Swisscontact, an international development organisation, has announced plans to offer advisory and technical support to promising ready-made garment (RMG) companies looking to raise long-term financing through Bangladesh's capital market.

Speaking at a workshop today (9 September), Farzana Amin, team leader of Swisscontact's Progress project, said the organisation aims to develop several RMG companies as role models over the coming year, guiding them through the process of entering the capital market.

She was speaking at a workshop titled "Expanding RMG's Financing Horizons: Opportunities in the Capital Market", jointly organised by the Dhaka Stock Exchange (DSE) and Swisscontact at the DSE Training Academy.

"RMG companies need to consider capital market-based financing alongside bank loans," Farzana said, adding that Swisscontact plans to provide end-to-end support to companies interested in accessing the market.

DSE Managing Director Nuzhat Anwar said the capital market should be developed as a major source of long-term financing for private-sector businesses rather than being viewed only as an investment platform.

She stressed the need to expand financing options beyond equities and initial public offerings (IPOs), particularly through the bond market, and called for reviewing existing policy and regulatory constraints, including the use of IPO proceeds and opportunities for refinancing.

BKMEA Deputy Secretary Md Harunur Rashid said industrial companies remain heavily dependent on bank financing, which often limits their ability to raise sufficient funds for business expansion.

He said bringing viable companies to the capital market could help them expand operations, create employment and contribute to economic growth. However, maintaining sustainable business growth after listing would be essential to preserving investor confidence.

BMBA President and LankaBangla Investments CEO Iftekhar Alam discussed the process of raising long-term capital under the new listing regulations.

He explained the eligibility requirements for main-board IPOs and SME-board qualified investor offers (QIOs), company valuation, listing procedures, use of raised funds, subscription, share allocation and lock-in requirements.

DSE General Manager of the Market Development Division Saiyid Mahmud Zubayer presented an overview of the country's capital market, DSE's market infrastructure and technological capabilities, and the available equity and debt financing options.

He highlighted IPOs, QIOs, the SME platform, the bond market and direct listing as potential avenues for companies seeking funds for expansion. He also discussed how capital market participation can strengthen corporate governance and enhance a company's credibility.

DSE Chief Technology Officer Md Asifur Rahman said the exchange is providing advisory services and one-to-one counselling to entrepreneurs interested in entering the capital market.

Swisscontact Inspire project Team Leader Bidowra Tahmin Khan said the organisation would work with the DSE, BSEC and other stakeholders to provide advisory and technical assistance to promising RMG and textile companies.

She said Swisscontact has been working with the RMG and textile sectors for around two decades on compliance, skills development and green transition, and plans to use that experience to support companies seeking capital market financing. Swisscontact Bangladesh Deputy Country Director Syeda Israt Fatima and senior officials from the DSE, along with representatives of leading BKMEA member companies, attended the workshop.

Bangladesh and Hong Kong yesterday signed an Investment Promotion and Protection Agreement (IPPA) with an aim to increase and safeguard bilateral investment.

Khandakar Abdul Muktadir, commerce minister, and Algernon Yau, secretary for commerce and economic development of Hong Kong, signed the deal during the opening session of the 11th Belt and Road Summit 2026 held in Hong Kong.

Hong Kong is currently the seventh-largest source of investment in Bangladesh

The agreement is expected to further strengthen the protection of mutual investments and capital of investors from Bangladesh and Hong Kong, according to a statement from the commerce ministry.

At the same time, it is expected to create a more institutionalised investment environment between the two sides and open up new opportunities for economic cooperation.

Hong Kong is currently the seventh-largest source of investment in Bangladesh.

The new agreement is expected to help increase investment from Hong Kong in Bangladesh.

In particular, there is potential for increased investment flows into promising sectors, including the ready-made garment and textile industries.

It may be noted that Bangladesh has attracted approximately $750 million in foreign direct investment from Hong Kong over the past five years. Of this amount, $122 million was received in 2025 alone.

Good and promising RMG companies should tap the capital market for long-term financing to diversify their funding sources and reduce heavy reliance on bank loans, speakers at a workshop said on Wednesday.

They said greater access to equity and debt financing could help Bangladesh’s ready-made garment (RMG) companies expand business, create jobs and contribute to economic growth.

The speakers made the remarks at a workshop titled “Expanding RMG’s Financing Horizons: Opportunities in the Capital Market,” jointly organised by the Dhaka Stock Exchange (DSE) and Swisscontact at the DSE Training Academy.

Senior officials of leading member companies of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), top officials of the DSE and merchant bankers attended the event.Subscribe To News

Speaking at the opening of the workshop, DSE Managing Director Nuzhat Anwar said the capital market was not merely a platform for investment but an important source of long-term financing for economic growth and private-sector expansion.

“The capital market should not be limited to IPOs or the equity market; rather, it should expand opportunities for various forms of financing, including bonds,” she said.

Although discussions on developing an effective bond market had continued for years, recent initiatives by the current commission and relevant stakeholders created fresh opportunities to advance the sector, she said.

She called for reviewing policy and regulatory constraints to make capital-market financing more effective, including the use of IPO proceeds and refinancing opportunities.

“The main goal of such discussions is to identify the existing limitations of the capital market based on the needs and practical experiences of entrepreneurs and take effective initiatives to resolve them,” added Ms Anwar.

BKMEA Deputy Secretary Md Harunur Rashid said industrial enterprises remained largely dependent on banks, limiting the ability of many businesses to fully utilise their growth potential.Bangladesh economic report

“The capital market can be an effective alternative source of long-term financing,” he said.

Listing good and promising companies would support business expansion, create employment and accelerate economic growth, Mr Rashid said.

He, however, stressed the need to ensure sustainable business growth after listing to maintain investor confidence.

Swisscontact Progress Project Team Leader Farzana Amin said the organisation had been supporting the RMG sector for nearly two decades and that capital-market financing should be considered alongside bank loans.

Swisscontact plans to provide end-to-end support to RMG companies interested in accessing the capital market, she said.

The organisation aims to develop several RMG companies as role models within the next year to encourage other businesses to seek financing from the capital market, she added.

Bangladesh Merchant Bankers Association (BMBA) President and LankaBangla Investments CEO Iftekhar Alam outlined opportunities for raising long-term capital through IPOs and the structural challenges facing the capital market.

He discussed the listing process, including eligibility for main-board IPOs and qualified investor offers (QIOs) on the SME platform, company valuation, fund utilisation, subscription, share allotment and lock-in requirements.

Bidowra Tahmin Khan, team leader of Swisscontact’s INSPIRE Project, said Swisscontact would provide advisory and technical assistance in coordination with the DSE, Bangladesh Securities and Exchange Commission (BSEC) and other stakeholders to help promising RMG and textile companies access the capital market.

Swisscontact has been working with Bangladesh's RMG and textile sector for around 20 years, focusing on compliance, skills development and the green transition, she said.

The country has no fertiliser shortage and will have a surplus of 1.584 million tonnes against demand during the upcoming Rabi and Boro seasons, State Minister for Local Government Mir Shahe Alam told parliament yesterday (9 September).

