Stocks on the Dhaka Stock Exchange (DSE) continued their decline for a second straight session today (18 October) amid persistent selling pressure, cautious investor sentiment, and ongoing corporate earnings and dividend disclosures.

The benchmark DSEX index fell 10 points to 5,422, while the blue-chip DS30 index shed 4 points to 2,085.

Turnover stood at Tk365 crore amid subdued trading. Of the issues traded, 217 declined, 102 advanced and 67 remained unchanged.

EBL Securities said in its daily market review that investors largely stayed on the sidelines amid ongoing earnings and dividend announcements, with uncertainty over the market's near-term direction weighing on confidence. Profit-booking following recent bargain hunting triggered early selling, while intermittent buying support failed to reverse the trend.

A DSE official, speaking on condition of anonymity, attributed the low turnover partly to technical arrangements to test the exchange's disaster recovery server. Weak network connectivity also dampened trading activity, although the official said brokers had been notified in advance.

Textiles accounted for the largest share of turnover at 23%, followed by General Insurance at 14.4% and Pharmaceuticals at 10.3%.

Sectoral performance was mixed, with Jute gaining 1.8%, Services 0.7% and non-bank financial institutions (NBFIs) 0.5%. Mutual Funds led the losers, falling 1.2%, followed by IT at 0.8% and Ceramics at 0.7%.

Sonali Aansh, IPDC Finance, Paramount Textile, Asiatic Laboratories and Sonargaon Textile were among the most-traded stocks.

RSRM Steel topped the gainers, rising 9.52%, while Sharp Industries led the losers, shedding 5.22%.

CAL Bangladesh has recommended five listed banks – BRAC Bank, City Bank, Eastern Bank, Dutch-Bangla Bank and Pubali Bank – as its top picks, projecting share price upside of 44% to 81% as banking sector reforms create opportunities for stronger lenders to expand credit and gain market share.

In its research report titled "Banking on the Next Cycle", the investment research firm identified 14 "Cycle-Ready" banks based on asset quality, capital adequacy, funding strength and lending capacity.

It said these banks are better positioned to withstand the sector's ongoing balance-sheet adjustments and benefit from a recovery in credit demand.

BRAC Bank leads the recommendations, with a target price of Tk117.45 against its closing price of Tk65 on 5 October 2026, implying potential upside of 80.7%. City Bank has a target price of Tk48.36, suggesting a 62.8% gain from Tk29.70.

Eastern Bank's target price of Tk34.38 indicates 50.8% upside from Tk22.80, while Dutch-Bangla Bank could gain 47.8% to reach Tk67.25 from Tk45.50. Pubali Bank has a target price of Tk55.88, implying 44% upside from Tk38.80. The projections exclude cash dividend yields.

Stronger banks positioned to capture credit recovery

CAL Bangladesh said stricter loan classification and provisioning requirements have exposed deep weaknesses in the banking system, pushing deposits and future credit expansion towards better-capitalised institutions.

The sector's gross non-performing loan (NPL) ratio stood at 32.8% in June 2026, while the system-wide provision shortfall reached Tk2.2 trillion. Ten troubled banks held 74% of total NPLs, highlighting the concentration of asset-quality problems.

In contrast, the 14 Cycle-Ready banks maintained a median NPL ratio of 3.8% and a combined capital adequacy ratio of 15.79%, above the 12.5% benchmark used in the study. These banks also held Tk165.5 billion in excess capital above that threshold, providing room to expand lending as demand recovers.

The report projects private sector credit growth to accelerate from 4.3% in FY26 to 12% by FY29, adding Tk6.23 trillion to the country's private credit stock from June 2026 levels. The 14 banks could account for 55.5% of the expected expansion in credit, it said.

The recovery is expected to begin with retail and small and medium enterprise (SME) lending, including consumer finance and credit cards, before gathering momentum in corporate lending, import financing and trade services.

BRAC Bank's deposit growth, SME franchise and stake in mobile financial services provider bKash underpin its outlook, according to the report. City Bank is positioned to benefit from a recovery in consumer spending through its cards, payments and retail banking businesses.

Eastern Bank's well-provisioned loan book and transaction-banking operations support its growth prospects. Pubali Bank's nationwide network and trade relationships offer scope to expand lending, while Dutch-Bangla Bank's low-cost deposit base and extensive distribution network provide capacity to turn excess liquidity into loans.

Contagion, spread caps pose risks

Despite the opportunities, CAL Bangladesh flagged risks from financial distress at weaker banks, regulatory limits on lending-deposit spreads and concentrated corporate exposures.

The report said 22 of the country's 61 banks reported losses, while 19 fell below the statutory minimum capital adequacy ratio. Financial difficulties at troubled lenders could trigger liquidity pressures across the sector.

Regulatory enforcement of a 4% cap on weighted-average lending-deposit spreads could also squeeze net interest margins. As of July 2026, 55 banks, including 13 Cycle-Ready institutions, were operating above the ceiling, according to the report.

Large corporate exposures present another vulnerability, as loan restructuring or classification could trigger substantial provisioning requirements at individual banks.

CAL Bangladesh said the recommended banks offer attractive valuations relative to their returns on equity, but the projected gains depend on the pace of economic recovery, credit demand and banks' ability to manage regulatory and asset-quality risks.

Open-handed tax incentives and other business-boosting budgetary measures have yet to fully satisfy multinational companies (MNCs) operating in Bangladesh in an uninspiring signal for fresh foreign investment in the country.

Investment decisions are often influenced by the experiences of existing investors, particularly their ability to navigate tax regulations, comply with fiscal requirements and operate in a predictable business environment.

Several key initiatives and reforms to attract foreign direct investment are on in Bangladesh though central-bank data show net inflows faced a 28-percent year-on-year drop during the first half of current calendar year.

To assess the tax-related challenges facing foreign investors, The Financial Express spoke to leaders of foreign investors' chambers, including the Foreign Investors' Chamber of Commerce and Industry (FICCI), the American Chamber of Commerce in Bangladesh (AmCham), the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI), and the Thai Trade Centre, as well as representatives of Unilever, Coca-Cola, LafargeHolcim, Grameenphone and a former Nestlé Bangladesh executive.

The discussions revealed that, despite some welcome reforms in the latest national budget, including scrapping the minimum tax provision, multinational companies continue to face complex compliance requirements, inconsistent tax administration, delayed refunds and a disproportionate tax burden.

These challenges, they said, increase the cost of doing business and undermine investment predictability.

Tax policy and administration remain important considerations in foreign investors' decisions, particularly when companies assess the long-term viability of investments in a market.

Talking to the FE, FICCI President Rupali Chowdhury said multinational companies in Bangladesh faced several interconnected tax-related challenges, including a disproportionate revenue burden.

"A relatively small number of companies bear a significant share of the country's revenue target," said Ms Chowdhury, the long-serving Managing Director of Berger Paint Bangladesh, who is now serving as director.

As MNCs are generally more tax-compliant than many local competitors, they often operate in an uneven competitive environment, she added.

"Compliant companies are frequently subjected to multiple audits, which appear to focus on extracting additional revenue rather than broadening the tax base."

Revenue and gross profit are sometimes estimated without adequate consideration of actual business conditions or performance, she alleged.

The Finance Act 2026, however, addressed a longstanding business concern by withdrawing the minimum tax requirement, Ms Chowdhury mentioned.

A roadmap outlining tax rates for the next four years also provides greater certainty and supports investment planning.

The increase in the turnover tax rate to 1.0 per cent, however, is burdensome and could hinder business growth, she said, recommending that the rate be reduced in the next budget.

