SK Trims & Industries, an accessories manufacturer, has reported a narrower net loss for the first quarter of fiscal 2025-26, driven by lower manufacturing and operating expenses compared with the same period a year earlier.

According to a disclosure published today (14 July), the company's loss per share fell to Tk0.33 in the July-September quarter from Tk0.53 in the corresponding period of the previous fiscal year.

The company published its quarterly financials today, around six months after the quarter ended.

Explaining the improved performance, SK Trims said its negative earnings per share (EPS) improved due to lower manufacturing and operating expenses, which reduced its net loss after tax compared with the same period a year earlier.

Net operating cash flow per share improved to Tk0.28 from negative Tk0.02 in the July-September quarter of the previous fiscal year, mainly due to higher cash collections from turnover during the period, the company said.

However, its net asset value per share stood at Tk11.93 as of 30 September 2025, which was Tk14.96 as of 30 September 2024.

Following the disclosure, SK Trims shares surged by 5.97% today to Tk14.20 each at the Dhaka Stock Exchange.

According to its auditor, SK Trims incurred a loss of Tk28.17 crore and its revenue declined to Tk26.43 crore.

The auditor said a primary driver of the operational disruption was a significant delay in the renewal of the company's bond license, which stemmed from the internal administrative misstatement and procedural oversights.

The government is operating “like the private sector, seven days a week” to clear red tape and achieve a $1 trillion economy by 2034, Finance Minister Amir Khosru Mahmud Chowdhury said yesterday.

Highlighting the massive scale of regulatory reforms, the minister noted that his recent budget speech required four and a half pages just to list the deregulation measures being introduced.

To prevent these changes from being stalled by bureaucratic bottlenecks, the government is taking direct enforcement actions, he said.

The minister made the comments while speaking as the chief guest at the formal inauguration of RSGT Bangladesh, held at the Sheraton Dhaka in Banani.

The Red Sea Gateway Terminal (RSGT) Bangladesh operates the Patenga Container Terminal at Chattogram port.

“I am constituting a task force to oversee the deregulation we have made, so nobody stands in the way,” the finance minister said.

“A website will be launched where anyone facing problems with the new deregulated framework can lodge a complaint, and we will take care of it. There will be no compromise.”

The entry of Saudi Arabia’s RSGT into Chattogram is seen as a vital step toward fixing the long-standing logistics issues that plague the local business community -- primarily vessel turnaround and delivery times, he said.

“Every hour and every day costs money in business,” the minister noted, stressing that port efficiency is the backbone of the country’s economic growth.

The goal is to establish Chattogram as the primary logistics hub not just for Bangladesh, but for the entire South Asian region, he said.

Reflecting on the historical relationship between Dhaka and Riyadh, the minister said the deepening Saudi-Bangladesh ties began with President Ziaur Rahman’s close relationship with the Saudi royal family.

The relationship expanded significantly under Begum Khaleda Zia, paving the way for over 4 million Bangladeshi expatriates currently working in Saudi Arabia.

The minister welcomed RSGT’s presence as a natural continuation of this historic bond and urged the Saudi firm to look beyond the port sector for future investments, promising the government’s full support.

Aamer Abdullah Zainal Alireza, executive chairman of RSGT, and Erwin Haaze, CEO of RSGT Bangladesh, also spoke at the event.

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

The benchmark DSEX index of the Dhaka Stock Exchange gained 44.69 points, or 0.76 per cent, to close at 5,911.24.

The day's index was the highest in 23 months, since August 14, 2024, when the index stood at Tk 5953.

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

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

The DS30 index, comprising leading blue-chip companies, increased 24 points to 2,227, while the DSES index, which tracks Shariah-based stocks, increased 10.24 points to 1,207.

Market participation improved on Monday, with turnover on the Dhaka Stock Exchange (DSE) rising to Tk 16.51 billion from Tk 14.19 billion in the previous session.

Gainers outnumbered Losers on the DSE floor. Of the 393 issues traded, 199 closed higher and 137 ended lower, while 57 remained unchanged.

The Chittagong Stock Exchange also ended higher, with its All Shares Price Index (CASPI) gaining 67.5 points to 15,778 while the Selective Categories Index (CSCX) rose 38.6 points to 9,673.

China's exports surged more than expected last month, with official data on Tuesday showing that the global AI boom helped fuel demand for chips and computing equipment from the world's second-largest economy.

