Ten banks accounted for more than 72 percent of the banking sector’s total non-performing loans, according to the central bank, showing that the country’s 61 commercial lenders are not equally responsible for the sector’s financial distress.

As of June this year, bad loans in the banking sector stood at a whopping Tk 6,06,555 crore, according to the latest data from the Bangladesh Bank (BB). Of this, the 10 distressed lenders held Tk 4,39,527 crore in NPLs.

The lenders are Islami Bank Bangladesh, Janata Bank, Agrani Bank, IFIC Bank, National Bank, AB Bank, First Security Islami Bank, EXIM Bank, Social Islami Bank and Union Bank.

In terms of volume, Islami Bank Bangladesh has the highest level of bad loans in the banking sector. Until June this year, its NPLs stood at around Tk 98,914 crore, or 52.15 percent of its disbursed loans.

The bank was taken over by S Alam Group in 2017. The controversial conglomerate later extended around 80 percent of the bank’s total loans to its own companies and associated firms, violating banking rules and regulations.

After the fall of the Awami League government in August 2024 in an uprising, the bank was freed from the group’s control and is now operating under the supervision of the BB.

At the end of December last year, Islami Bank’s bad loans stood at Tk 92,115 crore, or 49 percent of its disbursed loans. In the six months to June, its bad loans increased by Tk 6,799 crore, according to BB data.

Contacted, Md Altaf Hossain, acting managing director of Islami Bank, said that a large share of its defaulted loans is linked to the S Alam Group, with recovery remaining minimal.

He said that the bank is trying to recover loans from other borrowers, but progress has been limited.

“We are trying to recover the loans through cash payments and rescheduling. When we find no other way, we ultimately resort to filing cases against the customers,” Altaf told The Daily Star.

The acting managing director said the bank regularised Tk 5,885 crore this year through rescheduling, while it recovered Tk 749 crore from classified loans.

Scam-hit Janata Bank ranked second in terms of bad loan volume. Its NPLs stood at Tk 75,729 crore, or 75 percent of its disbursed loans.

Seeking anonymity, Janata Bank officials told The Daily Star that a major portion of the bank’s bad loans is concentrated among a small number of powerful business groups.

They said that about 80 percent of its bad loans are stuck with its top 20 defaulters, including Beximco, S Alam and AnonTex.

Beximco Group alone accounted for about Tk 25,000 crore of the bank’s exposure. Other major defaulters include Crescent Group and Thermex Group.

Agrani Bank, another state-run lender, also struggles with a heavy NPL burden. Its NPLs stood at Tk 32,133 crore, or 43.98 percent of its disbursed loans, show BB data.

At EXIM Bank, bad loans stood at Tk 38,052.53 crore, nearly 71 percent of its total disbursed loans, according to central bank data.

The bank was largely influenced by Nazrul Islam Mazumder, chairman of Nassa Group and former chairman of the Bangladesh Association of Banks (BAB). Lending irregularities and weak corporate governance have pushed the lender towards a merger with four other troubled banks.

Among lenders linked to the S Alam Group, First Security Islami Bank reported NPLs of Tk 60,645 crore, or 97 percent of its total disbursed loans.

Social Islami Bank’s bad loans stood at Tk 29,799 crore, or 78 percent of its disbursed loans, while Union Bank’s NPLs stood at Tk 27,134 crore, or 96 percent of its disbursed loans.

The boards of the two lenders were also largely dominated by the S Alam Group.

AB Bank’s NPLs stood at Tk 20,325 crore, or 56.04 percent, while National Bank reported Tk 28,276 crore, or 65.46 percent, according to BB data.

Bad loans at IFIC Bank stood at Tk 28,520 crore, or 63.38 percent of its disbursed loans. The bank was dominated by Salman F Rahman, vice-chairman of Beximco Group and an influential adviser to ousted prime minister Sheikh Hasina.

Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management (BIBM), said the country’s NPL situation shows that the problem is concentrated in a handful of Islamic and state-owned banks.

“The main reason for the rise in NPLs is that loans have become concentrated among a small number of corporate borrowers. The banking sector needs to move away from this excessive loan concentration,” he told The Daily Star.

Ezazul, a former official of the central bank, said that around 10 percentage points of the banking sector’s NPL ratio, which has now reached 30 percent, can be attributed to economic factors, while the remaining 20 percentage points are the result of willful default, irregularities and corruption.

The value of internet banking transactions in Bangladesh grew by 6.22 percent month-on-month to Tk 1.84 lakh crore in June 2026, driven mainly by sharp increases in two payment systems, according to a recent central bank report.

The total had stood at Tk 1.73 lakh crore in May 2026.
The transactional values of Real Time Gross Settlement (RTGS) and National Payment Switch Bangladesh (NPSB) rose while Bangladesh Electronic Fund Transfer Network (BEFTN) fell, according to the e-Banking and e-Commerce Statistics review by Bangladesh Bank.RTGS, NPSB and BEFTN are BB-operated interbank payment systems, but they serve different purposes.

BEFTN is for scheduled batch transfers, NPSB is for real-time card and account transactions, and RTGS is for high-value, instant gross settlement-- all three route transactions among the country’s scheduled banks and mobile financial service providers.

Among the individual channels, RTGS transactions rose 26.09 percent to Tk 50,461 crore in June, up from Tk 40,022 crore in May. NPSB transactions increased 2.70 percent to Tk 57,480 crore in June from Tk 55,967 crore in May, the report showed.

BEFTN transfers, by contrast, declined to Tk 11,638 crore in June from Tk 12,987 crore in May. “It is clear that a large number of customers are using internet banking to access financial services,” BB said in the report.

However, the total number of internet banking customers fell slightly during the same period, decreasing 0.64 percent to 2.27 crore in June from 2.28 crore in May.

The data also showed that among the internet banking customer base, 1.78 crore were male, 44 lakh were female, and 4.7 lakh were registered under “other” in June.

As of June, 58 scheduled banks were offering internet banking services in the country.

Bangladesh has set a target to generate at least 20% of its total electricity from renewable sources by 2030 and 30% by 2040 to curb dependence on imported fuels and prioritise renewable energy to meet growing demand, Prime Minister Tarique Rahman told parliament today (9 September).

Under the government's National Renewable Energy Development Strategy for 2026-2030, he said, the country aims to generate 5,500 megawatts of electricity from rooftop solar systems and 4,500MW from ground-mounted solar projects by 2030.

Another 450MW to 550MW is targeted from wind, waste-to-energy, hydropower, floating solar, and agrivoltaics, among other technologies, he added.

The prime minister disclosed the targets in a written response to a question from Meherpur-1 MP Md Tajuddin Khan during the question-answer session of the third session of the 13th parliament.

"Considering the country's growing electricity demand, the government has identified renewable energy as a priority sector to reduce dependence on imported fuel," said the prime minister.

