Oil prices pared gains on Tuesday after hitting their highest for more than ‌a week as signs of progress in talks between Oman and Iran over shipping through the Strait of Hormuz were weighed against ongoing disruption to Middle East energy flows.

Brent crude futures fell 21 cents, or 0.24 percent, to $87.51 a barrel by 1138 GMT. US West Texas Intermediate crude ​futures were down 4 cents, or 0.05 percent, at $82.09.
Both benchmarks hit their highest since July 31 earlier in the session, ​with Brent rising as high as $90.03 a barrel and WTI touching $84.61.Talks between Oman and Iran on the future of shipping in the Strait of Hormuz are now at an advanced stage, Qatar’s foreign ministry spokesperson said ​on Tuesday.

“Any signs of de-escalation or any signs of a deal are good news for risk assets and bad for oil, ​obviously. But it’s all talk at the moment. It’s all headlines. There’s no meaningful progress,” said Fawad Razaqzada, analyst at City Index and FOREX.com.

Both contracts had jumped more than 5 percent on Monday after US President Donald Trump responded to Iran’s conditions for a peace deal with his own ​demands that Iran pay compensation for people killed in wars, attacks and protests, which is likely to complicate efforts to ​reopen the Strait of Hormuz.

“I don’t see oil going below $80 any time soon, unless there’s a surprise announcement of a deal that reopens ‌the Strait ⁠of Hormuz, because the oil market is tightening,” Razaqzada added.

GEOPOLITICAL RISK CONTINUE

Shipping data showed that traffic through the Strait of Hormuz dropped to six vessels on Monday, compared with a 10-day average of about 11 vessels.

In a note on Monday, Barclays analysts said that crude oil and refined product net exports through the Strait of Hormuz averaged 3 million barrels per day (bpd) ​in the week ending August ​7, down from 4.4 million ⁠bpd the previous week.

Before the Iran conflict began in late February, about a fifth of global daily oil and liquefied natural gas supplies passed through the Strait of Hormuz.

A cargo ship ​was attacked on Tuesday by Yemen’s Iran-aligned Houthis in the Bab el-Mandeb Strait, killing three ​crew members, said ⁠two Yemeni coast guard sources and two military officials in the government.

“The chokehold risk around both the Strait of Hormuz and the Bab el-Mandeb remains highly significant. Even intermittent restrictions or the threat of further incidents keep insurance costs elevated and force longer ⁠shipping routes ... ​hence energy flows look likely to stay constrained near term,” said Tim ​Waterer, chief market analyst at KCM Trade.

Elsewhere, the Ukrainian military said on Tuesday that it had attacked an oil refinery in Orsk, the second-largest city in Russia’s ​Orenburg region and an important industrial hub.

Prime Minister Tarique Rahman today (11 August) assured local entrepreneurs of necessary government support to encourage investment and create employment as part of efforts to improve people's socio-economic conditions and strengthen the country's economy.

"Alongside political rights, it is essential to ensure the economic empowerment of the people. The government will provide all necessary policy support to encourage local entrepreneurs to invest and create employment," he said.

The prime minister made the remarks while speaking at an agreement-signing ceremony at the secretariat for leasing out three closed state-owned jute mills to two private business groups.

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

He said a state becomes strong when the economic capacity of the people is ensured.

Tarique said, "No state can become strong by keeping the common people in poverty or silencing their mouths. They want to build a country where everyone will get a better life, and it is his government's main goal and objective."

Promising continued government support for local entrepreneurs, Tarique Rahman said helping them invest and create jobs will improve people's livelihoods as well as the overall economic situation.

"If we can support the entrepreneurs, it will create employment and ensure people's livelihoods on the one hand, while it will improve the overall economic situation on the other hand," he said.

The prime minister said the government wants to build a country where everyone can enjoy a better life, describing it as the government's main goal and objective.

Emphasising the importance of domestic investment alongside foreign investment, he said the government welcomes foreign investment but also needs to encourage local investors and entrepreneurs.

Tarique also said the government will provide whatever policy support they need for their business and investment.

Noting that the government's policies are aimed at creating opportunities for people from all walks of life, Tarique Rahman said the government has been working to build a nice and strong country with cooperation from everyone.

He thanked the two business groups – PRAN-RFL Group and HAMKO Group – for taking responsibility for the three jute mills.

The prime minister expressed optimism that the companies will succeed with their new investments and contribute to the country's economy by creating employment opportunities.

The government signed lease agreements to reopen three long-closed state-owned jute mills under private management, with an estimated investment of Tk 619 crore and the potential to create at least 11,629 jobs.

Prime Minister Tarique Rahman today (11 August) assured local entrepreneurs of necessary government support to encourage investment and create employment as part of efforts to improve people's socio-economic conditions and strengthen the country's economy.

"Alongside political rights, it is essential to ensure the economic empowerment of the people. The government will provide all necessary policy support to encourage local entrepreneurs to invest and create employment," he said.

The prime minister made the remarks while speaking at an agreement-signing ceremony at the secretariat for leasing out three closed state-owned jute mills to two private business groups.

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

He said a state becomes strong when the economic capacity of the people is ensured.

Tarique said, "No state can become strong by keeping the common people in poverty or silencing their mouths. They want to build a country where everyone will get a better life, and it is his government's main goal and objective."

Promising continued government support for local entrepreneurs, Tarique Rahman said helping them invest and create jobs will improve people's livelihoods as well as the overall economic situation.

"If we can support the entrepreneurs, it will create employment and ensure people's livelihoods on the one hand, while it will improve the overall economic situation on the other hand," he said.

The prime minister said the government wants to build a country where everyone can enjoy a better life, describing it as the government's main goal and objective.

Emphasising the importance of domestic investment alongside foreign investment, he said the government welcomes foreign investment but also needs to encourage local investors and entrepreneurs.

Tarique also said the government will provide whatever policy support they need for their business and investment.

Noting that the government's policies are aimed at creating opportunities for people from all walks of life, Tarique Rahman said the government has been working to build a nice and strong country with cooperation from everyone.

He thanked the two business groups – PRAN-RFL Group and HAMKO Group – for taking responsibility for the three jute mills.

