Bangladesh has pledged to slash project implementation timelines for World Bank-funded initiatives from seven years to five and streamline the approval process from 18 months to just eight, as it seeks to secure $10 billion in additional loan assistance over the next three years.

Finance Minister Amir Khosru Mahmud Chowdhury informed the multilateral lender that the government is aiming to compress the approval window even further, down to five months, to accelerate development delivery.

The commitments were made during a high-level meeting in Bangkok between a Bangladeshi delegation led by senior government policymakers and World Bank Managing Director Anna Bjerde. As part of the discussions, the World Bank agreed to finalise its Country Partnership Framework with Bangladesh by June 2027.

Speaking to reporters following the talks, Khosru expressed satisfaction with the trajectory of negotiations, noting that the World Bank remains fully aligned with Bangladesh's broader economic policies and medium-to-long-term development plans. However, he cautioned that negotiations over the $10 billion package remain ongoing and could take several months to wrap up.

Coordinated support from World Bank and IMF
Senior government officials present at the meeting told The Business Standard that both the World Bank and the International Monetary Fund (IMF) have responded positively to Bangladesh's requests for assistance. Alongside the World Bank talks, the BNP-led government has proposed borrowing $4.5 billion from the IMF under a new loan programme.

"Both institutions are setting conditions across various areas, including banking sector reforms and enhanced revenue collection," a senior government official said. "Discussions are currently under way to coordinate and harmonise these reform requirements to prevent overlapping conditions."

If secured, the additional funding will cushion the economy against global shocks by financing critical energy and fertiliser subsidies, securing essential imports, recapitalising banks, and strengthening overall financial sector resilience.

Four priority pillars underpin $10b proposal

The government's request for additional financing rests on its newly drafted Resilience and Reform Investment Programme, which outlines four key priority pillars:

Trade Financing: Securing essential imports, particularly energy and fertiliser supplies.

Trade Facilitation: Supporting micro, small, and medium-sized enterprises (MSMEs).

Financial Governance: Driving deep reforms across the banking and financial sectors.

Economic Resilience: Enhancing macroeconomic capacity to absorb external shocks.

The proposal follows a high-level meeting between Prime Minister Tarique Rahman and World Bank President Ajay Banga on the sidelines of the UN General Assembly in New York last month. The formal framework was presented to World Bank officials in Bangkok on Monday.

Describing the effort to secure aid under this framework as "unprecedented in Bangladesh's history," the finance minister confirmed that written proposals and initial recommendations have been exchanged between both sides.

Focus on private investment, tax automation, and job creation

The World Bank's reform agenda for Bangladesh places heavy emphasis on private investment and job creation. Key priorities include tackling high non-performing loans (NPLs), reforming state-owned enterprises, and restoring health to the banking system to reignite economic momentum.

The Bangladeshi delegation highlighted several immediate steps already under way to restore market confidence:

Banking Sector Restructuring: Initiatives are in motion to recapitalise banks and protect depositor confidence, including joint interventions with the International Finance Corporation (IFC), the World Bank's private-sector arm. Visible cleanup measures have already commenced in targeted institutions.

Capital Market Oversight: An independent, professional securities commission has been instituted, replacing the previous political leadership model. Eased regulatory barriers have renewed interest among institutional fund managers across New York, London, and Hong Kong, with progress on a Hong Kong-based equity fund advancing rapidly.

Tax Administration Reforms: In line with longstanding recommendations from the IMF and World Bank, revenue policy formulation has been completely separated from tax administration. Furthermore, full automation of tax processes is being rolled out to boost the national tax-to-GDP ratio.

State-owned Sonali Bank has lent Tk7,000 crore to financially distressed private lender National Bank at an interest rate of 10% for three months, backed by a 100% guarantee from Bangladesh Bank.

Meanwhile, National Bank received around 7,500 withdrawal requests over the past three days, although the total amount sought was significantly lower than the bank's estimates, said its Chairman Melita Mehzabeen.

The bank has been accepting withdrawal requests from customers with deposits exceeding Tk1 lakh since 11 October to assess their demand for funds.

Speaking to The Business Standard today (13 October), Melita said National Bank would resume full and normal banking operations from 15 October 2026.

She expressed gratitude to customers for their patience and continued trust despite the bank's prolonged difficulties.