Demand for urea, TSP, DAP and MOP from October to February 2027 is projected at 3.587 million tonnes, against a prepared supply of 5.171 million tonnes. "So, there is no reason for farmers to panic over fertiliser," he said.

Opposition lawmakers, however, disputed the assessment, saying adequate stocks on paper are not reaching farmers when needed. They blamed dealer irregularities, artificial shortages, black-market sales and poor management.
Govt cites supply, production

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

In the current fiscal year, 2,08,799 tonnes of urea have been produced and 1,17,899 tonnes imported, while 5,30,925 tonnes have been distributed and 409,000 tonnes remain in stock, he said.

Production at several factories has been suspended due to gas and raw-material shortages. However, the Ghorashal-Palash and Shahjalal Fertiliser plants are operating normally, while Chattogram Urea Fertiliser is expected to resume production soon.
'Fertiliser exists, proper management does not': Jamaat MP

Jamaat MP Shafiqul Islam said the main problem was poor management, not stocks. Citing media reports, he said farmers are struggling to buy fertiliser at fair prices. In Joypurhat, dealers are allegedly charging Tk300-Tk400 more per bag, with some farmers paying Tk500-Tk800 above the official price.

He also alleged that Tk10-Tk12 lakh is being traded for dealer appointments, with a syndicate bypassing lists prepared by local administrations or elected representatives.

Citing illegal stockpiles seized in Kurigram and an incident in which farmers broke into a warehouse, Shafiqul said field-level supplies were far from normal. He warned that failure to ensure supplies before Boro could revive a situation similar to the BNP's previous government.

Jamaat MP Md Mahbubul Alam said farmers in his constituency are buying fertiliser on the black market despite adequate government stocks.

He criticised the removal of MPs from fertiliser and seed monitoring committees. MPs had served on district- and upazila-level committees since 2009, but a 27 August circular removed all 349 MPs, he said.

Mahbubul proposed replacing the dealer system with an open market, creating union-based digital demand maps, distributing fertiliser through farmers' digital IDs using OTP or QR codes, and digitally tracking supplies.
Govt blames dealer gaps

Mir Shahe Alam said around 3,759 dealers appointed under the previous government were absconding, leaving dealer points vacant. The government plans to appoint around 4,918 new dealers.

Between 29 August and 6 September, 204 mobile courts took action in 22 fertiliser-related incidents, imposing Tk35 lakh in fines. He said MPs need not be on monitoring committees, as dealers should distribute fertiliser under existing rules.

State Minister for Fisheries and Livestock Sultan Salahuddin Tuku said there is no shortage and dismissed allegations of corruption over new dealership applications.

Capital market stakeholders have urged the government to allow listed companies to buy back their own shares and streamline merger and acquisition (M&A) processes through amendments to the Companies Act, 1994.

In a letter to the Ministry of Commerce, the DSE Brokers Association of Bangladesh (DBA), the platform of Dhaka Stock Exchange brokerage houses, called for specific provisions on share buybacks and M&A in the proposed third amendment to the law.

The DBA also urged the government to empower the Bangladesh Securities and Exchange Commission (BSEC) to formulate and enforce rules on the issues to ensure effective regulation and investor protection.

Currently, listed companies have no mechanism to repurchase their shares when prices fall sharply during periods of market volatility. The absence of a comprehensive M&A framework also forces companies to seek court approval, resulting in lengthy delays.

"Every country has laws governing share buybacks, but Bangladesh has none. As a result, many cash-rich companies cannot repurchase their shares even when prices fall. Consequently, there is no market support during a downturn," DBA President Saiful Islam told TBS.

He added that if this law is enacted, companies will be able to buy their own shares, providing crucial support during periods of market volatility.

Under current regulations, sponsors and directors can purchase shares when prices fall, but such purchases increase their personal stakes rather than directly benefiting the company, he said.

"Allowing companies to execute share buybacks would deliver direct value to the firm," Saiful said, adding that the DBA had urged the government to include buyback provisions in the Companies Act.

He also called for a dedicated M&A framework to reduce legal complexities and speed up transactions.

"M&As currently require court approvals, which is a time-consuming process. Having dedicated laws or regulations would enable faster mergers and acquisitions," he said.

DBA seeks greater BSEC oversight

In its letter to Commerce Secretary Md Ataur Rahman Khan, the DBA proposed allowing listed companies to conduct share buybacks, with BSEC empowered to formulate rules and oversee their implementation.

It also called for BSEC to be given authority to regulate mergers and acquisitions involving listed companies to reduce legal complexities and protect investors.

The association said empowering the capital market regulator to formulate and implement rules in these areas would ensure more effective oversight and better protection of investors and other stakeholders.

BSEC also seeks buyback provision

Separately, BSEC has called for allowing listed companies to buy back shares in the proposed amendment to the Companies Act.

The regulator also proposed modernising corporate reporting standards, requiring regulatory approval for mergers involving listed companies and extending the validity of financial statements used in prospectuses.

BSEC Executive Director Abul Kalam made the proposals at a views-exchange meeting on the draft Companies Act amendment at the FBCCI Board Room in the capital on Monday.

He said targeted revisions were needed to align the law with modern business practices, noting that several BSEC recommendations submitted on 18 December 2025 had been omitted from the current draft.

Referring to Section 58 of the existing law, which restricts companies from purchasing their own shares, Kalam urged policymakers to allow listed entities to conduct buybacks under specific conditions to improve capital management and protect shareholder interests.

On mergers, acquisitions, demergers and restructuring under Sections 228 and 229, he proposed requiring BSEC involvement when a listed company merges with an unlisted entity to protect general investors, citing similar regulatory arrangements in India.

The Dhaka Stock Exchange (DSE) edged lower today (9 September) as cautious investors remained on the sidelines amid uncertainty over the market's direction, while concerns over the country's ongoing gas and electricity crisis continued to weigh on sentiment.

The DSEX, the broad index of the DSE, fell 1 point to settle at 5,538. The blue-chip DS30 index shed 5 points to close at 2,103, while the Shariah-based DSES index gained 1 point to settle at 1,111.

Turnover fell nearly 12% to Tk520 crore from Tk590 crore in the previous session, reflecting subdued investor participation. Of the 387 securities traded, 165 advanced, 150 declined and 72 remained unchanged.

Market participants said uncertainty over the economy and corporate operations has kept investors cautious, particularly as ongoing gas and electricity shortages continue to disrupt industrial production. Concerns over the impact of the utility crisis on corporate earnings have discouraged investors from taking fresh positions.

Many investors are instead waiting for clearer signals on the market's direction and upcoming corporate earnings before increasing their exposure, market participants said.

Recent intervention by the stock exchange in large buy and sell orders has also unsettled some major individual investors, they said. Uncertainty over such interventions has prompted some investors to adopt a wait-and-see approach.

Meanwhile, recent inspections and investigations by the stock exchange at several brokerage houses have further weighed on market sentiment, according to market participants.

The DSE Brokers Association of Bangladesh (DBA) has urged the stock exchange to avoid unnecessary harassment of brokerage houses during such exercises and maintain a balanced approach so that inspections and investigations do not disrupt their normal operations.