The figures came despite global trade disruptions caused by the US-Israeli war on Iran, providing a much-needed boost to China, which is increasingly reliant on exports to fuel growth.
Overseas shipments rose 27.0 percent year-on-year, beating the 19.0 percent forecast in a Bloomberg survey of economists.The General Administration of Customs data also showed imports soared 36.0 percent, easily outstripping the 26.1 percent estimated in the Bloomberg survey, and well up from the 27.4 percent jump seen in May."Trade values took another big leg up in June. This predominantly reflects the recent surge in semiconductor prices on the back of the AI boom," Julian Evans-Pritchard, of Capital Economics, said in a note.The value of China's semiconductor exports more than doubled from the same month a year ago and rose $2.7 billion from May, while data processing equipment shipments also rose 53.1 percent from a year earlier.

But that expansion was "entirely a price story caused by the ongoing shortage of memory chips", Evans-Pritchard said, noting that the volume of semiconductor exports actually fell year-on-year in June.

"Surging semiconductor prices are playing a key role in pushing up import values," rather than domestic consumption surging, he said.

Automobile exports jumped 69.6 percent on-year, reflecting strong demand for Chinese electric vehicles, he added.

Shipments to the United States rose 13.9 percent to $43.5 billion, putting China's trade surplus with its superpower rival at $28.9 billion.

Ties between Washington and Beijing have stabilised since US President Donald Trump visited Beijing in May, but the persistent trade imbalance remains a source of friction between the two.

China is also locked in a simmering trade feud with the European Union, with which it recorded a trade surplus of $32.9 billion in June, a rise from $30.7 billion in May.

June's data "showcases the competitiveness and resilience of China's manufacturing sector", Zhang Zhiwei, of Pinpoint Asset Management, wrote in a note.

"It also put further pressure on the trade tension between China and its trading partners, Europe in particular," he said.

The volume of rare earths exports sank 34 percent last month and 6.4 percent on-year in the first six months of the year as Beijing tightened restrictions on the critical elements.

China accounts for around two-thirds of the total global production of the minerals, which are used to make everything from smartphones to missiles, and has wielded its dominance in the sector as a weapon in trade wars with the West.

China's overall trade surplus hit $126 billion last month, up from $105 billion in May, a gap that is worrying for European economies and other governments.

Stakeholders and policy experts have urged the government to make the blue economy a national priority, calling for stronger governance, a comprehensive legal framework and greater inter-ministerial coordination to unlock Bangladesh's vast ocean-based economic potential.

The call came at a policy dialogue titled "National Stakeholder Consultation on Blue Economy Governance in Bangladesh", held yesterday (13 July) at the Doyel Seminar Hall of SIMEC Institute of Technology in Uttara.

The consultation was organised by the Blue Economy Think Tank and chaired by Prof S M Shameem Reza of the Department of Mass Communication and Journalism at the University of Dhaka.

Speakers said Bangladesh's marine resources present significant opportunities to boost sustainable development and economic growth, provided the sector is supported by effective policies, institutional collaboration and scientific research.

They called on the government to formulate a comprehensive national strategy and legal framework for the exploration, utilisation and sustainable management of marine resources.

Participants also stressed the need to strengthen coordination among ministries and foster closer collaboration between government agencies, research institutions and other stakeholders involved in the sector.

The discussants said policymakers and researchers with specialised expertise in the blue economy should play a leading role in designing and implementing policies.

They also highlighted the importance of public-private partnerships in attracting foreign investment and accelerating sustainable economic development through the responsible use of marine resources.

Among those attending the consultation were Bangladesh Investment Development Authority (BIDA) Director General (Investment Promotion) Jibon Krishna Saha Roy, Prime Bank Deputy Head of Sustainable Finance Fareba Naz Shaule, Executive Officer Sharmin Akter Shetu, SIMEC Group Executive Director Foara Yasmin, BRAC University Assistant Professor Ratan Kumar Roy, Port City University Senior Lecturer Md Nurul Amin, Maasranga Television Special Correspondent Noor-un-Nahar Weely, Australia Awards 2024 alumni, and faculty members and researchers from public and private universities.

The consultation was organised under the Australia Awards - Driving Change: Alumni Grants for Innovation initiative, which aims to promote knowledge-sharing on the blue economy and strengthen stakeholders' capacity to support sustainable ocean governance in Bangladesh.

Advanced Chemical Industries (ACI) PLC has decided to invest Tk700 crore in its subsidiary, ACI Logistics Limited, which operates under the retail brand Shwapno.

