The Bangladesh Bank has extended the Foreign Currency (FC)-Taka swap facility to exporters operating in the country's specialised economic zones, allowing them to access short-term Taka liquidity while retaining their foreign currency holdings.

The central bank issued a circular today (13 July) permitting Authorised Dealers (ADs) to execute FC-Taka swap arrangements against unencumbered balances maintained in eligible foreign currency accounts of exporters.

Under the facility, exporters will be able to meet local operational expenses, including wages, utility bills and other working capital needs, without permanently converting their foreign currency holdings. The measure is intended to improve liquidity management while preserving foreign exchange for future international obligations.

The facility will be available to exporters operating in Export Processing Zones (EPZs), Private Export Processing Zones (PEPZs), Economic Zones (EZs) and High-Tech Parks (HTPs).

The latest directive expands the scope of FE Circular No. 41, issued on 3 November 2025, which had restricted FC-Taka swap arrangements to balances held in 30-day pool and Export Retention Quota (ERQ) accounts.

Bangladesh Bank said the measure also complements FE Circular No. 31, issued on 1 July 2025, under which industrial enterprises in specialised zones were allowed to maintain the foreign currency accounts that are now eligible for the swap facility.

The central bank said all other provisions of the earlier circulars will remain unchanged.

Bangladesh’s pharmaceutical industry is urging the government to review the country’s medicine pricing policy, saying years of limited price adjustments have squeezed profitability, discouraged investment in new medicines and put increasing pressure on smaller drug makers.

In a June 30 letter to Health and Family Welfare Minister Sardar Md Sakhawat Husain, the Bangladesh Association of Pharmaceutical Industries (Bapi) sought an urgent meeting to discuss the challenges facing the sector and propose policy support.

The association said rising production costs, persistent inflation, foreign currency shortages and constraints in the pricing regime have left many manufacturers struggling to survive.

Bangladesh has 258 pharmaceutical manufacturers, but the market has become highly concentrated, according to Bapi. Just 20 companies account for about 94 percent of total production, while the remaining 238 produce only 6 percent. Citing data from IQVIA, a leading global healthcare data company, it said 64 of the top 100 pharmaceutical companies recorded negative growth in 2025.

Bapi also rejected claims that medicines made in Bangladesh are expensive. It said 30 of 39 commonly used medicines are cheaper than equivalent products in India, despite local manufacturers relying heavily on imported raw materials.

Calling the pharmaceutical industry a strategic national asset, the association urged the government to introduce policies that would help restore the competitiveness of smaller manufacturers.

Industry leaders echoed Bapi’s concerns, saying the current pricing policy is discouraging investment in research and development and making it harder to introduce innovative medicines.

Abdul Muktadir, chairman and managing director of Incepta Pharmaceuticals, said Bangladesh’s pharmaceutical industry grew rapidly over the past three decades because of policy reforms that encouraged competition and investment.

He said the National Drug Policy introduced in the early 1980s shifted the industry’s focus towards essential medicines, while reforms in the early 1990s gave companies greater flexibility to set prices and expand their product range.

“The free-market approach encouraged competition,” he told The Daily Star. “As more companies entered the market, medicine prices fell while product quality improved.”

However, he said the industry’s momentum has slowed since 2016 as the drug regulator has become increasingly restrictive in approving prices for new medicines.

“If it costs Tk 10 to produce a technologically advanced medicine but the approved price is Tk 8, no company will continue investing in innovation,” he said.

According to Muktadir, companies are now less willing to introduce complex medicines that require significant investment in research and manufacturing technology. He also claimed that around 60 of the country’s roughly 100 pharmaceutical companies are struggling because of pricing constraints.

He called for a review of the current pricing framework, saying a commercially viable system is needed to sustain investment in research and development.

The industry also faces fresh challenges as Bangladesh prepares to graduate from least developed country (LDC) status.

Rabbur Reza, chief operating officer of Beximco Pharma, said Bangladesh has benefited from the World Trade Organization’s intellectual property waiver, which allows local manufacturers to produce certain patented medicines at affordable prices.

After the waiver expires, medicines introduced later will require licensing agreements with patent holders, involving royalty payments and higher costs.

While large companies may be able to negotiate such agreements, smaller manufacturers are likely to find it difficult because of limited financial capacity, he said. He urged companies to register as many eligible products as possible before the waiver expires.

Kaiser Kabir, managing director and CEO of Renata PLC, said many pharmaceutical companies are dropping low-margin medicines as rising costs and years of limited price adjustments squeeze profitability.

He said only 32 of the country’s top 100 pharmaceutical companies recorded revenue growth, while the rest posted lower sales.

“The industry has been going through a series of shocks since 2020,” he said, citing the Covid-19 pandemic, the depreciation of the taka, high inflation and disruptions to global supply chains.

Kaiser said the weaker taka has sharply increased the cost of imported raw materials, but manufacturers have not been able to fully pass on those costs because medicine prices have remained largely unchanged.

“If prices cannot reflect production costs, companies will stop making some medicines,” Kabir said.

He warned that patients could eventually have to rely on more expensive imported medicines, including products brought into the country illegally, as cheaper locally made alternatives disappear from the market.

Bangladesh's electric vehicle (EV) industry is poised to enter a new growth phase, with around Tk4,000 crore in private investments announced over the past few years expected to gather pace following incentives unveiled in the FY2026-27 budget.

From automotive manufacturers and industrial conglomerates to energy companies and filling station operators, private investors are positioning themselves for what they believe could become Bangladesh's next major manufacturing and infrastructure industry.

Industry leaders, however, say the sector's biggest challenge has shifted to ensuring reliable electricity, faster grid connections, and commercially viable charging stations.

The budget has changed the investment equation significantly, several industry leaders told The Business Standard. They added that charging stations remain a long-term business that requires policy support, quality electricity and patience.

The FY27 budget reduced import duties on EVs, introduced tax incentives for local EV manufacturing, exempted duties on charging equipment, and proposed fiscal incentives for charging station operators. The draft EV Industry Development Policy has also proposed a 10-year income tax exemption for charging station businesses.

The government has also set a target of establishing 1,200 commercial EV charging stations by 2030, with the Sustainable and Renewable Energy Development Authority (Sreda) tasked with preparing the regulatory framework and implementation guidelines.

Md Aminur Rahman, director of Sreda, said they have received a large number of applications for commercial charging stations. "We are approving applications phase by phase after technical inspections," he told TBS.

Tk4,000cr investment in pipeline

Industry insiders estimate that more than Tk4,000 crore in investments are now in the pipeline, spanning the manufacture and assembly of electric cars, motorcycles and scooters, as well as the development of charging infrastructure.

The Bangladesh Auto Industries Limited has announced the largest investment so far, committing Tk1,500 crore to establish an EV manufacturing facility in Mirsarai while simultaneously developing charging infrastructure.

Nasir Group and Akij Motors have each unveiled Tk500 crore investment plans, while Rancon Motors has committed Tk300 crore for EV assembly and charging stations.

Runner Automobiles, in partnership with EV giant BYD, is implementing a phased Tk260 crore investment to locally manufacture electric vehicles alongside charging infrastructure.

PRAN-RFL and Walton Group have each earmarked around Tk200 crore for electric mobility projects, primarily electric scooters and related infrastructure.

Several other companies, including TMSS, Progress Motors, Sena Hotel (Radisson Blu), Kazi LPG, Good Luck Filling Station, and Isha Kha Group, have either secured approval or are preparing investments in commercial charging stations.

According to Sreda, 32 commercial charging stations have received approval, but only nine are currently operational, including in Dhaka, Chattogram, Cox's Bazar, and Cumilla. Besides, thousands of home charging units have already been installed alongside newly sold EVs.

By comparison, India has 29,151 public EV charging stations, Nepal has around 400, while more than 100 stations have been licensed in Pakistan, according to available official data from the respective countries.

Sreda Director Aminur said commercial DC charging stations have already been approved for Rancon Motors and Progress Motors in Dhaka, Kazi LPG and Sena Hotel in Chattogram, TMSS along the Bogura-Rajshahi corridor and Good Luck Filling Station in Rajshahi.

"We have comprehensive guidelines covering land requirements, location, equipment quality, investment size and electricity quality," he said.

Meanwhile, the government is set to introduce 400 electric buses in Dhaka, aimed at reducing air pollution and modernising the capital's public transport system.

