The International Monetary Fund (IMF) has cautioned Bangladesh against providing unsecured liquidity injections to weak banks, stressing the need for a tight monetary policy stance and credible banking sector reforms to restore financial stability.

The caution came as the IMF Executive Board concluded its 2025 Article IV Consultation with Bangladesh on Monday (26 January), with the authorities consenting to the publication of the staff report, according to a statement released yesterday (30 January).

The IMF noted that Bangladesh's economic growth has slowed in recent years while inflation has remained elevated.

GDP growth fell to 3.7% in FY25 from 4.2% in FY24 and 5.8% in FY23, reflecting production disruptions during the 2024 uprising, a tighter policy mix and weak investment.

Inflation eased from double-digit levels earlier in FY25 but remained high at 8.2% year-on-year in October.

IMF observed that Bangladesh's tax revenue-to-GDP ratio declined sharply in FY25, although the fiscal deficit was contained due to under-execution of capital and social spending.

Foreign exchange reserves have started to recover, supported by improvements in the current account balance.

Looking ahead, the IMF projected a gradual economic recovery, provided reforms are implemented.

Growth is expected to rebound to 4.7% in FY26 and rise to around 6% over the medium term, supported by higher revenue mobilisation and measures to address financial sector weaknesses.

Inflation, however, is projected to remain elevated at 8.9% in FY26 before easing to about 6% in FY27.

Executive directors acknowledged the interim authorities' efforts to stabilise the economy following the 2024 uprising and ahead of national elections.

However, they warned that Bangladesh continues to face mounting macroeconomic and financial challenges, including weak revenue mobilisation, banking sector vulnerabilities, incomplete implementation of the new exchange rate framework and persistently high inflation.

Directors noted uneven programme performance and said decisive and sustained policy actions would be required to restore macroeconomic and financial stability.

They stressed that full ownership of the reform programme by the next administration would be critical, alongside early engagement with IMF staff and efforts to secure stakeholder support.

On the banking sector, the IMF highlighted the urgent need for a credible reform strategy aligned with international standards.

Directors said such a strategy should include clear estimates of undercapitalisation, define the scope of fiscal support and outline legally robust restructuring and resolution plans.

They encouraged the authorities to conduct asset quality reviews for all systemic and state-owned banks, strengthen risk-based supervision and improve governance and balance sheet transparency.

In this context, the IMF cautioned against unsecured liquidity injections into weak banks, warning that such measures could undermine financial stability.

The IMF also stressed that maintaining a tight policy mix remains necessary to continue rebuilding foreign exchange reserves and reducing inflation.

Directors stressed the importance of full and consistent implementation of exchange rate reforms, along with greater exchange rate flexibility.

Monetary policy, they said, should remain appropriately tight until inflation is firmly on a downward trajectory, while efforts to modernise the monetary policy framework should continue.

On fiscal policy, directors urged ambitious reforms to boost revenue. They encouraged bold tax policy measures, simplification of the tax system and stronger tax administration and compliance.

The IMF also underscored the need to rationalise subsidies, prioritise growth-enhancing investment and improve public financial and investment management, while strengthening social safety nets to support inclusive growth.

The institution further noted that improving the financial viability of energy sector state-owned enterprises would be important for reducing fiscal risks.

Beyond macroeconomic management, the IMF stressed the importance of comprehensive structural reforms as Bangladesh prepares to graduate from least developed country status.

Directors highlighted the need to enhance governance and transparency, strengthen anti-corruption and AML/CFT frameworks and safeguard central bank autonomy.

They also supported policies aimed at job creation, particularly for young people, export diversification and continued improvements in macroeconomic statistics.

The IMF said continued implementation of reforms under the Resilience and Sustainability Facility arrangement could help Bangladesh build climate resilience and mobilise climate finance.

Bangladesh's recent shift from a manual to an online value-added tax refund system, promoted by the National Board of Revenue as a move towards transparency and efficiency, has instead created new complications for businesses, leaving around Tk1,500 crore in refunds effectively stuck.

When the NBR introduced the online VAT refund module, it said businesses would be able to apply digitally and receive reimbursements directly into their bank accounts with ease, drawing praise for the initiative from various quarters.

However, business owners now say the reality is different, with the new system proving more restrictive in many cases than the old manual process.

Under the previous system, companies could apply for full refunds of excess VAT and related duties, although the process often took time. But under the new online system, businesses can apply only for partial refunds, while additional conditions such as audits have complicated the process further.

As a result, refunds worth tens or even hundreds of crores of taka are effectively stuck, according to business representatives. They also complain that while newly created refunds can be claimed through the system, older outstanding amounts are not being reimbursed.

Officials at field-level NBR offices have acknowledged the problem, saying there is no immediate solution. This has increased concern among businesses and weakened their confidence in the online system, they added.

Concerns have also been raised about the automation of customs bond management.

Although businesses are required to comply with the automated process, the NBR has not yet developed adequate service capacity, traders say. This has led to delays in obtaining utility permissions and, in some cases, increased harassment.

On 7 January, the NBR announced that VAT refunds would be credited directly to companies' bank accounts once applications were submitted online. It also claimed the new module would ensure faster processing through a fully transparent system.

But businesses say they began to encounter serious problems soon after the system went live.

Partial refunds, blocked claims

Confidence Group, one of the country's leading conglomerates, has around Tk140 crore in VAT refunds recorded – money it says was over-collected by the government and already claimed by the company for reimbursement.

Company officials said under the new system, they can claim only the 2% advance tax deducted at the import stage, but not the 15% VAT or supplementary duty (SD).

Salman Karim, a director of Confidence Group, told The Business Standard, "Under the manual system, after calculation, refunds for VAT, advance tax or SD could be claimed and eventually paid, though it took time."

"In the new online VAT refund module, there is no option to claim anything other than the 2% advance tax. This makes recovery of the much larger amounts of VAT and SD uncertain," he said.

He added that even when the government holds money owed to a company, it cannot be adjusted against the company's VAT liabilities under the new system.

"If I am entitled to Tk40 as a refund, the new system is giving me only Tk2," he said, describing the change as an increased financial burden rather than a simplification.

This situation is not limited to the Confidence Group, as a similar picture is seen in the case of other companies as well.

A senior official from Meghna Group, another major conglomerate, told TBS on condition of anonymity that the group previously claimed Tk74 crore in VAT and advance tax refunds under the manual system.

"However, after the online system was introduced, we were told to abandon previous claims and apply afresh under the new system," the official said. "But now, apart from advance tax, no VAT refund can be claimed."

"Instead of simplifying the process, it has been made more difficult," he added, noting that audits, which were not mandatory under existing VAT law, are now required, along with other strict conditions that make refunds nearly impossible.

Large sums outstanding

According to NBR sources, businesses are owed around Tk1,500 crore in VAT refunds nationwide. Data from the Dhaka South VAT Commissionerate alone shows refund claims of about Tk211 crore from at least 25 companies.

These companies will now have to submit new applications online, but will be able to claim only a small portion of their dues, according to officials.

Commissioners at two Dhaka VAT commissionerates confirmed that only partial VAT claims are being allowed under the new system. One commissioner, speaking anonymously, said, "The NBR can better explain why this has been done."

