Presuming that risk of over-indebtedness of Bangladesh economy rising gradually, the French Development Agency (AFD) starts assessing the country's sovereign risk and economic and financial vulnerabilities, officials said, pending its post-graduation assistance.

The development-financing agency of the European Union country says the risk of over-indebtedness in Bangladesh is increasing due mainly to higher debt servicing and dependence on domestic bank financing.

Also, the agency wants to assess the performance of the growth trajectory of the economy.

A monitoring mission of the AFD began Monday the four-day assessment in Dhaka with meetings with relevant top government officials, including Finance Division, Financial Institutions Division, Power Division, and Ministry of Environment, Forestry, and Climate Change.

The AFD team on the day had meetings with top officials from the Macroeconomic wing, SOE wing, Government Debt and Financial Asset wing, Management wing, and Planning, Development and Reform wing of the Finance Division.

A senior Finance Division official says the AFD conducts country-and sovereign-risk assessment of Bangladesh every four years.

The last country risk-analysis mission to Bangladesh took place in July 2021.

"The latest country assessment aims to find how the agency can provide financial support more effectively as the LDC graduation will bring significant changes in terms trade and economy of Bangladesh," he said.

Since 2012, the AFD has made commitment of 2.0 billion euros in loans and 47.2 million euros in grants for Bangladesh. Of the released amount, 41 per cent was invested in the water and sanitation sector while 22 per cent in power and energy sector.

The AFD predicts Bangladesh's public finance-deficit is fuelling the rise in the public-debt ratio, which could exceed 45 per cent of gross domestic product (GDP) in FY'28.

The domestic share, 54 per cent of total debt in FY'25, is largely financed by the banking system, which constitutes a major point of vulnerability given the ongoing banking crisis, it says, adding that interest expense exceeded 28 per cent of revenue in FY25, compared to 18.6 per cent on average in the 2010s.

The International Monetary Fund (IMF) now considers the risk of public over-indebtedness to be moderate, compared to previously rated low. "The risk of over-indebtedness is increasing, linked to higher debt service and dependence on domestic bank financing."

The AFD is conducting the assessment based on the analysis of the five pillars of the method developed by the Department of Public Economic and Political Diagnostics of AFD focusing social situation, growth, public finance, external position, and banking sector.

During the spot appraisal, the mission will gather information on the social background and analyse the progress achieved in poverty-and inequality reduction, review the growth performance in order to assess the prospects for growth, and focus on the budget balance and the capacity to finance the necessary infrastructure and the level and structure of public indebtedness.

Moreover, the mission will analyse the structure of the balance of payments and the financing means, and assess the quality of the banking sector and its ability to provide sufficient credit to meet the development needs of the private sector.

The AFD says Bangladesh's economy has slowed sharply during the last three years due to inflation, the fragility of the banking sector, and political uncertainties. The economic model, focused on textiles and migrant transfers, shows structural limits, including a lack of diversification.

The country is also highly vulnerable and exposed to climate change-induced risks with significant economic consequences.

"With government revenue averaging only 8.6 per cent of GDP in the 2010 decade, Bangladesh's fiscal burden is among the lowest in the world and limits fiscal space," it has said.

Taiwan’s Foxconn, the world’s largest contract electronics maker, reported on Monday a 47 percent jump in third-quarter revenue year-on-year that beat market estimates, fuelled by strong AI-related demand.

Revenue for the July-September quarter was T$3.03 trillion ($95.4 billion), well above an LSEG SmartEstimate of T$2.83 trillion that gives greater weight to forecasts from analysts who are more consistently accurate.

Strong AI demand led to robust revenue growth for its cloud and networking products division, while smart consumer electronics, which include iPhones, posted significant growth, the company said.

September revenue alone rose 38 percent year-on-year to T$1.16 trillion, a record for a single month and the first time it has surpassed T$1 trillion on a monthly basis.

AI-related operations are expected to continue growing in the fourth quarter, the company said.

Together with the traditional peak season for electronics products in the second half of the year, this should support overall performance in line with current market expectations, it said. But it added that it remains necessary to monitor the impact of a volatile global political and economic environment.

Foxconn, formally called Hon Hai Precision Industry, does not provide numerical forecasts. It will report full third-quarter earnings on November 12.

The company’s shares have gained 10 percent this year, underperforming a 72 percent rise for the Taiwan market. The stock closed up 1.2 percent on Monday ahead of the revenue data release. The benchmark index ended the day 2.6 percent higher.

Banks have sharply cut spending on corporate social responsibility (CSR) as financial difficulties have reduced the capacity of many lenders to contribute, while some have been simply unable to make any contribution amid losses.

In the January-June period of this year, the banking sector spent Tk 119 crore on CSR, down from Tk 615 crore in the same period of 2022, according to Bangladesh Bank (BB) data.
CSR spending by banks stood at Tk 571 crore in the first half of 2023, Tk 309 crore in 2024 and Tk 150 crore in the first half of 2025, according to BB data.

Mirza Elias Uddin Ahmed, managing director and CEO of Jamuna Bank, said many banks have seen their profits decline, while a good number of lenders have incurred losses. This may have contributed to the fall in CSR spending.

Elias said the banking sector is not performing well overall, and CSR spending has declined as a result.

In 2025, the banking sector recorded a net loss of Tk 136,000 crore, as a surge in bad loans wiped out income across much of the industry, according to a BB report.

Bankers attributed the downturn to a sharp rise in non-performing loans (NPLs), driven by years of lending irregularities, financial fraud and political interference in the sector.

A central bank official said many irregularities have taken place in CSR spending during the previous Awami League government.

“Money was withdrawn from this sector and disbursed at the direction of politically influential quarters, including the Prime Minister’s Relief and Welfare Fund,” he said. “Such practices have now declined. Besides, the financial condition of banks is also not good, which is why CSR spending has fallen.”

