The government has given special priority to the creative economy, aiming to unlock its economic potential, bring the sector into the mainstream economy and raise its contribution to 1.5 per cent of GDP while creating 500,000 new jobs.

The government's creative economy strategy seeks to open up new opportunities for young people, artists, artisans, content creators and creative entrepreneurs, while broadening the country's economic growth drivers and enhancing Bangladesh's cultural and creative footprint in global markets.

According to the budget document, the government has also planned to strengthen coordination between the public and private sectors by formulating time-bound short, medium and long-term action plans for the sustainable development of the creative industries.

The government is planning to establish Creative Hubs at national and regional levels featuring cultural venues, bookstores with reading facilities, cineplexes, small cafeterias and dedicated spaces for showcasing and marketing region-specific products.

A 10-year investment strategy and time-bound action plan are being formulated to develop regional Creative Hubs across the country.

A feasibility assessment is also being undertaken on an urgent basis to establish a world-class Central Creative Hub on 160 acres of land in Purbachal under a Public-Private Partnership (PPP) model.

The government is also assessing the feasibility of establishing Creative Hubs on unused land at Karwan Bazar, adjacent to the Office of the Survey General in Tejgaon, and on vacant industrial plots under the Bangladesh Small and Cottage Industries Corporation (BSCIC).

Initiatives are being taken to establish Creative Hubs at divisional, district and upazila levels, as well as at the Bangladesh Shishu Academy and Bangladesh Shilpakala Academy.

Innovation Hubs have already been established at engineering and technology universities, while a roadmap is being prepared to gradually establish such hubs at universities and undergraduate colleges across the country.

The government is also focusing on identifying and developing creative economy-based products under its 'One-Village, One-Product' initiative.

These include handloom products, pottery, weaving products, shital pati, shataranji, wooden toys, handmade jewellery and terracotta products.

A 'National Pool of Designers' comprising leading local designers is being established to improve the quality and design of creative products.

The BSCIC Design Centre will also be modernised and upgraded to international standards through a project in collaboration with universities and renowned fashion designers.

The government has also undertaken programmes to promote cultural tourism through the restoration of cultural heritage, regional traditions and heritage buildings. Two pilot projects based on two to three themes will initially be implemented for heritage restoration and the organisation of international festivals.

To promote tourism, a specialised international-standard training institute will be established, while an 'International Hospitality Benchmark' will be introduced to ensure internationally recognised training standards in tourism-related trades, including culinary arts.

The government also plans to finalise an integrated Tourism Master Plan incorporating the sector's potential, diversity and modern creative themes.

For global marketing of creative products, the government will support Bangladeshi content creators and companies in accessing international markets. A national brand titled "Made in Bangladesh" will be launched to showcase the country's creative potential at international festivals and markets.

The government also plans to establish technologically advanced studios meeting international standards to support the film industry and participation in OTT platforms.

A performance-based grant scheme will be introduced to provide financial support to new entrepreneurs and promote export-ready commercial projects in the creative sector.

The budget document also said initiatives would be taken to integrate rural artisans into global value chains, improve product quality and diversify designs while bringing artisans into mainstream financing and development processes.

A senior Finance Ministry official said the initial Tk 3.0 billion allocation would support development of the creative economy in FY2026-27.

"In addition, a further Tk 5.0 billion will be mobilised from the Corporate Social Responsibility (CSR) sector of Bangladesh Bank," the official said.

Sugar prices are rising as the ongoing gas crisis is curbing production at local refineries, which had stepped up output after three major suppliers exited the market.

The latest squeeze also comes amid a fresh increase in global demand as India, a long-time sugar exporter, has returned to the international market as a buyer recently, adding pressure on international prices.

Over the past week, sugar prices have increased by Tk 230-240 to Tk 3,780 a maund (37.32kg), according to traders at Chattogram’s Khatunganj-Chaktai market, the country’s largest wholesale market for essential commodities.

Retail prices have also followed suit, rising to Tk 110-120 per kg after remaining steady at Tk 105-110 for at least a month until a week ago, according to Trading Corporation of Bangladesh (TCB) data.

The latest squeeze comes after three major suppliers, S Alam Group, Bashundhara Group and City Group, fell out of the market.

S Alam’s refinery has remained largely out of production since late 2024 amid financial and operational troubles.

Bashundhara has also ceased to be a major active supplier since 2024, while City Group stopped sugar production after operating until June.

The shutdowns prompted Meghna Group of Industries, Abdul Monem Group, Deshbandhu, Delta Food and other refiners to increase production to help fill the supply gap. But their ability to make up the shortfall has recently been constrained by the country’s worsening energy crisis.

“Our dependence on Meghna Group of Industries and other refiners has increased as major suppliers such as S Alam and City Group are no longer supplying the market. But they are also unable to meet demand due to gas shortages. As a result, we have to buy sugar from the mills at higher prices,” said Anam Saudagar, a wholesaler at Khatunganj.

SM Muzibur Rahman, head of accounts at Meghna Group of Industries, told The Daily Star that inadequate gas supply was preventing the company from operating its mills properly.

“Due to the recent gas crisis, one of our two mills was shut down for several days because of low gas pressure, while the other was operating at only around 20-30 percent of capacity,” he said.

“As a result, we were unable to supply the market according to demand for several days, which was one of the reasons behind the increase in prices,” he added.

“Both mills are currently operating, but we still cannot run them at full capacity due to the gas shortage,” Muzibur said. “Under normal circumstances, we used to supply around 3,200-3,500 tonnes of sugar to the market daily. Now, we can supply only around 2,000-2,600 tonnes.”

The reduced supply has already reached retailers.

Tanvir Hossain, manager of Ridoy Enterprise at Oxygen Kitchen Market in Chattogram, said retail prices of sugar had increased by around Tk 10 a kg over the past week.

“We are now selling it at Tk 120-125 a kg. We have no option but to raise retail prices when our purchase costs increase,” he added.

Meanwhile, global market conditions are adding to the pressure.

India, traditionally a major sugar producer and exporter, is turning to the international market after domestic sugar prices rose nearly 40 percent in two months amid lower production and tightening supplies, according to Reuters

The Indian government has allowed duty-free imports of 1 million tonnes of raw sugar until October 31, marking the country’s first sugar imports in nearly a decade.

Benchmark white sugar futures in London and raw sugar futures in New York ​jumped by as much as 4 percent after India announced plans to allow duty-free imports on August 20, Reuters added.

Wholesaler Anam said the shift in India’s position was adding to concerns among Bangladeshi traders.

“Prices are also rising in the international market. India, which has traditionally been a sugar exporter, is now importing sugar, creating additional demand in the global market. We fear prices could rise further if the situation continues,” he said.

The Bangla QR transactions have nearly doubled in volume while their total monetary value has almost tripled since the use of Bangla QR was made mandatory across Bangladesh, according to data for the eight-week period from 28 June to 22 August 2026.

The total transaction value through Bangla QR during the period stood at Tk3,578.74 crore, according to the latest data.

The growth came after Bangladesh made Bangla QR mandatory as the standard QR payment system, replacing other types of QR codes. The requirement for all proprietorship businesses to use Bangla QR instead of other QR payment systems came into effect on 1 July.

According to the data, an average of 1.78 lakh transactions were conducted through Bangla QR each day at the beginning of July 2026. The average daily transaction value at the time was around Tk37.33 crore.

By last week, however, the average number of daily transactions had risen to 3.03 lakh, while the average daily transaction value increased to around Tk110.38 crore.

The number of merchants accepting Bangla QR has also increased significantly.

