The Bangladesh Securities and Exchange Commission (BSEC) has blamed merchant banks for the complete absence of initial public offerings (IPOs) over the past one and a half years, saying no IPO could be approved because no applications were submitted during the period.

Speaking at a press conference today (14 January), BSEC Director and Spokesperson Mohammad Abul Kalam said following the 2024 July uprising, merchant banks did not submit any IPO proposals, resulting in zero approvals.

Although the new commission had been working on revising the IPO rules after assuming office, the submission of IPO applications was never suspended, he added.

"Unfortunately, even under the previous rules, no company came forward to apply for an IPO after the mass uprising, despite having the opportunity to do so under the Public Issue Rules, 2015," he said. "As there were no applications, the question of verification or approval by the commission did not arise."

Placing responsibility squarely on merchant banks, the BSEC spokesperson said, "They could have submitted applications. Without applications, how can BSEC scrutinise or approve IPOs?"

He also noted that during the tenure of the previous commission, six IPO applications were under process, of which five were cancelled and one was withdrawn due to specific and serious deficiencies.

The press conference was organised at the BSEC multipurpose hall in Agargaon to explain various aspects of the Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules, 2025.

Explaining the new IPO rules, Abul Kalam said the revised framework was finalised after extensive consultations with stakeholders to make the IPO process more transparent, market-driven and accountable.

Since assuming office, the new commission has been actively working to bring quality and fundamentally strong companies to the capital market, he added.

He said discussions with issuers and issue managers revealed several structural problems – particularly related to pricing – that had discouraged good companies from going public. The lack of transparency and market alignment in IPO pricing had created a confidence gap among potential issuers.

To address this, the commission formed a task force and undertook reforms, including measures to ensure greater transparency and rationality in the pricing process. "With these reforms, pricing will no longer be a major barrier for companies seeking listing," he said.

The new rules strictly prohibit cartelisation, artificial price bidding and placing bids beyond actual financial capacity. Six specific conditions have been imposed to prevent such practices, along with penal provisions for violations.

"These restrictions are meant to ensure that entities without real capacity to purchase cannot intentionally quote inflated prices to mislead the market," he said, defining cartelisation as secret collusion aimed at manipulating prices for unfair gains.

He also said the commission received 170 opinions on the draft rules from general investors, institutional investors, and other market participants, including 38 detailed analytical submissions.

Each comment was reviewed in detail during commission meetings, and issues with broad stakeholder consensus were incorporated into the final rules, he added.

He also pointed out that the 2006 IPO rules lacked clarity on critical issues such as merit-based evaluation, physical inspection, stock exchange recommendations, and issuers' freedom to choose a stock exchange.

These gaps have now been addressed. The new rules also clarify that issuers are not required to apply to both stock exchanges and may choose either one, he said.

The press conference also noted that earlier fixed-price IPOs were often negotiated rather than market-driven, creating moral hazard. Under revised rules, the commission has restored a true book-building system, tightening and improving transparency in indicative price discovery.

Issuers and issue managers must now justify prices using valuation methods and validate them through roadshows, securing at least 40% demand from eligible investors.

The event was attended by BSEC Executive Director Hasan Mahmud, Additional Director Lutf ul Kabir, and Joint Director and Public Relations Officer Shariful Alam.

China on Wednesday reported a record trade surplus of nearly $1.2 trillion in 2025, led by booming exports to non-US markets as producers looked to build global scale to fend off sustained pressure from the Trump administration.

A push by policymakers for Chinese firms to diversify beyond the world's top consumer market by shifting focus to Southeast Asia, Africa and Latin America paid dividends, cushioning the economy against US tariffs and intensifying trade, technology and geopolitical frictions since President Donald Trump returned to the White House last year.

"China's economy remains extraordinarily competitive," said Fred Neumann, chief Asia economist at HSBC. "While this reflects gains in productivity and the rising technological sophistication of Chinese manufacturers, it is also due to weak domestic demand and attendant excess capacity."

Heading into 2026, the challenges for Beijing are aplenty, including deflecting concerns from an increasing number of global capitals about China's trade practices and overcapacity, as well as their overreliance on key Chinese products.

One of the key questions facing policymakers is for how long the $19 trillion economy can continue to counteract a property slump and sluggish domestic demand by shipping ever cheaper goods to other markets.

"Rising Chinese trade surpluses could raise tensions with trade partners, especially those reliant on manufacturing exports themselves," Neumann said.

The manufacturing juggernaut's full-year trade surplus came in at $1.189 trillion — a figure on par with the GDP of a top-20 economy globally like Saudi Arabia — customs data showed on Wednesday, having broken the trillion-dollar ceiling for the first time in November.

"With more diversified trading partners, (China's) ability to withstand risks has been significantly enhanced," Wang Jun, a vice minister at China's customs administration, said at a press briefing following the data release.

Outbound shipments from the world's second-biggest economy grew 6.6% in value terms year-on-year in December, compared with a 5.9% increase in November. Economists polled by Reuters had expected a 3.0% increase.

Imports were up 5.7%, after a 1.9% bump the month earlier and also beat a forecast for a 0.9% uptick.

"Strong export growth helps to mitigate the weak domestic demand," said Zhiwei Zhang, chief economist at Pinpoint Asset Management.

"Combined with the booming stock market and stable US-China relations, the government is likely to keep the macro policy stance unchanged at least in Q1."

Exports up as China set to gain more global share

China's yuan held steady following the upbeat data even as equity investors welcomed the forecast-beating numbers. The benchmark Shanghai Composite index and blue-chip CSI300 index both rose more than 1% in morning deals.

The Asian powerhouse economy's monthly trade surpluses exceeded $100 billion seven times last year, partially underpinned by a weakened yuan, up from just once in 2024, underscoring that Trump's actions have barely dented China's broader trade with the wider world even if he has curbed US-bound shipments.

Exports to the US slumped 20% in dollar terms in 2025, while imports from the world's top economy were down 14.6%. Chinese factories managed to make inroads in other markets, with exports to Africa jumping 25.8% and those to the ASEAN bloc of Southeast Asian nations up 13.4%. EU-bound shipments grew 8.4%.

China's rare-earth exports in 2025 surged to their highest level since at least 2014, even as Beijing began curbing shipments of several medium to heavy elements from April — a move analysts saw as an effort to showcase its leverage over Washington while negotiators wrangled over soybean purchases, a potential Boeing aircraft deal and the fate of TikTok's US operations.

The world's top agricultural importer purchased a record volume of soybeans in 2025, buoyed by a sharp increase in shipments from South America, with Chinese buyers holding off from US crops for much of the year as trade tensions lingered.

Trump factor still looms large

Economists expect China to continue gaining global market share this year, helped by Chinese firms setting up overseas production hubs that provide lower-tariff access to the United States and the European Union, as well as by strong demand for lower-grade chips and other electronics.

Beijing, however, has shown signs of recognising it must moderate its industrial largesse if it is to sustain its success, and address the image problem outsized exports are causing.

Last week, it scrapped subsidy-like export tax rebates for its solar industry, a long-standing point of friction with EU states.

The Trump challenge to China is not going away in a hurry either, analysts note, even as the US Supreme Court could rule against the president's tariff hikes later on Wednesday.

On Tuesday, Trump said he thinks China can open its markets to American goods, after threatening a day earlier to slap a 25% tariff on countries that trade with Iran, risking reopening old wounds with Beijing, Tehran's biggest trading partner.

"Trump's threat to impose a 25% tariff on countries doing business with Iran underscores the potential for renewed trade tensions between the US and China," said Zichun Huang, China economist at Capital Economics.

The global unemployment rate is expected to hold steady in 2026, the United Nations said Wednesday, but cautioned the labour market's seeming stability belies a dire shortage of decent jobs.

The UN's International Labour Organization said the global economy and labour market appeared to have weathered recent economic shocks better than expected.

But the ILO warned that efforts to improve global job quality had stagnated, leaving hundreds of millions of workers wallowing in poverty, even as trade uncertainty risked cutting into workers wages.

The global unemployment rate was estimated at 4.9 percent last year and the year before, and is now projected to remain at a similar level until 2027, a report from the UN labour agency said.

That amounts to 186 million people out of work this year, it said.
"Global labour markets look stable, but that stability is quite fragile," Caroline Fredrickson, head of the ILO's research department, told reporters, cautioning that the "apparent calm masks deeper and unresolved problems".

At a time when US President Donald Trump has slapped towering tariffs on friends and foes alike, the report cautioned that "disruptions caused by trade uncertainty, combined with ongoing long-term transformations in global trade, could significantly affect labour market outcomes".

Going forward, the ILO said its modelling suggested that a moderate increase in trade policy uncertainty "may reduce returns to labour and, as a consequence, real wages for both skilled and unskilled workers across all sectors", especially in Southeast Asia, Southern Asia and Europe.

