Hotels and resorts in major tourist destinations across Bangladesh are reporting 60 percent to 80 percent occupancy this December, showing strong demand and a busy holiday season.

Business owners said that political instability last December had caused a drop in tourism, but this year, visitor numbers have returned to normal levels.

The peak tourism season in the country runs from November to April. According to the Bangladesh Bureau of Statistics, tourism accounted for 3 percent of the country's GDP and 8 percent of total employment in the fiscal year 2018-19.

Abdul Awal, group director of sales and marketing at Sea Pearl Beach Resort in Cox's Bazar, said the resort is seeing a seasonal increase in business, with occupancy around 60 percent, similar to 2023.

"2024 was an exception due to political uncertainty, but the current performance reflects a return to normal patterns," he said.

Awal added that most visitors stay for two days, as Cox's Bazar has limited attractions beyond the beach. "Group bookings, conventions, and incentive travel continue to be our strongest business segments," he said.

Rana Karmakar, operations manager of Mermaid Beach Resort in Cox's Bazar, said that despite the upcoming election, business is doing well this December. "Reservations are better than in 2024, which was an unpredictable year due to significant political uncertainty. Compared to 2023, reservations are also strong and broadly similar," he said.

Karmakar added that occupancy in December is currently around 80 percent, similar to December 2023, which is generally satisfactory.

However, he noted a decline in out-of-house restaurant guests, particularly foreign tourists. "Earlier, many tourists who could not stay at the resort would eat at the restaurant at least once during their visit, but that is no longer the case," he said.

He attributed this to reduced tourist movement caused by security concerns and poor road conditions.

Md Bahar Khan, senior supervisor of The Palace Luxury Resort in Bahubal, Habiganj, said that average occupancy this December is around 60 percent, slightly lower than December 2023.

"We are seeing a lower response this year due to political uncertainty and ongoing road construction on the Dhaka–Sylhet route, which has increased travel time," he said. Despite this, he described business as moderately stable during the peak season.

Imranul Alam, managing director of Tour Group Bangladesh, which runs resorts and other tourism businesses across the country, said business is performing reasonably well, but profits have dropped to about one-third of the level recorded in 2023.

"Although there is a demand for travel to Saint Martin's Island, the shortage of ship tickets and long, uncomfortable journeys have significantly discouraged tourists," he said.

Alam added that many regular visitors who previously travelled every year are no longer coming and have discouraged their friends and family based on recent experiences.

He further said, "The journey to Saint Martin's now takes more than six hours by sea, in addition to long boarding and disembarkation times and severe congestion at the jetty. These issues have reduced tourist mobility and shortened travel plans."

"Visitors are becoming more selective, opting for higher-end resorts to justify the increased travel expenses," he added.

"Overall occupancy for Sajek resorts in December is around 70 percent," said Suparna Deb Barman, president of the Cottage Malik Samity of Sajek, a forum of resort owners.

"Sajek is no longer empty at any time, with visitors coming even on weekdays. Fridays and Saturdays are the busiest, but tourist activity continues throughout the week. On dates like December 26 and 27, accommodations are fully booked," Barman said.

She added, "The season here gradually starts in August and lasts through February, with activity peaking during this period."

Md Rafeuzzaman, president of the Tour Operators Association of Bangladesh, said, "This December is performing better than December 2024, with bookings close to a normal season."

He added, "Although political tensions ahead of the upcoming election have slowed tourism, the sector is expected to improve further in 2026 once a new government is in place."

Bangladesh has moved a step closer to entering the global space economy, commissioning a feasibility study on whether the country can build its own rockets, satellites, and even a dedicated space industrial park.

According to the Bangladesh Space Research and Remote Sensing Organisation (SPARRSO), the agency signed an agreement last month with Development Design Consultants Limited to conduct the study at a cost of about Tk1.35 crore.

SPARRSO officials said the consultant will prepare a full feasibility report by June 2026, along with the project's preliminary design. The study will cover three core components: a rocket manufacturing and launch station; a satellite manufacturing industry with an Assembly, Integration, and Test (AIT) laboratory; and a space industrial park.

Officials added that the initiatives aim to build long-term space capability, strengthen self-reliance, boost foreign revenue, develop skilled talent, and raise Bangladesh's profile in global space science and tap into the emerging trillion-dollar space economy.

Mohammad Shohidul Islam, principal scientific officer at SPARRSO, said the first objective is to begin rocket manufacturing by importing components and assembling them locally. "Once sufficient expertise develops, Bangladesh could build its own rockets," he said.

He noted that neighbouring India earns foreign currency by launching rockets for other countries. "A launch station could offer Bangladesh similar opportunities."

He added that investment could come from China, Japan, and South Korea, and said discussions have already begun with a Chinese company. A US-based private firm has also agreed to work with SPARRSO on promoting awareness of the space industry.

Subrata Kumar Aditya, professor of electrical and electronic engineering at Dhaka University, said the project is highly ambitious but not impossible.

"It will require significant funding and foreign investment, but investment alone is not enough – we also need advanced technology from abroad," he said. "As far as I know, SPARRSO is planning to collaborate with China. If China or another country supports the initiative, it can be implemented."

Rockets and launch station

SPARRSO officials said a feasibility study is underway for national rocket manufacturing and a launch station. The goal is to develop indigenous launch vehicles capable of placing local and foreign satellites into orbit at lower cost.

According to the contract, seen by TBS, the consultant represented that they have the "required skills, and personnel and technical resources" for the feasibility study.

Confirming this development, SPARRSO's Shohidul Islam said coastal areas in Patuakhali's Kalapara, Chattogram's Anwara, and the Sundarbans are under initial consideration. "The finalisation of the site will follow the feasibility study, which will also determine total costs and guide the government investment proposal," he added.

The facility would boost technological autonomy, strengthen national space security, and support Bangladesh's sovereign claims in orbital slots. Once operational, the station could generate foreign revenue through commercial launches and support scientific missions, officials believe.

Satellite industry, laboratory

SPARRSO plans a satellite manufacturing industry to modernise Bangladesh's satellite capabilities. The facility will handle design, fabrication, integration, testing, and validation of multiple satellite classes.

The initiative aims to reduce reliance on foreign suppliers, lower procurement costs, and create opportunities for export-oriented production of space-grade components. The AIT laboratory will serve sectors including telecommunications, disaster management, agriculture, the blue economy, forestry, and space weather research.

It will also train skilled manpower, foster innovation in universities and research institutions, and position Bangladesh in the trillion-dollar global space market.

Space industrial park

SPARRSO aims to develop a high-tech space industrial park to attract domestic and foreign investment in research, engineering, and commercial space applications. The park will serve as an innovation hub for aerospace manufacturing, component suppliers, testing facilities, and start-ups.

It is expected to create significant employment and foster international collaborations through joint ventures and R&D programmes. The park will offer services in satellite data, navigation, energy management, marine tracking, aviation safety, telecommunications, and sustainable urban planning.

Shohidul Islam said sites with transport links, logistics, gas, and water are being considered, with the Mirsarai Economic Zone and Madhupur in Tangail under review.

Why Bangladesh needs space industry

SPARRSO officials said the global space industry has grown into a trillion-dollar market, with over 11,000 satellites in orbit. Bangladesh holds significant potential, and sustainable development today is closely linked to space technology.

