After the IPO market has remained dry for a long time, the securities regulator is optimistic that new primary issues will be floated in the next few months.

Many of the aspiring issuers have already signed agreements with issue managers and are working to prepare financial statements. They include BRB Cables, Solar Equity Venture, Confidence Infrastructure, Super Star Electrical Accessories, and Shoeniverse Footwear.

The companies are yet to fix the amounts to be raised through IPOs or debt securities.

Apart from them, City Group has also signed an agreement with LankaBangla Investments to raise around Tk 15 billion from the capital market. The conglomerate is looking to raise funds through IPO, private equity, preference shares, corporate bonds, Sukuk and/or other permissible capital market vehicles.

"We hope a good number of companies will be listed in the next few months," said Masud Khan, chairman of the Bangladesh Securities and Exchange Commission (BSEC).

Apart from easing the public issue rules, the regulator is set to introduce a hybrid mechanism allowing direct listing and IPO for the same companies.

Talking to the FE, several issue managers said companies were approaching them to learn about the process of going public.

Among the issue managers, ICB Capital Management has signed an agreement with two companies, including BRB Cables, and is in talks with another five companies interested in issuing primary shares.

"The [market] scenario will change following the listing of some good companies," said Mazeda Khatun, managing director of ICB Capital.

Asked about the trend, a senior official of the Dhaka Stock Exchange (DSE) said many companies had already visited the bourse to discuss listing.

Sources at the DSE said seven companies intend to float IPOs, while another eight have shown interest in raising funds through bonds.

"Some of them have also shared bitter experiences with the previous long-standing process of getting clearance from the regulator to float shares," said an official who preferred not to be named.

The Public Issue Rules 2025 reduced the period for approving or rejecting an IPO proposal to within 55 days.

The factors prompting issuer companies to go public include the pressure of bank loan repayment and the reduced scope of receiving fresh loans from banks. That is why highly leveraged companies are moving towards raising funds from the capital market.

Besides the shorter IPO approval period, the scope for fair valuation of shares and further amendments to the public issue rules under consideration have also encouraged many companies to raise capital from the market.

The securities regulator is working on further amendments to the public issue rules.

Asked about this, Iftekhar Alam, chief executive officer of LankaBangla Investments, said that apart from signing an agreement with Shoeniverse Footwear, the firm was in talks with five other companies interested in going public.

Confidence Infrastructure plans to raise Tk 3 billion through an IPO to finance electric vehicle (EV) battery production, business expansion, debt repayment and investments in new sectors, including food.

The company has appointed UCB Investment Limited as issue manager for the proposed IPO.

Factories producing garments, food, ceramics and pharmaceuticals are cutting production, changing work schedules and turning to alternative energy sources as the ongoing gas and power shortages make it harder and more expensive to keep plants running.

Manufacturers say switching to alternatives raises production costs, hurts margins and puts export deadlines at risk. In most cases, they also cannot pass the extra costs on to foreign buyers or local customers.Asif Ibrahim, vice chairman of Newage Group, which makes knitwear and woven garments for international brands, said the company has been changing its production schedule according to electricity availability.

“We adjust our production schedule according to the power situation. We also try to cut unnecessary use of electricity and get more out of the machines when they are running,” he said.

The crisis has been dragging on for around one and a half months since a floating LNG terminal went offline on July 21, leaving industrial areas with lower gas pressure. Reduced gas supplies to gas-fired power plants have also triggered widespread power outages.To offset the fallout, Newage says it has expanded its rooftop solar capacity, which now supplies about 25 percent of its electricity needs.

The company is also investing in energy-efficient machinery and power-management systems to reduce its dependence on the grid.But these measures cannot fully absorb the cost of an unreliable energy supply.

“When there is no grid power or gas, we have to run diesel generators. That adds a lot to our cost,” said Asif.

For exporters, recovering those extra costs from buyers is difficult because they generally do not agree to higher prices when production costs rise in sourcing destinations.

“So, we have to bear a large part of the extra cost ourselves,” said the Newage Group vice chairman.

Like the garment manufacturer, PRAN-RFL Group, which makes food, beverages, plastics, household goods, furniture, and electrical and electronic products for local and foreign buyers, is also adjusting its operations.

The food maker says some of its production lines are now running below capacity.

Kamruzzaman Kamal, director of marketing at PRAN-RFL Group, said its gas-dependent factories in Narsingdi, Habiganj, Gazipur and parts of Narayanganj have been hit particularly hard.

“We are using LPG where we can. And when the gas pressure is low, we cannot run all the lines at the same time. So, we run some and keep others closed,” said Kamruzzaman.

The group currently generates around 35-38 megawatts of renewable energy for its own use, against total electricity demand of more than 200MW.

“We are working to increase our renewable power capacity to around 100MW within this fiscal year,” said Kamruzzaman. He said PRAN-RFL plans to eventually meet all of its electricity needs from solar power.

The energy crunch is also hitting the cement market, where manufacturers are paying more for electricity and other inputs but have little room to raise prices.

Mohammad Iqbal Chowdhury, CEO of LafargeHolcim Bangladesh, said the 18 percent increase in electricity prices in June, along with higher raw material and freight costs, has pushed up their production costs.

“Costs have gone up, but we cannot pass all of it on to customers,” he said.
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Local cement markets already have far more production capacity than demand. The industry has an annual capacity of about 90 lakh tonnes against demand of around 35 lakh tonnes. Demand fell by 2-5 percent up to August, making it even harder for manufacturers to raise prices without losing sales.

Iqbal said several smaller producers have already shut down, while larger companies were relying on their stronger financial position to weather the downturn.

Meanwhile, ceramic manufacturers say they are struggling to keep their kilns running amid the gas crisis.

Moynul Islam, president of the Bangladesh Ceramic Manufacturers and Exporters Association, said manufacturers had initially passed some of the higher energy costs on to customers. But that was no longer possible.

“The problem is no longer just the higher cost. In some cases, we cannot produce at all,” he said.

Gas pressure in some industrial areas has fallen from around 15 PSI to simply 5 PSI, forcing some factories to shut down or sharply cut production. Manufacturers have tried adjusting machinery to operate at lower pressure, but there is a limit to how far they can go.

Ceramic kilns must maintain a specific temperature to produce goods of the required quality. When gas pressure falls too low, manufacturers often choose not to fire the kilns rather than risk damaging an entire batch.

Similar to PRAN, other food manufacturers and exporters are also taking a hit.

Khurshid Ahmad Farhad, general manager (export) of Bombay Sweets & Company Ltd, said the company could not execute 45.47 percent of its export orders in August because of the gas shortage. Around $113,000 worth of orders remained undelivered despite advance payments from importers.

Khurshid said freight costs for shipments to the Middle East have also risen to $8,500-$12,000 per container. “If a container of chips is worth around $6,000 but the freight is $12,000, how can we continue?” he said.

The company has used diesel to keep production going, but the additional fuel cost is causing losses. Raising prices is also difficult when demand is weak.