National Bank has sent SMS notifications to around 1.25 million customers explaining how to submit withdrawal requests at branches and providing the necessary instructions. It has also launched a hotline to provide information and assistance.

The bank is arranging to distribute sufficient cash across its 221 branches and 65 sub-branches. Adequate cash will also be available at its 53 ATMs so customers can withdraw money according to their needs, she said.

Melita added that National Bank was preparing to receive remittances through its own remittance houses and branches in Malaysia, the Maldives and Singapore. Although these institutions had received recognition for their contributions to remittance transfers, liquidity constraints had meant that most remittances sent through them were not routed via National Bank.

The bank is now prepared to ensure that beneficiaries receive remittances on time if the funds are channelled through it, she said.

According to Melita, National Bank is trying to manage its operations using its own funds under Bangladesh Bank's guidance. The central bank has assured it of support if needed, while other financial institutions may also provide assistance when required.

However, transactions will not resume in accounts frozen or restricted under applicable government or Bangladesh Bank regulations. Transactions in dormant accounts or accounts with outdated know-your-customer (KYC) information will also remain suspended until the required procedures are completed.

She also expressed hope that depositors would keep their money with the bank after receiving interest on their deposits rather than withdraw funds before maturity.

A Bangladesh Bank spokesperson told TBS that the central bank had instructed National Bank to take the necessary steps to return depositors' money.

"The governor has assured the bank that Bangladesh Bank will provide support if it faces difficulties while implementing these measures," the spokesperson said.

Under the guarantee arrangement, Bangladesh Bank will reimburse Sonali Bank within three working days if National Bank fails to repay the loan at maturity.

Sonali Bank Managing Director Shawkat Ali Khan said the bank had extended the liquidity support in line with Bangladesh Bank's initiative to restore confidence in the banking sector.

He said the central bank's 100% guarantee ensured that Sonali Bank would be reimbursed within three working days if National Bank failed to repay the loan at maturity, leaving Sonali Bank exposed to no risk.

He added that similar financing had previously been extended to Islamic banks against guarantees from the central bank.

National Bank struggles with financial distress

National Bank was once among the leading private-sector banks in Bangladesh. After the Awami League government came to power in 2009, major changes were made to the bank's board, and control subsequently passed to the Sikder family.

The bank underwent another board change following the fall of the Awami League government on 5 August 2024. However, it has yet to recover from irregularities and alleged financial plundering during the Sikder family's tenure.

A high volume of non-performing loans has weakened its financial indicators. The bank has continued to incur losses and struggled to meet depositors' withdrawal demands.

Bangladesh Bank has also provided substantial liquidity support to keep the loss-making lender afloat. Despite the assistance, the bank's normal transaction activities have yet to improve significantly.

Recently, four National Bank depositors approached the High Court after failing to withdraw their deposits. The court subsequently directed Bangladesh Bank to ensure that the depositors could withdraw money from their savings accounts.

Against this backdrop, National Bank Chairman Melita Mehzabeen and acting managing director Zahidul Haque met Bangladesh Bank Governor Md Mostaqur Rahman on 8 October.

During the meeting, Melita said recent measures taken by the central bank had helped establish good governance at National Bank. She also said positive changes had been introduced in loan management to improve efficiency and operational capacity.

The governor said the bank's liquidity position and its ability to meet depositors' withdrawal demands were being treated as priorities. He instructed the bank to take the necessary measures to protect depositors' interests, maintain confidence in the banking system and ensure orderly operations.

He also directed the bank to ensure that all depositors could withdraw money according to their needs from 15 October.

Central bank's exposure to National Bank

Earlier, National Bank borrowed Tk985 crore from several banks but failed to repay the money within the stipulated period. Bangladesh Bank subsequently settled the liability, turning the amount into a debt owed by National Bank to the central bank.

National Bank currently owes Bangladesh Bank Tk10,568 crore. The entire amount was provided by the central bank through the creation of new money, according to the information provided.

Banking sector insiders say Bangladesh Bank is facilitating loans from other banks against central bank guarantees to support lenders facing liquidity shortages.

While such assistance can help address immediate cash shortages, a lasting recovery will be difficult unless loan recovery improves and distressed banks strengthen their financial positions.

Olympic Industries has decided to buy 32.87 decimals of land in Narayanganj for Tk 1.15 crore to expand its operations.