Around 16 lakh merchants had Bangla QR facilities on 1 July. The number has now surpassed 30 lakh, indicating a sharp expansion in the adoption of the payment system.

Both private and state-owned banks have played a role in expanding Bangla QR adoption.

Stakeholders expect the wider use of Bangla QR to contribute significantly to the expansion of digital transactions across the country.

Government bank-borrowing debt deepens with the aggregate sum borrowed from the domestic banking sources far overshot the upwardly revised target to hit Tk 1.68 trillion in the past fiscal year.

To meet budget shortfall, the government had initially set a bank-borrowing target at Tk 1.04 trillion for the fiscal year 2025-2026 but less-than-expected level of revenue mobilisation prompted it to raise the target to Tk 1.18 trillion in the middle of the fiscal.

But the growing fund appetite of the government because of poor revenue collection and higher operational expenses surpassed the target by a large margin by the end of the fiscal year, latest statistics show.

According to the monetary survey by Bangladesh Bank (BB), the government borrowed Tk 1.68 trillion from the banking sector in the FY'26-some Tk 500 billion above the upwardly revised target.

Central bankers and money-market experts say the pressure of bank borrowing was heavily felt from the last quarter of the FY'26 following the USA-Iran crisis in particular as gas-and fuel-oil prices mounted due to supply-chain disruptions.

The war in the Middle East prompted the government to increase its borrowing from the banks to finance the growing volume of subsidies, which is largely reflected in the bank-borrowing scenario of the government, according to them.

Seeking anonymity, a BB official said the government bank-borrowing-dependency got enhanced hugely in the past fiscal due mainly to widening revenue shortfalls amid higher operational expenses.

"And the pressure will mount further in the coming days as the government is set to implement a new pay scale for government service- holders," he said,

According to the data from the National Board of Revenue (NBR), the agency collected a total of Tk 4.15 trillion in revenue in FY26, and it was Tk 875.27-billion of the revised target of Tk 5.03 trillion.

In the fiscal budget for 2025-26, the government kept aside Tk 60 billion as subsidy for the import of liquefied natural gas (LNG). However, at the end of the year, the subsidy had multiplied to Tk166 billion.

Chairman of Policy Exchange Bangladesh Dr M. Masrur Reaz says it is indicated that the fiscal consolidation is immediately needed, which is not happening.

He observes that the bank-borrowing projection has become extremely unpredictable because of the revenue collection which is also not predictable.

The economist says the commercial banks may get short-term benefits amid plummeting private-sector-credit growth. But the private-sector- credit demand is expected to increase in the coming days under this elected government.

"If it (private credit growth) happens and the current trend of government bank borrowing continues, it will definitely lead to crowding-out effect," he predicts.

Mr. Masrur was suggesting that the government should make the budgetary expenses more realistic, based on revenue-mobilisation trend, to avert such funding mismatch.

The government has withheld clearance for two vessels hired to install Bangladesh's first privately funded submarine cable, preventing them from entering the country's territorial waters and further delaying the project amid regulatory hurdles.

The Posts and Telecommunications Division has informed the relevant authorities that no objection or clearance should be issued to the private company for the cable-laying operation without a formal recommendation from the division.

In a letter signed by Deputy Secretary Kaniz Fatema, the division said CdNet Communications had directly approached the National Security Intelligence, seeking necessary permission for two cable-laying vessels, CS Blue and Endeavour, to enter Bangladesh's waters and install the submarine cable.

The letter said another private company, Metacore Subcom, had previously sought recommendations from the Posts and Telecommunications Division to obtain clearances from the foreign affairs and home affairs ministries and the NSI for a similar project.

The division, however, said Bangladesh Submarine Cables PLC, a government-funded company under the division, operates in the sector.

"Considering violations of licence conditions, national security, and the security of substantial government and shareholder investments in Bangladesh Submarine Cables, no decision has so far been taken by this division regarding clearance for establishing a private submarine cable," the letter said.

It requested the authorities not to grant any no-objection certificate or clearance to the private company without a forwarding letter from the division.

Kaniz Fatema could not be reached for comment despite attempts by TBS.

According to a TBS report in April, the Bangladesh Private Cable System consortium, comprising Summit Communications, CdNet Communications and Metacore Subcom, had invested about $53 million, or Tk650 crore, in preparatory work but was facing delays over inter-ministerial approvals.

The consortium had separately sought permission from the government for the two hired vessels to enter Bangladesh's waters to begin cable installation.

Expatriate Bangladeshis sent home $2.148 billion in remittances during the first 22 days of August, marking a 25.6 percent year-on-year increase, according to the latest Bangladesh Bank data.

Between August 1 and August 22 of the current fiscal year (FY 2026-27), total remittance inflows registered a 25.6 percent growth compared to $1.711 billion received during the corresponding period of the previous fiscal year (FY 2025-26).

During the three-day period from August 20 to August 22, the country received $117 million in foreign remittances.

Cumulative remittance inflows from July 1 to August 22 for FY 2026-27 reached $5.006 billion, reflecting a 19.5 percent yearly growth over the $4.188 billion recorded during the same timeframe in FY 2025-26.

Central bank statistics show a steady upward momentum in official remittance channels as formal banking networks continue to draw strong expatriate inflows.

Energy experts, industry representatives and renewable-energy advocates have opposed a proposed "cross-subsidy surcharge" on customers buying electricity directly from private merchant power plants, arguing that they should not have to bear the financial losses of state-run utilities.

The issue came up at a public hearing of the Bangladesh Energy Regulatory Commission (BERC) yesterday (23 August) at the International Mother Language Institute in Dhaka on proposed charges for merchant power plants.

Under the open-access framework, large industrial consumers will be able to buy electricity directly from privately owned merchant power plants, including renewable-energy projects, while using state-owned transmission and distribution networks.

Distribution companies have proposed the cross-subsidy surcharge to compensate for potential revenue losses as large customers shift to merchant power.

Stakeholders said they were willing to pay reasonable transmission and distribution charges based on actual network use but opposed additional fees intended to compensate utilities for lost revenue.

They warned that such charges could make merchant power commercially unviable and discourage private investment, particularly in renewable energy.

Professor M Shamsul Alam, energy adviser to the Consumers Association of Bangladesh, questioned the assumption that distribution companies would face a major revenue crisis if consumers bought electricity directly from private generators.

He said the distribution companies were profitable and collectively earned at least Tk1,500 crore between 2021 and 2025.

Abdul Hasib Chowdhury, a professor at Bangladesh University of Engineering and Technology, also questioned the basis of the surcharge.

"The cross-subsidy is arising from government policy. It seems that there is an attempt to recover that from merchant power. I find that problematic," he said.

Technical committee proposed lower charges

Stakeholders also raised concerns over differences between the charges proposed at the hearing and those recommended by a technical committee formed by the Bangladesh Power Development Board.

The committee submitted its report in February. An evaluation committee later reviewed the proposals before the BERC hearing.

The evaluation committee recommended an overall open-access tariff of Tk0.70-1.43 per kilowatt-hour, depending on the distribution utility and voltage level. The proposed transmission charge was Tk0.37-0.38 per unit.

Where a merchant power plant and its customer fall under different distribution utilities, an additional injection charge of Tk0.70-1.14 per unit was recommended.

Prof Shamsul criticised a proposed transmission charge of Tk0.47-0.48 per unit for merchant power users, compared with about Tk0.38 for government and private power plants.

He also questioned a proposed Tk0.50 energy management and settlement charge, calling for it to be based on actual service costs.

