Foreign companies can now obtain bank guarantees from any scheduled bank operating in Bangladesh to bid for international tenders.

Bangladesh Bank approved the facility on Thursday, allowing banks to issue the guarantees in foreign currencies for such tenders.

The facility is open only to foreign companies operating in Bangladesh, and each guarantee must be tied strictly to the project.

Banks must follow rules, risk-management requirements and lending policies when issuing the guarantees, while also taking collateral.

Companies receiving foreign currency against these guarantees can settle the amount in local currency.

The central bank directed banks to observe single-borrower exposure limits on these guarantees, with board or authority approval sought where needed.

Government-linked foundations have committed to creating more than one crore employment opportunities over the next five years, with Palli Karma-Sahayak Foundation (PKSF) alone pledging one crore, Finance and Planning Adviser Rashed Al Mahmud Titumir said.

"Another foundation had pledged 1,00,000 jobs, while women's development organisations, the Small Farmers Foundation and institutions working on poverty reduction had also submitted large-scale employment plans," he said after a meeting with heads of 22 foundations under different ministries and divisions at the NEC Conference Room in Sher-e-Bangla Nagar today (29 August).

"That means the number is more than one crore," he said. "The government did not impose these employment targets; the foundations proposed them voluntarily based on their own capacities."

The Implementation Monitoring and Evaluation Division (IMED) will regularly track implementation of the pledges, with progress data to be published on a dashboard, he said.

The government didn't impose these employment targets; the foundations proposed them voluntarily based on their own capacities.

Rashed Al Mahmud Titumir Finance and Planning Adviser
The meeting also decided to bring the foundations under a cluster-based structure aligned with the government's Five-Year Strategic Framework for Reform and Development, while allowing each institution to continue working under its own mandate.

Titumir said one of the priorities is a nationwide "One Village, One Product" programme aimed at expanding production and employment by using local resources, skills and traditions to develop specialised products in different areas.

The broader five-year strategy, approved by the prime minister under the "Bangladesh First" approach, focuses on recovery, transition and restructuring towards prosperity, he said.

Solar, health and social protection

Another priority is to turn electricity consumers into producers through renewable energy.

Titumir said the government has set a target of generating 5GW of solar power over five years, while the foundations have already committed to contributing 2GW.

More than 300 pending net-metering applications have been settled and around 200MW of solar power has reached the grid over the past six months, he said.

A Tk2,000 crore allocation will support solar projects through Idcol and BIFFL. Producers will contribute 20% of project financing, aggregators such as PKSF partner NGOs another 20%, and the remaining 60% will come through government lending, potentially bringing borrowing costs down to 6-7%, Titumir said.

In health, the government plans to move towards 150-bed upazila facilities from the existing 50-bed capacity.

Titumir said foundations would help train nurses, technicians and other workers for specialised services, including kidney dialysis and coronary care, as disease patterns shift from communicable to lifestyle-related illnesses.

The meeting also decided to move towards a universal life-cycle social protection programme, including registration of persons with disabilities, expansion of services and integration of zakat as an alternative financing source.

Investment and economic reforms

Titumir said Bangladesh Bank has arranged a Tk20,000 crore fund to help reopen closed factories and increase private-sector credit, with discussions under way to raise the amount to Tk37,000 crore.

Agreements have been signed with 40 banks, with disbursement expected to begin in September. The government will support the interest-rate differential to make financing easier for entrepreneurs, he said.

He said stalled economic-zone projects that had failed to begin operations even after eight to 10 years are now targeting production within 18 months.

Five priorities have been identified for investors: a stable tax structure for five years, time-bound approvals through a "trace and track" system, easier access to financing, energy security and seamless connectivity.

Rail and logistics reforms will also seek to address shortages of locomotives and coaches and dual-gauge constraints to reduce freight time and costs, Titumir said.

He also said an independent forensic audit of Bangladesh Bureau of Statistics data, particularly national income accounts, had begun to examine possible inconsistencies in past figures.

The five-year strategy targets raising the revenue-to-GDP ratio to 10% by 2030 and 15% by 2035.

"We have no targets that are not achievable," Titumir said, adding that the government aims to increase productive investment and turn Bangladesh into a regional manufacturing hub.

He said confidence in the economy was returning and domestic and foreign investment had begun to increase, with early signs of change visible in electricity, industry, social protection and poverty reduction.

Overall gas supply across Bangladesh is expected to increase substantially in September amid re-gasification of increased volumes of imported liquefied natural gas (LNG) with both the floating terminals in full-steam operation.

"At least eight LNG cargoes will be imported in September, mostly from spot LNG suppliers and short-term contracted companies," a senior official of state-run Petrobangla told The Financial Express on Saturday.

Average LNG re-gasification in the country's two operational floating storage and regasification units (FSRUs) is expected to be around 750 million cubic feet per day (mmcfd) with the daily re-gasification ranging from 700mmcfd to 800 mmcfd, he said about the good news amid prolonged fuel outcry.

Of the eight LNG cargoes confirmed for delivery in September, Gunvor Singapore Pte Ltd will deliver two cargoes under its long-term deal with Petrobangla, Aramco Trading Singapore Pte Ltd will supply another two -- one from spot market and another under a short-term supply deal.

Posco International Corporation and TotalEnergies Gas & Power Ltd will deliver two LNG cargoes from spot market.

If the contracted firms under direct-purchase method (DPM) supplies LNG in line with their commitments, overall LNG re-gasification will increase further, he said.

The official said overall LNG re-gasification would be much higher in September compared to August when the LNG re-gasification fell as low as to around 190mmcfd.

An abrupt accident in US Excelerate Energy's FSRU on the Bay of Bengal left the floating LNG terminal idle at least for 15 days from late July to mid-August, dragging down the country's overall gas supply.

Delivery of at least two spot LNG cargoes was affected due to abrupt shutdown of the FSRU at deep sea in Moheshkhali.

The cargoes of Gunvor Singapore Pte Ltd and TotalEnergies Gas & Power Ltd could not be delivered to the accident-ridden FSRU and had to remain stranded in the Bay of Bengal for a couple of weeks.

Rough seas, dearth in LNG supply along with the influx of a faulty LNG cargo also contributed to the squeezing of the country's overall LNG re-gasification during August.

