Maritime trackers received new reports of an attack on a ship in the Strait of Hormuz on Sunday, adding to concerns about Iran-related threats to energy supplies after Saudi Arabia shut down a vital oil pipeline.

The British navy-affiliated agency ‌UKMTO said it had a report of a projectile hitting a vessel as it moved through the Strait of Hormuz. The amount of damage and the status of the crew were unknown as of early Sunday, the agency said.

UKMTO's report came the day after Saudi Arabia said it had temporarily closed its East-West pipeline as a precaution after a drone attack that both Baghdad and Riyadh said had originated in Iraq, where Iranian-backed militias operate.

Ongoing attacks in the widening Middle East war could send energy prices even higher after a week that saw the cost of Brent crude surge back above $100 a barrel.

The 1,200-km (745-mile) East-West pipeline running across the Arabian Peninsula has served as the main route out for global supplies of Middle East oil for the past six months while the Strait of Hormuz has been largely shut by war.

It has been moving 4 million to 5 million barrels per day, amounting to 4% to 5% of global supply, sparing Saudi Arabia the brunt of the disruption that has crippled other Gulf oil and gas exporters.

There was no immediate claim of responsibility for the strikes on the pipeline. Satellite images showed black smoke rising from an area of the pipeline south of Medina. The attack resulted in some injuries and damage that was being assessed, the Saudi Foreign Ministry said without detailing the impact on exports.

US President Donald Trump, visiting Ireland to attend a golf tournament at one of his resorts, said Iran was probably to blame.

On Saturday, the Saudi Civil Defence said in a statement that a projectile fired by the Houthis had injured two people in Jazan region, and damaged several buildings, including a mosque.

SAUDI LEADER ASKS FOR MILITARY HELP

Oil prices shot up over the past week and the retail price of diesel in the United States surged past a record $6 a gallon as the United States and Iran both fired on tankers and the Iran-aligned Houthis in Yemen advanced along the Red Sea, potentially extending disruptions to another major oil route.

Washington now faces a dilemma over whether to help the Saudis fight the Houthis, risking further expansion of the war.

Saudi Arabia's de facto ruler, Crown Prince Mohammed bin Salman, phoned Trump on Thursday and asked for US military help fighting the Houthis, three sources told Reuters. They said the prince was told that Washington would not intervene directly for now but would help with intelligence.

Trump confirmed on Saturday that he had spoken to the crown prince, and said the Houthis had also phoned his administration and asked Washington not to become directly involved in the conflict.

Four Yemeni government sources told Reuters that the Houthis had seized the strategic island of Perim on Friday in the middle of the Bab el-Mandeb strait — the "Gate of Tears" at the mouth of the Red Sea.

IRANIAN OFFICIAL PLAYS DOWN OMAN MEETING

There have been no talks between the United States and Iran to end the conflict since a June agreement that collapsed within weeks.

In a post on X on Saturday, Ebrahim Azizi, head of the Iranian parliament's national security committee, said: "As long as the American side does not accept all of Iran's conditions, dialogue and negotiation are of no use."

Iran's Foreign Ministry announced on Friday that Iran would be attending a meeting with Gulf Arab states in Oman on Monday, at which the future of the Strait of Hormuz would be discussed.

But a senior Iranian official, speaking to Reuters on condition of anonymity on Saturday, played down the chances of a breakthrough, saying the meeting, called at Oman's initiative, was intended to discuss issues including the strait but was not expected to yield a signed agreement.

An agreement on routes through the strait between Iran and Oman will be presented at the meeting on Monday, which will also be attended by Iraq, but the strait will not reopen unless seven conditions conveyed by Iran to the US are met, a source told Tasnim news agency, without elaborating.

Iran wants its control of the Strait of Hormuz to be recognised, allowing it to collect fees from ships that use it, which Washington rejects. Oman, which controls the opposite bank of the strait, says it is negotiating with the agreement of other regional states.

In a major push to foster self-employment and drive grassroots economic growth, Bangladesh Bank today (13 September) issued a comprehensive guideline titled "Udyog: Upazila-Driven Youth Opportunity for Growth".

The program aims to hunt, identify, and finance prospective young entrepreneurs across all upazilas in Bangladesh.

Issued by the SME and Special Programmes Department, the circular directs Managing Directors and Chief Executive Officers of all scheduled banks to immediately implement the scheme.

The policy covers a wide array of legal ventures–including tech startups, agriculture, food processing, light engineering, renewable energy, and handicrafts–prioritising both new innovative ideas and existing business models.

To ensure funding reaches genuine and capable young creators, Bangladesh Bank established specific eligibility guidelines:

Age Limit: Applicants must be adult Bangladeshi citizens aged up to 28 years on the final date of application submission.

Local Residency: Candidates must be permanent residents of the respective upazila.

Clean Credit History: Applicants must not be loan defaulters. Any default status revealed during Credit Information Bureau (CIB) checks will result in immediate cancellation.

Furthermore, anyone who has previously taken a business loan from any bank or financial institution is ineligible.

Employment Status: Public, semi-government, and autonomous institution employees are excluded from applying.

No Collateral Required: To alleviate barriers for youth, loans under this program can be disbursed without collateral support.

The framework offers a maximum blended financing package of up to Tk20 lakh per selected entrepreneur, evaluated strictly against business requirements and proposed cost plans, according to the circular.

The funding is split equally: 50 percent bank loan (Up to Tk10 lakh) and 50 percent matching grant (Up to Tk10 lakh)

If a business needs Tk12 lakh, for example, the applicant receives Tk6 lakh as a bank loan and Tk6 lakh as a grant.

The grant and loan portions will be disbursed simultaneously into the recipient's bank account.

However, failure to repay the loan or misuse of funds will automatically convert the grant portion into an interest-free debt, recoverable under standard recovery laws.

Bangladesh Bank will nominate one Lead Bank for each upazila to execute and coordinate the program.

Any branch of scheduled banks will collect application forms. On the working day following the application deadline, branches will forward all applications to the respective Upazila Lead Bank, which will then channel them to the District Lead Bank and eventually to Bangladesh Bank's departmental offices.

A multi-stakeholder panel comprising central bank officials, scheduled bank representatives, successful entrepreneurs, industry leaders, and academics will evaluate business plans, market feasibility, and employment potential to make final selections.

Designated banks must sanction loans within 15 working days of final selection, adhering to their internal credit rules and central bank regulations.

All participating banks will also provide financial literacy training, mentoring, market linkage support, and assistance with business registrations to ensure long-term sustainability for the newly minted enterprises.

South Korea will support Bangladesh in developing a skilled workforce for the ship recycling, shipbuilding and ship maintenance sectors under a $15 million capacity-building and knowledge-sharing project, a senior official of the Korea International Cooperation Agency (Koica) said today (13 September).

The project, scheduled to run from 2027 to 2031, will focus on modern technology, advanced welding techniques, updated work practices and technical training to improve productivity and value addition in Bangladesh's ship recycling industry, said Hyunwoo Yang, deputy country director of Koica Bangladesh.

"South Korea is interested in supporting the development of modern technology and skills in Bangladesh's ship recycling sector," he said at a meeting with business and ship recycling industry leaders at the World Trade Centre in Chattogram.

Under the project, Koica will support infrastructure development, curriculum modernisation, teacher training and student training at the Bangladesh-Korea Technical Training Centre, according to the agency.

Yang said the Korean and Bangladeshi governments had agreed to work jointly on the initiative.

"Korean ship recycling companies want to recycle ships at yards in Bangladesh. That's why we conducted a study on Bangladesh's ship recycling sector," he said.

The study found a significant shortage of skilled workers in the industry, with only around 1–2% of the required workforce having the necessary skills, he said.

Koica plans to address the gap by expanding training opportunities across ship recycling, shipbuilding and ship maintenance.

The discussion was organised by the Chittagong Chamber of Commerce and Industry to assess the industry's demand for skilled workers and identify areas where Korean assistance could support the development of a smart and green ship recycling industry.

Chamber President Mohammad Amirul Haque said Chattogram was emerging as a major investment and logistics hub, while the government was planning to develop a green shipbuilding hub at Matarbari in Cox's Bazar.

"One of Asia's largest ship recycling industries is located along the coast of Sitakunda in Chattogram. So we welcome Korea's new initiative to build capacity and develop skilled human resources in this sector," he said.

Haque said South Korea had significant experience in technology and technical training, recalling its role in helping establish the foundations of Bangladesh's garment industry.

"We hope Koica's new initiative will help make the ship recycling sector more sustainable and develop a skilled workforce," he said.

He said shipyard owners were increasingly adopting modern technologies and converting their yards into green yards to make the industry more sustainable.

Industry leaders at the meeting said the training programme should not be limited to ship recycling workers. They called for skilled manpower development in shipbuilding and ship maintenance as well, saying these sectors could create wider employment opportunities and strengthen Bangladesh's maritime industrial base.

They also urged the authorities to develop internationally recognised skills so that trained workers could secure jobs in South Korea and other overseas markets.

