The large-scale manufacturing rebounded sharply with a 14.5-percent expansion in June, the final month of the fiscal year 2026, according to official statistics.
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It provides a stronger-than-expected end to a volatile 2025-26 fiscal year marked by repeated contractions amid economic uncertainty.

The June spike in the Index of Industrial Production (IIP) of large-scale manufacturing suggests that the country's industrial sector may be regaining momentum after a prolonged period of weakness.

Large-scale manufacturing accounts for more than 11 per cent of gross domestic product or GDP of the country, making its performance an important indicator of broader economic activity.

The rebound, however, was not broad-based.

Much of the June growth came from the clothing industry, which carries a dominant 61-percent weight in the manufacturing index.

The textile sector, the second-largest component with an 11 -percent weight, remained almost stagnant during the month.

The concentration of growth in garments raises questions about the strength of the wider industrial recovery.

While the performance of the clothing industry provided a substantial liftoff to the overall index, several other manufacturing segments continued to struggle, suggesting that the recovery remains uneven.

"The manufacturing sector had a difficult fiscal year," says Dr. Zahid Hussain, an independent economist.

He goes on to say that industrial activity contracted in several months amid political uncertainty, the national elections and the fallout from geopolitical tensions, including the crisis in the Middle East centred on Iran.

Some industries are benefiting from stronger demand and export opportunities, while others continue to face subdued consumption, high production costs, financing constraints or weak investment.

The sharp rise in June, therefore, needs to be viewed in the context of the sector's performance over the entire fiscal year rather than as evidence of a fully established recovery.

The sector recorded negative growth in October, November, December, February, March and May. January and another month recorded virtually flat performance.

As a result, the strong June expansion came after months in which manufacturers faced weak demand, uncertainty over investment and disruptions to business activity.

Against this backdrop, the June increase of 14.5 per cent is significant.

It marks a sharp turnaround from the contractionary trend seen during much of the fiscal year and could indicate that manufacturers are responding to improving business conditions and stronger external demand, particularly for export-oriented products.

Among the 23 major manufacturing groups, a number of industries recorded noteworthy performances during June. The goodies include food products, leather, chemicals, pharmaceuticals, rubber and plastics, basic metals, electrical equipment, machinery, motor vehicles, other transport equipment, furniture and other manufacturing.

The performance of these industries points to some degree of breadth in the June recovery, although the dominant contribution from garments means the overall picture remains heavily influenced by one sector.

Several industries, meanwhile, continued to perform poorly. Among the baddies named are beverages, tobacco, wood products, paper and paper products, fabricated metal products, computers and electronics, and printing.

Bangladesh Bank (BB) is set to introduce an “e-Payment Credit” facility, likely today, to promote cashless payments and help customers manage temporary cash shortages.

Under the facility, eligible customers will be able to borrow between Tk 50 and Tk 10,000 to meet essential expenses through digital payments, according to BB officials.

The credit can be used to pay utility bills, mobile recharges, education and healthcare expenses, travel costs, taxes and government service fees, deposit instalments and insurance premiums.

Banks will initially pilot the facility for at least six months before launching it commercially. A commercial rollout will require an assessment of the pilot and approval from the respective bank’s board.

The facility is strictly for digital payments. Customers cannot withdraw the credit as cash, transfer it to a bank account or add it to a mobile wallet. The approved amount must be paid directly to the designated biller through an authorised digital payment channel.

Repayment periods will be seven, 15 or 30 days, with banks charging a prescribed service fee instead of interest.

For credit of Tk 50-Tk 250, the maximum service fee will be Tk 3 for seven days, Tk 4 for 15 days and Tk 6 for 30 days. For credit of Tk 7,001-Tk 10,000, the maximum fees will be Tk 35, Tk 70 and Tk 130, respectively.

Customers who repay on time will not face any additional interest or early-settlement charges. Penalties may apply to overdue payments but cannot exceed the applicable daily service fee.

Banks must complete the entire process -- including onboarding, credit approval, payment and repayment -- digitally, using secure authentication methods such as one-time passwords and two-factor or multi-factor authentication.

Banks may partner with mobile financial service providers, payment service providers and fintech firms to operate the facility.

The scheme will remain subject to BB’s rules on loan classification, risk management, customer protection, anti-money laundering and data security.

Years of overfishing, destructive fishing practices and damage to marine habitats are depleting Bangladesh’s fish stocks, with catches of hilsa and other marine species falling sharply.

The decline is increasingly hitting fishermen’s livelihoods, as poorer catches leave them struggling to cover fuel, food and other costs of each trip.

During a recent visit to the Alipur fish landing centres, Mizan Hossain, owner of the trawler FB Nurjahan, said its catch this year was at least 40 percent lower than last year.

He blamed widespread trawling in the sea.

“Trawling nets catch fish of all sizes and species. The smaller fish die as soon as they are caught in the nets,” he said.

Fazlu Gazi, former president of the Mahipur Fishermen’s Association near Kuakata, said hilsa catches this year were the lowest he had seen in four to five years.

“We give fishers advance payments every year. With catches falling so sharply, we are struggling even to recover that money,” he said.

Patuakhali District Fisheries Officer Bijoy Nandi also acknowledged a sharp decline in catches, saying it was not limited to hilsa.

“Hilsa catches have fallen significantly, and catches of other marine fish have also declined,” he said. “By our estimate, overall fishing is down by about one-third from last year.”

The situation is similar in Cox’s Bazar. Ismail Hossain, owner of Shah Jabbaria Fish Enterprise, said trawlers once brought 1.5 to 2 tonnes of hilsa from a single trip. Now, several trawlers are needed to collect the same quantity.

Each trip costs around Tk 4 lakh, including fuel and other expenses. Although trawlers catch other species, the overall haul is often so low that many operate at a loss, he said.

Mohammad Ramiz, known as Ledu Majhi, a Kutubdia resident who operates a trawler owned by Mahiuddin Company, said fishermen are spending long hours at sea for little return.

“There are hardly any fish in the sea. We cast our nets and wait for hours, but often catch very little,” he said.

Since the 65-day fishing ban ended on July 23 this year, his trawler has made 10 trips, spending about Tk 40 lakh and earning roughly Tk 42 lakh from fish sales. In the past, a trawler could land fish worth Tk 10 lakh to Tk 40 lakh on a single trip, he said.

Ledu blamed the decline partly on the growing use of trawling in shallow waters.

Once largely confined to large vessels operating in the deep sea, trawling is now also being used by wooden trawlers in shallower areas, causing damage to marine habitats and killing juvenile fish and even fish fry.

