GPH Ispat, one of the leading steel manufacturing companies in Bangladesh, will raise nearly Tk968 crore through issuing rights shares, mainly to repay bank loans amid sluggish demand and persistent energy shortages affecting the steel industry.

The company's board approved the issuance of 967.77 crore rights shares at Tk10 each at a meeting held on Saturday, according to a disclosure to the stock exchanges.

Under the proposed rights offer, existing shareholders will be entitled to receive two rights shares for every ordinary share they hold.

The rights issue is expected to raise Tk967.77 crore, subject to approval from the company's shareholders at its annual general meeting (AGM) and final approval from the Bangladesh Securities and Exchange Commission (BSEC).

GPH Ispat will announce a separate record date to determine shareholders' entitlement to the rights shares after receiving the necessary regulatory approvals.

GPH Ispat's decision comes as its debt burden remains substantial. As of 31 March 2026, the company had long-term loans of Tk3,439 crore and short-term borrowings of Tk3,145 crore, taking its total borrowings to around Tk6,584 crore.

A senior company official, speaking on condition of anonymity, said the steel market has been facing weak demand while persistent energy shortages, particularly the gas crisis, have severely affected production.

"Business is going through a difficult period because demand has slowed, while the gas shortage has also hampered production. But loan instalments have to be paid on time despite the weak business environment," he said.

The company is also negotiating with banks to reschedule its loans, while its management is in discussions with Bangladesh Bank over the matter, he added.

GPH Ispat accumulated the high debt largely after making heavy investments to expand production capacity through new plants. However, delays in infrastructure development and a subsequent slowdown in demand have left the company facing pressure to service the borrowings, according to the official.

The latest rights issue is not the company's first attempt to raise fresh capital. In August 2024, GPH Ispat announced a plan to raise Tk242 crore through a rights offer, proposing one rights share for every three existing shares at Tk15, including a Tk5 premium. The proceeds were intended to finance a new expansion plant expected to generate Tk450 crore in annual revenue.

The BSEC, however, cancelled that rights-share application in May 2025, saying the documents submitted by the company were not satisfactory.

A month later, in June 2025, the securities regulator also rejected GPH Ispat's proposal to raise Tk500 crore through preference shares to repay loans.

The latest proposal therefore marks a significant shift in the company's capital-raising strategy, with debt repayment now taking priority over production expansion.

Meanwhile, GPH Ispat has recommended a 2% cash dividend for the financial year ended 30 June 2026, exclusively for general shareholders. Sponsors and directors holding 14.62 crore shares will not receive the dividend. The proposed payout to eligible general shareholders amounts to Tk6.75 crore.

The company's AGM is scheduled for 25 October, where shareholders will vote on both the dividend recommendation and the rights issue. The record date for participation in the AGM and entitlement to the proposed dividend is 1 October.

GPH Ispat returned to profitability in FY26, though earnings remained thin. The company posted a net profit of Tk3.38 crore, translating into earnings per share (EPS) of Tk0.07, compared with a loss per share of Tk0.51 in FY25.

Its net asset value stood at Tk51.81 per share, while net operating cash flow per share was Tk15.73.

Despite the return to profit, investors remained cautious. GPH Ispat shares fell 3.09% to Tk15.70 on the Dhaka Stock Exchange today (13 September). The company's market capitalisation stood at around Tk759 crore against paid-up capital of Tk483.88 crore.

US consumer inflation was unchanged at 3.4 percent in August, government data showed Friday, with persistent high prices raising expectations that the Federal Reserve will hike interest rates in the world’s largest economy next week.

Consumer price index (CPI) inflation remains significantly elevated from earlier in the year and well above the Fed’s long-term two-percent target.

US households have been battered by years of high prices since the pandemic -- when consumer inflation hit 9.1 percent -- and Americans’ ability to afford basics like food and fuel will be a key issue in November’s midterm elections.

Several Fed policymakers have indicated they would be prepared to raise interest rates if August inflation data did not show a slowdown in price increases. The central bank’s rate-setting committee meets next week.

Any move to raise rates will be sure to anger US President Donald Trump, who has launched an unprecedented campaign against the Fed’s independence, demanding policymakers lower interest rates to spur economic activity.

The US president launched a criminal probe against previous Fed chair Jerome Powell, is attempting to fire another Fed governor and last week even threatened to cut trade ties with certain countries if the Fed raised rates.

Trump is under pressure over the high cost of living, with Democrats seeking to wrest control of both houses of Congress in November and block the Republican’s agenda in the final two years of his term.

Fuel price increases accounted for one-third of the monthly rise in consumer prices, Friday’s data showed.

The price of gasoline in the US is up 44 percent since the start of the Iran war in February, according to AAA motor club data.

Record diesel prices -- which hit an unprecedented $6 per gallon in the United States on Friday -- have also driven up transportation, farming and construction costs.

The index for inflation excluding volatile fuel and food prices -- so-called “core” inflation -- rose 2.4 percent in August year-on-year.

“The renewed march higher in oil, gasoline and diesel prices add to concerns that higher energy prices could spill over to other goods and services and inflation expectations,” said Kathy Bostjancic, chief economist at Nationwide, in a note.

Market expectations of a rate hike surged in the wake of the inflation reading, with the probability of a 25-basis-point hike at 87 percent, according to CME’s FedWatch tool.

INFLATING HITTING HARD

High prices have been hitting the US economy hard, with wholesale inflation picking up more than expected in August, according to government data on Thursday.

The Fed last raised rates three years ago, capping a hiking cycle it began in the pandemic to combat surging prices.

Inflation has declined steadily from its 2022 peak, but never hit the Fed’s two-percent target. In February it fell to 2.4 percent but subsequently surged to three-year highs on the back of Trump’s war on Iran.

The United States and Israel launched strikes on Iran and killed its leadership at the start of the war, plunging the Middle East into chaos as Tehran targeted US regional allies and choked off a key energy trade route.

The Fed has gradually lowered rates since 2024 but has held them steady between 3.50 percent and 3.75 percent this year as inflation climbed following the Middle East war and as the effects of Trump’s tariff war filtered through the economy.

Democratic Senator Elizabeth Warren slammed Trump over the latest inflation figures.

“Today’s data confirms that Americans continued to pay more for housing, airline fare, and childcare in the month of August, while their wages have failed to keep up with inflation for five consecutive months,” she said.

Many US households have been struggling in recent years, and on Friday a gauge of consumer sentiment by the University of Michigan was near an all-time low.

“With a resurgence in fuel prices and trade tensions, consumers anticipate greater pressures on their pocketbooks to come,” said survey director Joanne Hsu.

US consumer prices have accelerated in August, while a key measure of underlying inflation posted its largest increase in four months, reinforcing expectations that the Federal Reserve will raise interest rates next week.

The Labor Department's Consumer Price Index report on Friday followed strong readings in several components of the Producer Price Index released on Thursday that feed into the Personal Consumption Expenditures price indexes, the inflation measures the US central bank tracks for its 2 percent target. The two reports led economists to think that PCE inflation excluding the volatile food and energy categories picked up in August.

Financial markets initially priced in a 91 percent chance of a quarter-point rate hike at the Fed's meeting on Tuesday and Wednesday, before settling back to 87 percent, CME's FedWatch tool showed. That was up from 72 percent on Thursday. The Fed's benchmark overnight interest rate is currently in a 3.50-3.75 percent range.

Most economists said the firmer inflation readings, combined with signs of the labour market regaining its footing in August, would compel Fed officials to raise borrowing costs not only next Wednesday, but possibly again in October or December.

They argued that with the Iran war continuing, the energy shock would spread through the economy. They also expected an AI buildout to drive inflation. Crude oil prices climbed back above $100 a barrel this week, while the US national average diesel price surpassed $6 a gallon for the first time.

"Energy inflation does not stay at the gas station. It travels by truck, aeroplane and cargo ship into nearly every store in America," said Sung Won Sohn, a finance and economics professor at Loyola Marymount University. "The Fed is now more likely than not to raise its policy rate ... it cannot afford to let an energy shock become an everything shock".

