Japanese companies are increasingly looking to Bangladesh, attracted by its large consumer base, growing middle class and potential for investment.

Surveys by the Japan External Trade Organisation (JETRO) show that consumer goods are among the main areas of interest of the firms.

Over the years, the organisation has also identified Bangladesh as one of South Asia’s most promising destinations for business, citing its large population and rising purchasing power.

Japan has spent years planning to expand investment and relocate more industries to Bangladesh, particularly in garments and textiles, under its Big B plan, or Bay of Bengal Industrial Growth Belt.

The plan envisages an industrial corridor linking Dhaka, Chattogram and Cox’s Bazar, modelled on the industrial hubs of Tokyo and Osaka that developed between the 1960s and 1980s and helped drive industrial growth of the island nation.

A few years ago, more than 85 percent of the nearly 338 Japanese companies running businesses in Bangladesh told JETRO they wanted a free trade agreement between the two countries to boost bilateral trade and investment.

More recently, nearly 72 percent said they planned to expand in Bangladesh within a year or two, viewing the country as a promising market.

In February this year, Bangladesh and Japan signed an Economic Partnership Agreement (EPA) to strengthen trade and investment ties.

Kazuiki Kataoka, country representative of JETRO Bangladesh and the current president of the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI), said many Japanese companies are relocating from China to Bangladesh, drawn mainly by lower labour costs and the size of the domestic market.

The companies are investing mainly in readymade garments (RMG) and consumer goods, he said, as a large and growing middle-income population drives demand.

“Mitsubishi and Toyota, for example, have already approached the government for help with producing cars in Bangladesh. Japanese firms are also interested in fast-moving consumer goods and food processing,” he added.

According to Kazuiki, the domestic market is the main attraction.

He said that Japan has a long-term plan for Bangladesh, which explains why the close relationship between the two countries is being emphasised during Prime Minister Tarique Rahman’s visit.

“Japan is now focused on Bangladesh as a market in its own right, rather than using the country as a gateway to other markets,” Kazuiki added.

Tareq Rafi Bhuiyan (Jun), the immediate past president of JBCCI, said Big B, or the Free and Open Indo-Pacific (FOIP), was adopted mainly with Bangladesh’s market in mind. Regional issues are now also being discussed to some extent under the FOIP framework.

He said that several major projects were also planned with the domestic market in mind, including the third terminal at Hazrat Shahjalal International Airport in Dhaka, the deep-sea port and power plants at Matarbari, and the Japanese economic zone at Araihazar.

Matarbari also has strategic importance, as the port is intended to serve as a hub linking the Indian subcontinent with ASEAN and East Asian countries, including Japan.

In July, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) launched a dedicated Japan desk to tap the market’s potential.

BGMEA President Mahmud Hasan Khan said Bangladesh’s apparel exports to Japan have already exceeded $1 billion, but there is considerable scope to increase them further.

He stressed the need for single-stage rules of origin under the agreement, which he said would make exports simpler and cheaper.

Currently, about 98 percent of Bangladeshi goods enter Japan duty-free under the least developed country (LDC) category. Japan is the only Asian country where Bangladesh’s exports have exceeded $1 billion over the past decade.

Annual exports to Japan have topped $1 billion since the fiscal year 2015-16, while two-way trade exceeded $3 billion in FY18, according to the Export Promotion Bureau (EPB).

Bangladesh imports iron and steel, vehicles and accessories, ships, machinery, mineral fuels, medical and surgical instruments, plastics and electrical machinery from Japan, according to Bangladesh Bank data.

Industry people say the “China plus one” strategy adopted by industrialised countries has made the South Asia region a natural destination for investment. They point to South Asia’s economy of nearly $5 trillion, a population of almost 2 billion, a largely young workforce and a strategic location.

Business leaders say more than 350 Japanese companies now operate in Bangladesh across trading, manufacturing and infrastructure.

Japanese manufacturers, from motorcycle makers to clothing firms, create jobs and help upgrade technology. Small and medium-sized Japanese enterprises are also exploring opportunities in Bangladesh’s information technology, logistics and other service sectors.

Business leaders in both countries expect more Japanese companies to enter Bangladesh once the EPA comes into force.

The country’s only diammonium phosphate (DAP) fertiliser factory has been shut for nearly four months due to a shortage of phosphoric acid -- a key raw material -- with a government approval delay holding up fresh imports.

The DAP Fertilizer Company Limited (DAPFCL), located in Anwara upazila of Chattogram, suspended production on June 28.

The Bangladesh Chemical Industries Corporation (BCIC) subsequently floated a tender to procure 60,000 tonnes of phosphoric acid in three lots, but the purchase is still awaiting government approval.

According to DAPFCL, the estimated cost of procuring the raw material is $64.8 million, equivalent to around Tk 800 crore. Each lot comprises 20,000 tonnes.

The lowest bids for the three lots were $1,079, $1,087 and $1,071.90 per tonne, respectively.

Officials said phosphoric acid prices had risen since March amid tensions in the Middle East, a major market for the chemical. Bangladesh purchased the raw material at around $750 per tonne at the beginning of this year, they added.

Mainul Haque, managing director of DAPFCL, told The Daily Star that the factory had set a production target of around 100,000 tonnes for the current fiscal year but had been unable to produce any fertiliser over the past four months.

“We have been sourcing ammonia from KAFCO and Chattogram Urea Fertilizer Company Limited (CUFL), but phosphoric acid depends on imports and is procured through tenders. BCIC conducts the tender process, and we do not know why it has yet to complete the import of the raw material,” he said.

Md Moniruzzaman, BCIC’s director (commercial, production and research) said, “The proposal to purchase 60,000 tonnes of phosphoric acid through three lots at the lowest bids had been forwarded through the Ministry of Industries and was awaiting government approval.”

He said the government had been supplying gas to most fertiliser factories to keep production running in response to domestic demand.

Moniruzzaman noted that of the country’s six major fertiliser factories, CUFL, Karnaphuli Fertilizer Company Limited (KAFCO), Shahjalal Fertilizer Company Limited and Ghorashal were receiving gas.

Jamuna had also received gas until Sunday, he said.

Factory officials said DAPFCL had also remained shut for at least a month in April and May due to gas shortages. The current shutdown, however, has been caused by a lack of raw materials.

Even after approval for the import is secured, it could take another one and a half to two months for the factory to resume production, they said.

The plant typically produces around 500 tonnes of fertiliser a day using imported phosphoric acid and ammonia supplied by Kafco and CUFL. It has two production units with a combined capacity of 800 tonnes per day.

Established to meet domestic demand for nitrogen- and phosphorus-based fertilisers, DAPFCL has been in commercial operation since 2006 under BCIC, which operates under the Ministry of Industries.

Bangladesh relies heavily on imports to meet its DAP fertiliser demand. According to BCIC and the Ministry of Agriculture, annual demand for DAP stands at around 1.507 million tonnes, while approximately 1.4 million tonnes are imported.

Bangladesh will ask Japan to reconsider the interest rate on loans from Japan, which has risen to 3.5%, during Prime Minister Tarique Rahman's four-day visit to the country.

The government will also seek 40-year loans with appropriate grace periods for priority infrastructure projects and an extension of concessional financing for three years beyond Bangladesh's graduation from the least developed country (LDC) category.

The proposals are outlined in a government report on Bangladesh-Japan bilateral economic cooperation prepared ahead of the prime minister's visit, which begins today.

The prime minister left Dhaka early Monday for Tokyo.

Economic Relations Division (ERD) officials said the Japan International Cooperation Agency's (Jica) interest rates are revised every six months, which rose to 3.5% from 3.05% in October.

The government fears the rate could rise further, increasing development financing costs, straining public finances and delaying project implementation.

According to the ERD report, Bangladesh received highly concessional Japanese loans as an LDC, with interest rates at 0.1% until 2015 and below 1% until a few years ago.

Jica's standard rate for eligible LDCs and low-income countries rose from 0.7% in April 2020 to 3.5% from 1 October 2026, with a 30-year repayment period and a 10-year grace period.