Over the next three quarters, tax policy and administration should focus on broadening the tax base, improving compliance and supporting productive businesses, she added.

Iqbal Chowdhury, vice-president of FICCI and treasurer of EuroCham Bangladesh, said many budgetary changes remained largely theoretical, as field-level tax offices were not fully aware of how to implement them.

The tax authority continued to pursue a "quick-win" approach to generating revenue from compliant taxpayers rather than expanding the tax base, he said.

A former Nestlé Bangladesh Director of legal and regulatory affairs, Debabrata Roy Chowdhury, says the initiative to collect taxes from retail businesses was intended to bring untapped sectors into the tax net.

"However, the burden was falling on companies because the National Board of Revenue (NBR) lacked the distribution capacity needed to collect taxes effectively from retailers," said Mr Roy, who is Managing Partner and Founder of ETHOS 4Si8 advisory.

Recent changes to VAT measures, including the reintroduction of monthly VAT returns, also left corporates confused about the government's intentions, he said.

He has suggested that the NBR conduct proper studies before introducing fiscal measures to ensure they were practical and implementable.

Zinnia Tanzina Huq, chief financial officer and finance director of Unilever Bangladesh, has said the NBR needed to ensure the smooth implementation of tax-collection measures targeting retailers.

She also identified challenges relating to customs valuation, restrictions on deducting legitimate business expenses and VAT-rebate limitations.

Uncertainty over the acceptance of transaction value at the import stage could trigger disputes and make landed costs less predictable, she said. Restrictions on obtaining DTA benefits for dividends and royalties also created administrative difficulties.

Shadab Ahmed Khan, Managing Director of Coca-Cola Bangladesh, pointed to high tax incidence in certain sectors, limited access to double- taxation-avoidance benefits and the need for a predictable tax regime for multinational companies.

Kazuiki Kataoka, country representative of the Japan External Trade Organisation (JETRO) and newly elected president of JBCCI, said the main tax-related challenges facing foreign investors were not limited to tax rates. "Companies are often more concerned about complexity, predictability and consistency in tax administration."

Key concerns included inconsistent interpretation and application of tax rules, frequent regulatory changes, and the administrative burden associated with withholding tax, VAT, customs procedures and documentation requirements.

Transfer pricing, cross-border service payments, and the remittance of royalties and technical fees could create additional complexities for multinational companies, he added.

In a written response to FE queries, the Thai Trade Centre said limited understanding of international accounting standards and global enterprise resource planning (ERP) systems sometimes resulted in tax assessments that did not reflect actual taxable transactions.

Multinational companies maintained high compliance standards at significant administrative costs, it said. "Inconsistent tax enforcement also created an uneven playing field, allowing less-compliant businesses to gain cost and pricing advantages."

Former AmCham president Syed Ershad Ahmed, country manager and MD of Expeditors Bangladesh, has identified complex tax-compliance requirements, multiple layers of taxation, withholding-tax obligations, delayed VAT refunds and inconsistent interpretation of tax regulations as major bottlenecks.

Tanveer Mohammad, Chief Corporate Affairs Officer of Grameenphone, the highest corporate taxpayer every year, has said the narrow tax base placed excessive pressure on compliant taxpayers as the government sought to meet its revenue targets.

"High and sector-specific tax rates also affected competitiveness and long-term investment attractiveness."

However, the GP CCO recommends a phased tax-reduction roadmap for sector-specific rates.

Accounting professional Snehasish Barua, managing partner of Snehasish Mahmud & Co, says foreign investors value predictable, rules-based tax systems.

"Our main challenge today is not just the statutory corporate tax rate, but structural bottlenecks like non-creditable advance taxes, arbitrary deduction caps, and administrative delays that trap working capital."

The government has introduced several constructive reforms in the latest fiscal framework, but their success would depend on whether operational circulars and field offices delivered the intended benefits without bureaucratic friction, he adds.

"For the remainder of this fiscal year, our focus should shift from introducing new laws to perfecting implementation: automated refunds, transparent VAT reconciliation, and a fully integrated National Single Window," he said.

Nahian Rahman, head of the Investment Development Division at Invest Bangladesh (former BIDA), says the authority remains closely engaged with foreign investors and are ready to support them in addressing any operational or policy issues they face in Bangladesh.

Despite these concerns, multinational companies acknowledge that the FY2026-27 budget has introduced several constructive measures to rationalise the tax framework and support the digital economy.

MNCs urged the government to widen the tax net rather than burden compliant businesses to meet ambitious revenue targets.

They called for rationalising sector-specific taxes, digitising tax administration and maintaining regular dialogue with businesses to simplify compliance and create a more predictable, investment-friendly tax regime.

They have described the latest budget as a positive start but said further reforms were needed.

When world leaders congregate in Antalya, Türkiye, for COP31 in November, Bangladesh, like every other edition, will arrive with one of the strongest moral cases for climate justice, but in a world driven by grossly unequal power dynamics, moral authority alone does not win negotiations.

Bangladesh's participation in the UN climate process dates to the inception years of COP. Over more than three decades, it has earned international recognition for disaster preparedness, community-based adaptation and leadership among climate-vulnerable countries. Yet a difficult question remains: has Bangladesh converted its vulnerability, experience and diplomatic visibility into sufficient negotiating power?

COP31 will be the first major climate summit attended by Bangladesh's newly elected government after July. It should therefore be treated not as another international event, but as the beginning of a 10-year climate diplomacy and investment strategy.

Turning climate vulnerability into negotiating power

Bangladesh has compelling evidence of climate-induced loss and damage. Cyclones, floods, river erosion, salinity intrusion, waterlogging and extreme heat are already damaging homes, infrastructure, agriculture, health and livelihoods. In 2024 alone, heat-related illness and productivity losses reportedly cost the country as much as $1.78 billion and resulted in the loss of 25 million working days.

These impacts are no longer exceptional disasters. They are becoming recurring development costs.

Bangladesh must arrive at COP31 with a quantified national loss-and-damage position. That requires a credible system for recording economic and non-economic losses across districts and sectors including displacement, lost livelihoods, public-health impacts, ecosystem damage and the disproportionate burdens borne by women, children and marginalised communities.

Without such evidence, Bangladesh will continue describing its vulnerability while other countries negotiate with detailed assessments, financing models and investable proposals.

The Fund for Responding to Loss and Damage is now operational, although its resources remain far below global needs. Bangladesh should advocate for predictable, grant-based access; direct access for vulnerable countries; simplified procedures; and recognition of slow-onset processes such as salinity, sea-level rise and river erosion. It must also prepare a national pipeline before funding windows open. Winning a global fund but lacking projects ready for submission would be a hollow victory.

Climate finance: Access is not the same as adequacy

It would be incorrect to claim that Bangladesh has failed entirely to access multilateral climate finance. The Green Climate Fund records approximately $464 million in financing associated with Bangladesh, while the country has also received support through the Global Environment Facility, Adaptation Fund and other channels.

The country's COP31 delegation should carry a disciplined set of priorities: capitalising the Loss and Damage Fund; securing grant-based adaptation finance; simplifying direct access to multilateral funds; protecting integrity in carbon markets; financing the National Adaptation Plan; and developing the next generation of negotiators.

However, this remains modest compared with the scale of need. Bangladesh's emerging National Climate Finance Strategy process estimates annual climate-finance requirements exceeding $26 billion. Its National Adaptation Plan extends to 2050 and requires investments on an altogether larger scale.

The real problem is therefore not complete exclusion, but the gap between vulnerability, financing needs and the country's capacity to originate, secure and implement funding at scale.

