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 has clear legal and regulatory procedures for awarding natural resource extraction contracts and licences, but provides only limited information on public procurement contracts, according to a US government report.

The interim government introduced an electronic public procurement system, but access to the system could be improved, said the 2026 Fiscal Transparency Report: Bangladesh, published recently by the US Department of State.

The report recommended that Bangladesh publish basic information on natural resource extraction awards and public procurement contracts to improve fiscal transparency.

It said the interim government made progress by publishing its end-of-year report within a reasonable time and making its proposed and enacted budgets available online.

Budget information was generally reliable, and the government publicly disclosed its debt obligations. The budget also provided a fairly complete picture of planned revenues and expenditures, including income from natural resources.

However, the report said Bangladesh’s budget documents were not prepared in line with internationally accepted standards. They did not provide details of spending by executive offices or a complete picture of government revenues and expenditures.

The report also raised concerns about Bangladesh’s supreme audit institution, the Comptroller and Auditor General. It said the institution did not review government accounts and did not meet international standards for independence.

To improve transparency, the US recommended that Bangladesh align its budget documents with international standards, ensure actual revenues and expenditures broadly match the approved budget, and strengthen the independence and resources of the supreme audit institution.

It also recommended publishing audit reports on time, with detailed findings and recommendations.

The government is pursuing deregulation and business-friendly measures to make it easier to do business and attract investment, Finance Minister Amir Khosru Mahmud Chowdhury has said.

He made the remarks during a meeting with the visiting US business delegation at the Secretariat today (12 August), according to sources familiar with the meeting.

The delegation was led by Oliver Simpson, executive vice-president and chief commercial officer of Excelerate Energy.

The US business representatives expressed interest in investing in various sectors of Bangladesh at the meeting, the sources said.

The finance minister said the government had decided to pursue deregulation to facilitate business and trade and reduce bureaucratic complications in government institutions.

He also said deregulation was being pursued to reduce corruption.

The government had already restored customers' confidence in the banking sector and was working to ensure accountability in other public and private institutions, he added.

"We are simplifying all kinds of policy support and formulating business- and trade-friendly laws and regulations," he added.

Ravi Aurora, senior vice-president for Multilateral Institutions, International Affairs, Government Affairs and Policy at Mastercard, delivered the delegation's opening remarks.

"Our expectation from a democratic government is to ensure a favourable environment for business and investment," Aurora said.

"We have come to see the business and investment environment in this country. There are tremendous investment opportunities and huge potential," he added.

He further said US businesses were also ready to increase investment if the government provided the necessary policy support.

Bangladesh Bank has cancelled the remaining tenure of its chief economist, Mohammad Akhtar Hossain.

The Human Resources Department-1 of Bangladesh Bank said in a notification yesterday that the remaining period of Akhtar’s contractual appointment as chief economist has been cancelled with effect from September 10, 2026.

Akhtar was appointed chief economist of Bangladesh Bank on a two-year contractual basis on July 1 last year. His tenure was therefore scheduled to run until June 30, 2027, leaving around 10 months of his contract remaining.

As chief economist, Akhtar provided policy advice to the central bank’s governor and board of directors on macroeconomic issues, monetary policy, and the stability of the banking sector.

The chief economist’s position is considered important in Bangladesh Bank’s economic policymaking, particularly in analysing macroeconomic developments and formulating monetary and financial-sector policies.

The central bank’s notification did not specify any reason for cancelling his contract before its scheduled expiry.

The Dhaka Stock Exchange (DSE) PLC has awarded FIX certification to five more brokerage houses, paving the way for them to launch their own Order Management Systems (OMS) through API connectivity.

The newly certified firms are Emperor Securities & Wealth Management Ltd, Global Securities Ltd, Md Fakhrul Islam Securities Ltd, SIBL Securities Limited, and Stock & Bond Limited.

DSE Chief Technology Officer Asifur Rahman handed over the certificates to the brokerage houses at a ceremony held at the DSE boardroom on Wednesday.

With the latest additions, the total number of brokerage houses that were awarded FIX certification has risen to 66. Of them, 56 houses have already gone live with their own OMS through API connectivity after receiving the certification.

The DSE took the initiative to launch the API-based Broker House Order Management System (BHOMS) in 2020, after which 93 brokerage houses applied for API connectivity with the Nasdaq matching engine to trade through their own order management systems.

The FIX (Financial Information eXchange) certification allows brokerage houses to connect their proprietary trading platforms directly to the exchange's matching engine, enabling faster and more efficient order execution for investors.

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.

Bangladesh is turning to alternative sources of financing to help address a $421 billion funding gap for achieving the Sustainable Development Goals, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said today (12 August).

