Following the recent conclusion of a trade agreement between India and the European Union, and the prospect of tariff reductions under a US-India bilateral trade deal, fresh concerns have emerged among Bangladeshi exporters. Tariffs on Indian products in the US market are being reduced to 18 percent, while Bangladeshi products continue to face an effective tariff of 20 percent. This has created a clear price gap between two major South Asian exporters. Experts warn that if this disparity persists, Bangladesh’s ready-made garment exports to the US market, despite their historic edge, could be seriously affected.

Bangladeshi exporters are already struggling to compete on price with US buyers. As a result, orders for basic T-shirts, knitwear and casual apparel are increasingly at risk. Sector insiders say export growth declined during the July-December period of 2025, with only marginal improvement in January, while competing countries moved ahead by leveraging global trade advantages. This has created a new crisis for the export sector.

Analysts also caution that if the EU market no longer offers GSP facilities after 2026, Bangladesh could face a major shock in its largest export destination. Against this backdrop, resolving internal challenges, strengthening diplomatic engagement and reinforcing trade strategies have become critically important. Without stronger policy support to ensure exporter stability, the export sector will face further pressure, with direct consequences for the national economy.

The impact is most visible in the ready-made garment sector. Exporters note that even a 1 to 2 percent tariff difference can determine where orders are placed. With lower tariffs, Indian exporters can offer more competitive prices. They also benefit from easier access to raw materials and faster delivery, supported by more efficient ports and supply chains. As a result, Bangladesh’s T-shirt, knitwear and casual apparel orders face serious threat.

Garment sector leaders say tariff differentiation has left Bangladeshi factories with few options. To survive, many may be forced to cut prices to retain buyers. But lower prices will squeeze already thin margins, worsening conditions for factories burdened by high production costs, gas and electricity shortages, and high-interest bank loans.

Between 2021 and 2026, India concluded nine major trade agreements, significantly strengthening its global export position. Bangladesh, by contrast, has only one effective trade agreement with Bhutan, while another with Japan was signed this week.

India’s success is not sudden. It reflects a long-term strategy and a comprehensive textile and apparel ecosystem, with strong backward and forward linkages, infrastructure investment, skills development and higher value addition. Sector stakeholders say that Bangladesh should not remain stuck in despair, but focus on two priorities: identifying where it has fallen behind, and determining how it can stay competitive through long-term planning. This calls for targeted FTA and CEPA strategies, greater value addition, improved logistics and port efficiency, policy stability and investment in skilled human resources. With these steps, the export sector can still be revitalised.

With India’s countervailing tariff set at 18 percent, Bangladesh faces renewed competitive pressure. The current structure is clear: Indian exports face a 15 percent customs duty plus an 18 percent countervailing tariff, while Bangladeshi exports face a 15 percent customs duty plus a 20 percent countervailing tariff. In total, Bangladeshi exporters pay 35 percent in tariffs. This erodes competitiveness as buyers push for lower prices. At the same time, private sector wage pressures are rising amid expectations of public sector salary increases.

In this situation, the government must urgently intensify diplomatic efforts and strengthen policy support to keep the export sector competitive. With a national election approaching, major political parties should also be prepared to debate and negotiate what best serves the country’s economic interests.

The interim government succeeded in preventing a deeper economic and geopolitical slide during a highly volatile period, but failed to translate that stability into meaningful institutional reform, transparency, and inclusive governance, said speakers at a policy dialogue on Saturday.

Economic analyst Mamun Rashid argued that although the interim government inherited an economy on the brink, particularly after the July 2024 uprising, its most visible achievement was halting further deterioration rather than delivering a decisive turnaround.

“The fall was stopped, not reversed,” said former banker Mamun Rashid at a virtual discussion titled “Interim Balance Sheet”, organised by the Power and Participation Research Centre (PPRC).

The economy in early 2024 was “going nowhere”, with macroeconomic indicators under severe stress. The period following the political transition marked a shift from decline to stabilisation, particularly in foreign exchange reserves, remittance inflows, and banking discipline.

Reforms in the banking sector, such as reconstituting bank boards and initiating forensic audits, particularly in troubled Islamic banks, were the most visible actions of the interim government.

Anwar-Ul-Alam Chowdhury (Parvez), president of the Bangladesh Chamber of Industries, alleged that advisers relied excessively on bureaucrats, often without understanding the real-world impact of policy decisions
Still, these measures largely reflected “business-as-usual” governance rather than a deeper transformation.

“We did not see the kind of modernisation in economic management that many expected after the movement,” he said, adding that conflicts of interest, bureaucratic dominance, and informal influence networks remained largely intact.

Private sector credit growth had slowed to 6.1 percent, while implementation of the annual development programme stood at just 17.28 percent in six months, said Anwar-Ul-Alam Chowdhury (Parvez), president of the Bangladesh Chamber of Industries.

He alleged that advisers relied excessively on bureaucrats, often without understanding the real-world impact of policy decisions.

“They thought they knew everything,” he said, adding that access to decision-makers was limited and engagement with businesses remained weak.

Public expectations after August 2024 were that social polarisation would decline and that a culture of open debate would emerge, said Rounaq Jahan, a political scientist.

