The Confederation of Indian Industry (CII) has proposed forming two joint business task forces on digital transformation and infrastructure investment and financing to strengthen trade and investment ties between Bangladesh and India.

Indian businesses and investors have also stressed the need to make cargo handling at land ports, including Benapole, faster and more efficient.

Commerce Minister Khandaker Abdul Muktadir shared the details with reporters after a meeting with a visiting CII delegation at the commerce ministry in Dhaka today (18 August), according to a press release.

The delegation included leaders of India's leading business body and representatives of several prominent companies, some of which already have investments in Bangladesh.

Muktadir said Indian companies operating in Bangladesh had raised concerns over difficulties in transporting raw materials and goods through land ports.

Improving cargo handling efficiency at Benapole specifically and easing cross-border movement of goods would reduce transportation and raw material costs and boost bilateral trade, he said.

The Indian business representatives proposed two business-to-business task forces involving entrepreneurs from both countries.

One task force would focus on sharing India's experience and cooperation in digital transformation, while the other would explore ways to increase Indian investment and financing in Bangladesh's infrastructure sector.

The proposal is also expected to be discussed with the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).

Welcoming the initiative, the commerce minister said Bangladesh would require major infrastructure investment to become a trillion-dollar economy, including in railways, highways, ports, and LNG infrastructure.

He said Indian investment in these sectors would be viewed positively if it proved beneficial for Bangladesh.

Muktadir said political and commercial relations could not be viewed entirely separately, but greater trade, investment, and business engagement would benefit both countries.

Citing the European Union and other regional trade blocs, he said regional cooperation was important for economic progress.

The country's macroeconomic stability has improved during the first six months of the current government.

The decline in foreign exchange reserves has been halted, while exports and remittances have increased.

According to the IMF's methodology, forex reserves have remained stable at around $20-22 billion.

Higher export earnings and remittance inflows have helped generate a current account surplus. Some stability has also returned to the banking sector.

However, there has been no meaningful reform at the micro level of business and trade. Businesses say they have seen little improvement in their day-to-day operations.

From land mutation and dealings with deputy commissioners' offices to the clearance of imported goods, corruption and extortion persist at every stage.

Concerns over inflation, investment and employment also persist. High prices of essentials remain a major concern for ordinary people, employment has not improved, and concerns over the investment climate have intensified.

Problems also persist in clearing imports. Although goods are supposed to be cleared within a day, the process often takes a month or even a month and a half.

The government itself faces financial constraints and cannot meet its expenditure from revenue earnings, forcing it to borrow more from the financial sector.

Political parties should understand the state of the economy and the country's investment climate. Many IMF recommendations have been adopted, but implementation remains inadequate.

Macroeconomic stability has returned but without micro-level reforms, these gains will not be sustainable. Reducing bureaucratic hurdles, eliminating corruption and adopting business-friendly policies are essential.

It would be unfair to judge the government solely by economic outcomes, as policy measures take time to produce results. But outcomes cannot be ignored either.

Government data on inflation, GDP growth, exports, investment, private-sector credit growth and ADP implementation show little improvement from the previous situation.

The BBS has not published employment data since 2024, but there is little evidence that job creation has improved. ADP implementation has declined over the past six months, private-sector credit growth has slowed and non-performing loans have increased.

The government cannot be held responsible for all these developments. It has taken some measures, but they have yet to produce better outcomes.

However, the government can be held directly responsible for high inflation. How much has it done to control inflation, including measures promised in its election manifesto? What steps has it taken to strengthen institutions?

Monetary policy has shifted from contractionary to expansionary. Quantitatively expansionary measures were introduced even before interest rates were cut.

Non-performing institutions have again been given access to loans, while a Tk60,000 crore stimulus package has been introduced and interest rates reduced.

If these measures had followed successful efforts to contain inflation, it would have been clear that the economy was ready to shift its focus to growth.

The government could also have given Bangladesh Bank greater autonomy, but did not. The latest appointment of the governor instead highlighted how its autonomy has been undermined. As a result, many government decisions have not been forward-looking.

The government has presented a large budget with commitments to structural reforms, but implementation remains limited. Apart from introducing e-invoicing for VAT administration, few effective measures have been taken.

The budget also includes several deregulation commitments. The government is merging the PPP Authority with Bida, but this is hardly a major reform. Making the one-stop services of Bida, Beza, Bepza, the PPP Authority and the Hi-Tech Park Authority fully functional is more important. Operationalising the National Single Window is also crucial.

A cabinet task force has been formed to implement deregulation. However, some budget commitments will require amendments to existing laws.
The government has made some positive moves on trade. Signing a Cepa with South Korea is one of its notable achievements. Once ratified, it could help improve Bangladesh's poor record on free trade agreements.

Bangladesh has also made progress in its trade ties with China. The government also deserves credit for resisting pressure to scrap the trade agreement with the US. If it was withdrawn unilaterally, garment exports could have come under significant pressure.

Overall, the past six months have brought little economic relief to people's lives. The government has introduced and expanded some social protection programmes, but their impact remains limited and marginal at the macroeconomic level.

Bangladesh Bank (BB) has instructed all scheduled banks to facilitate bank account opening for foreign nationals with valid and up-to-date work permits from the Bangladesh Investment Development Authority (BIDA).

In a circular issued yesterday, the central bank said foreign employees, particularly those working under the A3 visa category, must receive their salaries and allowances through local bank accounts.

The A3 visa is issued to specialists, consultants and workers employed on projects under bilateral or multilateral agreements.

