The Chittagong Stock Exchange (CSE) PLC's operating loss widened 13.54% year-on-year to Tk16.58 crore in FY26, while its net profit fell 28.35% to Tk20.59 crore amid subdued trading activity.

According to disclosures approved by its board on 8 October, the operating loss increased from Tk14.60 crore in FY25. Net profit after tax fell from Tk28.74 crore in the previous fiscal year, pulling earnings per share (EPS) down to Tk0.32 from Tk0.45.

A CSE official said the exchange remained profitable mainly because of interest income from fixed deposit receipts (FDRs) held with different banks. However, a shortage of listed products and low trading turnover resulted in an operating loss.

Despite the decline in profit, the board recommended a 3.25% cash dividend for the fiscal year ended 30 June 2026.

The dividend recommendation is subject to shareholders' approval at the annual general meeting (AGM), scheduled for 10 December at the CSE Building conference hall in Agrabad, Chattogram. The record date for dividend entitlement is 8 November.

The exchange's net operating cash flow per share (NOCFPS) stood at Tk1.05 in FY26, slightly down from Tk1.06 in FY25. Net asset value (NAV) per share also edged down to Tk11.93 as of June 2026, from Tk11.96 a year earlier.

Prime Minister’s Adviser on Finance and Planning Prof Rashed Al Mahmud Titumir on Friday said Bangladesh faces an additional $4.12 billion burden on energy and fertiliser imports over seven months due to the Middle East crisis.

“If this war continues, then we have to count almost $600 million per month,” he said, stressing that developing countries should not be left to bear the costs of global crises without adequate international support.

The PM’s adviser made the remark, addressing a high-level conference titled ‘An Asia for Everyone: Public Services, Social Protection and the Promise of Shared Prosperity’ at Chulalongkorn University in Bangkok, Thailand, just ahead of the World Bank and IMF Annual Meetings.

He said the international community must take responsibility for the economic costs borne by developing countries through no fault of their own.

Titumir said Bangladesh would need an additional $1.82 billion for liquefied natural gas (LNG) imports, around $70 million for fertiliser and $2.21 billion for oil during the seven months from March to September due to the crisis.

“But we don't see multilateralism. We don't see international voices. We don't see action, we see inactions,” he said, criticising what he described as the lack of effective action by the international community and civil society to address the economic consequences of the crisis for countries that were not responsible for it.

He urged international organisations and civil society groups to make the issue a priority during the upcoming World Bank and IMF meetings in Bangkok.

He pointed out the non-action of the global community and a government that is counting the cost.

The adviser said inequality was not simply a matter of differences in people's living conditions but was also created and sustained by public policies and the distribution of political power.

“If we are to deal with it, then we must deal with the politics of it and political settlement of it, which means that we have to deal with how power is skewed,” he said.

The Bangladesh Securities and Exchange Commission is preparing to use its statutory powers to push government-owned companies, multinational corporations and large private enterprises to list on the stock market, aiming to deepen market liquidity and reduce the economy's heavy reliance on bank financing.

Speaking at the IDLC Capital Markets Conclave 2026, organised by IDLC Investments Limited at a hotel in Dhaka today (10 October), BSEC Chairman Masud Khan said the securities regulator had clear legal authority to require any company or class of companies to go public.

He said the commission preferred voluntary participation but would closely monitor compliance and exercise its enforcement powers where necessary.

Several private sector representatives attended the event.

Directly addressing the widespread reluctance among large private conglomerates to go public, the BSEC chief warned that the current regulatory stance leaves no room for avoidance.

Masud said the commission is undertaking structural reforms to streamline the initial public offering (IPO) process and address longstanding barriers to market entry.

The BSEC has restructured pre-submission verification procedures, placing direct accountability on statutory auditors to reduce delays in processing applications, he said.

The commission has also revised its valuation approach, moving away from institutional consensus requirements and traditional dividend discount models towards a price-discovery mechanism based on Dutch auction principles, according to Masud.

He argued that large companies could benefit from listing by gaining access to long-term capital and strengthening their prospects for expansion and succession planning. He cited multinational manufacturers such as Honda, Toyota, BMW and Mercedes-Benz, as well as regional business groups such as Tata and Lafarge, as examples of enterprises that evolved from family-run businesses into major corporations.

He also said greater reliance on transparent banking transactions and stricter tax oversight is making opaque financial practices increasingly difficult to sustain.

In parallel, market authorities are advancing reforms to activate the corporate bond market by shifting corporate debt instruments directly to the main board instead of the underutilised Alternative Trading Board. With approximately Tk3,500 crore in corporate bonds approved under strict main-board listing parameters, regulatory leaders project a vibrant debt market in the coming months.

Concurrently, efforts are underway to reactivate Central Counterparty Bangladesh Limited to modernise settlement operations and pave the way for sophisticated instruments such as derivatives and short-selling.

Welcoming guests to the conclave, Jamal Uddin, CEO of IDLC Finance and chairman of IDLC Investments, underscored the strategic imperative of bringing established enterprises into the market to build an effective alternative for long-term corporate financing.

He highlighted that while the banking sector remains an indispensable foundation for the economy, over-reliance on bank credit creates severe financing pressures that a robust equity market could alleviate.

Echoing these views, Kazi Mahmood Sattar, chairman of IDLC Finance, stressed that the historical over-dependence on bank credit has revealed severe structural limitations, particularly as non-performing loans in the banking sector have escalated past 20%.

He argued that expanding equity and bond markets is essential to relieve pressure on commercial banks during economic downturns, urging corporate entities and the government to utilise capital market instruments for large-scale long-term funding.

Detailed analytical perspectives were presented by Nazneen Ahmed, executive director at the Centre for Policy Dialogue, who stressed that restoring retail investor confidence hinges entirely on market transparency, strong governance, and the entry of reputable, high-performing enterprises.

She noted that general investors often retreat from equity markets due to unexplainable index volatility, making strict regulatory oversight and balanced financing structures essential for job creation and sustainable economic expansion.

Highlighting the practical hurdles faced by expanding businesses, Mesbah Uddin Ahmed, managing director at IDLC Investments, outlined four core challenges confronting scaled enterprises: excessive debt dependency, complex asset valuation and liquidity bottlenecks, difficult family-to-corporate leadership transitions, and high founder dependency.

He explained that listing on the capital market resolves these operational barriers by providing permanent equity, separating ownership from professional management, and instilling high standards of accountability.

Analysing historical market dynamics, Dhaka Stock Exchange Chairman Mominul Islam remarked that the capital market remained disconnected from mainstream economic planning for decades due to past mismanagement and systemic inefficiencies.

He pointed out that while leading institutions like Renata, ACI, Square, and Uttara Bank listed during earlier market phases, the rapid expansion of private sector banking in the 1990s made bank credit overly accessible, reducing the incentive for quality firms to list. "This shortage of quality scrips created space for weaker companies and market manipulation, driving institutional capital away," Mominul added.

Addressing broader macroeconomic realities, Imam Abu Sayed, executive director (research) at the Bangladesh Bank, observed that while global institutions forecast GDP growth around 4%, the country holds an underlying potential exceeding 7%.

With manufacturing accounting for nearly 25% of the economy, he noted that industrial growth has shown signs of saturation, requiring enhanced professional competence and international-standard licensing in financial deal-making. He added that inflation, currently around 9.5%, remains tightly linked to international market volatility in capital machinery and raw material imports.

