Bangladesh's economic health expanded at a slightly faster pace in December last year, with the Purchasing Managers' Index (PMI) rising to 54.2, up 0.2 points from November.

Data showed continued expansion in agriculture, manufacturing, and services, while the construction sector returned to marginal contraction, according to a press release issued today (7 January) by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB).

According to the statement, the agriculture sector grew for the fourth consecutive month, supported by higher new business, business activity, employment, and input costs, despite a faster contraction in order backlogs.

Manufacturing expanded for the 16th month, driven by growth in new orders, exports, output, input purchases, and employment. The finished goods index returned to expansion, while order backlogs contracted at a slower pace.

The construction sector, however, slipped back into marginal contraction, with new business declining faster, while growth in construction activity and employment remained limited. Order backlogs continued to shrink for the fifth consecutive month.

The services sector expanded for the 15th month, with employment and input cost indices rising, even as new business, overall activity, and order backlogs contracted.

PMI is a globally recognised economic indicator that surveys purchasing managers to track business conditions, providing timely insight into economic trends ahead of official GDP data.

"The latest PMI readings indicate a marginal expansion of the economy, driven by strong agricultural sector performance. Manufacturing sector experienced second straight month of slowdown, while the construction sector reverted to contraction," said M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh.

In terms of the future business index, slower expansion rates were recorded for all the key indexes of agriculture, manufacturing, construction, and services.

"The future business index however remained in expansion across all key sectors of the economy, suggesting sustained optimism and continued growth momentum post-elections," said Reaz.

Bangladesh's treasury won't feel dollar stress even after settling import- payment obligations to the Asian Clearing Union (ACU) member- countries as gross foreign-exchange reserves are yet expected to stay over US$32 billion.

The latest payment of $1.5 billion is scheduled to be remitted to the ACU headquarters in Tehran today (Thursday), officials said Wednesday.

As per the union's existing provisions, outstanding import bills and interest thereof are to be paid by member-countries every two months.

After the payment for the November-December 2025 period, the country's gross forex reserves are estimated to stand over $32-billion mark Thursday, little down from $33.78 billion on the previous working day. The reserves stood at $33.71 billion Tuesday.

"Our forex reserves now stand at a satisfactory level, even after making the routine payment to the ACU," a senior official of Bangladesh Bank (BB) told The Financial Express (FE) in response to a query about any worry.Financial Analysis Service

The central bank has been working to build up the reserves since the recent mass uprising in 2024, according to the BB official, who cites the reasons like steady inflows against subdued outflows.

"Higher inflow of remittances along with steady growth in export earnings has helped boost the country's forex reserves," the central banker explains.

Purchase of the greenback from the commercial banks by the central bank has also contributed to the rise forex reserves recently, he adds.

The central bank of Bangladesh has so far bought $3.55 billion from banks directly since July 13 last under the prevailing free-float exchange arrangement, latest BB data show.

"Lowe import-payment obligations have also contributed to improving the country's forex-reserves situation," another BB official says, adding that the country is able to meet more than five months' import-payment bills with the existing reserves.

Bangladesh's gross foreign exchange reserves have increased by nearly $1 billion in just 15 days, reaching $29.19 billion, according to the Bangladesh Bank.

The central bank's spokesperson and Executive Director Arief Hossain Khan disclosed the information to journalists today (7 January).

Under the International Monetary Fund's BPM6 accounting method, the country's gross reserves stood at $28.04 billion on December 22, 2025. This means reserves rose by about $1 billion within a fortnight.

The central bank has been boosting reserves mainly by purchasing US dollars from commercial banks through auctions.

A senior Bangladesh Bank official said the supply of dollars in the banking system has improved due to a rise in remittance inflows.

"To prevent the exchange rate from falling amid higher dollar inflows, the central bank has been buying dollars through auctions," the official added.

Bangladesh Bank data shows that, following the latest purchases, total dollar buying during the first six months of the current 2025–26 fiscal year (from July to January 6) has reached $3.54 billion.

As a result, total dollar purchases in January 2026 alone have stood at $411 million.

AkijBashir Group, one of Bangladesh's largest diversified industrial conglomerates, is set to enter the country's rapidly expanding cable manufacturing market with an initial investment exceeding Tk300 crore.

The group, which will formally begin commercial operations today with a launch event in Dhaka, will initially focus on domestic, industrial and communication cables, with plans to gradually expand into high-voltage and specialised cables in later phases. Industry insiders say the move is likely to intensify competition in a market currently valued at around Tk12,000 crore.

AkijBashir Group Chief Operating Officer Khorshed Alam told TBS, "Building materials already contribute more than 60% of our total business. Our strategic objective is to further expand this division, enabling consumers to source most construction-related products from a single, trusted brand. The decision aligns with the group's long-term strategy to strengthen its building materials portfolio."

According to company officials, the group had acquired a nearly ready cable manufacturing facility previously owned by Eminence Cable Central Well. The plant features a world-class layout and machinery sourced from China, Europe, Germany and India.

Initially, the factory will have the capacity to process around 300 tonnes of copper cables and 200 tonnes of PVC annually. The project is expected to generate employment for nearly 500 people, both directly and indirectly.

AkijBashir has also outlined plans to double production capacity within the next year, subject to market response.

According to Khorshed Alam, the group's market research revealed structural weaknesses in the existing cable industry.

"In some segments, the market shows monopolistic behaviour, leading to unhealthy competition and dissatisfaction among channel partners and consumers. In other cases, inconsistent supply due to capacity and quality issues has created uncertainty," he said. "These gaps present an opportunity for a player that can ensure consistent supply, competitive pricing and uncompromised quality."

A new net zero journey for new Akij breakaway

Bangladesh's cable demand has surged in recent years, driven by urbanisation, housing projects, industrial expansion and large infrastructure developments such as metro rail lines, tunnels and elevated expressways. Industry analysts project annual growth of 10-15% over the next decade, barring short-term economic disruptions.

Industry insiders say Bangladesh's domestic cable market has expanded from around Tk2,000 crore to Tk12,000 crore over the past decade, driven by rapid electrification and infrastructure development. More than 120 companies now operate in the sector, generating over 50,000 jobs. BRB Cable Industries Limited leads the market with over 30% share, while Bizli Cables is the second-largest producer. Other key players include BBS Cables, Paradise Cables, and Walton. Despite sufficient local capacity, imported cables continue to be widely used in government projects.

Technology and safety focus

A key differentiator of AkijBashir's cable offering will be its emphasis on safety and advanced insulation technology. The company plans to introduce three-layer insulated cables, still rare in the domestic market, designed to significantly reduce electrical fire risks.

"Most cables available locally use two-layer insulation. We are introducing three-layer insulation technology that can withstand temperatures of up to 105 degrees Celsius," Khorshed said.

"This level of safety is crucial, especially considering that a large portion of urban fires in Bangladesh are linked to electrical faults."

The company will source copper exclusively from London Metal Exchange-approved suppliers, ensuring 99.9% purity, while PVC and other raw materials will be procured from verified international sources.

