Ratna Patra, one of the directors of Square Pharmaceuticals PLC, has announced her intention to purchase 10 lakh shares of the company at the prevailing market price through both the public and block markets of the Dhaka Stock Exchange.

The disclosure was made on the DSE website yesterday, stating that the shares will be acquired within the next 30 working days.

Following the disclosure, shares of Square Pharmaceuticals closed 0.38% higher at Tk209.80 yesterday and emerged as the most traded stock on the DSE for the day. At the closing price, the total value of Ratna Patra's proposed purchase stands at around Tk21 crore, according to market estimates.

The announcement comes shortly after a similar move by the company's managing director, Tapan Chowdhury, who on 5 January expressed his intention to buy 20 lakh shares of Square Pharmaceuticals through the DSE.

Market participants view these back-to-back disclosures as a strong show of confidence by the company's top management at a time when the broader equity market continues to grapple with weak sentiment and low liquidity.

Analysts said insider share purchases by sponsor-directors are often interpreted as a positive signal, particularly during volatile or uncertain market conditions. Such moves suggest that management believes the company's share price does not fully reflect its underlying fundamentals or long-term growth potential. In the case of Square Pharmaceuticals, repeated insider buying over the years has helped reinforce investor confidence, especially among long-term shareholders.

Since 2020, four directors of Square Pharmaceuticals have collectively acquired about 1.51 crore shares of the company, with total investments amounting to nearly Tk300 crore. These purchases were made between February 2020 and April 2025, reflecting sustained confidence by sponsor-directors in the country's largest drug maker.

During this period, chairman Samuel S Chowdhury bought 50.25 lakh shares, while managing director Tapan Chowdhury also acquired an equal number. Two other directors, Ratna Patra and Anjan Chowdhury, purchased 30.25 lakh shares and 20.25 lakh shares respectively.

Square Pharmaceuticals is currently the second-largest listed company on the Dhaka Stock Exchange by market capitalisation, valued at around Tk18,500 crore, which represents roughly 5.6% of the total market capitalisation of the bourse.

According to the company's December shareholding statement, sponsors and directors jointly hold 43.59% of Square Pharma's shares. Institutional investors own 14.54%, foreign investors hold 14.52%, while general investors account for the remaining 27.35%.

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), lost 39 points last week (11-15 January) amid declining investor participation and selling pressure, with share prices of the majority of stocks falling and turnover shrinking.

Of the five trading sessions during the week, the index edged up in three sessions and fell in two, shedding 39 points or 0.80%, DSE data showed.

However, DSEX witnessed a jump of 88 points in the previous week (4–8 January) as investors focused on buying sector-specific stocks, largely blue-chip shares.

Last week, besides the declining indices – DS30, the blue-chip index by 2.22 points and DSES, the shariah index by 15 points – turnover fell to Tk1,900 crore week as overall market participation remained muted as most investors largely stayed on the sidelines with the daily average at Tk380 crore – down 20% from the previous.

Meanwhile, of the traded issues, prices of 93 stocks advanced, 268 declined, and 25 remained unchanged.

EBL Securities in its weekly market commentary said, "The capital bourse observed a weakening momentum after three consecutive weeks of recovery, as market sentiment turned cautious amid concerns over the ongoing domestic gas crisis and prevailing geopolitical tensions."

"The week opened on a dismal note, weighed down by broad-based selling in the first session as investors were rattled over emerging adversities."

"Although selective large-cap stocks saw tentative buying interest in subsequent sessions, it provided only limited support and was proven insufficient to offset the broadly subdued market trend. Meanwhile, investor participation was also shifted to the insurance sector owing to positive expectation over the recent sectoral developments, it noted.

Investors were mostly active in Pharma sector, followed by General Insurance and Bank.

Among the top turnover stocks, A-category shares – companies that pay dividends of over 10% – led the chart, while Z-category stocks dominated both the top gainers and top losers lists.

Of the top ten gainers, six were Z-category stocks, two A-category, and two B-category. Among the top ten losers, nine were Z-category stocks, with only one from the A category.

Alongside expanding the essential medicines list, the government is set to introduce a new pricing policy mandating pharmaceutical companies to ensure at least 25% of their annual sales from these essential drugs.

Under the new policy, companies that fail to meet the 25% threshold will be barred from seeking approval for new drugs, as applications will not be considered by the authorities.

The policy has been approved by the health ministry and is now awaiting gazette notification.

The government on 8 January announced the expansion of the National Essential Medicines List, adding 135 drugs and raising the total to 295, and said their prices will be fixed soon. It also announced that the National Medicine Pricing Policy 2025 has been finalised.

While officials describe the move as a major step towards improving access and affordability, pharmaceutical industry leaders have sharply criticised the policy, calling the mandatory supply requirement unrealistic and detached from market realities.

Manufacturers also allege that they were not meaningfully consulted during the formulation of either the expanded essential medicines list or the new pricing framework.

Industry representatives said that although their association submitted position papers and supporting documents to the pricing committee, these were not reflected in the final policy.

Infograph: TBS
Infograph: TBS

Why manufacturers avoid essential drugs

Dr Md Zakir Hossain, secretary general of the Bangladesh Association of Pharmaceutical Industries (BAPI), told The Business Standard that no pharmaceutical company in Bangladesh produces only essential medicines.

"Some companies produce just 5–10% essential drugs, while many newer firms produce none at all," he said. "Imposing a 25% requirement without revising prices would inevitably lead to financial losses or even factory closures."

He noted that the previous list of 117 essential medicines had remained largely unchanged for decades, with prices revised only twice in the last 32–33 years, making production commercially unviable.

"At current regulated prices, manufacturers incur heavy losses. This is why many companies avoid producing essential medicines," he said.

Dr Zakir warned that several saline manufacturers have already shut down due to compulsory pricing policies and pointed to regulatory bottlenecks in importing raw materials, which require multiple layers of approval. He added that companies have yet to receive official guidance on how the new pricing framework will be implemented.

Syed S Kaiser Kabir, chief executive officer and managing director of Renata, echoed similar concerns, describing the policy as disconnected from ground realities.

"The decision to mandate at least 25% of total production as essential medicines was taken without consulting the industry and bears no relation to the current market structure," he told The Business Standard.

"This reflects a command-economy mindset," he said. "If the government fixes prices below production costs, no company will manufacture the product. That is basic economics."

Questioning the demand assumptions, he added: "Where is the market for 25% of my total output to be essential drugs? Should companies manufacture excess products and stockpile them? No product can be produced without demand."

Abdul Muktadir, president of BAPI, said the health ministry had excluded industry stakeholders from the pricing process altogether.

"We were not consulted at any stage, and even now we do not know whether this policy will ultimately benefit or damage the pharmaceutical sector," he said.

Public health experts urge caution

Dr Md Abu Zafor Sadek, a pharmacist and former World Bank consultant, welcomed the expansion of the essential medicines list, calling it a positive step for public health. However, he cautioned that rigid price controls could undermine quality, disrupt supply continuity and discourage future investment.

He said collaborative pricing mechanisms, rather than unilateral price fixation, were more likely to serve patients effectively. On the proposed 25% production requirement, he added that business decisions tend to function best when guided by market demand rather than compulsion.

Government calls policy a 'landmark decision'

Announcing the updated essential medicines list on 8 January, Md Sayedur Rahman, special assistant to the chief adviser for the health ministry, said essential medicines address nearly 80% of common diseases.

He said price regulation of these medicines would directly improve affordability and availability for the majority of the population, describing the initiative as a "landmark decision".

According to him, a task force spent the past 14 months consulting manufacturers, researchers, international organisations and other stakeholders on the pricing framework.

"Not everyone agreed, and reaching full consensus is difficult," he said. "But the policy reflects broad-based consultation."

Once gazetted, all essential medicines will fall under price regulation, with no exceptions, he added.

'Win-win situation', says task force member

Syed Abdul Hamid, professor of health economics at Dhaka University and a member of the task force on the National Essential Medicines List, said prices of essential medicines were rarely adjusted after 1994, causing manufacturers to gradually abandon them.

