The country's capital market extended its losing streak last week, with share prices sliding sharply as persistent political uncertainty and the continued absence of institutional investors weighed heavily on sentiment, pushing key indices further into negative territory.

The benchmark index, DSEX, of the Dhaka Stock Exchange (DSE) dropped 132 points, or 2.67%, over the week to close at 4,831, reflecting broad-based selling pressure across most trading sessions.

The blue-chip DS30 index also suffered a steep fall, shedding 43 points or 2.28% to settle at 1,859, while the SME-focused DSEMX index declined by 24 points or 2.77% to end at 859.

Out of the traded issues, only 32 advanced, while 335 declined and 22 remained unchanged, underscoring the market's overwhelmingly bearish tone.

According to EBL Securities' weekly market review, the bourse endured persistent downward pressure throughout the week, failing to find any meaningful respite amid a lack of strong catalysts to revive investor confidence.

The brokerage noted that investor anxiety surrounding the unfolding political situation prompted a cautious stance, triggering widespread selling across sessions. As volatility lingered, many investors opted to reduce their exposure in an effort to limit further losses in portfolios already strained by prolonged market weakness.

Market capitalisation also took a hit, declining by around Tk10,500 crore during the week.

Although trading activity remained relatively resilient compared to recent lows, the daily average turnover slipped by 7% week-on-week to Tk387 crore, reflecting reduced participation from both retail and institutional investors.

Large-cap stocks played a significant role in dragging the indices lower. Islami Bank Bangladesh, BRAC Bank, Beximco Pharmaceuticals, Walton and Grameenphone were among the major index heavyweights that exerted downward pressure, as selling intensified in fundamentally strong but sentiment-sensitive stocks.

Market analysts said political uncertainty continued to overshadow trading decisions, keeping large investors on the sidelines. While some optimism emerged following the announcement of the national election schedule and expectations that polls may be held in February, this sentiment was not strong enough to translate into sustained buying interest.

Analysts also pointed to the announced return date of BNP Acting Chairman Tarique Rahman as a development that parts of the market viewed positively.

However, renewed concerns over law and order dampened whatever optimism had emerged. Recent incidents signalling deterioration in security conditions, including an assassination attempt on Inqilab Moncho Spokesperson Osman Hadi, reinforced risk aversion among investors, analysts said, further discouraging fresh inflows into equities.

Sector-wise, all major sectors posted negative returns during the week. The jute sector suffered the steepest decline, followed by paper and life insurance, as selling pressure intensified across cyclical and defensive segments alike.

Despite the overall bearish environment, investors were most active in the textile sector, which accounted for 16.7% of total turnover, followed by pharmaceuticals with 12.8% and engineering with 12.6%.

A handful of stocks managed to post notable gains amid the market slump, with Bangas, Reliance One Mutual Fund, CAPM IBBL Mutual Fund, BD Welding and Union Insurance emerging as top performers. On the flip side, sharp losses were recorded by several companies, including Shyampur Sugar, Zeal Bangla Sugar, AFC Agro, Khan Brothers PP Woven Bag and FAS Finance, reflecting heightened volatility in smaller and weaker stocks.

Passenger movement through the Benapole International Checkpost dropped by a sharp 66 percent year-on-year in the four months to October, causing significant revenue losses for the government.

Some 605,818 passport holders travelled through the checkpost between July and October of the previous fiscal year, which came down to just 202,969 in the same period this fiscal year.

In the first four months of fiscal year 2024-25, some 358,952 people travelled to India from Bangladesh, while 296,866 came from India.

These figures fell to 114,734 and 88,235 respectively in the same period this fiscal year.

This decline has affected both countries, port officials said.

Due to reduced passenger movement, the Indian government lost around Tk 4.2 crore in visa fees, while Bangladesh missed the opportunity to earn around Tk 3.2 crore in travel tax revenue, they said.

Officials said every year around 28 lakh people travel between Bangladesh and India via Benapole for tourism, medical treatment, business, and higher education.

However, following the change in the Bangladesh government on August 5 last year, India began tightening and limiting visas for Bangladeshis, citing security concerns.

Although the overall situation has since normalised, India has not relaxed its visa rules.

Shamim Hossain, director (traffic) of Benapole land port, said, "The number of passport-holding passengers has declined due to visa complications, causing a fall in government revenue."

On December 16, only 1,494 passengers travelled to India through Benapole, while 989 entered Bangladesh, said Benapole Checkpost Police Immigration Officer-in-Charge Sakhowat Hossain.

The Bangladesh Securities and Exchange Commission (BSEC) has approved a 10% stock dividend proposed by Quasem Industries Limited for the year ended 30 June 2025, allowing the company to move ahead with its plan to strengthen paid-up capital through bonus shares.

Quasem Industries disclosed the regulatory approval in a price-sensitive statement filed with the Dhaka Stock Exchange yesterday. Following the approval, the company's board of directors, in a meeting held on 17 December, fixed 7 January 2026 as the record date to determine shareholders' entitlement to the bonus shares.

The board had earlier recommended the 10% stock dividend in October, subject to BSEC consent, as part of its annual financial decisions for FY25.

With the regulator's clearance now in place, shareholders holding the company's shares on the record date will be eligible to receive one bonus share for every ten shares held.

For the year ended 30 June 2025, Quasem Industries reported earnings per share of Tk1.04, up from Tk0.42 in the previous year.

The company's net asset value per share also rose to Tk29.06 from Tk28.33, while net operating cash flow per share declined to Tk0.88 from Tk1.39 year-on-year, reflecting changes in working capital dynamics.

The company's performance showed further improvement in the July–September quarter of FY26, when earnings per share stood at Tk0.32, compared to Tk0.10 in the corresponding quarter of the previous year.

Net operating cash flow per share increased to Tk0.46 from Tk0.23, while net asset value per share edged up to Tk29.39 as of 30 September 2025.

Quasem Industries attributed the higher quarterly earnings to significant cost benefits received from Sunstone LLC, which boosted other income, alongside a reduction in selling and distribution expenses. These factors helped offset lower revenue during the period.

Meanwhile, the company recently rescheduled its 44th annual general meeting from 18 December to 24 December 2025 due to unavoidable circumstances.

Quasem Industries' shares closed 0.73% lower at Tk40.90 yesterday at the Dhaka Stock Exchange.

Stocks at the Dhaka bourse extended their losing streak for a third consecutive session today (17 December), as investor participation remained shaky ahead of the national election scheduled for February next year.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), has shed a total of 110 points over the last three trading days, including a 36-point drop today, bringing the index down to 4,853.

Amid heavy sell-offs, prices of 299 stocks, or 79% of the traded issues, declined, while 48 advanced and 43 remained unchanged. Market turnover fell 9% to Tk375.78 crore, reflecting subdued investor activity.

Market insiders and analysts attribute the slump to growing political uncertainty surrounding the upcoming election. While institutional investors are largely adopting a "wait-and-see" approach, some are reportedly reshuffling portfolios into specific sectors with better long-term prospects.

