Finance ministers and central bankers meet in Bangkok this week for the annual gatherings of the International Monetary Fund and World Bank, with the global economy buffeted between the US-Iran war’s energy shock, rising debt pressures and the AI boom.

The meetings run from Monday through Saturday in the Thai capital, and will see policymakers tackle some stark choices, with the IMF calling on governments to rein in spending even as vulnerable citizens’ needs may be growing in the face of surging inflation and climate risks.

The week will see a combination of high-level closed-door meetings, public events and policy announcements from the world’s top economic officials.

On Tuesday, the IMF will unveil its global economic forecast, along with detailed regional outlooks through the week, as policymakers set about tackling the challenges darkening the economic horizon. In Bangkok, IMF chief Kristalina Georgieva highlighted how the world economy was being pulled in opposite directions by the negative energy supply shock caused by the US war on Iran and the positive demand shock of the artificial intelligence technology boom.

World Bank President Ajay Banga said AI-powered applications could run on less powerful smartphones and be used in healthcare, education, agriculture and other fields that are development priorities for low-income countries.

“That shift into higher gear (from AI) is what is keeping the world economy growing at three percent,” she told an event on the first day of the meetings, adding the growth was “despite the fact we are being dragged down by the energy supply shock.”

At a press briefing, World Bank President Ajay Banga told AFP his message to developing countries on AI was to focus on building “small AI” applications, rather than trying to compete on capital-intensive models.

“Don’t try and compete with America and China on frontier models and large data centres,” he said. “You don’t have the computing power. You don’t have the electricity. You don’t have the people.”

Banga said AI-powered applications could run on less powerful smartphones and be used in healthcare, education, agriculture and other fields that are development priorities for low-income countries.

Chief among concerns in Bangkok will be the economic fallout of the US war on Iran, which has seen energy prices skyrocket as Tehran’s retaliatory action has targeted Washington’s Gulf allies and curtailed global oil and gas supplies.

The IMF has warned that the effects of the shock have been unequal, with developing countries reliant on imported energy hit the hardest. Despite the crisis, the Fund has called on countries to curb spending on subsidies and instead build their fiscal buffers after years of shocks since the pandemic.

Critics say that approach is just not feasible for low-income countries, and that multilateral lenders need to do more.

“The poorer member states of the IMF and World Bank are in distress from spillovers of the Iran war, rising interest rates in the West, and a climate crisis exacerbated by El Nino,” said Kevin P. Gallagher, director of Boston University’s Global Development Policy Center.

“The IMF and World Bank are not meeting this moment. They need an ambitious response that provides short-term emergency liquidity alongside longer term financing to make their economic growth paths less vulnerable to these shocks.” And the needs are great, according to the United Nations Development Programme (UNDP).

The combined shocks “could leave millions more in poverty as developing countries struggle to sustain support for households,” the UNDP warned in a report on Sunday. “We are witnessing a perfect storm that could throw tens if not hundreds of millions of people back into poverty,” said UNDP Administrator Alexander De Croo.

In the developing world, he added, governments are being forced to make the “impossible” choice between cutting support for their poorest citizens or risking their entire development agenda.

Advanced economies in Europe and the United States have weathered the storm from the rising energy prices better, but have not been immune to surging inflation fuelled by those price increases, which have begun to bleed into other goods.

That inflation has seen central banks around the world raise interest rates in an effort to curb rising prices, tapping the brakes on economic activity.

Still, advanced economies have seen a boom in investment in artificial intelligence technology drive stock markets to new highs and bolster economic growth.

The week will also see several key meetings on the sidelines, including of G20 finance ministers, where spiking bond yields will be high on the agenda.

A notable absence at that meeting will be US Treasury Secretary Scott Bessent, who will skip due to “domestic engagements”, a department official said on Friday.

A UN global poverty index has risen for the first time since its creation in 2010, bringing the number of people affected to 1.2 billion, the United Nations Development Programme reported Monday.

In the 2026 edition of their annual report, the UNDP and the Oxford Poverty and Human Development Initiative research center counted 51.5 million more people living in “acute” poverty compared to the previous year.

UNDP Administrator Alexander De Croo said the increase in poverty should be a “wake-up call for the world.” “Behind these figures are 1.2 billion people facing hardships that reinforce one another: hunger, missed schooling and a lack of clean water or electricity. This is unacceptable,” he said in a press release. More than half of those in acute poverty were children.

However, UNDP said a major factor in the recorded increase was population growth, and new data was only available for 13 of the 108 developing countries covered by the report.

While the total number of people in poverty has increased, the report provides a mixed picture. Some 33 nations have halved the percentage of their people living in poverty as defined by the index in the past 15 years.

Those included six countries in sub-Saharan Africa. Among the countries that have made the most rapid progress were countries in Asia -- China and Vietnam -- UNDP said. As in the previous year, the report found that the majority of the poorest people live in sub-Saharan Africa and South Asia, specifically the Indian subcontinent, the most densely populated region on Earth.

“In Egypt, Nepal, and Tajikistan, both the poverty rate and the number of people experiencing multidimensional poverty have decreased significantly,” the press release said.

In Angola and Zambia, the poverty rate has also declined, but population growth has more than offset this decrease, resulting in an increase in the number of people living in poverty.

The poverty index used in the report includes indicators such as the lack of adequate housing, sanitation, electricity, cooking fuel, food and education.

Bangladesh's letters of credit (LCs) for imports rose to $8.10 billion in September, the highest monthly level in 53 months, as higher fuel and raw material prices pushed up import costs alongside a modest increase in import volumes.

