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.

Bangladesh is preparing to ramp up its liquefied natural gas (LNG) imports as global spot prices soften and local gas output continues to fall behind the domestic demand.

For the current fiscal year 2025-26, the government initially planned to import 115 cargoes of LNG through a mix of long-term contracts and spot purchases. That is already higher than the 94 cargoes bought in the previous year.

Now, the authorities are considering importing even more as international prices have remained subdued amid weak demand from major buyers such as China and Japan.

"LNG prices reduced significantly. So, I am going to suggest the energy ministry to import more," said Finance Adviser Salehuddin Ahmed.

"I hope LNG imports this year will be higher compared to the initial plan," he told The Daily Star.

Ahmed said money is not a problem here, though physical capacity limits how much LNG the country can bring in at short notice.

Of the planned 115 LNG cargoes in FY26, each consignment would carry 33.60 lakh mmBtu of gas, according to Rupantarita Prakritik Gas Company Limited, the state-owned firm responsible for LNG conversion and supply.

On Monday, the government approved the purchase of one spot cargo at $9.99 per mmBtu.

In 2022, after the Russia-Ukraine war broke out, LNG averaged $18.43 per mmBtu. That dropped to $12.84 in 2024. The spot rate stood at $13.52 per mmBtu in June this year before easing further to $11.02 in November.

World Bank commodity price data also point to a gradual downward trend, while international energy analysts say LNG prices may decline further as supply remains ample.

According to international media reports, North Asian spot LNG prices have hovered around $9 per mmBtu, with the region's largest buyers staying largely out of the market for the coming months.

Chinese importers are holding strong inventories and are not seeking additional cargoes. Demand in Japan also remains weak, while South Korea has shown only limited spot buying interest despite being the world's third-largest LNG buyer.

Bangladesh sources LNG through two channels, long-term supply agreements and the spot market.

Amid declining domestic gas extraction, the government began importing LNG in 2018 to meet the domestic fuel demand.

Gas demand is projected to reach 6,240 million cubic feet per day (mmcfd) by 2030, according to the Integrated Energy and Power Master Plan 2023, which maps out the energy sector through to 2050.

By the end of 2023, domestic gas production stood at about 2.08 billion cubic feet per day from all fields, including those operated by international oil companies. That is lower than the 2012 average of around 2.20 billion cubic feet per day, according to state-run Petrobangla.

Under existing long-term agreements, the government is set to buy 40 LNG cargoes from Qatar and 16 from Oman in FY26. In 2026, supplies are due to rise further, with an additional 12 cargoes from Qatar and four from Oman.

A separate deal with US-based Excelerate Energy will see 14 cargoes supplied each year, beginning from January 2026. Besides, the government will purchase 33 cargoes from the spot market during the current fiscal year.

In the first five months of FY26 up to November, Bangladesh bought a total of 50 LNG cargoes. Of these, 29 arrived under long-term contracts, with the rest sourced from the spot market.

Preferring anonymity, an official of Rupantarita Prakritik Gas Company said LNG under long-term contracts is currently being bought at around $9.5 per mmBtu.

Despite the price drop, imports cannot be expanded aggressively, according to the official.

Because Bangladesh has only two floating storage and regasification units, operated by Excelerate Energy and Summit LNG Terminal Company. Together, the two terminals have a regasification capacity of 1,100 million cubic feet per day.

At present, two land-based LNG terminals are being established in Cox's Bazar, with a combined daily regasification capacity of 2,000 million cubic feet. However, both projects are still at an early stage.

The government has spent only 11.75 percent of its Annual Development Programme (ADP) allocation in the first five months of the current fiscal year, marking the weakest implementation performance in at least 15 years.

According to data released by the Implementation Monitoring and Evaluation Division (IMED) on Monday, ADP expenditure reached Tk 28,043 crore during July-November of fiscal year 2025-26 (FY26), out of a total fund of Tk 2,38,695 crore, the lowest allocation in four years.

The pace of spending has slowed sharply compared with previous years. Officials say the low implementation is owed to political uncertainty, reduced development projects, and austerity measures.

During the same period of FY25, ADP expenditure reached Tk 34,215 crore, despite widespread political unrest that had disrupted development activities.

Spending was even higher in earlier years, amounting to Tk 46,857 crore in FY24 and Tk 47,122 crore in FY23. Notably, even during the July-November period of FY21, when economic activities were largely suspended due to the Covid-19 pandemic, the ADP implementation rate was higher at 17.93 percent.

IMED data also indicate a significant slowdown in the utilisation of foreign-funded development resources.

Expenditure from foreign sources fell to Tk 10,794 crore in the first five months of FY26, representing only 36 percent of the foreign-funded portion of the ADP. In the corresponding period of FY25, foreign-funded ADP spending stood at Tk 11,407 crore, or 11.41 percent of the allocation.

THE TOP SPENDERS AND LOW SPENDERS

Implementation performance varied widely across ministries and divisions. Despite receiving substantial allocations, the health sector showed particularly weak progress.

