IT Consultants PLC, operator of the Q-Cash electronic payment network, reported a 14.09% year-on-year decline in profit in FY26 as financial constraints at member banks reduced transaction processing volumes.

The company's earnings per share (EPS) fell to Tk3.11 in the fiscal year ended 30 June 2026, from Tk3.62 a year earlier, according to price-sensitive information approved by its board on Sunday.

The board recommended a 10% cash dividend, or Tk1 per ordinary share of Tk10 each, for FY26, down from 12% for FY25. The record date for determining dividend eligibility is 4 November.

In its disclosure, the company said revenue from service and maintenance charges and transaction sales came under pressure during the year as financial constraints at several member commercial banks affected their operations and reduced transaction volumes.

IT Consultants operates the Q-Cash electronic transaction processing network, which connects 37 banks and more than 6,000 branches nationwide. Its performance therefore depends partly on transaction activity across member banks.

The company's net operating cash flow per share (NOCFPS) fell 18.88% to Tk3.61 in FY26, from Tk4.45 a year earlier.

Meanwhile, net asset value (NAV) per share rose to Tk25.16 as of 30 June 2026, from Tk23.25 a year earlier.

Shareholders will consider the financial statements and proposed dividend at the company's annual general meeting, scheduled for 13 December. The dividend recommendation is subject to their approval.

Non-operational companies listed on the Dhaka Stock Exchange (DSE) number as many as 37, with five joining the group this year, heightening concerns about regulatory oversight and investor protection.

C&A Textiles is the latest addition after a DSE inspection team found its factory closed last week, according to a disclosure by the stock exchange.

DSE data show that 36 listed companies went out of operation between 2016 and Sunday, while Meghna Pet Industries has remained shut since 2002, making it the longest-closed company among listed firms.

The list of non-functional companies becomes even longer when troubled financial institutions are taken into account. Five listed Islamic banks have already merged, while three listed non-bank financial institutions (NBFIs) have been selected for liquidation.

Market analysts say the growing number of inactive companies exposes deep-rooted structural weaknesses in the country's capital market and highlights long-standing failures in regulatory oversight.

Many of these companies raised funds from the public through the stock market years ago, but later saw their financial strength wither due to sponsor disputes, financial irregularities, loan defaults or legal battles. Some organisations failed to modernise operations or lost competitiveness amid changing market conditions.

For some manufacturers, rising energy costs and persistent gas shortages have made production financially unviable. In other cases, banking restrictions, shortages of working capital and raw materials, and disputes involving sponsors have disrupted business operations.

S Alam Cold Rolled Steels, for example, suspended production in August this year, citing banking restrictions and shortages of raw materials and skilled workers. The company fell into trouble following the political changeover in August 2024, when its owner left the country, and its bank accounts were subsequently frozen, disrupting its access to raw materials and production inputs.

Hamid Fabrics suspended factory operations in June last year, citing inadequate gas pressure. The company informed investors that production had already been disrupted for nearly two years before the worsening gas crisis forced a complete shutdown.

Appollo Ispat Complex, which was listed in 2013 with its IPO raising Tk 2.20 billion from the primary market, has remained shut since October 2020. The manufacturer of Rani Marka Dheutin, which went public despite strong objections from market stakeholders, began to show financial deterioration within four years of listing following allegations of embezzlement against its former directors.

Company officials of Meghna Pet Industries could not be reached for comment, as the DSE website provides neither a contact number nor the name of the company secretary.

In some cases, companies appear to exist only on paper. Familytex (BD), for instance, no longer has any physical manufacturing assets. A recent investigation by the Chittagong Stock Exchange (CSE) found that the company's factory and other assets had already been sold to a private entity.

C&A Textiles' prolonged troubles

C&A Textiles' latest operational setback has raised questions about the effectiveness of the company's earlier revival efforts and its prospects of returning to sustainable production.

The company entered the capital market in 2015, raising Tk 450 million through an IPO. Its production was suspended in June 2017, followed by prolonged operational and financial difficulties.

Alif Group took over the troubled company in 2021 and subsequently attempted to revive its business. Production resumed on a trial basis in 2022, but the latest DSE inspection found that the factory was non-operational.

The DSE downgraded the company to the 'Z' category in January 2025 for failing to hold its annual general meeting within the stipulated time frame.

The company has also failed to publish quarterly financial statements since the quarter ended in March 2024, according to DSE information, further limiting shareholders' ability to assess its financial health.

C&A Textiles had previously announced a proposed merger with Alif Industries, subject to the necessary approvals from banks, creditors, shareholders, the High Court and the securities regulator. However, the merger process has yet to be completed.

The development has raised fresh questions about regulatory oversight, as the company has failed to publish financial statements for an extended period, leaving investors without up-to-date information on its financial health and business prospects.

Market participants say the absence of timely and effective intervention has allowed troubled companies to remain listed long after their production activities ceased, leaving investors exposed to uncertainty.

Md Sajedul Islam, shareholder director of the DSE, said the exchange had intensified inspections as many companies had failed to disclose their operational status to investors in a timely manner.

He said the physical inspections were part of the exchange's broader initiative to verify the operational status of listed firms and take appropriate action accordingly.

Prof Abu Ahmed, chairman of Investment Corporation of Bangladesh, however, said inspections alone could not resolve the underlying problems. The securities regulator and the stock exchanges should draw up effective action plans.

He noted that companies with viable business prospects should be required to submit time-bound revival plans and disclose regular progress, while prolonged defunct firms need separate resolution measures based on their financial and legal status.

Bangladesh Securities and Exchange Commission Chairman Masud Khan recently said the regulator planned to suspend trading in shares of companies that had remained non-operational for an extended period. However, no specific implementation timeline has been announced.

Stock prices surge while factories remain shut

Despite prolonged shutdowns, machinery lying idle and workers gone for long, several non-operational companies have posted sharp price increases on the bourses. Analysts suspect speculative trading and price manipulation behind the rallies.

Aziz Pipes, which has remained closed since May 2025, saw its share price rise about 31 per cent over the past month. The stock gained another 9.97 per cent on Sunday to close at Tk 72.70.

Meghna Pet Industries, whose factory has been shut for more than two decades, climbed 25 per cent over the past month to Tk 73.60 on Sunday.

Tung Hai Knitting & Dyeing, which has not been producing anything for more than six years, also gained 22 per cent over the past month.

Shyampur Sugar Mills, with its production suspended since December 2020, saw its share price rise 9 per cent over the past month.

Responding to concerns over the growing number of non-operational firms, a BSEC executive director, who asked not to be named, said the stock exchanges are the frontline regulators and have the authority to take action against such companies.

"The stock exchanges can suspend trading or delist companies in accordance with the listing regulations," he added.

The Bangladesh Securities and Exchange Commission (BSEC) has formally urged Bangladesh Bank to extend the duration and expand the size of the special capital market investment fund scheme for commercial banks, proposing to elevate the individual allocation ceiling from Tk200 crore to Tk300 crore per bank to inject sustained liquidity and stabilise market volatility.

