The Dhaka Stock Exchange (DSE) Brokers Association (DBA) has urged the stock exchange to avoid what it called "unnecessary harassment" of brokerage houses, particularly in cases where inspections or investigations could disrupt their normal business operations.

The association made the request at a meeting with the DSE today (8 September), where members of the DSE board were present. The meeting discussed recent inspections of brokerage houses and their potential impact on the capital market.

Market participants said nearly 100 brokerage firms have come under investigation over the past one and a half years. Of these, around 8 to 10 brokerage firms were reportedly inspected or investigated last week.

DBA President Saiful Islam told TBS that the association does not oppose investigations by the Bangladesh Securities and Exchange Commission (BSEC) or the stock exchange.

"We do not want unnecessary harassment of brokerage houses. The aggressive approach taken by the stock exchange in investigating brokerage houses has had a negative impact on the market, which is not desirable," he said.

He said routine investigations were necessary and that appropriate action should be taken if any brokerage house was found to have committed irregularities.

"Routine investigations can take place. If any brokerage house has committed an irregularity, it should be appropriately punished. But it should not be done in a way that creates a negative impact on the market," he said.

Saiful said several brokerage houses have recently faced investigations, and the way these incidents have come into the public domain has negatively affected both the concerned firms and the broader capital market.

"Investigations should be conducted in a tolerable manner so that there is no disruption to business activities. We should not feel stressed, and there should be no damage to the market," he said.

DSE's position

Responding to concerns over excessive intervention in brokerage houses, the DSE chairman said the exchange's board does not interfere in the day-to-day activities of its Regulatory Affairs Department. Instead, the board provides policy-level guidance.

He said the DSE would investigate or conduct inquiries into specific matters when there is information indicating particular irregularities.

The DSE chairman also urged member firms to resolve any shortages in their CC accounts, shares or other assets on their own initiative and without delay.

Such shortages not only affect the operations of the concerned firms but also damage the reputation of the capital market's overall ecosystem, he said.

"To make the market more disciplined, transparent and aligned with international standards, all stakeholders must properly perform their respective responsibilities. Through collective efforts, it is possible to take Bangladesh's capital market to a new height within the next five years," he said.

He also called on member firms to share their problems, concerns, recommendations and new ideas with the DSE, saying the exchange wants to make its market-development initiatives and future activities more effective based on the practical experiences and views of its members.

Why recent inspections were conducted

The DSE said some compliance and surveillance inspections from 2025 remained unresolved and needed to be completed through the submission of reports to the BSEC.

The recent inspections of brokerage houses were conducted as part of the process of completing those outstanding inspections, it said.

Participants at the meeting also stressed the need for clear and specific criteria for determining abnormal trading.

They said high trading volumes in a particular period should not, by itself, be considered an irregularity. Instead, assessments should take into account the nature of the transactions, their impact on share prices, the investor's financial capacity and the instructions given for the trades.

Saiful Islam said the concerns of brokerage houses were discussed in the presence of the DSE board, which he said agreed with the points raised by the DBA.

He added that the DSE managing director assured the association that such problems would not recur in the future.

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

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

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

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

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

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

TELETALK MISSES TWO 4G STANDARDS

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

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

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

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

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

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

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

GRAMEENPHONE MEETS STANDARDS

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

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

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

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

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

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

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

ROBI DATA FACES VERIFICATION PROBLEM

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

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

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

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

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

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

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

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

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

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

BANGLALINK SHOWS MOST CONSISTENT RESULTS

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

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

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

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

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

Bangladesh's benchmark DSEX index could reach the 10,000-point mark by the end of 2027 as the economy moves from stabilisation to recovery and eventually acceleration, according to Capital Alliance (CAL), a frontier-markets-focused investment bank.

In its recent published Bangladesh Macro Outlook 2026-30 report, titled "Shifting Gears," CAL projects around 70% upside in the benchmark index from its late-July 2026 level of 5,896 points. The forecast is based on a combination of stronger corporate earnings, improving macroeconomic stability, monetary easing and a potential re-rating of the stock market.

CAL Bangladesh, a part of the CAL Group incorporated in the UAE with roots in Sri Lanka, previously received a Trading Rights Entitlement Certificate (TREC) from the Dhaka Stock Exchange to conduct stock-market operations under the brokerage firm named ACL Securities Limited.

The report, which tracks more than 450 macroeconomic and market indicators, argues that Bangladesh does not need an economic miracle to achieve the target. Rather, a return to historical growth patterns, combined with improving investor confidence, could drive the market higher.