The fishermen’s experience is reflected in official data. According to Department of Fisheries (DoF) figures, Bangladesh’s marine fish catch rose steadily from 5.17 lakh tonnes in FY2009-10 to a record 7.06 lakh tonnes in FY2021-22.

The figure has since declined for four consecutive years. The provisional FY2025-26 figure of 5.15 lakh tonnes would be the lowest in 16 years, down 27 percent from the peak.

Mohammed Shariful Azam, senior assistant director of the blue economy section at the DoF, said the decline was closely linked to falling hilsa catches, which account for nearly 40 percent of the marine catch.

Talking to The Daily Star, Shariful identified pollution, changes in river and marine habitats, and overfishing as major factors behind the decline in hilsa.

Pollution is degrading rivers and breeding grounds, reducing the hatching and survival of hilsa juveniles, he said. Underwater shoals and sandbars, locally known as dubchar, have also formed in several areas, making migration routes shallower and obstructing hilsa movement between the sea and rivers.

Overfishing is adding to the pressure. More than 85 percent of the country’s roughly 30,000 artisanal fishing boats target hilsa, while years of excessive harvesting have depleted the stock.

The problem extends beyond hilsa. Shariful said the widespread use of behundi jal, or estuarine set bag nets, indiscriminately catches marine fish, particularly fry and juveniles. Despite repeated enforcement drives, controlling their use remains difficult.

Monofilament gillnets and illegal trawl doors and nets used in areas such as Barguna, Patuakhali and Kalapara are also contributing to the depletion of fish stocks, he added.

Shariful said marine fish stocks could gradually recover if fisheries management is strengthened, sea patrols intensified and fishing bans enforced more effectively. However, rebuilding depleted stocks would take several years.

He identified vessel tracking as a potential tool for strengthening monitoring. The Fisheries Monitoring Centre in Chittagong could play a key role if fishing boats are brought under a tracking system.

Discussions are underway with Bangladesh Satellite Company on the initiative, which Shariful described as a potentially major step. He also stressed the need to raise awareness among fishermen and boat owners.

The Bangladesh Bank has widened the scope of financing against foreign currency deposits held with Offshore Banking Units (OBUs), allowing such balances to be used as collateral for a broader range of loans in local currency.

The central bank issued a circular today (3 September) modifying existing provisions on the use of balances held in private foreign currency accounts and non-resident foreign currency deposit accounts as collateral.

According to the circular, issued by the Foreign Exchange Policy Department-1, balances held in private foreign currency accounts and non-resident foreign currency deposit accounts maintained under Sections I and II of Chapter 13 of the Guidelines for Foreign Exchange Transactions (GFET) may now be used as collateral against short-term working capital financing in local currency to resident companies, firms and individuals.

The balances can also be used as collateral against short-term finance or consumer finance in local currency for resident persons and non-resident Bangladeshis (NRBs), subject to compliance with existing regulatory instructions.

Previously, the provision allowed such foreign currency balances to be used as collateral only against short-term working capital financing in local currency for resident companies, firms and individuals.

The latest move is aimed at widening financing options against foreign currency balances maintained with OBUs and providing greater access to local-currency financing against such deposits.

The circular referred to an earlier Foreign Exchange (FE) Circular No 27, issued on 3 July 2025, under which OBUs could allow foreign currency deposits of non-resident account holders to be used by their respective Domestic Banking Units (DBUs) as collateral against financing to resident companies, firms and individuals.

It also reiterated that balances held in private foreign currency accounts and non-resident foreign currency deposit accounts may be used as collateral in accordance with the relevant provisions of the Foreign Exchange Regulation Act, 1947 and the GFET.

Bangladesh Bank said all other instructions contained in the earlier circular would remain unchanged.

Bangladesh’s fossil fuel import bill could rise by up to USD 2.8 billion in 2026, adding pressure on the country’s economy and raising energy security concerns as the current supply crisis risks deepening long-term dependence on imported gas, a new analysis by international research group Zero Carbon Analytics (ZCA) showed.

ZCA estimates that the additional imported fossil fuel spending in 2026 is equivalent to the cost of installing around 8 GW of rooftop solar, enough to increase generation capacity by around 25% on Bangladesh’s current 32 GW power grid.

Bangladesh’s LNG imports between January and August 2026 were nearly 13% lower than during the same period in 2025.

The sharpest decline came between July and August, when imports plunged by around 83%, from 0.63 million tonnes to 0.11 million tonnes, amid disruptions to supplies through the Strait of Hormuz.

But lower imports have not meant lower costs. If oil, gas and coal prices remain at the January–August average for the rest of the year, ZCA estimates Bangladesh’s fossil fuel import bill could be around 30% higher than in 2025.

The additional cost would be equivalent to around 10% of Bangladesh’s trade deficit and could add pressure on the taka, inflation and borrowing costs. If current fuel prices persist, ZCA estimates the country’s import cover could fall from 5.7 to 5.2 months, it said.

Around 64% of Bangladesh’s electricity generation depends on gas, leaving the power system highly exposed to LNG supply disruptions.

On 11 August, the power supply shortfall reached 3,592MW - around 20% of demand at the time.

The supply crunch is already affecting households and major industries. Some rural areas have reportedly experienced power outages lasting eight to 10 hours a day.

Bangladesh’s exposure reflects its growing reliance on imported energy. In 2023, around 46% of the country’s total energy supply was imported, while imports met 65% of its power needs in FY2024–25.

Nearly two-thirds of Bangladesh’s LNG supplies in 2025 passed through the Strait of Hormuz.
Doubling down on imported gas

To address immediate shortages, Bangladesh has sought LNG from multiple suppliers and the spot market.

The government approved two spot LNG cargoes for August and September and procured another eight cargoes from suppliers in the UK, Australia, Malaysia and Oman. It has also sought additional diesel supplies from India.

At the same time, Bangladesh is making longer-term commitments to imported gas, including an agreement to purchase 117 LNG cargoes from the United States between 2026 and 2038.

Long-term contracts, however, do not eliminate supply risks. Three major LNG suppliers to Bangladesh have declared force majeure on contractual obligations amid the current crisis, while the International Energy Agency projects a cumulative global LNG supply loss of around 140 billion cubic metres through 2030.

ZCA’s analysis points to rooftop solar as one option for reducing Bangladesh’s exposure to imported fuels and international price volatility.

Renewables accounted for just over 5% of Bangladesh’s electricity generation in 2025, with installed renewable capacity reaching 1.49GW.

