Bangladesh’s readymade garment exports to the United States, the country’s largest single-market destination, grew more than 15 percent year-on-year to $7.08 billion in the January-October period, according to US government data.

Local apparel makers say the surge was largely driven by front-loaded shipments ahead of the Trump administration’s reciprocal tariff enforcement.

A temporary 10 percent baseline tariff was applied by the US from part of April to the entire July before higher country-specific rates took effect on August 7 last year. It added with the existing 16 percent, taking the total rate to around 26 percent.

During the low baseline tariff period, local apparel makers say American buyers brought in larger-than-usual consignments. Apparel exporters said this rush pushed overall shipments in the January-October window above normal levels, somewhat masking the basic trend for the rest of the year.

For Bangladesh, a punishing 35 percent reciprocal rate was initially announced in April last year. It was later revised to 20 percent after bilateral negotiations.

The growth came amid a largely flat US apparel market. Total imports from the world by the United States declined 0.61 percent year-on-year to $66.63 billion during the January-October period last year, according to the Office of Textiles and Apparel (OTEXA), an agency under the US Department of Commerce.

Similar to Bangladesh, most other major exporting countries also saw positive growth in the American market during the period.

Vietnam’s exports to the US rose 11.5 percent to $14.16 billion, India’s 8.6 percent to $4.39 billion, Pakistan’s 12.3 percent to $2.02 billion, Indonesia’s 10.1 percent to $3.98 billion, and Cambodia’s 25.5 percent to $4.04 billion.

China was the exception, with exports to the US falling 32.4 percent to $9.49 billion.

During the period, unit prices of Bangladeshi garments declined slightly, reflecting intense competition and cautious buying by US retailers, according to OTEXA data.

The unit price for Bangladeshi items declined 0.63 percent. The decline for Vietnam was 0.46 percent and 10.47 percent for China. Cambodia’s price declined by 7.26 percent, Pakistan’s 6.85 percent and Indonesia’s 2.72 percent, show OTEXA data.

In the case of India, the unit price increased by 1.57 percent during January-October.

Despite the strong headline growth, exporters said momentum began to ease after August. Shipments weakened in October and November, following the enforcement of the higher tariffs.

Anwar-ul Alam Chowdhury (Parvez), former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the January-October figures do not fully reflect the year’s underlying trend.

“The growth was concentrated in the early months, when shipments were rushed ahead of tariff enforcement,” he said.

Parvez added that export performance slowed after August but expects shipments to stabilise after Bangladesh’s general election next month, as international buyers are likely to place full work orders once the heated political atmosphere cools off.

Meanwhile, retail sales in the United States posted solid year-on-year growth in November, with early holiday-season activity keeping results on track to meet the National Retail Federation’s (NRF) 2025 spending forecast, the organisation said in a statement recently.

It means the retail buying is likely to consume the fashion inventory, prompting the US buyers to place fresh orders.

“Retail sales showed healthy year-over-year gains in November, while month-on-month data was largely flat,” NRF President and CEO Matthew Shay said.

For large apparel manufacturers like Bangladesh, it is positive news on the export front.

Shay said, “Shoppers looking for online deals may have held back a bit until Cyber Monday, which fell in December this year due to a late Thanksgiving, likely shifting some spending. Consumers are focusing on value and spending carefully during the holiday period, and retailers are offering products at competitive prices to fit every budget.”

“We remain confident in our holiday forecast as well as our retail sales projections for the full year,” he concluded.

The banking sector continues to be one of the most fragile segments of Bangladesh's economy, marked by weak capital adequacy, deteriorating asset quality and falling profitability, according to an assessment by the Centre for Policy Dialogue (CPD).

The findings were presented by CPD Executive Director Fahmida Khatun at a press conference at the organisation's Dhaka office today (10 January), as part of CPD's independent review of the state of the economy for the first half of the 2025–26 fiscal year.

CPD warned that persistent weaknesses in the banking system pose risks to overall economic stability and stressed the need for swift enactment and implementation of reform legislation.

It said restoring Bangladesh Bank's independence and authority, along with consistent application of the bank resolution framework, is essential to bring discipline back to the sector.

According to CPD, most banks are struggling to maintain adequate risk-based capital, with capital positions continuing to weaken across the sector.

Asset quality has also deteriorated significantly, with defaulted loans now accounting for about 36% of total loans, amounting to Tk5,44,549 crore – nearly 12 times higher than the level recorded in 2015.

An asset quality analysis of six banks showed that in some cases, the volume of distributed loans and defaulted loans has become almost equal, indicating severe financial stress.

Loan loss provisioning remains inadequate, covering only around 38% of classified loans, further weakening banks' ability to absorb losses.

At the same time, CPD noted that although liquidity is available in the banking system, demand for loans remains low due to prolonged stagnation in investment.

High interest rates and political uncertainty have discouraged private investment, leading to a decline in the loan-deposit ratio and leaving many banks with excess liquidity.

Bank profitability has declined sharply, while asset quality has fallen to its lowest level in nearly three decades, CPD said.

To address the crisis, the government has provided Tk20,000 crore in capital support to facilitate the merger of weak banks.

CPD acknowledged that some reform measures have been initiated, including asset quality reviews in six banks, with reviews already underway in three more and plans to extend the process to 17 banks in total.

It also noted steps to strengthen depositor protection by increasing deposit insurance coverage from Tk1 lakh to Tk2 lakh, as well as amendments to the Bank Resolution Ordinance and the Bank Company Act, 1991 to curb excessive family control and improve governance.

However, CPD cautioned that implementation remains the biggest challenge.

Political influence, vested interest groups, limited regulatory capacity and weak depositor confidence continue to undermine reform efforts.

It stressed the need to quickly translate legal reforms into fully enacted laws and ensure Bangladesh Bank's independence so that reforms are sustained and weak banks are not given concessions.

The non-life insurance sector is gearing up for a fresh start as the Insurance Development and Regulatory Authority (IDRA) enforces a zero-commission policy, effective 1 January, suspending the licenses of individual agents, aiming to boost transparency, curb malpractice, and restore discipline across the industry.

Industry stakeholders believe that proper enforcement of the decision could help revive business growth and rebuild confidence in the sector.

Earlier, based on a proposal from the Bangladesh Insurance Association (BIA), the regulator adopted a policy to set zero per cent commission for individual agents in non-life insurance.

Although the issue of eliminating agent commissions had been discussed several times in the past, the initiative could not be finalised. This time, however, chief executives of general insurance companies have given both written and verbal assurances to the regulator, increasing optimism that the policy will be implemented effectively.

As part of the process, the IDRA had instructed all general insurance companies to submit proposals to suspend individual agent licenses. The final decision was taken after reviewing the information and recommendations submitted by the companies.

Brig Gen (retd) Md Shafique Shamim, secretary general of the Bangladesh Insurance Forum (BIF) and chief executive officer of Sena Insurance, told TBS that the move will significantly improve insurers' claims-paying capacity.

