customs and VAT-related issues accounting for the largest share at 37.

The issues span several government agencies, including the Finance Ministry, Commerce Ministry, customs and tax authorities, Environment Ministry, Bangladesh Bank and Home Ministry.

Business leaders raised the concerns at the first meeting of a committee on ease of doing business yesterday, attended by Finance and Planning Minister Amir Khosru Mahmud Chowdhury, Commerce Minister Khandakar Abdul Muktadir and other ministers.

Sources said a 22-member committee, comprising representatives from the government and private sector, has been formed following the directives from the prime minister to identify barriers to business and coordinate efforts to remove them.

Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association, told TBS that 107 issues had been identified, including 37 related to customs and VAT, with some already under consideration for resolution.

Babu said the first meeting had raised expectations among businesses that long-standing problems would be addressed.

Progress will be reviewed at the next meeting, he added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said businesses faced major difficulties involving customs, bonded warehouses, VAT and income tax.

These include alleged arbitrary decisions by customs officials over harmonised system codes and product valuation, delays and harassment during product inspections, seeking illicit financial facilities during audits of bonded-warehouse licence holders, and complications in approving raw material entitlement, the business leader, who was not present at the meeting, told this newspaper over a mobile phone.

He said the problems had been discussed for years but had seen little meaningful resolution.

Hatem said the committee's formation under the prime minister's directive could strengthen accountability and help ensure effective action to remove long-standing barriers to business.

Rupali Haque Chowdhury, president of the Foreign Investors' Chamber of Commerce and Industry, said delays in issuing work permits and processing visas remained major concerns, particularly involving the Home Ministry.

Slow automation at the National Board of Revenue, delayed tax refunds and harassment of compliant companies through audits were also raised at the meeting, the business leaders said.

They also highlighted difficulties and delays in obtaining visas and work permits for foreign nationals.

Businesses welcome quick measures

Meeting sources said the government had directed relevant agencies to address some issues promptly. Officials are expected to present a detailed progress report at the next meeting, planned within a month.

Rupali Chowdhury said one immediate measure would allow industrial facilities to begin operations after receiving the necessary approval, without waiting for separate fire safety and environmental clearances.

Under the proposed arrangement, the relevant departments would conduct inspections in coordination and submit their reports within a specified timeframe, she said.

She said the move could reduce delays and make business operations easier.

Rupali Chowdhury added that applications could be deemed approved if the relevant authorities failed to make decisions within the stipulated timeframe.

Hatem said the committee's formation under the prime minister's directive could strengthen accountability and help ensure effective action to remove long-standing barriers to business.

Dhaka is preparing to seek $100 million in fresh sovereign equity from Saudi Arabia to recapitalise the Saudi-Bangladesh Industrial and Agricultural Investment Company Limited (SABINCO), matching its own proposed contribution, according to official documents.

In this regard, Foreign Secretary Asad Alam Siam, in a letter dated October 5, proposed the finance minister write to his Saudi counterpart, enclosing the draft letter and a strategic paper ahead of the prime minister's possible visit to Riyadh.

The foreign ministry said with regard to the prime minister's possible visit, taking up the initiative quickly could create an opportunity for positive consideration by the Saudi authorities.

According to the letter, the proposed investment areas are aligned with the Saudi Vision 2030.

The draft is accompanied by a strategic paper titled "Capital Expansion, Bilateral Equity Recapitalisation and Joint Sovereign Guarantee Framework (2026-2030)" and prepared in consultation with SABINCO.

It had been provided to the finance minister to take the next course of action, including necessary approval in this regard, a senior official of the Finance Division said last week.

According to the letter, dated October 1 and drafted by the foreign ministry, from Finance Minister Amir Khosru Mahmud Chowdhury to his Saudi counterpart Mohammed bin Abdullah Al-Jadaan, the government has decided to inject $100 million in fresh sovereign equity into the company.

The minister invited Saudi Arabia to make an equal contribution, which would raise the total recapitalisation package to $200 million.

Established in 1984 as a 50:50 sovereign joint venture between Bangladesh and Saudi Arabia, SABINCO has maintained a sound record of commercial operations and development financing over four decades, the letter said.