Asked about the issue at a press conference on 25 November, NBR Chairman Abdur Rahman Khan said the process would gradually become easier.

However, officials within the relevant departments said there is no plan to refund VAT and supplementary duty under the new system.

Syed Mushfequr Rahman, a member (VAT audit) at NBR, told The Business Standard, "Under the new system, advance tax can be claimed. If, after calculation, someone is entitled to VAT, they can apply for a rebate as per the law."

A senior NBR official, speaking on condition of anonymity, said commissionerates in the past approved refunds without proper scrutiny, leading to suspected irregularities. "This system has been introduced to prevent such irregularities," he said, adding that VAT refunds would no longer be given, though rebates could be claimed where applicable.

'Cutting off the head for a headache'

Business leaders say that until 2023, refunds could be claimed for VAT, supplementary duty and advance tax collected, and were eventually paid, sometimes after two or three years. In 2023, claims for supplementary duty were stopped. With the launch of the online system, they say, VAT refunds have also effectively been blocked.

A senior executive at a large local business said, "When the government is owed money, it collects it immediately. But when it owes us, it creates excuses. The new system is a clear example of that."

Businesses also say officials have been instructed to verify refund applications against a 24-point checklist, making refunds virtually impossible for many firms.

Tax experts have also criticised the NBR's approach.

A leading chartered accountant and tax expert, speaking on condition of anonymity, told TBS, "The NBR is legally obliged to provide VAT refunds.

"If some companies obtained refunds through irregular means in the past, the NBR should strengthen its capacity to detect and prevent such abuse. Cutting off refunds altogether is not a solution. You do not cure a headache by cutting off the head," the expert said.

Of the 110,774 green buildings recognised worldwide, HAMS Garments Ltd has secured a top position, scoring 108 out of 110 points under the latest certification.

The factory owners said they had to spend less than Tk2 crore additionally to obtain recognition as a top green factory.

Although the factory does not receive higher prices from foreign buyers for green production, Shafiqur Rahman, managing director of HAMS, told The Business Standard that the recognition helps keep the company "in buyers' good books." "It is a prestigious achievement," he said.

Ananta Ahmed, managing director of 360 TSL, which works on green buildings in Bangladesh and provided technical support to HAMS for the certification, told TBS that globally, about 30 buildings have scored more than 100 points, of which nine are in Bangladesh. Notably, all of the top five such facilities are located in Bangladesh.

Explaining why HAMS scored higher than others, Ananta said the factory successfully met the criteria it had targeted within the stipulated timeframe, which helped it secure the score.

He added that the factory missed two points mainly because it could not meet the outside water-saving criteria. "There was not enough space outside the factory area to fulfil that requirement," he said.

Ananta said the main criteria for green certification include comparisons with set benchmarks on water consumption and how much energy use is reduced through energy-efficient technologies.

He said the indoor environment of the factory or building is also assessed, along with the percentage of open space outside the factory building maintained as green areas.

He added that scoring also considers, if crops are grown in green spaces, how irrigation is managed and what types of fertilisers or pesticides are used there.

He further said that the amount of carbon emissions generated by workers' commuting to and from the factory is also taken into consideration.

"Bangladesh enjoys a comparative advantage in this regard," Ananta said, noting that many workers commute on foot, which keeps carbon emissions lower and helps raise scores.

He added that areas such as location and transportation planning, site selection and management, policies and procedures, audits, training and human development, preventive maintenance systems, procurement strategy, product and material selection, and operational discipline and documentation do not require extra costs, yet together account for around half of the total score.

The factory owner said the facility, which employs about 7,000 workers, had to spend nearly Tk2 crore additionally to achieve the highest score.

Shafiqur Rahman told TBS, "The use of environmentally friendly technologies has reduced water consumption by 30% and energy use by 20% at the factory."

For the achievement, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) accorded a special reception to HAMS Garments Ltd yesterday.

Speaking at the event, BGMEA Senior Vice President Inamul Haque Khan said HAMS Garments Ltd set a new world record by scoring 108 out of 110 under the US Green Building Council (USGBC) LEED Platinum certification.

"The achievement is not just about numbers but represents the highest score among green factories worldwide," he said.

"The success has taken the prestige and capability of the 'Made in Bangladesh' brand to a new height globally and has created a global benchmark for Bangladesh's garment sector," he added.

The Dhaka International Trade Fair (DITF), the country's flagship trade showcase, closed after a month today (31 January) with sales of nearly Tk400 crore, underscoring steady domestic demand despite pressure from inflation and a slowing economy, according to the Export Promotion Bureau.

At the closing ceremony held at the Bangladesh–China Friendship Exhibition Centre in Purbachal, Narayanganj, the EPB said domestic transactions at this year's fair amounted to Tk393 crore – up 3.42% compared to 2025.

Based on data received from 329 participating local and foreign companies, the EPB reported that potential export orders secured during the fair stood at $17.98 million, equivalent to Tk224.26 crore.

Sectors attracting export orders included diversified jute products, electrical and electronics goods, home appliances, cosmetics, hygiene products, processed food, handloom, household items, home textiles, nakshi kantha and fabrics. Export orders were received from Afghanistan, Singapore, Hong Kong, Indonesia, India, Pakistan, Malaysia and Turkey.

A total of 329 enterprises participated in the fair, including 11 companies from six countries—India, Turkey, Singapore, Indonesia, Hong Kong and Malaysia—besides Bangladesh.

Products and services on display and sale covered cottage, micro, small, medium and large industries, including garments, leather goods, jute and jute products, agricultural and agro-processed goods, furniture, electrical and electronic items, cosmetics, home décor, toys, stationery, crockery, handicrafts, plastic and melamine products, herbal and toiletry items, imitation jewellery, real estate products and services, fast food and various other services.

At the closing ceremony, awards were presented to the best pavilions, stalls and enterprises across different categories.

A total of 40 institutions were recognised based on criteria such as construction and architectural design, interior decoration, product display, customer service and satisfaction, compliance with allotment conditions, cleanliness and health standards, digital contents, contribution as exporters and manufacturers, and innovation.

To promote export diversification and enhance exporters' capacity, eight seminars were organised as sideline events under a seminar series led by the EPB, in collaboration with the Ministry of Commerce, government trade promotion bodies (BSCIC, SME Foundation and JDPC), product-based trade associations (BPGMEA, BGAPMEA, BFPIA and BanglaCraft), and development partners including the World Bank, GIZ, FCDO and BSI.

The EPB said an Export Enclave was set up at the fair to showcase the capabilities of seven leading export sectors, keeping foreign buyers and local visitors in focus.

Facilities such as a Senior Citizen Corner, mother and child care centre, and a children's park were arranged to make the fair more comfortable and enjoyable for visitors of all ages.

Several voluntary organisations conducted health awareness campaigns during the fair. To ensure security, CCTV surveillance, deployment of law enforcement agencies and fire service units were in place.

The Directorate of National Consumers' Rights Protection carried out regular drives throughout the month to ensure food quality and prevent consumer harassment, the EPB added.

