Bangladesh has resolved 48 of 61 non-tariff barriers identified in bilateral trade with the European Union (EU), while work is underway to address the remaining 13, Commerce Minister Khandakar Abdul Muktadir said today (6 September).

He disclosed the information at a joint press briefing at the Commerce Ministry in Dhaka following a meeting with officials of the EU Delegation to Bangladesh.

EU Ambassador Michael Miller, Adviser to the Finance and Planning Ministry Rashed Al Mahmud Titumir, State Minister for Foreign Affairs Shama Obaid, State Minister for Planning Zonayed Abdur Rahim Saki and senior officials of the commerce and foreign ministries attended the briefing.

The commerce minister said the EU had earlier raised concerns over several non-tariff barriers affecting bilateral trade. Of the 61 issues identified, 48 have been resolved, while efforts are continuing to address the remaining 13.

He said an EU delegation led by the bloc's ambassador had raised several specific trade-related obstacles in March after the government took office.

Since then, coordinated efforts involving the National Board of Revenue (NBR) and the agriculture, fisheries and livestock, and shipping ministries, among others, had helped resolve most of the issues.

Among the barriers addressed were complications over licence renewals for 100% foreign-owned logistics companies, an increase in the annual limit for importing commercial samples from $10,000 to $20,000, and customs valuation issues involving scanning smart cards used for export traceability.

The minister also said Bangladesh had formally sought EU support for its proposal to defer graduation from the least developed country (LDC) category by three years.

He expressed hope that the EU would support the proposal and that it would eventually be approved.

Muktadir said the issue is expected to come up for a decision at the 81st session of the United Nations General Assembly this month.

He said Bangladesh had therefore sought EU cooperation in support of the proposal.

The minister added that recommendations from the UN Committee for Development Policy (CDP) and the Economic and Social Council (ECOSOC) regarding the deferment proposal had been positive.

Preparations are also advancing for talks with the EU on a free trade agreement (FTA) and an investment protection agreement.

EU Ambassador and Head of Delegation Michael Miller said the European Commission had responded positively to Bangladesh's formal proposals for both agreements.

He said joint technical discussions could begin as early as this week once the necessary approvals from EU member states are completed.

Miller said a transparent, stable and competitive business environment would be necessary to deepen economic cooperation between Bangladesh and the EU.

He added that both sides would benefit from greater transparency and fair competition in public procurement.

The ambassador also expressed hope that discussions on Airbus procurement would move forward as part of efforts to expand aviation and trade cooperation between Bangladesh and the EU.

Responding to a question on imports from the United States, the commerce minister said Bangladesh makes import decisions based on national interest, economic rationale and public need.

He said government procurement decisions involving energy, including LNG, and foodgrains are approved after considering competitive prices, product quality and wastage rates.

Bangladesh's trade policy is not driven by the influence of any particular country, he said, adding that the country's economic interests and public welfare remain the main considerations behind such decisions.

European Union’s Ambassador Michael Miller yesterday called on the government to ensure a level playing field in Biman Bangladesh Airlines’ aircraft purchase, as the government is set to buy Boeing planes over European rival Airbus.

Speaking at a press conference following a meeting on non-tariff barriers in trade between Bangladesh and the EU at the commerce ministry, he also said the bloc was ready to launch formal negotiations towards signing a Free Trade Agreement (FTA) soon.
In response to journalists raising the issue of Biman’s aircraft purchase, the EU envoy said Bangladesh should take “public procurement” decisions “on the basis of commercial merit”.

“Our economic operators are able to compete as best they can with the economic operators from any given country,” Miller said.

“Actually, to get the best value for your taxpayers’ money, in our view, Airbus has an incredibly competitive offer. It should be taken very seriously and we look forward to the very swift conclusion of negotiations between Airbus and Biman,” the ambassador added.

A prospective Airbus deal had gained traction in 2023 through high-level European engagement. Under the previous Awami League government, a decision to buy 10 Airbus planes had been announced, but the interim government shifted towards Boeing after Sheikh Hasina’s ouster in August 2024 and amid pressure over US tariffs.

Later, Biman signed a $3.7 billion deal with Boeing on April 30 to acquire 14 aircraft, concluding more than three years of competition between Boeing and Airbus for the airline’s next major fleet order. Days later, Airbus submitted a fresh proposal to sell Biman 10 aircraft, which Biman was reportedly evaluating.

FTA TALKS AFTER ‘VALIDATION’ FROM EU MEMBERS

Speaking on the signing of an FTA, Miller said Bangladesh has requested for talks regarding an FTA and an investment protection agreement with the EU.

The European Commission president has already told Prime Minister Tarique Rahman that the EU is ready to explore where the common ground exists for the FTA, according to Miller.

He said negotiations on both the FTA and an investment protection agreement would begin once EU member states complete a validation process expected later this week.

He said such agreements typically cover a wide range of areas beyond tariffs, including e-commerce, intellectual property protection, and trade and human rights.

On Bangladesh’s request for support on a three-year deferment of its Least Developed Country (LDC) graduation, Miller said the EU has been discussing the frictions in the relationship and the steps the government has taken or plans to remove them.

“At a moment when the international rules-based order is under incredible pressure, we are your reliable partners,” he said.

“We believe in the rule of law, we believe in fair and transparent procedures, we believe in multilateralism, all of which should be music to the ears of Bangladeshi colleagues, businessmen and citizens,” he added.

Meanwhile, Commerce Minister Khandakar Abdul Muktadir said Bangladesh has resolved 48 of 61 non-tariff barriers raised by the EU and is processing solutions for the remaining 13, after the EU flagged them in March.

A decision on Bangladesh’s request for LDC deferment is expected at the UN General Assembly’s 81st session later this month.

Talks to launch FTA negotiations may begin in the near future, he added.

The minister also mentioned two recent US purchases as examples of value-based procurement.

He cited an American company’s offer to supply 117 LNG cargoes through 2038 at an average price of around $9, based on index pricing, which the cabinet committee on government purchase approved.
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“We considered that to be a good offer, so we approved it,” he said,

The minister also cited wheat imports from the US. “Compared with wheat that we import from other sources, the percentage of wastage in that wheat is much lower. If you translate that into monetary value, it becomes more cost-effective.”

He said when it comes to making purchase decisions, instead of just considering the face value, several factors have to be taken into account, including overall savings, the long-term benefits.