BB data showed that banks’ CSR spending in the January-June period of this year is also nearly 40 percent lower than in the previous six months. Banks spent Tk 197.85 crore on CSR in the July-December period of 2025.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, told The Daily Star that the capacity of many banks to spend on CSR has declined, while some are unable to make such expenditures because of losses.

“Besides, CSR spending was previously largely directed towards the Prime Minister’s Relief Fund, and initiatives centred around the Prime Minister’s Office, which is now non-existent,” added Mahbubur.

In the first half of this year, the health sector received Tk 34.66 crore, or 29.11 percent, of total CSR spending, while education received Tk 24.13 crore, or 20.27 percent. Environment and climate change mitigation and adaptation received Tk 11.72 crore, or 9.84 percent.

The remaining Tk 48.53 crore, or 40.77 percent, went to “other” areas, led by disaster management, which received Tk 34.34 crore, or 28.85 percent. This included contributions to the Prime Minister’s Relief Fund and winter blanket distribution.

Compared with the previous six months, spending on education fell 45.74 percent, health 39.74 percent and environment 59.99 percent, while spending on “other” areas rose 3.70 percent.

Japan wants Bangladesh to remove unnecessary regulatory hurdles, diversify its industrial base and create more room for foreign investment as the two countries prepare to deepen economic ties under their newly signed Economic Partnership Agreement (EPA).

Japanese Ambassador to Bangladesh Saida Shinichi made the call at the 21st annual general meeting (AGM) of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI) at Lakeshore Hotel in Dhaka on Sunday.

Saida said Bangladesh’s growing focus on attracting foreign direct investment was encouraging, but sustained investment would depend on a more transparent and predictable business environment.

He stressed the need to reduce red tape, develop upstream industries and diversify the country’s industrial base while creating more employment opportunities for its young population.

His remarks came as JBCCI, which now has 391 members, began a new two-year leadership term. Kazuiki Kataoka was elected president, replacing Tareq Rafi Bhuiyan, who completed his term.

The ambassador also pointed to the EPA, signed in February, as an important milestone in Bangladesh-Japan economic relations. He expressed hope that Japanese investment proposals currently in the pipeline would materialise in the coming years.

Saida also highlighted the importance of continued high-level engagement between Dhaka and Tokyo in supporting business and investment ties.

Outgoing president Tareq Rafi Bhuiyan said the EPA could open significant opportunities for both countries, but businesses would need to prepare for its implementation. He also called for a predictable investment climate and stronger business connectivity.

Secretary General Maria Howlader said JBCCI had expanded its membership significantly and remained engaged in policy advocacy, government consultations, investment promotion and business networking during the past year.

The new president, Kataoka, said his priorities would include highlighting Japan’s contribution to Bangladesh through trade, investment and infrastructure, while making greater use of the expertise within JBCCI’s nearly 400 member companies.

The chamber also plans to place greater emphasis on sector-specific business matching, investor issue resolution, business delegations to Japan and the participation of women entrepreneurs and young business leaders.

The AGM was attended by nearly 240 business representatives, diplomats, officials and media professionals.

Bangladesh received US$8.979 billion in workers’ remittances during July 1 to October 4 of the current fiscal year (FY2026-27), marking a 16.2 percent increase from US$7.726 billion received during the corresponding period of FY2025-26.

According to the latest data from Bangladesh Bank, the country received US$388 million in remittances during October 1-4, 2026, compared with US$141 million during the same period last year, registering a 175 percent year-on-year growth.

On October 4 alone, expatriate Bangladeshis sent home US$181 million, according to the central bank data.

The continued rise in remittance inflows is expected to support the country’s foreign exchange reserves and ease pressure on the balance of payments.

Once a fast-growing market for Bangladeshi ready-made garment exporters, shipments to Russia have been falling in recent years after Western sanctions over the Ukraine war cut Moscow off from international payment systems and disrupted shipping routes.

Before the Russia-Ukraine war began on February 24, 2022, exports to Russia were growing rapidly, driven mainly by strong demand for Bangladeshi garments, particularly sweaters and other knitwear.
Garments accounted for more than 95 percent of Bangladesh’s exports to the country. Local exporters hoped to raise annual apparel exports to Moscow to $1 billion before the sanctions jeopardised the market.

Bangladesh exported goods worth $665.31 million to Russia in fiscal year 2020-21, shortly before the war began, according to Export Promotion Bureau (EPB) data. Exports remained high at $638.30 million in fiscal year 2021-22, but began falling the following year and dropped to $257.26 million in fiscal year 2025-26.

Bangladesh’s garment exports to Russia started to grow faster after the Turkish government imposed a 17.5 percent safeguard duty on Bangladeshi apparel in 2011 to protect its domestic garment industry.

Before the duty was imposed, Bangladeshi manufacturers shipped large quantities of basic garments to Turkey. Turkish garment exporters then rebranded and re-exported those products to Russia.

The high safeguard duty prompted Bangladeshi exporters to reduce shipments to Turkey and send garments directly to Russia instead.

But garment manufacturers now face several problems in serving the Russian market. Many have significantly reduced their shipments as a result.

One of the biggest problems is receiving payments from Russian buyers. Several Russian banks and financial institutions were cut off from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the global interbank payment system, after the war began.

Exporters can also no longer ship goods directly to Russia. They have had to use alternative routes through countries such as Poland, Finland, Belarus and Germany, making shipments more complicated and expensive.

“Because of payment problems, I stopped exporting to Russia, although I used to export more than $1 million worth of garments to the country before the war,” said Rajiv Chowdhury, managing director of Young4ever Textiles, a local apparel exporter.

He said he faced major difficulties in receiving a $100,000 payment from a Russian buyer. After three years of negotiations, the buyer finally paid the amount through a third-party company in another country.

Despite the difficulties, Rajiv said the Russian market has strong potential for Bangladesh because demand for “Made in Bangladesh” garments remains high due to their competitive prices.

Bangladeshi manufacturers have been trying to ship goods to Russia through third countries and receive payments in third-country currencies. However, they said such arrangements carry significant risks, including the possibility of not receiving payments.