Speaking as the chief guest at a seminar, "Digital Deception and Scam Alert" at the Dhaka Stock Exchange (DSE) auditorium, BSEC Chairman Masud Khan emphasised that navigating economic challenges requires comprehensive structural reforms rather than short-term fixes.

Masud Khan said the scheme is set to end on 30 November, and it is a serious issue for the capital market, as we heard that some banks are feeling concerned about the extension. If the scheme tenure is not extended, then the market will suffer.

Detailing the commission's sweeping reform agenda, he announced that the BSEC is finalising comprehensive amendments to Initial Public Offering (IPO) rules to ensure absolute transparency.

The revised framework introduces stringent audit verification mandates, requiring independent external auditors to verify financial statements rigorously to eliminate false reporting, he said.

Acknowledging the extended gestation periods inherent to heavy capital-intensive sectors, the BSEC chairman said the amended rules will accommodate large-scale infrastructure projects, power plants, and mega industrial units by allowing them to apply for IPOs despite accumulated initial losses.

Besides, the commission is raising the loan repayment ceiling for IPO proceeds, enabling fundamentally sound, over-leveraged enterprises to restructure their balance sheets effectively, Masud said.

The BSEC chairman further said the regulatory overhaul extends deeply into the mutual fund sector, shifting away from rigid closed-end structures to champion open-ended funds in line with global standards.

To broaden retail market penetration, the commission is introducing certified mutual fund agents modelled on international insurance broker frameworks, he said.

The discussions also confronted the rising menace of cyber deception and digital scams. DSE Chairman Mominul Islam warned that although seamless information flow drives capitalist markets, social media exploitation and Ponzi-style double-money traps severely undermine public trust and exploit investor vulnerabilities.

Echoing these concerns, DSE IT General Manager Abu Nur Mohammad Hasanul Karim detailed how scammers leverage artificial intelligence, deepfakes, and cloned brokerage platforms to execute cyber fraud, urging market participants to practice rigorous verification, multi-factor authentication, and institutional reporting.

BSEC Commissioners Nafeez Al Tarik and Nahid Mahtab further cautioned investors against unrealistic high-return schemes.

Mahtab noted that cyber fraudsters routinely impersonate regulatory bodies and licensed brokerages using AI-generated media across social networks, necessitating advanced market surveillance that looks beyond isolated transactions to detect coordinated manipulative intent.

Concluding the seminar, market leaders stressed that combining progressive regulatory measures, enhanced digital vigilance, and extended banking liquidity support will successfully fortify investor confidence and cultivate a resilient, transparent capital market in Bangladesh.

The latest Bangladesh Bank data shows net FDI inflow came down to $1.47 billion in FY26 from $1.69 billion in the previous fiscal year.

The inflow declined again after a surge of 20 per cent in FY25.

In addition, FDI lost momentum in the April-June quarter of FY26 as rising investment outflows and weakening intra-company financial flows eroded net inflows, exposing the fragility of foreign investment performance.

The decline in net FDI is raising concerns about the sustainability of foreign investment amid growing economic headwinds and policy uncertainties.

People familiar with the development warn that deeper structural challenges, including regulatory delays, rising operational costs, energy shortages, and currency volatility, could discourage both new and existing foreign investors, although the latest quarterly decline alone does not establish a loss of investor confidence.

Talking to The Financial Express, Arief Hossain Khan, executive director and spokesperson at the Bangladesh Bank, attributed the subdued investment trend partly to foreign investors' wait-and-see approach as the government undertook reforms in the banking sector, fiscal policy, and other relevant areas, while the ongoing energy crisis and broader economic uncertainties continued to weigh on investment decisions.

Net FDI inflows into the country fell 22.44 per cent quarter-on-quarter to $346.94 million in the April-June period of 2026 from $447.31 million in the January-March quarter.

A component-wise analysis shows the quarterly decline was driven mainly by lower reinvested earnings and a sharp contraction in net intra-company loans, while equity capital inflows remained relatively stable.

Reinvested earnings, the largest component of net FDI, dropped 23.92 per cent quarter-on-quarter to $260.91 million in April-June 2026 from $342.92 million in the previous quarter.

During the quarter, gross reinvested earnings inflows amounted to $664.35 million, while outflows stood at $403.45 million, leaving a net inflow of $260.91 million.

Net intra-company loans recorded the steepest contraction, plunging 67.04 per cent quarter-on-quarter to $8.61 million from $26.13 million in January-March 2026.

Gross intra-company loan inflows totalled $333.80 million during the April-June quarter, but outflows reached $325.19 million, substantially limiting net contribution from this component.

Net equity capital inflows, meanwhile, declined marginally by 1.07 per cent quarter-on-quarter to $77.42 million from $78.26 million in the preceding quarter.

Gross equity inflows amounted to $115.06 million against outflows of $37.64 million.

Securing new equity funding continues to be difficult due to the ongoing caution among global investors, according to a top official of Invest Bangladesh, the country's apex investment promotion agency.

Commenting on the quarterly FDI data, Nahian Rahman Rochi, a member of Invest Bangladesh, said their focus remained on improving the fundamentals of the investment climate to attract stronger and more sustainable FDI over time.

In a statement issued on Monday, Invest Bangladesh said net FDI rose 12.78 per cent year-on-year to $346.94 million in April-June 2026, driven largely by reinvested earnings.

"The year-on-year growth in overall FDI was encouraging, particularly against a backdrop of continued global economic uncertainty, geopolitical tensions, and higher energy costs," Nahian said in the statement.

Referring to the latest Bangladesh Bank data, the statement said net reinvested earnings increased 55.08 per cent year-on-year to $260.91 million.

This indicated that foreign investors operating in Bangladesh were making profits and reinvesting those profits in the country, it said.

It also said net equity capital stood at $77.42 million, down 4.77 per cent from the same period of the previous year.

Global geopolitical uncertainty, conflicts in the Middle East, and rising energy prices had put pressure on new investments worldwide, it added.

"Fresh equity investment remains challenging as investors continue to take a cautious approach globally. At the same time, the strong growth in reinvested earnings is an important positive signal as it demonstrates confidence among existing investors in the long-term prospects of their operations and can support further expansion, employment, and productive capacity," Nahian said.

He also highlighted the government agency's role in attracting more investment, especially in economic zones.

"We are also working to improve investment readiness across our economic zones. The Chinese Economic and Industrial Zone, which has been delayed for more than a decade, is now under development, with a 2028 target and approximately $500 million in prospective investment."

The 180-day progress report published recently by Invest Bangladesh outlined the milestones that had been reached thus far, he said.

"We will continue to report on progress as we work to turn investment interest into operating businesses and jobs," he added.

Despite the decline in net inflows, overall gross FDI inflows remained broadly stable, edging up to $1.11 billion in April-June 2026 from $1.10 billion in the previous quarter and $1.09 billion in the corresponding period of 2025.