A documentary on a feasibility study for skills development in Bangladesh's ship recycling industry was presented at the meeting by Koica expert Chung Yup Kim.

Bangladesh Ship Breakers and Recyclers Association President Mohammad Mohsin and adviser Zahirul Islam Rinku, Master Steel and Oxygen Ltd Chairman Master Abul Kashem, HR Ship Management CEO Mohammad Mahbubur Rahman, Bangladesh Technical Training Centre Principal Engineer Palash Kumar Barua, chamber directors and representatives of Koica and ship recycling companies attended the meeting.

The initiative comes as Bangladesh's ship recycling industry faces growing pressure to improve occupational safety, environmental management and compliance with international standards while preparing for greater competition in the global market.

Prime Minister Tarique Rahman has urged the Ministry of Agriculture to reduce Bangladesh's dependence on imported agricultural and food products by increasing domestic production of items that can be produced locally.

He also called for measures to make agriculture more productive and profitable while ensuring food security.

The prime minister made the remarks during a meeting with officials of the Ministry of Agriculture at the ministry's conference room after visiting the ministry from his office at the Bangladesh Secretariat this afternoon (13 September).

The meeting reviewed the overall situation in the agriculture sector, ongoing activities of the ministry and its future plans, according to the prime minister's Press Wing.

"To achieve this, greater emphasis should be placed on increasing domestic production by quickly taking research, improved varieties, modern technology, irrigation and mechanisation facilities to farmers," Tarique said.

He instructed officials to focus not only on increasing agricultural productivity but also on reducing farmers' production costs and ensuring fair prices for their produce.

According to a presentation by the ministry, mustard production has increased as part of efforts to reduce dependence on edible oil imports.

Mustard production rose from 824,000 metric tonnes in fiscal 2021-22 to 1.534 million tonnes in FY2024-25 and 1.541 million tonnes in FY2025-26.

The ministry also outlined measures to increase onion production and storage capacity, including introducing airflow technology for on-farm onion storage and expanding summer onion varieties.

It is also working to expand climate-resilient crop varieties that can withstand salinity, drought and waterlogging, the meeting was told.

On agricultural research, the ministry said 1,090 crop varieties had been developed, including 155 rice varieties. More than 1,000 agricultural technologies have also been developed, according to the presentation.

The meeting placed emphasis on agricultural mechanisation to reduce labour and production costs while increasing productivity.

The government plans to increase the development and production of locally made agricultural machinery and make equipment such as combine harvesters, reapers and rice transplanters available to farmers at affordable prices.

The ministry also presented plans to expand the use of solar power in agriculture.

There are currently 2,617 solar irrigation systems in Bangladesh. Expanding renewable energy-based irrigation could reduce farmers' irrigation costs and dependence on conventional fuels, officials said.

The meeting also discussed the Farmer Card programme, which aims to deliver government support directly to farmers.

The agriculture ministry has set a target of bringing 4.3 million farmers under the programme in FY2026-27.

It is preparing to distribute cards to around 110,000 farmers in the first phase, according to the meeting.

Agricultural mechanisation, canal excavation, tree plantation, and the storage and marketing of agricultural products were also discussed.

Government's greater reliance on large taxpayers -- both individuals and corporates -- to achieve its higher revenue target in the current fiscal year is putting additional pressure on the existing taxpayer base.

The Large Taxpayers Unit (LTU) under the VAT wing of the National Revenue Board has been assigned a revenue target 60-percent higher than its collection last fiscal year. And the income-tax LTU's target is nearly 53-percent higher than its collection in FY26.

The government has set an overall revenue-collection target at Tk 6.04 trillion for FY27, which is 46-percent higher than the amount collected in the past fiscal year.

The targets of the income tax and VAT LTUs have increased more than 14fold over the past two decades. In FY08, the government had set revenue targets at Tk 38 billion for the income-tax LTU and Tk 101.44 billion for the VAT LTU. For FY27, the targets have been raised to Tk 550 billion and Tk 1.40 trillion respectively.

The VAT LTU collected Tk 875 billion last fiscal year against a target of Tk 1.08 trillion, while the income-tax LTU collected Tk 360 billion against a target of Tk 440 billion.

Economists and tax officials have aired concerns over the ambitious targets, citing Bangladesh's narrow tax base and sluggish business environment.Bangladesh Economic Report

The number of large taxpayers has not increased significantly in Bangladesh. Rather, several large companies, including multinationals, have exited the country over the past decade.

The number of VAT LTU taxpayers has fallen to 106 companies from 162 in 2005.

The income-tax LTU is also heavily dependent on corporate taxes paid by private commercial banks.

Tax officials say the banking sector is facing multiple challenges, including high non-performing loans, while troubled banks are struggling to repay depositors, leaving limited scope for tax officials to collect additional revenue from them.

Bangladesh Institute of Development Studies (BIDS) Director-General AK Enamul Haque says Bangladesh's low tax-to-GDP ratio is not acceptable given the size of its economy.

"Taxmen should work for expansion of the tax base rather than force existing taxpayers to pay higher taxes," he told The financial Express.

Business Initiative Leading Development (BUILD) Chairperson Abul Kasem has said taxpayers recognised as top taxpayers for paying high taxes and maintaining compliance should not face "arbitrary harassment".Business Consulting Services

Tax officials should categorise compliant taxpayers separately to protect them from unnecessary scrutiny while pursuing the revenue target, he added.

Apurba Kanti Das, former tax member at the National Board of Revenue (NBR), says revenue collection depends on an ecosystem linked to the broader economic conditions of a country.

"Banks are among the largest taxpayers, but many are now under immense financial pressure."

He has suggested accelerating automation in tax administration as he thinks a shift away from manual systems could help increase revenue collection significantly.

Meanwhile, major sources of VAT collection include tobacco, telecommunications, gas and power.

VAT officials have said achieving the "unprecedented" target, which requires a quantum jump in collection, would be nearly impossible.

Such targets demoralise officials and discourage them from intensifying efforts when they know they are unlikely to come close to meeting them, they said.

"It is really frustrating for the tax department that all other departments of the government point fingers at taxmen for failure in achieving the target," says a field-level VAT official.

The NBR alone cannot increase the tax-GDP ratio through reforms unless other government departments undertake complementary reforms, the official adds.Economic Analysis Platform

NBR officials also fear a decline in VAT collection as they will have limited scope to monitor and assess receivable taxes under a new budgetary provision allowing businesses to submit VAT returns quarterly instead of monthly. The provision was introduced to reduce compliance hassles for businesses.

VAT officials feel the new system could make it difficult to assess potential revenue losses caused by power and gas shortages and industrial closures.

They have also said the tax culture among businesses in Bangladesh remains weak, with many businesses reluctant to pay VAT and treating tax payment as a lower priority.

Officials estimate that the VAT wing will lose Tk 14.50 billion due to the exemption of excise duty on deposits of up to Tk 0.4 million. The exemption on SIM cards is expected to result in another Tk 12 billion in revenue loss.

The gas sector is expected to cause a Tk 66-billion shortfall in VAT collection due to declining gas production and lower industrial consumption.

The LTUs were established under the Reforms in Revenue Administration (RIRA) project, with the income-tax unit set up in 2002 and the VAT unit in 2005.Banking Sector Analysis

The LTUs were established following recommendations from the International Monetary Fund (IMF) to boost tax collection from large enterprises.

American Chamber of Commerce in Bangladesh (AmCham) and the government have agreed to work jointly to facilitate an additional $5 billion in American direct investment into Bangladesh over the next five years.
The target was highlighted during AmCham's 30th Anniversary gala evening held at a hotel in the capital on Saturday, reports UNB, citing a press release.

Speaking at the event as chief guest, Commerce, Industries, and Textiles & Jute Minister Khandakar Abdul Muktadir reiterated the government’s full support for AmCham’s initiative to attract $5 billion in fresh US investment.

He emphasised that incoming investments should translate directly into employment generation, technology transfer, and expanded economic opportunities for Bangladesh.

Highlighting the need for an investor-friendly environment, the Minister stressed the importance of policy predictability, consistency, ease of doing business, and efficient trade facilitation.

He acknowledged that AmCham’s increasingly vital role in policy advocacy and as a bridge between the government and the private sector.

Speaking as a Special Guest, US Ambassador to Bangladesh Brent T. Christensen praised AmCham's 30-year legacy of advancing bilateral commercial ties.

“I am confident that as Bangladesh delivers on its commitments in the Agreement on Reciprocal Trade, we will see even more positive outcomes in the next 30 years and beyond,” he said.

Earlier in his opening remarks, AmCham President Syed Mohammad Kamal highlighted the Chamber's evolution into a robust platform for business and bilateral economic partnership.

Outlining future priorities, Kamal stressed the need for a clear 2-year energy roadmap with six-month milestones, an enabling investment climate, stronger intellectual property rights, cybersecurity measures, and the tangible implementation of regulatory reforms.

The milestone event also marked the launch of the "AmCham Excellence Award," announced by AmCham Vice President and MetLife Bangladesh CEO Ala Uddin Ahmad, to honor outstanding contributions across sectors.

