The government has instructed government officials to exercise utmost caution while using artificial intelligence (AI) tools for official work, warning that careless use could result in the unauthorised disclosure or transfer of sensitive and confidential government information to third parties.

In a notice issued recently, the Cabinet Division said the use of AI tools in various aspects of official activities in government offices is increasing.

While AI tools can improve the efficiency and productivity of government work, their careless use could pose risks to the security and confidentiality of official information, it said.

The division therefore asked all concerned to exercise the highest level of caution and responsibility when using AI tools in government offices to ensure the security and confidentiality of government information.

It also instructed officials to properly follow existing laws, rules, regulations and directives governing the protection and confidentiality of government information.

The notice comes as AI-powered tools, including generative AI applications capable of drafting, summarising, translating and analysing documents, are becoming increasingly accessible and are being used for a growing range of tasks.

Bangladesh is facing fiscal pressure driven by faster public debt accumulation relative to revenue generation, even as external sector indicators show signs of stabilisation, the central bank said in its latest systemic risk report released today (13 August).

According to the Bangladesh Bank's overview for the first half of fiscal year 2025-26, the government's debt-to-revenue ratio climbed further as debt expansion outpaced tax and non-tax revenue collection. The broader government debt-to-GDP ratio also rose modestly during the period.

The fiscal strain comes despite a marginal narrowing of the overall budget deficit-to-GDP ratio (including grants).

Higher debt accumulation relative to revenue generation continued to weigh on public finances, pushing up the debt-to-revenue ratio. However, overall deficit pressures eased slightly relative to GDP.

The trade balance-to-GDP ratio showed improvement during the review period. In contrast, the remittance-to-GDP ratio posted a marginal decline.

Inflation pressures continued to ease, while taka recorded a marginal appreciation against the US dollar, providing a cushion for import costs, according to the report.

Government borrowing dynamics reshaped the domestic treasury market, with 2- to 5-year treasury bonds overtaking the 5- to 10-year segment to become the largest holding. Short-term treasury bills continued to hold the largest share among money market instruments.

The central bank noted that bank lending growth to private non-financial corporations (NFCs) decelerated further, reflecting cautious credit deployment amid fiscal and macroeconomic adjustments. Non-bank depository corporations (NBDCs), however, saw a modest recovery in credit growth to the sector from near-zero levels.

While commercial banks maintained adequate liquidity indicators, including liquidity coverage ratios (LCR) and net stable funding ratios (NSFR) well above regulatory minimums, finance companies continued to struggle, recording overall negative profitability amid weak net interest income, the central bank said.

Bangladesh's apparel exports to the European Union fell 16.43% year-on-year to €8.64 billion in the first half of 2026, amid a broader contraction in the bloc's apparel import market.

The decline was driven by an 8.22% drop in shipment volumes and an 8.94% fall in average export prices during January-June, according to Eurostat data compiled by Bangladesh Apparel Voice (BAV) founder and Chief Executive Officer Mohiuddin Rubel.

The performance improved slightly in June, when Bangladesh's apparel exports to the EU rose 0.87% year-on-year to €1.37 billion. Shipment volumes increased 6.53% that month, partly offsetting a 5.31% decline in average prices.

Overall, the EU imported €41.10 billion worth of apparel from global suppliers in H1 2026, down 9.70% from a year earlier.

The decline reflected weaker consumer demand and lower prices across the bloc. Import volumes fell 6.40%, while average unit prices declined 3.53%.

Most major apparel-exporting countries also recorded sharp declines in the EU market.

Turkey's exports fell 14.60%, followed by Pakistan at 12.53%, India at 12.49%, Sri Lanka at 11.21%, China at 8.88% and Cambodia at 8.84%.

Vietnam was the only major supplier to post positive export growth, with shipments to the EU rising 0.36% in H1 2026.

Vietnam's export volumes fell 11.52%, but a 13.43% increase in average unit prices helped offset the decline in shipments. The price increase was the highest among the major suppliers during the period.

Indonesia and Cambodia also increased their average unit prices, but sharp declines in shipment volumes prevented them from achieving overall export growth.

The figures indicate that Bangladesh's export decline was deeper than the overall contraction in the EU apparel market, with both shipment volumes and prices falling significantly during the first six months of the year.

Bangladesh’s garment exports to the European Union (EU) fell by 16.43 percent year-on-year to €8.64 billion in the January-June period of 2026, according to data from Eurostat, the statistical office of the European Union.In the six months, the volume fell 8.22 percent year-on-year and prices decreased 8.94 percent.

However, the volume of goods shipped to the EU from Bangladesh in June alone rose 6.53 percent compared with the same month of the previous year, but in value terms, it experienced a fall of 5.31 percent, according to Eurostat data.

Also, the EU's apparel imports from the world fell 9.7 percent year-on-year in the first half of 2026 to €41.1 billion, while both the amount imported fell 6.4 percent and the average price decreased 3.53 percent.

In the same period, exports from Vietnam to the EU grew 0.36 percent to €2.06 billion. Interestingly, Vietnam shipped 11.52 percent less goods but raised prices by 13.43 percent.

