Chinese exports and imports soared in July, official data showed Friday, as the manufacturing powerhouse benefits from a global AI boom lifting overseas demand for its tech products.

The world’s second-largest economy last year achieved a historic trade surplus of nearly $1.2 trillion, helping its manufacturing sector through a prolonged slump in domestic consumption.

The export boom has been propelled further this year by increased demand for Chinese data-processing equipment and related components, as companies rush to build artificial intelligence capacity.

Exports climbed 23.9 percent year-on-year last month, the General Administration of Customs (GAC) reported, compared with a 23.0 percent forecast by Bloomberg.

Overseas shipments of computers and related parts jumped 45.2 percent on year in the first seven months, the data showed.

“Export and import values remain elevated, helped by soaring global demand for electronics and green tech products,” wrote Julian Evans-Pritchard of Capital Economics.

China’s trade surplus appears to be on pace to match that of last year, reaching $687 billion through the end of July, the data showed Friday.

The yawning gap has increasingly raised eyebrows abroad -- particularly in Europe, where leaders worry about floods of Chinese exports squeezing out local manufacturers.

Beijing has insisted it never deliberately pursued a trade surplus.

The Communist Party’s Politburo -- the decision-making body headed by President Xi Jinping -- urged a more “balanced” trade development at a key meeting late last month.

“Export growth continued to support the economy in July,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, wrote in a note after Friday’s data.

“I expect intense negotiations between China and (its) major trading partners in coming months on what can be done to make trade more balanced,” he added.

Imports increased 27.5 percent in July, extending this year’s strong performance even as main indicators of domestic demand have remained weak.

However, that was slower than the 36 percent surge seen in June, and also missed a Bloomberg forecast of 29.5 percent growth.

The growth has been achieved despite considerable pressure on the global trading system from the war in the Middle East and simmering trade frictions between Beijing and Washington.

China’s shipments to the United States rose 17 percent year-on-year last month, Friday’s data showed, as the countries remain locked in a trade war despite efforts to ease tensions.

That brought China’s surplus with its superpower rival this year to nearly $171 billion through the end of July, according to the official data.

The latest figures come days after a fresh flare-up in trade tensions between the world’s top two economies.

Following sanctions imposed by Washington over forced labour and national security concerns, Beijing on Wednesday announced restrictions on drone exports to the United States and blacklisted six firms.

China and the United States spent much of last year embroiled in an escalating trade war but reached a truce when US President Donald Trump met Xi in October.
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The relationship will undergo further scrutiny in coming weeks as officials prepare for a scheduled state visit by Xi to the United States in late September.

People will soon be able to borrow digitally from banks to pay utility bills and top up their mobile phones. The interest-free loans, ranging from Tk 50 to Tk 5,000, will have to be repaid within 30 days.

There will be no interest on such loans. Banks will instead be allowed to charge a fixed service fee based on the amount, according to a draft policy by the Bangladesh Bank (BB).

The central bank said the facility would help expand digital financial services and promote a cashless economy.

The BB has published the draft for public consultation and feedback. Central bank officials said they would review comments from stakeholders before issuing the final policy.

The maximum service fee will be Tk 5 for loans of Tk 50 to Tk 250. The fee will rise to Tk 10 for loans of Tk 251 to Tk 500, Tk 15 for loans of up to Tk 1,000, Tk 25 for loans of up to Tk 2,000, Tk 35 for loans of up to Tk 3,000, and Tk 50 for loans of Tk 3,001 to Tk 5,000.

Banks will not be allowed to charge any interest, penalty, processing fee or other charge beyond the fixed service fee. Customers who repay their loans before maturity will also not have to pay an early settlement fee.

The entire lending process will have to be completed digitally. Instead of physical signatures, banks will have to verify customers through biometric authentication and obtain their consent digitally.

Banks must also verify customers through registered mobile SIMs and one-time passwords, and use two-factor or multi-factor authentication where necessary.

According to the draft, bank agents and third-party service providers will not be allowed to store customer biometric information.

To strengthen cybersecurity and protect customer data, commercial lenders will have to store all customer and loan-related information at data centres located in Bangladesh, in line with the BB’s cloud computing and cybersecurity guidelines.

For such small loans, real-time checks through the Credit Information Bureau (CIB) have been temporarily relaxed until the BB’s API-based 24/7 CIB system becomes fully operational. However, banks must put safeguards in place to prevent loans from being disbursed to defaulters.

Banks will also not be allowed to charge customers a CIB inquiry fee for this product.

Before disbursing a loan, banks must collect information about a borrower’s existing loans from other banks, finance companies and mobile financial service providers, where applicable, to comply with the Bank Company Act.

Banks will have to clearly explain the loan amount, repayment period, fees and repayment methods before obtaining customers’ consent, as per the draft. Besides, banks will have to take steps to improve customers’ financial literacy.

Before launching it commercially, scheduled banks will have to pilot the product for at least six months. After a successful evaluation, commercial lenders will be allowed to roll out the product after obtaining approval from their respective boards of directors.

Seeking anonymity, a senior central bank official told The Daily Star that City Bank has applied to the BB to introduce the loan product. The application prompted the central bank to prepare a policy that can be used by all banks.

Muhit Rahman, managing director of One Bank, said, “This will be a good move. Our neighbouring countries already have such loan products.”

He said the central bank’s draft policy is still at a preliminary stage and needs further clarification on issues such as borrower identification, borrower assessment and other operational aspects.

The scheduled banks disbursed Tk 428.34 billion (Tk 42,834.16 crore) in agricultural and rural credit in the just-concluded fiscal year 2025-26, exceeding the central bank’s annual target of Tk 390 billion (Tk 39,000 crore) (9.83 percent), according to a monthly report released by Bangladesh Bank (BB).

The report, titled “Monthly Report on Agricultural and Non-Farm Rural Credit Position” and prepared by the Agricultural Credit Department-1 (Monitoring and Oversight Wing) of the central bank, shows disbursement through 58 participating banks rose 14.76 percent compared to Tk 373.26 billion (Tk 37,326.52 crore) disbursed in FY2024-25.

Including Tk 13.34 billion (Tk 1,334.22 crore) disbursed by the Bangladesh Rural Development Board (BRDB), the total agricultural credit flow for FY26 stood at Tk 441.68 billion (Tk 44,168.38 crore), up 13.97 percent from Tk 387.54 billion (Tk 38,754.26 crore) in the previous fiscal year.

Target achievement by bank category:

Specialised banks – Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank and Probashi Kallyan Bank – posted the highest target achievement at 123.40 percent, disbursing Tk 126.16 billion (Tk 12,615.57 crore) against a target of Tk 102.23 billion (Tk 10,223 crore).

State-owned commercial banks achieved 109.89 percent of their Tk 36.57 billion (Tk 3,657 crore) target, disbursing Tk 40.19 billion (Tk 4,018.62 crore), while foreign commercial banks reached 104.05 percent of their Tk 15.93 billion (Tk 1,593 crore) target with disbursement of Tk 16.57 billion (Tk 1,657.46 crore).

Private commercial banks, the single largest contributor to overall disbursement, achieved 108.05 percent of their Tk 171.06 billion (Tk 17,106 crore) target, disbursing Tk 184.83 billion (Tk 18,483.19 crore), which alone accounted for 43.15 percent of the year’s total agricultural credit.

Islamic banks were the only category to fall short of their target, disbursing Tk 60.59 billion (Tk 6,059.32 crore) against a target of Tk 64.21 billion (Tk 6,421 crore), an achievement rate of 94.37 percent and a 1.50 percent decline from the previous year.

