To revitalise the economy and steer it towards the long-term trillion-dollar goal, the government has adopted the 3R strategy – Recovery and Stabilisation, Restoration, and Reconstruction for Acceleration.

Aligned with this broader strategy, the Investment Corporation of Bangladesh (ICB) has formulated a phased institutional restructuring and transformation plan.

In the short term, it aims to ease financial pressures and restore operational capacity; in the medium term, boost revenue, diversify investments and expand business capacity; and in the long term, ensure sustainable growth and institutional transformation.

The framework reflects ICB's efforts to strengthen its financial and operational sustainability in line with the broader objectives of the government's 3R strategy.

Five decades of journey

After independence, trading on the Dhaka Stock Exchange resumed on 16 August 1976, following a five-year interruption. Just one and a half months later, on 1 October 1976, the ICB was established as the country rebuilt its economy.

With a nascent capital market, limited investment opportunities and growing demand for long-term industrial finance, mobilising savings for productive investment was a national priority.

Against this backdrop, the government established ICB under Ordinance No 40 of 1976 with four clear mandates: (1) to encourage and broaden the base of investment; (2) to develop the capital market; (3) to mobilise savings; and (4) to provide for matters ancillary thereto.

ICB also supported the supply of shares by providing equity support to industrial and manufacturing enterprises through underwriting and bridge financing.

Five decades on, Bangladesh's economy and capital market have transformed significantly, yet the core objectives behind ICB's establishment remain relevant. ICB's journey thus reflects both the evolution of Bangladesh's investment landscape and its continuing contribution to national economic development.

Contributions to industrialisation and capital market development

ICB's role has extended beyond capital-market development to supporting industrialisation and entrepreneurship.

From its early years, it provided long-term financial support to enterprises through equity participation, debentures, preference shares, underwriting, bridge finance, pre-IPO placement and lease financing for capital machinery – helping address the long-term funding needs of industries when conventional bank financing was often limited.

ICB has invested over Tk8,900 crore directly and Tk27,900 crore indirectly to support industrialization through equity, debentures, preference shares, and lease financing, backing major enterprises like Square, Beximco, ACI, and Titas Gas.

In June 1977, ICB launched the Investors' Scheme, providing margin loans to small investors to purchase DSE-listed shares and ICB Unit Fund certificates. Benefiting around 77,000 investors, the scheme broadened retail participation and helped build a sustained demand base for securities.

Launched Bangladesh's first closed-end mutual fund in 1980 and first open-end fund (ICB Unit Fund) in 1981. The ICB Unit Fund grew from Tk15 crore to Tk5,000 crore, distributing Tk6,563 crore in total dividends (including a historic 1,000% cash dividend in FY 2014–15).

As of April 2026, ICB and its subsidiaries manage 26 of the country's 136 mutual funds, representing 51% (Tk6,801 crore) of the total mutual fund industry market value. Of the 136 mutual funds currently operating in the market, ICB serves as Trustee for 67 funds and Custodian for 59, reflecting its significant role in Bangladesh's mutual fund industry.

Current realities – key challenges

A sound institutional strategy requires a realistic assessment of financial standing, cash flows, asset-liability structures, operational capabilities, risks and regulatory constraints to identify root causes and prioritise reforms.

A review of ICB reveals deep-seated financial, structural and operational bottlenecks. Key challenges identified include:

High-cost borrowings, high interest expenses, unpaid principal and interest liabilities, and critical maturity mismatches between short- and medium-term borrowings and long-term investments.
Severe liquidity constraints, non-performing project loans, substantial long-overdue FDRs with financial institutions, and a shortage of saleable securities.
A substantial decline in portfolio market value relative to acquisition cost, significant provisioning shortfalls, and substantial capital locked in inactive, non-operational or unlisted companies.
Combined, these structural vulnerabilities severely erode ICB's income-generating capacity, financial stability, ability to intervene in the market and scope for business expansion.

Loan burdens

A comparative analysis of ICB's financial position between FY11 and FY26 up to December showed that ICB's liabilities, interest expenses and investment portfolio increased substantially, while its overall income remained largely unchanged.

Over the past one and a half decades, total borrowings increased from Tk2,341 crore to Tk14,043 crore, while annual interest expenses rose from Tk185 crore to Tk1,101 crore.

In contrast, annual gross income declined from Tk668 crore to Tk636 crore. Consequently, interest expenses now stand at 173% of annual income, or approximately 1.73 times total income.

During the same period, the investment portfolio at cost increased from Tk1,504 crore to Tk14,116 crore, while its market value stood at Tk8,609 crore as of December FY26, leaving an unrealised loss of Tk5,507 crore, compared with an unrealised gain of Tk1,519 crore in FY11.

The comparative position indicates a significant imbalance between ICB's liability structure, asset base and income-generating capacity.

The sharp increase in high-cost borrowings and associated interest expenses has placed sustained pressure on liquidity and reduced the financial capacity available for new investment and sustainable income generation.

Integrated revival plan for ICB

To navigate its financial crisis, ICB has proposed an Integrated Financial Restructuring and Institutional Transformation Framework spanning three execution phases. The strategy focuses on debt reduction, capital restructuring, and modernising operations to restore long-term profitability.

1. Short-term plan: As the country's only state-owned financial institution and merchant bank, ICB has formulated the following short-, medium- and long-term measures involving support from the Government and/or Bangladesh Bank.

Proposed Tk10,000 crore in low-cost funding from the government
Securitisation of Jamuna Bridge toll revenues
2. Medium-term plan

Debt-to-equity swap and issuance of preference shares;
Development and utilisation of new and diversified investment products, including Alternative Investment Funds (AIFs), Exchange-Traded Funds (ETFs), Sukuk, corporate bonds, and Systematic Investment Plan (SIP)/Target Investment Plan (TIP) products.
3. Long-term plan

Expansion of the branch and service network, digital transformation, and development of a technology-driven modern ICB;
Strategic partnerships and effective utilisation of ICB's nationwide network;
Introduction of a Real Estate Investment Trust (REIT).
Considering ICB's prevailing financial and institutional circumstances, the proposed plan is not confined to any single intervention. Rather, it constitutes an integrated Financial Restructuring and Institutional Transformation Framework designed for implementation across three distinct phases—short, medium and long term.

The overarching objectives are to reduce the burden of liabilities, restructure the capital base, enhance operational efficiency, create new and sustainable sources of income, and ultimately transform ICB into a stronger, more resilient and modern financial institution.

The current situation is viewed not merely as a financial challenge but also as an opportunity to fundamentally restructure and modernise ICB.

ICB's short-term recovery centres on securing Tk10,000 crore in 10-year, low-cost funding from the Government/Bangladesh Bank to replace existing high-cost borrowings (10.00-11.50%).

Of the funds, 70% will be dedicated to paying off high-interest borrowings to reduce debt pressure, while 30% will be invested in liquid, income-generating securities to boost recurring cash flow.

With the execution of the plan, the expected outcomes include annual savings of Tk450 crore in interest expenses and additional annual income of Tk350 crore through dividends and capital gains.

Total annual value creation is expected to reach Tk800 crore, resulting in a net improvement in ICB's financial standing. The plan would also mitigate severe maturity mismatches between short-term borrowings and long-term investments, ease immediate liquidity constraints, and reduce reliance on expensive credit facilities.