The potential of trade to generate new employment opportunities was also being challenged by the ongoing disruptions, the report said, pointing out that 465 million jobs globally depended on foreign demand through exports of goods and services and related supply chains in 2024.

Another major concern highlighted by the ILO was the quality of jobs available.

"Resilient growth and stable unemployment figures should not distract us from the deeper reality: hundreds of millions of workers remain trapped in poverty, informality, and exclusion," ILO chief Gilbert Houngbo said in a statement.

Nearly 300 million workers continue to live in extreme poverty, earning less than $3 a day, Wednesday's report found.

At the same time, some 2.1 billion workers are expected to hold informal jobs this year, with limited access to social protection, labour rights and job security.

Young people remain particularly vulnerable, with unemployment among 15- to 24-year-olds projected to reach 12.4 percent for 2025, with around 260 million young people not engaged in education, employment or training, ILO said.

It warned that artificial intelligence and automation could exacerbate challenges, particularly for educated young people in wealthier countries seeking their first high-skill jobs.

"While the full impact of AI on youth employment remains uncertain, its potential magnitude warrants close monitoring," the report said.

The ILO also highlighted "entrenched gender inequalities", pointing out that women still account for just two-fifths of global employment.

"Stable labour markets are not necessarily healthy," Fredrickson said, stressing the growing need for "domestic policy choices to strengthen decent work outcomes".

"Without decisive action, today's stability risks giving way to deeper inequalities."

High-end department store conglomerate Saks Global filed for bankruptcy protection late on Tuesday in one of the largest retail collapses since the pandemic, barely a year after a deal that brought Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus under the same roof.

The move cast uncertainty over the future of US luxury fashion, though the retailer said early on Wednesday its stores would remain open for now after it finalized a $1.75 billion financing package and appointed a new chief executive.

Former CEO of Neiman Marcus department store chain Geoffroy van Raemdonck will replace Richard Baker, who was the architect of the acquisition strategy that saddled Saks Global with debt.

The company also appointed former Neiman Marcus executives Darcy Penick and Lana Todorovich as chief commercial officer and chief of global brand partnerships at Saks Global, respectively.

Saks Global estimated in documents filed in US Bankruptcy Court in Houston, Texas, that its assets and liabilities were in a range of $1 billion to $10 billion.

The court process is meant to give the luxury retailer room to negotiate a debt restructuring with creditors or find a new owner. Failing that, the company may be forced to shutter.

A retailer long loved by the rich and famous, from Gary Cooper to Grace Kelly, Saks fell on hard times after the COVID pandemic, as competition from online outlets rose, and brands started selling more items through their own stores.

The original Saks Fifth Avenue store, known for carrying exclusive brands like Chanel, Cucinelli and Burberry and its Christmas light shows, was opened by retail pioneer Andrew Saks in 1867.

Financing deal

The new financing deal would provide an immediate cash infusion of $1 billion through a debtor-in-possession loan from an investor group, Saks Global said. Reuters earlier reported the loan was led by Pentwater Capital Management in Naples, Florida, and Boston-based Bracebridge Capital.

Financing worth $240 million would be available through an asset-backed loan provided by the company's asset-based lenders, according to the company.

The luxury retailer will have access to $500 million of financing from the investor group once it successfully exits bankruptcy protection, expected later this year, Saks Global said.

It asked the court to delay the submission of the group's financial statements by 45 days to 13 March 2026.

Several luxury brands were among the unsecured creditors, led by Chanel, with about $136 million, and Gucci owner Kering with $60 million, the court filing said. The world's biggest luxury conglomerate, LVMH, was listed as an unsecured creditor at $26 million. In total, Saks Global estimated there were between 10,001 and 25,000 creditors.

Paris-based Kering, which also owns such brands as Yves Saint Laurent and Balenciaga, declined to comment.

Chanel, LVMH and Richemont did not respond to requests for comment.

In 2024, Baker masterminded the takeover of Neiman Marcus by Canada's Hudson's Bay Co, which had owned Saks since 2013, and later spun off the US luxury assets to create Saks Global, bringing together three names that have defined American high fashion for over a century.

That $2.7 billion deal was built on about $2 billion in debt financing and equity contributions from investors including Amazon, Salesforce and Authentic Brands, which were listed in the court filing as equity investors in Saks Global.

Neiman Marcus deal added debt

The Neiman Marcus deal was designed to create a luxury powerhouse, but it saddled Saks Global with debt at a time when global luxury sales were slowing.

Saks Global struggled last year to pay vendors, who began withholding inventory.

The thinly stocked shelves may have driven shoppers away to rivals like Bloomingdale's, which reported strong sales in 2025, compounding pressure on Saks Global.

"Rich people are still buying," Morningstar analyst David Swartz said last month, "just not so much at Saks."

Running out of cash, Saks Global last month sold the real estate of the Neiman Marcus Beverly Hills flagship store for an undisclosed amount. It had also been looking to sell a minority stake in exclusive department store Bergdorf Goodman to help cut debt.

On 30 December, it failed to make an interest payment of more than $100 million to bondholders.

Businesses feel unease and inflation frowns while some liquidity-squeezing moves have been in place for months.

The central bank, however, claims its contractionary monetary policy still looks accommodative in current context.

Officials and money-market analysts say the monetary policy is contractionary in terms of value due to higher policy rate but it is very much accommodative as far as the volume is concerned.

Apart from the regular liquidity-feeding instruments of the Bangladesh Bank (BB), the flow of subsidised credits or money injection through irregular arrangements keep rising on the market, which is contradictory to the spirit of contractionary monetary-policy stance taken for holding inflation in check.

As a matter of fact, the BB-guided tight monetary policy is not transmitting into the money market properly and not being able to contain the inflationary pressure at the expected level, which ultimately hurts common people through curtailing their purchasing power.

After the changeover in state power following the 2024 July-August mass uprising that toppled the Sheikh Hasina government, eminent economist Dr Ahsan H. Mansur took the central bank leadership and enhanced policy rate in quick successions by 150 basis points to 10 per cent from 8.50 per cent on October 22, 2024 to contain higher inflationary pressure as part of contractionary monetary policy.

The banking regulator still continues on the policy stance despite criticism from the business circles as the rate of inflation has yet to be brought down to the targeted level of 7.0 per cent.

Contractionary monetary policy is a central bank strategy to slow down an overheating economy and fight high inflation by reducing the money supply, thus making borrowing more expensive, and decreasing overall spending and investment.

But the reality here is different: the volume of quasi-fiscal activities by the BB through which commercial banks avail credits from the regulator at subsidised rates, ranging from 0.5 per cent to 5.0 per cent, is still quite large.

On the other hand, regular government borrowing from the central bank through using ways and means (maximum Tk 120 billion) and overdraft (maximum Tk 120 billion) goes on to operate some 119 accounts at 8.0 per cent and 9.0 per cent respectively, which is against the tight monetary policy stance.

Simultaneously, the central bank keeps injecting high-powered money in the form of assured repo (AR) against special bonds meant for settling accumulated arrears to independent power producers and fertiliser suppliers since February in 2024. Each month, the BB has provided AR facility worth over Tk 50 billion.

As such, the money supply to the market continues rising in recent months. According to the data of the BB, the volume of total money supply was Tk 21.68 trillion by end of July 2025 and the growth was 6.99 per cent from the corresponding period of last year.

Since then, an upturn has been observed in both volume and growth with the money supply rising to Tk 21.82 trillion (7.78-percent growth) and Tk 21.90 trillion (8.14-percent growth) last August and September respectively.

Former executive director (grade-1) of the Bangladesh Bank Dr Md. Ezazul Islam, who was leading the monetary policy department before his very recent joining Bangladesh Institute of Bank Management (BIBM) as its director-general, says there are two criteria through which monetary-policy stance can be judged whether it is contractionary or expansionary. One is quantity and another is price.

He says the central bank has long been pursuing monetary targeting for maintaining price stability but it did not work properly because of various factors, including instability in money demand and dominance of the fiscal policy.

"That's why the banking regulator switched to interest-rate targeting in place of monetary targeting in FY'24. Under this strategy, we raised the cost of funds to control the inflation," he told The Financial Express.

Since January last, the central banker mentions, the policy rate has become tight in real terms as the rate of inflation has been staying below the policy or repo rate.

Seeking anonymity, another BB official says the BB took some liquidity-squeezing steps to contain inflation by limiting the repo-backed borrowing facility to once a week from daily operations. The regulator also scrapped assured liquidity support (ALS) to limit money flow. Newspaper subscription service

"Despite the fact, the monetary policy is still accommodative due to growing fund flow through quasi-fiscal operations, government increased bank borrowing and other arrangements," the official told the FE about the balancing tricks.

The central banker mentions that the volume of quasi-fiscal activities through which banks avail funds at subsidised rates through refinancing schemes to support sectors like SMEs and agriculture stood at over Tk 330 billion.

