Changes to customs measures introduced in the FY2026-27 budget are expected to generate an additional Tk 35 billion in import-tax revenue to contribute to an ambitious target.

The gain is estimated despite estimated revenue losses from duty-and tax concessions.

According to a recent estimate by the National Board of Revenue (NBR), the budgetary changes are projected to generate the gross revenue gains from increases in customs duty, regulatory duty (RD), supplementary duty (SD) and value-added tax (VAT).

Among the revenue-enhancing measures, increases in regulatory duty are projected to contribute the largest share -- Tk 13.08 billion. Supplementary duty increases are expected to generate Tk 6.94 billion, followed by customs duty at Tk 3.07 billion and VAT at Tk 1.11 billion.

However, adjustments to minimum values for imported goods are estimated to reduce revenue by Tk 17.75 billion, an internal document, according to a document prepared by a customs taskforce and recently submitted to finance and planning adviser Rashed Al Titumir.

The estimates indicate a net revenue gain from the combined effects of the budget revisions, despite concerns over extensive tax exemptions.

The data show the customs wing of the NBR would lose a total of Tk 24.22 billion in revenue, including adjustments in MV, due to offering tax waivers in the budget.

The NBR has prepared the estimates to present the revenue -mobilisation outlook at the ongoing discussions with the International Monetary Fund (IMF) in Bangkok, Thailand, officials said.

A senior NBR official said that despite repeated recommendations for reducing dependence on import taxes, the government has set an ambitious revenue target for the customs wing for the current fiscal year, to contribute to the national budget of over Tk 9.0 trillion.

For FY2026-27, the government has set a customs revenue target of Tk 1.57 trillion, up from Tk 1.12 trillion in FY2025-26, representing an increase of around 40 per cent.

Customs revenue grew by nearly 12 per cent in the previous fiscal year.

Trade economist Dr Masrur Reaz says Bangladesh's economic growth is expected to slow to dip below 3.5 per cent, according to projections by the IMF, and such slower growth will likely dampen import demand, making the government's ambitious revenue targets, particularly the projected 40-percent growth in customs duty collection, unrealistic.

"Although higher prices of imported fuels and gas may generate more ad valorem taxes, declining import volumes could offset the gains. Moreover, some state-owned entities record tax liabilities in their accounts but do not actually pay the taxes, creating a gap between assessed revenue and actual collection," says Mr Reaz, founder-chairman of Policy Exchange Bangladesh.Buy Maps

Bangladesh's heavy reliance on customs duties for revenue growth is also inconsistent with international best practices and the country's preparations for graduation from the least -developed-country (LDC) category, he points out.

"The government should gradually reduce its dependence on tariffs ahead of graduation rather than maintain high tariff barriers or remove them abruptly, which could create economic disruptions," he suggests.

The customs wing estimates that revenue collection would reach Tk 1.23 trillion through natural growth, leaving a substantial gap to be bridged through policy changes and other revenue-enhancing measures.

The customs wing has also projected the recovery of Tk 200 billion in revenue arrears stuck with government agencies and private organisations.

Of this, the NBR expects to collect Tk 50 billion by resolving cases involving bond licence-holders.

Another Tk 35 billion is projected to come from intelligence operations, crackdowns and preventive measures against the misuse of bonded-warehouse facilities.

The customs wing expects to generate a further Tk 17 billion through post-clearance audits, auctions of pending goods, customs valuation and assessment measures.Economic analysis reports

The senior official, however, described the projected additional revenue as insignificant compared with the ambitious target set for the current fiscal year.

The increases in import taxes cover 171 products, identified by their Harmonised System (HS) codes, across the four tax categories. These include 61 codes for regulatory duty, 33 for supplementary duty, 53 for customs duty

and 24 for VAT.

In contrast, adjustments to minimum values for 210 goods are estimated to reduce revenue by Tk 17.75 billion, offsetting a substantial portion of the gains expected from higher duties and VAT.

"Taxing imports is effectively taxing exports, as it creates an anti-export bias. Consumers in the domestic market are also bearing the brunt of higher prices. This conspiracy against trade must end," said Dr Zaidi Sattar, chairman of the Policy Research Institute of Bangladesh (PRI).

Bangladesh’s garment exports to Poland are rising as the Russia-Ukraine war disrupts direct trade with Russia and buyers shift sourcing from China, even as shipments to several major markets face pressure.

Garment exports to Poland grew 9.8 percent year-on-year to $1.86 billion in fiscal year 2025-26 (FY26), according to Export Promotion Bureau (EPB) data.

In contrast, Bangladesh’s total garment exports fell 1.64 percent during the fiscal year.

The slowdown has continued in major destinations. Bangladesh’s garment exports to the US fell 5.3 percent in the first half of 2026, while shipments to the European Union declined 11.67 percent in the first eight months, according to World Bank and Eurostat data.

Industry leaders attribute the growth in exports to Poland partly to Polish buyers re-exporting garments to neighbouring Russia, where sanctions-related payment difficulties have complicated direct trade.

They also cite demand for basic garment items and opportunities created by Chinese suppliers losing orders.

A GROWING MARKET

Bangladesh exported garment items worth $1.38 billion to Poland in FY21, with the amount rising to $2 billion in FY22, according to EPB data.

Exports fell to $1.40 billion in FY23 before recovering to $1.54 billion in FY24 and $1.69 billion in FY25.

In contrast, garment exports to Russia have declined since the war began in February 2022.

Before the war, Bangladesh exported more than $665 million worth of garment items to Russia in FY21, with industry players considering it as a rising market for Bangladeshi apparels.

Exports to the country have since continued to fall, standing at $257.26 million in FY26.

POLAND AS A ROUTE TO RUSSIA

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said a significant volume of garment items was being re-exported from Poland to Russia.

Before the Russia-Ukraine war, Turkish traders also imported Bangladeshi garments for re-export to Russia, he said. Exports to Turkey declined after the country imposed a 17 percent duty on Bangladeshi garment items in 2011, according to him.

After the war began, Polish importers started re-exporting garments to Russia, contributing to the growth in Bangladesh’s exports to Poland, said Mahmud.

Salah Uddin Ahmed, managing director of IFS Texwear (Pvt) Ltd, which exports nearly $2 million worth of knitwear a month, also said some Polish buyers sourcing garments from Bangladesh also re-export products to Russia.

He, however, said he did not have specific evidence confirming that the garments being re-exported to Russia were sourced from Bangladesh.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Poland could serve as a third country for exporting garments to Russia.

Western sanctions imposed after Russia’s invasion of Ukraine restricted several Russian banks’ access to the SWIFT international financial messaging system. The restrictions complicated some cross-border payment arrangements, making it harder for Bangladeshi exporters to receive payments from Russian buyers.

The war has also disrupted payments involving buyers linked to Russia. 28 Bangladeshi garment exporters have been struggling to recover $5.2 million from a Polish buyer for nearly two years, said Mijanur Rahman, managing director of Fabrica Knit Composite Ltd and a vice-president of the BGMEA.

Mijanur, who has been coordinating efforts to resolve the payment issue, said the buyer’s business had been disrupted by the war.

CHINA’S LOST ORDERS, BASICWEAR DEMAND

Exporters say the rise in shipments to Poland is not solely linked to the Russia-Ukraine war.

According to Mijanur, the loss of work orders by Chinese suppliers was one of the reasons behind the increase in Bangladesh’s garment exports to Poland.

