Bangladesh’s economic activity fell to a 23-month low in August, reversing July’s rebound, as exports weakened and energy disruptions weighed on manufacturing and services, according to the latest Purchasing Managers’ Index (PMI).

The headline Purchasing Managers’ Index (PMI) fell 7.9 points month-on-month to 49.9 in August, its weakest reading since September 2024.

The index, jointly developed by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB), last month dropped below the 50-point threshold that separates expansion from contraction.

The decline follows a sharp rise in July, when the index gained 4.9 points to 57.8 on a strong rebound in manufacturing alongside continued growth in agriculture and services.

Manufacturing had led July’s expansion, jumping 16.6 points to 65.4 – the strongest turnaround in the survey’s history. It reversed sharply in August, falling 18.0 points to 47.4.

New export orders, output, input purchases, imports and employment all fell back into contraction, while input prices continued to rise at a faster pace.

Services, which had expanded for 22 consecutive months, also slipped into contraction, falling 6.8 points to 49.2.

New business and business activity continued to grow but at slower rates, while employment contracted sharply.

In contrast, agriculture remained a bright spot, extending its expansion for the 12th straight month by rising 1.3 points to 56.5 in August from 55.2 in July.

Construction, which had stayed marginally in contraction throughout July at 49.3, moved into expansion in August, reaching 52.4.

Meanwhile, the Future Business Index, which had shown strong optimism across all sectors in July, indicated a slight decline in sentiment in August.

“The August PMI reading of 49.9 indicates that Bangladesh’s economic activity remained broadly near the neutral threshold, despite temporary pressures on manufacturing and services,” said M Masrur Reaz, chairman and CEO of PEB.

“Agriculture continued expanding, while construction returned to growth, highlighting underlying economic resilience.”

He said the moderation in manufacturing partly reflected weaker monthly exports and temporary energy disruptions associated with LNG infrastructure maintenance.

He added that improved energy availability, stronger export demand and supportive measures to restore business confidence could help the economy regain momentum.

Bangladesh and Australia on Tuesday discussed various bilateral and multilateral issues, including cooperation in trade, investment, energy, labour mobility, and regional and global issues.

Australian High Commissioner to Bangladesh Susan Ryle, who paid a courtesy call on State Minister for Foreign Affairs Humaiun Kobir at his office, reaffirmed that Australia will continue to support Bangladesh regarding vocational training and health issues.

The envoy said Australia will always be with Bangladesh in resolving the Rohingya crisis as well.

She also mentioned that Australia and Bangladesh are closely cooperating at the UN and other international forums, said the Ministry of Foreign Affairs.

State Minister Humaiun sought closer cooperation and collaboration between Australian TAFE (Technical and Further Education) institutions and our Technical Training Centres (TTCs), as well as in training for Bangladeshi caregivers.

He praised Australia's continued support in addressing the Rohingya humanitarian crisis and hopes to continue working closely with Australia towards a sustainable solution to this prolonged crisis.

The country's premier bourse returned to negative territory today (8 September), erasing early intraday gains as subdued investor confidence and macroeconomic headwinds prompted a wave of profit-taking.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) dropped by 28 points, or 0.50%, to settle the session at 5,539.

The day's trading was characterised by significant volatility. The market opened on a positive note, carrying forward the bargain-hunting momentum from the previous day's late-session rally, which pushed the benchmark index to an intraday high of 5,628.63 points.

However, the optimism was short-lived. As the session progressed, selling pressure intensified, dragging the index to an intraday low of 5,536.98 points before it closed near that level.

According to market analysts at EBL Securities, the capital market failed to sustain the previous day's buying spree as broad-based sell-offs resumed. Subdued investor confidence, fuelled by persistent concerns over the national energy crisis and uncertainty ahead of the corporate earnings season, outweighed optimism over potential regulatory support.

Despite the high trading volume, the textile sector fell 1.7%, while ceramics and general insurance also ended lower. Services and real estate was the lone gainer, edging up 0.4%.

Sheltech Brokerage Limited said the fragile sentiment led to heavy distribution in the late session, reflecting a preference among investors to lock in whatever gains remained.

Market participation remained relatively low, although turnover on the DSE rose marginally by 3% to Tk590 crore from the previous session. Market breadth turned sharply bearish, with 252 issues declining, 83 advancing and 61 remaining unchanged.

The textile sector dominated turnover, accounting for 30.3% of total trading, followed by general insurance at 13.5% and pharmaceuticals at 9.2%.

Despite leading turnover, the textile sector fell 1.7%. Ceramics and general insurance also ended lower, while services and real estate was the lone sector to gain, edging up 0.4%.

Individual stock performance was highlighted by Envoy Textile, Malek Spinning, and Sharp Industries, which were among the most traded stocks of the day.

In the gainers' list, Sunlife Insurance topped the chart with a 6.32% rise, followed by Atlas Bangladesh, GQ Ball Pen, and Envoy Textile.

Conversely, Saiham Textile emerged as the top loser, shedding 9.74% of its value, followed closely by Prime Textile, Reliance One Mutual Fund, and Malek Spinning.

The bearish sentiment was not entirely mirrored at the Chittagong Stock Exchange (CSE), where the key indices managed to eke out marginal gains.

The Selective Categories' Index (CSCX) inched up to 9,131 points, while the All Share Price Index (CASPI) rose by 8 points to settle at 14,927. Turnover at the port city bourse saw an 8% surge, reaching Tk20 crore.

The Chittagong Stock Exchange (CSE) is pushing to diversify Bangladesh's capital market by introducing a commodity exchange, aiming to expand investment opportunities and bring the country's financial market closer to international standards.

Md Saifur Rahman Mazumdar, managing director of the CSE, said the initiative would also challenge the conventional perception that the capital market is limited to share trading.

He made the remarks at a workshop titled "Diversification of the Capital Market: Prospects of Commodity Exchange in Bangladesh", organised by the Chattogram Television Reporters Network at the CSE conference room today (8 September).

Saifur said incorporating a commodity market into the capital market would diversify the financial system and create new investment avenues.

Speakers said a commodity exchange could help businesses manage risks from price fluctuations while providing a more transparent mechanism for price discovery.

An organised and properly regulated market would allow buyers and sellers to determine commodity prices through formal trading rather than relying solely on fragmented physical markets, they said.

Bangladesh's capital market is currently centred largely on equities and related securities. A commodity exchange would introduce organised trading in commodities and potentially provide instruments to hedge against price risks.

The speakers, however, stressed that the market would require appropriate regulations, trading infrastructure, warehousing and quality standards, along with safeguards against manipulation.

