Finance Minister Amir Khosru Mahmud Chowdhury today (27 July) urged Chinese investors to back high-tech and strategic sectors in Bangladesh, including semiconductor chip manufacturing.

Addressing the foundation stone laying ceremony for the proposed Chinese Economic and Industrial Zone (CEIZ) in Anwara, Chattogram, the minister highlighted the shifting focus of the country's economic priorities.

"While investment in readymade garments, medical equipment, and other traditional manufacturing sectors remains important, the time has come to pivot towards higher-tech and strategic industries. Bangladesh offers immense potential for advanced, tech-driven sectors, including semiconductor chips," he said.

Emphasising the need for knowledge sharing, Khosru added, "We are not looking merely for capital investment; technology transfer and the development of a skilled workforce are equally vital. The industries set up here will demand a large volume of highly skilled personnel."

The minister outlined the government's broader economic vision, noting that investment would serve as the primary driver for economic growth, job creation, and achieving a $1 trillion economy by 2034.

Reaffirming the government's commitment to creating a business-friendly environment, Khosru added, "Bangladesh is now open for business. Investment is the top priority for the current administration, and we are working continuously to implement the changes required to facilitate it."

Furthermore, the minister reassured investors regarding the repatriation of capital and profits, addressing a long-standing concern for foreign companies. "In the past, this was a major hurdle. Investors will now be able to easily repatriate their earned profits or capital back to their home countries whenever necessary."

Turning to the financial markets, Khosru invited Chinese enterprises to get enlisted on the Bangladeshi stock market. Listing locally would enable Chinese firms to raise capital more efficiently while allowing Bangladeshi retail investors to participate in their growth — ultimately reducing reliance on high-interest bank loans.

Chinese Ambassador to Bangladesh Yao Wen; Li Changgui, vice president of the China Road and Bridge Corporation (CRBC); Home Affairs Minister Salahuddin Ahmed; State Minister for Land Mir Mohammed Helal Uddin; Chattogram-13 MP Sarwar Jamal Nizam; and Chittagong Chamber of Commerce and Industry President Amirul Haq; and Bangladesh CEIZ Company Limited Chairman Wang Benqian also addressed the event, which was chaired by Chowdhury Ashik Mahmud Bin Harun, the executive chairman of Bangladesh Economic Zones Authority (Beza).

Based on an agreement between China's commerce ministry and the Prime Minister's Office of Bangladesh, the economic and industrial zone will be developed on approximately 800 acres of land in the Belchura area of Anwara.

To develop and operate this zone, Beza is implementing the "Supporting Infrastructure Project for Chinese Economic and Industrial Zone Project", to construct the necessary supporting infrastructure.

Strategic location

The proposed economic zone will be located 12 kilometres from Chattogram Port, seven kilometres from Shah Amanat International Airport, and adjacent to the Karnaphuli Tunnel. As a result, it will benefit from strong transportation and logistics connectivity, making it an attractive location for industrial and economic activities.

Calling it one of the flagship projects of China-Bangladesh cooperation, Ambassador Yao Wen said the industrial zone has so far hosted visits from more than 110 companies, signed over 30 Letters of Intent (LoIs) with potential investors, and attracted prospective investments worth nearly $500 million.

These investments are expected to create more than 1,00,000 direct and indirect jobs, he said.

The envoy said the zone is expected to attract investment not only in the readymade garment and textile sectors but also in high-tech industries such as electric vehicles (EVs), batteries, and medical equipment. "It is set to become a key foundation for the development of Bangladesh's high-tech manufacturing sector."

According to Beza, Bangladesh and China signed a memorandum of understanding on the project in 2014, and land acquisition was completed in 2016. However, the project remained stalled for years due to delays in appointing a developer, finalising financing arrangements, and resolving administrative issues.

Initially, China Harbour Engineering Company (CHEC) was considered for the role of developer, but negotiations did not progress. In 2022, the Chinese government nominated CRBC to take over the project development, paving the way for its implementation.

Later, Beza and CRBC formed a joint venture company, with Beza holding a 30% stake. The share was determined based on the value of a 50-year land lease. In return for investing $100 million in developing the economic zone, the Chinese company acquired a 70% stake.

The government-to-government project gathered pace following Prime Minister Tarique Rahman's official visit to China on 22-26 June, during which the two countries signed several investment-related deals.

Shortly before the PM's China visit, the Executive Committee of the National Economic Council (Ecnec) approved a Tk4,189 crore supporting infrastructure project for the economic zone on 16 June. Of the estimated budget, the Chinese government will provide Tk2,467 crore through preferential buyer's credit, while the Bangladesh government will fund the rest.

The supporting infrastructure includes a 1,235-metre jetty link road; a 330-metre bridge; a 1,181-metre four-lane road; a 25-million-litre central effluent treatment plant (CETP); a multipurpose jetty capable of handling 20,000 deadweight tonnes; gas transmission facilities; power substations and transmission lines; water reservoirs; and nearly 12 kilometres of boundary wall.

The project is expected to be completed by 31 December 2031.

Shares of CXMT Corp surged more than 500% on their Shanghai trading debut on Monday following Asia's biggest IPO this year, catapulting the chipmaker to the top of China's stock market by valuation despite a recent selloff in global tech stocks.

The stock reached 54.65 yuan mid-session compared to its sale price of 8.66 yuan per share. The rally lifted CXMT's market capitalisation to 3.65 trillion yuan ($539.21 billion), sharply up from $85.5 billion during the IPO process.

The explosive debut makes CXMT the most valuable company listed in China, overtaking Industrial and Commercial Bank of China (ICBC), the market's previous heavyweight.

With US restrictions raising the stakes in the global technology race, the chipmaker has become a cornerstone of China's effort to anchor its semiconductor ecosystem and narrow the gap in strategic sectors such as AI.

CXMT's first-day rally easily outstripped the more-than-doubling recorded by China Resources New Energy after its $3.6 billion IPO in China earlier this month.

Marquee Chinese chipmaker

The strong debut provides a gauge of how much investors are willing to pay for a marquee Chinese chip firm, as local markets navigate volatility following an AI-led selloff.

There was 122 billion yuan worth of CXMT shares traded in Shanghai during the morning session. CXMT became the first A-share stock to exceed 100 billion yuan turnover in a day, according to local media reports.

Chinese chipmaking and semiconductor stocks fell on Monday, as fund managers repositioned for CXMT shares.

CXMT's astronomical rally, which values it at nearly half of US rival Micron, has also sparked concerns of a bubble. Its expanding dominance in China has enabled it to raise prices for tech customers such as Huawei.

"At such a price, I don't dare to hold, or buy the stock," said Wu Zhou, fund manager at Shenzhen Deyuan Investment, who bought CXMT's IPO shares, adding he sold them all when the stock began trading.

AI-linked stocks, including chipmakers, have been at the forefront of global equity market gains this year. But concerns about stretched valuations and whether hefty AI-related capital expenditures will generate earnings growth quickly enough have recently dampened investor enthusiasm.

"The (CXMT) stock is too expensive and smells of speculation," said Yuan Yuwei, hedge fund manager at Trinity Synergy Investments, adding that "it's hard to say the optimism is sustainable."

In other Asian markets, tech-heavy South Korea's KOSPI and Taiwan stocks were down over 1% on Monday, while MSCI's IT index for Asia-Pacific shares outside Japan fell 0.5%.

Only 6.73% of CXMT's enlarged share capital was freely tradable at listing, as most shares are locked up. The small initial float could magnify price swings and attract strong turnover.

Severe memory shortage

CXMT, formerly ChangXin Memory Technologies, raised 57.92 billion yuan ($8.6 billion) in the IPO, the biggest mainland Chinese semiconductor offering on record. It surpasses SMIC's $7.5 billion Shanghai share sale in 2020 and the IPO proceeds could rise to 66.61 billion yuan if an over-allotment option is fully used.

Asian chipmakers and companies building data centres and related infrastructure have ridden a wave of spending worth hundreds of billions of dollars from big tech firms. Earnings from so-called hyperscalers this week are likely to set the tone for near-term sentiment around the AI trade.

