Padma Bank, formerly Farmers Bank, slid into long-term insolvency after large-scale lending irregularities, failed state bailouts and continued governance failures, leaving it unable to recover defaulted loans or restore capital.

How it happened:

The bank began facing severe financial stress soon after its establishment in 2013 because of large-scale lending anomalies.
By 2018, the situation had worsened to the point where four state-owned banks and the Investment Corporation of Bangladesh injected Tk715 crore as a bailout.
State-owned banks later provided a further Tk1,000 crore through subordinate bonds and fixed deposits.
Despite these public investments, the bank failed to recover money from defaulters, allowing capital erosion to continue.
Governance problems persisted even after the board was reconstituted under the bailout package.

90% default loans, insolvent for years – Padma Bank merger still not in sight

Chowdhury Nafeez Sarafat was appointed chairman in January 2018 after former chairman Muhiuddin Khan Alamgir resigned amid allegations of financial scams.
Sarafat allegedly siphoned money from the bank to his firm, Bangladesh RACE Asset Management, further weakening the bank's financial position.
Like his predecessor, Sarafat later resigned after failing to restore the bank's financial health.
Neither Sarafat nor Alamgir has faced legal action over the alleged financial plundering.
By June 2025, Tk5,131 crore of the bank's Tk5,598 crore in loans had turned non-performing, accounting for more than 91% of total loans.
The bank recorded negative shareholder equity of Tk4,533 crore, meaning its liabilities exceeded its assets.
Continued operating losses further deepened the bank's insolvency.
The bank also accumulated Tk683 crore in dues to Bangladesh Bank, including penalties and shortfalls in maintaining mandatory cash and liquidity reserves.

Finance Adviser Salehuddin Ahmed today (2 February) said that while the interim government has made concerted efforts to stabilise the national economy, the challenges lying ahead remain formidable and complex.

Several significant hurdles persist that will require rigorous navigation, said the adviser while addressing the Sonali Bank Annual Conference 2026 as the chief guest at the International Convention City Bashundhara (ICCB) in Dhaka.

He emphasised that the future economic environment would demand resilience and a strategic approach to overcome these difficult phases.

Addressing the Sonali Bank officials, Salehuddin stressed the importance of standing as a fully professional institution.

He remarked that as a new government (elected) will eventually take over, the bank's management must work tactfully to maintain its standards.

Salehuddin Ahmed cautioned that while political and bureaucratic obstacles might arise, officials should not dismiss them casually but rather negotiate them with professional integrity.

He further advised the bank's officials on how to interact with policymakers and politicians, as he suggested that instead of an outright refusal to comply with questionable demands, officials should explain the established financial norms, audit requirements, and accounting standards that govern such institutions.

The finance adviser also urged Sonali Bank to extend its support to businesses, highlighting the necessity of financing for all types of enterprises, ranging from small-scale ventures to large industries.

He expressed his expectation that the bank would play a proactive role in fostering trade and commerce through adequate financing.

The finance adviser observed that while the overall banking sector faces various difficulties, the performance of Sonali Bank and a few other private banks remains commendable.

An additional financing agreement and a grant agreement were signed yesterday between the government of Bangladesh and the International Development Association (IDA) of the World Bank (WB) Group for an amount of US$ 150 million loan and US$0.75 million grant to implement the “Recovery and Advancement of Informal Sector Employment (RAISE) Project.”

The project has been under implementation since 2021 and is scheduled to continue until June 2026 with the World Bank support. The implementation period for the additional financing is until 31 December 2030.

Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division (ERD), Ministry of Finance and Jean Pesme, Division Director of the World Bank for Bangladesh and Bhutan signed the financing agreements on their respective sides. The project is being implemented by the Palli Karma-Sahayak Foundation (PKSF) under the Financial Institutions Division of the Ministry of Finance, said an ERD press release.Finance software

The objective of the project is to provide services that can enhance earning opportunities and employment for low-income urban and rural-youth and youth impacted by Covid-19.

The additional financing comprises a US$150 million loan from IDA and a US$0.75 million grant from the Early Learning Partnership Multi-Donor Trust Fund (ELP MDTF).

The loan carries an interest rate of 1.5 percent, a commitment fee of up to 0.50 percent on the undisbursed balance, and a maturity period of 25 years, including a 5-year grace period.

The World Bank is the largest multilateral development partner of Bangladesh. This financing reflects the deep cooperation between Bangladesh and the World Bank. Currently, the World Bank financing is covering a wide range of sectors, including economic and social development, institutional reforms, infrastructure development, and energy sector advancement.

Bangladesh’s capital market saw a major boost on Monday as the turnover at the Dhaka Stock Exchange (DSE) crossed Tk 7.0 billion for the first time this year, alongside a broad-based rally in share prices.

The total turnover on the DSE stood at Tk 7.46 billion worth of shares and units during the session. The previous highest turnover in 2026 was Tk 6.93 billion, recorded on January 27.

Before that, the turnover last crossed the Tk 7.0 billion mark on October 7, 2025, when transactions amounted to Tk 7.87 billion, making Monday’s performance the strongest in nearly four months.

The benchmark DSEX index jumped 54 points during the day. The Shariah-based DSES advanced 12 points, while the blue-chip DS30 gained 20 points. All three indices rose by more than 1 per cent in a single session.

Most stocks ended higher, with prices rising for 215 companies against declines for 107, while 68 issues remained unchanged.

In the block market, shares of 23 companies worth Tk 130 million were traded, with Fine Foods Limited topping the list at Tk 60 million.

Islami Bank Bangladesh PLC emerged as the top gainer on the DSE, surging nearly 10 per cent, while Meghna PET Industries Limited was the worst performer, shedding around 8 per cent.