It creates a sustainable pathway to return to profitability by Year 2 and significantly lower total debt over 10 years. The way forward ICB's current financial challenges are the cumulative result of high-cost borrowings, elevated interest expenses, liquidity constraints, asset-liability maturity mismatches, and limitations in its existing investment structure.

Against this backdrop, the proposed Tk10,000 crore long-term, low-cost funding should not be viewed merely as a financing measure to address ICB's immediate financial pressures. Rather, it represents a strategic initiative for ICB's long-term financial restructuring, restoration of institutional capacity, and re-establishment of its developmental role in the capital market. If successfully implemented, the plan could strengthen ICB's financial foundation, capital structure, and investment capacity.

At the same time, it could contribute to increased liquidity and institutional participation in the capital market and create an opportunity for ICB to play a stronger role in reinforcing stability across the broader financial system of Bangladesh.

Jamuna Bridge toll revenue securitisation

To secure long-term, low-cost financing for large-scale infrastructure, a proposal has been developed to issue Sukuk Al-Ijarah backed by the future toll revenues of the Jamuna Bridge.

This initiative mobilises capital market financing while introducing a new Shariah-compliant investment product. Backing the securitisation with government-owned assets guarantees stable cash flows, opening opportunities for domestic and international investors – especially Islamic banks and financial institutions – while deepening Bangladesh's Sukuk market.

Implementation of this initiative will yield substantial benefits for the Government, the financial sector, and ICB. It unlocks long-term domestic funding from future toll revenues while retaining public ownership of the asset and financing new development projects without reliance on bank loans or foreign debt.

Furthermore, it attracts private, institutional, and Shariah-compliant investors, thereby boosting capital market depth and liquidity.

The Sukuk also serves as an eligible asset for banks to meet Statutory Liquidity Requirement (SLR) mandates.

For ICB, it creates recurring fee-based income by establishing the institution as a market leader in issue management, trustee services, SPV administration, and financial advisory. Ultimately, this successful model offers a scalable blueprint for monetising other revenue-generating state assets across the country.

The state-run Investment Corporation of Bangladesh (ICB) has considered expanding trading services across the country to generate additional income to overcome its financial woes.

As per a proposal approved by the ICB board of directors, separate trading wings will open at the branches of the ICB’s corporate sponsors— state-run banks. ICB will execute trades at those wings on behalf of their sponsors in exchange for brokerage commission.

The banks will launch trading in their branches on receiving an approval from the central bank.

Initially, the brokerage services will be introduced at the branches in divisional headquarters.

ICB’s Managing Director Niranjan Chandra Debnath confirms that the proposal has already been approved and that ICB’s corporate sponsors have also accepted it.

ICB’s sponsors, such as Sonali Bank, Janata Bank, and Agrani Bank, conduct securities trading through the ICB Securities Trading Company Ltd. (ISTCL) as the banks do not have DP (depository participatory) licences. The Corporation also executes trades on behalf of other banks, which are not its sponsors, such as Rupali Bank and BASIC Bank. They will also be able to open trading wings.

The ICB managing director said the banks need not inject capital for logistic support to provide trading services at their branches. Only a computer and an employee apart from the infrastructure the bank branches already have would be enough to facilitate trading.

“The regular clients of the banks will get trading services at the branches,” Mr. Debnath said.

The services would also increase the income of the banks through the sale of their own products, including margin loans linked to securities trading.

“The banks will immediately seek permission from the central bank for launching the services,” said Mr. Debnath.

Presently, ICB’s operation outside Dhaka is very limited because of a limited number of branches of its own and its subsidiaries.

The ISTCL has only seven branches across the country while private firm LankaBangla Securities has more than 10 branches in Chittagong city and its outskirts. The operational gap is as wide when ISTCL is compared with other major investment firms.

ICB’s client base will expand significantly if it can provide trading services through the branches of its sponsors.

“Sonali, Janata and Agrani Bank have thousands of clients who will not need to open bank accounts for accessing trading services. It [trading wing] will create a win-win situation for both ICB and its owners,” said the ICB MD.

Sonali, Janata, and Agrani Bank each has more than 20 branches in Chittagong city alone.

If every branch initially provides trading services to at least 20 clients, the number of clients will come to 1,200 in Chittagong city. This number will soar if ICB can operate in all divisional headquarters through bank branches.

The expansion has been designed at a time when the Corporation is in a dire strait. It reported its first-ever annual loss of Tk 1.21 billion in FY25 due to investment losses, higher provisioning, and expensive borrowing. A year earlier, it earned a profit of Tk 326.8 million amid a downward pressure on income since FY22.

Imprudent portfolio management before 2024 was another major reason behind ICB’s stepping into the red.

As part of a broader revival strategy, the Corporation will seek another Tk 100 million from the government and will look to work with the government to help raise public funds through securitization of large and important public infrastructure projects.

Meanwhile, the Corporation on Thursday celebrated its 50th anniversary at a city hotel, attended by Finance Minister Amir Khosru Mahmud Chowdhury and the top brass of the finance ministry and the securities regulator.

At the programme, the finance minister and the chairman of the securities regulator stressed the need for raising the ICB’s operational standards to match those of private financial firms for the sake of its survival and progress.

They advised the Corporation to improve its professionalism and operational efficiency.

A high-level World Bank delegation is visiting Bangladesh to discuss the country's ongoing energy challenges, energy security and infrastructure reforms with the government, as Dhaka faces growing financial pressure from fuel imports and volatile global energy prices.

The four-member delegation, led by Pankaj Gupta, World Bank's regional director of South Asia Infrastructure, arrived in Dhaka today (3 October) and will hold meetings with relevant ministries and agencies until 7 October.

During the visit, the delegation will discuss policy issues surrounding the power and energy sector, financing for fuel imports, energy supply security, renewable energy, sectoral reforms, private investment and institutional capacity building.

Gayle H Martin, operations manager at the World Bank's Dhaka office, informed Md Ahsan Kibria Siddiqui, additional secretary at the Economic Relations Division (ERD), about the visit in a letter.

According to the letter, one of the key objectives of the visit is to discuss strategies to ensure affordable, reliable and sustainable energy supplies in Bangladesh. The delegation will also review the progress of ongoing World Bank-financed energy projects and discuss projects in the pipeline.

The visit comes as Bangladesh faces mounting pressure from volatile global energy prices, foreign exchange constraints and high import bills. The country relies heavily on imported liquefied natural gas (LNG), fuel oil and coal to meet electricity generation and industrial demand.

The World Bank has also noted that Bangladesh's reliance on imported LNG has exposed the country to global fuel-market volatility and pressure on foreign exchange reserves and public finances.

Petrobangla has been under significant financial pressure because of the high cost of LNG imports. Although the government has undertaken fresh gas exploration and production initiatives, managing the cost of imported LNG remains a major challenge.

The Bangladesh Petroleum Corporation (BPC) is facing similar pressure in the petroleum sector.

According to BPC officials, the corporation incurred losses of around Tk22,876 crore between March and August this year as international fuel prices and transportation costs rose. The government has also provided BPC with a Tk4,500 crore loan to meet fuel import costs and maintain uninterrupted supplies.

Bangladesh has already received substantial World Bank support to finance LNG imports. In May this year, the World Bank approved an additional $350 million under its Energy Sector Security Enhancement Project to help Petrobangla secure LNG supplies through more cost-effective financing mechanisms and reduce reliance on expensive spot-market purchases. This followed the original $350 million project approved in June 2025, taking the World Bank's financing under the project to $700 million.