Meanwhile, shipments from China, Turkey, India, Pakistan, Sri Lanka and Cambodia to the EU fell.

Bangladesh has barely used its three trade remedy tools -- anti-dumping, countervailing duty and safeguard measures -- against unfair imports even as it remains a frequent target of such measures abroad, a Bangladesh Foreign Trade Institute (BFTI) study has found.

The findings come as India’s Directorate General of Trade Remedies (DGTR) carries out an anti-dumping investigation into polyethylene terephthalate (PET) films exported from Bangladesh, China and Thailand, and has asked interested parties to take part in an oral hearing.

Producers not individually listed in the review findings face a residual duty of $445 per tonne on yarn and twine and $283 per tonne on sacking bags.

The neighbouring country has also completed a mid-term review of anti-dumping duties (ADD) on jute goods from Bangladesh and Nepal.

In final findings dated June 25, the Indian authority recommended a revised, producer-specific duty structure to replace the existing rates, which range from zero to $351.72 per tonne and have been in place since a December 2022 reimposition.

Under the new structure, most named Bangladeshi producers would face duties of $69 per tonne on jute yarn and twine and $120 per tonne on sacking bags.

Producers not individually listed would face a residual duty of $445 per tonne on yarn and twine and $283 per tonne on sacking bags.

The recommended rates will take effect once implemented through a Customs Notification from India’s Ministry of Finance.

According to the BFTI study, four other Bangladeshi export products currently face anti-dumping duties abroad, each imposed by a different country.

Pakistan applies duties of 12.14 percent on hydrogen peroxide from most Bangladeshi exporters, with lower individual rates for named companies, following a review completed in October 2021.

Turkey applies a duty of $0.80 per kilogramme on man-made synthetic and artificial staple fibre yarn, after an investigation found circumvention of existing measures, with an exemption for one Bangladeshi company.

Argentina applies a 42 percent duty on gloves made of 100 percent knitted textile materials, imposed in February 2021. Brazil applies a duty of $0.16 per kilogram on jute sacks and bags, a measure in place since 1992 and last reviewed in September 2021.

Since 1992, Bangladeshi exporters have faced nearly a dozen anti-dumping investigations by the above-mentioned importing countries, the BFTI study mentions.

The study, conducted for the Bangladesh Trade and Tariff Commission (BTTC), said Bangladesh is at a critical juncture as it prepares to graduate from least developed country status this November. After graduation, the country will lose duty-free and preferential market access and other trade support measures extended to LDCs.

“This transition will expand market access opportunities but simultaneously erode policy space for traditional protective measures such as regulatory duties, supplementary duties, and minimum tariff values,” the BFTI paper said.

In this changing landscape, WTO-compliant trade remedy mechanisms, including anti-dumping, countervailing duties and safeguard measures, will become essential both to shield domestic industries from unfair trade practices and to support Bangladeshi exporters facing investigations abroad, the paper said.

The LDC graduation is expected to expose local industries to intensified competition, including dumping, subsidised imports and sudden import surges, the BFTI warned.

A BTTC official, seeking anonymity, said import tariffs will decline as Bangladesh meets obligations under bilateral and multilateral trade agreements.

Harunur Rashid Shams, research fellow at the BFTI, told The Daily Star their research shows Bangladesh’s current tariff regime needs a gradual shift away from broad para-tariff protection toward a more transparent, evidence-based and WTO-compliant trade remedy system.

Para-tariffs are fees or taxes, other than customs duties, charged at the border on imported goods.

“As Bangladesh prepares for LDC graduation, strengthening anti-dumping, countervailing and safeguard mechanisms will be critical to protecting domestic industries without undermining international trade commitments,” he said.

The paper also said strengthening trade remedy mechanisms is important to support Bangladeshi exporters facing investigations abroad.

Shams said enhancing the BTTC’s analytical capacity with specialised economists, cost analysts, trade lawyers and a modern trade surveillance system is vital for Bangladesh to identify unfair trade practices and respond with internationally accepted policy tools.”Our findings also recommend creating secure mechanisms through which trusted industry associations can access product-specific import data. Better data will improve transparency, strengthen evidence-based analysis and support more credible trade remedy investigations,” he said.

Spectrum should be treated as a strategic national asset rather than a short-term revenue source, said Rehan Asad, the prime minister’s adviser on telecom and ICT, urging mobile operators and policymakers to focus on expanding connectivity and digital inclusion.

He was speaking at the “Spectrum for a Connected Bangladesh: Enabling Internet for All” event organised by the Telecom and Technology Reporters Network Bangladesh (TRNB) at Holiday Inn in Dhaka yesterday.

Speakers at the event called for a shift in Bangladesh’s approach to spectrum, arguing that pricing and allocation should prioritise affordable connectivity, network investment and digital inclusion rather than government revenue.

Bangladesh currently has 406 MHz of spectrum assigned to four mobile operators, while 79.4 MHz is due for renewal in November 2026, Rehan said.