Commerce Adviser Sk Bashir Uddin formally declared the fair closed, with Commerce Secretary Mahbubur Rahman presiding over the closing ceremony.

Bangladesh is set to seek a binding 12-year transition period to safeguard its export-oriented economy from post-LDC-graduation trade challenges in a high-stakes strategy to be placed at the upcoming WTO ministerial meet.

Officials say the government has finalized a comprehensive Position Paper for placing at the 14th World Trade Organisation (WTO) Ministerial Conference (MC14) will be held in Cameroon on March 26-29.

The Position Paper outlines a strategy that balances the prestige of "Developing Nation" status with the pragmatic needs to shield its around U$50billion export economy from the "graduation shock."

"The four-day global trade summit…in Yaoundé will mark Bangladesh's final Ministerial appearance as a Least-Developed Country (LDC) ahead of its scheduled graduation on November 24, 2026," says one trade official.

The Bangladesh delegation, led by the Ministry of Commerce and supported by the ERD or Economic Relations Division, is expected to fly to Cameroon with a clear mandate: 'No agreement is better than a bad agreement that compromises the livelihood of millions of garment workers and small-scale farmers'.

According to the finalised position paper, Dhaka will lead the LDC group in demanding a structured graduation "Support Package".Online newspaper reader

The centerpiece of this strategy is the extension of LDC-specific Special and Differential Treatment (S&DT) for 12 years to ensure a sustainable transition into the developing-country club.

While MC13 (Abu Dhabi) secured a 3-year grace period for certain LDC supports, Bangladesh is pushing for a more robust 12-year horizon for Duty-Free Quota-Free (DFQF) market access.

"Graduation should be a reward for development, not a penalty for success," a senior official at the commerce ministry involved in drafting the paper told The Financial Express.

"Without a decade-long transition, our RMG sector-contributing over 80 per cent to national exports-could face an immediate tariff hike of 12 per cent in major markets, eroding competitiveness against regional peers," he notes.

"If a star performer like Bangladesh faces a trade crisis after graduation, it sends the wrong signal to every other LDC. Our success is, ultimately, the WTO's success."

Graduation implies a jump in tariffs from 0 per cent to nearly 9.0-12 per cent in the EU and 16-18 per cent in Canada, according a source.

Bangladesh's position is to negotiate Rules of Origin (RoO) that allow for more flexibility, moving away from "double transformation" requirements to maintain competitiveness.

The strategy involves leveraging the G-90 coalition to ensure that developed partners (EU, UK, China, Japan) honor their 3-year post-graduation grace periods (2026-2029) and push for these to be made permanent under GSP+ or similar schemes.Banking services comparison

Dhaka is seeking an extension of the TRIPS (Trade-Related Aspects of Intellectual Property Rights) waiver until 2034. The TRIPS is a non-negotiable priority. Under current LDC rules, Bangladesh can produce patented medicines without licences.

Losing TRIPS waiver in 2026 would force the U$3.0-billion domestic generic drug industry to enforce expensive patent regimes, potentially hiking local medicine prices and halting export to other LDCs.

Current WTO drafts suggest members with a global marine catch share of over 0.8 per cent (which includes Bangladesh) must face stricter subsidy disciplines.

The position paper argues for permanent S&DT for graduating LDCs to protect the livelihoods of artisanal/small-scale fishers who rely on government social-safety nets.

Currently, there are around 20 million artisanal fishers across the country.

Bangladesh will insist that subsidies for "overfished stocks" must be protected for at least 7-10 years for graduated LDCs.

As a Net Food Importing Developing Country (NFIDC), Bangladesh's position focuses on securing a "Permanent Solution" that allows the government to buy food at administered prices for stockholding without violating WTO subsidy caps and advocating for exemptions that prevent other nations from banning food exports to LDCs/NFIDCs during global crises.Newspaper subscription

The global moratorium on customs duties for electronic transmissions is set to expire at MC14.

Bangladesh is currently in a "wait and see" mode. While it benefits from the moratorium for its ICT/freelancing sector, the paper highlights the need to balance the growth of the about U$2.0-billion IT sector against potential fiscal revenue losses.

Bangladesh is likely to support a temporary extension of the moratorium but will demand Technical Assistance and a "Work Programme" that helps developing nations in building internal VAT/GST systems to capture digital trade value.

Beyond issue-specific demands, Bangladesh is expected to use MC14 to push for broader institutional reform at the WTO-most notably the restoration of the Dispute Settlement System and Appellate Body.

Here, the official position rests on some primary pillars. These pillars are support for the immediate restoration of a functional two-tier dispute-settlement system, which has been hampered by a lack of appointments to its appellate body, full alignment with G-90 proposals aimed at making development provisions more "precise, effective, and operational" rather than merely aspirational and rejecting any mandate that forces differentiation among developing member-states.Online newspaper reader

The position paper argues that without a functioning appellate mechanism, smaller economies are increasingly exposed to unilateral trade measures, arbitrary tariffs and protectionist policies by major powers.

For Bangladesh, a rules-based system with enforceable outcomes is essential as it transitions from preference-dependent status to full competition under WTO disciplines.

Domestically, the government has already operationalised its Smooth Transition Strategy (STS), consisting of five foundational pillars and 157 concrete actions.

The strategy aims to improve logistics through the National Logistics Policy 2025 and implement the Customs Single- Window system to lower the cost of doing business, which is currently seen as a bottleneck for post-LDC competitiveness.

Experts suggest the Yaoundé conference will be a "defining moment" for Bangladesh to leverage its influence as a leader of the LDC group to secure international legal guarantees.

There are 166 members under the WTO of which 75 per cent are developing countries and LDCs.

After takeover by the current interim government, local business community has called for a three-to-six-year deferral of the country's planned graduation from LDC status in November 2026, citing mounting economic headwinds and weak industrial preparedness.

Trade bodies warn that the loss of duty-free, quota-free market access, expiry of the TRIPS waiver for pharmaceuticals and the withdrawal of export subsidies could significantly erode export competitiveness.

With inflation, energy constraints and high interest rates already straining businesses, stakeholders argue the current timeline risks compounding shocks to the private sector.

While economists stress the need for long-term efficiency-driven reforms, businesses maintain that a temporary extension is critical to protecting exports and ensuring a smoother transition.

Bangladesh Bank is about to announce its Monetary Policy Statement for the rest of FY26. Once again, a familiar question has surfaced: should it cut the policy rate and begin easing monetary conditions?

The pressure is understandable. Headline inflation has come down from its peak, the real policy rate is positive, and private investment remains weak. Business groups are lobbying hard for cheaper credit. On the surface, a rate cut looks like the obvious—and politically attractive—next step.

But a closer look—based on monthly data from July 2019 to October 2025—at how inflation actually behaves in Bangladesh, how it rises, how it spreads across sectors, and how it eventually cools, suggests that cutting rates now would risk reigniting inflation through the exchange rate, slowing disinflation rather than supporting durable growth.

What makes inflation persistent

Headline CPI inflation in Bangladesh is persistent, but not explosive. When inflation rises, it tends to remain elevated for many months, continuing to erode household purchasing power long after the initial shock. At the same time, inflation does not spiral indefinitely. Over time, it drifts toward a level shaped by underlying price dynamics rather than short-term demand fluctuations.