Bangladesh's difficulties include fragmented institutional responsibilities, lengthy project-development processes, limited feasibility studies, weak coordination between ministries, shortages of specialised climate-finance professionals and inadequate pipelines of bankable projects. Access frequently depends on international accredited entities, which can weaken national ownership and add layers of procedure.

The new government should strengthen direct-access institutions, establish a permanent climate project-preparation facility and build multidisciplinary teams combining climate science, economics, engineering, social safeguards, gender expertise and financial modelling.

The recently established National Committee on Climate Finance, chaired by the prime minister, could provide high-level direction, but only if it produces transparent decisions, measurable targets and clear accountability rather than another layer of bureaucracy.

Carbon trading must not become the next fashionable promise

The government's interest in carbon markets is understandable. Its election manifesto proposed a Measurement, Reporting and Verification system and a domestic carbon-trading framework covering sectors such as energy, agriculture, waste and forestry. Bangladesh has also prepared a draft carbon-market framework and designated an authority for implementing Article 6 of the Paris Agreement.

These are encouraging beginnings, but carbon credits are not free money.

A credible market requires reliable emissions baselines, sectoral data, accredited verification, a functioning registry, transparent benefit-sharing and safeguards against double counting. Bangladesh must also decide which emission reductions it can transfer without undermining its own nationally determined contribution.

Poorly regulated trading could allow inexpensive emission reductions to be sold abroad while communities receive little benefit, and Bangladesh retains more costly mitigation obligations. Carbon markets should therefore complement, not replace public climate finance, grants and domestic mitigation. Environmental integrity and community rights must come before optimistic revenue projections.

Learn from the implementation failures of the past

Previous governments did not leave Bangladesh without climate policies. The country developed the Bangladesh Climate Change Strategy and Action Plan, established the Bangladesh Climate Change Trust Fund, prepared the Delta Plan 2100, adopted a National Adaptation Plan and promoted the country's first Climate Prosperity Plan. Bangladesh also gained recognition through the Climate Vulnerable Forum.

The central weakness was not an absence of plans. It was the gap between plans, budgets, institutions and implementation.

Climate responsibilities remained dispersed across ministries. Projects were too often short-term and donor driven. Monitoring focused more on expenditure and activities than long-term resilience. Local governments and affected communities had insufficient influence over investment decisions. Meanwhile, continued dependence on fossil-fuel infrastructure weakened the coherence of Bangladesh's international climate message.

The new government should not repeat the practice of announcing another strategy whenever implementation falters. It should consolidate existing plans, publish annual progress against measurable indicators and connect climate priorities to national budgeting, energy planning and local development.

Manifesto commitments, including increasing renewable energy, expanding afforestation, reducing plastic waste and developing carbon markets must now be translated into financed programmes with deadlines and responsible institutions.

Bangladesh needs negotiators, not merely delegates

Climate diplomacy is increasingly technical. Negotiations now cover adaptation metrics, climate-finance accounting, Article 6 rules, transparency frameworks, technology transfer, just transition and the governance of loss-and-damage finance. No country can influence these discussions through speeches alone.

Bangladesh has a respected group of experienced climate negotiators, but many are approaching the later stages of their careers. The country has not built a sufficiently institutionalised succession system. Officials are transferred, younger delegates may attend without defined negotiating responsibilities, and knowledge acquired at one COP is not always retained.

Youth participation also requires honest reflection. Bangladesh has many visible climate advocates, but visibility, social-media campaigning and attendance at side events are not substitutes for technical expertise. Advocacy is valuable, but across the negotiating table sit lawyers, economists, scientists and career diplomats who have followed the same agenda for years.

Bangladesh should establish a national climate-negotiation academy or fellowship that trains young professionals continuously, not only before COPs. Participants should specialise in specific negotiating tracks, work under senior mentors, contribute to technical submissions and remain engaged between conferences. Youth representation must progress from symbolic inclusion to informed participation.

Diplomacy can multiply Bangladesh's influence

Bangladesh is not a permanent member of the Security Council, but climate negotiations do not formally operate through veto powers. Decisions are generally reached by consensus. Nevertheless, richer states possess greater influence through larger delegations, technical capacity, finance and geopolitical alliances.

Bangladesh cannot compete through delegation size alone. It must negotiate through coalitions, particularly the Least Developed Countries Group, Climate Vulnerable Forum, Group of 77 and China, and regional partnerships. Its scheduled graduation from the LDC category also makes it urgent to develop a diplomatic identity that does not depend exclusively on LDC status.

COP31's Türkiye–Australia partnership creates an additional opening. Bangladesh should engage both the host presidency and the Australian-led negotiation process well before Antalya, building alliances around adaptation finance, loss and damage, locally led adaptation and simplified access for vulnerable countries.

Bangladesh's population, adaptation experience and strategic position in the Bengal Delta mean it is not diplomatically insignificant. But influence must be organised.

The country's COP31 delegation should carry a disciplined set of priorities: capitalising the Loss and Damage Fund; securing grant-based adaptation finance; simplifying direct access to multilateral funds; protecting integrity in carbon markets; financing the National Adaptation Plan; and developing the next generation of negotiators.

After three decades of climate diplomacy, Bangladesh no longer needs to prove its vulnerability. Its next challenge is to prove that it can turn vulnerability into evidence, evidence into alliances, and alliances into finance and action.

Last week's meetings of the International Monetary Fund and World Bank yielded no new answers for the developing world to the questions posed by a spreading West Asia war, continuing war in Ukraine, rising debt payments and a potential AI bubble.

Not for the first time, lower-income countries are being rocked by the spillover from the actions of wealthier nations: rising debt service costs, higher inflation and the risk of falling ever further behind economically thanks to the AI boom.

What they got was the stock advice the global lenders always dish out: to shrink fiscal deficits and accelerate economic reforms to attract more private sector investment.

Kristalina Georgieva, the first IMF chief from a developing nation - Bulgaria - said advanced economies were in fact the worst offenders on budget imbalances. She noted that developing countries' debt levels had actually fallen in recent years, only for surging bond yields elsewhere to drive up their borrowing costs.

Average debt service payments there had more than doubled from a decade ago to 14 percent of government revenue, crowding out education, healthcare and other critical areas, she said.

Advanced Economies Focused on Their Own Problems

At a panel on Saturday, Georgieva said many issues remained unresolved, especially around AI:

"We are in a place where we have many more questions than we have answers. And my alert to everybody is: Do not fall for the guys that pretend they have the answers. They are tricking you."

Josh Lipsky, vice president of international economics at the Atlantic Council think tank, said the meetings had flunked their opportunity to come up with guidance or ways to help.

"It's hard to talk about the developing world when the advanced economies don't have their act together and are at risk of a fiscal crisis," he said. "And that's on top of political situations in many of these countries that makes development aid not a priority at the moment."

Mauricio Cardenas, Colombia's former finance minister and now a research scholar at Columbia University's School of International and Public Affairs in New York, said many policymakers were left with a deep sense that "something really bad could happen" but no real roadmap to navigate the future.

"The IMF and World Bank are not particularly well prepared for this new phase. They understand that something is going on, they bring in experts on AI," he said. "But in the end, there's no kind of specific, concrete advice on how to be prepared for something where you don't really understand how it's going to unfold."

The geopolitical tensions that have roiled both institutions since Russia's invasion of Ukraine in 2022 - complicating concerted action - were also evident in Bangkok when nearly half the delegates at an IMF steering committee walked out when Russia's finance minister spoke.

Houthi attacks on Riyadh airport delayed the arrival of the head of that committee, Saudi Finance Minister Mohammed Al-Jadaan, who had to travel overland to Qatar to catch a flight.