The prime minister also said the government has also introduced incentives to encourage electricity generation from renewable sources, including conditional exemptions from various duties and taxes on solar panels, inverters, batteries and supporting structures used for solar installations.

He said the maximum generation cost for rooftop solar systems with batteries was set at Tk8 per unit on 1 September 2026.

As part of a special incentive package, the government has fixed the purchase price of electricity supplied to the national grid at Tk10.50 per unit, taking into account a 20% profit margin on generation cost and an 11.25% premium.

Under the notification, consumers who install rooftop solar systems by 28 February 2027 in accordance with the Net Metering Guideline 2025 and supply surplus electricity to the national grid after meeting their own consumption needs will receive Tk10.50 per unit for the following three years, until 28 February 2030.

The prime minister also told parliament that the government has formulated several policies and guidelines to expand renewable energy.

These include the "Guideline for Development of Renewable Energy Projects on Land Owned by Government Agencies under the PPP Model, 2026," the "Policy for Increasing Private Participation in Renewable Energy-Based Power Generation, 2025," the "Renewable Energy Policy, 2025," the "Net Metering Guideline, 2025" and the "National Rooftop Solar Programme, 2025."

He said guidelines have also been formulated on business models for waste-to-energy generation, onshore wind development and carbon credit processing.

A fresh US$81.68-million capital is going to be funneled into Janata Bank's UAE operations to avert wind-down of its business following persistent capital-shortfall-triggered regulatory restrictions on its reserve accounts.

To this effect, the Financial Institutions Division (FID) Tuesday sent to the Finance Division a letter seeking approval for the government bailout for the state-owned bank's overseas outfit, sources said Wednesday.

Earlier, the UAE central bank had threatened to freeze Janata Bank's UAE operations and force a three-year wind-down of the business over its persistent capital shortfall, sources said.

The fund will be sourced from Janata Bank's head office in Dhaka and routed through its local office to the United Arab Emirates.

Contacted, an official of the Finance Division said, "We are working on the issue and necessary approval would be issued shortly."

Janata Bank's UAE operations have been running for 52 years since 1974 and currently it operates four branches and a chief executive office, making it the second-largest foreign bank in the UAE by branch count.

The bank serves roughly 70,000 depositors, 3,800 loan and advance customers, and close to one million remittance senders.

In 2021, the Central Bank of the UAE (CBUAE) raised the minimum capital requirement for foreign banks from AED 40 million to AED 400 million.

Janata Bank's UAE unit had paid-up capital of only AED 100 million, plus AED 83 million in retained earnings, well short of the new threshold, even though it had repatriated no profits in the intervening time while trying to build up capital.

Citing the persistent shortfall, the CBUAE imposed restrictions on debit transactions from Janata Bank's reserve accounts held at the central bank, effective July 8, 2026.

A week later, on July 15, the UAE regulator formally asked Janata Bank to begin a rollback to be completed within three years and appoint an administrator.

The CBUAE warned that failure to appoint an administrator and start wind-down proceedings by September 14, 2026 would lead to a permanent freeze of the bank's reserve accounts and the appointment of an administrator by the authority.

Bangladesh's ambassador to the UAE met the CBUAE assistant governor on August 18 to seek a resolution.

The ambassador recommended that the Finance Ministry pledge an AED 2.0-billion capital injection and that Janata Bank immediately meet the AED 100-million minimum capital requirements per branch.

The UAE operations' CEO informed the authorities on September 1 that the CBUAE would begin the winding-down process on September 8 and review progress on the administrator appointment and other compliance measures.

In a September-6th letter to the FID, Janata Bank Chairman Md Fazlur Rahman said the board, at its 900th meeting on September 5, 2026, had decided that the UAE operation was profitable and "should not be closed in national interest".

An official of Janata Bank who deals with the issue has said, "We hope to send capital to the UAE unit of state-owned Janata Bank by the deadline set by the CBUAE."

The closure of Janata Bank's UAE operations could disrupt banking services for around 70,000 depositors, one million remittance customers and 3,800 borrowers, while putting nearly Tk 9.0 billion in outstanding loans at risk of turning non-performing, according to an assessment by the bank's board.

The board's assessment, cited in a letter, warns that shutting down the UAE operations would also disrupt a major formal channel for remittances to Bangladesh.

Janata Bank currently channels an estimated Tk 80 billion to Tk 100 billion in remittances annually from the UAE, the assessment said.

"A closure could disrupt formal remittance flows and affect sales of the government's Wage Earners' Development Bond and dollar bonds.

"The UAE accounts for around 70 per cent of current CIP (remittance) recognitions," the assessment reads.

The board has warned that closure could damage the bank's international reputation, too, jeopardise correspondent banking relationships (RMA) and affect head-office trade-finance operations.

The three-year winding-down would also incur costs for asset disposal, customer liabilities, staff separation, contract termination and IT relocation, while the head office could have to cover administrator fees, salaries and legal expenses.

It could also affect the government's Probashi Card programme, for which Janata Bank has first-phase distribution responsibility in the Middle East.

Against this backdrop, the board approved transferring US$81.68 million (AED 300 million) from head-office assets into the UAE operations as capital, subject to government and central-bank approval.

It also approved a commitment letter to the CBUAE and a request to the Finance Ministry for the full AED 2.0-billion capital injection recommended by the Bangladesh ambassador.

The board further approved a request for ministry assistance to meet the capital shortfall, with all correspondence cleared for dispatch under the chairman's signature.

The FID's approval on Tuesday cleared the immediate AED300-million tranche, which officials say would meet the CBUAE's per-branch minimum capital requirement and avert the September-14th deadline for initiating formal rollback.

The country has no fertiliser shortage and will have a surplus of 1.584 million tonnes against demand during the upcoming Rabi and Boro seasons, State Minister for Local Government Mir Shahe Alam told parliament yesterday (9 September).

Demand for urea, TSP, DAP and MOP from October to February 2027 is projected at 3.587 million tonnes, against a prepared supply of 5.171 million tonnes. "So, there is no reason for farmers to panic over fertiliser," he said.

Opposition lawmakers, however, disputed the assessment, saying adequate stocks on paper are not reaching farmers when needed. They blamed dealer irregularities, artificial shortages, black-market sales and poor management.
Govt cites supply, production

State Minister for Commerce Md Shariful Islam said the government is maintaining production, imports and buffer stocks to ensure uninterrupted supplies.

In the current fiscal year, 2,08,799 tonnes of urea have been produced and 1,17,899 tonnes imported, while 5,30,925 tonnes have been distributed and 409,000 tonnes remain in stock, he said.

