Unilever Consumer Care Limited, maker of health food drinks Horlicks and Boost, reported a sharp earnings decline in the first half of 2026 as slowing sales and persistently high food inflation squeezed consumer spending.

According to its unaudited financial statements, net profit after tax fell 48% year-on-year to Tk19.9 crore in January-June, while revenue dropped 8% to Tk141 crore. Earnings per share (EPS) stood at Tk10.33.

The decline was driven by a 9.63% fall in its core health food drinks segment. Revenue from glucose powder, however, rose 2% to Tk19.37 crore, providing a minor cushion against the broader slowdown.

The second quarter was weaker still. Revenue fell 8% year-on-year to Tk72.96 crore, while net profit plunged 68% to Tk7.79 crore.

In a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (29 July), the company attributed the EPS decline to lower sales and a "high-base effect." In the corresponding period last year, it recognised a one-off gain after reassessing trademark and technology royalty obligations, making this year's comparison significantly weaker.

Market insiders said persistently high food inflation has forced many households to cut spending on nutritional supplements and premium beverages, weighing on demand.

Despite the profit decline, net operating cash flow per share improved to Tk30.13 due to lower operating cash outflows after most Usance Payable at Sight (UPAS) letters of credit were settled last year. Net asset value per share fell 27% to Tk84.62 following the FY2025 dividend payout.

Shares of the company closed 0.98% lower at Tk2,048 today, leaving its market capitalisation at Tk3,947 crore.

The company also announced several corporate decisions. Ruhul Quddus Khan, managing director of Unilever Bangladesh Limited, was appointed chairman of Unilever Consumer Care for a three-year term effective 28 July, replacing Masud Khan, who resigned after becoming chairman of the Bangladesh Securities and Exchange Commission.

Samsuddoha Nayeem was appointed head of finance and Sharmin Akter company secretary.

The board also approved an unsecured intercompany loan facility of up to Tk150 crore for related party Unilever Bangladesh Limited to support working capital. The facility will remain available for 24 months, with each drawdown capped at six months, and will be extended on arm's-length terms, meaning the transaction will be conducted as if between unrelated parties.

Listed multinational companies delivered mixed but largely weaker earnings in the first half (January-June) of 2026 as persistent inflation, subdued consumer demand and higher operating costs continued to squeeze profit margins.
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Market analysts said prolonged inflation eroded consumers' purchasing power, while elevated energy costs and sluggish economic activity weighed on sales growth and corporate profitability.

Economic activity has remained subdued since the political transition in August 2024, with tight monetary and fiscal policies further dampening private investment and household spending.

Akramul Alam, head of research at Royal Capital, said overall economic activity remained sluggish amid lingering macroeconomic challenges, while higher input costs increased operating expenses, hurting the profitability of multinational companies.

He also said the tight monetary and fiscal stance maintained by Bangladesh Bank since the political transition continued to suppress demand.

Eleven listed multinational companies that follow the January-December financial year have so far released their financial results for the January-June period of 2026.

Of them, four reported lower profits, one remained in the red due to a heavy debt burden and another slipped into losses. Meanwhile, four posted profit growth and one returned to profitability.

Marico Bangladesh and Berger Paints Bangladesh were excluded from the comparison as they follow the April-March financial year instead of the January-December calendar year.

The combined net profit of the 11 companies edged up marginally to Tk 26.07 billion in the first half of 2026 from Tk 25.96 billion in the same period a year earlier.

Their aggregate revenue remained almost flat at Tk 219.40 billion, compared with Tk 219.56 billion in the corresponding period of 2025, according to their financial statements.

As multinational firms operate across diverse sectors, the reasons behind profit erosion vary from company to company, analysts say.

Higher finance costs significantly affected companies with large debt burdens, while lower government spending under the Annual Development Programme (ADP) weighed on cement manufacturers by reducing construction activity.

Singer Bangladesh, for example, remained in the red, reporting a loss of Tk 422 million in the January-June this year, although sales grew 3.4 per cent to Tk 14.15 billion during the time.

The company, however, said sales remained below expectations as persistently high inflation, geopolitical uncertainties and adverse weather conditions continued to dampen demand for consumer electronics and home appliances.

Broader slowdown in the construction industry and reduced public sector spending hit cement manufacturers. As a result, Heidelberg Cement entered into fresh losses, reporting a loss of Tk 111 million in the January-June this year while sales dropped 11 per cent during the time.

LafargeHolcim Bangladesh, another multinational cement maker, also saw 8 per cent lower profit to Tk 2.17 billion in the first half of 2026.

The multinational companies failed to see growth in revenue and profit mainly because of macroeconomic worries at a time when consumers had little disposable income with inflation hovering over 9 per cent.

Bangladesh's top two mobile operators --- Grameenphone and Robi Axiata, posted contrasting earnings in the January-June this year, owing to diverging cost structures and financial strategies amid a wider economic slowdown.

Robi's profit surged 29 per cent to Tk 4.95 billion in the January-June 2026, driven by strong revenue growth, higher data consumption and an expanding subscriber base.

On the other hand, GP's profit dropped 6 per cent year-on-year to Tk 14.21 billion while revenue registered 2.5 per cent de-growth as the challenging macroeconomic environment weighed on business performance.

GP Chief Executive Officer Yasir Azman said the company demonstrated operational resilience despite a difficult business environment.

"We maintained a healthy EBITDA margin of around 58 per cent, demonstrating continued cost discipline and operational efficiency despite higher investments and a challenging operating environment," he said in a statement.

Unilever Consumer Care experienced a 48 per cent decline in profit year-on-year to Tk 119 million in January-June 2026 because of various factors including a fall in revenue earnings.

British American Tobacco Bangladesh posted a marginal 0.5 per cent decline in profit to Tk 4.13 billion, while net revenue fell 6 per cent to Tk 38.31 billion amid persistently high inflation.

However, Bata Shoe Company (Bangladesh) posted an impressive 86 per cent year-on-year profit growth to Tk 504 million in the first half of 2026, supported by stronger sales and improved operating cost management.

The footwear manufacturer's revenue rose 10 per cent to Tk 5.68 billion, driven primarily by Eid festive sales, supported by new product assortments and improved customer response to updated designs, said the company in its earnings note.

Reckitt Benckiser (Bangladesh) secured 4 per cent year-on-year growth in profit to Tk 304 million in January-June 2026, despite 2 per cent fall in sales to Tk 2.75 billion during the time.

Akramul Alam, head of research at Royal Capital, said the pace of recovery in corporate earnings would largely depend on easing inflation, stronger consumer confidence and a sustained rebound in economic activity over the coming months.

Net sales of National Savings Certificates (NSCs) dropped sharply in May 2026, reflecting weaker investor demand for the government-run instruments.
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According to latest Bangladesh Bank (BB) data, the net sales of savings and investment tools fell by 45.4 per cent to Tk 12.34 billion in May from Tk 22.60 billion in April.

The figure was also lower than that of Tk 15.37 billion in May 2025.

On the other hand, the sales of NSCs stood at only Tk 8.05 billion during the first 11 months (July-May) of FY2025-26.

The volume of sales stood at negative Tk 21.35 billion in March 2026, following a deficit of Tk 11.65 billion in February and Tk 18.51 billion in January.

Meanwhile, the outstanding balance of government savings instruments edged up to Tk 3.34 trillion at the end of May 2026 from Tk 3.33 trillion a month earlier.

On a yearly basis, the deficit in the NSC sales declined significantly. In FY'25, the net sales showed a deficit of Tk 60.63 billion, compared to a much larger deficit of Tk 211.24 billion in FY24.

Although such trend indicates a stabilisation, the sector remains under pressure.

Market insiders said such a downward trend in the net sales in May reflected continued weak demand for savings instruments, despite showing an improvement from the sharp deficits earlier this year.

They noted that although the overall shortfall narrowed compared with that of the previous fiscal year, investor appetite for the government-backed savings instruments remained subdued.

However, the introduction of the National Savings Certificates Online Management System in 2019, which requires e-TIN and National ID verification, resulted in the participation of institutional and high-value investors in this sector.