The proposed capital injection is expected to enhance SABINCO's capacity to finance investments in renewable energy, agro-processing and cold-chain infrastructure, pharmaceuticals and active pharmaceutical ingredients (APIs), healthcare, advanced manufacturing, and other productive sectors, officials at SABINCO believe.

The recapitalisation would also help the company mobilise additional concessional financing from multilateral and Arab development institutions, thereby leveraging the proposed contributions of the two governments, according to the document.

The draft letter outlines several strategic benefits for Saudi Arabia from the proposed investment.

Agro-processing and cold-chain projects in Bangladesh could help ensure reliable food supplies to the Saudi market and support the kingdom's food security objectives, it says.

Expanded pharmaceutical and API production could also create supply opportunities for Saudi drug companies, while SABINCO could act as a local financing and co-investment partner for Saudi firms seeking to expand their presence in Bangladesh and the wider South Asian market, the letter says.

The foreign ministry said in view of the possible visit by the prime minister to Saudi Arabia, an early move on the proposal could create an opportunity for favourable consideration by the Saudi authorities.

The ministry would arrange to send the letter to the Saudi finance minister once the Bangladesh finance minister approves and signs it, according to the correspondence. On October 7, the foreign ministry sent the documents to Finance Division Secretary Dr Md Khairuzzaman Mozumder to take necessary steps.

Bangladesh is going to observe the International Day for Eradication of Poverty today (Saturday) with a worsening poverty situation, as prolonged economic slowdown, persistent inflation and shrinking employment opportunities push more people below the poverty line.

The World Bank (WB) estimates that the country's national poverty rate rose to 22.5 per cent in fiscal year (FY) 2025-26, up from 18.7 per cent in 2022, reversing part of the progress Bangladesh made in reducing poverty over the past decade.

According to the WB's October 2026 Bangladesh Development Update report, around 2.1 million additional people fell below the international poverty line during last FY2026.

The report also warns that nearly 62 million Bangladeshis remain vulnerable to falling into poverty following an economic or personal shock.

The findings came ahead of October 17 (today) observed globally as the International Day for the Eradication of Poverty, highlighting the growing challenge facing policymakers as the country struggles to restore economic growth, protect household purchasing power and generate adequate employment.

The United Nations designated the day in 1992, though the date traces back to 1987, when over 100,000 people gathered in Paris at the Trocadéro to honour victims of extreme poverty. The latest estimates indicate that Bangladesh's poverty has increased for a fourth consecutive year, reflecting the combined effects of elevated living costs, weak labour demand and sluggish economic activity.Economic analysis reports

The WB's estimate of 22.5 per cent is based on its modelling and should not be confused with a new official household poverty survey.

The Bangladesh Bureau of Statistics (BBS), in its Household Income and Expenditure Survey (HIES) 2022, put the national poverty rate at 18.7 per cent and extreme poverty rate at 5.6 per cent.

The BBS survey had recorded a significant decline in poverty from 24.3 per cent in 2016 and 31.5 per cent in 2010, demonstrating the progress made before the recent economic difficulties.

However, the World Bank's latest assessment suggests that the gains have come under increasing pressure.

According to the WB, persistent inflation has emerged as a major threat to poverty reduction, particularly for low-income households that spend a large share of their earnings on food, housing, transport and other essential items.

Although average inflation eased to 8.7 per cent in FY2026 from around 10 per cent in FY2025, prices remained high, continuing to erode the purchasing power of households whose incomes have failed to keep pace, the Bank said.

Employment fell by nearly two million between 2023 and 2024, while a further decline of around 0.8 million was expected in 2025, according to the bank's labour-market assessment, the WB said.

Industrial activity has also suffered from shortages of gas and electricity, forcing some businesses to cut production, reduces working hours or lay off workers. The resulting loss of earnings has left many households more exposed to rising living costs.

Bangladesh's economic growth slowed to 3.4 per cent in FY2026, according to the World Bank's October update, down from 3.5 per cent in FY2025 and 4.2 per cent in FY2024.

The slowdown has weakened the economy's capacity to generate the jobs and income growth needed to reduce poverty.