The leading biscuit and confectionery maker decided to make the purchase at a board meeting on Monday, according to a disclosure on the Dhaka Stock Exchange (DSE) yesterday.

The land is located in Changain mouza under Kanchpur in the Sonargaon area of Narayanganj.

The company will also bear the registration costs, including value-added tax, other taxes and related charges.

This is the second time in a month that Olympic Industries has decided to buy land in the same district. On October 11, the company disclosed plans to purchase land in Narayanganj for Tk 3.38 crore.

In fiscal year 2025-26, the company’s revenue rose by more than 6 percent to Tk 2,955 crore.

However, net profit edged down to Tk 199 crore from Tk 201 crore a year earlier, which the company attributed to higher income tax expenses, according to a price-sensitive disclosure.

Olympic Industries has recommended a 35 percent cash dividend for the year ended June 30, 2026, up from 30 percent a year earlier.

The company’s shares remained unchanged at Tk 139.40 at the end of trading yesterday on the DSE.

Sponsors and directors held 37.38 percent of the company’s shares as of September 30, 2026, while institutional and foreign investors held the remainder, according to DSE data.

Dhaka Stock Exchange (DSE) Chairman Mominul Islam on Monday warned that investors are being defrauded through fake investment offers, misinformation and promises of doubling their money in a short time on social media.

“Investors are suffering financial losses due to these scams, which are run using the logos of stock exchanges and financial institutions,” he said at a seminar titled "Digital Deception and Scam Alert" held at the DSE Tower in the capital's Nikunja area.

Mominul said public confidence in the capital market is also being eroded, stressing the need for modern surveillance, enforcement of laws, greater investor awareness and stronger communication to tackle the situation.

The DSE and the DSE Brokers Association of Bangladesh (DBA) jointly organised the seminar as part of "World Investor Week 2026."

The DSE chairman said a key condition for ensuring effective information flow in the capital market is delivering timely, accurate and complete information to investors. “However, with the spread of social media, digital fraud has emerged as a new challenge.”

Using the logos of stock exchanges and various financial institutions, many people are posing as registered or licensed financial analysts, he said, adding that such moves are aimed at misleading and influencing investors.

Unrealistic promises, such as turning Tk 1 lakh into Tk 2 lakh within two weeks, are being used to lure people into traps, Mominul said.

Fraudsters are running various scams, including Ponzi schemes, by exploiting people's desire to get rich quickly, he said, noting that social media has spread such frauds far more widely than before.

The DSE chairman further said a huge volume of information unrelated to market fundamentals is circulating on social media. “Some individuals, in the name of technical analysis, are making remarks about the market that have no connection to its fundamentals.”

"Vested quarters may be behind such activities," he said, adding that investors are being confused and there is a risk of disruption to the normal functioning of the market.

Mominul said the DSE has taken steps to modernise its surveillance and monitoring systems.

It is also moving to make investor awareness programmes more effective in coordination with the Bangladesh Securities and Exchange Commission (BSEC), he said.

Preventive measures alone cannot stop digital fraud, the DSE chairman said, adding that credible information and positive messages must also be presented to counter misleading campaigns.

For this, he stressed building strong brokerage houses, merchant banks and asset management companies in the capital market, saying their institutional capacity and governance must be improved while also focusing on earning public trust.

Mominul underlined the need for collective efforts to develop the capital market as a strong and effective pillar of the economy.

Effective surveillance, greater awareness and a robust communication system must be built to combat digital fraud and restore investor confidence, he added.

The International Monetary Fund (IMF) has further lowered Bangladesh’s growth forecast for the fiscal year 2026-27 (FY27) to 3.2 per cent, down from its previous projection of 3.5 per cent made in July.

The Washington-based lender unveiled the latest projections in its World Economic Outlook (WEO) on Tuesday in Bangkok, as part of the 2026 Annual Meetings of the IMF and the World Bank Group.

The IMF also projected Bangladesh’s inflation rate to rise to 10.9 per cent in FY27, up from its April forecast of 6.0 per cent.

During the first three months of the current fiscal year, headline inflation stood at 8.32 per cent, 8.26 per cent and 8.34 per cent, respectively.

The IMF’s latest projections came days after the World Bank and the Asian Development Bank (ADB) issued weaker economic outlooks for Bangladesh for FY27.