Despite the bullish outlook, CAL has identified several risks. Global energy shocks could keep inflation elevated and delay interest-rate cuts, while unresolved banking-sector capital problems could limit the financial system's ability to fund economic expansion.

Domestic energy shortages could also prevent industries from fully utilising their existing capacity.

Earnings growth and valuation re-rating

CAL expects corporate earnings to rebound by 26% year-on-year, supported by higher revenues as real incomes recover, improved operating margins as companies utilise spare capacity, and lower finance costs as interest rates decline.

The investment bank also expects the market's price-to-earnings (P/E) multiple to rise from around 10.4 times currently to 14 times by end-2027.

According to CAL, the combination of higher earnings and a higher valuation multiple could provide the main fuel for DSEX to reach 10,000 points.

The report identifies three key drivers behind the expected acceleration: demographic expansion, productivity gains and monetary easing.

Bangladesh is adding around 11.5 lakh workers annually, with the working-age population growing by about 1.5% a year. CAL predicts that by 2030, the number of households in the middle-income category – defined here as those earning more than $325 per month – will rise by 28%, reaching 1.5 crore households.

This expanding consumer base is expected to support demand for consumer goods and services.

At the same time, Bangladesh has significant unused industrial capacity. Companies invested heavily in FY23, but production remained constrained by energy shortages and high borrowing costs. As these pressures ease, companies could increase output without immediately undertaking substantial new capital expenditure, improving profitability through operating leverage, according the report.

Monetary policy is another key factor. Bangladesh Bank delivered its first policy-rate cut in six years in mid-2026, and CAL expects the easing cycle to continue.

The 364-day Treasury bill rate, which has remained above 12%, is projected to fall to 7.7%-8.5% by June 2027, according to the report. Lower borrowing costs are expected to support private-sector credit and investment.

Macro stability and consumer boom

CAL believes Bangladesh has largely moved beyond the correction phase of 2023-25. Money growth has been restrained, while inflation has fallen more than three percentage points from its peak.

The country's balance of payments has also returned to surplus and the foreign exchange market has stabilised, creating a more favourable backdrop for investment.

CAL expects the taka to remain relatively stable against the US dollar, reaching Tk125-Tk127 per dollar by June 2027, implying depreciation of only 1.5%-3.2%.

A more stable currency could also encourage foreign portfolio investors to return to Bangladesh's capital market after staying on the sidelines amid currency volatility and the previous floor-price regime, the report added.

The report also projects Bangladesh to become the world's ninth-largest consumer market by 2030, surpassing economies such as Germany and the UK. Per-capita GDP is expected to reach $4,000, supporting a shift from unbranded goods towards trusted and premium brands.

CAL said much of the infrastructure needed to support this consumption-led expansion is already in place or nearing completion. Electricity-generation capacity, for example, is expected to rise from 12.4GW to 28GW, while major infrastructure projects such as Dhaka Metro Rail and the third terminal of Hazrat Shahjalal International Airport are supporting economic activity.

CAL nevertheless maintains its "Accumulate Stocks" recommendation, arguing that these risks are more likely to affect the timing of the recovery than its overall direction.

The report concludes that investors who position themselves before the recovery becomes fully visible could benefit from the market's next phase of growth.

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

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

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

That is where Invest Bangladesh came from.

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

The significance is the combination of capabilities.

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

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

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

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

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

This is not the first rodeo.

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

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

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

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

The writer is the head of Business Development at Invest Bangladesh

Bangladesh and Australia on Tuesday discussed various bilateral and multilateral issues, including cooperation in trade, investment, energy, labour mobility, and regional and global issues.

Australian High Commissioner to Bangladesh Susan Ryle, who paid a courtesy call on State Minister for Foreign Affairs Humaiun Kobir at his office, reaffirmed that Australia will continue to support Bangladesh regarding vocational training and health issues.

The envoy said Australia will always be with Bangladesh in resolving the Rohingya crisis as well.

She also mentioned that Australia and Bangladesh are closely cooperating at the UN and other international forums, said the Ministry of Foreign Affairs.

State Minister Humaiun sought closer cooperation and collaboration between Australian TAFE (Technical and Further Education) institutions and our Technical Training Centres (TTCs), as well as in training for Bangladeshi caregivers.

He praised Australia's continued support in addressing the Rohingya humanitarian crisis and hopes to continue working closely with Australia towards a sustainable solution to this prolonged crisis.

The Chittagong Stock Exchange (CSE) is pushing to diversify Bangladesh's capital market by introducing a commodity exchange, aiming to expand investment opportunities and bring the country's financial market closer to international standards.