“That did not happen,” she said.

While people are now speaking more openly, they are increasingly being labelled or targeted, creating a climate of fear.

She cited attacks on cultural and media institutions such as Prothom Alo, The Daily Star, Udichi, and Chhayanaut as examples of shrinking civic safety.

Jahan criticised the interim government for attempting too many ambitious reforms without sufficient consensus, particularly constitutional changes, while neglecting electoral preparation.

“Given the history of controversial elections, ensuring a credible next election should have been the priority,” she said.

The interim period coincided with rising regional and global instability, including uncertainties over water sharing with India and trade disruptions under the Trump administration in the US, said M Humayun Kabir, president of the Bangladesh Enterprise Institute.

While political parties mentioned geopolitics in their manifestos, concrete strategies were lacking.

Kabir welcomed Bangladesh’s economic partnership agreement with Japan, calling it a “bold step”, but criticised the interim government for failing to build strong institutional coordination across the foreign affairs and commerce ministries.

The interim government managed two critical challenges: halting macroeconomic decline and navigating a sensitive geopolitical environment, said Hossain Zillur Rahman, executive chairman of PPRC, who moderated the dialogue.

However, he warned that stability without transparency and social accountability could not deliver lasting change.

“The bureaucracy has further strengthened its grip on society, reflecting a continuation of colonial mindsets,” he said.

Rahman stressed that elections alone would not resolve systemic problems but could serve as a catalyst for rebuilding political dialogue and trust between parties and citizens.

Stocks opened the week in negative territory as investors opted to book profits following recent gains, pushing the benchmark index of the Dhaka Stock Exchange (DSE) slightly lower amid a cautious trading mood.

The DSEX, the broad index of the prime bourse, edged down by 0.10% to close at 5,229 points, while the blue-chip DS30 index slipped 0.17% to finish at 1,998 points today (8 February).

Market breadth reflected a lack of clear direction, with 162 issues advancing, an equal number declining, and 69 remaining unchanged.

Turnover dropped sharply by 19% from the previous session to Tk478 crore, indicating reduced participation as investors stayed on the sidelines in the absence of fresh catalysts. Market participants appeared reluctant to take aggressive positions after the recent upward trend, choosing instead to reassess valuations.

EBL Securities, in its daily market review, said the benchmark index started the week on a flat note as investors took advantage of the recent price appreciation to realise profits, triggering sustained selling pressure in several large-cap and blue-chip stocks. It noted that investors remained watchful over further political clarity ahead of the upcoming national election, which continued to influence short-term sentiment.

Sector-wise, pharmaceutical stocks dominated turnover, accounting for 14.7% of total trading value, followed closely by textile and banking sectors, each contributing 13.6%. Asiatic Laboratories, Simtex Industries, Kay and Que, Islami Bank and Monno Fabrics emerged as the most actively traded stocks of the day.

Most sectors ended the session in the red, with engineering and jute stocks posting the steepest declines of 1% each, while the tannery sector lost 0.7%. The negative sectoral performance underscored the impact of profit-taking across a wide range of scrips.

Interestingly, the top gainers' list was dominated by risky and loss-making financial institutions, as speculative interest pushed up prices of Fareast Finance, International Leasing, Peoples Leasing and FAS Finance, each posting double-digit gains. Associated Oxygen also featured among the gainers.

On the losing side, DBH First Mutual Fund suffered the sharpest decline, followed by Meghna Condensed Milk, Meghna PET, Reliance Insurance Mutual Fund and Prime Bank First ICB AMCL Mutual Fund, as investors offloaded positions in these issues.

The Chittagong Stock Exchange also mirrored the weak sentiment. Its selective categories index CSCX fell by 43 points to 9,078, while the all-share index CASPI dropped 48 points to close at 14,683. Turnover on the port city bourse stood at Tk6.33 crore.

The Bangladesh Competition Commission (BCC) has fined S Alam Super Edible Oil Ltd Tk 42.84 crore for artificially inflating cooking oil prices by restricting supply and colluding with dealers and rivals to manipulate the market in 2022.

Following demands from businesspeople, the government raised edible oil prices by Tk 38 per litre on May 5, 2022. Yet supply remained tight, leaving consumers struggling.

The BCC later launched an investigation into the import, production and pricing of cooking oil during that period, and filed charges against the company later that month.

In its final order, issued last Tuesday, the commission found that S Alam Super Edible Oil Company had violated the Competition Act of 2012 by restricting output and conspiring with distributors and other firms to control the market, reads a press statement.

It violated Section 15’s sub-section 1 and sub-section 2’s clauses a(i) and b of the law, which prohibit agreements that harm competition or create monopolies and oligopolies, particularly those that fix abnormal prices or limit production and supply.

Afroza Bilkis, a member of the BCC, told The Daily Star that S Alam Super Edible Oil Ltd must pay the fine within 30 days of receiving the full judgment.

If the company disagrees with the ruling, it can file a review with the commission or appeal to the Secretary of the ministry concerned within the same timeframe.

Bilkis added that failure to pay, review, or appeal would be considered a violation of the order, allowing the commission to initiate legal action, including criminal proceedings, against the company.