“If this continues much longer, we cannot continue like this,” said Khurshid.

Steel mills are meanwhile adjusting their production processes to use less gas.

Sumon Chowdhury, secretary general of the Bangladesh Steel Mill Association, said mills with facilities that can turn molten steel directly into billets and then hot-roll them can maintain around 50-60 percent of normal output during the crisis.

“If a factory can produce billets directly from molten steel and then hot-roll them, it can keep producing to some extent without running a reheating furnace,” he said.

Some mills are also changing when they run equipment, depending on gas and electricity availability.

Md Quamrul Hassan, executive director and COO of ACI Consumer Brands, which supplies a wide range of household, personal care, hygiene, and food products, said factories that need to operate round the clock face a bigger problem, as running on diesel generators raises production costs by at least 10 to 15 percent.

Overall production has risen, but higher energy costs have reduced profit margins, he said.

Abdul Muktadir, chairman and managing director of Incepta Pharmaceuticals, which produces life-saving medicines, said the company is accelerating its move towards renewable energy, particularly solar power, as gas and electricity shortages push up costs.

“We have to move to renewable energy, solar panels, and we have to move very quickly,” Muktadir said. “These are our only options.”

Muktadir said Incepta currently uses four energy sources to keep its factories running -- natural gas, LPG, diesel and grid electricity.

The company initially used gas-fired generators as a backup to grid power, but later installed dual-fuel generators that can switch to diesel when gas is unavailable. It also uses LPG to run its boilers.

“We cannot simply stop. There is no opportunity to stop,” Muktadir added.

Nearly half of the industrial plots planned for the Jashore Export Processing Zone (EPZ) have already been prepared for allocation to investors, as the development of the new industrial hub in the country’s southwestern region is progressing rapidly.

Of the 415 industrial plots planned under the project, 200 have already been made ready for allocation to investors, said Abu Syeed Md Anwar Parvez, executive director (public relations) of Bangladesh Export Processing Zones Authority (BEPZA).

“Jashore EPZ is not merely an initiative to establish an industrial zone; rather, it is opening a new window of opportunity to transform the overall economic scenario of the southwestern region of the country,” he told BSS.

He said the construction of the EPZ is progressing rapidly under BEPZA’s supervision while infrastructure development and the plot allocation process are being carried out simultaneously to enable investors to establish factories and start commercial operations at the earliest possible time.

“Several local and foreign investors have already visited the Jashore EPZ,” he said, adding that BEPZA is taking steps so that investors can move ahead with factory construction and other preparatory activities without waiting for the completion of all infrastructure works.

According to BEPZA, the Jashore EPZ is being established on 510 acres of land at Prembagh Union under Abhaynagar upazila of Jashore district with the objective of attracting investment, increasing export earnings and creating large-scale employment in the southwestern region.

The project was approved by the Executive Committee of the National Economic Council (ECNEC) on November 9, 2023, at a cost of Tk 1,678.29 crore.

The land was handed over to BEPZA by the Jashore district administration on March 23, 2024.

The project aims to attract around $2 billion in investment and generate annual exports worth $2.4 billion when fully operational.

It is expected to create direct employment for 1.5 lakh people and indirect employment for another three lakh Bangladeshis.

Anwar Parvez said the simultaneous progress of plot allocation and infrastructure development would allow investors to complete factory construction and other preparations while the EPZ’s internal facilities are being developed.

“By the time investors complete their preparations for setting up factories, the necessary infrastructure of the EPZ will also be completed,” he said.

According to the project update, around 70 percent of land development work has been completed while construction of RCC canals is about 95 percent complete. Roads, drains, culverts, boundary walls and footpaths are under construction.

Construction is also underway on an office building, four six-storey factory buildings, three 10-storey residential buildings, two six-storey dormitories and two six-storey Ansar and security barracks.

The tender process for establishing a gas network by Sundarban Gas Company Limited is underway.

An initiative has also been taken to construct a 33/11 kV GIS substation under the financing and management of Bangladesh Rural Electrification Board, while the 11 kV electrical line and substation have already been commissioned.

Tenders have been invited for solar street lights and a water distribution network. Designs and estimates for the Central Effluent Treatment Plant (CETP), Sewerage Treatment Plant (STP) network and internet network are also being prepared. Two deep tube wells have already been installed.

“We hope that once Jashore EPZ becomes fully operational, it will inject new life into the local economy, create huge employment opportunities and play an important role in transforming the overall economic landscape of the southwestern region,” Anwar Parvez said.

The Jashore EPZ project is scheduled to be completed by December 31, 2026, while a proposal to extend the project tenure by one year to December 31, 2027 is under consideration.

Bangladesh's push to mechanise agriculture is facing a financing bottleneck as importers of farm machinery struggle with the high dollar rate and increased upfront margins on letters of credit (LCs).

With more funds tied up in LCs, traders with limited capital say they can no longer import the volumes they need.

Bangladesh Bank data shows LC settlements for capital machinery falling from $3.48 billion in FY23 to $1.81 billion in FY26.

The impact of tighter financing is evident in the experience of Mohammad Zahir, owner of Zahir Enterprise, a mid-sized machinery trading firm.

Speaking to The Business Standard, Zahir said importers previously did not have to deposit the full value of goods against an LC, allowing them to import larger volumes with limited working capital.

"Earlier, if we imported goods worth Tk2 crore, we could do it by depositing just 30% or 40%. But now that facility is not available. Our margin requirement has gone up; in many cases we have to deposit the full amount," he said.

Zahir said the higher margins leave more working capital tied up, forcing businesses to scale down imports.

Md Nurul Islam, president of the Bangladesh Agricultural Machinery Merchants Association, said financing pressure has intensified with the appreciation of the dollar.

"On one hand, the dollar rate is high. On the other, new policies on LC margin requirements mean we are not getting adequate bank support, so we're having to import using our own funds," he said.

"I am not getting bank support, so I have to self-finance. Meanwhile, I have to sell my goods on credit," Nurul Islam said.

He said importers often manage several shipments simultaneously, making it difficult to maintain sufficient working capital when funds are tied up across consignments.

"Managing all this has become difficult. We are now having to cut back on our import volumes," he said.

However, Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan said a 100% margin requirement for capital machinery imports does not apply universally. Margin requirements are generally set on a bank and client-specific basis, he said.

LC settlements down 41.95%

Bangladesh Bank data shows LC settlements for capital machinery imports stood at $3.48 billion in FY23, before falling to $2.66 billion in FY24 and $2.02 billion in FY25, a 41.95% decline over two years.

Settlements in FY26 stood at $1.81 billion, down nearly 48% from FY23.

Arif Hossain Khan said import volumes fluctuate with changes in tariffs and demand, making ups and downs in LC openings and settlements natural.

Import crunch may delay modernisation

Expanding machinery use in farming for land preparation, sowing, harvesting and threshing is a key part of agricultural modernisation and can reduce reliance on manual labour.

Agricultural economist Dr Jahangir Alam Khan said if agri-machinery imports decline because of the high dollar rate and LC-related complications, supply-side problems could follow.