According to IEEFA, a 1MW rooftop solar installation could save around $180,000 a year in imported fuel costs.

Bangladesh needs to add around 760MW of renewable energy capacity each year through 2030 to meet its 20% renewable electricity target. Yet only 358MW of renewable projects were under construction as of February 2026.

Bangladesh Bank Governor Mostaqur Rahman has said 25% of loans under its low-cost, easy-term pre-finance schemes would be disbursed this month, with full disbursement completed by December.

The impact of the low-cost financing on the economy would become visible next year, he said at a programme titled "A Cashless Ecosystem for Financial Inclusion" organised by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) in Dhaka today (3 September).

Mostaqur said agriculture and small and medium enterprises had been given priority under the pre-finance schemes, with a particular focus on reaching borrowers in rural areas.

"We will disburse 25% of the funds under the schemes this month and complete the disbursement by December. Its impact on the economy will be visible next year," he said.

The Bangladesh Bank earlier announced a Tk60,000 crore "Stimulus Package-2026" to facilitate credit flow to the private sector and support economic expansion.

Speaking about the Bangla QR payment system, the governor at the event said several large companies had sought an extension before its implementation deadline, but the central bank had refused to grant additional time.

"I had made it clear that not a single extra day would be given. Had they failed to comply, the regulator would have shut them down," he said. The government will make Bangla QR codes mandatory for obtaining trade licences in the future, he added.

According to the governor, the number of Bangla QR merchants has increased from around 8 lakh when the system was launched to 32 lakh currently.

He said wider adoption of Bangla QR could help curb extortion and increase government revenue by bringing more transactions into the formal financial system.

On inflation, Mostaqur said persistent high inflation had previously limited the scope for cutting the policy interest rate. He said he had examined inflation data and found scope for improvement in the way the data were generated.

"There was pressure because inflation was so high that the policy rate could not be reduced," he said, adding that inflation had not fallen as expected partly because of price pressures in two major products, without specifying them. He expressed optimism that inflation could eventually be brought down to around 7%.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have separately urged the government to suspend or withdraw a new restriction on knit fabric imports under the country's Import Policy Order 2026–2029.

In letters to the Ministry of Commerce, the two trade bodies raised concerns over Sub-clause 12 of Clause 25 of the policy, which states that "knit fabrics shall not be eligible for import".

They warned that the restriction could disrupt the normal operations of export-oriented readymade garment (RMG) factories and weaken their ability to meet international buyers' requirements.

In a letter to the commerce minister on 1 September, BGMEA President Mahmud Hasan Khan said global buyers regularly demand new products, specific quality standards, customised designs and faster delivery.

Factories often need to source specialised fabrics from overseas suppliers to meet those requirements, he said.

Restricting such imports could disrupt factory operations because certain grades, colours, textures and designs demanded by international buyers are not always available in the local market, according to the BGMEA.

BKMEA President Mohammad Hatem also called for the provision to be suspended or withdrawn.

He said imported knit fabrics had already arrived at Chattogram Port, with some shipments kept in open storage, while many exporters had completed the required import formalities.

The new restriction could create serious complications in clearing those shipments and fulfilling scheduled export orders, Hatem said.

He added that the measure would further increase pressure on factories already facing production disruptions due to ongoing gas shortages.

Modernising and expanding refining capacity of Eastern Refinery Limited, the country's lone facility for converting crude oil into refined petroleum products, is finally set to see the light of day. Besides directly reducing Bangladesh's reliance on imports generally in the energy sector, particularly for refined petroleum.

The Jeddah-based Islamic Development Bank (IsDB) will provide over $1 billion in financing for the modernisation project.

A financing agreement titled "Modernisation and Expansion of Eastern Refinery in Bangladesh" was signed between the Government of Bangladesh and the IsDB on Thursday (3 September).

Dr Md Mizanur Rahman, Additional Secretary of the Economic Relations Division (ERD), signed the agreement on behalf of Bangladesh, while Anasse Aissami, Director General of Country Programs, signed for the IsDB.

Prime Minister Tarique Rahman and IsDB Group Chairman Dr Muhammad Al Jasser were present at the signing ceremony.

The ERD stated that the project will be implemented by Bangladesh Petroleum Corporation (BPC) under the Energy and Mineral Resources Division.

This funding is set to elevate the ongoing development partnership between Bangladesh and the IsDB, which operates as an instrument of the Organisation of Islamic Cooperation (OIC) to new heights. According to the ERD, this marks the largest investment in a single project by the IsDB till now in Bangladesh.

Upon implementation, the refining capacity of Eastern Refinery – the country's primary oil refinery – will treble from the current 15 lakh tonnes to 45 lakh tonnes per annum.

The government expects the project to enhance fuel supply capacity, reinforce national energy security, and enable the production of eco-friendly Euro-5 standard petroleum products.

Tripling the refinery's capacity will significantly decrease Bangladesh's dependence on imported refined oil, thereby saving foreign currency and ensuring stability in the domestic energy supply chain.

Commitment to Continue Support

As one of Bangladesh's key multilateral development partners, the IsDB has historically extended support through grants, project loans, trade financing, private sector funding, and export credit guarantees.

Following the agreement signing, IsDB Group Chairman Dr Muhammad Al Jasser paid a courtesy call on Prime Minister Tarique Rahman, reiterating the bank's commitment to supporting Bangladesh's development priorities.

During the meeting, the prime minister emphasized the importance of concessional financing and assured full government cooperation to deepen the partnership between Bangladesh and the IsDB.

Chattogram customs house saw a strong rebound in revenue collection in August, with receipts rising 29.20% year-on-year to Tk7,092 crore after a 6.78% decline in July.

According to customs revenue statistics, the collection was Tk5,489.27 crore in August last year, meaning receipts increased by Tk1,602.73 crore this year.

The surge lifted cumulative revenue collection in the first two months of FY2026-27 to Tk14,017.68 crore, up 8.51% from Tk12,918.65 crore during the same period a year earlier.

However, the customs house remains well short of its two-month revenue target of Tk21,530.34 crore. The Tk14,017.68 crore collection leaves a deficit of Tk7,512.66 crore.

Revenue collection in July stood at Tk6,925.68 crore, down from Tk7,429.38 crore a year earlier.

The sharp turnaround in August came as port operations and import-export activities gained momentum, helping customs revenue recover from the sluggish start to the fiscal year.

"Revenue growth in August is positive. We are trying to make customs operations more dynamic to maintain this trend," Sharif Mohammad Al Amin, assistant commissioner and spokesperson for Chattogram Customs House, told TBS.

