Bangladesh Bank's far-reaching reforms under the interim government — from revealing the actual extent of defaulted loans to stabilising the foreign exchange market and tightening monetary discipline — signal a clear turning point for the banking sector and are set to influence its future governance.

As part of this overhaul, the central bank has formulated at least six key legislative drafts aimed at dismantling the culture of impunity that allowed influential families and political figures to hollow out the financial system over the last two decades.

Central to this mission are proposed amendments to the Bank Company Act and the Bangladesh Bank Order, which seek to curb the dominance of business conglomerates and establish the central bank's autonomy.

Grip of death

The proposed draft of the Bank Company Act introduces stringent limits on board representation to prevent a repeat of the systemic collapses seen during the Sheikh Hasina regime.

Under the new rules, the number of directors from a single family and its affiliates on a bank board will be slashed from five to two. Furthermore, a director's continuous term will be halved from twelve years to six.

These measures are a direct response to the "family dominance" of ousted prime minister Sheikh Hasina and her cohorts which crippled the sector, most notably by conglomerates like the S Alam Group.

Such entities allegedly gained control of multiple banks to siphon off thousands of crores of taka, much of which was reportedly laundered abroad.

To further ensure professional management, the central bank also proposes barring political figures from bank boards and restricting any single individual from holding significant stakes in multiple banks.

Reduce state control

In a bid to shield the regulator from political interference, the draft amendment to the Bangladesh Bank Ordinance 2025 proposes significant changes to key appointments.

Under the new mandate, the president will appoint the governor and deputy governors, and the governor's post will be upgraded from the status of a secretary to that of a minister.

The amendment also seeks to reduce state control over the central bank's board. While the current board includes three government representatives, the final draft proposes retaining only one, ensuring that the institution can make financial decisions based on economic necessity rather than political convenience.

Safety and debt recovery

Beyond structural governance, BB has already moved to implement the Bank Resolution Ordinance and the Deposit Protection Act. These laws have already facilitated the merger of five weak banks while raising the insurance coverage ceiling to protect small depositors.

To address the mountain of bad loans or non-performing loans, the central bank has introduced the Distressed Asset Management Ordinance and proposed updates to the Money Loan Court.

These reforms aim to treat general and "wilful" defaulters with equal severity and speed up the settlement of long-pending recovery cases.

Despite the central bank board's approval and pressure from the International Monetary Fund (IMF) to expedite these changes, the government has reportedly been responding slowly to the final review of the Bank Company Act and the Bangladesh Bank Order.

Bangladesh Bank sources indicate that the swift implementation of these laws is essential to restoring public trust and ensuring that the recent stabilisation of the foreign exchange market also translates into long-term financial health.

Bangladesh Bank's sweeping reform measures under the interim government – ranging from exposing the true scale of default loans to stabilising the foreign exchange market and enforcing monetary discipline – have marked a decisive turning point for the country's banking sector and are expected to shape its future governance.

These measures have restored depositor confidence, increased liquidity and contributed to a steady decline in inflation. Although inflation did not come down to the expected level, its further rise has been checked. However, little progress has been made in the repatriation of assets siphoned off from Bangladesh.

Under the reform programme, the Bangladesh Bank identified default loans of Tk6.44 lakh crore as of September, which was 36% of total loans, three times higher than the amount shown during the previous regime.

The huge default loans that were assessed through asset quality review by engaging foreign firms under the reform programme helped the central bank to go for proper treatment for weak banks.

In a landmark move, the Bangladesh Bank merged five Islamic banks – each burdened with default loan ratios exceeding 90% – to form a new entity, Sammilito Islami Bank.

Bangladesh Bank board also decided to liquidate another nine non-bank financial institutions, which are currently not in a position to continue to operate due to high default loans.

The total estimation for merger and liquidation is Tk70,000 crore, of which will be provided from the taxpayers' money to mitigate the hole created by massive corruption during the ousted prime minister Sheikh Hasina's 15-year regime.

Speaking at a recent event, Bangladesh Bank Governor Ahsan H Mansur said, "We have already started addressing the issues of five weak banks and provided Tk35,000 crore. But several others remain at risk. Resolving their problems will require another Tk35,000 crore, bringing the total cost to around Tk70,000 crore."

He said this massive amount cannot be mobilised overnight. "We are considering allocations over multiple fiscal years. It will have to be a phased recovery, not a one-time fix."

The governor said the Bangladesh Bank is taking steps to liquidate nine NBFIs, and four to five more NBFIs could face liquidation if they fail to restructure or raise fresh capital.

"Those which can prove viability will be given a chance to survive. We're not promising miracles. But with time, transparency, and the rule of law, we can rebuild trust in the financial system."

Mansur also acknowledged that the default loan situation is more serious than previously disclosed. The reported NPL figure had been hovering around 9% in the past. It is 36% now. "We are not going to manipulate the data. The public deserves transparency."

The governor said the central bank aims to bring down the NPL rate to 10% by March 2026. "It might take 10 years to reduce it to 4-5%, but that is the sustainable path."

What amendment in major laws

The Bangladesh Bank also formulated at least six laws, including amending the Bank Company Act to bring corporate governance in the board of banks, the Bangladesh Bank Order to ensure central bank autonomy, introduced Bank Resolution Act for effective resolution and Deposit Protection Act raising insurance coverage ceiling for depositors, Distressed Asset Management Ordinance for tackling default loans and Money loan court to speed up case settlement.

Out of six, two major laws, including the Bank Company Act and the Bangladesh Bank Order, are still under government review after the approval from the board of Bangladesh Bank.

Although the International Monetary Fund (IMF) has been pursuing Bangladesh Bank to implement the amendment of both laws, the government has been responding slowly, according to central bank sources.

In the final draft amendment to the Bank Company Act, the Bangladesh Bank focused on limiting the power of influential individuals and families and political figures.

The proposed draft limits the number of directors from a single family and their affiliates on bank boards from five to two, and cuts a director's continuous term from 12 years to six, in a move to curb family influence in bank management.

Such dominance by certain board members has crippled the country's banking sector over the past 15-20 years, particularly during the Sheikh Hasina regime, leading to rampant loan scams, rising non-performing loans, and loss of public funds and trust.

Conglomerates such as S Alam Group gained control of multiple banks and allegedly withdrew thousands of crores of taka, much of which was, ultimately, allegedly laundered out of the country.

The central bank also proposes to bar political figures from boards, ease foreign investors' shareholding limits, restrict one person from holding large stakes in multiple banks, and treat general and wilful defaulters equally.

The draft amendment to the Bangladesh Bank Ordinance 2025 introduces major changes in key appointments, mandate, and financial management to shield the central bank from political influence to ensure autonomy.

Under the draft, the president will appoint the governor and deputy governors. While the amendment initially removed government representatives from the board, the final version retained one, according to the draft approved by the board. At present, the board includes three government representatives.

The governor's post will be upgraded from secretary to ministerial status under the draft amendment.

The Bangladesh Bank already implemented the Bank Resolution Ordinance and Deposit Protection Act through merging five banks under the amended ordinance.

Reformation in forex market

The Bangladesh Bank also reformed forex market management by introducing a greater flexible exchange rate mechanism, which helped to bring stability in the currency market.

Foreign exchange reserves rebounded strongly after the interim government cleared external arrears. The Bangladesh Bank added over $8 billion to reserves within a year, raising the total from $18.8 billion in December 2024 to $26.8 billion as of 4 December 2025, enough to cover more than four months of imports.

A more flexible exchange rate regime, coupled with aggressive policy rate hikes, restored discipline to the currency market. The taka has held steady at Tk122-123 per dollar for six consecutive months. The central bank also stopped money printing and moved swiftly to merge and restructure troubled banks, calming depositors and bringing back liquidity. Deposits increased noticeably after governance reforms at problematic banks.

These measures helped inflation fall from a 12-year high of 11.36% in July 2024 to single digits for the past six months. Food inflation, once at 14%, dropped to 7.36% in November. Although still above the Bangladesh Bank's FY26 target of 6.5%, the government's Bangladesh State of the Economy 2025 attributes the improvement to monetary tightening, supply-side interventions, stable global commodity prices, and a steady exchange rate.

Development of asset recovery

Although the Bangladesh Bank formed a task force for supporting the identification, investigation, and repatriation of assets siphoned off from Bangladesh, little progress has been made in this regard due to the complex process.

