Institutional reforms, stronger negotiating capacity and greater policy independence will determine Bangladesh's next phase of development, economists and business leaders said today (2 August) at a discussion organised by the Policy Research Institute (PRI).

The remarks came during a seminar titled "Development Strategy and Policy Independence: Navigating Bangladesh's Development Pathway," which brought together economists, academics, business leaders and policymakers to discuss the country's long-term development strategy.

Speaking as the featured speaker, Anisuzzaman Chowdhury, professor emeritus at Western Sydney University and former special assistant to the chief adviser of the interim government, said policy independence is fundamental to Bangladesh's long-term economic development.

He said Bangladesh's economic transformation was built on independent policy choices, including the privatisation initiatives introduced during former president Ziaur Rahman's administration, the rise of the ready-made garment industry and agricultural integration.

However, reforms have increasingly been shaped by external pressures rather than national priorities. Citing South Korea and Vietnam, Anisuzzaman said their success stemmed from pursuing consistent, nationally driven policymaking.

He also stressed the need to strengthen social capital, empower civil society, remove vested interests and depoliticise public institutions to ensure effective governance and greater policy autonomy.

He expressed optimism that Bangladesh's young population would increasingly drive demand for reforms as tightening global immigration policies make overseas migration more difficult.

Moderating the discussion, Zaidi Sattar, chairman of PRI, said, "Bangladesh has significantly reduced its dependence on foreign aid, which now accounts for less than 2% of GDP, while more than 90% of its external public debt remains concessional, carrying an average interest rate of 1.3% and a 23-year repayment period."

Other panellists also stressed the need for reforms. Kamran T Rahman, president of the Metropolitan Chamber of Commerce and Industry, said governance and reform conditions attached to World Bank and IMF financing largely reflect reforms Bangladesh should pursue regardless.

Fahmida Khatun, executive director of the Centre for Policy Dialogue, said stronger institutions and negotiating capacity would be essential as Bangladesh graduates from least developed country status amid an increasingly polarised global environment.

AKM Waresul Karim, dean of the School of Business and Economics at North South University, warned that rising public debt, expensive domestic borrowing and banking sector weaknesses pose long-term risks, calling for prudent fiscal management and financial sector reforms.

Selim Raihan, executive director of Sanem, said the outcomes of engagement with development partners depend largely on Bangladesh's own negotiating capacity.

Md Rezwan Selim, vice-president of BGMEA, raised concerns over education quality and brain drain, while guest speaker Imran Matin said no public policy can be implemented independently of the country's strong social and community forces.

Participants agreed that sustaining Bangladesh's development momentum will require stronger institutions, policy consistency and broader engagement among policymakers, businesses, researchers and civil society.

The United Kingdom has reaffirmed its commitment to provide up to £2.0 billion in financing support through UK Export Finance (UKEF), reinforcing its long-term economic partnership with Bangladesh as the country prepares to graduate from least developed country (LDC) status.

The support also aims to encourage British companies to trade and invest in Bangladesh, and strengthen Bangladesh's overall market competitiveness as the country seeks to sustain its export competitiveness in key overseas markets, sources said. Although the credit facility had been offered previously, its strategic importance was recently reaffirmed in a formal letter from British High Commissioner Sarah Cooke to Bangladesh's Commerce Secretary, underscoring London's long-term economic partnership with Dhaka.

The commitment was conveyed in a congratulatory letter from the British High Commissioner to Md Ataur Rahman Khan on his appointment as Commerce Secretary.

According to the letter, the UKEF facility will help mobilise financing for projects involving UK goods and services, encourage British companies to expand their business in Bangladesh, and create new opportunities for Bangladeshi exporters.

The envoy said bilateral trade between the two countries reached £4.5 billion in 2025, marking 13 per cent year-on-year growth and reflecting the strengthening commercial relationship.

She also noted that cumulative UK foreign direct investment (FDI) in Bangladesh had reached £848 million by the end of 2024.

Reaffirming the UK's continued market access support, Ms Cooke said Bangladesh remains the single largest beneficiary of the Developing Countries Trading Scheme (DCTS).

Under the scheme, Bangladesh will continue to receive the UK's most generous duty-free preferences during a three-year transition period after LDC graduation.

Thereafter, the country will move to the DCTS Enhanced Preferences tier, under which 92 per cent of UK tariff lines, including ready-made garments (RMG), will continue to enjoy duty-free market access.

The letter also highlighted revised DCTS rules of origin for ready-made garments, saying the updated provisions are intended to preserve Bangladesh's preferential access to the UK market while providing greater certainty for exporters, manufacturers and British buyers over the long term.

To maximise utilisation of the financing package, the British High Commission in Dhaka will organise webinars and business outreach programmes to familiarise Bangladeshi companies with UKEF financing facilities and other UK trade support mechanisms.

The High Commissioner also expressed interest in meeting the Commerce Secretary to explore new avenues for expanding bilateral trade, investment and broader economic cooperation.

Sources said the financing pledge signals the UK's intention to remain a key long-term economic partner for Bangladesh as the country transitions beyond LDC status and pursues higher-value trade and investment.

Trade experts and economists said the biggest challenge of LDC graduation is retaining preferential market access.

They noted that the UK's DCTS benefits, together with more flexible rules of origin, would help reduce long-term uncertainty and reassure foreign buyers to place long-term orders with confidence.

They added that the £2.0 billion credit facility presents a significant opportunity.

However, unless bureaucratic bottlenecks in project implementation are addressed and the financing is channelled into high-quality, sustainable projects, Bangladesh will not be able to fully realise its benefits.

They also said that, even with continued duty-free market access, compliance with environmental, social and governance (ESG) standards, alongside improvements in infrastructure, will remain essential for maintaining competitiveness in the UK market.

Commenting on the £2.0 billion UKEF facility, Professor Mustafizur Rahman, Distinguished Fellow at the Centre for Policy Dialogue (CPD), said the financing model offers substantial mutual benefits by strengthening exports for both the UK and Bangladesh while supporting a smooth transition from LDC status.SDG financing guidance

However, he cautioned that the ultimate success of the financing package would depend largely on how effectively the supported projects are designed and implemented.

He said Bangladesh must urgently enhance domestic productivity, develop workforce skills and strengthen international marketing capacity.

At the same time, reliable electricity and gas supplies, along with improved physical infrastructure, would be essential to maximise the benefits of the investment

The government and private-sector leaders have agreed to adopt the "Vietnam model" as a benchmark to diversify Bangladesh's export basket and accelerate outward trade growth, outlining a series of policy interventions aimed at eliminating longstanding bottlenecks to trade and investment.

The decision emerged from a high-level, four-hour interactive meeting between Prime Minister Tarique Rahman and top private-sector entrepreneurs at the Prime Minister's Office (PMO) in Tejgaon on Saturday.

Organised by the Bangladesh Investment Development Authority (BIDA), the meeting focused on export diversification, trade facilitation, and how to tackle the ongoing industrial power crunch.

Speaking at the session, Prime Minister Tarique Rahman expressed optimism that joint efforts between the public and private sectors could transform the national economy within the next four to five years.

"We all acknowledge that there are many problems, but if we work together, we can overcome them," the Prime Minister said. Noting that his administration -- less than six months in office -- has already held multiple sits-down with the business community, he announced that follow-up dialogues would take place every two to three months to monitor progress.

Of the 28 issues raised during the previous consultation, official sources confirmed that decisions were already taken on 21, with implementation underway for the remaining seven.

Key measures include introducing 24-hour operations at Chattogram Port and Dhaka airport, establishing internationally accredited testing laboratories under public-private partnership (PPP) arrangements for export products, and expediting business-related approvals and trade facilitation.

During the meeting business leaders called for easier access to credit, greater policy support and a more business-friendly environment to facilitate investment and industrial growth. They also appreciated a number of recent government initiatives and expressed satisfaction with the progress made so far.

