The Bangladesh Bank (BB) has kept its main interest rate unchanged at 9.5 percent for the October-December quarter, saying inflation risks ahead are still large and the economy is weak.

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

In its monetary policy statement yesterday, the central bank said it would wait and watch before cutting rates again. The BB lowered the policy rate by half a percentage point to 9.5 percent on August 2.

The Standing Lending Facility (SLF) rate stays at 11 percent, while the Standing Deposit Facility (SDF) rate stands at 7.5 percent, as per the monetary policy statement.

This was the BB’s first quarterly policy statement. Previously, the central bank announced its monetary policy statement for six months at a time.

While announcing the statement at a press conference at BB headquarters, Deputy Governor Md Habibur Rahman said inflation slowed to 8.26 percent in August, the lowest in 10 months, from 9.16 percent in June.

Food prices drove the decline, with food inflation at 7.02 percent. Prices of other goods and services remained elevated at 9.32 percent.

Habibur said the recent moderation in headline inflation does not yet provide sufficient evidence of durable disinflation.

The central bank listed several threats, including higher global energy prices, the prolonged conflict in the Middle East, shipping trouble in the Strait of Hormuz, the latest fuel price hike in the third week of September and the new pay scale for public employees.

“The monetary policy committee decided to observe the impact of these developments for another one or two months before taking a fresh decision on the policy rate,” said the deputy governor.

He said the BB considers its monetary policy stance somewhat tight because the rate is high compared with those in other countries and with inflation.

GROWTH

The Bangladesh Bureau of Statistics (BBS) put growth for the fiscal year 2025-26 at 4.14 percent. However, the central bank said the figure may hide underlying weakness.

Growth in the third quarter of FY26 was only 2.2 percent, while factory output fell 0.28 percent. Recent data point to a small pickup in the July-September quarter, according to the monetary policy statement.

To stimulate economic activity, the BB announced a Tk 60,000 crore loan package, comprising a Tk 41,000 crore refinancing fund and Tk 19,000 crore from its own funds.

Of the total, Tk 20,000 crore is earmarked for reopening closed factories. The rest will go to farming, small businesses and export growth. The central bank expects the plan to create about 25 lakh jobs, restore export momentum and boost farm output.

Private-sector credit grew by just 4.75 percent in August, well below the central bank’s 6.8 percent target through December.

This means banks have plenty of cash, but demand for loans is weak. Interbank rates and yields on government bonds have fallen, yet the lower rates have not reached borrowers.

18-MONTH PLAN FOR BAD LOANS

In June, bad loans accounted for 32.78 percent of all loans in the country’s banking sector.

At the press conference, Habibur admitted that the central bank’s earlier steps to deal with bad loans were slow.

He said the BB and the government are now preparing an 18-month plan to tackle the problem and roll out the stimulus package.

“It will be shared with stakeholders soon,” he said, adding that it should bring a clear improvement.

EXTERNAL SECTOR & OUTLOOK

Habibur said the external sector had provided some relief. The country ran a surplus of $6.6 billion in FY26, helped by strong remittance inflows from Bangladeshis living abroad.

He said this helped keep the taka steady and lift foreign exchange reserves. The BB bought more than $6 billion from the local market over the past year.

The picture changed in the first two months of the new fiscal year, when the balance moved into deficit. Remittances still rose 18.9 percent during the period.

The deputy governor said the central bank expected a gradual rather than rapid recovery.

The World Bank forecasts growth of 4.6 percent for FY27. The International Monetary Fund (IMF) cut its forecast to 3.5 percent from 4.3 percent.

The BB said it would maintain a data-driven approach, with an emphasis on targeted credit support, structural reforms, financial-sector strengthening and orderly exchange-rate flexibility.

Stakeholders have called for a phased and practical rollout of the proposed Bangladesh Securities and Exchange Commission (BSEC) Corporate Governance Rules 2026, saying stricter requirements could be difficult for companies to implement without adequate preparation and institutional capacity.

The call came at a roundtable titled “Strengthening Corporate Governance in Bangladesh”, organised by SMAC Advisory Services Ltd in Dhaka on Tuesday evening.

Hossain Sadat, a BSEC commissioner, attended the event as the guest of honour, alongside regulators, company representatives, professional bodies, academics and journalists.

Participants reviewed the draft Corporate Governance Framework 2026, stressing that it should go beyond formal compliance to ensure effective oversight by boards and their committees.

Zareen Mahmud Hosein, chairman of SMAC Advisory Services, compared the proposed rules with governance practices in other regional markets.

Participants reviewed the draft Corporate Governance Framework 2026, stressing that it should go beyond formal compliance to ensure effective oversight by boards and their committees

The draft introduces reporting requirements covering environmental compliance, corporate social responsibility (CSR) policies, and CSR budgets and spending.

Zareen recommended adopting a common international framework for sustainability reporting to avoid overlapping requirements. She also questioned whether companies, consultants and auditors were adequately prepared for the new rules and who would verify or certify environmental, social and governance (ESG) disclosures.

“Phased implementation is necessary,” she said, calling for clearer definitions and valuation requirements for related-party transactions, proportionate risk oversight and a roadmap for sustainability disclosures aligned with international standards.

Independent directors emerged as a major implementation concern. Under the draft, the maximum number of listed companies on whose boards an independent director can serve would be reduced from five to three.

The minimum general experience requirement would rise from 10 to 12 years, while independent directors would have to make up at least one-third of a board or three directors, whichever is higher.

The draft would also extend the cooling-off period for former executives from two to three years and introduce mandatory training for independent directors.

However, Zareen cautioned that increasing the number of independent directors would not automatically ensure genuine independence. She called for transparent nomination processes, disclosure of those proposing candidates and clear evidence that nominees meet independence criteria.

Snehasish Barua, managing director of SMAC Advisory Services Ltd, also emphasised the role of independent directors.

“Ensuring the independence, accountability and transparency of independent directors is one of the primary foundations of institutional good governance, stakeholder trust and long-term value creation,” he said.

Prof Melita Mehjabeen of the Institute of Business Administration stressed that boards should balance their oversight responsibilities with each organisation’s structure and circumstances.

M Nurul Alam, president of the Institute of Internal Auditors Bangladesh, highlighted the importance of directors’ professional knowledge and understanding of operational needs, alongside transparency and accountability.

In his closing remarks, BSEC Commissioner Hossain Sadat said the commission would consider stakeholder feedback and the long-term implications of policy decisions in developing a framework that protects investors and supports investment.

He underscored the importance of transparency and safeguarding investor rights, even amid resource constraints, adding that the commission aimed to formulate an investment-friendly corporate governance framework within this year, taking into account the interests of domestic and foreign investors.

The BSEC first issued corporate governance guidelines in 2006 and revised them as the Corporate Governance Code on June 3, 2018.

The code requires listed companies to comply with provisions on board composition, the appointment of independent directors, directors’ reports to shareholders, audit and remuneration committees, and corporate websites.

Earlier this year, the commission published the draft Bangladesh Securities and Exchange Commission (Corporate Governance) Rules 2026 for stakeholder feedback.

Bangladesh’s capital market is at a point where meaningful reform is no longer an option; it is a necessity. Over the years, we have seen a gradual erosion of public interest and confidence. Restoring that confidence will require credible institutions, quality companies, long-term investors and a market structure that creates value. Against this backdrop, I believe the Bangladesh Securities and Exchange Commission’s initiative to introduce a more effective framework for direct listing is timely.

For decades, Bangladesh’s corporate sector has relied heavily on bank financing. Banks will continue to play a central role, but this dependence has also put pressure on the banking sector. An economy of our size and ambition cannot sustainably depend on bank loans for corporate financing. We need both a strong banking system and a deeper capital market. A well-functioning capital market can provide long-term equity financing, reduce debt dependence, ease pressure on banks and create a healthier financial system.