"The decline in import volumes because of the high dollar rate and LC complications will, in effect, delay agricultural development through supply shortages," he said.

He said financing for machinery imports needed for agricultural modernisation should be made easier.

"Alongside providing subsidies to farmers, the government needs to focus on ensuring importers can bring in necessary machinery without difficulty," he said.

Long-term focus on local production

Nurul Islam stressed the need to reduce reliance on imported machinery by boosting domestic production.

He said there is scope to manufacture agri-machinery and parts, including power tillers, diesel engines, tractors and equipment used for sowing and harvesting.

However, higher production costs mean local products need policy support to remain competitive.

"If we stop the flow of imports for the goods we can manufacture here, domestic production will grow, and the country's money will remain within the country," he said.

He called for long-term planning and policy coordination to boost domestic agri-machinery manufacturing.

If financing pressure persists, the expansion of machinery supply could slow, affecting the broader push to mechanise agriculture.

Stakeholders say banking and financing facilities for machinery imports need to be eased, while domestic manufacturing capacity should be strengthened over the longer term to reduce import dependence.

The country's premier bourse ended a volatile week with marginal gains as a mid-week surge in bargain hunting successfully offset heavy selling pressure seen in the early sessions.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) inched up by 6 points, or 0.11%, to settle the week at 5,662 points.

Despite the fragile recovery, the market witnessed a "tug-of-war" between opportunistic buyers and cautious sellers. The blue-chip DS30 index followed the broad index's lead, gaining 5 points to close at 2,140. However, the DSE SME Index faced a setback, dropping 26 points to settle at 1,046.

Market participation saw a slight improvement, with the daily average turnover rising by 6% to stand at Tk608 crore.

EBL Securities, in its weekly market review, said the market came under heavy selling pressure at the beginning of the week amid concerns that persistent domestic headwinds could hurt corporate earnings. The absence of fresh positive catalysts also pushed the DSEX below the 5,600 mark after around two months.

The market, however, received some respite in the middle of the week as bargain hunters accumulated beaten-down shares following favourable remarks from regulatory authorities regarding long-term structural reforms. The recovery attempt lost momentum in the final session as weak conviction over the market's direction triggered quick profit-taking.

Sheltech Brokerage Limited said market performance was largely shaped by the competing forces of buying interest and selling pressure. Optimism surrounding BSEC Chairman Masud Khan's recently proposed market-development initiatives supported buying, while concerns over the energy-supply crisis kept investors cautious.

The brokerage said renewed buying emerged after the BSEC chairman announced several market-development initiatives, but persistent selling pressure kept the market volatile. Going forward, progress on the proposed reforms, developments in the energy-supply situation, and upcoming earnings and dividend announcements from June-closing companies are likely to influence market direction.

Textile stocks dominated trading, accounting for 33.6% of total turnover, followed by general insurance at 12% and pharmaceuticals at 11.3%.

Sector performance was mixed. General insurance led the gainers with a 2.7% rise, followed by travel and jute, each gaining 1.4%. Services was the biggest loser, declining 2.1%.

Beximco Pharma, Malek Spinning, Paramount Textile, Beacon Pharma and Saiham Cotton were among the major stocks supporting the DSEX during the week.

Saiham Textile, Sharp Industries, Malek Spinning, Saiham Cotton and IPDC Finance recorded the highest average turnover.

Saiham Cotton led weekly gainers, rising 15.9%, followed by Nahee Aluminum at 11.1% and Bangladesh National Insurance at 10.5%. Safko Spinning gained 10.5%, while Nitol Insurance advanced 9.6%.

On the other hand, Sharp Industries suffered the steepest decline, falling 20.6%. Lovello Ice-cream dropped 15.7%, Apex Spinning declined 13.6%, Reliance Insurance Mutual Fund One fell 11.5%, and Tung Hai Knitting lost 10.6%.

The trustee board of Vanguard AML Rupali Bank Balanced Fund has approved a proposal to voluntarily convert the closed-end mutual fund into an open-end scheme, potentially improving liquidity and providing unitholders with a more flexible exit option.

According to an official disclosure issued by the Investment Corporation of Bangladesh (ICB), the fund's trustee approved the conversion proposal submitted by its asset manager, Vanguard Asset Management Ltd (VAML), in line with the Bangladesh Securities and Exchange Commission (Mutual Fund) Rules, 2025.

The fund will seek unitholders' approval for the proposed conversion at a Special General Meeting (SGM) scheduled for 26 October 2026 at 11:00am at RAOWA Convention Hall in Mohakhali, Dhaka.

Unitholders will vote at the meeting on whether to proceed with the conversion of the closed-end fund into an open-end scheme.

The trustee has set 4 October 2026 as the record date, on which trading of the fund's units on the stock exchanges will be suspended until further notice to determine the list of eligible voters.

The conversion initiative comes at a time when the fund has shown signs of a financial turnaround. After grappling with net losses since 2022, the fund reported a significant recovery in the first half of 2026.

For the January–June period, the earnings per unit (EPU) stood at Tk1.19, a sharp reversal from a loss of Tk0.57 in the same period last year. The recovery was particularly strong in the second quarter (April–June), which contributed Tk0.91 to the EPU.

Despite the earnings rebound, the fund's cash flow remains under pressure, with a negative net operating cash flow per unit of Tk0.68 for the first half of the year.

As of 30 June 2026, the Net Asset Value (NAV) per unit at market price was Tk9.57, while at cost price, it stood at Tk10.72. Listed on the Dhaka Stock Exchange in 2016, failing to declare any dividends since 2024.

Market observers believe the shift to an open-end structure will be a major relief for investors, as closed-end funds in Bangladesh have historically traded at steep discounts to their NAV. In the last trading session on 3 September, the fund's unit price closed 1.25% higher at Tk8.10 on the Dhaka bourse.

Fresh LP Gas, a subsidiary of Meghna Group of Industries (MGI), has expanded its liquefied petroleum gas (LPG) transportation capacity by adding a third carrier to its fleet.

The newly added MT Mercantile-65 can carry 2,000 tonnes, raising the company’s total in-house LPG carrier capacity to 6,000 tonnes, according to a press release.

Fresh LP Gas now operates three LPG carriers, each with a capacity of 2,000 tonnes.

The new vessel will mainly transport imported LPG from Kutubdia anchorage and Chattogram outer anchorage to the company’s plants in Meghnaghat and Mongla.

The expansion will strengthen the company’s logistics capacity, allowing it to transport more imported LPG and distribute it more efficiently across different regions. It is also expected to help ensure a more reliable LPG supply across the country.

“Meeting the country’s growing LPG demand requires a more reliable supply system,” said Tanvir Mostafa, director of MGI.

He said the company would continue investing in transportation and logistics capacity to support LPG supply and strengthen energy security.

Abu Sayed Raza, chief marketing officer of Fresh LP Gas, said the additional carrier would help the company maintain year-round supplies, meet rising demand and expand distribution to underserved areas.