The additional financing is backed by an International Development Association payment guarantee and is intended to support payment security for LNG imports through standby letters of credit and short-term credit lines. The World Bank said the financing would help Bangladesh move towards more predictable, longer-term LNG procurement arrangements.

The delegation is also expected to discuss the progress and future financing of World Bank-supported energy projects, including initiatives related to renewable energy and institutional capacity building.

Bangladesh has been pursuing measures to strengthen energy security by expanding renewable energy, accelerating gas exploration and production, and moving towards market-based energy pricing.

The World Bank has long supported Bangladesh's renewable energy sector through financing and technical assistance. Its projects include the Scaling-up Renewable Energy Project, under which a 75MW grid-connected solar power plant was developed in Sonagazi, Feni, as well as support for rooftop solar and rural renewable energy projects through the Infrastructure Development Company Limited (IDCOL).

The discussions will extend beyond the energy sector to major transport infrastructure and urban development projects. The delegation is expected to discuss increased World Bank investment in Chattogram's Bay Terminal development project and the Dhaka-Chattogram Logistics and Transport Corridor, one of the country's key economic corridors.

The delegation will also review progress on railway infrastructure development and strategic planning, inland water transport infrastructure, sustainable urban development and measures to strengthen cities' resilience to climate change.

Land management reforms, institutional capacity building in local government and various water resources management initiatives will also feature in the discussions.

According to the letter, the World Bank delegation will meet senior officials from the Ministry of Finance; Ministry of Power, Energy and Mineral Resources; Ministry of Road Transport and Bridges; Ministry of Railways; Ministry of Shipping; Ministry of Local Government, Rural Development and Co-operatives; Ministry of Water Resources; IDCOL and other government and private-sector institutions during the visit.

Stocks returned to the red this week, snapping a two-week rally, as a fresh fuel-price shock, persistently high borrowing costs and concerns over corporate earnings prompted investors to retreat to the sidelines.

Market participants said the latest Tk 20-per-litre fuel-price increase emerged as a fresh concern for the equity market, with higher transport, production and distribution costs threatening to squeeze corporate profit margins.

"The market was already under pressure, while the latest fuel-price hike emerged as a major concern for the equity market because of its potential impact on corporate earnings," said a leading stockbroker.

He said the higher fuel costs could translate into slower earnings growth for many listed companies in the coming quarters.

The concern was compounded by Bangladesh Bank's decision to keep its policy rate unchanged at 9.5 per cent until December, reinforcing expectations that borrowing costs would remain elevated for some time.

A prolonged tight monetary stance could keep corporate financing costs high and limit the scope for an investment-led recovery. It could also make fixed-income instruments relatively attractive to risk-averse investors compared with equities.

Most investors were adopting a wait-and-see approach in the absence of strong positive triggers, while persistent domestic economic challenges continued to weigh on risk appetite, said the stockbroker.

"Investors are not seeing enough positive catalysts to take fresh positions aggressively," said another leading broker, adding that investors were reassessing their portfolios and shifting towards stocks with relatively stronger fundamentals or those that had undergone significant corrections.

The market started the week on a downbeat note as investors remained concerned about weaker earnings from June-closing companies and reshuffled their equity exposure accordingly.

The bearish momentum persisted through most of the subsequent sessions as investors remained cautious amid domestic economic challenges and a lack of fresh catalysts. Intermittent bargain hunting around the middle of the week failed to generate enough momentum for a sustained recovery.

Subsequently, of the five trading sessions, four closed lower and only one ended higher.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) lost 46 points, or 0.84 per cent, over the week to close at 5,532, eroding much of the gains accumulated during the previous two weeks.

The DS30 index, comprising blue-chip shares, shed 9 points to 2,103, while the Shariah-based DSES index lost 16 points to 1,100.

Selective large-cap stocks, including Pubali Bank, Walton Hi-Tech Industries, LafargeHolcim Bangladesh, Bank Asia and BAT Bangladesh, together contributed more than 13 points to the weekly decline in the DSEX.

Trading activity also weakened, with total turnover on the DSE falling to Tk 35.31 billion from Tk 39.30 billion in the previous week. Average daily turnover declined 10 per cent to Tk 7.06 billion from Tk 7.86 billion.

The textile sector dominated turnover, accounting for 26.4 per cent of total trading activity. General insurance followed with 18.6 per cent, while pharmaceuticals accounted for 10.9 per cent.

Market breadth remained firmly negative, with 280 issues declining against 89 advancing, while 14 remained unchanged.

Most sectors closed in the red. Among the major sectors, non-bank financial institutions recorded the steepest decline of 2.7 per cent, followed by engineering, food, power, telecom, pharmaceuticals and banking.

Saiham Textile emerged as the week's most-traded stock, with shares worth Tk 1.56 billion changing hands. IPDC Finance, Paramount Textile, Malek Spinning and BRAC Bank followed in turnover.

The Chittagong Stock Exchange (CSE) also ended the week lower. Its All Share Price Index (CASPI) shed 81 points to close at 14,831, while the Selective Categories Index (CSCX) lost 47 points to 9,100.

Amid increasing container flow at the Pangaon Inland Container Terminal (PICT) in Dhaka, the Chittagong Port Authority (CPA) has taken the initiative to expand facilities at the terminal, which has failed to attract exporters and importers for years.

Average monthly container handling at the terminal, which stood at 242 twenty-foot equivalent units (TEUs) in 2024 and 366 TEUs in 2025, rose to around 900 TEUs in the seven months to August this year after the government handed over the terminal to a foreign operator, Switzerland-based logistics firm Medlog.

Against this backdrop, the CPA has invited private firms to develop and operate cargo and container handling facilities on 22 acres of land that remains vacant.

The port authority seeks private investment to manage, develop, supply, maintain and operate the facilities on the vacant land for 22 years, according to a tender published on September 22.

“We have taken the step for proper utilisation of the vacant land,” said CPA Secretary Syed Refayet Hamim.

The Pangaon ICT was built on the bank of the Buriganga River in Keraniganj in 2013 jointly by the CPA and the Bangladesh Inland Water Transport Authority (BIWTA) at a cost of Tk 154 crore. It was intended to ease pressure on the Dhaka-Chattogram highway and railway corridors caused by cargo movement.

The CPA took a lease of 48.24 acres of land from the BIWTA to develop the terminal.

The current facility, under the management of Switzerland-based logistics firm Medlog SA, covers 26 acres. There are 22 acres of vacant land beyond the current facility, according to CPA Secretary Refayet.

The terminal had struggled to attract businesses transporting containerised cargo to and from Chattogram Port because of high inland water transport costs, lengthy customs clearance and other obstacles.

The situation has improved since Medlog Bangladesh Private Ltd, a concern of Medlog SA, started operating the terminal on January 17 this year.

As per the tender, interested firms, including their parent or holding companies, must have at least five years of experience in loading and discharging containers to or from vessels, according to the tender document.

They must also have experience in handling, storing and delivering containers and containerised cargo using their own equipment and manpower, with an annual handling capacity of at least 70,000 twenty-foot equivalent units (TEUs) at any inland river terminal or river port at home or abroad.

ATM Anisul Millat, managing director of Medlog Bangladesh, said container transport through the terminal had already exceeded the total annual throughput of 4,400 TEUs by June this year. He said his firm was interested in participating in the bidding to manage and develop the 22 acres of vacant land at the terminal.