EBL Securities, in its daily market commentary, said the capital market remained range-bound, with the indices showing largely flat momentum throughout the session. Large-cap stocks remained under pressure amid subdued participation as investors stayed cautious about the market outlook.

The brokerage also said investors were closely watching for fresh positive catalysts that could support a sustained recovery, while uncertainty over the upcoming earnings season continued to weigh on sentiment.

Despite more stocks advancing than declining, weakness in several large-cap stocks kept the benchmark index in negative territory.

On the sectoral front, Textile stocks accounted for the largest share of turnover at 31.2%, followed by General Insurance at 13% and Banking at 11.9%.

Textile stocks posted the highest sectoral gain, rising 2%, followed by Mutual Funds at 1.6% and Jute at 1.1%. On the other hand, Ceramic stocks declined 1.4%, Life Insurance fell 0.7% and Financial Institutions lost 0.3%.

ICB AMCL Sonali Bank Limited 1st Mutual Fund was the top gainer, rising 10%. Sena Insurance gained 9.98%, while Saiham Textile Mills advanced 9.76%.

SK Trims & Industries was among the biggest losers, falling 5.11%. Metro Spinning declined 3.81%, while Golden Son lost 3.73%.

Envoy Textiles led the turnover chart, followed by Sharp Industries and Saiham Textile Mills.

The Chittagong Stock Exchange (CSE) also ended lower on Wednesday. The CASPI index fell 59.1 points to settle at 14,869, while the CSCX declined 42.9 points to close at 9,088. Turnover at the CSE stood at Tk87.27 crore.

Market observers said the DSE may continue to see cautious trading in the near term unless concerns over utility shortages, corporate earnings and market-related regulatory issues begin to ease.

The securities regulator has widened the scope of investment for directors, officers and employees of stock exchanges and market operators while retaining restrictions on their direct investment in stocks.

According to a new directive issued by the securities regulator, the officials concerned will be allowed to invest in non-convertible bonds, government securities, open-end mutual funds, exchange-traded funds (ETFs) and real estate investment trust (REIT) funds. ETFs and REIT funds, however, are yet to be introduced in Bangladesh's capital market.

Previously, the investment scope was limited to open-ended mutual funds for the targeted group.

The directive covers directors, officers and employees of stock exchanges, Central Depository Bangladesh Ltd. (CDBL), Central Counterparty Bangladesh Ltd. (CCBL), Bangladesh Institute of Capital Market (BICM) and Bangladesh Academy for Securities Markets (BASM).Online newspaper subscription

BICM and BASM have also been brought under the restriction in the latest directive, extending its application to organisations involved in capital market education, training and professional development.

The commission imposed restrictions on their direct investment in shares to prevent conflicts of interest and address concerns over the possible misuse of market-sensitive information by employees of capital market institutions, said Md Abul Kalam, executive director and spokesperson of the Bangladesh Securities and Exchange Commission (BSEC).

The restriction is particularly relevant and important for employees who have access to sensitive information relating to trading, clearing, settlement, depository operations, corporate actions or other market activities before such information becomes widely available.

The move is part of a broader effort to strengthen professional conduct and market integrity rather than merely restrict employees' personal investments, said Mr Kalam.

"The change therefore combines tighter restrictions on direct investment in listed securities with a wider scope for investment in fixed-income and diversified products," he said, adding that the restriction applies to BSEC officers and employees as well, with the directive having come into effect last week.Bangladesh economic report

The broader coverage indicates that the regulator is seeking to establish a common standard for individuals working across the capital market ecosystem, market operators said.

A DSE official, requesting anonymity, said the officials concerned and their dependents — sons, daughters, fathers and mothers — were previously not even allowed to open beneficiary owner's (BO) accounts.

Under the latest directive, however, they will be allowed to open BO accounts solely for investing in non-convertible bonds, government securities, open-ended mutual funds, ETFs and REIT funds.

The exemption of diversified investment vehicles reflects an attempt to strike a balance between preserving personal investment rights and securing market integrity, said Akramul Alam, head of research at Royal Capital.

The inclusion of BSEC officials means that the regulator itself is also subject to the investment restrictions.

"Even when there is no actual misuse of information, the public perception that an employee can benefit from privileged access to information may undermine confidence," said Mr Alam.

The BSEC's latest order is expected to reduce the scope for potential conflicts between institutional responsibilities and personal trading interests, he added.

Enforcement key to effectiveness

Market participants said the effectiveness of the directive would ultimately depend on proper monitoring and enforcement.

"Restrictions on paper are not enough. The regulator needs an effective monitoring and disclosure mechanism to ensure compliance," said a stockbroker, preferring anonymity.

Effective enforcement would require coordination among the BSEC, stock exchanges, brokerage firms, depository and other relevant market institutions.

The BSEC spokesperson said the commission would monitor the investment accounts of the individuals concerned and ensure that prohibited transactions do not take place.

"If the regulator finds any investment beyond the approved instruments, it will take action in accordance with the securities rules," he said.

One morning in August 2025, a Turkish textile giant walked into BIDA, exploring Bangladesh for its first overseas factory. Until then, Egypt had been its default choice. After discussing Bangladesh’s market, workforce, incentives and industrial zones, the company was more interested. Then came a simple question: “Can you show us which plots are available?”

We paused. That sat with a different agency. The investor asked, “But you just heard our whole story. Do we really have to start again with someone else? How annoying.”

This experience reflects the confusion investors have faced for years -- fragmented roles, duplicated functions and multiple desks for the same investment journey. Investors have long asked for one focal point, one front office.

That is where Invest Bangladesh came from.

The idea was shaped by feedback from investors, business associations, think tanks and policy papers calling for the agencies to be unified. Bangladesh has also had multiple national-level investment promotion bodies with overlapping mandates. That is why the creation of Invest Bangladesh became one of the priorities under the government’s 180-day plan. Invest Bangladesh formally began its journey on August 20, 2026, bringing BIDA, BEZA and PPPA under one apex investment development agency.

The significance is the combination of capabilities.

Investment promotion and facilitation, policy coordination, economic zone development and PPP capability can now sit within one institutional framework. The agency can remain with an investor throughout the investment lifecycle, from opportunity identification and location selection to approvals, implementation, aftercare and expansion. The investor should be able to bring the project to one platform instead of first trying to understand the government organogram.

The Invest Bangladesh Act, ratified by the parliament, introduces capabilities that are easy to overlook. The new agency has a mandate to facilitate the transfer or privatisation of state-owned assets. Bangladesh has over a hundred government assets that are either non-operational or loss-making despite having valuable land, facilities or infrastructure. The new structure creates a pathway to bring these assets into commercial use.

“One-stop service” has been used so loosely in Bangladesh that, for an investor, it can sometimes feel like “many stops”. Multiple agencies operate their own platforms, while interoperability remains limited and manual service delivery continues alongside digital systems.

The new Act addresses this more directly: one central platform, mandatory integration of relevant services and, over time, a transition away from parallel manual processes. This is critical if digitisation is to reduce investor touchpoints rather than replicate them online.

The Act allows sector experts and specialists to enter the institution at different levels, including leadership roles. This can help Invest Bangladesh operate as the private-sector-facing arm of government, translating investor feedback into policy intervention.