The company is owned by Mohammed Saiful Alam, who is accused of laundering thousands of crores of taka in loans from banks under his control during the 15 years of the Awami League-led regime.

The Daily Star attempted to contact S Alam Group’s Kazi Salahuddin Ahmed, senior general manager, and Subrata Kumar Bhowmick, executive director for finance, for comments on the matter. However, they did not respond by the time of filing this report, as of 6:30 pm.

Just seven new petrol-powered cars were sold in Norway last month, according to official data, underlining the country's rapid shift away from fossil-fuel vehicles, reports The Guardian.

Figures from the Norwegian Road Traffic Information Council (OFV) show that registrations of new fossil-fuel cars fell to a record low in January.

Alongside the seven petrol cars, only 29 hybrids and 98 diesel vehicles were registered, while more than 2,000 battery electric vehicles (BEVs) were sold.

Overall car sales were subdued, largely because many buyers rushed to make purchases in December to avoid tax increases that took effect in January, according to The Guardian. Even so, the collapse in petrol car sales highlights how close Norway is to phasing out internal combustion engines that contribute to climate change and extreme weather.

"The January figures do not mean demand has disappeared, but reflect the extraordinary surge in purchases before the new year," said OFV director Geir Inge Stokke. "We expect registrations to rise again as the market normalises."

BEVs accounted for 95.9% of all new-car sales in Norway last year. Analysts attribute the country's electric vehicle boom to high carbon taxes, strong incentives for EV buyers and the absence of a powerful lobby resisting the transition.

Christina Bu, secretary general of the Norwegian Electric Vehicle Association, said the early 2025 figures should not be read as the end of the journey.

The transition is also becoming evident in Norway's used-car market. Sales of secondhand electric vehicles rose 22.7% year on year in January, with EVs now accounting for one in four used cars sold, OFV data shows.

"Electrification is clearly gaining ground in the used-car market as well," Stokke said. "That makes electric cars accessible to far more buyers than before."

While Norway remains the global leader in EV adoption, other countries are catching up. Denmark has seen BEV market share jump from 2% to 68% over the past decade, while electric vehicles now account for more than a third of new-car sales in the Netherlands, Finland, Belgium and Sweden.

After months of uncertainty, optimism has returned to apparel manufacturers and exporters in Tiruppur, India's largest textile hub, following an interim trade agreement between the United States and India.

The textile and apparel sector has emerged as one of the biggest beneficiaries of the deal, under which US tariffs on Indian garments have been reduced from 50% to 18%.

Industry leaders said the move would provide immediate relief to exporters who had been operating at losses while fulfilling existing orders.

India exports apparel worth about $10.5 billion annually to the US, its largest textile market. Exporters said the tariff cut would restore competitiveness and improve profitability.

Major apparel exporters noted that the agreement would ease pressure from discounted deals. Pearl Global Industries Ltd, which supplies brands such as GAP Inc and Ralph Lauren Corp, said the removal of penalty tariffs would boost margins.

"With the penalty now eliminated, discount pressure will reduce, directly boosting profitability from February onwards," said P Banerjee, managing director of Pearl Global.

Textile exporters in Tiruppur welcomed the India-US framework trade agreement, saying it would help the sector compete more effectively with Bangladesh, Vietnam and China.

Industry representatives said garment orders worth around Rs4,000 crore had been stuck due to tariff uncertainty and were expected to be cleared following the agreement, which has taken immediate effect.

Tiruppur Exporters' Association President KM Subramanian described the joint statement by India and the US as "significant" and said exports from Tiruppur could double over the next five years. Currently, the hub's garment exports are valued at around Rs15,000 crore, according to him.

Subramanian, who is also founder-chairman of KM Knitwear Pvt Ltd, said the deal could generate substantial employment.

"About one million people are currently employed in the industry. I am hopeful that another 500,000 jobs could be created over the next three to five years if the momentum continues," he said, adding that the immediate impact would be visible within three to four months.

South Indian Mills Association President Durai Palanisamy said the deal with the US, along with improved trade ties with the European Union, would increase demand for Indian textile exports due to enhanced global competitiveness.

M Rathinasam, founder of Tiruppur-based Starlight Exporters, said earlier many orders had shifted to Bangladesh and other countries, but expressed hope that more orders would now return to India and that work on pending orders would resume soon.

A Sakthivel, chairman of the Apparel Export Promotion Council, said the agreement would also help address non-tariff barriers and reduce compliance burdens for exporters.

The Dhaka Stock Exchange (DSE) has approved the transfer of 30 lakh shares of Genex Infosys PLC held by its director Nilofar Imam to City Bank PLC, according to a disclosure issued by the bourse.

The transfer will be executed outside the trading system of the exchange and is scheduled to be completed within the next 30 working days, effective from 3 February.

The share transfer will take place under Regulation 47(1)(d) of the Dhaka Stock Exchange (Listing) Regulations, 2015, which allows certain transactions to be conducted outside the trading platform. The provision permits off-market transfers in specific circumstances, including cases related to confiscation or loan default, subject to compliance with applicable laws and regulatory approval.

Genex Infosys' share price edged down slightly following the announcement. Today, the company's shares closed 0.38% lower at Tk26.20 on the DSE.

