Commerce Minister Khandakar Abdul Muktadir today sought the Netherlands’ support in advancing negotiations for a proposed free trade agreement (FTA) with the European Union (EU) and expanding Bangladesh’s trade benefits in the European market after its graduation from the least developed country (LDC) category.

The minister sought the cooperation at a meeting with Sjoerd Sjoerdsma, the Netherlands’ minister of foreign trade and development cooperation, held at the commerce ministry in Dhaka.

Muktadir emphasised the importance of taking bilateral economic relations to a new level by leveraging Dutch technology and investment in agriculture, the jute industry, energy, ports and water management, according to a statement from the commerce ministry.

Highlighting the importance of maintaining Bangladesh’s export competitiveness in the post-LDC era, he said Europe is one of Bangladesh’s most important export markets.

The minister stressed the importance of advancing technical discussions on the proposed FTA with the EU and removing non-tariff barriers.

He particularly noted the potential for joint initiatives to improve the quality and productivity of potatoes and other vegetables, produce export-oriented agricultural goods that meet international standards, and develop new markets.

Regarding cooperation in the jute industry, Muktadir said growing global demand for environment-friendly products was creating new market opportunities for Bangladesh’s jute and jute-based goods.

He noted that Dutch technological assistance could play an important role in developing improved jute seeds, increasing productivity, establishing joint research laboratories and producing diversified jute products.

In particular, he highlighted the potential for adding greater value to the jute industry through environment-friendly packaging and the production of blended-fibre fabrics.

The Dutch minister expressed interest in expanding investment in promising sectors and strengthening existing economic ties with Bangladesh.

He emphasised the importance of drawing on Dutch expertise in agricultural technology, food processing, industrial modernisation, maritime transport and water management.

In the areas of port management and maritime transport, the discussions focused on developing Bangladesh’s port infrastructure, including the Laldia Terminal, establishing modern logistics systems, and exploring potential investment and technological participation by Dutch companies, the statement said.

Oil prices fell on Tuesday and were on track for their first decline in nearly a week, as traders assessed supply risks from attacks on Saudi Arabia while weighing the prospect of additional diesel supplies from Russia.

Brent crude futures fell $1.30, or 1.2 percent, to $105.35 a barrel by 0329 GMT, while US West Texas Intermediate crude futures were down $1.25, or 1.3 percent, at $92.49 a barrel.

Both benchmarks climbed nearly $2 a barrel in the previous session, with Brent settling at its highest since September 15.

US President Donald Trump said Russia had agreed to supply diesel to global markets, and his administration temporarily lifted US sanctions on Russian fuel designed to deprive Moscow of revenue for its war on Ukraine.

Additional supplies could help alleviate tightness in global fuel markets, tempering some of the supply concerns that have supported crude prices recently.

However, "there is considerable scepticism over the Russia-Ukraine energy ceasefire, particularly with reports that Russia has hit Ukrainian energy targets since Trump announced it," ING analysts said in a note.

Lawmakers from both parties in the US complained Trump's agreement with Putin appears to violate US law barring imports of Russian energy until Moscow ends its aggression against Ukraine.

Concerns over the vulnerability of Gulf energy infrastructure and shipping lanes remained in focus after Iran-aligned Houthis struck Riyadh's international airport over the weekend, while tanker attacks were reported near the Strait of Hormuz.

The incidents threatened to derail a recovery in Middle East supplies seen in September, and have reinforced fears of further disruptions along one of the world's most important energy transit routes.

"Fresh diesel supply from Russia and steadier Saudi flows are offering some relief, yet the market still looks more worried about the risk of further hits to ships or pipelines in the Gulf than it is reassured by extra barrels," said Tim Waterer, chief analyst at KCM Trade.

"Until we see clearer signs of de-escalation, the path of least resistance still leans higher," he said.

Ministers of OPEC and non-OPEC Participating Countries in the Declaration of Cooperation said shipping and insurance costs have surged to unprecedented levels of over one-third of the commodity value, impeding efficient movement of crude oil and products.

OPEC has revised down its oil demand growth forecast for this year to 400,000 barrels per day from 1.4 million bpd at the start of the year, in line with developments throughout the year, Haitham Al Ghais, Secretary General of the organisation said on Monday.

US payments firm Visa has received approval from China's central bank to begin preparations for a domestic bank card clearing institution in the country, ending years of waiting to tap into one of the world's largest payment markets.

The move marks a major step for Visa to join rivals American Express and Mastercard in operating bank card clearing services in China and represents a further opening up of the nation's tightly controlled financial sector.

The People's Bank of China (PBOC) issued an administrative approval to Visa Information Technology (Beijing) Co Ltd permitting it to begin preparatory work, according to the central bank's website.

Visa Information Technology (Beijing) is a foreign-invested enterprise established in China by Visa.

"The approval of our Application to Prepare marks a significant step forward in Visa's long-standing commitment to China," Visa CEO Ryan McInerney said in a statement on Tuesday.

The approval comes after US President Donald Trump's summit with Chinese leader Xi Jinping earlier this year in China, which included more than a dozen CEOs of top US companies, including those of Mastercard and Visa.

"We greatly appreciate the important role of the leaders of the United States and China in pursuing a constructive and strategically stable relationship between the world's largest economies," McInerney said.

Visa must complete its preparations within one year, after which it can apply to open for business, the PBOC said.

The central bank, together with the nation's top banking regulator, will review the application and, if it approves, issue a bank card clearing business license.

A GOODWILL GESTURE?

Visa was hoping to break into the Chinese market, which is dominated by state-controlled China UnionPay, with an unprecedented 100 percent ownership stake in a future joint venture license, sources have told Reuters.

"This should be viewed as a goodwill gesture from Beijing towards Washington ahead of the next meeting between Presidents Xi Jinping and Donald Trump," said George Chen, partner and chair of digital practice at The Asia Group.

The two are expected to meet again on the sidelines of the APEC Economic Leaders' Meeting in Shenzhen in November.