“Whenever we make any purchase – from America, the European Union, or anywhere else, including China or India – we try to apply our best judgment based on the merits of each purchase individually,” the minister added.

Thailand said Friday it would introduce clearer rules on AI data centres to regulate the fast-growing sector, and urged almost 50 sites currently under construction to hold the projects until then.

As demand for artificial intelligence heats up, tech giants are racing to invest billions of dollars in Southeast Asia, attracted by a growing plugged-in user base.

But the rapid expansion has outpaced regulation and concerns are growing across the world about the centres' impact on the environment, including their use of electricity and water, and local communities.

"Thailand is attracting interest from both local and foreign investors... We need to ensure alignment with laws, standards and the national interest," said Prime Minister Anutin Charnvirakul.

Regulations would be revised to make them "airtight" and prioritise public safety, he said at the first meeting of a new government committee on data centres.

Around 35 data centres are currently operating in Thailand, according to Danucha Pichayanan, secretary-general of the government's National Economic and Social Development Council.

Another 49 are under construction, 11 projects have been approved and 117 more are under review, he said.

"We don't have the power to suspend the construction of the 49 data centres" until the new rules are drawn up, Danucha told AFP.

"They are only asked for cooperation, if they would like to halt their construction pending the clearer regulations, which are expected next month."

New data centres -- warehouse-like facilities that store online files and power AI tools from chatbots to image generators -- are springing up worldwide, and the sector is growing particularly fast in Asia.

Microsoft announced in March it would invest more than $1 billion in cloud and AI data centre infrastructure and operations in Thailand over the next two years.

The news followed Google's launch in January of a new "cloud region" in Bangkok, with data centres that would contribute more than $40 billion to Thailand over five years.

But there are concerns in Thailand that the lack of rules up to now has allowed centres to pop up without proper consideration or regulation.

On Thursday, the energy ministry raised concerns over a Bangkok data centre it said was stockpiling 200,000 litres of diesel in underground tanks without permission.

Bangkok Governor Chadchart Sittipunt said the capital had received six applications for standalone data centres, three of which have been operating since 2022, with the other three paused pending review.

Bangladesh Bank Governor Mostaqur Rahman has said 25% of loans under its low-cost, easy-term pre-finance schemes would be disbursed this month, with full disbursement completed by December.

The impact of the low-cost financing on the economy would become visible next year, he said at a programme titled "A Cashless Ecosystem for Financial Inclusion" organised by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) in Dhaka today (3 September).

Mostaqur said agriculture and small and medium enterprises had been given priority under the pre-finance schemes, with a particular focus on reaching borrowers in rural areas.

"We will disburse 25% of the funds under the schemes this month and complete the disbursement by December. Its impact on the economy will be visible next year," he said.

The Bangladesh Bank earlier announced a Tk60,000 crore "Stimulus Package-2026" to facilitate credit flow to the private sector and support economic expansion.

Speaking about the Bangla QR payment system, the governor at the event said several large companies had sought an extension before its implementation deadline, but the central bank had refused to grant additional time.

"I had made it clear that not a single extra day would be given. Had they failed to comply, the regulator would have shut them down," he said. The government will make Bangla QR codes mandatory for obtaining trade licences in the future, he added.

According to the governor, the number of Bangla QR merchants has increased from around 8 lakh when the system was launched to 32 lakh currently.

He said wider adoption of Bangla QR could help curb extortion and increase government revenue by bringing more transactions into the formal financial system.

On inflation, Mostaqur said persistent high inflation had previously limited the scope for cutting the policy interest rate. He said he had examined inflation data and found scope for improvement in the way the data were generated.

"There was pressure because inflation was so high that the policy rate could not be reduced," he said, adding that inflation had not fallen as expected partly because of price pressures in two major products, without specifying them. He expressed optimism that inflation could eventually be brought down to around 7%.

Bangladesh’s fossil fuel import bill could rise by up to USD 2.8 billion in 2026, adding pressure on the country’s economy and raising energy security concerns as the current supply crisis risks deepening long-term dependence on imported gas, a new analysis by international research group Zero Carbon Analytics (ZCA) showed.

ZCA estimates that the additional imported fossil fuel spending in 2026 is equivalent to the cost of installing around 8 GW of rooftop solar, enough to increase generation capacity by around 25% on Bangladesh’s current 32 GW power grid.

Bangladesh’s LNG imports between January and August 2026 were nearly 13% lower than during the same period in 2025.

The sharpest decline came between July and August, when imports plunged by around 83%, from 0.63 million tonnes to 0.11 million tonnes, amid disruptions to supplies through the Strait of Hormuz.

But lower imports have not meant lower costs. If oil, gas and coal prices remain at the January–August average for the rest of the year, ZCA estimates Bangladesh’s fossil fuel import bill could be around 30% higher than in 2025.

The additional cost would be equivalent to around 10% of Bangladesh’s trade deficit and could add pressure on the taka, inflation and borrowing costs. If current fuel prices persist, ZCA estimates the country’s import cover could fall from 5.7 to 5.2 months, it said.

Around 64% of Bangladesh’s electricity generation depends on gas, leaving the power system highly exposed to LNG supply disruptions.

On 11 August, the power supply shortfall reached 3,592MW - around 20% of demand at the time.

The supply crunch is already affecting households and major industries. Some rural areas have reportedly experienced power outages lasting eight to 10 hours a day.

Bangladesh’s exposure reflects its growing reliance on imported energy. In 2023, around 46% of the country’s total energy supply was imported, while imports met 65% of its power needs in FY2024–25.

Nearly two-thirds of Bangladesh’s LNG supplies in 2025 passed through the Strait of Hormuz.
Doubling down on imported gas

To address immediate shortages, Bangladesh has sought LNG from multiple suppliers and the spot market.

The government approved two spot LNG cargoes for August and September and procured another eight cargoes from suppliers in the UK, Australia, Malaysia and Oman. It has also sought additional diesel supplies from India.

At the same time, Bangladesh is making longer-term commitments to imported gas, including an agreement to purchase 117 LNG cargoes from the United States between 2026 and 2038.

Long-term contracts, however, do not eliminate supply risks. Three major LNG suppliers to Bangladesh have declared force majeure on contractual obligations amid the current crisis, while the International Energy Agency projects a cumulative global LNG supply loss of around 140 billion cubic metres through 2030.