Under the Agricultural and Rural Credit Policy and Programme for FY26, banks were required to disburse 55 percent of credit to the crops sector, 20 percent to livestock and poultry, 13 percent to fisheries, 2 percent to irrigation and agricultural equipment, and the remaining 10 percent to non-farm rural income-generating activities.

Actual disbursement, however, showed a somewhat different pattern: crops received 47.32 percent of total disbursement, livestock and poultry 26.38 percent, fisheries 13.33 percent, non-farm rural credit 11.68 percent, and irrigation and agricultural equipment combined just 0.93 percent. A further 0.37 percent went to grain storage and marketing.

Loan recovery outpaces disbursement growth:

Recovery of agricultural loans grew faster than disbursement during the year, rising 19.99 percent to Tk 456.27 billion (Tk 45,626.93 crore) from Tk 380.24 billion (Tk 38,024.50 crore) in FY25. Amounts due for recovery also rose 9.37 percent to Tk 660.26 billion (Tk 66,025.75 crore).

Overdue loans fell 8.43 percent year-on-year to Tk 198.07 billion (Tk 19,807.33 crore), while classified agricultural loans declined 5.92 percent to Tk 185.78 billion (Tk 18,578.47 crore), offering some relief after a sharp jump in both categories during FY25.

Foreign commercial banks reported zero overdue and zero classified loans in both fiscal years, while Islamic banks saw their overdue loans surge 73.11 percent and classified loans nearly two-and-a-half times higher, the only category to see a rise in both indicators.

Outstanding agricultural credit across all bank categories stood at Tk 635.74 billion (Tk 63,574.38 crore) at the end of FY26, up 5.55 percent from Tk 602.32 billion (Tk 60,232.42 crore) a year earlier.

Month-wise figures show disbursement fluctuated through the year, peaking in December 2025 at Tk 49.15 billion (Tk 4,915.49 crore) before falling sharply in the following months. Disbursement picked up again in June 2026, the final month of the fiscal year, rising 29.47 percent from May to close the year at Tk 47.57 billion (Tk 4,757.55 crore) for the month.

The Bangladesh Rural Development Board disbursed Tk 13.34 billion (Tk 1,334.22 crore) in agricultural credit in FY26, 6.55 percent lower than its Tk 14.28 billion (Tk 1,427.74 crore) disbursement in FY25, against a target of Tk 14.86 billion (Tk 1,486.10 crore). Recovery through BRDB, however, rose 2.71 percent to Tk 13.11 billion (Tk 1,311.23 crore).

BB data going back to FY2016-17 shows agricultural credit disbursement has more than doubled over the past decade, from Tk 209.99 billion (Tk 20,998.70 crore) to Tk 428.34 billion (Tk 42,834.16 crore), alongside a steady rise in the annual disbursement target, which has grown from Tk 175.5 billion (Tk 17,550 crore) to Tk 390 billion (Tk 39,000 crore) over the same period.

The report noted that the agriculture sector continues to contribute 11.71 percent to Bangladesh’s GDP and employs around 46 percent of the country’s workforce, underlining its centrality to food security and rural livelihoods even as the sector faces mounting pressure from climate change and shrinking arable land.

The central bank’s report cautioned that despite the positive overall disbursement picture, the continued scale of overdue and classified loans “compels” close attention to recovery and default management to sustain healthy agricultural financing going forward.

Every major conflict in the Gulf revives the same fear – not simply of higher oil prices, but of whether the region that supplies around one-third of the world's seaborne crude can continue to underpin the global economy.

This time, however, the question runs deeper. If war prolongs and continues to damage production facilities, export terminals or vital shipping lanes, is the age of Middle Eastern oil nearing its end? Is the world prepared to move beyond oil, gas and the Middle East altogether and survive?

The modern economy was built on abundant and affordable fossil fuel. Coal powered the Industrial Revolution, but oil overtook it after the Second World War as Gulf producers rapidly expanded output. Natural gas followed, becoming an essential fuel for power generation, industry and households. Together, oil and gas still account for more than half of global energy consumption despite the rapid growth of renewables.

Is oil really declining?

Although the 21st century is expected to belong to renewable energy, fossil fuels are likely to dominate the global energy mix for decades. Oil and gas will remain indispensable for transport, heavy industry, petrochemicals and heating even as electricity becomes cleaner.

Renewables are booming. But electricity is only a part of the energy demand. Aviation still depends on jet fuel. Shipping still runs largely on oil. Petrochemicals need crude. Heavy machinery and defence depend on petroleum.

Oil's share is shrinking gradually, but its strategic importance remains enormous. The transition is underway, not complete.

Modern globalisation was built on abundant, affordable energy. The Gulf's real advantage has never been just oil – it has been abundant, low-cost oil.

Can the world replace Gulf supplies?

The Gulf countries supply over a fifth of global crude oil production and about 10% of worldwide natural gas production. The region holds roughly 33% of proven global oil reserves and 21% of natural gas reserves.

A major portion of Gulf oil and liquefied natural gas passes through the Strait of Hormuz, making global supply heavily dependent on maritime stability in the region. With war now spreading to the Red Sea, another major sea trade corridor now comes under fresh threat as Yemen-based Houthis targeted Saudi ships on Bab el-Mandeb. Oil and goods leaving the Persian Gulf through Hormuz must travel past the Arabian Peninsula and typically pass through Bab el-Mandeb to reach the Red Sea and the Suez Canal.

When both channels become unsafe, around one-fifth of global oil supplies and one-tenth of natural gas supplies are effectively cut off from the market.

Some potential alternative suppliers are the United States, Canada, Brazil, Guyana, and Norway. Some have already boosted output and exports, but physical constraints remain as they cannot build production, storage and export infrastructure overnight to further scale up supplies.

These producers may benefit in the short term from supply gaps, but they are far from being able to replace the massive supply deficit from the Persian Gulf immediately. Russia and Venezuela could have been better alternatives had sanctions not constrained their production and exports.

Modern globalisation was built on abundant, affordable energy and the Gulf provided that. If prolonged war and persistent sanctions push oil prices to $120-$150 a barrel for months or years, the world will face higher inflation, costlier shipping, and rising prices of food, fertilisers and raw materials, leading to slower trade. For smaller economies like Bangladesh, the impact would be far worse; government subsidies would rise and debt stress would deepen.

Scarce and expensive oil and gas will accelerate the transition to electric vehicles, renewable energy, and emerging alternatives such as hydrogen. But any such transition takes decades.

In the meantime, energy scarcity and high prices could instead reverse the global push for clean energy. Coal is already making a comeback as countries rely on it to generate more electricity. Governments often return to fossil fuels during crises, even while investing in clean energy for the long term. The electricity-hungry AI industry is also prompting the US to invest more in nuclear energy.

What it means for Bangladesh

The world is unlikely to move beyond oil and gas anytime soon, and moving beyond the Middle East as their cheapest and most reliable supplier is even less realistic. Any prolonged disruption in the Strait of Hormuz, Bab el-Mandeb, or the Suez Canal can amplify price shocks and ripple far beyond the region, pushing up inflation, slowing trade and delaying economic recovery across both developed and developing economies.

There are encouraging signs that diplomacy may yet prevail. Despite exchanging threats, the US and Iran have both indicated a willingness to resume talks. If this progresses, Hormuz may reopen. Saudi Arabia, though forming a global group to strengthen maritime security in the Red Sea amid Houthi attacks, has urged the Trump administration for restraint.