Bangladesh Bank’s first-ever quarterly Monetary Policy Statement is an important institutional change. Moving from half-yearly to quarterly reviews should make monetary policy more responsive to rapidly changing domestic and global conditions. But greater frequency will matter little unless policy becomes more effective in addressing Bangladesh’s difficult combination of persistent inflation, weak investment and financial-sector stress.

The decision to keep the repo rate unchanged at 9.5 percent is understandable. Headline inflation declined to 8.26 percent in August, but non-food inflation remained stubbornly high at 9.32 percent. Higher fuel prices and the possible implementation of the new pay scale create additional inflationary risks. Another rate cut at this stage could therefore have been premature.

The larger concern is monetary transmission. Private-sector credit growth was only 4.75 percent in August despite substantial liquidity in the banking system. Bangladesh Bank acknowledges that policy-rate changes are transmitted relatively quickly to market rates but not effectively to private credit and the real economy. This raises a fundamental question: how much can interest-rate policy achieve when the banking channel itself is severely impaired?

Here, banking reform deserved much greater prominence in the MPS. The statement recognises the problem: non-performing loans have reached 32.78 percent, capital erosion is significant, and liquidity is unevenly distributed across banks. Yet banking reform appears largely as one among several supporting conditions rather than as a central component of monetary-policy effectiveness. That understates the seriousness of the problem. Bangladesh’s banking sector accounts for around 90 percent of financial-sector assets, while weak governance, regulatory capture and related-party lending remain major vulnerabilities.

The policy challenge therefore extends beyond keeping rates high or cutting them. Bad loans must be recognised and resolved, weak banks must be restructured, connected lending must be disciplined, and bank supervision must be made credible. Fiscal policy must also reduce excessive dependence on bank borrowing, while exchange-rate flexibility and supply-side measures should complement monetary policy.

Quarterly reviews are a useful reform. But institutional frequency cannot substitute for institutional effectiveness. Unless banking reform becomes central to the monetary-policy framework, Bangladesh Bank risks adjusting the price of credit while the machinery that allocates credit remains fundamentally impaired.

The writer is a professor of economics at Dhaka University and the executive director of SANEM.

Turkish Airlines is seeking to add three weekly flights on its Dhaka-Istanbul route, raising its services to 10 a week from the current seven, as Bangladesh and Turkey look to strengthen air connectivity.

Civil Aviation and Tourism Minister M Rashiduzzaman Millat welcomed the airline’s interest during a meeting with a Turkish delegation at the Secretariat yesterday, saying there would be greater scope for additional flights once the third terminal of Hazrat Shahjalal International Airport becomes operational.

Bangladesh has a growing international passenger market, with more than 1 crore passengers travelling each year, according to industry insiders.

The minister urged Turkish Airlines to consider launching direct flights from Shah Amanat International Airport in Chattogram and Osmani International Airport in Sylhet, citing demand for international travel among people in the two regions, including a large number of expatriate Bangladeshis.

He said additional services from the two airports would make international travel more convenient for passengers and further strengthen connectivity between Bangladesh and Turkey.

Turkish Ambassador to Bangladesh Ramis Şen led the delegation. Bilal Belyurt, commercial counsellor at the Turkish Embassy, and İslam Güre, country manager of Turkish Airlines in Bangladesh, were also present at the meeting.

Turkish Airlines began operations in Bangladesh in December 2010 with four weekly flights between Dhaka and Istanbul via Karachi. It switched to direct Dhaka-Istanbul services on March 25, 2012, initially operating four flights a week.

During the meeting, the two sides discussed ways to strengthen cooperation in aviation, tourism, investment and people-to-people connectivity.

Millat said Bangladesh and Turkey have longstanding friendly relations, with considerable scope for expanding cooperation in tourism, culture and connectivity.

Tourism investment also featured in the discussions.

The minister said the government has taken an initiative to develop 1,498 tourism spots across Bangladesh under public-private partnerships (PPPs) and is encouraging foreign investors to participate in developing infrastructure, management and services at the destinations.

He invited Turkish investors to invest in Bangladesh’s tourism sector, noting that Turkey’s experience in tourism development, hospitality and related industries could contribute to the sector’s growth in Bangladesh.

The two sides also discussed easing visa procedures for Bangladeshi citizens.

Millat said easier visa facilities would help boost travel, business, tourism and people-to-people exchanges between the two countries, calling for effective initiatives by both sides in this regard.

Both sides expressed interest in further strengthening cooperation in aviation, tourism and investment, as well as expanding exchanges between the people of the two countries.

The dollar stood near this year's high versus the euro on Wednesday and was poised for the largest monthly rise against it in 14 months, powered by US growth and rising US interest rates in contrast to the energy and debt worries swirling in Europe.

On Tuesday the euro dipped to its lowest since May 2025, at $1.1312, and it traded nearby at $1.1339 in Asia on Wednesday. The euro is also testing support around 178 yen.

The dollar is up nearly 2.5 percent on the euro in September and it is set to notch a third straight quarterly rise.

The stronger greenback has also pushed the Australian dollar below 70 cents for the first time since early August, with the Aussie slipping to a nine-week low of $0.6959 after inflation data came in a fraction under forecasts.

"The US economy is running hot, Europe is losing the global AI race, and energy supplies and French politics remain big concerns for the euro," said Brent Donnelly, president of foreign exchange trading at analytics firm Spectra Markets.

Earlier this month benchmark European gas prices spiked to their highest since 2022.

French markets are under pressure from debt and political gridlock, ahead of next year's presidential election, and the spread with German yields has blown beyond 115 basis points to its widest since 2012.

A skew in options prices has tipped sharply in recent sessions to show traders favour buying protection against further euro falls — though Donnelly says the dollar probably needs strong US data to make headway from here.

The dollar also hit a 16-1/2-month top on the Swiss franc on Tuesday at 0.8358 francs. The franc has suffered, in part, because investors have gone looking for low-yielding alternatives to yen to sell in search of carry elsewhere.

The yen has fallen out of favour as a short against the dollar following US-Japan yen buying in July and August, which has been followed by warnings not to test their resolve, as well as a pickup in the pace of Japanese rate hikes.

The dollar has dropped 2 percent on the yen in September and almost 3.8 percent over the third quarter, touching a low of almost two weeks at 156.38 in Asia trade.

The Fed's preferred inflation yardstick, US core PCE, is due out later on Wednesday though the market is focused on Friday's US jobs report which, if strong, could reinforce expectations that US interest rates are on the rise.

Some of those expectations took a hit overnight when influential New York Fed President John Williams said there is "no need for urgency" in raising rates. Two-year Treasury yields fell about 3.5 basis points and Fed funds futures pricing for a rate hike next month dialled back to 50 percent from 71 percent.

The New Zealand dollar, which hit its lowest since last November on Tuesday, was pinned at $0.5645.

Sterling touched a three-month trough on Tuesday and last sat nearby at $1.3230. The yuan headed for its seventh straight quarterly gain on the dollar in its final session before China's October 1-7 holidays.

Market experts, regulators, academics and corporate leaders have called for a phased and practical implementation of the proposed BSEC Corporate Governance Rules 2026, saying board oversight must remain realistic while strengthening investor confidence in Bangladesh's capital market.