Mohammad Nure Alam, vice-president of the Merchant Power Plant Developers Association, urged the government to provide a favourable regulatory environment for renewable-energy-based merchant power.

He proposed waiving the cross-subsidy surcharge and other key charges for 10-15 years to help the emerging market develop.

Mostafa Al Mahmud, chairman of the Bangladesh Solar and Renewable Energy Association, said the government should allow the sector to grow without sovereign guarantees or subsidies.

Power Division representative Md Solaiman said the government wanted merchant power to remain commercially viable without creating an unsustainable financial burden.

BERC Chairman Jalal Ahmed, who presided over the hearing, said stakeholders could submit further observations and proposals in writing by August 27.

Scammers reach people in many ways, including phone calls, text messages and social media advertisements. But recent accounts from victims show that Facebook has become a favourite hunting ground, especially for lower and middle-income people facing financial difficulties and with little knowledge of cybercrime and fraud.

The bait is usually simple -- easy and cheap loans or high, quick returns on small investments.

Take Touhida Akter, a homemaker, who came across a Facebook page offering loans of between Tk 50,000 and Tk 5 lakh. The interest rate was just 5 percent, far below what banks charge now.

As the housewife was struggling financially and badly needed cash, she contacted the page, which identified itself as “Ashar Alo Foundation”. Touhida was asked to pay Tk 450 for a loan application form and stamp.

After making the payment, she was asked to deposit Tk 1 lakh as a refundable security deposit, which would be returned after she paid two instalments. Desperate to get a Tk 5 lakh loan, Touhida deposited her life savings.

“But after the money was transferred, the page stopped responding,” the housewife recounted to The Daily Star.

Embarrassed by what had happened, Touhida said she had not even told her family.

She is among many people who have fallen victim to online loan scams operating through social media platforms.

LOAN APPS HARVEST CASH, PRIVATE DATA

As with social media pages, scammers are also defrauding people through mobile phone applications.

Rabiul Alam, a private-sector employee and one of the victims, said some apps simply steal money, while others offer loans at extremely high interest rates, sometimes as high as 800 percent.

During the installation of those apps, scammers get control of borrowers’ private information, including contacts, photos and videos, from their phones.

When borrowers refuse to pay the inflated interest demanded by the scammers, they face cyber harassment and threats to make their private information public.

Rabiul was defrauded through an app called FinCash, which offered loans of up to Tk 30,000. Similar apps and websites include Money, PopKash, CashNow, Drutoloan, Fast Loan, Shathi Loan and Quickloan.

The Bangladesh Bank says such loan-offering apps are illegal.

ONLINE TRAPS SPREAD TO GAMBLING, CRYPTO

Loans are not the only bait of online scam. Numerous websites and social media pages offer gambling, betting and cryptocurrency trading, all of which are illegal in Bangladesh.

Law enforcement agencies say they have found some mobile financial service providers allegedly facilitating loan transactions and other unauthorised dealings during their investigations.

A Bangladesh Bank inspection found that Fasset, a UAE-based virtual asset platform established in 2019, operates in Bangladesh through its website, mobile app and social media channels.

The inspection report said the company is licensed by Dubai Virtual Assets Regulatory Authority (VARA), but is not authorised or licensed to operate in Bangladesh.

Although its primary markets include the UAE, Indonesia, Malaysia, Pakistan, Turkey and Bangladesh, Fasset reportedly allows Bangladeshi users to access its services.

Bangladeshi users can register on the Fasset app and use its peer-to-peer (P2P) marketplace, a senior central bank official said.

He said users can purchase USDT (Tether) by transferring Bangladeshi taka through local bank accounts or mobile financial services.

“Users can then use the USDT to buy cryptocurrencies such as Bitcoin and Ethereum, or sell them back for taka,” he said.

In a recent notice, the Bangladesh Bank said some entities are using social media and other online and offline channels to lure people with promises of unusually high returns and defraud them.

“In many cases, fraudsters steal money by tricking customers into sharing one-time passwords (OTPs) or by falsely claiming to offer refunds, social safety net payments, Hajj-related funds, or other government benefits. As a result, many people are suffering financial losses.”

The central bank advised the public not to engage in financial transactions with such entities, saying that customers who choose to transact with them will bear responsibility for any resulting losses.

SCAMMERS TARGET PEOPLE WITH FEWER OPTIONS

Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management (BIBM), said illegal apps target lower and middle-income people, particularly those facing financial difficulties and with little knowledge of cybercrime and fraud.

The central bank and the government should raise awareness of such fraud and illegal websites and apps through notifications and other means, said Ezazul, a former Bangladesh Bank official.

Law enforcement and intelligence agencies should also be more active in detecting such fraud and taking action against those involved, he said.

Arief Hossain Khan, executive director and spokesperson of the Bangladesh Bank, told The Daily Star that financial intelligence matters are handled by the Bangladesh Financial Intelligence Unit (BFIU), while criminal investigations fall under law enforcement agencies.

The central bank becomes directly involved when banks are implicated, he said.

Payment service providers (PSPs) and mobile financial service (MFS) operators are regularly inspected by the Payment Systems Department, while operators themselves often identify suspicious transactions and take action, according to the central bank spokesperson.

“However, it is impossible for operators to screen every transaction, meaning some suspicious transactions may go undetected,” he said.

NEW LAW TARGETS ONLINE GAMBLING

The government recently enacted the Gambling Prevention Act, replacing the colonial-era Public Gambling Act, 1867, to tackle online gambling, sports betting and digital gambling networks.

The new law criminalises not only conventional gambling but also various activities conducted through digital and virtual platforms. These include online and remote gambling, online betting, sports betting, live betting, casino betting, virtual betting, fantasy betting and e-sports betting.

The law also covers placing bets involving money through digital games or platforms, as well as using digital wallets, mobile apps, websites and servers for gambling purposes.

The offence carries a prison sentence of two to seven years and a fine ranging from Tk 2 lakh to Tk 5 crore under the law.

The BFIU is also working to combat gambling, betting, cryptocurrency trading and other forms of fraud conducted through e-commerce.

Iqtiaruddin Md Mamun, head of the BFIU, told The Daily Star that the agency is taking strict action against gambling, betting and other forms of digital fraud.

The BFIU detected and closed more than 20,000 mobile financial service accounts last month that were linked to gambling, betting and cryptocurrency trading, he said.

Syed Harun Or Rashid, joint police commissioner of the Cyber Security and Support Centre (South) at Dhaka Metropolitan Police, told The Daily Star that police take complaints seriously and investigate them to identify those involved and bring them to justice.

“When victims approach us, we advise them to file cases, and we investigate based on verified information rather than complaints alone. We also monitor social media for online gambling and other forms of fraud. In some cases, we initiate cases based on our own findings.”

Harun said currently they have around 4,000 general diaries (GDs) and more than 250 pending cases related to such crimes.

“Online fraud has become so widespread that people must also remain vigilant,” he said.

The country's premier bourse started the week on a dismal note as the benchmark index shed over 60 points today (23 August), ending a temporary breather from the previous session.

Investor sentiment was severely dampened by the ongoing energy crisis and uncertainty surrounding the upcoming earnings and dividend announcements for June-closing companies, according to market insiders.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) plummeted by 63 points, or 1.10%, to settle at 5,722. The blue-chip DS30 index followed a similar trajectory, falling 17 points to close at 2,145.

Market breadth was overwhelmingly bearish, with 324 issues declining compared to only 32 advancing, while 30 remained unchanged.

Despite the sharp fall in prices, market participation saw a slight uptick, with total turnover rising 6% to Tk711 crore.

