Taiwan is aiming for tariffs on its exports to the United States to be cut to 15 percent from 20 percent now, though help in training US workers is not among the "conditions" figuring in their trade talks, senior Taiwan officials said on Monday.

A major semiconductor producer, Taiwan has repeatedly said its offer to the United States in talks has been the "Taiwan model", to help replicate the island's success in building tech clusters around dedicated science parks.

Responding to questions in parliament, Taiwan's top trade negotiator, Jenni Yang, said the aim was for the rate to be dropped to 15 percent.

Last week Reuters reported that President Donald Trump's administration was negotiating a deal that could commit Taiwan to fresh investment and training of US workers in chip making and other advanced industries, though sources familiar with the matter said details might change before the deal was finalised.

TSMC, the world's largest contract chipmaker, is investing $165 billion in the United States to build factories in Arizona.

If TSMC needed government help in training its workers, that could be discussed, Taiwan Economy Minister Kung Ming-hsin said, adding, "This is not one of the negotiating conditions," in the US talks, however.

Neither Kung nor Yang would give an exact timeframe for a pact to be struck, though Yang said the government would work to complete it before the end of this year.

Taiwan's semiconductor exports are not subject to the US tariffs of 20 percent.

In August, Trump said the United States semiconductor imports would face a tariff of about 100 percent, but exempted companies manufacturing in the United States, or those which have committed to do so.

Such companies include TSMC, though US officials are privately saying they might not levy the tariffs soon, Reuters reported last month.

The Dhaka Stock Exchange and the Chittagong Stock Exchange began the first trading hour on Monday with a downward trend, as the share prices of most listed companies declined.

At the DSE, the benchmark DSEX index fell by 29 points, while the Shariah-based DSES dropped 5 points and the blue-chip DS30 index slipped 10 points.

Market breadth remained negative, with prices falling for 254 companies against gains in only 71, while 56 issues remained unchanged.

More than Tk 2.10 billion worth of shares and units were traded during the first half of the session.

The downtrend persisted at the CSE as well, where the overall index lost 13 points.

Prices declined for 65 companies compared to gains in 36, while 9 issues stayed unchanged.

The turnover at the bourse stood at Tk 14 million in early trade.

Bangladesh and Germany signed two separate loan agreements for a total of €160 million for a project titled "Climate Change Adapted Drinking Water Resources Management Dhaka II (Saidabad WTP Phase III)" at the Economic Relations Division today (1 December).

The two countries inked a loan agreement for an additional €70 million to the main loan and an amendment agreement to the main loan of €90 million, according to a press release.

Economic Relations Division Secretary Md Shahriar Kader Siddiky, Carla Berke, head of division, Urban Development (South Asia), KfW Frankfurt, and Stefanie Klappenbach, principal portfolio manager, Urban Development (South Asia), KfW Frankfurt, signed the agreements on behalf of their respective governments.

The main objective of the project is to establish an environmentally friendly, sustainable, and people-friendly water supply system and to reduce dependency on groundwater by ensuring the efficient use of surface water.

The project is being implemented by Dhaka Water Supply and Sewerage Authority (Wasa) under the Local Government Division. The Regional Development and Protection Programme (RDPP) of the project was approved by the Executive Committee of the National Economic Council (Ecnec) on 23 March 2025.

The total estimated cost of the project is Tk16,014.83 crore, of which the government of Bangladesh will contribute Tk4,536.17 crore, the project loan amounts to Tk11,448.66 crore, and the implementing agency will contribute Tk30 crore. The project implementation period is from 1 July 2015 to 30 June 2029.

Under the loan agreement, KfW Development Bank will provide Bangladesh with an additional €70 million (approximately Tk988 crore).

The financing will be used to construct a raw water intake and raw water pumping station on the Meghna River at Haria, build approximately 26km of raw water transmission pipeline with an estimated diameter of 2,200mm, and expand and upgrade approximately 54km of the primary distribution network for supplying treated water.

Due to the additional €70 million financing for the project, the disbursement period of the original €90 million loan has been revised from 27 June 2024 to 31 December 2026, and the total financing amount has changed accordingly. As a result, the amendment agreement has been signed.

The government of Germany has been a long-standing development partner of Bangladesh. Since 1972, the total commitments of the German government in financial and technical cooperation amount to approximately €4 billion.

At present, KfW Development Bank is financing 13 projects in Bangladesh, including €647.50 million in loans and €170 million in grants.

Gold prices were mostly steady after hitting a six-week high on Monday as early risk-off sentiment set the tone, with investors focused on a potential US rate cut later this month, while silver touched a record high.

Spot gold was down 0.1% to $4,225.91 per ounce as of 0534 GMT after touching its highest since 21 October. US gold futures for December delivery gained 0.1% to $4,260.20.

Silver jumped 0.7% to $56.78 per ounce after earlier hitting an all-time high of $57.86.

US stock futures were lower in Asian trade, while among cryptocurrencies, bitcoin fell 3.6% to $87,881.82 and ether dropped 5% to $2,871.59.

Recent dovish remarks from Federal Reserve Governor Christopher Waller and New York Fed President John Williams, alongside softer US data, have reinforced expectations that the Federal Reserve will ease policy in December. Futures imply an 87% chance of a rate cut, according to the CME's FedWatch tool.

White House economic adviser Kevin Hassett, seen as a frontrunner for Fed Chair, said on Sunday he would be happy to take the job if appointed by President Donald Trump. Like Trump, Hassett believes rates should be lower.

Markets now await core US Personal Consumption Expenditures figures on Friday for further cues on the Fed's policy path.

Lower borrowing costs tend to support non-yielding bullion.

Silver prices have moved higher amid thin liquidity caused by the CME outage last week, rather than any fundamental factors, Wong added.

Among other precious metals, platinum rose 0.6% to $1,683.03, while palladium gained 1% to $1,465.44.

Several investors on Sunday complained about a sudden crash in several cryptocurrencies, including Bitcoin and Dogecoin. "What is Bitcoin down today?" one of them asked on social media. Another one added: "Is there a reason behind this crash?"

At the time of writing this story, Bitcoin was down about 3% in the last hour. Ethereum was down over 4.5% in the same period, as per price tracking website CoinMarketCap.

"Crypto off to a rough start as nearly $400,000,000 longs were liquidated in the last hour," one person posted on X, platform formerly known as Twitter.