ZCA’s analysis points to rooftop solar as one option for reducing Bangladesh’s exposure to imported fuels and international price volatility.

Renewables accounted for just over 5% of Bangladesh’s electricity generation in 2025, with installed renewable capacity reaching 1.49GW.

According to IEEFA, a 1MW rooftop solar installation could save around $180,000 a year in imported fuel costs.

Bangladesh needs to add around 760MW of renewable energy capacity each year through 2030 to meet its 20% renewable electricity target. Yet only 358MW of renewable projects were under construction as of February 2026.

The Bangladesh Bank has widened the scope of financing against foreign currency deposits held with Offshore Banking Units (OBUs), allowing such balances to be used as collateral for a broader range of loans in local currency.

The central bank issued a circular today (3 September) modifying existing provisions on the use of balances held in private foreign currency accounts and non-resident foreign currency deposit accounts as collateral.

According to the circular, issued by the Foreign Exchange Policy Department-1, balances held in private foreign currency accounts and non-resident foreign currency deposit accounts maintained under Sections I and II of Chapter 13 of the Guidelines for Foreign Exchange Transactions (GFET) may now be used as collateral against short-term working capital financing in local currency to resident companies, firms and individuals.

The balances can also be used as collateral against short-term finance or consumer finance in local currency for resident persons and non-resident Bangladeshis (NRBs), subject to compliance with existing regulatory instructions.

Previously, the provision allowed such foreign currency balances to be used as collateral only against short-term working capital financing in local currency for resident companies, firms and individuals.

The latest move is aimed at widening financing options against foreign currency balances maintained with OBUs and providing greater access to local-currency financing against such deposits.

The circular referred to an earlier Foreign Exchange (FE) Circular No 27, issued on 3 July 2025, under which OBUs could allow foreign currency deposits of non-resident account holders to be used by their respective Domestic Banking Units (DBUs) as collateral against financing to resident companies, firms and individuals.

It also reiterated that balances held in private foreign currency accounts and non-resident foreign currency deposit accounts may be used as collateral in accordance with the relevant provisions of the Foreign Exchange Regulation Act, 1947 and the GFET.

Bangladesh Bank said all other instructions contained in the earlier circular would remain unchanged.

Aamra Networks Limited has recommended a nominal 0.10% cash dividend for its general shareholders only for FY2025, which amounts to just 1 paisa per share.

The announcement follows a disastrous financial year for the IT sector company, during which its earnings plummeted by 94%, and it struggled with a deepening cash flow crisis that has already relegated it to the "Z" category on the stock exchange.

According to the company's financial statements finalised in a board meeting on 3 September, the total dividend payout for general shareholders will amount to a mere Tk6.22 lakh against 6.22 crore shares.

In a move to preserve some liquidity, the company's sponsors and directors, who hold 3.07 crore shares, will not receive any portion of this dividend.

This token gesture places Aamra Networks among the lowest dividend-yielding companies on the Dhaka Stock Exchange, mirroring recent ultra-low payouts from firms like Acme Pesticide and National Feed Mill.

The company's financial health appears to be in a tailspin. For the 2024-25 fiscal year, the earnings per share (EPS) fell to a negligible Tk0.13, down from significantly higher levels in the previous year. The fourth quarter alone, spanning April to June 2025, saw the company incur a net loss of Tk5.95 crore.

The downturn showed no signs of abating in the 2025-26 fiscal year either. For the July-March period, revenue dropped by 22% to Tk55.85 crore, culminating in a nine-month net loss of Tk4.12 crore.

Management attributed this sharp decline to a combination of falling sales and a rise in operating expenses. However, internal sources point to a more systemic issue. A senior official from Aamra Networks, speaking on condition of anonymity, revealed that the company is facing an acute fund crisis driven by the non-recovery of dues from corporate clients. Since the company primarily serves large businesses, the failure of these clients to clear payments for services rendered has crippled the firm's cash flow.

This is reflected in the net operating cash flow per share, which stood at a negative Tk0.55 at the end of March 2026.

The 1 paisa dividend carries significant regulatory weight. Under current rules, a company declaring any dividend up to 5% is placed in the "B" category, while those paying 10% or more are eligible for the "A" category.

Moving out of the "Z" category is crucial for the company, as both "A" and "B" category stocks are eligible for margin loan facilities under the BSEC's new regulations.

Aamra Networks was downgraded to the junk category in February 2025 after it failed to disburse a previously approved 10% cash dividend for the 2023-24 fiscal year.

However, the path back to the "B" category remains complicated. The company failed to hold its Annual General Meeting (AGM) for the 2024-25 fiscal year within the legally stipulated time. Consequently, the date for the upcoming AGM is subject to consent from the honorable High Court. The record date for the 1 paisa dividend has been set for 24 September.

Aamra Networks had previously been an active player in the capital market, raising Tk56.25 crore through its initial public offering in 2017 and a further Tk93 crore through a rights offer in 2024 for business expansion.

Despite these capital injections, the company's recent operational paralysis has left investors wary. On Thursday, its shares closed marginally higher at Tk19.80, though market analysts warn that the company's reliance on "paper profits" and its struggle to collect actual cash from clients remains a major red flag for the bourse, according to the market insiders.

Years of overfishing, destructive fishing practices and damage to marine habitats are depleting Bangladesh’s fish stocks, with catches of hilsa and other marine species falling sharply.

The decline is increasingly hitting fishermen’s livelihoods, as poorer catches leave them struggling to cover fuel, food and other costs of each trip.

During a recent visit to the Alipur fish landing centres, Mizan Hossain, owner of the trawler FB Nurjahan, said its catch this year was at least 40 percent lower than last year.

He blamed widespread trawling in the sea.

“Trawling nets catch fish of all sizes and species. The smaller fish die as soon as they are caught in the nets,” he said.

Fazlu Gazi, former president of the Mahipur Fishermen’s Association near Kuakata, said hilsa catches this year were the lowest he had seen in four to five years.

“We give fishers advance payments every year. With catches falling so sharply, we are struggling even to recover that money,” he said.

Patuakhali District Fisheries Officer Bijoy Nandi also acknowledged a sharp decline in catches, saying it was not limited to hilsa.