The CSE has been working on developing a commodity exchange for several years as part of efforts to broaden the country's capital market.

For Bangladesh, where businesses are often exposed to sharp fluctuations in imported raw material and commodity prices, such a platform could provide an additional tool for managing commercial risks.

The success of the initiative will depend on establishing the regulatory, technological and physical infrastructure needed to ensure transparent and credible commodity trading.

Former CSE president Mirza Salman Ispahani attended the workshop as chief guest, while CSE Director Major Md Emdadul Islam was present as special guest.

Bangladesh Bank has appointed an administrator and two associate administrators to oversee the resolution process of listed non-bank financial institution Fareast Finance and Investment Limited, amid efforts to ensure its smooth and effective implementation.

The central bank appointed its Director Md Sadequr Rahman as administrator, supported by Additional Directors Shadril Ahmed and Md Al-Amin as associate administrators, according to a disclosure published today (8 September).

All three officials formally assumed their respective roles on 9 August, the disclosure said.

The appointment follows Bangladesh Bank's decision to declare Fareast Finance alongside three other non-bank financial institutions (NBFIs) as non-viable under the Bank Resolution Act, 2026.

Following Bangladesh Bank's non-viable declaration and administrator appointments, both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) suspended trading of Fareast Finance shares. Fareast Finance and Investment got listed on the stock exchange in 2013.

Its current paid-up capital Tk164 crore divided by 16.40 crore shares. Market capitalisation of the NBFI stood at Tk34.46 crore until 8 September with Tk18.91 crore free-float capitalisation of the company.

Until September 2025, the company had incurred a loss of Tk61 crore, compared with a loss of Tk84.18 crore in 2024.

According to DSE data, sponsor-directors held a 39.74% stake in the listed firm, while institutional investors held 14.77% and general investors held the remaining 45.49%.

Bangladesh's benchmark DSEX index could reach the 10,000-point mark by the end of 2027 as the economy moves from stabilisation to recovery and eventually acceleration, according to Capital Alliance (CAL), a frontier-markets-focused investment bank.

In its recent published Bangladesh Macro Outlook 2026-30 report, titled "Shifting Gears," CAL projects around 70% upside in the benchmark index from its late-July 2026 level of 5,896 points. The forecast is based on a combination of stronger corporate earnings, improving macroeconomic stability, monetary easing and a potential re-rating of the stock market.

CAL Bangladesh, a part of the CAL Group incorporated in the UAE with roots in Sri Lanka, previously received a Trading Rights Entitlement Certificate (TREC) from the Dhaka Stock Exchange to conduct stock-market operations under the brokerage firm named ACL Securities Limited.

The report, which tracks more than 450 macroeconomic and market indicators, argues that Bangladesh does not need an economic miracle to achieve the target. Rather, a return to historical growth patterns, combined with improving investor confidence, could drive the market higher.

Despite the bullish outlook, CAL has identified several risks. Global energy shocks could keep inflation elevated and delay interest-rate cuts, while unresolved banking-sector capital problems could limit the financial system's ability to fund economic expansion.

Domestic energy shortages could also prevent industries from fully utilising their existing capacity.

Earnings growth and valuation re-rating

CAL expects corporate earnings to rebound by 26% year-on-year, supported by higher revenues as real incomes recover, improved operating margins as companies utilise spare capacity, and lower finance costs as interest rates decline.

The investment bank also expects the market's price-to-earnings (P/E) multiple to rise from around 10.4 times currently to 14 times by end-2027.

According to CAL, the combination of higher earnings and a higher valuation multiple could provide the main fuel for DSEX to reach 10,000 points.

The report identifies three key drivers behind the expected acceleration: demographic expansion, productivity gains and monetary easing.

Bangladesh is adding around 11.5 lakh workers annually, with the working-age population growing by about 1.5% a year. CAL predicts that by 2030, the number of households in the middle-income category – defined here as those earning more than $325 per month – will rise by 28%, reaching 1.5 crore households.

This expanding consumer base is expected to support demand for consumer goods and services.

At the same time, Bangladesh has significant unused industrial capacity. Companies invested heavily in FY23, but production remained constrained by energy shortages and high borrowing costs. As these pressures ease, companies could increase output without immediately undertaking substantial new capital expenditure, improving profitability through operating leverage, according the report.

Monetary policy is another key factor. Bangladesh Bank delivered its first policy-rate cut in six years in mid-2026, and CAL expects the easing cycle to continue.

The 364-day Treasury bill rate, which has remained above 12%, is projected to fall to 7.7%-8.5% by June 2027, according to the report. Lower borrowing costs are expected to support private-sector credit and investment.

Macro stability and consumer boom

CAL believes Bangladesh has largely moved beyond the correction phase of 2023-25. Money growth has been restrained, while inflation has fallen more than three percentage points from its peak.

The country's balance of payments has also returned to surplus and the foreign exchange market has stabilised, creating a more favourable backdrop for investment.

CAL expects the taka to remain relatively stable against the US dollar, reaching Tk125-Tk127 per dollar by June 2027, implying depreciation of only 1.5%-3.2%.

A more stable currency could also encourage foreign portfolio investors to return to Bangladesh's capital market after staying on the sidelines amid currency volatility and the previous floor-price regime, the report added.

The report also projects Bangladesh to become the world's ninth-largest consumer market by 2030, surpassing economies such as Germany and the UK. Per-capita GDP is expected to reach $4,000, supporting a shift from unbranded goods towards trusted and premium brands.

CAL said much of the infrastructure needed to support this consumption-led expansion is already in place or nearing completion. Electricity-generation capacity, for example, is expected to rise from 12.4GW to 28GW, while major infrastructure projects such as Dhaka Metro Rail and the third terminal of Hazrat Shahjalal International Airport are supporting economic activity.

CAL nevertheless maintains its "Accumulate Stocks" recommendation, arguing that these risks are more likely to affect the timing of the recovery than its overall direction.

The report concludes that investors who position themselves before the recovery becomes fully visible could benefit from the market's next phase of growth.

The Dhaka Stock Exchange (DSE) Brokers Association (DBA) has urged the stock exchange to avoid what it called "unnecessary harassment" of brokerage houses, particularly in cases where inspections or investigations could disrupt their normal business operations.

The association made the request at a meeting with the DSE today (8 September), where members of the DSE board were present. The meeting discussed recent inspections of brokerage houses and their potential impact on the capital market.

Market participants said nearly 100 brokerage firms have come under investigation over the past one and a half years. Of these, around 8 to 10 brokerage firms were reportedly inspected or investigated last week.

DBA President Saiful Islam told TBS that the association does not oppose investigations by the Bangladesh Securities and Exchange Commission (BSEC) or the stock exchange.