This is not the first rodeo.

Our predecessor, BIDA, was created over a decade ago through the merger of two institutions. The intent was right, but execution exposed important gaps. The organisational structure took years to finalise, while legacy rules and ways of working continued under a common name.

A sustainable merger needs more than a new signboard. It needs a common purpose, integrated systems, aligned people and clear accountability. Those lessons must shape this transition.

But will it solve everything? The answer is no; it will not.

Invest Bangladesh is not a silver bullet. It is a back-office integration designed to make the investor experience simpler, faster and more coherent. The direction is clear: the investment ecosystem is moving towards simplification, and policymakers are beginning to walk the talk on reform. The next job is harder: making sure execution is flawless, and investors actually feel the difference.

The writer is the head of Business Development at Invest Bangladesh

Malaysia’s data centres are consuming more power as temperatures rise, leaving a 9 gigawatt gas-fired capacity gap for the government to fill by 2032, officials said on Tuesday.

The share of data centres in overall power consumption surged to a record 9.3 percent in the second week of August, compared with an average of 7 percent this year, Energy Commission CEO Siti Safinah Salleh said.
“With the hotter weather, the cooling system requires a lot more energy,” she said.

Data centres could account for as much as 31 percent of peninsular Malaysia’s power demand by 2035, said Zaharin Zulkifli, deputy director for economic statistics and research at the Energy Commission.

As Malaysia, the region’s fastest-growing data centre hub, gradually phases out coal-fired power, the nation of about 35 million people will have to augment its gas-fired capacity by 9 GW by 2032, economy minister Akmal Nasir said.

The Southeast Asian country plans to retire the last of its coal-fired power plants by 2044, Akmal told reporters at an Energy Commission conference.

Malaysia is attracting billions of dollars in investments from major global tech firms including Amazon and Microsoft, leveraging its domestic gas reserves to address rising power demand this year and buck a regional decline in gas-fired generation as the Iran war chokes liquefied natural gas imports.

But with no additional gas-fired power expected to come online this year and next, Malaysia will “optimise” its current fleet to address rising demand until the end of 2027, Siti said, without providing further details.

The energy commission did not anticipate hot weather persisting longer than early September, which she said resulted in higher power use, she said.

“Because of the hot weather, our hydro dams are also at very low levels.”

Still, Malaysia does not face power shortages in the near future due to rising data centre deployments, said Gary Goh, senior manager for business development at Sprint DC Consulting.

“The demand surge is entirely within grid planning parameters and will continue to ramp predictably,” Goh said.

Global diesel supply will remain tight due to a lack of spare refining capacity, Russia’s ban on exports and the approach of peak winter demand, senior industry executives said on Tuesday.

The wars in Ukraine and Iran have impacted refineries in Russia and the Middle East, pushing diesel margins to record levels in Europe and the US, while reducing crude supplies to Asia.

“There’s really a shortage of products because we’re missing 2 million barrels a day from Russia, and we’re missing nearly 2 million barrels a day from the Middle East,” Vitol CEO Russell Hardy told the APPEC conference on Tuesday.

Hardy said crude is in a better supply position than products as the Middle East is exporting about 9 million bpd of crude and 1 million bpd of products.

“We’re still not running enough refining capacity to prevent those draws,” he said.

“We keep eating into the surplus that exists around the world, and we’re pretty much at the bottom of our stockpiles.”

Mark Senn, senior vice president of global trading at Phillips 66, said most US refineries were already running flat out.

“When you’re looking forward to a winter season coming where diesel stocks are quite deficit, you’re setting up for an environment where that strength could continue in those markets,” he added.

US diesel prices jumped to record highs late last week, while the product’s crack spread, a measure of refining profitability, surged to a record intraday high of $108.02 a barrel on Wednesday.

Vitol’s Hardy said high prices and the lack of available fuel supplies are expected to reduce global oil demand by about 1.5 million bpd in 2026 versus 2025.

He added that the gap between China’s crude imports in 2025 and 2026 at 5 million to 6 million bpd is unsustainable and he expects the gap to narrow towards the end of the year so China will have sufficient fuel for winter.

Canada’s retaliatory tariffs on billions of dollars in US products took effect Tuesday, as a trade war between the North American neighbors heats up.

The announced duties of 15 percent, 25 percent and 50 percent apply to $27.6 billion (US$20 billion) in imports from the United States, covering steel and aluminum products as well as dairy goods like cheese. But Canada removed some seafood products from the initial list.

Ottawa’s pushback comes weeks after US President Donald Trump imposed 50-percent tariffs on a similar value of Canadian products, over what Washington deemed as “discriminatory treatment” against US alcohol, automobile and dairy industries.

The US tariffs hit items like hockey sticks and cement, impacting about 5.5 percent of Canadian exports to the United States.

On Monday, Trump threatened to block sales of Canada’s Bombardier Aviation in the United States, unless the Quebec-based plane maker moves manufacturing to the US.

“No more selling Bombardier in the United States!” Trump posted in all caps on his Truth Social platform, though he did not specify how he would achieve a sales halt.Thousands of Bombardier aircraft currently operate in US airlines’ domestic fleets.In a statement Monday, the aerospace company touted its creation of “tens of thousands of jobs across the United States,” with “direct employment” in more than 20 states, including Kansas, Texas, Arizona and California.

The company also noted that it spends over $2.5 billion annually with suppliers, and said its supply chain is “made up of approximately 2,800 American companies across 47 states.”

“Bombardier values its great partnership with American companies and its US employees,” the company’s statement said.

US tariffs pose a modestly negative risk to Canada’s overall economy, but analysts note that they have a sharper impact on Central Canada’s manufacturing sector.

Negotiations between both sides broke down August 21 after days of meetings in Washington, with Canadian Prime Minister Mark Carney saying he decided to suspend the trade talks.

At the time, Carney said the Trump administration’s terms were ultimately unacceptable, adding that US negotiators had introduced restrictions on Canadian trade deals with other countries at the eleventh hour.

US officials also made unacceptable “threats” to the French language and “Quebec culture,” he added, referencing the French-speaking province in eastern Canada.

But Trump’s top trade official Jamieson Greer later noted that the US government is aware that French language protections are sensitive and important.

“This is not something where we push hard, or condition, or red-line,” he told Canadian public broadcaster CBC last month.

Ottawa and Washington have not resumed negotiations since, and have continued trading barbs.

Asked if both sides were in a trade war, US Treasury Secretary Scott Bessent told CNBC last week (Aug 31) that he did not think one could be in a tit-for-tat fight with a country that is 13 times larger.

“We’re not at war with Canada,” Bessent said on the sidelines of a G20 finance leaders’ meeting. “How are we going to be at war with Canada? They’re going to take their two set submarines from the Edmonton Mall and sic them on us?”

He was referring to a former attraction at a shopping center in the Alberta province.
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Pentagon chief Pete Hegseth separately appeared to mock the physical appearance of a Canadian soldier on social media.

Carney said a day later that the remarks were “beneath their office,” adding that this was “not constructive.”

He said both sides can have discussions “when the Americans stop doing memes” and start being serious.