Speaking to journalists on the sidelines of an SDG conference at the Bangladesh-China Friendship Conference Centre in Dhaka, Khosru said the government could not rely solely on traditional public financing to meet the country's development needs.

"There is a limitation in traditional public financing. We are now talking about alternative financing because the global public finance architecture is changing," he said.

He said Bangladesh is seeking to take advantage of the changing global financing landscape, including by developing the capital market and attracting foreign fund managers.

There is a limitation in traditional public financing. We are now talking about alternative financing because the global public finance architecture is changing.

Amir Khosru Mahmud Chowdhury, Finance and Planning Minister
"We are already moving forward with the capital market. Our foreign fund managers are coming. There are now many products through which we can partly fill the gap through alternative financing," Khosru said.

He also said the government is working to increase revenue by raising the tax-to-GDP ratio, expressing hope that the effort would ultimately succeed.

Govt seeks stakeholder input

Asked whether recommendations made by different stakeholders at the conference would be incorporated into government programmes, Khosru said the government would consider issues that are not already covered by its existing programmes.

"We note these through various channels. If there is anything that is not already covered by our programmes, we incorporate it," he said.

He said consultation with stakeholders is an important part of the government's work and that the process would continue. "We discuss and work with everyone."

Earlier, State Minister for Planning Zonayed Saki said SDG implementation should not be treated merely as an international obligation or an exercise in preparing reports. The government's main objective, he said, was to bring tangible improvements to people's lives.

Exclusion from public services raised

The conference also highlighted the difficulties faced by marginalised groups in obtaining national identity cards, which participants said prevented some people from accessing various government services.

Mohammad Wasim, a van driver from the Mazar Road area of Mirpur, said many homeless people in the area did not have national identity cards.

Ramisa Chowdhury, representing the transgender community, said many members of the community faced difficulties in obtaining national identity cards.

Sohanur Rahman, representing young people, said many members of the Manta community in Barishal also did not have national identity cards.

No one in Bangladesh should be denied the opportunity to have their voice heard, regardless of their identity or social position.

Debapriya Bhattacharya, Convener, Citizen's Platform for SDGs
The three-day SDG conference was jointly organised by the General Economics Division of the Bangladesh Planning Commission and the Governance Innovation Unit of the Prime Minister's Office, with the Citizen's Platform also involved in the initiative.

The first session on the final day focused on "Inclusive Development, Reform and the Five-Year Strategic Framework for Development and the SDGs". Social Welfare Minister AZM Zahid Hossain attended the session as the chief guest, while Debapriya Bhattacharya, distinguished fellow at the Centre for Policy Dialogue and convener of the Citizen's Platform for SDGs, chaired it.

Civil society vows to monitor reforms

In his concluding remarks, Debapriya said no one in Bangladesh should be denied the opportunity to have their voice heard, regardless of their identity or social position.

He said civil society organisations had a responsibility to continuously convey people's concerns and demands to policymakers.

"We will see how much of the challenges presented by the minister are implemented over four years. We will also monitor how the five-year work progresses. We will keep watching every day what is being done and what is not being done," he said.

Debapriya said the Citizen's Platform would monitor the government's commitments and reform initiatives through its Reform Tracker and Manifesto Watch.

He said people are placing considerable expectations and trust in policymakers and urged the government to ensure that those expectations did not turn into disappointment.

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.

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.

Government Pension Fund Global, the world's largest sovereign wealth fund, has significantly scaled back its exposure to the Bangladeshi capital market.

During the first half of 2026, the fund's investment in the country dropped by 18%, equivalent to a reduction of $21.25 million.

According to the half-yearly report released today (12 August) by Norges Bank Investment Management (NBIM), which manages the fund, the total value of its Bangladeshi portfolio stood at $95.87 million as of June 2026.

This decline marks a continued retreat from a peak valuation of $248.35 million recorded in 2020. Over the last six years, the fund – popularly known as the "Oil Fund" due to its origins in managing Norway's petroleum revenues – has steadily reduced its footprint in the Dhaka bourse. From $211.89 million in 2021, the investment fell to $155.04 million in 2022 and further down to $117.12 million by the end of 2025, before hitting its current six-year low.

The reduction in exposure was broad-based, affecting almost all of the fund's major holdings in Bangladesh's blue-chip companies.

In BRAC Bank, its largest local holding, NBIM reduced its stake from 4.42% in 2025 to 3.66% by June 2026.

Similar trends were observed in other market leaders: its ownership in Square Pharmaceuticals dropped from 1.93% to 1.21%, while in City Bank, it fell from 3.55% to 2.95%.