"We do not want unnecessary harassment of brokerage houses. The aggressive approach taken by the stock exchange in investigating brokerage houses has had a negative impact on the market, which is not desirable," he said.

He said routine investigations were necessary and that appropriate action should be taken if any brokerage house was found to have committed irregularities.

"Routine investigations can take place. If any brokerage house has committed an irregularity, it should be appropriately punished. But it should not be done in a way that creates a negative impact on the market," he said.

Saiful said several brokerage houses have recently faced investigations, and the way these incidents have come into the public domain has negatively affected both the concerned firms and the broader capital market.

"Investigations should be conducted in a tolerable manner so that there is no disruption to business activities. We should not feel stressed, and there should be no damage to the market," he said.

DSE's position

Responding to concerns over excessive intervention in brokerage houses, the DSE chairman said the exchange's board does not interfere in the day-to-day activities of its Regulatory Affairs Department. Instead, the board provides policy-level guidance.

He said the DSE would investigate or conduct inquiries into specific matters when there is information indicating particular irregularities.

The DSE chairman also urged member firms to resolve any shortages in their CC accounts, shares or other assets on their own initiative and without delay.

Such shortages not only affect the operations of the concerned firms but also damage the reputation of the capital market's overall ecosystem, he said.

"To make the market more disciplined, transparent and aligned with international standards, all stakeholders must properly perform their respective responsibilities. Through collective efforts, it is possible to take Bangladesh's capital market to a new height within the next five years," he said.

He also called on member firms to share their problems, concerns, recommendations and new ideas with the DSE, saying the exchange wants to make its market-development initiatives and future activities more effective based on the practical experiences and views of its members.

Why recent inspections were conducted

The DSE said some compliance and surveillance inspections from 2025 remained unresolved and needed to be completed through the submission of reports to the BSEC.

The recent inspections of brokerage houses were conducted as part of the process of completing those outstanding inspections, it said.

Participants at the meeting also stressed the need for clear and specific criteria for determining abnormal trading.

They said high trading volumes in a particular period should not, by itself, be considered an irregularity. Instead, assessments should take into account the nature of the transactions, their impact on share prices, the investor's financial capacity and the instructions given for the trades.

Saiful Islam said the concerns of brokerage houses were discussed in the presence of the DSE board, which he said agreed with the points raised by the DBA.

He added that the DSE managing director assured the association that such problems would not recur in the future.

The Dhaka Stock Exchange (DSE) is set to introduce a web-based platform to automate and integrate the creation and redemption of open-end mutual fund units, aiming to make mutual fund investments more accessible and transparent for investors.

The proposed system was unveiled at a workshop hosted by the DSE on Monday. The platform will be accessible through both desktop and mobile applications, allowing investors across Bangladesh to participate more conveniently in open-end mutual fund transactions.

Under the proposed framework, stockbrokers will act as selling or dealing agents for asset managers, assisting investors in purchasing and redeeming fund units. All sales and redemptions will be executed at prices determined by the respective asset managers, in compliance with the Bangladesh Securities and Exchange Commission (Mutual Fund) Rules, 2025.

BSEC Commissioner Nafeez Al Tarik, who attended the workshop as chief guest, praised the DSE initiative, saying the platform would play an important role in developing the mutual fund industry and delivering greater benefits to investors.

DSE Managing Director Nuzhat Anwar said the initiative is part of the exchange's broader efforts to modernise capital market infrastructure and encourage portfolio diversification.

"Developing this platform marks a major step toward making mutual fund investments simpler, more convenient, transparent and technology-driven," she said.

DSE General Manager (Market Development) Saied Mahmud Zubayer gave a detailed presentation on the proposed system and its operational framework at the workshop.

The proposed platform is expected to bring the buying and redemption process for open-end mutual fund units into a more integrated digital environment, potentially reducing operational complexities for investors, brokers and asset managers.

Data centers are running into a wall of public anger in the United States over their thirst for water and power.The tech giants spending billions of dollars on them say the water part, at least, is solvable.
Data centers are the warehouses full of computer servers that run the internet and increasingly artificial intelligence.The computers get hot, and keeping them cool takes water.American chip giant Nvidia said in a June report that it can eliminate water consumption almost entirely at some facilities when deploying DSX, its newest system for designing and managing AI data centers.It's a bold claim, and one the industry is under mounting pressure to make good on.

In 2025, data centers consumed 222 billion liters (59 billion gallons) of water worldwide for cooling, according to consultancy Rystad Energy.Without adaptive measures, the figure could nearly triple to 644 billion liters by 2030, Rystad estimates. Steps to limit the growth could keep it under double.

Nvidia's new method uses a closed-loop cooling system in which liquid flows directly through the servers, as close as possible to the chips, whose temperature can rise above 80C (176F).

The problem is that "there's a pretty direct trade-off between how much water is used and how much energy is used" for temperature control, said Andy Masley, an independent researcher who covers AI and data centers.

Cutting back on water use usually means more power as the liquid in those sealed pipes still has to be cooled down somehow, usually by blowing air over it -- and that takes electricity.

Nvidia gets around some of this by letting the liquid enter the servers warmer than usual, at 45C.

Most other closed-loop systems ran at about 32C in 2024, according to the Uptime Institute, which certifies data centers.

By starting with warmer water, Nvidia does not need to pump in cooled air year-round.

"Simple fans circulating the air" are often enough, though sometimes a mix of methods is needed, said Josh Parker, Nvidia's head of sustainability.

At sites in extreme climates, or during a heat wave, chill airflow or water evaporation is still necessary.

Microsoft, Amazon Web Services (AWS) and Meta told AFP that they also use closed-loop systems, which they said involve no net water loss.

The two cloud computing giants, which have been expanding their already huge data center footprints, used more water overall between 2022 and 2025, but their water use efficiency improved by 25 percent at Microsoft and 37 percent at AWS, according to their most recent sustainability reports.

There is no industry-wide consistency, however, in how companies report data on so-called environmental, social and governance (ESG) efforts.

Elon Musk's SpaceX, now a major player in data centers after it acquired his artificial intelligence company xAI, has never published an ESG report.
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In June, ratings agency MSCI gave SpaceX its lowest ESG score.

"Because water is generally much cheaper than electricity," companies have less incentive to cut water use on cost grounds alone, said Shaolei Ren, an engineering professor at the University of California, Riverside.

"There are incentives," Ren said, but they have more to do with public relations amid the growing backlash to data centers across the United States.

Another obstacle is that upgrading an older data center to newer, less thirsty technology is expensive.

That may matter less than it sounds.