A well-designed direct listing framework can bring established companies to the capital market, broaden investment opportunities, improve liquidity and help rebuild investor confidence.

Bangladesh has no shortage of successful and reputable businesses. Many have strong fundamentals, sound governance and decades of operating history. Yet they may not have an immediate need for fresh capital. Under the traditional IPO model, this can make entering the capital market less compelling. Companies that do need additional capital have also faced lengthy approval processes, valuation restrictions, limited flexibility in structuring an IPO and other regulatory requirements. As a result, many good companies have remained outside the market. This is where direct listing can create a new pathway.

A direct listing framework can reduce the time and complexity involved in bringing established companies to the market. It can provide a mechanism for sponsors and directors to realise fair value for part of their holdings, unlocking wealth they have created through decades of work. It can also create new investment opportunities for the public and liquidity for existing shareholders.

Listing can offer established companies a transparent market-based valuation, stronger visibility, improved governance and greater institutional discipline. For eligible companies, the 7.5 percent tax differential can also strengthen the commercial rationale for listing.

Importantly, direct listing does not have to be linked to an immediate funding requirement. A company may list without needing fresh capital while retaining the ability to raise equity in the future through rights issues or further public offerings when capital is required. The objective should not simply be to increase the number of listed companies. It should be to bring the right companies into the market: businesses with strong fundamentals, credible management, sound governance and a proven track record. If some of Bangladesh’s most respected companies enter through a direct listing mechanism, it could improve market depth, broaden investment opportunities, enhance liquidity and help rebuild investor confidence.

At IDLC Investments, we have spent many years developing Bangladesh’s capital market through complex transactions and innovative initiatives. This has allowed us to engage with leading business groups. Many successful businesses are not opposed to listing; rather, they need a framework that is practical, predictable and commercially viable. The discussion on the draft Bangladesh Securities and Exchange Commission (Direct Listing of Securities on the Stock Exchange) Rules, 2026, held by the Commission with market participants, including IDLC Investments and leading business groups, is a welcome development. The consultation can bring practical market experience into the regulatory framework.

Ultimately, the capital market should be viewed not merely as a platform for trading shares, but as a strategic pillar of Bangladesh’s economic architecture, connecting long-term capital with productive businesses, supporting entrepreneurship, strengthening governance and reducing dependence on debt.

The writer is the managing director of IDLC Investments Limited

Advanced Chemical Industries (ACI) has approved an additional equity investment of Tk 600 million in ACI CO-RO Bangladesh, its existing joint venture with Danish beverage maker CO-RO, to expand its presence in the beverage market.

The ACI board also approved the formation of a new joint venture with Japan-based Ichinen Holdings Co Ltd, marking the company's planned expansion into motorcycle financing, skilled manpower placement and the export of agricultural products to Japan.

The decisions, taken at a board meeting on Monday, were disclosed through separate regulatory filings on Tuesday.

ACI CO-RO was established in 2019 as a greenfield joint venture to manufacture fruit-based beverages in Bangladesh under CO-RO's brands and in conformity with CO-RO's quality standards.

The joint venture inaugurated its first state-of-the-art fruit drink factory in Narayanganj in February 2024 with a $20 million investment. The additional investment is aimed at supporting the venture's expansion as consumer demand for convenient and quality drinks evolves, according to the company.

CO-RO, founded in Denmark in 1942 by brothers Flemming and Jep Petersen, operates across the Middle East, Asia, Europe and Africa. Its brands, including Sunquick, Suntop, Sun Lolly and Suncola, are sold in more than 80 countries, according to the company.

A new venture to branch into new markets

ACI is also set to form a new joint-venture company with Japan-based Ichinen Holdings, named ACI-ICHINEN Bangladesh Ltd, to branch into motorcycle financing, skilled manpower placement and agricultural exports to Japan.

The partnership brings together ACI's established presence in Bangladesh with the diversified business expertise of Ichinen Holdings, a Japanese corporate group headquartered in Osaka.

The proposed company will have an authorised capital of Tk 500 million and paid-up capital of Tk 150 million. ACI will hold a 60 per cent stake in the joint venture, subject to approval from the relevant authorities.

The plan is to purchase Yamaha motorcycles from ACI Motors and sell them to retailers with financing in six to twenty-four monthly instalments. The initiative is expected to create a financing channel for retailers purchasing Yamaha motorcycles.

The joint venture will also facilitate the migration of skilled Bangladeshi workers to Japan, while another part of the business will focus on cultivating sweet potatoes in Bangladesh for export to the Japanese market.

Ichinen Holdings operates across several sectors, including automotive leasing, chemicals, parking, machine tools and synthetic resin products. Its automotive-related operations include vehicle leasing, rental services, disposal of leased vehicles and outsourced vehicle maintenance.

The Japanese group also manufactures and sells chemicals for automobiles, machinery and industrial applications, while its other businesses include parking operations and the sale of machine tools, automotive maintenance equipment, air-conditioning tools and measuring instruments.

Ichinen also has operations related to agricultural products, property leasing and management, and processed glass products.

The proposed joint venture comes as ACI continues to pursue business expansion through new investments and partnerships.

Financial performance

The fresh investment and new venture have been considered despite persistent pressure on ACI's consolidated financial performance for three consecutive years to FY25.

The listed conglomerate has reported consolidated losses for the financial years mainly because of higher borrowing costs and losses incurred by several subsidiaries. Between FY23 and FY25, ACI's cumulative losses amounted to Tk 2.54 billion.

In FY25, the group posted a consolidated loss of Tk 650 million. However, its standalone business remained profitable, with net profit rising 19 per cent year-on-year to Tk 3.99 billion, reflecting the strength of its core operations.

Despite the consolidated loss, ACI's board recommended a 25 per cent cash dividend for FY25, signalling confidence in the company's long-term fundamentals and cash-generating ability.

ACI's consolidated losses narrowed sharply to Tk 71.22 million in the nine months through March this year, from Tk 783 million in the corresponding period a year earlier, driven by higher sales.

India’s trade remedies authority has recommended definitive anti-dumping duties of up to $218 per tonne on imports of polyethylene terephthalate (PET) film, widely used in packaging, from Bangladesh for five years.

In the final findings of a year-long probe, dated September 29, the Directorate General of Trade Remedies (DGTR) proposed a duty of $218 per tonne on film exported by most Bangladeshi firms.

It set a lower rate of $58 per tonne for AKIJ Biax Films Ltd, a concern of AkijBashir Group, the only Bangladeshi company to cooperate with the probe.

The recommendation comes just days after India imposed anti-dumping duties of up to $445 per tonne on Bangladeshi jute products, including jute yarn and twine, following a mid-term review by DGTR.

India’s Directorate General of Trade Remedies proposed a duty of $218 per tonne on film exported by most Bangladeshi firms

Earlier this week, the DGTR separately recommended countervailing duties of up to $140.04 per tonne on jute products from Bangladesh.

The PET film – plastic sheets widely used in flexible packaging for food, pharmaceuticals, and consumer goods, as well as in electrical and industrial applications – recommendation also covers China and Thailand.

Chinese producers face $54 to $361 per tonne, depending on whether they cooperated, and Thai exporters $198 to $366, according to the DGTR report.

The DGTR concluded that dumped imports from the three countries undercut Indian producers’ prices and caused them material injury.

The duties take effect only if India’s finance ministry notifies them.

Bangladesh’s shipments of PET films rose from 12 tonnes in fiscal year 2021-22 to 2,763 tonnes in 2024-25, according to the findings, or about 3.4 percent of India’s PET film imports. China supplied 26,086 tonnes and Thailand 12,870.