The investment decision was approved at a meeting held today (14 July), according to company sources.

As part of the investment, ACI will subscribe to 70 lakh convertible preference shares of ACI Logistics, each with a face value of Tk1,000. The investment is expected to be completed by 15 October of the current year.
The move is expected to strengthen ACI Logistics' capital base and support the continued expansion of its retail operations under the Shwapno brand, according to the company's statement.

RSGT Bangladesh, the country's first international container terminal operator, on Tuesday officially launched full-scale operations at the Patenga Container Terminal after investing $170 million over the past two years, aiming to enhance cargo handling capacity, reduce vessel turnaround time and strengthen Bangladesh's maritime logistics.

The inauguration ceremony in Dhaka was attended by Finance Minister Amir Khasru Mahmud Chowdhury as chief guest, alongside senior officials from the governments of Bangladesh and Saudi Arabia, underscoring growing bilateral cooperation in trade, logistics and investment.

RSGT Bangladesh said it has completed the deployment of modern container handling equipment, digital systems and operational infrastructure, marking the completion of its transformation of the Patenga Container Terminal under a 22-year concession agreement with the Chittagong Port Authority (CPA).
Since taking over operations in 2024, the company has invested in expanding the terminal's capacity and modernising its facilities.

The company said it has committed $170 million to develop the terminal into an international-standard facility.

Among the major investments are $30 million for four ship-to-shore (STS) cranes and $25 million for 14 hybrid rubber-tyred gantry (RTG) cranes. It also invested $3 million in a container scanner while expanding container yards, warehouse facilities and digital operations.

According to the company, the terminal now operates with a full fleet of modern container handling equipment and internationally trained personnel.

RSGT Bangladesh began commercial operations at the terminal in June 2024 by handling its first commercial vessel. It later introduced full import and export container operations, implemented digital process automation through an e-portal and obtained Green Terminal Certification from Bureau Veritas.

The company said the terminal has grown from handling only a few thousand containers during its initial months to becoming a modern international gateway capable of supporting Bangladesh's expanding external trade.

Speaking at the event, company officials thanked the Chittagong Port Authority for its support throughout the project's implementation, describing the development as an example of successful public-private partnership in port infrastructure.

They said the modernisation of the terminal is expected to improve operational efficiency, shorten vessel turnaround times, increase cargo handling capacity and strengthen Bangladesh's position as a regional trade and logistics hub.

The inauguration was attended by senior representatives from the Saudi Ministry of Investment and the Ministry of Transport and Logistics Services, the chairman of the Chittagong Port Authority, the Saudi ambassador to Bangladesh, executives from leading global shipping lines, including Maersk, CMA CGM, MSC and PIL, as well as representatives from BGMEA, BKMEA, BIDA, ICD operators and shipping and clearing agents' associations.

RSGT Bangladesh, a subsidiary of Saudi Arabia-based Red Sea Gateway Terminal Group, is operating the Patenga Container Terminal under a 22-year concession agreement with the Chittagong Port Authority. The company said it will continue investing in technology, infrastructure and workforce development to support Bangladesh's growing trade and logistics sector.

Speaking as the chief guest, Amir Khasru Mahmud Chwdhury said the entry of Saudi Arabia's RSGT into Chattogram is seen as a vital step toward fixing the long-standing logistics issues that plague the local business community -- primarily vessel turnaround and delivery times.

"Every hour and every day costs money in business," the minister noted, stressing that port efficiency is the backbone of the country's economic growth.

The goal is to establish Chattogram as the primary logistics hub not just for Bangladesh, but for the entire South Asian region, he said.

Reflecting on the historical relationship between Dhaka and Riyadh, the minister said the deepening Saudi-Bangladesh ties began with former president Ziaur Rahman's close relationship with the Saudi royal family.

The relationship expanded significantly under Khaleda Zia, paving the way for over 4 million Bangladeshi expatriates currently working in Saudi Arabia.

The minister welcomed RSGT's presence as a natural continuation of this historic bond and urged the Saudi firm to look beyond the port sector for future investments, promising the government's full support.

Aamer Abdullah Zainal Alireza, executive chairman of RSGT, and Erwin Haaze, CEO of RSGT Bangladesh, also spoke at the event.

The visiting International Monetary Fund mission yesterday (14 July) held a meeting with the Economic Relations Division (ERD) to assess the country's external debt risks.