Older data centers are smaller and less powerful than the enormous new ones being built now, so they need less cooling in the first place, said Minh K. Le, who leads data center and hydrogen research at Rystad.

And the water a data center uses directly is only part of the story.

Water is used to generate the electricity that powers the data center, and to manufacture its chips and servers.

In the United States, that hidden water use can be twice the amount a data center consumes on its own.

Oil prices extended gains on Monday as tit-for-tat strikes between the US and Iran on vessels sailing in the Strait of Hormuz and other areas heightened concerns of a prolonged supply disruption from the Middle East.Brent crude futures climbed 79 cents, or 0.82 percent, to $97.07 a barrel by 0512 GMT while US West Texas Intermediate crude was at $92.28 a barrel, up 80 cents, or 0.87 percent.
Brent rose 7.8 percent last week while WTI gained nearly 10 percent after the US and Iran resumed attacks and caused a reduction in oil flows through the Hormuz strait where a fifth of the world's oil supply used to transit.US forces struck three Iranian oil tankers on Saturday, US Central Command said, including one off the coast of Kharg Island, near Iran's key oil export hub.The navy of Iran's Islamic Revolutionary Guard Corps said on Saturday it targeted three oil tankers that were travelling through unauthorized routes in the Strait of Hormuz as well as three additional US vessels in other areas.

The Saturday attacks represented a "major escalation in the maritime conflict", maritime intelligence firm Marisks said.

"Commercial tankers are now being deliberately used as instruments of reciprocal economic pressure, substantially weakening the previous distinction between military confrontation and commercial shipping," it added.

An average of 10 commodity ships transited the Strait of Hormuz per day over the past 10 days, the lowest since May, data from analytics firm Kpler showed on Monday.

"If tanker traffic begins to slow materially, the market could price in a much larger supply shock. And there are already signs that this is happening," said Priyanka Sachdeva, head of market insights at Phillip Nova.

A restricted zone will be announced outside the Strait of Hormuz in coming days, Mohsen Rezaei, the secretary of Iran's Supreme National Security Council, said on Sunday, according to state media.

OPEC+ kept its oil output policy unchanged for October at a meeting on Sunday, the producer group said in a statement, as it needs to agree new quotas before deciding its next output steps.

A prolonged standoff, punctuated by calibrated military action by the US and Iran, appeared to be the most likely scenario and was likely to delay the path to full recovery of Middle East supply, ANZ analysts said in a note.

"We then expect exports to remain constrained through the rest of 2026, before a gradual reopening late in Q4 2026," they said, adding that a return to pre-war throughput is not expected until late first quarter or early second quarter of 2027.

The United Arab ​Emirates is building alternative routes for its energy exports and trade to ensure they are not "held ‌hostage" by the ongoing war between the US and Iran, UAE presidential adviser Anwar Gargash said on Monday (7 September).

The conflict has had a significant impact on Gulf Arab states, including the UAE, after Tehran fired missiles at the country and attacked its oil tankers in the Strait ​of Hormuz.

"Our energy exports will not be held hostage, nor will our trade and economic activity," Gargash ​told the Hili Forum in Abu Dhabi.

The UAE has been expanding port capacity along its eastern ⁠coast, as well as developing pipelines, railways and trade routes for alternative corridors, he said.

While acknowledging that relations with Iran ​could eventually recover, Gargash warned that rebuilding trust after the attacks could take decades.

He also criticised Gulf Arab states ​for failing to mount a coordinated response to Iran, saying they had been unable to translate shared concerns into a unified strategy.

US alliance not enough

Qatar's foreign ministry spokesperson echoed similar concerns at the policymakers' forum, saying Gulf Arab countries should not rely solely on ​their strategic partnership with the US for security.

"We need to realise in the Gulf that having international forces ​in the region, having a strategic alliance with the US is very important but is not enough," Majed al-Ansari said.

"Self-sufficiency when it ‌comes ⁠to security is the only way forward."

Gargash argued that while the partnership with the US is essential, the six-month conflict has exposed the importance of national capabilities.

"Our security is our first priority. When we depend entirely on others, we cannot always assume it will be their priority," he said.

Hormuz remains a sticking point

Iran followed through on its ​threat to close the Strait ​of Hormuz, once a ⁠conduit for a fifth of global energy supplies. The disruption sent energy prices soaring and sparked a global economic crisis.

The waterway's status remains a central obstacle in negotiations between ​Washington and Tehran, mediated by Qatar and Pakistan, with Iran claiming the strait ​belongs to Iran ⁠and Oman — a position Gulf states broadly reject.

"Freedom of navigation is not a concession to be granted, nor a principle to be renegotiated under pressure," Gargash said, adding that any long-term resolution must include credible guarantees against further Iranian attacks ⁠on Gulf ​Arab states.

The conflict, sparked by US and Israeli strikes on Iran ​on February 28, remains deadlocked. A preliminary ceasefire reached in June has unravelled, and little progress has been made in efforts to revive the ​peace process.

China’s seaborne imports of crude oil ticked up in August from July but remained nearly 40 percent below levels before the start of the Iran conflict. China, the world’s biggest oil importer, saw seaborne arrivals of 7.14 million barrels per day (bpd) in August, from July’s 6.93 million bpd, according to data compiled by commodity analysts Kpler.August’s imports were 4.27 million bpd below the average of 11.41 million bpd in the three months leading up to the US and Israeli attack on Iran on February 28.
The dramatic reduction in China’s seaborne crude oil imports since the start of the conflict means it is shouldering the bulk of the adjustment of lower volumes from the Middle East, with exports dropping amid constrained flows through the Strait of Hormuz.The narrow waterway remains contested between Iran and the United States, and while there is dispute over exactly how much crude oil and refined products are getting through, it is certain that it remains well below the near 20 million bpd before the conflict began.Asia’s seaborne crude oil imports were 22.64 million bpd in August, down slightly from 23.40 million bpd in July, but 4.29 million bpd, or 16 percent, below the average of 26.93 million bpd in the three months to the end of February.

The drop in Asia’s seaborne oil imports in August is only 20,000 bpd more than the decline in China’s arrivals.

While most crude oil market participants expected Beijing to cut its imports in response to the higher prices caused by the Iran conflict, the extent of the drop is surprising.

China has a history of cutting imports when prices surge, but boosting them to increase stockpiling when prices slip. Benchmark Brent crude futures jumped 75 percent from the start of the conflict to a four-year high of $126.41 a barrel on April 30.

They moderated to $96.28 a barrel on September 4, but this remains a price level above what many Chinese refiners would be comfortable paying.