“For example, if a company ships goods to Russia and receives payment in Turkish lira or Chinese yuan, Western countries could impose sanctions on or blacklist the company,” Rajiv said.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said local garment exporters are owed more than $1 billion by Russian buyers because they could not receive payments through SWIFT following restrictions on Russian banks’ access to the system.

Many small and medium-sized knitwear exporters are yet to receive $3 million to $4 million in payments from Russian buyers, Hatem said.

“Many negotiations with Russian buyers have taken place, but the payments have not been received,” he said.

He added that some local exporters are also struggling to receive payments for goods shipped to Russia through Polish buyer LPP.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said Western governments have imposed several sanctions on Russia.
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As a result, exports to the Russian market have fallen, prompting local manufacturers to focus more on new markets such as Japan, Turkey, India and South Korea. These markets also offer strong potential for Bangladesh, he said.

However, Bangladesh could make Russia a major export destination again once the war ends, as the country remains a large market, he added.

The government is planning to issue entrepreneurs unique business IDs, allowing them to apply for various licences, clearances and approvals through a single digital platform, and cutting the time required to start a business to 14 days.

The commerce ministry and Invest Bangladesh are jointly working on the reform. Currently, it takes an average of 355 days for a company to obtain the licences, clearances and approvals needed to start operations after registration.

A 14-day Business Readiness Package is being developed for BanglaBiz, the single-window platform for business and investment services.

At present, after registering a company, an entrepreneur has to obtain multiple licences, clearances and approvals before starting a business. Besides obtaining a trade licence, Tax Identification Number (TIN) and bank account, entrepreneurs must fulfil various requirements depending on the nature of their business, including fire and environmental approvals.

Many of these are also prerequisites for obtaining an Import Registration Certificate (IRC). As a result, it can take a long time before businesses are able to open letters of credit to import necessary machinery or raw materials. According to businesspeople, the process from company registration to opening an LC can take anywhere between 180 and 355 days in some cases.

Invest Bangladesh member Nahian Rahman Rochi told TBS that the entire process of starting a business is prolonged because the existing prerequisites are dependent on one another.

"The key to reducing the process to 14 days is not to eliminate compliance. Rather, some prerequisites that are currently mandatory for starting a business or opening an LC will be reduced, made post-facto or completed in parallel," he said.

Under the proposed system, entrepreneurs will no longer need to submit the same documents separately for company registration, fire, environmental and other services. Once submitted, the information will remain linked to the Business ID and can be accessed by the relevant agencies as needed.

Besides, a dashboard will show when each approval was obtained, which ones remain pending and at what stage an application is held up.

Invest Bangladesh has already completed a mapping of the steps required to start a business and the changes needed at different stages. Work to amend regulations has also begun in some areas.

At the same time, efforts are underway to fully digitise the company registration process, bring relevant agencies – including fire and environmental authorities – onto the digital platform, and simplify licensing procedures.

Speaking to TBS, Business Initiative Leading Development (BUILD) Chairperson and former DCCI president Abul Kasem Khan welcomed the government's initiative to reduce the business-startup process to 14 days.

"We welcome the government's initiative to reduce the business-startup process to 14 days. But what is important is that the initiative should not remain limited to policies or plans; it must be implemented effectively in practice," he said.

In 2021, the Ministry of Commerce sent a recommendation to the Cabinet Division to bring all types of business entities in the country under a Unique Business Identification system. However, there has been no progress on the matter since then.

However, in 2022, the then government introduced the Digital Business Identification Number (DBID) for businesses operating in the e-commerce sector.

Abul Kasem Khan said, "Such systems are already in place in various countries around the world. Bangladesh does not need to conduct any new research; it can be implemented quickly by drawing on the experiences of countries such as Vietnam and Thailand."

He said that, alongside simplifying the procedures for obtaining various licences and approvals, the government must ensure the capacity and reliability of the digital system.

Questions over the trade licence system

Abul Kasem Khan said that rather than just simplifying the trade licence process, the government should consider abolishing such a separate licensing system altogether and introducing a single business identification number where necessary.

"Trade licence is a licence; it is a number. What we proposed is very simple – a Business Identification Number should be introduced, which I can use to conduct online business, import and export, open a bank account, and open bKash or Nagad accounts," he said.

According to Abul Kasem, the circumstances under which the trade licence system was introduced are different from today's reality. Online-based businesses have expanded significantly, he said, adding that many licences and regulations introduced decades ago need to be reassessed to determine whether they remain necessary.

"You can sit in Bangladesh and open a company in Singapore or Dubai. But why can't you start a business in your own country?" he said.

Invest Bangladesh said that after the first phase of business-startup reforms, work will begin on simplifying sector-specific licensing procedures. A committee led by the commerce ministry has already identified several priority sectors.

Officials said they aim to deliver some initial results from the reforms within the next month. A substantial part of the reforms is expected to be implemented within the next six to seven months, with plans to make the entire system operational within roughly a year.

The government is set to consider a proposal to build the country's largest 442MW solar power plant at an Executive Committee of the National Economic Council (Ecnec) meeting on Wednesday (7 October).

The Bangladesh Power Development Board (BPDB) plans to set up the solar power plant in Bagerhat's Rampal with completion targeted for December 2030. The proposed electricity tariff is Tk6.18 per unit.

According to the project proposal seen by The Business Standard, the estimated cost is Tk2,502.39 crore. Of this, Tk2,127 crore will be financed from the Power Development Fund, while Tk375.94 crore will come from BPDB's own resources.

Country's largest solar power plant planned in Rampal
The initiative is aimed at diversifying the country's primary fuel sources and strengthening energy security by increasing renewable power generation.

BPDB acquired 1,834 acres of land in Rampal in 2012, divided into Block-A and Block-B. Block-A currently hosts the Bangladesh-India Friendship Power Company Limited's coal-fired power plant, while Block-B remains under BPDB. Land development and other preparatory work have already been completed in the area.