The rally also extended to the Chittagong Stock Exchange (CSE), where the benchmark CASPI index rose by 111 points.

On the CSE, prices increased for 98 companies, declined for 60, and remained unchanged for 25 issues.

The turnover improved to Tk 80 million, up from Tk 60 million in the previous session.

People’s Leasing and Financial Services Limited topped the CSE gainers’ chart with a 10 per cent rise, while FAS Finance and Investment Limited ended at the bottom, losing 10 per cent.

Bangladesh Bank (BB) on Monday purchased $218.50 million from 16 commercial banks through multiple auction methods as part of its ongoing strategy to curb the depreciation of the US dollar against the taka and revitalise the remittance and export sectors.

According to central bank data, it bought dollars today at the rate of TK 122.30.

Accordingly, total purchases stood at $218.50 million in January 2026 and $4,152 million in FY 2025–26 till to date.

BYD's vehicle sales fell by 30.1 percent in January from a year earlier, the fifth straight month of decline, as the Chinese electric vehicle maker navigates external uncertainties and tough competition at home.

The automaker sold 210,051 vehicles globally last month, a stock market filing on Sunday showed. The export volume of new energy vehicle was at 100,482 units for the month of January.

Its production was down 29.1 percent, extending a losing streak which began July last year.

At home, BYD launched upgraded new versions of a number of plug-in hybrid models with long-range batteries last month, aiming to boost the appeal of its affordable hybrid models.

Sales of plug-in hybrid cars, which made up more than half of BYD's total car sales, fell 28.5 percent in January, extending a trend after they fell 7.9 percent in 2025.

BYD said in January it has targeted 1.3 million vehicles in overseas shipments for this year, suggesting a 24 percent increase from 2025 but lower than an earlier goal of up to 1.6 million vehicles its management told Citi in a meeting in November.

The company did not give reasons for the downward revision.

Its new EV plant in Hungary is expected to come online this year, adding to its manufacturing in Brazil and Thailand. It also has planned assembly plants in Indonesia and Turkey.

A 150.7 percent surge in sales abroad helped BYD unseat Tesla as the world's top EV vendor last year, offsetting mounting pressure in its home market, notably from Geely and Leapmotor in the budget segment.

BYD narrowly met its slashed global sales target of 4.6 million units last year. It has not announced the 2026 target.

The world's largest auto market is expected to deal with stagnation this year as the Chinese government scales back subsidies for trading in lower-priced models, weighing on BYD and its peers betting on budget cars.

Chinese officials are promoting the launch of a free-trade port on the tropical island of Hainan as a major step in opening the economy to foreign investors, even as global trade tensions rise and protectionism increases elsewhere.

Officials describe the transition to what they call the world's largest free-trade port as a "substantial leap" in China's efforts to open its markets to foreigners. The move, which took effect in December, allows most goods to enter the island without tariffs and offers lower taxes for companies and high earners, says the Economist.

The free-trade port (FTP) covers an area nearly the size of Taiwan and is about 30 times larger than Hong Kong. Some analysts initially speculated that Beijing aimed to create a new Hong Kong-style hub after President Xi Jinping announced the plan in 2018, though officials say Hainan's ambitions are more limited.

Under the new rules, 74% of goods can enter Hainan tariff-free. Products can be shipped to the mainland without levies if they undergo processing on the island that adds at least 30% of their value. Taxes on firms in strategic sectors and on high earners are capped at 15%, compared with rates of up to 35% and 45% on the mainland. Citizens from 86 countries, including the United States, are eligible for visa-free entry.

Despite policy support, Hainan faces challenges in shedding a long-standing reputation as an economic backwater. Designated China's only province-wide special economic zone in 1988, it has struggled to deliver sustained growth beyond tourism.

In 2024, Hainan's GDP per capita was about 76,000 yuan ($10,900), below the national average and behind most other special economic zones. The province's total GDP, about $114 billion, was among the lowest in China, hindered in part by limited infrastructure links to the mainland.

Supporters argue the island's geographic isolation could be an advantage, allowing Beijing to test reforms without disrupting other parts of the country. One closely watched pilot allows firms to apply for less restricted internet access, enabling users to visit sites such as Google and X that are blocked on the mainland.

President Xi has described the creation of the FTP as a "landmark" move to promote "an open world economy." Li Daokui, a Tsinghua University professor and government adviser, said the experiment would be closely monitored.

"This youngest and bravest student in a cohort is given permission to swim in the deep water," Li said. "Then the whole class would watch what Hainan would do."

Medical tourism is one area the province hopes will benefit. In Boao Hope City, private hospitals are allowed to use foreign-approved drugs and devices not yet authorised in China. Some facilities have struggled to attract patients, while others cater to wealthy Chinese clients.

Manufacturing firms have also shown interest. Mixue, a Chinese beverage chain, has opened a factory to import coffee beans tariff-free and sell processed products on the mainland without additional duties. Swire Pacific is building a Coca-Cola bottling plant for the China market.

However, some executives remain sceptical. "The business case is just not there," said an auto industry executive, citing a lack of talent and well-integrated supply chains.

Local authorities have sponsored visits for potential investors. Lei Jun moved his video-game design firm from Fujian province to Hainan after such a trip, saying he was "won over by the climate and subsidies."

Service industries may offer more immediate opportunities. Chi Fulin, president of the China Institute for Reform and Development, said "Hainan will lead the opening up of the country's service sector."

But he cautioned that change would take time. "You might say that Hainan, where people wear down jackets on top and flip-flops below, has a lot of inertia," Chi said. "Changing these habits is a long-term process. But if the overall environment changes drastically, if it snows heavily, can you still wear flip-flops?"