He stressed that the telecom sector would remain vital over the next two to three decades as artificial intelligence transforms the economy, pointing to major opportunities in data centres, cloud computing and AI.

Bangladesh’s peak internet traffic, currently around 12.1 Tbps, could rise to about 30 Tbps by 2030, he said, adding that the government was working towards building capacity of at least 50 Tbps.

Bangladesh could potentially emerge as a regional data and AI hub if it develops reliable submarine cable connectivity, power supply and other infrastructure, he said.

“If we create the right ecosystem, lower the barriers to entry, enable seamless technology convergence, and treat connectivity as a strategic national asset rather than a short-term revenue source, there is no stopping Bangladesh,” Rehan said.

Bangladesh should remain open to technology convergence, he said, including satellite-mobile connectivity, where new technologies can benefit consumers.

Rehan highlighted the need to bring millions of people still using 2G feature phones into the digital economy. Local manufacturers have shown that affordable smartphones can be produced for Tk 5,000 to Tk 6,000, compared with around Tk 10,000 for the cheapest smartphones currently available, he said.

He urged operators to consider co-branding and bundling such devices with voice and data services to make smartphones and connectivity more affordable.

Robi Axiata CEO and Association of Mobile Telecom Operators of Bangladesh (AMTOB) President Ziad Shatara echoed Rehan, saying the value of spectrum should not be measured solely by the revenue it generates for the government.

“Excessive spectrum pricing can force operators to spend significant capital on spectrum fees instead of network investment,” he said, warning that this could ultimately affect service quality and consumers’ access to digital services.

“Affordable spectrum is not only about benefiting operators. Its primary purpose is to ensure better connectivity, create greater investment opportunities and build a stronger foundation for sustainable growth of Bangladesh’s digital economy,” Ziad added.

Banglalink CEO Johan Buse also called for affordable allocation.

“Affordable spectrum allocation will improve service quality, contribute to the country’s development and increase investment in the sector,” he said.

BTRC Chairman Major General Md Emdad Ul Bari (retd) said the regulator was aiming to strike a balance between customer service, operators’ business viability and economic growth.

“We need to find a ‘sweet point’ in spectrum pricing,” he said, stressing that telecom policy and spectrum prices should be based on scientific research rather than assumptions.

Grameenphone CEO Yasir Azman said spectrum renewal must be considered in the context of the industry’s changing business environment.

“Our industry structure and realities have fundamentally changed,” he said, noting that voice-call minutes had declined by 25 percent while average revenue per user remained unchanged.

He said operators’ contributions to the national exchequer had increased over the past five years, while returns on investment had declined.

The price of gold has been increased in the local market, with the best quality or 22-carat gold now costing Tk 2,158 more per bhori (11.664 grams), effective from today (15 August).

According to the new price set by the Bangladesh Jewellers Association (Bajus), the price of 22-carat gold now stands at Tk 236,779 per bhori, including VAT, effective from 10 am.

In a notification, Bajus said the decision to raise the price was taken in line with the rising price of tejabi gold (pure gold) in the local market. Notably, the price of the same category of gold was reduced by the same amount, Tk 2,158, just a day earlier, yesterday (14 August).

The latest hike comes within 24 hours of that price cut, effectively reversing it.

As per the new pricing, the price of 22-carat gold, including VAT, has been increased by Tk 2,158 to Tk 236,779 per bhori. The price of 21-carat gold has gone up by Tk 2,100 to Tk 226,165 per bhori.

Similarly, the price of 18-carat gold has increased by Tk 1,808 to Tk 194,206 per bhori, while the traditional (sanatan) quality gold now costs Tk 158,630 per bhori, up by Tk 1,458.

Despite the rise in gold prices, silver prices remain unchanged. The price of 22-carat silver, including VAT, has been set at Tk 5,074 per bhori.

Meanwhile, the price of 21-carat silver stands at Tk 4,841 per bhori, 18-carat silver at Tk 4,199 per bhori, and traditional quality silver at Tk 3,159 per bhori.

Fallow and single-crop lands in Sylhet should be brought under cultivation, while drainage and irrigation systems need to be improved and the cultivation of new and non-traditional crops expanded to ensure fuller utilisation of the land, Commerce Minister Khandakar Abdul Muktadir said yesterday.

The minister said the maximum utilisation of agricultural land, increasing productivity and farmers’ incomes are key priorities for the country’s future agricultural strategy.

He made the remarks at a district-level workshop on preparing the annual action plan for the 2026-27 fiscal year and reviewing the implementation progress of the previous year’s plan.

The Department of Agricultural Extension (DAE) organised the event under its “Agricultural Development Project in the Sylhet Region through Modern Technology” at Hotel Metro in Sylhet city.

Muktadir said a large portion of land in Sylhet remains either fallow or is cultivated only once a year due to natural and infrastructural constraints.

He noted that waterlogging in haor areas and low-lying regions during certain periods of the year limits agricultural activity.

He emphasised that canal excavation could serve as a sustainable solution for both draining excess water during the monsoon and ensuring irrigation during the dry season.