While oil multinationals are enjoying a windfall from war-induced price hikes – making an estimated $93 billion in the three months since the war began in February this year – Middle Eastern countries have suffered substantial damage to at least 80 oil and gas facilities, with some requiring up to two years to resume operations, according to International Energy Agency estimates.

The world will continue to need oil and gas. The Middle East also needs to protect its oil resources, which remain the backbone of the region's economies despite ongoing diversification efforts.

The longer a Gulf war lasts, the greater the risk for both the Middle East and energy-importing countries.

For Bangladesh, the stakes are particularly high. Its economy has grown on the back of affordable imported energy and export-oriented trade, both of which depend heavily on the Gulf and the shipping routes through Hormuz, Bab el-Mandeb, and the Suez Canal. Any prolonged disruption would arrive as higher import bills, persistent inflation, and slower economic growth. If the Gulf's oil economy weakens, Bangladesh risks losing its largest manpower market.

Bangladesh has little influence over the course of a distant conflict. What it can do is pursue a balanced foreign policy relating to the Gulf region, diversify energy sources where possible and avoid strategic choices that could jeopardise either its fuel supplies or access to key maritime trade routes.

Bangladesh Bank has formed a Tk100 crore fund to encourage small merchants to adopt Bangla QR, with the fund to be increased if necessary, Governor Md Mostaqur Rahman said today (8 August).

Speaking at a Bangla QR workshop at Radisson Blu Chattogram Bay View's Nilgiri Hall, organised jointly by Bangladesh Bank and the International Finance Corporation (IFC) under the "Cashless Digital Bangladesh" project, he said Bangladesh was drawing on neighbouring countries' experience to expand digital payments.

The country currently records around 1 crore digital transactions a month, but the central bank aims to raise this to 1 crore a day by the end of the current fiscal year - a nearly 30-fold increase in about 10 months.

Limited smartphone use remains a major obstacle, with around 6 crore people still using feature phones. The government is working to provide affordable Android handsets. Users are willing to spend around Tk3,000, while manufacturers say such phones cannot be offered below Tk8,000.

Bridging the Tk5,000 gap could require around Tk30,000 crore, and initiatives are being explored to finance the investment, including instalment-based purchases through mobile operators.

Bangla QR use surges

Bangladesh Bank data show Bangla QR transactions rose from 7,23,378 worth Tk212.05 crore in January 2026 to 62,54,938 worth Tk1,475.95 crore in July - an 8.6-fold rise in volume and nearly sevenfold increase in value in six months.

Bangla QR merchants increased from 13,52,712 in May to 16,85,188 in June and 24,25,133 in July, representing 79% growth in three months and nearly 93% in 10 months.

Cash management costs Tk20,000cr

Md Parvez Anzam Munir, additional director of Bangladesh Bank's Payment Systems Department-1, said cash management costs around Tk20,000 crore annually, covering printing, production, distribution, collection of worn notes and their eventual destruction.

He called the expenditure an "extreme luxury and waste" for a poor country and said greater digital payments could substantially reduce it.

Governor Mostaqur said digital transactions would improve transparency in business finances and reduce risks for small traders who rely on employees to handle money, including concerns over missing funds and irregularities. Digital payments could also provide an alternative to cash for extortion payments.

Bangla QR has been made mandatory for merchant licences issued by city corporations and municipalities, while institutions have been instructed to replace existing QR codes with Bangla QR by 2026. Instant settlement of Bangla QR transactions into merchants' accounts has also been introduced.

Deputy Governor Md Kabir Ahmed said Bangla QR would help build a financially inclusive society. Around 24 lakh merchants now use the system, with about 2 lakh daily transactions worth nearly Tk50 crore. Greater use could also help raise the tax-to-GDP ratio.

Merchants warned of fraud

The workshop warned merchants about scams involving fake calls and SMS impersonating banks, mobile financial services or government agencies, as well as phishing, hacking, malware, fake customer care and fraudulent websites. They were advised not to share personal information, PINs or OTPs or click unfamiliar links.

Chaired by Payment Systems Department Executive Director Md Sirajul Islam, the workshop was attended by Governor Md Mostaqur Rahman as chief guest, Deputy Governor Md Kabir Ahmed and IFC representative Hasan Shahriar as special guests. Around 120 merchants, including 20 women, participated.

Three sessions covered Bangla QR use, benefits and transaction security. Hasan Shahriar said IFC's monthly digital transaction target had risen from 20 lakh to around 1 crore. Senior Bangladesh Bank officials, including Executive Director Md Hanif Mia, also attended.

Brent crude oil climbed more than $1 a barrel on Friday over ongoing uncertainty about the negotiations in progress that determine control of, and reopen, the key shipping artery of the Strait of Hormuz.

Brent crude futures settled at $83.55 a barrel, gaining $1.06, or 1.3 percent. West Texas Intermediate futures finished at $78.18 a barrel, up 89 cents, or 1.15 percent.

Oil futures settled more than $3 a barrel higher on Thursday as Iran reviewed a bill to ban US and Israeli vessels from the Strait of Hormuz, through which roughly a fifth of the world’s oil and liquefied natural gas normally passed before the war began at the end of February.

Oil prices fell earlier in the week as a possible solution to the conflict looked more likely, part of an on-again, off-again pattern that has persisted since the US and Israel jointly struck the nation in late February, igniting a conflict that has now stretched into a sixth month.

Brent was on course for a weekly loss of more than 8 percent, while WTI lost more than 7 percent.

While this week’s signals on a potential deal have sent a roller-coaster ride in market sentiment, the market remains in the dark as to what needs to happen for the agreement to be clinched, said Vandana Hari, founder of oil market analysis provider Vanda Insights.

“The market is trying to assess if an Iran-Oman agreement would allow a US-flagged vessel to transit the Strait of Hormuz,” said Andrew Lipow, president of Lipow Oil Associates.

“Would it allow a US-owned vessel to go through? Would it allow a vessel headed for a US port to go through?”

Both Iran and Oman are said to have agreed on the route ships would take through the strait, which lies between their two countries. It is unclear if the US will agree to these terms.

Analysts also said that this week’s developments have signalled that hostilities between Iran and the US are not yet over.

Iran is seeking fees of between 5 percent and 7 percent of the price of cargoes from ships using the strait, a senior Iranian official said.

Oman, meanwhile, is discussing fees of about 3 percent while Washington wants no fees at all.

“The longer the supply disruption goes, the longer the world’s commercial reserves are being drawn down,” he said.

Four industry sources have said the proposed deal is not easily workable because of US sanctions and restrictive insurance clauses on any payments.

“The structure of the Iran-Oman agreement in its current form and the power it yields to Iran is nothing that (US President Donald) Trump can accept politically,” said Bjarne Schieldrop at SEB Research. “Trump would face heavy political criticism at home if he did.”

“We need that strait to be reopened fully,” said John Kilduff, partner with Again Capital.

The continued uncertainty about the outcome of the war and the timing of its end keeps traders very anxious, Kilduff said.

The outstanding stock of government guarantees fell by more than 5.0 per cent to Tk 1.015 trillion as of March 31, 2026, from Tk 1.070 trillion three months earlier, as repayments outpaced the issuance of new guarantees, according to the Finance Division.
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The decline is attributed to both repayments against existing guaranteed loans and a limited number of new guarantees issued over the past two years, according to people familiar with the matter.

Of the total outstanding guarantees at the end of March, external guarantees accounted for Tk 534.17 billion and domestic guarantees Tk 480.79 billion.