Demand for basic garment items in the market was also strong, he added.

IFS Texwear’s Salah Uddin, meanwhile, noted that Poland was a growing market for Bangladeshi exporters because they enjoy zero-duty access under the European Union’s trade arrangements.

The duty advantage, combined with demand for basic garments and possible shifts in sourcing from China, has supported Bangladesh’s exports to Poland, exporters said.

US President Donald Trump has waived key sanctions and tariffs targeting Russian exports a day before they were due to take effect, providing potential economic relief to major buyers of Russian energy, including India and China.

In an executive order, Trump said the waiver was in the national interest of the United States. The decision suspends the implementation of the measures rather than permanently repealing them, leaving the administration with the option of enforcing them later, says NDTV.

"I am hereby waiving the application of such sanctions, restrictions, and duties provided for in the Graham Act. I have submitted to Congress a certification that the issuance of such a waiver at this time is in the national interest of the United States," Trump stated in the executive order.

The waiver came shortly before the 18 October deadline under the legislation.

Sanctions legislation

The Lindsey O Graham Sanctioning Russia and Iran Act of 2026, passed last month, was designed to restrict financial resources supporting Russia's war in Ukraine by targeting Russian officials, financial institutions, energy interests and foreign partners supporting Moscow's military operations.

The legislation provided for tariffs of up to 100% on goods from the five largest buyers of Russian crude oil: China, India, Slovakia, Hungary and Azerbaijan. It also proposed tariffs of 500% on US imports of Russian energy products and direct sanctions against Russian President Vladimir Putin, senior government officials and key Russian entities.

The measures could have exposed up to 10 countries to tariff threats.

India defends energy policy

The proposed 100% tariff on Indian goods would have been added to an existing 10% US tariff imposed over forced-labour concerns, according to the information provided.

The move would have followed earlier trade tensions between Washington and New Delhi over India's purchases of Russian crude. An additional 25% tariff on Indian imports had previously been imposed over those purchases before being removed in February 2026 under a US-India trade framework.

Before the waiver, India had reiterated its determination to protect its trade and economic interests.

"As stated on several earlier occasions, India remains firmly committed to ensuring energy security for its 1.4 billion people. It will continue to do so through diversified sourcing and based on evolving market dynamics," India's Foreign Ministry said.

The ministry also warned of potential consequences for bilateral ties and global energy markets.

"The potential consequences of oil tariffs for not just the bilateral relationship but also the international energy market have been very clearly articulated by the Indian side," it said.

US-Russia energy ties and Ukraine war

The waiver comes alongside a reported agreement for Russia to supply more than 300,000 tonnes of diesel to the United States immediately, with further shipments planned.

Ukrainian President Volodymyr Zelensky criticised the transaction, describing it as "unworthy of our partners" and a "weak decision". He also said Moscow was expressing "thanks" for the deal while continuing its attacks on Ukraine.

Trump has also criticised Zelensky's handling of negotiations to end the war.

"I suggest they get a new leader who can make a deal. For some reason (Zelensky) never does," Trump said.

Dhaka is preparing to seek $100 million in fresh sovereign equity from Saudi Arabia to recapitalise the Saudi-Bangladesh Industrial and Agricultural Investment Company Limited (SABINCO), matching its own proposed contribution, according to official documents.

In this regard, Foreign Secretary Asad Alam Siam, in a letter dated October 5, proposed the finance minister write to his Saudi counterpart, enclosing the draft letter and a strategic paper ahead of the prime minister's possible visit to Riyadh.

The foreign ministry said with regard to the prime minister's possible visit, taking up the initiative quickly could create an opportunity for positive consideration by the Saudi authorities.

According to the letter, the proposed investment areas are aligned with the Saudi Vision 2030.

The draft is accompanied by a strategic paper titled "Capital Expansion, Bilateral Equity Recapitalisation and Joint Sovereign Guarantee Framework (2026-2030)" and prepared in consultation with SABINCO.

It had been provided to the finance minister to take the next course of action, including necessary approval in this regard, a senior official of the Finance Division said last week.

According to the letter, dated October 1 and drafted by the foreign ministry, from Finance Minister Amir Khosru Mahmud Chowdhury to his Saudi counterpart Mohammed bin Abdullah Al-Jadaan, the government has decided to inject $100 million in fresh sovereign equity into the company.

The minister invited Saudi Arabia to make an equal contribution, which would raise the total recapitalisation package to $200 million.

Established in 1984 as a 50:50 sovereign joint venture between Bangladesh and Saudi Arabia, SABINCO has maintained a sound record of commercial operations and development financing over four decades, the letter said.

The proposed capital injection is expected to enhance SABINCO's capacity to finance investments in renewable energy, agro-processing and cold-chain infrastructure, pharmaceuticals and active pharmaceutical ingredients (APIs), healthcare, advanced manufacturing, and other productive sectors, officials at SABINCO believe.

The recapitalisation would also help the company mobilise additional concessional financing from multilateral and Arab development institutions, thereby leveraging the proposed contributions of the two governments, according to the document.

The draft letter outlines several strategic benefits for Saudi Arabia from the proposed investment.

Agro-processing and cold-chain projects in Bangladesh could help ensure reliable food supplies to the Saudi market and support the kingdom's food security objectives, it says.

Expanded pharmaceutical and API production could also create supply opportunities for Saudi drug companies, while SABINCO could act as a local financing and co-investment partner for Saudi firms seeking to expand their presence in Bangladesh and the wider South Asian market, the letter says.

The foreign ministry said in view of the possible visit by the prime minister to Saudi Arabia, an early move on the proposal could create an opportunity for favourable consideration by the Saudi authorities.

The ministry would arrange to send the letter to the Saudi finance minister once the Bangladesh finance minister approves and signs it, according to the correspondence. On October 7, the foreign ministry sent the documents to Finance Division Secretary Dr Md Khairuzzaman Mozumder to take necessary steps.

Bangladesh is going to observe the International Day for Eradication of Poverty today (Saturday) with a worsening poverty situation, as prolonged economic slowdown, persistent inflation and shrinking employment opportunities push more people below the poverty line.

The World Bank (WB) estimates that the country's national poverty rate rose to 22.5 per cent in fiscal year (FY) 2025-26, up from 18.7 per cent in 2022, reversing part of the progress Bangladesh made in reducing poverty over the past decade.

According to the WB's October 2026 Bangladesh Development Update report, around 2.1 million additional people fell below the international poverty line during last FY2026.

The report also warns that nearly 62 million Bangladeshis remain vulnerable to falling into poverty following an economic or personal shock.

The findings came ahead of October 17 (today) observed globally as the International Day for the Eradication of Poverty, highlighting the growing challenge facing policymakers as the country struggles to restore economic growth, protect household purchasing power and generate adequate employment.

The United Nations designated the day in 1992, though the date traces back to 1987, when over 100,000 people gathered in Paris at the Trocadéro to honour victims of extreme poverty. The latest estimates indicate that Bangladesh's poverty has increased for a fourth consecutive year, reflecting the combined effects of elevated living costs, weak labour demand and sluggish economic activity.Economic analysis reports

The WB's estimate of 22.5 per cent is based on its modelling and should not be confused with a new official household poverty survey.

The Bangladesh Bureau of Statistics (BBS), in its Household Income and Expenditure Survey (HIES) 2022, put the national poverty rate at 18.7 per cent and extreme poverty rate at 5.6 per cent.