Adani Power has reduced electricity dispatch from its 1,600MW Godda power plant to Bangladesh during off-peak daytime hours due to disruptions in coal transportation by rail, the company said today (2 September).

In a statement issued through 5W Communications, Adani Power's public relations firm in Bangladesh, the company said severe railway congestion and multiple loading restrictions across the transportation network had affected the movement of coal-carrying railway rakes to the Godda plant.

"As a result, the plant is receiving lower-than-normal coal supplies and is temporarily forced to optimise production," Adani Power said.

Power Grid Bangladesh data showed the impact of the reduced dispatch particularly during the daytime today.

Adani supplied 828MW at 8am against a forecast of 1,436MW. Supply remained around 920MW for much of the day before rising to 1,061MW at 5pm.

At 10am, the plant supplied 923MW, followed by 924MW at 11am, 913MW at noon, 921MW at 1pm, 920MW at 2pm and 943MW at 3pm. Supply stood at 924MW at 4pm, according to the latest available data.

The company said it had deliberately reduced daytime dispatch to preserve sufficient generation capacity for the evening peak.

"Consequently, the plant has moderated power dispatch during off-peak daytime hours to ensure adequate availability during the evening peak demand period," it said.

Yesterday (1 September),the company supplied 827MW at 5pm and 861MW at 6pm against a demand of 1,436MW. Supply rose to 1,314MW at 7pm, 1,315MW at 7:30pm and 1,312MW at 8pm.

Adani Power said it had kept the Bangladesh Power Development Board informed of the situation and was working with Indian Railways to restore normal availability of coal-carrying rakes as soon as possible.

"We expect the situation to normalise shortly," the company said, adding that it was taking all possible measures to maximise coal deliveries and minimise the impact on power supply.

The reduced dispatch comes as Bangladesh is already facing a significant electricity shortfall amid a gas supply crunch affecting power plants.

The lower output from the Adani plant is likely to add further pressure to the country's ongoing load-shedding situation.

The Bangladesh Submarine Cables PLC (BSCPLC) has ruled out any current or future shortage of international bandwidth, saying it is fully prepared to meet the country's growing demand.

In a press release issued by the Posts and Telecommunications Division on Wednesday (2 September), the state-owned company said recent reports warning of a possible bandwidth crisis and higher internet prices were misleading and did not reflect the actual situation.

The statement came in response to reports published under headlines including "Bangladesh on the brink of bandwidth crisis, major disruption feared in internet sector" and "Internet prices may rise, speed may fall amid bandwidth crisis".

"Currently there is no shortage of international bandwidth supply, nor is there any possibility of a shortage in the future," BSCPLC said.

The company said it is implementing a third trusted submarine cable system, SEA-ME-WE-6, alongside its existing SEA-ME-WE-4 and SEA-ME-WE-5 systems to meet future demand.

The two existing submarine cables have a combined capacity of around 7,200 Gbps. Of this, around 4,000 Gbps is currently being supplied to the country, while BSCPLC has the capacity to provide another 3,200 Gbps, according to the statement.

Once SEA-ME-WE-6 becomes operational in 2027, the state-owned submarine cable systems will have a combined bandwidth supply capacity of around 34,000 Gbps, the company said.

According to projections by the Bangladesh Telecommunication Regulatory Commission (BTRC), the country's total bandwidth demand is expected to reach 30,000 Gbps by 2030.

BSCPLC said the projected capacity would therefore be sufficient to meet the country's growing bandwidth demand.

Besides the submarine cable systems, bandwidth is also being imported according to demand through the country's six International Terrestrial Cable (ITC) operators.

The company also said it has already started the process of joining a fourth submarine cable system, further strengthening the country's international bandwidth capacity.

BSCPLC said it has been providing bandwidth to customers through attractive packages while continuously reducing prices, making international bandwidth more affordable.

It said bandwidth would be provided at more affordable prices as usage increases in the future.

Rejecting reports of an impending shortage or price hike, BSCPLC said such reports were "not correct" and had been disseminated deliberately.

The company urged the public and other stakeholders not to be alarmed by what it described as misleading reports.

BSCPLC also said it remained committed to protecting the country's digital sovereignty and ensuring the security of its national strategic information infrastructure.

Stocks slumped in Asian trading on Wednesday as a bond market-induced selloff on global markets spilled over into the region, after renewed attacks by the US on Iran pushed oil prices higher.

MSCI's broadest index of Asia-Pacific shares outside Japan tumbled 1.5 per cent as South Korea's KOSPI dropped more than 3 per cent, while the Nikkei 225 was down 2.6 per cent. S&P 500 e-mini futures EScv1 were down 0.1 per cent.

Brent crude futures extended gains into a second day as trading resumed in Asia, rising 1.3 per cent to $95.91 a barrel after the US launched a barrage of airstrikes on Iran on Tuesday, which earlier pushed oil prices to a five-week high.

"The threat of further disruptions to the Strait of Hormuz has brought about renewed anxiety over inflation, driving a selloff in stocks across most major markets and a rout in global bond markets," Westpac analysts wrote.

The yield on the US 10-year Treasury bond hit an intraday high of 4.8122 per cent, its highest level in almost three years, while the yield on the 5-year Japanese government bond rose to 2.295 per cent, its highest level on record.

"September kicked off on a shaky note as developed market government bonds continued to sell off," DBS analysts wrote.

"Brace for a volatile month ahead as high yields cause angst across the asset classes," they added. "If the bond rout does not get stemmed, policymakers would probably have to resort to more aggressive measures to cap yields."

The kiwi dollar was down 0.6 per cent at $0.5855 after the Reserve Bank of New Zealand hiked interest rates by 25 basis points to 2.75 per cent, as expected by markets, though dovish language in the central bank's statement weighed on the currency.

The US dollar index =USD, which measures the greenback's strength against a basket of six currencies, was up 0.1 per cent at 99.79, its highest since Aug 17.

Overnight on Wall Street, the S&P 500 slipped 0.7 per cent and the Nasdaq Composite fell 1 per cent as a surge in government bond yields weighed on equities.

The declines came as data from the Institute for Supply Management released on Tuesday showed US manufacturing activity moderated in August amid a slowdown in new orders, but remained in expansionary territory.

Traders believe that the Federal Reserve is likely to lift interest rates at its next meeting in two weeks, though a hike is not certain.

Fed funds futures are pricing an implied 67 per cent probability of a 25-basis-point increase to benchmark borrowing costs at the US central bank's two-day meeting ending on September 16, compared with a 39.6 per cent chance a week ago, according to the CME Group's FedWatch tool.

Gold was down 0.8 per cent at $4,295.70 an ounce, while bitcoin slipped 0.6 per cent to $76,979.55 and ether was 0.9 per cent lower at $2,397.78.

The government has increased the maximum retail price of bottled soybean oil by Tk 5 to Tk 204 a litre, citing higher international prices and import costs.