Representing the real sector, MA Rahim, vice chairman of DBL Group, shared practical insights on corporate restructuring, highlighting his conglomerate's experience in managing generational succession of second-generation family members returning from abroad.

Rahim urged regulators to fast-track approval timelines, eliminate double taxation burdens, and evaluate expanding companies on independent performance merits rather than rigid sector-wide averages.

The benchmark index of the Dhaka Stock Exchange (DSE) slipped below the 5,500-mark this week as investors continued selling amid persistent domestic economic headwinds and concerns over weak corporate earnings.

Market operators said investors remained cautious in the ongoing earnings season, while lingering economic challenges kept them on the defensive and clouded prospects for a sustainable near-term recovery.

The latest fuel-price hike has emerged as a fresh concern for the stock market, with higher transport, production and distribution costs threatening to squeeze corporate profit margins.

"The market was already under pressure, while the latest fuel-price hike has emerged as a major concern because of its potential impact on corporate earnings," said a stockbroker.

Higher fuel costs could slow earnings growth for many listed companies in the coming quarters, he said.

The concern was compounded by Bangladesh Bank's decision to keep its policy rate unchanged at 9.5 per cent, reinforcing expectations that borrowing costs will remain elevated for some time.

A prolonged tight monetary policy could keep corporate financing costs high and limit the scope for an investment-led recovery. It could also make fixed-income instruments more attractive to risk-averse investors than equities.

"Most investors are adopting a wait-and-see approach in the absence of strong positive triggers, while persistent domestic economic challenges continue to weigh on risk appetite," said the stockbroker.

Another leading broker said investors were not seeing enough positive catalysts to take fresh positions aggressively. They were instead reassessing their portfolios and shifting towards stocks with relatively stronger fundamentals or those that had undergone significant corrections, he added.

The market started the week on a downbeat note as investors remained concerned about weaker earnings from June-closing companies and reshuffled their equity exposure accordingly.

Selling pressure intensified in the following sessions, triggering broad-based declines as investors remained sceptical about the prospects of a sustainable near-term recovery.

The market, however, staged a modest rebound in the final two sessions as bargain hunters picked up recently corrected stocks at relatively attractive prices. The recovery was not strong enough to recoup the earlier losses, leaving the broader market subdued.

Of the five trading sessions, the first three closed lower, while the final two edged higher.

The benchmark DSEX index lost 56 points, or 1.01 per cent, over the week to close at 5,475. It has shed 102 points over the past two consecutive weeks.

The DS30 index, comprising blue-chip shares, however, rose just 2 points to 2,105, while the Shariah-based DSES index lost 13 points to 1,087.

EBL Securities, in its weekly market analysis, said the market extended its losing streak as selling pressure intensified during the week, triggering broad-based declines amid scepticism over the prospects of a sustainable near-term recovery.

The market staged a modest rebound towards the end of the week as opportunistic bargain hunters accumulated recently corrected scrips, although the recovery remained insufficient to recoup the losses accumulated earlier in the week, it said.

Selective large-cap stocks, including Islami Bank, United Commercial Bank, Beximco Pharma, Walton Hi-Tech Industries and Square Pharma, together contributed more than 19 points to the weekly decline in the DSEX.

Trading activity also weakened during the week. Total turnover on the DSE stood at Tk 37.82 billion, compared with Tk 35.30 billion in the previous week, while average daily turnover declined more than 21 per cent to Tk 5.56 billion from Tk 7.06 billion in the week before.

The textile sector dominated turnover, accounting for 29.5 per cent of total trading activity. General insurance followed with 10.9 per cent, while pharmaceuticals accounted for 10.5 per cent.

Market breadth remained firmly negative, with 290 issues declining against 81 advancing, while 14 remained unchanged.

Most sectors closed in the red. Among the major sectors, mutual funds recorded the steepest decline of 6.4 per cent following recent sharp gains. Pharmaceuticals, non-bank financial institutions, engineering and banking sectors also declined.

Saiham Textile emerged as the week's most-traded stock, with shares worth Tk 1.30 billion changing hands. Paramount Textile, Evince Textile, BRAC Bank and IPDC Finance followed in turnover.

The Chittagong Stock Exchange (CSE) also ended the week lower. Its All Share Price Index (CASPI) shed 171 points to close at 14,660, while the Selective Categories Index (CSCX) lost 83 points to 9,017.

Bangladesh is set to conduct feasibility study on the long-stalled Teesta river-management project on its own to avoid any external meddling and get a better way of managing the cross-border water basin, officials said.

Since the proposed Teesta project is a geopolitically sensitive one, the Bangladesh government wants to conduct the feasibility study with its own funds for finding out viability and justification for the water-management project, they added.

"There some geopolitical issues involved in the Teesta river-management project. This time, the government itself wants to go for the feasibility," a senior official of the Ministry of Water Resources told The Financial Express.

Bangladesh Water Development Board (BWDB) has recently undertaken a Tk 233.40-million project for feasibility study and sent to the Planning Commission (PC) for approval.

"We have undertaken the feasibility-study project before going to develop the water-management system and river-restoration programme in the Teesta basin," said a senior BWDB official.

The proposed project for development of the river waters will cover five northern districts--Nilphamari, Lalmonirhat, Rangpur, Kurigram and Gaibandha.

Bangladesh has a stretch of 120-km water flow out of the total 315 kilometres in the Bangladesh-India cross-border Teesta River. The river originated in Sikkim, India.

The project is among the most closely watched infrastructure initiatives in the country, and it has drawn interest from major regional and global powers.

The past interim government last year sent a Preliminary Development Project Proposal (PDPP) to Chinese seeking necessary funds for the 1st phase of the "Teesta River Comprehensive Management and Restoration Project (TRCMRP)".

The government wanted to start project works in January next and complete the first phase within four years. It ultimately didn't proceed and the current BNP-led government now prepared the feasibility-study project for a better start-off.

Meanwhile, during Prime Minister Tarique Rahman's visit to China in June last, the two countries advanced cooperation on the Teesta project, including a new feasibility-study effort.

Besides, nearly a decade ago in September 2016, a memorandum of understanding (MoU) was signed between BWDB and China's state-owned Power Construction Corporation (Power China). But that project didn't advance either due to "shifting geopolitical circumstances".

Water resources ministry officials have said the fresh study would be crucial to taking the plan toward implementation, and that it would determine the precise locations and scope of the proposed works.

They stress that this is not the end of the planning stage. Environmental-impact assessment, final design, government approval, financing and field-level implementation would have to be done after the feasibility study.

According to the feasibility-study project proposal, the BWDB would conduct the study between October 2026 and March 2028.

Under the component-1 of the study project, the Board will analyse river erosion, flood, sedimentation and water-scarcity problem, and will develop "adaptive, integrated and sustainable plan".

In the componenent-2, the water development board will develop high-quality and scaled physical model representing the Teesta River focusing area under realistic hydrodynamics and sediment-transport condition, and prepare detailed data-sheet to support calibration, validation and performance evaluation of the models.

The Teesta originates in the Himalayas, flows through Sikkim and West Bengal and enters northern Bangladesh before falling into the Jamuna River.

Bangladesh's section of the river supports irrigation, agriculture, fisheries and the livelihoods of communities in the Rangpur region.