The CPI increased 0.4 percent last month after edging up 0.1 percent in July, the Labor Department's Bureau of Labor Statistics said. In the 12 months through August, consumer inflation advanced 3.4 percent after rising by the same margin in July. The rise in the CPI was in line with economists' expectations.

A 3.9 percent jump in petrol prices after two straight monthly declines accounted for more than a third of the increase in the CPI over the month. Other motor fuels, which include diesel, surged 9.6 percent. They surged 44 percent year-on-year in August.

There was, however, some respite for consumers at the supermarket. Food prices edged up 0.1 percent for a second straight month. Grocery prices were unchanged amid muted increases in the costs of meat and fish. Fruit and vegetable prices fell 0.4 percent over the month, weighed down by a 6.2 percent drop in the cost of lettuce because of a Cyclospora outbreak.

But egg prices increased 2.9 percent, while non-alcoholic beverages cost more, as did dairy and related products. Food prices advanced 2.7 percent year-on-year in August and the annual increase in consumer inflation is outpacing wage growth. Inflation-adjusted average hourly earnings fell 0.3 percent over the year in August.

"Inflation-adjusted wage growth contracted for a fifth consecutive month in August," said Gregory Daco, chief economist at EY-Parthenon. "This is the longest income squeeze since 2012, excluding the post-pandemic period when public assistance kept income growing despite historical job losses."

Frustration over rising cost of living

Frustration over the higher cost of living has led to a sharp erosion in President Donald Trump's approval ratings and could cost his Republican Party control of the US Congress in the November midterm elections, according to analysts.

The growing disenchantment was also evident in the University of Michigan's Surveys of Consumers, which showed its Consumer Sentiment Index tumbled to 47.8 in early September from 51.7 in August. The deterioration in sentiment was among both Democrats and Republicans. Consumers also anticipated higher inflation over the next 12 months and five years.

Wall Street stocks rose as oil prices retreated, though crude remained on course for a weekly gain of more than 8 percent. The dollar was steady against a basket of currencies. US Treasury yields initially rose, with the benchmark US 10-year note yield rising to 4.9915 percent before easing back to 4.92 percent.

Excluding food and energy, the CPI rose 0.3 percent last month, the largest increase since April. That was above economists' expectations for a second straight month of a 0.2 percent gain. Core CPI increased 2.4 percent year-on-year in August after rising 2.5 percent in July. Core CPI inflation was lifted by a 5.9 percent jump in mobile phone costs, likely related to service changes at AT&T.

Airline fares increased 2.7 percent, reflecting higher jet fuel costs. The cost of education and communication services rose solidly, while rents rose 0.2 percent and prices for hotel and motel rooms rebounded 2.4 percent. But healthcare costs eased and motor vehicle insurance fell 0.8 percent.

Core goods inflation was benign, suggesting the pass-through from import tariffs was fading, though an escalation in trade tensions between the United States and Canada posed an upside risk. There were rises in the prices of new motor vehicles as well as used cars and trucks. Prices for prescription medication were unchanged.

With the CPI and PPI data in hand, most economists expected core PCE inflation to increase 0.3 percent after gaining 0.2 percent in July. Estimates for the year-on-year increase in core PCE inflation converged around 3.4 percent. Core PCE inflation advanced 3.3 percent in the 12 months through July. The August PCE inflation report will include changes to the methodology.

Fed Chairman Kevin Warsh said last month the central bank will "have work to do" if policymakers don't get the confidence they need that inflation is heading down to 2 percent. But Trump is pressuring the Fed to cut rates, posting on social media last week, "Lower the rate or I'll stop trading with countries with which we have a deficit".

Economists have blamed what they called political intimidation for the surge in yields on long-term US government bonds.

"The markets are doing the Fed's job for it by pricing the yield curve significantly higher, and the Federal Open Market Committee is now behind the curve," said Brian Bethune, an economics professor at Boston College. "At this point, Warsh and the FOMC have painted themselves into a corner".

BRICS leaders have called for a revamp of the global governance system, condemned unilateral tariffs and "acts of war", and backed greater representation for developing countries at the United Nations Security Council (UNSC).

The positions were outlined in the New Delhi Declaration adopted today (12 September) at the BRICS Summit in the Indian capital, where Indian Prime Minister Narendra Modi announced the consensus document, reports NDTV.

The declaration called for a "structural update" of the UNSC, with greater representation for developing countries from Africa, Asia, Latin America and the Caribbean.

China and Russia, the two permanent members of the Security Council represented at the summit, reiterated their support for Brazil and India seeking a greater role at the UN, including on the Security Council.

"Today's discussion makes it evident that the changing world cannot be steered by outdated institutions; reforms are essential in representation, responsiveness and rule-making," Modi said in his concluding remarks.

He also stressed that the Global South should have an equal role in shaping future technologies and the rules governing them.

The declaration urged BRICS members to increase the use of local currencies in trade among themselves, reducing reliance on the US dollar.

Tariff concerns

The bloc also criticised the growing use of tariffs and other trade restrictions, reaffirming its support for reform of the World Trade Organization (WTO).

BRICS said the global trading system should remain open, transparent, equitable and rules-based, while expressing "serious concerns" over unilateral tariff and non-tariff measures that it said were inconsistent with WTO rules.

It warned that such measures could hamper global trade, disrupt supply chains and create uncertainty for international economic activity, while worsening existing economic disparities.

The group said it would work to make the WTO more responsive to trade disruptions and the needs of emerging markets and developing economies.

Condemnation of terrorism

The declaration strongly condemned terrorism in all its forms and reaffirmed the bloc's commitment to tackling terrorist financing, safe havens and the cross-border movement of terrorists.

"We express strong condemnation of any acts of terrorism as criminal and unjustifiable, regardless of their motivation, whenever, wherever and by whomsoever committed," the declaration said.

BRICS also stressed that terrorism should not be associated with any religion, nationality, civilisation or ethnic group, and said those involved in terrorist activities and their support should be held accountable under national and international law.

The declaration further denounced "unilateral acts of war" and stressed the importance of protecting seafarers and commercial navigation amid ongoing military aggression in the Middle East.

The summit comes as BRICS marks two decades since its creation and follows the group's expansion beyond its original membership.

The intensifying global competition for critical minerals could be a transformative moment for Africa.

The continent is already a major producer of energy transition metals such as copper, cobalt and manganese but is nowhere near its full potential.

Africa’s share of global mineral revenues sits at just 10 percent, despite accounting for 30 percent of the world’s reserves, according to the Brookings Institution.

There may be yet more riches hidden underground.

It’s difficult to know, because the continent was the target of just 10 percent of global mineral exploration in 2024, according to the US think-tank Center for Strategic and International Studies (CSIS).

Moving forward, however, that number is likely to increase as Africa becomes the front line in the global battle for resources, with the West vying with China for control of metals that are core components of both green technologies and AI data centers.

Can Africa seize its metallic moment?

To do so, the continent must break with a long history of resource exploitation by external powers.

European colonisation of Africa in the late 19th and early 20th centuries laid the foundations for unequal trading relationships centred on the extraction of raw materials for overseas markets — a pattern that persists to this day.

From the rubber plantations in the Belgian Congo through goldfields in South Africa to the copper mines of what is now Zambia, Africans have provided the blood, sweat and tears only to see the rewards reaped by foreign owners.

Now, many African governments are realising that the global hunger for critical metals offers a unique chance to change the terms of resource trade.

One obvious route African nations can take to capture more value from mining is to build more processing capacity.

Indonesia has shown others the way.

The country banned exports of nickel ore in 2020, forcing miners to invest in smelters.

The strategy has been so successful that Indonesia is now the world’s dominant producer, exporting a wide spectrum of nickel products, including high-purity refined metal and sulphate for battery manufacturers.

African countries have taken note.

Zimbabwe has imposed export controls on lithium, Guinea on bauxite and the Democratic Republic of Congo on both cobalt and copper, all with the ambition of leveraging raw materials to expand domestic processing capacity.

However, the number of barriers to establishing a successful processing business is “vast”, according to a joint analysis by consultancy CRU and the World Bank in a June report.

