BMW is betting on its long-awaited Neue Klasse electric cars to revive its fortunes in China after two years of declining sales. The problem for the German automaker is that China's EV race may have already moved on without it.

BMW, under new CEO Milan Nedeljkovic, issued a shock profit warning last month that it partly blamed on China - its third in less than three years. On Friday, it said China sales plunged 30% in the second quarter.

Some shareholders and analysts say BMW has moved too slowly to bring its long-trailed Neue Klasse, or "new class", EVs to a market where Chinese rivals are developing increasingly sophisticated electric cars in as little as 18 months - roughly twice as fast as traditional automakers.

"If this had launched two years ago it could have been a game-changer," said Yale Zhang, managing director at Shanghai-based research firm Automotive Foresight. "In today's Chinese auto market ... it is hard to stand out."

Chinese buyers increasingly expect the latest technology from home-grown carmakers such as Nio, which has driven its flagship ET9 saloon over speed bumps with a tower of champagne glasses balanced on the bonnet — without spilling a drop — to showcase the vehicle's advanced suspension system.

BMW's first Neue Klasse model for China, the iX3 SUV, is due to go on sale in November.

Combustion-engine heritage in EV-heavy market

BMW's challenge reflects the broader struggle facing German premium automakers in China, where the engineering pedigree and combustion-engine heritage that help sell high-margin models in Europe and the US carry less weight with many buyers.

"Chinese consumers no longer buy into that," said Wang Xianbin, vice president of the Gasgoo Research Institute.

Instead, they favour local brands such as Nio, Geely's Zeekr and Xiaomi, which offer intelligent EV features tailored to Chinese tastes.

Chinese premium brands are openly targeting customers of BMW, Audi, Porsche and Mercedes.

Only about 5% of BMW's sales in China are fully electric, according to Global Mobility data, in a market where EVs account for 46% of vehicle sales. BMW's China sales fell in both 2024 and 2025. Sales at Mercedes and Volkswagen's Audi brand are also down, dropping 28% and 19%, respectively, in the first half of this year.

Hendrik Schmidt of DWS, a top-10 BMW investor, said direct China experience was limited among the company's top executives and supervisory board, adding that the scale of the challenge had not been fully appreciated.

"From our perspective, the dynamics here have been considerably underestimated," he said.

A company spokesperson said BMW's senior management had extensive experience in China and the company pursued a country-specific product strategy that includes "a greater focus on highly integrated digital services, advanced connectivity features, and rear-seat comfort".

According to Shanghai consultancy LandRoads, BMW's average transaction price in China in 2025 was 341,000 yuan ($50,200), below local brands such as Nio, Aito and Denza. Among German premium brands, only Audi was priced lower, at 287,000 yuan.

BMW lowered some of its list prices in China in coordination with local authorities in the first quarter, the spokesperson said. Independent dealers are also free to set their own sales prices and discounts, she added.

But analysts say price cuts alone are no longer enough. Chinese buyers still want value for money, while Zhang said local rivals are "armed to the teeth with cutting-edge features".

"Chinese consumers today don't just pick a car based solely on deep discounts," Gasgoo's Wang said.

'A concern from two or three years ago'

As BMW's former production chief, Nedeljkovic is considered one of the architects of the Neue Klasse, a platform underpinning 40 new launches by next year that has generated encouraging early demand in Europe.

The China launch of the iX3 was delayed after BMW switched from in-house technology to Chinese partner Momenta to provide assisted-driving technology, a feature many local consumers now consider essential.

The spokesperson said BMW has a different approach to so-called China speed, pointing to thorough tests throughout the development process to ensure customer safety.

Gasgoo's Wang said he first heard about the model four years ago but argued the market has changed since then, with BMW's marketing around range anxiety already sounding dated.

"That was a concern from two or three years ago," said Chang Yan, the founder of Supercharged, a popular EV-focused blog on China's Weibo platform.

He said the attributes often celebrated as technological superiority in Europe - handling and performance - do not necessarily resonate as strongly in China, where domestic brands have become "far more aggressive in design and features".

Gasgoo's Wang said BMW's product development remained heavily driven from Munich headquarters and the company did not fully understand what Chinese consumers want.

"Overall, it's clear that BMW is one step behind," Wang said.

Changes to the VAT-payment schedule could put immense pressure on field officials to achieve the government's ambitious VAT-collection target of Tk 2.23 trillion in the current fiscal year, according to tax officials.

Field-level VAT officials say they would effectively have only nine months of revenue reflected in this fiscal year's collection as VAT for the final quarter would be deposited in July - the first month of the following fiscal year - under the revised payment schedule.

In the Finance Bill 2027, the government has made VAT payment and VAT return submission simpler by extending payment and submission schedules to three months from every month.

It was the long-awaited demand from businesses who found the monthly compliance requirements time-consuming.

Officials say VAT zones would have to mobilise exceptionally high revenue every quarter -- and every month -- to meet the target, making the goal extremely difficult unless the government amends the provision or makes special arrangements for the current fiscal year.

The original VAT collection target for FY26 was Tk 1.86 trillion, but actual collection reached Tk 1.55 trillion.

To achieve the FY27 target of Tk 2.23 trillion, the VAT wing will have to raise collections by approximately 44 per cent over last year's actual receipts.

This means an additional Tk 680 billion must be mobilised during the current fiscal year.

VAT contributes around 37 per cent of the total domestic revenue mobilisation.

Field officials say because the revised payment schedule would effectively leave only three revenue-generating quarters within the fiscal year, the burden would be even heavier.

They estimate VAT offices would need to mobilise around Tk 743.3 billion in each of the three recognised quarters to remain on track.

Unless there is a significant expansion of economic activity, stronger VAT compliance, resolution of pending litigation, improved enforcement, and substantial gains from digitalisation, and anti-evasion measures, achieving the target will be extremely challenging, officials say.

The new target is also substantially higher than last year's original target of Tk 1.86 trillion, underscoring the government's increasing reliance on VAT to meet its overall revenue objectives.

"The last quarter is traditionally the strongest period for VAT collection, with revenue often nearly doubling compared to that of the other quarters," a senior field-level VAT official says.

"If those receipts are shifted to the next fiscal year because of the revised payment schedule, the revenue shortfall this year could be significant."

Officials note that the FY27 VAT target is around 44 per cent higher than last year's actual collection, placing unprecedented pressure on field offices.

They warn that unless the government introduces a special transition arrangement for the current fiscal year, VAT collection is likely to fall well short of the target.

However, they believe the problem would largely disappear from the following fiscal year once the new payment cycle becomes fully operational.

Former VAT officials, however, downplay the concern, arguing that the impact may not be as severe because a substantial portion of VAT is collected at source.

A former VAT member says VAT deducted at source would continue to provide a steady stream of revenue despite the change in payment timing.

Current field officials disagree with this, saying only about 30 per cent of VAT is collected at source -- primarily through government entities -- while the remaining 70 per cent depends on regular payments by businesses.

The government has set a VAT collection target of Tk 2.23 trillion for FY27, up from the actual collection of Tk 1.55 trillion in the previous fiscal year.

In parliament, Finance Minister Amir Khosru Mahmud Chowdhury said on Monday the government collected Tk 4.10 trillion in total revenue during FY26 against a target of Tk 5.03 trillion, achieving 81.6 per cent of its overall revenue goal.

According to the minister, income tax collection stood at Tk 1.42 trillion against a target of Tk 1.86 trillion, representing an achievement rate of 76.7 per cent.

