Bangladesh's economy is expected to grow by 4.5 per cent this fiscal year, a little below earlier projections by Oxford Economics, as it believes the second-quarter growth ending December slowed alongside poor export growth in key markets.

However, the growth in fiscal year 2025-26 picks up above 3.49-percent mark determined for the past fiscal year by final official count.

Founded in 1981, Oxford Economics is a global economic advisory firm providing forecasting and analytical services covering more than 200 countries and a wide range of industries and cities.

"We've downgraded our GDP-growth forecast for Bangladesh to 4.5 per cent in FY2025-26 from 4.7 per cent previously," it said Thursday.

The agency predicts activity should continue to recover in FY2026-27, albeit at a relatively moderate pace of 5.7 per cent year on year.

Following a slowdown in FY2024-25, economic momentum improved temporarily in the third quarter of 2025, supported by stronger activity in manufacturing and construction.

However, it says trade data indicate a renewed loss of momentum in the fourth quarter ending December, with goods exports to the United States and Germany falling by 4.1 per cent and 12.8 per cent year on year, respectively.

Inflation remained stubbornly high, with price pressures intensifying since October despite the fact the central bank has been pursuing a tight monetary stance.

Consumer prices rose 8.6 per cent year on year in January.

"Although wage growth remained broadly stable at around 8.0 per cent, stronger remittance inflows provided some support to household incomes."

The Oxford Economics says February's general election, which delivered a decisive victory for the Bangladesh Nationalist Party (BNP), along with the passage of a constitutional reform referendum, could support business confidence.

The firm expects the new administration to maintain its reform agenda through continued engagement with the International Monetary Fund.

"A peaceful transition of power and policy continuity are expected to provide near-term support to economic sentiment," says Oxford Economics report.

However, the outlook for consumer spending remains uneven as wage increases continue to lag behind inflation, eroding real incomes.

Private investment is also likely to remain constrained by restrictive monetary policy.

Bangladesh Bank has kept policy rates unchanged, maintaining a tight stance aimed at containing inflation and rebuilding foreign-exchange reserves.

The restrictive policy environment has helped stabilise reserves, which have risen to about $30 billion, from roughly $17 billion in 2024, marking progress under the IMF-supported reform programme.

The central bank has indicated that inflation needs to fall below 7.0 per cent before policy easing can be considered.

External risks remain significant.

While lower US tariffs could support exports in the near term, the gradual erosion of trade preferences associated with Bangladesh's graduation from least-developed-country status poses a challenge to medium-term export prospects.

Some export orders may be front-loaded ahead of the transition.

Meanwhile, the country's economy expanded by 3.49 per cent in fiscal year 2024-25, as tight monetary policy and restrained government spending weighed on activity, while inflationary pressures remained elevated, says Bangladesh Bureau of Statistics (BBS).

According to final estimates released Thursday by the statistical bureau, gross domestic product (GDP ) reached US$456 billion, with growth slowing from 4.22 per cent in FY2023-24 and falling short of the provisional estimate of 3.97 per cent.

The weak performance followed an unprecedented mass uprising in July-August 2024 that disrupted economic activity and forced the temporary closure of many factories during the fiscal year.

Sluggish consumer demand and subdued private investment also damped growth, reflecting persistently high inflation and prolonged political uncertainty during the period under review.

"The disappointing end to the year largely reflected a self-inflicted drag from consumption and investment following higher inflation and political uncertainty," says Dr Zahid Hussain, an independent economist, about the deceleration reasons.

He adds that the contraction in public spending is expected to reverse by FY2027 as political uncertainty has been eased following polls just held this month.

The slowdown in output occurred alongside continued price pressures.

External projections had been more optimistic.

Global agency S&P Global Ratings forecast growth of 3.97 per cent for the year, while Moody's had projected around 4.5 per cent before revising its outlook downward.

Sectoral data show uneven performance across the economy.

Agricultural output expanded by 2.82 per cent, up 0.63-percentage points from a year earlier.

Industrial growth slowed to 3.35 per cent, down 0.63-percentage points, while the services sector contracted by 4.35 per cent, 0.16-percentage points lower than in the previous year.

Expenditure-based measures indicate weakening macroeconomic fundamentals.

The three main components of GDP -- investment, domestic savings and national savings -- all declined compared to the previous fiscal year.

Total investment fell to 28.54 per cent of GDP, from 30.70 per cent a year earlier.

Domestic savings declined to 21.98 per cent, from 23.96 per cent, while national savings, which include remittance income, dropped to 27.67 per cent from 28.42 per cent despite the fact that after the August 05, 2024 uprising the remittances were robust.

Per-capita income under the final estimate stood at $2,769, reflecting the slower pace of economic expansion.

Bangladesh’s economy grew 3.49 percent in the fiscal year 2024-25 (FY25), the slowest expansion in at least three years, owing to weaker performances in the agriculture and services sectors.

The growth is lower than the provisional estimate of 3.97 percent made previously by Bangladesh Bureau of Statistics (BBS), which released the finalised data on gross domestic product (GDP) yesterday.

In FY24, the economy grew 4.22 percent, said the national statistical office.

The data shows that only the industrial sector posted faster growth in FY25 than in the prior year.

Between July 2024 and June 2025, the country’s factory output rose 3.71 percent, up 0.20 percentage points from FY24.

Agriculture, the second-largest employing sector, grew just 2.42 percent, down from 3.30 percent a year earlier.

