The Russian economy runs a risk of going "berserk" if it is run ​to focus entirely on the needs of the military-industrial complex, President Vladimir Putin's international development envoy was quoted ‌as saying on Tuesday.

The comments by Boris Titov to business news outlet RBC were a rare sign of concern in Kremlin circles about the increasing pressure on the slowing economy to secure a victory in the 4-1/2-year war in Ukraine.

Titov, appointed in 2024 as Putin's special representative to international ​organisations for achieving sustainable development goals, is a wealthy businessman who used to own Russia's leading producer of sparkling wine. ​He led an influential business lobby and ran for president in 2018.

"Military and civilian economies have ⁠always existed in symbiosis everywhere. Many technical inventions that are useful for all originated within the military-industrial complex. The key ​lies in maintaining balance," Titov told RBC.

Russia has hiked taxes, embarked on property redistribution, welcomed contributions from businesses to finance the ​war, and, most recently, threatened business owners who are not doing enough to protect their facilities from Ukrainian drones.

War hawks and some government officials often refer to the reorganisation of the Soviet economy under dictator Josef Stalin during World War Two as a model, citing the wartime slogan "Everything for the ​front, everything for victory".

'BERSERK' MODE IS TIME-LIMITED, TITOV SAYS

This approach is met with cautious but growing resistance from various sectors.

"This ​is not an economy at all, it's a kind of 'berserk mode' that can only exist for a very limited time, and the necessity of ‌which ⁠should be considered very carefully," Titov said on the eve of a major economic forum that Putin will attend this week in Russia's Far East.

RBC, which conducted the interview, noted that the term berserk derived from mythological Norse warriors who entered a trance-like state, possibly drug-induced, that enabled them to fight ferociously and ignore pain.

The Russian economy is expected to grow at only 0.4% ​this year, and many non-military ​sectors are stagnating or shrinking. ⁠Ukrainian attacks on economic targets such as refineries, online retailers and oil and grain export infrastructure may push this growth rate even lower.

Titov's comments echo a statement by Moscow's technocrat mayor Sergei ​Sobyanin, who argued last month that "killing a normal economy is equivalent to killing the whole ​country".

Andrei Klepach, the ⁠chief economist at the state development bank, lost his job last month after highlighting the economic challenges posed by the war in a public speech.

Russia will hold a parliamentary election this month, from which the only political party calling openly for an end to the war ⁠had been ​barred. Opinion polls show growing fatigue from the war and support for ​a peace settlement.

Such sentiment is being exacerbated by persistent rumours of a large-scale post-election military mobilisation for a final push to seize the whole of the Donbas ​region of Ukraine. The Kremlin has called such rumours a hoax.

US oil company North American Blue Energy Partners will take over some oilfields previously controlled by several Chinese companies ​and a Russian firm, two US officials told Reuters on Monday.

The takeover will be part of a sweeping oil production agreement that President ‌Donald Trump announced with Venezuela, they said.

The projects were among 14 contracts newly granted to US-backed North American Blue Energy Partners, according to the officials. NABEP was previously owned by US oil tycoon Harry Sargeant and is now controlled by Venezuelan businessman Alejandro Betancourt.

"Venezuela is blessed with an abundance of natural resources, hardworking people and untapped potential," Betancourt said in a statement, confirming the deal. "This ​transaction will unleash that potential to the great benefit of both Venezuelans and Americans."

NABEP said it will have operating control of the business and the ​US government will have holding rights to a 35% stake in the company, alongside "preferential access" to 20% of the company's production ⁠at cost.

The White House said NABEP has also granted the US Department of State the right of first refusal to purchase the remaining 80% of its production.

Last ​week, Trump announced that the US had secured access to some 64 billion barrels of Venezuela's proven oil reserves through a partnership with private business.

The arrangement gives US companies a ​foothold in some of Venezuela's strategically important oil assets while displacing Chinese and Russian interests that have long played a major role in the country's energy sector. It also gives Washington a direct role in determining who produces and sells Venezuela's oil, as the Trump administration seeks to reshape the country's oil industry and bring its vast reserves closer to US economic and geopolitical ​interests.

The US will also have veto power over NABEP's board and directors and has stipulated that a majority of the board must be American citizens, the White House ​added.

NABEP is expected to control a total of 17 projects in Venezuela that it plans to develop and ultimately use to supply oil to the US Fourteen of those projects will ‌be newly ⁠granted by the Venezuelan government, the officials said.

Five of the 14 fields have been operated by Chinese companies under a model promoted by then-President Nicolas Maduro, while one was previously operated by a Russian company, the officials said.

Two of the projects have been operated by China Concord Resources, which was sanctioned by the US in 2019 for Iran-related activity. Another project was operated by Sinopec and another by China National Petroleum Corp, the officials said.

"Not only are we opening up new opportunities for the US government ​to benefit and for US operators to ​benefit, we are opening up the ⁠United States as the market for this oil which was previously being sent to China," the official said.

Two other projects were operated by affiliates of Alex Saab, a former close associate of ousted Venezuelan President Nicolas Maduro who is currently being held ​in US custody, the officials said.

Another oilfield was linked to a nephew of Maduro's wife, Cilia Flores, the officials said.

Trump ​told reporters earlier on ⁠Monday that the US was taking out "millions and millions of barrels of oil" that is currently being shipped to refineries in Texas and Louisiana, among other locations. He is to meet oil and gas retailers and refineries on Tuesday.

The officials said talks between Venezuela's interim authorities and representatives of the 2015 National Assembly are aimed at restoring a measure of ⁠constitutional order ​and addressing legal questions surrounding the country's transition.

The Trump administration views the 2015 assembly as the last ​Venezuelan legislative body elected and operating under the country's constitution, although it has no formal governing power.