According to EBL Securities' daily market review, the capital bourse resumed its downtrend as the persistent energy crisis continues to stifle industrial production.

Concerns are growing over an increase in factory shutdowns and greater reliance on costly alternative sources of power, which are expected to put further pressure on corporate earnings in the coming quarters, the brokerage said.

Sheltech Brokerage Limited noted that the market witnessed significant intraday volatility.

While buying interest in the early minutes lifted the benchmark index to a high of 5,814.13 points, sellers quickly regained control. Selling pressure intensified sharply in the late session, dragging the DSEX toward its intraday low of 5,715.98 points before closing near that level.

On the sectoral front, the textile sector dominated market activity, accounting for 23.3% of the day's total turnover, followed by general insurance at 13.8% and pharmaceuticals at 11.9%.

Performance across segments was almost entirely negative; the financial institutions sector faced the steepest correction of 2.5%, followed by general insurance and life insurance. In a rare divergence, the ceramic sector emerged as the lone gainer with a marginal 0.8% return.

Individual stock performance featured GBB Power as the top gainer with a 9.55% surge, followed by Sharp Industries and Emerald Oil.

On the losing side, Nurani Dyeing, New Line Clothings, and Tung Hai Knitting were among the worst performers.

The bearish trend was mirrored at the Chittagong Stock Exchange (CSE), where the broad CASPI index dropped by 61 points to settle at 15,429. Trading activity in the port city bourse saw a catastrophic decline, with turnover plunging by 66% to reach only Tk6.46 crore.

The Bangladesh Securities and Exchange Commission (BSEC) has moved to update the regulatory framework governing merchant bankers and portfolio managers after nearly three decades, aiming to strengthen licensing requirements, eligibility criteria, financial capacity, risk management and fiduciary duties towards investors.

The commission has formed a four-member committee to review and amend the Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rules, 1996. The BSEC's Law Department's CMRRC Department recently issued an order in this regard.

BSEC Director Md Mahmudul Haque has been appointed chairman of the committee. Its other members are Additional Director Mohammad Golam Kibria, Assistant Director Amit Kumar Saha and Assistant Director Md Mehran Ali, who will serve as member secretary.

The committee has been tasked with reviewing the existing rules and submitting a report containing necessary amendment proposals within 30 working days.

The move comes as the regulatory framework for merchant bankers and portfolio managers, introduced in 1996, has remained largely unchanged despite significant changes in the country's capital market and financial sector over the past three decades.

The framework may also strengthen requirements for managing investors' money and assets, protecting client interests, maintaining confidentiality, managing conflicts of interest and ensuring accountability for failure to discharge responsibilities.

Merchant bankers currently undertake issue management, underwriting and portfolio management. Their role is also expanding into corporate bonds, sukuk, SME listings and other financial products. The revised rules may define the activities that different types of merchant bankers can undertake based on their capacity and risk profile.

BSEC Executive Director and spokesperson Md Abul Kalam told TBS that the 1996 rules are outdated and need to be updated in line with current market conditions. The commission is also reviewing licensing conditions, activities and eligibility criteria for merchant bankers based on national and international practices.

Particular attention will be given to the activities of full-fledged merchant bankers and their fiduciary duties towards investors, he said.

The existing rules were introduced in 1996 based on the capital market structure at the time. Since then, the market has expanded significantly, while financial products, investment patterns and technology-driven services have undergone substantial changes.

Although the rules have been amended at different times, the version available on the Bangladesh Securities and Exchange Commission (BSEC) website was last updated on 24 August 2021.

The revised framework is expected to clarify licensing requirements and the scope of merchant banking activities, strengthen accountability in managing investors' funds and create greater opportunities for capable institutions to introduce new financial products.

As Europe tightens its packaging rules, Vietnamese exporters are facing a new reality: what wraps a product may matter almost as much as what is inside. The European Union’s new requirements are forcing businesses to rethink packaging while opening the door to a more circular industry.

The EU’s Packaging and Packaging Waste Regulation (PPWR) entered its general application phase on August 12, covering packaging placed on the EU market regardless of its material or country of origin.

For Vietnamese exporters, the rules mean that packaging can no longer simply be a protective layer around a product. Its design, recyclability, recycled content and chemical safety are increasingly be-coming part of the conditions for selling products in the bloc.

The impact could extend across Vietnam’s major export sectors, including food, seafood, coffee, cashew, textiles, footwear, electronics, cosmetics, wood and other consumer goods.

“The new regulation affects the entire production and export chain, from design for recycling and the use of recycled materials to traceability and the control of substances of concern,” said Nguyễn Thi, a lecturer at the Hà Nội University of Natural Resources and Environment.

The challenge comes as trade with the EU continues to expand. According to the Ministry of Industry and Trade, Vietnamese exports to the bloc exceeded US$56 billion in 2025, up 8.6 percent from a year earlier, while exports reached $25.78 billion in the first five months of 2026, up 13.3 percent year on year.

The PPWR introduces requirements covering food-contact packaging, sales packaging, grouped pack-aging and transport packaging.

From August 12, all packaging must comply with new limits on substances of concern, with particular attention to per- and polyfluoroalkyl substances in food-contact packaging.

This is particularly relevant to Vietnamese seafood exporters, which use food-contact packaging such as plastic trays, wrapping films and plastic bags. Companies will need to ensure that information on such content is available in the technical documentation for their packaging.

The PPWR establishes a phased transition, with technical requirements for recyclability and recycled content becoming progressively stricter over the coming years. From 2030, all packaging placed on the EU market will have to be designed to be recyclable.

Food-contact plastic packaging will have to contain at least 30 percent recycled plastic where PET is the main component and 10 percent for packaging made from other plastics such as polypropylene and polyethylene. The requirements will rise to 65 percent and 25 percent by 2040, respectively.

The PPWR also seeks to reduce unnecessary packaging. By 2030, manufacturers and importers will have to ensure that the weight and volume of packaging are reduced to the minimum necessary to perform its intended function. For grouped, transport and e-commerce packaging, the proportion of empty space will be limited to 50 percent.

Labelling requirements will also be introduced according to the PPWR’s implementation timetable, with harmonised information on packaging materials intended to help consumers sort waste.

The PPWR highlights a growing trend: to enter the EU market, goods will increasingly be judged not only by the product itself but by its entire life cycle, according to Thi.

The EU-Vietnam Free Trade Agreement has given many Vietnamese products tariff advantages, but as tariffs fall, the bloc is steadily raising standards on environmental protection, emissions, traceability, the circular economy and supply chain responsibility.

The Ministry of Industry and Trade has also said these green requirements are increasingly becoming an important condition for Vietnamese goods to maintain their foothold in the EU market as well as global markets.

Yet experts say the PPWR should not be viewed simply as another trade barrier but a wider shift in global trade in which environmental requirements are increasingly becoming conditions for market access.

Experts say that Vietnamese companies that invest early in recyclable packaging, recycled materials, traceability and circular production could gain an advantage not only in Europe but also in other devel-oped markets with similar environmental requirements.

Meeting these standards could create opportunities for businesses to expand into other markets, said Sita Zimpel, a project director at GIZ Vietnam, adding that this could turn compliance spending into longer-term investment in production efficiency and product differentiation.

The changes could also reshape Vietnam’s packaging industry, forcing it to move towards a more circu-lar model. Instead of producing packaging, using it and sending it to waste streams, companies would need to build stronger links among packaging manufacturers, waste collectors, recyclers and users of recycled materials.