Sediment containing rare earth was retrieved from ocean depths of 6,000 metres (20,000 feet) on a Japanese test mission, the government said Monday, as it seeks to curb dependence on China for the valuable minerals.

Japan says the mission was the world's first bid to tap deep sea rare earths at such a depth.

"Details will be analysed, including exactly how much rare earth is contained" in the sample, government spokesman Kei Sato said, calling it "a meaningful achievement both in terms of economic security and comprehensive maritime development".

The sample was collected by a deep-sea scientific drilling boat called the Chikyu that set sail last month for the remote island of Minami Torishima in the Pacific, where surrounding waters are believed to contain a rich trove of valuable minerals.

It comes as China -- by far the world's biggest supplier of rare earths -- ramps up pressure on its neighbour after Prime Minister Sanae Takaichi suggested in November that Tokyo may react militarily to an attack on Taiwan, which Beijing has vowed to seize control of by force if necessary.

Beijing has blocked exports to Japan of "dual-use" items with potential military uses, fuelling worries in Japan that Beijing could choke supplies of rare earths, some of which are included in China's list of dual-use goods.

Rare earths -- 17 metals difficult to extract from the Earth's crust -- are used in everything from electric vehicles to hard drives, wind turbines and missiles.

The area around Minami Torishima, which is in Japan's economic waters, is estimated to contain more than 16 million tons of rare earths, which the Nikkei business daily says is the third-largest reserve globally.

These rich deposits contain an estimated 730 years' worth of dysprosium, used in high-strength magnets in phones and electric cars, and 780 years' worth of yttrium, used in lasers, the Nikkei said.

"If Japan could successfully extract rare earths around Minami Torishima constantly, it will secure domestic supply chain for key industries," Takahiro Kamisuna, research associate at The International Institute for Strategic Studies (IISS), told AFP.

"Likewise, it will be a key strategic asset for Takaichi's government to significantly reduce the supply chain dependence on China."

Beijing has long used its dominance in rare earths for geopolitical leverage, including in its trade war with US President Donald Trump's administration.

China accounts for almost two-thirds of rare earth mining production and 92 percent of global refined output, according to the International Energy Agency.

The country's stock market staged a strong comeback yesterday, as a broad-based rally led by banking stocks pushed the benchmark index to its highest level in nearly four months and lifted total market capitalisation above Tk7 lakh crore for the first time in three months.

The DSEX, the prime index of the Dhaka Stock Exchange (DSE), jumped 54 points, or 1.04%, to close at 5,247, marking its strongest single-day gain in recent weeks.

The blue-chip DS30 index also moved firmly into positive territory, rising 20 points, or 1.03%, to settle at 2,017, reflecting renewed investor confidence in large-cap stocks.

Market participation improved notably, with 215 issues advancing against 107 decliners, while 68 stocks remained unchanged. Turnover surged by 19% to Tk746 crore, crossing the Tk700 crore mark for the first time in four months.

The rise in trading activity signalled a return of buying interest after a prolonged period of cautious sentiment, as investors selectively accumulated fundamentally strong stocks, particularly in the banking sector.

Market analysts believe the banking-led rally could continue in the near term if turnover remains strong and macroeconomic signals stay supportive.

However, they cautioned that sustained gains would depend on clear improvements in liquidity conditions, earnings visibility and policy clarity. For now, yesterday's session provided a significant psychological boost, as the DSEX reclaimed key levels and overall market capitalisation once again crossed the Tk7 lakh crore mark.

According to EBL Securities, the capital market extended its upward momentum for a second consecutive session, with heightened participation and sustained buying in banking shares propelling the benchmark index to a near four-month peak.

From the start of the session, the market maintained a positive tone, driven largely by large-cap banking stocks amid expectations of improved economic activity and a potential revival of private-sector investment following upcoming electoral developments, according to the review.

This upbeat sentiment gradually spread across other key sectors, resulting in broad-based gains throughout the trading session.

EBL Securities noted that investors appeared more willing to take positions in beaten-down stocks, encouraged by relatively attractive valuations and hopes of policy stability in the coming months.

Banking stocks lead gains

Banking stocks emerged as the clear market leaders, posting the highest sectoral gain of 2.57% for the day. Strong buying interest was observed in several major lenders, with Islami Bank, Al-Arafah Islami Bank, Midland Bank and AB Bank featuring prominently among the top gainers.

Islami Bank surged nearly 10%, while Al-Arafah Islami Bank rose close to the upper circuit limit, underscoring the renewed appetite for banking shares.

Other large-cap sectors also contributed to the rally, although to a lesser extent. Non-bank financial institutions advanced by more than 2%, while food and allied, telecommunication and pharmaceutical sectors closed in positive territory.

Market observers said the banking rally played a pivotal role in restoring overall confidence, as the sector is often seen as a proxy for broader economic health.

Turnover data further highlighted the dominance of banking stocks in yesterday's rally.

BRAC Bank, City Bank and Islami Bank ranked among the most actively traded shares, reflecting strong participation from both institutional and retail investors. Insurance and manufacturing stocks such as Pragati Life Insurance and Simtex Industries also featured among the turnover leaders.

Despite the broadly positive session, some stocks faced selling pressure. Meghna Pet, DBH First Mutual Fund and New Line Clothings were among the notable laggards, while power and tannery stocks also saw mild corrections.

Analysts said such movements were expected amid profit-taking in select counters after recent gains.

The upbeat trend was mirrored at the Chittagong Stock Exchange, where both major indices closed higher. The CSCX advanced 72 points to 9,106, while the CASPI rose 111 points to finish at 14,691, although turnover at the port city bourse remained modest at Tk8.71 crore.