On the other hand, the government recently revised its bank borrowing target to Tk 1.17 trillion from the initial target of Tk 1.04 trillion in the national budget for FY'26.

Assured repo or AR is another factor that is very contradictory to the spirit of tight monetary policy because the BB keeps injecting inflation-fueling high-powered money into the commercial banks for settling accumulated arrears to independent power producers and fertiliser suppliers, according to him.

The accumulated volume of AR-backed money rose to over Tk 550 billion now.

According to the data on reserve money, the growth of high-powered money had been positive since the policy rate was revised upward in October 2024 until September 2025 apart from last June's count (-0.11 per cent).

In fact, double-digit growth in reserve money was observed in three months (November, March and May last). It is another factor that indicates the monetary policy is still accommodative.

The current movement of the yield curve is another indication of the accommodative monetary policy because the yield on government securities normally goes up due to low fund supply in a tight monetary regime. But in Bangladesh, the yield is not moving up.

Professor of Economics at Independent University Bangladesh M. A. Taslim explains that as the money supply keeps increasing on the market in recent months, the monetary policy seems to be an accommodative one, not contractionary in nature.

The economist notes that the banking regulator has been continuing 'tight monetary policy stance' for months to contain higher inflationary burden. Despite the fact, the rate of inflation has yet to be brought down to the level expected.

On the other hand, the pressure from the business circles to cut down policy rate continues mounting to accelerate economic growth from prolonged sluggishness as the rate of poverty is on the upturn.

"If BB relaxes policy rate considering the economic growth, the inflation will not come down. I think BB is in double whammy. The situation is really tough," he says about a double bind the regulator is in.

According to the data with Bangladesh Bureau of Statistics (BBS), headline inflation reached 8.49 per cent in just-passed December, up from 8.29 per cent in November and October's count of 8.17 per cent.

Founding Chairman of Policy Exchange Bangladesh Dr M Masrur Reaz says the central bank keeps the value tight but continues pumping in large amounts of money through various instruments on the other hand.

"It (monetary policy) is contractionary in terms of price but very much accommodative in regards to quantity," he says.

The economist mentions that there is a revenue shortfall of Tk 240 billion in the first five months of this fiscal year (FY'26). So, it is assumed that the figure could cross Tk 500 billion by the end of the fiscal year.

As there is no sign that the revenue mobilisation would increase significantly under the current macroeconomic context, he predicts, the government will have no other option as it discourages budgetary supports from development partners but to rely on domestic bank borrowing.

"It means the money supply is expected to be increasing further in the coming days."

Former lead economist of World Bank's Dhaka office Dr Zahid Hussain finds quantitative easing in the monetary policy as the balance sheet of BB is expanded despite record rise in policy rate.

He mentions positive growth in the movements of reserve money through which the regulator injects high-powered money to the market amid higher policy-rate regime.

"Some months it is increasing, some months it is dropping, but the positive growth continues. As far as volume is concerned, the monetary policy is still accommodative," he concludes.

Contacted, BB deputy governor Dr Md. Habibur Rahman, the lead author of the Monetary Policy Statement (MPS), said the yield curve typically shifts upward in a tight monetary-policy regime. But the situation is completely different in Bangladesh. "It means the monetary policy is not tight enough," he added.

Bangladesh's economic growth gained momentum in the first quarter of the 2025-26 fiscal year, with point-to-point GDP growth at constant prices rising to 4.50%, up from 2.58% in the same period of the previous fiscal year.

According to provisional quarterly estimates released by the Bangladesh Bureau of Statistics (BBS) yesterday (12 January), overall GDP growth at constant prices stood at 3.72% in the 2024–25 fiscal year.

However, the BBS noted that there are some differences between the provisional annual GDP estimates for 2024-25 and the quarterly estimates. These discrepancies will be adjusted through benchmarking in line with internationally accepted methods once the final GDP figures for the fiscal year are determined.

Sector-wise data show a notable recovery in agriculture. In the first quarter of 2025-26, agricultural growth reached 2.30%, compared to negative growth of 0.60% in the same quarter of the previous year.

Growth in the industrial sector strengthened further, recording 6.97% in the first quarter of the current fiscal year, nearly double the 3.59% growth posted in the corresponding quarter of 2024-25.

The services sector also saw an upward trend, with growth rising to 3.67% in the first quarter of 2025-26 from 2.96% a year earlier. The improvement was driven by a gradual increase in domestic demand and business activity.

Bangladesh’s economy rebounded in the first quarter of the current fiscal year of 2025-26 due mainly to stronger agricultural and industrial production.

The overall output, or Gross Domestic Product (GDP), which measures the total value of goods and services produced in a given period grew by 4.50 percent in July-September, according to estimates from the Bangladesh Bureau of Statistics (BBS) released yesterday.

This rate is higher than the 2.58 percent quarterly growth a year earlier.

The industrial sector led the expansion of the economy, posting 6.97 percent growth in the first quarter of FY26. The latest industrial growth is almost double the 3.59 percent recorded during the same period last year, when production was hit hard by mass uprisings and labour unrest.

Factory floors this year were noticeably busier compared with the corresponding quarter.

Agriculture, the largest employer in the economy, expanded by 2.3 percent, recovering from losses caused by repeated floods in 2024. The services sector, the country’s second-largest employer, also grew during the first quarter.

“This is an encouraging sign,” said Prof Mustafizur Rahman, distinguished fellow at local think tank Centre for Policy Dialogue (CPD). “The growth shows signs of recovery as the difference from last year is high.”

Rahman, however, said that this improvement is based on a low growth base from last year. And the growth in the service sector is not big, while agricultural output depends on the weather.

“There is a challenge in the sustainability of the growth,” said the economist.

Although the performance in the industrial sector was strong, export-oriented industries did not do well in the second quarter of the current fiscal year, which could have a negative impact, said Rahman.

Besides, imports of machinery and raw materials for export-oriented industries have not increased despite revived imports of capital machinery. “So, we have to wait to see whether this is a full recovery of the economy or not,” he added.

Zahid Hussain, another noted economist, described the overall recovery as “modest” compared with Bangladesh’s historical growth.

He said, “In the overall growth rate, a large contribution came from the agricultural sector.” BBS data showed agricultural growth of 2.30 percent, up sharply from a negative 0.6 percent in the first quarter of the previous fiscal year.

Farming growth in the same quarter was also slight in 2023-24, at only 0.62 percent.

Last year, floods heavily affected Aus rice and Aman seedbeds, but this year production rebounded, said Hussain, a former lead economist at the World Bank’s Dhaka office.

Hussain said the sustainability of growth will depend on electricity supply and diesel availability.

According to him, while fuel imports are stable, electricity generation remains a concern. Investment remains lacklustre, and exports have slowed, adding to the challenges.

Historically, growth in the services sector ranges between 5 percent and 6 percent, higher than the current trend.

Disruptions from year-round street protests and a weak law and order situation have had a huge impact on services. High inflation has also reduced people’s purchasing power, limiting consumption of services, he added.

Headline inflation reached 8.49 percent in December, up from 8.29 percent in November and October’s 39-month low of 8.17 percent, according to BBS data.

AkijBashir Cables is introducing Bangladesh's first three-layer house wiring cable, which sets a new benchmark for insulation resistance, durability and long-term performance.

In an interview with The Business Standard, Khorshed Alam, chief operating officer of Akij Bashir Group, discusses the group's entry into Bangladesh's cable and wire market, outlining its investment rationale, growth ambitions and focus on safety, quality and local manufacturing. The interview was conducted by Abbas Uddin Noyon, chief reporter of TBS.

What motivated AkijBashir Group to enter the cable and electric wire industry at this point, and why did you choose Eminence Electric Wire & Cables Ltd for acquisition?

Bangladesh is at a stage where infrastructure development, urbanisation and industrial expansion are all accelerating simultaneously. Reliable power transmission and safe electrical connectivity have therefore become critical national needs. As a diversified industrial group, AkijBashir sees the cable and electric wire segment as strategically aligned with our long-term vision of supporting national development through essential manufacturing.

From a business-structure perspective, our building materials division already contributes more than 60% of the group's overall portfolio. Our strategic objective has been to expand this division further so that we can offer most, if not all, key construction-related products under one trusted umbrella. Entering the cable industry is a natural extension of that strategy.

In our market research, we also identified clear gaps. On one side, certain dominant players have created unhealthy market dynamics, while on the other, several suppliers struggle with consistency and reliable delivery. We felt there was room for a credible, quality-driven player with a strong commitment to standards and supply assurance. Eminence Electric Wire & Cables Ltd offered an established manufacturing base, skilled workforce, and a compliance-oriented culture, allowing us to scale quickly without compromising quality.

How do you assess the current size and future potential of Bangladesh's cable industry?

In volume terms, the cable industry is already a large market, roughly estimated at around Tk12,000 crore. The growth outlook is strong, supported by public infrastructure projects, real estate development, industrial expansion, and rising safety awareness among consumers.