A senior Bangladesh Bank official confirmed the figures to The Business Standard, saying LC openings had last exceeded $8 billion in April 2022, when they reached $8.41 billion.
LC openings rose 22.37% year-on-year from $6.62 billion in September last year. LC settlements, meanwhile, stood at $6.38 billion in September.Bankers said the increase in LC openings largely reflected higher import bills, particularly for petroleum products, as geopolitical tensions in the Middle East pushed up fuel prices. Importers are now paying more for the same volume of fuel, while a modest increase in import volumes has also contributed to the rise. They, however, said the volume in capital machinery imports did not rise.
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The higher cost of fertiliser imports has added to the pressure, as Bangladesh typically imports larger quantities of the agricultural input in August and September.

Higher prices push up import bills

A senior executive of a leading business group told The Business Standard that import prices had risen since the outbreak of conflict in the Middle East, with costs increasing particularly sharply over the past two months.

Citing some examples, another business executive said the cost of importing zinc had risen to $4,200 from $3,200, while the price of flat steel had increased to $575 from $500. The cost of bitumen had climbed to $650 from $450.

Hassan O Rashid, managing director of Prime Bank, said higher fuel prices were a major factor behind the increase in import costs, while a modest rise in raw material imports could indicate a gradual improvement in business activity.

"Raw material imports have also risen somewhat, which could indicate some improvement in business momentum. Although the recovery may be slow, I believe business activity could expand to some extent in the future," he said.

A senior official of a bank said the country had imported more than $200 million worth of fertiliser last month, adding that the cost of importing the same quantity had previously been lower.

Bankers said the increase in import costs appeared to have contributed more to the rise in LC openings than the growth in import volumes.

Imports rise amid trade deficit

Bangladesh's merchandise imports grew by more than 12% year-on-year in the first two months of FY2026-27, with imports totalling $12.20 billion, according to balance of payments data.

The merchandise trade deficit reached $3.82 billion during July and August, as import expenditure exceeded export earnings.

A senior official of a private bank said businesses faced no major restrictions on opening LCs because banks had sufficient dollar liquidity to facilitate import payments.

Bangladesh has secured a $335.78 million concessional loan from China's Export-Import Bank to expand and modernise Mongla Port, including the construction of two container terminals and dedicated yards for cargo handling.

The loan agreement, worth RMB2.404 billion (Tk3,592.8975 crore or $335.78 million), was signed on 10 October, according to a press release from the Economic Relations Division (ERD) of the Ministry of Finance.
Alia Meher, joint secretary at the ERD, and Fengjun Tian, assistant general manager of China Exim Bank, signed the agreement on behalf of their respective sides.

Under the project, the Mongla Port Authority, under the shipping ministry, will build two container terminals equipped with modern machinery. The project will also include a container yard, a container delivery yard, and a cargo-handling yard.

China Exim Bank will provide the loan at a concessional interest rate of 2%, with a repayment period of 20 years, including a five-year grace period, the release said.

The project is expected to modernise port facilities and increase cargo-handling capacity at Mongla Port, Bangladesh's second-largest seaport.

Thai business leaders discussed ways to strengthen trade and investment between Thailand and Bangladesh with Finance Minister Amir Khosru Mahmud Chowdhury in Bangkok today (12 October).

A delegation from the Thai Chamber of Commerce and the Board of Trade of Thailand, led by Chairman Dr Poj Aramwattananont, met the minister to explore cooperation in agriculture, fisheries, agro-processing, halal food, tourism, healthcare and manufacturing, as well as greater access for Bangladeshi products to the Thai market.

Prime Minister's Finance and Planning Adviser Prof Rashed Al Mahmud Titumir, PM's Special Assistant on Investment and Capital Market Affairs Tanvir Shahriar Ghani, Finance Secretary Dr Khairuzzaman Mozumder, Economic Relations Division Secretary Shahriar Kader Siddiky, Chairman of the National Board of Revenue Ahsan Habib and Bangladesh Ambassador to Thailand Andalib Elias were present, according to a release issued by the Bangladesh mission in Bangkok.
The Thai Chamber delegation members include Advisers to the Board of Trade of Thailand Vibeke Lyssand Leirvag and Songsang Patavanich, Deputy Secretary General of the Board of Trade of Thailand and Chief of the Working Committee on South Asia Prim Jitcharoongphorn, Deputy Chief of the Working Committee on South Asia Pojjana Paniangvait and Chairman of the Thailand-Bangladesh Business Council Yongyos Pholtanawat.

Bangladesh must make marine resource management a significant contributor to its gross domestic product (GDP) to achieve its target of becoming a trillion-dollar economy by 2034, State Minister for Planning Zonayed Abdur Rahim Saki said today (12 October).

"Equal importance is being given to rail and inland waterways alongside road transport," he said at a seminar titled "Planning Perspective on the Emerging Industries in the Blue Economy Sector of Bangladesh".

The Centre for Bay of Bengal Studies of Independent University, Bangladesh (IUB), organised the seminar at its DMK Lecture Gallery in Dhaka.

Saki said the government had identified shipbuilding, port management and development as priority blue economy sectors, alongside improving connectivity between ports and industrial production centres.

The Prime Minister's Office has a dedicated Blue Economy Cell to improve coordination among institutions working in the sector, he said.

He stressed cooperation among the government, academia and the private sector to develop the blue economy and build a skilled workforce.

"Universities have a crucial role to play in developing the skilled human resources needed to achieve this goal," he said, thanking IUB and its Centre for Bay of Bengal Studies for drawing the government's attention to the issues.

Javed Hosein, a member of the IUB Board of Trustees, said inefficiencies in port operations and logistics were undermining Bangladesh's competitiveness in international trade.