AmCham Executive Committee Member Habib Bhuiyan delivered the closing remarks, expressing gratitude to participating dignitaries, member companies, and partner institutions for their three-decade-long support.

The Ministry of Commerce has suspended its decision to withdraw the bond facility for imports of 10-30 count cotton yarn and require importers to submit bank guarantees, pending further review.

In a letter to the National Board of Revenue (NBR) chairman today (13 September), the ministry said it had suspended the decision for further consideration.

The ministry had asked the NBR on 7 September to withdraw the bond facility for imports of 10-30 count cotton yarn in a move aimed at protecting local industries and facilitating access to raw materials for genuine exporters.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan Babu welcomed the latest decision, saying the BGMEA, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and the Bangladesh Textile Mills Association (BTMA) would meet shortly to discuss the issue and work towards a solution.

"I hope we will reach a consensus and make a decision under the leadership of the commerce ministry, in the interest of the country", he added.

The suspension comes amid a broader dispute between textile millers and apparel exporters over restrictions on imported raw materials.

The government previously halted the import of knit fabrics used by knitwear exporters under the new Import Policy Order, prompting concerns in the apparel sector that the restriction could hurt exports.

The BGMEA and the BKMEA had sought withdrawal of the provision in a letter to the commerce minister on 1 September. The Commerce Ministry subsequently held discussions on the issue.

The ministry had said local industries had developed the capacity to meet most of the knitwear sector's demand for raw materials, although some specialised imports were still necessary.

Exporters, however, argue that Bangladesh does not produce every type of knit fabric and that some high-value-added fabrics, buyer-specified materials and cheaper imported inputs need to be sourced from abroad to remain competitive.

Textile millers, on the other hand, maintain that local mills have sufficient capacity to meet the knitwear sector's demand and that restrictions on imports would reduce buyers' ability to dictate where raw materials are sourced.

Bangladesh exports around $39 billion worth of apparel products annually, with more than half coming from knitwear.

The 18th BRICS Leaders' Summit opened in New Delhi on 12–13 September 2026, drawing China's Xi Jinping, Russia's Vladimir Putin, Iran's Masoud Pezeshkian and UN Secretary-General António Guterres. Bangladesh, however, stayed away, citing the wording of the invitation and a trust deficit deepened by Sheikh Hasina's 5 August appearance in the Indian capital, and declined to send any official representative. The empty chair has reignited debate over where Dhaka–Delhi ties now stand. The Business Standard has talked to prominent geopolitics and security experts to weigh what the absence means for Bangladesh, its room for maneuver, and its fraught relationship with New Delhi

'They saw it through a plurilateral prism when we saw a bilateral slight'

M Humayun Kabir, former ambassador

BRICS is a plurilateral organisation. It is where a country such as Bangladesh has, in effect, been invited under a degree of pressure that this term comes into use — plurilateral. And my sense is that it is precisely in this bilateral-cum-plurilateral space that some of our difficulty lies. Take the fact that India invited our head of government as the chair of BIMSTEC.

The BIMSTEC chair, after all, may at any given time be Bangladesh, as it may be under SAARC. So our head of government was invited in that capacity, under the BIMSTEC-chair designation. From their side, technically, that is how they regarded our Prime Minister within the context of that conference or summit.

From our side, we took the view that they had invited the BIMSTEC chair, i.e. the office-holder, and not our Prime Minister as such. That is how we framed it where our Prime Minister was concerned. And it is because the framing on the two sides was somewhat different that, to my mind, this confusion arose and it is out of that confusion that things ended up as they did.

Now, had we gone, what might have come of it? There is something new taking shape there, though the final outcome I have not yet seen. What they are seeking is to deepen cooperation and, in that connection, to bring about a degree of digital-currency alignment, while increasing the use of each country's own currency.

In other words, if you do business in India, you may do it in the Indian currency; in China, in the Chinese currency. So they are attempting to build an alternative economic, or financial, structure. For a country like ours—one that works with everyone and carries a certain exposure, with trade and commerce running to all 11 of these member states—this matters.

In that situation, were we able to plug into this financial network, or something of the kind, our leverage would rise somewhat. I would then no longer have to worry that, having taken a nuclear power plant from Russia, we might be hit with American sanctions, because if my trade with Russia is conducted in taka or in roubles, sanctions imposed through the dollar lose much of their bite.

Then there is the point that was made about resolving matters through dialogue and diplomacy. For Bangladesh this holds especially true, because as a relatively small country, we always carry this kind of security concern.

In that light, if a general principle takes hold that everyone wishes to settle disputes through dialogue and diplomacy, and accepts as much, then there is an advantage in it for us.

And the third point is that the heads of state and government of 11 countries were present there. Our presence, therefore, could have created the opportunity to interact, and to share our thoughts and priorities, and so on. That carries a diplomatic value of its own. But since we were not there, we did not get that opportunity.

So, in that respect, attending would have been the better course. Even so, we tried to send a message: that we now have a spine — that we will not simply go wherever, and however, you wish. The requisite level of dignity and honour must be extended to us; only then do we wish to engage. That is the message that went out from our side.

Yes, in terms of the message, 'we are strong', we did genuinely demonstrate that Bangladesh is no longer the docile, compliant Bangladesh of old. That message has been delivered. The question now is how much we gained in material terms, and that remains to be seen.

And it seems to me that the Indians viewed the matter through a multilateral, or plurilateral, prism, whereas we viewed it from a bilateral angle. That mismatch bred the confusion.

M Humayun Kabir is a former ambassador and President and CEO of the Bangladesh Enterprise Institute (BEI).

'Not going now is temporary, joining BRICS ought to be our top priority'

Maj General (Rtd) Fazle Elahi Akbar, security expert

For Bangladesh, increasing cooperation and dialogue with the BRICS countries is very important, because for all these years our focus has been India-centric — we sat within a South Asia-centric frame. We were never especially serious about multilateralism; even with the OIC our engagement was minimal. Our day-to-day affairs — the economy, diplomacy, even national security, trade and transit — everything was South Asia-centric.

Because we remained South Asia-centric and India-centric for so long, India came to take us almost entirely for granted; and it reached the point where we were gradually losing our sovereign autonomy. From that perspective, we needed to break out of it. We are trying to do so now — but merely breaking out is not enough unless we open other windows. BRICS and the Shanghai Cooperation Organisation are exactly the windows we ought to jump into; and, if required, the OIC platform is very much a format to work through as well.

The more windows we have, the less the pressure from any one bloc or any one country. This, in fact, is how smaller countries survive — they keep their options open and stay in charge of their own course. They do not allow themselves to be sucked into a single black hole; and we were in that black hole for the last 16 years, under the previous fascist regime. So joining BRICS is now vitally important.

As to why we did not go to Delhi — why the invitation was not accepted — I think our state minister for foreign affairs has explained it amply. He was invited as the chair of BIMSTEC, not as Prime Minister, of course; and they also attached certain conditions. Those conditions we know: the return of the fascist leader who is in exile there, having been legally convicted, and likewise the killers of Hadi, who have also been in hiding. This has, in truth, been the pattern for a very long time — anyone wanted in Bangladesh takes shelter there. We have an extradition treaty, and even that has not been reciprocated, whereas in the past, even under the fascist regime, we complied on more than one occasion, several times over, to return their wanted persons into their custody.

Not going now is a temporary matter. But diplomatically, and for Bangladesh's foreign policy, joining BRICS and the SCO ought to be our top priority. We know that even in Hasina's day — in the time of fascism — the government of Bangladesh had applied; and despite our good relations with our neighbour, it was India that vetoed our entry. So we must now make the endeavour once again — to join BRICS, and the SCO as well. If not directly, then we must first become an observer and then, step by step, move into full membership, because this opens avenues to a new economic bloc and new opportunities for trade, for exchange, for technology, for everything.

Both these organisations are, in effect, Russia- and China-dominated; and in a changed, globalised world, this is what we should be looking towards — rather than remaining wholly India-centric, or centred on any single power.

Maj Gen (retd) Fazle Elahi Akbar is Chairman of the Foundation for Strategic and Development Studies (FSDS).

'BRICS is a separate matter, Bangladesh should have gone'

Dr Dilara Choudhury, academic

BRICS is a multilateral organisation. It has many members — around 11 countries, I believe — and these countries cooperate on trade, investment and economic matters. There is no security-pact dimension to it at all.

So the strain over Hasina — set that aside; that is a bilateral problem with India. What is the reason for staying away on India's account? This is not a bilateral issue; it is not a quarrel with India. Declining a bilateral visit to India because of the ongoing tension is one thing — but BRICS is an entirely separate matter. BRICS is a multilateral organisation, and I believe Bangladesh ought to have attended.

For Bangladesh, joining all these multilateral organisations is vital, because the country's economic development depends on trade and investment, and multilateral forums are precisely where that is advanced. So why did we not go? I see no justification for staying away simply because of the strain with India.