The BBS survey had recorded a significant decline in poverty from 24.3 per cent in 2016 and 31.5 per cent in 2010, demonstrating the progress made before the recent economic difficulties.

However, the World Bank's latest assessment suggests that the gains have come under increasing pressure.

According to the WB, persistent inflation has emerged as a major threat to poverty reduction, particularly for low-income households that spend a large share of their earnings on food, housing, transport and other essential items.

Although average inflation eased to 8.7 per cent in FY2026 from around 10 per cent in FY2025, prices remained high, continuing to erode the purchasing power of households whose incomes have failed to keep pace, the Bank said.

Employment fell by nearly two million between 2023 and 2024, while a further decline of around 0.8 million was expected in 2025, according to the bank's labour-market assessment, the WB said.

Industrial activity has also suffered from shortages of gas and electricity, forcing some businesses to cut production, reduces working hours or lay off workers. The resulting loss of earnings has left many households more exposed to rising living costs.

Bangladesh's economic growth slowed to 3.4 per cent in FY2026, according to the World Bank's October update, down from 3.5 per cent in FY2025 and 4.2 per cent in FY2024.

The slowdown has weakened the economy's capacity to generate the jobs and income growth needed to reduce poverty.

Bangladesh has made substantial progress in reducing poverty between 2010 and 2022. The World Bank's 2025 Poverty and Equity Assessment said the national poverty rate fell from 37.1 per cent in 2010 to 18.7 per cent in 2022, lifting approximately 34 million people out of poverty.

Extreme poverty declined from 12.2 per cent to 5.6 per cent over the same period.

But the assessment also found that the pace of poverty reduction slowed after 2016 and economic growth became less inclusive, with income gains increasingly favouring better-off households.

The bank estimated that around 62 million people-roughly one-third of the population-were vulnerable to falling back into poverty because of illness, natural disasters, job losses or other unexpected shocks.

The latest deterioration reinforces concerns that progress in poverty reduction remains vulnerable when growth fails to translate into secure employment and sustained improvements in real incomes.

Expressing concern over the effectiveness of government social protection programmes, the WB said Bangladesh operates numerous social assistance schemes, subsidies and cash-transfer programmes, but weaknesses in targeting mean that support does not always reach the households most in need.Economic analysis reports

The bank's latest assessment says the country's social protection system remains fragmented, with overlapping programmes and inadequate benefits limiting its ability to protect vulnerable people.

Evidence from 2022 showed that half of the poorest households did not receive any social assistance benefits, while 35 per cent of the richest households received such support.

The World Bank has urged the government to improve the targeting of cash transfers, consolidate fragmented programmes and strengthen assistance for poor and vulnerable households.

The World Bank has identified productive employment as central to restoring Bangladesh's poverty-reduction momentum.

Its poverty assessment calls for more and better-paid jobs, particularly for young people, women and vulnerable workers, alongside stronger agricultural value chains, improved connectivity and a more supportive business environment.

The challenge is significant for a country where millions of young people enter the labour market and where industrial expansion, private investment and employment generation have weakened.

Economists and development experts have long argued that sustained poverty reduction requires more than economic growth alone.

Bangladesh Bank has consolidated existing rules on licensing foreign exchange dealers, money changers and gold traders into a single circular to make regulatory requirements easier to access and follow.

The circular, issued yesterday, brings together existing instructions on issuing and renewing licences for authorised dealers (ADs), money changers, limited money changers, authorised gold dealers (AGDs) and authorised importers of gold ore and dore.

The circular aims to streamline licensing and operational procedures by consolidating previous instructions, with necessary modifications and updates, into a single document.

It covers licensing and renewal procedures, foreign currency transactions, gold imports and exports, anti-money laundering and combating the financing of terrorism (AML/CFT) compliance, reporting requirements, and the central bank’s inspection and licence cancellation powers.

It also sets out eligibility criteria and application procedures for authorised importers of gold ore and dore.

Under the circular, authorised dealers may process applications for money changer and authorised gold dealer licences on behalf of customers and forward them to the central bank. The issuance of licences, however, remains subject to BB’s decision.

The circular will remain in force for one year. Previous instructions on matters covered by the new circular will stand repealed to the relevant extent, while subsequent instructions, amendments and clarifications issued by Bangladesh Bank will prevail.

For the first time, Bangladesh is preparing to borrow directly from investors around the world, aiming to raise up to $1 billion by December through a sovereign bond. It is a real milestone, but it comes at a price: the bond would likely cost about 8% a year in interest, roughly four times what the country pays the World Bank for its cheapest loans.

For Finance Minister Amir Khosru Mahmud Chowdhury, the bond is part of a bigger shift. At World Investor Week in Dhaka on 4 October, he announced that the government had ended its IMF loan programme because it found the conditions unacceptable. Bangladesh, he said, would no longer run its economy on money from the IMF, and would instead raise funds through bond and stock markets at home and abroad. The country needs around $50 billion a year, far more than development lenders can provide.

The argument has real force: development lenders attach politically painful conditions, and their money arrives slowly. The government also says it will be careful not to overpay.

The minister also deserves credit for taking Bangladesh's case directly to Wall Street. In late September he and Prime Minister Tarique Rahman met BlackRock, PIMCO, TPG, Macquarie, GoldenTree, and MetLife at a JP Morgan breakfast in New York, and JP Morgan has since been approved in principle as lead manager. Opening that door is the hard first step; keeping investors' confidence will depend on what follows at home.

"Compared with the World Bank's cheapest loans, the bond would cost roughly $60 million more a year, or about $300 million over five years, for every $1 billion borrowed"

The market may see things differently. Many investors treat an IMF programme as a seal of approval: proof that someone independent is checking the books. Without it, they are likely to ask for higher interest. Ending the programme may also affect some World Bank and ADB budget support tied to IMF reviews. And $1 billion covers only a small part of the $50 billion a year the minister says the country needs.

A bond is simply a loan that can be bought and sold. The government borrows from investors and promises to pay interest every year and repay the full amount on a fixed date.

If Bangladesh sells a five-year bond for $1 billion at 8%, it receives $1 billion today, pays $80 million in interest each year, and repays the whole $1 billion at the end of year five.

Until now, Bangladesh has borrowed abroad mainly from development lenders such as the World Bank, ADB, and Jica, whose cheap, long-term money comes tied to conditions and projects. Bond money comes from private investors, can be used more freely, and is priced by the market.

The interest rate has two parts.

Part one: the starting price of money. Investors measure every loan against US Treasury bonds, issued by the world's safest borrower. Five-year Treasuries now pay about 5%, up sharply from about 4.4% in August, which makes everyone's borrowing more expensive.

Part two: the extra charge for risk. Investors then add a premium for lending to Bangladesh instead of the US, much as a bank charges a new customer with a few warning signs more than one with a long, clean credit history.

Bangladesh looks like that new customer, for three reasons:

It has never issued a sovereign bond. There is no track record for investors to judge.
Its credit rating is low. The major agencies grade Bangladesh B+ or B2, below investment grade, and two warned this year that it could fall further.
It has warning signs at home. Its banks hold large bad loans, and ending the IMF programme removes a seal of approval many investors look for.
Together, these add roughly 3 percentage points. On top of the US rate of about 5%, Bangladesh is likely to pay about 8% a year, give or take half a point, and more likely at the higher end without an IMF programme.