Bangladesh will argue that Japanese official development assistance (ODA) should retain its concessional character rather than approach market-based financing costs.

According to the report, Bangladesh acknowledges changes in international interest rates and Japan's own financing conditions. However, it considers continued access to concessional Japanese loans essential given Bangladesh's current economic circumstances.

High domestic borrowing costs, limited fiscal space, substantial infrastructure financing needs, and exchange rate and external-sector risks have added to the pressure. Bangladesh must also sustain investment while continuing structural reforms, the report says.

Concern over concessionality

The ERD report warns that higher interest rates reduce a loan's grant element, which measures how favourable its terms are compared with market financing. If it falls below the required threshold, the loan may no longer qualify as concessional.

Maintaining access to affordable, long-term development financing is therefore important for Bangladesh, particularly as international borrowing costs rise and pressure on external debt repayment and debt sustainability grows.

Bangladesh will therefore seek longer repayment periods and favourable rates for priority infrastructure projects. The government argues that large infrastructure investments require substantial upfront funding, while their economic benefits often take years to materialise.

Longer repayment periods and lower interest rates would ease immediate repayment pressures and improve the financial sustainability of these projects.

3-year extension after LDC graduation

Bangladesh will also seek continued access to concessional financing for three years after graduating from LDC to ensure a smoother economic transition, says the report.

Graduation could limit access to preferential financing and raise borrowing costs. Bangladesh wants Japan to factor these risks into the terms of future assistance.

Bangladesh has requested a three-year deferral of its LDC graduation for a smoother transition. The report says continued concessional financing would help Bangladesh manage the transition and pursue its development goals.

Japanese technical assistance

Bangladesh will also seek more grant-based technical assistance from Japan to simplify project approval procedures and accelerate implementation.

The ERD plans to emphasise Japanese expertise and technology in project preparation, institutional capacity-building and improving the efficiency of public investment.

Officials said grant-based technical assistance could strengthen feasibility studies, project design and preparation, reducing implementation difficulties and improving project quality.

The assistance could also help government agencies develop institutional capacity by drawing on Japanese experts' knowledge and experience.

The ERD has proposed establishing a Public-Private Partnership (PPP) Project Preparation Facility to attract Japanese private investment and technology to infrastructure projects.

The proposed facility would support feasibility studies, financial modelling, and risk mitigation, helping build a pipeline of PPP projects. It is expected to reduce preparation time and create more opportunities for Japanese private-sector participation.

Improving the investment climate in economic zones will also feature in the discussions. The government wants to simplify administrative and regulatory procedures, streamline approvals and make one-stop services more effective.

The report also highlights opportunities to draw on Japan's experience in improving public investment efficiency and strengthening public financial management.

Better project selection, preparation, approval and implementation could help Bangladesh secure greater economic and social returns from its limited public resources, the ERD said.

Sri Lanka is determined to accelerate its transition to renewable energy spurred by soaring oil prices, but faces major constraints, its energy minister told AFP.

“There are some wake-up calls... pushing us to move more to renewable energy,” Anura Karunathilaka said.

“If we can get as much as possible from renewable energy, that would be our policy in the next few years.”

The island nation, which imports all its oil and gas needs, has been hit hard since the US and Israel launched their war on Iran, which in turn choked off the strategically critical Strait of Hormuz.

Sharp increases in fuel, gas and electricity prices, rationing and inflation at its highest in three years have dealt a painful blow to an economy only just recovering from its worst-ever crisis in 2022.

The state and the public have paid a heavy price. The energy ministry says the government has at times spent up to 30 percent of its foreign exchange reserves in a single month to pay for fossil fuel imports.

Sri Lanka’s energy transition targets were set before the war.

By 2030, the country aims to generate 70 percent of its electricity from renewable sources, up from around 60 percent currently, including about 40 percent from hydropower.

PROMISE TO THE PEOPLE

“We will probably have to go beyond 70 percent,” Karunathilaka said.

But the transition is proving more complicated than expected.

Some communities oppose wind turbines.

The island has enormous potential for wind power -- estimated at 30 gigawatts-- but anger is growing on the northwestern Mannar peninsula, where residents blame turbines operating since 2020 for causing floods, driving fish away and threatening migratory birds.

The minister said he had listened to their concerns. “We have promised the people of Mannar... that only projects already approved or under construction will go ahead,” he said, adding that future wind farms would be built elsewhere.

Another obstacle is technical.

“The problem is the constraint in the transmission lines, availability and also control of the grid, as well as fluctuations in supply and demand,” Karunathilaka said.

“From next year onwards, we have planned to enhance our transmission capacity, adding five major transmission network lines.”

But that will not be enough.

The success of solar power, particularly the installation of photovoltaic panels on homes and businesses, has created sharp fluctuations in electricity supply, which often exceeds demand during daylight hours.

PRICING CHANGES

This month a six-hour blackout struck across the island after the national grid tripped, possibly because solar power generation exceeded consumption.

“Sometimes we have to curtail certain solar power plants to maintain the stability of the system. That is why some people have the perception that the government is not encouraging solar power,” Karunathilaka said.

“But that is not true.”

By 2029, the government hopes to increase its solar power generation capacity to nearly 4,400 megawatts, a 388 percent jump from 2024, he said.

However, he added that the government would have to change how solar electricity was priced.

Under the existing system, private producers can feed electricity into the grid during the day, when generation is at its peak and demand is low, then draw back the same amount for free at night, when electricity is more expensive.

The arrangement is financially unsustainable for a fragile economy, the minister said.

“The additional cost is borne by the state,” he said. “We think it is unfair to pass that burden on to the general public, so we will propose a new financial model that is fair to both solar producers and consumers.”

The government also plans to expand electricity storage using batteries, Karunathilaka said.

“The system, investment and infrastructure are not yet ready to completely replace coal and naphtha,” he warned.

“But... in 10 to 15 years, we will also be reducing naphtha and coal, and we will be able to achieve 90-95 percent renewable energy.”

Eight private commercial banks are set to receive regulatory relief to extend Tk 1,700 crore in fresh loans to debt-laden City Group, in a move aimed at keeping its operations running and ensuring supplies of essential commodities ahead of Ramadan.

The banks are City Bank, Mutual Trust Bank, Prime Bank, Dutch-Bangla Bank, Southeast Bank, Trust Bank, NCC Bank and Pubali Bank.
In consultation with the government, the decision in principle was taken at a meeting between the eight banks and Bangladesh Bank Governor Mostaqur Rahman at the central bank’s headquarters yesterday, according to meeting sources.

At the lenders’ request, Bangladesh Bank plans to exempt them from Section 27(Ka Ka) of the Bank Company Act, 1991, which restricts lending to loan defaulters. The central bank intends to use its authority under Section 121 to grant the exemption.

Bangladesh Bank plans to exempt them from Section 27(Ka Ka) of the Bank Company Act, 1991, which restricts lending to loan defaulters

The conglomerate owes around Tk 26,000 crore to 48 domestic and foreign banks and financial institutions, some of which have already classified its loans as defaulted. The exemption would allow the banks to extend fresh loans and open letters of credit (LCs) for City Group despite its default status.

A source present at the meeting said a syndication agreement between the eight banks and the group is nearing completion.

Under the proposed syndication, City Bank would provide Tk 300 crore, while each of the other seven banks would contribute Tk 200 crore, the source said. Most of the lenders have already approved the funding at their board meetings.

The proposed rescue plan has, however, exposed differences among lenders over how to handle City Group’s financial distress.

A central bank official, speaking on condition of anonymity, said Bank Asia, BRAC Bank and Eastern Bank PLC had sought to withdraw from the revival plan and pursue legal action against the group.

Representatives of the three banks were invited to yesterday’s meeting and urged to join the rescue effort, the official said.

Meanwhile, some lenders, including HSBC, have already classified City Group’s loans as defaulted. The meeting source said other banks would also have to classify the loans in October under normal banking rules, requiring them to make provisions against them.