Power supply, infrastructure, logistics, technical capacity and policy must all be right to make what is a low-margin business profitable even when prices drop. Indeed, these factors can be more important than the mineral reserves themselves.

Just look at Angola.

It is building an aluminium smelter at the port of Barra do Dande despite having neither bauxite nor the capacity to process it into alumina, the intermediate product fed into the smelting process.

What the project does have is a deep-sea port suitable for handling raw materials and a strategic location in a free-trade zone, allowing it to benefit from shared infrastructure, favourable business rates and reliable power supplies.

Angola also sits at the end of one of the largest infrastructure projects in Sub-Saharan Africa — one that has huge implications for the region’s push to limit external power on the continent.

The Lobito Corridor will combine new and existing railway lines to link the central African Copperbelt with the Angolan port of Lobito.

The ambitious project is heavily backed by both the US and Europe.

It has massive strategic significance.

The Lobito Corridor offers a Western shipping alternative to the Chinese-built TAZARA railway line running from Zambia to the Tanzanian port of Dar es Salaam.

TAZARA is the transit route for much of the region’s copper and cobalt as they start their long journey to a Chinese port.

Chinese companies own and operate some of the largest copper and cobalt mines in the region, beginning a supply chain that ends in Chinese-made electric vehicles or humble air-conditioner units.

The Lobito Corridor is a direct challenge to that dominance.

The project cuts freight time from Congo’s mines to the sea from over a month to just one week, helping reduce risk for potential private-sector investment. China has responded with a commitment to spend $1.4 billion to revamp TAZARA, which it financed in the 1970s.

Ultimately, the competing rail corridors, one heading west and one east, represent a potential win-win for both Congo and Zambia.

The Lobito Corridor, however, promises much more than a fast exit route for Africa’s metals.

It is intended to be an economic booster in its own right, creating agricultural, metals and technology hubs along its 1,800-kilometre (1,120-mile) route.

Western partners in the project are investing not just in hard infrastructure but also in what the European Union describes as “soft connectivity”, meaning trade facilitation, technical and vocational training, and a focus on creating local employment.

The results are already tangible in Angola, where railway infrastructure is simply being upgraded rather than built from scratch, as will be the case for the planned extension into Zambia in 2030.

Upgrades create more immediate economic opportunity in the local economy.

Congo’s copper and cobalt are now accompanied on their journey to Lobito by Angolan agricultural goods from the country’s farming heartland in Huambo province.

Angola exported its first avocados to Europe last November thanks to an EU-funded trade logistics platform and a €50-million investment programme in sustainable agricultural chains.

This holistic approach to the Lobito Corridor offers one way out of Africa’s historic resource trap.

Even building processing plants doesn’t necessarily spread any wealth through the local economy if they operate as export-oriented fiscal enclaves.

Congo’s copper production is now largely in the form of high-purity refined metal, but the country still exports almost all of it to China for conversion into manufactured goods.

That needs to change if Africa is to grab a larger share of its mineral revenues.

HISTORIC MINERS

Perhaps the single biggest challenge facing African countries seeking to convert mineral wealth into long-term economic growth is how to deal with their traditional workforce.

It’s estimated that around 10 million people are directly involved in artisanal and small-scale mining (ASM) in Africa, with many more dependent on it for subsistence.

Africans have been mining for thousands of years, and collective small-scale operations have been the norm for most of that time, particularly in rural areas with low employment prospects.

It’s dangerous work, but that doesn’t prevent the participation of both women and children.

Fatalities are common and the environmental impact can be devastating.

The word “artisanal” implies a degree of free agency, but ASM is often more akin to bonded labour.

The ore dug out of the ground is sold to middlemen at a fraction of its true value.

In conflict zones such as Congo’s eastern provinces and some Sahel countries, ASM can be outright forced labour at mines controlled by insurgent groups.

Africa’s historical miners operate in a dark zone thanks to colonial-era laws declaring all such “native” operations illegal.

The result is the criminalisation of millions of people, lost revenue for states and an ethical dilemma for Western companies, many of which are understandably wary of buying metal that may include ASM ore.

There are multiple efforts to “formalise” ASM by integrating the workforce into the official mining sector.

The most ambitious is in Congo, which has long been targeted by campaigners for its “blood” cobalt.

Kinshasa has tried and failed before to find ways of merging its “illegal” miners into the official sector.

But new cobalt export quota controls and enhanced powers for the mining regulator, the Entreprise Générale du Cobalt, promise better results from a new scheme launched with Eurasian Resources Group.

The irony is that if the West wants Congo’s cobalt and doesn’t want to rely on Chinese operators, it needs to source from the ASM sector.

But the metal has to come with guarantees that it’s untarnished by human rights abuses.

It’s in everyone’s interests to bring Africa’s original miners in from the cold.

Indeed, for Africa itself, it may be the single most important lever it can pull in terms of changing a blood-soaked historical narrative of exploitation.

Indonesian state-run company -- PT Pertamina -- is all set to bag the operation and management (O&M) contract of Bangladesh's maiden single-point mooring (SPM) for carrying fuel from vessels in outer anchorage to onshore storage tanks.

The state-run Bangladesh Petroleum Corporation (BPC) recently completed the evaluation for selecting the O&M contractor to initiate the operation of the country's much-needed oil carrying infrastructure two years after its installation, a senior official of the Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) told The Financial Express on Thursday.

A total of 11 companies had purchased tender documents to compete in the bidding, and three of them submitted bids in February this year to carry out the job.

After inking the deal, the Indonesian company will carry out the operation and management job for five years.

The Indonesian company has been selected as the O&M contractor following re-tendering.

Pertamina was the lone bidder in the initial tender, which was cancelled due to higher than expected price quotes.

During the BPC's previous tender, the Indonesian company had quoted $117 million, which was around 33 per cent above the BPC's budget of $88 million, resulting in the cancellation, said sources.

The SPM has already been kept idle for two years, and the BPC is counting extra money while using lighter vessels to carry fuel from mother vessels to tanks onshore as a consequence.

Chinese firm China Petroleum Pipeline Engineering Co Ltd (CPPEC) completed the construction of the SPM with a double-pipeline project and handed over the infrastructure to the BPC in August 2024.

The guarantee period to resolve faults in operations of the SPM, however, expired in February this year, much ahead of its commencement of commercial operation, it has been alleged.

The delay in starting operations of the SPM system is allegedly benefiting private operators, who are earning hefty profits by carrying fuel from outer anchorage to onshore storage through lighter vessels, at the expense of public money, industry insiders said.

Allegations are rife that a vested interest group, working in collusion with private sector beneficiaries, was playing a key role in delaying the SPM and its associated fuel pipelines and infrastructure.

The SPM system is used for piping petroleum from vessels far offshore and onshore storage tanks, thus slashing both time and cost of oil imports.

CPPEC built the SPM system after being selected as a contractor "unsolicitedly" under the currently repealed Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010.

The project cost escalated by 60 per cent to Tk 80 billion from the initial target of Tk 50 billion.

The installation of the SPM with the double pipeline project was implemented with Chinese concessional loans of around $554 million.

Of the total, China provided around $467.84 million as preferential buyers' credit and the remaining $82.5 million was available as soft loan.

The Exim Bank of China provided the money, to be repaid within 20 years at an interest rate of 2.0 per cent per annum with five years' grace period.

As part of the project, a 220-kilometre pipeline has been installed, with most of it laid in the waters of the Bay of Bengal.

Six storage tanks have also been constructed.

The tanks have a combined capacity of 240,000 tonnes of petroleum products, with 150,000 tonnes designated for crude oil and 90,000 tonnes for gas oil.

Once it is fully executed, the BPC will be able to unload petroleum products from a 100,000-deadweight tonnage tanker within 48 hours, which now takes 11 days.

No lighter vessels would be required to carry fuel from mother vessel, which is now moored at the outer quay, after implementation of the project.

The BPC is currently paying around $5.50 per tonne to lighterage or small vessels, owned mainly by the Bangladesh Shipping Corporation (BSC) to ferry petroleum to its onshore tanks from larger mother vessels.

Once operational, the SPM will save the cost of the BPC in unloading fuel significantly.

