The global financial ecosystem has long embraced mutual funds as a means to cater diverse financial goals of individual investors.

Globally, mutual funds are a cornerstone of household financial assets. In the USA, more than half of households own mutual funds, offering a mix of equity, debt and hybrid funds that cater to varying financial goals. Mutual funds are also integral to individual savings and pension plans in other developed economies, while in India, small and regular investments through Systematic Investment Plans (SIP) have made mutual funds an immensely popular vehicle for retail investors.

Bangladesh's retail investors have traditionally relied on Sanchaypatra, bank deposits and direct equity investments. While these avenues may serve investors at certain stages of life, they cannot fully address the varied financial needs across different life cycles. Despite their early emergence in the 1980s, mutual funds remained largely institution-centric and did not reach out to individual investors with a sufficiently broad window of investment opportunities aligned with their evolving financial goals.

Retailizing mutual funds is not merely about growing industry assets; it is about institutionalizing household savings with professional management and building a more stable and deeper capital market. Recent reform initiatives, including the higher mutual-fund investment limit eligible for tax rebate up to BDT 75 lac and the flat 15% final tax on dividend income from both the listed shares and mutual funds, are constructive steps in this direction. We warmly appreciate the Government of Bangladesh, the Special Assistant to the Prime Minister for Investment and Capital Market Affairs, BSEC and NBR for these timely and pragmatic policy initiatives. The next phase should address the structural issues that still restrict the industry's scale; such as manual investment processes, limited retail distribution capacity, insufficient product categorization and the need for a deeper supply of quality securities.

The Evolution of Bangladesh's Mutual Fund Industry and the Shift toward Retailisation

The mutual fund industry in Bangladesh traces its roots back to 1980 with the launch of the First ICB Fund, a closed-end mutual fund introduced by the state-owned Investment Corporation of Bangladesh (ICB). Until the late 1990s, ICB remained the sole asset manager serving largely the institutional investors.

Over the last decade, the market has gradually become more retail-oriented with the entry of professionally managed, corporate-backed asset managers. This transition has been supported by product and service innovations aimed at making mutual funds more accessible and relevant to individual investors. A key development was the launch of online investment and servicing platforms, in 2017, which helped reduce some of the paperwork and operational frictions associated with mutual fund transactions and the introduction of SIP in 2018, which allowed retail investors to participate through small, regular contributions rather than large lump-sum investments.

The industry also began to diversify beyond traditional equity-focused products. The introduction of debt mutual funds in 2021, introduced under the Special Purpose Fund framework of the Mutual Fund Rules, expanded investment access to government securities and other fixed-income instruments.

These developments signal a shift toward retail participation, product diversification and financial inclusion. Yet mutual funds remain significantly underpenetrated, constrained by low awareness, operational frictions, limited retail access and the dearth of quality securities. Further regulatory reform, digitalization and stronger sales and distribution capabilities are prerequisite to channel retail savings into professionally managed, long-term investment products.

Priorities for building a Robust Mutual Fund Industry through Retailisation

Now the priorities for retailising the mutual fund are:

Transforming the digital landscape for investment in mutual fund: A fully digital and integrated distribution ecosystem is essential to expanding retail participation from current manual, wet-signature-driven CDBL ecosystem with no API connectivity. As demonstrated by India, seamless onboarding, transactions and servicing can significantly accelerate industry growth. The investor experience should be as simple and accessible as digital banking or a bKash DPS. Such enhancements would instantly place mutual funds digitally in front of millions of people.

Strengthening retail distribution & sales: Expanding Bangladesh's nascent mutual fund industry requires strong distribution networks and trained in-house sales teams to educate investors on the risks, benefits and suitability of different investment options. The regulatory framework should allow AMCs with sufficient flexibility within the maximum Total Expense Ratio (TER) to develop these capabilities, consistent with practices in mature markets.

Broadening mutual fund categories through clearly defined hybrid funds: Bangladesh's mutual fund industry remains largely equity-centric, limiting product choice and leaving many retail investors overly exposed to equity risk. The Mutual Fund Rules should enable standardized Hybrid fund categories, under both conventional and Shariah modalities, to serve different risk-return needs. Clear categorization would improve product comparability, help investors select funds aligned with their risk appetite and investment horizon, and support both investor protection and product innovation.

Market listings with the supply of quality equity and debt securities: Market depth is necessary for mutual funds to mobilize household savings efficiently. Therefore, mutual fund retailization and capital-market supply-side reforms should move together for ensuring a robust capital market.

The Path Forward- Building Institutional Strength Through Retail Savings

Bangladesh's stock market remains highly retail-centric, with around 85% of turnover generated by individual investors. The priority should be to channel more household savings through professionally managed funds, improving diversification and reducing speculative volatility.

India demonstrates the potential of this model, with a mutual fund industry of nearly USD 0.9 trillion supported by strong SIP inflows and deep domestic liquidity. Bangladesh remains far smaller, but the gap highlights substantial growth potential. With per capita bank deposits roughly half of India's, reaching even half of India's per capita mutual fund assets could imply a Bangladesh mutual fund industry of around USD 45-50 billion, compared with roughly USD 1 billion today.

With an enabling regulatory framework and sustained policy support, Bangladesh can develop a substantially larger mutual fund industry, converting household savings into long-term institutional capital and supporting a deeper, more stable capital market.

Bangladesh’s COP31 country position paper must reflect workers’ rights, social protection, safety, decent work, skills development and climate resilience as part of its just transition agenda.

Climate change is already affecting workers through heat stress, lost hours, unsafe workplaces and livelihood risks.

The recommendations and observations were made at an event titled ‘Workshop on Worker Position Paper for COP31’ held at a city hotel.

Manusher Jonno Foundation (MJF) and National Alliance for Just Transition Bangladesh (NAJTB) jointly organised the workshop, supported by Oxfam and Bangladesh Labour Foundation (BLF), joint Secretariat of NAJTB.

Organisers said this was part of a series of consultations and the next workshops will be held with youth and government stakeholders.

Later, the recommendations will be consolidated and aligned with the government’s COP31 position paper for final submission, they noted.

Speaking there, Elisa Benistant Fremigacci, Technical Officer, Just Transitions, ILO Bangladesh, said COP31 is being framed as the “COP of implementation” and workers in Bangladesh must push for policy commitments to turn into action.

She stressed dedicated financing, meaningful dialogue, direct representation and accountability for implementing the just transition chapter of the NDCs (Nationally Determined Contribution) .

Md Muhtasim Billah, senior program officer, Oxfam Bangladesh, said just transition cannot focus only on energy shift adding that it must safeguard workers’ rights, ensure social protection and secure decent work standards across sectors.

AKM Ashraf Uddin, executive director of BLF and member secretary of NAJTB, said direct participation of worker and employer representatives in COP negotiations is a major step forward.

He said NAJTB, bringing together nearly 60 civil society and trade union organisations across around 20 sectors, is preparing a unified Workers’ Charter of Demands for COP31.