One official said reaching an agreement with the 2015 assembly could provide a constitutional and legal basis for ​the broader transition, including economic decisions such as the revival of Venezuela's oil industry.

India’s economy grew at a faster pace than expected in the April to June quarter, official data showed on Monday, quelling fears that the Iran war would derail growth in Asia’s third-largest economy.

Gross domestic product rose 7.8 percent in the three months through June from the same period a year earlier, helped by a robust services sector, according to data from the statistics ministry. While this was down from a revised 8.6 percent recorded in the previous quarter, it was still above market expectations of 7.3 percent growth.

“Growth was led by services, but a key upside surprise came from manufacturing, which grew 9.2 percent,” Teresa John of Nirmal Bang Institutional Equities told AFP.

Prime Minister Narendra Modi called the figures a “herculean feat”, noting that it came despite “oil price shocks and supply chain issues”.

“Doomsayers were doomed and India bloomed... yet again!” the premier said in a post on X.

Monday’s reading cements India as the world’s fastest growing major economy, and is a shot in the arm for Modi’s government, which has been grappling with political setbacks and a series of delicate policy challenges.

The year kicked off on a strong note for India, with robust economic growth and progress on a much-delayed interim trade deal with the United States. That momentum, however, quickly stalled with a stalemate in talks with Washington. The Iran war has also raised energy costs as well as India’s import bill, stoking inflation.

New Delhi depends heavily on imports for its oil and gas needs, making it particularly vulnerable to the global energy shock caused by the conflict. Initial assessments of the Mideast turmoil prompted India’s central bank to cut growth projections for the current fiscal year. The projections were later revised slightly upwards.

The Indian government has so far shielded citizens from the worst of the war’s economic impact with limited and staggered fuel price hikes.

But analysts warn that this may not hold given renewed tensions in the Mideast and consistently elevated global crude prices. Modi has had to face rising anger in recent months over government accountability, education and a lack of well-paying jobs for the millions of graduates that join the workforce every year.

Weeks of massive student protests forced the resignation of education minister Dharmendra Pradhan in July over a national exam scandal and have placed Modi on weaker political footing ahead of key state elections next year.

Policymakers have also struggled to prop up the Indian rupee, which has been under pressure due to a range of factors including fears of a higher current account deficit and foreign investors dumping Indian shares.

India’s central bank and finance ministry have launched a flurry of steps to woo dollar inflows -- including a deposit scheme for non-resident Indians that has brought in over $65 billion as of late-August.

But this has done little to salvage the sinking rupee, which after recovering has continued to see sustained pressure.

Sri Lanka’s inflation hit a 38-month high of 8.0 percent as prices of food and other essentials rose across the board, the government’s statistics office said on Monday.

The annual inflation rate in August compared with 7.3 percent last month and 1.2 percent a year ago, according to the Department of Census and Statistics.

“This month’s inflation was mainly driven by increases in the price index for transport, housing, water, electricity, gas and other fuels,” the department said.

Sri Lanka has hiked fuel prices by about half since the Middle East war triggered a surge in global energy prices in the import-dependent nation.

The island recorded deflation of 0.3 percent in July 2025, and prices have risen steadily since then.

Sri Lanka has warned that any prolonged conflict in the Middle East could threaten its fragile economic recovery from the meltdown of 2022, when the country ran out of foreign exchange to finance essential imports.

The government told the International Monetary Fund (IMF), which approved a $2.9 billion bailout for Colombo in March 2023, that sustained high energy prices could undermine efforts to recover from the country’s worst economic crisis.

Under the IMF-backed reforms, Sri Lanka is required to ensure cost recovery in fuel and electricity pricing while limiting subsidies that strain public finances.

Sri Lanka defaulted on its $46 billion foreign debt in 2022. Colombo has been drawing down the IMF bailout loan to stabilise the country since then.

China’s installed solar energy capacity has surpassed that of coal-fired power for the first time, the national energy body said Tuesday, hailing the milestone.

China, the world’s largest emitter of greenhouse gases that drive climate change, has pledged to peak carbon emissions by 2030 and achieve carbon neutrality by 2060.

“As of the end of July this year, China’s installed solar power capacity reached 1.286 billion kilowatts,” the National Energy Administration (NEA) said.

“For the first time, photovoltaic installed capacity surpassed coal-fired power, becoming the largest power source category in China,” it added.

China, the world’s largest emitter of greenhouse gases that drive climate change, has pledged to peak carbon emissions by 2030 and achieve carbon neutrality by 2060
The country’s coal-fired power installed capacity, the energy body said, stood at 1.285 billion kilowatts.

Solar generation rose 15.5 percent on-year in the first seven months of 2026 to 802.4 billion kilowatt-hours, about one-eighth of the country’s total, the NEA said in another statement. It did not detail in these statements what the total generation of coal-powered energy was for the first seven months of this year.

The NEA said China’s installed solar power capacity and power generation “have maintained a steady trend of rapid growth”, with it playing an “increasingly prominent role” in guaranteeing electricity supply and driving the energy transition.

Coal has been China’s key power generation source for decades and a key driver of its planet-warming emissions.

But the country’s coal-fired power generation fell by nearly two percent in 2025, despite rising energy demand in the world’s largest emitter, data reviewed by AFP showed in February. It marked the first decline in six years, with some analysts saying it was the first time on record that coal generation dropped at the same time as power demand rose.

China has seen an explosive growth in its renewable installation, with coal’s share in its energy mix edging down in recent years.

The country installed a record 315 gigawatts of solar power and 119 gigawatts of wind power capacity last year -- over 80 percent of total newly installed power generation capacity, according to the China Electricity Council.