Passenger traffic through Hazrat Shahjalal International Airport continued to grow in 2025, even as overstretched infrastructure, service shortcomings and high airfares left travellers grappling with mounting difficulties.

The airport handled 12.72 million passengers in 2025, up from 12.5 million in 2024 and 11.7 million in 2023, according to airport data. The increase of around 2,23,000 passengers, or nearly 1.8%, was driven mainly by international travel, with Bangladesh sending 1.13 million workers abroad during the year.

Of the total passengers last year, 10.312 million travelled on international routes, while 2.411 million flew domestically, underlining the airport's heavy dependence on overseas traffic.

However, the steady growth has further exposed long-standing infrastructure limitations. Originally designed to handle around 8 million passengers annually, the airport is now operating at nearly double its intended capacity.

Officials acknowledge that the rising passenger load is placing immense pressure on operations, particularly during peak travel seasons.

Despite repeated assurances, the much-anticipated third terminal remains non-operational due to unresolved issues over the appointment of an operator. The civil aviation ministry has left the matter to the next elected government.

Once fully operational, the terminal is expected to increase capacity to over 20 million passengers a year and significantly improve passenger flow and service delivery. Until then, congestion remains a daily reality.

In the early days of the interim government, Expatriate Welfare Adviser Asif Nazrul announced VIP services for migrant workers. In practice, this has largely been limited to opening two lounges – one inside the terminal offering rest areas and subsidised meals, and another in the multi-storey car park.

Progresses

Despite these difficulties, some improvements have been noted by Tasneem Siddiqui, acting executive director of the Refugee and Migratory Movement Research Unit (RMMRU).

She said harassment of migrant workers at airports has declined somewhat in 2025 compared to previous years. She attributed the improvement to the round-the-clock presence of magistrates, a hotline for complaints and the introduction of body cameras for baggage handlers.

"These initiatives have brought positive change, particularly in passenger movement and baggage retrieval," she said, while stressing that reducing travel costs and ensuring dignity for migrant workers should remain priorities. "There is still a lot of work to be done."

Civil Aviation Adviser Sk Bashir Uddin did not respond to repeated attempts by TBS to contact him.

Airport Executive Director Group Captain Ragib Samad said authorities are trying to provide the best possible services within existing capacity, describing problems such as traffic congestion and the trolley crisis as temporary. He expressed hope that the third terminal would resolve many of the current challenges.

Airfares remain high

Despite government directives aimed at curbing ticket prices, airfares remain prohibitively high. Travel agents report that tickets to Middle Eastern destinations have surged from Tk35,000-40,000 to as high as Tk75,000-80,000.

Mahmudul Haque Piaru, a local travel agent, criticised the implementation of government measures, noting that a persistent seat scarcity remains the "core problem." With foreign carriers controlling 66% of the international market, experts argue that strengthening Biman Bangladesh Airlines is essential to restoring price stability.

Didarul Haque, another travel agent, echoed similar concerns. He said while some irregularities had declined due to restrictions on block and group tickets, the core problem of seat scarcity remains unresolved.

Congestion and confusion

Passenger suffering often begins before entering the terminal. Long traffic tailbacks at airport entry points have become routine, with outbound passengers frequently missing check-in deadlines due to severe congestion.

Travellers also complain about inadequate directional signage, leading some to mistakenly enter arrival or domestic terminals while searching for international departures, further aggravating traffic chaos.

Airport authorities attribute much of the congestion to stringent security checks at driveways and canopy areas. Officials also cite the prolonged construction of an underpass near the Hajj Camp, a project ongoing for nearly two years and is expected to take at least another year to complete.

Ragib Samad said the rigorous screening is "extremely urgent" to ensure safety at the airport's driveways and canopy areas.

Trolley shortages and flight disruptions

Inside the terminal, passengers face persistent trolley shortages, particularly during winter. International travellers have reported waiting up to two hours for a luggage trolley.

Airport authorities deny an actual shortage, explaining that winter fog disrupts flight schedules, causing 13 to 15 international flights to land almost simultaneously in the early morning. With only eight baggage belts at Dhaka airport, this results in severe congestion and delays in trolley turnover.

Congestion has been compounded by the downgrade of the Instrument Landing System (ILS) following damage to runway lights on 29 October. The airport is currently operating under ILS Category I, requiring a minimum visibility of 1,200 metres, compared with 500–750 metres under Category II.

Dense winter fog has therefore led to frequent delays and diversions to Kolkata, Sylhet, or Chattogram. When weather conditions improve, returning flights often arrive at once, overwhelming terminal operations.

Idle e-gates

Meanwhile, 44 e-gates installed at Dhaka and Chattogram airports at a cost of Tk34.55 crore remain largely unused. Immigration officials say passengers using the e-gates must still return to manual counters for visa verification, negating any time savings. Software integration problems have forced authorities to keep most of the gates closed.

Grameenphone, country's largest mobile telecom operator, has declared a 105% cash dividend as final to its shareholders for the year of 2025 ended on 31 December.

Earlier, it had paid a 110% cash dividend as interim, after calculating interim the total dividend is 215% for the last year, which represents 98.16% of its total profit.

According to the price sensitive statement published on its website, its earnings per share dropped by 19% year-on-year to Tk21.90 during the last year.

To approve the dividend and the audited financial statement, Grameenphone has scheduled the annual general meeting for 20 April and the record date is set for 3 March.

The country’s merchandise exports held nearly steady in January, with shipments totalling $4.41 billion, down 0.50 percent year-on-year, according to Export Promotion Bureau (EPB) data.

A slow recovery in the global supply chain and cautious order placement by international clothing retailers ahead of the general election weighed on growth.

This was the sixth consecutive month exports remained on a downward trend, according to EPB. On a month-on-month basis, however, January shipments rose 11.22 percent from $3.96 billion in December.