Transport experts have welcomed the initiative, but said the project's success will depend on developing adequate charging infrastructure, and maintenance facilities.

Power reliability, profitability remains biggest hurdles

Hafizur Rahman Khan, chairman of Runner Automobiles, said every BYD vehicle sold by the company is supplied with a home charger that can operate using a standard household electricity connection.

"Commercial charging stations are a different story," he said. "They require high-quality, uninterrupted power supply, and that remains our biggest concern."

He explained that home charging typically takes between 5-10 hours, whereas highway charging must be completed within 5-10 minutes using ultra-fast DC charging technology.

"BYD already has that technology. But Bangladesh currently lacks both the quality electricity supply and the supporting infrastructure needed to deploy it on a large scale," he said.

Establishing a conventional commercial DC fast-charging station requires an investment of around Tk1-Tk1.5 crore, while an ultra-fast charging station, including land acquisition and dedicated substations, could cost between Tk3-Tk5 crore, he said.

"After making such a large investment, operators will need years to attract enough customers to generate acceptable returns," Hafizur added.

Shahriar Hasan Utsho, co-founder of Crack Platoon Charging Solutions, said they are currently assisting dozens of businesses in establishing charging stations and obtaining regulatory approvals.

"There is strong investor interest, but everyone asks the same question: When will we recover our investment?" he said. "A DC charging station costs around Tk1-Tk1.5 crore, yet the number of EVs remains limited. No one can estimate how long it will take to break even."

He cited the example of a privately operated charging station in Bogura that sometimes goes an entire day without serving a single vehicle. "The staff remain idle because there simply are not enough EVs on the road yet," he said.

The manager of one charging station said his company invested nearly Tk70 lakh to install a 10-kW Level-2 charger, but customer numbers remain low. "This is still a new business in Bangladesh. We hope demand will gather momentum."

Sreda's Aminur acknowledged that deploying ultra-fast charging infrastructure nationwide would take time. "Given Bangladesh's current power system, we are prioritising DC fast-charging stations based on an energy-efficient model.

He said Sreda's immediate focus is to ensure uninterrupted electricity supply, and it arranges dedicated power support for charging stations depending on location and demand. Sreda is also focusing on introducing solar-based charging stations, he added.

Runner Chairman Hafizur Rahman Khan argued that private investors alone cannot build a nationwide charging network during the market's early stage.

"This business is still at a nascent stage. Initially, the government needs to take the lead by investing in charging infrastructure or providing financial support. Once the market matures and vehicle numbers increase, private investment will naturally follow," he said.

Companies build entire EV ecosystem

Runner Automobiles has established branded charging points in Dhaka, Cumilla, Chattogram, Bogura and Cox's Bazar for BYD customers while expanding technician training. The company said it has already sold more than 1,000 BYD vehicles in Bangladesh.

Samiul Hasan, chief marketing officer of Nasir Group, said, "We are investing across the entire ecosystem vehicle manufacturing as well as charging stations because we believe the market will expand significantly."

Mir Masudul Karim, managing director of Bangladesh Auto Industries, said the company's locally manufactured EVs will offer a driving range of more than 450km on a full charge and support fast charging in 30 minutes.

"We are supporting both home charging and commercial charging infrastructure alongside vehicle production," he said.

Sheetal Taslim, country lead for marketing and operations at Audi Bangladesh and Ekhon Charge, said the company has installed 150 home charging units and established five commercial charging stations across the country.

She said Ekhon Charge, Bangladesh's first and largest EV charging solutions provider, has the capability to support the establishment of charging stations anywhere in the country.

Execution now matters

A full highway charge typically costs between Tk308 and Tk759, making electric driving roughly 70% cheaper per kilometre than petrol-powered vehicles.

However, industry leaders said the next phase of Bangladesh's EV transition will depend less on investment announcements and more on execution.

According to Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI), around 6 million battery-powered three-wheelers already operate across Bangladesh, while only a few thousand electric passenger vehicles are officially registered.

"The actual number of EVs is much higher than official records. Without reliable data, planning and policymaking become difficult," he said.

He said charging infrastructures, reliable power, common technical standards, and an investment-friendly policy are essential to accelerating EV adoption.

Mohammad Wahid Hossain, chairman of the Bangladesh Energy and Power Research Council, said uninterrupted electricity would ultimately determine the industry's success.

"If EV adoption increases while electricity shortages persist, the sector cannot grow at the desired pace," he said, adding that Bangladesh also needs greater use of renewable energy and stronger coordination among government agencies.

Bangladesh stands at a defining moment in its economic journey. Having grown into a $510 billion economy, the country now aims to become a $1 trillion economy by 2034. The national budget theme, Economic Democratisation and Decentralisation: Bangladesh in the Trillion-Dollar Economic March, reflects both the scale of that ambition and the need to ensure growth creates opportunities across the country. Achieving this vision will depend on three closely linked priorities: attracting more foreign direct investment (FDI), accelerating digital transformation and deepening financial inclusion.

Bangladesh’s remarkable progress has been built on manufacturing, exports, infrastructure and the resilience of its people. The next phase of growth will increasingly be driven by digital infrastructure, AI, cloud technologies and innovation. Around the world, countries that have reached higher-income status have paired physical infrastructure with strong digital ecosystems. Today, digital connectivity is as important as roads, ports and power in driving competitiveness.

FDI plays a vital role in this transformation. Beyond capital, it brings technology, innovation, international expertise and access to global markets. These are essential for raising productivity, creating skilled jobs and supporting sustainable growth. Bangladesh’s recent investment performance offers encouraging signs. After slowing between 2022 and 2024 amid global uncertainty and foreign exchange pressures, net FDI rebounded by 39.36 percent in 2025 to $1.77 billion. The next challenge is attracting higher-value investment into sectors that will shape the future economy, including AI, cloud computing and digital services. One promising example is the proposed “Invest in Bangladesh NOW” initiative discussed between Banglalink’s parent company, VEON, and the prime minister. The initiative aims to attract $1 billion in FDI, anchored by VEON’s initial $250 million commitment. It would focus on digital banking, AI, youth skills and connectivity while using VEON’s global network to attract further investment.

Investment also brings valuable expertise. Around the world, digital financial services have transformed financial inclusion. In Kenya, M-Pesa has enabled millions to access payments, savings and credit. In India, the Unified Payments Interface has made secure, low-cost digital payments widely accessible. In Pakistan, JazzCash has expanded access to financial services and supported the shift towards a less cash-based economy. Bangladesh can build on these examples by expanding digital banking, microfinance and microinsurance. Economic democratisation also means ensuring digital opportunities reach every part of Bangladesh. A young entrepreneur in Kurigram, a farmer in Bhola or a student in Bandarban should have the same opportunities as someone in Dhaka. Expanding digital infrastructure, including next-generation technologies such as satellite-enabled direct-to-cell connectivity, can help bridge the digital divide.

Banglalink’s experience over the past two decades shows how sustained investment in connectivity can narrow that divide. As part of the VEON Group, the company continues to expand digital access while introducing services that support education, healthcare, commerce, public services, entertainment and AI-enabled solutions. Drawing on VEON’s fintech expertise, Banglalink also aims to expand digital banking, microfinance and microinsurance, helping more Bangladeshis participate in the formal economy. Together, digital connectivity and financial inclusion can boost productivity and support inclusive growth.

Bangladesh’s greatest competitive advantage remains its people. With a workforce of more than 77 million, the country has the potential to become a leading digital economy. Realising that potential will require continued investment in digital skills, AI and innovation, backed by predictable policies, transparent regulation and close collaboration between government and the private sector. Bangladesh has consistently shown its ability to exceed expectations. Reaching a trillion-dollar economy will require greater investment, world-class digital infrastructure, deeper financial inclusion, skilled workers and strong public-private partnerships. If these priorities advance together, Bangladesh can strengthen its global competitiveness while creating broader prosperity and a better quality of life for all.

The telecom regulator has upheld a Tk 3 crore administrative fine on Summit Communications Ltd, the country’s largest telecom infrastructure operator, after concluding it engaged in discriminatory bandwidth pricing.

At a recent meeting, the Bangladesh Telecommunication Regulatory Commission (BTRC) has decided to issue a formal notice instructing Summit to deposit the penalty with the regulator’s Finance, Accounts and Revenue Division within 10 working days.

The decisions were taken after reviewing a hearing report, following Summit’s challenge to the fine originally imposed last year, according to minutes of the meeting.