They noted that establishing a space industrial park faces challenges, mainly skilled manpower, funding, and foreign investment, but said the project is achievable. The park could attract investors to produce satellites and components, as the country already has a pool of university graduates.

Experts said satellites are essential for modern communication, information gathering, research, and national security. Orbiting Earth, they collect signals, images, and data for diverse applications, including telecommunications, weather forecasting, agricultural monitoring, navigation, scientific research, and national security.

Bangladesh Satellite-1, launched on 11 May 2018, is currently used for television broadcasting.

Nur Hossain Sharifee, chief scientific officer at SPARRSO, said Bangladesh currently relies on global satellites to monitor agriculture, disasters, floods, vehicle and aircraft movements, and changes in forests, rivers, and land.

"Free satellite data is available, but the limited budget restricts access to high-quality, real-time information. Low-cost data cannot support timely disaster preparedness, as detailed data can take seven to 15 days to obtain. This makes domestic satellites essential for national and commercial use," he said.

Sharifee added that a single set of high-resolution data costs around Tk40 crore. The lack of real-time weather data has often caused significant losses. Owning domestic satellites would allow Bangladesh to access such data more affordably and efficiently.

A SPARRSO official added that launching a satellite from Europe costs about Tk2,000 crore, whereas building and launching one domestically could cost less than half. Rockets are needed to place satellites into orbit, and initially, components will be imported and assembled locally to produce launch vehicles.

Currently, the US, Russia, France, Japan, China, UK, India, Israel, Iran, Canada, Italy, South Korea, and the European Union have both rocket and satellite manufacturing capability.

Officials said the initiative was first proposed by the current SPARRSO chairman, Md Rashedul Islam, and was taken forward after Md Ashraf Uddin, secretary of the defence ministry, expressed interest and support.

They said the feasibility work was awarded to Development Design Consultants Limited, a firm with experienced international advisers in space research. The company was selected from seven bidders, they added.

Garment exports to non-traditional markets declined by 3.19 percent year-on-year to $2.67 billion in the July–November period of the current fiscal year.

Due to higher reciprocal tariffs in the USA, other major players are exporting higher volumes of garment items to non-traditional markets, which is why exports from Bangladesh declined, local exporters said.

Bangladesh considers all markets as non-traditional or emerging markets except the EU, the USA, Canada and the UK, according to data from the Export Promotion Bureau, compiled by the Bangladesh Garment Manufacturers and Exporters Association.

During the same period, Bangladesh's RMG exports to the USA rose 3.06 percent year-on-year to $3.22 billion, representing 19.98 percent of total apparel shipments.

Exports to Canada and the United Kingdom also showed positive momentum, posting year-on-year growth of 6.51 percent and 3 percent, respectively.

Around $554.47 million worth of garments were shipped to Canada, while $1.85 billion went to the United Kingdom.

The EU remained Bangladesh's largest export destination for RMG, accounting for 48.57 percent of total exports in this category.

Export earnings from the EU stood at $7.83 billion, down 1.03 percent year-on-year.

According to EPB data, overall apparel exports in the July–November period reached $16.13 billion, reflecting a 0.09 percent increase compared to the previous year.

In terms of product category performance within the RMG basket, knitwear recorded a 1 percent decrease, indicating modest but stable performance.

Woven garments performed comparatively better, posting a 1.44 percent increase during the period.

Gold discounts in India widened this week as demand fell despite the wedding season after prices scaled record highs, while Chinese demand remained muted amid volatility and high spot prices.

Indian dealers were offering a discount of up to $34 per ounce to official domestic prices this week, inclusive of 6 percent import and 3 percent sales levies, wider than last week's discount of up to $22.

Jewellers haven't been buying (gold) as store footfalls have dropped sharply due to the price rally, a Mumbai-based bullion dealer with a private bank said.

Domestic gold prices hit a record high of 132,776 rupees per 10 grams on Friday.

"Rising prices are really killing the wedding-season vibe. Buyers just aren't willing to shop at these highs," a Mumbai-based jeweller said.

Weddings are a key driver of gold demand in India, with bullion widely gifted by family and friends.

In top consumer China, bullion traded anywhere from discounts of $20 an ounce to premiums of $10, compared with the global benchmark spot price.

"Physical demand remains soft and volatile (in China), as gold prices reach record highs and discounts deepen. The recent VAT (value-added tax) adjustment has increased costs for jewellers and further weighed on retail demand," said Bernard Sin, regional director- Greater China, MKS PAMP.

On November 1, Beijing cut a VAT exemption for certain gold purchased through the Shanghai Gold and Shanghai Futures exchanges.

Gold prices held near a seven-week high on Friday, supported by expectations of more interest rate cuts next year after the US Federal Reserve pushed back against hawkish market bets.

In Singapore , gold was sold at premiums of $1.5 to $3.50 this week, while in Hong Kong it traded from a $0.5 discount to a $2.5 premium.

In Japan , bullion traded at discounts of up to $5.5 to a $1 premium over spot prices amid slow demand, with retail shops holding smaller quantities and investors booking profits ahead of the New Year holidays.

Bangladesh took a step towards its first privately led submarine cable project yesterday as the Bangladesh Private Cable System (BPCS) Consortium signed an agreement with Nokia to supply Submarine Line Terminal Equipment (SLTE).

The deal was signed at a ceremony held at a hotel in Dhaka, a development industry insiders described as a milestone for private-sector involvement in the country's international connectivity infrastructure.

On behalf of the BPCS Consortium, the agreement was signed by Aminul Hakim, chief executive officer of Metacore Subcom Limited; Arif Al Islam, managing director and chief executive of Summit Communications Limited; and Md Mashiur Rahman, chief executive of CdnNet Communications Limited. Nokia was represented by Prashant Malkani, head of sales unit at Nokia India, and Suman Prasad, senior sales account director at the company.

Senior Nokia officials, including Jibitesh Nayal, head of emerging business, Rahul Derwani, marketing manager, Mohammad R Islam, account manager, and Christopher Samuel, head of sales at Nokia Bangladesh, were also present.

Several foreign diplomats attended the event, including European Union Ambassador Michael Miller, Finnish diplomat to India Antti Herlevi, and representatives from the Japanese Embassy, highlighting the project's international importance.

Speaking at the event, consortium officials said Bangladesh's current bandwidth consumption stands at around 9,000 gigabits per second (Gbps). Demand is expected to rise sharply to nearly 20,000 Gbps by mid-2027 and to about 50,000 Gbps by 2030, increasing the need for private investment in submarine cable infrastructure.

The consortium has already invested around Tk600 crore in the project and plans to spend a further Tk1,200 to Tk1,300 crore to launch three cable pairs after June 2026.

At present, more than 60% of Bangladesh's bandwidth is sourced from India through international terrestrial cables, leading to a significant outflow of foreign currency. The planned Singapore-Cox's Bazar route, with three cable pairs, is expected to reduce this dependence and move the country closer to bandwidth self-sufficiency.

Officials said Nokia's SLTE technology would allow lower power consumption, reduce space requirements in data centres and improve network management, helping to cut operational costs. Using Nokia equipment at both cable landing stations is also expected to ensure a high level of cyber security.

They added that these efficiencies could bring long-term benefits for consumers, including more affordable internet services as capacity increases and costs fall.

Among the four state-run banks, the financial health of Janata Bank has deteriorated rapidly over the years due to massive loan irregularities and scams, while Sonali Bank is on a recovery mode thanks to a cautious approach to lending.