Speaking after the meeting, Meghna Group of Industries (MGI) Chairman Mostafa Kamal said the Prime Minister held a candid and constructive discussion with business leaders.

He said that effective action had already been taken on eight to nine of the 20 agenda items discussed at the previous meeting. To monitor progress, it was decided that the Prime Minister would hold follow-up meetings with business leaders in every two months.

"The business community expressed satisfaction with the current investment-friendly environment," he added.

However, several participants said they had been requested not to make individual comments to the media after the meeting.

Requesting anonymity, one business leader told The Financial Express that the discussions were entirely focused on boosting exports rather than addressing company-specific issues.

"No participant raised any individual business concerns. We discussed export opportunities and challenges under the ten agenda items prepared by the Prime Minister's Office," he said.

Business leaders highlighted persistent gas and electricity shortages as well as tariff and non-tariff barriers affecting exports. According to the participant, the Prime Minister immediately instructed the relevant ministers and senior officials to resolve several issues, while the officials concerned assured the meeting of prompt follow-up.

Another business leader said the government confirmed that Chattogram Port would soon begin round-the-clock operations, a long-standing demand from exporters first raised at the previous meeting to speed up export shipments.

The participants also highlighted the lack of internationally recognised testing facilities as a major obstacle to exports.

Following discussions, the Prime Minister proposed establishing internationally accredited testing laboratories through PPP arrangements, under which the government would provide land while private investors would finance and operate the facilities. Foreign investment in such laboratories would also be welcomed, business leaders said.

Another business leader said the pharmaceutical industry received special attention during the discussions.

He said the meeting reviewed Bangladesh's post-LDC graduation challenges, particularly the possible loss of patent-related flexibilities for the pharmaceutical sector. Discussions focused on accelerating the implementation of the API Industrial Park and ensuring policy support for domestic production of active pharmaceutical ingredients (APIs).

"We also informed the Prime Minister that international certification remains a major hurdle for pharmaceutical exports. We requested that certification authorities from the US, the UK and other developed countries conduct inspections in Bangladesh and that recognition by overseas regulatory authorities be facilitated," the participant said.

Business leaders also proposed visa-free entry for investors from the United Kingdom, the United States, Japan and South Korea, along with a streamlined online visa system to make it easier for investors from all countries to obtain Bangladeshi visas.

Following the meeting, Prime Minister's Office spokesperson Mahdi Amin told reporters that the government had decided to introduce uninterrupted 24-hour services at the country's ports to facilitate import and export trade, with implementation expected shortly.

He said the government also pledged full policy support to revive the private sector and overcome the prolonged economic slowdown.l

Mahdi Amin said Bangladesh had regained democratic momentum and broader economic stability under the leadership of Prime Minister Tareq Rahman.

He added that Sergio Gor, a representative from the United States, had highly appreciated the government's positive initiatives over the past five months.

As part of growing international interest, a delegation comprising 45 business executives and investors from 25 leading US companies is expected to visit Bangladesh by the end of next week to explore business opportunities, he said.

The spokesperson noted that years of authoritarian rule had left many state institutions requiring structural reforms. He added that the meeting included extensive discussions on resolving critical challenges, particularly in the power and energy sectors.l

Another business leader, speaking on condition of anonymity, told The Financial Express that the country's energy situation dominated the nearly four-hour discussion.

"Energy has become the most pressing challenge facing all industries," he said.

"The most encouraging aspect of the meeting was that the Prime Minister's Office asked participants at the outset not to raise company-specific issues. Instead, discussions were centred on macroeconomic challenges facing the overall industrial sector."

He said this enabled the Prime Minister to hear firsthand the concerns of businesses across different sectors. Representatives from a wide range of industries shared their views, while the Prime Minister immediately directed the relevant ministers and officials to address several issues raised during the meeting.

The participant added that government officials outlined the steps already taken to ease the energy crisis and sought recommendations from business leaders on what additional measures could be adopted.

The government also requested suggestions on policies to accelerate the adoption of renewable energy.

Another business leader said the Prime Minister sought recommendations on priority sectors to achieve Bangladesh's target of US$100 billion in exports by 2030.

He said the government had identified 10 non-RMG sectors, each with an export target of US$3 billion, while using Vietnam as the benchmark for export-led industrial development.

"The discussion focused on Vietnam's current position and what Bangladesh needs to do to achieve similar success," he said.

Participants also agreed to speed up customs procedures, the bonded warehouse system, and cargo clearance at ports for both raw materials and finished goods. Faster processing of registrations and approvals, including those by BIDA, was also agreed upon to improve the ease of doing business.

During the meeting the Prime Minister said open dialogue was the most effective way to identify solutions and voiced confidence that continued engagement between the government and the private sector could bring meaningful improvements to the country's economy within four to five years.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury, Home Minister Salahuddin Ahmed, Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood Tuku, Commerce, Industries, Textiles and Jute Minister Khandaker Abdul Muqtadir, Road Transport, Bridges, Railways and Shipping Minister Sheikh Robiul Alam, Prime Minister's Adviser on Finance and Planning Rashed Al Mahmud Titumir, BIDA Executive Chairman Ashik Chowdhury, Bangladesh Bank Governor Mostakur Rahman and other senior government officials and representatives of leading business groups were also present.

The government has allowed the import of green chilli to increase supply and cool prices, Agriculture Minister Mohammed Aminur Rashid said yesterday.

Import activities will begin today, and prices are expected to drop to a tolerable level within two to five days, he said after visiting the Shantinagar kitchen market in the capital.

Commerce Minister Khandakar Abdul Muktadir and Dhaka South City Corporation Administrator Md Abdus Salam were also present.

Green chilli prices doubled in a week and have now crossed Tk 400 a kilogramme amid heavy rainfall-induced crop losses.

The agriculture minister said the import duty on green chilli would be cut.

Earlier in the day, the commerce minister, the agriculture minister, and State Minister for Food Md Abdul Bari held a meeting at the commerce ministry to review the overall market situation of essential commodities.

Bangladesh secured $5.24 billion in foreign loan commitments from development partners in FY26, the lowest in 14 years, according to the latest Economic Relations Division (ERD) data.

The last time commitments were lower was in FY12 at $4.76 billion. In FY15, the figure was almost similar at $5.26 billion. FY26 commitments were also significantly below FY25's $8.32 billion. Before the interim government took office, annual foreign loan agreements or commitments generally remained between $9 billion and $10 billion, ERD data show.

The ERD report released today (2 August) said $1.56 billion of FY26 commitments came as budget support. Officials of the Division said the government focused more on budget support than conventional project loans amid global uncertainty, including Middle East conflicts.

It also reallocated financing from slow-moving projects to energy and food security. Around $1.06 billion was repurposed and released in June for energy needs.

M Masrur Reaz, chairman and founder of Policy Exchange Bangladesh, said the interim government's non-political nature and highly conservative spending policy slowed public investment and almost halted new projects.

"Since there was little need to start new projects, the interim government did not extensively negotiate new foreign financing beyond IMF and World Bank budget support," he said.

He added that development partners adopted a wait-and-see approach after the election schedule was announced, assessing the elected government's priorities, financing strategy and policies before making new commitments.

Mustafa Kamal, executive director of the Institute for Inclusive Finance and Development (InM), said the new government needs time to restart negotiations as development partners assess its policies and implementation capacity.

"Many projects had preliminary discussions and commitments during the interim government. After the new government took office, those require fresh coordination, understanding and agreements," he said.

Record foreign loan repayment

Bangladesh made its highest-ever foreign loan repayment in FY26, paying $4.49 billion to development partners, up from $4.09 billion a year earlier. The repayment rose 9.96% year-on-year, with principal payments reaching a record $2.95 billion, up 13.82%, while interest payments increased to $1.54 billion from $1.49 billion.

ERD officials said repayments rose as grace periods for many earlier loans expired. Masrur Reaz said loans taken since FY20 have entered the repayment phase, increasing pressure on foreign currency earnings and creating macroeconomic challenges.