Of the 918.50 acres in Block-B, parts of the land have been allocated for a green belt, flood protection embankment and a lake. A feasibility study found 685 acres suitable for developing the proposed 442MWp solar plant.

The project was initially planned as a joint venture, but the process was halted after the repeal of the Special Power Act 2010, amended in 2021. Later, Infrastructure Investment Facilitation Company (IIFC) conducted a feasibility study in May 2025 and recommended a 442MW grid-connected solar power plant on the 685-acre site.

The feasibility study found that the site would require minimal additional land development, helping reduce construction costs and the unit cost of electricity. It also recommended international competitive bidding to secure better pricing.

The electricity generated will be evacuated by raising the voltage from 0.8kV to 33kV and then to 230kV before being connected to the national grid through the 400/230kV substation of Bangladesh-India Friendship Power Company Limited. A new substation and around 3km of 230kV transmission line will be required for the project.

The proposed Rampal project has a lower tariff and construction cost than the 220MW Sonagazi solar project in Feni, which was approved last December at an estimated cost of Tk1,888 crore.

According to BPDB's analysis, the capacity utilisation factor of the Sonagazi project is 21%, compared with 17% for Rampal. However, the construction cost per MWp is Tk5.66 crore for Rampal, compared with Tk6.27 crore for Sonagazi.

As a result, electricity from the Rampal project is proposed at Tk6.18 per unit, compared with Tk8.87 for Sonagazi – around 43% higher. Annual revenue is projected at Tk352.41 crore for Rampal and Tk381.54 crore for Sonagazi.

Nur Ahmed, additional secretary of the Planning Wing of the Power Division, said the proposed project is a timely initiative that would add significantly to the country's renewable energy capacity.

"The proposed Rampal solar project is a timely and highly positive initiative that will significantly strengthen the renewable energy sector," he said.

He said the project proposal had already been submitted to the Planning Commission as a Development Project Proforma (DPP) and was being processed on a priority basis.

Compared with the 220MW Sonagazi project, the 442MW Rampal plant is nearly twice as large and has a comparatively lower unit cost, making it economically more viable, he added.

Bangladesh's electricity demand is projected to rise significantly in the coming years. According to the Integrated Energy and Power Master Plan 2023, peak demand is expected to reach 29,257MW by 2030, 58,597MW by 2041 and 96,767MW by 2050, while the highest generation recorded so far was 16,794MW on 23 July 2025.

The government's Renewable Energy Policy 2025 targets generating 20% of electricity from renewable sources by 2030 and 30% by 2040. The project proposal says rapid investment in renewable energy is needed as the current contribution of renewable sources to total power generation remains limited.

Truthful financial reporting, transparent ownership and control structures, predictable tax policies and stronger coordination among financial regulators are crucial to restoring investor confidence and attracting more domestic and foreign capital to Bangladesh, said Prime Minister's Special Assistant Tanvir Shahriar Gani.

Speaking at a World Investor Week 2026 conference in Dhaka today (5 October), Gani said investors assess not only the potential returns from an investment but also the reliability of financial information, the ease of withdrawing or repatriating funds and the predictability of the tax regime.

The conference, titled "Building Investor Confidence: The Role of Professional Bodies in Audit, Reporting, Governance and Risk Management", was jointly organised by the Institute of Chartered Accountants of Bangladesh (ICAB), Institute of Cost and Management Accountants of Bangladesh (ICMAB), Institute of Chartered Secretaries of Bangladesh (ICSB), Insurance Institute of Bangladesh (IIAB) and ACCA at the ICAB auditorium in Kawran Bazar.

"Global capital is highly mobile. Investors want to know where the opportunities are and whether they can trust those opportunities," he said.

Gani emphasised the need to ensure credible and timely information for investors, particularly in the capital market, where confidence depends heavily on transparency and the quality of corporate disclosures.

He also stressed the importance of clear ownership and control structures to enable investors to properly assess the risks associated with companies and their management.

Predictable tax policies are equally important for investment decisions, he said, adding that frequent or uncertain changes in tax rules can erode investor confidence and undermine long-term investment planning.

BSEC: IPO should take no more than three months

BSEC Chairman Masud Khan, speaking as the special guest, said the IPO approval process should not take more than three months once a company has completed the required documentation and scrutiny.

"There is absolutely no reason why an IPO should take more than three months. Once the necessary work is completed, three months is sufficient," he said.

ICMAB Council Member Arif Khan, in a paper presented at the conference, identified low company valuations, lengthy approval procedures, excessive documentation, policy uncertainty and weak investor confidence as major obstacles to new listings.

'Glass ceiling' keeping good companies away

The BSEC chairman also questioned why many good local companies remain reluctant to list on the stock market.

He described the situation as a "glass ceiling" that needs to be broken and said policymakers and market stakeholders need to identify what is discouraging companies from listing, including valuation, cost of capital, ownership concerns and compliance requirements.

Professional bodies' role

ICAB Vice President Asifur Rahman FCA said management, boards and auditors each have distinct responsibilities in ensuring reliable financial reporting.

Management prepares financial information, the board oversees it, while auditors provide independent assurance, he said.

He highlighted ICAB's DVS-based financial reporting verification system and its cooperation with the Financial Reporting Council, NBR, Bangladesh Bank and RJSC to improve the reliability and transparency of financial information.

Dominage Steel Building Systems disclosed yesterday that its board had recorded the transfer of 3.07 crore shares, about 30 percent of its 10 crore, to Akij Resource and two of its top executives, and approved a new board.

The recipients were Akij Resource; Sheikh Jasim Uddin, its group CEO and managing director; and Faria Hossain, its chairman.
The shares had been transferred through a matched transaction at an October 4 board meeting under Central Depository Bangladesh Limited rules, following approval from the Bangladesh Securities and Exchange Commission on August 27 and from the Dhaka Stock Exchange (DSE) on October 1, according to a DSE disclosure.

In a matched transaction, the buyer and seller agree on terms beforehand, and the deal is then processed through the depository system.