Annie Trần, senior manager at Informa Markets Vietnam, said the packaging industry was at an im-portant transition point towards a more circular model as environmental requirements increasingly became mandatory conditions in international trade.

Businesses should regard changes in materials, standardised design, greater recycling and circular sup-ply chains as long-term development strategies rather than merely a way to comply with regulations, she said.

She stressed that this could create opportunities for investment in food-grade recycled plastics, recy-cling technology, testing and certification, waste sorting and collection, and new packaging materials.

However, Nguyễn Ngọc Sang, chairman of the Vietnam Packaging Association, said domestic packaging producers were of small and medium sizes with limited capacity for investment.

Policymaking should therefore provide an appropriate roadmap, particularly as Vietnam still lacks spe-cialised research centres for the packaging industry, he said.

One of the biggest challenges for Vietnamese companies is likely to be the supply of recycled material that meets EU standards.

According to Thi, Vietnam does not yet have a fully developed system of standards for food-grade re-cycled plastic, while domestic testing and certification capacity remains limited.

Food-grade recycled PET, or rPET, is particularly challenging because recycled material must meet stringent safety requirements before it can be used in packaging that comes into direct contact with food.

The problem starts with the quality of collected waste. Trần Đức, head of external affairs at Suntory PepsiCo Vietnam, said the quality of recovered plastic remained unstable because waste collection relies heavily on informal collectors.

For PET bottles, impurities can account for 40-70 percent of recovered material depending on the batch, making bottle-to-bottle recycling more difficult and increasing production costs compared with virgin plastic.

That created a potential mismatch between the EU’s growing demand for recycled materials and Vi-etnam’s ability to supply them at the required quality and cost, he said.

According to the Vietnam Association of Seafood Exporters and Producers, packaging commonly used in seafood exports, including plastic bags, trays, boxes, cardboard cartons, plastic pallets and wrapping films, falls within the scope of the PPWR.

Companies will therefore need to review their packaging systems, prepare documentation demon-strating compliance and keep pace with technical guidance from the EU.

Vietnam is developing its own packaging regulatory framework through extended producer responsi-bility (EPR), recycling obligations, financial contributions for waste treatment and measures to reduce difficult-to-degrade plastic products.

Nguyễn Văn Phan from EPR Vietnam Office under the Ministry of Agriculture and Environment, said the framework would not only improve the implementation of EPR in Vietnam but also help business-es gradually meet increasingly stringent requirements in international markets, particularly the EU’s new rules on packaging and the circular economy.

Experts say faster development of standards for food-grade recycled plastic, testing capacity, waste collection and sorting infrastructure and a reliable market for recycled materials will be critical to help-ing Vietnamese companies adapt.

The broader challenge is whether Vietnam can build the industrial ecosystem needed to compete in a global economy where sustainability is becoming a condition of market access.

For exporters, early preparation will be equally important.

Companies would need to audit their existing packaging, identify materials and chemicals that may pose compliance risks, work with suppliers to develop recyclable alternatives and prepare technical documentation to ensure compliance, Thi said.

The Treasury's latest daily cash and debt balances statement showed total public debt outstanding at $40.047 trillion on ‌Tuesday, a total that includes Treasury securities held by the public of $32.266 trillion and intra-governmental debt holdings of $7.782 trillion.

The federal government's IOU has now more than doubled in less than a decade, from $19.95 trillion when President Donald Trump was sworn in for the first time in January 2017. Roughly one-third of that increase occurred during two years of frantic government borrowing to fund the Covid-19 pandemic responses undertaken by Trump and former President Joe Biden, while the fiscal policy choices of both presidents combined with long-running tax-and-spending imbalances account for the rest.

Budget watchdog groups have anticipated crossing the threshold ​for weeks and issued stark warnings that a full-blown debt crisis could erupt unless lawmakers confront an unsustainable fiscal outlook and raise taxes, cut spending or both.

"Forty trillion dollars of debt doesn’t exist solely on the government’s ledgers; ​it is felt throughout the economy and finds its way to the pocketbooks of people one way or another," said Maya MacGuineas, president of the nonpartisan Committee for a Responsible ⁠Federal Budget.

"The more we borrow, the more we exacerbate inflation, squeeze out other priorities in the budget, and leave ourselves vulnerable to emergencies at home and turmoil abroad," MacGuineas said in a statement just after the Treasury data was released.

She said the $40 ​trillion figure was reached less than five months after debt reached $39 trillion, and has quadrupled in less than 20 years after taking until 1981 to reach $1 trillion for the first time.

"It is staggering how predictable the fiscal decline of a global power ​can become," MacGuineas added.

Global US creditors may already be growing wary, with demand from foreign investors holding nearly one third of Treasuries declining over the past year.

Days after a $25-billion auction of 30-year Treasury bonds went off at the highest yield since 2021, yields on so-called long bonds on Tuesday hit their highest levels in nearly two decades as investors demanded greater compensation in the face of hefty US government bond issuance. Yields move inversely to bond prices.

On Wednesday, US Treasury Secretary Scott Bessent took a bold step to push long bond yields back down, announcing a doubling of buyback sizes ​for 10- to 30-year Treasuries to at least $4 billion per operation.

Higher Treasury yields at the longer end tend to push up interest rates for mortgages, car and commercial loans. With the mountain of debt showing no signs of abating, Trump on Wednesday ​repeated his frequent demand for lower rates.

Asked at the White House whether Americans should worry about bond market volatility, Trump said: "I don't think so at all. I think we have a very powerful country, and we're powering through these ridiculous interest rates — they're ridiculous. Look, ‌when our country ⁠is strong, interest rates should go down."

PANDEMIC SPENDING, AND THEN SOME

The Treasury last week reported the fourth-highest monthly deficit in US history — $432 billion for July — as tariff refunds turned customs receipts negative for the third month in a row and outlays for Social Security and Medicare benefits for seniors continued to grow. The deficit for the first 10 months of fiscal 2026 has already exceeded the total gap for all of fiscal 2025 with two months to go in the current fiscal year.

Trump has largely ignored the dwindling number of fiscal hawks in his Republican Party, championing heavy spending across his two terms. Public debt rose by $7.8 trillion during Trump's first term, with more than half of it accumulating during the pandemic response over his last nine months in ​office.

Since Trump took office a second time in January 2025, the ​US debt load has increased by $3.8 trillion, for total ⁠growth of $11.6 trillion across his two terms so far.

Public debt increased by $8.4 trillion during Biden's term, also marked by heavy Covid-19 recovery spending, but driven as well by big-ticket outlays for infrastructure investment, clean energy subsidies and other priorities championed by his Democratic Party.

The Committee for a Responsible Federal Budget estimates that the policy choices of Trump and Biden have increased the federal ​debt trajectory beyond what would have accumulated under the existing spending statutes when each took office.

For instance, Trump's landmark second-term legislative package — the One Big Beautiful Bill Act — will ​add another $4.7 trillion in debt, according ⁠to the Congressional Budget Office, the nonpartisan bookkeeper for federal lawmakers.

Trump has branded his second presidency as one focused on cost-cutting, marked by early federal agency job cuts ordered by the non-governmental Department of Government Efficiency. But much of his spending reductions have targeted so-called "discretionary" programmes, the smallest portion of the federal budget. The US spends roughly $7 trillion annually, and 60 per cent of it is earmarked for so-called "mandatory" programmes, including payments for Social Security, Medicare, Medicaid and veterans' care, that generally grow to keep pace with living costs.

