Shares of BD Thai Food and Beverage Limited, a company owned by the family of former health minister Zahid Maleque, continued their sharp ascent today (4 December) despite the firm's deteriorating financial health and the absence of any disclosed corporate developments behind the rally.

The stock jumped by 9.87% to close at Tk16.70 on the Dhaka Stock Exchange (DSE), extending a steep rise that began on 13 November. Over the last 15 trading sessions, the share price has soared by 88%, climbing from Tk8.9.

After the unusual surge drew a query from the DSE, the company stated that it had no undisclosed, price-sensitive information that could explain the movement. Nevertheless, the stock continues to attract aggressive trading interest, even as its fundamentals paint a bleak picture.

Former minister Zahid Maleque is a sponsor shareholder of BD Thai Food, holding 11.41% of its shares. His sister, Rubina Hamid, serves as the company's chairman, while his son, Rahat Maleque, is a director. The family established the company in 2010, and it entered the capital market in 2022 through an IPO of 1.5 crore shares at a face value of Tk10 each.

Financial disclosures show the company is in severe distress. In the July-September quarter of the 2023-24 fiscal year, BD Thai Food reported a loss of Tk4 crore, translating to a loss per share of Tk0.49.

For the full FY25, its losses deepened to Tk13.40 crore, while revenue plunged by 72% to Tk16.91 crore.

Facing mounting losses, the board decided not to recommend any dividend for the last fiscal year.

Auditor Fames and R issued a stark warning in the FY25 audit report, noting that the company faces a "going concern" threat due to its hefty loans, declining revenues, rising liabilities, stagnant inventories, and uncertainty over the realisation of receivables and advances.

As of FY25, BD Thai Food carries Tk48 crore in term loans and Tk81.23 crore in short-term borrowing, with Agrani Bank identified as its major lender.

BD Thai Aluminium, another listed company owned by the Maleque family, has also seen dramatic price action in recent weeks. From 13 November to 3 December, its share price surged by 53% to Tk13.50, before slipping by 4.45% to Tk12.90 today.

In December 2023, Zahid Maleque and his family divested their entire stake in Sunlife Insurance Company Limited, selling it to Green Delta Insurance.

Lub-rref (Bangladesh), a lubricant blender and refiner, has allegedly violated regulatory requirements by spending more than six times its allocated budget for land acquisition and development under its expansion project, without seeking shareholders' approval.

According to an auditor's report on the use of initial public offering (IPO) funds, the company had earmarked Tk7.88 crore for land and land development but ultimately spent Tk49.61 crore, which is an excess of around Tk41 crore.

Any change in the utilisation of IPO proceeds requires shareholders' approval through an extraordinary general meeting (EGM), followed by approval from the Bangladesh Securities and Exchange Commission (BSEC).

Despite utilising excess funds, Lub-rref (Bangladesh) did not arrange an EGM or obtain regulatory approval in this regard.

According to MAB & J Partners, the company's chartered accountant and auditor, the excess expenditure on land and land development constitutes a significant non-compliance with the approved IPO fund-utilisation plan.

As per the report of the auditor, Lub-rref spent Tk49.61 crore in two phases. In the first phase by 30 April 2024, it spent Tk35.91 crore for land and land development purposes. The payments were made through the banking channel.

In the second phase, between 1 May 2024 and 30 June 2025, it spent Tk13.70 crore, but the auditor got supportive documents of Tk5.79 crore, leaving Tk7.90 crore unsupported.

Kabir Hossain, company secretary of Lub-rref (Bangladesh), told TBS, "When the expansion project was undertaken, the land area was only 25 acres. To execute the investment plan, the company later acquired a total of 40 acres of land."

He explained that the new project site in Julda, located along the banks of the River Karnaphuli, consists of very low-lying land. "To make the land usable, we needed to fill it with 20-24 feet of sand," he said. "So, additional funds were spent beyond the initial plan."

When asked why an EGM was not arranged to approve the change in IPO proceeds, he said, "We did not hold an EGM, but we informed the commission, and its teams have visited the site."

Lub-rref (Bangladesh) has taken base oil refinery project cost was Tk1,283 crore, including Tk150 crore IPO fund.

The project was included a jetty, a tank terminal, a modern base oil refinery, a hydrogen plant and a specialised bitumen plant.

Of this project, Tk900 crore was loans and Tk750 crore foreign loans, which were supposed to be used as LC for the project. But due to the global crisis and local liquidity shortage, the disbursement of those loans experienced delays.

In 2021, the company successfully raised Tk150 crore from the capital market to purchase machinery and repay existing loans.

The auditor's report shows that by August 2025, Lub-rref had utilised Tk136.89 crore of its IPO fund – Tk46 crore repayment of bank loans.

Between May and June alone, it spent Tk37.47 crore, including Tk13.70 crore on land development and Tk23.40 crore for working capital.

Unspent amount up to August, Tk13.10 in principal, but with the interest amount, the total unspent amount is Tk19.86 crore.

Incurs Tk66cr loss

Lub-rref, once a highly profitable lubricant blender and refiner known for its BNO brand, has suffered a dramatic financial reversal, reporting a record loss of Tk66 crore for the 2024-25 fiscal year.

This collapse, attributed to severe banking restrictions and a crippling shortage of working capital, has forced the company to declare no dividend for the first time since its listing.

Its previous data showed that after listing on the bourses, it had posted a regular profit until FY23, with the highest Tk36.43 crore in FY21.

After that, due to the complexities in opening LCs amid banking restrictions began in October 2022 with its lead banker, Social Islami Bank's Agrabad Branch, the company failed to import raw materials and was forced to continue operations by procuring them from a local vendor that imports the materials from abroad.

In FY24, it incurred a loss of Tk10.76 crore, a reversal from a profit of Tk20.47 crore the previous year, driven by higher financial expenses and decreased overall income and paid 1% cash dividend for its shareholders.

Uncertainty over Tk20cr IPO funds

Lub-rref has kept its Tk13.10 crore funds collected from the IPO in Social Islami Bank in a special notice deposit account for the purpose of using the funds for expansion.

According to an auditor's report published on the DSE website on 9 November, the unspent funds – held in bank accounts – had grown to Tk19.86 crore with accrued interest as of August 2025.

Earlier, Kabir said, "We kept the funds in the bank, but the bank did not repay us, citing liquidity crunch. The company also owed the bank, as it is the lead banker of the company."

Founded in 2001, Lub-rref began commercial operations in 2006. Today, 60% of its lubricants are produced from responsibly recycled sources, with the remaining 40% derived from imported base oil.

The government has increased its reliance on bank financing in recent months as revenue collection struggles to keep pace with spending, while private sector credit growth remains at one of its lowest levels in decades.

According to the Bangladesh Bank (BB), outstanding bank loans to the government rose 24.45 percent in September compared with a year earlier, reaching Tk 5.65 lakh crore.

By contrast, loans to the private sector increased by just 6.29 percent year-on-year to Tk 17.56 lakh crore, down slightly from 6.35 percent in August. In September 2024, private sector lending stood at Tk 16.52 lakh crore.

This marks the slowest pace of expansion in at least 20 years, showing how businesses are holding back on fresh investment amid high borrowing costs, uncertainty ahead of the national election, and subdued consumer demand.

Towfiqul Islam Khan, additional research director at the Centre for Policy Dialogue (CPD), said the government currently has "very lean" fiscal space because revenue collections have repeatedly missed projections.

Official figures show that the National Board of Revenue (NBR) fell short of its collection target for the 13th consecutive year in the last fiscal year.

NBR's overall receipts reached Tk 3.7 lakh crore in FY25, leaving a shortfall of Tk 92,626 crore against the revised target.