VAT collection reached Tk 1.55 trillion against a target of Tk 1.86 trillion, achieving 83.7 per cent of the target.

Meanwhile, customs revenue amounted to Tk 1.11 trillion against a target of Tk 1.30 trillion, meeting 85.3 per cent of its target.

Former VAT member Farid Uddin says the changes in VAT payment schedule would not be a problem; it would rather help businesses reduce time and cut the cost of doing business. Some 95 per cent of domestic VAT comes from tobacco, mobile, and pharmaceuticals companies and VAT deducted at source, he says.

The rest of the businesses pay a negligible amount of VAT that would not affect the collection much, he adds.

The Bangladesh Bank (BB) has allowed Shinepukur Ceramics, a defaulting company of Beximco Group, to open letters of credit (LCs) for raw material imports under a special arrangement.

In a notification issued yesterday, the central bank said the move is meant for keeping production running at the ceramics manufacturer and protecting its workforce.

Under the arrangement, Shinepukur Ceramics can now open import LCs with Sonali Bank PLC by depositing a 100 percent margin, meaning the company will have to pay the full import value in advance.

The facility will remain in place until December next year.

Under Section 27 Ka Ka (3) of the Banking Companies Act, banks and financial institutions are barred from extending any loan facility to a defaulting borrower. With yesterday’s circular, the BB has exempted Shinepukur Ceramics from this provision for 18 months.

As a condition of the approval, the central bank said all revenue earned by the company must be deposited into a designated bank account. Sonali Bank will recover its outstanding dues from that account on a proportionate basis.

However, the government and the central bank will not assume any responsibility for the loan facility provided to support the opening of the import LCs, according to the notification.

As a result, Sonali Bank will not be able to seek any financial assistance from the government or the BB for those loans in future, the central bank said.

Earlier this month, the BB granted a similar facility to Abdul Monem Sugar Refinery Ltd, another defaulting borrower, allowing it to continue opening import LCs.

The US government has already paid back tens of billions of dollars in tariffs it collected before the Supreme Court ruled them illegal, according to budget figures released Monday.

Tariffs -- taxes on imported goods -- have been a key part of President Donald Trump’s game economic plan since he took office again last year.

But in February, the Supreme Court shut down a big chunk of the extra tariffs Trump ordered, forcing the government to return money to the companies that had paid them.

According to the budget data, the US has paid out $81 billion in tariff refunds so far this fiscal year, which started in October 2025, compared to just $5 billion during the same stretch last year.

A Treasury Department official told reporters that the spike is almost entirely because of the Supreme Court decision, with most of the refunds happening in May and June. Trump had pitched the tariffs as a catch-all fix for the economy -- bringing factories back to America, getting better trade deals and closing the deficit in the federal budget.

But the deficit, which had actually gotten a little smaller last year thanks to the tariff income, is now growing again.

It hit $1.367 trillion in the first nine months of the fiscal year, up two percent.

The US also spent over $1 trillion just on paying interest on its debt, up 14 percent, and military spending climbed five percent because of the war in the Middle East.

Bangladesh will expedite efforts to explore international bond markets to gather an increased volume of foreign funds to finance development works, the government was learnt to have told a visiting IMF delegation on Tuesday.

This way, it said, the domestic borrowings will be lessened as it ultimately lowers fund flow to the private sector, according to sources.

The International Monetary Fund (IMF) delegation on the day had meetings with the Government Debt and Financial Asset Management Wing of the Finance Division where they discussed domestic and external financing plans, government guarantees and the financing of the state-owned enterprises.

Also, the sources said, the Fund mission had meetings with the Economic Relations Division and the central bank discussing "external public debt stock and composition, disbursement, pipeline and rollover needs of external financing".

Moreover, they discussed the financing mix of Bangladesh's external borrowing to get update on flow of concessional loans, commercial borrowing, and non-concessional plans.

The risks to external planning, focusing geopolitical developments, and fiscal policies of donors also came up for discussion during the meetings, according to officials concerned.

The Fund delegation, led by Ivo Krznar, the IMF Mission Chief for Bangladesh, is visiting Dhaka to assess macroeconomic situation of the country and discuss a new credit programme. They are also discussing with the Bangladeshi authorities their reform agenda and policy priorities.

Bangladesh is expecting a $4.0 billion to $4.5 billion worth of credit programme once the discussion and subsequent negotiations are completed. The Fund is expected to flow in by the end of December, according to finance division officials.

The Bangladesh Bank has extended the Foreign Currency (FC)-Taka swap facility to exporters operating in the country's specialised economic zones, allowing them to access short-term Taka liquidity while retaining their foreign currency holdings.

The central bank issued a circular today (13 July) permitting Authorised Dealers (ADs) to execute FC-Taka swap arrangements against unencumbered balances maintained in eligible foreign currency accounts of exporters.

Under the facility, exporters will be able to meet local operational expenses, including wages, utility bills and other working capital needs, without permanently converting their foreign currency holdings. The measure is intended to improve liquidity management while preserving foreign exchange for future international obligations.

The facility will be available to exporters operating in Export Processing Zones (EPZs), Private Export Processing Zones (PEPZs), Economic Zones (EZs) and High-Tech Parks (HTPs).

The latest directive expands the scope of FE Circular No. 41, issued on 3 November 2025, which had restricted FC-Taka swap arrangements to balances held in 30-day pool and Export Retention Quota (ERQ) accounts.

Bangladesh Bank said the measure also complements FE Circular No. 31, issued on 1 July 2025, under which industrial enterprises in specialised zones were allowed to maintain the foreign currency accounts that are now eligible for the swap facility.

The central bank said all other provisions of the earlier circulars will remain unchanged.

Bangladesh’s pharmaceutical industry is urging the government to review the country’s medicine pricing policy, saying years of limited price adjustments have squeezed profitability, discouraged investment in new medicines and put increasing pressure on smaller drug makers.

In a June 30 letter to Health and Family Welfare Minister Sardar Md Sakhawat Husain, the Bangladesh Association of Pharmaceutical Industries (Bapi) sought an urgent meeting to discuss the challenges facing the sector and propose policy support.

The association said rising production costs, persistent inflation, foreign currency shortages and constraints in the pricing regime have left many manufacturers struggling to survive.

Bangladesh has 258 pharmaceutical manufacturers, but the market has become highly concentrated, according to Bapi. Just 20 companies account for about 94 percent of total production, while the remaining 238 produce only 6 percent. Citing data from IQVIA, a leading global healthcare data company, it said 64 of the top 100 pharmaceutical companies recorded negative growth in 2025.

Bapi also rejected claims that medicines made in Bangladesh are expensive. It said 30 of 39 commonly used medicines are cheaper than equivalent products in India, despite local manufacturers relying heavily on imported raw materials.

Calling the pharmaceutical industry a strategic national asset, the association urged the government to introduce policies that would help restore the competitiveness of smaller manufacturers.

Industry leaders echoed Bapi’s concerns, saying the current pricing policy is discouraging investment in research and development and making it harder to introduce innovative medicines.

Abdul Muktadir, chairman and managing director of Incepta Pharmaceuticals, said Bangladesh’s pharmaceutical industry grew rapidly over the past three decades because of policy reforms that encouraged competition and investment.

He said the National Drug Policy introduced in the early 1980s shifted the industry’s focus towards essential medicines, while reforms in the early 1990s gave companies greater flexibility to set prices and expand their product range.