Following the transfer, the board had accepted the resignations and retirements of Muhammad Shamsul Islam, Mohammad Rafiqul Islam, Sujit Saha, Abul Kalam Bhuyan, and Rakibul Islam, all directors, effective from close of business on October 4.

The new board has Sheikh Jasim Uddin as chairman, Faria Hossain as managing director, and Md Masum Billah, Md Sheikh Sadi, and Shobrata Kumar Roy as nominee directors representing Akij Resources.

Nominee directors represent the interests of a specific shareholder or entity on a board.

Meanwhile, Dominage shares declined 1.98 percent to Tk 64.50 on the DSE to end trading yesterday.

The company posted a loss of Tk 76 lakh in the January-March quarter this year, against a profit of Tk 15 lakh a year earlier, owing to lower revenue collection, according to its financial statements.

Established in 2007, Dominage Steel Building Systems Limited specialises in pre-engineered steel buildings, offering fabrication and structural design across Bangladesh and in expanding markets abroad.

Akij Resources is already in the steel business through Akij Ispat, which produces rod. By acquiring a stake in Dominage, it is expanding into pre-fabricated steel, said Raihan Kabir, deputy chief financial officer of Akij Resources.

The company also has a cement business. “With the inclusion of Dominage, we want to create a synergy,” he said.

“We have a plan to utilise the full capacity of its factory in Ashulia within the next year,” he added.

Bangladesh and other South Asian countries need stronger technological cooperation, long-term planning, investment and domestic energy exploration to ensure energy security while moving towards a cleaner energy system, experts said.

Speaking at a strategic discussion titled "Energy Security in an Age of Transition: From Ambition to Implementation" of Bay of Bengal Conversation 2026 yesterday (5 October), they said renewable energy ambitions would remain difficult to achieve without major investment in infrastructure, technology and regulatory reforms.

M Tamim, vice chancellor of Independent University, Bangladesh, said financing and capital availability remain major challenges for energy infrastructure development.

"Whenever we talk of infrastructure for energy, there is a question of finance and absence of capital," he said, calling for greater regional cooperation and for South Asian countries to take control of their own energy future.

Sanjay Kumar Bhardwaj, professor at Jawaharlal Nehru University, India, said technological cooperation was crucial for developing countries seeking to move towards green and clean energy.

"Without technological cooperation, we cannot actually move towards green and clean energy sources," he said, stressing the importance of long-term plans for sustainable energy security and economic development.

J Alexander-Brien, founder of Maritime Frontiers, Canada, said Bangladesh's energy transition would require massive infrastructure investment and greater focus on domestic energy resources.

"Renewables are not going to happen unless there is a massive investment in infrastructure in the country," he said, adding that Bangladesh should focus on offshore exploration to reduce dependence on overseas energy imports.

Nikki Singer, executive director of the Centre for Peace and Conflict Studies, Cambodia, moderated the session.

The government has signed a $300 million financing agreement with the World Bank to strengthen food security, particularly by ensuring the availability of fertilisers for smallholder farmers during key planting seasons.

The agreement was signed today (5 October) between the Economic Relations Division (ERD) of the Ministry of Finance and the International Development Association (IDA), the World Bank's concessional lending arm.

The financing amounts to Special Drawing Rights (SDR) 219.2 million, equivalent to $300 million, under the Emergency Support for Food Security Project.

ERD Secretary Md Shahriar Kader Siddiky and World Bank Division Director for Bangladesh and Bhutan Jean Pesme signed the agreement on behalf of their respective sides.

The project will be implemented from 1 July 2026 to 30 June 2027. The Finance Division will implement it in coordination with the Bangladesh Chemical Industries Corporation (BCIC) and the Bangladesh Agricultural Development Corporation (BADC).

According to officials, the project's primary objective is to strengthen food security by ensuring the availability of eligible fertilisers, particularly for smallholder farmers, during critical planting periods.

The financing carries an interest rate of 1.5% on the withdrawn credit balance and a commitment fee of up to 0.50% on the undrawn amount. However, the World Bank has waived the commitment fee for Bangladesh for several years, including the current fiscal year.

The financing has a maturity period of 25 years, including a five-year grace period.

Officials said the World Bank remains Bangladesh's largest multilateral development partner, supporting economic and social development, institutional reforms, infrastructure and energy.

They added that the latest financing further strengthens the longstanding partnership between Bangladesh and the World Bank.

The company today (5 October) signed a land lease agreement with Invest Bangladesh at the latter's Agargaon office for 6.5 acres of developed land at the economic zone. Rancon Lubricants is a sister concern of Rancon Group.

Under the agreement, the company will establish an industrial unit with an initial annual production capacity of 25 million litres of lubricants, including industrial and automotive lubricants, gear oil, heat transfer oil, compressor oil, transformer oil and grease.

Al-Amin Talukder, project coordinator and manager of Rancon Lubricants, told TBS the plant would be equipped with modern machinery, equipment and laboratory facilities compliant with international standards.

"The plant will have facilities to receive base oil by road as well as directly from vessels through pipelines to the base oil plant. It will produce high-quality lubricants of an internationally renowned and established brand," he said.

Rancon Group has been marketing Shell lubricants in Bangladesh for more than two decades and has recently started marketing Motul, the company said.

The investment is aimed at meeting growing domestic demand, ensuring a stable supply and contributing to the national economy. Rancon currently imports finished engine oil for the local market and plans to import raw materials and blend the lubricants locally.

Nahian Rahman Rochi, member (Investment Development) of Invest Bangladesh, said the agreement was the institution's first land lease deal following the merger of three investment promotion agencies.

"Commitments from anchor investors such as Rancon Lubricants signal confidence in the new institution and help build confidence among other investors," he said.

Rochi told TBS, "Until now, Rancon Lubricants Limited has been importing finished engine oil for the local market. Under the new plan, it will import raw materials, blend the lubricants locally and supply the finished engine oil to the domestic market," he said.