Total FDI outflows, however, rose to $766.27 million from $656.99 million in January-March 2026, reducing the amount retained as net investment during the quarter.

The outflow was lower than the $787.12 million recorded in April-June 2025.

The data highlight a gap between gross investment inflows and the net amount retained in the economy, with substantial outflows offsetting much of the money entering the country.

While gross inflows remained broadly stable, the fall in net FDI indicates that headline inflow figures alone may not fully capture the strength of foreign investment.

Reinvested earnings reflect profits that foreign-invested companies retain and reinvest in their businesses rather than remit abroad.

Intra-company loans represent lending between foreign parent companies and their affiliates in Bangladesh.

Bangladesh will urge the World Bank and the IMF to link development financing more closely to measurable outcomes, arguing that the key challenge is not a shortage of money but the failure to translate funding commitments into jobs and investment.

The position is outlined in talking points prepared for a closed-door ministerial roundtable titled "Transforming Demographic Transition into Human Capital Gains and Job Creation", to be held on the sidelines of the World Bank Group Annual Meetings in Bangkok tomorrow.

The Bangladesh delegation, led by the finance minister, will call for faster project implementation support, greater mobilisation of private capital through guarantees and risk-sharing mechanisms, closer alignment of skills training with employers' needs, and financing linked to measurable results, including investment mobilised, and jobs created.

"Financing commitments don't automatically become outcomes," the document, seen by The Business Standard, says, highlighting delays in project preparation, procurement and approvals that erode the development impact of funding.

Dhaka frames the stakes in global numbers: 120 crore young people in developing economies will reach working age in the next 10-15 years, against a forecast 40 crore jobs. About 28% of Bangladesh's population is young and of working age.

The paper says jobs must come primarily from the private sector, and cites deregulation, digital investment services through One-Stop Service and BanglaBiz, and priority sectors including high-value manufacturing, export services, SMEs, ICT and modern agriculture.

The government is also pursuing a strategy focused on technology, entrepreneurship and workplace reforms, with an annual target of creating 200,000 technology-sector jobs and a Tk500 crore startup fund to support young and women entrepreneurs.

Turning demographic change into economic gains

The 90-minute ministerial roundtable will bring together finance ministers and global financing leaders to discuss how countries can convert demographic change into human capital development, productive employment and sustainable economic growth.

Finance ministers from Bangladesh, Indonesia and Egypt are scheduled to present their countries' experiences, with five minutes allocated to each country. Discussions will focus on population stabilisation, public and private investment in human capital, health and education outcomes, employment opportunities, and inclusive growth.

According to the World Bank Group's background document for the meeting, demographic change is a major force shaping economic and social development, but its potential remains largely untapped in many countries.

Rapid population growth, persistently high fertility rates and gaps in health, education and skills continue to constrain productivity, strain public services and limit economic opportunities for women and young people.

However, sustained investment in quality primary healthcare, education and skills development, alongside structural reforms that encourage private investment and exports, can help countries unlock a demographic dividend.

Such investments can generate more and better-paid jobs while laying the foundation for inclusive and sustainable economic growth, the document says.

The dollar traded around its highest in a year and a half on Monday, as an escalating Middle East conflict kept investors wary ahead of key US inflation data later this week.

That could shape the outlook for interest rates. Oil prices were volatile after Yemen’s Iran-backed Houthis stepped up strikes on Saudi Arabia, while two tankers were attacked over the weekend.

Brent crude futures were down 0.5 percent at $104 a barrel, under a touch of pressure after Sunday’s announcement from US President Donald Trump about an energy ceasefire between Ukraine and Russia.

The futures price is still nearly 45 percent above where it was before the war started, while prices on some physical markets are double those levels.

The dollar index, which tracks the US currency against six others, was slightly down at 102.16 but remained within sight of last week’s 18-month highs.

Weekly data from the US markets regulator shows investors have been adding to their bullish positions in the dollar.

The positions rose to around $36 billion in the week to October 7, from just $8.4 billion three weeks ago, largely at the expense of the euro.

“The US dollar has strengthened recently on the back of negative developments overseas that have boosted its appeal even as market participants have pared back expectations for Fed rate hikes,” MUFG currency strategist Lee Hardman said.

Wednesday’s US consumer inflation report, one of the last major economic releases before the Federal Reserve’s policy meeting this month, could be critical in determining the near-term direction of the dollar.

Data last week showed US consumer sentiment deteriorated further in early October, as the rising cost of living because of the Middle East conflict soured households’ views of the economy.

International energy companies are showing renewed interest in Bangladesh's offshore oil and gas exploration, with Chinese and Turkish state-backed firms taking the lead in purchasing bid documents.

China's Sinopec, CNOOC International, and Turkey's Turkish Petroleum Overseas Company (TPAO) have so far purchased official Promotional Packages, or bid documents, for Bangladesh's 2026 Offshore Bidding Round, according to Petrobangla's bid sales records.
Sinopec bought Information Package and bid documents as well as the specialised Data Package on 23 September to undertake a more detailed assessment of geological structures and potential oil and gas reservoirs.

The purchases make it the latest major international company to move into the more advanced stages of the bidding process.

CNOOC International purchased the official Promotional Package on 17 August, while Turkey's overseas exploration arm TPAO bought the bid document on 23 July.
Bangladesh launched the offshore bidding round for a second time on 24 May, offering 26 hydrocarbon blocks – 11 in shallow waters and 15 in deep-water areas of the Bay of Bengal – to international oil companies for exploration. The deadline for bid submission is 30 November this year.

Petrobangla said efforts are on-going to bring some major energy giants like BP, ExxonMobil, Murphy Oil, Petrobras, and KUFPEC in the bidding process by reaching out to those companies.

The purchases are significant as companies typically need to study geological and technical information before deciding whether to submit commercial bids for offshore blocks.

Md Shoyeb, director (Operation and Mines) of Petrobangla, said 10 companies have so far bought information packages but bid documents were bought by 3 companies.

"We expect that some energy giants will buy bids in the coming days. Discussions are going on with ExxonMobil, BP and several others."

Information packages draw wider interest

The bidding round has also attracted a wider group of companies at the initial information-gathering stage.

According to official sales records, companies that purchased Information Packages include local infrastructure and engineering firms as well as international energy and research companies.

Beringia Power Bangladesh Ltd, KrisEnergy, PEAL Engineering & Construction Ltd and ONODA INC are among the companies that have purchased the packages.

Global energy research and consultancy firm Rystad Energy has also bought an Information Package, while local infrastructure company Max Infrastructure Ltd has joined the list.

Switzerland-based Impression Ventures AG is another buyer, while Chinese state-owned Sinopec International Energy Investment Limited has moved further into the process by purchasing the Information Package along with the Promotional Package and specialised DSP-2 & 10 Data Package.

The Information Package provides companies with initial information to assess opportunities under the offshore bidding round, while the Promotional Package and specialised data offer more detailed material for companies moving towards potential bids.