Its key functions include removing legal barriers to expedite proceedings, managing recovered assets, coordinating with international partners for information sharing, and strengthening institutional capacity and internal coordination to ensure effective asset recovery.

According to monetary policy statement of Bangladesh Bank for first half of FY26, the BFIU (Bangladesh Financial Intelligence Unit) has formed Joint Investigation Teams (JITs), led by the Anti-Corruption Commission (ACC), with participation from the Criminal Investigation Department (CID), the Central Intelligence Cell (CIC), and the Customs Intelligence and Investigation Directorate (CIID). These teams have prioritised 11 nationally significant money laundering cases and are actively investigating them.

How Islami Bank was quietly taken over

So far, assets both within Bangladesh and abroad linked to the accused have been identified and attached. Additionally, BFIU has frozen over 6,500 suspicious accounts and shared more than 100 financial intelligence reports with relevant law enforcement agencies. The Task Force is also collaborating with several international law and litigation firms on other money laundering cases beyond the prioritized 11 cases, and is seeking to appoint legal representatives in various jurisdictions to overcome legal barriers to asset recovery.

The Task Force maintains close coordination with international organizations, including the Stolen Asset Recovery (StAR) Initiative, the US Department of Justice (USDOJ), the International Anti-Corruption Coordination Centre (IACCC), and the International Centre for Asset Recovery (ICAR), to access technical support, legal expertise, and training. To promote cross-border cooperation, the government is also working to sign Mutual Legal Assistance Treaties (MLATs) with several countries.

Bangladesh Bank's sweeping reform measures under the interim government – ranging from exposing the true scale of default loans to stabilising the foreign exchange market and enforcing monetary discipline – have marked a decisive turning point for the country's banking sector and are expected to shape its future governance.

These measures have restored depositor confidence, increased liquidity and contributed to a steady decline in inflation. Although inflation did not come down to the expected level, its further rise has been checked. However, little progress has been made in the repatriation of assets siphoned off from Bangladesh.

Under the reform programme, the Bangladesh Bank identified default loans of Tk6.44 lakh crore as of September, which was 36% of total loans, three times higher than the amount shown during the previous regime.

The huge default loans that were assessed through asset quality review by engaging foreign firms under the reform programme helped the central bank to go for proper treatment for weak banks.

In a landmark move, the Bangladesh Bank merged five Islamic banks – each burdened with default loan ratios exceeding 90% – to form a new entity, Sammilito Islami Bank.

Bangladesh Bank board also decided to liquidate another nine non-bank financial institutions, which are currently not in a position to continue to operate due to high default loans.

The total estimation for merger and liquidation is Tk70,000 crore, of which will be provided from the taxpayers' money to mitigate the hole created by massive corruption during the ousted prime minister Sheikh Hasina's 15-year regime.

Speaking at a recent event, Bangladesh Bank Governor Ahsan H Mansur said, "We have already started addressing the issues of five weak banks and provided Tk35,000 crore. But several others remain at risk. Resolving their problems will require another Tk35,000 crore, bringing the total cost to around Tk70,000 crore."

He said this massive amount cannot be mobilised overnight. "We are considering allocations over multiple fiscal years. It will have to be a phased recovery, not a one-time fix."

The governor said the Bangladesh Bank is taking steps to liquidate nine NBFIs, and four to five more NBFIs could face liquidation if they fail to restructure or raise fresh capital.

"Those which can prove viability will be given a chance to survive. We're not promising miracles. But with time, transparency, and the rule of law, we can rebuild trust in the financial system."

Mansur also acknowledged that the default loan situation is more serious than previously disclosed. The reported NPL figure had been hovering around 9% in the past. It is 36% now. "We are not going to manipulate the data. The public deserves transparency."

The governor said the central bank aims to bring down the NPL rate to 10% by March 2026. "It might take 10 years to reduce it to 4-5%, but that is the sustainable path."

What amendment in major laws

The Bangladesh Bank also formulated at least six laws, including amending the Bank Company Act to bring corporate governance in the board of banks, the Bangladesh Bank Order to ensure central bank autonomy, introduced Bank Resolution Act for effective resolution and Deposit Protection Act raising insurance coverage ceiling for depositors, Distressed Asset Management Ordinance for tackling default loans and Money loan court to speed up case settlement.

Out of six, two major laws, including the Bank Company Act and the Bangladesh Bank Order, are still under government review after the approval from the board of Bangladesh Bank.

Although the International Monetary Fund (IMF) has been pursuing Bangladesh Bank to implement the amendment of both laws, the government has been responding slowly, according to central bank sources.

In the final draft amendment to the Bank Company Act, the Bangladesh Bank focused on limiting the power of influential individuals and families and political figures.

The proposed draft limits the number of directors from a single family and their affiliates on bank boards from five to two, and cuts a director's continuous term from 12 years to six, in a move to curb family influence in bank management.

Such dominance by certain board members has crippled the country's banking sector over the past 15-20 years, particularly during the Sheikh Hasina regime, leading to rampant loan scams, rising non-performing loans, and loss of public funds and trust.

Conglomerates such as S Alam Group gained control of multiple banks and allegedly withdrew thousands of crores of taka, much of which was, ultimately, allegedly laundered out of the country.

The central bank also proposes to bar political figures from boards, ease foreign investors' shareholding limits, restrict one person from holding large stakes in multiple banks, and treat general and wilful defaulters equally.

The draft amendment to the Bangladesh Bank Ordinance 2025 introduces major changes in key appointments, mandate, and financial management to shield the central bank from political influence to ensure autonomy.

Under the draft, the president will appoint the governor and deputy governors. While the amendment initially removed government representatives from the board, the final version retained one, according to the draft approved by the board. At present, the board includes three government representatives.

The governor's post will be upgraded from secretary to ministerial status under the draft amendment.

The Bangladesh Bank already implemented the Bank Resolution Ordinance and Deposit Protection Act through merging five banks under the amended ordinance.

Reformation in forex market

The Bangladesh Bank also reformed forex market management by introducing a greater flexible exchange rate mechanism, which helped to bring stability in the currency market.

Foreign exchange reserves rebounded strongly after the interim government cleared external arrears. The Bangladesh Bank added over $8 billion to reserves within a year, raising the total from $18.8 billion in December 2024 to $26.8 billion as of 4 December 2025, enough to cover more than four months of imports.

A more flexible exchange rate regime, coupled with aggressive policy rate hikes, restored discipline to the currency market. The taka has held steady at Tk122-123 per dollar for six consecutive months. The central bank also stopped money printing and moved swiftly to merge and restructure troubled banks, calming depositors and bringing back liquidity. Deposits increased noticeably after governance reforms at problematic banks.

These measures helped inflation fall from a 12-year high of 11.36% in July 2024 to single digits for the past six months. Food inflation, once at 14%, dropped to 7.36% in November. Although still above the Bangladesh Bank's FY26 target of 6.5%, the government's Bangladesh State of the Economy 2025 attributes the improvement to monetary tightening, supply-side interventions, stable global commodity prices, and a steady exchange rate.

Development of asset recovery

Although the Bangladesh Bank formed a task force for supporting the identification, investigation, and repatriation of assets siphoned off from Bangladesh, little progress has been made in this regard due to the complex process.

Its key functions include removing legal barriers to expedite proceedings, managing recovered assets, coordinating with international partners for information sharing, and strengthening institutional capacity and internal coordination to ensure effective asset recovery.

According to monetary policy statement of Bangladesh Bank for first half of FY26, the BFIU (Bangladesh Financial Intelligence Unit) has formed Joint Investigation Teams (JITs), led by the Anti-Corruption Commission (ACC), with participation from the Criminal Investigation Department (CID), the Central Intelligence Cell (CIC), and the Customs Intelligence and Investigation Directorate (CIID). These teams have prioritised 11 nationally significant money laundering cases and are actively investigating them.

How Islami Bank was quietly taken over

So far, assets both within Bangladesh and abroad linked to the accused have been identified and attached. Additionally, BFIU has frozen over 6,500 suspicious accounts and shared more than 100 financial intelligence reports with relevant law enforcement agencies. The Task Force is also collaborating with several international law and litigation firms on other money laundering cases beyond the prioritized 11 cases, and is seeking to appoint legal representatives in various jurisdictions to overcome legal barriers to asset recovery.