He urged the government to remain cautious about future borrowing and prioritise projects with high economic and human returns.

Foreign loan disbursement falls

Foreign loan disbursement fell to $8.07 billion in FY26 from $8.57 billion a year earlier. ERD officials attributed the decline to administrative uncertainty, lower confidence among development partners, slower project implementation due to elections and reviews of several projects after the new government took office.

The Asian Development Bank (ADB) provided the highest loan commitment in FY26 at $2.69 billion, including $1 billion in budget support. The World Bank committed $820 million, Japan $314 million, China $279.94 million and the Asian Infrastructure Investment Bank (AIIB) $250 million.

The World Bank led disbursement with $2.74 billion, followed by ADB with $1.91 billion and Russia with $1.05 billion. The AIIB disbursed $692 million, Japan $795.32 million, China $532.88 million and India $278.66 million.

Saudi Arabia, Russia and five other members of OPEC+ are expected to raise their oil production quotas for September when they meet online Sunday as the Middle East war continues to disrupt global energy supplies.

The enlarged Organisation of the Petroleum Exporting Countries will likely increase production by 188,000 barrels per day, following several months of similar hikes, said Jorge Leon, an analyst at Rystad Energy.

However, the September increase is likely to be the last in the current series of production adjustments, he said.

Between late 2022 and 2023, OPEC+ became concerned that oil prices were falling, and agreed to cut oil production in three separate rounds, reducing total output by nearly six million barrels per day.

But Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, Oman and the United Arab Emirates -- before their exit from the group on May 1 -- then changed their strategy by gradually upping production starting in 2025.

A September increase would complete the unwinding of the second of the three production-cut packages introduced by OPEC+.

However, in reality, many OPEC+ members cannot produce as much oil as their official targets allow due to a "decline in production capacity", so increasing targets has become less meaningful, said Giovanni Staunovo, an analyst at UBS.

The Gulf countries have struggled to increase exports due to the near-paralysis of the Strait of Hormuz orchestrated by Iran during the war in the Middle East -- despite a brief upswing in shipping traffic after a US-Iran memorandum of understanding was signed in June.

And in Russia, whose oil infrastructure has been repeatedly targeted by Ukrainian drone attacks, production is hovering at around nine million barrels per day -- compared with a target of 9.8 million barrels per day.

It remains unclear when the group will actually be able to increase its oil volumes, but some member countries, such as Iraq, have expressed a desire to significantly boost production.

Currently, "the group is undergoing a process in setting maximum sustainable capacity levels for all member states", according to Staunovo.

OPEC+ "faces potentially difficult talks over new production quotas" starting next year following the September increase, according to analysts at DNB Carnegie.

"I don't think cohesion is at risk at this very moment," said Leon, warning, however, that the UAE's withdrawal from the group in May has highlighted a weakness in this area.

Explaining the move, Abu Dhabi said it "serves our national interests and long-term strategic objectives".

The UAE had announced many projects and investments aimed at expanding its ability to pump oil in recent years, making it increasingly difficult to justify staying under strict OPEC+ production limits.

Bangladesh has expressed interest in importing natural gas from Myanmar through a cross-border pipeline to help meet its growing domestic energy demand.

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood conveyed the interest during a meeting with Myanmar Ambassador to Bangladesh UKyaw Soe Moe at the Secretariat in the capital today (2 August).

During the meeting, the minister said strengthening energy cooperation with neighbouring countries remains a priority under the government's "Neighbours First" foreign policy.

The Myanmar ambassador welcomed the proposal and suggested exploring LNG supplies alongside the pipeline option, a suggestion the minister welcomed.

The discussion revived a long-standing proposal to build a gas pipeline from Myanmar to Chattogram to supply energy to industrial areas in southeastern Bangladesh.

To advance the proposal, Mahmood suggested holding ministerial-level discussions and said he would invite Myanmar's energy minister to Dhaka. He also expressed his willingness to visit Myanmar if necessary.

The minister also referred to broader regional connectivity initiatives, including the proposed China-Myanmar-Bangladesh economic corridor, during discussions of energy cooperation.

He said a cross-border gas pipeline could complement regional infrastructure development and strengthen long-term trade ties between the two countries.

The Myanmar ambassador suggested holding a meeting of the Bangladesh-Myanmar Joint Technical Committee to assess the feasibility of the proposal.

State Minister Aninda Islam Amit, Energy Secretary Mohammad Saiful Islam, among others, were also present at the meeting.

The initiative comes as Bangladesh looks for additional sources of gas amid ongoing supply challenges. On 28 July, Malaysian Prime Minister Anwar Ibrahim expressed his country's willingness to explore supplying LNG to Bangladesh during a telephone conversation with Prime Minister Tarique Rahman.

While developed and developing nations are building digital economies on gigabit-speed internet, Bangladesh remains held back by sluggish connectivity. Despite expanding 4G networks, 47 percent of the population remains offline. Connection speeds and service quality lag behind rising user numbers. The country ranks 91st out of 103 countries for mobile internet speed and 93rd out of 141 for fixed broadband, according to a World Bank report.

Officials and experts warn this fragile connectivity is throttling economic growth. The shortfall weighs on investment, exports, technology-driven trade, freelancing, startups, education, healthcare and the expansion of digital public services. It also threatens the government’s plan to build a cashless society. Experts argue a comprehensive digital overhaul is now vital to navigate future economic headwinds and maintain global competitiveness.

A World Bank report titled “The Unfinished Digital Revolution: Expanding Internet Access” stresses that high-speed internet is no longer just a communications tool, but a primary driver of productivity, investment, employment and innovation. Yet in Bangladesh, where network coverage spans the entire country, individual adoption remains low. The Bangladesh Bureau of Statistics puts the personal internet usage rate at 58.6 percent — up five percentage points in a year — alongside a mobile phone ownership rate of nearly 89.5 percent.

Using Bangladesh as an example, the World Bank notes that although 4G networks covered 100 percent of the population in 2024, only 53 percent actually used the internet. One in three people stayed offline despite living within range of a signal. High handset prices, costly data packages and low digital literacy drive the disconnect, proving that infrastructure alone does not guarantee inclusion. Identifying and removing these barriers through effective policy remains critical if connectivity is to deliver real economic value.

Highlighting the scale of the divide, World Bank data shows that in 27 countries, including Bangladesh, more than half the population has never sent a text message through a mobile phone.

Sluggish internet speeds are frustrating government efforts to curb cash dependency and build a digital economy. Mobile financial services, online banking, point-of-sale terminals and QR code transactions depend on seamless connectivity. Low speeds cause dropped connections, transaction failures and duplicate charges — friction that steadily erodes confidence among merchants and consumers.

Transitioning to a cashless model without reliable, high-speed infrastructure is unworkable, said Muhit Rahman, managing director of One Bank. He told Bonik Barta: “Whatever digital activity we carry out, reliable internet is essential. If speeds are low, the whole system won’t work properly and people won’t develop confidence.”

The Bangladesh Bank governor echoed those concerns recently, Rahman noted, urging the industry to build alternative technologies capable of processing payments when internet connections fail.

Across low- and lower-middle-income nations like Bangladesh, coverage is expanding far faster than speeds, widening the gap with rapidly growing economies. World Bank data on median download speeds puts the United Arab Emirates atop the mobile rankings at 681 megabits per second (Mbps). Even Vietnam, a lower-middle-income country and Bangladesh’s regional peer, registers at 188 Mbps. Bangladesh, meanwhile, averages just 43 Mbps on mobile and 66 Mbps on fixed broadband. Singapore leads fixed broadband globally at 421 Mbps, with Vietnam, Malaysia and Thailand all outperforming Bangladesh by wide margins.

Network specialist Sumon Ahmed Sabir attributed the weak mobile performance to a seven- or eight-year investment drought in infrastructure. “We have nationwide 4G coverage, but service quality has stagnated,” Sabir told Bonik Barta. “Meanwhile, our neighbours have transitioned to 5G. We remain far behind on mobile internet, while broadband speeds fluctuate wildly across regions. So an economic challenge remains.”