Bangladesh has made substantial progress in reducing poverty between 2010 and 2022. The World Bank's 2025 Poverty and Equity Assessment said the national poverty rate fell from 37.1 per cent in 2010 to 18.7 per cent in 2022, lifting approximately 34 million people out of poverty.

Extreme poverty declined from 12.2 per cent to 5.6 per cent over the same period.

But the assessment also found that the pace of poverty reduction slowed after 2016 and economic growth became less inclusive, with income gains increasingly favouring better-off households.

The bank estimated that around 62 million people-roughly one-third of the population-were vulnerable to falling back into poverty because of illness, natural disasters, job losses or other unexpected shocks.

The latest deterioration reinforces concerns that progress in poverty reduction remains vulnerable when growth fails to translate into secure employment and sustained improvements in real incomes.

Expressing concern over the effectiveness of government social protection programmes, the WB said Bangladesh operates numerous social assistance schemes, subsidies and cash-transfer programmes, but weaknesses in targeting mean that support does not always reach the households most in need.Economic analysis reports

The bank's latest assessment says the country's social protection system remains fragmented, with overlapping programmes and inadequate benefits limiting its ability to protect vulnerable people.

Evidence from 2022 showed that half of the poorest households did not receive any social assistance benefits, while 35 per cent of the richest households received such support.

The World Bank has urged the government to improve the targeting of cash transfers, consolidate fragmented programmes and strengthen assistance for poor and vulnerable households.

The World Bank has identified productive employment as central to restoring Bangladesh's poverty-reduction momentum.

Its poverty assessment calls for more and better-paid jobs, particularly for young people, women and vulnerable workers, alongside stronger agricultural value chains, improved connectivity and a more supportive business environment.

The challenge is significant for a country where millions of young people enter the labour market and where industrial expansion, private investment and employment generation have weakened.

Economists and development experts have long argued that sustained poverty reduction requires more than economic growth alone.

Changes to customs measures introduced in the FY2026-27 budget are expected to generate an additional Tk 35 billion in import-tax revenue to contribute to an ambitious target.

The gain is estimated despite estimated revenue losses from duty-and tax concessions.

According to a recent estimate by the National Board of Revenue (NBR), the budgetary changes are projected to generate the gross revenue gains from increases in customs duty, regulatory duty (RD), supplementary duty (SD) and value-added tax (VAT).

Among the revenue-enhancing measures, increases in regulatory duty are projected to contribute the largest share -- Tk 13.08 billion. Supplementary duty increases are expected to generate Tk 6.94 billion, followed by customs duty at Tk 3.07 billion and VAT at Tk 1.11 billion.

However, adjustments to minimum values for imported goods are estimated to reduce revenue by Tk 17.75 billion, an internal document, according to a document prepared by a customs taskforce and recently submitted to finance and planning adviser Rashed Al Titumir.

The estimates indicate a net revenue gain from the combined effects of the budget revisions, despite concerns over extensive tax exemptions.

The data show the customs wing of the NBR would lose a total of Tk 24.22 billion in revenue, including adjustments in MV, due to offering tax waivers in the budget.

The NBR has prepared the estimates to present the revenue -mobilisation outlook at the ongoing discussions with the International Monetary Fund (IMF) in Bangkok, Thailand, officials said.

A senior NBR official said that despite repeated recommendations for reducing dependence on import taxes, the government has set an ambitious revenue target for the customs wing for the current fiscal year, to contribute to the national budget of over Tk 9.0 trillion.

For FY2026-27, the government has set a customs revenue target of Tk 1.57 trillion, up from Tk 1.12 trillion in FY2025-26, representing an increase of around 40 per cent.

Customs revenue grew by nearly 12 per cent in the previous fiscal year.

Trade economist Dr Masrur Reaz says Bangladesh's economic growth is expected to slow to dip below 3.5 per cent, according to projections by the IMF, and such slower growth will likely dampen import demand, making the government's ambitious revenue targets, particularly the projected 40-percent growth in customs duty collection, unrealistic.