Unloading a 21,000-tonne fuel oil tanker takes three to five days in Bangladesh, compared with four to five hours in Singapore, he said.

Garment exports also take around 95 days to reach their destinations after the fabric is made, compared with 60 days in Vietnam and 32 days in China. Hosein attributed the delays mainly to corruption.

Rear Admiral (retd) Md Khurshed Alam, director of IUB's Centre for Bay of Bengal Studies, delivered the keynote presentation on the prospects of the blue economy and emerging industries.

IUB Vice Chancellor Prof M Tamim delivered the welcome address, while Prof Bakhtiar Ahmed, dean of the university's School of Liberal Arts and Social Sciences, gave the vote of thanks. Marium Binte Hassan Farin, an IUB Environmental Science and Management student, moderated the seminar.

Bangladesh’s readymade garment (RMG) sector is facing mounting challenges as international clothing retailers and brands diversify their sourcing destinations. Rising production costs, energy shortages, geopolitical tensions and uncertainty over preferential market access after the country’s graduation from the least developed country (LDC) category are putting pressure on exporters.

The challenges are exposing the limits of a business model built on low production costs and competitive prices. Although many manufacturers have started moving towards higher-value products, the transition remains gradual.

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The situation has raised questions about how well Bangladesh can compete as costs rise and trade preferences come under pressure.

At a recent press conference, Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said several major international retailers and brands that had sourced garments from Bangladesh for years were shifting some work orders to other destinations for strategic reasons.

The prolonged energy crisis has further weakened buyers’ confidence, as some suppliers have struggled to meet shipment deadlines.

Meanwhile, geopolitical conflicts and Houthi attacks on commercial vessels in the Red Sea have disrupted shipping routes connecting Asia with Europe and North America.

With vessels increasingly rerouting around the Cape of Good Hope instead of travelling through the traditional Suez Canal, shipping journeys have become longer and more expensive.

These disruptions have also encouraged buyers to consider sourcing from countries closer to European markets, including Egypt and Ethiopia, to reduce logistical complications and shipping risks.

THE LIMITS OF A LOW-COST MODEL

Bangladesh established itself as a major global manufacturing hub for basic garments from the early 1980s, capitalising on an abundant labour force and low production costs.

That model helped the country become a leading apparel exporter in the world. But rising production expenses, combined with continued pressure on garment prices, are making it increasingly difficult to sustain the same competitive advantage.

In the European Union, Bangladesh’s garment export unit price is less than half that of Vietnam, reflecting, in part, the limited share of higher-value products in the country’s export basket.

Eurostat data show that the average unit price of garments exported from Bangladesh to the EU fell to €13.80 per kilogramme in January-June this year, from €15.07 in the same period of 2025.

By contrast, Vietnam’s average unit price rose to €29 per kg from €25.95 over the same period. China’s garment export unit price to the EU fell by 2.18 percent.

Among major garment suppliers to the EU, Bangladesh remains one of the cheapest, with only one supplier recording a lower average unit price.

Although many Bangladeshi manufacturers have started exporting higher-value products, the transition remains gradual. According to industry estimates, high-end garments account for 30 to 40 percent of the sector’s output, suggesting considerable scope for upgrading.

The government has been considering a gradual phase-out of export cash incentives, which supported exporters during the sector’s development, ahead of Bangladesh’s graduation from the LDC category.

On top of that, following LDC graduation, Bangladesh will face growing pressure to compete without relying on existing preferential trade arrangements.

The possible loss of duty-free market access is a particular concern. Unless Bangladesh secures the European Union’s GSP+ facility or negotiates a free trade agreement (FTA), exporters could face higher tariffs in a market that absorbs nearly 60 percent of the country’s garment exports, worth more than $25 billion annually.

Average duties on RMG products could approach 12 percent, further eroding the price advantage of Bangladeshi suppliers.

LABOUR AND INVESTMENT PRESSURES

The challenges extend beyond production costs and trade policy. After nearly five decades of growth, the first generation of garment entrepreneurs is ageing, while some second- and third-generation successors are struggling to sustain the traditional business model.

Several older factories are closing, and fresh investment in the sector is gradually slowing.

The workforce is also shrinking, particularly among women. Long working hours, demanding workloads and relatively low wages have discouraged younger workers from entering the industry.

According to the BGMEA, women made up roughly 80 percent of Bangladesh’s garment workforce between 1980 and 1994. The figure fell to 70 percent by 2005 and to around 53 percent in both 2021 and 2023, according to studies by the Ethical Trading Initiative, GIZ, BRAC University and the Bangladesh Institute of Development Studies (BIDS).

Industry insiders say younger workers increasingly prefer occupations such as driving auto-rickshaws or operating small shops, which they perceive as offering “greater flexibility and a more comfortable lifestyle”.

Automation and artificial intelligence are adding another dimension to the challenge, as factory owners adopt new technologies to reduce costs and remain competitive.

Meanwhile, some female garment workers have moved to countries such as Jordan, attracted by higher salaries, greater dignity and better employment benefits.

Despite these difficulties, Bangladesh has made significant progress in workplace safety and compliance. Inspections and remediation initiatives under the Accord and Alliance have improved factory safety standards, helping strengthen the country’s international reputation.

However, improved compliance alone will not guarantee continued competitiveness. Exporters must also contend with rising costs, supply-chain disruptions and the risk of losing preferential access to major markets.

THE WAY FORWARD

Bangladesh retains important advantages, including substantial installed production capacity and a large, experienced workforce capable of serving international retailers and brands.

The challenge is to build on these strengths while reducing dependence on price competition in basic garments.