The securities regulator has given its permission to Dominage Steel Building Systems to transfer 30.78 million ordinary shares to Akij Resources and two individuals, resulting in a significant reshuffling of the company's ownership.

The Bangladesh Securities and Exchange Commission (BSEC) gave its approval on August 27, paving the way for the proposed transfer, according to a regulatory filing on Sunday.

As per a negotiated deal, the shares will be transferred at a price of Tk 13 each, said BSEC spokesperson Md. Abul Kalam.

So, Akij Resources and two individuals will have to pay more than Tk 400 million to receive the shares of Dominage Steel.

The individuals who purchased the shares are Sheikh Jasim Uddin and Faria Hossain.

The company said the transfer would be executed outside the regular trading system as a matched transaction. A matched transaction is generally used for a predetermined block of shares between identified parties, rather than through buying and selling orders on the stock exchange.

Dominage Steel said it would inform the market once the share transfer is completed.

Earlier in April this year, Dominage Steel's board decided to sell ownership stakes at a negotiated price through an off-market transaction.

Upon completion of the regulatory process, a new board of directors will take over the management and operations of the company.

No company of the Akij Group has yet been listed on the stock exchanges. So, it will enter the secondary market through the acquisition of Dominage Steel.

Akij Resources holds a significant presence in the steel and construction sectors through its subsidiaries. Officially established in April 2020, it builds on the heritage of the Akij Group, one of Bangladesh's largest conglomerates.

Meanwhile, the stock of the listed steel manufacturer has climbed remarkably over the last year. It surged 401 per cent to Tk 86.2 between September 1 last year and July 28 this year. Later, the stock declined and closed at 63.60 on Monday, gaining 0.32 per cent over the previous day.

The market price of the shares to be transferred stands at Tk 1.95 billion.

As per the securities rules, the sponsor-directors of a listed company are required to jointly hold at least 30 per cent of shares. Hence, the shares will remain locked as sponsor holding.

Bangladesh's merchandise exports rose 13.14% year-on-year to $4.43 billion in August 2026, driven by strong growth in ready-made garments (RMG) and several non-RMG sectors, according to the Export Promotion Bureau (EPB).

Exports stood at $3.92 billion in August 2025.

During the first two months of fiscal year 2026-27, merchandise exports increased 5.43% to $9.16 billion from $8.69 billion in the same period a year earlier.
The RMG sector remained the main driver, with exports rising 13.92% to $3.89 billion in August. Cumulative RMG exports in July-August grew 5.12% to $7.50 billion.

Both major apparel segments posted double-digit growth in August, with knitwear exports rising 14.88% and woven garments 12.70%. For July-August, knitwear exports grew 6.17% and woven garments 3.81%.

Non-RMG sectors also recorded strong growth. Jute and jute goods exports rose 37.09% in August, followed by pharmaceuticals at 28.52%, leather and leather goods at 24.85%, printed materials at 24.83%, engineering products at 23.88% and other footwear at 15.29%.

During July-August, exports of printed materials increased 41.89%, pharmaceuticals 38.94%, other footwear 27.32% and jute and jute goods 22.26%.

Mahmud Hasan Khan Babu, president of the BGMEA, attributed the RMG export growth in August partly to a low base in the same month last year, when US reciprocal tariffs contributed to a 3% decline in exports to the US and a 10.43% fall in shipments to the European market. Compared with July 2026, August earnings actually fell by about $278 million, he pointed out.

However, he said the growth reflected the industry's resilience amid the ongoing gas crisis, high interest rates and adverse global trade conditions. Recent government policy support had also helped protect the industry. For a sustainable export recovery, he stressed the need for stronger policy support on energy security, lower interest rates and reducing the cost of doing business while improving the ease of doing business.

US remains top market

The United States, Bangladesh's largest export destination, recorded 26.09% growth in imports from Bangladesh in August. Exports to the US rose 11.90% cumulatively in July-August.

The United Kingdom regained its position as Bangladesh's second-largest export market, followed by Germany, Spain and the Netherlands, according to the EPB.

Infographic: TBS
Infographic: TBS

Among emerging markets, exports to Türkiye surged 141.03% in August, while shipments to South Korea and Saudi Arabia rose 42.37% and 42.09%, respectively.

The EPB attributed the growth to stronger demand in major markets, increased buyer confidence in Bangladesh as a sourcing destination and expanded production capacity. Higher exports of value-added products and efforts to diversify products and markets also contributed, it said.

The latest figures come amid a challenging global trade environment, with exporters facing weaker demand in some markets, shifting sourcing patterns and rising competition from other apparel-producing countries.

The EPB said continued growth in knitwear and woven garments, along with strong performances by pharmaceuticals, leather goods, jute products, engineering goods and footwear, demonstrated the competitiveness and resilience of Bangladesh's export sector.

RMG continues to account for the overwhelming majority of merchandise exports, highlighting the need to sustain growth in non-traditional sectors to diversify the export basket.

The monthly spending limit under Direct Operator Billing (DOB), a regulated payment mechanism that allows mobile customers to pay for smartphones and other specified goods and services using their mobile balances, has increased by 150 percent to Tk 5,000.

According to the Bangladesh Telecommunication Regulatory Commission (BTRC), the annual ceiling has also risen by 150 percent, from Tk 20,000 to Tk 50,000, in a move aimed at helping people without credit cards or bank accounts make purchases. Previously, smartphones could not be purchased through DOB.

The telecom regulator, following approval from Bangladesh Bank, has raised the limits for six months, according to documents reviewed by The Daily Star.

DOB allows customers to use their mobile phone balance as a payment source, similar to a credit or debit card. It is not a general-purpose mobile wallet and can only be used for specified goods and services.