"Although higher prices of imported fuels and gas may generate more ad valorem taxes, declining import volumes could offset the gains. Moreover, some state-owned entities record tax liabilities in their accounts but do not actually pay the taxes, creating a gap between assessed revenue and actual collection," says Mr Reaz, founder-chairman of Policy Exchange Bangladesh.Buy Maps

Bangladesh's heavy reliance on customs duties for revenue growth is also inconsistent with international best practices and the country's preparations for graduation from the least -developed-country (LDC) category, he points out.

"The government should gradually reduce its dependence on tariffs ahead of graduation rather than maintain high tariff barriers or remove them abruptly, which could create economic disruptions," he suggests.

The customs wing estimates that revenue collection would reach Tk 1.23 trillion through natural growth, leaving a substantial gap to be bridged through policy changes and other revenue-enhancing measures.

The customs wing has also projected the recovery of Tk 200 billion in revenue arrears stuck with government agencies and private organisations.

Of this, the NBR expects to collect Tk 50 billion by resolving cases involving bond licence-holders.

Another Tk 35 billion is projected to come from intelligence operations, crackdowns and preventive measures against the misuse of bonded-warehouse facilities.

The customs wing expects to generate a further Tk 17 billion through post-clearance audits, auctions of pending goods, customs valuation and assessment measures.Economic analysis reports

The senior official, however, described the projected additional revenue as insignificant compared with the ambitious target set for the current fiscal year.

The increases in import taxes cover 171 products, identified by their Harmonised System (HS) codes, across the four tax categories. These include 61 codes for regulatory duty, 33 for supplementary duty, 53 for customs duty

and 24 for VAT.

In contrast, adjustments to minimum values for 210 goods are estimated to reduce revenue by Tk 17.75 billion, offsetting a substantial portion of the gains expected from higher duties and VAT.

"Taxing imports is effectively taxing exports, as it creates an anti-export bias. Consumers in the domestic market are also bearing the brunt of higher prices. This conspiracy against trade must end," said Dr Zaidi Sattar, chairman of the Policy Research Institute of Bangladesh (PRI).

Bangladesh’s garment exports to Poland are rising as the Russia-Ukraine war disrupts direct trade with Russia and buyers shift sourcing from China, even as shipments to several major markets face pressure.

Garment exports to Poland grew 9.8 percent year-on-year to $1.86 billion in fiscal year 2025-26 (FY26), according to Export Promotion Bureau (EPB) data.

In contrast, Bangladesh’s total garment exports fell 1.64 percent during the fiscal year.

The slowdown has continued in major destinations. Bangladesh’s garment exports to the US fell 5.3 percent in the first half of 2026, while shipments to the European Union declined 11.67 percent in the first eight months, according to World Bank and Eurostat data.

Industry leaders attribute the growth in exports to Poland partly to Polish buyers re-exporting garments to neighbouring Russia, where sanctions-related payment difficulties have complicated direct trade.

They also cite demand for basic garment items and opportunities created by Chinese suppliers losing orders.

A GROWING MARKET

Bangladesh exported garment items worth $1.38 billion to Poland in FY21, with the amount rising to $2 billion in FY22, according to EPB data.

Exports fell to $1.40 billion in FY23 before recovering to $1.54 billion in FY24 and $1.69 billion in FY25.

In contrast, garment exports to Russia have declined since the war began in February 2022.

Before the war, Bangladesh exported more than $665 million worth of garment items to Russia in FY21, with industry players considering it as a rising market for Bangladeshi apparels.

Exports to the country have since continued to fall, standing at $257.26 million in FY26.

POLAND AS A ROUTE TO RUSSIA

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said a significant volume of garment items was being re-exported from Poland to Russia.

Before the Russia-Ukraine war, Turkish traders also imported Bangladeshi garments for re-export to Russia, he said. Exports to Turkey declined after the country imposed a 17 percent duty on Bangladeshi garment items in 2011, according to him.

After the war began, Polish importers started re-exporting garments to Russia, contributing to the growth in Bangladesh’s exports to Poland, said Mahmud.

Salah Uddin Ahmed, managing director of IFS Texwear (Pvt) Ltd, which exports nearly $2 million worth of knitwear a month, also said some Polish buyers sourcing garments from Bangladesh also re-export products to Russia.