At the same time, rising interest rates also made deposits more attractive in the banking sector, while inflation eroded actual returns from the fixed-income savings instruments.

Experts said higher deposit rates offered by banks and persistently high inflation has made NSCs less attractive for the investors.

Dr Masrur Reaz, Chairman of Policy Exchange Bangladesh, said the slowdown in the NSC sales reflects changing investment preferences as higher deposit rates in the banking sector have made bank savings products more competitive.

Tighter compliance requirements under the online NSC management system have also reduced participation by large investors, he pointed out.

Dr Reaz said the recent improvement in net sales compared with the previous fiscal year suggests some stabilisation, but sustained demand for savings certificates will depend on inflation easing and the relative attractiveness of returns compared with other financial instruments.

Depositors of Sammilito Islami Bank will now be able to withdraw up to Tk10 lakh for emergency purposes, following a revision to Bangladesh Bank's withdrawal scheme for the merged Islamic lender.

The decision was approved at a meeting of the Bangladesh Bank board today (29 July), chaired by Governor Mostakur Rahman.

Previously, the scheme allowed withdrawals only for a depositor's own medical treatment.

Under the revised rules, depositors may also access funds for the medical treatment of immediate family members - including parents, children, siblings and spouses - as well as for other emergency needs.

The central bank has also decided that depositors with fixed deposits of more than one year will be able to withdraw their full savings after completing two years.

In addition, Bangladesh Bank is expected to remove the administrator from Sammilito Islami Bank by August.

Sammilito Islami Bank depositors can withdraw up to Tk10 lakh for medical treatment: BB
According to officials familiar with the meeting, the revised scheme was introduced after the central bank received widespread feedback that many depositors needed access to their savings for urgent expenses beyond medical treatment.

"A large number of depositors needed money for emergency purposes other than medical treatment, but the previous scheme did not allow such withdrawals. The revised scheme addresses that issue," a Bangladesh Bank official told The Business Standard.

'Unable to withdraw our own money, we are living in hardship,' say Sammilito Islami Bank depositors
Sammilito Islami Bank was established last year after the interim government merged five Shariah-based banks - EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank - which had been facing severe financial distress.

According to the central Bank, the banks had disbursed loans worth thousands of crores of taka without adequate collateral under their previous management, triggering a severe liquidity crisis and making it difficult to repay depositors.

The merged bank has a paid-up capital of Tk35,000 crore, of which the government has contributed Tk20,000 crore. The remaining Tk15,000 crore will be converted into shares for depositors.

Separately, the Deposit Insurance Trust Fund (DITF) has been providing up to Tk2 lakh to eligible depositors.

Bangladesh Bank said 8.22 million depositors have so far received Tk3,887 crore under the programme, including around 350,000 customers of First Security Islami Bank, who received approximately Tk1,600 crore.

Central bank data show that the five merged banks had outstanding loans of Tk1.95 lakh crore at the end of December.

Against those loans, collateral was valued at only Tk47,900 crore, or 24.56% of the total loan portfolio. Their combined non-performing loans currently stand at Tk1.705 lakh crore, equivalent to 87.43% of outstanding loans.

The government has approved the import of refined petroleum products worth Tk16,088.52 crore for July-December of FY2026-27 under government-to-government agreements with six state-owned foreign suppliers.

The decision was taken at the 33rd meeting of the Cabinet Committee on Government Purchase, chaired by Finance Minister Amir Khosru Mahmud Chowdhury at the Cabinet Division conference room in the Secretariat today (29 July).

According to the Cabinet Division, the Energy and Mineral Resources Division submitted the proposal based on predetermined premiums, import volumes and prevailing international reference prices.

The six suppliers are the UAE's Enoc, China's PetroChina and Unipec, India's Indian Oil Corporation Limited, Thailand's OQT and Indonesia's BSP.

Other approvals

The committee approved a Tk125.99 crore proposal under the Local Government Engineering Department's Resilient Infrastructure for Adaptation and Vulnerability Reduction, or RIVER, project.

The project will construct 15 government primary school-cum-flood shelters in Bogura with financing from the World Bank and the Bangladesh government.

The committee also approved Tk49.14 crore for constructing a fertiliser buffer warehouse with a capacity of 10,000 tonnes in Lakshmipur.

It also approved a revised levelised tariff for electricity purchased from the Ashuganj 450MW Combined Cycle North Power Plant, operated by Ashuganj Power Station Company Limited.

The revised tariff was set at 4.0945 US cents per kilowatt-hour, equivalent to Tk5.0281 per unit.

The committee also approved three procurement proposals submitted by the Bangladesh Economic Zones Authority.

These included a Tk123.34 crore contract for Monico Limited to construct road networks in sub-zones 6, 7, 11 and 18 of the National Special Economic Zone in Mirsarai, Chattogram.

Oil ​prices rose by about $3 a barrel on Wednesday after joint strikes in Iraq by the ‌United States and Saudi Arabia, and the interception of Iran's ballistic missiles aimed at US forces in the Middle East, while US crude inventories shrank.

Brent futures increased by $3.15, or 3.8 percent, to $87.24 a barrel by 0520 GMT, while US West Texas Intermediate (WTI) crude rose $2.73, ​or 3.4 percent, to $81.99 a barrel.
"Renewed strength comes after the US said it intercepted a surprise attack on ​US troops," ING analysts said in a note, adding that the latest developments dampen expectations ⁠for a swift de-escalation in the Gulf.The United States and Saudi Arabia launched strikes on Iran-backed groups in Iraq ​on Wednesday, blaming them for drone attacks on Saudi oil facilities, prompting Iran to warn that blaming it for ​such attacks was a "major miscalculation".The strikes came hours after the US military said it averted a surprise Iranian attack on US troops in the region.

Just five commodity ships passed through the Strait of Hormuz on Tuesday, where tanker traffic remains low.

Oman presented Iran with a plan ​backed by Gulf states to manage the waterway, including collecting voluntary fees for its use, a Gulf source ​and a Western diplomat told Reuters on Tuesday.

But Tehran has ruled out Oman's proposal for regional joint management of the waterway, which ‌carried a ⁠fifth of global crude oil and natural gas shipments before the war, ruling out chances of success, a senior Iranian official said on Wednesday.

"We believe Brent oil prices will continue to whipsaw in the $80-$100 per barrel range in the near term as the conflict ebbs and flows in the Middle East," said Suvro Sarkar, head of ​energy research at DBS Bank.

The ​situation has escalated after ⁠US President Donald Trump signalled a return to diplomacy in the week, he added.

"This series of stop-start negotiations means a complete removal of the Strait of Hormuz blockade ​is not achieved, and oil prices could see higher floor of around $80 per barrel ​even under ⁠a de-escalation scenario."

US crude inventories fell by about 3.3 million barrels in the week ended July 24, market sources said on Tuesday, citing data from the American Petroleum Institute.

Official inventory data from the Energy Information Administration is due later on Wednesday.

Further ⁠supporting ​prices, OPEC+ is likely to halt oil output increases for three months starting ​in October, sources told Reuters, after the producer group completes the scheduled return of barrels following voluntary cuts.

Bangladesh Bank (BB) has instructed banks not to provide any policy support or incentives to borrowers until they withdraw lawsuits filed against the government, the central bank, or the concerned banks.

The central bank issued a circular in this regard yesterday, saying the directive aims to reduce litigation in the banking sector and ensure that policy support reaches borrowers free from ongoing legal disputes with public authorities or banks.

The circular said Bangladesh Bank has introduced various policy measures to boost private investment, generate employment, and promote sustainable economic growth by increasing credit flow to productive sectors.

Under these initiatives, borrowers in export-oriented industries, agriculture, cottage, micro, small and medium enterprises (CMSMEs), and other sectors have been receiving various incentives and policy support through banks.

However, the central bank observed that some borrowers have been receiving such support while simultaneously pursuing writ petitions and other legal cases against the government, Bangladesh Bank, and the respective banks.