"Revenue collection depends heavily on import activities. If imports remain normal and the current growth trend continues, there is an opportunity to achieve the target," he added.

August rebound offsets July decline

The August increase more than offset July's year-on-year decline, leaving cumulative revenue Tk1,099.03 crore higher than in the corresponding period of FY2025-26.

Customs officials said import activity is a key determinant of revenue collection, as duties and taxes on imported goods account for a major share of Chattogram Customs' receipts. The value and volume of imports, along with applicable duties and taxes, directly affect collections.

Tk81,471cr collected last fiscal year

Chattogram Customs House collected Tk81,471.37 crore in FY2025-26, registering 12.37% growth from the previous fiscal year.

As Chattogram Port handles the bulk of Bangladesh's international maritime trade, its import activity has a direct bearing on customs revenue.

The strong August performance offers some relief after July's decline. But with a Tk7,512.66 crore shortfall against the two-month target, customs will need sustained revenue growth in the coming months to close the gap.

Bangladesh retained the second position in garment exports to the US market in the January-July period this year as China’s apparel exports to the American market fell at their steepest rate.

Earlier, in January-February this year, Bangladesh overtook China for the first time in garment shipments to the USA as the Trump administration imposed higher tariffs on imports of Chinese garment items.

Also, in the January-July period of this year, Bangladesh retained its position although the country’s garment exports to the USA fell 6.50 percent year-over-year to $4.66 billion because of lower demand for locally made apparel in the American market, according to data from the Office of Textiles and Apparel (OTEXA), the data provider of global apparel imports by the US.

In July this year alone, Bangladesh’s garment exports to the US fell 10.73 percent, according to the OTEXA data.

Also, overall US apparel imports fell 8.65 percent year-on-year in January-July 2026, totaling $41.83 billion.

China’s shipments of apparel to the US fell 34.21 percent year-on-year to $4.55 billion, while in the case of India, they fell by 25.77 percent to $2.45 billion, and Pakistan’s by 5.60 percent to $1.26 billion.

At the same time, garment shipments from Vietnam fell by 1.03 percent to $9.36 billion.

Meanwhile, Indonesia posted a gain of 2.76 percent year-on-year to $2.74 billion and Cambodia a rise of 10.48 percent to $2.62 billion, the OTEXA data also said.

By piece count, Bangladesh, China and India’s apparel exports to the US fell by 4.34 percent, 24.17 percent and 24.02 percent, respectively.

But unit prices increased to some extent for Vietnam, Indonesia and Cambodia.

Unit prices fell across the board, led by China at 13.24 percent, and in the case of Bangladesh, the rate fell by a moderate 2.26 percent.

Fresh LP Gas, a subsidiary of Meghna Group of Industries (MGI), has expanded its liquefied petroleum gas (LPG) transportation capacity by adding a third carrier to its fleet.

The newly added MT Mercantile-65 can carry 2,000 tonnes, raising the company’s total in-house LPG carrier capacity to 6,000 tonnes, according to a press release.

Fresh LP Gas now operates three LPG carriers, each with a capacity of 2,000 tonnes.

The new vessel will mainly transport imported LPG from Kutubdia anchorage and Chattogram outer anchorage to the company’s plants in Meghnaghat and Mongla.

The expansion will strengthen the company’s logistics capacity, allowing it to transport more imported LPG and distribute it more efficiently across different regions. It is also expected to help ensure a more reliable LPG supply across the country.

“Meeting the country’s growing LPG demand requires a more reliable supply system,” said Tanvir Mostafa, director of MGI.

He said the company would continue investing in transportation and logistics capacity to support LPG supply and strengthen energy security.

Abu Sayed Raza, chief marketing officer of Fresh LP Gas, said the additional carrier would help the company maintain year-round supplies, meet rising demand and expand distribution to underserved areas.

The trustee board of Vanguard AML Rupali Bank Balanced Fund has approved a proposal to voluntarily convert the closed-end mutual fund into an open-end scheme, potentially improving liquidity and providing unitholders with a more flexible exit option.

According to an official disclosure issued by the Investment Corporation of Bangladesh (ICB), the fund's trustee approved the conversion proposal submitted by its asset manager, Vanguard Asset Management Ltd (VAML), in line with the Bangladesh Securities and Exchange Commission (Mutual Fund) Rules, 2025.

The fund will seek unitholders' approval for the proposed conversion at a Special General Meeting (SGM) scheduled for 26 October 2026 at 11:00am at RAOWA Convention Hall in Mohakhali, Dhaka.

Unitholders will vote at the meeting on whether to proceed with the conversion of the closed-end fund into an open-end scheme.

The trustee has set 4 October 2026 as the record date, on which trading of the fund's units on the stock exchanges will be suspended until further notice to determine the list of eligible voters.

The conversion initiative comes at a time when the fund has shown signs of a financial turnaround. After grappling with net losses since 2022, the fund reported a significant recovery in the first half of 2026.

For the January–June period, the earnings per unit (EPU) stood at Tk1.19, a sharp reversal from a loss of Tk0.57 in the same period last year. The recovery was particularly strong in the second quarter (April–June), which contributed Tk0.91 to the EPU.

Despite the earnings rebound, the fund's cash flow remains under pressure, with a negative net operating cash flow per unit of Tk0.68 for the first half of the year.

As of 30 June 2026, the Net Asset Value (NAV) per unit at market price was Tk9.57, while at cost price, it stood at Tk10.72. Listed on the Dhaka Stock Exchange in 2016, failing to declare any dividends since 2024.

Market observers believe the shift to an open-end structure will be a major relief for investors, as closed-end funds in Bangladesh have historically traded at steep discounts to their NAV. In the last trading session on 3 September, the fund's unit price closed 1.25% higher at Tk8.10 on the Dhaka bourse.

The country's premier bourse ended a volatile week with marginal gains as a mid-week surge in bargain hunting successfully offset heavy selling pressure seen in the early sessions.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) inched up by 6 points, or 0.11%, to settle the week at 5,662 points.

Despite the fragile recovery, the market witnessed a "tug-of-war" between opportunistic buyers and cautious sellers. The blue-chip DS30 index followed the broad index's lead, gaining 5 points to close at 2,140. However, the DSE SME Index faced a setback, dropping 26 points to settle at 1,046.

Market participation saw a slight improvement, with the daily average turnover rising by 6% to stand at Tk608 crore.