An investigation found that Summit charged its own International Internet Gateway (IIG) business an average of Tk 8 per Mbps for bandwidth, while charging other IIG operators an average of Tk 196.65 per Mbps, a gap officials described as “clearly discriminatory”.

The commission’s decision follows months of regulatory proceedings after inspections at Summit’s Dhaka headquarters and its Terrestrial Cable Landing Station (TCLS) in Benapole, Jashore.

As an International Terrestrial Cable (ITC) operator, Summit imports internet bandwidth from India and sells it to its affiliated IIG at prices significantly lower than competitors. As BTRC collects revenue sharing based on operators’ earnings, a lower transfer price reduces the government’s revenue.

Bangladesh’s international bandwidth flows from submarine cables or ITCs to IIGs, then through Nationwide Telecommunication Transmission Network (NTTN) operators to mobile operators and ISPs before reaching consumers. BTRC collects revenue sharing at multiple stages of this value chain.

Based on its inspection findings, the commission imposed the Tk 3 crore fine in early May last year. Summit, in response, sought a waiver and requested meetings with the regulator, prompting a series of review proceedings.

The commission first appointed a deputy director to review the appeal. After examining the case, the officer recommended upholding the penalty. Summit appealed again without paying, after which the commission appointed Commissioner (Engineering and Operations) Brig Gen (Retd) Iqbal Ahmed to conduct a fresh hearing involving both the inspection team and the company.

According to the commission’s meeting documents, the hearing officer found that Summit acknowledged the government was entitled to revenue sharing from bandwidth its ITC business supplied to its own IIG operation.

The company claimed it had been sharing such revenue based on verbal instructions from BTRC, but it could not produce any written directive or regulatory decision supporting the claim.

The hearing officer rejected Summit’s argument that no approved tariff existed for ITC operators at the time, finding the pricing violated Sections 29(Ga) and 50(1) of the Bangladesh Telecommunication Regulation Act, 2001, as well as relevant provisions of the Competition Act, 2012.

The report also noted that ITC licensing guidelines do not permit operators to provide services without commission-approved tariffs.

The report further found that although Summit operates both its ITC and IIG businesses under the same Tax Identification Number and Business Identification Number, it was still required to maintain separate revenue accounts, since the two licences carry different revenue-sharing obligations.

The hearing officer found no violations of the Infrastructure Sharing Guidelines during the inspection.

In his recommendations, Brig Gen (Retd) Iqbal endorsed the findings that Summit had breached telecommunications law, but noted the company had apologised for the violations and suggested the penalty could be reconsidered. After reviewing the report, however, the commission decided to reinstate the fine in full.

The commissioner confirmed to The Daily Star that the commission had decided to uphold the fine.

Summit Communications told this newspaper that as of yesterday, it has not yet received any official communication from BTRC regarding the reinstatement of the fine.

The company said it had clearly stated its grounds during the BTRC hearing -- that the penalty does not correctly reflect the applicable laws or factual circumstances.

“If BTRC nevertheless decides to uphold the penalty, we will pursue legal recourse available to us under the Bangladesh Telecommunication Act, 2001 and/or any applicable laws,” it said.

Noting that its ITC and IIG licences are held by the same legal entity, Summit argued that the provisioning of bandwidth between the two businesses is an internal allocation, not a commercial sale between independent entities.

“Till date BTRC has never approved any tariff or pricing methodology for bandwidth sale or allocation from ITC to IIG. In the absence of such regulatory guidance, Summit adopted the prevailing industry practice following the discussion and decision taken at the BTRC meeting held on 5 May 2021,” the company said.

The company also stated that it had reported the relevant information through the DIS Portal and paid applicable revenue sharing throughout.

“Summit acted on full transparency and after due consultation with BTRC,” it said, adding that when BTRC later took the position that such internal allocation should be based on market rate, the company complied immediately “to demonstrate our continued commitment to regulatory compliance.”

“In the absence of any BTRC approved tariff or prescribed pricing methodology for ITC to IIG bandwidth provisioning, we follow the prevailing industry practice,” it further said.

BTRC officials, speaking on condition of anonymity, said that although the ITC and IIG businesses are part of the same legal entity, they are required to hold separate licences for different services, each operating under a different regulatory framework.

“The so-called industry practice was improper. It has now been uncovered, and those involved have been penalised. No previous commissions had dared to investigate these practices before the fall of the previous government,” one official said.

Changes to the VAT-payment schedule could put immense pressure on field officials to achieve the government's ambitious VAT-collection target of Tk 2.23 trillion in the current fiscal year, according to tax officials.

Field-level VAT officials say they would effectively have only nine months of revenue reflected in this fiscal year's collection as VAT for the final quarter would be deposited in July - the first month of the following fiscal year - under the revised payment schedule.

In the Finance Bill 2027, the government has made VAT payment and VAT return submission simpler by extending payment and submission schedules to three months from every month.

It was the long-awaited demand from businesses who found the monthly compliance requirements time-consuming.

Officials say VAT zones would have to mobilise exceptionally high revenue every quarter -- and every month -- to meet the target, making the goal extremely difficult unless the government amends the provision or makes special arrangements for the current fiscal year.

The original VAT collection target for FY26 was Tk 1.86 trillion, but actual collection reached Tk 1.55 trillion.

To achieve the FY27 target of Tk 2.23 trillion, the VAT wing will have to raise collections by approximately 44 per cent over last year's actual receipts.

This means an additional Tk 680 billion must be mobilised during the current fiscal year.

VAT contributes around 37 per cent of the total domestic revenue mobilisation.

Field officials say because the revised payment schedule would effectively leave only three revenue-generating quarters within the fiscal year, the burden would be even heavier.

They estimate VAT offices would need to mobilise around Tk 743.3 billion in each of the three recognised quarters to remain on track.

Unless there is a significant expansion of economic activity, stronger VAT compliance, resolution of pending litigation, improved enforcement, and substantial gains from digitalisation, and anti-evasion measures, achieving the target will be extremely challenging, officials say.

The new target is also substantially higher than last year's original target of Tk 1.86 trillion, underscoring the government's increasing reliance on VAT to meet its overall revenue objectives.

"The last quarter is traditionally the strongest period for VAT collection, with revenue often nearly doubling compared to that of the other quarters," a senior field-level VAT official says.

"If those receipts are shifted to the next fiscal year because of the revised payment schedule, the revenue shortfall this year could be significant."

Officials note that the FY27 VAT target is around 44 per cent higher than last year's actual collection, placing unprecedented pressure on field offices.

They warn that unless the government introduces a special transition arrangement for the current fiscal year, VAT collection is likely to fall well short of the target.

However, they believe the problem would largely disappear from the following fiscal year once the new payment cycle becomes fully operational.

Former VAT officials, however, downplay the concern, arguing that the impact may not be as severe because a substantial portion of VAT is collected at source.

A former VAT member says VAT deducted at source would continue to provide a steady stream of revenue despite the change in payment timing.

Current field officials disagree with this, saying only about 30 per cent of VAT is collected at source -- primarily through government entities -- while the remaining 70 per cent depends on regular payments by businesses.

The government has set a VAT collection target of Tk 2.23 trillion for FY27, up from the actual collection of Tk 1.55 trillion in the previous fiscal year.

In parliament, Finance Minister Amir Khosru Mahmud Chowdhury said on Monday the government collected Tk 4.10 trillion in total revenue during FY26 against a target of Tk 5.03 trillion, achieving 81.6 per cent of its overall revenue goal.

According to the minister, income tax collection stood at Tk 1.42 trillion against a target of Tk 1.86 trillion, representing an achievement rate of 76.7 per cent.

VAT collection reached Tk 1.55 trillion against a target of Tk 1.86 trillion, achieving 83.7 per cent of the target.

Meanwhile, customs revenue amounted to Tk 1.11 trillion against a target of Tk 1.30 trillion, meeting 85.3 per cent of its target.

Former VAT member Farid Uddin says the changes in VAT payment schedule would not be a problem; it would rather help businesses reduce time and cut the cost of doing business. Some 95 per cent of domestic VAT comes from tobacco, mobile, and pharmaceuticals companies and VAT deducted at source, he says.

The rest of the businesses pay a negligible amount of VAT that would not affect the collection much, he adds.

Incessant rain across the country over the past week, coupled with flooding in the southeast, is threatening to push up prices of food and other essential goods.