The Task Force maintains close coordination with international organizations, including the Stolen Asset Recovery (StAR) Initiative, the US Department of Justice (USDOJ), the International Anti-Corruption Coordination Centre (IACCC), and the International Centre for Asset Recovery (ICAR), to access technical support, legal expertise, and training. To promote cross-border cooperation, the government is also working to sign Mutual Legal Assistance Treaties (MLATs) with several countries.

Bangladesh's financial system entered 2025 with fewer places left to hide. Years of weak loan discipline, repeated rescheduling, and regulatory forbearance had accumulated into visible stress across banks, especially those with governance and connected-lending problems. What followed was not a dramatic break, but a coordinated attempt to clean up balance sheets, install guardrails, and manage adjustment without panic.

The reform story of 2025 is therefore not about a single law or intervention. It is about sequencing: diagnose first, build tools for failure, protect depositors, tighten prudential rules – and only then confront the harder political questions about discretion, accountability, and central-bank power.

Uncovering the reality

Bangladesh Bank announced in 2024-25 that it would conduct independent Asset Quality Reviews of 17 banks – prioritising weak and Islamic banks – to establish a credible baseline of losses, capitalisation needs, and governance failures. AQRs would be conducted using best practice methodologies and external expertise.

A first group of six private banks AQRs was completed by mid-2025, with the remainder scheduled by year-end. The AQR results were shared with bank boards, confirming substantial under-recognition of non-performing assets and capital shortfalls. A second phase covering three additional banks was initiated, but the broader program stalled – effectively leaving the system with partial diagnosis and no system-wide reckoning.

AQRs are resource-intensive for both supervisors and banks. Conducting AQRs for all 17 banks in parallel would have strained BB's supervisory capacity and the availability of qualified external audit firms. The AQR program has crossed a point of no return – but not a point of no delay. Bangladesh has demonstrated that it can run credible diagnostics and act on some of them. Whether it completes the journey depends less on technical capacity than on political willingness to absorb the consequences of what the remaining AQRs are likely to show.

Resolving zombies and maintaining confidence

Bangladesh had long avoided: what happens when banks are not viable?

The Bank Resolution Ordinance filled a long-standing legal gap. It provided formal tools to intervene in failing banks through bridge institutions, purchase-and-assumption transactions, asset separation, bail-ins, bail-outs and – if necessary – temporary public ownership. A dedicated restructuring and resolution unit was set up to operationalise these powers.

This was about ending the default option of indefinite support. For the first time, the system was being designed to absorb bank failure without improvisation.

Resolution tools are politically fragile without depositor confidence. That constraint was addressed through the Deposit Protection Ordinance.

The reform doubled deposit coverage to Tk2,00,000 per depositor and cut payout timelines from months to just over two weeks. Separate protection funds were established for banks and finance companies, with clearer premium rules and membership obligations.

First results on the ground

The most visible application of this new framework was the consolidation of five troubled Islamic banks into a single institution under closer supervision. Rather than allowing multiple weak entities to drift independently – or triggering abrupt closures – authorities opted for aggregation. It is not a textbook resolution, but it marked a break from open-ended forbearance and signaled that Islamic banks would not be exempt from prudential discipline.

The consolidation was operationalised through a BB circular issued on December 30, which set out the legal and supervisory basis for transferring the operations of the five banks into the newly created Sommilito Islami Bank. The circular clarified the continuity of deposits and contracts, placed the new institution under enhanced regulatory oversight, and provided for liquidity support to ensure uninterrupted banking services.

From January 1, small individual depositors were able to access their funds through the new entity. Early results suggest the immediate objective was achieved: depositor panic was contained, payment services continued, and the authorities have gained time to address governance and capital issues within a single supervised platform.

Regulatory progress and regress

Alongside legal reform came quieter changes that matter just as much. Updated definitions of non-performing loans and forbearance reduced the scope for repeated cosmetic rescheduling. Cure-period requirements were tightened, and the transition path toward IFRS 9 – expected-credit-loss provisioning by 2027 – was reaffirmed. Once losses must be recognised earlier and provisioning becomes unavoidable, banks are forced toward recapitalisation, restructuring, or exit.

Rescheduling policy, however, moved in the opposite direction. While tighter classification rules constrained cosmetic rollovers, BB simultaneously revised rescheduling frameworks – especially for large loans. The rescheduling framework itself offered structured relief rather than blanket forbearance. It allows extended repayment tenors, grace periods on principal, and phased instalment schedules for stressed but operating borrowers, subject to documentation of cash flows and viability.

In effect, the framework created a formal channel to stretch repayment timelines while keeping loans within the banking system, delaying classification or resolution but avoiding abrupt defaults. Routing large loan rescheduling through a BB constituted committee reduced unilateral evergreening by weak banks, but it also created focal points for lobbying and rent-seeking. Credit outcomes shifted from bank–customer relationships to regulatory mediation, weakening the link between lending decisions and consequences. Discipline advanced – but cautiously, and unevenly.

The unfinished agenda

Reform intensity outside banking was more measured. The Bangladesh Securities and Exchange Commission focused on surveillance, disclosure, and market infrastructure rather than sweeping legislative change. Insurance reform under the Insurance Development and Regulatory Authority continued incrementally. Bankrupt non-bank financial institutions were dealt with through tighter supervision and restrictions on activity, aimed at containing risk rather than rapid turnaround.

Proposals to amend the Bangladesh Bank Order – aimed at strengthening independence, clarifying accountability, and aligning governance with international norms – remain unresolved. The bureaucracy has effectively played a kick-the-can game by protracting hard decisions about BB autonomy and oversight. At the same time, BB has continued to roll out risk-based supervision frameworks, sharpening off-site monitoring and prioritising supervisory attention toward weaker institutions, even as the legal foundations for its independence remain unsettled.

The uneven pace of reform reflects political triage: banking, as the core source of systemic risk and fiscal exposure, drew the heaviest attention. The deeper story of 2025 is not technocratic triumph or failure, but managed transition. Losses were surfaced, tools were built, and authority was reorganised – while discretion was carefully preserved. Whether this moment becomes a bridge to durable discipline, or hardens into a new equilibrium of managed delay, will turn on one unresolved question: whether reform of BB itself is finally confronted, rather than endlessly postponed.

Zahid Hussain is former lead economist at World Bank Dhaka office

The Indian textile and garment industry is deeply concerned over US President Donald Trump's warning of imposing a 500% tariff on imports from countries that purchase Russian oil. The announcement has already unsettled markets, with shares of Indian exporters falling sharply in Thursday's (8 January) trading.

If implemented, the proposed tariff would be added to the existing 50% import duty imposed last year, significantly increasing the cost burden on Indian goods entering the US, with exporters fearing such a move could severely disrupt trade flows.

Apprehension is particularly visible in Tiruppur, Tamil Nadu, the country's largest knitwear cluster, which contributes nearly 90% of India's knitwear exports.

Ajay Srivastava, founder of the Global Trade Research Initiative, warned that a 500% duty—along with possible secondary restrictions on services—could virtually shut down India's $120 billion annual exports to the US, its largest overseas market.

Vijay Agarwal, chairman of the Cotton Textiles Export Promotion Council, noted that overseas buyers who had earlier planned to shift sourcing to India are now reconsidering due to uncertainty surrounding Trump's threat. Since August last year, the existing 50% US tariff has already forced Indian exporters to cut prices, seek alternative markets, and reroute shipments through neighbouring countries.

The US currently accounts for nearly 30% of India's garment exports. During Fiscal Year 2024–25, India exported apparel and textiles worth $37 billion. Industry data shows apparel exports rose marginally, while textile shipments declined in the April–November period.

Rajat Jaipuria, managing director of Rajalaxmi Cotton Mills, cautioned that a 500% tariff would effectively function as an embargo, with severe consequences for the sector.

Bangladesh Bank Governor Ahsan Mansur has issued a stern warning that the "culture of looting" within the nation's banking sector will never be allowed to return.

He emphasised that achieving a transparent financial system requires the essential cooperation of all stakeholders.

The governor made the remarks while speaking as the chief guest in the closing session of the International Islamic Finance and Banking Conference held at the Nawab Nawab Ali Chowdhury Senate Bhaban in the University of Dhaka, on Saturday (10 January).