In the world now taking shape — as the American-led order gradually declines — bodies of this kind are especially important for the Global South, for what we call the Global Development Initiative. We will need cooperation with these countries on a range of economic issues, so we ought to join the Shanghai Cooperation Organisation.

Why? Because Bangladesh has been making this mistake from the very start. We never joined ASEAN — and we certainly should have, from the beginning. Now we cannot get into ASEAN at all. Our foreign policy was so India-centric that we simply assumed India was our friend, that India would solve all our problems, that staying close to India would deliver us enormous development. That India-centric mindset led us into many mistakes in the past. Now an opportunity has come — so why on earth would we let it slip?

Dr Dilara Choudhury served as a Professor and Chair of the Department of Government and Politics at Jahangirnagar University.

'It is just as well the PM did not go, but the road must stay open'

Parvez Karim Abbasi, academic

There is no point pretending, or telling ourselves, that everything in the Bangladesh-India relationship is sweet and harmonious. From day one after this new elected government took office, there have been push-ins across the West Bengal border, and that many Awami League leaders now in India, convicted absconders before our own courts, have been running all manner of propaganda. Most recently, around 5 August, there were Sheikh Hasina's remarks and the publicity given to them at the Foreign Correspondents' Club. Naturally, then, there is a trust deficit between the two governments. There is the issue of border killings, and a lingering question over the renewal of the water treaty.

So the question is whether the Prime Minister ought to have gone. The event has already taken place, so we can discuss it academically. My personal view is that, for a multilateral event convened at very short notice, and with so many outstanding problems, it is just as well that he did not go. It is not as though Bangladesh is saying we have broken off all contact with India. In future, once adequate diplomatic preparation and homework have been done, a visit between the two heads of government can certainly take place; that road must be kept open, because India is our neighbour and the two countries are, in many respects, interdependent.

But one question does remain. It is perfectly fine for the Prime Minister not to go — yet many countries sent their foreign ministers. Our own foreign minister is a seasoned diplomat; had he gone, there would have been a great deal of engagement to be had. Where else would you find so large a forum? BRICS has a concentrated focus on the Global South. In such a setting we might have met President Xi Jinping, or Vladimir Putin. Russia, after all, is our second-largest lender, for the Rooppur nuclear plant. There is Saudi Arabia, home to many Bangladeshi expatriates; Anwar Ibrahim, the Prime Minister of Malaysia; the UAE crown prince and others. There were opportunities for a great many side meetings.

And since we hold the BIMSTEC chair, the responsibility to raise our standing in global forums falls on Bangladesh. Many are asking what Bangladesh gained by not going. One gain could be the signal it sends to India: that, since we now speak of "Bangladesh First," when we do engage, our self-respect must remain intact, and we should go only in a conducive, enabling and friendly environment, with the groundwork for our outstanding issues laid down in advance.

On the other hand, we are living through an unstable period. The United States — the sole superpower — is gradually facing challenges on many fronts: economically, in trade, in investment, in technology, even in military capability. No one is entirely certain which way the global trend will turn; for the next 10 to 20 years there will be a transition, a period of global instability. At such a time Bangladesh ought to hedge and pursue multiple engagements.

We talk of bilateral free-trade agreements and of entering regional ones, yet ASEAN has closed its door to us. LDC graduation will come in another two years, and we will then lose the duty-free, quota-free access we now enjoy. We must secure our energy supplies, move towards renewables — for which rare earths are needed — and seek out new export markets. At this summit, at least the groundwork for all this could have begun. So I support the Prime Minister not going: there has not yet been adequate time, there is a trust deficit, and there is unease among the public. But we could still have sent the foreign minister, or a capable state minister.

Parvez Karim Abbasi is an Assistant Professor of Economics at East West University, Dhaka, and Executive Director of the Centre for Governance Studies (CGS).

'Little to gain, little to lose'

Md Tanvir Habib, academic

Bangladesh is not a current member of BRICS; it has been clear for some time that India is unwilling to admit other regional nations as equal members, because that would cut against its idea of control over South Asia.

Given that Bangladesh is not a prospective member, the visit would not have gained the Prime Minister, or the country, a great deal to begin with — beyond showing his face and mingling with a number of global leaders. So I do not think the decision carries major implications for Bangladesh. In bilateral terms, the Prime Minister has already made his maiden visits to Malaysia and to China; on the China front the relationship is strong, and he enjoys a good working relationship with the United States and others. Diplomacy is multi-pronged and multi-tiered, and that too will have factored into his calculation of whether joining, or not joining, BRICS carries any real consequence. Had some BRICS members been keen to see Bangladesh join, that might have made a difference — but Bangladesh already has good relations, on its own account, with the likes of Iran and Saudi Arabia.

BRICS has become interesting of late, in that it wants — with Russian assistance — to build a de-dollarised system. So the Prime Minister's staying away is, in a sense, a signal: that Bangladesh is not, at this moment, eager to enter arrangements that are geopolitically contentious. It is the same caution we saw over the Mecca Pact discussions earlier; Bangladesh is following a similarly careful path.

Certainly, attending the summit would have given him the chance to speak to the Indian political leadership and to other global leaders, and it is the bilateral meetings on the sidelines of such events that tend to be the real avenues for a diplomatic breakthrough. With the Indians, it might well have produced one. But before any breakthrough, Bangladesh had to convey its own requirements to India — and those requirements not being met was, I think, a key reason the Prime Minister chose not to go in the first place.

As for the other countries, I do not foresee any significant degradation. We have very good bilateral relations right across the group. With Russia, ties are not at any low ebb — they remain structured and continue in a routine manner. With China, the relationship is moving to a much higher plane, in bilateral trust and in trade, with Xi Jinping speaking of a more cultural, more civilisational approach. With the United States we have a historically good relationship, and with Europe a strong working one. The government has recently signed trade and framework agreements with South Korea, Japan and Australia, and work with the European Union is ongoing. So with every actor, inside BRICS and beyond it, Bangladesh has robust bilateral relations; the summit will not significantly affect them.

And I think every one of these countries would understand why the Prime Minister did not go — because he cannot visit unless something is forthcoming for him. His diplomatic success required a measure of compromise from the Indians, and the absence of that is the major reason he stayed away.

Md Tanvir Habib is an Assistant Professor at the Department of International Relations at the University of Dhaka.

Bangladesh Bank yesterday instructed banks to follow new rules allowing businesses to import goods through open-account arrangements, giving importers greater flexibility to pay for shipments without opening letters of credit (LCs).

Under an open-account arrangement, sellers ship goods with the understanding that payment will be made at a later date.

The BB issued the clarification two weeks after the commerce ministry issued the Import Policy Order (IPO) 2026-2029, which allows buyers and sellers to enter into direct purchase and sale contracts without opening LCs, irrespective of the value of the transactions.

The order will remain in force until December 31, 2029.

For export-oriented industries, the BB said the import policy order contains specific provisions governing the import and procurement of production inputs.

Under the provisions, such enterprises may procure inputs from local sources in local currency through back-to-back LC arrangements and on a free-of-cost (FOC) basis.

The BB said the new order also provides guidance on the applicability of the bonded warehouse system for the import and procurement of production inputs.

The central bank advised authorised dealer banks -- lenders permitted to buy, sell and manage foreign currencies -- to comply with the provisions of the new order and relevant foreign exchange regulations when settling import transactions and payments for locally sourced inputs.

“The latest guidance is expected to further harmonise foreign exchange procedures with the new import policy framework, enhance flexibility in trade transactions, and facilitate export-oriented industries through simplified sourcing and payment arrangements,” said a senior BB official.

Bangladesh Bank has issued guidelines to authorised dealer (AD) banks for implementing the Import Policy Order 2026-2029, which allows permissible industrial and commercial goods to be imported without opening letters of credit (LCs), subject to existing foreign exchange regulations.

The Ministry of Commerce introduced the new Import Policy Order through SRO No. 308-Ain/2026 on 24 August 2026. It will remain effective until 31 December 2029 or until a new import policy order is issued, whichever comes first, Bangladesh Bank said in a circular today (13 September).

Under paragraph 6(3) of the order, all permissible goods for industrial and commercial purposes can be imported through purchase and sale contracts without opening LCs, regardless of the value of the imports.

However, authorised dealer banks must ensure that all such transactions comply with applicable foreign exchange regulations, the central bank said.

The circular also outlined provisions under paragraph 25 of the new order concerning the import and procurement of production inputs by export-oriented industrial enterprises.

Such enterprises may procure production inputs from local sources in local currency through back-to-back LC arrangements and on a free-of-cost (FOC) basis, according to the guidelines.

The circular also provided guidance on the applicability of the bonded warehouse system for importing and procuring production inputs.

Bangladesh Bank instructed AD banks to ensure compliance with the Import Policy Order 2026-2029 and relevant foreign exchange regulations when settling import transactions and payments related to locally sourced production inputs.

The central bank said the guidelines are intended to align foreign exchange procedures with the new import policy framework and provide greater flexibility in trade transactions, particularly for export-oriented industries.

The Insurance Development and Regulatory Authority (IDRA) will facilitate the disbursement of Tk23.03 crore in long-pending insurance claims to 5,868 policyholders tomorrow (14 September) under the second phase of its special claim settlement programme.