ExxonMobil, BP and Eni in talks

Bangladesh is also reaching out to some of the world's major oil and gas companies to bring them into the offshore bidding process.

A Bangladesh delegation met executives of ExxonMobil, BP and Eni on 30 September.

US energy major ExxonMobil had contacted Petrobangla soon after the opening of the offshore bidding round and held an online meeting with the state-owned company. Executives representing ExxonMobil's Asia-Pacific region attended the meeting.

According to Petrobangla officials, ExxonMobil said it had previously purchased a data package when the offshore bidding process was launched under the interim government and expressed interest in purchasing bid documents in the current round as well.

Petrobangla officials said the government would continue discussions with ExxonMobil and other US energy companies. Energy Division officials, led by Power and Energy Minister Iqbal Hasan Mahmood, are also expected to visit the United States to engage with major US energy companies.

British energy giant BP has also expressed interest in the offshore bidding round and held an online meeting with Petrobangla officials in July.

Deepwater experience among potential players

Several companies that have shown interest or were discussed during the international outreach have experience in offshore and deepwater exploration in different parts of the world.

Houston-based Murphy Oil Corporation, an independent oil and gas exploration and production company, operates and participates in fields across more than 100 blocks in the deepwater Gulf of America. The company also has offshore exploration interests in Brazil, Vietnam and Côte d'Ivoire.

Brazil's Petrobras is another major deepwater operator, with involvement in 14 major deepwater production-sharing fields in Brazil. The company also signed an agreement in September to explore eight deepwater offshore blocks in Côte d'Ivoire under production-sharing contracts.

Kuwait Foreign Petroleum Exploration Company (KUFPEC) has stakes and interests in offshore exploration and production projects in Brazil, Indonesia, Malaysia and the South China Sea.

KUFPEC is also investing $1.54 billion in gas exploration and related infrastructure, with production targeted for 2028, while it has partnered with China National Offshore Oil Corporation in three separate production-sharing contracts in the South China Sea.

Canadian-incorporated and Singapore-headquartered Valeura Energy is involved in offshore oil exploration in the Gulf of Thailand and also has an interest in a deep, tight-gas appraisal block in Turkey's onshore Thrace Basin.

Bangladesh's headline inflation eased marginally to 8.26% in August from 8.32% in July, driven mainly by falling food prices.

However, non-food inflation remained above 9%, while wage growth fell below the inflation rate, putting continued pressure on households' real income and purchasing power.

The findings were highlighted in the Economic Update & Outlook, September 2026, published today (12 October) by the General Economics Division (GED) of the Bangladesh Planning Commission.

According to the report, food inflation fell to 7.02% in August from 7.16% in July.

In contrast, non-food inflation edged up to 9.32% from 9.28% during the same period, widening the gap between food and non-food inflation to more than 2 percentage points.

GED said the marginal decline in headline inflation masked divergent trends in its major components. While food inflation continued to ease, underlying price pressures in non-food items remained persistent.

Falling rice prices provide relief

Falling rice prices were a major contributor to the moderation in food inflation. Overall rice inflation declined further to -7.99% in August from -6.00% in July.

Inflation for medium rice fell to -5.58% from -4.28%, while fine rice inflation dropped to -6.71% from -4.12%. Coarse rice recorded a steeper decline, with inflation falling to -11.83% from -10.19%.

Consequently, rice's negative contribution to food inflation widened to -27.47% in August from -20.25% in July.

GED said the broad-based decline across coarse, medium and fine rice suggested that the easing was not confined to any single category.

However, the report cautioned that sustained rice deflation at these levels warranted close monitoring, as prolonged price declines could affect incentives for rice producers.

Price developments across other food categories remained mixed.

The contribution of fish and dry fish to food inflation rose sharply to 32.37% in August from 24.87% in July. Meat's contribution declined to 13.51% from 14.75%, while fruits' contribution fell to 13.47% from 17.50%.

Vegetables also provided some relief, with their contribution declining to 24.71% from 25.68%.

Onion played a stronger offsetting role, with its negative contribution to food inflation widening to -7.78% from -3.21%.

Wage growth falls below inflation

Despite the slight moderation in inflation, households continued to face pressure on their real purchasing power as wage growth slowed.

Wage growth declined to 8.05% in August from 8.22% in July. With headline inflation at 8.26%, wage growth was 0.21 percentage points below inflation, compared with a gap of 0.10 percentage points in July.

GED said the August figures marked a reversal of the improvement observed in July, when wage growth and inflation had moved closer together.

"As a result, wage-earning households continued to face pressure on their real purchasing power in August," the report said.

The outlook for household purchasing power will depend largely on the relative movements of wages and inflation in the coming months, particularly whether food price moderation continues and elevated non-food inflation begins to ease.

Transport-related cost pressures persist

Transportation cost inflation increased slightly to 9.41% in August from 9.34% in July. Transport services inflation, however, declined to 18.24% from 18.57%.

Inflation in liquid fuels, octane, petrol and diesel remained unchanged, while LPG inflation edged down to 23.97% from 24.03%.

GED said the broadly stable fuel-product inflation indicated that the decline in headline inflation in August was not driven by any significant change in administered or fuel-related prices.

ADP implementation remains sluggish

Bangladesh's Annual Development Programme (ADP) implementation remained sluggish in the first two months of FY2026-27, with the implementation rate falling to 1.85% from 2.39% a year earlier as expenditure on foreign-funded projects dropped sharply.

According to the GED report, total ADP expenditure during July-August of FY2026-27 stood at Tk 5,709.70 crore, marginally lower than the Tk 5,714.83 crore spent during the corresponding period of FY2025-26.

Although expenditure declined by only 0.1% year-on-year, the implementation rate fell more noticeably because of the larger ADP allocation for the current fiscal year.

In August alone, ADP expenditure amounted to Tk 3,588.52 crore, down from Tk 4,070.18 crore in August 2025, representing a year-on-year decline of about 11.8%.

The monthly ADP implementation rate consequently dropped to 1.16% from 1.71% a year earlier.

GED said there was scope to accelerate implementation in the coming months by improving project readiness, procurement, fund release and field-level execution.

Mixed signals from the economy

The September economic update identified several other areas of concern despite signs of improvement in some indicators.

Revenue collection remained below target despite positive year-on-year growth, while ADP expenditure stayed close to last year's level. However, the ADP implementation rate declined and the utilisation of external financing remained weak.

On the external front, foreign exchange reserves recovered in August after declining in July, supported by strong remittance inflows.

Capital machinery imports also increased, potentially signalling an improvement in investment-related activity. However, declining export earnings presented a contrasting picture, pointing to mixed signals from the external sector.

GED also highlighted concerns over the real appreciation of the taka. Despite relatively limited movements in the nominal exchange rate, the stronger real exchange rate could weaken Bangladesh's price competitiveness in international markets.