A decade ago, Janata Bank lost Tk 3,359 crore in the AnonTex Group scam, yet learned little and continued to overlook risky practices. In 2024, its loan exposure to Beximco reached around Tk 25,000 crore, crossing the single borrower limit, and a large chunk of it defaulted later.

But the trajectory of Sonali Bank differs.

After several lending scandals, including the largest in its history, worth Tk 2,700 crore in 2012, the state lender tightened its lending strategy and adopted more disciplined risk management.

According to performance reports submitted to the central bank, Sonali Bank shows the strongest financial health among the four state-run banks.

Its non-performing loan ratio, capital adequacy, large-loan concentration, cash recovery from bad loans, and liquidity position all outperform its peers.

Janata Bank, in contrast, faces a critical situation. Rupali Bank and Agrani Bank are also facing a crisis with high non-performing loans, capital shortfalls, large-loan concentration, and other weaknesses.

Since 2007, the Bangladesh Bank (BB) has set biannual performance-improvement targets for the four state-owned commercial banks.

These targets include cash recovery from defaulters, reduction of defaulted loan ratios, strengthening the capital base, credit growth, and profitability.

At the end of June this year, non-performing loans (NPLs) at Janata Bank stood at Tk 72,107 crore, representing 70.84 percent of its disbursed loans and posing a threat to its stability.

Between January and June this year, the bank's bad loans rose by Tk 4,218 crore. Rupali Bank and Agrani Bank also face severe challenges, with NPL ratios of 44.0 percent and 40.55 percent, respectively.

As of September this year, Sonali Bank maintains the lowest NPL ratio at 20.98 percent, making its asset quality relatively stronger, though still high by international standards.

All four state-run banks are facing large capital shortfalls caused by the high volume of bad loans. A capital shortfall indicates a bank cannot maintain the minimum regulatory capital against its risk-weighted assets.

As of June this year, Janata Bank was in the most precarious position, with a capital shortfall of Tk 65,093 crore, far higher than its peers and signalling a major solvency issue.

Agrani Bank and Rupali Bank reported shortfalls of Tk 23,240 crore and Tk 18,054 crore, respectively.

By contrast, Sonali Bank has a manageable shortfall of Tk 3,268 crore.

Between January and June, capital shortfalls declined at Sonali Bank and Agrani Bank but increased at Rupali Bank and Janata Bank.

Recovery efforts remain weak relative to the scale of bad loans.

According to the performance report analysis, Sonali Bank recovered Tk 580 crore in cash from defaulted and written-off loans during January to June, the highest among the four banks.

Agrani Bank and Rupali Bank recovered Tk 390 crore and Tk 350 crore, respectively, while Janata Bank, despite having the largest NPL volume, recovered just Tk 267 crore.

For the banks, a high concentration of loans among a few borrowers poses a systemic risk.

Janata Bank reported the highest concentration, with 76 percent of funded loans tied to 33 borrowers.

Rupali Bank has 63 percent tied to 32 borrowers, Agrani Bank 44 percent among 19 borrowers, and Sonali Bank the lowest concentration at 9 percent among five borrowers, according to the report.

In terms of liquidity, Sonali Bank holds Tk 84,157 crore as of August, indicating a strong ability to meet withdrawals and funding needs.

Liquidity at Agrani Bank, Rupali Bank, and Janata Bank is much lower, at Tk 16,541 crore, Tk 12,312 crore, and Tk 6,300 crore, respectively.

Janata Bank's low liquidity, combined with its capital shortfall, leaves it highly vulnerable, according to industry insiders.

Past loan irregularities, scams, and politically influenced lending under the previous government have undermined the financial health of Janata Bank, Agrani Bank, and Rupali Bank.

In contrast, a cautious lending policy following the Hallmark loan scam has helped Sonali Bank strengthen its position, according to industry sources.

Md Shawkat Ali Khan, managing director and CEO of Sonali Bank, told The Daily Star last week that since the Hallmark scam, the bank has invested more cautiously.

"Loans are no longer extended indiscriminately. In addition, priority is being given to the SME and agriculture sectors. These factors have contributed to the improvement in the bank's financial health," he said.

Regarding Hallmark Group recovery, he said the bank has identified and taken possession of 134 acres of Hallmark's land and is exploring ways to sell the assets.

"We have already spoken with Bida [Bangladesh Investment Development Authority], so they can bring in foreign buyers and facilitate the sale. We have also proposed that the government consider taking over the land," he added.

Hallmark's current liabilities at Sonali Bank total Tk 2,500 crore, with only Tk 13 crore recovered in cash so far.

"In some areas, we improved in the June quarter, but in some we failed," said Kazi Md Wahidul Islam, managing director and CEO of Rupali Bank.

"We are trying to reduce the bad loans," he commented, adding that the bank recovered a significant amount of bad loans in the June quarter.

The Daily Star approached the managing directors of Agrani Bank and Janata Bank for comment, but they did not respond till the filing of this report yesterday evening.

Bangladesh's spinning industry is in a "severe survival crisis" due to a surge in dumped foreign yarn, rising production costs and intensifying global competition, industry stakeholders warned today.

Speaking at a press conference at the National Press Club, mill employees under the banner "Workers, Employees, and Officials Employed in the Spinning Industry"appealed for urgent policy support, urging the government to impose anti-dumping duties and introduce safeguard measures to protect the domestic sector from further decline.

Engineer Azhar Ali, chief operating officer of Salma Group, said many exporting countries offer heavy subsidies to their own yarn manufacturers, allowing them to export yarn at prices significantly lower than Bangladesh's production costs.

"This situation is causing local yarn to lose competitiveness, while the domestic market is being flooded with imported yarn sold at "dumping-level prices," he said.

Azhar further noted that a combination of the post-Covid economic slowdown, the Ukraine war, the dollar crisis and sharp increases in gas and electricity tariffs has forced nearly 40% of the country's spinning mills to shut down in recent years.

"As a result, almost one lakh workers have lost their jobs, while the mills still in operation are running at only 50-60% of their capacity," he added.

Presiding over the event, Ruhul Amin, executive director of Greentex Composite Mills Ltd, said, "Persistent dumping of foreign yarn is rapidly eroding the market share of local producers. If immediate preventive measures are not taken, the country's apparel sector risks collapsing."

Industry insiders said the sector urgently needs policy support to stabilise production and regain competitiveness.

They called for incentives for garment exporters using local yarn, protective duties on imports, reinstatement of the EDF facility, increased use of local raw materials, and incentives for recycled products.

They also sought low-interest, long-term loans for machinery upgrades and measures to offset reduced import capacity caused by the taka's depreciation.

Azhar Ali said although gas and electricity prices have risen by 350% over three consecutive adjustments, product prices in the textile and backward linkage sectors have not been revised accordingly.

He called for a 30% rebate on utility bills and a two-year emergency stimulus for export-oriented factories.

The press conference was attended by several industry representatives, including Shahinul Haque, director (operations) at Mosharraf Composite Group; Abul Kalam Azad, director at Armada Group; Shantimoy Dutta, advisor at Ahmed Group; and ABM Sirajul Islam, director at Jamuna Group.

China plans to expand exports and imports next year as part of efforts to promote "sustainable" trade, a senior economic official said on Saturday, state broadcaster CCTV reported.