Currently, Bangladesh has 82 insurance companies, including 46 non-life insurers, of which 43 are listed on the stock market. Non-life insurers provide coverage for risks such as property, health, motor, marine, engineering, and liability, protecting individuals and businesses from financial losses arising from accidents, natural disasters, and other unforeseen events.

Monitoring mechanism in place

To support effective implementation, the Bangladesh Insurance Forum (BIF), an association of insurance company CEOs, has formed a five-member vigilance team. It will monitor compliance and report any violations of the zero-commission policy to IDRA, which will then take action in line with the Insurance Act 2010.

"Previously, out of Tk100 in business, many companies spent as much as 60% on illegal commissions, which severely weakened their ability to settle claims," Md Shafique Shamim said.

He added that with commission expenses now eliminated, company income and financial strength will increase, while operating costs will decline. "Ultimately, this will help raise insurance penetration in the country," he noted.

Shafique further said that since the agency system has now been abolished, the decision is practical and enforceable.

Why was the policy introduced

The decision was finalised at a meeting held on 25 November, attended by IDRA officials, representatives of the Bangladesh Insurance Association, and CEOs of non-life insurance companies. At the meeting, all participating CEOs pledged to operate their businesses without paying agent commissions.

For years, the regulator had been monitoring widespread irregularities involving individual agents, including excessive commissions, mis-selling of policies, misleading customers, and inflated or paper-based premium reporting.

IDRA also has evidence that some insurers concealed commission-related transactions through multiple software systems and undisclosed bank accounts.

Expected benefits and possible risks

According to IDRA, removing agent commissions will lower management costs for insurance companies and may improve profitability. Without commission-driven incentives, unnecessary policy sales are expected to decline, while premium pricing may become more realistic and affordable for customers. The practice of inflating premium income is also expected to decrease, encouraging healthier competition across the sector.

However, the policy also presents challenges.

As commissions were the primary income source for agents, many may exit the profession. The absence of agents could affect new business acquisition, while customer services such as premium collection, documentation, and claims assistance may also face disruption.

A senior executive of a non-life insurance company, speaking on condition of anonymity, told TBS, "Companies committed to ethical business will comply with the directive. But if some violate it, the entire sector will suffer."

He added that enforcement would be easier in Dhaka but significantly more difficult in smaller towns and districts.

A senior official at the Bangladesh Insurance Academy said that although the official agent commission rate was previously capped at 15%, in practice, some companies paid commissions of up to 50% through unofficial channels. "If all companies follow the new rule, their earnings will improve," he said.

He added that companies are likely to rely on Business Procurement Officers or Business Development Officers — salaried employees — to generate business instead of commission-based agents. However, he cautioned that excessively high salary structures could raise operating costs and undermine the benefits of the policy.

Brokerage gap remains a concern

Recently, former IDRA member Sultan-ul-Abedin Mollah said the zero-commission policy is not new. While it was introduced earlier under existing laws, weak enforcement led to its withdrawal. This time, IDRA is attempting a more structured rollout.

"Introducing the policy is challenging, but sustaining it will be even harder," he said, stressing the need for stronger institutional capacity, manpower, and monitoring mechanisms.

He also pointed out that countries such as India and Sri Lanka operate mainly through licensed brokerage houses rather than individual agents. In Bangladesh, however, insurance brokerage licenses have yet to be issued.

"Removing agent commissions without first introducing a brokerage system could create practical difficulties due to the lack of an alternative distribution channel," he warned.

Gold prices in Bangladesh are set to rise again, as the Bangladesh Jewellers Association (Bajus) has announced a new rate of Tk 227,856 per bhori, effective from tomorrow (January 11).

The latest revision marks a 0.46 percent increase, or Tk 1,050 per bhori, Bajus said in a statement today.

The association attributed the hike to rising prices of pure gold in the domestic market.

Businesspeople said the country’s retail gold market has remained volatile in recent months, influenced by fluctuations in global gold prices, steadily increasing costs of pure gold, and ongoing economic uncertainty.

Data from December show that retail gold prices were revised 12 times during the month, highlighting the extent of market instability.

Gold prices in Bangladesh have risen sharply over the years.

The metal first crossed Tk 50,000 per bhori in January 2018. Five years later, in July 2023, it surpassed Tk 100,000. Prices climbed to Tk 150,000 per bhori in February 2025 and later surged past the Tk 200,000 mark within the same year.

After the interim government kept bank lending rates high for about one and a half years to reduce inflation, Finance Adviser Salehuddin Ahmed acknowledged that tight monetary policy alone cannot cool soaring prices.

At a programme in Dhaka yesterday, he said inflation control also requires effective supply-side management, stronger market supervision and cooperation from both businesses and consumers.

Even so, the adviser leaned towards maintaining the current policy stance, saying that an abrupt cut in interest rates could hurt the wider economy.

Local business leaders have long pressed for lower lending rates, but Salehuddin said that the issue could not be settled through a single decision.

“Interest rates are often discussed as if simple solutions exist, but lowering rates in one area can create pressure elsewhere in the economy,” he told the publication ceremony of the Banking Almanac at the CIRDAP auditorium in the capital.

Referring to the recent fall in treasury bill yields, he said the impact would gradually feed through to the market. However, higher returns on treasury bills or savings instruments could pull deposits away from banks, posing risks to the financial system.

The former Bangladesh Bank governor said the core role of the banking sector is to bridge savings and lending. “Banks and non-bank financial institutions play this intermediary role, and any weakness in this structure negatively affects the entire economic system.”

On the Banking Almanac, Salehuddin said the publication does not offer direct investment guidance, but it is an important data source for analysing the banking sector. It contains key information including paid-up capital, authorised capital, capital ratios, provisioning, retained earnings and credit-deposit ratios.

Discussing the health of the banking sector, he said conditions were critical when he took office in August 2024. Recent data analysis, however, shows early signs of improvement in provisioning and lending at some banks -- trends also reflected in the banking Almanac.

Calling on the media, Salehuddin urged journalists not to portray Bangladesh only in negative terms, but to highlight positive developments alongside constructive criticism. He said the country has made notable progress despite many constraints.

Abdul Hai Sarker, chairman of the Bangladesh Association of Banks (BAB), said the exact reasons behind high interest rates remain unclear.

Sarker, the chairman of Dhaka Bank, said banks are receiving funds from both the Bangladesh Bank and the government, yet lending rates remain high.

Despite adequate liquidity, banks are unable to invest because of an unfavourable business climate, he said, adding that weak law and order and low business confidence are discouraging fresh investment.

Sarker said politically driven bank approvals have eroded confidence and triggered capital outflows from the banking system.

High interest rates are also hurting exports by raising production and financing costs, weakening competitiveness in global markets, according to the BAB chairman.

Hossain Zillur Rahman, acting chairman of the board of editors of the Banking Almanac and a former adviser to the caretaker government, said business and entrepreneurial confidence remains a key challenge. He said this should be understood broadly to include farmers and small producers.