The government will be able to save around Tk 8.0 billion alone by reducing transport costs of petro-products from outer anchorage to onshore fuel tankers, market insiders said.

The government built 39 high-tech and software technology parks at a huge cost, but the facilities have failed to deliver the expected investment, jobs and technology growth, according to stakeholders.

They blamed a shortage of skilled workers, weak industry-academia links, poor maintenance, high operating costs and inadequate institutional support for the failure.

Speaking at a virtual discussion titled “Hi-Tech Parks: What is the Mission? What is the Reality?” yesterday, they said the government does not necessarily need to abandon the parks now. Instead, it should focus on making them useful, improving governance and providing the support businesses need.

From 2009 to 2023, the Awami League government built the parks, expecting the infrastructure to drive investment and create a technology boom.

“But results so far clearly show that the assumption was not the right one,” said M Rokonuzzaman, professor of Electrical & Computer Engineering at North South University.

He cited Taiwan, South Korea, Malaysia and Singapore as examples of countries where technology ecosystems grew through stronger links between industry, skills, research and government support.

Faiz Ahmad Taiyeb, former special assistant to the chief adviser, blamed the failure partly on establishing the parks in economically weak areas instead of integrating them with existing commercial hubs.

He said many of the parks were built without considering whether a viable economy already existed around them.

Faiz also questioned the credibility and effectiveness of the training ecosystem, saying the training facilities alongside the parks did not guarantee a steady supply of industry-ready workers.

Rafel Kabir, managing director of DNS Software Ltd, said the parks should have focused on producing core technologies, such as motherboards and chips fabrication.

At the programme organised by the Power and Participation Research Centre (PPRC), entrepreneurs from different parks also spoke about the obstacles they face.

Mohammad Mohidul Islam, managing director of software firm Ongsho at Jashore High-Tech Park, said around 40 companies are trying to stay afloat independently there without effective ecosystem support.

Jashore High-Tech Park was established in December 2017.

Mohidul said the authority treats them as tenants rather than entrepreneurs.

Md Ashafuddoza Shishir, co-founder and chief operating officer of Netro Systems Ltd and Telzen, said ventures from Rajshahi Hi-Tech Park have managed to develop global footprints.

But the direct benefits of operating in the park are limited, he said. “The tangible benefit for companies in Rajshahi park is confined to tax exemptions, as direct authority support for startups is largely absent.”

Farhana A Rahman, chairperson and CEO of UY Systems Ltd, said similar problems are visible at Kaliakoir Hi-Tech Park, where companies were offered plots without the wider services needed to build a functioning business ecosystem.

“We remain trapped in a loop of grandiose promises about high-tech parks, yet despite the building of so many facilities across the country, real progress on the ground is absent,” she said.

“The Kaliakor Hi-tech Park offered land plots but no supportive services. So, many later surrendered their allocations,” Farhana added.

Hossain Zillur Rahman, executive chairman of PPRC and moderator of the discussion, said Bangladesh does not need to abandon the high-tech park model altogether.

He said that the country should rebuild it on firmer foundations, with reliable utilities, accountable governance and support systems that treat companies as partners rather than tenants left to fend for themselves.

“Long-term success requires shifting focus from building physical real estate to cultivating soft infrastructure, skilled human capital, and industry-driven training,” he added.

Foreign investors accelerated their sell-off in the capital market in August, cutting holdings in several fundamental and large-cap stocks despite recent regulatory measures aimed at easing foreign investment.

According to Dhaka Stock Exchange data, City Bank saw the sharpest decline, with foreign ownership falling 1.72 percentage points to 8.26%, involving a Tk90 crore sell-off. BRAC Bank followed with a 0.57-point drop to 32.39% and a Tk80 crore exit.

Prime Bank's foreign holding fell 0.35 points to 5.36% (Tk12.30 crore), while Uttara Bank declined 0.17 points to 0.45% (Tk4 crore).

Foreign investors also reduced exposure to major blue-chip and multinational stocks. Grameenphone saw holdings fall 0.08 points to 0.17% (Tk26 crore), while Square Pharma declined 0.04 points to 14.33% (Tk7.5 crore).

Other sell-offs were recorded in Olympic Industries (Tk5 crore), BAT Bangladesh (Tk2.5 crore), Walton (Tk1.2 crore), LafargeHolcim Bangladesh (Tk1.20 crore), Summit Alliance Port (Tk0.71 crore), Shasha Denims (Tk0.55 crore), Envoy Textile (Tk0.47 crore), IDLC Finance (Tk0.40 crore) and Reckitt Benckiser (Tk0.15 crore).

Foreign buying remained muted, with small purchases in Acme Laboratories (Tk0.16 crore), LankaBangla Finance (Tk0.08 crore), Orion Pharma (Tk0.05 crore) and Ring Shine Textile.

The continued outflow comes despite recent policy measures to attract overseas capital. Bangladesh Bank removed the requirement for an auditor's certificate for every non-resident trade, allowing authorised dealer banks to process tax withholding directly into Non-Resident Investor Taka Accounts (NITA).

The Bangladesh Securities and Exchange Commission also relaxed dividend remittance deadlines for foreign shareholders, linking compliance to the issuance of Double Taxation Avoidance certificates. Meanwhile, MSCI will resume regular index reviews for Bangladesh from November 2026, ending its three-year "special treatment" following the 2022 floor price regime.

Market experts said foreign sentiment has nevertheless been weakened by recent regulatory decisions. They cited concerns over policy consistency following the removal of former Governor Ahsan H Mansur, as well as Bangladesh Bank's requirement for banks to have at least Tk2,000 crore in paid-up capital to declare dividends and its 4% cap on interest-rate spreads.

Analysts said such administrative interventions risk pushing the financial system towards a command-style economy, weakening market-based decision-making and encouraging global investors to shift funds elsewhere.

US-Bangla Airlines plans to place another major order for leased aircraft worth $4-5 billion within the next 60 days, Managing Director Abdullah Al Mamin said today (12 September).

"We will order more leased aircraft worth $4-5 billion within the next 60 days," he said at a policy conclave titled "World-class aviation for Bangladesh's economic progress", organised by The Daily Bonik Barta at the United Convention Centre in Kurmitola, Dhaka.

However, Al Mamin did not disclose how many aircraft would be leased under the planned deal.

Asked about the aircraft manufacturer, Al Mamin told The Business Standard that the airline could not disclose at this stage whether the aircraft would be supplied by Boeing or Airbus.

Earlier, US-Bangla announced plans to acquire 21 Boeing aircraft through a $1.5 billion leasing deal as part of a major fleet expansion programme.

US-Bangla unveils $1.5b leasing deal to add 21 Boeing aircraft
The announcement was made on 29 July at the airline's "Beyond with Boeing" event in Dhaka.

The deal includes 15 Boeing 737-8 aircraft and six Boeing 737-800 aircraft, with all 21 aircraft scheduled for delivery by the end of 2027.

US-Bangla currently operates 25 aircraft, making it the largest fleet among Bangladesh's local airlines.

Civil Aviation and Tourism Minister Rashiduzzaman Millat attended the event as the chief guest, while State Minister for Foreign Affairs Humayun Kabir was the special guest.

Former Civil Aviation Authority of Bangladesh Chairman Air Vice Marshal (retd) Mahmud Hussain also attended the event.

Bonik Barta Editor Dewan Hainf Mahmud delivered the welcome speech.

The conclave was supported by AirAsia, United Group and US-Bangla Airlines.

The government may revert to monthly value-added tax (VAT) returns and payments from the current quarterly system launched this July amid concerns over monitoring difficulties, operational complications and increased collection risks arising from the new arrangement.

Following adverse feedback from field-level offices, the National Board of Revenue (NBR) has requested the finance ministry to take steps to reverse the provision, according to officials familiar with the matter.

“We have completed preparations on our side. The decision now awaits Prime Minister Tarique Rahman’s approval,” said an NBR official, seeking anonymity.

The development comes as VAT collection, which accounts for nearly 38 percent of the NBR’s total revenue, fell by about 21 percent year-on-year in the first two months of FY2026-27, according to provisional data.