"Quality begins with raw materials. We are fully committed to maintaining international standards, even if it means higher costs," Khorshed added.

Why cable quality should matter more than price

While premium raw materials raise production costs, AkijBashir says its pricing strategy will remain market-sensitive.

"We will not position our products beyond consumers' reach. Ours is a competitive market, and we intend to price our cables in line with existing products without compromising on quality," Khorshed said.

Industry experts note that price competition has often pushed some manufacturers to compromise on materials, increasing safety risks. AkijBashir's challenge will be to balance cost efficiency with its quality commitments.

AkijBashir operations span fast-moving consumer goods, logistics, and building materials. Its building materials division covering steel, tiles, sanitaryware and boards has emerged as a key growth driver.

On some days, Dolon simply stops taking her medicine. Not because her condition has improved or doctors advised her to. She stops because she is exhausted mentally, financially and emotionally.

Almost all her salary now disappears into medication and treatment. Every few months, prices rise again — quietly but relentlessly — outpacing her income and shrinking her choices.

"This is one of the reasons I don't even think about getting married," she said. "When I think about children, I feel scared. I can barely manage my own life."

However, for Saiful Islam, a thyroid cancer patient, daily medication is non-negotiable. Missing a single day once landed him in emergency care, with doctors fearing a relapse. But inflation has meant that life is shrinking inch by inch.

"I must undergo Tg, anti-Tg, serum calcium, scans, FT3 and FT4 tests every three months. Once the reports stabilised after a year, the tests became mandatory every six months. I must take three Thyronorm 50 tablets daily. Missing even one day causes complications. When I first started the medication, one strip cost Tk120. Then it became Tk180, and now it is Tk240. I have no choice but to take it," Saiful said.

"Earlier, I used to buy shirts worth Tk1,000; now I buy ones priced at Tk600. Where I once ate two kilograms of fish per week, I now eat one. This is how I am adjusting. There is no alternative," he added.

Since inflation accelerated after 2022, illness has become not just a health crisis in Bangladesh but a financial one. Families are cutting back on food, clothing, travel — even dignity — selling homes, skipping doses, and delaying treatment just to survive rising medical costs amid a broader cost-of-living squeeze.

Skipping doses, selling homes, taking loans

Bangladesh today bears one of the heaviest private healthcare burdens in the world. According to official data from the National Health Accounts, 68.5% of medical expenses were paid out of pocket in 2020, rising to around 73% in 2021. Only war-torn Afghanistan fares worse. The World Health Organization recommends a maximum of 20%.

Behind these numbers are people like Dolon and Saiful, recalibrating their lives around pills, test reports, and medical bills.

In Rajshahi, Nadim Abdullah runs a small shop that supports his father, younger sister, wife, and himself. When someone in the family falls sick, the business grinds to a halt.

"Sometimes we are supposed to take seven days' medicine, but we stretch it over three days," he said. "If I take medicine properly, the shop's cash will be gone."

Loans followed. NGO installments piled up. Eventually, Nadim sold his house.

"My wife has been suffering from gynaecological problems for four years," Nadim explained. "I can't afford proper treatment. I bring home homeopathic medicine just to give her some comfort. It doesn't work. This July, I sold my house. Over more than a decade, my inability to sustain and manage my business led me to accumulate debts of Tk5–7 lakh. I sold my house to repay them."

According to a 2022 survey by the Bangladesh Institute of Development Studies (BIDS), approximately 18% of the households face catastrophic health expenditures and more than 6.13 million people were pushed below the poverty line due to healthcare costs. Households cope by borrowing, selling assets, or simply avoiding treatment altogether.

My wife has been suffering from gynaecological complications for four years. I can't afford proper treatment. I bring home homeopathic medicine just to give her some comfort. It doesn't work. This July, I sold my house.
Nadim Abdullah, shopowner, Rajshahi

Rumana Huque, professor of Economics at the University of Dhaka and a public health specialist, believes that the crisis cannot be separated from the post-pandemic economy.

"Since Covid-19, people have been under immense pressure," she said. "Add to this the Ukraine–Russia war, the overall economic slowdown, and Bangladesh's political situation.

"What we see in labour force surveys is rising unemployment, especially among women. In this context, the macroeconomic situation is directly affecting people's ability to pay for healthcare from their own income," Rumana added.

Women's unemployment has risen the fastest, even as healthcare costs climb. For many families, women quietly absorb the shock — cutting their own needs first.

Medicines: The biggest drain

The largest share of out-of-pocket spending in Bangladesh goes to medicines. According to BIDS, 54.4% of the cost was spent on purchasing medicines, while the diagnostic cost is 27.52%, 10.31% for consultation and 7.77% for transport cost.

Rumana Huque said Bangladesh's medicine prices are unusually high compared to neighbouring countries.

"If we compare with India, Nepal or Pakistan, medicine prices in Bangladesh are relatively higher. This is often disputed by pharmacists, but comparative data shows clearly that prices here are significantly higher."

The absence of a structured referral system worsens the problem. Patients can buy many drugs over the counter without prescriptions. Self-medication rises. Costs spiral.

"People end up buying medicines on their own," Rumana explained. "That increases out-of-pocket expenditure even further."

In theory, essential medicines are free at public facilities. In reality, supplies dry up fast.

"In many upazila health complexes, medicines run out within 15 to 20 days. After that, patients must buy from their own pocket."

Shoayeb Mahmud from Manikganj knows this well. His mother's diabetes medication costs Tk3,600–4,000 a month. His father's medicines cost another Tk1,600. Their child's skin infection has already drained Tk20,000.

"We borrow from relatives for treatment," he said. "Still, we can't recover."

Doctors often prescribe medicines outside the Essential Drug List, even at public hospitals. Those drugs must be purchased privately, at market prices.

"This creates additional pressure," Rumana Huque mentioned. "Even when people go to government facilities, they still end up paying."

Urban patients face a different trap. Public hospitals are overcrowded and under-resourced, forcing people into private clinics.

"There is no prepayment mechanism, no insurance," Dr Huque said. "In urban areas, people depend heavily on private providers. That pushes costs much higher."

Even within cities, prices vary wildly between clinics. Medicines are often sold under brand names rather than generics, creating confusion and inequality.

"There is disparity between urban and rural areas," she said. "But also disparity within cities themselves."

A system stretched thin

According to the World Bank, financial hardship drops sharply when out-of-pocket spending falls below 20%. Bangladesh is nowhere near that threshold. The root problem lies in chronic underinvestment.

Bangladesh allocates around 1% of GDP to health, far below the WHO-recommended 5%. While health budgets have grown nominally, much of the money goes to salaries and routine expenses. A significant portion remains unspent due to weak implementation.

The result is a system where people with means seek treatment abroad — in India, Thailand, or Malaysia — draining foreign currency, while those without means delay care or fall into poverty.

Professor Rumana argued that the pharmaceutical industry and government both have roles to play.

