Global food commodity prices rose further in September, with the FAO Food Price Index increasing 1.5 per cent month-on-month amid transport disruptions, adverse weather and tighter supply expectations, while international rice prices also moved higher.

The Food and Agriculture Organisation of the United Nations (FAO) said its Food Price Index averaged 136.0 points in September, up from the revised August level and 5.8 per cent higher than a year earlier.

The index, which tracks monthly changes in international prices of a basket of globally traded food commodities, has now come under broader upward pressure as disruptions to major shipping routes and weather-related production concerns affect several food markets.

FAO Chief Economist Maximo Torero said disruptions in the Strait of Hormuz and the Black Sea, combined with climate shocks, were putting pressure on energy, transport and key food commodities.

He warned that if the pressures persist, they could eventually pass through to consumer food prices, particularly in countries dependent on food and energy imports.

Among the major commodity groups, cereals recorded one of the sharpest increases in September. The FAO Cereal Price Index rose 5.1 per cent from August and was 17.2 per cent higher than its level a year earlier.

Wheat prices increased 6.3 per cent during the month, mainly because of logistical constraints in the Black Sea region and dry weather in parts of North America ahead of the sowing season.

Global maize prices also rose 5.6 per cent as concerns over yields in the United States, reduced export availability from Brazil and disruptions to Black Sea trade pushed prices higher.

The rise in cereal prices is particularly important for food-importing countries because wheat and maize are major inputs for food, feed and other agricultural value chains.

Rice prices also increased in September, although at a more moderate pace than the broader cereal market.

The FAO All Rice Price Index rose 1.4 per cent from August, as Indica rice quotations increased amid weather concerns and seasonally tighter supplies.

The rise follows a 0.5 per cent increase in the rice index in August, indicating that international rice prices have remained under upward pressure in recent months.

FAO said the strengthening El Niño is adding further uncertainty to rice production prospects, particularly in South and Southeast Asia, where weather conditions have a significant influence on global rice supplies.

According to FAO, global rice output in 2026 is now forecast at 552.5 million tonnes, with lower production prospects in India, largely due to poorly distributed monsoon rainfall, outweighing improved forecasts for Japan and Nepal.

The agency expects international rice trade to decline 2.2 per cent in 2026 before recovering 1.7 per cent in 2027.

FAO said rice yields globally tend to be 1.0 to 1.5 per cent below their expected trend during El Niño events, adding another layer of uncertainty to the supply outlook.

The overall food price increase in September was broad-based across several crop-related commodities. The Vegetable Oil Price Index rose 0.9 per cent, driven mainly by higher palm oil prices amid strong global import demand and concerns over dry weather in Southeast Asia.

The Sugar Price Index recorded a larger increase of 6.1 per cent, reflecting expectations of tighter global supplies in the 2026/27 season.

However, not all food categories became more expensive. The Meat Price Index fell 1.1 per cent in September, while the Dairy Price Index edged down 0.1 per cent.

The latest rise in the overall index comes against a backdrop of a still-large global cereal harvest. FAO forecasts 2026 global cereal production at 2,979 million tonnes, down 2.1 per cent from 2025 but still the second-largest harvest on record.

Despite the expected decline in production, global cereal stocks are forecast at 950 million tonnes at the close of the 2026/27 season. The cereal stocks-to-use ratio is projected at 31.7 per cent, indicating that global supplies remain relatively substantial.

Nevertheless, logistical disruptions, higher freight rates, firmer fertiliser markets and weather uncertainty are increasing risks to food price stability.

For rice-dependent Asian economies, the combination of tighter seasonal supplies, weather risks and the strengthening El Nino could remain an important factor in international food markets in the months ahead, said FAO.

The shift toward electric vehicles, renewables, battery storage and expanded power grids is driving a surge in demand for copper, rare earths, silver and other materials.
But the electrification push is starting to create its own supply, too.

According to the International Energy Agency, clean energy technologies require far larger quantities of minerals than conventional energy systems, and demand linked to the energy transition is only set to grow over the coming decades.

That accelerating demand contrasts with a supply outlook for key materials which is constrained by new mines, refining capacity and processing infrastructure that can take years to develop.
That conundrum is forcing governments and companies to rethink where future supplies will come from.

An increasingly viable source of new supply is coming from an unexpected source: energy-transition infrastructure itself.

Around the world, breakthroughs in recycling are turning old batteries, retired solar panels, decommissioned wind turbines and aging grid equipment into increasingly valuable sources of the same materials needed to sustain energy-transition momentum.

What began as a waste-management challenge is evolving into a strategic industrial opportunity, as legacy energy-transition components become a resource base in their own right.

Batteries offer the clearest example of the growing importance of recycling to the supply picture.

For years, concerns about future battery supply focused on the availability of lithium, nickel, cobalt and graphite from mines.

But attention is now shifting toward recovering those same materials from batteries already in circulation.

US company Redwood Materials says it recovers more than 95 percent of lithium, nickel, cobalt and copper from spent batteries and manufacturing scrap.

The company processes more than 20 gigawatt-hours of lithium-ion batteries annually and produces more than 60,000 metric tons of critical materials each year.

It describes those recovered materials as a growing domestic source of supply that can reduce dependence on new mining and imports.

With the first generation of large-scale EV batteries now reaching maturity, the volume of available batteries should continue to climb.

This, in turn, may encourage more widespread recycling that can reduce demand for fresh battery components.

The impact on global supply could be meaningful.

Between 20 percent and 30 percent of global lithium, nickel and cobalt demand could come from stepped-up recycling efforts by 2050, according to the IEA.

In Europe, which has some of the world’s most ambitious materials recycling policies, researchers have estimated that roughly 15 percent of lithium, nickel and manganese and around 25 percent of cobalt supplies could come from recycling sources by 2030.

Solar energy faces a similar opportunity.

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The industry is adding generating capacity at record rates, but is also consuming large quantities of silver, silicon and other materials to manufacture arrays.

Recycling efforts have so far focused mainly on recovering glass and aluminium from retired panels; other materials have often remained difficult or uneconomic to recover.

But a series of recent technological breakthroughs is improving the economics of solar-panel recycling, allowing valuable materials such as silver and silicon to be recovered more efficiently.

Researchers at the Netherlands Organisation for Applied Scientific Research recently demonstrated a laser-assisted recycling process capable of recovering silicon with purity levels of up to 99.998 percent and silver with purity of 99.7 percent, while achieving recovery yields of roughly 97 percent.

In Australia, researchers at the University of Newcastle have demonstrated nearly 100 percent silver recovery from end-of-life solar panels using flotation techniques already familiar to the mining industry that are commercially scalable.

Such high recovery rates of some of the most sought-after components of solar arrays have the potential to elevate solar recycling from a side hustle into a lucrative industry.

Indeed, energy consultants at Rystad Energy estimate that the total value of recyclable materials from solar panels could rise from around $2 billion currently to roughly $80 billion by 2050 given the scale of global deployment of solar systems and the expected increase in materials prices.

By 2035, as much as 8 percent of the polysilicon, 11 percent of the aluminum, 2 percent of the copper and 21 percent of the silver needed for solar panel production could come from recycling panels installed in 2020, according to Rystad research.

Future solar deployment may therefore increasingly not need to draw on newly produced silver and silicon but instead look to materials harvested from earlier generations of solar farms.

Wind power is experiencing its own recycling breakthrough.

A wind turbine can already be substantially recycled, but the blades have long represented a technical challenge because of the composite materials used in their construction.