The revenue board collected Tk 9,302 crore in VAT in July, down from Tk 11,547 crore a year earlier. Collection fell further in August to Tk 8,362 crore, compared with Tk 11,081 crore in the same month last year.

As a result, VAT collection during July-August stood at Tk 17,663 crore, down from Tk 22,628 crore in the corresponding period of the previous fiscal year.

The NBR, however, does not yet have sufficient data to determine whether the new system has affected overall VAT collection, officials said. Businesses have until the end of September to submit their returns for the first quarter under the new arrangement.

WHAT THE NEW SYSTEM OFFERS

Officials explained that the previous system allowed taxpayers to retain the VAT money for up to 30 days and pay it by the 15th of the following month.

Under the new quarterly system, businesses can now retain the VAT collected from consumers for up to three months before making the payment.

“Now that the period has been extended to three months, large businesses can keep the VAT collected from consumers and earn interest on it or use it in other ways,” an official of the Dhaka Commissionerate said, seeking anonymity.

The official said the three-month payment window gives businesses an opportunity to earn interest on VAT they have already collected from consumers but have yet to remit to the government.

“Suppose you have Tk 200 crore in one month and another Tk 200 crore in the next -- Tk 400 crore in total. If you put that money into Treasury bonds, DPS or FDRs, you can earn interest from it,” he said.

“But this is actually government money. You have already collected it from consumers against each invoice,” he added.

Another official, also seeking anonymity, said the government could not afford to let public funds remain with businesses for an extended period, particularly as it has to pay interest on its own borrowings.

FIELD OFFICES SEEK RETURN TO MONTHLY SYSTEM

According to the Dhaka Commissionerate official, the NBR does not yet have all the systems and monitoring tools in place that are needed to properly manage the quarterly VAT mechanism.

“We are facing problems both in monitoring and in terms of risk,” he said. “We used to track revenue collection monthly by circle, division and unit. That monitoring tool is no longer available to us.”

“One weakness of our department is that we have not yet established a system to deposit VAT into the treasury immediately against each invoice. This is a systemic weakness on our part,” he added.

“We demand that the return should also be submitted monthly. Both the return and payment should be monthly,” the official said.

Another official of the Rangpur Commissionerate also called for a return to the monthly system.

When asked why the NBR had not addressed the monitoring and collection issues before launching the new system, NBR Acting Chairman Ahsan Habib declined to comment.

BUSINESSES OPPOSE RETURN TO MONTHLY PAYMENTS

Businesses, meanwhile, have warned that restoring monthly VAT payments would run counter to the government's efforts to reduce compliance burdens and improve the ease of doing business.

Mohammed Amirul Haque, managing director of Premier Cement Mills, also criticised the NBR’s potential move to reverse the quarterly VAT payment system without adequate consultation with businesses.

“Their (NBR) main issue is consultation with businesses. If there is a problem, (they should) sit down with us. Ask us, ‘What is the modus operandi? How can we do it?’” he said.

He questioned the rationale for reverting to monthly payments after introducing the quarterly system in the name of ease of doing business.

“They introduced the quarterly system in the name of ease of doing business. Now, if they suddenly say everything has to be done every month, what is the justification? They did not consult us in the first place,” he said.

Amirul said compliant businesses should not be penalised because some non-compliant companies might misuse the system.

“If a non-compliant company takes advantage of the quarterly system to evade taxes, you cannot punish the compliant companies for that,” he said.

He also questioned the NBR's argument that quarterly payments create monitoring difficulties.

“If receiving government revenue every three months creates a monitoring problem, then why have you been holding advance income tax for years? Does that not create monitoring difficulties?” he said.

Some NBR officials have suggested a compromise: businesses could continue filing VAT returns every three months but would have to pay the VAT they collect into the government treasury every month.

Responding to a question from reporters on Tuesday, Finance Minister Amir Khosru Mahmud Chowdhury said the government would discuss the complications arising from the quarterly VAT return system and take a decision soon.

Currently, Bangladesh has more than 8 lakh businesses registered for VAT and holding Business Identification Numbers, according to the NBR.

Bangladesh received $6.85 billion in remittances from July 1 to September 9 of fiscal year 2026-27, up 15.9 percent year-on-year, according to Bangladesh Bank data released Thursday.

The country received $5.918 billion during the same period of FY26.

Bangladeshi expatriates living in different countries sent home $1.031 billion in remittances in the first nine days of September 2026, up 1.3 percent from $1.018 billion during the corresponding period a year earlier, the central bank data showed.

On September 9 alone, the country received $127 million in remittances.

Bangladesh received $35.34 billion in remittances through formal banking channels in FY26.

A unit of the 1,600-megawatt Adani power plant in India's Jharkhand has shut down following "technical fault" that further tightened Bangladesh's power-supply situation amid ongoing gas, coal and liquid-fuel shortages.

Sources say the shutdown has cut down the plant's generation by more than half.

The plant was generating more than 1,400 megawatts on Thursday night before one of its units went offline around midnight.

By Friday noon, its generation had fallen to 736mw, according to sources at Bangladesh Power Development Board (BPDB) and Power Grid Company of Bangladesh (PGCB).

At 3:00am on Thursday, grid supply came down to 12,907 megawatts against 15,776 MWs in demand, leaving a 2,869mw shortfall.

Officials familiar with the plant said a technical glitch had developed in the boiler of one of its units. "The boiler may take around 48 hours to cool before repair can begin, meaning it could take several days for generation to return to normal."

The BPDB signed a power-purchase agreement with the plant authority in 2017. The plant has supplied more than 1,500 megawatts at times, based on Bangladesh's demand.

Meanwhile, the country's power generation has come under increasing pressure for worsening energy shortage and technical glitches at some power plants.

According to BPDB sources, the gas shortage has persisted for more than two months, reducing generation from gas-fired power plants by up to 1,500 MWs. Several coal-fired plants are also operating below capacity due to fuel shortages and technical problems.

Latest generation data show that BPDB generates 13,000-14,000 MWs against peak-hour demand exceeding 16,000 MWs, leaving a significant supply deficit. Current production relies primarily on gas-fired plants (5,000 MWs), coal-fired units (4,500 MWs), and liquid-fuel plants (2,000-3,000 MWs).

Generation at the Payra power plant in Patuakhali has also been affected, with one unit remaining offline for several days due to coal shortages and a technical fault. Another power plant in Patuakhali is also facing a coal shortage.

Sources said authorities were trying to offset the shortfall by increasing generation from oil-fired power plants to make do with.

However, the additional generation has not been sufficient to fully ease the pressure on the power-supply system.

Load shedding has also increased as electricity demand rises with higher temperatures even at the fag-end of the outgoing summer.

Despite Friday being a weekly holiday, load shedding exceeded 2,500 MWs in the morning. It later fell to 414 MWs at about 2:00pm as generation increased.

The shutdown of one of Adani's units, along with fuel shortages and technical glitches at other plants, is likely to put additional pressure on the country's power- supply system over the coming days.

The government has stepped up its oversight of public financial management, issuing a strict directive to all government ministries, divisions, and institutions to revise and update their budget-implementation plans (BIPs), according to the finance ministry.

Under the initiative, the finance ministry has asked various state agencies, including ministries, divisions, and other government entities, to urgently revise their BIPs to align public spending with the government's election manifesto, reform agenda, and priority programmes for the fiscal year 2026-27.

"The ministry also sent the instruction to the cabinet secretary, comptroller and auditor general, chief election commissioner, and secretaries of more than 20 ministries and divisions, including home, planning, finance, economic relations, railways, disaster management, foreign affairs, education, and youth and sports," an official involved in the matter said.

The Finance Division has set September 15 as the deadline for completing the exercise and updating the plans in the iBAS++ BIP module, according to a directive issued on September 7.

The directive comes as the government moves to strengthen monitoring of budget execution and ensure that spending plans are consistent with its newly set policy priorities.

The Finance Division said the FY27 budget was prepared considering the government's election manifesto, reform programmes, and priority areas. It also noted that ministries and divisions had already prepared their annual procurement plans (APPs) in line with the government's priority programmes.

They have, therefore, been instructed to review their existing BIPs and make necessary changes so that the budget implementation plans are consistent with the APPs and government priorities.