The prime minister expressed optimism that the companies will succeed with their new investments and contribute to the country's economy by creating employment opportunities.

The government signed lease agreements to reopen three long-closed state-owned jute mills under private management, with an estimated investment of Tk 619 crore and the potential to create at least 11,629 jobs.

Bangladesh must advance implementation of the Sustainable Development Goals (SDGs) and its graduation from the least developed country (LDC) category simultaneously, said Irene Khan, Bangladesh's newly appointed permanent representative to the United Nations in New York.

Speaking at a session titled "Role of Development Partners in Implementing the Five-Year Strategic Framework for SDGs and Reforms" at a national conference in Dhaka, she said the two processes offered a rare opportunity to accelerate long-pending economic and institutional reforms.

"SDG implementation and the LDC graduation process are closely interconnected. Bangladesh now has an opportunity that has rarely come in the country's history. By using this opportunity to implement necessary reforms quickly, it is possible to bring about major changes in the economy," she said.Bangladesh is scheduled to graduate from the LDC category in 2026, but the government has sought an extension to ensure a successful, sustainable and lasting transition. The UN envoy said the extension request and the final phase of SDG implementation would put additional pressure on the government to implement reforms and accelerate development, creating a "dual incentive".

The LDC roadmap calls for strengthening the financial sector, improving the investment climate, increasing domestic revenue mobilisation, facilitating trade negotiations and pursuing new trade agreements. Bangladesh must make significant progress in these areas over the next three years while accelerating SDG implementation, she said.

Bangladesh must work faster in the final phase of SDG implementation as it has already lost considerable time, she said. While the country made significant progress under the Millennium Development Goals, the SDGs are harder because their targets are broader and deeply interconnected.

Despite global challenges, Bangladesh has no shortage of strength, creativity and innovation among its people, she said, urging more effective use of these capabilities.

She also called for stronger international development-partner support and stressed domestic partnerships, particularly the role of civil society and local communities in grassroots development programmes.

SM Abdul-Awal, principal coordinator for SDGs at the Prime Minister's Office, called for greater development-partner support to accelerate SDG progress by 2030, including concessional financing, faster loan disbursement and increased technical assistance. He also stressed stronger partnerships and adequate resources for marginalised and vulnerable groups.

The two simultaneous transitions present both a major challenge and an opportunity for economic and institutional reform, making timely reforms and development-partner support crucial, stakeholders said.

Commercial banks are discussing a Tk1,000 crore financing package with the Bangladesh Bank to provide young entrepreneurs with loans at 4-6% interest, with collateral-free financing of up to Tk10 lakh under the preliminary plan.

Association of Bankers, Bangladesh (ABB) Chairman and City Bank Managing Director Mashrur Arefin disclosed the proposal after a meeting with the Bangladesh Bank governor today (11 August). Top representatives of around a dozen banks and relevant central bank officials were present in the meeting.

Arefin said the package, which is still at the draft stage, aims to help young people who want to start or expand businesses but lack sufficient capital.

Commercial banks could provide the loans using Bangladesh Bank's refinancing facility. The loan amount, interest rate, eligibility criteria and other details have yet to be finalised. Discussions are also underway on whether the scheme will cover only new entrepreneurs or those who have been operating businesses for at least a year.

"We do not want to make a rigid distinction between trading and manufacturing," Arefin said, adding that the programme could cover genuine entrepreneurs involved in manufacturing, trading, fisheries, home-based food production and handicrafts.

Successful entrepreneurs may qualify for grants

The programme could also provide grants alongside loans. Under the preliminary proposal, entrepreneurs who receive up to Tk10 lakh in collateral-free financing and demonstrate good business performance and repayment capacity could later receive grants of up to another Tk10 lakh.

The grants could be disbursed in phases based on business performance, with part of banks' corporate social responsibility (CSR) funds potentially used for the purpose.

Arefin said the proposed scheme would fall between conventional startup funding and traditional bank financing, targeting young people whose businesses are held back by a lack of capital.

The package size has not been finalised, but a Tk1,000 crore package could finance around 10,000 entrepreneurs with Tk10 lakh each.

Arefin said conventional bank loans can carry interest rates of 13% or more, while NGO financing can be even more expensive, making 4-6% loans a significant opportunity for young entrepreneurs.

Banks to identify entrepreneurs locally

The programme is expected to reach entrepreneurs down to the upazila level, with local bank branch managers playing a key role in identifying potential borrowers.

Upazila-level committees could scrutinise applications, while banks could be assigned specific upazilas to identify entrepreneurs, process applications and disburse loans.

Arefin said selecting genuine entrepreneurs would be crucial to preventing the misuse of funds through lobbying or other influence.

"Some loans may turn bad, and some businesses may fail. But if 5,000 young people receive financing and even 100 become successful entrepreneurs, it could create a major wave of new entrepreneurship across the country," he said.

Arefin said Bangladesh Bank SME Department is working on the proposal, adding that discussions are focused on ensuring funds reach the right sectors and genuine entrepreneurs.

Banglalink has received a Payment Service Provider (PSP) licence from Bangladesh Bank, paving the way for the telecom operator to enter the country's digital payments market with its new service "Mukto Pay".

The licence was issued today (11 August), according to a press release from the leading digital operator.

Mukto Pay is a fully owned Banglalink service that will offer digital payment solutions, including money transfers, merchant and e-commerce payments, utility and government bill payments, salary and other disbursements, as well as other approved payment services.

Banglalink said the service is aimed at making everyday digital transactions simpler, more secure and accessible, particularly for individuals, micro-merchants, and small businesses that are unbanked or underserved by formal financial services.

It said Mukto Pay will leverage Banglalink's nationwide connectivity, customer reach and digital ecosystem to broaden access to digital financial services.

According to Banglalink, the PSP licence is part of the broader strategic vision of the company and its parent, VEON, to invest in and expand digital financial services in Bangladesh.

The milestone marks a significant step in Banglalink's expansion into digital financial services, supporting the transformation of Bangladesh's financial ecosystem, accelerating the country's transition towards a cashless society, and contributing to its ambition to become a $1 trillion economy by 2034.

The move also marks another step in Banglalink's transformation from a telecommunications company into a digital operator, extending its services beyond connectivity into digital and financial services.