Presenting the keynote, Mir Mohammad Ali, assistant professor at Sher-e-Bangla Agricultural University, said extreme heat waves and climate hazards are causing serious losses to workers and the economy.

He recommended embedding the Workers’ Charter in the government’s position paper, including paid heat-rest breaks, social security, skills development and worker representation in the official delegation.

Zubaer Alam, programme officer at BLF, said youth groups, trade unions and government committees will be engaged by mid-October to prepare a grounded Workers’ Position Paper.

Pablo Narudha, project coordinator of Fashion Forward at MJF, said MJF has worked with workers for more than two decades to protect their fundamental rights, and workers’ priorities must be reflected in national climate policy.

Wasiur Rahman Tonmoy, Lead, Youth and Social Cohesion at MJF, said workers’ voices must be reflected in clear, evidence-based and actionable language.

He expressed MJF’s commitment to continue to promote human rights through worker-led evidence, youth engagement and policy advocacy.

Syed Sultan Uddin Ahmed, Executive Coordinator of NAJTB and Executive Director of BILS, emphasised incorporating workers’ demands into the COP31 position paper.

Apex Footwear Ltd plans to raise up to Tk 500 crore through redeemable preference shares to refinance existing loans, as the footwear maker’s total borrowing-related liabilities reached Tk 1,855.6 crore at the end of March, according to its unaudited financial statements.

Redeemable preference shares are a type of company stock issued to raise funds, with the issuing company agreeing to buy them back from investors after a set period. Preference shareholders receive fixed dividends before ordinary shareholders receive any profits.

The proposed issue is subject to approval from the company’s shareholders and the Bangladesh Securities and Exchange Commission (BSEC), Apex said in a price-sensitive information disclosure on the Dhaka Stock Exchange (DSE) on Sunday.

A company official, speaking on condition of anonymity, said the board had given preliminary approval and discussions were still underway on the terms, structure and subscription process.

“The preference shares will be redeemable, and the proposal is being considered mainly to refinance the company’s outstanding loans,” the official said.

The company had Tk 1,479.4 crore in short-term borrowings, while long-term borrowings, including current maturities, stood at about Tk 376 crore.

The move comes as higher finance costs continue to put pressure on the company’s earnings. Apex Footwear paid Tk 78.7 crore in interest during the nine months to March, up from Tk 67.4 crore a year earlier.

The company’s revenue rose to Tk 1,559 crore during the nine months to March from Tk 1,369 crore a year earlier. However, net profit increased only modestly to Tk 8.92 crore from Tk 6.99 crore.

Apex Footwear’s total assets stood at about Tk 3,028 crore, while shareholders’ equity was Tk 692 crore at the end of March.

The company has also recommended a 30 percent dividend for the financial year ended June 30, 2026, comprising a 15 percent cash dividend and a 15 percent stock dividend.

Its earnings per share rose to Tk 7.91 in FY26 from Tk 6.90 a year earlier.

The US Transportation Department on Monday will finalize sharply lower vehicle fuel economy standards through 2031, reversing a push by the Biden administration to force automakers to build more electric vehicles, officials said on Saturday.

President Donald Trump said he had approved new fuel economy standards for cars and trucks, which he said will lower the price of new vehicles. "A major victory for America's auto workers is coming Monday," Transportation Secretary Sean Duffy said.
The new standards would cut the cost of new vehicles but increase fuel consumption and carbon dioxide emissions for decades, according to the department's own estimates.

Trump's push comes as American drivers are grappling with sharply higher fuel prices since the start of the US-Israeli war with Iran at the end of February.

Under Democratic President Joe Biden, the government sought to push automakers to build more electric vehicles to meet rising fuel-efficiency standards.

Biden increased required fuel efficiency for cars by 8 percent annually for model years 2024 and 2025, 10 percent for 2026 and 2 percent annually from 2027 to 2031.

The Trump administration in December proposed retroactively revising down the 2022 model year fuel economy standard and then raising it between 0.25 percent and 0.5 percent annually through 2031.

The Transportation Department proposed a fleetwide average of 34.5 miles per gallon (14.7 km per liter) by 2031, down from 50.4 miles per gallon (21.4 km per liter) under Biden.

It estimated its proposal would cut average new vehicle costs by $930 each.

But it would increase fuel consumption by around 100 billion gallons through 2050, fuel spending by $185 billion and carbon dioxide emissions by about 5 percent, the department said.

Trump's move will make it easier for automakers to sell consumers less efficient vehicles.

"Lowering standards will accelerate what (Trump) has already been doing: handing the clean tech future to China and forcing Americans to pay more at the pump," said Pete Buttigieg, who headed the Transportation Department under Biden.

Biden focused on reducing US greenhouse gas emissions and fossil fuel use, accelerating a transition to clean energy and making the US a global leader in clean-energy technology and manufacturing.

Bangladesh should begin preparing for negotiations to join the Regional Comprehensive Economic Partnership (RCEP), as the 15-member trade bloc has signalled a positive response to the country’s bid for accession, trade experts said.

The RCEP ministers approved the establishment of an Ad Hoc Accession Working Group to advance the accession process of Bangladesh, alongside Chile, Hong Kong and Sri Lanka, at a meeting in the Philippines on September 21.

The development comes more than two years after Bangladesh formally expressed interest in joining the world’s largest free-trade agreement.

In July 2022, an inter-ministerial meeting approved the commerce ministry’s proposal to join the RCEP to retain preferential market access after Bangladesh graduates from the United Nations’ least developed country (LDC) category.

Following that decision, the commerce ministry formally sent a letter of consent to the foreign ministry in October 2024, requesting Bangladesh’s accession to the RCEP.

‘A BIG DEAL’

Formation of a working committee by the RCEP ministers’ meeting for Bangladesh’s accession is a positive sign, said Mustafizur Rahman, distinguished fellow of the Centre for Policy Dialogue (CPD).

He said the bloc’s latest decision is significant as Bangladesh applied to join the group several years ago, but the application was not considered earlier.

“Joining the RCEP is a big deal because it is a bloc of 15 countries,” he said, adding that it would give Bangladesh access to improved trade benefits with all the member countries.

He noted that the development comes at a time when the government is seeking bilateral and regional trade agreements to preserve preferential market access after LDC graduation.

Mustafizur suggested that the government start preparing so that it can easily join the bloc.

‘MAKE EXTENSIVE PREPARATIONS’

Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said Bangladesh needs to make extensive preparations for the negotiations as accession to the RCEP requires Bangladesh to clear several stages.

The country needs to assess what it can offer RCEP members and whether the economy and domestic industries are prepared for greater competition under the trade agreement, he said.

The government should conduct studies on these issues and prepare its negotiating positions and recommendations before entering the accession process, he said.

Razzaque noted that the accession process could also create opportunities for Bangladesh to attract investment from RCEP member countries.