We believe the industry can sustain annual growth of 10-15% over the next 10 to 15 years, barring short-term disruptions. Another important trend is the gradual replacement of substandard cables with certified, higher-quality products. There is also scope for import substitution as local manufacturers adopt better technology. With advanced production facilities and new features, we want to meet rising customer expectations and energise the market.

What are your short- and long-term strategic goals for this venture in terms of market position and branding?

In the short term, our priority is operational stability, ensuring consistent quality, reliable supply, and strong distribution across key domestic markets. We want the brand to stand for safety, reliability and value from the outset.

In the long term, our plan is to expand the product portfolio, invest in advanced manufacturing technology, and gradually explore export opportunities. Ultimately, our goal is to position AkijBashir Cables among the leading players in the national market, with a reputation comparable to top regional brands.

What level of investment has gone into acquisition and expansion, and how has it been financed?

The investment includes both the acquisition of Eminence Electric Wire & Cables Ltd and capital expenditure for modernisation, capacity expansion and quality assurance systems. While we are not disclosing exact figures at this stage, it represents a substantial long-term commitment.

The project has been primarily financed through AkijBashir Group's own funds, reflecting our strong balance sheet and confidence in the sector. We are also receiving support from our valued financial partner, Jamuna Bank.

What production capacity are you targeting initially, and how will you scale up?

Initially, we are targeting a capacity of around 300 tonnes of copper cables and 200 tonnes of aluminium cables. The facility has been designed with scalability in mind, allowing us to expand capacity in phases. In the near term, we aim to increase this to around 600 tonnes of copper and 300 tonnes of aluminium as demand grows, both domestically and potentially in export markets.

How many jobs has this venture created so far?

Employment generation is a key part of our contribution. With the launch of AkijBashir Cables and our three-layer cable technology, we have already created employment opportunities for more than 700 people across manufacturing, quality control, logistics and sales. Our nationwide distribution network also supports significant indirect employment across Bangladesh.

What distinguishes AkijBashir Cables from existing competitors?

The most important distinction is our focus on safety and quality. AkijBashir Cables is introducing Bangladesh's first three-layer house wiring cable, which sets a new benchmark for insulation resistance, durability and long-term performance. This structure significantly reduces the risk of short circuits and current leakage and can withstand temperatures of up to 105 degrees Celsius, features not commonly available in the local market.

We believe fire risk linked to electrical wiring is a serious concern. While cables are often blamed, the real issue lies in raw material purity, manufacturing standards, and proper application. We source copper from LME-approved suppliers with 99.9% purity and use high-grade PVC from authenticated sources. We are fully committed to maintaining international standards.

Can improved local manufacturing reduce dependence on imported cables for major projects?

In the initial phase, our focus is on domestic, industrial and communication cables, including underground applications as urbanisation increases. More specialised, high-technology cables required for mega projects will come in our second phase. However, our long-term vision is clearly to reduce import dependence by developing advanced local manufacturing capabilities.

Pricing is always a concern for consumers. How will you balance quality and affordability?

High-quality raw materials inevitably cost more. For example, sourcing copper from LME-approved suppliers can be 30-40% more expensive than non-certified alternatives. But this purity directly impacts safety and longevity.

That said, we are very conscious of market realities. Our pricing strategy will remain competitive and aligned with existing products, without compromising quality. We believe consumers are increasingly willing to pay a fair price for safety and reliability.

Where are your machinery and raw materials sourced from?

The factory we acquired was already well-equipped with world-class machinery sourced from Europe, Germany, China and India. For raw materials, copper will be sourced mainly from Singapore, while PVC will come from China and partly from India.

Who are your initial target customers?

Our primary focus is domestic wiring, followed by industrial and communication cables. Given AkijBashir Group's strong brand acceptance among general consumers, we see domestic cables as a natural starting point. Gradually, we will move into higher-voltage and specialised cable segments.

Foreign investors' trading activity on the Dhaka Stock Exchange (DSE) dropped sharply in 2025, with turnover falling to one of its lowest levels in recent years, reflecting cautious sentiment, year-end portfolio rebalancing and long-standing structural constraints in Bangladesh's capital market.

Data from the DSE and brokerage houses indicate that foreign turnover remained subdued throughout the year, deteriorating significantly towards the end.

Monthly foreign turnover stood at just $5 million as of 15 December, a steep decline compared to $30 million in October and $22 million in November. Earlier in the year, foreign activity showed intermittent strength, peaking at $41 million in May and $40 million in July, but those gains proved short-lived as global investors gradually reduced exposure.

December saw a pronounced sell-off in several heavyweight stocks, contributing to a sharp net decline in foreign holdings. According to the monthly shareholding report, foreign investors sold shares worth around Tk120 crore during the month, while purchases amounted to only about Tk2 crore, resulting in a significant net outflow. Most of the selling pressure was concentrated in a handful of large-cap stocks that traditionally attract foreign interest.

Summit Alliance Port experienced the largest reduction in foreign ownership, with holdings dropping by 3.68 percentage points, equivalent to roughly Tk38 crore. Grameenphone also saw foreign stakes fall by 0.07 percentage points, translating into sales of about Tk24 crore. City Bank recorded a notable decline of 0.64 percentage points, worth Tk25.22 crore, while Square Pharmaceuticals, BRAC Bank and Renata also witnessed moderate reductions in foreign shareholding.

Despite the broader trend of selling, a small number of companies recorded marginal increases in foreign stakes during December. These included Beximco Pharmaceuticals, Prime Bank, National Bank, Orion Infusion, LankaBangla Finance and Orion Pharma, although the absolute value of these increases remained modest and insufficient to offset overall outflows.

Market participants said the recent decline in foreign activity reflects a combination of stock-specific exits and routine portfolio adjustments rather than a fundamental loss of confidence in Bangladesh's equity market.

Norway's sovereign wealth fund, along with a limited number of UAE- and EU-based institutions, remains among the key foreign players active in the market, according to industry insiders.

A managing director of a leading brokerage firm said foreign investors continue to face constraints due to the limited scope for diversification. Bangladesh has a relatively small pool of investable large-cap stocks that meet the governance, liquidity and risk standards required by global institutional funds. As a result, even modest changes in allocation decisions can have an outsized impact on foreign turnover figures.

Another brokerage chief executive noted that December is traditionally a period of portfolio rebalancing, as foreign institutions prepare year-end financial statements and realign holdings in line with global asset allocation strategies. Such adjustments often lead to temporary outflows from frontier and emerging markets, particularly when investors seek to lock in profits or reduce exposure to perceived risks.

He added that foreign inflows could recover if the country's political and economic situation stabilises further in the coming months.

Analysts also pointed to structural challenges linked to global index inclusion. Many international funds track FTSE equity country benchmarks, and Bangladesh's partial exclusion from these indices continues to weigh on sustained foreign participation. The country was removed from FTSE indices following the imposition of floor prices on stock movements, which disrupted price discovery and liquidity.

Although the Bangladesh Securities and Exchange Commission has lifted most of those restrictions since early last year, floor prices remain in place for two companies, keeping them outside the FTSE universe.

Currently, total foreign investment in the DSE stands at around Tk13,000 crore, with only about 36% of listed companies having any foreign shareholding.

In its November 2025 review, MSCI made no changes to Bangladesh's market classification, while 42 DSE-listed companies remain included in the FTSE Frontier Index.

Bangladesh's current account balance deteriorated further in the first five months of the current fiscal year 2025-26, even though remittance inflows crossed $13 billion, due mainly to a widening trade deficit caused by higher imports and weak export growth.

According to the Balance of Payments (BOP) data released by the Bangladesh Bank today (13 January), the current account deficit stood at $696 million during July-November of FY26, compared to a deficit of $568 million in the same period of FY25.

Economists and central bank officials said the higher deficit reflects a sharp increase in imports, while exports failed to keep pace.

A senior Bangladesh Bank official said higher imports of crude petroleum, refined petroleum products, fertiliser and capital machinery were the main drivers of the import surge. Crude petroleum imports rose by 37%, petroleum oil imports by 14% and fertiliser imports jumped from $960 million last year to $1.73 billion this year. Capital machinery imports also increased by nearly 10%.

Bangladesh Bank data show that the trade deficit rose by 18.52% year-on-year to $9.40 billion in July-November FY26, up from $7.94 billion in the same period last year. Imports during the period increased by 6.10% to $27.60 billion, while exports grew by only 0.60% to $18.19 billion.

The current account is a key component of the BOP, capturing a country's net trade in goods and services, income from abroad and current transfers such as remittances. Analysts noted that while strong remittance inflows often cushion the current account, a large trade deficit can still push the balance into deeper negative territory.

In FY26's first five months, remittances were around $2 billion higher than in the same period last year. However, the trade deficit was roughly $1.5 billion wider than a year earlier, offsetting much of the remittance gain and worsening the current account position.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, told TBS, the deterioration was primarily driven by the trade deficit. "Imports have increased, which in itself is not bad for the economy, but exports have not grown accordingly. In fact, export growth has fallen to below 1%, which has widened the trade deficit and hit the current account," he said.