Production at several factories has been suspended due to gas and raw-material shortages. However, the Ghorashal-Palash and Shahjalal Fertiliser plants are operating normally, while Chattogram Urea Fertiliser is expected to resume production soon.
'Fertiliser exists, proper management does not': Jamaat MP

Jamaat MP Shafiqul Islam said the main problem was poor management, not stocks. Citing media reports, he said farmers are struggling to buy fertiliser at fair prices. In Joypurhat, dealers are allegedly charging Tk300-Tk400 more per bag, with some farmers paying Tk500-Tk800 above the official price.

He also alleged that Tk10-Tk12 lakh is being traded for dealer appointments, with a syndicate bypassing lists prepared by local administrations or elected representatives.

Citing illegal stockpiles seized in Kurigram and an incident in which farmers broke into a warehouse, Shafiqul said field-level supplies were far from normal. He warned that failure to ensure supplies before Boro could revive a situation similar to the BNP's previous government.

Jamaat MP Md Mahbubul Alam said farmers in his constituency are buying fertiliser on the black market despite adequate government stocks.

He criticised the removal of MPs from fertiliser and seed monitoring committees. MPs had served on district- and upazila-level committees since 2009, but a 27 August circular removed all 349 MPs, he said.

Mahbubul proposed replacing the dealer system with an open market, creating union-based digital demand maps, distributing fertiliser through farmers' digital IDs using OTP or QR codes, and digitally tracking supplies.
Govt blames dealer gaps

Mir Shahe Alam said around 3,759 dealers appointed under the previous government were absconding, leaving dealer points vacant. The government plans to appoint around 4,918 new dealers.

Between 29 August and 6 September, 204 mobile courts took action in 22 fertiliser-related incidents, imposing Tk35 lakh in fines. He said MPs need not be on monitoring committees, as dealers should distribute fertiliser under existing rules.

State Minister for Fisheries and Livestock Sultan Salahuddin Tuku said there is no shortage and dismissed allegations of corruption over new dealership applications.

Good and promising RMG companies should tap the capital market for long-term financing to diversify their funding sources and reduce heavy reliance on bank loans, speakers at a workshop said on Wednesday.

They said greater access to equity and debt financing could help Bangladesh’s ready-made garment (RMG) companies expand business, create jobs and contribute to economic growth.

The speakers made the remarks at a workshop titled “Expanding RMG’s Financing Horizons: Opportunities in the Capital Market,” jointly organised by the Dhaka Stock Exchange (DSE) and Swisscontact at the DSE Training Academy.

Senior officials of leading member companies of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), top officials of the DSE and merchant bankers attended the event.Subscribe To News

Speaking at the opening of the workshop, DSE Managing Director Nuzhat Anwar said the capital market was not merely a platform for investment but an important source of long-term financing for economic growth and private-sector expansion.

“The capital market should not be limited to IPOs or the equity market; rather, it should expand opportunities for various forms of financing, including bonds,” she said.

Although discussions on developing an effective bond market had continued for years, recent initiatives by the current commission and relevant stakeholders created fresh opportunities to advance the sector, she said.

She called for reviewing policy and regulatory constraints to make capital-market financing more effective, including the use of IPO proceeds and refinancing opportunities.

“The main goal of such discussions is to identify the existing limitations of the capital market based on the needs and practical experiences of entrepreneurs and take effective initiatives to resolve them,” added Ms Anwar.

BKMEA Deputy Secretary Md Harunur Rashid said industrial enterprises remained largely dependent on banks, limiting the ability of many businesses to fully utilise their growth potential.Bangladesh economic report

“The capital market can be an effective alternative source of long-term financing,” he said.

Listing good and promising companies would support business expansion, create employment and accelerate economic growth, Mr Rashid said.

He, however, stressed the need to ensure sustainable business growth after listing to maintain investor confidence.

Swisscontact Progress Project Team Leader Farzana Amin said the organisation had been supporting the RMG sector for nearly two decades and that capital-market financing should be considered alongside bank loans.

Swisscontact plans to provide end-to-end support to RMG companies interested in accessing the capital market, she said.

The organisation aims to develop several RMG companies as role models within the next year to encourage other businesses to seek financing from the capital market, she added.

Bangladesh Merchant Bankers Association (BMBA) President and LankaBangla Investments CEO Iftekhar Alam outlined opportunities for raising long-term capital through IPOs and the structural challenges facing the capital market.

He discussed the listing process, including eligibility for main-board IPOs and qualified investor offers (QIOs) on the SME platform, company valuation, fund utilisation, subscription, share allotment and lock-in requirements.

Bidowra Tahmin Khan, team leader of Swisscontact’s INSPIRE Project, said Swisscontact would provide advisory and technical assistance in coordination with the DSE, Bangladesh Securities and Exchange Commission (BSEC) and other stakeholders to help promising RMG and textile companies access the capital market.

Swisscontact has been working with Bangladesh's RMG and textile sector for around 20 years, focusing on compliance, skills development and the green transition, she said.

Bangladesh and Hong Kong yesterday signed an Investment Promotion and Protection Agreement (IPPA) with an aim to increase and safeguard bilateral investment.

Khandakar Abdul Muktadir, commerce minister, and Algernon Yau, secretary for commerce and economic development of Hong Kong, signed the deal during the opening session of the 11th Belt and Road Summit 2026 held in Hong Kong.

Hong Kong is currently the seventh-largest source of investment in Bangladesh

The agreement is expected to further strengthen the protection of mutual investments and capital of investors from Bangladesh and Hong Kong, according to a statement from the commerce ministry.

At the same time, it is expected to create a more institutionalised investment environment between the two sides and open up new opportunities for economic cooperation.

Hong Kong is currently the seventh-largest source of investment in Bangladesh.

The new agreement is expected to help increase investment from Hong Kong in Bangladesh.

In particular, there is potential for increased investment flows into promising sectors, including the ready-made garment and textile industries.

It may be noted that Bangladesh has attracted approximately $750 million in foreign direct investment from Hong Kong over the past five years. Of this amount, $122 million was received in 2025 alone.

Swisscontact, an international development organisation, has announced plans to offer advisory and technical support to promising ready-made garment (RMG) companies looking to raise long-term financing through Bangladesh's capital market.

Speaking at a workshop today (9 September), Farzana Amin, team leader of Swisscontact's Progress project, said the organisation aims to develop several RMG companies as role models over the coming year, guiding them through the process of entering the capital market.

She was speaking at a workshop titled "Expanding RMG's Financing Horizons: Opportunities in the Capital Market", jointly organised by the Dhaka Stock Exchange (DSE) and Swisscontact at the DSE Training Academy.

"RMG companies need to consider capital market-based financing alongside bank loans," Farzana said, adding that Swisscontact plans to provide end-to-end support to companies interested in accessing the market.

DSE Managing Director Nuzhat Anwar said the capital market should be developed as a major source of long-term financing for private-sector businesses rather than being viewed only as an investment platform.