Economic democracy, especially access to credit and policy support for small and medium enterprises and grassroots actors, is another critical benchmark, he added.

“While inflation and daily economic comfort have shown mixed trends, persistent gaps remain due to inefficiencies in policy execution and supply chains.”

The economist said strong economic governance depends on quality data, professionalism, better norms, continuous monitoring and effective consultation with stakeholders.

Nazma Mobarek, secretary of the Financial Institutions Division at the Ministry of Finance, said that Bangladesh depends more on the money market than the capital market, leaving banks under growing pressure.

She said the Banking Almanac should include a chapter offering recommendations and possible exits from the crisis, including the problem of rising bad loans.

Md Khairuzzaman Mozumder, secretary of the Finance Division, said the financial sector has been passing through a difficult period over the past one and a half years.

He said some challenges, including letter of credit payment problems, have eased. The true scale of bad loans has now become visible following loan classification under international standards, he added.

Bangladesh Bank Deputy Governor Nurun Nahar also spoke at the event as a special guest. Mohammed Nurul Amin, a member of the editorial board of the book, made remarks on the publication.

The ceremony marking the seventh edition of the Banking Almanac was organised by ShikkhaBichitra with support from the Bangladesh Bank.

Companies turn to the stock market to raise long-term capital and ease balance-sheet pressure, particularly when bank borrowing becomes costly. Yet even as lending rates in Bangladesh climbed to 14–15% from single digits over the past two years, the equity market has remained effectively closed to new issuers.

In a striking anomaly, not a single initial public offering (IPO) has been brought to market by any of the country's 66 licensed merchant banks in nearly two years since March 2024. Over the same period, India hosted more than 370 IPOs in just one year.

The freeze goes beyond a cyclical market downturn. Since the 2024 political transition and the appointment of a new securities commission, capital-raising through public offerings has stalled entirely, leaving the primary market dormant for more than one and a half years and steadily eroding confidence among issuers and investors.

Widespread regulatory non-compliance

Regulatory data suggest that the paralysis is also self-inflicted. According to the Bangladesh Securities and Exchange Commission (BSEC), 42 out of 66 merchant banks have failed to submit even a single effective IPO proposal within the legally mandated timeframe, in clear violation of the Public Issue Rules in force since 2010. The remaining institutions did submit proposals, but those applications were rejected.

The rules are explicit: every merchant bank must place at least one documented public issue proposal before the regulator within any two consecutive calendar years. The scale of non-compliance points to a deeper structural failure, raising questions about why so many licences were issued without ensuring market contribution.

Market participants acknowledge that political uncertainty and increasingly stringent listing criteria have discouraged companies from going public. However, economists and regulators argue that many merchant banks have long retreated from their core mandate, opting instead for proprietary investments, private placements and short-term financing — activities that generate quick returns but add little to market depth.

The result is an overcrowded but largely inactive intermediary landscape, sharply at odds with regional peers where merchant banking licences are closely tied to deal origination and capital mobilisation.

Analysts warn that without decisive regulatory action — through consolidation, licence cancellation or tougher enforcement — Bangladesh risks entrenching a prolonged IPO drought that undermines capital formation and long-term growth.

Regulator response

BSEC spokesperson Abul Kalam told The Business Standard that ongoing reforms to the Public Issue Rules do not prevent merchant banks from submitting new proposals.

"The Commission is regularly monitoring the activities of merchant banks. Legal action will be taken against those who fail to comply with the rules," he said.

He added that the "Merchant Banker and Portfolio Manager Rules" are currently being updated and are expected to address many of the systemic weaknesses once implemented.

Professor Abu Ahmed, chairman of the Investment Corporation of Bangladesh (ICB) and a noted economist, said that while the current economic downturn makes entrepreneurs wary of achieving fair pricing, merchant banks must take responsibility for identifying and encouraging quality companies instead of remaining inactive.

What merchant banks are meant to do

The main activities of merchant banks include issue management, underwriting, portfolio management services, corporate advisory services, and fund-raising and loan syndication.

However, with the prolonged IPO freeze and capital market downturn, corporate advisory services have been severely affected. Consequently, the business of most institutions in this sector has practically collapsed.

42 firms fail regulatory compliance, why?

The list of institutions that have failed to submit a single effective IPO proposal includes several prominent names, such as AB Investment, BRAC EPL Investment, EBL Investments, MTB Capital, NBL Capital and Equity Management, Shanta Equity, UniCap Investments, and many others across bank-sponsored and private entities.

Merchant bankers argue that the environment, rather than their lack of effort, is to blame.

They contend that the massive political shift following the fall of the Sheikh Hasina government has left entrepreneurs in a state of paralysis. Since the new Commission took charge, no major public offerings have been approved.

Industry insiders estimate that around Tk1,000 crore worth of capital-raising applications were either cancelled or withdrawn amid ongoing amendments to the Public Issue Rules. According to merchant banks, rejected or withdrawn applications damage the reputation of both issuers and issue managers, discouraging future attempts.

Faced with regulatory uncertainty and evolving criteria, many banks have opted not to submit new proposals at all.

Impacts on merchant banks

A merchant bank official, speaking anonymously, said, "Except for the top 10 firms, most merchant banks are in a poor state. Many have resorted to layoffs, and in several cases, paying regular salaries has become difficult. In some places, one month's salary is paid only every three months."

He added, "At one firm, only an officer and a peon remain, and the officer hasn't received a salary for several months. According to him, the political transition has brought many merchant banks' operations to a complete halt, leaving them unable to manage an IPO."

Meghna Capital Management Limited is an affiliate of Meghna Group of Industries (MGI). The company was licensed as a full-fledged merchant banker by the BSEC on 22 May 2018. However, it currently has no active operations in IPO management.

Structural weakness and the "easy profit" trap

Experts, however, suggest that arguing on political instability is only a partial picture. Many merchant banks have drifted away from their core responsibility — identifying and grooming quality companies for the market. Instead of the rigorous work of IPO management, documentation, and corporate restructuring, many firms have pivoted toward "easy profit" activities.

These include managing their own investment portfolios, trading placement shares, and engaging in short-term high-interest financing. A significant number of these institutions exist merely to "hold the license," contributing nothing to the primary market's growth.

Furthermore, there is a chronic shortage of skilled human resources in corporate finance, valuation, and legal compliance within these banks, making it difficult for them to provide high-quality advisory services to potential issuers.

Regional contrast

Bangladesh's experience contrasts sharply with that of neighbouring countries. In India, the Securities and Exchange Board of India (SEBI) maintains strict oversight of merchant bankers. Firms that fail to originate deals within a specified timeframe face licence suspension or cancellation.

In 2025, India had around 102 registered merchant banks, of which only 25–30 were actively involved in IPO origination. Even so, they facilitated roughly 373 IPOs and SME listings in a single year.

