State Minister for Local Government, Rural Development and Cooperatives Mir Shahe Alam today (Saturday) said the country's foreign exchange reserves had increased by US$11 billion over the past seven months to reach US$37 billion despite various economic challenges.

He also said that the country's overall debt burden had declined from 37 percent to 32 percent during the period, BSS reports.

"Foreign exchange reserves stood at US$20 billion when the then autocratic government was ousted on August 5, 2024, following the mass uprising," he said.

The state minister made the remarks while addressing a discussion on formulating strategies to install solar power systems through cooperative societies in urban and rural areas at the Samabaya Bhaban in Agargaon this afternoon.

Local Government, Rural Development and Cooperatives Minister Dr Abdul Moyeen Khan attended the programme as the chief guest.

Shahe Alam said the interim government led by Dr Muhammad Yunus had increased foreign exchange reserves to US$26 billion over two years, followed by a further rise of US$11 billion in the past seven months, bringing the total to US$37 billion.

Referring to a call by an opposition party leader to halt remittance flows, he said the appeal had failed to disrupt the inflow of remittances.

"Remittances worth Tk 7,776 crore entered the country over the past five days despite the call," he said.

The state minister said expatriate Bangladeshis understood the country's political situation, recalling that remittance flows had stopped during the Liberation War, the anti-Ershad movement in 1990 and the recent movement that led to the fall of the fascist government.

Criticising the opposition's role in parliament and outside, Shahe Alam alleged inconsistencies between its statements in the Jatiya Sangsad and its public criticism of the government.

He said opposition leaders had acknowledged in parliament that the BNP had inherited crises in the oil, gas and electricity sectors, while criticising the government over power and gas shortages in their public statements.

Highlighting the potential of solar energy to help address the country's electricity crisis, Shahe Alam said Bangladesh was currently supplying 1,872 megawatts of solar-generated electricity to the national grid.

He said the government would purchase surplus electricity generated by household solar power systems and called for coordinated initiatives through the Department of Cooperatives to expand solar energy use in both urban and rural areas.

Senior officials of the Department of Cooperatives and representatives of relevant ministries and departments attended the meeting.

The Bangladesh Export Processing Zones Authority (BEPZA) has launched three dedicated country desks for investors from China, South Korea and Japan to provide faster, more targeted and effective services.

The desks were inaugurated at the ‘Meet the Investors’ event held in Dhaka yesterday.

Investors from 38 countries have invested in the eight export processing zones (EPZs) and two economic zones under BEPZA. China, South Korea and Japan are the three largest sources of investment in these zones.

The dedicated desks aim to strengthen communication with existing and prospective investors from the three countries, offer direct assistance tailored to their investment-related needs and streamline the investment process.

They will provide relevant information, guidance and necessary support to existing and prospective investors interested in investing in BEPZA’s EPZs and economic zones.

Welcoming the participants, BEPZA Executive Chairman Major General Mohammad Moazzem Hossain said the gathering would help strengthen partnerships, hear directly from investors, understand their concerns and expectations, and identify ways to make Bangladesh’s investment environment more competitive and business-friendly.

In the 2025-26 fiscal year, BEPZA signed investment agreements with 36 enterprises, while exports from its zones reached $8.41 billion, marking a 2.22 percent year-on-year increase, the executive chairman said.

He also described the designation of BEPZA Economic Zone-1, BEPZA Economic Zone-2, Jashore EPZ and Patuakhali EPZ as full-fledged zones as another significant milestone of the year.

Expressing optimism about the newly launched country desks, Hossain said the facilities would help build closer relationships with existing investors from China, South Korea and Japan and encourage them to expand their businesses. They would also play an important role in attracting new investment to BEPZA’s zones, he added.

Representatives of the Korea-Bangladesh Chamber of Commerce and Industry, the Bangladesh-China Chamber of Commerce and Industry, and the Japan-Bangladesh Chamber of Commerce and Industry attended the event, along with more than 100 local and foreign investors.

Total investment in BEPZA’s zones stands at approximately $7.50 billion, while cumulative exports have reached around $130 billion. The zones account for around 20 percent of Bangladesh’s total exports.

Inflation rose to 8.34 percent in September from 8.26 percent in August, ending two consecutive months of gradual easing as higher food costs pushed up overall consumer prices.

Food inflation increased to 7.22 percent last month from 7.02 percent in August, according to data released by the Bangladesh Bureau of Statistics (BBS) yesterday.
In contrast, non-food inflation eased slightly, falling from 9.32 percent in August to 9.30 percent in September.

Following the fuel price hike in the third week of September, price pressures mounted in both rural and urban areas. Rural households, however, faced higher price increases, with inflation rising to 8.38 percent last month, compared with 8.26 percent in cities.

Despite the monthly rise, September inflation was lower than the 8.36 percent recorded in the same month last year.

This means the disinflation process remains fragile, according to Deen Islam, a professor at the Department of Economics at Dhaka University.

Fahmida Khatun, a distinguished fellow at local think tank Centre for Policy Dialogue (CPD), said, “A small year-on-year decline in inflation is a good sign. But this does not mean prices have fallen.”

“People’s living standards will improve only when price hikes ease consistently for a longer period and wages begin to catch up,” she said.

Sectoral inflation data for September showed notable cost increases across key spending categories.

Restaurant and hotel prices recorded the steepest increase at 13.26 percent, up from 12.49 percent in August. Housing and utility expenses rose by 9.81 percent, while transport costs increased by 9.46 percent.

Over the 12-month period to September, the national moving average inflation rate stood at 8.65 percent.

For the current fiscal year, the Bangladesh Bank (BB) set an inflation target of 7.5 percent. The central bank in late September kept its main interest rate unchanged at 9.5 percent for the October-December quarter, saying inflation risks remained large and the economy was weak.

The BB said the risks included higher global energy prices, the ongoing conflict in the Middle East, the recent fuel price hike and implementation of the new pay scale for public employees.

The central bank said it would wait and watch before cutting rates again. On August 2 this year, the BB lowered the policy rate by half a percentage point to 9.5 percent after years of tightening.

According to the recently released World Bank’s South Asia Economic Update, inflation is projected to remain high at 8.6 percent in fiscal year 2026-27, staying above the BB’s target.

The Washington-based multilateral lender says surges in global energy prices, higher import costs and local currency depreciation are behind stubbornly high inflation in Bangladesh.

The World Bank said Bangladesh is South Asia’s most dependent economy on fertiliser imports, with such imports exceeding 0.4 percent of GDP, making its agricultural sector and food prices vulnerable to spikes in input costs.