"As companies shifted towards medicines with indicative prices, doctors prescribed those more frequently, forcing patients to buy relatively expensive alternatives," he said.

He argued that the new formula-based pricing system would bring essential medicines back into the market at affordable prices. By way of example, he said a drug that should have cost Tk2 was previously unavailable, forcing consumers to pay Tk10 for substitutes.

"Companies will still earn profits, but these will be regulated profits," he said, adding that the system would also curb aggressive marketing, as additional promotional costs could no longer be passed on to consumers.

"If implemented properly, this policy can create a win-win situation for both the public and the pharmaceutical industry," he said.

Cost-plus pricing for essential medicines

Under the new rules, essential medicines will be priced using a cost-plus benchmarking method to determine the maximum retail price (MRP), excluding VAT.

The government-nominated committee or the DGDA will set MRPs based on the cost of raw materials – including active pharmaceutical ingredients (API) and excipients – as well as primary packaging and class-based markups.

Primary packaging costs will be included as they come into direct contact with medicines, while secondary and tertiary packaging costs will be excluded to prevent unnecessary price escalation.

Reference pricing for non-essential medicines

For non-essential medicines, manufacturers will propose the MRP, subject to DGDA approval.

If seven or more companies produce a medicine, the median market price will be used as the benchmark under the Internal Reference Pricing system. If fewer than seven companies manufacture the drug, the lower of the internal or international reference price will apply.

In all cases, the approved MRP must remain within 15% of the benchmark price.

For imported finished medicines, prices will be set based on the C&F value, prevailing exchange rate and a predetermined markup.

New generics, biologics and API import rules

Patent-free new generic medicines not previously marketed in Bangladesh will be priced using a benchmarking method that includes raw material costs, primary packaging, secondary and tertiary packaging, and a 1.30 markup for essential medicines.

Biologics — including vaccines, insulin injections and gene therapies — will be priced based on an objective assessment of production costs and a regulated, sector-priority profit margin.

To promote domestic API production, importers will be required to obtain a no-objection certificate (NOC) from the DGDA before importing APIs.

An NOC will be granted if the importer can demonstrate that the API is either not produced locally in sufficient quantity or that domestic prices exceed international reference prices by more than 20%. The DGDA is required to issue the NOC within seven working days of receiving a complete application.

India's civil aviation authorities have slapped a penalty of Rs22.20 crore on the country's biggest airline IndiGo for massive disruption of services in December 2025.

The Directorate General of Civil Aviation (DGCA) said in a statement today (17 January) that in addition to the fine, Indigo has been ordered to pledge a bank guarantee of Rs50 crore in favour of the civil aviation sector regulator to ensure compliance with the directives and long term systemic correction.

Responding to the DGCA order, IndiGo, which has over 60% share of India's burgeoning civil aviation market, said it will take full cognisance and take appropriate measures.

The DGCA said the imposition of financial penalty was decided after a four-member committee appointed by it made a comprehensive assessment of the circumstances leading to large-scale delays and flight cancellations by IndiGo from 3 to 5 December 2025, resulting in cancellation of 2,507 flights and delays of 1,852 flights and causing inconvenience to over three lakh passengers stranded at various airports.

The total penalty includes one-time systemic penalties of Rs1.8 crore.

The committee observed that IndiGo's management failed to adequately identify planning deficiencies, maintain sufficient operational buffers and effectively implement the revised Flight Duty Time Limitation (FDTL) provisions, the statement said, adding "these lapses resulted in widespread flight delays and large-scale cancellations, causing inconvenience to passengers.

The DGCA said the inquiry committee conducted a detailed probe and thoroughly studied the network planning, rostering and software being deployed by Indigo for the same.

At its core, banking is about pricing and managing risk. Trouble begins when risk is quietly recycled within the system rather than reduced or spread adequately across the board. In trading bonds, that is increasingly what is happening in the country’s banking sector.

Commercial lenders issue subordinated bonds and buy them from one another to strengthen capital in line with regulatory requirements.

While this boosts capital ratios on paper, it does not attract funds from corporates or individual investors to the desired level, which goes against the very purpose of bank bond trading. The practice keeps risk tightly concentrated within the banking sector.

Put simply, it is like households in a neighbourhood lending to and borrowing from each other, rather than spreading risk by transacting with better-off groups. The exposure does not vanish; it just circulates.

In the three years since 2022, banks accounted for around 80 percent of subordinated bond investors, according to official data. The consequence hit three years later, when the Bangladesh Bank in 2025 put five ailing lenders in the merger process.

Of them, four banks collectively owe institutional investors about Tk 2,900 crore in Mudaraba subordinated bonds and more than Tk 1,000 crore in Mudaraba perpetual bonds.

That enormous Tk 3,000 crore could simply disappear from the books, since bond investments do not have the insurance protection deposits enjoy.

RISK BUILDING INSIDE

Under banking regulations, subordinated bonds count as Tier-2 capital. In the event of a failure, these bonds are repaid only after depositors and senior creditors, making them higher risk and higher return than deposits.

Banks deduct subordinated bonds from their demand and time liabilities but lend using the bond proceeds. This can worsen liquidity mismatches in a fragile banking system.

When banks subscribe to one another’s bonds, no fresh capital enters the sector. Even when corporates appear to buy bonds, many of these investors are provident funds of other banks, keeping exposure within the system.

“Deposits of one bank are effectively being shown as capital of another,” said AF Nesaruddin, former president of the Institute of Chartered Accountants of Bangladesh (ICAB). “That erodes the quality of capital.”

The Bangladesh Bank has previously recognised the danger of direct cross-buying, where two banks subscribe to each other’s bonds. The banking regulator instructed banks to avoid such transactions to limit contagion risk.

Banks then adopted somewhat a circular subscription, according to data.

Under this arrangement, Bank A buys Bank B’s bonds, Bank B buys Bank C’s, and Bank C buys Bank A’s. While technically compliant with the rules, the effect is much the same.

“It keeps almost the same risk within the system,” said Asif Khan, president of CFA Society Bangladesh, a platform for practitioners in the investment and fund management industry.

“If one bank fails, the stress spreads to others,” he added.

Khan said the practice goes against the spirit of the central bank’s directive but said banks are driven into it by a lack of investors. According to him, strengthening the demand side of the bond market could resolve the problem.

BANKS ARE NOT THE VILLAINS

Bankers and analysts say heavy reliance on bank-to-bank bond subscriptions is caused by a weak bond market rather than reckless behaviour by the lenders.

The country’s bond market has historically been thin, with limited liquidity and a narrow investor base. Although some subordinated bonds are listed on the stock exchange, trading is rare, making exits difficult.

As a result, individual investors shy away, while corporates hesitate to lock funds into long-term instruments.

Interest rates also work against bank bonds. In recent years, yields on risk-free treasury bills and bonds have exceeded returns on subordinated bank bonds.

“Why would investors subscribe to subordinated bonds when treasury rates are higher?” said Tanzim Alamgir, managing director and chief executive officer of UCB Investment Limited, which manages around 50 subordinated bonds.

Shah Md Ahsan Habib, a professor at the Bangladesh Institute of Bank Management (BIBM), said the lack of institutional investors leaves banks with few options.

“There are no vibrant bond markets and no institutional investor base, so banks are forced to go to other banks,” he commented.

Syed Mahbubur Rahman, a former chairman of the Association of Bankers, Bangladesh, said banks have limited scope to sell subordinated bonds to corporates.

“Corporates are reluctant to invest in long-term instruments, while individual investors want liquidity,” said Rahman, who is also the managing director and CEO of Mutual Trust Bank.

THE SCALE OF EXPOSURE

According to an analysis of 18 banks’ 2024 financial statements, around 80 percent of subordinated bonds were subscribed by other banks, while the rest went to corporates.

Among corporate subscribers, provident funds of banks still accounted for a large share.

In 2022, banks accounted for 96 percent of subscriptions. The ratio fell to 86 percent in 2023, showing a gradual rise in non-bank participation, though the market is still heavily skewed towards banks.

Of the 18 banks, Pubali Bank attracted the highest share of corporate subscribers at 65 percent. Nine banks failed to attract any corporate investors at all.