"The memory market remains tight with price increases expected to continue through the end of 2027," Ellie Wong, an analyst at TrendForce, a technology research firm, said.

"Amid persistent supply shortages, many customers are seeking to diversify their memory supplier base, which should significantly benefit CXMT and create more business opportunities."

Morningstar analyst Jing Jie said CXMT was well-placed to benefit from rising domestic AI demand, but its technology gap with global leaders could limit its share of the market for memory chips used in AI systems.

In its prospectus, CXMT said AI demand had fuelled the latest upswing in memory chips, but warned the market could weaken if AI investment slowed or rivals added too much supply.

The company expects first-half revenue to rise more than sevenfold to 110 billion yuan to 120 billion yuan. It expects net profit of 66 billion yuan to 75 billion yuan, reversing a year-earlier loss.

Bata Shoe Company (Bangladesh) Ltd has reported a stellar financial performance for the second quarter of 2026, navigating a complex retail landscape to deliver a staggering 238% year-on-year growth in net profit.

Despite persistent macroeconomic challenges, including high inflation and reduced operating hours for retail outlets, the company successfully transitioned from a loss-making position last year to a robust profitable one this year, according to the company's press release.

According to the company's unaudited financial statements for the April-June 2026 quarter, approved during a board of directors meeting today (27 July), the multinational footwear major recorded a total revenue of Tk188.98 crore. This represents a healthy 19% increase compared to the Tk158.8 crore earned during the same period in 2025.

The most significant highlight, however, was the bottom-line turnaround. While the company had incurred a net loss of Tk9.64 crore in the second quarter of the previous year, it posted a net profit of Tk12.6 crore in the recently concluded quarter.

The company's half-yearly performance also reflected a strong upward trajectory. For the first six months of 2026 (January-June), Bata reported a consolidated revenue of Tk568.68 crore, marking a 10% growth on a year-on-year basis. The net profit after tax for the first half reached Tk50.4 crore, representing an 86% increase over the Tk27.2 crore recorded during the first half of 2025. Consequently, the earnings per share (EPS) for the six-month period improved significantly to Tk36.87, up from Tk19.87 in the corresponding period of the previous year.

Bata Bangladesh attributed this sustained growth momentum to the focused execution of business strategies and effective management of operating expenses.

The management noted that the business demonstrated remarkable resilience despite global geopolitical uncertainties, seasonal market volatility, and a general slowdown in domestic economic activity. A key factor in this success was the timing of the major religious festivals. With Eid-ul-Fitr falling in the first quarter and Eid-ul-Adha in the second, the company was able to capitalise on heightened consumer demand through integrated marketing campaigns and the timely launch of several new product collections.

These commercial initiatives, paired with disciplined cost management and operational efficiencies, served as the primary drivers of profitability throughout the first half of the year, said the company in its statement.

However, the path to recovery was not without hurdles. The company pointed out that persistent food inflation, which exceeded 10% during the period, continued to squeeze consumer purchasing power and restricted discretionary spending on non-essential items like high-end footwear. Additionally, the government-imposed retail closing hour of 7pm, introduced as an energy conservation measure, reduced the effective trading time for retail outlets across the country, limiting potential sales opportunities during peak evening hours.

Despite these constraints, the company expressed optimism about its long-term prospects. The management reaffirmed its commitment to a strategy centred on innovation and operational excellence to create value for both customers and shareholders.

Bata has been a household name in Bangladesh since 1962, operating as a subsidiary of Bafin (Nederland) BV, which holds a 70% stake. With two manufacturing units in Tongi and Dhamrai producing 1,60,000 pairs of shoes daily and selling nearly three crore pairs annually, the company remains a cornerstone of the local footwear industry.

Bata's share price rose by 0.91% to close at Tk898.60 on the Dhaka Stock Exchange yesterday, bringing its total market capitalisation to Tk1,229.28 crore.

The National Board of Revenue has ordered a nationwide drive targeting high-yield revenue sectors, including tobacco, and the speedy disposal of major tax disputes as it seeks to raise revenue collection by nearly 47% in the fiscal 2026-27 despite concerns from field officials over the feasibility of the target.

The directives were issued at a meeting between senior NBR officials and field-level revenue officers at the revenue board's headquarters in Agargaon yesterday (26 July), according to sources familiar with the discussions.

Field officials told the meeting that achieving the ambitious revenue target would be challenging under current economic conditions. However, the NBR leadership instructed officials to work towards meeting the goal by focusing on sectors with the highest revenue potential.

Tobacco, audits and tax disputes

According to officials who attended the meeting, the NBR decided to intensify oversight of the tobacco sector, the country's single largest source of tax revenue, while accelerating the resolution of major revenue-related legal disputes.

The meeting also decided to expedite audits of around 66,000 income tax and VAT files that had been selected through an automated system.

An NBR VAT commissioner, speaking on condition of anonymity, told The Business Standard that discussions included introducing QR codes on cigarette packets to strengthen monitoring and installing AI-powered cameras at tobacco manufacturing facilities to curb tax evasion.

The government collects more than Tk40,000 crore in revenue annually from the tobacco sector. However, various studies have shown that a huge amount is being evaded in this sector due to counterfeit cigarettes, smuggled tobacco products and other reasons.

The official added that the NBR had identified 23 major tax-related cases involving substantial amounts of disputed revenue and would seek their early disposal. If necessary, the cases could be resolved through the Alternative Dispute Resolution mechanism following directions from the finance minister, the official said.

According to NBR sources, the 23 cases involve more than Tk50,000 crore in disputed revenue.

The commissioner said NBR Chairman Ahsan Habib has instructed officials to complete audits of the selected files promptly and intensify field-level enforcement drives to detect tax evasion.

Field concerns

Field officials also warned that a proposal to collect VAT every three months instead of monthly could negatively affect revenue collection.

The NBR asked field offices to submit within one week details of the operational challenges affecting revenue collection. The issues will be presented to the finance minister and the prime minister's economic adviser, according to the meeting.

Officials also discussed the possibility of the prime minister meeting field-level revenue officials to boost their confidence. According to one commissioner who attended the meeting, officials were informed that the meeting could take place on 18 August.

Confidence and institutional challenges

According to NBR sources, the meeting also addressed the impact of recent institutional changes on revenue administration.

Following the fall of the Hasina government in 2024, the government's decision to abolish the NBR and divide its functions into two separate departments triggered protests by revenue officials, who objected to the transfer of administrative authority to officers from the administration cadre.

The protests led to the temporary closure of customs houses. After the government adopted a tougher stance, at least five officials were sent into forced retirement, more than 20 were dismissed, and several hundred officials and employees were transferred as disciplinary measures, according to the sources.

The sources also said allegations of bribery and corruption against some field officials, combined with concerns over inadequate institutional support following attacks during anti-evasion operations, had weakened enforcement efforts and reduced officers' confidence.

The meeting was also informed that Finance and Planning Minister Amir Khosru Mahmud Chowdhury and Prime Minister's Economic Adviser Rashed Al Mahmud Titumir would work from the NBR headquarters one day each week to strengthen oversight of the revenue authority's activities.

The country's premier bourse extended its losing streak for a third consecutive session today (26 July), as a combination of domestic energy concerns and global geopolitical instability continued to weigh heavily on investor sentiment.

The persistent downturn has significantly eroded market value, pushing the Dhaka Stock Exchange's (DSE) total market capitalisation below the psychological threshold of Tk7 lakh crore for the first time in recent weeks.

The benchmark DSEX index fell 19 points, or 0.34%, to close at 5,784. Over the past three trading sessions, the broad index has lost a cumulative 114 points, marking a sharp reversal from the bullish momentum seen the previous week.

The blue-chip DS30 index followed a similar trajectory, edging down by 6 points to close at 2,186.

The market breadth remained overwhelmingly bearish as 240 issues declined compared to 116 that managed to advance, while 33 scrips remained unchanged on the DSE floor.