And Bangkok itself was a stark reminder of the challenges facing developing countries, still partly under water after floods in September that caused almost $200 million in damage to Thailand's industrial sector.

Rising Inequality Could Raise Costs in Long Term

Kate Pickett, a professor at the University of York, urged policymakers to focus on more inclusive growth rather than forcing developing countries into tough structural reforms.

"If inequality increases, if poverty deepens, that will increase their costs in the long term," she said. "It's not enough to describe an economy as resilient. It's only resilient for the rich and the privileged.”

Ayhan Kose, deputy chief economist at the World Bank, said the global economy had weathered its biggest energy shock - from the US-Israeli war on Iran - better than expected.

But while a global recession had been avoided, he said growth outlooks in both developing and advanced economies were worse than before.

Growth had already fallen off in half of advanced economies, while in developing countries as a whole, it had slowed significantly to around 3.6 percent from 4.4 percent.

“People are really worried because resilience today is not a guarantee for resilience tomorrow," he said. "Now they are worried about what will be the next shock, because every six months, if not every three months, there is a new shock."

While no specific initiatives were announced, he said the World Bank remained focused on helping developing countries prepare for advancements in AI, in part by mobilising more private capital, now at triple the levels of 2022.

Yet it, too, has to contend with sharp drops in official development aid and persistent challenges in attracting foreign investment to developing countries.

“The reality on the ground is the reality on the ground,” he said.

The Bangladesh Securities and Exchange Commission (BSEC) has proposed raising the cap on using initial public offering (IPO) and rights offer (RPO) proceeds to repay existing loans from 30% to 50%. It would also make escrow accounts mandatory to ensure the money goes to its declared purposes.

Under the draft amendments to the Bangladesh Securities and Exchange Commission (Public Offer of Equity Securities) Rules, 2025, companies would have to undergo pre-IPO verification by a BSEC-listed auditor before applying. The draft also tightens disclosure requirements for share pricing. Stock exchanges would get a 20-day deadline to review IPO applications and inspect companies' factories or business premises.

The draft was published on 18 October, and the commission has invited comments, suggestions and objections within two weeks. The proposed changes have not yet been finalised.

Loan repayment limit to rise from 30% to 50%

Under the existing provision, companies can use up to 30% of their IPO or RPO proceeds to repay existing loans, subject to specified conditions. The proposed amendment would raise the ceiling to 50%.

This means a company raising Tk100 crore through an IPO or RPO could use up to Tk50 crore to repay eligible loans, subject to the proposed conditions.

The facility would not apply to all types of borrowing. The loans must have been used for a company project or for balancing, modernisation, rehabilitation and expansion (BMRE) activities. An auditor's report would also be required to verify that the borrowed funds were used for the stated purposes.

The proposal would prohibit the use of IPO or RPO proceeds to repay loans classified as defaulted or loans that have been rescheduled.

The higher ceiling could help companies reduce their debt burdens and financing costs. However, using a larger share of public-offer proceeds to repay loans could leave less money for new projects, machinery purchases, production expansion and other business investments. Investors would therefore need to assess whether the proposed use of proceeds aligns with the company's disclosed plans.

Escrow accounts proposed for IPO proceeds

The draft proposes requiring companies to deposit IPO proceeds into a separate escrow account with a scheduled bank. The bank would have to receive written instructions restricting withdrawals or the use of funds except in accordance with the purposes and procedures specified in the prospectus.

Companies typically disclose in their prospectuses how they intend to use IPO proceeds, including for factory construction, machinery purchases, business expansion, working capital and loan repayment.

The proposed arrangement is intended to strengthen controls over the use of public-offer funds and reduce the risk of spending outside the purposes disclosed to investors. It would also provide a framework for monitoring whether companies follow their stated commitments. The detailed procedures for withdrawing and using the funds would depend on the final rules.

Pre-IPO verification by BSEC-listed auditors

The proposed amendments would require companies to obtain pre-IPO verification from an auditor listed with the BSEC before submitting an IPO application.

The verification would examine the accuracy, authenticity and completeness of financial information and disclosures included in the prospectus. The auditor's report would have to be included in the prospectus and submitted with the application.

The proposed scope covers financial records, bank accounts, loans and liabilities, the raising and use of capital, related-party transactions, and potential fraud or misrepresentation of financial information.

The measure is intended to strengthen scrutiny before companies enter the public market and improve the reliability of information available to prospective investors.

Conditional IPO eligibility exemptions proposed

The draft also proposes conditional exemptions from certain IPO eligibility requirements for specified categories of companies.

These include companies operating in regulated sectors, capital-intensive companies with an asset base of at least Tk500 crore, and Greenfield companies, subject to the conditions set out in the draft and the relevant regulatory approvals.

For eligible companies receiving such exemptions, disclosure of a plan for achieving future profitability is also proposed.

The changes could widen access to the capital market for certain companies that do not meet all existing eligibility criteria. However, the proposed exemptions would remain subject to regulatory scrutiny and the applicable conditions.

More disclosure on share pricing and valuation

To improve transparency in IPO pricing, the proposed amendments would require companies to disclose their proposed share prices and explain the rationale behind those prices.

For book-building issues, the draft also proposes disclosure of valuation statistics, including averages, medians and percentiles derived from the price-discovery process.

Companies would be required to use at least four valuation methods, including a minimum of two absolute valuation methods and two relative valuation methods.

These disclosures are intended to give investors more information to assess whether an IPO price is justified by a company's financial position, business prospects and valuation.

20-day deadline for stock exchange review

The draft proposes requiring stock exchanges to complete their review of IPO applications within 20 days, including examining financial statements and other documents and inspecting the company's factory or business premises.

Stock exchanges would also be allowed to seek assistance from experts where necessary. The proposed deadline is aimed at making the IPO review process more time-bound while retaining scrutiny of applicants' financial information and operations.

Lead issue manager to retain final responsibility

Under the proposed changes, a lead issue manager would remain ultimately responsible and accountable for the entire public offering even if it assigned specific tasks to another merchant bank or institution.

The provision seeks to prevent the lead issue manager from avoiding responsibility by outsourcing parts of the IPO process.

Changes proposed to OFS, lock-in rules and investor definitions

The draft also proposes expanding the scope of offer for sale (OFS) arrangements for eligible companies.

Changes to share lock-in requirements for foreign and strategic investors are also included. In addition, the commission has proposed revisions to the definitions of institutional investors and high-net-worth individuals, along with changes concerning the qualifications of personnel involved in share valuation.

Taken together, the proposals seek to tighten controls over IPO proceeds, strengthen pre-listing financial verification and improve transparency in share pricing and the public-offer process.

The changes will take effect only if the draft amendments are approved and formally issued by the commission.

US Secretary of State Marco Rubio is set to visit India for the second time this year, as Washington seeks to bolster ties with a strategic partner despite months of friction over a trade deal.

Rubio will meet senior Indian officials, but will bypass the Indian capital during the trip in the coming week.
Instead he will focus on investment and energy during visits to financial hub Mumbai and India’s oil hub of Jamnagar, which is home to billionaire Mukesh Ambani’s refining complex, the world’s largest.

The elephant in the room will be the inability by both countries to seal their long-awaited trade deal, experts say.

Several factors, including US President Donald Trump’s tariff blitz, friction over energy imports and Washington’s warmer ties with India’s arch-rival Pakistan have made it harder for negotiators to clinch an agreement.

Rubio will start his six-day overseas trip on Saturday with a visit first to Uzbekistan before arriving in India, according to the US State Department.

