Implementation of the Annual Development Programme (ADP) stood at 0.69 percent in the first month of the fiscal year, virtually unchanged from the same period a year earlier, according to the report of the Implementation Monitoring and Evaluation Division (IMED).

Government agencies and ministries spent Tk 21.11 billion (Tk 2,111.18 crore) from the ADP allocation in July 2026, against Tk 16.85 billion (Tk 1,684.66 crore) during July 2025, the IMED report showed.

Although the implementation rate remained unchanged, the amount of expenditure increased by Tk 4.26 billion (Tk 426.52 crore) year-on-year, reflecting the larger development budget.

The government has allocated Tk 3809.15 billion (Tk 380,914.86 crore) for the ADP for fiscal year 2026-27, compared with Tk 2386.96 billion (Tk 238,696 crore) in the previous fiscal year.

The latest figures show that the pace of ADP implementation remains low at the beginning of the fiscal year.

The IMED, under the Planning Ministry, monitors development projects and prepares monthly reports on ADP progress by ministries and divisions.

Commercial banks need to adopt a more tailored approach to financing start-ups while maintaining prudent banking practices, Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management (BIBM), said yesterday.

He made the comment at a seminar titled “Start-up Financing in Bangladesh: Can Commercial Banks Play a Significant Role?”, organised by BIBM in Mirpur, Dhaka.

The seminar discussed the challenges and opportunities in start-up financing and ways to enhance the role of commercial banks in supporting the emerging start-up ecosystem, according to a press release.

Ezazul said start-ups often require a different financing approach, as their value may not be adequately reflected in conventional collateral or current cash flows. Their potential may instead depend on ideas, technology, data, human capital, intellectual property and future growth prospects.

He stressed that this should not mean compromising prudent banking practices. Banks need to strengthen their capacity to assess start-ups through better financial and transaction data, specialised appraisal expertise, relationship-based banking and a clearer understanding of different stages of the start-up life cycle.

Appropriate risk-sharing mechanisms could enable commercial banks to play a greater role in start-up financing. Credit guarantees, refinancing facilities, co-financing arrangements and stronger links among banks, incubators, investors and public-sector programmes could help promising start-ups bridge the gap between innovation and bankability, he said.

He also emphasised that building a sustainable start-up financing ecosystem would require coordinated efforts by commercial banks, Bangladesh Bank, government agencies, investors and entrepreneurs.

No single stakeholder can address the financing gap alone, he said.

The ultimate objective should be to establish a financing pathway through which promising start-ups can gradually move from idea-stage support and risk capital to sustainable commercial financing as their business models mature, Ezazul added.

Md Habibur Rahman, chairman of the BIBM Executive Committee and deputy governor of Bangladesh Bank, stressed the importance of developing appropriate financing facilities for start-up projects and creating a supportive financial environment for innovative and emerging enterprises.

A BIBM research team comprising Md Mosharref Hossain, Shamsun Nahar Momotaz and Tahmina Rahman, associate professors; Benazir Ishaque, lecturer; and Md Mohsinur Rahman, executive vice-president and head of SME banking at Prime Bank PLC, jointly presented a keynote paper.

The presentation was followed by an open discussion. Mohammad Tazul Islam, professor and director of training at BIBM; Syed Abdul Momen, additional managing director and head of SME banking at BRAC Bank PLC; Nawshad Mustafa, director of SME and special programmes department at Bangladesh Bank; Md Monjur Mohammad Shahriar, project director of the digital entrepreneur and innovation eco-system development project at the ICT Division; and AKM Fahim Mashroor, chief executive officer and co-founder of bdjobs.com Ltd, took part in the discussion.

Prof Md Shihab Uddin Khan, director of research, development and consultancy at BIBM, also spoke.

Ten ministries and divisions failed to spend a single penny on development projects in the first month of the current fiscal year, according to government data.

The agencies that made no progress include the Health Services Division, Medical Education and Family Welfare Division, Bridges Division, Ministry of Industries, Internal Resources Division, Ministry of Commerce, and Ministry of Civil Aviation and Tourism.

According to data released yesterday by the Implementation Monitoring and Evaluation Division (IMED), ministries and divisions spent only Tk 2,121 crore from the Annual Development Programme (ADP) in July, just 0.69 percent of the Tk 3.08 lakh crore allocation for fiscal year 2026-27.

The spending pace was similar in July last fiscal year, which eventually dragged overall ADP implementation down to 67.52 percent, the lowest in 50 years.

The sluggish start comes despite expectations that development spending would accelerate following the formation of the new political government earlier this year.

Prof Mohammad Lutfor Rahman, an economics professor at Jahangirnagar University, said the slow pace was unexpected given public expectations from the new government.

“What we, as economists, as well as ordinary people, had been expecting, was that after a prolonged period of political change and the stagnation we experienced during the interim government’s tenure, government spending would increase once the journey of a new democratic government began,” he said.

“There was a public expectation that government spending would rise because when such spending increases, it boosts demand for day labourers and daily wage workers.”

The latest IMED figures raise questions about whether bureaucratic hurdles are still delaying project implementation, Lutfor said.

“It raises the question: Are we still stuck in bureaucratic complications? Has the current government been unable to make the administrative machinery more dynamic? That is certainly a question.”

However, he said the slow spending could also reflect a deliberate effort to scrutinise projects before releasing funds.

“I don’t want to look at this entirely negatively. There may be a concern within the government itself. There may be instructions from within the government that this year’s expenditures should be made after greater scrutiny, that various projects should be reviewed again and then implemented gradually.”

Lutfor also pointed to the large fiscal deficit as a possible reason for the cautious approach.

“I suspect that the government itself may not have the willingness to spend the entire amount. Ultimately, if the government spends, it has to arrange the money from somewhere. That would have to come through borrowing, either domestic or foreign,” he said.

“So, perhaps the government is moving in a somewhat conservative manner.”

He said the government should accelerate spending, particularly on infrastructure. Citing the poor condition of many rural roads, he said inadequate maintenance increases vehicle damage and depreciation costs.

“Proper maintenance and development of infrastructure can generate broader economic benefits, while at the same time creating employment opportunities for people who work on a daily-wage basis,” Lutfor said.

He urged the government to speed up implementation and strengthen oversight.

“In particular, the government could form a high-level monitoring committee to examine which ministries are lagging behind and why they are lagging behind,” he suggested.

“This needs to be investigated. Because, for any country, the health and education sectors are among the most important sectors.”

A senior IMED official, speaking on condition of anonymity, said fund disbursement is usually slow in the first month of the fiscal year. This, and some other factors, result in sluggish ADP spending.

The official added that IMED would soon notify ministries and divisions that have either spent little or have yet to begin ADP implementation.

The National Board of Revenue (NBR) plans to introduce a data-driven system to identify discrepancies between taxpayers' declared income and their actual spending and assets, with the aim of detecting tax evasion and boosting revenue collection.

The system will have an integrated profile for every taxpayer. It will compare declared income with spending on credit cards, education, healthcare, foreign travel, bank transactions, vehicle purchase, investments in shares, and other movable and immovable assets.

The system will automatically assess whether a taxpayer's income, expenditure and assets are consistent. Significant discrepancies will trigger a higher-risk classification.

The NBR plans to complete integrated taxpayer profiles and establish an income tax data warehouse within two to three years. It will also profile high-net-worth individuals to assess whether their tax payments are commensurate with their economic capacity.
NBR officials yesterday presented separate plans of its income tax, VAT and customs wings to increase revenue at a meeting of the Parliamentary Standing Committee on the Ministry of Finance. The plans were outlined in the meeting documents.

The NBR wings presented plans covering six timeframes from the next three months to five years.

The NBR collected Tk4,15,476 crore in revenue in the last fiscal year. The BNP government has set a revenue collection target of Tk6,04,000 crore for the current fiscal year.

The plans aim to raise Bangladesh's tax-to-GDP ratio from 6.8% by two percentage points in the short term, to 10% of GDP in the medium term and 15% by 2035.

Customs attaché post at missions abroad to curb laundering

To tackle the risks of commercial fraud, revenue leakage and money laundering through trade mis-invoicing, the NBR has also proposed creating customs attaché posts at Bangladesh missions in major trading partner countries.

The proposed attachés would help collect information on the origin of imported goods, exporter details, commercial transactions and relevant foreign companies, as domestic data alone is insufficient to detect such risks.

What will be in the taxpayer profiles

The automated income and asset profiles will include taxpayers' declared income and tax payments, bank transactions, immovable property, company ownership, stock market investments, import and export volumes, withholding tax, foreign travel, bank accounts and high-value transactions, property and flat purchases and sales, vehicle ownership, high-value utility connections, rental income, and spending on education and healthcare.