BTRC officials and industry people said the higher limit would allow customers to purchase smartphones, SIM-based devices and routers, along with other eligible digital products and services. The higher ceiling could also enable smartphone purchases through instalment plans, with payments made from mobile balances.

So far, only Grameenphone has received approval under the revised ceiling. Other operators can also apply for approval, the regulator said.

“The government is trying to increase smartphone penetration, and this would allow customers who do not have access to cards or other banking channels to purchase handsets using their mobile balances,” said Tanveer Mohammad, Grameenphone’s new chief corporate affairs officer.

WHAT DOB CAN BE USED FOR

Customers can use DOB to pay for eligible digital products and services, including digital content, app and in-app purchases, online utility bills, e-ticketing, e-health services, government lotteries, online platform subscriptions and education platforms.

However, mobile balances cannot be used as unrestricted digital money.

The rules prohibit DOB transactions involving financial or speculative activities. Customers cannot use it to buy virtual currencies or similar items used in social media applications and games, including coins, points, credits, coupons, diamonds and gems.

Transactions involving apps that collect investments from the public, provide loans, store money or facilitate other financial transactions are also prohibited.

DOB cannot be used for gambling, casinos, lotteries, cryptocurrency or crypto-asset trading, foreign-exchange trading, stock-market trading or multi-level marketing activities.

For services provided by non-resident merchants requiring foreign-currency remittances, relevant approval from Bangladesh Bank’s Foreign Exchange Policy Department must be obtained where applicable.

LIMITS RAISED AFTER YEARS

The latest increase follows years of gradual expansion of DOB limits.

When DOB was introduced in Bangladesh in 2018, Bangladesh Bank set the monthly spending limit at Tk 600 and the annual ceiling at Tk 3,000.

In December 2025, the central bank temporarily raised the limits to Tk 2,000 per month and Tk 20,000 per year until June 2026. The BTRC subsequently allowed operators to provide the service under those higher limits, subject to Bangladesh Bank’s conditions.

Operators must ensure that digital products and services purchased through DOB are delivered and put measures in place to protect customers. They must also formulate refund and chargeback policies.

DOB operations will be subject to Bangladesh Bank inspections, while mobile operators will be treated as reporting organisations under relevant money-laundering and anti-terrorism laws.

Private firms can buy bad loans from banks, seize mortgaged assets and take over indebted companies under legal provisions readied for enactment, sources say about the desperate remedy for deep-rooted ailment.

A formal market is proposed to be created for buy and sale of bad loans from banks, at a time when commercial banks are burdened with high concentrations of non-performing loans (NPLs).

A new central bank-drafted law moves further to propose inviting both domestic and foreign investors to invest capital in the sluggish banking sector to give a shot in its arm.

The Bangladesh Bank has urged the finance minister to take necessary steps to place the proposed amendment to the Artha Rin Adalat Ain 2003 and the new Distressed Asset Management Act (DAMA) 2026 before parliament during its ongoing session, out of exigency.

The proposed amendment and new law are aimed at making the recovery of defaulted loans more effective, dynamic and time-befitting, while facilitating the management, restructuring and settlement of distressed assets of banks and financial institutions.

Bangladesh Bank Governor Md. Mostaqur Rahman has issued a Demi-Official (DO) letter to the finance minister requesting the enactment of the proposed amendments to the Money Loan Court Act as well as the proposed new DAMA during the ongoing session of parliament.

The central bank has already sent drafts of the two laws to the Financial Institutions Division of the Ministry of Finance for necessary action, according to a letter sent to the ministry.

In the letter, the central bank has said the proposed laws would help accelerate loan recovery, improve the quality of banks and financial institutions' balance sheets and strengthen good governance in the country's banking sector, roiled by past irregularities.

The banking-sector regulator has also sought the ministry's initiative to place the two legislative proposals before the ongoing parliamentary session with the belief that their enactment would contribute to financial stability and help accelerate overall economic activities.

The central bank chief also has written that, soon after assuming office, he took several effective initiatives to revitalise the economy, including reopening closed and capital-starved industrial units to create employment, restoring depositor confidence by reestablishing good governance in the banking sector, expanding the digital economy and raising foreign-exchange reserves to the desired level.

"Nevertheless, the high level of NPLs and distressed assets in the banking sector continues to undermine overall financial stability in the country," the governor notes.

The latest BB move comes as a high level of non-performing loans (NPLs) and distressed assets continues to pose a major challenge to stability in the country's banking sector despite the central bank's different policy supports.

The classified loans in the country's banking sector ballooned to Tk 5.89 trillion as of March 2026, accounting for 32.26 per cent of the entire loans worth Tk 18.25 trillion disbursed by all scheduled banks.

The main objective of the DAMA is to create a formal market for buying and selling bad loans. The law also aims to attract both domestic and foreign investors and strengthen the financial system.

The proposed DAMA would allow private firms to purchase bad loans from banks, seize mortgaged assets and take control of indebted companies.

The draft also proposes establishing an independent regulator, Distressed Asset Management Unit (DAMU), under the oversight of the central bank.

It would also have the authority to establish a special enforcement body, styled Distressed Asset Enforcement Taskforce (DAET).

The government has taken an initiative to enact the DAMA in line with recommendations from the World Bank, the International Monetary Fund (IMF) and the Asian Development Bank (ADB) to improve the efficiency of managing classified loans and distressed assets in the banking sector, according to officials familiar with the developments.

They also said the central bank recommended settling cases related to the Artha Rin Adalat Ain or Money Loan Court Act within the timeframe of six months.

The draft law also proposes forming Appeal Tribunal, determining reserve prices in auction, appointing recovery officer in execution cases and for filing appeal to increase the amount of deposit money.

Bangladesh's remittance inflow continued its upward trend in August, rising more than 22 per cent year on year to $2.97 billion, according to Bangladesh Bank data.