Mansur noted that Islamic, or Shariah-based banks have historically been competitive, offering attractive profits to depositors.

However, he pointed out that significant sums were looted from this sector due to a failure to ensure corporate governance by specific individuals and institutions - a pointed reference to the unprecedented assault on the banking sector by the ousted Awami League regime's cronies, most notably the S. Alam Group, which secretly took control of at least six banks. All of them were Shariah-based.

Despite these challenges, the Governor highlighted that public trust in Islamic banking remains intact. This was amply demonstrated by the fact that these banks received the highest volume of deposits over the past year.

Specifically, Islami Bank Bangladesh has already begun returning the liquidity support funds it previously received from the central bank.

To prevent future financial crimes and ensure transparency in loan disbursement, the governor announced that Bangladesh Bank has implemented strict control measures.

"A new Islamic Banking Act is currently being drafted to provide a more robust legal framework for the sector," Mansur revealed.

He also called upon Shariah Boards to play a more proactive and courageous role. He urged board members to act independently and without fear of losing their positions, emphasising that their oversight is crucial for the sector's integrity.

Addressing the 'Sukuk' (Islamic bond) market, the governor admitted that the forced sale of the Beximco Sukuk Bond had damaged the market's reputation and eroded investor confidence.

However, the governor noted that the government has been requested to issue new Islamic Sukuk bonds, and preliminary work on this has already commenced.

Concluding his speech, Mansur reiterated that "financial autocracy" has no place in Bangladesh's future.

He stressed that while the central bank is taking the lead, the support of academicians, professionals, and the general public is vital to building a world-class Islamic banking sector defined by governance and accountability.

Academics, researchers, and Islamic Banking experts attended the event.

India's rice exports jumped 19.4% last year to the second-highest on record after New Delhi lifted all export curbs, making shipments more competitive, government and industry officials told Reuters today (10 January).

An improved flow of rice from the world's largest exporter of the grain curbed shipments from rivals Thailand and Vietnam and drove prices in Asia to their lowest in nearly a decade, easing costs for poor consumers in Africa and other regions.

"Indian shipments rebounded quickly after the government lifted export restrictions" in March, said a government official, who asked not to be named as he was not authorised to speak to the media.

As supplies improved with record production, India removed the last of the export imposed in 2022 and 2023.

Exports rose to 21.55 million metric tons from 18.05 million in 2024, near the 2022 record of 22.3 million tons, the official said.

Non-basmati rice shipments jumped 25% to 15.15 million tons, while basmati exports increased 8% to a record 6.4 million tons, he said.

Non-basmati rice shipments rose sharply to Bangladesh, Benin, Cameroon, Ivory Coast and Djibouti, while Iran, the United Arab Emirates and Britain increased purchases of premium basmati rice during the year, said another government official.

India usually exports more rice than the combined shipments of the world's next three largest exporters: Thailand, Vietnam and Pakistan.

"Indian rice is very competitive compared with supplies from other exporting countries, with lower prices helping India regain lost market share," Nitin Gupta, senior vice president at Olam Agri India, said on the sidelines of the India International Rice Summit.

Paola Pampaloni, the visiting acting managing director for Asia-Pacific at the European External Action Service (EEAS), yesterday said the comprehensive partnership agreement (CPA) between Bangladesh and the EU would pave the way for deeper ties between the two partners and open up significant opportunities in trade and investment.

Pampaloni made the remarks during a courtesy call on Chief Adviser (CA) Professor Muhammad Yunus at the State Guest House Jamuna in Dhaka.

During the meeting, the two sides discussed issues concerning Bangladesh-EU relations, including negotiations on the framework agreement on the CPA, the upcoming general elections and referendum, combating illegal migration, and expanding trade and investment, according to a statement from the Chief Adviser's Office.

Pampaloni noted that the initiation of negotiations on the CPA in November 2024 came after 20 years during which there had been a general partnership agreement.

She congratulated the chief adviser for the "incredible and massive" work he has undertaken since assuming leadership of the interim government in August 2024, particularly in carrying out important reforms to which the EU, as Bangladesh's political and largest commercial partner, attaches great importance, and for ensuring peace and stability at a critical juncture for the country.

The senior EU official welcomed the progress made on the CPA between the EU and Bangladesh.

She said the pact would pave the way for deeper ties between the two partners and open up significant opportunities in trade and investment.

Yunus described the CPA as one of the most important agreements for Bangladesh and said it would "solidify" Bangladesh-EU relations.

Pampaloni said the head of the EU Election Observation Mission would arrive in Bangladesh later this week and is expected to hold a series of meetings with political leaders and relevant authorities.

Pampaloni stressed the importance of a peaceful election, saying Bangladesh-EU relations could reach new heights following a successful democratic transition, ushering in a new era of engagement between Dhaka and the world's largest economic bloc.

Lutfey Siddiqi, special envoy of the chief adviser; Lamiya Morshed, SDG coordinator and senior secretary; and Michael Miller, the European Union ambassador to Bangladesh, were also present at the meeting.

Bangladesh's economic health expanded at a slightly faster pace in December last year, with the Purchasing Managers' Index (PMI) rising to 54.2, up 0.2 points from November.

Data showed continued expansion in agriculture, manufacturing, and services, while the construction sector returned to marginal contraction, according to a press release issued today (7 January) by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB).

According to the statement, the agriculture sector grew for the fourth consecutive month, supported by higher new business, business activity, employment, and input costs, despite a faster contraction in order backlogs.

Manufacturing expanded for the 16th month, driven by growth in new orders, exports, output, input purchases, and employment. The finished goods index returned to expansion, while order backlogs contracted at a slower pace.

The construction sector, however, slipped back into marginal contraction, with new business declining faster, while growth in construction activity and employment remained limited. Order backlogs continued to shrink for the fifth consecutive month.

The services sector expanded for the 15th month, with employment and input cost indices rising, even as new business, overall activity, and order backlogs contracted.

PMI is a globally recognised economic indicator that surveys purchasing managers to track business conditions, providing timely insight into economic trends ahead of official GDP data.

"The latest PMI readings indicate a marginal expansion of the economy, driven by strong agricultural sector performance. Manufacturing sector experienced second straight month of slowdown, while the construction sector reverted to contraction," said M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh.

In terms of the future business index, slower expansion rates were recorded for all the key indexes of agriculture, manufacturing, construction, and services.

"The future business index however remained in expansion across all key sectors of the economy, suggesting sustained optimism and continued growth momentum post-elections," said Reaz.

Bangladesh's gross foreign exchange reserves have increased by nearly $1 billion in just 15 days, reaching $29.19 billion, according to the Bangladesh Bank.

The central bank's spokesperson and Executive Director Arief Hossain Khan disclosed the information to journalists today (7 January).

Under the International Monetary Fund's BPM6 accounting method, the country's gross reserves stood at $28.04 billion on December 22, 2025. This means reserves rose by about $1 billion within a fortnight.

The central bank has been boosting reserves mainly by purchasing US dollars from commercial banks through auctions.

A senior Bangladesh Bank official said the supply of dollars in the banking system has improved due to a rise in remittance inflows.

"To prevent the exchange rate from falling amid higher dollar inflows, the central bank has been buying dollars through auctions," the official added.

Bangladesh Bank data shows that, following the latest purchases, total dollar buying during the first six months of the current 2025–26 fiscal year (from July to January 6) has reached $3.54 billion.

As a result, total dollar purchases in January 2026 alone have stood at $411 million.

Bidisha International Limited, a corporate director of Rangpur Dairy and Food Products Limited (RD Food), has announced plans to sell an additional 15 lakh shares at the prevailing market price through the Dhaka Stock Exchange (DSE) within the next 30 working days.

The disclosure was filed with the DSE today (7 January), indicating that the shares will be sold in the public market. Following the disclosure, its share price rose by 1.92% to reach at Tk21.20.

This follows an earlier announcement on 24 December, when Bidisha International said it would offload the same number of shares from its larger holding of 51.53 lakh shares.

That earlier sale, however, has yet to be completed, according to market disclosures. Following partial adjustments, the corporate director currently holds 36.53 lakh shares of RD Food.

The planned divestment coincides with a series of concerns raised by the company's external auditor over financial reporting practices and liquidity pressures.