According to BIDA’s annual report, the agency issued 5,491 new work permits and approved 10,407 extensions in FY 2024-25

Foreign nationals working in Bangladesh under other employment visa categories are also required to receive their salaries through bank accounts, BB said.

Banks have been instructed to process account-opening applications under their Know Your Customer (KYC) procedures, provided the applicants have valid and up-to-date work permits.

According to BIDA’s annual report, the agency issued 5,491 new work permits and approved 10,407 extensions in fiscal year 2024-25. In the previous fiscal year, it issued 5,761 new permits and approved 9,947 extensions.

Bangladesh will strengthen research, technology and knowledge-sharing cooperation with China to modernise the traditional silk industry to increase productivity and sustainability, Md Shariful Alam, state minister for textiles and jute, said yesterday.

He made the remarks while speaking as the chief guest at a conference on sericulture research and development in the context of strategic cooperation between China and Bangladesh, held in Rajshahi.

The state minister said the government had taken initiatives to reopen state-owned closed industries in line with its election manifesto.

Alongside reopening the factories, the government plans to expand markets and attract both domestic and foreign investment, Shariful said.

Organised by the China-Bangladesh Silk Research Centre (CBSRC), with support from the Bangladesh Sericulture Development Board, the conference was a joint initiative of the board and China’s Zhejiang Sci-Tech University.

The minister said the government aims to modernise the entire silk value chain, from mulberry cultivation, silkworm rearing and cocoon production to silk yarn manufacturing, weaving, product development, branding and marketing.

“Research and technological cooperation are extremely important to achieve this goal,” he said, adding that China’s experience in silk research, technological innovation and industrial development could play an important role in advancing Bangladesh’s silk sector.

Bangladesh would strengthen cooperation between Chinese research institutions and universities, the Bangladesh Sericulture Development Board, and other relevant research organisations.

The cooperation could cover the development of high-yielding and climate-resilient mulberry varieties, improved silkworm breeds, disease and pest management, modern silk yarn production, quality testing and value-added silk products, he said.

Shariful also said the government plans to establish stronger links among researchers, farmers, entrepreneurs and industrial establishments so that research findings can be applied at the field level and translated into commercial opportunities.

“Modern technology, skills development and investment” would also be used to strengthen the industry.

Highlighting Rajshahi’s historical importance in the sector, the minister said the city was known as the “Silk City” and that the industry could contribute significantly to rural employment, higher farm incomes, women’s empowerment and overall economic development.

He said Rajshahi Silk had already received geographical indication (GI) recognition and that initiatives would be taken to further strengthen its quality, product diversity, branding and position in international markets.

He stressed the need to make the silk industry more environmentally sustainable while improving productivity and competitiveness. Abu Sayeed Chand, a member of parliament from the Rajshahi-3 constituency; Sharaf Uddin Ahmed Chowdhury, secretary to the textiles and jute ministry; Md Toufiq Al Mahmud, director general of the Bangladesh Sericulture Development Board; and Prof Nusrat Jahan Nipa, chief coordinator of CBSRC, along with academics, researchers, businessmen and senior ministry officials, also attended the conference.

Commerce Minister Khandaker Abdul Muktadir today (18 August) said that he is not satisfied with the current cost of living and commodity prices, stressing that reducing prices requires improvements beyond market monitoring.

Responding to a question about the market situation six months after taking office, he said energy and electricity prices, lending rates, productivity, transport, and infrastructure all influence commodity prices.

He said that Bangladesh's logistics costs account for around 16% of GDP, compared with an international average of about 10%. "As a result, additional costs are incurred in transporting goods from production centres to retail markets, with the burden ultimately falling on consumers."

Improved transport connectivity, uninterrupted and affordable energy, and a more efficient supply chain could create opportunities to reduce prices, the minister said while talking to reporters after a meeting with a visiting Confederation of Indian Industry (CII) delegation at the ministry in Dhaka, according to a press release.

He urged people not to expect immediate results, saying developing the necessary infrastructure and energy capacity takes time.

The government is working to ensure new LNG infrastructure, gas supplies, and uninterrupted operations at power plants, Muktadir said.

On seasonal price hikes of green chillies, onions and vegetables, the minister said supply shortages emerge during certain periods of the year despite increased domestic production.

To reduce these seasonal gaps, the Agriculture Ministry is taking initiatives to expand planned production, including contract farming, he added.

Muktadir said simultaneous improvements in energy, infrastructure, production, and supply systems would help stabilise the market and gradually reduce the cost of living.

Shares of listed general insurer Sena Insurance PLC have surged nearly 161% in just four and a half months, despite the company saying it has no undisclosed price-sensitive information (PSI) behind the unusual rise.

In response to a query from the Dhaka Stock Exchange (DSE) regarding the unusual increase in its share price and trading volume, the company yesterday said that it had no undisclosed price-sensitive information that could explain the recent movement.

According to DSE data, Sena Insurance shares closed at Tk60 on 24 March. The price rose to Tk156.50 at the close of trading yesterday, representing a gain of Tk96.50, or around 161%, over the period.

Meanwhile, the company's revenue increased in the first half of 2026, although its net profit declined slightly year-on-year.

Sena Insurance posted revenue of Tk18.82 crore during January-June 2026, compared with Tk17.32 crore in the same period a year earlier. This represents an increase of Tk1.50 crore, or around 8.7%.

However, the insurer's net profit fell to Tk19.81 crore in the first six months of 2026 from Tk20.27 crore a year earlier. This means profit declined by Tk46 lakh, or around 2.3%, year-on-year.