The bloc’s strong regional supply chains could generate opportunities for Bangladesh in both exports and imports if the country can integrate into them, he added.

At the same time, Razzaque said, Bangladesh needs to assess whether RCEP members could seek greater market access for their goods as part of the accession negotiations.

Member countries may seek commitments from Bangladesh to reduce tariffs or increase market access for their goods, as is common in trade agreements, he said.

‘CONDUCT COST-BENEFIT ANALYSIS’

Mostafa Abid Khan, chief executive officer of the Bangladesh Foreign Trade Institute (BFTI), said Bangladesh should conduct a comprehensive cost-benefit analysis before pursuing accession.

He suggested that the government assess the impact of potential tariff reductions and increased imports from RCEP members on local industries.

Echoing CPD’s Mustafizur, he noted that joining the RCEP could give Bangladesh improved market access to the Association of Southeast Asian Nations (ASEAN) and other member economies.WHAT IS RCEP?

The RCEP is a free-trade agreement among 15 economies — 10 ASEAN members, Australia, China, Japan, South Korea and New Zealand. Negotiations for the agreement formally launched in 2012, and the agreement was signed in November 2020. India participated in the negotiations but withdrew from the process in 2019.

The RCEP represents around 30 percent of global GDP and about one-fourth of global trade, making it the world’s largest free-trade agreement by economic size.

The bloc also accounts for around 31 percent of global foreign direct investment, according to estimates cited by trade researchers.

SK Trims & Industries reported a significant reduction in losses for the first nine-month of 2025-26 fiscal, supported by stronger export revenue and tighter operational cost management.

In a delayed submission of its quarterly financial statement during the July 2025 to March 2026 period, its net loss declined to Tk11.94 crore with a loss per share of Tk1.41.

At the same time of the previous year, its net loss was Tk18.72 with per share loss of Tk2.21 during the period of July to March 2025.

Regarding the improvement in losses, it said, the negative EPS has improved due to increase of the export revenue and reduction in the company's manufacturing costs and operating expenses.

As a result, the net loss after tax decreased compared to the corresponding period ending in March 2025.

In a major operational boost, its net operating cash flow per share (NOCFPS) surged into positive territory at Tk1.01 for the nine-month period, rebounding from a negative of Tk0.53 recorded in the previous year.

The company stated that the improvement in cash flows was driven mainly by higher cash collections from turnover during the period.

In the 2024-25 fiscal, SK Trims & Industries reported a net loss of Tk28.17 crore and decline in revenue to Tk28.43 crore, according to its auditor's report.

The report said, a primary driver of the operational disruption was a significant delay in the renewal of the company's bond license, which stemmed from internal administrative mismanagement and procedural oversights. Because the company's operations heavily rely on the bond facility, this lapse in the timely renewal immediately disrupted exports and imports schedules, the report said.

Lubricant prices in Bangladesh have risen sharply this year, with some products becoming up to 70% more expensive as higher international raw material and freight costs squeeze the market.

The latest increase in domestic fuel prices is adding to costs for vehicle owners, but industry insiders say lubricant prices are not directly linked to the government's fuel-price adjustment.

Rather, they attribute the surge primarily to global market conditions, particularly supply disruptions and higher costs linked to the conflict in the Middle East.

Md Delwar Hossain, senior vice-president of the Lubricants Importers Association of Bangladesh and managing director of RM Automobiles, said Bangladesh imports lubricants and the base oils used by local blenders largely from international markets, including the Middle East.

Lubricant import prices initially rose by 5-10% in the first few weeks after the conflict began on 28 February, Delwar said. Since then, prices of some lubricant products have risen by as much as 70%, he estimated.

"The price surge in lubricants is not directly connected to the government's decision," Delwar told The Business Standard, saying the market is primarily responding to international developments.

He warned that if the situation in the Middle East remains unchanged, further price increases and instability could hit Bangladesh's lubricant market.

Md Shahin Alom, senior general manager of MJL Bangladesh, said the sharp increase is primarily linked to rising costs and tightening supplies of base oils, which account for roughly 75-98% of a lubricant's formulation, with additives making up the rest.

Disruptions to supplies from major Middle Eastern producers, including Qatar's Pearl GTL, and restricted shipping through the Strait of Hormuz have tightened global availability of higher-grade base oils, he said.

Base oil prices that were around $850-900 per tonne before the crisis have risen to $2,000-2,200, while synthetic base oil prices have exceeded $3,200 per tonne, Shahin said.

Retail prices already rising

The increase is already visible at retail outlets.

Md Rahmatullah, proprietor of Rahmat Motors, said prices of several popular lubricant products rose significantly between January and September.

A 4-litre pack of Mobil Special rose from Tk2,050 to Tk2,650, while Mobil 5W-30 increased from Tk2,600 to Tk3,500. A 4-litre pack of Mobil 1 rose from Tk6,200 to Tk7,200.

Transmission fluids have also become more expensive, with some products rising by several hundred taka to Tk2,000 per 4-litre pack. Japanese CVT FE oil, for instance, increased from Tk5,000 to Tk7,000.

Rahmatullah expects another round of hikes as retailers replenish stocks purchased at higher costs.

Mohammad Rasel of Fair Auto, a retail seller of motorcycle lubricants, said some engine oils have risen by around Tk100-200 per litre in recent months.

As a result, many customers are now calculating their expenses more carefully before making purchases, he said.

Iftekhar Shimul, a university student and regular motorcycle user, said he used to buy engine oil for Tk850 in January, but the same product now costs Tk1,150.

Import dependence exposes market

The Bangladesh Lube Blenders Association estimates the country's lubricant market at around Tk8,000 crore, with annual demand of 160,000-170,000 tonnes.

Domestic blending plants meet more than half of local demand, while the rest comes from imported finished lubricants. The automotive sector accounts for around 47% of total lubricant consumption.

Local blending plants rely entirely on imported Group I, Group II and Group III base oils, primarily sourced from Middle Eastern refining hubs.

Specialised additives are also imported, leaving producers exposed to international commodity prices, freight costs and exchange-rate pressures.

Shahin said shortages have been particularly acute for Group II and Group III base oils as refiners have faced incentives to divert some feedstock towards diesel production amid tight global fuel supplies.

The disruption has affected supply security as well as prices, with buyers facing difficulty securing some grades of synthetic base oils, he said.

Freight, dollar costs add pressure

The conflict has increased shipping risks and costs along maritime routes in the Persian Gulf and Strait of Hormuz, pushing up freight, insurance and transit costs for lubricant imports, Delwar said.

Industry insiders said importers are also facing pressure from foreign-exchange liquidity and letters of credit, while uncertainty over customs valuation of imported lubricants is adding to the cost burden.

Shahin said insurance premiums for Middle East shipments have risen sharply, while shipping disruptions and limited vessel availability are adding to the cost of bringing base oils and finished products into Asian markets.