The World Bank said internet adoption tracks national economic development closely. In high-income nations, 94 percent of the population is online, rendering access nearly universal. In low-income countries, that figure drops to 23 percent — leaving fewer than one in four connected.

A persistent rural-urban divide explains why lower-middle-income countries lag in both usage and speed. Infrastructure deficits and lower incomes lead to rural connectivity trailing urban centres across all economies. In rural Bangladesh, erratic connections and slow speeds cut residents off from market prices, agricultural support, digital payments, telehealth and public services.

Zahirul Islam, managing director of Smart Technologies, told Bonik Barta: “High-speed, reliable internet is no longer a luxury — it is foundational infrastructure. Internal operations, ERP systems, cloud-based applications, customer support and digital services all depend on web platforms. The world’s leading software solutions rely on stable internet connectivity. When speeds drop or connections fail, delivery slows and productivity falls.”

Building a tech-driven economy requires Bangladesh to upgrade network speed, stability and international bandwidth quality alongside basic coverage, Islam added.

Across low-income nations, weak connectivity and slow speeds drag on economic growth, foreign investment and international trade. Sluggish mobile networks do more than frustrate users; they choke productivity, job creation and capital flows across every sector, the World Bank noted.

Bangladesh must fundamentally restructure its digital landscape, said Dr M Masrur Reaz, chairman of Policy Exchange Bangladesh. “The global economy is pivoting toward a digital framework powered by high-speed internet, allowing regional competitors to pull ahead,” Reaz told Bonik Barta. “Approximately 12 percent of Bangladesh’s exports depend on digital services. Sluggish internet speed directly handicaps them. Banking and financial services rely just as heavily on stable networks. Advanced economies prioritised this sector; Bangladesh must also engineer its own digital revolution now.”

Lutfunnisa Saudia Khan, president of the International Business Forum of Bangladesh, believes fast and reliable internet has become foundational infrastructure for modern enterprise.

“Nearly every activity worldwide now depends on the internet — global trade relies on it just as heavily as domestic commerce,” Khan told Bonik Barta. “Faster speeds and stronger connectivity would break existing monopolies, lower costs, spur competition and push service providers to raise quality. It would also give businesses a wider range of options. Submarine cables can play a critical role here.”

As the government launches fresh initiatives to attract foreign direct investment, digital infrastructure is taking centre stage. Internet connectivity plays a vital role in drawing both domestic and foreign capital, said Nahian Rahman Rochi, an executive member and head of Business Development at the Bangladesh Investment Development Authority.

Rochi told Bonik Barta. “Work is advancing on a third submarine cable, 5G deployment and Starlink’s satellite internet service. Major international telecoms operators are also showing keen interest in expanding their operations into Bangladesh.”

According to the data published by the central bank, the amount of cash outside the banks was Tk 3,49,374 crore at the end of May this year. The amount of such cash increased further in June and July. The balance of cash outside the banks has now exceeded Tk 3,80,000 crore, Bangladesh Bank sources said.

The prevalence of cash is increasing at a time when the payment system in the country's banking sector is much more modern and technology-based. Customers can transact any amount of money in the bank from home if they want. They can use the bank's apps or mobile financial services (MFS) to make purchases, pay utility bills, and receive almost all types of banking services whenever they want.

While searching for an answer to the question of why cash is growing so rapidly despite the expansion of digital payment infrastructure and networks, the country's large informal sector, cash-based businesses, high inflation, limited financial inclusion, and a crisis of trust in the banking sector come to the fore. In many cases, digital transactions have not been an alternative to cash; rather, they are being used in parallel with cash. As a result, the inability to reduce cash dependence despite the spread of modern payment technologies highlights the structural weaknesses of Bangladesh's financial system.

Economists, bankers and all concerned parties say that if a large portion of cash is outside the banks, it is not added to the effective flow of the financial system. This reduces the ability of banks to collect deposits. The supply of money for loans and investments is reduced. The flow of money to the productive sector is also hampered. At the same time, huge amounts of cash increase the risk of the expansion of the informal economy, tax evasion, undisclosed income and illegal transactions. The transparency and accountability of the economy are also weakened.

Dr. Fahmida Khatun, executive director of the private research organization Center for Policy Dialogue (CPD), believes that it is necessary to investigate why the flow of cash has increased so much. She told Banik Barta, "As a result of the modernization of the payment system, the size of the informal economy is supposed to shrink. But we are not seeing that. Rather, the amount of cash going out of banks is increasing. Deposits in banks are also growing. On the one hand, the increase in the flow of cash out of banks, and on the other hand, the growth in deposits are contradictory. These two trends in the economy are contradictory. Why this is happening, the Ministry of Finance and Bangladesh Bank need to investigate."

Dr. Fahmida Khatun herself is now on the board of directors of Bangladesh Bank. She said, 'The growth of the informal economy means that money is coming from some source. Whether that money is from a legitimate source, whether taxes have been paid against that money, these are the questions that need to be answered. Generally, when distrust of banks, bribery and corruption, and black money violence increase in an economy, the demand for cash increases.'

According to Bangladesh Bank data, a decade and a half ago, in 2011, the amount of cash outside banks in the country was only Tk 58,417 crore. In the following years, the demand for cash continued to increase rapidly. Increasing continuously, the amount of cash outside banks stood at Tk 2,9517 crore in June 2021. A year later, in June 2022, this amount increased to Tk 2,364,488 crore. And in June 2023, the amount of cash in the market stood at Tk 2,919,133 crore. However, although the amount of cash outside banks fluctuated in 2024 and 2025, it did not increase much. In June last year, the amount of cash in the market was Tk 2,964,511 crore. But in just one year, in May this year, this amount increased to Tk 3,493,744 crore. Then, in June, the resignation of the chairman of Islami Bank and the appointment of a new chairman by the central bank spread unrest in the bank. As a result, deposits worth about Tk 25,000 crore were withdrawn from the country's largest bank. As the crisis intensified, the central bank had to lend Tk 13,000 crore.

Officials of the Currency Management Department of Bangladesh Bank said that when the instability arose in Islami Bank, a part of the customers withdrew their deposits from many other banks in the country. Due to this, the amount of cash outside the banks exceeded 3.7 trillion taka in June. Then in July, this figure reached 3.8 trillion taka. However, at the moment, the demand for cash is somewhat stable. The situation may normalize if a new board of directors is formed in Islami Bank.

When asked about this, Mohammad Zahir Hossain, administrator of Islami Bank Bangladesh PLC and executive director of Bangladesh Bank, told Banik Barta, "The daily transaction situation of Islami Bank is now normal. We will repay the money that was lent from the central bank in installments. Many of the customers who had withdrawn money from the bank in panic have returned."

According to Bangladesh Bank data, the growth in deposits in the banking sector this year is better than in the past few years. In the first 11 months of the 2025-26 fiscal year (July-May), deposits in the country's banks increased by Tk 1,63,522 crore. Although earlier, deposits increased by Tk 89,774 crore in the same period of the 2024-25 fiscal year. Accordingly, the growth in deposits in the banking sector is almost double compared to the previous year. At the end of May this year, the balance of deposits deposited by customers in banks was Tk 2,041,692 crore. In this case, the growth in deposits was 11.41 percent.

City Bank Managing Director and CEO Masrur Arefin is blaming high inflation for the large amount of cash flowing out of banks. The top executive, who is also the chairman of the Association of Bankers, Bangladesh (ABB), an organization of bank executives, told Business Daily, "The main reason for the large amount of cash flowing into the market is inflation. As the prices of goods and services increase, it now costs more to buy the same amount of money. This money is changing hands in the retail market and circulating as cash. If inflation drops to 5 percent, the amount of cash outside banks will be reduced by half."