She stressed the need to expand financing options beyond equities and initial public offerings (IPOs), particularly through the bond market, and called for reviewing existing policy and regulatory constraints, including the use of IPO proceeds and opportunities for refinancing.

BKMEA Deputy Secretary Md Harunur Rashid said industrial companies remain heavily dependent on bank financing, which often limits their ability to raise sufficient funds for business expansion.

He said bringing viable companies to the capital market could help them expand operations, create employment and contribute to economic growth. However, maintaining sustainable business growth after listing would be essential to preserving investor confidence.

BMBA President and LankaBangla Investments CEO Iftekhar Alam discussed the process of raising long-term capital under the new listing regulations.

He explained the eligibility requirements for main-board IPOs and SME-board qualified investor offers (QIOs), company valuation, listing procedures, use of raised funds, subscription, share allocation and lock-in requirements.

DSE General Manager of the Market Development Division Saiyid Mahmud Zubayer presented an overview of the country's capital market, DSE's market infrastructure and technological capabilities, and the available equity and debt financing options.

He highlighted IPOs, QIOs, the SME platform, the bond market and direct listing as potential avenues for companies seeking funds for expansion. He also discussed how capital market participation can strengthen corporate governance and enhance a company's credibility.

DSE Chief Technology Officer Md Asifur Rahman said the exchange is providing advisory services and one-to-one counselling to entrepreneurs interested in entering the capital market.

Swisscontact Inspire project Team Leader Bidowra Tahmin Khan said the organisation would work with the DSE, BSEC and other stakeholders to provide advisory and technical assistance to promising RMG and textile companies.

She said Swisscontact has been working with the RMG and textile sectors for around two decades on compliance, skills development and green transition, and plans to use that experience to support companies seeking capital market financing. Swisscontact Bangladesh Deputy Country Director Syeda Israt Fatima and senior officials from the DSE, along with representatives of leading BKMEA member companies, attended the workshop.

The bilateral relations between Bangladesh and China have been elevated to a Comprehensive Strategic Cooperative Partnership (CSCP) because of expanding two-way trade and strategic reasons, Commerce Minister Khandakar Abdul Muktadir said yesterday.

Seventeen important agreements have been signed recently between the two countries, under which various projects -- including the modernisation of Mongla Port and the establishment of a Chinese economic and industrial zone in Chattogram -- are being implemented. Muktadir made these remarks as a panellist at a policy dialogue held during the 11th Belt and Road Initiative (BRI) Summit in Hong Kong.

He also said that Invest Bangladesh has taken an initiative to establish the country’s first overseas investment office in China as part of efforts to strengthen investment ties with the country.

Describing Hong Kong as one of Bangladesh’s important commercial gateways, the minister said Bangladesh must leverage Hong Kong’s role as a bridge between mainland China and global markets.

He said the global economy of the future can be strengthened not through isolation, but through mutual cooperation, sustainable development, and an open trading system.

Speaking at the session on “Building Resilient Trade and Investment Frameworks in a Diverse Global Landscape,” the minister also said that for developing countries like Bangladesh, economic resilience is not merely about responding to crises.

Rather, it means creating a system capable of adapting to global changes while generating employment and new opportunities, according to a statement from the commerce ministry.

Referring to the preparations for graduation from the least developed country (LDC) category, Muktadir said Bangladesh is now moving towards growth driven by productivity, innovation, and competitiveness.

Four areas are being given particular priority to achieve this goal. These include export diversification, development of connectivity infrastructure, attracting productive investment, and a green economic transition.

Alongside ready-made garments, Bangladesh is working to integrate pharmaceuticals, leather and leather goods, agro-processing, light engineering, information technology, and man-made fibre industries into global value chains.

The minister said Bangladesh welcomes investment that can facilitate technology transfer, skills development, and the integration of local industries into international supply systems.

Under the BRI framework, he noted, there are significant opportunities for partnerships in economic zones, logistics, and renewable energy.

He also emphasised expanding digital trade, cross-border e-commerce, and digital payment systems to connect small and medium-sized enterprises, women entrepreneurs, and local businesses with global markets.

Calling for future trade and investment frameworks to be made more environmentally sustainable in response to climate change, he said low-carbon production, sustainable logistics, and green infrastructure would form the foundation of the future economy.

In his speech, the minister emphasised export diversification, investment in productive sectors, and stronger sustainable partnerships to address global challenges such as geopolitical instability, supply-chain disruptions, and climate change.

Bangladesh has also highlighted the need to expand regional and global connectivity while building a green and inclusive economic framework to maintain competitiveness in a changing global economy.

The number of women working in Bangladesh's banking sector continues to rise, but their representation in senior positions remains comparatively low, according to a Bangladesh Bank report.

At the end of January-June this year, the number of female officers and employees at 61 scheduled banks stood at 35,971, up 910, or 2.60%, from the previous six-month period.

The findings were published in the central bank's semi-annual report on gender equality by its Sustainable Finance Department.

According to the report, the 61 scheduled banks had a total workforce of 2,17,818 employees at the end of January-June 2026. Women accounted for 35,971 of them, or 16.51% of the total workforce.

In July-December 2025, the number of female employees in the banks was 35,061, meaning their number increased by 910 in six months.

Among different categories of banks, private commercial banks employed 23,524 women, accounting for 16.12% of their 145,898-strong workforce.

State-owned commercial banks employed 9,471 women, representing 17.06% of their total workforce – a higher proportion than that of private commercial banks.

Foreign commercial banks had a comparatively smaller number of female employees, with 931 women working across nine banks. However, they had the highest proportion of women in their workforce, at 24.81%.

Women's representation remains low at senior levels

Despite the increase in the overall number of female employees, women's representation in senior positions remains relatively low, the report found.

During January-June, women accounted for 13.14% of bank board members. Their representation was 16.99% at entry-level positions and 16.37% at mid-level positions.

In contrast, women accounted for only 10.55% of employees at senior-level positions.

This means women's representation remains lower at senior levels than at entry and mid-level positions.

Age-wise, the data showed stronger participation among younger female employees. Women accounted for 21.10% of employees aged below 30, compared with 11% among employees aged above 50.

The report also showed that the employee turnover rate among female workers in the banking sector stood at 13.87% during January-June.

Banks take initiatives to support women employees

Banks have taken various initiatives to improve the working environment for female employees.

According to the report, all scheduled banks provide six months of maternity leave for female officers and employees.

All banks also have policies on preventing sexual harassment and raising awareness about the issue.

Of the 61 scheduled banks, 37 have established childcare facilities, either independently or jointly, for the children of female employees.

In addition, 36 banks have their own transport facilities to help female employees commute after designated working hours.

During January-June 2026, 49 scheduled banks organised awareness training on gender equality.

