Bangladesh has been registering a gradual decline in foreign tourist arrivals over the last two years amid political turmoil, security concerns and inadequate infrastructure and services.

The country recorded 239,400 foreign tourist arrivals in the first six months of 2026, down around 20 percent year-on-year, according to data from the Special Branch of Police and Bangladesh Bank, compiled by the Bangladesh Bureau of Statistics.

This is the second consecutive year of decline since Bangladesh welcomed more than 667,000 foreign visitors in 2023. The country received 585,145 foreign visitors in 2025, down 4 percent year-on-year.

HM Hakim Ali, president of the United Tourism Stakeholders’ Society of Bangladesh (UTSSOB), said Bangladesh is failing to attract foreign tourists despite its natural attractions because it is not adequately prepared to receive international visitors.

“We need to bring foreign tourists and earn from outside,” he said.

The decline in inbound tourism also comes at a cost to foreign-currency earnings, particularly as around two million Bangladeshis travel abroad each year.

“Countries such as China and Vietnam are making it easier for Bangladeshis to obtain visas because they understand the value of this market. We need to think about how to bring money into the country, not just how to stop money from going out,” he said.
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Hakim said Bangladesh needs better marketing, roads, communication, clean toilets, restaurants and maintenance of tourist attractions.

Md Taslim Amin Shovon, chief executive officer of Innoglobe Travels and Tours, said political turmoil and security concerns were major reasons behind the decline in tourist arrivals.

“Many embassies earlier raised travel alerts regarding travelling to our country. They are yet to give any green signal,” he said.

“The situation has worsened over the last two and a half years,” he added.

“We do not know what is going to happen. We are really worried,” Shovon said. “We do not have any projection of good business.”

Shovon said they had urged the government to introduce e-visas and set up a dedicated desk to provide services to foreign tourists on arrival. It takes a lot of time for foreign tourists to get clearance at the airport, he added.

Santus Kumar Deb, a tourism expert and professor in the Department of Tourism and Hospitality Management at the University of Dhaka, said Bangladesh needs to improve price, quality and service to become more competitive.

“Nearly 90 percent of our tourists are domestic, while only 10 percent are international,” he said.

Bangladesh also needs stronger digital branding, including AI-based storytelling, QR codes and short promotional videos to highlight lesser-known destinations, Deb said. E-reservations, e-visas, self-check-in and cashless transactions could also improve the visitor experience.

Better coordination among government agencies, stronger security and greater involvement of local communities are also needed.

The government is turning to digital technology and artificial intelligence as part of its efforts to revive tourism. The official theme of World Tourism Day 2026 is “Digital Agenda and Artificial Intelligence to Redesign Tourism”.

Fahmida Akhtar, secretary of the civil aviation and tourism ministry, said the government wants to raise tourism’s contribution to GDP to 7 percent from the current 2-3 percent.

The government is also updating the tourism master plan and preparing a tourism satellite account to measure the sector’s contribution.

Mutasim Billah Faruqui, chief executive officer of the Bangladesh Tourism Board, said the government would strengthen international promotion by engaging foreign diplomats, bloggers, influencers and journalists and participating in overseas tourism fairs.

The European Union is facing an energy price crisis as fallout from the Iran war roils oil and gas markets, the bloc’s energy chief said on Friday in a letter seen by Reuters that urged countries to consider measures to curb natural gas demand.

“We are facing a price crisis linking to a supply crisis,” EU Energy Commissioner Dan Jorgensen said in a letter to EU countries’ energy ministers.

Europe is heavily dependent on imported oil and gas.

Foreign suppliers cover about 80 percent of the bloc’s gas needs, leaving it highly exposed to surging global energy prices caused by the Iran war’s effective closure of the Strait of Hormuz, normally a transit route for 20 percent of the world’s oil and liquefied natural gas.

Europe has not yet faced supply shortages, but is grappling with soaring prices, leaving some countries struggling to fill gas storage ahead of winter, when demand for home heating peaks.

EU-wide gas storage is about 70 percent full, 12 percentage points below the same time last year, data from Gas Infrastructure Europe showed.

Jorgensen said that the EU is better prepared now than it was in winter 2021 when Russia squeezed Europe’s gas supplies by reducing deliveries, thanks to increased LNG import capacity, more renewable energy and reduced gas demand.