The government, through the Finance Division, provides sovereign guarantees to domestic financial institutions including Bangladesh Bank as well as foreign financial institutions including foreign banks against loans or other financing facilities extended to government agencies and state-owned enterprises.

Such guarantees expose the government to contingent liabilities because the state may ultimately have to repay the money if the guaranteed entities fail to service their obligations.

The guarantees have primarily been extended to entities operating in strategic and infrastructure-related sectors, including power generation, mineral production and supply, fertiliser manufacturing and state-owned enterprises such as Biman Bangladesh Airlines and the Trading Corporation of Bangladesh (TCB).

At the end of December 2025, the government's outstanding guarantee stock stood at Tk 1.0697 trillion. Of this, Tk 583.83 billion was externally sourced and Tk 485.90 billion from domestic sources.

People familiar with the matter said the issuance of new guarantees had remained limited during the last interim-government period and during the period of transition to the new government following the last national election.

They said the relatively low volume of new guarantees over the past two years, combined with repayments against existing guaranteed loans, had helped reduce the overall stock.

The decline in guarantees could ease the government's contingent-liability exposure in the short term, although the fiscal risk remains depending on the financial health of the entities whose borrowings are backed by sovereign guarantees.

The government therefore needs to monitor the repayment capacity of guaranteed entities closely, particularly state-owned enterprises and companies operating in capital-intensive sectors, where financial difficulties could eventually translate into direct fiscal obligations.

Algeria has sought greater Bangladeshi investment in its manufacturing sector, offering government support to businesses as the two countries look to expand trade and investment ties, Algerian Ambassador to Bangladesh Abdelouahab Saidani said on Friday.

He made the remarks during a visit to the industrial facilities of Max Group, one of Bangladesh’s leading conglomerates.

“I see immense potential for expanding business and investment between Bangladesh and Algeria,” Abdelouahab said.

The visit focused on strengthening bilateral trade, investment and industrial cooperation.

Accompanied by senior officials from the Algerian Embassy, Abdelouahab held discussions with Max Group Chairman Ghulam Mohammed Alomgir.

Abdelouahab highlighted Algeria’s abundant reserves of key industrial raw materials, including steel, natural gas and petroleum, which could be imported competitively by Bangladeshi industries. He also said there are significant opportunities for Bangladeshi manufacturers to export high-quality finished goods to the Algerian market.

The ambassador invited Alomgir to visit Algeria and proposed that Max Group establish a company and manufacturing plant there, assuring full government facilitation.

The support would include assistance with land, utilities and raw materials, as well as a favourable tax regime, he said.

On bilateral cooperation, Abdelouahab said 22 draft agreements have been formulated between Bangladesh and Algeria, with most in the final stages of signing.

He also emphasised the role of the Algeria-Bangladesh Business Forum, comprising business leaders from both countries, in promoting greater trade and investment cooperation.

During the visit, Abdelouahab toured AFA Steel Industries Ltd, which produces springs for various vehicles, and later visited Max Group’s stainless steel pipe manufacturing unit, crockery production line and construction materials division.

He showed particular interest in Maxcrete Limited’s eco-friendly AAC block manufacturing facility.

Alomgir briefed the ambassador on Max Group’s evolution, saying its initial focus four decades ago was import substitution to save foreign currency.

He said the group now plans to shift decisively towards exports, with future investments planned in semiconductors and solar energy, particularly rooftop solar solutions.

Bangladesh Bank (BB) has introduced detailed rules for appointing temporary administrators to troubled banks and finance companies, giving them broad powers to protect critical operations, assess financial conditions and facilitate the resolution of failing institutions.

The central bank issued the “Regulations for Temporary Administration under the Bank Resolution Act, 2026” on August 6.

The rules apply to scheduled banks, including digital banks, and finance companies undergoing immediate corrective measures or the resolution process.

Under the regulations, the Bank Resolution Department will nominate one or more qualified persons as administrators or assistants. They may be Bangladesh Bank officials or outsiders, but must have no conflict of interest with the institution concerned.

Neither an administrator nor any family member can be a debtor, creditor, shareholder or other interested party of the institution. If an administrator acquires any direct or indirect financial or other interest after appointment, they must notify the Bank Resolution Department within 24 hours.

Administrators, in consultation with the department, can take measures to keep critical functions running. They may also replace key management personnel and temporarily perform the duties of the chairman, director or chief executive officer, where necessary.

For institutions under immediate corrective measures, administrators must appoint an independent auditor to assess their actual financial condition.

The audited financial statements and report must be submitted within three months of appointment, unless the department sets another deadline.

Within one month of submitting the report, the administrator must also submit a plan to preserve or restore the institution’s financial health.

For institutions undergoing resolution, administrators must prepare a list of assets and liabilities and submit it within two months of appointment. Within one month of that submission, they must recommend the most effective resolution option.

The regulations also require administrators to investigate suspected financial crimes through forensic audits. If directors or officials are found to have been involved in offences under the Bank Resolution Act, administrators must take legal action against them, without prejudice to other proceedings.

Administrators must maintain records of all decisions and actions, preserve confidentiality and submit quarterly progress reports to the Bank Resolution Department. At the end of the process, assets and liabilities may be transferred to a new board and management, a bridge bank, a transferee or a liquidator.

A final report on the temporary administration must be submitted within three months of its completion.

Bangladesh Bank will determine administrators’ remuneration, while the institution under administration will bear all related expenses, subject to conditions set by the central bank.

The regulations also require Bangladesh Bank to publish notice of an administrator’s appointment on its website and that of the institution concerned, as well as in one widely circulated Bengali and one English national daily, by the next working day.

The new rules repeal the temporary-administration provisions under the Regulations for Bank Resolution, 2025, but actions already taken under those provisions will be deemed to have been taken under the new regulations.

Total government debt stock rose over 5.4 per cent during the first nine months of the fiscal year 2025-26 to Tk 22.59 trillion, driven largely by increased domestic borrowing, particularly from the banking system.

According to finance ministry data, released Thursday, domestic debt climbed 8.41 per cent to Tk 12.954 trillion by the end of March from the level recorded at the beginning of the fiscal year, the report showed.

Borrowing from the banking system accounted for the largest share of domestic debts, rising nearly 14 per cent to Tk 8.82 trillion by the end of March, which reflects government's growing reliance on banks to finance its budget deficit.

In contrast, borrowing from nonbank sources, including National Savings Certificates (NSCs), declined 1.46 per cent to Tk 4.14 trillion during the period, suggesting weaker mobilisation from retail savings instruments.

External debt rose at a much slower pace, increasing 1.5 per cent to Tk 9.637 trillion as of March 2026 from July 2025.

The higher reliance on domestic borrowing also pushed up debt-servicing costs on account of principal and interest thereon.

In the meantime, total interest expenditure rose 29 per cent year on year in the first three quarters of FY2025-26.

Interest payments on domestic debts surged 34 per cent year on year to March 2026, driven by both higher borrowing volumes and elevated interest rates.

By comparison, interest payments on external debt increased by a modest 4.0 per cent year on year during the period ending March 2026.

Workers returned to production lines yesterday as the dials on gas pressure gauges began ticking up across major industrial belts, offering some relief to apparel factories during this peak Christmas shipment season.

“We can run our spinning mills at 60 percent to 80 percent now which was as low as 40 percent last week,” said a top official of a large textile and garment group in Gazipur yesterday.

Requesting anonymity, the official said they expect the power supply situation to improve soon as well.