In a qualified opinion, Faruk Ahmed, partner at Khan Wahab Shafique Rahman & Co, Chartered Accountants, highlighted discrepancies in deferred tax calculations.

The auditor said that RD Food applied an outdated statutory tax rate of 15% instead of the applicable 22.5% for the year, leading to an under-provision of deferred tax of approximately Tk2.63 crore. This miscalculation directly affected the company's reported earnings per share (EPS).

According to the audited financial statements, RD Food posted a net profit of Tk4.61 crore for the year, translating into an earnings per share of Tk0.61. This represented a sharp decline of roughly 40% compared to the previous year's profit of Tk7.68 crore and EPS of Tk1.01.

The company attributed the fall in earnings to rising import costs, persistent inflationary pressures and higher bank borrowing rates.

The auditor also flagged unresolved issues involving unclaimed dividends and IPO subscription refunds. An amount of Tk57.37 lakh in IPO subscription funds remained unadjusted under non-claimed general share applications, a situation the auditor said overstated the company's capital position.

In addition, discrepancies were identified in the handling of unclaimed dividends—amounts approved for distribution but not collected by shareholders within the prescribed timeframe.

Under regulatory requirements, unclaimed dividends outstanding for more than three years must be transferred to the Capital Market Stabilisation Fund (CMSF).

The auditor reported that RD Food had unclaimed dividends amounting to Tk18.89 crore. However, only Tk1.94 lakh was found in the designated bank account. While Tk4.04 lakh had been transferred to the CMSF, the remaining balance that should have been available was missing and had instead been used for operational purposes.

The interim government has given in-principle approval for the listing of profitable State-Owned Enterprises (SOEs) and multinational companies (MNCs) with government shareholdings on the capital market, marking a significant step towards enhancing market depth and restoring investor confidence.

Initially, steps will be taken to bring 10 profitable companies to the stock market. These are Karnaphuli Gas Distribution Company, Karnaphuli Fertiliser Company, North-West Power Generation Company, Paschimanchal Gas Company, Sylhet Gas Fields, Syngenta Bangladesh, Unilever Bangladesh, Synovia Pharma, Novartis (Bangladesh) and Nestlé Bangladesh.

The decision was finalised at a meeting held yesterday (7 January) at the Secretariat, chaired by Finance Adviser Salehuddin Ahmed. The finance adviser and Investment Corporation of Bangladesh (ICB) Chairman Abu Ahmed briefed journalists after the meeting.

Under the plan, several profitable state-owned enterprises will be directly listed on the capital market, while multinational companies will decide on listing subject to approval from their respective boards of directors.

"We have given our consent from the government side. The process will begin, but the multinational companies have made it clear that they cannot make a final decision without board approval," the finance adviser said.

He noted that the stock market has largely returned to compliance with regulatory frameworks, making it essential now to increase market depth and rebuild investor confidence. "That is why we are taking the initiative to offload shares of fundamentally strong government companies."

Salehuddin added that although similar discussions had taken place in the past, this time the initiative has progressed further. "The ministry has given its consent, and the concerned companies have indicated their willingness to offload shares. We have asked others to move quickly so that the process can start."

Asked whether the listings could be completed within the tenure of the current government, the finance adviser said efforts are under way but cautioned that the process was complex. "We cannot bypass the Companies Act."

'MNCs can't avoid listing'

Abu Ahmed said the decision was made in the public interest and argued that there was no justification for multinational companies avoiding listing in Bangladesh. "If Nestlé can be listed on the Bombay Stock Exchange, what is the problem in Bangladesh?" he said, adding that while Unilever's former GSK unit is listed, its core business remains unlisted, despite the company being among the top listed firms in India, Pakistan and Thailand.

The ICB chairman said multinational companies should be offered incentives or tax concessions if necessary, but warned that higher taxes could be imposed if they chose not to come to the market. "The companies have been given a clear message that people in Bangladesh want to see these good companies listed on the stock exchange."

Referring to Unilever Bangladesh, in which the government holds nearly 40% shares, he said the company was reluctant to offload even 5% of that stake. "Can't the government sell its own shares?" he added.

Amid a prolonged drought in initial public offerings (IPO), the Bangladesh Securities and Exchange Commission (BSEC), the capital market regulator, has sought stronger participation from merchant bankers in accelerating new company listings on the stock market.

In a courtesy meeting with the newly formed committee of the Bangladesh Merchant Bankers Association (BMBA), the regulator assured issue managers of all-out support in facilitating company listings, citing that the commission is now fully prepared to approve IPOs as the new rules are already in effect with several major changes.

Bangladesh's capital market has seen no new IPO approvals over the past year, as companies remained reluctant to go public amid regulatory amendments, economic headwinds and political uncertainty.

According to BSEC data, the last company to receive IPO approval was Techno Drugs on 7 March 2024, which raised Tk100 crore and began trading four months later. Since then, no new IPO has been approved.

The meeting between the regulator and issue managers was attended by BSEC Chairman Khondoker Rashed Maqsood, all commissioners, and members of the BMBA executive committee, including President Iftekhar Alam and General Secretary Sumit Poddar, according to a press release.

Maqsood said, "One of the key responsibilities of merchant bankers is issue management, underwriting, and portfolio management. With the amendment of IPO rules, the opportunities and potential for bringing quality new companies to the capital market have increased manifold."

He said the commission expects the BMBA and its member issue managers to work toward bringing good companies to the capital market. In this regard, the BSEC will always maintain a positive approach and provide all necessary support to ensure the listing of quality companies."

The BSEC chairman also emphasised the importance of enhancing the capabilities of merchant banks in capital formation, portfolio management, and corporate advisory services. He noted that improving the competence, efficiency, and ethics of merchant banks would attract greater interest and participation in the capital market from investors and all other market participants.

A member of BMBA's new committee said, "The commission assured us of all-out support to bring new companies to the capital market and break the long-standing IPO dry spell."

EBL Securities, in its yearly review, noted that the primary market remained frozen in 2025 for over 1.5 years – an unprecedented and the longest dry spell in recent times.

Cancellation of pending IPOs, delays in proposed amendments to the Public Issue Rules, and market uncertainties amid prevailing political conditions have stalled primary market operations, adding further strain to investor sentiment during an already prolonged period of market downturn, it noted.

Stocks rebounded strongly today (7 January) as renewed buying in large-cap shares pushed the Dhaka Stock Exchange's benchmark index close to the 5,000-point threshold, offsetting lingering concerns over weak financial institutions.

The DSEX rose 39 points to close at 4,992, marking a broad-based rally with most sectors ending in positive territory. The advance helped the market claw back part of its recent losses, as investors selectively accumulated fundamentally sound stocks. The blue-chip DS30 index added 17 points to finish at 1,913, driven mainly by gains in banking, telecommunications and pharmaceuticals.

Market breadth was positive, with 193 stocks advancing against 131 decliners, while 64 issues remained unchanged. Turnover inched up to Tk465 crore, suggesting cautious but gradually improving investor participation following recent volatility. Market participants said renewed interest in large-cap and dividend-paying stocks lifted overall sentiment, particularly in the banking sector, which posted the day's strongest performance. Banking shares rose an average of 1.83% on bargain hunting after recent corrections. Telecommunications advanced 0.80%, engineering stocks gained 0.56%, and food and allied companies added 0.49%.

Trading remained concentrated in a limited number of active counters. Orion Infusion led the turnover chart, followed by City Bank, Square Pharmaceuticals, Uttara Bank and Malek Spinning, reflecting strong interest in both financial and manufacturing stocks. Several loss-making companies featured prominently among the top gainers as speculative buying drove sharp price increases. Zeal Bangla Sugar surged nearly 10%, while Shyampur Sugar and Familytex also posted strong gains. Regent Textile jumped more than 8%, underscoring continued risk-taking by a segment of retail investors despite weak fundamentals.

In contrast, troubled non-bank financial institutions faced heavy selling pressure and dominated the list of top losers. International Leasing and Fareast Finance both fell by more than 10%, while FAS Finance, Premier Leasing and Prime Finance also recorded steep declines. Market insiders said confidence in these stocks remains severely eroded following recent remarks by the Bangladesh Bank governor on declaring several NBFIs non-viable.