"Not sure who needs to hear this, but crypto is going to zero rn. 😄" another person added. They also attached a screenshot of a price tracker.

As of now the reason behind the sudden drop in crypto prices is unknown. Cryptocurrency prices are highly volatile and can fluctuate dramatically within short periods of time. Market movements may be influenced by regulatory changes, technological developments, investor sentiment, and global economic factors.

Bloomberg reported that Bitcoin slid as much as 4.3% to below $88,000 in early Asia trading. It added that Ether dropped 6% to below $2,900.

"It's a risk off start to December," Sean McNulty, APAC derivatives trading lead at FalconX, told the publication. "The biggest concern is the meagre inflows into Bitcoin exchange traded funds and absence of dip buyers. We expect the structural headwinds to continue this month. We are watching $80,000 on Bitcoin as the next key support level."

The coming week will deliver an important read on the strength of the US economy, offering fresh clues for policymakers debating how aggressively to move on interest rates through 2026.

Adding to the focus on monetary policy, President Donald Trump said Sunday that he has chosen a nominee for the next Federal Reserve chair, a selection he has repeatedly linked to his desire for lower borrowing costs.

Across markets, Asian stocks wavered in early Monday trading after logging their strongest weekly performance in nearly two months. US equity sentiment was more cautious, with S&P 500 futures slipping slightly.

Private sector credit growth in Bangladesh has continued its downward trend, falling to its lowest point in four years in October 2025, according to Bangladesh Bank data.

Central bank figures show that private sector credit growth stood at 6.23% at the end of October this year, slightly down from 6.29% in September. A year earlier, in October 2024, growth was recorded at 8.30%.

Economists and bankers describe the persistent slump as a cause for concern. According to them, the decline is mainly due to the fall in new investment since August last year.

With businesses reluctant to expand, demand for capital machinery has also decreased – leading to lower borrowing. They also noted that businesspeople are facing various obstacles while trying to operate their businesses.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, said, "The main reason for falling private credit growth is weak new investment. When there is no new investment, imports of capital machinery fall and loan demand drops. There is no sign of a turnaround in investment, and that is the biggest factor behind the slowdown."

He added that the earlier practice of borrowing for fraudulent purposes has declined, while dollar shortages that previously limited import payments have eased.

"But one major problem now is the energy crisis. Many factories are struggling to operate because of gas shortages," he said.

According to Bangladesh Bank data, capital machinery imports fell by around 9.5% during July-October.

Moreover, non-performing loans (NPLs) have surged to a historic high of Tk6.5 lakh crore, equivalent to about 35% of total disbursed loans. With a large share of funds stuck in defaulted loans, many banks remain under financial stress and are cautious about fresh lending.

Dr Ashikur Rahman, principal economist at the Policy Research Institute of Bangladesh, said, "There is stagnation in new investment. When investment rises, capital machinery imports increase too – but right now business expansion is simply not happening."

Regarding NPLs, he said, "There are both supply and demand issues. NPLs are very high, so banks are very careful about whom they lend to. Banks are looking for safe areas for credit."

Md Touhidul Alam Khan, managing director and CEO of NRBC Bank, said, "Some banks are facing liquidity pressures and a rise in non-performing loans, which restricts their capacity and willingness to extend fresh credit. High inflation and elevated borrowing costs are also holding back private credit growth."

Political uncertainty slows decision-making

Economists and bankers also noted that the current political environment has further discouraged business investment, with many waiting for clarity after the national election.

Touhidul said, "The slowdown in private sector credit can be attributed to a simultaneous decline in both credit demand and supply. On the demand side, political uncertainty has led to cautiousness among investors, resulting in delays in new investment decisions."

Dr Ashikur said, "Over the next three months, new investment will remain limited. Much depends on whether a new political government improves the business environment. The economy is in a very difficult reality."

Touhidul stressed that to restore lending momentum, banks and businesses needed stability and confidence. "First and foremost, sustained political stability and a predictable policy framework are vital to ensure that entrepreneurs can plan and invest with certainty."

"Additionally, strengthening the banking sector through enhanced governance, improved recovery processes for non-performing loans, and necessary liquidity support will empower banks to lend more confidently and competitively," he said.

'No right environment' for investment

Business leaders say they are struggling simply to sustain existing operations, let alone expand.

Taskeen Ahmed, president of the Dhaka Chamber of Commerce & Industry (DCCI), highlighted two major concerns – law and order and the energy crisis.

He also said there were doubts whether conditions would improve even in the next two years.

"It may take a year and a half after the national election for an investment-friendly environment to develop. In a country where law and order is not stable, on what grounds will businessmen make new investments?," he added, further noting that foreign investors will also not invest in such an environment.

"At present, the energy crisis is the biggest challenge because in many places the gas supply is not adequate," Taskeen said.

Meanwhile, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said, "Bank loan interest rates are very high. It has become very challenging to run businesses with such high rates."

Banks turn to government securities for income

Private sector lending has slowed, prompting banks to increase their investment in treasury bills and bonds. A senior private bank official said reduced loan demand has pushed banks toward these instruments.

A major share of traditional banks' income now comes from such investments.

Although early 2025 brought concerns over rising deposit rates, persistent inflation, weak loan demand, squeezed margins and political uncertainty, the opposite unfolded.

Private banks, especially stronger ones, saw profits grow, not through loan expansion but through substantial earnings from government securities, which have become the sector's new lifeline and reshaped bank balance sheets.

BRAC Bank, for example, saw its investment income surge from around Tk700-800 crore between 2020 and 2022 to Tk2,880 crore in 2024, nearly a four-fold rise.

Rice, fish, and meat remained the dominant drivers of food inflation in October, accounting for 99.78 per cent of the total, while a continued decline in vegetable prices helped temper overall price pressures, according to the General Economics Division (GED) of the Planning Commission.

The November edition of the Economic Update and Outlook shows rice alone contributed 47.01 per cent to food inflation, followed by fish at 39.33 per cent and meat at 13.44 per cent, while vegetables posted a negative contribution of 20.57 per cent.

The report released on Monday offered a cautiously optimistic outlook ahead of the next national election, projecting growth on the back of resilient remittances and exports, while warning that persistent inflation, subdued business confidence, and a fragile banking sector continued to weigh on the economy.