The DGTR found that all of AKIJ’s relevant home-market sales were below cost, so it built a normal value from the company’s costs rather than its domestic prices. It, however, declined to adjust AKIJ’s export price for export incentives, saying the claim was not tied to the product shipped to India.

AKIJ officials did not respond to phone calls seeking comment.

The probe began on September 30, 2025, after an application from Indian manufacturers Chiripal Poly Films, Ester Industries and Vacmet India.

It initially covered Bangladesh, China, Thailand and the United States. The US was dropped at the preliminary stage after the domestic industry withdrew its complaint.

The investigation examined imports from April 2024 to March 2025, and the injury assessment ran from 2021-22 to the end of that period.

Anti-dumping duties are protective tariffs imposed on imported goods by a host nation when foreign items are exported at prices lower than their fair domestic market value or production cost, causing material injury to local industry.

With PET film facing these new tariffs, the number of Bangladeshi export products subject to such trade measures stands at five.

Historically, five countries – Argentina, Brazil, India, Pakistan, and Turkey – have slapped anti-dumping duties on Bangladeshi exports, including 100 per cent knitted textile gloves, jute bags and sacks, hydrogen peroxide, jute yarn/twine, and synthetic yarn.

Pakistan previously applied a 12.14 per cent anti-dumping duty on hydrogen peroxide from most Bangladeshi exporters before later discontinuing it.

Since 1992, Bangladeshi exporters have faced nearly a dozen anti-dumping investigations across these markets, according to a study by the Bangladesh Foreign Trade Institute.

A move by field offices of the National Board of Revenue (NBR) to collect tax on interest earned from microsavings has raised concerns among microfinance institutions (MFIs), which say the measure could discourage poor people from saving.

Several income tax field offices have recently asked a number of MFIs to deduct and deposit 10 percent tax on interest paid to micro savers. They have also suggested that the MFIs pay a 2 percent fine for failing to deduct the tax, citing the Income Tax Act 2023.

The issue affects a large number of low-income savers. As of June 2025, nearly 700 MFIs licensed by the Microcredit Regulatory Authority (MRA) were operating with about 4.40 crore members. Around 90 percent of their members were women, according to MRA data.

At the time, the MFIs had total outstanding loans of Tk 1,74,880 crore and savings of Tk 79,932 crore.

According to the Credit and Development Forum (CDF), an association and not-for-profit umbrella organisation of MFIs in Bangladesh, the institutions paid Tk 4,795 crore in interest to depositors.

A 10 percent tax deducted at source from that interest would generate about Tk 479.5 crore in tax revenue.

In a letter to the NBR, the CDF said the revenue from the tax would be relatively small compared with its possible impact. It warned that taxing microsavings could discourage rural people from saving, reduce the national savings rate and make it harder for MFIs to raise funds.

MFIs encourage ultra-poor and low-income people to save small amounts regularly so they have money available when they need it.

“People can start saving with as little as Tk 10,” said Murshed Alam Sarker, chairman of the CDF.

He said MFIs credit the full interest to savers because the institutions’ service-charge income is tax-exempt.

“Since the current fiscal year, some tax offices have asked us to deposit tax on the interest earned by savers. What is the rationale for collecting tax from poor people?” he said.

Last week, the CDF wrote to the NBR, urging it to keep interest earned from microsavings tax-exempt. It also sent letters to the finance minister and the MRA, Murshed said.

CDF SEEKS CLARIFICATION ON TAX LAW

The CDF said the service charges, or the interest MFIs earn from their microcredit operations, are legally tax-exempt. It cited a provision in the MRA Act 2006 and said collecting deposits is part of the institutions’ operations.

The law also protects savers’ right to earn interest on their deposits, the forum said. As the MFIs’ income is tax-exempt, they have treated the interest paid to micro savers as tax-free, it added.

However, the CDF said the Income Tax Act 2023 classifies interest income from deposits as subject to withholding tax and requires tax to be deducted when the interest is paid.

The Finance Act 2023 made tax deductions on interest payments mandatory but did not clarify whether the provision applies to savings held by microfinance members, the organisation said.

“Most members of microfinance institutions are low-income people whose earnings are well below the minimum taxable income threshold. As they are not liable to pay income tax, they have no legal way to adjust or claim a refund for tax deducted from their savings in advance,” the CDF said.

The forum also pointed out that small, regular savings help build rural capital and provide an informal safety net for families facing illness, natural disasters, crop failures or sudden loss of income.

A senior NBR official said the income tax law provides for tax deductions on interest paid on deposits. “It appears that our field offices have started collecting the tax under this provision,” he said.

The NBR has received the CDF’s letter, and senior officials are expected to discuss the issue soon, he added.

Prof Mohammed Helal Uddin, executive vice chairman of the MRA, said most MFI members are marginalised people who save very small amounts, often just Tk 20 to Tk 30.

“Collecting tax on their savings income would go against the government’s policy of supporting marginalised people and reducing inequality,” he said.

“We will raise the issue with senior government officials and seek to keep interest income from microsavings tax-free,” he added.

Global bonds wobbled on Wednesday and were set for their worst month in years, hit by a toxic mix of deteriorating government finances, a glut of issuances and rising inflation as the seven-month-old US-Israeli war on Iran keeps energy costs elevated.

Meanwhile, stocks fared better, largely unfazed by the surge in bond yields and were upbeat in Asia.

The rise in borrowing costs has been front-and-centre for investors, given that sovereign yields are an anchor for global markets, a reference price for investing in riskier stocks and a benchmark for mortgages and corporate borrowing.

Benchmark 10-year US Treasury yields held near their highest point since 2007 at 5.2383 per cent in Asia and were set for a rise of nearly 50 basis points this month, the largest in about two years. Bond yields move inversely to prices.

The 2-year yield fell slightly to 4.8889 per cent after New York Federal Reserve President John Williams pushed back against expectations for earlier policy tightening, though yields remain more than 50 bps higher for the month.

"This is becoming much bigger than another repricing of the next few central bank meetings," said Charu Chanana, chief investment strategist at Saxo.

"I do think we are moving towards a structurally higher-yield regime ... The hurdle for yields to return sustainably to the ultra-low levels investors became accustomed to after the (Global Financial Crisis) looks much higher."

Yields in Japan are hovering near multi-decade highs, while 10-year government bond yields in Germany and France hit 17-year and 18-year peaks this week.

Defying the Yield Surge

While a persistently higher risk-free rate increases the cost of refinancing for companies and weighs on growth, its impact on stocks has thus far been relatively limited.

MSCI's broadest index of Asia-Pacific shares excluding Japan .MISX00000PUS rose 0.2 per cent in early trading and was on track for a monthly fall of just over 1 per cent.

Japan's Nikkei rose 0.9 per cent and was set to end the month little changed, while South Korea's Kospi was headed for a monthly gain of 1.4 per cent.

Nasdaq futures edged 0.13 per cent higher and S&P 500 futures added 0.16 per cent. EUROSTOXX 50 futures and DAX futures advanced 0.5 per cent each, while FTSE futures tacked on 0.4 per cent.

Much of the resilience in equity markets can be attributed to upbeat corporate earnings, strength in the global economy and continued hype around artificial intelligence.

"What was surprising to us was the sanguine reaction of the equity market where the growth in nominal GDP was driving earnings optimism," said Citi's head of Asia-Pacific trading strategy Mohammed Apabhai in a note, referring to the recent rise in bond yields.

"US equity markets are reacting to the rise in bond yields but only outside of the tech space."