“The free-market approach encouraged competition,” he told The Daily Star. “As more companies entered the market, medicine prices fell while product quality improved.”

However, he said the industry’s momentum has slowed since 2016 as the drug regulator has become increasingly restrictive in approving prices for new medicines.

“If it costs Tk 10 to produce a technologically advanced medicine but the approved price is Tk 8, no company will continue investing in innovation,” he said.

According to Muktadir, companies are now less willing to introduce complex medicines that require significant investment in research and manufacturing technology. He also claimed that around 60 of the country’s roughly 100 pharmaceutical companies are struggling because of pricing constraints.

He called for a review of the current pricing framework, saying a commercially viable system is needed to sustain investment in research and development.

The industry also faces fresh challenges as Bangladesh prepares to graduate from least developed country (LDC) status.

Rabbur Reza, chief operating officer of Beximco Pharma, said Bangladesh has benefited from the World Trade Organization’s intellectual property waiver, which allows local manufacturers to produce certain patented medicines at affordable prices.

After the waiver expires, medicines introduced later will require licensing agreements with patent holders, involving royalty payments and higher costs.

While large companies may be able to negotiate such agreements, smaller manufacturers are likely to find it difficult because of limited financial capacity, he said. He urged companies to register as many eligible products as possible before the waiver expires.

Kaiser Kabir, managing director and CEO of Renata PLC, said many pharmaceutical companies are dropping low-margin medicines as rising costs and years of limited price adjustments squeeze profitability.

He said only 32 of the country’s top 100 pharmaceutical companies recorded revenue growth, while the rest posted lower sales.

“The industry has been going through a series of shocks since 2020,” he said, citing the Covid-19 pandemic, the depreciation of the taka, high inflation and disruptions to global supply chains.

Kaiser said the weaker taka has sharply increased the cost of imported raw materials, but manufacturers have not been able to fully pass on those costs because medicine prices have remained largely unchanged.

“If prices cannot reflect production costs, companies will stop making some medicines,” Kabir said.

He warned that patients could eventually have to rely on more expensive imported medicines, including products brought into the country illegally, as cheaper locally made alternatives disappear from the market.

Bangladesh's electric vehicle (EV) industry is poised to enter a new growth phase, with around Tk4,000 crore in private investments announced over the past few years expected to gather pace following incentives unveiled in the FY2026-27 budget.

From automotive manufacturers and industrial conglomerates to energy companies and filling station operators, private investors are positioning themselves for what they believe could become Bangladesh's next major manufacturing and infrastructure industry.

Industry leaders, however, say the sector's biggest challenge has shifted to ensuring reliable electricity, faster grid connections, and commercially viable charging stations.

The budget has changed the investment equation significantly, several industry leaders told The Business Standard. They added that charging stations remain a long-term business that requires policy support, quality electricity and patience.

The FY27 budget reduced import duties on EVs, introduced tax incentives for local EV manufacturing, exempted duties on charging equipment, and proposed fiscal incentives for charging station operators. The draft EV Industry Development Policy has also proposed a 10-year income tax exemption for charging station businesses.

The government has also set a target of establishing 1,200 commercial EV charging stations by 2030, with the Sustainable and Renewable Energy Development Authority (Sreda) tasked with preparing the regulatory framework and implementation guidelines.

Md Aminur Rahman, director of Sreda, said they have received a large number of applications for commercial charging stations. "We are approving applications phase by phase after technical inspections," he told TBS.

Tk4,000cr investment in pipeline

Industry insiders estimate that more than Tk4,000 crore in investments are now in the pipeline, spanning the manufacture and assembly of electric cars, motorcycles and scooters, as well as the development of charging infrastructure.

The Bangladesh Auto Industries Limited has announced the largest investment so far, committing Tk1,500 crore to establish an EV manufacturing facility in Mirsarai while simultaneously developing charging infrastructure.

Nasir Group and Akij Motors have each unveiled Tk500 crore investment plans, while Rancon Motors has committed Tk300 crore for EV assembly and charging stations.

Runner Automobiles, in partnership with EV giant BYD, is implementing a phased Tk260 crore investment to locally manufacture electric vehicles alongside charging infrastructure.

PRAN-RFL and Walton Group have each earmarked around Tk200 crore for electric mobility projects, primarily electric scooters and related infrastructure.

Several other companies, including TMSS, Progress Motors, Sena Hotel (Radisson Blu), Kazi LPG, Good Luck Filling Station, and Isha Kha Group, have either secured approval or are preparing investments in commercial charging stations.

According to Sreda, 32 commercial charging stations have received approval, but only nine are currently operational, including in Dhaka, Chattogram, Cox's Bazar, and Cumilla. Besides, thousands of home charging units have already been installed alongside newly sold EVs.

By comparison, India has 29,151 public EV charging stations, Nepal has around 400, while more than 100 stations have been licensed in Pakistan, according to available official data from the respective countries.

Sreda Director Aminur said commercial DC charging stations have already been approved for Rancon Motors and Progress Motors in Dhaka, Kazi LPG and Sena Hotel in Chattogram, TMSS along the Bogura-Rajshahi corridor and Good Luck Filling Station in Rajshahi.

"We have comprehensive guidelines covering land requirements, location, equipment quality, investment size and electricity quality," he said.

Meanwhile, the government is set to introduce 400 electric buses in Dhaka, aimed at reducing air pollution and modernising the capital's public transport system.

Transport experts have welcomed the initiative, but said the project's success will depend on developing adequate charging infrastructure, and maintenance facilities.

Power reliability, profitability remains biggest hurdles

Hafizur Rahman Khan, chairman of Runner Automobiles, said every BYD vehicle sold by the company is supplied with a home charger that can operate using a standard household electricity connection.

"Commercial charging stations are a different story," he said. "They require high-quality, uninterrupted power supply, and that remains our biggest concern."

He explained that home charging typically takes between 5-10 hours, whereas highway charging must be completed within 5-10 minutes using ultra-fast DC charging technology.

"BYD already has that technology. But Bangladesh currently lacks both the quality electricity supply and the supporting infrastructure needed to deploy it on a large scale," he said.

Establishing a conventional commercial DC fast-charging station requires an investment of around Tk1-Tk1.5 crore, while an ultra-fast charging station, including land acquisition and dedicated substations, could cost between Tk3-Tk5 crore, he said.

"After making such a large investment, operators will need years to attract enough customers to generate acceptable returns," Hafizur added.

Shahriar Hasan Utsho, co-founder of Crack Platoon Charging Solutions, said they are currently assisting dozens of businesses in establishing charging stations and obtaining regulatory approvals.

"There is strong investor interest, but everyone asks the same question: When will we recover our investment?" he said. "A DC charging station costs around Tk1-Tk1.5 crore, yet the number of EVs remains limited. No one can estimate how long it will take to break even."

He cited the example of a privately operated charging station in Bogura that sometimes goes an entire day without serving a single vehicle. "The staff remain idle because there simply are not enough EVs on the road yet," he said.

The manager of one charging station said his company invested nearly Tk70 lakh to install a 10-kW Level-2 charger, but customer numbers remain low. "This is still a new business in Bangladesh. We hope demand will gather momentum."

Sreda's Aminur acknowledged that deploying ultra-fast charging infrastructure nationwide would take time. "Given Bangladesh's current power system, we are prioritising DC fast-charging stations based on an energy-efficient model.