Johan Buse, chief executive officer of Banglalink, said, "Bangladesh's journey towards building a cashless society and becoming a trillion-dollar economy will require greater financial inclusion and a digital ecosystem that enables more people to participate in the country's growth. Mukto Pay is an important step in that direction.

"By combining Banglalink's nationwide reach and deep understanding of local customers with VEON's global digital expertise, we aim to make digital payments simpler, more accessible and more relevant to people's everyday lives."

"This licence strengthens our ambition to invest further in digital financial services and contribute to building a more inclusive, cashless and digitally empowered Bangladesh, making a better life for all," he said.

Meanwhile, VEON is also pursuing opportunities in digital banking and has applied for a digital bank licence, according to the press release.

With Mukto Pay, the number of licenced companies or brands operating as payment service providers in the country has risen to 10.

The other nine are iPay Systems Ltd, D Money Bangladesh Ltd, Recursion FinTech Ltd, Green & Red Technologies Ltd, Progoti Systems Ltd, ABG Technologies Limited, Digital Payments Limited, Sheba Fintech Limited, and Shamadhan Services Limited.

The Bangladesh Securities and Exchange Commission (BSEC) has approved revised margin lending rules, setting a maximum price-to-earnings (P/E) ratio of 40 for margin-eligible shares across all sectors except life insurance.

People familiar with the matter said the revised rules were approved at the commission's regular meeting today (11 August) and are expected to be sent to the Bangladesh Government Press (BG Press) on 13 August for gazette publication.

The rule-making team has been given two days to finalise the regulations before publication, according to the sources. However, BSEC Executive Director and spokesperson Abul Kalam told TBS he was unaware of the matter.

Under the revised framework, the P/E ratio will be the key valuation criterion for determining margin loan eligibility for banks, non-life insurers and companies in other sectors. The condition will not apply to life insurers.

The rules introduce a trailing P/E ratio, calculated using the current share price against earnings per share (EPS) generated over the previous 12 months. The ratio will be updated when companies publish new quarterly financial results.

The revised framework drops the price-to-book (P/B) ratio as an eligibility criterion for banks and non-life insurers. The earlier draft had proposed maximum P/B ratios of 3 for banks and 1 for insurance companies.

The draft rules had triggered price adjustments in several margin-eligible stocks, with market participants saying the impact spread to the broader market.

The revised rules also give investors more room before their securities can be liquidated. A margin financier must issue prior notice if an investor's equity falls below 50%. If equity subsequently falls below 25%, the financier can liquidate the securities without prior notice.

The earlier draft had proposed a margin call below 70%, followed by a three-trading-day window to restore the required equity. It also allowed liquidation without prior notice once equity fell below 50%.

Despite the relaxed conditions, shares of Z, N and G category companies, as well as securities listed on the SME, ATB and OTC platforms, will remain ineligible for margin financing. Only A and B category shares on the main board will qualify.

For general securities, the margin financing ratio will be 1:1, allowing investors to borrow an amount equivalent to their own equity. Life insurers will have a separate margin financing arrangement.

The revised framework is expected to improve liquidity and investors' purchasing power, although greater leverage could also increase speculative trading and forced-selling risks during market downturns.

At the height of the 2025 reciprocal tariff hikes, many US apparel buyers pressured Bangladeshi garment exporters to share the burden, forcing suppliers to cut prices or offer discounts to keep orders flowing.

Many exporters agreed, effectively absorbing part of the tariff burden to protect their business with major US buyers.

Now, the equation has changed.

Following the US Supreme Court's February ruling declaring the tariffs illegal, major US buyers have begun receiving refunds for the duties they paid. The Trump administration has so far issued around $100 billion in tariff refunds out of the $166 billion it had collected under the reciprocal tariff regime.

This has left Bangladeshi exporters asking: if buyers are getting their tariff money back, what happens to the suppliers who helped bear the cost?

Exporters say they are now seeking a share of the refunds or, at the very least, some form of compensation through their continued business relationships with US buyers.

Rakibul Alam Chowdhury, managing director of HKC Apparels, said, "At that time, we shared one-third of the additional cost with buyers, and in some cases, up to half. Now that the money has been refunded, we've started communicating with buyers."

"The buyers are saying they will refund the money," he told The Business Standard.

HKC Apparels is among the Chattogram-based garment manufacturers affected by the tariff. About 90% of the company's exports go to the US market.

Representatives of US buyers also believe suppliers should receive compensation.

However, they said direct refunds may be difficult. Instead, the losses could be partially offset through higher prices in subsequent orders, increased order volumes, or concessions on costs such as air shipments and discounts when such situations arise for local suppliers.

They said any such arrangement would require negotiation between buyers and suppliers.

However, neither of the two major apparel industry associations has data on how much of the tariff-related cost burden was actually absorbed by Bangladeshi exporters.

Trump admin refunds $100b

According to an Al Jazeera report published on 6 August, the Trump administration has refunded about $100 billion in tariffs since the US Supreme Court ruled against its use of emergency powers to impose duties on dozens of trading partners.

The administration had collected about $166 billion from US importers before the Supreme Court struck down a large part of Trump's tariff regime in February.

The Tax Foundation, a Washington-based tax policy think tank, estimated that the tariffs cost the average US household an additional $1,000 in 2025.

Compensation in some form

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said buyers now should compensate suppliers for the price cuts made to offset the reciprocal tariff.

"The amount deducted from suppliers should be returned to them in some form from the refunded funds," he told The Business Standard.

The managing director of a Dhaka-based garment factory, speaking on condition of anonymity, told TBS that a US buyer had asked the company to reduce its price by 5%, but it agreed to a 1% cut, costing the company about $25,000.

"However, we won't ask them to return the money. Instead, we'll ask them to increase the volume of business they do with us. Higher business volumes can help us recover the financial loss," he said.

A BGMEA leader, speaking on condition of anonymity, said buyers did not put equal pressure on all Bangladeshi exporters to absorb the additional tariff burden.

"Some buyers did not put any pressure on exporters at all. So, considering the overall situation, the amount absorbed by exporters may have averaged around 10%," he said.