Businesses say the downpour has disrupted the entire supply chain, from loading and unloading vessels at Chattogram port to trading at major wholesale markets and transporting goods across the country.

The monsoon rains have also submerged large areas of farmland, damaging vegetables and other crops. Getting farm produce to major urban markets has become more difficult, with vegetable prices already rising in Dhaka.

Some dry food items, including flattened rice, puffed rice, vermicelli, biscuits, noodles and dates, have become more expensive as demand has surged because of flood relief campaigns.

Businesspeople say prices of most other food items are stable for now, but prolonged disruptions could trigger wider market volatility.

Bangladesh relies heavily on imports for essential commodities such as sugar, edible oil and wheat. These bulk goods are transferred from mother vessels to lighter ships, which then carry them across the country through inland waterways.

Over the past week, rough seas and heavy rain severely disrupted the transfer of cargo from larger ships to lighter vessels.

Only five to 10 lighter vessels loaded cargo from larger ships each day over the past week, compared with the usual daily average of 40 to 50, said Gazi Belayet Hossain, president of the Bangladesh Cargo Vessel Owners’ Association.

Loading and unloading resumed yesterday morning as sea conditions improved. However, Belayet said more than 400 lighter vessels were still waiting to load cargo as of yesterday, and it would take a few days for operations to return to normal.

Meanwhile, traders at major wholesale markets in Chattogram’s Khatunganj, Chaktai and Asadganj markets said daily trading had fallen sharply because buyers from nearby districts were unable to reach the markets.

“Business has slowed because wholesale buyers from different districts are unable to come to the market,” said Aminul Haque, a wholesaler at Khatunganj.

Demand for dry food, however, has risen. Prices of chira, muri and vermicelli have increased by Tk 3 to Tk 5 per kilogramme.

The wholesale price of a 25-kilogramme sack of standard-grade flattened rice has risen to Tk 1,300 from Tk 1,200 a week ago. Puffed rice now sells for Tk 65 to Tk 68 per kilogramme, up by Tk 2 to Tk 3, while a 30-kilogramme basket of loose vermicelli has increased to Tk 1,050 from

Tk 900. Prices of dates have also risen by Tk 20 to Tk 30 per kilogramme.

“We think this is a temporary increase driven by the floods,” Aminul told The Daily Star.

Heavy rain also disrupted the loading of essential goods onto trucks, while transport shortages made the situation worse.

As many as 408 unions across Chattogram division have been affected by flooding, waterlogging and landslides. Khagrachhari has been the worst-hit district, with around 73 percent of its area affected, followed by Chattogram at 50 percent and Cox’s Bazar at 49 percent.

Road links with Cox’s Bazar, Bandarban, Rangamati and Khagrachhari have been disrupted by waterlogging and landslides in hilly areas, making it difficult to transport goods to those districts, traders said.

Despite these disruptions, businesses in Chattogram said wholesale supplies of rice, lentils, sugar and edible oil are adequate. However, the market could become volatile if the rain and flooding continue.

Like Chattogram, wholesalers in Dhaka also reported supply disruptions.

Mostafa Kamal, a vegetable wholesaler at Karwan Bazar, said supplies have fallen because of heavy rain and flooding, pushing wholesale prices up by about 10 percent compared with normal levels.

He said persistent rain has disrupted harvesting and transport, making it difficult for farmers to send produce to market.

Abu Bakar Siddique, a grocery trader at Karwan Bazar, said flooding and waterlogging have disrupted supplies of edible oil, sugar and flour.

“For the last four to five days, companies have been unable to meet even half of the existing demand,” he said.

Although wholesale prices have risen only slightly, retail prices of some essential goods, especially dry food items, have increased because of higher transport costs and supply shortages, he added.

Meanwhile, some industrial groups said flooding and waterlogging have disrupted their supply chains, making it difficult to deliver products.

SM Mujibur Rahman, head of accounts of Meghna Group of Industries, said the company usually delivers 280 to 300 tonnes of goods a day but managed only around 50 to 60 tonnes daily over the past week.

Mujibur said the situation has worsened after rainwater partially submerged the company’s depot premises in Chattogram. The company was unable to move vehicles from the depot for four days.

Md Shafiul Ather Taslim, director for finance and operation of TK Group, said the company had been struggling to secure enough transport over the past two to three days.

“When available, vehicles were unable to reach many areas due to a cut off supply network.”

He added that deliveries had been disrupted in several areas, including Rangamati, Khagrachhari, Bandarban, Cox’s Bazar, Satkania, Lohagara and parts of Sylhet city.

Taslim said the impact has not yet become significant because dealers still have enough stock available.

The government has set a target of converting at least 30% of vehicles used in Bangladesh's road transport sector into electric vehicles (EVs) by 2030 as part of its efforts to reduce carbon emissions and promote sustainable transport.

Road Transport and Bridges MInister Shaikh Rabiul Alam disclosed the plan in parliament today (13 July) while responding to an urgent public importance notice raised by ruling party lawmaker Shawkat Ara Akter from the reserved women's seat-33.

He said the government is implementing a range of policy measures to shift public transport to environmentally friendly fuels, reduce greenhouse gas emissions and build a sustainable transport system.

The minister noted that greenhouse gas emissions from vehicles, particularly carbon dioxide, are a major contributor to global warming, making the transition from fossil fuel-powered vehicles to EVs increasingly important.

Under Bangladesh's Nationally Determined Contributions (NDCs), the country has pledged to unconditionally reduce carbon dioxide emissions from the transport sector by 3.4 million tonnes by 2030. The 30% EV conversion target forms part of that commitment, he said.

To support the transition, the Road Transport and Highways Division has already formulated policies governing the registration and operation of electric vehicles.

The government has also approved duty-free imports of fully electric buses for educational institutions, while imports of such buses for other uses will be subject to a reduced 15% duty to encourage wider adoption.

Addressing demands raised by lawmakers, Robiul said bridge tolls are a revenue matter under the Finance Division, meaning the Ministry of Road Transport and Bridges cannot unilaterally waive tolls.

He added that toll concessions for smaller bridges could be considered through policy decisions in consultation with the Finance Division, but toll collection cannot be suspended solely based on requests or recommendations from individual lawmakers.

On calls to increase stoppages of intercity trains, the minister said existing policies are designed to preserve the fast-service nature of intercity rail.

Allowing trains to stop at every location would undermine their efficiency and defeat the purpose of rapid travel, he added.

China’s economy likely slowed in the second quarter after a solid start to the year. Weak domestic demand offset the boost from resilient exports during a global oil shock, fueling expectations for fresh policy stimulus.

Beijing is grappling with a deepening supply-demand imbalance. Strong industrial output, buoyed by AI-driven exports, contrasts with weakening consumption and private investment amid a prolonged property downturn and volatile global oil prices.

Gross domestic product is forecast to have grown 4.5 percent year-on-year in April-June, cooling from 5.0 percent in the first quarter, a Reuters poll of 54 economists showed.

The projected pace would mark a fall from the 4.7 percent growth forecast in a Reuters poll in April. It would be at the lower end of the official full-year target of 4.5-5 percent.

Growth has become more uneven. Exports continue to support headline activity, but domestic demand has softened notably, analysts at Goldman Sachs said in a note.

Moreover, the boost from exports has not translated into a stronger labour market or meaningful profit improvement. This limits the pass-through from external demand to domestic growth.

China’s exports, due for release on Tuesday, likely grew at a slightly slower but still-solid pace in June. Firms accelerated shipments to the US ahead of potential new tariffs.

They also rode the AI boom. Additionally, companies competed aggressively on prices to win over cost-conscious consumers.

Investors are closely watching an expected late-July Politburo meeting for clues on fresh stimulus. This could shape policy for the rest of the year.

Analysts expect no aggressive action unless growth slows more sharply. This is given resilient exports and Beijing’s focus on curbing excess factory capacity to fight deflation.

GDP growth is projected to edge up to 4.6 percent in the third quarter. It is then expected to slow to 4.5 percent in the fourth, according to the poll.

For 2026 as a whole, China’s GDP growth is forecast to cool to 4.6 percent from 5.0 percent last year. It is projected to ease further to 4.4 percent in 2027.

On a quarterly basis, the economy is forecast to have expanded 0.9 percent in the second quarter. This marks a slowdown from 1.3 percent in January-March.

The government is due to release second-quarter GDP data on July 15. June retail sales, industrial production and investment data will come out at 0200 GMT.