Here is what it costs each year to borrow $1 billion from each source:

Lender

Interest rate

Yearly interest on $1 billion

When the money must be repaid

World Bank, cheapest window (IDA)

2.13%

about $21 million

Over 25 years, starting after 5 years

World Bank, standard window (IBRD)

about 4.5% to 5% (estimate)

about $48 million

Over many years, in instalments

Global bond (5-year bond)

about 8% (estimate)

about $80 million

All at once, at the end of 5 years

Compared with the World Bank's cheapest loans, the bond would cost roughly $60 million more a year, or about $300 million over five years, for every $1 billion borrowed.

The repayment schedule matters as much as the rate. A World Bank loan is paid off slowly over decades, like a home loan; a bond falls due in full on one day. If that day arrives when reserves are low or markets are nervous, refinancing can become very difficult. Bangladesh's foreign debt repayments are already at a record high and are expected to keep rising until about 2029.

Two loans approved on 7 October show these prices. For fuel and gas imports, the government is borrowing $3.1 billion from the International Islamic Trade Finance Corporation at about 5.4%, but only for six months at a time. The Asian Development Bank is lending $200 million for rural power lines around Dhaka at about 4.3% over 25 years. Even after leaving the IMF, Bangladesh still depends on such lenders.

Bangladesh could also borrow in Chinese yuan through a Panda bond in China, or in Japanese yen through a Samurai bond. With interest rates much lower in China and Japan, these look far cheaper at first glance.

A committee is already studying a Panda bond, and the central bank governor has backed a small first issue of about $50 million. Pakistan, rated lower than Bangladesh, borrowed about $250 million in yuan for three years at just 2.5% in May 2026, and the issue was five times oversubscribed.

There are two catches.

First, the low rate usually needs a guarantor. Pakistan's bond was backed by the ADB and the Asian Infrastructure Investment Bank. In Japan, investors generally lend to countries like Bangladesh only with a guarantee from a state bank such as JBIC, as with Côte d'Ivoire and Mexico. Without a guarantee, much of the saving disappears.

Second, currency risk. If the yuan or yen rises against the taka and the dollar, the debt becomes more expensive to repay. A currency swap can protect against this, but it costs money and pushes the real cost back up to roughly 5.5% to 6.5% in dollar terms (estimate).

Option

Headline rate

Needs a guarantor?

Real cost after currency protection (estimate)

US dollar bond

about 8%

No

about 8%

Panda bond (yuan)

about 2.5% to 3%

Usually, yes

about 5.5% to 6.5%

Samurai bond (yen)

about 2.7% to 3.3%

Yes, in practice

about 5.5% to 6.5%

So, Panda and Samurai bonds can genuinely lower costs, mainly because of the guarantee rather than the currency.

If the World Bank is so much cheaper, why issue a bond? Because it buys things the World Bank cannot provide.

A price tag for Bangladesh. A traded government bond sets a reference price, helping Bangladeshi banks and companies borrow abroad.
New lenders. Global pension funds, insurers and investment firms could lend to Bangladesh for the first time.
Preparing for life after cheap loans. Bangladesh is due to leave the UN's list of Least Developed Countries in November 2026, though it has asked for a delay until 2029 and a decision is pending. Either way, cheap development loans will shrink over time, and it is better to learn market borrowing while things are calm than in a crisis.
Discipline. A bond's price moves every day. If reforms stall, borrowing costs rise in public view.
What the bond should not be is a replacement for World Bank and ADB money. A low-rated country cannot swap about $4 billion a year of cheap, long-term loans for expensive, short-term market debt. Sri Lanka leaned heavily on market borrowing and defaulted in 2022.

The bond is worth doing if it is done carefully. Five rules would help keep the cost down:

Replace the IMF's seal of approval with its own. Investors will want other proof of good management: a published debt and reform plan, regular and honest economic data, and clear progress on the banks.
Start small. $500 million to $750 million is enough to set a price without taking on too much expensive debt.
Use the money wisely. Pay off more expensive debts or strengthen reserves, rather than fund day-to-day spending.
Seek guarantees for Panda and Samurai bonds. Small, guaranteed yuan and yen bonds can lower the average cost of borrowing.
Keep fixing the basics. The cheapest way to borrow is to become a safer borrower: collect more tax, clean up the banks and restore growth.
Done this way, Bangladesh's first global bond can open a door. Done in a hurry, it becomes an expensive way to borrow money the country could have had for less.

International Monetary Fund chief Kristalina Georgieva said today (17 October) this year's Annual Meetings with global policymakers were marked by "optimism and worry" about the global economic outlook as the event wound down in Bangkok.

Georgieva also said her organisation had a "responsibility" to help low-income countries struggling with price shocks stemming from the US-Israel war on Iran.

Meetings in the Thai capital this week brought together finance ministers, central bank chiefs and other top officials from around the world, with surging inflation, spiking bond yields and economic growth driven by artificial intelligence at the top of the agenda.

"(The meetings) were marked by both optimism and worry," said Georgieva, who was speaking at a press briefing alongside Saudi Finance Minister Mohammed al-Jadaan.

"Optimism from the resilience of the global economy, the promise of AI, the dynamism of Asia. But AI is also recognised to be a source of worry, and so are inflation, high levels of debt, wars, and climate risks."

All week, the IMF has warned that high levels of debt and rising bond yields in advanced economies are tightening financial conditions just as central banks need to focus on bringing inflation down, likely by increasing interest rates.

Global energy prices have spiked since late February, when the United States and Israel launched the war on Iran, with Tehran's retaliatory actions targeting Washington's Gulf allies and curtailing oil and gas supplies.

The price increases have rippled across the globe, fuelling inflation in economies across a range of income groups.

The most vulnerable to the shock, the IMF has said, are low-income oil-importing countries that are not exposed to the boom in AI investment that has propped up growth in many advanced economies.

"I can tell you that people everywhere, but especially in poorer countries, they don't like inflation. Inflation is like a tax on the poor," said Georgieva.

She said such countries needed to set spending targets such that they prioritised growth and protecting the most vulnerable people, adding that the Fund had a "relentless pursuit of more resources for low-income countries".

Higher global interest rates and bond yields, however, were driving up debt repayments for low-income countries, she said.

The share of debt repayments as a percentage of government revenue had gone up from eight to 14% for low-income countries in recent years, the IMF chief said.

She said her organisation had a responsibility to help countries to restructure debt if needed; to assist with domestic resource mobilisation; to bring in international finance; and to create conditions for private investment.

"When we do our best, it translates into better lives for people."

On the AI investment boom, Georgieva said that member countries had recognised its value in propping up growth, but "when we are dependent on one particular driver of growth, it is like we stand on one leg".

A key debate at this year's meetings has been on whether the technology's most advanced frontier models require regulation and guardrails.

The question has grown more urgent after recent revelations of security incidents involving autonomous AI agents.

Georgieva said she was "impressed" by the spirit of cooperation between AI companies, governments and other stakeholders that she witnessed in Bangkok on the issue.

The International Monetary Fund (IMF) has warned that low-income, energy-importing countries outside the artificial intelligence (AI) value chain are falling further behind, having been vulnerable to begin with.

Speaking at the closing press briefing of the IMF-World Bank Annual Meetings in Bangkok on October 17, IMF Managing Director Kristalina Georgieva said discussions were marked by both optimism and worry.

Mohammed Aljadaan, chair of the International Monetary and Financial Committee (IMFC) and Saudi Arabia's finance minister, said: “There is no room for complacency.”

