Disruption to shipping through the Strait of Hormuz has prompted oil-producing countries in the Gulf to accelerate plans for alternative export routes, with a series of pipeline projects announced or revived.

Here is a breakdown of the proposals.

REGIONAL PICTURE

A total of 14.95 million barrels per day (mbd) of crude oil was exported through the Strait of Hormuz in 2025, according to the International Energy Agency (IEA).

Iran exported around 1.69 mbd and is expected to continue relying on Hormuz over the long term given its effective control of the waterway, Andrew Wilson of BRS Shipbrokers told AFP.

“Iran is just going to produce as much as it can, ship as much to China as it can. It’s not really such an issue,” he said.

Of the remaining 13.26 mbd, as much as 11.5 mbd could eventually be rerouted by maximising existing pipeline capacity and completing planned projects, according to official announcements and industry experts.

SAUDI ARABIA

Before the war broke out in late February, Saudi Arabia transported around 2 mbd of crude through its East-West Pipeline linking Abqaiq, near the Gulf coast, with the Red Sea port of Yanbu, according to the IEA.

State oil giant Aramco said in March 2025 it had increased the pipeline’s capacity to 7 mbd, leaving up to 5 mbd of spare capacity. Riyadh is also planning a further expansion of up to 2 mbd, according to the US-based Institute for Energy Research (IER).

The IER said it was “unclear” whether this would involve upgrades to the existing line or construction of a parallel pipeline.

The project could potentially be completed by 2030/2031, Wilson told AFP.

UNITED ARAB EMIRATES

Before the conflict, the UAE exported around 1.1 mbd of crude through its Abu Dhabi Crude Oil Pipeline (ADCOP), which links inland oil fields with the port of Fujairah on the Gulf of Oman, bypassing the Strait of Hormuz.

The IEA said the pipeline had a capacity of 1.8 mbd, leaving an additional 0.7 mbd available.

The UAE said in May it was fast-tracking construction of a second pipeline that would run parallel to the existing route before extending to the country’s northern coast, allowing crude produced north of Hormuz to bypass the strait.

The project would double export capacity through Fujairah and is expected to enter service next year, according to the Abu Dhabi Media Office.

IRAQ

The US State Department said earlier in July that plans were under way to restore a major pipeline linking Iraq’s oil fields with Syria’s Mediterranean coast.

Washington is overseeing an international consortium “to execute the technical and financial aspects of this project”, which is expected to have an initial capacity of 2 mbd, the department said.

No timetable has been announced, however, and political and investment hurdles risk delaying the project, Wilson warned.

KUWAIT AND BAHRAIN

Neither Kuwait nor Bahrain currently has a pipeline route that bypasses Hormuz.

However, both have recently held discussions with Saudi Arabia on a possible connection to its pipeline network, according to the IER.

Depressed development works in the transition time are among reasons that diminished Bangladesh's Annual Development Programme (ADP)-implementation rate to a historic low of 67.52 per cent in the past fiscal year, latest official data showed.
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Officials think a dismal failure in the vital education sector in implementing the ADP dragged down the development-fund-spending rate in 2025-26.

Government ministries and agencies spent Tk 1.41 trillion worth of funds, 67.52 per cent of total Tk 2.089-trillion ADP outlays, in the just-concluded FY2026, according to data released Thursday by the Implementation Monitoring and Evaluation Division (IMED).

In the previous year, FY2025, the ADP-implementation rate was a bit higher at 68.18 per cent, the IMED data showed.

Development works even under the Covid-19 impact in FY2022 were recorded 92.74 per cent, but the rate went on a slide in the subsequent years.

The rates dropped to 85.17 per cent in the FY2023 and 80.63 per cent in FY2024, the IMED report showed.

The report highlights deepening challenges in the country's domestic fund utilisation and project management.

Government ministries and agencies spent Tk 842.10 billion or 65.79 per cent of their total Tk 1.28-trillion domestic-fund outlay, Tk 498.27 billion or 69.20 per cent of the Tk 720-billion outlay from the project aid, and Tk 70.35 billion or 78.73 per cent of the total Tk 89.36 billion from own resources by the public autonomous and semi-autonomous bodies, the official data showed.

IMED officials said the latest figures marked the second consecutive fiscal year when development spending remained below 70-percent mark, following a 68.18 per cent recorded in FY2024-25 and 67.52 per cent in FY2026.

Historically, ADP implementation rates in Bangladesh regularly exceeded 80 per cent. However, execution capabilities have deteriorated sharply over the past two years, culminating in the lowest execution performance in recent history.

According to the IMED, Technical and Madrasha Education Division, Primary and Mass Education Division, and Secondary and Higher Education Division under the Education Ministry executed only 50.33 per cent, 60.87 per cent and 66.30 per cent respectively during FY2026.

Among top 15 development budget-holders, Energy and Mineral Resources Division implemented the highest 93.73 per cent of its ADP works while Water Resources Ministry 88.77 per cent, Civil Aviation and Tourism Ministry 88.60 per cent, Agriculture Ministry 87.23 per cent, and Power Division of 83.73 per cent.

Officials said between FY2010 and FY2023, ADP implementation consistently ranged between 78 per cent and 96 per cent. Even during severe macroeconomic shocks, such as the initial outbreak of COVID-19 in FY2020, public spending reached over 80 per cent of the revised budget allocation.

The implementation benchmark dropped sharply below 70 per cent in FY2025 to 68.18 per cent and hit a rock-bottom 67.52 per cent in FY2026.

A senior IMED official says mass departures and reassignments of project directors (PDs) following the administrative changes after the August-5 changeover, increased scrutiny, mid-term evaluations, and suspension or downscaling of non-essential or low-priority projects, administrative machinery remaining occupied with state-level governance reforms and election management are some of reasons behind the "historically poor ADP-execution rate".

"Besides, the poor capacity of project-implementing agencies, the slower releases of external credit lines coupled with cautious domestic treasury releases amid austerity pursuit of the government in recent years have affected the overall execution," he adds.

Procurement bottlenecks, delayed tender evaluations, and unresolved land disputes continued to impede progress. Foreign contractor hesitancy and delayed disbursements of foreign aid further constrained megaproject delivery schedules, the IMED official further mentions.