They added that small investors, who are already in the red following the previous downturn, remain largely inactive as their portfolios have been significantly eroded.

According to the DSE trading data, the market witnessed an upward momentum till 12.30pm; however, a surge in sell-offs during the latter half of the session pushed the indices into negative territory.

Among the other indices, the DSE Shariah Index fell 7 points to 1,008, while the DS30, the blue-chip index, declined by 7.97 points to 1,869.

Progati Life Insurance topped the gainers' list, rising 10% to Tk44 per share, followed by Dominage Steel, which gained 5.77% to Tk29.3, and Renwick Jajneswar, up 5.39% to Tk570.

On the losing side, Prime Finance led the decliners, shedding 8.33% to Tk1.1 per share. It was followed by Khan Brothers PP Woven Bags, down 8.06% to Tk47.9, and BD Thai Foods, which fell 7.48% to Tk13.6.

Sammilito Islami Bank Chairman Dr Mohammad Ayub Miah has said the funds of the bank's customers are safe, as the government is committed to securing all deposits.

"There is no reason to worry. The government owns this bank and will secure all deposits," he said after the first board meeting today (17 December).

He stated that the bank aims to start operations soon, focusing on the SME and CSME sectors.

Ayub Miah said, "Today's meeting also approved our logo and the slogan: 'A prosperous future with combined strength.'"

He assured customers saying, "With a capital of Tk35,000 crore, including Tk20,000 crore already provided, we are fully prepared financially. Deposit insurance payments will also be made this month. Developing unified software and IT systems across the merged banks will take some time, but operations will start soon."

At the meeting, Bangladesh Bank Governor Ahsan H Mansur said the bank will launch operations quickly to allow regular transactions.

He emphasised strict action against dishonest officials responsible for previous losses and fair treatment for honest staff.

A unified salary structure will also be introduced for all employees, he added.

Seven directors, including the chairman, met with the finance secretary after the board meeting to update him on progress.

A notification for appointing the new managing director has been issued, and the appointment is expected within this month.

The Sammilito Islami Bank PLC has been formed through the merger of five Shariah-based banks.

Genex Infosys PLC, a listed information technology solutions provider, reported a 17% year-on-year growth in consolidated net profit for the July–September quarter of the current fiscal year, supported by higher operating efficiency and improved cash flows.

According to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (17 December), the company's consolidated earnings per share (EPS) rose to Tk0.81 in the July–September 2025 quarter, compared to Tk0.69 in the same period a year earlier.

During the quarter, consolidated net operating cash flow per share (NOCFPS) jumped to Tk1.67 from Tk0.91, while consolidated net asset value (NAV) per share increased to Tk23.14 as of 30 September 2025, compared to Tk22.11 at the end of June.

Following the earnings announcement, Genex Infosys shares rose 3.72% during the trading session to close at Tk25.10 on the DSE, reflecting positive investor response to the improved quarterly performance.

Earlier this month, the company recommended a 1% cash dividend for general shareholders for the 2024–25 fiscal year, as disclosed after a board meeting held on 4 December.

Out of the company's total 12.04 crore shares, general shareholders hold 8.42 crore shares, requiring a dividend payout of approximately Tk84 lakh.

The annual general meeting has been scheduled for 30 December, with the record date set for 21 December, to approve the dividend and audited financial statements.

Genex Infosys currently has a market capitalisation of around Tk302 crore, with its shares trading at a price-to-earnings ratio of 9.58 based on FY25 financials.

The company has remained in the spotlight since September, when the securities regulator imposed fines on its board and a subsidiary in a separate share price manipulation case, an issue that continues to weigh on long-term investor sentiment.

Bangladesh Bank Governor Ahsan H Mansur has said depositors of five troubled Islamic banks will certainly receive their money soon, although procedural and technical challenges mean the process will take some time.

Speaking to journalists at the Secretariat yesterday, the governor said preparations were under way to credit depositors' funds directly into their bank accounts. "It will take a little time due to some procedural issues, but we are planning to deposit the money directly into customers' accounts so that everyone receives it at the same time," he said.

Mansur confirmed that the government has already released Tk20,000 crore from the national budget for the newly formed Sammilito Islami Bank, created through the merger of the five troubled Islamic banks. He said the priority is to ensure a smooth and orderly payout without forcing depositors to queue at bank branches.

In an exclusive interview with The Business Standard during a two-day awareness and promotional programme on Bangla QR codes in Cox's Bazar, which ended on Monday, the governor cautioned that technical work was still required. "All five banks' IT systems need to be fixed. This process may take another 10 to 15 days," he said.

Explaining the payout mechanism, Mansur said every depositor would be required to open a new account with the merged bank. Around 76 lakh customers will be brought under the new system, after which their funds will be credited automatically. "We do not want customers to come and stand in lines to withdraw cash," he added.

'Inflation impacted by rice imports'

Shifting focus to the broader economy, Governor Mansur said he believes inflation "would have remained below 7%" if rice had been imported from India on time.

He directly attributed a significant spike in the cost of living to policy failures, stating, "Inflation has increased by 1.4 percentage points solely due to the failure to import rice on time. There is a policy weakness behind the 18% increase in the price of rice. We isolate ourselves from the global market."

The governor stressed that the two main responsibilities of the Bangladesh Bank are controlling inflation and restoring discipline in the banking sector. He noted that while the micro-economic situation, including the exchange rate, reserve position, and inflation, remains manageable, improving the country's overall economic condition depends on the political environment and the "goodwill of politicians."

On reserve management, the governor said relying on loans from the IMF and the World Bank is not a sustainable solution, as those funds would ultimately be used for debt repayment. "We must build reserves using dollars generated from our own economy. That is why we are buying dollars from the market," he said.

Bangladesh Bank purchased $67 million from seven commercial banks today as part of its ongoing intervention in the foreign exchange market.

The dollars were bought at an exchange rate of Tk 122.30 per US dollar, which was also set as the cut-off rate for the transaction, according to central bank data.

With the latest purchase, the central bank's total dollar acquisition has reached $691.50 million so far in December 2025.

Cumulatively, Bangladesh Bank has bought $2.87 billion in the current fiscal year to date.

Industry insiders said the continued dollar purchases indicate a relatively comfortable foreign exchange position, driven by improved inflows from exports and remittances.

The move is also helping the central bank manage excess liquidity in the interbank foreign exchange market.

Bangladesh Bank has been following a market-based exchange rate regime, intervening periodically to smooth volatility and maintain stability in the taka-dollar market.

Over the past three years, up to the fiscal year 2024-25, BB sold more than $25 billion from its foreign exchange reserves, largely to cover import bills for fuel, fertiliser, and food.

After the fall of the Awami League-led government in August last year during a mass uprising, the central bank suspended dollar support for government imports due to low foreign currency reserves.

The US jobless rate picked up again in November, hovering at its highest level in four years, official data showed Tuesday in a report underscoring a labor market cooldown in the world's biggest economy.