Those dynamics are dominated by food prices. Food inflation sits upstream in Bangladesh's inflation process and is the primary source of persistence in headline inflation. This is why inflation often remains stubborn even as macroeconomic conditions tighten.

Food inflation is highly inertial. Roughly 85 percent of a food price shock carries over from one month to the next, imparting substantial stickiness to headline inflation. Prices also adjust asymmetrically: food prices rise quickly when shocks hit—whether from supply disruptions, policy frictions, or global price movements—but fall back only slowly when conditions improve.

Crucially, food inflation appears largely insulated from standard macroeconomic levers. It does not respond systematically to domestic credit growth, broad money growth, or even exchange-rate movements. Instead, it is best explained by its own past. Once food inflation rises, it unwinds only slowly—on average, only about 15 percent of the initial shock fades each month, leaving much of it in place for a long time.

This pattern points to structural features of food markets rather than macroeconomic overheating. Dominant intermediaries, markup-setting behavior, and informal extraction weaken competitive discipline. In more contestable markets, exchange rates and liquidity conditions would matter more. In Bangladesh's food markets, they largely do not.

BB's own value-chain evidence reinforces this conclusion: food inflation in Bangladesh reflects structural frictions and weak contestability across key supply chains, not excess demand—explaining both its persistence and its limited sensitivity to monetary tightening.

How shocks spread

If food inflation anchors persistence, non-food inflation is how shocks spread across the economy. Non-food inflation is less persistent than food inflation, but more responsive to macroeconomic conditions—especially movements in the exchange rate.

Persistent food inflation spills into non-food prices through cost-of-living pressures and expectations. When food prices rise, higher rents, service charges, and markups become easier to justify. Roughly half of a sustained increase in food inflation eventually feeds into non-food prices, while the reverse does not occur: non-food inflation does not feed back into food prices.

Non-food inflation is sensitive to exchange-rate movements. A 1 percent depreciation of the taka raises non-food inflation by about 0.15 percentage points within a few months—a meaningful and relatively quick pass-through that builds over time, with roughly one-third of the initial depreciation eventually showing up in prices. This response is strongly asymmetric: depreciation pushes prices up far more forcefully than appreciation pulls them down.

Together, these dynamics explain why inflation in Bangladesh rises quickly and broadly, but falls slowly and unevenly. Even after exchange-rate pressures stabilise and non-food inflation begins to ease, headline inflation remains elevated until food prices finally turn.

Implications for monetary policy

These dynamics imply a different role for monetary policy in Bangladesh than the one embedded in standard demand-based frameworks.

In conventional models, core inflation—typically defined as CPI excluding food and energy—is treated as a proxy for excess demand. Rising core inflation signals overheating; falling core inflation suggests that tighter policy is cooling demand. That interpretation does not fit the Bangladeshi data. Demand-mediated monetary transmission—where tighter policy lowers inflation by cooling domestic spending—appears weak or absent.

This does not make monetary policy irrelevant; it changes the channel through which it matters. In Bangladesh, monetary conditions influence inflation primarily through the external sector. Easier credit and lower interest rates raise demand for imports, increasing pressure on the taka. Exchange-rate depreciation then feeds directly—and asymmetrically—into non-food inflation.

Within this framework, non-food inflation plays a role analogous to "core" inflation, but with a different meaning. It does not reflect excess demand. Instead, it reflects how upstream food and exchange-rate pressures are spreading through the economy, as movements in the taka are rapidly passed through into the prices of imported goods, energy, transport, and other non-food items. Core-like measures are therefore informative as indicators of transmission, but not as signals that demand is overheating or that policy space has opened.

The absence of demand-driven inflation in domestic prices does not imply unconstrained monetary space. While credit expansion may not raise inflation through excess demand, it can still do so indirectly by worsening the external balance, weakening the exchange rate, and triggering cost pass-through into non-food prices. In this system, inflation is not demand-led but exchange-rate–mediated. Because food inflation adjusts downward only slowly, such shocks keep headline inflation elevated even after exchange-rate pressures ease.

Credit expansion can, in principle, raise output through depreciation and higher net exports. In Bangladesh, however, this channel is weak and unstable. Export supply responds slowly, imports are highly input-intensive, and depreciation feeds quickly into domestic costs, eroding real competitiveness. Growth benefits are therefore uncertain and temporary, while the inflation costs are more predictable, asymmetric, and persistent.

The decision at hand

The upcoming Monetary Policy Statement will be judged on whether BB chooses to ease or hold steady. The evidence suggests that cutting rates now would be premature. Easing risks weakening the exchange rate, reigniting inflation, and prolonging the disinflation process.

Monetary policy alone cannot fix food inflation. But BB can still influence food price dynamics by improving contestability in food markets—most directly by reducing non-price frictions in foreign-exchange and trade finance, including clearer, more predictable rules for authorised banks to open import LCs for essential food items and lower discretionary barriers that allow supply to be restricted.

A natural concern is whether easing trade-finance frictions for food imports could weaken the exchange rate and reignite downstream inflation. But improving predictability in foreign-exchange access is not equivalent to monetary easing or import subsidisation. Food import demand responds primarily to supply gaps, while rules-based access reduces hoarding and rent extraction rather than inflating volumes. By easing persistent food price pressures, such measures can support inflation expectations and exchange-rate stability over time.

Staying the course—while supporting currency stability and improving food market contestability—offers a more credible path to sustained disinflation than premature easing in the current inflation regime.

Zahid Hussain is a former lead economist of The World Bank, Dhaka Office

Depositors of Sammilito Islami Bank will be able to withdraw profit on their deposits from February 1, Bangladesh Bank (BB) Governor Ahsan H Mansur said yesterday.

All depositors’ principal amounts would remain fully secure and would be returned gradually, as previously announced, he said at a press conference at BB headquarters.

Currently, customers are allowed to withdraw up to Tk 2 lakh from any deposit scheme, he added.

The governor acknowledged that dissatisfaction has surfaced in various quarters regarding Sammilito Islami Bank, but said the authorities are working to address the issues.

“No plan can be implemented with 100 percent success. Problems are identified over time and resolved step by step,” he said, adding that some groups are attempting to obstruct the implementation of Sammilito banking operations.

Mansur said that from January 1 this year, depositors have been receiving profit at market rates.

The profit rate has been fixed at 9.5 percent for deposits with a tenure of more than one year, while deposits with a tenure of less than one year will earn 9 percent.

He said that depositors’ interests are being given the highest priority in the reform process, adding that the government’s 4 percent support for two years is costing an additional Tk 4,500 crore.

Urging depositors to remain calm, he called on the public not to be misled by rumours surrounding the bank.

The development comes several weeks after BB issued a directive to the five merged banks, Exim, First Security Islami, Social Islami, Union, and Global Islami, saying that no profit would be paid to depositors for the calendar years 2024 and 2025.

Following the backlash from depositors, the governor announced that the government would provide a 4 percent payment for those two loss-making years (2024 and 2025).