Economists and government officials attribute the slow implementation to structural inefficiencies.

Ministries consistently struggle with timely land acquisition, lengthy procurement processes, and delays in foreign-fund mobilisation.

Policy Exchange Bangladesh Chairman Masrur Reaz has said the inability to utilise allocated development budgets directly impacts infrastructure growth, job creation, and overall economic momentum.

"Without drastic administrative reforms in project monitoring, the trend of under-utilisation is likely to persist in the future days too," he added.

SANEM Executive Director Professor Selim Raihan says implementation of the revised ADP reached just 67.52 percent of the revised allocation in FY2025-26, marking the weakest performance since 1973 and highlighting persistent shortcomings in Bangladesh's public investment management.

"The last interim government faced exceptional challenges, including political instability, law-and-order concerns, administrative disruptions, and the need to review ongoing development projects. However, these difficulties also exposed deep-rooted deficiencies in project design, procurement, institutional coordination, and execution."

Consequently, delays in project implementation have slowed infrastructure-and social-sector development, limited employment creation, weakened business confidence, and reduced the effectiveness of public expenditure in supporting economic growth, he explains the drawbacks.

After the February 2026 election, the newly elected government inherited a significant implementation backlog with limited time left in the fiscal year, the Dhaka University Economics professor has said.

Addressing this situation will require stronger administrative leadership, improved coordination among implementing agencies, expedited procurement and approval processes, and more effective monitoring to accelerate project execution, the SANEM ED suggests.

The FY2025-26 experience demonstrates that higher development allocations alone cannot deliver better outcomes unless accompanied by meaningful improvements in institutional capacity, governance, efficiency, and accountability, he observed.

Mercantile Bank PLC, a listed private commercial lender, has reported a consolidated net loss for the second quarter of 2026, driven by a dramatic collapse in its net interest income and deteriorating cash flows.

According to the bank's un-audited financial statements for the April-June period, the consolidated net loss stood at Tk7.70 crore. This marks a sharp reversal from the corresponding quarter in 2025, when the bank posted a healthy net profit of Tk108 crore.

Consequently, the loss per share for the quarter reached Tk0.07, a steep fall from the earnings per share (EPS) of Tk0.98 recorded a year earlier.

The bank's performance for the first half of the year (January-June) was equally subdued. While it managed to remain technically in the black with a consolidated net profit of Tk24.78 crore for the six-month period, this figure is a staggering 88% lower than the Tk201 crore profit reported in the first half of 2025. The half-yearly EPS settled at a mere Tk0.22, compared to Tk1.82 in the prior year.

Financial analysts point to the bank's core operations as the primary source of distress. Its net interest income – the difference between interest earned on loans and paid on deposits – plummeted by 69% to settle at Tk111 crore.

Furthermore, the bank's liquidity position saw a significant squeeze, with the consolidated net operating cash flow per share (NOCFPS) dropping by 79% to Tk0.74 at the end of June.

As of 30 June 2026, the bank's consolidated net asset value (NAV) per share stood at Tk24.30.

Mercantile Bank is currently trading in the 'Z' (junk) category on the stock exchanges, a relegation triggered by its failure to declare any dividends for two consecutive years.

On Thursday (30 July), the bank's shares closed at Tk7.50 on the Dhaka Stock Exchange, continuing to trade well below their face value of Tk10.

Prime Minister Tarique Rahman has told business leaders that the country's third floating LNG terminal (FSRU) will be dedicated exclusively to supplying uninterrupted gas to industries, as part of broader measures to ease the energy crisis and help achieve Bangladesh's $100 billion export target by 2030.

The government is considering importing gas in ISO containers for direct supply to industrial factories to mitigate the ongoing gas shortage. In addition, all business licences and approvals will be issued within 14 days to improve the ease of doing business.

The prime minister also assured business leaders that the damaged floating LNG terminal (FSRU), currently under repair, is expected to resume operations by 10 August, helping restore gas supply.

The commitments came during a meeting with the country's leading business leaders to discuss measures needed to raise Bangladesh's annual export earnings to $100 billion by 2030, up from $48 billion recorded in FY2025-26.

According to a PMO press release, the meeting discussed business expansion, foreign investment promotion and industrialisation.

Business leaders highlighted that the energy crisis is disrupting industrial production and discouraging new investment, urging the government to take immediate action.

Representing the business community, Apex Group Chairman Nasim Manzur presented key challenges facing the 10 priority export sectors identified by the government and proposed solutions. The prime minister assured entrepreneurs that the issues would be addressed, according to officials from the PMO, the Bangladesh Investment Development Authority (Bida), and participants at the meeting.

In response to business leaders' demand for a dedicated FSRU to ensure uninterrupted gas supply for industries, the meeting was told that the proposed third FSRU at Maheshkhali, already approved by the cabinet, will be used exclusively for industrial gas supply.

Bida also presented progress on the implementation of decisions taken at a previous meeting with business leaders held in April.

To encourage investment in the energy sector, the prime minister said investors in economic zones would receive priority land allocation, while those investing in solar power would have easier access to low-interest financing.

Business leaders also called for lower wheeling and cross-subsidy charges for using the electricity transmission and distribution network. The PMO said the proposed Open Access Tariff is currently under consideration by the Bangladesh Energy Regulatory Commission (BERC) after consultations with Bida and other stakeholders.

The Open Access Tariff policy would allow large industrial and commercial consumers to purchase electricity directly from independent power producers.

The PMO also plans to allow duty-free imports of batteries used for solar power storage and provide policy support for local lithium battery manufacturing. Although customs duties on solar equipment were reduced in the current budget, a 15% VAT and 2% advance income tax remain in place.

The meeting also decided to introduce 24-hour, seven-day customs services at Chattogram Port and Hazrat Shahjalal International Airport. Customs, ports and related banking services will be declared "essential services" to facilitate uninterrupted import and export operations.

After the meeting, Moynul Islam, chairman of Monno Ceramic Industries and president of the Bangladesh Ceramic Manufacturers and Exporters Association, told The Business Standard that discussions focused heavily on the energy crisis.