The company reported earnings per share (EPS) of Tk3.39 for the January-June period. Its net asset value (NAV) per share stood at Tk30.43 as of 30 June 2026.

For the year ended 31 December 2025, the company's board recommended a 15% cash dividend. Sena Insurance reported EPS of Tk5.17 for 2025, up from Tk4.29 in 2024.

The insurer is majority-owned by Sena Kalyan Sangstha, which holds 60% of its shares. As of June 2026, foreign investors held 9.71% of the company's shares, while general investors held 30.29%.

According to company information, Sena Insurance started operations in late 2013 and was listed on the stock exchanges in 2021. Besides conventional general insurance, the company has plans to expand insurance services in areas including agriculture and livestock.

Despite the company's clarification that it has no undisclosed PSI, its share price has risen sharply compared with its underlying asset value.

At Tk156.50, Sena Insurance's closing price yesterday was more than five times its net asset value (NAV) per share of Tk30.43 as of June. The wide gap between the market price and book value has drawn attention to the stock's valuation, even as the company denies having any undisclosed price-sensitive information behind the recent surge.

CAPM BDBL Mutual Fund 01, a closed-end mutual fund, reported a net profit of Tk6.77 crore for the fiscal year ended 30 June 2026 but decided not to declare any dividend for the year.

The decision was finalised during a trustee board meeting held yesterday, according to a regulatory filing with the stock exchange.

The fund reported an earnings per unit (EPU) of Tk1.35 for the 2025-26 fiscal year.

According to the audited financial statements, the fund's total Net Asset Value (NAV) stood at Tk55 crore on a cost-price basis and Tk45.19 crore on a market-price basis as of 30 June 2026. Consequently, the NAV per unit at cost price was Tk10.97, while the NAV at market price stood at Tk9.01, against the face value of Tk10 per unit.

The fund has set 9 September as the record date for its annual closing.

The decision to skip the dividend comes at a time when the fund is approaching a structural transition. Earlier, the trustee called a Special General Meeting (SGM) of its unitholders to determine the future of the scheme.

The meeting, scheduled for 7 October, will allow unitholders to vote on whether to convert the scheme from a closed-end to an open-end mutual fund or proceed with its formal redemption.

The record date for determining unitholder eligibility to attend and vote at the SGM has been set for 15 September.

Closed-end mutual funds in Bangladesh have recently come under regulatory focus, with the Bangladesh Securities and Exchange Commission (BSEC) encouraging funds trading at significant discounts to their NAV to consider conversion or liquidation to protect investor interests.

CAPM BDBL Mutual Fund 01 is managed by CAPM Company Limited, while the Investment Corporation of Bangladesh (ICB) serves as its trustee and custodian.

Eight listed closed-end mutual funds did not declare any dividends for their unitholders for the year ended June 30, 2026, despite the Dhaka Stock Exchange’s main index rising 18 percent during the fiscal year.

Closed-end mutual funds collect a fixed amount of money from investors, usually for a 10-year period, and invest the money in shares, bonds and other assets. When the funds make profits, they distribute part of the earnings among unitholders, while fund managers receive management fees. The units are listed and traded on the stock exchange.

The eight funds are ICB AMCL Sonali Bank Limited 1st Mutual Fund, SEML FBLSL Growth Fund, Prime Bank 1st ICB AMCL Mutual Fund, ICB AMCL Third NRB Mutual Fund, ICB AMCL Second Mutual Fund, IFIL Islamic Mutual Fund-1, ICB Employees Provident MF 1: Scheme 1 and Phoenix Finance 1st Mutual Fund.

Strategic Equity Management Limited manages one of the funds, while ICB Asset Management manages the other seven.

In contrast, Reliance One, the first scheme of Reliance Insurance Mutual Fund, declared a 10 percent cash dividend for its unitholders. ICB AMCL First Agrani Bank Mutual Fund declared a 4 percent dividend.

AIMS Bangladesh manages Reliance One, while ICB Asset Management manages the ICB AMCL First Agrani Bank Mutual Fund.

During the last fiscal year, the DSEX, the benchmark index of the Dhaka Stock Exchange, rose sharply from 4,865 points to 5,762 points.

ICB Chairman Abu Ahmed said the funds were formed when the stock market was at a very high level. The market later fell sharply, reducing the value of their investments.

He said the funds did not sell their shares when prices were falling, resulting in substantial losses.

“Although the market has recovered over the past year, the funds have not fully recovered their losses,” he said.

He said the funds also have to set aside provisions for their previous losses even when they make profits now. This has prevented them from paying dividends.

“To be honest, the funds were not managed very well at that time. If they had sold the shares when prices started falling, the losses would have been much lower,” Abu Ahmed said.

He said ICB had asked the Bangladesh Securities and Exchange Commission (BSEC) for a one-year waiver from the provisioning requirements under IFRS 9.

“Even a partial waiver would have allowed the funds to pay dividends, as they have made profits over the past year,” he said.

The broad index of the Dhaka Stock Exchange (DSE) witnessed a dramatic reversal today (18 August), as early-session euphoria over the finalisation of new margin lending rules quickly faded, giving way to a massive wave of profit-taking.

The benchmark DSEX, which had risen more than 50 points in the first half of the day, plunged 100 points from its intraday peak to close at 5,773, down 40 points from the previous session.

This volatile performance extended the market's losing streak to a fifth consecutive session, with the DSEX shedding a cumulative 130 points over the period. The blue-chip DS30 index also mirrored the downturn, slipping 11 points to settle at 2,164.

The broad-based sell-off resulted in an erosion of Tk5,800 crore from the bourse's market capitalisation in a single day, although trading activity remained relatively strong, with turnover reaching Tk998 crore.