Renata PLC, one of the country's leading drug makers, posted double-digit profit growth of 25% year on year in the first half of the current fiscal year, driven by revenue growth, lower cost of goods sold and sharply reduced financing costs.

According to its financial statements, consolidated profit rose to Tk156.26 crore in July-December, with earnings per share of Tk13.58, up from Tk125.08 crore and Tk10.83 in the same period of the previous fiscal year. Consolidated revenue increased by 6.56% to Tk2,223.84 crore during the period.

In a press release, Renata said revenue from pharmaceutical products, which account for 80.7% of total revenue, grew by 10%, driven entirely by volume growth, while its animal health business remained flat year on year.

Export revenue, including subsidiary income, declined by 10.1%, while revenue from contract manufacturing fell by 28.4%.

The company said export revenue rose by 8.2% in the first quarter of FY26 but dropped by 23.4% in the second quarter, mainly due to deferred orders after inventory meant for exports was damaged in a fire at Dhaka airport on 19 October 2025.

Renata said the damaged inventory has been reordered and export order fulfilment will resume in subsequent quarters.

The decline in contract manufacturing revenue was attributed to reduced government procurement following the mass uprising of July-August 2024, which the company expects to improve after the elections.

Renata said operational efficiency was reflected in a 20.6% rise in earnings before interest, tax, depreciation and amortisation for the six months to December, as material costs rose by only 3.9% against revenue growth of 6.6%.

Lower raw material costs resulted from strong supplier negotiations and access to US dollar-denominated funding from the IFC, which reduced foreign exchange volatility amid a relatively stable exchange rate environment.

The company also reported a 7.3% reduction in financing costs following the completion of its capital restructuring, including full drawdown of low-cost IFC funding and full subscription of Tk325 crore in preference shares.

Renata said continued efforts to reduce working capital led to a Tk390 crore reduction in debt during the second quarter.

The Dacca Dyeing and Manufacturing Company Limited posted a massive loss of Tk372.20 crore in the first half of the current fiscal year, highlighting a sharp deterioration in its financial position.

The plunge comes amid falling turnover and a major accounting adjustment related to bank interest.

According to the company's price-sensitive disclosure, turnover fell 41% year-on-year to just Tk8 crore in July–December FY26. During the same period, the company reported a loss of Tk372.20 crore, compared to Tk18.20 crore a year earlier. Loss per share ballooned to Tk42.71.

The situation worsened in the second quarter alone. From October to December, revenue dropped 40% to Tk3.64 crore, while the company incurred a loss of Tk359 crore, indicating that the bulk of the half-yearly loss was recognised in this period.

Reflecting the sharp erosion of shareholder value, the company's net asset value (NAV) per share turned negative. At the end of the first half of FY26, NAV per share stood at minus Tk16.99, a stark reversal from a positive Tk25.71 in the same period last year.

Dacca Dyeing attributed the massive loss primarily to a reassessment of bank interest liabilities. The company said it had previously recognised bank interest based on estimated rates. However, following negotiations with the banks and instructions from the Bangladesh Bank policy support committee, the final interest payable was significantly higher than previously recorded.

The company explained that since the revised interest amount was uncertain over the past thirteen years, the shortfall represents a change in accounting. This led to the substantial one-time charge during the reporting period.

Shares of Dacca Dyeing fell 2.99% today (29 January) to close at Tk16.20 on the Dhaka Stock Exchange.

According to the company's annual report for FY25, it has outstanding loans from Sonali Bank, Agrani Bank, and Dutch-Bangla Bank.

Launched in 1963, the company is currently operated under the QC Group. Its board of directors includes Gias Uddin Quader Chowdhury, Samir Quader Chowdhury, Samiha Quader Chowdhury, and Sajia Quader Chowdhury, relatives of former BNP leader Salahuddin Quader Chowdhury, who was executed for crimes against humanity in 1971.

The company came under the current sponsors' ownership in 1996–97, after being managed under a state-owned bank. It also has a representative from Bangladesh Development Bank on its board, which holds a 12.44% stake in the company.

Summit Power Limited, the country's largest independent power producer, reported a sharp decline in revenue in the first half of the current fiscal year as several of its power plants remained shut or operated below capacity.

According to the company's disclosure, consolidated revenue fell by 30% year-on-year to Tk1,709 crore in the July-December period of the 2025-56 fiscal year, down from Tk2,446 crore in the same period of the previous fiscal year.

Its consolidated net profit also declined, albeit at a slower pace, dropping 10% to Tk102 crore. The company's earnings per share stood at Tk0.96, compared to Tk1.07 a year earlier.

In the second quarter alone, covering October to December, Summit Power posted consolidated revenue of Tk764 crore. However, its profitability weakened further during the quarter, with consolidated net profit falling 32% to Tk36.19 crore. The company's earnings per share for the quarter declined to Tk0.34 from Tk0.50 in the corresponding period last year.

The company attributed the significant fall in revenue mainly to the shutdown of a large portion of its generation assets. Summit Power said seven of its 15 power plants, with a combined capacity of 234 megawatts, remained shut during the period. The company's total installed generation capacity is 930.55 megawatts. The reduced operational footprint substantially lowered capacity payments and energy sales.

The disclosure also noted that following the expiry of power purchase agreements, four power plants operated only partially under a "no electricity, no payment" arrangement, while three plants remained completely non-operational throughout the year. As a result of these developments, the company recognised an impairment loss of Tk152 crore in FY25, reflecting the diminished recoverable value of certain assets.

Despite the challenging operating environment, Summit Power continued to maintain a profit, supported by plants that remained under active contracts. However, the overall financial performance highlights the growing pressure on private power producers amid changes in the power sector, contract expiries and shifting demand dynamics, according to the market insiders.

Summit Power's shares closed at Tk12.30 on the Dhaka Stock Exchange yesterday.

Two listed cement makers, Crown Cement PLC and Premier Cement Mills PLC, reported sharp profit declines in the first half of the current fiscal year, despite largely stable revenue, highlighting growing margin pressure in Bangladesh's cement sector amid intense competition and rising input costs.

Crown Cement posted revenue of Tk1,872 crore in the July–December period of FY26, up 15% from a year earlier. Second-quarter revenue rose 8% to Tk993 crore, while export earnings increased 36% year-on-year to Tk46.46 crore.

However, profitability weakened significantly. Net profit fell 48% year-on-year to Tk11.75 crore in the first half, while second-quarter profit dropped 73% to Tk5.08 crore. Earnings per share declined to Tk0.79 from Tk1.52 a year earlier.

Following the earnings disclosure, Crown Cement's shares slipped 1.87% to close at Tk47.20 on the Dhaka Stock Exchange today (29 January).

In its financial statement, the company attributed the profit drop to rising production costs and pricing pressure. Although sales volume increased 11.64% – supported by strong demand and the commissioning of its sixth production unit, adding 8,040 tonnes of daily capacity – the cost of goods sold rose 13.16%, driven by higher clinker duties and increased global raw material prices. As a result, the gross margin narrowed to 9.74% from 13.87% a year earlier.