According to the regulator, the claims totalling Tk23,03,56,971 pertain to policyholders of five life insurance companies.

IDRA is arranging funds from various sources, including assets and security bonds of the concerned insurers, to settle legitimate claims that have remained unpaid for an extended period.

Under the second phase, Padma Islami Life Insurance Company will pay around Tk12 crore to 3,600 policyholders.

Homeland Life Insurance Company will settle Tk4.98 crore for 1,145 policyholders, while Fareast Islami Life Insurance Company will pay Tk5 crore to 580 policyholders.

Sunflower Life Insurance Company will pay Tk55.30 lakh to 300 policyholders, and Sunlife Insurance Company will settle Tk50.18 lakh for 243 policyholders.

The latest initiative is part of IDRA's broader effort to address the longstanding claim settlement crisis in the insurance sector, where thousands of policyholders have been waiting for years to receive legitimate dues.

According to IDRA data, insurers had received claims worth Tk10,611 crore across the life and non-life segments by March 2026. Of this, Tk7,779 crore, or 73.31%, remained unsettled. The situation is particularly severe in the non-life segment, where 88.7% of claims remained unpaid.

In the life insurance sector alone, claims worth Tk6,812.67 crore were outstanding as of March 2026, with Tk4,410.12 crore, or 64.73%, remaining unsettled, according to data cited by IDRA.

Against this backdrop, IDRA has prioritised the settlement of long-pending legitimate claims, particularly those involving financially distressed insurers. The regulator has been working with several troubled life insurance companies to arrange funds by liquidating assets and using other available financial resources. IDRA Chairman Mir Nadia Nivin earlier said clearing nearly Tk7,000 crore in outstanding claims is among the authority's top priorities.

The second phase follows the first round of payments made on 3 September, when IDRA facilitated the settlement of Tk14,51,03,146.58 in claims for 2,549 policyholders of seven life insurance companies.

Including the latest phase, IDRA's special initiative will have facilitated the settlement of about Tk37.55 crore in claims for 8,417 policyholders.

The first phase covered Baira Life Insurance, Fareast Islami Life Insurance, Golden Life Insurance, Homeland Life Insurance, Padma Islami Life Insurance, Progressive Life Insurance and Sunflower Life Insurance.

IDRA said the initiative is aimed at expediting the settlement of valid long pending claims and restoring policyholders' confidence in the insurance industry.

The authority has indicated that the claim settlement drive will continue in phases, with the remaining legitimate claims to be considered after verification and scrutiny.

The initiative comes at a time when the insurance industry is facing a serious confidence problem stemming from delayed claim payments, financial weaknesses among some insurers and regulatory concerns. Ensuring timely payment of legitimate claims is therefore seen as critical to rebuilding trust in the sector and encouraging greater participation in insurance.

IDRA has also been pursuing broader reforms, including stronger supervision of insurers and measures to improve financial discipline, as part of efforts to strengthen the overall insurance sector.

High government taxes, expensive fuel, steep ground-handling charges and congestion caused by Dhaka airport’s single runway are pushing up airlines’ operating costs, expenses that ultimately land on passengers’ ticket prices, an airline managing director said on Saturday.

Mohammed Abdullah Al Mamun, managing director of US-Bangla Group and US-Bangla Airlines, made the observations at the policy conclave “World-Class Aviation for Bangladesh’s Economic Advancement”, organised by Bonik Barta at a conference centre in Dhaka.

A passenger travelling from Dhaka to Kuala Lumpur pays around Tk 9,890 in government tax and excise duty, Mamun said, against around Tk 2,000 on the Kuala Lumpur-Dhaka leg, a difference of around Tk 7,000.

US-Bangla alone loses around Tk 20 lakh a day due to the single-runway constraint, while congestion causes delays as aircraft queue for landing and departure

He cited similar disparities on other routes. A passenger departing Dhaka for Singapore pays around Tk 9,890 against around Tk 5,800 on the return leg. For Muscat, the figures are around Tk 10,000 from Dhaka against Tk 3,000 on return, while Dubai-Dhaka costs around Tk 4,000 against around Tk 10,000 from Dhaka.

“Fare will be high,” Mamun said, arguing that airlines have to factor such charges into ticket prices.

The burden is significant on domestic routes too, he said. A Dhaka-Jashore journey draws Tk 500 in VAT and Tk 200 in tax, with overall airport-related charges reaching around Tk 1,200.

Fuel is another factor. Mamun said aviation fuel in Bangladesh is currently more expensive than in Kolkata.

He also pointed to a large disparity in ground-handling charges. US-Bangla pays around Tk 97,000 for ground handling in Kuala Lumpur, he said, while a Malaysian airline coming to Dhaka can be charged around Tk 3 lakh for the same service.

Aeronautical, overflying and parking charges for a Boeing aircraft in Kuala Lumpur amount to around Tk 15,000, he said, against ground-handling charges of up to Tk 2.25 lakh in Bangladesh.

“An airline, at the end of the day, prices its ticket based on how much it costs to land and operate in a country,” he said.

Mamun said a level playing field was necessary for the aviation sector to grow. He pointed out that Kolkata and Kuala Lumpur each have four ground-handling companies, while Bangladesh remains wary of allowing more than one operator over concerns it could hurt Biman Bangladesh Airlines.

US-Bangla received a ground-handling certificate in 2023 and was capable of providing the service under the relevant rules and global certification, but had not received a licence, he said.

Bangladeshi airlines also have to pay ticket-sale commissions that some major foreign carriers do not, Mamun added.

The single runway at Hazrat Shahjalal International Airport is another major source of expense, Mamun said. Aircraft can spend around 20 minutes taxiing because of congestion, he said, adding that a Boeing can burn an additional 300-400kg of fuel as a result, an Airbus around 900kg and an ATR around 75kg.

Mamun said US-Bangla alone suffers losses of around Tk 20 lakh a day because of the single-runway constraint. The congestion also affects punctuality, with aircraft left waiting in queues for both landing and departure, he said.

Mamun also criticised the planning process for the Third Terminal, saying domestic airline operators were not properly consulted on the facilities they needed.

“The Third Terminal is for whom? First of all, it is for the operators, because operators facilitate the passengers,” he said.

He argued that Bangladesh’s ambition to become an aviation hub would ultimately depend on domestic airlines rather than foreign carriers. Air Commodore Md Nur-E-Alam, member (air traffic management) of the Civil Aviation Authority of Bangladesh (CAAB), told the programme that Hazrat Shahjalal International Airport can currently handle around 20-22 flights an hour.

With high-speed taxiways reducing runway occupancy time, CAAB expects the figure could eventually rise to 26-28 flights an hour, he said.

He acknowledged the limitations of a single runway and said a dependent runway was being considered, though development around the airport and shortage of space complicate plans for another runway and its associated facilities.

Civil Aviation and Tourism Minister M Rashiduzzaman Millat said the government was changing civil aviation rules after 42 years and wanted industry stakeholders to have a role in the process.

Addressing airline representatives, he said the government wanted to “give space to the stakeholders” and would invite them to a meeting before the rules were finalised.

“We will give you letters to join the meeting, and we will discuss and finalise the matter,” the minister said.

The Chattogram Garments Accessories Association (CGAA) has urged Bangladesh Bank to simplify the documentation and payment process for back-to-back letters of credit (LCs), saying repeated approvals are delaying payments and squeezing the working capital of 100% deemed exporters.

In a letter to the central bank governor on 9 September, the association said manufacturers of garment accessories and packaging materials face prolonged delays because delivery challans, commercial invoices and other LC documents often have to pass through garment factories before reaching banks.

The letter was signed by Jamil Ahmed, acting president of CGAA and managing director of Britannia Label BD Ltd.

The association said that even when deemed exporters prepare all LC-required documents, they cannot always submit them directly to the concerned bank. Instead, documents are first sent to the garment factory for an authorised person's signature or "party acceptance", after which the factory submits them to the bank.

The bank may then return them to the factory for another approval or acceptance before payment or maturity is processed.

CGAA said the repeated movement of documents between deemed exporters, garment factories and banks causes processing delays, duplicate verification and approval, delayed payment or maturity, blocked working capital and cash-flow pressure.

It also raises banking and administrative costs and can result in discrepancy charges for procedural issues beyond suppliers' control.

CGAA seeks UCP 600-compliant LC process

The association has sought a policy review of whether the practice complies with the International Chamber of Commerce's UCP 600, the internationally recognised rules governing documentary credits.

It argued that required documents should primarily be determined by the relevant LC. Where documents are properly prepared and compliant, additional post-delivery party acceptance or repeated approval should not be mandatory unless specifically required by the LC, law or Bangladesh Bank directives.

CGAA asked Bangladesh Bank to review the practice and issue clear guidelines for commercial banks. Its seven-point proposal includes allowing deemed exporters to submit documents directly to banks; removing mandatory party acceptance unless explicitly required by the LC; requiring banks to examine documents strictly under LC terms and, where applicable, UCP 600; and notifying suppliers of discrepancies within prescribed rules and timeframes.