The proposed TRCMRP aims to manage the river as a basin-wide infrastructure and restoration project, with several objectives like reducing riverbank erosion and monsoon flooding, dredging sediment and improving river-channel management, storing and managing water to help address dry-season shortages.

Also, the project aims to reclaim land for agriculture and other economic activities; improve embankments, transport links and river access, restore the river ecosystem, and support communities along its banks.

The Teesta plan comes as the government commits heavily to water infrastructure. It recently approved the first phase of the Padma Barrage project, worth over Tk 330 billion.

Bangladesh and India have negotiated a proposed interim water-sharing agreement for years. A draft was finalised in 2011, but it was not signed. India's federal and state-level political considerations, including the position of West Bengal, have been major obstacles to reaching agreement.

In their September 2022 joint statement, the two countries reiterated the need to work towards a Teesta water-sharing agreement. India's official position has also referred to reaching an equitable agreement acceptable to all stakeholders.

The central issue is seasonal water availability. Bangladesh needs sufficient dry-season flow for irrigation and livelihoods, while farmers and water users in India's West Bengal also depend on the river.

The bearish trend in Bangladesh's stock market continued last week, with average daily turnover on the Dhaka Stock Exchange (DSE) falling 21% and its benchmark index declining 1.01% over five trading sessions.

The DSEX lost 56.07 points, closing at 5,475.58 points. Average daily turnover fell to Tk556 crore, while market capitalisation declined 0.25% to Tk6.84 lakh crore.

The market began the week unfavourably, as the DSEX experienced declines for three consecutive sessions before managing a recovery in the final two days. However, the late-week gains were insufficient to offset the earlier losses.

The index fell 0.89% on Sunday, 0.68% on Monday and 0.37% on Tuesday before gaining 0.72% on Wednesday and 0.21% on Thursday.

The blue-chip DS30 index edged up 2.13 points, or 0.10%, to 2,105.68 points. The Shariah-based DSES index fell 13.28 points, or 1.21%, to 1,086.97 points, while the large-cap CDSET index advanced 5.22 points, or 0.47%, to 1,108.48 points.

Market breadth remained heavily negative. Of the 385 stocks traded on the DSE, 290 declined, 81 advanced and 14 remained unchanged, meaning roughly three-fourths of the traded stocks ended the week lower.

Islami Bank Bangladesh, United Commercial Bank, Beximco Pharmaceuticals, Walton Hi-Tech Industries and Square Pharmaceuticals were among the major contributors to the DSEX's decline.

Mutual funds recorded the steepest sectoral fall, dropping 6.60% over the week. General insurance stocks declined 5.16%, non-bank financial institutions (NBFIs) fell 0.78% and life insurance stocks lost 0.33%. Bank stocks bucked the trend, edging up 0.04%.

Among large-cap non-financial sectors, pharmaceuticals recorded the biggest decline, falling 1.05%. Food and allied stocks slipped 0.19%, while engineering stocks lost 0.05%. Telecommunication stocks gained 0.27%, and fuel and power advanced 0.15%.

Textile stocks accounted for 32% of total DSE turnover, making the sector the largest contributor to trading activity. Pharmaceuticals accounted for 9.8%, followed by general insurance at 9.5%. Saiham Textile, Paramount Textile and Evince Textile were the most actively traded stocks during the week.

Apex Foods led the gainers, with its share price rising 26.66%, followed by Bangladesh Lamps at 17.10% and Aziz Pipes at 12.96%. Phoenix Finance First Mutual Fund was the worst performer, plunging 22.73%. Silva Pharmaceuticals fell 16.80%, while MBL First Mutual Fund declined 16.67%.

The Chittagong Stock Exchange (CSE) also recorded losses. Its All Share Price Index (CASPI) fell 1.15% to 14,661 points, while the Selective Categories' Index (CSCX) declined 0.92% to 9,017 points.

Despite the weekly setback, the DSE's major indices remained in positive territory year to date. The DSEX gained 12.54%, the DS30 rose 13.60%, the DSES advanced 8.62% and the CDSET increased 10.32%.

In its weekly market review, EBL Securities said the ailing capital market had extended its recovery for a second consecutive session, offering some respite from the recent downturn as bargain hunters returned to accumulate beaten-down stocks at increasingly attractive prices.

The market remained volatile, with trading reflecting active participation from both buyers and sellers. Stronger buying helped the market close in positive territory, although broader investor sentiment remained subdued amid expectations of lacklustre corporate earnings, the review said.

Bangladesh is set to seek US$1.0 billion in budget support from Japan during Prime Minister Tarique Rahman's tour later this month.

Officials have said the total sum will be sought in two instalments--$500 million in the current fiscal year and as much in the next year.

The prime minister is expected to undertake a 4-day Japan tour on October 26 for talks aimed at advancing bilateral cooperation, particularly in fields of trade, investment and economy.

The country received some $3.11 billion in budget support from the development partners in the fiscal year 2025-26 to tackle the economic shocks stemming from the prolonged conflicts in the Middle East.

Bulk of the money went for financing higher import costs of fuel oils, liquefied natural gas (LNG) and food items in particular.

Most of the amount came from the World Bank, the Asian Development Bank (ADB), Japan International Cooperation Agency (JICA) and the Asian Infrastructure Investment Bank (AIIB).

In FY 2024-25, Bangladesh had received some $3.0 billion in budget -support credits from the development partners.

However, according to Finance Division officials, the country is yet to receive any budget-support credit during the last three months of the current fiscal year.

Final negotiation is now set to begin to secure some $100 million from the OPEC Fund for International Development (OFID) as budget support that the government sought from the agency last year to cushion shocks from energy crisis. In FY'25, Bangladesh got $110 million from OFIDF as budget support.

According to officials concerned, presently no discussion is ongoing with the Japan International Cooperation Agency or JICA for any budget-support credit. In the last fiscal year, Bangladesh got $316 million from JICA and $414 million in FY'25.

Thus, the budget credit will be sought from JICA to manage higher spending for sourcing fuel oils and liquefied natural gas as their prices mounted due to conflict in the Middle East.

At present, initial discussion is going on with the Asian Development Bank to secure a number of budget-support credits but those may not be finalised before next March, officials say.

Bangladesh's economy began facing severe crisis since early 2022 when Russia invaded Ukraine that caused huge disturbance to the global economy, pushing up inflation significantly across the world.

The price hike of key commodities globally and fall of remittance inflows and export earnings had lowered the foreign-exchange reserves, forcing the government to take severe austerity measures.

To tackle the crises the government was forced to seek financial support from the International Monetary Fund (IMF) to support its dwindling economy. Subsequently, the IMF in January 2023 approved $4.7-billion loan for Bangladesh.

The Middle East conflicts early this year further pushed up fuel-oil and LNG prices following production and transportation disruptions, making the government spend millions as subsidy.

The subsidy spending is growing over the years, raising the operating expenditure of the government. So the government is looking for higher budget-support funds, to tackle the energy-price shock.

Dr Zahid Hussain, a former lead economist at the World Bank's Dhaka office, earlier told The Financial Express getting budget-support credit from development partners in many aspects depends on government's comfort position with the IMF.

"We need to cut budgetary spending as much as possible to face the crisis," he said, adding that containing spending will help lower import and thus the requirement of foreign currency will lessen.