The Medical Education and Family Welfare Division utilised only 1.8 percent of its allocation, while the Health Services Division spent just 3.92 percent during the period.

By contrast, several other ministries recorded comparatively stronger execution.

The Ministry of Science and Technology led with an implementation rate of 27.42 percent, followed by the Ministry of Energy and Mineral Resources at 21 percent and the Local Government Division at 20.10 percent.

Planning ministry officials attributed the overall slowdown to austerity measures and the lingering effects of political uncertainty following the events of August 5 last year, which disrupted project implementation.

They said the interim government has delayed or postponed a number of projects initiated by the previous administration due to budgetary constraints.

Officials also noted that several contractors involved in development projects left the country after the political transition, abandoning work midway and further slowing implementation.

On December 1, Planning Adviser Wahiduddin Mahmud voiced frustration over the situation, saying, "We are not speeding up the ADP execution rate."

He pointed out that many government officials are now reluctant to serve as project directors, while contractors have become less interested in participating in development projects following reforms to public procurement rules.

According to Mahmud, the interim government's reforms have made procurement more transparent by dismantling monopolistic practices and requiring contractors to disclose full business and tax information.

"We could not speed up project implementation as nobody wants to become a project director now, and contractors are also less enthusiastic," he said.

Government spending under the Annual Development Programme (ADP) has hit a record low in the first five months (July-November) of the fiscal 2025-26.

During the period, ministries and divisions spent Tk28,043.62 crore, according to a report published today by the Implementation Monitoring and Evaluation Division (IMED).

This is the lowest ADP expenditure in the opening five months in recent history, shows IMED's data, which provides ADP spending data going back to FY11.

ADP spending during July-November of last fiscal year was Tk34,215 crore, even amid political unrest, which had slowed development work. Spending in FY24 and FY23 recorded Tk46,857 crore and Tk47,122 crore respectively.

IMED data shows that only 11.75% of the current fiscal year's ADP allocation was spent till November, down from 12.29% last year and well below 17.06% and 18.41% in the same periods of FY24 and FY23.

The government aims to spend Tk2,38,695.64 crore through the ADP in the current fiscal.

IMED officials said many contractors initiated under the previous government have not returned for political reasons, leaving implementation stalled. Delays in approving the new procurement policy have further postponed the start of several construction projects, impacting overall ADP execution.

They added that all ministries and divisions have been urged to start spending according to plans from the beginning of the new year, they said.

Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, told The Business Standard that pre-election priorities have restricted policymaking and project execution.

"Post-election, the government should act swiftly to restore high-speed implementation, strengthen revenue collection, and revive overall economic momentum," noted the economist.

He further said, "Government projects are often excessive in number, and poorly selected. This structural weakness has created prolonged stagnation in both public and private investment."

Former planning secretary Md Mamun-Al-Rashid told TBS that ADP implementation is unlikely to improve before the election scheduled for February, with the stagnation particularly affecting employment.

"Development spending generates large-scale job opportunities and has multiplier effects on the economy, but delays in project execution hampered progress," he said.

Spending breakdown

IMED data shows that in the first five months, Tk15,614 crore from the government fund was spent, 10.84% of the allocation, down from Tk19,411 crore (11.76%) in the same period last year.

Foreign loans and grants contributed Tk10,794 crore, 12.55% of the allocation, below last year's Tk11,407 crore (11.41%). Agencies' own funding accounted for Tk1,639 crore, down from Tk3,396 crore last year.

In the current fiscal year, 15 ministries and divisions have been allocated 74.56% of the ADP, as overall implementation largely depends on these bodies.

Among the highest-allocated, the Medical Education and Family Welfare Division spent just 1.8%, while the Health Services Division spent 3.92% in the first five months.

Among top-allocated ministries, the Ministry of Science and Technology achieved the highest implementation at 27.42%, followed by the Ministry of Energy and Mineral Resources at 21%, Local Government 20.10%, Water Resources 20.16%, and Agriculture 17.09%.

Meanwhile, due to low implementation, the Planning Commission has begun the process of revising and reducing the size of the ADP. Officials have proposed cutting Tk30,000 crore from the original plan – reducing the government fund allocation from Tk1,44,000 crore to Tk1,28,000 crore, and foreign loans and grants from Tk86,000 crore to Tk72,000 crore.

The revision is expected to be finalised at the upcoming National Economic Council meeting next month.

The country spent more than $26 billion on servicing domestic and foreign debt in fiscal year (FY) 2023-24, nearly half of its national budget, leaving limited room for development and social spending, according to a study by a private think tank.

The pressure of debt servicing is mounting due to the rising debt stock and higher interest payments, said the study by Research and Policy Integration for Development (RAPID), noting that the growing burden is increasingly squeezing public expenditure.

"Rising debt-servicing costs against weak domestic revenue mobilisation effort risk undermining development and macroeconomic stability," said MA Razzaque, chairman of RAPID, yesterday.