The lender noted that Bangladesh used fuel subsidies to slow the direct pass-through of global oil price increases into domestic retail consumer prices as it sought to tackle inflation.

Prof Deen Islam said the government’s immediate priority should be to ensure that persistent high inflation does not impose a disproportionate burden on low-income households.

“Monetary and fiscal policies need to work together, while targeted social protection should shield the most vulnerable from the effects of elevated food and essential-service prices,” he added.
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Similarly, Fahmida said the government should expand social safety net programmes during this difficult time.

“Programmes such as open market sales (OMS) should be available to poor and low-income households. Targeted energy subsidies should be given to vulnerable households,” said the economist.

The 16th Bangladesh-India Joint Working Group on Trade will be held in New Delhi today and tomorrow, with Bangladesh set to raise several bilateral trade issues, including non-tariff barriers, anti-dumping duties on jute goods and land port-related matters.

A 10-member government delegation led by Ayesha Akther, additional secretary to the commerce ministry, left the country yesterday to attend the meeting.
Mohammad Abdur Razzaque, chairman of RAPID, said the meeting was a constructive approach by both countries at a time when bilateral relations remain strained.

“We will raise almost all the trade-related issues from Bangladesh’s side. But we do not know yet what the Indian side may raise. However, this is a platform for discussion, not a decision-making meeting,” a delegation member, requesting anonymity, told The Daily Star over the phone.

Among the major issues, Bangladesh will discuss anti-dumping duties on Bangladeshi jute goods, rail freight and the normal movement of goods between the two countries.

Non-tariff barriers are major obstacles to bilateral trade and will also be discussed. However, the official said the Comprehensive Economic Partnership Agreement (CEPA) is not on Bangladesh’s agenda.

The bilateral trade deficit will also come up for discussion, as India’s exports to Bangladesh are much higher than Bangladesh’s exports to India.

Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said the meeting was a constructive approach by both countries at a time when bilateral relations remain strained.

Trade relations between Bangladesh and India should be normal, as the two neighbouring countries are important sources of raw materials and finished goods for each other, he said. India could become a larger market for Bangladesh if trade barriers are reduced.

Once Bangladesh loses preferential market access after graduating from the group of Least Developed Countries (LDCs), Bangladeshi exporters may face a 20 percent duty on exports to India, compared with the current zero rate.

“It will come as a shock for Bangladeshi exporters,” he said.

Bangladesh mainly exports garments to India, although agricultural and fisheries products are also exported there, he added.

In fiscal 2025-26, Bangladesh exported goods worth $1.75 billion to India and imported goods worth $10.96 billion, according to National Board of Revenue (NBR) data.

After China, India is Bangladesh’s second-largest source of imports, with local traders importing large volumes of industrial raw materials, fabrics, yarn and cotton.

Bangladesh wants to increase bilateral trade with Indonesia to more than $10 billion, with Commerce Minister Khandakar Abdul Muktadir calling for greater exports and progress on a long-stalled preferential trade agreement.

Muktadir said market-access barriers need to be removed and Bangladesh's exports of ready-made garments, pharmaceuticals and agricultural products expanded to narrow the large trade imbalance between the two countries.

The issues came up during a meeting between Muktadir and Indonesian Deputy Foreign Minister Muhammad Anis Matta at the Ministry of Commerce on Wednesday.

"Bangladesh imports about $3.5 billion worth of goods from Indonesia," the commerce minister said.

"Meanwhile, Bangladesh exports only about $56 million worth of goods to the country. Bangladesh needs to increase its exports to reduce this trade deficit.

"If market-access barriers are removed, it is possible to increase trade between the two countries to more than $10 billion."

The meeting also covered the proposed preferential trade agreement (PTA), a Comprehensive Economic Partnership Agreement (CEPA), energy cooperation, mutual recognition of halal certificates, and access to the Indonesian market for Bangladeshi potatoes, medicines and vaccines.

Muktadir said Bangladesh produces pharmaceuticals to international standards and exports them to more than 100 countries.

He sought Indonesia's cooperation in easing procedural complications, including drug registration requirements, to help increase Bangladeshi pharmaceutical exports to the Indonesian market.

Matta welcomed a proposal to organise a standalone exhibition of Bangladeshi pharmaceutical products in Jakarta and assured Bangladesh of cooperation in arranging the event.

Bangladesh and Indonesia have held four rounds of talks on the PTA but have yet to agree on duty-free market access for ready-made garments. The negotiations have been stalled since 2023.

Matta acknowledged competition between the textile and garment industries of the two countries but said the problems needed to be identified and steps taken to resolve them.

He proposed a ministerial-level meeting between the two countries during the international trade fair in Indonesia from Oct 14-18. He also invited Muktadir and a Bangladeshi delegation to attend the event.

Indonesian Ambassador to Bangladesh Listyowati and other officials from the two countries also attended the meeting.

The Executive Committee of the National Economic Council (ECNEC) on Wednesday approved Rampal solar power plant and 12 other development projects involving Tk 162.08 billion ( Tk 16,207.55 crore).

The projects included 10 new schemes, two revised ones and one involving an extension of the project period, UNB reports.

The government will provide Tk 10,600.80 crore from its own funds, while Tk 4,081.85 crore will come as project loans and Tk 1,524.91 crore from the concerned organisations’ own funds.

Prime Minister and ECNEC Chairperson Tarique Rahman presided over the meeting held at the Secretariat.

Of the approved projects, seven are under the Ministry of Local Government, Rural Development and Co-operatives.

These include a project to improve road infrastructure and drainage systems in 18 wards of five newly incorporated regions of Dhaka South City Corporation; infrastructure development in important areas of Rangpur City Corporation; rehabilitation of damaged roads in Rangpur City Corporation; and construction of roads, drains and footpaths in zones 1 to 8 of Gazipur City Corporation.

The ECNEC meeting also approved a project to construct the 442MW peak solar power plant at Rampal under the Ministry of Power, Energy and Mineral Resources.

It also approved a project for developing women’s skills and creating entrepreneurs through cooperatives, a rural infrastructure development project in Sirajganj, Bogura and Naogaon districts, and the second phase of the Important Urban Infrastructure Development Project under its second revision.

The Ministry of Shipping’s project for Bangladesh Inland Water Transport Corporation (BIWTC) was approved in its third revision.

The project involves procuring 35 commercial vessels and eight auxiliary vessels and constructing two new slipways.

Besides, a railway project for expanding the capacity of Bangladesh Railway by procuring 30 metre-gauge diesel-electric locomotives was also approved.