For example, the NBR said a taxpayer may declare an annual income of Tk12 lakh while having Tk1.2 crore in bank deposits, purchasing a vehicle worth Tk50 lakh and land worth Tk1 crore, and travelling abroad five times a year.

Such discrepancies will be automatically flagged by the National Income Tax Data Matching System, enabling data-driven enforcement.

Curbing corporate income tax evasion

To curb corporate income tax evasion, the NBR has also proposed a system-based risk management mechanism to scrutinise specific financial indicators.

These include turnover versus declared profit, gross profit ratio, related-party transactions, interest expenses, management fees, royalties, commissions, depreciation, bad debts, related-party loans, directors' remuneration, import value versus domestic sales, and VAT turnover versus income tax turnover.

The NBR told the standing committee that it is currently developing industry benchmarks for companies in the same sector to help identify potential corporate income tax evasion.

Active taxpayer registry in major cities

The NBR also plans to launch property-based income tax compliance programmes in major cities to increase revenue from houses, flats and commercial properties.

It wants to cleanse its TIN database and create an active taxpayer registry. Those who regularly file returns and pay taxes will be classified as active taxpayers, while those who file returns but do not pay taxes will be placed in a separate category.

The NBR will also maintain separate lists of TIN holders who do not file returns, those who have not filed returns for an extended period, and individuals engaged in economic activities but without TINs.

An annual target will be set for growth in the number of active taxpayers, with the number of new active taxpayers created by each tax office included as a key performance indicator.

The NBR also plans to establish an income tax debt management system to improve the collection of outstanding taxes.

To reduce unnecessary direct contact between taxpayers and tax officials, the NBR will gradually introduce faceless assessments and audits. Tax officials will conduct assessments through a digital platform.

Integrated taxpayer accounts in 3 years

Within the next three months, the NBR will clean and classify its TIN database, prepare a list of taxpayers with the highest outstanding income tax liabilities, and identify high-risk companies, and high-net-worth individuals.

Within three to six months, it will conduct awareness campaigns to encourage taxpayers to file returns, make its High-Net-Worth Individual Unit operational, and pilot a central risk-based audit system.

Within six to 12 months, the NBR will integrate taxpayers' bank, property, vehicle and company information and pilot an automated income and asset profiling system. It will also develop electronic audit selection and an automated withholding tax ledger.

Within one to two years, the NBR plans to introduce pre-filled tax returns, nationwide risk-based audits, faceless assessments and automated refunds. It will also strengthen medium-taxpayer segmentation and build capacity in international taxation pricing.

Within two to three years, the NBR plans to establish integrated taxpayer accounts, full third-party data matching, an income tax data warehouse, automated detection of income-asset mismatches, tax gap estimation and advanced analytics-based enforcement.

Speed up auctions to ease port congestion

Customs plans to expedite auctions of uncleared and confiscated goods at Chattogram and other ports to ease congestion and boost revenue collection.

The NBR said more than Tk25,000 crore in outstanding dues is recoverable from government and private organisations. It also plans to expedite the disposal of pending cases against bonded facilities.

The NBR proposed further rationalising tax exemptions in the coming years. It said around Tk77,160 crore in tax exemptions were granted in FY26.

To address weak compliance, inadequate automation, mis-invoicing and money laundering, the NBR plans to introduce tax gap analysis, integrated automation and data integration, and AI- and machine learning-based risk management.

Attempts to contact NBR acting Chairman Ahsan Habib for comment went unanswered.

The meeting was chaired by committee chairman Mushfiqur Rahman and attended by Finance Minister Amir Khosru Mahmud Chowdhury, and other committee members.

Senior officials from the Finance Ministry, Financial Institutions Division, Economic Relations Division, NBR and Parliament Secretariat also attended the meeting.

Bangladesh's economic recovery will be delayed; claims that the economy will turn around within a year are exaggerated, said Debapriya Bhattacharya, distinguished fellow at the Centre for Policy Dialogue (CPD).

The recovery process has not gained as much momentum over the past six months as it should have, largely because of a lack of political courage and capacity on the part of the government, he added.

Debapriya made the remarks at a programme organised by the CPD yesterday afternoon to review the economic performance of the current government during its first six months.

At the review, held at the CPD's office in Dhanmondi, Dhaka, the think tank analysed 362 measures taken by the government over the past six months across nine key sectors. The programme highlighted which measures the CPD considered reassuring and which caused concern.

"I want to give them [govt] an 'A' grade, but the circumstances are dragging them towards a 'B'."

According to the CPD, the country witnessed a mixed picture in terms of the economy and good governance over the past six months. Overall, the balance has tilted more towards discomfort than relief. Of 31 key economic indicators assessed by the CPD, 19 deteriorated, while only 12 improved.

Assessing the government's overall performance, he said, "I want to give them an A grade, but the circumstances are dragging them towards a B." This means good initiatives are being undermined by weak capacity and a lack of coordination, he added.

Referring to a recently published survey showing that the prime minister is more popular than the government, Debapriya said, "The biggest challenge now is whether he can use that popularity to demonstrate political courage, put his party on the right track and manage the bureaucracy properly."

Good governance, justice, public administration

The CPD said several initiatives were reassuring, including scrapping duty-free cars and government plot facilities for MPs; austerity measures, particularly the prime minister depositing 10% of his salary into the treasury; reducing ministers' protocol; suspending government vehicle purchases; cutting food expenses; and introducing an AI-based traffic management system in Dhaka.

On the other hand, political appointments to universities, state institutions and courts based on political identity have raised concerns about institutional neutrality. The continuation of extortion and land grabbing at the local level, mob killings, violence against women and children, and the lack of effective measures to control attacks on indigenous people and minorities have also caused concern.

Debapriya Bhattacharya said political appointments are highly unacceptable.

Public financial management

The CPD identified raising the tax-free income threshold, scrapping the opportunity to legalise undisclosed money (black money), providing a 5% tax rebate on payments of up to Tk25,000, and simplifying online e-return filing as positive initiatives.

On the other hand, the CPD expressed concern over the lack of initiatives to review public-finance expenditures related to government subsidies and tax expenditures, as well as the absence of specific measures to assess sovereign debt risks.

Industry and trade

The CPD considered the expansion of bonded warehouse facilities beyond the readymade garment sector; initiatives to privatise loss-making state-owned enterprises; the signing of 21 agreements, including studies on a Comprehensive Economic Partnership Agreement (CEPA) with South Korea and a joint Free Trade Agreement (FTA) study with China; and the creation of a "Startup Fund" for young and women entrepreneurs as reassuring measures.

At the same time, the closure of 95 factories in the industrial areas of Gazipur, Savar and Narayanganj between January and August, resulting in the loss of 61,881 jobs, and the shutdown of four of the country's five fertiliser factories – with only the Ghorashal-Palash plant operating – have created serious concerns.

Banking and financial sector

The merger of five troubled Islamic banks under the "United Islamic Bank" and the appointment of administrators to weak non-bank financial institutions as part of implementing the Bank Resolution Act 2026 were identified as positive initiatives.

However, Debapriya expressed concern over the sudden removal and replacement of the Bangladesh Bank governor and questions surrounding conflicts of interest and the central bank's independence; retaining the Financial Institutions Division under the finance ministry; and the liquidity crisis and rush to withdraw deposits triggered by controversy surrounding the appointment of a chairman at Islami Bank Bangladesh PLC.

Energy and transport

The CPD considers the introduction of a fully women-operated "Pink Bus Service" to ensure safe transportation for women, keeping electricity prices unchanged for low-income residential consumers, offering 25% fare discounts on the metro rail and trains for elderly and disabled people, and inviting international tenders for offshore gas exploration as reassuring initiatives.

However, the CPD described the continuing severe gas shortage affecting the textile, steel, paper and ceramics industries due to technical problems at the Maheshkhali LNG terminal and supply constraints, as well as the lack of visible steps to utilise Bhola's gas, as concerning.

Agriculture and rural non-farm sector

The CPD said waiving agricultural loans and interest of up to Tk10,000 and allowing banks to write off loans were reassuring measures.

However, the shutdown of fertiliser factories due to the gas shortage and increased dependence on imports, failure to make fertiliser available at government-set prices, and allegations of hoarding and illegal sales are creating concern, according to the organisation.

Education

The CPD described the declaration of free education for female students up to the undergraduate level, retaining the lottery system for primary-school admissions from 2027, directly transferring overdue benefits to MPO-listed teachers through EFT, and plans to distribute free clothing and shoes to students as positive measures.

The absence of a separate education reform commission, controversy over holding HSC examinations in Chattogram despite flooding, and the failure to begin full implementation of the PEDP-5 programme were identified as concerns.