He added that, in meetings with macro funds and institutional investors in New York, many asked how high bond yields could go, at what level hyperscalers might scale back capital spending and when equity markets would react.

Dollar Gets a Lift

In currency markets, the dollar was on track for a monthly gain of 2 per cent, aided by the rise in US yields.

That left the euro trading near a 16-month low at $1.1336. It was headed for a monthly loss of 2.4 per cent as the currency struggles in the face of a global energy shock and growing political risk in Europe.

Sterling fell 0.03 per cent to $1.3227 and was set to lose 2.4 per cent for the month.

The yen, however, steadied at 157.03 per dollar and was eyeing a monthly gain of 1.7 per cent, with investors wary of pushing the currency lower due to the threat of a joint intervention by Tokyo and Washington.

In commodities, oil prices rose on Wednesday, with Brent crude futures up 0.56 per cent to $103.16 a barrel, while US crude edged 0.11 per cent higher to $89.49.

Both were set for monthly gains, on concerns about prolonged supply disruptions due to the ongoing Middle East war.

Spot gold was down 0.2 per cent at $4,171.93 an ounce.

Bangladesh faces 66 operational and policy gaps in ensuring supply- chain traceability in major export sectors, which poses compliance problems in major export destinations, sources say.

The lapse stokes concerns about the country's ability to comply with increasingly stringent international trace-and-track requirements in trade operations.

Traceability is the process of identifying and tracking a product or component's path from raw materials to finished goods that helps the destinations countries in policy decisions about the imports.

A comprehensive diagnostic presented by the Ministry of Commerce (MoC) at a recent closed-door workshop has revealed these gaps. The diagnostic was conducted by BUILD with the support of GIZ.

It identified gaps across key export sectors, including readymade garments (RMG), leather and footwear, agro-food and fisheries.

The diagnostic has found that the country's key weakness is not the complete absence of supply-chain data but the fragmentation of existing information across different systems, including customs, according to an MoC report.

The report warns that addressing the gaps quickly would be important for Bangladesh to maintain market access and meet emerging traceability and sustainability requirements in major export destinations.

The report, obtained by the FE, was presented at an internal workshop organised by the MoC's export wing on 'Strengthening Supply Chain Traceability for Responsible Business Conduct and Trade Competitiveness in Bangladesh' on Sunday at the Secretariat.

Of the 66 gaps identified, 39 have been classified as critical or structural based on the Criticality Preference Scoring (CPS) method.

Commerce Minister Abdul Muktadir was the chief guest at the event, while Commerce Secretary Ataur Rahman chaired the workshop.

High-ups from all relevant ministries, stakeholders, diplomats, development partners and exporters joined the meet.

Talking to the FE, the Commerce Minister said the government decided to introduce sector-based traceability for both export markets as well as the domestic market.

"Concerns over food adulteration and fair prices for farmers would be resolved if we could ensure traceability of products," he added.

Chief Executive Officer of BUILD Ferdous Ara says domestic traceability is important, but priority should be given to export traceability in the first phase.

"We have to introduce Digital Product Passports (DPPs) involving relevant ministries to address the different types of requirements from buyers," she said.

She has suggested establishing a national traceability platform and expediting the traceability strategy by giving it the utmost priority.

The diagnostic identified 18 critical gaps requiring action within 18 months, 13 structural gaps to be addressed within 18 to 36 months, and eight strategic gaps requiring attention over 36 to 60 months.

The largest number of gaps, 14, was identified in technical and data-related areas, five of which were classified as critical.

Another 14 gaps were found in policy and regulatory areas, including four critical gaps, while institutional and governance issues accounted for 12 gaps, three of them critical.

Sectoral structure accounted for nine gaps, industry capacity eight, and financial issues seven. Enforcement and data governance had one gap each.

Data are not sufficiently connected, standardised, interoperable, verified or reusable across supply chains, it said.

"The lack of an integrated system is also creating difficulties in meeting requirements in major export markets," the report says.

There is currently no real-time data link connecting exporter-origin information with customs authorities at both ends of international supply chains, according to the diagnostic.

Concerns have also emerged over the traceability of cotton and other raw materials.

In particular, blended-origin cotton poses challenges for Bangladeshi exporters seeking to comply with the US Uyghur Forced Labor Prevention Act (UFLPA), as origin information is not adequately documented at the mill level.

The country's limited domestic forensic-testing capacity is another challenge.

Exporters often have to rely on foreign verification services, increasing costs and potentially delaying shipment.

It says digital-traceability initiatives remain largely confined to individual factories or pilot projects instead of operating through a common sector-wide system.

The report has placed textiles and RMG, leather and footwear, agro-food and fisheries, and shrimp in the very-high-priority category because of regulatory requirements and enforcement deadlines in major export destinations.

The European Union's digital catch certification system, CATCH, has been in use for seafood imports since January 10, 2026.

The EU's Digital Product Passport requirements are also approaching, with mandatory application for RMG and apparel expected from the third or fourth quarter of 2027.

The EU Deforestation Regulation requires plot-level geolocation information for medium and large enterprises from December 30, 2026, while deforestation-free supply chains are expected to become increasingly important towards 2030.

The EU Forced Labour Regulation is scheduled to begin import-ban enforcement on December 14, 2027.

In the leather sector, slaughterhouse-level traceability under the Leather Working Group requirements is expected to be phased in during 2028-2030.

Against this backdrop, the Ministry of Commerce has established a Policy Coordination Unit for Circularity and Traceability and an Interministerial Coordination Committee.

The government is also working on a National Traceability Strategy, an ESG Framework and responsible business conduct guidelines.

Several private-sector initiatives are already underway.

Digital Product Passport pilots have been launched at companies that include Urmi Group, Epyllion and Fatullah Apparels, while the Leathertrace pilot covers 16 tanneries and a shrimp-tracking initiative covers around 400 farmers.

ABM Faqrul Alam, head of Sustainability at Urmi Group, who attended the workshop, has stressed the need for interministerial coordination and said the Ministry of Energy should be included in the process.

He said Urmi Group had already made significant progress in traceability and recommended scaling up industry best practices.

"Traceability is urgent for the sake of business, as the EU is the major export destination for Bangladesh," he added.

Mr Alam said Urmi Group formally started its traceability initiative in 2024 using data dating back to 2015-16.

The company has introduced the first Digital Product Passport (DPP) in Bangladesh and uses more than 20 portals for traceability.

"Emission reduction must also be ensured through traceability," he said.

The diagnostic recommends establishing an interoperable National Traceability Platform rather than creating another standalone database.

Such a platform would provide common data standards, unique identifiers and real-time integration with customs systems across export sectors.

It also recommends establishing a National Traceability Steering Committee to coordinate the system and ensure interoperability among government agencies, exporters and other supply-chain stakeholders.

BKMEA Joint Secretary Farzana Sharmin says awareness and preparing a policy framework are important now.

"Interministerial coordination is needed to avoid repetition or overlapping decisions," she adds.

The quality and reliability of economic data have universally been regarded as fundamental to sound policy planning. Yet the importance of statistics goes beyond the accuracy of individual figures. What a country chooses to measure, and what it leaves outside the frame of measurement, can profoundly influence how it understands its own economic condition. A high rate of growth may look reassuring on paper, but it may conceal the depletion of forests, fisheries, minerals and other natural assets on which future prosperity depends.

Against this backdrop, Bangladesh's move towards a broader system of measuring economic growth and national wealth deserves attention. The Bangladesh Bureau of Statistics (BBS) is planning to measure net domestic product (NDP) in line with recommendations of the United Nations, according to BBS officials. The initiative is intended to give policymakers a more comprehensive picture of economic performance and wealth creation while strengthening confidence in official statistics.