Similar accountability frameworks exist in Pakistan, Malaysia and Thailand, where investment banking licences are directly tied to capital market performance.

'Licenses should be cancelled'

ICB Chairman Abu Ahmed attributed this crisis to flawed policies and political favouritism in the past.

"In the past, far more merchant banking licenses were issued than necessary, and in many cases, political affiliation was prioritised over professional competence. This has harmed the sector. The time has come to weed out the inactive institutions. Those who haven't brought a single IPO to the market in years should have their licenses cancelled immediately," he stated.

A CEO of a merchant bank echoed this sentiment, saying, "If merchant banks limit themselves to their own portfolios and placements, the equity crisis will persist. We have too many 'paper' merchant banks. We should consider merging weak and inactive firms to increase competitiveness."

Private sector forced to go for high-cost bank loans

With fundraising from the stock market coming to a halt, private sector entrepreneurs are unable to implement their business plans, and in many cases, are forced to postpone them. Under these pressures, many have become reliant on bank loans to fund company expansion and sustain ongoing operations.

What is the way out?

HA Mamun, vice president of UCB Investment, proposed a three-step solution to revive the primary market: Ensure only active and capable players remain in the market; Increase the pace and predictability of the listing approval process to regain issuer confidence; Treat the issuance of corporate bonds and preference shares as equivalent to listing mandates to keep merchant banks active.

Rubayet-E-Ferdous, CEO of Shanta Equity, remains cautiously optimistic. While acknowledging that the absence of an IPO pipeline has forced banks to look for alternative revenue streams like corporate advisory and debt instruments, he believes that once the new rules are enacted and market conditions stabilise, IPO activity will see a revival.

Foreign investors pared their exposure to Bangladesh's capital market in December, pulling out a net Tk119–120 crore, with the bulk of the sell-off concentrated in a handful of large-cap and fundamentally strong stocks such as Summit Alliance Port, Grameenphone, City Bank and Square Pharmaceuticals.

Data from the Dhaka Stock Exchange (DSE) shows that while foreign investors sold shares worth around Tk120 crore during the month, their purchases amounted to only about Tk60 lakh, resulting in a sharp net decline in foreign holdings.

Among the most notable reductions was that of Summit Alliance Port, where foreign shareholding plummeted from 3.69% in November to just 0.01% in December, resulting in a withdrawal of nearly Tk38 crore.

City Bank also saw a significant drop, with foreign ownership falling by 0.64 percentage points to 5.40%, equivalent to a reduction of more than Tk25 crore.

Grameenphone followed a similar trend, as foreign holdings declined from 0.87% to 0.80%, cutting exposure by roughly Tk24 crore.

Square Pharmaceuticals, one of the most widely held stocks among overseas investors, witnessed a decrease of Tk14 crore as foreign shareholding edged down to 14.52%.

Smaller reductions were recorded in BRAC Bank, Renata, Olympic Industries and Jamuna Oil, while marginal increases were observed in Prime Bank, LankaBangla Finance, National Bank and a few other firms.

Overall, total foreign investment in the Dhaka bourse now stands at around Tk13,000 crore. Of the roughly 360 listed companies, only about 132 currently have any foreign shareholding, underscoring the narrow base of overseas participation in the market.
Infographic: TBS
Infographic: TBS

BRAC Bank continues to top the list of companies with the highest foreign shareholding at 36.06%, followed by Olympic Industries at 32.83%, Beximco Pharmaceuticals at 27.35% and Navana Pharmaceuticals at 19.64%.

Market participants say the recent decline reflects a mix of stock-specific exits and broader portfolio rebalancing rather than a loss of confidence in Bangladesh's equity market.

According to brokerage officials, a large portion of the recorded foreign investment actually comes from expatriate Bangladeshis. They note that genuine foreign institutional investors are actively present in no more than 25 listed companies, primarily large-cap firms with relatively strong fundamentals and liquidity.

Norway's sovereign wealth fund, a limited number of UAE and EU-based institutions are among the key foreign players in the market, according to market insiders.

A managing director of a leading brokerage firm said foreign investors remain cautious due to the limited scope for diversification, as Bangladesh has a relatively small pool of investable large-cap stocks that meet the risk, governance and liquidity standards of global institutional funds.

Ahsanur Rahman, chief executive officer of BRAC EPL Stock Brokerage, pointed out that December traditionally sees portfolio adjustments, as foreign institutions prepare year-end financial statements and rebalance their holdings in line with global asset allocation strategies. Such rebalancing often leads to temporary outflows, particularly from frontier and emerging markets, as funds lock in profits or adjust exposures to manage risk.

He further said, "Some foreign investors often visit our office, and they express their interest in investing in the country's capital market. We hope that the ongoing country's tussle situation will be improved, and after that, the foreign investment may increase."

Analysts also note that many global funds track FTSE equity country benchmarks, and Bangladesh's continued partial exclusion from these indices remains a structural challenge. The country was removed from FTSE indices following the imposition of floor prices on stock movements, which constrained price discovery and liquidity.

Although the Bangladesh Securities and Exchange Commission has gradually lifted most of these restrictions since January last year, floor prices remain in place for shares of two companies, keeping them excluded from the FTSE universe.

There has been no improvement in Bangladesh's food supply system in the first half of FY2025–26, the Centre for Policy Dialogue (CPD) said today (10 January), warning that structural weaknesses continue to keep prices elevated despite easing global trends.

The assessment was presented by Executive Director Fahmida Khatun during CPD's independent review of the state of the economy at a press conference in Dhaka.

CPD said weaknesses in storage, distribution and market competition remain unresolved, contributing to persistently high food prices.

Inflation stood at 8.49% in December. While food inflation has declined slightly, non-food inflation remains high, putting pressure on households.

The organisation questioned why domestic food prices have not fallen in line with global trends.

It noted that global prices of key commodities such as sugar and edible oil fell by around 40% in November, but Bangladesh has not seen a similar reduction.

CPD pointed out discrepancies in the domestic market, saying the country produces more rice than its estimated demand.

Annual demand stands at 41 million tonnes while production is 44 million tonnes. However, prices remain high, partly due to weaknesses in supply management.

It said profit margins are highest in perishable items such as green chillies, brinjal, beef, and fish, where middlemen have greater control over the supply chain.

In contrast, price variation in rice is lower.

The organisation also noted a decline in agricultural labourers' wages, even as food prices continue to rise.

On policy recommendations, CPD stressed that inflation cannot be reduced merely through higher market interest rates.

It said increasing supply, preventing hoarding and enhancing market competition are necessary to stabilise prices.

The organisation called for an integrated food policy framework to ensure effective imports, maintain adequate food stock, and streamline supply and transport systems.

It also stressed the need to ensure the timely supply of quality seeds and fertilisers to boost Aush and Aman production.