The instruction was issued under Section 15 of the Government Financial and Budget Management Act 2009, which provides for regular monitoring of progress in budget implementation.

The Finance Division said the methodology and necessary forms for preparing BIPs were incorporated into Budget Circular-1 issued on April 20 this year. The BIP module has also been developed in the iBAS++ system for ministries, divisions, and other government institutions.

The latest instruction effectively seeks to bring budget execution, procurement, and government priorities under a common implementation framework, allowing the Finance Division to monitor whether spending is progressing according to approved plans.

The ministries and divisions have been asked to complete the revised BIPs and inform the Finance Division by September 15.

The government formulated a Tk 9.38 trillion national budget for FY27, with Tk 3.0 trillion earmarked for the annual development programme (ADP).

When contacted, a senior official of the finance ministry said the move signalled the government's bid to enforce greater financial discipline and closer oversight of budget execution, particularly by linking procurement plans with the policy priorities reflected in the FY27 budget.

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

The claims, totalling Tk23,03,56,971, involve five life insurance companies, according to the regulator.

IDRA is arranging the 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 initiative is aimed at expediting the settlement of valid long-pending claims and restoring customer confidence in the insurance sector, IDRA said.

In the first phase, IDRA facilitated the payment of Tk14,51,03,146.58 in insurance claims to 2,549 policyholders of seven life insurance companies on 3 September.

The momentum behind the Comprehensive Economic Partnership Agreement (CEPA) should be turned into tangible joint-venture manufacturing and foreign investment, said South Korean Ambassador to Bangladesh Kim Ji-joon.

He stressed the need to ensure a level playing field for formal investors and introduce a more investment-friendly tariff structure to attract greater Korean investment.

Kim made the remarks as the chief guest at a seminar titled “Navigating the National Budget 2026-2027: Opportunities for Business and Investors” at Sheraton Dhaka in Banani on September 9.

The Korea-Bangladesh Chamber of Commerce & Industry (KBCCI) organised the seminar, according to a press release.

The ambassador also called for integrated industrial clusters, predictable incentives for joint ventures, and simpler visa and work-permit procedures for foreign experts.

He urged stronger digital links among customs, ports, banks and tax authorities, along with effective investor aftercare and reliable energy supplies.

Kim reaffirmed Korea’s commitment to being a long-term partner of Bangladesh in investment, technology transfer and manufacturing know-how.

Welcoming the participants, Shahab Uddin Khan, president of KBCCI, said changes in tax, value-added tax (VAT), customs duties and import policies directly affect business costs, investment decisions and future planning.

He reaffirmed KBCCI’s commitment to strengthening Bangladesh-Korea economic ties through greater trade and investment, joint ventures, technology transfer and industrial cooperation.

Snehashish Barua, a chartered accountant and a director of SMAC Advisory Services Ltd, delivered a keynote titled “Finance Act 2026 Unveiled: Analysis of Key Tax, VAT, Customs & Regulatory Changes”.

He provided a practical analysis of major fiscal and regulatory changes and their implications for businesses and investors.

Md Moazzem Hossain, member of the National Board of Revenue (NBR), and Nahian Rahman Rochi, executive member of Invest Bangladesh, attended the event as special guests.

The seminar provided a platform for dialogue between policymakers and the private sector and explored new opportunities for businesses and investors. It also highlighted KBCCI’s role in strengthening the longstanding economic ties between Bangladesh and South Korea.

Do-Kee Park (Harry), chief executive officer of KBCCI, was also present, among others.

Some 110,364 registered farmers across Bangladesh will receive Tk2,500 each under the pilot phase of the government's Farmer Card programme, Agriculture Minister Mohammad Amin Ur Rashid said today (12 September).

The government plans to eventually bring more than 20 million farmers under the programme within the stipulated timeframe, he said.

The minister disclosed the plan during a press briefing in Fulgazi upazila of Feni, where he inspected preparations for Prime Minister Tarique Rahman's visit and the inauguration of the Farmer Card, Family Card and monthly honorarium allowances for imams, muezzins, khadems, priests and sebayets.

The inauguration programme is scheduled for 17 September, with preparations underway, the minister said.

"On the opening day of the pilot programme, 110,364 registered farmers across the country will receive Tk2,500 each as an incentive. A total of 7,643 farmers in Feni district will receive the card," he said.

The programme will be gradually expanded to every upazila, union and block across the country, he added.

The minister said farmers would be selected without discrimination and that the programme would cover all categories of genuine farmers.

"All genuine farmers - marginal, small, landless, medium and large - will be brought under the programme," he said.

The initiative aims to ensure farmers can obtain fertiliser and seeds at fair prices while receiving fair returns for their agricultural produce.

Government assistance will also be delivered to genuine farmers in a more organised and transparent manner through the Farmer Card, Amin Ur Rashid said.

Responding to questions about fertiliser shortages, the minister said there was no shortage in the country and warned against attempts to create an artificial crisis.

"Anyone attempting to create an artificial shortage, harass farmers or sell fertiliser at inflated prices will face strict action. The government has a zero-tolerance policy towards irregularities and corruption involving fertiliser," he said.

He said authorities had received reports that fertiliser was being stored outside authorised dealers' premises.

"If fertiliser that is supposed to be with a dealer is found in another warehouse or with an individual, the matter is being investigated," he said.

The Ministry of Agriculture has formed several teams to monitor the situation, he added. The teams are working from 8am to 10pm and will take prompt action when they receive information about fertiliser-related irregularities.

The government is also prioritising agricultural modernisation and increased production in char areas, the minister said.

Plans are being formulated to assess how different chars across the country can be modernised and how agricultural output in those areas can be increased, he added.

Money is getting cheaper in Bangladesh, but the falling cost of credit reflects a sluggish economy rather than a recovery.

Interest rates have steadily declined as banks accumulate vast excess liquidity amid weak credit demand. Simultaneously, Bangladesh Bank has shifted towards an easier monetary stance by cutting its benchmark policy rate, placing further downward pressure on money-market yields.

Healthy commercial banks have trimmed both lending and deposit rates by 1-2 percentage points in recent months. This comes as private-sector credit growth dropped to 4.47% in June – the lowest level in 33 years. Average deposit rates at most institutions now hover between 7% and 8%, while lending rates range from 10% to 11%. With minimal credit demand from businesses, banks have piled into government securities, driving yields on all Treasury bills and bonds down into single digits.

By June 2026, total excess liquidity in the banking sector surged by 39.40% year-on-year to exceed Tk4 lakh crore. The foreign-exchange market shows a similar imbalance: robust dollar inflows and weak import demand have created upward pressure on the taka. To prevent sharp currency appreciation and protect exporters and remitters, the central bank resumed dollar purchases from commercial banks on 1 September, buying $50 million at Tk122.75 – well above market remittance rates of Tk122.30-122.60. Gross foreign-exchange reserves subsequently rose by nearly $5 billion over the year, reaching $36.33 billion by 3 September.

This rate decline occurs against a fragile macroeconomic backdrop marked by sluggish growth, persistent inflation, and high unemployment, raising fears of stagflation. Although inflation eased to 8.26% in August, it remains comfortably above the government's 7.5% target for FY27. Because prices were already elevated last year, this ongoing inflation compounds a high baseline, keeping consumer prices uncomfortably high.

In response, Bangladesh Bank is injecting liquidity via stimulus measures and planning further monetary easing to reignite investment. However, economists and bankers warn that injecting liquidity without addressing structural bottlenecks will fail to revive real demand and could aggravate inflation.

Why is Bangladesh Bank cutting rates?
In July, Bangladesh Bank lowered its policy rate by 50 basis points to 9.5% to spur private investment. This marked a clear departure from the tight monetary stance maintained since 2022, during which the policy rate was gradually raised from 5% to 10% and kept there for nearly two years from October 2024.

"Our earlier assumption was that raising the policy rate would make money expensive, reduce liquidity, and curb inflation," a senior Bangladesh Bank executive said on condition of anonymity. "However, that mechanism failed in our context. Despite keeping the rate high for two years, inflation remained stubborn."