However, recent advances suggest a solution is coming into view that could emerge as a boon for cement makers and construction firms looking to reduce their own carbon footprints.

French multinational Veolia has developed a process that shreds previously unrecyclable fibreglass blades into pellets that can replace coal, silica and limestone in cement kilns.

US company REGEN Fiber applies a similar process to create reinforcement fibers for the concrete, asphalt and composite industries.

While the output of these processes does not produce inputs for the renewable energy industry itself, the recycled materials can displace significant volumes of virgin raw materials in the cement and construction sectors.

An analysis by Quantis US, an environmental consulting firm, found that feeding a shredded 7-metric-ton blade into a cement kiln reduces coal use by 5 tons while avoiding 2.7 tons of silica, 1.9 tons of limestone and nearly 1 ton of additional minerals.

In turn, recycled turbine blades can reduce demand for energy-intensive mining, quarrying and materials processing, lowering the overall resource and emissions footprint of the energy transition.

One of the least discussed recycling opportunities lies within the power grid itself.

Countries are embarking on massive grid-expansion programs to accelerate renewables generation, electrify transportation and support rising electricity demand.

Those investments require enormous quantities of copper, aluminium and steel.

Much of the discussion around these plans focuses on where those materials will come from, overlooking the vast stocks already embedded within aging infrastructure.

Utilities are replacing transformers, substations and transmission equipment that in many cases contain large volumes of high-quality copper, aluminium, steel and other key components.

Recycling programs are increasingly recovering these materials and returning them to industrial supply chains.

US steelmaker Nucor operates specialized recovery facilities that process retired equipment to double their volume of reclaimed copper and non-ferrous metals, which are used in the construction of new transmission components.

That opportunity will grow as grid modernization accelerates.

Every retired transformer and transmission asset represents a concentrated source of refined materials that can be redeployed into the next generation of electricity infrastructure.

The common theme across batteries, solar panels, wind turbines and grid equipment is that the energy transition is creating its own expanding inventory of recoverable materials.

Mining will remain indispensable, of course.

Global demand growth remains too large for recycling alone to meet.

But the industry is increasingly discovering that future supply does not depend exclusively on what can be extracted from the ground.

As concerns grow over critical-mineral shortages and supply-chain security, the most important new mine of the energy-transition era may prove to be the one that has already been built.

The government has reined in bank borrowing after a spree early in the fiscal year, with analysts blaming the sluggish pace of development work.

Bangladesh Bank data show the government borrowed Tk 166.01 billion from commercial banks in July and August, the first two months of the fiscal year, while repaying Tk 37.28 billion owed to the central bank.

That leaves net borrowing from the banking system at Tk 128.72 billion for the period. July accounted for Tk 74.69 billion, falling to Tk 54.03 billion in August.

The first 13 days of the fiscal year alone saw net borrowing of Tk 92.09 billion, of which Tk 54.14 billion came from Bangladesh Bank and Tk 37.95 billion from commercial banks.

Central bank borrowing pumps fresh money into the economy, potentially adding to inflation by increasing demand.

Inflation has eased but remains above 8 percent.

Fuel prices have been raised by Tk 20 a litre in one go, increasing transport costs and adding to price pressures across the economy.

The new government pay scale has also sharply increased salaries and allowances for public employees.

Central bank officials say concerns that these factors could push inflation higher help explain why the government is now repaying Bangladesh Bank rather than borrowing from it.

Bangladesh Bank spokesman Arief Hossain Khan told bdnews24.com that borrowing typically swells at the start of a fiscal year.

“Revenue collection is low, and more has to be borrowed to meet essential expenses,” he said. “That happened this time too. It is easing now, but it could rise again.”

Borrowing from banks or the public to cover budget deficits is a normal process, Arief said, as the government needs to finance development projects.

Supplying the government with loans through treasury bills and bonds when required is part of the central bank's role, he added.

“We are only doing that job. How the loans will be repaid is for the government to worry about. If it cannot collect the revenue it expects, it has to run the country on borrowing. That is natural.”

Commercial banks' outstanding loans to the government stood at Tk 6.08 trillion on Aug 31, up from Tk 5.91 trillion at the end of June.

Outstanding central bank borrowing fell to Tk 903.22 billion in August from Tk 940.51 billion in June.

The latest report from the Implementation Monitoring and Evaluation Division (IMED) of the planning ministry shows less than 2 percent of the Annual Development Programme (ADP) was implemented in the first two months of the fiscal year.

Ministries and divisions spent Tk 57.10 billion during the period, just 1.85 percent of the total ADP.

Bangladesh has never before recorded such a low rate of development spending in the first two months of a fiscal year.

For FY27, the government has set a target of borrowing Tk 1.12 trillion from the banking system. It has already drawn 11.49 percent of that in two months.

The government sets a bank borrowing target in the budget each year to help finance the deficit.

The FY26 target of Tk 1.04 trillion was raised to Tk 1.18 trillion in the revised budget, but actual borrowing ultimately reached Tk 1.32 trillion.

In FY25, the government borrowed Tk 1.19 trillion against a target of Tk 1.17 trillion.

The National Board of Revenue (NBR) previously published monthly revenue figures in the first week or around the middle of the following month. Three months into the fiscal year, covering July to September, it has yet to release figures for a single month.

NBR officials say the figures have not been released because revenue collection has fallen short of target.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, told bdnews24.com it was positive that the government was repaying the central bank rather than borrowing from it.

“That may ease the pressure on inflation,” he said. “But the fuel price rise and the pay increase for government employees will push up government spending, and inflation too.

“There are hardly any steps to boost revenue collection. So spending will climb further, and so will borrowing.”

The latest Bangladesh Bureau of Statistics (BBS) data put point-to-point inflation at 8.26 percent in August, down from 8.32 percent in July.

Announcing the October-December monetary policy on Wednesday, Bangladesh Bank Deputy Governor Habibur Rahman warned of several risks to the inflation outlook.

Higher fuel prices could raise transport and production costs, he said, while implementing the new government pay structure could add to inflationary pressure.

“The recent decline in overall inflation is not enough proof of a sustained fall, because inflation remains vulnerable to supply and cost pressures,” he said.

Habibur cited rising global fuel prices, the stalemate in the Strait of Hormuz, the recent increase in administered fuel prices and the possible impact of the national pay structure among the main risks.

“Easing monetary policy before the right time could lift inflation expectations and delay the return to the inflation target,” he added.

Textile and Jute Minister Khandakar Abdul Muktadir yesterday said the government is working to convert raw jute into high-value products to maximise foreign exchange earnings and revenue.

The government is also promoting promising sectors beyond readymade garments (RMG), including silk, handloom and diversified jute products, he said while inaugurating a six-day “Multipurpose Jute Products Fair” and the sales outlet “JDPC EXPRESS” at the Jute Diversification Promotion Centre (JDPC) premises in Tejgaon, Dhaka, as the chief guest.

A permanent showroom is being launched at the JDPC to promote these products and expand their markets, he said.

The government aims to attract local buyers through fairs and exhibitions while raising awareness of these products among foreign buyers, he added.

The minister said the products include both machine-made and handmade items, with the latter mostly produced by cottage and small industries.

Replying to a question on the diversification and export expansion of jute goods, Muktadir said a plan was being developed in coordination with the JDPC and private-sector entrepreneurs’ associations.

There is little value addition in exporting raw jute, but its value can be multiplied by gradually converting it into high-value products such as sliver, packaging materials and blended fibre, he said, expressing optimism about the sector’s prospects.