But he urged governments to step up preparations for the winter.

“I invite you to consider taking or continuing to take measures that can sustain [gas storage] injections or reduce gas and electricity demand for as long as necessary,” Jorgensen said.

Such measures could include limiting temperatures in public buildings, preventing outdoor heating and switching off unnecessary public lighting, Jorgensen said.

A European Commission spokesperson did not immediately respond to a request for comment.

Foreign investors are showing renewed interest in Bangladesh's stock market in September, with their purchases exceeding sales and signalling a tentative shift in sentiment after years of sustained withdrawals from the country's capital market.

Foreign investors bought shares worth around Tk250 crore and sold about Tk180 crore between 1 and 24 September, leaving a net investment of roughly Tk70 crore, according to Dhaka Stock Exchange (DSE) data.

The latest figures come after a prolonged period of weak foreign participation, which market insiders attributed to regulatory intervention, political uncertainty, geopolitical instability, currency depreciation and difficulties in repatriating funds.

A managing director of a brokerage firm said the Dhaka bourse was finally seeing an increase in foreign investment in September after a long period of selling pressure.

"Following the national election and the formation of the new government, regulatory easing and commitments from government authorities have helped attract foreign investors back to the capital market," he said.

The buying trend has been visible on most trading days this month. Foreign investors bought more shares than they sold on 13 trading days between 1 and 24 September, while selling exceeded buying on only two days, according to DSE data.

Market participants said the removal of the floor price, along with a series of regulatory reforms, has helped improve the investment environment.

A senior DSE official said the new securities regulator under the BNP-led government had removed the floor price and introduced several measures aimed at making the market more flexible.

The Bangladesh Securities and Exchange Commission (BSEC) has also revised initial public offering rules and drafted direct listing rules for fundamentally sound companies and foreign companies seeking to list on the local exchange. The regulator has revised margin rules, signalling a move towards easing regulatory hurdles.

"The BSEC has also assured market participants that it will not interfere in the market unnecessarily," the DSE official said, describing the changes as a positive development for the capital market.

Another factor supporting foreign investor sentiment is the planned return of Bangladesh to the regular review process of global index provider MSCI.

MSCI said in its August Equity Index Review that it would resume the implementation of index review changes and corporate events for the MSCI Bangladesh Indexes from the November 2026 index review. The decision marks a move towards normalisation after MSCI placed Bangladesh under "special treatment" in 2023 amid disruptions associated with the floor price mechanism.

MSCI's special treatment mechanism allows the index provider to modify or suspend its standard review procedures for markets or securities facing significant disruptions. The resumption of regular reviews is therefore being viewed by market participants as a step towards restoring Bangladesh's standing among international portfolio investors.

Regulatory changes by Bangladesh Bank (BB) have also reduced some of the operational hurdles faced by overseas investors.

In March, the central bank raised the threshold for prior approval of capital repatriation by foreign investors to Tk100 crore from Tk10 crore. The measure was intended to simplify the repatriation process and bring the regulatory framework closer to international practices.

BB subsequently removed another major compliance hurdle by scrapping the requirement for an auditor's certificate for every transaction by non-resident investors.

Under the new arrangement, authorised dealer banks can deduct or withhold applicable taxes on capital gains directly from the sale proceeds of shares or securities held by non-resident investors. The proceeds can then be credited to the investors' Non-Resident Investor Taka Accounts, or NITAs, before payment of the applicable taxes to the government.

Previously, investors were required to obtain a chartered accountant's certificate for individual transactions to determine capital gains tax before proceeds could be reinvested or repatriated. Market participants said the process often caused delays and increased compliance costs.

The improvement in September follows fluctuating foreign participation throughout the year. Foreign turnover stood at Tk663 crore in February, before falling to Tk272 crore in March, Tk175 crore in April and just Tk73.92 crore in May. It then increased to Tk540 crore in June and Tk523 crore in July before declining to Tk318 crore in August. Foreign turnover reached around Tk400 crore in the first 24 days of September, according to DSE data.

Despite the recent improvement, foreign participation remains relatively small compared with the overall size of the market. Foreign investment in Bangladesh's stock market currently stands at around Tk13,000 crore, while only about 132 of roughly 360 listed companies have some level of foreign shareholding.