Fuel hike adds to transport costs

The government's latest increase in diesel, petrol and octane prices has added further pressure on vehicle and fleet operators.

While the fuel-price adjustment does not directly determine lubricant prices, Delwar said, consumers are now facing higher costs for both fuel and vehicle maintenance.

Industry participants also fear that continued increases in genuine branded lubricants could push price-sensitive consumers towards lower-quality, recycled or counterfeit products.

For Bangladesh's lubricant market, the pressure is therefore coming from both higher domestic operating costs and its dependence on imported raw materials and an international supply chain exposed to geopolitical disruptions.

India is set to resume methanol exports to Bangladesh by waterway, with two cargo vessels carrying the chemical from Assam's Dibrugarh expected to sail for Bangladesh through the Brahmaputra River.

The shipment will mark the resumption of the waterway export route from Dibrugarh for the first time since India's independence, Assam Petro-Chemicals Ltd (APL) Chairman Bikul Deka said.

The two vessels, belonging to the Assam government's Inland Water Transport Department, have been leased by APL to transport methanol to Bangladesh through National Waterway 2.

Each vessel has been loaded with 27 containers, with each container carrying 20 tonnes of methanol. The vessels will therefore carry 540 tonnes each.

The vessels are expected to travel approximately 783km from Bogibeel to the Bangladesh border in around seven days.

The methanol will be transported from the newly developed Bogibeel Inland Water Transport Terminal to Dhaka, according to India's Ministry of Ports, Shipping and Waterways.

The development comes as India seeks to revive inland waterway connectivity with Bangladesh, with the Brahmaputra serving as a key route for transporting goods between the two countries.

Bangladesh has embarked on a transformation journey to become a trillion-dollar economy by 2034, moving beyond the fragile economy inherited from the deposed regime, Prime Minister's Finance and Planning Adviser Rashed Al Mahmud Titumir has said.

Speaking as the chief guest at the biennial convention of the American Association of Bangladeshi Engineers and Architects (AABEA) in Detroit, Michigan, on Saturday, he said the government is pursuing a new development model based on recovery, restoration and reconstruction.

The model focuses on investment, production, employment and increased public investment in education and healthcare, the adviser said.

He said Bangladesh aims to establish itself as a competitive manufacturing hub through industrial diversification, higher productivity and technological advancement.

Titumir urged Bangladeshi-American engineers, scientists and technology entrepreneurs to act as a bridge to the US innovation ecosystem by connecting Bangladesh with leading universities, research laboratories, technology companies and investors.

He also called on diaspora professionals to mentor young Bangladeshi engineers, facilitate technology transfer, establish research partnerships and connect Bangladeshi start-ups with global capital and markets. "Your knowledge, credibility, experience and professional networks are themselves a form of investment in Bangladesh," he said.

The adviser proposed establishing a sustained platform to link the expertise of the Bangladeshi diaspora with universities, industries and entrepreneurs in Bangladesh.

"Let us transform individual Bangladeshi success in America into collective opportunity for Bangladesh," he said.

The convention was presided over by AABEA President Engineer Monir Zaman.

US Congresswoman Debbie Dingell, Michigan Supreme Court Justice Megan Cavanagh and Bangladeshi-American professionals from across the United States attended the convention.

Bangladesh’s foreign project aid disbursement dropped sharply by more than 60 per cent year-on-year to $294.56 million in the first two months of the current fiscal year, according to provisional data from the Economic Relations Division (ERD).

According to the ERD’s Foreign Assistance Monthly Report for FY2026-27, Bangladesh received $294.56 million in project assistance disbursement during July-August, down from $750.07 million in the corresponding period of FY2025-26.

The latest disbursement comprised $291.37 million in loans and $3.19 million in grants, compared with $746.16 million in loans and $3.91 million in grants a year earlier, reports UNB.

Among the major development partners, the Asian Development Bank disbursed $128.72 million during the two-month period, followed by the International Development Association (IDA) with $73.96 million.

Japan disbursed $39.04 million, while India provided $30.30 million and Russia $20.65 million. Other development partners accounted for $1.89 million.

Meanwhile, foreign assistance commitments during the period stood at $240.39 million, slightly lower than $243.81 million in July-August of the previous fiscal year.

The latest commitments consisted of $143.28 million in loans and $97.11 million in grants. A major portion of the commitment, $236.88 million, came from development partners categorised Other than ADB, IDA, AIIB, India, China, and Russia, while Japan committed $3.51 million.

Besides, external debt servicing rose by nearly 4.8 per cent year-on-year, with the country paying $698.92 million during July-August 2026.

The amount was $667.11 million in the corresponding period of FY2025-26, showing an increase of $31.81 million.

Of the total debt servicing in July-August, Bangladesh paid $516.04 million in principal and $182.88 million in interest.

In the same period last fiscal year, principal repayment stood at $488.79 million and interest payment at $178.32 million.

In taka terms, the total debt servicing increased to Tk 86.26 billion (Tk 8,626.25 crore) in July-August from Tk 81.30 billion (Tk 8,130.87 crore) in the same period of FY2025-26, an increase of Tk 4.95 billion (Tk 495.38 crore).

Principal repayment rose to Tk 6,368.85 crore from Tk 5,957.50 crore, while interest payments increased to Tk2,257.40 crore from Tk2,173.37 crore.

The higher debt-servicing requirement came at a time when the flow of foreign project assistance declined significantly.

The figures cover the July-August period of FY2026-27 and are provisional, according to the ERD’s Foreign Aid Budget and Accounts (FABA) wing.

Envoy Textiles Limited has recommended a 32.50% cash dividend, equivalent to Tk3.25 per share of Tk10 each, for the fiscal year ended 30 June 2026.

The company's board approved the audited financial statements and dividend recommendation at a meeting on 27 September, according to a price-sensitive information disclosure.

The textile manufacturer reported a net profit after tax of Tk138 crore for FY26, slightly down from Tk140.89 crore a year earlier. Its earnings per share (EPS) stood at Tk8.24, compared with Tk8.40 in FY25.

Despite the decline in profit, net operating cash flow per share (NOCFPS) rose sharply to Tk14.88 from Tk4.77. Net asset value (NAV) per share also increased to Tk60.33 from Tk58.32.

The company will seek shareholder approval for the dividend and audited financial statements at its annual general meeting (AGM) on 5 December. The record date has been set for 26 October.

The board has also proposed changing the company's name from "Envoy Textiles Limited" to "Envoy Textiles PLC", subject to shareholder approval at the AGM.

To showcase investment potentials, modern infrastructure, and investor-friendly facilities of the Sirajganj Economic Zone (SEZ) to business leaders and investors in the northern region, the "Bogura Investor Roadshow 2026" was successfully organized by Sirajganj Economic Zone Limited.

Around 75 local investors from the Bogura region participated in the roadshow, according to a media release.

Business leaders, industry representatives, local dignitaries, and invited guests were also present at the event. During the session, prospective investors were provided with a detailed overview of industrial setup opportunities, infrastructural advantages, and existing facilities available within the economic zone.