During the meeting at the Secretariat, the IMF sought detailed information on Bangladesh's cost of debt, availability of concessional financing, growing reliance on market-based floating-rate loans, average borrowing costs, and external debt-servicing obligations.

According to ERD officials who attended the meeting, the multilateral lender also sought an explanation for the recent decline in external loan disbursements to Bangladesh. In addition, the mission asked why budget support from development partners has fallen in recent years.
The officials said they told the mission that Bangladesh is transitioning from a "low-risk stabilisation phase" to a "medium-risk acceleration phase" in terms of external debt risk.

They said external borrowing has become increasingly expensive as concessional financing dwindles. Bilateral lenders, particularly Japan, are shifting towards less concessional loans, while the share of market-based floating-rate borrowing from multilateral lenders such as the World Bank and the ADB continues to rise.

Floating-rate loans accounted for about 30% of Bangladesh's external debt portfolio in FY25, and officials expect that share to increase further in the recently concluded fiscal year.

Bangladesh is entering a period of intense fiscal pressure, with external debt servicing set to surge sharply over the next five years, exposing the limits of its already weak revenue base, officials told the IMF.

According to an ERD report, the country will need to pay nearly $26 billion in external debt servicing between the current fiscal year and FY30.

In the 54 years since independence in 1971, Bangladesh has paid around $40 billion in debt servicing. Now, nearly two-thirds of that amount will be repaid within just five years.

Review part of broader macroeconomic assessment

ERD officials said the IMF's review forms part of its broader assessment of Bangladesh's macroeconomic conditions and external debt sustainability.

As part of the exercise, the mission sought an update on the country's external borrowing position and asked what steps the government is taking to accelerate the disbursement of committed foreign loans that remain stuck in the pipeline.

Officials said they informed the IMF mission that the government is reviewing many ongoing projects inherited from the previous administration and is taking a cautious approach to approving new externally financed projects.

They added that development activities slowed during the interim government's tenure, contributing to weaker foreign loan disbursements.

According to ERD data, Bangladesh currently has $41.73 billion in undisbursed foreign loans in the pipeline. External loan disbursements totalled $4.577 billion in July-May, down 18.3% from $5.488 billion in the corresponding period a year earlier.

For FY25, total external loan disbursements stood at $9.26 billion, compared with $10.25 billion in the previous fiscal year, ERD data shows.

Budget support

Officials said the IMF also sought an explanation for recent trends in budget support.

According to the ERD, Bangladesh received a record $3.44 billion in budget support in FY25, but the amount fell sharply to $1.56 billion in FY26. Officials expect budget support to decline further in the current fiscal year.

They said budget support increased in the aftermath of the Covid-19 pandemic and the Russia-Ukraine war to help Bangladesh cope with mounting economic pressures.

More recently, heightened geopolitical tensions stemming from the Israel-US conflict with Iran have further increased the need for external financing.

Bangladesh exited an existing $5.5 billion IMF loan programme, agreed in 2023 under the previous government, and is now seeking a new three-year package worth $4-4.5 billion with revised reform conditions.

The high-level IMF delegation arrived in Dhaka on 12 July for a five-day fact-finding mission to assess the feasibility of the fresh loan package.

Bangladesh has called for stronger United Nations support to ensure a sustainable graduation from the Least Developed Country (LDC) category, implement the Sustainable Development Goals (SDGs), and advance the government's reform agenda.

Prime Minister's Finance and Planning Adviser Rashed Al Mahmud Titumir made the appeal during separate meetings at the UN Headquarters in New York with UN Under-Secretary-General Li Junhua, Executive Secretary of the UN Economic and Social Commission for Asia and the Pacific (UNESCAP) Armida Salsiah Alisjahbana, and UNDP Regional Director Kanni Wignaraja.
During the meetings, Titumir reiterated Bangladesh's request for a three-year extension of its LDC graduation preparatory period. He also outlined the government's "3R" strategy – Recovery, Restoration and Reconstruction for Acceleration – to restore macroeconomic stability and implement institutional reforms following the public mandate expected from the February 2026 national election.

UN representatives reaffirmed their continued support for Bangladesh's LDC graduation process, governance reforms, climate resilience initiatives and expansion of social protection programmes.

Photo: Courtesy
Photo: Courtesy

In his meeting with Li Junhua, Titumir formally presented Bangladesh's request for the extension, saying additional time is needed to maintain macroeconomic stability, effectively implement the Smooth Transition Strategy and ensure a sustainable and irreversible graduation from LDC status.