According to 2024 data, Agrani Bank subscribed Tk 350 crore of Mudaraba subordinated bonds issued by Exim Bank, while Standard Bank invested Tk 125 crore.

More than half of Exim Bank’s bondholders are now banks facing potential losses.

Mudaraba bonds issued by First Security Islami Bank and Union Bank were fully subscribed by other banks.

Since 2016, banks have issued subordinated bonds worth more than Tk 35,000 crore, according to the Bangladesh Securities and Exchange Commission (BSEC).

WHAT REGULATORS ADMIT

A senior central bank official said the regulator ordered banks to include corporate subscribers after realising that bank-to-bank subscriptions weaken capital quality.

Arief Hossain Khan, spokesperson for the Bangladesh Bank, said subordinated bonds allow banks to reduce their capital deficit.

“It is true that when a bank invests in another bank’s bond, it ultimately sends deposits to capital, which is not happy information. So, the central bank is considering this and trying to increase participation of corporates instead of banks,” he added.

Abul Kalam, spokesperson for the BSEC, said subscriptions by banks do not create real capital, even though they count as Tier-2 capital.

“Deposits of one bank are shown as capital of another,” he said.

He added that small savings and corporate funds need to be channelled into bonds for the proceeds to qualify as genuine capital.

While BSEC requires bond issuers to list, a lack of buyers due to low trust in issuers remains a problem, added Kalam.

Canada’s Prime Minister Mark Carney and Chinese President Xi Jinping agreed on a raft of measures from trade to tourism on Friday at the first meeting between the countries’ leaders in Beijing in eight years.

The Canadian leader hailed a “landmark deal” under a “new strategic partnership” with China, turning the page on years of diplomatic spats, tit-for-tat arrests and tariff disputes.

Carney has sought to reduce his country’s reliance on the United States, its key economic partner and traditional ally, as President Donald Trump has aggressively raised tariffs on Canadian products.

“Canada and China have reached a preliminary but landmark trade agreement to remove trade barriers and reduce tariffs,” Carney told a news conference after meeting with Xi.

Under the deal, China — which used to be Canada’s largest market for canola seed — is expected to reduce tariffs on canola products by March 1 to around 15 percent, down from the current 84 percent.

China will also allow Canadian visitors to enter the country visa‑free.

In turn, Canada will import 49,000 Chinese electric vehicles (EVs) under new, preferential tariffs of 6.1 percent.

“This is a return to the levels that existed prior to recent trade frictions,” Carney said of the EV deal.

Trump, who has cut off trade talks with Ottawa and insists the United States does not need any products from its northern neighbour, told reporters it was “good” that Carney had secured an agreement during his trip. “If he can get a trade deal with China, he should do that,” the president said.

The head of the Canola Council of Canada, Chris Davison, called the deal an “important milestone”.

But the Global Automakers of Canada, an industry group, voiced concern.

The deal may be an “expression of goodwill” to ease pressure on the canola industry, but allowing thousands of Chinese EVs into Canada at a low tariff rate “risks creating significant market distortions” and could hurt companies that employ Canadians, the group said.

Welcoming Carney in the Great Hall of the People, Xi said China-Canada relations reached a turning point at their last meeting on the sidelines of the APEC summit in October.

“It can be said that our meeting last year opened a new chapter in turning China-Canada relations toward improvement,” Xi told the Canadian leader.

“The healthy and stable development of China-Canada relations serves the common interests of our two countries,” he said, adding he was “glad” to see discussions over the last few months to restore cooperation.

Ties between the two nations withered in 2018 over Canada’s arrest of the daughter of Huawei’s founder on a US warrant, and China’s retaliatory detention of two Canadians on espionage charges.

The two countries imposed tariffs on each other’s exports in the years that ensued, with China also accused of interfering in Canada’s elections.

But Carney has sought a pivot, and Beijing has also said it is willing to get relations back on “the right track”.

The Canadian leader, who on Thursday met with Premier Li Qiang, is also scheduled to hold talks with business leaders to discuss trade.

Canada, traditionally a staunch US ally, has been hit especially hard by Trump’s steep tariffs on steel, aluminium, vehicles and lumber.

Washington’s moves have prompted Canada to seek business elsewhere.

In October, Carney said Canada should double its non-US exports by 2035 to reduce reliance on the United States.

But the United States remains far and away its largest market, buying around 75 percent of Canadian goods in 2024, according to Canadian government statistics.

While Ottawa has stressed that China is Canada’s second-largest market, it lags far behind, buying less than four percent of Canadian exports in 2024.

A time-bound structural and policy rejig of the revenue system is imperative for restoring and sustaining Bangladesh's macroeconomic stability as insufficient domestic resources upend government plans and generate overall volatility.

To this end, a multi-stakeholder taskforce on revenue reform is likely to recommend that the government complete major tax-policy reforms in near and midterms within next five years, beginning under the current interim government and finishing under the upcoming elected one.

The 'National Taskforce on Tax Restructuring', formed in October last following the political regime change, in order to review the country's revenue framework, is scheduled to submit its report by January 31, 2026, in line with its mandate.

The taskforce will focus on structural adjustments and development of the overall tax framework to help Bangladesh achieve its fiscal goals.

Talking to The Financial Express, Dr Zaidi Sattar, who heads the taskforce, said the report would place strong emphasis on revenue-policy reforms aimed at removing longstanding bottlenecks to trade and investment.

According to a notification issued in October last, the taskforce will prepare recommendations for raisin the tax-to-GDP ratio to a desired level and suggest both short- and long-term policy measures for a business- and trade-friendly tax regime that supports overall economic growth.

"Although we were asked to provide short- and long-term recommendations, we believe most of the reforms need to be implemented within the medium term," says the economist.

Dr Sattar, chairman of the Policy Research Institute (PRI), thinks the current interim government may be able to implement some of the recommendations but the bulk of the reforms would need to be carried forward by the next elected government.

Referring to the ongoing process of bifurcation of the revenue administration, he says the government is creating two separate divisions but the committee's recommendations would focus solely on the tax-policy division.

Responding to a query on the tax-GDP target up to 2035 set in the medium and long-term revenue strategy (MLTRS) framed by the National Board of Revenue, Dr Sattar said Bangladesh must raise the ratio in line with its transition from the least-developed country (LDC) status.

The NBR targets to raise Bangladesh's tax-to-GDP ratio to 10.5 by the fiscal year 2034-35, as part of its newly formulated 10-year revenue strategy.

"For a graduating LDC, the tax-to-GDP ratio should be upgraded to an average range of 15 to 20 per cent," he added.

The interim government formed the high-powered national taskforce to restructure the country's tax system with the aim of boosting revenue collection and raising the tax-GDP ratio to an acceptable level.

The other members of the panel include Dr. Sultan Hafiz Rahman, Professorial Fellow at BRAC Institute of Governance and Development (BIGD), Dr. Syed Mainul Ahsan, Professor Emeritus at Concordia University, Canada, Dr. Mohammad Zahid Hossain, Chairman of Bangladesh Krishi Bank, and Dr. Sajjad Zohir, Executive Director of the Economic Research Group (ERG).

In September last, the government dissolved the previous committee on NBR reform. The present taskforce was formed within a week of the dissolution of the committee.

A much-hyped 'social business' is getting institutionalized through newly introduced microcredit banks meant for empowering grassroots down-and-outs and firing up rural economy across Bangladesh.

In what officials tout as a landmark move for the country's financial landscape, the Advisory Council of the post-uprising interim government Thursday endorsed the Microfinance Bank Ordinance that allows individuals and organisations to set up such banks for commercial run in a newly defined way.

"This latest law is set to revolutionise the microcredit sector by allowing eligible micro-finance institutions (MFIs) to transition into full-fledged specialised banks," says one official.

With Chief Adviser of the Interim Government Professor Muhammad Yunus, the council meeting approved the ordinance broadly aimed at "deepening financial inclusion and providing the unbanked population with more sophisticated financial tools beyond simple credit".