Overall, the report suggests that while falling food prices have provided some relief from inflation, persistent non-food inflation, slower wage growth and weak private-sector credit expansion continue to pose challenges to household purchasing power and broader economic activity.

Finance ministers and central bankers meet in Bangkok this week for the annual gatherings of the International Monetary Fund and World Bank, with the global economy buffeted between the US-Iran war’s energy shock, rising debt pressures and the AI boom.

The meetings run from Monday through Saturday in the Thai capital, and will see policymakers tackle some stark choices, with the IMF calling on governments to rein in spending even as vulnerable citizens’ needs may be growing in the face of surging inflation and climate risks.

The week will see a combination of high-level closed-door meetings, public events and policy announcements from the world’s top economic officials.

On Tuesday, the IMF will unveil its global economic forecast, along with detailed regional outlooks through the week, as policymakers set about tackling the challenges darkening the economic horizon. In Bangkok, IMF chief Kristalina Georgieva highlighted how the world economy was being pulled in opposite directions by the negative energy supply shock caused by the US war on Iran and the positive demand shock of the artificial intelligence technology boom.

World Bank President Ajay Banga said AI-powered applications could run on less powerful smartphones and be used in healthcare, education, agriculture and other fields that are development priorities for low-income countries.

“That shift into higher gear (from AI) is what is keeping the world economy growing at three percent,” she told an event on the first day of the meetings, adding the growth was “despite the fact we are being dragged down by the energy supply shock.”

At a press briefing, World Bank President Ajay Banga told AFP his message to developing countries on AI was to focus on building “small AI” applications, rather than trying to compete on capital-intensive models.

“Don’t try and compete with America and China on frontier models and large data centres,” he said. “You don’t have the computing power. You don’t have the electricity. You don’t have the people.”

Banga said AI-powered applications could run on less powerful smartphones and be used in healthcare, education, agriculture and other fields that are development priorities for low-income countries.

Chief among concerns in Bangkok will be the economic fallout of the US war on Iran, which has seen energy prices skyrocket as Tehran’s retaliatory action has targeted Washington’s Gulf allies and curtailed global oil and gas supplies.

The IMF has warned that the effects of the shock have been unequal, with developing countries reliant on imported energy hit the hardest. Despite the crisis, the Fund has called on countries to curb spending on subsidies and instead build their fiscal buffers after years of shocks since the pandemic.

Critics say that approach is just not feasible for low-income countries, and that multilateral lenders need to do more.

“The poorer member states of the IMF and World Bank are in distress from spillovers of the Iran war, rising interest rates in the West, and a climate crisis exacerbated by El Nino,” said Kevin P. Gallagher, director of Boston University’s Global Development Policy Center.

“The IMF and World Bank are not meeting this moment. They need an ambitious response that provides short-term emergency liquidity alongside longer term financing to make their economic growth paths less vulnerable to these shocks.” And the needs are great, according to the United Nations Development Programme (UNDP).

The combined shocks “could leave millions more in poverty as developing countries struggle to sustain support for households,” the UNDP warned in a report on Sunday. “We are witnessing a perfect storm that could throw tens if not hundreds of millions of people back into poverty,” said UNDP Administrator Alexander De Croo.

In the developing world, he added, governments are being forced to make the “impossible” choice between cutting support for their poorest citizens or risking their entire development agenda.

Advanced economies in Europe and the United States have weathered the storm from the rising energy prices better, but have not been immune to surging inflation fuelled by those price increases, which have begun to bleed into other goods.

That inflation has seen central banks around the world raise interest rates in an effort to curb rising prices, tapping the brakes on economic activity.

Still, advanced economies have seen a boom in investment in artificial intelligence technology drive stock markets to new highs and bolster economic growth.

The week will also see several key meetings on the sidelines, including of G20 finance ministers, where spiking bond yields will be high on the agenda.

A notable absence at that meeting will be US Treasury Secretary Scott Bessent, who will skip due to “domestic engagements”, a department official said on Friday.

A UN global poverty index has risen for the first time since its creation in 2010, bringing the number of people affected to 1.2 billion, the United Nations Development Programme reported Monday.

In the 2026 edition of their annual report, the UNDP and the Oxford Poverty and Human Development Initiative research center counted 51.5 million more people living in “acute” poverty compared to the previous year.

UNDP Administrator Alexander De Croo said the increase in poverty should be a “wake-up call for the world.” “Behind these figures are 1.2 billion people facing hardships that reinforce one another: hunger, missed schooling and a lack of clean water or electricity. This is unacceptable,” he said in a press release. More than half of those in acute poverty were children.

However, UNDP said a major factor in the recorded increase was population growth, and new data was only available for 13 of the 108 developing countries covered by the report.

While the total number of people in poverty has increased, the report provides a mixed picture. Some 33 nations have halved the percentage of their people living in poverty as defined by the index in the past 15 years.

Those included six countries in sub-Saharan Africa. Among the countries that have made the most rapid progress were countries in Asia -- China and Vietnam -- UNDP said. As in the previous year, the report found that the majority of the poorest people live in sub-Saharan Africa and South Asia, specifically the Indian subcontinent, the most densely populated region on Earth.

“In Egypt, Nepal, and Tajikistan, both the poverty rate and the number of people experiencing multidimensional poverty have decreased significantly,” the press release said.

In Angola and Zambia, the poverty rate has also declined, but population growth has more than offset this decrease, resulting in an increase in the number of people living in poverty.

The poverty index used in the report includes indicators such as the lack of adequate housing, sanitation, electricity, cooking fuel, food and education.

Bangladesh's letters of credit (LCs) for imports rose to $8.10 billion in September, the highest monthly level in 53 months, as higher fuel and raw material prices pushed up import costs alongside a modest increase in import volumes.

A senior Bangladesh Bank official confirmed the figures to The Business Standard, saying LC openings had last exceeded $8 billion in April 2022, when they reached $8.41 billion.
LC openings rose 22.37% year-on-year from $6.62 billion in September last year. LC settlements, meanwhile, stood at $6.38 billion in September.Bankers said the increase in LC openings largely reflected higher import bills, particularly for petroleum products, as geopolitical tensions in the Middle East pushed up fuel prices. Importers are now paying more for the same volume of fuel, while a modest increase in import volumes has also contributed to the rise. They, however, said the volume in capital machinery imports did not rise.
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The higher cost of fertiliser imports has added to the pressure, as Bangladesh typically imports larger quantities of the agricultural input in August and September.

Higher prices push up import bills

A senior executive of a leading business group told The Business Standard that import prices had risen since the outbreak of conflict in the Middle East, with costs increasing particularly sharply over the past two months.

Citing some examples, another business executive said the cost of importing zinc had risen to $4,200 from $3,200, while the price of flat steel had increased to $575 from $500. The cost of bitumen had climbed to $650 from $450.

Hassan O Rashid, managing director of Prime Bank, said higher fuel prices were a major factor behind the increase in import costs, while a modest rise in raw material imports could indicate a gradual improvement in business activity.