Premier Cement Mills reported a similar trend. Its first-half revenue stood at Tk1,059 crore, nearly unchanged from the previous year, while second-quarter revenue remained flat at Tk541 crore. Export income fell 35% year-on-year to Tk9.77 crore.

The company's net profit declined 49% year-on-year to Tk1.97 crore in the first half, with second-quarter profit dropping 72% to Tk0.68 crore. Earnings per share fell to Tk0.19 from Tk0.36 a year earlier.

Premier Cement's shares dropped 2.67% to close at Tk36.40 on the DSE following the announcement.

Advanced Chemical Industries (ACI) PLC has approved an investment of Tk640 crore in its subsidiary, ACI Logistics Limited, which operates the country's leading retail chain Swapno. The move is aimed at strengthening the business and supporting future growth.

The decision was taken at ACI's board meeting on Thursday, according to a disclosure on the company's website. The investment will be made through the subscription of 6.4 million convertible preference shares of ACI Logistics, each with a face value of Tk1,000.

The total subscription amounts to Tk640 crore and is expected to be completed on or before 31 March 2026, subject to approval from the relevant regulatory authorities.

Swapno, the flagship brand of ACI Logistics, is one of Bangladesh's largest organised retail chains, with a widespread presence across the country. The fresh capital is expected to strengthen the balance sheet, expand operations, and enhance supply chain efficiency amid stiff competition in the retail sector.

Market insiders said the move reflects ACI's continued commitment to its retail business, which has been expanding rapidly despite challenges such as rising operating costs and margin pressure in consumer goods. By investing through convertible preference shares, ACI is also maintaining strategic flexibility to manage its stake in the subsidiary over the long term.

In a separate decision, ACI's board approved the formation of a dedicated institution focused on artificial intelligence. The new entity, named ACI Institution of Artificial Intelligence, will receive an initial investment of Tk5 crore and is subject to regulatory approval.

Company officials said the institute will help ACI build expertise in artificial intelligence, data analytics, and digital solutions, strengthening technological innovation across its businesses.

Industry observers noted that the initiative comes at a time when major Bangladeshi conglomerates are increasingly adopting AI to improve efficiency, optimise supply chains, enhance customer engagement, and support research and development. For a diversified group like ACI, AI-driven solutions could impact pharmaceuticals, consumer goods, agribusiness, and retail operations.

ACI PLC is one of the country's leading conglomerates, with operations spanning pharmaceuticals, consumer brands, logistics, and retail.

Advanced Chemical Industries (ACI) PLC has decided to form and establish a dedicated institution focused on artificial intelligence as part of its efforts to strengthen technological innovation and future-ready capabilities across its businesses.

According to a disclosure, the decision was taken at the company's board meeting held on Thursday. The board approved the formation of the institution under the name "ACI Institution of Artificial Intelligence," with an initial investment of Tk5 crore.

The proposed institute will be established subject to the approval of the concerned regulatory authorities.

Company officials said the initiative reflects ACI's strategic intent to invest in advanced technologies and build internal expertise in artificial intelligence, data analytics and related digital solutions.

Industry observers noted that the move comes at a time when large conglomerates in Bangladesh are increasingly exploring artificial intelligence to enhance operational efficiency, optimise supply chains, improve customer engagement and support research and development.

For a diversified group like ACI, AI-driven solutions could play a significant role across its pharmaceuticals, consumer goods, agribusiness and retail operations.

ACI PLC is one of the country's leading conglomerates, with a presence in pharmaceuticals, consumer brands, logistics and retail.

MJL Bangladesh Limited, a leading lubricant and energy company, has reported a year-on-year decline in its consolidated revenue and profit for the first six months of the current fiscal year, as customers faced ongoing economic challenges and increasingly shifted toward lower-cost products.

In the July to December period, the company's consolidated profit decreased to Tk100.88 crore, which is 53.61% lower from Tk217.44 crore in the period of the previous year, according to its financial statements.

The company said changes in consumer purchasing behaviour – driven by cost pressures and cautious spending – negatively affected sales volumes and profit margins during the period. As customers prioritised affordability, demand for premium and higher-margin products weakened.

Since MJL primarily manufactures and markets high-quality products, the growing preference for low-cost alternatives had a direct impact on the company's revenue performance. The shift in consumer demand limited sales growth and exerted pressure on overall profitability during the reporting period.

The share price of the company closed at Tk92.40 on the Dhaka stock exchange on Thursday (29 January).

Revenue down 17.52%

In the July to December period, the company made revenue of Tk2017.53 crore, which is 17.52% lower from Tk2446.12 crore compared to the same period of the previous year, said the financial statement.

In the first six months, its earnings per share stood at Tk3.86, which was Tk6.66 a year ago.

In the October to December quarter, its consolidated profit reduced to Tk4.74 crore, which is down from Tk104.27 crore in the period of the previous year.

In this quarter, the company made revenue of Tk1027.88 crore, which is lower from Tk1200.65 crore compared to the same period of the previous year.

In the October to December quarter, its earnings per share stood at Tk0.80, which was Tk3.23 a year ago.

'No compromise on product quality'

A senior company official, speaking on condition of anonymity, said they never compromise on product quality, which makes its products slightly more expensive than competitors in the market.

"Due to inflationary pressures and challenging economic conditions, customers are increasingly shifting toward lower-cost alternatives, which has affected the sales of high-value, quality products," he added.

Meanwhile, imports of liquefied petroleum gas (LPG) from Iran have become more difficult due to existing sanctions. The company usually imports these raw materials through Singapore. Since these products cannot be imported secretly, the restrictions have directly impacted the company's business operations.

Its net asset value per share stood at Tk52.72 at the end of December 2025.

The company owns a state-of-the-art lube oil blending plant and offers high-performance and authentic lubricants, grease products and other innovative energy solutions to the local market and exports some of its products to the international market as well, according to its financial statement.

In FY25, MJL recommended a 52% cash dividend of their shareholders. As on December 2025, the sponsors and directors jointly hold 71.52%, institutions 22.15%, general investors 6.33% of the company.

Seven state-owned listed companies have bucked the prevailing market trend, delivering a collective profit of Tk1,544 crore in the first half of the current fiscal year despite a broader downturn that has left 56% of all listed firms in the red.

This combined profit represents a significant 47.57% increase over the Tk1,046.65 crore recorded by the same firms during the July-December period of the previous fiscal year.

While these seven leaders flourished, the government's overall portfolio remained mixed, as nine other state-linked firms posted a combined loss of Tk761 crore, though this was a slight improvement from the Tk867 crore loss recorded previously.

Power Grid top profit maker

Power Grid Bangladesh PLC, a state-owned power transmission firm, witnessed a staggering 236% growth in profit in the first half of 2025-26 fiscal year as its total income surged and decreased expenses.

According to its statements, in H1 of FY26, it made a profit of Tk476.63 crore, which was Tk141.68 crore in H1 of FY25.

Its profit in the second quarter during the October to December, however, declined 71.60% to Tk113.09 crore.

Its report showed that its revenue in H1 increased by 9.52% to Tk1,671 crore.

Due to foreign currency volatility for its foreign loans, Power Grid witnessed a significant blow in its profitability.