However, Masrur Arefin believes that the infrastructure for digital transactions is still inadequate compared to the demand. He said, 'The spread of QR codes, POS machines, cards and internet banking is very limited compared to millions of shops in the country. The crisis of confidence in the banking sector has also increased cash dependence. The presence of good banks is low in many areas. As a result, people are withdrawing money from weak banks and keeping it at home. So much noise in the media about irregularities or looting in the banking sector has pushed even our mid-level banking brands into a challenge. In this situation, our good banks will either have to expand like "Bikash", or we will need a few more "Bikash" for this huge economy.'

In the last few years, there has been a huge expansion of technology-based payment systems in the country's banking sector. Every month, transactions worth 2.5 lakh crore taka are being made in Mobile Financial Services (MFS) alone. Most banks have launched debit, credit and prepaid cards. And the monthly transaction volume of the banks' mobile apps and internet banking has also reached about 2.5 lakh crore taka. In the last few months, the central bank has taken various steps to popularize 'Bangla QR'. Despite this, the central bank is also concerned about the increasing amount of cash leaving the banks.

In this context, Bangladesh Bank's Executive Director and Spokesperson Arif Hossain Khan told Banik Barta, "We have brought all the merchants in the country under the Bangla QR. All digital payment mediums including RTGS, NPSB, MFS are now more popular and faster than ever before. Despite that, the increase in the amount of cash outside the banks is a concern. In the current situation, whether people are turning away from banks has become a big question. However, we are trying our best to restore good governance, discipline and trust in the banking sector."

However, Arif Hossain Khan also blames high inflation for the increase in the amount of cash outside banks. He said, "The country has been experiencing high inflation since 2022. People are having to spend more money to pay for goods and services. In the last three years, weak banks have been given a huge amount of liquidity support from the central bank. Most of the money provided has been withdrawn by depositors. These are also responsible for the increase in cash outside banks."

The US dollar continues to gain against the taka amid increased demand for foreign currency to clear import bills.

On July 13, the weighted average rate of the greenback hit Tk 123 per dollar in interbank trading. The rate, after remaining steady for three days, began to increase gradually.
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On July 30, the taka-dollar exchange rate rose to Tk 123.82 per dollar in the interbank market. On the spot market, the dollar was traded at Tk 123.88 each on the same day, according to Bangladesh Bank (BB) data.

“We are seeing increased pressure for import payments, particularly for the import of fuel and fertiliser by government agencies. Overall, imports have increased too,” said a top executive of a private bank.

During the July-May period of FY26, Bangladesh’s imports grew 6.26 percent year-on-year to $64 billion. By contrast, exports declined 2 percent year-on-year to $40 billion, according to BB.

Bankers said that although the country received a record $35.5 billion in remittances sent by migrant workers and Bangladeshis living abroad, the inflow has slowed recently as the two major festivals -- Eid-ul-Fitr and Eid-ul-Azha -- have already been celebrated.

“It appears exports are likely to remain dull. The fresh escalation of the war in the Middle East and the consequent spike in oil prices have also raised concerns,” said another banker. “It appears that the taka will remain under pressure for some time.”

However, there is a flip side. A weaker taka will enhance the competitiveness of exports, bankers said.

As demand for foreign currency increases, BB has stopped buying US dollars from the market since June 8. The central bank bought $6.4 billion from the market between July 2025 and June 2026 as part of its effort to build foreign exchange reserves.

Cutoff time is now until August 15 for the centrally capital-deficient Janata Bank to fulfill its UAE outfit's jacked-up minimum-capital requirement or pull back, according to the gulf country's regulatory direction.

As such, the state-owned Janata Bank PLC (JBPLC) has run into severe crisis in the United Arab Emirates (UAE) due to its failure to meet the minimum capital requirement, as the Central Bank of the UAE (CBUAE) has issued a final directive for the bank to wind down its operations in the country.

According to the directive, Janata Bank has to appoint an Administrator or Liquidator by August 15, 2026 to initiate the liquidation process.

The CBUAE has warned that failing to comply within the deadline will result in a permanent freeze on Janata Bank's accounts maintained with the CBUAE-a move that could severely impact the bank's international operations.

Currently, there are four overseas branches operating in the UAE, including in Abu Dhabi, Al Ain, Dubai and Sharjah.

The urgency of the situation was highlighted in a letter sent by Managing Director (MD) of Janata Bank PLC Md. Mazibur Rahman to the Secretary of the Financial Institutions Division.

An official document shows that on July 15, the CBUAE issued a letter instructing Janata Bank to appoint an administrator within 30 days (by August 15, 2026) and wind down its business.

Subsequently, the Chief Executive of Janata Bank's UAE operations informed the headquarters through a letter dated July 29, 2026 that the CBUAE reviewed Janata Bank PLC's overall 2025 financials at entity level and decided to uphold its July-15th order.

Under CBUAE Circular No. 12/2021, the bank was required to meet some following financial criteria to keep its UAE operations active.

In accordance with the Circular No-12/2021 of the CBUAE, paid-up capital of Janata Bank has to increase from 100 million to 400 million dirham equivalent to approximately Tk 1.34 billion at the branch level in the UAE, reads the Janata Bank letter.

In addition, at the head office level, some 2.0 billion dirham, equivalent to approximately Tk 67.06 billion, along with adjusting this bank's own negative capital of Tk 164 billion, comes to a total capital arrangement plan for Tk 232.41 billion, the letter mentions.

Describing the situation as "extremely alarming," Janata Bank's Board of Directors has requested urgent intervention from the government and Bangladesh Bank (BB) to either secure permission to keep operations afloat or transition into alternative models, such as a non-banking financial institution or an exchange house.

Although the governor of BB previously emailed the CBUAE Governor requesting an opportunity to maintain operations, the CBUAE has been unmoved.

As the deadline rapidly approaches, the state-owned bank authorities have requested an emergency meeting with all relevant stakeholders, including the Ministry of Finance and the central bank, to determine the next steps.

Agenda items include exploring alternative models-such as converting the UAE operations into a non-banking financial institution or an exchange house-to avoid a complete shutdown and safeguard customer deposits.Arabs & Middle Easterners

Beyond the crisis in its UAE branches, the overall domestic financial health of the bank proper is said to be under severe strain, characterized by record losses, a massive bad-loan volume, and a staggering capital deficit.

As of December 2025, Janata's financial health had deteriorated sharply as its stock of non-performing loans (NPLs) surged to Tk 725.39 billion, exposing the state-owned lender to an unprecedented balance-sheet crunch.

The mounting volume of unrecovered loans pushed the bank's actual capital shortfall to a record Tk 644.06 billion, while its provisioning deficit-the mandatory reserves required against classified loans--widened to Tk 559.32 billion, according to official financial data.

The bank also posted a staggering net loss of Tk 39.31 billion for 2025.

Its core banking operations remained under severe stress, with net interest income staying deeply in the red as interest operations alone incurred a loss of Tk 59.03 billion.Public Finance

When contacted, the MD of Janata Bank said the Bangladesh Bank governor had officially written to the Central Bank of the UAE regarding the ongoing capital- requirement issues of its UAE branches.

"A joint meeting involving the Foreign Affairs Ministry, the Financial Institutions Division (FID), the Finance Division, and the Bangladesh Bank will be held very soon to discuss the matter," Md. Mazibur Rahman told The Financial Express.

The Janata Bank chief has noted that the capital deficit is not a recent development, but has persisted since 2016.

He highlighted that the minimum capital requirement was previously 40 million dirham, but the UAE authorities now asked for raising it tenfold to 400 million dirham in a single leap.

"Our four branches operating in the UAE are profitable. Historically, we have been managing and absorbing the capital deficit using the operating profits generated by these branches," he added.

Bangladesh Bank (BB) has extended the deadline for Mobile Financial Service (MFS) providers and scheduled banks to comply with specific regulatory requirements for the ‘Add Money’ facility from bank cards to personal MFS accounts until December 31, 2026.
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The central bank issued the directive on Thursday through PSD-1 Circular Letter No. 03/2026, revising the implementation timeline for instructions under Serial Nos. 02 and 03 of its earlier circular issued on May 19, 2026.