The government is also working to make the country’s GI products, multipurpose jute goods, Rajshahi silk, handloom and other textile products better known and more widely used, Muktadir said.
“At the peak of the market last year, raw jute was priced at around Tk 1.5 lakh, or about $1,200, per tonne,” the minister said.

He said the same quantity of jute could fetch around $2,400-$2,500 if converted into packaging products.

Blended fibre products made by mixing jute with cotton or other fibres could earn around $4,000-$5,000 per tonne, he added.

The government’s goal is to convert the largest possible share of the country’s jute output into value-added products, Muktadir said.

“Work is under way in coordination with relevant institutions and entrepreneurs to determine how much jute can be used in which sectors and for what kinds of products.”

He expressed hope that these efforts would help maximise foreign exchange earnings and revenue from jute.

State Minister for Textiles and Jute Shariful Alam said the fair aims to promote local products in the domestic market, expand the use of eco-friendly goods and discourage the use of polythene.

The government is also working to make the country’s geographical indication (GI) products, diversified jute goods, Rajshahi silk, handloom and other textile products better known and more widely used, he said.

“The golden fibre jute was once tied to the country’s pride and people’s emotions, but much of that heritage has been lost over time,” he said.

Such fairs are being organised as part of efforts to increase jute production, expand the use of diversified jute products, develop domestic and international markets, and generate more value from the fibre, he added.

The JDPC organises such fairs at various locations across the country every year, Shariful said.

He said “JDPC EXPRESS” would operate as a permanent sales and display centre, offering diversified jute products alongside handloom and silk items. There are also plans to set up similar showrooms at other important locations in the future.

The government is also considering setting up showrooms or display centres for local products at international airports and Bangladesh’s missions abroad.

To raise awareness and promote the use of these products at home and abroad, they need to be effectively marketed internationally, he said.

“With the cooperation of entrepreneurs and the media, the government wants to showcase local products more widely in the global market.”

The six-day fair will run from October 3 to 8, from 10am to 8pm daily.

The new outlet, “JDPC EXPRESS”, will remain open seven days a week, from 11am to 8pm.

The government has unveiled a comprehensive short-, medium-, and long-term energy roadmap aimed at bolstering national energy security, meeting rapidly growing electricity demand, and mitigating fuel supply vulnerabilities through domestic resource extraction and modern technology.

The policy document, titled "Challenges and future roadmap for Bangladesh's power and energy sector", was presented by the Ministry of Power, Energy and Mineral Resources to Prime Minister Tarique Rahman on 14 September.

The plan

Under the medium-term strategy spanning 2028-30, the government plans to add 12,940MW of generation capacity to the national grid to accommodate projected peak demand of 20,000–25,000MW. This includes 10,000MW from new solar installations, 2,940MW from coal-fired projects across Barapukuria (300MW), Payra (1,320MW), and Matarbari (1,320MW), alongside modernisation of grid distribution networks and the deployment of battery energy storage systems (BESS).

Solar on PPP model

Large-scale solar development will rely heavily on public-private partnership (PPP) models in Sirajganj, Sonagazi, and Rampal. Additionally, private entrepreneurs are being engaged under the OPEX model; as of 28 September, 1,400 applicants had collected submission forms. The initiative is backed by initial approval for a $350 million loan from the World Bank, alongside ongoing financing discussions with the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB).

For the immediate 2026–27 period, short-term measures are already being implemented to cover an estimated demand of 20,000MW. Supply allocations comprise 6,000MW each from gas and coal, 4,000MW from liquid fuels, 2,500MW via regional imports, and up to 4,000MW from rooftop solar. To expedite solar adoption, import duties on solar equipment have been slashed from 64% to 1%, advance income tax reduced from 15% to 1%, and the purchase tariff set at Tk 10.50 per unit.

Long-term Objective

Looking ahead to 2031–40, the long-term objective sets a target of securing at least 30% of total generation from renewable sources by 2040, gradual retirement of costly oil-fired generation, integration of small modular reactor (SMR) nuclear technology, and cross-border power purchases to serve demand estimated at 38,000–40,000MW.

Gas supply expansion forms a parallel pillar of the strategy. The roadmap includes plans for a 1,000mmcfd land-based LNG terminal, advanced negotiations for a 600mmcfd FSRU in Kutubdia with a Chinese state enterprise, and the completion of surveys for the 96km Feni–Bakhrabad pipeline. Onshore, 31 of a targeted 150 exploration wells in the first phase have been drilled, with a secondary 150-well campaign planned for 2031–35. Bidding under the "Bangladesh Offshore Model PSC-2026" has also opened to international energy firms.

Despite these targets, energy analysts have raised concerns regarding fiscal sustainability and implementation.

What experts say

Khondaker Golam Moazzem, president of Knowledge Hub Institute Trust, cautioned that the roadmap lacks a rigorous integrated financial analysis and clear sources of funding.

"The financial pressure created by the previous government's flawed policies, irregularities, and corruption could multiply unless the current strategy is properly revised," Moazzem said, noting that heavy reliance on imported LNG exposes the economy to global market volatility. He added that domestic coal development carries high environmental risks and costs, while pointing out that the plan overlooks other alternative renewables such as wind, waste-to-energy, and small hydro.

Shafiqul Alam, lead energy analyst for Bangladesh at the Institute for Energy Economics and Financial Analysis (IEEFA), stressed that operational continuity remains paramount.

"Renewables will play a crucial role in the coming years and the government is rightly prioritising the sector," Alam said, highlighting that global financing for coal projects is rapidly contracting. He emphasised that accelerated domestic gas exploration must proceed without disruption to reduce expensive liquid fuel and LNG import dependencies.

Power demand rises 17%

The roadmap said electricity demand is rising rapidly even as the country struggles with fuel shortages to maintain generation. Total electricity demand stood at 15,570MW in September 2025 but rose 17% year on year to an estimated 18,178MW on 14 September.

In September 2025, total electricity generation stood at 15,271MW. Gas-fired plants accounted for the largest share at 5,875MW, followed by coal-fired plants at 4,719MW and liquid-fuel plants, including furnace oil and diesel, at 2,812MW.

For September 2026, total generation is projected at 15,859MW. Gas-fired generation is expected to rise slightly to 5,977MW, while coal-fired generation could fall to 4,363MW.

To address coal shortages and meet higher demand, generation from liquid-fuel plants is planned to increase significantly to 3,791MW.

Bangladesh's private-sector external debt fell by more than 23% from its 2022 peak to nearly $19.94 billion in July 2026, as high global interest rates, taka depreciation and foreign-exchange pressures prompted businesses to pay down short-term dollar liabilities and reduce reliance on foreign borrowing.

The shift is most visible in short-term debt, which includes buyer's credit, deferred import payments and other trade facilities. It fell 42.48% to $10.21 billion between the second quarter of 2022 and July 2026, Bangladesh Bank data show.

The sharp decline indicates that local businesses have been repaying foreign obligations rather than rolling them over, while also relying less on short-term foreign credit to finance imports and working capital.

At the same time, long-term private-sector external debt has risen steadily, increasing from $4.92 billion in early 2020 to nearly double that amount, or $9.73 billion, by July 2026.

Businesses say they have increasingly shifted away from volatile, short-tenor foreign loans towards structured long-term facilities to reduce exposure to sudden refinancing and rollover pressures.

"Foreign loans have become too expensive – 7-8%," said Mostafa Kamal, chairman and managing director of Meghna Group of Industries (MGI), which has borrowed from various foreign sources.