The report, delayed by a lengthy government shutdown, also indicated that the US economy lost 105,000 jobs in October.

Hiring picked up again in November with a gain of 64,000 jobs, but this was still a slower pace than before, according to the Labor Department figures.

"Employment rose in health care and construction in November, while (the) federal government continued to lose jobs," the department said.

There was a sharp decline of 162,000 government jobs in October, "as some federal employees who accepted a deferred resignation offer came off federal payrolls," the report added.

In November, unemployment climbed to 4.6 percent from 4.4 percent in September. It is the highest rate since September 2021.

There was no October jobless rate as officials were unable to retroactively collect data after the shutdown, which lasted until November 12.

The figures will be closely scrutinized for their potential bearing on US interest rates.

The Federal Reserve has cut rates three times in a row this year as employment weakened, but hinted that the bar is likely higher for further cuts.

A rapidly deteriorating jobs market could nudge the central bank to lower rates more to boost the economy, despite some policymakers' worries that higher inflation could become persistent.

While President Donald Trump's tariffs have not sparked a broad inflation surge, firms say they have caused business costs to grow and fueled uncertainty.

Trump's chief economic adviser Kevin Hassett told reporters Tuesday that government workers who took buyouts "are staying in the labor force and looking for work."

He said he expects "that they'll be very successful with it."

Elizabeth Warren, the top Democrat on the Senate Banking Committee, slammed Trump's "chaotic tariffs" and economic policies, saying they were "hammering the labor market."

"With wages struggling to keep up with higher costs, it's no wonder Americans are more anxious about the economy than ever," she said.

In November, average hourly earnings climbed 0.1 percent to $36.86, while wages rose 3.5 percent on an annual basis. But both numbers represent a slowdown from the prior month.

In another sign that the economy appears to be cooling, a separate report released Tuesday by the Commerce Department said that retail sales were flat in October at $732.6 billion.

This came on the back of sales declines at motor vehicle and parts dealers, and gasoline stations. Consumers also pulled back at restaurants and bars.

"Americans are feeling squeezed," said Heather Long, chief economist at the Navy Federal Credit Union, adding that consumers were shifting to spending more on necessities.

On employment, Long said: "The US economy is in a jobs recession. The nation has added a mere 100,000 in the past six months."

She said businesses were adjusting to tariffs, uncertain conditions and AI, and that most of the new jobs were in health care which is regularly hiring as the American population ages.

Economist Samuel Tombs of Pantheon Macroeconomics said much of the overall drag came from a slump in federal payrolls. The government shutdown likely also exacerbated unemployment figures.

But a growing proportion of people are jobless for longer periods.

The number of individuals unemployed for 27 weeks or more has risen by 15.5 percent over the past year, said Nicole Bachaud, labor economist at ZipRecruiter.

For now, economists say the jobs market is likely not weakening enough to trigger a January rate cut.

"While net hiring remains soft and narrowly based, it is not softening further and in fact is moderately firmer than the weak readings in the summer," said Nationwide chief economist Kathy Bostjancic.

She expected the Fed can continue holding rates steady for a few months.

Bangladesh saved an estimated $3.3 billion in energy costs in a single year by using electricity and fuel more efficiently across homes, factories and the power system, according to a report.

Besides, the savings reflect reduced fossil fuel consumption and avoided energy imports equivalent to 7 million tonnes of oil in fiscal year 2023-24, said the report published by the Institute for Energy Economics and Financial Analysis (IEEFA) yesterday.

In that period, the country faced higher global fuel prices, spiked rates for liquefied natural gas (LNG) deliveries and a severe dollar crisis.

The report said the savings were achieved through efficiency improvements across major consuming sectors, allowing the economy to deliver the same level of output while using less fuel.

In the report, IEEFA, a United States-based nonprofit organisation that promotes the transition to cleaner energy, said that the country's effort to improve energy efficiency by adopting a national master plan in 2016 is now paying off.

The Energy Efficiency and Conservation Master Plan set a target to cut energy intensity by 15 percent by 2021 and 20 percent by 2030.

From fiscal year 2014-15 to 2023-24, energy efficiency rose by 13.64 percent, according to the report, titled "Bangladesh's Energy Efficiency Goals Within Reach".

Although the progress remained limited until FY2020-21, energy efficiency gained momentum thereafter as global fuel volatility and domestic supply disruptions made it a priority, according to the report.

"The regulatory framework and awareness created a favourable ecosystem to enhance energy efficiency amid supply disruptions and rising tariffs, with further gains possible," the report mentioned.

"Bangladesh's efficiency gains have put it on track to meet its targets under the masterplan and its updated climate commitments, potentially a year ahead of schedule," it added.

According to the report, widespread adoption of energy-efficient appliances in households, particularly LED lighting, fans and air conditioners, helped reduce electricity demand. This eventually reduced the need for fuel-based power generation.

Industry, the country's largest energy consumer, also contributed through improved boilers, reduced leakages, waste heat recovery from captive generators and adoption of technologies such as vertical roller mills and efficient furnaces, said the report.

"Yet, the industry still offers significant untapped energy-efficiency opportunities such as using more efficient motors, a gradual shift towards electric boilers from gas boilers, and upgrades in captive power machineries," it added.

The report mentioned a previous IEEFA study, saying almost half of the country's captive power generators do not operate efficient generators and fail to utilise waste heat in industrial processes, which could save Bangladesh up to 50.18 billion cubic feet of LNG imports a year.

The report recommended setting minimum energy performance standards and labelling for household appliances to guide consumers towards the most efficient options.

It also urged enforcement of the national building code, which promotes passive design and energy-efficiency features in new buildings to reduce cooling demand.

Additional savings came from the commercial sector and reductions in transmission and distribution losses across the power system.

While the commercial sector uses less energy than households or industry, its reliance on air conditioning makes efficiency gains critical as rising temperatures are expected to increase cooling demand.

The report noted that stronger enforcement of appliance standards and labelling is needed to secure real savings.

It also warned that recent rises in import duties could undermine efficiency gains by making efficient appliances more expensive.

Customs duties on key components of LED lights were raised sharply in FY2025-26, potentially pushing price-sensitive consumers towards cheaper, lower-quality products.

Similarly, higher minimum import duties on inverter-based compressors for energy-efficient air conditioners and refrigerators could also slow adoption of efficient cooling technologies, it said.

IEEFA clarified that the $3.3 billion figure represents avoided fuel import costs rather than direct budgetary savings and does not appear as a line item in government accounts.

The report concluded that without stronger enforcement of efficiency standards and faster modernisation of industry and buildings, the country risks locking itself into higher fuel costs despite recent gains.

"For Bangladesh, energy efficiency is a strategic necessity to curb unchecked energy consumption and strengthen the resilience of its energy system. Achieving these gains will require a coordinated effort among regulatory authorities, industries, financial institutions, and technology providers," it said.