In a significant boost to the global credibility of Bangladesh's capital market, MSCI (Morgan Stanley Capital International) has announced that it will resume regular index reviews and implement corporate events for the MSCI Bangladesh Indexes starting November 2026.

The recent decision ends a more than three-year hiatus during which the global index provider placed the Bangladeshi market under "special treatment" in 2023 because of a controversial floor price mechanism introduced in 2022.

An MSCI special treatment is a protective mechanism under which MSCI modifies or freezes its standard index review rules for specific countries or individual stocks facing severe market disruptions.

In its August 2026 Equity Index Review report released on Wednesday, MSCI said it would not make any changes for Bangladesh in the current August cycle but would begin moving towards normalisation.

"MSCI will resume the implementation of index review changes as well as corporate events for the MSCI Bangladesh Indexes starting from the November 2026 Index Review," the report confirmed.

The index provider initially made the announcement for the MSCI global standard indexes on 5 August.

Ending the 'special treatment' era

Relations between the country's stock exchanges and global institutional investors soured in 2022 after the market regulator imposed floor prices to prevent a market crash amid economic volatility caused by the Russia-Ukraine conflict.

While the measure was intended as a safety net, it effectively blocked natural price discovery and restricted stock trading, making it nearly impossible for foreign fund managers to enter or exit positions.

In response, MSCI introduced the special measures in February 2023, freezing all updates to Bangladesh's indexes and suspending the inclusion of corporate events such as rights issues, buybacks and mergers.

The move effectively sidelined Bangladesh from the global investment landscape for passive funds that track MSCI benchmarks.

The situation began to shift in June this year, when the newly reconstituted Bangladesh Securities and Exchange Commission (BSEC), led by Chairman Masud Khan, lifted all remaining floor prices and pledged to keep the market free from artificial interventions.

MSCI has since formally welcomed the removal of the floor prices, paving the way for the resumption of regular index reviews.

A 'green signal' for global investors

Salim Afzal Shawon, head of research at BRAC EPL Stock Brokerage Limited, told The Business Standard that MSCI is the most widely used index provider among major institutional investors and fund managers worldwide.

"MSCI regularly evaluates how easy it is for foreigners to invest and how 'investable' a market is. Bangladesh is currently part of the MSCI Frontier Market Index. Following the installation of the floor price, MSCI took special measures because the normal flow of trading was obstructed," Shawon explained.

"The fact that index review changes and corporate events will be implemented normally from November 2026 is a very strong signal to global investors. It suggests that the Bangladeshi market is finally returning to a market-driven, normal state. This will undoubtedly enhance our appeal to international capital," he added.

Why MSCI matters

For emerging and frontier economies, an MSCI classification is more than just a label. It can determine how easily international funds can access a market and how much capital is directed towards it.

Trillions of dollars in global funds and exchange-traded funds (ETFs) directly mimic these indexes. When MSCI adds a stock or increases a country's weighting, funds that track the relevant benchmark may need to buy those shares, potentially generating significant capital inflows.

A senior researcher at an asset management company noted that MSCI is far more influential in this region than other providers like FTSE.

"For a frontier market like ours, the MSCI Frontier Markets Index is the primary yardstick. Periodic rebalancing affects the weight of our stocks, which directly impacts liquidity and price stability," he said.

Current standing and constituents

The MSCI Bangladesh Index currently features seven high-cap stocks that meet the criteria for global investability: Square Pharmaceuticals, Grameenphone, British American Tobacco (BAT) Bangladesh, Robi Axiata, Beximco Limited, Renata, and United Power.

These seven companies collectively represent a free-float market capitalisation of approximately $1.96 billion.

Furthermore, the broader MSCI Bangladesh Investable Market Index (IMI), which includes mid and small-cap firms, currently lists 36 Bangladeshi stocks.

The Bangladesh Securities and Exchange Commission (BSEC) has resolved a technical bottleneck that had been hampering foreign-owned banks serving as custodians for mutual funds.

However, the regulator has now allowed local management committees at these banks to authorise signatories for mutual fund bank and securities accounts, addressing a structural mismatch between BSEC rules and how multinational banks are organised.

Under the BSEC (Mutual Fund) Rules, 2025, signatories for mutual fund accounts were required to be nominated by the custodian's board of directors. But many foreign-owned banks operating in Bangladesh do not maintain a local board, given their global corporate structures.

Instead, their Bangladesh operations are typically overseen by a "Management Committee" or designated "Nominated Persons," who function as the highest local decision-making authority in the absence of a board.

The BSEC's move brings the rule in line with this reality, clearing the way for these banks to continue operating as custodians without the earlier procedural hurdle.

Recognizing this practical difficulty, the regulator issued a directive today (13 August) to ensure the smooth implementation of the 2025 Rules while safeguarding investor interests. The directive comes into force immediately.

The BSEC stated that for foreign-owned banks, the management committee or designated authorities will now be legally empowered to act on behalf of a board of directors to nominate signatories.

Market insiders noted that this move provides much-needed regulatory clarity for international banks—such as Standard Chartered and HSBC, which play a significant role as custodians in the country's capital market.