MGI has taken both short-term foreign loans, including working-capital facilities, and long-term project loans with maturities of five to 10 years.

"We still have foreign loans in the process, but now it has become far more expensive than it was in 2020-2021," Kamal told The Business Standard.

Interest on private-sector foreign loans is tied to the benchmark SOFR (Secured Overnight Financing Rate), which is 3.87% as of 1 October 2026, according to the Federal Reserve Bank of New York. SOFR was near zero at 0.05% in 2021 and it jumped to 1.50% in Q2 of 2022 when the global economy, including Bangladesh, recovered from Covid-19. On top of that, foreign lenders add a credit risk spread and a 20% withholding tax on interest remittances sent abroad.

Bangladesh Bank data show that private-sector external debt peaked at $25.95 billion in the second quarter of 2022, up from $13.23 billion two years earlier.

At the peak, more than $17.75 billion, or about 68% of total private-sector external debt, consisted of short-term liabilities. Four years later, in July 2026, total private-sector external debt had fallen to $19.94 billion, while the share of short-term debt had dropped to around 50%.

Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue (CPD), said the decline in private-sector external debt was likely the result of several pressures working together.

High global interest rates have made foreign borrowing more expensive, while the depreciation of the taka has increased the amount businesses have to repay in local currency against dollar-denominated loans.

"Though foreign exchange reserves are increasing, they are not enough. With foreign exchange scarce and access to dollars uncertain, private companies probably avoided new foreign debt and repaid existing obligations where possible," said Fahmida.

The sharpest decline has been in short-term debt, which fell 42.48%.

"This may partly reflect reduced use of trade credit and short-term loans to finance imports," the economist said.

"When import payments are difficult or costly, businesses may cut or delay imports, seek more domestic financing, or reduce their reliance on short-term foreign credit," she told TBS.

Bangladesh Bank's reporting classifies private-sector short-term external debt as including trade credit and other short-term liabilities. The decline, therefore, may reflect changes in these financing flows as well as actual loan repayments.

"This reduction can lower exposure to foreign currency and refinancing risks. But it should not automatically be seen as a sign of stronger businesses. It may also indicate that the private sector is postponing investment, facing tighter access to finance, or operating with lower imports and production," said Fahmida.

The decline in total external debt could mean repayments have exceeded new borrowing. However, determining the precise causes would require data on new borrowing, repayments, trade credit and investment, she said.

The Insurance Development and Regulatory Authority (IDRA) is stepping up efforts to clear the massive backlog of unpaid claims, with another Tk 264 million set to be paid to 7,641 policyholders on Sunday.

This will be the third phase of IDRA's special claim-settlement initiative.

The payout will bring the total amount disbursed to Tk 639.1 million, paid to 16,058 policyholders in three phases, as the regulator seeks to address long-pending legitimate claims and rebuild confidence in the insurance industry.

The total outstanding unpaid claims in the insurance sector, however, would still remain high – at Tk 70 billion – mostly involving some life insurers, according to the IDRA.

Against this backdrop, the regulator has prioritised the settlement of legitimate claims that have remained unpaid for extended periods, particularly those involving financially distressed insurers.

The third-phase payment is being led by IDRA Chairman Mir Nadia Nivin as part of a broader drive to revive the sector.

Under the latest phase, Baira Life Insurance will pay Tk 0.58 million, Homeland Life Insurance Tk 48.8 million, Padma Islami Life Insurance Tk 90 million, Progressive Life Insurance Tk 67.8 million, Sunflower Life Insurance Tk 3 million and Sunlife Insurance Tk 53.5 million.

The regulator has been arranging funds from various sources, including by selling assets and security bonds of the insurers concerned, to meet the claims.

Ms Nivin, who took office in July, said the settlement of long-pending legitimate claims is one of her top priorities. "The initiative is aimed at protecting policyholders' rights, restoring discipline in the insurance sector and rebuilding public trust," she said recently.

The claim-settlement drive will continue, with remaining legitimate claims to be considered after verification and scrutiny.

IDRA has also been conducting one-to-one governance review meetings with insurance companies to identify the reasons behind delays in settling claims and the operational or compliance-related problems responsible for the backlog.

"Some companies have ancillary and compliance-related problems," Ms Nivin said, adding that the regulator is working with the parties concerned to resolve the issues quickly.

Of the country's 82 life and non-life insurance companies, only a handful are facing serious difficulties, according to the IDRA chairman.

Around seven to eight troubled life insurers are being dealt with separately, but the regulator's intervention is not limited to those companies.

"We have taken a holistic approach to improving claim settlement across the entire insurance sector," she said.

Companies facing moderate-level problems are also being brought under closer supervision. Their financial capacity is being reviewed, while the regulator is putting pressure on them to accelerate the settlement of legitimate claims, she added.

Settlement drive so far

In the first phase, IDRA facilitated the payment of Tk 145.1 million to 2,549 policyholders of seven life insurers on September 3.

The first phase covered Baira Life Insurance, Fareast Islami Life Insurance, Golden Life Insurance, Homeland Life Insurance, Padma Islami Life Insurance, Progressive Life Insurance and Sunflower Life Insurance.

Under the second phase, IDRA paid Tk 230 million to 5,868 policyholders of five life insurers on September 14. The companies were Padma Islami Life Insurance, Homeland Life Insurance, Fareast Islami Life Insurance, Sunflower Life Insurance and Sunlife Insurance.

The initiative comes at a time when the insurance industry is grappling with a serious confidence crisis stemming from delayed claim payments, financial weaknesses at some insurers and regulatory concerns.

The regulator is simultaneously pursuing broader reforms, including stronger supervision of insurers and measures aimed at improving financial discipline, as part of its efforts to strengthen the sector.

Bilateral trade between Bangladesh and China reached a record US$12.8 billion in the first half of 2026, up 10.6 per cent year on year, the Chinese embassy in Dhaka said on Wednesday.

In a statement marking the 77th anniversary of the founding of the People's Republic of China, the embassy highlighted expanding cooperation in trade, investment, infrastructure and healthcare.

China remained Bangladesh's largest trading partner for 16 consecutive years from 2010 to 2025, the statement said.

Bangladeshi agricultural products, including fresh mangoes and jackfruits, have gained access to the Chinese market, while efforts are underway to secure market access for guavas and aromatic rice.

The two countries are also implementing a joint action plan to enhance Bangladesh's export capacity and improve the structure of bilateral trade, the embassy said.

Alongside growing trade, China's cumulative investment in Bangladesh reached approximately US$3.6 billion as of June 2026, according to the statement.

Chinese direct investment in Bangladesh increased by approximately 50 per cent year on year in 2025, it said.

Since the establishment of the new government, five Chinese-invested enterprises have invested more than US$100 million in Bangladesh, creating nearly 20,000 jobs, the embassy added.

The China Economic and Industrial Zone in Chattogram was officially launched in July 2026 and has attracted intended investments totalling US$500 million.

The zone focuses on developing textiles and garments, machinery manufacturing, electronics and information technology, biomedicine and green energy industries, the statement said.

Highlighting infrastructure cooperation, the embassy cited the Padma Bridge, constructed by a Chinese company, as a major project connecting Dhaka with 21 districts in southwestern Bangladesh.

The bridge is estimated to contribute 1.23 percentage points to annual GDP growth and reduce the poverty rate by 0.84 percentage points, according to the statement.

Chinese companies have also undertaken coal-fired, solar and wind power projects with a combined installed capacity exceeding 1,000 megawatts, it said.