The country's largest employer, agriculture, is stuck at low value-addition, presenting a litmus test for the nation's diversification push for future growth ahead of its graduation from the least developed country club next year.

In number, the farming sector in Bangladesh employs 44 percent of the workforce, while 75 percent of the produce remains unprocessed, according to an economic review.

It says on top of farming, the government should focus on seven other sectors, such as readymade garment, automotive industry, electronics, light engineering, IT-based freelancing, semiconductor industry, and human capital.

The authorities should adopt an approach emphasising fixing long-standing macroeconomic wounds and laying the groundwork for the future, according to the review by UCB Asset Management released yesterday.

According to the report, ready-made garment is the backbone of Bangladesh's economy, but it must move into man-made fibres and higher-value segments.

Besides, the country risks being trapped in low-value labour unless it climbs the ladder to semiconductor and IT freelancing.

The asset manager argues that the way forward lies not in chasing headline numbers, but in rebuilding institutions, restoring confidence and strategically diversifying the productive base of the economy.

Opportunities in automobiles, electronics assembly and light engineering are highlighted as realistic next steps, building on existing capabilities and domestic demand.

These sectors, if supported by targeted incentives, quality certification systems and skills development, could integrate Bangladesh more deeply into regional and global supply chains, the report said.

In the automotive industry, the government can consider strengthening backward linkages and developing supply chains for electric vehicles by adopting supporting incentives.

In powering an electronics assembly boom, the country can take lessons from Vietnam's long-term and predictable tax policy in supporting industry, research and development, and human capital development.

There is immense potential in the light engineering sector, but it needs industry-focused vocational training and improved backward linkages.

Apart from these, the report described remittances as the "oxygen" of the economy for its contribution to external stability. Expanding skill-linked overseas employment and offering more attractive, transparent investment options for expatriates are seen as ways to sustain and deepen this vital flow while strengthening foreign exchange buffers.

Underlying all these sectoral strategies is what the report calls a virtuous institutional cycle: building people to build institutions. Investing in education, healthcare and skills is presented not just as a social priority, but as the foundation for stronger governance, higher productivity and inclusive growth.

"Fifty-four years of independence, the country has come a long way and yet the real question remains -- have we, as a nation, done justice to the immense potential this country had to offer?" said S M Rashedul Hasan, managing director and CEO of the asset management company.

"The answer is mostly 'No'," he added.

Only by empowering citizens to demand and uphold accountable institutions, the report says, can Bangladesh escape extractive systems and realise its full potential.

The Central Depository Bangladesh Ltd (CDBL) has approved a 22 percent cash dividend for the 2024–25 fiscal year for its shareholders.

The declaration was made today at the company's annual general meeting held at the DSE building in Dhaka.

The meeting was presided over by AKM Habibur Rahman, director of CDBL, while other directors — Naser Ezaz Bijoy, Md Shakil Rizvi, and Niranjan Chandra Debnath — were also present, along with Md Abdul Mutaleb, managing director and CEO of the Central Depository Bangladesh.

Last year, the company's profits grew by 8 percent year-on-year to Tk 65 crore.

Meanwhile, its earnings per share stood at Tk 3.25, up from Tk 2.99 in the previous fiscal year.

CDBL's net asset value per share was Tk 42.18 at the end of the 2024–25 fiscal year, compared to Tk 40.31 at the end of the previous year.

The interim government has reported that immovable and movable assets worth Tk 661.46 million belonging to different industrial groups, both in Bangladesh and abroad, have been “attached or blocked” as part of efforts to recover laundered funds.

A media statement issued by the Finance Ministry on Wednesday said, of this, Tk 556.38 billion is held domestically, while Tk 105.08 billion is abroad. The release did not specify which countries or individuals’ assets have been frozen.

Finance Advisor Salehuddin Ahmed led the National Coordination Committee in its 30th meeting on Wednesday to formulate and implement policies and directives to prevent money laundering and terror financing.

The meeting decided to update certain provisions of the existing Money Laundering Prevention Act to make recovery of assets abroad “more efficient and effective”.

Progress on 11 priority cases, for which joint investigation teams were formed, was discussed in detail as well, according to the statement.

It said 104 cases have already been filed in these priority cases, 14 chargesheets submitted, and four cases adjudicated.

Under the act, documentation has been sent to 21 countries to facilitate recovery. Officials were instructed to expedite filing of chargesheets, forward documents to relevant countries, and take effective measures for swift case resolution.

Bangladesh Bank Governor Ahsan H Mansur said, “It normally takes four to five years to repatriate money from abroad; it is not instant. If we are lucky, the case of former land minister Saifuzzaman Chowdhury Javed in London may yield some funds. Islamic Bank and UCB have filed claims there, which could result in partial recovery.”

He, however, cautioned that the timing of any repatriation is “uncertain”, potentially arriving in February, April, June, July, or August.

Earlier, the UK’s National Crime Agency had reported freezing assets of Saifuzzaman based on information provided by the Anti-Corruption Commission.

The Finance Division under the finance ministry has launched its third Public Financial Management (PFM) Reform Strategy, a five-year plan designed to shift fiscal governance from system-based reforms to outcome-driven accountability and service delivery.

For the first time, the plan mainstreams climate-smart PFM, gender-responsive budgeting, and sector-specific reforms in health, education, and social protection, reads a press statement issued by the division today.

The strategy, unveiled by Finance Adviser Salehuddin Ahmed, comes as the country grapples with rising public expenditure, climate pressures, and global economic volatility.

Speaking at the ceremony, he stressed that the framework is intended to strengthen transparency and ensure citizens receive tangible benefits from public spending.

The Finance Division states that the 2025-2030 roadmap sets out 15 reform pillars, ranging from fiscal sustainability and debt management to procurement, oversight, and digital transformation.

Finance Secretary Md Khairuzzaman Mozumder described the strategy as the product of "sustained and collaborative efforts" across ministries, constitutional bodies, and development partners.

Comptroller and Auditor General Md Nurul Islam underscored the role of independent audit in ensuring fiscal discipline and citizen‑focused services.

Jean Pesme, World Bank's Division Director for Bangladesh and Bhutan, highlighted progress in reforms such as iBAS++ and pension digitalisation, which have enhanced oversight and credibility.

Yet, he cautioned that institutional capacity, fiscal management, and public debt remain pressing challenges.

Bangladesh's tax‑to‑GDP ratio is among the lowest in South Asia, while liabilities from state‑owned enterprises and contingent risks continue to expand, the Finance Division noted.

The new framework emphasises resilience through improved macro‑fiscal forecasting, integrated debt management, and transparent reporting of fiscal risks, it added.

The division expects the PFM Reform Strategy to position public finance as a cornerstone of economic governance, equity, and public trust as Bangladesh advances toward upper‑middle‑income status.

Its success will depend on sustained political commitment, stronger inter‑agency coordination, and investment in public sector capacity, it added.