Services, the biggest contributor to GDP, expanded 4.35 percent, easing from 5.09 percent in FY24.

The size of the economy reached $456 billion, up from $450 billion a year earlier. Per capita income edged up to $2,769 from $2,738.

Sluggish growth is expected to continue into the current fiscal year. The International Monetary Fund projects 4.7 percent expansion in FY26, the World Bank 4.6 percent, and the Asian Development Bank (ADB) 4.7 percent -- all below Bangladesh’s pre-pandemic trend.

The ADB trimmed its projection from 5 percent in September, citing weak investment ahead of the general election and slower export growth.

Economists said the FY25 slowdown is owed to a combination of deep-rooted internal weaknesses and persistent external shocks.

“This is certainly due to both internal and external factors,” said Prof Selim Raihan, executive director of the South Asian Network on Economic Modeling (Sanem). “One of the biggest reasons was the political transition. Because of that, and the related developments in the banking sector, business confidence dropped sharply.”

He noted that the erosion of confidence discouraged fresh investment while banks turned cautious on lending. “Credit growth declined considerably. Altogether, this reflects a downward shift in investment.”

Exports also underperformed, even weakened, he said. “Only remittances have performed somewhat consistently.”

Describing the macroeconomic picture as unusual, the Sanem executive director noted, “The economy is depressed, while inflation remains high.”

High inflation has eroded purchasing power, weakening consumer demand across all components of GDP – household consumption, public spending, investment and exports, he explained.

Although a new government has taken office, Raihan warned that FY26 may follow a similar pattern and that recent turbulence at the Bangladesh Bank could further dampen investor sentiment. “I do not expect a major surge in investment at this moment.”

The economist noted that public spending has remained subdued.

“February has already ended, and only about four months remain in the fiscal year. It is unlikely that public spending will pick up significantly within this period,” Raihan said.

“Even if investor confidence begins to return, it will take time for that to be reflected in actual economic indicators,” he added.

Md Deen Islam, a professor of economics at the University of Dhaka, said businesses and investors may delay commitments until they see how policy priorities evolve.

Such caution, he warned, could weigh on short-term activity. “That can slow economic activity in the short run, even if the government implements sound policies.”

He stressed that clarity and stability will be critical going forward.

“To support stronger growth, policy clarity, macroeconomic stability, and investor confidence will be essential. This means steady fiscal management, predictable regulatory frameworks, and efforts to improve credit flow and export performance,” he said.

“If these areas are strengthened, growth could accelerate in the medium term. Conversely, if uncertainty persists, growth may remain subdued despite changes in political leadership,” he added.

To revive growth, Islam stressed the need to restore macroeconomic stability and rebuild investor confidence.

There are tentative signs of a pickup. The economy expanded 4.5 percent in the first quarter of FY26, up sharply from 2.58 percent in the same period a year earlier, driven mainly by industrial and agricultural activity.

When Ahsan Habib Mansur assumed office in the second week of August 2024 following a mass uprising, the financial reality was precarious.

Cheques of some banks were bouncing, many ATMs across the country were shuttered while others were awaiting routine cash supply, and the balance sheets of nearly a dozen banks were hollowed out.

Remittances and export receipts were lacklustre, commodity prices were on a wild ride, and the country had barely enough dollars to cover three months of essential imports.

By the time he left office yesterday and subsequently announced his abrupt resignation, the financial situation had somewhat stabilised, though many economic wounds were yet to be fully healed.

During his roughly 18-month tenure as the governor of the Bangladesh Bank (BB), Ahsan H Mansur, a former International Monetary Fund (IMF) economist, was able to diagnose the economy’s ills, but he could not complete his reform agenda, according to economists and top bankers.

When Mansur took charge, gross reserves were $25.92 billion, and reserves as per the BPM6 count were $15 billion. Understandably, foreign exchange management was a particular area of his focus.

Mansur worked to strengthen reserves while bringing a more market-based exchange rate, a condition linked to the ongoing loan package by the IMF.

By the time he stepped down, gross reserves had risen to $35.04 billion, while the amount was $30.3 billion as per the BPM6 count. And the exchange rate has stabilised at Tk 122.20 per dollar.

Controlling inflation was another priority. It was 10.49% in the month he took office. He pursued a tight monetary policy and raised the policy rate to 10 percent swiftly after assuming office.

However, the former governor had to inject funds into ailing banks to protect depositors.

Inflation fell to 8.58 percent by January 2026, though supply-side constraints meant the decline fell short of expectations.

The banking sector presented a deeper challenge. Around a dozen of banks were sinking under heavy non-performing loans, while non-bank financial institutions were refusing to return deposits. Many bank boards were heavily influenced by politically affiliated figures.

Many bank directors reportedly fled the country with huge funds. Mansur responded with forensic audits to determine the real health of the sector and initiated reforms, though deep restructuring remained incomplete.

As long-buried toxic loans surfaced, the volume of non-performing loans (NPL) reached Tk 6.44 lakh crore in September last year from Tk 2.11 lakh crore in June 2024.

As part of his financial mess cleanup agenda, the former governor oversaw the merger of five ailing shariah-based banks, enacted the Bank Resolution Ordinance and the Deposit Insurance Ordinance. He also pushed for amendments to the Bangladesh Bank Order and the Bank Company Act, though those got stuck at the finance ministry.

While his public warnings on bank weaknesses initially spooked depositors, the measures ultimately strengthened transparency and governance.