The economist added, "An increase in imports is not a bad thing for the economy; rather, it is a sign of a healthy economy. A decline in exports, however, is detrimental. Therefore, I believe it is essential to work on increasing the country's exports in the coming days."

Financial account in surplus

Despite the current account deficit, Bangladesh's financial account recorded a surplus of $1.23 billion in the first five months of FY26, a significant turnaround from a deficit of $1.01 billion in the same period last year. Economists attributed this improvement mainly to a surplus in trade credit and higher net aid inflows.

Trade credit stood at a surplus of $595 million during the period, compared to a deficit of $817 million a year earlier, while net aid inflows rose to $504 million from $269 million, marking an increase of more than 87% year-on-year.

Zahid Hussain said trade credit and net aid flows were the two key drivers behind the positive financial account. He noted that trade credit tends to turn negative when exports rise, but in the current context, weaker exports and higher deferred import payments have pushed it into surplus.

BOP remains positive

Thanks to the strong financial account surplus, Bangladesh's overall BOP recorded a surplus of $769 million in July-November FY26, compared to a deficit of $2.54 billion in the same period last year. Economists said the improvement highlights stronger external financing flows, even as pressures persist on the trade and current accounts.

However, analysts also pointed to a decline in short-term foreign borrowing by the private sector. According to economists, net repayments of short-term loans have increased as new borrowing has slowed, reflecting weak investment demand amid an economic slowdown.

Zahid Hussain said the fall in short-term borrowing does not indicate a lack of access to foreign credit, as reserves and dollar liquidity have improved and banks' credit lines have expanded. "Rather, it shows reduced demand for new loans due to sluggish private-sector investment," he said.

A commerce ministry report shows that under an Economic Partnership Agreement (EPA) with Japan, Bangladesh will initially benefit from duty-free access for a large number of products, but the balance will begin to shift in Japan's favour after six years.

Officials and experts acknowledge that there are revenue risks but also say phased duty reductions will limit the risks and give local industries time to strengthen.

They say the EPA will boost exports, attract investment, and support Bangladesh's development, while the agreement could also encourage other countries to pursue similar deals.

The commerce ministry report, a copy of which was obtained by The Business Standard, shows that when the agreement takes effect, 7,379 Bangladeshi products will receive duty-free access to the Japanese market, while 1,039 Japanese products will enjoy the same benefit in Bangladesh.

Although these figures initially favour Bangladesh, a further 2,702 Japanese products will gradually receive duty-free access to the Bangladeshi market within the next six to eight years.

At one stage, a total of 9,354 Japanese products will enter Bangladesh without tariffs, while 7,436 Bangladeshi products will enjoy duty-free access to the Japanese market.

Commerce Secretary Mahbubur Rahman said because duty reductions for various sectors are being phased in, it will take time for all Japanese products to gain tariff-free access.

"As a result, there is little risk of revenue loss or an oversupply of Japanese goods. By then, Bangladesh will have reached a competitive position in many sectors," he added.

He noted that Bangladesh must gradually adopt a lower import duty structure as most developed countries are reducing tariffs, leaving the country no alternative but to follow suit.

Mahbubur confirmed that the agreement will be signed on 6 February, with him and Commerce Adviser Sk Bashir Uddin expected to attend the signing ceremony in Tokyo.

However, a senior commerce ministry official, speaking on condition of anonymity, said there was uncertainty over signing the deal just five days before the national election.

Bangladesh's EPA with Japan could encourage other countries to engage similarly.
MA Razzaque, Chairman of Rapid

$248.34m revenue loss

The ministry report also estimates that Bangladesh could lose about $248.34 million a year in revenue if customs, supplementary, and regulatory duties on Japanese products were withdrawn.

At the same time, it warns that exports to Japan could fall by $250 million to $300 million after LDC graduation if an EPA is not signed and Bangladeshi goods face regular tariffs.

Most of the 1,039 Japanese products set to receive zero-duty access at the initial stage already enter Bangladesh at zero or 1% duty.

Good opportunity for RMG

At present, garments exported to Japan must meet double-stage transformation rules of origin, meaning at least two production stages must be completed in Bangladesh.

The report said once the EPA takes effect, Bangladeshi garments will be able to enter Japan from day one under single-stage transformation rules, requiring only one production stage in Bangladesh.

Due to phased process, there is little risk of revenue loss or an oversupply of Japanese goods.
Mahbubur Rahman, Commerce Secretary

Leather, agriculture, services

The report notes that 206 leather and leather goods products could later gain duty-free access to the Japanese market through further negotiations. However, the leather sector is considered highly sensitive by Japan and is not included in any of its free trade agreements or EPAs.

Most of Bangladesh's 1,259 agricultural products will not receive zero-duty access to Japan immediately after the deal is signed.

Under the WTO's sectoral classification, there are 155 service sectors. Under the EPA, Bangladesh will gain duty-free access for 120 service sectors in Japan, while Japan will receive the same benefit for 97 service sectors in Bangladesh.

Passenger cars

In the case of Japan's CKD (completely knocked-down) passenger cars, tariffs will be reduced gradually over 12 years before eventually allowing duty-free entry into the Bangladeshi market.

A senior commerce ministry official, speaking on condition of anonymity, said Japan had strongly pushed for immediate duty-free access for its cars, as Bangladesh is a major market for Japanese vehicles.

However, Bangladesh has not agreed to the proposal due to revenue concerns. Instead, Dhaka has offered Japan extended MFN status for vehicle exports, meaning that if Bangladesh grants duty-free access to cars from any other country, Japanese cars will automatically receive the same benefit, the official added.

What experts say

Mostafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, said the deal should not be judged solely on goods trade; services, investment, technology, and other factors are equally important.

"Although Japan will grant immediate zero-duty access for 7,379 Bangladeshi products, only a few are currently exported. To benefit fully, Bangladesh must boost supply capacity, diversify exports, and strengthen competitiveness," he said.

He explained that tariff concessions for Japanese products pose little threat to local industries.

"No Bangladeshi sectors face direct competition from imports from Japan. On the contrary, products currently imported under tariffs from other markets could, in future, enter duty-free from Japan, benefiting consumers and producers," he added.

The economist added that attracting Japanese investment is crucial, requiring a better business climate, one-stop services, reliable gas supply, improved port facilities, and shorter lead times.

Mostafizur also stressed focusing on services exports, including training nurses and medical technicians to meet Japan's demand for skilled workers.

MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), told TBS that the EPA with Japan has several positive aspects.

"Bangladesh exports the most RMG to Japan, so even after LDC graduation, these products will enter Japan duty-free. Without an EPA, Bangladeshi garments would face a 10% tariff after graduation," he said.

He added that Japan is a developed country and a globally recognised negotiator. "Bangladesh's EPA with Japan could encourage other countries to engage similarly."

Razzaque further said Japan is also a major investor, and with its push to reduce dependence on China, Bangladesh could emerge as a new destination for Japanese investment.

However, Razzaque cautioned about risks, noting that revenue loss is the main concern.

"The more Japanese products enter Bangladesh duty-free, the higher the risk to revenue. Local industries must also be strengthened. Moreover, if the agreement is not properly implemented, it could send a negative signal internationally," he added.

Former Tariff Commission member Mostafa Abid Khan said signing an EPA with Japan was a positive development, but it was too early to say how much Bangladesh's export sector would ultimately benefit.

"Japanese imports would not hurt Bangladesh if tariff policies for other countries were properly aligned," he told TBS. "Failure to adjust MFN (most favoured nation) rates could create a risk of trade diversion."

Government sees opportunity

The government believes the Japan deal will create new opportunities for trade, investment, and employment. It also hopes the agreement will reduce dependence on the European Union and the United States, while positioning Japan as a major export market.

Japan has notified the World Trade Organisation that it will extend GSP benefits to LDCs and graduating countries until 2029. Dhaka views the EPA as a long-term safeguard, as GSP is temporary while the EPA is a binding agreement.

Currently, 98.7% of Bangladeshi products enjoy duty-free and quota-free access to the Japanese market, and Japan is one of Bangladesh's key export destinations.

According to commerce ministry data, Bangladesh exported $1.4 billion worth of goods to Japan in FY25, while importing $1.8 billion in the same year.

Seven rounds of meetings

The Bangladesh-Japan EPA was launched under the ousted Awami League, with a joint research group identifying 17 priority sectors in a 27 December 2023 feasibility report.

Negotiations began in Dhaka on 19 May 2024 but stalled after the 5 August political change. The interim government revived talks in November 2024, setting a one-year signing target. Seven rounds of meetings preceded the commerce ministry's announcement of the deal signing.

The EPA aims to secure market access, expand services trade, and address post-LDC graduation challenges, marking Bangladesh's only bilateral deal beyond its pact with Bhutan.