During the first seven months of the current fiscal year, exports declined 1.93 percent to $28.41 billion compared with the same period last year.

During the July-January period of FY26, garment shipments, the key point of the country’s trading might, fell 2.43 percent to $22.98 billion. Knitwear exports dropped 3.13 percent to $12.28 billion, while woven garment shipments fell 1.60 percent to $10.69 billion.

Inamul Haq Khan, senior vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), expressed hope for a rebound after the country’s general election on February 12.

“Because the international clothing retailers and brands did not place their full work orders considering the election year, it is a normal practice by the international retailers and brands usually before the election,” he said.

“We are hopeful that a positive change in placing of work orders by the retailers and brands after the election,” Khan told The Daily Star over phone yesterday.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said exports are expected to pick up strongly from June this year as retailers and brands begin placing orders after February.

Exporters say merchandise shipments from most major countries fell in recent months due to volatility in the global supply chain triggered by US President Trump’s reciprocal tariffs on multiple nations.

The supply chain has been gradually stabilising as the tariffs have been fixed and implemented.

Performance among the top six export sectors outside garments, such as leather and leather goods, jute and jute products, agro and agro-processed items, home textiles, light engineering, and frozen fish, showed mixed results, EPB said.

Leather and leather goods, jute and jute products, home textiles, plastics, and light engineering recorded growth both year-on-year and month-on-month.

Among key destinations, the United States remained Bangladesh’s top export market, with shipments worth $5.24 billion in July-January. Exports to the US rose 1.64 percent over the same period, 3.59 percent year-on-year, and 2.24 percent month-on-month.

Exports to other leading markets, including the European Union, also showed positive trends.

Germany and the United Kingdom retained second and third positions, with earnings of $2.85 billion and $2.7 billion respectively.

Great Britain, Spain, and the Netherlands also recorded growth both year-on-year and month-on-month.

During the July-January period, frozen food exports rose 4.94 percent to $297.56 million, while home textile shipments grew 3.26 percent to $509.97 million.

Jute and jute goods exports increased 1.97 percent to $493.85 million, and leather and leather goods exports rose 5.71 percent to $707.24 million.

Ceramics exports fell 20.91 percent to $17.63 million, and non-leather footwear shipments declined 2.06 percent to $311.53 million.

Cotton products also saw a drop, falling 17.28 percent to $305.57 million over the same period, EPB data showed.

Md Abul Hossain, chairman of the Bangladesh Jute Mills Association (BJMA), said the jute sector had been performing well because local millers can export more finished goods than raw jute.

“The value of finished goods is higher than raw jute, and the rate of value addition is also higher,” he said.

Hossain urged the government to continue the ban on raw jute exports, which was imposed in September last year.

Nestlé is managing a food safety issue in Hong Kong after the recall of 22 batches of baby milk formula, following the detection of a toxin produced by the Bacillus cereus bacterium, the company and local authorities said.

Recent follow-up investigations by the Centre for Food Safety (CFS) confirmed the presence of cereulide in five samples from the recalled batches. This marks the second detection of the toxin since the products were initially removed from store shelves, says the South China Morning Post.

The affected products include Nan INFINIPRO2 7HMO (800g), Nan PRO 1 2HMO (800g), and Illuma LUXA 1 (800g), with cereulide levels ranging from 0.2 to 1.3 micrograms per kilogram. Nestlé identified the source of contamination as an ingredient supplied to the company for these batches.

Cereulide is heat-stable, meaning it can survive standard preparation or processing temperatures, raising concerns about potential exposure.

The recall, which began in early January as a precautionary measure following similar actions in Europe, eventually covered 22 batches in Hong Kong.

The CFS said it continues to conduct follow-up investigations to ensure the safety of the recalled products.

A joint venture led by listed firm Shasha Denims is set to invest Tk350 crore to build the Ghorashal Inland Container Depot (ICD) in Ghorashal, Narsingdi, according to a stock exchange disclosure.

The depot will be developed under a design, build, finance, operate, maintain and transfer model and operated as a public-private partnership with Bangladesh Railway.

The joint venture has already signed a 30-year concession agreement with Bangladesh Railway and disclosed the investment plan through a filing on Sunday.

The project is being undertaken by Container Company of Bangladesh Limited (CCBL), to establish a multimodal inland container depot on 20 acres of land to handle import and export cargo from Chattogram and Mongla ports.

To implement the project, a special purpose company named "Ghorashal ICD and Port Limited" has been formed, in which Shasha Denims currently holds a 90% stake, the disclosure said.

The company added that the shareholding structure may change in future with the inclusion of strategic investors to strengthen the project's technical and financial capacity.

Aslam Ahmed Khan, company secretary of Shasha Denims, told TBS that the company has initially taken a 90% stake, but the ownership structure will evolve once strategic partners are brought in.

Previously, he said, "The depot will be built on 20 acres of land owned by Bangladesh Railway. The railway will only provide the land on a rental basis for 30 years, and in return, the railway will receive 15% of the total revenue."

The company expects construction to be completed by 2028, after which commercial operations will begin, he added.

In January 2024, CCBL, a government-owned company under the Ministry of Railway, floated a tender to build the multimodal inland container depot, seeking interest from local and foreign investors.

Earlier reports by TBS said the project failed to attract bidders despite two rounds of tenders, prompting CCBL to prepare for a third bidding attempt.

The project aims to ease the movement of export-import cargo to and from Chattogram and Mongla ports and is being implemented by CCBL, a subsidiary of Bangladesh Railways.

Shasha Denims is one of the leading listed textile companies, with an annual turnover of about Tk1,000 crore. In FY25, the company posted consolidated revenue of Tk1,128 crore, marking a 0.91% year-on-year decline, while profit fell 12.54% to Tk21.68 crore, with earnings per share of Tk1.57.