In the third week of July, one of the country’s two floating storage and regasification units (FSRUs) was damaged in an accident, cutting the nationwide supply of liquefied natural gas (LNG) by more than 17 percent.

The resulting gas shortage became acute. Households struggled to cook with piped gas, long queues formed at CNG filling stations, and factories cut production or shut down altogether in some areas.

On Wednesday last week, more than 200 small and subcontracting garment factories in Gazipur sent their workers on a three-day leave.

Many other factories in Savar, Ashulia, Kanchpur and Narayanganj, which were also badly affected by the gas shortage, took similar measures.

After about half a month, the FSRU at Cox’s Bazar was partly repaired on Thursday. By Friday, the terminal, operated by Excelerate Energy, was able to supply about 115 million cubic feet of gas a day to the national grid, according to Petrobangla.

Mazharul Alam Milon, administrative officer of ABM Fashion Ltd in Gazipur, told The Daily Star that the factory reopened yesterday after a three-day closure.

“Work is continuing in all our sections, and the workers have also turned up as usual. Although the factory is fully operational, we are still facing a gas shortage,” he said.

Masud Kabir, managing director of Gazipur-based sweater exporter Motex Fashion, said yesterday that he could now buy two to three lorry loads of gas bottles a day, compared with one lorry load every two to three days last week.

Masud said he buys gas in bottles from nearby CNG filling stations because his factory does not have a direct gas connection.

Mohd Khorshed Alam, chairman of Little Star Spinning Mills Ltd, said his mill was currently running at 60 percent capacity as the gas supply had improved somewhat. However, he said further improvement is needed to meet existing work orders.

Mohammad Amzad Hossain, superintendent of Gazipur Industrial Police (Industrial Police-2), told The Daily Star by phone yesterday afternoon that most factories in Gazipur have reopened.

“The remaining factories will reopen tomorrow [today],” he said.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the gas supply has improved, but it is too early to say how much factories have recovered.

“It may take a few more days for full operations,” he said.

For apparel manufacturers, the disruption comes at a critical time as they work to ship Christmas orders to Western markets. Delays could force them to use costly air freight or offer discounts to compensate foreign buyers.

“The company will have to face the expensive air shipment or big discounts from the foreign buyers,” said the senior official of the Gazipur-based textile and apparel group.

BGMEA Vice President Shehab Udduza Chowdhury said gas supplies have improved since Thursday but remain inadequate.

“Still, we have to run the factories with diesel generators for at least four hours, for which the cost of production is increasing,” he told The Daily Star over the phone.

Nazma Akter, president of the Sommilito Garments Sramik Federation, said some garment factories remained closed for as long as five days, but the situation has started to improve.

She urged the government to give priority to supplying gas to mills and factories, saying millions of workers and shipments of goods depended on the industry.

Md Towhidur Rahman, president of the Bangladesh Apparels Workers Federation, also urged the government to monitor gas supplies at the factory level so that it could take appropriate measures.

A17-member advisory panel formed by the government will oversee and guide overall activities leading to the signing of a proposed free- trade agreement (FTA) with the European Union (EU) for a win-win deal.
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Sources say the high-level committee comprises top bureaucrats, trade bodies, and economic think-tanks.

According to trade analysts, the convergence of duty-facility losses by Bangladesh stemming from the upcoming least-developed country (LDC) graduation with the competitive asymmetry created by India and Vietnam's newly weaponised FTAs is a matter of concern that has sparked urgent calls for a radical re-engineering of the country's economic diplomacy and product mix.

Meantime, the commerce ministry on July 26 issued an official notification appointing the commerce minister as the chairperson of the panel, with the Head of FTA Wing of the ministry serving as member-secretary.

The committee brings together key government policymakers, major business-chamber heads and leading economic think-tank leaders to formulate negotiating strategies and ensure trade alignment.

From government and regulators, the committee includes secretaries of the Ministry of Commerce, Finance Division, the Ministry of Foreign Affairs, and the Prime Minister's Office (PMO), alongside the chairmen of the Bangladesh Trade and Tariff Commission (BTTC) and the National Board of Revenue (NBR).

Private-sector representations include presidents of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the chairperson of EuroCham Bangladesh.

From economic think-tanks is the executive director of the Centre for Policy Dialogue (CPD), chairmen of Research and Policy Integration for Development (RAPID), Policy Exchange Bangladesh, and Policy Research Institute (PRI), alongside the CEO of Bangladesh Foreign Trade Institute (BFTI).

According to the office order, signed by joint secretary Mahbuba Khatun, the committee's key mandates include monitoring the overall activities and negotiation proceedings of the core Bangladesh negotiating team.

It would also provide advice, technical opinions, and solutions on emerging negotiation issues and trade-policy dynamics during talks while it could co-opt additional members or seek sector-specific expert opinions "whenever necessary to safeguard national interests", according to the notification.

Insiders say the formation of this advisory body is a crucial policy measure as Bangladesh prepares for its upcoming graduation from LDC status, as, once graduated, Bangladesh will lose its Everything But Arms (EBA) initiative under the EU's Generalised System of Preferences (GSP), which currently provides duty-free and quota-free access to the European market-the country's largest export destination not only for ready-made garments (RMG) but also for other exportable goods.

Incorporating private-sector apex bodies like BGMEA, BKMEA and FBCCI and trade think-tanks CPD, PRI and RAPID signals a collaborative approach between the government and industry to negotiate favorable trade terms, tariffs, rules of origin, and sustainability requirements.

Asked about the development on the trade front, BGMEA president Mahmud Hasan Khan said both sides should benefit through signing any FTA.

"If signed, Bangladesh will get or sustain duty-free market access for RMG which might face up to 12-percent duty once graduated. And EU consumers will be ultimately benefitted once products enter without 12-percent duty," he explains.

Besides, Bangladesh buys EU-branded machinery manufactured in China which also benefits the EU, Mr Khan said, adding that there are government-to-government discussions regarding the FTA signing while the trade body will also sit with the EU ambassador once he comes back after enjoying holiday shortly.

The advisory committee members said they were yet to hold any meeting and could explain more once the members meet formally.

Talking to The Financial Express, Chairman of Policy Exchange Bangladesh Dr M Masrur Reaz said Bangladesh being an LDC is enjoying preference-based market access which is time-bound and temporary and it needs to sign trade agreements to enhance trade competitiveness through predictable market access and tariff structure.

"The EU is a very important market for Bangladesh where more than 50 per cent of overall exports are destined not only for RMG but also to diversify potential non-RMG exports."

Besides, under the EU-Vietnam FTA, the EU tariffs on Vietnamese exports are being progressively reduced to reach zero by 2027 while once implemented, the EU-India FTA will give India preferential access in sectors that overlap closely with Bangladesh's, including apparel, textiles, leather and footwear.

On the other hand, Bangladeshi RMG will face 9.0-percent to 12-percent duty after graduation and three years of transition period.

"FTA with EU is the most important for Bangladesh not only to diversify products exports but also to sustain the existing market access," Mr Reaz said, adding that trade agreements also help to rationalise tariff structure but also attract foreign direct investment as those accelerate local reforms.

With both the EU-India and EU-Vietnam FTAs in force, Bangladesh's overall exports to the bloc could fall by up to 36 per cent and the rate is 44 per cent for garment, according to a latest RAPID research paper.

A Bangladesh-EU FTA could limit the overall export decline to around 16 per cent and garments to19 per cent, it shows.

According to Eurostat data, Bangladesh garment exports to the EU stood at 19.41 billion euros in 2025 while the figure was 14.29 billion euros in 2021.