In his welcome address, Dr. Engr. Mohammad Kamruzzaman, Director of Sirajganj Economic Zone Limited, highlighted the significance of such regional investor roadshows in driving national industrialization and expanding investments.

Lieutenant Colonel Md. Shariful Islam (Retd.), Chief Administrative and Human Resources Officer of Sirajganj Economic Zone Limited, delivered the keynote presentation.

He elaborated on the investment prospects, infrastructural strengths, and business-friendly incentives designed for prospective investors at SEZ.

Member of Parliament for Bogura-4, Md. Mosharraf Hossain, addressed the event as a Special Guest, while Member of Parliament for Bogura-6, Rezaul Karim Badsha, graced the occasion as the Chief Guest.

In addition, A. K. M. Ahsanul Tayeb Zakir, Administrator of the Bogura District Council, and M.S.M. Atiqur Rahman Badal, President of the Bogura Chamber of Commerce and Industry, spoke as distinguished speakers.

The speakers shared their valuable insights on advancing industrialization, boosting investment expansion, and accelerating regional economic activities.

During the ceremony, A. Matin Chowdhury, Chairman of Sirajganj Economic Zone Limited, handed over honorary crests to the esteemed guests.

In his concluding remarks, Chairman A. Matin Chowdhury extended his gratitude to the participating investors, business leaders, guests, and industry representatives.

He noted that such initiatives play a pivotal role in establishing direct communication with prospective investors and attracting new industries to the Sirajganj Economic Zone.

Through the "Bogura Investor Roadshow 2026," Sirajganj Economic Zone Limited has reaffirmed its commitment to building stronger connections with entrepreneurs and investors of the northern region, positioning SEZ as a premier and promising destination for future industries and investments, the release adds.

Palli Karma-Sahayak Foundation (PKSF) has taken an initiative to provide a total of Taka 72.45 billion (7,245 crore) in financing to promote renewable energy use and foster new entrepreneurship in the cottage and microenterprise sectors.

Of the total amount, Taka 500 crore will be allocated for expanding rooftop solar power generation, BSS reports citing a press release.

The decisions were taken at a meeting of the PKSF Board of Directors held today (Sunday) at PKSF Bhaban-1 with PKSF Chairman Zakir Ahmed Khan in the chair.

Managing Director (MD) Md Fazlul Kader and other board members attended the meeting.

The Board approved Taka 5,000 crore in Bangladesh Bank-financed loans to support the creation of new entrepreneurs in the cottage and microenterprise sectors.

The financing will support technology-driven agriculture and agro-processing, manufacturing, services and various value-chain-based activities at the grassroots level.

The initiative aims to utilise the skills and productive capacity of low-income communities to create new entrepreneurs and expand employment opportunities, according to the PKSF.

Meanwhile, PKSF has launched a specialised financing programme, backed by a Taka 500 crore government allocation, to expand rooftop solar power generation.

Under the programme, the Board approved a specialised lending policy titled 'Shouro Shokti' to provide loans to customers through partner organisations at an interest rate of six percent.

The Board also approved nearly Taka 2,000 crore in loans for PKSF's partner organisations to support cluster-based microenterprises, general services, the ultra-poor, agriculture and other sectors.

The capital market opened the week on a weak note today (27 September), with investors selling shares amid anxiety over upcoming corporate financial results and a lack of fresh positive triggers, sending the benchmark index down for a second consecutive session.

The DSEX, the benchmark index of the Dhaka Stock Exchange, fell 45 points, or 0.81%, to settle at 5,532, while the blue-chip DS30 index dropped 12 points to close at 2,099.

Market breadth was overwhelmingly negative, with 277 issues declining against 75 advancing and 36 remaining unchanged. Daily turnover fell 4% to Tk727 crore from the previous session.

Stockbrokers attributed the downturn mainly to anxiety over corporate earnings and continued profit-booking.

In its daily market review, EBL Securities said the benchmark opened in negative territory as cautious investors adopted a wait-and-see approach amid limited conviction about the market's upward trajectory. The absence of immediate bullish catalysts and uncertainty over upcoming earnings announcements from companies with June year-end kept buyers largely on the sidelines.

Sheltech Brokerage Limited similarly said selling pressure dominated the session, dragging the benchmark to an intraday low of 5,532 points, where it eventually closed.

Large-cap and blue-chip stocks bore the brunt of the selling, with LafargeHolcim Bangladesh, Pubali Bank, Islami Bank Bangladesh, United Commercial Bank and Beximco Pharmaceuticals emerging as the major drags on the index.

Textiles generated the highest turnover, accounting for 19.2% of total transactions, followed by general insurance at 17.1% and pharmaceuticals at 14.7%.

Declines were widespread across major sectors. Cement suffered the steepest fall, dropping 3.3%, while life insurance declined 2.2% and information technology fell 1.9%.

Jute and mutual funds bucked the broader market trend, each gaining 2.8%, while general insurance rose 0.6%.

Among individual stocks, Prime Bank 1st ICB AMCL Mutual Fund topped the gainers with a 9.85% rise, followed by CAPM IBBL Mutual Fund, up 9.65%, ICB AMCL First Agrani Bank Mutual Fund, up 7.22%, Samorita Hospital, up 7.01%, and Khulna Printing, up 6.71%.

Meghna Condensed Milk led the losers, falling 6.09%, followed by CNA Textile, down 6.06%, Sharp Industries, down 5.75%, Premier Cement, down 5.64%, and BIFC, down 5.55%.

The Chittagong Stock Exchange (CSE) mirrored the decline in Dhaka.

Its selective CSCX index fell 90 points to settle at 9,057, while the all-share price index, CASPI, dropped 128 points to close at 14,783.

However, turnover at the CSE moved against the broader trend, surging 136% to Tk39.52 crore.

The Bangladesh Association of Publicly Listed Companies (BAPLC) has proposed a clear and measurable Capital Market Development Roadmap for 2026-30, with specific priorities, targets and timelines to ensure policy stability and regulatory predictability.

The proposal was made at a meeting between BAPLC and the Bangladesh Securities and Exchange Commission (BSEC) at the commission's Agargaon office on 24 September.

BAPLC President Riad Mahmud led the association's delegation, while BSEC Chairman Masud Khan and Commissioners Tanwir Habib Rahman, Md Nafeez Al Tarik and Hossain Sadat attended the meeting.

The association said the roadmap should be developed through consultations with all relevant stakeholders and provide a long-term framework for coordination among the regulator, stock exchanges, listed companies, institutional investors and other market participants.

It proposed focusing on improving IPO quality, increasing institutional investment, developing corporate bonds and other investment products, and improving market liquidity.

More flexibility in IPO proceeds

BAPLC proposed raising the existing 30% limit on the use of IPO proceeds for loan repayment under the Public Offer of Equity Securities Rules 2025.