He, however, said he did not have specific evidence confirming that the garments being re-exported to Russia were sourced from Bangladesh.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Poland could serve as a third country for exporting garments to Russia.

Western sanctions imposed after Russia’s invasion of Ukraine restricted several Russian banks’ access to the SWIFT international financial messaging system. The restrictions complicated some cross-border payment arrangements, making it harder for Bangladeshi exporters to receive payments from Russian buyers.

The war has also disrupted payments involving buyers linked to Russia. 28 Bangladeshi garment exporters have been struggling to recover $5.2 million from a Polish buyer for nearly two years, said Mijanur Rahman, managing director of Fabrica Knit Composite Ltd and a vice-president of the BGMEA.

Mijanur, who has been coordinating efforts to resolve the payment issue, said the buyer’s business had been disrupted by the war.

CHINA’S LOST ORDERS, BASICWEAR DEMAND

Exporters say the rise in shipments to Poland is not solely linked to the Russia-Ukraine war.

According to Mijanur, the loss of work orders by Chinese suppliers was one of the reasons behind the increase in Bangladesh’s garment exports to Poland.

Demand for basic garment items in the market was also strong, he added.

IFS Texwear’s Salah Uddin, meanwhile, noted that Poland was a growing market for Bangladeshi exporters because they enjoy zero-duty access under the European Union’s trade arrangements.

The duty advantage, combined with demand for basic garments and possible shifts in sourcing from China, has supported Bangladesh’s exports to Poland, exporters said.

On support for young entrepreneurs and talented youths, Prime Minister Tarique Rahman has said the government is working on plans to launch a startup fund worth Tk 5 billion (Tk 500 crore).

The prime minister on Saturday urged young people to take the lead in building a Bangladesh for all, saying national interests must come first to ensure the welfare of every citizen.

“Your goal should be Bangladesh first and Bangladesh for all. Young people must come forward to build such a Bangladesh,” he said.

The prime minister was speaking at the Youth Volunteer Award 2026 and Grant Distribution ceremony organised by the Ministry of Youth and Sports at the Shapla Hall of the Prime Minister’s Office in Tejgaon, reports UNB.

Highlighting the contributions of young people across the country, he said many youths are voluntarily helping others and standing beside people in times of need alongside their studies and professional responsibilities.

Tarique Rahman described their initiatives as important for the country and urged them to use their energy, courage, talent and initiative for national development and public welfare.

Addressing the award recipients, he said young people play a crucial role in advancing a country, noting that most athletes who succeed in competitions such as the Olympics are young.

The prime minister also referred to the War of Liberation and the 2024 mass uprising, saying while senior people might have contributed their wisdom, ideas and advice, young people played a significant role on the ground.

He said the government is working to implement the pledges made before the election, noting that those commitments are now not only the government's but also the people's.

He said the country can progress faster by harnessing young people's talent, innovative thinking and enthusiasm.

The prime minister urged them to look beyond their personal development and consider the welfare of all citizens.

At the ceremony, Tarique Rahman presented the Youth Volunteer Award 2026 to 15 young volunteers and representatives of youth organisations in recognition of their outstanding contributions to voluntary activities in different fields. Each recipient received a Tk 100,000 cheque, a crest and a certificate.

The government also provided grants of Tk 200,000 each to 432 youth organisations to strengthen their activities.

Three award recipients shared their experiences of voluntary work, while State Minister for Youth and Sports Md Aminul Haque spoke about various government plans for young people.

Prime Minister’s Political Adviser Mirza Abbas was present at the event. Youth volunteers from all 64 districts joined the programme online.

Labour and Employment Secretary Md. Abdur Rahman Tarafder today (17 October) said that a wage board will be formed soon to determine new wages for the workers in the garment sector.

He said that the process of nominating representatives from both the workers and the employers for the wage board is underway.

Expressing the hope that a gazette notification could be published within this month, he said once the nominations are received from the respective parties, the Ministry will issue the gazette, following which the board will commence its operations.

The labour secretary made these remarks while talking to the state-run news agency, BSS.