The government is weighing a range of policy options – including tighter import controls, curbs on duty-free yarn imports and incentives to encourage the use of locally produced yarn – as it comes under growing pressure to protect domestic spinning mills from a surge in imported yarn, particularly subsidised supplies from India.

Officials from the Bangladesh Trade and Tariff Commission (BTTC) met representatives of the Bangladesh Textile Mills Association (BTMA) and the country's two garment exporter bodies in Dhaka on Wednesday. While participants broadly agreed on the need to safeguard the textile value chain, no decision was reached amid sharp differences between mill owners and garment exporters.

"We are studying the issue and working on it," Commerce Secretary Mahbubur Rahman told The Business Standard when asked whether the government was considering import restrictions to protect local textile industries.

Bangladesh's ready-made garment (RMG) sector, the world's second-largest exporter, has developed significant backward linkages over the years. Local textile mills now meet about 60% of the demand for woven fabrics and almost the entire yarn requirement of the knitwear sector. Despite this, spinning mills have been under severe financial stress for more than a year, often selling yarn below production cost to remain competitive.

Mill owners say unsold yarn worth more than $1 billion is currently piled up across factories. The BTMA recently urged urgent government intervention, warning that an industry which has attracted investments of around $23 billion is at risk.

According to BTMA data, Bangladesh imported yarn worth about $2.20 billion in 2024, of which roughly 76%, around $1.64 billion, came from India. Spinners argue that Indian exporters benefit from subsidies provided by both the central and state governments, estimated at about $0.30 per kilogram of yarn, enabling them to undercut domestic producers.

A senior BTTC official who attended Wednesday's meeting, speaking on condition of anonymity, said all parties recognised the need to protect the textile sector, but competing interests prevented a consensus.

"Before taking any decision on import restrictions or other measures, we need a deeper assessment of WTO rules, revenue implications and the legal aspects," the official said.

Industry insiders said the meeting discussed the possibility of suspending yarn imports or imposing additional duties on 10 to 30 count yarns for one year. These categories account for nearly 95% of Bangladesh's total yarn imports.

BTMA Director Masud Rana proposed a 7% incentive for exporters using locally produced yarn, a suggestion supported by representatives from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). However, two other BTMA representatives called for a complete withdrawal of duty-free yarn imports under the bonded warehouse facility.

A BKMEA leader present at the meeting said data presented there showed yarn imports had declined over the past six months compared to the same period a year earlier.

Garment exporters push back

Garment exporters, however, strongly opposed any move to restrict imports.

Fazlee Shamim Ehsan, executive president of BKMEA, said exporters were already operating under intense cost pressure. "About 80% of exporters are selling below production cost," he said. "If yarn imports are restricted, costs will rise further and buyers may shift orders to countries like India, where prices are lower."

While acknowledging the need to support the textile sector, Ehsan argued that import restrictions were not the right solution. "The government could instead provide special incentives or other forms of support to spinners," he said.

BGMEA leaders echoed similar concerns, questioning whether international buyers would be willing to absorb higher costs if local yarn prices exceeded imported alternatives.

Textile mill owners, however, warned that continued inflows of low-priced yarn could permanently erode domestic capacity. Former BTMA vice-president Salehuddin Zaman Khan described Indian yarn shipments as a form of dumping. "If local mills shut down, garment manufacturers will eventually be forced to import yarn at higher prices," he said.

BTMA Director Khorshed Alam said even vertically integrated manufacturers were unable to rely on their own production. "A representative from RN Spinning told the Tariff Commission that he was forced to import yarn because he could not match imported prices even for use in his own garments factory," Alam said. "The benefit of cheaper yarn is ultimately captured by buyers, not local producers."

BTMA President Showkat Aziz Russell has said nearly 100 textile mills have already shut down fully or partially, adding that he himself was forced to close one of his factories.

Bond misuse allegations resurface

Garment exporters also questioned whether import restrictions would achieve their intended objective. Ehsan warned that buyers might instead nominate Bangladeshi exporters to import grey fabric from India, offsetting any gains from restricting yarn imports.

Meanwhile, mill owners renewed allegations of widespread misuse of the bonded warehouse facility, which allows exporters to import raw materials duty-free on the condition that they are not sold domestically.

Khorshed Alam estimated that textile goods worth around $5 billion enter the local market annually through bond misuse and smuggling. "The local apparel market is worth about $12 billion, of which domestic producers supply only $7 billion," he said. "The remaining $5 billion is largely met through duty-free imports diverted into the local market."

He added that falling yarn prices have inflicted heavy losses on mills and reduced government revenue. "The price of 53-count yarn has fallen by Tk60 per kilogram since February, causing a net loss of Tk41 per kilogram," he said. "In November alone, one mill recorded losses of Tk1.8 crore."

VAT receipts have also declined, he said. "The mill paid Tk15 lakh in VAT in October, which fell to Tk8 lakh in November as sales dropped."

Lowering interest rates is not a matter of a single decision, as it risks disrupting the overall economic balance, Finance Adviser Salehuddin Ahmed said today.

Cutting interest rates without proper coordination among treasury bills, the banking sector, and market mechanisms could have adverse effects on the broader economy, he said at an event in Dhaka.

The adviser noted that interest rates are often discussed as if there were simple solutions, but in reality, reducing rates on one front can create pressure elsewhere in the economy.

Referring to the recent decline in treasury bill yields, Ahmed said its impact would gradually be reflected in the market.

However, if interest rates on treasury bills or savings instruments are increased, deposits in banks would fall, posing risks to the banking system.

The adviser said the core function of the banking sector is to build a bridge between savings and lending.

“Banks and non-bank financial institutions play this intermediary role, and any weakness in this structure negatively affects the entire economic system,” he said.

He was speaking at the publication ceremony of the Banking Almanac at the Centre on Integrated Rural Development for Asia and the Pacific in Dhaka.

Although the Banking Almanac does not provide direct investment guidance, it is an important data source for analysing the banking sector, Ahmed said.

The publication includes key information such as paid-up capital, authorised capital, capital ratios, provisioning, retained earnings, and credit-deposit ratios.

Discussing the current state of the banking sector, the adviser said the situation was critical when he assumed office. However, recent data analysis indicates signs of positive change in provisioning and lending activities at some banks, which are reflected in the Banking Almanac.

On inflation, he said it cannot be controlled through monetary policy alone, adding that sustainable solutions require supply-side management, market supervision, and cooperation from both businesses and consumers.

The adviser urged journalists not to portray Bangladesh solely in a negative light but to highlight positive developments alongside constructive criticism, as the country has made notable progress despite many constraints.

Bangladesh's economy is expected to grow 4.6% in the current fiscal year (FY26), up from an estimated 4.1% a year earlier, before rising further to 5.4% in FY27, according to a United Nations report.

But the projected growth still remains short of pre-pandemic levels.

Released on Thursday (8 January), the UN Department of Economic and Social Affairs report titled "World Economic Situation and Prospects 2026" also anticipated some relief on prices, with inflation expected to ease to 7.1% in FY26 and further to 6% next fiscal year.