The trillion-dollar trade surplus posted by the world's second-largest economy is stirring tensions with Beijing's trade partners and drawing criticism from the International Monetary Fund and other observers who say its production-focused economic growth model is unsustainable.

"We must adhere to opening up, promote win-win cooperation across multiple sectors, expand exports while also increasing imports to drive sustainable development of foreign trade," Han Wenxiu, deputy director of the Central Financial and Economic Affairs Commission, told an economic conference.

China will encourage service exports in 2026, Han said, pledging measures to boost household incomes, raise basic pensions and remove "unreasonable" restrictions in the consumption sector.

He restated the government's call to rein in deflationary price wars, dubbed "involution", where firms engage in excessive, low-return rivalry that erodes profits.

The IMF this week urged Beijing to make the "brave choice" to curb exports and boost consumer demand.

"China is simply too big to generate much (more) growth from exports, and continuing to depend on export-led growth risks furthering global trade tensions," IMF Managing Director Kristalina Georgieva told a press conference on Wednesday.

Economists warn that the entrenched imbalance between production and consumption in the Chinese economy threatens its long-term growth for the sake of maintaining a high short-term pace.

Chinese leaders promised on Thursday to keep a "proactive" fiscal policy next year to spur both consumption and investment, with analysts expecting Beijing to target growth of around 5%.

Bangladesh Bank has purchased a significant amount of US dollars from local banks as part of its ongoing efforts to stabilise the foreign exchange market and support the flow of remittances and repatriate export earnings.

On Thursday (December 11), the central bank acquired approximately $149 million from 16 banks through a ‘Multiple Price Auction’ system.

Bangladesh Bank Executive Director and spokesperson, Arif Hossain Khan, confirmed the transaction.

“A total of $149 million dollars were purchased from 16 banks through the Multiple Price Auction. The dollar rate during this period was determined between Tk 122.25 and Tk 122.29 per dollar,” he stated.

With this latest acquisition, the total amount of foreign currency purchased by the central bank through the auction mechanism in the current Fiscal Year (FY) 2025-26 has reached $2.663 billion.

Bangladesh Bank initiated the dollar purchasing process via auctions on July 13 and has since accumulated this substantial amount of foreign currency as part of the new policy.

Mexico has imposed steep new tariffs on a wide range of Asian imports, marking a sharp break from its long-standing pro-free-trade approach — and putting India among the key exporting nations affected by the move.

In a significant policy shift, Mexico's Senate has approved a new tariff regime that raises duties, in some cases up to 50%, on more than 1,400 products imported from countries that do not have a formal trade agreement with Mexico, Reuters reported.

The list of targeted nations includes China, India, South Korea, Thailand and Indonesia.

The upper house cleared the bill with 76 votes in favour, five against and 35 abstentions, brushing aside protests from domestic industry bodies and strong objections from China. The lower house had already approved the measure.

Beginning next year and expanding through 2026, the new rates will apply to a wide swath of industrial inputs and consumer goods, including automobiles and parts, textiles, apparel, plastics, metals and footwear.

While select items will face the maximum 50 per cent duty, most products are expected to fall under the 35 per cent bracket.

Why it matters for India

India, which has sought to boost exports of textiles, auto components and engineering goods to Latin America, now faces a significantly more challenging entry into the Mexican market, the second-largest economy in the region and a key North American gateway.

Indian exporters have long leveraged Mexico as a stepping stone to the US, thanks to its integration in North American supply chains.

The tariff hikes threaten to hamper that advantage.

Several Mexican import-dependent manufacturers have warned the government that higher duties on goods from India and other Asian nations will push up production costs and stoke inflation, according to agency reports.

Implications for India and the region

For Indian exporters, the tariff shift could:

Reduce competitiveness in industries such as textiles, leather goods, auto parts and steel.
Push companies to reconsider supply-chain routing through Mexico.
Increase landed costs for Indian firms operating in or supplying to North American value chains via Mexico.

India's commerce Ministry has not issued a statement yet.

Washington's shadow over Mexico's move

Analysts, including those in India tracking Latin American markets, believe Mexico's sudden protectionist turn is closely tied to pressure from the United States ahead of next year's USMCA (United States-Mexico-Canada Agreement) review.

President Claudia Sheinbaum's government is understood to be signalling alignment with Washington's tougher stance on Chinese goods, hoping this might help ease the sweeping US tariffs that have hit Mexico's own exports such as steel and aluminium.

Although Sheinbaum denied the tariffs are linked to US demands, the structure of the new duties strongly mirrors American trade actions, a Bloomberg report noted.

The version passed this week is milder than an earlier proposal, which had sought strict duties across nearly 1,400 tariff lines.

Lawmakers have now reduced the severity of tariffs on about two-thirds of those categories.

Even so, the Mexican finance ministry expects the new levies to bring in nearly 52 billion pesos (₹19,000 crore) in additional revenue next year, money the government says it needs to narrow its fiscal deficit.

Mixed reactions within Mexico

Mario Vazquez, an opposition PAN senator, said that although the tariffs may help certain sectors overwhelmed by cheaper Chinese imports, "they also act as a tax on consumers," and he questioned how the government intends to use the extra revenue.

Emmanuel Reyes of the ruling Morena party defended the bill, arguing that the measure will "strengthen Mexican products in global supply chains and protect jobs in priority sectors."

Local auto groups especially supported the move, warning that China's rapid rise — now accounting for 20 per cent of Mexico's auto market, up from almost nothing six years ago — could threaten Mexico's domestic manufacturing base.

Under the new rules, imported Chinese cars will face the steepest duty at 50 per cent.

More changes ahead

The legislation also gives Mexico's Economy Ministry sweeping authority to revise tariffs on non-FTA countries at will, enabling rapid adjustments ahead of the USMCA review.

This new flexibility could mean more fluctuations in duty structures for Indian exporters.

With the US and Canada both tightening scrutiny on Chinese supply-chain routing, Mexico's move underscores a broader North American shift toward protectionism.

The interim government has decided to continue the value-added tax (VAT) exemption on metro rail tickets while also reducing import duties on dates to ease consumer costs ahead of the upcoming Ramadan.

The decisions were finalised today (11 December) at a meeting of the Advisory Council held at the Chief Adviser's Office in Tejgaon, presided over by Chief Adviser Muhammad Yunus.

Later in the afternoon, Press Secretary Shafiqul Alam briefed reporters at the Foreign Service Academy and said the government will forgo around Tk40 crore in annual revenue by extending the VAT waiver for metro rail tickets.

"Metro rail has already become a transformative mode of transport for Dhaka commuters. Considering its public benefit, the government decided to keep the VAT exemption in place," he said.

In January, the National Board of Revenue (NBR) extended the VAT exemption until 31 December. Today's decision reaffirms and further strengthens that stance.

According to current VAT laws, tickets for any air-conditioned railway service carry a 15% VAT. Although metro rail is a fully air-conditioned mass transit system, the government has exempted it from VAT from the very beginning following requests from Dhaka Mass Transit Company Limited (DMTCL).

Alongside this, the government has reduced duties on date imports to help stabilise prices during Ramadan. The second half of February is expected to mark the beginning of the holy month.

Press Secretary Shafiqul Alam said the existing 25% import duty on dates has been lowered to 15%. Overall duties, which previously totaled 52.2%, will now come down to 40.7% after the revision.