On October 6, the World Bank projected Bangladesh’s gross domestic product (GDP) growth at 3.4 per cent in FY27, citing energy and banking-sector vulnerabilities, weak investment and persistent inflationary pressures as factors weighing on economic activity.
The World Bank also forecast inflation to remain elevated at 8.6 per cent in the current fiscal year.

Earlier, in September, the Manila-based ADB lowered its FY27 growth forecast for Bangladesh to 4.0 per cent from its earlier projection of 4.5 per cent.

In its Asian Development Outlook (ADO) September 2026 report, the ADB said severe structural energy deficits, banking-sector stress and persistent inflationary pressures would continue to constrain the country’s economic expansion in FY27.

The ADB also projected Bangladesh’s inflation rate to rise to 9.0 per cent in the current fiscal year.

Strong deposit growth in August has failed to spur robust private sector credit expansion, according to a government report.

Banking sector deposits stood at Tk 21.31 lakh crore in August 2026, up 12 percent year-on-year, according to the Economic Update & Outlook September 2026 prepared by the General Economics Division (GED) of the Bangladesh Planning Commission.

“This is faster than the 10.01 percent growth recorded a year earlier, so deposit collection has gained momentum,” the report said.

“It suggests that liquidity in the banking system has improved and that depositors’ confidence is recovering,” it added.

In contrast, private sector credit grew by 4.75 percent year-on-year to Tk 18.30 lakh crore in August, below the 6.35 percent growth recorded in the same period the previous year, according to the report.

Private sector credit is likely to remain subdued in the near term if borrowing costs stay high, the GED report says
Private sector credit is likely to remain subdued in the near term if borrowing costs stay high, business confidence recovers slowly and credit risk remains elevated, the report said.

Credit growth was uneven across sectors. Public sector credit rose by 32.45 percent to Tk 7.22 lakh crore in August, more than double the 14.81 percent growth recorded in the previous year.

“Heavy public sector borrowing may also crowd out private lending. The pace of private credit recovery will therefore be the key indicator to watch,” the report said.

Overall, the gap between deposit growth and private credit growth points to ample liquidity that is not being channelled into productive private investment, according to the GED.

Policy attention should focus on easing financing costs, improving the investment climate and strengthening the banking sector’s ability to lend, it said.

“Sustained deposit growth would give banks the resources to support a revival of private credit as macroeconomic conditions stabilise,” it added.

Bangladesh has discussed a possible new long-term liquefied natural gas (LNG) supply agreement with QatarEnergy, exploring ways to diversify supplies through the company's international portfolio of sources and transportation routes amid growing concerns over energy security.

State Minister for Power, Energy and Mineral Resources Aninda Islam Amit held bilateral talks with Saad bin Sherida Al Kaabi, Qatar's minister of state for energy affairs and also QatarEnergy President and CEO, in Saudi Arabia yesterday (11 October), according to a press release issued by the Ministry of Power, Energy and Mineral Resources.

The discussions covered Bangladesh's growing gas demand, its existing LNG import arrangements and the possibility of a new long-term supply contract.
State Minister for Power, Energy and Mineral Resources Aninda Islam Amit (third from the left) is pictured during bilateral talks with QatarEnergy in Saudi Arabia on 11 October 2026. Photo: Courtesy
State Minister for Power, Energy and Mineral Resources Aninda Islam Amit (third from the left) is pictured during bilateral talks with QatarEnergy in Saudi Arabia on 11 October 2026. Photo: Courtesy

The meeting also highlighted the potential to diversify LNG supply sources and routes through QatarEnergy's international portfolio, an important consideration for Bangladesh as it seeks to strengthen energy security amid disruptions to international fuel supply chains.

Qatar has been a major LNG supplier to Bangladesh under long-term contracts.

However, disruptions to Qatari LNG supplies following the US-Israel war on Iran and the closure of the Strait of Hormuz have increased uncertainty over deliveries, putting additional pressure on Bangladesh's efforts to secure gas for power generation, industry and other consumers.

The latest discussions come as Bangladesh seeks to broaden its supplier base and reduce exposure to supply disruptions in any single region or shipping route.

Saudi Arabia talks focus on energy security

In a separate meeting, Amit sought Saudi Arabia's cooperation in strengthening Bangladesh's energy security and expanding bilateral cooperation in the energy sector.