Mustafa K. Mujeri, former director general of BIDS and ex-chief economist at the Bangladesh Bank, said, “When Mansur assumed office, it was a challenging time as the whole financial sector was on the edge of a cliff.”

“The sector had been looted. Mansur had to spend considerable time uncovering the true state of affairs,” he added.

Fahmida Khatun, executive director at local think tank Centre for Policy Dialogue (CPD), echoed similar views.

She said Mansur inherited a fragile banking sector with many banks burdened by massive non-performing loans. Bangladesh Bank had functioned largely as an implementing agency of the government, and the sector’s true health had been disguised.

“He had to run forensic audits to review asset quality and find the real health of the banking sector,” she said.

Mustafizur Rahman, distinguished fellow at CPD, said that the outgoing BB governor made serious efforts to reform the banking sector and restore discipline during a critical period for the economy.

“His initiatives included restructuring bank boards, promoting mergers among weak institutions, setting up an asset recovery company for distressed assets and curbing illicit financial outflows, although some changes were not fully endorsed by the interim government.”

Rahman described these steps as essential not only for immediate stability but for laying the foundation for long-term governance in the sector.

Speaking on condition of anonymity, a former senior banker said Mansur demonstrated “earnest dedication and great sincerity” in his duties.

He described the former BB governor as an accomplished economist who stabilised fragile macroeconomic indicators amid post-Covid pressures, fallout of Russia-Ukraine war, and volatile global commodity prices.

“From a very dire situation, Mansur improved foreign exchange reserves and helped stabilise the taka-US dollar exchange rate,” the banker said. He added that Mansur also managed overdue petroleum and gas import liabilities and cleared remittance backlogs for airlines and shipping firms.

Finance Minister Amir Khosru Mahmud Chowdhury has sought suggestions from business leaders on why the cost of doing business is rising, what bureaucratic obstacles they face and what measures are needed to ease operations.

He discussed the issues today (25 February) during a meeting with a delegation of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by its President Mahmud Hasan Khan Babu, at the Secretariat.

According to three garment sector leaders present at the meeting, the minister asked them to submit proposals outlining specific problems and possible solutions.

After the meeting, BGMEA Director Faisal Samad told The Business Standard, "We told the finance minister that instead of incentives, we need policy support to simplify business procedures and reduce costs. In response, he asked us to identify the problems and suggest ways to address them."

He said the association would submit a policy paper within a week outlining measures to reduce the cost of doing business.

Requesting anonymity, another BGMEA director said they informed the minister that customs-related costs have increased compared to before.

"The government has increased port charges, and illegal payments at customs have also risen," he alleged.

Businesses have long complained about harassment and demands for unofficial payments by some customs officials, particularly in matters related to bond licences, raw material entitlements, utility permissions and audits.

Another BGMEA leader present at the meeting said the minister questioned how much more support the garment sector should receive, noting that other sectors often say the industry already receives substantial government benefits.

At the meeting, BGMEA leaders said nearly one year's worth of incentive payments, amounting to around Tk8,000 crore, remain pending and urged the government to release the funds quickly.

They also said that due to two major holiday periods over the next two months, elections and Eid-ul-Fitr, factories would operate for only 35 days, making it difficult to manage working capital.

The association sought a loan facility of around Tk7,000 crore to cover one month's wages, to be repaid over 15 months.

According to the business leaders, the finance minister responded positively to the proposal.

China has expressed interest in expanding investment in Bangladesh, focusing on job creation and industrial revival, during a meeting between Chinese Ambassador Yao Wen and Commerce Minister Khandaker Abdul Muktadir at the Secretariat today (25 February).

At the meeting, the government formally sought Chinese investment in several closed fertiliser factories struggling with prolonged gas shortages.

The commerce minister said Bangladesh has six fertiliser plants whose production has been repeatedly disrupted due to inadequate gas supply.

"We are searching for investors capable of importing LNG to restart fertiliser production. The government will purchase the fertiliser produced," Muktadir said, outlining a potential pathway to revive idle capacity and stabilise supply.

The minister also invited Chinese investors to explore opportunities in Bangladesh's closed jute mills, emphasising the sector's potential for modernisation and employment generation.

Highlighting broader areas of cooperation, Muktadir said China could assist Bangladesh in digital infrastructure development, establishment of e-learning centres, and advancement of artificial intelligence technologies.

He noted that such partnerships would further deepen bilateral economic ties.

Ambassador Yao Wen congratulated the BNP on securing a decisive mandate in the 13th national parliamentary election and congratulated Muktadir on assuming office as commerce minister.

He said China is keen to increase investment flows into Bangladesh and voiced optimism about economic collaboration under the newly elected government.

The ambassador also extended an invitation to the commerce minister to visit China.

State Minister for Commerce Md Shariful Alam, Additional Secretary (Export) Md Abdur Rahim Khan, and Additional Secretary (FTA) Ayesha Akter were present at the meeting.

Newly appointed Bangladesh Bank Governor Md Mostaqur Rahman has said restoring trust and discipline in the country's banking sector will be his foremost priority as he assumes office.

"Inshallah, first I will sit at the bank and hold discussions with everyone. With everyone's cooperation, the main task will be trust building in the banking sector and bringing back greater discipline," he told bdnews24.com in an immediate reaction today (25 February).