The board recommended a 5% cash dividend for shareholders. In the first half of the current fiscal year, revenue declined 2.33% year on year to Tk617.40 crore, while profit dropped 52% to Tk8.02 crore.

Today, Shasha Denims shares closed at Tk16 each, up 4.58% from the previous trading session.

Summit Alliance Port Limited, one of the country's leading inland container terminal and logistics operators, reported a sharp decline in revenue and profit in the first half of FY26, primarily due to a slowdown in export-related container handling and lower freight rates.

According to its price sensitive statement, the company's consolidated revenue fell by 28% year-on-year to Tk322 crore in the July–December period of FY26, while consolidated net profit dropped by 37% to Tk22.82 crore. As a result, consolidated earnings per share stood at Tk0.96, compared to a stronger performance in the same period of the previous fiscal year.

The company's consolidated net asset value per share also declined, slipping to Tk34.47 from Tk35.67 a year earlier.

Summit Alliance Port attributed the weaker performance largely to the downturn in its subsidiary Container Transportation Services Limited (CTSL), which experienced lower net profit during the reporting period due to reduced cargo volumes, a fall in freight rates and the absence of dividend income from subsidiaries.

The elimination of dividend income amounting to Tk17.32 crore further weighed on overall profitability during the first half of the fiscal year.

The half-yearly financial report showed that earnings from air and sea freight export handling under Container Transportation Services fell significantly by 38% to Tk198 crore. The decline reflects subdued export activity and intense competition in the freight forwarding segment, which compressed margins despite the company's efforts to expand its service offerings. Container Transportation Services continues to remain the primary revenue driver for Summit Alliance Port, making the group's overall performance highly sensitive to changes in export volumes and global trade conditions.

According to the Export Promotion Bureau, overall export earnings during the July-December period declined 2.19% to just under $24 billion.

Established in 2013, Container Transportation Services initially focused on domestic transportation but later diversified into freight forwarding after obtaining a customs licence in June last year. The company has since been positioning itself as an integrated logistics service provider, catering to both domestic and international clients. As part of this strategy, CTS partnered with Germany-based Hellmann Worldwide Logistics as its local agent, aiming to tap into global freight networks and strengthen operational capabilities.

In January 2025, Summit Alliance Port announced a strategic partnership with Hellmann Worldwide, under which the German logistics firm subscribed to 3.33 lakh new CTS shares at Tk66.50 each. The collaboration was designed to enhance the group's international reach and improve efficiency across South Asia. However, the benefits of this partnership have yet to fully offset the impact of weaker export demand and lower freight rates in the current reporting period.

Summit Alliance Port's shareholding structure includes Alliance Holdings with a 23.48% stake and Summit Holdings owning 8.07%. Among individual sponsors, Alliance Holdings founder and Summit Alliance Port Managing Director Jowher Rizvi holds 5.48% of the shares, while Summit Group Chairman Aziz Khan owns 7.03%.

Business Research International Corporation (BRIC) is set to establish a large-scale agro-processing industry in the Jamalpur Economic Zone (JEZ) with an investment of approximately $5.32 million.

A land lease agreement was signed today (2 February) between the Bangladesh Economic Zones Authority (BEZA) and BRIC at the BEZA office in the city, according to a press release.

Executive Member (Investment Development) and Additional Secretary Saleh Ahmed signed the agreement on behalf of BEZA, while Director and Vice President Mishal Karim signed on behalf of BRIC.

Under the agreement, a modern agro-processing plant will be established and operated as a joint venture, with a focus on promoting markets for locally produced agricultural goods. The initiative aims to strengthen the country's agro-based industrial sector and expand production for both domestic and export markets.

BEZA said BRIC will invest about $5.32 million in the proposed project on five acres of land. The project will be an export-oriented and environmentally friendly industrial venture, requiring relatively low water, electricity and gas consumption.

The company plans to start commercial production within three years. Its products will include paste, pulp, puree, juice and beverages, and spices. More than 50% of raw materials will be sourced locally.

The project is expected to create significant local employment. BRIC intends to export 15% of its output, which is expected to strengthen Bangladesh's competitiveness in international markets through modern technology and quality production.

Such investment is expected to accelerate industrialisation in the agriculture sector, boost exports, create new jobs, and contribute to sustainable economic growth in the region.

Congratulating the company, Saleh Ahmed said the JEZ is set to become a plug-and-play economic enclave.

"A leading company is expected to start production here soon," he said.

Referring to BRIC's investment, he said it was "an example of BEZA's environmentally friendly industrial initiatives" and expressed hope that "such agro-processing projects will encourage more local and foreign investors to invest in the JEZ."

The JEZ is the first government economic zone under implementation in the Mymensingh division. The zone will be developed on a total area of 436 acres and is expected to create direct employment opportunities for around 32,000 people once fully implemented.

According to the feasibility study, the zone is suitable for agro-based industries, light engineering, garments and other sectors. Key infrastructure, including gas connections, a 33/11 kV power substation, administrative and dormitory buildings, land development, a groundwater reservoir and boundary walls, has already been completed.

So far, lease agreements have been signed with 18 companies to set up industries in the zone. Construction work is currently underway for six industrial units, including a skills development centre.

US dollar purchases by Bangladesh Bank from the forex market have surpassed $4 billion so far in fiscal year (FY) 2025-26.

The banking watchdog yesterday bought $218.50 million from 16 commercial banks at a cut-off rate of Tk 122.30 per US dollar, according to official data.

This is the first US dollar purchase by the banking regulator in February.