Health

The CPD considers the withdrawal or reduction of VAT and duties on dialysis filters, heart stents, pacemakers, eye lenses and raw materials for cancer treatment to be reassuring measures.

However, it expressed concern over shutting down the 5th Health Programme without an alternative arrangement, weaknesses in the measles vaccination programme despite an ongoing outbreak, and the failure to formulate a new policy for determining medicine prices.

Social welfare and social protection

Since taking office, the government has distributed 20,832 Farmers' Cards, 70,861 Family Cards and 300 Sports Cards across the country. These are positive initiatives.

However, there have been widespread local-level complaints of political influence and a lack of transparency in selecting Family Card beneficiaries, which is concerning.

Recovery scorecard

The CPD reviewed 31 indicators across six major sectors of the economy. According to the organisation, 19 of the 31 indicators deteriorated, while 12 improved.

The CPD said there had been improvements in non-NBR tax collection, ADP implementation and net deficit financing over the six-month period.

Meanwhile, NBR revenue, total tax collection, bank borrowing and net foreign assistance deteriorated.

According to the CPD, per-capita external debt stood at $55,129.9 at the end of March, up from $48,166 in March 2025. During the period, headline inflation fell to 8.3%, food inflation to 7.2%, while the wage index increased.

The situation deteriorated in terms of broad money supply and excess liquidity in banks.

Export growth stood at 3.5%, while imports grew by 18.1% and the opening of letters of credit for intermediate goods increased. Foreign-exchange reserves rose to $32.3 billion.

However, remittance growth fell to 11.8%. Overseas employment declined, the taka depreciated, the trade deficit increased to $10.4 billion and the current-account deficit widened.

The CPD said there had been no improvement in any indicator of industrial production. Progress in overall industrial production and the manufacturing sector was zero.

Regarding investment, the organisation said that although imports of capital machinery had grown, it was unclear whether this represented an actual increase in investment. Net foreign direct investment had fallen to $594 million by the end of June. The opening of letters of credit for capital machinery declined, while private-sector credit growth fell to 4.5%.

The CPD said that although there had been progress in the mineral production index in the energy and power sector, this was having no impact on the economy. Rather, declining power generation and lower industrial gas consumption were contributing to the crisis.

What needs to be done

Against this complex economic backdrop, the CPD has recommended five urgent measures for the government.

The organisation said the government should formulate a "core budget", whether or not it publishes it. A concise and realistic core budget based on actual data should be prepared for the period from October 2026 to June 2027.

There could be a revenue shortfall of around Tk1.3-1.4 lakh crore in the next fiscal year. Spending priorities should therefore be determined with this shortfall in mind.

A comprehensive reform package is also needed, it said. Specific reforms should be outlined for energy security, restructuring the banking sector, splitting the NBR into two entities, rationalising the ADP and the work of the Pay Commission.

As an urgent measure, the government should accelerate the programme to drill 150 gas wells inside the country instead of relying on expensive LNG imports.

The organisation proposed that by September 2026, the finance minister should present a roadmap to parliament outlining plans for banking-sector restructuring, a new pay scale, power-sector reforms and the broader economic situation and reform agenda.

The CPD said the government must move away from political influence and entrenched interest groups in banking, energy and contract-awarding processes and strengthen institutional capacity and good governance. "Simply changing people cannot provide a lasting solution."

Bangladesh's tea industry is producing more, yet it is struggling to compete globally. At the heart of the problem is a stubborn productivity gap – the amount of tea produced per hectare remains far below that of major tea-producing countries.

This low yield pushes up the cost of each kilogram of tea, weakening Bangladesh's competitiveness in international markets. Overall tea production has continued to rise, but the increase in output has failed to translate into higher export earnings.

Much of the additional production is being absorbed by strong domestic demand, while the industry also faces a narrow product mix and a lack of strong international brands.

Tahsin Ahmed Chowdhury, chief operating officer of Finlay Tea Company, said Bangladesh produces around 1,400kg of tea per hectare, compared with about 3,500kg in Kenya and 3,200-3,300kg in Vietnam.

"Because of the low yield, production costs rise, making Bangladeshi tea less competitive in the international market," he said.

The productivity gap translates directly into costs. Mohammad Moazzem Hossain, member and joint secretary of the Bangladesh Tea Board's Research and Development Department, said producing a kilogram of tea costs Tk200-220 in Bangladesh, against Tk100-150 in countries such as India and Sri Lanka.

That cost gap makes it difficult for Bangladesh to compete on price, particularly against producers extracting far more tea from the same land.

Domestic demand is tightening the squeeze. Bangladesh produces around 95 million kgs of tea annually, while more than 90 million kgs is consumed at home, Moazzem said. That leaves a shrinking surplus for export.

The industry is also stuck heavily in black tea, even as global demand expands for green, white, dark, and jasmine varieties. Tahsin said Chinese and Japanese producers command higher prices by branding and adding value to organic, white and jasmine teas.

"Bangladesh also needs to focus on value-added tea alongside black tea to increase exports," he said.

A weak international brand presence compounds the problem. Kazi Arfan Ullah, manager of MM Ispahani Ltd's Neptune Tea Estate, said Bangladeshi producers lack internationally recognised brands. Tea bought through local auctions is generally marketed abroad by distributors, leaving Bangladesh without a strong global tea identity.

Industry stakeholders say raising productivity and efficiency must be the priority, alongside cutting costs, diversifying products and building international brands.

Moazzem said initiatives are being taken to reduce tea prices, improve workers' living standards and install solar power in tea estates. Tahsin said unused estate land could generate solar power and support other agricultural activities, creating additional income and easing production costs. He also called for lower interest rates on industry loans.

Export earnings fall despite rising production

Bangladesh's tea export earnings have declined over the past decade despite fluctuations in production. Export revenue fell from $4.47 million in fiscal 2016-17 to $3.33 million in 2025-26, a decline of $1.14 million or 25.5%.

Earnings fell to $2.77 million in 2017-18 and $2.82 million in 2018-19 before recovering to $3.12 million in 2019-20 and $3.56 million in 2020-21. They then dropped to a decade-low $2.14 million in 2021-22.

Export earnings recovered to $2.34 million in 2022-23, $3.54 million in 2023-24 and $4.10 million in 2024-25. However, earnings fell by $770,000, or 18.8%, to $3.33 million in 2025-26.

Production figures show a different trend. Tea output in January increased from 175,000 kg in 2024 to 309,000 kg in 2025 and 573,000 kg in 2026. January 2026 production was therefore 264,000 kg higher than a year earlier and 398,000 kg higher than in January 2024, making it the highest January output in the three years.

The figures underline the sector's central dilemma: Bangladesh can increase overall tea production, but unless productivity improves and production costs fall, higher output alone will not make its tea more competitive internationally.

For the industry to overcome its long-standing export stagnation, stakeholders say Bangladesh must raise yields, improve efficiency and move beyond bulk black tea towards differentiated, value-added products supported by strong international brands.

Bangladesh has agreed to pay over $24 per million British thermal units (MMBtu) for two LNG cargoes to be delivered in September, as the country continues to scramble for supplies amid a global market squeeze triggered by the US-Israel war on Iran.

The Cabinet Committee on Government Purchase today approved one cargo from Posco International Corporation at $24.625 per MMBtu for delivery on September 13-14 and another from TotalEnergies Gas & Power Ltd, UK, at $24.25 per MMBtu for September 23-24.

Govt goes for long-term US LNG supply

The prices are more than double the $10-$12/MMBtu that Bangladesh typically paid for spot LNG before the war began in late February this year.

The latest purchases also mark another jump from the prices paid for several recent cargoes.

The government approved a cargo from Aramco Trading Singapore at $21.55/MMBtu earlier this month, while two cargoes approved last week from BP Singapore were priced at $21.878 and $21.778/MMBtu.

Another cargo approved on August 19 from Aramco Trading was priced at $23.93/MMBtu.

The rising prices are adding to the pressure on Bangladesh's LNG import bill at a time when the country is increasingly dependent on spot purchases to compensate for disruptions to its long-term supplies.

Each LNG cargo contains around 33.6 lakh MMBtu of gas, meaning the two latest shipments will each cost roughly Tk 1,000 crore at the approved prices. At the pre-war spot-market rate of $10-$12/MMBtu, a similar cargo would have cost around Tk 410-490 crore.

Govt to go for direct purchase of eight LNG cargoes
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Govt to go for direct purchase of eight LNG cargoes

Bangladesh had bought 35 spot LNG cargoes since March, according to Kpler data, as Qatar, its largest long-term supplier, cut scheduled deliveries following the outbreak of the war.