According to the circular, MFS providers and scheduled banks failing to comply with the stipulated requirements by the revised deadline will have their card-to-MFS ‘Add Money’ service suspended from January 1, 2027.

The directive was issued under Section 18 of the Payment and Settlement Systems Act, 2024.

Bangladesh Bank clarified that the extension applies only to the implementation timeline for the two specified instructions.

All other provisions of the original circular issued on May 19 will remain unchanged and must continue to be followed.

Marico Bangladesh Limited, the producer of the popular Parachute brand, reported a 12.38% year-on-year decline in net profit for the April-June quarter of 2026, marking the first time the company has faced a quarterly earnings slump in four years.

According to its latest financial statements, the company's net profit for the quarter stood at Tk170.47 crore, down from Tk194.56 crore in the corresponding period of 2025.

This downturn comes despite a 4% growth in revenue, which reached Tk531.86 crore during the same period. The last time the multinational witnessed a contraction in its first-quarter profit was in 2022.

The company reported that its earnings per share (EPS) settled at Tk54.12 for the quarter, compared to Tk61.77 a year earlier.

Management attributed the profit squeeze primarily to a sharp rise in raw material prices and a decrease in finance income. Additionally, the net operating cash flow per share (NOCFPS) plummeted to Tk20.28 from Tk66.73, which the company explained was due to significantly higher payments made to suppliers during the three-month period.

Meanwhile, the company's net asset value (NAV) per share rose to Tk146.14 as of 30 June 2026, up from Tk92.02 in March, bolstered by a strong retained earnings position.

Despite the earnings dip, the board of directors declared a substantial 500% interim cash dividend, equivalent to Tk50 per share. The record date for the dividend entitlement has been set for 27 August.

Market analysts noted that while rising input costs remain a challenge for the manufacturing giant, the hefty dividend payout reflects the company's robust cash reserves and continued commitment to shareholder returns.

A widening imbalance between Bangladesh's container imports and exports is leaving inland container depots (ICDs) overflowing with empty containers, straining storage capacity for export cargo and prompting the Chattogram Port Authority (CPA) to renew its push for regulatory changes.

The CPA has asked the National Board of Revenue to allow shipping agents and main line operators (MLOs) to store empty containers at suitable non-bonded locations without requiring bonded warehouse licences, arguing that the current rules are worsening congestion at both the port and private depots.

In a letter sent on 26 July, the port authority revived a prior proposal submitted in October 2025 that has yet to receive approval.

Import-export gap reaches record high

CPA data show the gap between import and export containers has nearly doubled over the past five years, rising from 177,832 twenty-foot equivalent units (TEUs) in FY22 to a record 329,996 TEUs in FY26.

In FY22, the country handled 1.72 million TEUs of imports and 1.54 million TEUs of exports, leaving a gap of 177,832 TEUs.

The gap widened to 237,609 TEUs in FY23, despite imports falling slightly to 1.62 million TEUs and exports declining to 1.38 million TEUs.

In FY24, imports rebounded to 1.72 million TEUs, while exports reached 1.45 million TEUs, pushing the imbalance further to 278,500 TEUs.

Although the gap narrowed marginally to 276,357 TEUs in FY25, imports continued to outpace exports, with 1.79 million TEUs of imports compared with 1.51 million TEUs of exports.

Imports climbed to 1.93 million TEUs while exports rose to 1.60 million TEUs in FY26.

According to industry operators, the country's 24 private ICDs, which have a combined storage capacity of around 106,000 TEUs, are currently holding 56,565 TEUs of empty containers.

Ruhul Amin Sikder, secretary general of the Bangladesh Inland Container Depot Association, said the actual trade imbalance is even wider than official statistics indicate because the data include both loaded and empty containers.

"The country's real export volume is nearly half of its imports," he told The Business Standard.

"When vessels arrive and depart, both loaded and empty containers are counted in the port statistics. As a result, the published figures do not reflect the actual volume of export cargo," Ruhul Amin said.

According to detailed port data for calendar year 2023, the port handled 1,337,613 TEUs of imports, including 94,915 empty containers. During the same period, exports totalled 1,315,337 TEUs, of which 584,891 TEUs were empty containers shipped overseas.

Excluding empty boxes, loaded imports stood at 1,242,698 TEUs, while loaded exports amounted to just 730,446 TEUs, leaving an actual containerised trade gap of 512,252 TEUs.

He said the mounting stock of idle containers is reducing space available for export cargo.

"If shipping lines are allowed to store empty containers in non-bonded facilities, both ICD operators and shipping lines will get much-needed relief," he said.

Port calls for regulatory changes

In its letter to the NBR, the CPA said all imported less-than-container-load (LCL) cargo is destuffed inside the port, while nearly 70% of full container load (FCL) imports are opened for cargo delivery. As importers collect their goods, thousands of containers become empty every day.

However, empty containers are evacuated much more slowly than they are generated, leading to a steady build-up at both the port and private depots.

The authority noted that although shipping agents and MLOs are responsible for these containers, current NBR regulations prevent them from storing empty containers outside bonded facilities.

The CPA also pointed out that many countries, including Bangladesh's neighbours, allow shipping lines to manage empty container storage at suitable locations without requiring bonded warehouse licences.

Allowing similar arrangements in Bangladesh, it said, would improve yard utilisation, reduce congestion and streamline container handling.

Low commercial incentive to move empty boxes

Khairul Alam Suzan, former vice-president of the Bangladesh Freight Forwarders Association and former director of the Bangladesh Shipping Agents Association, said depot operators earn significantly more from handling loaded import and export containers than from storing empty ones.

Shipping lines also incur losses when transporting empty equipment.

"A loaded container may generate freight of around $300, while an empty container earns only about $100 despite occupying the same vessel space and requiring the same handling," he said.

"As a result, shipping lines often delay repositioning empty containers, prolonging their stay in Bangladesh and worsening congestion across the logistics chain," he said.

Long-term solutions needed

Industry experts say the growing stockpile of empty containers reflects Bangladesh's structural trade imbalance rather than simply a shortage of storage space.

Alongside allowing non-bonded storage, they recommend improving data on empty container movements, strengthening coordination among the CPA, Customs, NBR, shipping lines and depot operators, and boosting exports to narrow the persistent trade gap.

Without such measures, they warn, pressure on the port and the country's logistics network is likely to intensify as container traffic continues to grow.

Bangladesh Bank has reduced the policy rate by 50 basis points to 9.50 per cent just a month after announcing a cautious and contractionary monetary policy aimed at inflation combat.
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Amid cries from business circles, the central bank makes the downward adjustment in its benchmark rate in 22 months notwithstanding inflation remaining elevated.

The new rate will come into effect from August 2, according to a press release issued by the central bank following a meeting of the Monetary Policy Committee (MPC) held Thursday.

The central bank said the committee extensively reviewed domestic and global inflation trends alongside investment, private-sector credit growth, employment, economic growth and the country's external balance before reaching the decision.

"The MPC, after reviewing the latest developments in domestic and global economic indicators, decided to reduce the policy (repo) rate by 50 basis points from 10.00 per cent to 9.50 per cent," the statement reads.

The MPC also lowered the Standing Lending Facility (SLF) rate by 50 basis points to 11.00 per cent from 11.50 per cent, while leaving the Standing Deposit Facility (SDF) rate unchanged at 7.50 per cent, maintaining the lower bound of the interest- rate corridor.

The first MPC meeting of the current fiscal year was chaired by Bangladesh Bank Governor Mostakur Rahman. Deputy Governor Habibur Rahman, economist Mustafa K Mujeri, BIDS Director-General A K Enamul Haque, Dhaka University Economics Department Chair Ferdousi Nahar, Chief Economist Mohammad Akhtar Hossain, and Executive Director Imam Abu Sayeed attended the meeting.