Overall foreign exchange purchases in the ongoing fiscal year have reached $4.152 billion, reflecting continued efforts by the central bank to manage liquidity in the foreign exchange market and stabilise the exchange rate.

The central bank has been actively buying the American greenback from the market in recent months amid improved inflows and easing pressure on the foreign exchange market, officials said.

BB, which sold more than $25 billion from its foreign exchange reserves between FY21 and FY25 to help cover imports of fuel, fertiliser, and food, has begun purchasing US dollars since the start of this fiscal year as supply has increased due to higher exports and remittances.

Since early July, the Bangladeshi taka has gained against the dollar.

Bangladesh’s forex reserves have continued to rise due to the central bank’s consistent USD purchases.

Bangladesh’s gross foreign exchange reserves stood at $33.18 billion as of January 29 this year, according to BB data.

However, the figure stood at $28.68 billion under the International Monetary Fund’s Balance of Payments and International Investment Position Manual (BPM6).

Masudur Rahman, who has been investing in stock for nearly 20 years, was hopeful that at least a few state-run firms would be listed on the stock market soon, as the interim government directed authorities to do so. To his dismay, no new state-run companies were listed.

On May 11 last year, Chief Adviser Prof Muhammad Yunus gave five directives to revitalise the capital market. His directives included offloading shares of well-performing state-owned companies and listing them on the stock market, offering shares in multinational firms to the public, and offering incentives to non-listed companies that perform well, encouraging them to go public.

Around nine months have lapsed, yet the directive to list well-performing state-owned companies was not fulfilled.

Similar attempts to list state-run companies were taken by finance ministers working for the previous government, but they also could not make much headway.

“I thought the interim government would keep the bureaucrats under pressure this time, and they would be compelled to follow the directives,” Rahman said.

As per the Dhaka Stock Exchange (DSE) data, Bangladesh Submarine Cables PLC (BSCPLC) was listed on the stock market back in 2012. Since then, no other state-owned companies entered the capital market.

During the last decade, many junk or low-performing companies entered, causing the share market to become highly volatile. The chief adviser at a meeting gave the five directives to officials, including the finance adviser, the finance secretary and the Bangladesh Securities and Exchange Commission (BSEC) chairman, to bring dynamism into the stock market.

Attempts were made by the authorities to complete the directives, but progress was stalled at some point, and none of the five goals were reached.

Shortly after the May meeting, the finance ministry ordered all relevant ministries to prepare their state-owned enterprises for listing.

Abul Kalam, spokesperson of the BSEC, said that to ensure offloading shares of state-run companies and multinational companies, a potential list has been made, and the Financial Institutions Division (FID) ordered firmly that concerned ministries bring them to the market.

“The BSEC has done all they could. The next steps will have to be taken by the concerned ministries. But that’s where the progress stalled,” he said.

Another of the CA’s directives was to offer incentives to bring well-performing local companies into the market. No such incentive was also seen from the National Board of Revenue or any other authorities.

The BSEC has done its part in amending IPO rules so that good companies can get a fair price from investors.

Another order was to include foreign experts in the market reform activities. No such steps were taken.

Authorities were directed to take measures to encourage large borrowers to raise capital from the stock market by issuing equity and bonds. No progress was seen there either.

Following the CA’s directive, the BSEC has taken several strict punitive measures against those involved in corruption and market manipulation.

Saiful Islam, president of the Dhaka Stock Exchange (DSE) Brokers Association of Bangladesh, said that in realistic terms, no decision has been implemented in the last nine months despite the order coming from the head of the government, especially regarding the listing of state-run companies and multinational companies.

“It is extremely frustrating for us.”

He noted that the lack of implementation of those directives was a regulatory failure.

“The caretaker government’s tenure was a golden opportunity to implement these decisions on the listing of state-run firms for the betterment of the capital market. During any political government, such measures are difficult to implement, mainly due to non-cooperation from the bureaucracy,” he said.

“Adding at least 4-5 state-run companies within this period would have been a boost for the market,” he added.

Abul Kalam said the BSEC, Financial Institution Division and Anisuzzaman Chowdhury, a special assistant to the chief adviser, tried their best to implement the directives. A joint committee was formed, and it submitted a report to the government, outlining the necessary measures to be taken to incentivise the well-performing local companies. The Bangladesh Bank (BB) governor has said in a meeting that the government will push forward those measures.

The BB and BSEC are taking steps to make the bond market vibrant, the BSEC spokesperson added. However, such measures cannot be completed overnight, and a guideline to implement the measures was made.

Regarding the matter of appointing a foreign expert, he said, “A directive came from the higher-ups that the inclusion of a foreign expert would be time-consuming.”

In light of the situation, the responsibility was given to an academician who has foreign expertise as well as local experience.

“What else can the BSEC do?” the spokesperson said, stressing that the BSEC and the FID have taken all possible necessary steps.

While the BSEC has been diligent in following its part of the directives, the completion of the measures halted due to bureaucracy in the concerned ministries, causing stock investors to lose hope in any further progress.

Bangladesh Bank Governor Ahsan H Mansur has said that state-owned commercial banks disburse loans but have consistently failed to recover them on time, a weakness that has kept credit growth in the sector constrained for decades.

Speaking as a special guest at the Sonali Bank Annual Conference 2026 at the International Convention City Bashundhara today (2 February), the governor said long-standing structural problems had limited the role of government banks in the economy.

"If loans can be given to the right customers, those loans will no longer remain unrecovered," he said.

He noted that various restrictions had been imposed on government banks, including Sonali Bank, which were still in effect.

"Government banks can give loans, but they cannot recover them. For this reason, the flow of credit had to be contracted," he said.

He added that credit growth at state-owned banks had remained constrained since before 2000, which he described as an unsustainable model.