Positive momentum was also evident at the Chittagong Stock Exchange, where both key indices closed higher. The CSCX index rose 76 points to 8,633, while the CASPI index advanced 108 points to settle at 13,975. Turnover at the port city bourse increased to Tk12.80 crore, signalling improved participation.

Bangladesh's economy might have regained pace in December, signalling a slightly faster pace of economic expansion, supported mainly by continued growth in agriculture, manufacturing and services, according to the Bangladesh Purchasing Managers' Index (PMI).

The December reading of PMI rose by 0.2 points month-on-month to 54.2 from 54 the previous month, said a press release by the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), and the Policy Exchange Bangladesh (PEB). In October, the PMI reading was 61.8.

The PMI is a forward-looking indicator used globally to gauge economic direction. A reading above 50 indicates expansion, while a reading below 50 indicates contraction.

Agriculture posted its fourth consecutive month of expansion and at an accelerated rate, emerging as the strongest-performing sector, the release said.

"The latest PMI readings indicate a marginal expansion of the economy, driven by strong agricultural sector performance," said M Masrur Reaz, chairman and chief executive officer of PEB.

"The latest PMI readings indicate a marginal expansion of the economy, driven by strong agricultural sector performance," said M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh

The latest survey showed stronger expansion in new business, overall activity, employment and input costs. However, order backlogs continued to contract, albeit reflecting demand pressures easing only gradually.

Manufacturing remained in expansion for the 16th straight month, though the pace slowed marginally.

Positive readings were recorded across most key indicators, including new orders, new exports, factory output, input purchases, imports, input prices, employment, and supplier deliveries.

The finished goods index returned to expansion, while order backlogs showed a slower rate of contraction, indicating some improvement in demand conditions.

In contrast, the construction sector slipped back into marginal contraction after three consecutive months of growth.

The new business index contracted at a faster rate, while construction activity and employment posted slower expansion. Input costs rose at a slightly quicker pace.

Order backlogs continued to contract for the fifth consecutive month, though the rate of contraction eased.

The services sector extended its expansion streak to 15 months, with growth marginally faster than in November. Employment and input costs remained in expansion territory.

However, contraction was recorded in new business, business activity and order backlogs, pointing to softer demand conditions in parts of the sector.

Looking ahead, the future business index remained in expansion across agriculture, manufacturing, construction and services, although at slower rates in all sectors.

While manufacturing saw a second consecutive month of slowdown and construction reverted to contraction, sustained optimism persists, with growth momentum expected to continue in the post-election period, said the PEB chairman.

The MCCI and PEB began publishing the PMI in January last year. Initiated by the UK government, it covers over 500 private sector firms across agriculture, manufacturing, construction, and services.

Global oil prices fell on Wednesday and China denounced the US as a bully after President Donald Trump's administration said it had persuaded Venezuela to divert supplies from Beijing and import up to $2 billion worth of embargoed crude.

The deal was in line with Trump's stated aim of controlling the South American Opec member's vast oil reserves after deposing its leader Nicolas Maduro whom it had long cast as a drug-trafficking dictator in league with Washington's foes.

Maduro's Socialist Party allies remain in power in Venezuela, where interim President Delcy Rodriguez is treading a fine line between denouncing his "kidnapping" and kick-starting cooperation with the US under explicit threats from Trump.

TRUMP: OIL MONEY 'WILL BE CONTROLLED BY ME'

He said the US would refine and sell up to 50 million barrels of crude stuck in Venezuela under a US blockade as a first step in his plan to revive a sector long in decline despite sitting on the largest reserves in the world.

"This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!" Trump posted on Tuesday.

Crude prices fell around 1.0 percent on world markets due to anticipated increased supplies.

The deal could initially require cargoes bound for Venezuela's top buyer China to be rerouted as Caracas seeks to unload millions of barrels stranded in tankers and storage.

"The United States' brazen use of force against Venezuela and its demand for 'America First' when Venezuela disposes of its own oil resources are typical acts of bullying," Chinese foreign ministry spokesperson Mao Ning told a press conference.

"These actions seriously violate international law, gravely infringe upon Venezuela's sovereignty, and severely damage the rights of the Venezuelan people."

China, Russia and leftist allies of Venezuela have all denounced the US raid to capture Maduro at the weekend, which was Washington's biggest such intervention in Latin America since the 1989 invasion of Panama to topple Manuel Noriega.

Washington's allies are also deeply uneasy at the extraordinary precedent of seizing a foreign head-of-state, with Trump making a slew of threats of more action - from Mexico to Greenland - to further US interests.

DOZENS DIED DURING CAPTURE OF MADURO

Some details are still sketchy on just how US Special Forces swooped into Caracas by helicopter under darkness on Saturday, smashing Maduro's security cordon and seizing him at the door of a safe room, with no loss of US lives.

Venezuela has not confirmed its total losses, though the army posted a list of 23 of its dead and ally Cuba said 32 members of its military and intelligence services died. The US estimates about 75 fatalities, the Washington Post reported.

Maduro, 63, who had ruled Venezuela since the 2013 death of his predecessor and mentor Hugo Chavez, pleaded not guilty on Monday to narcotics charges in a Manhattan court where he was shackled at the ankles and wore orange and beige prison garb.

Trump appears to be calculating that it is better for stability in Venezuela to work with Maduro's senior allies for now. He is stressing revival of the oil sector with the help of US firms as the priority, not the freeing of political prisoners or a new vote for a democratic transition.

VENEZUELAN OPPOSITION KEPT WAITING

Venezuela's main anti-Maduro figure Maria Corina Machado, who left in disguise to pick up the Nobel Peace Prize in October, wants to return home where she says the opposition would easily win a free vote.

But she is also taking care not to antagonise Trump, saying she would like to personally give him the Nobel prize which he had coveted and which she dedicated to him at the time. She says she is fully on board with his aspirations to make Venezuela a major ally of the US and the energy hub of the Americas.

Banned from running in a 2024 election, Machado's ally Edmundo Gonzalez won overwhelmingly, according to the opposition, the US and various election observers.

While working with Rodriguez and other top Venezuelan officials, the US has warned they must cooperate or risk sharing Maduro's fate.

Hardline Interior Minister Diosdado Cabello, who controls security forces accused of widespread rights abuses, is under particular scrutiny, sources told Reuters.

The US is also closely watching Defense Minister Vladimir Padrino, who like Cabello is under a US drug trafficking indictment and has a multi-million-dollar bounty on his head.

Rodriguez herself is under US sanctions, with her foreign financial assets identified as potential leverage, one source briefed on US administration thinking said.

The US is also pressuring the interim Venezuelan government to expel official advisers from China, Russia, Cuba and Iran, the New York Times reported.

Japanese automakers are losing market share in Southeast Asia as Chinese rivals ramp up local production to drive electric vehicle sales in the region.

In response, Japanese car companies have been scaling back production in Thailand one after another. This could deal a blow to supply chains in the Southeast Asia region, which is home to more than 2,700 Japanese parts manufacturers.

Market share could fall below 70 percent.

At the Thailand International Motor Expo, which was held in Bangkok in November and December, Toyota Motor Corp. unveiled the latest edition of its Hilux line of pickup trucks, which recently underwent a full overhaul for the first time in a decade. In addition to improving the fuel efficiency of the diesel engine models, the company has added an EV model to the lineup. It has already begun accepting orders.

In Thailand, pickup trucks are regarded as the "national car," and the Hilux, which is mainly produced in the country, has enjoyed robust popularity there.

However, during a press conference, Noriaki Yamashita, president of Toyota Motor Thailand Co., said with a stern expression, "We want to protect our supply chains by increasing sales."

Thailand accounts for nearly 20 percent of the Southeast Asian auto market. However, the combined share of the Thai market held by nine Japanese automakers dropped to 69.8 percent for the first 10 months of 2025, 6.6 percentage points down from the same period in 2024.

These companies maintained a market share in the high 80 percent range to 90 percent throughout the 2010s, but this plunged to 77.8 percent in 2023. It is even possible that it will be below 70 percent for the entirety of 2025.

In Indonesia, which accounts for about 30 percent of the Southeast Asian auto market, Japanese automakers also saw their market share fall below 90 percent in 2024 and drop even further, to 82.9 percent, for the first 10 months of 2025.

Competition between Japanese and local automakers is intensifying in Vietnam.