EBL Securities, in its weekly market review, said the market came under heavy selling pressure at the beginning of the week amid concerns that persistent domestic headwinds could hurt corporate earnings. The absence of fresh positive catalysts also pushed the DSEX below the 5,600 mark after around two months.

The market, however, received some respite in the middle of the week as bargain hunters accumulated beaten-down shares following favourable remarks from regulatory authorities regarding long-term structural reforms. The recovery attempt lost momentum in the final session as weak conviction over the market's direction triggered quick profit-taking.

Sheltech Brokerage Limited said market performance was largely shaped by the competing forces of buying interest and selling pressure. Optimism surrounding BSEC Chairman Masud Khan's recently proposed market-development initiatives supported buying, while concerns over the energy-supply crisis kept investors cautious.

The brokerage said renewed buying emerged after the BSEC chairman announced several market-development initiatives, but persistent selling pressure kept the market volatile. Going forward, progress on the proposed reforms, developments in the energy-supply situation, and upcoming earnings and dividend announcements from June-closing companies are likely to influence market direction.

Textile stocks dominated trading, accounting for 33.6% of total turnover, followed by general insurance at 12% and pharmaceuticals at 11.3%.

Sector performance was mixed. General insurance led the gainers with a 2.7% rise, followed by travel and jute, each gaining 1.4%. Services was the biggest loser, declining 2.1%.

Beximco Pharma, Malek Spinning, Paramount Textile, Beacon Pharma and Saiham Cotton were among the major stocks supporting the DSEX during the week.

Saiham Textile, Sharp Industries, Malek Spinning, Saiham Cotton and IPDC Finance recorded the highest average turnover.

Saiham Cotton led weekly gainers, rising 15.9%, followed by Nahee Aluminum at 11.1% and Bangladesh National Insurance at 10.5%. Safko Spinning gained 10.5%, while Nitol Insurance advanced 9.6%.

On the other hand, Sharp Industries suffered the steepest decline, falling 20.6%. Lovello Ice-cream dropped 15.7%, Apex Spinning declined 13.6%, Reliance Insurance Mutual Fund One fell 11.5%, and Tung Hai Knitting lost 10.6%.

After the IPO market has remained dry for a long time, the securities regulator is optimistic that new primary issues will be floated in the next few months.

Many of the aspiring issuers have already signed agreements with issue managers and are working to prepare financial statements. They include BRB Cables, Solar Equity Venture, Confidence Infrastructure, Super Star Electrical Accessories, and Shoeniverse Footwear.

The companies are yet to fix the amounts to be raised through IPOs or debt securities.

Apart from them, City Group has also signed an agreement with LankaBangla Investments to raise around Tk 15 billion from the capital market. The conglomerate is looking to raise funds through IPO, private equity, preference shares, corporate bonds, Sukuk and/or other permissible capital market vehicles.

"We hope a good number of companies will be listed in the next few months," said Masud Khan, chairman of the Bangladesh Securities and Exchange Commission (BSEC).

Apart from easing the public issue rules, the regulator is set to introduce a hybrid mechanism allowing direct listing and IPO for the same companies.

Talking to the FE, several issue managers said companies were approaching them to learn about the process of going public.

Among the issue managers, ICB Capital Management has signed an agreement with two companies, including BRB Cables, and is in talks with another five companies interested in issuing primary shares.

"The [market] scenario will change following the listing of some good companies," said Mazeda Khatun, managing director of ICB Capital.

Asked about the trend, a senior official of the Dhaka Stock Exchange (DSE) said many companies had already visited the bourse to discuss listing.

Sources at the DSE said seven companies intend to float IPOs, while another eight have shown interest in raising funds through bonds.

"Some of them have also shared bitter experiences with the previous long-standing process of getting clearance from the regulator to float shares," said an official who preferred not to be named.

The Public Issue Rules 2025 reduced the period for approving or rejecting an IPO proposal to within 55 days.

The factors prompting issuer companies to go public include the pressure of bank loan repayment and the reduced scope of receiving fresh loans from banks. That is why highly leveraged companies are moving towards raising funds from the capital market.

Besides the shorter IPO approval period, the scope for fair valuation of shares and further amendments to the public issue rules under consideration have also encouraged many companies to raise capital from the market.

The securities regulator is working on further amendments to the public issue rules.

Asked about this, Iftekhar Alam, chief executive officer of LankaBangla Investments, said that apart from signing an agreement with Shoeniverse Footwear, the firm was in talks with five other companies interested in going public.

Confidence Infrastructure plans to raise Tk 3 billion through an IPO to finance electric vehicle (EV) battery production, business expansion, debt repayment and investments in new sectors, including food.

The company has appointed UCB Investment Limited as issue manager for the proposed IPO.

Multinational companies operating in Bangladesh must be brought under the capital market, Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan said today (4 September).

The commission will first encourage such companies to voluntarily list on the stock market, but if they refuse, the BSEC has the legal authority to take steps in the public interest, he said while inaugurating a two-day workshop titled "Capital Market Products and Rules" for members of the Capital Market Journalists Forum (CMJF) at Subarna Gram in Narayanganj.

The workshop, organised by the BSEC, is being held on 4 and 5 September.

"There are many large domestic and multinational companies in Bangladesh. Unless these good companies are brought to the capital market quickly, the market cannot develop as expected," Masud said.

He said the BSEC would work to bring several large and flagship companies to the capital market within the next six months to one year.

"Come voluntarily. But if you do not come voluntarily, we also have the weapon to make it happen," he said.

The BSEC chairman said securities law allows the commission to direct certain companies to list in the public interest. A legal definition of "Public Interest Company (PIC)" will also be introduced for this purpose.

Calling on large companies to enter the capital market, Masud said listing gives a company a stronger corporate identity and establishes a market value for it.

That market value can then be used for acquisitions or mergers, while shareholders who want to exit a business can sell their shares more easily, he said.

He also pointed to succession problems in family-owned businesses, saying disputes often emerge among owners when businesses pass from one generation to another, sometimes leading to fragmentation.

Listing can provide an exit option for shareholders who do not want to remain involved in the business, he added.

The BSEC chairman also announced plans to introduce direct listing and a hybrid system to bring large companies to the market more quickly.

He said the existing IPO process takes too long. Under the proposed hybrid system, a company would raise new capital through one portion while directly listing existing shares through another.

Masud said the BSEC plans to introduce "extended audits" to simplify the IPO process.

He said auditors should verify not only whether a company's financial statements are accurate, but also whether its land, machinery, inventory, receivables and supplier information reflect the actual situation.