Under the new directive, banks must verify whether an applicant has any pending writ petition or other lawsuit against the government, Bangladesh Bank, or the concerned bank before extending any incentive package or policy support announced by the government or the central bank.

If any such cases exist, the borrower must withdraw them before the application can be considered.

Banks have also been instructed to obtain affidavits from applicants declaring that they have no pending legal cases against the government, Bangladesh Bank, or the relevant bank.

Applicants who have withdrawn cases must submit a list of those cases along with their applications.

The directive, issued under Section 45 of the Bank Companies Act, 1991, takes immediate effect.

LafargeHolcim Bangladesh PLC has reported a resilient financial performance for the second quarter ended June 2026, with its net profit after tax rising by 8% year-on-year to reach Tk104.5 crore.

The multinational cement manufacturer's board today (29 July) approved the unaudited financial statements for the first half of 2026, reporting a strong second-quarter rebound despite persistent inflation and elevated energy costs.

According to the financial statements, April-June revenue rose 14% year-on-year to Tk739.7 crore from Tk646.6 crore, driven by strategic price adjustments and strong demand for the company's value-added products.
The improved performance also lifted operating earnings before interest and taxes (EBIT) by 18% to Tk140.6 crore, enabling the company to maintain healthy margins despite macroeconomic headwinds.

Despite the robust second quarter, the first-half results continued to reflect the impact of earlier economic pressures. Net sales for January-June increased 3% year-on-year to Tk1,543.6 crore from Tk1,498.1 crore in the same period last year.

However, the consolidated net profit after tax for the first half fell by 8% to settle at Tk216.6 crore, and earnings per share (EPS) declined to Tk1.87 from Tk2.03 in the previous year.

Iqbal Chowdhury, chief executive officer of LafargeHolcim Bangladesh, said the company's performance reflects its strong brand equity and ability to adapt through innovation and pricing discipline.

He highlighted decisive measures to protect margins from rising gas tariffs and market volatility, including a successful energy transition through Geocycle, its waste management arm, which co-processed nearly 21,000 tonnes of non-recyclable waste into alternative fuel.

Despite expecting macroeconomic volatility to persist for the rest of the year, the company remains optimistic about sustaining its industry-leading margins.

The management highlighted the specialised solution offerings, such as Holcim Water Protect and Coastal Guard, alongside the aggregates business, which has demonstrated significant volume growth and price momentum.

This segment is positioned as a high-potential driver capable of unlocking long-term value for stakeholders throughout 2026.

United Commercial Bank (UCB) reported a 90% year-on-year increase in consolidated net profit to Tk34.04 crore in the first half of 2026, driven by stronger contributions from its subsidiaries and a sharp decline in loan-loss provisioning.

According to the bank's half-year financial statements, consolidated earnings per share (EPS) rose to Tk0.22 for the January-June period from Tk0.12 a year earlier.The bank said the improvement in EPS was largely attributable to better performance by its subsidiaries.
During the period, interest income edged up to Tk3,097 crore, while interest expenses on deposits and borrowings increased at a faster pace, rising 24% to Tk2,813 crore. As a result, net interest income fell 65% year-on-year to Tk283.72 crore.The decline in core interest income was offset by strong non-interest earnings. Income from investments – including government treasury bills, bonds and zero-coupon bonds – jumped 71% to Tk921 crore, while commission, exchange and brokerage income rose 3.3% to Tk428 crore. Other operating income, however, fell to Tk13.37 crore.

The bank also benefited from a sharp reduction in provisioning. It set aside Tk214 crore against loans during the first half, down from Tk615 crore in the corresponding period of 2025.

In the April-June quarter, UCB's consolidated net profit rose 91% year-on-year to Tk22.66 crore from Tk11.88 crore.

Quarterly EPS increased to Tk0.15 from Tk0.08 a year earlier.

Investment income surged 87.6% during the quarter to Tk552 crore, while provisioning fell sharply to Tk60.84 crore from Tk372.55 crore in the same quarter last year, supporting the improvement in profitability.

Berger Paints Bangladesh has decided to invest Tk20 crore in the ordinary share capital of its wholly owned subsidiary, Jenson & Nicholson (Bangladesh) Limited, according to a disclosure published on the stock exchanges today (29 July).

Jenson & Nicholson manufactures metal containers for the paint, food and other industries. Established in Bangladesh in 1995, the company operates manufacturing facilities in Chattogram and Dhaka.

Over the years, it has expanded its product range from paint containers to lubricant, engine oil, hair oil and food-grade containers. The company has also entered the fancy container segment, becoming the first manufacturer of such containers in Bangladesh, according to Berger

Paints' website.Berger Q1 profit doubles

Separately, Berger Paints reported a 111% year-on-year jump in consolidated net profit for the April-June quarter, driven by higher sales, strategic price adjustments, lower finance costs and tax-related gains.

The company's revenue rose 15% to Tk814.19 crore in the first quarter of 2026 from Tk708.73 crore a year earlier.

Net profit after tax climbed to Tk180.77 crore from Tk85.69 crore, while earnings per share (EPS) increased to Tk36.81 from Tk18.11.

In its financial statement, Berger said the sharp rise in EPS was mainly due to higher sales, price adjustments to offset rising raw material and packaging costs, and lower interest expenses on UPAS loans.

The company also attributed the earnings growth to a lower effective tax rate and favourable adjustments to tax liabilities recognised in the previous year following the enactment of the Finance Act 2026.

IDLC Finance PLC, the country's leading non-bank financial institution (NBFI), reported a consolidated net profit of Tk137 crore for the first half of 2026, up 26% year-on-year, despite a challenging macroeconomic environment.

The performance underscores the company's resilient business model and strong asset quality, the company said in a press release.

According to the unaudited financial statements approved at a board meeting yesterday (28 July), consolidated earnings per share (EPS) rose to Tk2.99 for the January-June period from Tk2.37 a year earlier.
Profitability also improved, with annualised return on equity (ROE) increasing to 12.36% and return on assets (ROA) to 1.52%, reflecting more efficient use of capital and assets.

On a standalone basis, IDLC maintained a formidable balance sheet, with customer deposits reaching Tk11,454 crore and a total loan portfolio standing at Tk11,760 crore.

A key highlight of the first-half performance was IDLC Finance's strong asset quality. Its non-performing loan (NPL) ratio improved to 4.47% from 4.58% a year earlier, remaining well below the industry average, the company said.

The company also maintained an NPL provision coverage ratio of 112%, underscoring its prudent risk management and long-term financial resilience. Its subsidiaries—IDLC Securities, IDLC Investments and IDLC Asset Management—also made positive contributions, reinforcing the strength of the group's integrated financial platform.

Managing Director and CEO M Jamal Uddin said despite the industry's high funding costs and asset quality challenges, IDLC remained focused on maintaining a healthy balance sheet and strengthening customer relationships.

Chairman Kazi Mahmood Sattar said the improved profitability and portfolio quality had positioned the company for sustainable growth in the years ahead.

Following the disclosure of its unaudited financial statements on the Dhaka bourse on Wednesday, IDLC's shares fell 2.52% to close at Tk46.50.

At Bashundhara Shopping Complex, Rafique Ahmed was looking for a used iPhone 15. A student at Pabna University of Science and Technology, he had travelled from Pabna to Dhaka with his father because a new one was beyond the family's reach.

"I am buying a pre-owned phone because it is half the price of a new phone, but the quality is almost the same," Rafique said.

His father, Abdus Sobhan, was less enthusiastic but candid about the economics of the purchase. "We are a middle-class family, and my son has always wanted this phone. But we cannot afford a new one, so we are buying a pre-owned device," he said. "I am not a fan of buying used things, especially gadgets, but our financial situation leaves us with little choice."

However, the choice comes with anxiety. Whether the quality is truly the same as Rafique believes remains a question.

"When buying second-hand, what I need the most is luck," Abdus Sobhan said. "We are no experts. The phone could perform poorly and break down within a month or two, and there would be nothing we could do. There is no warranty or guarantee here."