He acknowledged the efforts of his predecessor, Dr Ahsan H Mansur, in restoring order in the sector and expressed his intention to further strengthen those initiatives.

Mostaqur also said reducing interest rates would be among his key priorities to support economic growth.

"As you know, the economy and the banking sector are facing challenges. Taking on this responsibility at this time is itself a challenge," he said.

He noted that credit growth has slowed in recent months and emphasised the need to lower interest rates to help stimulate economic activity.

"Our priority will be to work first. We do not want a situation where we talk but cannot deliver. Please pray for us. We seek everyone's cooperation," he added.

Md Mostaqur Rahman FCMA has been appointed governor of Bangladesh Bank for a four-year term, replacing Dr Ahsan H Mansur.

The Financial Institutions Division of the Ministry of Finance issued a gazette notification this afternoon confirming his appointment.

He is the managing director and chief executive officer of Hera Sweaters Limited and currently serves as chairman of the BGMEA Standing Committee on Bangladesh Bank.

He was also a member of the BNP's election steering committee during the 13th national election held earlier this month.

A qualified Cost and Management Accountant (CMA) with 33+ years of post-qualification experience, he holds a BCom (Hons) and a Master's Degree from the Department of Accounting at Dhaka University, according to his curriculum vitae.

Throughout his career, he has been a member of prestigious professional and industry associations, including Bangladesh Garments Manufacturers and Exporters Association (BGMEA), Real Estate and Housing Associations of Bangladesh (REHAB), Association of Travel Agents of Bangladesh (ATAB), and Dhaka Chamber of Commerce and Industry (DCCI), and has served on various important committees.

He has also worked closely with various regulators, including the Bangladesh Bank and Chittagong Stock Exchange Ltd.

Mostaqur is a senior financial governance specialist with over 30 years of leadership experience in corporate finance, export economics, institutional governance, and financial systems management, with expertise in financial oversight, regulatory compliance, banking-sector engagement, and capital management.

Commenting on the reshuffle at the Bangladesh Bank governor's post, Finance Minister Amir Khasru Mahmud Chowdhury has said that changes are inevitable as a new government has come to power.

"A new government has come to power. Many things will change. There has been a change here as well. This is nothing new," the minister told reporters while leaving the Secretariat this afternoon (25 February).

He added that changes would take place in many other areas, too.

Earlier in the day, the Financial Institutions Division (FID) of the Ministry of Finance issued a gazette notification appointing Md Mostaqur Rahman FCMA as the new governor of the central bank, replacing Ahsan H Mansur.

This marked the first time in Bangladesh's history that a businessman has been appointed as the Bangladesh Bank governor.

Asked whether there was any specific reason behind such a rapid change at the governor's post, the finance minister avoided a direct response, reiterating that more changes were forthcoming and that there was no particular reason behind this move.

The finance minister also had a busy day, holding meetings with the commerce minister, commerce secretary, finance secretary, FID secretary, and the chairman of the National Board of Revenue.

Mostaqur is the chairman of the BGMEA Standing Committee on Bangladesh Bank and the managing director and CEO of Hera Sweaters Limited. He was also a member of the BNP's election steering committee during the 13th national election held earlier this month.

The previous interim government on 13 August -- eight days after a mass uprising ousted the Awami League government -- appointed Mansur as the BB governor, in place of Abdur Rouf Talukder, who resigned on 9 August.

The FID in another gazette notification this afternoon cancelled the rest of Mansur's tenure, while Mostaqur's notification said his appointment order, issued in the public interest, will take effect immediately.

The Hongkong and Shanghai Banking Corporation (HSBC) Limited on Wednesday said that net income fell $1.8 billion to $21.1 billion in 2025 as the bank ploughed ahead with sweeping overhauls to streamline its structure and cut costs.

Profit attributable to shareholders last year stood at $21.1 billion, from $22.9 billion the year before, the lender said in a filing to the Hong Kong stock exchange.

Pre-tax profit fell $2.4 billion to $29.9 billion.

The World Trade Organization said Tuesday it would establish an expert panel to examine a Chinese complaint over Indian incentive schemes in the automotive and renewable energy sectors.

The WTO said in a statement that its Dispute Settlement Body (DSB) had agreed during a meeting to set up a panel to review China’s assertion that the Indian measures unfairly discriminate against foreign businesses and restrict trade, in violation of WTO rules.

The measures in question include incentives for the production of advanced chemistry cell batteries, automobile and auto components and electric vehicles.

China, which charged that the measures discriminated against the use of goods of Chinese origin, had back in October requested consultations with India to iron out the dispute. When that did not work, Beijing first asked the WTO last month to establish a panel of experts, but the request was blocked by India.

The DSB granted the second request on Tuesday.

Under WTO regulations, parties in a dispute can block a first request for an arbitration panel, but if the parties make a second request, it is all but guaranteed to go through.

India told Tuesday’s DSB meeting that it regretted that China had pushed forward with its panel request, insisting it had participated in the earlier consultations in good faith.

It said it remained confident its measures complied with WTO rules.

The United States, a third party in the case, also voiced disappointment that China had chosen to move forward with the panel request.

“China’s complaint is a regrettable attempt to distract from its own non-market policies and practices, to entrench reliance on China’s non-market excess capacity, and to undermine the broader interests of all WTO Members,” the US representative said.

Trading at the Dhaka bourse ended on a mixed note as the benchmark index edged up slightly, while overall market turnover dropped sharply, reflecting cautious investor sentiment.