BRAC Bank has the highest foreign ownership among listed companies at around 35%, followed by Olympic Industries with more than 25%. Beximco Pharmaceuticals, Navana Pharmaceuticals, Square Pharmaceuticals and Renata are among the other companies with significant foreign shareholdings.

According to the Central Depository of Bangladesh, the non-resident accounts (Beneficiary Owners Accounts) stood at 41,937 at the end of 24 September.

Washington and Beijing may have bought themselves breathing space with an extended trade truce, but analysts warn that time is running out for the world’s two biggest economies to resolve their strategic rivalry.

President Donald Trump and Chinese counterpart Xi Jinping concluded a pomp-filled summit Friday, with the US leader confirming they would meet twice more this year.

But even as Trump and Xi “are making nice,” their countries “remain locked in a bitter competition over trade, tech, Taiwan, defense, rare earths and industrial policy,” said Daniel Russel of the Asia Society Policy Institute.

Daniel Kritenbrink, a former US official now with The Asia Group consultancy, said there’s “no doubt that both leaders would like to see stability in the relationship, at least through the end of the year.”

However, “you’d have to see further tangible outcomes for this truce to extend in the long run.” Some feel Beijing has “largely not lived up to the commitments it made” at earlier meetings, he added, noting many US officials “have articulated their profound frustration with the Chinese.”

Xi and Trump agreed to a trade truce last year during a meeting in South Korea, after a bitter tit-for-tat fight that saw tariffs soar over 100 percent at one point.

As part of the agreement, Beijing agreed to buy more US soybeans and other agriculture products, and to suspend rare earths restrictions for a year.

The pact was originally due to expire in November but both sides agreed this week to extend it until January 10, US Treasury Secretary Scott Bessent said.

Trump’s top trade official Jamieson Greer told CNBC on Friday that Washington views such extensions as “compliance periods.” “I think US officials would say China is doing just barely enough to maintain the agreement and no more,” Kritenbrink said.

“That’s unsustainable over the long run,” he added.

The brief extension “was the preferred position of the Americans,” Mary Lovely of the Peterson Institute for International Economics told AFP.

She added that while Beijing would have preferred a longer rollover, the current situation points to Washington’s anxiety about the delivery of rare earth magnets and how officials “want to keep this on a short leash.”

“It’s not clear anymore how much their threats of high tariffs actually move China,” she said. For now, Greer said that both countries have made “progress” on other economic outcomes and expect to release more details Monday.

“We want to have some subset of goods that we can trade with the Chinese on a more preferential basis,” he said.

He added that both sides have agreed on products that can be left aside in future trade disputes.

Greer is set to host G20 trade ministers in Wisconsin next week, with US tariff threats and the issue of excess capacity -- a key concern surrounding Chinese industry -- expected to be discussed.

Washington and Beijing have also agreed to set up some kind of notification system for artificial intelligence threats between the two countries, Bessent said.

Peter Richardson of Counterpoint Research said the channel could be as simple as a hotline, but it will be tough to define what triggers it.

“It is often very difficult to tell quickly whether an AI incident was state-directed, a rogue actor or an accident,” he said.

“Given the rivalry we don’t expect this to lead to any comprehensive international framework for AI regulation, but it would be the first practical guardrail,” he added.

Kritenbrink, for his part, said the summit has done “nothing to curb the competitive instincts of both sides on AI.”

“I don’t think you’ll see any slowing down.”

The capital market ended the week in the red as investors, who had hoped for monetary easing to boost the bourse, were disappointed by Bangladesh Bank's decision to leave its key policy rate unchanged.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) fell 17 points, or 0.31%, to close at 5,578. The blue-chip DS30 index lost 10 points to settle at 2,112.

Decliners outnumbered gainers, with 190 issues falling, 141 rising and 57 unchanged. Turnover at the DSE dropped 11% to Tk756 crore, indicating weaker participation from both retail and institutional investors.

Brokerage firms cited the central bank's rate decision as the main trigger for the pullback.

In its daily review, Sheltech Brokerage Limited said profit-taking picked up as sentiment weakened following the monetary policy stance. Early buying lifted the DSEX to an intraday high of 5,631, but heavy selling soon took over and pushed the index down to an intraday low of 5,578, near which it closed.