A provision of "Payment Guarantee" for renewable-energy sector is now restored, nearly two years after it was scrapped by the interim government only to dissuade both local and foreign investors from making fresh investment, sources said.
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In the absence of payment guarantee, local and foreign banks as well as multilateral lenders shied away y from providing loans for renewable energy projects, leading to lower response in the tenders.

Many tenders on renewable-energy projects received only a few bidders during the last two years, forcing the government to extend bid document-submission deadlines repeatedly.

Now investors say as the government agreed to include the provision of payment guarantee in the bid documents, they have no risks in making investment, and getting bank loans to set up renewable-energy-based power plants will be easier for them.

Officials said the investors had long been pressing the government to restore the provision of payment guarantee so that they can secure loans to set up green power plants.

In the face of their repeated demands, Power Division in a recent letter to Bangladesh Power Development Board (BPDB) has asked for incorporating the provision of payment guarantee while inviting tenders in the future, sources said.

Contacted Friday, Golam Mortuza, Director IPP Cell-1 of BPDB, acknowledged government directives to incorporate the provision of payment guarantee again into bid documents, now that government thrust on energy search grows amid a crunch.

"We are working on it. It was a long demand from the private sector," he told The Financial Express.

Mr Mortuza said the government guarantee would help attract both local and foreign investments in the renewable-energy sector.

As the interim government had written off the guarantee and was not issuing guarantee letters, a number of solar-power projects faced setbacks in getting loans disbursed from local and foreign financiers, including the Asian Development Bank and Japan International Cooperation Agency.

Amid the stalemate, the ADB- JICA duo in a letter to then energy adviser reminded about upholding the contractual obligations, including the issuance of payment-guarantee letters in favour of the independent power producers.

Imran Chowdhury, Deputy Director of Sonagazi Solar Power Ltd, said Power Division's decision to include the payment guarantee in contractual framework is a significant step towards improving the bankability of Bangladesh's utility-scale renewable-energy projects.

"Payment security is one of the key considerations for international lenders, and this measure is expected to strengthen lender confidence and facilitate access to long-term project financing," the company man told The Financial Express.

He has suggested incorporating the provision of payment guarantee into the tender documents of BPDB's ongoing IPP-based solar projects before the bid-submission deadline to maximise the benefits of the decision.

"This would provide greater certainty to prospective bidders, encourage wider participation from experienced international project developers and IPPs, and strengthen competition," said Mr Chowdhury, also a director of Bangladesh Sustainable and Renewable Energy Association.

Stakeholders say as Bangladesh moves towards its target of 10-gigawatt renewable- energy capacity by 2030, improving project bankability will be essential to mobilise international financing and accelerate the implementation of utility-scale solar projects.

Amid the significant fall of electricity generation due to the shortage of gas and fuel oils and rising power subsidy, the new government in the recent months gave utmost importance on producing clean power.

To this end, the renewable-energy sector has been granted various facilities, including waiving import duty on equipment for clean power plants and offering tax rebate for green power consumers.

Bangladesh currently has the installed capacity to generate 1,822 megawatts of electricity from renewable sources, according to the Sustainable and Renewable Energy Development Authority (BSREA).

Bangladesh’s prefabricated steel industry faces a severe downturn driven by a sharp contraction in public infrastructure spending, sluggish private investment, and rising competition from duty-free imports, executives said.

Prefabricated steel structures -- pre-engineered components assembled on-site -- are heavily used across commercial and industrial projects. However, demand has collapsed alongside a broader national development slowdown.

Implementation of Bangladesh’s Annual Development Programme fell to a 53-year low in fiscal year 2025-26, with authorities executing just 67.52 percent of the revised budget.

Public sector demand for locally manufactured prefabricated steel has dropped by nearly 90 percent, according to Md Sarwar Kamal, managing director of McDonald Steel Building Products Ltd.

Industry insiders estimate the domestic market at Tk 4,000 crore, with industrial projects accounting for 80 percent of demand, followed by commercial (15 percent) and residential (5 percent) construction.

Despite a government directive mandating local construction materials in public projects, industry officials allege foreign-funded developments continue to import finished steel duty-free.

“This creates a serious disadvantage for local investors,” Sarwar said.

Foreign suppliers are often able to bring finished structures into the country under duty-exempt arrangements, undermining local producers, he added.

In response to the market imbalance, McDonald Steel has urged the National Board of Revenue (NBR) to either offer concessional customs duties on imported raw materials used in structural steel production or levy equivalent duties on imported finished components.

“This policy does not support the growth of the local prefabricated steel structure industry,” Sarwar stressed.

He emphasised that the duty disparity is especially damaging given the substantial capital domestic firms have already invested in modern manufacturing plants, machinery, advanced technology, and workforce training.

Local producers have demonstrated the capacity to meet international standards and have previously supplied major national infrastructure projects, according to Sarwar.

Local manufacturer Tiger Steel invested roughly Tk 180 crore in 2021 to build a facility in Bhaluka, Mymensingh, anticipating a surge in industrial expansion.

However, the fallout from the Russia-Ukraine war, a weakening domestic economy, dollar shortages, and subsequent political instability severely disrupted those growth plans. New investment largely dried up, driving demand for industrial construction materials down to near zero.

“I am looking for a buyer for the factory because it has become a burden for me,” said Liton Kumar Sharma, managing director of Tiger Steel.

Liton noted that the plant is currently operating at no more than 15 percent of its capacity, forcing the company to slash its workforce from 250 to approximately 110 employees amid slim prospects for a near-term market recovery.

The factory’s retrenchment underscores a broader vulnerability across the sector: when industrial investment slows, demand for prefabricated steel falls in tandem.

The downturn has impacted major producers across the board, though some market segments show signs of resilience.

PEB Steel is currently operating at roughly 60 percent of its production capacity after industrial orders dropped by about 20 percent, according to Jowher Rizvi, managing director of the company and president of the Steel Building Manufacturers Association of Bangladesh.

To adjust, the firm has cut operations from two shifts to one, producing around 2,000 tonnes of steel structures per month.

While Jowher characterised the slowdown as a reflection of broader economic cooling rather than a critical failure, he noted that investment decisions typically pause ahead of the national budget as businesses await policy clarity on taxes and duties.

He also criticised the misuse of duty-free import privileges by some companies operating in Export Processing Zones (EPZs) and special economic zones, alleging that surplus duty-free steel enters the domestic market to unfairly compete with local makers.

Despite weaker orders, Jowher said his company would survive, although business “could have been much better.”

Meanwhile, certain players are tapping into alternative sources of demand. Steelpac, an Energypac concern, is reporting steady order inflow driven primarily by defence infrastructure and solar energy developments.

The firm, which holds an annual production capacity of around 15,000 tonnes, is currently producing about 800 tonnes a month and executing a 2,500-tonne contract at the Rajendrapur Cantonment. Almoy Biswas, chief engineer at Steelpac, said rising inquiries from defence authorities and prospective utility-scale solar projects are expected to generate additional momentum.

Royal Footwear expects its profit to jump by 50-60% if it can utilise the funds raised from the capital market as planned, primarily by repaying bank loans, cutting interest costs, and ensuring a steady supply of raw materials and spare parts.

The 100% export-oriented footwear manufacturer also expects its revenue to grow by 20-30%, as the funds will strengthen its working capital and support production, the company said.