He has suggested maintaining exchange-rate flexibility and ensuring that no gap remains between domestic and international energy prices.

Solar power can reduce Bangladesh's dependence on imported fuels, save valuable foreign currency and strengthen the country's energy independence, Finance and Planning Minister Amir Khosru Mahmud Chowdhury has said.

He was speaking as chief guest at the unveiling of the Walton Solar Ecosystem at Walton Corporate Office in Dhaka today (10 October).

"Solar power is an environmentally friendly source of electricity. What Walton is doing with solar technology is something that is expected to expand across Bangladesh. Over the next one or two years, the country is expected to generate a substantial amount of electricity from solar energy. This will help meet people's electricity needs at lower costs," the minister said.

"Solar energy can be used not only for lighting but also to operate refrigerators, air conditioners, washing machines, ovens and a wide range of other electronic appliances. We hope people across the country will increasingly adopt solar energy solutions," he added.

After the inauguration, the minister toured an exhibition of solar panels, cables, energy storage inverters and batteries, hybrid refrigerators, air conditioners and smart televisions, as well as solar-powered washing machines, cookers, ovens, BLDC fans and LED lights.

The solar ecosystem combines solar generation, energy storage, supply to the national grid and the operation of household appliances. Walton has set up rooftop and floating solar projects at its factories with a combined capacity of 32 megawatts (MW), which the company says matches the electricity demand of a large district town.

Most of the power is used in Walton's own manufacturing, which helps cut energy costs. The company also supplies about 1,150 megawatt-hours (MWh) of solar electricity to the national grid annually through net metering.

Officials said Walton's hybrid air conditioners, refrigerators and smart televisions can run directly on solar power in sufficient sunlight, without battery storage. When solar output falls short, the system automatically draws the difference from the national grid.

Walton Hi-Tech Industries PLC Chairman S M Shamsul Alam said the initiative would help customers reduce electricity bills, expand renewable energy use and lower carbon emissions.

Vice-Chairman SM Ashraful Alam said it would create new business opportunities and strengthen the company's financial position, creating long-term value for capital market investors.

Managing Director SM Mahbubul Alam said Walton's ambition goes beyond "Made in Bangladesh". "We want to innovate and develop advanced technologies in Bangladesh and demonstrate the country's technological capabilities in the global market," he said.

Directors SM Rezaul Alam, SM Monjurul Alam Ovee and Tahmina Afrose Tanna were also present.

Bangladesh's overall economic activity slipped into slight contraction in September as manufacturing, construction and services weakened, pushing the country's Purchasing Managers' Index (PMI) down 1.3 points month on month to 48.6, while agriculture remained resilient.

The decline reflected persistent weakness in manufacturing and a return to contraction in construction, while services remained marginally in contraction. Agriculture continued to expand.

The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, and Policy Exchange Bangladesh (PEB) released the Bangladesh PMI report on Thursday.

The PMI is a pioneering initiative aimed at providing timely and accurate insights into the country's economic health to help businesses, investors and policymakers make informed decisions.

It was developed by MCCI and Policy Exchange, with support from the UK Government and technical support from the Singapore Institute of Purchasing & Materials Management (SIPMM).

Dr M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh, said, "The September PMI shows that Bangladesh's economic dynamism remains under pressure, as weakness in manufacturing, construction and services weighed on overall performance."

"Agriculture's continued expansion provides resilience, while slightly positive expectations across all sectors offer a basis for recovery. Strengthening domestic and export demand, ensuring reliable energy supply, easing financing constraints and containing cost pressures will be important to restore momentum," he added.

The agriculture sector recorded its 13th consecutive month of expansion, although the index declined by 1.3 points to 55.2.

New orders, new export orders, output, stocks of input purchases and finished goods, and imports continued to contract at a faster rate.

Employment reverted to marginal expansion, while input prices continued to rise. Order backlogs recorded a strong contraction, while supplier delivery times recorded slower expansion, it said.

The manufacturing sector declined by 2.6 points to 44.8, recording contraction.

The construction sector returned to contraction after expanding in August, declining by 3.8 points to 48.5. New business and construction activity contracted, while employment remained unchanged. Input costs continued to expand strongly, but at a slightly slower rate. Order backlogs reverted to expansion.

The services sector recorded a second consecutive month of marginal contraction, declining by 0.2 points to 49.0. New business and business activity reverted to contraction, while employment experienced slower contraction. Input costs expanded strongly, while order backlogs remained in contraction.

Respondent feedback for September reflected a cautious and mixed outlook for future business conditions.

Some firms expected activity to improve in the coming months, supported by confirmed orders, reliable buyers and the prospect of stronger seasonal demand during the approaching winter and peak business season.

However, many respondents remained concerned about repeated fuel and oil price increases, rising input and operating costs, weak consumer purchasing power, electricity and gas shortages, and limited access to bank financing.

Several firms also noted that prevailing economic uncertainty made it difficult to plan ahead, with some anticipating further deterioration if fuel prices and other cost pressures continue to rise. Overall, the feedback indicates that business confidence remains cautious. Future prospects will depend largely on stronger domestic demand, reliable energy supply, improved access to finance and a reduction in cost pressures.

Looking ahead, the Future Business Index indicates expansion across all four sectors, reflecting cautious optimism about business conditions.

Chattogram Custom House's revenue collection rose nearly 11% year-on-year in the first quarter of the current fiscal year, but the customs station still fell Tk9,949 crore short of its revenue target as September imports and assessable values declined.

The customs house collected Tk22,083 crore in July-September of FY27, up from Tk19,902 crore a year earlier, according to data from the Asycuda World system. However, the collection was 31% below the quarterly target of Tk32,032 crore.

The shortfall came as total import volume through the customs house declined 4.1% year-on-year in September, while the assessable value of imports fell 2.98%.

Sharif Al Amin, assistant commissioner and spokesperson for Chattogram Customs House, said revenue collection largely depends on import volume. However, the quarter's growth came largely from imports of goods with higher import duties.

"Despite the decline in import volume in September, revenue grew substantially in the first quarter as imports of high-value goods increased," he said.

On the gap against the target, Al Amin said the customs house remained behind its target in the first quarter but expected to recover the shortfall in the coming months.

Import volume and value fall in September

In September, customs handled 90.84 lakh tonnes of imports, down from 94.73 lakh tonnes a year earlier, while the assessable value fell to Tk48,642 crore from Tk50,136 crore.

The decline was concentrated in major duty categories. Imports under the 0% duty category fell by 1.44 lakh tonnes, while their assessable value dropped 9.26% to Tk21,694 crore.

The 15% and 25% duty categories also recorded lower import values, with assessable values declining by Tk513 crore and Tk695 crore respectively.

The 5% duty category presents a more striking picture. Import volume rose 1.24%, but its assessable value plunged 35.53% to Tk4,174 crore.

This suggests that the composition of imports within the category or international commodity prices had a significant effect on the customs valuation.

The 10% category showed an opposite trend. Its import volume declined marginally by 5,963 tonnes, but the assessable value increased by Tk469 crore, or 9.90%, to Tk5211 crore.

25% duty slab remains biggest revenue source

Chattogram Customs collected Tk7,581 crore in September, up 8.31% year-on-year from Tk7,000 crore. But the collection was 27.90%, below the Tk10,502 crore monthly target.

The 25% duty category remained the largest source of revenue for Chattogram Customs in September, but collections from the slab fell 21% year-on-year to Tk2,033 crore.