They made the call at a roundtable titled "Strengthening Corporate Governance in Bangladesh", organised by SMAC Advisory Services Limited at a city hotel on Tuesday. Bangladesh Securities and Exchange Commission (BSEC) Commissioner Hossain Sadat attended as the guest of honour and discussed the draft Corporate Governance Framework 2026.

Opening the session, Snehasish Barua, managing director of SMAC Advisory Services, highlighted the importance of independent directors, accountability and transparency in creating long-term corporate value.
Presenting a comparison of regional governance frameworks, Zareen Mahmud Hosein, director of SMAC Advisory, recommended a phased rollout, clearer definitions and valuation guidelines for related-party transactions (RPTs), proportionate risk oversight, and a roadmap for ESG reporting aligned with IFRS S1 and S2 standards.

Panellists also highlighted the need to tailor governance requirements to the realities of individual companies.

Corporate governance expert Lopa Rahman said leadership effectiveness should be assessed against clearly defined expectations, while Melita Mehjabeen, chairman of National Bank PLC, stressed that boards need to balance oversight responsibilities with each company's specific structure.

Syed A Mamun, council member of ICMAB, called for a flexible framework that recognises differences among listed companies without weakening governance standards. Nurul Alam, president of IIAB, emphasised directors' professional competence and understanding of business operations.

On compliance and related-party transactions, Afseen Baten, additional director at ICAB, called for valuation-based assessments to strengthen audit committee oversight.

In his closing remarks, BSEC Commissioner Hossain Sadat said the commission would carefully consider stakeholders' feedback while formulating an investment-friendly governance framework within this year.

He said protecting investor rights and ensuring transparency would remain priorities despite resource constraints, as these are essential to attracting both domestic and foreign investment.

Bangladesh Bank has held its policy rate steady at 9.5 percent for the second quarter of the fiscal year, keeping all other monetary policy targets unchanged from the previous statement.

The central bank unveiled the policy for October-December on Wednesday, with Deputy Governor Habibur Rahman setting out the targets at a media briefing at 3pm.

The rate has stayed unchanged since July, when the central bank trimmed it by 50 basis points from 10 percent—the level set in its last policy statement, in June.

Habibur said the current level remained relatively high compared with those of Bangladesh’s peer countries.

He described the current monetary policy stance as somewhat contractionary, or tight, given the level of the rate.

Why Three Months

Bangladesh Bank said when announcing its monetary policy in June that it would move to announcing the policy every three months.

Explaining the change, Habibur said the three-month cycle is common internationally, while neighbouring India reviews its policy every two months.

Bangladesh cannot yet follow a shorter cycle because sufficient economic data are not available, the deputy governor added.

Import-export data are updated every month and become available soon after the end of each month. But data for other economic indicators are not available as quickly.

Habibur pointed to Bangladesh Bureau of Statistics data, saying figures for some indicators, particularly industrial production, come much later.

Inflation Remains A Concern

The policy rate remains somewhat higher than the inflation rate, meaning the real interest rate observed in the market is still positive, the official said.

He described this as an indicator of the “tight or contractionary” monetary policy stance.

The deputy governor flagged fresh uncertainty over the inflation outlook, warning that the recently announced pay scale hike for government employees could add to demand-side pressures and put the ongoing disinflation trend at risk.

“There’s some hesitation on our part about how far that disinflation path can hold going forward,” he said.

That uncertainty, he added, was behind the decision to keep the policy rate unchanged.

The monetary policy statement is usually delivered by the Bangladesh Bank governor, but he was absent from Wednesday’s briefing.

Habibur attributed this to the governor being occupied with official government duties.

China has vowed a "resolute response" to safeguard its industries if the European Union goes ahead with restrictions against Chinese companies or products, according to its commerce ministry.

The ministry was referring to a reported joint document drafted by some EU member states pushing for a tool to tackle unfair trade and take more forceful measures against China.

The tool amounts to a "typical protectionist and unilateralist measure", and will disrupt stability of China-EU trade, the ministry said in a statement late on Tuesday.

"If the European side engages in talks and consultations with China, while increasingly pressuring China, it will seriously undermine mutual trust, interfere with the overall process of consultation," the ministry cautioned.

China could respond with a "strong policy toolbox" that includes anti-discrimination probes, security investigations into industrial and supply chains and could also look into the impact of foreign subsidies, state-backed newspaper Global Times reported on Wednesday, citing an unnamed Chinese observer as saying.

Global Times linked the warning to an article by Rhodium Group's senior adviser on Europe-China ties, Noah Barkin, who said Germany and France were finalising a joint paper this week to call on the European Commission to fast-track development of an instrument that mirrors the United States' Section 301 unfair trade practices provision, to deter China in the EU market.

The exchange rate applied by the sole ground handler Biman Bangladesh Airlines to export cargo has remained significantly higher than prevailing bank rates for months, squeezing the margins of local freight forwarders while giving foreign airlines a financial advantage in Bangladesh's air cargo market, industry insiders say.

The gap stood at Tk2.83 per dollar in July, and although it has narrowed recently, Biman's rate was still Tk1.15 higher than Sonali Bank's TT Clean rate on 8 September, according to the Bangladesh Freight Forwarders Association (Baffa).

Biman has set its exchange rate at Tk123.65 per dollar for export cargo from 8 September, while Sonali Bank's TT Clean rate was Tk122.50 on the same day, Baffa said.

The association said the higher rate directly increases costs for freight forwarders, while foreign airlines – which handle around 85% of Bangladesh's air cargo exports – are the main beneficiaries of the higher rate.

Baffa President Md Ariful Hasan raised the issue in a letter to Biman's managing director on 13 September, urging the national flag carrier to review the exchange rate based on market conditions and prevailing bank rates.

The association said the higher rate was causing direct financial losses to freight-forwarding companies and increasing the overall cost of Bangladesh's exports.

There are mainly two methods of paying freight for export shipments – freight prepaid and freight collect, according to sector insiders. Under the prepaid method, the exporter pays the freight in advance. Under the freight collect method, the importer pays the freight after the goods reach their destination.

"About 10% of export shipments are transported under the prepaid method, while the remaining 90% use the freight collect method. As a result, most of the problems arising from exchange-rate differences are related to freight collect shipments," said freight forwarder Nasir Ahmed.

Under the prepaid method, the exporter bears the freight cost for transporting the goods to their destination. Under the freight collect method, the foreign importer pays the freight at the destination.

In the latter case, freight forwarders incur losses when there is an exchange-rate difference between collecting the freight from the foreign party in US dollars and paying the local airline in taka.

The sector insiders said Biman itself handles around 10% of total export cargo, meaning foreign carriers handling the bulk of Bangladesh's air cargo stand to gain more from the higher exchange rate.

Currently, around 38 foreign airlines operate from Dhaka airport, with carriers including Emirates, Qatar Airways, Singapore Airlines, Thai Airways, Saudia, Malaysia Airlines and Ethiopian Airlines among those handling significant cargo volumes.

If cargo volumes rise significantly, airlines also operate dedicated cargo flights. Around 400-450 tonnes of export cargo are currently handled daily, according to the International Air Express Association of Bangladesh.

Daily import cargo generally stands at around 400 tonnes, although the volume can fall to around 300 tonnes on some days, according to Dhaka Customs House.

Tk200cr annual impact

The financial impact becomes significant when the exchange-rate difference is applied across the country's export cargo volume.