The proposed measure is expected to be derived from revised national accounts, with 2025-26 designated as the new base year. According to people familiar with the developments, the BBS may publish the first estimates under the revised framework in April-May 2028. If implemented properly, the initiative could represent an important step in the evolution of Bangladesh's statistical system.

The significance of the move lies partly in what conventional GDP does not tell us. Gross domestic product measures the value of final goods and services produced within a country during a given period. It is indispensable for understanding economic activity, but it does not, in itself, provide a complete account of the condition of the assets that make that activity possible.

NDP goes somewhat further by deducting the consumption or depreciation of fixed capital from GDP. In conventional accounting, this means recognising the wearing out or loss of productive assets such as machinery, buildings and vehicles. But the proposed approach seeks to take another important step: recognising the economic cost of the depletion of natural assets.

Bangladesh intends to incorporate the United Nations' System of Environmental-Economic Accounting (SEEA) into its national accounts. The framework seeks to bring environmental and economic information together, making it possible to examine the relationship between economic activity and changes in the country's natural-asset base. As a senior BBS official has noted, the international statistical system is increasingly placing emphasis on measures of national wealth and looking "beyond GDP." That shift is more than a technical adjustment. It reflects a changing understanding of what constitutes economic progress.

An economy can expand rapidly while simultaneously consuming the resources that sustain its future. The extraction of minerals, the clearing of forests, the depletion of fisheries or the degradation of land can contribute to production and income today. But if the natural assets are not replenished or managed sustainably, the apparent gain may carry a hidden cost. In such circumstances, the economy may be growing in terms of current output while quietly diminishing the foundation of tomorrow's output.

This is particularly relevant for Bangladesh, where natural resources and environmental systems are closely intertwined with livelihoods and economic activity. Rivers, wetlands, fisheries, agricultural land and coastal ecosystems are not merely environmental features; they are productive assets. Their degradation can eventually translate into lower agricultural productivity, declining fisheries, greater disaster vulnerability, higher public expenditure and lost livelihoods. Yet many of these costs remain largely invisible in conventional measures of GDP.

A broader measure of NDP could, therefore, help answer a more meaningful question: how much wealth is the economy actually creating after accounting not only for the deterioration of its man-made productive assets but also for the depletion of its natural capital?

The task will not be easy. Measuring the depletion of natural resources requires reliable information and credible methods of valuation. Putting economic value on forestry, fishery, mineral deposits or an ecosystem is considerably more complicated than recording the market value of a manufactured product. The BBS will need new data sets, methodological capacity and close coordination with government agencies responsible for the environment and natural resources.

The BBS also plans to calculate net national disposable income (NNDI) as part of the wider revision of the national-accounting framework. These changes are part of a broader effort to update Bangladesh's national accounts and bring them more closely in line with evolving international statistical standards.

There is, however, a larger lesson in this exercise. Statistics are not simply numbers collected after economic events have occurred. They shape the way policymakers see the economy and, consequently, the priorities they set. If the statistical framework records only what is produced and consumed, policymakers may naturally give greater weight to immediate output and income. If it also records what is being depleted or lost in the process, the costs of unsustainable growth become harder to ignore.

For Bangladesh, therefore, moving beyond GDP should not be seen merely as an exercise in adopting a sophisticated international accounting framework. It is an opportunity to develop a more authentic narrative of economic progress-one that distinguishes between wealth creation and the liquidation of assets. Ultimately, the value of better statistics lies not in producing more impressive numbers but in producing numbers that tell more of the truth.

ACI PLC will invest an additional Tk60 crore in ACI CO-RO Bangladesh Ltd, its existing joint venture with Denmark-based CO-RO A/S, to expand the business and increase production and exports.

The investment was approved at the company's 232nd board meeting held yesterday (29 September) through a hybrid system.

The investment is subject to approval from the relevant regulatory authorities, according to a disclosure by ACI on the Dhaka Stock Exchange (DSE). ACI's share price closed at Tk182 on the DSE today (29 September).

ACI and CO-RO A/S established ACI CO-RO Bangladesh in 2019 as a greenfield joint venture. ACI had previously invested around Tk50 crore in the venture and held a 49.9% stake, according to company information.

If the previous investment remains unchanged, the latest Tk60 crore investment would take ACI's cumulative investment in the venture to around Tk110 crore.

Mohammad Mostafizur Rahman, company secretary of ACI, told The Business Standard that the additional investment was approved mainly to expand the company's business.

"The board has approved the additional investment for business expansion," he said.

He said CO-RO A/S is not making any fresh investment in the venture at this stage.

He declined to disclose ACI's current ownership percentage in the joint venture or whether the latest investment would change its stake.

The company has also started exporting its products on a small scale, and exports are expected to increase following the planned business expansion, he said.

The stock exchange disclosure, however, did not specify how the Tk60 crore would be used. It remains unclear whether the additional funds will be used entirely for factory expansion, production-capacity enhancement or other business requirements.

ACI CO-RO Bangladesh manufactures and markets CO-RO's Sunquick fruit drink brand in Bangladesh. The company's factory in Narayanganj was inaugurated in February 2024.

The venture was established with a combined investment of more than $20 million by ACI and CO-RO, according to earlier company information. The figure represents the joint investment in the project and should not be considered CO-RO's individual investment.

New Japanese joint venture

At the same board meeting, ACI also approved the formation of another joint venture, ACI-ICHINEN Bangladesh Ltd., with Japan-based ICHINEN Holdings Co Ltd.

The proposed company will have an authorised capital of Tk50 crore and paid-up capital of Tk15 crore. ACI will hold a 60% stake in the new venture, subject to approval from the relevant authority.

The company plans to operate in areas including human resource development and manpower supply, motorcycle retail financing and agriculture.

The new venture will add another business line to ACI's diversified portfolio as the group continues to expand beyond its traditional consumer and pharmaceutical businesses.

Financial position

ACI's financial performance has also been a key consideration for investors as the company continues to make new investments.

According to the company's financial disclosures, its revenue increased 16% to Tk3,995 crore during the nine months ended March 2026, while net profit rose 13% to Tk368 crore. Earnings per share stood at Tk41.91 and net asset value per share was Tk379.57 during the period.

For investors, the key issues surrounding the latest investment will be how quickly the additional capital translates into higher production, sales and exports, as well as whether the expansion improves the profitability of ACI CO-RO Bangladesh.

The absence of details on the utilisation of the Tk60 crore and the resulting ownership structure means investors will likely need further information from the company on the project's capacity expansion, funding structure and expected returns.

Private sector credit growth has remained below 5% for six consecutive months, with growth standing at 4.75% at the end of August, according to Bangladesh Bank data.

Credit growth stood at 4.72% in March, 4.75% in April, 4.98% in May, 4.47% in June and 4.62% in July.

Bankers and economists attributed the slowdown to weak business and investment demand, sluggish domestic consumption and economic activity, and an energy crisis that has increased operating costs.

They also said high interest rates, driven by persistent inflation, have made borrowing more expensive.

Sohail RK Hussain, managing director of Bank Asia, said private sector credit growth was unlikely to see significant improvement over the next six months to a year.

"Demand has fallen significantly. Due to low demand, capacity utilisation of factories has also declined. Since there is still ample unused capacity in the market across various sectors, large investments to create new capacity are not needed right now unless demand increases significantly. It may take another year for this type of investment to pick up," he said.

He said large corporate entities already had high levels of bank loans or leverage, while domestic consumption and overall economic activity had remained sluggish for four to five years. As a result, large-scale new private investment projects were still limited.

He added that most current capital investment was focused on repair, maintenance and retaining existing capacity rather than creating new capacity.

Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue, said high inflation was keeping the policy rate elevated, making it difficult to rapidly increase credit growth.

"Inflation must be brought down; otherwise, reducing the policy rate will not be possible, as expansionary monetary policy cannot be pursued," she said, adding that adequate supply of goods was also needed to control inflation.

She said businesses were still lacking confidence to start new ventures despite the arrival of an elected government.

Long-standing infrastructure problems had also worsened, while higher energy prices and inadequate supply had increased business costs.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said major industrial groups were struggling and had reduced production, lowering their need for bank loans.

He also said irregularities during the previous government had left only slightly more than 15 banks in good condition, reducing the overall lending capacity of the banking sector.

How can bank credit growth increase?

Bankers said sick and closed industries need to be revived by expanding business and investment, reducing interest costs and attracting new investors.

Mahbubur said inflation must be brought down to encourage new investment.

Sohail said loans to businesses that remain classified as performing but whose factories are closed or struggling should be supported through new investors and various packages.

He said effective use of the Tk20,000 crore package for sick industries could reduce interest and operating costs for highly leveraged businesses and help them restart.

However, he said implementing the package would take time as companies must be assessed, their needs identified, and borrowers must also take steps to revive their businesses.

Stocks at the Dhaka Stock Exchange (DSE) fell for the fourth consecutive session today (29 September) as investors remained cautious ahead of earnings declarations by June-closing companies.

Over the four sessions since 24 September, the DSEX, the DSE's benchmark index, has shed 71 points, according to bourse data.

Today, the DSEX slipped 1.5 points to settle at 5,524 as selling pressure weighed on most traded stocks.

The DSE Shariah Index fell 2 points, while the DS30, the blue-chip index, declined 3 points.

Market turnover dropped 15% as investor participation weakened, DSE data showed.

Of the 395 issues traded, 142 advanced, 178 declined and 75 remained unchanged.

EBL Securities, in its daily market commentary, said the benchmark index slipped into negative territory in the final hour as investor caution over potentially weaker earnings from June-closing companies weighed on sentiment.

The market opened higher and remained in positive territory for most of the session before coming under late-hour selling pressure, despite a brief bout of buying interest, it said.

Textiles accounted for the largest share of turnover at 28.8%, followed by general insurance at 18.2% and pharmaceuticals at 10.6%.

Sectoral performance was mixed, with textiles, travel and cement posting the strongest gains, while paper, IT and mutual funds recorded the steepest declines.

The Chittagong Stock Exchange (CSE) also closed lower, with its CSCX and CASPI indices falling 3.9 points and 5 points, respectively.

The Asian Development Bank (ADB) and Modern Syntex Limited (MSL) have signed a $50 million loan agreement to expand energy-efficient polyester chips production in Bangladesh.

The agreement was signed today (29 September) for the Modern Energy-Efficient Polyester Chips Manufacturing Project, according to an ADB press release.

The financing will support MSL's expansion of its production capacity from 107 tonnes to 407 tonnes per day. It will also refinance the company's short-term local working capital loans.

The expanded facility will produce high-intrinsic-viscosity polyester chips, which are used in higher-value textile and apparel products.

"Bangladesh's textile and ready-made garment industry is a key driver of the economy, but it continues to rely heavily on imported synthetic inputs," said ADB Country Director for Bangladesh Qingfeng Zhang.

He said the financing would help MSL increase domestic production, strengthen local supply chains and support higher-value textile manufacturing.

The project will introduce energy-efficient machinery, which is expected to save around 4,840 megawatt-hours of electricity and reduce about 2,222 tonnes of carbon dioxide equivalent emissions annually.

MSL will also pursue Leadership in Energy and Environmental Design (LEED) Platinum certification for its building and factory under the project.

The expansion is expected to increase the domestic supply of polyester chips, reduce import dependence, shorten lead times and improve efficiency for textile manufacturers.

The project will also create around 100 new jobs and promote greater participation of women through inclusive recruitment practices.

"We greatly value ADB's support as it enables MSL to significantly expand polyester chips production, strengthen local supply chains, and reduce dependence on imported inputs," said MSL Managing Director Abu Sufian Chowdhury.

He said the company's investment in energy-efficient technology would improve its competitiveness while supporting the textile industry.

MSL, a company of TK Group, operates Bangladesh's first continuous polymerisation facility in the Mirsarai Economic Zone in Chattogram.

The company manufactures polyester chips, synthetic yarn and fibre, mainly for domestic textile manufacturers. Its facility is located close to major port and logistics infrastructure.

Bangladesh, Chile, Sri Lanka and Hong Kong have applied to join the Regional Comprehensive Economic Partnership (RCEP), a 15-country trade bloc in the Asia-Pacific region. At a meeting of the RCEP Joint Committee in Manila on 21 September, a recommendation was made to form special working groups on the applicant countries.

The recommendation was later approved at the fifth RCEP Ministerial Meeting held in Manila, the capital of the Philippines. This is an important development for Bangladesh. However, there is no scope to view this as being on the threshold of membership; rather, a difficult phase of preparation and negotiation is now beginning.

If Bangladesh can join RCEP, it could create opportunities to access new markets, enter regional supply chains and diversify exports. In the context of losing some of the existing trade benefits after graduation from LDC status, establishing institutional trade relations with major Asian markets will become increasingly important for Bangladesh.

But it would be a major mistake if we only look at the size of the market and not the level of competition. RCEP will open markets for Bangladesh; at the same time, Bangladesh will also have to open its market to member countries. Competitive products from China, Japan, South Korea and ASEAN could then enter Bangladesh's market more easily. For domestic industries with weak productivity and high costs, that will be a difficult test.

Bangladesh's real problem, therefore, is not obtaining permission to enter RCEP; the problem is building the capacity to compete after entering. Exports remain excessively dependent on ready-made garments. An ineffective trade policy, inefficiencies at ports and customs, logistics costs, energy uncertainty, a complex tax system, limited use of technology and a skills shortage are all obstacles to competitiveness.

Reforming trade policy must therefore be given priority in the list of reforms. Alongside high tariffs, para-tariffs, such as supplementary duties, regulatory duties and other import-related charges, need to be reduced to establish a transparent, simple and predictable tariff structure. At the same time, customs and port systems must be modernised, supply chain costs must be reduced and reliable energy must be ensured. Alongside increased investment in skills, technology and research, export capacity needs to be developed in sectors such as pharmaceuticals, leather, agro-processed products, light engineering and ICT beyond garments.

RCEP is not just a trade agreement for goods; its broader objective is regional integration in services and investment. Therefore, the opportunities for Bangladesh are not limited to exporting goods.

To attract investment from RCEP countries, Bangladesh's investment environment also needs to be made competitive. Without reforms in areas such as land, reliable electricity and gas supplies, predictability in the tax system, transparency in the repatriation of profits and capital, contract enforcement and coordination among regulatory agencies, it will be difficult to realise the aspiration of becoming a regional hub for production and investment.

Most importantly, negotiations must be based on data, not emotion. Without preparation on which products need rapid tariff benefits, which sectors require longer transition periods and how domestic industries can be given temporary protection, trade agreements could instead create pressure.

RCEP is therefore not just a door to new markets for Bangladesh; it is a test of capacity. The door is opening, but the biggest question now is whether the house has been prepared well enough to compete and attract investment on the other side.

Dr Selim Raihan is a professor of Economics at Dhaka University and executive director of the South Asian Network on Economic Modelling (Sanem).

Bangladesh has invited global oil and gas companies to invest in 26 offshore blocks, highlighting competitive terms under its Offshore Model Production Sharing Contract (PSC) 2026 and the Bay of Bengal's largely unexplored hydrocarbon potential at the World Energies Summit in London.