The Bangladesh Bank's board approved a draft amendment to the Bangladesh Bank Ordinance 2025 in October as part of efforts to ensure the central bank's autonomy, but the amendment has yet to be implemented, even after three months, due to delays in obtaining final approval from the finance ministry.

The proposed changes to key appointments – particularly, the exclusion of government representatives from the central bank's board – have reportedly caused discontent among bureaucrats, contributing to the delay, according to an insider.

Against this backdrop, bankers at a meeting with the Bangladesh Bank on 11 January demanded swift implementation of legal reforms, including amendments to the Bank Company Act and the Bangladesh Bank Ordinance, to prevent a recurrence of the political interference seen under the previous regime.

During the meeting chaired by Bangladesh Bank Governor Ahsan H Mansur, bankers raised questions about the delay in implementing legal reforms. Nazma Mobarek, secretary of the Financial Institutions Division, was present at the meeting as the government representative.

Asked whether the central bank faced any political resistance in implementing the legal reforms, Governor Mansur told TBS that there had been no political interference, but some bureaucratic resistance on certain issues.

He said the key changes to the Bangladesh Bank Ordinance relate to the appointment and removal of the governor and deputy governors, board composition, and pay structure.

Mansur said the appointment and removal of top management would be conducted through an independent committee to ensure transparency and independence, noting that a political government would no longer be able to remove top officials solely through a notice and would instead have to follow due process.

Speaking to TBS on condition of anonymity, a managing director of a private commercial bank said the question was directed at the secretary, but she did not respond and left the meeting abruptly.

This was the first time a government representative had attended a bankers' meeting, but she left after bankers raised issues related to legal reforms, said the banker, warning that without the implementation of legal reforms to strengthen the central bank's autonomy, corruption in the banking sector could be repeated.

When contacted, Nazma Mobarek said a meeting was scheduled for 16 January to discuss the Bank Company Act and that work was underway on the Bangladesh Bank Ordinance.

The Bangladesh Bank's move to amend the Ordinance, in line with recommendations from the IMF, aims to shield the central bank from political interference and bring its governance in line with global best practices.

The draft amendment initially excluded government representatives from the central bank's board in line with international practice. At present, the Bangladesh Bank board includes three government representatives, a structure the governor said is not followed by any other central bank worldwide.

However, he said the Bangladesh Bank later included one government representative in the final draft, a move that drew objections from the IMF. "Despite the IMF's objection, we retained one government representative on the board, considering Bangladesh's context," he added.

Regarding pay structure, the governor said the draft amendment proposes an independent pay scale, a practice followed globally. He noted that the Bangladesh Bank earned a profit of Tk24,000 crore in 2025 – the highest among any organisation in the country.

"The central bank should therefore have an independent pay structure, with salaries higher than government levels but lower than those in private sector banks," he said, adding that while there is bureaucratic resistance over pay scale and board composition, the government is working to address the concerns.

On the proposed amendment to the Bank Company Act, the governor said some bank directors had opposed the requirement for 50% independent directors on boards. However, he argued that the provision ultimately benefits owners, as stronger governance improves bank performance.

Citing BRAC Bank as an example, he said the bank operates with 50% independent directors and has become one of the country's top-performing banks. The amendment, he added, would also reduce family dominance on boards, noting that bank owners have already seen how excessive family control has damaged institutions in the past.

Key reforms under amended Bangladesh Bank Ordinance

According to the draft, under a "double-layer" system for governor's appointment, a search committee will be formed, and the president will give the final approval. Decisions will be taken by a majority vote of the members present at the search committee meeting, and in the event of a tie, the presiding member will have the power to cast a second or casting vote.

The committee will include a former finance minister (chairperson), a former Bangladesh Bank governor or deputy governor, the comptroller and auditor general, the chairperson of the Public Service Commission, and two eminent citizens with expertise in economics, banking, or finance – at least one of whom must be a woman.

The governor's post will be upgraded from secretary to ministerial status.

The government will be legally restricted from dismissing the governor at will; the governor can only be removed through the same process used for removing a Supreme Court justice, which is a complex constitutional procedure.

The governor, deputy governors, and non-executive directors can only be removed by the Supreme Judicial Council for disqualification or gross misconduct.

The draft introduces major changes, including the restructuring of the Bangladesh Bank's board and the Monetary Policy Committee, with limited government officials' involvement.

It also clearly defines the Bangladesh Bank's mandate to ensure price and financial stability, granting it full policymaking, financial, operational, and personnel autonomy. Under the proposed ordinance, the Bangladesh Bank will become a statutory organisation.

The bank will manage its budget, allocate profits, and oversee monetary policy, financial supervision, and foreign exchange without interference. Direct government financing is restricted. Interest rates will be set by an independent Monetary Policy Committee.

The board will comprise the governor, two deputy governors, one government representative and five or six independent non-executive members with at least 15 years of relevant professional experience.

The ordinance was prepared in line with IMF recommendations as part of its $4.7 billion loan package, aiming to provide legal safeguards for the Bangladesh Bank's institutional, functional, financial, and personal autonomy, shielding it from undue political and private sector influence.

Major changes in the Bank Company Act

The Bangladesh Bank proposes limiting the number of directors from a single family and their affiliates on bank boards from five to two, and cutting a director's continuous term from 12 years to six, in a move to curb family influence in bank management.

Such dominance by certain board members has crippled the country's banking sector over the past 15-20 years, particularly during the Sheikh Hasina regime, leading to rampant loan scams, rising non-performing loans, and loss of public funds and trust.

Conglomerates such as S Alam gained control of multiple banks and withdrew thousands of crores of taka, much of which was allegedly laundered out of the country.

The central bank, in the final draft amendment of the Bank Company Act, also proposes to bar political figures from boards, ease foreign investors' shareholding limits, restrict one person from holding large stakes in multiple banks, and treat general and wilful defaulters equally.

The proposed draft amendment prohibits political figures – particularly government ministers, members of parliament, and mayors of city corporations – from serving as bank directors.

It also reduces the maximum number of directors in a bank company from 20 to 15 and requires that at least 50% of board members be independent directors, appointed from a panel prepared by the Bangladesh Bank.

While private importers must clear all customs duties before goods are released from port, two of the government's largest energy importers – Bangladesh Petroleum Corporation (BPC) and Petrobangla – have been lifting fuel consignments without paying upfront, leaving more than Tk34,000 crore in unpaid duties and taxes, according to customs officials.

The practice, they said, has severely hurt revenue collection at Chattogram Custom House, which handles most of the country's petroleum and liquefied natural gas (LNG) imports and relies heavily on payments from the two state-owned entities to meet its targets.

The biggest exposure is Petrobangla's LNG imports.

In an official letter dated 8 January, Chattogram Custom House demanded Tk22,048.62 crore in unpaid duties and taxes from Petrobangla for the period from 2021 to December 2025, alleging that LNG cargoes had been released without lawful assessment or payment.

According to the letter, obtained by The Business Standard, Petrobangla imported LNG under 408 bills of entry up to 30 November 2025. Duties amounting to Tk1,610.54 crore were paid against only 38 bills, while the remaining 370 consignments were cleared without payment.

The customs authority said this violated Sections 83, 84 and 90 of the Customs Act, 2023, which require importers to submit bills of entry, complete assessments and pay all applicable duties and taxes before goods are released.

"Petrobangla has been releasing LNG consignments by submitting bills of entry without paying duties or taxes, which is clearly contrary to the law," said Tafsir Uddin Bhuiyan, additional commissioner of Chattogram Custom House.

BPC's Tk12,347 crore exposure

BPC and its subsidiaries including Padma Oil Company, Meghna Petroleum, Jamuna Oil Company, Eastern Refinery and Standard Asiatic, have also built up large unpaid customs liabilities.

Between July 2020 and June 2025, these entities imported goods under 7,190 bills of entry, creating potential unpaid duties and taxes of Tk12,347 crore, customs officials said.

Show-cause and demand notices were issued for 695 bills, claiming Tk3,430.32 crore. BPC later paid Tk700 crore, but as of 29 October 2025, final demand notices were still outstanding on 578 bills amounting to Tk2,730.32 crore.

'Unequal system'

Customs officials said repeated reminders have failed to secure timely payments, forcing the authorities to issue final demand notices.

They said government-owned importers enjoy operational privileges that private firms do not, allowing them to clear goods without immediate duty payment.

"Private importers cannot release goods without paying duties. But state-owned entities do, and that gap is one reason we struggle to meet revenue targets," Tafsir Uddin said.

With Chattogram handling most fuel imports, any delay by BPC and Petrobangla directly hits national revenue performance, he added.

Energy expert Prof M Tamim said the two companies collect duties and taxes from consumers but fail to pass them on to the government.

"Releasing imports without paying duties is a clear irregularity," he said, urging the National Board of Revenue to intervene.