It also called for an end to repeated submission of documents to garment factories solely for internal approval, no discrepancy fees for bank processing delays or issues beyond suppliers' control, payment or maturity within the prescribed timeframe for compliant documents, and a uniform, simplified, digital and time-bound SOP for back-to-back LCs involving 100% deemed exporters.

Industry seeks stakeholder discussion

CGAA said a practical solution could be developed through discussions among Bangladesh Bank, commercial banks, garment manufacturers and deemed exporters.

It requested an open discussion to identify the root causes and establish a transparent, faster procedure.

The association said reducing unnecessary document movement, duplicate approvals, payment delays and unjustified charges would help deemed exporters manage working capital and cash flow more effectively while improving export-sector efficiency.

The plan was discussed earlier this month when a team of the Washington-based multilateral lending agency had meetings with Finance Minister Amir Khosru Mahmud Chowdhury in Dhaka.

IDA's lending terms are highly concessional, meaning that IDA credits carry almost no or low-interest charges. Its funds are allocated to the recipient-countries in relation to their income levels and record of success in managing their economies and their ongoing IDA projects.

Historically, Bangladesh is the second-largest recipient of IDA credits worldwide.

"Our joint objective should be to reach an overall disbursement rate of 25 per cent in FY27, equivalent to US$2.03 billion," Jean Pesme, World Bank's Division Director for Bangladesh, wrote in a recent letter to the finance minister in reference to their meeting early September.

He also disclosed the proposed FY27 pipeline for Bangladesh totaling some $2.61 billion.

Mr Pesme further wrote that as the proposed FY27-28 tentative programme would substantially exceed Bangladesh's performance-based IDA21 allocation, "we will need to make adjustments, including accessing additional IDA windows and reallocating resources from underperforming projects".

He sought government's continued assistance in securing the necessary approvals, particularly for operations planned for FY27 Q1 and Q2, to support timely disbursement of the funds.

In FY26, Bangladesh received $1.27 billion from the IDA followed by $2.01 billion in FY25, $1.60 billion in FY24, $1.85 billion in FY23, $1.55 billion in FY22, and $1.30 billion in FY21.

Under the FY27 pipeline Bangladesh is likely to get $59.67 million from IDA for 'Learning Acceleration in Secondary Education Operation Project', $95 million for 'Bangladesh Resilient Urban and Territorial Development Project', $140 million for 'Chattogram Water Supply Improvement Project' and $300 million for 'Learning Enhancement and Acceleration in Primary Education in Bangladesh project".

Also, for the 'Bangladesh One Health Project', the World Bank may disburse $225 million from IDA, $70 million for 'Dhaka MRT Development (Line-2) and Institutional Strengthening Project", $142 million for 'Bangladesh: Digital Service Transformation for Access and Resilience Project, and $400 million for 'Bangladesh Strategic Flood Resilience Program'.

Moreover, 'Bangladesh Coastal Resilience Project' may receive $230 million, 'Accelerating Clean Energy Investment Programme (IDCOL Renewable Energy Facility) Project' may receive $350 million, the 'PFM Reform Programme for Modern, Transparent, and Inclusive Public Financial Management' may receive $250 million and 'Bangladesh Agriconnect' may receive $350 million.

A senior finance division official told The Financial Express the World Bank gave importance on effective use of IDA resources as the money comes from "generosity" of the member-countries.

He said the World Bank officials also emphasised timely approval for projects so that disbursements can be made as planned.

"World Bank's low-cost loan and grants help to accelerate socioeconomic growth and reduce poverty in Bangladesh," he said.

Bangladesh so far has received over $45 billion in commitments from the World Bank's IDA programme.

The Executive Committee of the National Economic Council (ECNEC) is set to hold its third meeting of the 2026-27 fiscal year on Wednesday, with a 15-project agenda spanning transport, defence, health, water resources and land management sectors, according to a notice issued by the Planning Division.

The meeting will be held at 10:00 am at the Cabinet Room of the Secretariat, chaired by Prime Minister and ECNEC Chairman Tarique Rahman, according to the notice.

Under the Physical Infrastructure Division, the committee will examine the Dhaka Mass Rapid Transit Development Project (Line-5): Southern Route, to run from September 2026 to August 2033 under the Road Transport and Highways Division.

Also on the list are upgradation of district highways under Rajshahi Road Zone and under Chattogram Road Zone in its third phase, both under the same division, reports UNB.

Defence-related infrastructure proposals include the second phase of Barisal Cantonment establishment (July 2026-December 2030) and construction of accommodation and other facilities for naval personnel in the Khulna Naval Zone (July 2026-June 2029), both proposed by the Ministry of Defence.

The Khulna Drainage System Development Project (first revised), running from July 2020 through June 2027 under the Local Government Division, is also listed, alongside two railway projects from the Ministry of Railways: the Implementation of Electric Traction Along the Narayanganj-Dhaka-Joydebpur Section of Bangladesh Railway and the first-revised project for a new dual-gauge railway line from Bogura to Sirajganj.

Under the Industries and Energy Division, ECNEC will review the Improved Working Conditions and Social Protection for Workers in the Textile and Leather Sector project from the Ministry of Labour and Employment, and the first-revised upgradation and expansion of the electricity distribution system in Manpura island area under the Power Division.

Three proposals fall under the Socio-Economic Infrastructure Division, all from the Health Services Division of the Ministry of Health and Family Welfare and the Financial Institutions Division: Health System Strengthening through MNCH Services Improvement and NCDs Control, Integrated Health System Response to Fight Against TB, HIV/AIDS and Malaria in Bangladesh, and Financial Sector Support Project-II or FSSP-II.

Rounding off the approval list under the Agriculture, Water Resources and Rural Institutions Division are the construction of the Musapur Regulator with integrated flood and river management and drainage improvement of the Chhoto Feni and Bamni rivers, part-1 from the Ministry of Water Resources, and the second-revised Digital Land Management System project, covering digital land surveys in three city corporations, one pourashava and two rural upazilas (July 2018-December 2028) from the Ministry of Land.

The notice also lists 15 additional projects already approved by the minister concerned to be placed before ECNEC for information.

These include the second-revised Automation of Land Management project and the first-revised construction of the Bangladesh Red Crescent Society's national headquarters, both from the Ministry of Land and the Ministry of Disaster Management and Relief, respectively.

Also featured are the first-revised Establishing Green Belt at Bhasan Char and Reforestation of areas affected by Rohingyas in Cox's Bazar, from the Ministry of Environment and a project on strengthening research, conservation and development of indigenous poultry from the Ministry of Fisheries and Livestock.

Infrastructure items on this list include the first-revised establishment of a telecommunication network in economic zones, replacement of ageing and risky bridges in the Rangpur zone, construction of an RDA building from the fifth to tenth floor, construction of a quarter guard and ancillary infrastructure at Jalalabad Cantonment, and preparation of a Digital Elevation (3D) Model of Sylhet division to enhance flood forecasting capacity.

Education, social welfare and sports-related projects for information include infrastructure development at Cantonment Public School and College, Saidpur; further infrastructure development at Military Collegiate School, Khulna; the first-revised Strengthening Social Protection for Improved Resilience, Inclusion and Targeting (SSPIRIT) project; and development works at the Barguna and Dinajpur district stadiums.

Besides, the second-revised drilling of the Sylhet-10 exploration well, under the Energy and Mineral Resources Division.

A crude oil tanker of Bangladesh Shipping Corporation (BSC), MT Ninemia, arrived at Chattogram port from Saudi Arabia on Saturday.

Carrying 1 lakh tonnes of oil, the ship sailed through the Suez Canal, the Mediterranean Sea and the Strait of Gibraltar before going around South Africa’s Cape of Good Hope.

To avoid the Bab el-Mandeb Strait amid tensions, the detour stretched to 50 days. Besides, it cost an additional Tk 66.63 crore.

Had the vessel taken the regular route from Yanbu through the Red Sea and Bab el-Mandeb, the Indian Ocean and then to Bangladesh, the voyage from Yanbu to Chattogram would have taken around 13 to 15 days, officials said.

After the US-Israel war on Iran led to disruption in the Strait of Hormuz, Bangladesh had been increasingly relying on shipping routes through the Red Sea for oil and other energy imports from the Middle East.

But as Yemen’s Houthi rebels have tightened their grip on the Bab el-Mandeb Strait, a narrow waterway located at the mouth of the Red Sea, the escape route for a sizable chunk of the Middle East’s oil is looking increasingly shaky.

As a result, Bangladesh’s imports from Saudi Arabia and other Middle Eastern countries face significantly longer routes and higher transport costs. The development is significant for Bangladesh because Saudi Arabia is a key source of crude oil, urea, diammonium phosphate (DAP) fertiliser, liquefied petroleum gas (LPG) and methanol.

Bangladesh imported 29.98 lakh tonnes of goods worth Tk 21,307 crore from Saudi Arabia in the fiscal year 2024-25. The volume rose to 30.41 lakh tonnes, worth Tk 25,673 crore, in FY2025-26.