Market participation also saw a notable contraction, with daily turnover dropping by 17% to stand at Tk780 crore, down from the previous session's volume.

The three-day slump has wiped out approximately Tk8,500 crore from the bourse's market valuation, dragging the total market capitalisation down to Tk6.98 lakh crore.

According to the daily market review by EBL Securities, the capital bourse remained in a corrective phase as lingering concerns over potential gas supply disruptions to industrial units and heightened geopolitical tensions in the Middle East kept investors cautious.

Persistent uncertainty surrounding the proposed amendments to margin lending rules further dampened sentiment, preventing investors from taking fresh positions in fundamentally strong stocks.

The trading session was volatile from the opening bell. Although investors remained active on both the buying and selling sides, a late sell-off in several large-cap stocks during the final hour dragged the indices back into negative territory.

In a rare divergence from the broader market weakness, the general insurance sector attracted renewed buying interest, driven by selective accumulation following the release of positive earnings reports from several companies, EBL Securities added.

On the sectoral front, the textile sector led trading, accounting for 19.2% of the day's total turnover, followed by general insurance at 11% and pharmaceuticals at 10.4%.

Most sectors ended in negative territory, with mutual funds suffering the sharpest decline of 2.2%, followed by ceramics and financial institutions.

In contrast, general insurance was the best-performing sector, gaining 2.9%, while the services and food sectors also posted modest gains.

Among individual stocks, Bangladesh National Insurance topped the gainers with a 9.96% surge, followed by ML Dyeing, BD Thai Food and Aamra Technologies.

CAPM IBBL Mutual Fund was the day's biggest loser, plunging 9.02%, followed by Fareast Life Insurance, Meghna Pet and National Housing.

The bearish sentiment was even more pronounced at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) dropped by 91 points to close at 9,444 and the broad CASPI index plunged by 141 points to settle at 15,478.

Trading activity at the port city bourse saw a catastrophic decline, with turnover plummeting by 74% to reach a meagre Tk5.15 crore.

Although corporate tax contributes around one-quarter of the country’s total tax revenue, the government collects relatively little from companies compared with the size of the economy.

Corporate income tax revenue in Bangladesh stands at around 1.5-1.8 percent of gross domestic product (GDP), around half the level of many peer economies, according to the latest report by the Organisation for Economic Co-operation and Development (OECD).

Bangladesh also trails several small economies in Latin America and the Caribbean, the report showed.

The poor collection leaves the government with less money to fund public services and increases its reliance on value-added tax (VAT), customs duties and borrowing. Ordinary people ultimately bear the cost of that dependence.

Business leaders and economists blame the weak collection on underreporting, the large informal economy, poor tax audits and weak enforcement. They also question the government’s generous tax exemptions for businesses every year.

For example, companies in the power, readymade garments, export processing zones and electronics sectors received Tk 73,989 crore in corporate tax exemptions in fiscal year 2022-23. Tax exemptions and reduced rates together amounted to 69 percent of the total direct tax collected that year.

The OECD findings come at a time when Bangladesh is under growing pressure to strengthen domestic revenue collection.

With one of the world’s lowest tax-to-GDP ratios, the National Board of Revenue (NBR) has repeatedly missed its annual targets, while the IMF reform programme calls for stronger domestic resource mobilisation.

WHY COMPANIES PAY LESS TAX

The country’s large informal economy is one of the main reasons corporate tax collection remains weak, as many businesses operate outside the tax net.

Nearly two-thirds of businesses still operate in the informal economy and remain outside the tax net, making formalisation the government’s first priority, according to Khondaker Golam Moazzem, research director at local think tank Centre for Policy Dialogue (CPD).

Meanwhile, compliance is weak even among registered companies. According to the NBR, about 1.60 lakh companies have tax identification numbers (TIN), but only 42,000 submitted tax returns in FY26.

Pointing to this widespread tax evasion and avoidance, Moazzem cited a CPD study estimating that Bangladesh lost about Tk 1.13 lakh crore in corporate tax revenue in FY23.

The revenue loss was equivalent to around 17 percent of the national budget that year.

The study also found that corporate tax evasion had risen steadily over the years from Tk 96,503 crore in 2012.

Moazzem said even among registered taxpayers, many companies fail to fully report their financial position.

“Incomplete or inaccurate financial statements, aided by weak auditing and, in some cases, collusion between auditors and tax officials, mean firms often pay less tax than their actual financial capacity warrants,” he said.

On the weak collection, Rupali Haque Chowdhury, president of the Foreign Investors’ Chamber of Commerce and Industry (FICCI), pointed to two possible reasons.

She said either many companies are genuinely unprofitable and pay only the minimum tax, or profitable firms are underreporting earnings or failing to comply with tax laws.

“A company may not make a profit in a particular year, and that is understandable. But if a company has been operating for 10 or 20 years without ever paying corporate tax, it points to a serious compliance issue that deserves scrutiny,” she said.

She urged regulators to strengthen enforcement, develop mechanisms to identify VAT and corporate tax evaders, and closely examine long-operating businesses that consistently report no taxable profits, in the interest of a level playing field for honest taxpayers.

A SMALL TAX BASE, HEAVY RELIANCE

Despite collecting relatively little corporate tax, Bangladesh depends heavily on it because the country’s overall tax collection is weak.

Corporate income tax accounts for about one-quarter of total tax revenue, compared with 19.5 percent across Asia-Pacific economies and 11.9 percent in OECD countries, according to the OECD report.

“It’s because Bangladesh’s overall tax collection is low, not because the corporate tax system is particularly strong,” Moazzem said.

“A sound tax structure should rely primarily on direct taxes, with direct taxes contributing about two-thirds of total revenue. Bangladesh still depends heavily on indirect taxes, indicating that the tax system remains structurally weak,” he added.

Others say weak corporate profitability has also held back tax collection.

Sabbir Ahmed, president of the Institute of Chartered Accountants of Bangladesh (ICAB), said successive economic shocks had squeezed company profits.

“Corporate income tax is levied on profits. Since the Covid pandemic, businesses have faced multiple headwinds -- from the Russia-Ukraine war and currency depreciation to high inflation -- which have eroded profitability. Lower corporate tax collection is therefore not unexpected,” he said.

Sabbir said Bangladesh has also failed to broaden its tax base, with many sole proprietorships and informal businesses still running outside the formal reporting framework despite recent digitalisation efforts.

Non-listed companies currently pay a corporate tax rate of 27.5 percent, one of the highest statutory rates in the region, while listed companies pay 22.5 percent under the five-year corporate tax roadmap announced in this year’s budget. Banks, insurance companies and other financial institutions pay 37.5 percent.

Asked whether Bangladesh’s relatively high corporate tax rate discourages compliance, Sabbir said the statutory rate is “not the major issue”.

“The bigger concern is the minimum tax, which raises the effective tax burden even when companies earn little or no profit,” he said, adding that many businesses continue to struggle with high costs and weak profitability.

He also called for faster digitalisation of tax administration, greater automation to reduce contact between taxpayers and officials, and stronger engagement between the NBR and professional bodies to improve compliance and revenue collection.

TAX EXEMPTIONS TAKE A TOLL

The country’s extensive tax incentives are also reducing corporate tax collection, according to Apurba Kanti Das, a former member of the NBR.

Over the years, the government has offered tax holidays and reduced tax rates to a wide range of industries, including businesses in economic zones and high-tech parks, power generation companies, electronics manufacturers and the readymade garment sector.

“When so many major sectors enjoy tax exemptions or concessional rates, it is only natural that corporate income tax collection remains relatively low compared with many other countries,” Apurba said.

Apurba said the country’s graduation from the least developed country (LDC) category should prompt a gradual shift in tax policy.

“As Bangladesh becomes a developing country, domestic revenue will have to play a much bigger role. The government should gradually move away from the culture of widespread tax exemptions and bring businesses under a more uniform corporate tax regime,” he said.

Apurba, also a former commissioner of the Large Taxpayers Unit (LTU), said tax holidays should be reserved for genuinely new industries rather than sectors that have long been established.