Analysts expect China to lean on fiscal policy to cushion any further slowdown. The central bank has limited room for high-profile easing even after the retreat in oil prices.

The government is expected to speed up fiscal spending after a second-quarter slowdown. This followed front-loaded support early in the year.

Beijing has set a budget deficit of around 4 percent of GDP for 2026. It has also lined up heavy bond issuance to shore up growth.

China’s growth should pick up over the second half of this year as fiscal support ramps up, Capital Economics said in a note.

But domestic overcapacity will remain entrenched. This leaves China’s economy reliant on exports for growth.

Analysts polled by Reuters expect the central bank to keep its key policy rate unchanged for the rest of 2026. The seven-day reverse repo rate will remain steady.

They also expect the weighted average reserve requirement ratio to remain steady in the third quarter. A possible 20-basis-point cut is expected in the fourth.

The central bank has left policy rates and RRR unchanged since May 2025. It opted instead to use short-term liquidity operations to keep funding conditions supportive.

This comes while overhauling its monetary policy framework and strengthening policy transmission. Analysts estimate a 1.2 percent rise in consumer prices for this year.

This is below the government’s target of around 2 percent. Inflation is expected to steady at 1.2 percent in 2027.

The US dollar has climbed to Tk 123 in the inter-bank market as stronger demand for foreign currency coincides with slower inflows of remittances and export earnings.

The weighted average inter-bank exchange rate stood at Tk 123 yesterday, up slightly from Tk 122.97 a day earlier, according to the latest Bangladesh Bank (BB) data.

Since the beginning of this month, the weighted average exchange rate has been hovering around Tk 123 per USD.

Banks are now trading the US dollar between Tk 122.70 and Tk 123.75.

For example, Eastern Bank sold dollars to importers at Tk 123.70 yesterday, while buying them from exporters and other sources at Tk 122.70. Prime Bank sold dollars at Tk 123.75 and bought them at Tk 122.75.

Bankers said the dollar has strengthened mainly because of mounting payment pressure in recent months.

They said remittance inflows have slowed after the two Eid months, creating a slight shortage of US dollars in the market.

Syed Mahbubur Rahman, managing director and chief executive officer of Mutual Trust Bank, told The Daily Star that the banking sector is facing payment pressure from government imports, especially fuel and fertilisers, which has pushed the dollar exchange rate slightly higher.

He said remittance inflows have also eased after Eid. Together, these factors have increased pressure on the foreign exchange market.

In June, Bangladeshi expatriates sent home $2.81 billion in remittances, down slightly from $2.82 billion in the same month last year, according to BB data.

The June figure was 18.17 percent lower than the previous month.

In May, remittance inflows reached $3.42 billion, up 15.34 percent from a year earlier, as Bangladeshis living abroad sent more money home ahead of Eid-ul-Azha.

Preferring anonymity, the treasury head of a private commercial bank told The Daily Star that banks came under pressure at the end of June to settle letters of credit (LCs) for government imports and debt servicing, increasing demand for US dollars.

He, however, argued that the central bank’s intervention in the foreign exchange market was not wise.

The central bank has stopped buying US dollars from the market as demand for the currency has increased. The BB has not purchased dollars since June 8.

Between July 2025 and June 2026, the BB bought $6.4 billion from the market as part of its effort to build reserves.

Lower import payments and the central bank purchases of foreign currency helped boost the country’s foreign exchange reserves.

As of July 9, gross foreign exchange reserves stood at $31.90 billion under the BPM6 calculation method, up from $24.44 billion a year earlier, according to BB data.

The inter-bank exchange rate has reached Tk 123 at a time when an International Monetary Fund (IMF) fact-finding mission is visiting Bangladesh to assess the feasibility of the government’s proposal for a loan package worth nearly $4.5 billion.

Bangladesh has retained its position as the world's second-largest apparel exporter, but its export growth slowed sharply in 2025, trailing almost all of its major Asian competitors as rivals gained ground in the global market.

According to World Trade Organization (WTO) data released recently, Bangladesh exported $38.82 billion worth of garments in 2025, up just 0.89% from $38.48 billion a year earlier.

The slight increase was well below the 4.46% growth recorded by the global apparel market, reflecting that Bangladesh is losing momentum even as worldwide demand recovers.

Only China, Türkiye and the United States posted declines among the major exporters.

Vietnam, Bangladesh's closest competitor, recorded 10.53% growth to $37.51 billion, narrowing the gap between the two countries to just $1.31 billion. Cambodia registered the fastest expansion among leading exporters at 16.88%, while Pakistan grew 6.83%, Indonesia 5.79%, and India 5.47%.

Fazlul Haque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association, said the slowdown in Bangladesh's export growth was the main concern as competing countries were outperforming it in the global market.

"China and Vietnam pursued aggressive marketing over the past year, particularly after Trump imposed tariffs and Bangladesh could not match that effort. As a result, we have fallen behind in this challenging market, while our competitors have moved ahead," he said.

He warned that unless Bangladesh regains its lost ground quickly, the decline in market share could become permanent. "If buyers who once sourced 50% of their orders from Bangladesh cut that to 45% and shift the rest elsewhere, it may be difficult to win them back. We need to act now and take prompt measures to regain our lost position."

Bangladesh retains 2nd positon

Despite the sluggish performance, Bangladesh maintained a 6.76% share of global apparel exports, behind only China, which accounted for 27.35% of the market.

However, Bangladesh's market share slipped from 7% in 2024, while Vietnam's rose from 6.17% to 6.53%, bringing it closer than ever to overtaking Bangladesh.

Exporters said Bangladesh is struggling to capture new orders at a time when many competing manufacturing hubs are expanding rapidly.

The country's apparel industry has faced a series of challenges in recent years, including persistent energy shortages, elevated borrowing costs, political uncertainty and weaker investment in manufacturing capacity. Industry leaders have also repeatedly warned that gas shortages and rising production costs are eroding Bangladesh's competitiveness.

China, the world's largest exporter, continued to lose market share as exports fell 4.92% to $157.11 billion in 2025. Since 2021, China's share of global apparel exports has dropped from 31.71% to 27.35%.

Much of the business shifting away from China appears to be benefiting other Asian producers. Vietnam, Cambodia and Pakistan all outpaced global growth, while Bangladesh's expansion remained largely stagnant.

Bangladesh's export performance has also become increasingly volatile. After surging 27.64% in 2022 as global demand rebounded following the pandemic, exports fell 21.49% in 2023 before recovering 7.23% in 2024. The slowdown to less than 1% growth in 2025 suggests the recovery has lost momentum.

Finance Minister Amir Khosru Mahmud Chowdhury on Monday said the International Monetary Fund (IMF) has acknowledged the government’s financial reform efforts and respected its political responsibility towards protecting public welfare as both sides discussed the framework for a new IMF-supported programme.
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Speaking to reporters after a meeting with IMF Mission Chief for Bangladesh and Hong Kong, Ivo Krznar, at the Finance Ministry, the minister said the discussions focused on the foundation, sequencing and overall policy direction of a future programme rather than detailed conditions.

“The basis on which the new IMF programme will be structured has been clarified, and the IMF has agreed with the proposed framework,” the finance minister said.

He said the reforms would be implemented gradually, taking into account Bangladesh’s economic realities and maintaining continuity in the ongoing reform agenda.

“Major changes cannot be introduced overnight. The IMF also agrees that reforms should be sequenced in line with the country’s economic situation and priorities,” he said.

Both sides agreed that reforms should be carried out step by step based on national priorities instead of following a rigid timeline, he said.

Amir Khosru also said the IMF has shown respect for the responsibilities of a democratically elected political government in safeguarding public welfare while pursuing economic reforms.

“The country’s economic decisions will be taken by protecting the interests of the people,” he said.

The finance minister said the IMF delegation expressed satisfaction over the progress made during the current government’s first four months, particularly in financial sector reforms, the development of the capital market and revenue collection.

He claimed that the IMF recognised the government’s tax collection performance during the four-month period as a significant achievement and held positive discussions on proposals to further raise Bangladesh’s tax-to-GDP ratio.

On the issue of subsidies, the minister said no detailed discussions has yet taken place regarding specific conditions or policy measures.

“We have only discussed the basic framework of the new programme. Detailed issues, including subsidies, will be taken up during subsequent negotiations,” he said.