He said Sreda's immediate focus is to ensure uninterrupted electricity supply, and it arranges dedicated power support for charging stations depending on location and demand. Sreda is also focusing on introducing solar-based charging stations, he added.

Runner Chairman Hafizur Rahman Khan argued that private investors alone cannot build a nationwide charging network during the market's early stage.

"This business is still at a nascent stage. Initially, the government needs to take the lead by investing in charging infrastructure or providing financial support. Once the market matures and vehicle numbers increase, private investment will naturally follow," he said.

Companies build entire EV ecosystem

Runner Automobiles has established branded charging points in Dhaka, Cumilla, Chattogram, Bogura and Cox's Bazar for BYD customers while expanding technician training. The company said it has already sold more than 1,000 BYD vehicles in Bangladesh.

Samiul Hasan, chief marketing officer of Nasir Group, said, "We are investing across the entire ecosystem vehicle manufacturing as well as charging stations because we believe the market will expand significantly."

Mir Masudul Karim, managing director of Bangladesh Auto Industries, said the company's locally manufactured EVs will offer a driving range of more than 450km on a full charge and support fast charging in 30 minutes.

"We are supporting both home charging and commercial charging infrastructure alongside vehicle production," he said.

Sheetal Taslim, country lead for marketing and operations at Audi Bangladesh and Ekhon Charge, said the company has installed 150 home charging units and established five commercial charging stations across the country.

She said Ekhon Charge, Bangladesh's first and largest EV charging solutions provider, has the capability to support the establishment of charging stations anywhere in the country.

Execution now matters

A full highway charge typically costs between Tk308 and Tk759, making electric driving roughly 70% cheaper per kilometre than petrol-powered vehicles.

However, industry leaders said the next phase of Bangladesh's EV transition will depend less on investment announcements and more on execution.

According to Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI), around 6 million battery-powered three-wheelers already operate across Bangladesh, while only a few thousand electric passenger vehicles are officially registered.

"The actual number of EVs is much higher than official records. Without reliable data, planning and policymaking become difficult," he said.

He said charging infrastructures, reliable power, common technical standards, and an investment-friendly policy are essential to accelerating EV adoption.

Mohammad Wahid Hossain, chairman of the Bangladesh Energy and Power Research Council, said uninterrupted electricity would ultimately determine the industry's success.

"If EV adoption increases while electricity shortages persist, the sector cannot grow at the desired pace," he said, adding that Bangladesh also needs greater use of renewable energy and stronger coordination among government agencies.

Oil prices jumped and stocks fell again Tuesday after fresh US strikes against Iran that marked a new escalation in hostilities that has fuelled fears over their already fragile truce and the chances of another spike in inflation.Tech firms were once again in the crosshairs, with South Korea's Kospi extending a painful selloff as chip titan SK hynix continued to be routed amid growing fears about the AI boom.
The latest attacks came after Iranian forces struck a commercial ship in the Strait of Hormuz -- through which a fifth of global oil passes -- early Sunday, before announcing the closure of the waterway.That led to a series of US strikes on sites in the Islamic republic, which replied by hitting targets in Bahrain, Jordan, Kuwait and Oman.Before the latest US attacks, President Donald Trump told conservative radio host Hugh Hewitt on Monday that "we're going to hit them very hard tonight, and we're going to hit them hard tomorrow".

He later declared on Truth Social that the United States would be "known as 'THE GUARDIAN OF THE HORMUZ STRAIT'" and levy a 20 percent fee on all cargo shipped through the waterway.

While Iran's ports would again be blockaded, Trump said "all other countries will have fair and open use of the strait".However, he also said a deal with Tehran to end the crisis was still possible."Yeah, I think a deal is possible. Sure, I do," he told reporters in the Oval Office. "We had a deal with them two days ago and then they said 'Oh we can't make that deal. We have to negotiate it further.'"Oil prices shot up more than nine percent Monday over fears of renewed conflict and the possibility that a fresh surge in inflation could force the Federal Reserve and other central banks to hike interest rates soon.And they continued to rise Tuesday, piling on more than one percent."With Trump, one never quite knows how seriously to take such pronouncements, but Gulf allies would not be pleased with this plan, and it almost certainly violates international law," said BNZ's Jason Wong.

"The 20 percent levy would add about $16 to the cost of every barrel of oil passing through the strait on a typical supertanker.

"It remains to be seen whether the plan will stick -- probably not -- and whether it is merely a negotiating tactic aimed at getting Iran to pause its military strikes on shipping in the area."

The renewed hostilities once again dragged on equities, compounding the flight from tech firms that has characterised markets in recent weeks as traders worry that the sector's AI-led rally has gone too far.

Seoul again suffered heavy selling, with SK hynix shedding more than three percent, the day after a 15 percent collapse. Its New York-listed shares -- which soared more than 13 percent on their debut Friday -- plunged more than nine percent Monday.

Tokyo, Hong Kong, Sydney, Singapore, Taipei, Wellington, Manila and Jakarta were also sharply down.

The losses came at the start of a big week for traders, with earnings season about to kick off, Fed boss Kevin Warsh due to testify in Congress and US inflation data set to be released.

Meanwhile, Fed governor Christopher Waller stoked concerns over an early interest rate hike as inflation continues to remain elevated.

"If we get another hot reading on core inflation this week, then the (rate-setting committee) will need to consider tightening monetary policy in the near term," he said Monday.

They are the stock market’s dividend-free club.

The 21 listed companies have not paid shareholders any dividend for at least five years. Most have shut their factories, while others are burdened by constant losses.

Under stock exchange rules, these companies should already have been delisted. Market analysts say keeping them on the market is an anomaly by almost any international standard.

The Dhaka Stock Exchange (DSE) also acknowledges it has allowed the problem to persist for too long. The DSE says it is now reviewing the companies one by one before deciding on the next steps.

Even as the market considers action against these junk stocks, investors continue to trade them. And some are changing hands at prices higher than those of some of the country’s strongest listed companies.

According to DSE data, shareholders have invested Tk 2,286 crore in paid-up capital across the 21 companies. Paid-up capital represents the equity shareholders have committed through initial public offerings and subsequent share issues, including stock dividends.

In return, investors have received nothing from what has effectively become dead capital. In some cases, they have gone without any return for nearly a decade, as 15 of the 21 companies have paid neither cash nor stock dividends since 2016.

The companies are Bangladesh Services, Bangladesh Industrial Finance Company (BIFC), Fareast Finance and Investment (FFIL), Hami Industries, ICB Islamic Bank, Jute Spinners, Meghna Condensed Milk Industries, Meghna Pet Industries, Mithun Knitting and Dyeing, People’s Leasing and Financial Services, Savar Refractories, Shyampur Sugar Mills, Tallu Spinning Mills, Tung Hai Knitting & Dyeing, and Zeal Bangla Sugar Mills.

The remaining six companies issued a single stock dividend at some point during the past decade but have paid neither cash nor stock dividends in the past five years.

They are Appollo Ispat Complex, Delta Spinners, Familytex BD, International Leasing and Financial Services, Ring Shine Textiles, and Usmania Glass Sheet Factory.

Under the listing regulations, a listed security may be delisted if the issuer fails to declare a cash or stock dividend for five years from the date of its last dividend or from the date of listing.

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), said most people who buy these shares either do so without fully understanding what they are investing in or knowingly take the risk in the hope of making short-term profits.

“Market manipulators target these stocks because they belong to companies with relatively small paid-up capital. They create manipulative traps to lure inexperienced investors into buying them,” he said.