The governor said banks that mobilise deposits must also be able to channel those funds into productive economic activities.

"If a bank collects deposits and we cannot contribute that to the macro-economy, then our achievement will be diminished," he said.

He said Sonali Bank had been cautious in loan disbursement but now needed to strike a balance.

"Sonali Bank is distributing loans with great caution. I think now loans must be distributed with a bit of courage along with that," he said.

Ahsan H Mansur also pointed to the limited role of state-owned banks in consumer lending.

"The consumer lending sector is an important sector. In other countries, house lending is a very large sector, but the government banks of our country are unable to make any major contribution," he said.

He said Sonali Bank should be transformed into a fully commercial institution.

"Currently, Sonali Bank is operating as a partial commercial principal bank. It must be developed into commercial banking on a larger scale and become more profit-oriented," he said.

According to the governor, profits earned by the bank could help reduce its capital deficit and meet future capital and provisioning requirements, eventually enabling it to pay dividends.

He added that the government would give Sonali Bank the freedom to operate on true commercial principles and said future governments would maintain that approach.

He also stressed the need to increase remittance inflows, noting that Sonali Bank plays a significant role in opening letters of credit for the government.

The governor said Sonali Bank's non-performing loan ratio was at a "tolerable level" and had improved from earlier figures.

"I can expect it to decrease a bit more," he said, adding that loan disbursement needed to rise.

"If Sonali Bank takes Tk2 lakh in deposits, then 80% of that must be distributed as loans," he said, while emphasising the need for careful borrower selection.

He said banks must identify capable entrepreneurs at the grassroots level, particularly among small and medium enterprises, and strengthen support for export-oriented activities.

Bangladesh's merchandise-export earnings during the first seven months of the current fiscal year stayed on a negative growth trajectory as main earner garment shipments to major EU countries and other destinations contracted.

Germany and France are among the major destinations in the European Union (EU) where apparel faced a setback, being undercut by big peers in their shift away from the tariff-walled United States, industry sources said, as the latest export-performance results published.

The single-month merchandise-export earnings in January 2026 for the sixth consecutive month, on a year-on-year basis, also registered negative growth compared to the same month in 2025, according to the data released Monday by Export Promotion Bureau (EPB).

Bangladesh earned US$28.41 billion during the July-January period of the fiscal year 2025-26, reflecting 1.93-percent year-on-year negative growth against $28.96 billion in the corresponding period of last fiscal.

In the just-past month, January, the country's export earnings stood at $4.41 billion which was slightly or 0.50-percent lower than the earnings worth of $4.43 billion in January 2025.

Exports went on a year-on-year negative growth in August 2025, when the country recorded a 2.93-percent fall.

The climb-down was followed by a decline of 4.61 per cent, 7.43 per cent, 5.58 per cent and 14.25 per cent in September, October, November and December respectively.

Of the total January earnings, RMG fetched $3.61 billion, logging a 1.35- percent negative growth compared to that in the same month of 2025, the EPB data revealed.

As usual, RMG maintained its leading position, contributing $22.98 billion-notwithstanding a 2.43-percent negative growth - to the total export earnings during the first seven months of the current fiscal year.

Within this clothing segment, knitwear exports fell by 3.13 per cent to $12.28 billion, while that of woven garments declined by 1.60 per cent to $10.69 billion.

Sources say while the strong performance in July reflects resilience, the slowdown since August highlights challenges for Bangladesh's export sector amid fluctuating global demand and evolving market dynamics.

Exporters, however, attribute the country's negative export growth to weakening global demand, the imposition of reciprocal tariffs by the United States and China's increased focus on markets where Bangladesh is competitive.

They also say cutthroat global competition, rising production costs, and ongoing geopolitical and trade uncertainties have created significant external pressures, contributing to the current challenges in Bangladesh's export performance.

Talking to the FE, Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said December-to-February "is usually the season of summer orders compared to that of winter and previously there had been growth during the period".

Export still was in negative territory which according to him is not good.

MA Rahim, vice chairman of DBL Group, says buyers usually hold some of their work orders before two to three months prior to the national election and they observe the situation for at least one month after election.

He expects that buyers would come back with the orders they hold temporarily or shifted to other places once a stable political situation sustains after the election.

The US tariffs have changed the overall market dimension with decline in sales there and so decrease in placing work orders, exporters say. Moreover, China and India to offset US tariff impacts are "snatching away the work orders by offering 'aggressively low rate'".

The Indian government has also incentivised with new packages to support its exporters targeting US high tariffs whereas Bangladesh government has been withdrawing the given benefits, including cuts in incentives "in the name of LDC graduation", they lament.

They, however, expect good days ahead after the national elections, saying that the situation might change with elected government provided with required and expected policy supports in consultation with businesses.

The July-January breakdowns show home-textile exports rose 3.26 per cent year on year to $509.97 million.

Leather and leather products earned $707.24 million, up 5.71 per cent.

The agricultural sector saw a 9.88-percent negative growth to $607.28 million.

Jute and jute goods exports reached $493.85 million, marking 1.97-percent growth during the period of 2025-26 fiscal.

Frozen and live fishes recorded 4.94-percent growth to fetch $297.56 million during the first seven months of fiscal 2025-26.

Pharmaceutical exports grew by 5.03 per cent to $139.10 million.

Meantime, Bangladesh's overall exports to its major billion-dollar destinations like Germany, France, Italy, Denmark, India and Japan fell 10.35 per cent, 11 per cent, 5.46 per cent, 10.40 per cent, 4.98 per cent and 2.78 per cent during the July-January period of 2025-26.

In FY25, Bangladesh exports fetched $48.28 billion, riding on $39.34 billion earnings from RMG.