It added that heightened election-related spending and possible political disruptions could restrain domestic demand and investment unless a clear post-election mandate enabled reforms to improve the business climate, strengthen the financial sector, and stabilise energy and fiscal conditions.

The report revealed that medium-grain rice accounted for 19.54 per cent of food inflation in October, followed by coarse rice at 16.81 per cent and fine rice at 7.20 per cent.

The rise in Pangas fish price alone contributed more than 12 per cent to overall food inflation.

In contrast, several perishable items exerted a downward pull on inflation, while potatoes contributed -18.31 per cent and onions -5.23 per cent, broadly consistent with their trends in September.

Overall inflation eased to 8.17 per cent in October, down from 10.87 per cent in the same month a year earlier, supported by a gradual stabilisation of domestic supply chains and reduced pressure from imported commodities.

The decline was driven primarily by a sharp fall in food inflation, which dropped to 7.08 per cent from 12.66 per cent in the corresponding month last year.

In contrast, non-food inflation edged up to 9.13 per cent, reflecting persistent cost pressures in housing, transport, and healthcare.

The report noted that rice prices, which remained elevated in the first half of the year, had begun to soften.

With new Aman harvests reaching the market and domestic stocks rising due to imports and public procurement, the average retail prices of major rice varieties had started to decline.

"As Bangladesh heads toward its scheduled general election in February 2026, the economic outlook is cautiously optimistic," the report said.

On the one hand, economic growth is expected to rebound, with the Asian Development Bank (ADB) forecasting around 5 per cent gross domestic product (GDP) growth in the current fiscal year after a slower period, while remittances and exports, especially garment, remain key sources of foreign exchange and economic resilience.

On the other hand, persistent inflation, weak business confidence, and a fragile banking sector could limit domestic demand and private investment, the report said.

It said many investors and entrepreneurs appeared to be waiting for political stability before launching new ventures.

Moreover, increased election-related spending and potential disruptions associated with political transition may add pressure on inflation and the foreign exchange market, complicating efforts to stabilise prices and attract investment.

If the election delivers a clear political direction and the next government pursues reforms, especially to improve the business environment, stabilise banks, and ensure energy and fiscal stability, Bangladesh could regain momentum, the report concluded.

A survey supported by two international agencies has found jacked-up US tariff's emerging but uneven business impacts on Bangladesh's garment export as factories mostly linked to the American market are already showing signs of strain.

High market concentration with exports heavily reliant on the European Union and the United States is also identified with mixed impacts. The survey shows EU exposure offers some relief at a time when factories' concentration on the US market is "already in a strained state".

The Better Work Bangladesh (BWB) survey report, titled 'Assessing the early impacts of tariff uncertainty on the garment sector in Bangladesh', was published recently. It is a joint initiative along with the International Labour Organisation (ILO) and the International Finance Corporation (IFC).

Through its regular factory assessments, BWB monitors compliance with national labour law and international labour standards in about 490 factories that supply to 50 global brands across eight key clusters.

Production volumes in the first quarter of 2025 remained relatively stable compared with the same period in 2024, though not evenly across markets, according to the findings.

Nearly half of factories, or 46 per cent, reported no major change in output, while around one-third (34 per cent) experienced increases and 16 per cent reported declines.

Factories exporting to the United States were about 14-percentage- point less likely to report an increase in production than those exporting elsewhere, while exporters to the European Union were around 16-percentage-point more likely to report higher production, says the report.

According to the survey output, most factories are resilient with medium-term orders and stable sourcing links though risks included retrenchments and worker grievances as early warning signs.

"Shorter-order pipelines in some markets underline the sector's vulnerability to prolonged or renewed shocks," the report says.

A majority of factories had secured medium-to long-term orders as 64 per cent reported that they have commitments for the next three to six months, and 30 per cent had orders stretching beyond six months.

The analysis of trade metrics suggests factories linked to the EU were more likely to report holding medium-term contracts but less likely to secure longer-term orders, potentially reflecting more cautious purchasing strategies.

More than half of respondents (53 per cent) indicated that their current pipeline of orders and raw materials would allow them to sustain operations for at least three months, reducing the risk of immediate disruption.

However, it says vast majority of factories (92 per cent) reported no buyer discontinuation in 2025 with only a small minority having experienced disruption while 6.0 per cent lost one buyer and fewer than 3.0 per cent lost multiple buyers.

Amid the uncertainty created by the new ramped-up US tariffs, the BWB launched a Factory Pulse Tracker Survey to quickly assess how the policy shift was affecting factories' expectations, production, and workforce dynamics.

Implemented online via Qualtrics in May 2025, the survey gathered 323 responses, covering around 65 per cent of BWB-listed factories, focusing on factory performance, buyer relations, production trends, business sustainability, workforce dynamics, and overall business sentiment.

The BWB says this timing allowed the programme to capture early reactions precisely when uncertainty was the highest, providing timely evidence for policymakers, industry stakeholders, and partners to inform mitigation strategies.

In 2024, Bangladesh received US$38.48 billion from garment exports, underscoring the sector's vital role in driving growth and job creation.

The country's RMG industry depends heavily on access to international markets, particularly the European Union and the United States which together accounted for over 60 per cent of export revenues in fiscal year 2024-25.

This reliance makes the sector especially vulnerable to changes in trade policy, tariffs, and global demand, and because of the new US tariff regime, the trade relation between the two countries reached a critical turning point.

The Trump administration in April 2025 introduced a reciprocal tariff of 37 per cent on Bangladeshi exports, in addition to an existing 15-percent duty, raising the total tariff incidence to 52 per cent. The rate was, however, later reduced to 20 per cent in August this year following several rounds of negotiations that includes an increase in imports from the United States, in a tradeoff.

During January-August period of 2025, garment exports to the US market fetched Bangladesh US$5.64 billion, marking a 19.83-percent growth, according to US official data.

Bangladesh's external sector improved last year as reserves and remittances grew, though trade remained unstable.

Exports dipped in April and June before recovering, while garment shipments and imports showed mid‑year declines followed by modest rebounds later in 2025, according to a government report.

Gross reserves climbed from $24.35 billion in November 2024 to $32.34 billion in October 2025, while BPM6 reserves rose from $18.61 billion to $27.58 billion.