The lenders would reschedule the group’s existing loans only if it made a down payment, with no exceptions. “The client is not in a position to pay, so the banks cannot reschedule the loans,” the source said.

A managing director of a private commercial bank said the BB had not agreed to extend the exemption to all City Group companies and had asked the lenders to select five entities.

Opening letters of credit for those five companies would require approval from the finance ministry, which the BB could not grant on its own, he said.

“BB has promised to pursue it with the ministry, fully sincerely,” he added.

The group’s importance to the domestic market for essential commodities is another argument for the proposed intervention.

The chief executive of another bank, who requested anonymity, said City Group accounted for roughly 30 percent of the sugar market, 40 percent of the edible oil market and 30 percent of other commodities.

“Roughly a third of the market could vanish suddenly (if City Group cannot operate),” he said. “In such a crisis, people exploit shortages and raise prices, and the poor suffer most. That is a major motivation, not only the banks’ own losses.”

He also said the group had used foreign currency to import machinery, which the BB views as a national asset.
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The central bank had previously instructed banks not to classify City Group’s loans as defaulted until last September. With that deadline having passed, several lenders have begun classifying the loans.

Yesterday’s meeting was also attended by BB Deputy Governors Kabir Ahmed and Sarwar Hossain, along with City Group Managing Director Md Hasan.

Bank representatives included Association of Bankers, Bangladesh Chairman and City Bank Managing Director Masrur Arefin, as well as the managing directors of Mutual Trust Bank, Bank Asia, BRAC Bank, Prime Bank, EBL, Pubali Bank and Southeast Bank, among others.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, told The Daily Star that City Group had never defaulted before and that there were no allegations against it.

“Everyone wants the group to overcome its difficulties and recover,” he said, adding that all banks wanted to support the conglomerate, although its loans would need to be restructured or rescheduled.

The central bank has also advised lenders against taking decisions that could further worsen the group’s situation, he said.

Mahbubur pointed to the widespread use of City Group’s Teer-branded products in households across the country.

Building a business group of comparable scale would take considerable time, he said.

The group’s products have become less available in the market because of its financial difficulties, but support could help it regain its former position, he added.

According to data, a large share of City Group’s borrowings is concentrated among a few lenders, including HSBC, Standard Chartered, City Bank, United Commercial Bank (UCB), EBL and BRAC Bank.

The Bangladesh Securities and Exchange Commission (BSEC), the country's capital market regulator, has expressed strong dissatisfaction over recent market surveillance activities and investigations conducted by the Dhaka Stock Exchange (DSE).

Following the Durga Puja holiday break, BSEC held a meeting with top DSE officials today (25 October) to discuss market monitoring and surveillance operations, emphasising the urgent need for result-oriented, purposeful, and meaningful probes.

During the session, the commission reviewed DSE's inquiry reports and surveillance mechanisms, with the BSEC chairman highlighting that most DSE investigations lacked accurate data and concrete evidence.

These flawed reports made it impossible to identify manipulators, conduct proper judicial proceedings, or enforce penalties, ultimately forcing authorities to acquit suspects without trial, BSEC observed.

The regulator said investigations conducted without clear objectives or sufficient evidence create fear and instability rather than improve market discipline. It said routine surveillance must continue, but probes should be logical, targeted and supported by evidence.

The meeting was attended by DSE Chairman Mominul Islam, Managing Director Nuzhat Anwar, shareholder directors Minhaz Mannan Emon and Mohammad Shafiqul Islam Bhuiyan, and the exchange's acting chief regulatory officer. BSEC was represented by Chairman Masud Khan, Commissioners Nahid Mahtab and Md Nafeez Al Tarik, and senior surveillance officials.

This intervention comes at a critical time as the capital market has faced a sharp downturn since August despite an initial surge under the new Commission.

DSE data shows the primary DSEX index dropped by nearly 450 points, market capitalization plunged by approximately Tk27,000 crore due to heavy selling pressure, and daily turnover shrank drastically from Tk1,200 crore to around Tk400 crore.

Market stakeholders and large institutional investors, previously, have voiced serious concerns, alleging that over-surveillance and aggressive inquiries – such as issuing letters to brokerage houses or probing large buy and sell orders – have panicked investors.

They argue that forming inquiry committees, demanding transaction explanations, and issuing penalty notices whenever share prices rise creates an atmosphere of fear, often based on suspicion, which ultimately forces major investors into inactivity.

DSE welcomes meeting

DSE shareholder director Emon welcomed the BSEC initiative, saying aimless investigations erode investor confidence and undermine the market's independent functioning.

He said the meeting offered an opportunity to address a longstanding concern, as such probes weaken confidence in both individual stocks and the broader market.

The commission chairman affirmed that routine investigations would continue, but stressed that they must be accurate, meaningful and result-oriented, Emon said.

BSEC chair calls for meaningful probes

Meeting sources said, the BSEC chairman shared that he has numerous investigation reports where individuals had to be acquitted without any penalty.

The chairman then asked: "On what basis did you conduct these probes? If an investigation lacks accurate data and evidence, what is the purpose of such a probe?", said one source.

The chairman said this type of probes have no impact other than creating fear and instability. He instructed the DSE surveillance team to refrain from carrying out such probes.

Sources said, Chairman Masud Khan expressed dissatisfaction with the overall oversight mechanism, surveillance service systems, and monitoring arrangements of the stock market.

He inquired where the root problems lie in DSE's investigations, how the stock exchange manages its service systems, and what causes these adverse market reactions, seeking an unbiased opinion from everyone present.

Meanwhile, DSE representatives explained that they follow standard procedures whenever their surveillance software triggers a red alert, and keep the commission informed.

Beyond this, investigations are also carried out based on various directives issued by the Commission, with the findings subsequently reported back. In connection with these matters, the stock exchange issues various queries to brokerage houses on different issues and ultimately conducts investigation activities based on those responses.

The DSE submitted nearly 150 investigation reports to the commission in 2025, including around 50 initiated at its direction and nearly 100 triggered by the exchange's own surveillance system. A similar number of reports were submitted in 2026.

Multibillion-dollar Japanese investment in Bangladesh and Japan-espoused ambitious regional-connectivity scheme centred on the proposed Matarbari deep-sea port are likely to dominate bilateral cooperation talks during Prime Minister Tarique Rahman's tour.

The prime minister was set to leave Dhaka for Tokyo on Sunday night for a four-day visit to Japan with wide agenda of engagement with his Japanese counterpart and other high-ups.

Officials have said Bangladesh would seek to turn Japan's search for alternatives to China into a fresh wave of investment by offering policy support and necessary baits.

The visit, beginning on Monday, comes as Dhaka seeks to attract Japanese manufacturers relocating production under the "China-plus-one" strategy, while Tokyo wants Bangladesh to become a key link in an industrial corridor connecting northeastern India and the Bay of Bengal with south-east Asia.

The two objectives offer an opportunity to reshape economic relations between the countries, potentially bringing new factories, jobs and technology in Bangladesh while strengthening its position as a regional manufacturing and logistics hub.

According to reports, during the visit, Japanese private-sector investors are likely to announce US$6.35 billion worth of investment in next five years.

Officials said Bangladesh was preparing to propose an investment and cooperation package worth $13.8bn for 2026-31, covering 12 priority sectors.

A declaration on Japanese investment worth $6.35 billion is also anticipated, although the precise commitments and financing arrangements remain subject to discussions.

The package envisages $3.45 billion for transport and urban connectivity, $3.14 billion for integrated industrial, port and commercial hubs, including Matarbari, $1.57 billion for manufacturing and electronics, $1.26 billion for energy and green transformation, and $940 million for climate-resilient infrastructure.

The remaining $3.45 billion would cover sectors like agriculture, pharmaceuticals, information technology, the blue economy, tourism and small and midsize enterprises.

For Dhaka, the immediate priority is to attract Japanese companies seeking to diversify their manufacturing bases beyond China.

Japan announced incentives in 2020 to encourage companies to diversify supply chains, including through relocation to south-east Asia. Vietnam and other regional economies have attracted investment, but Bangladesh has yet to capture a comparable share of the opportunity.