"The pharmaceutical industry has an important role to play. If companies were willing to reduce their profit margins, prices could come down. Many raw materials and components for medicines are imported, and reducing import taxes on these inputs could also help lower costs. At present, the cost of doing business in Bangladesh — across industries, including pharmaceuticals — is very high," she said.

"If the government were to provide targeted incentives to pharmaceutical manufacturers — such as tax relief, support through export processing zones, or other facilities — particularly for life-saving medicines, prices could be brought down to a more affordable level. This would significantly reduce the financial burden on the public."

Until then, households will continue to absorb the shock.

Bangladeshi feed millers have imported corn from the United States for the first time in eight years, citing competitive prices, quality considerations and broader efforts to narrow the bilateral trade gap.

The shipment, carrying 57,855 tonnes of corn, arrived at Chattogram port yesterday, according to a press release from the US Embassy in Dhaka. The last such import from the US was in 2018.

Traders said US corn was priced $3 to $5 per tonne cheaper than corn from Bangladesh's usual suppliers, while meeting quality requirements.

Corn is Bangladesh's second-largest grain crop after rice in terms of acreage and production.

Even so, the country remains heavily dependent on imports to meet feed demand.

The renewed corn imports come amid broader trade engagement between the two countries. The US had earlier reduced its reciprocal tariff rate for Bangladesh to 20 percent from an initial 37 percent after Dhaka agreed to increase imports from the US to help narrow an annual trade gap exceeding $6.2 billion.

Bangladesh has also signed a memorandum of understanding to import 660,000 tonnes of US wheat, of which around 300,000 tonnes have already been received.

LONGER ROUTE BUT LOWER PRICE

According to a United States Department of Agriculture report, Bangladesh imported about 93 percent of its corn from Brazil in the 2024-25 marketing year, followed by 4 percent from Argentina and 2 percent from Pakistan.

Brazilian corn has long been preferred for its price competitiveness and yellowish colour, which feed producers believe improves the appearance of pellet feed, states the report.

Rakibur Rahman Tutul, managing director of corn importer Nahar Agro Group, said the company opted for US corn this year after finding it offered the best balance of price and quality through a bidding process.

He said Brazilian corn was priced at around $250 per tonne, while US suppliers undercut that by $3 to $4 per tonne.

Although shipping from the US takes longer, around 46 days compared with about 30 days from Brazil or Argentina, the company determined it had sufficient inventory to absorb the delay, he added.

Tutul said such decisions depend heavily on supply-chain planning, noting that longer shipping routes are avoided when stock levels are tight.

He also noted that assurances from US agricultural representatives regarding logistical and quality support helped reduce risks.

While the decision also aligned with efforts to narrow Bangladesh's trade deficit with the US, Tutul stressed that cost savings remained the primary consideration.

Sourcing strategies, he said, change from year to year depending on crop quality, regional demand and price competitiveness.

Moshiur Rahman, managing director of Paragon Group, said the company sources raw materials from multiple countries, including Brazil, Argentina and the United States, depending on prevailing prices.

A price difference of $4 to $5 per tonne can translate into savings of $400,000 to $500,000 per shipment, he said. Paragon previously sourced from the US before shifting to Brazil and Argentina when prices there fell, and has now returned to the US as prices became competitive again, he informed.

Rahman said sourcing decisions are reviewed monthly, and shipments may come from multiple origins within the same month. Regardless of supplier interest, he added, the company's priority is securing quality raw materials at the lowest possible price.

US Embassy Dhaka Agricultural Attaché Erin Covert visited the port yesterday to welcome the shipment alongside representatives of Nahar Agro Group, Paragon Group and Nourish Poultry and Hatchery Limited.

An official from United Grain Corporation, a major US grain exporter, said the company was honoured to be part of the first US corn shipment to Bangladesh in eight years and expressed optimism about supplying US grains to the country in the years ahead.

I have long believed Bangladesh has realised only a fraction of its potential. After more than three decades working across industries and engaging with government processes, one conclusion is hard to escape: fragmented governance, siloed decision-making and weak coordination among institutions are holding us back.

In 1961, South Korea created the Economic Planning Board to bring planning, budgeting, industrialisation and economic analysis under one command -- the President's office. That same year, Singapore set up the Economic Development Board to align investors, infrastructure, skills and trade around a single industrial vision. These were not exercises in expanding bureaucracy. They were coordination authorities, economic nerve centres, that helped resource-constrained nations move with clarity and discipline.

Bangladesh does not need to copy these models. But it must learn from what worked.

Today, our economy is steered by powerful bodies: the National Board of Revenue, the Bangladesh Bank, Bida, the Securities and Exchange Commission, multiple ministries and scores of regulators, each with its own mandate and priorities. They rarely operate as one system with one shared vision. As a result, tax, investment, monetary, trade and industrial decisions are often taken in isolation and then collide in the real economy.

The costs are not theoretical. Take taxation in construction materials. The NBR may hesitate to withdraw VAT and taxes on cement used for brick making to protect short-term revenue targets. Yet lower taxes could make cement bricks competitive against environmentally harmful burnt bricks, improving public health and environmental outcomes. What appears to be a revenue decision is also an industrial, environmental and health policy choice.

Economic policy is inherently interconnected. Construction alone illustrates this clearly. It links roughly 3,600 industries, from steel to microfinance. A narrow decision on steel taxes should not be judged only by immediate revenue effects. Lower input taxes can raise activity across the entire ecosystem, creating jobs and downstream tax collections that may outweigh the initial loss.

Many countries have used real estate investment-friendly frameworks to generate powerful multiplier effects. Bangladesh should assess it.

If we are serious about reaching developed economy status by 2041, we need a permanent platform where these interconnections are understood and acted upon together. What the country needs is a National Financial Strategy Cell, placed directly under the Prime Minister's Office, to function as an economic nerve centre.

This should not become another administrative layer. It must be a lean, data-driven coordination mechanism that aligns fiscal, monetary, trade, investment and industrial policy so that decisions reinforce each other. Its role should be to stress-test major proposals for cross-sector impact, flag contradictions early and present integrated options at the highest level.

Such a body should be empowered to convene regulators and relevant ministries, with credible private sector participation. The aim is not to replace existing institutions but to connect them. Private sector input matters because policy frictions often surface first on factory floors, at ports, in banks and in markets, long before they appear in official reports.

The payoff would be tangible. First, greater coherence, allowing revenue goals to be balanced with growth, jobs, competitiveness and environmental outcomes. Second, smarter incentives that support export upgrading and productivity without ad hoc distortions. Third, faster and more coordinated responses to crises, whether currency volatility, banking stress, supply disruptions or emerging global opportunities. We can no longer afford fragmented governance. When a minor fee change of just Tk 180 per truck can reportedly halt operations at Chattogram port for days, the deeper signal to investors is not the fee itself but the absence of predictability, consultation and coordination.

A tougher, faster and more complex world is approaching, but so are greater opportunities. Bangladesh has the potential and the entrepreneurial energy to seize them. What it needs now is one table where the right institutions sit together, one compass to align decisions and one mechanism that turns good intentions into coherent action.