“Hilsa catches have fallen significantly, and catches of other marine fish have also declined,” he said. “By our estimate, overall fishing is down by about one-third from last year.”

The situation is similar in Cox’s Bazar. Ismail Hossain, owner of Shah Jabbaria Fish Enterprise, said trawlers once brought 1.5 to 2 tonnes of hilsa from a single trip. Now, several trawlers are needed to collect the same quantity.

Each trip costs around Tk 4 lakh, including fuel and other expenses. Although trawlers catch other species, the overall haul is often so low that many operate at a loss, he said.

Mohammad Ramiz, known as Ledu Majhi, a Kutubdia resident who operates a trawler owned by Mahiuddin Company, said fishermen are spending long hours at sea for little return.

“There are hardly any fish in the sea. We cast our nets and wait for hours, but often catch very little,” he said.

Since the 65-day fishing ban ended on July 23 this year, his trawler has made 10 trips, spending about Tk 40 lakh and earning roughly Tk 42 lakh from fish sales. In the past, a trawler could land fish worth Tk 10 lakh to Tk 40 lakh on a single trip, he said.

Ledu blamed the decline partly on the growing use of trawling in shallow waters.

Once largely confined to large vessels operating in the deep sea, trawling is now also being used by wooden trawlers in shallower areas, causing damage to marine habitats and killing juvenile fish and even fish fry.

The fishermen’s experience is reflected in official data. According to Department of Fisheries (DoF) figures, Bangladesh’s marine fish catch rose steadily from 5.17 lakh tonnes in FY2009-10 to a record 7.06 lakh tonnes in FY2021-22.

The figure has since declined for four consecutive years. The provisional FY2025-26 figure of 5.15 lakh tonnes would be the lowest in 16 years, down 27 percent from the peak.

Mohammed Shariful Azam, senior assistant director of the blue economy section at the DoF, said the decline was closely linked to falling hilsa catches, which account for nearly 40 percent of the marine catch.

Talking to The Daily Star, Shariful identified pollution, changes in river and marine habitats, and overfishing as major factors behind the decline in hilsa.

Pollution is degrading rivers and breeding grounds, reducing the hatching and survival of hilsa juveniles, he said. Underwater shoals and sandbars, locally known as dubchar, have also formed in several areas, making migration routes shallower and obstructing hilsa movement between the sea and rivers.

Overfishing is adding to the pressure. More than 85 percent of the country’s roughly 30,000 artisanal fishing boats target hilsa, while years of excessive harvesting have depleted the stock.

The problem extends beyond hilsa. Shariful said the widespread use of behundi jal, or estuarine set bag nets, indiscriminately catches marine fish, particularly fry and juveniles. Despite repeated enforcement drives, controlling their use remains difficult.

Monofilament gillnets and illegal trawl doors and nets used in areas such as Barguna, Patuakhali and Kalapara are also contributing to the depletion of fish stocks, he added.

Shariful said marine fish stocks could gradually recover if fisheries management is strengthened, sea patrols intensified and fishing bans enforced more effectively. However, rebuilding depleted stocks would take several years.

He identified vessel tracking as a potential tool for strengthening monitoring. The Fisheries Monitoring Centre in Chittagong could play a key role if fishing boats are brought under a tracking system.

Discussions are underway with Bangladesh Satellite Company on the initiative, which Shariful described as a potentially major step. He also stressed the need to raise awareness among fishermen and boat owners.

Bangladesh Bank (BB) is set to introduce an “e-Payment Credit” facility, likely today, to promote cashless payments and help customers manage temporary cash shortages.

Under the facility, eligible customers will be able to borrow between Tk 50 and Tk 10,000 to meet essential expenses through digital payments, according to BB officials.

The credit can be used to pay utility bills, mobile recharges, education and healthcare expenses, travel costs, taxes and government service fees, deposit instalments and insurance premiums.

Banks will initially pilot the facility for at least six months before launching it commercially. A commercial rollout will require an assessment of the pilot and approval from the respective bank’s board.

The facility is strictly for digital payments. Customers cannot withdraw the credit as cash, transfer it to a bank account or add it to a mobile wallet. The approved amount must be paid directly to the designated biller through an authorised digital payment channel.

Repayment periods will be seven, 15 or 30 days, with banks charging a prescribed service fee instead of interest.

For credit of Tk 50-Tk 250, the maximum service fee will be Tk 3 for seven days, Tk 4 for 15 days and Tk 6 for 30 days. For credit of Tk 7,001-Tk 10,000, the maximum fees will be Tk 35, Tk 70 and Tk 130, respectively.

Customers who repay on time will not face any additional interest or early-settlement charges. Penalties may apply to overdue payments but cannot exceed the applicable daily service fee.

Banks must complete the entire process -- including onboarding, credit approval, payment and repayment -- digitally, using secure authentication methods such as one-time passwords and two-factor or multi-factor authentication.

Banks may partner with mobile financial service providers, payment service providers and fintech firms to operate the facility.

The scheme will remain subject to BB’s rules on loan classification, risk management, customer protection, anti-money laundering and data security.

The large-scale manufacturing rebounded sharply with a 14.5-percent expansion in June, the final month of the fiscal year 2026, according to official statistics.
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It provides a stronger-than-expected end to a volatile 2025-26 fiscal year marked by repeated contractions amid economic uncertainty.

The June spike in the Index of Industrial Production (IIP) of large-scale manufacturing suggests that the country's industrial sector may be regaining momentum after a prolonged period of weakness.

Large-scale manufacturing accounts for more than 11 per cent of gross domestic product or GDP of the country, making its performance an important indicator of broader economic activity.

The rebound, however, was not broad-based.

Much of the June growth came from the clothing industry, which carries a dominant 61-percent weight in the manufacturing index.

The textile sector, the second-largest component with an 11 -percent weight, remained almost stagnant during the month.

The concentration of growth in garments raises questions about the strength of the wider industrial recovery.

While the performance of the clothing industry provided a substantial liftoff to the overall index, several other manufacturing segments continued to struggle, suggesting that the recovery remains uneven.

"The manufacturing sector had a difficult fiscal year," says Dr. Zahid Hussain, an independent economist.

He goes on to say that industrial activity contracted in several months amid political uncertainty, the national elections and the fallout from geopolitical tensions, including the crisis in the Middle East centred on Iran.