By aligning the law with the operational reality of multinational banks, the BSEC aims to ensure that mutual fund operations remain uninterrupted and compliant with the updated regulatory framework.

Dhaka Bank PLC has decided to raise Tk300 crore through the issuance of a contingent-convertible perpetual bond to strengthen its capital base and ensure compliance with international Basel-III standards.

The decision was finalised during the bank's board meeting held on Thursday, according to a price-sensitive disclosure.

The bank said the fresh capital will be categorised as Additional Tier-1 capital. This strategic move is aimed at addressing a marginal shortfall in the bank's core capital.

According to its half-yearly unaudited report for 2026, the bank's Tier-I capital (going concern capital) stood at 8.19%, which is below the 8.50% threshold mandated by the Bangladesh Bank. While the bank's total capital ratio remained compliant at 12.66% – slightly above the 12.50% requirement – the issuance is necessary to reinforce its primary capital layer.

Industry analysts suggest that the new bond will provide a much-needed buffer to stabilise cash flows and support future asset growth.

The issuance remains subject to final approval from the Bangladesh Securities and Exchange Commission and the central bank.

The capital injection comes at a time when the lender is facing significant pressure on its core banking operations.

During the first half of 2026, Dhaka Bank reported a 13% decline in consolidated net profit, which fell to Tk100 crore. A primary driver of this downturn was a staggering 45% plunge in net interest income, which settled at Tk122 crore.

Consequently, the consolidated earnings per share (EPS) for the six months stood at Tk0.95, down from the previous year.

Despite the struggle in core lending, the bank managed a resilient performance in the second quarter (April–June), posting a 33% growth in consolidated net profit.

This recovery was largely underpinned by robust income from government Treasury bonds and other operating segments, which successfully cushioned the shortfall in interest earnings. Quarterly EPS improved to Tk0.38 from Tk0.29 a year ago.

However, the bank is currently navigating a liquidity crunch, as evidenced by a negative consolidated net operating cash flow per share of Tk10.43 for the first half of the year.

The Chittagong Stock Exchange (CSE) is fully prepared to launch a commodity exchange, with preparations across the market ecosystem in their final stage, the bourse’s Managing Director M Shaifur Rahman Mazumdar said yesterday.

A standard commodity exchange will help manage price volatility and could make a significant contribution to Gross Domestic Product, he said in a keynote paper at a seminar on commodity exchange operations, held at the MS Trade Centre in Khatunganj, Chattogram.

The CSE, in collaboration with the Khatunganj Trade and Industries Association, organised the seminar, according to a press release.

Shaifur stated that neighbouring countries, including India, Pakistan and Myanmar, already have commodity exchanges.

“An effective commodity market is an essential part of Bangladesh’s financial system. It will create new investment opportunities and add a new dimension to the country’s existing financial market,” he said.

The CSE MD said he hoped the Khatunganj Trade and Industries Association, along with its member businesses and institutions, would make the necessary preparations to participate in the new platform and contribute to the economy by joining the upcoming commodity market.

Mohammad Abdus Salam, president of the Khatunganj Trade and Industries Association, said the need for an effective commodity market in Bangladesh is undeniable.

“We hope that a commodity market will significantly reduce many of the risks currently present in the spot market,” he said, adding that the association is interested in working with the CSE on this front.

Collective efforts could help make the new market a reality and turn it into a suitable investment avenue in Bangladesh, he added.

CSE Director Emdadul Islam said commodity markets around the world see significant trading volumes, and that both the capital market and the broader economy would benefit once a commodity market starts operating in Bangladesh.

The CSE has been working for the past three years to establish a commodity exchange. The necessary laws and regulations have been formulated, and the trading platform is ready.

Preparations for market participants are now underway. Islam said the remaining work can be completed quickly with government and regulatory support, allowing the exchange to begin operations soon.

The board of directors of City Bank PLC has proposed increasing the bank's authorised capital by 50% to Tk3,000 crore, creating room to strengthen its paid-up capital amid new Bangladesh Bank dividend requirements.

The decision was taken at a board meeting last Thursday, according to a price-sensitive disclosure.

The proposal would raise the authorised capital from Tk2,000 crore to Tk3,000 crore, divided into 300 crore ordinary shares with a face value of Tk10 each. It requires shareholder approval at an Extraordinary General Meeting (EGM) and subsequent regulatory clearance.

The bank has scheduled the EGM for 4 October 2026 at 3pm through a digital platform. The record date for determining shareholders eligible to vote has been set for 6 September.

Preparing for BB's dividend rules

The move comes as City Bank prepares to meet Bangladesh Bank's new capital requirements. In a circular issued on 23 May, the central bank said commercial banks with paid-up capital below Tk2,000 crore will be barred from declaring cash dividends from 31 December 2026.

City Bank's current paid-up capital is Tk1,749.40 crore, leaving a Tk250 crore gap to the required threshold. The bank paid a 15% cash dividend and a 15% stock dividend for 2025.

By increasing its authorised capital, the bank will create the legal headroom to issue additional bonus or rights shares in the coming years and raise its paid-up capital above the regulatory threshold.