Here are some of the challenges the trade pact has faced and the road ahead.

WHY HAS THE DEAL BEEN DELAYED?

India and the United States agreed in February on the framework for an interim deal under which Washington would lower reciprocal tariffs from 25 percent to 18 percent and India would reduce duties on a range of industrial and agricultural goods.

Despite months of negotiations, the agreement has not yet been finalised and signed.

One reason is the legal uncertainty surrounding Trump’s tariff plans after court challenges undermined the reciprocal tariffs that formed their basis.

“The February framework had offered to reduce India’s reciprocal tariff... in return for substantial Indian concessions. Once that tariff regime was struck down, the value of the US offer became unclear,” trade expert Ajay Srivastava said in a note.

India is also wary of new trade measures by Washington that could impact it, including an investigation into alleged unfair practices in several countries and a new law that allows for up to 100 percent tariffs on nations that purchase Russian oil.

Trump on Friday signed an executive order that waived those threatened sanctions.

WHERE DO NEGOTIATIONS STAND?

Progress appears to have hit several hurdles.

For the better part of this year, both governments spoke optimistically about the possibility of finalising the interim deal.

US ambassador to India Sergio Gor in June said negotiators were working on the “last one percent” of the pact.

More recently, the tone has turned markedly cautious.

India’s Finance Minister Nirmala Sitharaman said last week that talks had hit a “plateau”, with little room for further concessions.
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Her remarks came days after US Trade Representative Jamieson Greer said an announcement was not “imminent”.

WHAT HAVE BEEN THE MAIN STICKING POINTS?

Agriculture remains a sensitive area for India, which is reluctant to expose farmers to greater foreign competition.

Washington, meanwhile, wants India to buy more US energy supplies.

New Delhi has also insisted that its final tariff rate should be competitive with those received by other regional manufacturing rivals such as Vietnam.

Indian trade minister Piyush Goyal said this week that the first tranche of the deal was in its final stages, but added that it would not be operational until India secured an edge over its competitors.

“It’s going through the final contours, the legal drafting, and we hope to be able to finalise that soon and operationalise that once we get competitive advantage over our peer countries,” he said.

HOW HAS TRADE BEEN HOLDING UP?

Goods exports to the US jumped 21 percent in August to $8.3 billion compared to the same month a year earlier, when India faced 50 percent tariffs.

The surge in exports has been a bright spot for the Indian economy, which has been roiled by high energy prices due to war in the Middle East.

If higher tariffs were to return, economists say it would cast a shadow on India’s growth outlook, hurt market sentiment and heap pressure on an already-weak rupee.

Businesses will no longer need prior approval from the chief boiler inspector to import boilers.

The industries ministry shared the information through a letter on October 7 to the central bank, and the banking regulator today asked all authorised dealer banks involved in foreign exchange transactions to take necessary action accordingly.
According to the ministry’s letter, the decision was taken at a board meeting as part of efforts to simplify the boiler import process.

Earlier, on July 14, Bangladesh Bank issued a circular making it mandatory to obtain prior approval from the Office of the Chief Inspector of Boilers to import boilers and boiler components.

The latest circular communicates the suspension of the prior approval requirement, but the documents do not specify whether the requirement has been permanently scrapped or whether a replacement procedure will be introduced.

Walton High-Tech Industries PLC, the country's tech giant listed in the engineering sector on the capital market, has set a unique precedent by disbursing its approved cash dividend to investors just one day after holding its annual general meeting (AGM).

According to a press release, the company distributed a 180% cash dividend to institutional and general investors for the 2025-26 financial year immediately following approval.

The disclosure came after Walton High-Tech successfully conducted its 20th AGM on a digital platform on 15 October 2026, where shareholders unanimously approved the board's proposal for a 180% cash dividend and a 10% stock dividend.

Walton's Deputy Managing Director and Company Secretary Rafiqul Islam stated that the rapid payout was made possible by the company's technological excellence, operational efficiency, and robust liquidity position.

Under the approved payout, shareholders received Tk18 in cash for each general share with a face value of Tk10, alongside one bonus share for every 10 general shares held.

The company's audited financial report shows a net profit of Tk1,124.57 crore for the 2025-26 fiscal year, up from Tk1,036.62 crore in the previous year. Consequently, earnings per share (EPS) rose to Tk33.75 from Tk31.11. Walton's net asset value (NAV) with revaluation reached nearly Tk12,704 crore, bringing the revalued NAV per share to Tk381.26 and non-revalued NAV per share to Tk280.24.

The company secretary added that the approved 10% stock dividend, sourced entirely from retained earnings, will fund Walton's ongoing expansion of green energy capacity, ensure an uninterrupted power supply, and support modernising and balancing activities.

Bangladesh Bank has disbursed around Tk 12,000 crore of its Tk 60,000 crore stimulus package by mid-October to revive struggling businesses, reopen closed factories and boost investment and employment.

More than Tk 2,500 crore was still in the process of being disbursed, according to the central bank’s latest progress report.

However, several targeted sectors, including jobless youths, have yet to receive any loans.

Announced in May, the package aims to support the troubled private sector, revive economic activity and create jobs.

It has two components: a Tk 41,000 crore refinancing fund sourced from banks with excess liquidity and a Tk 19,000 crore fund drawn from Bangladesh Bank’s own resources, backed by a government guarantee.

The scheme-wise performance showed considerable differences, with export pre-shipment credit and cottage and micro-enterprise financing recording substantial disbursements, while several employment, export diversification and rural development schemes registered no loan disbursement.

The pre-shipment credit refinance scheme emerged as the largest contributor to disbursements, with Tk 6,917 crore released against its Tk 5,000 crore target, exceeding the allocation by 38 percent.

The cottage and micro sector entrepreneurs special scheme disbursed Tk 2,500 crore against its Tk 5,000 crore target, achieving 50 percent implementation.

The CMSME working capital refinance fund released Tk 908 crore against an allocation of Tk 5,000 crore, while the creative economy scheme fully disbursed its Tk 500 crore allocation.

The overseas employment financing scheme disbursed Tk 200 crore against a target of Tk 1,000 crore.

The agriculture and rural food security refinance scheme, which has an allocation of Tk 10,000 crore, disbursed Tk 293 crore, representing around 3 percent of its target.

Similarly, the agro-based special economic center in North Bengal recorded disbursements of Tk 49 crore against its Tk 3,000 crore allocation.

Syed Mahbubur Rahman, former chairman of the Association of Bankers, Bangladesh (ABB), said even a normal loan takes more than two to four months to disburse.

Disbursing a loan requires examining many things, processing them, and involves various steps. On top of that, these are all closed factories, so even more work is required here, he said.

Furthermore, he added, there are many guidelines to follow when granting these loans under the package. For instance, there is a condition that those who have not engaged in money laundering will get the loan, but it is difficult for banks to be certain about this.

Moreover, he said, applicants must apply to receive the loan, which many do not do. In addition, there are gas shortages and several other problems, so many do not even apply.The biggest issue is that loans must be disbursed after considering whether they will be repaid. Banks have already started disbursing loans, and considering everything, loan distribution may gradually increase in the future, he added.

Vietnam and four European nations outside the EU signed a free trade agreement in Hanoi on Sunday, seeking to diversify their markets as US tariffs disrupt global commerce.

The deal, between Southeast Asia’s fastest-growing economy and the European Free Trade Association (EFTA), which includes Iceland, Liechtenstein, Norway and Switzerland, eliminates or reduces customs duties, including on imports of industrial, fish and agricultural products.

The deal was signed in the capital in the presence of Vietnam’s top leader To Lam and representatives of EFTA governments.