According to the Economic Update & Outlook November 2025 report by the General Economics Division and the Bangladesh Planning Commission, stronger inflows and prudent management drove the steady rise.

Remittances also provided resilience, consistently surpassing the previous year's levels.

Inflows peaked in March, September, and December 2024, and again in May and October 2025.

The October inflow stood at $2.56 billion, remaining higher than last year's $2.40 billion.

Trade indicators were more volatile. Export earnings fluctuated, dipping sharply in April and June 2025 before recovering moderately.

Export earnings were $3.80 billion in September 2024, hitting a peak of $4.77 billion in July 2025, then declining to $3.82 billion in October.

Readymade garments (RMG) continued to dominate exports, mirroring overall trade trends.

In October, RMG exports stood at $3.02 billion, though still below the mid-year peak. Non-RMG exports followed a similar mid-year slowdown before improving later.

Import payments remained unstable, marked by a sharp contraction in June 2025 — the lowest in the series — followed by a rebound in July and renewed fluctuations through September.

These shifts reflected global demand changes, domestic import rules, and commodity price movements.

Despite trade volatility, the report said rising reserves and strong remittances contributed to an improving external position as Bangladesh entered late 2025.

The report noted that the economic outlook is cautiously optimistic as the country approaches its February 2026 general election, with the Asian Development Bank forecasting GDP growth of around 5 percent in FY26, supported by remittances and exports.

However, risks including persistent inflation, weak business confidence, and a fragile banking sector could weigh on demand and investment.

Election-related spending and potential disruptions may also pressure inflation and the foreign exchange market.

The Bangladesh Bank has officially included the newly formed 'United Islami Bank' in its list of scheduled banks, effective today (1 December).

A notification issued by the central bank this evening confirmed the inclusion.

The move follows the central bank's final approval yesterday to merge five underperforming Islamic banks – First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and EXIM Bank – into the new 'United Islami Bank'.

Cenbank gives final approval to merge 5 Shariah-based banks into 'United Islami Bank'

According to central bank officials, with the final nod, the merged bank can now formally start operations. The Bangladesh Bank has announced that detailed guidelines, covering depositor payments, profit rates, salary structure and other operational issues, will be issued soon.

In a statement earlier today, the central bank assured depositors that none of them will lose their money, and all deposits will remain fully protected.

Ordinary depositors will be allowed to withdraw up to Tk2 lakh, with the highest priority being given to small depositors during the initial settlement phase. A plan for deposits exceeding Tk2 lakh will be announced shortly.

On 9 November, Bangladesh Bank issued a Letter of Intent approving the creation of United Islami Bank PLC. The new government-owned bank will have a paid-up capital of Tk35,000 crore, of which Tk20,000 crore has already been contributed by the government.

To ensure investment income for the new bank, the new bank is expected to invest Tk10,000 crore in the Shariah-based sukuk bond. This is expected to generate Tk800-900 crore in income for the bank.

After four days of complications and delays, a shipment of goods from Thailand has finally departed for Bhutan through the Burimari land port in Lalmonirhat under the Bangladesh-India-Bhutan trilateral transit arrangement.

The move has brought relief to traders and stakeholders at the land port.

At around 5:30 pm on Monday, the container—brought by sea to Chattogram Port from Thailand—was placed at the zero line after being transported to the Burimari land port.

After verifying the required documents, the container was loaded onto a cargo truck under the supervision of Benko Limited and sent toward the Changrabandha land port in Cooch Behar district, West Bengal, India.

According to Burimari Customs and the C&F Agents Association, although the container arrived in Burimari on November 28, Bangladesh customs could not release the shipment without India's approval.

Firstly, due to public holidays in both India and Bhutan, it took time to send and process the necessary documents.

Secondly, the Burimari route was not mentioned in the secretary-level trilateral trade agreement, causing administrative scrutiny and delays.

On Monday afternoon, Kolkata customs in India sent the approval documents for the transhipment to Changrabandha customs.

After Changrabandha customs officially informed Bangladesh customs, the container was promptly sent across the zero line.

Faruk Hossain, president of the Burimari C&F Agents Association and owner of Benko Limited, said, "It took time to obtain the approval due to holidays in India and Bhutan, and because the Burimari route was not included in the trade agreement."

"After completing all procedures, Indian customs issued the clearance. With transhipment through the Burimari route resuming after a long gap, we are hopeful," he said.

He added that the container will remain in the custody of India's Changrabandha Customs for now. On Tuesday, it will head toward Phuentsholing, Bhutan, via the designated Indian transit route.

According to him, regular use of this route would further increase import-export activities at Burimari land port and boost the local economy.

Delwar Hossain, assistant commissioner (AC) of Burimari Land Customs Station, said, "After receiving India's approval, the Thai shipment has been sent to the Changrabandha land port. From there, it will reach Bhutan using the Indian road transit corridor."

He further noted that once the trilateral transit agreement is fully implemented, movement of goods through this route will become easier and contribute to strengthening Bangladesh's regional connectivity.

Bangladesh's shift to competitive bidding for renewable energy projects has led to lower tariffs, but key challenges remain in transparency, accountability, and efficiency, according to a new study by the Centre for Policy Dialogue (CPD).

Unveiled yesterday at a national dialogue in Dhaka supported by the Australian High Commission, the study analysed 55 solar project tenders floated between December 2024 and March 2025 under the reinstated Public Procurement Act 2006 and the Public Procurement Rules.

The reinstated laws replaced the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010, which allowed unsolicited contracts.

"Transparency has improved, but not enough," Khondaker Golam Moazzem, research director at CPD, said at the event. "Barriers for local firms, poor access to information, and low trust continue to hamper fair competition."

The study found that 41 percent of bidders reported leaks of sensitive data such as bid prices, while only 30 percent believed the evaluation process was largely transparent.

The study found that 41 percent of bidders reported leaks of sensitive data such as bid prices, while only 30 percent believed the evaluation process was largely transparent

Of 105 firms that purchased tender documents, only 44 submitted bids, and many large-scale projects above 100 MW received no bids due to strict financial requirements.

The average number of bids per package was just 1.4, raising questions about the effectiveness of competition.

On the positive side, the shift to open bidding resulted in a 24.6 percent drop in average tariffs, from $0.10 per unit to $0.08 per unit, highlighting the benefits of competitive procurement.