The Nobel-laureate head of interim government is a longtime proponent of switching to 'social business' dedicated to advancing social-uplift goals instead of aggrandizing commercial interests.

Earlier, the Financial Institutions Division (FID) had drafted the law and consulted stakeholders before making the final version of the draft. After completion all the formalities, the draft law was placed before the cabinet meeting Thursday.

The law introduces a structured framework for evolution of the microfinance sector, which currently serves over 40 million clients. The new banks will operate primarily as "social businesses", officials said.

Each of the potential microfinance banks will have to have minimum Tk 5.0 billion as authorised capital while Tk 2.0 billion as paid-up capital.

Under provisions of the law, investors can recover their initial capital but profits beyond that must be reinvested into the bank to "further social goals rather than being distributed as traditional dividends".

The ordinance ensures that 60 per cent of the shares in the new banks would be held by the poor members (borrowers) themselves aimed at ensuring the empowerment of the down-and-outs at grassroots levels.

While MFIs currently operate under the Microcredit Regulatory Authority (MRA), the newly formed microfinance banks will fall under direct regulation and supervision of the central bank (Bangladesh Bank).

Unlike traditional MFIs, these banks will be authorised to accept public deposits, offer insurance products and remittance services, access domestic and foreign grants and loans more easily, provide specialised credits for microenterprises and cottage industry.

A senior official says the microfinance-bank ordinance does not force all NGOs to become banks. "NGOs can choose to convert entirely or only transfer specific branches into the new banking structure, while their remaining operations continue under the MRA," he told The Financial Express.

Meanwhile, the approval for the ordinance comes amid debate within the development sector-some liking, some loathing.

The Credit and Development Forum (CDF) hails the move as a "landmark step" to eliminate high-interest borrowings from commercial banks. Some critics express concern about the potential "commercialization" of a sector built on social mobilisation.

However, the government maintains that the "Social Business" clause is a robust safeguard against profit-seeking motives, ensuring the mission remains focused on poverty alleviation.

By allowing these institutions to collect deposits, the government hopes to reduce the cost of capital for micro-loans, which has historically been high due to MFIs' reliance on commercial bank loans.

This shift is expected to provide a significant boost to the rural economy and small-scale entrepreneurs ahead of the upcoming fiscal year, the authorities say, on an upbeat note on the emergent financial derivation.

Three years after Saudi Red Sea Gateway Terminal (RSGT) took over the operation of the Patenga Container Terminal (PCT), the crucial port facility still cannot deliver as expected due largely to infrastructure shortfalls and operational weaknesses.

This comes out in a post-completion evaluation by the Implementation Monitoring and Evaluation Division (IMED).

The IMED said the Saudi firm has yet to install a full set of container-handling equipment at the terminal built by the Chattogram Port Authority (CPA), limiting its ability to handle the targeted number of containers.

An insufficient number of gantry cranes, only one jetty being fully operational instead of three, and the absence of an integrated automated system linking customs, security and port management are blamed by the IMED for the terminal's underperformance.

The evaluation found that both the Cost-Benefit Ratio (CBR) and Internal Rate of Return (IRR) fell short of targets set in the original and revised project documents.

Project documents projected a financial CBR of 1.18 and an economic CBR of 1.03, with financial and economic IRRs of 9.80% and 12.30% respectively. Actual outcomes, however, show a financial CBR of 1.02 and an economic CBR of 0.54, while financial and economic IRRs stand at 4.18% and 6.52%—well below expectations.

IMED noted that the terminal is currently handling around 2–2.4 lakh twenty-foot equivalent units (TEUs) annually, far below the original target of 4.5 lakh TEUs. The report said output could rise to as much as 8 lakh TEUs a year if backup areas were expanded, but warned that without rapid infrastructure upgrades, full automation and stronger operational coordination, the terminal is unlikely to achieve its potential.

While the master plan envisaged berthing three large container vessels simultaneously, only two jetties are functioning. One of these two jetties, built with a cantilever dolphin structure, cannot accommodate large container ships, further constraining capacity.

The report also said the main gate is not fully operational even three years after project completion, forcing container trucks to use an alternative gate beside the administration building, raising security concerns and causing traffic congestion.

Implemented by the CPA under the Ministry of Shipping, the project period was extended by 75%, from July 2017-December 2019 to December 2022, prompting IMED to question planning and execution capacity.

IMED found that several vehicles – including Pajero SUVs, motorcycles, pickup trucks, an ambulance, pilot boats and speedboats – were procured at higher costs than estimated in the revised project document, while firefighting vehicles included in the plan were not purchased. During physical inspection, the project director could not present any of the procured vehicles on site, raising concerns about transparency and oversight.

The report also highlighted foreign port visits by officials from the Ministry of Shipping, CPA and the Bangladesh Army's 24 Engineering Brigade to ports in Singapore, New Zealand and Australia. However, no individual or group "lessons learnt" reports were submitted, leaving unclear whether the knowledge gained was applied to the project.

However, the overall project cost fell significantly. The original DPP estimated the cost at Tk1,868.28 crore, which was reduced to Tk1,229.58 crore in the revised DPP, and ultimately declined to Tk1,147.97 crore upon completion.

The IMED report further stated that although the estimated cost of the completed project was reduced by 34.18%, the implementation period was extended by 75%. In the feasibility study report, the estimated cost of constructing the physical infrastructure of the Patenga Container Terminal (PCT) was proposed at Tk759.33 crore without any draft or master layout plan. Based on the feasibility study, the project proposal (DPP) was prepared, and under the revised DPP the project was implemented at a cost Tk357.76 crore higher than the original estimate, amounting to Tk1,117.09 crore. IMED sought an explanation from the implementing agency, the CPA, regarding the justification for this increased cost.

IMED recommended preparing an urgent, comprehensive, internationally standard master plan to modernise Chattogram Port, urging the Ministry of Shipping to consider both banks of the Karnaphuli River—Patenga and Anwara—in an integrated manner.

Project director Mizanur Rahman Sarkar told TBS that the IMED report had not yet reached him but said all documents would be provided if explanations were sought. He said the Bangladesh Army's 24 Engineer Construction Brigade carried out the main works after ministerial approval, with the port authority overseeing implementation.

He added that the operator is currently running at about 50% capacity and is expected to reach full capacity around 2027. Responding to observations on the main gate and dolphin jetty, he said the main gate is operational and that the dolphin jetty is intended for lighter vessels and liquid cargo carriers, not large container ships. He also noted that gateway and operational components fall under separate projects with different project directors.

With Ramadan fast approaching, Bangladesh's supply chain for essential food items is coming under strain as a severe shortage of lighterage vessels has stalled cargo discharge at Chattogram Port's outer anchorage, raising fears of shortages and price hikes during the fasting month.

Port data show that as of 15 January, 108 cargo vessels were waiting at the outer anchorage and the Kutubdia channel, carrying more than 45 lakh tonnes of cargo. Of these, 17 vessels were loaded with around 12 lakh tonnes of Ramadan-related food items, including wheat, maize, soybean, chickpeas, lentils and edible oil. Another five vessels were carrying more than 2 lakh tonnes of sugar, while seven were loaded with fertiliser, and 25 carrying cement clinkers.

Under normal conditions, a 50,000-tonne mother vessel can complete discharge within seven to 10 days using lighterage vessels that shuttle cargo to river ports and terminals. But the current shortage has pushed waiting times to 20-30 days, with some ships unable to unload at all for days at a time.

Demand outstrips supply

The impact is already visible. The Queen Trader, which arrived at Kutubdia on 8 January carrying 54,000 tonnes of wheat for Akij Flour Mill, RB Traders and Crown Traders, has managed to unload only 5,870 tonnes in the past five days – far below the normal daily rate of 7,000-8,000 tonnes. At this pace, port sources estimate, full discharge could take around 40 days.

The Water Transport Coordination Cell (WTCC) says demand for lighterage vessels is far outstripping supply. On 13 January, 104 lighterage vessels were required to serve 90 mother ships, but only about 50 could be allocated.