EBL Securities said the market lacked conviction about the sustainability of its recent uptrend. The index held steady in the opening hour, but sustained profit-booking wiped out early gains, and a later rebound attempt was not strong enough to withstand widespread selling.

The market reaction came shortly after Bangladesh Bank decided to hold its policy rate steady at 9.5% at the Monetary Policy Committee (MPC) meeting, chaired by Governor Mostaqur Rahman on 23 September. The central bank opted for a cautious stance to assess the macroeconomic fallout from recent domestic and international shocks, including volatile global energy markets caused by prolonged Middle East conflicts and the government's recent domestic fuel price hike.

While the committee acknowledged a downward trend in headline inflation, consumer price growth remains above the target ceiling of 7.50% for FY27. Furthermore, the committee identified the implementation of a new national pay scale as another potential inflationary headwind, prompting the monetary authority to prioritise price stability and monitor impact on inflation and GDP growth before considering rate cuts.

Banking sector heavyweights led the index downturn, with Pubali Bank, BAT Bangladesh, United Commercial Bank, BRAC Bank, and Eastern Bank emerging as the chief index draggers.

On the sectoral front, General Insurance captured the largest share of daily turnover at 17.8%, followed by Textile at 16.3% and Pharmaceuticals at 13.3%.

Most sectors closed in the red, with Travel and Ceramic both dropping 1.2%, and IT declining 1.1%. On the flip side, Mutual Funds and General Insurance bucked the trend, both posting 2% gains.

GQ Ball Pen emerged as the most-traded stock of the session, followed by IPDC Finance, Fine Foods, Square Pharmaceuticals, and BRAC Bank.

CNA Textile led the gainers' chart with a 10% jump, while Sena Insurance (9.97%), Orion Pharma (9.82%), Tung Hai Knitting (7.69%), and Emerald Oil (7.69%) also posted notable gains.

Conversely, Saiham Textile hit the losers' list hardest, slumping 6.68%, followed by Peoples Leasing, Khan Brothers PP Woven Bag, Premier Cement, and Meghna PET.

Over at the Chittagong Stock Exchange (CSE), performance diverged from the capital bourse. The selective CSCX index gained 17 points to close at 9,147, while the all-share price index, CASPI, jumped 41 points to settle at 14,912.

Banks' consumer finance increased by Tk 53.63 billion, or 3.4 per cent, in the April-June quarter of 2026 from the previous quarter amid subdued demand for private- sector credit.
Consumer finance stood at Tk 1.64 trillion at the end of June, up from Tk 1.58 trillion three months earlier, according to the Bangladesh Bank data.

The quarterly growth, however, slowed from 4.35 per cent in the January-March quarter, when consumer finance rose by Tk 66.0 billion to Tk 1.58 trillion from Tk 1.51 trillion.

Consumer finance accounted for 9.05 per cent of banks' total loans and advances at the end of June, compared with 8.88 per cent three months earlier.

The quarter-on-quarter growth was driven mainly by higher borrowing for TV, fridge, air cooler, computer, furniture, housing, personal loan, marriage loan, credit card, land purchase, and other personal financing.

Loans for consumer goods like TV, fridge, air cooler, computer, and furniture increased to Tk 350.10 billion from Tk 345.36 billion.

Loans for purchasing flats and apartments increased to Tk 372.24 billion in the April-June quarter from Tk 320 billion in the previous quarter.

Credit card loans climbed to Tk 138.77 billion from Tk 135.19 billion, while loans for land purchases increased to Tk 76.88 billion from Tk 71.81 billion.

Financing for motor vehicles and motorcycles also rose to Tk 69.41 billion from Tk 63.74 billion.

Loans for marriage expenses rose to Tk 1.05 billion from Tk 0.94 billion.

Personal loans against DPS, MSS, etc. also increased to Tk 53.56 billion from Tk 50.73 billion.

One of the sharpest increases was recorded in personal loans secured against fixed deposits and other savings instruments, which jumped to Tk 290.28 billion from Tk 276.25 billion.

Doctors' and professional loans edged up to Tk 11.35 billion from Tk 10.63 billion, while loans against provident funds rose to Tk 18.87 billion from Tk 17.50 billion.