Bangladeshi officials hope the Tokyo trip will help change that, offering Japanese investors opportunities to establish factories, expand manufacturing and create employment.

Recent visits by senior executives from Toyota, Mitsui and Marubeni have added momentum to the investment drive, with discussions having covered potential projects and business opportunities.

The challenge is to convert expressions of interest into actual investment. Bangladesh must compete with established manufacturing destinations by offering reliable infrastructure, predictable policies, efficient logistics and a business environment that gives investors confidence over the long term.

Trade relations provide a strong foundation. Bangladesh's exports to Japan have increased substantially over the past decade, driven largely by demand for competitively priced garments.

Annual exports have exceeded $1.0 billion since the financial year 2015-16, while bilateral trade surpassed $3.0 billion in 2017-18.

According to Export Promotion Bureau data, exports to Japan reached $1.9 billion in 2022-23 before fluctuating in subsequent years. Two-way trade rose to more than $3.31 billion in 2024-25, up from $3.12 billion the previous year.

Japan is now Bangladesh's ninth-largest export destination worldwide and its second-largest in Asia.

Duty-free access has helped Bangladeshi manufacturers compete in Japan. Tokyo has also committed to extending relevant preferential access for three years after Bangladesh graduates from least-developed-country status, giving exporters a limited period to prepare for changing trade conditions.

The implementation of the Japan-Bangladesh Economic Partnership Agreement, signed in Tokyo on 6 February 2026, is, therefore, expected to be a central issue during the visit. The agreement, Bangladesh's first of its kind, is intended to improve market access and create a more predictable framework for trade and investment.

Yet Japan's ambitions extend beyond bilateral commerce.

Tokyo sees Matarbari, on Bangladesh's southeastern coast, as a potential anchor for what it calls 'Big-B' initiative - a regional economic vision intended to connect industrial centres in northeastern India with the Bay of Bengal and south-east Asian markets through improved transport and supply chains.

Japan has been financing the development of the Matarbari deep-sea port, which is expected to expand Bangladesh's capacity to handle larger vessels and reduce its dependence on regional transshipment hubs such as Singapore and Colombo.

Diplomatic sources say the port could help transform Bangladesh into a regional industrial centre, provided it is supported by roads, railways, energy infrastructure and industrial facilities. The Maheshkhali-Matarbari Integrated Infrastructure Development Initiative is expected to feature in discussions during the visit.

Japan hopes the wider corridor could connect Bangladesh with India's seven northeastern states and neighbouring countries, including Nepal and Bhutan, while improving access to south-east Asian markets. A similar approach to industrial connectivity has been pursued in parts of south-east Asia.

The vision, however, faces political and practical obstacles. The Maitri Bridge over the Feni river, linking Bangladesh with India's Tripura state, has remained non-operational amid tensions in bilateral relations. Such difficulties underline the importance of regional cooperation in turning infrastructure into functioning trade corridors.

Tarique Rahman is also expected to seek better financial terms for major Japanese-supported infrastructure projects, including Dhaka's metro-rail system. Lower borrowing costs and interest rates, faster implementation and timely completion of projects will be among the priorities in talks with Japanese officials.

The prime minister will hold a summit meeting with his Japanese counterpart, Sanae Takaichi, on Tuesday, followed by a joint press conference and luncheon. The two leaders are expected to discuss trade, investment, infrastructure, development cooperation and regional and international issues.

The itinerary also includes meetings with Japanese business leaders and representatives of the Japan International Cooperation Agency, the Japan Bank for International Cooperation and the Japan External Trade Organization. Visits to energy facilities, logistics operations and Toyota's manufacturing complex will offer opportunities to explore investment and technology partnerships.

At Bangladesh-Japan Economic Forum in Tokyo, Tarique Rahman is expected to encourage Japanese companies to establish factories in Bangladesh, expand production and support skills development.

Officials are also discussing memorandums of understanding covering agriculture, fisheries, aviation, education, renewable energy, environmental protection, science and technology, and human-resource development. Several agreements may be signed.

Japan has been one of Bangladesh's principal development partners since independence, supporting major projects.

The visit will test whether that longstanding partnership can evolve into a more investment-driven relationship. For Bangladesh, the prize is not simply more Japanese capital but the chance to build stronger industrial capacity, diversify exports and create better-paid jobs.

For Japan, Matarbari offers a potential gateway to a wider regional production network.

Whether the two sides can turn their overlapping ambitions into tangible results will depend on investment commitments, effective implementation and the ability to overcome the logistical and political barriers that have long constrained regional connectivity.

CVO Petrochemical Refinery PLC's share price fell 6.22% to close at Tk150.90 on the Dhaka Stock Exchange today (25 October), despite reporting higher earnings and recommending a 15% cash dividend for the financial year ended 30 June 2026.

The company's board recommended the dividend following a strong improvement in earnings per share (EPS), according to its financial disclosures filed with the bourse.

EPS rose 41% to Tk4.93 in FY26, up from Tk3.50 in the previous fiscal year. Net asset value per share increased to Tk31.75 from Tk27.79, while net operating cash flow per share declined to Tk4.52 from Tk7.01.

CVO Petrochemical has scheduled its annual general meeting for 14 December to seek shareholders' approval for the dividend. The record date for determining eligible shareholders has been set for 17 November.

The company, listed on the stock market in 1990, trades in the 'A' category. It originally refined vegetable oil but shifted to petrochemical refining amid stiff competition from imported oil.

CVO Petrochemical suspended production for 14 months until September 2022 due to raw material quality issues. Operations resumed after the government allowed domestic refineries to source imported condensate.

The company later became the first domestic refinery to sign an agreement with the Bangladesh Petroleum Corporation to source naphtha from Eastern Refinery for producing solvents at its Chattogram plant.

Sponsor directors held 43.06% of the company's shares as of September 2026, while institutional investors held 17.40%, foreign investors 0.09%, and general shareholders 39.45%.

বিশ্বজুড়ে গত সেপ্টেম্বরে অপরিশোধিত ইস্পাতের উৎপাদন সামান্য কমেছে। ওয়ার্ল্ড স্টিল অ্যাসোসিয়েশনের (ওয়ার্ল্ডস্টিল) সম্প্রতি প্রকাশিত তথ্যানুযায়ী, গত সেপ্টেম্বরে ৭০টি দেশে উৎপাদন হয়েছে মোট ১৪ কোটি ২৪ লাখ টন অপরিশোধিত ইস্পাত। গত বছরের একই সময়ের তুলনায় উৎপাদন কমেছে দশমিক ২ শতাংশ। এ সময় চীন, ভারত ও যুক্তরাষ্ট্রের মতো বড় উৎপাদক দেশগুলোয় উৎপাদন বাড়লেও ইউরোপীয় ইউনিয়ন (ইইউ) ও মধ্যপ্রাচ্যে উৎপাদন কমেছে।

হেলেনিক শিপিং নিউজে প্রকাশিত প্রতিবেদনে বলা হয়েছে, ওয়ার্ল্ডস্টিলের হিসাবে, ২০২৫ সালে বিশ্বের মোট অপরিশোধিত ইস্পাত উৎপাদনের প্রায় ৯৮ শতাংশ এসেছিল এ ৭০টি দেশ থেকে। ফলে এসব দেশের উৎপাদনের চিত্র থেকে বিশ্ব ইস্পাত শিল্পের সামগ্রিক পরিস্থিতি সম্পর্কে ধারণা পাওয়া যায়।

অঞ্চলভিত্তিক হিসেবে, এশিয়া ও ওশেনিয়া ছিল ইস্পাত উৎপাদনে শীর্ষে। গত সেপ্টেম্বরে এ অঞ্চলে উৎপাদন হয়েছে ১০ কোটি ৪০ লাখ টন, যা আগের বছরের একই সময়ের তুলনায় দশমিক ৭ শতাংশ বেশি।