"The prime minister said the third FSRU will be dedicated to ensuring uninterrupted gas supply to industries. He also stressed importing gas in ISO containers to maintain industrial production and exports," he said.

Moynul added that the government sought business leaders' recommendations on how to achieve the $100 billion export target by 2030. Outside the readymade garments sector, each of the 10 priority export sectors has been assigned a target of $3 billion in exports, with Vietnam identified as the benchmark. Discussions also covered faster customs clearance, improved bonded warehouse facilities, and quicker approvals from Bida and other government agencies.

Mustafa Kamal, chairman of Meghna Group of Industries (MGI), said follow-up meetings between the prime minister and business leaders will now be held every two months. He added that entrepreneurs expressed satisfaction with the government's investment-friendly approach and noted that 8-9 of the 20 decisions taken at the April meeting have already been implemented.

Business leaders who attended the meeting said the discussions centred on policy measures needed to support the government's 10 priority export sectors. They warned that persistent gas and electricity shortages would discourage both local and foreign investment and undermine exports.

One participant, speaking on condition of anonymity, said business leaders highlighted tariff and non-tariff barriers alongside energy shortages. "The prime minister ordered immediate action on some issues, and ministers and agency heads present assured us they would resolve them quickly," he said.

Another participant said the pharmaceutical sector received special attention during the discussions.

"We discussed the challenges Bangladesh will face after graduating from least-developed country (LDC) status, particularly the possible loss of patent-related benefits for the pharmaceutical sector. We emphasised accelerating work on the API Industrial Park and ensuring policy support for local API production," he said.

Business leaders also urged the government to facilitate international certification for pharmaceutical exports by encouraging certification authorities from the US, UK and other developed countries to operate in Bangladesh.

They further proposed visa-free entry for investors from the UK, US, Japan and South Korea, along with a streamlined online visa system for foreign investors.

PMO spokesperson Mahdi Amin later told reporters that the government has decided to introduce uninterrupted 24-hour services at ports to boost import and export activities and pledged full policy support for the private sector to overcome the country's prolonged economic slowdown.

He said the government is also restructuring key state institutions after years of "authoritarian rule" and held detailed discussions with business leaders on resolving critical issues, particularly in the power and energy sectors.

E-visas for citizens of select countries

The PMO has decided to introduce e-visas for citizens of strategically important countries and waive visa fees for investors from priority nations. According to discussions at the meeting, Bida has proposed waiving on-arrival visa fees for investors from the Netherlands, the United Kingdom, China, Singapore and South Korea.

Business approvals within 14 days

The PMO told business leaders that all business licences and regulatory approvals will be issued within 14 days to improve the investment climate.

The government also plans to develop Bogura as a hub for the light engineering industry, with Beza arranging site visits for entrepreneurs.

At the API Industrial Park in Munshiganj, a 50-bigha site has been earmarked for a coal-generated steam facility, with the location already selected following a field inspection.

ICT investors will receive priority land and space allocation in economic zones.

Rana Automobiles Chairman Hafizur Rahman Khan proposed establishing testing and certification facilities for automobile components through BSTI and other relevant agencies.

"We all acknowledge there are many challenges," Tarique Rahman said at the meeting. "The government has at least demonstrated that we are trying. The government has not yet completed six months in office, but we have already held several meetings, including our first meeting with you. We are working sector by sector to resolve the problems."

The meeting was attended by Finance Minister Amir Khosru Mahmud Chowdhury; Home Minister Salahuddin Ahmed; Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmud Tuku; Commerce Minister Khandaker Abdul Muqtadir; Road Transport and Bridges Minister Sheikh Robiul Alam; the prime minister's adviser on finance and planning Rashed Al Mahmud Titumir; Bida Executive Chairman Ashik Chowdhury; Bangladesh Bank Governor Mostaqur Rahman; senior government officials and representatives of major business groups.

The listed banking sector posted a sharply divided performance in the first half (January-June) of 2026, as robust treasury returns buoyed strong performers while mounting non-performing loans and high deposit costs pushed several major lenders into deep losses.

Out of the 36 banks listed on tyhe stock exchanges, 14 posted a surge in net profit year-on-year, five experienced profit declines, and six incurred massive losses.

Meanwhile, trading remains suspended for five banks that are undergoing merger processes with Sammilito Bank, while another five lenders have yet to release their financial statements.

Industry insiders attributed the profitability growth among top performers largely to lucrative investment income generated from government risk-free securities.

However, the broader sector continues to wrestle with a tough macroeconomic environment characterised by elevated interest rates, a sluggish economy, and muted private sector credit growth.

Top earners capitalise on yields and growth

BRAC Bank emerged as the top earner in H1 2026, logging a consolidated profit of Tk1,423 crore, reflecting a massive 57% year-on-year growth. Pubali Bank secured the second spot with Tk685 crore in profit (up 19%), followed by City Bank with Tk527 crore (up 75%), Dutch-Bangla Bank with Tk442 crore (up 319%), and Eastern Bank with Tk439 crore (up 25%).

Speaking to The Business Standard, BRAC Bank Managing Director and CEO Tareq Refat Ullah Khan said the bank currently manages a combined fund of nearly Tk1.70 lakh crore across deposits and assets.

"Our portfolio is expanding every year," Khan said. "Over the past year, our deposits grew by nearly 25%, surpassing Tk95,000 crore, while assets expanded around 18% to cross Tk76,000 crore – achieving growth well above the market average."

He added that operational efficiency improved significantly, trimming the bank's cost-to-income ratio from 48% to 42%, while its non-performing loan (NPL) ratio declined to 2.03% from 2.27% over six months.

City Bank similarly attributed its sharp profit rise to strong investment yields alongside healthy growth in commission and fee income.

Other banks recording profit increases during the period include Jamuna Bank, SBAC Bank, NCC Bank, Uttara Bank, NRBC Bank, Southeast Bank, Midland Bank, United Commercial Bank, Shahjalal Islami Bank, and NRB Bank. Conversely, profits dropped at One Bank, Mutual Trust Bank, Standard Bank, Bank Asia, and Trust Bank.