The new price will take effect tomorrow, following a decision taken at a meeting between the Ministry of Commerce and edible oil traders today.“Bottled soybean oil has been increased from Tk 199 to Tk 204 a litre,” Commerce Secretary Md Ataur Rahman Khan told reporters after the meeting.

However, the prices of loose soybean oil and palm oil have been kept unchanged, he said.

The decision came after edible oil refiners and importers sought a price adjustment.

The Bangladesh Vegetable Oil Refiners’ and Vanaspati Manufacturers’ Association had earlier said the cost of imported edible oil had risen substantially following an increase in international prices.

The association claimed that the cost of imported edible oil had reached Tk 217 a litre, while refiners had been selling bottled soybean oil at Tk 199, resulting in a loss of around Tk 18 per litre over the past three months.

The Bangladesh Trade and Tariff Commission had recommended a Tk 10-per-litre increase, while traders reportedly sought a higher increase at today’s meeting.

The government, however, opted for a smaller adjustment after considering consumer interests, according to the commerce secretary.

“The importers had applied for a price adjustment due to the rise in edible oil prices in the international market and higher transportation costs. After reviewing the market situation, the government decided to make a limited adjustment,” Ataur said.

He said there was currently an adequate supply of edible oil in the domestic market and no shortage.

“The government is regularly monitoring the situation to keep the market stable,” he added.

Asked whether edible oil prices would be raised again before Ramadan, the commerce secretary said it would depend on international prices, import costs and the overall supply situation at that time.

Meanwhile, in a press release, the refiners said they accepted the Tk 5 increase, as they had received assurances that the price would be raised further soon.

Amid the energy crisis that has been dragging on for more than a month, top business leaders have recommended bringing idle power plants run by coal, furnace oil and diesel back into operation as a short-term measure.

They say this would reduce some of the pressure on gas supplies used for electricity generation, allowing more gas to be diverted to manufacturing units.

The ownership of coal, furnace oil and diesel-fired power plants in Bangladesh is split between the government and private independent power producers. Private companies hold a large share of oil-based generation, while coal-fired capacity is driven by large public-private or state ventures.

The proposal by the business leaders is aimed at firefighting the immediate energy crisis triggered by the US-Israeli war on Iran, which has disrupted shipping through the Strait of Hormuz and severely affected liquefied natural gas (LNG) deliveries from the Middle East. Alternatively, refined heavy fuels and coal are available in regional markets, including Singapore, Malaysia and Indonesia.
Image

Businesses are going through a turbulent period as energy shortages, difficulties in accessing finance and growing uncertainty weigh on factory production and make firms cautious about new investment decisions.
Md Fazlul Hoque, Administrator to FBCCI

At a discussion at The Daily Star Centre in Dhaka yesterday, the business leaders also made recommendations for the medium and long-term energy plan.

“Many factories, especially apparel units, are now running at only 30 percent to 40 percent capacity because of frequent power outages,” Fazlee Shamim Ehsan, president of the Bangladesh Employers’ Federation, said at the discussion.

Frequent load-shedding is affecting the dyeing sections of garment factories, making it difficult for apparel manufacturers to achieve the exact colour of fabrics, as the dyeing process requires a continued flow of adequate gas pressure, he told the programme on current challenges facing the industrial sector and the way forward.

Shamim, who is also the executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the actual gas pressure was allocated at 15 PSI, but factories are currently getting as little as 1 PSI, which is inadequate to run the dyeing sections.

He said nearly 1,200 garment exporters in Fatullah area of Narayanganj industrial belt are facing the same problem.
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If I know I will miss a deadline by 20 days, I can plan for it. But I do not know how long an energy disruption will last, it is worse.
Fazlee Shamim Ehsan, President of Bangladesh Employers’ Federation

If the government can supply gas even at 7 to 8 PSI, it would be acceptable to businesses as they could run their factories and ship goods according to their commitments to international trading partners, he said.

For dyeing factories, the problem is particularly serious because the process depends on steady heat and steam. Frequent interruptions make it difficult to maintain production schedules and ensure the required colour and quality of fabrics, said the BKMEA executive president.

According to him, until now, factory owners have continued operating despite lower gas pressure and frequent load-shedding, hoping energy supplies will improve soon. However, it is becoming difficult for businesses to know how long they can continue operating under such conditions.

“If I know I will miss a deadline by 20 days, I can plan for it. But when I do not know how long the disruption will last, that is much worse,” Shamim said.

He believes the immediate response should focus on restoring energy supplies rather than waiting for a permanent solution. He also called for a clear short, medium and long-term energy plan so businesses know what to expect.

Fazlul Hoque, administrator of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said businesses are now going through a turbulent period as energy shortages, difficulties in accessing finance and growing uncertainty weigh on production and investment.

He said the current crisis is in some ways worse than the Covid-19 period because the pandemic affected countries at the same time, whereas the present situation is uneven, with some countries doing well while others are struggling.

During the pandemic, Bangladesh’s competitors were also facing widespread similar disruptions, meaning businesses in major competing countries were also dealing with similar difficulties, Fazlul said.

“But the current situation is different, with some countries operating normally or doing well while we are struggling with energy shortages, finance and other constraints.”

For businesses, he said, the problem is no longer confined to one sector. Gas and power shortages are disrupting factories, banks have become more cautious about lending and trade finance, while uncertainty is making entrepreneurs reluctant to commit fresh capital.

“The result is a slowdown in investment at a time when the economy needs new money and new activity,” said Fazlul.

The FBCCI administrator said the country needs to pay greater attention to investment in areas such as IT and AI-related sectors over the next two to three years and diversify where capital is being deployed.

Even if such investments do not immediately create large numbers of jobs, they would bring money and foreign currency into the country and help keep economic activity moving, he said.

Instead of waiting for large investments to return, Fazlul said Bangladesh should encourage a broader flow of capital, including foreign direct investment, so that money continues to circulate through the economy.

“But restoring production is an immediate concern.”

The immediate challenge, Fazlul said, is to take the initiative to operate furnace oil and coal-based power plants to mitigate the ongoing crisis. One option is to bring idle or underused power plants back into operation using alternative fuels such as furnace oil.

He said Bangladesh’s export economy has grown substantially over the years, creating jobs and building industrial capacity. But repeated shocks have also eaten into businesses’ reserves, leaving many companies with little room to absorb another prolonged disruption.

“The energy crisis has also exposed the limits of the banking sector’s ability to support struggling businesses.”

Fazlul said commercial banks have become overcautious and are demanding a lot of documents for loan approval. At the same time, some banks are not giving loans easily because of a trust deficit between bank management and exporters.

“Banks that once helped distressed factories recover are now dealing with problems of their own. As a result, businesses that need working capital or support to restart operations are finding it harder to get help.”

He argued that the biggest problem is no longer simply the high interest rates. For most businesses, the FBCCI administrator said, access to finance matters more than the rate itself.

“Banks have become more cautious and transactions that once took minutes can now take days as lenders scrutinise risks more closely.”

He said that caution is understandable given the condition of the banking sector, but prolonged delays can create another problem for businesses, particularly exporters who need timely trade finance.