In the July-September quarter of FY26, the revenue board's collection rose 20 percent to Tk 75,554 crore, according to provisional data. However, it missed its quarterly target of Tk 99,900 crore, leaving a shortfall of more than Tk 24,000 crore.

From July to October, revenue collection grew 15 percent year-on-year to Tk 103,400 crore, but the gap against the target remained around Tk 33,300 crore, according to the NBR.

With limited funds from savings instruments and little scope for external borrowing, Khan said the government has been forced to rely more heavily on the banking system.

"For now, the banks have become the only option," he said.

Khan also noted that the high level of government borrowing limits the central bank's ability to reduce policy rates to stimulate private investment, as inflation remains elevated.

The Bangladesh Bank (BB) has kept its policy rate at 10 percent since October 2024, aiming to bring inflation down to 6.5 percent by next June. The 12-month inflation rate stood at 8.02 percent in October.

Recently, BB Governor Ahsan H Mansur said the central bank would consider cutting rates once inflation falls below 7 percent.

"Inflation is tied to the overall money supply, not just private sector credit growth," Khan said, which means an aggressive rate cuts could worsen price pressures.

Businesses are facing higher lending costs at a time when sales and investment plans are slowing, he added.

The economist noted that although the government is curtailing project expenses, prolonged delays ultimately raise overall costs and can undermine project viability.

"The government is in a limbo. Unless domestic revenue improves and public spending becomes more efficient, the debt position will continue to deteriorate," he said.

These concerns were also mentioned in the latest monthly economic outlook from the General Economics Division (GED) of the Planning Commission, released last week.

The GED review noted that the state's growing dependence on bank borrowing must be reduced through stronger revenue mobilisation.

It also highlighted that sluggish private borrowing is influenced by cautious bank lending and heightened political and economic uncertainty.

Monzur Hossain, a member of the GED, said slow private borrowing has broader implications for the economy because private investment is the main driver of job creation, while government borrowing can have a crowding out effect.

He added that investment decisions rarely depend on a single factor, but high lending rates make expansion more difficult. Past credit data had been inflated due to money laundering disguised as loans, a practice that no longer occurs.

Besides, he said several banks currently struggle with insufficient liquidity to support new lending.

Ashikur Rahman, principal economist at the Policy Research Institute (PRI) of Bangladesh, said private investment appetite remains muted, reflected in import data for capital machinery and industrial raw materials.

Although letters of credit (LCs) for these items rose slightly in July-September, this followed steep declines last year, showing that overall investment plans remain subdued.

According to the central bank, LC openings for capital machinery in July-September grew 23 percent year-on-year to $472 million, compared with $384 million in FY24, down 41 percent from $651 million a year earlier.

LC openings for intermediate goods rose 1.59 percent, up from a 7.22 percent decline in the previous fiscal year, while industrial raw materials increased 5.73 percent, slightly higher than the 4.66 percent growth previously.

Rahman added that banks have become more selective due to mounting non-performing loans (NPLs), making them hesitant to extend new credit.

He expects this cautious approach to persist for at least another six months.

The economist dismissed the idea that government borrowing is crowding out private lending, arguing that firms themselves are borrowing less.

"Banks are lending to the government because it is safe, and the government needs funds because its revenue is weak. For the moment, this is not creating a major problem," he said.

Chinese leader Xi Jinping accompanied French President Emmanuel Macron to Chengdu on Friday (5 December), a rare gesture seemingly reserved for the head of Europe's second-largest economy that highlights Beijing's focus on Paris in its ties with the European Union.

Even when US President Donald Trump made a landmark visit to China early during his first term in 2017, and Xi lavished him with a private dinner within Beijing's Forbidden City, the trip was confined to the Chinese capital.

But despite the apparent bonhomie between Xi and Macron, the French president's visit so far has resulted in little beyond bolstering Beijing's diplomatic credentials, as world leaders turn to China seeking economic assurances due to Trump's tariffs, analysts say. It has also provided Macron with a chance to project statesmanship after a tough summer in domestic politics.

Investors are watching to see whether a day that began with the French president surprising fellow joggers in the city's Jincheng Lake Park, before joining Xi at a historic dam site, will end with major commercial deals or a thaw in EU-China trade tensions, given that Macron has been joined on his fourth state visit to China by the heads of some of France's biggest firms.

A meeting in the Chinese capital on Thursday only resulted in 12 cooperation agreements covering areas such as population ageing, nuclear energy and panda conservation, and no monetary total was disclosed.

"I think they (France) thought that Xi would be in a position to offer a lot because Europe is really preparing this economic security doctrine," said Alicia Garcia-Herrero, senior fellow at the think tank Bruegel.

"Macron probably felt that given his weight and the fact that France is clearly the one that is pushing the most on economic security, that they would get a deal, but nope."

Still, the French president will take the publicity win from receiving a rock-star welcome from students at Sichuan University, who crowded around him before a speech in which he urged China to reflect on its role in global affairs.

"We are at a moment of unprecedented rupture," Macron said. "The world we built after World War II, which was based on what we call multilateralism and therefore cooperation between powers is cracking, fracturing."

Macron also took aim at China's notion that the West's power is waning.

"Plenty of people will try to tell you that Europe is old," he said. "That the rich countries you find in the G7 are arrogant. That the West is looking down on the Global South. But all of that is a narrative, a fabrication."

Economic opportunities face political constraints

Beijing may see friendly ties with France as a way into expanding its influence within the 27-strong EU, but is very constrained in its ability to offer Paris major concessions.

The Chinese leader was not expected to sign off on a long-anticipated 500-jet Airbus order, for example, as that would reduce China's leverage in trade talks with the US, which is pressing for new Boeing commitments.

Xi is also unlikely to ease conditions for French cognac makers or pork producers, as doing so would weaken Beijing's negotiating position with Brussels over tariffs on Chinese-made electric vehicles.

Nor can Xi offer Macron a breakthrough on the war in Ukraine for him to take back to Europe, with China having recently reaffirmed its support for Russia.

Recent visits by Spain's King Felipe VI and German Finance Minister Lars Klingbeil were similarly low on tangible outcomes.

Chinese government advisers say Beijing feels it has the upper hand and is waiting for Brussels to yield and accept a minimum price plan for its EVs rather than the tariffs currently levied on them.

"They (the EU) now recognise the complexity of the issue. After Trump became president again, they realised they are too dependent on the US.... Europe is now in need of more reciprocal trade with China," one adviser said, requesting anonymity as he is not authorised to speak with media.

"The EU should really reflect on its China policy and not tie it too closely to Russia and Ukraine," he added.

Divide and conquer

Xi also did not raise the prospect of a trade deal with the EU with Macron - which China's top diplomat Wang Yi brought up when Estonia's foreign minister visited last month and the Chinese commerce ministry has touted - despite talks over a landmark EU-China investment pact having been frozen since 2021.

The vote on whether to adopt the European Commission's EV tariffs divided the member states, with France voting in favour of the duties while Germany, Europe's biggest economy, voted against.

China could seek to exploit such divisions.

"It is interesting that they (China) keep raising it (a trade deal) with the member states," said a European Commission official. "We have no plans whatsoever to have any kind of trade agreement with China," they added, also requesting anonymity.

A long-awaited 20% rebate on electricity bills for the fisheries and livestock sector is now at the final stage of approval, Fisheries and Livestock Adviser Farida Akhtar said yesterday (3 December).

Speaking as chief guest at a seminar in the capital, the adviser said fisheries and livestock have long faced discrimination despite being major food-producing sectors.

The seminar titled "Transforming Policy Support for Revitalising Bangladesh's Shrimp Sector" was jointly organised by the Bangladesh Frozen Foods Exporters Association and the Policy Research Institute.