Several China-aided projects are currently under construction, including the burn unit at Chattogram Medical College Hospital and the renovation of Bangladesh-China Friendship Bridge-6.

Other projects, including a general hospital, a women's hall of residence at the University of Dhaka, Bangladesh-China Friendship Bridge-9 and an emergency management centre, are also progressing, the embassy said.

In healthcare and humanitarian assistance, China has provided Bangladesh with donations worth more than US$4 million in recent years, according to the statement.

The assistance included dengue and Cocid-19 testing kits, medicines and ventilators for burn treatment, robotic rehabilitation equipment and flood relief supplies.

China has also supported the construction of a 1,000-bed general hospital and the burn unit project at Chattogram Medical College Hospital, it added.

The embassy said these initiatives reflected China's support for Bangladesh in times of need and its contributions to safeguarding the health and well-being of the Bangladeshi people.

Once a reputed and profitable state-owned lender, BASIC Bank is still struggling to recover from the financial damage caused during the tenure of its former chairman Sheikh Abdul Hye Bacchu, under whom irregularities involving around Tk 4,500 crore came to light.
Established in 1989, the bank was profitable till 2009, when the then Awami League government appointed Jatiya Party leader Bacchu as its chairman.
Soon after, the commercial lender became mired in financial irregularities.

An inspection by the Bangladesh Bank (BB) later found that loans worth Tk 4,424.93 crore were disbursed with serious irregularities across four branches between December 2009 and November 2012. The loans are yet to be recovered by the bank.
Bacchu resigned as BASIC Bank chairman in July 2014, shortly after BB uncovered massive irregularities and scams and recommended that the finance ministry dissolve the bank’s board.

By then, the state lender’s bad loans had jumped to 57.15 percent from just 4.83 percent at the end of 2010.Although widespread irregularities and corruption took place at the bank, Bacchu was not officially held responsible until 2015.
By the time the Anti-Corruption Commission (ACC) identified him as responsible, he had already fled the country.

FAILED MERGER WORSENED BASIC CRISIS

Amid the irregularities and scams, BASIC Bank posted a net loss of Tk 53 crore in 2013. Since then, it has reported losses every year.

The loss stood at Tk 416 crore in 2023 and had reached Tk 655 crore by September 12 this year, according to the bank’s data.

Over the same period, its bad loans rose to Tk 8,153 crore, or 64.49 percent of its total disbursed loans, while its provision shortfall stood at Tk 5,051 crore as of September 12 this year. The bank also faces a capital shortfall of Tk 5,148 crore, show data.

Under the previous Awami League government, then BB governor Abdur Rouf Talukder pushed BASIC Bank towards a voluntary merger with City Bank, one of the country’s largest private lenders, in April 2024.

The move was part of a broader central bank drive to merge weak banks with stronger ones.

However, the rescue initiative dealt another blow to the bank. It triggered a severe liquidity crisis as public and institutional depositors panicked. The plan was eventually scrapped following the political changeover in August 2024.

The image problem still hurts deposits and business despite improvements over the past two years, according to Helal Ahmed Chowdhury, chairman of the bank, who took charge in November 2024.

Helal, a senior banker with nearly five decades of experience, said that the bank’s main wound is the scam that started in 2009. “We are still struggling to overcome its impact.”

He said the bank is now focused on reducing non-performing loans (NPLs), expanding export and import business, onboarding new exporters, strengthening its foreign currency position and attracting remittances through arrangements with overseas banks.

TK 5,000CR DEPOSIT SOUGHT FOR RECOVERY

The current chairman of the bank said they are seeking Tk 5,000 crore in low-cost deposits from the government or BB to improve its financial position and reduce NPLs.

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“The proposal is still under process.”

Helal said the low-cost funds could be used to replace some high-cost deposits, helping strengthen the bank’s liquidity position and rebuild depositor confidence.

The bank is also seeking government support to open Special Notice Deposit (SND) accounts with government agencies and to be included among the banks designated to receive government deposits and loans.

An SND account is a short-term, interest-bearing bank account for businesses, institutions and individuals who need frequent transactions but want to earn a higher return than a standard current account.

As of September this year, the bank’s deposits stood at Tk 17,224 crore, while its loans and advances stood at Tk 12,521 crore, according to data.

Helal said the bank is working with Sonali Bank and other lenders on bilateral arrangements and is seeking agency agreements with overseas banks to facilitate remittance inflows.

To boost lending and recovery, BASIC Bank has introduced a system requiring every branch to submit two loan proposals and two recovery plans each month.

The bank has 72 branches and 35 sub-branches, along with other operational units.

Up to September this year, the bank recovered Tk 79 crore in cash and Tk 229 crore through non-cash recovery from classified loans, according to data.

‘SIGNS OF IMPROVEMENT IN SIGHT’

The chairman said the bank has already begun to show signs of improvement, although its large legacy losses mean positive results have yet to fully offset accumulated losses.

Policy support from BB, including relevant regulatory measures and schemes, would be crucial to the bank’s turnaround, he said.

“We believe there is every possibility of turning the bank around within the next three years, provided we receive the necessary support,” he said, adding that the bank has drawn up a three-year action plan involving low-cost funds from BB, policy support, reduced cost of funds and capital injection.

TOP 20 DEFAULTERS OWE TK 2,288CR

As of June this year, BASIC Bank’s top 20 defaulters collectively owed Tk 2,288.25 crore in classified bad loans, all rated “Bad/Loss”, the worst category under the Bangladesh Bank’s loan classification norms.

Real estate firm Amader Bari Ltd topped the list with Tk 204.66 crore in outstanding dues, followed by Crystal Steels & Ship Breaking Ltd, Western Housing Ltd, Well Tex Ltd and Zeal Wears Ltd.

Other large defaulters include Cox’s Developer Ltd, Map Paper Board Mills Ltd, IG Navigation Ltd, Bay Navigation Ltd, and Regent Weaving Ltd -- each owing more than Tk 110 crore.

The remaining names on the list are Confidence Shoes Ltd, The Aristocrat Agro Ltd, Ali Trade International Ltd, Ajbina Agro Industries Ltd, Atlas Food & Beverage Ltd, Barshon Agro Industries Ltd, Techno Design & Development Ltd, Mynco Jute Mills (Composite) Ltd, New Auto Define, and Lohozong Trade International Ltd.

Bank data show recovery against these accounts has been minimal, with cumulative collections of only about Tk 36.4 crore so far -- barely 2 percent of the total outstanding -- while the forced sale value of pledged collateral covers just Tk 364.71 crore, or roughly 16 percent, of the amount owed.

The chairman said the bank is pursuing legal action against the defaulters through the money loan court, under the Negotiable Instruments (NI) Act, and through cases filed by the Anti-Corruption Commission.

Recovery efforts against loans disbursed during the period of major irregularities are also continuing, he said, suggesting that the actual recovery position be assessed from a specific cut-off date.

The bank’s recovery efforts could be significantly strengthened if it regained control of its building, currently under dispute with a developer, he said. The bank also needs additional manpower and technological upgrades, including an updated core banking system (CBS).

‘GOVERNANCE KEY TO ANY RECOVERY’

Toufic Ahmad Choudhury, former director general of the Bangladesh Institute of Bank Management (BIBM), said there is no example in Bangladesh of a weak bank becoming strong through government liquidity support or capital injection.

He described some state-owned banks, including BASIC Bank, as “bottomless baskets” that cannot recover on liquidity support alone.

Strong governance and a focus on reducing non-performing loans are essential, he told The Daily Star.