Suspense income and bad loans squeeze bottom lines

On the flip side, six lenders reported severe consolidated net losses, led by National Bank with a loss of Tk2,286 crore. AB Bank followed with Tk1,936 crore in loss, IFIC Bank at Tk1,668 crore, Islami Bank at Tk1,316 crore, Rupali Bank at Tk640 crore, and Premier Bank.

National Bank explained in its disclosure that its deficit stemmed from an inability to recognise interest income on delinquent and rescheduled loans with grace periods, even as deposit interest obligations remained fixed.

Islami Bank Acting Managing Director Md Altaf Hossain noted that a large non-income-generating investment exposure to a major group hit earnings, as Shariah rules mandate holding unrealised yields in suspense accounts rather than recognising them as income. He added that future recoveries could significantly reverse the bank's fortunes.

Petrobangla has said the government currently has no plan to increase gas prices, seeking to dispel confusion created by recent media reports about a possible tariff hike.

In a statement issued today (1 August), the state-owned corporation said, "Following recent reports in different media outlets regarding a gas price increase, it is being informed that the government has no plan at this moment to raise gas prices. All concerned are requested not to be confused over the issue."

The clarification came after reports emerged that Petrobangla had sent a proposal to the Energy and Mineral Resources Division (EMRD) seeking higher gas prices for compressed natural gas (CNG) used in transport and gas supplied to power plants.

According to those reports, the proposal was aimed at narrowing the widening gap between the cost of imported liquefied natural gas (LNG) and regulated domestic gas tariffs, as the government continues to grapple with mounting subsidy pressures.

The issue has drawn attention at a time when the country is also facing a severe gas supply crunch following a fire at Excelerate Energy's floating storage and regasification unit (FSRU) off Moheshkhali.

The incident significantly reduced LNG regasification capacity and disrupted gas supplies to industries, power plants and households.

India today effected a sharp cut in the prices of commercial LPG used in hotels and restaurants while hiking aviation turbine fuel (ATF) prices in line with divergent trends in benchmark rates.

The commercial LPG prices were slashed by Rs 192 per 19-kg cylinder.

ATF rates have been raised to Rs 115 per litre from Rs 110, according to price information from state-owned oil firms.

This is the second straight monthly reduction in commercial LPG rates following a Rs 183.5 cut on 1 July. In the case of ATF, the revision reverses the reduction by a similar proportion that was effected on 1 July.

The revision in ATF prices does not apply to jet fuel supplied for international flights. Fuel for overseas routes is priced separately, and airlines operating such services will continue to purchase ATF under the prevailing international pricing mechanism.

US-Bangla Airlines yesterday announced the acquisition of 21 new Boeing aircraft in a deal worth about $1.5 billion, calling it “one of the most significant fleet expansion programmes in the country’s aviation history.”

The announcement was made at an event titled “Beyond with Boeing” at the Sheraton Dhaka.

The new fleet will include 15 Boeing 737-8 aircraft and six Boeing 737-800 aircraft. All are scheduled to be delivered in phases by the end of 2027 under a leasing programme.

In a statement, the private airline said the expanded fleet would allow it to launch flights to several new destinations, including Bengaluru and Hyderabad in India; Colombo in Sri Lanka; Kathmandu in Nepal; Kunming, Shenzhen and Beijing in China; Johor Bahru and Penang in Malaysia; destinations in South Korea and Japan; Kuwait; Bahrain; Madinah and Dammam in Saudi Arabia; and Salalah in Oman.

“This investment represents much more than fleet expansion. It reflects our long-term vision to transform US-Bangla from an airline into a fully integrated global aviation group. We are investing in aircraft, people, technology, training, maintenance, cargo, catering and infrastructure to support the sustainable growth of Bangladesh’s aviation sector,” said Mohammad Abdullah Al Mamun, managing director of US-Bangla Group and US-Bangla Airlines.

Mamun said foreign airlines still carry nearly 70 percent of passengers on Bangladesh’s international routes, indicating a significant opportunity for the country’s aviation industry.

United States Ambassador Brent T Christensen described the announcement as a historic milestone and called Boeing Bangladesh’s “best business case”.

“Perhaps even more important is the investment in people. US-Bangla’s plan to send about 200 Bangladeshi pilots to the US for advanced training represents an investment in the next generation of aviation professionals,” he said.

“Today’s ceremony also highlights something larger: the growing economic relationship between the US and Bangladesh. American companies offer innovation, technology, high-quality products and long-term partnerships. Bangladeshi companies likewise offer entrepreneurial spirit, determination and a vision for growth,” the ambassador added.

Humaiun Kobir, the prime minister’s foreign affairs adviser, spoke about the challenges facing the aviation sector. He said the industry was seeking tax relief and pledged the government’s financial support.

Rashiduzzaman Millat, state minister for civil aviation and tourism, said that with the opening of the third terminal at Dhaka airport, Bangladesh aims to serve 24 million passengers a year.

He added that Biman Bangladesh Airlines is expanding its fleet with 14 new Boeing aircraft. The growth of both airlines will strengthen the country’s aviation industry and improve services for passengers at home and abroad.

Air Vice Marshal Md Mostafa Mahmood Siddiq, chairman of the Civil Aviation Authority of Bangladesh, said increasing the share of Bangladeshi airlines in the country’s passenger traffic is one of the government’s national priorities.

Paul Righi, vice-president of sales and marketing for Eurasia, India and South Asia at Boeing, also spoke at the event.

Foreign commercial banks operating in Bangladesh saw their credit portfolio contract in 2025 despite a modest rise in net profits, as institutions maintained a cautious lending strategy amid shifting macroeconomic conditions, central bank data showed.

According to a report by the Statistics Department of Bangladesh Bank covering July-December 2025, total loans and advances extended by foreign banks fell 11.3% year-on-year to Tk46,122 crore at the end of December 2025.

Their share of total credit in the domestic banking sector subsequently slipped to 2.6%, down from 3.1% in December 2024.

While broad credit participation declined, foreign banks retained significant dominance in international trade settlement.