But securing cargoes has itself become increasingly difficult.

Bangladesh needs roughly 10 LNG cargoes a month to maintain its imported gas supply. Yet the government struggled to secure cargoes for the final week of August even after repeatedly floating tenders.

The latest procurement difficulties emerged after the July 21 fire and subsequent technical problems at Excelerate Energy's FSRU at Moheshkhali.

The terminal, one of the country's two LNG import facilities, went offline, cutting roughly 450 mmcfd from the national gas supply. The two FSRUs have a combined regasification capacity of about 1,100 mmcfd.

Although Excelerate resumed partial operations on August 6, the terminal suffered another disruption and ran out of LNG on August 19. It started supplying again on August 22.

But due to the shortage in LNG supply, overall national supply is far below the usual level, at 2,315 mmcfd compared with 2,650 mmcfd, resulting in a severe crisis across all sectors, including power generation and industrial production.

Before the beginning of Israel, US war on Iran, imported LNG used to cater for nearly 30 percent of gas supply of Bangladesh, according to energy ministry data.

The war and disruptions to shipping through the Strait of Hormuz have affected supplies for Bangladesh, which has a long-term LNG supply contract with Qatar.

The Gulf nation usually ships a significant share of its LNG through the Strait of Hormuz, through which roughly one-fifth of global LNG trade passes.
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In March this year, Iranian missile strikes on Ras Laffan Industrial City, home to Qatar’s largest LNG export facility, caused significant damage and affected its production, according to international media reports.

The country’s economic stabilisation remains fragile, and the recovery is likely to take longer than the government expects, said Debapriya Bhattacharya, distinguished fellow of the Centre for Policy Dialogue (CPD).

“Although several government leaders have said the recovery will take one to two years, the country is heading for a prolonged recovery,” he said while presenting a paper at a CPD media dialogue on the government’s performance over the past six months at its office yesterday.

Over the past six months, CPD found that 19 of 31 economic indicators deteriorated, and many of the negative trends were structural.

Debapriya said a longer recovery will require a core fiscal budget and the effective implementation of an integrated and coordinated reform package.

Assessing the government’s performance, the economist described the economic situation over the past six months as “mixed”, with negative trends outweighing positive ones. Many of those negative trends are entrenched and structural, he said.

The CPD assessed 31 economic indicators. Of these, 12 improved, including foreign exchange reserves, while 19 deteriorated over the past six months.

Among the indicators, revenue growth, government bank borrowing, remittance growth, overseas employment and the balance of payments all worsened.

By contrast, export growth, food inflation and implementation of the annual development programme improved compared with the same period a year earlier.

According to CPD, the government inherited weak banks, poor revenue mobilisation, fiscal constraints, subdued investment and an adverse global environment. The US-Israel war on Iran and volatility around the Strait of Hormuz have also sent energy shock waves across the world.

The local think tank reviewed 362 observations across nine areas to assess the government’s performance. Some measures offered grounds for optimism, while others raised concerns.

Among the positive measures were austerity efforts, the abolition of duty-free vehicle entitlements and the introduction of an AI-based traffic management system.

The launch of e-Return, withdrawal of the budgetary provision allowing undisclosed money to be legalised, expansion of bonded warehouse facilities and a waiver of agricultural loans of up to Tk 10,000 also offered some relief.

However, the government has taken no concrete steps to assess public debt stress. Meanwhile, 95 factories permanently shut down across three major industrial belts -- Gazipur, Savar-Ashulia and Narayanganj-Narsingdi – during the January-August period this year, resulting in 61,881 direct job losses.

According to CPD, the abrupt cancellation of the tenure of the previous central bank governor, reportedly without prior notice, and his replacement, amid potential conflict-of-interest concerns, have also raised questions about central bank independence and the basis for senior institutional appointments.

In the energy sector, the government decision to withdraw a proposed electricity tariff increase for low-income and low-use residential consumers was positive. The decision to invite international bids for offshore oil and gas exploration was also encouraging, said CPD.

But the prolonged gas crisis has exposed weaknesses in crisis management and supply planning, it noted. Technical disruptions at Moheshkhali LNG terminals, difficulties in securing replacement LNG cargoes and problems accepting cargoes have prolonged supply shortages.

According to CPD, the shortages are disrupting gas-dependent industries, including textiles, steel, paper, particleboard and ceramics.

On the fiscal front, the think tank said the government should prepare for a revenue shortfall of about Tk 1.30-Tk 1.40 lakh crore in fiscal year 2026-27, as the target is unrealistically high.

CPD said the government is unlikely to exceed the programmed budget deficit limit of 3.6 percent of GDP. The question, therefore, is how public spending can be recalibrated. Historically, no more than Tk 40,000 crore could be cut from non-ADP spending, which accounts for about two-thirds of the total budget allocation.

It said two other areas could put pressure on spending -- a decision on implementing a new pay scale and growing demands for subsidies.

To support economic stabilisation, CPD Distinguished Fellow Debapriya recommended a core budget for October 2026 to June 2027 based on real-time data and a credible fiscal framework.

This would provide a shorter outlook for FY2026 and a near-term outlook for FY2027, he said.

According to him, the core budget targets should be aligned with the Five-Year Strategic Framework for Reform and Development for July 2026 to June 2031.

Debapriya called for an integrated reform package focused on capacity and efficiency in energy security, banking, the proposed bifurcation of the National Board of Revenue (NBR), public spending, rationalisation of the annual development programme, logistics, digitalisation and the wage commission.

“Deliver a credible energy-security package instead of repeated emergency, no-tender imports. Review power purchase agreements to cut the subsidy burden; intensify offshore gas exploration,” he said.

The economist also urged the finance minister to fulfil his responsibility by placing the relevant reform action plan and key economic issues before parliament for scrutiny.

These include the pay scale, banking-sector restructuring, power-sector reform and broader institutional reforms, he added.

Prof Mustafizur Rahman, distinguished fellow of CPD, and Towfiqul Islam Khan, additional director for research at the think tank, were also present.

The country's premier bourse, the Dhaka Stock Exchange (DSE), witnessed a massive bloodbath today (24 August) as the benchmark index crashed to a two-month low.

A pervasive bearish sentiment, fueled by a worsening nationwide gas and electricity crisis and global geopolitical tensions, left nearly 90% of all traded scrips in the red.

The benchmark DSEX index plummeted by 78 points, or 1.37%, to settle the session at 5,643—its lowest point in two months. The blue-chip DS30 index followed a similar trajectory, falling 14 points to settle at 2,130.

The day's trading reflected a complete dominance of the bears. Of the 387 issues traded, a staggering 355 declined, while only 14 managed to advance and 18 remained unchanged.

Investor participation also cooled significantly, with daily turnover on the DSE falling 15% to Tk601 crore, the lowest in four months, as cautious investors stayed on the sidelines.

The sustained sell-off also eroded the market's overall valuation, with market capitalisation plunging Tk4,600 crore in a single day and pushing the total market value back below the psychological threshold of Tk7 lakh crore.

Market analysts from EBL Securities noted that the capital bourse faced heavy sell-offs as investors braced for a sharp downturn in corporate earnings. Prolonged shortages of industrial gas and electricity are expected to weigh on manufacturing firms' bottom lines, particularly as June-closing companies prepare to announce their annual earnings and dividends.

Sheltech Brokerage Limited observed that the market performance was primarily shaped by persistent selling pressure that began from the opening bell.

"Although several rebound attempts emerged during the session, they lacked sufficient conviction to develop into a meaningful recovery and were repeatedly overwhelmed by renewed selling pressure," the brokerage house stated in its daily review. It further added that selling pressure intensified in the late session, dragging the index to its intraday low.

On the sectoral front, the textile sector accounted for the highest share of turnover at 24.6%, followed by pharmaceuticals (11.7%) and general insurance (11.6%).

However, returns were universally negative across all segments. The textile sector saw a 3.3% decline in its sectoral index, while services and mutual funds shed 2.6% and 2.5%, respectively.

Among the few gainers, Meghna Condensed Milk led with a 4.16% rise, followed by Acme Pesticide and Aramit Cement. On the flip side, Fu-Wang Food was the top loser, shedding 9.91% of its value, followed by ML Dyeing, Sharp Industries, and Tung Hai Knitting.

The bearish trend was mirrored at the Chittagong Stock Exchange (CSE), where the broad CASPI index plummeted by 173 points to settle at 15,255, and the CSCX fell 86 points to 9,309.

The Bangladesh Securities and Exchange Commission (BSEC) has decided to conduct surprise inspections of brokerage firms to detect irregularities early and strengthen investor protection.

Under the new mechanism, firms will be selected for spot inspections based on information about suspicious transactions, possible irregularities or activities that could put investors' money and securities at risk.