To prioritise food consignments, authorities have temporarily stopped allocating lighterage vessels to large companies that operate their own fleets. Even so, shortages persist. Ten government fertiliser vessels have been waiting for more than a week without any lighterage support, raising the risk of stock shortages at government warehouses and renewed pressure on the agricultural sector.

Port Authority monitoring situation

Shipping Adviser Brigadier General M Shakhawat Hossain said the authorities are aware of the crisis.

"The ministry and the port authorities are monitoring the situation. The Department of Shipping, the Chattogram Port Authority and other relevant agencies are working on the ground to locate the missing lighterage vessels. If any irregularities are found, strict action will be taken," he told The Business Standard.

Staggering daily demurrage

Traders and shipping agents warn that the delays could destabilise markets just as Ramadan-related demand peaks. Sarwar Hossain Sagar, president of the Bangladesh Ship Handling and Berth Operators Association, said unloading operations have slowed to a near standstill.

"A ship that should leave in 10 days is now waiting 25 to 30 days," he said. "Importers are paying $15,000 to $20,000 per ship per day in demurrage. When you multiply that across nearly 90 vessels, the cost becomes staggering."

Industry estimates put the combined daily demurrage bill at $1.6-2 million, a burden that importers say will inevitably be passed on to consumers through higher food prices.

"This is no longer just a port problem," said a major food importer, requesting anonymity. "Every extra day a ship waits offshore adds to our costs. Those costs ultimately hit the wholesale and retail markets."

Several factors

WTCC officials say the shortage is being driven by several overlapping factors. Dense fog in recent weeks has disrupted river navigation, while 631 lighterage vessels are currently stuck at 41 ghats across the country, including 51 vessels engaged in transporting government-imported fertiliser. Delays in fertiliser bagging, shortages of trucks and labour, and congestion at government warehouses have prevented these vessels from unloading and returning to service.

"Out of around 1,020 registered lighterage vessels, if more than 630 are stuck, a shortage is inevitable," said WTCC Convener Haji Shafi. "On top of that, another 200 to 300 vessels are away delivering cargo across the country."

He added that lighterage traffic has also increased on routes serving Mongla and Payra ports, as well as on Indian routes, further reducing availability for Chattogram.

Ship handlers blame mismanagement

Ship handlers, however, argue that mismanagement and rigid rules are making the situation worse. They allege that some lighterage vessels are being used as floating warehouses ahead of Ramadan and that allocation practices are too inflexible.

Khairul Alam Sujan, former director of the Bangladesh Shipping Agents' Association, said stricter monitoring is needed.

"Using lighterage vessels as warehouses must be stopped, and the shipping ministry should bring all stakeholders to the table. Otherwise, the country risks food shortages during Ramadan," he said.

Operators also criticised regulations that prevent the use of privately owned or factory-owned lighter vessels at the outer anchorage.
"There are many vessels owned by importers that are sitting idle," said Sarwar Hossain. "Emergency flexibility is needed so alternative vessels can be used for essential food cargo. That alone could significantly ease the congestion."

Ripple to be felt through entire economy

With Ramadan drawing closer, business leaders warn that any prolonged disruption at Chattogram could ripple through the entire economy, tightening supplies in wholesale markets and pushing up prices for basic food items.

Port users say the crisis has moved beyond routine congestion and now threatens national supply-chain stability, calling for urgent, coordinated intervention to clear the backlog and protect Ramadan supplies.

A recently published Bangladesh Bank (BB) report shows a significant rise in financial inclusion of the rural population, especially women, in several sectors, including agent banking, deposit, CMSME, and cooperatives.

The strong rural footprint of banking infrastructure reflects a strategic push to reach beyond urban centers, BB said in its Financial Inclusion Report Bangladesh 2024.

The report offers a comprehensive update on the country’s financial inclusion landscape as of December 2024. It states that the extensive network of financial players, emphasis on rural connectivity, and integration of mobile financial services (MFS) showcase a deep commitment to inclusivity.

Data from the report reveals that internet banking and point-of-sale services recorded strong growth during the year, reflecting Bangladesh’s strategic push towards a cash-light, digital-first economy.

Agent banking continued its rapid expansion, with total outlets rising to 21,248, of which 85.6 percent were located in rural areas. The segment now serves more than 2.4 crore accounts, holding deposits of Tk 41,900 crore.

Notably, female ownership in agent banking reached 50 percent, indicating progress in gender inclusion.

Financial access among underserved groups also improved through no-frill accounts, which stood at 3.10 crore by the end of 2024. Nearly 70 percent of these accounts were based in rural regions, highlighting ongoing efforts to bring low-income populations into the formal financial system.

Credit flow to small businesses remained robust, with CMSME (cottage, micro, small and medium enterprises) loan disbursement amounting to Tk 62,600 crore. A growing share of this lending went to cottage and micro enterprises, supporting grassroots economic activity.

The microfinance sector remains crucial for inclusive growth, with over 42 million accounts, daily loans and savings, primarily benefiting rural and low-income populations.

Microfinance has remained pertinent in enabling small-scale entrepreneurs, farmers, and women-led enterprises to access funds that support livelihood activities and contribute to local economies, the BB report adds.

Cooperatives remain vital for accelerating financial inclusion across rural and urban communities and have been serving over 1.25 crore members (32 lakh women).

Despite its progress, the cooperative sector still faces some challenges, including the presence of inactive cooperatives, limited manpower, and the need for stronger transparency in management, the report mentions.

Gender and youth inclusion showed steady gains. Female-owned deposit accounts increased from 5.07 crore to 5.5 crore, an 8.48 percent rise.

School banking programmes covered 43.8 lakh accounts, with rural areas accounting for 53.28 percent of the total, while female participation reached 49.02 percent.

As per the report, key achievements include substantial growth in digital financial services, with MFS transactions of Tk 164,000 crore in 2024, a 32.02 percent increase from the previous year and total MFS accounts rising by 8.3 percent to 238.6 million, complemented by 18.3 crore MFS agents.

The report noted progress under the National Financial Inclusion Strategy, with 69 percent of targets fully achieved and 28 percent partially met by December 2024, while stressing the need for stronger digital literacy, infrastructure and interoperability to sustain momentum.

President Donald Trump on Saturday vowed to implement a wave of increasing tariffs on European allies until the United States is allowed to buy Greenland, escalating a row over the future of Denmark's vast Arctic island.

In a post on Truth Social, Trump said additional 10% import tariffs would take effect on 1 February on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Great Britain — all already subject to tariffs imposed by Trump.

Those tariffs would increase to 25% on 1 June and would continue until a deal was reached for the US to purchase Greenland, Trump wrote.

TRUMP WANTS GREENLAND FOR SECURITY, MINERALS

The president has repeatedly said Greenland is vital to US security because of its strategic location and large mineral deposits, and has not ruled out using force to take it. European nations this week sent military personnel to the island at Denmark's request.

"These Countries, who are playing this very dangerous game, have put a level of risk in play that is not tenable or sustainable," Trump wrote.

"The United States of America is immediately open to negotiation with Denmark and/or any of these Countries that have put so much at risk, despite all that we have done for them, including maximum protection, over so many decades," he said.

Protesters in Denmark support Greenland after Trump's takeover threat

Protesters in Denmark and Greenland demonstrated on Saturday against Trump's demands and called for the territory to be left to determine its own future.

The countries named by Trump on Saturday have backed Denmark, warning that the US military seizure of a territory in NATO could collapse the military alliance that Washington leads. After the US president's social media post, Norway's top diplomat reiterated support for Denmark and said tariffs should not be part of Greenland discussions.

"There is broad agreement within NATO on the need to strengthen security in the Arctic, including in Greenland," Norway's Foreign Minister Espen Barth Eide said in a statement. "We do not think the question of tariffs belongs in this context."

Trump had floated the idea of tariffs over Greenland on Friday, without citing a legal basis for doing so.

TRADE DEALS UNDER THREAT?

Saturday's threat could derail tentative deals Trump struck last year with the European Union and Great Britain. The deals included baseline levies of 15% on imports from Europe and 10% on most British goods.

Europeans send troops to Greenland as Trump presses claim

Tariffs have become the US president's weapon of choice in seeking to compel American adversaries and allies alike to meet his strategic and economic demands.