Another $1.1 trillion pays the interest ⁠on US borrowing, ​the cost of which rises as the debt pile grows and as interest rates climb. The 2025 fiscal-year budget marked the first time debt service ​costs exceeded Pentagon funding. In the first 10 months of the 2026 fiscal year, interest costs have eclipsed Medicare healthcare outlays to become the second-largest line item in the federal budget, behind the Social Security pension system.

The US is spending more to fund the retirement and healthcare costs of the "baby boom" ​generation, straining the trust funds behind Social Security and Medicare even as payroll and income tax revenues fall short of covering federal costs.

Exceptionally low river levels in Europe hit hard by drought and record heat have plunged transporters into turmoil this summer, driving up costs that everyday consumers could end up bearing.

Major rivers on the planet’s fastest-warming continent, including the Rhine and Danube, have sustained water shortages that scientists directly link to climate change.

The situation is especially critical in Germany on the Rhine, the core of the European inland waterway transport network.

“The situation is unprecedented,” a spokesperson for Maersk, the Danish shipping giant, told AFP. “Today, most of the inland ports along the Rhine cannot be reached by barge anymore.”

Clecat, a European association that represents freight forwarders, agreed that the “most acute disruption has been on the Rhine”.

It said that at Kaub, a critical bottleneck for traffic on the river, the water gauge fell to around six centimetres (2.4 inches) on August 14, below the previous record low of 25 centimetres in 2018.

“The effects are being felt along the major industrial corridor from Rotterdam”, Clecat said, adding that “Conditions are also severe on parts of the Danube, particularly in Serbia, Hungary and Romania”.

One workaround for logistics operators is to move as much cargo off rivers as they can to trains or trucks.

“The aim is to... keep the distances travelled on the Rhine as short as possible,” transport company Contargo told AFP.

But the opportunities for rail and road transport are limited.

Jean-Laurent Kistler, development director at the French waterways authority (VNF) in Strasbourg, where the Rhine forms the border with Germany, estimated that transporting the load of a single barge required “100 to 200 trucks”.

But many products transported in bulk -- such as chemicals, hydrocarbons, construction materials or grain -- are not easily transferred to containers. VNF Strasbourg says the load carried by ships on the Rhine fell from an average of 1,500 tonnes to just 400 tonnes in August.

The Clecat association noted the low river levels had already resulted in “higher transport costs, delays, postponed shipments and reduced production flexibility”.

“The ships have to sail with lighter loads than usual to have less draught,” said Alexandre Charpentier, transport specialist at the consulting firm Roland Berger, referring to how deep a vessel sits in the water.

“With fixed costs remaining the same, this leads to very significant unit cost increases,” he said. Operators pass on the resulting costs by applying low-water surcharges, which they introduce progressively if river levels keep falling.

These costs have reached more than 1,000 euros ($1,170) in surcharges per container at the most strained points, such as Kaub or Cologne, according to Contargo’s rates.

“It can quickly double for container freight” and “be even more drastic for bulk cargo”, said Pierre Cossart, director of Sogestran Logistics.

COSTS PASSED ON?

According to Clecat, “whether higher logistics costs translate materially into consumer prices depends on the duration of the disruption, the commodity and companies’ ability to absorb or pass on costs”.

But it noted that “For many bulk commodities, transport is an important component of the delivered price, so sustained increases will ultimately be felt further down the supply chain.”

Charpentier said it was too early to forecast eventual price increases for consumers, but warned that the extra costs were difficult to absorb in full.

With drought episodes only expected to increase, operators are banking on better-suited vessels and greater intermodality, or the added use of trains and trucks.

But resilience also comes from water management, according to the VNF’s Kistler.

While France has built a series of reservoirs and diversion channels along its portion of the Rhine to manage the flows, on the German side the river runs freely and is highly dependent on rainfall.

“We went from 10 ships a day to 25 (on Wednesday), 14 of them loaded,” said Kistler, adding that it was “still far from the optimal load”.

Gold climbed to a more than three-month high on Friday, on track for its third straight weekly gain, aided by a break above key technical levels as the US Treasury’s buyback support plan dragged on the dollar.

Spot gold climbed 2.4 percent to $4,623.94 per ounce by 1:41 p.m. EDT (1741 GMT), earlier touching $4,631.99 — its highest since May 15. US gold futures settled 2.4 percent higher at $4,680.60.

Prices have gained over 5 percent so far this week, including their biggest one-day rise since early February registered on Wednesday.

The metal is also trading above all key moving averages, having broken above the closely watched 200-day moving average of around $4,513, a move technical analysts typically view as bullish.

“A big factor, of course, is technical... next step is $4,700 if this momentum continues, but also I think it’s been very much driven by a drop in the US dollar,” said Bart Melek, global head of commodity strategy at TD Securities.

The dollar languished near its lowest level since mid-May as investors questioned whether the US Treasury’s efforts to calm the bond markets might end up undermining confidence in the currency.

US Treasury Secretary Scott Bessent said on Thursday the government could expand Treasury buybacks further, a day after the department unveiled plans to double buybacks of longer-dated securities.

“Gold call option demand has risen sharply amid renewed demand for global macro-policy hedges, creating a mechanical price amplifier to both the upside and downside,” Goldman Sachs said in a note.

Goldman noted that weaker market conviction around US rate hikes following the Fed’s July pause and softer economic data have helped revive speculative interest in COMEX gold and demand for rate-sensitive gold ETFs, with rising and elevated call option demand likely amplifying the move.

On physical demand, the recent rally in prices deterred retail buyers in India, while demand in top consumer China held steady.

Poland’s central bank slowed gold buying to 7.8 tonnes in July, data showed on Friday.

The US imposed 50 percent tariffs on some Canadian goods on Saturday after the two longstanding allies failed to reach a trade deal, with each side accusing the other of derailing days of talks.

The tariffs that came into effect just after midnight (0400 GMT) on some $20 billion of Canadian goods - things like wooden ice hockey sticks that are rarely used anymore - are far from an economic game-changer for the largest US trading partner after Mexico.

That represents just over 5 percent of Canada’s exports to the US.

But the new tariffs mark an increase in tensions between President Donald Trump and Prime Minister Mark Carney, and will likely make broader talks to renew the US-Mexico-Canada free trade agreement more difficult. Carney said he had suspended trade negotiations and Canada would retaliate “dollar for dollar” on the new tariffs.

“I have decided to suspend trade negotiations with the US and have directed Canada’s negotiators to return to Ottawa,” Carney said in a statement.

“They (negotiators) have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute,” he said.

“However, last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal.”

Carney, the only person to ever run the central banks of two major economies, was elected last year on promises to stand up to Trump, and remains broadly popular. Polls show most Canadians oppose making any concessions to Trump.

Hours earlier, the two sides had seemed close to an agreement that sources said would have lowered tariffs on steel, aluminum and autos and potentially brought American alcohol back to Canadian liquor stores.

“Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week,” US Trade Representative Jamieson Greer said during a White House briefing.

“This is a missed opportunity for Canada to partner with the United States, which is the fastest-growing economy in the G7,” Greer said.

A senior Trump administration official said the US offer would have put Canada in the best tariff position of any major exporter to the US, but that Canada had sought additional concessions, especially on steel, aluminum, autos and softwood lumber.

No additional talks are scheduled as the US implements the new duties, the official said.

Trump last month threatened to impose a raft of duties on a range of Canadian imports including wine, furniture, dairy products, cement, clothing, fishing rods, hockey equipment.

The tariffs, which do not qualify for preferential treatment under the US-Mexico-Canada free-trade agreement, open up some already vulnerable sectors to potential severe damage that could lead to job losses and business closures, trade experts have said.