On a chilly December noon in Datinakhali, a small village in Shyamnagar, Satkhira, the sun hung overhead, leaving a clear imprint of light on the wooden walkways and plastic crates packed with thousands of crabs. The air — cool and dry despite the bright midday sun — smelled of salt, fish and earth.

Inside the cafeteria, workers paused for lunch, metal plates in hand, quiet conversations marking the break. Soon, work resumed outside. In a familiar, practiced rhythm, they returned to tending the crabs that would soon leave this quiet edge of Bangladesh for distant markets abroad.

Beauty Akter, a 33-year-old worker at Aquamax Seafood, did not know which country the crabs she handled would end up in, or how they would be cooked. As she spoke, she adjusted a stack of plastic crates, a task she has been doing for nearly a decade in the soft-shell crab industry.

"I've worked in three places, but I stayed here the longest," she said. "My son works with me. He earns about Tk9,500 a month, and I earn Tk8,000. Without this job, life would have been quite difficult; my husband remarried 10 or 12 years ago, and I've been supporting myself since then."

Beauty's workday is long and unrelenting. "I come at 7 am and leave at 7pm. Twelve hours daily. I do everything — feeding, helping cut fish, checking crabs, whatever is needed."

She carried a small wooden scoop, carefully moving crabs that had just moulted. "Many of us would have been unemployed without this work. Just like garment factories benefit Dhaka, crab farming benefits us here."

For thousands like Beauty, soft-shell crab farming became not only a job but also a way to survive. Every day, men and women rise before the sun to tend to thousands of crabs, carefully watching over creatures that will soon travel thousands of miles to plates in Japan, Europe and the US.

The work is demanding, the hours long, but it offers something rare in these remote villages: a steady income and a better lifestyle. Families rely on this to feed children, support ageing parents, and build a life in a place where opportunities are scarce. The farms, with their maze of wooden walkways, stacked crates and ponds, are alive with human effort.

Not far from Beauty, Abdus Salam, a 25-year-old worker at another farm, was checking around 4,500 boxes for moulting crabs.

"I've been in this profession for the last four years," he said. "I only completed primary schooling, then couldn't continue due to economic hardship. My daily tasks include checking boxes for dead or moulting crabs, preparing new crabs for boxes, cleaning leftover food, and feeding small pieces of tilapia fish to the crabs. One worker feeds 4,000–5,000 two or three days after.

"Before this, I was involved in excavation work and construction. This job seemed better," he added.

The crabs themselves are sourced primarily from the Sundarbans and nearby rivers.

Shawon Hossain, a 20-year-old collector and employee of Japan Fast Trade, a Japan-Bangladesh joint private investment farm operational since 2017 and one of the biggest in the area, explained the supply chain.

Fishermen catch crabs and sell them to local intermediaries or wholesalers. "We buy from the wholesalers, who supply them in boxes of about 30-40 kg. Prices depend on size and quality. Crabs suitable for moulting fetch higher prices. Most soft-shell crabs go to Japan," he explained.

Shawon also sells crabs to local farmers, making him a vital link in the chain between the mangroves and the processing factories.

Supervising the moulting process was Mohammad Iliyas Hossain of Marine Marvel Seafood, 29, from Munshiganj, Shyamnagar, with nine years' experience.

"We keep 40-50g of even bigger crabs in separate boxes for 20–25 days until they moult. After moulting, we harvest them as soft-shell crabs. During peak season, the farm has 140,000 boxes; off-season, around 70,000–75,000. Feeding happens every three days with properly cut tilapia fish," he explained. "Boxes are checked every three to four hours day and night. Dead crabs are removed immediately. Risks exist, but with proper management, the business is profitable."

The economic figures are precise. Hard-shell crabs are bought at Tk500–700 per kg, soft-shell crabs are sold at Tk900–1,000 per kg.

"Feed and labour cost around Tk200 per kg. So the profit stands around Tk200–250 per kg. Daily production is about 200 kg at full operation. Around 100 people, mostly young locals, are employed here," Iliyas added.

Shahidul Islam, manager at Japan Fast Trade, painted a more detailed picture. "We produce and export 15–20 tonnes of soft-shell crabs every month. It's completely export-oriented; we don't sell even a kilogram locally. Around 400 employees, mostly from this area, work here."

He outlined the main challenges, "The Forest Department bans the catching of small crabs for three to six months each year. Even then, salaries still need to be paid. Cyclones or floods can disrupt operations, though crabs generally survive well in brackish water. We also keep the process chemical-free."

The company also has an R&D section focused on building a crab hatchery, since the Sundarbans and nearby rivers remain the only main sources of crabs. Yet, despite these efforts, the future of hatchery production feels uncertain.

Md Tawhid Hasan, Senior Upazila Fisheries Officer of Shyamnagar, offered an administrative perspective. "Commercial crab farming began in Burigoalini and Munshiganj areas of Shyamnagar around 2015. Women play a significant role, with a per-capita daily income of around Tk500. We have five processing factories exporting almost all soft-shell crabs to Europe."

However, he pointed out a major challenge: sourcing crabs from nature, as no commercial hatchery exists yet. "Although two trial hatcheries have been launched in Shyamnagar, the output has not been satisfactory," he explained.

"There are about 1,200 farms covering roughly 220 hectares. Total annual production is around 17,000 tonnes, of which 15,000 tonnes are soft-shell crabs. Almost 100% is exported. This industry holds huge potential, especially now when we need export diversification. We are exploring ways to build sustainable hatcheries, because nature cannot provide the same treasure indefinitely," Tawhid added.

A businessman who has been working in Shyamnagar since 2017, speaking on condition of anonymity, explained that their main market lies far beyond Bangladesh, in the US. Yet the country can currently supply only about 5-10% of total demand.

In contrast, Myanmar, Thailand, Indonesia and the Philippines have emerged as major producers, backed by more established systems. Bangladesh, he said, still struggles to scale up, particularly because hatchery production is difficult and depends heavily on access to seawater, which is not always reliable.

Despite these challenges, there have been attempts to push the sector forward. Researchers from UNDP and Tokyo University have provided technical assistance to improve hatchery practices. Outside the hatchery system, he sees few serious social or legal problems. His biggest worry is reputational: unlicensed or informal exports, he warned, could damage Bangladesh's standing in international markets at a time when the industry is still trying to prove itself.

Environmental pressures and sustainability challenges are also evident. A study titled 'Assessment of Soft-Shell Mud Crab (Scylla olivacea) Farming Trend in the Southwest Coastal Region of Bangladesh', published in 2025, highlights that the southwest region demands approximately 5.55 million seed crabs per cycle, entirely dependent on wild stocks.

Daily harvesting per person has dropped from 10.35 kg to 4.38 kg over the last decade. Plastic cage usage has decreased from 99% to 67%, while farm mortality has increased by more than 8% due to low-quality seed crabs. Consequently, farmers prefer small crabs, 30–60g, for faster moulting.

"The unplanned expansion of soft-shell crab farming encroaches on agricultural land, increasing soil and freshwater salinity," Tawhid noted. Hatchery development and formulated feed are crucial for sustainable growth. The rising demand for tilapia for feed also affects local nutrition, as nearly all the supply is now diverted to crab farms.