Inflation, however, has remained elevated so far in the current fiscal year, staying above 8% over the past six months.

The forecast further predicts a rise in Bangladesh's GDP in FY26, aligning with positive growth projections from the Asian Development Bank, World Bank, and International Monetary Fund.

The Asian Development Bank, in its September 2025 outlook, projected Bangladesh's GDP growth at 5% in FY26. In October last year, the World Bank forecast growth of 4.8% in FY26, rising to 6.3% in FY27.

Around the same time, the International Monetary Fund projected growth of 4.9% for FY26 and 5.7% for the following fiscal year.

However, the interim government has set a higher GDP growth target of 5.5% for FY26, exceeding the projections made by international agencies.

South Asia to remain resilient

According to the UN report, economic growth in South Asia is expected to remain relatively strong, though slightly moderating in the near term. Regional growth is projected to ease from an estimated 5.9% in 2025 to 5.6% in 2026, before recovering to 5.9% in 2027. Trade policy uncertainty and high public debt were cited as continuing constraints for several economies.

India's economy is estimated to have grown by 7.4% in 2025 and is forecast to expand by 6.6% in 2026 and 6.7% in 2027, supported by resilient private consumption and strong public investment, which are expected to offset the impact of higher United States tariffs on exports.

Bhutan is projected to maintain growth above 6% in the near term, driven by strong government spending and the ongoing recovery of agriculture and tourism. Growth in the Maldives and Sri Lanka is forecast to moderate to around 4.3% and 4.0% respectively in 2026.

Pakistan's economy is expected to grow by 3.5% in FY26, up from an estimated 3.1% in FY25, while Nepal's growth is forecast to ease slightly to 4.3% in FY26 from an estimated 4.4% the previous year.

Global growth to remain subdued

At the global level, the UN projects economic growth to slow to 2.7% in 2026 before edging up to 2.9% in 2027, still below the pre-pandemic average of 3.2% recorded between 2010 and 2019.

The report noted that a sharp increase in United States tariffs had "created new trade frictions", although the lack of broader escalation had helped limit immediate disruption to international trade.

"A combination of economic, geopolitical and technological tensions is reshaping the global landscape, generating new economic uncertainty and social vulnerabilities," UN Secretary-General António Guterres said.

He added, "Many developing economies continue to struggle and, as a result, progress towards the Sustainable Development Goals remains distant for much of the world."

Leaders of the Bangladesh LPG Autogas Station and Conversion Workshop Owners Association have called for urgent and effective government intervention to resolve the ongoing LPG crisis, warning that the situation has severely disrupted the country's transport sector.

Mohammad Serajul Mawla, association president, at a press conference held today (10 January) at the Dhaka Reporters Unity, said autogas or liquefied petroleum gas (LPG) is an environment-friendly, easily available and cost-effective fuel that has long been used as an efficient alternative to CNG, petrol, octane and diesel.

He added that with government encouragement, around 1,000 autogas stations have been established across all 64 districts of the country, while nearly 150,000 vehicles have been converted to run on LPG.

However, due to the severe shortage of LPG, almost all autogas stations across the country have effectively shut down, Serajul said.

As a result, station owners, as well as owners and drivers of LPG-run vehicles, are facing extreme hardship, he added.

"Vehicles are unable to get gas even after waiting for hours, disrupting traffic movement and severely affecting passenger services. Passengers are being harassed on a daily basis."

He further said that Bangladesh consumes an average of around 140,000 metric tonnes of LPG per month, of which only about 15,000 metric tonnes, roughly 10% is used in the transport sector.

"Yet the failure to ensure supply of this relatively small amount has pushed the entire LPG autogas industry to the brink of collapse," he said.

Calling on the government to take immediate action, Serajul said ensuring energy security, stability in the transport system, consumer interests and environmental protection requires visible and effective steps without delay.

"If the LPG crisis is not resolved quickly, its impact will deepen further, affecting the overall economy and public life," he added.

At the press conference, the association placed three key demands: urging LPG supplier companies, operators and LPG Operators Association of Bangladesh (LOAB) to ensure adequate supply of LPG autogas in line with demand; calling on the Bangladesh Energy Regulatory Commission (BERC) and other relevant authorities to quickly resolve complications related to LPG imports and ensure sufficient supply to the autogas sector through operators; and taking all necessary measures to prevent future supply disruptions, including importing LPG from alternative sources if needed under government initiative.

US job growth slowed more than expected in December amid business caution about hiring because of import tariffs and rising artificial intelligence investment, but the unemployment rate dipped to 4.4 per cent, supporting expectations the Federal Reserve would leave interest rates unchanged this month.

Nonfarm payrolls increased by 50,000 jobs last month after rising by a downwardly revised 56,000 in November, the Labor Department's Bureau of Labor Statistics said on Friday. Economists polled by Reuters had forecast 60,000 jobs added after a previously reported 64,000 increase in November.

The closely watched employment report suggested the labor market remained stuck in what economists and policymakers have called a "no hire, no fire" mode. It also confirmed the economy was in a jobless expansion. Economic growth and worker productivity surged in the third quarter, in part attributed to the AI spending boom.

The labor market lost considerable momentum last year, largely blamed on President Donald Trump's aggressive trade and immigration policies, which economists and policymakers said reduced both demand for and supply of workers.

The sharp moderation in job growth, however, started in 2024. The BLS has estimated about 911,000 fewer jobs were created in the 12 months through March 2025 than previously reported. The agency will publish its payrolls benchmark revision next month with the January employment report.

The overcounting has been blamed on the birth-death model, which is used by the BLS to estimate how many jobs were gained or lost because of companies opening or closing in a given month. Last month, the BLS said it would, starting in January, change the birth-death model by incorporating current sample information each month.

Together with the December employment report, the BLS published annual revisions to the household survey data for the past five years. The unemployment rate is calculated from the household survey.

The annual population control adjustments, normally incorporated with the January employment report, will be delayed. November's unemployment rate was revised down to 4.5 per cent from the previously reported 4.6 per cent.

The median forecast in a Reuters poll of economists was for the jobless rate to have eased to 4.5 per cent in December. Some economists say low supply has prevented a sharp rise in the unemployment rate. They estimated that between 50,000 and 120,000 jobs need to be created each month to keep up with growth in the working-age population.

The US central bank cut its benchmark interest rate by a quarter of a percentage point to the 3.50 per cent-3.75 per cent range in December, but officials indicated they were likely to pause further reductions in borrowing costs for now to get a better sense of the economy's direction.

With factors like tariffs and AI preventing companies from hiring more workers, economists increasingly view the labor market's challenges as more structural than cyclical, which would make rate cuts less effective to stimulate job growth.

Bangladesh's ready-made garment exports to the United States fell by nearly 11% year-on-year in October as higher tariffs imposed by the Trump administration reduced consumer demand and disrupted buying patterns in the world's largest apparel market.