“This cannot happen overnight,” he said. “The government should adopt a clear five to ten-year roadmap to gradually phase out unnecessary tax exemptions instead of making abrupt policy changes.”

Snehasish Barua, director of SMAC Advisory Services Limited, said Bangladesh’s narrow tax base, generous tax incentives and large informal economy meant a relatively small group of compliant taxpayers bore a disproportionate share of the tax burden.

“The high VAT rate encourages underreporting of sales, while generous tax exemptions and sector-specific incentives continue to erode the revenue base,” he said.

Snehasish also pointed to weak enforcement and the lack of integration between income and asset databases as major obstacles to improving tax compliance.

Foodpanda Bangladesh’s losses rose 40 percent to €11.76 million last year, extending a losing streak that now stretches back a full decade, according to parent company Delivery Hero’s annual financial statements.

The Bangladesh operations of the German company comprise four entities: the core food delivery business; the quick-commerce arm Pandamart; cloud kitchen unit DH Kitchens; and a holding company, Jade 1343 GmbH & Co Vierte Verwaltungs KG.

Together they have lost €110.66 million since 2016 and have yet to turn a profit in any year, the statements show.

Food delivery accounts for the largest share of that total, with cumulative losses of €79.22 million. Its losses widened 65 percent last year to €7.14 million, accounting for over 60 percent of the group’s total loss.

Among the other entities, Pandamart logged a loss of €2.27 million last year, reaching a total of €20.27 million since its launch in 2020. DH Kitchens narrowed its losses by 15 percent to €0.34 million, with €2.28 million lost since 2020. Jade 1343 lost €2.01 million last year, taking its cumulative losses since 2021 to €8.89 million.

THE UBER DEAL

Foodpanda has yet to turn a profit in Bangladesh since entering the market in 2013. Its decade of losses now intersects with Uber’s $13 billion acquisition offer for Delivery Hero, announced last week.

The logic behind the deal, according to Uber, is to cross-sell by gaining access to takeaway customers in markets where it offers rides but not food, such as South Korea and the Middle East, and converting them into users of both.

Uber reckons that its cross-platform users generate roughly three times the gross bookings and higher profits than single-product users.

But in the case of Bangladesh, Uber exited the food delivery business within 14 months in June 2020 after failing to gain any ground despite considerable cash burn in the intensely competitive market.

There are two possible scenarios regarding the acquisition, said AKM Fahim Mashroor, former president of the Bangladesh Association of Software and Information Services. One possibility is that Uber retains the Foodpanda brand and the business continues to operate largely as it does now, he said.

The other scenario is that Uber discontinues the brand altogether, said Mashroor, also the chief executive officer of BDjobs.com. “Since Bangladesh is not a particularly lucrative market, that is also a real possibility -- everything could change.”

Meanwhile, responding to queries from The Daily Star, Foodpanda Bangladesh said it is yet to receive any indication of changes to its operations following the acquisition announcement.

“Nothing changes today. Any organisational decisions and specific branding decisions will be worked through after closing, which is expected in the second half of 2027,” the company said in a statement.

“Bangladesh is one of Delivery Hero’s most dynamic markets, possessing immense potential for long-term growth. Our focus and investments over the last decade have been dedicated to building cutting-edge technology, empowering communities economically and fostering ecosystem development for customers and partners,” the company added.

Uber did not respond to The Daily Star’s request for comment.

The government yesterday set a merchandise export target of $55.2 billion and a services export target of $8.2 billion for fiscal year 2026-27. Economists and business leaders said achieving the targets would be difficult amid an uncertain global environment and persistent domestic constraints.

The targets are 15 percent higher than the actual export earnings in the last fiscal year, Commerce Minister Khandakar Abdul Muktadir said at a press conference at the commerce ministry.

Bangladesh exported $48 billion worth of goods in FY2025-26, down 0.58 percent from the previous year.

Garment exports, which account for more than 80 percent of the country’s export earnings, fell 1.64 percent year on year to $38.70 billion in FY26. Industry leaders said exports are unlikely to recover quickly as higher energy costs, weaker consumer demand in key markets and rising inventories continue to weigh on global orders.

Before FY2024-25, merchandise exports had declined for two consecutive years after reaching a record $52 billion in FY22.

Abdur Razzaque, chairman of the Research and Policy Integration for Development, said achieving 15 percent export growth was possible, but considerable uncertainty remained.

Even the latest 10 percent tariff imposed by the US could affect exports. However, since shipments were weak in the last fiscal year, they may rebound this year, he added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said achieving even 10 percent export growth would be difficult given the ongoing gas shortage, which has disrupted industrial production over the past 10 days.

“The current situation does not suggest the target is achievable. Exporters will be satisfied if they can achieve 2 percent to 4 percent growth by the end of the year,” Hatem said.

M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, also said the target would be difficult to achieve because of both domestic and external pressures.

At the briefing, Muktadir did not provide a sector-wise breakdown of the export target but said he remained optimistic that exports would recover and the goal could be achieved.

The government is counting on business stimulus measures, budget support and greater policy stability following the return of an elected government to help revive exports.

He also said exports could receive a further boost from new trade agreements. The Economic Partnership Agreement (EPA) with South Korea is expected to be signed within the next few months, while the EPA signed with Japan in February is expected to take effect after Parliament ratifies it in its next session.

Bangladesh also plans to sign at least six free trade agreements by the end of the year as negotiations progress. It is also negotiating a free trade agreement with the European Union to retain duty-free access to its largest export market after graduating from the group of Least Developed Countries (LDCs).

The country’s graduation to developing-country status may be delayed by another three years after two UN bodies, including the United Nations Committee for Development Policy (UNCDP) and the United Nations Economic and Social Council (ECOSOC), backed Bangladesh’s request.

The extension could provide greater certainty for businesses and trading partners by allowing Bangladesh to retain its LDC status until 2029, the minister said.

Replying to a question, Muktadir said improving energy supplies to industry remained a top priority, although it could not be done overnight. The government is procuring two more Floating Storage and Regasification Units (FSRUs) to increase gas supplies to factories.

He said lower exports in the last fiscal year were driven by both domestic political uncertainty and adverse global conditions. With an elected government in place, policy stability and predictability would help boost exports of goods and services, he added.

Onion farmers in several major producing districts have been grappling with low prices and mounting losses for months. But wholesale prices have risen by as much as twofold in some areas over the past two weeks, bringing much-needed relief to growers.

For consumers, however, the rebound has come at a cost, with retail prices climbing as supplies dwindle.

Visits to wholesale markets in Faridpur and Rajbari, along with interviews with farmers, traders and agriculture officials, showed that onions were selling for Tk 750 to Tk 900 per maund (37.32 kg) around mid-July, depending on quality.

Prices later peaked at about Tk 1,600 to Tk 1,900 per maund before settling at around Tk 1,500 to Tk 1,700 yesterday.

According to the Department of Agricultural Extension in Faridpur, the district produced 751,635 tonnes of onions from 47,036 hectares in 2025-26, up from 593,239 tonnes the previous season

Traders said onion supplies have fallen by around 25 percent. They attributed the decline to the spoilage of large quantities of stored onions due to excessive heat, rainfall and inadequate storage facilities, which have reduced farmers’ stocks.
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Wholesalers package onions at Baharpur onion market in Baliakandi upazila, Rajbari. The photos were taken recently. PHOTO: AHMED HUMAYUN KABIR TOPU & SUZIT KUMAR DAS

Babu Mia, 52, an onion farmer from Bastaputi village in Nagarkanda upazila of Faridpur, said he harvested 200 maunds of onions this year and stored 150 maunds. Some of the stored onions rotted, while others lost weight, leaving him with around 130 to 135 maunds.

“Two weeks ago, the price was so low that I would not even have recovered my production costs. Instead, I would have incurred further losses,” he said.

Another farmer from the same village, Sukanta Mondal, 45, said he refrained from selling his onions earlier because of the low prices and still has around 150 maunds in storage.

“The prices over the past few months had discouraged me from cultivating onions again. But the recent price hike has restored my confidence,” he said.