The ECNEC meeting also approved a Foreign Ministry project to renovate and modernise the purchased chancery building in Paris, France, so that it can be put into use.

Two projects under the Road Transport and Bridges Ministry also received approval. One involves constructing the Second Karatoya Bridge at the 15th kilometre of the Bhajanpur (Nijbari)-Atorkhari-Mayanguri-Amtali-Mirgh-Panchagarh (Z-5060) road and the other is the second revised Thanchi-Rumaikri-Madak-Likri road construction project.

Meanwhile, the ECNEC was informed about a project costing less than Tk 50 crore that had already been approved by the Planning Minister.

The project involves re-excavating the Nandahar and Harabati rivers and the Nungola and Kharoa canals in Joypurhat district.

Dhaka Chamber of Commerce and Industry (DCCI) and the Economic Reporters’ Forum (ERF) Institute signed a memorandum of understanding (MoU) on Wednesday to strengthen bilateral cooperation and undertake joint research on Bangladesh’s economy.

DCCI President Taskeen Ahmed and ERF President Doulot Akter Mala signed the agreement at the DCCI auditorium on behalf of their respective organisations.

Under the MoU, the two organisations will collaborate on training programmes, workshops, seminars, research and knowledge-sharing activities, with a particular focus on strengthening the capacity of journalists covering economic issues.

Speaking at the signing ceremony, DCCI Senior Vice President Razeev H Chowdhury said economic reporting plays a vital role in helping entrepreneurs and policymakers formulate effective responses to emerging economic challenges at home and abroad.

He expressed hope that joint initiatives by the DCCI and ERF would contribute to enhancing the professional skills of economic journalists.

ERF President Doulot Akter Mala said the DCCI has long-standing experience and a strong reputation in conducting research on economic and business issues.

She expressed hope that the MoU would provide opportunities for the two organisations to jointly conduct research on Bangladesh’s economy, particularly trade and investment.

Such joint research would help promote informed policymaking, necessary economic reforms and private-sector development, she said.

DCCI Secretary General Dr A K M Asaduzzaman Patwary, ERF General Secretary Abul Kashem and members of the ERF Executive Committee, among others, were present at the signing ceremony.

National Board of Revenue (NBR) high-ups, however, harbour doubts about accuracy of such huge claim buildups and say scrutiny is needed before claim settlement.

Exporters and manufacturers deplore that they cannot also submit new applications for VAT refunds as the VAT-refund module remains disabled.

Refund of VAT, literally, remains stalled due to the disabled online module that is mandatory for submitting refund applications.

Businesses without bonded-warehouse facilities are the worst sufferers.

Since November last year, filing refund applications through the online system has been mandatory. No manual application is allowed for VAT refunds. However, no digital module is currently active for submitting refund applications.

Businesses view this dilemma as a sign of the revenue authority's unwillingness to allow VAT provided for by the law.

However, a National Board of Revenue (NBR) high-up found the existing Tk 150 billion refund claims suspicious and would need scrutiny.

A senior VAT official has said the refund claim is huge and abnormal, raising doubts that some businesses may be showing lower selling prices or lower value addition.

"Currently, we are allowing refund of Advance Tax (AT) to be claimed through applications," he said.

Naimul Huda, Executive Director of Incepta Pharmaceuticals, has said the company has a pending VAT-refund claim of Tk 120 million dating back to 2019.

"We neither give entry in the system nor claim the AT manually," he told The Financial Express.

VAT consultant Md Daud Faraizy, however, has said the VAT authority is not even allowing businesses to submit application.

"The NBR has no timeline to approve refund applications, but businesses must submit refund applications within six months, in general, of the creation of the refund," he said.

A VAT-registered manufacturer or importer can usually adjust AT in its VAT return. If an eligible surplus remains, it may apply for a cash refund under the refund rules.

Also, an unregistered importer may apply for an AT refund if the goods are for its own final use and will not be transferred to anyone else.

VAT and SD refunds claimed by exporters, deemed exporters, back-to-back LC exporters, and organisations having closed their operations in Bangladesh, on the import of raw materials remained blocked due to dysfunctional modules in the VAT online system.

Businesses find the inactive refund module a violation of existing VAT law provisions on refunds, as even the submission of refund applications remains blocked.

A number of businesses having supplied raw materials for megaprojects are not receiving their refunds despite having applied to the NBR years ago.

A senior official of the NBR says the AT-refund process has been made smoother, but VAT-refund claims by exporters and local manufacturers remain stalled as the NBR decided to investigate the claims.

VAT expert Daud Faraizy, however, has said the refund claims have accumulated over the last six years because businesses were not allowed to avail themselves of the facility.

"Now the amount has turned into a large sum, which the revenue authority finds difficult to pay," he said, explaining that if the amount were divided, the refund demand in each year would have been negligible.

In the VAT online system, it has been mentioned that businesses cannot claim refunds for VAT, except AT.

On November 11, 2025, the NBR introduced online VAT refund by establishing interconnectivity with the Integrated VAT Administration System and Bangladesh Electronic Fund Transfer Network. It scrapped the provision for manual refund application, asking all taxpayers to apply for refunds using the new module.

In the module, the NBR inserted a 27-point checklist for refund processing, including a ceiling for claiming refunds, updated return submission and other compliances.

Mr Faraizy says the law and rules allow online refund application but the provision has not been followed due to the absence of a functioning online system.

Businesses with stuck-up refund claims include Apex Yarn Dyeing Limited, Ispahani Tea, DBL Ceramics, CEAT AK Khan ltd, KSRM, Confidence group, SAMUDA, Primitak, Hawlader Yunus & Co, Ranks Telecom, Walton Hi-Tech Industries, Incepta Pharmaceuticals, Abul Khair Consumer Products, BSRM Wires, Kabir Steel Ltd, Madina Garments, SR Shipping Ltd, Kiswan Snacks, Confidence Infrastructure, Global Steel and Engineering, Protik Ceramics, Karnaphuli Shoes Industries, Fulkoli Bread and Biscuits Ltd, Banoful and Company, Universal Sweater, and Pacific Workwears.

Bangladesh's apparel exports to the US declined in January-August 2026, but the rate was less than those of several major Asian competitors as overall US clothing imports contracted amid higher prices.

US apparel imports fell 7.42% year-on-year to $49.08 billion in the first eight months of 2026, while imports from Bangladesh declined 4.43% to $5.39 billion, according to the US Department of Commerce's Office of Textiles and Apparel (Otexa).