That trade-off between affordability and risk is driving a global market. According to Global Market Insights, the worldwide used-electronics market could reach about $153 billion this year. As shortages of computer memory push up the prices of game consoles, smartphones, and computers, second-hand devices are becoming increasingly attractive to budget-conscious buyers.

Bangladesh also reflects that shift.

Abdullah Al Mamun of Like Telecom in Bashundhara said the shop sells both new and used phones. "We are one of the biggest sellers in the market. The second-hand phones we sell are mostly checked by our experts and then cleared for sale," he said. "Sometimes second-hand phones do turn out to be faulty, but we provide customers with a 10-day replacement warranty. If anything goes wrong within those 10 days, we replace the phone."

The most common pre-owned devices, he said, are iPhones and Samsung flagships.

"Prices vary depending on their condition," Mamun said. "If we have replaced the battery or the glass, the price is different. A phone with 95% battery health and a body in good condition is an excellent device and would retain 75–80% of its original value."

Facebook has also transformed the trade. "We list all our pre-owned phones, as well as new ones, on Facebook Marketplace," Mamun said. "It is a great platform. Most of our pre-owned phone customers find us there. Back in 2017 or 2018, we used to sell through our Facebook page, but now almost all our business comes through the marketplace."

Social media has also enabled person-to-person trading.

Shahriar Alam, a student at Daffodil Polytechnic Institute, bought an SSD and RAM through the platform. "The prices of new SSDs and RAM shot up after the tariff hikes and the Iran war," he said. "So buying second-hand was the best option, and so far, the products have worked really well. I bought them from someone who was upgrading his PC through Facebook Marketplace."

For laptops, Multiplan Computer City Centre at the capital's New Elephant Road is a major destination.

Niloy Biswas, a first-year student at Dhaka University, went there after failing to find one within his budget elsewhere.

"I need a laptop for study purposes, and my budget is very tight, so one of my seniors suggested I come here and buy a pre-owned one," he said. "I previously went to Alpona Plaza and visited a few shops, but none had anything within my budget."

Niloy had also searched online for a buying checklist. "I'll go through that. If everything checks out and it fits my budget, then I'll buy it," he said.

Prices [of iPhones] vary depending on their condition. If we have replaced the battery or the glass, the price is different. A phone with 95% battery health and a body in good condition is an excellent device and would retain 75–80% of its original value.

Abdullah Al Mamun, Salesman, Like Telecom
Al-Amin Hossain came to buy a laptop for his son. "My son is in his first year of college. He needs a laptop, but our financial situation does not allow us to spend Tk1.5 lakh or Tk2 lakh," he said. "I have heard that you can get the same products second-hand for about two-thirds of the original price. So here I am."

After phones and laptops, cameras attract a significant number of buyers in the second-hand market. Baitul Mukarram, Bangladesh's largest camera market, has more than 200 shops selling new and used cameras, lenses and other photography equipment.

Sharif Haque, manager of Camera World, said beginner photographers with limited budgets make up the largest customer group. "We buy and sell cameras, lenses, accessories and all kinds of photography gear," he said.

"If you want a full-frame mirrorless camera, the body could cost around Tk1.5 lakh to Tk2 lakh," Haque said. "A pre-owned one can cost around Tk1 lakh. The money you save can be used to buy a lens and other accessories. Pre-owned lenses are in even greater demand. If a new lens costs Tk30,000, a used one can cost Tk15,000 to Tk20,000, or even less if you find a good deal."

Lower prices, however, do not eliminate uncertainty. Muhammad Samee, a former Samsung software engineer, warned against equating used devices with factory-sealed ones.

"We definitely do not recommend buying refurbished or used gadgets," he said. "When a gadget is sold through our shops, we know its quality is intact and that it has not been tampered with. But with a pre-owned device, you never know, and that creates a major risk to its longevity."

After phones and laptops, cameras attract a significant number of buyers in the second-hand market.

Humayun Ahmed, a retailer at IDB Bhaban who has been in the business for 25 years, sees both sides.

"Buying a used gadget instead of a new one can save you a significant amount of money," he said. It can also provide access to premium features, as flagship devices depreciate over time and eventually become much more affordable.

Buying used, however, is "a little bit tricky". Humayun advised buyers to inspect the device for dents and scratches, check the ports, buttons, screen and dead pixels, and ask how old it is, as a less-used device generally performs better while an older one should cost less. He also recommended comparing the specifications with their actual needs rather than choosing a device based on specifications alone.

Buyers should also test the camera thoroughly, including photo, video, time-lapse, slow-motion, panorama, flash and selfie modes, and assess charging speed, battery life and whether the battery percentage drops unexpectedly after reaching a certain level.

Finally, they should test calls, Wi-Fi, mobile data, speakers and sensors; research model-specific issues such as green or pink display lines, motherboard failures or defective cameras; check how much software support remains; and compare the asking price with prevailing market rates, including the price of a new device where available.

Buyers should verify that a device is not stolen, avoid suspicious Facebook accounts and unusually cheap offers, keep a record of the seller's identification when buying from an unknown individual, confirm any warranty using the serial number, ask what incident led to previous repairs and which parts were replaced, and check that the accessories match the advertised condition. They should also keep the original box, which may help if the phone is lost.

Humayun advised iPhone and MacBook buyers to check battery health in the settings, while iPad buyers can connect the device to a PC and use 3uTools. Android buyers may need to rely on screen-on time and the seller's account of the device's performance.

"As taxes on imported gadgets continue to rise, buying a used gadget at this moment could be an economical decision," he said. "You are not only saving money, but you are also helping the environment. Giving a gadget a longer life means potentially less e-waste and a more sustainable future."

Some products, however, are poor candidates for the second-hand market. Consumer experts at the US PIRG advise caution when buying large televisions, heavily used printers and second-hand smartwatches. Television screens are fragile, printers wear down over time, and wearables can be damaged by sweat. Refurbished AirPods and other wireless earbuds may also remain linked to a previous owner's account, preventing the Find My feature from working properly.

The main question is how much useful life a device has left. Batteries deteriorate, repairs become more expensive, screens can be difficult to replace, and manufacturers eventually stop providing software updates. Apple, Samsung and Google now provide around seven years of software support for their smartphones.

Islami Bank Bangladesh, one of the country's largest private sector lenders, reported a record consolidated loss of Tk1,316.48 crore for the first half of 2026, reversing a profit recorded in the same period last year.

The bank had posted a consolidated profit of Tk67.40 crore in January-June 2025. At the end of June 2026, its consolidated loss per share (EPS) stood at Tk8.10. The bank disclosed the financial results today (29 July) following a meeting of its board of directors at its headquarters.

The latest loss marks a sharp deterioration from its recent financial performance. According to its annual reports, Islami Bank remained profitable over the past five years, posting profits of Tk136.34 crore in 2025, Tk108.78 crore in 2024 and Tk635.33 crore in 2023, its highest profit during the period.

The bank had already incurred a loss of Tk288 crore in the first quarter of 2026. According to its price-sensitive information, Tk1,028.26 crore of the total consolidated loss came in the April-June second quarter.

On a standalone basis, excluding subsidiaries, Islami Bank reported a loss of Tk1,326.81 crore in the first half, with EPS falling to Tk8.24.

The bank attributed the losses mainly to higher Profit Paid on Deposits (PPD) expenses, lower investment income due to rising non-performing investments and reduced income from placements with other banks.

A senior Islami Bank official told The Business Standard that the losses were largely driven by poor recovery from loans taken by S Alam Group through alleged irregularities. "We are not receiving any recovery from those loans, while we still have to pay full profits to depositors," he said.

The official said the bank has Tk1.62 lakh crore in deposits, but recovery is possible from only around Tk60,000 crore. "Nearly Tk1 lakh crore is largely tied to loans taken through S Alam's loan irregularities, with no recovery so far," he added.

He said the crisis could ease if Bangladesh Bank's planned asset management company acquires the bad assets or allows S Alam-linked loans to be separated from the bank's balance sheet through a special arrangement.