Saiful added that every market has a group of day traders who treat the stock market like a casino, chasing these gambling-type stocks.

On the impact of keeping such companies listed, the DBA president said, “Most of these are virtually non-existent companies. They will not be able to generate returns over the long term. Instead, they create noise in the market and undermine the overall ecosystem.”

“The number of such companies is increasing day by day. When investors in these companies incur losses, the ripple effects spread across the entire market.”

“Moreover, if the share price of these companies exceeds that of fundamentally sound companies, what kind of image does that create about the market?”

Saiful said such companies should be removed from the market. “Listing and delisting should proceed in parallel in the stock market.”

DSE Managing Director Nuzhat Anwar acknowledged that the exchange had allowed the problem to persist for too long.

“Decisions regarding many of these companies should have been taken much earlier, but they were not,” she said. “As a result, the problems have accumulated over a long period and reached their current state.”

“We are currently reviewing the matter,” she added.

The exchange said it is reviewing the companies individually, holding discussions before submitting its findings to the Bangladesh Securities and Exchange Commission (BSEC).

“We intend to clean up the situation,” Nuzhat said. “However, we want to ensure that any action we take is justified, which is why we are proceeding carefully and taking the necessary time.”

She said the DSE has recently suspended trading in several companies whose factories were closed but whose share prices continued to rise. In some cases, the companies themselves said there was no valid reason for the increase.

“Halting trading sends investors a signal that something is wrong,” she said.

“At the same time, we are working to bring more quality companies to the market so that investors have better investment opportunities and a wider range of sound investment options,” she added.

Apart from the 21 companies, another 13 appear to have found a way to remain listed. Each paid a token dividend of between 0.1 percent and 2 percent on a single occasion, apparently enough to stay within the five-year requirement.

Speaking at a public event last week, Masud Khan, the newly appointed chairman of the BSEC, said Bangladesh is an outlier in the way it manages its capital market.

“Most stock markets do not keep non-operational companies listed indefinitely, but Bangladesh does, leaving retail investors exposed to risks they may not fully understand,” he said.

The responsibility rests with the stock exchange as the primary regulator, said Masud, and the DSE is now trying to establish a more rational and transparent process.

Under the proposed approach, he said inactive companies could be given a fixed period, such as one year, to resume operations before facing further action.

The BSEC chairman also urged investors to be cautious about companies that are non-operational, are no longer going concerns, fail to hold annual general meetings or do not pay dividends.

Meanwhile, a senior DSE official, speaking on condition of anonymity, said the exchange had tried several times to delist these companies but backed down each time for fear of protests from investors.

Stocks opened higher on Tuesday, extending the previous session's gains as growing investor confidence, driven by recent regulatory reforms and supportive fiscal measures, outweighed concerns over the possibility of renewed geopolitical tensions in the Middle East.

By 11:10 am, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) had advanced 26 points, or 0.43 per cent, to 5,892, supported by strong buying in large-cap and fundamentally strong stocks.

Market operators said investor sentiment has continued to strengthen following the passage of the Finance Bill 2026, which introduced a range of incentives aimed at revitalising the country's capital market. They also noted that recent reform initiatives announced by the securities regulator have reinforced expectations of a more efficient and transparent market.

Analysts said the budgetary measures are expected to make equity investments more attractive, encourage greater participation from both retail and institutional investors, strengthen the mutual fund industry, and enable companies to raise long-term funds more efficiently through the capital market.

Trading activity also remained buoyant. Turnover on the premier bourse reached Tk 4.84 billion within the first one hour and 10 minutes of trading, reflecting sustained buying interest across major sectors.

Market breadth was broadly positive, with 238 issues advancing, 80 declining and 69 remaining unchanged by 11:10 am, indicating widespread gains.
The Chittagong Stock Exchange (CSE) also witnessed a positive trend. Its benchmark CASPI index rose 18 points to 15,729, while the CSCX index gained 12 points to 9,646 in early trading.

The Bangladesh Securities and Exchange Commission (BSEC) has approved the introduction of intraday trading, in a move aimed at modernising the capital market and improving trading efficiency.

Intraday trading allows investors to buy and sell stocks within the same day, aiming to capitalise on short-term price movements and market volatility.

The decision was taken at the regulator’s commission meeting held yesterday, chaired by BSEC Chairman Masud Khan, according to a press release.

The commission approved the necessary arrangements to introduce the system, subject to completing required preparations before launch, it said.

Stock brokers had recently demanded the facility, prompting the BSEC chairman to announce at an event that it could initially be introduced for a select group of fundamentally strong stocks.

The regulator said the move is intended to make the stock trading system more dynamic, efficient and modern.

Meanwhile, the commission also approved, in principle, amendments to the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025. The detailed amendment will be published on the commission’s website for public feedback.

Separately, BSEC approved Royal Footwear PLC’s proposal to raise Tk 12 crore through an Initial Qualified Investor Offer (IQIO), issuing 1.2 crore ordinary shares at Tk 10 each to qualified investors.

Royal Footwear is a fully export-oriented manufacturer that supplies footwear to several countries, including the US brand ROSS. Proceeds will go toward repaying bank loans, improving its working environment, purchasing machinery, and meeting IPO-related expenses.

According to the company’s audited financials as of December 31, 2025, its net asset value per share stood at Tk 27.54 with revaluation, and half-year earnings per share stood at Tk 0.82.

Prime Bank Investment PLC is the issue manager, with Prime Bank Investment PLC and EC Securities Limited acting as underwriters.

The commission approved the proposal submitted by Bangladesh General Insurance Company, trustee of Vanguard AML BD Finance Mutual Fund One, to redeem the fund as its tenure expires.

Vanguard Asset Management Limited is the asset manager of the fund; its total unit capital fund is Tk 104.32 crore, with a face value of Tk 10 per unit.

In a major regulatory crackdown, the stock market watchdog has initiated the process of cancelling the licences of six more merchant banks over allegations of prolonged inactivity and capital deficiency.
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The move was triggered by preliminary findings that some of the institutions had long failed to meet minimum capital requirements, while the others faced accusations of persistent regulatory non-compliance and prolonged operational inactivity.

The merchant banks facing licence cancellation are FAS Capital Management, Imperial Capital, NDB Capital, Riverstone Capital, HAL Capital and Roots Investment.

"Our preliminary investigation uncovered serious irregularities," said Md. Abul Kalam, executive director and spokesperson of the Bangladesh Securities and Exchange Commission (BSEC).Bangladesh Investment Guide

The commission has now ordered detailed, case-by-case investigations into the operational and financial conditions of the merchant banks before taking a final decision. The affected merchant banks will also be given an opportunity to explain their positions and defend themselves as part of the regulatory process.

Officials said investigators would examine why the firms had failed to restore their capital positions despite repeated regulatory warnings and whether there were any governance failures, negligence or violations of securities laws.

Under the Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rules, 1996, a full-fledged merchant bank must maintain a minimum paid-up capital of Tk 250 million. In addition, its continuous net assets must not fall below 50 per cent of the paid-up capital to ensure financial soundness and investor protection.

The commission also ordered separate investigations into UniCap Investments and GSP Investments over their failure to maintain the required net capital. At the same time, BRAC EPL Investments has been asked to explain why its net capital fell below the regulatory threshold.

The Market Intelligence and Investigation Division has been directed to conduct comprehensive investigations into UniCap Investments and GSP Investments, focusing on the reasons behind their capital erosion, their overall financial health, compliance with securities laws and any governance lapses.