Greater market access in financial services has long been a priority for Washington, which has consistently urged Beijing to provide a more open and level playing field for foreign firms operating in China's financial sector, said Chen.

Mastercard, partnering with local clearinghouse NetsUnion Clearing Corp, won approval to prepare to set up its bank card clearing business in China in 2020.

American Express' joint venture in the country was cleared to start bank card clearing services later that year.

In China, bank cards processed 4.6 trillion transactions worth 963.60 trillion yuan ($143.92 trillion) in 2025, according to data from the central bank, highlighting the market's enormous potential.

Dhaka Electric Supply Company (Desco) returned to profitability in FY2025-26 after three years of losses, which had been exacerbated by currency volatility and foreign exchange losses.

The state-owned power distributor posted a profit of Tk40.15 crore, with earnings per share of Tk1.01, driven by higher revenue and gains from foreign currency movements, according to a disclosure published on the stock exchanges today (13 October).

The company also recommended a 5% cash dividend for shareholders for FY26, after skipping dividend payments for two consecutive years due to heavy losses.

Under the recommendation, shareholders will receive Tk0.50 for each share held, with the total dividend payout amounting to Tk6.42 crore.

This marks a major turnaround for the power distributor, which had incurred a heavy loss of Tk125 crore in FY25.

Following the declaration of dividend and annual corporate declaration, Desco's share price declined by 6.75% to Tk23.50 each at the Dhaka Stock Exchange.

In the three years, it had incurred a total Tk1,172 crore losses since FY2022-23 to FY2024-25.

Due to the losses, it had skipped dividend payouts for FY24-25, according to its financial statements.

According to disclosure, Desco managed to break its three-year streak of losses due to several positive operational and financial developments.

It said, this positive result was mainly attributed to higher yields from increased sales revenue by enhancing operational activities, interest income and a positive swing in foreign exchange operations, shifting from a foreign currency exchange loss in the prior period to a foreign exchange gain.

It previously faced blow due to heavy loss for foreign currency fluctuation for paying its foreign debts.

The net operating cash flow per share stood at Tk17.99, and the net asset value per share at Tk39.23, which was Tk15.93 and Tk35.33 respectively for the previous fiscal year.

On the capital market front, Desco's current market capitalisation stands atTk1,001 crore.

In a previous disclosure, it said the company received consent from the Bangladesh Securities and Exchange Commission for issuance of 4.59 crore Irredeemable Non-Cumulative Preference Shares of Tk10 each amounting total Tk45.90 crore. The shares to be issued in favour of the Government of Bangladesh, represented by the Secretary, Power Division, Ministry of Power, Energy and Mineral Resources, against share money deposits.

The state-owned Infrastructure Development Company Limited (IDCOL) is financing Walton Hi-Tech Industries' 50-megawatt (MW) captive solar power project, marking one of the largest rooftop and floating solar investments by a private manufacturer in the country.

IDCOL will provide Tk 1.44 billion in total for the project, of which Tk 440 million has already been disbursed, IDCOL acting managing director Monirul Islam told energy reporters at Walton's complex in Chandra, Gazipur on Monday.

Walton has so far installed 32 MW from solar — covering factory roofs, walkways and a 1.25 MW floating plant on a factory pond — with support from IDCOL, Monirul said.

The electronics giant consumes around 35 MW a day. It plans to add another 18 MW by December this year, taking total green generation to 50 MW.

"We are working to meet our entire daytime load from green sources," Walton Additional Managing Director Md Nazrul Islam Sarker said during the site visit, organised by the Forum for Energy Reporters Bangladesh (FERB) in collaboration with IDCOL.Buy Maps

IDCOL has been a key financier of renewable energy since 2002, starting with its nationwide Solar Home System programme, and is now focusing on industrial rooftop and floating solar to help meet the government's renewable energy targets.

The government has recently cut import duties and offered incentives for solar equipment as Bangladesh looks to diversify its fuel mix, improve energy efficiency and cut carbon emissions amid rising industrial power costs.

Walton said the solar shift is expected to significantly reduce its grid dependence and energy bill, while advancing its green factory compliance for export.

Once completed, the 50 MW plant will be among the largest captive renewable projects by a single industrial group in Bangladesh, officials said.

The Bangladesh Securities and Exchange Commission (BSEC) has decided to enforce strict legal action against listed companies failing to deposit declared final cash dividends into separate bank accounts prior to their Annual General Meetings (AGMs).

The decision was made during the regulator's commission meeting, presided over by BSEC Chairman Masud Khan, today (13 October).

Under existing regulatory directives, listed companies proposing an annual cash dividend must transfer the entire declared sum into a dedicated, separate dividend bank account at least one day before their AGM.

Companies are also required to obtain a bank certificate validating the deposit, which must be certified by the managing director, chief financial officer, and company secretary, before submitting it to stock exchanges and presenting it to shareholders at the AGM.

Observing recent non-compliance with these rules, the BSEC resolved to take punitive measures against defaulting companies under applicable securities laws.

Furthermore, BSEC decided to amend the existing directive to explicitly mandate that no dividend proposal can be presented at an AGM without first depositing the full amount into a separate account and securing the requisite bank certificate.

In a parallel move to simplify administrative procedures in line with the Corporate Governance Code, 2018, the capital market watchdog streamlined the appointment and reappointment framework for independent directors.

The commission decided that approval for the reappointment of existing independent directors will now be granted upon receiving an updated clean Credit Information Bureau (CIB) report from Bangladesh Bank.

Additionally, if an independent director was previously granted an exemption or relaxation regarding qualification and experience criteria under the conditions of the Corporate Governance Code, that waiver will now automatically apply to new appointments in other listed firms or reappointments in the same company, eliminating the need to seek fresh approval.

The Chittagong Stock Exchange has decided to issue 30 new Trading Right Entitlement Certificates (TRECs) to eligible domestic and foreign corporate entities to expand its commercial operations and broaden market participation.