Trump said this week he would put 25% tariffs on any country trading with Iran as that country suppressed anti-government protests, though there has been no official documentation from the White House of the policy on its website, nor information about the legal authority Trump would use.

The US Supreme Court has heard arguments on the legality of Trump's sweeping tariffs, and any decision by the top US judicial body would have major implications on the global economy and US presidential powers.

Citing threats from Russia and China, Trump has repeatedly insisted he will settle for nothing less than ownership of Greenland, an autonomous territory of Denmark. Leaders of both Denmark and Greenland have insisted the island is not for sale and does not want to be part of the United States.

Danish and other European officials have pointed out that as Greenland is part of NATO, it is already covered by the alliance's Article 5 collective security pact.

The US already has a military base, Pituffik Space Base, in Greenland, with around 200 troops, and can deploy as many more forces as it wants under a 1951 agreement.

That has led many European officials to conclude that Trump is motivated more by a desire to expand US territory than security concerns.

Advanced Chemical Industries (ACI) PLC, one of the largest conglomerates in Bangladesh, is set to expand its business footprint into the semiconductor and property sectors.

To operate in these new segments, the ACI board has decided to form two new subsidiaries – ACI Semiconductor Limited and ACI Properties Limited – at a board of directors' meeting held on Thursday.

An official of ACI told TBS, "We are hoping for bright prospects in both business segments in the future, which is why the management has decided to enter these segments by forming two subsidiaries of ACI PLC."

ACI Semiconductor Limited will have an authorised capital of Tk100 crore and a paid-up capital of Tk10 crore.

In the company, ACI will own 85% shares, which is subject to the approval of the concerned authority.

ACI Properties Limited will have an authorised capital of Tk100 crore and paid-up capital of Tk10 crore. In the company, ACI will hold 85% shares.

The official said the new business segment will enhance ACI's business portfolio.

According to its latest annual report for the 2024-25 fiscal year, ACI owns 17 subsidiaries and five joint ventures and associate companies operating across the country through its five diversified strategic business units – healthcare, consumer brands, agribusiness, motors and retail chains.

Its healthcare division delivers innovative and pharmaceutical products, the consumer brands division with its toiletries, home care, hygiene, electrical, salt, flour, foods, rice, edible oil, paints and international businesses.

ACI's agribusiness arm is the country's largest integrated platform in agriculture, livestock and fisheries, while ACI Motors is a leading player in farm mechanisation, motorcycles, commercial vehicles and construction equipment.

The retail chain division operates Shwapno, the largest retail network in Bangladesh, with more than 683 outlets nationwide, including 220 newly opened stores, serving over 1,00,000 customers daily.

ACI traces its origins to Imperial Chemical Industries, a British multinational that established operations in then East Pakistan. Following Bangladesh's independence, the business became ICI Bangladesh Manufacturers Limited before being acquired by its management in 1992 and renamed Advanced Chemical Industries (ACI) PLC.

Financial performance

For the financial year ended on 30 June 2025, ACI reported a marked performance improvement, with its consolidated loss narrowing significantly. The group posted a consolidated loss of Tk41.91 crore, or Tk7.40 per share, compared with Tk128.47 crore and Tk15.88 per share in the previous year.

Its consolidated revenue for FY25 stood at Tk13,790 crore, up from Tk12,431 crore in the previous fiscal year.

ACI's management attributed the improvement in profitability to steady revenue growth and stronger cost control.

During the year, the company achieved a 10.93% increase in consolidated revenue and a 15.42% rise in gross profit. The growth in gross profit outpaced operating expense growth, leading to higher operating profit despite challenging market conditions.

However, the company noted that higher borrowing costs partially offset the gains. The cost of borrowings increased during the year, driven by rising interest rates and additional funding requirements for working capital and strategic investments to support business expansion.

ACI's 25% cash dividend was approved by the shareholders in the annual general meeting (AGM) held on 28 December 2025.

In the first quarter of the current fiscal year, ACI reported a consolidated profit of Tk6.32 crore with an earnings per share (EPS) of Tk0.39, which was a consolidated loss of Tk46.91 crore and loss per share of Tk4.82 in the same time of the previous fiscal year.

Its consolidated revenue surged to Tk3,696 crore from Tk2,971 crore in Q1 of FY25.

The group achieved a 24.40% revenue growth, which was contributed to by a number of businesses as demonstrated in consolidated operating segments.

The Central Counterparty Bangladesh PLC (CCBL) was envisioned as the crown jewel of the capital market – a sophisticated, independent entity designed to modernise the clearing and settlement system, ensuring transparency and enabling the high-volume trading characteristic of advanced global bourses.

Incorporated in 2019 with significant fanfare, it was meant to segregate the settlement process from the stock exchanges, thereby reducing systemic risk.

Now, nearly seven years after its inception, the institution has transformed from a beacon of reform into a stagnant "white elephant," described by market participants as a costly burden that has failed to execute even its most basic functions.

Despite a substantial paid-up capital of Tk300 crore, the company has yet to begin operations. It remains trapped in perpetual inertia, lacking both the necessary software to run a clearing system and the mandatory registration from the Bangladesh Securities and Exchange Commission (BSEC) to conduct core business.

This failure has directly affected the Dhaka Stock Exchange (DSE), which continues to struggle under an aging settlement framework, preventing the market from achieving the speed, transparency, and transaction volume required for a modern economy.

Capital in limbo

Financial data reveals that CCBL has essentially operated as a fund management firm rather than a clearing house. Its office expenses are met through interest income from fixed deposit receipts (FDRs). The company maintains roughly Tk281 crore in FDRs across 14 banks. Alarmingly, Tk20 crore of this capital is held in the non-viable Exim Bank, alongside an additional Tk20 crore investment in Exim Bank bonds.

This exposure to a struggling financial institution has raised serious questions about the fiduciary responsibility of CCBL's management and board, according to market insiders.

Governance in Question

The governance structure of CCBL has become a subject of ridicule among market stakeholders. The company currently has a top-heavy board of 10 members, yet actual management is handled by a skeleton crew of only four officers.

Mominul Islam, chairman of the DSE, told The Business Standard that CCBL was established with what he calls "non-practical ambition." He said that since its 2019 incorporation, the company has remained non-functional, prompting DSE shareholders to fundamentally question its continued existence. As a primary investor, the DSE is no longer willing to wait for a miracle.

DSE voices frustration

To address these grievances, DSE leadership recently met with Anisuzzaman Chowdhury, special assistant to the chief adviser and chairman of the committee formed to strengthen the capital market. High-level government officials and BSEC representatives were present, where the DSE formally raised concerns regarding CCBL's inactivity.

According to Mominul, the government has requested precise recommendations on the entity's future. In response, the DSE is seeking legal counsel to determine whether the current CCBL structure is salvageable or has become a redundant obstacle.

Mominul further criticised the flawed process through which CCBL was created, comparing it unfavourably to international models.

He said in Sri Lanka, a clearing and settlement company was formed under the stock exchange's umbrella for an initial three-year period to ensure functionality before gaining independence. In Bangladesh, however, CCBL was pushed into independence without a functional foundation, resulting in unnecessary costs and a complete lack of progress.

Flawed design

The sentiment is echoed by Minhaz Mannan Emon, a shareholder director of the DSE, who argues that CCBL was designed incorrectly from the start. He said the board was populated by independent directors who lacked the technical expertise to run a highly specialised clearing and settlement business. This deficiency, he contends, is the primary reason CCBL could not secure regulatory registration in seven years.

Emon highlighted that the DSE invested Tk135 crore in the entity – money effectively belonging to brokerage houses. "Had this capital remained as an FDR under the DSE's control, it would have generated over Tk100 crore in interest over the last seven years. Instead, the DSE has watched its investment erode in a non-functional venture."

Stakeholders demand action

Frustration is compounded by CCBL management's failure to submit a viable action plan when requested by the BSEC last year. Market leaders like Emon now believe the DSE is more capable of running the clearing and settlement business independently. Calls for winding up CCBL are growing louder, as stakeholders refuse to continue "dumping money" into an institution lacking a roadmap.