The decline in the highest-duty category was particularly significant because of its large contribution to total customs revenue.

Revenue from the 5% and 15% duty categories also declined, falling 28.32% to Tk873.40 crore and 21.85% to Tk590 crore, respectively. Collections from the 1% category plunged 79.76% to Tk48.50 crore.

The declines were partly offset by stronger collections from other slabs. Revenue from the 3% category surged 241%, while collections from the 10% and 0% categories rose 8.72% to Tk1,336 crore and 9.39% to Tk804 crore, respectively.

Quarterly trade activity expands

The broader first-quarter picture was stronger, with total import volume rising 3.63% to 2.50 crore tonnes and assessable value increasing 9.26% to Tk1,46,801.56 crore.

The increase in trade activity helped drive 10.96% growth in customs revenue, although performance varied across duty categories.

The 0% category remained the largest by import volume, rising 10% to 1.13 crore tonnes, while its assessable value increased 8% to Tk66,271 crore.

The 3% category recorded the sharpest expansion, with import volume more than tripling and assessable value surging 394% to Tk6,672 crore.

In contrast, import volume under the 1% category fell 60%, while the 5% category saw a 1.64% decline in volume and a 26% drop in assessable value.

A new International Monetary Fund (IMF) lending programme for Bangladesh is set to be bound by strings like introducing excise duty on fuel and establishing credible estimates of banks' undercapitalisation.

Officials have said preliminary discussions between the IMF and the Bangladesh government have identified several new conditions for the proposed US$4.5-billion loan programme spanning three years.

A delegation led by Finance Minister Amir Khosru Mahmud Chowdhury will attend the seven-day IMF-World Bank annual meetings beginning Monday in Bangkok, the capital of Thailand, when a decisive discussion is likely to take place on the sidelines.

The proposed conditionalities were recently shared with the Ministry of Finance, following several virtual meetings based on the IMF staff's visit in July, its January Article IV staff report and discussions during the spring meetings.

Detailed discussions on the new loan programme will be held with IMF representatives in Bangkok. Senior officials from the Finance Division, Financial Institutions Division, Bangladesh Bank and the National Board of Revenue (NBR) will join the meetings.

Officials familiar with the developments and involved in the process of reviewing observations from the last scoping missions in July said the IMF was serious about conducting a system-wide assessment of banks and preparing bank-specific resolution plans.

The multilateral lender has asked Bangladesh not to rely primarily on the recovery of non-performing loans (NPLs) as a source of funding for bank resolution.

It has also sought clarification on the scope and modalities of fiscal support and burden-sharing, subsidy reductions, and the phased withdrawal of all tax exemptions.

Bangladesh needs to provide a realistic, time-bound implementation plan for the reforms recommended by the IMF, the officials said.

A major emphasis under the proposed credit programme is on conducting a time-bound Asset Quality Review (AQR) of banks, they added.

The IMF has sought AQR findings as the primary basis for determining recapitalisation needs and bank-resolution costs.

Its staff has requested Bangladesh to complete a comprehensive triage of all banks and share the results with the Fund.

The IMF has proposed classifying banks into three categories based on their viability: viable banks without solvency concerns, viable but undercapitalised banks, and non-viable or insolvent banks.

For all weak and non-viable banks, the IMF has sought bank-specific resolution strategies based on the least-cost principle. These would determine the appropriate allocation of losses, recapitalisation needs, fiscal -support requirements and implementation timelines for each bank.

It has also sought a detailed assessment of merged banks, including how they will restore capital adequacy, absorb losses and ultimately eliminate their reliance on central-bank support.

On fiscal measures, the IMF's recent technical assistance (TA) recommendations include overhauling the existing tax system to broaden the tax base, modernising excise duties on tobacco and introducing excise duty on fuel.

Similar to the previous loan programme, which the present government decided not to continue, the IMF has recommended repealing statutory regulatory orders (SROs) providing tax and VAT exemptions, market-based exchange rate, increasing tax-to-GDP ratio and introducing a standard 15-percent VAT rate.

The IMF has also reiterated the need to continue the automatic fuel-pricing mechanism, cut fertiliser subsidies and reduce excessive reliance on withholding taxes for revenue mobilisation.

Earlier, on January 30, 2023, the IMF approved a $4.7-billion loan arrangement for Bangladesh. The then Awami League government had sought the assistance through a letter sent in July 2022.

Of the seven instalments under that arrangement, $3.64 billion had been disbursed in five instalments. During the interim government, the size of the loan programme was increased by $800 million to $5.5 billion in June 2025.

However, the current government was not interested in continuing with the programme because of changing economic challenges and stringent conditions. It informed the IMF of its position during the IMF-World Bank spring meetings in April this year.

On June 3, the government formally sent a letter seeking a new loan programme. The IMF subsequently welcomed the move in a press release.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, told the FE that the government had not continued the automatic fuel-pricing mechanism and other reform measures recommended by the IMF.

He thinks the conditionalities under the new programme would remain largely similar, focusing on revenue mobilisation and banking-sector reforms.

*Regarding energy subsidies, Bangladesh might be able to convince the IMF to consider the country's current circumstances," he said, adding that banking-sector reform would be the main point of discussion.

He has noted that the AQR process had made little progress and should be conducted by reputed audit firms.

Under the previous lending package, Bangladesh was supposed to receive the full $5.5 billion in instalments by 2027. The IMF had also set deadlines for completing specific reforms as conditions for releasing the instalments. However, many of the reforms missed completion timelines.

The country's gross domestic product or GDP growth accelerated to 4.6 per cent in the fourth quarter of the fiscal year 2025-26, helped by stronger industrial and services activity, according to data released by the Bangladesh Bureau of Statistics (BBS) on Wednesday.

The quarterly growth rate, measured at constant prices, was more than 2.55 percentage points higher than the corresponding quarter a year earlier, showing a broad-based improvement in economic activity towards the end of the fiscal year which many believe happened due to peaceful political atmosphere.

Despite the stronger final-quarter performance, the economy's average real GDP growth for four quarters stood at 3.68 per cent in the fiscal year 2025-26, reflecting the weaker pace of activity during much of the year.

At market prices, GDP during the April-June quarter of fiscal year 2025-26 was estimated at Tk 16,117 billion, while GDP at constant or real prices stood at about Tk 9,222 billion, the BBS data showed.

The performance was uneven across the major sectors of the economy during the fourth quarter.

Agriculture, which remains an important source of employment and rural income, recorded a 1.73 per cent contraction during the quarter, compared with growth of 3.19 per cent in the same period a year earlier.

The sharp deterioration indicates continued weakness in agricultural output and its contribution to overall economic expansion.

The services sector, which accounts for more than half of the country's economic output, performed considerably better.

Growth in services reached 4.28 per cent, an increase of 2.02 percentage points from the corresponding period of the previous fiscal year.

Industry was the strongest-performing major sector in the quarter under review.

Industrial output expanded by 6.52 per cent in the fourth quarter ending June 2026, up by about 5.6 percentage points from the same quarter of fiscal 2024-25.

The divergence between agriculture and the other two major sectors suggests that the late-year recovery was driven mainly by industrial production and services rather than by a broad-based rebound across the economy.

The country's industrial sector recorded a significant increase in growth in the fourth quarter of FY2025–26, while growth in the agriculture sector declined and the services sector also slowed compared with the previous year.