বিশ্বের বৃহত্তম ইস্পাত উৎপাদক চীনে সেপ্টেম্বরে উৎপাদন হয়েছে ৭ কোটি ৩৬ লাখ টন। গত বছরের একই সময়ের তুলনায় উৎপাদন বেড়েছে দশমিক ১ শতাংশ। দ্বিতীয় বৃহত্তম উৎপাদক ভারতে উৎপাদন ১ দশমিক ৯ শতাংশ বেড়ে দাঁড়িয়েছে ১ কোটি ৩৯ লাখ টনে।

যুক্তরাষ্ট্রেও উৎপাদন বেড়েছে। সেপ্টেম্বরে দেশটিতে অপরিশোধিত ইস্পাত উৎপাদন আনুমানিক ৭২ লাখ টনে পৌঁছেছে, যা আগের বছরের একই সময়ের তুলনায় ৪ দশমিক ৩ শতাংশ বেশি। রাশিয়ায় উৎপাদন ৬ দশমিক ২ শতাংশ বেড়ে ৫৫ লাখ টন হয়েছে। দক্ষিণ কোরিয়ায় উৎপাদন ৩ দশমিক ৬ শতাংশ বেড়ে ৫২ লাখ টনে দাঁড়িয়েছে। তুরস্কে উৎপাদন বেড়েছে দশমিক ৮ শতাংশ, মোট ৩২ লাখ টন।

তবে কয়েকটি বড় উৎপাদক দেশে উৎপাদন কমেছে। জাপানে সেপ্টেম্বরে উৎপাদন দশমিক ৬ শতাংশ কমে ৬৩ লাখ টনে দাঁড়িয়েছে। ব্রাজিলে উৎপাদন দশমিক ৮ শতাংশ কমে হয়েছে ২৮ লাখ টন। জার্মানিতে উৎপাদন ১৩ শতাংশ কমে নেমে এসেছে ২৬ লাখ টনে।

অন্যদিকে ভিয়েতনামে উৎপাদন উল্লেখযোগ্য হারে বেড়েছে। দেশটিতে সেপ্টেম্বরে ২৬ লাখ টন অপরিশোধিত ইস্পাত উৎপাদন হয়েছে, যা গত বছরের একই সময়ের তুলনায় ২৯ দশমিক ১ শতাংশ বেশি।

অঞ্চলভিত্তিক হিসেবে, আফ্রিকায় উৎপাদন ১০ দশমিক ৬ শতাংশ বেড়ে ২২ লাখ টন হয়েছে। উত্তর আমেরিকায় উৎপাদন ৩ দশমিক ৪ শতাংশ বেড়ে ৯৩ লাখ টনে দাঁড়িয়েছে। দক্ষিণ আমেরিকায় উৎপাদন সামান্য বেড়ে ৩৫ লাখ টন হয়েছে।

অন্যদিকে ইইউর ২৭টি দেশে উৎপাদন ৫ শতাংশ কমে ১ কোটি ১০ লাখ টনের কাছাকাছি নেমেছে। মধ্যপ্রাচ্যে পরিস্থিতি আরো খারাপ ছিল। এ অঞ্চলে উৎপাদন ২০ দশমিক ৪ শতাংশ কমে ৩৬ লাখ টনে দাঁড়িয়েছে। রাশিয়া, অন্যান্য স্বাধীন রাষ্ট্রের কমনওয়েলথভুক্ত দেশ ও ইউক্রেনে সম্মিলিত উৎপাদন কমেছে ১ দশমিক ৯ শতাংশ।

সব মিলিয়ে এশিয়ার প্রধান উৎপাদক দেশগুলোয় উৎপাদন বাড়লেও ইউরোপ ও মধ্যপ্রাচ্যের দুর্বল পরিস্থিতির কারণে সেপ্টেম্বরে বিশ্বে ইস্পাত উৎপাদন সামান্য কমেছে। বৈশ্বিক বাজার পরিস্থিতি বদলে যাওয়ার সঙ্গে সঙ্গে বাজার বিশ্লেষকরা এ আঞ্চলিক ওঠানামা গভীরভাবে পর্যবেক্ষণ করছেন।

Bangladesh’s Annual Development Programme (ADP) implementation rate stood at 3.89 per cent in the first three months of the current fiscal year (FY2026-27), with expenditure reaching Tk 120.17 billion (Tk 12,017.54 crore), according to the Implementation Monitoring and Evaluation Division (IMED).Bangladesh Economic Report

The rate was lower than the 5.09 per cent recorded in the same period of FY2025-26, when expenditure amounted to Tk 12,158.27 crore, the IMED data showed.

The government allocated Tk 3,08,924.86 crore for the ADP in FY2026-27, compared with Tk 2,38,696 crore in the previous fiscal year.

The ADP implementation rate was 4.75 per cent in the first three months of FY2024-25, when expenditure stood at Tk 13,215.30 crore. In FY2023-24, the rate was 7.50 per cent, with spending of Tk 20,609.55 crore during the corresponding period.

In FY2022-23, the implementation rate was 8.55 per cent, with expenditure reaching Tk 21,895.56 crore in the first quarter.

In September alone, the government spent Tk 6,307.84 crore on development projects in FY2026-27, representing 2.04 per cent of the annual allocation.

In September of FY2025-26, expenditure was Tk 6,443.44 crore, equivalent to 2.70 per cent of that year’s allocation.

The latest figures indicate that monthly development spending in September was lower than a year earlier, both in absolute terms and as a proportion of the annual ADP allocation.

The IMED, under the Planning Ministry, monitors the implementation of development projects and reports progress on a monthly basis.

Implementation of the Annual Development Programme (ADP) has fallen to its lowest level on record for the first quarter of a fiscal year, raising concerns about the pace of public investment and its wider economic consequences.

Government spending on roads, bridges, power infrastructure, schools, and hospitals drives demand for construction materials, transport, labour, and other services, supporting economic activity, particularly in rural areas, and generating tax revenue.

When projects stall, businesses and jobs suffer. The impact is greater when private investment is already subdued, leaving the economy with fewer growth drivers.

According to data released by the Implementation Monitoring and Evaluation Division (IMED) today (25 October), ministries and divisions spent just 3.89% of the annual development budget in July-September,. The rate was 5.09% in the same period of FY26 and 4.75% in FY25, compared with 7.50% in FY24, and 8.55% in FY23.

The slow start this year comes as the government reviews previously approved projects to assess whether they align with its priorities. Economists warn that prolonged delays could constrain growth, employment, and the delivery of essential public services.

The government allocated Tk3.09 lakh crore for the ADP this fiscal year, including agencies' own resources. Expenditure in the first three months stood at around Tk12,018 crore.

The first quarter is typically spent preparing work plans, completing administrative procedures, and arranging project implementation. Planning Commission and IMED officials said spending generally accelerates as the fiscal year progresses.

Planning officials said the government has instructed ministries and divisions to speed up implementation. Economists, however, say faster decisions on project reviews and closer monitoring are needed to address the slowdown.

Slow development spending threatens growth, public services

Sayema Haque Bidisha, economics professor at Dhaka University, said human resource development is hampered when the implementation of development projects in important sectors such as education and health slows down.

Public investment also has wider macroeconomic implications through job creation, economic growth and the generation of business activity, she said.

Bidisha called for stricter monitoring and evaluation of public expenditure, alongside the existing oversight conducted by the IMED. "If a project fails to make the expected progress after three months, the reasons should be identified immediately and steps taken," she said.

Low spending could also affect revenue

Bidisha said lower development expenditure could have some adverse effects on government revenue collection because reduced project procurement and related economic activity would affect transactions that generate revenue.

However, she cautioned against treating ADP expenditure as the principal driver of revenue growth. The more important source of sustainable revenue growth is the private sector.

Project reviews slowing implementation

Enamul Haque, director general of the Bangladesh Institute of Development Studies (BIDS), said many projects had received approval before the new government took office, particularly before March, and are now being examined to determine whether they align with the government's current objectives.

"This process of scrutiny is taking time. My understanding is that this is primarily why ADP implementation is now progressing so slowly," he said.