Royal Footwear is raising Tk12 crore through an Initial Qualified Investor Offer (IQIO) on the SME platform. The Bangladesh Securities and Exchange Commission approved the proposal at its 1,020th commission meeting held on 14 July.

As part of the offer, the company will issue 12 lakh shares to qualified investors at a face value of Tk10 each.

Factory running at full capacity

During a recent visit to the company's factory at Tilargati in Tongi, Gazipur, The Business Standard found all three production lines running at full capacity.

The factory manufactures footwear for a host of international brands, including Deichmann, Intersport, Cisaisa, Arena, RedTape, Kappa, Admiral, Furo Sports Shoes, Bata, Bartek, ZXY, CAT, Umbro, Lidl, Fila, LPP and CCC.

Royal Footwear exports its products to markets such as Germany, Italy, Poland, Switzerland, the United States and the United Arab Emirates. It also supplies footwear to ROSS, a leading footwear retailer in the US.

Around 750 workers were engaged in production during the visit. Company officials said the workforce swells to more than 1,200 during the winter season, when the factory runs in two shifts. The company has also set up a training centre for new workers.

Most of the funds to repay loans

According to the approved utilisation plan, Tk8 crore of the Tk12 crore proceeds will go towards repaying bank loans, Tk2 crore towards purchasing raw and packaging materials, Tk1.67 crore towards procuring spare parts, and the remaining Tk33 lakh towards IQIO-related expenses. This means two-thirds of the funds raised will be used to reduce bank debt.

The company expects the repayment to lower interest expenses and ease pressure on cash flow, while spending on raw materials and spare parts will help maintain uninterrupted production.

Royal Footwear Chairman Md Zakir Hossain Patwari said the capital market funds would strengthen the company's financial position and support production.

"Repaying a significant portion of our bank loans will reduce interest expenses. At the same time, ensuring adequate supplies of raw materials and spare parts will reduce the risk of production disruptions," he said.

The company expects these measures to boost profit by 50-60%, though actual growth will depend on production, export performance, interest expenses and international market demand.

Revenue may rise 20-30%

Company officials said the funds would improve working capital availability and production efficiency. While production capacity is not expected to grow at the same pace as profit, revenue could rise by around 20-30%, they said.

Royal Footwear currently runs three production lines and plans to set up a second production unit on 206 decimals of land in Ashulia.

The new unit is expected to boost production capacity, allowing the company to meet growing demand from existing buyers while taking on orders from new international customers.

Buyer requirements behind listing

According to company management, the decision to enter the capital market was driven not only by the need for funds but also by the requirements of international buyers.

European buyers are increasingly focusing on corporate governance, transparency, compliance and accountability alongside product quality, pricing and production capacity, the company said.

Officials said several international buyers had encouraged Royal Footwear to go public, noting that stronger governance and compliance standards can, in some cases, help suppliers secure larger orders from global buyers.

Patwari said the listing would strengthen the company's transparency, accountability and corporate governance, and help build greater confidence among international buyers.

Second fundraising attempt

Royal Footwear had initially applied for a similar fundraising proposal in 2024 but later withdrew it, citing political uncertainty, a slowing economy and an unfavourable business environment.

With the business environment now improving, the company has revived its fundraising plan.

Established in 2014, Royal Footwear currently exports footwear to several international markets and manufactures products for multiple global brands.

The company now plans to use capital market financing to cut financial costs, strengthen production capacity, meet international buyer requirements and expand its export business.

An immediate relief for industries, power plants and household consumers from fuel crunch comes as the closed floating storage and regasification unit (FSRU) resumes operation.

The much-cherished development came in the early hours of Thursday (August 6) after two weeks of ordeals following the tripping of the US company-owned facility after an accident.

Located on the Moheshkhali island in the Bay of Bengal, the unit resumed operation around 3:00am with successful repairing of one of its two boilers and was currently re-gasifying around 115 million cubic feet per day (mmcfd) of liquefied natural gas, Petrobangla spokesperson Tariqul Islam Khan told The Financial Express.

With the resumption of the FSRU operation, Bangladesh's overall LNG regasification from its two FSRUs reached around 620mmcfd, from previous day's 490mmcfd, he said.

Regasification of LNG from the damaged unit is expected to reach above 250mmcfd from August 7, and overall regasification to hit around 800mmcfd after ship-to-ship transfer of an LNG cargo into this floating terminal, he said.

"Full-scale operation of the accident-ridden FSRU might take one more week," said the Petrobangla official.

Gas supplies across the country have increased with the resumption of the FSRU, he added.

Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud told reporters on Thursday gas supply across the country would return to normal within the next two to three days as the FSRU has resumed operations.

The minister said eventually gas transmission would resume and the pressure in the gas network would gradually improve.

Replying to a question on when the gas supply would return to normal, he said, "It will take at least two to three days."

"We will be able to overcome the current situation," he added.

The minister said the temporary gas shortage had affected electricity generation, resulting in load shedding in different parts across the country, as several power plants were forced to shut down due to the shortage.

Industries, power plants, and household consumers have now started getting gas with higher pressure compared to the crisis period in the past two weeks.

The abrupt operation closure of the FSRU on July 21 affected delivery of two LNG cargoes carried by Gunvor Singapore Pte Ltd and TotalEnergies Gas & Power Ltd.

The vessel carrying Gunvor's LNG remained stranded in the sea for more than a week until July 29 while that of TotalEnergies LNG over a week since July 26 failing to deliver LNG to the accident-ridden FSRU.

State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) was, however, able to defer both cargoes following discussions with the suppliers.

The country's LNG-cargo purchases from spot market also dipped in August due to the FSRU accident as the South Asian country could purchase only two spot cargoes for August delivery windows with two more spot LNG tenders on offer, Khan said.

Bangladesh purchased eight spot LNG cargoes for July delivery and seven in each of the previous three months since April.

Bangladesh is currently struggling to meet its gas demand amid elevated LNG prices and as contracted long-term LNG suppliers continue to restrict scheduled cargo delivery.

Disruptions to long- and short-term LNG supplies due to the war in the Middle East coupled with restrictions on natural gas supplies after operation closure of the damaged FSRU dragged down the country's overall natural gas supply to about 2,140mmcfd on August 5, with 490mmcfd of regasified LNG, down from the pre-accident level of 2,642mmcfd, according to official Petrobangla data.

Bangladesh's natural gas demand is about 4,000mmcfd, according to Petrobangla.

Kaliakair Hi-Tech Park has so far received $283 million in investment out of proposed investments worth $1.636 billion, Posts, Telecommunications and Information Technology Minister Faqir Mahbub Anam said yesterday (8 August).

He said the state-run facility drew investment proposals worth $629 million from seven companies based in China, Japan, India, South Korea and the United States while visiting the country's first hi-tech park in Kaliakair to assess technology-based industrial development, investment and employment prospects.

Anam said multinational companies, including Google, Meta and TikTok, had also proposed investment in an AI data centre project planned by a US-based company.

"The centre is currently under construction," the minister said.

Officials said the inspection was part of a review of progress under the government's 180-day action plan.

Anam said initiatives had been taken to accelerate investment in the park and make domestic products more competitive globally under the government's "Made in Bangladesh" initiative.

"Fiscal and non-fiscal incentives are also being prepared for investors," he said.

An official statement said 85 companies had so far been allotted plots or space at the park, including seven foreign firms. Of them, 40 have started production or business operations, 28 are setting up plants and 17 are expected to begin construction soon.

The government has spent more than Tk500 crore on basic infrastructure at the park, while companies have invested around $283 million, equivalent to about Tk3,245 crore.