The Dhaka Stock Exchange (DSE) rebounded last week as the benchmark DSEX climbed 1.57%, driven by renewed investor optimism over the ongoing quarterly earnings season despite lingering concerns over gas supply disruptions and regulatory uncertainty.

The DSEX, the key index of the Dhaka bourse, gained 91 points to close at 5,895, recovering from the sharp correction recorded in the previous week. The blue-chip DS30 index also advanced 24 points to end the week at 2,217.

According to EBL Securities' weekly market review, the rebound was supported by a temporary pause in retaliatory actions in the Middle East conflict, which revived investors' risk appetite.

Market participants also accumulated shares of companies expected to post strong quarterly financial results, resulting in broad-based buying across the market.

The benchmark index briefly crossed the 5,900-point mark during the week for the first time in nearly a fortnight before intraday profit-taking trimmed some of the gains.

However, concerns over ongoing gas supply disruptions and uncertainty over new margin lending rules kept investors cautious.

Despite these headwinds, market breadth remained strong, with gainers significantly outnumbering losers. Of the traded issues, 264 advanced while only 89 declined.

Trading activity edged lower during the week, with average daily turnover slipping slightly to Tk1,060 crore.

Among sectors, textiles dominated turnover, accounting for 22.5% of total weekly trading, followed by pharmaceuticals with 12% and engineering with 10.8%.

The general insurance sector emerged as the week's best performer, posting an 8% gain. Food and textile sectors followed with returns of 6.2% and 3.9%, respectively. Meanwhile, cement, paper and telecommunication stocks posted marginal losses as investors rotated their portfolios.

Among individual stocks, Exim Bank First Mutual Fund topped the gainers' chart with a 36.7% surge, followed by FAS Finance and Saiham Textile.

On the losing side, Renwick Jajneswar fell 12.8%, while Meghna Pet also recorded a notable decline during the week.

Apple shares fell nearly 10 percent on Friday after a disappointing forecast showed that the iPhone maker was struggling to secure enough components as the AI-driven data center boom strains global supply ​chains.

The drop, if sustained, would mark the stock’s worst day since the pandemic-driven selloff in March ‌2020. It would erase nearly $500 billion from Apple’s market capitalisation and return the crown of the world’s most valuable company to AI chip giant Nvidia, days after reclaiming it.

Tim Cook, widely hailed as a supply-chain genius, called the shortages “very significant” and said Apple had limited options ​to address them, speaking on his final earnings call as CEO before handing the reins to John ​Ternus in September and becoming executive chairman. “If even at Apple’s scale they are saying they are out all supply chain flexibility, it’s really bad for everyone,” said Ben Bajarin, CEO of tech consultant Creative Strategies.

Big ​Tech has been scooping up advanced chip-making capacity and memory chips to power its AI data centers, sparking shortages and ​price increases that are expected to shrink both the personal computer and smartphone markets this year.

Apple had cushioned some of the blow from surging memory costs by drawing on stockpiled inventory, but Cook said that the buffer was fading and shortages of processors were keeping ​it from meeting strong demand for iPhones and Macs.

Its forecast on Thursday for revenue growth of between 9 percent and 11 percent ​in the current quarter fell short of Wall Street’s roughly 12 percent estimate, and softer growth in its services business also overshadowed otherwise ‌strong June-quarter results.

SERVICES WEAKNESS WORRIES INVESTORS

The services weakness worried investors as it came during a stretch of strong iPhone sales, which typically feed the business that takes a cut of App Store purchases and includes everything from Apple Music to Apple TV.

That slowdown could deepen if iPhone sales take a hit from a price increase that many analysts expect during the ​launch of the new lineup, ​which typically happens in September.

“Apple’s leverage over the supply chain appears to be in question and it’s not clear that AI is serving as any measurable tailwind to products or services, with its future monetisation ​impact still uncertain,” Morgan Stanley analysts said.

“In fact, one could argue App Store softness ​might even be a result of AI re-prioritising customer time.”

Still, some analysts said that the iPhone has weathered price hikes before without denting demand significantly and that a recent US leasing deal with Klarna that offers monthly plans for Apple’s devices could soften the blow.

At least four brokerages cut their targets for the company’s stock price, while three ​raised. That moved the median view to $330, which is $3 lower than the last closing price, according to LSEG data. The stock has risen 22.7 percent this ​year as of Thursday’s close.

Bangladesh Bank (BB) has made it mandatory for applicants to withdraw all pending lawsuits filed against the government, the central bank, or the respective bank to qualify for any government-announced incentive packages or special policy support.
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In a circular issued to the chief executives of all scheduled banks, the central bank stated that the new directive comes into force with immediate effect.

Under the new instructions, applicants will not only have to withdraw all existing cases but must also submit a complete list of the withdrawn lawsuits alongside their applications.

Furthermore, applicants must furnish a formal declaration through an affidavit executed on a non-judicial stamp, confirming that no lawsuits filed by them against the government, Bangladesh Bank, or the bank concerned remain pending or under trial.

The BB noted that it has long been providing various policy supports and incentive packages aimed at generating employment, boosting credit flow to productive sectors, and building a private investment-led economy.

These measures include assistance for reopening closed export-oriented factories, providing credit facilities to entrepreneurs in the agricultural, cottage, micro, small, and medium enterprise (CMSME) sectors, and supporting other productive industries.

However, central bank observations revealed that certain clients were enjoying government incentives and policy benefits while simultaneously pursuing writ petitions and other legal suits against the government, Bangladesh Bank, or the lending banks. Central bank authorities noted that this dual position has created unnecessary legal complications within the banking sector and posed significant hurdles to implementing policy support smoothly.

Central bank officials expect the new directive to reduce unnecessary case backlogs and minimize legal uncertainties surrounding the implementation of government incentive packages. They added that the process will become more transparent and accountable for genuine entrepreneurs seeking to revive their businesses, expand production, and create jobs.

Bankers pointed out that, in the past, several institutions continued legal battles in court while simultaneously availing themselves of incentive schemes. This resulted in delays in policy execution and forced banks into prolonged litigation. The new policy is designed to discourage such dual stances.

Meanwhile, a section of legal experts emphasized that, while executing the directive, it will be crucial to maintain a balance between an applicant's right to seek constitutional remedies and the conditions attached to government policy support. They advised banks to strictly adhere to the provisions of the circular during implementation.

The BB expressed hope that the policy will ensure incentives reach actual entrepreneurs more effectively, lower legal friction, and invigorate national economic activities through increased investment, production, and employment generation.

US petroleum giants ExxonMobil and Chevron released blowout profits Friday due to the Middle East war, as executives cautioned that elevated gasoline prices will probably continue to strain consumers.

The US oil giants scored huge profit increases, illustrating that the financial benefits from supply disruptions from the US-Iran war easily offset negative effects at both companies.

ExxonMobil’s second-quarter profits more than doubled to $14.5 billion, while Chevron’s came in at $12.1 billion, more than five times the level in the year-ago quarter.

But gasoline prices sit above the psychologically important $4 per gallon level, posing political risk to US President Donald Trump ahead of the US midterm elections.

While crude prices are relatively high, executives with the two oil giants emphasized the effects of diminished refinery capacity in the wake of Iran’s virtual shutdown of the Strait of Hormuz that has led some plants to shut or reduce runs.

“I wouldn’t hold my breath here in the short term,” ExxonMobil Chief Executive Darren Woods told CNBC in response to a question about when gasoline prices will fall.

“I think we’re going to see prices consistent with what we’re experiencing for quite a while yet,” said Woods, describing a “disconnect” between crude and gasoline markets distinct from long-term trends.

“We’ve got to get the Strait opened up and then we’ve got to resupply the inventories and get things moving,” Woods said.

Chevron Chief Executive Mike Wirth described the meager state of motor gasoline inventories as part of broader dearth of refined products supplies that also affects jet fuel and diesel, among other goods.

“We’re going to see upward pressure on product pricing here into the third quarter and perhaps beyond that,” Wirth told analysts on a conference call.