This is not the first instance of sponsor-level share transfers involving Genex Infosys in recent weeks. Earlier, on 18 January, another director of the company, Chowdhury Fazle Imam, transferred 8.07 lakh shares, while a corporate director Oracle Services Limited transferred 9.92 lakh shares to Dhaka Bank, also under the same regulatory provision.

Meanwhile, Genex Infosys' financial performance showed mixed trends in the first half of the ongoing fiscal year. For the July–December period of FY26, the company's consolidated revenue declined by 6% year-on-year to Tk96.96 crore.

However, its consolidated net profit rose by 16% to Tk17.59 crore, supported by improved cost management and operational efficiency. As a result, consolidated earnings per share stood at Tk1.46 at the end of the first half of the fiscal year.

According to the latest shareholding structure, sponsors and directors collectively hold 30.05% of Genex Infosys' shares, while institutional investors own 18.71%. Foreign investors account for 0.09%, and the remaining 51.15% shares are held by general public investors.

Earlier, the company recommended a 1% cash dividend for the fiscal year 2024–25, payable only to general shareholders, excluding sponsors and directors.

Overall inflation in Bangladesh rose to 8.58 percent in January, marking the third consecutive monthly increase, as food prices continued to accelerate ahead of Ramadan, according to the Bangladesh Bureau of Statistics (BBS).

Food inflation climbed to 8.29 percent last month, rising nearly 0.6 percentage points from 7.71 percent in December, intensifying pressure on household budgets as families prepare for the holy month, when demand for essential commodities typically increases. Food inflation stood at 7. 36 percent in November.

The surge in food prices comes at a particularly challenging time for consumers, with Ramadan expected to begin in less than two weeks.

Non-food inflation, however, showed some easing, falling to 8.81 percent in January from 9.13 percent a month earlier, reflecting lower price pressures in areas including clothing, transport, housing and other services.

Overall inflation has followed an upward trajectory as well in recent months, increasing from 8.17 percent in October to 8.29 percent in November, and 8.49 percent in December.

China’s official gold reserves rose in January despite an increase in gold prices, extending a 15th consecutive month of buying streak, as the country continued to diversify and optimize its international reserves, official data showed on Saturday.

Gold reserves stood at 74.19 million ounces at the end of January, up 40,000 ounces from a month earlier, the State Administration of Foreign Exchange said on Saturday.

The latest gain followed a cumulative net increase of 860,000 ounces in 2025, after the central bank resumed gold buying in November 2024.

Wang Qing, chief macroeconomic analyst at Orient Golden Credit Rating, said the continued, measured accumulation amid record-high global gold prices signals an effort to improve the composition of China’s official reserves.

By the end of 2025, gold accounted for about 9.7 percent of China’s official reserves — still below the global average of around 15 percent, Wang said, adding that short-term gold price volatility is unlikely to materially affect China’s central bank’s overall trend of boosting gold reserves.

The World Gold Council said in a recent report that while the central bank may have tactically adjusted the pace of gold purchases as prices surged, China’s continued buying reflects a strategic push toward greater diversification of its expanding international reserves.

With the expansion of its fleet, Bangladesh Shipping Corporation (BSC), a state-owned ocean-going vessel management authority, witnessed a year-on-year 21% jumps in revenue, and 7% in profit in the second quarter (Q2) of the current fiscal year.

The corporation's board approved its quarterly and half-yearly financial statements for the July-December period today (8 February).

According to its price-sensitive information, in Q2, Shipping Corp's revenue surged to Tk176.91 crore while its profit grew to Tk57.81 crore with an earnings per share (EPS) of Tk3.79. It, in the first quarter of the fiscal year, witnessed a slump by 13% in its profit as its income tax expenses surged significantly.

Regarding the growth in its financials, the corporation said its revenue for the second quarter of 2025-26 increased due to the increase in freight rate in the international shipping sector.

In this context, BSC's net earnings per share increased compared to the previous year, it said.

In a strategic move to grow its presence in the shipping sector and boost government revenue income, the corporation, for the first time, purchased two new ocean-going vessels entirely with its own funds, investing approximately Tk900 crore.

The two China-made ships were purchased from an American company named Helenic Dry Bulk LLC at $77 million last year through an international tender

Of these, one vessel, Banglar Progoti, began its commercial operations in October last year, and the revenue generated from it was reflected in the half-yearly financial. The second, Banglar Nabojatra, ship joined its fleet in early February as the corporation received it from its supplier on 29 January.

BSC Managing Director Commodore Mahmudul Malek told the Business Standard, "Revenue and profit grew due to starting commercial operation of new ships at the fleet of the corporation as well as increasing the chartering fares."

Profit dips 5.42% in H1 as FRDs encashment

Despite growth in profit in Q2, Shipping Corp's profit in the first half declined by 5.42% but its revenue continued to grow by 11%, its financial statement showed.

During the July to December period, its profit grew to Tk136.23 crore with an EPS of Tk8.93 and its revenue grew to Tk330 crore. At the same time of the previous fiscal year, its revenue in H1 was Tk196.8 crore and profit Tk144.04 crore.