The impact of the Trump administration's reciprocal tariff measures is increasingly being felt across almost all apparel-exporting countries, primarily due to a contraction in US consumption driven by higher import duties.

According to the latest data released by the Office of Textiles and Apparel (Otexa), the downturn was not limited to Bangladesh, as apparel shipments from nearly all major exporting countries to the US fell.

Otexa data shows that overall US apparel imports dropped by around 19% in October, reflecting weakening demand amid rising prices. Exporters attribute the slowdown largely to higher tariffs, which have pushed up retail prices and discouraged consumer spending.

Under the new tariff regime introduced from August, Bangladeshi apparel products are now subject to an additional 20% duty, taking the total tariff burden to 36%. China and India face even higher tariff rates, resulting in a sharper decline in exports from those countries.

In October alone, US apparel imports from China plunged by 53%, while imports from India fell by nearly 29%, according to Otexa.

Demand dampens in US due to inflation

Shehab Udduza Chowdhury, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told TBS that higher tariffs have fuelled inflation in the US apparel market. "Because of higher prices, consumers who used to buy five garments may now be buying only three," he said.

Shehab added that frequent policy changes under the Trump administration have created uncertainty among US buyers and global brands, prompting them to reduce inventory levels and avoid holding long-term stock. "Many buyers also rushed to place orders before the new tariffs came into effect on 7 August, leading to a subsequent drop in shipments."

He continued, "This could ultimately create a crisis in the US apparel supply chain, which may trigger another round of price increases."

Otexa data indicates that US apparel imports recorded growth between January and July, but began to decline after the new tariffs were enforced in August. China, the largest exporter to the US, has been the worst affected by the shift.

Bangladesh is relatively less affected

Bangladeshi exporters note that, compared with China and India, the export performance of Bangladesh, Pakistan and Cambodia has been relatively less affected.

Overall, US apparel imports fell by about 1% during the first 10 months of the year, from January to October, amounting to $66.63 billion, down from more than $67 billion in the same period last year.

Despite the recent slowdown, Bangladesh's garment exports to the US still grew by more than 15% over the ten months, although this was lower than the nearly 22% growth recorded between January and July. By contrast, US apparel imports from China declined by 32% during the same period.

The country's revenue collection has grown by 16.7% in the first six months of the current fiscal year, Centre for Police Dialogue (CPD) said today (10 January), but warned that achieving the annual target will be challenging.

The observation came during CPD's independent review of the state of the Bangladesh economy for the first half of FY2025-26. CPD Executive Director Fahmida Khatun presented the assessment at a press conference at the organisation's office in Dhaka.

The review covered seven areas, including public expenditure, the inflationary trend, food security and private investment.

CPD noted that the new government will need to give priority to each of these sectors following the upcoming election next month.

On the public financial system, CPD said both revenue mobilisation and expenditure management are critical areas that will need attention.

It also observed that the interim government initiated some reforms, but these will need to be completed by the incoming administration.

According to CPD, tax collection has grown by 15.2%, mainly through income tax and VAT components. However, it said questions remain over whether the revenue target can be met even after revision.

To reach the full-year goal, an additional 3% growth would be required, which CPD noted as challenging given current trends.

Gold prices surged sharply in Bangladesh as jewellers announced a fresh hike, pushing the cost of the precious metal to a new high amid continued volatility in the local market.

In a statement issued on Saturday night, Bangladesh Jewellers Association (BAJUS) said the price of 22-carat gold has been increased to Tk227,856 per bhori (11.664 grams), up from the previous rate.

The association cited a rise in the price of tejabi (pure) gold in the local market as the reason behind the latest adjustment, saying the new rates were fixed after reviewing the overall market situation.

According to the revised price list, 21-carat gold will be sold at Tk217,534 per bhori, while the price of 18-carat gold has been set at Tk186,449 per bhori. Gold made under the traditional method will cost Tk155,423 per bhori.

In addition to the selling price, buyers will have to pay a government-mandated 5 percent VAT and a minimum 6 percent making charge fixed by BAJUS. However, the making charge may vary depending on the design and quality of the jewellery.

BAJUS last adjusted gold prices on January 8, when it reduced the price of 22-carat gold by Tk1,050 per bhori to Tk226,806.

With the latest revision, gold prices have been adjusted five times so far this year—three hikes and two cuts. In 2025, BAJUS revised gold prices a total of 93 times, increasing rates on 64 occasions and cutting them 29 times.

Gold prices rose on Friday and were on track for a weekly gain, as investors weighed weaker-than-expected US payrolls data along with broader policy and geopolitical uncertainty.

Spot gold was up 0.5 percent at $4,496.09 per ounce as of 01:31 p.m. ET (1618 GMT), and was set for about 3.9 percent weekly gain. Bullion hit a record high of $4,549.71 on December 26.

US gold futures for February delivery settled 0.9 percent higher at $4,500.90.

US nonfarm payrolls in December rose by 50,000, missing expectations of a 60,000 gain, while the unemployment rate eased to 4.4 percent, below forecasts of 4.5 percent.

“Payrolls are showing us a poor job creation environment. Potentially more (geopolitical tension), somewhat higher oil prices, which are inflationary, uncertainty and an easing Fed — all a combination for precious metals,” said Bart Melek, global head of commodity strategy at TD Securities.

Market participants continued to factor in at least two Federal Reserve rate cuts this year, a backdrop historically favorable for gold.

Geopolitical tensions remained elevated amid intensifying unrest in Iran, continued fighting in Russia’s war in Ukraine, the US capture of Venezuela’s President Nicolas Maduro, and Washington’s renewed signals over taking control of Greenland.

Metals Focus projected gold prices could hit fresh record highs above $5,000 in 2026, citing de-dollarization trends and geopolitical risks.

Retail demand for gold in India remained subdued due to elevated prices, while gold premiums in China widened.

Meanwhile, uncertainty over tariffs persisted, as the US Supreme Court is not expected to issue a ruling on Friday in a major case testing the legality of President Donald Trump’s sweeping global tariffs, with decisions now expected on January 14.

The SME board of the Dhaka Stock Exchange (DSE) suffered a sharp year-on-year decline in 2025, significantly underperforming the main market index.

Sixteen of the 20 SME stocks suffered erosion in market value during the period, many of which had experienced unusual surges without any fundamental factors or corresponding improvements in financial performance.

As a result, the SME index of the prime bourse lost 22 per cent, or 235 points, during the year to close at 856 points-well below its base level set at the board's launch.

The SME board was launched in September.

2021 with six companies and a base index of 1,000 points. It peaked at 2,244 points in August 2022 amid a wave of speculative trading.

In 2025, SME stocks endured price erosion ranging from 6 per cent to 65 per cent. Consequently, the market capitalisation of the SME board fell by more than Tk 4 billion to Tk 17.56 billion at the end of the year.