He met Saudi Assistant Minister of Energy Nasser Al-Qahtani, with discussions focusing on long-term energy cooperation, the establishment of a framework for collaboration between the two countries and potential support for Bangladesh's energy development plans.

Amit highlighted the need for long-term energy supply arrangements and cooperation in developing LNG infrastructure, including terminal facilities.

He also raised the prospects for offshore and onshore gas exploration as Bangladesh seeks to strengthen domestic supply and meet its growing energy requirements.

The state minister expressed hope that Saudi Arabia would extend its support to help Bangladesh achieve its energy goals by 2030.

He also stressed the importance of exchanges between representatives of the two countries and the establishment of a cooperation framework to advance joint initiatives.

The Saudi side said Bangladesh holds particular importance as a brotherly country and expressed optimism about strengthening existing cooperation in energy security and other development areas.

The discussions with Saudi Arabia are significant as Bangladesh seeks additional international partners to support its energy needs while dealing with uncertainty in global LNG markets.

ACWA Power expresses interest in renewable energy investment

Amit also met Samir J Serhan, chief executive officer of Saudi energy and water company ACWA Power, to discuss investment opportunities in Bangladesh's renewable energy sector.

ACWA Power expressed interest in investing in the sector, according to the ministry's press release.

The meetings took place on the sidelines of the 17th International Energy Forum in Riyadh. Members of the Bangladesh delegation and officials from the Bangladesh Embassy in Saudi Arabia were also present.

Indications are there that the International Monetary Fund (IMF) might extend a loan of US$4.5 billion under a new programme to Bangladesh.Bangladesh economic news

Officials said the preliminary positive indications came as a Bangladesh delegation led by Finance Minister Amir Khosru Mahmud Chowdhury Monday opened negotiations on the sidelines of the IMF-World Bank annual meetings in Bangkok.

The IMF lending recipe that covers three years is meant to help meet the country's external financing needs and support economic reforms.

Preliminary discussions between Bangladesh and the Washington-based multilateral lender have figured out a $4.5-billion package, although the final amount, financing terms and policy conditions have yet to be agreed, officials at the Ministry of Finance (MoF) said.

The proposed programme is expected to provide balance-of-payments (BoP) support to Bangladesh, which continues to face pressure from elevated inflation, external-financing requirements, weak revenue mobilisation and vulnerabilities in the banking sector.

After a meeting with the IMF, Finance Minister Amir Khosru Mahmud Chowdhury Monday told journalists that they completed first round of discussions with the IMF on the day and would sit again on Tuesday or Wednesday.

A senior MoF official said the IMF spoke of the types of conditions that are lookalike with the terminated previous loan programme.

"IMF's talks are dominating some conditions like improvement in Bangladesh's tax-GDP ratio, baking sector reforms, rationalizing subsidies in energy and agriculture sectors and tightening monetary policy to control inflation," the MoF official told The Financial Express.Trade policy analysis

The proposed assistance would come at a critical time for Bangladesh's economy, as policymakers seek to rebuild foreign-exchange reserves, stabilise prices and maintain external-sector stability.

Balance-of-payments support would help the country meet its external-financing requirements and strengthen its capacity to manage foreign-exchange pressures.

The actual impact, however, would depend on the disbursement schedule, financing terms and implementation of the agreed policy measures.

The MoF official said: "After the Bank-Fund meeting, a mission from the IMF is likely to visit Bangladesh within a month. Then the final talks on the terms and conditions of the proposed loan will be finalised."

Meanwhile, Bangladesh has already received substantial financial assistance under the last IMF-supported arrangements, which include the Extended Credit Facility (ECF), Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF).

On January 30, 2023, the IMF approved a $4.7-billion loan arrangement for Bangladesh. The then Awami League government had sought the assistance through a letter sent in July 2022.

Of the seven instalments under that arrangement, $3.64 billion had been disbursed in five instalments.

During the interim government, the size of the loan was increased by $800 million to $5.5 billion in June 2025.Read Market News

Later, the present government decided to scrap the ongoing programme and requested a fresh financial arrangement to reflect changing economic circumstances and its reform priorities.

The MoF official said banking-sector reform is expected to be a major component of the proposed programme.