In the first two and a half months of the fiscal year 2026-27, Bangladesh imported about 526,000 tonnes of goods worth Tk 5,604 crore from the Gulf country.

Of the 30.41 lakh tonnes imported from Saudi Arabia in 2025-26, crude oil accounted for 13 lakh tonnes, urea 6.07 lakh tonnes and DAP 3.27 lakh tonnes.

NO IMMEDIATE RISK TO FUEL SUPPLIES

Bangladesh relies on Saudi Arabia and the UAE for crude oil imports, although its dependence on the Middle East for refined petroleum products is minimal.

The country now sources diesel and other refined fuels from a wider group of suppliers under government-to-government arrangements and international tenders.

Recent procurement has involved suppliers from China, Malaysia, the UAE, Indonesia, Thailand, India and Oman, while crude oil imports remain concentrated in Saudi Arabia and the UAE.

Under government-to-government arrangements, BPC imports Arabian Light crude from Saudi Arabia and Murban crude from the UAE.

Monir Hossain Chowdhury, joint secretary of the Energy and Mineral Resources Division who oversees fuel issues, told The Daily Star that Bangladesh currently faces no immediate risk to fuel supplies because stocks remain adequate and refined petroleum products continue to arrive normally from alternative sources.

According to Bangladesh Petroleum Corporation (BPC) data, Bangladesh’s annual petroleum demand is about 72 lakh tonnes, while Eastern Refinery Ltd (ERL) refines about 15 lakh tonnes of crude oil, all of which is imported.

“Our stocks are sufficient. I can assure you that we have at least 35 days of diesel stocks.

There has been no interruption in the supply chain so far, and no supplier has told us that they will be unable to supply,” said Monir.

He said Bangladesh does not significantly depend on the Middle East for refined petroleum products, limiting the immediate impact of disruptions around the Bab el-Mandeb Strait.

Crude oil imports, however, remain a concern as Bangladesh sources crude from the region.

Asked about the possibility of higher transport costs as crude vessels take longer routes, Monir said such additional costs may have to be borne if the security situation persists.

“We may have to incur higher costs, but as long as the supply chain remains secure, we have nothing to be anxious about,” he added.

Apart from the MT Ninemia, another tanker carrying about 1 lakh tonnes of crude oil from the UAE’s Fujairah port is scheduled to sail on September 14-15 and reach Chattogram on September 29.

BPC officials said the vessel does not need to pass through the Bab el-Mandeb Strait and is therefore expected to arrive on schedule.

Even so, officials are becoming increasingly concerned about the broader impact of rising global oil prices. Brent crude recently crossed the $100-a-barrel mark, which could push up the price of refined petroleum products.

FERTILISER MAY FACE RENEWED PRESSURE

The disruption risk extends to fertiliser imports, especially urea and DAP, for which Bangladesh relies significantly on Saudi Arabia.

In FY 2025-26, Bangladesh imported 14.79 lakh tonnes of urea, of which 6.06 lakh tonnes came from Saudi Arabia. During the same period, the country imported 7.81 lakh tonnes of DAP fertiliser, including 3.27 lakh tonnes from Saudi Arabia.

Any prolonged diversion of vessels away from the Bab el-Mandeb could therefore raise freight costs and extend delivery times for fertilisers.

Md Mosharraf Hossain, chairman of the Bangladesh Fertilizer Association, said fertiliser supplies could come under renewed pressure if growing Houthi control along Yemen’s Red Sea coast disrupts shipping through the Bab el-Mandeb Strait.

“There is already anxiety and concern, and we have already started discussions with the exporters,” he said.

Mosharraf said fertiliser imports need to be expedited, as the upcoming Rabi season will require adequate supplies for crops including potatoes, corn, linseed, oilseeds, onions and garlic.

He thinks any disruption or delay in fertiliser supplies during the Rabi season could create serious problems for agricultural production.

TENSION MAY HURT FOOD EXPORTS

Ahsan Khan Chowdhury, chairman and chief executive officer of PRAN-RFL Group, said Bangladesh exports about $200 million worth of agro-processed food products to Saudi Arabia each year.

He said PRAN has significant business dealings with Saudi Arabia. Any disruption or delay in shipments could therefore affect business operations.

“If shipments are affected, the impact will naturally be felt in our business,” he said.

However, Ahsan expressed optimism that the situation would not continue for long and that business activities would eventually return to normal.

“We believe the situation will not prolong. Ultimately, things will be okay,” he said.

Bangladesh’s wheat imports are expected to fall by 11 percent to 66 lakh tonnes in the 2026-27 marketing year as high global prices, large stocks and uncertainty over global supplies weigh on demand.

The country relies on imports for more than 80 percent of its wheat-based food needs. It imported 74 lakh tonnes of wheat in the previous marketing year, according to a recent United States Department of Agriculture (USDA) report on Bangladesh.

The wheat marketing year runs from July to June.

The USDA said disruptions to grain shipments from Russia and Ukraine had reduced export supplies from the Black Sea, making global supply and trade flows less predictable for countries that depend heavily on imports.

US wheat export prices have increased by $26 per tonne since July. Hard Red Winter (HRW) wheat reached $321, or more than Tk 39,500, per tonne in August, partly because the disruptions increased market volatility.

“Because Bangladesh’s wheat import market is highly price-sensitive, higher global prices are expected to reduce import demand,” the report said.

LARGE STOCKS TO LIMIT FRESH IMPORTS

The private sector imported a large volume of wheat last year, pushing total imports to a record high, the USDA said. Private millers and traders are now holding substantial stocks, which are expected to reduce the need for fresh imports this year, particularly if global prices remain elevated.

Private-sector wheat imports rose 16 percent to nearly 66 lakh tonnes last year, while public-sector imports increased 61 percent to 7.51 lakh tonnes.

The increase in public-sector imports was largely driven by purchases from the United States after the government signed a memorandum of understanding (MoU) with US Wheat Associates.

Under the MoU, Bangladesh procured about 7.45 lakh tonnes of US wheat during the period, according to the USDA.

The government has committed to buying up to 7 lakh tonnes of US wheat annually until 2030. It has already contracted around 2.2 lakh tonnes for this year.

Despite the expected decline in imports, the USDA forecasts wheat consumption at 78 lakh tonnes this year, 4 percent higher than its previous estimate.

Demand for wheat flour remains strong among households and industries producing biscuits, confectionery, pasta, noodles and bakery products.

“As rice prices have remained high for more than a year, many households are now consuming more wheat flour than before,” the USDA said.

LOCAL PRODUCTION REMAINS LARGELY UNCHANGED

The USDA kept its forecast for local wheat production unchanged at 10.5 lakh tonnes.

It said both wheat acreage and production have remained largely stagnant in recent years.

“Despite strong domestic demand for wheat and wheat flour, farmers have shown limited interest in expanding wheat cultivation,” the report said.

Farmers can earn higher returns from other crops, such as vegetables and corn, during the same Rabi season. This reduces their incentive to use more land for wheat, the USDA said.

The agency also identified the limited availability of high-yielding wheat varieties suited to local conditions as a major constraint on production.

These factors are expected to continue limiting any significant increase in wheat acreage and production this year.

The premier bourse has moved to expand its stake in the proposed clearing company and ensure dominance on its board before the company is registered with the securities regulator and comes into operation.

To this effect, a proposal to amend the articles of association of Central Counterparty Bangladesh Ltd. (CCBL) will be placed at the EGM (extraordinary general meeting) to be held on Monday.

Shareholders of the Dhaka Stock Exchange (DSE) said they want a higher stake - currently 45 per cent under the existing rules - in the clearing company, as the CCBL's revenue would mostly come from daily transactions on the premier bourse.

The resolution to be placed at the meeting will also propose changing the board structure of the CCBL and removing other provisions that bar the DSE's dominance in the clearing company.

Under the existing rules, the CCBL's board has 14 members, including its chairman, seven of whom are independent directors. The DSE's proposal seeks a seven-member board, including two independent directors.

Presently, the exchange's shareholder directors are not allowed on the board of the clearing company - a restriction that will change if the DSE's proposal is approved and executed.

Insiders said the DSE's shareholder directors have been opposing the provision excluding them from the CCBL's board, which they say is why the company has not become operational even six years after its formation.

The CCBL would provide clearing and settlement services for Bangladesh's capital market. In the absence of any clearing company, the exchanges currently provide these services themselves.

Some other proposed changes to the articles of association indicate that the DSE wants full control over the clearing company. Speaking to the FE, some shareholders of the prime bourse acknowledged as much.

Minhaz Mannan Emon, a DSE shareholder director, said the CCBL's board has remained non-functional because of too many independent directors.

Under the existing board structure, 12 commercial banks hold a 15 per cent stake in the CCBL, while the Chittagong Stock Exchange holds 20 per cent and the depository authority holds the remaining 20 per cent.

The resolution to be placed at Monday's meeting proposes excluding the banks' representative from the CCBL's board.