The port city bourse currently has 153 TREC holders. The move is part of its broader business expansion plan, particularly as it prepares to operationalise the country's first commodity exchange, for which it received a licence from the Bangladesh Securities and Exchange Commission (Bsec) on 19 March 2024.

According to an official notice, interested applicants, including large conglomerates, foreign institutions and commodity value chain participants, must submit applications in sealed envelopes to the bourse offices in Chattogram or Dhaka by 4pm on 15 November.
A non-refundable application fee of Tk1 lakh must be paid through a pay order or demand draft.

The issuance will comply with the Exchanges Demutualization Act, 2013 and the bourse's demutualisation scheme.

Under the eligibility criteria, locally owned companies must have a minimum paid-up capital of Tk5 crore. The requirement rises to Tk8 crore for companies jointly owned by local and foreign shareholders and Tk10 crore for wholly foreign-owned entities.

Applicants must also maintain an audited net worth of at least 75% of their paid-up capital at all times.

Selected firms will be required to maintain security deposits of Tk3 crore for local entities, Tk4 crore for joint ventures and Tk5 crore for foreign-owned companies.

The exchange has barred loan defaulters, convicted individuals and firms whose directors have previously been expelled by any stock exchange. Applicants seeking to operate Shariah-compliant businesses must maintain a dedicated Shariah board and appoint a qualified adviser.

The expansion drive comes as the Chattogram bourse faces mounting operating losses and declining profitability amid subdued trading activity.

The exchange's operating loss widened 13.54% year-on-year to Tk16.58 crore in FY26, up from Tk14.60 crore in FY25, while net profit after tax fell 28.35% to Tk20.59 crore from Tk28.74 crore.

Consequently, earnings per share declined to Tk0.32 from Tk0.45, according to disclosures approved by the board on 8 October.

An official said the exchange remained profitable mainly because of interest income from fixed deposit receipts held with different banks. However, a shortage of listed products and low trading turnover continued to drive operating losses.

Despite the decline in net profit, the board recommended a 3.25% cash dividend for the fiscal year ended 30 June 2026.

The recommendation is subject to shareholders' approval at the annual general meeting, scheduled for 10 December at the conference hall of the Chittagong Stock Exchange Building in Agrabad, Chattogram. The record date for dividend entitlement is 8 November.

Bangladesh Jewellers Association (Bajus) has reduced gold prices in the domestic market, cutting the price of 22-carat gold by Tk3,266 per bhori to Tk2,28,031.

The new prices took effect from 10am today (13 October). Bajus said the adjustment followed a fall in the price of pure (tejabi) gold in the local market.

The decision was taken at a meeting of the association's Standing Committee on Pricing and Price Monitoring.

Under the revised rates, 21-carat gold will sell at Tk2,17,767 per bhori, down Tk3,149. The price of 18-carat gold has been cut by Tk2,683 to Tk1,87,032, while gold of the traditional method will cost Tk1,52,798 per bhori, down Tk2,158.

Bajus last raised gold prices on 9 October, when the price of 22-carat gold went up by Tk2,216 to Tk2,31,297 per bhori. The latest reduction comes just four days later.

In that earlier adjustment, 21-carat gold was priced at Tk2,20,916 per bhori, 18-carat at Tk189,715, and traditional-method gold at Tk1,54,956.

Bajus has also lowered silver ornament prices. A bhori of 22-carat silver will now cost Tk4,199, down Tk117.

The price of 21-carat silver has been cut by Tk175 to Tk4,966 per bhori, and 18-carat silver by Tk117 to Tk3,441. Silver of the traditional method is now Tk2,624 per bhori, down Tk59.

Lub-rref (Bangladesh) PLC has received regulatory approval to use its unutilised initial public offering (IPO) proceeds to meet working capital needs as the listed lubricant manufacturer grapples with mounting losses, a liquidity crunch and production constraints.

The Bangladesh Securities and Exchange Commission (BSEC) approved the proposal last week, a commission official told The Business Standard on condition of anonymity. The company must return the funds to its IPO account within one year.

The approval allows Lub-rref to redirect around Tk20 crore, originally earmarked for machinery purchases, project expansion and loan repayment, to settle outstanding liabilities and support day-to-day operations.

The company's financial position remains under pressure. It incurred a net loss of Tk32.27 crore in the July-March period of FY26, with a loss per share of Tk2.22 against revenue of Tk27.11 crore.

Its shares closed at Tk12.40 on the Dhaka Stock Exchange today (13 October).

The approval could offer temporary relief by easing immediate cash-flow pressures. However, persistent losses and previous production constraints raise questions about whether the funds will be enough to restore normal operations and improve financial performance.

IPO funds remain idle after promised loan fails to materialise

Lub-rref raised Tk150 crore through an IPO in 2021. A portion of the proceeds remained unused after the company failed to secure a syndicated loan promised by Social Islami Bank PLC for the balancing, modernisation, rehabilitation and expansion (BMRE) of its project.

The unused funds are currently held in a short notice deposit (SND) account at the bank's Agrabad branch in Chattogram, generating only nominal returns, according to the company.

Lub-rref attributed the erosion of its working capital to the Covid-19 pandemic, the Russia-Ukraine war and political instability in Bangladesh in 2024. It said these disruptions weakened its financial capacity, making it difficult to sustain operations and meet financial obligations.

Under the revised utilisation plan, the company will use $364,811 of the proceeds to settle outstanding liabilities against letters of credit (LCs), equivalent to approximately Tk4.56 crore at an exchange rate of Tk125 per dollar.

Another Tk4.33 crore will be used as a down payment to reschedule long- and short-term loans under Bangladesh Bank's Banking Regulation and Policy Department (BRPD) Circular No 7. The remaining funds will be available for working capital after these payments.

The company's board approved the revised plan at its 187th meeting on 9 June, and the proposal was subsequently placed before shareholders at an extraordinary general meeting on 9 July.

According to the company's disclosures, 51% of shareholders, excluding sponsors and directors, approved the proposal.