The bearish trend was mirrored at the Chittagong Stock Exchange (CSE), where the broad CASPI index plummeted by 110 points to finish at 15,513. Turnover at the port city bourse also saw a 30% decline, settling at Tk73 crore.

'Sell on news'

Market insiders attributed the afternoon crash to a classic "sell on news" reaction.

For weeks, the market had been buoyed by anticipation that the Bangladesh Securities and Exchange Commission would relax margin lending rules. When the gazette notification was finally published today, confirming the expected easing, investors who had gained from the recent rally moved aggressively to liquidate their positions.

Ashequr Rahman, managing director of Midway Securities, told The Business Standard that the publication of the gazette has effectively removed the prevailing uncertainty.

"There was a cloud of doubt regarding when the margin rules would be official. Now that it is out, the uncertainty has cleared. However, the market had already moved in anticipation of this news over the past few months. Since the changes were exactly as expected, there was no fresh trigger to push the index higher," he explained.

Ashequr further noted that the DSEX had gained nearly 800 points over the past year, particularly following the national elections.

"The market remained resilient despite severe pressures such as energy shortages, inflationary spikes, and geopolitical tensions in the Middle East.

"What we are seeing now is a natural correction as investors book profits on stocks that saw significant price appreciation during that period. Once this pressure subsides, the market is likely to find a new floor," he added.

Intraday volatility, panic selling

Sheltech Brokerage Limited, in its daily market review, said persistent selling pressure dictated the day's performance, with early buying interest quickly giving way to broad-based selling.

While the index touched an intraday high of 5,872.41 points in the morning, the momentum shifted around mid-session as cautious sentiment turned into active selling.

EBL Securities echoed these views, stating that the "ailing momentum" of the capital bourse failed to reverse despite the morning optimism.

The firm noted that rumors regarding potential additional stringent measures – despite the gazette's easing – induced further caution, triggering a wave of panic selling in the latter half of the day.

Sectoral and stock performance

Market breadth was overwhelmingly bearish, with 266 issues declining compared to only 77 that advanced, while 47 remained unchanged.

The textile sector led the turnover chart, accounting for 20.9% of the day's volume, followed by general insurance at 13.9% and engineering at 12.1%.

Sectoral returns were almost entirely negative. General insurance recorded the steepest correction, falling 3.4%, followed by cement and paper.

The services sector was a rare exception, gaining 0.8%.

Heavyweight and large-cap stocks including BRAC Bank, Sharp Industries, Islami Bank, British American Tobacco (BAT) Bangladesh and Grameenphone were among the major drags on the index.

On the gainers' list, Tung Hai Knitting and Envoy Textile managed to hit the upper circuit, while Sharp Industries, Peoples Leasing, and Premier Leasing featured among the top losers.

Despite the sharp intraday drop, analysts pointed to the healthy turnover as a silver lining.

"The fact that turnover remains near the Tk1,000 crore mark even during a decline suggests that investors are not exiting the market entirely; they are simply reshuffling their portfolios, which is a sign of underlying market liquidity," a senior analyst remarked.

Shares of listed companies in the ‘A’ and ‘B’ categories with price-to-earnings (P/E) ratio up to 40 will qualify for margin loans, while the revised rules also eased the thresholds for margin calls and forced sales.

The Bangladesh Securities and Exchange Commission (BSEC) has issued a gazette on the revised margin rules, 2025, allowing intermediaries to expand their lending but with stronger regulatory oversight.

The final rules came after extensive discussions over changes to the earlier framework, particularly on the criteria for determining securities eligible for margin financing.

Market operators said the revised framework would help increase liquidity in the secondary market by widening access to margin financing while maintaining safeguards against excessive risk-taking.

The final rules dropped the proposed price-to-book (P/B) ratio as an eligibility criterion for banks, non-bank financial institutions (NBFIs) and general insurers and instead retained the P/E-based test for deciding eligibility, except for life insurers.

The draft rules had proposed a maximum P/B ratio of 3 for banks and 1 for insurance companies, arguing that asset-based businesses are better assessed through book value as their earnings fluctuate due to provisioning and interest-rate movements.

For life insurers, however, the maximum allowable P/B ratio has been raised to 3 from the proposed 1. The ratio will be calculated using the latest closing price divided by audited net asset value per share.

The final rules raised the P/E ceiling to 40 from the proposed 30 for ‘A’ and ‘B’ category shares. Stocks with a P/E above 40 will therefore not qualify for margin loans. The P/E ratio will be calculated based on EPS reported in the financial statements for the latest four quarters.

Securities under the G (Greenfield), N (Newly Listed) and Z categories, as well as securities traded on the SME board, Alternative Trading Board (ATB) and Over-the-Counter (OTC) platforms, will remain outside the margin-lending facility because of their relatively higher risk and lower liquidity.

Akramul Alam, head of research at Royal Capital, said the revised framework sought to strike a balance between facilitating leveraged investment and containing the risks associated with it.

“Lenders and investors will enjoy greater flexibility as the final rules raised the P/E ratio threshold from 30 to 40,” he said.

The retention of the P/E-based test for most securities, while introducing the P/B test only for life insurers, indicates that the commission ultimately opted for a targeted approach rather than applying the proposed valuation measure broadly across banks, NBFIs and insurance companies, he said.

Margin ratio remains 1:1

The maximum margin financing ratio remains unchanged at 1:1, meaning a merchant bank or stockbroker cannot provide loans exceeding the amount of equity maintained by an investor.