Why delay in payments

Petrobangla Director (Finance) Mizanur Rahman said LNG imports were previously subject to double taxation, with a 15% VAT at the import stage and another 15% during distribution.

"The government withdrew the 15% import-stage VAT in June 2025, leaving only a 2% advance income tax (AIT) and no customs duty on LNG imports," he told The Business Standard.

"We are now paying the AIT regularly. Most of the Tk22,048 crore dues relate to the period before June 2025."

A senior Petrobangla official said chronic delays in government subsidy payments were the main reason the company could not clear its tax liabilities.

"We sell gas at a subsidised rate of around Tk2 per unit. The government is supposed to reimburse that subsidy, but Finance Division delays have left us short of cash," the official said.

The situation worsened as the taka weakened and global LNG prices surged, sharply raising import bills, he added.

Petrobangla Chairman Mohammad Reznur Rahman said, "We are working with the NBR

and the Finance Division. Some arrears have already been paid, and once the subsidy is

disbursed, we will settle the remaining dues."

BPC's chairman and directors did not respond to calls for comment. However, a BPC official said the corporation's companies regularly pay their dues and that payments are withheld only when disputes arise over customs claims.

Duties waived in budget

Petrobangla Director (Finance) Mizanur Rahman said LNG imports were previously subject

to double taxation, with a 15% VAT at the import stage and another 15% during

distribution.

"The government withdrew the 15% import-stage VAT in June 2025, leaving only a 2%

advance income tax (AIT) and no customs duty on LNG imports," he told The Business

Standard.

"We are now paying the AIT regularly," he added, noting that the Tk22,048.62 crore in

dues had accumulated before June 2025.

The FY2025–26 budget withdrew import duties on several fuels, including diesel and natural gas, while granting concessions on CNG, NPG and LNG imports.

The import duty on natural gas was cut from 100% to zero, while duties on crude and partially refined petroleum, fuel oils, gas oil and other heavy oils were fully waived.

For CNG, NPG and LNG, the import duty was reduced from 10% to 5%.

The budget also proposed lowering the import duty on crude oil and oil derived from bituminous minerals from 5% to 1%.

For aviation fuels – including jet fuel, kerosene, naphtha, motor and aviation spirits, and white spirit – the duty was proposed to fall from 10% to 3%, with the same rate applied to light diesel and high-speed diesel.

Taiwan has reached a "general consensus" with the United States on a trade deal, the democratic island's negotiators said Tuesday, after months of talks.

Taiwan and the United States began negotiations in April to hash out a trade deal after US President Donald Trump slapped a 32 percent tariff on Taiwanese exports, which was later lowered to 20 percent, as part of his sweep of measures against dozens of trade partners.

Taiwanese President Lai Ching-te has pledged to boost investment in the United States and increase defence spending as his government tries to further reduce the levy on its shipments, as well as avoid a toll on its semiconductor chip exports.

"The goal of the US-Taiwan tariff negotiations has always been to seek reciprocal tariff reductions without stacking tariffs, and to obtain preferential treatment under Section 232 for semiconductors, semiconductor derivatives, and other items," the Office of Trade Negotiations said in a statement, adding there was a "general consensus" on these issues.

Section 232 refers to part of the US Trade Expansion Act that allows tariffs to be imposed when national security is found to be at risk.

"Both sides are currently discussing the schedule for a concluding meeting, and an announcement will be made once it is confirmed," the statement said.

Taiwan's trade officials also vowed to provide "a complete explanation of the negotiations and the agreement" to the opposition-controlled parliament and the public.

Taiwan is a powerhouse in the manufacturing of semiconductor chips, which are the lifeblood of the global economy, as well as other electronics.

Trump has previously accused Taiwan of stealing the US chip industry and his administration had made clear it wants more of the critical technology made on American soil.

The US government launched investigations under Section 232 into semiconductors and chip-making equipment last year.

Taiwan's trade surplus with the United States was the seventh highest of any country in 2024, reaching US$73.9 billion.

More than half of its exports to the United States are information and communications technology products, including semiconductors.

Lai has been at pains to find favour with Trump, vowing to raise defence spending to more than three percent of GDP this year and five percent by 2030.

But the opposition-controlled parliament has stymied his government's budget for 2026 and an additional $40 billion defence spending.

TSMC, the world's largest contract chipmaker, has also pledged to invest an additional US$100 billion in the United States.

But Taiwanese Deputy Foreign Minister Francois Chih-chung Wu told AFP recently that Taiwan planned to keep making the "most advanced" chips on home soil.

Alphabet briefly hit $4 trillion in market valuation on Monday, as the Google parent's sharpened artificial intelligence focus allayed doubts about its strategy and thrust it back to the forefront of the high-stakes race.

In the latest sign that its efforts were paying off, Alphabet said the next generation of Apple's AI models will be based on Google's Gemini under a multi-year deal.

The company's class-A shares rose as much as 1.7% to $334.04 to hit a record high before giving up those gains.

A Reuters report earlier this year said that Samsung Electronics plans to double this year the number of its mobile devices with AI features powered by Gemini.

Alphabet last week surpassed Apple in market capitalization for the first time since 2019, becoming the second most valuable company in the world.

The milestones mark a remarkable change in investor sentiment for Alphabet, with its stock surging about 65% in 2025, outperforming its peers on Wall Street's elite group of stocks, the so-called Magnificent Seven.

The shift was fueled by the company quelling concerns that it let an early AI advantage slip by turning a once-overlooked cloud unit into a major growth engine and drawing a rare tech investment from Warren Buffett's Berkshire Hathaway.

"Of the Magnificent 7 stocks, it's the one name that has surprised us all over the last 12 months and they're making inroads beyond their traditional model," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.

"What I would give the company credit for is innovation, that's what they've done to separate them from a lot of other firms in recent days and you're seeing it in earnings data."

The new Gemini 3 model has drawn strong reviews, intensifying pressure on OpenAI after GPT-5 left some users underwhelmed.

Google Cloud's revenue jumped 34% in the third quarter, with a backlog of non-recognized sales contracts rising to $155 billion.

Renting out Google's self-developed AI chips that were reserved for internal use to outside customers has also enabled the unit's breakneck pace of growth.

Indicating the rising demand, The Information reported that Meta Platforms was in talks to spend billions of dollars on Alphabet's chips for use in its data centers starting from 2027.

Meanwhile, Alphabet's dominant revenue generator – the advertising business – has largely held steady in the face of economic uncertainty and intense competition.

Alphabet is the fourth company to hit the $4 trillion milestone after Nvidia, Microsoft and Apple.

The stock has also benefited after a US judge in September ruled against breaking up the company and allowing it to retain control of its Chrome browser and Android mobile operating system.

The yen fell ​to its lowest against the dollar since July 2024 on Tuesday as traders braced for a Japanese election and also ‌hit lows against European currencies, with the dollar pressured by worries about the Federal Reserve’s independence.

Those fears, after the Trump administration opened a criminal investigation into Chair Jerome Powell, remain the most important factor for markets in the long term, analysts said.

Still, with the administration’s move drawing criticism from key members of Trump’s Republican Party, it had less of an impact on daily price moves. Instead, the Japanese yen was the main mover, briefly sliding to the weak side ‌of 159 per dollar for the first time since July 2024.

That followed news from Kyodo that Japanese Prime Minister ​Sanae Takaichi had conveyed to a ruling party executive her intention to dissolve parliament’s lower house at the outset of its regular session scheduled to start on January 23.

The dollar was last up 0.5 percent on the yen at 158.9 yen.

Takaichi is ahead in ‍the polls, and, should she achieve a decisive electoral victory, investors may further buy into the “Takaichi trade” -- a view that the premier’s desire for more fiscal stimulus would push stocks higher, while sending bond yields higher and the yen lower.

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That was certainly Tuesday’s trade with the Nikkei share index hitting a new record high, and yields ⁠on 30 year Japanese government bonds surging 12 bps.

The yen sank to record lows against the euro and the Swiss franc , while also hitting ‍its weakest level against the British pound since August 2008.

Bangladesh's turmoil-tossed economy shows significant signs of recovery with the July-September fiscal quarter showing a liftoff from a miasma over the last couple of years, analysts say, based on latest statistics.

The economy got a boost with the gross domestic product (GDP) having grown at a rate of 4.50 per cent in the first quarter (July-September) of the current fiscal (FY) 2025-26, according to Bangladesh Bureau of Statistics (BBS) data released Tuesday.

This marks a notable improvement from the sluggish 1.81-percent growth during the same period in the previous fiscal year (FY2024-25) -- the time of a political turmoil that toppled the reigning regime.

Also, it has almost doubled over the immediate-previous quarter or Q4 of the last FY when the GDP growth was projected at 2.47 per cent,

A senior BBS official told The Financial Express that the economic growth during July 2025-September 2025 (Q1) of the current FY2026 gained momentum as the country's all three broad sectors -- agriculture, industry, and services -- performed better.