Farida Akhtar said she has been in discussions with the Energy and Mineral Resources Division and the finance ministry for the past year.

"We have finally received assurance from the finance ministry that a 20% rebate will be approved. The announcement will come very soon," she said.

She also cautioned that unethical practices – such as the misuse of antibiotics, antimicrobial resistance (AMR), and jelly pushing – pose serious risks for Bangladesh's shrimp exports in the global market.

Bangladesh Bank Governor Ahsan H Mansur, attending as special guest, issued a strong warning regarding underutilised government-leased land allotted for shrimp cultivation.

"If large industrial groups fail to invest in the land they have taken, they should be kicked out. This land must go to genuine entrepreneurs," he said.

Presenting the keynote paper, Dr Bazlul Haque Khondaker, research director at PRI, identified input shortages, low productivity and inadequate policy support as the main barriers to the sector's growth.

Shrimp exporters, researchers, industry experts and government officials attended the event.

Refiners have reportedly once again increased the prices of soybean oil, even though the government says it has not authorised the hike in the essential commodity.

Retailers in Dhaka, Chattogram, and Barishal reported yesterday that a one-litre bottle of soybean oil is now selling at Tk 198, about 5 percent higher than a week ago. Five-litre bottles are priced at Tk 965, up Tk 45 or 5 percent from the previous week.

Market data from the Trading Corporation of Bangladesh (TCB) also confirmed the rise, with 5-litre bottles recorded at Tk 960, compared with Tk 910 a week earlier. Loose palm oil prices have similarly surged.

The latest increase comes amid persistently high inflation, which stood at 8.17 percent in October, adding financial pressure on households already struggling with rising living costs.

Speaking to the media at the Bangladesh Secretariat on Tuesday, Commerce Adviser Sk Bashir Uddin said the refiners' price hikes lack legal justification. "Traders raised prices without informing the authorities."

Retailers blame the big groups for the sudden hike.

"All brands have raised prices," said Hasibul Islam Ponir, a trader in Mirpur's Pallabi area.

Sagar Hossain, a retailer at Karwan Bazar, noted that customers frequently question sudden price spikes.

A market visit to Khatunganj, Kazir Dewri, Chawkbazar, and Choumuhani in Chattogram confirmed the increase, with major brands such as Rupchanda, Teer, Pusti, and Fresh selling five-litre bottles at Tk 965, up from Tk 920-Tk 922. One-litre bottles now retail at Tk 198, although newly priced stocks have yet to fully reach the market.

Mohammad Rafique, proprietor of Nabin Trading at Chattogra's Khatunganj, the country's largest wholesale market for consumer goods, claimed that refiners reduced supply ahead of Ramadan, contributing to the spike at the wholesale level too.

However, Md Shafiul Ather Taslim, director for finance and operations at TK Group, said the rise is driven by global market increase.

He said international prices rose by $150-$200 per tonne over the past two to three months. Import costs have also risen from $1,090 to $1,203 per tonne, affecting operational expenses.

"As a company, we have followed the law. We informed the Ministry of Commerce 15 days before the price adjustment and sought verification. Since the ministry did not respond or object, we proceeded within the legal framework," he said.

He added that without the ability to adjust prices according to global market conditions, companies risk heavy losses, struggling to pay bank loans, employee salaries, and operational costs. "Shutting down operations becomes the only remaining option."

According to the Bangladesh Trade and Tariff Commission, companies proposed the price hike on November 10, with a planned effective date of November 24. However, the government did not approve the bid.

Bangladesh's domestic consumption of soybean and palm oil in the 2024-25 marketing year, beginning in October, was estimated at 28.6 lakh tonnes, including 11.35 lakh tonnes of soybeans, with 85 percent imported, according to the US Department of Agriculture.

Bangladesh is moving to integrate international payment systems such as PayPal to expand global market access for small entrepreneurs and modernise the cottage and small industries sector through stronger digital connectivity, said Bangladesh Bank Governor Ahsan H Mansur yesterday.

"We have already removed regulatory barriers. SMEs should be able to receive payments seamlessly through platforms like PayPal," he said while addressing the Annual Conference and Workshop 2025 at the Bangladesh Small and Cottage Industries Corporation (BSCIC) headquarters in Dhaka.

Citing global shifts, he highlighted the importance of linking international payment gateways to help local entrepreneurs reach global markets.

He stressed the urgent need to modernise and support small and cottage industries by strengthening supply chains, encouraging integration with larger firms, and building robust digital and sustainable platforms.

"Here, firms try to do everything on their own," he said, attributing part of the challenge to tax complications and policy inconsistencies that hinder both vertical and horizontal integration.

On financing, he criticised the limited scope of BSCIC's loan disbursement.

Only Tk 200-250 crore is being distributed. This should have been much higher, he said, pointing to weak distribution channels and inadequate institutional capacity.

Mansur recommended partnering with microfinance institutions or specialised banks so that loans reach the intended SMEs.

The governor also called for a dynamic online marketplace for BSCIC entrepreneurs, proposing a professionally managed e-commerce platform to directly connect producers with buyers, eliminate middlemen, and ensure fair prices.

"It must be updated continuously and operated professionally. We must invest in quality IT personnel and infrastructure," he said.

Mansur further highlighted the need for stronger demand-side development, warning that increasing supply without corresponding market creation would create inefficiencies.

"Entrepreneurs will suffer if they can't sell. Market access must come first," he said.

JMI Hospital Requisite Manufacturing Ltd has announced the conversion of JMI Specialized Hospital Limited (JSHL), a subsidiary, into a public limited company.

The decision was taken at a board meeting on December 2, according to a disclosure on the Dhaka Stock Exchange (DSE) website today.

Its board noted that the company has invested an additional Tk 10.6 crore in JSHL, raising total investment to Tk 31.6 crore.

It further resolved not to invest more and to reduce its shareholding below 50 percent, thereby converting JSHL from a subsidiary to an associate while retaining significant influence.

For the July-September quarter, JMI Hospital Requisite Manufacturing reported a profit of Tk 3.59 crore, down 48 percent year‑on‑year.

The decline was attributed to lower sales and operating expenses that did not fall proportionately.

Commercial operations at JSHL also began during the quarter, leading to higher initial costs and further pressure on earnings, the company said in a price‑sensitive disclosure.

Founded in 2008 through a joint venture with South Korea, JMI Hospital Requisite Manufacturing produces IV cannulas, bulk needles, blood transfusion sets and urine drainage bags.

Its products are sold both domestically and internationally.

As of November 30, 2025, sponsors/directors held 32.30 percent shares of JMI Hospital Requisite Manufacturing, institutions 43.03 percent and public 24.67 percent, according to DSE data.

Bangladesh is increasingly getting into hard-term-debt burden by taking volumes of non-concessional loans particularly for bankrolling some mega-and major projects, officials say and warn of forex risks.

In the first quarter of the current fiscal year (FY) 2025-26, the country had already crossed limits of any other annual borrowing of the high-rated loans, they add.

In a single sitting on September 24, the interim government approved seven loans worth US$1.44 billion on hard terms, official and analysts said Tuesday.

Chaired by Finance Adviser Dr Salehuddin Ahmed, the standing committee on non-concessional loan (SCNCL) in September gave the all-clear for these loans from the Asian Development Bank, the European Investment Bank (EIB), the Islamic Development Bank and the Asian Infrastructure Investment Bank (AIIB), Economic Relations Division (ERD) officials have said.

Among the foreign credits, the non-concessional loan committee endorsed ADB's three fresh loans worth $649 million at its September meeting.

On the other hand, the rest $791-million loans from three separate lenders are older ones as the Bangladesh government had already taken those for four separate projects.