Trump also signed an order in August to rename Lake Ontario, on the border with Canada, as “Lake America.”

This has sparked anger in Canada, amid a broader wave of patriotism triggered by Trump’s hostility.

At the start of his second presidency, Trump also ordered the Gulf of Mexico be renamed the Gulf of America. He has made claims that Canada should become the 51st US state as well.

Although Carney is backed by Canadian public opinion, his country remains reliant on its neighbor. Nearly 60 percent of Canada’s imports come from the United States and about 70 percent of its exports go to the US market.

To help businesses and workers, Canada’s government has unveiled an aid package of $7.5 billion (US$5.4 billion).

Amid the ongoing energy crisis and a strong government push for renewables, industrial conglomerates Walton and PRAN-RFL are establishing local manufacturing units for solar inverters and lithium-ion batteries. Walton is also planning a dedicated solar panel manufacturing facility.

The initiatives aim to reduce import dependency and build an end-to-end domestic solar power supply chain, officials from both business groups told The Business Standard.

Simultaneously, the two groups plan to invest in small, medium, and large-scale solar power projects nationwide under a capex model – supplying equipment while providing operation and maintenance services to public and private sector clients.

According to officials from the Prime Minister's Office and both conglomerates, the projects gathered momentum following a 1 August meeting with private-sector entrepreneurs, where Prime Minister Tarique Rahman urged businesses to invest heavily in renewable energy.

PRAN-RFL's manufacturing and generation expansion

Kamal Kamruzzaman, marketing director at PRAN-RFL Group, stated that work has commenced on a $1 million solar inverter manufacturing plant at Palash in Narsingdi.

"The plant is expected to begin production within three to four months, with a capacity to manufacture up to 1,000 inverters monthly in the 1kW-5kW range alongside storage batteries," Kamruzzaman said. He added that PRAN-RFL plans to establish a second inverter facility in Habiganj with an investment of approximately $4 million.

PRAN-RFL has invested around Tk100 crore in solar energy to date, generating 40MW. It aims to scale generation capacity to 100MW by the end of this year.

"We have aligned our investments to meet 100% of PRAN-RFL Group's electricity demand from solar power by FY28," Kamruzzaman noted. By then, the group's total demand is projected to reach 250MW, with solar generation capacity planned to match or exceed that requirement.

Once local production begins, PRAN-RFL intends to expand its installation and maintenance services for third-party commercial and residential clients, as well as compete for government projects through public tenders.

Walton steps up production capabilities

Walton has commenced setup of a solar inverter manufacturing plant at Chandra, Gazipur. It has also completed a lithium-ion battery plant, which is slated to begin commercial production within a month, according to Md Nazmul Islam, executive director and head of Electrical and Renewable Energy at Walton Group.

Walton currently imports ARC inverters from China as an original equipment manufacturer (OEM), branding them locally.

In a written response, Walton confirmed that setting up local lithium-ion battery, solar inverter, and solar panel production facilities is designed to build domestic resilience, lower carbon emissions, and generate industrial employment.

$15m inverter imports annually

In a solar power system, photovoltaic cells in solar panels convert sunlight into direct current (DC) electricity. An inverter converts the DC electricity into alternating current (AC), which can power household appliances and feed surplus electricity into the national grid.

Bangladesh currently has no local solar inverter production. Most inverters are imported from China, Japan and India, with annual imports worth around $15 million. According to the NBR, Bangladesh imported 429.4 tonnes of solar inverters between December and May.

Lithium-ion batteries store electricity generated by solar panels for use when sunlight is unavailable. Systems ranging from household rooftop installations to large solar plants can store daytime generation for use at night or during peak demand.

To encourage local manufacturing, the government has reduced duties on imported raw materials for inverters, batteries and solar panels to 1%. By contrast, commercial imports face duties of around 28% on inverters, 63% on solar panels, and 29% on batteries.

The government has also set a target of generating 4,000MW of solar power by the end of this year and 10,000MW by 2030. It has recently announced a net-metering system under which solar power producers will be able to sell surplus electricity to the national grid at Tk10.50 per unit, including an additional profit incentive.

End-to-end support

Industry stakeholders expect demand for solar panels, inverters and lithium-ion batteries to rise amid power shortage, government incentives, and duty concessions. Although households have installed solar panels for years, limited maintenance and after-sales services have discouraged wider investment.

Walton and PRAN-RFL now plan to offer end-to-end support to individuals and businesses interested in installing solar power systems. Under the model, customers will finance the investment while the companies will install the plants and provide maintenance if contracted. Customers can also maintain the systems themselves.

The groups are also seeking opportunities to build solar power plants for government agencies. They will have to compete through public tenders to secure such projects.

Bangladesh Export Processing Zones Authority (Bepza) Economic Zone-2 in Mirsharai, Chattogram, has seen its first export with a $50,000 shipment of tobacco machinery to Indonesia, marking the start of commercial operations at the zone.

Lee's Tobacco Machinery Company Ltd, the zone's first exporting enterprise, shipped the machinery yesterday (8 september) after obtaining its export permission from the Bepza on 3 September.

With the export, Economic Zone-2 has entered its operational phase, bringing the number of operational Bepza industrial zones to 10 – eight Export Processing Zones (EPZs) and two Economic Zones.

Md Whaheduzzaman, executive director of Bepza Economic Zone-2, said the export could help Bangladesh expand trade with Indonesia and diversify its export destinations.

"Bangladesh's exports to Indonesia are comparatively low. In this context, the commencement of exports from Bepza Economic Zone-2 to Indonesia is expected to contribute positively to expanding Bangladesh's export market and diversifying its export destinations," he said.

Established with investment from the United Arab Emirates and Singapore, Lee's Tobacco Machinery is a 100% export-oriented enterprise that manufactures machinery used in tobacco product manufacturing.

Bepza approved the company on 22 January 2025. It has invested $3.72 million and currently employs 29 officers, employees and workers.

Bepza Economic Zone was established on 1,138.55 acres in Mirsharai and was later divided into Economic Zone-1 and Economic Zone-2 to facilitate more effective administrative and operational management.

Economic Zone-1 has allotted plots to 47 enterprises, of which 15 have started production.

In Economic Zone-2, 18 enterprises have been allotted plots. Lee's Tobacco Machinery has started commercial operations, while three more enterprises are expected to begin production and exports shortly. The remaining 14 enterprises are under construction.

The government has increased monthly allowances and expanded beneficiary coverage under several social safety net programmes for the 2026-27 fiscal year, including support for older people, widows and deserted women, and people with disabilities.

The one-time medical assistance for critically ill patients has also been doubled to Tk1 lakh.

Social Welfare Minister AZM Zahid Hossain disclosed the information in response to a starred question from Netrokona-3 lawmaker Rafiqul Islam Hilaly in parliament today (8 September).

Higher allowances, more beneficiaries

The monthly allowance for older people has been increased from Tk650 to Tk700, while the number of beneficiaries has risen from 61 lakh to 62 lakh.

For widows and deserted women, the monthly allowance has also increased from Tk650 to Tk700, with beneficiary coverage expanding from 29 lakh to 30 lakh.