The 50-year lease will begin from the date of possession, with provision for renewal. The land is scheduled to be handed over within 90 days, with construction expected to begin within 120 days and operations within 36 months of handover.

As the European Union prepares to introduce mandatory traceability requirements for imported products from 2027 to track carbon footprints and promote decarbonisation across supply chains, Bangladeshi suppliers are still waiting for clear guidelines on how the system will work and how they should implement it.

They also raised concerns over collecting data especially by the small and medium scale garment owners from multiple raw material suppliers, unified data platform, and the additional costs involved in implementation.

They called for shared responsibility among stakeholders to ensure a sustainable transition.

"Digital Product Passport (DPP), a method of supply-chain traceability, is going to be implemented from 2027. However, we still have not received any guidelines on it," said Minhazul Hoque, director of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), at the launch of Circular Textiles Bangladesh: Advancing Traceability and Decarbonization at a hotel in Dhaka today (5 October).

Solidaridad, an international civil-society organisation (CSO) working to make global supply chains more sustainable and inclusive, organised the programme in partnership with the Embassy of the Kingdom of the Netherlands, the Netherlands Enterprise Agency (RVO), several Dutch retail brands, technology innovators, and Bangladesh trade leaders.

Minhazul said those who contribute 60 to 70% local value addition – face immense data management challenges.

"Moreover, upgrading machinery with Internet of Things (IoT) devices and flow meters to automate data collection requires significant capital investment that many SMEs cannot manage without targeted financing," he added.

A representative of Epyllion Group, a leading ready-made garment (RMG) exporter, raised concerns over collecting data from its numerous raw material suppliers, saying, "There is a challenge in collecting data from upstream suppliers."

Given the situation, Bangladeshi suppliers have urged the EU to extend the timeline for implementing the DPP requirement beyond 2027.

Experts, however, said Western consumers are becoming increasingly conscious of the supply chains behind the products they buy and are likely to make purchasing decisions based on factors such as carbon footprints and the sourcing of raw materials.

Speaking as Chief Guest, Md Ataur Rahman Khan, Secretary of the Ministry of Commerce, urged factory leaders to view digital traceability as a strategic market advantage rather than an administrative burden, reaffirming the Ministry of Commerce's commitment to future-proofing the RMG industry and scaling pilot solutions nationwide.

"Bangladesh must redefine its global competitiveness beyond price, quality, and delivery to encompass circularity and verified origin," he added.

Shrimp exporter Apex Foods Limited reported that its profit in the 2025-26 fiscal year jumped more than 121% year-on-year, driven by higher revenue compared with the previous fiscal year.

At the end of June 2026, Apex Foods' earnings per share (EPS) rose to Tk14.21, while its net profit stood at Tk8.10 crore, up significantly from Tk3.61 crore in FY25. The board of Apex Foods recommended a 20% cash dividend for shareholders, amounting to Tk2 per share.

Despite the sharp increase in profitability, the company kept its dividend payout unchanged from FY25, when it also paid a 20% cash dividend.

Following the annual corporate declaration, Apex Foods' share price soared 19% to Tk311.50 per share on the Dhaka Stock Exchange (DSE) today (5 October).

According to regulatory orders, the daily circuit breaker limit for listed securities priced below Tk200 is usually 10%, while for those priced between Tk200 and Tk500, it is 8.75%.

As circuit breaker limits are relaxed on the day of an annual corporate declaration, Apex Foods traded without price restrictions, allowing its share price to jump more than 19%, or Tk51 per share.

According to its financial reports, Apex Foods reported an EPS of Tk4.45 in the first nine months of FY26, up to March, while revenue reached Tk237 crore – a 40% increase from the same period of the previous fiscal year.

Based on the published data, the company earned an EPS of Tk9.76 in the final three months of FY26 alone.

Regarding the significant increase in profitability and EPS, the company said the growth in FY26 was primarily driven by higher revenue.

However, as the company has not yet published its full annual report, the exact growth in annual revenue remains unconfirmed.

In addition to the rise in EPS, the company recorded a significant rebound in net operating cash flow per share (NOCFPS).

According to price-sensitive information released by the company, its NOCFPS surged to Tk64.89 at the end of FY26, recovering from a negative Tk59.16 in FY25.

The company said the improvement in cash flow was mainly due to higher revenue collections during FY26 compared with the previous year, although cash flow conditions may vary over time depending on external factors.

Its net asset value (NAV) per share also increased significantly to Tk241.97 as of June 2026, driven by an appreciation in the share prices of its investments.

The Annual General Meeting (AGM) is scheduled for 26 November via a digital platform, while the record date for identifying eligible shareholders has been fixed for 27 October.

Middle East oil exports, excluding Iran, surpassed their pre-war levels last week, despite attacks on ships in the Strait of Hormuz, according to data from the maritime tracking firm Kpler.

For the first time since the US and Israel launched their offensive against Iran at the end of February, the weekly average of shipments rose for several days above the pre-conflict average of 18 million barrels per day.

Crude oil exports reached pre-war levels in September, with at least 16.5 million barrels leaving the region excluding Iran, Kpler said on Wednesday.

"Forty percent now bypass Hormuz, and most crude crossing the strait changes tankers offshore," Kpler said, adding that most of the oil flowed through Saudi and United Arab Emirates pipelines.

These figures include flows via the Red Sea, a route increasingly used to bypass the blockade Iran is attempting to impose on Hormuz -- where around a fifth of the world's petroleum supplies crossed before the conflict.

Iran still claims control over the strait, and ships without its authorisation risk coming under attack, but more and more are making it out, and alternative routes meant to bypass the waterway are operating at full capacity.

Despite the rebound, experts stressed that the situation was far from normal, and Iran remains deprived of a large share of its own exports by a US counterblockade of its ports.

Saudi Arabia is benefiting from the reactivation of its East–West pipeline, which links the kingdom's main oil fields in the east to its Yanbu terminal on the Red Sea, allowing it to bypass Hormuz.