According to ERD, the ADB is to provide $508 million hard-term loan for the Chittagong-Dohazari railway-line project, $50 million for Khulna WASA, $91 million for expanding distribution network under the NESCO from its non-concessional window -- Ordinary Capital Resources (OCR) -- which hands outs market-based credits.

Among the already-confirmed non-concessional loans, AIIB's $400-million budget support, EIB's Euro 90 million for Sayedabad water-treatment plant and Euro 70 million for the Dhaka Environmentally Sustainable Water Supply (Dhaka WASA) project were approved at the meeting.

The non-concessional loan committee also approved IDB's $231-million loan for the construction of five climate-resilient bridges in Mymensingh division, which is also a market-based loan.

Analysts say Bangladesh is navigating a significant shift in its external-borrowing strategy, increasingly relying on costlier, non-concessional loans in recent years, a move driven by its transition to middle-income status and the need to finance large infrastructure projects.

Meanwhile, a total of 107 proposals for non-concessional loans have been approved by the Standing Committee in last 10 years to June 2025.

The SCNCL in the last fiscal year (2024-25) scrutinised loan terms and approved 13 proposals in line with national development priority.

In FY2024, the Standing Committee approved the proposal for taking 16 non-concessional loans.

According to the ERD, the SCNCL was constituted on 14 July 2013 to examine and approve the flexibility of the loan in a process consistent with the best international practices for negotiating the risk of hard conditions.

Foreign loans with less than 25-percent grants are required to be presented to the SCNCL for examination and approval.

A senior ERD official says the ERD is trying to maintain Bangladesh's strong debt-management record. "Key debt-sustainability indicators remained below internationally accepted risk-threshold values."

Analysts say Bangladesh's shift is escalating the nation's debt-servicing obligations and putting pressure on its foreign-exchange reserves, according to recent reports from financial institutions and economists.

Total debt-service payments during last FY2025 stood at US$4.087 billion, comprising $2.59 billion as principal repayment and $1.49 billion as interest payment, ERD data show.

The ERD official says the country's graduation to a lower-middle-income country in 2015 meant it became less eligible for highly concessional, low-interest loans (like the World Bank's IDA credits) which have long grace-and maturity periods.

As a result, the share of highly concessional IDA loans in the total external- borrowing portfolio dropped sharply from 58.9 per cent in 2013 to 27 per cent in 2022.

In their place, Bangladesh has increasingly turned to more expensive bilateral sources, such as China and Russia, and non-concessional windows of multilateral partners like the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB), the official notes.

Chairman of the Policy Exchange, Bangladesh Dr Masrur Reaz told the FE that foreign loan-based indiscriminate and excessive project taken up by the last government already created pressure on the fiscal discipline.

"Bangladesh's total debt obligation (private and public sectors) has already crossed US$100-billion mark. Out of the loans, some three-fourths are the public-sector debt. So, the government has to think before taking any loan, especially the non-concessional ones," he adds.

Only those external credit-based projects need to be taken which have highest and critical returns, the young economist suggests.

The government should also negotiate strictly on the terms and conditions set by the foreign lenders to reduce the pressure on the foreign-exchange reserves.

A significant portion of the increased debt is tied to large-scale infrastructure projects, including the Rooppur Nuclear Power Plant (financed by Russia) and the Padma Bridge Rail Link (financed by China), another ERD official mentions.

"The grace periods on several of these large loans are ending or have recently ended, leading to a sharp increase in principal and interest payments," the ERD official mentions.

He says the significant depreciation of the Bangladeshi Taka against the US dollar, rising global interest rates, such as the transition from LIBOR to SOFR, have also increased the cost of existing loans with flexible-interest terms.

A former ERD secretary, Kazi Shofiqul Azam, notes that the economic success of achieving middle-income status has paradoxically led to tougher lending terms, with higher interest rates and shorter repayment periods.

Economists and the International Monetary Fund (IMF) have classified Bangladesh's external debt as "moderately risky" and are urging greater caution and improved debt-management strategies.

Experts recommend focusing on rigorous project evaluation, enhancing domestic revenue collection, and ensuring transparency to maintain long-term debt sustainability and avoid a potential crisis.

Bank Asia PLC, a private-sector lender, has approved a Tk120 crore capital injection into its wholly owned subsidiary, Bank Asia Securities with a view to diversifying its portfolio.

Subsequently, Bangladesh Bank has approved the capital injection, Bank Asia said in a disclosure published on the stock exchange website today (3 December).

Bank Asia Securities is a majority-owned subsidiary incorporated in Bangladesh and acts as a stock broker and stock dealer in capital market.

Bank Asia has three subsidiary companies, including Bank Asia Securities in Bangladesh and two others in the UK and USA.

Mohammad Ibrahim Khalil, FCA told The Business Standard, the bank has decided to inject funds into the subsidiary mainly to diversify the portfolio as the bank observed potentiality in the securities business is high.

"That is why, the bank will inject funds into the subsidiary; the subsidiary firm will continue its business like lending to its clients, and investment," he added.

According to its annual report for 2024, despite bearish movements of the capital market, Bank Asia Securities has advanced its position to 7 from 9 of DSE's Top - 20 in consideration of daily turnover throughout the year of 2024.

Total Operating profit of Bank Asia Securities stood at Tk16 crore in 2024 against Tk10.8 crore in 2023.

Margin loan outstanding stood at Tk421.5 crore on 31 December 2024, the report showed.

It made a profit of Tk63.97 lakh with an earnings per share (EPS) of Tk0.32, which was Tk41.67 lakh and Tk0.21 respectively.

Bank Asia PLC in the first nine months during the January to September of 2025, has made a profit of Tk351.27 crore with an EPS of Tk2.58, which was Tk205.55 crore and EPS of Tk1.44 in the same time of the previous fiscal year.

In 2024, it made a profit of Tk286.79 crore, which was Tk247.88 crore in 2023. It had paid 10% cash and 10% stock dividend for 2024.

Stocks at the Dhaka bourse failed to stay in the green today (3 December) as late-hour selling pressure dragged the market into negative territory, erasing early gains driven by a brief rally in the morning session.

The DSEX, the key benchmark index, fell by 23 points to close at 4,927, as most share prices declined, particularly among large-cap stocks.

This came despite a 7% increase in turnover to Tk405 crore and a Tk2,234 crore rise in total market capitalisation to Tk6.87 lakh crore.

The decline follows Tuesday's minor rebound of 36 points, which came after the index had shed 113 points over the previous two sessions.

DSE data show that trading opened on a positive note today. In the first 38 minutes, the DSEX gained 40 points as most share prices edged up.

But, the momentum quickly reversed as selling pressure intensified through the session, pushing the market back into the red.

By the close, 236 stocks had declined, 93 had advanced and 65 remained unchanged.

According to data from the LankaBangla portal, BRAC Bank, Islami Bank, National Bank, and IFIC Bank were the major index draggers, while Orion Infusion, ML Dyeing, BD Thai, Orion Pharmaceuticals, and Southeast Bank were among the index pullers.

Market insiders said over some past trading sessions, stocks have been continuing a bearish trend as investors continued to sell off shares amid rising political uncertainty and fresh concerns triggered by the central bank's decision to wind up nine non-bank financial institutions (NBFIs).

Market observers added that the recent merger of five listed banks had already unsettled investors, many of whom "returned empty-handed", and now the move to liquidate the troubled NBFIs has created anxiety among investors, who fear potential effects across the financial sector.

Loss-making firms dominate gainer list

Loss-making and non-compliant firms dominated the day's gainer list, with several hitting the upper circuit after rising by the maximum 10% allowed in a single session, according to DSE data.