However, firms cited barriers such as unrealistic conditions, slow approval processes, complex land issues, and the absence of digital tendering.

Moazzem noted that while the Quick Enhancement Act initially addressed acute power shortages during the previous regime, it was eventually exploited by local and international interest groups.

He said the reintroduction of the Public Procurement Act and rules marks a positive shift but stressed persistent issues regarding efficiency, transparency, and private sector participation.

M Rezwan Khan, chairman of Power Grid Company Bangladesh PLC (PGCB), warned of systemic inefficiencies, noting, "We have nearly 28,000 MW of generation capacity, but demand is far lower. We're paying costly capacity charges due to uncoordinated expansion."

He also criticised the slow approval process – projects currently require up to 29 permissions – and flagged tariff losses due to delayed adjustments.

"The current tariff is based on a dollar rate of Tk 85, while the actual rate is Tk 122."

Muhammad Fouzul Kabir Khan, adviser to the Ministry of Power, Energy and Mineral Resources, joined virtually and explained that the absence of implementation agreements in new tenders reflects a conscious shift towards direct procurement.

"This is not project finance; it's service procurement," he said, adding that reliance on competitive tariffs provides a stronger financial safeguard than legacy legal guarantees. "Government liabilities from past IAs reached $3.2 billion. We're moving away from that."

He stressed that competitive bidding would ensure affordability. "If tariffs are reasonable, utilities can pay. But no utility can absorb Tk 21 per unit."

Clinton Pobke, deputy head of mission at the Australian High Commission, praised the repeal of the 2010 Special Act as a vital step.

Noting Australia's ongoing support through think-tank collaboration, policy development with the World Bank and IFC, and private sector engagement, he also said, "Evidence-based policies can lead to higher growth, more jobs, and better environmental outcomes."

David Hasanat, president of the Bangladesh Independent Power Producers' Association, called for a more realistic, business-friendly procurement approach.

"You can draft perfect policies, but without proper implementation, they'll fail like a banker with no returns," he said, noting that policy comparisons with countries like Saudi Arabia overlook differences in solar radiation and efficiency.

"Unlike India, where non-farming land acquisition is streamlined, we face legal and bureaucratic delays," he added.

Han Kun, president of the Chinese Enterprises Association in Bangladesh, stressed the importance of enabling policies, particularly sovereign guarantees, to attract foreign investment.

"In the last 10 years, Chinese investors accounted for 55 percent of 8,000 MW in private power additions. Yet Bangladesh's renewable share remains below 3 percent—far behind Vietnam (6.3 percent) and Cambodia (61 percent)," he said.

Kun warned that without guarantees against currency fluctuations, payment delays, and repatriation risks, investors would remain hesitant. "Government-backed guarantees are crucial to build trust and secure competitive financing in the renewable energy sector," he added.

The Dhaka Stock Exchange (DSE) extended its losing streak for the second consecutive day, as cautious 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 said the move to liquidate the troubled NBFIs has created renewed anxiety among investors, who fear potential spillover effects across the financial sector.

Coupled with the ongoing political tensions, this uncertainty has prompted many investors to shift to a risk-off approach, accelerating sell-offs and pushing key market indices further downward, they said.

On Monday, the DSEX index decreased 64 points, closing at 4,915, while the blue-chip DS30 index dropped 21 points to settle at 1,896. The Shariah index (DSES) also shed 16 points, ending at 1,029.

Market turnover decreased by 15.62% to Tk416 crore, from Tk493 crore in the previous session. Out of 388 traded issues, 38 advanced, 322 declined, and 28 remained unchanged.

Market insiders said that as the market became oversold, investors had slowly begun to return to the trading floor. But at that very moment, the Bangladesh Bank's decision to wind up the NBFIs had a sharply negative impact on market sentiment.

They said the announcement triggered panic, prompting many investors to rush into selling shares. They added that a new fear has emerged: whether more companies will end up on a similar closure list.

DSE Brokers Association (DBA) President Saiful Islam told TBS that the news of BNP Chairperson Khaleda Zia's critical health condition has intensified the existing political uncertainty.

He said the Bangladesh Bank's decision to wind up the NBFIs at such a sensitive time has added further pressure. "The announcement has created panic, as many fear a broader negative impact. Investors believe that general shareholders are the ones who will be hurt the most by such decisions."

BSEC Director and Spokesperson Abul Kalam told TBS that the stock market regulator had not been officially informed about the decision. "I would urge that if any regulator takes a price-sensitive decision involving a listed company, there must be proper disclosure so investors are informed," he said.

He added that out of the nine institutions targeted, eight are listed on the stock market, involving thousands of investors. "Before taking such a major decision, the stock regulator should be notified, and proper disclosure should be made in the interest of investors," he said.

Polls schedule could boost market

Market insiders further noted that expectations surrounding the upcoming national elections could eventually boost investor sentiment, particularly after the election schedule is announced. Political clarity encourages stronger market participation, which can stabilise and positively influence the market.

They also explained that after several consecutive weeks of price declines, the market has become significantly oversold. As a result, many fundamentally strong stocks are now trading at undervalued levels. In this situation, some cautious but opportunity-driven investors are taking fresh positions in anticipation of potential future gains.

Market observers added that the recent downturn was not driven solely by political uncertainty. The enforcement of new margin loan regulations forced many investors to sell their shares, which intensified the decline and added further pressure on overall market prices.

NBFI sector suffers largest decline

Among the top gainers, Khulna Printing rose 10%, followed by Zeal Bangla Sugar 9.93%, and Bangladesh Thai Aluminium, both up 9.80%. On the losing side, Fareast Life dropped 10%, followed by International Leasing 10%, and Fareast Finance 10%.

Besides, Simtex Industries, Khan Brothers PP Woven Bag, and Dominage Steel Building were the top traded stocks in the Dhaka stock exchange on Monday.

All major large-cap sectors posted negative performances. The NBFI sector suffered the largest decline of 2.36%, followed by Engineering 1.41%, Bank 0.99%, Pharmaceutical 0.99%, Fuel & Power 0.91%, Telecommunication 0.67%, and Food & Allied 0.52%.

Block trades contributed 2.0% of the total market turnover, indicating that a portion of the trading activity came from large-volume transactions.

The Chittagong Stock Exchange (CSE) also closed lower, with the CSCX rising 73 points to 8,537, and the CASPI index losing 124 points to close at 13,853, reflecting negative sentiment across both major bourses.