It said many potential issuers have financed business expansion through long-term industrial loans and should therefore be allowed greater flexibility to use IPO proceeds to repay loans, including classified or rescheduled loans, subject to proper disclosure, regulatory oversight and investor protection.

Same-group executives

The association also sought an exception to the Corporate Governance Code provision that bars key executives of a listed company from simultaneously holding executive positions in another company.

BAPLC proposed allowing such arrangements within the same corporate group, citing the prevalence of group and family-owned businesses in Bangladesh.

It suggested safeguards including board approval, prior BSEC approval, proper disclosure and compliance with conflict-of-interest and related-party transaction rules.

Action against 'AGM parties'

BAPLC urged BSEC to take action against what it described as "AGM parties" who allegedly buy nominal shares before record dates and later demand money or other benefits from companies ahead of annual general meetings.

The association said such groups may create disorder or disrupt AGMs if their demands are not met, affecting genuine shareholders and corporate governance.

It called for preventive measures and regulatory action against the practice.

Surveillance, buybacks and board diversity

BAPLC also called for stronger surveillance and enforcement against market manipulation, insider trading and other irregularities.

It proposed regulatory frameworks for employee stock option plans and share buybacks, saying these could provide additional options for listed companies and investors.

On female independent directors, the association recommended shifting from profession-based eligibility to a competency-based approach. It suggested considering expertise in technology, artificial intelligence, cybersecurity, engineering, manufacturing, ESG, climate risk and digital transformation.

It also proposed a National Independent Directors Talent Registry and a Board Skills Matrix to better match directors' expertise with companies' needs.

Other proposals included reviewing CIB reporting requirements for independent directors, clarifying the definition of beneficiaries under the Workers' Profit Participation Fund, and allowing companies to allocate 1% of expenditure to CSR activities.

The BAPLC document presented the proposals for discussion with BSEC. It did not indicate that the commission had formally accepted the proposed roadmap or set a timeline for its implementation.

Prime Minister Tarique Rahman has sought international partners support to transform Bangladesh into a global manufacturing hub, calling for adequate financing, greater market access, technology transfer and capacity-building assistance to ensure a smooth and sustainable graduation from the least developed country (LDC) category.

Addressing the 81st session of the United Nations General Assembly at the UN headquarters in New York on Thursday evening local time, the prime minister said Bangladesh was implementing a broad range of programmes to turn its working-age population into a skilled workforce and create more employment opportunities.

“Bangladesh seeks the support of its development partners in this endeavour,” he said.

On Bangladesh’s graduation from the LDC category, Mr Rahman stressed the need for continued international assistance to make the transition sustainable.

“Continued support in areas such as adequate financing, enhanced market access, technology transfer and capacity-building is essential to ensure a sustainable graduation for Bangladesh and other countries,” he said.
Highlighting the importance of regional economic integration, he said countries could contribute to one another’s prosperity through trade facilitation, improved connectivity and meaningful cooperation, particularly at the regional level.

He said the government had allocated $50 million in the current fiscal year to support start-ups led by young entrepreneurs, researchers and innovators.

The prime minister also called for greater access to advanced technologies, knowledge and research opportunities, saying Bangladesh’s large young population and expanding digital capabilities offered significant opportunities.

“We do not want today’s digital divide to become tomorrow’s artificial intelligence divide,” he said.

He stressed the need to ensure that developing countries were not left behind in the rapid advancement of science and technology.

“No country should be left behind in this journey of scientific progress,” he said.Follow Federal Policy

Mr Rahman also called on the United Nations to develop effective policy frameworks to ensure that the benefits of artificial intelligence and social media could be harnessed positively.

On the Rohingya crisis, the prime minister said Bangladesh had been hosting more than 1.2 million forcibly displaced Rohingyas from Myanmar for over nine years, putting immense pressure on the country’s resources, environment, security and host communities.

He said the crisis originated in Myanmar and its solution lay there.

“The only solution to this problem is the safe return of the displaced Rohingya population to their homeland in Myanmar,” he said.

He called for firm and effective support from the United Nations and the international community to resolve the crisis, while urging continued life-saving humanitarian assistance until repatriation became possible.

The prime minister also called for stronger global cooperation to ensure safe, orderly and regular migration, stressing the need to protect the rights, dignity and welfare of migrant workers.

Turning to climate change, he said Bangladesh contributed little to global carbon emissions but continued to bear the brunt of its adverse impacts.

He called for stronger global action on climate justice, climate finance and adaptation support ahead of the COP31 climate conference.

Mr Rahman also highlighted the government’s plans to plant 250 million trees over the next five years, excavate 20,000 kilometres of canals and implement the Teesta Master Plan and the Padma Barrage project.

Outlining the government’s development strategy, he said it had adopted a three-R approach centred on recovery, rehabilitation and reconstruction to rebuild the economy and society.Try CAD Software

He said Bangladesh was entering a period of significant opportunities and was working to turn its demographic dividend into a skilled workforce.

“No state can become strong by keeping its people disempowered,” he said.

The prime minister expressed his vision of building a prosperous, self-reliant, welfare-oriented democratic Bangladesh where all citizens, regardless of political affiliation, religion or ethnicity, could live with equal rights, dignity and security.

He said the government wanted to build a country where young people could pursue their dreams without fear or barriers, women could live with confidence and every child could realise their full potential.

“Bangladesh First: Bangladesh for All,” he said.

Spanish business leaders and entrepreneurs see significant trade and investment opportunities in Bangladesh's textiles, pharmaceuticals, infrastructure, renewable energy, agribusiness, information technology, logistics and consumer goods sectors.

They made the observation at a seminar titled "Bangladesh: A Strategic Partner in the Global Economy", held in Madrid on Thursday, according to a press release issued yesterday.

Madrid Chamber of Commerce President Ángel Asensio highlighted Bangladesh's market potential, describing the country as one of Asia's emerging and important markets.

He said Bangladesh is moving towards sustainable growth and economic stability, while noting that the European Union is one of the country's major trading partners, with bilateral trade reaching around €23.3 billion in 2025.

Asensio also highlighted the potential for green investment in Bangladesh. He said there are opportunities for around $172 billion in green investment in Bangladesh during 2018–2030 in areas including green buildings, transport, climate-smart agriculture, infrastructure and waste management.

He identified export diversification as both a major challenge and an important opportunity for Bangladesh's economy.

Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Administrator Md Fazlul Haque called on European businesses to invest in Bangladesh, saying the government is encouraging foreign investment.

He said there are plans to offer major incentives, including free land for investors in the renewable energy, logistics and infrastructure sectors, while the government would purchase electricity from such projects at fixed prices.

Although Bangladesh faces some challenges in doing business, he said the country offers significant opportunities and potential for profitable investment.

The FBCCI administrator also invited a business delegation from the Madrid Chamber of Commerce to visit Bangladesh.

In response, the Madrid Chamber president said a high-level business delegation is planning to visit Bangladesh around November.