The BSEC will form an eight-member pool comprising two representatives each from the regulator, Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and Central Depository Bangladesh Limited (CDBL). Three members will be selected for each inspection – one from the BSEC, one from CDBL and one from either the DSE or CSE.

An executive director of the relevant BSEC department will coordinate the inspections, assisted by two other commission officials.

How surprise inspections will work

On the day of an inspection, officials will meet at the BSEC office in the morning and select a brokerage from a list of firms identified as potentially risky based on suspicious activities, possible irregularities and other risk indicators.

The inspection team will then be sent to the vicinity of the selected firm before the inspection notice is issued. The BSEC will subsequently send a spot inspection letter to the firm's head, after which the team will arrive at the office and begin the inspection.

The procedure is intended to minimise the time available for firms to alter records, manipulate software or conceal irregularities.

Abul Kalam, executive director and spokesperson of the BSEC, told TBS that the commission had decided to introduce spot inspections and would implement the mechanism accordingly.

"Spot inspections allow us to get a clearer picture of the actual condition of a brokerage firm. We have already inspected one firm under this approach, and the result was good," he said.

He said the DSE and CSE already conduct spot visits, but brokerage firms can often learn about them in advance, giving them an opportunity to conceal irregularities.

However, he did not disclose when the BSEC's new mechanism would formally begin.

What inspectors will examine

The inspection team will examine the brokerage firm's Consolidated Customers' Account (CCA) and check for any shortage of securities belonging to investors.

It will also scrutinise the firm's back-office software, which contains information on clients' accounts, transactions and securities holdings, to determine whether it has been manipulated, unauthorised changes have been made or information has been concealed.

Inspectors will also check whether a firm is operating multiple back-office software systems and verify its registration certificate and compliance with regulatory requirements.

The BSEC, stock exchanges and CDBL will cross-check brokerage firms' back-office records with trading and securities-holding data maintained by the exchanges and CDBL. This will help identify securities shortages, discrepancies and the use of multiple software systems.

The move comes amid allegations that six brokerage firms have embezzled a combined Tk608 crore in recent years by allegedly misusing internal systems and back-office software, according to stock exchange sources.

The alleged amounts include Tk140 crore involving Tamha Securities, Tk128 crore involving Banco Securities, Tk65 crore involving Crest Securities, Tk14 crore involving Shah Mohammad Sagir Securities, Tk161 crore involving Moshiur Securities and Tk100 crore involving Salta Capital.

Market stakeholders said surprise inspections could help detect irregularities early and strengthen investor protection. However, they said the initiative's effectiveness would depend on regular monitoring, proper analysis of inspection findings and prompt action against violations.

Most listed mutual funds posted hefty profits in FY26, riding a strong rebound in the stock market, but the earnings recovery brought little relief to unitholders as most of the funds skipped dividends due to accumulated losses from previous years.

The aggregate profit of 15 closed-end mutual funds, which published audited financial statements for FY26, climbed to Tk 1.44 billion from only Tk 24.4 million a year earlier. What is more significant is that 11 of the funds returned to profit in FY26 after incurring losses in the previous year.

Sixteen others of the 34 listed pooled funds are under regulatory scrutiny, while three funds follow the calendar year -- January to December -- for financial reporting.

The turnaround came as the stock market staged a strong recovery during the year, helped by gradually improving investor sentiment and growing optimism over sweeping regulatory reforms after years of poor market performance.

The benchmark index of the Dhaka Stock Exchange (DSE) surged 20 per cent year-on-year in FY26, while turnover jumped 55 per cent during the period, reflecting increased investor participation and a recovery in share prices.

The funds that published their results are managed by ICB Asset Management, Strategic Equity Management, CAPM Advisory, AIMS of Bangladesh and Capitec Asset Management.

Mutual funds, as major institutional investors, benefit when the stock market performs well because a rise in share prices boosts capital gains and the value of their investment portfolios.

Akramul Islam, head of research at Royal Capital, said mutual fund returns largely depend on stock market performance, as fund managers earn from capital gains through buying and selling shares, in addition to dividends, interest income and other investment returns.

“With share prices of many listed companies recovering during FY26, fund managers were able to book significant capital gains,” he said.

Funds with diversified portfolios and exposure to fundamentally-strong companies particularly benefited from the market rebound as the prices of their underlying securities appreciated during the year.

Fund managers generally prefer blue-chip and fundamentally strong stocks to minimise investment risks. Blue-chip stocks gained about 20 per cent during the year, contributing substantially to the bottom-line growth of many mutual funds, according to market analysts.

The improved market conditions also enabled fund managers to rebalance their portfolios and take advantage of changing valuations, helping them realise gains from investments accumulated at relatively low prices during the prolonged market downturn.

Under the securities rules, mutual funds are required to invest at least 60 per cent of their total assets in listed securities and bonds, with the remaining portion allowed to be channelled into money market instruments.

In practice, however, many fund managers injected as much as 80 per cent of their assets into the capital market.

Among the closed-end funds, Capitec Grameen Bank Growth Fund, managed by Capitec Asset Management, posted the highest profit of Tk 165 million in FY26.

Grameen One: Scheme Two, managed by AIMS of Bangladesh, followed with a profit of Tk 150 million, while ICB AMCL Third NRB Mutual Fund reported a profit of Tk 140 million.

Most funds skip dividends despite hefty profits

Despite the sharp improvement in profitability, most of the funds have not declared dividends for FY26.

Of the 15 funds that published audited financial results, only four announced cash dividends ranging from 4 per cent to 10 per cent.

Reliance One, the first scheme of Reliance Insurance Mutual Fund, declared the highest dividend of 10 per cent cash. ICB AMCL First Agrani Bank Mutual Fund declared a 4 per cent dividend, while Capitec Grameen Bank Growth Fund and Grameen One: Scheme Two announced 9 per cent cash dividends each.

Except for ICB AMCL First Agrani Bank Mutual Fund, other closed-end funds managed by ICB Asset Management skipped dividend payments for FY26.

That is because the funds are still carrying substantial accumulated losses from previous years, said Investment Corporation of Bangladesh (ICB) Chairman Abu Ahmed.

The funds are required to maintain provisions against previous unrealised losses before considering dividend payments to unitholders.

The prolonged market downturn had caused significant erosion in the value of many portfolios, leaving the funds with negative retained earnings.

“As the funds had negative retained earnings due to previous losses, they were not in a position to pay dividends even after adjusting for this year’s improved earnings,” Mr Ahmed said.

He said the funds were launched when the stock market was at a very high level, and the subsequent sharp fall in share prices substantially reduced the value of their investments.

Although the market has recovered over the past year, the funds have not yet fully recovered their previous losses, he added.

Among the 34 closed-end mutual funds, 30 are trading at discounts. Market capitalisation of all these funds stood at Tk 30.7 billion, while the Assets under Management (AUM) stood at Tk 44.5 billion as of Sunday.

Canadian Prime Minister Mark Carney announced retaliatory tariffs on the United States on Saturday, after walking away from a "bad deal" on trade in a deepening rift between the longtime allies.

Negotiations between the neighboring countries broke down Friday in Washington, putting into force new 50-percent US tariffs impacting about $20 billion worth of goods, or 5.5 percent of Canadian exports to the United States.

Impacted products range from hockey sticks to cement.

"You're at war when you get attacked. We got attacked," Carney said.

US President Donald Trump had said Washington "should be able to have a deal with Canada," citing his "good relationship" with Carney.

But on Saturday, Canada's prime minister said Trump set conditions that were ultimately unacceptable even though earlier talks had been positive.

"In recent days, the United States proposed new terms that were uneconomic, unfair and undermined the net benefits for Canada, and called into question the reliability of any deal," Carney said in Ottawa.

"We cannot accept what they've offered, and we will not give what they've asked."

New Canadian tariffs will notably target the US steel and dairy industries and take effect on September 8. More details would come next week, Carney said.

A senior US official characterized this week's talks in Washington as candid and not acrimonious.

US Trade Representative Jamieson Greer told Fox News on Saturday that Washington was "moving forward with measures that respond to Canadian retaliation." He also said no new talks were planned with Canadian negotiators.

'Significant pressure'
Canada has been seeking relief from Trump's tariffs on autos, steel and aluminum, which have battered the country's economy, forced job losses and strained what was once an iron-clad trade relationship.

The White House had alleged "discriminatory treatment" by Canada against US alcohol, automobile and dairy products in introducing the duties.

They were originally set to take effect Wednesday, before Trump issued a three-day reprieve citing progress in talks.

Carney said one reason the deal collapsed was US negotiators at the 11th hour introducing restrictions on Canadian trade deals with other countries.