Shut down on September 11 after being hit by strikes launched from Iraq, the pipeline resumed operations on September 22, Amena Bakr, an analyst at Kpler said last week.

The United Arab Emirates is also able to bypass Hormuz thanks to its pipeline linking Abu Dhabi's fields to Fujairah, a terminal just outside the strait on the Gulf of Oman.

Around 0310 GMT on Monday, Brent North Sea crude for December delivery fell 0.79 percent to $101.44 a barrel.

Its US counterpart, West Texas Intermediate for November delivery, dropped 1.20 percent to $90.02.

The US dollar will give up most of its recent gains over the coming year according to FX strategists polled by Reuters who made only minor revisions to long-held weak dollar views despite a rally of more than 3 percent in the greenback since early September.
But asked which was more likely in the near term, an 80 percent majority said the currency was likelier to beat their three-month forecasts than fall short, suggesting the potency of the dollar's recent rise as global bond markets convulse may be starting to sink in.

The greenback has been boosted in recent weeks by a September Federal Reserve interest-rate hike. At one point rate futures markets priced nearly four more. Treasuries also suffered their worst sell-off since 1994 last quarter with both 10- and 30-year yields climbing to near-25-year highs this week.

But FX strategists, who have underestimated the dollar's strength in their three-month forecasts for nine straight months, again held to their bearish view in the September 30-October 2 poll. Median views from nearly 70 forecasters put the euro at $1.14 in a month, up 1 percent, and $1.15 in both three and six months, up about 3 percent, before $1.16 in a year.
"The dollar can remain a little bit on the stronger side in the very near term....But beyond that in a six-month to one-year horizon, we are still in a bearish-dollar regime," said Jayati Bharadwaj, head of FX strategy at TD Securities.

FED RATE VIEW IN DRIVER'S SEAT

Much of the dollar's strength traces back to Fed Chair Kevin Warsh's focus on bringing down inflation, which has run above the Fed's 2 percent target for over five years. Oil stuck above $100 a barrel has compounded the problem as the US-Israeli war on Iran, now in its eighth month, shows no sign of ending.

But TD's Bharadwaj, like others in the survey, expects the Fed to hike less than markets are pricing. Kenneth Broux, head of corporate research for FX and rates at Societe Generale, sees the dollar sliding only once higher rates slow the US economy, which grew at a far-above-consensus 2.2 percent annualised rate in the second quarter.

YEARS OF WEAK DOLLAR BIAS

Reuters Polls data show FX forecasters have called for dollar weakness on the 6-12 month horizon for at least half a decade, getting it wrong as a group most of the time over the last two years of monthly polls.

Paul Mackel, global head of FX research at HSBC, among the few forecasters to call the stronger dollar correctly this year, sees the currency extending gains so long as markets expect the Fed to keep raising rates.

"The dollar is once again looking like the cleanest dirty shirt," he said, expecting strength at least through the first half of 2027.

Mackel rejected the consensus view of eventual weakness, saying forecasters have long carried a bias the currency must fall, relying on a framework that overlooks the side of the story tied to short-term interest rates and the resilience of the US economy.

"There's an underlying bias in the market that's gone on for decades against the dollar and it often is based on...valuation models that show it's expensive," added Shahab Jalinoos, head of G10 FX research at UBS, another to have caught on to the strong-dollar trend early.

If the US consistently sees capital inflows and has consistently strong equity markets and foreign interest in its markets, that creates demand for dollars that maybe some of these more trade-focused models miss.

The capital market regulator plans to cut the approval time for initial public offerings (IPOs) to three months from nearly 18 months, Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan said today (4 October).

Several quality companies, including a foreign-owned firm, are also expected to submit IPO applications soon, he said, expressing hope that the prolonged drought in new listings will end.

"We cannot allow the IPO drought to continue," Masud said, adding that the BSEC has identified complexities in the existing process and taken initiatives to reform the rules.

He was speaking at the opening of a weeklong programme organised by the BSEC in line with the International Organization of Securities Commissions (IOSCO)'s World Investor Week at the Krishibid Institution Bangladesh auditorium in Dhaka.

Finance Minister Amir Khosru Mahmud Chowdhury attended the event as chief guest. Tanvir Shahriar Ghani, special assistant to the prime minister for investment and capital market affairs; Financial Institutions Division Secretary Nazma Mobarek; and Insurance Development and Regulatory Authority (IDRA) Chairman Mir Nadia Nivin also attended.

Masud said the proposed new IPO rules would streamline the process after applications are submitted. The BSEC, Dhaka Stock Exchange and Chittagong Stock Exchange would coordinate their processes to reduce approval time.

Direct listing for top-tier firms

The BSEC chairman said direct listing would also be introduced to attract large local and multinational companies to the capital market.

"Companies will have the option to come through IPOs or direct listing. We are keeping both options open," he said.

Masud also highlighted measures taken since the current commission assumed office, including withdrawing floor prices, restructuring the Beximco board, deregulation and empowering the DSE.

Focus on digitalisation, investor protection

Masud said greater use of digital technology is needed to strengthen investor protection and restore market confidence.

The commission is working to bring brokerage houses' back-office software under an integrated system with real-time connectivity. This would allow regulators to access information on brokers' accounts and funds held in their bank accounts, he said.

The BSEC is also working to introduce an order management system and replace physical slips with automated processes.

The commission is taking steps to expedite the disposal of investor complaints and cases, Masud said.

Necessary amendments to securities laws and ordinances have been finalised and sent to the ministry for approval.

Bond market, institutional investment

Masud said the BSEC has approved bonds worth nearly Tk3,000 crore since the new commission took charge, with issuers required to list on the main board of stock exchanges.

"Developing the bond market requires an effective link with the stock market," he said, adding that the commission is working to expand markets for corporate, green and other bonds.

He also said there was significant scope to increase institutional investment in Bangladesh's capital market.

Policy initiatives would be considered to allow part of the funds held by pension and gratuity funds and insurance companies to be invested in corporate bonds and equities, he said.