"If investigators find evidence of irregularities, negligence or violations of securities laws, legal action will be taken against those responsible," Mr Kalam said.

The latest move is one of the toughest enforcement actions against merchant banks in recent years, reflecting the new BSEC commission's determination to strengthen market discipline, improve governance and ensure that licensed intermediaries remain financially capable of protecting investors' interests.

Finance Minister Amir Khosru Mahmud Chowdhury on Monday said the International Monetary Fund (IMF) has acknowledged the government’s financial reform efforts and respected its political responsibility towards protecting public welfare as both sides discussed the framework for a new IMF-supported programme.
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Speaking to reporters after a meeting with IMF Mission Chief for Bangladesh and Hong Kong, Ivo Krznar, at the Finance Ministry, the minister said the discussions focused on the foundation, sequencing and overall policy direction of a future programme rather than detailed conditions.

“The basis on which the new IMF programme will be structured has been clarified, and the IMF has agreed with the proposed framework,” the finance minister said.

He said the reforms would be implemented gradually, taking into account Bangladesh’s economic realities and maintaining continuity in the ongoing reform agenda.

“Major changes cannot be introduced overnight. The IMF also agrees that reforms should be sequenced in line with the country’s economic situation and priorities,” he said.

Both sides agreed that reforms should be carried out step by step based on national priorities instead of following a rigid timeline, he said.

Amir Khosru also said the IMF has shown respect for the responsibilities of a democratically elected political government in safeguarding public welfare while pursuing economic reforms.

“The country’s economic decisions will be taken by protecting the interests of the people,” he said.

The finance minister said the IMF delegation expressed satisfaction over the progress made during the current government’s first four months, particularly in financial sector reforms, the development of the capital market and revenue collection.

He claimed that the IMF recognised the government’s tax collection performance during the four-month period as a significant achievement and held positive discussions on proposals to further raise Bangladesh’s tax-to-GDP ratio.

On the issue of subsidies, the minister said no detailed discussions has yet taken place regarding specific conditions or policy measures.

“We have only discussed the basic framework of the new programme. Detailed issues, including subsidies, will be taken up during subsequent negotiations,” he said.

Khosru said the negotiations would continue over the coming months, with the next round of discussions expected to take place on the sidelines of the World Bank-IMF Annual Meetings in September or October.

He expressed optimism that the government’s reform-oriented performance would provide a solid foundation for finalising a new IMF programme.

Deutsche Bank has paid an A$2 million ($1.3 million) penalty for misreporting more than 260,000 over-the-counter (OTC) derivative transactions, Australia's securities regulator said on Monday.

The Australian Securities and Investments Commission (ASIC) issued the infringement notice after finding that the German bank failed to accurately report the 'direction' field data across foreign exchange and commodities transactions between 21 October 2024 and 15 August 2025.

ASIC considers the direction data reporting failures were systemic and reflected deficiencies in Deutsche Bank's internal reporting framework.

Deutsche Bank has cooperated with the investigation and is implementing measures to prevent further reporting errors, the watchdog said.

Deutsche Bank declined a Reuters request for comment.

The Bangladesh Securities and Exchange Commission (BSEC) has launched an ambitious reform drive to modernise the country's capital market by reducing operational barriers, introducing technology-based solutions and strengthening investor protection.

The reform roadmap includes faster share settlement, digital order placement, artificial intelligence-based market surveillance, revised margin lending rules and greater flexibility for stock exchanges in setting market protection measures.

At the centre of the reform agenda is the plan to reduce the securities settlement cycle from the current T+2 to T+1, with a long-term target of introducing same-day settlement, or T+0.

The BSEC and stock exchanges are working with Bangladesh Bank to implement the transition. Dhaka Stock Exchange (DSE) Managing Director Nuzhat Anwar told The Business Standard that a Bangladesh Bank team recently visited the bourse to review its clearing and settlement infrastructure.

She said the DSE has requested the central bank to extend the Real-Time Gross Settlement (RTGS) window by two hours from 4pm to facilitate faster transactions. Once necessary regulatory changes are approved, the move could significantly increase trading efficiency.

To improve market liquidity, the regulator is also preparing to introduce intraday trading, commonly known as script netting. Initially, the facility will be available for fundamentally strong companies, including those listed under the DSE 30 index.

The system will allow investors to buy and sell the same security within a single trading session, giving active investors more flexibility and potentially increasing market turnover.

The BSEC is also reviewing margin lending regulations. BSEC Chairman Masud Khan said the current rules are overly restrictive, particularly the provision that stops margin facilities when a stock's price-earnings (P/E) ratio crosses 30.

Under the proposed framework, the regulator will set broad guidelines while allowing brokerage firms to develop their own risk management systems and determine lending decisions based on their internal assessments.

A major reform initiative is the introduction of digital share order placement to reduce risks associated with the existing paper-based system. The BSEC chairman said physical signatures on buy and sell orders have created opportunities for fraud and misuse.

Under the proposed digital system, investors will be able to place orders directly through mobile applications and secure online platforms. Each transaction will be followed by instant SMS and email confirmations, while the Central Depository Bangladesh Limited (CDBL) will provide daily automated transaction summaries.

The regulator has also directed the DSE to upgrade its surveillance system within six months and transition to a fully artificial intelligence-based monitoring system within one year.

Unlike the existing system, where investigations into suspicious transactions can take months, the AI-powered system will be designed to identify market irregularities instantly and allow quicker regulatory action against manipulation.

The BSEC has also restored the authority of stock exchanges to independently determine trading control measures, including circuit breakers and market protection limits.

Meanwhile, the DSE Brokers Association (DBA) has proposed further reforms, including calculating broker margin requirements on a net basis instead of the current gross basis. Brokers argue that the existing system forces them to maintain excessive margins and borrow additional funds from banks.

The BSEC has indicated that it is considering stakeholder demands as part of its broader effort to remove unnecessary regulatory hurdles and improve market efficiency.

"The stock market is a science, and we are restoring the science of valuation to protect the hard-earned capital of every investor," BSEC Chairman Masud Khan said.

The Export Promotion Bureau (EPB) has proposed a total export target of $66 billion for the 2026-27 fiscal year, comprising $57 billion from merchandise exports and $9 billion from services sector.
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The EPB has submitted the draft proposal to the commerce ministry, requesting prompt review and approval of the targets.

The proposed benchmarks were finalised during a stakeholder consultation, chaired by EPB Vice Chairman and CEO Mohammad Hasan Arif.

Representatives from government ministries and agencies, and export-oriented trade organisations, including BGMEA, BKMEA, BAPA, the Metropolitan Chamber of Commerce and Industry (MCCI), and the Bangladesh Frozen Foods Exporters Association attended the meeting held at the end of last month.

During the consultations, officials and trade leaders evaluated the global economic outlook, domestic macroeconomic indicators, supply chain readiness, and market diversification strategies before recommending the export target, according to official documents.

According to the EPB, while the export sector has shown resilience, it continues to face persistent global headwinds. The economic ripple effects of the Russia-Ukraine war, escalating Middle East tensions involving Israel and Iran, soaring inflation, and the high cost of imported raw materials have squeezed exporters' profit margins.

The bureau also raised concerns that the country's graduation from Least Developed Country (LDC) status will gradually reduce access to preferential trade benefits.