When asked about the decline in H1 profit, Commodore Mahmudul Malek told TBS that year-on-year profit in the half-year dipped mainly due to the encashment of FDRs to acquire new ships. Both vessels have joined the fleet and are generating revenue.

"We previously earned interest income from FDRs, but we encashed them to invest Tk900 crore in acquiring ships. As a result, interest income declined, which reduced overall profit," he said.

He expressed hope that the company's profitability will increase in the coming quarters as the new ships continue operating in the fleet.

Earlier, in FY25, the corporation reported its highest-ever net profit since its inception in 1972 in its 54-year history, with a profit of Tk306.56 crore – up 23% year-on-year – and revenue of Tk798.28 crore, up 33.39%.

Seeing growth opportunities in the global shipping industry, it decided to expand its fleet by acquiring one new ship per year until 2030 using its own funds, supported by record profits and a strengthened financial base.

Historically, the corporation acquired a total of 44 ships; now it owns seven ships in its fleet, with the addition of two new ships. Of the six ships, five were acquired in 2018 and 2019 from China under government-to-government contracts for Tk1,500 crore.

One ship, Banglar Samriddhi, was hit by a rocket while anchored in the Alvia port channel of Ukraine on 2 March 2022 during the Russia-Ukraine war. After getting an insurance claim, the corporation abandoned the ship.

India's Prime Minister Narendra Modi and his Malaysian counterpart Anwar Ibrahim renewed pledges on Sunday to bolster trade and explore potential collaborations in semiconductors, defence and other fields.

Modi is on a two-day visit to the Southeast Asian nation, his first since the two countries elevated ties to a comprehensive strategic partnership in August 2024.

Anwar said the partnership included deep collaborations in multiple fields, including trade and investments, food security, defence, healthcare and tourism.

"It's really comprehensive, and we believe that we can advance this and execute in a speedy manner with the commitment of our both governments," he told a press conference after hosting Modi at his official residence in the administrative capital Putrajaya.

Following their meeting, Anwar and Modi also witnessed the exchange of 11 cooperation agreements, including on semiconductors, disaster management and peacekeeping.

Anwar said India and Malaysia would continue efforts to promote the use of local-currency settlement for cross-border activities and expressed hope that bilateral trade would surpass last year's $18.6 billion.

Malaysia will also support India's efforts to open a consulate in Malaysia's Sabah state on Borneo island, Anwar said.

US President Donald Trump yesterday (6 February) signed an executive order threatening tariffs on Iran's trade partners, after he pledged a further round of talks with Tehran next week.

The order, effective from Saturday, called for a fresh "imposition of tariffs" on countries still doing business with Iran.

It comes amid heightened tensions between Washington and Tehran, with an American naval group led by an aircraft carrier in Middle Eastern waters and indirect talks held on Tehran's nuclear program in Oman on Friday.

The levies "may be imposed on goods imported into the United States that are products of any country that directly or indirectly purchases, imports, or otherwise acquires any goods or services from Iran", the order said.

Trump issued a threat of 25% tariffs on any country trading with Iran last month.

This order establishes a process for his administration to impose tariffs on goods from those countries.

The rate is to be determined by Secretary of State Marco Rubio, although the order specifies that it could be "for example" 25 percent, the level first mentioned by the US president in mid-January.

Tariffs would affect trade with a number of countries including Russia, Germany, Turkey and the United Arab Emirates.

More than a quarter of Iran's trade is with China, with $18 billion in imports and $14.5 billion in exports in 2024, according to World Trade Organization data.

The talks on Friday in Muscat, mediated by Oman, were the first between the two foes since the United States joined Israel's war with Iran in June with strikes on nuclear sites.

"We likewise had very good talks on Iran," Trump told reporters on board Air Force One en route to his Mar-a-Lago resort in Florida, adding, "we're going to meet again early next week."

Diplomatic relations between Iran and the US broke down with the 1979 Islamic Revolution that brought the current government into power after hostages were taken at the US embassy in Tehran for 444 days.

Direct engagement has been rare in the decades since.

Iran remains under an internet blackout amid a harsh government crackdown on economic protests that began in December across the country.

The US-based Human Rights Activists News Agency (HRANA) said Friday it has confirmed 6,505 protesters were killed, as well as 214 members of the security forces and 61 bystanders.

RAK Ceramics (Bangladesh) Limited has reported a loss of Tk39.59 crore for 2025, even as its revenue grew by 10.56%, mainly due to higher manufacturing costs, prolonged disruption in gas supply until June, and rising finance expenses.

According to its price-sensitive information (PSI) filed with the Dhaka Stock Exchange (DSE), the multinational ceramic manufacturer's sales rose to Tk737.33 crore in 2025 from the previous year, driven largely by increased production following uninterrupted LNG supply from July onward, which helped boost market sales.

Despite the revenue growth, the company's gross profit margin declined sharply to 13.19% from 17.19% a year earlier.

RAK Ceramics attributed the margin erosion to increased throughput costs, unabsorbed fixed costs incurred during the gas supply disruption up to June 2025, higher finance expenses arising from additional working capital borrowings, and increased provisions and write-offs of aged inventory.

With the latest loss, the company has posted back-to-back losses for the second consecutive year. In 2024, RAK Ceramics incurred a loss of Tk2.73 crore, although it also paid a 10% cash dividend that year.