The company said the initiative was taken in the interests of general shareholders, while the BSEC also considered the interests of ordinary investors in reaching its decision.

Production constraints and mounting losses

Lub-rref manufactures and refines lubricants under its BNO brand. Its expansion plans at Julda, beside the Karnaphuli River, included a base oil refinery, tank terminal, jetty, hydrogen plant and specialised bitumen plant.

However, dollar shortages, difficulties importing raw materials, global economic disruptions and delays in bank loan disbursements put pressure on project implementation and production.

In May 2024, the company sought permission to use Tk56 crore of its then-unutilised IPO proceeds as working capital. At the time, its chief financial officer said the company was operating at just 30%–40% of its normal production capacity.

Its financial performance subsequently deteriorated, with losses reaching Tk66 crore in FY2024-25. The latest nine-month loss indicates that the company continues to struggle to revive operations and recover revenue.

Kabir Hossain, company secretary of Lub-rref, did not respond to requests for comment on the company's current business and financial conditions.

The latest approval may help the company settle overdue liabilities, secure working capital and meet immediate financial obligations. However, it does not resolve the underlying challenges of restoring production, boosting revenue and returning to profitability.

Lub-rref must also replenish the IPO account within one year, making the effective use of the funds crucial. Its ability to revive operations and generate sufficient cash flow will be key to meeting this obligation while addressing its ongoing financial difficulties.

Bangladesh is heading for a possible 16-year high in inflation, with the International Monetary Fund (IMF) today (13 October) projecting it to reach 10.9% in the current FY27 fiscal year, a sharp reversal from the 6% forecast it made just six months ago.

Bangladesh last recorded a similar annual average in FY2010-11, when inflation reached 10.92%, according to Bangladesh Bureau of Statistics (BBS) data.

More recently, inflation surged amid global price pressures following Russia's invasion of Ukraine, with the annual average reaching 10.03% in FY25.

Inflation subsequently moderated, with average headline inflation falling to 8.7% in FY26, but remained high.

The easing continued into the new fiscal year, with monthly inflation slipping from 8.32% in July to 8.26% in August before rising again to 8.34% in September, BBS data show.

The IMF's latest World Economic Outlook, released today, said, "Global inflation is expected to pause its steady decline, primarily because of the war-induced negative supply shock."

Global headline inflation is projected to rise notably to 4.7% in 2026 from 4.1% last year and will ease to 4.1% in 2027.

"Energy-importing economies outside the technology value chain face the most difficult outlook," it added in its outlook released as global economic and finance leaders gather in Bangkok for the IMF and World Bank annual meetings.

Against this backdrop, the IMF's 10.9% projection for Bangladesh is higher than forecasts issued by other international lenders.

In its September Asian Development Outlook, the Asian Development Bank (ADB) raised its forecast for 12-month average inflation in FY27 to 9%, from 8.8% projected in July.

The ADB attributed the expected increase to the lagged effects of a stronger El Niño event, persistent supply-side price pressures from energy shortages, higher production and transport costs, as well as possible shipping disruptions.

A gradual shift towards less restrictive monetary policy and expanded liquidity support could add to the pressure, the Manila-based lender said.

The World Bank, meanwhile, projected in its October 2026 Bangladesh Development Update that inflation will remain elevated at 8.6% in FY27.

It cited recent increases in domestic energy prices, persistent supply-side constraints, expansionary fiscal policy and a shift towards a less contractionary monetary policy stance.

The share of non-cotton garments in Bangladesh’s total garment exports rose to 30.7 percent in the January-September period of 2026, thanks to rising demand from international clothing retailers and brands, according to data from the Export Promotion Bureau.

Total garment exports from Bangladesh stood at $29.91 billion in the nine months to September this year.

Cotton garments accounted for $20.75 billion, or 69.3 percent, while non-cotton garment exports amounted to $9.17 billion, or 30.7 percent, according to the data.

The share of non-cotton garments rose throughout the year. The monthly average was 28 percent in January and February, surpassed 30 percent for the first time in June, reaching 31.6 percent, and peaked at 34.6 percent in August before falling to 32.6 percent in September.

Non-cotton exports reached their highest monthly value in July, at $1.31 billion, according to the data.

However, cotton is still the backbone of the sector. Monthly cotton exports ranged between $1.97 billion and $2.6 billion during the nine-month period.

The International Monetary Fund (IMF) has cut its economic growth forecast for Bangladesh in the current fiscal year (FY2026-27) to 3.2 percent from the 4.3 percent projected in April, joining other major development partners in downgrading their outlooks amid persistent economic challenges.

It also projected an increase in average inflation in Bangladesh to 10.9 percent in the current fiscal year, reversing the easing seen in FY26, when average consumer price inflation fell to 8.7 percent from double digits, according to the IMF’s World Economic Outlook (WEO) report released yesterday at the annual meetings of the IMF and World Bank Group in Bangkok.

The IMF’s inflation projection is higher than the World Bank’s forecast of 8.6 percent for the current fiscal year, FY27, made earlier this month. However, both multilateral lenders have cut their economic growth forecasts for the South Asian country.

The World Bank has recently revised down its forecast for Bangladesh’s economic growth to 3.4 percent this year, while the ADB trimmed its growth projection for Bangladesh to 4 percent in September.

It would be the fourth consecutive year of slowing economic growth, as energy shortages, banking sector vulnerabilities, subdued credit growth and tight fiscal constraints continue to weigh on Bangladesh’s economy.

The downgrade in the economic outlook for the South Asian economy comes as the IMF expects the global economy to grow by 3.1 percent in 2026, down from 3.5 percent last year, with the war in the Middle East and a surge in artificial intelligence-related investment pulling economies in different directions.

It projects that advanced economies will grow by 2.1 percent this year and emerging and developing economies by 3.7 percent. The Middle East and Central Asia region is expected to be the hardest hit, contracting by 0.3 percent.

In South Asia, India is projected to grow by 7 percent in both FY27 and FY28, among the fastest rates in the region. Pakistan’s economy is projected to expand by 3.6 percent in FY26 and 3.5 percent in FY27.