The question for the crude oil market is whether China will continue to curb its imports amid ongoing high prices, or whether its refiners will seek to secure cargoes so that they do not have to tap inventories.

There are several dynamics at work in the answer to that question. Firstly, China’s smaller independent refiners are losing access to Iranian crude as the US naval blockade ensures that no new Iranian crude leaves the Gulf and the oil in tankers gets delivered and depleted. This means these refiners either have to pay more for cargoes from other suppliers, or cut processing rates.

China is buying more from Russia, another exporter under Western sanctions, but that puts it in competition with India as refiners in the South Asian nation have largely replaced constrained Middle East supplies with crude from Russia.

China’s seaborne imports from Russia reached 1.68 million bpd in August, up from 1.40 million bpd in July and the most since March, according to Kpler data.

China also buys about 1 million bpd via pipelines from Russia. Another factor to consider is whether China’s refiners try to export more refined fuels, given the extremely high profit margins currently on offer in Asia for products such as diesel and gasoline.

Exports of light and middle distillates were 963,000 bpd in August, up from 774,000 bpd in July and above the 713,000 bpd average for the three months prior to the start of the Iran war.

The increase in August’s shipments of light and middle distillates almost exactly matches the increase in crude imports. While this may just be a coincidence, it does illustrate the wider point that if China does lift product exports, it will probably have to increase crude imports as well.

Since the start of the Iran war, China’s decision to slash crude imports has been a major factor in keeping oil prices from surging. But its lack of product exports in the April to June period is also a factor in keeping fuel prices elevated in Asia. Given the risk of shortages of refined fuels in Asia, perhaps it would be better for the market if China bought more crude but also exported more fuel.

Summit LNG Terminal II Company Limited has urged the government to reconsider the interim government's decision to cancel a deal for setting up the country's third floating storage and regasification unit (FSRU) for LNG imports.

The company said retaining the agreement instead of proceeding with an FSRU proposed by a Chinese company could save Bangladesh around $1.10 billion.

In a letter sent to the chairman of Petrobangla on 6 September, Summit said if the agreement signed in March 2024 is retained, the FSRU, mooring system and subsea pipeline would be handed over to Petrobangla free of cost after 15 years of operation.

Bangladesh currently has two FSRUs – one owned by Summit Group and the other by US-based Excelerate Energy Bangladesh. During the Awami League government, the authorities signed an agreement with Summit on 30 March 2024 to set up another FSRU.

Before the FSRU is handed over, it will undergo a full dry-docking and certification by a globally recognised classification society. This, Summit said, would ensure that the FSRU remains fit for another 10 years of operation.

The government is taking various initiatives to address the country's energy shortage, including plans to install additional FSRUs. As part of this effort, the Cabinet Committee on Economic Affairs on 28 July gave in-principle approval to set up a third FSRU through China National Energy Engineering and Construction Company under a government-to-government arrangement.

The Chinese company submitted its proposal to the government on 19 June.

In the letter signed by Summit LNG Terminal II Company Secretary ASM Nazmul Haider, the company said the second terminal was supposed to be implemented under a Build-Own-Operate-Transfer (BOOT) model under its agreement with Petrobangla.

However, the Build-Own-Operate (BOO) structure currently being considered for the Chinese company's proposed third FSRU would not provide for the transfer of the FSRU to Petrobangla.

As a result, Petrobangla would not obtain full ownership of the FSRU, causing an estimated economic loss of around $883 million, Summit said.

Citing reports published in the media, Summit said the proposed Chinese FSRU would have a daily charter rate of around $3,42,000, compared with approximately $3,00,000 for its second terminal.

This would mean a saving of around $42,000 per day if the Summit terminal agreement is retained, amounting to approximately $230 million over 15 years.

"Therefore, the total financial savings would be approximately $1.10 billion," the company said.

Summit also claimed it has already invested more than $20 million in the project.

Bangladesh is making a final push to win support from countries and trade blocs for a three-year delay to its graduation from the UN list of Least Developed Countries (LDCs), as the 81st session of the UN General Assembly begins in New York.

The decision on Bangladesh and Nepal’s requests to defer their LDC graduations by three years is expected at the session.

The 81st UNGA begins today, with the main high-level meetings of heads of state and government scheduled for September 18 to 28, according to the UN.

Bangladesh’s request to defer its graduation has already been recommended by the UN Committee for Development Policy (UNCDP). Following that, the UN Economic and Social Council (ECOSOC) agreed to put the proposal before the General Assembly.

“The decision on Bangladesh’s issue of LDC graduation deferment may be taken in the high-level meeting between September 22 and September 23,” Commerce Secretary Md Ataur Rahman Khan told The Daily Star over the phone yesterday.

Bangladesh has been lobbying different countries and trade blocs, including the European Union (EU), for support for its request for a three-year deferral, Ataur said.

The commerce secretary recently visited New Zealand and Australia to seek their support, arguing that the country needs more time to prepare for a smooth graduation.

“Bangladesh has also sought the backing of the G77, a group of 135 developing countries, and its members have committed to supporting the proposal at the UNGA,” Ataur said.

Bangladesh is also in close contact with the EU and African LDCs to seek their support. Nepal is backing Bangladesh’s efforts as it has also sought a deferral, he said.

The commerce secretary said that senior government officials have been seeking support directly from governments and trade blocs, while Bangladesh’s high commissioners in different countries have also been lobbying on the issue.

The deferral request could be decided in one of two ways. If Bangladesh’s proposal is approved unanimously, there will be no need for a vote.

But if there is no consensus, the proposal will go to a vote among member states. Bangladesh will need a two-thirds majority for its request to be approved.

“I am very much hopeful that we can secure the support of the required member countries for the deferment of the LDC graduation, as we have been working on it over the last few months and still continuing our efforts. They have also committed to supporting us,” the commerce secretary also said.

Earlier, on February 19, the BNP government sent a letter to the chair of the UNCDP, requesting that the preparatory period be extended until November 24, 2029, saying more time was needed to ensure adequate preparedness.

Following Bangladesh’s request, the UNCDP discussed the issue at its annual meeting in February and agreed on a process to assess the proposal.

The country’s business community has also been pressing the current government and the previous interim administration to delay graduation, saying businesses need more time to prepare.

Business leaders said high bank interest rates and the political changeover in 2024 following widespread protest and political uncertainty have hit the economy.

A UN assessment report in March said Bangladesh still faced serious gaps in its readiness for graduation, as its economy continued to be affected by domestic and international shocks, including the US-Israel’s war on Iran.

The report highlighted disruptions between 2017 and 2026, including climate vulnerability, the Rohingya crisis, the Covid-19 pandemic, the Russia-Ukraine war, inflation, pressure on the balance of payments and a prolonged macroeconomic slowdown that predated the regime change.