The Bangladesh Bank report said that although women's participation in the banking sector is increasing, there is still scope to improve their representation in senior positions.

The central bank is encouraging banks to take various initiatives to create a supportive working environment for female employees and ensure greater gender equality in the banking sector.

Bangladesh’s mobile network quality mostly met regulatory standards in July, but a long-delayed assessment by the Bangladesh Telecommunication Regulatory Commission (BTRC) found significant differences between operators’ reported figures and the regulator’s own measurements.

The assessment compared Quality of Service (QoS) data reported by the country’s four mobile operators -- Grameenphone, Robi, Banglalink and Teletalk -- with network data collected by the BTRC.

It was BTRC’s first QoS assessment in more than four years and the first to publish network performance data at national, district and upazila levels.

However, both BTRC and industry officials said the assessment used data from the regulator’s Telecom Monitoring System (TMS), rather than standard drive tests.

The two methods differ in how they measure network quality, collect data, select samples and cover different areas. Industry officials said TMS data may not always reflect customers’ experience, especially when operators have different levels of network coverage and different customer bases.

The assessment report found that most operators met key national benchmarks. However, differences between operators’ reported figures and BTRC’s measurements, the lack of raw data and uneven performance across locations raise concerns.

TELETALK MISSES TWO 4G STANDARDS

Teletalk was the only operator to fall below regulatory standards on two major 4G indicators in July.

Its 4G Radio Resource Control (RRC) success rate was 98.49 percent, below the required 99 percent. Its 4G data non-retainability rate was 0.64 percent, higher than the permitted 0.5 percent.

RRC success measures how often devices successfully connect to a 4G network, while non-retainability measures unexpected data disconnections.

BTRC could not independently verify Teletalk’s figures because its raw or binary files were incomplete. The report repeatedly marked the data as “Incomplete raw/binary file from Teletalk” at national, district and upazila levels.

Teletalk’s performance also varied sharply across locations. Its 4G RRC success rate met the regulatory standard in only 12 of the 64 measured upazilas. At the upazila level, just 136 of 537 measurements met the requirement.

Despite these weaknesses, Teletalk reported an average 4G download speed of 11.20 Mbps, well above the minimum requirement of 3.50 Mbps.

Its CSFB success rate -- the rate at which 4G devices successfully switch to older networks to make voice calls -- was 99.64 percent.

GRAMEENPHONE MEETS STANDARDS

Grameenphone remained within BTRC’s required standards, although the assessment found differences between some of its reported figures and the regulator’s measurements.

BTRC recorded Grameenphone’s 2G call drop rate at 0.33 percent, exactly matching the company’s figure. Its average 4G download speed was 8.23 Mbps, compared with 8.22 Mbps reported by the operator.

The largest gap was found in the VoLTE (voice over long-term evolution) call drop rate. BTRC measured it at 0.38 percent, while Grameenphone reported 0.04 percent. Both figures were below the regulatory limit of 0.5 percent.

Grameenphone’s CSFB success rate was 98.65 percent, above the required 98 percent.

The assessment also found notable differences in some upazilas, particularly in Bandarban and Rangamati.

Tanveer Mohammad, Grameenphone’s chief corporate affairs officer, said that improving QoS was an ongoing process and that the company remained committed to enhancing the customer experience.

“Grameenphone has met all BTRC QoS criteria in its latest reports, except in some areas of the Hill Tracts, where we are working to improve the network,” he said.

ROBI DATA FACES VERIFICATION PROBLEM

Robi also faced data and network quality challenges during the assessment.

BTRC measured Robi’s average 4G download speed at 6.85 Mbps. This was the lowest among the operators whose data BTRC could independently verify, but it was still above the 3.50 Mbps minimum.

Robi’s 2G call setup success rate was 99.29 percent, only slightly above the 99 percent benchmark. The assessment also found differences between Robi’s reported figures and BTRC’s measurements in several locations.

BTRC could not independently verify data from 41,819 Robi cells because the required raw or binary files were unavailable.

As operators generally keep such files for only seven days, BTRC used Robi’s processed data instead. The regulator said the problem would be addressed from the following month through daily data reconciliation.

Robi’s Chief Corporate and Regulatory Officer Shahed Alam, questioned the use of TMS data alone to assess network quality.

He said the results could be affected by the number and geographical spread of measurements. As a result, operators with limited coverage or smaller datasets could appear to perform better than those operating wider networks with more traffic and customers.

“Comparing operators solely based on TMS-derived QoS figures can lead to misleading conclusions,” he said.

Shahed also said there was no established international regulatory practice of using TMS data alone to determine or compare overall QoS.

“The credibility of any QoS assessment depends on the methodology, measurement coverage, sampling framework, transparency and representativeness of the underlying data,” he said.

BANGLALINK SHOWS MOST CONSISTENT RESULTS

Banglalink recorded the most consistent results across the key indicators measured by BTRC.

The regulator measured its 2G call setup success rate at 99.73 percent and its average 4G download speed at 8.61 Mbps.

Its 2G call drop rate was 0.36 percent, while its 4G RRC success rate was 99.84 percent. Its CSFB success rate stood at 99.19 percent and its SMS completion rate at 99.81 percent.

At the national level, the differences between Banglalink’s reported figures and BTRC’s measurements were generally small.

However, the assessment found that six upazilas, including several in Bandarban, had “No Service” on both 2G and 4G networks.

Bangladesh Export Processing Zones Authority (Bepza) Economic Zone-2 in Mirsharai, Chattogram, has seen its first export with a $50,000 shipment of tobacco machinery to Indonesia, marking the start of commercial operations at the zone.

Lee's Tobacco Machinery Company Ltd, the zone's first exporting enterprise, shipped the machinery yesterday (8 september) after obtaining its export permission from the Bepza on 3 September.

With the export, Economic Zone-2 has entered its operational phase, bringing the number of operational Bepza industrial zones to 10 – eight Export Processing Zones (EPZs) and two Economic Zones.

Md Whaheduzzaman, executive director of Bepza Economic Zone-2, said the export could help Bangladesh expand trade with Indonesia and diversify its export destinations.

"Bangladesh's exports to Indonesia are comparatively low. In this context, the commencement of exports from Bepza Economic Zone-2 to Indonesia is expected to contribute positively to expanding Bangladesh's export market and diversifying its export destinations," he said.

Established with investment from the United Arab Emirates and Singapore, Lee's Tobacco Machinery is a 100% export-oriented enterprise that manufactures machinery used in tobacco product manufacturing.

Bepza approved the company on 22 January 2025. It has invested $3.72 million and currently employs 29 officers, employees and workers.

Bepza Economic Zone was established on 1,138.55 acres in Mirsharai and was later divided into Economic Zone-1 and Economic Zone-2 to facilitate more effective administrative and operational management.