Although the accident-ridden FSRU, owned by Excelerate, resumed partial operation on August 6, the rough weather over the Bay of Bengal had forced the LNG cargoes away from floating LNG terminals on safety grounds after the first week of August.

Excelerate Energy's FSRU -- Excellence -- also had run out of LNG following the refusal to receive LNG via ship- to-ship transfer from a moss-type LNG cargo -- Al Haamra -- supplied by Aramco Trading Singapore Ltd on safety issue during middle of August.

The significant decline in LNG re-gasification had pushed the government to divert some gas to power plants from industries as part of rationing.

The disruptions had cut gas supply to the national grid significantly, reducing gas pressure in many areas, disrupting industrial production, squeezing generation in gas-fired power plants.

Long queues of vehicles in front of CNG (compressed natural gas) filling stations across the country had been a regular scene.

The disruptions had intensified gas shortages in Dhaka and other parts of Bangladesh, where many households have been left with little or no gas for cooking for much of the day.

In some areas, supplies have stopped altogether, while factories in key industrial zones have reportedly been forced to scale down production because of low gas pressure.

Sources said the government was grappling to arrange LNG cargoes due to restricted contractual supplies because of the Middle East war and Strait-of- Hormuz supply disruptions before the abrupt operational closure of one of its two FSRUs on July 21.

Non-delivery of several scheduled LNG cargoes awarded under the DPM method also contributed to the abrupt shortage of LNG for regasification, prompting the government to buy spot LNG cargoes within a very short span of time in late August to meet exigencies.

"We are now well-prepared to keep the country's overall LNG re-gasification to around 750 mmcfd on average in September after having experiences of unforeseen accident, 'incapable' DPM contractors and 'faulty' LNG cargo," said a senior official of state-run Rupantarita Prakritik Gas Company Ltd (RPGCL).

High cost of LNG on the spot market, however, has emerged as a major challenge, he said.

"Comparatively cool temperature in September might ease the country's overall energy demand in the coming month," he hopes.

RPGCL is a part of state-owned Bangladesh Oil, Gas and Mineral Corporation, also known as Petrobangla, and is responsible for LNG trading in the country.

Bangladesh's overall natural gas supply as of August 28 was around 2,360mmcfd against a known demand for around 4,000mmcfd, according to official Petrobangla data.

An upcoming comprehensive national CSR policy obligates listed companies, banks, financial institutions, insurers and other specified businesses to spend minimum 1.0 per cent of their previous year's pre-tax profit on such activities.Social Issues & Advocacy

The policy on the anvil explicitly bars the use of corporate social responsibility (CSR) funds for political purposes, including donations to political parties.

Also on the list of exclusions are normal business expenses, direct advertising and promotion, fines, mandatory compensation, regular employee benefits and personal benefits for owners or directors.

The Ministry of Commerce (MoC) has drafted the policy styled National Corporate Social Responsibility (CSR) Policy 2026 and is now seeking stakeholder opinions on the draft. The policy will be finalised after reviewing the feedback received, officials have said.

According to the draft, the CSR policy will generally be reviewed every five years for upgrading in lockstep with changes in the business world and universal statutes.

The policy aims to establish a uniform framework for CSR activities, including spending, project selection, monitoring, reporting, and transparency, while aligning corporate initiatives with the UN Sustainable Development Goals (SDGs) and principles of the UN Global Compact.

Under the Article 6 of the drafted policy, mandatory CSR spending will apply to listed companies, banks, financial institutions and insurance companies, state-owned-or controlled commercial enterprises, foreign and multinational companies operating in Bangladesh, and businesses exceeding specified thresholds of annual sales, assets, or pre-tax profit.

The financial thresholds will be determined in line with the National Industrial Policy 2022.Banking

The CSR activities by cottage, micro and small enterprises will remain voluntary, although simplified reporting and implementation arrangements have been proposed for them.

According to the Article 10, covered entities will have to spend at least 1.0 per cent of their pre-tax profit from the immediately preceding financial year on CSR activities.

Companies may spend more than the mandatory amount, while administrative expenses related to CSR activities will be capped at 10 per cent of actual CSR expenditure.

If an entity fails to spend the full allocated amount, it will have to disclose the reasons and plans for using the unspent funds in its annual report. The unspent amount may be carried forward into the subsequent financial year. Any income generated from CSR activities will not be treated as business profit and will have to be reinvested in CSR activities. The draft policy identifies 19 priority areas for CSR spending.

Those include education, healthcare and nutrition, safe water and sanitation, poverty reduction and livelihood development, women and child development, the welfare of persons with disabilities, the elderly and disadvantaged groups, environmental conservation, climate change, disaster management, employment and entrepreneurship development, agriculture and food security, research, science and innovation, culture and heritage, and road and public safety.

Priority will be given to disadvantaged communities, local communities affected by business operations and projects expected to generate long-term and sustainable benefits.Finance

During pandemics or major natural disasters, companies will also be allowed to allocate CSR funds to emergency activities identified by the government.

The rules place overall responsibility for CSR activities on the company's board of directors.

Large entities falling under specified categories will be required to establish separate CSR committees to oversee project selection, budgeting, implementation and assessment of outcomes.

Companies will also have to prepare annual CSR reports containing information on expenditure, major projects, beneficiaries, and outcomes.

It has provisions that include preventing "greenwashing", including unsupported claims that a product, service or operation is environmentally friendly or carbon-neutral. Companies will also be barred from portraying limited activities as broader CSR achievements without adequate evidence.

The MoC has been designated as the lead coordinating ministry for implementing the policy.

A National CSR Coordination Committee, headed by the Commerce Ministry and comprising representatives from the Ministry of Finance, the National Board of Revenue (NBR), the Ministry of Industries, Bangladesh Bank (BB), Bangladesh Securities and Exchange Commission and other relevant agencies, will be formed.Social Issues & Advocacy

The government also plans to introduce a National CSR Award to recognise companies demonstrating effective CSR practices. However, "awards may be withdrawn if they are found to have been obtained on the basis of false information", the policy mentions.

The government may also consider amending existing laws or introducing new regulations related to CSR when necessary.