Bangladesh's banking industry has faced longstanding weaknesses, including non-performing- loan (NPL) buildups, capital deficiencies and governance concerns.

The government is also likely to face pressure to increase domestic revenue collection, which remains low relative to the size of the economy.

Potential measures include widening the tax base, improving tax administration and reviewing exemptions and duties. Any additional revenue measures would need to be balanced against their effects on inflation, households and businesses.

The IMF has also emphasised the need for prudent fiscal and monetary policies, improved exchange-rate flexibility and better-targeted subsidies.

Meanwhile, the Finance Minister said on Monday in Bangkok that Bangladesh is optimistic about securing a new loan programme with the IMF and is negotiating a World Bank partnership framework that would provide a financial cushion against mounting energy costs and capital shortfalls in the banking sector.

The government is seeking support for the next two to three years to manage the pressure on public finances from high oil and gas prices amid ongoing wars and global economic uncertainty, while exploring ways to address capital deficiencies in banks with support from the International Finance Corporation (IFC).Bangladesh economic news

"We need a cushion against that pressure. We need this cushion for two to three years under the partnership to support our deficit in energy and banks," he told journalists at the IMF-World Bank Annual Meetings in Bangkok.

He said discussions with both the IMF and the World Bank were progressing, expressing confidence that outstanding issues would be resolved through further negotiations and a phased implementation of reforms.

"We are optimistic on the loan," Mr Khosru said.

He wouldn't disclose the amount Bangladesh seeking from the IMF. He would discuss the matter later.

On the World Bank's proposed partnership framework, he said negotiations were underway and a team from the lender would visit Dhaka to assess the country situation.

"We are in discussion with the World Bank on a partnership framework agreement. We will have a programme with the World Bank which will be pretty good," he said.

He said the government expected revenue earnings to rise soon, with the tax-to-GDP ratio gradually increasing as fiscal measures took effect.

The finance minister dispels musings that the government is uncomfortable with the IMF's position, saying that its policies are broadly aligned with the public mandate and that discussions with the lender are continuing.Trade policy analysis

The finance minister said the IFC expressed interest in helping address capital shortages in Bangladesh's banking sector and the private sector, adding that representatives of the World Bank's private-sector lending outfit would visit Dhaka.

"Interestingly, IFC showed interest. They are coming to Dhaka. IFC is working on recapitalisation of banks and the private sector," he said.

He has noted that capital deficiencies affected a number of banks and private businesses, making fresh investment important for restoring financial strength and supporting economic activity.

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

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

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

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

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

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

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

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

In a move to sustain industrial production and maintain market stability, Bangladesh Bank extended policy support and relaxed financial restrictions under the Bank Company Act for two Beximco Group companies — Shinepukur Ceramics and Beximco LPG Unit-1.

The two companies have been exempted from complying with Section 27Kaka(3) of the act, a move expected to ease difficulties in opening letters of credit (LCs) and securing working capital to import raw materials.

The central bank issued a circular today (12 October) granting the exemption until 31 December 2027.

Under the facility, Shinepukur Ceramics, a listed company, can now open LCs with a 15% margin, down from the previous 100%. Despite not being a defaulter itself, the company had been treated as one because of defaults by other Beximco Group companies.

Beximco LPG Unit-1, meanwhile, will be allowed to open LCs with a 100% margin. Previously, defaults by other group companies had prevented the LPG business from opening any LCs.

Following the fall of the Awami League government on 5 August 2024, Beximco LPG Unit-1 was unable to open LCs and had to buy raw materials from other domestic LPG companies to supply the market. The new facility will allow it to import raw materials directly.

Earlier, the Bangladesh Securities and Exchange Commission (BSEC) restructured the boards of three listed Beximco Group companies, excluding the group's vice-chairman, Salman F Rahman.

Shinepukur Ceramics

The Bangladesh Bank notification said the central bank had granted the facility under the powers conferred by Section 121.

It said that although Sonali Bank's customer Shinepukur Ceramics Limited is a loan defaulter, its existing working capital limit of Tk105 crore had been renewed in the national interest. The renewed facility will remain valid until 31 December 2027.

As a result, the company will not face any complications under Section 27Kaka (3) of the Bank Company Act, 1991.

The central bank imposed two conditions for the facility. First, the Finance Division will bear no liability for the credit facility, and Sonali Bank will not be able to claim financial assistance from the government in the future.