Shipments from China and India fell 29.39% and 26.44%, respectively, while Pakistan declined 3.83% and Vietnam 0.76%. Imports from Cambodia and Indonesia, meanwhile, rose 6.91% and 2.58%.
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Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Bangladesh's smaller decline was encouraging amid the broader market contraction.

"US imports have been affected as the prices of goods have increased. In that context, the positive aspect is that our decline is smaller than that of our competitors," he told TBS.

He said export orders were gradually returning, indicating an improving trend.

Tariff advantage supports Bangladesh

Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), attributed Bangladesh's relatively resilient performance partly to its favourable tariff position compared with major competitors such as China.

"Compared with our competitors, our tariff structure is better. Naturally, buyers will want to take advantage of that," he said.

However, Bangladesh needs to move into higher-value apparel and expand man-made fibre production to strengthen its position, he added.

Shovon Islam, managing director of Sparrow Group, said Bangladesh's tariff structure and diversified product range were helping it compete with India and Pakistan, while lead times and raw material availability remained key weaknesses.

Bangladesh is performing better than India and Pakistan and roughly on par with Indonesia and Cambodia, but remains behind Vietnam, he said.

Vietnam benefits from shorter lead times and a stronger position in higher-value athletic and performance apparel made from man-made fibres, he added.

Product diversification key to bigger gains

Otexa data show Bangladesh's apparel import volume fell 2.75% in square-metre equivalent terms during January-August, while its average unit price declined 1.73%.

China and India recorded much steeper volume declines of 21.61% and 24.91%, respectively. Vietnam's volume fell 0.18% and Pakistan's 0.27%, while Cambodia and Indonesia posted growth of 7.18% and 8.53%.

Bangladesh's average unit price decline was smaller than China's 9.93% and India's 2.04%, but the overall average unit price of US apparel imports rose 1.71%.

Shovon said Bangladesh needs to expand higher-value and man-made fibre production to capture more of the shifting US demand.

He said Chinese manufacturers were increasingly diversifying production towards Vietnam and Cambodia as their access to the US market weakened, creating an opportunity for Bangladesh to attract investment.

Chinese investors remain interested in Bangladesh, but concerns over the political and policy environment, bank financing, energy supply and law and order have slowed investment, he said.

Bangladesh had previously attracted around 250 Chinese investors, mainly in garments and textiles, but the momentum has weakened since 2024, Shovon added.

August rebound offers relief

Bangladesh's RMG exports to the US surged 25.65% year-on-year to more than $817 million in August, according to Bangladesh Export Promotion Bureau data compiled by Bangladesh Apparel Voice.

Exports to the US totalled $1.61 billion in July-August, up 11.42% year-on-year.

The August rebound is a positive signal after a weak first half, but sustaining the momentum will depend on converting Bangladesh's tariff advantage into longer-term sourcing gains, Shovon observed.

With Vietnam remaining resilient and Cambodia and Indonesia expanding, Bangladesh is holding its ground in the US market. However, gaining a larger share will require improvements in competitiveness beyond tariffs, including shorter lead times, greater product diversification and stronger man-made fibre capacity.

The government is seeking $6.47 billion in foreign loans from multilateral development banks and bilateral development partners to implement 13 new projects, including upgrading the Dhaka-Chattogram highway to six lanes, constructing MRT Line-2 and procuring 300 electric buses.

The projects have a combined estimated cost of Tk1,06,439 crore, of which Tk79,583.47 crore has been proposed as foreign financing.
The proposals will be placed before the Foreign Assistance Search Committee today (8 October) to identify potential development partners and explore financing arrangements, according to officials at the Economic Relations Division (ERD).

The meeting will be chaired by ERD Secretary Shahriar Quader Siddique.

Dhaka-Chattogram highway expansion

Among the largest proposals is upgrading the 232.76-kilometre Dhaka-Chattogram highway to a six-lane access-controlled expressway at Tk71,850 crore, including Tk55,080 crore in foreign loans and Tk16,770 crore in government funding.

The project has received in-principle Planning Commission approval, with completion targeted for January 2027-December 2032, subject to financing.

The RHD has completed a feasibility study and detailed design for the six-lane expressway, with service lanes on both sides for local and slow-moving traffic and designated entry and exit points.

Existing intersections will be converted into interchanges, with flyovers and underpasses, while urban sections will be elevated to ease congestion.

The Asian Development Bank (ADB) has expressed interest but may not finance the project alone. An ADB-led co-financing arrangement with the Asian Infrastructure Investment Bank (AIIB) or Japan International Cooperation Agency (Jica) is therefore being considered, with the ERD to decide.

Cumilla-Brahmanbaria highway

The government is seeking a new development partner to four-lane the Cumilla (Mainamati)–Brahmanbaria (Dharakhar) national highway, dropped from India's third Line of Credit (LoC-III).

The project will cost Tk7,188.66 crore, including Tk4,378.67 crore in government funding and Tk2,810.65 crore in foreign loans. The government is considering multilateral and other development partners, with the ADB expressing preliminary interest.

The Mainamati-Sarail highway is a key link between Chattogram and Sylhet and is expected to support industrial and agriculture-based activities along the route.

Approved on 13 September 2022 under joint Bangladesh-India financing, the project was scheduled for 1 July 2022-30 June 2026 but remains incomplete. Once implemented, it is expected to increase road capacity and ease passenger and goods movement between the two regions.

Additional financing for Gabtoli-Narayanganj MRT

The government also plans to build MRT Line-2 from Gabtoli to Narayanganj, with a branch from Nayabazar to Sadarghat. The project is estimated to cost Tk60,962 crore, including Tk45,924 crore in proposed foreign financing.

The World Bank has already agreed to provide a $72 million loan, but additional financing will be needed. The government will therefore approach other development partners for co-financing, with the project placed before the Foreign Assistance Search Committee to explore additional foreign loans.

300 electric buses procurement

The government plans to replace diesel-powered buses in the Bangladesh Road Transport Corporation (BRTC) fleet with electric buses under a Tk2,713 crore project proposed for July 2026-June 2029.

The project envisages procuring 300 air-conditioned single-decker electric buses, with the Road Transport and Highways Division overseeing implementation and BRTC as the executing agency.

The government will provide Tk703 crore, while Tk2,009.77 crore is proposed as a development partner loan, with South Korea's Economic Development Cooperation Fund (EDCF) named as the potential financier.

Solar power, urban projects

The government is also planning to establish two 60MW solar power plants in Payra, Patuakhali, and Munshiganj to expand the use of renewable energy, at a combined estimated cost of around Tk1,505 crore, with foreign financing proposed for both projects.