The DSEX, the broad index of the Dhaka Stock Exchange (DSE), rose 12 points to close at 5,554. The blue-chip DS30 index also advanced, gaining 8 points to settle at 2,151. Of the total issues traded during the session, 154 advanced, 167 declined and 72 remained unchanged, indicating a mixed market breadth.

However, turnover fell by 31% to Tk565 crore, highlighting subdued trading activity as investors remained watchful amid prevailing market uncertainty.

Market analysts said the sharp fall in turnover suggests investors are adopting a wait-and-see approach, even as selective buying in large-cap stocks continues to lend support to the index.

According to EBL Securities in its daily market review, the benchmark index managed to settle in positive territory following the previous session's modest pullback, as late-session buying support emerged across the trading board after extended intraday volatility.

Sellers maintained dominance for most of the session as cautious sentiment shaped the broader market pulse. Emerging buying activity in the final hour, particularly in selective large-cap stocks, helped the market close in the green, the EBL review added.

Major index pullers included Beximco Pharmaceuticals, City Bank, Bank Asia, BRAC Bank and Al-Arafah Islami Bank, whose gains supported the upward movement of the index.

On the sectoral front, banking stocks accounted for the highest turnover at 24.6%, followed by pharmaceuticals at 10.8% and textiles at 9.9%.

Sector performance was mixed, with jute rising 1.2%, textile gaining 0.6% and financial institutions adding 0.6%. In contrast, mutual funds fell 1.3%, general insurance declined 0.6% and life insurance slipped 0.4%.

Among individual stocks, Usmania Glass topped the gainers' chart with a 10% rise, followed by Northern Jute and Khulna Printing and Packaging, both up 9.93%. Meghna Condensed Milk and Meghna PET also posted strong gains.

On the losing side, MBL First Mutual Fund dropped 4.76%, while First Finance and Tung Hai Knitting each declined 3.84%.

The Bangladesh Securities and Exchange Commission (BSEC) reported a 14% decline in its overall earnings to Tk105 crore in the 2024–25 fiscal year, mainly due to a sharp fall in income from fines, fees and licensing, according to its annual report.

Earnings from fines, fees and licensing dropped 32% year-on-year to Tk39.72 crore, while other income slipped 2% to Tk65.32 crore.

Despite the fall in revenue, the regulator managed to reduce its total costs by 21% to Tk75.82 crore, largely driven by lower expenditure on salaries, allowances and other administrative expenses.

After deducting all costs, the commission's net surplus rose 12% to Tk29.23 crore in FY25, reflecting improved expenditure management. The regulator's total assets stood at Tk498.60 crore at the end of FY25, up from Tk469.89 crore a year earlier.

During the fiscal year, the commission approved Tk6,172.46 crore in capital increases through various instruments. This included Tk303 crore for one listed company via a rights issue, Tk4,671 crore for 11 companies through private debt placements, Tk5 crore for a qualified investor company, and Tk1,193 crore for 15 companies through the issuance of ordinary, bonus and preference shares.

Of the 226 complaints received from individuals and institutions, 222 were resolved while four are still under process. The regulator carried out 92 investigations and inquiries, along with 610 inspections, to detect irregularities and securities law violations. It took 987 enforcement actions — fining 229 individuals and institutions, issuing warnings to 684, and granting exemptions to 74. Between 19 August 2024 and 30 June 2025, fines totaling Tk1,073.21 crore were imposed.

The commission reported 527 cases pending in different courts, including those filed by and against it. During the year, it filed four cases, faced 76, and saw 76 cases disposed of. To strengthen market discipline and modernisation, the commission issued 11 orders, directives and notifications.

To boost international credibility and attract foreign investment, the commission scrapped discriminatory circuit breakers and lifted floor prices for most companies in August 2024. It said allowing market-driven price discovery based on supply and demand would ensure long-term stability and help restore investor confidence.

Bangladesh Services Limited (BSL), the owner of InterContinental Dhaka, has reported a 24% year-on-year reduction in losses in the first half of the current fiscal year, though the state-run hospitality firm continues to struggle with heavy debt and accumulated losses.

According to its disclosure, it incurred a loss of Tk38 crore with the loss per share of Tk3.95 in the July to December period of 2025-26. It had incurred Tk50.85 crore loss with per share loss of Tk5.20 in H1 of 2024-25.

In the second quarter during October–December, the company incurred a loss of Tk12.61 crore, with a loss per share of Tk1.29. In the corresponding quarter of the previous fiscal year (FY25), it had posted a higher loss of Tk18 crore, with a per share loss of Tk1.85.

Its net asset value per share at the end of December increased to Tk2.58, which was Tk1.97 for the July-December of 2024. While its net asset value per share stood at Tk215.79 as of December 2025, which is lower from Tk219.74 as of 30 June 2025, it data showed.

Despite the improvement in half-year performance, Bangladesh Services Limited remains under significant financial strain.

The travel and leisure sector-listed firm has been incurring losses for years amid a business slowdown and the burden of substantial loans taken for renovation. Its long-term loans and borrowings swelled to over Tk800 crore by June 2025, according to its latest annual report.

As of June 2025, accumulated losses stood at Tk706 crore, including an additional Tk87.38 crore loss in FY25. The company has failed to declare dividends for years due to continuous losses.

Its auditor said its accumulated losses for FY25 stood at Tk706 and a current assets deficit of Tk308 crore.