The official added that elevated interest rates instead drove up corporate financing and production costs, which firms passed directly to consumers. "We are now testing a supply-side strategy: lower the policy rate to reduce production and import costs. If supply expands and unit costs fall, prices should moderate."

Easier money risks fueling inflation
Md Ezazul Islam, Director General of the Bangladesh Institute of Bank Management, argues that lower interest rates are a symptom of economic paralysis. "Economic activity remains constrained by gas and electricity shortages, the lingering aftershocks of recent political instability, and global uncertainty," Islam noted.

While deposit growth has remained steady, banks cannot generate matching credit due to absent loan demand. "Banks naturally redirect excess funds into government Treasury bills and bonds. With heavy government borrowing and intense competition among banks for these safe assets, yields drop. That is basic market dynamics," Islam said, adding that the trend will persist until private credit demand rebounds.

Islam cautioned that monetary easing without productive capacity risks worsening inflation. "Job creation and investment are primarily fiscal responsibilities. If the government wants to stimulate the economy, it must deploy fiscal tools through the budget – such as tax relief, infrastructure spending, and securing energy supplies – rather than over-relying on central bank liquidity."

Structural hurdles mute credit demand
Despite lower borrowing costs, credit demand shows no sign of recovery. City Bank, one of the country's prominent private lenders, recorded just 7%-8% credit growth over the first nine months of the year – half its historical average – despite double-digit deposit growth.

A senior executive at the bank noted that expected credit demand failed to materialise even after post-election political uncertainty subsided. "Even when we offer competitive rates to large corporate clients, many refuse to borrow due to persistent gas shortages," the executive said. Consequently, City Bank redirected surplus liquidity into government debt and deployed over Tk 2,000 crore into the central bank's stimulus fund.

The executive also cast doubt on the official 4.47% private-sector credit growth figure for June. "Real growth is likely negative; much of that figure reflects forced loans and accrued interest on existing facilities."

He noted that the central bank's Tk60,000 crore stimulus package equals roughly 3% of total bank loans. Fully implementing it would only push credit growth to 7%-8% – far below the 15%-16% required to support the government's 6.5% GDP growth target for FY27. "Furthermore, banks will not take the risk of lending to distressed or insolvent businesses simply because money is cheap," he added.

Certainty over cheap money
Tareq Refat Ullah Khan, managing director of BRAC Bank, emphasised that falling rates stem directly from surplus liquidity rather than intentional economic stimulus. "When credit growth halts, money builds up. Lowering rates alone cannot create demand if the wider business environment remains unsupportive."

BRAC Bank has lowered corporate lending rates to 11%-12% (with select prime clients receiving 9%-10%), while SME rates have dropped to 14%-15% and retail rates to 11%-12%. Deposit rates across sound banks have settled around 8%-9%. Distressed banks continue offering 11%-12% on deposits solely to maintain liquidity, rather than to finance new lending.

Abul Kashem Md Shirin, former managing director of Dutch-Bangla Bank, observed that major industrial borrowers are holding back expansion plans due to broader uncertainty. "When liquidity is abundant and credit demand falls, rates drop naturally. Bangladesh Bank spent years trying to force interest rates down through directives, but market forces are finally driving the adjustment automatically – which is precisely how a market economy ought to function."

The government aims to attract an additional $5 billion in US investment to Bangladesh over the next five years, Commerce Minister Khandakar Abdul Muktadir said.

He said the government and the American Chamber of Commerce in Bangladesh (AmCham) would work together to achieve the target, with the government ready to cooperate with US companies to boost investment, create jobs, facilitate technology transfer and expand economic opportunities.

The minister made the remarks as the chief guest at a programme marking AmCham Bangladesh's 30th anniversary at the Radisson Blu Water Garden in Dhaka today (12 September).

US Ambassador to Bangladesh Brent T Christensen, AmCham President Syed Mohammad Kamal, Vice President Ala Uddin Azad, former presidents and current and former executive committee members, government officials, business leaders and media representatives attended the event.

Bilateral trade between Bangladesh and the US currently exceeds $13 billion, Muktadir said, adding that the relationship extends well beyond trade.

AmCham member companies have invested more than $5 billion in Bangladesh and contribute more than 20% to the country's national revenue, according to the minister.

"This investment reflects the confidence of US businesses in Bangladesh's economy," he said.

Muktadir said AmCham leaders recently met with the prime minister and expressed interest in bringing an additional $5 billion in US investment to Bangladesh over the next five years.

"The government will provide the necessary support to implement this initiative," he said.

He assured US businesses that the government would respond to genuine concerns raised by investors.

Bangladesh has 51.83 lakh tonnes of fertiliser in government stocks against a projected demand of 35.20 lakh tonnes through February, leaving a surplus of around 16.63 lakh tonnes, according to the Ministry of Agriculture. Yet farmers in several districts are struggling to buy fertiliser, with some waiting in long queues or paying above government-fixed prices.

The Business Standard found that the disruption lies in the distribution chain after the government began implementing a new dealer policy during peak Aman demand. Existing dealer vacancies, uncertainty over the transition and rumours of dealership cancellations have reduced lifting from warehouses, disrupting last-mile supply to farmers.

The disruption has since led to farmer protests and allegations of overpricing and hoarding, despite adequate fertiliser stocks at the national level.

The agriculture ministry gazetted the Comprehensive Policy on Fertiliser Dealer Appointment and Distribution 2026 on 27 August, seeking to reorganise a system the government says had suffered from discrimination and weaknesses in distribution.

Under the new arrangement, each union can have up to three dealer units. One additional dealer is to be appointed while existing eligible dealers remain, and one person cannot hold more than one dealership. Fresh appointments are also being made against vacant dealer points.

The government says the changes are intended to make fertiliser distribution more efficient, transparent and accessible to farmers.

An unbecoming time

Implementation of the new dealer appointment and distribution system began when Aman cultivation was already under way and fertiliser demand was high, with the Rabi season also approaching.

Officials said work on revising the dealer system began in June, but repeated changes pushed the appointment process into the peak demand period.

Mohammad Hamidur Rahman, former director general of the Department of Agricultural Extension (DAE), said the timing was inappropriate.

"Aman cultivation, the country's main rice crop, starts from the beginning of August. Farmers need a huge amount of fertiliser at this time. But the new dealer appointment process was started at this very time, which was not right. As a result, existing dealers have reduced fertiliser collection from warehouses. Some are not collecting fertiliser at all. This has created the crisis," he said.

The government should have started the dealer appointment process during the off-peak season after assessing the situation, he added.

Rumours over dealerships unsettle distribution

Sector insiders said the policy transition created uncertainty among dealers, while rumours spread that existing dealerships would be cancelled.

The policy itself retained eligible existing dealers, and the agriculture ministry had also issued instructions allowing existing chemical fertiliser retailers to continue operating.

But insiders said the uncertainty was enough to make some dealers reduce or stop lifting fertiliser from government warehouses.

Agriculture Secretary Md Salim Khan acknowledged that internal disputes over the new integrated policy had affected lifting by dealers of the Bangladesh Chemical Industries Corporation (BCIC) and Bangladesh Agricultural Development Corporation (BADC).

He also blamed rumours for creating panic among farmers.

"Effectively, there is no fertiliser shortage. A section of people are artificially creating various incidents. Many rumours have been spread at the district level about fertiliser. They have agitated farmers by spreading the claim that there is no fertiliser," he said.

An already weak dealer network

The policy transition came on top of another problem: thousands of dealer points were already vacant.

State Minister for Local Government Mir Shahe Alam told parliament on 9 September that around 3,759 dealer points had become vacant after dealers appointed under the previous government left their positions. The government plans around 4,918 new appointments as it seeks to fill gaps and expand the network.

The vacancies were not created by the new policy, but agriculturists say they left the distribution network more vulnerable when the government began changing the system during peak demand.

Dealers had sought a delay

The Bangladesh Fertilizer Association (BFA) also raised objections to the timing and implementation of the new policy.

After seeking clarification over provisions it described as unclear, unlawful and contradictory, the association asked the agriculture ministry in September to suspend the dealer appointment process for two months.