The inflow was $545 million higher than the $2.42 billion received in the same month a year earlier.

The latest monthly figure was also 3.77 per cent higher than the $2.86 billion recorded in July, the central bank data showed.

Among banks, Islami Bank Bangladesh received the highest remittance inflow in August at $550.89 million, followed by Bangladesh Krishi Bank with $291.91 million, BRAC Bank with $252.81 million, Trust Bank with $211.49 million and Agrani Bank with $162.08 million.

Despite the strong growth, monthly remittance inflows have remained below $3.0 billion for three consecutive months since May.

Bangladesh Bank officials attributed the rise to stricter crackdowns on informal hundi channels, improved exchange-rate policies and growing confidence among non-resident Bangladeshis in using formal banking channels.

Higher remittance inflows have helped ease pressure on the balance of payments and support the country's foreign exchange reserves.

According to Bangladesh Bank, gross foreign exchange reserves stood at $37.41 billion under its own calculation and $32.50 billion under the IMF's BPM6 methodology as of September 1.

At the end of July, the reserves stood at $36.42 billion under Bangladesh Bank's calculation and $31.60 billion under the IMF methodology.

Fuel shortages, production and supply-chain disruptions, difficulties opening letters of credit (LCs) and unchecked middlemen, rather than the newly approved pay scale, could drive up prices of essential commodities, businesses said today (1 September).

They said prices of sugar, edible oil, pulses, flour and refined flour should remain stable if supply is adequate and aligned with demand.

The observations came at a views-exchange meeting between the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and businesses involved in importing, wholesaling and retailing essential commodities at the federation's Motijheel office in Dhaka. FBCCI Administrator Md Fazlul Hoque chaired the meeting.

The discussion came amid concerns that the new pay scale could push up prices of essential goods.

Wholesalers and retailers said maintaining adequate supplies would be key to price stability and called for uninterrupted fuel supplies to production-oriented factories.

Mill owners said gas and electricity shortages were already disrupting production, while difficulties opening LCs were creating additional challenges for essential commodity importers.

Gholam Mawla, general secretary of the Moulvibazar Business Association, said the market could not remain stable unless imports and mill production continued without disruption. He called for urgent measures to resolve the fuel crisis and LC-related complications.

Pay bonanza for govt staff amid inflation, energy crisis
Mill owners' representatives also said domestic sugar prices had remained unchanged despite higher international raw sugar prices.

Traders called for stronger oversight across the supply chain to prevent unnecessary price increases.

Md Zakir Hossain, general secretary of the Bangladesh Supermarket Owners Association, suggested reducing the number of times products change hands before reaching consumers to lower supply-chain costs.

Business leaders also called for stronger price monitoring at wholesale and retail markets and mill gates, as well as law enforcement intervention where necessary to prevent harassment along the supply chain.

Md Abul Kalam Azad, organising secretary of the Consumers Association of Bangladesh, urged the government and businesses to ensure uninterrupted supplies and curb the dominance of middlemen.

The meeting also discussed government measures to keep essential commodities affordable.

A Trading Corporation of Bangladesh (TCB) representative said the state-run agency was selling essential commodities at subsidised prices to nearly one crore families through its family card programme. A Directorate General of Food representative said subsidised rice was being distributed to low-income people under the Food-Friendly Programme.

Businesses, however, urged TCB to strengthen its capacity to import directly or source from alternative suppliers rather than relying mainly on domestic companies.

In his closing remarks, Fazlul Hoque said the recommendations would be documented and placed before policymakers. He urged businesses to cooperate to ensure the new pay scale does not lead to unjustified price increases.

Merchandise shipments from Bangladesh grew 5.43 percent year-on-year to $9.15 billion in July-August, the first two months of the current fiscal year, riding on a moderate rebound in garment exports, according to data from the Export Promotion Bureau (EPB) today.

Also, in the monthly comparison, exports of goods grew 13.14 percent year-on-year to $4.42 billion in August this year.

However, exports declined by 6.30 percent in August compared with July, when earnings stood at $4.72 billion, the EPB data also showed.

The readymade garments (RMG) sector remained the principal driver of export growth, posting a 13.92 percent year-on-year increase to $3.89 billion in August 2027.

Cumulative RMG exports during July-August also increased by 5.12 percent, reaching $7.50 billion, the EPB said in a statement.

Both major apparel segments recorded notable growth. Knitwear exports rose by 14.88 percent, while woven garments increased by 12.70 percent in August. During July-August, knitwear and woven exports grew by 6.17 percent and 3.81 percent, respectively.

Several non-RMG sectors also delivered impressive performances, highlighting the country's export diversification efforts.

Among the major gainers were jute & jute goods (37.09 percent), pharmaceuticals (28.52 percent), leather & leather goods (24.85 percent), printed materials (24.83 percent), engineering products (23.88 percent), and other footwear (15.29 percent). Cumulative growth remained particularly strong in printed materials (41.89 percent), pharmaceuticals (38.94 percent), other footwear (27.32 percent), and jute & jute goods (22.26 percent).

The United States, Bangladesh's largest export destination, registered robust growth of 26.09 percent in August and 11.90 percent cumulative growth during July-August.

The United Kingdom regained its position as the second-largest export market, followed by Germany, Spain, and the Netherlands. Among emerging markets, Türkiye (141.03 percent), the Republic of Korea (42.37 percent), and Saudi Arabia (42.09 percent) recorded outstanding export growth.

Export growth was supported by stronger demand in major markets, increased buyer confidence in Bangladesh as a reliable sourcing destination, expansion of production capacities, growing exports of higher value-added products, and ongoing efforts towards product and market diversification, the EPB also said in the statement.