The decision by the US administration followed three days of talks in Washington between Canada’s minister for trade with the US, Dominic LeBlanc, and Greer.

The new duties add to existing US tariffs on steel, lumber and autos which have taken major hit in the last 18 months, although the malaise has been largely contained within these sectors.

For the first time in nearly a decade, India recently decided to allow imports of duty-free raw sugar until October in order to contain surging prices and ensure adequate availability in the domestic market.

The government argued that duty-free imports of sugar have been allowed as a "precautionary" measure to guard against a possible further rise in prices in view of the coming festival season, when demand would go up considerably.

Sugar prices in India, the world's largest consumer of the sweetener, increased in a month from Rs 48.18 per kg on 20 July to Rs 55.70 per kg on 20 August, the government acknowledged.

The government has rejected criticism that the increase in sugar prices is due to diversion of sugar for ethanol production.

In fact, the share of sugar diverted for ethanol has declined from around 12% in 2022-23 to around 9% in 2025-26. Moreover, nearly three-fourths of the ethanol produced in the country now comes from grains, particularly maize, said the Ministry of Consumer Affairs, Food & Public Distribution on Friday.

India normally produces around 320-340 lakh tonnes of sugar annually, against domestic consumption of around 280-290 lakh tonnes. When there is surplus production, excess stocks block the funds of sugar mills and can delay payments to sugarcane farmers, it pointed out.

Diversion of excess sugar towards ethanol has helped address this structural problem and improved the financial health of sugar mills, maintained the Ministry.

As on 20 August 2026, 97% of sugarcane dues for the 2025-26 sugar season had already been paid to farmers, it said, adding that the improved financial position of sugar mills had reduced their dependence on government subsidies.

While around Rs 14,600 crore of subsidy was provided to the sugar industry between 2014 and 2021, no such subsidy has been announced since 2021-22.

The Ministry said the increase in sugar prices was due to a combination of factors, including lower-than-expected domestic production, increased demand ahead of the festive season, weather-related damage to the sugarcane crop, tightening global sugar supplies and speculation and hoarding by some sections of the industry.

India's sugar production during the current season is expected to be around 306 lakh tonnes, compared with the initial estimate of around 343 lakh tonnes by key sugarcane-growing states, according to official figures.

Production has been affected by disease in sugarcane as well as waterlogging caused by excess rainfall.

But despite the lower-than-estimated production, adequate sugar stocks are available in the country to meet domestic demand until the new crushing season begins in October.

The government also points out that international sugar prices have risen sharply from $474 per tonne on 30 June to $552 per tonne on 20 August, an increase of over 16% in less than two months.

Speculation and hoarding by some sugar mills and traders have also contributed to the recent price increase. Several steps have therefore been taken, including the imposition of a stock limit of 400 tonnes on sugar dealers across the country from 1 August to 30 November.

States and sugar mills have been advised to begin crushing from 15 October, and this is expected to raise October sugar production from the usual 3 lakh tonnes to more than 10 lakh tonnes, the Ministry says.

The US imposed 50% tariffs on some Canadian goods on Saturday after the two longstanding allies failed to reach a trade deal, with each side accusing the other of derailing days of talks.

The tariffs that came into effect just after midnight (0400 GMT) on some $20 billion of Canadian goods - things like wooden ice hockey sticks that are rarely used anymore - are far from an economic game-changer for the largest US trading partner after Mexico. That represents just over 5% of Canada's exports to the US.

But the new tariffs mark an increase in tensions between President Donald Trump and Prime Minister Mark Carney, and will likely make broader talks to renew the US-Mexico-Canada free trade agreement more difficult.

Carney said he had suspended trade negotiations and Canada would retaliate "dollar for dollar" on the new tariffs.

"I have decided to suspend trade negotiations with the US and have directed Canada's negotiators to return to Ottawa," Carney said in a statement.

"They (negotiators) have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute," he said. "However, last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal."

Carney, the only person to ever run the central banks of two major economies, was elected last year on promises to stand up to Trump, and remains broadly popular. Polls show most Canadians oppose making any concessions to Trump.

Hours earlier, the two sides had seemed close to an agreement that sources said would have lowered tariffs on steel, aluminium and autos and potentially brought American alcohol back to Canadian liquor stores.

"Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week," US Trade Representative Jamieson Greer said during a White House briefing.

"This is a missed opportunity for Canada to partner with the United States, which is the fastest-growing economy in the G7," Greer said.

A senior Trump administration official said the US offer would have put Canada in the best tariff position of any major exporter to the US, but that Canada had sought additional concessions, especially on steel, aluminium, autos and softwood lumber.

No additional talks are scheduled as the US implements the new duties, the official said.

Trump last month threatened to impose a raft of duties on a range of Canadian imports including wine, furniture, dairy products, cement, clothing, fishing rods, hockey equipment.

The tariffs, which do not qualify for preferential treatment under the US-Mexico-Canada free-trade agreement, open up some already vulnerable sectors to potential severe damage that could lead to job losses and business closures, trade experts have said.

The decision by the US administration followed three days of talks in Washington between Canada's minister for trade with the US, Dominic LeBlanc, and Greer.

The new duties add to existing US tariffs on steel, lumber and autos which have taken a major hit in the last 18 months, although the malaise has been largely contained within these sectors.

Runner Automobiles PLC is moving ahead with its partnership with Chinese electric vehicle giant BYD Auto Industry Co, approving a series of measures to launch the import and distribution of BYD vehicles in Bangladesh.

At a board meeting on 20 August, the company approved the next course of action under its Master Supply and Manufacturing Agreement (MSMA) with BYD, according to a price-sensitive statement.

Under the agreement, Runner will sign a Technical Licence Agreement (TLA) with BYD and import and distribute BYD vehicles in completely built-up (CBU) condition.

The company said the initiative is aimed at establishing the necessary distribution network and preparing for the proposed project.

As part of the plan, Runner also intends to raise Tk250 crore through the issuance of preference shares, subject to regulatory and shareholder approvals.

The board's decision marks a significant step in Runner's expansion beyond its traditional motorcycle business into the passenger vehicle segment, particularly amid growing demand for electric and technologically advanced vehicles in Bangladesh.

BYD is one of China's leading clean energy firms, known for EVs, batteries, and renewable solutions. Founded in 1994, it has grown into a global EV powerhouse, competing with companies like Tesla. BYD produces cars, buses, and trucks, while also manufacturing advanced lithium batteries.

The company is expanding rapidly across Asia, Europe, and Latin America, playing a key role in the global transition to sustainable transportation.

Industry insiders say Runner has been preparing for such a venture. In May 2025, the company acquired land in Sreepur, Magura, and near its existing facility in Bhaluka, Mymensingh, with plans to establish a vehicle manufacturing plant in collaboration with a foreign partner.

Runner already has experience in automotive production, having invested around Tk300 crore to manufacture Bajaj three-wheelers. It also markets a range of international brands, including Eicher trucks and buses, KTM motorcycles, and Vespa scooters, alongside its own two-wheeler line-up.

Tk250cr preference shares

To support its expansion plans, Runner Automobiles has also approved the issuance of Tk250 crore of cumulative, non-participating preference shares with a 50% convertibility option. The preference share issue remains subject to approval from the relevant regulatory authorities and shareholders.

The board has also approved a proposal to double the company's authorised share capital to Tk400 crore from Tk200 crore.

The increase in authorised capital will allow the company greater flexibility to raise additional equity capital in the future as it expands its business.

Both proposals will be placed before shareholders at an Extraordinary General Meeting (EGM), scheduled for 8 October 2026 at 11:30am through a digital platform. The record date for the meeting is 13 September.