US negotiators also made unacceptable "threats" to the French language and "Quebec culture," he said, referring to the French-speaking province in eastern Canada.

The escalating trade war was met with anger by Democratic lawmakers and governors from border states including Minnesota, New York and Washington, blaming Trump for triggering chaos that will raise costs on US businesses and families.

"Needlessly picking fights with our allies and raising prices here at home. That's Trump's economic policy in a nutshell," New York Governor Kathy Hochul posted on X.

Beyond the latest tariffs, the US and Canada still have to agree on revisions to the North American free trade agreement, USMCA, which Trump declined to renew in its current form.

Trump's threats to make Canada the 51st US state have also antagonized Canadians.

Lunch money
Carney has repeatedly said relations with the US have been forever altered, and that Canada must reduce reliance on its southern neighbor, which currently accounts for roughly 70 percent of Canadian exports.

"We've been under no illusions. We recognized from the start that America has changed," Carney said Saturday. "We recognize that sometimes, its signature was written in pencil."

Carney spoke with provincial leaders to outline next steps.

One of them, Ontario Premier Doug Ford, said Canadians must remain united.

Trump "can't be trusted, simple as that," Ford told reporters. "President Trump is the type of person who would steal your lunch money."

The Business Roundtable, a group of 200 chief executives of leading US corporations, warned the new tariffs "risk raising costs for American businesses and families," and urged both governments to resume negotiations.

Thailand is preparing to overhaul the rules and investment incentives governing data centres, with the government seeking to ensure that future projects deliver measurable benefits to the Thai economy while managing their heavy demands on electricity and water.

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said the policy review was intended to keep pace with rapidly evolving technology and ensure that investment in the sector creates genuine economic value for Thailand.

The government and the Board of Investment (BOI) have already begun reassessing how data centre projects are screened, with greater attention being paid to benefits to Thailand, energy and water efficiency, and environmental impacts.

Until now, government policy has largely focused on attracting data centre investment through BOI incentives. Rapid growth in the industry, however, has prompted a broader reassessment of that approach, with investment value alone no longer expected to determine whether a project deserves government support.

Incentives to be tied more closely to benefits for Thailand

Under the revised approach, authorities will look more closely at what Thailand receives in return for granting incentives. A key consideration will be how individual projects benefit Thai people and contribute to the domestic economy.

The assessment will therefore go beyond the amount of capital brought into the country. Authorities will also consider whether projects strengthen Thailand’s digital infrastructure, generate wider economic activity and create meaningful domestic benefits.

“This review is a complete overhaul, with the value to the country’s economic system as the starting point. We must consider comprehensively how the benefits will accrue to Thai people, while also taking environmental issues involving water and electricity, as well as the various incentives, into account,” Ekniti said.

Resource consumption is another central concern because large data centres require substantial amounts of electricity and can use significant volumes of water for cooling. Electronic waste generated by their operations also needs to be properly managed.

The new framework is therefore expected to place clearer requirements on operators to account for their electricity and water consumption, with the aim of preventing rapid digital industry expansion from placing an excessive long-term burden on Thailand’s energy and natural resources.

As AI and data centre activity expands, the government faces the challenge of accommodating rising infrastructure demand without compromising energy and resource security.

The policy review is intended to strike a balance between attracting investment and ensuring that the country’s electricity and water systems can support it sustainably.

Ekniti acknowledged that Thailand does not yet have a fully unified system for overseeing the entire data centre industry.

Some operators can establish businesses in Thailand without applying for BOI investment promotion. This limits the government’s ability to manage the sector as a whole, particularly in areas such as resource consumption and the effects of large projects on the power system.

The government therefore wants a regulatory mechanism that extends across the industry, covering both projects receiving BOI privileges and data centres established through other investment channels.

The Cabinet on August 5 approved a draft Prime Minister’s Office regulation establishing a national policy mechanism for the data centre sector. It is intended to coordinate policies, standards and guidelines used by government agencies when approving, licensing or promoting data centre projects, or providing services to data centre operators.

The broader approach is expected to involve agencies responsible for investment, energy and natural resources, including the BOI, the Ministry of Energy and the Ministry of Natural Resources and Environment.

The change represents a shift away from treating data centres purely as investment projects towards viewing them as strategic infrastructure whose development intersects with the economy, technology, energy security and environmental management.

Thailand’s reassessment comes amid a broader international shift in the treatment of data centres. Governments, regulators and cities in several countries have introduced or proposed restrictions as the rapid expansion of AI drives concerns over electricity costs, water consumption, land availability and pressure on local infrastructure and communities.

Australia plans to establish an Office of AI to coordinate AI policy and standards. The planned framework will include requirements governing where large data centres can be built and how they use electricity and water.

The Australian government has indicated that legislation is expected to be introduced early next year. Australia currently has no dedicated AI law and instead relies on privacy and consumer protection legislation alongside a voluntary AI ethics framework.

European cities tighten controls on power and land

Amsterdam imposed a one-year moratorium on new data centre developments in 2019. In April 2025, the Dutch capital went further by barring new facilities or expansions within the municipality until at least 2030.

At national level, the Netherlands introduced restrictions on hyperscale data centres in 2022, limiting them to two designated areas. Microsoft nevertheless secured approval in January 2026 for an Amsterdam project divided into three separate towers, each falling below the relevant size threshold.

Around Dublin, Ireland’s grid operator had effectively blocked new data centre connections from 2021 amid concerns that the facilities were putting pressure on electricity infrastructure. That restriction ended in December 2025, but new connections are now required to provide their own on-site power generation.

Denmark, meanwhile, has proposed legislation that would place new data centres at the bottom of the priority list for grid connections as available capacity becomes tighter.

The proposal has the backing of parties representing around 80 percent of the Danish parliament and would give priority to households, healthcare, industry, transport and renewable energy projects.

US states impose restrictions and moratoriums

Several US states and local authorities have also tightened their approach.

In Pennsylvania, Governor Josh Shapiro signed an executive order requiring companies seeking to develop AI data centres to meet environmental and transparency safeguards and secure approval from local communities.

The order also removed data centres from the state’s Fast Track permitting programme and barred agencies under the governor’s authority from signing non-disclosure agreements with developers.

Texas Governor Greg Abbott ordered a pause on approvals for new data centre projects through the state’s grid interconnection process amid concerns that rapidly rising electricity demand could threaten reliability.

Developers will also have to disclose more information on projected electricity and water use, tax incentives, ownership structures and measures intended to reduce effects on surrounding communities.

New York Governor Kathy Hochul imposed a one-year construction moratorium on data centres consuming 50 megawatts or more, making New York the first US state to enact a full moratorium of this kind.

During the suspension, the state’s Department of Environmental Conservation will withhold new discretionary permits while standards are developed for assessing the environmental effects of data centres.

In Maine, Governor Janet Mills vetoed bipartisan legislation that would have imposed an 18-month moratorium on new data centres consuming more than 20 megawatts. Mills supported the principle of a temporary pause but objected to the bill because it did not provide an exception for a specific project in the town of Jay.

Residents of Monterey Park, California, took an even stronger position in June 2026, voting to permanently prohibit data centres following community opposition to a planned development.

The international trend highlights how the AI boom is increasingly becoming an infrastructure and resource-management issue as well as a technological one. For Thailand, the policy challenge is similarly shifting towards how to accommodate digital investment while protecting electricity and water security, managing environmental effects and ensuring that the economic gains remain within the country.

Japanese silicon manufacturer Tokuyama is adding production facilities in Vietnam and Malaysia for a key chip material as part of efforts to diversify its supply chain.

The move is expected to reduce the company’s reliance on concentrated production in Japan and mitigate the risk of supply disruptions.

The plant in Vietnam, inaugurated last week, will grind, clean and analyse polysilicon, an essential raw material for semiconductor wafers. Tokuyama is investing US$60 million in the facility, which is ultimately expected to reach an annual capacity of 4,000 tonnes. Following a trial operation period, commercial production is scheduled to begin in 2027.

Speaking at the plant’s inauguration ceremony in HCM City, Tokuyama Chairman Hiroshi Yokota said the facility marked a major step in supporting Tokuyama’s growth strategy.

The plant will provide a solid overseas base as the company restructures its polysilicon production network, which has so far been concentrated at Tokuyama’s plant in Japan.

Workers will crush polysilicon rods into small pieces that can be easily fed into customers’ furnaces. The process relies on manual labour to minimise the risk of contamination by metal particles that machinery could generate, while allowing fine adjustments during processing. It therefore requires a skilled and reliable workforce.