Md Saifur Rahman Mazumdar, managing director of the CSE, said the initiative would also challenge the conventional perception that the capital market is limited to share trading.

He made the remarks at a workshop titled "Diversification of the Capital Market: Prospects of Commodity Exchange in Bangladesh", organised by the Chattogram Television Reporters Network at the CSE conference room today (8 September).

Saifur said incorporating a commodity market into the capital market would diversify the financial system and create new investment avenues.

Speakers said a commodity exchange could help businesses manage risks from price fluctuations while providing a more transparent mechanism for price discovery.

An organised and properly regulated market would allow buyers and sellers to determine commodity prices through formal trading rather than relying solely on fragmented physical markets, they said.

Bangladesh's capital market is currently centred largely on equities and related securities. A commodity exchange would introduce organised trading in commodities and potentially provide instruments to hedge against price risks.

The speakers, however, stressed that the market would require appropriate regulations, trading infrastructure, warehousing and quality standards, along with safeguards against manipulation.

The CSE has been working on developing a commodity exchange for several years as part of efforts to broaden the country's capital market.

For Bangladesh, where businesses are often exposed to sharp fluctuations in imported raw material and commodity prices, such a platform could provide an additional tool for managing commercial risks.

The success of the initiative will depend on establishing the regulatory, technological and physical infrastructure needed to ensure transparent and credible commodity trading.

Former CSE president Mirza Salman Ispahani attended the workshop as chief guest, while CSE Director Major Md Emdadul Islam was present as special guest.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Inflation, Wages In Flux

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

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

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

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

Informal Sector Bears The Brunt

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The country's premier bourse returned to negative territory today (8 September), erasing early intraday gains as subdued investor confidence and macroeconomic headwinds prompted a wave of profit-taking.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) dropped by 28 points, or 0.50%, to settle the session at 5,539.

The day's trading was characterised by significant volatility. The market opened on a positive note, carrying forward the bargain-hunting momentum from the previous day's late-session rally, which pushed the benchmark index to an intraday high of 5,628.63 points.

However, the optimism was short-lived. As the session progressed, selling pressure intensified, dragging the index to an intraday low of 5,536.98 points before it closed near that level.

According to market analysts at EBL Securities, the capital market failed to sustain the previous day's buying spree as broad-based sell-offs resumed. Subdued investor confidence, fuelled by persistent concerns over the national energy crisis and uncertainty ahead of the corporate earnings season, outweighed optimism over potential regulatory support.

Despite the high trading volume, the textile sector fell 1.7%, while ceramics and general insurance also ended lower. Services and real estate was the lone gainer, edging up 0.4%.

Sheltech Brokerage Limited said the fragile sentiment led to heavy distribution in the late session, reflecting a preference among investors to lock in whatever gains remained.

Market participation remained relatively low, although turnover on the DSE rose marginally by 3% to Tk590 crore from the previous session. Market breadth turned sharply bearish, with 252 issues declining, 83 advancing and 61 remaining unchanged.

The textile sector dominated turnover, accounting for 30.3% of total trading, followed by general insurance at 13.5% and pharmaceuticals at 9.2%.

Despite leading turnover, the textile sector fell 1.7%. Ceramics and general insurance also ended lower, while services and real estate was the lone sector to gain, edging up 0.4%.

Individual stock performance was highlighted by Envoy Textile, Malek Spinning, and Sharp Industries, which were among the most traded stocks of the day.

In the gainers' list, Sunlife Insurance topped the chart with a 6.32% rise, followed by Atlas Bangladesh, GQ Ball Pen, and Envoy Textile.

Conversely, Saiham Textile emerged as the top loser, shedding 9.74% of its value, followed closely by Prime Textile, Reliance One Mutual Fund, and Malek Spinning.

The bearish sentiment was not entirely mirrored at the Chittagong Stock Exchange (CSE), where the key indices managed to eke out marginal gains.

The Selective Categories' Index (CSCX) inched up to 9,131 points, while the All Share Price Index (CASPI) rose by 8 points to settle at 14,927. Turnover at the port city bourse saw an 8% surge, reaching Tk20 crore.

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

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

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

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

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

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

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

Current account surplus

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

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

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

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

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

Financial account turns negative

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

PRAN-RFL's manufacturing and generation expansion

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

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

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

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

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

Walton steps up production capabilities

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

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

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

$15m inverter imports annually

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

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

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

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

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

End-to-end support

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

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

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

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

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

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

Higher allowances, more beneficiaries

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

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

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

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

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

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

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

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

Govt moves to prevent misuse of safety net funds

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Petrobangla has sharply eased the entry requirements for new spot liquefied natural gas (LNG) suppliers as Bangladesh seeks to widen its sourcing options amid severe gas shortages and rising global LNG prices.