Economic Zone-1 has allotted plots to 47 enterprises, of which 15 have started production.

In Economic Zone-2, 18 enterprises have been allotted plots. Lee's Tobacco Machinery has started commercial operations, while three more enterprises are expected to begin production and exports shortly. The remaining 14 enterprises are under construction.

Bangladesh's trade deficit widened in July, the first month of the current fiscal year, mainly due to higher imports of petroleum products and fertiliser, while exports declined.

The trade deficit rose to $2.09 billion in July, compared with $1.5 billion in the same month of the previous fiscal year, according to balance of payments data released by the Bangladesh Bank yesterday (8 September).

According to BoP data, imports grew by 8.6% in July, while exports declined by 1.9%. As imports exceed exports, the trade deficit widens.

Petroleum product imports amounted to $1.37 billion in July, up from $750 million in the same month a year earlier, representing an increase of more than 83%.

Meanwhile, fertiliser import costs rose also by 50% to $187 million in July, compared with $125 million a year earlier.

Dr Zahid Hussain, former lead economist at the World Bank's Dhaka office, said a single month's balance of payments data was not enough to draw any significant conclusion.

"However, the trade deficit has widened because imports increased while exports declined. The deficit was also lower in the same period of the previous fiscal year," he said.

Current account surplus

Bangladesh's current account surplus stood at $64 million in the first month of the current fiscal year, down from $125 million in the same month of the previous fiscal year.

The surplus declined despite higher remittance inflows, mainly because the trade deficit exceeded $2 billion. However, the key factor keeping the current account in surplus was the strong inflow of remittances.

Bangladeshis working abroad sent home $2.86 billion in remittances in July, compared with $2.48 billion in the same month a year earlier. This represents a 15.4% year-on-year increase in remittance inflows.

Dr Zahid Hussain said the current account remained in positive territory because of the rise in remittances.

"The current account could have gone into deficit because of the large trade deficit, but the increase in remittance inflows prevented that," he said.

Financial account turns negative

The financial account recorded a deficit of $677 million in July, compared with a deficit of $746 million in the same month of the previous fiscal year.

The financial account had remained in surplus until June of the previous fiscal year.

Dr Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management (BIBM), said the main reason for the financial account deficit was a $536 million net deficit under deposits, money and banking-related flows (DMBs and NBDCs).

"This means payments to overseas banks increased, resulting in higher outflows of funds from the country," he said.

In July of the previous fiscal year, this component had recorded a surplus of $53 million.

Bangladesh Bank data show that the negative financial account pushed the overall balance of payments into deficit.

The government has increased monthly allowances and expanded beneficiary coverage under several social safety net programmes for the 2026-27 fiscal year, including support for older people, widows and deserted women, and people with disabilities.

The one-time medical assistance for critically ill patients has also been doubled to Tk1 lakh.

Social Welfare Minister AZM Zahid Hossain disclosed the information in response to a starred question from Netrokona-3 lawmaker Rafiqul Islam Hilaly in parliament today (8 September).

Higher allowances, more beneficiaries

The monthly allowance for older people has been increased from Tk650 to Tk700, while the number of beneficiaries has risen from 61 lakh to 62 lakh.

For widows and deserted women, the monthly allowance has also increased from Tk650 to Tk700, with beneficiary coverage expanding from 29 lakh to 30 lakh.

The allowance for people with disabilities has been raised from Tk900 to Tk1,000 a month. The number of beneficiaries has also increased from 34.5 lakh to 38 lakh.

The government has also increased both the rates and coverage of scholarships for students with disabilities.

Under the revised structure for FY2026-27, monthly scholarships will be Tk1,000 for primary-level students, Tk1,100 for secondary-level students, Tk1,200 for higher-secondary students and Tk1,400 for university-level students.

The number of scholarship recipients has been increased from 81,000 to 1 lakh.

Meanwhile, the number of beneficiaries under the financial assistance programme for critically ill patients suffering from cancer, kidney disease, liver cirrhosis, stroke-induced paralysis, complex heart disease, leukaemia and thalassaemia has been raised from 60,000 to 65,000.

The one-time emergency medical assistance for such patients has been doubled from Tk50,000 to Tk1 lakh.

Govt moves to prevent misuse of safety net funds

The minister said the government has taken steps to improve the living standards of disadvantaged and low-income people while ensuring greater transparency in the distribution of social safety net funds.

He said beneficiary information must now be verified against the national identity database to ensure assistance reaches genuine recipients.

This has helped prevent ineligible people from receiving benefits through political or personal influence, he said.

Applications are now accepted online, while lists of poor and disadvantaged people are prepared and updated through open verification committees at union and ward levels.

The government-to-person (G2P) payment system has also been introduced to transfer assistance directly to beneficiaries without intermediaries.

"Under this system, assistance is deposited directly into beneficiaries' bank or preferred mobile financial service accounts, eliminating intermediaries and commission-based practices," the minister said.

He said the government would continue to use digital technology, expand social safety net programmes and strengthen monitoring of beneficiary selection to ensure support reaches those who need it most.

Overall provisioning shortfall against loans in Bangladesh's banking system overran Tk 2.0-trillion mark with a 16-percent or Tk 309.16 billion rise in the first half of 2026.

Economists say such deficit in provisioning reflects the weakening lending capacity of banks and causing vulnerabilities across the economy.

The aggregate amount of provisioning shortfall crossed Tk 2.0 trillion again, indicating poor credit discipline in many of the banks due mainly to growing non-performing loan (NPL) buildup in the industry.

According to the central bank's latest statistics, the volume of provisioning shortfall in the banking sector came to Tk 2.22 trillion as on June 30 this year. It was Tk 1.91 trillion just six months ago.

The shortfall was Tk 2.05 trillion on March 31 this year.

Banks, however, usually keep the required provisions against both classified and unclassified loans from their operating profits as guardrails mitigate risks.

As per regulations, banks are required to set aside a portion of their profits as provisions to cover potential loan losses. When a bank fails to maintain the requisite level of provisions, the shortfall is recorded as a provision deficit, signalling a weakening financial health and heightened risks for depositors and the broader economy.

Under the existing BB rules, the banks have to keep 0.25-percent to 5.0- percent provision against loans under general category, 20 per cent against substandard category, 50 per cent against doubtful loans, and 100 per cent against bad or loss category of credits.

With NPLs rising rapidly and profits remaining under pressure, many scheduled banks have struggled to meet these regulatory obligations.

According to the central bank's reports, private commercial banks (PCBs) recorded a higher provisioning shortfall than state-owned commercial banks (SoCBs) during the period under review.

The total provisioning shortfall of PCBs rose to Tk 1.48 trillion as of June 30, from Tk 1.21 trillion six months earlier, while the provisioning shortfall of SoCBs increased to Tk 746.34 billion, from Tk 703.64 billion.