The allowance for people with disabilities has been raised from Tk900 to Tk1,000 a month. The number of beneficiaries has also increased from 34.5 lakh to 38 lakh.

The government has also increased both the rates and coverage of scholarships for students with disabilities.

Under the revised structure for FY2026-27, monthly scholarships will be Tk1,000 for primary-level students, Tk1,100 for secondary-level students, Tk1,200 for higher-secondary students and Tk1,400 for university-level students.

The number of scholarship recipients has been increased from 81,000 to 1 lakh.

Meanwhile, the number of beneficiaries under the financial assistance programme for critically ill patients suffering from cancer, kidney disease, liver cirrhosis, stroke-induced paralysis, complex heart disease, leukaemia and thalassaemia has been raised from 60,000 to 65,000.

The one-time emergency medical assistance for such patients has been doubled from Tk50,000 to Tk1 lakh.

Govt moves to prevent misuse of safety net funds

The minister said the government has taken steps to improve the living standards of disadvantaged and low-income people while ensuring greater transparency in the distribution of social safety net funds.

He said beneficiary information must now be verified against the national identity database to ensure assistance reaches genuine recipients.

This has helped prevent ineligible people from receiving benefits through political or personal influence, he said.

Applications are now accepted online, while lists of poor and disadvantaged people are prepared and updated through open verification committees at union and ward levels.

The government-to-person (G2P) payment system has also been introduced to transfer assistance directly to beneficiaries without intermediaries.

"Under this system, assistance is deposited directly into beneficiaries' bank or preferred mobile financial service accounts, eliminating intermediaries and commission-based practices," the minister said.

He said the government would continue to use digital technology, expand social safety net programmes and strengthen monitoring of beneficiary selection to ensure support reaches those who need it most.

Bangladesh's trade deficit widened in July, the first month of the current fiscal year, mainly due to higher imports of petroleum products and fertiliser, while exports declined.

The trade deficit rose to $2.09 billion in July, compared with $1.5 billion in the same month of the previous fiscal year, according to balance of payments data released by the Bangladesh Bank yesterday (8 September).

According to BoP data, imports grew by 8.6% in July, while exports declined by 1.9%. As imports exceed exports, the trade deficit widens.

Petroleum product imports amounted to $1.37 billion in July, up from $750 million in the same month a year earlier, representing an increase of more than 83%.

Meanwhile, fertiliser import costs rose also by 50% to $187 million in July, compared with $125 million a year earlier.

Dr Zahid Hussain, former lead economist at the World Bank's Dhaka office, said a single month's balance of payments data was not enough to draw any significant conclusion.

"However, the trade deficit has widened because imports increased while exports declined. The deficit was also lower in the same period of the previous fiscal year," he said.

Current account surplus

Bangladesh's current account surplus stood at $64 million in the first month of the current fiscal year, down from $125 million in the same month of the previous fiscal year.

The surplus declined despite higher remittance inflows, mainly because the trade deficit exceeded $2 billion. However, the key factor keeping the current account in surplus was the strong inflow of remittances.

Bangladeshis working abroad sent home $2.86 billion in remittances in July, compared with $2.48 billion in the same month a year earlier. This represents a 15.4% year-on-year increase in remittance inflows.

Dr Zahid Hussain said the current account remained in positive territory because of the rise in remittances.

"The current account could have gone into deficit because of the large trade deficit, but the increase in remittance inflows prevented that," he said.

Financial account turns negative

The financial account recorded a deficit of $677 million in July, compared with a deficit of $746 million in the same month of the previous fiscal year.

The financial account had remained in surplus until June of the previous fiscal year.

Dr Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management (BIBM), said the main reason for the financial account deficit was a $536 million net deficit under deposits, money and banking-related flows (DMBs and NBDCs).

"This means payments to overseas banks increased, resulting in higher outflows of funds from the country," he said.

In July of the previous fiscal year, this component had recorded a surplus of $53 million.

Bangladesh Bank data show that the negative financial account pushed the overall balance of payments into deficit.

The World Bank today (8 September) recommended a phased approach to tariff reform in Bangladesh, with reductions in duties on intermediate inputs, lower protection for highly protected consumer goods and a pre-announced multiyear phase-out of para-tariffs to make the country's trade regime more competitive.

The recommendations were made in a new World Bank study titled "Bangladesh Trade Policy at a Crossroads: Evidence for the National Tariff Policy, LDC Graduation, and the Next Generation of Trade Agreements," presented by Dr Nora Dihel, Senior Economist for Macroeconomics, Trade and Investment at the World Bank, at a programme here today.

The Policy Research Institute of Bangladesh (PRI), in collaboration with the World Bank Group organized the programme at its Banani office in the city.

The study recommends that Bangladesh gradually should reduce remaining regulatory and supplementary duties, known as para-tariffs, and eventually brings its tariff structure closer to the levels of regional competitors, including India, China and Vietnam.

According to the study, Bangladesh's trade-weighted average Most Favoured Nation (MFN) tariff stands at 7.0 percent across 5,666 tariff lines based on FY2026 data. However, after para-tariffs are taken into account, average nominal protection rises to 15.4 percent.

The gap is particularly significant in sectors such as footwear, hides and skins, stone and glass, and transportation equipment. In the footwear sector, for instance, nominal protection reaches 70.4 percent, compared with an MFN tariff of 25 percent.

The World Bank recommended that tariff reform be accompanied by stronger domestic revenue mobilisation to manage the fiscal implications of lower import duties.

It also called for the removal of non-tariff barriers, liberalisation of services trade and adjustment support for workers and sectors affected by trade liberalisation.

Using its Tariff Reform Impact Simulation Tool (TRIST), the World Bank estimated that a 10 percent reduction in customs duties alone would reduce import tax revenue by around $189 million.

If the same reduction were combined with full removal of para-tariffs, the fiscal cost would rise to around $1.4 billion, it said.

The study estimated that complete elimination of both customs duties and para-tariffs would cost about $3.7 billion, equivalent to 40.8 percent of import tax revenue or 0.83 percentage points of GDP.

The World Bank therefore stressed the need for a carefully sequenced reform programme rather than an abrupt reduction in border protection.

The study also recommended that Bangladesh pursue deeper trade agreements to prepare for its graduation from the Least Developed Country (LDC) category.

Bangladesh is scheduled to graduate from LDC status on 24 November, 2026, although the government has requested a deferral of at least three years.

The study found that unilateral trade reforms, particularly deeper cuts in input tariffs and removal of para-tariffs on intermediate goods, could increase real GDP by up to 0.52 percent.

A deeper multi-partner free trade agreement strategy, benchmarked against Vietnam's trade agreements, could raise real GDP by 0.73 percent, or around $3.2 billion, with about two-thirds of the gains coming from agreements with RCEP and ASEAN members.

The World Bank recommended that Bangladesh combine domestic tariff reforms with an active strategy to secure preferential market access and expand its participation in regional and global trade arrangements after LDC graduation.

The study was presented at a high-level discussion organised by PRI, bringing together policymakers, economists, researchers and business leaders to discuss Bangladesh's National Tariff Policy, LDC graduation and the next generation of trade agreements.