Vietnam said the agreement showed the parties’ resolve to “reinforce the rules-based trading system amid continued volatility in the global economy”, according to a government statement.

It was also expected to help Vietnam “diversify its import and export markets” and “integrate more deeply into global value chains”, the government said. Vietnam and EFTA concluded negotiations in July, more than a decade after the free trade talks officially began in 2012.

The parties relaunched negotiations in September last year, after they had stalled since 2018.

The agreement followed a global trade-disrupting tariff blitz by the United States under President Donald Trump which has left Vietnam with a hefty tax on its US exports amid ongoing negotiations with Washington.

Experts say the new deal reflected a shared initiative to diversify commercial ties and reduce reliance on major trading partners.

“As the US increasingly exerts trade pressure on European countries, the agreement is a joint effort to turn economic integration into greater strategic autonomy and to develop alternative commercial relationships rather than relying exclusively on their largest partners,” history and politics scholar Do Dinh Lam Khang told AFP.

For Vietnam, closer ties with EFTA economies could support its ambition to move into higher-value-added activities, Khang added.

The agreement covers trade in goods and services, intellectual property rights, trade remedies and sustainable development, among other areas, both parties say.

Bilateral trade between the EFTA and Vietnam last year was valued at 4.8 billion euros ($5.4 billion), according to the association.

Electrical and mechanical machinery, fish and pharmaceutical products were the EFTA nations’ top exports to Vietnam last year.

Machinery, footwear and apparel were manufacturing hub Vietnam’s major exports to the EFTA.

The association was created as a counterpart to the European Economic Community, precursor of the European Union which its four member states are close to but have not joined.

Linde Bangladesh Ltd reported a 19% drop in net profit for the July-September 2026 quarter, as rising power and energy prices squeezed operating margins despite top-line revenue growth.

According to a price-sensitive disclosure filed on the Dhaka Stock Exchange (DSE) today (17 October), the multinational oxygen and industrial gas manufacturer posted a net profit of Tk7.96 crore for the third quarter ended 30 September 2026, down from Tk9.86 crore recorded in the same period of 2025.

Consequently, earnings per share (EPS) fell to Tk5.23 for the quarter from Tk6.48 in Q3 2025.

Profitability declined despite a 9% year-on-year increase in quarterly revenue to Tk64.17 crore. The company attributed the profit erosion to an increased cost of goods sold driven by rising power and energy tariffs, alongside higher product distribution expenses.

For the cumulative nine-month period, Linde Bangladesh logged a 5% decline in net profit to Tk27 crore, with nine-month EPS sliding to Tk17.78 from Tk18.80 in the previous year. Nine-month revenue grew 11% to reach Tk186 crore.

Despite profit pressures, operational cash flow improved significantly. Net operating cash flow per share climbed to Tk11.67 for January-September 2026 from Tk8.25 in 2025, driven by improved trade debtors' collection.

Net asset value per share strengthened to Tk218.08 as of 30 September 2026, up from Tk210.31 on 31 December 2025.

Following the financial disclosure today, Linde Bangladesh shares closed 0.82% lower at Tk649.90 on the DSE.

Bangladesh and Oman on Saturday explored partnerships in trade, investment and skilled migration to broaden bilateral relations beyond their traditional focus on the labour market.

The issues were discussed when State Minister for Foreign Affairs Humaiun Kobir met Omani Under Secretary of Foreign Affairs Sheikh Khalifa bin Ali Al Harthy in Baghdad, a foreign ministry press release said.

The meeting took place on the sidelines of the Organisation of Islamic Cooperation (OIC) Council of Foreign Ministers.

The discussions focused on expanding cooperation in trade and investment, promoting skilled migration and exploring the possibility of establishing an institutional framework for bilateral trade.

The meeting also stressed the importance of increasing business-to-business and people-to-people contacts to make bilateral relations more substantive.

The Bangladesh Export Processing Zones Authority (Bepza) attracts around $3 million in investment per acre of land and generates an annual return of Tk13.82 crore through the efficient use of limited land, the authority said at an investor meeting in Chattogram today (17 October).

Despite challenging conditions, Bepza signed investment agreements with 36 companies in FY26, while exports from its zones reached $8.41 billion, up 2.22% from the previous fiscal year.

The figures were presented at the "Meet the Investors" event at Radisson Blu in Chattogram, attended by more than 100 local and foreign investors from the Chattogram EPZ, Karnaphuli EPZ, Cumilla EPZ, Bepza Economic Zone-1 and Bepza Economic Zone-2.

Bepza Executive Chairman Major General Mohammad Moazzem Hossain said investors had kept economic activity going despite disruptions to energy markets and supply chains caused by global trade uncertainty and geopolitical tensions, as well as power and infrastructure constraints.

"Communication is the highest form of respect. Today's event will help us strengthen our partnerships, listen directly to investors, understand their problems and expectations, and find ways to make our investment environment more competitive and business-friendly," he said.

Praising the skills of export workers, Moazzem said the zones produce a wide range of goods, including footwear, garments, jewellery, eyewear, bags, safety equipment, wedding dresses and uniforms for peacekeeping missions.

He urged investors to expand their operations into Bepza Economic Zone-1, Bepza Economic Zone-2, Jashore EPZ and Patuakhali EPZ, saying the authority would continue to support their businesses.

Bepza Member (Investment Promotion) Md Tanvir Hossain presented the authority's performance in FY26, highlighting export growth, employment, land utilisation and progress in developing new zones.

In a separate presentation, Bepza Additional Executive Director (Enterprise Services and Industrial Relations) Md Nazmul Islam Bhuiyan outlined measures to improve worker welfare and labour standards.

He highlighted 45 online services, a 24-hour helpline (16128) and the implementation of the Employment Injury Scheme. He also discussed proposed amendments to the Bangladesh EPZ Labour Act, 2019, to bring it in line with international labour standards.

An open discussion followed, during which investors and Bepza officials exchanged views on operational challenges, services and labour laws.

Earlier, on 10 October, Bepza launched three specialised country desks in Dhaka for investors from China, South Korea and Japan.

Established in 1980, Bepza oversees eight export processing zones and two economic zones, which have attracted around $7.5 billion in investment from investors across 38 countries. Cumulative exports from the zones have reached approximately $130 billion.

The authority accounts for around 20% of Bangladesh's total exports and 19.17% of its total foreign direct investment (FDI), according to the information presented at the event.

Singapore’s economy grew more than 5 percent in the most recent quarter, continuing an AI-fuelled boom that has made the city-state one of the fastest-growing advanced economies.

Gross domestic product (GDP) grew 5.4 percent year-on-year between July and September, down from a 6.2 percent expansion in the second quarter, according to advance government estimates released on Wednesday.

Manufacturing, which is dominated by the city-state’s semiconductor industry, grew 7.5 percent, according to the estimates from the Ministry of Trade and Industry.

Increased output in “electronics, precision engineering, transport engineering and general manufacturing clusters” drove growth, the ministry said, offsetting declines in the chemicals and biomedical sectors.

Construction, including AI-related investments such as data centres, expanded 8.8 per cent, according to the figures.

Despite the heady expansion, Singapore’s central bank left its monetary policy settings untouched in its latest announcement on Wednesday, citing expectations that AI demand will cool in 2027.

The Monetary Authority of Singapore, which manages monetary policy through currency exchange rates rather than interest rates, said it expected core inflation to average 1.5–2.0 percent in 2026.

“Global AI-driven growth is expected to ease in the latter half of next year from its current exceptional pace, while higher interest rates, amid elevated inflation in the advanced economies, would weigh on final demand growth,” the central bank said in a statement.