"If a proper business ecosystem is developed, the park could generate direct and indirect employment for around one lakh people," Anam said.

The statement said three mobile phone manufacturers, including Honor and Xiaomi, two laptop manufacturers, one ATM and cash recycler manufacturer, six fibre-optic cable manufacturers and three automobile manufacturers, including Hyundai, are operating at the park.

The park also produces IoT devices, routers, switches, CCTV equipment, air conditioners, refrigerators, home appliances, kidney dialysis machines, kiosks and ATM machines. Two companies are setting up data centres.

The government is preparing further measures to attract investment to hi-tech parks, including duty and tax benefits on capital machinery, VAT benefits on electricity and gas, and incentives for assemblers and emerging technology sectors.

Anam said long-term and predictable policy benefits alongside improved infrastructure could increase local production, reduce import dependence, expand exports and generate skilled employment.

He said the country's first hi-tech park was approved in February 2004 on 231.65 acres in Kaliakair. Another 97.33 acres were added in 2016.

Brent crude oil climbed more than $1 a barrel on Friday over ongoing uncertainty about the negotiations in progress that determine control of, and reopen, the key shipping artery of the Strait of Hormuz.

Brent crude futures settled at $83.55 a barrel, gaining $1.06, or 1.3 percent. West Texas Intermediate futures finished at $78.18 a barrel, up 89 cents, or 1.15 percent.

Oil futures settled more than $3 a barrel higher on Thursday as Iran reviewed a bill to ban US and Israeli vessels from the Strait of Hormuz, through which roughly a fifth of the world’s oil and liquefied natural gas normally passed before the war began at the end of February.

Oil prices fell earlier in the week as a possible solution to the conflict looked more likely, part of an on-again, off-again pattern that has persisted since the US and Israel jointly struck the nation in late February, igniting a conflict that has now stretched into a sixth month. Brent was on course for a weekly loss of more than 8 percent, while WTI lost more than 7 percent.

While this week's signals on a potential deal have sent a roller-coaster ride in market sentiment, the market remains in the dark as to what needs to happen for the agreement to be clinched, said Vandana Hari, founder of oil market analysis provider Vanda Insights.

"The market is trying to assess if an Iran-Oman agreement would allow a US-flagged vessel to transit the Strait of Hormuz," said Andrew Lipow, president of Lipow Oil Associates.

"Would it allow a US-owned vessel to go through? Would it allow a vessel headed for a US port to go through?"

Both Iran and Oman are said to have agreed on the route ships would take through the strait, which lies between their two countries. It is unclear if the US will agree to these terms.

Analysts also said that this week's developments have signalled that hostilities between Iran and the US are not yet over.

Iran is seeking fees of between 5 percent and 7 percent of the price of cargoes from ships using the strait, a senior Iranian official said.

Oman, meanwhile, is discussing fees of about 3 percent while Washington wants no fees at all.

"The longer the supply disruption goes, the longer the world's commercial reserves are being drawn down," he said.

Four industry sources have said the proposed deal is not easily workable because of US sanctions and restrictive insurance clauses on any payments.

"The structure of the Iran-Oman agreement in its current form and the power it yields to Iran is nothing that (US President Donald) Trump can accept politically," said Bjarne Schieldrop at SEB Research.

"Trump would face heavy political criticism at home if he did."

"We need that strait to be reopened fully," said John Kilduff, partner with Again Capital.

The continued uncertainty about the outcome of the war and the timing of its end keeps traders very anxious, Kilduff said.

Private-sector credit growth fell to a historic low of 4.47 percent in June, below Bangladesh Bank’s 5.5 percent target for the month.

The rate was 4.98 percent in May and 4.75 percent in April. In March, it had already hit a record monthly low of 4.72 percent.

Bangladesh Bank spokesperson Arief Hossain Khan said the central bank had cut its policy rate and begun implementing incentive packages to boost lending and economic activity.

But businesses say the energy crisis is choking demand.

Bangladesh Knitwear Manufacturers and Exporters Association President Mohammad Hatem said many factories were operating at less than half capacity, with some down to one-third.

“Buyers have started reducing orders until the situation improves. In this situation, there will be no demand for new loans,” he told bdnews24.com.

Outstanding private-sector credit stood at Tk 18.26 trillion in June, up 4.47 percent from Tk 17.48 trillion a year earlier.

Analysts say banks are accumulating liquidity as lending slows, while energy uncertainty keeps investment subdued and the economy struggles to regain momentum.

Bangladesh Bank’s latest quarterly report attributed weak credit demand partly to slowing economic activity and rising bad loans, which have crossed 32 percent, making banks more cautious about new lending.

Shahjalal Islami Bank Managing Director Mosleh Uddin Ahmed said high interest rates also mattered, but the energy crisis remained the main concern.

BIBM Director General Ejazul Islam said lower credit growth would not necessarily be harmful if lending flowed into productive sectors.

Bangladesh's readymade garment (RMG) shipments are struggling to keep pace with Vietnam, Cambodia, and Indonesia, with the trio recording growth in the US market during the first half of the 2026 calendar year.

Data analysis shows amid China's steep drop, Vietnam's gain of the top market share, as well as the steady growth of Cambodia and Indonesia, are a clear pivot by American brands toward Southeast Asia.

Bangladesh, being the second largest apparel exporter to the US, fetched $4.01 billion in the first half of 2026, down 5.58 per cent from $4.24 billion in the corresponding period of 2025, according to data released by the Office of Textiles and Apparel (OTEXA) on August 4.

Exporters attribute this decline to rising geopolitical tensions, US-Iran conflicts, and economic uncertainties.

weakening demand, which forced American consumers to prioritise essential spending and reduce apparel purchases.

Besides, Bangladesh is losing its competitiveness because of several domestic challenges, including higher energy costs, inadequate gas and electricity supply, rising bank lending rates, and increasing labour costs, all of which have pushed up overall production expenses, they note.

US apparel imports stood at $35.08 billion during January-June of 2026, marking a 7.71 per cent decline from $38.02 billion in the corresponding period of 2025.

The contraction in US retail demand has triggered major shifts across key Asian sourcing destinations.

Vietnam dethroned China as the top US apparel supplier, shipping goods worth $7.85 billion between January and June 2026, marking a modest year-on-year growth of 1.33 per cent.

Cambodia led all major supplying nations in percentage growth, with year-on-year exports expanding 12.61 per cent to $2.13 billion in this period.

Indonesia also posted gains, growing 3.67 per cent to $2.33 billion and moving ahead of India.

India registered a sharp decline in apparel shipments to the US, which dropped 25.19 per cent to $2.12 billion from $2.83 billion in the first half of last year.

China experienced a big decline, with shipments plummeting 37.65 per cent to $3.57 billion from $5.72 billion in the corresponding first six months of 2025.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan tells The Financial Express that Vietnam and Cambodia are ahead of Bangladesh in terms of lead time and value-added products.

Though they depend on imported raw materials, they get those within the shortest possible time from China because of their geographical proximity, he notes.

Besides, Vietnam has Chinese investments, which Bangladesh failed to attract due to infrastructure bottlenecks, frequent changes in policies, and political instabilities after the 2024 uprising, the BGMEA leader explains.

Indonesia is doing better because of its manmade fibre-based garment production, Khan says.

According to a recent study by the US Fashion Industry Association (USFIA), American buyers are aggressively consolidating their supplier bases to combat compounding global supply chain disruptions and navigate rising protectionist tariffs, regulatory demands, and fluctuating transpacific freight costs.