PRI Chairman Dr. Zaidi Sattar chaired the programme, while Md. Fazlul Hoque, Administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), attended as the chief guest.

The programme also brought together distinguished economists, researchers and business leaders.

PRI Distinguished Fellow Dr. Ahsan H. Mansur delivered the closing remarks.

On paper, the inflation situation in Bangladesh is improving, but the squeeze on households continues as wage growth has slowed further, lowering real incomes.

Updated figures from the Bangladesh Bureau of Statistics (BBS) show overall inflation fell to 8.26 per cent in August, the second month of the 2026-27 fiscal year.

But wage growth dropped to 8.05 per cent, widening the gap between what people earn and what they pay for goods and services.

August's inflation figure marks the lowest the indicator has hit in 10 months.

Wage growth, meanwhile, has hit its lowest point in seven months.

Data reveals wage growth has now trailed inflation for four and a half consecutive years.

In January 2022, wage growth stood at 5.92 per cent, briefly outpacing overall inflation of 5.86 per cent.

But from the following month, February, onward, spending began outrunning earnings and never looked back.

This prolonged mismatch has steadily eroded the “real income”, or purchasing power, of the public, particularly low-income and limited-income groups.

A point-to-point inflation rate of 8.26 per cent in August implies that a basket of essential goods and services costing Tk 100 last year now costs Tk 108.26.

By contrast, the 8.05 per cent national wage growth rate means someone who earned Tk 100 last year now earns Tk 108.05 this year.

In other words, the cost of living has climbed faster than incomes have grown. That has forced people to either trim their spending or dip into savings.

Selim Raihan, executive director of the South Asian Network on Economic Modeling (SANEM) said: “We would have welcomed a scenario where wage growth kept pace with falling inflation.

“But the current data paints a worrying picture, inflation is placing extra strain on real wages. In effect, even as nominal income rises, higher market costs are eating it away."

With inflation outpacing wage growth for a prolonged stretch, he said real incomes were shrinking “alarmingly”.

"People's spending power is shrinking. Many are dipping into savings, others have none left to dip into."

Jahangir Alam Khan, director of the Dhaka School of Economics, said: "Prices across the board remain steep. On top of that, everyone is paying more for gas and electricity.

“The bigger issue is that even after the peak Boro harvest season, prices of rice, our staple food, haven't come down."

The economist recommended strengthening market monitoring rather than relying solely on tight monetary policy to keep inflation in check.

Inflation, Wages In Flux

During the July Uprising in 2024, headline inflation spiked to 11.66 per cent before fluctuating between 9 per cent and 12 per cent amid the political transition, while wage growth remained anchored around 8 per cent.

Fiscal 2025-26 opened with single-digit inflation that oscillated between 8 per cent and 9.5 per cent, before moderating to 8.32 per cent in July and 8.26 per cent in August.

Meanwhile, the BBS wage index hovered near 8 per cent throughout the year, easing from 8.22 per cent in July to 8.05 per cent in August.

The bulk of the national workforce operates within the informal sector, where wage-based employment predominates.

Informal Sector Bears The Brunt

The bulk of the country's workforce operates in the informal sector, almost entirely on a wage basis.

According to BBS's latest labour force survey, 84 per cent of the employed population works in the informal sector.

Roughly 88 per cent of rural workers and 74 per cent of urban workers fall into this category.

This vast, socially unprotected workforce bears the brunt of rising prices more than anyone else.

The BBS compiles its wage rate index monthly, gathering data across 44 occupational categories, including farm labourers, transport workers, fishermen, day labourers and construction workers.

As per August data, wage growth was lowest in the industrial sector at 7.97 per cent. The services sector saw wages grow 8.25 per cent, while agriculture recorded 8.07 per cent growth.

The wage rate index has its limitations. BBS's index does not represent the earnings of the entire labour market, salaried employees and relatively higher-income professionals fall outside its scope.

As a result, the index largely captures the pressure between income and inflation for lower-wage workers. It offers no clear picture of how much strain the middle class is under.

Customers of Sammilito Islamic Bank withdrew Tk670 crore from their deposits over the past two days, against withdrawal applications totalling Tk2,345 crore, according to bank sources.

The bank's branches across the country processed withdrawals yesterday and today (8 September) under normal procedures. Around 14,000 customers withdrew money during the two days, while applications for withdrawals had been submitted by about 37,600 customers, a senior Bangladesh Bank official said.

He said withdrawals increased slightly on the second day as some customers who could not visit branches yesterday came the following day. The bank paid them in full according to their requirements.

Md Abedur Rahman Sikder, managing director of Sammilito Islamic Bank, said the number of customers actually withdrawing money was much lower than the number who had applied.

"Many customers are visiting branches, reviewing the overall transaction situation and leaving without withdrawing their deposits. New customers are also opening deposit accounts at many of our branches," he said.

Sammilito Islamic Bank was formed through the merger of First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank and EXIM Bank. The five banks have a combined 761 branches.

A total of 74,000 applications have been submitted by customers of the five banks, seeking Tk3,925 crore in withdrawals. Bangladesh Bank provided Tk5,000 crore to the new bank on Sunday to facilitate deposit repayments, after which funds were sent from the head office to branches.

Overall provisioning shortfall against loans in Bangladesh's banking system overran Tk 2.0-trillion mark with a 16-percent or Tk 309.16 billion rise in the first half of 2026.

Economists say such deficit in provisioning reflects the weakening lending capacity of banks and causing vulnerabilities across the economy.

The aggregate amount of provisioning shortfall crossed Tk 2.0 trillion again, indicating poor credit discipline in many of the banks due mainly to growing non-performing loan (NPL) buildup in the industry.

According to the central bank's latest statistics, the volume of provisioning shortfall in the banking sector came to Tk 2.22 trillion as on June 30 this year. It was Tk 1.91 trillion just six months ago.

The shortfall was Tk 2.05 trillion on March 31 this year.

Banks, however, usually keep the required provisions against both classified and unclassified loans from their operating profits as guardrails mitigate risks.

As per regulations, banks are required to set aside a portion of their profits as provisions to cover potential loan losses. When a bank fails to maintain the requisite level of provisions, the shortfall is recorded as a provision deficit, signalling a weakening financial health and heightened risks for depositors and the broader economy.

Under the existing BB rules, the banks have to keep 0.25-percent to 5.0- percent provision against loans under general category, 20 per cent against substandard category, 50 per cent against doubtful loans, and 100 per cent against bad or loss category of credits.

With NPLs rising rapidly and profits remaining under pressure, many scheduled banks have struggled to meet these regulatory obligations.

According to the central bank's reports, private commercial banks (PCBs) recorded a higher provisioning shortfall than state-owned commercial banks (SoCBs) during the period under review.

The total provisioning shortfall of PCBs rose to Tk 1.48 trillion as of June 30, from Tk 1.21 trillion six months earlier, while the provisioning shortfall of SoCBs increased to Tk 746.34 billion, from Tk 703.64 billion.

On the other hand, foreign commercial banks (FCBs) were able to maintain a provisioning surplus, reflecting their comparatively stronger financial condition and risk-management practices.