One option is to diversify export destinations. Markets such as India, Japan, South Korea, Malaysia, Brazil and Argentina could help reduce dependence on traditional Western markets.

Bangladesh has been pursuing trade agreements to preserve preferential access after LDC graduation. These initiatives include an Economic Partnership Agreement with Japan and a Comprehensive Economic Partnership Agreement with South Korea, alongside negotiations with other countries.

According to BGMEA’s Mahmud, international buyers had become concerned about concentrating too much of their sourcing in Bangladesh, prompting them to diversify their supply chains.

Nevertheless, Bangladeshi exporters are increasingly targeting Asian markets, particularly Japan, India and South Korea.

He added that the BGMEA had lobbied the Ministry of Commerce to negotiate FTAs with countries such as Brazil and South Africa, where Bangladeshi exports face tariffs exceeding 25 percent. Such agreements could help exporters secure zero-duty access.

The association has also urged the government to negotiate with the United States to waive the 10 percent duty on garments using US cotton and man-made fibres. Expanding exports of higher-value man-made fibre products could further improve the sector’s prospects.

However, market diversification and trade agreements will need to be accompanied by improvements in domestic production conditions.

Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said the garment industry was confronting numerous domestic and international challenges, with rising business costs being a central concern.

He emphasised that Bangladesh must strengthen its competitiveness by reducing production expenses, increasing prices per unit through value addition, ensuring adequate energy supplies and lowering logistics costs.

The sector’s long-term sustainability will ultimately depend on whether Bangladesh can move beyond its traditional reliance on low-cost production, according to the economist.

Modernising factories, upgrading products, diversifying markets and securing favourable trade arrangements will be crucial as the country navigates the post-LDC era, he said.

The Bangladesh Securities and Exchange Commission (BSEC) will publish a draft of the revised initial public offering (IPO) rules within the next couple of days for public consultation, aiming to make the process of listing new companies more effective and investment-friendly.

BSEC Chairman Masud Khan disclosed this today while addressing a seminar at the DSE Multipurpose Hall, organised to mark World Investor Week 2026.

He said the commission was working on several important initiatives to develop and deepen the country’s capital market, including reforming IPO rules, framing direct listing regulations, promoting open-end mutual funds and introducing new investment products.

Once implemented, the initiatives are expected to expand capital market activities and create more investment opportunities, he added.

Emphasising investor protection, the BSEC chairman said it was essential to scrutinise companies’ financial information and assess their fundamentals before allowing them to raise capital through IPOs.

Investors should carefully examine a company’s financial statements, cash flow from operating activities and actual financial capacity before making investment decisions, he said.

He also cautioned investors against making decisions based on promises of unusually high returns or unverified information.

Ensuring transparency, accountability and investor confidence in the capital market requires coordinated efforts by the regulator, stock exchanges, media and investors, Masud Khan said.

He expressed hope that the ongoing reform and development initiatives, including the revision of IPO rules, would help make the country’s capital market more efficient and sustainable.

Speaking at the seminar, Dhaka Stock Exchange (DSE) Chairman Mominul Islam stressed the need for effective communication to inform the public about positive initiatives, reforms and development activities in the capital market.

He also underscored the importance of strengthening the institutional capacity, governance and professional efficiency of brokerage houses, merchant banks and asset management companies to build lasting investor confidence.

A transparent, strong and sustainable capital market is essential for supporting Bangladesh’s industrialisation and economic development, he said, calling for coordinated efforts by all stakeholders.

Highlighting the theme of World Investor Week 2026, the DSE chairman called for greater awareness of digital fraud, investment decisions based on reliable information and responsible actions by all concerned to protect investors’ interests.

The seminar was chaired by Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA).

BSEC Commissioners Tanvir Habib Rahman, Advocate Nahid Mahtab, CFA Md Nafiz Al Tarik and Hossain Shahadat, FCA, also attended the event as special guests.

Dhaka stocks fell for another session today (12 October), with nearly 79% of traded companies losing value on the Dhaka Stock Exchange (DSE), as economic uncertainty and weak sentiment kept investors on the sidelines.

The benchmark DSEX index lost 46.2 points, or about 0.85%, to close at 5,404, down from 5,451 in the previous session. Turnover fell 20% from the previous session to Tk453 crore.

Turnover stood at Tk453 crore, down 20.4% from Tk566 crore in the previous trading session, reflecting weaker trading activity amid cautious investor sentiment.

According to DSE market data, 385 issues were traded yesterday. Of them, 303 declined, 47 advanced and 35 remained unchanged.

The DS30 index, which represents blue-chip stocks, fell nine points to 2,095. However, the DSES, the Shariah-based index, rose 12 points to 1,071.

Market participants said gas and electricity shortages are disrupting production and business operations, hurting corporate earnings and profitability. Lower profits could also affect dividend payouts, while rising operating costs are squeezing margins.

Analysts said the market remained under pressure due to weak buying interest and low trading activity. Speculative trading has kept investor interest concentrated in overvalued stocks, while fundamentally undervalued stocks could become more attractive as treasury rates have fallen significantly in recent months.

In its market commentary, EBL Securities said the capital market remained entrenched in a prolonged downward trajectory as concerns over weak corporate earnings, persistent domestic challenges and geopolitical uncertainty continued to erode investor confidence.

The brokerage said market indices remained on a downward trajectory from the beginning of the session as sector-wide sell-offs reflected widespread risk aversion and persistent selling pressure.

On the sectoral front, textile stocks accounted for the largest share of turnover at 25%, followed by general insurance at 10.8% and engineering at 9%.