Khosru said the negotiations would continue over the coming months, with the next round of discussions expected to take place on the sidelines of the World Bank-IMF Annual Meetings in September or October.

He expressed optimism that the government’s reform-oriented performance would provide a solid foundation for finalising a new IMF programme.

The International Monetary Fund (IMF) has asked the National Board of Revenue (NBR) how it plans to achieve its Tk6.04 lakh crore revenue target for the fiscal 2026-27, which is about 45% higher than the FY26 collection.

The IMF mission also sought details of the tax and fiscal measures introduced in the latest national budget during a meeting with senior NBR officials at the revenue authority's headquarters in Dhaka today (13 July), according to sources who attended the meeting.

On the same day, the IMF delegation led by Ivo Krznar, the mission chief for Bangladesh and Hong Kong, also met Finance Minister Amir Khosru Mahmud Chowdhury.

The IMF representatives arrived on Sunday for a five-day fact-finding mission to assess the feasibility of a fresh loan package worth nearly $4.5 billion proposed by the government.

The finance minister told journalists after the meeting that the IMF delegation had expressed appreciation for the government's financial reforms and its political commitment.

He said the government had clarified the principles on which its new programme with the IMF would be based, and that the IMF had fully agreed with the proposed framework.

"Major changes cannot be made overnight, and the IMF has agreed with this approach," the finance minister said, adding that reforms would be introduced in phases while taking into account the country's economic conditions and maintaining the continuity of the reform programme.

An NBR senior official, who attended the meeting and spoke to The Business Standard on condition of anonymity, said, "The representatives wanted to know how the revenue target for the new fiscal year would be achieved and what plans have been put in place to meet that goal.

"They also wanted to know what changes had been made in the latest budget. We briefed them on those changes."

He further said, "The mission also sought detailed explanations about the 0.20% tax imposed under the Finance Bill on the value of goods purchased by retailers, which will be collected at the dealer level."

NBR officials also told the IMF that a newly elected political government could not immediately withdraw all expenditure-related measures or tax incentives.

The official said, "The delegation were also informed that tax exemptions granted to various sectors are subject to sunset clauses. These cannot be withdrawn before their expiry, and a political government cannot simply abolish all exemptions whenever it wishes."

IMF 'satisfied' with revenue collection progress

According to the finance ministry, the IMF delegation expressed satisfaction with the growth in revenue collection during the first four months since the BNP-led government assumed office.

"The IMF delegation expressed satisfaction with the visible progress made during the current government's first four months in financial sector reforms, the development of the stock and capital markets, and revenue collection," Finance Minister Amir Khosru said.

The ministry said the IMF described the rise in tax collection over the four-month period as a significant achievement. It also held positive discussions with the government on proposals to further increase Bangladesh's tax-to-GDP ratio while maintaining the current momentum in revenue collection.

Khosru reiterated that reforms would be implemented gradually, based on priorities and in line with the country's overall economic conditions, adding that the IMF had endorsed this phased approach.

He said the IMF had also shown respect for the responsibilities and public welfare obligations of an elected government, adding that economic decisions would continue to be made with the public's interests in mind.

On subsidies, Khosru said no detailed discussions had yet been held on specific conditions or measures. The talks focused primarily on establishing the framework for a new IMF programme, while detailed issues would be discussed at a later stage.

He said the discussions were part of an ongoing process, with the next round of talks expected during the World Bank's annual meetings in September or October.

The finance minister added that the IMF was satisfied with the current government's reform-oriented performance and that a new programme would be finalised on that basis.

The Export Promotion Bureau (EPB) has proposed a total export target of $66 billion for the 2026-27 fiscal year, comprising $57 billion from merchandise exports and $9 billion from services sector.
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The EPB has submitted the draft proposal to the commerce ministry, requesting prompt review and approval of the targets.

The proposed benchmarks were finalised during a stakeholder consultation, chaired by EPB Vice Chairman and CEO Mohammad Hasan Arif.

Representatives from government ministries and agencies, and export-oriented trade organisations, including BGMEA, BKMEA, BAPA, the Metropolitan Chamber of Commerce and Industry (MCCI), and the Bangladesh Frozen Foods Exporters Association attended the meeting held at the end of last month.

During the consultations, officials and trade leaders evaluated the global economic outlook, domestic macroeconomic indicators, supply chain readiness, and market diversification strategies before recommending the export target, according to official documents.

According to the EPB, while the export sector has shown resilience, it continues to face persistent global headwinds. The economic ripple effects of the Russia-Ukraine war, escalating Middle East tensions involving Israel and Iran, soaring inflation, and the high cost of imported raw materials have squeezed exporters' profit margins.

The bureau also raised concerns that the country's graduation from Least Developed Country (LDC) status will gradually reduce access to preferential trade benefits.

When contacted, Commerce Secretary Md Ataur Rahman Khan said, "We have already held a meeting on the export target, which will be announced soon after finalising it for the current fiscal year. The EPB is currently working on the issue."

At the meeting, business leaders urged the government to introduce targeted policy support to help exporters meet the ambitious target.

They called for lower logistics costs, faster implementation of automated customs and trade facilitation systems such as the National Single Window, rationalisation of import duties on industrial raw materials, particularly for the furniture, plastics and leather sectors, and timely disbursement of cash incentives.

Furthermore, exporters stressed the need to accelerate negotiations on bilateral and regional trade agreements, including Free Trade Agreements (FTAs), Comprehensive Economic Partnership Agreements (CEPAs) and Economic Partnership Agreements (EPAs), with major markets such as the European Union, Japan and South Korea to safeguard market access post-LDC graduation.

The Ready-Made Garment (RMG) sector, which faced a slight negative growth curve recently due to weakened consumer purchasing power in Western markets, is expected to remain the primary engine of the country's export earnings.

According to official documents, the EPB has proposed an export target of $45.8 billion for the sector in FY27, including $24.11 billion from knitwear and $21.69 billion from woven garments.

The EPB has also set ambitious goals for other export-oriented manufacturing sectors.

Among other sectors, leather and leather goods have been assigned a target of $1.44 billion, including $810 million from leather footwear.

Agricultural products are expected to generate more than $1.17 billion, including $230 million from tobacco and $170 million from fruits.

Jute and jute goods exports have been targeted at $1.017 billion, with jute yarn and twine projected to contribute $620 million.

Home textiles are expected to earn $1.065 billion, engineering products $803.8 million, and pharmaceutical exports $290 million.

The EPB has set a $9 billion target for service exports in FY27.

Transportation services are expected to generate $1.65 billion, followed by other business services at $1.54 billion.

Computer and IT services have been assigned a target of $855 million, including $750 million from data processing and hosting services, while telecommunications services are projected to earn $935.82 million.

Officials said achieving the overall export target would depend on stronger performance across both the manufacturing and services sectors amid an increasingly challenging global trade environment.

Bangladesh's strategic pivot toward non-traditional markets has hit a major milestone as its year-on-year exports to Latin American nations are increasing significantly.

Rising imports by Brazil and Chile have helped Bangladesh make a strong foothold in the South American market, analysts say.

Merchandise shipments to Latin America, especially ready-made garment (RMG), saw a 29.15 per cent growth over the last four fiscal years, pushing Bangladesh one step ahead in diversifying its export market, according to the Export Promotion Bureau's (EPB) official data.

The robust growth underscores the expanding footprint of local manufacturers in the South American continent.

This surge comes at a critical juncture as the nation actively pursues aggressive market diversification strategies to mitigate geopolitical vulnerabilities in its conventional Western strongholds.

According to the EPB data, Bangladesh exported goods worth $367.82 million to the South American market in the fiscal year 2022-23, which grew to $475.04 million in FY26.

In FY24, Latin American countries imported Bangladeshi products worth $362.02 million, which rose to $442.06 million in the following year.

Some Bangladeshi garment makers say if MERCOSUR - the Southern common market trade bloc comprising Brazil, Argentina, Uruguay, and Paraguay - eliminates tariff barriers, exports would boost significantly.

Bangladeshi products face high tariffs of up to 35 per cent when entering MERCOSUR.

This rate is part of the bloc's Common External Tariff (CET).

The high duty applies to non-member countries and makes Bangladeshi goods like clothing more expensive to sell in South America.

Local businessmen say men and women suits, sweaters, shirts, T-shirts, jute and jute goods, and leather and leather goods are the major export items from Bangladesh to South America.