Bangladesh Bank's policy is aimed at strengthening banks' overall capital base. It also limits even well-capitalised banks to paying a maximum of 50% of their declared dividends in cash.

Board expansion proposed

City Bank has also proposed increasing the maximum number of non-independent directors from eight to ten. Shareholder approval will be sought to amend the relevant provisions of the bank's Memorandum and Articles of Association.

The board currently has seven shareholder directors. Partex Group holds three seats, while Anwar Group and Aziz Group hold one each. The board also includes an individual businessman and a nominee of the International Finance Corporation (IFC), the private-sector arm of the World Bank Group.

Bank insiders said the proposed expansion could allow broader representation of the bank's diverse shareholder base or bring in new strategic professionals.

Strong financial performance

The proposals come amid strong growth in City Bank's earnings. Its consolidated profit rose from Tk478 crore in 2022 to a record Tk1,324 crore in 2025. The bank posted Tk527 crore in consolidated profit in the first half of 2026.

City Bank shares closed at Tk31.20 on the Dhaka Stock Exchange on Thursday, giving the lender a market capitalisation of Tk5,458 crore.

Analysts said the bank's proactive capital management could support long-term dividend sustainability and strengthen its institutional position.

The country's premier bourse managed to eke out a modest gain last week, supported by optimism over potential regulatory shifts, though persistent energy shortages and global geopolitical tensions kept investor participation in check.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) climbed 23 points to settle at 5,884 by the week's close. However, cautious sentiment prevailed among participants, leading to a 15.6% drop in average daily turnover, which settled at Tk990 crore.

According to weekly reviews by Sheltech Brokerage and EBL Securities, the market pulse was primarily shaped by expectations surrounding more flexible margin financing regulations. While the week opened under selling pressure, a mid-week rally – driven by reports of imminent amendments to margin lending rules – briefly pushed the DSEX back above the 5,900-point threshold.

However, the momentum failed to sustain until the final session. Investors opted to lock in profits toward the end of the week, spooked by the ongoing industrial gas supply crisis and the lack of a formal notification regarding the proposed regulatory changes.

On the sectoral front, trading activity was concentrated in Textiles (22.1%), followed by General Insurance (18.3%) and Pharmaceuticals (8.5%).

In terms of returns, the Jute, Services, and Textile sectors emerged as the top gainers. Conversely, the Mutual Fund, Life Insurance, and Telecommunications sectors faced the sharpest corrections as investors rebalanced their portfolios.

The US dollar ticked higher on Wednesday, underpinned by renewed Gulf tensions, with markets focused on upcoming US economic data for signals on the Fed’s policy trajectory.

Oil prices edged up after the United States and Yemen’s Iran-aligned Houthis reported separate attacks on shipping on Tuesday, with Tehran saying the Strait of Hormuz would remain closed unless Washington accepts its conditions.

Investors buy the safe-haven dollar when concerns about the economic impact of the energy shock from the Iran war intensify.

Analysts said Friday’s soft US jobs data did not weigh heavily on the greenback as markets expect inflation to drive the next Federal Reserve interest rate move.

Fed Bank of Chicago President Austan Goolsbee supported this view on Tuesday by saying he was more concerned about too-high inflation than labor market weakness.

Economists expect data due later in the session to show inflation picked up last month after easing in June, when oil prices fell on hopes of an Iran peace deal.

“Consensus is looking for a reasonably subdued set of numbers,” Chris Turner, global head of markets at ING, said.

“A soft number should drag market pricing of a September Fed rate hike away from a 50 percent probability in favour of no change,” he added.

The main focus for markets this week is US inflation data due later on Wednesday for clues to the direction of Fed interest rates, as last week’s softer-than-expected jobs report and a press conference by Fed Chair Kevin Warsh last month did little to dispel doubts.

Fed funds futures imply a 50 percent chance the central bank will leave rates unchanged at its two-day meeting ending September 16, according to the CME Group’s FedWatch tool.

The US dollar index, which measures the greenback’s strength against a basket of six currencies, was up 0.05 percent at 99.85.

Taiwan's Foxconn, the world's largest contract electronics maker, reported on Wednesday a 35 percent rise in second-quarter profit, beating analyst forecasts, on continued strong demand for AI, which it predicted would drive growth this year.

Net profit for the April to June period for Nvidia's biggest server maker and Apple's top iPhone assembler was T$59.97 billion ($1.86 billion), versus an LSEG consensus estimate of T$58.8 billion and compared with T$44.4 billion a year earlier.

In an earnings release, it stuck to its previous forecast of "strong" growth for revenue this year and said it also saw strong AI demand driving growth throughout the year. The company does not give numeric forecasts.

The company, formally called Hon Hai Precision Industry, said its cloud and networking products segment, which includes AI servers, accounted for 51 percent of second-quarter revenue, exceeding 50 percent for the first time, while its smart consumer electronics products segment, which includes iPhones, accounted for 29 percent.