Financial institutions led sectoral losses, declining 3.6%, followed by mutual funds, which fell 2.9%, and general insurance, down 2.7%. Jute stocks, however, posted the highest sectoral gain of 2.4%.

National Bank led the gainers, rising 8.33%, followed by GBB Power, which gained 8.26%, and Prime Textile Spinning Mills, up 8.21%.

Among the biggest losers, MBL 1st Mutual Fund fell 9.88%, Phoenix Finance 1st Mutual Fund declined 9.76%, and CAPM IBBL Islamic Mutual Fund dropped 9.49%.

Evince Textiles, Beximco and Sonali Aansh Industries were the most actively traded stocks by turnover.

The bearish trend also continued on the Chittagong Stock Exchange (CSE). The CASPI, the broad index of the port-city bourse, fell 84 points to 14,551, while the CSCX declined 53 points to 8,946. Turnover on the CSE stood at Tk29 crore.

A Cabinet meeting today (12 October) discussed expanding the use of solar power as a renewable energy source and accelerating the implementation of ongoing development projects.

The meeting was held at the Secretariat in the afternoon with Prime Minister Tarique Rahman in the chair, said a release issued by the PM's Press Wing.

The meeting emphasised expanding the use of renewable energy in the country's energy sector and speeding up the implementation of ongoing development projects.
Various government activities and development-related issues were also discussed at the meeting.

BRAC Bank has been granted permission to appoint up to three representative directors on behalf of a single shareholder company, following Bangladesh Bank's relaxation of a provision of the Bank Company Act, 1991.

In a circular issued today (12 October), the central bank said it had relaxed Section 23(1)(kakaka) of the Bank Company Act, 1991, for BRAC Bank under the powers conferred by Section 121 of the same law.

As a result, a shareholder company holding 10% or more, but no more than 50%, of the bank's shares may appoint up to three representative directors to its board.

Under Section 23(1)(kakaka) of the Bank Company Act, a single institution or company is not permitted to appoint more than one representative director to a bank's board. Under the existing provision, therefore, a shareholder company can appoint only one representative director.

Bangladesh Bank's decision relaxes this restriction specifically for BRAC Bank. However, no single institution will be allowed to appoint more than three representative directors.

A Bangladesh Bank official said BRAC owns 46% of BRAC Bank's shares. Under the existing law, the organisation could not appoint multiple representative directors to the bank's board. With the provision relaxed for BRAC Bank, it will now be possible for BRAC to appoint more than one representative director, subject to the limit of three.

Bangladesh Bank has proposed three mechanisms to facilitate remittance transfers by Bangladeshi migrant workers in the Maldives, including the use of Maldivian rufiyaa, travel-related transactions and a bilateral currency swap arrangement.

In a letter dated 8 October to Ahmed Munawar, governor of the Maldives Monetary Authority (MMA), Bangladesh Bank Governor Md Mostaqur Rahman said Bangladeshi workers continued to face difficulties sending their earnings home despite efforts to strengthen formal foreign exchange channels in the Maldives.

He proposed cooperation between the two monetary authorities to establish safe, efficient, transparent and cost-effective mechanisms for transferring workers' earnings through formal banking channels.

Under the first proposal, Bangladesh Bank wants to explore the use of Maldivian rufiyaa through an appropriate arrangement under the Asian Clearing Union (ACU). The corresponding funds would be paid to beneficiaries in Bangladesh in taka through authorised dealer banks.

The second proposal involves allowing licensed banks and money transfer operators in the Maldives to make eligible travel-related payments in rufiyaa for Bangladeshi nationals travelling to the country. In Bangladesh, authorised dealer banks could issue taka-denominated cards, with settlements handled through an agreed regulatory mechanism.

The third proposal seeks to explore a bilateral currency swap arrangement between Bangladesh and the Maldives to facilitate the repatriation of Bangladeshi workers' earnings.

Bangladesh Bank said the proposed mechanisms would be subject to regulatory approval and compliance with the laws of both countries.

The central bank also expressed its readiness to hold discussions with the MMA through a joint delegation comprising Bangladesh Bank officials and representatives of the Bangladesh Mission in the Maldives.

The proposed meeting would focus on regulatory requirements, operational arrangements and settlement mechanisms for implementing the initiatives.

The BB letter said the proposals would require regulatory approval and compliance with both countries' laws.

According to 2024 data, the Maldives had more than 200,000 foreign workers, including over 100,000 Bangladeshis.

According to Bangladesh Bank's country-wise remittance data, Bangladesh received about $118 million in remittances from the Maldives in FY2025–26, down from $141.1 million in FY2024–25. That represents a year-on-year decline of approximately 16.4%

According to Bangladesh Bank data, Bangladesh received $38.05 million in remittances from the Maldives during the first three months of the current fiscal year.

Challenges in sending remittances from the Maldives

Banks and exchange houses are reluctant to accept the Maldivian local currency directly. As a result, Bangladeshi expatriates have to buy US dollars on the curb market and send the money home through banks or exchange houses.

They also have to pay high commissions to transfer money through formal channels, leaving migrant workers facing financial losses in both the two ways.

Yields on treasury bills fell below 8% in today's (11 October) auction for the first time since October 2023, as excess liquidity in the banking sector and weak private-sector credit demand drove down the government's short-term borrowing costs to their lowest levels in nearly three years.

Treasury bill yields last fell below 8% in October 2023, after which interest rates on Treasury bills and bonds continued to rise.

In the latest auction held today, yields on 91-day, 182-day and 364-day Treasury bills fell below 8%, marking a notable development as yields across all three tenors dropped below the threshold simultaneously.