Some industries are benefiting from stronger demand and export opportunities, while others continue to face subdued consumption, high production costs, financing constraints or weak investment.

The sharp rise in June, therefore, needs to be viewed in the context of the sector's performance over the entire fiscal year rather than as evidence of a fully established recovery.

The sector recorded negative growth in October, November, December, February, March and May. January and another month recorded virtually flat performance.

As a result, the strong June expansion came after months in which manufacturers faced weak demand, uncertainty over investment and disruptions to business activity.

Against this backdrop, the June increase of 14.5 per cent is significant.

It marks a sharp turnaround from the contractionary trend seen during much of the fiscal year and could indicate that manufacturers are responding to improving business conditions and stronger external demand, particularly for export-oriented products.

Among the 23 major manufacturing groups, a number of industries recorded noteworthy performances during June. The goodies include food products, leather, chemicals, pharmaceuticals, rubber and plastics, basic metals, electrical equipment, machinery, motor vehicles, other transport equipment, furniture and other manufacturing.

The performance of these industries points to some degree of breadth in the June recovery, although the dominant contribution from garments means the overall picture remains heavily influenced by one sector.

Several industries, meanwhile, continued to perform poorly. Among the baddies named are beverages, tobacco, wood products, paper and paper products, fabricated metal products, computers and electronics, and printing.

World ​food prices rose in August to their highest since late 2022, as adverse weather and ‌war disruption in the Black Sea heightened concern over supply of staples, the United Nations’ Food and Agriculture Organization said on Friday.

Extreme heat and drought in Europe, the threat of a severe El Nino weather pattern and trade upheaval caused by the Ukraine ​and Iran wars have unsettled agricultural markets, pushing grain prices to three-year highs and sugar to a one-year ​peak.

The FAO Food Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 133.3 points in August, up from July’s revised reading of 130.8.

That was the highest ​score since November 2022, though nearly 17 percent below a record peak from March 2022, after Russia’s full-scale invasion of ​Ukraine.

“August’s increase in global food prices is a warning that the risk premium is returning to food markets: climate shocks, geopolitical tensions and disrupted trade logistics are converging to tighten supply expectations,” FAO Chief Economist Maximo Torero said in a statement.

The FAO’s ​price benchmarks for cereals, vegetable oils, sugar, meat and dairy all rose in August.

The extreme weather in Europe ​affected prospects for the maize (corn) and sugar beet harvests as well as livestock output, while the anticipated El Nino phenomenon ‌fuelled concerns for palm oil and sugar output in Asia, it said.

Escalating attacks in the Black Sea have curtailed grain shipments from Russia and Ukraine in their 4-1/2-year-old war, while the US-Iran conflict was straining flows of fertiliser for crops.

Among food categories, FAO’s cereals price index rose 2.2 percent month-on-month to its highest since May 2024, and the vegetable oil index edged up ​0.6 percent to its highest since June 2022.

The agency’s sugar benchmark jumped 11.9 percent to its highest since June 2025, with lower production in Brazil’s crucial center-south region adding to weather concerns in Europe and Asia.

In a separate report, the agency cut its 2026 global cereal production forecast by 3.4 million metric tons from a previous estimate in July to 2.980 billion tons, now 2.0 percent below 2025 in the largest annual decline since 2018.

Projected output would still be the second-largest on record, however.

Forecast world cereal stocks at the close of 2026/2027 were revised down 1.1 percent to 947.2 million tons, now only marginally above the previous season.

A reduced estimate of coarse grain stocks outweighed an upward revision for wheat that reflected an anticipated build-up in Russian and Ukrainian stocks due to shipping disruption, the FAO said.

Bangladesh retained the second position in garment exports to the US market in the January-July period this year as China’s apparel exports to the American market fell at their steepest rate.

Earlier, in January-February this year, Bangladesh overtook China for the first time in garment shipments to the USA as the Trump administration imposed higher tariffs on imports of Chinese garment items.

Also, in the January-July period of this year, Bangladesh retained its position although the country’s garment exports to the USA fell 6.50 percent year-over-year to $4.66 billion because of lower demand for locally made apparel in the American market, according to data from the Office of Textiles and Apparel (OTEXA), the data provider of global apparel imports by the US.

In July this year alone, Bangladesh’s garment exports to the US fell 10.73 percent, according to the OTEXA data.

Also, overall US apparel imports fell 8.65 percent year-on-year in January-July 2026, totaling $41.83 billion.

China’s shipments of apparel to the US fell 34.21 percent year-on-year to $4.55 billion, while in the case of India, they fell by 25.77 percent to $2.45 billion, and Pakistan’s by 5.60 percent to $1.26 billion.

At the same time, garment shipments from Vietnam fell by 1.03 percent to $9.36 billion.

Meanwhile, Indonesia posted a gain of 2.76 percent year-on-year to $2.74 billion and Cambodia a rise of 10.48 percent to $2.62 billion, the OTEXA data also said.

By piece count, Bangladesh, China and India’s apparel exports to the US fell by 4.34 percent, 24.17 percent and 24.02 percent, respectively.

But unit prices increased to some extent for Vietnam, Indonesia and Cambodia.

Unit prices fell across the board, led by China at 13.24 percent, and in the case of Bangladesh, the rate fell by a moderate 2.26 percent.

Chattogram customs house saw a strong rebound in revenue collection in August, with receipts rising 29.20% year-on-year to Tk7,092 crore after a 6.78% decline in July.

According to customs revenue statistics, the collection was Tk5,489.27 crore in August last year, meaning receipts increased by Tk1,602.73 crore this year.

The surge lifted cumulative revenue collection in the first two months of FY2026-27 to Tk14,017.68 crore, up 8.51% from Tk12,918.65 crore during the same period a year earlier.

However, the customs house remains well short of its two-month revenue target of Tk21,530.34 crore. The Tk14,017.68 crore collection leaves a deficit of Tk7,512.66 crore.

Revenue collection in July stood at Tk6,925.68 crore, down from Tk7,429.38 crore a year earlier.

The sharp turnaround in August came as port operations and import-export activities gained momentum, helping customs revenue recover from the sluggish start to the fiscal year.

"Revenue growth in August is positive. We are trying to make customs operations more dynamic to maintain this trend," Sharif Mohammad Al Amin, assistant commissioner and spokesperson for Chattogram Customs House, told TBS.