“Liquidity support should not be provided without ensuring good governance,” he said.

“The government itself is responsible for the distress of state-owned banks. Fixing them requires political commitment, but the government lacks the willingness to reform them. If it had the political will, these banks would have recovered by now,” Toufic added.

The Dhaka Stock Exchange (DSE) benchmark index fell nearly 19 points on Thursday (1 October) as renewed selling pressure and investor caution over weaker corporate earnings weighed on the market.

The DSEX, the broad index of the DSE, dropped 18.79 points, or 0.34%, to settle at 5,531.65, reversing the previous session's brief recovery.

The DS30, which tracks 30 leading blue-chip companies, fell 4.86 points, or 0.23%, to 2,103.55.

The Shariah-based DSES index declined 2.20 points, or 0.20%, to 1,100.26, while the large-cap CDSET index fell 2.35 points, or 0.21%, to 1,103.26.

According to EBL Securities, market momentum remained under pressure from the opening bell as investors stayed cautious about the sustainability of the recovery.

"The lack of conviction over a sustained recovery led sellers to regain dominance in the final hour of trading, dragging most stocks into negative territory," the brokerage said in its market commentary.

Despite the decline in indices, turnover rose 3.4% to Tk720 crore from Tk700 crore in the previous session.

Of the 395 issues traded on the DSE, 240 declined, 84 advanced and 71 remained unchanged.

Non-bank financial institutions (NBFIs) recorded the highest decline among major sectors, falling 1.20%. Food & Allied declined 0.44%, followed by Fuel & Power at 0.32%, Pharmaceuticals at 0.26%, Engineering at 0.15% and Banks at 0.14%.

Telecommunications was the only major sector to post a gain, rising 0.01%.

EBL Securities said Services and Travel were the worst-performing sectors, both falling 1.8%, while General Insurance declined 1.7%. Tannery was the only sector to post a positive return, gaining 0.4%.

Textile stocks accounted for the largest share of market turnover at 32.5%, followed by General Insurance at 13.6% and Pharmaceuticals at 8.7%.

IPDC Finance PLC was the most traded stock, with shares worth Tk51 crore changing hands. Its share price, however, fell 6.5%.

Block trades accounted for 8.4% of the day's total market turnover, according to BRAC EPL Securities.

In contrast, the Chittagong Stock Exchange ended the session higher. Its Selective Categories' Index (CSCX) gained 19.4 points, while the All Share Price Index (CASPI) rose 17.3 points.

Market participants said investors may remain cautious until there is greater clarity over corporate earnings, the broader economic outlook and the sustainability of the market recovery.

As a result, despite a modest increase in turnover, the DSEX continues to struggle to establish a sustained upward trend.

Gold prices fell on Friday, reversing earlier gains, as a stronger dollar and elevated US Treasury yields weighed on the non-yielding metal, leaving it on track for a weekly decline.

Spot gold fell 0.9 percent to $4,140.06 per ounce by 02:33 p.m. EDT, and was down about 3.4 percent for the week so far.

US gold futures settled 1 percent lower at $4,162.30.

The US dollar edged lower, but was headed for a weekly gain, while yields on 10- and 30-year Treasuries hit their highest levels since 2002 on Thursday.

Bullion fell after gaining over 1 percent earlier in the session after data showed US job growth slowed more than expected in September.

US non-farm payrolls rose by 29,000 last month after a downwardly revised increase of 133,000 in August, the Labor Department’s closely watched employment report showed on Friday.

Economists polled by Reuters had forecast payrolls advancing 90,000 after a previously reported 162,000 surge in August.

“Gold bugs are perhaps refusing to get carried away for the time being, knowing that the Fed retains a hawkish bias,” said Han Tan, chief market analyst at Bybit.

“In the months ahead, much of gold’s trajectory will depend on how much the Fed is willing to tolerate potential labor market weakness, with its eyes firmly set on subduing US inflation.”

Bullion has fallen over 20 percent since the US-Israeli war with Iran began in late February, pressured by expectations that conflict-driven inflation could keep interest rates higher for longer.

The latest softer-than-expected inflation data, along with opposition from at least two top policymakers to another rate hike in October, have strengthened investor bets that the US Federal Reserve will keep rates on hold later this month.

Traders currently see about a 22 percent chance of a US rate hike this month, compared to around 70 percent earlier in the week, according to the CME FedWatch Tool.

The government plans to borrow a net Tk30,107 crore from the banking sector through treasury bills and bonds in the October-December quarter of the current fiscal year, according to the latest auction calendar released by Bangladesh Bank.

The planned borrowing is lower than the more than Tk35,000 crore in net borrowing targeted through government securities in the previous July-September quarter.

The increased borrowing comes amid a shortfall in government revenue collection and rising expenditure pressures, including the implementation of the new pay scale for government employees.

According to NBR data, the government collected Tk29,000 crore less than its revenue target during the current fiscal year, with collection also 5.25% lower than in the corresponding period of the previous fiscal year.

The government's expenditure requirements are also expected to rise following the implementation of the new pay structure for public servants. The basic salaries under the new structure will be implemented in three phases – in July this year, December and July next year – while employees will receive all allowances under the new structure from January 2028.

The new pay structure is expected to add Tk1,05,380 crore to government expenditure over three years, including an additional Tk37,372 crore in December 2026.

Economists said the government's increased reliance on bank borrowing could raise interest expenditure and put additional pressure on revenue collection.

Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue, said the borrowing indicated pressure on the government's liquidity position.

"The government is borrowing from the banking sector, which indicates that there is a liquidity shortage in the government's coffers. However, increasing borrowing from banks is not a sustainable method," she said.

"The government will have to repay the money it is borrowing. So, it remains to be seen where the government will get the money to repay these loans," she added.

She said increased government borrowing could eventually affect private-sector credit.

"When demand for loans increases, it may affect the private sector. At present, liquidity in banks is in a good position. However, if borrowing continues to increase gradually, it will have an impact on the banking sector," she said.

Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management (BIBM), said the government needs additional funds to implement the new pay scale.

"The government is borrowing from banks to finance the additional expenditure, which will increase interest payments in the budget. The government will then have to put greater emphasis on revenue collection," he said.

A banker, speaking on condition of anonymity, told The Business Standard the increased government borrowing was unlikely to have a significant immediate impact on private-sector credit as demand for loans remained weak.

He said many commercial banks currently have adequate liquidity. "However, continued government borrowing could affect private-sector lending if demand for credit picks up."

He also said the government would need to reduce its reliance on bank borrowing over time.

The Large Taxpayers Unit (LTU) of the National Board of Revenue (NBR) has asked Islami Bank Bangladesh PLC to settle income-tax disputes involving Tk 4.68 billion, pending with the High Court, through the Alternative Dispute Resolution (ADR) process.

The LTU issued a notice on September 27, asking the bank to submit issue-wise explanations and supporting documents by October 12 to facilitate an early settlement of the disputes.

The disputes involve 14 income years, according to a letter sent to the bank's managing director by Md Mustafizur Rahman, commissioner of taxes at LTU Dhaka.

The largest disputed amount, Tk 1.82 billion, relates to the 2020-21 tax year, followed by Tk 1.22 billion for 2019-20. Together, the two years account for Tk 3.04 billion, or nearly 65 per cent of the total disputed tax.

The disputed tax for 2009-10 stands at Tk 518.2 million, while another Tk 353 million relates to 2018-19. Disputes concerning 2021-22 involve Tk 233 million.