In the last three fiscal years, it had incurred a loss of Tk1,294 crore, and in the last two fiscals, it failed to declare any dividends for its shareholders.

Regarding its profit growth, Power Grid states its profit surged due to an increase in total income by Tk167.86 crore and a decline in total expenses by Tk167.07 crore.

Oil suppliers sees growth

Of the three listed fuel suppliers, Padma Oil and Meghna Petroleum posted growth in their profit, but Jamuna Oil saw declines in profit by 18% due to not accruing interest in the four merged banks into Sammilito Islami Bank.

Padma Oil's profit surged by 20% to Tk299 crore and Meghna Petroleum by 3% to Tk309.44 crore riding on their non-operating income mostly came from the income of fixed deposits receipts (FRDs).

Jamuna Oil posted a profit of Tk216.81 crore, which was Tk264.11 crore in the same time of the previous fiscal year.

Jamuna Oil said its profit decreased as interest on bank deposits with Sammilito Islami Bank for the period of second quarter of FY26 has not been accrued."

It also said interest accrued for the first quarter of FY26 earlier has been written back; because it is presumed that interest from bank deposits with Sammilito Islami Bank could not be realised.

According to the auditor, Jamuna Oil Company has a total investment of Tk1,541.08 crore in six banks.

Jamuna Oil has investments in FDRs of Tk326.11 crore and Tk393.84 crore in SND accounts at First Security Islami Bank, Tk432 crore in Global Islami Bank, Tk289.49 crore in Union Bank, and Tk18.64 crore in Social Islami Bank.

Besides, it has investments of Tk74 crore in Bangladesh Commerce Bank and Tk7 crore in National Bank, and some institutions that have also faced challenges.

Submarine Cable posts 59% growth

Bangladesh Submarine Cable Company posted a 59% year-on-year growth in its profit in the July to December of FY26.

Its net profit grew to Tk146.66 crore, which was Tk92.21 crore in H1 of FY25, its financial report showed. Its revenue also grew by 29% to Tk251.58 crore.

Regarding growth, Bangladesh Submarine Cable said revenue increased primarily due to a significant rise in IPLC rent, IP Transit service, and co-location service, as well as the substantial efforts of the company's management and supportive government policies.

The company added that the increase in EPS is the result of higher revenue and other income from ordinary business activities, leading to a positive impact on EPS. It also noted that there were no significant extraordinary transactions during this period.

Desco returns to profit

Dhaka Electric Supply Company (Desco) also returned to profit, reporting Tk90.49 crore in earnings compared with a Tk6.07 crore loss a year earlier. Its revenue rose 6% to Tk4,105 crore, as electricity sales increased both in volume and value, driven by growth in customer numbers and industrial and commercial consumption.

Titas's loss narrows

Titas Gas Transmission and Distribution PLC narrowed its loss to Tk390.32 crore in the first half, down from Tk711 crore in the same period last year. The company cited higher operational income and a reduced tax deduction rate as key factors behind the improvement.

ICB hits lower capital gain, interest burdens

The Investment Corporation of Bangladesh (ICB) remained under pressure, posting a Tk311 crore loss in H1, wider than the Tk117 crore loss recorded a year earlier. The institution had absorbed a Tk1,214 crore loss in the previous fiscal year.

Although it earned Tk74 crore in interest income, ICB paid Tk550 crore against deposits and borrowings. Dividend income fell 8% to Tk197 crore, capital gains plunged 81% to Tk33.62 crore, and fees and commission income dropped 29% to Tk59.46 crore. Officials attributed the weak performance to capital market volatility and limited share sales.

Sugar mills loss widens

Losses widened at two listed sugar mills. Zeal Bangla Sugar Mills posted a Tk29 crore loss, up from Tk22.17 crore a year earlier, while Shyampur Sugar Mills reported a Tk12.53 crore loss. Shyampur has remained closed for several years following a government decision amid sustained losses.

Other loss-making companies include Eastern Cables, Usmania Glass Sheet Factory, Atlas Bangladesh and Renwick Jajneswar. National Tubes and Eastern Cables, which were profitable in the same period last year, slipped into losses of Tk4.28 crore and Tk5.65 crore respectively in the first half of FY26.

Eurozone growth beat expectations to reach 1.5 percent last year, official data showed Friday, picking up pace for a second year running in spite of a bruising trade standoff with the United States.

Europe is working to close the gap with economic rivals China and the United States, and spiking tensions with President Donald Trump’s administration over trade have created added impetus to bolster its competitivity.

Last year’s uptick in the single-currency area’s economy builds on the modest 0.9 percent expansion recorded in 2024, after an anaemic 0.4 percent a year earlier.

Analysts at Bloomberg had forecast growth to be 1.4 percent, while the European Commission itself predicted 1.3 percent.

Quarter-on-quarter growth for the eurozone reached 0.3 percent in the last three months of 2025, according to statistics agency Eurostat.

“Accelerating growth in Germany, Spain and Italy, to a lesser extent, made up for slow growth in France,” said ING chief economist Bert Colijn.

The eurozone ended the year with “decent economic growth despite significant uncertainty and economic tension,” he wrote.

Data released Friday in Germany showed its economy grew faster than expected at the end of 2025, expanding 0.2 percent over the year, suggesting a recovery is gathering pace in Europe’s struggling industrial powerhouse.

But annual growth in the eurozone’s second-biggest economy France slowed to 0.9 percent, national data showed, impacted by a disappointing fourth quarter as the government wrestled with passing a new budget.

Spain’s economy meanwhile grew at more than twice the eurozone average last year, expanding 2.8 percent, fuelled by strong consumer demand, rising exports and robust tourism.

The eurozone’s fourth-largest economy has outshone its peers since 2021, supported by low energy costs, domestic consumption and a tourism boom since the end of the Covid pandemic.

Analysts at Capital Economics said they expected Spain to “continue to outperform for some time as high immigration boosts employment and domestic demand.”

Spain’s left-wing government credits immigration for much of the country’s dynamic economic growth of recent years, and has recently moved to regularise around 500,000 undocumented migrants.

ING’s Colijn said the eurozone-wide outlook for 2026 was “becoming more upbeat”, with industrial production expected to benefit from defence investments and German infrastructure spending in particular.

He predicted “accelerated growth over the coming quarters,” noting that even a “modest” pickup would be something to celebrate given the “significant turmoil” in international relations.

But he warned other factors were set to keep dragging on growth, from the uncertain global environment to a loss of competitiveness across the eurozone.

“These broader structural concerns are not being addressed quickly enough at the moment, which curbs longer-term prospects,” he said.

Across the broader 27-country European Union, the economy expanded by 1.6 percent last year, the data showed.

EU leaders will hold talks on competitiveness next month in Belgium as the bloc seeks to revive its economy and foster innovation.

The bloc’s competitiveness push has produced mixed outcomes so far, according to an annual assessment published Friday by the European Commission, which is pushing for stepped-up action.

Of a broad set of indicators examined in the report, six showed declines, six improved and 15 remained broadly unchanged.

Areas showing improvement ranged from the use of artificial intelligence by businesses to renewable energy production and the mutual recognition of diplomas and professional qualifications across member states.