On the other hand, foreign commercial banks (FCBs) were able to maintain a provisioning surplus, reflecting their comparatively stronger financial condition and risk-management practices.

The total provisioning surplus of FCBs rose to Tk 5.80 billion during the period under review from Tk 3.38 billion by the end of December 2025.

Specialized banks (SBs), meanwhile, maintained a provisioning surplus of Tk 458.60 million as of June 30, compared with provisioning shortfalls of Tk 2.22 billion as of March 31, 2026, and Tk 2.01 billion at the end of December 2025.

"Higher volume of NPLs pushed up the amount of provisioning shortfall of the banks," a senior official at the Bangladesh Bank (BB) told The Financial Express (FE), while replying to a query.

During the period under review, the volume of NPLs in the banking system grew by nearly 9.0 per cent to Tk 6.06 trillion from Tk 5.57 trillion as on December 31, 2025. It was Tk 5.88 trillion as on March 31, 2026.

"NPLs will have to be reduced to improve the provisioning situation in the banking system," the central banker explains.

He also says the central bank is working to reduce the volume of classified loans through both NPL resolution and effective management.

Under NPL resolution, a formal market for buying and selling bad loans will be created if parliament enacts the Distressed Asset Management Act (DAMA) 2026, according to the central banker.

The central bank has already urged the finance minister to take necessary steps to place the proposed amendment to the Artha Rin Adalat Ain 2003 and the new DAMA 2026 before parliament during its ongoing session, out of exigency.

Bangladesh Bank Governor Md. Mostaqur Rahman has issued a Demi-Official (DO) letter to the finance minister requesting the enactment of the proposed amendments to the Money Loan Court Act as well as the proposed new DAMA during the ongoing session of parliament.

Talking to the FE, Md. Ezazul Islam, director-general of Bangladesh Institute of Bank Management (BIBM), said the widening provisioning deficit reflects a structural crisis rooted in corruption in the banking sector, poor credit discipline, years of inadequate supervision and regulatory relaxations.

"Unless defaulted loans are recovered and governance improves, the growing provisioning shortfall will continue to weaken banks' lending capacity and increase vulnerabilities across the economy," notes Dr Islam, also a former executive director of the central bank.

Customers of Sammilito Islamic Bank withdrew Tk670 crore from their deposits over the past two days, against withdrawal applications totalling Tk2,345 crore, according to bank sources.

The bank's branches across the country processed withdrawals yesterday and today (8 September) under normal procedures. Around 14,000 customers withdrew money during the two days, while applications for withdrawals had been submitted by about 37,600 customers, a senior Bangladesh Bank official said.

He said withdrawals increased slightly on the second day as some customers who could not visit branches yesterday came the following day. The bank paid them in full according to their requirements.

Md Abedur Rahman Sikder, managing director of Sammilito Islamic Bank, said the number of customers actually withdrawing money was much lower than the number who had applied.

"Many customers are visiting branches, reviewing the overall transaction situation and leaving without withdrawing their deposits. New customers are also opening deposit accounts at many of our branches," he said.

Sammilito Islamic Bank was formed through the merger of First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank and EXIM Bank. The five banks have a combined 761 branches.

A total of 74,000 applications have been submitted by customers of the five banks, seeking Tk3,925 crore in withdrawals. Bangladesh Bank provided Tk5,000 crore to the new bank on Sunday to facilitate deposit repayments, after which funds were sent from the head office to branches.

On paper, the inflation situation in Bangladesh is improving, but the squeeze on households continues as wage growth has slowed further, lowering real incomes.

Updated figures from the Bangladesh Bureau of Statistics (BBS) show overall inflation fell to 8.26 per cent in August, the second month of the 2026-27 fiscal year.

But wage growth dropped to 8.05 per cent, widening the gap between what people earn and what they pay for goods and services.

August's inflation figure marks the lowest the indicator has hit in 10 months.

Wage growth, meanwhile, has hit its lowest point in seven months.

Data reveals wage growth has now trailed inflation for four and a half consecutive years.

In January 2022, wage growth stood at 5.92 per cent, briefly outpacing overall inflation of 5.86 per cent.

But from the following month, February, onward, spending began outrunning earnings and never looked back.

This prolonged mismatch has steadily eroded the “real income”, or purchasing power, of the public, particularly low-income and limited-income groups.

A point-to-point inflation rate of 8.26 per cent in August implies that a basket of essential goods and services costing Tk 100 last year now costs Tk 108.26.

By contrast, the 8.05 per cent national wage growth rate means someone who earned Tk 100 last year now earns Tk 108.05 this year.

In other words, the cost of living has climbed faster than incomes have grown. That has forced people to either trim their spending or dip into savings.

Selim Raihan, executive director of the South Asian Network on Economic Modeling (SANEM) said: “We would have welcomed a scenario where wage growth kept pace with falling inflation.

“But the current data paints a worrying picture, inflation is placing extra strain on real wages. In effect, even as nominal income rises, higher market costs are eating it away."

With inflation outpacing wage growth for a prolonged stretch, he said real incomes were shrinking “alarmingly”.

"People's spending power is shrinking. Many are dipping into savings, others have none left to dip into."

Jahangir Alam Khan, director of the Dhaka School of Economics, said: "Prices across the board remain steep. On top of that, everyone is paying more for gas and electricity.

“The bigger issue is that even after the peak Boro harvest season, prices of rice, our staple food, haven't come down."

The economist recommended strengthening market monitoring rather than relying solely on tight monetary policy to keep inflation in check.

Inflation, Wages In Flux

During the July Uprising in 2024, headline inflation spiked to 11.66 per cent before fluctuating between 9 per cent and 12 per cent amid the political transition, while wage growth remained anchored around 8 per cent.

Fiscal 2025-26 opened with single-digit inflation that oscillated between 8 per cent and 9.5 per cent, before moderating to 8.32 per cent in July and 8.26 per cent in August.

Meanwhile, the BBS wage index hovered near 8 per cent throughout the year, easing from 8.22 per cent in July to 8.05 per cent in August.

The bulk of the national workforce operates within the informal sector, where wage-based employment predominates.

Informal Sector Bears The Brunt

The bulk of the country's workforce operates in the informal sector, almost entirely on a wage basis.

According to BBS's latest labour force survey, 84 per cent of the employed population works in the informal sector.

Roughly 88 per cent of rural workers and 74 per cent of urban workers fall into this category.

This vast, socially unprotected workforce bears the brunt of rising prices more than anyone else.

The BBS compiles its wage rate index monthly, gathering data across 44 occupational categories, including farm labourers, transport workers, fishermen, day labourers and construction workers.