It is a hard time to be a stock investor, especially if your money is tied up in banks and non-bank financial institutions (NBFIs).

Sentiment had already been fragile after the merger of five banks wiped out an estimated Tk 4,500 crore in shareholder value, leaving many retail investors increasingly cautious. Now, with the regulator clearing the way for liquidating nine NBFIs, including eight listed ones, ordinary shareholders face potential losses of Tk 1,450 crore.

The combined impact sent alarm bells ringing across the capital market yesterday, with 83 percent of stocks on the Dhaka Stock Exchange (DSE) falling. NBFI shares saw a steeper drop, sliding 87 percent as panicked investors rushed to dump their holdings.

Bangladesh Bank named FAS Finance, Bangladesh Industrial Finance Company (BIFC), Premier Leasing, Fareast Finance, GSP Finance, Prime Finance, People's Leasing, and International Leasing among the institutions selected for liquidation.

Following the announcement, shares of International Leasing, Fareast Finance, GSP Finance, BIFC, FAS Finance and People's Leasing fell by at least 8 percent, while Prime Finance dropped 5 percent and Premier Leasing 3 percent.

RUSHED SHARE DUMPING

Rashed Ahmed, a retail investor, ordered his broker yesterday to sell shares of a relatively well-performing NBFI despite its history of steady dividends.

"With eight listed NBFIs set to be liquidated, the negative impact could spread across the stock market, especially in the NBFI sector," he told The Daily Star. "I need to safeguard my investment from further erosion."

Many others took similar action, creating a selling spree across brokerage houses in Motijheel.

A stockbroker, speaking on condition of anonymity, said investors were selling "out of fear that NBFI liquidations could trigger another wave of panic, similar to the turmoil caused by the five bank mergers earlier."

"Whenever the market starts to recover, fresh negative news pulls it back into the red," he added.

The DSEX, the benchmark index of the DSE, fell roughly 400 points in the two weeks leading up to mid-November, dropping below 5,000 points for the first time in months, after regulatory announcements that shareholders of the merged banks were unlikely to get anything from their stake.

Though the index briefly rebounded past 5,000 points last week, it tumbled again after the NBFI liquidation news, closing at 4,914 points yesterday.

NO RECOVERY FOR SHAREHOLDERS

Shareholders of the selected NBFIs are also unlikely to recover any value from their shares.

The underlying concern is the net asset value (NAV) of the affected NBFIs – the difference between a company's assets and liabilities. Most of the eight listed firms have deeply negative NAVs, meaning their debts far exceed their assets.

As per the existing laws and rules, when assets are sold to repay creditors, ordinary shareholders are likely to get little or nothing, as they sit at the bottom of the payout hierarchy.

Financial reports show seven of the eight listed NBFIs have an average NAV of negative Tk 95 per share. Only Prime Finance had a marginally positive NAV of Tk 5.31 per share in 2023.

For small investors, it is another chapter in a difficult period. Although Bangladesh Bank has already taken a decision to wind up the listed firms, trading of these stocks remains operational at the stock exchanges.

Shahjahan Mia, an investor, said, "I still don't know if shareholders of the NBFIs will get anything back with the liquidation or not."

"It is unfair to punish general shareholders for the wrongdoings of sponsors of the companies," he added.

He called for taking strict action against sponsors of the NBFIs who were involved in fund embezzlement. For the benefit of stock investors, he urged the government to give some support.

LOST CAUSES

According to BB data, the eight NBFIs accounted for 52 percent of the sector's Tk 25,089 crore in defaulted loans at the end of last year. Twelve institutions alone carried 73.5 percent of all bad loans in the sector.

"This situation had been building for years," Saiful Islam, president of the DSE Brokers Association of Bangladesh, told The Daily Star recently.

"We warned that a financial crisis was brewing because banks and NBFIs were being drained. Their toxic loans grew so large that they had nothing left to rebuild with. Now, with liquidation coming, small investors are being hit hardest," he added.

Islam said many investors were misled because financial statements did not reflect the true extent of the problems.

"Auditors and credit rating agencies must be held accountable. Regulators, too, cannot avoid responsibility," he added.

In January, the central bank classified 20 NBFIs as financially "red-category" – meaning they had dangerously high defaulted loans and weak capital positions – and asked them to justify why their licences should not be cancelled.

Nine failed to provide satisfactory answers and have been put on the initial liquidation list.

Bangladesh must accelerate export diversification, enhance competitiveness, and adopt forward-looking trade policies to address challenges following its upcoming graduation from the group of least developed countries (LDCs) to a developing nation, Commerce Adviser Sk Bashir Uddin said today.

"To navigate this transition successfully, we must hasten diversification, improve competitiveness, and adopt forward-looking trade policies," Bashir Uddin said while inaugurating the three-day Global Sourcing Expo 2025 Dhaka at the Bangladesh-China Friendship Exhibition Center in Purbachal, Dhaka.

The adviser emphasised that Bangladesh needs to diversify its export basket, strengthen supply-side capacity, and forge new partnerships with international buyers to remain competitive in a challenging global market.

He noted that while LDC graduation is a major milestone, it will gradually reduce the preferential market access and duty benefits the country currently enjoys.

Policymakers and industry leaders also stressed the urgency of export diversification and deeper engagement with global buyers to sustain trade growth amid shifting global dynamics.

At a seminar on the sidelines of the expo, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said improved port operations by foreign companies could enhance efficiency in port management.

He also urged the suspension of the amended labour law until a newly elected government takes office, citing that the current amendment is neither industry-friendly nor worker-friendly.

In another seminar, Inamul Haq Khan, senior vice-president of the Bangladesh Garment Manufacturers and Exporters Association, highlighted the need for easier access to green financing, brand support through knowledge sharing and technology transfer, targeted interventions from development partners for SMEs, and greater regional inclusion so that areas like North Bengal, Sylhet, and Chattogram can benefit alongside Dhaka-centric clusters.

Khan also called on the government to amplify the industry's success stories through Bangladesh's embassies and high commissions abroad, highlighting the country's achievements on the global stage.

Organised for the first time by the government, the expo aims to highlight Bangladesh's expanding export capabilities and attract new global buyers. Jointly arranged by the Export Promotion Bureau (EPB) and the Ministry of Commerce, the exhibition will continue until December 3.