Even telecommunications giant Grameenphone and multinational Marico Bangladesh saw their shares held by the Norwegian fund dwindle significantly, with Grameenphone's holding plunging to a mere 0.25%.

Market analysts suggest that this divestment is not necessarily a reflection of the fundamental performance of the individual companies, many of which remain highly profitable. Instead, the retreat is attributed to systemic and structural challenges within the Bangladeshi economy.

A senior analyst at Brummer & Partners Bangladesh, the firm that manages the fund's local portfolio, explained that the slowdown since 2020 is tied to a "perfect storm" of adverse factors. These include the long-term aftershocks of the Covid-19 pandemic, the controversial floor price mechanism that froze the market for extended periods, foreign exchange volatility, and a general climate of economic and geopolitical uncertainty caused by the Middle-east and Russia- Ukraine war.

The analyst noted that while the fund is a long-term equity investor, its risk assessment protocols mandate a reduction in exposure when macroeconomic indicators are unfavorable. Despite the sell-off, the fact that Norway's sovereign wealth fund continues to maintain nearly $96 million in Bangladesh suggests a lingering preference for the country's fundamentally strong and well-governed market leaders.

Analysts believe that if the government can stabilise the exchange rate and ensure a more transparent, market-driven environment, global giants like NBIM may eventually return with fresh capital.

The cautious stance in Bangladesh stands in stark contrast to the fund's overall global performance. Globally, the Government Pension Fund Global – which manages a staggering $2.3 trillion and holds stakes in over 10,000 companies across 67 countries – returned 9.4% in the first half of 2026. This performance outperformed its own benchmark index by 0.22 percentage points. The fund's total value grew by 1,416 billion kroner during the period, largely driven by its massive 72.1% allocation in global equities.

Dhaka stocks edged lower today (12 August) as investors booked profits following a recent rally, while caution over potential changes to margin lending rules, along with persistent macroeconomic and geopolitical uncertainties, weighed on market sentiment.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) fell 6 points to close at 5,897. The blue-chip DS30 index also declined 4 points to settle at 2,200.

Market breadth remained weak, with 231 issues declining against 119 advancing, while 35 remained unchanged. Turnover fell 4% to Tk1,073 crore, reflecting relatively subdued trading activity as investors stayed cautious.

In its daily market commentary, EBL Securities said the benchmark index failed to sustain its upward momentum as investors booked profits and adopted a cautious stance ahead of potential changes to margin rules. Persistent macroeconomic and geopolitical uncertainties also kept investors on the sidelines, the brokerage added.

Sheltech Brokerage attributed the day's trading primarily to profit-taking and cautious investor sentiment. The DSEX opened on strong buying interest, briefly touching an intraday high of 5,943.52 points, before the momentum faded as selling pressure emerged and intensified through the session. The index slid to an intraday low of 5,893 points. A late-session rebound attempt failed to gain sufficient traction to offset the selling pressure, leaving the benchmark to close near its day's low.

Although a late-session rebound attempt emerged, it lacked sufficient strength to offset the selling pressure, leaving the benchmark close to its day's low.

On the sectoral front, textile stocks dominated trading, accounting for 22.8% of total turnover. General insurance followed with 17.9%, while pharmaceuticals accounted for 8.8%.

Sectoral performance was mixed. Jute gained 2.4%, ceramic advanced 1.3% and textile rose 1.1%, emerging as the top-performing sectors.

Meanwhile, mutual funds recorded the highest correction, falling 2.2%. Life insurance declined 1.9% and financial institutions dropped 1.3%.

Metro Spinning was the day's top gainer, rising 9.37%, followed by Nurani Dyeing, which gained 9.09%. Tung Hai Knitting advanced 8.69%, Saiham Textile rose 7.80% and BD Lamps gained 6.76%.

Premier Leasing led the losing stocks, falling 8%. LR Global Mutual Fund One declined 6%, while Peoples Leasing dropped 5.26%. ICB Agrani Bank Mutual Fund 1 fell 5.20% and GSP Finance declined 4.76%.

The Chittagong Stock Exchange (CSE), however, ended higher. Its CSCX index gained 11 points to close at 9,645, while the CASPI index rose 37 points to 15,828. Trading activity on the CSE remained subdued, with turnover plunging 75% to Tk17.99 crore.

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.

Midas Financing PLC has slipped into financial insolvency as its net asset value (NAV) per share plunged further into negative territory to Tk24.87 by 30 June, with mounting losses pushing its liabilities above the value of its assets.

The non-bank financial institution disclosed the negative NAV in its half-yearly financial statements filed with the Dhaka Stock Exchange (DSE) today (11 August), underscoring the erosion of its net asset base.