"Raw material imports have also risen somewhat, which could indicate some improvement in business momentum. Although the recovery may be slow, I believe business activity could expand to some extent in the future," he said.

A senior official of a bank said the country had imported more than $200 million worth of fertiliser last month, adding that the cost of importing the same quantity had previously been lower.

Bankers said the increase in import costs appeared to have contributed more to the rise in LC openings than the growth in import volumes.

Imports rise amid trade deficit

Bangladesh's merchandise imports grew by more than 12% year-on-year in the first two months of FY2026-27, with imports totalling $12.20 billion, according to balance of payments data.

The merchandise trade deficit reached $3.82 billion during July and August, as import expenditure exceeded export earnings.

A senior official of a private bank said businesses faced no major restrictions on opening LCs because banks had sufficient dollar liquidity to facilitate import payments.

Bangladesh has secured a $335.78 million concessional loan from China's Export-Import Bank to expand and modernise Mongla Port, including the construction of two container terminals and dedicated yards for cargo handling.

The loan agreement, worth RMB2.404 billion (Tk3,592.8975 crore or $335.78 million), was signed on 10 October, according to a press release from the Economic Relations Division (ERD) of the Ministry of Finance.
Alia Meher, joint secretary at the ERD, and Fengjun Tian, assistant general manager of China Exim Bank, signed the agreement on behalf of their respective sides.

Under the project, the Mongla Port Authority, under the shipping ministry, will build two container terminals equipped with modern machinery. The project will also include a container yard, a container delivery yard, and a cargo-handling yard.

China Exim Bank will provide the loan at a concessional interest rate of 2%, with a repayment period of 20 years, including a five-year grace period, the release said.

The project is expected to modernise port facilities and increase cargo-handling capacity at Mongla Port, Bangladesh's second-largest seaport.

Thai business leaders discussed ways to strengthen trade and investment between Thailand and Bangladesh with Finance Minister Amir Khosru Mahmud Chowdhury in Bangkok today (12 October).

A delegation from the Thai Chamber of Commerce and the Board of Trade of Thailand, led by Chairman Dr Poj Aramwattananont, met the minister to explore cooperation in agriculture, fisheries, agro-processing, halal food, tourism, healthcare and manufacturing, as well as greater access for Bangladeshi products to the Thai market.

Prime Minister's Finance and Planning Adviser Prof Rashed Al Mahmud Titumir, PM's Special Assistant on Investment and Capital Market Affairs Tanvir Shahriar Ghani, Finance Secretary Dr Khairuzzaman Mozumder, Economic Relations Division Secretary Shahriar Kader Siddiky, Chairman of the National Board of Revenue Ahsan Habib and Bangladesh Ambassador to Thailand Andalib Elias were present, according to a release issued by the Bangladesh mission in Bangkok.
The Thai Chamber delegation members include Advisers to the Board of Trade of Thailand Vibeke Lyssand Leirvag and Songsang Patavanich, Deputy Secretary General of the Board of Trade of Thailand and Chief of the Working Committee on South Asia Prim Jitcharoongphorn, Deputy Chief of the Working Committee on South Asia Pojjana Paniangvait and Chairman of the Thailand-Bangladesh Business Council Yongyos Pholtanawat.

Bangladesh must make marine resource management a significant contributor to its gross domestic product (GDP) to achieve its target of becoming a trillion-dollar economy by 2034, State Minister for Planning Zonayed Abdur Rahim Saki said today (12 October).

"Equal importance is being given to rail and inland waterways alongside road transport," he said at a seminar titled "Planning Perspective on the Emerging Industries in the Blue Economy Sector of Bangladesh".

The Centre for Bay of Bengal Studies of Independent University, Bangladesh (IUB), organised the seminar at its DMK Lecture Gallery in Dhaka.

Saki said the government had identified shipbuilding, port management and development as priority blue economy sectors, alongside improving connectivity between ports and industrial production centres.

The Prime Minister's Office has a dedicated Blue Economy Cell to improve coordination among institutions working in the sector, he said.

He stressed cooperation among the government, academia and the private sector to develop the blue economy and build a skilled workforce.

"Universities have a crucial role to play in developing the skilled human resources needed to achieve this goal," he said, thanking IUB and its Centre for Bay of Bengal Studies for drawing the government's attention to the issues.

Javed Hosein, a member of the IUB Board of Trustees, said inefficiencies in port operations and logistics were undermining Bangladesh's competitiveness in international trade.

Unloading a 21,000-tonne fuel oil tanker takes three to five days in Bangladesh, compared with four to five hours in Singapore, he said.

Garment exports also take around 95 days to reach their destinations after the fabric is made, compared with 60 days in Vietnam and 32 days in China. Hosein attributed the delays mainly to corruption.

Rear Admiral (retd) Md Khurshed Alam, director of IUB's Centre for Bay of Bengal Studies, delivered the keynote presentation on the prospects of the blue economy and emerging industries.

IUB Vice Chancellor Prof M Tamim delivered the welcome address, while Prof Bakhtiar Ahmed, dean of the university's School of Liberal Arts and Social Sciences, gave the vote of thanks. Marium Binte Hassan Farin, an IUB Environmental Science and Management student, moderated the seminar.

Bangladesh’s readymade garment (RMG) sector is facing mounting challenges as international clothing retailers and brands diversify their sourcing destinations. Rising production costs, energy shortages, geopolitical tensions and uncertainty over preferential market access after the country’s graduation from the least developed country (LDC) category are putting pressure on exporters.

The challenges are exposing the limits of a business model built on low production costs and competitive prices. Although many manufacturers have started moving towards higher-value products, the transition remains gradual.

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The situation has raised questions about how well Bangladesh can compete as costs rise and trade preferences come under pressure.

At a recent press conference, Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said several major international retailers and brands that had sourced garments from Bangladesh for years were shifting some work orders to other destinations for strategic reasons.

The prolonged energy crisis has further weakened buyers’ confidence, as some suppliers have struggled to meet shipment deadlines.

Meanwhile, geopolitical conflicts and Houthi attacks on commercial vessels in the Red Sea have disrupted shipping routes connecting Asia with Europe and North America.

With vessels increasingly rerouting around the Cape of Good Hope instead of travelling through the traditional Suez Canal, shipping journeys have become longer and more expensive.

These disruptions have also encouraged buyers to consider sourcing from countries closer to European markets, including Egypt and Ethiopia, to reduce logistical complications and shipping risks.

THE LIMITS OF A LOW-COST MODEL

Bangladesh established itself as a major global manufacturing hub for basic garments from the early 1980s, capitalising on an abundant labour force and low production costs.

That model helped the country become a leading apparel exporter in the world. But rising production expenses, combined with continued pressure on garment prices, are making it increasingly difficult to sustain the same competitive advantage.

In the European Union, Bangladesh’s garment export unit price is less than half that of Vietnam, reflecting, in part, the limited share of higher-value products in the country’s export basket.