It said that while Bangladesh met all three criteria for graduation, significant risks persist, including the loss of trade preferences, fiscal and financial vulnerabilities, and weak institutional coordination.

Rising import costs for fossil fuels have created operational constraints, while gas shortages have worsened because of the Middle East conflict, said the UN report.

Economic growth slowed from 7.1 percent in FY22 to 3.5 percent in FY25, weakening momentum ahead of graduation. Inflation has outpaced wages, pushing millions into hardship and vulnerability.

A recent UN Trade and Development assessment estimated that Bangladesh could lose more than $17.5 billion in annual exports after graduation.

Mustafizur Rahman, distinguished fellow at the local think tank Centre for Policy Dialogue (CPD), said Bangladesh’s preparation has been taken in two ways. First, Bangladesh applied for the deferment; second, the UN itself conducted an assessment based on Bangladesh’s plea for deferment.

Bangladesh will have to secure the deferment at this session as the country’s LDC graduation is scheduled for November 24 this year, he added. He also said the support of African LDCs is important.

Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said Bangladesh should now build consensus among UN member states so that the proposal can be passed smoothly at the General Assembly.

“Bangladesh should continue lobbying the G77 and the EU, while securing support from African LDCs is particularly important because most LDCs are in Africa,” he said.

Moreover, a consensus should be built between the UNCDP and UN ECOSOC that Bangladesh is facing a crisis, said the economist, specialising in applied international trade and development issues.

“The main partners are the EU, UK, Scandinavian countries, G77 countries and the African LDC group,” he added. “The government should also send letters to different sub-committees of the UN body seeking their support for the deferment.”

However, it may be difficult to obtain US support. But Bangladesh will have to manage US support carefully as there is a reciprocal trade agreement with America, Razzaque also said.

On the other hand, Bangladesh may obtain support from the EU and UK more easily, the economist also said.

Md Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry, said Bangladesh needs the deferment as businesses are in big trouble.

“I am very hopeful that Bangladesh’s LDC graduation deferment will take place as it is needed for us,” he added.

He said that if the deferment does not take place, Bangladeshi trade and business will face a lot of trouble as they are not ready for a smooth graduation.

Finance ministry officials said the national committee on LDC graduation has also held a final preparatory meeting on the deferment proposal at the ministry.

A good number of ministers, advisers and secretaries from different ministries attended the meeting, chaired by Finance Minister Amir Khosru Mahmud Chowdhury.

Ministry officials also said Prime Minister Tarique Rahman may lead the Bangladesh delegation at the 81st session of the UNGA, although the schedule has not been fixed yet.

Petrobangla has sharply eased the entry requirements for new spot liquefied natural gas (LNG) suppliers as Bangladesh seeks to widen its sourcing options amid severe gas shortages and rising global LNG prices.

The state-run corporation will now allow companies to seek enlistment with just one successfully completed LNG supply contract and $50 million in financial capacity. This is a significant relaxation of the experience, financial and operational requirements introduced in March.
The move comes at a difficult time for the country’s LNG procurement. Disruptions at its two floating LNG terminals, cargo delivery problems and a global supply squeeze pushed average gas supply to 2,235 million cubic feet per day (mmcfd) in August -- the lowest August supply in a decade.

Official demand was around 3,860 mmcfd.The government had to make emergency direct purchases of LNG as industries struggled with low gas pressure and power generation was hit by fuel shortages.

Spot LNG prices have also risen sharply. Bangladesh last week approved a cargo at more than $28 per million British thermal units (MMBtu), the highest price since 2022. Before the Middle East war disrupted global supplies, the country typically paid $10 to $12 per MMBtu for spot LNG.

Against this backdrop, Petrobangla issued a fresh international invitation on August 29 to enlist more suppliers under “revised criteria”.

KEY REQUIREMENTS EASED

Under the March rules, applicants needed at least two years of LNG supply experience and deliveries of at least 0.5 million tonnes in each of two of the previous five years.

The new criteria require only one successfully completed LNG supply contract, with no minimum delivery volume.

The financial threshold has also been cut from $100 million in net worth in two of the previous three fiscal years to $50 million. Companies can meet the requirement through liquid assets, working capital, credit facilities or bank solvency.

Several other requirements have been removed.

Applicants no longer need experience supplying LNG to floating storage and regasification unit (FSRU)-based terminals or the ability to supply lean LNG containing at least 91 percent methane.

They also no longer need to show that they had no failed LNG cargo deliveries in the previous five years or own or charter an LNG carrier. The revised document marks these requirements as “Not Applicable”.

The requirement to provide arbitration history has also been removed. Previously, applicants could have no more than three arbitration awards against them in the previous five years.

Joint venture requirements have also been eased. The lead partner now needs only one successfully completed LNG supply contract.

The $50 million financial requirement can also be shared, with the lead partner meeting 75 percent and the other partner or partners the remaining 25 percent.

The changes could bring LNG traders with shorter operating histories, lower financial capacity and no LNG carrier of their own or under charter into Petrobangla’s supplier pool.

However, Petrobangla has not explained why it relaxed requirements introduced only a few months ago.

Petrobangla Director (operations and mines) Md Shoyeb, the contact person for the enlistment process, told The Daily Star that the changes aim to attract more suppliers.
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“We are looking for more participants in the spot market,” he said.

A virtual pre-application meeting with prospective suppliers is scheduled for today, while applications are due by September 15.

The exercise will not replace existing suppliers, and companies already enlisted for spot LNG supply do not need to apply again.

Petrobangla currently has 30 companies on its latest spot LNG tender list. The new exercise could further expand a supplier pool that has grown significantly since the change of government in August 2024.

Before then, Petrobangla had Master Sale and Purchase Agreements with 23 suppliers, but spot LNG purchases were largely concentrated among four or five suppliers.

The interim government later brought spot LNG purchases under the public procurement framework after suspending procurement under the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010.

The latest enlistment is being conducted under the Public Procurement Rules 2025.

The Cabinet yesterday (7 September) approved a proposal to provide duty and tax waiver facilities for the import of machinery and spare parts for renewable solar power generation.

The approval came at a Cabinet meeting held at the Cabinet Room of parliament complex with Prime Minister Tarique Rahman in the chair, according to a Cabinet Division press release.

Under the approved proposal, machinery and spare parts imported for setting up renewable solar power plants will be exempted from customs duty beyond 1%, entire regulatory duty, supplementary duty, value-added tax (VAT), advance tax and advance income tax for 180 days from the date of issuance of the notification.