Market insiders said a negative NAV poses a severe risk to investors as it means the company's liabilities exceed the value of its assets. In cases of severe insolvency, creditors typically have priority over shareholders in any liquidation, leaving shareholders at risk of receiving little or nothing.

Three years without dividends as losses mount

The company's financial position deteriorated sharply in the first half of 2026, when it incurred a consolidated net loss of Tk89 crore, translating into a loss per share of Tk6.21 for January-June.

The latest loss came after Midas Finance posted a staggering consolidated net loss of Tk337 crore in 2025, resulting in a loss per share of Tk23.40.

Its NAV per share, which had already fallen to negative Tk18.66 by the end of December 2025, thus deteriorated by another Tk6.21 in the first half of this year.

The company has also failed to declare any dividend for three consecutive years amid persistent losses, relegating its shares to the 'Z' category on the Dhaka bourse.

Midas Finance, listed on the DSE in 2002, has reached a point where accumulated losses have eroded its net asset base, leaving its liabilities in excess of its assets.

Shareholders typically rank behind creditors in insolvency or liquidation proceedings and may receive little or nothing, market insiders said.

The company's shares closed at Tk5.90 today, giving it a market capitalisation of Tk84.89 crore.

As of July 2026, sponsors and directors held 38.36% of the company's shares, while institutional and general investors collectively held more than 51%, leaving a significant portion of the exposure with outside shareholders.

Bangladesh’s push to achieve the Sustainable Development Goals faces severe headwinds from poor revenue mobilisation, sluggish private investment, and institutional weaknesses, speakers warned yesterday.

The country will require an estimated $421 billion between 2026 and 2030 to meet its SDG targets. With the government expected to cover just 14 percent, the private sector must shoulder the remaining $362 billion.
However, businesses continue to encounter regulatory delays, policy uncertainty, inadequate infrastructure, and unreliable data, while the tax-to-GDP ratio lingers at 7 percent to 8 percent against a 15 percent target.Speaking at a session, titled “Reforming Economy, Data Governance and SDGs (Goals 16 and 17)”, AHM Jahangir, additional secretary and wing chief of development effectiveness at the Economic Relations Division, stressed that establishing an enabling environment is vital to attract private capital.

He cited low tax collection, infrastructure deficits, and project implementation delays as core obstacles. The event was held on the second day of the conference “Navigating Five-Year Strategic Framework for Achieving SDGs: Policy, Partnership and Priorities.”

The event was organised by the General Economics Division of the Planning Ministry at the Bangladesh-China Friendship Conference Center.

Although Bangladesh has advanced on select SDG indicators, chronic governance issues persist.

Macroeconomic pressures continue to hamper growth. M Masrur Reaz, chairman and CEO of the Policy Exchange of Bangladesh, highlighted that declining employment growth since 2017-18 has been compounded by structural flaws and licensing delays.

Pointing to weak exports, a widening trade gap, and port inefficiencies, Abu Ahmed, chairman of the Investment Corporation of Bangladesh, insisted that economic recovery must precede SDG success.

“None of the SDG goals can be achieved if the economy does not move upward,” he stated, warning that raising taxes without boosting incomes will merely burden the public.Flawed statistics emerged as another major concern. Masrur, as well as Ruhul Kabir Rizvi and Zahed Ur Rahman, both advisers to the Prime Minister, collectively emphasised that inaccurate data distort policymaking and undermines sustainable growth.

Rizvi urged full transparency, stating, “Whatever the reality is, it should be presented accurately,” while noting that Bangladesh now trails several regional peers in SDG performance. Zahed recommended cross-checking GDP figures against electricity consumption, transport activity, and domestic investment to mirror actual economic conditions.

In response, Md Firoz Sarker, secretary of the Statistics and Informatics Division, affirmed that official statistics represent a strategic public good. The division is developing a microdata access policy alongside an advance release calendar for GDP, CPI, and employment metrics, adding that professional independence is essential for public trust.

Md Khaled Hassan, additional secretary of the Cabinet Division, noted that the homicide rate dropped from 1.94 to 1.5 per 100,000 people, fulfilling the 2025 SDG target.

Conversely, reporting rates for physical, psychological, or sexual violence remain critically low at 5.4 percent, far below the 30 percent goal for 2030. Fear, lack of awareness, high legal costs, and institutional distrust prevent victims from seeking justice.

Furthermore, public perception of administrative corruption remains unchanged, with 30 percent of citizens still viewing bribery as a problem in 2025 compared to 31 percent in 2019 -- though among businesses, this figure fell from 41 to 23 percent.