The IMF said the global outlook masks growing disparities, with 32 economies expected to account for 95 percent of global growth, down from 54 in April. About 47 percent of economies have had their growth forecasts downgraded.

Countries less exposed to the energy shock and more closely connected to the technology supply chain are holding up better, it said.

Energy-importing economies outside that supply chain, including many low-income countries, face higher import bills, currency pressures and weaker incomes. The IMF said oil prices will average around $96 a barrel in 2026, compared with $68 a year ago.

The fund said global inflation would rise to 4.7 percent this year from 4.1 percent in 2025, driven mainly by energy and food prices.

The multilateral lender warned that a prolonged conflict in the Middle East and weather disruptions linked to El Niño could push energy and food prices higher. A reassessment of expected returns from artificial intelligence investment could also trigger a sharp market correction.The IMF urged governments to rebuild fiscal buffers, avoid broad fuel subsidies and price controls, and keep any support temporary and targeted, preferably through cash transfers.

The International Monetary Fund (IMF) has warned that eroding foreign exchange reserves, shrinking fiscal buffers and opaque borrowing arrangements are leaving some emerging and frontier economies more vulnerable to global shocks.Economic analysis reports

The warning carries implications for Bangladesh as it faces pressure from energy costs and external financing needs, although the IMF’s Global Financial Stability Report, released on Tuesday, does not mention Bangladesh by name or provide a country-specific assessment.

The report says measures taken by emerging and frontier economies to cushion the energy shock have weakened their capacity to absorb further external pressures.

“Measures to cushion the energy shock have weighed on fiscal space and reserve buffers, leaving less room to maneuver if energy price pressures intensify or global financial conditions tighten,” it says.

Asian economies dependent on imported energy have experienced larger swings in capital flows, according to the report. It cautions that the effectiveness of foreign exchange intervention depends on countries’ underlying vulnerabilities and broader economic policies.

“Foreign exchange intervention outcomes depend importantly on underlying vulnerabilities, including energy dependence, and the broader policy response,” the IMF says.

The report also raises concerns about opaque financing arrangements, particularly among frontier economies, warning that such transactions can obscure debt exposures and weaken access to international markets.

“Continued buildup of these and other opaque transactions could increase the vulnerability of frontier economies to global shocks and hinder future market access,” it says.Buy Maps

The IMF highlights sovereign total return swaps, through which governments can raise cash against assets, including their own bonds. Such transactions may not be fully reflected in standard public debt statistics, making transparent reporting essential.

For Bangladesh, the report’s broader message is the importance of preserving foreign exchange buffers, maintaining credible macroeconomic policies and ensuring transparency in public borrowing as global financial conditions remain uncertain.

Bangladesh's finance and planning minister has signalled a shift towards international capital markets to reduce reliance on financing from the World Bank, IMF, and Asian Development Bank. He has spoken of cancelling the existing IMF programme the government inherited and issuing sovereign bonds. An Alternative Financing Committee is examining the options.

Diversifying financing sources is a sensible objective. Access to international capital markets can provide greater flexibility, broaden the investor base, and establish a sovereign borrowing track record. But commercial creditors impose their own discipline. They demand compensation for sovereign risk, scrutinise fiscal and external vulnerabilities, and can withhold new financing precisely when a country needs it most.

Ironically, accessing international bond markets on affordable terms may depend on guarantees from the very multilateral institutions Bangladesh seeks to move beyond. The central question is how much commercial borrowing can realistically provide, at what cost and maturity, and under what conditions.

The financing arithmetic
Options include renminbi-denominated Panda bonds issued in mainland China, offshore renminbi-denominated Dim Sum bonds, yen-denominated Samurai bonds issued in Japan, Islamic Sukuk, and international Eurobonds. Commercial sovereign bonds commonly carry maturities of three to 10 years, although longer tenors are possible. For a speculative-grade borrower, securing longer maturities at affordable rates is difficult.

Lower interest rates in Japan and China make yen- and renminbi-denominated bonds appear cheaper than dollar-denominated Sukuk and Eurobonds. But Bangladesh's credit rating would attract a substantial risk premium, while currency hedging costs could offset the apparent interest-rate savings.

The relevant measure is the all-in borrowing cost, including interest, issue expenses, guarantee fees, and currency hedging costs. Without hedging, foreign-currency bonds expose Bangladesh to exchange-rate movements that could substantially increase debt-servicing obligations.

Recent issuances illustrate the variation in borrowing costs. Indonesia's Panda and Dim Sum bonds in 2025-26 carried coupons of roughly 2-3%. Pakistan, a closer credit comparator, issued dollar Eurobonds in 2026 at around 7.5-8%. These differences reflect creditworthiness, currencies, maturities and financing structures, rather than directly comparable all-in borrowing costs.

Bangladesh's own experience offers a useful benchmark. In 2019, AAA-rated IFC issued a three-year taka-denominated Bangla Bond in London at around 6%, while PRAN, the ultimate borrower, paid about 9.5%. Although PRAN faced no direct exchange-rate risk, its borrowing cost was substantial. Bangladesh would face higher borrowing costs than AAA-rated IFC, reflecting its weaker credit standing.

Commercial bonds offer greater policy autonomy. They do not generally require specific reforms in utility pricing, state-owned enterprises or fiscal management. Governments also have more freedom over how they spend the proceeds, except when bonds are issued for specified purposes, and establish an international pricing benchmark for Bangladeshi corporations.

Multilateral financing offers a different cost structure. IDA blend credits carry interest rates of around 2%, with maturities of about 25 years, including five-year grace periods. ADB's concessional loans offer broadly similar terms, although its regular lending is market-linked. Lower rates and longer repayment periods substantially reduce debt-servicing and refinancing pressures.

But they entail negotiations, documentation and oversight. World Bank and ADB project loans impose procurement and safeguard requirements, while policy-based financing involves agreed reforms. IMF programmes carry macroeconomic targets and structural benchmarks. These requirements consume administrative resources and limit policy discretion.