Foreign lenders processed $4.12 billion in export receipts, accounting for 18.8% of Bangladesh's total export receipts and $4.29 billion in import payments, equivalent to 13.1% of the country's imports.

Net profit has also increased despite a decline in credit. Post-tax profit rose to nearly Tk3,739 crore in the second half of 2025, up from Tk3,557 crore during the same period a year ago, aided by reduced tax liabilities.

Outward profit and earnings remittances by foreign banks grew to Tk1,314 crore, up from Tk577 crore in the same period a year earlier. Reinvested earnings fell by more than half to Tk2,096 crore.

Deposits held at foreign banks stood at Tk87,568 crore, reducing their total market share slightly from 4.6% to 4.2%.

Though non-performing loans (NPL) ticked up to 5.9% in December 2025 from 4.9% in December 2024, it remains far lower than the banking sector's average of over 32%.

Also, foreign banks remain among the most heavily capitalised in the region, boasting a Capital Adequacy Ratio of 41.05% and a Liquidity Coverage Ratio of 458.56%, far above regulatory baselines.

IPDC Finance PLC, the country's first private non-bank financial institution, has reported a robust 37.6% year-on-year growth in its net profit after tax, reaching Tk20.70 crore during the first half of 2026.

The company's strong financial performance was primarily underpinned by a significant increase in net interest income, robust investment earnings from government securities, and a disciplined approach to cost management, according to a press release.

According to the financial results approved by its board on 28 July, IPDC maintained steady business momentum despite persistent domestic and global economic headwinds. The company's total operating income rose by 29% to reach Tk206 crore during the January-June period.

A significant portion of this growth was driven by core financing activities, which accounted for 60% of the total operating income, reflecting the institution's focus on sustainable long-term growth.

Rizwan Dawood Shams, managing director of IPDC Finance, attributed the success to the trust placed in the institution by its customers, stating that the company remains committed to the highest standards of governance and operational excellence.

IPDC Finance Chairman Ariful Islam added that the performance underscores the strength of the institution's core business model, as the majority of income continues to be generated from financing businesses and individuals, thereby fostering actual economic value and sustainable growth.

The company's loan portfolio stood at Tk7,417 crore as of 30 June 2026. Simultaneously, total deposits grew by 8% from December 2025 to reach Tk6,716 crore, a clear indicator of sustained customer confidence and a stable funding base.

On the investment front, the company expanded its portfolio to Tk1,534 crore, supported by strategic allocations in treasury instruments and other high-yield investments, read the press release.

Furthermore, investment income skyrocketed by 39.2% to Tk78.60 crore, as the company successfully leveraged the treasury market and higher yields on government securities.

The NBFI's profitability metrics also saw significant improvement, with earnings per share (EPS) rising to Tk0.48 from Tk0.35 in the corresponding period of 2025.

The net operating cash flow per share (NOCFPS) improved to Tk12.02, up from Tk8.12 a year earlier, highlighting stronger liquidity generation. Net Asset Value (NAV) per share remained stable at Tk17.01.

Unilever Consumer Care Limited, maker of health food drinks Horlicks and Boost, reported a sharp earnings decline in the first half of 2026 as slowing sales and persistently high food inflation squeezed consumer spending.

According to its unaudited financial statements, net profit after tax fell 48% year-on-year to Tk19.9 crore in January-June, while revenue dropped 8% to Tk141 crore. Earnings per share (EPS) stood at Tk10.33.

The decline was driven by a 9.63% fall in its core health food drinks segment. Revenue from glucose powder, however, rose 2% to Tk19.37 crore, providing a minor cushion against the broader slowdown.

The second quarter was weaker still. Revenue fell 8% year-on-year to Tk72.96 crore, while net profit plunged 68% to Tk7.79 crore.

In a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (29 July), the company attributed the EPS decline to lower sales and a "high-base effect." In the corresponding period last year, it recognised a one-off gain after reassessing trademark and technology royalty obligations, making this year's comparison significantly weaker.

Market insiders said persistently high food inflation has forced many households to cut spending on nutritional supplements and premium beverages, weighing on demand.

Despite the profit decline, net operating cash flow per share improved to Tk30.13 due to lower operating cash outflows after most Usance Payable at Sight (UPAS) letters of credit were settled last year. Net asset value per share fell 27% to Tk84.62 following the FY2025 dividend payout.

Shares of the company closed 0.98% lower at Tk2,048 today, leaving its market capitalisation at Tk3,947 crore.

The company also announced several corporate decisions. Ruhul Quddus Khan, managing director of Unilever Bangladesh Limited, was appointed chairman of Unilever Consumer Care for a three-year term effective 28 July, replacing Masud Khan, who resigned after becoming chairman of the Bangladesh Securities and Exchange Commission.

Samsuddoha Nayeem was appointed head of finance and Sharmin Akter company secretary.

The board also approved an unsecured intercompany loan facility of up to Tk150 crore for related party Unilever Bangladesh Limited to support working capital. The facility will remain available for 24 months, with each drawdown capped at six months, and will be extended on arm's-length terms, meaning the transaction will be conducted as if between unrelated parties.

Listed multinational companies delivered mixed but largely weaker earnings in the first half (January-June) of 2026 as persistent inflation, subdued consumer demand and higher operating costs continued to squeeze profit margins.
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Market analysts said prolonged inflation eroded consumers' purchasing power, while elevated energy costs and sluggish economic activity weighed on sales growth and corporate profitability.

Economic activity has remained subdued since the political transition in August 2024, with tight monetary and fiscal policies further dampening private investment and household spending.

Akramul Alam, head of research at Royal Capital, said overall economic activity remained sluggish amid lingering macroeconomic challenges, while higher input costs increased operating expenses, hurting the profitability of multinational companies.

He also said the tight monetary and fiscal stance maintained by Bangladesh Bank since the political transition continued to suppress demand.

Eleven listed multinational companies that follow the January-December financial year have so far released their financial results for the January-June period of 2026.

Of them, four reported lower profits, one remained in the red due to a heavy debt burden and another slipped into losses. Meanwhile, four posted profit growth and one returned to profitability.

Marico Bangladesh and Berger Paints Bangladesh were excluded from the comparison as they follow the April-March financial year instead of the January-December calendar year.