According to Bangladesh Bank data, the yield on 91-day Treasury bills declined to 7.65%, while those on 182-day and 364-day bills fell to 7.75% and 7.89%, respectively.

On 2 October 2023, yields on the 91-day, 182-day and 364-day Treasury bills stood at 7.45%, 7.60% and 8.25%, respectively.

At the auction held on 4 October this year, the yield on the relevant Treasury bills stood at 8.13%. The latest figures indicate a decline of 48 basis points in the yield over just one week.

Earlier, at the 6 September auction, yields on 91-day, 182-day and 364-day Treasury bills stood at 8.59%, 8.65% and 8.73%, respectively. Although yields declined in several subsequent auctions, the 11 October auction marked the first time in the recent series that all three tenors fell below 8%.

Treasury bills are one of the government's key instruments for raising short-term funds. Lower yields can reduce government borrowing costs, while excess liquidity in banks can increase demand for government securities.

Private-sector credit growth has remained below 5% for six consecutive months, reflecting subdued demand for bank loans.

Meanwhile, surplus liquidity in the banking sector surged 45% over the past year to exceed Tk4 lakh crore, according to a central bank report. However, the vast majority of these funds have been parked in government Treasury bills and bonds rather than flowing into private-sector lending.

GQ Ball Pen Industries, the maker of the once-popular Econo ballpoint pen, has returned to profitability after nine consecutive years of losses, posting a net profit of Tk1.31 crore in FY26 as it cuts operating costs and earns rental income from its commercial property.

The company last reported a profit of Tk1.55 crore in 2016. Its earnings per share (EPS) stood at Tk0.12 in FY26, while its net asset value (NAV) per share was Tk143.60 and net operating cash flow per share Tk0.58, according to the company's disclosure.

Following the earnings disclosure and dividend announcement, the company's share price rose 6.65% to Tk609.30 on the Dhaka Stock Exchange (DSE). Its market capitalisation stood at around Tk510 crore.

Uzzal Kumar Saha, managing director of GQ Ball Pen, told The Business Standard that the company had scaled down operations because of ageing machinery, helping reduce operating costs.

"As our machinery is too old, we are cutting down operations following shareholder approval at the last annual general meeting, which has helped us reduce operating costs," he said.

The company has also benefited from rental income generated by its multi storey commercial building in Uttara, which has provided a steady revenue stream alongside income from investments, he added.

GQ Ball Pen has recommended a 12.5% cash dividend for FY26, up from the 10% cash dividend paid to general shareholders for FY25. The company's annual general meeting is scheduled for 30 November, with 4 November set as the record date.

Despite returning to profitability, the company faces the longer-term challenge of reviving its core pen-manufacturing business, which has lost ground amid intensifying competition and changing consumer preferences.

At its last AGM for FY25, shareholders approved a plan to modernise and replace ageing machinery through a balancing, modernisation, rehabilitation and expansion (BMRE) programme. However, the company plans to finance the initiative from its own resources rather than taking on additional bank loans.

"Currently, bank loans have become costly, with interest rates reaching 15-16%. So, we will implement the BMRE using our own funds, which will take time," Uzzal said.

Once the modernisation programme is completed, the company plans to rebrand its flagship Econo pen to restore its former popularity, he added.

Founded in 1981, GQ Ball Pen Industries once transformed the local writing-instrument market with its Econo brand. The company enjoyed strong growth for nearly three decades, but its business began losing momentum around 2012 as large conglomerates entered the ballpoint pen market with new designs, greater financial resources and stronger marketing capabilities.

In its FY25 annual report, the company acknowledged that competition from large conglomerates had weakened its business and that regaining market share would require substantial investment in new machinery, moulds and marketing.

The company also disclosed that shareholders had advised management at several annual general meetings to invest surplus funds in new industrial ventures. It said it had invested a total of Tk28.17 crore in land, fixed deposit receipts and private and publicly listed companies rather than concentrating its investments in a single sector.

The company acknowledged that returns on investments were not guaranteed and said it would seek to recover investments or minimise losses. It also said it would segregate investments and make provisions where necessary.

Meanwhile, rental income from its 14-storey commercial building in Uttara has emerged as an important source of support for the business. The company said its investment income remained unaffected despite difficulties in its core operations.

According to the company's September shareholding data, sponsors and directors held 37.77% of its shares, institutions 1.47%, foreign investors 0.05% and the general public 60.71%. Listed on the stock market in 1986, the company has paid-up capital of Tk8.92 crore.

A company insider said GQ Ball Pen was established by Qazi Saleemul Huq Kamal and Salma Huq.

Quazi Saleemul Huq, popularly known as Econo Kamal, was a former BNP lawmaker from Magura. In 2018, he was sentenced to 10 years in prison in a corruption case. Following the fall of the previous regime, the Supreme Court acquitted him in the case.

As global economic uncertainty looms preceding the IMF-World Bank annual meetings in Bangkok, Bangladesh prepares to negotiate a fresh loan of up to US$4.0 billion to cushion shocks.

The new government continues discussion for the International Monetary Fund's funding after discontinuing a part of a previous lending package in view of its hard-to-digest terms.

Finance Minister Amir Khosru Mahmud Chowdhury, ministry officials and the Bangladesh Bank governor and officials are attending the meetings, where the country's financing needs and reform commitments will be under discussion.

The talks, scheduled alongside the October 12-18 meetings, will focus on the proposed loan's size and policy conditions, including exchange-rate management, banking-sector reforms, electricity and fertiliser subsidies, and domestic revenue mobilisation, according to finance ministry officials.

"If discussions make sufficient progress, an IMF mission could visit Dhaka later this month, with the government aiming to finalise a new programme by January next year," says one official.