Despite the widening losses, the board of directors has unanimously recommended a 10% cash dividend for general shareholders for 2025, amounting to Tk11.95 crore.

According to DSE data, sponsor-directors hold a majority 72.08% stake in the company and will not be entitled to the recommended dividend. The remaining 27.92% shares held by institutional investors, foreign investors, and general shareholders will receive the dividend payout.

The company also reported improvements in its operating performance, citing better trade receivable collections supported by a strengthened credit control framework, as well as successful renegotiation and extension of payment terms with vendors.

As a result, net operating cash flow per share rose significantly to Tk1 at the end of 2025, from Tk0.49 a year earlier.

RAK Ceramics has scheduled its annual general meeting (AGM) for 31 March through a digital platform. The record date for determining dividend entitlement has been set for 25 February.

Major business associations have appealed to Chief Adviser Muhammad Yunus for urgent personal intervention to defuse the escalating crisis at Chattogram Port, warning that an indefinite strike planned from tomorrow could trigger severe economic fallout just four days before the national election.

In an open letter dated today (7 February), the leaders of the Bangladesh Employers' Federation (BEF), Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) said continued disruption at the country's main seaport would pose a serious threat to exports, essential commodity supplies and overall economic stability.

The letter was signed by BEF President Fazle Karim Ehsan, BGMEA Acting President Selim Rahman, BKMEA President Mohammad Hatem and BTMA President Showkat Aziz Russell.

Describing Chattogram Port as the "lifeline of the national economy," the business leaders noted that it handles around 99% of the country's container traffic and 78% of seaborne trade. Any prolonged shutdown, they warned, could cause irreparable damage to key export sectors, particularly ready-made garments, while creating artificial shortages of essential goods ahead of Ramadan.

They also cautioned that vessel congestion and cargo delays would result in massive demurrage payments, putting additional pressure on the country's foreign exchange reserves.

While commending the interim government's reform initiatives and preparations for what they described as a free, fair and neutral election under Yunus's leadership, the signatories said they were deeply concerned by the "deep impasse" at the port.

The situation, they said, has been aggravated by the announcement of continuous strikes and shutdowns at the port terminals and outer anchorage from 8 February by the Chattogram Bandar Rokkha Sangram Parishad, a platform of port workers and employees opposing the proposed lease of the New Mooring Container Terminal (NCT) to UAE-based DP World.

According to the letter, seven consecutive days of dialogue and coordination meetings involving various stakeholders have failed to produce a breakthrough. The business leaders pointed to the controversial NCT lease plan as the core trigger of the unrest, saying the situation has become more volatile due to legal actions and investigations initiated against protesting workers.

"At this critical juncture, four days before the national election, any disruption to the country's supply system and economic activities is undesirable for all of us," the letter said, urging the chief adviser to take immediate steps to promote mutual understanding among workers, port authorities and other stakeholders.

The appeal comes as port workers prepare to resume an indefinite strike after a brief 48-hour suspension following talks with Shipping Adviser Brigadier General (retd) M Sakhawat Hossain.

The protest movement began in late January over the government's plan to hand over the NCT to DP World. A six-day work abstention earlier last week brought port operations to a standstill, leaving thousands of containers stuck at yards and dozens of vessels waiting at outer anchorage, with losses running into billions of taka.

Although the strike was temporarily paused after negotiations with the shipping adviser, labour leaders warned that the suspension was conditional. They accuse the port authority of acting in bad faith by transferring protesting employees and seeking anti-corruption probes and travel bans against labour leaders.

Protesters are demanding the cancellation of the NCT lease deal, removal of the port chairman over alleged corruption, withdrawal of cases filed against workers and assurances that no further punitive measures will be taken.

Trade bodies, particularly in the export sector, have repeatedly warned that renewed disruptions could lead to order cancellations, shipment delays, price hikes and potential job losses. With Ramadan approaching, business leaders fear supply chain instability could also push up prices of essential commodities.

Port authorities, on the other hand, have accused the strikers of disrupting national trade and have taken a series of administrative and legal steps, further hardening positions on both sides. Operations at the port remain fragile during the current pause, with stakeholders bracing for fresh disruptions if the strike resumes as announced.

With the election scheduled for 12 February and economic sensitivities running high, the business community's appeal underscores growing concern that failure to resolve the standoff quickly could amplify economic pressures and spill over into the broader political and social landscape.

The benchmark index of the Dhaka Stock Exchange continued its upward trend last week, supported by broad investor participation and sustained buying in undervalued blue-chip stocks. Improving sentiment around the upcoming national election encouraged selective buying across key sectors.

The market opened the week strongly, maintaining positive momentum for three consecutive sessions. Although some profit-taking appeared in the final session, buyers largely dominated, pushing the market higher by week's end. The DSEX rose 80.4 points, or 1.6%, to close at 5,234 points. Average daily turnover increased 11.2% to Tk644 crore, reflecting heightened investor activity.

Banking stocks led trading, accounting for 18.6% of total turnover, followed by pharmaceuticals at 14.8% and textiles at 9.7%. Engineering shares posted the highest weekly gains, climbing 5.7% as investors picked up stocks that were previously oversold. The banking sector added 3.8%, while mutual funds rose 3.4% on renewed buying interest.