The Payra solar power plant has an estimated cost of Tk783 crore, while the proposed Munshiganj plant is expected to cost Tk718.72 crore.

Proposals for foreign financing for three urban development projects will also be placed before the committee.

These include Tk36.85 crore for the "Integrated Project for Revitalization of Old Dhaka", Tk4,447 crore for the "Rayerbazar Sewerage System Development Project" and Tk3,050 crore for the "Urban Water Supply and Sanitation Project in Selected City Corporations and Municipalities of Bangladesh (UWSSP)".

The ERD will assess potential development partners and financing options for the projects before proceeding with negotiations with the respective lenders.

The country's gross domestic product or GDP growth accelerated to 4.6 per cent in the fourth quarter of the fiscal year 2025-26, helped by stronger industrial and services activity, according to data released by the Bangladesh Bureau of Statistics (BBS) on Wednesday.

The quarterly growth rate, measured at constant prices, was more than 2.55 percentage points higher than the corresponding quarter a year earlier, showing a broad-based improvement in economic activity towards the end of the fiscal year which many believe happened due to peaceful political atmosphere.

Despite the stronger final-quarter performance, the economy's average real GDP growth for four quarters stood at 3.68 per cent in the fiscal year 2025-26, reflecting the weaker pace of activity during much of the year.

At market prices, GDP during the April-June quarter of fiscal year 2025-26 was estimated at Tk 16,117 billion, while GDP at constant or real prices stood at about Tk 9,222 billion, the BBS data showed.

The performance was uneven across the major sectors of the economy during the fourth quarter.

Agriculture, which remains an important source of employment and rural income, recorded a 1.73 per cent contraction during the quarter, compared with growth of 3.19 per cent in the same period a year earlier.

The sharp deterioration indicates continued weakness in agricultural output and its contribution to overall economic expansion.

The services sector, which accounts for more than half of the country's economic output, performed considerably better.

Growth in services reached 4.28 per cent, an increase of 2.02 percentage points from the corresponding period of the previous fiscal year.

Industry was the strongest-performing major sector in the quarter under review.

Industrial output expanded by 6.52 per cent in the fourth quarter ending June 2026, up by about 5.6 percentage points from the same quarter of fiscal 2024-25.

The divergence between agriculture and the other two major sectors suggests that the late-year recovery was driven mainly by industrial production and services rather than by a broad-based rebound across the economy.

The country's industrial sector recorded a significant increase in growth in the fourth quarter of FY2025–26, while growth in the agriculture sector declined and the services sector also slowed compared with the previous year.

At constant prices, the agriculture sector grew 1.73% year-on-year in the fourth quarter of the 2025–26 fiscal year.

The sector had recorded 3.19% growth in the same quarter of the previous fiscal, meaning its growth declined by 1.46 percentage points year-on-year in the fourth quarter.

In the first three quarters of FY2024–25, agriculture sector growth stood at negative 0.12%, 1.90% and 4.61%, respectively. In contrast, this sector grew 2.11%, 3.68% and 1.74% in the first three quarters of FY2025–26, respectively.

Meanwhile, the industrial sector posted a sharp rebound in the fourth quarter. At constant prices, industrial growth jumped to 6.52% in Q4 of FY2025–26, up from just 0.92% in the same quarter a year earlier.

Industrial growth, however, remained volatile in the first three quarters of the fiscal year. The sector grew 4.80%, 5.78% and 3.33% in the first three quarters of FY2024–25, respectively, compared with 6.82%, 1.27% and negative 0.28% in the corresponding quarters of FY2025–26.

The services sector, too, posted stronger growth in the fourth quarter, rising to 4.28% in FY2025–26 from 2.26% in the same quarter a year earlier.

However, services sector growth lost momentum in the first three quarters of FY2025–26. The sector grew 4.49%, 3.48% and 7.32% in the corresponding quarters of FY2024–25, but growth slipped to 4.51%, 4.45% and 3.52% in FY2025–26.

Overall, the fourth quarter saw stronger growth in industry and services, while agriculture lost ground from a year earlier, underscoring a sharp divergence in sectoral performance across the economy.

Biman signs Airbus deal to buy 10 aircraft Biman Bangladesh Airlines has signed an agreement with the European aircraft manufacturer Airbus for the acquisition of 10 new aircraft as the national flag carrier moves ahead with a major fleet expansion programme.

The latest Airbus package is expected to be worth more than $2 billion, according to sources concerned.

The signing ceremony, titled "Spreading Our Wings Together," was held at a city hotel at 6:30pm today (7 October).
Airbus South Asia President Jürgen Westermeier, and Biman Chairman Rumee A Hossain signed the deal.

The signed package comprises four Airbus A350-900 widebody aircraft and six A321neo narrowbody jets, which are intended to support Biman's future long-haul and regional network expansion.

The aircraft are expected to be delivered from 2031, though Civil Aviation and Tourism Minister M Rashiduzzaman Millat said Biman has requested Airbus to deliver at least one aircraft earlier, possibly by 2028.

"Today's initiative is not merely about acquiring aircraft; it is part of the broader goal outlined in the government's election manifesto to transform Bangladesh into a modern aviation hub.

"To achieve this goal, Biman Bangladesh Airlines' fleet, route network and operational capabilities will be further strengthened. At the same time, the airline will move forward with the objective of establishing Biman as a world-class legacy airline," Civil Aviation and Tourism Minister M Rashiduzzaman Millat said.

The signing marked the conclusion of months of evaluation and negotiations over Biman's Airbus procurement, coming shortly after the national flag carrier expanded its Boeing acquisition programme to 25 aircraft.

The signing ceremony brought together representatives of the government, Biman and Airbus, with Civil Aviation and Tourism Minister M Rashiduzzaman Millat, State Minister for Foreign Affairs Humaiun Kobir, and Invest Bangladesh Executive Chairman Ashik Chowdhury speaking at the event.

Ambassadors of the European Union, France, UK, Spain and Germany also spoke at the ceremony.

"We regard this agreement as a strategic step in Bangladesh's growing commercial and investment relations with Europe -- relations built on international competitiveness, innovation and reliability. At the same time, it represents a strategic decision in favour of economic modernisation, safety and value for money," European Union Ambassador Michael Miller said.

Rumee A Hossain said, "The Airbus inclusion is part of our long term vision to build a sustainable mixed fleet model."

"It is a major and reasonable ambition as Bangladesh handles over 1.5 crore air passengers each year," he added.

He said that widebody aircraft will fly to the Middle East, Europe, North American and Australian routes while narrowbodies will focus on regional and medium Asian hubs.