At a seminar in Dhaka on socioeconomic priorities for the next government, Razzaque laid out 12 challenges for the next government, ranging from debt servicing and graduation from the least developed country club to inflation control, limited social spending, energy security and unemployment.

In FY24, total debt stock stood at $174 billion, equal to 38.5 percent of gross domestic product (GDP). In that year, domestic and external debt servicing was $26.26 billion.

"If we convert Bangladesh's domestic revenue into dollars, only 36 percent remains after debt servicing," Razzaque said, citing a joint World Bank and International Monetary Fund (IMF) study conducted as part of a debt sustainability analysis.

"If we consider total government revenue, including NBR revenue plus non-tax revenue, this share stands at over 31 percent."

This means that even when the government wants to spend more on development, debt servicing appears as a heavy financial burden.

Over the past four to five years, development budgets have often been nominal in real terms, with a large share of government expenditure going towards debt payments.

"Even though we talk about foreign debt, the borrowing from the domestic sector has also increased very rapidly, especially between fiscal years 2016 and 2024," said Razzaque.

During this period, domestic borrowing has grown at an average annual rate of 18 percent.

"One of the next government's primary tasks will be to rein in this fiscal pressure. Otherwise, it will have little room to operate or pursue its priorities," he said.

The economist also warned that the next elected government may have little scope to meaningfully revise the budget inherited from its predecessor due to the sluggish pace of revenue collection.

"If we fail to accelerate revenue mobilisation, much of our future development will be seriously hindered," he said.

He described current revenue trends as one of the biggest risks facing the next government, limiting its ability to introduce any major fiscal changes.

Chronic underinvestment in health, education and social protection, he added, should top the agenda when the new government prepares its first budget, expected between February and June.

Bangladesh's tax-to-GDP ratio has fallen to around 7 percent, a level Razzaque called "alarmingly low".

Comparable economies such as India, China, Nepal, Malaysia, Cambodia and Thailand collect far more, while Bangladesh's tax-to-GDP ratio also trails the average for lower-middle-income countries.

He said stronger revenue collection matters not only for development spending but for reducing inequality, with fair taxation of higher-income groups and targeted support for poorer communities helping to narrow social gaps.

Referring to an upcoming RAPID study, Razzaque said 54 percent of national wealth is held by just one percent of the population, a concentration he said could threaten social stability.

He added that the first test for the next government will be managing immediate crises, which may restrict attention to longer-term goals.

"Early challenges, including inflation, banking stability, reserves, and LDC graduation, will shape the government's term," he said.

Acknowledging the low tax-to-GDP ratio, NBR Chairman Md Abdur Rahman Khan said that developed countries can allocate around five percent of GDP to health spending after collecting revenue equal to 30 to 40 percent of their GDP.

"But with Bangladesh generating only six percent of GDP in revenue, how can we spend five percent on health? If expenditure exceeds income, the debt burden naturally increases. That is why we are trying to boost revenue through modernising our management systems," he said.

At the seminar, business leader Anwar-Ul Alam Chowdhury said businesspeople are facing various difficulties during the ongoing interim government period, yet political actors appear disengaged.

"They seem focused only on getting back into power. If this mindset continues, Bangladesh will lose the opportunities now emerging and fall further behind where it currently stands," he said.

Former caretaker government adviser Rasheda K Choudhury urged higher investment in health and education. "If we do not step up investment in these sectors, we will have to face the consequences," she said.

She also called for stronger action against corruption and improvements in governance.

Among others, Prof Mohammad Mainul Islam and Prof Rashed Al Mahmud Titumir of the University of Dhaka; Shawkat Hossain, head of online, Prothom Alo; and Doulot Akter Mala, president of the Economic Reporters' Forum, also spoke at the event.

M Abu Eusuf, executive director of RAPID, moderated the programme.

National Tubes Limited, a publicly listed industrial company, has come under scrutiny after its latest audited financial statements revealed significant accounting discrepancies, violations of international accounting standards, and corporate governance weaknesses.

The findings have raised serious concerns about the reliability of the company's financial reporting and internal control systems. The audit report was recently disclosed on the Dhaka Stock Exchange (DSE) website. On Monday, National Tubes' shares closed at Tk62.50 on the DSE.

One of the most serious concerns relates to work-in-process (WIP) inventories. The company reported GI Pipes, MS Pipes, and API Pipes WIP totalling Tk2.78 crore. However, the audit revealed that these inventories did not physically exist as of the reporting date. Negative variances between actual production and standard production were incorrectly recorded as WIP instead of production loss. As a result, inventory assets and retained earnings were materially overstated, undermining the reliability of the financial statements.

The audit also noted that National Tubes last revalued its property, plant, and equipment (PPE) in 2012. No revaluation has been conducted in the past 12 years, violating IAS 16, which mandates regular revaluation when the fair value of assets materially differs from their carrying amount. Additionally, the company has not reviewed the useful lives and residual values of depreciable assets annually, which may result in inaccurate depreciation charges.

Auditors further observed that the company applies a uniform reducing balance method of depreciation across all asset categories, without considering actual usage patterns. No effective asset tagging system or complete fixed asset register exists, preventing physical verification of assets.