Nazmul Sahadat, 48, a trader at Banibaha onion market in Rajbari Sadar, said most farmers are now busy harvesting jute, while continuous rainfall over the past few days has further reduced onion supplies by about 25 percent.

Sudeb Mondal, an onion trader in Nagarkanda upazila of Faridpur, said the sudden rise in prices had caught traders by surprise.

“The price increase will benefit both farmers and traders. I think onion prices may exceed Tk 2,000 per maund,” he said.

According to the Department of Agricultural Extension (DAE) in Faridpur, the district produced 751,635 tonnes of onions from 47,036 hectares of land during the 2025-26 season, up from 593,239 tonnes in the previous season.

Nationwide, onion production reached 4.9 million tonnes against an annual demand of around 4.5 to 4.6 million tonnes.

Despite the surplus, a significant quantity has failed to reach the market because of storage losses, spoilage and post-harvest wastage.

According to the Department of Agricultural Marketing (DAM), around 50 percent of the country’s onion production remains in storage at the farm level.

The tighter supply has already reached consumers. Retail prices currently stand at Tk 50 to Tk 60 per kg, up from Tk 35 to Tk 45 per kg two weeks ago, according to data from the state-run Trading Corporation of Bangladesh.

A similar trend has unfolded in Pabna, another major onion-producing district.

Prices began climbing last Saturday (July 18) in Pabna’s wholesale markets. During the first four days of the week, they reached Tk 1,800 to 1,900 per maund. After a temporary slump around Wednesday, prices rose to Tk 1,800 to Tk 2,000 per maund by yesterday.

“The price of onion increased by Tk 100 to Tk 200 this week,” Md Robiul Islam, a prominent onion trader at Pushpopara Haat, told The Daily Star.

“When market demand rises, wholesale prices increase. Prices depend strictly on supply and demand in the wholesale market,” he explained.

For growers who endured months of low prices and mounting storage losses, the rebound has provided some respite.

Md Kamruzzaman, a leading onion farmer from Durgapur village in Sujanagar upazila, told The Daily Star that the cost of cultivating onions per bigha reached Tk 60,000 to Tk 70,000 this year.

“Farmers have experienced record spoilage this year. Around 30 to 40 percent of hybrid onions have already rotted in farmers’ homes,” he said.

The farmer estimated that onion growers could only turn a profit if prices remained above Tk 1,500 per maund.

“The current market price is acceptable,” Kamruzzaman added.

According to Md Ashikur Rahman, sub-assistant agriculture officer at the Department of Agricultural Extension (DAE) in Pabna, onions were cultivated on 54,335 hectares of land in the district this year, yielding a record total of 995,367 tonnes.

“After the harvest, more than 6.5 lakh tonnes of onions were stored in farmers’ warehouses. Currently, a stock of 275,800 tonnes remains available in the district,” Ashikur Rahman stated.

Agriculture officials have also welcomed the surge.

“The production cost of onions comes out to over Tk 32 per kg, yet onions had been selling below Tk 30 for the past four months, forcing farmers to sell at a loss. If farmers receive above Tk 40 per kg, they can make a reasonable profit. Therefore, this price increase was necessary for the survival of our farmers,” Ashikur Rahman said.

Bangladesh and the Maldives are exploring a direct shipping link to facilitate bilateral trade and strengthen maritime connectivity between the two countries.

The proposal came up during a bilateral meeting between Foreign Minister Khalilur Rahman and his Maldivian counterpart Iruthisham Adam in Male today (26 July), according to a press release from Bangladesh's Foreign Ministry.

The two ministers discussed ways to expand cooperation in migration and expatriate welfare, tourism, education, health, blue economy and maritime connectivity.

They exchanged views on the proposed direct shipping link, which is expected to facilitate bilateral trade and improve connectivity between the two South Asian nations.

The two sides also discussed possible high-level visits as part of efforts to further deepen bilateral engagement.

Khalilur reaffirmed the government's "Bangladesh First" foreign policy and underscored the importance of strengthening people-to-people ties between the two friendly countries.

The foreign ministers also explored ways to enhance cooperation in areas that could contribute to stronger economic and people-to-people links between Bangladesh and the Maldives.

Maldives' State Minister for Foreign Affairs Mohamed Fahmy Hassan and Bangladesh High Commissioner to the Maldives Md Nazmul Islam were also present at the meeting.

The proposed shipping link comes as the two countries seek to strengthen maritime connectivity and expand bilateral trade. Improved direct connectivity could help facilitate the movement of goods between the two countries while supporting broader economic cooperation.

The securities regulator has extended the deadline for listed companies to appoint at least one female independent director to their boards by one year, to December 2026, after many firms said they were struggling to find qualified candidates.

In a directive issued on Sunday, the Bangladesh Securities and Exchange Commission (BSEC) revised the compliance deadline for the requirement under the Corporate Governance Code, 2018, from December 2025 to December 2026.

The extension follows requests from listed companies and market stakeholders, who cited difficulties in identifying eligible and qualified female professionals to serve as independent directors within the stipulated timeframe.

The requirement, stipulated under Condition 1(2)(a) of the Corporate Governance Code, mandates every listed company to appoint at least one female independent director as part of efforts to strengthen corporate governance, board diversity and independent oversight.

According to the Dhaka Stock Exchange (DSE), more than 100 listed companies had yet to comply with the provision as of June this year.

A BSEC official said the requirement remains an important component of the Corporate Governance Code. However, considering the practical challenges faced by companies and their requests, the commission decided to grant additional time for compliance.

The directive also instructed the Dhaka Stock Exchange and the Chittagong Stock Exchange to immediately notify all listed companies and relevant stakeholders of the revised deadline to facilitate timely complisance.

MEP Hi-Tech Industrial Park Limited, a concern of MEP Group, has started construction of a Tk200 crore electrical and electronics manufacturing facility at the National Special Economic Zone (NSEZ) in Mirsarai, Chattogram, with commercial production targeted for 2029.

The project is being developed on around 10 acres of land and will manufacture a range of electrical products, including electric wires, switches and sockets, fans, LED lights and circuit breakers.

Once fully operational, the facility is expected to create around 2,000 direct and indirect jobs. The company also plans to expand exports of its "Made in Bangladesh" electrical products alongside meeting domestic demand.
The Bangladesh Economic Zones Authority (Beza) and MEP Hi-Tech Industrial Park Limited laid the foundation stone of the project today (26 July), according to a Beza press release.

Beza said the fully locally-funded project will establish a modern, technology-driven and environment-friendly electrical products manufacturing cluster at the NSEZ.

Jahangir Alam Chaklader, managing director of MEP Hi-Tech Industrial Park Limited, said the company is committed to developing a world-class, technology-driven and environmentally friendly manufacturing facility.

He expressed hope that the project would help meet domestic demand while strengthening the competitive position of Bangladeshi electrical products in international markets.

MEP Hi-Tech Industrial Park Limited is a concern of MEP Group, which was established in 1974. According to Beza, the group has around 2,000 corporate clients and a distribution network of more than 1,000 outlets across the country.

The group's businesses include Mohammadi Electric Wire & Multi Products (MEP) Ltd, MEP Fan Ltd, MEP Energy Saving Lamps Industries Ltd, MEP Polymer Industries Ltd, Chaklader Shipping Lines Ltd, MEP Light Industries Ltd, MEP Printing and Packaging Industries and MEP Agro Ltd.

The project follows a land lease agreement signed between Beza and MEP Hi-Tech Industrial Park Limited on 18 February 2026 for establishing a modern electrical products manufacturing facility at the NSEZ.

Beza has recently introduced time-bound plans to accelerate construction and development work by investors. MEP Hi-Tech Industrial Park Limited started construction in line with the timeline, the authority said.

Seventeen industrial enterprises are already operating at the NSEZ, while around 20 others are under construction.

The NSEZ, the country's largest planned industrial zone, is being developed along a 25-kilometre stretch of the coast in Mirsarai, with industrial facilities and integrated urban amenities.