Standard Ceramics – a company that has been posting losses for years – topped the list as its shares jumped by 10% to Tk64.9. Newline Clothings also rose by the maximum limit to Tk4.4, while Zeal Bangla Sugar Mills gained 9.95% to Tk120.4.

On the other end of the board, Premier Leasing led the losers, dropping 10.39% to Tk0.69. It was followed by International Leasing, down 9.87% to Tk0.73; Simtex Industries, down 9.74% to Tk25; Fareast Finance, down 9.58% to Tk0.66; and BIFC, which fell 9.52% to Tk1.9.

In principle, there is nothing wrong with cash financial transactions. The problem arises when they are used to evade tax, launder money, facilitate illegal deals or pay bribes. In such cases, the transactions become questionable.

A clear definition of cash transactions is essential. Issuing cash cheques and moving funds outside banking channels are common examples. The government has tried through various regulations to reduce reliance on cash, yet the impact has been limited.

As a result, financial statements are drifting away from reality, and personal finances are being pushed into the informal economy. These practices have fuelled large-scale tax evasion and corruption. The use of illegal funds for criminal activities adds another layer of concern that cannot be ignored.

Cash transactions are widespread in property deals, where a large portion of the payment takes place in cash outside the official deed value. Similarly, cash sales are often not deposited into company bank accounts and remain outside the books. Cash payments to suppliers are another area where tax evasion is a key motivation.

Recently, some bank officials have begun questioning ordinary clients about withdrawals exceeding Taka five hundred thousand. Yet it is striking that, within this environment, billions have been siphoned out of banks, apparently without similar scrutiny.

The government has introduced various measures to bring untaxed black money into the formal economy, but these have shown little success.

With the introduction of document verification, ICAB has ended the practice of maintaining multiple sets of financial statements. If cash transactions can be reduced or controlled, the quality of financial reporting will improve, and government revenue will be better protected, which in turn will help support economic growth.

There is also an irrational rule in the country. Any individual, regardless of income, tax history, social standing or financial position, is entitled to the same foreign currency quota, including international credit card limits. Money exchange houses operate largely on a cash basis, and the extent to which these are effectively monitored is unclear. Only account holders under the export retention quota receive some flexibility, and students are allowed to remit funds for overseas education. These narrow opportunities encourage further cash transactions.

Foreign currency quotas for overseas travel should vary according to income, frequency of foreign trips and annual personal tax contribution. In many countries, cash payments beyond petty purchases in small shops or street markets are rare. Some argue that cash cannot be avoided in retail trade. Yet daily sales can be deposited by evening or the next working morning. Bank branches are now widespread across the country.

Many companies, particularly foreign ones, already follow such practices. Salaries and wages can be paid through banks, as can student allowances, overtime and local travel costs, which is standard in all CA firms under ICAB requirements. No supplier should receive cash payments in any corporate entity. Auditors can attach a certificate to cash transactions with tax returns to ensure transparency. In property acquisitions, all payments, whether within or beyond deed value, should be subject to tax and penalties where evasion is detected.

Ultimately, digitalisation is a crucial tool for correcting these irregularities. Like many developing countries, Bangladesh must reduce cash transactions to remove a significant barrier to economic growth, and the sooner the better.

The writer is a senior partner of Hoda Vasi Chowdhury and Co, and past president of ICAB

Bangladesh's telecom sector is suffering from entrenched corruption, systemic irregularities and a governance breakdown that has weakened regulatory credibility, distorted markets and wasted public resources, according to a government-commissioned white paper.

Prepared by a seven-member committee headed by Buet Professor Kamrul Hasan, the white paper paints a bleak picture of a sector "structurally misaligned, operationally compromised and failing to deliver trusted, affordable connectivity".

Formed on April 20, the committee reviewed governance practices across 10 entities under the Posts and Telecommunications Division (PTD).

It found that policy neglect, unchecked favouritism, politicised appointments and procurement manipulation had accumulated over the years.

The document, based on a forensic review of 10 key entities under the PTD, exposes a systemic "governance capture" that has crippled regulatory authority, bled state-owned enterprises and defrauded the public.

From the highest regulatory body to project implementation cells, the sector operates on favouritism, bypasses competitive processes and treats public resources as a vehicle for patronage.

"These structural deficiencies produce systemic risks to meritocracy, institutional credibility, service delivery and long-term sector reform."

The chaos is "symptomatic of misaligned institutional architecture rather than isolated incidents".

BTRC's practices have eroded institutional integrity and diminished the credibility of sector oversight.

— The white paper read
At the heart of the crisis is the Bangladesh Telecommunication Regulatory Commission (BTRC), the agency tasked with regulating the sector.

The white paper found the BTRC itself to be a primary source of irregularity, with its credibility shattered by its own actions.

The commission was accused of "non-competitive recruitment, misclassification of candidates, excessive age relaxations, improper absorption of project-funded staff, re-employment of retirees and conflicted commissioner appointments".

By blurring the lines between regulator and employer, the BTRC created a self-serving system.

"BTRC's practices have eroded institutional integrity and diminished the credibility of sector oversight," the report said.

The irregularities at the top set a precedent for the entire ecosystem.

The malaise spread through state-owned enterprises like Bangladesh Telecommunications Company Limited and Teletalk, where boards became instruments of "governance capture and politicised board-level decision-making".

The report details "ad hoc contractual hiring, repeated contract renewals treated as de facto permanent employment, politicised extensions of acting leadership [and] appointments of under-qualified candidates" including instances where fake credentials were accepted.

The committee underscores that "high autonomy without accompanying accountability often translates into favouritism and circumvention of rules".

The licensing regime between 2009 and 2024 is described as a period of "systemic weaknesses" that "facilitated rent-seeking behaviour".

The shift to a liberalised policy in 2010 was executed "without credible baseline studies or impact analysis", creating instant regulatory instability that was exploited by the well-connected.

"Licences and approvals often advantaged politically connected firms, while similarly positioned applicants without patronage faced obstruction."

The report called the IGW Operators Forum a cartel that centralised funds and enabled "opaque fund flows with alleged revenue leakage".

Furthermore, cross-ownership rules allowed a few conglomerates -- specifically naming Summit and Fiber@Home -- to establish an oligopoly over national fibre, leading to "high leasing costs and transfer of government-built assets under unfavourable revenue-sharing arrangements".

The consequence was a "fragmented, high-friction market" where "discretionary approvals, ad hoc exemptions and inconsistent enforcement were pervasive".

The committee found that the BTRC's autonomy was severely curtailed by political interference, making impartial oversight impossible.

"Regulatory credibility suffers when the principal regulator exhibits the same irregularities it is tasked with policing," the report said.

After reviewing 42 PTD projects worth Tk 20,009.82 crore, the white paper committee found nearly half were deficient.

The Social Obligation Fund, designed to bridge the digital divide, is presented as an emblem of failure, marked by "dormant funds, irregular procurement, weak evaluation and minimal industry engagement".

Procurement rules were blatantly violated. The white paper committee identified the state-owned Telephone Shilpa Sangstha (TSS) as a "recurring bypass mechanism" used to award contracts non-competitively to favoured parties.

Direct procurement method and tailored tender language were repeatedly used to enable single-source awards, contract splitting and circumvent competitive processes, the report said.

Meanwhile, the Bangabandhu Satellite-1, now renamed the Bangladesh Satellite 1 project, is highlighted as a case study in technical and financial failure, approved without proper feasibility, leading to massive underutilisation and unresolved audit objections.

Field inspections by white paper committee members found BTCL Wi-Fi hotspots and Teletalk towers "physically present but not operational", a symbol of investments turning into worthless liabilities.

"The white paper demonstrates that the transformation of Bangladesh's post and telecommunications ecosystem has been constrained not by technological limitations, but by systemic governance, institutional and operational weaknesses."