When contacted, Commerce Secretary Md Ataur Rahman Khan said, "We have already held a meeting on the export target, which will be announced soon after finalising it for the current fiscal year. The EPB is currently working on the issue."

At the meeting, business leaders urged the government to introduce targeted policy support to help exporters meet the ambitious target.

They called for lower logistics costs, faster implementation of automated customs and trade facilitation systems such as the National Single Window, rationalisation of import duties on industrial raw materials, particularly for the furniture, plastics and leather sectors, and timely disbursement of cash incentives.

Furthermore, exporters stressed the need to accelerate negotiations on bilateral and regional trade agreements, including Free Trade Agreements (FTAs), Comprehensive Economic Partnership Agreements (CEPAs) and Economic Partnership Agreements (EPAs), with major markets such as the European Union, Japan and South Korea to safeguard market access post-LDC graduation.

The Ready-Made Garment (RMG) sector, which faced a slight negative growth curve recently due to weakened consumer purchasing power in Western markets, is expected to remain the primary engine of the country's export earnings.

According to official documents, the EPB has proposed an export target of $45.8 billion for the sector in FY27, including $24.11 billion from knitwear and $21.69 billion from woven garments.

The EPB has also set ambitious goals for other export-oriented manufacturing sectors.

Among other sectors, leather and leather goods have been assigned a target of $1.44 billion, including $810 million from leather footwear.

Agricultural products are expected to generate more than $1.17 billion, including $230 million from tobacco and $170 million from fruits.

Jute and jute goods exports have been targeted at $1.017 billion, with jute yarn and twine projected to contribute $620 million.

Home textiles are expected to earn $1.065 billion, engineering products $803.8 million, and pharmaceutical exports $290 million.

The EPB has set a $9 billion target for service exports in FY27.

Transportation services are expected to generate $1.65 billion, followed by other business services at $1.54 billion.

Computer and IT services have been assigned a target of $855 million, including $750 million from data processing and hosting services, while telecommunications services are projected to earn $935.82 million.

Officials said achieving the overall export target would depend on stronger performance across both the manufacturing and services sectors amid an increasingly challenging global trade environment.

Bangladesh's strategic pivot toward non-traditional markets has hit a major milestone as its year-on-year exports to Latin American nations are increasing significantly.

Rising imports by Brazil and Chile have helped Bangladesh make a strong foothold in the South American market, analysts say.

Merchandise shipments to Latin America, especially ready-made garment (RMG), saw a 29.15 per cent growth over the last four fiscal years, pushing Bangladesh one step ahead in diversifying its export market, according to the Export Promotion Bureau's (EPB) official data.

The robust growth underscores the expanding footprint of local manufacturers in the South American continent.

This surge comes at a critical juncture as the nation actively pursues aggressive market diversification strategies to mitigate geopolitical vulnerabilities in its conventional Western strongholds.

According to the EPB data, Bangladesh exported goods worth $367.82 million to the South American market in the fiscal year 2022-23, which grew to $475.04 million in FY26.

In FY24, Latin American countries imported Bangladeshi products worth $362.02 million, which rose to $442.06 million in the following year.

Some Bangladeshi garment makers say if MERCOSUR - the Southern common market trade bloc comprising Brazil, Argentina, Uruguay, and Paraguay - eliminates tariff barriers, exports would boost significantly.

Bangladeshi products face high tariffs of up to 35 per cent when entering MERCOSUR.

This rate is part of the bloc's Common External Tariff (CET).

The high duty applies to non-member countries and makes Bangladeshi goods like clothing more expensive to sell in South America.

Local businessmen say men and women suits, sweaters, shirts, T-shirts, jute and jute goods, and leather and leather goods are the major export items from Bangladesh to South America.

According to the EPB, Brazil is the leading importer of Bangladeshi products.

Bangladesh exported goods worth $109.2 million to Brazil in FY23, which increased to $147.58 million in FY2024.

In FY25, shipments maintained momentum and reached $187.34 million, which jumped further to $ 214.69 million in FY26.

Beyond Brazil, Bangladeshi goods are seeing a notable momentum in a trio of South American economies.

Benefiting from a long-standing zero-duty benefit arrangement enacted for developing nations, Chile has evolved into a vital partner.

In FY26, Bangladesh exported goods worth $169.64 million to Chile.

Major shipments to the market included knitted T-shirts, formal men suits, and women's apparel.

Steadily moving up the ranks, Uruguay has absorbed escalating volumes of knitwear, sweaters, and specialised woven items as it imported $39.28 million worth of goods in FY26.

This absorption helped solidify Bangladesh's position in the Southern Cone of the continent.

While the overall trade volume remained relatively modest at $34.93 million in FY26, Argentina recorded a dramatic, multi-fold percentage increase in its imports from Bangladesh over the mid-term. Demand was spearheaded by knit sweaters, activewear, raw jute products, etc.

Analysts say the 29.15 per cent upward trajectory in Latin American shipments indicates that local exporters are successfully penetrating new geographical frontiers.

Trade experts highlight that navigating South America's high tariff barriers remains an operational hurdle.

To lock in these hard-won gains, trade groups like the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) are advising the government to initiate formal Free Trade Agreement (FTA) negotiations with MERCOSUR.

Securing preferential access is deemed essential for preserving cost competitiveness following Bangladesh's official graduation from the Least Developed Country (LDC) status.

Incessant rain across the country over the past week, coupled with flooding in the southeast, is threatening to push up prices of food and other essential goods.

Businesses say the downpour has disrupted the entire supply chain, from loading and unloading vessels at Chattogram port to trading at major wholesale markets and transporting goods across the country.

The monsoon rains have also submerged large areas of farmland, damaging vegetables and other crops. Getting farm produce to major urban markets has become more difficult, with vegetable prices already rising in Dhaka.

Some dry food items, including flattened rice, puffed rice, vermicelli, biscuits, noodles and dates, have become more expensive as demand has surged because of flood relief campaigns.

Businesspeople say prices of most other food items are stable for now, but prolonged disruptions could trigger wider market volatility.

Bangladesh relies heavily on imports for essential commodities such as sugar, edible oil and wheat. These bulk goods are transferred from mother vessels to lighter ships, which then carry them across the country through inland waterways.

Over the past week, rough seas and heavy rain severely disrupted the transfer of cargo from larger ships to lighter vessels.

Only five to 10 lighter vessels loaded cargo from larger ships each day over the past week, compared with the usual daily average of 40 to 50, said Gazi Belayet Hossain, president of the Bangladesh Cargo Vessel Owners’ Association.

Loading and unloading resumed yesterday morning as sea conditions improved. However, Belayet said more than 400 lighter vessels were still waiting to load cargo as of yesterday, and it would take a few days for operations to return to normal.

Meanwhile, traders at major wholesale markets in Chattogram’s Khatunganj, Chaktai and Asadganj markets said daily trading had fallen sharply because buyers from nearby districts were unable to reach the markets.

“Business has slowed because wholesale buyers from different districts are unable to come to the market,” said Aminul Haque, a wholesaler at Khatunganj.

Demand for dry food, however, has risen. Prices of chira, muri and vermicelli have increased by Tk 3 to Tk 5 per kilogramme.

The wholesale price of a 25-kilogramme sack of standard-grade flattened rice has risen to Tk 1,300 from Tk 1,200 a week ago. Puffed rice now sells for Tk 65 to Tk 68 per kilogramme, up by Tk 2 to Tk 3, while a 30-kilogramme basket of loose vermicelli has increased to Tk 1,050 from

Tk 900. Prices of dates have also risen by Tk 20 to Tk 30 per kilogramme.