The aggressive expansion of Chinese automakers, such as BYD, into Southeast Asian countries, including Thailand and Indonesia, since 2022 has been a major factor in Japanese automakers' sudden loss of ground.

By greatly bringing down the price of EVs, Chinese car companies have broken into what was once a Japanese stronghold, taking market share of over 20 percent in Thailand. Chinese automakers have also ramped up EV production at new plants in Thailand and are fiercely competing with Japanese firms even in Indonesia.

Under the pressure of this Chinese assault, Japanese automakers are scaling back their output in Thailand. Honda Motor Co. will consolidate its two finished-vehicle plants in the country into a single location in 2026 at the earliest. Mitsubishi Motor Corp. also plans to suspend production at one of three plants in 2027.

According to data analysis firm MarkLines Co., of 2,792 Japanese parts manufacturers operating in Southeast Asia, nearly half are based in Thailand. More Japanese firms operate in Southeast Asia than in China or North America, and they have leveraged strong sales networks to build robust regional supply chains.

Thailand serves as a hub from which these Japanese firms can export goods to other Southeast Asian nations. However, some subcontractors have begun finding it more difficult to maintain their local production bases as orders have decreased due to finished-vehicle plants operating at lower rates, a source from a Japanese bank said.

Japanese automakers are beginning to boost sales by expanding their lineups of hybrid vehicles, a segment where they excel. However, if Chinese automakers continue their offensive, the impact on the parts suppliers could spread further.

Bangladesh's treasury won't feel dollar stress even after settling import- payment obligations to the Asian Clearing Union (ACU) member- countries as gross foreign-exchange reserves are yet expected to stay over US$32 billion.

The latest payment of $1.5 billion is scheduled to be remitted to the ACU headquarters in Tehran today (Thursday), officials said Wednesday.

As per the union's existing provisions, outstanding import bills and interest thereof are to be paid by member-countries every two months.

After the payment for the November-December 2025 period, the country's gross forex reserves are estimated to stand over $32-billion mark Thursday, little down from $33.78 billion on the previous working day. The reserves stood at $33.71 billion Tuesday.

"Our forex reserves now stand at a satisfactory level, even after making the routine payment to the ACU," a senior official of Bangladesh Bank (BB) told The Financial Express (FE) in response to a query about any worry.Financial Analysis Service

The central bank has been working to build up the reserves since the recent mass uprising in 2024, according to the BB official, who cites the reasons like steady inflows against subdued outflows.

"Higher inflow of remittances along with steady growth in export earnings has helped boost the country's forex reserves," the central banker explains.

Purchase of the greenback from the commercial banks by the central bank has also contributed to the rise forex reserves recently, he adds.

The central bank of Bangladesh has so far bought $3.55 billion from banks directly since July 13 last under the prevailing free-float exchange arrangement, latest BB data show.

"Lowe import-payment obligations have also contributed to improving the country's forex-reserves situation," another BB official says, adding that the country is able to meet more than five months' import-payment bills with the existing reserves.

AkijBashir Group, one of Bangladesh's largest diversified industrial conglomerates, is set to enter the country's rapidly expanding cable manufacturing market with an initial investment exceeding Tk300 crore.

The group, which will formally begin commercial operations today with a launch event in Dhaka, will initially focus on domestic, industrial and communication cables, with plans to gradually expand into high-voltage and specialised cables in later phases. Industry insiders say the move is likely to intensify competition in a market currently valued at around Tk12,000 crore.

AkijBashir Group Chief Operating Officer Khorshed Alam told TBS, "Building materials already contribute more than 60% of our total business. Our strategic objective is to further expand this division, enabling consumers to source most construction-related products from a single, trusted brand. The decision aligns with the group's long-term strategy to strengthen its building materials portfolio."

According to company officials, the group had acquired a nearly ready cable manufacturing facility previously owned by Eminence Cable Central Well. The plant features a world-class layout and machinery sourced from China, Europe, Germany and India.

Initially, the factory will have the capacity to process around 300 tonnes of copper cables and 200 tonnes of PVC annually. The project is expected to generate employment for nearly 500 people, both directly and indirectly.

AkijBashir has also outlined plans to double production capacity within the next year, subject to market response.

According to Khorshed Alam, the group's market research revealed structural weaknesses in the existing cable industry.

"In some segments, the market shows monopolistic behaviour, leading to unhealthy competition and dissatisfaction among channel partners and consumers. In other cases, inconsistent supply due to capacity and quality issues has created uncertainty," he said. "These gaps present an opportunity for a player that can ensure consistent supply, competitive pricing and uncompromised quality."

A new net zero journey for new Akij breakaway

Bangladesh's cable demand has surged in recent years, driven by urbanisation, housing projects, industrial expansion and large infrastructure developments such as metro rail lines, tunnels and elevated expressways. Industry analysts project annual growth of 10-15% over the next decade, barring short-term economic disruptions.

Industry insiders say Bangladesh's domestic cable market has expanded from around Tk2,000 crore to Tk12,000 crore over the past decade, driven by rapid electrification and infrastructure development. More than 120 companies now operate in the sector, generating over 50,000 jobs. BRB Cable Industries Limited leads the market with over 30% share, while Bizli Cables is the second-largest producer. Other key players include BBS Cables, Paradise Cables, and Walton. Despite sufficient local capacity, imported cables continue to be widely used in government projects.

Technology and safety focus

A key differentiator of AkijBashir's cable offering will be its emphasis on safety and advanced insulation technology. The company plans to introduce three-layer insulated cables, still rare in the domestic market, designed to significantly reduce electrical fire risks.

"Most cables available locally use two-layer insulation. We are introducing three-layer insulation technology that can withstand temperatures of up to 105 degrees Celsius," Khorshed said.

"This level of safety is crucial, especially considering that a large portion of urban fires in Bangladesh are linked to electrical faults."

The company will source copper exclusively from London Metal Exchange-approved suppliers, ensuring 99.9% purity, while PVC and other raw materials will be procured from verified international sources.

"Quality begins with raw materials. We are fully committed to maintaining international standards, even if it means higher costs," Khorshed added.

Why cable quality should matter more than price

While premium raw materials raise production costs, AkijBashir says its pricing strategy will remain market-sensitive.

"We will not position our products beyond consumers' reach. Ours is a competitive market, and we intend to price our cables in line with existing products without compromising on quality," Khorshed said.

Industry experts note that price competition has often pushed some manufacturers to compromise on materials, increasing safety risks. AkijBashir's challenge will be to balance cost efficiency with its quality commitments.

AkijBashir operations span fast-moving consumer goods, logistics, and building materials. Its building materials division covering steel, tiles, sanitaryware and boards has emerged as a key growth driver.

On some days, Dolon simply stops taking her medicine. Not because her condition has improved or doctors advised her to. She stops because she is exhausted mentally, financially and emotionally.

Almost all her salary now disappears into medication and treatment. Every few months, prices rise again — quietly but relentlessly — outpacing her income and shrinking her choices.

"This is one of the reasons I don't even think about getting married," she said. "When I think about children, I feel scared. I can barely manage my own life."

However, for Saiful Islam, a thyroid cancer patient, daily medication is non-negotiable. Missing a single day once landed him in emergency care, with doctors fearing a relapse. But inflation has meant that life is shrinking inch by inch.

"I must undergo Tg, anti-Tg, serum calcium, scans, FT3 and FT4 tests every three months. Once the reports stabilised after a year, the tests became mandatory every six months. I must take three Thyronorm 50 tablets daily. Missing even one day causes complications. When I first started the medication, one strip cost Tk120. Then it became Tk180, and now it is Tk240. I have no choice but to take it," Saiful said.

"Earlier, I used to buy shirts worth Tk1,000; now I buy ones priced at Tk600. Where I once ate two kilograms of fish per week, I now eat one. This is how I am adjusting. There is no alternative," he added.

Since inflation accelerated after 2022, illness has become not just a health crisis in Bangladesh but a financial one. Families are cutting back on food, clothing, travel — even dignity — selling homes, skipping doses, and delaying treatment just to survive rising medical costs amid a broader cost-of-living squeeze.

Skipping doses, selling homes, taking loans

Bangladesh today bears one of the heaviest private healthcare burdens in the world. According to official data from the National Health Accounts, 68.5% of medical expenses were paid out of pocket in 2020, rising to around 73% in 2021. Only war-torn Afghanistan fares worse. The World Health Organization recommends a maximum of 20%.