The request followed a High Court order asking the ministry to dispose of the BFA's objections within 60 days. The association argued that appointments should remain suspended during that period so the Aman season could be completed without further disruption.

BFA Chairman Md Mosharraf Hossain had separately instructed dealers in August to lift allocated fertiliser on time and sell it at government-fixed prices.

Reduced lifting hits local supply

Agriculture ministry officials said the disruption became more acute after dealers lifted only around half of their allocated fertiliser from government warehouses in July and August.

Officials said agriculture officers in 15 districts failed to report the reduced lifting to the ministry. After two consecutive months of low collection, shortages began appearing in local markets.

The ministry later concluded that some dealers had deliberately refrained from lifting allocations to create an artificial shortage, officials said.

Show-cause notices were subsequently issued to agriculture officials in the affected districts, while some faced withdrawal and stand-release orders.

Agriculture Secretary Md Salim Khan said some farmers were also trying to stock more fertiliser ahead of the Rabi season, adding further pressure on local supply.

Farmers feel the impact

The effect has become visible in districts including Rajshahi, where farmers have repeatedly visited dealer warehouses only to return without fertiliser.

Some supplies are also being sold outside the authorised dealer network at substantially higher prices. TSP, officially priced at Tk1,350 per sack, has reportedly been selling for around Tk2,000 in the open market.

More than 100 farmers from Baneshwar and surrounding areas blocked the Rajshahi-Natore highway for about an hour earlier this week, protesting what they described as an artificial shortage and demanding increased supplies.

Enough fertiliser nationally

Government figures, however, continue to show sufficient supply at the national level.

The government told parliament this week that projected demand for urea, TSP, DAP and MOP from October through February stands at 35.87 lakh tonnes, against 51.71 lakh tonnes of prepared supply – around 15.84 lakh tonnes above projected demand.

State Minister for Commerce Md Shariful Islam said the government was maintaining domestic production, imports and buffer stocks to keep supplies uninterrupted.

The figures reinforce the central problem identified by officials and sector insiders: fertiliser is available nationally, but disruptions in the dealer network are preventing it from consistently reaching farmers.

Govt steps up monitoring

The government has intensified enforcement as it tries to stabilise distribution.

Agriculture ministry officials said 230 mobile courts were conducted between 28 August and 10 September, with fines totalling Tk38,68,824. Authorities also recovered 1,700 sacks of fertiliser and sentenced four people to imprisonment.

Monitoring arrangements have been strengthened across all 64 districts, while the government is moving ahead with new dealer appointments.

The challenge now is to complete that transition without further disrupting a distribution system already under pressure during one of the busiest periods of the agricultural calendar.

Bangladesh's electrical and electronics exports are gaining momentum, with shipments of electrical products rising nearly 24% in FY2025-26, even as manufacturers seek to keep pace with increasingly demanding sustainability, traceability, and product-compliance requirements in the European Union.

According to the latest Export Promotion Bureau (EPB) data, exports of electrical products increased 23.82% from $166.52 million a year earlier, reaching a record $206.19 million.

The category was the largest earner among engineering products, surpassing bicycles, which earned $151.04 million, up 29.71%.

Engineering exports overall rose 21.77% to $652.15 million, underscoring the growing contribution of electrical and electronics products to Bangladesh's export diversification.

The growth comes as the European Union introduces new sustainability requirements through its Ecodesign for Sustainable Products Regulation (ESPR) and Digital Product Passport (DPP) framework.

The ESPR entered into force in July 2024, introducing requirements for DPPs and product durability, as well as a ban on destroying certain unsold goods.

The ESPR does not immediately require every electronic product to carry a DPP. Instead, product-specific requirements are being introduced through delegated acts. Where applicable, manufacturers will need to provide information on materials, components, environmental characteristics, durability and repairability.

For Bangladesh, this could prove challenging as manufacturers remain dependent on imported components and raw materials, making supply-chain traceability more difficult.

Industry races to prepare

Mohammad Ali, senior vice-president of the Bangladesh Electrical Merchandise Manufacturers Association (Bemma), said the association was preparing its members through workshops covering product origin, warranties, after-sales service, repairability, and documentation.

"We are already working on a product basis, product origin, product warranty, and after-sales service – whether a product is repairable or not," he said.

But the sector still lacks adequate testing infrastructure, Ali said.

Bemma has approached the commerce and industries ministries several times for support in establishing facilities capable of testing electrical products against European and other Western-market standards.

"For the electrical sector, we think there should be an individual common facility centre," he said.

Such a facility could particularly benefit smaller manufacturers that are beginning to explore export markets.

Imported inputs pose traceability challenge

Supply-chain traceability remains another hurdle, particularly because many manufacturers source components and raw materials from China and Vietnam.

"Most of the raw materials we are importing are from China or Vietnam. In that case, it is actually totally difficult to identify the carbon footprint," Ali said.

Bemma members that have traditionally focused on the domestic market face a steeper learning curve as they move towards exports, he said.

Walton says it can adapt

For leading exporter Walton, adapting to changing international standards is not new.

Syed Al Imran, executive director of Walton Hi-Tech Industries, said the company had repeatedly upgraded its systems as overseas requirements changed, citing the transition from manual registration to the digital Registered Exporter (REX) system and changes in European energy-efficiency ratings.

"When A+++ changed to A, B, C, D and E, Walton instantly upgraded," Al Imran said.

He attributed the company's ability to respond quickly partly to its vertical integration, with Walton manufacturing many of its own parts and components.

Another advantage is Walton's NUSDAT-UTS laboratory, which provides testing and certification services, including CB certificates, he said.

Walton previously had to send refrigerators to India for testing, but NUSDAT-UTS reports are now accepted for the relevant Indian star-rating process, eliminating the need to send products abroad, Al Imran said.

When new requirements emerge, Walton can work with NUSDAT-UTS and partner laboratories to identify necessary upgrades and implement them, he added.

Vision prepares for European entry

PRAN-RFL Group's Vision Electronics is also preparing to enter the European market.

The company currently exports across South Asia, Southeast Asia, Oceania and Africa, while Europe remains a strategic target.

For refrigerators and air conditioners, Vision is redesigning its product architecture to meet European quality, safety and eco-design requirements. It has already secured G-Mark certification for its air-conditioner line for the Middle East.

The company is integrating ERP systems to track raw-material origins, chemical compliance and sub-assembly batches. It is also digitising bills of materials and working with consultants to measure Scope 1, 2 and 3 emissions at its Habiganj and Danga industrial parks.

Its R&D team is moving towards modular PCB designs and quick-release compressor and fan-motor mounts to facilitate repairs and component replacement.

Vision is also replacing some non-recyclable composite plastics with single-grade polymers such as ABS and HIPS, while planning for the long-term availability of key spare parts.

Policy support needed

Bemma says stronger government support is needed to help the broader industry compete internationally.

Ali called for incentives, back-to-back letters of credit and duty relief on imported raw materials, similar to support mechanisms available to the garment sector.

"If we get this kind of government backup in the electrical sector, I think electrical and electronics can be the most promising sector over the next 10 years, even more promising than RMG," he said.

The senior vice-president also urged the commerce, industries and finance ministries to hold sector-specific discussions with electrical manufacturers.

A more immediate regulatory deadline concerns batteries. Under the EU Batteries Regulation, an electronic battery passport will be mandatory from 18 February 2027 for electric-vehicle batteries, industrial batteries above 2kWh and light means of transport batteries placed on the EU market.

For Bangladesh's rapidly expanding electrical and electronics industry, the challenge is moving beyond producing competitive goods to being able to prove how they are made, tested, sourced and repaired.

Bangladesh currently exports a range of consumer electronics and appliances, including televisions, refrigerators, freezers and air conditioners, as well as electrical equipment such as power transformers, electric cables and insulated wires, switches, sockets, circuit breakers and LED lighting solutions.

The export basket also includes rechargeable batteries, transistors and semiconductor devices, along with eco-friendly bicycles and other light mechanical components.

With electrical exports growing at a double-digit rate, manufacturers that build these capabilities early could be better positioned to turn the sector's export growth into a sustained foothold in major global markets.