He added that exporters that shipped under the Landed Duty Paid (LDP) arrangement, rather than Free on Board, had to absorb the additional tariff burden. Under LDP terms, the supplier is responsible for customs duties and tariffs imposed by the importing country.

Not all exporters, however, expect to recover the money they had conceded to buyers.

Rafiqul Anam Chowdhury, managing director of Chattogram-based RMG manufacturer Meadow Apparel, told TBS, "We also had to offer price concessions at the time. But I don't think we will be able to recover that money in any way."

LDP exporters can seek tariff refunds with legal help

Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said he was not aware whether exporters were negotiating with buyers to recover the money they conceded tariffs.

"If anyone is negotiating, they are doing so independently. Those who had absorbed a significant share of the cost may negotiate with their buyers. We believe the cost can be recovered through increased business, even if it is not returned directly," he said.

Babu further mentioned that exporters who had shipped merchandise under LDP may be able to claim the tariff payments with legal assistance. "Those that exported under LDP terms can hire lawyers and claim the money. Lawyers from the US recently came and discussed the matter with us," he said.

The association does not have precise data on the share of Bangladesh's US exports shipped under LDP terms. Babu said, however, that it is likely to be less than 10%, with more than 90% shipped under FOB terms.

Buyer reps also believe in compensation

Some representatives of US buyers sourcing from Bangladesh believe suppliers should be compensated in some form if they had absorbed part of the additional costs caused by the tariffs and buyers receive refunds.

The country manager of a US brand's Dhaka office, speaking on condition of anonymity, said, "If a supplier absorbed part of the additional cost because of the tariffs, they should receive a share of the refund now."

However, he said that even if a brand wanted to return the money, Bangladesh Bank's existing policies could make it difficult to transfer the funds directly to suppliers.

"In that case, a better option could be to adjust prices upward in subsequent orders through mutual agreement," he said. "The amount could also be offset by offering concessions if a shipment from the relevant Bangladeshi supplier needs to be sent by air, or if a situation arises where the supplier faces a penalty."

On 2 April 2025, the US announced steep reciprocal tariffs based largely on trade imbalances. Bangladesh initially faced an additional tariff of over 37%. A 10% tariff took effect on 10 April and remained until early August. The rate was later raised to 35%, then revised to 20% and finally 19% for Bangladeshi products.

Bangladeshi goods already faced a general US tariff of around 15%, making the reciprocal levy an additional burden. Rates varied by country.

Although US importers formally pay tariffs, Bangladeshi exporters said some US buyers asked suppliers to share the burden. Some exporters agreed, cutting prices to retain orders and meet wage and benefit obligations.

The government has decided to form a joint committee comprising the Chattogram Port Authority (CPA) and customs authorities to remove trade barriers, expedite cargo clearance, and reduce business costs, Finance Minister Amir Khosru Mahmud Chowdhury said today (11 August).

He announced the decision while briefing journalists after a high-level meeting with senior port and customs officials at Chattogram Port. The committee, he said, will work to improve coordination between the two agencies and address operational problems that delay import-export activities.

The government's priority is to facilitate trade, boost exports and industrialisation, and strengthen the economy by removing the regulatory and procedural barriers faced by businesses, Khosru said.

"We are taking steps towards deregulation to remove the obstacles businesses have faced due to various regulations and complexities," he said.

The minister said the meeting identified specific problems between the port and customs authorities and decisions were taken to resolve them.

Nothing has been left open-ended. Each decision has been given a specific timeframe for implementation," he said.

The proposed joint committee will also address emerging problems between the two agencies and work towards resolving them promptly, he added.

Khosru said delays in port operations and customs clearance increase the cost of doing business, eventually pushing up prices for consumers.

"If cargo can be cleared and exports processed in less time, businesses will have lower operating costs. The benefit will ultimately reach consumers as well," he said.

Faster and more cost-effective import-export procedures would also improve Bangladesh's competitiveness in international markets, according to the minister.

"If import-export processes become faster and more cost-effective, Bangladesh's competitiveness in the international market will increase and the path towards building a trillion-dollar economy by 2034 will become easier," he said.

Asked about the operation of the New Mooring Container Terminal (NCT), Khosru said the key issue was not whether the terminal would be operated by the port authority or a particular entity, but whether its operator would work in the national interest.

"Whether the port is operated by domestic or foreign entities is not the main issue. Whoever operates the port must work under the same rules, protecting the interests of the country's economy, people and businesses," he said.

On reopening closed factories, Khosru said the government's decisions were aimed at creating an environment where industries could operate without unnecessary obstacles and at lower costs.

Asked about customs officials' seizure of illegal goods and allegations of irregularities, he said the government would take a strict stance against corruption.

"There will be no scope for corruption, nepotism or patronage under the current government. No matter how powerful those involved in irregularities are, they will not receive any concession," he said.

The minister also said the Asian Development Bank (ADB) vice-president was visiting Chattogram and that the multilateral lender had major development plans for the city.

Chattogram should be developed not merely as a logistics hub but as a leading centre of broader economic development, he said.

A meeting involving the ADB and relevant stakeholders was held yesterday to discuss about overall plan to develop Chattogram.

Bangladesh Bank has waived inter-bank charges on all transactions made through the Bangla QR code system, a move aimed at expanding digital payments and encouraging small and marginal businesses to adopt cashless transactions.

The central bank has reduced the Interchange Reimbursement Fee, the charge paid between banks for processing a transaction, to zero for Bangla QR payments. As a result, neither the card-issuing institution nor the merchant's payment-receiving institution, known as the acquiring institution, will be able to impose any fee or service charge on such transactions.

Bangladesh Bank issued a circular on the matter today (10 August), directing all banks, mobile financial services providers, payment service providers and payment system operators to comply with the new instruction.

Earlier, on 1 July, the central bank had set a minimum Merchant Discount Rate of 1%, including VAT, for merchant payments made through Bangla QR. However, the additional charge failed to have the intended impact on market transactions and stakeholders subsequently called for its withdrawal.

In a separate circular issued today, Bangladesh Bank also announced incentives for sellers of goods and service providers for NPSB transactions made at merchant points through Bangla QR, with the incentive applicable to each transaction of up to Tk2,000.