An investor with Tk 1 million in equity, for example, can receive up to Tk 1 million in margin financing.

The one-year margin agreement will be automatically renewed unless either party terminates it.

“The automatic renewal provision will help reduce administrative and other related costs,” said Mr Alam.

Minimum investment cut

The final rules have reduced the minimum investment required to qualify for margin lending to Tk 300,000 from Tk 500,000.

An investor must therefore have at least Tk 300,000 invested in the secondary market to obtain margin financing.

The lower threshold is expected to broaden access to such loans while keeping very small investors outside the leveraged market.

Margin calls eased

The rules have significantly eased the thresholds for margin calls and forced sales. If a client’s equity falls below 50 per cent of the margin financing, compared with the proposed 70 per cent, the lender will ask the client to deposit the required amount.

If the client fails to meet the margin call within three working days, the lender can sell part of the securities to restore the client’s equity to 50 per cent of the margin financing.

The threshold for forced sales has also been reduced to 25 per cent from the proposed 50 per cent. Once the client’s equity falls below this level, the lender can sell the required securities without prior notice to adjust the margin position.

The rules also protect lenders against losses caused by execution delays. A lender will not be held liable for losses if a mandatory sell order is not executed immediately or is delayed after being placed.

Lenders’ exposure capped

A merchant bank or stockbroker can finance up to four times its actual capital, down from the proposed five times. This provision is intended to prevent lenders from taking excessive leverage while providing margin loans.

The rules also cap exposure to a single security at 20 per cent of a financier’s total outstanding margin portfolio, unchanged from the proposed limit. The measures are aimed at preventing excessive leverage by financing institutions and concentration of exposure to individual securities.

Governance tightened

Every margin financier will have to maintain a dedicated bank account exclusively for the financing activities. Existing branch-based or digital booth-based accounts must be closed by February 2027 unless specifically approved by the commission.

Each margin financier must also establish a risk management committee comprising at least two members. The committee will have to meet at least four times a year, with its proceedings submitted to the board of directors.

China’s retail sales and factory activity grew at a slower pace in July, official data showed on Monday, missing forecasts and highlighting persistent pressure on the world’s second-largest economy.

The country’s leaders have battled sluggish spending in the domestic economy since the end of the Covid-19 pandemic as it threatens overall growth, even as exports and certain high-tech sectors boom.

Beijing is targeting national growth of 4.5-5.0 percent this year, the lowest official goal in decades, but the economy fell short of that in the second quarter.

Data released Monday by the National Bureau of Statistics showed retail sales grew 0.6 percent in July, well below the 1.5 percent forecast in a Bloomberg survey and down from the one percent increase seen in June.

The NBS figures also showed industrial production growth slowed to 4.5 percent on-year in July -- down from 5.3 percent the month before and short of the five percent forecast in the Bloomberg survey.

“In July, international geopolitical conflicts persisted and the global energy market was characterised by significant instability and uncertainty,” said NBS spokesman Fu Linghui at a news conference Monday.

Also noting the impact of severe weather last month in some Chinese regions, Fu said authorities had “actively addressed internal and external risks and challenges”.

In another sign of the challenges facing the government, fixed-asset investment in January-July fell 6.7 percent on year, the NBS said.

“The weak economic data indicate that the economy faces further downside risks that require more effective policy response,” wrote Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management.

“The Politburo meeting in late July promised stronger fiscal spending but the implementation and transmission likely takes time,” said Zhang.

Many economists contend that China must shift towards a growth model driven more by household spending than the traditional engines of past decades, including real estate and infrastructure investment.

Trade data for July released this month showed exports and imports soaring, boosted by increased overseas demand for AI-related tech products.

The surge in exports has helped China’s vast manufacturing sector through the prolonged slump in domestic spending.

Shipping through the Strait of Hormuz slowed over the weekend, data showed on Monday, following attacks on tankers, while US-Iran talks to resolve the Middle East conflict stalled.

Five commodity vessels transited the strait on Saturday, with none registered for Sunday, shiptracking data from Kpler showed, versus 31 in the prior weekend.

Ships entering the strait on Saturday included an empty Very Large Crude Carrier with its Automatic Identification System switched off and an Indian-flagged Very Large Gas Carrier that used the Iranian route, Kpler data showed. A small tanker laden with Iranian fuel oil exited, it showed.

Shipping appeared to grind to a near standstill after the United Arab Emirates said three vessels operated by the Abu Dhabi National Oil Company were attacked in transit last week. The United States said it could maintain a naval blockade of Iran indefinitely.

Some ships may pass through undetected with transponders off, but the figures are far from the more than 130 ships a day that traversed the Strait of Hormuz before the war launched by the US and Israel on Iran in February.

Washington must meet Iran’s conditions regarding the strait in order for shipping to resume, Foreign Minister Abbas Araqchi said in an interview with local media on Saturday. The waterway handled a fifth of the world’s shipments of crude oil and liquefied natural gas before the war.

At the Bab el-Mandeb strait, where Yemeni Houthis declared a naval blockade on Saudi Arabia on July 20, Kpler data showed 49 weekend transits by commodity vessels, down from 55 in the prior week. There were no tracked Saudi oil shipments.

Nvidia will invest $1.5 billion in SoftBank-backed SB Energy and secure up to 8 ​gigawatts of AI computing capacity at an ‌Ohio campus being built by the data centre developer for OpenAI.

The deal is the latest where Nvidia is financing ​the ecosystem consuming its chips, a strategy ​that has helped fuel demand but also drawn scrutiny over the circular flows of ​funds from the chipmaker to its biggest customers.