According to the EPB, Brazil is the leading importer of Bangladeshi products.

Bangladesh exported goods worth $109.2 million to Brazil in FY23, which increased to $147.58 million in FY2024.

In FY25, shipments maintained momentum and reached $187.34 million, which jumped further to $ 214.69 million in FY26.

Beyond Brazil, Bangladeshi goods are seeing a notable momentum in a trio of South American economies.

Benefiting from a long-standing zero-duty benefit arrangement enacted for developing nations, Chile has evolved into a vital partner.

In FY26, Bangladesh exported goods worth $169.64 million to Chile.

Major shipments to the market included knitted T-shirts, formal men suits, and women's apparel.

Steadily moving up the ranks, Uruguay has absorbed escalating volumes of knitwear, sweaters, and specialised woven items as it imported $39.28 million worth of goods in FY26.

This absorption helped solidify Bangladesh's position in the Southern Cone of the continent.

While the overall trade volume remained relatively modest at $34.93 million in FY26, Argentina recorded a dramatic, multi-fold percentage increase in its imports from Bangladesh over the mid-term. Demand was spearheaded by knit sweaters, activewear, raw jute products, etc.

Analysts say the 29.15 per cent upward trajectory in Latin American shipments indicates that local exporters are successfully penetrating new geographical frontiers.

Trade experts highlight that navigating South America's high tariff barriers remains an operational hurdle.

To lock in these hard-won gains, trade groups like the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) are advising the government to initiate formal Free Trade Agreement (FTA) negotiations with MERCOSUR.

Securing preferential access is deemed essential for preserving cost competitiveness following Bangladesh's official graduation from the Least Developed Country (LDC) status.

Heavy to very heavy rain, flash floods, flooding and waterlogging have affected 28,610 hectares of crops across 12 districts.

Preliminary data from the Department of Agricultural Extension (DAE) showed that Aush rice, Aman seedbeds and summer vegetables were the most affected.

The DAE assessment covered 5,34,570 hectares under the listed crops in the affected districts.DAE officials said the figure was preliminary. The actual extent of the damage would become clearer after floodwater receded, while the affected area could increase if rain continued.

Md Obaidur Rahman Mondal, director of the DAE's Field Services Wing said farmland in Chattogram, Rangamati, Khagrachhari, Bandarban and eight other districts had been affected by heavy rain.

"Continuous rain and standing water have affected Aush rice, Aman seedbeds, seasonal vegetables and betel leaf farms," he said.

He added that officials were continuing to collect field-level information to determine the full extent of the damage.

District-wise data showed that 3,495 hectares were affected in Rangamati, including Aush, summer vegetables, ginger, turmeric, Aman seedbeds and orchards.

In Khagrachhari, 1,031 hectares of Aush, summer vegetables, Aman seedbeds and orchards were affected.

In Bandarban, around 945 hectares under nine crop categories were affected, including Aman seedbeds, Aush, summer vegetables, orchards in the plains and hills, jhum Aush, ginger and turmeric.

Chattogram recorded 6,591 hectares of affected Aush, 565 hectares of Aman seedbeds and 4,167 hectares of summer vegetables.

Aush, Aman seedbeds, summer vegetables and betel leaf farms were affected in Cox's Bazar.

In Naogaon, 4,340 hectares of Aush were affected. Habiganj recorded 1,259 hectares of affected Aush, 150 hectares of Aman seedbeds and 233 hectares of vegetables.

Different areas under Aush, jute, chilli, banana, Aman seedbeds and summer vegetables were also affected in Jashore, Chuadanga, Meherpur, Sirajganj and Sunamganj.

Agriculture officials said Aush, summer vegetables and Aman seedbeds had so far faced the greatest impact.

If Aman seedlings are destroyed, farmers in many areas may have to prepare new seedbeds, delaying the cultivation schedule. Damage to vegetables still in the fields could also reduce supplies and raise prices, they said.

Meanwhile, the Flood Forecasting and Warning Centre (FFWC) said yesterday (12 July) that the flood situation in the north-eastern region could worsen over the next 24 to 72 hours.

Water levels in the Khowai, Manu, Kushiyara and Surma rivers were rising rapidly. The Kushiyara was already flowing above the danger level at Markuli in Sunamganj and Fenchuganj in Sylhet.

Water in the Sari-Gowain, Someshwari, Jadukata and Bhogai-Kangsha rivers could also cross danger levels at several points.

This could inundate more low-lying farmland in Sylhet, Sunamganj, Habiganj and Moulvibazar, officials said.

Mohammad Nazmul Kabir, additional deputy director for crops at the DAE's Sunamganj office, said relatively low rainfall in Cherrapunji had so far prevented major flooding.

"However, the area remains highly vulnerable to flash floods," he said.

Vegetable importer Farhan Hossain said actual supplies often declined during disasters, while artificial shortages were also sometimes created to raise prices.

Transport disruption could quickly push up the prices of green chillies, potatoes and other essential vegetables, he said.

Faruk Ahmed, director of the research wing at the Bangladesh Agricultural Research Institute, said most summer crops had been harvested before the monsoon, reducing the risk of a major impact on overall food production.

"However, vegetables, green chillies and newly prepared Aman seedbeds still in the fields could affect the market in the short term," he said.

He added that farmers in waterlogged areas could use the pyramid method, under which crops are grown on raised, pyramid-shaped beds, to improve drainage and reduce the risk of root rot.

Defaulted loans from Bangladesh's nine state-owned banks have risen to nearly Tk 1.89 trillion, prompting the government to begin overall banking-sector overhaul, the finance minister told parliament on Sunday.)

A series of short-, medium- and long-term reforms are being carried out for restoring discipline in the banking sector, said Amir Khasru Mahmud Chowdhury.

Responding to a supplementary question from reserved-seat lawmaker Sabikunnahar during the 23rd sitting of the second session-the first budget session under this government-of the 13th Jatiya Sangsad, the finance minister said total default loans from the state-owned banks stood at Tk 1,88,701.75 crore as of May 31.

The figures were compiled using data submitted to the Bangladesh Bank's Credit Information Bureau (CIB) by the nine state-owned lenders: Agrani Bank PLC, Janata Bank PLC, Rupali Bank PLC, Sonali Bank PLC, BASIC Bank PLC, Bangladesh Development Bank PLC, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank and Probashi Kalyan Bank.

Presided over by Speaker Hafiz Uddin Ahmed, the parliamentary session heard the finance minister stress that reducing the high volume of non-performing loans is essential to restoring order in the banking sector.

He notes that the issue has been given special importance in the government's election manifesto.

To address the problem, Bangladesh Bank has adopted a comprehensive reform strategy.

In the short term, the central bank is preparing guidelines on classified loan- resolution strategies and updating its credit-risk-management framework in line with international standards.

The medium-term plan includes implementing the International Financial Reporting Standard (IFRS-9), introducing accredited institutions to assess collateral value, updating agricultural loan-rescheduling policies, providing incentives to bank officials for recovering defaulted loans, and strengthening reward schemes for regular borrowers.

Long-term measures include setting a cap on the total amount an individual borrower can obtain from the entire banking sector, taking stricter action against willful defaulters, appointing experienced bankers to panels of judges in Money Loan Courts, preventing delays in loan recovery caused by writ petitions, and enacting legislation to establish private-sector asset-management companies.

The finance minister also has said the government has enacted the Bank Resolution Act 2026 to ensure effective management of troubled banks. In addition, it is preparing the Deposit Protection Act 2026 to safeguard depositors' interests.l

And amendments to the laws governing Bangladesh Bank, the Insurance Development and Regulatory Authority (IDRA), Bangladesh Securities and Exchange Commission (BSEC), as well as revisions of the Negotiable Instruments Act, have strengthened the legal framework for addressing cheque fraud and improving the adjudication of cheque-dishonour cases.

"The government is working to restore discipline in the financial sector through a stronger legal framework, a transparent bank-resolution process and enhanced protection for depositors," he told the House.

To another supplementary from Gazipur-4 lawmaker Salauddin, the finance minister said investigations were underway into irregularities, corruption and large-scale financial misappropriation that occurred in the banking sector over the past several years, including at Probashi Kalyan Bank.

He reaffirms that restoring order in the financial sector remains one of the government's highest priorities and describes the ongoing reforms as a comprehensive "cleaning process" across the sector.