At constant prices, the agriculture sector grew 1.73% year-on-year in the fourth quarter of the 2025–26 fiscal year.

The sector had recorded 3.19% growth in the same quarter of the previous fiscal, meaning its growth declined by 1.46 percentage points year-on-year in the fourth quarter.

In the first three quarters of FY2024–25, agriculture sector growth stood at negative 0.12%, 1.90% and 4.61%, respectively. In contrast, this sector grew 2.11%, 3.68% and 1.74% in the first three quarters of FY2025–26, respectively.

Meanwhile, the industrial sector posted a sharp rebound in the fourth quarter. At constant prices, industrial growth jumped to 6.52% in Q4 of FY2025–26, up from just 0.92% in the same quarter a year earlier.

Industrial growth, however, remained volatile in the first three quarters of the fiscal year. The sector grew 4.80%, 5.78% and 3.33% in the first three quarters of FY2024–25, respectively, compared with 6.82%, 1.27% and negative 0.28% in the corresponding quarters of FY2025–26.

The services sector, too, posted stronger growth in the fourth quarter, rising to 4.28% in FY2025–26 from 2.26% in the same quarter a year earlier.

However, services sector growth lost momentum in the first three quarters of FY2025–26. The sector grew 4.49%, 3.48% and 7.32% in the corresponding quarters of FY2024–25, but growth slipped to 4.51%, 4.45% and 3.52% in FY2025–26.

Overall, the fourth quarter saw stronger growth in industry and services, while agriculture lost ground from a year earlier, underscoring a sharp divergence in sectoral performance across the economy.

Biman signs Airbus deal to buy 10 aircraft Biman Bangladesh Airlines has signed an agreement with the European aircraft manufacturer Airbus for the acquisition of 10 new aircraft as the national flag carrier moves ahead with a major fleet expansion programme.

The latest Airbus package is expected to be worth more than $2 billion, according to sources concerned.

The signing ceremony, titled "Spreading Our Wings Together," was held at a city hotel at 6:30pm today (7 October).
Airbus South Asia President Jürgen Westermeier, and Biman Chairman Rumee A Hossain signed the deal.

The signed package comprises four Airbus A350-900 widebody aircraft and six A321neo narrowbody jets, which are intended to support Biman's future long-haul and regional network expansion.

The aircraft are expected to be delivered from 2031, though Civil Aviation and Tourism Minister M Rashiduzzaman Millat said Biman has requested Airbus to deliver at least one aircraft earlier, possibly by 2028.

"Today's initiative is not merely about acquiring aircraft; it is part of the broader goal outlined in the government's election manifesto to transform Bangladesh into a modern aviation hub.

"To achieve this goal, Biman Bangladesh Airlines' fleet, route network and operational capabilities will be further strengthened. At the same time, the airline will move forward with the objective of establishing Biman as a world-class legacy airline," Civil Aviation and Tourism Minister M Rashiduzzaman Millat said.

The signing marked the conclusion of months of evaluation and negotiations over Biman's Airbus procurement, coming shortly after the national flag carrier expanded its Boeing acquisition programme to 25 aircraft.

The signing ceremony brought together representatives of the government, Biman and Airbus, with Civil Aviation and Tourism Minister M Rashiduzzaman Millat, State Minister for Foreign Affairs Humaiun Kobir, and Invest Bangladesh Executive Chairman Ashik Chowdhury speaking at the event.

Ambassadors of the European Union, France, UK, Spain and Germany also spoke at the ceremony.

"We regard this agreement as a strategic step in Bangladesh's growing commercial and investment relations with Europe -- relations built on international competitiveness, innovation and reliability. At the same time, it represents a strategic decision in favour of economic modernisation, safety and value for money," European Union Ambassador Michael Miller said.

Rumee A Hossain said, "The Airbus inclusion is part of our long term vision to build a sustainable mixed fleet model."

"It is a major and reasonable ambition as Bangladesh handles over 1.5 crore air passengers each year," he added.

He said that widebody aircraft will fly to the Middle East, Europe, North American and Australian routes while narrowbodies will focus on regional and medium Asian hubs.

Biman MD and CEO Kaizer Sohel Ahmed delivered a welcome speech.

The discussions over the purchase of 10 Airbus aircraft date back to the Sheikh Hasina regime.

After a meeting with then-prime minister Sheikh Hasina in Dhaka in September 2023, French President Emmanuel Macron publicly thanked Bangladesh for its commitment to acquiring 10 aircraft from Airbus.

In the meantime, Airbus has intensified its diplomatic and commercial engagement, while several European ambassadors have repeatedly raised the issue during EU-Bangladesh bilateral negotiations.

Biman's 35-aircraft expansion deal

The Airbus deal, together with two Boeing agreements, will take Biman's planned new-aircraft pipeline to 35 aircraft, comprising 19 widebody and 16 narrowbody jets.

Biman's latest Boeing agreement was signed in New York on 23 September under a "Right to Purchase Additional Aircraft" provision included in the 14-aircraft purchase agreement signed on 30 April.

The supplementary agreement covers five Boeing 787-10 Dreamliner widebody aircraft and six Boeing 737-8 MAX narrowbody aircraft. The 11 aircraft will cost about $2.7 billion, with the price based on the same rate agreed under the April contract, the minister said.

The 30 April agreement covered the purchase of 14 Boeing aircraft worth $3.7 billion.

Together, the two Boeing agreements cover 25 aircraft -- 15 widebody jets, comprising two 787-9s and 13 787-10s, and 10 737-8 MAX narrowbody aircraft.

Under the contracts, the first Boeing aircraft is scheduled for delivery in November 2031 and the final aircraft by 2035.

The national carrier currently has 19 aircraft, mostly Boeing dominated. Through the Airbus deal, Biman now goes for a major mixed fleet operation.

Bangladesh's garment and textile industry must accelerate renewable-energy adoption and decarbonisation to protect export markets and ensure long-term competitiveness, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) leaders said at a conference today (7 October).

Industry representatives, global brands, energy and technology experts, and green-financing providers said the ongoing energy crisis has made the transition more urgent, while growing global sustainability requirements are making it necessary beyond the immediate crisis, reads a press release.

BKMEA President Mohammad Hatem urged manufacturers to integrate carbon reduction into factory planning and make use of emerging policy and financing opportunities to accelerate the transition.

"Carbon reduction needs to be part of every factory's planning. Government initiatives and financing opportunities are creating scope for renewable-energy expansion. We need to use these opportunities and work together to prepare our industry for the changes ahead," Hatem said.

He highlighted the potential for rooftop solar installations, financing initiatives from Bangladesh Bank and commercial banks, and BKMEA's efforts to simplify VAT and tax arrangements related to solar projects.

Hatem also called for stronger factory-level planning to prepare for Bangladesh's LDC graduation and evolving EU requirements, alongside greater coordination with government agencies over permissions and approvals.

The remarks came at the "Rapid Energy Transition Conference: Powering Security, Sustainability & Growth in Bangladesh RMG", jointly organised by BKMEA and Ethical Trading Initiative (ETI) Bangladesh.

The conference was attended by 71 participants, including 53 factory representatives and 10 BKMEA leaders, as well as brand representatives, industry experts, banks and renewable-energy service providers.