He noted that the reduction aims to ensure an adequate and affordable supply of dates, one of the most consumed items during Ramadan.

With both decisions, the government aims to balance revenue considerations with public welfare, supporting urban commuters as well as low- and middle-income consumers preparing for the fasting month.

Foreign direct investment (FDI) is essential to curb inflation in Bangladesh, Lutfey Siddiqi, special envoy to the chief adviser on international affairs, has said.

"Foreign investment is a 'mathematical reality' for Bangladesh's economy," he said at a conference titled "Future Outlook of Bangladesh Economy: FDI, Financial Reforms and LDC Graduation", in Chattogram yesterday (12 December).

Explaining the term, he said, "Bangladesh has vast investment opportunities and a young, capable workforce. To align these two, foreign investment is indispensable."

He warned that without FDI, the only option is to print money. "This will inevitably drive up inflation, increase debt, and keep interest rates high. There is no room for debate. Bangladesh's longstanding failure to attract FDI is a matter of shame."

Siddiqi also cautioned that the largest portion of the current government budget is spent on interest payments. Around 21% of the National Board of Revenue's total revenue is consumed by interest alone, amounting to roughly Tk14 crore every hour.

"Borrowing is not inherently bad, but it must be channelled into productive investment rather than mere expenditure," added Lutfey Siddiqi.

To illustrate the impact of inefficiency and corruption on the economy, he cited a garment factory operating in both Vietnam and Bangladesh.

Despite paying nearly 50% higher wages in Vietnam, the factory earns more profit there. In Bangladesh, he said, half of the lost potential profit is eaten up by inefficiencies in logistics, roads, and port operations, while the remaining half disappears into corruption.

"These problems are solvable, and we must not confine reforms to institutional discussions. The entire system needs transformation," he said.

The conference was organised by the Chattogram branch of the Institute of Cost and Management Accountants of Bangladesh (ICMAB) at a hotel in the port city.

NBR Chairman Md Abdur Rahman Khan and Eastern Bank's Additional Managing Director Ahmed Shaheen attended as special guests.

In his speech, the NBR chairman highlighted government measures on tax policy, structural reforms, and steps to attract foreign investment.

Keynote papers were presented by Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue (CPD), and Professor SM Shohorabuddin of the Finance Department at Chattogram University.

Netflix says it must acquire Warner Bros Discovery to compete with YouTube, but antitrust experts doubt regulators will buy that argument.

The streaming giant's $72 billion takeover of Warner Bros Discovery's studios and HBO Max will face scrutiny from US and global regulators, given its scale and the combined 428 million subscribers.

Netflix insists the deal is needed to challenge Alphabet's YouTube, which media analysis firm Nielsen ranks as America's most-watched TV distributor. But attorneys say the Justice Department is unlikely to see Netflix and YouTube as interchangeable rivals, given their different content, audiences and business models.

"Netflix is trying to say it competes with YouTube because people only watch a certain amount of content a day," said Abiel Garcia, antitrust partner at Kesselman Brantly Stockinger. "That argument ultimately fails."

Netflix spends billions of dollars on scripted original movies and series like "Stranger Things" and "KPop Demon Hunters". It frequently dominates Nielsen's ranking of most-streamed original series, accounting for eight of the top 10 originals in a recent ranking. Subscribers pay $7.99–$24.99 monthly, while ads remain a small but growing revenue stream.

YouTube, by contrast, thrives on user-generated content and advertising built on music videos, how-to tutorials and influencers. It commands more viewing time than Netflix or traditional TV, powered by creators like MrBeast, with more than 450 million subscribers, top recording artists and children's hits like Cocomelon.

In October, YouTube held 12.9 percent of streaming viewership, compared with Netflix's projected 9 percent share once combined with HBO Max post-merger.

REGULATORS WILL KNOW THE DIFFERENCE

The DOJ is not likely to view those videos as a substitute for Netflix shows and movies, experts said.

"Netflix is going to have a difficult time making arguments that YouTube is substitutable for the kind of content that's on HBO Max and Netflix," said Robin Crauthers, a partner at McCarter & English and former DOJ antitrust attorney.

While companies often seek to defend their mergers by pointing to competition from a broad universe of established and emerging players, antitrust enforcers are experienced in finding the ways that mergers quash competition in distinct sub-markets.

For example, the Federal Trade Commission convinced a court that Whole Foods Market's acquisition of rival Wild Oats Markets reduced competition among "premium natural and organic supermarkets," despite Whole Foods' argument that it competes with conventional grocery chains.

The FTC also successfully challenged the merger between US handbag and accessories maker Tapestry and rival Capri as decreasing competition in the "accessible luxury" market.

The judge who blocked the Tapestry deal relied on documents showing the companies themselves thought of accessible or affordable luxury as a valid category, contradicting their argument at trial that affordable luxury was not a well-defined part of the industry.

NETFLIX FACES DOCUMENT SCRUTINY

Because of recent reforms to the merger clearance process, Netflix will have to hand over more of its internal competition analyses sooner, said former FTC antitrust attorney Shaoul Sussman.

"That will definitely give the government a leg up in the investigation," said Sussman, of the law firm Simonsen Sussman.

If Netflix's documents do not cite YouTube as a major competitor, or if they focus on categories that exclude YouTube, such as paid subscriptions, that will undermine the company's argument, attorneys said.

Netflix has also pitched the deal as bringing down prices for the vast majority of HBO Max subscribers, who are already Netflix customers, by allowing the company to bundle the two products, Reuters reported last week.

But the DOJ is very skeptical of claims that mergers bring cost savings that will find their way back to consumers, Crauthers said, and will also consider whether the deal would allow Netflix to raise prices on subscribers who do not take both services.

A divided US Federal Reserve lowered interest rates Wednesday for a third consecutive time this year, but signaled that it could hold off further reductions in the coming months.

Fed Chair Jerome Powell said the central bank is "well positioned to wait and see how the economy evolves from here."

The Fed's statement on its decision also brought back language used in late-2024 to signal a pause in more rate cuts.

Powell stressed that officials are in a good position to determine the "extent and timing of additional adjustments based on the incoming data, the evolving outlook and the balance of risks."

Wednesday's reduction by a quarter percentage point brings rates to a range between 3.50 percent and 3.75 percent, the lowest in around three years, a move aligned with market expectations.

The Fed penciled in one more rate cut next year, and flagged heightened risks to employment as it announced its latest decision.

But a rift within the central bank deepened with three officials voting against the modest reduction.

Chicago Fed president Austan Goolsbee joined Kansas City Fed president Jeffrey Schmid to support keeping rates unchanged. Fed Governor Stephen Miran again backed a bigger, half-percentage-point cut.

The Fed's rate-setting committee has 12 voting members -- including seven members of the board of governors, the New York Fed president and a rotation of reserve bank presidents -- who take a majority vote in deciding on rates.

Powell noted that some disagreement was expected, pointing to tensions between inflation risks and a weakening jobs market: "It's a close call."

"Inflation is well above the Fed's target, but the job market appears to be softening," said Mortgage Bankers Association chief economist Mike Fratantoni in a statement.

"Thus, there is ammunition for both sides of the debate" within the Fed, he added.

For now, Powell said, the Fed is "in the high end of the range of neutral" rates, with neutral being a level that neither stimulates nor restricts economic activity.