Around 2,00,148 tonnes of RMG export cargo was handled last year, with a total freight value of over $1 billion, according to industry insiders.

At a Tk2-per-dollar exchange-rate difference, the estimated additional cost would amount to roughly Tk200 crore a year.

Freight forwarders say the pressure is particularly severe because the sector operates on thin margins.

"For example, if a freight forwarder handles $1,00,000 worth of air cargo, the business is so competitive that there is little room for a large profit. Even if the profit margin is 5%, the profit would be only $5,000," Nasir said.

Freight forwarder Nasir Ahmed said a bank recently offered the dollar at around Tk121.75, while Biman was applying a rate of around Tk123.65 for air cargo, creating a gap of nearly Tk1.90 per dollar.

"If the exchange-rate difference alone causes a loss of around $2,000, a large portion of the profit is wiped out. After TDS and other airport and handling charges, the actual margin becomes even smaller," he added.

Industry insiders say freight forwarders cannot simply pass the additional cost on to exporters because of intense competition in the market.

Local forwarders fear losing ground

There are around 1,400 freight-forwarding companies in Bangladesh, although only about half regularly handle shipments, according to industry insiders.

Nasir said local freight-forwarding and logistics companies have been gradually building their capacity and infrastructure, but continued losses caused by exchange-rate differences could weaken their competitiveness.

He warned that continued pressure on local freight forwarders could eventually shrink their market share and create greater opportunities for foreign companies to dominate the sector.

BAFFA seeks market-based rate

In a letter to Biman on 2 July, Baffa urged Biman to revise its dollar exchange rate based on prevailing market rates.

Responding to the allegations, Biman spokesperson Mohiuddin Ahmed said the airline does not arbitrarily determine its exchange rate.

"Biman does not set any rate randomly. A rate determined by the government is forwarded to Biman. I have asked our finance department about the matter, and they have been discussing the issue for some time," he said.

Bangla QR-based person-to-person transactions will be introduced from November, allowing customers to transfer funds interoperably by scanning another customer's Bangla QR code or uploading an image of the code through the relevant mobile app, according to Bangladesh Bank Executive Director and Spokesperson Arief Hossain Khan.

Addressing a press briefing at the central bank headquarters in Dhaka's Motijheel today (30 September), he said, "Bangla QR is a government initiative. Some think their business will decline with the expansion of Bangla QR. In reality, they are living in a fool's paradise. Those who do not remain with Bangla QR will not have an existence."

He added that mobile financial service (MFS) providers fear their business will decline because of banks' QR codes, but "both MFS providers and banks have their own limits".

Currently, he said, customers of banks and MFS providers can use mobile apps to scan Bangla QR codes and pay for purchases at nearly 3.9 million merchants nationwide.

According to Bangladesh Bank (BB) data, an average of around 1,00,000 Bangla QR payments were made daily in June, with the average transaction value exceeding Tk28 crore.

The number has now risen to around 3,50,000 payments a day, with an average transaction value of approximately Tk143.54 crore.

This shows that within just 90 days from 1 July, the average number of Bangla QR transactions increased about three-and-a-half times, while their total value rose nearly fivefold.

To expand the use of Bangla QR, Bangladesh Bank replaced all proprietary QR codes with Bangla QR from 1 July as part of regulatory simplification measures. It has also taken several steps concerning the functionality, promotion, and pricing of Bangla QR.

A working committee comprising representatives of banks and MFS providers, along with a steering committee headed by the Bangladesh Bank governor and comprising representatives of various ministries and divisions, are working on the system.

The committees are identifying necessary policy and strategic measures for the Bangla QR system and determining the required actions.

Merchants to receive payments instantly

From 1 October, payments made through all Bangla QR codes will be deposited instantly into the respective merchants' accounts.

As a result, merchants will no longer have to wait to receive payment after customers pay for goods or services.

Bangladesh Bank expects the move to encourage greater adoption of Bangla QR among merchants.

Transaction costs to fall

From tomorrow (1 October), the minimum 1% merchant discount rate imposed by acquiring institutions on Bangla QR payments will be scrapped.

At the same time, the interchange reimbursement fee for issuing institutions will be set at zero.

As a result, the cost of Bangla QR payments at the merchant level is expected to fall significantly. Banks and MFS providers will be able to offer Bangla QR payment services to merchants either free of charge or at a low cost.

Incentives for transactions up to Tk2,000

A new incentive scheme will also be introduced from tomorrow to encourage the use of Bangla QR.

Bangladesh Bank will provide incentives for each Bangla QR transaction processed through the National Payment Switch Bangladesh platform at all merchant points, for transactions of up to Tk2,000.

Under the scheme, acquiring institutions will receive an incentive equivalent to 0.10% of the transaction value, while issuing institutions will receive 0.20%.

Education, healthcare, transport sectors in focus

Bangladesh Bank is also placing special emphasis on expanding Bangla QR use in the education, healthcare, and transport sectors, said spokesperson Arief.

Giving an example from the healthcare sector, he said patients often struggle to get change when buying outpatient department tickets. For instance, someone paying Tk10 with a Tk50 note may not receive change, increasing queue times.

With Bangla QR, patients would be able to scan a code with their mobile phones and make the payment directly, he said.

There are also plans to introduce Bangla QR payments in the education sector, including for school fees and small purchases such as food at school canteens, stationery, pencils, erasers, sharpeners, and geometry boxes, said the BB official.

The education ministry has already issued instructions regarding making payments of private school fees cashless, he said, adding that initiatives are being taken to facilitate such payments through Bangla QR.

Bangla QR could also be used in the transport sector, Arief said.

Referring to long queues at toll plazas on roads, including the Padma Bridge, he said QR-based toll payments could help reduce waiting times.

Such a system would eliminate the need for cash and make toll collection faster, he added.

Looming cost shocks and emerging fiscal burdens threaten to reverse Bangladesh's recent gains in inflation control, prompting the central bank to keep its policy rate unchanged at 9.5% despite headline inflation cooling to a 10-month low of 8.26% in August 2026.

According to Bangladesh Bank's maiden Quarterly Monetary Policy Statement (QMPS) for October-December 2026, announced today (30 September), the primary catalysts behind persistent price risks are the recent upward adjustment in administered fuel prices and the partial implementation of the new national pay scale.
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"The recent increase in administered fuel prices is likely to raise transport and production costs, while partial implementation of the national pay scale could add further inflationary and fiscal pressures," the central bank noted in its policy statement.

A Tk20 per litre price hike across all fuel oils earlier this month is already rippling through the real economy, driving up freight and energy expenses for manufacturers, agricultural producers, and logistics networks.

While food inflation moderated to 7.02% in August, non-food inflation remained elevated at 9.32%, underscoring deep-seated price pressures likely to intensify as higher transportation tariffs take full effect.

The Standing Lending Facility rate has also been retained at 11% and the Standing Deposit Facility rate at 7.5%, Deputy Governor Habibur Rahman said while announcing the quarterly monetary policy at the central bank headquarters today (30 September).

The decision was taken at the 14th meeting of the Monetary Policy Committee on 23 September.

Deputy Governor Habibur Rahman speaks while announcing the quarterly monetary policy at Bangladesh Bank headquarters on Wednesday (30 September 2026). Photo: TBS
Deputy Governor Habibur Rahman speaks while announcing the quarterly monetary policy at Bangladesh Bank headquarters on Wednesday (30 September 2026). Photo: TBS

The central bank said global fuel price increases, disruptions in the Strait of Hormuz, upward adjustments in controlled domestic fuel prices, and the likely implementation of a new pay scale could add to inflationary pressure.