Leading ​tech firms are increasingly tying together chips, power and data centre development as they race to secure the infrastructure ​needed for increasingly power-hungry AI models.

Chip giant Nvidia ​has secured land and power at Ohio’s PORTS-Pike Technology Campus ‌for an AI data centre that will use its graphics processors and networking gear, with an initial capacity of 4.25 GW.

SB Energy and SoftBank plan ​to build ​at least 10 GW of new power generation and invest $4.2 billion in Ohio ​grid infrastructure to support AI data centres.

Also ​backed by OpenAI, SB Energy develops large-scale power and data centre infrastructure projects. Founded in 2019, the company ​is building several data centre ​campuses to support rising demand tied to AI workloads.

China managed to add a small volume of crude oil to inventories in July, as weak refinery processing outweighed a sharp drop in imports.

China’s surplus crude for July amounted to 210,000 barrels per day (bpd) and came after the world’s biggest oil importer drew on stockpiles in both May and June amid supply constraints caused by the Iran conflict.

The return to a surplus in China’s crude availability in July comes as a surprise given the huge decline in imports, with seaborne arrivals of oil down more than 3 million bpd from levels prior to the conflict. This had seen China’s refiners draw on stockpiles by about 940,000 bpd in June and 500,000 bpd in May.

China does not disclose the volumes of crude flowing into or out of its strategic and commercial stockpiles, but an estimate can be made by deducting the amount of oil processed from the total crude available from imports and domestic output.

On this basis, crude oil imports of 8.41 million bpd and domestic output of 4.3 million bpd mean refiners had a total of 12.72 million bpd available.

China’s refiners processed 12.51 million bpd in July, according to official data released on Monday, down 15.8 percent from the same month last year and only marginally above the 12.47 million bpd from June.

Subtracting the July throughput from the total crude available leaves a surplus of about 210,000 bpd available for storage.

For the first seven months of the year China has added about 480,000 bpd to stockpiles after strong imports in the first quarter boosted the surplus of available crude.

What the numbers show is that China has not really had to tap its vast oil inventories, estimated to contain at least 1.2 billion barrels, despite dramatically cutting its crude imports since the start of the Iran war.

Since the US and Israel attacked Iran on February 28 shipments of crude and refined products through the Strait of Hormuz have been constrained as Iran attacked vessels, partly as retaliation but also to gain leverage for any eventual peace settlement.

Just under 20 percent of the world’s crude oil passed through the narrow waterway prior to the war, and while the volumes getting through now are disputed, even the most optimistic figures from the US government still point to a current loss of about 5 million bpd from the Middle East from pre-conflict levels.

CHINA ADJUSTS

China’s imports of 8.41 million bpd in July were up from the decade-low of 7.12 million in June, but were still more than 3 million bpd below pre-war levels.

To compensate for the lower imports, China has cut refinery processing rates, but they are still at levels sufficient to meet domestic demand.

China has instead cut exports of refined products, with shipments of 4.65 million metric tons in July being only marginally higher than the 4.36 million tons in June.

For the first seven months of the year fuel exports dropped 13.1 percent to 28.25 million metric tons, according to customs data.

Beijing placed restrictions on fuel exports shortly after the start of the Iran war, a measure aimed at ensuring domestic supply, but also one that allowed China to dramatically cut crude imports without dipping too far into stockpiles.

Beijing is easing restrictions on fuel exports for a second month in August, a move that will allow refiners to capture the elevated margins in Asia for diesel and gasoline.

However, allowing more fuel exports does lead to the question as to whether China will seek to lift crude imports, a move that may lead to higher prices given the ongoing supply disruptions from the Middle East.

China’s seaborne crude imports are estimated at 7.0 million bpd in August by commodity analysts Kpler, slightly higher than the 6.98 million recorded for July.

It’s likely that the August figure will be revised higher as more cargoes are assessed, but it is still certain to be well below the average of 11.52 million bpd for seaborne arrivals in the three months to end February.

This means that for August China is continuing to act as the main force absorbing the restricted crude supply from the Middle East.

From now on, the Bangladesh Bank (BB) will allocate half of any sukuk issue to Shariah-based banks, financial institutions and insurance companies.

A separate 30 percent will be allocated to Islamic branches and windows of conventional banks, the central bank said in a circular overhauling the subscription allocation for Shariah-compliant sukuk bonds.

Individual investors will get a dedicated 10 percent quota, up from a combined 15 percent they previously shared with provident funds, investment companies and corporate entities, it added.

Conventional banks, financial institutions and insurance companies, which held a 5 percent share, have now been grouped with provident funds, gratuity funds and mutual funds into a single 10 percent category.

Istequemal Hussain, director of the Debt Management Department at the BB, said the allocation for sukuk subscriptions was 80 percent for Shariah-based banks and Islamic banking branches and windows of conventional banks.

“We have separated this through a quota for Shariah-based banks. This is because Shariah-based banks cannot subscribe to conventional bonds and treasury bills, whereas conventional banks can,” he said.

The BB has reallocated the subscription quota ahead of the auction of a new sukuk.

The government is expected to raise Tk 30,000 crore in the current fiscal year by issuing various sukuk bonds.

Interest in sukuk has been rising since its launch in December 2020. With the auction of the first short-term, or nine-month, sukuk, the total amount raised by the government has exceeded Tk 53,000 crore.

Bangladesh's development pursuit may get a boost as the Islamic Development Bank (IsDB) chief will come here early next month with the confirmation offer of US$1.0-billion assistance in the first go.