Ford CEO Jim Farley walked through Ford's Michigan design studio Monday afternoon, reflecting on how he was about to wipe out thousands of work hours on electric vehicles that he and his team had hoped would revolutionize the American auto industry.

Shortly after, his company announced it would kill several of those battery-powered models and take a $19.5 billion writedown on EV-related assets. It marked the industry's biggest electric-vehicle retreat since US President Donald Trump's sweeping auto-policy changes iced already cooling EV demand.

Farley had spent years telling staff and investors that catching up to Tesla and China's leading EV makers amounted to an existential struggle. Now – after losing about $13 billion on EVs since 2023 – Farley says the path to survival lies in ditching these unprofitable models.

"We can't allocate money for things that will not make money," he told Reuters on Monday. "As much as I love those products, the customers in the US were not going to pay for them. And that was the end of that."

Farley's angst reflects the broader conundrum facing auto executives in the wake of Trump-administration policies that stripped the industry of EV subsidies and eased restrictions on tailpipe pollution.

Most automakers now can't sell EVs in the US profitably or in volume – but must sell them in China, Europe and other markets to appease regulators and compete with Chinese automakers expanding globally.

That's left Ford and other automakers with the challenge of tailoring vastly different vehicle lineups for different regions.

The approach layers on extra expenses the industry thought it had left behind in recent decades through globalization – making essentially the same car, with common supply chains, to sell worldwide. Fifteen years ago, then-CEO Alan Mulally called the strategy 'One Ford.'

Now Farley needs many Fords. His company and others have been turning to partnerships to absorb the extra costs of catering to different global markets. Renault and Ford earlier this month announced they would partner to build affordable EVs for Europe.

Following the partnership announcement, Ford said Monday it won't build the electric commercial van it initially planned for that market. Ford has also been seeking a Chinese partner to provide EV platform technologies, Reuters has reported.

On EVs, Farley hopes to thread the needle by killing most EV models but preserving a $30,000 midsize electric truck due out in 2027, which a specialized skunkworks team in California has engineered to take on EV powerhouses Tesla and China's BYD.

"As a global company competing against the Chinese and others, we do not have time," Farley said.

Michael Dunne, a consultant and former General Motors executive who spent years in China, said US automakers have little choice but to balance raking in US profits from gas-powered trucks while competing overseas with Chinese and other EV makers.

"EVs are not going to go away," Dunne said. "So are we going to compete globally or are we just going to stay at home?"

Government support drives electric cars

US electric-vehicle sales have dropped sharply since the 30 September expiration of a $7,500-per-car consumer tax credit, killed in Trump-supported legislation.

That and other administration policies have cemented America's status as an EV laggard relative to the world's two other largest car markets. In China, EVs and plug-in hybrids account for roughly half of sales; in Europe, they comprise around 25%. US sales sank to around 5% after Trump policies took effect.

Ford's writedown reflects "a broader industry reckoning" that EV economics still don't work without government support, said Stephanie Valdez Streaty, Cox Automotive's director of industry insights.

Other automakers are grappling with those brutal economics.

GM in October recorded a $1.6 billion charge as it scaled back EV plans and warned more charges would follow. It is also retooling EV factories into gasoline-vehicle production hubs. Citigroup analysts said they expect GM's charges ultimately to be less than Ford's. GM has passed Ford in EV sales, although analysts estimate the company continues to lose billions on them.

GM had dismissed gas-electric hybrids as a waste of capital while it leaned into a lineup of about a dozen EVs for US customers, which had started to gain sales traction just before Trump policies took hold. Now some of GM's biggest US competitors, Ford and Toyota, are leaning heavily into hybrids and seeing sales grow rapidly as consumers turn away from fully electric vehicles.

As Ford dropped most EV models, it nonetheless vowed that half its global sales volume by 2030 would consist of EVs, hybrids or so-called "extended-range" electric models, in which a small gasoline engine is used to recharge the large battery. Those models total 17% today. If current consumer trends hold, the vast majority of those vehicles will be hybrids with no charging plug, which vastly outsell plug-ins.

Hybrids already account for nearly half of all US sales for Toyota, which in recent years took heavy criticism for sticking with hybrids over EVs. Elliot Johnson, chief investment officer at Evolve ETFs, which holds Ford shares, cheered the Detroit automaker's move to follow Toyota's lead.

"Hybrids are the future for legacy automakers," Johnson said, offering automakers an easier path to transition existing customers to electrified models without charging hassles.

Stellantis is battling to regain US market share by focusing on hybrids and prioritizing sales of fleet vehicles. Volkswagen carved out its standalone EV company Scout to tackle the electric market while leaning on partners Rivian and Chinese EV maker Xpeng to develop software.

Representatives for Stellantis and Volkswagen declined to comment. A GM spokesman pointed to its previously disclosed plans to offer plug-in hybrids. A White House spokesperson didn't respond to requests for comment.

When asked what factors contributed most to the massive move, from waning consumer interest in EVs to Trump's policy shifts, Farley said it was difficult to give specific weight to any of them. "It's not one thing. It's actually a combination of all of them."

While the EV market has been tough for a while, Farley said pressure has increased recently to take action.

"Over the last several months," he said, "it became really clear to the team. We've got to make a change."

Bangladesh Bank has issued a new set of guidelines regarding the exchange of damaged, torn, or defective currency notes.

Under the new policy, customers will receive the full face value of a note if more than 90 percent of it is intact.

Any branch of any bank in the country is now mandated to provide this exchange service. The move comes as the central bank recently ceased its direct note-exchange services, shifting the responsibility to commercial bank branches to ensure public convenience.

Customers will receive the full exchange value immediately from any bank branch.

If less than 90 percent is found intact, the exchange value will not be paid instantly. Customers must submit an application through the bank branch. The central bank will review the claim and decide on the refund amount within a maximum of 8 weeks.

Burnt Notes: Commercial banks are not authorized to process burnt notes. Customers must apply directly to any office of Bangladesh Bank for a decision after a thorough verification.

Dirty Notes: Extremely soiled or dirty notes are classified as “Claimable” and will follow the application process rather than instant refund.

Mandatory Service for All Bank Branches: The central bank has warned that every branch of every bank must provide services for non-reissuable, torn, or defective notes.

Each branch must display a visible notice stating that “Exchange services for torn/defective and claimable notes are provided here.”

Bangladesh Bank stated that disciplinary action will be taken against any bank branch that shows reluctance or refuses to provide this service.

The new guidelines, which follow the “Note Refund Regulations” issued recently, categorize currency into five types, such as reissuable- fit for circulation, non-reissuable- unfit for further circulation but exchangeable, mutilated or defective-torn or damaged, claimable-notes with 90 percent or less remaining or excessively soiled, burnt notes-specifically handled by the central bank.