Not all sectors fared well. General insurance fell 3.9%, life insurance dropped 2%, and telecom slid 1.5% amid profit-taking. Non-bank financial institutions saw sharp price swings, with International Leasing, Premier Leasing, FAS Finance, Peoples Leasing, and GSP Finance among the top gainers. On the downside, DBH First Mutual Fund led losses, along with Asia Pacific Insurance, Sonar Bangla Insurance, Rupali Life Insurance, and Rahim Textile.

BRAC Bank, Islami Bank, Asiatic Laboratories, Dominage Steel, and Simtex Industries were the most actively traded stocks, showing sustained interest in large-cap, fundamentally strong companies. Key contributors to the index's rise included Islami Bank, Walton, Al-Arafah Islami Bank, BRAC Bank, and Renata.

Analysts said that improving political clarity, steady participation from both institutional and retail investors, and selective accumulation in blue-chip stocks supported the market's gains. While short-term volatility from profit-taking may continue, the overall trend appears constructive as long as macroeconomic and political conditions remain stable.

Bangladesh Bank has dissolved the board of directors of Uttara Finance and Investment Limited and reconstituted it with five new directors, citing governance and oversight concerns.

The decision was taken under the Financial Company Act, 2023, as part of the central bank's ongoing efforts to strengthen corporate governance in the non-bank financial institution (NBFI) sector, according to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (5 February).

As per the disclosure, Mukhter Hossain has been appointed chairman and independent director of the newly formed board. The other independent directors are Shafiul Azam, Niamul Kabir and Rafiqul Islam, while Mahbub Alam has been appointed as a director.

Following the announcement, shares of Uttara Finance rose 2.40% to close at Tk12.80 on the Dhaka bourse.

This is not the first time the central bank has intervened in the institution's management. In 2022, Bangladesh Bank dissolved the company's board and appointed independent directors amid allegations of governance failures and financial irregularities.

The latest move follows a series of investigations initiated after Bangladesh Bank received information in 2019 regarding widespread violations of rules and serious financial misconduct at Uttara Finance. The allegations included irregular transactions amounting to at least Tk3,440 crore, misuse of company funds for personal purposes by directors, and withdrawals made under the guise of advances. The then managing director and several board members were reportedly involved.

Subsequently, the central bank scrutinised the company's audited financial statements for 2019 following multiple complaints and issued a number of corrective directives in 2021 after a prolonged investigation. Further evidence of irregularities later surfaced through a special audit conducted by external auditor Rahman Rahman Haque.

According to audited financial statements disclosed later, Uttara Finance incurred a net interest loss of Tk61.17 crore, an operating loss of Tk108.31 crore, and a net loss after tax of Tk435.54 crore in 2020. The loss per share stood at Tk33.13, reflecting a sharp deterioration in profitability.

The auditor's report also highlighted a capital shortfall of Tk711.55 crore as of December 2020, underscoring the depth of the financial distress that prompted continued regulatory intervention.

India's textile sector is set to gain advantage over competitors such as Bangladesh, Pakistan, China, and Vietnam under the recently announced bilateral trade deal with the United States, the Indian Ministry of Textiles said today (7 February).

Under the interim framework, the US will reduce reciprocal tariffs on all Indian textile products, including apparel and made-ups, to 18%. This not only removes the disadvantage Indian exporters previously faced but positions them ahead of competitors, whose reciprocal tariffs remain higher: Bangladesh (20%), China (30%), Pakistan (19%), and Vietnam (20%), the ministry said.

"This agreement is likely to reshape market dynamics, as major buyers are expected to reconsider their sourcing strategies in light of the tariff reduction," the ministry added.

Trump announces US-India trade deal, lowers tariffs to 18%

It stated that the deal is also expected to enhance cost competitiveness for Indian manufacturers and allow diversification of risks by enabling sourcing of textile intermediates from the US.

This, in turn, would support value-added textile production, expand India's manufacturing base, and boost exports, the ministry noted.

The ministry highlighted that the interim agreement would generate additional employment and attract investment from US entities, describing the framework as "a major catalyst" for strengthening textile trade relations between the two countries.

For Indian textile exports, the agreement opens access to the $118 billion US market for textiles, apparel, and made-ups. The US already accounts for around $10.5 billion of India's textile exports, comprising approximately 70% apparel and 15% made-ups.

The ministry said the deal is expected to play a key role in India reaching its $100 billion export target by 2030, with the US projected to contribute over one-fifth of this target, providing crucial momentum for the sector.

Indian Commerce Minister Piyush Goyal also highlighted the broader benefits of the deal.

Speaking to reporters, he said, "The agreement provides India with a competitive advantage over neighbouring countries and will provide a lot of help to our exporters."

Goyal noted that India's exports worth about $44 billion to the US will enter the American market at zero reciprocal tariffs under the first phase of the bilateral agreement, expected to be signed by mid-March.

He added that India will offer duty concessions on a range of American goods, while sensitive agricultural and dairy products will remain fully protected. "Certain concessions will also be quota-based, such as soybean oil, to allow limited duty-free access for US exports."