Li assured Bangladesh of the UN Department of Economic and Social Affairs' continued support and pledged to work closely with the country to facilitate a successful transition.

Bangladesh seeks stronger global support to bridge $132b SDG financing gap

Separately, speaking at the General Debate of the High-Level Political Forum on Sustainable Development (HLPF) 2026 at the UN Headquarters on Monday, Bangladesh's Country Statement highlighted the need for stronger international support, including grants, concessional financing and technology transfer, to bridge an annual SDG financing gap of more than $132 billion and accelerate progress towards the 2030 Agenda.

The statement said Bangladesh continues to face significant financial constraints in achieving the SDGs, particularly in clean energy, economic growth and infrastructure. It also noted a 37% funding shortfall for supporting around 1.3 million Rohingya refugees, with an immediate financing gap of approximately $261 million.

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

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

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

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

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

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

Combustion-engine heritage in EV-heavy market

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

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

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

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

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

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

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

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

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

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

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

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

'A concern from two or three years ago'

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bangladesh stands at a defining moment in its economic journey. Having grown into a $510 billion economy, the country now aims to become a $1 trillion economy by 2034. The national budget theme, Economic Democratisation and Decentralisation: Bangladesh in the Trillion-Dollar Economic March, reflects both the scale of that ambition and the need to ensure growth creates opportunities across the country. Achieving this vision will depend on three closely linked priorities: attracting more foreign direct investment (FDI), accelerating digital transformation and deepening financial inclusion.

Bangladesh’s remarkable progress has been built on manufacturing, exports, infrastructure and the resilience of its people. The next phase of growth will increasingly be driven by digital infrastructure, AI, cloud technologies and innovation. Around the world, countries that have reached higher-income status have paired physical infrastructure with strong digital ecosystems. Today, digital connectivity is as important as roads, ports and power in driving competitiveness.

FDI plays a vital role in this transformation. Beyond capital, it brings technology, innovation, international expertise and access to global markets. These are essential for raising productivity, creating skilled jobs and supporting sustainable growth. Bangladesh’s recent investment performance offers encouraging signs. After slowing between 2022 and 2024 amid global uncertainty and foreign exchange pressures, net FDI rebounded by 39.36 percent in 2025 to $1.77 billion. The next challenge is attracting higher-value investment into sectors that will shape the future economy, including AI, cloud computing and digital services. One promising example is the proposed “Invest in Bangladesh NOW” initiative discussed between Banglalink’s parent company, VEON, and the prime minister. The initiative aims to attract $1 billion in FDI, anchored by VEON’s initial $250 million commitment. It would focus on digital banking, AI, youth skills and connectivity while using VEON’s global network to attract further investment.

Investment also brings valuable expertise. Around the world, digital financial services have transformed financial inclusion. In Kenya, M-Pesa has enabled millions to access payments, savings and credit. In India, the Unified Payments Interface has made secure, low-cost digital payments widely accessible. In Pakistan, JazzCash has expanded access to financial services and supported the shift towards a less cash-based economy. Bangladesh can build on these examples by expanding digital banking, microfinance and microinsurance. Economic democratisation also means ensuring digital opportunities reach every part of Bangladesh. A young entrepreneur in Kurigram, a farmer in Bhola or a student in Bandarban should have the same opportunities as someone in Dhaka. Expanding digital infrastructure, including next-generation technologies such as satellite-enabled direct-to-cell connectivity, can help bridge the digital divide.

Banglalink’s experience over the past two decades shows how sustained investment in connectivity can narrow that divide. As part of the VEON Group, the company continues to expand digital access while introducing services that support education, healthcare, commerce, public services, entertainment and AI-enabled solutions. Drawing on VEON’s fintech expertise, Banglalink also aims to expand digital banking, microfinance and microinsurance, helping more Bangladeshis participate in the formal economy. Together, digital connectivity and financial inclusion can boost productivity and support inclusive growth.

Bangladesh’s greatest competitive advantage remains its people. With a workforce of more than 77 million, the country has the potential to become a leading digital economy. Realising that potential will require continued investment in digital skills, AI and innovation, backed by predictable policies, transparent regulation and close collaboration between government and the private sector. Bangladesh has consistently shown its ability to exceed expectations. Reaching a trillion-dollar economy will require greater investment, world-class digital infrastructure, deeper financial inclusion, skilled workers and strong public-private partnerships. If these priorities advance together, Bangladesh can strengthen its global competitiveness while creating broader prosperity and a better quality of life for all.