The interim government has given in-principle approval for the listing of profitable State-Owned Enterprises (SOEs) and multinational companies (MNCs) with government shareholdings on the capital market, marking a significant step towards enhancing market depth and restoring investor confidence.

Initially, steps will be taken to bring 10 profitable companies to the stock market. These are Karnaphuli Gas Distribution Company, Karnaphuli Fertiliser Company, North-West Power Generation Company, Paschimanchal Gas Company, Sylhet Gas Fields, Syngenta Bangladesh, Unilever Bangladesh, Synovia Pharma, Novartis (Bangladesh) and Nestlé Bangladesh.

The decision was finalised at a meeting held yesterday (7 January) at the Secretariat, chaired by Finance Adviser Salehuddin Ahmed. The finance adviser and Investment Corporation of Bangladesh (ICB) Chairman Abu Ahmed briefed journalists after the meeting.

Under the plan, several profitable state-owned enterprises will be directly listed on the capital market, while multinational companies will decide on listing subject to approval from their respective boards of directors.

"We have given our consent from the government side. The process will begin, but the multinational companies have made it clear that they cannot make a final decision without board approval," the finance adviser said.

He noted that the stock market has largely returned to compliance with regulatory frameworks, making it essential now to increase market depth and rebuild investor confidence. "That is why we are taking the initiative to offload shares of fundamentally strong government companies."

Salehuddin added that although similar discussions had taken place in the past, this time the initiative has progressed further. "The ministry has given its consent, and the concerned companies have indicated their willingness to offload shares. We have asked others to move quickly so that the process can start."

Asked whether the listings could be completed within the tenure of the current government, the finance adviser said efforts are under way but cautioned that the process was complex. "We cannot bypass the Companies Act."

'MNCs can't avoid listing'

Abu Ahmed said the decision was made in the public interest and argued that there was no justification for multinational companies avoiding listing in Bangladesh. "If Nestlé can be listed on the Bombay Stock Exchange, what is the problem in Bangladesh?" he said, adding that while Unilever's former GSK unit is listed, its core business remains unlisted, despite the company being among the top listed firms in India, Pakistan and Thailand.

The ICB chairman said multinational companies should be offered incentives or tax concessions if necessary, but warned that higher taxes could be imposed if they chose not to come to the market. "The companies have been given a clear message that people in Bangladesh want to see these good companies listed on the stock exchange."

Referring to Unilever Bangladesh, in which the government holds nearly 40% shares, he said the company was reluctant to offload even 5% of that stake. "Can't the government sell its own shares?" he added.

Amid a prolonged drought in initial public offerings (IPO), the Bangladesh Securities and Exchange Commission (BSEC), the capital market regulator, has sought stronger participation from merchant bankers in accelerating new company listings on the stock market.

In a courtesy meeting with the newly formed committee of the Bangladesh Merchant Bankers Association (BMBA), the regulator assured issue managers of all-out support in facilitating company listings, citing that the commission is now fully prepared to approve IPOs as the new rules are already in effect with several major changes.

Bangladesh's capital market has seen no new IPO approvals over the past year, as companies remained reluctant to go public amid regulatory amendments, economic headwinds and political uncertainty.

According to BSEC data, the last company to receive IPO approval was Techno Drugs on 7 March 2024, which raised Tk100 crore and began trading four months later. Since then, no new IPO has been approved.

The meeting between the regulator and issue managers was attended by BSEC Chairman Khondoker Rashed Maqsood, all commissioners, and members of the BMBA executive committee, including President Iftekhar Alam and General Secretary Sumit Poddar, according to a press release.

Maqsood said, "One of the key responsibilities of merchant bankers is issue management, underwriting, and portfolio management. With the amendment of IPO rules, the opportunities and potential for bringing quality new companies to the capital market have increased manifold."

He said the commission expects the BMBA and its member issue managers to work toward bringing good companies to the capital market. In this regard, the BSEC will always maintain a positive approach and provide all necessary support to ensure the listing of quality companies."

The BSEC chairman also emphasised the importance of enhancing the capabilities of merchant banks in capital formation, portfolio management, and corporate advisory services. He noted that improving the competence, efficiency, and ethics of merchant banks would attract greater interest and participation in the capital market from investors and all other market participants.

A member of BMBA's new committee said, "The commission assured us of all-out support to bring new companies to the capital market and break the long-standing IPO dry spell."

EBL Securities, in its yearly review, noted that the primary market remained frozen in 2025 for over 1.5 years – an unprecedented and the longest dry spell in recent times.

Cancellation of pending IPOs, delays in proposed amendments to the Public Issue Rules, and market uncertainties amid prevailing political conditions have stalled primary market operations, adding further strain to investor sentiment during an already prolonged period of market downturn, it noted.

Stocks rebounded strongly today (7 January) as renewed buying in large-cap shares pushed the Dhaka Stock Exchange's benchmark index close to the 5,000-point threshold, offsetting lingering concerns over weak financial institutions.

The DSEX rose 39 points to close at 4,992, marking a broad-based rally with most sectors ending in positive territory. The advance helped the market claw back part of its recent losses, as investors selectively accumulated fundamentally sound stocks. The blue-chip DS30 index added 17 points to finish at 1,913, driven mainly by gains in banking, telecommunications and pharmaceuticals.

Market breadth was positive, with 193 stocks advancing against 131 decliners, while 64 issues remained unchanged. Turnover inched up to Tk465 crore, suggesting cautious but gradually improving investor participation following recent volatility. Market participants said renewed interest in large-cap and dividend-paying stocks lifted overall sentiment, particularly in the banking sector, which posted the day's strongest performance. Banking shares rose an average of 1.83% on bargain hunting after recent corrections. Telecommunications advanced 0.80%, engineering stocks gained 0.56%, and food and allied companies added 0.49%.

Trading remained concentrated in a limited number of active counters. Orion Infusion led the turnover chart, followed by City Bank, Square Pharmaceuticals, Uttara Bank and Malek Spinning, reflecting strong interest in both financial and manufacturing stocks. Several loss-making companies featured prominently among the top gainers as speculative buying drove sharp price increases. Zeal Bangla Sugar surged nearly 10%, while Shyampur Sugar and Familytex also posted strong gains. Regent Textile jumped more than 8%, underscoring continued risk-taking by a segment of retail investors despite weak fundamentals.

In contrast, troubled non-bank financial institutions faced heavy selling pressure and dominated the list of top losers. International Leasing and Fareast Finance both fell by more than 10%, while FAS Finance, Premier Leasing and Prime Finance also recorded steep declines. Market insiders said confidence in these stocks remains severely eroded following recent remarks by the Bangladesh Bank governor on declaring several NBFIs non-viable.

Positive momentum was also evident at the Chittagong Stock Exchange, where both key indices closed higher. The CSCX index rose 76 points to 8,633, while the CASPI index advanced 108 points to settle at 13,975. Turnover at the port city bourse increased to Tk12.80 crore, signalling improved participation.