The limits of market access
Can international bond markets make a meaningful contribution to Bangladesh's financing needs? External loan disbursements declined from about $9.5 billion in FY2023-24 to $7.5 billion in FY2025-26. Even against this reduced flow, how much could Bangladesh realistically raise through sovereign bonds, and at what cost?

The Bangla Bond experience illustrates the difficulty of sustaining market access. Despite a successful launch, it did not develop into a regular programme of international taka-denominated bond issuance. Initial investor interest does not necessarily translate into a dependable source of financing.

Annual Panda bond issuance was approximately $25-30 billion in 2024-25, although the market expanded rapidly in 2026. At the earlier market size, raising $2-3 billion would have represented roughly a tenth of annual issuance. Securing such financing would be a substantial undertaking for a new sovereign borrower, particularly in a market dominated by established, highly rated issuers.

Securing guarantees at this scale is far from straightforward. The World Bank Group issued more than $25 billion in guarantees in FY26, covering a range of investments and financing arrangements rather than sovereign bonds alone. Pakistan's inaugural Panda bond in 2026, backed by ADB and AIIB guarantees, raised about $260 million. These illustrate both the potential of guarantees and the difficulty of mobilising several billion dollars annually through guaranteed sovereign bonds. Paradoxically, commercial borrowing may require continued reliance on multilateral institutions.

Multilateral guarantees cannot substitute indefinitely for stronger creditworthiness. Investors and rating agencies assess fiscal performance, debt sustainability, external vulnerabilities, and the credibility of economic policies, drawing partly on IMF assessments. Ending an IMF programme without a convincing alternative policy framework could undermine investor confidence. Ultimately, affordable market access depends on stronger tax revenues, a healthier banking sector, better management of state-owned enterprises, and adequate foreign-exchange reserves.

Sovereign bonds come with refinancing risks. The principal often falls due in a single large payment. Governments may expect to repay maturing bonds by issuing new ones, but that option can disappear when investor confidence weakens. Sri Lanka, Ghana and Zambia illustrate how fiscal and external vulnerabilities, compounded by restricted market access, can culminate in debt distress and default. Their circumstances differed, but the lesson is common: borrowing from international markets is easier than ensuring continued access when debts mature.

Multilateral development loans are generally better suited to long-gestation infrastructure projects. Their extended repayment schedules allow more time for economic benefits to materialise. Financing such projects with shorter-maturity bonds creates repayment obligations well before those benefits emerge.

The policy trade-off
Sovereign bonds offer greater flexibility and fewer policy conditions, but at the price of higher borrowing costs and greater refinancing risks. Whether that trade-off is worthwhile depends on the terms Bangladesh can secure.

The Alternative Financing Committee should assess investor appetite and borrowing costs before considering a modest initial issue. A small offering could help establish a presence in international bond markets without taking on excessive commitments. Developing a reliable benchmark requires regular issuance, transparent disclosure, and an active investor base.

That comes from financial strength. Bangladesh still needs stronger public finances, a healthier banking system, reliable energy supply and credible macroeconomic policies. The measure of success is not how much Bangladesh can borrow from global bond markets, but whether doing so improves the country's long-term financing position.

Bangladesh has extended the deadline for submitting bids under its Offshore Bidding Round 2026 by four months to 31 March 2027 from 30 November 2026, following requests from international oil companies (IOCs).

The government has also made data-sale packages for the bidding round more accessible to encourage participation, according to a press release issued by the Ministry of Power, Energy and Mineral Resources today (13 October).

The ministry said the decision followed recent discussions with several internationally renowned oil companies and their requests regarding the bidding process.

The extended deadline will give interested companies more time to assess available data and prepare their bids for offshore exploration, the ministry said.

It expects the deadline extension and improved access to data packages to boost international oil companies' interest in the bidding round.

The information was disclosed in the press release by Muhammad Arif Sadek, deputy chief information officer of the ministry.

Bangladesh received US$9.88 billion in workers' remittances during July 1 to October 12 of the current fiscal year 2026-27, marking a 12.7 per cent increase from US$8.77 billion in the corresponding period of the previous fiscal year.Buy Maps

According to the latest Bangladesh Bank data, expatriate Bangladeshis sent home US$1.29 billion during October 1-12, compared to US$1.18 billion in the same period of 2025, registering a year-on-year growth of 9.2 per cent, reports BSS.

On October 12 alone, remittance inflow stood at US$124 million.

Asian equities fell sharply on Tuesday led by technology shares as a widening conflict in the West Asia kept oil prices elevated, supporting the dollar ahead of an earnings season that will set the tone for the rest of the year.

Energy prices are back driving global markets as investors weigh the geopolitical developments in West Asia and Russia-Ukraine, with Brent crude futures at $105.9 per barrel, near a two-week high.

Oil markets have been volatile as investors contend with the supply risks from attacks on Saudi Arabia while considering the prospect of additional diesel supplies from Russia.

"Markets are rediscovering that geopolitics matters most when it feeds back into inflation," said Charu Chanana, chief investment strategist at Saxo in Singapore.

"The renewed jump in oil is keeping pressure on yields and taking some shine off expensive growth stocks, especially as the Russia-Ukraine energy truce looks fragile and West Asia supply risks remain live."

In stocks, MSCI's broadest index of Asia-Pacific shares outside Japan fell 2 per cent in early trading, with tech-heavy South Korea's sliding 6 per cent. Japan's Nikkei sank 2.6 per cent after returning from a holiday.

"A lot of it has to do with the chip selloff we saw on Wall Street overnight. That's bleeding into the Asian region," said Kyle Rodda, a senior analyst at Capital.com.

Overnight, the tech-heavy Nasdaq fell 0.5 per cent, dragged by chipmakers as investors fret about the durability of the rally in AI stocks amid higher competition between the US and China.

"When you add another jump in oil prices and some positioning ahead of inflation data and earnings, you have all the ingredients for a risk-off day in Asia," Rodda said.