The rise came despite continued weakness in overall credit demand as businesses and households remained cautious about taking new loans amid elevated borrowing costs and economic uncertainty.

According to the central bank data, banks' total economic purpose loans and advances stood at Tk 18.09 trillion at the end of June, up from Tk 17.84 trillion in March, indicating a quarterly increase of around Tk 250 billion.

The relatively moderate growth in consumer finance suggests that household borrowing continued to expand during the quarter, although the pace remained below that recorded in the previous quarter.

Bankers say consumer loans are increasingly being used to finance essential spending rather than discretionary purchases as many households seek credit to cover education, healthcare, marriage, travel, and other day-to-day expenses amid persistent inflation and erosion of purchasing power.

They also note that banks have expanded their consumer lending portfolios as demand remains resilient despite relatively high lending rates.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, says rising living costs and persistent inflation are prompting more people to rely on consumer loans to meet everyday expenses.

Banks are also diversifying their loan portfolios by expanding consumer lending as private sector credit growth remained below 5.0 per cent amid weak demand for business loans, he says.

At the same time, lenders have stepped up promotional activities to attract retail borrowers, he also says.

Economists, however, warn that while consumer credit can provide short-term financial relief to households, excessive reliance on borrowing could increase debt burdens and financial vulnerability over time.

They also caution that if a growing share of bank lending continues to flow into consumption rather than productive sectors, it could undermine private investment, employment generation, and long-term economic growth.

Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, says the 3.4 per cent quarterly rise in consumer finance indicates that household credit demand has remained somewhat resilient despite the broader economic slowdown.

However, the growth should not yet be interpreted as a strong recovery in consumer demand as Bangladesh is still dealing with elevated inflation, weak private sector investment, subdued business activity, and pressure on real household incomes, he says.

He says a stronger recovery in consumer finance would depend on sustained disinflation, improvement in real incomes and consumer confidence, and a revival in overall economic activity.

Banks also need to maintain prudent credit assessment so that faster growth in consumer lending does not create additional asset quality risks, he adds.

The government has released Tk10,300 crore in subsidies for liquefied natural gas (LNG) imports in the first three months of the current fiscal year, as Bangladesh has increasingly relied on costly spot-market cargoes after disruptions to long-term supplies amid the Iran-US war and its regional fallout.

The latest Tk3,000 crore tranche was released on 21 September, taking total LNG subsidy disbursement for July-September to Tk10,300 crore, according to Petrobangla figures.

The amount is equivalent to 70.5% of the Tk14,600 crore subsidy spent on LNG imports during the entire FY2025-26. It is also 71.7% higher than the Tk6,000 crore originally allocated for LNG subsidy last fiscal year.

Petrobangla data show that the government has provided about Tk20,900 crore in LNG subsidy since 17 February, when the current government took office, through 21 September.

The rapid rise in subsidy created a widening gap between the cost of imported LNG and the price at which gas is sold domestically.

During July-September, the blended average cost stood at Tk46.40 per cubic metre, against a weighted average sales price of Tk23.90, leaving a gap of Tk22.50 per cubic metre, which is being paid as a subsidy.

LNG subsidy nearly triples to Tk16,600cr amid Iran war supply shock
War pushes Bangladesh into expensive spot market

The subsidy burden began rising sharply following the Iran-US war, which disrupted LNG shipments from the Middle East to Asia and effectively choked the Strait of Hormuz, through which a significant share of global LNG trade normally passes.

QatarEnergy, Bangladesh's largest LNG supplier, declared force majeure while OQT of Oman and Excelerate also followed the suit forcing the Petrobangla to replace contracted cargoes with spot-market purchases to keep gas flowing to power plants, industries and other consumers.

"The Iran war cost us an additional Tk10,600 crore as most long-term suppliers have maintained force majeure since March, forcing us to rely on expensive spot purchases," said AKM Mizanur Rahman, director (finance) of Petrobangla.

The disruption has fundamentally changed Bangladesh's LNG procurement mix.

Before the conflict, the country relied heavily on relatively predictable long-term supplies from Qatar and Oman.

With those supplies disrupted, Petrobangla had to repeatedly go to the spot market, where prices are determined by tight global supply and demand conditions.

The financial pressure has intensified as spot LNG prices have moved far above pre-war levels.