For companies already facing production losses because of inadequate gas and electricity, delays in obtaining working capital can further restrict their ability to operate.

This combination of weak energy supplies, cautious banks and uncertainty is also making businesses more reluctant to invest, he added.

Bangladesh Bank (BB) on Wednesday issued a consolidated circular updating regulations governing foreign exchange transactions related to loans, overdrafts, guarantees and external borrowings.

The Foreign Exchange Policy Department-1 (FEPD-1) issued the circular, which consolidates the instructions contained in the previous FE Circular No. 34 issued on September 2, 2025, along with subsequent circulars issued thereafter.

With the issuance of the new circular, all previous instructions on the subject have been repealed, except for the reporting instructions contained in the Guidelines for Foreign Exchange Transactions (GFET), Volume-2. The new instructions will remain valid for one year from the date of issuance.

The circular covers lending activities, loans and overdrafts, trading and commercial loans, foreign-owned or controlled companies, guarantees, repayment guarantees, foreign borrowing and related foreign exchange transactions.

Under the updated rules, banks and finance companies may provide admissible Taka financing against overseas bank guarantees (BGs) or standby letters of credit (SBLCs) to resident companies, regardless of their ownership or controlling status, subject to applicable credit norms, prudential requirements and specified conditions.

Such overseas BGs or SBLCs must be unconditional, irrevocable and payable on first demand, and must be issued by a non-resident bank or institution having an acceptable international credit rating. Banks and finance companies must also ensure the legal enforceability of the guarantees and assess borrowers' financial soundness and repayment capacity.

The circular also provides general authorization for banks to extend Taka working capital loans to foreign-owned or foreign-controlled industrial and trading firms operating in Bangladesh, subject to prevailing credit norms and normal banker-customer relationships. Resident companies may also provide interest-free Taka working capital loans to such foreign-owned or controlled companies under the new consolidated framework.

Foreign-owned or controlled companies engaged in manufacturing or services for three years or longer may obtain Taka term loans from the domestic market for capacity expansion or balancing, modernisation, rehabilitation and expansion (BMRE), provided applicable credit norms and prudential parameters are followed. Their total debt, however, must not exceed a 60:40 debt-equity ratio.

The central bank has also retained provisions allowing authorized dealer (AD) banks to issue certain guarantees on behalf of Bangladeshi exporters in favour of overseas buyers without prior approval, subject to banking norms and conditions.

For foreign borrowing, proposals by private-sector industrial enterprises require prior authorization from the Invest Bangladesh Authority. Short-term credit facilities of up to one year from foreign suppliers or buyers remain subject to Bangladesh Bank's guidelines governing current commercial transactions.

The circular says repayment of approved foreign loans may be remitted by AD banks without prior reference to Bangladesh Bank, subject to specified conditions, including submission of relevant loan agreements, repayment schedules and, in the case of supplier's credit, bills of entry confirming the arrival of imported capital goods.

Borrowing abroad by public-sector entities will require government approval, while commercial or non-concessional borrowing will additionally require specific approval from the Standing Committee on Non-Concessional Loan (SCNCL).

The circular also requires AD banks to submit consolidated quarterly statements of foreign loans approved by the Invest Bangladesh Authority or Bangladesh Bank, including information on the utilization of each loan, within 15 days of the end of each quarter.

For enterprises operating in specialized zones, the circular categorizes them as Type A (100 percent foreign-owned), Type B (joint ventures between foreign investors and Bangladeshi entrepreneurs) and Type C (100 percent Bangladeshi-owned). It provides separate provisions for foreign currency and Taka financing for these enterprises.

The circular also allows Type A enterprises in specialized zones to obtain short-term foreign currency loans from overseas banks and financial institutions for specified purposes, including imports of capital machinery and raw materials, payment of interest and service charges, loan repayment and meeting local expenses.

The new consolidated circular was issued under the authority vested in Bangladesh Bank by Section 20(3) of the Foreign Exchange Regulation Act, 1947.

Bangladesh Bank (BB) has launched a Foreign Exchange Market (FXM) Module to automate foreign exchange intervention, interbank transactions and reporting-related activities, aiming to enhance efficiency, transparency and reliability in the country’s foreign exchange market.

BB Governor Md Mostaqur Rahman formally inaugurated the FXM system at the central bank’s Foreign Currency Management (FCM) department on Tuesday, said a press release.

Deputy Governor Dr Md Kabir Ahmed and Director of Foreign Reserve and Treasury Management Department-1 A.K.M. Ramizul Islam, among other officials concerned, attended the inaugural programme.

The FXM module has been developed by Bangladesh Bank’s own officials to automate activities that were previously carried out manually.

Bangladesh Bank periodically conducts foreign exchange interventions to maintain stability in the domestic foreign exchange market.

At the same time, banks undertake interbank foreign exchange transactions, including spot, forward and swap deals.

Banks also collect information on customer-level foreign exchange transactions, including imports, exports and remittances, which is used to prepare reference exchange rates published twice daily on Bangladesh Bank’s website.

According to the central bank, automation through the FXM module will enable foreign exchange transactions to be conducted on a real-time basis and facilitate the preparation of accurate reference rates.

It will also improve the accuracy, transparency and reliability of related information.

The system is expected to enhance commercial banks’ capacity to take timely decisions and improve the efficiency of their operations, thereby facilitating liquidity and risk management.

The real-time availability of information will also strengthen Bangladesh Bank’s market surveillance and help the central bank take timely and realistic decisions based on updated market data.

Bangladesh Bank has already issued a circular to the concerned banks along with Operational Guidelines detailing the use and procedures of the FXM system.

The central bank expects the automation to enhance efficiency, transparency and accountability in the country’s foreign exchange market operations while strengthening market management and supporting more effective policy decisions.

The Trump administration won backing from all G20 financial leaders except China's on Tuesday to act against "non-market" policies and distortions that cause over-reliance on exports and hinder growth elsewhere.The finance ministers' meeting clearly focused on China, while Washington used a parallel G20 gathering of industry titans and commerce ministers to make the case for a hands-off approach to AI regulation.
US Treasury Secretary Scott Bessent said he had been proven right when he warned other trading partners last year that tougher US tariffs would lead to an influx of Chinese goods diverted to their markets."We believe that non-market-based economies pushing out a never-ending stream of cheap exports is not sustainable," he told a news conference."I think that the fact that 19 countries did want to address this shows the sheer the enormity of the problem."A G20 chair's statement to conclude the meeting said the participants, except China's, agreed that countries should eliminate "non-market policies" that exacerbate imbalances.

"In particular, countries with excessive and persistent external surpluses should remove distortions that constrain domestic consumption and that result in an over-reliance on exports for growth," the statement said.

The two-day meeting of finance chiefs - which saw differences in tone between the US hosts and some European participants - came amid a global bond market selloff on worries over growing debt levels and inflation pressures.

European countries and Canada expressed dismay that Russia, invited by the forum's US hosts, attended for the first time since it invaded Ukraine in 2022.