It warned that easing monetary policy prematurely could raise inflation expectations and delay the return of inflation to the target range.

Growth remains under pressure

The monetary policy statement said economic activity remains subdued, with real GDP growth estimated at 4.14% in FY2025-26. Growth in the third quarter of the fiscal year was estimated at 2.2%, while industrial production contracted 0.28% during the period.

High financing costs, energy shortages, infrastructure constraints, and uncertainty over domestic and external demand continue to weigh on economic activity, it said.

The new monetary framework acknowledges that a Tk 60,000 crore stimulus package - which includes Tk 20,000 crore dedicated to reopening closed factories - is expected to support economic recovery.

However, the central bank cautioned that "monetary policy alone cannot address the supply-side constraints weighing on growth", signalling that rate cuts alone will not resolve structural bottlenecks.

Private-sector credit growth remains weak

Private-sector credit growth stood at just 4.75% in August 2026, reflecting weak investment and lending demand, borrower risks, and weaknesses in the banking sector.

Despite a 50-basis-point policy rate reduction in early August, credit transmission to the real economy "remains weak".

While financial conditions have eased within interbank markets and government securities, that liquidity has failed to reach businesses.

The share of non-performing loans (NPLs) in the banking sector also rose to 32.78% in June 2026.

The central bank explicitly linked this high NPL ratio to weak credit flow and elevated borrower risk, stressing the urgent need for "bank restructuring, stronger governance, capital restoration, and improved credit discipline."

Remittances provide external-sector support

The balance of payments recorded a surplus of $6.6 billion in FY26. However, the overall balance turned negative in the first two months of FY2026-27, mainly due to a deficit in the financial account.

Remittance inflows rose 18.90% during the period, providing some support to the external sector. The relatively stable exchange rate also helped contain imported inflation.

Bangladesh Bank expects a gradual rather than rapid economic recovery in the coming fiscal year. The World Bank projects 4.6% growth for FY2026-27, while the International Monetary Fund has lowered its forecast to 3.5% from 4.3%.

The central bank expects inflation to gradually ease next fiscal year, although the pace of the decline remains uncertain.

Seven listed banks have been excluded from the CSE50 benchmark index of the Chittagong Stock Exchange (CSE) following its regular biannual review and rebalancing.

The changes will take effect on 11 October 2026, according to a press release issued by the port city bourse.

The CSE dropped Al-Arafah Islami Bank, IFIC Bank, Islami Bank, Mercantile Bank, ONE Bank, The Premier Bank and United Commercial Bank from the CSE50 index following a comprehensive review of the performance of listed companies.
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To replace the outgoing entities, seven new companies across diverse sectors were inducted into the index. The newly included scrips are BSRM Steels, Berger Paints, Dhaka Bank, Fine Foods, Heidelberg Materials, Taufika Foods and Lovello, and The Ibn Sina Pharmaceuticals.

Reviewed twice a year based on six-month performance data ending in June and December, the CSE50 index is designed to serve as an official benchmark for the country's capital market. It measures the performance of 50 leading and liquid stocks across various sectors, excluding corporate bonds, mutual funds, and 'Z' category companies.

Following the latest revision, the constituent companies of the CSE50 represent 76.40% of the total market capitalization and 72.57% of the free-float market capitalisation of all stocks listed on the Chittagong bourse as of 30 June 2026. Furthermore, these 50 scrips accounted for 53.72% of the average daily turnover recorded on the exchange over the six months ending 30 June 2026.

The remaining 50 companies comprising the revised index include heavyweights such as Square Pharmaceuticals, Grameenphone, British American Tobacco Bangladesh, Robi Axiata, Marico Bangladesh, LafargeHolcim Bangladesh, BSRM Ltd, Olympic Industries, and Walton Hi-Tech Industries, alongside surviving banking institutions like BRAC Bank, City Bank, Dutch-Bangla Bank, Eastern Bank, Prime Bank, and Pubali Bank.

Oil prices rose on Wednesday after US President Donald Trump denied he would be willing to ease sanctions on Iran while Qatar pushed for peace talks, after falling in the previous session on a recovery in crude supply from the Middle East.

The Brent futures November contract, which is expiring on Wednesday, rose 71 cents, or 0.69 percent, to $103.30 a barrel by 0408 GMT.

The more active December contract rose 35 cents to $96.51.

US West Texas Intermediate crude gained 43 cents, or 0.48 percent, to $89.81.

Brent is headed for a monthly gain of around 14 percent, its biggest climb since July, while WTI is on track for a 4 percent rise after having breached $106 for the first time since May.

The spread between the two benchmarks this month also expanded to its widest in four months as traders watched potential plans by the US to restrict diesel exports, which could create an oversupply in the domestic market and lead US refiners to process less crude.

US President Donald Trump is considering allowing sales of red-dyed diesel, instead of an export ban, to offer some price relief to consumers as the November midterm elections loom.

"Continued uncertainty over sanctions relief and negotiations is keeping a geopolitical risk premium embedded in prices," said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.

"Improving supplies could cap further gains, but renewed disruption or an escalation in tensions could trigger another rally," she added.

Qatar said on Tuesday it hopes that shuttle diplomacy between Iran and the US can lead to a breakthrough.

However, Trump denied an Axios report that cited US officials as saying he was willing to give Iran sanctions relief and release frozen Iranian funds in return for "concrete" steps by Tehran on its nuclear programme.

On Tuesday Saudi Arabia resumed oil tanker loadings from its Red Sea port of Yanbu after restarting operations on the East-West Pipeline.

Crude oil exports from Middle East producers have rebounded in September to 16.328 million barrels per day, the highest since the US-Israeli war with Iran started in late February.

"With flows through the Saudi East-West pipeline restored, regional exports are now just 11 percent below pre-war levels — a remarkable recovery for a region still at war," J.P. Morgan research said in a note.

Over the past five days, the 10-day average for total oil exports has held at 20.5 million barrels per day, or 89 percent of 2025 levels, J.P. Morgan estimated.

In the US, crude oil and gasoline inventories rose, while distillate stocks fell last week, market sources said on Tuesday, citing data from the American Petroleum Institute.

Official inventory data from the US Energy Information Administration is due at 10:30 a.m. EDT (1430 GMT).

Analysts polled by Reuters expect crude and product inventories to have fallen.

The Federal Trade Commission is conducting an industry-wide probe into Anthropic, OpenAI and other AI labs to uncover the potential dangers their technology poses to consumers, a senior FTC official told Reuters on Wednesday.

The probe is the first official US enforcement action that delves into rogue AI agents, following a surge in incidents first reported in July that have stoked fears among the public that uncontrolled AI could one day harm humans.

The FTC plans to issue formal demands for information and compel testimony from executives at top AI developers, including Anthropic, OpenAI and the research group METR, the official said.
Anthropic, OpenAI and METR have used METR to conduct independent investigations into security incidents involving their agentic AI technology.

Anthropic, OpenAI and METR did not immediately respond to requests for comment from Reuters. The New York Post first reported the news.

FTC Chairman Andrew Ferguson had concerns about the companies before AI agents developed by OpenAI hacked the open-source platform Hugging Face, the official said.