The Fed has previously described interest rates as "modestly restrictive" -- "neutral" could suggest less justification to lower levels quickly.

"We expect the Fed will want to pause for a while to allow time to for this and prior cuts to feed through the economy," said economist Ryan Sweet of Oxford Economics.

Powell added that the US economy needs several years where wages are higher than inflation for "people to start feeling good about affordability."

On Wednesday, Fed officials also lifted their 2026 growth forecast, while easing inflation expectations and keeping their unemployment rate projection unchanged.

These forecasts could shift as the central bank grapples with a delay in federal economic data releases after a record-long government shutdown.

This week's gathering is the last before 2026, a year of key changes for the bank. A new chief will arrive after Powell's term ends in May, while political pressure mounts.

On Wednesday, Trump said the Fed could have "at least doubled" its rate cut.

The president also signaled in a Politico interview published Tuesday that he would judge Powell's successor on whether they immediately slash rates.

Interviews for his choice are entering the final stages, and Trump's chief economic adviser Kevin Hassett is among top contenders.

Miran's term expires in January, creating an opening among the Fed's top leadership. Trump has sought to free up another seat by attempting to fire Fed Governor Lisa Cook too.

Cook has challenged her ousting and the case remains before the courts.

EY-Parthenon chief economist Gregory Daco noted that Hassett's potential appointment and a "more hawkish rotation of voting members" focused more on taming inflation means a growing dispersion in views.

"Policy deliberations are likely to become even more divided next year," he said.

Dhaka's troubled public transport system is heading for a structural overhaul as the government moves to set up a World Bank-backed Public Transport Fund (PTF) to finance electric buses and impose discipline on a sector long marked by disorder, pollution and unsafe services.

The fund, to be established by the Dhaka Transport Coordination Authority (DTCA) under the Bangladesh Clean Air Project Phase-1, will support the rollout of 400 electric buses in Dhaka and later other major cities, while shielding operators from financial volatility and enforcing minimum service standards.

Project documents show the Transport Fund will be capitalised with Tk427 crore, alongside Tk244 crore in seed capital to ensure long-term financial sustainability. The fund will pay operators fixed fees, while the government takes responsibility for fares, revenue collection and passenger demand risks.

Alongside this, the government will introduce a scrappage and compensation scheme, allocating Tk85.40 crore to phase out ageing diesel buses and compensate owners moving into the new system.

A senior DTCA official, speaking on condition of anonymity, said the initiative aims to cut greenhouse gas emissions from urban transport and finally implement long-delayed bus sector reform in Dhaka.

"To build support, the DTCA and the World Bank have held several rounds of discussions with private bus operators and owners' associations," the official told The Business Standard.

He added, "The proposal was prepared with the consent of state-run operators, while private operators also want regulation and replacement of old buses with electric ones."

Md Hadiuzzaman, transportation expert and professor of civil engineering at Buet, said many transport initiatives have failed in the past because the sector remains disorderly and politically sensitive.

"Simply fixing compensation mechanisms or fare structures will not resolve the deeper problems," he said. "Public transport is a service sector, but in reality it is shaped by power and influence."

He added, "The success or failure of this initiative will depend largely on how positively influential private sector leaders in transport accept it and how sincerely they cooperate during implementation."

World Bank financing anchors reform model

According to project documents, the Dhaka Bus Modernisation Programme carries a total cost of Tk1,213.40 crore, with Tk1,183.40 crore coming from a World Bank loan and Tk30 crore from the government.

Under the broader transport reform package, the overall project cost stands at Tk2,481.97 crore, of which Tk2,135 crore will be financed by the World Bank.

Officials said the proposal has already been submitted to the Planning Commission for approval.

Under the programme, 400 electric buses will be deployed in line with the Bus Route Rationalisation Plan and operated by franchisees under gross cost contracts.

The DTCA and the Public Transport Fund will retain control over fares and revenue, a move intended to reduce commercial uncertainty and stabilise services.

A state-run asset company, AssetCo, will procure and own the buses and manage maintenance, battery replacement and warranties, separating asset ownership from operations to improve accountability.

Depots, charging, power infrastructure

The project includes three electric bus depots to be upgraded on government-owned land, with sites selected from Kanchpur, Gabtoli, Kalyanpur, Purbachal and Joar Shahara.

Depot development is estimated to cost Tk748.59 crore, largely financed through a World Bank loan.

Officials said feasibility studies have been completed, while detailed designs will be finalised during the implementation phase.

Intelligent systems and digital services

To support contract management and improve passenger experience, Intelligent Transport Systems will be introduced at a cost of Tk170.28 crore.

These systems will include vehicle tracking, automated fare collection, passenger information displays, an operations control centre, data centres and a mobile application.

The app will allow passengers to check schedules, buy tickets, track travel times, submit feedback and report incidents, including gender-based violence.

Capacity building and institutional reform

A Tk138 crore capacity-building programme, mostly funded by an IDA loan, has been earmarked to address institutional gaps and improve governance.

Management consultants will support DTCA staff in service planning, contract design and performance monitoring, while regulatory reforms will strengthen mandates and inter-agency coordination.

Drivers and conductors will receive training on road safety, fuel efficiency and preventing sexual harassment, with incentives planned to encourage more women to join operational roles.

Why Dhaka's transport needs reform

The project proposal highlights Dhaka's severe transport and air quality crisis, with PM2.5 levels hitting 85µg/m³ in 2020, far above global limits. Around 25% of pollution comes from ageing, poorly maintained fossil-fuel vehicles. Over 80% of vehicles emit harmful pollutants, while inefficient public transport worsens congestion, idling and the daily loss of 8.2 million working hours.

It said Dhaka's route-license bus system fuels disorder. Private operators under a net-cost model compete for passengers, encouraging reckless driving, poor maintenance and clustering of nearly 4,000 buses on profitable corridors, leaving many areas underserved.

Monitoring is weak: police-led committees issue licenses, while state-owned BRTC operates independently, limiting coordination. Subcontracting and daily-wage drivers prioritise cash over safety, leaving fleets overaged and poorly maintained.

These flaws, combined with pollution and congestion, make Dhaka one of the world's least liveable cities, with women and vulnerable groups facing heightened safety and accessibility challenges.

Bangladesh's apparel export to the United States, its single-largest market, circumvents tariff tempests and records a double-digit growth of18.64 per cent, the highest among major competitors, in the first nine months of 2025.

According to US official count, the exports grew both in terms of value and volume during the January-to-September period of the current calendar year.

inset-p-1-1Readymade garment exports from Bangladesh during the period singly fetched US$6.42 billion, marking the 18.64-percent growth, according to the data released on December 11 by OTEXA, an affiliate of the US Department of Commerce.

The country had earned US$5.41 billion in the same period of 2024.

During the reporting period, the growth rate also surpassed the global average of 1.74 per cent, placing Bangladesh ahead of main competitors, save Cambodia, though Vietnam sustained top-exporter stand pushing China behind.

During the reporting period, Bangladesh outpaced almost all its major competitors in export growth to the US, its single-largest export destination.

However, exporters say that the OTEXA published the data of September for the shipments made two months back while reciprocal tariffs imposed by the US came into effect on August 7.

And it would take two more months to get "the real picture of US tariff impact when the country might see a downturn in the coming months due to tariff issues".

According to state-owned Export Promotion Bureau (EPB) data, published two months ahead of Otexa data, overall RMG exports have already started facing a downtrend for the past four months since August 2025.