The telecom regulator has upheld a Tk 3 crore administrative fine on Summit Communications Ltd, the country’s largest telecom infrastructure operator, after concluding it engaged in discriminatory bandwidth pricing.

At a recent meeting, the Bangladesh Telecommunication Regulatory Commission (BTRC) has decided to issue a formal notice instructing Summit to deposit the penalty with the regulator’s Finance, Accounts and Revenue Division within 10 working days.

The decisions were taken after reviewing a hearing report, following Summit’s challenge to the fine originally imposed last year, according to minutes of the meeting.

An investigation found that Summit charged its own International Internet Gateway (IIG) business an average of Tk 8 per Mbps for bandwidth, while charging other IIG operators an average of Tk 196.65 per Mbps, a gap officials described as “clearly discriminatory”.

The commission’s decision follows months of regulatory proceedings after inspections at Summit’s Dhaka headquarters and its Terrestrial Cable Landing Station (TCLS) in Benapole, Jashore.

As an International Terrestrial Cable (ITC) operator, Summit imports internet bandwidth from India and sells it to its affiliated IIG at prices significantly lower than competitors. As BTRC collects revenue sharing based on operators’ earnings, a lower transfer price reduces the government’s revenue.

Bangladesh’s international bandwidth flows from submarine cables or ITCs to IIGs, then through Nationwide Telecommunication Transmission Network (NTTN) operators to mobile operators and ISPs before reaching consumers. BTRC collects revenue sharing at multiple stages of this value chain.

Based on its inspection findings, the commission imposed the Tk 3 crore fine in early May last year. Summit, in response, sought a waiver and requested meetings with the regulator, prompting a series of review proceedings.

The commission first appointed a deputy director to review the appeal. After examining the case, the officer recommended upholding the penalty. Summit appealed again without paying, after which the commission appointed Commissioner (Engineering and Operations) Brig Gen (Retd) Iqbal Ahmed to conduct a fresh hearing involving both the inspection team and the company.

According to the commission’s meeting documents, the hearing officer found that Summit acknowledged the government was entitled to revenue sharing from bandwidth its ITC business supplied to its own IIG operation.

The company claimed it had been sharing such revenue based on verbal instructions from BTRC, but it could not produce any written directive or regulatory decision supporting the claim.

The hearing officer rejected Summit’s argument that no approved tariff existed for ITC operators at the time, finding the pricing violated Sections 29(Ga) and 50(1) of the Bangladesh Telecommunication Regulation Act, 2001, as well as relevant provisions of the Competition Act, 2012.

The report also noted that ITC licensing guidelines do not permit operators to provide services without commission-approved tariffs.

The report further found that although Summit operates both its ITC and IIG businesses under the same Tax Identification Number and Business Identification Number, it was still required to maintain separate revenue accounts, since the two licences carry different revenue-sharing obligations.

The hearing officer found no violations of the Infrastructure Sharing Guidelines during the inspection.

In his recommendations, Brig Gen (Retd) Iqbal endorsed the findings that Summit had breached telecommunications law, but noted the company had apologised for the violations and suggested the penalty could be reconsidered. After reviewing the report, however, the commission decided to reinstate the fine in full.

The commissioner confirmed to The Daily Star that the commission had decided to uphold the fine.

Summit Communications told this newspaper that as of yesterday, it has not yet received any official communication from BTRC regarding the reinstatement of the fine.

The company said it had clearly stated its grounds during the BTRC hearing -- that the penalty does not correctly reflect the applicable laws or factual circumstances.

“If BTRC nevertheless decides to uphold the penalty, we will pursue legal recourse available to us under the Bangladesh Telecommunication Act, 2001 and/or any applicable laws,” it said.

Noting that its ITC and IIG licences are held by the same legal entity, Summit argued that the provisioning of bandwidth between the two businesses is an internal allocation, not a commercial sale between independent entities.

“Till date BTRC has never approved any tariff or pricing methodology for bandwidth sale or allocation from ITC to IIG. In the absence of such regulatory guidance, Summit adopted the prevailing industry practice following the discussion and decision taken at the BTRC meeting held on 5 May 2021,” the company said.

The company also stated that it had reported the relevant information through the DIS Portal and paid applicable revenue sharing throughout.