Asked about calls for fiscal consolidation when poorer countries' needs are rising, Georgieva said the work starts at home: well-calibrated policies, fair revenue collection and spending that protects the most vulnerable and supports growth.

She added that the IMF does not see a need for dramatic adjustment in many low-income countries, crediting them with putting debt on a downward path.

Debt-to-GDP ratios are rising in rich countries and falling slightly in low-income ones, she said. Yet higher inflation and interest rates have pushed debt payments in low-income countries from 8 percent to 14 percent of revenue in recent years.

Georgieva said recent decisions on the IMF’s concessional lending vehicle, the Poverty Reduction and Growth Trust, allow the IMF to more than triple concessional lending compared with before the reform.

Ten partners—France, Germany, Ireland, Italy, Japan, Kazakhstan, Luxembourg, the Netherlands, Spain and Switzerland—committed over $100 million for capacity development.

Members also reaffirmed support for timelier, more predictable and coordinated debt restructuring, including through the G20 Common Framework.

Georgieva urged central banks to stay “laser-focused” on price stability, noting that inflation remains stubborn and rising interest rates are adding to debt-service pressure. “Inflation is like a tax on the poor.”

On AI, she said the boom is the main support for the global economy but also a risk because dependence on one growth driver is “like we stand on one leg.”

The IMF managing director said policymakers want guardrails to protect people and businesses.

She also said regulators should watch risks from rising leverage, non-bank financial institutions, cyberattacks and fraud, and noted that Thai authorities led members towards the Bangkok Blueprint, a step towards a framework for digital finance.

Georgieva cited the dynamism of Asia among the sources of optimism. She held up host Thailand, now integrated into the global AI supply chain, as proof that good policies and strong institutions can expand opportunities.

She named no South Asian country, but her description of energy-importing economies outside the AI value chain is one that many in the region will recognise.

Georgieva also congratulated Aljadaan on his one-year extension as IMFC chair.

On monetary policy, Aljadaan said central bank independence is essential to price stability and policy credibility. He said AI could widen economic disparities, especially in low-income countries and fragile states.

Brent touched $110 a barrel for the first time since May on Friday on worries that escalating tensions in the Middle East could further tighten supplies, while investors assessed how much diesel Russia could supply to the global market.

Brent crude futures settled $3.94, or 3.7 percent, higher at $109.86, the highest since May 19, while US West Texas Intermediate crude futures closed $3.44, or 3.5 percent, higher at $101.41, the highest since September 17.

So far this week, Brent has risen 4.9 percent and WTI 10.4 percent. “WTI and Brent reversed earlier losses as escalation fears resurfaced amid rumours of attacks on Saudi energy infrastructure,” research and consultancy Energy Aspects said in a note.

Israeli reports suggest Iran may be preparing a pre-emptive strike following unusual military movements detected by Western intelligence.

Although unverified, these developments reinforce our view that persistent escalation risks will keep flat prices supported,” Energy Aspects added. A Saudi-led coalition said it intercepted and destroyed a ballistic missile launched towards the Red Sea city of Yanbu.

The port is critical for Saudi Arabia’s efforts to bypass the Strait of Hormuz and keep oil flowing to international markets.

Initial reports indicated no damage to Yanbu’s infrastructure, consultants Rapidan Energy Group said.

Supply concerns also increased as attacks around the Strait of Hormuz surged over the past 10 days,

with Iran saying it was stepping up strikes in response to the US blockade of its ports and tougher sanctions introduced last month.

“Intensified Iranian attacks drove Gulf crude flows sharply lower,” Kpler analysts said in a report on Thursday, adding that they expected a slower and more uneven recovery in Hormuz flows in the absence of a comprehensive political deal.

Ukraine struck a Russian oil refinery on Thursday after President Volodymyr Zelenskiy declared that Kyiv was abandoning a ceasefire covering energy sites announced by US President Donald Trump and criticized Trump’s willingness to strike deals with Moscow.

Russia’s Ryazan oil refinery has suspended operations at a primary crude distillation unit following a drone attack in the region on Thursday, two industry sources told Reuters.

“Conflict in the Middle East still keeps coming back and I think it’s questionable how much diesel fuel Russia can actually deliver to the markets.”

“Those two factors are just continuing to have traders be buyers,” said Dennis Kissler, senior vice president of trading at BOK Financial.

To boost supply, the International Energy Agency agreed on Thursday to release more than 20 million barrels of fuel to the market.

The United States also issued a request for proposal for an exchange of up to 17 million barrels of crude oil from the nation’s Strategic Petroleum Reserve, the Department of Energy said on Friday.

Washington previously agreed to loan 172 million barrels of oil from the SPR as part of a wider deal with about 30 countries in the International Energy Agency to release 400 million barrels from reserves around the world.

Brent crude was little changed on Thursday, while WTI settled up more than 3 percent after news that the US was weighing plans to ease restrictions on the world’s shadow fleet of tankers and after a big US crude stock draw on hurricane production shut-ins.

Turnover at the Dhaka Stock Exchange (DSE) today (17 October) fell to its lowest level in more than nine months as trading activity weakened.

The day's turnover dropped 36% to Tk317 crore from the previous session, marking the lowest level since 29 December 2025.

Meanwhile, the benchmark DSEX index fell 0.35% to close at 5,433 points, while the blue-chip DS30 index dropped 0.29% to settle at 2,090 points.

Market breadth remained negative, with 229 issues declining, 96 advancing, and 61 remaining unchanged.

Most sectors posted negative returns, with mutual funds and jute recording the steepest corrections. Insurance and fuel and power were among the sectors that posted positive returns.

Evince Textile was the day's most traded stock, followed by Saiham Textile, Matin Spinning, and Sonali Aansh.

Bangladesh Building Systems topped the gainers' list, while Apex Footwear was the biggest loser.

State-owned submarine cable operator Bangladesh Submarine Cables Limited (BSCL) posted a 37.47% year-on-year rise in net profit for the FY2025-26, reaching Tk283 crore. The company's board has recommended a 47.50% cash dividend for shareholders.

The board approved the annual audited financial statements at a meeting on Thursday, according to a price sensitive information (PSI) disclosure.

Total revenue grew 25% to Tk496 crore, up from Tk396 crore in the previous fiscal year, the disclosure said.

The company attributed its top-line growth to increased demand across core business segments – including International Private Leased Circuit (IPLC) rent, IP transit services, and co-location services – supported by management initiatives and favourable government policies.

Its diluted earnings per share (EPS) stood at Tk13.61, up from Tk9.93 in the prior fiscal year, driven primarily by operational business growth alongside higher interest and other income, with no significant extraordinary transactions recorded during the period.

The record date for determining shareholder eligibility for the dividend has been set for 17 November, and the company will hold its annual general meeting (AGM) virtually on 20 December 2026. Following the dividend declaration, its share price rose 1.43% to Tk148.90.

Labour and Employment Secretary Md. Abdur Rahman Tarafder today (17 October) said that a wage board will be formed soon to determine new wages for the workers in the garment sector.

He said that the process of nominating representatives from both the workers and the employers for the wage board is underway.

Expressing the hope that a gazette notification could be published within this month, he said once the nominations are received from the respective parties, the Ministry will issue the gazette, following which the board will commence its operations.

The labour secretary made these remarks while talking to the state-run news agency, BSS.