The official added that the bank received nearly Tk500 crore in new deposits in two days, and a new board from Bangladesh Bank could further restore customer confidence and attract corporate deposits.

Acting Managing Director Md Altaf Hossain said the bank's large investment exposure to a major group was generating no income, while depositors' profits still had to be paid.

He added that under Shariah banking rules, unrealised income is kept as suspense income rather than recognised as earnings. Recovery of such income in the future could significantly boost the bank's profits, he said.

Asset deterioration wipes out IFIC Bank's positive NAV

IFIC Bank PLC reported a consolidated net loss of Tk1,668.24 crore in the first half of 2026, as worsening asset quality severely affected its financial performance.

According to the bank's price-sensitive information released after a board meeting yesterday, its consolidated loss per share (EPS) widened to Tk8.68 for January-June 2026, compared with Tk5.87 in the same period last year.

The downturn deepened in the second quarter, with the bank posting a consolidated negative EPS of Tk4.20 during April-June 2026, compared with Tk3.27 in the corresponding period of 2025.

The losses also eroded the bank's asset base, pushing its consolidated net asset value (NAV) per share into negative territory at minus Tk3.69 as of 30 June 2026. A year earlier, the bank's NAV per share stood at a positive Tk12.34.

IFIC Bank attributed the sharp decline in EPS and cash flows to mounting operating losses and a significant deterioration in asset quality.

Despite offering tax relief in several areas in the FY2026-27 budget, the government has set the National Board of Revenue (NBR) an ambitious target of collecting 56% more income tax than the previous fiscal year. To achieve this goal, the tax authorities plan to rely heavily on source tax, aiming to collect an additional Tk52,000 crore through this channel.

On Monday, the NBR submitted an income tax collection plan to Prime Minister's Economic Affairs Adviser Rashed Al Mahmud Titumir, outlining its strategy to boost revenue, with source tax collection playing a central role.

Business leaders, however, fear that the drive to collect an additional Tk54,000 crore could lead to increased harassment of businesses. They warn that, alongside targeting major tax evaders, even minor compliance errors by companies could trigger enforcement actions, potentially increasing irregularities in the tax administration process.

Earlier this month, the NBR announced that it would conduct special inspections to verify whether organisations responsible for deducting source tax are complying with the law. Under the initiative, tax officials will have the authority to enter business premises without obstruction, inspect records, and seize documents and computers where necessary.
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The rules also provide for fines of up to Tk50 lakh for non-cooperation.

The business community has taken the issue seriously, with several trade bodies already issuing statements expressing concern over the move.

NBR officials, however, reject those concerns, arguing that only companies attempting to evade taxes have reason to worry.

Speaking to The Business Standard on condition of anonymity, a senior NBR official said, "More than 70% of our income tax collection comes from source tax, which is mainly deducted by companies. However, this is also where a significant portion of tax evasion occurs."

He explained, "A company may be required to deduct Tk1 crore in source tax annually, but through various methods it may end up paying only Tk50 lakh or even Tk30 lakh. Until now, monitoring has not been strict. This time, legal provisions will allow us to strengthen oversight.

"So long as a company does not evade taxes, it has nothing to fear from this initiative."

In the recently concluded FY26, the NBR collected Tk1,42,827 crore in income tax, of which Tk1,02,112 crore came from source tax. In FY27, it aims to collect Tk1,54,000 crore through source tax alone, an increase of nearly 51% from the previous fiscal year.

The official noted that although the latest budget granted source tax exemptions in several sectors, the NBR must still increase overall income tax collection by 56%.

"That means we have to achieve the target by reducing the compliance gap," he said.

He added that a new 0.20% source tax on retail businesses is expected to generate an additional Tk2,000 crore. The NBR will also strengthen efforts to ensure proper tax collection from imports, supplies, banking transactions and remittance taxes.

Business leaders remain concerned.

Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI), told TBS, "We have no objection to uncovering tax evasion. But we fear that businesses may face harassment over minor mistakes.

"The policies formulated at the NBR's central level are often not implemented properly by field officials."

"Businesses are already under pressure, and this could create additional burdens," he added.

Eight business associations, including the BGMEA and the BKMEA, have issued a joint statement, expressing concern over the NBR's decision to grant tax officials broad powers to enter business premises, seize documents and impose penalties.

Mohammad Hatem, president of the BKMEA, told TBS, "Companies collect source tax on behalf of the NBR – a responsibility that essentially belongs to the tax authorities. If a company makes an error in that process, it is not reasonable to impose fines or additional tax liabilities on it."

He said, "If field-level officials are given unrestricted powers to enter business premises and enforce tax collection, it will increase harassment and create greater opportunities for bribery. This initiative risks making the taxation system more controversial."

Dr Syed Md Aminul Karim, a former member of the National Board of Revenue (NBR), believes there is no reason to create fear over the issue.

He said the NBR already has the legal authority to enter business premises, seize documents and impose fines if officials are obstructed. "So, there is no need to make a separate announcement about these powers," he said.

"If the NBR suspects that a company is evading taxes, it can already exercise those powers. But there is no justification for creating fear among the business community," he added.

However, he acknowledged that tax evasion involving source tax is widespread. "The NBR needs to develop effective mechanisms to curb such evasion," he said.

With mill production reportedly nearly halved over the past week, textile millers yesterday pressed Prime Minister Tarique Rahman for a solution to the gas crisis.

They raised the demand at a meeting with the premier at his office in Dhaka as the nearly $25 billion worth primary textile sector is experiencing multifaceted challenges primarily for gas crisis, safety in the business and cheap import of yarn from other countries.

After the meeting, Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), said they also discussed the troubled banking sector and high bank interest rates.

The prime minister has assured them that the government is working to install two more floating storage and regasification units (FSRUs) to ease the shortage, Showkat said.

Showkat Aziz Russell, president of the Bangladesh Textile Mills Association, said they also discussed the troubled banking sector and high bank interest rates

The BTMA president announced that the association will hold a follow-up meeting with the prime minister within the next few weeks, this time bringing in leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

A committee was earlier formed at the prime minister’s office to work on the sector’s development in consultation with stakeholders.

Commerce Minister Khandaker Abdul Muktadir, Finance and Planning Adviser to the Prime Minister Rashed Al Mahmud Titumir, Bangladesh Bank Governor Md Mostakur Rahman, and Acting NBR Chairman Ahsan Habib were present at the meeting.

GARMENT MAKERS PRESS THEIR OWN CASE

Earlier on Monday, the BGMEA and BKMEA demanded an uninterrupted supply of gas from CNG filling stations, after garment factories running on CNG to keep production going reported repeated supply disruptions.

Leaders of the two trade bodies separately wrote to Energy Secretary Mohammad Saiful Islam and the Petrobangla Chairman Md Abdul Mannan with their demands, BKMEA President Mohammad Hatem told The Daily Star.

Many factory owners have been buying CNG from nearby filling stations to keep their units running, he said, but disruptions there have made even that workaround unreliable.

Hatem said he had written to BKMEA members advising them to buy CNG from filling stations in the meantime.

Meanwhile, following a meeting with the BKMEA president on Monday, Secretary Saiful directed Titas Gas authorities to allow garment factories to keep collecting gas from CNG filling stations.

The directive came after Titas Gas Transmission and Distribution Company instructed CNG filling stations to stop selling natural gas into open cylinders or gas cascade cylinders not mounted on authorised vehicles, citing safety concerns and violations of the Gas Act 2010 and Gas Distribution Rules 2026.

Farhan Noor, secretary general of the Bangladesh CNG Filling Station and Conversion Workshop Owners Association, said he had received two letters from the BGMEA and BKMEA requesting CNG sales to garment factories.

Station owners are supplying them given the circumstances, he said -- even though selling gas by the lorry-load is not technically permitted.

The energy secretary and Petrobangla chairman could not be reached over phone despite several attempts.

The global race to build artificial intelligence is redrawing Asia’s air cargo map, prompting airlines to redesign networks around growing ​semiconductor manufacturing hubs as cross-border e-commerce loses momentum.