Singapore is a major global player in the booming chip sector, a position that has helped it weather choppy economic conditions, including the energy shock prompted by the US-Israel war on Iran.

The Southeast Asian city-state accounts for roughly 10 percent of global semiconductor output and 20 percent of semiconductor equipment production, according to government figures.

Yeow Hwee Chua, an assistant professor of economics at Nanyang Technological University, described Singapore’s economic performance as “impressive for a high-income economy, especially given the uncertain global environment”.

“The global technology investment boom has been an important driver,” Chua told Al Jazeera.

“Strong demand for electronics has supported manufacturing and related wholesale trade, illustrating how Singapore benefits from its position in global supply chains,” he said.

Singapore’s economy is expected to grow 5 percent in 2026, according to the IMF’s latest economic forecast, faster than any other advanced economy except Taiwan.

The city-state’s GDP grew 5 percent in 2025, its second straight year of growth above 5 percent – the first such streak since 2010 and 2011.

On support for young entrepreneurs and talented youths, Prime Minister Tarique Rahman has said the government is working on plans to launch a startup fund worth Tk 5 billion (Tk 500 crore).

The prime minister on Saturday urged young people to take the lead in building a Bangladesh for all, saying national interests must come first to ensure the welfare of every citizen.

“Your goal should be Bangladesh first and Bangladesh for all. Young people must come forward to build such a Bangladesh,” he said.

The prime minister was speaking at the Youth Volunteer Award 2026 and Grant Distribution ceremony organised by the Ministry of Youth and Sports at the Shapla Hall of the Prime Minister’s Office in Tejgaon, reports UNB.

Highlighting the contributions of young people across the country, he said many youths are voluntarily helping others and standing beside people in times of need alongside their studies and professional responsibilities.

Tarique Rahman described their initiatives as important for the country and urged them to use their energy, courage, talent and initiative for national development and public welfare.

Addressing the award recipients, he said young people play a crucial role in advancing a country, noting that most athletes who succeed in competitions such as the Olympics are young.

The prime minister also referred to the War of Liberation and the 2024 mass uprising, saying while senior people might have contributed their wisdom, ideas and advice, young people played a significant role on the ground.

He said the government is working to implement the pledges made before the election, noting that those commitments are now not only the government's but also the people's.

He said the country can progress faster by harnessing young people's talent, innovative thinking and enthusiasm.

The prime minister urged them to look beyond their personal development and consider the welfare of all citizens.

At the ceremony, Tarique Rahman presented the Youth Volunteer Award 2026 to 15 young volunteers and representatives of youth organisations in recognition of their outstanding contributions to voluntary activities in different fields. Each recipient received a Tk 100,000 cheque, a crest and a certificate.

The government also provided grants of Tk 200,000 each to 432 youth organisations to strengthen their activities.

Three award recipients shared their experiences of voluntary work, while State Minister for Youth and Sports Md Aminul Haque spoke about various government plans for young people.

Prime Minister’s Political Adviser Mirza Abbas was present at the event. Youth volunteers from all 64 districts joined the programme online.

The government plans to introduce a single online portal for issuing trade licences and a coordinated inspection system to reduce administrative delays, costs and harassment for businesses, Commerce Minister Khandakar Abdul Muktadir has said.

The government is also considering extending trade licence validity and replacing the existing licence with a "business registration certificate" or a similar document to simplify procedures and improve service delivery, he informed.

Speaking at the first meeting of the National Task Force on "Deregulation and Business Facilitation" at the Finance Division conference room in the Secretariat today (17 October), the minister stressed the need to remove unnecessary barriers to business operations and create a more investment-friendly environment.

The meeting, chaired by Finance and Planning Minister Amir Khosru Mahmud Chowdhury, reviewed progress on initiatives to reduce business costs, remove unnecessary regulations, simplify administrative procedures and improve conditions for domestic and foreign investment.

Currently, trade licences are issued separately by union parishads, municipalities and city corporations. Under the proposed system, businesses would be able to submit applications and required documents, pay fees and obtain licences online through a single portal, without visiting the relevant offices.

The task force also discussed simplifying the renewal of work permits and security clearances for foreign employees.

Muktadir said foreign nationals working in Bangladesh are generally employed by legitimate, registered businesses that pay taxes and whose managing directors or directors are legal citizens of the country.

He said it was unacceptable for such companies to face unnecessary complications in renewing security clearances despite submitting applications and required certifications.

The minister called for discussions and coordination with the Home Ministry to make the renewal process more transparent, efficient and straightforward.

Joint inspections planned

The government is also planning to introduce a coordinated inspection system under the leadership of the Invest Bangladesh Authority to reduce repeated inspections by different agencies.

Under the proposed arrangement, inspections covering building safety, fire safety and environmental compliance would be conducted jointly on a pre-scheduled date, with representatives of the relevant agencies and the Invest Bangladesh Authority participating.

The initiative is expected to reduce the need for multiple visits to the same establishment, saving businesses time and money while reducing administrative hassles.

The meeting identified five priority sectors for reviewing and simplifying business-related approvals, permits and licences, where delays and overlapping responsibilities among agencies have created obstacles. The initiative will gradually be expanded to other sectors.

Muktadir stressed the need to eliminate unnecessary restrictions, lengthy approval procedures and poor coordination among government agencies.

He urged the relevant authorities to work together to ensure transparent, accountable and efficient public services for investors.

Focus on regulatory reform

The meeting was attended by task force members, including Environment, Forest and Climate Change Minister Abdul Awal Mintoo, Law Minister Asaduzzaman and Invest Bangladesh Chairman Ashik Chowdhury.

Senior officials from the National Board of Revenue, Bangladesh Securities and Exchange Commission, Finance Division, Ministry of Shipping and the Registrar of Joint Stock Companies and Firms also attended. Federation of Bangladesh Chambers of Commerce and Industry President and other senior officials were present.

The task force emphasised administrative reforms, expanded digital services and stronger coordination among government agencies to make business and investment services faster and more accessible.

The government expects the proposed measures to reduce the time and cost of doing business and strengthen Bangladesh's investment climate.

Renata, one of Bangladesh's leading pharmaceutical manufacturers, reported a 64% increase in consolidated profit to Tk364 crore in FY26 from Tk222 crore in FY25, driven by operational and management efficiencies, lower financing costs, and strong volume-driven sales.

According to its financial statements, Renata's consolidated revenue grew only 7.7% year-on-year to Tk4,620 crore in FY26 despite the significant increase in profit.

The company recommended a 55% cash dividend, equivalent to Tk5.50 per share, unchanged from the previous fiscal year. At a board meeting today (17 October), the drug-maker approved its annual financial statements and recommended the dividend.

The annual general meeting (AGM) is scheduled for 19 December and will be held virtually. The record date for determining shareholders' eligibility for the dividend is 15 November.

In a press statement, the company attributed the profit growth to operational efficiencies, lower financing costs and higher sales volumes in domestic and international markets, despite persistent macroeconomic pressures, pricing constraints, and global geopolitical uncertainties.

Growth was led by its core domestic pharmaceutical segment, which accounted for more than 70% of total revenue and expanded 11.6%. Its export, consumer and agro businesses also recorded steady growth.

Revenue from animal health remained almost flat year-on-year, while contract manufacturing revenue declined 11.9%.

Revenue at both subsidiaries also increased, with Renata Pharmaceuticals (Ireland) Limited growing 12.2% and Renata (UK) Limited 13.8% from the previous fiscal year.

The company attributed the improvement in profitability to higher gross margins, supported by effective procurement, operational efficiency and disciplined inventory management, alongside significantly lower financing costs following strategic capital restructuring.