Bangladesh's economy might have regained pace in December, signalling a slightly faster pace of economic expansion, supported mainly by continued growth in agriculture, manufacturing and services, according to the Bangladesh Purchasing Managers' Index (PMI).

The December reading of PMI rose by 0.2 points month-on-month to 54.2 from 54 the previous month, said a press release by the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), and the Policy Exchange Bangladesh (PEB). In October, the PMI reading was 61.8.

The PMI is a forward-looking indicator used globally to gauge economic direction. A reading above 50 indicates expansion, while a reading below 50 indicates contraction.

Agriculture posted its fourth consecutive month of expansion and at an accelerated rate, emerging as the strongest-performing sector, the release said.

"The latest PMI readings indicate a marginal expansion of the economy, driven by strong agricultural sector performance," said M Masrur Reaz, chairman and chief executive officer of PEB.

"The latest PMI readings indicate a marginal expansion of the economy, driven by strong agricultural sector performance," said M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh

The latest survey showed stronger expansion in new business, overall activity, employment and input costs. However, order backlogs continued to contract, albeit reflecting demand pressures easing only gradually.

Manufacturing remained in expansion for the 16th straight month, though the pace slowed marginally.

Positive readings were recorded across most key indicators, including new orders, new exports, factory output, input purchases, imports, input prices, employment, and supplier deliveries.

The finished goods index returned to expansion, while order backlogs showed a slower rate of contraction, indicating some improvement in demand conditions.

In contrast, the construction sector slipped back into marginal contraction after three consecutive months of growth.

The new business index contracted at a faster rate, while construction activity and employment posted slower expansion. Input costs rose at a slightly quicker pace.

Order backlogs continued to contract for the fifth consecutive month, though the rate of contraction eased.

The services sector extended its expansion streak to 15 months, with growth marginally faster than in November. Employment and input costs remained in expansion territory.

However, contraction was recorded in new business, business activity and order backlogs, pointing to softer demand conditions in parts of the sector.

Looking ahead, the future business index remained in expansion across agriculture, manufacturing, construction and services, although at slower rates in all sectors.

While manufacturing saw a second consecutive month of slowdown and construction reverted to contraction, sustained optimism persists, with growth momentum expected to continue in the post-election period, said the PEB chairman.

The MCCI and PEB began publishing the PMI in January last year. Initiated by the UK government, it covers over 500 private sector firms across agriculture, manufacturing, construction, and services.

Global oil prices fell on Wednesday and China denounced the US as a bully after President Donald Trump's administration said it had persuaded Venezuela to divert supplies from Beijing and import up to $2 billion worth of embargoed crude.

The deal was in line with Trump's stated aim of controlling the South American Opec member's vast oil reserves after deposing its leader Nicolas Maduro whom it had long cast as a drug-trafficking dictator in league with Washington's foes.

Maduro's Socialist Party allies remain in power in Venezuela, where interim President Delcy Rodriguez is treading a fine line between denouncing his "kidnapping" and kick-starting cooperation with the US under explicit threats from Trump.

TRUMP: OIL MONEY 'WILL BE CONTROLLED BY ME'

He said the US would refine and sell up to 50 million barrels of crude stuck in Venezuela under a US blockade as a first step in his plan to revive a sector long in decline despite sitting on the largest reserves in the world.

"This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!" Trump posted on Tuesday.

Crude prices fell around 1.0 percent on world markets due to anticipated increased supplies.

The deal could initially require cargoes bound for Venezuela's top buyer China to be rerouted as Caracas seeks to unload millions of barrels stranded in tankers and storage.

"The United States' brazen use of force against Venezuela and its demand for 'America First' when Venezuela disposes of its own oil resources are typical acts of bullying," Chinese foreign ministry spokesperson Mao Ning told a press conference.

"These actions seriously violate international law, gravely infringe upon Venezuela's sovereignty, and severely damage the rights of the Venezuelan people."

China, Russia and leftist allies of Venezuela have all denounced the US raid to capture Maduro at the weekend, which was Washington's biggest such intervention in Latin America since the 1989 invasion of Panama to topple Manuel Noriega.

Washington's allies are also deeply uneasy at the extraordinary precedent of seizing a foreign head-of-state, with Trump making a slew of threats of more action - from Mexico to Greenland - to further US interests.

DOZENS DIED DURING CAPTURE OF MADURO

Some details are still sketchy on just how US Special Forces swooped into Caracas by helicopter under darkness on Saturday, smashing Maduro's security cordon and seizing him at the door of a safe room, with no loss of US lives.

Venezuela has not confirmed its total losses, though the army posted a list of 23 of its dead and ally Cuba said 32 members of its military and intelligence services died. The US estimates about 75 fatalities, the Washington Post reported.

Maduro, 63, who had ruled Venezuela since the 2013 death of his predecessor and mentor Hugo Chavez, pleaded not guilty on Monday to narcotics charges in a Manhattan court where he was shackled at the ankles and wore orange and beige prison garb.

Trump appears to be calculating that it is better for stability in Venezuela to work with Maduro's senior allies for now. He is stressing revival of the oil sector with the help of US firms as the priority, not the freeing of political prisoners or a new vote for a democratic transition.

VENEZUELAN OPPOSITION KEPT WAITING

Venezuela's main anti-Maduro figure Maria Corina Machado, who left in disguise to pick up the Nobel Peace Prize in October, wants to return home where she says the opposition would easily win a free vote.

But she is also taking care not to antagonise Trump, saying she would like to personally give him the Nobel prize which he had coveted and which she dedicated to him at the time. She says she is fully on board with his aspirations to make Venezuela a major ally of the US and the energy hub of the Americas.

Banned from running in a 2024 election, Machado's ally Edmundo Gonzalez won overwhelmingly, according to the opposition, the US and various election observers.

While working with Rodriguez and other top Venezuelan officials, the US has warned they must cooperate or risk sharing Maduro's fate.

Hardline Interior Minister Diosdado Cabello, who controls security forces accused of widespread rights abuses, is under particular scrutiny, sources told Reuters.

The US is also closely watching Defense Minister Vladimir Padrino, who like Cabello is under a US drug trafficking indictment and has a multi-million-dollar bounty on his head.

Rodriguez herself is under US sanctions, with her foreign financial assets identified as potential leverage, one source briefed on US administration thinking said.

The US is also pressuring the interim Venezuelan government to expel official advisers from China, Russia, Cuba and Iran, the New York Times reported.

Japanese automakers are losing market share in Southeast Asia as Chinese rivals ramp up local production to drive electric vehicle sales in the region.

In response, Japanese car companies have been scaling back production in Thailand one after another. This could deal a blow to supply chains in the Southeast Asia region, which is home to more than 2,700 Japanese parts manufacturers.

Market share could fall below 70 percent.

At the Thailand International Motor Expo, which was held in Bangkok in November and December, Toyota Motor Corp. unveiled the latest edition of its Hilux line of pickup trucks, which recently underwent a full overhaul for the first time in a decade. In addition to improving the fuel efficiency of the diesel engine models, the company has added an EV model to the lineup. It has already begun accepting orders.