Masud described the insurance sector as a potentially major source of investment for the capital market and stressed the need to develop the largely inactive sector. He also called for greater focus on the mutual fund industry.

Reforms to strengthen market

Tanvir Shahriar said the BSEC had undertaken wide-ranging reforms to ensure sustainable market development, investor protection and alignment with international standards.

"The positive results of these reforms will become visible in the stock market within the next 12 months," he said.

Tanvir said the commission had been taking initiatives in line with IOSCO's mission since assuming office four months ago. It is also monitoring indicators such as market capitalisation-to-GDP and average daily turnover to assess market conditions.

Insurance sector can become major investor

IDRA Chairman Nadia said her sector could become a major source of long-term institutional investment in Bangladesh's capital market.

Greater insurer participation could create a significant source of long-term financing for bonds, equities and infrastructure, she said.

Nadia said World Investor Week aims to educate investors, as knowledge and information help build resilience and support informed decisions.

She said expanding market size alone would not be enough. Greater depth would require long-term institutional investors, a role played largely by insurance companies in developed economies.

Life insurers may face liabilities stretching 10, 15 or 20 years against policy premiums, creating a need to invest in long-term assets, she said. Such funds can support government and corporate bonds, infrastructure and equities.

Nadia said insurance-sector assets in Malaysia were equivalent to about 22% of GDP, while India's insurance sector accounted for around 3.5% of GDP. The assets of India's Life Insurance Corporation alone were about $500 billion, she said.

In Bangladesh, the insurance sector currently accounts for only 0.33% of GDP. Raising the ratio to 3% could create an investment pool of nearly $100 billion, which could provide long-term institutional capital to the bond and equity markets as well as infrastructure, she added.

OPEC+ agreed to keep oil production ‌targets steady for November at a meeting today (4 October), the producer group said, in line with expectations that further output policy adjustments are unlikely until next year.

Seven core members of the group comprising the Organization of the Petroleum Exporting ​Countries and allies including Russia made the decision for November in a brief online meeting ​on Sunday (4 October). The core members are Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and ⁠Oman.

Gulf OPEC+ producers have been pumping well below output targets in the face of continuing export ​disruptions from the US-Israeli war on Iran, with exports fluctuating at 60% to 80% of normal levels in recent ​months.

"The OPEC+ group of seven kept their production ceilings unchanged, in line with market expectations. That said, despite rising flows through the Strait of Hormuz, their output levels remain well below quota," said UBS analyst Giovanni Staunovo.

"Consequently, the oil ​market remains tight."

Oil prices had dropped on Friday after European leaders agreed to US President Donald Trump's ​request to release diesel reserves. Even so, Brent crude remains above $100 a barrel, up from about $73 before the Iran ‌war started ⁠in late February.

Output hikes have been largely on paper this year

The Iran war has also delayed the group's output capacity review — crucial to determine members' 2027 output quotas — because it has thrown estimates of future production potential into uncertainty, industry sources told Reuters last week.

OPEC+ has been raising output targets for much ​of 2026 after years of ​production cuts, but most ⁠of the increases stayed on paper because of the Middle East conflict.

The seven core OPEC+ members pumped 25 million barrels per day in August, up ​630,000 bpd from July, yet still roughly 5 million bpd below prewar levels ​in February, ⁠OPEC data shows.

The seven hold their next meeting on 1 November.

OPEC+ still has about 2 million bpd of output cuts in place covering most members. It needs the result of the capacity review to decide how ⁠to distribute ​increases and any changes to output are unlikely before 2027, sources ​have said.

A separate OPEC+ ministerial group called the Joint Ministerial Monitoring Committee (JMMC), which does not decide policy, also met on Sunday ​to review the market.

Finance Minister Amir Khosru Mahmud Chowdhury on Sunday said the face of Bangladesh’s capital market will change completely within the next year, with the market becoming far stronger.

“If there is no accident and the capital market keeps running the way it is now, a huge positive change will come in the market within the next year,” Khosru said at World Investor Week 2026, organised by the Bangladesh Securities and Exchange Commission (BSEC) at Khamarbari in the capital.

The minister said the capital market is in a much better position than in the past and investors are regaining confidence.

He added that many large foreign companies have also shown interest in investing in Bangladesh’s stock market.

“I was not confident about how I could approach big foreign companies with the capital market in this state. But when I talked to them, they expressed interest. They are constantly keeping track of Bangladesh. They trust the current leadership of Bangladesh. They will come to the Bangladesh market soon,” he said.

Urging everyone to stop dwelling on past events in the capital market and move forward, Khosru said, “If we want integrity and transparency, we must become self-regulated. Every institution, including brokers, exchanges, investors and financial entities, must play the role of a self-regulator. I do not believe in regulatory bodies.”

Stressing the need to bring the capital market into the broader economic ecosystem, he said the NBR, Bangladesh Bank and the capital market had so far worked like isolated islands. “Now we have built an ecosystem where everyone will work together.”

The minister also warned that businesses relying on high-interest bank loans will not survive competition.

He said the government and private institutions alike tend to borrow from banks at high interest rates at the slightest need, an approach that cannot sustain businesses in the global market.

“Money must be raised from the market, and the best avenue for that is the capital market. We are also working to strengthen the bond market,” he said.

Khosru said Bangladesh can never become a trillion-dollar economy by 2034 by borrowing from the International Monetary Fund (IMF) and the World Bank.

“I have cancelled my meeting with the IMF. I have told them plainly that the government is not bound to accept their conditions. We need $50 billion every year. How much will the IMF give us? And then we would have to accept conditions again. All that is out from now on. We will raise money from the market and do business,” he said.

Saying the government will not finance the business needs of state enterprises, the minister said, “Why should the government pay to buy aircraft? It cannot be that the government provides taxpayers’ money and enterprises do business with it.”

He said the country’s financial architecture is being overhauled and the economy will become market-based in the days ahead.

The depth of the shallow capital market will be increased to make the economy more market-oriented, he added.