CHINA'S MASSIVE EXPORT PUSH

China's massive export push has pressured economies across the globe, especially as the United States has imposed high tariffs on Chinese goods and outright bans on some products, such as Chinese vehicles.

With chronically weak demand, China has doubled down on exports of electric vehicles, semiconductors and other goods, and its total exports rose 23.9 percent in July year-on-year, prompting growing calls in Europe for tougher curbs on Chinese imports.

G20 member China has shown little interest in longstanding calls for it to reduce industrial subsidies and rebalance its economy, while its yuan currency remains significantly undervalued by most measures.

China's goods trade surplus with the European Union hit €360.6 billion last year, a 15 percent increase on 2024, and has expanded further this year.

European Economy Commissioner Valdis Dombrovskis said in a briefing that China is a major source of economic imbalances, but said the US and Europe both also had roles to play in evening things out.

In more direct comments, German Finance Minister Lars Klingbeil said the US- and Israeli-led Iran war, together with ongoing US tariff disputes, were also major causes of uncertainty holding back the global economy.

"Uncertainty is poison for economic growth," he said. "The tariff conflicts being pursued by the US, such as the current dispute with Canada, destroy trust."

Britain said it would maintain a pragmatic trade relationship with China, while navigating what it said was the sensitive issue of trying to reduce imbalances.

Canada, which has forged closer economic ties to China since the start of the year, was engaging with China no differently than other G7 countries and with "clear guardrails," its finance minister Francois-Philippe Champagne said.

International Monetary Fund Managing Director Kristalina Georgieva told Reuters she believed China recognized it needed to take action, but they were calling more for coordinated action with others, such as the United States reducing its growing fiscal deficits, which contribute to excessive import demand.
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Beijing has also leveraged its dominance in processing of critical minerals by placing export restrictions on rare earths in April 2025, a response to US President Donald Trump's tariffs that has also affected non-US companies.

Japanese Finance Minister Satsuki Katayama, speaking late on Monday, said she had told her G20 counterparts that arbitrary export restrictions on critical minerals were harming the global economy. The issue was included in the G20 chair's statement.

"We urge countries to avoid unnecessary export restrictions to ensure global supply chains continue to function normally," it said.

A selloff in global bond markets deepened on Tuesday, with Japan's 10-year bond yield hitting 3 percent for the first time since 1996 - the latest manifestation of investor concern about energy-driven inflation, potential monetary tightening and worsening fiscal conditions.

Treasury officials said Bessent had called for sound monetary policy to anchor inflation expectations and avoid excessive currency volatility during his meeting on Sunday with Bank of Japan Governor Kazuo Ueda.

"I have information that the market doesn't have, and it's my belief that the Japanese government and the BOJ will do the things that will lead to a stronger yen," Bessent told CNBC in an interview.

The remarks, which underline Bessent's recent calls for the BOJ to raise interest rates, were seen by the markets as aimed at bolstering the case for a rate hike at the BOJ's policy meeting on September 17-18.

Despite various facilities extended to borrowers, default loans in the banking sector continue to rise at an alarming rate.The amount of default loans in the country’s banking sector again crossed Tk 6.0 trillion at the end of June.Earlier, default loans had crossed the Tk 6.0 trillion mark for the first time in September last year.According to Bangladesh Bank data, the amount of classified or default loans in the banking sector stood at Tk 6.07 trillion at the end of June 2026.This accounted for 32.78 per cent of the banks’ total outstanding loans.

At the end of March 2026, default loans stood at Tk 5.89 trillion, accounting for 32.26 per cent of total outstanding loans.

This means default loans increased by Tk 178.51 billion in the three months from March to June.

Meanwhile, default loans in the banking sector increased by Tk 493.38 billion during the first six months of the current year.

At the beginning of the year, default loans stood at Tk 5.57 trillion.

Over the six-month period, the amount rose to Tk 6.07 trillion.

Although various facilities, including loan rescheduling and restructuring, have been provided to reduce default loans in the banking sector, they have failed to produce the desired impact.

Instead, weaknesses in loan recovery and fresh loan defaults have pushed up the overall volume of classified loans.

With nearly one-third of total outstanding loans turning bad by the end of June, fresh concerns have emerged over the quality of bank assets.

Continued growth in default loans could put further pressure on banks’ earnings, capital and overall financial stability.

As I walked through the streets of Ho Chi Minh City last week, my second trip there within a month, I couldn’t help but wish Dhaka could resemble it. It was a delightful experience to walk on cleaner pavements without constant uneven impediments and hawkers. I neither had to encounter reckless battery-run rickshaws nor put up with beggars nudging at my car windows. I never had to worry about security while taking a stroll on the streets of Ho Chi Minh City late at night. I could smell the aroma of world-famous Vietnamese coffee as I passed cafes that are almost omnipresent. I took “Grab” cars for rides, with comfortable, spacious and clean vehicles that reminded me of the run-down Uber cars in Dhaka. Both are old cities, yet Ho Chi Minh City is so much more liveable because of these small things.

Vietnam is rapidly progressing to a developed economy. Singapore did this decades ago. Vietnam is on the same path, with much bigger geographical and demographic advantages.

Vietnam is having a spectacular growth phase. In its latest assessment report, Standard Chartered has raised its forecast for Vietnam’s GDP growth in 2026 to 9.5 percent and 11 percent for 2027. It has also lowered its inflation forecasts to 4.4 percent for 2026 and 3.3 percent for 2027. Vietnam’s foreign direct investment was a staggering $38 billion during the first seven months of 2026. These are enviable economic indicators for any country. The government is encouraging banks to support its target of achieving double-digit GDP growth. The State Bank of Vietnam (SBV) has recently allowed banks to exclude public sector project loans from their overall credit limits and single borrower limits.

Yet economic indicators alone do not tell the full story until one experiences Vietnam first-hand. I could feel the vibe of a country collectively focused on its growth journey. I could see large infrastructure projects everywhere, even when I travelled outside Ho Chi Minh City. I saw people rushing to their destinations in cars and motorbikes. I found shopping malls with world-class brands full of visitors, locals and tourists. I visited grocery stores as locals stocked up their shopping carts with wholesome food and vegetables.

Vietnam has also become an attractive tourist destination. Some places reminded me of Kolkata, with colonial-era buildings and museums full of rich history. The food is served artistically in Michelin-starred restaurants, though my strict “halal only” cuisine policy left me with limited choices of vegetarian dishes, full of local herbs enriched with heavenly aroma. Most people in Vietnam, even at professional levels, do not speak or understand English. That is not an impediment to its growth journey, as it did not stop China or Korea. Vietnamese professionals have an insatiable hunger to learn best practices from global experts and implement them, especially in banking. Many expatriates are now working in Vietnamese banks and companies, sharing their experience and training local talent, who are very hard-working, bright and promising.