Under the arrangement, the acquiring institution will receive an incentive equivalent to 0.10% of the transaction amount, or Tk1 per Tk1,000, while the issuing institution will receive 0.20%, or Tk2 per Tk1,000. The incentives will be disbursed monthly.

The directive will come into effect for all Bangla QR transactions from 1 October 2026.

In practical terms, if a customer pays Tk1,000 at a shop by scanning a Bangla QR code, neither the customer's bank nor the merchant's bank will deduct any amount as a transaction charge.

Bangladesh Bank said the new facilities were introduced to expand the digital payment system across the country and encourage small and marginal businesses to adopt digital transactions.

The circular also sets out safeguards to prevent misuse of the incentive scheme. Transactions cannot be deliberately split into smaller amounts to qualify for incentives. No incentive will be provided for failed, cancelled, reversed, refunded, charged-back or disputed transactions.

If a merchant records an unusually high number or unusual pattern of transactions, the relevant acquiring institution must monitor and verify the activity. Institutions must also take measures to prevent misuse of the system, including artificial transaction-splitting and cash-out schemes.

Bangladesh Bank has reserved the right to verify and audit records relating to transactions, merchants, settlements and incentive payments. Any incentive paid in error or in excess will either be recovered or adjusted against future incentive payments.

The central bank said the initiative is intended to simplify merchant payments, bring small and marginal businesses into the digital payments system and help build a secure, affordable and interoperable digital payment network.

Bangladesh managed to stem the downturn in its tax-to-GDP ratio last fiscal year with the proportion having edged up by 0.08-percentage point notwithstanding sluggish investment and economic activity, and waning purchasing power of both individuals and businesses.

As per the provisional revenue-mobilisation data from the National Board of Revenue (NBR), the tax-to-GDP ratio stood at 6.78 per cent in FY2025-26, compared to 6.70 per cent a year earlier.

However, the ratio slipped last year from 7.20 per cent in FY24.

The calculation is based only on the NBR's provisional tax-collection figures. The ratio may change once data on non-tax revenue and revenue collected by agencies other than the NBR are incorporated.

The NBR accounts for nearly 90 per cent of Bangladesh's domestic revenue mobilisation meant for financing the national budget.

It collected Tk 4.15 trillion in revenue in FY2025-26, registering a Tk 880-billion shortfall against its revised target of Tk 5.03 trillion.

The shortfall against the original target of Tk 4.99 trillion stood at Tk 840 billion.

Officials say repeated setting of "unrealistic revenue targets" is putting pressure on tax officials and demoralising them when they fail to get to the goals.

A senior NBR official has said revenue mobilisation largely depends on economic activity, particularly development expenditure under the Annual Development Programme (ADP).

But the latest ADP-implementation data show Bangladesh recorded one of its lowest implementation rates last year-only 67.52 per cent of the annual allocation spent.

"Unless overall economic activity normalises, revenue collection will not pick up to the expected level," the NBR official told The Financial Express.

Senior Research Director of the Centre for Policy Dialogue (CPD) Towfiqul Islam Khan thinks higher international prices of commodities, including fuels, helped generate additional revenue during the year.

He also points to disruption during the final quarter of FY2024-25 amid protests within the NBR over the proposed bifurcation of the revenue authority.

"However, the process or any systematic changes are missing, and the NBR is running at its traditional pace, posing challenges to meeting revenue targets in the future too," he says.

Administrative loopholes must be addressed, he suggests, adding that it is unrealistic to expect comprehensive reform within a year, but the government needs to start the process immediately.

He also suggests the government reduce expenditure and prioritise spending, given the country's persistently low tax-to-GDP ratio.

Economists say the marginal increase in the ratio is not significant, particularly as the appetite for domestic revenue is increasing amid a decline in foreign funding sources.

According to provisional NBR data, revenue collection increased by around Tk 450 billion from the previous fiscal year despite continued economic challenges.

Overall revenue collection grew by 12 per cent in FY2025-26.

The NBR, however, once again missed its revenue target, continuing a pattern seen in previous years.

Officials say weak development expenditure had a significant impact on domestic revenue mobilisation as a substantial portion of tax revenue comes from source taxes generated through government development activities.

At the same time, private-sector investment remained subdued, reflecting weak demand for credits and a cautious business environment.

Of the total NBR collection last fiscal year, VAT generated Tk 1.57 trillion, income tax Tk 1.45 trillion, and customs duty and import taxes Tk 1.12 trillion.

The modest improvement in the tax-to-GDP ratio, therefore, offers little comfort to policymakers, economists say, as Bangladesh's fiscal needs to continue to rise while the capacity to mobilise domestic resources remains constrained.

Immediate-past NBR chairman Abdur Rahman Khan said it was challenging to mobilise higher revenue last year than the previous one amid economic hurdles.

"The government should consider providing sufficient budget and logistics for revenue mobilisation so that taxmen can work smoothly," he suggests.

For anyone in Europe who still thought climate change was a problem for future generations, this summer’s sweltering heatwaves have brought home the reality that its costly and life-altering economic impacts have already arrived.

Record heat and droughts this summer - which scientists say are exacerbated by global warming - have wreaked havoc in power production, shipping and public health systems, while this wildfire season is on track to be Europe’s biggest ever.

Together, the hit to the region’s economy can already be measured in the hundreds of billions of euros, economists and academics estimate.

But they warn this is just the beginning, as costs are set to rise faster than temperatures.

Climate is changing more rapidly in Europe than on any other continent and the damage is already stretching public finances, setting off wild swings in inflation, redrawing the tourism map, and forcing the bloc to rethink how power is produced and how goods are transported.

“What makes 2026 particularly worrying from an economic perspective is that there are multiple episodes of extreme events,” said University of Mannheim economist Sehrish Usman.

“Take heatwaves, droughts, wildfires... these events are taking place at the same time and mostly in the same regions, compounding their impact,” she said.

Temperatures hit records in June and July, and the economic damage will likely exceed all previous marks, economists say.

Traffic on the Rhine and the Danube rivers, key cargo arteries, is severely limited because of low water levels, more than a half dozen nuclear generators have shut or curtailed production due to cooling difficulties.