Biman MD and CEO Kaizer Sohel Ahmed delivered a welcome speech.

The discussions over the purchase of 10 Airbus aircraft date back to the Sheikh Hasina regime.

After a meeting with then-prime minister Sheikh Hasina in Dhaka in September 2023, French President Emmanuel Macron publicly thanked Bangladesh for its commitment to acquiring 10 aircraft from Airbus.

In the meantime, Airbus has intensified its diplomatic and commercial engagement, while several European ambassadors have repeatedly raised the issue during EU-Bangladesh bilateral negotiations.

Biman's 35-aircraft expansion deal

The Airbus deal, together with two Boeing agreements, will take Biman's planned new-aircraft pipeline to 35 aircraft, comprising 19 widebody and 16 narrowbody jets.

Biman's latest Boeing agreement was signed in New York on 23 September under a "Right to Purchase Additional Aircraft" provision included in the 14-aircraft purchase agreement signed on 30 April.

The supplementary agreement covers five Boeing 787-10 Dreamliner widebody aircraft and six Boeing 737-8 MAX narrowbody aircraft. The 11 aircraft will cost about $2.7 billion, with the price based on the same rate agreed under the April contract, the minister said.

The 30 April agreement covered the purchase of 14 Boeing aircraft worth $3.7 billion.

Together, the two Boeing agreements cover 25 aircraft -- 15 widebody jets, comprising two 787-9s and 13 787-10s, and 10 737-8 MAX narrowbody aircraft.

Under the contracts, the first Boeing aircraft is scheduled for delivery in November 2031 and the final aircraft by 2035.

The national carrier currently has 19 aircraft, mostly Boeing dominated. Through the Airbus deal, Biman now goes for a major mixed fleet operation.

Bangladesh's garment and textile industry must accelerate renewable-energy adoption and decarbonisation to protect export markets and ensure long-term competitiveness, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) leaders said at a conference today (7 October).

Industry representatives, global brands, energy and technology experts, and green-financing providers said the ongoing energy crisis has made the transition more urgent, while growing global sustainability requirements are making it necessary beyond the immediate crisis, reads a press release.

BKMEA President Mohammad Hatem urged manufacturers to integrate carbon reduction into factory planning and make use of emerging policy and financing opportunities to accelerate the transition.

"Carbon reduction needs to be part of every factory's planning. Government initiatives and financing opportunities are creating scope for renewable-energy expansion. We need to use these opportunities and work together to prepare our industry for the changes ahead," Hatem said.

He highlighted the potential for rooftop solar installations, financing initiatives from Bangladesh Bank and commercial banks, and BKMEA's efforts to simplify VAT and tax arrangements related to solar projects.

Hatem also called for stronger factory-level planning to prepare for Bangladesh's LDC graduation and evolving EU requirements, alongside greater coordination with government agencies over permissions and approvals.

The remarks came at the "Rapid Energy Transition Conference: Powering Security, Sustainability & Growth in Bangladesh RMG", jointly organised by BKMEA and Ethical Trading Initiative (ETI) Bangladesh.

The conference was attended by 71 participants, including 53 factory representatives and 10 BKMEA leaders, as well as brand representatives, industry experts, banks and renewable-energy service providers.

Eng Imran Kader Turjo, director of BKMEA and managing director of Southern Knitwear Ltd, warned that failing to keep pace with changing market expectations could jeopardise export relationships built over decades.

"It has taken us many years to establish Europe as a major export market. If we cannot meet its evolving requirements, developing another market of that scale will also take many years. What would happen to our garment and textile industry in the meantime?" he said.

Turjo said early action on decarbonisation and renewable energy could also give Bangladesh an advantage over competing sourcing countries.

"Global buyers want to source from Bangladesh. If we move ahead with decarbonisation and renewable energy early, we have an opportunity to get well ahead of competitors such as India and Pakistan," he said.

Other BKMEA leaders also stressed the need for preparation. M Ishfaq Ahsan, CIP, emphasised energy efficiency and shared responsibility with brands, while Mansoor Ahmed highlighted energy security and reducing gas waste.

Md Jamal Uddin Miah called for solar adoption to become part of factories' long-term business strategies, supported by qualified vendors and performance monitoring.

In his welcome remarks, Minhazul Hoque, director of BKMEA and director of Fatullah Dyeing & Calendaring Mills Ltd, urged manufacturers to assess where their businesses need to be over the next five to 10 years.

"Sustainability requirements are becoming issues of business competitiveness. Owners and top management need to be part of that preparation," he said.

Hoque also highlighted emerging requirements linked to Digital Product Passports and the Corporate Sustainability Due Diligence Directive (CSDDD), stressing the importance of credible environmental and carbon data.

Abil Bin Amin, executive director of ETI Bangladesh, said the current pressures also presented an opportunity to strengthen the industry.

"Gradually reducing fossil-fuel dependence and increasing renewable energy can become a business strength and a selling point for Bangladesh's RMG industry," he said.

Speakers said renewable energy and energy-efficiency measures could help address immediate energy supply and cost pressures while supporting the wider decarbonisation needed to remain competitive.

Md Nurul Aktar, director of Energypac Group, said renewable-energy investment should be accompanied by efficiency improvements and changes in workplace practices.

He proposed factory-level campaigns to switch off equipment and lighting during breaks and idle periods, supported by floor-level energy champions, daily targets and section-wise metering. Such measures could be combined with efficient machinery, rooftop solar and appropriately assessed battery storage, he said.

Munir Uddin Shamim, director-programme, evidence & learning at ETI Bangladesh, said the organisation had been promoting workplace-level energy efficiency and conservation practices since 2022.

"Workers can play a major role in identifying energy waste and making energy-saving practices part of everyday factory operations. Their participation can help translate efficiency goals into practical improvements and sustain those improvements over time," he said.

The conference featured two working sessions on the urgency of the energy transition and financing and technology pathways available to manufacturers.

In a keynote, ETI Bangladesh's Jannatul Ferdaus outlined the impact of the energy crisis on supply chains and workers' lives and livelihoods, while Priyong Sabastini examined industry signals and brand behaviour and said the renewable-energy transition and decarbonisation should be viewed as strategic tools for business resilience.

Sadia Rowshon Adhora of the Coastal Livelihood and Environmental Action Network (CLEAN) presented the environmental, social and economic benefits of solar power.

Factory, brand and financing perspectives were shared by Epyllion Group, NEXT Sourcing, Varner, City Bank and Greener Garments Initiative. Discussions highlighted management commitment, feasibility assessments, access to finance and continuous monitoring as key to successful implementation.