Contacted, a senior commerce official said, "We have prepared a draft policy on CSR and are seeking opinions from the stakeholders. After receiving the feedbacks, the draft will be finalised by addition and subtraction."

Customs authorities have seized 10 trucks carrying nearly 73 tonnes of duplex board in Old Dhaka’s Nayabazar area, days after the consignment imported duty-free under bond facilities went missing from its designated route to Khulna.

The Customs Intelligence and Investigation Directorate (CIID) conducted the raid overnight on August 28, recovering nine trucks loaded with roughly 73 tonnes of duplex board and a tenth carrying unidentified goods, according to a press release issued yesterday.
The shipment was originally destined for a bonded warehouse in Khulna, but the consignment strayed from the route and ended up in Nayabazar, where preparations were underway to unload and sell the goods in the local wholesale market.

Import and transport documents show the goods were imported by Sri Flexopack Ltd of Khulna from Indian exporter Mehali Papers Pvt Ltd.

Under bond facility rules, duty-free raw materials must be delivered to the importing company’s approved factory or warehouse and used solely for production.

Diverting such goods to another warehouse or market, unloading them for open sale, transferring ownership, or using them for any purpose outside approved production activities constitutes a breach of bond conditions and may amount to duty and tax evasion.

The CIID said that the responsibility of the individuals and companies involved will be determined only after the investigation is complete, documents are verified, and statements are recorded.

Authorities are also working to track down a truck that escaped during the raid, identify potential buyers or wholesalers, and dismantle the wider network believed to be behind the operation.

Chattogram port has retained its 68th position among the world’s 100 busiest container ports for the second consecutive year, despite handling 4 percent more containers in 2025 than in the previous year.

London-based shipping journal Lloyd’s List recently published the ranking in a special report titled “Lloyd’s List: One Hundred Ports 2026”. The ranking is based solely on container traffic data from seaports worldwide in 2025, rather than service quality or overall performance.

Even so, container throughput remains a key indicator of economic activity, reflecting trade volumes of industrial raw materials as well as high-value imports and exports.

According to the publication, Chattogram port handled 34.09 lakh twenty-foot equivalent units (TEUs) of containers in 2025, up from 32.75 lakh TEUs in 2024 – a year-on-year rise of 4.1 percent.

At Chattogram port, Lloyd’s said growth remained modest.

“But major investments from APM Terminals, MSC and Red Sea Gateway are reshaping the future of Bangladesh’s leading container port.”

On the global stage, China maintained its dominance in container shipping in 2025, with Shanghai retaining the top spot after handling 5.50 crore TEUs, up 6.9 percent year-on-year.

Singapore followed in second place with 4.47 crore TEUs. Six of the world’s top 10 container ports are in China, whose ports handled more than 40 percent of the 792.2 million TEUs handled by the world’s top 100 ports in 2025, a 6.3 percent year-on-year increase.

Chattogram has remained among the top 100 since 2009. Its best ranking in the Lloyd’s List over the past decade was 58th, based on 2019 container traffic and published in the 2020 rankings. Despite continued growth in container volumes since then, the port has yet to regain that position.

Commenting on the latest ranking, Mohammed Amirul Haque, president of the Chittagong Chamber of Commerce and Industry, said growth in container traffic through Chattogram port was closely linked to the country’s overall economic activity.

He said container handling had continued to increase year after year despite various challenges, adding that further improvements could be achieved by overcoming energy shortages and enhancing services at both the port and customs.

He also said the good news was that both local and foreign investments were returning to Chattogram Port, while new terminals were being developed. These, he added, would significantly expand the port’s container-handling capacity once operational.

Chattogram Port retained its 68th position in the global ranking of container ports despite recording a 4.1% year-on-year increase in container handling in 2025.

The ranking, based on container throughput at ports worldwide in 2025, was published by London-based shipping and ports publication Lloyd's List in its latest special report, Lloyd's List: One Hundred Ports 2026.

According to the report, Chattogram Port handled 3,409,069 twenty-foot equivalent units (TEUs) of containers in 2025, up from 3,275,627 TEUs in 2024.

The port slipped one place to 68th in the 2025 edition of the ranking after holding 67th position for two consecutive years.

Despite handling a record volume of containers in 2024, Chattogram fell in the ranking as other ports recorded faster growth.

Lloyd's List said growth at Chattogram remained limited, but major investments by APM Terminals, MSC and Red Sea Gateway are reshaping the future of Bangladesh's main container port.

Saudi Arabia-based Red Sea Gateway Terminal (RSGT) began partial operations at Chattogram Port's newly built Patenga Container Terminal (PCT) in June 2024 and started full-scale operations at the terminal this year.

Meanwhile, Danish terminal operator APM Terminals is set to begin construction of the Laldia Container Terminal this month. The foundation stone for the terminal is scheduled to be laid on Sunday.

China's Shanghai Port retained the top position after handling 55,062,500 TEUs in 2025, while Singapore Port ranked second.

Historical data show that Chattogram Port has seen significant fluctuations in the Lloyd's List ranking over the past decade.

In the 2024 edition, based on 2023 data, the port retained 67th place despite a 2.9% decline in container handling.

In the 2023 edition, based on 2022 data, Chattogram slipped three places to 67th after handling 3,142,504 TEUs, down 2.2% from the previous year.

The port moved up three places to 64th in 2022.

Before that, Chattogram had advanced steadily for seven consecutive years. But in the 2021 edition, based on 2020 data, it dropped nine places to 67th, largely because the Covid-19 pandemic disrupted garment exports and reduced container handling.

The port ranked 58th in 2020, 64th in 2019, 70th in 2018, 71st in 2017, 76th in 2016, 87th in 2015 and 86th in 2014.

Port users, however, say the Lloyd's List ranking should not be treated as a complete measure of a port's overall performance.

They point out that the ranking is based primarily on container throughput, meaning a port can fall in the rankings even when its operational capacity or efficiency improves if other ports record faster growth.

For Chattogram, the latest investments in new terminals are expected to increase handling capacity and reshape its position in global rankings in the coming years.

The government has identified 14 factors behind the slow implementation of the Annual Development Programme (ADP), including flawed project documents, lack of skilled project directors, delays in land acquisition and lengthy procurement processes.