Under the proposed system, auditors would certify the authenticity of the assets and financial information submitted by IPO applicants. This would help the Dhaka Stock Exchange (DSE) complete its IPO scrutiny process more quickly, he said.

Noting that Bangladesh's capital market remains largely dependent on retail investors, Masud said institutional investment must be increased to make the market sustainable.

The BSEC plans to expand opportunities for provident funds and other funds to invest in shares as well as corporate bonds, he said.

In developed markets, pension funds and insurance companies are major investors, he said, adding that Bangladesh also needs to bring such institutional investors into the market.

Referring to the removal of the floor price after he took office, Masud said the move had prompted global index provider MSCI to move towards withdrawing special measures imposed on Bangladesh's market.

MSCI has said it will resume regular reviews of Bangladesh's index and implementation of corporate events from November 2026, he said.

The BSEC chairman also outlined plans to give the DSE greater powers, modernise market surveillance and introduce an artificial intelligence-based surveillance system.

On the development of the corporate bond market, Masud said the commission was working to reduce main-board listing fees. This would encourage banks and other institutions to list on the main board and gradually expand the country's bond market, he added.

The Bangladesh Securities and Exchange Commission (BSEC) has started discussions with major local and foreign companies and business groups to bring fundamentally strong and reputed companies to the capital market through direct listing.

As part of the initiative, the commission held a meeting with representatives of leading companies and business groups at its Agargaon office today (3 September) to discuss ways to bring such companies to the market through direct listing.

Representatives of Unilever, Nestlé Bangladesh, MetLife, bKash, Banglalink, KAFCO, Incepta Pharmaceuticals, Nagad, Meghna Group, PRAN-RFL, DBL Group, Abul Khair Group, ACI, Walton, Akij Resources and Confidence Group, among others, attended the meeting.

BSEC Chairman Masud Khan said the number of strong companies in Bangladesh's capital market remains inadequate. The commission therefore wants to bring reputed flagship companies to the market through direct listing to deepen and broaden the capital market.

He said greater participation by large and quality companies would help attract both domestic and foreign investment while creating more quality investment opportunities.

The BSEC has already approved the draft "Bangladesh Securities and Exchange Commission (Direct Listing of Securities on the Stock Exchange) Rules, 2026". The commission approved the draft at its 1,027th meeting on 1 September.

Under the proposed rules, eligible companies will be able to list directly on the stock exchanges by offloading shares held by existing shareholders, without issuing new shares through an initial public offering (IPO).

At today's meeting, the BSEC presented the eligibility criteria for direct listing, application and listing requirements, and the proposed price discovery process.

Representatives of companies, merchant banks, issue managers, stock exchanges and other stakeholders shared their views and recommendations on various aspects of the proposed rules. Discussions focused on bringing capable and reputable companies to the market while ensuring investor protection and maintaining market discipline.

Masud said listing on the capital market enhances a company's reputation and acceptability. It can also improve share liquidity and create scope for better valuation. Existing shareholders get an opportunity to liquidate their holdings, while the company can eventually raise capital from the market to finance future expansion.

Alongside direct listing, the BSEC is also considering a hybrid approach under which large companies could offload shares held by existing shareholders while issuing new shares to raise fresh capital.

Representatives of several companies expressed interest in entering the capital market through both direct listing and the hybrid approach, which combines the offloading of existing shares with the issuance of new shares.

The BSEC's initiative aims to bring large, fundamentally strong companies that have remained outside the capital market for years under the listing framework. The commission believes greater participation by such companies will increase the number of quality listed firms, deepen and broaden the market, and create more investment opportunities.

Aamra Networks Limited has recommended a nominal 0.10% cash dividend for its general shareholders only for FY2025, which amounts to just 1 paisa per share.

The announcement follows a disastrous financial year for the IT sector company, during which its earnings plummeted by 94%, and it struggled with a deepening cash flow crisis that has already relegated it to the "Z" category on the stock exchange.

According to the company's financial statements finalised in a board meeting on 3 September, the total dividend payout for general shareholders will amount to a mere Tk6.22 lakh against 6.22 crore shares.

In a move to preserve some liquidity, the company's sponsors and directors, who hold 3.07 crore shares, will not receive any portion of this dividend.

This token gesture places Aamra Networks among the lowest dividend-yielding companies on the Dhaka Stock Exchange, mirroring recent ultra-low payouts from firms like Acme Pesticide and National Feed Mill.

The company's financial health appears to be in a tailspin. For the 2024-25 fiscal year, the earnings per share (EPS) fell to a negligible Tk0.13, down from significantly higher levels in the previous year. The fourth quarter alone, spanning April to June 2025, saw the company incur a net loss of Tk5.95 crore.

The downturn showed no signs of abating in the 2025-26 fiscal year either. For the July-March period, revenue dropped by 22% to Tk55.85 crore, culminating in a nine-month net loss of Tk4.12 crore.

Management attributed this sharp decline to a combination of falling sales and a rise in operating expenses. However, internal sources point to a more systemic issue. A senior official from Aamra Networks, speaking on condition of anonymity, revealed that the company is facing an acute fund crisis driven by the non-recovery of dues from corporate clients. Since the company primarily serves large businesses, the failure of these clients to clear payments for services rendered has crippled the firm's cash flow.

This is reflected in the net operating cash flow per share, which stood at a negative Tk0.55 at the end of March 2026.

The 1 paisa dividend carries significant regulatory weight. Under current rules, a company declaring any dividend up to 5% is placed in the "B" category, while those paying 10% or more are eligible for the "A" category.

Moving out of the "Z" category is crucial for the company, as both "A" and "B" category stocks are eligible for margin loan facilities under the BSEC's new regulations.

Aamra Networks was downgraded to the junk category in February 2025 after it failed to disburse a previously approved 10% cash dividend for the 2023-24 fiscal year.

However, the path back to the "B" category remains complicated. The company failed to hold its Annual General Meeting (AGM) for the 2024-25 fiscal year within the legally stipulated time. Consequently, the date for the upcoming AGM is subject to consent from the honorable High Court. The record date for the 1 paisa dividend has been set for 24 September.

Aamra Networks had previously been an active player in the capital market, raising Tk56.25 crore through its initial public offering in 2017 and a further Tk93 crore through a rights offer in 2024 for business expansion.

Despite these capital injections, the company's recent operational paralysis has left investors wary. On Thursday, its shares closed marginally higher at Tk19.80, though market analysts warn that the company's reliance on "paper profits" and its struggle to collect actual cash from clients remains a major red flag for the bourse, according to the market insiders.