The Jeddah-based lender might also offer extended support to Bangladesh government from its newly introduced IsDB Concessional Fund (ICF), a new lending facility of the IsDB, said an Economic Relations Division (ERD) official on Monday.

The IsDB President, Dr Muhammad Al Jasser, would arrive in Dhaka on September 2 and sit for different official programmes across on September 3, he added.

"His visit would extend our relations with IsDB. It will strengthen the bilateral relations of Bangladesh with the development partner," said ERD Additional Secretary Dr Md Mizanur Rahman.

He said in the presence of Prime Minister Tarique Rahman and the IsDB President, they were going to sign a deal on $1.0 billion worth of loan for financing the Easter Refinery Limited (ERL)'s oil-refinery-expansion project.

The loan will be utilised to enhance the ERL's oil-refining capacity to 4.5 million tonnes from the existing 1.5 million tonnes.

Mr Rahman says since the IsDB opened a 10-year-cycle ICF facility for the LDCs in February last, Bangladesh could avail up to $60 million worth of loan at a concessional rate. The interest rate for the ICF would be 1.5 per cent.

The ICF is a specialised financing facility to support 27 least-developed member-countries and vulnerable borrowers facing debt stress, fragility, or climate shocks.

According to the ERD, the IsDB President would take part in the official programme the day after his arrival.

He is expected to call on Prime Minister Tarique Rahman on September 3 when the $1.0-billion- loan deal will be signed between the ERD and the IsDB.

Besides, Mr Jasser might call on the ministers for Finance, Road Transport and Bridges, and Power, Energy and Mineral Resources the same day separately. The ERD official said the government would seek extended support from the IsDB in the years to come as Bangladesh needs huge investments for its energy and infrastructure development.

"We will also discuss the next Member Country Partnership Strategy (MCPS) for Bangladesh (2027-2030) with the President to finalise it," he added.

The IsDB Regional Hub Dhaka launched the last Member Country Partnership Strategy for Bangladesh (2024-2026) on April 29, 2024, with an estimated financing package of $5.15 billion to support the nation's structural transformation.

A 14-member delegation from the Confederation of Indian Industry (CII) is now in Bangladesh to explore opportunities for trade, investment and industrial cooperation with Bangladesh.

They arrived in Dhaka yesterday and will stay until Wednesday, according to the High Commission of India in Dhaka.

Led by CII Director General Chandrajit Banerjee, the delegation includes senior representatives from Indian companies in pharmaceuticals, healthcare, engineering, automobiles, manufacturing and energy, the high commission said.

The delegation includes representatives from Bharat Biotech, Infravision Foundation, Godrej Industries, Arvind Limited, LMW Global, Mahindra Group, Larsen & Toubro, Forbes Marshall, Numaligarh Refinery, Apollo Hospitals and Indian Oil Corporation.

The delegation is scheduled to meet senior government officials, including Commerce Minister Khandaker Abdul Muktadir, Finance and Planning Minister Amir Khosru Mahmud Chowdhury and State Minister for Foreign Affairs Shama Obaed Islam.

It will also hold discussions with Bangladeshi business leaders, including the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), which is hosting a luncheon for the delegation. Environment, Forest and Climate Change Minister Abdul Awal Mintoo will attend the event as chief guest.

FBCCI Administrator Md Fazlul Hoque said the discussions would focus on expanding bilateral trade and encouraging Indian companies to consider Bangladesh as an investment destination.

“An investor will naturally make a comparative analysis -- what happens if they invest there and what happens if they invest here,” Fazlul told The Daily Star.

He said Bangladesh’s large domestic market, competitive manufacturing base and access to international markets could make it an attractive location for Indian investment.

Indian companies, he said, could potentially manufacture in Bangladesh for both the domestic market and exports to India and other destinations.

Fazlul also said that Bangladesh should push for the removal of tariff and non-tariff barriers that limit its exports to India. “India is our important neighbour in every respect and, because of its proximity, our nearest large market,” he said.

Bilateral trade between Dhaka and Delhi reached about $12.36 billion in fiscal year 2025-26, according to the High Commission of India in Dhaka. India exported goods worth $10.56 billion to Bangladesh, while Bangladesh’s exports to India stood at $1.78 billion.

The trade imbalance is likely to remain an important issue in discussions between the two sides. At the same time, business leaders say political differences between the two countries should not disrupt commercial relations.

“As businesses, we want to see trade and commerce continue without barriers,” Fazlul added.

Bangladeshi expatriate businesspeople and entrepreneurs based in the United Arab Emirates are planning to invest around Tk 1,000 crore in Bangladesh, mainly in technology-driven banking, renewable energy, food processing, tourism, education and healthcare.

The Bangladesh CIP-Business Association, which represents non-resident Bangladeshi Commercially Important Person (CIP) status holders living abroad, made the announcement yesterday at a press conference at the Economic Reporters’ Forum in Dhaka.

In a press statement, the association said its members are scheduled to meet the Bangladesh Investment Development Authority (BIDA) today to discuss the proposed investment, including the investment environment, government support and faster approval processes.

The proposed investments will include digital and AI-based Islamic banking, dry food processing and packaging, e-rental services, solar panels and renewable energy, tourism, education and healthcare, the statement added.

The investors said the plan’s implementation hinges on faster approvals, land or lease facilities, infrastructure support, investment protection and one-stop services.

Mohammad Rubel, speaking for the UAE-based NRB-CIP delegation, said expatriates want to contribute to productive sectors.

The announcement comes as UAE-based Bangladeshis report ongoing visa-related problems, including cases of stranded workers whose UAE visas have been cancelled, affecting their employment and businesses.