In Thailand, pickup trucks are regarded as the "national car," and the Hilux, which is mainly produced in the country, has enjoyed robust popularity there.

However, during a press conference, Noriaki Yamashita, president of Toyota Motor Thailand Co., said with a stern expression, "We want to protect our supply chains by increasing sales."

Thailand accounts for nearly 20 percent of the Southeast Asian auto market. However, the combined share of the Thai market held by nine Japanese automakers dropped to 69.8 percent for the first 10 months of 2025, 6.6 percentage points down from the same period in 2024.

These companies maintained a market share in the high 80 percent range to 90 percent throughout the 2010s, but this plunged to 77.8 percent in 2023. It is even possible that it will be below 70 percent for the entirety of 2025.

In Indonesia, which accounts for about 30 percent of the Southeast Asian auto market, Japanese automakers also saw their market share fall below 90 percent in 2024 and drop even further, to 82.9 percent, for the first 10 months of 2025.

Competition between Japanese and local automakers is intensifying in Vietnam.

The aggressive expansion of Chinese automakers, such as BYD, into Southeast Asian countries, including Thailand and Indonesia, since 2022 has been a major factor in Japanese automakers' sudden loss of ground.

By greatly bringing down the price of EVs, Chinese car companies have broken into what was once a Japanese stronghold, taking market share of over 20 percent in Thailand. Chinese automakers have also ramped up EV production at new plants in Thailand and are fiercely competing with Japanese firms even in Indonesia.

Under the pressure of this Chinese assault, Japanese automakers are scaling back their output in Thailand. Honda Motor Co. will consolidate its two finished-vehicle plants in the country into a single location in 2026 at the earliest. Mitsubishi Motor Corp. also plans to suspend production at one of three plants in 2027.

According to data analysis firm MarkLines Co., of 2,792 Japanese parts manufacturers operating in Southeast Asia, nearly half are based in Thailand. More Japanese firms operate in Southeast Asia than in China or North America, and they have leveraged strong sales networks to build robust regional supply chains.

Thailand serves as a hub from which these Japanese firms can export goods to other Southeast Asian nations. However, some subcontractors have begun finding it more difficult to maintain their local production bases as orders have decreased due to finished-vehicle plants operating at lower rates, a source from a Japanese bank said.

Japanese automakers are beginning to boost sales by expanding their lineups of hybrid vehicles, a segment where they excel. However, if Chinese automakers continue their offensive, the impact on the parts suppliers could spread further.

Bidisha International Limited, a corporate director of Rangpur Dairy and Food Products Limited (RD Food), has announced plans to sell an additional 15 lakh shares at the prevailing market price through the Dhaka Stock Exchange (DSE) within the next 30 working days.

The disclosure was filed with the DSE today (7 January), indicating that the shares will be sold in the public market. Following the disclosure, its share price rose by 1.92% to reach at Tk21.20.

This follows an earlier announcement on 24 December, when Bidisha International said it would offload the same number of shares from its larger holding of 51.53 lakh shares.

That earlier sale, however, has yet to be completed, according to market disclosures. Following partial adjustments, the corporate director currently holds 36.53 lakh shares of RD Food.

The planned divestment coincides with a series of concerns raised by the company's external auditor over financial reporting practices and liquidity pressures.

In a qualified opinion, Faruk Ahmed, partner at Khan Wahab Shafique Rahman & Co, Chartered Accountants, highlighted discrepancies in deferred tax calculations.

The auditor said that RD Food applied an outdated statutory tax rate of 15% instead of the applicable 22.5% for the year, leading to an under-provision of deferred tax of approximately Tk2.63 crore. This miscalculation directly affected the company's reported earnings per share (EPS).

According to the audited financial statements, RD Food posted a net profit of Tk4.61 crore for the year, translating into an earnings per share of Tk0.61. This represented a sharp decline of roughly 40% compared to the previous year's profit of Tk7.68 crore and EPS of Tk1.01.

The company attributed the fall in earnings to rising import costs, persistent inflationary pressures and higher bank borrowing rates.

The auditor also flagged unresolved issues involving unclaimed dividends and IPO subscription refunds. An amount of Tk57.37 lakh in IPO subscription funds remained unadjusted under non-claimed general share applications, a situation the auditor said overstated the company's capital position.

In addition, discrepancies were identified in the handling of unclaimed dividends—amounts approved for distribution but not collected by shareholders within the prescribed timeframe.

Under regulatory requirements, unclaimed dividends outstanding for more than three years must be transferred to the Capital Market Stabilisation Fund (CMSF).

The auditor reported that RD Food had unclaimed dividends amounting to Tk18.89 crore. However, only Tk1.94 lakh was found in the designated bank account. While Tk4.04 lakh had been transferred to the CMSF, the remaining balance that should have been available was missing and had instead been used for operational purposes.

The Dhaka Stock Exchange (DSE) has cancelled its previously approved transfer of 1 crore shares belonging to two directors of Golden Harvest Agro Industries, a listed company, to the non-bank financial institution IPDC.

The DSE had initially approved the share transfer on 10 December last year under DSE Listing Regulations, which govern transfers in cases involving confiscation or loan defaults.

Reversing its previous decision, the DSE, in two separate disclosures issued today (6 January), said it had withdrawn its approval for the transfer of 90 lakh shares held by sponsor-director Ahmed Rajeeb Samdani and 10 lakh shares held by director Nadia Khalil Choudhury to IPDC Finance, a non-bank financial institution.

DSE's previous disclosures stated that the total 1 crore shares – 90 lakh belonging to Ahmed Rajeeb Samdani and 10 lakh held by Nadia Khalil Choudhury – will be transferred within 30 working days.

Today, shares of Golden Harvest closed at Tk10.70 each on the DSE. Based on the current market price, the value of 1 crore shares is worth approximately Tk10.70 crore.

As per the financial statement, Golden Harvest has an outstanding loan amounting to Tk34.86 crore with IPDC Finance.

Golden Harvest, one of the pioneers in frozen food manufacturing in Bangladesh, got listed on the bourses in 2023.

According to January's shareholding report, Samdani held 4.73 crore shares, representing a 21.95% stake in the company, while Choudhury held 43.16 lakh shares, or 2%.

Of the total shares, sponsor-directors hold 30.42% stake in the company, while institutional investors hold 36.44%, foreign shareholders 0.22% and the general public hold 32.92%, as of December 2025.

Power and Energy Adviser Muhammad Fouzul Kabir Khan has ruled out any supply shortage of liquefied petroleum gas (LPG), saying recent disruptions in cylinder availability were driven by market manipulation rather than problems with imports or production.

Speaking after a meeting of the Advisers Council Committee on Government Purchase at the Secretariat today (6 January), Fouzul said the LPG market in Bangladesh was overwhelmingly controlled by private operators.

"About 98% of the LPG business in Bangladesh is controlled by the private sector. Government involvement is limited to around 2%, where propane and butane are imported and bottled," he said, reports BSS.