In addition, the company has loans of Tk908 crore and debt equity ratio of 0.42. These matters indicate the existence of a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern, the auditor said.

Bangladesh expanded its footprint in the United States apparel market to 10.53 percent in 2025, up from 9.26 percent a year earlier, as American buyers shifted orders away from China, according to official data.

US retailers and brands imported garments worth $77.88 billion from across the world last year, according to the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce.

Of that total, Bangladesh supplied $8.20 billion, strengthening its position as the third-largest apparel exporter to the US market.

In 2025, Vietnam emerged as the largest garment exporter to the American market, overtaking China. It shipped readymade garment items worth $16.74 billion, capturing a 21.50 percent market share.

China, which led the market in 2024 with a 20.83 percent share, saw its position weaken abruptly. Its share fell to 13.66 percent in 2025, with exports totalling $10.64 billion, according to OTEXA data.

China’s decline is largely linked to punishing tariffs imposed by US President Donald Trump last year.

The United States is the largest single-nation export market for Bangladeshi apparel items. Bangladesh’s performance in the American market marks a steady recovery and gradual expansion over the past few years.

Its market share stood at 9.37 percent in 2023 and 9.74 percent in 2022. The figure dropped to 8.76 percent in 2021 as exports were hit by the severe fallout from the Covid-19 pandemic.

The latest gain signals growing demand for Bangladeshi garments in the US market at a time of shifting sourcing strategies among global brands.

Industry leaders expect further growth if trade conditions remain favourable. The Trump administration has lowered the reciprocal tariff to 10 percent after a US court ruling, a move that could ease cost pressures in the US market.

“The lowering of the tariff will reduce the prices of commodities in the American markets, and the buyers will purchase more commodities such as garment items and ultimately the supply of locally made garments to the American market will grow in future,” said Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Oil prices were hovering near seven-month highs on Wednesday as the threat of military conflict between the US and Iran that could disrupt supply continued to worry investors as talks between the parties are set for Thursday.

Brent futures were up 43 cents, or 0.6 percent, at $71.20 per barrel at 0400 GMT. WTI futures rose 38 cents, or 0.6 percent, to $66.01.

Gold prices rose on Wednesday, lifted by a softer dollar and heightened safe-haven demand amid uncertainty over US tariffs and rising friction between Washington and Tehran.

Spot gold rose 0.8 percent to $5,190.99 per ounce, as of 0841 GMT. US gold futures for April delivery were up 0.7 percent at $5,210.40.

The US dollar index shed 0.1 percent, making greenback-priced bullion cheaper for other currency holders.

“Spot gold is being supported above the $5,000 level by the softer US dollar, a muddied outlook on US trade policy, and persistent geopolitical tensions,” said Han Tan, chief market analyst at Bybit.

“As long as these fundamental drivers remain intact, bullion bulls will be eager for a return towards record highs.”

Gold, a traditional safe-haven, does well during times of geopolitical and economic uncertainty.

US President Donald Trump said in his State of the Union speech that “almost all” countries and corporations want to stick to tariff and investment agreements previously made with Washington.

The country began collecting a temporary 10 percent global import tariff on Tuesday, but Washington was working to raise it to 15 percent, a White House official said.

Meanwhile, US envoys Steve Witkoff and Jared Kushner are slated to meet with an Iranian delegation for a third round of nuclear talks on Thursday in Geneva.

Iran is close to a deal with China to purchase anti-ship cruise missiles, according to Reuters sources, which could target the US naval forces that have assembled near the Iranian coast.

Elsewhere, spot silver climbed 4.2 percent to $90.96 per ounce, a three-week high.

“The path ahead (for silver) will be shaped by a more complex mix of monetary policy, inflation expectations, and US dollar dynamics,” said Rania Gule, Senior Market Analyst at XS.com.

JP Morgan on Wednesday said demand from central banks and investors this year could push gold prices to $6,300 an ounce by end-2026. It also raised its long-term price forecast for gold to $4,500 per ounce.

In an abrupt shakeup in the central bank's top echelon, the new government Wednesday appointed accountant-businessman Md. Mostaqur Rahman as new governor of the Bangladesh Bank (BB).

Dr Ahsan H. Mansur made an unceremonious exit as the government terminated his job contract as governor, amid protest by a section of central bank's officers outside.

A group of the demonstrating BB officials, meanwhile, forced Ahsan Ullah, adviser to Governor Mansur, out of the central bank's premises.

With the latest appointment given by the Ministry of Finance, the country gets a businessman as the central bank governor for the first time in its history.

Amid briefings by the protesting BB officers and the governor, the ministry issued two notifications. One notification says the remaining tenure of Dr. Ahsan H. Mansur as governor has been cancelled "in public interest", with the order taking immediate effect.

Another notification announced the appointment of Mostaqur Rahman as governor for a term of four years from the date of his joining.

The order requires him to relinquish all professional affiliations with other institutions and organisations before assuming office -- and it takes effect immediately.

Mostaqur Rahman is a cost and management accountant (FCMA) and a businessman by profession. He is the managing director of Hera Sweaters located in Narayanganj.

Born in Dhaka in 1966, Mr. Rahman completed his undergraduate and master's degrees in accounting from University of Dhaka. He later obtained the FCMA qualification from the Institute of Cost and Management Accountants of Bangladesh.