The continued growth of both knitwear and woven garments, together with robust performances of pharmaceuticals, leather goods, jute products, engineering products and footwear, reflects the increasing competitiveness and resilience of Bangladesh's export sector amid a challenging global trade environment, the EPB said.

The government has announced a special incentive package to encourage consumers to install rooftop solar power systems with battery storage, as part of its efforts to expand renewable energy and strengthen energy security.

The Ministry of Power, Energy and Mineral Resources issued a circular yesterday outlining the new scheme, which also came into effect on the same day.

Under the scheme, the cost of generating electricity from rooftop solar systems with battery storage has been set at a maximum of Tk 8 per unit. The benchmark is based on current market prices and recent tenders reviewed by the Power Division.

To make the investment more attractive, the government has added a 20 percent profit margin and an 11.25 percent premium to the production cost. This takes the final purchase tariff to Tk 10.50 per unit.

The average retail price of grid electricity is currently Tk 10.40 per unit, according to the latest decision of the Bangladesh Energy Regulatory Commission. Consumers who can install and operate the systems at a cost below the Tk 8 benchmark will be allowed to keep the savings as additional profit.

Under the Net Metering Guidelines 2025, consumers who install rooftop solar systems by February 28, 2027, and supply surplus electricity to the national grid will receive Tk 10.50 per unit for three years, until February 28, 2030.

However, systems installed after the February 2027 deadline will not qualify for the incentive.

Power distribution companies will maintain records of consumers participating in the scheme and measure how much electricity they supply to and receive from the grid. They will also manage the incentive payments.

The payments will be made directly to consumers through bank accounts or mobile financial services (MFS). Cash payments will not be allowed.

The government has also made it mandatory for all solar equipment, including panels, batteries, inverters and meters, to meet the technical standards set by the Bangladesh Standards and Testing Institution (BSTI) and the Sustainable and Renewable Energy Development Authority (SREDA).

Consumers seeking policy guidance or technical assistance can contact the Power Division’s One-Stop Service Centres or utility offices at the district and upazila levels.

The country’s leading commodity importers and processors have urged the government to ensure uninterrupted gas and electricity supply to their factories, warning that disruption could trigger serious supply-chain problems nationwide.

They made the call at a discussion on ensuring stable stocks, supply and prices of essential items held at the Federation of Bangladesh Chambers of Commerce and Industry’s (FBCCI) Motijheel office yesterday.

The country has been grappling with gas and power shortages in recent months, disrupting production across industries. The average daily gas supply fell to 2,235 million cubic feet per day in August, the lowest level recorded for the month in a decade, according to an analysis of gas-supply data from 2017 to 2026 by The Daily Star.

Shafiul Athar Taslim, director for finance and operation at TK Group, said one of the group’s two factories had been closed for two months because of the gas crisis and that this would ultimately have an impact on production.

Shafiul Athar Taslim, director for finance and operation at TK Group, said one of the group’s two factories had been closed for two months because of the gas crisis

In terms of gas allocation, he called on the government to ensure utility supplies for companies producing essential commodities just as it prioritises electricity and fertiliser production.

Otherwise, he warned supply problems could emerge during Ramadan, which is expected to begin in early February 2027.

Biswajit Saha, director of corporate and regulatory affairs at City Group, called on authorities to closely monitor the opening of Letters of Credit (LCs) for essential commodities such as sugar, wheat and lentils.

Stating that LCs are not being opened and the volume of LCs has declined, he said it was important to identify the factors behind the reduction.

With Ramadan approaching, he warned that if LCs are not opened by October or November, it may not be possible to import the required commodities within the necessary timeframe.

Biswajit also highlighted the impact of power and gas shortages on industrial production, saying many City Group industries are currently closed because of inadequate gas supply.

The gas shortage is also affecting mills that produce and supply essential commodities such as edible oil and sugar, said the City Group official, adding that this could affect the country’s ability to maintain the supply of these products.

Shafiur Rahman, adviser at Meghna Group of Industries, spoke about the recent rise in retail sugar prices by Tk 10-15 per kg.

He said around 99 percent of Bangladesh’s sugar consumption is dependent on imports, making domestic prices sensitive to developments in the global sugar market.

He also said international sugar prices have risen significantly, partly because higher crude oil prices can encourage reduced sugar output.

Golam Mawla, president of the Bangladesh Wholesale Edible Oil Traders Association, said the number of companies producing and supplying essential commodities has declined significantly over the years, from around 30-40 groups to only a few major players.

He urged the government to support these companies and address the gas, electricity, banking and regulatory problems affecting their operations.

He warned that if imports and production are disrupted and stocks fall, shortages will inevitably occur.

Keeping the upcoming Ramadan in mind, Mawla called on the government to engage directly with the major commodity companies, identify their problems, resolve gas and banking constraints, and ensure sufficient stocks in the market.

Addressing allegations that ‘syndicates’ and ‘middlemen’ are distorting the market, he said these terms should not be used as a substitute for addressing the “actual problems” in the supply chain.

Mohammad Ziaur Rahman, general manager for sales and marketing at Erfan Group, spoke about the recent price hike of aromatic rice, which is reportedly selling at up to 60 percent higher than a year ago.

Ziaur claimed that there has been a 20 percent decline in aromatic rice production compared with last year, largely due to adverse weather. Export was another factor behind the price rise.

Meanwhile, referring to the recent report of pay rise for government employees, FBCCI Administrator Md Fazlul Hoque called on essential commodities sellers not to hike prices unjustifiably.

A large portion of the population is engaged in the private sector and other professions, he noted. “Increasing the prices of essential goods such as rice, lentils, and cooking oil whenever salaries increase is by no means acceptable.”

He also said it is the social and moral responsibility of the business community to conduct business responsibly, keeping the interests of ordinary people in mind, and to play an active role in preventing unjustified price hikes.