The audit report highlighted the absence of required impairment testing under IAS 36, despite clear external and internal indicators. Externally, the company's shares were quoted at Tk88.30 per share on 30 June 2025, compared to a net asset value of Tk137.32, indicating a significant gap between market capitalisation and net assets. Internally, production is only 4,000 tonnes per annum, far below the 10,000-tonnes capacity, signalling underutilisation of assets.

Additionally, the company has Tk84 lakh receivable from disinvested mills formerly under the BSEC, many of which are no longer operational. No Expected Credit Loss provision has been recognised, violating IFRS 9. The audit also noted that National Tubes reported advance income tax of Tk431 crore, while the corresponding tax provision stood at only Tk98 crore, leaving Tk333.4 crore of uncertain recoverability.

Serious irregularities were also identified in the Provident Fund (PF). Contributions and outstanding PF loans totalling Tk1.68 crore were not transferred to the designated trustee account, violating labour laws and fund regulations. Similarly, the gratuity scheme has not undergone the mandatory actuarial valuation, potentially misstating obligations.

Other governance issues included failure to conduct Workers' Profit Participation Fund audit, non-filing of withholding tax returns for the 2024-25 fiscal year, and unclaimed dividends exceeding three years Tk31 lakh not transferred to the Capital Market Stabilisation Fund, violating BSEC rules.

In the first quarter (July-September 2025), National Tubes' financial performance remained weak. The company reported net sales of Tk43 lakh, a net loss of Tk27 lakh, and EPS of Tk0.77 loss per share. The NAV per share stood at Tk136.84.

The company stated that EPS declined due to lower turnover compared with the previous period, while net operating cash flow per share decreased due to lower cash collections and higher payments for costs and expenses.

Despite these losses, the board has recommended a 1% cash dividend for FY25, signalling management's intent to maintain shareholder returns amid challenging conditions.

At least 57 stocks listed on the Dhaka Stock Exchange (DSE), the country's premier bourse, will not pay any dividends to investors amid worsening business conditions and a lack of distributable funds due to heavy losses, leaving shareholders empty-handed.

Among the firms, five are banks and non-bank financial institutions, and, the remaining 52 stocks are from the manufacturing sector, according to DSE data.

Around 200 listed companies have declared annual financial results for FY25, while two banks, two NBFIs, and one insurance company declared for 2024.

An analysis of the data shows that 12 of the two dozen government-owned firms failed to recommend dividends, while 13 textile companies – out of a total of 58 in the sector – also did not declare any dividends for their shareholders.

Nine firms from the engineering sector recommended zero dividends, followed by five pharmaceutical firms, five banks and NBFIs for 2024, nine firms from the power, food & allied, and information & technology sectors, and five firms from the tannery, cement, and paper sectors.

Meanwhile, 43 companies have declared dividends only for their general shareholders, meaning sponsor-directors will not receive any dividends from the distributable profits.

However, some companies have recommended minimal dividends – below 1% – to avoid being downgraded to the Z category.

Analysts and industry insiders said that over the past year, fragile macroeconomic conditions and political uncertainty have weighed on business performance. Rising production and utility costs, along with a raw material crisis, have also hurt companies.

As a result, many firms failed to post profits, with the majority seeing earnings shrink, while some slipped into the red with substantial losses. Owing to negative retained earnings, these companies were unable to pay dividends.

Govt companies on top of skipping dividends

Around one and a half dozen firms listed on the bourses are from the power sector, NBFIs, engineering, and the food allied sector.

Three years back, the majority of government firms were profitable and used to pay dividends to their shareholders.

But now, the situation has almost reversed as the majority of firms sank into huge losses as their business situation worsened due to failure to compete with the private sector, and other external factors like foreign currency fluctuation.

The data shows 12 firms skipped dividend pay-outs as they incurred huge losses.

Dhaka Electric Supply Company skipped paying dividends for its shareholders for consecutive fiscal years as its losses widened and pushed it to downgrade to the Z category for the first time in its history since listing in 2006.

The state-owned power distributor decided to skip dividend payments for two consecutive years – FY24 and FY25 – due to heavy losses and negative retained earnings.

Desco incurred a loss of Tk125 crore in FY25, and for the third consecutive year, with total losses exceeding Tk1,172 crore till FY25.

The skipping of dividends for Investment Corporation of Bangladesh (ICB), a state-owned investment bank, occurred for the first time in its history as it incurred Tk1,214 crore loss in FY25 amid a prolonged crisis stemming from poor investment decisions and a downturn in the capital market.

Although previously it had paid over 10% cash dividends to its shareholders with handsome profit, it paid 2% cash dividend for FY24.

An official of ICB told The Business Standard, "ICB is not in a position to pay any dividends to its shareholders because its financial health has gradually worsened. Despite fresh fund injections, ICB's financial health is unlikely to improve."

Power Grid Bangladesh, another government-owned firm, announced that it will not pay any dividend for FY25.