Participants raised concerns over financing delays, approval bottlenecks and gaps between projected and actual solar performance.

The conference recommended making decarbonisation and energy efficiency part of long-term business planning; accelerating green-finance approvals and disbursement through coordination among BKMEA, commercial banks and Bangladesh Bank; simplifying net-metering approvals; ensuring sound technical assessments and performance monitoring; exploring cluster-based renewable-energy arrangements for SME factories; and involving workers in energy-saving initiatives.

Closing the conference, Hoque called for financing barriers to be addressed and smaller manufacturers to be included in the transition.

"Renewable energy and decarbonisation are becoming necessary for the industry's long-term survival. Manufacturers cannot carry the responsibility alone," he said.

He urged factory representatives to take the discussions back to owners and management and turn them into practical investment and implementation plans.

GPH Ispat Limited, one of Bangladesh's leading steel producers, is facing severe financial pressure as an acute working capital shortage has disrupted factory operations, pushing its net revenue to a four-year low in fiscal 2025-26.

A sharp fall in production and difficulties procuring raw materials have weakened the company's market presence, while rising debt has further strained its balance sheet and debt-servicing capacity, according to the company and its audited financial report.

The company's net revenue fell 29% year-on-year to Tk3,940 crore in FY26 from Tk5,606 crore a year earlier. Revenue from MS rod sales fell 29% to Tk4,038 crore, while MS billet generated no revenue during the year.

Revenue from industrial gas, an ancillary product, fell 37% to Tk22.72 crore, while export earnings dropped 55% to just Tk8 crore.

Net profit plunged to Tk3.54 crore, leaving the company with a net profit margin of just 0.08%. The company mainly managed to remain profitable because of lower management expenses and income tax, according to the report.

A senior company official, speaking to The Business Standard on condition of anonymity, attributed the operational crisis to an escalating cash crunch.

The liquidity shortage has prevented GPH Ispat from opening letters of credit (LCs) to import sufficient scrap metal and other essential raw materials, the official said. As a result, its factories have been operating well below capacity, leaving key products such as MS rod and billet largely absent from the market.

With revenue falling sharply, the company is also under mounting pressure to meet regular debt instalments, the official added.

The financial strain follows heavy debt-financed expansion over the past decade. In 2016, GPH Ispat launched a major capacity expansion using Quantum Electric Arc Furnace and Winlink technologies, raising annual capacity to 10.50 lakh tonnes of MS billet and 7.90 lakh tonnes of MS rod and structural products.

Commercial production from the expanded facilities began in 2021, followed by the launch of specialised high-grade rebar in 2022. The expansion, however, was financed largely through commercial bank loans and capital market rights issues.

As borrowing costs rose amid sluggish sales, long-term loans increased 40.43% to Tk4,088 crore, taking total liabilities to Tk8,319 crore.

Major credit exposures include Pubali Bank at Tk559 crore, Trust Bank at Tk506 crore, United Commercial Bank at Tk436 crore, Dutch-Bangla Bank at Tk426 crore and NCC Bank at Tk284 crore. The company also has Tk705 crore in syndicated term loans and Tk601 crore in foreign currency loans.

The liquidity crisis has been compounded by a broader slowdown in Bangladesh's steel sector. The company's financial report says installed steelmaking capacity stands at 13–15 million tonnes a year, while effective demand has fallen sharply since FY24–FY25, reducing industry capacity utilisation to 30%–40%.

Weak construction activity, volatility in global scrap prices and foreign exchange restrictions have further worsened conditions. Although demand for high-quality steel remains relatively resilient, GPH Ispat's difficulty securing raw materials has limited its ability to capture market share.

To address the crisis, the company has adopted a two-pronged revival strategy involving debt restructuring and fresh capital. It is negotiating loan rescheduling with lenders to avoid default and has sought policy support from Bangladesh Bank, which is considering the matter.

GPH Ispat also plans to raise nearly Tk968 crore through a rights share issue, with most of the proceeds earmarked for repaying high-cost bank debt and strengthening its balance sheet, the senior company official said.

The government and the Asian Development Bank (ADB) today (7 October) signed loan agreements worth $275 million and a $2.72 million grant for projects to expand affordable housing finance and improve sustainable energy infrastructure in the Chittagong Hill Tracts.

Economic Relations Division (ERD) Secretary Md Shahriar Kader Siddiky and ADB Bangladesh Resident Mission Country Director Qingfeng Zhang signed the agreements on behalf of the government and ADB, respectively.

$100m for affordable housing

The government signed a $100 million loan agreement with ADB for the Inclusive Affordable Housing Finance Project, which will be implemented by Palli Karma-Sahayak Foundation (PKSF) under the Financial Institutions Division of the Ministry of Finance.

The project aims to economically and socially empower low- and middle-income families by improving access to housing. It will expand housing microfinance services for low- and middle-income borrowers while also supporting women's empowerment.

By increasing access to affordable and climate-resilient housing finance, the project is expected to contribute to poverty reduction, stronger social protection, improved living standards and inclusive and sustainable economic growth.

The loan is an ADB Ordinary Operations (Concessional) loan carrying 2% annual interest and repayable over 25 years, including a five-year grace period.

$175m loan, $2.72m grant for hill tracts

For the Sustainable Energy Development and Community Empowerment in the Chittagong Hill Tracts Project, the government signed a $175 million loan agreement and a $2.72 million grant agreement with ADB.

The project will be implemented by the Bangladesh Power Development Board (BPDB) under the Power Division of the Ministry of Power, Energy and Mineral Resources.

It aims to ensure a reliable electricity supply to remote and underserved communities in the Chittagong Hill Tracts by expanding and modernising the electricity distribution system, improving the climate resilience of power infrastructure and creating opportunities for electricity-dependent economic activities.

The $175 million concessional loan carries 2% annual interest and is repayable over 25 years, including a five-year grace period.

The $2.72 million grant will come from the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR), an externally financed fund administered by ADB.

ADB Executive Director Satya Srinivas Lolla attended the signing ceremony, along with senior officials from both sides.

To date, ADB has provided Bangladesh with $36.69 billion in loans and $636.52 million in grants. Its development assistance to Bangladesh mainly covers power and energy, local government, transport, education, agriculture, health, water resources, governance and financial sectors.

The DSE Brokers Association of Bangladesh (DBA) has urged Bangladesh Bank to extend banks' special fund for capital market investment by five years until the end of November 2031 and raise the fund size from Tk200 crore to Tk300 crore.