The cautious sentiment helped keep the US dollar near an 18-month high. The euro last bought $1.1157, while the Japanese yen was at 158.50 per US dollar.

Earnings Test Awaits

Investors' attention will be on the slew of US bank earnings this week to get a gauge on the impact of the recent surge in Treasury yields on dealmaking, lending growth and funding costs across the industry.

A toxic mix of inflationary pressure from elevated energy prices and worries about ballooning government debt have triggered several bouts of bond selloffs in recent weeks, pushing borrowing costs to multi-decade highs across the globe.

Four of the six largest US lenders, JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo will report results later in the day.

Anthony Saglimbene, chief market strategist at Ameriprise Financial, said investors will be looking to bank results for insights on whether households are still paying their bills, borrowing, and spending at healthy levels.

"The Q3 earnings season starts with stocks near record highs and little room for disappointment," he said.

"We believe for stocks to have an opportunity to grind higher from here, corporate America needs to turn in more A’s and B’s on their latest report cards and show they can maintain that momentum into year-end."

The benchmark 10-year yield was down 2.9 basis points at 5.214 per cent in Asian hours, staying close to the 24-year high of 5.364 per cent it hit last week.

Economist Selim Raihan has called for greater involvement of the private sector and international partners, including global buyers and investors, in financing Bangladesh’s green energy transition and supporting green growth. He made the remarks at a policy dialogue in Dhaka yesterday.

Bangladesh needs $230 billion between 2023 and 2050 to adapt to climate change, but the required funding has yet to be secured, said Raihan, a professor of economics at the University of Dhaka and executive director of the South Asian Network on Economic Modeling (SANEM).
Mobilising such a large amount would be challenging, making private investment and international financing essential to meeting the country’s climate goals and supporting the transition to cleaner energy, he said.

Selim made the remarks while presenting a keynote paper at SANEM’s policy dialogue titled “Can Green Growth Drive Bangladesh’s Next Phase of Development?” at the Sheraton Dhaka in the capital.

Businesspeople, economists and government officials attended the event, where discussions also focused on rooftop solar integration, grid stability, battery storage and disposal, and financing green growth through green bonds and carbon markets.

Monzur Hossain, member (secretary) at the General Economics Division of the Bangladesh Planning Commission, said the government was focusing on generating solar electricity from rooftops, particularly in areas along riverbanks.

However, integrating rooftop solar power into the national grid could create instability and imbalances, he said. Establishing isolated grids in some areas could be one solution, and work was underway to address the challenges.

While the government was considering these issues in its commercial projects, private-sector initiatives involving direct electricity sales to the government required strict quality control to protect public interests, Monzur added.

Md Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), also raised concerns about the practical challenges of implementing solar power projects, particularly battery storage and disposal.

Installing solar systems without batteries can reduce costs, but electricity generated during the day cannot be used at night unless it is stored, he said. However, lower nighttime demand warrants an assessment of whether battery-free systems could remain viable.

Fazlul also highlighted the environmental and technical challenges of battery disposal, particularly in the garment sector, where compliance requirements are stringent.

“Where will the batteries be disposed of? This is a major issue. It is highly technical and potentially very risky,” he said.

Drawing on his 12 years of experience with solar energy projects, Fazlul said implementing solar power initiatives was far more complicated than it might appear.

Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue (CPD), said green growth had become imperative for Bangladesh rather than a matter of choice.

“For Bangladesh, it is no longer a matter of choice; it has become an imperative,” she said.

The key challenge is to advance green growth through domestic policies and actions alongside international engagement, Fahmida added.

She also urged Bangladesh to explore green bonds and carbon markets to mobilise financing, saying both remained underutilised.

“Financing is an important issue. Bangladesh could explore green bonds and opportunities in carbon markets, areas that we have not explored sufficiently,” she said, adding that greater emphasis on market-based mechanisms was necessary because public resources were limited and faced competing demands.

Bangladesh will request Japan to introduce a country-specific "transitional concessional window" to provide Bangladesh with low-interest loans at least until 2029, as interest rates on loans under the official development assistance (ODA) programme have risen significantly, officials at the Economic Relations Division (ERD) said.

The request is set to be placed at a meeting between Finance and Planning Minister Amir Khosru Mahmud Chowdhury and Japan International Cooperation Agency (Jica) Senior Vice-President Shohei Hara, expected tomorrow, on the sidelines of the annual meetings of the International Monetary Fund and the World Bank in Thailand.

The finance minister is expected to seek measures to reduce the risks associated with Jica's floating-rate loans and propose an interest rate cap on such loans. He may also seek the option to convert floating-rate loans into fixed-rate loans, if necessary, or introduce other mechanisms for sharing interest rate risks between borrowers and lenders, ERD officials said.

They said the need for special concessions was being felt as the rising cost of Japanese loans had become a major concern during the transitional period ahead of Bangladesh's graduation from the Least Developed Country (LDC) category.

In April 2020, Jica's standard fixed interest rate for loans to eligible LDCs and low-income countries was just 0.7%. Under the agency's new lending terms, effective from 1 October 2026, the standard fixed interest rate has risen to 3.50%, marking a fivefold jump in six years. These loans have a repayment period of 30 years, including a 10-year grace period.

Bangladesh will emphasise at the meeting that Japanese ODA loans should not become comparable in cost to market-based financing and that their flexible and concessional nature remains crucial given the country's current economic situation.

Bangladesh is currently in the process of graduating from the LDC category and has also sought additional time to prepare for the transition.

An ERD senior official said interest rates on Jica loans were revised every six months. Before last October, the interest rate on Japanese loans was 3.05%, but it had since risen to 3.50%. The rate could increase further over the next six months.

Meanwhile, the interest rate on new floating-rate loans from Japan currently stands at 1.80%, although there remains a risk that the rate could rise over the long term, even after the loan agreement is signed. The issue is now under review.