Behind these numbers are people like Dolon and Saiful, recalibrating their lives around pills, test reports, and medical bills.

In Rajshahi, Nadim Abdullah runs a small shop that supports his father, younger sister, wife, and himself. When someone in the family falls sick, the business grinds to a halt.

"Sometimes we are supposed to take seven days' medicine, but we stretch it over three days," he said. "If I take medicine properly, the shop's cash will be gone."

Loans followed. NGO installments piled up. Eventually, Nadim sold his house.

"My wife has been suffering from gynaecological problems for four years," Nadim explained. "I can't afford proper treatment. I bring home homeopathic medicine just to give her some comfort. It doesn't work. This July, I sold my house. Over more than a decade, my inability to sustain and manage my business led me to accumulate debts of Tk5–7 lakh. I sold my house to repay them."

According to a 2022 survey by the Bangladesh Institute of Development Studies (BIDS), approximately 18% of the households face catastrophic health expenditures and more than 6.13 million people were pushed below the poverty line due to healthcare costs. Households cope by borrowing, selling assets, or simply avoiding treatment altogether.

My wife has been suffering from gynaecological complications for four years. I can't afford proper treatment. I bring home homeopathic medicine just to give her some comfort. It doesn't work. This July, I sold my house.
Nadim Abdullah, shopowner, Rajshahi

Rumana Huque, professor of Economics at the University of Dhaka and a public health specialist, believes that the crisis cannot be separated from the post-pandemic economy.

"Since Covid-19, people have been under immense pressure," she said. "Add to this the Ukraine–Russia war, the overall economic slowdown, and Bangladesh's political situation.

"What we see in labour force surveys is rising unemployment, especially among women. In this context, the macroeconomic situation is directly affecting people's ability to pay for healthcare from their own income," Rumana added.

Women's unemployment has risen the fastest, even as healthcare costs climb. For many families, women quietly absorb the shock — cutting their own needs first.

Medicines: The biggest drain

The largest share of out-of-pocket spending in Bangladesh goes to medicines. According to BIDS, 54.4% of the cost was spent on purchasing medicines, while the diagnostic cost is 27.52%, 10.31% for consultation and 7.77% for transport cost.

Rumana Huque said Bangladesh's medicine prices are unusually high compared to neighbouring countries.

"If we compare with India, Nepal or Pakistan, medicine prices in Bangladesh are relatively higher. This is often disputed by pharmacists, but comparative data shows clearly that prices here are significantly higher."

The absence of a structured referral system worsens the problem. Patients can buy many drugs over the counter without prescriptions. Self-medication rises. Costs spiral.

"People end up buying medicines on their own," Rumana explained. "That increases out-of-pocket expenditure even further."

In theory, essential medicines are free at public facilities. In reality, supplies dry up fast.

"In many upazila health complexes, medicines run out within 15 to 20 days. After that, patients must buy from their own pocket."

Shoayeb Mahmud from Manikganj knows this well. His mother's diabetes medication costs Tk3,600–4,000 a month. His father's medicines cost another Tk1,600. Their child's skin infection has already drained Tk20,000.

"We borrow from relatives for treatment," he said. "Still, we can't recover."

Doctors often prescribe medicines outside the Essential Drug List, even at public hospitals. Those drugs must be purchased privately, at market prices.

"This creates additional pressure," Rumana Huque mentioned. "Even when people go to government facilities, they still end up paying."

Urban patients face a different trap. Public hospitals are overcrowded and under-resourced, forcing people into private clinics.

"There is no prepayment mechanism, no insurance," Dr Huque said. "In urban areas, people depend heavily on private providers. That pushes costs much higher."

Even within cities, prices vary wildly between clinics. Medicines are often sold under brand names rather than generics, creating confusion and inequality.

"There is disparity between urban and rural areas," she said. "But also disparity within cities themselves."

A system stretched thin

According to the World Bank, financial hardship drops sharply when out-of-pocket spending falls below 20%. Bangladesh is nowhere near that threshold. The root problem lies in chronic underinvestment.

Bangladesh allocates around 1% of GDP to health, far below the WHO-recommended 5%. While health budgets have grown nominally, much of the money goes to salaries and routine expenses. A significant portion remains unspent due to weak implementation.

The result is a system where people with means seek treatment abroad — in India, Thailand, or Malaysia — draining foreign currency, while those without means delay care or fall into poverty.

Professor Rumana argued that the pharmaceutical industry and government both have roles to play.

"The pharmaceutical industry has an important role to play. If companies were willing to reduce their profit margins, prices could come down. Many raw materials and components for medicines are imported, and reducing import taxes on these inputs could also help lower costs. At present, the cost of doing business in Bangladesh — across industries, including pharmaceuticals — is very high," she said.

"If the government were to provide targeted incentives to pharmaceutical manufacturers — such as tax relief, support through export processing zones, or other facilities — particularly for life-saving medicines, prices could be brought down to a more affordable level. This would significantly reduce the financial burden on the public."

Until then, households will continue to absorb the shock.

Bangladeshi feed millers have imported corn from the United States for the first time in eight years, citing competitive prices, quality considerations and broader efforts to narrow the bilateral trade gap.

The shipment, carrying 57,855 tonnes of corn, arrived at Chattogram port yesterday, according to a press release from the US Embassy in Dhaka. The last such import from the US was in 2018.

Traders said US corn was priced $3 to $5 per tonne cheaper than corn from Bangladesh's usual suppliers, while meeting quality requirements.

Corn is Bangladesh's second-largest grain crop after rice in terms of acreage and production.

Even so, the country remains heavily dependent on imports to meet feed demand.

The renewed corn imports come amid broader trade engagement between the two countries. The US had earlier reduced its reciprocal tariff rate for Bangladesh to 20 percent from an initial 37 percent after Dhaka agreed to increase imports from the US to help narrow an annual trade gap exceeding $6.2 billion.

Bangladesh has also signed a memorandum of understanding to import 660,000 tonnes of US wheat, of which around 300,000 tonnes have already been received.

LONGER ROUTE BUT LOWER PRICE

According to a United States Department of Agriculture report, Bangladesh imported about 93 percent of its corn from Brazil in the 2024-25 marketing year, followed by 4 percent from Argentina and 2 percent from Pakistan.

Brazilian corn has long been preferred for its price competitiveness and yellowish colour, which feed producers believe improves the appearance of pellet feed, states the report.

Rakibur Rahman Tutul, managing director of corn importer Nahar Agro Group, said the company opted for US corn this year after finding it offered the best balance of price and quality through a bidding process.

He said Brazilian corn was priced at around $250 per tonne, while US suppliers undercut that by $3 to $4 per tonne.

Although shipping from the US takes longer, around 46 days compared with about 30 days from Brazil or Argentina, the company determined it had sufficient inventory to absorb the delay, he added.

Tutul said such decisions depend heavily on supply-chain planning, noting that longer shipping routes are avoided when stock levels are tight.

He also noted that assurances from US agricultural representatives regarding logistical and quality support helped reduce risks.

While the decision also aligned with efforts to narrow Bangladesh's trade deficit with the US, Tutul stressed that cost savings remained the primary consideration.

Sourcing strategies, he said, change from year to year depending on crop quality, regional demand and price competitiveness.

Moshiur Rahman, managing director of Paragon Group, said the company sources raw materials from multiple countries, including Brazil, Argentina and the United States, depending on prevailing prices.

A price difference of $4 to $5 per tonne can translate into savings of $400,000 to $500,000 per shipment, he said. Paragon previously sourced from the US before shifting to Brazil and Argentina when prices there fell, and has now returned to the US as prices became competitive again, he informed.

Rahman said sourcing decisions are reviewed monthly, and shipments may come from multiple origins within the same month. Regardless of supplier interest, he added, the company's priority is securing quality raw materials at the lowest possible price.

US Embassy Dhaka Agricultural Attaché Erin Covert visited the port yesterday to welcome the shipment alongside representatives of Nahar Agro Group, Paragon Group and Nourish Poultry and Hatchery Limited.

An official from United Grain Corporation, a major US grain exporter, said the company was honoured to be part of the first US corn shipment to Bangladesh in eight years and expressed optimism about supplying US grains to the country in the years ahead.