Next spring, Tokuyama is expected to complete a polysilicon synthesis and deposition plant in Malaysia. The facility will be operated by a joint venture with the Republic of Korea’s OCI, with total investment estimated at around $300 million.

Once both Southeast Asian plants become operational, Tokuyama’s total production capacity, including its Japanese plant, will increase 50 percent to 12,500 tonnes per year.

Tokuyama, which can refine polysilicon to a purity level with impurities reduced to just one part per billion, ranks third globally in semiconductor-grade polysilicon production, with a market share of around 20 percent. However, this concentration has also made its sole production facility a potential vulnerability, as any shutdown could disrupt supplies across the industry.

Tokuyama President Tomohiro Inoue said customers have increasingly demanded diversified sources of supply since the COVID-19 pandemic.

The Japanese Government has provided Tokuyama with a 4 billion JPY ($25.2 million) subsidy to support its entry into the Vietnamese market. The company has decided to distribute production facilities across friendly Southeast Asian countries to secure stable supplies as chipmakers such as Rapidus and TSMC establish manufacturing facilities in Japan.

According to a report by the Semiconductor Industry Association (SEMI), silicon wafer shipments are expected to reach 15.5 billion square inches by 2028, up around 20 percent from 2025. Demand for ultra-high-purity polysilicon is rising as investment in artificial intelligence (AI) drives growth in components such as high-bandwidth memory.

Inoue said customer forecasts indicated that demand would exceed the capacity of Tokuyama’s Japanese plant around 2027. Based on current projections, the additional output from Vietnam and Malaysia is expected to be fully absorbed within three to four years.

Tokuyama’s Vietnam plant has the potential to nearly double its capacity. The company will consider expanding capacity at all three facilities, as its Japanese plant is already nearing its production limit.

India has received 29 foreign direct investment proposals worth 48.95 billion rupees ($511.5 million) under a new automatic route that allows investors from land-bordering countries, including China, to hold non-controlling stakes of up to 10 percent, the government said on Friday.

The investments span information technology, artificial intelligence, manufacturing, pharmaceuticals, data centres and transport services, India’s commerce and industry ministry said.

The disclosures offer an early indication of investor use of rules introduced in May that eased approval requirements for companies with limited, non-controlling ownership from countries sharing a land border with India.

Under the revised framework, investors with non-controlling ownership of up to 10 percent from land-bordering countries, mainly China, may invest through the automatic route, subject to applicable sectoral caps and other conditions.

Previously, foreign investors with any beneficial ownership linked to countries sharing a land border with India generally needed prior government approval under rules introduced in 2020, including where such ownership was small.

“The 29 investments have been reported by investors/entities based in jurisdictions including Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg and the Cayman Islands,” the ministry said in a statement.

Runner Automobiles PLC is set to manufacture cars of Chinese electric vehicle maker BYD in Bangladesh, marking a strategic shift for the company beyond its traditional two- and three-wheeler business.

Runner has completed a technical agreement with BYD following a feasibility study, paving the way for local production of BYD electric cars. The company will invest in factory expansion and machinery for EV manufacturing, according to a disclosure on Dhaka Stock Exchange website yesterday.
The move comes as Runner’s financial performance is recovering from a sharp downturn. Standalone revenue rose 28 percent to Tk 563 crore in FY2024-25, while operating profit increased to Tk 110 crore. Net profit recovered to Tk 7 crore from a loss of Tk 70 crore in FY2022-23.

However, high financial expenses continue to weigh on earnings, making the EV investment both a growth opportunity and a financial challenge.

Runner’s board has approved raising Tk 250 crore through preference shares, with at least half of the proceeds to be converted into equity later. The company also plans to double its authorised capital to Tk 400 crore from Tk 200 crore, subject to regulatory approval.

For BYD, local manufacturing would establish a production foothold in Bangladesh after the Chinese EV maker entered the market through imports in 2024.

Runner will continue importing and marketing BYD vehicles until local production begins, said an official of the company.

The market has already responded positively. Runner Automobiles’ share price rose 1.53 percent to Tk 53 yesterday, close to its 52-week high of Tk 54.

Deposits in no-frill accounts (NFAs) increased 23.93 percent year-on-year to Tk 9,010 crore at the end of the April-June quarter of 2026, according to Bangladesh Bank data.

The total number of NFAs stood at 3.66 crore in the June quarter, an increase of 9.98 percent from the same period of the previous year.
NFAs are low-cost accounts opened with initial deposits of Tk 10, Tk 50 or Tk 100 for low-income people, students aged up to 25, street children and working children.

Excluding student banking, street children and working children accounts, the number of Tk 10/50/100 accounts stood at 2.95 crore, with deposits of Tk 5,490.92 crore.

Accounts under social safety net programmes accounted for the largest share, at 36.78 percent, followed by farmers’ accounts at 36.33 percent.

NFAs also play an important role in distributing inward remittances. Cumulative remittances received through these accounts reached Tk 835.43 crore by June.

During the quarter, 7.87 lakh new student banking accounts were opened under Bangladesh Bank’s latest guidelines.

A total of 40,607 accounts for street children and working children were also maintained by 18 banks with support from 49 nongovernmental organisations.

Bangladesh Bank has taken various initiatives to ensure access to financial services for people from all segments of society. As part of these initiatives, the central bank has instructed banks to open accounts for marginalised people with initial deposits of Tk 10, Tk 50 or Tk 100.

These accounts require neither a minimum balance nor any service charge or fee. Relatively higher interest rates than those on existing savings accounts are offered on these accounts to support low-income people.

Generally known as no-frill accounts, NFAs target farmers, readymade garment workers, extremely poor people and beneficiaries of social safety net programmes, among others.

The accounts also include student banking accounts, which allow students aged up to 25 to open accounts with an initial deposit of Tk 100.

Up to the June 2026 quarter, the government had disbursed subsidies or salaries to 7,189,291 NFAs held by various groups of marginalised people.

The Invest Bangladesh Authority, formed by merging the Bangladesh Investment Development Authority (Bida), Bangladesh Economic Zones Authority (Bepza), and Public-Private Partnership Authority (PPPA), formally began operations by unveiling a new logo yesterday (23 August), its first working day.

Operating under the Prime Minister's Office, the authority will serve as the country's apex investment promotion agency.

The new authority aims to provide investors with a single, coordinated platform for approvals, registrations, import-export services, incentives, industrial zones and other government services.
The Invest Bangladesh Act, 2026, which came into force through a gazette notification on 20 August, provides the legal framework for the merger. It also sets out provisions for defining procedures and timelines for licences, approvals and government services.

The government expects the unified structure to make it easier to attract domestic and foreign investment by providing a one-stop service and reducing fragmentation among investment-related agencies.

Chowdhury Ashik Mahmud Bin Harun, popularly known as Ashik Chowdhury, has been appointed chairman of the Invest Bangladesh Authority for one year on a contractual basis. He previously served as executive chairman of Bida, and Beza and chief executive officer of PPPA.

Nahian Rahman Rochi and Air Vice Marshal (Retd) Md Shaharul Huda have also been appointed members for the same period. Both previously served as executive members of Bida.

The government also promoted Md A Razzaque Sarker, director general of the Government Employees Hospital, to the secretary rank and appointed him as a member of the authority.

The appointments were announced through separate gazette notifications issued by the Ministry of Public Administration on 21 August.

"This is more than an institutional merger. It is about organising the government more effectively around the investor," Ashik Chowdhury said. "By uniting our capabilities, we aim to provide clearer accountability and more coordinated support across the investment journey."

Rochi told TBS that the initiative came from investors' demand for a single point of access to government services.

"Our objective will be to make the Invest Bangladesh Authority that single point of access, providing investors with a more coordinated, seamless and accountable experience throughout their investment journey," he said.

The authority will also continue operating BanglaBiz, the country's single digital platform for investment services, offering online and time-bound access to business licences and permits.

A visit to the authority's office in the capital found officials from Bida and Beza working from their existing rooms and desks yesterday. Former PPPA officials were also continuing to work from the agency's previous office in Agargaon.

Officials said there are plans to eventually bring employees of all three agencies under one roof. For now, however, they are carrying out their new responsibilities from their existing offices.

Regular officers and employees of the stakeholders will be absorbed into the Invest Bangladesh Authority in equivalent positions, with continuity of service and existing benefits protected.

Consultants, outsourced personnel and daily-wage workers will continue under their existing contracts or orders.

Around 2.5 lakh yards of chemically treated fabric have been damaged at Tithi Textile in Madhabdi, Narsingdi, after gas pressure remained at zero for the last four days, bringing production and generators to a halt, said Sonet Saha, the factory’s maintenance manager.