The combined net profit of the 11 companies edged up marginally to Tk 26.07 billion in the first half of 2026 from Tk 25.96 billion in the same period a year earlier.

Their aggregate revenue remained almost flat at Tk 219.40 billion, compared with Tk 219.56 billion in the corresponding period of 2025, according to their financial statements.

As multinational firms operate across diverse sectors, the reasons behind profit erosion vary from company to company, analysts say.

Higher finance costs significantly affected companies with large debt burdens, while lower government spending under the Annual Development Programme (ADP) weighed on cement manufacturers by reducing construction activity.

Singer Bangladesh, for example, remained in the red, reporting a loss of Tk 422 million in the January-June this year, although sales grew 3.4 per cent to Tk 14.15 billion during the time.

The company, however, said sales remained below expectations as persistently high inflation, geopolitical uncertainties and adverse weather conditions continued to dampen demand for consumer electronics and home appliances.

Broader slowdown in the construction industry and reduced public sector spending hit cement manufacturers. As a result, Heidelberg Cement entered into fresh losses, reporting a loss of Tk 111 million in the January-June this year while sales dropped 11 per cent during the time.

LafargeHolcim Bangladesh, another multinational cement maker, also saw 8 per cent lower profit to Tk 2.17 billion in the first half of 2026.

The multinational companies failed to see growth in revenue and profit mainly because of macroeconomic worries at a time when consumers had little disposable income with inflation hovering over 9 per cent.

Bangladesh's top two mobile operators --- Grameenphone and Robi Axiata, posted contrasting earnings in the January-June this year, owing to diverging cost structures and financial strategies amid a wider economic slowdown.

Robi's profit surged 29 per cent to Tk 4.95 billion in the January-June 2026, driven by strong revenue growth, higher data consumption and an expanding subscriber base.

On the other hand, GP's profit dropped 6 per cent year-on-year to Tk 14.21 billion while revenue registered 2.5 per cent de-growth as the challenging macroeconomic environment weighed on business performance.

GP Chief Executive Officer Yasir Azman said the company demonstrated operational resilience despite a difficult business environment.

"We maintained a healthy EBITDA margin of around 58 per cent, demonstrating continued cost discipline and operational efficiency despite higher investments and a challenging operating environment," he said in a statement.

Unilever Consumer Care experienced a 48 per cent decline in profit year-on-year to Tk 119 million in January-June 2026 because of various factors including a fall in revenue earnings.

British American Tobacco Bangladesh posted a marginal 0.5 per cent decline in profit to Tk 4.13 billion, while net revenue fell 6 per cent to Tk 38.31 billion amid persistently high inflation.

However, Bata Shoe Company (Bangladesh) posted an impressive 86 per cent year-on-year profit growth to Tk 504 million in the first half of 2026, supported by stronger sales and improved operating cost management.

The footwear manufacturer's revenue rose 10 per cent to Tk 5.68 billion, driven primarily by Eid festive sales, supported by new product assortments and improved customer response to updated designs, said the company in its earnings note.

Reckitt Benckiser (Bangladesh) secured 4 per cent year-on-year growth in profit to Tk 304 million in January-June 2026, despite 2 per cent fall in sales to Tk 2.75 billion during the time.

Akramul Alam, head of research at Royal Capital, said the pace of recovery in corporate earnings would largely depend on easing inflation, stronger consumer confidence and a sustained rebound in economic activity over the coming months.

Net sales of National Savings Certificates (NSCs) dropped sharply in May 2026, reflecting weaker investor demand for the government-run instruments.
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According to latest Bangladesh Bank (BB) data, the net sales of savings and investment tools fell by 45.4 per cent to Tk 12.34 billion in May from Tk 22.60 billion in April.

The figure was also lower than that of Tk 15.37 billion in May 2025.

On the other hand, the sales of NSCs stood at only Tk 8.05 billion during the first 11 months (July-May) of FY2025-26.

The volume of sales stood at negative Tk 21.35 billion in March 2026, following a deficit of Tk 11.65 billion in February and Tk 18.51 billion in January.

Meanwhile, the outstanding balance of government savings instruments edged up to Tk 3.34 trillion at the end of May 2026 from Tk 3.33 trillion a month earlier.

On a yearly basis, the deficit in the NSC sales declined significantly. In FY'25, the net sales showed a deficit of Tk 60.63 billion, compared to a much larger deficit of Tk 211.24 billion in FY24.

Although such trend indicates a stabilisation, the sector remains under pressure.

Market insiders said such a downward trend in the net sales in May reflected continued weak demand for savings instruments, despite showing an improvement from the sharp deficits earlier this year.

They noted that although the overall shortfall narrowed compared with that of the previous fiscal year, investor appetite for the government-backed savings instruments remained subdued.

However, the introduction of the National Savings Certificates Online Management System in 2019, which requires e-TIN and National ID verification, resulted in the participation of institutional and high-value investors in this sector.

At the same time, rising interest rates also made deposits more attractive in the banking sector, while inflation eroded actual returns from the fixed-income savings instruments.

Experts said higher deposit rates offered by banks and persistently high inflation has made NSCs less attractive for the investors.

Dr Masrur Reaz, Chairman of Policy Exchange Bangladesh, said the slowdown in the NSC sales reflects changing investment preferences as higher deposit rates in the banking sector have made bank savings products more competitive.

Tighter compliance requirements under the online NSC management system have also reduced participation by large investors, he pointed out.

Dr Reaz said the recent improvement in net sales compared with the previous fiscal year suggests some stabilisation, but sustained demand for savings certificates will depend on inflation easing and the relative attractiveness of returns compared with other financial instruments.

Depositors of Sammilito Islami Bank will now be able to withdraw up to Tk10 lakh for emergency purposes, following a revision to Bangladesh Bank's withdrawal scheme for the merged Islamic lender.

The decision was approved at a meeting of the Bangladesh Bank board today (29 July), chaired by Governor Mostakur Rahman.

Previously, the scheme allowed withdrawals only for a depositor's own medical treatment.