"Revenue collection depends heavily on import activities. If imports remain normal and the current growth trend continues, there is an opportunity to achieve the target," he added.

August rebound offsets July decline

The August increase more than offset July's year-on-year decline, leaving cumulative revenue Tk1,099.03 crore higher than in the corresponding period of FY2025-26.

Customs officials said import activity is a key determinant of revenue collection, as duties and taxes on imported goods account for a major share of Chattogram Customs' receipts. The value and volume of imports, along with applicable duties and taxes, directly affect collections.

Tk81,471cr collected last fiscal year

Chattogram Customs House collected Tk81,471.37 crore in FY2025-26, registering 12.37% growth from the previous fiscal year.

As Chattogram Port handles the bulk of Bangladesh's international maritime trade, its import activity has a direct bearing on customs revenue.

The strong August performance offers some relief after July's decline. But with a Tk7,512.66 crore shortfall against the two-month target, customs will need sustained revenue growth in the coming months to close the gap.

Modernising and expanding refining capacity of Eastern Refinery Limited, the country's lone facility for converting crude oil into refined petroleum products, is finally set to see the light of day. Besides directly reducing Bangladesh's reliance on imports generally in the energy sector, particularly for refined petroleum.

The Jeddah-based Islamic Development Bank (IsDB) will provide over $1 billion in financing for the modernisation project.

A financing agreement titled "Modernisation and Expansion of Eastern Refinery in Bangladesh" was signed between the Government of Bangladesh and the IsDB on Thursday (3 September).

Dr Md Mizanur Rahman, Additional Secretary of the Economic Relations Division (ERD), signed the agreement on behalf of Bangladesh, while Anasse Aissami, Director General of Country Programs, signed for the IsDB.

Prime Minister Tarique Rahman and IsDB Group Chairman Dr Muhammad Al Jasser were present at the signing ceremony.

The ERD stated that the project will be implemented by Bangladesh Petroleum Corporation (BPC) under the Energy and Mineral Resources Division.

This funding is set to elevate the ongoing development partnership between Bangladesh and the IsDB, which operates as an instrument of the Organisation of Islamic Cooperation (OIC) to new heights. According to the ERD, this marks the largest investment in a single project by the IsDB till now in Bangladesh.

Upon implementation, the refining capacity of Eastern Refinery – the country's primary oil refinery – will treble from the current 15 lakh tonnes to 45 lakh tonnes per annum.

The government expects the project to enhance fuel supply capacity, reinforce national energy security, and enable the production of eco-friendly Euro-5 standard petroleum products.

Tripling the refinery's capacity will significantly decrease Bangladesh's dependence on imported refined oil, thereby saving foreign currency and ensuring stability in the domestic energy supply chain.

Commitment to Continue Support

As one of Bangladesh's key multilateral development partners, the IsDB has historically extended support through grants, project loans, trade financing, private sector funding, and export credit guarantees.

Following the agreement signing, IsDB Group Chairman Dr Muhammad Al Jasser paid a courtesy call on Prime Minister Tarique Rahman, reiterating the bank's commitment to supporting Bangladesh's development priorities.

During the meeting, the prime minister emphasized the importance of concessional financing and assured full government cooperation to deepen the partnership between Bangladesh and the IsDB.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have separately urged the government to suspend or withdraw a new restriction on knit fabric imports under the country's Import Policy Order 2026–2029.

In letters to the Ministry of Commerce, the two trade bodies raised concerns over Sub-clause 12 of Clause 25 of the policy, which states that "knit fabrics shall not be eligible for import".

They warned that the restriction could disrupt the normal operations of export-oriented readymade garment (RMG) factories and weaken their ability to meet international buyers' requirements.

In a letter to the commerce minister on 1 September, BGMEA President Mahmud Hasan Khan said global buyers regularly demand new products, specific quality standards, customised designs and faster delivery.

Factories often need to source specialised fabrics from overseas suppliers to meet those requirements, he said.

Restricting such imports could disrupt factory operations because certain grades, colours, textures and designs demanded by international buyers are not always available in the local market, according to the BGMEA.

BKMEA President Mohammad Hatem also called for the provision to be suspended or withdrawn.

He said imported knit fabrics had already arrived at Chattogram Port, with some shipments kept in open storage, while many exporters had completed the required import formalities.

The new restriction could create serious complications in clearing those shipments and fulfilling scheduled export orders, Hatem said.

He added that the measure would further increase pressure on factories already facing production disruptions due to ongoing gas shortages.

The Bangladesh Securities and Exchange Commission (BSEC) has started discussions with major local and foreign companies and business groups to bring fundamentally strong and reputed companies to the capital market through direct listing.

As part of the initiative, the commission held a meeting with representatives of leading companies and business groups at its Agargaon office today (3 September) to discuss ways to bring such companies to the market through direct listing.

Representatives of Unilever, Nestlé Bangladesh, MetLife, bKash, Banglalink, KAFCO, Incepta Pharmaceuticals, Nagad, Meghna Group, PRAN-RFL, DBL Group, Abul Khair Group, ACI, Walton, Akij Resources and Confidence Group, among others, attended the meeting.

BSEC Chairman Masud Khan said the number of strong companies in Bangladesh's capital market remains inadequate. The commission therefore wants to bring reputed flagship companies to the market through direct listing to deepen and broaden the capital market.

He said greater participation by large and quality companies would help attract both domestic and foreign investment while creating more quality investment opportunities.

The BSEC has already approved the draft "Bangladesh Securities and Exchange Commission (Direct Listing of Securities on the Stock Exchange) Rules, 2026". The commission approved the draft at its 1,027th meeting on 1 September.

Under the proposed rules, eligible companies will be able to list directly on the stock exchanges by offloading shares held by existing shareholders, without issuing new shares through an initial public offering (IPO).

At today's meeting, the BSEC presented the eligibility criteria for direct listing, application and listing requirements, and the proposed price discovery process.

Representatives of companies, merchant banks, issue managers, stock exchanges and other stakeholders shared their views and recommendations on various aspects of the proposed rules. Discussions focused on bringing capable and reputable companies to the market while ensuring investor protection and maintaining market discipline.

Masud said listing on the capital market enhances a company's reputation and acceptability. It can also improve share liquidity and create scope for better valuation. Existing shareholders get an opportunity to liquidate their holdings, while the company can eventually raise capital from the market to finance future expansion.