Warning Against Fraud: The circular also included a stern warning against fraudulent activities. If a customer attempts to exchange counterfeit notes or a note created by pasting parts of different notes together, legal action will be taken against them in accordance with existing laws.

The high migration costs, ranging from Tk4 lakh to Tk10 lakh in labour intensive Middle Eastern and East Asian destinations, remain unchanged during the 16-month tenure of the interim government like the previous regime, despite a steady level of overseas job placement and a boost in remittance inflows.

As illegal visa trading, dominance of middlemen and recruiting agency syndicates, and weak upskilling initiatives have remained largely unaddressed over the past one and a half years, the migration cost still three to four times higher than the government-fixed rate for low-skilled workers, who are around 80% of the total outbound workers, according to migration experts.

Citing that Bangladesh is facing a deep and complex crisis in overseas employment due to entrenched broker syndicates, document forgery and systemic failures, Chief Adviser Professor Muhammad Yunus yesterday put emphasis on building a broker- and fraudulence-free system in sending workers abroad.

While addressing a function at the Osmani Memorial Auditorium in Dhaka marking the International Migrants Day and National Expatriates Day-2025, the CA said, "Despite sincere efforts by the government, the scale of results we should have achieved has not been reached. Many initiatives appear impressive on the surface, which are important too, but the government has so far been unable to penetrate the core of the broker-dominated system".

Around 10.71 lakh Bangladeshis have been employed abroad until 15 December this year, compared to 10.11 lakh last year, according to data from the Bureau of Manpower, Employment and Training (BMET).

However, more than 66 percent of overseas employment was in Saudi Arabia, reflecting continued single-market dependency based on low-skilled migration. Efforts to explore new markets were largely absent, except for initiatives to promote skilled migration to Japan.

There was also no visible progress in reopening three major Middle Eastern markets – Oman, the UAE, and Bahrain – which were closed during the Sheikh Hasina regime due to corruption, mismanagement, and worker-related misconduct.

Although talks are ongoing with Malaysia to reopen its labour market, the resurfacing of recruiting agency syndicates remains a concern, as destination countries have reportedly imposed some "unfair conditions," according to sector insiders.

"Bangladesh's labour migration sector is an extremely complex and multi-layered process, involving destination countries, institutions and markets simultaneously. Despite this complexity, Bangladesh's biggest problem is that the sector has never been brought under a long-term planning framework. As a result, problems have accumulated over the years and have now turned into a structural crisis," Dr Tasneem Siddiqui, founding chair of the Refugee and Migratory Movements Research Unit (RMMRU), told TBS.

"On multiple occasions, proposals were made to declare a 'migration decade', under which reforms could be implemented in a planned manner by setting long-term, medium-term and short-term goals. But neither the current government nor any previous government showed interest in implementing this proposal," she added.

However, the Expatriates' Welfare and Overseas Employment Ministry has identified 14 notable activities during the period, including the first-ever labour agreement with Saudi Arabia to ensure workers' rights and promote skilled migration, digitalisation of the migration process through an overseas employment platform, signing a number of MoUs with Japanese employers to recruit one lakh workers over the next five years, issuing immigration clearance cards from 21 districts, and opening two lounges for expatriates and their family members at Dhaka airport.

The press wing of the Chief Adviser shared these activities on 7 December, along with some policy changes and the formation of a task force for the long-term development of the sector.

Tasneem Siddiqui identified the interim government's initiative to recognise expatriates' voting rights as its biggest achievement.

She said restoring expatriates' confidence in the banking sector was another major success of the government, which has had a highly positive impact on remittance inflows.

Expatriate Bangladeshis sent a record $30.04 billion in remittances in the 2024–25 fiscal year, the highest amount ever received in a single fiscal year in the country's history.

She also viewed the bilateral agreement with Saudi Arabia and progress in the South Korean and Japanese markets as positive developments.

Why migration cost remains high

Expatriates' Welfare Adviser Asif Nazrul highlighted the interim government's efforts to reduce migration costs during International Migrants Day on 18 December last year.

A year later, another Migrants Day has arrived, but the issue remains largely unchanged.

According to sector insiders, expenses for low-skilled overseas job seekers from Bangladesh to major destinations including Saudi Arabia, Kuwait, Qatar, and Singapore currently range from Tk4 lakh to Tk10 lakh. Before 2008, costs ranged between Tk80,000 and Tk5 lakh.

High migration costs for Bangladeshi workers were identified as the top challenge in the overseas employment sector in the White Paper on the State of Bangladesh's Economy published November last year.

Illegal visa trading, the involvement of middlemen, and high airfare are the main reasons for the elevated migration costs, according to labour recruiters.

"We have to procure job demands from destination countries, which account for a major portion of total migration costs. The government must work with destination countries to curb or regularise this system," said Shamim Ahmed Chowdhury Noman, former secretary general of the Bangladesh Association of International Recruiting Agencies (Baira).

Commenting that strict accountability in the recruiting agency and broker system was essential to reduce migration costs, Tasneem Siddiqui said, "Instead of reducing the number of licences, issuing new licences has made the situation more complicated rather than lowering costs. More than 200 new agencies have been granted licences over the past one and a half years."

The previous regime increased the number of agencies to 2,500 from just 900. Although BMET cancelled around 200 licences, new approvals pushed the total number back to around 2,500.

This excessive number of agencies has created instability in the sector, as it is disproportionate to actual labour demand.

A top BMET official told TBS, "The government fixed the migration cost for labour intensive destinations, but it's not effective as the whole cycle involves crucial parts abroad. We are trying to regularise the agencies and middlemen."

He declined to comment on the large number of agencies.

Focus remains on number rather than quality

Sending over 10 lakh workers annually – more than 80 percent of whom are low-skilled – has been the common picture over the past four years, and the interim government has not significantly deviated from this trend.

Dr Mohammad Jalal Uddin Sikder, a migration expert and associate professor at North South University, told TBS, "The interim government was not a political government, but it was no exception in focusing on numbers rather than quality migration. They could have done better by creating a long-term environment for a transparent, skill-based migration system."

"We have also seen that corrupt recruiting agencies involved in the Malaysian syndicate have continued to operate during this period," he added.

Migration experts believe that although nearly 11 lakh Bangladeshi workers went abroad by December this year, this cannot be described as a sustainable success.

They warned that if Saudi Arabia were to stop recruiting workers for any reason, Bangladesh's labour migration sector would face a major crisis.

Rather than chasing numbers, experts argue that greater attention should be given to the quality of remittances. There is no need to send 12–13 lakh workers abroad every year; if remittance inflows remain stable, the focus should be on sending fewer but more skilled and accountable migrants.

Expatriates' Welfare Adviser Asif Nazrul and senior secretary Neyamat Ullah Bhuiyan could not be reached for comment despite repeated attempts via phone and text messages.

Public–private initiatives insufficient for upskilling

Although BMET has increased its capacity in 26 Technical Training Centres (TTCs) to conduct skill verification tests for the Saudi labour market, the overall state of upskilling remains below expectations. Currently they have 110 TTCs across the country.