Under the revised rules, depositors may also access funds for the medical treatment of immediate family members - including parents, children, siblings and spouses - as well as for other emergency needs.

The central bank has also decided that depositors with fixed deposits of more than one year will be able to withdraw their full savings after completing two years.

In addition, Bangladesh Bank is expected to remove the administrator from Sammilito Islami Bank by August.

Sammilito Islami Bank depositors can withdraw up to Tk10 lakh for medical treatment: BB
According to officials familiar with the meeting, the revised scheme was introduced after the central bank received widespread feedback that many depositors needed access to their savings for urgent expenses beyond medical treatment.

"A large number of depositors needed money for emergency purposes other than medical treatment, but the previous scheme did not allow such withdrawals. The revised scheme addresses that issue," a Bangladesh Bank official told The Business Standard.

'Unable to withdraw our own money, we are living in hardship,' say Sammilito Islami Bank depositors
Sammilito Islami Bank was established last year after the interim government merged five Shariah-based banks - EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank - which had been facing severe financial distress.

According to the central Bank, the banks had disbursed loans worth thousands of crores of taka without adequate collateral under their previous management, triggering a severe liquidity crisis and making it difficult to repay depositors.

The merged bank has a paid-up capital of Tk35,000 crore, of which the government has contributed Tk20,000 crore. The remaining Tk15,000 crore will be converted into shares for depositors.

Separately, the Deposit Insurance Trust Fund (DITF) has been providing up to Tk2 lakh to eligible depositors.

Bangladesh Bank said 8.22 million depositors have so far received Tk3,887 crore under the programme, including around 350,000 customers of First Security Islami Bank, who received approximately Tk1,600 crore.

Central bank data show that the five merged banks had outstanding loans of Tk1.95 lakh crore at the end of December.

Against those loans, collateral was valued at only Tk47,900 crore, or 24.56% of the total loan portfolio. Their combined non-performing loans currently stand at Tk1.705 lakh crore, equivalent to 87.43% of outstanding loans.

The government has approved the import of refined petroleum products worth Tk16,088.52 crore for July-December of FY2026-27 under government-to-government agreements with six state-owned foreign suppliers.

The decision was taken at the 33rd meeting of the Cabinet Committee on Government Purchase, chaired by Finance Minister Amir Khosru Mahmud Chowdhury at the Cabinet Division conference room in the Secretariat today (29 July).

According to the Cabinet Division, the Energy and Mineral Resources Division submitted the proposal based on predetermined premiums, import volumes and prevailing international reference prices.

The six suppliers are the UAE's Enoc, China's PetroChina and Unipec, India's Indian Oil Corporation Limited, Thailand's OQT and Indonesia's BSP.

Other approvals

The committee approved a Tk125.99 crore proposal under the Local Government Engineering Department's Resilient Infrastructure for Adaptation and Vulnerability Reduction, or RIVER, project.

The project will construct 15 government primary school-cum-flood shelters in Bogura with financing from the World Bank and the Bangladesh government.

The committee also approved Tk49.14 crore for constructing a fertiliser buffer warehouse with a capacity of 10,000 tonnes in Lakshmipur.

It also approved a revised levelised tariff for electricity purchased from the Ashuganj 450MW Combined Cycle North Power Plant, operated by Ashuganj Power Station Company Limited.

The revised tariff was set at 4.0945 US cents per kilowatt-hour, equivalent to Tk5.0281 per unit.

The committee also approved three procurement proposals submitted by the Bangladesh Economic Zones Authority.

These included a Tk123.34 crore contract for Monico Limited to construct road networks in sub-zones 6, 7, 11 and 18 of the National Special Economic Zone in Mirsarai, Chattogram.

Oil ​prices rose by about $3 a barrel on Wednesday after joint strikes in Iraq by the ‌United States and Saudi Arabia, and the interception of Iran's ballistic missiles aimed at US forces in the Middle East, while US crude inventories shrank.

Brent futures increased by $3.15, or 3.8 percent, to $87.24 a barrel by 0520 GMT, while US West Texas Intermediate (WTI) crude rose $2.73, ​or 3.4 percent, to $81.99 a barrel.
"Renewed strength comes after the US said it intercepted a surprise attack on ​US troops," ING analysts said in a note, adding that the latest developments dampen expectations ⁠for a swift de-escalation in the Gulf.The United States and Saudi Arabia launched strikes on Iran-backed groups in Iraq ​on Wednesday, blaming them for drone attacks on Saudi oil facilities, prompting Iran to warn that blaming it for ​such attacks was a "major miscalculation".The strikes came hours after the US military said it averted a surprise Iranian attack on US troops in the region.

Just five commodity ships passed through the Strait of Hormuz on Tuesday, where tanker traffic remains low.

Oman presented Iran with a plan ​backed by Gulf states to manage the waterway, including collecting voluntary fees for its use, a Gulf source ​and a Western diplomat told Reuters on Tuesday.

But Tehran has ruled out Oman's proposal for regional joint management of the waterway, which ‌carried a ⁠fifth of global crude oil and natural gas shipments before the war, ruling out chances of success, a senior Iranian official said on Wednesday.

"We believe Brent oil prices will continue to whipsaw in the $80-$100 per barrel range in the near term as the conflict ebbs and flows in the Middle East," said Suvro Sarkar, head of ​energy research at DBS Bank.

The ​situation has escalated after ⁠US President Donald Trump signalled a return to diplomacy in the week, he added.

"This series of stop-start negotiations means a complete removal of the Strait of Hormuz blockade ​is not achieved, and oil prices could see higher floor of around $80 per barrel ​even under ⁠a de-escalation scenario."

US crude inventories fell by about 3.3 million barrels in the week ended July 24, market sources said on Tuesday, citing data from the American Petroleum Institute.

Official inventory data from the Energy Information Administration is due later on Wednesday.

Further ⁠supporting ​prices, OPEC+ is likely to halt oil output increases for three months starting ​in October, sources told Reuters, after the producer group completes the scheduled return of barrels following voluntary cuts.

Bangladesh Bank (BB) has instructed banks not to provide any policy support or incentives to borrowers until they withdraw lawsuits filed against the government, the central bank, or the concerned banks.