Unlike the post-pandemic parcel boom, demand tied to AI infrastructure is underpinned by multi-year orders for advanced memory chips and processors ‌and hundreds of billions of dollars of planned investment in data centres, airlines and logistics companies say.
At the same time, tighter low-value import rules in the US and Europe are dampening the cross-border e-commerce trade that has driven much of the industry’s recent growth.

“E-commerce was air freight’s single biggest growth pillar, but that is no longer the case,” Niall van de Wouw, chief airfreight officer at Xeneta, said when the freight analytics firm issued its mid-year outlook ​this month.

Korean Air Lines offers one of the clearest examples of the transition.

Cargo revenue surged 46 percent in the second quarter to 1.54 trillion won ($1.07 billion), driven by AI chips, server ​racks and data centre infrastructure that the airline said had replaced e-commerce shipments from China as its primary growth engine.

Advanced high-tech cargo “has rapidly expanded as a core growth driver,” said Jaedong Eum, executive vice president and head of Korean Air’s cargo business.

Demand is unusually visible, he said, with orders for advanced high-bandwidth memory chips and processors ​already stretching two to three years into the future even as demand continues to exceed supply.

Global semiconductor sales more than doubled year-on-year in April, the strongest growth since records began in 1986, according ​to Xeneta. By contrast, China’s low-value and e-commerce exports fell 7 percent in May, marking a sixth consecutive monthly decline.

The US ended duty-free de minimis treatment for low-value imports from China last year, while the European Union this month abolished its own duty-free threshold.

Fast-fashion retailer Shein said on Sunday those changes had hurt its US business and were expected to create further headwinds in Europe. Japan’s ANA Holdings said in a statement that the EU move was ​a downside risk for the broader cargo market even as semiconductor-related shipments remained strong.

REDRAWING TRADE ROUTES

The changing cargo mix is also redrawing trade routes across Asia. Japan exports semiconductor manufacturing equipment, South ​Korea produces advanced memory chips and Taiwan is the centre of leading-edge chip production.

Vietnam, Malaysia, Thailand and Singapore are emerging as increasingly important manufacturing and assembly hubs for AI servers destined for North America and Europe.

Freight ‌throughput at Singapore’s Changi Airport grew 8.7 percent year-on-year in the first half driven by strong global semiconductor demand, said Lim Ching Kiat, the airport group’s executive vice president for air hub and cargo development. Airlines are reorganising around those flows.

Japan Airlines said technology products accounted for about 80 percent of the increase in air exports from Asia excluding China over the past year, underscoring how semiconductor and AI-related hardware is reshaping regional cargo flows. It has expanded freighter services linking semiconductor hubs such as Taipei, Bangkok and Hanoi with Tokyo’s Narita airport.

ANA said it was integrating Nippon Cargo Airlines to shift more large ​freighters onto trans-Pacific and European routes while using ​its Asian network to funnel semiconductor cargo from manufacturing hubs across the region.

In Taiwan, China Airlines has added Southeast Asia freighter flights as manufacturers diversify production and said AI-related demand helped lift cargo volumes 8.1 percent in the first half of the year. EVA Airways said AI-related shipments now account for up to half of its cargo revenue.

Airlines ​say AI hardware requires different handling from traditional air freight because shipments often include delicate, high-value semiconductor manufacturing equipment, graphics processors and complete ​server racks.

Airline group IATA ⁠estimates AI-related goods accounted for 53.5 percent of the value of goods carried by air in 2025 while making up just 7 percent of cargo volume. Unlike much e-commerce cargo, AI hardware is compact, extremely valuable and often time-critical to keep data centre projects on schedule, making air transport worth the premium.
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To adapt to the changing market, Cathay Pacific Airways said it had introduced software that automatically determines how sensitive semiconductor equipment and AI ​hardware should be loaded and secured inside aircraft.

The surge is also stretching cargo infrastructure. Dimerco Express Group said AI and ​semiconductor shipments had filled Taiwan’s Taipei air cargo hub to capacity in July, keeping freight space tight on routes to the US and within Asia.

“As major tech companies introduce next-generation AI processors and continue their long-term infrastructure commitments, we anticipate ​strong cargo demand to persist through the second half of 2026,” Korean Air’s Eum said.

The Bangladesh Bank has introduced a bank-intermediated framework for cross-border digital payments, paving the way for local banks to partner with international payment platforms such as PayPal, Payoneer and similar service providers.

This decision is likely to overhaul Bangladesh's digital trade infrastructure, removing barriers for freelancers, easing software procurement for startups, and integrating local merchants directly into the global digital economy.

In a circular issued today (29 July), the central bank cleared authorised dealer (AD) banks to offer cross-border digital payment services through partnerships with foreign payment platforms, digital wallets, online payment gateways and other approved payment solution providers – collectively termed cross-border digital payment service providers (CDPSPs).

It said the initiative is aimed at modernising the country's payment ecosystem, facilitating international trade in services and expanding digital financial inclusion.

While Payoneer already operates in Bangladesh and PayPal's Xoom service offers limited inbound remittance facilities, the new circular establishes a comprehensive regulatory framework enabling banks to offer the full range of services of cross-border digital payment service providers.

Under the new guidelines, local banks can now directly partner with foreign digital payment service providers to streamline both inward and outward international transactions.

While the framework imposes strict regulatory oversight through real-time parallel ledgers and small-value payment caps, its economic ripple effects will be profound, driving formal banking adoption among gig workers, expanding international trade in digital services, and unlocking new foreign consumer spending within the local economy.

A key feature of the framework is the introduction of Digital Value Accounts (DVAs) – digital wallets or stored-value accounts opened in customers' names. However, these wallets will not operate independently.

Each DVA must be linked to a Master DVA, or settlement account, maintained by the partner bank to ensure regulatory oversight, fund security and settlement control.

Banks will also be required to monitor all transactions in real time through their own systems and maintain a parallel ledger of DVA transactions. Any unused balance must remain under the bank's control and be refunded or adjusted in line with regulatory requirements.

The framework now allows individuals, businesses and freelancers to use the service for a range of approved foreign currency transactions.

DVAs may be used for travel-related foreign exchange under private, medical and official travel quotas, as well as for visa processing fees, hotel bookings, membership fees and IT-related services.

Users will also be able to make international online payments of up to $300 per transaction.

The facility may also be extended against balances held in Export Retention Quota (ERQ) and Resident Foreign Currency Deposit (RFCD) accounts. For corporate ERQ account holders, up to three senior officials will be permitted to use DVAs for business-related expenses.

The framework is expected to make it easier for freelancers and e-commerce entrepreneurs to receive overseas earnings through regulated digital payment channels.

It will also allow foreign nationals and tourists visiting Bangladesh to make digital payments at local merchant outlets.

However, before launching the services, banks must obtain prior acknowledgement from Bangladesh Bank's Foreign Exchange Policy Department by submitting details of their partnerships, technology infrastructure, cybersecurity measures and compliance arrangements.

Participating banks must also comply with anti-money laundering (AML) and customer due diligence (CDD/KYC) regulations and regularly submit transaction reports to the central bank.

According to stakeholders, the move significantly expands Bangladesh's regulated digital payment infrastructure. Previously, banks were largely permitted to use online payment gateway service providers (OPGSPs) only for inward remittance transactions.

Market observers believe the framework could encourage global platforms such as PayPal, Payoneer and Stripe to expand their presence in Bangladesh.

The central bank move comes as the government recently stepped up efforts to bring PayPal to Bangladesh. During a question-and-answer session in parliament on 15 April, Prime Minister Tarique Rahman said a special committee had been formed to facilitate the launch of the international payment gateway. Chaired by Rehan Asif Asad, adviser to the Ministry of Posts, Telecommunications and Information Technology, the committee includes the Bangladesh Bank governor, the Bida chairman, the NBR chairman and other senior officials.

PayPal had so far expressed interest in entering Bangladesh on several occasions.

Earlier this year, Lutfey Siddiqi, the interim government's special envoy on international affairs, said discussions were under way with PayPal, although the process could take time.