The government has intensified efforts to attract foreign investment as it seeks to transform Bangladesh into a $1 trillion economy by 2034, State Minister for Foreign Affairs Shama Obaed Islam said on Sunday (26 July).

Speaking to reporters after a closed-door roundtable titled "Roadmap for Trade, Growth and Economic Diplomacy-2026: The Capital Dialogue" at the Ministry of Foreign Affairs, she said several countries are already in discussions with Bangladesh over potential investments in different sectors.

"Many investors are already contacting the Bangladesh Investment Development Authority (Bida) and working with both Bida and the Commerce Ministry," she said, adding that China, Japan, the United States and several other countries have expressed interest in investing in Bangladesh.

The roundtable was attended by Finance and Planning Adviser Rashed Al Mahmud Titumir, alongside senior government officials and policymakers.

Shama Obaed said the government is placing particular emphasis on the blue economy, describing it as one of the country's priority sectors for future investment.

"We want various European countries to invest in the blue economy," she said, adding that Bangladesh sees significant untapped potential in marine resources and plans to hold more policy dialogues to identify challenges and attract investment.

She said the Ministry of Foreign Affairs is prioritising economic diplomacy in line with the government's broader policy agenda, with discussions focusing on ways to strengthen investment, trade and long-term economic growth.

The government is also developing a new economic model to address current financial challenges through higher investment, administrative reforms, industrial revitalisation and long-term agricultural transformation, with the goal of building a $1 trillion economy by 2034, she said.

According to the state minister, efforts are under way to restore economic momentum and build a more resilient and competitive economy.

The discussion follows the Bangladesh Trade and Investment Conference 2026, held in Dhaka on 13 June, where government officials, diplomats, development partners and business leaders explored strategies to strengthen trade, attract foreign direct investment and enhance economic resilience.

The conference, jointly organised by the Ministry of Foreign Affairs and Bida under the theme "Navigating Risks – Unlocking Resilience," focused on trade and investment policy, financing, market access, industrial competitiveness, artificial intelligence, creative industries and sports, as Bangladesh prepares for graduation from least developed country (LDC) status.

Bangladesh will require an additional $421 billion over the next five years to achieve the Sustainable Development Goals (SDGs) by 2030, according to a new government assessment unveiled yesterday.

The estimate was presented at a workshop on the Development Finance Assessment (DFA) and SDG financing in Dhaka. The event was organised by the Economic Relations Division (ERD), with support from the United Nations Development Programme (UNDP) and the UN Resident Coordinator’s Office in Bangladesh.

The workshop reviewed findings from the DFA, a global tool that helps align financing policies, institutions and financial flows with national development priorities, and discussed Bangladesh’s updated strategy for financing the SDGs.

Selim Raihan, professor of economics at Dhaka University, presented the financing estimate for FY2026-FY2030. He said most of the required funding would need to come from domestic public and private sources, climate finance and international partnerships.

ERD Secretary Md Shahriar Kader Siddiky said the remaining years to achieve the SDGs would be challenging.

“The financing gap is large, the time available is limited, and the global environment remains uncertain. Nevertheless, I remain confident that Bangladesh can make meaningful progress,” he said.

“What we now need is a clear set of priorities, coordinated action, better governance, and effective implementation,” he added.

UN Resident Coordinator Carol Flore-Smereczniak stressed the importance of domestic resource mobilisation at this stage of Bangladesh’s development.

She said opportunities for development financing are shrinking globally.

“This is an opportunity for Bangladesh to increase its domestic investment in the SDGs by increasing the tax-to-GDP ratio and by encouraging the private sector to make SDG-aligned investments.”

Speaking on behalf of UNDP, Deputy Resident Representative Sonali Dayaratne underscored the need for stronger financing policies and partnerships to narrow the funding gap.

She said the financing gap for achieving the country’s development goals had widened further and that the government could use public resources to leverage and de-risk private investment.

“The challenge is one of economic governance. Getting it right requires building a financial ecosystem that is grounded in the application of transparent rules and regulations for all,” she said.

Most listed general insurance companies posted higher earnings in the first half of 2026, with eight of nine insurers reporting year-on-year growth in earnings per share (EPS), according to their unaudited financial disclosures published on the Dhaka Stock Exchange (DSE) website today (26 July).

Some insurers recorded more than double-digit growth, with Global Insurance leading the sector with a 121% increase in half-yearly earnings.

Global Insurance's EPS rose to Tk1.48 in January-June 2026, up from Tk0.67 in the same period a year earlier.

Peoples Insurance posted the second-highest growth, with its EPS rising 97% to Tk2.93, while Takaful Insurance reported an 86% increase to Tk1.38.

Among the major players, Pioneer Insurance recorded a 43% year-on-year rise in EPS to Tk3.01 from Tk2.10 a year earlier.

Central Insurance and Prime Insurance each posted 12% growth in EPS, reaching Tk1.03 and Tk1.30, respectively.

Union Insurance reported an 8% increase in EPS to Tk1.23, while Rupali Insurance posted a marginal 1% rise to Tk0.71.

Sonar Bangla Insurance was the only insurer among the nine to report a decline in earnings. Its EPS fell 42% to Tk0.52 in the first half of 2026, from Tk0.89 in the corresponding period of 2025.

Market analysts attributed the overall improvement in insurers' earnings to stronger premium collection and higher returns from investment portfolios during the first six months of the year.

Bangladesh's export-earning target for the current financial year is set downbeat at US$63.4 billion compared to the last fiscal's original fixation, reflective of not-so-inspiring world trade situation. Bangladesh Business Directory

However, the 2026-27 target marks a 15-percent growth over the actual export receipts in the last fiscal year.

Of the total, the earnings target from merchandise export has been set at $55.2 billion, up 15 per cent from the past actual earnings of $48 billion.

On the other hand, an $8.2 billion worth of export target has been fixed for the services sector this fiscal, which is also 15-percent higher than that of the achieved earnings of $7 billion in FY '26.

Commerce Minister Khandakar Abdul Muktadir made the announcement at a press conference at his secretariat office on Sunday, on a note of optimism that the target can be achieved by the yearend.

The country's export-earning target--both for merchandise and services- was fixed at $$63.5 billion while the actual earnings came to $55 billion in the just-past fiscal.

The new government is betting on policy stability, expanded trade pacts, and targeted industrial diversification to revive its export engine after missing its targets in the previous fiscal year, as noted by the commerce minister.

Speaking on the sector's recent spell of sluggish growth, the minister expressed the confidence that the country would soon regain momentum, bolstered by business-friendly measures in the national budget and a stable policy environment under the newly elected government.

Mr Muktadir said central to the government's strategy is breaking the country's heavy reliance on the ready-made garment (RMG) sector, which currently accounts for roughly 85 per cent of Bangladesh's total export basket.

"To broaden the base, four non-apparel sectors have been slated for priority support and expansion."

The sectors are leather and leather goods, shipbuilding and ship recycling, light engineering, information technology (IT) and trade negotiation acceleration, he explains.

The commerce minister has mentioned that to secure broader market access ahead of Bangladesh's upcoming graduation from least- developed country (LDC) status, Dhaka is pushing aggressively on the diplomatic front.

"Negotiations on free-trade agreements (FTAs) with South Korea and the United Arab Emirates (UAE) are nearing completion, with plans to wrap up trade talks with four to five additional nations by December," he told reporters.

Meanwhile, the landmark Economic Partnership Agreement (EPA) with Japan is set to be tabled in the upcoming parliament session for ratification, and the European Union (EU) has expressed interest in launching formal FTA talks, he added.

Addressing concerns over the LDC transition, the minister noted that uncertainty surrounding the process had largely been cleared. Exporters will continue to benefit from existing duty-free market-access facilities for a three-year grace period post-graduation.

On the domestic front, energy shortages remain one of the primary headwinds for manufacturers and exporters.

The minister said to resolve fuel constraints and keep factories running, the government is working to deploy two additional Floating Storage and Regasification Units (FSRUs). The expansion aims to boost liquefied natural gas (LNG)-import capacity and stabilise energy supplies for critical industrial hubs.