Addressing structural erosion, Zahed Ur Rahman attributed current economic troubles to 15 years of disastrous governance that damaged state institutions, including the judiciary and bureaucracy. Urging patience, he noted that institutional and economic reforms must progress together, alongside efforts to reconstitute the Information Commission and resolve gas shortages threatening industrial energy security.

Polish retailer LPP will continue sourcing from Bangladesh and help facilitate settlement talks over $40 million in disputed payments, rather than pay the amount itself, according to a statement issued yesterday.LPP maintains it is not legally obliged to make the payment, the company said in a written statement issued jointly with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
It is expected that the payment will be made gradually based on the position LPP shared with BGMEA, the association’s President Mahmud Hasan Khan told The Daily Star.He said the joint statement was issued to prevent misinterpretation of the matter.The payment dispute stems from unpaid dues owed by Russian buyer FES Retail to Bangladeshi garment factories and buying houses, under sales contracts guaranteed by LPP. Payments stopped following the outbreak of the Russia-Ukraine war in February 2022, and Bangladeshi suppliers were unable to recover the money despite repeated efforts.

Amid the dispute, LPP suspended new purchase orders and product development work in Bangladesh on July 30, citing a review of its sourcing strategy.

The Polish retailer said the review and suspension were intended to protect its local employees, ensure legal certainty, and maintain a stable, predictable and fair environment for business operations.

The company sources more than $700 million worth of garments annually from about 722 Bangladeshi companies, mostly sweater manufacturers. The suspension affected more than 350 factories currently doing business with the brand.

THE JOINT STATEMENT

BGMEA and LPP, in the statement, said the dispute should not adversely affect the wider Bangladeshi apparel sector.

They said the matter publicly under discussion involves alleged unpaid liabilities connected to invoices with FES Retail, which LPP said it is not legally obligated to pay.

They shared the intention to ensure legal certainty, employee safety and stable business promotion and cooperation in Bangladesh, as per the statement.

LPP said it settles its own obligations to its direct suppliers and business partners in Bangladesh on an ongoing basis.

BGMEA said it has taken note of LPP’s position that claims should be addressed to the parties legally responsible for them.

Both sides agreed that affected factories are in a difficult commercial situation. They also agreed that settlement talks should involve the party legally responsible for the payments, with LPP saying it would support dialogue without prejudice to its legal position.

BGMEA also said it will engage with relevant ministries, authorities and industry stakeholders to support a fair and orderly process, including protection of LPP officials and employees from undue harassment, pressure or unfounded proceedings.

Both organisations pledge to work together to ensure secure, stable, and uninterrupted business operations in Bangladesh while supporting a fair, transparent, and mutually acceptable resolution of the ongoing matter.

LABOUR LEADERS’ REACTION

Speaking to The Daily Star on the issue, Nazma Akter, president of Sammilito Garment Sramik Federation, alleged that international compliance standards were not followed in LPP’s sourcing from Bangladesh.

The company must pay local suppliers, she said.
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She said workers would ultimately suffer if LPP does not pay, since local exporters would be unable to pay wages.

Nazma also called for the governments of Bangladesh and Poland, banks in both countries, BGMEA, IndustriALL and global unions to engage on the issue for an amicable solution.

She also said Bangladesh and BGMEA should raise the matter with the European Union office in Dhaka, since Poland is an EU member state.

Md Towhidur Rahman, president of Bangladesh Apparels Workers Federation, echoed Akter’s concerns, telling The Daily Star that LPP’s conduct amounted to cheating local companies and needed swift resolution.

He said thousands of workers employed at LPP-affiliated factories would suffer if payment is delayed, adding that international compliance and ethical sourcing standards were not followed in this case.

The government yesterday signed lease agreements with two private business groups to reopen three long-closed state-owned jute mills, involving an investment of around Tk 619 crore and creating an opportunity for at least 11,629 jobs.

The agreements were signed between Bangladesh Jute Mills Corporation (BJMC), PRAN-RFL Group and HAMCO Group in the presence of Prime Minister Tarique Rahman at his office at the Secretariat, said PM’s Deputy Press Secretary Hasan Shiplu.

Under the agreements, PRAN-RFL Group will take over National Jute Mills Ltd in Sirajganj and Star Jute Mills Ltd in Khulna, while HAMCO Group will take over Platinum Jubilee Jute Mills Ltd in Khulna.

BJMC Chairman Brig Gen Md Kabir Uddin Sikder signed the agreements on behalf of the state-owned corporation. Aminur Rahman, group company secretary of PRAN-RFL Group, and ATM Mustafa, managing director of HAMCO Group, signed the agreements on behalf of their respective companies.