Amid the energy crisis that has been dragging on for more than a month, top business leaders have recommended bringing idle power plants run by coal, furnace oil and diesel back into operation as a short-term measure.

They say this would reduce some of the pressure on gas supplies used for electricity generation, allowing more gas to be diverted to manufacturing units.

The ownership of coal, furnace oil and diesel-fired power plants in Bangladesh is split between the government and private independent power producers. Private companies hold a large share of oil-based generation, while coal-fired capacity is driven by large public-private or state ventures.

The proposal by the business leaders is aimed at firefighting the immediate energy crisis triggered by the US-Israeli war on Iran, which has disrupted shipping through the Strait of Hormuz and severely affected liquefied natural gas (LNG) deliveries from the Middle East. Alternatively, refined heavy fuels and coal are available in regional markets, including Singapore, Malaysia and Indonesia.
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Businesses are going through a turbulent period as energy shortages, difficulties in accessing finance and growing uncertainty weigh on factory production and make firms cautious about new investment decisions.
Md Fazlul Hoque, Administrator to FBCCI

At a discussion at The Daily Star Centre in Dhaka yesterday, the business leaders also made recommendations for the medium and long-term energy plan.

“Many factories, especially apparel units, are now running at only 30 percent to 40 percent capacity because of frequent power outages,” Fazlee Shamim Ehsan, president of the Bangladesh Employers’ Federation, said at the discussion.

Frequent load-shedding is affecting the dyeing sections of garment factories, making it difficult for apparel manufacturers to achieve the exact colour of fabrics, as the dyeing process requires a continued flow of adequate gas pressure, he told the programme on current challenges facing the industrial sector and the way forward.

Shamim, who is also the executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the actual gas pressure was allocated at 15 PSI, but factories are currently getting as little as 1 PSI, which is inadequate to run the dyeing sections.

He said nearly 1,200 garment exporters in Fatullah area of Narayanganj industrial belt are facing the same problem.
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If I know I will miss a deadline by 20 days, I can plan for it. But I do not know how long an energy disruption will last, it is worse.
Fazlee Shamim Ehsan, President of Bangladesh Employers’ Federation

If the government can supply gas even at 7 to 8 PSI, it would be acceptable to businesses as they could run their factories and ship goods according to their commitments to international trading partners, he said.

For dyeing factories, the problem is particularly serious because the process depends on steady heat and steam. Frequent interruptions make it difficult to maintain production schedules and ensure the required colour and quality of fabrics, said the BKMEA executive president.

According to him, until now, factory owners have continued operating despite lower gas pressure and frequent load-shedding, hoping energy supplies will improve soon. However, it is becoming difficult for businesses to know how long they can continue operating under such conditions.

“If I know I will miss a deadline by 20 days, I can plan for it. But when I do not know how long the disruption will last, that is much worse,” Shamim said.

He believes the immediate response should focus on restoring energy supplies rather than waiting for a permanent solution. He also called for a clear short, medium and long-term energy plan so businesses know what to expect.

Fazlul Hoque, administrator of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said businesses are now going through a turbulent period as energy shortages, difficulties in accessing finance and growing uncertainty weigh on production and investment.

He said the current crisis is in some ways worse than the Covid-19 period because the pandemic affected countries at the same time, whereas the present situation is uneven, with some countries doing well while others are struggling.

During the pandemic, Bangladesh’s competitors were also facing widespread similar disruptions, meaning businesses in major competing countries were also dealing with similar difficulties, Fazlul said.

“But the current situation is different, with some countries operating normally or doing well while we are struggling with energy shortages, finance and other constraints.”

For businesses, he said, the problem is no longer confined to one sector. Gas and power shortages are disrupting factories, banks have become more cautious about lending and trade finance, while uncertainty is making entrepreneurs reluctant to commit fresh capital.

“The result is a slowdown in investment at a time when the economy needs new money and new activity,” said Fazlul.

The FBCCI administrator said the country needs to pay greater attention to investment in areas such as IT and AI-related sectors over the next two to three years and diversify where capital is being deployed.

Even if such investments do not immediately create large numbers of jobs, they would bring money and foreign currency into the country and help keep economic activity moving, he said.

Instead of waiting for large investments to return, Fazlul said Bangladesh should encourage a broader flow of capital, including foreign direct investment, so that money continues to circulate through the economy.

“But restoring production is an immediate concern.”

The immediate challenge, Fazlul said, is to take the initiative to operate furnace oil and coal-based power plants to mitigate the ongoing crisis. One option is to bring idle or underused power plants back into operation using alternative fuels such as furnace oil.

He said Bangladesh’s export economy has grown substantially over the years, creating jobs and building industrial capacity. But repeated shocks have also eaten into businesses’ reserves, leaving many companies with little room to absorb another prolonged disruption.

“The energy crisis has also exposed the limits of the banking sector’s ability to support struggling businesses.”

Fazlul said commercial banks have become overcautious and are demanding a lot of documents for loan approval. At the same time, some banks are not giving loans easily because of a trust deficit between bank management and exporters.

“Banks that once helped distressed factories recover are now dealing with problems of their own. As a result, businesses that need working capital or support to restart operations are finding it harder to get help.”

He argued that the biggest problem is no longer simply the high interest rates. For most businesses, the FBCCI administrator said, access to finance matters more than the rate itself.

“Banks have become more cautious and transactions that once took minutes can now take days as lenders scrutinise risks more closely.”

He said that caution is understandable given the condition of the banking sector, but prolonged delays can create another problem for businesses, particularly exporters who need timely trade finance.

For companies already facing production losses because of inadequate gas and electricity, delays in obtaining working capital can further restrict their ability to operate.

This combination of weak energy supplies, cautious banks and uncertainty is also making businesses more reluctant to invest, he added.

As I walked through the streets of Ho Chi Minh City last week, my second trip there within a month, I couldn’t help but wish Dhaka could resemble it. It was a delightful experience to walk on cleaner pavements without constant uneven impediments and hawkers. I neither had to encounter reckless battery-run rickshaws nor put up with beggars nudging at my car windows. I never had to worry about security while taking a stroll on the streets of Ho Chi Minh City late at night. I could smell the aroma of world-famous Vietnamese coffee as I passed cafes that are almost omnipresent. I took “Grab” cars for rides, with comfortable, spacious and clean vehicles that reminded me of the run-down Uber cars in Dhaka. Both are old cities, yet Ho Chi Minh City is so much more liveable because of these small things.

Vietnam is rapidly progressing to a developed economy. Singapore did this decades ago. Vietnam is on the same path, with much bigger geographical and demographic advantages.