The fair features products from eight key export sectors: readymade garments, leather and leather goods, jute and jute products, agricultural goods, plastics and kitchenware, home décor and furniture, pharmaceuticals, and ICT.

More than 100 firms, including multinational companies, wholesalers, and supply-chain representatives, are participating, according to a statement from the commerce ministry. Buyers and sourcing organisations from Afghanistan, China, Iran, Japan, Myanmar, Pakistan, Singapore, Sri Lanka, Thailand, the UAE, the US, and several other countries are attending business-to-business (B2B) meetings and negotiating potential contracts.

The three-day event also includes 10 thematic seminars, online and offline business-to-business (B2B) sessions, over 150 stalls, fashion shows, networking opportunities, and product demonstrations.

Lutfey Siddiqi, special envoy for international affairs to the Chief Adviser; Mohammad Hasan Arif, vice-chairman of EPB; Mahbubur Rahman, secretary to the commerce ministry; and Md Abdur Rahim Khan, administrator and additional secretary (export) of the Federation of Bangladesh Chambers of Commerce and Industry, also spoke at the event.

After two months, Bangladesh Bank has once again bought US dollars from commercial banks through auctions. The central bank resumed these purchases mainly because the dollar rate had been declining, and it wanted to prevent the rate from falling too far.

The central bank bought $54 million at Tk122.25 per dollar from commercial banks yesterday. With this, Bangladesh Bank's total purchases in the current fiscal year crossed $2 billion as of 30 November.

A treasury head at a private bank said Bangladesh Bank held the auction because the dollar rate had dropped to Tk122.17 on Thursday, signalling to the market that the rate should not fall below Tk122.25.

The last time the central bank bought dollars was on 6 October. It began purchasing dollars through auctions from commercial banks this July. When supply exceeds demand, the dollar price falls; when demand exceeds supply, the price rises.

Bankers have cited several reasons behind the decline in the dollar rate. First, government demand for large external payments has fallen, reducing payment pressure compared to two weeks ago. Second, there is no new business activity or investment in the country.

The slowdown means imports of capital machinery have also declined. Private-sector credit growth was 6.29% at the end of September, the lowest on record. In other words, businesses are not importing capital machinery even though banks have adequate dollars. Third, remittance inflow has increased towards the end of the month as salaries are paid abroad, raising supply at banks compared to demand.

Syed Mahbubur Rahman, MD and CEO of MTB, said, "Large government payments have already been made. There are no major payments ahead, which has eased pressure on the dollar. This is the main reason behind the rate declining. Earlier, the rate increased mainly because of large payments – the more the payments, the greater the pressure on the dollar."

Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said, "Business investment is stagnant, so demand for dollars among businesses is low. As a result, there is no longer the same need for dollars to buy capital machinery. Bangladesh Bank's strategy is to keep the dollar rate higher because a higher rate boosts remittance and export earnings. I believe this strategy is appropriate."

A treasury chief at a private bank said remittance inflow has increased towards the end of the month. This positive trend is likely to continue into December. For the first 10 days of December, dollar demand will remain relatively low, but pressure is expected to rise again in mid-December, which may push the rate up.

A senior Bangladesh Bank official said private banks handle commercial payments, while state-owned banks handle government payments. Although payment demand is currently low, it will rise again soon.

According to central bank data, remittance inflow reached about $2.69 billion as of 29 November, showing a positive trend in recent months.

On Saturday, Bangladesh Bank Governor Ahsan H Mansur also said that banks had adequate dollar supply. He said, "I have said before that to control inflation, the dollar market must be stabilised. The market is stable now – if anything, it is more stable than necessary."

A treasury chief at a state-owned bank said he bought remittance at Tk122.15 on Sunday. He added that remittance rates may rise further after the auction.

However, at private banks, the remittance rate is currently Tk122.30 to Tk122.40.

Stocks at the Dhaka bourse suffered a sharp decline on Sunday as growing political concerns prompted investors to step back, triggering broad-based sell-offs across the market.

The benchmark DSEX index lost 49 points to close at 4,978, snapping the recent recovery momentum and signalling renewed caution on the trading floor. The blue-chip DS30 index also plunged by 17 points to finish at 1,917, reflecting sustained pressure on major large-cap stocks.

Market participation, however, remained relatively buoyant, with turnover rising 12% to Tk492 crore compared to the previous session.

Despite the higher activity, sentiment remained distinctly bearish, as losers overwhelmingly outnumbered gainers. Out of the traded issues, 306 declined, only 57 advanced, and 28 remained unchanged. The day's intense selling spree wiped out around Tk7,000 crore from the market's capitalisation.

EBL Securities, in its daily market review, noted that the capital bourse began the week on a "dismal note" as cautious investors stayed on the sidelines while awaiting clearer signals regarding the evolving political situation.

Although the indices managed to stay marginally positive until mid-session, aided by brief bouts of buying interest, the sell-off intensified in the latter half of the day, dragging most scrips deep into the red, it added.

Sectoral performance painted a similarly downbeat picture. Engineering stocks accounted for the highest share of turnover at 12.6%, closely followed by textile at 12.6%, and fuel and power at 12%.

However, the majority of sectors posted negative returns, with non-bank financial institutions and mutual funds each dropping 2.4% and the IT sector losing 2%.

Only the jute and paper sectors managed to stay afloat, posting modest gains of 3.6% and 1.3% respectively.

Loss-making and speculative firms dominated the gainers' list, further underscoring the day's unusual trading pattern amid heightened volatility.

Zeal Bangla Sugar topped the chart with a 9.95% rise, followed by Khulna Printing at 9.75% and BD Thai Food at 9.43%. Regent Textile and Global Heavy Chemical also posted notable gains.

On the losers' end, Lub-rref Bangladesh plunged the most with an 18.89% decline, while Premier Leasing, Fareast Finance and Peoples Leasing each dropped 10%. Simtex Industries also registered a sharp fall of 9.97%.

The bearish trend was mirrored at the port city bourse as well. Both the Selective Categories Index (CSCX) and the All Share Price Index (CASPI) of the Chittagong Stock Exchange ended lower, falling by 32.7 points and 60.9 points respectively.

Bangladesh Bank has granted the final licence to Sammilito Islami Bank PLC, created through the merger of five struggling Islamic banks, making it the country's largest state-owned Shariah-based lender.