In December 2025, former Bangladesh Bank governor Ahsan H Mansur had also said the service would primarily support freelancers, e-commerce entrepreneurs and the IT sector. PayPal's South Asia team later visited Bangladesh and held meetings with freelancers and ICT Division officials.

Lending by foreign banks operating in Bangladesh declined 11 percent in 2025, with a Bangladesh Bank (BB) report describing the contraction as a “cautious business strategy”.

Last year, nine foreign banks had Tk 46,122 crore in loans and advances across sectors including agriculture, construction, industry and transport.

The amount was Tk 51,970 crore in 2024, according to the BB report titled “Foreign Banks’ Operation in Bangladesh: Trends and Operational Insights (July-December, 2025),” published yesterday.

The decline was most pronounced in trade and commerce, where loans dropped 42 percent to Tk 9,110 crore by the end of 2025 from Tk 15,690 crore a year earlier.

The BB said this reflected subdued trade financing activities and possible portfolio adjustments amid changing economic conditions. Credit to the construction sector also declined during the period.

Conversely, lending to industry, the main recipient of funds from foreign lenders, grew 6 percent year-on-year to Tk 24,265 crore as banks continued supporting export-oriented manufacturing and global value chains.

A notable increase was recorded in agriculture, fishing and forestry, where lending more than doubled to Tk 1,668 crore, although these sectors still represent a small portion of the total portfolio.

As a result, the share of foreign banks in total banking sector credit declined to 2.6 percent at the end of 2025 from 3 percent a year earlier, indicating reduced participation in domestic lending activities, the BB said.

The decline in lending came as the sector faced pressure on asset quality, reflecting a rise in bad loans across the banking sector in recent years.

While overall non-performing loans (NPLs) as a share of total outstanding loans exceeded 30 percent at the end of last year, the NPL ratio of foreign banks rose to 5.9 percent in December 2025 from 4.9 percent a year earlier.

EXPORTS ANCHOR FOREIGN BANKS

Despite the decline in loans and advances, foreign banks handled higher volumes of exports and imports for local businesses and manufacturers.

The BB said the share of foreign banks in Bangladesh’s export receipts remained stable at around 19 percent at the end of 2025, while their import share stayed at 13 percent.

Their activities were concentrated in textiles and raw materials supporting export-oriented manufacturing, as well as capital machinery and intermediate goods, highlighting their role in industrial upgrading.

“This asymmetric role -- higher export than import shares -- implies a net positive contribution to foreign exchange inflows,” the central bank said.

The report said foreign banks maintained a stable deposit base and relatively sound asset quality during 2025. They held around 4.2-4.6 percent of total banking sector deposits, exceeding their credit share, indicating a net liquidity surplus and a conservative intermediation stance.

“This scenario reflects that foreign banks function as liquidity anchors rather than aggressive credit creators, contributing to system stability during volatile periods,” it said.PROFITABILITY AND OUTWARD REMITTANCES

The BB said foreign banks’ net profit increased to Tk 3,739 crore in July-December 2025 from Tk 3,558 crore a year ago, partly due to lower tax expenses.

The foreign lenders sent Tk 1,315 crore in profits as outward remittances during July-December 2025, more than double the Tk 577 crore remitted during the same period a year ago.

Reinvested earnings by the banks in Bangladesh fell by more than half to Tk 2,096 crore in the second half of 2025 from Tk 4,595 crore a year earlier.

The central bank said foreign banks in Bangladesh demonstrated considerable financial resilience during 2025, supported by strong capital adequacy, abundant liquidity, sound profitability and relatively low levels of non-performing loans.

It said the increase in foreign assets and continued profitability indicate sustained confidence in their business models.

“Nevertheless, the moderation in credit growth and declining provision coverage warrant continued monitoring to ensure that foreign banks remain adequately positioned to support productive economic activities while preserving their traditionally strong financial soundness and risk management standards.”

Factory owners are paying a premium of Tk10 per litre for diesel to keep their generators running, a costly measure that reflects how Bangladesh's energy crisis has deepened from a gas shortage into a full-blown power supply crisis.

The extra fuel cost is only part of the pain. Frequent power outages, coupled with years of low gas pressure, are disrupting production at factories across the country's major industrial belts, forcing manufacturers to spend more just to meet export deadlines.

"We have been suffering from the gas crisis for years. Now we are not getting electricity either. We are buying diesel from filling stations by paying Tk10 extra per litre just to keep our generators running," an entrepreneur who owns export-oriented garment and textile factories in Ashulia told The Business Standard.

"I can't run my factories anymore. Please save us!" he said.

A spinning mill in Araihazar, Narayanganj, with 3 lakh spindles has almost ceased operations because of the gas shortage. The owner, who requested anonymity, said the factory's daily gas bill under normal circumstances was around Tk20 lakh, but it is now spending about Tk90 lakh a day on diesel.

Their frustration is no longer an isolated case. It has become the new reality for manufacturers in Ashulia, Gazipur, Savar, Narayanganj and other industrial hubs, where unreliable gas and electricity supplies are forcing factories to operate far below capacity and driving up production costs. Only a handful of factories, mainly in the Sylhet region where gas supply remains comparatively stable, have largely escaped the crisis.

Industry leaders say the worsening energy shortage is eroding Bangladesh's competitiveness at a time when exporters are already struggling with weak global demand, rising costs, and growing competition from rival manufacturing countries.

The Bangladesh Textile Mills Association raised the issue during a meeting with Prime Minister Tarique Rahman yesterday, seeking immediate intervention. According to the association, the prime minister assured industry leaders that the government would take steps to address the crisis, with another meeting scheduled next week.

Business leaders also said the PM had told entrepreneurs at a meeting last week that resolving the broader energy crisis could take about one year.

Production levels across major gas-reliant industries have plummeted to 20%-50% of capacity, down from around 70% a month ago, with several units shutting down entirely. The crisis has been compounded by severe electricity load-shedding of 10 to 14 hours daily in industrial zones powered by the Rural Electrification Board.

The widespread disruption has raised fears among factory owners over their ability to pay workers' wages, clear utility bills, and service bank loans.

Orders shifting feared

Foreign buyers are closely monitoring the supply crunch, inquiring whether local suppliers can meet delivery deadlines. Industry leaders report that some international buyers have already begun scaling back orders or shifting them away from Bangladesh.

Showkat Aziz Russell, president of the Bangladesh Textile Mills Association, confirmed that orders are shifting, warning that retrieving lost clients in the near future will prove challenging.

A senior official from the association noted that at least one European buyer has explicitly cited the gas crisis when transferring a portion of its order volume.

Industry leaders warn that Bangladesh could risk losing up to half its export orders if normal gas supply is not restored swiftly.

Textile mills bear the brunt

The textile sector, one of the country's largest gas consumers with investments estimated at $23 billion, has been among the hardest hit.

Mohammad Mosharaf Hossain, managing director of Mosharaf Composite Textile Mills Limited, said lower gas pressure meant the factory was managing to operate at only around 60% capacity despite relying on alternative energy sources.

"If this situation continues, I do not know how we will pay workers' wages, bank loan instalments and gas and electricity bills from next month," he said.

Mosharaf said the company had so far been using funds from other businesses within the group to meet operating expenses, but questioned how long that could continue.

Even after combining electricity supplied by the Rural Electrification Board with solar power and diesel generation, the mill is operating at only about 20% of capacity, said the spinning mill owner in Araihazar.

He said the factory is losing around Tk1.5 crore a day because of the gas shortage and warned that prolonged disruption could force the sale of personal assets to keep paying workers and meeting other obligations.

Khorshed Alam, chairman of Little Star Spinning Mills Limited in Ashulia, Savar, said his factory is receiving only 0.5 to 1.5 PSI of gas despite having an approved pressure of 10 PSI.

Even after supplementing production with uninterrupted power supply systems, electricity and solar power, the factory is operating at only about 25% of capacity.

"We are worried about how we will pay workers' wages. Ultimately, it may not be possible to keep the factory running," he said.