Despite ongoing geopolitical conflicts and global economic volatility, he holds the hope that improved domestic business conditions, new trade alliances, and targeted infrastructure investments will position the country to meet its export targets and sustain long-term growth.

Commerce secretary Md Ataur Rahman Khan, the Export Promotion Bureau (EPB) chairman, senior officials and trade and business leaders were present at the press conference.

"The export target for FY'27 is achievable, but its attainment will depend on both domestic and external factors," Md. Ezazul Islam, Director-General of Bangladesh Institute of Bank Management (BIBM), told The Financial Express.

Dr. Islam, also a former executive director of Bangladesh Bank (BB), said the government must ensure an adequate and uninterrupted supply of electricity and gas to industrial units to support export-oriented production. He has also stressed the need for effective measures to diversify export destinations while sustaining Bangladesh's existing markets to achieve the country's export target.

On the other hand, apparel exporters have cast doubt on the government's ability to achieve its export target for FY'27, saying that the projected 15-percent growth is "unrealistic" amid persistent energy shortages, weak global demand, falling prices and mounting external pressures.

Talking to The FE, former BGMEA president Faruque Hassan said he was surprised by the "ambitious" target setting.

"When our logistics and utility supplies remain inadequate, how can the government expect the sector to deliver 15-percent export growth?" he asked.

The global apparel demand remained sluggish last year, he said, claiming that Bangladesh has already lost to Vietnam its position as the world's second-largest apparel exporter during the January-May period this year. "Order inflows have slowed significantly, and buyers are forcing exporters to accept lower prices. Under these circumstances, achieving such a high growth target will be extremely challenging," Faruque Hassan said.

Echoing the concerns, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem said the industry had opposed the proposed 15-percent-growth target during consultations with the government, arguing that it did not reflect the sector's current realities.

Mr. Hatem said export earnings remained under pressure throughout the previous fiscal year, with growth staying in negative territory at the end of FY'26.

"If the overall business environment has not improved, how can exports grow by 15 per cent? Even achieving 10-percent growth will be difficult unless the situation changes substantially," he notes.

It means that the number of rich people have increased in the country during the period of the interim government in the country.

Central bank data from its latest ‘Banking Sector Update’ shows that individual crore-taka accounts rose from 33,629 in September 2024 to 40,645 by the end of March 2026. This represents an addition of 7,016 new accounts—a growth of nearly 21 percent.

Total deposits held in these high-value individual accounts increased from Tk 87,200 crore in September 2024 to Tk 91,400 crore in March 2026.

Economists and banking sector analysts noted that a 21 percent surge in crore-taka accounts within such a short span—amid high inflation, economic stagnation, historically low private sector credit growth, and persistent poverty pressures—does not fully align with typical economic trends, calling for an in-depth investigation into the underlying drivers.

A senior Bangladesh Bank official, speaking on condition of anonymity, suggested that following the political changeover, new influential groups emerged across various sectors. A portion of funds generated through illegal activities, such as extortion and land grabbing, may have entered the banking system, contributing to the rise.

However, former Finance Adviser and former central bank Governor Dr. Salehuddin Ahmed noted that multiple factors could be involved.

He explained that following the reconstitution of the board of directors at several weak banks, many depositors withdrew their fixed deposit receipts (FDRs) and transferred them to relatively stronger banks. He added that the emergence of a new business class and a preference for keeping liquid cash in banks might have also played a role.

Addressing whether individuals connected to new power centers rapidly accumulated wealth, Dr. Salehuddin remarked that when control over business and economic activities shifts to new groups following political changes, it naturally impacts bank account figures.

Meanwhile, central bank data does not strongly support the notion that the surge was driven merely by people depositing cash previously held at home. Cash held outside the banking system by the public actually grew from Tk 283,553 crore in September 2024 to Tk 303,018 crore by March 2026.

Dr. Toufic Ahmad Choudhury, former Director General of the Bangladesh Institute of Bank Management (BIBM), stated that alongside deposit transfers from weak banks and the rise of new business elites, sluggish private sector investment prompted wealthy individuals to keep large funds parked in bank fixed deposits.

During the interim government’s tenure, the boards of 16 private banks were reconstituted alongside major leadership changes in several others. During the same period, private sector credit growth dropped to historical lows, leading commercial banks to invest heavily in government Treasury bills and bonds.

Commenting on the matter, Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan said the central bank has tightened oversight to enforce good governance in the banking sector. He stated that while prevailing economic conditions could explain part of the growth, necessary action would be taken if any involvement of illicit or undisclosed money is uncovered.

Despite signing a $3.7 billion aircraft purchase agreement and agreeing to buy higher-priced American wheat as part of its commitments under the US Agreement on Reciprocal Trade, Bangladesh has so far gained little except fresh tariffs imposed unilaterally by Washington, raising questions about the deal's effectiveness.

Bangladesh now faces an additional 10% tariff over alleged forced labour, effective 24 July, while a separate US investigation into alleged excess production could expose the country to further duties.

Meanwhile, a key benefit promised under the trade deal — zero reciprocal tariff on apparel made with American cotton — remains elusive, leaving Bangladesh's exporters uncertain about any gain from it.

Bangladesh made all the concessions, while the US imposed only tariffs – that is how economists assess the trade deal after Washington slapped fresh tariffs on Bangladesh.

Rather than accepting economic losses as the cost of global power politics, they argue Dhaka should immediately begin negotiations with the US to revise or even scrap the deal.

Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), told TBS that the trade agreement with the US was "fundamentally unfair and unreasonable".

"The US has imposed almost identical tariff rates on around 60 countries, including Bangladesh. That means Bangladesh gained no real advantage from signing the agreement. Instead, it has committed to importing various US products at higher prices," he said.

Professor MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), described the agreement as "extremely unfair" and "completely unequal".

"This can hardly be called a trade agreement. Normally, both sides make concessions. Here, Bangladesh made all the concessions but received nothing in return," he said.

Garments made of US cotton free from 10% tariff

Officials said the Office of the US Trade Representative (USTR) has informed Bangladesh that garments made with US cotton will face only the existing 15% tariff from September - the new 10% duty will not apply in this regard.

However, the facility will be available for only three years, with the US retaining the authority to determine the eligibility and the maximum export volume.

Cambodia, Indonesia, and Malaysia have been offered the same arrangement. However, after a US court struck down the reciprocal tariff regime, Malaysia cancelled the trade agreement it had signed with Washington in March.

Trade analysts are sceptical that Bangladesh will be able to take meaningful advantage of the scheme. They say the US is likely to impose conditions so restrictive that Bangladeshi exporters may struggle to qualify for the duty-free facility.

After the interim administration signed the trade agreement just two days before February's election, policymakers hailed the arrangement as a major achievement.

Bangladesh is the world's largest importer of US cotton, buying nearly $4 billion worth annually. In July-April of FY26, the country exported goods worth $7.36 billion to the US.

After a US court invalidated the reciprocal tariff regime, the Trump administration imposed a temporary 10% tariff for six months under separate legislation.

As that expired on Friday, another 10% tariff imposed under Section 301 of the Trade Act of 1974 over alleged forced labour came into effect.

Among the 60 affected countries, Bangladesh, India, Malaysia, and 14 others face a 10% tariff, while China, Vietnam and 36 other countries face 12.5%. The remaining countries are subject to tariffs ranging between 10% and 12.5%.

The foreign ministry has described Bangladesh's slightly lower tariff rate than China and several other competitors as a positive outcome.

'Deal should be revised or cancelled'

Economists said Bangladesh is bound by its commitments to purchase US products under the agreement, even if doing so results in financial losses. Instead of accepting those costs, they argue, Dhaka should immediately begin negotiations to revise or terminate the deal.

CPD's Mustafizur Rahman said that if the trade agreement is fully implemented, Bangladesh could face an additional 19% tariff.

"If other countries continue to face tariffs of 10-12%, while Bangladesh is subjected to an extra 19% under the agreement, it will lose its competitive edge. The government should therefore begin negotiations with the US to terminate the agreement," he said.