He explained that the wage board will consist of a chairman, an independent member, a representative for the workers and a representative for the employers. Additionally, representatives specifically from the relevant industrial sector one from the workers and one from the employers will be included. In the case of the ready-made garment (RMG) industry, representatives from this specific sector will serve in the board.

The labour secretary noted that in determining wages for RMG workers, factors such as Bangladesh's overall economic situation, wage rates in neighboring countries and the ground-level realities within various factories will be taken into account.

The board will review these aspects before reaching a decision on wage levels; in other words, the Ministry will not unilaterally set the wage amount through administrative action, he added.

Abdur Rahman Tarafder further mentioned that the Department of Labour has already been instructed to initiate the formation of the wage board. The department has, in turn, requested both the workers' and employers' sides to nominate their respective representatives. Upon receiving these nominations, the Ministry will issue the official gazette.

Regarding the ongoing labour unrest, he said that the government maintains a positive stance toward the workers' demands and is engaged in regular dialogue with them. Labour leaders have also been kept informed about these developments.

The secretary added that the government has undertaken various initiatives to safeguard the workers' rights. Tripartite discussions involving representatives from the workers, employers and the government are going on now concerning the Labour Rules, with several meetings already held on the matter.

The labour secretary informed that a meeting of the National Tripartite Consultative Council (TCC) will be held on 27 October, chaired by the minister of Labour and Employment. The meeting will feature detailed discussions on the current labour situation including the formation of a wage board and the drafting of labour rules with participation from representatives of workers, employers and the relevant ministries.

He said, alongside addressing the demands of the workers, the government remains vigilant to ensure that no external vested interest groups can incite unrest in connection with the ongoing protests.

Bangladesh's foreign exchange reserves stood at US$36.39 billion, according to the latest data released by Bangladesh Bank (BB) on Saturday.

Reserves calculated under the IMF's BPM6 methodology stood at US$31.58 billion.

Bangladesh's GDP per capita surpassed India's in FY26 and is projected to remain higher for the next two fiscal years, but the International Monetary Fund (IMF) expects India to regain the lead in FY29 and widen the gap through FY31.

In its latest World Economic Outlook database, released on Tuesday, the IMF puts Bangladesh's GDP per capita in current US dollar at $2,886 in FY26, compared with $2,750 for India—a difference of just $136.

Despite having an economy roughly eight times larger, India is projected to stay behind Bangladesh until FY28. The forecast shows India's GDP per capita rising to $3,662 in FY29, surpassing Bangladesh's $3,334.

By FY31, the gap is expected to widen to around $709, with India's figure projected to reach $4,389 and Bangladesh's $3,680.

Bangladesh had previously maintained a higher GDP per capita than India for seven consecutive years from 2018, before India overtook it in 2025.

GDP per capita is calculated by dividing a country's total economic output by its population. It is commonly used to compare average economic output per person, although it does not directly measure how income is distributed or the cost of living.

India retains a lead in purchasing power

The picture changes when differences in living costs are taken into account.

India remains ahead of Bangladesh in GDP per capita measured at purchasing power parity (PPP), which adjusts for differences in the prices of goods and services between countries.

According to the IMF database, India's GDP per capita in PPP terms is projected at $12,998 in FY26, compared with $10,884 for Bangladesh, giving India a 19.4% advantage.

India has remained ahead on this measure every year since 1994, and the IMF expects it to retain that position through 2031, with the gap widening to around 45%.

Moreover, despite Bangladesh's projected lead in GDP per capita at current prices, India is expected to remain South Asia's fastest-growing economy over the forecast period.

Its GDP is projected to rise from $4.06 trillion in FY26 to $6.74 trillion in FY31, with annual growth forecast at 7.02% in FY27 and 6.81% in FY31.

Bangladesh, by contrast, is projected to record the region's slowest economic growth. Its annual growth rate is forecast to fall to 2.21% in FY28 before recovering to 2.97% by FY31.

The projections also place Bangladesh's ambition of becoming a $1 trillion economy by 2034 well above the IMF's current estimates. The Fund puts the country's GDP at $506.4 billion in FY26 and projects it to reach $674.4 billion by FY31.

Maldives leads in South Asia

Bangladesh also remains behind several other South Asian economies in GDP per capita.

The Maldives is projected to have the region's highest figure in FY26, at $19,507, followed by Sri Lanka at $5,062 and Bhutan at $4,933.

Pakistan's GDP per capita is estimated at $1,836, while Nepal is projected to have the region's lowest figure, at $1,540.

The asset value of state-owned Renwick Jajneswar & Company (BD) Ltd has surged by around 4,100% to Tk1,258 crore following a revaluation by independent chartered accounting firm Shafiq Basak & Co.

According to a disclosure posted on the Dhaka Stock Exchange (DSE) today (15 October), the carrying value of the company's assets increased from Tk29.96 crore to Tk1,258 crore, adding Tk1,228 crore to their value.

The company said the revaluation surplus would be reflected in its financial statements, subject to the auditor's review and applicable regulatory requirements.

However, the increase in the value of land, buildings and other assets will not generate any immediate cash inflow. As a result, the revaluation surplus may not directly affect the company's share price.

Following the declaration of asset revaluation information, Renwick Jajneswar's shares price declined by 5.22% to Tk842.70 each at the Dhaka Stock Exchange (DSE).

Before that, its shares price since 8 October until 14 October surged by 25.56% to Tk889.10 each.

At the mid of July, its shares trading was halted due to abnormal price hike and increase in volume of shares.

The 2025-26 fiscal year ended, the company yet to publish the annual financials.

Its latest first nine months financial showed that it had incurred a loss per share of Tk7.14 till March 2026.

The loss per share at the same time of the previous fiscal year was Tk15.61, meaning its loss significantly declined.

Regarding the improvement in profitability, it said EPS increased significantly compared to last year in the same period driven by mainly decreasing cost of goods sold and operating expense.

Shahjalal Islami Bank PLC posted a 21% year-on-year growth in consolidated earnings per share (EPS) to Tk1.23 in the July-September quarter of 2026, up from Tk1.02 in the same period last year.

According to a disclosure filed with the Dhaka Stock Exchange (DSE) today (15 October), the Shariah-compliant bank attributed the growth to higher net investment income and increased revenue from commission, exchange and brokerage services.

For the January-September period of 2026, the bank's consolidated EPS rose to Tk4.00 from Tk3.50 in the corresponding period of 2025.

The bank said improved yields on net investments, stronger income from capital market investments and higher fee-based revenue contributed to the growth in earnings during the nine-month period.

Operating cash flow saw a substantial surge, with Consolidated Net Operating Cash Flow per Share (NOCFPS) climbing to Tk36.61 for the January-September period, up from Tk22.97 in 2025.

The bank credited this increase primarily to higher cash collections from investment income and a steady inflow of customer deposits.

Meanwhile, Consolidated Net Asset Value (NAV) per share strengthened to Tk25.45 as of 30 September 2026, rising from Tk23.07 recorded on 31 December 2025.

Despite the positive financial results, Shahjalal Islami Bank's share price edged down 0.57% to close at Tk17.30 on the DSE today.

Indonesia's stock market is no longer worthy of "emerging market" status, MSCI said on Friday, laying ​out a plan to remove it from a suite of indexes tracked by funds, a shock move that sparked the steepest one-day drop in Jakarta shares since 1998.

Coming a month ahead ‌of a scheduled review, MSCI's change of tack stunned investors and irked Jakarta officials, with the Indonesian regulator unveiling sanctions against those linked to alleged trading manipulation in shares of three firms.