The government expects the measure to help meet electricity demand by facilitating faster expansion of renewable solar power generation, while reducing the difficulties caused by power shortages and supporting uninterrupted industrial production.

The Cabinet also approved a proposal to amend a notification on the minimum price of low-tier cigarettes under the Value Added Tax and Supplementary Duty Act, 2012.

Under the amendment, the maximum retail price of low-tier cigarettes will be reset at Tk65 or above per 10 sticks, replacing the existing threshold of Tk 62 or above.

The amendment is also expected to help reduce illegal cigarette trade and revenue losses.

In another decision, the Cabinet approved a proposal to sign a Promotion and Protection of Investment Agreement between Bangladesh and Hong Kong.

The agreement is aimed at strengthening existing economic ties between the two sides and attracting new investment, particularly in sectors such as garments and textiles.

According to the proposal, the agreement will help ensure necessary security and protection for investments by both sides and contribute to industrialisation, employment generation, technology and knowledge transfer, and increased production capacity.

The agreement will remain valid for 10 years, while a provision has been included allowing both sides to amend it three years after its signing.

The agreement is also expected to establish an effective institutional framework to increase foreign investment flows between Bangladesh and Hong Kong.

Sammilito Islami Bank began returning principal amounts to customers who applied to withdraw on 1 September. Around 6,000 customers collected Tk250 crore nationwide on the first day, against Tk1,329 crore sought by 18,000 applicants scheduled for repayment that day.

While 18,000 customers had applied to withdraw their deposits, only around 6,000 turned up to collect their money yesterday (7 September). The repayment process began after Bangladesh Bank provided the bank with Tk5,000 crore on 6 September to meet depositors' withdrawal demands. Eligible customers received their money, with bank officials welcoming them with flowers and sweets.

Visits to several branches in the capital yesterday morning found that funds had been arranged according to customer demand, while some customers were being allowed early withdrawals in cases of urgent need.

Rahim Khan, manager of the Kakrail branch, formerly First Security Islami Bank, said 11 customers who applied on 1 September were scheduled to withdraw money yesterday. One had already collected the money, while the remaining 10 had been called to collect their deposits.

At the Paltan branch, formerly EXIM Bank, second officer Joynul Abedin said 17 customers had applied, but only two came to collect their deposits. "The two customers who came were given their full amounts," he said.

At the Naya Paltan branch, formerly Global Islami Bank, Sharmin Jahan received Tk20,000 after applying on 3 September, ahead of schedule because her child fell ill. Another customer, Didar, who also applied on 3 September, was told to wait two more days.

Default loan verification via app

A bank official said customers' loan status is being checked through a dedicated app using their NID numbers before withdrawals are approved.

If defaulted loans are found, the matter will be referred to the relevant authority for a decision. Customers without defaults will receive funds under the rules, with Bangladesh Bank supervising the process.

The official urged depositors not to panic, saying the government had taken responsibility for the bank and their funds were safe.

Emergency withdrawals allowed

Saifuddin Ahmed Chowdhury, manager of the Naya Paltan branch, said sufficient funds had been arranged and Bangladesh Bank was monitoring the process round the clock.

Customers applying on 2 or 3 September will wait one or two additional days, but urgent cases involving illness or other emergencies are being considered.

Chowdhury SM Atikur Rahman Haider, manager of the Bijoynagar branch, formerly of Union Bank, said large depositors can keep, withdraw or transfer funds through Real-Time Gross Settlement (RTGS), subject to loan-status checks.

At the same time, the government has adopted a cautious approach towards taking new loans.

Emphasis is being placed on obtaining foreign loans only after considering the necessity of projects, their economic feasibility, investment benefits and the country’s future debt-servicing capacity.

According to the latest data from the Economic Relations Division (ERD), the government repaid US$453.23 million in principal and interest on foreign loans in July 2026. The amount was US$446.68 million in the same month of 2025.

On the other hand, foreign loan disbursement stood at US$180.1 million in July, compared with US$208.04 million in the same period of the previous year. The commitment for new foreign loans during the month stood at US$14.05 million.

The figures show that alongside regularly servicing its legacy debt, the government has also maintained restraint in taking new loans.

Priority is being given to using borrowed funds for projects capable of generating investment and employment, particularly by creating momentum in productive and manufacturing sectors.

The pressure of foreign debt repayment has increased significantly in recent years.

According to ERD data, the amount of principal and interest repaid against foreign loans in fiscal year 2025-26 increased by around 10 percent from the previous fiscal year to US$4.49 billion. The amount was US$4.09 billion in FY2024-25.

The main reason is that loans taken for large infrastructure and mega projects during the previous Awami League government have now entered the repayment phase.

As the grace periods for many of these project loans taken over the past one and a half decades have expired, repayment of principal and interest has begun.

As a result, the burden of debt servicing has increased during the tenure of the current government.

Talking to BSS, Prime Minister’s Adviser on Finance and Planning Professor Dr Rashed Al Mahmud Titumir said that the Awami League government borrowed extensively between 2009 and 2024 in the name of infrastructure and mega projects.

At the time of taking such loans, the government did not adequately consider the ‘value for money’ from the projects and the interest rates, he said.

He said a huge burden of loans and subsidies was also created in the power sector due to various factors, including capacity charges.

“The current government now has to deal with the additional pressure of repaying those loans. However, the government is servicing these liabilities,” he said.

Saying that the Awami League government had left a debt burden on future generations by taking loans indiscriminately, he said the present government has adopted an extremely cautious approach to borrowing from both domestic and foreign sources.

“We’re prioritising the use of loans to increase momentum in investment, particularly in the manufacturing sector. When taking a loan, we are considering what return it will generate and how much employment it will create before making a decision,” he said.

According to ERD data, repayment of principal and interest on medium-and long-term foreign loans stood at US$2.67 billion in FY2022-23. It increased to US$3.37 billion in FY2023-24 and further rose to US$4.09 billion in FY2024-25.

During the previous Awami League government, substantial foreign financing was obtained for implementing large infrastructure and mega projects.

Foreign assistance was also used significantly in various development programmes.

According to historical ERD data, foreign aid commitments stood at US$10.74 billion in FY2023-24, while disbursement amounted to US$10.28 billion.

Dr Zahid Hossain, former lead economist of the World Bank’s Dhaka office, told BSS that there had been a tendency in the past to take as much foreign borrowing as was available.

Now, decisions on obtaining foreign assistance should be based on assessing the actual necessity of various development projects, he said.

He said financing from the World Bank’s International Development Association (IDA) and Japan was no longer available on terms as easy as before.

Therefore, he said, the government must also consider whether the country has the capacity to repay such loans in the future.