It has taken several measures to address the problems, including improving feasibility studies, expanding e-GP use, appointing project directors based on skills and experience, and strengthening field-level monitoring.

Planning Minister Amir Khosru Mahmud Chowdhury disclosed the information in reply to a question from reserved women's seat lawmaker Rokeya Begum during the third session of the 13th parliament today (27 August). Speaker Hafiz Uddin Ahmed chaired the session.

The minister said weak project preparation, poor feasibility studies and inconsistencies in project data were among the major obstacles to timely ADP implementation.

Other factors include delays in land acquisition and utility relocation, repeated extensions of project timelines and costs, lack of proper exit plans and delays in procurement.

The government also identified inadequate use of research findings, weak project monitoring, mismatches between financing plans and budgets, weaknesses in selecting project locations, and poor coordination and division of responsibilities among agencies.

Delays in preparing Development Project Proposals or Technical Assistance Project Proposals after securing funding from development partners were also identified as a problem.

The minister said failure to follow guidelines in appointing project directors and performing their responsibilities, along with weaknesses in results-based planning and evaluation frameworks, were also slowing implementation.

Measures to speed up implementation

The government is working to improve the quality of feasibility studies and project preparation before projects are approved, the minister said.

Use of e-GP in public procurement is being expanded, while coordination among agencies has been strengthened to expedite land acquisition and utility relocation.

For project directors, professional qualifications, skills and practical experience will receive greater priority. The government is also seeking continuity in project leadership where necessary. Regular project review meetings and closer field-level monitoring have also been strengthened.

Projects with less than 30% implementation progress will undergo reviews to assess their relevance and effectiveness. Ministries and divisions have been asked to consider restructuring, changing project scope or continuing such projects based on the reviews.

Dashboards are also being introduced at relevant ministries and divisions to monitor project progress regularly.

The government will review delays, irregularities, cost increases and revisions in projects that fail to meet deadlines and take action against responsible individuals or organisations in accordance with regulations, the minister said.

The Insurance Development and Regulatory Authority (IDRA) will begin settling long-overdue insurance claims from next week by liquidating assets and selling properties belonging to several troubled insurance companies, IDRA Chairman Mir Nadia Nivin said on Friday.

The regulator will process claims for seven to eight financially distressed insurers in the initial phase, she said at a workshop organised by the Insurance Reporters Forum (IRF) at the Bangladesh Academy for Rural Development (BARD) in Cumilla.

“Funds generated from liquidating land, treasury bonds, and fixed deposits belonging to these companies are being deposited into separate bank accounts under IDRA’s supervision to pay policyholders on a first-come, first-served basis,” she said.

Nivin added that some assets had already been sold, while others were in the process of being liquidated.

Citing the situation of one troubled company facing unsettled claims worth around Tk 3,000 crore, she said proceeds from selling its land in Feni, along with liquidated bonds, would fund an initial payout of a few hundred crore taka.

If all its assets and bonds are fully liquidated, the regulator estimates that it can raise around Tk 1,500 crore to address a major portion of policyholder dues before a final decision is made on its future operations.

Nivin hoped that once the aforementioned company began repaying claims, it would regain policyholders’ confidence, start earning premiums again and turn around.

Failure to settle claims had hurt the companies themselves, Nivin stressed, adding that the industry as a whole would benefit once insurers started clearing dues.

REGULATORY REFORMS AND CHALLENGES

Nivin pointed out that there was no reliable data on the insurance sector available to anyone, not even to IDRA itself, as many insurance companies withheld real data both in their financial statements and from the regulator.

She said that some insurers had been keeping undisclosed “double servers” to hide their real financial data. The regulator wrote to them to follow a strict six-week deadline to eliminate the practice or face severe legal action.

Against this backdrop, a fully operational risk-based supervision model will be launched by December, making IDRA the first regulatory body in Bangladesh to adopt such a mechanism to identify data gaps and institutional risks, she added.

On digitalisation, Nivin said a centralised digital ID system for every policy would be rolled out within four months to eliminate fake premium reporting and partial business disclosures.

She declared zero tolerance for corruption, saying that anyone who offers a bribe to or demands one from an IDRA official would face immediate prosecution rather than an administrative warning.

Nivin acknowledged that IDRA faces severe operational constraints, regulating 82 companies with a staff of just 150, alongside outdated provisions in the Insurance Act, 2010.

Regulatory enforcement would nonetheless be intensified to protect policyholders, she added.

National Life Insurance CEO Md Kazim Uddin said claim defaults by a handful of companies had cast a shadow over the entire industry.

“The most effective way to restore public trust in the insurance sector is to settle claims on time,” he said.

IRF President Golam Mowla focused on the crisis of confidence in the sector stemming from the failure of some insurers to settle claims.

IDRA should ensure that insurance companies comply with rules and regulations, he stressed.

MIXED TRENDS IN CLAIM SETTLEMENT

The latest IDRA data shows that about 12 lakh policyholders remain unpaid, with 32 insurance companies struggling to clear their dues and seven recording the lowest settlement rates. Unsettled claims had grown to Tk 4,403 crore by 2025.

According to data from the Financial Institutions Division under the Ministry of Finance, the total amount of life insurance claims in 2024 stood at Tk 13,056 crore, of which Tk 8,609.5 crore were settled, meaning 65.94 percent of the claims were settled.

In comparison, 66.54 percent of life insurance claims were settled in 2025, marking a slight improvement.

Meanwhile, the total amount of non-life insurance claims in 2024 stood at Tk 4,322 crore, of which Tk 1,333 crore were settled, meaning 30.84 percent of the claims were settled.

In comparison, 25 percent of non-life insurance claims were settled in 2025, marking a significant drop.

Dutch-Bangla Bank PLC (DBBL) has decided to more than double its authorised capital to Tk3,500 crore, creating room for future equity issuance as it prepares to meet Bangladesh Bank's new capital requirement for cash dividends.

The board approved the decision at its meeting on Tuesday (25 August), according to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (27 August).

The board approved raising authorised capital from Tk1,500 crore to Tk3,500 crore. The proposal will be placed before shareholders at an Extraordinary General Meeting (EGM) on 15 October, with 20 September set as the record date.