The negotiations form part of a much wider international agenda. Finance ministers, central-bank governors and development policymakers from around the world are meeting as geopolitical conflicts disrupt energy supply, borrowing costs squeeze public finances and rapid advances in artificial intelligence (AI) raise questions about productivity and employment.

Managing Director of the IMF Kristalina Georgieva has warned that high energy prices, rising public debts and the expansion of AI are creating "competing pressures on the global economy".

The meetings are expected to examine how countries can preserve financial stability and sustain growth while managing these risks.

For Bangladesh, the discussions carry direct economic implications. The country is seeking fresh IMF financing after having decided to abandon its previous programme halfway, while continuing to face weak revenue collection, banking-sector vulnerabilities, inflation and pressure on foreign-exchange reserves.

The previous arrangement, initially signed for $4.7 billion in January 2023 and later expanded to $5.5 billion, was negotiated under the Awami League government and subsequently revised during the interim administration.

Bangladesh received $3.8 billion in five instalments, but the sixth tranche was delayed after discussions were suspended in November last year. The new government subsequently sought a successor arrangement.

Finance Minister Amir Khosru Mahmud Chowdhury said in Dhaka last week that the government had terminated the existing programme and would no longer accept its conditions.

"The IMF will give us money, the World Bank will give us money-forget about it. I have terminated the IMF programme, as you have seen. Their conditions are not acceptable to us," he said at an event in the capital some weeks back.

The planned Bangkok negotiations nevertheless indicate that discussions over a new arrangement are continuing, with the government seeking terms it considers more compatible with its economic priorities.

IMF mission chief for Bangladesh Ivo Krznar said in a June-3 statement that a successor arrangement could allow both sides to agree on a programme reflecting the country's current challenges and the new administration's objectives.

He added that any agreement would need to address Bangladesh's balance-of-payments needs and be supported by credible policy commitments, subject to the Fund's procedures and executive board approval.

The scale of the financing request and the associated reforms will be central to the negotiations. Bangladesh could qualify for between $4.0 billion and $5.0 billion based on its IMF quota, according to finance ministry officials.

The Washington-based Fund is expected to seek clearer commitments on revenue collection and time-bound measures to address weaknesses in vulnerable banks, the finance ministry officials said. The Fund also wanting the government to introduce excise duty on fuels to help increase revenue earnings.

The wider economic backdrop makes the outcome particularly important. The World Bank's latest Bangladesh Development Update projects growth of 3.4 per cent in both FY2025-26 and FY2026-27, while revenue collection remains exceptionally low at 8.3 per cent of GDP.

Weak investment, inflation and financial-sector problems continue to weigh on the outlook.

Meanwhile, the World Bank is discussing potential crisis assistance with dozens of countries facing higher energy and fertiliser costs. Its president, Ajay Banga, has said the institution could expand available support if the effects of the global energy shock intensify.

The Bangkok meetings will also feature the World Bank's 'Small AI, Big Jobs' event on October 12 and 'Mobilizing Private Capital for Jobs' on October 14, reflecting the institutions' focus on employment and investment alongside immediate financial risks.

US consumer sentiment ticked down in October, survey data showed Friday, with sharp declines seen among those with lower incomes as cost of living worries in the world’s largest economy soar.

The University of Michigan’s consumer sentiment index stood at 46.3 this month, down from 48.1 in September.
While this marked just a small monthly dip, the preliminary report flagged that “sentiment for lower-income consumers and those with smaller stock portfolios dropped steeply.”Survey director Joanne Hsu added that those groups have fewer resources to withstand price hikes.“Frustration over cost-of-living continues to mount, as consumers across the political spectrum believe that the trajectory of the economy has weakened since the beginning of the year,” she said.October’s consumer sentiment reading was 13.6 percent below the same period last year.

Meanwhile, expectations of inflation ticked up, bolstered by rising costs due to war in the Middle East.

Year-ahead inflation expectations rose from 4.6 percent to 4.7 percent this month, Hsu said.

This is substantially higher than the 3.4 percent reported in February, before US-Israel attacks targeting Iran sparked Tehran’s blockage of the Strait of Hormuz, sending energy costs rocketing.

Prices at US gasoline pumps have since surged, with steeper costs cascading through the US economy.

The benchmark index of the Dhaka Stock Exchange (DSE) commenced the week on a sour note today (11 October) as broad-based selling pressure erased early gains amid investor apprehension over upcoming corporate earnings disclosures and escalating geopolitical risks in the Middle East.

The broad-based DSEX index fell 24 points to settle at 5,451, while the blue-chip DS30 index edged down 2 points to close at 2,103.

Market participation also thinned out, with total daily turnover at the Dhaka bourse slipping 6.64% to Tk568 crore compared to the previous session.

Out of the 385 issues traded, only 79 advanced, while 264 declined and 42 remained unchanged.

Brokerage firms attributed the negative performance to heightened caution among market participants surrounding the fiscal year-end earnings and dividend announcement season of June year-end companies, alongside concerns over the broader macroeconomic outlook.

EBL Securities noted in its daily market commentary that the capital market opened on a positive note with sustained buying interest across the board through mid-session. However, intense profit-taking and liquidations emerged thereafter, eroding earlier gains and ultimately dragging the benchmark index into negative territory at the close.

Sheltech Brokerage Limited echoed similar views, adding that selling pressure intensified after mid-session and pushed the index to an intraday low of 5,451 points.

On the sectoral front, textiles dominated liquidity, accounting for 23.9% of the day's total turnover, followed by the miscellaneous sector at 11.1% and general insurance at 8.8%.