The National Board of Revenue has been asked to find ways to meet a sharply higher revenue target as the government seeks to finance the additional expenditure arising from the new pay scale for public servants.

Prime Minister's Economic and Planning Adviser Professor Rashed Al Mahmud Titumir gave the directive at a meeting with NBR officials yesterday (1 September), according to officials present at the meeting.

The NBR has a revenue collection target of Tk6.04 lakh crore set for FY27 – nearly 46% higher than the Tk4.15 lakh crore collected in FY26. Officials said achieving such growth would be challenging as Bangladesh has never recorded revenue growth of more than 27% since independence.
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The government has instructed that the additional funds needed for the new pay scale must come from NBR revenue collection. "The adviser told us to achieve the target at any cost," a senior NBR official told The Business Standard on condition of anonymity.

Another official said, "The salaries of government employees have been increased, and we have been told that the NBR has to provide the funds."

The government announced the new pay scale on Monday, which will directly benefit around 24 lakh government employees and nine lakh pensioners. Full implementation is expected to cost the government an additional Tk1,05,580 crore annually.

NBR officials said the target would be difficult to achieve amid sluggish economic activity, production disruptions caused by gas and power shortages and declining imports, particularly of goods that generate higher import tax.

Revenue collection has already shown signs of weakness in the new fiscal year. Although September has begun, the NBR has yet to officially publish its July collection figures.

Requesting anonymity, an NBR official said VAT collection stood at Tk9,301 crore in July, down from Tk11,547 crore in the same month last year. Preliminary figures show Vat collection fell further to Tk8,362 crore in August, compared with Tk11,081 crore a year earlier.

Import tax collection has also declined year-on-year, officials said, without providing figures.

Repeated attempts to contact Adviser Titumir for comment were unsuccessful.

Experts also said the revenue target was unrealistic under the current economic conditions.

Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue (CPD), told TBS that the NBR's structural weaknesses and the prevailing economic environment would make the target difficult to achieve.

"The NBR has a capacity gap due to its structural weaknesses, while the current economic reality is not conducive to achieving the target. As a result, meeting the revenue target will be very difficult," she said.

She said the NBR had seen little meaningful reform, while the skills of its officials had not improved significantly. At the same time, effective measures had not been taken to expand the tax base, she added.

"The current government inherited an economy in poor condition. Inflation is high, business costs are elevated, investment is low, industries are contracting, and there is a fresh energy crisis. Imports have also declined. Naturally, VAT and tax collection cannot gain momentum when businesses are not doing well," Fahmida said.

The Asian Development Bank (ADB) has approved a $175 million concessional loan to expand reliable and affordable electricity access in Bangladesh’s Chittagong Hill Tracts.

The Sustainable Energy Development and Community Empowerment in the Chittagong Hill Tracts Project will modernise power distribution networks across 26 upazilas in Khagrachari, Rangamati, and Bandarban, according to a statement from ADB yesterday.

The project will construct six 33/11 kilovolt substations, adding 80 megavolt-amperes of capacity, build 5,032 kilometres of distribution lines, and upgrade 1,874 kilometres of ageing lines.

It is expected to benefit at least 88,000 additional households, including 35,000 from small ethnic communities, while avoiding at least 19,300 tonnes of carbon dioxide equivalent emissions annually.

Although Bangladesh has achieved 99 percent national electrification, grid access remains significantly lower in the hill region, with 49 percent in Khagrachari, 43 percent in Rangamati, and 41 percent in Bandarban.

ADB said the project aims to raise grid access across the region to 68 percent by 2032.

“Reliable electricity is a powerful driver of jobs, enterprise, education, health care, and community resilience,” said ADB Country Director for Bangladesh Qingfeng Zhang.

The project also includes a $2.72 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific. The government is contributing $36.54 million to the initiative, while the Bangladesh Power Development Board (BPDB) is providing $45.65 million.

Bangladesh Bank Governor Md Mostaqur Rahman has urged the government to take steps to place the proposed amendments to the Money Loan Court Act, 2003, and the proposed Distressed Asset Management Act, 2026, before the ongoing session of parliament.

The central bank governor made the request in a demi-official (DO) letter to Finance Minister Amir Khosru Mahmud Chowdhury on August 31.

Mohammad Shahriar Siddiqui, assistant spokesperson of Bangladesh Bank, confirmed the matter to The Daily Star.

In the letter, the governor said high levels of non-performing loans and distressed assets in the banking sector are hindering financial stability and economic activity.

Bangladesh Bank has already sent drafts of the two laws to the Financial Institutions Division of the finance ministry for necessary action, he said.

The proposed amendments to the Money Loan Court Act aim to make the recovery of defaulted loans more effective, dynamic and time-bound. The new Distressed Asset Management Act will provide a legal framework for managing, restructuring and resolving distressed assets held by banks and financial institutions, according to the letter.

The governor said the laws would help accelerate loan recovery, improve the quality of banks’ and financial institutions’ balance sheets, and strengthen governance in the banking sector.

He also assured the ministry that Bangladesh Bank would provide any necessary support in this regard.

The governor urged the ministry to take the necessary measures to place the two legislative proposals before parliament during the ongoing session, saying they are needed to ensure financial stability and revitalise economic activity.

Under the proposed amendments to the Money Loan Court Act, the governor suggested establishing an appellate tribunal with powers equivalent to those of the High Court; fixing reserve prices for auctions conducted under the law; appointing recovery officers to oversee execution proceedings in loan recovery cases; reducing the time limits prescribed under various sections of the Act to expedite case disposal; and increasing the mandatory deposit required to file an appeal.