The adviser said the recent abnormal price hike and reports of temporary scarcity were the result of "collusion and deliberate manoeuvring" by wholesalers and retailers.

He alleged that some operators had withheld supplies in anticipation of higher prices after Bangladesh Energy Regulatory Commission's (BERC) latest adjustment, adding that LPG prices had risen by more than Tk50 per cylinder in recent weeks, which encouraged certain market players to take advantage of the situation.

He also rejected claims that the situation stemmed from any failure in supply. "From the import side, there is no reason for a crisis," Fouzul said, adding that LPG imports had increased compared to the previous month.

He said the government was closely monitoring the situation and would take all necessary measures to prevent further manipulation of the LPG market. He also noted that regulatory authority over LPG pricing lies primarily with BERC.

Fouzul further said a series of meetings had already taken place, involving the energy secretary and the BERC chairman, followed by discussions between the energy secretary and the LPG Operators Association of Bangladesh.

To address the issue, the government has launched enforcement drives across the country. Mobile courts have been deployed at district level to prevent hoarding, forced shop closures and artificial supply disruptions.

Fouzul said the cabinet secretary had instructed district administrations to take firm action. The matter was also discussed at the most recent law and order committee meeting, with the participation of police and other law enforcement agencies.

Monitoring teams from the Energy Division have been sent to Chattogram, the main hub for LPG imports and bottling, while inspections are also under way in Dhaka and other parts of the country.

"We believe this was a temporary situation and expect prices and supply to gradually normalise," he said.

Fouzul also referred to potential challenges in global shipping, noting that sanctions on certain vessels had created complications in international transport. However, he said these issues had not affected LPG supplies in the current month.

"There is no immediate impact, but we are closely monitoring future risks," he said.

Bangladeshi nationals applying for US B1/B2 (business and tourist) visas will be required to submit a visa bond from 21 January 2026, after Bangladesh was included in a new pilot programme announced by the US Department of State.

According to information published on travel.state.gov, Bangladesh is among dozens of countries whose citizens have been identified as subject to visa bond requirements under a Temporary Final Rule (TFR) introduced in line with Section 221(g)(3) of the US Immigration and Nationality Act (INA).

Under the programme, any Bangladeshi passport holder found otherwise eligible for a B1/B2 visa must post a bond of $5,000, $10,000, or $15,000. The bond amount will be determined by a consular officer at the time of the visa interview and is based on overstay risk assessments using B1/B2 overstay rates from the US Department of Homeland Security's Entry/Exit Overstay Report.

Applicants directed to post a bond will be required to submit the Department of Homeland Security's Form I-352 (Immigration Bond) and agree to the bond terms through the US Department of the Treasury's official online payment platform, pay.gov. The requirement applies regardless of where the visa application is submitted.

The State Department has cautioned applicants not to submit Form I-352 or pay any bond amount unless specifically instructed by a consular officer. Payments made without official direction will not be refunded, and the US government has warned that it bears no responsibility for money paid through third-party websites.

The department has also clarified that posting a bond does not guarantee visa issuance.

As an additional condition, visa holders who post a bond must enter and exit the United States only through designated ports of entry: Boston Logan International Airport (BOS), John F Kennedy International Airport (JFK), and Washington Dulles International Airport (IAD). Failure to comply may result in denied entry or an unrecorded departure.

The visa bond will be automatically cancelled and refunded if the Department of Homeland Security records that the traveller departs the US on or before the authorised stay period, does not travel to the US before the visa expires, or is denied admission at the port of entry.

However, the bond may be forfeited if authorities determine a breach of its conditions. Situations that could trigger a review include overstaying beyond the authorised period, failing to depart the US, or applying to adjust status from a non-immigrant visa, including seeking asylum.

Cases involving potential breaches will be referred by the Department of Homeland Security to US Citizenship and Immigration Services for determination.

Bangladesh joins several other countries, including Nigeria, Nepal, Venezuela, and Uganda, under the visa bond pilot programme, which aims to curb visa overstays and strengthen compliance with US immigration rules.

Bangladesh Bank has doubled the ceiling on home loans, allowing eligible banks to offer up to Tk4 crore to a single borrower for house purchases. Until now, the maximum limit for housing finance stood at Tk2 crore.

The new limit was announced in a circular issued today (6 January) by the central bank's Banking Regulation and Policy Department (BRPD) and sent to managing directors and chief executives of all banks.

According to the circular, banks with non-performing loans (NPLs) of up to 5% in their housing finance portfolios will be allowed to lend a maximum of Tk4 crore to an individual customer.

The loan-to-equity ratio will remain unchanged at 70:30. This means that if a flat costs Tk1 crore, a bank can provide a maximum home loan of Tk70 lakh, with the borrower covering the remaining 30% from their own funds.

Banks with housing finance NPLs above 5% but not exceeding 10% will be allowed to offer home loans of up to Tk3 crore. However, banks where NPLs in house finance exceed 10% will continue to be restricted to the previous ceiling of Tk2 crore.

Arup Haider, deputy managing director and head of retail banking at City Bank, welcomed the decision to raise the home loan limit from Tk2 crore to Tk4 crore.

He said it would have been more helpful if the loan-to-equity ratio had been revised to 80:20 instead of remaining at 70:30.

"If the ratio stays at 70:30 for a Tk4 crore loan, a borrower would need to inject Tk1.20 crore as equity, which could be challenging for many customers," he explained.

"This circular is positive for the banking sector. At the very least, it is certainly an improvement compared to what existed before," he added.

A deputy managing director of a private bank noted that the housing finance limit was last raised back in 2019 – from Tk1.2 crore to Tk2 crore.

"This [ the new limit] can be seen as a positive step, as flat prices have risen due to inflation, and customers now want higher loan amounts to match current market prices," the banker told The Business Standard.

Caracas and Washington have reached a deal to export up to $2 billion worth of Venezuelan crude to the United States, US. President Donald Trump said on Tuesday, a flagship negotiation that would divert supplies from China while helping Venezuela avoid deeper oil production cuts.

The agreement is a strong sign that the Venezuelan government is responding to Trump's demand hat they open up to US. oil companies or risk more military intervention. Trump has said he wants interim President Delcy Rodriguez to give the US and private companies "total access" to Venezuela's oil industry.

Venezuela has millions of barrels of oil loaded on tankers and in storage tanks that it has been unable to ship due to a blockade on exports imposed by Trump since mid-December.

The blockade was part of rising US pressure on the government of Venezuelan President Nicolas Maduro that culminated in US forces capturing him this weekend. Top Venezuelan officials have called Maduro's capture a kidnapping and accused the US of trying to steal the country's vast oil reserves.

Venezuela will be "turning over" between 30 and 50 million barrels of "sanctioned oil" to the US, Trump said in a social media post.

"This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!," he added.

US Energy Secretary Chris Wright is in charge of executing the deal, Trump said, adding that the oil will be taken from ships and sent directly to US ports.