The remaining disputes relate to income years from 2002 to 2009 and 1997, involving varying amounts. The oldest case dates back to the 1997 income year, corresponding to the 1998-99 assessment year.

The LTU's move follows an NBR directive issued on July 6 and instructions given by the finance minister at a meeting on August 13 to prioritise out-of-court settlement of tax cases pending with the High Court through ADR.

The tax authority has asked the bank to provide the necessary explanations and evidence within the stipulated deadline so that the disputes can be resolved under the ADR mechanism.

The initiative is part of the government's broader effort to resolve long-pending tax litigation and recover disputed revenue without waiting for prolonged court proceedings.

The ADR mechanism allows taxpayers and tax authorities to seek settlement of tax disputes through an alternative process, potentially reducing the time and cost involved in litigation. M Kamaluddin Jasim, additional managing director of Islami Bank who is currently serving as acting managing director, said the bank was once among the highest taxpayers in the banking sector and had always been willing to pay its due taxes if its financial condition permitted.

"The bank's current financial condition is now too weak to pay the taxes," he said.

Islami Bank's financial position started deteriorating after 2017. Its profitability has kept declining, while it has had to disburse profits to depositors.

The bank was taken over by S Alam Group in 2017. The controversial conglomerate later extended around 80 per cent of the bank's total loans to its own companies and associated firms, according to available records, violating banking rules and regulations.

Following the fall of the Awami League government in August 2024 after the July mass uprising, the bank was freed from the group's control and began operating under the supervision of Bangladesh Bank.

The bank was also the largest holder of non-performing loans among banks as of June this year. Of the banking sector's total NPLs of around Tk 6.0 trillion, Islami Bank accounted for about Tk 989.14 billion, or 52.15 per cent of its disbursed loans.

Former ADR facilitator Syed Aminul Karim, also a former member of the NBR's income tax policy wing, said the ADR process requires willingness from both tax officials and taxpayers.

"The out-of-the-box settlement process must not be initiated only for spending time," he said.

The ADR law also needs revision so that officials involved in approving settlements are not held personally responsible for potential revenue losses, he added.

The securities regulator aims to raise awareness about scams and digital deceptions on the occasion of World Investor Week 2026.Investing

The Bangladesh Securities and Exchange Commission (BSEC), along with market stakeholders, designed the programme to make investors aware of fraudulent activities by scamsters.

Following the instruction of the International Organisation of Securities Commissions (IOSCO), an international body that brings together the world’s securities and derivatives regulators, the BSEC will observe the World Investor Week from October 4-12.

Finance Minister Amir Khosru Mahmud Chowdhury will inaugurate the opening ceremony titled “Investor Resilience, Digital Deception & Scam Alert” at the BSEC office on October 4.

Special guests of the opening ceremony, to be chaired by BSEC Chairman Masud Khan, will include Tanvir Shahriar Ghani, special assistant to the Prime Minister; Nazma Mobarek, secretary of the financial institutions division of the finance minister; and Mir Nadia Nivin, chairman of the Insurance Development and Regulatory Authority.

Talking to the FE, BSEC spokesperson Md Abul Kalam said the commission continued its effort to warn investors about social media rumours designed to lure them.

Nowadays, AI (artificial intelligence) is also being used to deceive investors, said Mr Kalam, adding that it is not possible to control the AI-based deceptions manually.

The commission would also use AI to detect the sources of deceptive content used by scamsters.

On AI-based monitoring, Mr Kalam said the BSEC was on the way to set up infrastructure to detect scams. “It will take some time to update the software. But the regulator will continue its efforts to make investors aware and take measures against the scamsters.”

In August last year, the securities regulator issued a press release to warn investors against fraud on social media platforms.

According to the findings of the BSEC’s Market Intelligence Department (BMID), the scammers were using AI to send enticing messages to WhatsApp and Telegram IDs to defraud investors.

Some fraudulent groups were offering high returns from stock market investments on social media. They first gained investor trust by giving some profits. That way, they lured investors into making larger investments before blocking all communication channels.

Other events during the observation of the World Investor Week will focus on the role of professional bodies in the capital market, managing digital risks, and smart investing.

The Dhaka and Chittagong stock exchanges, Bangladesh Association of Publicly Listed Companies (BAPLC), Central Depository Bangladesh Ltd. (CDBL), and the associations of the stock brokers and merchant banks will organise the programmes.

Bangladesh Bank (BB) has increased the size of its Pre-Shipment Credit Refinance Scheme to Tk 70 billion from Tk 50 billion to facilitate low-cost financing for exporters.

The central bank issued a circular in this regard on Thursday, directing the chief executives of all scheduled banks to implement the revised arrangements.

Under the new decision, BB will transfer an additional Tk 20 billion from the Export Facilitation Pre-finance Fund (EFPF) to the pre-shipment credit scheme.

Following the reallocation, the size of the EFPF has been reduced to Tk 30 billion from its original Tk 100 billion.

According to the circular, exporters will receive loans under the scheme at an interest rate of up to 6 percent per annum, while participating financial institutions (PFIs) will pay 3 percent interest to Bangladesh Bank for refinancing facilities.

The central bank has also stipulated that any participating financial institution failing to repay the refinanced amount within the prescribed period will have to pay interest at the prevailing bank rate for the actual period of default.

The circular allows participating financial institutions to repay the refinance facility before maturity or make partial repayments.

The latest measures have been issued under Section 45 of the Bank Company Act, 1991, and have come into effect immediately.

All other instructions issued under BRPD Circular No. 08/2022 and BRPD-1 Circular Letter No. 12/2026 will remain unchanged, the circular said.

Remittance inflows to Bangladesh slowed in September, with expatriates sending home $2.77 billion—the lowest monthly amount in 11 months.

The figure was still 3 percent higher than the $2.69 billion received in September last year, according to updated Bangladesh Bank data released on Thursday.

The slowdown marks a break from the record-setting pace seen earlier in the year.

Remittances had exceeded $3 billion a month for six consecutive months through May, before falling below that mark in June.

The latest figures show $2.82 billion came in June, followed by $2.86 billion in July and $2.97 billion in August.

Despite the recent slowdown, remittance growth remained strong in the first quarter of the 2026-27 fiscal year.

Bangladesh received $8.59 billion from July to September, up 13.3 percent from $7.59 billion during the same period a year earlier.

Remittances surged to unprecedented levels in the previous fiscal year, reaching a record $35.59 billion. The country had received $30.33 billion in 2024-25.

The strongest monthly inflow in the recent record-setting run came in March, when expatriates sent $3.75 billion. May followed with $3.44 billion, while December recorded $3.22 billion.

Commerce Minister Khandakar Abdul Muktadir yesterday asked importers to open letters of credit (LCs) quickly to increase supplies of fruits, including dates, and keep prices in check.

At a meeting with traders and representatives of relevant government agencies at the Secretariat, Muktadir asked traders how the retail price of malta (orange)had reached Tk 520 per kg after accounting for import costs, duties, taxes and other expenses.

Traders attributed the price rise primarily to a severe supply shortage, as only 12 to 29 containers of malta arrived in some weeks against an estimated daily requirement of around 15 containers, according to a press release.

Importers added that high duties, transport costs, shipping and port complications, and losses on earlier consignments had led many to cut malta imports.

In response, Muktadir assured traders that the government would review the duty on malta and urged them to source more from alternative markets and open LCs quickly to increase supplies within the next few weeks.

He also directed the Directorate of National Consumer Rights Protection to take action if evidence of malta being sold at abnormal prices is found, saying unjustified price hikes would not be allowed.