Meantime, during the January -to- September period, Bangladesh shipped 2.07 billion square meters of garments, about 19 per cent higher than 1.73 billion square meters sent in the corresponding period of 2024.

America's overall apparel imports during the period stood at US$60.34 billion, up from $59.31 billion in the corresponding period of last year. Vietnam, during the first nine months of 2025, became leading apparel exporter to the US, shipping RMG items worth US$12.74 billion, accounting for about 13.69-percent growth.

China dropped to the second position with US$8.78 billion worth of apparel shipments with a 29.89-percent year-on-year negative growth, highlighting the effects of elevated tariff barriers and ongoing geopolitical tensions.

Asked about the industry view, Fazlee Shamim Ehsan, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), says Otexa revealed two-month previous data, meaning September data reflected the shipments made early July and onwards.

To get the picture of US tariff impact, he says, it takes two more months when data would revealed for the shipments of August onwards. "There is still growth on the US market and it might not fall much or continue to grow provided a stable political situation with national election in place which will also bring back the buyers' confidence," the industry owner tells The Financial Express.

He looks to a better tomorrow for business. With improving local situation having a stable political government, Bangladesh would likely to get higher chunk of shifted work orders especially from China, he says.

The BKMEA leader, however, notes that Bangladesh is facing challenges in the EU where the economy is undergoing difficulties while major competitors like China have been focusing on that market due to high US tariffs on China's goods.

Exporters say though Chinese orders have been shifting from the US due to high tariffs, China is increasing its share in the EU market aggressively by offering 'much lower prices' to buyers to offset US market-share decline.

Meantime, India's apparel exports rose by 12.81 per cent to US$4.10 billion during the January-to-September period of 2025.

Indonesia recorded a 13.49 -percent increase in apparel shipments to US$3.59 billion, continuing its steady growth as a supplier to the US market. Cambodia bagged 28.47-percent rise in exports, reaching US$3.57 billion, during the period under consideration.

Pakistan also recorded a growth of 14 per cent to bag US $1.80 billion from the US market.

Bangladesh loses around $5 billion every year as patients seek medical treatment abroad, mainly due to a lack of trust in the domestic healthcare system, inaccurate diagnoses and weak service management.

Malik Talha Ismail Bari, managing director and CEO of United Hospital Limited and former senior vice president of Dhaka Chamber of Commerce and Industry (DCCI), revealed the information in his keynote speech at a seminar in Dhaka today (13 December).

The seminar, titled "Building Trust in Bangladesh's Healthcare Sector: Ensuring a Strategic Framework for Quality Control", was held at the DCCI building in Motijheel.

Talha said India is the top destination for Bangladeshis' overseas treatment and around 52% of Indian medical visas are issued to Bangladeshi patients.

In 2024 alone, about 482,000 Bangladeshi patients received medical treatment in India, he said, adding that Thailand, Singapore and Malaysia follow India as preferred destinations.

The keynote paper pointed out that a lack of trust among patients and their families, doubts over proper diagnosis, sudden increases in hospital bills, fear of hidden charges, concerns over counterfeit medicines and substandard equipment push many to believe that seeking treatment abroad is a safer choice.

Experts call for specific planning, financing strategy for healthcare sector

Speakers at the seminar stressed the need for stronger public-private coordination, clear planning and a comprehensive health financing strategy.

Bangladesh's healthcare sector lags behind due to only about 1% of GDP allocation, along with weak infrastructure, limited use of new technologies, shortages of skilled professionals, high treatment costs, management inefficiencies and poor monitoring of existing policies, they said.

Dr Md Zakir Hossain, secretary general of the Bangladesh Association of Pharmaceutical Industries, noted that although Bangladesh has had a health policy since 2011, it has not been updated in the past 14 years.

He said the sector lacks a clear, long-term and coordinated plan defining the roles of government and the private sector, district-wise hospital needs, workforce development and resource allocation.

Dr Zakir emphasised the need for a sustainable long-term health policy with clearly defined public and private roles. He pointed out that patients' out-of-pocket expenses remain very high, partly because of inadequate medicine supply in public hospitals. Ensuring regular medicine availability would significantly reduce patients' financial burden, he said.

He further noted that Bangladesh's healthcare financing is largely dependent on patients' own spending, with no effective health insurance system or strong safety net.

To move away from this fragmented situation, he stressed the urgency of adopting a national health financing strategy and an integrated health delivery policy, clearly outlining the responsibilities of all stakeholders while also raising patient awareness about their rights and entitlements.

In his welcome remarks, DCCI President Taskeen Ahmed noted that due to the absence of an effective health insurance mechanism, individuals have to bear nearly 74% of total healthcare expenditure on their own, posing serious financial risks for low- and middle-income groups.

To ensure a sustainable healthcare system, Taskeen stressed the need for foreign investment, strengthened public-private partnerships, adoption of modern medical technologies, effective policy implementation and efficient management. He also emphasised establishing a strong health regulatory framework to ensure a health-friendly environment for people at all levels.

National Professor AK Azad Khan, president of Diabetic Association of Bangladesh, acknowledged that there have been notable achievements in Bangladesh's healthcare sector but desired quality standards have not been achieved yet. To attain the desired development, he called for stronger government involvement.

He observed that healthcare quality in Bangladesh lags behind developed countries and even neighbouring countries. Though establishing universal health care may not be feasible at present, he stressed on implementing primary healthcare.

Along with the overall management development, decentralisation is also crucial for the betterment of the health sector, he said.

He also highlighted the expansion of digital healthcare to improve rural access, the modernisation of medical education curricula and creating a conducive environment for medical research.

Professor Dr Syed Atiqul Haq, chief consultant at Green Life Center for Rheumatic Care and Research, emphasised that since most citizens rely on public hospitals, there is no alternative to ensuring the highest quality standards in government healthcare facilities, along with transparency and accountability at all levels.

Dr Shafiun Nahin Shimul, professor and director at Institute of Health Economics of University of Dhaka, said the negative approach made by people is the cause of reduced confidence in the healthcare sector.

"We need to ensure behavioral change to build confidence. We have to strengthen the overall medical system. If we are able to give primary medical services to our own people, patients will not go outside for treatment. Digitalisation, technology use will increase patients' confidence.

Dr Md Mustafizur Rahman, senior scientist at Infectious Diseases Division of icddr,b, shared that icddr,b provides diarrheal care to nearly 300,000 patients annually, and its model could be replicated elsewhere.

He also mentioned ongoing work on cancer diagnostic genomics and expressed optimism that a dengue vaccine could be available within the next two years.

Stocks edged higher yesterday, reversing recent losses, as optimism about developments ahead of the forthcoming national election lifted investor sentiment.

However, despite the rise in share prices across most scrips on the Dhaka Stock Exchange (DSE), turnover, a key indicator of market activity, fell as overall investor participation remained muted.

According to DSE data, the benchmark DSEX index gained 21.98 points to close at 4,963. The DSE Shariah Index added 2.74 points to end at 1,034, while the DS30 blue-chip index advanced 4.19 points to finish at 1,903. Turnover declined by 13% to Tk463 crore. Of the securities traded, 262 advanced, 64 declined, and 66 remained unchanged, according to the data.