"The BBS data indicate that the nation is gradually overcoming the economic stagnation caused by the political and social transitions of the preceding year," he says.

The industrial sector boasted a big jump as the GDP expanded there at 6.97 per cent in Q1 of the current fiscal year compared to 3.59 per cent in the same period of FY2025.

Similarly, the largest job-absorbing agriculture sector also rebounded with a 2.30-percent growth in the first quarter this fiscal from a minus 0.60-percent rate in the same period last FY2025, BBS data show.

Meanwhile, another broad contributor -- services sector -- grew by 3.67 per cent rate, up from 2.96 per cent in the corresponding quarter.

The provisional estimates show a mixed performance across different sectors and subsectors of the economy -- in the wake of domestic and external adversities.

The construction sector emerged as a major driver of growth, surging to 12.41 per cent in Q1 FY2026.

This marks a "dramatic turnaround" from the 1.90-percent growth recorded in Q1 FY2025, signaling a revival in infrastructure projects and private real-estate investment.

Wholesale and retail trade grew by 4.59 per cent and the financial and insurance activities saw a modest growth of 0.55 per cent, the BBS statistics showed Tuesday.

In contrast to the overall recovery, utilities sectors like electricity, gas, and water supply faced a significant slump, contracting by 10.70 per cent. This follows a period of volatility in the energy sector besides supply-chain challenges.

Analysts say the 4.50-percent growth rate suggests that the "stuttered" economy of 2024 is regaining its footing.

They point out that the base effect -- following the extremely low growth of 1.81 per cent in 2024 -- helped boost this year's percentage, but the double-digit growth in construction indicates a genuine return of industrial activity.

The BBS has published quarterly GDP data since the 2023-24 fiscal year to provide policymakers with real-time insights into the country's economic health.

This latest report will be a key benchmark for the government as it prepares for the remainder of the fiscal year, with a focus on stabilising inflation and boosting foreign direct investment.

State-owned Sonali Bank has urged the government to issue bonds against unpaid loans to the Bangladesh Sugar and Food Industries Corporation (BSFIC) to address the lender’s capital shortfall.

The state-owned corporation, which manages 15 sugar mills, owes the bank Tk 6,600 crore.

Another state-owned agency, the Investment Corporation of Bangladesh (ICB), owes Sonali Bank Tk 1,700 crore. The bank is also awaiting receivable commissions of around Tk 5,500 crore tied to the Rooppur Nuclear Power Project.

“We have been able to reduce our capital shortfall over the past few years, and we will have no shortfall if these loans are recovered,” Sonali Bank Managing Director Md Shawkat Ali Khan said at a press briefing at the bank’s Dhaka headquarters yesterday.

At the end of September 2025, the bank’s capital shortfall stood at Tk 2,174 crore, down from Tk 5,949 crore in December 2024, according to figures presented by Md Iqbal Hossain, the bank’s chief finance officer.

Provision shortfalls also fell to Tk 1,801 crore from Tk 4,632 crore over the same period.

Sonali Bank must maintain provisions of Tk 3,000 crore against dues from BSFIC, and Tk 1,300 crore for ICB investments.

Officials said these shortfalls are the main driver of the bank’s capital gap.

Other factors cited include loans to Orion Infrastructure, delayed government compensation, and unrecovered commissions of Tk 5,500 crore against letters of credit totalling Tk 94,246 crore issued for the Rooppur project.

At the conference, Khan highlighted the bank’s improved financial structure, crediting reforms, targeted planning, and strengthened loan recovery efforts.

He said, “Public confidence in Sonali Bank is very high. It is because of this trust that people deposit more funds.”

“Sonali Bank is now much more careful in selecting borrowers. Our depositors are a blessing for us,” Khan said, noting that no incidents similar to the Hallmark scandal have occurred since.

Operating profit rose 41 percent year-on-year in 2025 to Tk 8,017 crore. Audited net profit is expected to fall between Tk 1,100 crore and Tk 1,700 crore. The bank’s non-performing loan ratio fell to 16 percent at the end of the year, with plans to reduce it below 9 percent by 2026.

Md Shawkat Ali Khan claimed that no such incident has occurred at Sonali Bank since the Hallmark scandal – a massive loan scandal involving more than Tk 3,500 crore

“Sonali Bank is now much more careful in selecting borrowers. Our depositors are a blessing for us,” he said.

The bank’s operating profit rose 41 percent year-on-year in 2025 to Tk 8,017 crore. Audited net profit is expected to fall between Tk 1,100 crore and Tk 1,700 crore.

Khan also said the bank’s non-performing loan ratio fell to 16 percent at the end of the year, with plans to reduce it below 9 percent by 2026.

A group of Bangladeshis living abroad has expressed strong interest in contributing to the country's economic development, strengthening governance and institutional capacity, and promoting skilled workforce and youth development by leveraging their experience, global exposure, and technical expertise.

They said that following the mass uprising and the upcoming national election, the economy is expected to rebound through fresh investment and job creation, particularly at a time when the growing use of artificial intelligence has made skilled human capital increasingly important.

In this context, expatriates can play a crucial role by channelling remittances and investments and engaging more actively in the country's economic development, they added.

The views were shared at a policy dialogue held in Dhaka on Sunday night (11 January) by the Global Bangladeshi Alliance (GBA), a US-based, non-partisan, research-driven organisation.

The dialogue focused on ensuring democratic governance and institutional reform, economic development through trade and investment, ICT innovation and job creation, youth empowerment and skill development, diaspora engagement, international advocacy, and the revitalisation of the Bangladesh caucus.

Veteran politician and BNP standing committee member Dr Abdul Moyeen Khan attended the programme as the chief guest, while renowned political figure Mahidur Rahman presided over the event.

Policymakers, academicians, business leaders, and civil society representatives were present as special guests.

Welcoming the diaspora, Abdul Moyeen Khan said expatriates had returned to the country with the intention of contributing to national development. He noted that several projects and policy issues were presented during the dialogue and said that the country would benefit if those initiatives were implemented.

"You have focused on job creation and other important issues for our economy. Bangladeshi youths are very close to realising the vision of economic development, and we must nurture this potential with the support of expatriates," he said.

He also said that former prime-minister Begum Khaleda Zia, with a visionary outlook, had established the information and communication technology ministry, which paved the way for technology adoption in the country.

Referring to recent political developments, he expressed hope that the upcoming election would restore democratic governance and said diaspora engagement would be essential to boosting the economy.

GBA co-chair Kawsar Chowdhury stressed the need to diversify the export basket by strengthening the SME sector and other emerging industries, alongside creating more jobs and expanding manpower exports to new destinations.

Conference president Mahidur Rahman said that members of the diaspora had previously been unable to return to the country or speak openly. "After the uprising, we returned to contribute to the economy. At present, we are supporting the economy mainly through remittances," he said.

He added that future political leaders must consider how expatriate Bangladeshis can play a more active and structured role in the country's economic development.

Amidst the stand-off between traders and the government over the implementation of the National Equipment Identity Register (NEIR), the government has reduced import taxes on handsets by approximately 30% to lower the price of imported devices.

The National Board of Revenue (NBR) said the move aimed at keeping devices affordable while supporting the local manufacturing industry.

In two separate notifications issued today (13 January), the NBR reduced the overall import tax on finished mobile phone handsets from about 62% to 43.43%. At the same time, import taxes on components used by local handset manufacturers were lowered from around 17% to nearly 12%.

According to a NBR press release, the revised duty structure is expected to reduce the price of each imported finished mobile phone priced above Tk30,000 by around Tk5,500.

Under the new orders, import duty on handsets has been cut from 25% to 10%, while duty on components for local manufacturers has been reduced from 10% to 5%.

The revenue authority said the decision was made to ensure mobile phones remain affordable for the general public and to facilitate wider access to digital services.

It added that the dual measures were designed to strike a balance between consumer interests and the sustainability of the domestic mobile phone assembling industry.

The NBR reaffirmed that the government's efforts to keep mobile phone prices within consumers' reach would continue as part of its broader goal of promoting digital inclusion and expanding access to technology nationwide.

The tax cuts come amid the rollout of the NEIR, a regulatory initiative introduced under the supervision of the Bangladesh Telecommunication Regulatory Commission (BTRC) to curb the use and trade of illegal, counterfeit, and unregistered mobile phones.

Under NEIR, every mobile handset must be registered using its unique International Mobile Equipment Identity (IMEI) number before it can access cellular networks. Authorities say the platform will help block stolen or smuggled devices, reduce grey market imports, improve network security, and ensure a level playing field for compliant importers and manufacturers.

However, the implementation of NEIR has sparked protests by mobile phone traders across the country, particularly small and medium retailers. Protesters argue that the system could disrupt business and impose additional financial and administrative burdens.

Traders demanded a longer transition period, clearer guidelines, amnesty for existing stock, and stronger public awareness campaigns before full enforcement of the system.