The total provisioning surplus of FCBs rose to Tk 5.80 billion during the period under review from Tk 3.38 billion by the end of December 2025.

Specialized banks (SBs), meanwhile, maintained a provisioning surplus of Tk 458.60 million as of June 30, compared with provisioning shortfalls of Tk 2.22 billion as of March 31, 2026, and Tk 2.01 billion at the end of December 2025.

"Higher volume of NPLs pushed up the amount of provisioning shortfall of the banks," a senior official at the Bangladesh Bank (BB) told The Financial Express (FE), while replying to a query.

During the period under review, the volume of NPLs in the banking system grew by nearly 9.0 per cent to Tk 6.06 trillion from Tk 5.57 trillion as on December 31, 2025. It was Tk 5.88 trillion as on March 31, 2026.

"NPLs will have to be reduced to improve the provisioning situation in the banking system," the central banker explains.

He also says the central bank is working to reduce the volume of classified loans through both NPL resolution and effective management.

Under NPL resolution, a formal market for buying and selling bad loans will be created if parliament enacts the Distressed Asset Management Act (DAMA) 2026, according to the central banker.

The central bank has already urged the finance minister to take necessary steps to place the proposed amendment to the Artha Rin Adalat Ain 2003 and the new DAMA 2026 before parliament during its ongoing session, out of exigency.

Bangladesh Bank Governor Md. Mostaqur Rahman has issued a Demi-Official (DO) letter to the finance minister requesting the enactment of the proposed amendments to the Money Loan Court Act as well as the proposed new DAMA during the ongoing session of parliament.

Talking to the FE, Md. Ezazul Islam, director-general of Bangladesh Institute of Bank Management (BIBM), said the widening provisioning deficit reflects a structural crisis rooted in corruption in the banking sector, poor credit discipline, years of inadequate supervision and regulatory relaxations.

"Unless defaulted loans are recovered and governance improves, the growing provisioning shortfall will continue to weaken banks' lending capacity and increase vulnerabilities across the economy," notes Dr Islam, also a former executive director of the central bank.

Bangladesh’s mobile network quality mostly met regulatory standards in July, but a long-delayed assessment by the Bangladesh Telecommunication Regulatory Commission (BTRC) found significant differences between operators’ reported figures and the regulator’s own measurements.

The assessment compared Quality of Service (QoS) data reported by the country’s four mobile operators -- Grameenphone, Robi, Banglalink and Teletalk -- with network data collected by the BTRC.

It was BTRC’s first QoS assessment in more than four years and the first to publish network performance data at national, district and upazila levels.

However, both BTRC and industry officials said the assessment used data from the regulator’s Telecom Monitoring System (TMS), rather than standard drive tests.

The two methods differ in how they measure network quality, collect data, select samples and cover different areas. Industry officials said TMS data may not always reflect customers’ experience, especially when operators have different levels of network coverage and different customer bases.

The assessment report found that most operators met key national benchmarks. However, differences between operators’ reported figures and BTRC’s measurements, the lack of raw data and uneven performance across locations raise concerns.

TELETALK MISSES TWO 4G STANDARDS

Teletalk was the only operator to fall below regulatory standards on two major 4G indicators in July.

Its 4G Radio Resource Control (RRC) success rate was 98.49 percent, below the required 99 percent. Its 4G data non-retainability rate was 0.64 percent, higher than the permitted 0.5 percent.

RRC success measures how often devices successfully connect to a 4G network, while non-retainability measures unexpected data disconnections.

BTRC could not independently verify Teletalk’s figures because its raw or binary files were incomplete. The report repeatedly marked the data as “Incomplete raw/binary file from Teletalk” at national, district and upazila levels.

Teletalk’s performance also varied sharply across locations. Its 4G RRC success rate met the regulatory standard in only 12 of the 64 measured upazilas. At the upazila level, just 136 of 537 measurements met the requirement.

Despite these weaknesses, Teletalk reported an average 4G download speed of 11.20 Mbps, well above the minimum requirement of 3.50 Mbps.

Its CSFB success rate -- the rate at which 4G devices successfully switch to older networks to make voice calls -- was 99.64 percent.

GRAMEENPHONE MEETS STANDARDS

Grameenphone remained within BTRC’s required standards, although the assessment found differences between some of its reported figures and the regulator’s measurements.

BTRC recorded Grameenphone’s 2G call drop rate at 0.33 percent, exactly matching the company’s figure. Its average 4G download speed was 8.23 Mbps, compared with 8.22 Mbps reported by the operator.

The largest gap was found in the VoLTE (voice over long-term evolution) call drop rate. BTRC measured it at 0.38 percent, while Grameenphone reported 0.04 percent. Both figures were below the regulatory limit of 0.5 percent.

Grameenphone’s CSFB success rate was 98.65 percent, above the required 98 percent.

The assessment also found notable differences in some upazilas, particularly in Bandarban and Rangamati.

Tanveer Mohammad, Grameenphone’s chief corporate affairs officer, said that improving QoS was an ongoing process and that the company remained committed to enhancing the customer experience.

“Grameenphone has met all BTRC QoS criteria in its latest reports, except in some areas of the Hill Tracts, where we are working to improve the network,” he said.

ROBI DATA FACES VERIFICATION PROBLEM

Robi also faced data and network quality challenges during the assessment.

BTRC measured Robi’s average 4G download speed at 6.85 Mbps. This was the lowest among the operators whose data BTRC could independently verify, but it was still above the 3.50 Mbps minimum.

Robi’s 2G call setup success rate was 99.29 percent, only slightly above the 99 percent benchmark. The assessment also found differences between Robi’s reported figures and BTRC’s measurements in several locations.

BTRC could not independently verify data from 41,819 Robi cells because the required raw or binary files were unavailable.

As operators generally keep such files for only seven days, BTRC used Robi’s processed data instead. The regulator said the problem would be addressed from the following month through daily data reconciliation.

Robi’s Chief Corporate and Regulatory Officer Shahed Alam, questioned the use of TMS data alone to assess network quality.

He said the results could be affected by the number and geographical spread of measurements. As a result, operators with limited coverage or smaller datasets could appear to perform better than those operating wider networks with more traffic and customers.

“Comparing operators solely based on TMS-derived QoS figures can lead to misleading conclusions,” he said.

Shahed also said there was no established international regulatory practice of using TMS data alone to determine or compare overall QoS.

“The credibility of any QoS assessment depends on the methodology, measurement coverage, sampling framework, transparency and representativeness of the underlying data,” he said.

BANGLALINK SHOWS MOST CONSISTENT RESULTS

Banglalink recorded the most consistent results across the key indicators measured by BTRC.

The regulator measured its 2G call setup success rate at 99.73 percent and its average 4G download speed at 8.61 Mbps.

Its 2G call drop rate was 0.36 percent, while its 4G RRC success rate was 99.84 percent. Its CSFB success rate stood at 99.19 percent and its SMS completion rate at 99.81 percent.

At the national level, the differences between Banglalink’s reported figures and BTRC’s measurements were generally small.

However, the assessment found that six upazilas, including several in Bandarban, had “No Service” on both 2G and 4G networks.