The tariff concessions offered by India cover products including wines and spirits, dried distillers' grains, red sorghum for animal feed, tree nuts, soybean oil, fresh and processed fruit, cosmetics, chemicals, certain medical devices, and computer-related products.

Meanwhile, sensitive sectors such as milk, cheese, wheat, rice, maize, soy, poultry, ethanol (fuel), tobacco, certain vegetables, and meat from the US will not receive any duty concessions, ensuring protection for domestic producers.

The signing of the Bangladesh-Japan Economic Partnership Agreement (EPA) marks a historic milestone in Bangladesh's trade diplomacy, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said today (7 February).

"The deal ensures duty-free access for Bangladeshi garments and maintains favourable rules of origin, including single-stage processing, allowing garments to enter Japan tariff-free even after Bangladesh graduates from least developed country (LDC) status," the trade body of the country's apparel industry said in a press release.

Mentioning that Bangladesh exported $1.41 billion in garments to Japan in FY2024–25, the BGMEA said the EPA aims to expand this share to at least 10%, supporting Bangladesh's $100 billion garment export target by 2035.

"Japan has long been a trusted partner, supporting Bangladesh's industrial growth and economic transformation. This agreement not only secures market access but also provides a predictable trade environment for the RMG sector in the post-LDC era," the BGMEA said.

Bangladesh, Japan sign major trade deal to safeguard market access post-LDC

The association also highlighted that the EPA could reduce the country's trade deficit with Japan, diversify exports beyond garments, and attract increased investment from Japanese importers and machinery suppliers.

Bangladesh is also awaiting the finalisation of a US–Bangladesh trade deal, expected on 9 February, which is expected to provide zero-tariff access for garments using US cotton, another major boost for the sector.

On Thursday (5 February) Bangladesh and Japan signed the landmark economic partnership agreement (EPA) in Tokyo, a major step in Dhaka's efforts to preserve export market access and attract investment as it prepares to graduate from least developed country (LDC) status.

The deal, hailed by business leaders, is Bangladesh's first bilateral free trade agreement and secures continued duty-free access to Japan – the world's third-largest economy – for key exports even after LDC graduation.

Covered products include ready-made garments, leather goods, plastics, light engineering items and selected agricultural products, protecting an export market worth $2.1 billion.

Economists and business leaders described the EPA as less about tariff cuts and more about economic survival after LDC graduation in 2026. Without such an agreement, Bangladesh would face higher tariffs and stricter compliance requirements once Japan's temporary LDC preferences expire.

Bangladesh Bank purchased $196.50 million from 16 commercial banks today (5 February), continuing its efforts to stabilise the foreign exchange market and support remittances and exports.

Arief Hossain Khan, spokesperson and executive director of Bangladesh Bank, confirmed the latest purchase.

He said the transaction, conducted at a cut-off rate of Tk122.30, brings the central bank's total dollar purchases for February to $586 million.

Since July, Bangladesh Bank has bought over $4.5 billion from commercial banks through similar auctions, injecting an equivalent amount of taka into the banking system and strengthening foreign exchange reserves.

The increased availability of dollars is largely driven by rising remittance flows through banking channels, prompting commercial banks to sell foreign currency to the central bank.

A senior Bangladesh Bank official told TBS that these purchases are aimed at bolstering reserves, supporting exporters, and maintaining steady remittance inflows, forming part of a broader strategy to prevent the US dollar from depreciating against the taka.

The interim government succeeded in preventing a potential macroeconomic collapse during its 18-month tenure, but economists and business leaders say the real economy – particularly the industrial sector – has suffered significant stagnation.

The contrasting assessment emerged at a virtual roundtable titled "Interim Balance Sheet," organised yesterday by the Power and Participation Research Centre, where analysts reviewed the economic performance of the administration that assumed office in August 2024.

Mamun Rashid, chairman of Financial Excellence Ltd, said the interim administration took office in August 2024 at a time when the economy was in "freefall."

"At the very least, the collapse was halted," he said, noting improvements in foreign exchange reserves following a rise in remittances routed through formal channels after anomalies in the banking sector were addressed.

However, Rashid said economic management largely remained "business as usual," falling short of the structural reforms many had expected in the wake of the mass uprising. While the immediate bleeding was stopped, he argued, the economy failed to move into a phase of dynamic recovery.

Concerns from the industrial sector were more acute.

Bangladesh Chamber of Industries (BCI) President Anwar-Ul-Alam Chowdhury said the cost of doing business had risen by 30% to 35% over the past year and a half, pushing many firms to the brink of closure.

Despite paying higher tariffs, industries failed to receive an uninterrupted energy supply, forcing many factories to operate at just 40%-45% of capacity, he said.

The BCI president criticised what he described as the interim government's "isolated" decision-making approach.

Summing up the interim government's economic record, Power and Participation Research Centre Executive Chairman Hossain Zillur Rahman said the administration deserved credit for averting a financial crisis but warned that the incoming elected government would inherit a challenging situation.

"The macro-economy has been saved from a downward spiral, but the wheels of the real economy have slowed significantly," he said, adding that the growing disconnect between policymakers and the business community has triggered a crisis of confidence that the next government must urgently address.