The increase in authorised capital requires approval from the EGM, Bangladesh Securities and Exchange Commission, Registrar of Joint Stock Companies and Firms and other relevant authorities. Runner did not disclose the investment required for the BYD project or provide details of the proposed terms of the preference shares.

Building BYD distribution network

Under the approved plan, Runner will import BYD vehicles as CBU units while establishing the required distribution and support network. The company is also preparing for the project through the technical licensing arrangement with BYD.

Industry observers see the partnership as an important development for Bangladesh's emerging electric vehicle market, where infrastructure, product availability and after-sales services remain key challenges.

Runner Automobiles is listed on the Dhaka Stock Exchange in 2019 and has traditionally focused on motorcycles and automotive products. The BYD partnership could diversify its revenue base and strengthen its position in the country's evolving automobile market.

Furthermore, Runner reported an 18% surge in consolidated revenue, reaching Tk878 crore for the July-March period of FY26. The company returned to profitability with a consolidated net profit of Tk13.70 crore and earnings per share (EPS) of Tk0.50, rebounding from a loss in the corresponding period of the previous year. Previously, for FY25, Runner disbursed a 10% cash dividend to its shareholders after posting a net profit of Tk10.23 crore.

Meghna Group of Industries (MGI), one of the country’s largest industrial conglomerates, has entered the sanitaryware market, seeking to tap growing demand amid increased construction activity.

The group, which has been manufacturing construction materials, namely cement, for more than two decades, expanded into sanitary products five years after launching its ceramic products business in 2021 as part of its efforts to diversify its product portfolio.

“We want to offer customers a complete range of construction material solutions to meet their needs. That’s why, alongside tiles, sanitaryware is part of our portfolio expansion,” MGI Chairman Mostafa Kamal told The Daily Star recently.

The conglomerate, which also operates in the consumer goods and energy sectors, said it has invested around Tk 300 crore in its sanitary products business. Its factory has a production capacity of around 60,000 pieces a month and employs more than 600 people.

MGI mainly manufactures basins and commodes, which together account for nearly 80 percent of the sanitaryware market, valued at around Tk 2,000 crore. The market is growing by roughly 8 to 10 percent annually, according to industry operators.

Located in Ashariar Char in Narayanganj, the factory currently has the capacity to produce 2,000 washbasins and commodes a day.

The group said it uses 100 percent imported raw materials, sourced from selected countries, to maintain international product standards. The materials are currently imported from Thailand, Malaysia, Egypt, India, Germany and China.

According to fiscal 2024-25 data from the Bangladesh Ceramic Manufacturers and Exporters Association, domestic products account for about 65 percent of the sanitaryware market, while imported products make up the remaining 35 percent.

“Customers today are placing greater importance on quality and reliability, alongside product variety. To meet this demand, we are giving special emphasis to the sanitaryware sector,” said Tanjima Mostafa, a director of MGI.

“Through a combination of quality ceramic products, modern designs, and operational efficiency, we want to strengthen our position in this sector by delivering Fresh Sanitaryware to our customers,” she said.

Founded in 1976, MGI operates more than 57 industrial units and employs over 65,000 people, according to a press release.

Global apparel buyers are largely maintaining their orders from Bangladesh despite being concerned whether suppliers can meet deadlines amid the country's prolonged gas crisis.

For now, the orders are holding – but at a growing cost for manufacturers.

Representatives of four leading international buyers told TBS that their companies had no plans to reduce orders, while one said its orders had rather increased slightly in recent weeks.

The buyers said none of their suppliers had delayed shipments, despite factories struggling with the gas shortage and relying on costly alternative fuels to keep production running.

Moyeen Chowdhury, head of the Dhaka office of sportswear brand Puma, said exporters were struggling with rising costs but continuing to meet their commitments.
"We have no plans to reduce orders," he told TBS.

TBS also spoke to six exporters, and except for one, none reported a decline in export orders. However, a textile mill said it was limiting the orders it accepted despite having buyers because it could not ensure adequate production amid the gas shortage.

Bangladesh has been grappling with a gas shortage for the past two years. The crisis intensified following disruptions to global fuel supply chains after the outbreak of conflict in the Middle East and worsened further in July when a floating LNG terminal broke down.

The gas crisis has disrupted production across major industrial belts, forcing some factories to suspend operations and others to rely on expensive alternative fuels. Manufacturers are incurring heavy losses, while concerns are growing over possible worker layoffs.

Against this backdrop, members of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) are scheduled to meet today to determine their next course of action.

Bangladesh, the world's second-largest apparel exporter, shipped $38.7 billion worth of garments in FY26, while total textile exports approached $40 billion.
The textile sector, which forms the backbone of the apparel industry, is heavily dependent on gas. Textile mills use gas to generate captive power and operate boilers to produce yarn and fabric for garment manufacturers.

The government had assured industries that the gas situation would improve by 14 August. But industrialists said there had been no significant improvement as of 20 August.

Buyers remain committed
The head of the Dhaka office of a leading US-based buyer told TBS on condition of anonymity that the company had no plans to reduce orders from Bangladesh.
The brand imports more than $1 billion worth of apparel from Bangladesh annually and has more than 100 local suppliers.
"Almost all of them are delivering on time, although we can see that they are struggling," the representative said. "Factories are having to buy diesel to keep production running, pushing up their costs, but they are still meeting delivery commitments," he said.
The buyer's suppliers include all of Bangladesh's top 10 exporters, including Jaber & Zubair and Square, and none had so far missed delivery deadlines, he added.
A senior official of another European buyer said its suppliers were also continuing to deliver on time. "We have no plans to reduce orders. In fact, our orders have increased slightly in the past two weeks."

The managing director of a leading Bangladeshi exporter with annual exports of more than $600 million said none of its buyers had indicated plans to cut orders. "However, they are regularly checking on the situation. They are concerned and frustrated."
Shovon Islam, managing director of Sparrow Group, which exports around $350 million a year, said they were using diesel to keep factories running but had not missed any shipments.

"None of our buyers has told us they will reduce orders," he said, adding that diesel use was increasing the company's costs by around Tk3 crore a month.

One exporter reports order cut
BKMEA President Mohammad Hatem, who is also MD of MB Knit Fashions, said one of his European buyers had reduced its order by one-third from its original commitment.
"Because of the gas crisis, they don't want to take the risk," he said.

Azhar Khan, chairman of textile mill Methela Group, said gas pressure at his factory was currently just 0-1 PSI against the required level of more than 10 PSI.
"We're using alternatives to keep production running, but even then we can't operate at more than 60% of capacity. Buyers want to place orders, but we are unable to accept them," he told TBS.

Factories turn to costly alternatives
Exporters said many are increasingly turning to solar power, rice husk, diesel, batteries and even wood to keep production running.

"We are using rice husk to run our boilers," said Inamul Hoque Khan Bablu, managing director of Ananta Garments.

Azhar Khan said his company was also using rice husk and diesel to maintain production.

Some weaving mills in Narsingdi have resorted to burning wood, while others are using rice husk to run their boilers, Bablu said.

Many factories are also relying on diesel, which costs three to four times more than gas, significantly raising production costs.

BKMEA to decide next steps
BKMEA members will meet today to discuss the ongoing gas crisis and decide what steps industrialists should take, Hatem said.

"We have arranged the meeting to determine what industrialists should do in the face of the ongoing gas shortage," he said. "We will make a decision after the meeting. We may hold a press conference on Sunday to announce our position," Hatem added.