The association made the proposal in a letter to Bangladesh Bank Governor Md Mostaqur Rahman, signed by its president Saiful Islam.

Introduced in 2020 during the Covid-19 pandemic to boost capital market liquidity, the facility allowed each bank to create a Tk200 crore special fund with a five-year tenure. Bangladesh Bank later extended the facility, with its current tenure set to expire on 31 December 2026.
With the expiry approaching, the DBA sought an extension and an increase in the fund size, citing the market's liquidity shortage amid the current situation and Middle East tensions.

The association said the facility had supported institutional participation, market liquidity and stability, and investor confidence.

"The proposed enhancement and extension would provide continued institutional support, improve market liquidity and depth, strengthen investor confidence, and contribute to the sustainable development of Bangladesh's capital market," it said.

Under Bangladesh Bank's 2020 circular, banks and their subsidiaries could invest through the fund only in stocks that had paid at least a 10% stock or cash dividend, or both, in each of the previous three consecutive years and had at least 30% sponsor/director shareholding.

Following the extension, banks were required to submit a board-approved action plan to Bangladesh Bank within 30 days of the circular's issuance, outlining how they would gradually reduce their investment exposure under the special fund.

The central bank made timely implementation of the plan mandatory. Once the current tenure ends on 31 December 2026, remaining investments under the fund will be treated as part of the banks' capital market investment portfolios, on both solo and consolidated bases, in accordance with Section 26K of the Bank Companies Act 1991, according to the circular.

The Bangladesh Energy Regulatory Commission (BERC) has raised the price of Jet A-1 aviation fuel for both domestic and international flights by around 10.3% for October, continuing an upward trend in jet fuel prices.

For domestic flights, the price has been set at Tk182.71 per litre, up from Tk165.65 in September. This represents an increase of Tk17.06 per litre, or 10.3%, from the previous month.

For international flights operated by local and foreign airlines, the price has been fixed at $1.1882 per litre, including customs duties and VAT.

The September rate was $1.0770 per litre, meaning the international rate has increased by $0.1112 per litre, or around 10.3%.

The revised rates were determined based on the average published Platts rate for Jet A-1 between 5 September and 4 October, the US dollar exchange rate considered in Bangladesh Petroleum Corporation's (BPC) letter of credit settlement and other relevant cost factors, according to a BERC order issued today (7 October).

The commission said it reviewed international Jet A-1 prices, the exchange rate and related costs before finalising the October rates.

The revised prices will come into effect from midnight, according to the BERC order.

Jet fuel prices have now risen for the second consecutive month.

In September, BERC raised the domestic rate to Tk165.65 per litre from Tk159.52, while the international rate increased to $1.0770 from $1.0358 per litre.

Bangladesh's stock market rebounded today (7 October) after four consecutive sessions of losses, as bargain hunting in recently battered stocks helped the benchmark DSEX gain 38 points.

The DSEX rose 38.12 points, or 0.70%, to close at 5,463.35, recovering some of the roughly 125 points it lost over the previous four sessions.

The blue-chip DS30 gained 19.11 points to 2,096.24, while the DSE Shariah Index (DSES) rose 8.79 points to 1,196.67.

EBL Securities said in its daily market commentary that bargain hunting in recently corrected stocks provided some support, although broader investor sentiment remained subdued.

The market was volatile, with selective buying initially lifting the indices before renewed selling pressure emerged mid-session. Late-session buying, however, pushed the indices into positive territory, the brokerage said.

Trading activity also picked up, with turnover on the DSE rising 7% from the previous session to Tk604 crore.

Of 391 issues traded, 191 advanced, 134 declined and 66 remained unchanged.

Evince Textile led turnover, followed by Paramount Textile, BRAC Bank, Saiham Textile and Orion Infusion.

BSRM Steel was the top gainer, rising 9.96%, followed by Evince Textile at 9.52%, BSRM Limited at 7.86%, Saiham Textile at 6.69% and Al-Arafah Islami Bank at 6.66%.

Phoenix Finance First Mutual Fund was the biggest decliner, falling 9.49%. Exim Bank First Mutual Fund dropped 6.89%, Sunlife Insurance 6.30%, First Prime Finance Mutual Fund 6.15% and Prime Bank First ICB AMCL Mutual Fund 5.88%.

Textile stocks accounted for the largest share of turnover at 32%, followed by Pharma at 9.8% and General Insurance at 9.5%.

Among sectors, Jute gained 5%, Paper 2.8% and Engineering 2.2%. Mutual Fund fell 1.5%, Financial Institutions 0.9% and Services 0.4%.

The Chittagong Stock Exchange also closed higher, with the CSCX gaining 70 points to 9,009 and the broader CASPI rising 98 points to 14,655.

The rebound provided some relief after sustained selling pressure, but subdued sentiment and continued weakness in many stocks suggest the recovery remains fragile. Sustained buying interest will be needed to maintain the upward momentum.

Card, ATM, POS, internet banking and NPSB-IBFT services of around 30 banks resumed on Tuesday night after being disrupted since Sunday, October 4, following a sudden system upgrade by Q-Cash, an electronic payment network used by the lenders.

Several banks have since informed customers through Facebook, SMS and websites that the services are fully operational.

Senior bank officials said Q-Cash gave them little notice, with some receiving SMS only hours before or after the upgrade began. The upgrade began on Sunday night and is scheduled to continue until noon on October 10.

On Tuesday, Bangladesh Bank summoned IT Consultants Limited, the operator of Q-Cash, and directed it to promptly restore card-related services.

Arief Hossain Khan, executive director and spokesperson of Bangladesh Bank, told The Daily Star that the services were restored Tuesday night and the issue had been resolved.

“We called in Q-Cash’s management, and they told us it was an accident. Their server migration had been scheduled for October 28, but a server fault forced them to begin immediately. If they hadn’t, a major disaster could have occurred. Even so, we have asked them for a written explanation,” he said.

A senior BB official, requesting anonymity, alleged that the disruption stemmed from non-payment of dues to Compass Plus, the system’s original equipment manufacturer, and poorly planned system activities.

Asked whether the incident was linked to a dispute with a foreign company, the BB spokesperson said, “We have no knowledge of this.”

Kazi Saifuddin Munir, managing director and CEO of IT Consultants, did not respond to calls or WhatsApp messages from The Daily Star.

On October 5, Munir said the migration was scheduled for October 28, and the company had informed the banks and BB.

“However, due to unavoidable circumstances, we had no option but to proceed immediately with full migration to the new system,” he said.

He said the company had provided the service to banks for 24 years without incident and was trying to make all services available by Thursday evening.