Before the conflict, Bangladesh generally bought spot LNG at around $10-$12 per MMBtu.

By August, some cargoes were being approved at more than $21-$22/MMBtu, while September cargoes were contracted at $24.25-$24.63/MMBtu.

More recent emergency purchases have crossed $26-$28/MMBtu, with some cargoes approaching $30/MMBtu.

Bangladesh has been among the countries seeking supplies from West Africa, Indonesia, North America and other regions as buyers diversify away from disrupted Middle Eastern supply routes.

The government had initially allocated Tk6,000 crore for LNG subsidies in FY2025-26, but the final requirement rose to Tk14,600 crore as the cost of emergency and spot purchases increased.

Subsidy pressure likely to remain

The current subsidy expenditure also highlights the widening mismatch between Bangladesh's LNG import cost and domestic gas pricing.

The per cubic metre blended gas price as of September stands at Tk46.40. But the average weighted sale price during July-September was Tk23.90.

The Tk22.50 per cubic metre gap has to be covered through the government's subsidy support to Petrobangla.

With international LNG prices still elevated and geopolitical risks continuing around the Middle East, the subsidy requirement could remain under pressure in the coming months.

The scale of spending is particularly striking because Tk10,300 crore has been disbursed in only three months – roughly 71% of the entire Tk14,600 crore LNG subsidy bill for FY2025-26.

Last year's subsidy had already risen sharply from the original allocation because of higher import costs and increased reliance on spot purchases.

The latest figures suggest that the fiscal pressure from LNG imports is no longer confined to an exceptional period during the initial supply shock; the higher cost of securing replacement cargoes is continuing into the current fiscal year.

Subsidy history

Petrobangla's data show that the government's LNG import subsidy has increased sharply since Bangladesh began importing LNG.

The subsidy stood at Tk2,500 crore in FY2018-19, rising to Tk3,600 crore in FY2019-20 and then falling to Tk2,400 crore in FY2020-21.

It increased significantly to Tk6,000 crore in FY2021-22, before reaching Tk6,365.12 crore in FY2022-23.

The subsidy stood at Tk6,000 crore in FY2023-24 and then rose to Tk8,900 crore in FY2024-25.

The amount surged further to Tk14,600 crore in FY2025-26.

Overall, the annual LNG subsidy increased by about 143% in just two years, from Tk6,000 crore in FY2023-24 to Tk14,600 crore in FY2025-26.

Supply crisis leaves little room to cut imports

Despite the higher prices, Petrobangla cannot simply reduce LNG imports without risking a further deterioration in gas supply.

Gas-fired power plants remain heavily dependent on imported LNG, while domestic gas production has been declining.

The government has therefore continued procuring cargoes even when spot prices have surged.

In July, Bangladesh imported 11 LNG cargoes, while procurement continued at a high level in August and September.

Officials said most of the cargoes were secured from the spot market to compensate for shortages in long-term and short-term supplies.

As a result, the government has effectively faced a choice between paying substantially more for LNG or reducing imports and risking lower gas supplies to power plants and industries.

Red Sea risks add another layer

The pressure has been compounded by growing security risks around the Bab el-Mandeb Strait, another major maritime chokepoint connecting the Red Sea with the Indian Ocean.

This strait carries 8% to 10% of Qatari LNG.

While the waterway has not been completely shut, vessel traffic has fallen amid renewed attacks and threats linked to the wider Middle East conflict.

The prospect of disruption has raised concerns over longer shipping routes, higher freight costs and tighter availability of energy cargoes.

For Bangladesh, the simultaneous disruption risks around Hormuz and Bab el-Mandeb are particularly significant because the country depends heavily on imported energy, said Petrobangla officials.

Any prolonged disruption can force LNG and other fuel suppliers to use longer routes, increasing freight, insurance and other logistics costs.

The threat around Bab el-Mandeb has added another layer of uncertainty to an LNG market that was already under pressure from the loss of contracted Middle Eastern supplies.

The United Nations' Economic and Financial Committee (Second Committee) is set to discuss Bangladesh's request to defer its least developed country (LDC) graduation by three years on 7 October, with the final decision to be taken by the General Assembly.