The damage is only part of the problem. Buyers from different countries are cancelling orders, while the factory is struggling to pay workers’ wages and may have to compensate buyers for their losses, said production manager Shihabul Islam.
Similar scenes are now common across Narsingdi, where a severe gas shortage is forcing many factories to shut down and leaving large quantities of chemically treated fabric unusable.Narsingdi has more than 3,000 factories, including around 2,500 textile, dyeing, sizing, spinning and garment factories. Around 400 of them depend on gas and need an uninterrupted supply at 10-15 PSI (pounds per square inch), according to local businessmen.

The national gas crisis began on July 21 after a technical fault at a floating LNG terminal off Moheshkhali in Cox’s Bazar disrupted supplies. Repeated supply problems have since affected power plants and factories, hurting industries that serve both export and domestic markets.

Against daily demand of 3,800 mmcfd, gas supply fell from around 2,650 mmcfd (million cubic feet per day) before the disruption to 2,175 mmcfd on August 19. It rose slightly to 2,300 mmcfd on Saturday, according to Petrobangla.

The crisis in Narsingdi began in the first week of August and became much worse over the past five days. More than 100 factories have been forced to shut, said Abdullah Al Mamun, spokesperson for the Bangladesh Textile Mills Association (BTMA) and managing director of Abed Textile Processing Mills Ltd.

A visit to 11 industrial establishments in Narsingdi Sadar and Madhabdi found most boilers shut because of the gas shortage.Technicians said chemically soaked fabric normally has to be processed within 16 hours. But in some areas, gas pressure has remained at zero for three to four days, stopping machines and making fabric left midway through processing unusable.

Nannu Molla, general secretary of the Chowala Textile Owners Association, said the pressure had not improved, leaving piles of chemically treated grey fabric on factory floors.

“The fabric has been lying there for a long time and has started to rot and smell bad. We want the government to resolve the crisis immediately,” he said.

Md Bipul Molla, proprietor of Moslem Weaving in Madhabdi, said production had fallen sharply because factory owners could not predict when gas and electricity supplies would be available.

At Bhai Bhai Sizing Mill in Chowala, only two employees were found during a visit. Owner Ataur Rahman Mithu said he had closed the factory indefinitely because of the lack of gas pressure.

“How can we keep workers idle and continue paying their wages? We have given them leave until further notice. We will resume operations as soon as we get gas,” he said.

“Many of us have taken bank loans to run our businesses. If this situation continues, we will have no choice but to sell our factories and end up on the streets,” he added.

Selim Ahmed, son of the owner of Habib Textile Mills in Madhabdi, said the industry was already struggling with a business slowdown, rising production costs, competition from modern machinery and growing debt.

“The gas and power crisis over the past month has made the situation even worse. Production may stop, but workers’ salaries, fixed costs and loan instalments continue,” he said.

Nizam Uddin Bhuiyan Liton, chairman of the Bangladesh Textile Dyeing and Printing Association, Narsingdi, and owner of Madhabdi Dyeing Finishing Mills Ltd, said Narsingdi supplies around 75 percent of the country’s fabric demand.

“Now that gas and electricity supplies are unavailable, around 80 percent of the mills in Narsingdi and Madhabdi have shut down. If the crisis continues, we will not be able to pay workers’ wages, gas and electricity bills or meet other expenses. We will be left with nothing,” he said.

He said saving the industrial units should be a top priority because thousands of workers and their families depend on them.
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DAILY LOSSES MOUNT AS COSTS RISE

Abdullah Al Mamun said Narsingdi has gas infrastructure, but industrial factories are not receiving enough gas. As a result, 1-1.5 crore yards of fabric are being damaged during dyeing, printing and processing.

He estimated that industrial units in Narsingdi are losing Tk 400-500 crore a day, leaving factory owners who took bank loans in serious financial difficulty.

“Businesspeople were already frustrated by the natural and man-made disasters the country has faced in recent years. Now we are facing a severe gas and electricity crisis. Earlier, we talked about shortages, but now there is virtually no supply at all,” Mamun said.

“If this situation continues, factory owners will be unable to pay workers’ wages, bank interest, utility bills and other expenses as the end of the month approaches,” he said.

He also warned that prolonged uncertainty could increase worker dissatisfaction and create a risk of unrest and disruption.

Mamun urged the government to set a clear timeframe for restoring gas and electricity supplies to normal.

Rashedul Hasan Rintu, president of the Narsingdi Chamber of Commerce and Industry, said even alternative fuels had failed to keep factories operating at full capacity.

Mohammad Badrul Huda, deputy director of the Department of Environment in Narsingdi, said some factories use jhut, or textile waste, as fuel but are not allowed to use wood.

“Environmental laws require permission from the Forest Department to cut down any government or private tree. In reality, these laws are not being followed, causing environmental damage,” he said.

However, a visit to the Chowala industrial area found workers at some factories burning wood in steam boilers. Md Shakhawat, a boiler operator at Haque Textile, said factories had turned to wood because the price of textile waste had increased.

Each factory is spending more than Tk 12,000 a day on firewood, he said.

Maksudur Rahman, manager engineer of Titas Gas’s Narsingdi office, said the government had ordered priority gas supply to the Ghorashal-Palash Urea Fertiliser Factory. The factory was receiving gas at 200 PSI, while the remaining supply was being shared among CNG stations, industries and residential consumers.

Titas could not meet the demand of factory owners because of the ongoing gas crisis, he said.

“The situation may improve next week,” Rahman added.

Invest Bangladesh, the country’s new apex investment promotion agency, began operations yesterday, bringing the Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA) and Public-Private Partnership Authority (PPPA) under one umbrella.

Operating under the Prime Minister’s Office, the new agency was formed following the publication of the gazette notification under the Invest Bangladesh Act, 2026. The Act came into effect on August 20.

The three agencies will continue to function as before, with existing investor services continuing under the new authority.

Their physical integration is expected to take place gradually, although their functions have already been brought under Invest Bangladesh.

The merger is intended to create a single front office and provide more coordinated support throughout the investment lifecycle.

Invest Bangladesh combines investment facilitation, policy coordination, economic zone development and public-private partnership functions, according to a statement from the agency.

The Act provides an integrated framework for economic zones, free-trade zones and other declared industrial areas, while setting out procedures and timelines for licences, approvals and government services.

A SINGLE WINDOW FOR INVESTORS

“This is more than an institutional merger. It is about organising the government more effectively around the investor,” said Ashik Chowdhury, chairman of Invest Bangladesh.

“By uniting our capabilities, we aim to provide clearer accountability and more coordinated support across the investment journey. We will continue to respect our heritage while forging new chapters as a bigger and stronger team.”

The move aims to give domestic and foreign investors a single point of access to government investment services, according to Invest Bangladesh.

Investors are expected to benefit from more coordinated access to approvals, registrations, import-export services, incentives, industrial zones and other government services.

The law also provides for investment and business services to be brought under a single digital platform, paving the way for single-window clearance and online processing of licences and approvals.

It also simplifies approval procedures for smaller public-private partnership projects and allows underused government land, facilities, shares and rights to be put to productive use.

Economic zones will remain a priority because they offer better access to utilities and transport networks, the agency said.

However, Invest Bangladesh will also facilitate projects outside economic zones, including through the use of underutilised state assets, depending on the project and investor requirements.

MERGER TO PROCEED IN PHASES

The merger will be implemented gradually, with the existing assets, records, agreements, liabilities and other matters of BIDA, BEZA and PPPA transferred to Invest Bangladesh.

Regular officers and employees of the three agencies will be absorbed into the new authority in equivalent positions, with continuity of service and existing benefits protected, according to Invest Bangladesh.

The three agencies have a combined sanctioned strength of 681 posts, of which 297 are currently filled, according to a manpower statement prepared for the merger.

BEZA has 172 employees against 348 sanctioned posts, while BIDA has 117 against 295 posts and PPPA has eight against 38. This leaves 384 vacant posts across the three agencies, with 176 at BEZA, 178 at BIDA and 30 at PPPA.

BIDA and BEZA officials are currently based at Biniyog Bhaban in Agargaon, while PPPA operates from a nearby building. PPPA will continue to operate from its existing premises for now and carry out its functions as before, a PPPA official said. The agency may eventually be relocated to Biniyog Bhaban, the official said.

Under the law, the Invest Bangladesh Authority will operate as a statutory body, with its headquarters in Dhaka. With government approval, it may establish branch offices across the country and liaison offices abroad.

The authority will be governed by a board comprising a chairman and seven members. The chairman will also serve as its chief executive.

Invest Bangladesh is expected to play a role similar to Invest India, Pakistan’s Special Investment Facilitation Council (SIFC) and the Board of Investment of Sri Lanka (BOI), all of which focus on promoting investment in their respective countries.