The committee recommends immediate action to digitise HR systems, reform autonomy and accountability structures, establish a national telecom master plan, strengthen procurement oversight, introduce an independent appeals mechanism and rebuild consumer protection architecture.

Government spending on several foreign-funded mega projects, including the Rooppur Nuclear Power Plant and metro rail works in Dhaka, has increased as the local currency Taka weakened sharply against the US dollar in recent years.

The increase has pushed up local currency costs even though dollar-based project values remain unchanged.

For the Rooppur plant alone, estimated costs may rise by 23 percent, equal to Tk 26,181 crore. However, the project value in dollars stays the same.

According to economists, a steep fall in the currency makes repayment for foreign-funded projects heavier. The impact is even harsher when the economy slows and revenue growth stalls, which is now the case in Bangladesh.

The Rooppur project was approved in 2016 at Tk 113,092 crore. Russian finance support was projected at Tk 91,040 crore, or $11.38 billion, based on an exchange rate of Tk 80 per dollar. After approval, the rate hovered near Tk 85 for several years.

Pent-up demand after the Covid pandemic drove imports up, and the Russia-Ukraine war raised global prices. The country then saw its dollar stocks fall rapidly.

Subsequently, dollar shortage worsened, and the exchange rate climbed gradually as the International Monetary Fund (IMF) pressed for a market-based rate. It eventually rose from Tk 85 to around Tk 115 before the political changeover in August last year.

But the project cost was not revised in step with the depreciation.

Recently, the Ministry of Science and Technology has sent the first revised proposal to the Planning Commission, seeking an increase to Tk 126,479 crore to account for the weaker currency.

The commission, however, has assessed that the dollar component was not fully reflected in the ministry's estimate. Its own calculation suggests the cost may reach Tk 139,274 crore.

So far, the project has used $8.29 billion, valued at Tk 95.28 per dollar. The rest of the financing, equal to $3.09 billion, is projected at an exchange rate of Tk 122.4.

The commission is reviewing the figures and expects to finalise them soon. It says the adjustment is necessary to determine the power generation cost accurately so that the project can meet its cost-benefit requirements.

Discussions have begun on the likely tariff for electricity from the nuclear power plant, estimated at around Tk 7 per unit, although the rate has not been finalised yet.

Although costs in dollars have not risen, the taka depreciation has pushed up the local currency burden sharply, said Zahid Hussain, former lead economist of the World Bank's Dhaka office.

He said the higher repayment costs will strain the budget. If revenue collection fails to improve, the deficit will widen.

"To cover that shortfall, the government may need to borrow again," he said.

In the first four months of the current fiscal year, debt servicing costs rose by 10 percent. In Taka terms, the increase was 13 percent, driven mainly by the weaker currency.

Hussain emphasised increasing revenue collection and reducing public spending to keep borrowing in check.

METRO PROJECTS HIT BY RISING COSTS

Cost pressures are not limited to the Rooppur plant. Rather, several metro rail projects in Dhaka also face higher bills.

The cost of Metro Rail Line 6, the country's first metro service, which now carries several lakh passengers daily on the Uttara to Motijheel route, has fallen slightly to Tk 32,717 crore from Tk 33,472 crore due to lower land acquisition costs under the government-funded portion.

However, costs under foreign loans have risen because of the weaker currency. Consultancy fees and repayment liabilities have increased, including an additional Tk 270 crore in foreign loan repayment linked to the depreciation.

The government approved the latest project costs this week.

Two other metro lines, Mass Rapid Transit-1 and Mass Rapid Transit-5, are also set for cost increases.

When the Japan International Cooperation Agency (Jica) funded projects were approved in 2019, they were valued at Tk 95,000 crore. Since then, the Taka has lost more than 40 percent of its value, meaning significant upward revisions.

An MRT-1 official recently informed Dhaka Mass Transit Company Limited (DMTCL) that the cost of Japan's funding package would rise to Tk 75,649 crore from Tk 39,450 crore, while the total project was originally estimated at Tk 53,977 crore.

A similar rise is expected for the 20-kilometre MRT-5 line from Hemayetpur to Bhatara through Gabtoli, Mirpur and Gulshan.

The project, split into ten packages, was approved at Tk 41,261 crore. The latest assessment shows Tk 15,527 crore will be needed for just one package, originally priced at Tk 3,968 crore.

Officials said talks are going on between Jica and the government to reduce the overall costs.

Global growth will slow to 2.6 per cent in 2025, down from 2.9 per cent in 2024, due to growing pressure from financial volatility and geopolitical uncertainty facing global trade and investment, the United Nations Trade and Development (UNCTAD) said in a report released on Tuesday.

The UNCTAD's Trade and Development Report 2025 shows that shifts in financial markets affect global trade almost as strongly as real economic activity, influencing development prospects worldwide, said the UN trade body, reports UNB.

The report said that despite potential gains from new technologies like artificial intelligence, global growth is projected to remain subdued in 2026, at 2.6 per cent.

UNCTAD said that its projection was based on a global growth aggregate using market exchange rate (MER) weights rather than purchasing power parity (PPP) weights used by the Organisation for Economic Co-operation and Development (OECD), with the latter leading to a higher global growth forecast. The OECD on the same day predicted that global GDP growth will slow from 3.2 per cent in 2025 to 2.9 per cent in 2026.

UNCTAD Secretary-General Rebeca Grynspan said the findings show how financial conditions increasingly determine the direction of global trade. "Trade is not just a chain of suppliers. It is also a chain of credit lines, payment systems, currency markets, and capital flows," she said.

The report said developing economies are forecast to grow by 4.3 per cent in 2025, significantly faster than advanced economies.

However, factors such as higher financing costs, greater exposure to sudden shifts in capital flows, and rising climate-related financial risks limit the fiscal and investment space that developing economies need to sustain growth.

The report noted that many developing economies with small domestic financial markets rely on external borrowing at significantly higher rates of 7 to 11 per cent, compared with 1 to 4 per cent in major advanced economies.

In addition, climate vulnerability adds to financial pressures, with countries repeatedly exposed to extreme weather paying an estimated 20 billion U.S. dollars more each year in interest.

UNCTAD called for a set of reforms to reduce financial vulnerability, improve predictability, and strengthen alignment among trade, finance, and development.

These measures include trade rule updates, policies to narrow data caps, international monetary system reforms, and the development of capital markets.

Bangladesh is witnessing a significant slowdown in import activities, with Letters of Credit (LC) settlements falling by 10% in November compared to the same month last year, a clear indicator of economic stagnation and reduced business investment.

Data from the Bangladesh Bank shows that LC settlements – payments made against previously opened import LCs – dropped to $4.87 billion in November 2025, down from $5.38 billion recorded in November 2024. This follows a previous year-on-year decline of 11.48% in October.

The opening of new LCs, which dictates future settlements, has also decreased, though at a slightly slower pace. LCs worth $5.57 billion were opened in November this year, a 4.62% reduction from the $5.84 billion opened in the corresponding period last year. This is an improvement from October, which saw a 12% year-on-year drop in new LC openings.

Infograph: TBS
Infograph: TBS

Slowdown linked to investment halt

Bankers and economists attribute the significant decline in settlements to a prevailing economic slowdown, reflected in the reduced growth of private sector bank credit.

A treasury head from a private bank told TBS that while the monthly average for import LC settlements typically ranges from $5.5 billion to $6 billion, the $4.87 billion settled in November is notably low.

"The main reason for this is the reduced number of LCs opened in July and August," the official explained. "Site LCs are settled about one and a half months after opening, while deferred LCs are settled six months later. Since LC opening picked up in September ahead of Ramadan, we might see settlement figures rise soon."