The three long-closed mills will be reopened under private management. Once operational, the mills are expected to create at least 11,629 jobs, with an investment of around Tk 619 crore and a combined potential annual turnover of about Tk 1,175 crore.

National Jute Mills in Raipur, Sirajganj, is planned to receive an investment of around Tk 157 crore. Around Tk 250 crore will be invested in Star Jute Mills in Digholia, Khulna.

Meanwhile, around Tk 212 crore is planned to be invested in Platinum Jubilee Jute Mills in Khalishpur, Khulna.

It was discussed at the programme that the government has decided to reopen 20 of the 25 mills under BJMC that remain closed under a lease-based private management system.

So far, leases for 14 mills have been completed and possession has been handed over to the lessees, while production has already resumed at nine of them.

Commerce, Industries and Textiles and Jute Minister Khandakar Abdul Muktadir; State Minister for Textiles and Jute Md Shariful Alam; and Textiles and Jute Secretary Sharf Uddin Ahmed Choudhury, along with senior officials of BJMC and the leaseholding companies, were also present.

Bangladesh's general inflation rate fell to 8.32% in July 2026, its lowest level in eight months, down from 9.16% in June, according to data released by the Bangladesh Bureau of Statistics (BBS).

The latest rate is the lowest since November 2025, when general inflation stood at 8.49%.

The point-to-point inflation rate was 8.55% in July last year.

The latest figure represents a decline of 0.84 percentage points in a month, with inflation easing in both food and non-food categories.

Food inflation fell sharply to 7.16% in July from 8.60% in June and 7.56% in July 2025.

The rate declined by 1.44 percentage points in a month, reaching its lowest level since October 2025, when food inflation stood at 7.36%.

The significant fall in food inflation contributed substantially to the decline in overall inflation.

Non-food inflation also eased to 9.28% in July from 9.61% in June and 9.38% in July last year.

The July rate was the lowest since March 2026, when non-food inflation stood at 9.09%.

Despite the decline, non-food inflation remained above 9% in July.

Overall, the easing of both food and non-food inflation brought Bangladesh's general inflation rate down significantly in July, with the national rate reaching its lowest level in eight months.

The country's premier bourse staged a robust rally today (11 August), with the benchmark index reclaiming the psychologically important 5,900-point mark on optimism over a potential relaxation of margin lending rules.

Investor sentiment got a lift after The Business Standard reported on the possible regulatory shift, triggering a wave of buying that added around Tk3,300 crore to the market capitalisation of the Dhaka Stock Exchange (DSE).

The DSEX index rose 58 points, or 1%, to close at 5,903. The blue-chip DS30 index also tracked the bullish trend, adding 18 points to finish at 2,204.

Turnover on the DSE jumped 23% to Tk1,115 crore, marking a return to four-figure territory for the first time in recent sessions.

Advancers dominated the session, with 242 issues gaining ground against 101 decliners, while 50 stocks remained unchanged.

Market insiders noted that the buying spree began from the opening bell as investors reacted to news that the Bangladesh Securities and Exchange Commission (BSEC) was considering more flexible margin financing regulations.

According to the daily market review by EBL Securities, the capital bourse extended its positive momentum for a second consecutive session as the anticipation of favourable regulatory changes strengthened investor confidence, driving sustained broad-based accumulation. Although the market faced mild profit-taking at intervals, the underlying buying pressure remained firm enough to uphold the upward trajectory until the closing bell.

Sheltech Brokerage Limited observed that the market initially opened with strong buying interest, lifting the DSEX to an intraday high of 5,910.64 points. While a bout of orderly profit-taking in the late morning briefly pulled the index down to a low of 5,844.87, momentum returned with vigor during the mid-session. This late-session surge allowed the benchmark to retain the bulk of its early gains and settle near the day's high.

A source within the BSEC confirmed to The Business Standard that the commission held a high-level meeting after the conclusion of the day's trading session. During the meeting, the regulator reportedly approved several key amendments to the margin loan framework. A pivotal change includes the restoration of the Price-to-Earnings (P/E) ratio as the primary criterion for margin eligibility in the banking and general insurance sectors, replacing the recently proposed Price-to-Book (P/B) ratio which had caused significant anxiety in the market. The source added that the final amendments also include a relaxation of forced-sell requirements and an increase in the overall P/E ratio ceiling for margin lending.

The rally was primarily driven by heavyweights and blue-chip scrips, with British American Tobacco (BAT) Bangladesh, Southeast Bank, IDLC Finance, LafargeHolcim Bangladesh, and IPDC Finance emerging as the day's top index pullers.