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), said the 250 members of the DSE demanded full ownership of CCBL during the last annual general meeting.

In a formal letter, the brokers argued for a drastic reduction in CCBL's paid-up capital, calling the current Tk300 crore an excessive waste.

The DBA also called for immediate separation of management from the board and the recruitment of qualified professionals to replace the "ridiculous" setup of ten directors overseeing four employees.

Suspicious procurement

Adding to the controversy are allegations of suspicious procurement decisions. Sources indicate that a previous board planned to purchase clearing software from Tata Consultancy Services Limited (TCS) for a staggering $12 million.

The DSE raised concerns that the price was significantly above the market rate and posed potential security vulnerabilities to the country's critical technology infrastructure. The BSEC intervened to halt the procurement, yet the incident left lingering doubts about the entity's past decisions.

Ownership concerns

The ownership structure is also under scrutiny. While the DSE, Chittagong Stock Exchange (CSE), and Central Depository Bangladesh Limited (CDBL) hold the majority of shares, a significant portion is distributed among various banks, including National Bank, NCC Bank, and others.

Among these, Social Islami Bank and Global Islami Bank became non-viable due to massive irregularities and have since merged into Sammilito Bank. Market participants question why these banks, many with their own governance issues, were given stakes in a critical market utility like CCBL.

CCBL officials declined to comment to The Business Standard.

Lease term and settling loans have emerged as challenges centring the shifting the authority of Savar Tannery Industrial Estate to the Bangladesh Export Processing Zones Authority (Bepza) from the Bangladesh Small and Cottage Industries Corporation (Bscic) over compliance.

The barriers include the lease term of land under the Bepza, how the loans taken from various banks and financial institutions during the Bscic period be settled, and how new charges are determined for the operation of the Central Effluent Treatment Plant (CETP).

Stakeholders involved in the industry said that several tannery owners in Savar have huge outstanding debts, amounting one thousand to one and a half thousand crore taka.

Before handing over to the industrial park Bepza, the tannery owners demanded special rescheduling benefits, including waiver of interest on these loans.

Ashik Chowdhury, executive chairman of Bangladesh Economic Zones Authority (Beza) and the Bangladesh Investment Development Authority (Bida), told The Business Standard, "A roadmap for the Savar Leather Industrial City has been prepared and submitted to the Ministry of Industries after discussions with stakeholders. Now, the Ministry of Industries will make the final decision on this matter."

Recently, the high-powered committee, formed by the government to prepare a roadmap regarding the control of the industrial park, has submitted a report with some recommendations.

The Savar Industrial Park was developed on 199.40 acres of land as part of a government initiative to relocate tanneries from Hazaribagh and curb environmental pollution, setting up a CETP on 17.30-acre of land with sewage treatment plants and dumping yards to treat 25,000 cubic metres of waste.

The construction work of the project was scheduled to be completed in 2005 after beginning two years back. However, the deadline was extended 12 times, and costs increased from Tk175 crore to Tk1,015 crore before it was formally completed in 2021.

According to sources at the government-formed committee, the CETP has been unable to treat more than 15,000 cubic metres of effluent per day due to shortages of skilled personnel and technical expertise. Solid waste management is another major concern, with large volumes of leather waste contributing to environmental pollution and loss of potential economic value.

To address these issues, the committee headed by Major General (retd) Md Nazrul Islam, executive member of Bepza, was formed in August last year.

Speaking to TBS, he said the most critical issue is the heavy debt burden on tannery units as many operators borrowed heavily but failed to achieve viable production, raising difficult questions about how the government should deal with liabilities of non-operational units.

Highlighting the importance of a strong and effective management structure, he said that a strong body is badly needed to govern such the estate.

Acknowledging complexities in completing the process, a committee member said balancing the interests of tannery owners, finished leather producers, and regulatory bodies are challenging, particularly given the unresolved debt and liability issues.

Leather Development Forum (LDF) Coordinator Taherul Islam said the Bepza management could significantly increase effluent treatment costs, potentially raising CETP charges from the current Tk40–60 per cubic metre to more than Tk200 per cubic metre.

Such an increase, he warned, would be commercially unviable for most tannery operators and highlighted legal complications arising from differences in land-leasing policies.

While Bscic provides 99-year lease deeds, Bepza generally offers 30-year rental agreements, which could create contractual and legal hurdles during any transition, he said.

Ferdaus Ara Begum, chief executive officer of Business Initiative Leading Development (BUILD), described the process as a positive step, citing Bepza's track record in managing export processing zones in Dhaka, Cumilla, and other regions.

She said Bepza is widely regarded as one of Bangladesh's most successful institutions, particularly in operating CETPs, and its experience could improve effluent management at Savar.

However, the BUILD chief executive cautioned that several structural and contractual issues need to be resolved.

Tannery workers decry wage non-implementation a year after declaration

Bscic Chairman Md Saiful Islam said the estate will be governed according to government decisions based on the committee's recommendations.

Md. Shakawat Ullah, senior vice chairman of the Bangladesh Tanners Association (BTA), told TBS that tannery owners have taken a 99-year lease from the BSCIC to construct facilities, and currently, about 141 units are in production there.

"During a discussion with us, it was informed that the industrial city will be considered a specialised industrial area and the industrial units will operate under the existing rules and regulations of Bscic. However, matters such as CETP and waste management may be handled through separate arrangements, for which a prescribed fee will be collected from the industrial owners," he claimed.

With the transfer of management, clarity is needed on whether this supply system, NBR-related issues, he said.

Regarding the loan-related challenges, Shakwat said that since 2017, many tannery owners have been unable to run their businesses normally, causing a huge burden of loans and interest.

He said that these issues have also been included in the set of recommendations and that later, discussions with the Ministry of Finance could be held to find solutions.

Oil prices settled higher on Friday as some investors covered short positions ahead of the three-day Martin Luther King holiday weekend in the US and lingering worries about a possible US military strike against Iran.

Brent crude settled at $64.13 a barrel up 37 cents or 0.58 percent. US West Texas Intermediate finished at $59.44 a barrel up 25 cents, or 0.42 percent.

Most of Friday’s gains seemed to be due to buying supply ahead of the long weekend, said John Kilduff, partner with Again Capital LLC.

“With that carrier strike group making the move to the (Persian) Gulf, it doesn’t seem likely anything will happen soon,” Flynn said.

The US Navy’s aircraft carrier USS Abraham Lincoln was expected to arrive in the Persian Gulf next week after operating in the South China Sea.

Weighing against those fears are potential supply increases from Venezuela, said Phil Flynn, senior analyst with Price Futures Group.

“The supply from Venezuela has not become the tidal wave that was expected,” Flynn said. “Buying today seems to be people not wanting to be caught short over the long weekend.”

Both benchmarks hit multi-month highs this week after protests flared up in Iran and US President Donald Trump signalled the potential for military strikes, but lost over 4 percent on Thursday as Trump said Tehran’s crackdown on the protesters was easing, allaying concerns of possible military action that could disrupt oil supplies.

“Above all, there are worries about a possible blockade of the Strait of Hormuz by Iran in the event of an escalation, through which around a quarter of seaborne oil supplies flow,” Commerzbank analysts said in a note.

“Should there be signs of a sustained easing on this front, developments in Venezuela are likely to return to the spotlight, with oil that was recently sanctioned or blocked gradually flowing onto the world market.”

Analysts expect higher supply this year, potentially creating a ceiling for the geopolitical risk premium on prices.

“Despite the steady drumbeat of geopolitical risks and macro speculation, the underlying balance still points to ample supply,” said Phillip Nova analyst Priyanka Sachdeva.

“Unless we see a genuine revival in Chinese demand or a meaningful bottleneck in physical barrel flows, oil looks range-bound, with Brent broadly hovering between $57 and $67.”

Mining bosses like BHP’s Mike Henry should, in theory, be digging right now. Copper prices have surged 50 percent over the past year, topping $13,000 per metric ton on the London Metal Exchange on Thursday — well above the $11,000 mark that typically justifies constructing new mines. The catch? Soaring prices rarely stick.