The state-run corporation will now allow companies to seek enlistment with just one successfully completed LNG supply contract and $50 million in financial capacity. This is a significant relaxation of the experience, financial and operational requirements introduced in March.
The move comes at a difficult time for the country’s LNG procurement. Disruptions at its two floating LNG terminals, cargo delivery problems and a global supply squeeze pushed average gas supply to 2,235 million cubic feet per day (mmcfd) in August -- the lowest August supply in a decade.

Official demand was around 3,860 mmcfd.The government had to make emergency direct purchases of LNG as industries struggled with low gas pressure and power generation was hit by fuel shortages.

Spot LNG prices have also risen sharply. Bangladesh last week approved a cargo at more than $28 per million British thermal units (MMBtu), the highest price since 2022. Before the Middle East war disrupted global supplies, the country typically paid $10 to $12 per MMBtu for spot LNG.

Against this backdrop, Petrobangla issued a fresh international invitation on August 29 to enlist more suppliers under “revised criteria”.

KEY REQUIREMENTS EASED

Under the March rules, applicants needed at least two years of LNG supply experience and deliveries of at least 0.5 million tonnes in each of two of the previous five years.

The new criteria require only one successfully completed LNG supply contract, with no minimum delivery volume.

The financial threshold has also been cut from $100 million in net worth in two of the previous three fiscal years to $50 million. Companies can meet the requirement through liquid assets, working capital, credit facilities or bank solvency.

Several other requirements have been removed.

Applicants no longer need experience supplying LNG to floating storage and regasification unit (FSRU)-based terminals or the ability to supply lean LNG containing at least 91 percent methane.

They also no longer need to show that they had no failed LNG cargo deliveries in the previous five years or own or charter an LNG carrier. The revised document marks these requirements as “Not Applicable”.

The requirement to provide arbitration history has also been removed. Previously, applicants could have no more than three arbitration awards against them in the previous five years.

Joint venture requirements have also been eased. The lead partner now needs only one successfully completed LNG supply contract.

The $50 million financial requirement can also be shared, with the lead partner meeting 75 percent and the other partner or partners the remaining 25 percent.

The changes could bring LNG traders with shorter operating histories, lower financial capacity and no LNG carrier of their own or under charter into Petrobangla’s supplier pool.

However, Petrobangla has not explained why it relaxed requirements introduced only a few months ago.

Petrobangla Director (operations and mines) Md Shoyeb, the contact person for the enlistment process, told The Daily Star that the changes aim to attract more suppliers.
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“We are looking for more participants in the spot market,” he said.

A virtual pre-application meeting with prospective suppliers is scheduled for today, while applications are due by September 15.

The exercise will not replace existing suppliers, and companies already enlisted for spot LNG supply do not need to apply again.

Petrobangla currently has 30 companies on its latest spot LNG tender list. The new exercise could further expand a supplier pool that has grown significantly since the change of government in August 2024.

Before then, Petrobangla had Master Sale and Purchase Agreements with 23 suppliers, but spot LNG purchases were largely concentrated among four or five suppliers.

The interim government later brought spot LNG purchases under the public procurement framework after suspending procurement under the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010.

The latest enlistment is being conducted under the Public Procurement Rules 2025.

Bangladesh is making a final push to win support from countries and trade blocs for a three-year delay to its graduation from the UN list of Least Developed Countries (LDCs), as the 81st session of the UN General Assembly begins in New York.

The decision on Bangladesh and Nepal’s requests to defer their LDC graduations by three years is expected at the session.

The 81st UNGA begins today, with the main high-level meetings of heads of state and government scheduled for September 18 to 28, according to the UN.

Bangladesh’s request to defer its graduation has already been recommended by the UN Committee for Development Policy (UNCDP). Following that, the UN Economic and Social Council (ECOSOC) agreed to put the proposal before the General Assembly.

“The decision on Bangladesh’s issue of LDC graduation deferment may be taken in the high-level meeting between September 22 and September 23,” Commerce Secretary Md Ataur Rahman Khan told The Daily Star over the phone yesterday.

Bangladesh has been lobbying different countries and trade blocs, including the European Union (EU), for support for its request for a three-year deferral, Ataur said.