ERD officials said that if the six-month Tokyo Term Risk-Free Rate (TORF) were used as the benchmark, the current six-month reference market rate would be approximately 1.35%. Adding a fixed spread of 0.45 percentage points would bring the total interest rate to around 1.80%.

If TORF rises to 1.50%, the total interest rate in the next cycle would increase to 1.95% – 1.50% plus the 0.45-percentage-point spread.

The government believes that although floating-rate loans may initially appear attractive, they can create considerable uncertainty over future debt-servicing costs, particularly for long-term infrastructure projects.

ERD officials said predictability in future debt-servicing costs was essential for medium-term revenue planning and debt management.

Bangladesh seeks to expand budget support

Bangladesh wants to move Japan's development assistance beyond project-based loans towards a regular, long-term framework for budget support and policy-based financing, ERD officials said.

The government also wants to discuss ways to curb cost overruns and repeated deadline extensions in Jica-funded projects, ensure the proper use of funds and improve transparency in project implementation.

Officials said one of the finance minister's key messages at the meeting would be the need to increase Japan's policy-based financing and direct budget support.

Urgent support on Matarbari power plant

Officials familiar with the matter said the finance minister might raise operational and technical problems at the Matarbari Ultra Super Critical Coal-Fired Power Plant directly with Jica's senior vice-president.

Recent reports have highlighted declining generation and several unresolved technical issues, including problems with the boiler and other systems. There have also been delays in determining technical responsibility and resolving the problems.

The main challenges facing the 1,200MW Matarbari coal-fired power plant include supply chain and fuel shortages caused by delays in coal imports and the dollar shortage, difficulties in opening letters of credit on time, mechanical and technical interruptions in maintaining ultra-supercritical technology, and limitations in transmission infrastructure for supplying electricity to the national grid.

These interconnected problems have frequently prevented the plant from generating electricity at full capacity or maintaining an uninterrupted supply.

Govt to be more selective in Jica projects

With interest rates on Jica loans rising, the government has decided to be more selective when approving future projects. New projects will need to align with the country's current development priorities and the government's electoral pledges.

Bangladesh also wants to develop a "strategic investment portfolio" with Jica instead of relying primarily on project-by-project loans. This would place greater emphasis on a project's contribution to employment, exports, production and private investment rather than simply the volume of financing.

Bangladesh seeks Japanese cooperation in new sectors, including export diversification

Bangladesh wants to expand cooperation with Japan beyond traditional development assistance into several new areas, including export diversification, the bond market, skilled human resources, digital transformation, pharmaceuticals and healthcare industries, ERD officials said. The finance minister will present a package of proposals on these issues at the upcoming meeting with Jica.

Officials said discussions would cover improvements in trade and logistics with Japan, as well as reducing Bangladesh's dependence on a limited range of export products, particularly readymade garments.

Bangladesh would finally achieve the government-set 6.5-percent GDP growth notwithstanding a sharply lower forecast by the International Monetary Fund (IMF), Finance Minister Amir Khosru Mahmud Chowdhury has expressed the optimism.

He said the country would assess its economic performance at the end of the fiscal year rather than debate growth projections.

"We do not want to debate anyone's projections. We are carrying on with our work, and the results will be seen at the end of the fiscal year. We remain hopeful of achieving the growth target set in our budget," he told journalists on the sidelines of the IMF-World Bank Annual Meetings in the Thai capital.

The IMF Tuesday projected Bangladesh's gross domestic product (GDP) growth at 3.2 per cent in FY2026-27, less than half the government target.

Meanwhile, the government is pursuing fresh financial support from the World Bank and the IMF to help cushion the economy against mounting external pressures, particularly the impact of the conflict in the Middle East on energy costs.

About his latest engagement with the World Bank as part of an ongoing dialogue, Mr Chowdhury said discussions with the lender were progressing as expected.

"Everything is moving on track. We spoke with the World Bank's vice-president yesterday and held discussions with its managing director for operations today."

The minister said the World Bank understood the economic challenges facing the new government, including the liabilities inherited from previous administrations and the additional pressure created by the ongoing war.

"They want to support us. They understand the circumstances in which the new government took charge, the economic difficulties we inherited and the liabilities left by previous governments.

"They also understand the pressure the ongoing war is putting on the economy, and they are prepared to support us in addressing these challenges," he told the press. Mr Chowdhury said the World Bank was aligned with the government's economic programmes and policy priorities for the short, medium and long terms.

"The World Bank is aligned with our programmes and policies," he said, adding that the discussions would lay the groundwork for continued cooperation.

Asked whether the government was seeking an additional $10 billion in assistance, the finance minister said no concrete decision had emerged from the meetings.

"These meetings are part of a series of discussions that will continue over the next few months. The World Bank's team will then visit Bangladesh, and a final decision will come thereafter."

He said the current discussions were intended to establish the basis for future cooperation rather than produce an immediate financing commitment.

"These discussions will establish the foundation for what we plan to do in the future," he added.

The minister also disclosed that Bangladesh submitted a detailed partnership framework to the World Bank, describing it as an unprecedented step in the country's engagement with the lender.

"This has never happened before, and we are now discussing the agenda outlined in that framework," he said.

The discussions come as Bangladesh seeks external financing to manage economic vulnerabilities, including higher energy import costs, inflationary pressure and strains on public finances.

The government is looking to multilateral development partners to help sustain its economic programme amid heightened geopolitical uncertainty.

Bangladesh entered a $4.7-billion IMF loan programme in January 2023 under the previous Awami League government. The package was subsequently increased to $5.5 billion during the interim administration.

The BNP-led government decided in May this year to exit the programme eight months before its scheduled expiry and later applied for a fresh financing arrangement, according to a June-3 statement by Ivo Krznar, the IMF's mission chief for Bangladesh.

Bangladesh has so far received $3.8 billion in five instalments under the original $4.7-billion package.

The government's pursuit of fresh support from multilateral lenders has gained importance as the conflict in the Middle East threatens to increase energy costs and complicate efforts to stabilise the economy and achieve its growth target.