“Summit acted on full transparency and after due consultation with BTRC,” it said, adding that when BTRC later took the position that such internal allocation should be based on market rate, the company complied immediately “to demonstrate our continued commitment to regulatory compliance.”

“In the absence of any BTRC approved tariff or prescribed pricing methodology for ITC to IIG bandwidth provisioning, we follow the prevailing industry practice,” it further said.

BTRC officials, speaking on condition of anonymity, said that although the ITC and IIG businesses are part of the same legal entity, they are required to hold separate licences for different services, each operating under a different regulatory framework.

“The so-called industry practice was improper. It has now been uncovered, and those involved have been penalised. No previous commissions had dared to investigate these practices before the fall of the previous government,” one official said.

Iran and the US have both announced rival blockades of the Strait of Hormuz once again, crippling an already fragile ceasefire deal.

This should alarm oil traders who had been pricing in a rapid return to normal. But markets appear sanguine – and that may be a miscalculation.

The global oil and gas market proved remarkably resilient during the 108-day conflict, thanks in large part to the ample global reserves present before the war began on February 28.

But the energy market is no longer protected by ample emergency stocks, so the margin for error has become a lot smaller.

President Donald Trump said on Monday that the US was reinstating its blockade of Iranian shipping in the Strait of Hormuz.

This followed Iran’s declaration over the weekend that it was closing the waterway amid fresh missile and drone attacks between the two sides.

This leaves the June 17 interim ceasefire on shaky ground.

Trump also said Washington would become the “guardian of the Hormuz Strait”, ensuring the shipping chokepoint – through which a fifth of global oil and liquefied natural gas supplies previously transited – remained open to all other vessels.

In turn, the US would be reimbursed at a rate of 20 percent, Trump added.

Meanwhile, Yemen’s Iran-aligned Houthis on Monday threatened to disrupt ships transiting the Red Sea to the Suez Canal.

This potentially opens a new front in the regional war which could challenge cargoes seeking to bypass the strait.

The oil market response to all this has been surprisingly subdued.

Global benchmark Brent crude futures have risen over 10 percent to above $80 a barrel since the latest round of tit-for-tat attacks erupted last Tuesday.

That rise may be significant, but prices remain well below the wartime peak of $118 reached in late March.

Investors appear to be discounting the chances of a return to full-scale war and a complete shutdown of oil and gas flows through Hormuz.

That is a reasonable assumption – but it is still a risky one.

Neither side appears eager to return to war. Iran has been severely weakened by months of US and Israeli bombardment and stands to receive a substantial economic windfall from the interim agreement.

This is due to promised sanctions relief, unfrozen funds and potential investment. A renewed conflict would put all that at risk.

Trump, meanwhile, is unlikely to welcome a surge in domestic gasoline prices during the peak summer driving season, especially in the months before the crucial midterm elections in November.

Trump’s proposal to impose a fee on Hormuz transits also appears highly fanciful. For decades, the US has championed freedom of navigation.

Any attempt to impose mandatory tolls on vessels merely passing through an international strait would face formidable legal challenges.

The UN shipping agency said as much on Monday: “There is no legal basis through which to introduce mandatory tolls simply to transit through a strait.”

Does this mean Iran and the US will refrain from implementing their respective blockades? Probably not.

Both sides likely believe short-term blockades will do little damage to their respective positions.

Tehran is betting that Trump will ultimately accept some form of Iranian oversight of traffic through Hormuz.

They expect him to tolerate fees on passing vessels because of the US president’s political vulnerabilities.

Trump, for his part, appears to believe that pressure on Iranian exports will force Tehran to abandon its claims over the waterway.

What’s more, Trump may have been lulled into complacency by the energy market’s remarkable resilience during the war.

He may also rely on the rapid bounce back to prewar prices after the announcement of the June deal.

But prolonging this standoff – let alone returning to a new intensive phase of fighting – comes at a much higher risk than it did a few months ago.

That’s because the world’s oil safety cushion has been dramatically depleted.

During the 4.5-month conflict, governments, refiners and traders released record volumes of crude and fuel from emergency reserves.

This helped offset the loss of around 13 million barrels per day (bpd) of Middle Eastern exports.

Those releases helped prevent the kind of price shock many analysts feared at the start of the war, but they came at a cost.

According to the International Energy Agency, observed global oil inventories fell by a cumulative 360 million barrels between March and May, equivalent to around 3.9 million bpd.

Onshore stocks continued to decline in June, dropping by a further 96 million barrels, or roughly 3.2 million bpd.