This marks the second consecutive year the state-run company has skipped dividends, although it had paid handsome dividends for its shareholders in the previous years.

The other government companies, which skipped dividends, are Bangladesh Services, operator of InterContinental Hotel, National Tea, Renwick Jajneswar & Co (Bd), Shyampur Sugar Mills, Usmania Glass Sheet Factory, Zeal Bangla Sugar Mills, Atlas Bangladesh, Eastern Cables and Aziz Pipes.

13 textile sector firms also skipped dividends

The data shows that 13 textile sector firms have sipped dividends for their shareholders for FY25.

As these firms incurred heavy losses and failed to make profit, they declared zero dividend payouts.

Maksons Spinning Mills posted the highest Tk224 crore losses in three years in FY25.

Before the years, it regularly posted profit and dividend to its shareholders. As losses widened in FY25, it had skipped to pay dividends with the last payout being a 10% cash dividend for the year ended in June 2022.

In the last three years, it incurred a total Tk406 crore losses.

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

He said it remains operational, as the company is fulfilling some orders on a subcontracting basis.

Bashundhara Paper Mills, one of the major leaders in the paper industry, failed to declare dividends for its shareholders as its business situation worsened amid a raw materials crisis and loan burden.

Lub-rref (Bangladesh) Ltd has suffered a dramatic financial reversal, reporting a record loss of Tk66 crore for FY25.

Due to the losses, it failed to recommend any dividends for that year for the first time since its listing.

Owing to the local procurement by its competitor, Lub-rref fell into "unfair" competition in the domestic market. "Combined with a working capital shortage and the lack of access to bank borrowing, the once-profitable company fell into trouble," Kabir Hossain, company secretary, said.

The Bangladesh Securities and Exchange Commission (BSEC) has expressed serious concern over audit observations made in the latest audited financial statements of 27 listed insurance companies, warning that the issues could undermine investor confidence and market transparency.

Based on a detailed review of the annual audited financial statements for the year 2024, the capital market regulator has formally requested the Insurance Development and Regulatory Authority (IDRA) to take appropriate regulatory measures against the identified companies in accordance with applicable laws and regulations.

According to BSEC, statutory auditors of the listed insurance companies issued various critical observations, including Adverse Opinions, Qualified Opinions, Emphasis of Matter, Going Concern threats, and Material Uncertainty in their audit reports. The Commission noted that such opinions are not routine and often indicate serious weaknesses in financial reporting, corporate governance, and risk management practices.

BSEC believes these audit observations may adversely affect investors' interests, the transparency of financial disclosures, and overall confidence in the capital market – particularly in a sector that handles long-term liabilities and public trust.

The insurance companies flagged by BSEC include Asia Insurance, Asia Pacific General Insurance, Bangladesh General Insurance, Central Insurance, Continental Insurance, Desh General Insurance, Dhaka Insurance, Eastern Insurance, Federal Insurance, Green Delta Insurance, Islami Commercial Insurance, Islami Insurance Bangladesh, Janata Insurance, Meghna Insurance, Northern Islami Insurance, Paramount Insurance, Phoenix Insurance, Prime Insurance, Republic Insurance, Rupali Insurance, Sonar Bangla Insurance, Sikder Insurance, Standard Insurance, Union Insurance, Delta Life Insurance, Popular Life Insurance, and Sunlife Insurance.

In a formal letter sent to the Chairman of IDRA by its Corporate Reporting Department, BSEC stated that audit observations related to going concern risks and material uncertainty are of particular concern, as they directly question the companies' ability to continue operations and meet policyholder obligations.

The commission emphasised that ensuring the credibility of financial reporting and safeguarding the integrity of the insurance sector require swift and effective regulatory intervention by IDRA, the primary regulator of insurance companies.

BSEC noted that it is closely monitoring the audited financial statements of all listed companies to protect investor interests and maintain market stability. It believes that timely regulatory action by IDRA – such as enhanced supervision, special or forensic audits, and enforcement of corrective measures – would help strengthen financial discipline and governance within the insurance sector.

Experts believe the coordinated actions of BSEC and IDRA present a critical opportunity to address long-standing weaknesses in the insurance sector. If corrective measures are implemented effectively, the sector could regain credibility, strengthen investor confidence, and become more sustainable and investment-friendly in the long term.

Currently, 82 insurance companies are operating in the country. Of these, 58 companies are listed on the stock market, representing a significant portion of the insurance sector. Among the listed companies, 43 are non-life (general) insurance companies, while 15 are life insurance companies.

Renata PLC, one of the country's leading drug makers, expects a visible improvement in its financial position within the next one to two years, as it works to reduce debt and restore the strong profit margins it once enjoyed, said its Managing Director and Chief Executive Officer Syed S Kaiser Kabir.

He made the remarks today (15 December) while speaking at the inauguration ceremony of trading of Renata's preference shares, marking the first-ever launch of preference share trading on the Dhaka Stock Exchange (DSE).

However, no preference shares are not traded on the debut day.