An entrepreneur with more than 30 years of experience, the newly appointed governor has been involved with corporate finance, exports, institutional governance, and financial management. In addition to the ready-made garment sector, he also has business interests in real estate.

Mr. Rahman is a member of several trade bodies, including Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Real Estate and Housing Association of Bangladesh (REHAB), Association of Travel Agents of Bangladesh (ATAB) and Dhaka Chamber of Commerce and Industry (DCCI).

He has served on various committees of these organisations and has prior experience working with Chittagong Stock Exchange Limited.

Following the July-August uprising in 2024 that toppled the Sheikh Hasina's governing regime, the interim government appointed Dr. Ahsan H. Mansur as the central bank governor to replace the then governor, Abdur Rouf Talukder, who did not attend office after the mass uprising, on 14 August 2024.

Nine days after the Bangladesh Nationalist Party (BNP)-led government came to power, Dr. Ahsan H. Mansur's appointment was cancelled, in the wake of large-scale administrative reshuffle.

Of the previous 13 governors, eight were bureaucrats, two economists, two commercial bankers and one academic.

Asked on what grounds the governor was changed, Finance and Planning Minister Amir Khasru Mahmud Chowdhury said there was nothing to be taken into consideration in this case.

"A new government has come. The new government has priorities. Naturally, the changes are taking place, not only in central bank, changes are also coming in many places and that will continue," he said.

Chowdhury makes it clear that changes will be made "wherever necessary to implement the new government's programmes, preferences, and ideas".

The outgoing governor of the central bank, Dr Ahsan H Mansur, said the government could have followed a different path to remove him from the post instead of creating the "mobocracy-like" situation.

"It could have been otherwise, but it's okay," he told the Financial Express on Wednesday night over the phone.

He said: "Whatever Allah does He does it for the welfare of the creatures. I wish both the government and the new governor success."

Contacted, Dr Zahid Hussain, a former lead economist at the World Bank's Dhaka office, said he didn't have any idea about the newly appointed governor and there is no public record about him to make a comment at this stage.

"The government should consider appointing right person in the right job," he said, so that no mismatch is created.

Dr. Hussain notes that competence of a person and conflicts of interest should be taken into consideration by the government before making new appointments in key positions.

"No compromise should be made in these two basic areas for appointment of a person who will lead an organisation."

On condition of not being quoted by name, a former managing director of a private commercial bank says Dr Mansur came into the central bank leadership when the economy was in a disastrous situation with fast-depleting forex reserves.

From such unpleasant scenario, he recounts, the policies taken by the Mr. Mansur helps reshape the economy increasing foreign-exchange reserves to $35 billion from less than $19 billion after clearing mounting accumulated unpaid bills.

"He not only stabilised the forex market but also made stable the local currency, which gives us some sort of comfort. His exit could have been done in a better way," he remarks.

About the newly appointed governor, the seasoned banker said he is a gentleman and lived close to his house. "But he lacks element of running central bank. But I wish him all the best."

Seeking anonymity, the managing director and chief executive officer of a private commercial bank said the way the outgoing governor left "is unfortunate and unexpected".

About the new governor, he said: "It's hard to believe that a businessman becomes a governor."

bdnews24.com adds: Newly appointed Bangladesh Bank Governor Md Mostaqur Rahman has signalled that "restoring trust" in the banking sector will be his top priority, alongside efforts to lower interest rates.

The garment industry entrepreneur assumed office on Wednesday, appointed by the BNP-led government, succeeding Ahsan H Mansur, who had served during the caretaker government.

Commenting on his vision for the central bank, Mostaqur said: "As you know, the economy and the banking sector face challenges. Taking on this responsibility at this time is a challenge.

"God willing, I will first sit in the bank, consult with everyone, and with cooperation, focus on the primary task-trust-building in banking, restoring discipline. Of course, the previous governor achieved a lot, and we aim to continue that work."

He added, "Another main focus will be driving growth. Credit growth is slowing, as you know, so we will work to lower interest rates and stimulate lending."

China and Germany want to deepen cooperation, German Chancellor Friedrich Merz and Chinese Premier Li Qiang said in Beijing on Wednesday, as Merz began a visit aimed at resetting ties against the backdrop of a widening trade imbalance.

Merz told Li that Germany attached great importance to maintaining and deepening its intensive economic exchanges with China, its largest trading partner last year, while emphasising the need to ensure fair cooperation and open communication.

"We have very specific concerns regarding our cooperation, which we want to improve and make fair," said Merz, who faces a tough balancing act of redefining an economic relationship that is increasingly unfavourable to German interests.

Li called on both sides to work together to safeguard multilateralism and free trade, in reference to US President Donald Trump's trade war, which has upended the global trading system.

"China and Germany, as two of the world's largest economies and major countries with important influence, should strengthen our confidence in cooperation, jointly safeguard multilateralism and free trade, and strive to build a more just and fair global governance system," Li said.

China is seeking to pitch itself as a reliable economic partner, in contrast to the United States, as Europe struggles to address vulnerabilities in its supply chains and worries about growing dependence on China.

Europe is witnessing an acceleration of concerning trends in China, Europe's Trade Commissioner Maroš Šefčovič told the European Parliament on Tuesday, citing China's growing dominance in key manufacturing sectors, a rising imbalance in bilateral trade, and falling market share of EU companies in China.

Merz, on his first visit to China, becomes the latest European leader seeking to reset ties with China after Britain's Starmer and Canada's Carney earlier this year, while Beijing touts the benefits of engaging with its massive consumer market and advanced manufacturing base.