Enamul said the reviews are necessary but should be completed as quickly as possible to prevent further delays. He also said the situation is worse than in the previous fiscal year. By the end of FY26, the government implemented 67.52% of its revised development budget.

"Public investment plays an important role in circulating money through the economy," he said. "Unless implementation improves, the economy will not gain the necessary momentum, and the expected contribution of public investment will not be realised."

Foreign-funded projects lag behind

The first-quarter slowdown affected both domestically and foreign-funded development expenditure, with a sharper decline in the use of external financing.

Of the Tk1.90 lakh crore allocated from government funds, ministries and divisions spent Tk8,058 crore, or 4.28%, in July-September, up from Tk6,307 crore, or 4.38% of the allocation, in the same period last fiscal year.

The government allocated Tk1.10 lakh crore in foreign loans and grants for the current ADP. Spending from these sources fell to Tk3,442 crore, or 3.13% of the allocation, from Tk5,074 crore, or 5.90%, a year earlier.

Expenditure from agencies' own funds stood at Tk518 crore, or 5.80% of the Tk8,925 crore allocated for the year.

Major ministries struggle to spend development funds

Implementation was also slow among the 15 ministries and divisions receiving the largest ADP allocations. Together, they account for 52.50% of the development budget but had spent just 6.62% of their allocations by the end of September, according to IMED data.

The Local Government Division, the largest recipient with Tk33,374 crore, spent Tk4,111.76 crore during the quarter. The Road Transport and Highways Division, allocated Tk29,841.37 crore, spent only Tk1,220 crore, or around 4%. The Power Division, with the third-largest allocation of Tk18,106 crore, spent Tk1,260.97 crore, or 6.96%.

Spending was higher in education, with the Ministry of Primary and Mass Education using around 17% of its allocation and the Secondary and Higher Education Division 13%.

Several critical sectors recorded expenditure of around 2% or less. The Science and Technology Ministry spent 2.27%, the Ministry of Shipping 2.05%, the Health Services Division 1.78%, the Medical Education and Family Welfare Division 1.86%, and the Ministry of Railways 2.06%.

Chattogram Customs House seized 467 import consignments and filed 270 cases over suspected false declarations in the first quarter of FY27, recovering Tk58.2 crore in revenue and fines as authorities stepped up scrutiny at the country's prime seaport.

The number of consignments locked by the Audit, Investigation and Research (AIR) wing rose 29.4% year-on-year from 361 in the same period of FY26, while revenue and fines collected surged 83.6% from Tk31.7 crore, according to customs data.

Two cases detected in September highlight how importers allegedly attempted to evade duties by misdeclaring goods and quantities.

In one case, Cowboy Foods Company Ltd imported a consignment from China declared as generator sets and accessories. A physical examination found 13,335kg of undeclared goods, including solar streetlights, inverters, portable power stations, food additives, tea sets, and lithium-ion battery modules.

The consignment had an assessable value of Tk1.33 crore, with the potential revenue loss estimated at Tk43.43 lakh. Customs imposed a Tk50 lakh fine and a Tk5 lakh redemption fine, allowing the goods to be released subject to payment of applicable duties and taxes and compliance with import regulations.

In another case, Rangpur Metal Industries Ltd declared 264,203kg of seamless pipes imported from China. An inspection uncovered an additional 72,500kg, or 27.4% more than the declared quantity.

Customs estimated the revenue loss or exposure at Tk1.14 crore and imposed a Tk1.2 crore fine and a Tk15 lakh redemption fine.

The two cases involved estimated revenue losses or exposure of around Tk1.57 crore, excluding the fines and redemption charges.

Kazi Mahmud Imam, former secretary of the Chattogram Customs Agents Association, described the increase in enforcement as unprecedented.

"In my 40-year career in customs, I have never seen such a high number of cases involving false declarations," he told TBS.

He credited the National Board of Revenue for appointing competent officials to key positions, saying continued enforcement could discourage misdeclaration and boost revenue collection.

Revenue recovery rises sharply

AIR data show that enforcement has intensified over the past three years.

In the first quarter of FY25, customs locked 167 consignments, filed 228 cases, and collected Tk27.44 crore in revenue and fines. In the corresponding period of FY26, 361 consignments were locked, 199 cases were filed, and collections reached Tk31.7 crore.

In Q1 FY27, the number of locked consignments rose to 467, while cases increased to 270, and collections climbed to Tk58.2 crore.

For the full FY26, the AIR wing locked 1,451 consignments and filed 843 cases. It collected Tk52.08 crore in revenue and Tk59.63 crore in fines, bringing the combined amount to Tk111.72 crore.

The figures indicate increased detection and enforcement, though they do not establish the overall prevalence of false declarations among imports.

Businesses call for targeted enforcement

Business leaders have urged customs authorities to take stronger action against importers deliberately misdeclaring goods, while cautioning against excessive scrutiny that could disrupt legitimate trade.

Former BGMEA vice-president Nasir Uddin Chowdhury said organised networks were sometimes involved in misdeclaration, using the names of established businesses and damaging their reputations when irregularities were detected.

He called for stronger surveillance and exemplary punishment rather than relying solely on fines. Excessive checks on all importers, he warned, could delay cargo clearance, disrupt export shipments and penalise compliant businesses.

Misdeclaration can involve incorrect tariff classifications, understated quantities or values, and concealing goods under descriptions that attract lower duties.

Customs has flagged suspected irregularities involving machinery and luxury vehicles declared as scrap, cosmetics declared as modelling clay, mobile phones concealed under other descriptions, and fabric imported under incorrect declarations.

Customs steps up monitoring

Chattogram Customs Assistant Commissioner and spokesperson Sharif Al Amin told this newspaper that the department was strengthening surveillance and coordination with other agencies through digital systems, with plans to integrate services under the National Single Window.

He said customs officials had become more alert following recent incidents and would intensify monitoring to ensure compliance with existing laws and procedures.

Sustaining the drive will require effective, risk-based inspections and consistent action against offenders without unnecessarily delaying legitimate cargo, officials and business representatives said.

Dhaka stocks opened the week lower today (25 October) as persistent selling pressure dragged down the benchmark index, despite modest gains in banking stocks amid bargain hunting.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell 18 points to close at 5,432, while the blue-chip DS30 index declined 1.66 points to 2,101.

Market breadth remained negative, with 283 issues declining, 64 advancing and 38 remaining unchanged.

Turnover, a key indicator of trading activity, dropped 14% to Tk430 crore compared with the previous session. The market capitalisation also declined by around Tk2,700 crore.

According to EBL Securities' daily market review, the market resumed trading on a lacklustre note after the Durga Puja holidays, as concerns over corporate earnings and dividend declarations weighed on investor sentiment. Rising global energy prices amid renewed conflict in the Middle East further dampened market confidence.

According to EBL Securities' daily market review, the market resumed trading on a lacklustre note after the Durga Puja holidays, as concerns over corporate earnings and dividend declarations weighed on investor sentiment. Rising global energy prices amid renewed escalation of conflicts in the Middle East further dampened confidence.

The brokerage said investors largely remained on the sidelines amid a lack of fresh positive catalysts, keeping the market under sustained selling pressure throughout the session.

Sheltech Brokerage Limited said the market initially witnessed strong buying interest, pushing the benchmark index to an intraday high of 5,477 points. However, selling pressure emerged shortly afterwards and intensified towards the close, dragging the index to an intraday low of 5,432 points.

The brokerage attributed the downturn to uncertainty surrounding the earnings and dividend announcement season, alongside heightened geopolitical tensions in the Middle East and Europe.

Despite the broader market weakness, the banking sector emerged as the day's standout performer, posting a 1% gain. Bargain hunting in banking shares helped the sector outperform most others, although late-session selling continued to weigh on the broader market, according to the EBL Securities.

Banking stocks also dominated trading activity, accounting for 23.1% of total turnover. Textile stocks followed with 15.4%, while pharmaceutical shares contributed 12%.