Eng Imran Kader Turjo, director of BKMEA and managing director of Southern Knitwear Ltd, warned that failing to keep pace with changing market expectations could jeopardise export relationships built over decades.

"It has taken us many years to establish Europe as a major export market. If we cannot meet its evolving requirements, developing another market of that scale will also take many years. What would happen to our garment and textile industry in the meantime?" he said.

Turjo said early action on decarbonisation and renewable energy could also give Bangladesh an advantage over competing sourcing countries.

"Global buyers want to source from Bangladesh. If we move ahead with decarbonisation and renewable energy early, we have an opportunity to get well ahead of competitors such as India and Pakistan," he said.

Other BKMEA leaders also stressed the need for preparation. M Ishfaq Ahsan, CIP, emphasised energy efficiency and shared responsibility with brands, while Mansoor Ahmed highlighted energy security and reducing gas waste.

Md Jamal Uddin Miah called for solar adoption to become part of factories' long-term business strategies, supported by qualified vendors and performance monitoring.

In his welcome remarks, Minhazul Hoque, director of BKMEA and director of Fatullah Dyeing & Calendaring Mills Ltd, urged manufacturers to assess where their businesses need to be over the next five to 10 years.

"Sustainability requirements are becoming issues of business competitiveness. Owners and top management need to be part of that preparation," he said.

Hoque also highlighted emerging requirements linked to Digital Product Passports and the Corporate Sustainability Due Diligence Directive (CSDDD), stressing the importance of credible environmental and carbon data.

Abil Bin Amin, executive director of ETI Bangladesh, said the current pressures also presented an opportunity to strengthen the industry.

"Gradually reducing fossil-fuel dependence and increasing renewable energy can become a business strength and a selling point for Bangladesh's RMG industry," he said.

Speakers said renewable energy and energy-efficiency measures could help address immediate energy supply and cost pressures while supporting the wider decarbonisation needed to remain competitive.

Md Nurul Aktar, director of Energypac Group, said renewable-energy investment should be accompanied by efficiency improvements and changes in workplace practices.

He proposed factory-level campaigns to switch off equipment and lighting during breaks and idle periods, supported by floor-level energy champions, daily targets and section-wise metering. Such measures could be combined with efficient machinery, rooftop solar and appropriately assessed battery storage, he said.

Munir Uddin Shamim, director-programme, evidence & learning at ETI Bangladesh, said the organisation had been promoting workplace-level energy efficiency and conservation practices since 2022.

"Workers can play a major role in identifying energy waste and making energy-saving practices part of everyday factory operations. Their participation can help translate efficiency goals into practical improvements and sustain those improvements over time," he said.

The conference featured two working sessions on the urgency of the energy transition and financing and technology pathways available to manufacturers.

In a keynote, ETI Bangladesh's Jannatul Ferdaus outlined the impact of the energy crisis on supply chains and workers' lives and livelihoods, while Priyong Sabastini examined industry signals and brand behaviour and said the renewable-energy transition and decarbonisation should be viewed as strategic tools for business resilience.

Sadia Rowshon Adhora of the Coastal Livelihood and Environmental Action Network (CLEAN) presented the environmental, social and economic benefits of solar power.

Factory, brand and financing perspectives were shared by Epyllion Group, NEXT Sourcing, Varner, City Bank and Greener Garments Initiative. Discussions highlighted management commitment, feasibility assessments, access to finance and continuous monitoring as key to successful implementation.

Participants raised concerns over financing delays, approval bottlenecks and gaps between projected and actual solar performance.

The conference recommended making decarbonisation and energy efficiency part of long-term business planning; accelerating green-finance approvals and disbursement through coordination among BKMEA, commercial banks and Bangladesh Bank; simplifying net-metering approvals; ensuring sound technical assessments and performance monitoring; exploring cluster-based renewable-energy arrangements for SME factories; and involving workers in energy-saving initiatives.

Closing the conference, Hoque called for financing barriers to be addressed and smaller manufacturers to be included in the transition.

"Renewable energy and decarbonisation are becoming necessary for the industry's long-term survival. Manufacturers cannot carry the responsibility alone," he said.

He urged factory representatives to take the discussions back to owners and management and turn them into practical investment and implementation plans.

GPH Ispat Limited, one of Bangladesh's leading steel producers, is facing severe financial pressure as an acute working capital shortage has disrupted factory operations, pushing its net revenue to a four-year low in fiscal 2025-26.

A sharp fall in production and difficulties procuring raw materials have weakened the company's market presence, while rising debt has further strained its balance sheet and debt-servicing capacity, according to the company and its audited financial report.

The company's net revenue fell 29% year-on-year to Tk3,940 crore in FY26 from Tk5,606 crore a year earlier. Revenue from MS rod sales fell 29% to Tk4,038 crore, while MS billet generated no revenue during the year.

Revenue from industrial gas, an ancillary product, fell 37% to Tk22.72 crore, while export earnings dropped 55% to just Tk8 crore.

Net profit plunged to Tk3.54 crore, leaving the company with a net profit margin of just 0.08%. The company mainly managed to remain profitable because of lower management expenses and income tax, according to the report.

A senior company official, speaking to The Business Standard on condition of anonymity, attributed the operational crisis to an escalating cash crunch.

The liquidity shortage has prevented GPH Ispat from opening letters of credit (LCs) to import sufficient scrap metal and other essential raw materials, the official said. As a result, its factories have been operating well below capacity, leaving key products such as MS rod and billet largely absent from the market.

With revenue falling sharply, the company is also under mounting pressure to meet regular debt instalments, the official added.

The financial strain follows heavy debt-financed expansion over the past decade. In 2016, GPH Ispat launched a major capacity expansion using Quantum Electric Arc Furnace and Winlink technologies, raising annual capacity to 10.50 lakh tonnes of MS billet and 7.90 lakh tonnes of MS rod and structural products.

Commercial production from the expanded facilities began in 2021, followed by the launch of specialised high-grade rebar in 2022. The expansion, however, was financed largely through commercial bank loans and capital market rights issues.

As borrowing costs rose amid sluggish sales, long-term loans increased 40.43% to Tk4,088 crore, taking total liabilities to Tk8,319 crore.

Major credit exposures include Pubali Bank at Tk559 crore, Trust Bank at Tk506 crore, United Commercial Bank at Tk436 crore, Dutch-Bangla Bank at Tk426 crore and NCC Bank at Tk284 crore. The company also has Tk705 crore in syndicated term loans and Tk601 crore in foreign currency loans.

The liquidity crisis has been compounded by a broader slowdown in Bangladesh's steel sector. The company's financial report says installed steelmaking capacity stands at 13–15 million tonnes a year, while effective demand has fallen sharply since FY24–FY25, reducing industry capacity utilisation to 30%–40%.

Weak construction activity, volatility in global scrap prices and foreign exchange restrictions have further worsened conditions. Although demand for high-quality steel remains relatively resilient, GPH Ispat's difficulty securing raw materials has limited its ability to capture market share.

To address the crisis, the company has adopted a two-pronged revival strategy involving debt restructuring and fresh capital. It is negotiating loan rescheduling with lenders to avoid default and has sought policy support from Bangladesh Bank, which is considering the matter.

GPH Ispat also plans to raise nearly Tk968 crore through a rights share issue, with most of the proceeds earmarked for repaying high-cost bank debt and strengthening its balance sheet, the senior company official said.