The commerce secretary recently visited New Zealand and Australia to seek their support, arguing that the country needs more time to prepare for a smooth graduation.

“Bangladesh has also sought the backing of the G77, a group of 135 developing countries, and its members have committed to supporting the proposal at the UNGA,” Ataur said.

Bangladesh is also in close contact with the EU and African LDCs to seek their support. Nepal is backing Bangladesh’s efforts as it has also sought a deferral, he said.

The commerce secretary said that senior government officials have been seeking support directly from governments and trade blocs, while Bangladesh’s high commissioners in different countries have also been lobbying on the issue.

The deferral request could be decided in one of two ways. If Bangladesh’s proposal is approved unanimously, there will be no need for a vote.

But if there is no consensus, the proposal will go to a vote among member states. Bangladesh will need a two-thirds majority for its request to be approved.

“I am very much hopeful that we can secure the support of the required member countries for the deferment of the LDC graduation, as we have been working on it over the last few months and still continuing our efforts. They have also committed to supporting us,” the commerce secretary also said.

Earlier, on February 19, the BNP government sent a letter to the chair of the UNCDP, requesting that the preparatory period be extended until November 24, 2029, saying more time was needed to ensure adequate preparedness.

Following Bangladesh’s request, the UNCDP discussed the issue at its annual meeting in February and agreed on a process to assess the proposal.

The country’s business community has also been pressing the current government and the previous interim administration to delay graduation, saying businesses need more time to prepare.

Business leaders said high bank interest rates and the political changeover in 2024 following widespread protest and political uncertainty have hit the economy.

A UN assessment report in March said Bangladesh still faced serious gaps in its readiness for graduation, as its economy continued to be affected by domestic and international shocks, including the US-Israel’s war on Iran.

The report highlighted disruptions between 2017 and 2026, including climate vulnerability, the Rohingya crisis, the Covid-19 pandemic, the Russia-Ukraine war, inflation, pressure on the balance of payments and a prolonged macroeconomic slowdown that predated the regime change.

It said that while Bangladesh met all three criteria for graduation, significant risks persist, including the loss of trade preferences, fiscal and financial vulnerabilities, and weak institutional coordination.

Rising import costs for fossil fuels have created operational constraints, while gas shortages have worsened because of the Middle East conflict, said the UN report.

Economic growth slowed from 7.1 percent in FY22 to 3.5 percent in FY25, weakening momentum ahead of graduation. Inflation has outpaced wages, pushing millions into hardship and vulnerability.

A recent UN Trade and Development assessment estimated that Bangladesh could lose more than $17.5 billion in annual exports after graduation.

Mustafizur Rahman, distinguished fellow at the local think tank Centre for Policy Dialogue (CPD), said Bangladesh’s preparation has been taken in two ways. First, Bangladesh applied for the deferment; second, the UN itself conducted an assessment based on Bangladesh’s plea for deferment.

Bangladesh will have to secure the deferment at this session as the country’s LDC graduation is scheduled for November 24 this year, he added. He also said the support of African LDCs is important.

Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said Bangladesh should now build consensus among UN member states so that the proposal can be passed smoothly at the General Assembly.

“Bangladesh should continue lobbying the G77 and the EU, while securing support from African LDCs is particularly important because most LDCs are in Africa,” he said.

Moreover, a consensus should be built between the UNCDP and UN ECOSOC that Bangladesh is facing a crisis, said the economist, specialising in applied international trade and development issues.

“The main partners are the EU, UK, Scandinavian countries, G77 countries and the African LDC group,” he added. “The government should also send letters to different sub-committees of the UN body seeking their support for the deferment.”

However, it may be difficult to obtain US support. But Bangladesh will have to manage US support carefully as there is a reciprocal trade agreement with America, Razzaque also said.

On the other hand, Bangladesh may obtain support from the EU and UK more easily, the economist also said.

Md Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry, said Bangladesh needs the deferment as businesses are in big trouble.

“I am very hopeful that Bangladesh’s LDC graduation deferment will take place as it is needed for us,” he added.

He said that if the deferment does not take place, Bangladeshi trade and business will face a lot of trouble as they are not ready for a smooth graduation.

Finance ministry officials said the national committee on LDC graduation has also held a final preparatory meeting on the deferment proposal at the ministry.

A good number of ministers, advisers and secretaries from different ministries attended the meeting, chaired by Finance Minister Amir Khosru Mahmud Chowdhury.

Ministry officials also said Prime Minister Tarique Rahman may lead the Bangladesh delegation at the 81st session of the UNGA, although the schedule has not been fixed yet.