Most sectors posted negative returns, with general insurance taking the hardest hit with a 3.5% correction, followed by mutual funds at 2.9% and life insurance at 2.2%.

On the flip side, paper, fuel and power, and miscellaneous sectors posted modest gains of 1.0%, 0.8%, and 0.6% respectively.

Beximco topped the turnover chart, followed by GQ Ball Pen, Evince Textile, Saiham Textile Mills Limited, and Sonali Aansh Industries Limited.

Aziz Pipes Ltd emerged as the top gainer on the Dhaka bourse, surging 9.96%, while Anlimayarn, Baraka Patenga Power, S Alam Cold Rolled, and National Bank also featured prominently on the gainers' list.

Conversely, MBL First Mutual Fund was the day's worst performer, plunging 10%, followed by Phoenix Finance First Mutual Fund, Exim Bank First Mutual Fund, CAPM IBBL Mutual Fund and First Prime Finance Mutual Fund.

Mirroring the capital's bourse, the Chittagong Stock Exchange also closed lower. The selective CSCX index dropped 17 points to end at 8,999, while the all-share CASPI index slipped 25 points to settle at 14,635.

Gold rose for a second straight session on Friday, touching a one-week high, as bargain buying emerged after bullion fell to two-month low earlier this week, while traders assessed the likelihood of further US Federal Reserve interest rate hikes.

Spot gold rose 1.5 percent to $4,194.36 per ounce by 03:29 p.m. EDT (1929 GMT), heading for a weekly gain of about 1.3 percent.
The metal fell to a two-month low on Wednesday as a stronger dollar and rising US Treasury yields weighed on the non-yielding metal.

US gold futures for December delivery gained 1.4 percent to settle at $4,216.3. Bullion gained due to “bargain hunting at the lows, as a floor has been building in the $4,000-region,” said Rhona O’Connell, head of market analysis at Stone X.

“It is arguable that a further Fed hike is already priced in but so is the expectation for continued official sector net purchases. Without any Black Swan event I find it hard to see gold breaking convincingly higher.”

US 10-year Treasury yields were off over two-decade highs hit on Wednesday.

St. Louis Fed President Alberto Musalem said on Thursday the US central bank [will need to hike rates again to bring inflation back to its 2 percent target](https://www.reuters.com/world/india/gold-rises-softer-dollar-easing-yields-fed-outlook-focus-2026-10-09/).

Traders are pricing in a 19 percent chance of a rate hike in October and an 84 percent probability of at least one 25-basis-point increase by December, according to the CME’s FedWatch tool.

Gold tends to lose its appeal compared to yield-bearing assets in a high interest-rate environment.

“The coming week’s CPI release may act as a catalyst for gold’s next big move... Still-stubborn inflation that pushes the Fed into a steeper rate-hike cycle may force spot gold to re-test the psychological $4,000 support once more,” said Han Tan, chief market analyst at Bybit.

Meanwhile, gold demand in India was sluggish this week as prices rebounded, while trading in top consumer China was subdued during the holiday-truncated trading period.

Bangladesh is exploring a deal to import liquefied natural gas (LNG) and liquefied petroleum gas (LPG) from Algeria amid supply disruptions in the Middle East.

Energy Minister Iqbal Hassan Mahmood held a meeting with Algerian Ambassador to Bangladesh Abdelouahab Saïdani yesterday (11 October) to discuss energy cooperation, including possible memoranda of understanding on LNG and LPG imports, according to a statement from the Ministry of Power, Energy and Mineral Resources.

The meeting also covered preparations for Prime Minister Tarique Rahman's upcoming visit to Algeria. Energy Secretary Md Ziaul Huq was present.

Algeria, a North African country on the Mediterranean coast, has emerged as an alternative petroleum supplier for South Asian countries amid shipping disruptions in the Strait of Hormuz. Its shipping routes to South Asia bypass the strait, offering an alternative to traditional Middle Eastern supply routes.

Algerian LNG and LPG exports have traditionally gone mainly to Europe, but recent geopolitical shifts have prompted South Asian countries to diversify their energy sources.

The Dhaka Stock Exchange (DSE) PLC has launched a month-long cybersecurity awareness campaign throughout October to strengthen digital security among its employees and Trading Right Entitlement Certificate (TREC) holders.

For the first time, the country's premier bourse is observing Cybersecurity Awareness Month through a dedicated initiative aimed at curbing online fraud, promoting secure digital operations and strengthening responsibility for data protection across the capital market.

As part of the campaign, the DSE premises have been decorated with awareness banners and festoons, while employee workstations feature customised desktop wallpapers with security guidelines. The campaign focuses on helping market participants identify and mitigate cyber risks, including suspicious emails, phishing links and malicious software.

The bourse is also conducting interactive online training sessions via Zoom for TREC holders, grouping participants according to their operational needs. An online quiz competition has been launched to assess their cybersecurity knowledge, with top performers set to receive recognition.

TREC holders demonstrating strong cybersecurity compliance will receive certificates at the DSE's regular "Meet and Greet" event to encourage proactive security measures at brokerage houses.

The campaign is being implemented through collaboration among several DSE departments. The Information Security Section (ISS) is leading the initiative by developing training modules, preparing awareness materials and coordinating the quiz competition, with support from the IT infrastructure, network, public relations and publications departments, and the Office of the Managing Director.

DSE authorities said technical safeguards alone were not enough to protect a technology-driven capital market, stressing that user awareness and responsible digital behaviour are equally important. The bourse expects the initiative to strengthen cybersecurity awareness among stakeholders and help build a secure, reliable and resilient digital stock exchange.