Second, all earnings of Shinepukur Ceramics must be deposited into a designated account, from which Sonali Bank's dues must be repaid regularly on a proportional basis.

A Beximco Group official, speaking on condition of anonymity, said, "Shinepukur Ceramics will be able to operate at its optimum capacity following approval for the renewal of its working capital facility. Since 5 August, the company had been required to open letters of credit (LCs) with a 100% margin, while its funded facilities had declined to Tk35 crore from Tk80 crore."

Beximco LPG Unit-1

A separate notification said National Bank PLC had been allowed, under Section 121 of the Bank Company Act, to open letters of credit (LCs) and provide working capital to its loan-defaulting customer Beximco LPG Unit-1 Limited against a 100% margin.

Subject to certain conditions, the restrictions under Section 27Kaka(3) of the Bank Company Act, 1991, will not apply to the facility until 31 December 2027.

The conditions stipulate that the facility will not create any liability for the government or Bangladesh Bank, and National Bank will not be entitled to seek financial assistance from either in the future.

All earnings of Beximco LPG Unit-1 Limited must be deposited into a designated account, from which National Bank's dues must be repaid regularly on a proportional basis.

Earlier, following a request from the group, the BSEC approved the reconstitution of the boards of three listed Beximco Group companies — Beximco Pharmaceuticals, Beximco Ltd and Shinepukur Ceramics — excluding Vice Chairman Salman F Rahman, to break a years-long deadlock and resume regular operations.

With Salman F Rahman, former private industry and investment adviser to ousted prime minister Sheikh Hasina, excluded, the three companies will operate without him on their boards for the first time since their inception, according to group sources.

Salman agreed in September to step down from the boards of Beximco's listed companies to resolve the prolonged operational deadlock and restore full operations. He has remained in custody since August 2024 over multiple criminal charges.

Following consultations with the government and regulatory bodies, Beximco Group applied to the BSEC to reconstitute the boards of its listed companies.

Strong investment in AI infrastructure is keeping global growth at around 3 percent, yielding major benefits for many Asian economies that supply the hardware, such as Thailand, International Monetary Fund Managing Director Kristalina Georgieva said on Monday.

The artificial intelligence investment boom was already delivering a "demand shock, an investment shock" that could boost growth in advanced Asian economies by a half to one full percentage point, and emerging Asian economies by 0.2 to 0.8 percentage point, she said.

"AI, love it, hate it. It's already here," Georgieva said.

"That shift into higher gear is what is keeping the world economy growing at around 3 percent, despite the fact we are being dragged down by the energy supply shock," she told hundreds of participants on the first day of a weeklong set of meetings of the IMF and World Bank in the Thai capital.

The IMF in July forecast global growth at 3 percent in 2026. It will release an updated outlook on Tuesday. Some 18,000 people are expected to attend the meetings this week, including finance officials from the IMF's 191 members. Several ministers will skip the meeting to focus on domestic priorities, including US Treasury Secretary Scott Bessent and Spanish Finance Minister Arcadi España, sources familiar with the matter said.

AI WILL HAVE PROFOUND CONSEQUENCES

Georgieva said AI amounted to a "slow-moving tsunami" that would have profound consequences for jobs, growth, education and even how governments generate revenue through taxation, given the expected shift from labor to capital. The IMF estimates that AI could lead to 40 percent of jobs being augmented, downgraded or eliminated, over time, she said.

An initial study showed that 10 percent of jobs in the US already required AI skills. While routine, repetitive jobs were shrinking, low-paying jobs were increasing in two lower-paying sectors, construction and data centers. "It is a transformative technology. It so completely changes how we work, how we live," she said, noting that an AI assistant now gave her a 30-second message about her schedule each day.

The US, China and India are the most important producers in the AI supply chain, but many of the firms building the needed infrastructure are in Asia, Georgieva said, referencing Thailand, host of this year's annual meetings.

AI IMPACT ON ENTRY-LEVEL JOBS

World Bank President Ajay Banga, who has made jobs a central focus of his presidency, said the development bank was focused on leveraging "small AI", which is not dependent on large language models, to generate enormous productivity gains for farmers, healthcare systems, educators and others in emerging markets.