With revenues of $116 billion, up 42 percent, ExxonMobil pointed to higher oil prices as a factor in its earnings, while emphasizing huge increases in refining margins.

Refining margins, the profit from gasoline and other products minus crude oil costs, “reached record levels in the quarter,” ExxonMobil said in prepared remarks that cited a nearly nine percent drop in global capacity because of war-related dislocations.

Besides lost volumes due to the Strait of Hormuz, Woods cited a drop in China fuel exports and lost Russian refining capacity following attacks by Ukraine.

While the effects from the war mostly benefited ExxonMobil, damage to key liquefied natural gas assets in Qatar dented output, Woods said on a conference call with analysts.

Woods predicted shippers will “take some time” once the Strait of Hormuz reopens to believe transit is safe, adding further to market tightness.

The strong results from US oil giants come on the heels of massive profit increases at Shell and TotalEnergies that have prompted calls in some European countries to impose windfall profits taxes.

On Thursday, the Portuguese government approved a draft law imposing a windfall profits tax on the sector, saying the funds will benefit “families and sectors most impacted by fuel price increases,” as well as supporting investments to decarbonize the economy.

Woods, a frequent critic of European environmental policies, called windfall profits taxes “short-sighted,” saying such measures would “inflict more higher costs and lower standards of living on their population.”

Chevron’s results also benefited from increased refinery margins as well as higher crude prices, which came in at an average of $96.41 a barrel on international assets, up 64 percent from the year-ago period.

Another boost compared with the year-ago period came from increased upstream production after Chevron completed the acquisition of Hess in July 2025.

But Chevron also experienced some negative impacts from the war, pointing to reduced petroleum output from the “Partitioned Zone” between Saudi Arabia and Kuwait.

Results were also dented by reduced international refining runs because of a 10 percent drop in crude oil inputs.

ExxonMobil shares fell 1.9 percent near midday while Chevron climbed 1.4 percent.

Shipping companies have sharply reduced bookings for export containers from Bangladesh, creating fresh uncertainty for exporters and freight forwarders.

Representatives of importers, buying houses, shipping agents, and exporters said even when bookings are accepted, lead times have increased by up to three weeks in some cases, while freight rates have more than doubled. Freight to the USA has jumped from $4,500 per container a month ago to more than $11,000.

They alleged that shipping companies – also known as mainline operators (MLOs) – are deliberately creating an artificial shortage of container space to drive up freight rates.

Industry insiders warn that if the situation continues, exporters may have to switch to air freight, driving up logistics costs further. Over time, the added burden could fall on exporters and erode Bangladesh's competitiveness by prompting buyers to shift orders elsewhere.

MLO representatives, however, say the disruption is caused by shipping disruptions linked to tensions in the Middle East. Exceptionally strong demand from China is also leaving fewer booking slots for other countries, including Bangladesh, they add.

The major MLOs serving Bangladesh include Maersk, MSC (Mediterranean Shipping Company), CMA CGM, Hapag-Lloyd, COSCO, Evergreen Line, and OOCL.

DDP exporter suffering directly

The crisis is hitting exporters shipping under Delivered Duty Paid (DDP) terms directly as they bear freight costs until goods reach buyers' warehouses. Those exporting under Free on Board (FOB) terms are less directly affected because overseas buyers pay the ocean freight.

Shovon Islam, managing director of Sparrow Group, a leading garment exporter that ships under DDP, said most Bangladeshi exporters shipping under such terms are facing challenges.

"We are struggling to secure bookings for US-bound containers and are having to pay significantly higher freight rates," he told The Business Standard.

"Delayed shipments damages reputation and increases the risk of losing future orders. Besides, higher freight costs are pushing up our production costs," he said.

Neither the Bangladesh Garment Manufacturers and Exporters Association nor the Bangladesh Knitwear Manufacturers and Exporters Association has data on how many Bangladeshi exporters use the DDP model.

Freight cost doubles in a month

The Dhaka liaison office of US-based buying house Liang Fashion has spent nearly two weeks trying to secure bookings for 10 garment-laden containers bound for the US, despite approaching several MLOs, including Hapag-Lloyd and MSC.

Last week, the MSC informed the company by email: "Sorry we are unable to accept your booking currently. Our vessels have been fully booked for the next few weeks."

A senior Liang Fashion official, speaking on condition of anonymity, said the company eventually had to accept sharply higher freight rates for its 10 containers to secure space.

"Freight to New York has jumped from $4,500-$5,000 per container a month ago to as much as $11,400," he said. "Our containers will reach buyers two to three weeks late. That could hurt future orders, while our logistics costs are also rising."

He said most container shipments from Bangladesh to the US and Europe are facing booking delays and exorbitant freight rates.

Kabir Ahmed, managing director of Conveyor Logistics, said freight to Hamburg, Germany, has risen from about $2,500 a month ago to nearly $6,000 per container.

Kazi Iftequer Hossain, former president of the Bangladesh Garment Buying House Association, warned that the disruption could further weaken Bangladesh's exports.

"Bangladesh's exports are already under pressure. This latest crisis will further lengthen container transit times, hurting the country's export competitiveness," he said.

No industry body, however, could provide data on the number of exporters or containers affected, or the additional costs incurred.

Finger pointed at MLOs

Conveyor Logistics MD Kabir Ahmed alleged that MLOs have created an artificial shortage. "We believe they are acting in concert to reduce booking and drive up freight rates."

A senior executive at a Bangladesh-based shipping agency, speaking on condition of anonymity, echoed the claim. "Whenever the MLOs want to raise freight rates, they create this kind of artificial shortage," he told TBS.

Other Industry insiders said container bookings from China have surged in recent weeks, prompting shipping lines to allocate more capacity there.

They explained that Bangladesh does not typically receive direct calls from mother vessels, and export containers are first shipped by feeder vessels to transshipment hubs such as Colombo, Port Klang, and Singapore, where they are transferred to larger vessels bound for Europe and North America.

With more capacity being allocated to Chinese cargo, less space is available for containers from Bangladesh and other countries at these hubs. As a result, MLOs have reduced booking allocations from Chattogram.

Industry sources alleged that shipping lines are prioritising Chinese cargo because it generates higher returns, leaving fewer slots for Bangladesh and other countries.

MLOs deny allegations

A senior MSC official in Dhaka, speaking on condition of anonymity, acknowledged that booking allocations for Bangladesh had reduced, but said the cut was modest. "If we previously accepted bookings for around 2,000 containers, we are now taking about 1,500."

He said the disruption is caused by the conflict in the Middle East and continued disruptions in the Red Sea. "This is not a Bangladesh-specific problem; it is affecting global shipping."

The official also admitted that shipping lines are allocating more capacity to China because it is commercially more attractive. "Cargo from Bangladesh must first be transported by feeder vessels to transshipment ports, where additional loading, storage and handling costs are incurred. Those costs do not apply to cargo shipped directly from China," he said.

A senior official at Hapag-Lloyd's Bangladesh office also confirmed that freight rates from Bangladesh had surged because of the shortage of shipping space.

Crisis could worsen, adding pressure on exporters

Stakeholders warn the container space shortage could worsen in the coming months. While DDP exporters are bearing the immediate impact, they said even FOB exporters could eventually face pressure as higher logistics costs ripple through the supply chain.

A senior Hapag-Lloyd official in Bangladesh said the shortage is likely to intensify.

"If the situation worsens, we will have to revise our freight quotations. Eventually, part of the additional cost could be passed on to factories," he said.

Kabir Ahmed said exporters could increasingly be forced to use air freight, further raising costs.

A senior executive at a Dhaka-based buying house said sustained increases in freight costs would ultimately be passed on to suppliers. "We cannot absorb these additional costs indefinitely. Eventually, they will have to be reflected in product prices," he said.

He warned that if Bangladeshi exporters are unwilling or unable to absorb the higher shipping costs, international buyers could shift orders to competing sourcing destinations.