"Most technical training centres in the country still lack adequate teachers, modern training equipment, and even basic infrastructure. It is not possible to produce skilled workers from such institutions," said Tasneem Siddiqui.

Speaking about upskilling, she said, "Lack of awareness is a major problem. Many workers are not interested in improving their skills. To address this, RMMRU, with support from the Swiss government, is implementing a project of Helvetas Bangladesh in five upazilas of Cumilla so that migrant workers can make informed decisions about migration, maximise economic benefits through upskilling, and reduce migration-related risks."

Under the 'Strengthen and Informative Migration System' project, training has been provided to local stakeholders and Union Digital Centre entrepreneurs, orientation sessions have been organised to prepare workers before overseas employment, and grievance management committees have been formed.

The government's borrowing from the banking sector rose sharply by Tk33,542 crore in a span of just 14 days, driven by election-related expenditure and fund injections to support the capital of five banks, according to a recent Bangladesh Bank report.

Data from the central bank show that government borrowing remained minimal from 1 July to 24 November of the current fiscal year, largely because development spending was virtually stalled. However, the situation shifted within the following two weeks.

By 8 December of FY2025-26, the government's total borrowing from the banking sector had risen to Tk45,239 crore, according to Bangladesh Bank data.

This compares with net borrowing of just Tk11,697 crore during the 1 July-24 November period of the same fiscal year, highlighting the sharp increase.

According to central bank figures, the government has set a target of Tk1.04 lakh crore in domestic borrowing for the current fiscal year. Now, with the latest borrowing, nearly 43% of that target has been reached.

Why the sudden rise

Bankers said government borrowing typically increases in the second quarter of a fiscal year. However, they noted that the surge in the two weeks was mainly due to the release of funds as subsidies in the process of merging five Shariah-based banks, alongside spending related to the election period.

They added that one of the main reasons for low borrowing in the first five months was the near standstill in development expenditure, which kept government financing needs limited during that period.

Central bank data show that the government's net borrowing till 8 December included Tk23,227 crore from scheduled banks and Tk22,011 crore from Bangladesh Bank.

Just a month earlier, up to 24 November from 1 July, net borrowing from scheduled banks stood at only Tk9,704 crore, while net borrowing from the central bank was Tk1,901 crore.

Auction calendar changed at short notice

A senior Bangladesh Bank official said the government held two additional auctions in December outside its scheduled borrowing calendar.

"Through two extra auctions of 91-day treasury bills and five-year treasury bonds, around Tk10,000 crore was raised from the market," the official said.

According to Bangladesh Bank data, on 10 December, the government raised Tk5,000 crore through a 91-day treasury bill auction held outside the pre-announced calendar. Earlier, towards the end of November, another Tk5,000 crore was raised through a five-year treasury bond auction, which carried an interest rate of 10.55%.

"This brings the total off-calendar borrowing for the October-December quarter to Tk10,000 crore," a senior Bangladesh Bank official told The Business Standard, confirming the development.

He said the off-calendar borrowing was likely linked to the Tk20,000 crore capital injection into Sammilito Islami Bank, which created a short-term liquidity requirement. "Treasury bills and bonds are being used to manage these funds," the official said.

Supporting this view, the treasury head of a private bank said that with most government projects currently on hold, the move was mainly a fund-management measure.

Another Bangladesh Bank official said the central bank was closely monitoring the situation to ensure that the increased borrowing does not fuel inflation.

Now, following this development, the government's total borrowing since 24 November will increase more.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said it is normal for the government to channel funds to one area while borrowing from another.

"However, the scale of borrowing from the banking sector should not create distortions that could disadvantage private borrowers," he said. "As demand for private-sector loans rises, care must be taken to ensure fair access.

The situation at Maksons Spinning Mills, a listed textile firm, has worsened as its accumulated losses surged to Tk406 crore over the last three years, with the highest loss of Tk224.41 crore recorded in FY25.

Once a regular profit-maker and generous dividend payer, the spinner is now struggling as its revenue has fallen sharply, pushing it deeper into losses.

Due to consecutive losses, Maksons Spinning Mills has failed to recommend any dividends for its shareholders, with the last payout being a 10% cash dividend for the year ended June 2022.

Amid this failure to pay dividends, its shares were downgraded to the Z category last year.

On Monday (15 December), the company disclosed through the stock exchanges a loss per share of Tk9.42 for FY25, up from Tk3.69 in the previous fiscal year.

Its financial statements are yet to be published, but calculations based on total outstanding shares indicate a net loss of Tk224 crore for FY25, significantly higher than the Tk87 crore loss in FY24.

Mohd Younus Bhuiyan, chief financial officer of Maksons Spinning Mills, told The Business Standard, "We have been facing difficulties in opening letters of credit to import raw materials over the past year due to banking complexities."

When asked whether the factory is currently closed, he said it remains operational, fulfilling some orders on a subcontracting basis.

According to previous financial statements, the company has faced significant challenges, including high inflation, increased raw material costs, higher utility expenses, rising labour costs, and adverse foreign exchange rates.

A decline in unit prices of finished goods, combined with escalating costs of raw materials, labour, operations, and utilities, has eroded profitability, collectively contributing to negative earnings.

Significant falls in revenue

The company has yet to publish its FY25 financials. Its previous five-year statements showed an average annual revenue of around Tk500 crore from FY20 to FY24.

However, in the first nine months of FY25, revenue stood at Tk172 crore, a 58% year-on-year decline from Tk409 crore in the same period of FY24. Before financial expenses, the loss was Tk14.68 crore, which increased to Tk100 crore after Tk85.66 crore in loan expenses.

By the end of the nine-month period (July 2024-March 2025), total losses reached Tk109.74 crore. With a total FY25 loss of Tk224 crore, over half of the loss was incurred in the final quarter (April-June).

At the end of Q3, the company owed around Tk488 crore in loans, including Tk326.92 crore in short-term loans and Tk161 crore in long-term loans.

Annual General Meeting

The company has scheduled its annual general meeting (AGM) for 24 February through a hybrid system combining digital and physical presence. The record date to identify shareholders has been fixed for 7 January.

Maksons reported negative net operating cash flow per share of Tk5.82 and a net asset value per share of Tk2.84, compared with negative Tk2.57 and Tk12.29 previously. On Monday, its shares closed at Tk5.30, down 1.85% from the previous session.

Incorporated in 2003, Maksons Spinning Mills Limited is one of Bangladesh's pioneering spinning companies. It was listed on the stock exchanges in 2009 through an initial public offering (IPO).

The company has a capacity of 100,680 spindles with state-of-the-art machinery imported from Japan, China, India, Italy, the US, Germany, Switzerland, and Taiwan. It produces yarn for export with an annual production capacity of 21.25 million kilograms.

Maksons manufactures 20/1 to 80/1 count 100% cotton yarn, organic yarn, combed yarn, Supima yarn, and high-quality compact yarn.