The benchmark stock index, already the world's worst performer this year, closed down 11.57%, in its biggest single-day drop since January 1998.

The rupiah currency slid as much as 0.8% to 18,070 a dollar, its weakest since late July, but recovered some ground.

Equities in Southeast Asia's biggest economy have struggled since a January freeze in the MSCI indexes, with a threatened downgrade ​to "frontier" status because of opacity in ownership and trading behaviour.
The market has lost more than $350 billion in capitalisation since, with about $60 billion wiped out on Friday alone.

MSCI cited, opens new tab insufficient reforms to tackle the problems and ​said even a downgrade to "frontier" status would not reflect the severity of the issues, but proposed instead to move further beyond that, to "standalone" status.

"Significant concerns remain around market ⁠dysfunction," MSCI said in a statement on Friday. "Accordingly, MSCI considers Indonesia's continued classification as an emerging market no longer appropriate."

The lower "standalone" status it proposed would exclude Indonesian stocks from global indexes tracked by billions of dollars in passive ​investment, forcing funds that follow, or are ranked against, the indexes, to sell.
UBS estimated such a move could trigger about $4 billion of passive outflows from Indonesia, with active investors potentially adding a further $15 billion in outflow.

Foreign investors have already ​net sold $4.7 billion worth of Indonesian stocks in 2026.

Indonesia's senior economic minister, Airlangga Hartarto, said there was "a big question mark" over why MSCI did not discuss the downgrade to "standalone" status during a meeting this week in the Thai capital of Bangkok.

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He made the comment ahead of a meeting of top officials, including the finance minister, the governor of the central bank and other related officials to discuss MSCI's announcement.

The Indonesia Stock Exchange said it had taken concrete steps to enhance transparency and integrity in the capital market, ​and CEO Jeffrey Hendrik said he would request further clarification on the basis of the announcement.

The move did not reflect the health of the vast majority of listed companies or indeed the Indonesian economy, said Angus Mackintosh, an ​ASEAN specialist at Aletheia Capital in Singapore, adding that "grouping Indonesia with Lebanon, Palestine, and Argentina does not make sense".

He added, "This is a wake-up call for Indonesia."

Indonesia would be the largest economy in the group if it was downgraded to "standalone" status.

MSCI SCRUTINY ‌RAISES MORE QUESTIONS

MSCI's ⁠announcement piles pressure on the government of President Prabowo Subianto.
It is the latest of a series of setbacks for Indonesia this year, with Moody's and Fitch cutting their sovereign rating outlooks to negative, citing reduced policymaking credibility.

"The proposal highlights MSCI's dissatisfaction with the pace of reforms and raises further questions about the investability of the market," said Tan Altundag, investment manager for emerging equities at Pictet Asset Management.

"The investment implications could be significant," said Altundag, who has no holdings in Indonesia.
The office of Finance Minister Suahasil Nazara, who chairs the financial stability board, did not reply to a request for comment.

In a sign of investor anxiety over the index provider's move, there was a rush for the exits when ​the market opened, triggering a 30-minute trading halt on ​the Jakarta exchange.

"It's the first time this has ⁠ever happened in my 20 years in the stock market," said Liza Camelia Suryanata, head of research at stockbroker Kiwoom Sekuritas Indonesia, referring to the chaotic opening minutes.

MSCI's move seemed heavy-handed, given Indonesia's efforts to tackle issues around market transparency and increase the free-float requirement for listed firms, Mackintosh added.

"The only way for Indonesia to remedy this situation would ​be to impose severe sanctions and fines on those involved in concerted share manipulation," he said.

After the MSCI move, Indonesia's Financial Services Authority (OJK) disclosed fines of millions ​of dollars for market participants ⁠involved in trading violations concerning three listed firms - Dian Swastatika Sentosa, Barito Renewables Energy and Petrindo Jaya Kreasi.

Investors allegedly conducted "planned and structured" price manipulation of Dian Swastatika's shares, said Hasan Fawzi, an official of the regulator.

Shares offered in the IPOs of Barito Renewables and Petrindo were allegedly intended from the outset for parties linked to the controlling shareholder, leading to concentrated ownership.

The companies did not immediately respond to Reuters emails seeking comment.

DOWNGRADE PLANNED FOR MID-2027

MSCI said it would run a consultation with ⁠market participants for ​a downgrade to "standalone" status until April 2027 and then proceed with reclassification unless it finds clear evidence of improvement in market governance ​and function.

Standalone markets are not included in MSCI's emerging or frontier index products, which are tracked by passive funds and treated as performance benchmarks for other fund managers.

MSCI says reclassification to standalone status may occur in the case of severe deterioration in market accessibility or size and ​liquidity, with Argentina the most recent example.

Bangladesh is seeking a $4.5 billion loan from the International Monetary Fund (IMF) in quarterly instalments from December this year through December 2029, with an agreement expected by year-end, a Bangladesh delegation official said.

The loan amount and conditions are expected to be finalised during staff-level negotiations after an IMF mission visits Bangladesh later this month, the official told The Business Standard on condition of anonymity.

Senior officials of the Bangladesh delegation accompanying Finance Minister Amir Khosru Mahmud Chowdhury expressed optimism about the timeline following what they described as "fruitful discussions" with IMF Deputy Managing Director Nigel Clarke in Bangkok, Thailand yesterday, on the sidelines of the 2026 IMF-World Bank Group Annual Meetings.

Prime Minister's Economic Affairs Adviser Rashed Al Mahmud Titumir did not directly confirm the proposed loan amount or number of instalments, saying these would be determined during staff-level negotiations and at an IMF board meeting.

He said Bangladesh must implement its reform initiatives by 2029, ahead of the 2030 national election, when the government would have to seek a public mandate.

Finance Minister Amir Khosru also said the new IMF programme would come with conditions that Bangladesh would have to fulfil, although some issues could be resolved through discussions and mutual agreement.

Speaking to reporters after meeting Clarke in Bangkok yesterday, he said discussions on the proposed programme were progressing positively. Further talks would determine the conditions and how they would be met, he added.

Revenue mobilisation, banking reforms in focus

The IMF is prioritising increased revenue mobilisation and financial sector reforms in discussions on the proposed loan, which could range from $4.5 billion to $5 billion, according to Sonali Jain-Chandra, deputy director of the IMF's Asia and Pacific Department.

At a press conference on the Asia-Pacific region yesterday, Jain-Chandra said Bangladesh's revenue-to-GDP ratio had fallen to 7%, placing it among the lowest in the world.

She said higher revenue collection was necessary to restore financial sector stability and finance development activities. The IMF also stressed the need for strategic measures to address major problems in the banking sector, maintain a contractionary monetary policy until high inflation comes under control, and implement reforms on schedule.

Khosru said the IMF had raised concerns about the banking sector, the tax-to-GDP ratio, bank recapitalisation and macroeconomic stability. Bangladesh agreed with the IMF's observations on these issues, and many had already been addressed, he added.

He also said the IMF is satisfied with Bangladesh's recent economic progress following the budget, despite global challenges, including the war in the Middle East.

NPL ratio rises to around 33%

Bangladesh presented plans for banking sector reforms during the discussions, including measures to restore depositor confidence and reduce non-performing loans (NPLs), a Bangladesh Bank delegation official said.