Agricultural yield estimates have been cut with crops harvested late, such as maize and sunflower, suffering a 6-7 percent loss already in July. Heat curtails human productivity and has already claimed tens of thousands of lives, with Germany alone reporting more than 10,000 heat-related deaths.

Meanwhile, the costs of the emergency response, like fighting fires or curtailing power use, further stretch budgets.

ING estimates that the halt of traffic on the Rhine alone will lower the GDP of Germany, the world’s third-largest economy, by 0.3 percentage points this year, while Hungary’s MBH Bank sees a 0.1 percentage point GDP hit for every week the country’s largest nuclear generator is offline.

Allianz, the German insurer, estimates the two-week June heatwave alone will cut the GDP of Europe by 0.3 percentage points,

and climate change will shave 5-7 percent off growth by 2030 for the most exposed economies like Spain, France and Italy.

“The total bill for this year will be much larger,” said Hazem Krichene, an economist at Allianz.

“This figure doesn’t account for the fires, droughts, different flood events or the expected El Niño.”

Given that the euro zone is expected to grow just 1 percent this year, the hit is sizable.

Yet Usman says the full extent of the economic damage will only be felt several years down the line.

“You’d expect the damage to be largest in the year an extreme event happens and then to fade but we find the opposite,” Usman said.

“The economic impact grows over the following years because the extreme weather set off a chain of slow economic consequences.”

Southern Europe could take the biggest hit as temperature spikes are the largest there, cutting tourism income, exacerbating crop failures and inducing outward migration.

“Can you see tourists marching through southern Italy or Spain in 45 degrees? I can’t. So, I think the nature of tourism will change,” ING economist Carsten Brzeski said.

The south may get more year-round tourists but summer peaks will drop as vacationers move north, hitting the southern hospitality industry, Brzeski argued.

The south will also take a bigger food price hit from extreme weather, complicating life for the European Central Bank, which is already struggling to keep inflation at target.

“You see bigger effects of extreme temperatures on food prices in places that are already hotter, so if you’re in Southern Europe, you’ll see a bigger effect,” said Maximilian Kotz, a researcher at the Barcelona Supercomputing Center.

Extreme heat in 2022 lifted euro zone inflation by 0.34 percentage points via higher food prices, with the south taking a disproportionate hit, Kotz estimated.

Meanwhile, a halt in river transport is making it harder for fuel to reach parts of Europe, widening regional price differences. “The fiscal consequences fall most heavily on the economies least able to absorb them,” Allianz said in a research note.

Reductions in annual tax revenue from lost output could reach 1.8 percent in France, 1.3 percent in Italy and Spain as progressive tax systems mean revenues fall faster than output, it estimates.

Business profit margins will also decline, depressing investment and exacerbating the economic loss.

Costs meanwhile surge, both because governments have to fund the emergency response and must invest, such as in future-proofing power generation or transportation routes.

“A key concern is that countries still rely far too much on ad hoc emergency response, which is both expensive and also often quite inefficient,” said Heather Grabbe, a senior fellow at the Bruegel think tank.

But investors may push back if governments try to spend more.

Debt levels are already high - especially in France and Italy - and countries need to invest in defence and the green energy transition.

The dilemma could draw in the ECB, which bought up trillions of euros worth of countries’ debt in the past decade to keep borrowing costs depressed when inflation was too low.

“With such a long list of spending needs, the trend will be towards higher government debt,” ING’s Brzeski said.

“This will then mean pressure on the ECB to step in and do more quantitative easing, if there is a sudden selloff in bond markets.”

Bangladesh's gross foreign exchange reserves stood at $32.15 billion under the International Monetary Fund's BPM6 methodology as of today (10 August), according to the latest Bangladesh Bank data.

The BPM6 figure is considered a more internationally comparable measure of a country's usable foreign exchange reserves.

The latest reserve position comes a day after Bangladesh Bank reported that gross reserves had crossed the $32 billion mark.

The central bank has been working to maintain stability in the country's external sector and foreign exchange market amid efforts to strengthen Bangladesh's foreign exchange position.

Solar Equity Venture has signed an issue management agreement with LankaBangla Investments and Southeast Bank Capital Services Limited to raise capital through an initial public offering (IPO).

The agreement was signed on Sunday in the capital by Ezaz Al Qudrat A Mazid, managing director of Solar Equity Venture; Iftekhar Alam, CEO of LankaBangla Investments; and Md. Mominul Haque, CFA, managing director of Southeast Bank Capital Services Limited, according to a press release.

LankaBangla Investments and Southeast Bank Capital Services Limited will work as joint issue managers. Solar Equity Venture was founded with a clear vision-- to accelerate Bangladesh’s transition toward a clean, resilient, and sustainable energy future, reads a press release.

Building on the extensive experience and proven track record of its sponsor company, Solar EPC Development Ltd., Solar Equity Venture combines renewable energy project development expertise with innovative investment solutions to unlock scalable clean energy opportunities. “Since 2018, our team has successfully developed, financed, engineered, procured, constructed, and managed high-quality solar energy projects across Bangladesh, creating a strong foundation for the company’s next phase of growth,” said Mr Mazid.

“This strategic partnership represents an important milestone in our journey to build a scalable and institutionally structured renewable energy investment platform, mobilise long-term capital, expand our clean energy portfolio, and create sustainable value for investors and stakeholders,” he noted.

“Together, we aim to contribute meaningfully to the growth of Bangladesh’s renewable energy sector and capital market while advancing the country’s clean energy transition,” he added.

Solar Equity Venture believes that by establishing an effective link between renewable energy and the capital market, it will be possible to create new opportunities for domestic and foreign investors to participate in the growth of Bangladesh’s clean energy sector.

A meeting was held today (10 August) to discuss the legal framework and organisational structure of the proposed Invest Bangladesh Authority, which will integrate the Bangladesh Investment Development Authority (Bida), Bangladesh Economic Zones Authority (Beza) and Bangladesh Public-Private Partnership Authority (PPP Authority).

"The main discussion was about what the law and structure should look like. A second meeting will be held within a week to finalise the structure, Bida Executive Member and Head of Business Development Nahian Rahman Rochi told The Business Standard.

The new authority is expected to begin operations after the gazette is issued. A committee headed by the cabinet secretary is overseeing the integration of the three investment-related agencies.