The Second Committee will consider recommendations sent by the UN Committee for Development Policy (UNCDP) through the Economic and Social Council (Ecosoc), based on Bangladesh's request for more time to prepare for a sustainable graduation.

According to information on the UN website, the Second Committee's 81st session will run from 1 October to 25 November. The recommendations on Bangladesh and Nepal's requests for a three-year deferral of their LDC graduations are scheduled for discussion at its 7 October meeting.

Bangladesh is currently scheduled to graduate from the LDC category on 24 November.

Officials from the Ministry of Commerce said the Second Committee will send the recommendation adopted at its meeting to the General Assembly for consideration and voting before Bangladesh's graduation date.

Permanent representatives of UN member states will vote for or against the resolution on behalf of their respective countries. According to officials, the decision will take effect if most member states vote in favour.

How will the decision be made?

Mohammad Hafizur Rahman, former director general of the WTO Cell at the Ministry of Commerce, told TBS that the UN Committee for Development Policy had made its recommendation on Bangladesh's request and sent it through Ecosoc to the General Assembly's Second Committee.

"Now the Second Committee will hold its meeting and send the resolution adopted there to the General Assembly. The final decision will be taken there," he said.

Bangladesh has sought a three-year deferral of its graduation timeline, arguing that it needs additional time to prepare for a sustainable transition.

Prime Minister Tarique Rahman has sent a letter to the United Nations requesting the extension.

In response, the UNCDP sent a report to Ecosoc saying Bangladesh had met all three LDC graduation criteria. However, as Bangladesh had requested a deferral, the graduation could be postponed for some time, according to the recommendation.

Ecosoc subsequently sent the UNCDP recommendation to the General Assembly's Second Committee.

Nepal has also requested a three-year deferral of its LDC graduation. Member states will vote on Nepal's request alongside Bangladesh's.

What happens after 7 October?

The Second Committee's role is to consider the recommendation and forward its decision to the General Assembly. The General Assembly will then consider the resolution and take the final decision through a vote by member states.

With Bangladesh's graduation date set for 24 November, the process is expected to be completed before that deadline.

The Bangladesh Jewellers Association (Bajus) has cut gold prices in the domestic market after two consecutive increases, reducing the price of 22-carat gold by Tk1,691 per bhori to Tk2,32,930, including VAT.

Bajus announced the revised prices in a notice issued this morning (26 September). The new rates came into effect at 10am the same day.

According to the notice, the price of pure gold, locally known as tezabi gold, has declined in the local market. Considering the overall market situation, Bajus revised the prices of gold, including VAT.

Under the new rates, a bhori (11.664 grams) of 22-carat gold will cost Tk2,32,930, while 21-carat gold will cost Tk2,22,491 per bhori. The price of 18-carat gold has been set at Tk1,91,056 per bhori, while traditional-method gold will cost Tk1,56,064 per bhori.

Bajus said the revised prices will remain effective at all jewellery shops until further notice. Labour charges will apply separately depending on the design of the jewellery.

As VAT is included in the selling prices of gold and silver jewellery, jewellers cannot collect VAT separately from customers.

The previous Bajus rules will remain applicable to jewellery exchange and purchase after excluding applicable VAT, labour charges and stone costs.

Bajus last adjusted gold prices on 19 September, raising the price of 22-carat gold by Tk1,691 per bhori to Tk234,621, including VAT.

So far this year, Bajus has adjusted gold prices 117 times.

Of these, prices were raised on 58 occasions, reduced on 58 occasions and adjusted once for VAT.

Silver prices have also been reduced in the domestic market. The price of 22-carat silver has been cut by Tk291 per bhori to Tk4,841, including VAT.

The new price of 21-carat silver is Tk4,607 per bhori, while 18-carat silver will cost Tk3,966 and traditional-method silver Tk3,033 per bhori.

Bajus has adjusted silver prices 71 times so far this year, raising them on 36 occasions and reducing them on the remaining 35 occasions.

Bangladesh Parjatan Corporation (BPC) has proposed 60 tourism development projects across the country at an estimated cost of Tk19,090 crore to build new facilities and upgrade infrastructure at potential destinations.

The projects cover the Chattogram Hill Tracts, Cox's Bazar and Chattogram, Sylhet, coastal islands, Rajshahi and northern districts, the Khulna-Sundarbans region, and Dhaka and its surrounding areas.