Eurostat data show that the average unit price of garments exported from Bangladesh to the EU fell to €13.80 per kilogramme in January-June this year, from €15.07 in the same period of 2025.

By contrast, Vietnam’s average unit price rose to €29 per kg from €25.95 over the same period. China’s garment export unit price to the EU fell by 2.18 percent.

Among major garment suppliers to the EU, Bangladesh remains one of the cheapest, with only one supplier recording a lower average unit price.

Although many Bangladeshi manufacturers have started exporting higher-value products, the transition remains gradual. According to industry estimates, high-end garments account for 30 to 40 percent of the sector’s output, suggesting considerable scope for upgrading.

The government has been considering a gradual phase-out of export cash incentives, which supported exporters during the sector’s development, ahead of Bangladesh’s graduation from the LDC category.

On top of that, following LDC graduation, Bangladesh will face growing pressure to compete without relying on existing preferential trade arrangements.

The possible loss of duty-free market access is a particular concern. Unless Bangladesh secures the European Union’s GSP+ facility or negotiates a free trade agreement (FTA), exporters could face higher tariffs in a market that absorbs nearly 60 percent of the country’s garment exports, worth more than $25 billion annually.

Average duties on RMG products could approach 12 percent, further eroding the price advantage of Bangladeshi suppliers.

LABOUR AND INVESTMENT PRESSURES

The challenges extend beyond production costs and trade policy. After nearly five decades of growth, the first generation of garment entrepreneurs is ageing, while some second- and third-generation successors are struggling to sustain the traditional business model.

Several older factories are closing, and fresh investment in the sector is gradually slowing.

The workforce is also shrinking, particularly among women. Long working hours, demanding workloads and relatively low wages have discouraged younger workers from entering the industry.

According to the BGMEA, women made up roughly 80 percent of Bangladesh’s garment workforce between 1980 and 1994. The figure fell to 70 percent by 2005 and to around 53 percent in both 2021 and 2023, according to studies by the Ethical Trading Initiative, GIZ, BRAC University and the Bangladesh Institute of Development Studies (BIDS).

Industry insiders say younger workers increasingly prefer occupations such as driving auto-rickshaws or operating small shops, which they perceive as offering “greater flexibility and a more comfortable lifestyle”.

Automation and artificial intelligence are adding another dimension to the challenge, as factory owners adopt new technologies to reduce costs and remain competitive.

Meanwhile, some female garment workers have moved to countries such as Jordan, attracted by higher salaries, greater dignity and better employment benefits.

Despite these difficulties, Bangladesh has made significant progress in workplace safety and compliance. Inspections and remediation initiatives under the Accord and Alliance have improved factory safety standards, helping strengthen the country’s international reputation.

However, improved compliance alone will not guarantee continued competitiveness. Exporters must also contend with rising costs, supply-chain disruptions and the risk of losing preferential access to major markets.

THE WAY FORWARD

Bangladesh retains important advantages, including substantial installed production capacity and a large, experienced workforce capable of serving international retailers and brands.

The challenge is to build on these strengths while reducing dependence on price competition in basic garments.

One option is to diversify export destinations. Markets such as India, Japan, South Korea, Malaysia, Brazil and Argentina could help reduce dependence on traditional Western markets.

Bangladesh has been pursuing trade agreements to preserve preferential access after LDC graduation. These initiatives include an Economic Partnership Agreement with Japan and a Comprehensive Economic Partnership Agreement with South Korea, alongside negotiations with other countries.

According to BGMEA’s Mahmud, international buyers had become concerned about concentrating too much of their sourcing in Bangladesh, prompting them to diversify their supply chains.

Nevertheless, Bangladeshi exporters are increasingly targeting Asian markets, particularly Japan, India and South Korea.

He added that the BGMEA had lobbied the Ministry of Commerce to negotiate FTAs with countries such as Brazil and South Africa, where Bangladeshi exports face tariffs exceeding 25 percent. Such agreements could help exporters secure zero-duty access.

The association has also urged the government to negotiate with the United States to waive the 10 percent duty on garments using US cotton and man-made fibres. Expanding exports of higher-value man-made fibre products could further improve the sector’s prospects.

However, market diversification and trade agreements will need to be accompanied by improvements in domestic production conditions.

Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said the garment industry was confronting numerous domestic and international challenges, with rising business costs being a central concern.

He emphasised that Bangladesh must strengthen its competitiveness by reducing production expenses, increasing prices per unit through value addition, ensuring adequate energy supplies and lowering logistics costs.

The sector’s long-term sustainability will ultimately depend on whether Bangladesh can move beyond its traditional reliance on low-cost production, according to the economist.

Modernising factories, upgrading products, diversifying markets and securing favourable trade arrangements will be crucial as the country navigates the post-LDC era, he said.

The Bangladesh Securities and Exchange Commission (BSEC) will publish a draft of the revised initial public offering (IPO) rules within the next couple of days for public consultation, aiming to make the process of listing new companies more effective and investment-friendly.

BSEC Chairman Masud Khan disclosed this today while addressing a seminar at the DSE Multipurpose Hall, organised to mark World Investor Week 2026.

He said the commission was working on several important initiatives to develop and deepen the country’s capital market, including reforming IPO rules, framing direct listing regulations, promoting open-end mutual funds and introducing new investment products.

Once implemented, the initiatives are expected to expand capital market activities and create more investment opportunities, he added.

Emphasising investor protection, the BSEC chairman said it was essential to scrutinise companies’ financial information and assess their fundamentals before allowing them to raise capital through IPOs.

Investors should carefully examine a company’s financial statements, cash flow from operating activities and actual financial capacity before making investment decisions, he said.

He also cautioned investors against making decisions based on promises of unusually high returns or unverified information.

Ensuring transparency, accountability and investor confidence in the capital market requires coordinated efforts by the regulator, stock exchanges, media and investors, Masud Khan said.

He expressed hope that the ongoing reform and development initiatives, including the revision of IPO rules, would help make the country’s capital market more efficient and sustainable.

Speaking at the seminar, Dhaka Stock Exchange (DSE) Chairman Mominul Islam stressed the need for effective communication to inform the public about positive initiatives, reforms and development activities in the capital market.

He also underscored the importance of strengthening the institutional capacity, governance and professional efficiency of brokerage houses, merchant banks and asset management companies to build lasting investor confidence.

A transparent, strong and sustainable capital market is essential for supporting Bangladesh’s industrialisation and economic development, he said, calling for coordinated efforts by all stakeholders.

Highlighting the theme of World Investor Week 2026, the DSE chairman called for greater awareness of digital fraud, investment decisions based on reliable information and responsible actions by all concerned to protect investors’ interests.

The seminar was chaired by Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA).

BSEC Commissioners Tanvir Habib Rahman, Advocate Nahid Mahtab, CFA Md Nafiz Al Tarik and Hossain Shahadat, FCA, also attended the event as special guests.