The investment pitch was made at a ministerial session on the Strategic Stage of the summit today (29 September), where Bangladesh invited international energy companies to participate in the Bangladesh Offshore Bidding Round 2026.

Under the bidding round, 26 offshore blocks -- 11 in shallow water and 15 in deep water -- have been opened to international investors.

State Minister for Power, Energy and Mineral Resources Anindya Islam Amit highlighted Bangladesh's growing energy demand, driven by rapid economic expansion.

He said the government was working to increase exploration and production of domestic gas and other energy resources.

The minister also urged international oil and gas companies to participate in the ongoing offshore bidding round.

At the summit, Invest Bangladesh Chairman Chowdhury Ashik Mahmud Bin Harun presented an overview of the country's economic situation, highlighting macroeconomic stability, investment flows and government measures aimed at facilitating international investment.

The Bangladesh delegation also presented the Bay of Bengal's unexplored offshore potential, the availability of modern seismic data and the commercial terms offered under the Offshore Model PSC 2026.

The government has been seeking international investment in offshore exploration to boost exploration and production of domestic gas and other energy resources.

At the session, the Bangladesh delegation encouraged international energy companies to review the country's geological and seismic data before deciding on their participation in the bidding round.

The delegation also requested interested companies to engage directly with the government and Petrobangla for further information and to participate in the bidding process.

The Bangladesh Securities and Exchange Commission has approved bond proposals worth a combined Tk3,500 crore from five banks to strengthen their Tier-II capital under Basel III and finance green and sustainable projects.

The approvals were given at the commission's meeting on Tuesday (29 September) for One Bank, Southeast Bank, BRAC Bank, Al-Arafah Islami Bank and Bank Asia.

One Bank will raise Tk400 crore through an unsecured, non-convertible, fully redeemable, floating-rate subordinated bond. The bond will carry a coupon of the reference rate plus 3% and will be privately placed with institutional investors and high-net-worth individuals.

Southeast Bank will raise Tk800 crore through a seven-year subordinated bond, also offering a coupon of the reference rate plus 3%. The proceeds will be used to strengthen its Tier-II capital.

BRAC Bank will raise the largest amount, Tk1,000 crore, through a three-year zero-coupon green bond. The potential discount rate is 8.5%, with each unit having a face value of Tk10 lakh.

The proceeds will be used to provide low-cost green financing to eligible customers. The bond will be privately placed with corporate institutions, provident and gratuity funds, high-net-worth individuals and other eligible investors.

Al-Arafah Islami Bank will raise Tk500 crore through a seven-year floating-rate subordinated bond carrying a coupon of the reference rate plus 3%. The proceeds will strengthen its Tier-II capital under Basel III.

Bank Asia will raise Tk800 crore through a seven-year sustainable subordinated bond, also carrying a coupon of the reference rate plus 3%. The proceeds will be used to strengthen Tier-II capital and finance or refinance eligible green and sustainable projects.

The bonds will be issued through private placement, meaning retail investors will not have direct access to the issuances.

One Bank and Southeast Bank bonds will be listed on the Main Board. Bank Asia's bond will also be listed on the Main Board.

Green Delta Capital will act as trustee and UCB Investment as issue manager for One Bank's bond. DBH Finance will serve as trustee for Southeast Bank, Al-Arafah Islami Bank and Bank Asia, while UCB Investment will manage the first two and Prime Bank Investment will manage Bank Asia's issue.

Prime Bank Investment will also act as trustee for BRAC Bank's green bond, with IDLC Investments as issue manager.

The approvals come as banks seek to strengthen their capital positions under Basel III. Subordinated bonds allow banks to raise long-term Tier-II capital without issuing new equity, while green and sustainable bonds channel funds into eligible environmental and socially beneficial projects.

For the first time, Bangladesh Bank (BB) is set to announce its monetary policy on a quarterly basis today, replacing the existing six-month cycle.

The central bank has decided to move to quarterly statements to make monetary policy more responsive to volatile domestic and global economic conditions.
The Monetary Policy Statement (MPS) for October-December 2026 will be announced at a 3:00pm press conference at BB headquarters, with Deputy Governor Md Habibur Rahman as the chief guest, according to a press invitation issued by the central bank.

The central bank has decided to move to quarterly statements to make monetary policy more responsive to volatile domestic and global economic conditions

The MPS was initially an annual exercise before being shifted to a half-yearly schedule. The International Monetary Fund (IMF) had recommended a quarterly framework more than a year ago.

On July 26 this year, NCP MP Hasnat Abdullah proposed announcing the MPS every three months instead of following the existing six-month cycle at the first meeting of the parliamentary standing committee on the Ministry of Finance.

Later that month, a BB policy panel also recommended shifting to quarterly monetary policy statements to improve the responsiveness, transparency and effectiveness of monetary policy in a rapidly changing environment.

The central bank had kept its policy rate at 10 percent since October 2024. However, in July this year, BB cut its policy, or repo, rate to 9.5 percent from 10 percent, marking its first reduction in six years.

Although price pressures are easing, inflation remains high. Inflation fell for the third consecutive month to 8.26 percent in August, its lowest level in 10 months, after peaking at 9.42 percent in May.

The July MPS projected inflation to ease to 8.9 percent by December 2026 and 8.6 percent by June 2027, both above the government’s FY27 ceiling of 7.5 percent.

The Bangladesh Bureau of Statistics (BBS) is set to introduce an annual advance calendar showing when it will publish major statistics, making government data more predictable and accessible to users.

The calendar will cover censuses, surveys, administrative data, key indicators, metadata and public-use microdata, according to BBS documents.

“If the scheduled release date is changed due to unavoidable circumstances, the revised schedule, along with the reason for the change, shall be published as soon as possible,” the draft says.

The BBS will publish the calendar under its Data and Microdata Dissemination and Access Policy, 2026, which aims to overhaul how the agency publishes and shares official statistics and microdata.

The BBS will publish the calendar under its Data and Microdata Dissemination and Access Policy, 2026, which aims to overhaul how the agency publishes and shares official statistics and microdata.
The BBS is now seeking feedback from stakeholders after posting the draft policy on its website.

The initiative addresses a long-standing concern among data users, particularly researchers and policymakers, who need not only reliable information but also clarity about when it will be available.

The draft policy treats official statistics as a public resource. It says data should be open unless access is restricted by law, privacy concerns or national interest.

MICRODATA ACCESS TO BE EXPANDED

The policy also proposes a Microdata Portal with dataset lists, dashboards, search and download options, APIs and citation guidelines. Along with reports, the portal would provide anonymised microdata, questionnaires, codebooks and methodology notes.

The draft divides microdata into three categories based on access requirements and privacy risks: Public Use Files, Licensed Use Files and Secure Research Files.

Public Use Files would be fully anonymised and openly available. More sensitive datasets would require approval and could only be accessed under specific conditions or in a secure research environment.

For example, the BBS could first publish a statistical report, followed shortly by its public-use microdata and supporting documents.

Before releasing the data, the BBS would edit, validate and check its quality, anonymise it and assess the risk of identifying individuals. It would also provide metadata and codebooks to help users work with the datasets.

Researchers seeking Licensed Use Files or Secure Research Files would have to provide information about themselves, their research purpose and how they plan to use the data. They would also have to agree not to identify individuals or share restricted data with third parties.

A Microdata Review Committee would assess the applications. Applicants whose requests are rejected could appeal to the BBS director general within 30 days.

Md Firoz Sarker, secretary of the Statistics and Informatics Division (SID), said the calendar would specify in advance which surveys would be conducted and when.

“When you do something repeatedly or suddenly, a lot of time and money are wasted. We want to avoid that,” he said.