Much of copper’s recent record rally reflects temporary factors. Traders are stockpiling ahead of potential US tariffs due in June, while top producers such as Rio Tinto and Freeport-McMoRan have cut their production forecasts because of idiosyncratic problems at key sites. The resulting squeeze has proved enough to drive short-term prices higher, but it may not last. Richer margins encourage more collection and processing of recycled copper, boosting supply over time. Tariff fears also cut both ways: if US President Donald Trump backs off, prices could tumble fast.

Questionable demand is another reason to think prices may fall. China still consumes roughly half of global copper, but the mix of uses is changing. Clean energy and electric vehicles are gaining share: Wood Mackenzie and Bernstein analysis see them making up 12 percent and 9 perecent of global demand, respectively, by 2030, while traditional sources of demand like construction lose steam. The problem is that the newer Chinese sectors remain exposed to policy shifts, implying a slowdown if Beijing shifts its priorities or successfully ends the clean-car sector’s chronic overcapacity. Globally, a much-heralded data centre boom may only help a little: the sector will account for just 1 percent of copper demand by 2030, according to Wood Mackenzie.

That uncertainty helps explain why miners like Anglo American and Teck Resources, or Glencore and Rio Tinto, are chasing M&A instead of breaking ground on new copper sites. The world needs a new supply, but the economics are tight. To make developing a mine economically sustainable, copper prices would have to stay at $11,000, according to consultant Wood Mackenzie. Price forecasts by Morgan Stanley suggest that between now and 2030 it will average around $10,700.

This would leave no room for miners to make a profit on new sites. And the real breakeven number may be higher after factoring in other challenges like securing water and labour, as well as possible permitting delays that can stretch over a decade, according to Morgan Stanley strategist Amy Gower.

Meanwhile, Wood Mackenzie estimates that meeting forecast 2035 demand will require over $210 billion in investment. Yet total capital investment in copper mining from 2019 to 2025 amounted to only around $76 billion. About half of that came from Chinese miners, followed by Russians.

There’s a geographic shift happening, too. The next wave of supply is moving beyond Latin America and Central Africa into regions like Central Asia, where countries such as Kazakhstan are closer to Beijing. For global miners, record prices are welcome. But in copper, that’s not always enough to justify putting a shovel in the ground.

Three-month forward copper prices on the London Metal Exchange reached a record $13,310 per metric ton on January 15.

The country’s ready-made garment (RMG) exports to the European Union (EU) grew 7.65 percent to €18.05 billion (around $20 billion) during the January-November period of last year, compared with the same period in 2024, according to Eurostat, the EU’s official statistical office.

The rise follows a 15 percent increase in shipments to the United States, Bangladesh’s single largest market, during January-October last year amid the reciprocal tariffs.

The new US duties reshaped the apparel trade in the South Asian region, prompting countries with higher US tariffs to divert a large portion of shipments to Europe, often at more competitive prices. This shift intensified competition in the European garment market.

Despite the year-on-year gain, exports to the EU fell 10.87 percent month-on-month to €1.37 billion in November 2025 compared with November 2024. Eurostat data showed that while unit prices for garments fell 3.25 percent, export volumes rose 11.26 percent. Over the 12 months from November 2024, unit prices dropped 12.27 percent.

Bangladesh, the second-largest garment exporter to the EU, is narrowing the gap with China, the world’s largest exporter.

China shipped €24.42 billion worth of garments to the EU in the January-November period last year, up 6.55 percent year-on-year.

In total, the 27 EU member states imported a total of €82.94 billion worth of garments in the first 11 months of 2025, a 3.93 percent increase from the previous year.

Among Bangladesh’s competitors, Turkey’s exports fell 11.31 percent to €7.65 billion, India’s rose 8.31 percent to €4.24 billion, Cambodia’s grew 15.21 percent to €4.14 billion, and Vietnam’s increased 10.10 percent to €4.01 billion.

Pakistan’s shipments rose 10.46 percent to €3.54 billion, Morocco’s fell 0.18 percent to €2.52 billion, Sri Lanka’s grew 6.43 percent to €1.25 billion, and Indonesia’s rose 3.30 percent to €0.90 billion, according to data.

Local exporters have urged the government to intensify negotiations with the EU to secure GSP Plus status. Bangladesh’s current Generalised Scheme of Preferences (GSP) benefits under the Everything but Arms (EBA) initiative will expire in 2029.

The country is set to graduate from least developed country (LDC) status to a developing nation on November 24. The EU will maintain current GSP benefits for a transitional period of three years.

To qualify for GSP Plus, Bangladesh must comply with 32 international conventions covering human rights, labour standards, environmental protection, and good governance. GSP Plus would guarantee duty-free access to the EU market after graduation. Without it, Bangladesh could face tariffs of over 12 percent, potentially reducing competitiveness.

Studies suggest losing GSP Plus could cost Bangladesh roughly 14 percent of its exports in a year, equivalent to $8 billion. Currently, 73 percent of the country’s export earnings rely on GSP-related trade facilities, and Bangladesh alone enjoys 67 percent of the trade benefits available to all 44 LDCs.

Oil prices plunged on Thursday after fears over instability in Iran were eased by comments from US President Donald Trump.

West Texas Intermediate dropped 3.0 percent to $60.16 per barrel while Brent crude was down 2.93 percent to $64.57, after Trump said he had been told the killings of protesters in Iran had been halted.

In a surprise announcement at the White House, the US president added that he would "watch it and see" about threatened military action.

"They've said the killing has stopped and the executions won't take place -- there were supposed to be a lot of executions today and that the executions won't take place -- and we're going to find out," he said.

Trump had repeatedly talked in recent days about coming to the aid of the Iranian people over a crackdown on protests that rights groups say has left at least 3,428 people dead.

Concern that the situation could restrict supplies of crude had caused oil prices to rise around 1.5 percent on Wednesday.

"Oil prices dropped... on comments from US President Donald Trump that Iran would refrain from any further killing of protesters, watering down fears of a looming supply shock in energy markets," said Kyle Rodda of Capital.com.

Iran makes up three percent of global oil production, analyst Michael Wan of financial group MUFG noted this week.

Wan said Thursday that Trump's latest comments "come even as the United States has redeployed some personnel in Qatar and other American bases from ongoing geopolitical tensions and possible Iranian threats to target those locations".

Zant Accessories Limited has signed a land lease agreement with the Bangladesh Economic Zones Authority (BEZA) to produce polyurethane and polyethylene foam at the National Special Economic Zone (NSEZ).

The agreement was signed today (14 January) at the BEZA office, said a press release.

Under the agreement, the company will set up an export-oriented industrial unit on five acres of land at the NSEZ, with an investment of around Tk80 crore. Zant Accessories plans to start commercial production in May 2027.

In the press release, BEZA said the proposed factory would use comparatively less water and electricity and would not require gas. The authority said the project would be export-oriented and in line with environment-friendly industrial development.

Besides polyurethane and polyethylene foam, the factory will also produce recycled foam, mattresses, pillows, comforters and shoe insoles. These products are mainly used in the furniture, home textile, footwear, automobile and packaging industries and are intended for export.

About 90% of the raw materials required for production will be imported from China, South Korea, the United Arab Emirates and Malaysia, according to the company. Zant Accessories Limited currently operates another factory at the Karnaphuli Export Processing Zone.

Saleh Ahmed, executive member (investment development) of BEZA, said the investment by Zant Accessories Limited at the NSEZ was a positive example of export-oriented industrial growth. "Such projects could encourage more local and foreign investors to invest in the zone," he said.

Zant Accessories Limited said the project would focus on sustainable production, environmental protection and skill development. The company also said it expects the project to contribute to foreign exchange earnings by maintaining international production standards.

The land lease agreement was signed on behalf of BEZA by Executive Member (Investment Development) Saleh Ahmed, while Zant Accessories Limited was represented by its Chairman Md Tofazzal Hossain.

According to BEZA, around 17 industrial units are currently operating at the NSEZ, while another 24 units are under construction. The zone is being developed with industrial facilities alongside urban services, infrastructure and sustainable utility systems.