He explained that the wage board will consist of a chairman, an independent member, a representative for the workers and a representative for the employers. Additionally, representatives specifically from the relevant industrial sector one from the workers and one from the employers will be included. In the case of the ready-made garment (RMG) industry, representatives from this specific sector will serve in the board.

The labour secretary noted that in determining wages for RMG workers, factors such as Bangladesh's overall economic situation, wage rates in neighboring countries and the ground-level realities within various factories will be taken into account.

The board will review these aspects before reaching a decision on wage levels; in other words, the Ministry will not unilaterally set the wage amount through administrative action, he added.

Abdur Rahman Tarafder further mentioned that the Department of Labour has already been instructed to initiate the formation of the wage board. The department has, in turn, requested both the workers' and employers' sides to nominate their respective representatives. Upon receiving these nominations, the Ministry will issue the official gazette.

Regarding the ongoing labour unrest, he said that the government maintains a positive stance toward the workers' demands and is engaged in regular dialogue with them. Labour leaders have also been kept informed about these developments.

The secretary added that the government has undertaken various initiatives to safeguard the workers' rights. Tripartite discussions involving representatives from the workers, employers and the government are going on now concerning the Labour Rules, with several meetings already held on the matter.

The labour secretary informed that a meeting of the National Tripartite Consultative Council (TCC) will be held on 27 October, chaired by the minister of Labour and Employment. The meeting will feature detailed discussions on the current labour situation including the formation of a wage board and the drafting of labour rules with participation from representatives of workers, employers and the relevant ministries.

He said, alongside addressing the demands of the workers, the government remains vigilant to ensure that no external vested interest groups can incite unrest in connection with the ongoing protests.

The Bangladesh Export Processing Zones Authority (Bepza) attracts around $3 million in investment per acre of land and generates an annual return of Tk13.82 crore through the efficient use of limited land, the authority said at an investor meeting in Chattogram today (17 October).

Despite challenging conditions, Bepza signed investment agreements with 36 companies in FY26, while exports from its zones reached $8.41 billion, up 2.22% from the previous fiscal year.

The figures were presented at the "Meet the Investors" event at Radisson Blu in Chattogram, attended by more than 100 local and foreign investors from the Chattogram EPZ, Karnaphuli EPZ, Cumilla EPZ, Bepza Economic Zone-1 and Bepza Economic Zone-2.

Bepza Executive Chairman Major General Mohammad Moazzem Hossain said investors had kept economic activity going despite disruptions to energy markets and supply chains caused by global trade uncertainty and geopolitical tensions, as well as power and infrastructure constraints.

"Communication is the highest form of respect. Today's event will help us strengthen our partnerships, listen directly to investors, understand their problems and expectations, and find ways to make our investment environment more competitive and business-friendly," he said.

Praising the skills of export workers, Moazzem said the zones produce a wide range of goods, including footwear, garments, jewellery, eyewear, bags, safety equipment, wedding dresses and uniforms for peacekeeping missions.

He urged investors to expand their operations into Bepza Economic Zone-1, Bepza Economic Zone-2, Jashore EPZ and Patuakhali EPZ, saying the authority would continue to support their businesses.

Bepza Member (Investment Promotion) Md Tanvir Hossain presented the authority's performance in FY26, highlighting export growth, employment, land utilisation and progress in developing new zones.

In a separate presentation, Bepza Additional Executive Director (Enterprise Services and Industrial Relations) Md Nazmul Islam Bhuiyan outlined measures to improve worker welfare and labour standards.

He highlighted 45 online services, a 24-hour helpline (16128) and the implementation of the Employment Injury Scheme. He also discussed proposed amendments to the Bangladesh EPZ Labour Act, 2019, to bring it in line with international labour standards.

An open discussion followed, during which investors and Bepza officials exchanged views on operational challenges, services and labour laws.

Earlier, on 10 October, Bepza launched three specialised country desks in Dhaka for investors from China, South Korea and Japan.

Established in 1980, Bepza oversees eight export processing zones and two economic zones, which have attracted around $7.5 billion in investment from investors across 38 countries. Cumulative exports from the zones have reached approximately $130 billion.

The authority accounts for around 20% of Bangladesh's total exports and 19.17% of its total foreign direct investment (FDI), according to the information presented at the event.