Following the disclosure, DBBL's share price rose 1.10% to Tk46.10 on the DSE.

Capital requirement drives move

The move comes after Bangladesh Bank, in a circular issued on 23 May, set a minimum paid-up capital requirement of Tk2,000 crore for commercial banks to remain eligible to declare cash dividends from 31 December 2026.

DBBL's current paid-up capital is Tk1,015 crore, leaving a Tk985 crore shortfall. The bank will therefore need to issue substantial bonus or rights shares to meet the threshold.

Increasing authorised capital will provide the legal headroom needed for such future equity issuance.

DBBL paid a 25% cash dividend and 5% stock dividend for 2025. Strengthening its capital base is expected to help the bank maintain dividend payments under tighter rules, which also cap the portion of declared dividends that even well-capitalised banks can pay in cash at 50%.

Earnings surge

DBBL's earnings also strengthened sharply in the second quarter of 2026. Its earnings per share (EPS) jumped 947% year-on-year to Tk1.78 in April-June, from a restated Tk0.17 a year earlier.

For January-June, EPS rose 318% to Tk4.35, compared with a restated Tk1.04 in the first half of 2025.

The bank's net asset value (NAV) per share stood at Tk61.15 as of 30 June, while net operating cash flow per share (NOCFPS) increased to Tk13.89.

Land purchase for data centre

The board also approved the purchase of 16.60 decimals of land in Baipail, Savar, for Tk3.48 crore.

Subject to Bangladesh Bank approval, the land will support the expansion of DBBL's ongoing data centre project at Dhaka Export Processing Zone (DEPZ), aimed at strengthening its digital banking operations.

Walton Hi-Tech Industries PLC has recommended a 180% cash dividend, equivalent to Tk18 per share, along with a 10% stock dividend for the financial year ended 30 June 2026, as its earnings rose year-on-year.

The decisions were taken at the company's board meeting held today (29 August), following the approval of its audited financial statements.

According to the price-sensitive disclosure, the company's earnings per share (EPS) rose to Tk33.75 for FY2025-26, up from Tk31.11 recorded in the previous financial year.

Walton attributed the growth in earnings primarily to a significant drop in finance costs, which decreased by Tk267.26 crore to represent 2.45% of sales, compared to Tk448.40 crore (6.33% of sales) in FY2024-25.

The electronics giant also reported a strong boost in cash flow. Net operating cash flow per share (NOCFPS) surged to Tk63.72 for FY26 from Tk52.91 in FY25. This improvement was driven by a Tk694.36 crore (8.84%) increase in customer collections alongside a 2.31% reduction in supplier payments during the year.

The company's net asset value (NAV) per share with revaluation stood at Tk381.26 as of 30 June 2026, compared to Tk363.40 a year earlier. Without revaluation, the NAV per share was Tk280.24.

Walton disclosed that the 10% stock dividend will be utilised to finance the ongoing capacity expansion of its Green Energy project under Balancing, Modernisation, Rehabilitation and Expansion (BMRE) to ensure uninterrupted power supply for the company.

The record date for determining shareholder dividend eligibility has been set for 20 September 2026. The company's annual general meeting (AGM) will be held virtually on 15 October 2026 at 12pm.

Stock returns at the Dhaka Stock Exchange (DSE) fell 2% in the outgoing week, led by sharp drops in the Textile and General Insurance sectors, according to the bourse's weekly report.

Driven by broad-based selling pressure amid an ongoing energy crisis and a cautious stance by investors, stocks across 20 out of 21 sectors saw returns decline by 2.09%, with only corporate bonds managing a positive return.

As per DSE data, the textile sector's return fell by 5.16%, the highest among all sectors, followed by general insurance by 4.69%, mutual funds by 4.5%, and the IT sector's return by 4.01%. The telecom sector's return fell by 1.13%, the lowest among all sectors.

Meanwhile, stocks at the DSE experienced a significant downturn over the previous week in terms of indices, turnover and market capitalisation, with the majority of stocks suffering price declines.

Over the last week, DSEX, the benchmark index of the DSE, fell by over 2.25%, or 130 points, followed by DS30, the blue-chip index, by 1.28%, or 27 points, and DSES, the Shariah index, by 2.04%, or 23.58 points.

Market turnover, one of the key indicators of the capital market, fell by 49% to Tk2,286 crore, while average daily market turnover dropped by 36.88%.

Last week, stock trading occurred for four days instead of the usual five due to a holiday.

Market capitalisation, the value of total outstanding shares of the listed companies, dropped by Tk6,494 crore. Of the 388 traded stocks, 88%, or 342 stocks, declined in price, while only 35 stocks advanced and 11 remained unchanged.

EBL Securities, in its daily market commentary, said the capital bourse extended its downward trajectory for the second consecutive week, as persistent concerns over the ongoing energy crisis, a weakening corporate earnings outlook and cautious investor sentiment continued to weigh on market performance.

"The week commenced with a sharp decline as investors remained concerned about the adverse impact of prolonged gas and electricity shortages on industrial production and corporate profitability, which continued to drive negative momentum throughout the subsequent sessions.

"Although the market attempted a slight reversal in the final session on the back of selective buying interest, intermittent selling pressure continued to cap the market's recovery potential as investors remained wary of the prevailing domestic uncertainties," it said.

Investors were mostly active in Textile, followed by General Insurance and Pharma sectors.

The securities regulator has stepped in to protect general investors of three listed non-bank financial institutions (NBFIs), urging Bangladesh Bank (BB) not to proceed with liquidation or delisting without safeguarding shareholders’ legitimate interests, official sources said.
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In a letter to the Bangladesh Bank governor, the Bangladesh Securities and Exchange Commission (BSEC) said general investors should not be made to bear the consequences of the financial distress of the troubled institutions.

The three NBFIs -- Fareast Finance & Investment, International Leasing and Financial Services, and FAS Finance & Investment -- are facing liquidation after the BB deemed them non-viable due to persistent losses and erosion of capital.

The three are among four financial institutions brought under resolution by the BB through an order issued on August 10 under the Bank Resolution Act, 2026.

The BSEC's intervention comes at a critical stage because resolution of a financial institution ultimately involves restructuring, transfer of assets and liabilities, liquidation or cancellation of its listing—steps that may have major implications for ordinary shareholders.