Bangladesh Ambassador to Spain Md Masudur Rahman attended the seminar organised by the Madrid Chamber of Commerce.

EuroCham Bangladesh President Nuria Lopez, international trade consultant Pablo Araujo, Molins Executive Vice President for Asia and Africa Tarek Elba, and Recover Global Director of Sustainability Ana Rhodes participated in the panel discussion.

Invest Bangladesh member Nahian Rahman Rochi and Export Promotion Bureau (EPB) Vice-Chairman and CEO Mohammad Hasan Arif joined the seminar via video conference and highlighted Bangladesh's trade and investment prospects.

A B2B networking session between Bangladeshi and Spanish business representatives was held at the conclusion of the programme.

FBCCI Secretary General Md Alamgir and members of the FBCCI business delegation visiting Spain, along with representatives of the Madrid Chamber of Commerce and EuroCham Bangladesh, also attended the event.

A 26-member FBCCI business delegation, led by Administrator Md Fazlul Haque, left for an 11-day tour of Europe on 23 September with the aim of boosting bilateral trade with European countries, establishing industrial linkages and attracting foreign direct investment (FDI).

Stocks extended their winning streak for a second straight week as bargain hunters stepped in to snap up beaten-down shares, driving up the benchmark index.

But the recovery came under a fresh cloud as the government raised fuel prices by Tk 20 per litre, stoking fears of higher inflation, rising business costs and weaker corporate earnings.

The Dhaka Stock Exchange (DSE) saw three sessions, out of five, close higher, as investors selectively bought fundamentally strong and momentum-driven stocks. The remaining two sessions ended lower amid growing caution over the impact of higher fuel costs.

The benchmark DSEX gained 46 points, or 0.83 per cent, to settle the week at 5,578. It has gained a total of 63 points over the past two weeks.

Market participants said bargain hunting remained the main driver of the recovery, with investors returning to stocks that had suffered sharp corrections and were considered relatively attractive at current prices.

This week, the fuel-price hike emerged as a major concern. On Sunday night, the government raised the prices of all four major petroleum products by Tk 20 per litre, citing higher global fuel prices and freight costs amid the ongoing conflict in the Middle East.

"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 higher fuel costs could slow earnings growth for many listed companies in the coming quarters.

The hike is expected to raise transportation, logistics and production costs for businesses, putting further pressure on operating margins. Investors are also concerned that higher energy costs could fuel inflation and delay any meaningful easing of borrowing costs.

In its weekly market review, EBL Securities said stocks closed higher mainly on broad-based bargain hunting in perceived attractive scrips, although the sustainability of the recovery would depend on the resolution of prevailing economic concerns and a restoration of investor confidence.

The brokerage said concerns over the domestic fuel-price increase and its potential impact on inflation and corporate earnings triggered renewed caution in the market.

Still, selective buying in fundamentally sound and trending stocks helped the indices recoup some of their recent losses before a sell-off in the final session signalled a cautious approach among investors.

The DS30 index, which tracks blue-chip shares, rose 11 points to 2,112, while the Shariah-based DSES index gained nine points to 1,116.

Large-cap stocks provided significant support to the DSEX. Square Pharmaceuticals, LafargeHolcim Bangladesh, Orion Infusion and Mutual Trust Bank together contributed more than 18 points to the weekly rise in the benchmark index.

Trading activity picked up sharply as investors returned to selected beaten-down shares. Total turnover on the DSE rose to Tk 39.30 billion during the week from Tk 27.74 billion in the previous week.

Average daily turnover jumped 42 per cent to Tk 7.85 billion from Tk 5.55 billion, signalling a significant increase in trading participation.

The textile sector dominated turnover, accounting for 20.5 per cent of total trading activity, followed by general insurance with 15.5 per cent and pharmaceuticals with 13.1 per cent.

Market breadth remained firmly positive, with 252 issues advancing against 105 declining, while 29 remained unchanged.

The mutual fund sector led the sectoral advance, gaining around 6 per cent. Non-bank financial institutions, pharmaceuticals, engineering, telecommunications and power also posted gains.

Eastern Bank emerged as the week's most-traded stock, with shares worth Tk 1.10 billion changing hands. Sharp Industries, Square Pharmaceuticals, IPDC Finance and Saiham Textile followed in terms of turnover.

The Chittagong Stock Exchange (CSE) also ended the week higher. Its All Share Price Index (CASPI) rose 176 points to close at 14,912, while the Selective Categories Index (CSCX) gained 125 points to 9,148.

A further Tk 20 per litre increase in fuel prices has landed at a difficult time for most households in Bangladesh. It comes five months after the last major adjustment in April, followed by a smaller rise in June. Fuel prices have risen across much of the world following the conflict that began with US and Israeli strikes on Iran and subsequent tensions around the Strait of Hormuz. For Bangladesh, the impact is compounded by persistent domestic inflation.

For more than four years, Bangladesh has struggled to bring inflation down from rates close to 10 percent, against a longer-term average of around 5-6 percent. Before the Hormuz crisis, Bangladesh maintained relatively low domestic fuel prices compared with many other countries. Now the situation is such that while inflation stays elevated, the government is having to make substantial price adjustments given its acute fiscal space constraint, with the tax-GDP ratio falling below 8 percent.

Higher fuel costs would ripple through almost every economic activity, raising the cost of producing goods, transporting them to market and providing essential services

In fact, among the developing countries with which Bangladesh is commonly compared, its fuel price increase since the Hormuz conflict has been one of the largest, at around 38 percent, compared with less than 10 percent in India, 19 percent in China and 27 percent in Viet Nam. Indonesia has experienced a gasoline price rise nearly as large as Bangladesh’s, but inflation in Indonesia is much lower, at around 3.3 percent.

The dual blow of prolonged high inflation and steep fuel price increases falls on consumers, particularly poor and vulnerable households. It comes amid recent assessments suggesting that poverty in Bangladesh is likely to have risen substantially since the last official household survey in 2022.

Higher fuel costs would ripple through almost every economic activity, raising the cost of producing goods, transporting them to market and providing essential services. Poor households, small farmers, and enterprises with limited working capital have the least capacity to absorb the additional pressures, whether through higher prices, narrower margins or reduced consumption.

One may well ask how many more shocks households can bear when their real purchasing power has been declining for years. Yet, for several years now, the response to prolonged inflation has too often been delayed and half-hearted, without sufficient attention to the scale of the problem.

During the interim government’s tenure, efforts to control inflation relied heavily on demand management. Bangladesh Bank raised its policy rate and maintained a tight monetary stance, but liquidity support for troubled banks and rising government borrowing, particularly borrowing directly from the central bank, complicated that effort. Supply-side measures received less sustained attention.