Gross profit increased 17.9%, while earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 34.5%, according to the financial statements.

During the year, Renata continued to pursue its long-term growth strategy through investments in manufacturing capacity expansion, automation and renewable energy integration. It also expanded its pipeline of bioequivalent products to strengthen its position in domestic and international markets.

Debt burden declines

Renata strengthened its capital structure during FY26, reducing its total debt by Tk459 crore.

Following the reduction, the company's outstanding debt stood at Tk1,429 crore, comprising Tk978 crore in long-term debt and Tk451 crore in short-term liabilities.

As its debt burden declined, net financing costs fell 22.4% in FY26 compared with the previous year.

The company attributed the reduction to a 24.9% decline in gross interest expenses before interest capitalisation, driven by continued capital restructuring.

This included a shift from short-term borrowing to lower-cost long-term funding, supported by an International Finance Corporation loan facility and the issuance of Tk325 crore in convertible preference shares in October 2025.

Interest capitalisation declined 52.1%, primarily reflecting the capitalisation of major capital work-in-progress projects, including the Kashor General Facility (Solid), and a robotic warehouse. Interest income from surplus funds held in interest-bearing accounts increased 33.4%.

Foreign exchange losses also fell 86.8%, which the company attributed to risk-management measures, including the adoption of hedge accounting, efficient use of forward contracts and relatively stable exchange rates during the year.

Changes introduced in the national budget for FY27, which had a retrospective impact on the income year 2025-26, also generated significant corporate income tax savings. These were recognised in the fourth quarter of FY26, the company said

Should Bangladesh deliberately weaken the taka to make exports more competitive? No. Policymakers should not defend an exchange rate that no longer reflects economic realities. The objective should be a market-responsive taka that supports stability without aggravating inflation or undermining confidence.

The argument for depreciation appears straightforward. A weaker taka raises the local-currency value of dollars earned by exporters and can make Bangladeshi goods cheaper for overseas buyers. Export competitiveness depends on production costs, productivity, quality and delivery reliability, not simply on the number of taka received for a dollar.

Consider a garment exporter earning $100. At Tk 85 per dollar, the receipt is Tk 8,500; at Tk 120, it becomes Tk 12,000. But profit does not rise by the same proportion. Imported cotton, yarn, chemicals, fuel and machinery also cost more in taka. Overseas buyers may negotiate lower dollar prices, capturing part of the exchange-rate benefit. The net gain depends on local value addition, imported input costs, wages and bargaining power.

Bangladesh’s experience since 2022 underlines the point. The taka depreciated amid pressure on foreign exchange reserves. Yet depreciation alone could not guarantee export growth. Global demand, freight and energy prices, access to imported inputs and buyers’ pricing decisions influenced performance. A cheaper currency can provide breathing space, but it cannot replace productivity or reliable logistics.

Nor does the dollar rate tell the story. Bangladesh trades with China, India, the European Union, Japan and the United Kingdom. The nominal effective exchange rate (NEER) measures the taka against a weighted basket of trading-partner currencies. The real effective exchange rate (REER) adjusts this measure for relative prices and inflation, offering a better indication of price competitiveness.

If Bangladesh’s prices and production costs rise faster than those of competitors, depreciation’s advantage can erode. Conversely, nominal appreciation need not damage competitiveness as much if domestic costs rise more slowly. Maintaining an artificially strong currency carries risks. When the exchange rate is held below a sustainable level despite market pressure, foreign currency can become scarce, import payments may be disrupted and reserves come under strain.

But allowing the taka to weaken without restraint would be costly. Bangladesh relies on imported fuel, food commodities, raw materials and capital goods. Depreciation can raise domestic prices, erode household purchasing power and increase manufacturers’ costs. It can also make repayments more expensive for businesses with foreign-currency liabilities. With inflation elevated, policymakers cannot treat depreciation as a painless export subsidy.

The Bangladesh Bank’s move to a crawling-peg arrangement in May 2024, followed by greater freedom for banks to negotiate foreign-exchange rates, marked a shift towards a more market-responsive system. The priority should be consistent implementation, transparent price discovery and adequate liquidity, not defending an arbitrary rate.

Exchange-rate policy must work alongside credible monetary and fiscal policies. A weaker taka cannot correct poor export diversification, high logistics costs, energy disruptions or low productivity. Better ports, predictable access to imported inputs, stronger skills and reliable infrastructure can improve competitiveness without imposing the full burden on consumers. The question is not whether the taka should lose value against the dollar. It is whether the exchange rate can adjust to changing conditions without disorderly volatility. Authorities should address market dysfunction while allowing prices to reflect underlying conditions, rather than resisting every depreciation or appreciation.

Bangladesh needs neither a deliberately weak taka nor an artificially strong one. It needs a responsive currency, supported by sound macroeconomic management and structural reform. Export strength will depend less on how many taka buy a dollar than on how efficiently Bangladesh produces, delivers and competes.

The writer is an economic analyst

Businesses have identified at least 107 obstacles to improving the ease of doing business in Bangladesh, with customs and VAT-related issues accounting for the largest share at 37.

The issues span several government agencies, including the Finance Ministry, Commerce Ministry, customs and tax authorities, Environment Ministry, Bangladesh Bank and Home Ministry.

Business leaders raised the concerns at the first meeting of a committee on ease of doing business yesterday, attended by Finance and Planning Minister Amir Khosru Mahmud Chowdhury, Commerce Minister Khandakar Abdul Muktadir and other ministers.

Sources said a 22-member committee, comprising representatives from the government and private sector, has been formed following the directives from the prime minister to identify barriers to business and coordinate efforts to remove them.

Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association, told TBS that 107 issues had been identified, including 37 related to customs and VAT, with some already under consideration for resolution.

Babu said the first meeting had raised expectations among businesses that long-standing problems would be addressed.

Progress will be reviewed at the next meeting, he added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said businesses faced major difficulties involving customs, bonded warehouses, VAT and income tax.

These include alleged arbitrary decisions by customs officials over harmonised system codes and product valuation, delays and harassment during product inspections, seeking illicit financial facilities during audits of bonded-warehouse licence holders, and complications in approving raw material entitlement, the business leader, who was not present at the meeting, told this newspaper over a mobile phone.

He said the problems had been discussed for years but had seen little meaningful resolution.

Hatem said the committee's formation under the prime minister's directive could strengthen accountability and help ensure effective action to remove long-standing barriers to business.

Rupali Haque Chowdhury, president of the Foreign Investors' Chamber of Commerce and Industry, said delays in issuing work permits and processing visas remained major concerns, particularly involving the Home Ministry.

Slow automation at the National Board of Revenue, delayed tax refunds and harassment of compliant companies through audits were also raised at the meeting, the business leaders said.

They also highlighted difficulties and delays in obtaining visas and work permits for foreign nationals.

Businesses welcome quick measures

Meeting sources said the government had directed relevant agencies to address some issues promptly. Officials are expected to present a detailed progress report at the next meeting, planned within a month.

Rupali Chowdhury said one immediate measure would allow industrial facilities to begin operations after receiving the necessary approval, without waiting for separate fire safety and environmental clearances.

Under the proposed arrangement, the relevant departments would conduct inspections in coordination and submit their reports within a specified timeframe, she said.

She said the move could reduce delays and make business operations easier.

Rupali Chowdhury added that applications could be deemed approved if the relevant authorities failed to make decisions within the stipulated timeframe.

Hatem said the committee's formation under the prime minister's directive could strengthen accountability and help ensure effective action to remove long-standing barriers to business.