One of the BSEC's key proposals is that if the government provides compensation to any party as part of the resolution process, a portion should be allocated to general investors.

The commission also proposed a mechanism for determining the minimum value of general shareholders' interests before liquidation.

The proposal is significant for small investors, who have purchased shares of the listed NBFIs from the stock market and may face substantial losses if the companies are liquidated or delisted without an investor-compensation mechanism.

The BSEC has also opposed any move to liquidate or delist the three companies before the interests of general shareholders are assessed and disclosed.

Alternatively, a price should be fixed and publicly announced for the shares held by general investors, it said.

Such a requirement, if followed, would provide shareholders with greater clarity over what their investments are worth before the companies cease to exist as listed entities.

The securities regulator has also asked BB to consult it on investor-protection issues whenever the resolution of the companies is discussed with the government.

The BSEC further requested that it be kept informed of developments in the liquidation process.

The developments involving the three listed NBFIs could become an important test of how the country's new resolution framework balances competing interests of depositors, creditors, shareholders and other stakeholders.

For ordinary shareholders, liquidation can mean losing both their investment and the opportunity to recover any value from their shares. Unlike controlling shareholders or management, however, general investors might have had little or no involvement in the decisions that led to the financial distress.

Meanwhile, the latest financial disclosures paint a grim picture of the three listed NBFIs.

FAREAST Finance reported a negative EPS of Tk 3.75 and negative NAV per share of Tk 54.23 for January-September 2025.

International Leasing's EPS stood at negative Tk 6.71, while its NAV per share plunged to negative Tk 219.03 during the same period.

FAS Finance reported an even steeper negative EPS of Tk 10.34 for January-June 2026, with its NAV per share deteriorating to negative Tk 158.39.

Sri Lanka is seeking international bids for offshore oil and gas exploration, authorities announced Tuesday, more than a decade after an Indian firm abandoned commercial drilling citing high costs.

The island nation said it was offering four offshore blocks covering about 34,000 square kilometres (13,127 square miles) in the Indian Ocean for exploration, development and commercial production.
Sri Lanka, which imports all of its crude oil needs, has seen its fuel import bill increase as much as five-fold since the Middle East war began in February.Announcing the offshore tenders, Energy Minister Anura Karunathilaka said bidding would remain open until early next year.“We believe that the time has come to move forward with great determination and a clear sense of purpose,” Karunathilaka told a news conference in the capital Colombo.

Sri Lanka had previously offered offshore blocks to India and China but with little commercial success.

Karunathilaka said technology had evolved over the past decade to make deep-sea drilling affordable, expressing his hope that the country would be able to attract investors.

“The government of Sri Lanka is committed to ensuring that exploration and development of offshore resources are undertaken responsibly, transparently and in a manner that creates long‑term value,” said the minister.

Interest in Sri Lanka’s Mannar basin was boosted after Cairn India, through a local subsidiary, drilled four wells between 2011 and 2013 and reported gas discoveries in two of them.

But the company exited in 2015, saying extraction from deposits lying about 4.3 kilometres (14,000 feet) beneath the seabed was not commercially viable.

Neil de Silva, head of Sri Lanka’s Petroleum Development Authority, said the cost of drilling a deep offshore well had remained at about $40 million, but the technology to extract oil and gas had become efficient.

Prospective bidders would also be given access to detailed seismic, geological and geophysical data gathered over several decades, he added.

Sri Lanka’s “conservative estimate” of gas deposits was about nine trillion cubic feet, and that of oil two billion barrels, de Silva said.

Russian firms carried out the first drilling in the region in 1971 without any breakthrough, and the government subsequently abandoned the search until Norwegian firms helped with seismic studies about two decades ago.

GBB Power has stepped into the renewable energy business with a 25-year deal, under which it will develop a 5.005-megawatt ground-mounted solar plant at Cumilla Cantonment.

With the deal, the company has steered its business in a different direction after its operations had remained suspended for a long time.

The company said in a stock exchange filing on Monday that its subsidiary, Solaron Power, had signed the agreement with the Station Headquarters, Cumilla Cantonment, under the 33rd Infantry Division of the Bangladesh Army.

Under the agreement, the plant will be installed, owned and operated by Solaron Power before being transferred under the agreed arrangement.

GBB Power holds a 70 per cent stake in Solaron Power, while the remaining 30 per cent is owned by strategic partners with expertise in the solar energy sector.

The total investment in the project is expected to be around Tk 60 million, with commercial operation targeted for the first half of 2027, subject to the completion of the necessary development and installation work.

The project marks an important diversification move for GBB Power, which has remained non-operational for more than three years following the expiry of the power purchase agreement for its gas-fired plant.

The company has remained shut since June 2023, as its power purchase agreement with the Bangladesh Power Development Board (BPDB) expired. It is currently among the 36 non-operational listed companies on the stock market.

Industry insiders said the relatively modest investment requirement and the duration of the deal could give GBB Power an opportunity to build a recurring revenue stream from the project once commercial operation begins.

The move also comes at a time when Bangladesh is placing greater emphasis on renewable energy amid concerns over energy security, rising fuel costs and the need to diversify power sources.

Ground-mounted solar projects are increasingly being considered by industries, institutions and other large consumers as an alternative source of electricity, particularly to reduce dependence on the national grid and fossil-fuel-based generation.

In January this year, a consortium of Fiber@Home and GBB Power also signed a PPA with the BPDB to develop an 18MW solar power plant in Chattogram. The project is expected to start supplying electricity within the next two years.

Unilever is betting that shedding food assets and focusing on beauty, personal care and home products will close a valuation gap with more focused rivals.

The challenge is convincing investors that a simpler company can deliver higher returns.
The maker of Dove soap, Axe deodorant and Cif cleaning products trades at 11.5 times enterprise value to core earnings, according to LSEG data.That compares with 14.8 for Procter & Gamble, 17.5 for L’Oreal and 22.7 for Coca-Cola. Those multiples suggest investors place a premium on more focused consumer goods companies. But investors have two main concerns.Unilever’s deal in March to merge its food business with US spice maker McCormick will leave the British group with an almost 10 percent stake in the combined company, and its shareholders with a roughly 55 percent stake.