After the February 2026 election, the new government recognised the importance of bringing inflation down. Its first budget, however, set an ambitious growth target and substantially higher spending. This was accompanied by a large stimulus package for struggling industries, significant provision for restructuring weak banks and, subsequently, approval of a new public-sector pay scale for phased implementation. Bangladesh Bank also reduced its policy rate by 50 basis points. Each measure responds to a real problem, but together they raise the question of whether the drive to revive growth is adequately reconciled with lowering inflation.

Spending out of the crisis is risky when inflation remains high and firms cannot readily expand production. Energy shortages and reliance on imported fuel constrain the supply response, while additional demand could put fresh pressure on prices and the foreign exchange reserves Bangladesh Bank is seeking to rebuild. This makes the supply constraints central to the inflation debate.

One principal element of the supply side deserves closer examination. Merchandise imports fell from a peak of $79 billion in FY22 to $68 billion in FY25. According to Bangladesh Bank’s provisional estimates, imports recovered substantially to $75 billion in FY26, though they remained below the FY22 level. Import compression may have contributed to supply shortages. The policy question is whether formal or informal barriers to importing essential goods and production inputs are unnecessarily restricting supply.

This question warrants a systematic comparison of prices for selected essentials in Bangladesh, international markets and, particularly, neighbouring countries, allowing for differences in exchange rates, quality, transport costs and taxes. Where substantial gaps persist, there is a need to examine whether tariffs, import permissions, access to foreign exchange or delays in opening letters of credit are restricting supply.

This is also an opportune moment to consider prudent tariff rationalisation, with particular attention to the widespread use of supplementary and regulatory duties. These duties can impede imports even where domestic producers are unable to increase supply sufficiently. Easing such constraints and facilitating imports could relieve price pressures.

The pressure to rebuild foreign exchange reserves makes import policy sensitive. Reserve accumulation remains essential, but the budget’s projection of $41 billion in gross reserves by the end of FY27 should be weighed against the costs of restricting imports. The objective should be to rebuild reserves without unnecessarily constraining the supply of essential goods and production inputs.

There is a fiscal dimension too. With weak revenue mobilisation, ambitious spending plans can mean greater government borrowing. Support for troubled banks, industrial stimulus and public-sector pay increases may each have a case, but their scale, timing and financing matter when bringing down inflation is already proving difficult. Price stability needs to carry greater weight in these decisions.

Stabilising the taka helps contain import costs and inflationary pressures. During high inflation, taka depreciation would only add fuel to the fire. However, if inflation remains high while the nominal exchange rate barely moves, the taka may appreciate in real terms, undermining export competitiveness.

For instance, as against Bangladesh’s average rate of 9-10 percent during FY23–FY26, India’s inflation fell from 6.7 percent to around 4 per cent; Viet Nam was able to contain it within 3-4 percent while China saw near-zero inflation. These differences must have put pressure on Bangladesh’s export competitiveness and contributed to its recent difficulty in expanding exports. Holding the nominal exchange rate steady cannot substitute for bringing inflation under control.

Finally, goods must move reliably from farms, ports and factories to markets. Extortion along transport routes, delays and other logistical obstacles add to costs and disrupt supply. Tackling them requires sustained enforcement, alongside better freight and market infrastructure. Without a more effective domestic supply chain, even adequate imports or harvests may fail to ease prices where consumers buy their essentials.

The fuel price increase has exposed a wider policy challenge. There is a critical need to protect vulnerable households now while addressing the import, fiscal and distribution constraints that have allowed high inflation to persist. Households cannot keep absorbing external shocks through a steady loss of real purchasing power. Nor can it be overemphasised that failure to rein in inflation is likely to have serious consequences for macroeconomic stability and external competitiveness.

The socioeconomic costs of persistent inflation are too high for price stability to be weakened by conflicting policy choices; tackling it requires sustained commitment and prudent, practical measures across the economy.

The author is an economist who serves as chairman of Research and Policy Integration for Development (RAPID). He can be reached at m.razzaque@rapidbd.org

The US has secured a 6 percent share of Bangladesh’s corn imports in the 2025-26 marketing year (MY), marking a re-entry into the market after eight years.

Bangladesh imported over 17.4 lakh tonnes of corn to meet the requirements of its feed industry, of which approximately 111,000 tonnes were of American origin in MY26, according to a report by the US Department of Agriculture (USDA) released early this month.

Brazil remained the largest supplier, accounting for 68 percent of Bangladesh’s total corn imports, followed by India at 24 percent, said the agency in its Grain and Feed Update on Bangladesh.

The share of Brazil in corn shipments, however, declined in MY26, which began in May. Bangladesh imported about 93 percent of its corn from Brazil in MY25, followed by 4 percent from Argentina and 2 percent from Pakistan, according to a previous USDA report.

The re-entry of US corn began after three Bangladeshi feed companies initiated the first purchase of approximately 60,000 tonnes, and the grain arrived at Chattogram port in the first week of January this year.

The development came amid broader trade engagement between Bangladesh and the US after Dhaka agreed to increase imports from the US to help narrow an annual trade gap exceeding $6.2 billion in its effort to avoid a high tariff on Bangladesh’s exports announced by the Trump administration as part of reciprocal tariffs. The US Supreme Court later ruled them illegal.

The US agency earlier said that, historically, India has been one of the major corn suppliers to Bangladesh due to its price competitiveness, efficient logistics and shorter shipment durations.

However, since 2024, India’s exportable surplus of corn has declined significantly as the country has increased corn-based biofuel production. As a result, Brazil has emerged as the leading supplier.

For the current MY27, Bangladesh’s private sector is expected to import 18 lakh tonnes of the grain, up 3.4 percent year-on-year. In the first three months of MY27, Bangladesh imported around 115,000 tonnes of corn, according to the latest report.

“Corn imports are expected to remain strong, supported by continued growth in Bangladesh’s poultry, aquaculture, and cattle feed industries. However, import volumes fluctuate from year to year depending on domestic corn production and market availability,” it said.

Over the past several years, Bangladesh has imported an average of approximately 15 lakh tonnes of corn annually. The US agency said corn is now the second-largest grain crop in Bangladesh in terms of acreage and production after rice, and farmers are increasingly cultivating corn due to its high yields and strong market prices that make it a profitable crop.

“As demand for livestock and aquaculture products continues to grow, corn production is expected to increase, with farmers adopting improved hybrid seeds and better farming techniques to maximise yields,” it said.

In Bangladesh, farmers grow corn in both the summer and winter seasons, with the USDA forecasting 60 lakh tonnes of production, an increase of 1.7 percent year-on-year.

However, domestic production alone cannot meet the requirement for the grain from feed mills that cater to the poultry, fisheries and livestock industries.

Bangladesh requires over 71 lakh tonnes of corn annually, and approximately 90 percent of local harvests are absorbed by animal feed manufacturers, as poultry feed relies primarily on corn as its main raw material.

For the current MY27, the USDA has kept its forecast for the country’s total feed and residual corn use at 72.5 lakh tonnes, up 2.1 percent from its estimate for MY26.