EBL Securities noted in its daily commentary that the DSEX closed in positive territory as investors responded to renewed optimism linked to political developments ahead of the polls. Despite a sluggish opening, indices gained strong upward momentum mid-session as opportunistic investors targeted perceived undervalued stocks, allowing the market to end firmly higher.

Market data showed that trading opened on a positive note, with the DSEX up about 20 points by 10:12am. Subsequent sell-offs pushed the index into the red, where it remained until 11:23am. From there, the market rebounded steadily to close with a 21.98-point gain.

Yeakin Polymer topped the day's gainers, rising 9.58% to Tk18.3 a share, followed by Deshbandhu Polymer up 9.25% to Tk17.7, and VFS Threads also up 9.25% to Tk11.8. On the losing side, Premier Leasing led the decliners, dropping 8.45% to Tk0.65 a share. Meghna Petroleum fell 8.08% to Tk192.1, while FAS Finance lost 5.81% to Tk0.81.

The Chittagong Stock Exchange (CSE) also closed higher, with the Selective Categories Index (CSCX) rising 12 points and the All Share Price Index (CASPI) gaining 20.6 points.

GPH Ispat, one of the country's major steel manufacturers, has reported a 64% year-on-year decline in profit for the first quarter of the 2025-26 fiscal year due to rising production and operating costs, along with higher bank interest rates.

In the September quarter, the earnings per share (EPS) of GPH Ispat declined to Tk0.05, which was Tk0.14 in Q1 of FY25, according to a disclosure published on the stock exchanges today (11 December).

Regarding the declines in its profit, GPH Ispat in the disclosure said that its EPS declined in the September quarter due to higher production costs, increased other operating expenses and higher bank interest rates, which collectively compressed profit margins.

Previously, GPH Ispat reported its first-ever annual loss since debuting on the stock exchanges in 2012, marking a significant setback for the Chattogram-based steelmaker as rising production costs and spiralling finance expenses eroded its profitability in FY25.

The company incurred a loss of Tk24.68 crore in the fiscal year ended in June 2025, a sharp reversal that came just a year after GPH posted a profit of Tk85.77 crore in FY24.

The loss translated into a negative earnings per share of Tk0.51, reflecting the pressure from higher costs across its operations.

The company said its bottom line was hit primarily by surging raw material prices, increased production costs, and a substantial spike in finance expenses.

Elevated global scrap prices and higher freight rates pushed up the cost of goods sold, while a rising interest-rate environment increased the burden of borrowing for a firm that relies heavily on loans to fund its operations and expansion projects, it added.

GPH recommended a 5% cash dividend only for general shareholders for FY25 – its lowest payout since listing. The company paid a 10% cash dividend the previous year, and its highest-ever payout was 20% for FY21.

When the official market is constrained, the grey market thrives, and that is precisely what has happened in the mobile phone sector of Bangladesh.

High taxes on official handsets, severe dollar shortages disrupting imports, and the taka's tumble to record lows have made legal devices far more expensive. As a result, the grey market has become the norm, aided by the fact that enforcement agencies seldom visit malls to check whether shops sell genuine products.

But how widespread is the sale of unauthorised handsets?

A few months ago, a secretary of a ministry visited Bashundhara City Shopping Complex to buy a flagship phone. The official seller, a relative of the bureaucrat, advised him not to purchase it from the shop.

Instead, he was directed to another retailer, where he bought the device for Tk 112,000 -- half the Tk 220,000 price it would have cost in the official store, the secretary told The Daily Star, requesting anonymity.

He is far from alone.

Estimates show that 93 percent of premium phones of one brand in use in Bangladesh last year came from the grey market. For mid-range models, the figure was around 69 percent.

Traders say they source these devices through luggage carried by returning travellers.

Now, as the government is set to introduce a centralised system to block new unofficial sets, protests by such traders erupt.

They say documentation and processes required to sell official handsets are not feasible for small retailers. Besides, many consumers would not be able to afford them as they cost up to 35 percent more in taxes.

HIGHEST TAX ON IMPORT

Bangladesh now imposes some of the world's highest taxes on officially imported smartphones, with cumulative duties between 57 and 59 percent. This pushes consumers to the grey market, where handsets can be purchased far cheaper.

High taxes inflate official retail prices 30 percent to 50 percent above international benchmarks in the US, UAE, Malaysia, Indonesia, Vietnam and China. Grey-market devices, which avoid all duties, undercut legal distributors and undermine the viability of official channels.

In November last year, Jungmin Jung, managing director of Samsung Electronics Bangladesh, pointed to the issue at a Foreign Investors' Chamber of Commerce & Industry session.

He showed how the grey market has captured a growing share of sales, driven almost entirely by large price gaps. Samsung data showed that grey-market phones were 30-48 percent cheaper than official models.

For example, a Model A handset priced at Tk 244,000 officially could be bought for roughly Tk 124,000 through unofficial channels. Premium models were the hardest hit, with 93 percent of units circulating in Bangladesh estimated as grey-market imports, while mid-range devices accounted for around 69 percent.

CURRENCY VOLATILITY HURTS LOCAL PRODUCTION

Taxes on locally manufactured phones have also increased. Pakistan imposes around 20 percent duty on mobile production, while Bangladesh's rate has reached 35 percent.

When local assembly began in 2017, raw materials faced only 12 percent import duty, and there was no value-added tax (VAT) on manufacturing or sales.

By 2019, multiple layers of VAT were introduced, and a further 5 percent sales-stage VAT came in 2022, bringing total taxes to 35 percent.

That same year, taka was heavily devalued, opening letters of credit became difficult, and grey handsets grew more attractive, said an official of the Mobile Phone Industry Owners' Association of Bangladesh.

Handset production in 2023 fell for the first time since assembly began, dropping 26 percent year-on-year. This came after a rapid rise from 40,000 units assembled by Walton in 2017 to 3.16 crore in 2022.

In 2024, production rebounded 17 percent, but weak sales and large grey imports continued to challenge manufacturers.

According to the Mobile Phone Industry Owners' Association and Bangladesh Telecommunication Regulatory Commission (BTRC) data, grey smartphones now account for 40 percent to 50 percent of the market.

Meanwhile, Samsung's figures show grey-market imports rose from 24 percent in 2022 to 40 percent in 2024. The overall market is valued at $1.7 billion, with over $0.7 billion captured by unofficial devices.

According to industry insiders, the grey market alone is estimated at around $0.8 billion in 2025.

TRADERS RESIST NEIR

BTRC data show 4.6 crore handsets were added to the network last year. Of these, 2.7 crore were locally manufactured, one-third of them smartphones, while around 1.9 crore entered through unofficial channels.

However, the breakdown of how many handsets were bought by Bangladeshi expatriates and how many by grey-market traders remains unclear.

Shamim Mollah, acting president of the Mobile Business Community Bangladesh, whose members protested against the NEIR system, denied claims that traders bring in phones illegally.

He said devices are sourced from foreign travellers, bypassing official procedures. NEIR and high taxes, he argued, disproportionately threaten small traders, while local assemblers benefit.

"NEIR needs restructuring. We want to pay tax, but the regulator must remove barriers to legal imports," he said.

Meanwhile, BTRC Chairman Major General (Retd) Md Emdad ul Bari said the commission is working to simplify import and vendor-enlistment processes.

He said certificates will require fewer documents and faster approval, and unsold devices in the market will be regularised. Inter-ministerial discussions are ongoing.