Singapore's President Tharman Shanmugaratnam, speaking at the same event, said governments should address how AI was reducing job opportunities for graduates. "There is a particular problem that we have to address very soon ... and that is that, the first rung in employment, your first job upon graduation, is now seeing less demand," he said.

He said the world should also guard against AI resulting in a "new divergence" in growth and job creation between developing and advanced economies.

"AI is going to widen the divergence if we are too passive about it," he said.

"So we've got to do everything we can to first use AI to create good jobs and to create jobs that can be done well by human beings, can allow them to ride up a career ladder despite AI."

Bangladesh's rural borrowing rate has risen from 36% to 42% of households over two decades, while agriculture's share of rural loans has fallen from 25% a decade ago to 16%.

The findings were presented at a workshop on food-system financing organised today (12 October) by the Bangladesh Institute of Development Studies (BIDS) and the International Food Policy Research Institute (IFPRI) in Agargaon, Dhaka, with support from the Consultative Group on International Agricultural Research's (CGIAR) Better Diets and Nutrition Science programme.

NGO microfinance institutions account for three out of every four rural loans. Although the median size of NGO microloans has nearly doubled in real terms, borrowers face mounting repayment pressure. NGO loans carry a flat 15% rate, equivalent to an effective rate of about 27%, compared with bank lending rates averaging around 10%. Informal moneylenders charge 50%-60% annually.
The share of borrowers spending over 40% of their income on instalments has risen from 22% to 41%, reaching 79% among the poorest 20% of households. The share of NGO borrowers also taking moneylender loans has increased from 27% to 49%.

Small farmers face credit constraints

Research presented at the workshop found that borrowing per acre for farms smaller than half an acre doubled from Tk6,000 in 2010 to Tk13,500 in 2022. Banks' emphasis on land ownership excludes many farmers who lease land with cash.

Agricultural loans largely finance fertiliser, seeds, livestock and land leases, with little investment in mechanisation. Fewer than 2% of farm households own tractors or power tillers, while banks finance only 2%-7% of agricultural machinery costs.

Loan repayment schedules also fail to match farm income cycles. While 60–80% of agricultural bank and moneylender loans allow lump-sum or annual repayment after harvest, only 4–6% of NGO loans offer similar flexibility.

Livestock, which contributes 7.6% of agricultural GDP and is owned by small farmers in 90% of cases, receives less than 5% of agricultural loans. Research suggests cattle fattening can yield 20%-30% profit over six months.

Experts seek broader financing reforms

PKSF Managing Director Md Fazlul Kader said financing must cover the entire food system, including collection, storage, processing and marketing, while supporting environment-friendly farming.

BIDS Director General Prof AK Enamul Haque called for risk-sharing arrangements and greater use of technology to raise productivity, warning that rising debt could push farmers out of agriculture.

Microcredit Regulatory Authority Executive Vice-Chairman Prof Mohammad Helal Uddin said the sector's accumulated surplus grew from Tk3,000 crore in 2006 to Tk69,000 crore. He called for reviewing financing costs and service charges, which can reach 24%, noting that greater reliance on savings could reduce borrowing costs.

Agriculture Secretary Md Selim Khan stressed accessible machinery finance and repayment schedules aligned with harvest seasons.

Participants said expanding credit alone would not improve farmers' financial security without lower financing costs, flexible repayment terms and effective risk-sharing mechanisms.

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

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

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

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

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

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

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

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

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

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

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

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

C&A Textiles' prolonged troubles

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

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

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

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

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

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

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

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

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

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

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

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

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

Stock prices surge while factories remain shut

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Turning demographic change into economic gains

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

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

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

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

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

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

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

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

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

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

Russia has yet to confirm its agreement.

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

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

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

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

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

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

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

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

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

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

US futures were sharply higher.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Information packages draw wider interest

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

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

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

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

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

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

ExxonMobil, BP and Eni in talks

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

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

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

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

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

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

Deepwater experience among potential players

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

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

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

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

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

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

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

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

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

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

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

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

Falling rice prices provide relief

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

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

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

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

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

Price developments across other food categories remained mixed.

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

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

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

Wage growth falls below inflation

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

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

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

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

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

Transport-related cost pressures persist

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

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

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

ADP implementation remains sluggish

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

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

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

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

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

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

Mixed signals from the economy

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

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

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

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

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

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