The erosion has been particularly striking in the US.

Having exported record volumes of crude and refined products during the conflict, US inventories have been drawn down to lows not seen in decades.

Total crude and refined product stocks are at their slimmest since 2003, while gasoline inventories are at their lowest level for this time of year since 2012.

This leaves an exceptionally thin buffer against supply disruptions. That vulnerability has not gone unnoticed in Washington.

Earlier this month, Vice President JD Vance argued that the US-Iran agreement would provide the world with time to rebuild depleted oil reserves before any potential resumption of hostilities.

Based on current inventory levels, the world needs a lot more time.

For now, then, the oil market is probably right to assume that neither Trump nor Iran’s hardline clerics are actively seeking another full-scale conflict in the Middle East.

The most likely outcome remains a face-saving compromise that allows each government to claim victory. But that does not mean the danger has passed.

Both sides are engaged in high-stakes brinkmanship, which often produces miscalculations.

A missile strike, a naval incident or an attempt to enforce rival claims over the strait could trigger an escalation neither side intends.

And unlike in February, when inventories were full and emergency reserves abundant, the global oil market has far less capacity to absorb another major shock.

That may prove to be the most important lesson investors are missing today.

The Bangladesh Securities and Exchange Commission (BSEC) has approved draft amendments to the Margin Rules, 2025, relaxing several restrictive provisions introduced last November to improve market liquidity and make margin lending more accessible.The proposed amendments, approved today (14 July), will be published in newspapers and on the commission's website for public opinion before being finalised.The existing rules, introduced under the previous commission led by Khondoker Rashed Maqsood by replacing the Margin Rules, 1999, drew strong criticism from brokers, lenders and investors.
Since taking office in June, the new commission led by Chairman Masud Khan has pledged to make the framework more market-friendly. BSEC spokesperson Abul Kalam said implementation of the rules exposed practical difficulties, prompting the proposed revisions.

In an interview with The Business Standard, Masud Khan said the current framework is overly restrictive and prevents excess liquidity in the banking sector from flowing into the capital market.

"BSEC will set broad risk parameters. Beyond that, brokers will have the flexibility to develop their own risk management frameworks and determine whom to lend to," he said.

Margin loans opened to all investors

The commission will remove restrictions on extending margin loans to students, homemakers and retired persons.

Under the current rules, only high-net-worth individuals within some of these groups could qualify under lenders' internal policies – a provision strongly opposed by market participants and challenged in court.

The amendment will allow lenders to provide margin financing to all investors based on their relationship with clients and internal risk assessment.

More stocks eligible for margin financing

The amendment will make all 'A' and 'B' category stocks eligible for margin loans by scrapping the existing requirement that 'B' category companies must pay at least a 5% dividend.

Securities listed on the SME, ATB and OTC platforms will remain ineligible.

Tk5 lakh investment requirement dropped

The regulator will abolish the requirement for investors to maintain an average investment of Tk5 lakh in listed shares over the previous year to qualify for margin loans. Instead, investors must maintain a minimum equity of Tk3 lakh.

"The one-year Tk5 lakh investment requirement will be withdrawn, but a Tk3 lakh minimum equity requirement has been added for prudent risk management. If someone invests Tk10,000 today and seeks a margin loan tomorrow, that would not be logical," Abul Kalam said.

Margin call threshold lowered

Under the current rules, lenders must issue a margin call when a portfolio's value falls below 75% and execute a forced sale when it drops below 50%.

The amendment lowers the margin call threshold to 70%, while the forced-sale threshold remains unchanged.

P/E restrictions relaxed

The proposed amendments retain the restriction on margin lending for stocks with a price-to-earnings (P/E) ratio above 30 but change how the ratio is calculated. Instead of using the cumulative earnings per share of the latest four quarters, the P/E ratio will now be based on annual audited financial statements.

The commission will also remove the rule linking margin financing to the market's overall P/E ratio. Currently, if the main board's market P/E exceeds 20, lenders cannot provide financing above a 1:0.5 equity-to-loan ratio.

Under the amendment, lenders will be able to extend financing of up to a 1:1 ratio based on mutual agreement with clients, regardless of the market P/E.

Higher lending limit for financiers

The commission also plans to raise the ceiling on margin lending by financiers from three times their core capital or net worth to five times their net worth, allowing brokers to extend significantly larger margin portfolios.

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

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

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

The facility will remain in place until December next year.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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