On the liquidity front, Beximco Limited remained the most traded stock, followed by Sharp Industries, Malek Spinning, ML Dyeing, and Saiham Textile.

Among individual scrips, NRBC Bank and Nurani Dyeing were the top performers, both hitting the 10% upper circuit. Other notable gainers included Tung Hai Knitting, GBB Power, and Sena Insurance.

On the flip side, Prime Finance and Peoples Leasing featured among the top losers, as investors shifted capital toward more fundamentally sound sectors.

The bullish sentiment extended to the Chittagong Stock Exchange (CSE), where the Selective Categories Index (CSCX) rose 95 points to 9,634, while the All Share Price Index (CASPI) surged 161 points to 15,790. Turnover at the port city bourse jumped 100% to Tk71 crore.

Near-record inventories, technological advances and the rise of key exporters such as Brazil and Russia have made the global food system more resilient to this year’s “super” El Nino than similar past events.

World farm production has ​outpaced consumption and population growth since the 1980s, the UN Food and Agriculture Organization (FAO) and analysts say.
The changes have been driven by higher-yielding crop varieties, greater use of fertiliser and ‌improved irrigation and crop protection, lifting yields of staples such as rice, wheat, corn and soybeans.“Even during drought conditions, better irrigation management and crop science mean we can still produce marketable yields,” said Andrew Whitelaw of Australian agricultural consultancy Episode 3.“The potential impact on global food supplies and prices exists, but our improved preparedness means the disruptions are much less severe than they would have been in previous decades.” Dryness brought by El Nino has already disrupted crop planting across large parts of Asia, ​including India, Southeast Asia and Australia, while shortages of fertiliser and diesel caused by the Iran war add to global food production risks.

India is battling a deficient monsoon season, while prospects of drier weather loom ​in Australia’s key wheat-growing regions and crops across Southeast Asia, including Indonesia and Thailand, are suffering from lack of moisture.The outlook could worsen, as an already strong El Nino will intensify in the fourth quarter and early next year, said Chris Hyde, a US-based meteorologist at satellite data and imagery firm SkyFi. “Expectations are that it will be one of the strongest on record, or the ​strongest the world has ever seen, and that means the big impact of dryness has yet to come.”A warming of ocean surface temperatures in the eastern and central Pacific, the El Nino weather phenomenon typically brings dryness ​to much of Asia and boosts rainfall across the Americas. In 1997-98 and 2015-16, severe El Nino episodes slashed production of key crops, fuelling food shortages, inflation and sapping economic growth.

Prices of sugar and palm oil jumped after drought cut output in those years in Brazil, India, Indonesia, Malaysia and Thailand, while tightening rice supplies prompted Southeast Asian producers to curb exports. Drought also reduced Australian wheat exports and forced southern African countries to boost imports of corn.

This time, near-record grain inventories, drought-tolerant seeds, better weather forecasting, ​precision agriculture, improved irrigation and the emergence of newer export powerhouses are poised to cushion much of the fallout.

In key crop producer India, sowing has kept broadly on track after overcoming a substantial initial lag, although ​rains in August and September will be crucial for maturity and grain formation, said Ashwini Bansod, vice president for commodities research at Phillip Capital India in Mumbai.

However, India, which accounts for 40 percent of global rice exports, has so much rice that ‌it is exhausting storage for stockpiles equivalent to more than a year of total global exports.

Nearly half the world’s ample global wheat stocks are held by China, the world’s top producer and consumer of the grain, furnishing a reserve that should help curb import demand if drought dents production in key supplier Australia.

Global palm oil stocks stand near historic highs, although Indonesia’s aggressive biodiesel programme is likely to trim inventories in coming months. Palm oil accounts for about 60 percent of global edible oil exports.

The emergence of new export hubs that barely existed a few decades ago has added significant supplies to global markets.

Brazil, for example, has become the world’s biggest soybean supplier with exports ​climbing more than 13-fold since 1997/98, while Russia’s wheat ​shipments jumped to 48 million tons last year from roughly 1 million tons in 1997/98. Researchers have evolved drought-tolerant corn hybrids widely adopted across Africa and the Americas since 2015, helping farmers maintain yields during spells of dryness and erratic rainfall.

Heat- and drought-tolerant wheat varieties have also gained ground in India and Australia, where advances in plant breeding have boosted resilience to water and heat stress, shaving ​the risk of sharp losses from adverse weather. In South and Southeast Asia, short-duration rice varieties help farmers cope with increasingly erratic monsoon rains.