By contrast, the share of intra‑EU trade in the bloc’s economy showed a decline, as did private investment levels and European students’ results in the PISA international education survey.

Navana Pharmaceuticals has posted a year-on-year significant improvement in its financial performance for the first six months of the current 2025-26 fiscal year, driven by higher sales, improved profitability, and stronger operating cash flows.

According to the unaudited financial statements for July to December, the net profit of the company stood at Tk36.27 crore, which is 50.22% higher than Tk24.14 crore compared to the same period of the previous year.

On Thursday, the share price of the company increased by 2.67% to Tk57.60 on the Dhaka Stock Exchange.

In the July to December period, the company's diluted earnings per share (EPS) rose to Tk3.35, which was Tk2.25 in the previous period of FY25.

In October to December quarter, the company's diluted earnings per share (EPS) rose to Tk1.65 for the October-December 2025 quarter, compared to Tk1.00 in the same quarter of the previous year. This represents a year-on-year growth of 65%, reflecting improved operational efficiency and cost management.

The company attributed the earnings growth to a combination of increased net sales, improved gross profit margins, and a reduction in finance costs. Higher revenue generation, supported by better market demand and efficient production planning, played a key role in boosting profitability during the reporting period.

At the same time, lower borrowing costs and prudent financial management helped ease pressure on expenses, further supporting the bottom line.

In addition to earnings growth, the company also recorded a substantial improvement in its operating cash flow position. Net operating cash flow per share increased sharply to Tk8.11 for the July-December 2025 period, compared to Tk3.16 in the same period last year.

The rise in operating cash flow was primarily driven by higher cash receipts from customers, which exceeded cash payments made to vendors and other operating expenses during the period.

Meanwhile, the company's net asset value (NAV) per share also showed steady growth. NAV per share stood at Tk48.32 as of 31 December 2025, compared to Tk45.29 as of 30 June 2025.

The company stated that it remains focused on maintaining operational efficiency, managing costs prudently, and strengthening its financial position amid evolving market conditions.

Incorporated in 1986 in Bangladesh, Navana Pharma produces both human and animal drugs.

The veterinary division manufactures and markets more than 123 high-quality medicines and feed supplements for different segments, including poultry, dairy, and aqua products.

On the other hand, the human health division produces more than 277 drugs – tablets, capsules, oral liquids, ampoules, dry powder vials, powder for suspension, eye drops, creams, ointments, etc.

Navana Pharma sells these products in the domestic and international markets. It exports products to 15 countries.

Singer Bangladesh Limited, a subsidiary of Beko – the flagship brand of Türkiye's Koç Holding – posted a hefty loss of Tk225 crore in 2025, prompting the company to skip dividend payouts for the first time in its history.

Despite recording a 14.3% year-on-year increase in revenue, the company slipped deeper into the red mainly due to a sharp rise in finance costs, which surged 124.7% amid higher interest rates, financing of stretched working capital, lower-than-expected demand realisation, and foreign exchange losses.

Operating and sales expenses also grew faster than revenue, further weighing on profitability, Singer said in its annual corporate declaration.

The company will hold its annual general meeting (AGM) digitally on 20 April, while the record date has been set for 26 February.

Loss widens sharply

Singer Bangladesh, a leading consumer electronics and home appliances maker, reported that its losses widened by Tk175.97 crore, or 359%, in 2025. Loss per share stood at Tk22.56.

Revenue rose to Tk2,132.61 crore in 2025 from Tk1,865.8 crore a year earlier. In 2024, the company incurred a loss of Tk48.93 crore, with a loss per share of Tk4.91, yet paid a 10% cash dividend to shareholders.

Singer attributed its 2024 losses to macroeconomic challenges, despite a 9% growth in revenue that year. In its 2024 annual report, the company had expressed optimism, citing a stabilising external environment and the commissioning of a new plant as factors that could support a turnaround in the current financial year.

In a price-sensitive information (PSI) disclosure, Singer said that although turnover increased in 2025, gross profit margin declined by 2.3 percentage points compared to 2024. Selling prices could not be adjusted to offset higher product costs due to intense market competition, resulting in margin erosion.

Interest expenses soars 138%

Interest expenses jumped 138.3% year-on-year, driven mainly by interest on long-term loans— including IC foreign and syndicated loans—after the commencement of commercial production at the new factory in March 2025. Short-term borrowings also rose alongside higher interest rates, while an 8% depreciation of the euro against the taka since March 2025 added to finance costs through exchange losses.

Net asset value plunges

Singer's net asset value (NAV) dropped sharply to Tk16.8 crore in 2025 from Tk257.4 crore a year earlier. The company attributed the decline to a substantial increase in both long- and short-term debt, including Tk651.3 crore in long-term loans for new manufacturing facilities in an economic zone and Tk1,394 crore in short-term borrowings to meet working capital needs.

Built in 2022 with an investment of $78 million (around Tk800 crore), the factory—spread over 135,000 square metres—aims to localise production by manufacturing about 90% of Singer's products domestically.

This marked the first investment in Bangladesh by Arçelik, the flagship company of the Turkey-based Koç Group, which acquired Singer Bangladesh in 2019.

Steel manufacturer GPH Ispat has reported an 86% year-on-year decline in profit in the first half of Fiscal Year (FY) 2026, citing a sharp fall in revenue alongside persistent operating and finance costs.

According to the company's financial statements, earnings per share (EPS) fell to Tk0.09 in the July–December period, down from Tk0.65 in the same period of the previous FY, blaming the lower sales volumes, which, combined with fixed operating and financing expenses.

In the second quarter alone (October–December), EPS dropped 92% year-on-year to Tk0.04, compared to Tk0.51 in the corresponding quarter of FY25.

The weak half-year performance follows GPH Ispat's first-ever annual loss since its stock market debut in 2012.

In FY25, which ended in June, the Chattogram-based steelmaker posted a loss of Tk24.68 crore, reversing a profit of Tk85.77 crore recorded in FY24. Rising production costs and escalating finance expenses were key factors behind the loss.

Despite the setback, GPH declared a 5% cash dividend for general shareholders for FY25, its lowest payout since listing. The company had paid a 10% cash dividend in FY24, while its highest dividend was 20% in FY21.

In October 2024, GPH sought approval to issue Tk500 crore in preference shares to reduce high-cost debt, but the Bangladesh Securities and Exchange Commission (BSEC) rejected the proposal.

Earlier, the regulator also turned down the company's plan to raise Tk242 crore through a rights issue aimed at capacity expansion.

Advanced Chemical Industries (ACI) PLC posted strong growth in revenue in the first half of the current fiscal year, reflecting steady domestic demand and continued expansion of its operations.

According to the company's financial disclosure, consolidated revenue rose by 18% year-on-year to Tk7,794 crore in the July–December period, compared to Tk6,619 crore in the same period a year earlier.

It posted a consolidated net profit of Tk30 crore during the half-year, which was a net loss of Tk64 crore in the same time a year ago.

ACI PLC is one of the country's leading conglomerates, with a presence in pharmaceuticals, consumer brands, logistics and retail.