The legal basis for the new authority was established through the passage of the Invest Bangladesh Bill 2026 in parliament, which provides for the integration of the three organisations' functions.

Under the new law, investment- and industrial-zone-related activities will come under a unified institutional framework. Investment and business-related registrations, licences, approvals and clearances will also be provided through a single digital platform.

The government aims to reduce overlapping functions and coordination gaps among the existing agencies and provide domestic and foreign investors with faster, easier and more coordinated services.

New authority to streamline investment services

Once formed, the Invest Bangladesh Authority will take over the assets, records, agreements, liabilities and other matters of Bida, Beza and the PPP Authority, along with their officials and employees.

The statutory body will be headquartered in Dhaka and may, with government approval, establish branches nationwide and liaison offices abroad. It will have a chairman and seven members, with the chairman serving as chief executive.

Its functions will include identifying investment opportunities, promoting Bangladesh to domestic and foreign investors, removing investment barriers and coordinating with relevant ministries and agencies.

It will also advise on using unused public land and facilities productively, assist in appointing foreign officials and consultants in industrial zones, help draft investment agreements and develop an industrial information database.

The governing board will include relevant ministers, the principal secretary to the prime minister, Bangladesh Bank governor, relevant secretaries and private-sector representatives, with the prime minister or nominee as chair.

A single digital platform will provide registration, licences, approvals, clearances, visas and work permits, with relevant agencies connected to it. The government expects the unified structure to reduce administrative overlap and improve the investment climate.

The Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) have suspended trading in the shares of three non-bank financial institutions (NBFIs) after Bangladesh Bank declared them "non-viable" under the Bank Resolution Act, 2026.

The affected companies are Fareast Finance and Investment, FAS Finance and Investment, and International Leasing and Financial Services. The suspension took effect today (10 August) and will remain in force until further notice, the bourses said.

Before the suspension came into effect, all three stocks fell sharply on the Dhaka bourse. International Leasing and Fareast Finance each declined 8.69% to Tk2.10, while FAS Finance dropped 7.40% to Tk2.50.

Bangladesh Bank declared the three institutions non-viable as part of its resolution proceedings, citing severe financial weaknesses and their inability to meet obligations to depositors and other creditors.

The central bank had earlier initiated resolution proceedings against four financial institutions under the Bank Resolution Act, 2026. The fourth, Aviva Finance, was also declared non-viable but is not listed on the bourses.

Bangladesh Bank said the resolution measures were aimed at restoring good governance and accountability in the financial sector, protecting depositors and other creditors, and rebuilding public confidence.

Following the declaration, the central bank exercised its powers under the new law to dissolve the boards of directors of the affected institutions and cancel the appointments of their chief executive officers. Administrators have been appointed to oversee the resolution process and ensure its effective implementation while safeguarding the interests of depositors and other stakeholders.

The decision followed a review of the institutions' financial strength and prospects for recovery, based on a decision of the Bangladesh Bank board.

According to the central bank, the key factors behind the declaration included large capital shortfalls, high levels of classified loans and investments, inadequate liquidity, deteriorating earning capacity, and the inability to repay liabilities owed to depositors and creditors.

Bangladesh Bank officials have been appointed as administrators and associate administrators to oversee the administration, management and resolution activities of the institutions.

The country's premier bourse rebounded yesterday, snapping a two-day corrective spell, as investors reacted enthusiastically to rumours of a major regulatory shift.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) rose 22 points, or 0.38%, to close at 5,844, driven largely by a late-session surge in buying interest across the banking and insurance sectors.

Market insiders said sentiment shifted sharply mid-session after word spread that the Bangladesh Securities and Exchange Commission (BSEC) may withdraw the mandatory price-to-book ratio requirement for margin loans against shares of banks, non-bank financial institutions (NBFIs), and general insurers.

A leader of the DSE Brokers Association told The Business Standard that the development acted as a key catalyst for the rally.

"The prospect of easier margin loan access for these core sectors drew investors in the final hour of trading, pushing the index up and offsetting earlier caution," he said. The blue-chip DS30 index also gained, rising 8 points to close at 2,185.

Despite the rise in indices, market participation cooled slightly, with total turnover on the DSE falling 6% to Tk908 crore.

The market breadth, however, remained positive, with 199 issues advancing compared to 129 that declined, while 64 scrips remained unchanged.

The insurance sector emerged as the star performer of the day. General insurance scrips accounted for the highest share of turnover at 22.8%, delivering a sectoral return of 2.7%. The textile and pharmaceutical sectors followed in terms of trading volume, contributing 19.6% and 8.6% respectively.

In terms of sectoral returns, the miscellaneous and services sectors also posted healthy gains of 2.1% each.

On the flip side, the cement sector faced the steepest correction of 1.2%, while NBFIs remained under pressure, shedding 0.6% on average.

Individual stock performance featured Northern Insurance and Republic Insurance at the top of the gainers' list, both surging by over 9.8%. Heavyweight Beximco Limited also saw a robust 9.67% jump.

Conversely, the losers' chart was dominated by struggling NBFIs, with Peoples Leasing, International Leasing, and Fareast Finance all recording significant price falls, largely due to ongoing concerns regarding the central bank's liquidation plans for weak financial firms.

The bullish sentiment extended to the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) ended 17 points higher at 9,539 and the CASPI rose by 10 points to reach 15,628. Trading activity at the port city bourse saw a notable 13% jump, with turnover reaching Tk35 crore.

Terming the conflict worst global crisis since the Pandemic, ICCB said US-Israeli war on Iran has become one of the most serious geopolitical and economic crises in recent history, threatening global peace, trade, energy security and food supplies.

What began as a military confrontation is now sending shockwaves through international markets and exposing the vulnerability of an increasingly interconnected global economy, For the global business community, the consequences are profound, according to ICCB.

The conflict has disrupted critical energy infrastructure and endangered shipping through the Strait of Hormuz, one of the world's most important oil transit routes.

Rising oil and gas prices have increased transportation and production costs worldwide, placing renewed inflationary pressure on both developed and developing economies.

As a net importer of fuel, fertilizer and several essential commodities, Bangladesh faces mounting pressure from higher global energy prices, increased shipping and insurance costs, and disruptions to international supply chains, the editorial said.