“The government must be extremely cautious in selecting development projects, taking into consideration the country’s capacity to repay both the principal and interest on loans,” Dr Zahid Hossain added.

At the same time, he stressed the need to genuinely implement financial-sector reform initiatives and ensure that their benefits become visible.

According to him, before undertaking a project, its potential financial and economic benefits and the expected return against the investment need to be considered seriously.

Meanwhile, total foreign aid disbursement stood at US$8.07 billion in FY2025-26, down from US$8.57 billion in the previous fiscal year.

Disbursement of project assistance declined to US$8.02 billion from US$8.52 billion. However, grant disbursement increased to US$553.95 million from US$454.56 million in the previous fiscal year.

The World Bank was the largest source of foreign assistance in FY2025-26, disbursing US$2.07 billion during the period. The Asian Development Bank (ADB) followed with US$1.91 billion.

Economists believe that an increasing portion of the loans taken during the previous government has now become repayable.

Therefore, it is essential to accelerate implementation of ongoing projects, complete them within the stipulated timeframe and ensure the expected economic benefits from those projects.

They also recommended negotiating with development partners for loans on better terms and, where possible, prioritising concessional or soft-term financing.

Inflation fell for the second consecutive month in August, dropping to 8.26 percent, its lowest level in the past ten months, according to the data published by the Bangladesh Bureau of Statistics (BBS).

Food inflation fell sharply, while non-food inflation edged up. In August, food inflation stood at 7.02 percent, down from 7.16 percent in July, according to BBS data.

Non-food inflation, meanwhile, rose to 9.32 percent last month from 9.28 percent in July.

Point-to-point inflation of 8.26 percent means goods or services that cost Tk 100 in August last year cost Tk 108.26 in August this year.

The government has set a target of keeping annual average inflation at 7.5 percent in fiscal year 2026-27, which began on 1 July.

‘WHERE HAS COST OF LIVING FALLEN?’

AHM Shafiquzzaman, president of the Consumers Association of Bangladesh, said the latest figures do not reflect the reality of price increases.

“Electricity, fuel and essential commodity prices have all increased. There should be some reflection of that,” he said.

He pointed to recent price increases in sugar and rice, and noted that the pay scale for government employees has not yet been implemented.

“Where has the cost of living actually fallen?” he questioned, stating that people are cutting back on many things, including healthcare and medicines.

“In reality, people are simply eating less. If children do not receive adequate nutrition, we are creating an unhealthy generation,” he added.

SLOWER GROWTH DOESN’T MEAN FALLING PRICES

A BBS official, speaking on condition of anonymity, explained that the lower year-on-year rate does not mean commodity prices are declining.

“Prices are continuing to increase, but the rate of increase is comparatively slower than it was a year ago,” the official said, adding that prices had risen across almost all 12 major expenditure groups, with only isolated, seasonal exceptions.

Residential hotel rents fell in some cases due to the off-season, some electronics saw seasonal clearance discounts, and certain winter clothing items were marked down as they moved out of peak season.

The official, however, said these were isolated cases that did not change the broader trend of rising prices, and that a detailed sector-wise analysis would be needed to pinpoint the precise drivers of current inflation.

NO CLEAR SIGN INFLATION IS EASING

Md Deen Islam, professor of economics at the University of Dhaka, cautioned against reading the year-on-year dip as a sign that inflation is genuinely coming down.

“I would say that it is coming to a steady state,” he said, adding that the effects of the central bank’s contractionary monetary policy may still be working their way through the economy due to a lag in policy transmission.

The professor also commented that the rise in monthly inflation was concerning.

If the government wants to meet its FY27 inflation target of 7.5 percent, he said, the monthly rate would need to fall to around one percentage point.

If the monthly rate remains around two percentage points, achieving the government’s inflation target will become difficult, he added.

The economist linked elevated non-food inflation partly to the prolonged energy crisis, and warned that recent wage increases for lower-income government employees could add further demand-side pressure on prices in the coming months.

He called for better coordination between the government’s energy, monetary and exchange-rate policies, along with clearer efforts to manage inflation expectations.

“The government needs to demonstrate that the policies are actually working and that the problems are being addressed. At this point, we are still not seeing any clear sign that inflation expectations are coming down,” he said.

The government is losing around Tk4,000 crore in annual revenue due to illegal charging of battery-run autorickshaws, with more than 48,000 informal or illegal charging points operating in Dhaka alone, Home Minister Salahuddin Ahmed told parliament today (7 September).

Although an estimated 50-80 lakh battery-run autorickshaws operate nationwide, there are only around 3,300 legal charging points, he said.

The minister disclosed the figures in response to an urgent public-importance notice under Rule 71 of the Rules of Procedure in parliament. Reserved women's seat MP Rehana Akhter Ranu submitted the notice on the "uncontrolled operation of autorickshaws".

Salahuddin said battery-run autorickshaws, e-rickshaws and other electric three-wheelers have become an important part of urban and rural transport over the past decade. But their rapid and largely unregulated growth has increased pressure on the power system, roads and environment.

The electricity needed to charge the vehicles could account for around 5% or more of the country's total generation, he said. Large-scale simultaneous charging is also putting pressure on local distribution networks, while illegal commercial use of residential connections is overloading transformers and distribution lines.

Road safety and environmental concerns

Salahuddin said the unregulated operation of autorickshaws is also increasing traffic congestion and road accident risks.

According to data presented by him, battery-run autorickshaws accounted for 13.54% of the vehicles involved in 6,729 road accidents recorded in 2025.

Unregistered vehicles, untrained drivers, faulty designs, defective brakes and lights, speeding and the operation of slow-moving vehicles on highways are among the factors increasing accident risks, he said.

The minister also raised concerns over unsafe handling and informal recycling of lead-acid batteries, which can cause soil and water pollution. Child labourers face particular health risks, while agriculture and poultry production are also being affected, he said.

Autorickshaws to come under regulation

The government is formulating a policy to bring autorickshaws under a regulated system. Authorised vehicles will have number plates and QR codes, while drivers will be registered, trained and gradually brought under licensing.

Routes, vehicle numbers and movement will also be regulated, with a digital system planned to track vehicles and batteries.

Ranu said she did not seek a ban on autorickshaws but their regulation. She proposed moving them from major roads to secondary routes, introducing solar-powered charging, making BRTA registration mandatory and introducing zone-based operation in Dhaka.

Salahuddin said the policy would balance employment, environmental protection and traffic management.

The minister also informed the parliament that 50 AI-based traffic cameras are operating at 17 intersections in Dhaka, with another 200 being installed under the Ramna and Tejgaon traffic divisions.