However, the core issue is the reluctance of businesses to invest.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said, "The economy is somewhat stagnant. Capital machinery imports have declined, and the volume of private sector bank credit has fallen.

"This indicates that businesses are not making new investments because the economy is in a sluggish mode. We might see this picture persist until the upcoming election, with a possibility of a turnaround afterwards."

Md Ahsan-uz Zaman, managing director and CEO of Midland Bank, agreed, "The slowdown in the economy may be causing fewer imports of capital machinery. Furthermore, there are various uncertainties about doing business in the country right now."

Bankers believe that a lack of new investment, hampered by political uncertainties, has reduced demand for capital machinery and raw materials, directly resulting in fewer LC settlements.

A senior Bangladesh Bank official confirmed this, noting, "There is no environment for new investment right now. Business is slow, so capital machinery imports are low. This reduces LC openings, which in turn reduces settlements."

Meanwhile, lower settlement volumes towards the end of November reduced dollar demand in the market, causing a decline in foreign exchange rates. To prevent excessive depreciation of the dollar, the central bank purchased $53 million from commercial banks on Sunday via auction – its first such purchase in two months. The move stabilised exchange rates, a senior banker confirmed.

The government and major edible oil importers and distributors have found themselves at odds after consumer-level prices of soybean oil were raised without any announcement this week – a move the government says was not approved and is illegal.

Bottled soybean oil in various shops across Dhaka has been selling for Tk9 more per litre than before.

After visits to Karwan Bazar, Mohammadpur and other markets, it was seen that five-litre bottles of leading brands like Rupchanda, Teer, Pushti and Fresh are now selling for around Tk965, while one-litre bottles – previously sold at Tk189 – are being priced at Tk198 in some markets. However, one-litre and two-litre bottles with the new pricing have yet to reach the market in sufficient quantities.

The government says the increase was made in violation of rules and has called a meeting tomorrow at the Secretariat to discuss action against the companies. Producers and distributors have also been summoned for the meeting.

Traders who hiked edible oil price by Tk9 without govt approval will face action: Commerce adviser

Speaking to reporters at the commerce ministry, Commerce Adviser Sk Bashir Uddin said, "The government knew nothing about raising oil prices. We only found out today. The companies have collectively increased edible oil prices. Such coordinated action is not acceptable in any way."

Asked what the government plans to do, he said, "We will decide the procedure after discussions. There is no legal basis for this."

When questioned about how traders could bypass the ministry and raise prices, he replied, "Ask the traders. We will take action; discussions are underway. Earlier, they tried to increase prices, but when we disagreed, they could not do it. If they have violated the law, visible action will be taken."

Govt can shut down refineries

AHM Shafiquzzaman, president of the Consumers Association of Bangladesh (CAB), warned that the government holds the authority to shut down refineries if companies raise prices without permission.

Edible oil prices jump by up to Tk13 per litre

Speaking to The Business Standard after attending a meeting at the commerce ministry yesterday, he said companies released the costlier oil into the market without government consultation.

The National Consumer Rights Protection Directorate will now investigate the matter and ask companies why the price was raised without approval, he added.

"On average, 5,000 tonnes of soybean oil are sold daily. When the price goes up by Tk9 per litre, consumers lose a huge amount in just one day," he said.

He added that the higher-priced oil has not yet reached all markets. "The new-price stock must be withdrawn from the market immediately," he said.

Refiners defend the move

However, the Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers Association claims the increase follows the rules, saying international market trends leave them with no option but to adjust prices.

90,000 tonnes soybean floating in river ports, slow delivery raises oil supply fear

The association's Executive Officer, Md Nurul Islam Molla, said, "When international prices rise, we must raise ours. When they fall, we reduce them. These products do not belong to any individual; global market data is known to everyone."

"We notified the Tariff Commission, Competition Commission, FBCCI, Bangladesh Bank – everyone – before increasing the price. No one can raise edible oil prices just because they want to," he added.

The refiners argue that failing to adjust prices in line with rising import costs would lead to losses and disrupt future imports.

"If prices were adjusted every 15 days or every month, the rise would be smaller – two or three taka at a time. There has been no adjustment for the past two to three months, which is why the increase is steep this time," Nurul added.

The association further noted that they reduced prices by Tk19 per litre in August when global palm oil prices fell.

Speaking to TBS, Meghna Group's General Manager, Taslim Hossain, said, "According to the rules, prices should be adjusted every three months. In August, prices were reduced. Since then, global prices have risen, but the government did not allow us to increase prices."

"We will have to sell at the new, higher price. Otherwise, we will incur losses," he said.

He also confirmed that the government has called a meeting with producers and distributors.

Sources at the Bangladesh Trade and Tariff Commission confirmed that companies applied on 10 November to raise prices starting 24 November.

The association set the price for bottled soybean oil at Tk199 per litre and Tk985 for five litres. It also set loose soybean oil at Tk179 per litre and palm oil at Tk169 per litre.

What the rules require

Under the Control of Essential Commodities Act 1956, the commerce ministry issued the Essential Goods Marketing and Distributor Appointment Order-2011.

It states that producers, refiners and importers of essential commodities may adjust prices through their trade associations – but must notify the ministry's monitoring cell, district administrators and upazila executive officers at least 15 days beforehand.

Traders claim they followed these procedures for the current increase.

In June 2021, the ministry also formed a high-level committee, including business representatives, to align edible oil prices with international market trends.

In August, the committee approved a slight price reduction following a global fall in prices. But in October, companies again tried to increase prices without approval, citing rising international rates.

The commerce adviser then warned that such action was unacceptable, and refiners backed down.

Despite the formal merger of five Shariah-based banks into the newly formed Sammilito Islami Bank and the commencement of its operations, the process to delist the five individual banks from the capital market has yet to start.

Regulatory authorities say they have not received any application or instruction to initiate the procedure, leaving thousands of general shareholders in uncertainty.

While the five lenders – First Security Islami Bank, Global Islami Bank, Social Islami Bank, Exim Bank, and Union Bank – have been legally amalgamated into a single institution, the regulatory steps required to remove their individual stocks from the exchanges remain in limbo due to a lack of coordination and procedural precedent, according to analysts.

According to senior officials at the Dhaka Stock Exchange (DSE), the bourse has not yet received any formal communication or application regarding the delisting of the five banks.

A senior DSE officer explained that under current market regulations, the exchange cannot unilaterally delist any company. The process requires explicit approval from the Bangladesh Securities and Exchange Commission (BSEC) before the exchange can take action to remove the scrips from the trading board.

This stance was corroborated by the capital market regulator. A senior officer at the BSEC said that the initiative must come from the issuer companies themselves. "First of all, the issuer firms must apply to the commission to delist from the capital market. However, the commission is yet to receive such an application."

He added that once an application is submitted, the regulator will determine the delisting method in compliance with relevant securities laws.

The delay appears to stem from confusion regarding decision-making authority. An administrator from one of the five merged banks stated that the appointed administrators do not have the mandate to make decisions regarding delisting, claiming the matter depends entirely on the Bangladesh Bank.

However, the central bank has clarified that it will not intervene directly in the capital market procedures. Arif Hossain Khan, spokesperson and executive director of Bangladesh Bank, told TBS that the five banks are now operating under the umbrella of Sammilito Islami Bank. He emphasised that the responsibility lies with the new entity's leadership.

"The board of Sammilito Islami Bank will decide how to delist the five banks from the capital market. The Bangladesh Bank has no role in the delisting procedure; rather, it can only observe the activities," Khan said.

He further acknowledged the complexity of the situation, noting, "Since this is the first time in the country that listed banks have been merged into a new licensed entity, some confusion is natural. The decisions will be made collaboratively among all stakeholders to avoid any adverse impact."