As per August data, wage growth was lowest in the industrial sector at 7.97 per cent. The services sector saw wages grow 8.25 per cent, while agriculture recorded 8.07 per cent growth.

The wage rate index has its limitations. BBS's index does not represent the earnings of the entire labour market, salaried employees and relatively higher-income professionals fall outside its scope.

As a result, the index largely captures the pressure between income and inflation for lower-wage workers. It offers no clear picture of how much strain the middle class is under.

The World Bank today (8 September) recommended a phased approach to tariff reform in Bangladesh, with reductions in duties on intermediate inputs, lower protection for highly protected consumer goods and a pre-announced multiyear phase-out of para-tariffs to make the country's trade regime more competitive.

The recommendations were made in a new World Bank study titled "Bangladesh Trade Policy at a Crossroads: Evidence for the National Tariff Policy, LDC Graduation, and the Next Generation of Trade Agreements," presented by Dr Nora Dihel, Senior Economist for Macroeconomics, Trade and Investment at the World Bank, at a programme here today.

The Policy Research Institute of Bangladesh (PRI), in collaboration with the World Bank Group organized the programme at its Banani office in the city.

The study recommends that Bangladesh gradually should reduce remaining regulatory and supplementary duties, known as para-tariffs, and eventually brings its tariff structure closer to the levels of regional competitors, including India, China and Vietnam.

According to the study, Bangladesh's trade-weighted average Most Favoured Nation (MFN) tariff stands at 7.0 percent across 5,666 tariff lines based on FY2026 data. However, after para-tariffs are taken into account, average nominal protection rises to 15.4 percent.

The gap is particularly significant in sectors such as footwear, hides and skins, stone and glass, and transportation equipment. In the footwear sector, for instance, nominal protection reaches 70.4 percent, compared with an MFN tariff of 25 percent.

The World Bank recommended that tariff reform be accompanied by stronger domestic revenue mobilisation to manage the fiscal implications of lower import duties.

It also called for the removal of non-tariff barriers, liberalisation of services trade and adjustment support for workers and sectors affected by trade liberalisation.

Using its Tariff Reform Impact Simulation Tool (TRIST), the World Bank estimated that a 10 percent reduction in customs duties alone would reduce import tax revenue by around $189 million.

If the same reduction were combined with full removal of para-tariffs, the fiscal cost would rise to around $1.4 billion, it said.

The study estimated that complete elimination of both customs duties and para-tariffs would cost about $3.7 billion, equivalent to 40.8 percent of import tax revenue or 0.83 percentage points of GDP.

The World Bank therefore stressed the need for a carefully sequenced reform programme rather than an abrupt reduction in border protection.

The study also recommended that Bangladesh pursue deeper trade agreements to prepare for its graduation from the Least Developed Country (LDC) category.

Bangladesh is scheduled to graduate from LDC status on 24 November, 2026, although the government has requested a deferral of at least three years.

The study found that unilateral trade reforms, particularly deeper cuts in input tariffs and removal of para-tariffs on intermediate goods, could increase real GDP by up to 0.52 percent.

A deeper multi-partner free trade agreement strategy, benchmarked against Vietnam's trade agreements, could raise real GDP by 0.73 percent, or around $3.2 billion, with about two-thirds of the gains coming from agreements with RCEP and ASEAN members.

The World Bank recommended that Bangladesh combine domestic tariff reforms with an active strategy to secure preferential market access and expand its participation in regional and global trade arrangements after LDC graduation.

The study was presented at a high-level discussion organised by PRI, bringing together policymakers, economists, researchers and business leaders to discuss Bangladesh's National Tariff Policy, LDC graduation and the next generation of trade agreements.

PRI Chairman Dr. Zaidi Sattar chaired the programme, while Md. Fazlul Hoque, Administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), attended as the chief guest.

The programme also brought together distinguished economists, researchers and business leaders.

PRI Distinguished Fellow Dr. Ahsan H. Mansur delivered the closing remarks.

Bangladesh and Australia on Tuesday discussed various bilateral and multilateral issues, including cooperation in trade, investment, energy, labour mobility, and regional and global issues.

Australian High Commissioner to Bangladesh Susan Ryle, who paid a courtesy call on State Minister for Foreign Affairs Humaiun Kobir at his office, reaffirmed that Australia will continue to support Bangladesh regarding vocational training and health issues.

The envoy said Australia will always be with Bangladesh in resolving the Rohingya crisis as well.

She also mentioned that Australia and Bangladesh are closely cooperating at the UN and other international forums, said the Ministry of Foreign Affairs.

State Minister Humaiun sought closer cooperation and collaboration between Australian TAFE (Technical and Further Education) institutions and our Technical Training Centres (TTCs), as well as in training for Bangladeshi caregivers.

He praised Australia's continued support in addressing the Rohingya humanitarian crisis and hopes to continue working closely with Australia towards a sustainable solution to this prolonged crisis.

Bangladesh’s economic activity fell to a 23-month low in August, reversing July’s rebound, as exports weakened and energy disruptions weighed on manufacturing and services, according to the latest Purchasing Managers’ Index (PMI).

The headline Purchasing Managers’ Index (PMI) fell 7.9 points month-on-month to 49.9 in August, its weakest reading since September 2024.

The index, jointly developed by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB), last month dropped below the 50-point threshold that separates expansion from contraction.

The decline follows a sharp rise in July, when the index gained 4.9 points to 57.8 on a strong rebound in manufacturing alongside continued growth in agriculture and services.

Manufacturing had led July’s expansion, jumping 16.6 points to 65.4 – the strongest turnaround in the survey’s history. It reversed sharply in August, falling 18.0 points to 47.4.

New export orders, output, input purchases, imports and employment all fell back into contraction, while input prices continued to rise at a faster pace.

Services, which had expanded for 22 consecutive months, also slipped into contraction, falling 6.8 points to 49.2.

New business and business activity continued to grow but at slower rates, while employment contracted sharply.

In contrast, agriculture remained a bright spot, extending its expansion for the 12th straight month by rising 1.3 points to 56.5 in August from 55.2 in July.

Construction, which had stayed marginally in contraction throughout July at 49.3, moved into expansion in August, reaching 52.4.

Meanwhile, the Future Business Index, which had shown strong optimism across all sectors in July, indicated a slight decline in sentiment in August.

“The August PMI reading of 49.9 indicates that Bangladesh’s economic activity remained broadly near the neutral threshold, despite temporary pressures on manufacturing and services,” said M Masrur Reaz, chairman and CEO of PEB.

“Agriculture continued expanding, while construction returned to growth, highlighting underlying economic resilience.”

He said the moderation in manufacturing partly reflected weaker monthly exports and temporary energy disruptions associated with LNG infrastructure maintenance.

He added that improved energy availability, stronger export demand and supportive measures to restore business confidence could help the economy regain momentum.