The current provision requires approval from the Bangladesh Securities and Exchange Commission (BSEC) for the appointment of independent directors to the CCBL, and stipulates that the chairman be selected from among the independent directors.

But the resolution proposes selecting the chairman from among the DSE's shareholder directors, without BSEC's permission.

As per the existing articles of association, the appointment of the CCBL's managing director and any extension of their tenure should be carried out in line with regulatory approval. The new proposal instead suggests that the managing director's appointment and tenure extension be governed by the appointment contract.

The resolution also seeks the removal of other provisions, such as the requirement for the managing director to serve as member secretary of all board committees except the risk management committee.

Presently, the CCBL's managing director is also required to submit a report to the BSEC and the CCBL's board on the company's administrative activities and functions, and on the implementation status of relevant laws, rules, regulations, bye-laws, directives, or orders. But the DSE's proposal seeks to eliminate the managing director's obligation to submit reports to the commission.

Asked whether the changes to the CCBL's articles of association would be accepted by the securities regulator, DBA President Saiful Islam said the regulator would need to amend the securities rules tied to the clearing company.

The rules for the CCBL were framed and approved after the demutualisation of the stock exchanges. The company's board structure was designed with the ultimate goal of securing institutional independence. Hence, both stock exchanges were restricted from together exceeding a 65 per cent stake in the CCBL, with a single exchange limited to a 49 per cent holding.

Since the CCBL's functions are directly linked to bank transactions, bank representatives were envisioned on the CCBL board to facilitate the clearing and settlement function.

Meanwhile, Mr Saiful Islam said, "The DSE expects that the regulator will accept the [proposed] changes to the articles of association."

The DSE has not yet sought registration of the CCBL with the securities regulator.

Insiders, however, said the CCBL's coming into operation would face more challenges if the BSEC does not approve the changes after they are incorporated into the CCBL's articles of association.

Stocks on the Dhaka bourse plunged in the opening week of trading as concerns over the nationwide electricity and gas crisis, coupled with escalating tensions in the Middle East, triggered widespread selling and pushed the benchmark index to a three-month low.

The DSEX fell 96 points, or around 1.7%, over the week to close at 5,418, extending its losing streak to four consecutive sessions. The blue-chip DS30 index also declined 23 points to settle at 2,072.

Market breadth reflected the depth of the sell-off, with 336 issues losing value against only 27 gaining, while 21 remained unchanged. Despite the sharp fall in share prices, average daily turnover rose 5% to Tk571 crore, suggesting investors were actively offloading holdings amid mounting fears of further losses.

The market's total capitalisation fell by around Tk6,700crore during the week.

EBL Securities, in its daily market review, said the capital market showed no sign of reversing its bearish momentum as investors remained deeply concerned about the near-term economic outlook.

Persistent gas and power shortages have raised concerns over industrial production and corporate profitability. The escalating conflict in the Middle East has added another layer of uncertainty, prompting investors to adopt a defensive stance and sell shares to limit portfolio losses, EBL Securities noted.

Market insiders said Bangladesh could face additional pressure on its import-export trade and fuel supply if disruptions in the Red Sea worsen. Growing Houthi control over parts of Yemen's Red Sea coast could threaten shipping through the Bab el-Mandeb Strait, an increasingly important alternative route amid disruptions around the Strait of Hormuz.

Any prolonged disruption to shipping routes could raise transportation and fuel costs, put further pressure on gas and energy supplies, and disrupt exports to major markets in Europe and North America, they said.

Such risks could further squeeze corporate profitability and place additional pressure on the broader economy, fuelling panic among already cautious investors, they added.

The sell-off was broad-based, with all sectors posting negative returns. Travel stocks suffered the steepest correction, falling 5.4%, followed by ceramics at 4.1% and jute at 3.7%.

Textile stocks dominated trading, accounting for 25.9% of total turnover. General insurance followed with 15%, while banks accounted for 11.5%.

United Commercial Bank, Eastern Bank, Islami Bank, BRAC Bank and Beximco Pharmaceuticals were among the major stocks weighing on the benchmark index.

A handful of mutual funds and insurers bucked the broader decline. First Prime Finance Mutual Fund gained 9.95%, followed by EBL First Mutual Fund, which rose 9.30%, while Reliance Insurance advanced 6.99%.

On the other hand, Orion Infusion suffered the biggest decline, falling 9.91%. Lub-rref (Bangladesh) dropped 8.82%, while Sharp Industries lost 8.42%.

The bearish trend was also reflected on the Chittagong Stock Exchange. The CSCX index fell 79 points to 8,993, while the CASPI declined 150 points to settle at 14,715.

The capital shortfall in 21 banks rose to nearly Tk2.94 lakh crore in March 2026 from Tk2.74 lakh crore three months earlier, amid a rise in non-performing loans and provisioning requirements.

As some banks have capital surpluses that offset part of the deficits, the banking sector's overall net capital shortfall stood at Tk2.39 lakh crore across 61 banks in March, up about Tk22,000 crore from Tk2.17 lakh crore in December.

Speaking to The Business Standard, bankers and economists said persistent capital shortfalls indicate that a large part of the banking sector remains financially weak, with rising default loans being a major factor behind the deterioration.

"Banks' capital shortfall increases as defaulted loans rise. Banks have to maintain provisions against defaulted loans, which reduces their profits. In other words, continued losses increase the capital shortfall," said Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank.

Bangladesh Bank data show that the banking sector's provision shortfall stood at Tk2,05,665 crore in March, up from Tk1,98,260 crore at the end of December 2025. The provision shortfall rose to Tk2,22,357 crore in June.

Rising defaulted loans put pressure on capital

The banking sector's capital position has deteriorated over the years due to aggressive lending, weak supervision and loan approvals influenced by political considerations, according to bankers and economists.

When loans become classified as defaulted, banks have to maintain higher provisions against them. For regular or performing loans, banks generally need to maintain provisions of around 1% to 2%, while provisions against classified loans can rise to as much as 100%, depending on their classification.

The provisioning requirement is intended to protect depositors and strengthen banks' ability to absorb potential losses. However, as defaulted loans rise and banks have to set aside more funds as provisions, their profitability and capital positions come under pressure.

Total defaulted loans stood at Tk5,88,704 crore in March 2026, equivalent to 32.26% of total outstanding loans.

Finance Minister Amir Khosru Mahmud Chowdhury told parliament recently that the government was spending around Tk40,000 crore in the current fiscal year to recapitalise weak banks as part of broader efforts to restore discipline and stability to the financial sector.

Capital weakness affects depositors, healthy banks

Zahid Hussain, former lead economist at the World Bank's Dhaka office, said capital shortfalls have two major effects on the banking sector.

"First, depositors lose confidence in banks that have capital shortfalls. Capital is an important indicator that protects depositors' interests and deposits, and adequate capital helps banks withstand shocks. Therefore, negative capital creates risks. Banks with capital shortfalls also cannot conduct business properly," he said.

Second, the economist said, financially sound banks could also come under pressure because lenders and creditors from abroad may become hesitant to extend credit to banks in Bangladesh.

"If one or two banks have capital shortfalls, it may be manageable. But when 20 or 21 banks of the 61 banks have been suffering from capital shortfalls for a long time, it indicates that the banking sector is in a weak position," Zahid said.

CRAR falls deeper into negative territory

The banking sector's capital-to-risk-weighted assets ratio, or CRAR, another key indicator of financial strength, fell to negative 3.17% at the end of March from negative 2.64% in December, according to Bangladesh Bank data.

International regulatory standards require banks to maintain a minimum CRAR of 12.5%.

According to Bangladesh Bank's Financial Stability Report 2025, Pakistan's banking sector had a CRAR of nearly 21% at the end of 2025, while Sri Lanka's exceeded 19%. India's banks had an average CRAR of 17.20%.

Md Touhidul Alam Khan, managing director and CEO of NRBC Bank, said failure to maintain the required regulatory capital, particularly the CRAR, could have serious regulatory, financial and operational consequences.

He said, "If a bank fails to maintain its required regulatory capital, particularly the CRAR, it may face serious regulatory, financial and operational consequences. These may include restrictions on dividend payments and incentive bonuses, deterioration in credit ratings, declining depositor confidence, increased solvency and funding risks, higher costs of doing business, especially in trade finance, and pressure on profitability due to higher provisioning requirements."

Touhidul further said, "Inadequate capital may also limit lending capacity and reduce the bank's ability to absorb losses."

First Security Islami Bank tops shortfall list

First Security Islami Bank recorded the highest capital deficit in the country at Tk66,264.80 crore as of March 2026. Bangladesh Krishi Bank followed with a shortfall of Tk31,687.17 crore, while Social Islami Bank reported Tk30,936.67 crore.

Among other major default-ridden institutions, Union Bank faced a deficit of Tk30,594.56 crore, Exim Bank Tk30,302.23 crore, Janata Bank Tk18,354.90 crore, Global Islami Bank Tk16,297.61 crore, National Bank Tk11,984.98 crore, AB Bank Tk8,487.59 crore, and Agrani Bank Tk8,234.92 crore.