Although Sammilito Islami Bank has begun its journey with a new licence, it has not yet finalised its corporate structure. According to Bangladesh Bank sources, a scheduled board meeting today (3 December) was postponed as the managing director and company secretary have not yet been appointed.

The merger follows a decisive move by the central bank earlier this month. On 30 November, a special board meeting chaired by Bangladesh Bank Governor Ahsan H Mansur finalised the decision to merge the five troubled lenders into a single new entity. The central bank formally handed over the license for the new bank on 1 December.

The new entity has been established with a paid-up capital of Tk35,000 crore. Of this amount, the government is providing Tk20,000 crore, while the remaining Tk15,000 crore is being raised through the conversion of deposits into shares. The bank's authorised capital has been set at Tk40,000 crore.

Mohammad Ayub Miah has been appointed as the chairman of the new bank, and its head office is located at Sena Kalyan Bhaban in Dhaka's Motijheel. The other board of directors of the bank are Secretary to Legislative and Parliamentary Affair Division Hafiz Ahmed Chowdhury, Secretary of the Chief Adviser's Office M Saifullah Panna, Secretary of the Ministry of Religious Affairs Md Kamal Uddin, Secretary of the Economic Relations Division Md Shahriar Kader Siddiky, Joint Secretary of the Finance Division Md Rashedul Amin and FID's Joint Secretary Sheikh Farid.

Attempts to reach Mohammad Ayub Miah for comments regarding the delisting roadmap were unsuccessful.

Under current capital market rules, issuer firms usually apply to the commission for delisting by offering to buy back free-float shares at a price determined through a valuation process. A recent precedent involves Beximco Synthetic, which delisted from the market by buying back its free-float shares at a face value of Tk10 each. However, given the financial health of the merged banks, it remains unclear if a similar buyback model is feasible.

In early November, the central bank dissolved the boards of the five troubled banks and appointed administrators to facilitate the merger. On 6 November, the stock exchanges suspended trading of their shares following a Bangladesh Bank directive.

The market capitalisation of the five banks currently stands at Tk1,329 crore, with a total of 582 crore shares outstanding. The shareholding structures vary significantly across the five institutions, posing a challenge for a unified delisting strategy.

As of 31 October, First Security Islami Bank had the highest public exposure, with general investors holding 65.05% of its shares, while sponsors and directors held only 5.90%. In contrast, Social Islami Bank is heavily held by institutions, which own 68.54% of the company, with public holding at 18.97%. Union Bank has a majority sponsor holding of 54.49%, while Global Islami Bank has zero foreign investment and a 53.37% institutional holding. Exim Bank's structure is more balanced, with 32.44% held by sponsors and 39.31% by the public.

A mobile court operation was conducted in Ashulia and Gorat areas of Savar to protect national resources by removing illegal gas connections, the Ministry of Power, Energy, and Mineral Resources said yesterday (3 December).

During the operation, approximately 3 kilometers of unauthorised gas distribution lines were dismantled. Around 700 illegal residential gas burners were disconnected, and 600 meters of unauthorized pipes were removed. The immediate disconnected gas load reached 14,700 cubic feet per hour.

Authorities estimate that the crackdown will save 99,902 cubic meters of gas per month, valued at roughly Tk1,798,236. No fines were imposed during the operation.

Officials stated that such drives will continue to ensure uninterrupted gas supply to legitimate customers and prevent wastage.

Bangladesh Power Development Board (PDB) is suffering steep financial losses as state-owned Barapukuria Coal Mining Company Limited (BCMCL) continues to charge a fixed coal price of $176 per tonne, well above international benchmark rates, which are currently hovering between $116 and $121 depending on the index.

PDB says the inflated rate has pushed its annual losses above Tk1,000 crore and increased the cost of power generation at the Barapukuria coal-fired power plant.

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Infographics: TBS
Infographics: TBS
According to PDB data, the coal pricing alone caused losses of Tk1,742.26 crore in the 2024-25 financial year, driven by dollar exchange rate volatility and high production costs.

Barapukuria Power plant is located in Dinajpur, with two units – one 125MW and another 275MW commissioned in 2006, and is operated by PDB.

PDB Chairman Md Rezaul Karim said the price disparity is causing heavy financial strain.

"BCMCL is charging $176 per tonne, which is far above the international market. A decision has been taken to pay following the Indonesian Coal Index-1 (ICI-1), but BCMCL refuses to follow it," he said.

He also noted that BCMCL distributes significant profits among its employees – around Tk40-50 lakh each – made possible by the inflated pricing.

BCMCL had earlier sought an even higher coal price of $201.56 per tonne.

The company now earns a profit of $54.99 to $57.47 per tonne, generating annual profits of Tk444.29 crore in FY2022-23 and Tk581.03 crore in FY2023-24.

BCMCL Managing Director Md Abu Taleb Farazi, however, defended the pricing, saying the Energy Division set the price in 2022 and that it reflects operational expenses and future mine expansion costs.

Now, with no government subsidy to absorb the inflated coal cost, the Barapukuria power plant is struggling to meet its energy payment obligations, raising concerns about its operational stability and reliability, according to PDB officials.

Price gap with global market, deepened loss

Coal prices on major international indices between January 2024 and September 2025 remained well below BCMCL's fixed rate. Benchmark prices averaged between $100 and $122 per tonne.

A comparative review of international coal prices during the period shows that PDB is paying over 45% more for Barapukuria coal.

The Australian Newcastle Index averaged $121.85, Indonesia's HBA 6322 stood at $117.85, and the Indonesian ICI 6500 was $116.58 per tonne. Even South Africa's RB 6322, one of the lowest benchmarks, was just $100.68.

This means PDB has been paying between $54 and $75 more per tonne than comparable global rates, sharply raising power generation costs and contributing to its mounting annual financial losses for the state-owned power management company.

The organisation posted losses of Tk1,023.22 crore in FY2022-23, Tk1,190.47 crore in FY2023-24, and a staggering Tk1,742.26 crore in FY2024-25.

The latest surge was driven by high coal prices and a sharp rise in the US dollar, increasing dollar-denominated payments.

BCMCL profits surge

While PDB plunges deeper into financial losses, Barapukuria Coal Mining Company Limited recorded unprecedented profit growth since the coal price was fixed at $176 per tonne in January 2022.

The company posted profits of Tk444.29 crore in FY2022-23, Tk581.03 crore in FY2023-24, and an audited Tk851 crore in FY2024-25.

A major factor has been the increase in the US dollar exchange rate. Although most BCMCL expenses – such as salaries, royalty, depreciation, and taxes – are paid in Bangladeshi Taka, payments from PDB are made fully in dollars.

The exchange rate shift from Tk84 to Tk122 per US dollar has boosted BCMCL's earnings by more than 45%.

Imported coal comparisons

After analysing imported coal pricing data, a stark gap was seen between PDB's coal costs and those paid by other major coal-fired plants.

While PDB paid $92.92 per tonne for 5000 GAR coal, other plants sourced fuel at significantly lower international benchmark rates.

BCPCL's 1,244MW Payra plant bought coal at $76.16 under the Newcastle Index, and Rampal Power Plant secured supplies at $73.84 following the ICI-2 index, compared with PDB's $90.08 for similar grades.

SS Power's 1,244MW unit paid $71.49 under ICI-3, against PDB's $87.22. Even Adani Power paid only $76.91 using a blended Newcastle – HBA2 reference, whereas PDB paid $91.20 for equivalent coal.

Imported coal averaged $74.76 per tonne FOB, and the equivalent value for Barapukuria-grade coal stands at $91.20. Since Barapukuria coal is delivered without shipping costs – typically $10.92 to $21.94 per tonne – PDB says $91.20 per tonne is an appropriate benchmark.