"AI-related business performance will continue to grow in the third quarter. Combined with ICT products entering their peak season in the second half of the year, we expect significant quarter-on-quarter growth and strong year-on-year growth," said rotating CEO Michael Chiang.

When asked about updates on Nvidia's latest Vera Rubin server products that Foxconn manufactures, Chiang said the AI server racks would enter mass-production preparation in the third quarter, with shipments expected to begin in the fourth quarter.

"We expect production volumes to increase gradually over the next several quarters, and it (Vera Rubin) will become our major product next year," he said.

While customer demand remains very strong, Chiang cautioned that the key determinant for the overall AI server rack market next year will be how much CoWoS capacity chip companies are able to secure.

Foxconn's customers, including Nvidia, rely heavily on manufacturing by Taiwan's TSMC, the world's largest contract chipmaker.

CoWoS, or Chip on Wafer on Substrate, is a key advanced packaging technology developed by TSMC used in AI chip production that has been constrained by tight capacity amid booming AI demand.

"The market currently expects CoWoS capacity to grow by more than 50 percent next year, but how much of that can ultimately be translated into shipments of next-generation AI server racks will depend on chip supply," Chiang said.

CAPITAL EXPENDITURE

Foxconn expects its capital expenditure to continue growing and forecasts a 30 percent increase in 2026 from a year earlier.

In July, Foxconn reported a 40 percent year-on-year jump in second-quarter revenue.

Most of the iPhones Foxconn makes for Apple are assembled in China, but it now produces the bulk of those sold in the United States in India.

The company is also building factories in Mexico and Texas to make AI servers for Nvidia.

Foxconn has also been looking to expand its footprint in electric vehicles.

The company's shares have risen 17 percent so far this year, underperforming the broader Taiwan index's 57 percent gain.

Foxconn shares closed 2.7 percent higher on Wednesday ahead of the earnings release.

Oil prices rose on Wednesday after attacks on two ships reinforced worries about disruptions to Middle East supplies, while industry data showing swelling inventories of US crude might keep bulls in check.

Brent futures were up 90 cents, or 1 percent, at $89.81 a barrel by 0757 GMT, set for their sixth day of gains.

US West Texas Intermediate (WTI) crude climbed 88 cents, or 1.1 percent, to $84.08, up for a fifth day. Both contracts earlier rose more than $1.

The United States and Yemen’s Iran-aligned Houthis reported separate attacks on shipping in the Strait of Hormuz and the Bab el-Mandeb Strait on Tuesday, two crucial export valves for Middle Eastern oil and gas in addition to the Suez canal.

Iran’s top security official said Hormuz would stay closed unless the US accepted Iran’s conditions to end the war, including release of its frozen assets.

Shipping data showed the number of vessels transiting Hormuz fell to a one-week low of eight on Tuesday. Before the war, 125 to 140 vessels passed through the crucial waterway each day.

In Libya, the country’s National Oil Corporation said all fires at fuel storage tanks in the Zawiya oil complex were under control. On the supply front, a Reuters poll showed that US crude oil and fuel inventories were expected to have fallen last week.

However, market sources citing American Petroleum Institute data said US crude inventories rose sharply, while gasoline and distillate stocks fell.

Crude stocks rose by about 9.1 million barrels, while gasoline and distillate inventories fell by 1.5 million barrels and 596,000 barrels, respectively, from the previous week, the sources said.

The crude build far exceeded expectations and, if confirmed by the Energy Information Administration report later on Wednesday, could ease market concerns about supply tightness, Haitong Futures said in a note.

Official numbers from the EIA, the statistical arm of the US Department of Energy, are due at 10:30 a.m. ET (1430 GMT).

For longer-term supply, the EIA expected significant disruptions to Middle East crude supplies to persist through the end of 2027.

The EIA said it expects 2026 Brent crude oil prices to average $86.81 a barrel, and WTI to average $80.88.

Bangladesh will formally begin discussions with the European Union next month on signing a free trade agreement (FTA), Commerce Minister Khandakar Abdul Muktadir said today (12 August).

He made the remark while speaking as the chief guest at a seminar titled "Halal Ecosystem in the ASEAN Region: Prospects for Bangladesh", organised by the Bangladesh Institute of International and Strategic Studies (BIISS).

The European Union is the largest export market for Bangladesh. As a least developed country (LDC), Bangladesh currently enjoys duty-free market access to the bloc under the Everything But Arms (EBA) scheme, which will remain in place for three years after the country graduates from the LDC category.

Bangladesh has long been seeking an FTA with the EU as it prepares to lose LDC-specific trade preferences.

Vietnam and India, Bangladesh's major competitors in garment exports to the European market, have already signed FTAs with the EU.

The minister further said Bangladesh is preparing to sign bilateral FTAs with Malaysia and Indonesia at the earliest possible time.

"We are taking initiatives to sign FTAs to ensure preferential market access for Bangladeshi investors in global markets before LDC graduation," he said. Negotiations on FTAs are also underway with another 10 to 12 countries."

Asked whether a Bangladeshi delegation would travel to Europe for the FTA discussions or an EU delegation would visit Bangladesh, a ministry official told The Business Standard that discussions on the matter were ongoing and no decision had yet been finalised.