Supplying the trapped crude to the US could initially require reallocating cargoes originally bound for China, two sources had told Reuters earlier on Tuesday. The Asian country has been Venezuela's top buyer in the last decade and especially since the United States imposed sanctions on companies involved in oil trade with Venezuela in 2020.

"Trump wants this to happen early so he can say it is a big win," an oil industry source said.

Venezuelan government officials and PDVSA did not provide comment.

CHEVRON IN CONTROL OF VENEZUELAN OIL FLOWS TO US

US crude prices fell more than 1.5% after Trump's announcement, with the agreement expected to increase the volume of Venezuelan oil exported to the US. That flow of oil is currently controlled entirely by Chevron (CVX.N), opens new tab, PDVSA's main joint venture partner, under a US authorisation.

Chevron, which has been exporting between 100,000 and 150,000 barrels per day (bpd) of Venezuelan oil to the US, is the only company that has been loading and shipping crude without interruption from the South American country in recent weeks under the blockade.

It was not immediately clear if Venezuela would have any access to proceeds from the supply. Sanctions mean PDVSA is excluded from the global financial system, its bank accounts are frozen and it is blocked from executing transactions in US dollars.

Venezuela has been selling its flagship crude grade, Merey, at around $22 per barrel below Brent for delivery at Venezuelan ports, giving a value for the deal at up to $1.9 billion.

Rodriguez, sworn in as interim president on Monday, is herself under US sanctions imposed in 2018 for undermining democracy.

TALKS INVOLVE POSSIBLE AUCTIONS WITH US BUYERS

Venezuelan and US officials this week discussed possible sales mechanisms, including auctions to allow interested US buyers to bid for cargoes, and issuing US licenses to PDVSA's business partners that could lead to supply contracts, two sources told Reuters.

Those licenses have in the past allowed PDVSA's joint venture partners and customers, including Chevron, India's Reliance (RELI.NS), China National Petroleum Corporation (CNPC) and European Eni (ENI.MI), and Repsol (REP.MC), to have access to Venezuelan oil to refine or to resell to third parties.

This week, some of those companies have begun making preparations for receiving Venezuelan cargoes again, two separate sources said.

The US and Venezuela have also discussed if Venezuelan oil can be used in the US Strategic Petroleum Reserve in the future, one of the sources said. Trump did not refer to this possibility.

INCREASED OIL FLOWS WOULD BE 'GREAT NEWS'

US Interior Secretary Doug Burgum said on Tuesday that an increased flow of Venezuelan heavy oil to the US Gulf would be "great news" for job security, future gasoline prices in the US and for Venezuela.

"Venezuela has an opportunity now to actually have capital come in and rebuild their economy and take advantage," he told Fox News, when asked about talks between the governments on oil exports. "With American technology, American partnership, Venezuela can be transformed."

US refineries on the Gulf Coast can process Venezuela's heavy crude grades and were importing some 500,000 barrels per day (bpd) before Washington first imposed energy sanctions on Venezuela.

PDVSA has already had to cut production due to the embargo, because it is running out of storage for the oil. Without a way to export oil soon, it would have to cut production more, one of the sources said.

Oil traders reacted to news of the deal talks on Tuesday. Differentials for some heavy oil grades in the US Gulf slipped around 50 cents per barrel on Tuesday on the prospect of more Venezuelan supplies.

India's competition watchdog has found market leaders Tata Steel, JSW Steel, state-run SAIL and 25 other firms breached antitrust law by colluding on steel selling prices, a confidential document shows, putting the companies and their executives at risk of hefty fines.

The Competition Commission of India (CCI) has also held 56 top executives, including JSW's billionaire Managing Director Sajjan Jindal, Tata Steel CEO T.V. Narendran and four former SAIL chairpersons, liable for price collusion over varying periods of time between 2015 and 2023, according to a CCI order dated October 6, which has not been made public and is being reported for the first time.

JSW declined to comment, while Tata Steel, SAIL, and the executives did not respond to Reuters queries. The CCI also did not respond to requests for comment.

The CCI investigation - the most high-profile case involving the steel industry - started in 2021 after a group of builders alleged in a criminal case brought to a state court that nine companies were collectively restricting the supply of steel and increasing prices.

Reuters reported in 2022 the watchdog raided some small steel companies as part of an investigation into the industry.

The probe was later expanded to as many as 31 companies and industry groups, as well as dozens of executives, the CCI's October order, reviewed by Reuters, shows. Under CCI rules, details of cases related to cartel-like activity are not made public before they have concluded.

The CCI investigation has "found the conduct of the parties to be in contravention" of Indian antitrust law and "certain individuals have also been held liable," the order stated.

The findings are a critical stage of any antitrust case.

They will be reviewed by top CCI officials and companies and executives will also have the opportunity to submit any objections or comments in a process that is likely to take several months given the scale of the investigation.

The CCI will then issue its final order, which will be released publicly.

RISK OF SIGNIFICANT FINES

India is the world's second-largest producer of crude steel, and demand for the alloy has been rising as infrastructure spending has increased in the fast-growing major economy.

JSW Steel has 17.5% of the Indian market, Tata Steel 13.3% and SAIL 10%, according to data from commodities consultancy BigMint.

Global inflows to ESG funds peaked in 2021 at $645 billion. But that was back when the Biden administration was encouraging investors to put

In the last fiscal year to March 2025, JSW Steel reported standalone revenues of $14.2 billion, while Tata Steel's were $14.7 billion.

The CCI is empowered to impose penalties on steel companies of up to three times their profit or 10% of turnover, whichever is higher, for each year of wrongdoing. Individual executives can also be fined.

JSW and SAIL have denied the allegations before the CCI, according to two people familiar with the matter, who declined to be named because the case was confidential.

One of them said JSW had also submitted its response to the CCI, and denied the allegations.

At 0852 GMT, shares in JSW Steel extended losses to 1.33%, SAIL was down 3.2%, and Tata Steel turned negative and fell as much as 0.7%. The main Nifty Metal Index also turned negative in Mumbai trade.

WHATSAPP CHATS REVIEWED

The CCI opened the case after Coimbatore Corporation Contractors Welfare Association alleged in a case it brought before a Tamil Nadu state court in 2021 that steel companies had hiked prices by 55% during a six-month period to March 11 that year, and were artificially boosting prices by restricting supply to builders and consumers.

After the public prosecutor said the issue was an antitrust matter, the judge then ordered the CCI to take "appropriate action" on the complaint of the association, whose members are involved in road and highway construction.

Other companies in the CCI document that were found to have allegedly colluded on prices, were Shyam Steel Industries, state-run Rashtriya Ispat Nigam and other smaller-sized firms. Shyam and Rashtriya did not respond to Reuters queries.

The CCI has asked the steel companies to submit their audited financial statements for the eight financial years to 2023, the October order showed. The watchdog typically seeks such details to calculate potential penalties.

While the October order did not detail the evidence analysed, an internal CCI document from July 2025 said officials had uncovered WhatsApp messages exchanged between regional industry groups of steel product makers that suggested wrongdoing.

The messages "indicate that they are involved in fixing the prices/cutting down production," said the July document.