Alongside direct listing, the BSEC is also considering a hybrid approach under which large companies could offload shares held by existing shareholders while issuing new shares to raise fresh capital.

Representatives of several companies expressed interest in entering the capital market through both direct listing and the hybrid approach, which combines the offloading of existing shares with the issuance of new shares.

The BSEC's initiative aims to bring large, fundamentally strong companies that have remained outside the capital market for years under the listing framework. The commission believes greater participation by such companies will increase the number of quality listed firms, deepen and broaden the market, and create more investment opportunities.

Multinational companies operating in Bangladesh must be brought under the capital market, Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan said today (4 September).

The commission will first encourage such companies to voluntarily list on the stock market, but if they refuse, the BSEC has the legal authority to take steps in the public interest, he said while inaugurating a two-day workshop titled "Capital Market Products and Rules" for members of the Capital Market Journalists Forum (CMJF) at Subarna Gram in Narayanganj.

The workshop, organised by the BSEC, is being held on 4 and 5 September.

"There are many large domestic and multinational companies in Bangladesh. Unless these good companies are brought to the capital market quickly, the market cannot develop as expected," Masud said.

He said the BSEC would work to bring several large and flagship companies to the capital market within the next six months to one year.

"Come voluntarily. But if you do not come voluntarily, we also have the weapon to make it happen," he said.

The BSEC chairman said securities law allows the commission to direct certain companies to list in the public interest. A legal definition of "Public Interest Company (PIC)" will also be introduced for this purpose.

Calling on large companies to enter the capital market, Masud said listing gives a company a stronger corporate identity and establishes a market value for it.

That market value can then be used for acquisitions or mergers, while shareholders who want to exit a business can sell their shares more easily, he said.

He also pointed to succession problems in family-owned businesses, saying disputes often emerge among owners when businesses pass from one generation to another, sometimes leading to fragmentation.

Listing can provide an exit option for shareholders who do not want to remain involved in the business, he added.

The BSEC chairman also announced plans to introduce direct listing and a hybrid system to bring large companies to the market more quickly.

He said the existing IPO process takes too long. Under the proposed hybrid system, a company would raise new capital through one portion while directly listing existing shares through another.

Masud said the BSEC plans to introduce "extended audits" to simplify the IPO process.

He said auditors should verify not only whether a company's financial statements are accurate, but also whether its land, machinery, inventory, receivables and supplier information reflect the actual situation.

Under the proposed system, auditors would certify the authenticity of the assets and financial information submitted by IPO applicants. This would help the Dhaka Stock Exchange (DSE) complete its IPO scrutiny process more quickly, he said.

Noting that Bangladesh's capital market remains largely dependent on retail investors, Masud said institutional investment must be increased to make the market sustainable.

The BSEC plans to expand opportunities for provident funds and other funds to invest in shares as well as corporate bonds, he said.

In developed markets, pension funds and insurance companies are major investors, he said, adding that Bangladesh also needs to bring such institutional investors into the market.

Referring to the removal of the floor price after he took office, Masud said the move had prompted global index provider MSCI to move towards withdrawing special measures imposed on Bangladesh's market.

MSCI has said it will resume regular reviews of Bangladesh's index and implementation of corporate events from November 2026, he said.

The BSEC chairman also outlined plans to give the DSE greater powers, modernise market surveillance and introduce an artificial intelligence-based surveillance system.

On the development of the corporate bond market, Masud said the commission was working to reduce main-board listing fees. This would encourage banks and other institutions to list on the main board and gradually expand the country's bond market, he added.

Bangladesh received US$6.046 billion in workers' remittances during July 1 to September 2 of the current fiscal year (FY2026-27), registering an 18.6 per cent year-on-year growth compared to US$5.098 billion during the corresponding period of FY2025-26.

According to Bangladesh Bank data, the country received US$220 million in remittances during September 1-2, 2026, against US$198 million received during the same period last year, showing an 11.4 per cent year-on-year growth.

On September 2 alone, expatriate Bangladeshis sent home US$108 million through formal banking channels.

The sustained growth in remittance inflows is expected to help strengthen the country's foreign exchange reserves and support external-sector stability.

Bangladesh retained the second position in garment exports to the US in the January-July period as China’s apparel shipments to the American market recorded their steepest decline.

Bangladesh first overtook China in January-February as the Trump administration imposed higher tariffs on Chinese garment imports.
It retained the position in January-July despite a 6.50 percent year-on-year decline in garment exports to the US to $4.66 billion, mainly due to weaker demand for locally made apparel, according to data from the Office of Textiles and Apparel (OTEXA), the US provider of global apparel import data.In July alone, Bangladesh’s garment exports to the US fell 10.73 percent.

Overall, US apparel imports declined 8.65 percent year-on-year to $41.83 billion in January-July.

China’s apparel shipments to the US fell 34.21 percent to $4.55 billion, while India’s declined 25.77 percent to $2.45 billion and Pakistan’s 5.60 percent to $1.26 billion.

Vietnam’s shipments fell 1.03 percent to $9.36 billion, while Indonesia and Cambodia posted growth of 2.76 percent and 10.48 percent to $2.74 billion and $2.62 billion, respectively.

Vietnam remained the largest apparel exporter to the US, followed by Bangladesh and China.

Bangladesh is in a relatively better position than some other apparel-exporting countries in terms of tariffs, which is helping boost shipments to the US market, said Shovon Islam, managing director of Sparrow Group.

“Although exports are in a good position, prices declined in January-July as local exporters had to bear part of the reciprocal tariff,” he said.

If the energy crisis is resolved, Bangladesh could perform even better in the US market, Shovon added.

“China is losing market share, and Bangladesh may be able to perform better in the future. In fact, Vietnam is taking more of China’s market in the US, while Bangladesh is taking a smaller share,” said Anwar Ul Alam Chowdhury Parvez, chairman and managing director of Evince Group, which ships a significant portion of its garments to the US.

However, Bangladesh’s ability to retain the position could be challenged by the ongoing energy crisis, he said.

“We are concerned whether Bangladesh can retain this position in the US market as the energy crisis persists in industrial units. Buyers are also well aware of the energy situation,” Anwar said. If the country can ensure adequate energy supplies, Bangladesh may sustain the positive trend, he added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Bangladesh could benefit further as China loses market share in the US, but sustaining growth will require lower production costs and reliable gas and power supplies.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the outlook for garment exports to the US was positive as work orders were rebounding following the finalisation of effective tariff rates for individual countries by the US government.