The association called for government-to-government talks to restore intra-country employer transfers for Bangladeshi workers, a facility it said has been unavailable for nearly 12 years.

The association also urged expanded consular services, including a 24-hour hotline and digital complaint management.

By most measures, Bangladesh is one of the planet’s great fish-producing nations. It ranks second in the world for fish caught in rivers, lakes and wetlands, and fifth for farmed fish production, according to a June 2026 report by the Food and Agriculture Organization (FAO).

The country’s production now exceeds 50 lakh tonnes, surpassing the annual demand for around 48.93 lakh tonnes, according to the Department of Fisheries (DoF) data.

Yet, government data shows that the country regularly imports thousands of tonnes of fish every year.

The reasons, according to government officials and importers, come down to variety. Some fish Bangladeshis want to eat aren’t available domestically in enough supply, or at all. Imports are needed to meet the demand of the processing industry, hotels and restaurants, and specialised markets.

WHAT COMES, HOW, AND FROM WHERE

Around 288 companies are currently registered to import fish and fish products into the country, according to DoF data.

The agency reports that Bangladesh imported 56,000 tonnes of fish, worth Tk 521 crore in fiscal year 2025-26. In the previous FY25, the figure stood at 55,000 tonnes worth Tk 475 crore. The amount was 71,000 tonnes, worth Tk 660 crore, in FY24, and 57,000 tonnes, worth Tk 406 crore, in FY23.

The fish importers bring in most often include rui, pangas, rupchanda, tuna, shad, mullet, dorab, and mackerel, along with dried fish like loitta and puti.

Most of it, 86 percent last fiscal year, arrives frozen – deeply chilled below -18°C, halting decay and extending shelf life for months. The rest comes chilled or on ice – kept just above freezing at 0°C-4°C using melting ice, offering superior texture for short-term use.

DoF data show that the main countries selling fish to Bangladesh are China, India, Myanmar, Japan, Oman, Pakistan, the UAE, South Korea, and Thailand.

WHY IMPORT

Importer Md Saheed Ali brings in a wide mix, marine fish – hilsa, rui, katla, Indian mackerel, horse mackerel, tuna, catfish, and chandana hilsa – from Yemen, Oman, Dubai, China, Pakistan, Myanmar, and India.

He also imports certain types of Hilsa, known locally as ruposhi or lafa, from as far as Uruguay.

Saheed’s customers are spread across the country. He said that some of the imported fish, including loitta, sell well mainly because they’re cheaper, which matters a lot to middle and lower-income families.

He stated that imports fill a real gap in what’s available domestically right now.

Another importer, Mohammad Rakibul Islam Rokon, brings in rui, katla, bhetki, and hilsa from India and Myanmar. He sells to markets across Dhaka, where demand for these fish stays high and steady.

The imports help meet the growing demand for these popular fish varieties among residents and ensure a steady supply in local markets, he said.

Hotels and restaurants are a major buyer of imported fish. A review of menus at several of Dhaka’s international hotels and Western-style seafood restaurants shows a similar reliance on imports.

A menu of Pan Pacific Sonargaon’s Jharna Grill, obtained from the hotel’s website, shows the pattern explicitly. The restaurant’s own menu copy describes its “Pacific-inspired cuisine” as built on ingredients including “Vietnamese prawns, Canadian salmon and Singapore crab.” Its seafood section features a Norwegian salmon steak, alongside a separate “Imported Steaks” section for its meat offerings.

The Westin Dhaka’s Seasonal Tastes restaurant ran a seafood festival in April and May this year built around “Authentic Chilled Norwegian Salmon,” alongside seafood paella and terrine.

An official of the luxury hotel,seeking anonymity, told The Daily Star, that demand runs high for imported seafood: chilled salmon, smoked salmon, tuna fillets, Chilean sea bass, and pangas fillets.

The hotel goes through about 2,300 kilogrammes of imported fish every month, he added.

A Sheraton Dhaka official, who also asked not to be named, said the hotel has a similar level of demand for imported sea fish, with consumption of approximately the same quantity each month.

Md Barkatul Alam, who oversees fish inspection and quality control at DoF, told The Daily Star that Bangladesh doesn’t need to import to survive, since it already produces enough, but imports help fill specific gaps in the market.

He noted that imports help meet demand for particular species and products and support different segments of the domestic market and fish-based industries.

NEED BETTER REGULATORY OVERSIGHT

The DoF official, however, stressed that a stricter regulatory oversight is needed to ensure the quality of imports.

“As the sources and types of imported fish and fishery products diversify, it is important to continuously strengthen our regulatory system so that only safe, quality and fit-for-human-consumption products enter the domestic market,” Barkatul said.

Stating that Bangladesh already has an administrative and institutional system for controlling fish imports, he said there is scope to make it more integrated and more science-based.

The objective, he said, should be to protect consumers while also ensuring fair trade and safeguarding the interests of domestic fish producers and responsible businesses.

Right now, regulatory oversight mostly comprises issuing no-objection certificates or conducting a limited number of tests, he said.

The system should cover the entire control chain, from assessment of exporting countries and establishments, pre-import verification and health certificate verification to risk-based border inspection, laboratory testing, traceability and post-clearance surveillance, he added.

The DoF official also suggested lining up Bangladesh’s rules with global trade standards, specifically the World Trade Organization’s food-safety agreement, which requires decisions to be based on science, not guesswork.

The Fish and Fish Products (Inspection and Quality Control) Rules, the Import Policy Order and other relevant regulatory and administrative arrangements should also be updated and strengthened where necessary, he said.