The central bank said the approval is part of a broader banking sector reform programme launched in September 2024 to restore governance, ensure accountability, and bring discipline back to the financial system.

Under the Bank Resolution Ordinance 2025, EXIM Bank PLC, First Security Islami Bank PLC, Global Islami Bank PLC, Social Islami Bank PLC, and Union Bank PLC were declared failed institutions and placed under the resolution. Administrators were appointed to each bank on November 5, 2025.

Earlier, on November 9 this year, Bangladesh Bank issued a letter of intent (LoI) and a no objection certificate for establishing Sammilito Islami Bank.

Following compliance with the LoI conditions, the proposed bank was registered with the Registrar of Joint Stock Companies and Firms.

Salvo Organic Industries Managing Director Salam Obaidul Karim is continuing to increase his stake in the company as part of an effort to meet the minimum shareholding requirement set by the Bangladesh Securities and Exchange Commission (BSEC), after the regulator rejected the firm's repeated attempts to raise capital through private placement.

On Sunday, Salam announced through the Dhaka Stock Exchange (DSE) that he plans to purchase an additional 4.40 lakh shares from the public market at the prevailing market price within the next 30 days.

This follows his earlier acquisition in November, when he bought 18.96 lakh shares – equivalent to 2.91% of the company's paid-up capital.

The move comes after Salvo Organic, formerly known as Salvo Chemicals, failed to meet the BSEC's mandatory requirement for sponsors and directors to jointly hold at least 30% of the company's shares, as stipulated in the May 2019 directive.

According to the auditors' report, the company's current sponsor-director holding stands at 25.18%, leaving a shortfall that the management has been attempting to address for over a year.

To comply with the rule, the company convened an Extraordinary General Meeting (EGM) on 18 July 2024, where shareholders approved a plan to raise Tk6.40 crore in paid-up capital through the issuance of 64 lakh ordinary shares at Tk16 each – including a Tk6 premium – to be allotted to existing sponsors and directors.

However, the BSEC rejected the proposal on 7 October 2024. When Salvo reapplied in December, the regulator again denied approval on 20 April this year.

The company had planned to use the proceeds to strengthen its working capital by Tk4.20 crore and finance imported machinery worth Tk2.20 crore, aiming to support continuous production and operational efficiency.

With the private placement route now closed, the responsibility has fallen on individual sponsors – primarily the managing director – to raise their collective holding to the required level through direct market purchases, according to the market analysts.

Salvo Organic is a prominent player in Bangladesh's bulk chemical industry, specialising in sulphuric acid and battery-grade water. The company says it has grown into one of the country's leading sulphuric acid producers.

In the financial year that ended 30 June 2025, Salvo paid a 2.5% cash dividend. Its earnings per share (EPS) fell sharply to Tk0.58 from Tk1.66 in FY24, reflecting a 65% decline.

The company's net asset value (NAV) per share rose slightly to Tk16.57 from Tk16.24 a year earlier, while its net operating cash flow per share (NOCFPS) improved to Tk5.68 from Tk5.43.

In the first quarter of FY26, the company posted an EPS of Tk0.14, marginally higher than Tk0.13 during the same period last year. Salvo Organic's share price closed 0.33% higher at Tk30 on Sunday.

Local garment exporters are expecting a strong rebound in shipments next year, despite a slowdown in exports to the US before the Christmas peak due to higher reciprocal tariffs.

The outgoing year has been marked by uncertainty caused by tariff changes and volatility in the global supply chain. Market conditions began stabilising after the US finalised tariff rates for individual countries in August.

The Trump administration imposed a 20 percent reciprocal tariff on Bangladeshi goods in August. Combined with the existing 16.15 percent Most Favoured Nation (MFN) duty, Bangladesh's exports to the US now face a total tariff of 36.15 percent.

Earlier in April, the US had proposed reciprocal tariffs for several countries and introduced a 10 percent baseline tariff for all imports.

During the negotiation period, US-based clothing retailers and brands stocked up on Bangladeshi garments between April and August to benefit from the lower 10 percent tariff.

Because of this early stocking, Bangladesh's garment exports declined in August, September, October, and November, particularly to the US market.

"When store inventories start to shrink after the Christmas sales in December, imports will begin to rise again from January through March," said Faruque Hassan, managing director of Giant Group, a garment exporter.

He added that exports may not rebound immediately but are expected to grow gradually from March. "Clothing sales in the US have also fallen short of earlier forecasts because prices went up following the higher reciprocal tariff," Hassan said.

Hassan also noted that export prices to the European Union (EU) are declining as major exporters — Bangladesh, India, China, Pakistan, and Vietnam — compete in the same market.

"Due to the higher tariff in the US market, most garment-exporting countries have shifted more of their focus to the EU," he said.

MARKET REVIVING AFTER TARIFF IMPACTS

Sharif Zahir, managing director of Ananta Group, echoed Hassan's views. "Our factories are full of work orders from retailers and brands up to June 2026, even though the outgoing year was only stable after the impacts of the reciprocal tariffs," he said.

Tapan Chowdhury, former president of the Bangladesh Textile Mills Association (BTMA), who also exports garment items, said, "Our company experienced a slowdown in exports because of the reciprocal tariffs. Retailers and brands delayed placing work orders, but now the market is reviving, and they are coming back."

He added that international buyers are closely monitoring Bangladesh's political situation. "The government should hold more interactions with businessmen so that business challenges can be resolved through discussions and by creating a business-friendly environment," Chowdhury, also managing director of Square Pharmaceuticals Ltd, said.

"It was not that healthy," said MA Jabbar, managing director of DBL Group, another garment exporter. "We were suffering from lower work orders. But good days are coming, and business is picking up after the US settled tariff rates with different countries."

Anwar-Ul-Alam Chowdhury (Parvez), former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said, "Christmas shipments were not that strong in August, September, October, and November.

"However, sales in the US market are expected to pick up during the Christmas season, and demand for Bangladeshi garments in the US should rise afterwards. Buyers are now closely monitoring the Bangladeshi market."

According to Export Promotion Bureau (EPB) data compiled by BGMEA, garment exports to the US grew only 5.14 percent to $2.58 billion during July-October. Apparel exports to the EU increased by 0.46 percent to $6.25 billion in the same period.