On dates, a widely consumed item during Ramadan, Muktadir said the government would announce its decision on duties and taxes on the fruit this week.

Date importers said longer shipping times caused by international transport and port-related complications made a quick decision on duties necessary to ensure adequate supplies arrived on time.

Also speaking at the event, a National Board of Revenue representative said the actual purchase prices of dates of different qualities and grades vary, but the differences are not always properly reflected in customs valuations.

The Bangladesh Trade and Tariff Commission is expected to meet importers in the coming days to work towards a reasonable indicative price for dates after verifying international source prices for different grades, before sending a proposal to the revenue board.

For the first time, the Bangladesh Bank has introduced a quarterly Monetary Policy Statement (MPS). This is a positive step as the move to review the monetary policy stance every three months instead of every six months comes at a time when inflation, investment, credit flows, and global conditions are changing rapidly.

In its first quarterly statement, the central bank has kept the policy interest rate unchanged at 9.5% for the October–December 2026 period. The aim of this change is to make monetary policy more timely and responsive by taking new information and emerging risks into account.The first quarterly statement says the main objective of the initiative is to regularly review domestic and global economic conditions and, when necessary, adjust the monetary policy stance in a timely manner.
The decision is important in the sense that, according to the Bangladesh Bureau of Statistics (BBS), inflation declined somewhat, standing at 8.32% in July and 8.26% in August, but supply-side and cost-related risks remain.High fuel and fertiliser prices, the conflict in the Middle East, and the potential impact of a new wage structure could push inflation up again. At the same time, weak industrial production, slower private-sector credit growth, and a slowdown in investment are putting pressure on economic activity.
Bangladesh Bank expects that regular reviews will help strike a balance between maintaining price stability and supporting economic activity. The Monetary Policy Committee plans to closely monitor domestic and global economic and financial developments and adjust its policy stance when necessary.

The statement also mentions incentive and refinancing programmes to support growth and help contain inflation. However, it does not specify how much the quarterly reviews are expected to reduce or increase inflation or credit growth.

In reality, the outcome will depend on the availability of reliable data, timely policy decisions and complementary measures, including reforms in the banking sector.

The central bank expects private-sector credit growth to pick up in the October–December quarter as liquidity conditions improve. However, it acknowledged that interest rates alone will not be enough to revive economic growth.

To ensure that credit reaches productive sectors, it is essential to address weaknesses in the banking sector, reduce credit risks and tackle constraints related to power, energy and infrastructure.
Against this backdrop, recent trends in Bangladesh's economy show that while inflation has eased somewhat, it is still far from a comfortable level. Weaknesses also persist in lending and investment.Alongside monetary policy, banking-sector reforms and coordinated government action on supply-side and fiscal policies will be essential to contain inflation, restore investor confidence and boost the flow of credit.One advantage of reviewing monetary policy every three months is that the central bank will not have to wait too long to respond to changes in the economy. But changes in the policy interest rate take time to feed through to lending and investment. Despite a modest cut in the policy rate, private-sector credit growth stood at just 4.75% in August, significantly lower than in previous years.

The quarterly monetary policy statement would be more useful for businesses and investors if it clearly explained the data underpinning each policy decision and the risks that could prompt a change in the policy stance. Greater clarity on these issues would help private-sector decision-makers plan with more confidence.Improving the quality of economic forecasts is also important. Alongside publishing a specific inflation forecast, Bangladesh Bank could explain how changes in fuel prices, the exchange rate, food supply or government spending could affect the outlook.If there is a gap between an earlier forecast and the actual outcome, the reasons should be explained in the following statement. This would help markets and businesses distinguish between changes driven by new information and those that signal a shift in the monetary policy stance.Removing the barriers to credit flow is equally important. High levels of non-performing loans and weak governance in banks, borrower risks and a lack of investor confidence could prevent credit from reaching productive businesses even if the policy rate is lowered.

Bangladesh Bank itself has highlighted the need to restructure banks, restore their capital, strengthen governance and improve credit discipline.

Finally, monetary policy needs to be coordinated with the government's fiscal and supply-side policies. Raising interest rates can help curb overall demand, but it cannot directly stop price increases caused by shortages of food or fuel.

Other measures are equally important, including removing bottlenecks in food imports and distribution, closely monitoring supply conditions, ensuring adequate fuel supplies and providing targeted support to low-income households.Fiscal and monetary policies also need to work in tandem to ensure that government borrowing and the budget deficit do not undermine the objectives of monetary policy.The quarterly monetary policy statement has shortened the policy review cycle, giving the central bank more scope to respond quickly to changes in the economy. Its effectiveness, however, will depend on the timeliness of data, the credibility of forecasts and the transparency of policy decisions.With regular reviews, the approach should ideally make it easier to see how new information shapes policy decisions and the reasoning behind them. Alongside monetary policy, banking-sector reforms and coordinated government action on supply-side and fiscal policies will be essential to contain inflation, restore investor confidence and boost the flow of credit. The author is a Distinguished Fellow at the Centre for Policy Dialogue (CPD).

Japan's unemployment rate climbed to 2.5 percent in August from 2.4 percent in July, marking the first deterioration in five months, government data showed Friday.

The number of people with jobs rose by 30,000 from the previous month to a seasonally adjusted 68.34 million, according to the Ministry of Internal Affairs and Communications.

Of those out of work, 810,000 quit their jobs voluntarily, typically in pursuit of better working conditions, up 8.0 percent from July, while 400,000 were let go by their employers, an increase of 5.3 percent.

Meanwhile, the number of people newly looking for work grew 2.2 percent to 460,000, according to the ministry.

Separate data from the Ministry of Health, Labor and Welfare showed the job availability ratio in August stood at 1.18, unchanged from the previous month, meaning there were 118 job opportunities for every 100 job seekers.

By industry, job openings fell from a year earlier in eight of the 11 sectors, led by an 11.1 percent drop in accommodation and restaurant services, followed by a 10.2 percent decline in wholesale and retail, the labor ministry said.

Of the three sectors that posted increases, manufacturing rose 3.9 percent, and information and communications gained 3.3 percent.

Confidence Power and Energy PLC, a power-sector company under Confidence Group, will hold a roadshow on 18 October as it moves ahead with plans to raise capital from the primary market through an initial public offering (IPO) under the book-building method.

According to company sources, the roadshow, aimed at institutional investors, will begin at 7pm at the Radisson Blu Water Garden Hotel in Dhaka. Eligible investors will also be able to participate virtually through a dedicated digital platform.

At the event, the company will present its financial performance, business outlook and planned capital expenditure to potential institutional bidders ahead of the share-price discovery process, according to the company.

Under the book-building system, eligible institutional investors submit bids within the prescribed framework, and the bidding process is used to determine the cut-off price of the shares before the IPO is offered to other investors.

The company has invited a broad range of eligible investors to the roadshow, including merchant banks, portfolio managers, asset management companies, stock dealers, commercial banks, financial institutions, insurance companies, fund managers, alternative investment funds, non-resident investors with registered security custodians, and recognised provident and pension funds.

UCB Investment Limited is acting as the issue manager for the proposed IPO, while Prime Bank Investment PLC is serving as the registrar to the issue.

Confidence Power and Energy was established in 2017 as a concern of Confidence Group. The company currently operates four independent power producer (IPP) plants in Bogura, Rangpur and Chattogram, along with an oil and shipping plant at the Natakhola shoreline.

Its power-generation portfolio comprises 31 MAN and Rolls-Royce engines with a combined generation capacity of 394 megawatts.