Vietnam is rapidly progressing from a developing to a developed economy. Singapore did this decades ago, and now Vietnam is on the same path, with much bigger geographical and demographic advantages. With a deep-rooted supply chain powered by SMEs and households, global tech giants such as Samsung, LG and Foxconn have chosen Vietnam as major manufacturing bases. As companies continue to hedge their China dependence and leverage their connectivity with other markets, Vietnam is leaping forward by building top-class infrastructure, delivering good governance and achieving world-class productivity in manufacturing and electronics.

There is a lot to learn from the Vietnam story as it unfolds rapidly in front of our eyes, and not too far from us.

The Bangladesh Bank is set to introduce a Tk500 crore financing programme, named UDYOG, for young entrepreneurs at the upazila level across the country.

The central bank's board recently approved the programme, which is likely to be announced today.

Under the proposed structure, funds may be collected from the corporate social responsibility (CSR) funds of scheduled banks to establish a separate, regulated grant account or special fund. The funds in this account will be used as performance-linked conditional grants for selected entrepreneurs.

Earlier, on 11 August, Bangladesh Bank Governor Md Mostaqur Rahman held a meeting with the chairman of the Association of Bankers, Bangladesh (ABB), managing directors and chief executive officers of 12 scheduled banks, and relevant officials of the central bank.

The meeting discussed in detail the selection of entrepreneurs under the programme and the establishment of an integrated financing mechanism combining bank loans with grants from the CSR funds of scheduled banks.

Particular importance was given to using unutilised institutional CSR funds of scheduled banks to finance the grant component of the programme.

As the programme is directly aligned with the objectives of entrepreneurship development, employment generation, and financial inclusion, using a portion of the unutilised CSR funds for the initiative would ensure more effective, targeted and outcome-oriented use of CSR resources, according to the proposed plan.

Under the programme, applications will be invited from young entrepreneurs across different upazilas, followed by screening, shortlisting, assessment of business potential and selection through credit appraisal.

A lead bank in each upazila will coordinate the programme. Selected entrepreneurs will be provided with bank loans based on their actual business needs and credit appraisal, under the applicable sectors of existing refinancing facilities available through Bangladesh Bank's SME and Special Programmes Department, according to Bangladesh Bank sources.

An important feature of the programme is an integrated financing mechanism combining loans and conditional grants.

A portion of the grant will be provided conditionally at the initial stage to meet entrepreneurs' immediate business needs, while the remaining portion will be kept in a separate grant account.

The remaining grant will be activated at a later stage based on the entrepreneur's loan repayment performance and fulfilment of predetermined assessment criteria.

According to the proposed plan, this mechanism will not only provide initial support to entrepreneurs but also encourage them to build sustainable businesses and improve their loan repayment capacity.

How the programme will be implemented

For effective implementation of the programme at remote and upazila levels, money will be spent for identifying and selecting promising young entrepreneurs, publicity and promotional activities, receiving and screening applications, organising meetings, workshops and entrepreneur gatherings at upazila and regional levels, evaluating business ideas, capacity building, meetings with relevant stakeholders and other necessary activities.

For the smooth and effective implementation of the programme, it has been decided that expenses related to entrepreneur searches and identification, meetings, programmes, publicity and promotional activities, and other approved implementation costs will be met from Bangladesh Bank's CSR Fund, according to the proposed plan.

The nature and limits of expenditure, approval procedures, accounting and audit-related matters will be determined in accordance with Bangladesh Bank's existing financial rules and applicable guidelines.

The proposed plan document further noted that the role of young people was extremely important in Bangladesh's economic development, employment generation and promotion of innovative initiatives.

Many promising young men and women in remote areas and at the upazila level have viable business ideas but, due to a lack of initial capital, business advisory support, institutional networks and financing, are unable to turn those ideas into sustainable enterprises.

Against this backdrop, the Bangladesh Bank has taken the initiative to implement an upazila-based young entrepreneur identification and financing programme under its supervision, the document said.

Nearly 18,000 customers of Sammilito Islami Bank have applied to withdraw Tk1,300 crore from their deposits on the first day of accepting withdrawal applications yesterday (1 September), the bank's managing director (MD) said today (2 September).

The bank began accepting applications from depositors at its branches and sub-branches on 1 September, with payments scheduled to begin on 7 September after verification.

The bank has nearly 84 lakh customers, meaning only 0.21% have so far applied to withdraw their deposits, said MD Md Abedur Rahman Sikder.

"The amount sought by 18,000 customers is very small compared with our capital. This indicates that people still have confidence in the bank," he said.

Of the applicants, customers seeking to close their accounts want to withdraw Tk254 crore, an amount the MD said was lower than the bank's normal daily transactions.

How many customers applied yesterday to withdraw their deposits will be known tomorrow.

The Sammilito Bank was formed by merging five troubled Islamic banks: EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank.

Under Bangladesh Bank's instructions, individual depositors will be allowed to withdraw the principal amount from current and savings accounts as well as the principal of term deposits. However, accrued or payable profit on the deposits will not be available under the facility.

Customers withdrawing their principal in full will be considered to have made a final settlement for the respective deposit. Any outstanding loan or liability with the predecessor bank will be adjusted against the deposit before payment.

Customers who keep their deposits with the bank can continue their accounts and earn profit at the applicable contractual rates.

However, if a term deposit is encashed before maturity, the customer will receive the principal but will not receive profit on the amount. In case of partial withdrawal, profit will remain payable on the balance according to applicable rules.

Dhaka Electric Supply Company Limited (Desco) has received formal consent from the Bangladesh Securities and Exchange Commission (BSEC) to issue 4.59 crore irredeemable non-cumulative preference shares to the government.

According to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (2 September), the shares carry a face value of Tk10 each, amounting to a total of Tk45.90 crore.

These shares are being issued in favour of the Government of Bangladesh, represented by the Secretary of the Power Division under the Ministry of Power, Energy, and Mineral Resources, against equity already provided by the state.

This marks the third such instance in recent years where the state-owned power distributor has regularised government capital injections through the issuance of preference shares.

Previously, in July 2024, the regulator approved a substantial Tk607 crore issuance, followed by a smaller Tk2.38 crore issuance in May 2025.

Following the announcement, Desco's share price experienced a marginal correction, edging down by 0.43% to settle at Tk23 on the premier bourse.

The company's standing in the capital market remains under scrutiny, as it was downgraded to the 'Z' or junk category in October 2025 for failing to reward shareholders with dividends for two consecutive financial years.

In terms of financial performance, Desco's latest unaudited reports indicate a volatile but recovering bottom line. For the first nine months of the 2025-26 fiscal year (July-March), the company reported an earnings per share (EPS) of Tk1.46, marking a significant turnaround from a loss of Tk1.98 per share in the corresponding period of the previous year. However, the third quarter alone (January-March 2026) saw a net loss of Tk0.81 per share, although this was a notable improvement from the Tk1.83 loss recorded a year earlier.

As of 31 March 2026, the company's net asset value (NAV) per share stood at Tk39.05, while its net operating cash flow per share rose to Tk13.85 from Tk8.98 in the prior year.