At the seminar, Muktadir also called for the development of a strong, internationally recognised halal ecosystem by drawing on the experience of Asean countries.

"The halal economy can no longer be confined to the food and beverage sector," he said.

"It has evolved into a large global economic system encompassing food, pharmaceuticals, cosmetics, modest fashion, tourism, logistics, technology, financing and international certification," he added.

BIISS Director General Major General ASM Redwanur Rahman delivered the welcome address at the seminar, while BIISS Research Director Dr Mahfuz Kabir presented the keynote paper.

Trade deals that secure preferential market access will become increasingly important for Bangladesh as it prepares to graduate from least developed country (LDC) status amid a tougher global trade environment, said a senior HSBC official.

The comments came at an event titled, “Navigating Global Trade: Future-Proofing Bangladesh”, organised by HSBC in Dhaka on Tuesday.

Shanella L Rajanayagam, senior trade economist at HSBC Global Research UK, outlined the immediate disruptions facing global trade and their implications for Bangladesh in a presentation at the event.

She noted that while global trade ended 2025 on a strong footing, risks ranging from shipping disruptions to uncertainty over US trade policy require close monitoring in the year ahead.

She also pointed to the longer-term challenges posed by Bangladesh’s graduation from LDC status.

“Global trade is facing disruption on multiple fronts, from shipping shocks to shifting US tariff policy and rising protectionism. With Bangladesh preparing to graduate from least developed country status against this tougher global backdrop, securing preferential market access through trade deals matters more than ever,” she said.

Md Mahbub ur Rahman, chief executive officer of HSBC Bangladesh, said new opportunities are emerging for Bangladesh as global trade patterns change.

“Powered by strong domestic demand, a dynamic young workforce, and rising trade volumes, Bangladeshi businesses are exceptionally positioned to navigate this transformation, move up the global value chain, and thrive on the world stage,” he said.

Aditya Gahlaut, managing director and regional head of Global Trade Solutions for Asia at HSBC, said a series of unsettling events in recent years has changed how companies view resilience.

"It is not just an operational ambition – it is a balance sheet decision, often requiring difficult trade-offs on capital and liquidity. Each one of these choices requires capital -- to commit, to hedge, to fund the transition, and to make the new operating model real," he said, adding that HSBC can support them all.

Ahmad Rabiul Hasan, country head of Global Trade Solutions at HSBC Bangladesh, said the bank would continue to support businesses as they adapt to the changing global trade landscape.

A 45-member business delegation from the United States, representing 25 companies under the US-Bangladesh Business Council (USBBC), arrived in Dhaka on August 11 to explore investment opportunities.

The USBBC, a wing of the US Chamber of Commerce, is the advocacy body representing American business interests in bilateral trade with Bangladesh.

The delegation includes officials from major American companies such as Chevron, Excelerate Energy, Visa and Mastercard, according to a US Embassy official in Dhaka.

They are targeting technology, AI and digital innovation, cloud and cybersecurity, healthcare and life sciences, renewable energy, advanced manufacturing, and the financial sector, the official added.

The delegation has held a series of meetings with trade bodies and ministry officials to gauge investment potential across sectors, the embassy official said.

MEETING WITH AMCHAM

Following their arrival, the delegation held an informal meeting at a Dhaka hotel yesterday with leaders of the American Chamber of Commerce (AmCham) in Bangladesh, a trade body representing US-affiliated companies operating in the country.

They sought details on trade barriers and priority investment sectors, according to AmCham members.

“We want to bring $5 billion investment from the US entrepreneurs in Bangladesh over the next five years,” a senior AmCham member said after the meeting.

MEETING WITH INDUSTRIES MINISTER

The delegation also met Industries Minister Khandakar Abdul Muktadir at the ministry on the same day.

After the meeting, Muktadir said the government is working to boost export capacity in the jute, leather, shipbuilding and ship-recycling sectors, according to a statement from the industries ministry.

Measures aimed at turning these sectors into multi-billion-dollar export industries will be announced publicly next month, he informed.

A proposed free trade agreement with the European Union was also discussed with the US delegation, the minister also said, adding that formal talks with the EU are expected to begin soon.

Muktadir added that the government is simplifying business processes and improving access to energy, and is introducing liberalisation in the banking sector that would give IT companies and freelancers easier access to digital payment gateways.

The two sides also discussed trade and export policy, the digital economy, e-commerce, and sectors Bangladesh should prioritise to reach a trillion-dollar economy.

MEETING WITH PM’S ADVISER

Separately, USBBC President Atul Keshap met Prime Minister’s Foreign Affairs Adviser Humayun Kabir at the Prime Minister’s Office, according to a statement from the foreign ministry.

Keshap said expanding private-sector cooperation between Bangladesh and the US was a priority, and expressed interest in taking bilateral business relations to a new level.

The meeting also discussed opportunities for US investment in infrastructure, energy, technology, the digital economy and healthcare.

Kabir said the government remains committed to maintaining a business- and investment-friendly environment for US investors.