At the same time, the transaction reduces Unilever’s exposure to a relatively high-margin business, increasing pressure on management to show that faster-growing beauty, personal care and home products can make up the difference.

“Until you show me the evidence that you’re turning this around, you’re sitting on a very low multiple,” said Dan Hanbury, a portfolio manager at Ninety One, a major investor in Colgate-Palmolive, Unilever and L’Oreal.

The market is wary of “false dawns” from corporate turnarounds, he added, saying Unilever probably needed three or four quarters of strong volume growth to win over doubters.

Big industrial companies from General Electric to Siemens have spent years simplifying their structures in an effort to eliminate what investors call a conglomerate discount, a penalty applied to companies whose complexity is seen as weighing on efficiency and growth.

That thinking has increasingly spread to consumer goods companies.

Where diversification was once seen as a strength that could cushion changes in consumer tastes, investors now increasingly favour category leaders that can focus investment, innovation and marketing on a narrower set of products.

Under CEO Fernando Fernandez, Unilever has accelerated its retreat from food.

The company spun off its ice cream business and in March struck a roughly $65 billion deal to combine its food division with McCormick. The issue is not that food is unprofitable.

The business has historically generated attractive margins, but growth has lagged Unilever’s beauty and personal care operations.

“Being focused on a single category allows you to be more cost effective and more innovative,” said Akeel Sachak, global head of consumer at Rothschild & Co.

Investors often point to Procter & Gamble as a template.

The Tide detergent maker exited food and streamlined its brand portfolio, subsequently delivering stronger growth and earning a valuation premium for much of the following decade.

“P&G pulled off the restructuring, drove higher growth and commanded a relatively higher premium for probably 10 years,” Hanbury said.

Investors and analysts say the focus for Unilever has now switched from portfolio reshuffling to execution.

“If (Unilever) continues to execute, Unilever will continue to see a degree of re-rating ... and then hopefully grow from there,” said Will James, portfolio manager at Guinness Global Investors, which holds shares in Unilever and L’Oreal. Unilever has reported improving results in recent quarters, and in July said sales volumes had reached their highest level in more than a decade.
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Yet despite the operational improvement, some Unilever investors are concerned about their continued exposure to the slow-growing food category via their stake in the company resulting from the McCormick merger, Barclays analyst Warren Ackerman said.

Unilever declined to comment.

CEO Fernando Fernandez told an industry event in June: “I believe that every quarter that goes by, and we deliver the numbers that we have been delivering, and we get closer to the closing of a transaction of McCormick, the value of Unilever will be shown.”

The Import Policy Order 2026–2029 includes provisions for free trade zones and central bonded warehouses, with the government aiming to strengthen Bangladesh's potential as a regional hub for trade, logistics and re-export.

The new policy, gazetted by the Ministry of Commerce yesterday (24 August), also seeks to improve the storage and supply of raw materials for export-oriented industries.

Unlike the 2021–2024 order, which provided bond facilities and other benefits for export-oriented industries, the new order explicitly includes central bonded warehouses as part of the country's trade and logistics infrastructure.
Although the Import Policy Order 2021–2024 expired on 30 June 2024, it remained in effect until the issuance of the new order.

The introduction of free trade zones (FTZs) will mark a major shift in Bangladesh's export strategy, industrial development and investment facilitation efforts.

The initiative is expected to help reduce supply chain delays, lower production costs and strengthen Bangladesh's position as a regional trade and logistics hub as the country prepares for graduation from least developed country (LDC) status.

Bangladesh’s economy showed signs of gradual stabilisation during the April-June quarter of FY26, although overall economic activity remained subdued, said the Metropolitan Chamber of Commerce and Industry (MCCI) in its review.

“Inflation remained the major concern,” the MCCI said in the review released yesterday.The leading trade body said the country’s economic growth for FY26 was provisionally estimated at 4.14 percent, up from 3.49 percent in FY25. Inflation, however, remained elevated, continuing to put pressure on household purchasing power and the cost of living.The external sector performed relatively well, supported by strong remittance inflows and improved foreign exchange reserves.Remittances remained robust during the quarter, while reserves strengthened significantly by the end of June, providing greater stability for the balance of payments and the foreign exchange market, the MCCI said.

Yet, there were some challenges.

“Export growth remained weak despite a rebound in June, while private investment, credit growth and domestic demand were constrained by high interest rates and economic uncertainty. The banking sector also remained under pressure, alongside fiscal constraints and elevated inflation,” it said.

“Overall, the quarter reflected a transition from macroeconomic adjustment towards gradual recovery, with improved external sector resilience being a key positive development,” said the MCCI.

The trade body said data on the sectoral performance of the economy was yet to be available.

Third-quarter (January-March) data for FY26 released by the Bangladesh Bureau of Statistics (BBS) showed that the industrial sector suffered a 0.28 percent contraction during the period as businesses remained cautious about fresh investment amid tight liquidity, elevated borrowing costs and persistent macroeconomic uncertainties.Within the sector, the manufacturing sub-sector registered negative growth of 0.34 percent in the same period, against 1.13 percent in the previous quarter, according to the BBS.

The MCCI said merchandise export earnings rebounded strongly in June 2026, the last month of the fiscal year, rising by 25 percent year-on-year to $4.19 billion from $3.35 billion.

However, total export earnings for FY26 stood at $48.38 billion, a marginal increase of 0.17 percent from $48.30 billion in FY25, falling short of the government’s target of $55 billion by 12 percent, largely due to weak global demand, high energy costs and inflationary pressures.

The inflow of remittances in FY26 reached a record $35.59 billion, a 17 percent rise over the previous fiscal year.

The trade body, citing experts, said Bangladeshi expatriate workers sent increased amounts of money home through official channels, while the banking regulator’s steps to ease money transfers and monitor informal channels also helped.

On the investment climate, the MCCI, citing Balance of Payments data from Bangladesh Bank, said net inflows of foreign direct investment (FDI) in FY26 decreased by 15 percent year-on-year to $1.46 billion from $1.72 billion a year ago.

It said FDI inflows in Bangladesh is low compared with that in many other countries at a similar level of development, even though the low labour costs available here are generally believed to be attractive to foreign investors.