Dhaka stocks fell for another session today (12 October), with nearly 79% of traded companies losing value on the Dhaka Stock Exchange (DSE), as economic uncertainty and weak sentiment kept investors on the sidelines.

The benchmark DSEX index lost 46.2 points, or about 0.85%, to close at 5,404, down from 5,451 in the previous session. Turnover fell 20% from the previous session to Tk453 crore.

Turnover stood at Tk453 crore, down 20.4% from Tk566 crore in the previous trading session, reflecting weaker trading activity amid cautious investor sentiment.

According to DSE market data, 385 issues were traded yesterday. Of them, 303 declined, 47 advanced and 35 remained unchanged.

The DS30 index, which represents blue-chip stocks, fell nine points to 2,095. However, the DSES, the Shariah-based index, rose 12 points to 1,071.

Market participants said gas and electricity shortages are disrupting production and business operations, hurting corporate earnings and profitability. Lower profits could also affect dividend payouts, while rising operating costs are squeezing margins.

Analysts said the market remained under pressure due to weak buying interest and low trading activity. Speculative trading has kept investor interest concentrated in overvalued stocks, while fundamentally undervalued stocks could become more attractive as treasury rates have fallen significantly in recent months.

In its market commentary, EBL Securities said the capital market remained entrenched in a prolonged downward trajectory as concerns over weak corporate earnings, persistent domestic challenges and geopolitical uncertainty continued to erode investor confidence.

The brokerage said market indices remained on a downward trajectory from the beginning of the session as sector-wide sell-offs reflected widespread risk aversion and persistent selling pressure.

On the sectoral front, textile stocks accounted for the largest share of turnover at 25%, followed by general insurance at 10.8% and engineering at 9%.

Financial institutions led sectoral losses, declining 3.6%, followed by mutual funds, which fell 2.9%, and general insurance, down 2.7%. Jute stocks, however, posted the highest sectoral gain of 2.4%.

National Bank led the gainers, rising 8.33%, followed by GBB Power, which gained 8.26%, and Prime Textile Spinning Mills, up 8.21%.

Among the biggest losers, MBL 1st Mutual Fund fell 9.88%, Phoenix Finance 1st Mutual Fund declined 9.76%, and CAPM IBBL Islamic Mutual Fund dropped 9.49%.

Evince Textiles, Beximco and Sonali Aansh Industries were the most actively traded stocks by turnover.

The bearish trend also continued on the Chittagong Stock Exchange (CSE). The CASPI, the broad index of the port-city bourse, fell 84 points to 14,551, while the CSCX declined 53 points to 8,946. Turnover on the CSE stood at Tk29 crore.

A Cabinet meeting today (12 October) discussed expanding the use of solar power as a renewable energy source and accelerating the implementation of ongoing development projects.

The meeting was held at the Secretariat in the afternoon with Prime Minister Tarique Rahman in the chair, said a release issued by the PM's Press Wing.

The meeting emphasised expanding the use of renewable energy in the country's energy sector and speeding up the implementation of ongoing development projects.
Various government activities and development-related issues were also discussed at the meeting.

Most stock markets rose on Monday as oil prices tumbled after Donald Trump announced an "energy ceasefire" between Russia and Ukraine, offsetting a fresh wave of Houthi attacks on Saudi Arabia.
Both main crude contracts sank more than 1% following the US president's declaration, even as it sparked astonishment in Kyiv, which also said Moscow had struck multiple power plants in the country.

"Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine," Trump said early yesterday (11 October) on Truth Social. "Both parties have agreed. Do not break it!"

His post came after he called on Ukrainian President Volodymyr Zelensky to halt attacks on Russian refineries and said it was "time for Ukraine to get a new president" who would finally settle the war.

Zelensky appeared to express surprise at the announcement, saying he was seeking further details, but added that "Ukraine supports the ceasefire, and it is important that Russia support it as well".

Russia has yet to confirm its agreement.

While the announcement was welcomed by Ukraine's allies, Trump had come under fire after declaring a temporary easing of US sanctions on Russian diesel, which European leaders and Kyiv said would only embolden Russian President Vladimir Putin.

The drop in oil prices reversed an initial spike that came in response to Houthi attacks on Saudi Arabia at the weekend.

At least a dozen people were killed at Riyadh's international airport on Saturday — the deadliest attack on Saudi soil for more than a decade — and another person died following a second strike on Sunday.

The assaults marked a sharp escalation in the Yemen war, where Riyadh has long provided military support to the internationally recognised government against the Houthis.

The Iran-backed group on Sunday claimed multiple attacks over the previous 24 hours and threatened to continue targeting the kingdom's transit hubs, calling them "a theatre of operations for our forces".

"The market is no longer paying full geopolitical premium on every headline, and that is probably the most useful signal in the morning price action," wrote SPI Asset Management's Stephen Innes.

"A strike matters if it threatens real barrels, shipping lanes, refining capacity or insurance costs; otherwise, the market is getting increasingly reluctant to pay up simply because the geopolitical ticker flashes red.

"The physical market remains tight enough to keep Brent above $100, but futures are refusing to treat every new escalation as the start of another straight-line inflation shock."

The drop in oil prices supported most Asian markets, with Hong Kong, Sydney, Singapore, Wellington and Manila all rising.

But Seoul and Taipei were dragged down by losses in chipmakers SK hynix, Samsung and TSMC. Tokyo was closed for a holiday.

US futures were sharply higher.

Investors are also preparing for the release of key US inflation and retail sales data, which could play a major role in the Federal Reserve's interest rate decisions. The bank is due to meet at the end of October.

The start of the earnings season is also in focus this week, with banking giants JP Morgan, Goldman Sachs and Bank of America due to report.

Technology giants will follow later in October and in November, with traders keen to gauge the outlook for the AI sector given the vast sums of money pumped into it in recent years.

BRAC Bank has been granted permission to appoint up to three representative directors on behalf of a single shareholder company, following Bangladesh Bank's relaxation of a provision of the Bank Company Act, 1991.

In a circular issued today (12 October), the central bank said it had relaxed Section 23(1)(kakaka) of the Bank Company Act, 1991, for BRAC Bank under the powers conferred by Section 121 of the same law.

As a result, a shareholder company holding 10% or more, but no more than 50%, of the bank's shares may appoint up to three representative directors to its board.

Under Section 23(1)(kakaka) of the Bank Company Act, a single institution or company is not permitted to appoint more than one representative director to a bank's board. Under the existing provision, therefore, a shareholder company can appoint only one representative director.

Bangladesh Bank's decision relaxes this restriction specifically for BRAC Bank. However, no single institution will be allowed to appoint more than three representative directors.

A Bangladesh Bank official said BRAC owns 46% of BRAC Bank's shares. Under the existing law, the organisation could not appoint multiple representative directors to the bank's board. With the provision relaxed for BRAC Bank, it will now be possible for BRAC to appoint more than one representative director, subject to the limit of three.