Farmers are now equipped with ​a suite of digital tools barely available during the El Nino event of 1997-98, from satellite-based crop monitoring and seasonal climate forecasts to high-resolution soil moisture maps and GPS-guided fertiliser application that let them target inputs more efficiently.

“Governments have much better information than in the past and are able to prepare earlier,” FAO Chief Economist Maximo Torero told Reuters. “Our forecasting and market transparency have improved.”

Farmers are flocking to AI-powered advisory platforms that integrate weather forecasts, soil data and crop information to provide timely recommendations on planting dates, irrigation, fertiliser ​use and pest management.
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Still, wars in the Middle East and the Black Sea region temper some of that optimism, experts warned.

“Much will ​depend on how conditions evolve during the second half of 2026, particularly given the reduced use of agricultural inputs caused by the Strait of Hormuz crisis and higher fertiliser prices,” Torero said.

The Strait of Hormuz carried about a fifth of global crude oil and liquefied ​natural gas supplies before it was blockaded during the Iran war that began in February, disrupting global fuel and fertiliser supplies.

Leaders of the American Chamber of Commerce in Bangladesh (AmCham) urged the government to accelerate economic reforms and improve policy predictability as they seek to attract US$5.0 billion in fresh US investment over the next five years.

An AmCham delegation led by its president, Syed Mohammad Kamal, met Bangladesh Prime Minister Tarique Rahman at the Secretariat in Dhaka on Tuesday, where the business group reaffirmed its commitment to strengthening economic ties between Bangladesh and the United States.

The chamber noted that its member-companies have invested more than $5.0 billion in Bangladesh over the years and collectively contributed more than 20 per cent of the country's tax revenue.

The AmCham is prepared to help facilitate and mobilise an additional $5.0 billion in investment through existing members and prospective US companies.

The appeal comes as the government seeks to consolidate economic reforms and position Bangladesh as a more attractive destination for foreign capital following a period of political and economic uncertainty.

The American business body welcomed measures under the government's FY2026-27 reform package aimed at making investment easier, including time-bound approvals and licensing, implementation of a single-window system, digital tax and VAT administration, simplified customs procedures and improvements in the repatriation of capital and profits.

But the chamber stressed that reforms would need to be implemented effectively and supported by greater long-term policy certainty, particularly in sectors where foreign investors are considering major, long-term commitments.

"Predictability, efficient governance and constructive dialogue with the business community" would be essential for strengthening investor confidence," the AmCham delegation said.

The group also highlighted the growing importance of the digital economy, welcoming Bangladesh's enactment of the Personal Data Protection Act (PDPA) and National Data Governance Act (NDGA). It called for effective implementation, stronger cybersecurity, regulatory clarity and greater readiness for artificial intelligence.

They also described the US-Bangladesh Reciprocal Trade Agreement framework as an opportunity to move the bilateral relationship beyond traditional market access and towards a broader economic partnership.

Such a partnership, they said, could encompass technology and artificial intelligence, digital innovation, cloud computing and cybersecurity, healthcare and life sciences, renewable energy, advanced manufacturing and financial-sector modernisation.

The chamber proposed establishing a Digital Economy Advisory Forum or taskforce and a Public-Private Competitiveness Council bringing together government officials, local businesses, foreign investors and AmCham representatives.

The proposed bodies would identify regulatory bottlenecks, help implement reforms and provide feedback on measures affecting investment.

The organisation, which has worked to promote Bangladesh-US commercial relations since 1996, said it wanted to act not simply as an advocate for American businesses but as a strategic partner of the government.

It offered to provide investor intelligence and business feedback, connect Bangladesh with US corporate decision-makers and promote the country's investment opportunities and economic reforms internationally.

Rahman welcomed AmCham's continued engagement and said Bangladesh entered a new phase of economic transformation.

The prime minister said the government's priority is to "ensure effective implementation of ongoing reforms while strengthening investor confidence through predictable policies, efficient governance and dialogue with the private sector".

He also assured prospective foreign investors of the government's support and expressed a desire to deepen cooperation with AmCham.

The meeting was attended by Commerce Minister Khandakar Abdul Muktadir, the prime minister's adviser on posts, telecommunications and information technology, Rehan Asif Asad, and executive chairman of the Bangladesh Investment Development Authority Chowdhury Ashik Mahmud Bin Harun.

The AmCham delegation also included senior executives from MetLife Bangladesh, Philip Morris Bangladesh, Excelerate Energy Bangladesh, NATco Bangladesh, Avery Dennison, ShopUp and AmCham Bangladesh.

The chamber separately invited Rahman to attend the opening of the 30th US Trade Show, jointly organised by AmCham Bangladesh and the US embassy in Dhaka, as chief guest.