Renata raised Tk325 crore through non-cumulative, non-participative, fully convertible preference shares priced at Tk1,900 each. The shares have a six-year tenure from 19 October 2025, with conversion into ordinary shares beginning after the third year in four annual phases at a conversion price of Tk475 per share. Preference shareholders will be entitled to a 15% annual dividend on the unconverted portion, subject to the availability of sufficient post-tax profits.

"At one time, Renata was a debt-free company with strong net margins, which was a matter of pride for us. Our goal now is to regain that position," Kaiser Kabir said, expressing confidence that the company is on the right path to financial recovery.

The event also marked the signing of a listing agreement between the DSE and Renata PLC at the DSE Training Academy, formalising the commencement of trading of the company's preference shares on the DSE's Alternative Trading Board (ATB).

Explaining the background to Renata's recent financial strain, Kaiser Kabir said the company's planned investments were severely affected by a sudden and sharp depreciation of the local currency. While the initial investment outlay was estimated at around Tk1,000 crore, the cost escalated to nearly Tk1,500 crore due to currency devaluation, an increase that was both unexpected and unavoidable.

"This depreciation happened within a very short time, forcing Renata to rely on bank borrowing, even though the company had remained virtually debt-free for many years," he said. As debt levels rose, management found itself increasingly focused on reducing liabilities rather than investing in innovation and long-term growth.

Due to the high debt burden, the company's annual profit came down to Tk200 crore from Tk500 crore, he added.

To ease the debt burden, Renata opted for an alternative financing structure by issuing preference shares, raising Tk325 crore through private placement. The proceeds were used primarily to repay outstanding loans.

He also pushed back against negative perceptions surrounding corporate borrowing, saying that while a small number of businesses fail to repay loans, the vast majority of entrepreneurs responsibly meet their obligations. "It is unfair that the entire industry is judged based on the actions of a few," he said.

Highlighting the broader role of the capital market, Kaiser Kabir stressed that entrepreneurs should have multiple financing options beyond initial public offerings and rights issues. He called for the introduction of more diversified and innovative financial instruments to help companies build healthier and more sustainable capital structures.

DSE Chairman Mominul Islam, speaking at the event, said the stock exchange is working to strengthen trust-based and customer-centric relationships with both companies and investors. He noted that Renata's strong compliance record, corporate governance standards and organised shareholding structure enabled quicker regulatory approvals, although the combined approval process of the BSEC and DSE still took time. We are working for digitalising the approval process which will be reduced the time.

DSE's Acting Managing Director Asadur Rahman said the listing of preference shares as equity securities on the ATB sets an important precedent for Bangladesh's capital market.

Bangladesh's imports of key essential commodities rose in the first quarter of fiscal year 2025-26 (FY26), supported by improved availability of foreign exchange and lower prices in the international market.

The country remains heavily dependent on imports for sugar, palm oil, soybean oil and wheat due to inadequate domestic production.

Bangladesh imports more than 95 percent of its annual sugar requirement, estimated at around 20 lakh tonnes, according to the Bangladesh Trade and Tariff Commission (BTTC).

Data from the Bangladesh Bureau of Statistics (BBS) showed that refiners imported 8.23 lakh tonnes of raw sugar during the July-September period of FY26, marking an 87 percent increase from 4.4 lakh tonnes a year earlier.

Taslim Shahriar, deputy general manager of Meghna Group of Industries, said global sugar prices had declined and banks were now opening letters of credit (LCs) more smoothly after the easing of the dollar crisis. "Sugar imports have so far been satisfactory."

World Bank Commodities Price Data showed that international sugar prices fell to 36 cents per kilogramme (kg) during the July-September period, down from 43 cents a year earlier.

In Dhaka, sugar sold for Tk 95-Tk 110 per kg, down 19 percent from a year ago, according to data compiled by the Trading Corporation of Bangladesh.

"There is no problem with LC openings now. Commodity prices are generally low, except for soybean oil, which remains expensive due to its use in biofuel production," Shahriar said.

Imports of palm oil, another highly import-dependent commodity, also surged, rising 40 percent year-on-year to 7.44 lakh tonnes in the first quarter, showed BBS data.

In contrast, soybean oil imports declined during the period after jumping 42 percent in FY25.

BTTC estimates Bangladesh's annual demand for edible oil at 22 lakh tonnes. However, oilseed imports continued to increase as local crushers focused on processing oilseeds to extract edible oils and produce by-products such as soybean meal and rapeseed cake to meet demand from the feed industry.

Local crushers imported 22.79 lakh tonnes of oilseeds, mainly soybeans, in FY25, posting a 1 percent increase. During the July-September period of FY26, oilseed imports surged 52 percent year-on-year to 5 lakh tonnes.

Businesses say the growing forex reserve and increased demand are encouraging more imports.

"We have been able to open letters of credit for more than a year now as the foreign exchange situation has improved. There is also an uptick in demand," said Mohammad Mustafa Haider, group director of TK Group, a major commodity importer and processor.