Depositors of troubled Sammilito Islami Bank are already receiving repayments, while National Bank began returning deposits yesterday as the government seeks to rebuild confidence in distressed banks through regular repayments.

The delegation is also preparing a strategy to reduce bad loans across the banking sector.

Under an IMF loan agreement signed in 2023 during the Awami League government, Bangladesh committed to reducing the NPL ratio to 10% by 2026. Instead, the ratio has climbed to around 33%.

The target for NPL reduction under the proposed new programme has yet to be determined, the official said.

The 2026 IMF-World Bank Group Annual Meetings began in Bangkok on 12 October and will continue until 18 October, bringing together finance ministers, central bank governors, policymakers and representatives of development partner organisations.

Electric vehicle (EV) demand is rising in Bangladesh, but limited charging infrastructure, high investment costs and gaps in after-sales services and battery recycling are holding back wider adoption.

EV sales started gaining momentum in 2025, although vehicle registration started in September 2022, according to officials at the Bangladesh Road Transport Authority (BRTA).

BYD Bangladesh, a major player in the country's new-energy vehicle (NEV) market, has delivered more than 1,400 vehicles, including electric and plug-in hybrid models, and operates seven flagship showrooms.

The company sold around 500 NEVs in 2025, averaging about 42 units a month, while average monthly sales rose to around 160 in 2026, nearly four times the previous year's rate, according to Amid Sakif Khan, managing director of BYD Bangladesh.

Sakif said demand has expanded beyond early adopters to families, businesses and corporate customers, driven by lower operating costs and environmental awareness.

Mohammad Saiful Islam Tushar, marketing lead at DHS Autos, the exclusive distributor of Changan Automobile's Deepal electric and plug-in hybrid vehicles, said customer enquiries have shifted from basic questions about charging, battery performance and driving outside Dhaka to concerns about running costs, warranties, after-sales service and resale value.

Deepal does not disclose sales figures, but Tushar said enquiries, test drives and customer acceptance are increasing. "Consumer confidence remains the biggest barrier, alongside vehicle prices, financing, taxation, charging access, battery life and resale prospects."

Apartment dwellers can face restrictions on installing chargers and difficulties securing electrical connections, while motorists travelling on highways need reliable charging facilities along their routes, he said.

Investment remains risky

Bangladesh's charging network is expanding, but the relatively small EV fleet is making it difficult for operators to generate enough business to justify the high upfront investment.

Sakif said around 30 public charging stations equipped to charge BYD vehicles have been established across the country.

CrackPlatoon Charging Solutions operates 32 public charging units, 241 private units and 335 residential installations, mainly in Dhaka and Chattogram, with additional coverage in Cumilla, Narayanganj and Gazipur.

The company recorded 1,972 charging sessions, consuming 33.73 megawatt-hours of electricity, in 2026, compared with 461 sessions and 11.88 megawatt-hours in 2025. Average daily sessions increased to three for direct-current (DC) chargers and 0.57 for alternating-current (AC) chargers, from 0.8 and 0.23, respectively.

Despite the increase, utilisation remains low. A 120kW DC charger in Cumilla recorded a usage ratio of 1.203% in 2026, up from 0.300% in 2025.

Engr Abu Mosaeb Khan, head of operations at CrackPlatoon, said a typical 120kW public charging station costs around Tk70 lakh, with commercial payback generally taking five to seven years or longer.

The payback period could fall below two years if utilisation reached 30%-50%, he said.

Around 70% of a station's investment may go towards substations, grid connections, cabling and other electrical infrastructure, he added. Demand charges and regulatory clearances further increase costs, making operators cautious about expanding before demand grows sufficiently.

Ekhon Charge's Tejgaon station served three to four vehicles a day in 2026, compared with four to five a week in 2025, according to Safi Ar Rahman, the company's EV activation executive.

Most users are plug-in hybrid vehicles, including the BYD Sealion 6, Chery Tiggo 8 Pro and Omoda C9, as well as BMW and Mercedes models.

Ekhon Charge operates four charging points in Tejgaon, Cumilla, Chattogram and Cox's Bazar. Safi said the government's 0% tax policy on imported EV chargers should help reduce equipment costs.

The company plans to extend its network to Panchagarh, Khulna and Sylhet and aims to achieve nationwide coverage within 1.5 to two years using chargers rated at 120kW to 180kW.

After-sales services struggle to keep pace

The expansion of charging infrastructure is only one part of the challenge, as EV owners also need technicians trained to handle high-voltage systems, battery management and software-driven components.

Sakif said BYD had five service centres and two spare-parts dealer partners. The company plans to add more service points and roadside technicians while expanding training in high-voltage systems, diagnostics and batteries, alongside nationwide spare-parts distribution.

Deepal is also building its technical capacity. Tushar said technicians need expertise in high-voltage systems, battery management, charging, electronics, software diagnostics and safety. The company is continuing training and developing its spare-parts and diagnostic capabilities.

Abu Sufiyan Arnab, a BYD Atto 3 owner, said spare parts are readily available through the official distributor and he had not experienced major mechanical problems.

However, he is concerned about access to servicing in district towns, while EV spare parts are more expensive than those for conventional vehicles.

Battery recycling remains a major gap

Battery durability and disposal are expected to become increasingly important as the country's EV fleet ages.

Sakif said BYD provides an eight-year battery warranty and estimates battery life at 12-14 years. Its battery management system monitors performance, while authorised service centres can assess battery health.

Deepal also offers an eight-year battery warranty. Tushar said its modular battery design allows individual sections to be diagnosed and, where appropriate, repaired or replaced without replacing the entire battery pack.

However, Bangladesh has no comprehensive system for collecting, reusing and recycling end-of-life EV batteries.

Sakif said developing such a system will require cooperation among manufacturers, distributors, recyclers and government agencies. No specific investment or timeline has been announced.

Arnab said the potential cost of battery replacement after eight to 10 years, alongside the shortage of public charging facilities, remained among his biggest concerns.

Automakers eye localisation and long-term growth

Despite the infrastructure gaps, companies are preparing for a larger market.

Sakif said BYD is discussing plans for an assembly and manufacturing plant in Bangladesh, although no timeline has been announced. The company aims to become the market leader within three to five years, offering vehicles across affordable and luxury segments and expanding its after-sales network nationwide.

Deepal is also interested in localising production, but Tushar said investment would depend on market size, government policy, taxation, infrastructure, foreign exchange conditions and the availability of a reliable local supplier base.

Both companies say wider adoption will require more than vehicle sales. Tushar identified home and highway charging, trained technicians, after-sales services, financing, insurance, consumer education and long-term policy support as key requirements.

Sakif called for policies covering public charging, electricity supply to charging stations, battery recycling, smart-city development and greater use of electrified vehicles in commercial and public transport.

Lower running costs offer a strong incentive

For existing owners, lower running costs provide a major incentive to switch to electric vehicles.

Arnab, who drives around 50km a day, said he spends about Tk1,400 on electricity to run his EV for seven days, compared with around Tk900 a day when he used a fuel-powered vehicle.

However, public charging facilities remain extremely limited outside Dhaka, creating anxiety about long-distance journeys.

With demand for electric and plug-in hybrid vehicles rising, Bangladesh remains in the early stages of building the infrastructure and support services needed for mass adoption. Charging utilisation remains low, while much of the ecosystem is concentrated in major cities.

As Tushar noted, wider EV adoption depends not simply on bringing more vehicles into the country, but on developing the entire ownership ecosystem alongside them.