These challenges are likely to fuel inflation, widen the trade deficit, increase fiscal pressure through higher energy subsidies, and raise production costs for export-oriented industries, particularly the ready-made garments sector, ICCB warned.

Rising fertilizer prices could also affect agricultural productivity and food prices, while prolonged geopolitical uncertainty may discourage foreign investment and complicate Bangladesh's efforts to sustain economic growth, maintain macroeconomic stability and achieve a smooth graduation from the Least Developed Country (LDC) category, the report said.

The economic and humanitarian costs of prolonged US-Iran conflict are becoming increasingly stark.

According to the United Nations Office for the Coordination of Humanitarian Affairs, the war in Iran is absorbing vast financial resources-estimated at around $2 billion per week-that could otherwise be directed toward saving more than 87 million lives globally, ICCB said.

International financial institutions have already warned that prolonged hostilities could significantly weaken global economic growth while fuelling inflation, according to the report.

For many developing countries, particularly those heavily dependent on imported energy and food, the conflict risks widening fiscal deficits, increasing debt burdens and delaying sustainable development goals.

According to the latest International Chamber of Commerce (ICC) and Oxford Economics joint Report, economic policy uncertainty has imposed a significant cost on global business investment.

The analysis finds that the surge in economic policy uncertainty in 2025 reduced real business investment by 1.4% across ten major economies, equivalent to approximately US$202 billion in lost or delayed capital spending. In an adverse 2026 scenario, that cost could rise to US$380 billion, while a return to greater policy clarity could generate an additional US$252 billion in investment-a swing of more than US$630 billion. In short, predictability and stability remain major economic assets.

Oil prices were little changed on Monday after surrendering earlier gains, as optimism over talks to reopen the Strait of Hormuz was tempered by Iran's insistence that the United States satisfy several demands before the waterway could reopen.

Brent crude futures stood at $83.54 a barrel, off 1 cent, by 0643 GMT, while US West Texas Intermediate crude futures fell 15 cents, or 0.2%, to $78.03 a barrel.

Both benchmarks had fallen more than 7% last week on hopes that Iran and Oman were close to reaching a deal that would result in a reopening of the Strait of Hormuz, which carried a fifth of the world's oil before the war.

While Iran said on Sunday that a deal with Oman was in its "final stages", it reiterated that the waterway would only reopen once Washington met other conditions, including US compensation for widespread US attacks on Iran.

"Crude oil prices remain caught between opposing forces, as markets assess the possibility of a breakthrough over the Strait of Hormuz against Iran's conditions for reopening the strategic waterway," said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.

Iran and the US are not engaged in talks and Tehran will not start them as long as Washington breaches an interim deal signed in June, Iranian Foreign Minister Abbas Araqchi said on Sunday.

Meanwhile, in a further threat to supply, the Iran-aligned Houthis said they had hit Saudi Aramco's Jazan refinery on Sunday.

The attack came two days after the kingdom signed a defence pact with Sunni Muslim allies Turkey and Pakistan in response to growing regional instability from the US-Israeli war on Shi'ite Iran.

Separately, the United Arab Emirates' ADNOC said on Friday that 15 of its vessels had been attacked transiting the Strait of Hormuz since the beginning of the conflict.

"Any major progress towards restoring unrestricted shipping could exert downward pressure on oil prices, while a breakdown in negotiations or renewed supply disruptions could quickly revive the geopolitical risk premium," Sachdeva said.

angladesh has moved to further strengthen trade and investment ties with New Zealand, targeting expanded cooperation across agricultural technology, dairy, green energy, pharmaceuticals, leather, jute, sustainable textiles and information technology.

Officials highlighted opportunities for joint investment, business-to-business links and export growth during talks with New Zealand Trade and Enterprise (NZTE).

Commerce Secretary Md Ataur Rahman led the Bangladeshi delegation. Joint Secretary (FTA) Md Firoz Uddin Ahmed and Deputy Secretary (FTA) Farhana Islam were also present, while NZTE’s Market Manager for Southeast and East Asia, Rachel McGuckian, attended the meeting.

Annual bilateral trade stands at around $450 million, with dairy and metal products accounting for a significant portion of Bangladesh’s imports from New Zealand, the meeting noted. Bangladeshi exports to New Zealand total about $147 million, with ready-made garments accounting for a major share.

Dhaka requested NZTE’s cooperation in expanding its non-RMG exports to New Zealand to make bilateral trade more balanced and diversified, said a commerce ministry press release.

The ministry highlighted pharmaceuticals, environment-friendly jute goods, leather, sustainable textiles and IT services as areas for new market opportunities in the New Zealand market.

Highlighting internationally recognised certifications and quality production systems, the Bangladeshi delegation said the country’s drug manufacturers could supply quality generic medicines and vaccines to New Zealand’s healthcare sector at competitive prices.

They also highlighted the availability of more than 650,000 skilled technology professionals and proposed business partnerships with New Zealand technology companies in software, fintech and digital services.

On the investment front, Bangladesh invited New Zealand businesses to invest in its special economic zones, highlighting opportunities in dairy processing, specialised nutritional products, cold-chain logistics, agri-tech, advanced manufacturing, renewable energy and environmentally friendly technologies.

The Bangladeshi delegation said various investment facilities were available for foreign investors in the special economic zones, adding that New Zealand companies could use these opportunities not only to invest in Bangladesh but also to expand their businesses into the wider South and Southeast Asian markets.

To turn bilateral cooperation into concrete outcomes, Bangladesh proposed three immediate steps: direct communication between NZTE’s Southeast and East Asia team and the Bangladesh Investment Development Authority (BIDA), virtual B2B meetings connecting New Zealand businesses with Bangladeshi exporters in pharmaceuticals, IT and leather, and enhanced coordination with New Zealand’s foreign affairs and trade ministry.

The two sides also agreed to establish a bilateral Business Council, and to organise and participate in trade fairs.

The meeting stressed the importance of building a balanced and mutually beneficial economic partnership by utilising the respective strengths of both countries.

Officials expect combining Bangladesh’s large market and manufacturing capabilities with New Zealand’s technological expertise and high-value export capacity to take bilateral trade and investment relations to a new height.