By contrast, the main board of the Dhaka bourse recorded a comparatively modest decline of 6.7 per cent in its benchmark index over the same period.

Market analysts said the downturn in the SME board was inevitable, given the artificial nature of earlier price hikes that were not supported by corporate earnings or operational performance.

SME companies saw profits decline year-on-year in FY25 as overall economic activities remained subdued following the political shift, which also weighed on their stock prices, said Akramul Alam, head of research at Royal Capital.

"SME companies lack the capital intensity needed for expansion and scalability, which ultimately constrains their financial performance and growth," Alam told The Financial Express.

Several SME stocks had surged earlier without any positive earnings disclosures, raising concerns about market manipulation. At the time, analysts flagged speculative behaviour and rumour-driven trading as key drivers behind inflated valuations.

The SME index began to decline after the fall of the Sheikh Hasina-led regime in August 2024, amid speculation that the new securities commission formed after the political transition would take tougher measures against price manipulation.

Himadri, a stock that had previously played a dominant role in driving the SME index upward, witnessed sharp corrections over the past year.

The Financial Express had published several reports highlighting abnormal price hikes in small-cap stocks, particularly Himadri.

Himadri-an SME company operating six potato cold storages in northern Bangladesh-saw its share price plunge 55 per cent to Tk 657.9 per share by the end of last year.

What surprised market observers was that the little-known stock had surged to nearly Tk 10,000 per share in November 2023, despite the fact that many well-performing, dividend-paying blue-chip companies traded at far lower prices.

In November 2024, the securities regulator penalised one individual investor and three firms a total of Tk 17 million for manipulating Himadri's stock.

The fines were imposed following hearings based on investigation reports submitted by the DSE, which found the four investors engaged in manipulating Himadri's shares in 2023.

Despite the sharp correction, Himadri's share price remains elevated, with a price-to-earnings ratio of 178 as of Thursday.

"Himadri shares should never have traded above blue-chip stocks on the main board," Alam said.

Another SME stock, Oryza Agro Industries, which manufactures and markets fish and poultry feed, recorded the steepest price fall, plunging 65 per cent to Tk 8.5 as its profit declined 31 per cent to Tk 49.75 million in FY25.

Meanwhile, Yusuf Flour Mills, another little-known SME stock, surged 86 per cent to Tk 2,200 at the end of 2025, despite weak fundamentals. The stock had peaked at Tk 6,352 per share in June 2024.

Analysts said the price surge was artificial, as Yusuf Flour's financial performance did not justify the rally. The company's profit fell 43 per cent year-on-year in FY25, and it paid only a 5 per cent cash dividend.Financial planning tools

"A group of dishonest traders has been targeting the SME board to manipulate stocks," Alam said.

However, the new securities commission has taken several market-supportive measures and initiated tough actions against wrongdoers.

As part of a broader effort to promote sustainable capital market development, the commission has imposed heavy fines on several market manipulators and errant companies for malpractices committed during the tenure of the previous commission.

Economists and policymakers today (8 January) called for a clear and coordinated strategic roadmap to accelerate Bangladesh's transition to a cashless economy, citing low adoption of QR code payments and persistently high reliance on cash transactions.

More than 70% of Bangladesh's economic transactions are still conducted in cash, leaving the country far behind its regional peers despite ongoing efforts by the Bangladesh Bank to promote digital payments, said Ashikur Rahman, principal economist at the Policy Research Institute of Bangladesh (PRI).

Ashikur noted that QR code-based transactions remained almost negligible. By value, they accounted for less than 1% of total transactions in October 2025, when Bangladesh recorded just 1.06 million QR code payments, he said.

In contrast, India processed around 723 million such transactions during the same period, highlighting what he described as a "day and night" difference between the two countries.

The PRI principal economist was speaking at a stakeholder consultation workshop titled "Towards a Cashless Economy: A Strategic Roadmap for Bangladesh," organised by PRI in collaboration with the Gates Foundation.

The event brought together policymakers, regulators, economists, representatives from the financial sector and development partners to discuss pathways, challenges and policy priorities for expanding digital and cashless transactions.

Ashikur pointed out that in China even the most marginalised citizens routinely use QR codes to receive financial assistance.

The keynote paper presented at the workshop acknowledged that Bangladesh had made notable progress in digital payments, led by mobile financial services, QR payments and online banking. However, it said a large share of transactions remained cash-based due to key constraints, including limited interoperability, infrastructure gaps, cybersecurity risks and low digital literacy.

The paper identified financial inclusion, reduced transaction costs and improved economic governance as major benefits of a cashless economy. Drawing on global and regional experiences, it emphasised the importance of strong digital public infrastructure and a coordinated regulatory framework. The proposed roadmap recommended phased reforms, stronger inter-agency coordination, expansion of digital infrastructure, enhanced consumer protection and fintech-driven innovation to ensure an inclusive and secure transition.

Addressing as the chief guest, Bangladesh Bank Executive Director Arief Hossain Khan said the central bank is actively implementing initiatives to strengthen digital payments, financial inclusion and a secure payment ecosystem.

He stressed that effective coordination among regulators, financial institutions and technology providers was crucial to ensure that the move towards a cashless economy benefited all segments of society.

PRI Chairman Zaidi Sattar said transaction systems had come full circle in human civilisation. While cash was once a transformative invention, he said, it had now become cumbersome for modern economic activity, pushing societies once again towards cashless modes of exchange.

The workshop was chaired by Sattar and attended by PRI Research Director Bazlul H Khondker, along with senior officials, academics and development partners.

Bangladesh advances towards strengthening its mutually beneficial trade relationship with the United States, opening the door to greater market access and new opportunities for its vital textile and apparel sector.

A spokesperson for the interim government's Chief Adviser Office Saturday broke the news in Dhaka, following a follow-up trade negotiation with the United States in the US capital.

In response to a request from National Security Adviser Dr Khalilur Rahman, who is currently on a visit to Washington, DC, US Trade Representative Ambassador Jamieson Greer has agreed to raise with President Donald Trump the possibility of reducing Bangladesh's current 20-percent reciprocal tariffs to a rate commensurate with regional competitors'.

"Even more significantly, both sides have developed an innovative and forward-looking solution to support Bangladesh's export priorities," says the spokesman about the fresh tradeoff under a proposed preferential trade scheme.

Under a proposed preferential scheme discussed yesterday (Friday) by Dr Rahman and Ambassador Greer, Bangladesh would receive tariff-free access to the US market for textile and apparel exports equivalent to its imports of US-produced cotton and man-made fiber (MMF) textile inputs, measured on a square-meter basis, he adds.

"This creative, win-win approach strengthens bilateral trade, supports Bangladeshi manufacturers and workers, and deepens supply-chain ties with US producers," it is stated.

It reflects growing momentum and goodwill in US-Bangladesh economic relations and marks a promising new chapter for Bangladesh's global trade prospects, the government notes about the latest developments in the aftermath of the Trump tariff tempest which is roiling global trade order.