The central bank issued a circular in this regard yesterday, saying the directive aims to reduce litigation in the banking sector and ensure that policy support reaches borrowers free from ongoing legal disputes with public authorities or banks.

The circular said Bangladesh Bank has introduced various policy measures to boost private investment, generate employment, and promote sustainable economic growth by increasing credit flow to productive sectors.

Under these initiatives, borrowers in export-oriented industries, agriculture, cottage, micro, small and medium enterprises (CMSMEs), and other sectors have been receiving various incentives and policy support through banks.

However, the central bank observed that some borrowers have been receiving such support while simultaneously pursuing writ petitions and other legal cases against the government, Bangladesh Bank, and the respective banks.

Under the new directive, banks must verify whether an applicant has any pending writ petition or other lawsuit against the government, Bangladesh Bank, or the concerned bank before extending any incentive package or policy support announced by the government or the central bank.

If any such cases exist, the borrower must withdraw them before the application can be considered.

Banks have also been instructed to obtain affidavits from applicants declaring that they have no pending legal cases against the government, Bangladesh Bank, or the relevant bank.

Applicants who have withdrawn cases must submit a list of those cases along with their applications.

The directive, issued under Section 45 of the Bank Companies Act, 1991, takes immediate effect.

LafargeHolcim Bangladesh PLC has reported a resilient financial performance for the second quarter ended June 2026, with its net profit after tax rising by 8% year-on-year to reach Tk104.5 crore.

The multinational cement manufacturer's board today (29 July) approved the unaudited financial statements for the first half of 2026, reporting a strong second-quarter rebound despite persistent inflation and elevated energy costs.

According to the financial statements, April-June revenue rose 14% year-on-year to Tk739.7 crore from Tk646.6 crore, driven by strategic price adjustments and strong demand for the company's value-added products.
The improved performance also lifted operating earnings before interest and taxes (EBIT) by 18% to Tk140.6 crore, enabling the company to maintain healthy margins despite macroeconomic headwinds.

Despite the robust second quarter, the first-half results continued to reflect the impact of earlier economic pressures. Net sales for January-June increased 3% year-on-year to Tk1,543.6 crore from Tk1,498.1 crore in the same period last year.

However, the consolidated net profit after tax for the first half fell by 8% to settle at Tk216.6 crore, and earnings per share (EPS) declined to Tk1.87 from Tk2.03 in the previous year.

Iqbal Chowdhury, chief executive officer of LafargeHolcim Bangladesh, said the company's performance reflects its strong brand equity and ability to adapt through innovation and pricing discipline.

He highlighted decisive measures to protect margins from rising gas tariffs and market volatility, including a successful energy transition through Geocycle, its waste management arm, which co-processed nearly 21,000 tonnes of non-recyclable waste into alternative fuel.

Despite expecting macroeconomic volatility to persist for the rest of the year, the company remains optimistic about sustaining its industry-leading margins.

The management highlighted the specialised solution offerings, such as Holcim Water Protect and Coastal Guard, alongside the aggregates business, which has demonstrated significant volume growth and price momentum.

This segment is positioned as a high-potential driver capable of unlocking long-term value for stakeholders throughout 2026.

United Commercial Bank (UCB) reported a 90% year-on-year increase in consolidated net profit to Tk34.04 crore in the first half of 2026, driven by stronger contributions from its subsidiaries and a sharp decline in loan-loss provisioning.

According to the bank's half-year financial statements, consolidated earnings per share (EPS) rose to Tk0.22 for the January-June period from Tk0.12 a year earlier.The bank said the improvement in EPS was largely attributable to better performance by its subsidiaries.
During the period, interest income edged up to Tk3,097 crore, while interest expenses on deposits and borrowings increased at a faster pace, rising 24% to Tk2,813 crore. As a result, net interest income fell 65% year-on-year to Tk283.72 crore.The decline in core interest income was offset by strong non-interest earnings. Income from investments – including government treasury bills, bonds and zero-coupon bonds – jumped 71% to Tk921 crore, while commission, exchange and brokerage income rose 3.3% to Tk428 crore. Other operating income, however, fell to Tk13.37 crore.

The bank also benefited from a sharp reduction in provisioning. It set aside Tk214 crore against loans during the first half, down from Tk615 crore in the corresponding period of 2025.

In the April-June quarter, UCB's consolidated net profit rose 91% year-on-year to Tk22.66 crore from Tk11.88 crore.

Quarterly EPS increased to Tk0.15 from Tk0.08 a year earlier.

Investment income surged 87.6% during the quarter to Tk552 crore, while provisioning fell sharply to Tk60.84 crore from Tk372.55 crore in the same quarter last year, supporting the improvement in profitability.

Berger Paints Bangladesh has decided to invest Tk20 crore in the ordinary share capital of its wholly owned subsidiary, Jenson & Nicholson (Bangladesh) Limited, according to a disclosure published on the stock exchanges today (29 July).

Jenson & Nicholson manufactures metal containers for the paint, food and other industries. Established in Bangladesh in 1995, the company operates manufacturing facilities in Chattogram and Dhaka.

Over the years, it has expanded its product range from paint containers to lubricant, engine oil, hair oil and food-grade containers. The company has also entered the fancy container segment, becoming the first manufacturer of such containers in Bangladesh, according to Berger

Paints' website.Berger Q1 profit doubles

Separately, Berger Paints reported a 111% year-on-year jump in consolidated net profit for the April-June quarter, driven by higher sales, strategic price adjustments, lower finance costs and tax-related gains.

The company's revenue rose 15% to Tk814.19 crore in the first quarter of 2026 from Tk708.73 crore a year earlier.

Net profit after tax climbed to Tk180.77 crore from Tk85.69 crore, while earnings per share (EPS) increased to Tk36.81 from Tk18.11.

In its financial statement, Berger said the sharp rise in EPS was mainly due to higher sales, price adjustments to offset rising raw material and packaging costs, and lower interest expenses on UPAS loans.

The company also attributed the earnings growth to a lower effective tax rate and favourable adjustments to tax liabilities recognised in the previous year following the enactment of the Finance Act 2026.