Vietnam is having a spectacular growth phase. In its latest assessment report, Standard Chartered has raised its forecast for Vietnam’s GDP growth in 2026 to 9.5 percent and 11 percent for 2027. It has also lowered its inflation forecasts to 4.4 percent for 2026 and 3.3 percent for 2027. Vietnam’s foreign direct investment was a staggering $38 billion during the first seven months of 2026. These are enviable economic indicators for any country. The government is encouraging banks to support its target of achieving double-digit GDP growth. The State Bank of Vietnam (SBV) has recently allowed banks to exclude public sector project loans from their overall credit limits and single borrower limits.

Yet economic indicators alone do not tell the full story until one experiences Vietnam first-hand. I could feel the vibe of a country collectively focused on its growth journey. I could see large infrastructure projects everywhere, even when I travelled outside Ho Chi Minh City. I saw people rushing to their destinations in cars and motorbikes. I found shopping malls with world-class brands full of visitors, locals and tourists. I visited grocery stores as locals stocked up their shopping carts with wholesome food and vegetables.

Vietnam has also become an attractive tourist destination. Some places reminded me of Kolkata, with colonial-era buildings and museums full of rich history. The food is served artistically in Michelin-starred restaurants, though my strict “halal only” cuisine policy left me with limited choices of vegetarian dishes, full of local herbs enriched with heavenly aroma. Most people in Vietnam, even at professional levels, do not speak or understand English. That is not an impediment to its growth journey, as it did not stop China or Korea. Vietnamese professionals have an insatiable hunger to learn best practices from global experts and implement them, especially in banking. Many expatriates are now working in Vietnamese banks and companies, sharing their experience and training local talent, who are very hard-working, bright and promising.

Vietnam is rapidly progressing from a developing to a developed economy. Singapore did this decades ago, and now Vietnam is on the same path, with much bigger geographical and demographic advantages. With a deep-rooted supply chain powered by SMEs and households, global tech giants such as Samsung, LG and Foxconn have chosen Vietnam as major manufacturing bases. As companies continue to hedge their China dependence and leverage their connectivity with other markets, Vietnam is leaping forward by building top-class infrastructure, delivering good governance and achieving world-class productivity in manufacturing and electronics.

There is a lot to learn from the Vietnam story as it unfolds rapidly in front of our eyes, and not too far from us.

The Trump administration won backing from all G20 financial leaders except China's on Tuesday to act against "non-market" policies and distortions that cause over-reliance on exports and hinder growth elsewhere.The finance ministers' meeting clearly focused on China, while Washington used a parallel G20 gathering of industry titans and commerce ministers to make the case for a hands-off approach to AI regulation.
US Treasury Secretary Scott Bessent said he had been proven right when he warned other trading partners last year that tougher US tariffs would lead to an influx of Chinese goods diverted to their markets."We believe that non-market-based economies pushing out a never-ending stream of cheap exports is not sustainable," he told a news conference."I think that the fact that 19 countries did want to address this shows the sheer the enormity of the problem."A G20 chair's statement to conclude the meeting said the participants, except China's, agreed that countries should eliminate "non-market policies" that exacerbate imbalances.

"In particular, countries with excessive and persistent external surpluses should remove distortions that constrain domestic consumption and that result in an over-reliance on exports for growth," the statement said.

The two-day meeting of finance chiefs - which saw differences in tone between the US hosts and some European participants - came amid a global bond market selloff on worries over growing debt levels and inflation pressures.

European countries and Canada expressed dismay that Russia, invited by the forum's US hosts, attended for the first time since it invaded Ukraine in 2022.

CHINA'S MASSIVE EXPORT PUSH

China's massive export push has pressured economies across the globe, especially as the United States has imposed high tariffs on Chinese goods and outright bans on some products, such as Chinese vehicles.

With chronically weak demand, China has doubled down on exports of electric vehicles, semiconductors and other goods, and its total exports rose 23.9 percent in July year-on-year, prompting growing calls in Europe for tougher curbs on Chinese imports.

G20 member China has shown little interest in longstanding calls for it to reduce industrial subsidies and rebalance its economy, while its yuan currency remains significantly undervalued by most measures.

China's goods trade surplus with the European Union hit €360.6 billion last year, a 15 percent increase on 2024, and has expanded further this year.

European Economy Commissioner Valdis Dombrovskis said in a briefing that China is a major source of economic imbalances, but said the US and Europe both also had roles to play in evening things out.

In more direct comments, German Finance Minister Lars Klingbeil said the US- and Israeli-led Iran war, together with ongoing US tariff disputes, were also major causes of uncertainty holding back the global economy.

"Uncertainty is poison for economic growth," he said. "The tariff conflicts being pursued by the US, such as the current dispute with Canada, destroy trust."

Britain said it would maintain a pragmatic trade relationship with China, while navigating what it said was the sensitive issue of trying to reduce imbalances.

Canada, which has forged closer economic ties to China since the start of the year, was engaging with China no differently than other G7 countries and with "clear guardrails," its finance minister Francois-Philippe Champagne said.

International Monetary Fund Managing Director Kristalina Georgieva told Reuters she believed China recognized it needed to take action, but they were calling more for coordinated action with others, such as the United States reducing its growing fiscal deficits, which contribute to excessive import demand.
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Beijing has also leveraged its dominance in processing of critical minerals by placing export restrictions on rare earths in April 2025, a response to US President Donald Trump's tariffs that has also affected non-US companies.

Japanese Finance Minister Satsuki Katayama, speaking late on Monday, said she had told her G20 counterparts that arbitrary export restrictions on critical minerals were harming the global economy. The issue was included in the G20 chair's statement.

"We urge countries to avoid unnecessary export restrictions to ensure global supply chains continue to function normally," it said.

A selloff in global bond markets deepened on Tuesday, with Japan's 10-year bond yield hitting 3 percent for the first time since 1996 - the latest manifestation of investor concern about energy-driven inflation, potential monetary tightening and worsening fiscal conditions.

Treasury officials said Bessent had called for sound monetary policy to anchor inflation expectations and avoid excessive currency volatility during his meeting on Sunday with Bank of Japan Governor Kazuo Ueda.

"I have information that the market doesn't have, and it's my belief that the Japanese government and the BOJ will do the things that will lead to a stronger yen," Bessent told CNBC in an interview.

The remarks, which underline Bessent's recent calls for the BOJ to raise interest rates, were seen by the markets as aimed at bolstering the case for a rate hike at the BOJ's policy meeting on September 17-18.