Bangladesh Bank (BB) data showed that LC openings for imports of consumer goods, including rice, wheat and sugar, increased in the four months to October this fiscal year. Imports of industrial raw materials such as crude edible oil and oilseeds also rose during the period.

"Demand for edible oil has remained stable, but demand for wheat for both industrial and household use has increased," Haider said.

He added, "Gas supply to factories has improved, allowing them to operate more smoothly. This has helped workers earn and spend more."

Wheat imports have surged significantly. According to the food ministry, total wheat imports stood at 29.57 lakh tonnes between July 1 and December 14 of the current fiscal year. The figure is nearly half of the 62.35 lakh tonnes imported in the whole of FY25.

Biswajit Saha, director of corporate and regulatory affairs at City Group, said the supply of essential commodities was expected to remain adequate during Ramadan, when demand typically rises.

TK Group Director Haider expects consumer demand to increase ahead of the general election scheduled for February 12 and during Ramadan, which will begin after mid-February.

"We expect a spike in demand, but it is difficult to predict how it will play out in reality," he said.

Rupali Bank has accumulated Tk14,156 crore in non-performing loans (NPLs) among its 32 largest borrowers, most of whom received credit far beyond regulatory exposure limits under special approvals, according to documents reviewed by The Business Standard.

The records show that 47 clients were granted loans exceeding 10% of the bank's regulatory capital, classifying them as "large borrowers" under central bank rules. Of these, just 32 borrowers now account for nearly 63% of the bank's total funded loans, with individual exposures surpassing 25% of capital – the ceiling designed to curb concentration risk.

Kazi Md Wahidul Islam, managing director of Rupali Bank, said the bulk of the problematic loans had been approved before he assumed office. He said recovery efforts have since been stepped up, with lawsuits filed against several borrowers and rescheduling pursued for others in line with their repayment capacity and policy provisions.

Asked why lending beyond the 25% exposure cap was permitted, he said: "Special circumstances necessitated such approvals in certain cases."

Bankers and analysts say weak transparency, political influence, and regulatory forbearance allowed large borrowers to secure excessive credit from state-owned banks, particularly during periods of systemic stress when supervision was relaxed.

Exposure limits and large borrowers

Under Bangladesh Bank's large loan policy, a bank's total exposure to a single borrower or group must not exceed 25% of its eligible capital. If the limit is breached, new lending must stop, and a risk-reduction plan must be implemented within a specified timeframe.

Loans exceeding 10% of regulatory capital classify a borrower as "large" though banks may lend up to 25% under the policy.

By December 2024, only 18 Rupali Bank clients had received loans beyond capital limits under special approvals, with the top 16 defaulters owing Tk7,660 crore.

Bangladesh Bank spokesperson Arif Hossain Khan said single-borrower limits exist to prevent excessive risk concentration and protect banks from collapse.

He added that some borrowers failed to settle non-funded liabilities, such as letters of credit, forcing banks to convert them into funded loans, inflating exposure.

"Political intervention played a role in large loans, particularly those linked to major conglomerates," he said. He cited the S Alam Group's case, where approvals were granted to avoid shortages of essential commodities, and Beximco's, where loans were cleared citing employment risks and labour unrest.

Second in defaults among state banks

Rupali Bank, formed in 1972 through the merger of Muslim Commercial Bank, Australasia Bank and Standard Bank, was profitable for decades but has recently come under mounting financial strain.

Among the four state-owned commercial banks, it now has the second-highest default rate after Janata Bank. By the end of September, defaulted loans stood at 20% at Sonali Bank, 40% at Agrani Bank, 70% at Janata Bank and 51% at Rupali Bank.

Despite the rising defaults, Rupali remained profitable last year, alongside Sonali Bank, while Janata and Agrani recorded heavy losses. Rupali posted a net profit of Tk8 crore, compared with Tk866 crore at Sonali Bank, while Janata and Agrani reported losses of Tk3,071 crore and Tk937 crore respectively.

Listed on the stock market since 1986, Rupali Bank posted net profits of Tk21 crore in 2022 and Tk54 crore in 2023. Central bank data show that Rupali's defaulted loans stood at Tk5,273 crore in 2021, representing 14.9% of total loans. That figure rose to Tk6,630 crore in 2022, or 15.5% of outstanding credit, before accelerating sharply over the past two years.

Defaults and capital position

By June 2025, Rupali Bank's defaulted loans had surged to Tk22,180 crore, or 44% of total loans. By September, the ratio climbed to 51% at Tk23,712 crore,, up from 21% in December 2023.

Central bank data show the top 20 defaulters alone account for Tk12,263 crore, or 55% of total defaulted loans. By June, the bank had recovered only Tk90 crore from these borrowers, meeting just 17% of its recovery target.

At the end of June, Rupali Bank's required capital stood at Tk9,882 crore, while maintained capital was negative Tk13,657 crore. The resulting capital shortfall reached Tk23,240 crore, alongside Tk15,542 crore in provisioning deferrals from the central bank.