The MCCI said foreign investors hesitate to make fresh investments in the country because of underdeveloped infrastructure, a shortage of energy and weak transmission infrastructure, a lack of consistency in policy and regulatory frameworks, a scarcity of industrial land, corruption, and non-transparent and uneven application of rules and regulations.

“The government needs to address these impediments to attract more FDI to the country to ensure the country’s economic development.”

Outlook
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For the current quarter, the chamber, representing large companies, said exports, imports and remittances may increase. Foreign exchange reserves may decrease between July and September due to import payments to Asian Clearing Union (ACU) member countries.

Inflation, however, is likely to go down in September of FY27 after a spike in August, it said, projecting an 8.65 percent increase in consumer prices on a point-to-point basis this month and an 8.45 percent increase in September.

“After the general election, the economy is trying to overcome the difficulties due to the present political uncertainty and conflicting world scenario. Therefore, the performance of the selected economic indicators is mixed,” it said.

Going forward, the MCCI said sustaining price stability, strengthening the financial sector, promoting private investment and exports, and maintaining external-sector stability will be critical for achieving stronger and more inclusive economic growth.

“The policy priority going forward is therefore to consolidate external sector stability while bringing inflation down and creating conditions for stronger private investment and sustainable growth.”

The government is preparing for a change in how it plans, spends, taxes and measures its economy. From fiscal year 2028-29, the country will move from the July-June fiscal year to an April-March cycle, with FY2027-28 becoming a nine-month transition period. Bangladesh has struggled to implement its development budget on time. In FY2025-26, only 67.52 percent of the revised ADP allocation was utilised, the lowest implementation rate in the past five years.

The logic behind the change in the fiscal year is to finish major infrastructure work before the monsoon instead of pushing contractors to build roads, bridges and public facilities during heavy rain, which adds to costs. An April fiscal year could create a better operating rhythm. Plan in April, procure early, execute through the dry months and finish before the next major monsoon. But can this shift be treated as an economic reform? A new fiscal calendar can improve the timing of growth, but it cannot create growth unless institutions, businesses and markets are ready to use that time better.
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The biggest catch will be the nine-month transition year in FY2027-28. The first stress test will be managing an unusual financial year for government, banks and businesses. Budgets, revenue targets, government procurement, depreciation schedules, financial reporting, loan covenants, tax calculations, corporate strategies and targets must be replanned. Revenue collection could be sensitive. NBR collected Tk 360,642 crore during July-May of FY2025-26 and remained Tk 81,442 crore below its target for those 11 months. A compressed transition year could intensify pressure on revenue collection if targets are not redesigned prudently.

For corporates, the biggest risk is comparability. A nine-month year consisting of three quarters cannot be directly compared with a normal 12-month year having four quarters. Sales, profit, tax, loan growth, working capital and employee performance may appear artificially higher or lower, making confusion costly. Banks and financial institutions will need to reinterpret annual goals, loan renewals, covenant testing, costing budgets, revenue targets, provisioning cycles and customer cash-flow assessments. The transition is happening at a time when private-sector credit growth has already fallen to historically low levels. SMEs dependent on government contracts may feel the impact more.

Entrepreneurs and investors, foreign and local, may postpone investment during the transition because they may not confidently forecast demand, taxation and government spending. That would be dangerous when Bangladesh is already struggling to revive private investment. From the government side, project timing may change during the transition year. Procurement and public-service expenditure could become uneven. Salary, subsidy, social safety-net and development spending schedules may need fine-tuning or sudden adjustment. Businesses may also revise prices, hiring plans and investment decisions.

These issues matter because inflation is still high. Average inflation fell to 8.68 percent in FY26 from 10.03 percent in FY25, but remained above 8 percent for the fourth consecutive year. Bangladesh cannot afford prolonged weakness in investment and employment. IMF data put FY25 real GDP growth at around 3.8 percent, after 7.1 percent growth only three years earlier.

The solution is not to reject the reform. It is to build thoughtful safeguards around it. Bangladesh needs to measure success differently. The success of the new fiscal year should not be judged by how smoothly the government closes its accounts. It should be judged by how rapidly roads are constructed, how efficiently businesses invest, how many jobs are created and how much private capital is mobilised. The question is no longer whether Bangladesh should change its fiscal year. It is whether Bangladesh is prepared to change the way it creates real economic growth for the nation.

Bangladesh's economy showed signs of stabilisation during April–June of FY26, but continued to face significant macroeconomic stress, according to the Metropolitan Chamber of Commerce and Industry (MCCI).

MCCI said in its "Review of Economic Situation of Bangladesh April-June 2026 (Q4 of FY26) released today (25 August).

Provisional Bangladesh Bureau of Statistics (BBS) estimates put overall FY26 GDP growth at 4.14%, up from 3.49% in FY25, although growth remained below the country's longer-term potential, it mentioned.
Inflation remained the major concern, the trade organisation said, adding that headline inflation rose above 9% during the quarter, reaching 9.16% in June after standing at 9.42% in May.

Food inflation eased to 8.60% in June, but persistent non-food and energy-related price pressures continued to constrain household purchasing power.

The external sector, however, showed considerable improvement, said the MCCI.

Remittance inflows remained exceptionally strong, with Bangladesh receiving $9.38 billion during April–June, it added.

Foreign exchange reserves also strengthened, with gross reserves rising to $37.58 billion at the end of June, compared with $34.48 billion at the end of May.

Exports remained subdued despite a strong rebound in June, when shipments reached $4.19 billion, stated the MCCI.

Total exports in FY26 stood at $48.38 billion, marginally higher than the $48.3 billion recorded in FY25, it mentioned.

The figures indicate continued weakness in external demand despite some recovery towards the end of the fiscal year, the MCCI noted.

Overall, the review period reflected gradual macroeconomic stabilisation, supported particularly by strong remittances and improved foreign exchange reserves.

However, high inflation, subdued investment and credit growth, weak export performance, fiscal constraints and vulnerabilities in the banking sector remained significant challenges, the MCCI remarked.

The policy priority going forward should be to consolidate external sector stability while bringing down inflation and creating conditions for stronger private investment and sustainable economic growth, according to the MCCI.