The government and the Asian Development Bank (ADB) today (7 October) signed loan agreements worth $275 million and a $2.72 million grant for projects to expand affordable housing finance and improve sustainable energy infrastructure in the Chittagong Hill Tracts.

Economic Relations Division (ERD) Secretary Md Shahriar Kader Siddiky and ADB Bangladesh Resident Mission Country Director Qingfeng Zhang signed the agreements on behalf of the government and ADB, respectively.

$100m for affordable housing

The government signed a $100 million loan agreement with ADB for the Inclusive Affordable Housing Finance Project, which will be implemented by Palli Karma-Sahayak Foundation (PKSF) under the Financial Institutions Division of the Ministry of Finance.

The project aims to economically and socially empower low- and middle-income families by improving access to housing. It will expand housing microfinance services for low- and middle-income borrowers while also supporting women's empowerment.

By increasing access to affordable and climate-resilient housing finance, the project is expected to contribute to poverty reduction, stronger social protection, improved living standards and inclusive and sustainable economic growth.

The loan is an ADB Ordinary Operations (Concessional) loan carrying 2% annual interest and repayable over 25 years, including a five-year grace period.

$175m loan, $2.72m grant for hill tracts

For the Sustainable Energy Development and Community Empowerment in the Chittagong Hill Tracts Project, the government signed a $175 million loan agreement and a $2.72 million grant agreement with ADB.

The project will be implemented by the Bangladesh Power Development Board (BPDB) under the Power Division of the Ministry of Power, Energy and Mineral Resources.

It aims to ensure a reliable electricity supply to remote and underserved communities in the Chittagong Hill Tracts by expanding and modernising the electricity distribution system, improving the climate resilience of power infrastructure and creating opportunities for electricity-dependent economic activities.

The $175 million concessional loan carries 2% annual interest and is repayable over 25 years, including a five-year grace period.

The $2.72 million grant will come from the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR), an externally financed fund administered by ADB.

ADB Executive Director Satya Srinivas Lolla attended the signing ceremony, along with senior officials from both sides.

To date, ADB has provided Bangladesh with $36.69 billion in loans and $636.52 million in grants. Its development assistance to Bangladesh mainly covers power and energy, local government, transport, education, agriculture, health, water resources, governance and financial sectors.

The DSE Brokers Association of Bangladesh (DBA) has urged Bangladesh Bank to extend banks' special fund for capital market investment by five years until the end of November 2031 and raise the fund size from Tk200 crore to Tk300 crore.

The association made the proposal in a letter to Bangladesh Bank Governor Md Mostaqur Rahman, signed by its president Saiful Islam.

Introduced in 2020 during the Covid-19 pandemic to boost capital market liquidity, the facility allowed each bank to create a Tk200 crore special fund with a five-year tenure. Bangladesh Bank later extended the facility, with its current tenure set to expire on 31 December 2026.
With the expiry approaching, the DBA sought an extension and an increase in the fund size, citing the market's liquidity shortage amid the current situation and Middle East tensions.

The association said the facility had supported institutional participation, market liquidity and stability, and investor confidence.

"The proposed enhancement and extension would provide continued institutional support, improve market liquidity and depth, strengthen investor confidence, and contribute to the sustainable development of Bangladesh's capital market," it said.

Under Bangladesh Bank's 2020 circular, banks and their subsidiaries could invest through the fund only in stocks that had paid at least a 10% stock or cash dividend, or both, in each of the previous three consecutive years and had at least 30% sponsor/director shareholding.

Following the extension, banks were required to submit a board-approved action plan to Bangladesh Bank within 30 days of the circular's issuance, outlining how they would gradually reduce their investment exposure under the special fund.

The central bank made timely implementation of the plan mandatory. Once the current tenure ends on 31 December 2026, remaining investments under the fund will be treated as part of the banks' capital market investment portfolios, on both solo and consolidated bases, in accordance with Section 26K of the Bank Companies Act 1991, according to the circular.

The Bangladesh Energy Regulatory Commission (BERC) has raised the price of Jet A-1 aviation fuel for both domestic and international flights by around 10.3% for October, continuing an upward trend in jet fuel prices.

For domestic flights, the price has been set at Tk182.71 per litre, up from Tk165.65 in September. This represents an increase of Tk17.06 per litre, or 10.3%, from the previous month.

For international flights operated by local and foreign airlines, the price has been fixed at $1.1882 per litre, including customs duties and VAT.

The September rate was $1.0770 per litre, meaning the international rate has increased by $0.1112 per litre, or around 10.3%.

The revised rates were determined based on the average published Platts rate for Jet A-1 between 5 September and 4 October, the US dollar exchange rate considered in Bangladesh Petroleum Corporation's (BPC) letter of credit settlement and other relevant cost factors, according to a BERC order issued today (7 October).

The commission said it reviewed international Jet A-1 prices, the exchange rate and related costs before finalising the October rates.

The revised prices will come into effect from midnight, according to the BERC order.

Jet fuel prices have now risen for the second consecutive month.

In September, BERC raised the domestic rate to Tk165.65 per litre from Tk159.52, while the international rate increased to $1.0770 from $1.0358 per litre.

Bangladesh's stock market rebounded today (7 October) after four consecutive sessions of losses, as bargain hunting in recently battered stocks helped the benchmark DSEX gain 38 points.

The DSEX rose 38.12 points, or 0.70%, to close at 5,463.35, recovering some of the roughly 125 points it lost over the previous four sessions.

The blue-chip DS30 gained 19.11 points to 2,096.24, while the DSE Shariah Index (DSES) rose 8.79 points to 1,196.67.

EBL Securities said in its daily market commentary that bargain hunting in recently corrected stocks provided some support, although broader investor sentiment remained subdued.

The market was volatile, with selective buying initially lifting the indices before renewed selling pressure emerged mid-session. Late-session buying, however, pushed the indices into positive territory, the brokerage said.

Trading activity also picked up, with turnover on the DSE rising 7% from the previous session to Tk604 crore.

Of 391 issues traded, 191 advanced, 134 declined and 66 remained unchanged.

Evince Textile led turnover, followed by Paramount Textile, BRAC Bank, Saiham Textile and Orion Infusion.

BSRM Steel was the top gainer, rising 9.96%, followed by Evince Textile at 9.52%, BSRM Limited at 7.86%, Saiham Textile at 6.69% and Al-Arafah Islami Bank at 6.66%.

Phoenix Finance First Mutual Fund was the biggest decliner, falling 9.49%. Exim Bank First Mutual Fund dropped 6.89%, Sunlife Insurance 6.30%, First Prime Finance Mutual Fund 6.15% and Prime Bank First ICB AMCL Mutual Fund 5.88%.

Textile stocks accounted for the largest share of turnover at 32%, followed by Pharma at 9.8% and General Insurance at 9.5%.

Among sectors, Jute gained 5%, Paper 2.8% and Engineering 2.2%. Mutual Fund fell 1.5%, Financial Institutions 0.9% and Services 0.4%.

The Chittagong Stock Exchange also closed higher, with the CSCX gaining 70 points to 9,009 and the broader CASPI rising 98 points to 14,655.

The rebound provided some relief after sustained selling pressure, but subdued sentiment and continued weakness in many stocks suggest the recovery remains fragile. Sustained buying interest will be needed to maintain the upward momentum.