Most sectors ended in negative territory. Jute stocks recorded the steepest sectoral decline, falling 3.7%, followed by cement at 3.6% and ceramics at 2.5%. Services and telecommunications posted marginal gains of 0.2% and 0.1%, respectively.

BRAC Bank, City Bank, Matin Spinning, Prime Bank and Asiatic Laboratories were among the most actively traded stocks.

Bangladesh National Insurance led the gainers, rising 9.28%, followed by CAPM IBBL Mutual Fund, up 8.66%, and Prime Finance, which gained 8%. Libra Infusion and Peoples Leasing advanced 7.48% and 6.25%, respectively.

On the losing side, Aramit Cement fell 9.09%, while Desh Garments dropped 8.93%. BBS declined 7.76%, followed by Usmania Glass, down 6.49%, and Shepherd Industries, which lost 6.48%.

The bearish trend also extended to the Chittagong Stock Exchange, where the CSCX index fell 11 points to 8,963 and the CASPI index declined 22 points to close at 14,581.

Palli Sanchay Bank has deposited Tk60 crore in dividends into the government treasury, handing over a cheque to Finance Minister Amir Khosru Mahmud Chowdhury at the Secretariat in Dhaka today (25 October).

The cheque covered dividends declared in favour of the government up to the 2023-24 fiscal year, according to a press release from the Ministry of Finance.

Palli Sanchay Bank Chairman Dr AKM Jahangir and Managing Director Salma Banu formally handed over the cheque to the finance minister at his office.

Financial Institutions Division Secretary Nazma Mubarek was present at the handover ceremony, along with bank director Nure Alam Talukder.

Other attendees included Deputy Managing Director Md Golam Mortuza, General Managers ABM Zahid Hossain and Md Ala Uddin, Board Secretary and Senior Principal Officer Muhammad Ali, and Senior Principal Officer Sukanta Kumar Ghosh.

Palli Sanchay Bank works to improve living standards and socioeconomic conditions in remote areas, reduce poverty and create employment, the ministry said.

After contracting by 30.26 percent in FY26, Pakistan’s pharmaceutical exports continued to decline, falling 25.53 percent in value in the first quarter of 2026-27.

The industry largely attributes the drop to disrupted trade with Afghanistan, once one of the country’s main medicine markets.
Pakistan Bureau of Statistics data showed that pharmaceutical exports fell to $319.012 million in FY26 from $457.456 million in FY25, a drop of $138.444 million, while export volumes declined 26.14 percent to 83,104 tonnes from 112,517 tonnes.

Pharmaceutical exports remained under pressure in the first quarter of FY27, with proceeds falling 25.53 percent to $73.301 million from $98.428 million in the same period last year.

Export volumes fell 31.40 percent in the first quarter of FY27, dropping from 23,924 tonnes to 16,410 tonnes, a reduction of 7,514 tonnes, showing a sharper decline in quantity than in value in both periods; average export value per tonne rose about 8.6 percent in the first quarter, from around $4,115 to $4,469, but fell 5.6pc in FY26, from roughly $4,065 to $3,838, with these averages reflecting changes in the mix of products exported rather than necessarily changes in medicine prices.

Exports of surgical goods and medical instruments, which are not included in these figures, rose 8.8 percent to $121 million in the first quarter of FY27 and remained unchanged at $451.527 million for FY26.

Afghanistan was once a major market for Pakistani medicines. Data on TDAP’s Pakistan Pharma Portal, sourced from PRAL, showed that Pakistan exported $155.68 million worth of medicines to Afgh­anistan in FY25, accounting for about 34.1percent of the country’s total pharmaceutical exports of $457.456 million that year.

Former Pakistan Pharmaceutical Manufacturers Association (PPMA) Chairman Tauqeer ul Haq said the suspension of trade with Afghanistan had caused heavy losses for pharmaceutical companies and the national exchequer.

He added that Afghan patients were also suffering as they had to turn to more expensive medicines.

He said the PPMA had raised the issue with the government, and Planning Minister Ahsan Iqbal had promised to discuss it with the relevant authorities and look for ways to restart Pakistani medicine exports. However, he said there had been little serious follow-up.

The United States’ decision to apply a zero additional tariff rate to specified specialty pharmaceutical products and associated ingredients from Bangladesh presents a significant opportunity. The US Department of Commerce’s September 23 notice lists Bangladesh among the jurisdictions eligible for the zero Section 232 tariff rate on specified products, including orphan medicines, nuclear medicines, plasma-derived therapies, fertility drugs, cell and gene therapies, antibody-drug conjugates, certain medical countermeasures and animal health products.

This development should be viewed not simply as a tariff issue, but as an opportunity to strengthen Bangladesh’s ability to serve a demanding global healthcare market. The exemption is product-specific and subject to US rules. Nevertheless, it reinforces the importance of developing a supply chain capable of protecting pharmaceutical quality from the factory to the final destination.
Pharmaceutical logistics is fundamentally different from ordinary cargo movement. Some products can tolerate delays; many medicines, vaccines, biological materials and other temperature-sensitive products cannot. Their quality may depend on maintaining specified conditions throughout transportation, storage, handling and delivery. A shipment can leave a modern manufacturing plant in perfect condition and still be compromised by a temperature excursion, excessive exposure on the airport apron, inadequate storage or a poorly controlled handover. This is why Bangladesh needs to treat pharmaceutical logistics as a high-integrity supply chain, not merely an airport cargo function. The International Air Transport Association’s (IATA) pharmaceutical logistics standards emphasise temperature control, appropriate equipment and facilities, trained personnel, documentation, traceability, risk management and coordinated handling across the supply chain. Its CEIV Pharma programme provides a recognised framework covering infrastructure, equipment, quality management, training, warehousing, ground transportation and aircraft handling.

For Bangladesh, an immediate priority should be developing dedicated pharmaceutical logistics capabilities at the country’s principal air cargo gateway. This should include validated temperature-controlled storage for different product requirements, rapid transfer between aircraft and storage, reliable backup power, temperature mapping and continuous monitoring, secure handling areas, calibrated sensors and clear procedures for temperature excursions.

The system should also support active and passive temperature-controlled packaging, data loggers, appropriate unit load device handling and specialised vehicles so cargo is not unnecessarily exposed to ambient conditions. Dedicated fast-track procedures for customs clearance would further reduce dwell time. High-value and sensitive medicines require strong physical security, controlled access, accurate documentation and end-to-end shipment visibility.

Training is equally important. Airlines, ground handlers, freight forwarders, customs personnel, warehouse operators and trucking companies should understand pharmaceutical handling procedures. Standard operating procedures and service-level agreements should define responsibilities at every handover. Digital tracking and electronic documentation can further strengthen traceability and reduce avoidable delays. IATA specifically identifies infrastructure, temperature monitoring, trained personnel, documentation, transportation and ground handling as important elements of pharmaceutical logistics. Singapore offers a useful benchmark. Its pharmaceutical and biomedical industries are supported by advanced manufacturing, global connectivity, regulatory capability and specialised logistics services. Bangladesh does not need to replicate Singapore, but it can learn from the principle that high-value healthcare manufacturing requires equally high-integrity logistics.

The US tariff development therefore presents Bangladesh with more than a market-access opportunity. It is a reminder that competitive pharmaceutical exports depend on the entire supply chain. Investment in cold-chain infrastructure, trained personnel, secure cargo facilities, reliable power, digital monitoring and internationally aligned operating standards can help Bangladesh protect product integrity and build confidence among global buyers.

For a country seeking to expand pharmaceutical exports, the next competitive advantage may not come only from what is manufactured inside the factory. It will also depend on how safely, quickly and reliably that product reaches the patient.

The writer is former president of FICCI and AmCham Bangladesh

Square Textiles PLC's net profit fell to Tk89 crore in the financial year ended 30 June 2026, its lowest in five years, amid broader challenges in the textile sector.

According to the company's price-sensitive information approved at a board meeting held today (25 October), consolidated earnings per share (EPS) declined by nearly 38% to Tk4.50 in FY26 from Tk7.24 in the previous fiscal year. On a standalone basis, EPS dropped to Tk4.24 from Tk6.45 in FY25.