“We think this is a temporary increase driven by the floods,” Aminul told The Daily Star.

Heavy rain also disrupted the loading of essential goods onto trucks, while transport shortages made the situation worse.

As many as 408 unions across Chattogram division have been affected by flooding, waterlogging and landslides. Khagrachhari has been the worst-hit district, with around 73 percent of its area affected, followed by Chattogram at 50 percent and Cox’s Bazar at 49 percent.

Road links with Cox’s Bazar, Bandarban, Rangamati and Khagrachhari have been disrupted by waterlogging and landslides in hilly areas, making it difficult to transport goods to those districts, traders said.

Despite these disruptions, businesses in Chattogram said wholesale supplies of rice, lentils, sugar and edible oil are adequate. However, the market could become volatile if the rain and flooding continue.

Like Chattogram, wholesalers in Dhaka also reported supply disruptions.

Mostafa Kamal, a vegetable wholesaler at Karwan Bazar, said supplies have fallen because of heavy rain and flooding, pushing wholesale prices up by about 10 percent compared with normal levels.

He said persistent rain has disrupted harvesting and transport, making it difficult for farmers to send produce to market.

Abu Bakar Siddique, a grocery trader at Karwan Bazar, said flooding and waterlogging have disrupted supplies of edible oil, sugar and flour.

“For the last four to five days, companies have been unable to meet even half of the existing demand,” he said.

Although wholesale prices have risen only slightly, retail prices of some essential goods, especially dry food items, have increased because of higher transport costs and supply shortages, he added.

Meanwhile, some industrial groups said flooding and waterlogging have disrupted their supply chains, making it difficult to deliver products.

SM Mujibur Rahman, head of accounts of Meghna Group of Industries, said the company usually delivers 280 to 300 tonnes of goods a day but managed only around 50 to 60 tonnes daily over the past week.

Mujibur said the situation has worsened after rainwater partially submerged the company’s depot premises in Chattogram. The company was unable to move vehicles from the depot for four days.

Md Shafiul Ather Taslim, director for finance and operation of TK Group, said the company had been struggling to secure enough transport over the past two to three days.

“When available, vehicles were unable to reach many areas due to a cut off supply network.”

He added that deliveries had been disrupted in several areas, including Rangamati, Khagrachhari, Bandarban, Cox’s Bazar, Satkania, Lohagara and parts of Sylhet city.

Taslim said the impact has not yet become significant because dealers still have enough stock available.

The Bangladesh Securities and Exchange Commission (BSEC) has undertaken a series of plans to revive the country's long-sluggish stock market by increasing the participation of institutional investors through removal of regulatory barriers in existing policies.

The newly appointed commission plans to review IPO (Initial Public Offering) rules to revive the primary market, simplify margin rules to improve money flow, and introduce performance-based mechanisms for mutual funds to attract institutional investors.

In an interview with The Business Standard, the newly appointed BSEC Chairman Masud Khan said his immediate priority is to maximise deregulation to ensure the market's natural growth, and aggressively bring fundamentally strong scrips and listings into the market.

He also plans to ease bureaucratic bottlenecks by cutting down paper work through the introduction of automation in his office.

"The fundamental weakness of Bangladesh's stock market is that it has historically been dominated by retail investors. Institutional participation is virtually absent in the true sense," Masud Khan said.

He said the commission has already begun implementing reforms. "On my second day in office, I abolished the floor price mechanism. It had paralysed the market for nearly two years and caused unprecedented suffering."

He also cited resolving the Beximco Pharmaceuticals GDR issue on the London Stock Exchange and strengthening market surveillance as early achievements.

"The Dhaka Stock Exchange has been instructed to modernise its surveillance system within six months and introduce AI-based market monitoring within a year," he said.

IPO proceeds to be allowed for debt repayment

Current regulations limit the use of IPO proceeds for repaying bank loans to 30%.

Masud Khan said the commission is considering removing or substantially relaxing the restriction. "Companies burdened with expensive debt should be able to raise equity to deleverage. Lower borrowing costs ultimately benefit shareholders."

He also said IPO approvals have become excessively slow because past financial scandals prompted regulators to adopt an overly cautious approach.

According to him, the current Public Issue Rules contain several impractical provisions, including the requirement for at least 40 eligible institutional investors to participate in book building before price discovery can begin.

"In a market as shallow as Bangladesh's, that threshold is unrealistic," Masud said.

He added that the Dutch auction mechanism under the book-building system also needs reform. "We are re-examining the entire pricing mechanism to ensure companies receive fair, market-driven valuations."

Direct listing to be opened for high-cap private companies

The BSEC chairman said one of his biggest priorities over the next five years is to reform Bangladesh's direct listing regulations.

Current rules allow only state-owned enterprises to use direct listing.

"Right now, our direct listing rules are incredibly archaic; they explicitly state that only state-owned enterprises can utilise direct listing, completely barring the private sector. This is ridiculous, and I am going to change it immediately." he said.

"Furthermore, the old rules forced companies to offload a mandatory 25% of their shares right away. I am going to slash that threshold down to 10%," he added.

According to Masud, companies such as Banglalink or Incepta Pharmaceuticals should not have to undergo lengthy evaluations because they are already well-established businesses.

"The only time required will be for price discovery and the actual market offer," he said.

Large companies may be required to list

Masud Khan also wants legislation requiring large companies operating with substantial public funds to become listed entities.

He proposed defining Public Interest Entities (PIEs) as companies whose combined equity and outstanding debt exceed Tk300 crore. "If a private company's total capital employed (equity plus outstanding debt) crosses a threshold of, say, Tk300 crore, it is effectively operating on massive public funding. In my view, such companies should be legally mandated to list on the stock exchange."

He also proposed requiring multinational companies operating in Bangladesh to incorporate locally and list on the domestic bourse.

"Institutions such as HSBC and Standard Chartered operate as branches. I believe they should register as local companies and become listed," he said.

Pension, provident funds should invest in the market

Masud said provident, pension and gratuity funds represent a major untapped source of institutional investment.

Although legal amendments already allow up to 25% of these funds to be invested in listed equities, fund managers have largely avoided doing so because of market volatility.

"We must fix the institutional pipeline by enforcing the Trust Act. Right now, countless companies are flagrantly violating the Trust Act by taking their provident and gratuity funds and simply parking them as standard deposits in commercial banks," he said.

BSEC to introduce key performance indicators of mutual funds

The BSEC also plans to introduce internationally recognised key performance indicators (KPIs) for mutual funds.

These would include measures such as one-year NAV growth, rolling returns and expense ratios, with all data published on a central website.

"Investors will easily see which funds perform well and which consistently underperform," BSEC chairman said.

He ruled out extending the tenure of closed-end mutual funds. "Let me state this with absolute clarity: As long as I am the Chairman of the BSEC, no extension for any closed-end mutual fund will ever be granted."

Margin rules to be simplified

Masud Khan said existing margin lending regulations are overly restrictive and limit liquidity in the market.

Commercial banks currently have plenty of liquidity, but much of it cannot flow into the stock market because of rigid lending rules.

He said regulations such as suspending margin lending once a stock's price-to-earnings ratio exceeds 30 are too inflexible.

"BSEC will only set broad KPI boundaries. Beyond that, brokers will have the freedom to design their own risk management frameworks and determine who to lend to," Masud khan stated.