The Bangladesh Bank today (1 September) resumed buying dollars from commercial banks after a three-month gap, purchasing $50 million at Tk122.75 as ample market liquidity and weak demand pushed the exchange rate lower.

The purchase from four commercial banks was the central bank's first since 20 May, a senior Bangladesh Bank official confirmed to The Business Standard.

The move came after the dollar rate had fallen amid strong supply of foreign currency and easing demand for import payments. Commercial banks were buying dollars from remittance houses at Tk122.30-Tk122.40 this morning, while settling letters of credit (LCs) at Tk122.50-Tk122.60.

A senior commercial bank official said the central bank's purchase at Tk122.75 sent a signal that it would support the dollar rate at that level.

Bankers had expected the Bangladesh Bank to intervene when the rate fell two weeks ago. However, another $100 million in government LC payments was added after 20 August, taking outstanding government payment obligations above $1 billion. The central bank may have held back from buying dollars because of the increased payment pressure, the official said.

Another senior banker said sharp fluctuations in the exchange rate over the past 15 days had left banks and clients uncertain about where the rate would settle. Many clients were seeking forward bookings, he added.

High supply, weak demand

Commercial banks currently have ample dollar liquidity, while pressure from LC payments has eased. Weak private-sector credit growth has also reduced demand for foreign currency.

As a result, excess supply amid subdued demand has been pushing the dollar rate down. Bangladesh Bank's latest purchase appears aimed at preventing a further decline.

Demand for dollars could rise somewhat next month as the Bangladesh Petroleum Corporation (BPC) has some payments due, a banker said.

Purchase information came late

There was no prior indication in the market that the Bangladesh Bank would purchase dollars today, according to a senior banker. Commercial banks were informed around 1pm.

Normally, the central bank informs banks of such purchases by around 11:30am. As a result, banks bought remittance dollars at lower rates in the morning and settled LCs at Tk122.50-Tk122.60.

Dollar rate rises after purchase

After the Bangladesh Bank bought dollars at Tk122.75 in the afternoon, several commercial banks raised their rates for remittance collection and LC settlements to the same level.

The purchase effectively pushed the dollar rate higher and signalled that the central bank was prepared to support it at Tk122.75.

The dollar rate had been falling again since Sunday. With no earlier intervention from the Bangladesh Bank, there had been little clarity in the market over where the rate would settle, he said.

The dollar rate climbed as high as Tk123.65 late last week after falling to Tk122 about two weeks ago, reflecting unusually sharp fluctuations over the past 15 days.

The government has cut import tax on green chillies and tomatoes from 61% to 20.50% following a sharp rise in their prices.

The Internal Resources Division (IRD) of the Ministry of Finance issued the order on 30 August and published it on the government website yesterday (31 August).

The lower tax rate will remain in effect for one month before rising to 30% for another month. After 60 days, it will return to the previous rate of 60%, according to the order.
Officials of the National Board of Revenue (NBR) were primarily involved in preparing the order on behalf of the IRD.

A senior NBR official familiar with the development told The Business Standard, "The prices of these two products have increased in the market recently. The reduction in import tax will create an opportunity to increase supply in the market, allowing consumers to purchase the products at somewhat lower prices."

Green chilli prices began rising in July and crossed Tk400 a kilogramme in some markets in August, according to media reports.

The government took the latest measure following the sharp rise in prices.

The new salary structure approved by the government for public sector employees on Monday could lead to a slight increase in inflation, says Prime Minister's Information and Broadcasting Adviser Zahed Ur Rahman.

He said, "Inflation is very high now, isn't it? It’s high. The inflation rate in Bangladesh has been high for a long time. In a country like ours, of course, there should be some inflation. If it's up to 5 per cent, up to 6 per cent, then it's good or okay.

"But for us, it has reached double digits, even crossed it. At the moment, it has decreased a little, at least that's what our data says."

The information adviser was speaking at a weekly press conference on the progress of different government projects in the conference room of the Press Information Department at the Secretariat on Tuesday, bdnews24.com reports.

Zahed said, "If this many people actually get an increase in their (public sector employee) salaries, there is a risk of some inflation. There are many senior employees who have reached close to the salary they will get in the new scale due to their salary increments.

“So, a lot of money will reach the people, but there are concerns about where the government will meet this expenditure, about where the money will come from, but while (the expenditure will increase, the government has a budget for that expenditure). It is not that the inflation rate increasing is impossible. There is a possibility of inflation increasing a bit.”

Regarding the implementation of the new salary structure, Adviser Zahed said: “The new pay scale has been announced, and a roadmap has been given on how it will be implemented step by step.

“I would like to mention two very significant findings. One is that if an employee has a child with special needs, he will get a monthly allowance of Tk 3,000. I claim this is a very groundbreaking step.”

He said, “I am not saying that Tk 3,000 is a lot of money. I am not saying that all problems can be solved with it. But we know that these children with special needs need special care, treatment, special schools. The state, this government, is recognising all this, and it will help them to some extent.

“We hope that as the state’s capacity increases—when the state recognises something that people are suffering from, they recognise that people have needs—we can hope that the amount of this allowance will increase soon. This is a very big deal.”

Regarding the salaries and allowances of government employees at the Grade-1 level, he said, “The second thing is that there has always been a reasonable criticism regarding the ratio between our Grade-1 - this calculation is available all over the world; if you search for it, you can find it - and the last grade—what is their compensation ratio? It is very high in Bangladesh, huge. The lower it is, the better.”

Stating that the government is trying to reduce the difference, Zahed said: “You will see that there is also an effort to reduce this disparity. The first 10 grades will increase step by step to a maximum of 100 per cent, and the next 10 grades will increase up to 142 per cent.

“Then the gap, the ratio, that we had between Grade-1 and Grade-20 will decrease. I think this is also a step to reducing inequality.”