During the session, Salauddin alleged that under the previous government, billions of taka had been siphoned off from Probashi Kalyan Bank through "politically influenced loan approvals, bribery and syndicate-based corruption".

As a result, he claims, nearly 61 per cent of the bank's loans have become non-performing. He also alleges that the same syndicates continue attempting to influence loan approvals and disbursements, calling for a thorough investigation and the dismantling of the nexus.

In response, the finance minister makes it clear that the investigation is not limited to a single institution but covers multiple banks.

He notes that action has already been taken against a number of individuals and acknowledges that the financial sector's longstanding irregularities cannot be eliminated overnight, but pledges that the cleanup drive would continue.

Bangladesh’s inward remittance recorded a robust double-digit growth at the start of the new fiscal year 2026–27, with US$1.15 billion in the first 11 days of July, according to the latest data released by Bangladesh Bank.

This marks a significant 11.6 percent monthly growth compared to the corresponding period of the previous fiscal year, when the country received $1.03 billion between July 1 and July 11, 2025.

The central bank’s detailed breakdown indicates that the flow of foreign currency picked up pace significantly toward the end of the first week of July. In just a three-day window between July 9 and July 11, 2026, Bangladeshi expatriates sent$191 million through banking channels.

Financial analysts and central bank officials attribute this strong upward trajectory to the recent stabilization of the interbank foreign exchange market and competitive exchange rates offered by commercial banks. The steady use of banking channels instead of informal networks (like Hundi) has significantly buoyed the state’s incoming foreign currency receipts.

The sustained surge in remittance inflows brings a much-needed sigh of relief for macroeconomic policymakers.

This steady influx is expected to provide a crucial buffer to Bangladesh’s gross foreign exchange reserves and help ease the ongoing balance of payment pressures during the first quarter of the current fiscal year.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) will launch a series of roadshows in major trading hubs, including Hong Kong, Singapore and Dubai, to attract global apparel buyers that currently do little or no business with Bangladesh.

The initiative will begin with a roadshow in Hong Kong, while HSBC will support the programme by helping identify and engage potential buyers and encouraging them to participate in the events. The announcement was made at a programme held at the BGMEA headquarters in Dhaka yesterday (12 July).

To formalise the collaboration, BGMEA and HSBC signed a MoU. The agreement was signed by Mahmud Hasan Khan Babu, president of BGMEA, and Md Mahbub ur Rahman, CEO of HSBC Bangladesh, on behalf of their respective organisations.
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Speaking at the event, Shah Rayeed Chowdhury, a BGMEA director, said the initiative would begin in Hong Kong before expanding to other global trading centres. "We will start with Hong Kong, but later we will also go to places such as Singapore and Dubai," he said.

After the event, he told TBS that BGMEA's current focus was largely on major existing buyers, but the organisation now wanted to showcase Bangladesh's capabilities to brands that either do not source from the country or have only a limited presence.

"We want to let those buyers know how Bangladesh's capabilities have evolved. Our main objective is to strengthen Bangladesh's brand image," he said.

Explaining why Hong Kong had been chosen as the first destination, Chowdhury said it was an important global trading hub where many international brands have a presence.

"We will target those brands there. Singapore and Dubai are also global trading hubs, so we will organise similar programmes there in the future and engage with buyers. There will also be matchmaking sessions," he said.

He added that the events would be jointly organised by BGMEA and HSBC.

Explaining HSBC's role, Chowdhury said many global brands already work with the bank because of its international reputation.

"Global brands work with trusted and reliable institutions like HSBC. Partnering with them will also strengthen our credibility," he said.

Speaking at the event, HSBC CEO Mahbub said understanding buyers' changing priorities would be key to the initiative.

"We need to research what customers want and where they are heading. We want to identify three to five priorities over the next five years. We will set our priorities based on customers' needs," he said.

BGMEA President Babu called on HSBC to help attract brands that have yet to source products from Bangladesh. He said one international brand that previously did not purchase from Bangladesh had now decided to start sourcing from the country.

He also said BGMEA planned to expand business with Japan and would establish a dedicated help desk at the association to support that effort.

Agreeing with the HSBC chief executive, Babu said Bangladesh had many world-class garment factories, but negative images often affected buyers' perceptions.

"There are many excellent factories in Bangladesh. But when images of the polluted waters of the Turag River are shown abroad, many premium brands become reluctant to place orders in Bangladesh," he said.

For the local bike market, the recently concluded fiscal year was dull, as retail sales were almost unchanged from the previous year, due mainly to weak economic conditions, sluggish farming activity and fuel price shocks.

Even in the subdued market, Japanese brands posted double-digit sales growth, while their Indian rivals struggled.

Sellers said the demand for Japanese motorcycles in the entry and mid-segment was strong, driven by fuel efficiency, low running costs, competitive pricing and practical features.

In contrast, Indian brands said the absence of new product launches in FY26 eventually hurt their sales.

Industry data showed that 422,655 motorcycles were sold in FY26, almost unchanged from 422,593 units in the previous fiscal year. Companies blamed weak demand for the stagnant market.

“The industry should have reached annual sales of 700,000 to 800,000 motorcycles by now, but remained below 500,000 units, discouraging deeper localisation and investment in domestic component manufacturing,” said Subrata Ranjan Das, deputy managing director of ACI Motors.

ACI Motors is the sole distributor of Japanese brand Yamaha in Bangladesh.

He said the market had failed to realise its potential because weak economic conditions, sluggish agricultural activity in the northern region and policy uncertainty curbed demand.

Yamaha retained its position as the country’s best-selling motorcycle brand after retail sales rose 19 percent year-on-year to 95,531 units, giving it a 23 percent market share.

Another Japanese brand Suzuki ranked second with sales of 90,657 units, up 10 percent, while Honda recorded the fastest growth among these three Japanese brands. Its sales jumped 18 percent to 83,122 units, lifting its market share to 20 percent.

Together, the three brands accounted for nearly two-thirds of all motorcycles sold in Bangladesh during the last fiscal year.

Several competitors, particularly Indian manufacturers, struggled to maintain their position.

Hero’s sales fell 6 percent to 73,762 units, although it remained the fourth-largest player with a 17 percent market share. Bajaj posted a steeper decline of 22 percent to 63,256 units, while Royal Enfield’s sales slipped 9 percent to 7,568 units.

TVS recorded the sharpest decline among the major manufacturers, with sales plunging 67 percent to 6,370 units from 19,167 a year earlier.

Sales by smaller brands grouped under the “Others” category edged up 3 percent to 2,389 units.

Industry executives said weak economic conditions, policy uncertainty and subdued consumer spending continued to weigh on the market despite strong performances by a handful of brands.

“At the current volume, it is difficult to justify deep manufacturing or build a competitive vendor base. We need a market of at least 10 lakh units,” Subrata Ranjan Das of ACI said.

He noted that Pakistan’s motorcycle market stands at around 25 lakh units despite having a population only slightly larger than Bangladesh’s.

Das also said Bangladesh remains one of the least-penetrated motorcycle markets in South Asia, with roughly one motorcycle for every 80 people, compared with about one for every two people in India.

He attributed Yamaha’s continued market leadership to the company’s customer-centric approach, strong after-sales service, reliable braking performance, fuel efficiency and high resale value.

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He also credited regular customer engagement and follow-up services with helping build long-term trust and customer loyalty.

TVS Auto Bangladesh Chief Executive Officer Biplob Kumar Roy said the absence of new product launches, coupled with weak economic conditions, had hurt the company’s performance.

“We could not introduce any new products, so our business did not perform as expected,” he said.

He added that the broader economic slowdown and prolonged uncertainty had further dampened consumer demand.

“The industry could not grow the way it was expected to,” Biplob said, adding that the sector still has significant growth potential, but subdued consumer sentiment has prevented it from reaching that trajectory.

Honda, however, bucked the broader market trend.

Shah Muhammad Ashequr Rahman, chief marketing officer at Bangladesh Honda Private Limited (BHL), attributed the company’s sales growth to strong demand for its entry and mid-segment motorcycles, particularly the 110cc and 125cc models.

Popular commuter models such as the Dream 110, Shine 100, Shine 100 DX and SP 125 have continued to attract buyers because of their fuel efficiency, low running costs, competitive pricing and practical features, said Ashequr.

“We are resolving customer issues much faster than before. Our motorcycles offer advanced technology at competitive prices with low running costs,” he said.

He added that Honda’s strengthened brand image had also contributed to the company’s improved sales performance.