Other industries under pressure

The crisis has spread well beyond the textile sector. According to the Bangladesh Ceramic Manufacturers and Exporters Association, 25 of its 70 member factories have already suspended production because of inadequate gas supply.

Moynul Islam, chairman of Monno Ceramic Industries Limited and president of the association, said the industry had reached a critical stage. "We are now in a state of uncertainty."

The leather sector is facing similar difficulties. Mohammad Imam Hossain, managing director of ABS Tannery and an executive member of the Bangladesh Tanners Association, said his factory's monthly production capacity of 7-8 lakh square feet had fallen to well below 1.5 lakh square feet despite arranging gas from external sources.

He said export orders were being delayed, while rising overhead costs and shipment disruptions were making it increasingly difficult to pay wages and repay bank loans.

Mizanur Rahman, general secretary of the Bangladesh Tanners Association, said many tanneries were receiving only 10% to 20% of their required gas supply, while some were receiving none at all.

"If the situation persists, paying workers' wages and servicing bank loans will become extremely difficult," he said.

The steel industry is also under strain. According to industry representatives, Bangladesh has around 40 automated steel mills, most of which rely on captive power generation. Large factories using high-pressure gas lines have experienced production disruptions of 30% to 40%, while many smaller plants connected to lower-pressure lines have been left with almost no gas supply.

Sumon Chowdhury, general secretary of the Bangladesh Steel Manufacturers' Association, said steel production machinery must operate continuously and requires more than two hours to restart after a shutdown.

He said many factories were now forced to suspend production for about 12 hours each day and warned that a further two weeks of disruption could force numerous mills to close.

The pharmaceutical industry is also feeling the impact. Sector insiders said most of the country's nearly 300 pharmaceutical factories depend on gas-fired captive power generation and have been forced to halt production for between five and seven hours a day.

Zakir Hossain, secretary of the Bangladesh Association of Pharmaceutical Industries, said the sector had been experiencing gas shortages since 2022.

He said captive power plants generally require gas pressure above 10 PSI to operate efficiently, but pressure had remained well below that level in recent days. At the same time, increased load shedding outside Dhaka was disrupting production for around six hours a day.

"The biggest challenge is API production, where machinery must remain in continuous operation," he said.

Govt expects gradual improvement

The government has expressed optimism that the gas supply situation will begin to improve in the coming days.

State Minister for Power, Energy and Mineral Resources Anindya Islam Amit said earlier this week that gas supply was expected to improve from next week, although restoring normal supply could take another week.

Industry owners and energy experts, however, believe a lasting solution remains some way off.

They argue that the proposed floating storage and regasification unit (FSRU) will take much longer to become operational than official estimates suggest, leaving industries vulnerable to prolonged supply shortages unless alternative gas sources are secured.

The current crisis has been aggravated by the shutdown of the floating LNG terminal operated by Excelerate Energy, with industry representatives saying there is no immediate remedy until the terminal resumes operations.

To strengthen future energy security, the government plans to install Bangladesh's third FSRU and develop a land-based LNG terminal at Matarbari in Cox's Bazar.

The Cabinet Committee on Government Purchase on Tuesday approved a proposal to establish a new FSRU in Kutubjom, Moheshkhali, under a government-to-government arrangement with China National Energy Engineering and Construction Co.

According to the Energy Division, the terminal is expected to be completed within 18 months of receiving final approval.

Experts question timeline

Energy expert M Tamim questioned the government's implementation schedule, saying completing an FSRU within 18 months would be extremely challenging under current conditions.

He said converting an LNG carrier into an FSRU alone generally requires at least two years, while developing an entirely new facility could take a minimum of three years.

According to Tamim, the government's target would only be achievable if the Chinese contractor already had LNG storage facilities and other critical components ready for immediate installation.

Apparel exporters seek temporary relief

As the crisis intensifies, the country's two leading apparel trade bodies have sought temporary measures to keep export production running.

In separate letters sent on Tuesday, the Bangladesh Garment Manufacturers and Exporters Association and the Bangladesh Knitwear Manufacturers and Exporters Association urged the government to allow export-oriented factories to procure compressed natural gas in cylinders from CNG filling stations until normal pipeline supply resumes.

The request followed a directive from Titas Gas Transmission and Distribution Company prohibiting CNG filling stations from selling gas into open cylinders or gas cascade cylinders that are not mounted on authorised vehicles, citing safety concerns and legal restrictions.

More than half of Bangladesh’s rivers and canals have lost their functionality, forcing around 77 percent of the country’s freight transport onto roads, making logistics significantly more expensive and environmentally damaging, according to the Dhaka Chamber of Commerce and Industry (DCCI).

Historically, the country’s canal network spanned 24,000 kilometres. Now, more than 55 percent of it is silted or encroached.

The condition of more than 1,415 rivers across Bangladesh has become “extremely alarming” following decades of neglect, unplanned encroachment and siltation, DCCI President Taskeen Ahmed said.

He presented the keynote paper at a seminar titled “Reviving Bangladesh’s Circular Waterways and the Role of Canal Excavation Programmes in Expanding Inland Water Trade” on Wednesday.

Transporting goods by waterways costs 55-60 percent less than by road and is four to six times more fuel-efficient, reducing business operating costs substantially, said DCCI President Taskeen Ahmed

Water Resources Minister Shahid Uddin Chowdhury Annie said Dhaka’s canals, once the city’s economic lifelines, have become largely unusable because of encroachment and pollution.

To restore waterways, the government has launched a programme to excavate 20,000 kilometres of canals nationwide, he said, adding that ensuring interconnectivity among the canals will be crucial to maximising the programme’s benefits.

The minister said committees comprising local government representatives and relevant agencies have been formed to ensure the successful implementation and long-term conservation of the canal excavation initiative.

He pledged stricter action against industrial waste dumping into rivers, adding that the government is working to provide technological support so that small industries can install Effluent Treatment Plants (ETPs) at affordable costs.

The nationwide canal excavation programme holds significant promise, Taskeen said. If implemented successfully, it would contribute to flood control, improved irrigation, the revival of river-based rural economies and stronger economic growth.

He also noted that transporting goods by waterways costs 55 to 60 percent less than by road and is four to six times more fuel-efficient, reducing business operating costs substantially.

“There is no alternative to developing an integrated transportation network based on the 112-kilometre waterway connecting the four rivers surrounding Dhaka,” he said.

He called for effective planning and implementation to unlock the economic potential of inland waterways, stronger coordination among government agencies and greater private-sector investment in the sector.

During the panel discussion, Architect Iqbal Habib, co-founder of Vitti Sthapati Brindo Ltd and vice president of the Safety Awareness Foundation (SAF), stressed the need to ensure uninterrupted river flow by avoiding the construction of low-height culverts and bridges across waterways.

Noting that nearly 15 government agencies are involved in river management without a single lead authority, he called for establishing a dedicated institution with clear authority and accountability, alongside strengthening the National River Conservation Commission.

Mohammed Abed Hossain, professor at the Institute of Water and Flood Management at BUET, said implementation of inland waterway projects is often delayed by overlapping institutional responsibilities.

He stressed the need to clearly define the mandates of relevant agencies and effectively implement a sound waste management policy for river conservation.

Md Taneem Sarwar, senior specialist and head (Design) at the Institute of Water Modelling (IWM), said rivers are becoming narrower due to encroachment while simultaneously losing navigability because of sedimentation.

He emphasised coordinated action and the use of Geographic Information Systems (GIS) and other modern technologies to demarcate river boundaries and monitor changes in river courses.

Md Motaleb Hossain Sarker, acting executive director of the Center for Environmental and Geographic Information Services (CEGIS), proposed establishing an effective river management commission to oversee river-related activities.

He also recommended attracting investment under the public-private partnership (PPP) model to modernise river-based infrastructure.

Mohammad Alamgir, principal scientific officer (Environment, Forest and Fisheries) at the Water Resources Planning Organization (WARPO), said integrated planning and effective monitoring of river management infrastructure remain inadequate and called for greater attention to the issue.