He said SID is collecting feedback from stakeholders before sending the draft policy to the minister for approval.

Broader access to the microdata analysis lab will follow the completion of a data warehouse, which is expected by 2027, he said.

“Once the data warehouse is created, you will be able to come from outside and work here through the website,” he said.

Public-use microdata will remain free to download and use for publishing, while the policy allows fees for customised tables and special analysis, Firoz said.

Towfiqul Islam Khan, additional research director of the Centre for Policy Dialogue (CPD), said the policy could improve the accessibility, timeliness and accountability of government data.

He said recognising data as a public good was a significant part of the draft policy.

“The policy has recognised data as a public good. I think there will be more facilities in terms of access to both data and microdata,” he said.

He added that an advance release calendar would make data publication more regular.

“When there is a calendar, data is published regularly. When there is a calendar, accountability also becomes easier,” he said.

“We hope this will increase the credibility of BBS and also increase its engagement with other stakeholders,” he added.

Towfiqul also suggested that other government agencies that produce major datasets, including those responsible for public finance data, should adopt similar release policies.

“BBS, being the custodian and leader of data, should lead this process going forward,” he said.

“The more transparent it becomes, the more helpful it will be for whichever government is in charge,” he added.

Days after imposing fresh anti-dumping duties on jute goods, India has recommended anti-subsidy duties of up to $140.04 per tonne on jute products imported from Bangladesh.

India’s Directorate General of Trade Remedies (DGTR) recommended the duty after investigating imports from Bangladesh and Nepal.

The new tariff, known as a countervailing duty, is intended to offset subsidies provided by exporting countries. The DGTR launched the investigation last year following petitions from the Indian Jute Mills Association (IJMA) and the A.P. Mesta Twine Mills Association (AJMA), which represent Indian millers.

It examined market and import data for the 12 months from April 2024 to March 2025.

The investigation covered jute yarn and twine, sacking bags and cloth, hessian fabrics and bags, and diversified jute products containing at least 50 percent jute.

In its final findings, published on September 28, the DGTR recommended a duty of $101.54 per tonne on Bangladeshi jute products exported by Sagar Jute Spinning Mills Ltd and Oriental Jute Mills Ltd.

A total of 24 Bangladeshi millers co-operated with the investigation and were assigned specific duty rates. Six sampled millers were placed in three exporter groups with specific rates, while 18 non-sampled co-operating millers face a uniform duty of $116.48 per tonne.

A total of 24 Bangladeshi millers co-operated with the investigation and were assigned specific duty rates. The six sampled millers were placed in three exporter groups, with rates ranging from $101.54 to $132.36 per tonne, while 18 non-sampled co-operating millers face a uniform rate of $116.48 per tonne.

All other Bangladeshi jute goods exporters face a residual countervailing duty of $140.04 per tonne. Nepalese exporters face anti-subsidy duties ranging from $54.77 to $60.54 per tonne, according to the final findings.

The latest measure comes as Bangladesh’s jute goods shipments to India have already declined.

Bangladesh’s jute goods exports to India fell 18 percent year-on-year to 1.17 lakh tonnes in fiscal year 2024-25, according to the DGTR.

On September 24, India’s finance ministry imposed anti-dumping duties of up to $445 per tonne on jute products from Bangladesh, including jute yarn and twine, following a mid-term review completed in June.

Before the latest anti-dumping order, India had imposed duties ranging from $19 to $352 per tonne on jute yarn and twine, hessian fabric and jute sacking bags from Bangladesh and Nepal.

Those duties were later expanded to cover jute sacking cloth from Bangladesh, contributing to a slump in shipments to one of the country’s largest export markets for jute goods.

Bangladesh earned $1.16 billion from jute and jute goods exports in FY21, according to the Export Promotion Bureau (EPB). Shipments fell to $820 million in FY25 before exports recovered by 8 percent year-on-year to $884 million in FY26.

Mostafa Abid Khan, chief executive officer of the Bangladesh Foreign Trade Institute (BFTI), a think tank under the commerce ministry, said the latest measures by Indian authorities would further affect jute goods exports to the neighbouring country.

However, he said subsidies are never given to any specific producer. “As far as I know, they are given by a country to a sector. So, countervailing duties imposed on a specific industry should not be considered valid.

“Besides, it is our understanding that while imposing anti-dumping duty on jute products, subsidies provided to the sector were not adjusted. Therefore, it is obvious that anti-dumping duties contain subsidy effects as well. Therefore, as per Article VI of GATT-1994, countervailing duty cannot be imposed on jute products when such anti-dumping duties are in force. It is a real concern for Bangladesh,” he added.

Tapash Pramanik, chairman of the Bangladesh Jute Spinners Association (BJSA), questioned how countervailing duties could be imposed when an anti-dumping duty is already in place.

He said the incentive structure enjoyed by the jute industry a decade ago, or before that, no longer exists. But Indian authorities are not taking Bangladesh’s concerns into account.

“We would urge the government to challenge the move by India in the international arena,” he added.

The Bangladesh Securities and Exchange Commission (BSEC) has approved the reconstitution of Beximco Pharmaceuticals' board, excluding the company's vice-chairman Salman F Rahman.

The new nine-member board will comprise three representatives of the Beximco Group, one director nominated by IFIC Bank PLC, four independent directors, including one woman, and the company's managing director.

The decision was taken at a BSEC commission meeting today (29 September).

Under the arrangement, Beximco Pharmaceuticals will withdraw a pending lawsuit challenging the regulator's earlier decision to appoint independent directors. The BSEC will then withdraw two of its previous orders related to the dispute, according to the regulator.

The Beximco Group representatives on the new board are ASF Rahman, chairman and founder of the group, Osman Kaiser Chowdhury and Iqbal Ahmed. Osman Kaiser is currently a director of Beximco Pharma, while Iqbal Ahmed is its managing director, according to the company's website.

Salman F Rahman, a co-founder and vice-chairman of Beximco Group, has been in custody since his arrest following the political changeover in August 2024. He previously served as private industry and investment adviser to former prime minister Sheikh Hasina.

Following the change of government, the BSEC appointed independent directors to Beximco's three listed companies – Beximco Ltd, Beximco Pharmaceuticals and Shinepukur Ceramics – in early 2025. The companies subsequently challenged the appointments in court.

In September, Salman agreed to step down from the boards of the group's listed companies, paving the way for their restructuring and helping resolve a prolonged regulatory and legal deadlock. The three companies separately informed the BSEC of his decision.

Beximco Pharmaceuticals had proposed a new board without Salman as part of efforts to resume normal board operations. The company, which is also listed on the Alternative Investment Market (AIM) of the London Stock Exchange, said appointments would remain subject to applicable AIM rules and due diligence requirements.

Beximco's massive debt burden

The board restructuring comes as the conglomerate faces severe financial and operational difficulties.

According to a Bangladesh Bank report submitted to the High Court, Beximco Group had outstanding loans and liabilities of Tk50,098 crore as of 30 November 2024. Of this, Tk25,524 crore had been classified as defaulted.

Investigations by the Bangladesh Financial Intelligence Unit also found alleged irregularities in the group's borrowing, including loans obtained through entities described as non-existent or paper companies. Some funds were allegedly channelled into capital-market share manipulation.

Following the political changeover and Salman's arrest, the group's loans and assets came under scrutiny from the courts and Bangladesh Bank, with options including receivership and asset sales considered for loan recovery.

The financial difficulties have also disrupted operations. Beximco Ltd has remained out of production amid raw-material shortages and loan defaults, while Shinepukur Ceramics has been operating partially because of difficulties importing raw materials.

Beximco Pharmaceuticals, however, has continued its operations.