Top 11 defaulters

Among Rupali Bank's largest defaulters are Blue Planet Group with Tk1,049 crore, Beximco Limited with Tk990 crore, Bangladesh Sugar and Food Industries Corporation with Tk900 crore, Crony Apparels with Tk850 crore and Jute Textile Mills owing Tk720 crore.

Other major defaulters include MSA Textile Limited with Tk580 crore, Unitex Group with Tk670 crore, Nurjahan Group with Tk630 crore, AA Knit Spin with Tk640 crore, Madaripur Spinning with Tk620 crore and Dolly Construction with Tk505 crore.

Defaults concentrate in five branches

Rupali's top five branches account for Tk15,394 crore, or 55.37% of total loans. The Local Office branch alone holds more than 36% of total lending, despite the bank operating 586 branches nationwide.

Arfan Ali, former managing director at Bank Asia, said deliberately defaulting clients usually avoid multiple branches, withdrawing loans from a select few. These clients often use political influence to control the board and management, concentrating loans in specific branches.

He added that in some branches, loan volumes far exceed deposits. In such cases, the branch obtains funds from other branches through interbank transfers to meet borrower demands, effectively creating opportunities for misappropriation.

In 2025, Rupali Bank earned Tk1,732 crore in interest income against Tk2,320 crore in interest expenses, resulting in negative net interest income of Tk597 crore. Its return on assets and return on equity stood at 0.01% and 0.5% respectively, underscoring the depth of its financial stress.

Payra port, the country's third seaport after Chattogram and Mongla, is facing a navigability crisis that has disrupted vessel movement and sharply reduced foreign cargo ship arrivals over the past year, raising concern among stakeholders.

Established under the Payra Port Authority Act on November 19, 2013, at Itbaria union in Kalapara upazila, Patuakhali district, the port began operations on August 13, 2016.

It started modestly with 10 ships in the fiscal year (FY) 2016-17 but grew steadily, handling 1,014 ships and 5.074 million tonnes of cargo in FY2023-24, a 33 percent increase from the previous year. Since opening, 5,401 ships, including 529 foreign vessels, have unloaded cargo, generating around Tk 2,346 crore in government revenue.

However, conditions deteriorated in the last fiscal year. In FY2023-24, 123 foreign vessels berthed at Payra, bringing 4.048 million tonnes of cargo and Tk 33.22 crore in revenue. In FY 2024-25, arrivals fell to 85 vessels, cargo imports dropped by 1.277 million tonnes, and revenue fell by Tk 8.6 crore.

Port officials and users attribute the decline to worsening navigability in the 75 km-long Rabnabad channel.

In 2021, Belgian firm Jan De Nul was hired for capital dredging at a cost of Tk 6,500 crore to deepen the channel to 10.5 metres, allowing large vessels to berth directly at the port's jetty. The dredged channel was handed over in April 2024, but heavy siltation reduced its depth within six months.

Port records show that only around 100 mother vessels berthed after dredging before navigability problems returned. As of December, the channel's average depth is about 6 metres at high tide and 5.9 metres at low tide, blocking larger vessels.

"Despite capital dredging, rapid siltation has reduced the channel depth to below 6 metres. If mother vessels cannot berth directly, users may gradually stop using the port," said Md Mamunur Rashid, director of the Bangladesh Shipping Agents' Association.

Major port users include the 1,320 MW Payra Thermal Power Plant and RPCL-Norinco International Power Limited (RNPL), both importing around 12,000 tonnes of coal daily.

Shallow waters now force coal-carrying mother vessels to anchor off Kutubdia near Chattogram port, with coal transferred to the plants by smaller lighter vessels, increasing time and cost.

RNPL Supervising Engineer Ashraf Uddin said, "We import coal every month using six to seven mother vessels, each carrying around 60,000 tonnes. Due to the navigability crisis, we now need 150 to 180 lighter vessels to bring coal from Kutubdia. Each lighter takes at least two days to reach the plant, which raises costs and affects power generation."

Payra port Chairman Rear Admiral Masud Iqbal acknowledged the crisis, saying, "The channel's maintenance dredging has been insufficient, leaving it too shallow for larger vessels to navigate.

He added that a detailed project proposal, including hiring a capable dredging company and purchasing two dredgers, has been submitted to the government and is awaiting approval from the Executive Committee of the National Economic Council.

Payra port Assistant Director (Administration) Md Azizur Rahman said, "Several projects are underway to maintain navigability and ensure vessel safety, including dredging the Rabnabad channel and procuring two dredgers to reduce long-term costs."

He added that port infrastructure is progressing: the first terminal's jetty is 97 percent complete, the yard 96 percent, and a six-lane road 86 percent finished. Two bridges over the Andharmanik River, costing Tk 950 crore, are expected to be completed by February 2026, connecting the terminal directly with the Dhaka-Kuakata highway.

Development of the terminal on the Rabnabad River began on October 27, 2022. Initially approved in 2019 at Tk 3,982 crore, the project cost has risen to Tk 5,427 crore, and the completion deadline has been extended to December 2026, turning an originally planned 18-month project into a seven-year undertaking.