He added that several studies estimate the 10% tariff alone would increase costs for US buyers by around $100 billion a year, eroding their purchasing power and likely reducing imports from Bangladesh and other exporting countries.

MA Razzaque said the agreement's only apparent benefit for Bangladesh was the promise of duty-free access for garments made with US cotton, but even that remained uncertain.

"The agreement merely states that the US will determine the mechanism for granting the facility. I do not believe Bangladesh will be able to benefit from it," he said.

"The US no longer adheres to trade agreements or international trade rules. It uses its economic power to impose obligations on other countries. As a result, Bangladesh will still have to honour its purchase commitments even if it receives no meaningful concessions from Washington, despite the economic cost," Razzaque added.

Costly commitments

Although Bangladesh has yet to ratify the agreement, it has already begun implementing key commitments, importing energy, consumer goods and other products from the US and US companies at higher prices.

On 1 July, the government approved the import of 2.2 lakh tonnes of US wheat under a government-to-government arrangement at $322 per tonne.

On the same day, it also approved the import of 50,000 tonnes through an international tender at $297.92 per tonne, meaning the government agreed to pay about $24 more per tonne for US wheat.

Following the signing of the trade agreement in February, Dhaka also agreed to purchase 14 Boeing aircraft worth around Tk45,000 crore. The government and private sector have also increased purchases of US LNG, sugar, soybeans, cotton and other commodities.

The interim administration also amended the Public Procurement Act and Public Procurement Rules to make it easier for US companies to participate in public tenders.

Fears over fresh tariffs

Trade experts say the Trump administration launched investigations into 60 countries, including Bangladesh, over alleged forced labour but has never disclosed any evidence supporting the allegations. They argue the tariffs were imposed unilaterally.

They fear the ongoing USTR investigation into Bangladesh's alleged excess production capacity could follow the same pattern and result in additional tariffs.

Experts note that every country investigated under Section 301 over alleged forced labour ultimately faced tariffs, suggesting the outcome had been predetermined.

Mohammad Hafizur Rahman, former director general of the WTO Cell at the commerce ministry, rejected the allegation that Bangladesh has excess production capacity.

"Garments are Bangladesh's principal export, yet almost all raw materials are imported. There is no basis for claiming Bangladesh has excess production capacity," he said.

He said Bangladesh's only real advantage is its low-cost labour. "Employing a large workforce in the garment sector at relatively low wages does not constitute excess capacity; rather, it reflects the economic realities of Bangladesh."

He argued that such allegations would only be credible if Bangladesh were producing goods on a scale unmatched by competitors such as India, China or Myanmar.

Exporters remain unconvinced

BGMEA President Mahmud Hasan Khan said Bangladeshi exporters have yet to receive duty-free access for garments made with US cotton, despite the commitments made under the agreement.

"USTR has informed us that the facility will become effective from September. The US will also determine the eligibility conditions and export volume. The concession will be available for three years," he said.

Fazlee Shamim Ehsan, senior vice-president of BKMEA, said there was little sign that Bangladesh would receive meaningful benefits from Washington.

"The agreement signed during the Yunus administration remains ambiguous. It does not specify what percentage of US cotton must be used in a garment to qualify for duty-free treatment. Ultimately, the extent of the benefit will depend entirely on decisions taken by the Trump administration," he said.

A delegation of Bangladesh Capital Market Investors Association (BCIA) met Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan at the commission’s office on Sunday and placed an 11-point recommendation aimed at stabilising the capital market and restoring the confidence of local and foreign investors.

Handing over a letter to the BSEC Chairman, BCIA President Kazi Mohammad Nazrul said the country’s capital market has been passing through an acute crisis due to what he said 15 years of plunder and mismanagement under the previous Awami League government along the incompetence of the Khondoker Rashed Maqsood-led commission formed during the interim government’s tenure, reports UNB.

He expressed confidence that under Masud Khan’s leadership, the newly constituted commission would be able to steer the market towards stability and open a new chapter for the economy.

On the draft margin rules recently published by the commission, the BCIA said the proposed framework creates disparity in the distribution of loans against different shares, and demanded that the margin loan amount be made uniform across all listed securities.

The association also called for listing state-owned enterprises and multinational companies on the bourses within the next three months, with 80 percent of IPO shares reserved for general investors, application amounts capped at Tk 5,000, and the lottery-based allotment system reinstated.

Referring to Dhaka Stock Exchange’s recent move placing 62 companies under its “red zone” and issuing cautionary notices to investors, the BCIA said that before any of these companies are delisted, they should first be given two years to restructure.

It further recommended that directors of such companies be required to buy back all shares held by general investors at either the market price or the issue price, whichever is higher, before delisting proceeds.

The association pointed out that unlike most global bourses which are institution-driven, Bangladesh’s market is dominated by retail investors, who account for roughly 80 percent of participation.

It therefore urged that investor representatives be given a greater say in market governance, with coordination meetings between the commission and general investors’ representatives held four times a year.

Among other demands, the BCIA sought the introduction of a real-time monitoring system to instantly detect abnormal transactions and manipulative trading, along with punitive action against offenders.

It also proposed a special Tk 10,000 crore fund at 3 percent interest to boost market liquidity, to be channelled through ICB and various brokerage houses so that general investors can access loans at 5 percent interest for investment.

The association further demanded that mutual funds, described as the “lifeblood” of the market, be made to remain active, with each fund required to invest at least 80 percent of its assets in the market. Rather than extending the tenure of closed-end funds, it recommended converting them into open-end funds.

On corporate governance, the BCIA said listed companies frequently resort to irregularities and malpractice in their financial reporting, and called for implementation of the Financial Reporting Act, 2015 to ensure a transparent and accountable market.

It also pressed for the long-pending buy-back law to finally be enforced, noting that successive governments and commissions had promised but failed to implement it.

The association additionally proposed scrapping the existing categorisation of listed companies into A, B, N and Z categories, arguing that the classification creates unfair distinctions among shares.

Instead, it suggested introducing a rating-based system, such as A1, A2, A3 and A4, to help investors gauge the relative strength of companies.

BCIA said most investors in Bangladesh’s capital market lack adequate knowledge about the market and often fall victim to misinformation and rumours, resulting in financial losses.

It called for arrangements to introduce internationally recognised certification for financial advisers to guide general investors.

“We hope the chairman will look favourably on implementing our 11-point recommendations to build a developed and prosperous capital market,” the BCIA president said.

Walton Hi-Tech Industries PLC, one of Bangladesh’s leading electrical and electronics manufacturers, has signed a global distributorship agreement with Libya-based ASR Al Techniyah to expand its presence in North Africa.

Under the three-year agreement, ASR Al Techniyah, a private company registered in Tripoli, will serve as Walton’s authorised distributor, overseeing the sales, marketing and distribution of Walton products across Libya.

According to a company disclosure filed with the Dhaka Stock Exchange (DSE), the partnership aims to introduce Walton’s range of home appliances and electronics to Libyan consumers under mutually agreed terms.

The agreement marks another step in Walton’s strategy to strengthen its international presence by taking “Made in Bangladesh” technology to new markets.

Under the deal, ASR Al Techniyah will market and sell Walton-branded products, including refrigerators, televisions, air conditioners and washing machines.

Abdur Rouf, head of Walton Global Business Division, said the company’s innovative technology, modern designs, product quality, durability, energy efficiency, eco-friendly features and competitive pricing have helped it stay ahead of rivals in overseas markets.

He said the brand has gained consumers’ trust in many countries, with its presence now spanning 55 markets, including Libya.

Rouf added that Walton has already exported two shipments of refrigerators, air conditioners, televisions and washing machines to Libya this year. The company expects the expansion to support its entry into other North African markets.

Walton’s share price rose 0.16 percent on the DSE yesterday.

In fiscal year 2024-25, the company posted revenue of Tk 7,082 crore, down from Tk 7,512 crore a year earlier. Profit after tax also fell to Tk 1,036 crore from Tk 1,356 crore.