But the incident in which OpenAI agents had probed the AI coding hub for vulnerabilities before carrying out a large-scale attack increased urgency around the issue, the official said.

Ferguson suggested last week in an interview with Reuters that developers who instruct agents in cybersecurity tests that result in hacks should be liable for any harm they cause. The US should look to existing laws before seeking to pass new ones regulating AI, Ferguson said at the Reuters Momentum AI event in Austin.

The FTC has broad authority to sue companies over unfair or deceptive practices, and has used that authority in the past to take action against companies for failing to take reasonable measures to secure consumers' data.

US President Donald Trump met with top AI executives on Tuesday, where the companies agreed to establish voluntary standards. Trump has repeatedly called fears about AI a hoax as he seeks to prioritise US dominance in the technology over regulation.

At the same time, he has also said the government can use existing laws against AI companies for any harm they may cause.

Anthropic said agentic AI technology raises significant and unpredictable legal risks in the prospectus for its stock market debut, Reuters exclusively reported on Tuesday.

The government has kept the retail prices of diesel, octane, petrol and kerosene unchanged for October 2026.

According to a notification issued by the Bangladesh Energy Regulatory Commission (BERC) today (30 September), the existing prices will remain effective throughout October.

Under the latest rates, diesel will sell at Tk135 per litre, octane at Tk165, petrol at Tk160 and kerosene at Tk155 per litre.
The prices were fixed by the Energy and Mineral Resources Division through a notification issued on 20 September, and the same rates have now been retained for October with the approval of the competent authorities.

Inflation-upturn fear keeps the central bank tightfisted on money supply as the key policy rate of interest is kept pegged at 9.5 per cent for emerging external and internal risk factors.

The Middle East crisis, higher energy prices and fiscal pressure practically pose uncertainty about continuation of downward inflationary rate.

In its latest policy update, the Bangladesh Bank (BB) has kept the policy rate unchanged at 9.5 per cent for the October-December quarter, citing persistent inflation risks, elevated global energy prices and uncertainty stemming from the disruption in the Strait of Hormuz.

The central bank said the moderation in headline inflation does not yet provide evidence of durable disinflation. Elevated global energy prices and navigation disruption in the Strait of Hormuz could create supply and cost pressures, with potential pass-through to consumer prices.

The recent upward adjustment of administered fuel prices and the implementation of the national pay scale could further increase production costs and demand pressure, the BB has said to justify its cautious stance.

It also warns that premature monetary easing could weaken inflation expectations and delay the return of inflation to the desired path.

"Considering these risk factors, members of the monetary policy committee (MPC) has decided to keep the tight monetary stance unchanged," BB Deputy Governor Dr Md. Habibur Rahman, who leads the monetary-policy department, said while announcing its maiden quarterly MPS (monetary policy statement) on Wednesday.

The BB traditionally announces the MPS with the BB governor in the chair, but the present governor, Md. Mostaqur Rahman, did not attend the MPS-unveiling event on ground of "other engagement".

However, the deputy governor informed that the governor assured him of his availability in the next MPS programme scheduled for December.

As per the latest MPC decision, the interest-rate corridor will remain same with Standing Lending Facility (SLF), the upper ceiling of the corridor, at 11.0 per cent, while the floor rate of the corridor called Standing Deposit Facility (SDF) will stay at 7.50 per cent.

Amid weak credit demand, he said, private-sector credit growth stood at only 4.75 per cent in August 2026, while broad money growth reached 12.40 per cent.

The non-performing-loan ratio remained high at 32.78 per cent. Monetary easing was passing through to market rates, but transmission to credit and the real economy remained weak.

Dr. Rahman has noted that liquidity was ample but unevenly distributed among banks, while credit demand remained subdued.

The central bank also stressed that lower interest rates alone cannot resolve insolvency, weak governance and inadequate provisioning in the banking sector.

Looking ahead, he said, Bangladesh Bank identified prolonged geopolitical conflict, higher energy and fertiliser prices, tighter global monetary conditions, domestic energy and infrastructure constraints, fiscal pressures, the national pay scale and weaknesses in the banking sector as key risks.

About the possible effective regulatory steps to lessen NPL (non-performing loan) buildup by way of stimulating private-sector credit appetite, he informed that the regulator is working on making an 18-month plan which would help significantly reduce NPL pressures while spurring private-sector-credit demand.

"Detailed specifics of the plan will be shared with you soon," he added.

Regarding the rationale for 50-basis-point cut in the policy rate in July last, he said the central bank considers both inflation and real-sector activity when setting monetary policy.

At the time of the 50-basis-point rate cut, economic indicators such as industrial production, private-sector credit, employment and investment suggested that high borrowing costs were weighing on economic activity, while inflation was considered largely supply-driven.

The rate cut was, therefore, intended to provide some relief to businesses and balance inflationary pressures with real-sector activity. Following the cut, call money, Treasury bill and bond rates declined, reducing borrowing costs to some extent and easing supply-side cost pressures, the BB deputy governor explains.

Deputy Governors Md. Sarwar Hossain and Md. Anis Ur Rahman along with executive directors Dr Imam Abu Sayed and Arief Hossain Khan, were among others present at the MPS launch.

Factory activity in China crept back to growth in September, official data showed Wednesday, providing a positive sign for the country’s leaders after two months of contraction.

The data came after Beijing announced a stimulus package to offset economic strains and low spending in the world’s second-largest economy.

The manufacturing purchasing managers’ index (PMI), a closely watched gauge of industrial health, came in at 50.1 this month, just above the 50 mark separating expansion from contraction.

The data from the National Bureau of Statistics was in line with the forecast in a Bloomberg survey of economists -- and an improvement of the 49.8 and 49.2 recorded in July and August respectively.

NBS statistician Huo Lihui said in a statement it showed “that there has been recovery in economic (conditions)”.

Huo noted that “three key industries show rapid expansion”, including equipment manufacturing, high-tech manufacturing and the consumer goods industries.

“Production and operations in the relevant industries remained robust overall,” he added.

The non-manufacturing PMI, which measures activity in other areas including services and construction, came in at 50.2, the data showed.

That outstripped a Bloomberg forecast of 49.2 and was up from last month’s 49.0.

“The construction industry’s business activity index rose to its highest level this year,” Huo added.

Leaders in Beijing are seeking to maintain economic pace despite hurdles including trade frictions with Washington and an entrenched property-sector crisis that has spooked consumers.

Beijing on Monday announced “a package of pragmatic and effective incremental policy measures” to support the economy.

The government will introduce measures aimed at stabilising the property market and promoting employment and income growth, state news agency Xinhua said.

On Tuesday, the People’s Bank of China followed suit, announcing measures to reduce credit costs in sectors including infrastructure and technology, and to offer more subsidies to home buyers.

The central bank will also broaden loans to support investment in water, power-grid, computing, communications, urban pipeline and logistics networks, it said.

Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, warned that while the stimulus policies are “another step in the right direction”, they might not be adequate to stabilise the economy alone.

“The fiscal subsidies are confined to apartment transactions less than 1.5 million yuan ($224,000) in value. Most apartments (in key cities)... don’t qualify as they are more expensive,” he said.

Nevertheless, he added, “policy makers are taking a new approach”, and the move marks “one step forward to address the problem properly”.

China’s economy has been supported by a historic boom in exports that has shown no sign of stopping in recent months.

It has also been helped by the global artificial-intelligence frenzy that has increased demand for its tech products.