Engagement between Europe's largest economy and China could set the stage for EU-China relations this year.

Merz, accompanied by a delegation of 30 firms including top carmakers such as Volkswagen and BMW (BMWG.DE), opens a new tab which are acutely feeling the strain of Chinese competition - contributing to a growing trade imbalance that has sparked concern in Berlin and led to calls for protectionist policies.

Germany's heavily manufacturing-based economy has been particularly hard hit by competition from China's manufacturers, Rhodium Group's China analyst Noah Barkin said in a recent research note.

The face of China's market, once coveted by foreign businesses for its wide consumer base and rising spending power, has changed in the last several years, with a slowing economy capping consumer demand and manufacturing overcapacity increasingly pushing domestic firms to look for opportunities abroad.

In editorials ahead of the visit, Chinese state media emphasised the potential for EU-China cooperation to become a stabilising force while US tariff policies upend global trade.

Xinhua, in an editorial published early on Wednesday, cited a German chamber of commerce survey finding that innovation gains in China are feeding back into German headquarters.

State-backed newspaper the Global Times said concerns about competition with China would be outweighed by the lure of China's massive market.

"Rhetoric such as 'systemic rival' and 'de-risking' has at times complicated Germany's China policy," it said in an early Wednesday editorial.

"Yet the enthusiasm and actions of the German business community speak louder than political slogans."

Within hours of ousting Ahsan H Mansur and appointing a new governor, the Bangladesh Bank (BB) transferred five officials and reinstated three previously transferred officials back to their posts.

The five transferred officials are Md Zabdul Islam, Md Shahid Reza, Md Bayazid Sarker, Gazi Md Mahfuzul Islam -- all holding director posts -- and Md Kamrul Islam, an additional director. Their transfers were ordered yesterday through a notice issued by the central bank’s human resources department.

On Tuesday, three central bank officials were transferred. They were Nawshad Mustafa, general secretary of the pro-Awami League ‘Nil Dal’ at BB and director of the SME Special Programmes Department; AKM Masum Billah, president of the Bangladesh Bank Officers’ Welfare Council elected from Nil Dal; and Golam Mostafa Shraban, general secretary of the council.

However, an amendment was issued by the same department yesterday, reinstating them to their previous posts.

Earlier on Monday, they were served show-cause notices for holding a press conference in violation of staff rules and commenting on policy decisions. The order for their transfer came a week after a section of BB officials, under the banner of the Bangladesh Bank Officers’ Welfare Council, held a press conference on the BB premises.

At the press briefing, called suddenly on February 16, officials described Ahsan H Mansur’s position as “autocratic” on several issues, including the merger of weaker banks with EXIM Bank and Social Islami Bank and the initiative to grant digital bank licences.

Three officials of the Bangladesh Bank (BB) were transferred a day after being served show-cause notices for holding a press conference in violation of staff rules and commenting on policy decisions.

BB’s human resources department issued a notice ordering the transfer yesterday.

The transferred officials are Nawshad Mustafa, general secretary of the ‘Nil Dal’ at Bangladesh Bank and director of the SME Special Programmes Department; AKM Masum Billah, president of the Bangladesh Bank Officers’ Welfare Council elected from Nil Dal; and Golam Mostafa Shraban, general secretary of the council.

The central bank issued show-cause notices to the three officials on Monday
Nawshad Mustafa has been transferred from the head office of Bangladesh Bank to its Barishal office, Masum Billah to Rangpur, and Golam Mostafa Shraban to the Bogura office.

The central bank issued show-cause notices to the three officials on Monday, asking the officials to provide explanations within 10 days.

This development comes a week after a section of BB officials, under the banner of the Bangladesh Bank Officers’ Welfare Council, held a press conference on the BB premises.

At the press briefing, called suddenly on February 16, officials described the central bank governor’s position as “autocratic” on several issues, including the merger of weaker banks with EXIM Bank and Social Islami Bank and the initiative to grant digital bank licences.

The EU executive has again delayed presenting a fiercely contested plan to favour European companies over foreign rivals in key sectors, pushing it back to March 4 to give more time for talks, officials said Monday.

The proposal was expected Thursday but there has been strong pushback from some EU states and senior officials inside the European Commission over the plans.

The cabinet of EU industry chief Stephane Sejourne, who will present the proposal, said it hoped “this additional week of internal discussions will allow to make the proposal even more rock-solid”.

This is the third time the presentation of the plans known as the “Industrial Accelerator Act” to facilitate “Made in Europe” production has been delayed.

It was initially expected in December, then it was postponed to January before it was again delayed to February. The EU executive’s plans would tell companies that if they want to access public money, a certain percentage of the components for their goods like cars must be made in the 27-country bloc.

The new rules are expected to cover a limited number of strategic sectors, such as green technology, cars, chemicals and steel.

France has strongly defended the proposal, in a bid to protect its national electric car battery industry.

Germany has pushed back, with Chancellor Friedrich Merz saying this month it should be a “last resort”.

Several countries including Sweden and the Netherlands -- supporters of free trade -- have warned against veering into protectionism.

There have been tense debates inside the commission over whether the EU’s partners, such as Japan, should be included and the latest draft seen by AFP included a reference to “trusted partners” to address such concerns.

EU chief Ursula von der Leyen has supported the plans, arguing they would help “strategic sectors” and support scaling-up European production capabilities.