The company's consolidated net profit fell below Tk100 crore for the first time since FY22.

Despite the bottom-line contraction, the board recommended a 32% cash dividend for its shareholders for the year. To seek approval for the proposed payout, the company has scheduled its annual general meeting (AGM) for 15 December. The record date for determining eligible shareholders has been set for 16 November.

The financial reports also showed that consolidated net asset value (NAV) per share rose slightly to Tk57.16 as of June 30, 2026, from Tk55.86 a year earlier.

Meanwhile, consolidated net operating cash flow per share (NOCFPS) strengthened significantly to Tk8.71, up from Tk5.25 in FY25.

Looking ahead, the board approved an allocation of Tk60 crore for Balancing, Modernisation, Rehabilitation, and Expansion (BMRE), capital machineries, and land acquisitions to drive future business growth.

Its share price closed 1.84% lower at Tk48 yesterday at the Dhaka Stock Exchange.

Bangladesh Bank has introduced a new facility allowing hotels, resorts, restaurants, shopping malls, retail outlets and other business establishments to retain a portion of their foreign currency receipts from sales to foreign visitors.

The facility applies to payments made through internationally issued cards and other admissible payment instruments.

Under a circular issued today (25 October), Authorised Dealer (AD) banks may allow eligible merchants to retain up to 15% of foreign currency receipts realised through acquiring services in foreign currency (FC) accounts maintained in their names.

The remaining 85% must be converted into Taka. The initiative aims to encourage sales of goods and services to foreign visitors by facilitating international payments while giving businesses access to foreign currency to meet legitimate foreign exchange requirements.

According to the circular, the retained foreign currency may be used to settle legitimate foreign exchange obligations arising from current account transactions, including payments through international cards, in line with applicable foreign exchange regulations.

Authorised Dealer banks must also ensure that the concerned merchants have appropriate arrangements to accept payments through internationally issued cards and other admissible payment instruments.

Industry insiders expect the facility to support businesses serving foreign visitors by facilitating the settlement of eligible foreign currency expenses through the banking channel.

It is also expected to help tourism-related businesses and other merchants benefit from international payment systems while ensuring that most of their foreign currency earnings are converted into Taka.

British consumer confidence has suffered its sharpest month-on-month fall since early in the Covid-19 pandemic as economic worries deepen, according ​to a survey that created an unwelcome backdrop for finance ‌minister John Healey’s budget next week.

GfK’s consumer confidence index dropped 11 points to -24 in October, its lowest since April and below all the forecasts from economists a ​Reuters poll. September’s reading of -13 was the highest since August 2024.

The ​drop was biggest from one month to the next since April 2020, just after Britain entered its first coronavirus lockdown. Excluding ​the pandemic, the last drop on this scale followed the June 2016 ​Brexit vote.

GfK said no single factor explained the slump and pointed instead to rising inflation, the conflict in the Middle East and the broader squeeze on household budgets.

Healey ​has said he wants to give households and businesses “breathing space” in ​his budget. He has struck an upbeat tone on the economy, pointing to growth ‌in the first half of the year that was jointly the fastest in the Group of Seven. But surveys this month from S&P Global and LSEG/Ipsos have also shown weaker consumer sentiment, undoing a recovery that took hold ​around the time Andy ​Burnham became prime minister.

“The speed of this deterioration is alarming,” said Neil Bellamy, consumer insights director at GfK.

Households’ views of ​the wider economy and their appetite for big-ticket purchases ​deteriorated sharply with the major purchase index falling to its lowest in more than two years.

Consumers’ inflation expectations rose to their highest since April when they reached ⁠an ​almost 3-1/2-year peak. That is likely to ​concern the Bank of England, which is expected to raise interest rates next month.

GfK’s survey of ​2,003 adults was conducted October 1-14.

The Iran war that began eight months ago severely disrupted Bangladesh's energy sourcing. Now, the conflict between the Houthis in Yemen and Saudi Arabia has disrupted its manpower supply, posing a potential threat to inward remittances, a major source of the country's foreign currency reserves.

The mounting crisis in the Middle East has also exposed a major vulnerability in Bangladesh's economy: its heavy reliance on the Saudi Arabian labour market. Now, the kingdom's sharp decline in recruitment is sending shockwaves through Bangladesh's overseas employment sector.

The country sent 5,90,188 workers abroad between 1 January and 17 October this year, down 31.8% from 8,64,735 during the same period in 2025, according to data from the Bureau of Manpower, Employment and Training (BMET).

The downturn is largely attributable to Saudi Arabia, by far the biggest destination for Bangladeshi migrant workers. A total of 3,15,935 Bangladeshis migrated to the kingdom during the period, down 45.2% from 5,77,010 a year earlier.

The decline of 2,61,075 workers in Saudi Arabia alone accounts for around 95% of the net fall of 2,74,547 in Bangladesh's overseas employment year-on-year.

Analysts suggest that some recent remittances may have come from expatriates hastily sending home their savings out of fear and uncertainty, rather than from stable, ongoing earnings.

Mohammad Jalal Uddin Sikder, an associate professor at North South University, cautioned: "War can push expatriates to send home their savings amid uncertainty, temporarily increasing remittances. But if the conflict continues unresolved, inflows could decline after the first few months."

Khondaker Golam Moazzem, president of Knowledge Hub Institute Trust, warned that a prolonged conflict could severely affect both employment and wages as economic activities and investment projects stall across parts of the Middle East.

He said reduced capital spending in key destinations such as Saudi Arabia and the UAE directly threatens demand for new labour and increases the risk of layoffs among those already employed.

State Minister for Foreign Affairs Shama Obaed Islam also acknowledged the immense stakes involved, saying that more than three million Bangladeshis currently live and work in Saudi Arabia.

"An effect is inevitable in a place where more than three million Bangladeshis work," she told reporters, adding that the government is looking to explore alternative markets to ease long-term pressures.

Rising flight disruptions pose a new concern

Ongoing regional conflicts, including the conflict involving Iran that began in February and recent security-related disruptions at Saudi airports, particularly Riyadh Airport, due to Houthi attacks, have led to the cancellation of more than 1,000 flights since February.

Following the Iran war, recruitment also declined in other major destinations. Bangladesh sent 52,060 workers to Qatar during the January to 17 October period, down from 86,171 a year earlier, while the number going to Kuwait fell to 25,035 from 34,928.

Some markets bucked the trend. Singapore received 62,647 Bangladeshi workers, up from 56,591, while deployments to the United Arab Emirates increased to 22,848 from 10,142.

Monthly overseas employment clearances have remained between 44,000 and 70,000 since February, according to BMET data. This is well below the post-pandemic average of around 100,000 workers a month and represents a return to pre-Covid migration levels.

Most recently, restrictions on Saudi airport operations disrupted 141 direct and transit flights from Dhaka in the week between October 10 and October 23, stranding 21,933 passengers, according to the flight management department of Hazrat Shahjalal International Airport.

These prospective migrants now face severe uncertainty after investing substantial sums to secure jobs and visas for the region.

However, State Minister for Expatriates' Welfare and Overseas Employment Nurul Haque said the government is actively engaged in bilateral discussions to secure visa extensions for stranded workers.

Remittance flows at a crossroads

Despite the sharp contraction in fresh recruitment, remittance inflows have so far shown a complex resilience, although experts warn that it may be short-lived.

Bangladesh received $8.59 billion in remittances during the first quarter of the current fiscal year (July-September), up 13.3% from $7.59 billion a year earlier.

Saudi Arabia remains a major source of these inflows. Between July and September, the kingdom accounted for 19.2% of total remittances, sending $1.65 billion, about 34% higher than the $1.23 billion received from the kingdom during the same period a year earlier.

However, warning signs are already emerging. Bangladesh received $2.77 billion in September, the lowest monthly inflow in 11 months, down from $2.97 billion in August, according to recent Bangladesh Bank data.