However, the industry’s focus should not be on export volume alone, but also on how much value local manufacturers retain, he said.

“Obtaining letters of credit from international buyers should not be the main target, as many exporters cannot make even a minimum profit because of high import costs for raw materials such as fabrics and chemicals,” Mahmud said.

Many exporters are also shipping goods below production cost in the hope of making profits later, he said. The BGMEA wants the industry to achieve a retention value of $20 billion if Bangladesh exports $50 billion worth of garments a year, Mahmud added.

The US is Bangladesh’s single largest garment export destination.
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In February, Bangladesh and the US signed the Agreement on Reciprocal Trade (ART), which includes a textile clause. Under the clause, garments made in Bangladesh using US-sourced cotton and man-made fibres could qualify for duty-free access to the US market.

The provision could further strengthen Bangladesh’s competitiveness in the US market if implemented properly.

The country's prolonged gas crisis has pushed the ceramics industry to the brink, forcing some factories to shut production lines while others operate at less than half their capacity.

Industry leaders said more than 30 ceramics, tiles and sanitaryware factories in major industrial belts including Gazipur, Narayanganj, Savar, Dhamrai, Narsingdi, Mymensingh, and Habiganj are facing severe gas shortages.

They said ceramics factories require around 15 pounds per square inch (PSI), but pressure has frequently dropped to 3-4 PSI and, at times, fallen to zero for most of the past month, forcing many factories to operate at only 34-40% capacity.

Overall production in the ceramics sector has fallen to around 35%. The crisis is also driving up production costs, reducing exports, disrupting domestic supplies and prompting foreign buyers to cancel or cut orders.

"If the situation doesn't improve quickly, factories will fall into a severe financial crisis. Imports may also rise as domestic production declines," said Irfan Uddin, secretary of the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA).

Gas accounts for around 12% of ceramic production costs, according to the BCMEA. Kilns require uninterrupted gas supply for about 24 hours as sudden pressure drops can damage or destroy products inside them.

Once a kiln is shut down, it takes another 48-72 hours to restart after gas pressure returns to normal, making intermittent supply particularly damaging for manufacturers.

The disruption is therefore making it increasingly difficult for factories to maintain production, fulfil export orders and ensure regular supplies to the domestic market.

Artisan Ceramics, which exports tableware to Europe and other international markets, has seen its production fall by around 35% because of the gas crisis.

The company's Gazipur factory has a daily production capacity of seven tonnes. It has taken a Palli Bidyut electricity connection as an alternative source of energy to keep production running, but frequent load-shedding is creating additional problems.

"The gas and electricity crisis has increased our production costs by 35-40%," said Mamunur Rashid, chief executive officer of Artisan Ceramics.

"Production has been disrupted due to the gas and electricity crisis, causing exports to fall by around 35-40%. We have also had to reduce the orders we accept. Buyers are becoming frustrated. We are worried whether they will give us orders next year," he said.

Factories shut, workers sent on leave

Great Wall Ceramic Industries' tile factory in Sreepur, Gazipur, has been shut for a week, cutting production by around 40,000 square metres a day. Most workers are sent on leave.

Its sanitaryware factory in Habiganj normally produces about 100,000 toilets, basins and other sanitary products a month. However, its production has fallen by around 35%.

An official of Great Wall said the company normally keeps a tile stock equivalent to one to one-and-a-half months' sales.

"Production has been disrupted for almost a month due to the gas crisis. As a result, we cannot meet market demand, and sales have already declined. If the situation does not improve within the next one or two weeks, sales could come to a complete halt," he said.

Leading ceramics manufacturer RAK Ceramics was forced to shut all four production units for eight consecutive days due to the gas crisis. One unit resumed operations last Friday, leaving the company running at roughly 25% of capacity.

RAK Ceramics Chief Executive Officer Mohammad Khorshed Alam said the company had yet to calculate the losses caused by the shutdown.

The disruption has also hit Mir Ceramics in Sreepur, Gazipur. Three of its four production units have remained shut for 17 days, cutting daily tile output from a capacity of around 300,000 square feet to just 50,000 square feet. Most of the factory's 800 workers are on leave. An official of Mir Ceramics said gas pressure was sufficient to operate only one unit.

Meghna Group of Industries' ceramics factory in Ashariarchar, Sonargaon, Narayanganj, is also struggling with inadequate gas supply.

AKM Ziaul Islam, chief operating officer of Meghna Ceramics Industries, said the factory has a daily tile production capacity of 51,000 square metres, but gas shortages have disrupted output and prevented the company from meeting market demand.

Domestic market at risk

According to BCMEA data, Bangladesh has 76 ceramic factories producing tableware, tiles, sanitaryware and ceramic bricks, including 31 tile factories.

The domestic tile market was worth Tk5,854 crore in FY25, with local companies holding an 82% share. The overall ceramics market stood at Tk8,250 crore in 2024-25 fiscal year.

The sector has attracted around Tk20,000 crore in investment and employs five lakh people. Ceramic factories are located in Gazipur, Mymensingh, Narayanganj, Habiganj and Bhola.

Industry insiders said almost all factories in the affected areas are facing gas shortages, except seven to eight in Bhola and Habiganj with comparatively better supplies.

The affected industrial clusters include Savar and Dhamrai in Dhaka; Rupganj and Meghnaghat in Narayanganj; Kashimpur, Bhabanipur, Bhawal Mirzapur, Sreepur and Mawna in Gazipur; Panchdona in Narsingdi; Bhaluka and Trishal in Mymensingh; and Madhabpur and Bahubal in Habiganj.

Industry executives said most affected factories are operating at only 20-30% capacity.

BCMEA President Moinul Islam said factories outside Bhola and Habiganj were unable to operate at full capacity because of gas shortages.

He said Bangladesh Chamber of Industries (BCI) representatives recently met Industry and Commerce Minister Khandaker Abdul Muktadir to discuss the gas crisis.

"For an industry that has invested around Tk20,000 crore and employs nearly half a million people, manufacturers now fear that a prolonged gas crisis could turn a temporary production disruption into a deeper industrial and employment crisis," he added.