The proposals include tourism complexes, hotels, eco-friendly facilities, entertainment centres, cable cars, handicraft and heritage tourism facilities, training centres and other visitor amenities.

A tourism master plan prepared by the Bangladesh Tourism Board identified 1,498 tourism spots nationwide to assess and develop the country's tourism potential systematically.

"Of these, 60 development projects, estimated to cost around Tk19,000 crore, have been prioritised and submitted to the Ministry of Civil Aviation and Tourism," BPC Chairman Md Shamimuzzaman said.

The ministry has since sent the proposal to the Planning Ministry for approval, he said.

Shamimuzzaman said the projects would help build infrastructure needed to make Bangladesh's tourism sector more competitive and increase its contribution to the economy.

BPC General Manager (Planning) Md Ziaul Haque Howlader said the projects would not necessarily be financed entirely by the government.

"Some of the projects are planned for government financing, while others will be implemented through public-private partnerships or private investment," he told TBS.

Foreign investors could also be involved in larger projects, while financing arrangements would be determined individually at a later stage, he said.

The proposed investment comes as the government is separately pursuing a PPP-based model for BPC's existing tourism facilities to attract private capital and modernise state-owned properties.

BPC currently operates 53 establishments, including hotels, motels, restaurants, bars, picnic spots and tourist information centres. Officials say most have generated weak financial returns over the years, making major upgrades difficult through government financing alone.

The first major project under the PPP initiative is the proposed redevelopment of Hotel Shaibal in Cox's Bazar into an international-standard integrated tourism complex on nearly 132 acres of government land.

The largest regional allocation is proposed for Chattogram and Cox's Bazar, where nine projects would cost around Tk5,980 crore.

The plans include tourism facilities in the coral island area of Cox's Bazar, Patenga, Cumilla and Sabrang, along with diversified attractions, night-time entertainment and other activities aimed at encouraging longer stays and higher visitor spending.

In the Chattogram Hill Tracts, projects are planned for Kaptai, Bandarban and Rangamati to expand facilities and rehabilitate or redevelop existing attractions, including suspension bridges.

Around Tk3,540 crore has been proposed for tourism development in coastal and island areas, including Taltali in Barguna, Rangabali, Char Bijoy, Amtali, Kuakata, Hatiya, Nijhum Dwip and Manpura.

The projects would add accommodation and other visitor facilities to destinations with tourism potential but limited infrastructure.

BPC has proposed 12 projects in Sylhet at an estimated cost of Tk3,460 crore, including international-standard tourism facilities and tourism complexes.

The broader plan also covers destinations in the Mymensingh region, including Sherpur, Durgapur, Jamalpur and Nalitabari.

Four projects worth around Tk1,720 crore have been proposed for the Khulna-Sundarbans region to expand tourism facilities around the Sundarbans and develop higher-quality accommodation and other infrastructure.

The plans also include five-star hotels and training centres in Bagerhat and Khulna.

Seven projects worth around Tk1,510 crore have been proposed to develop existing and potential tourist destinations and supporting facilities in Rajshahi and the northern districts.

Around Tk2,900 crore has been proposed for tourism infrastructure in Dhaka and surrounding areas.

The plans include multipurpose tourism complexes, cable cars, handicraft centres and heritage-based tourism attractions. A cable car is also proposed at Hatirjheel.

Devise an agreed formula through wider consultations to execute the proposed special exit facility for defaulting borrowers so that viable businesses are not hurt and credit discipline not breached.

Stakeholders and financial experts Saturday made the call at a roundtable as the government is about to launch a crash course to dispose of loads of classified loans the economy is ridden with.

They also stressed the need to distinguish between wilful defaulters and those who defaulted for genuine reasons, strengthen coordination among regulators and financial institutions, ensure reasonable rescheduling where appropriate, and assess loan -recovery cases individually.

The participants further called for stronger enforcement about non-repayment, good governance and fair treatment of borrowers, while bankers emphasised the need for institutional coordination in recovering non-performing loans (NPLs).

They were speaking at a roundtable titled "Special Exit Facility for Classified Loans: Balancing NPL Recovery, Business Sustainability, and Credit Discipline", organised by the International Business Forum of Bangladesh (IBFB) at its conference room in Dhaka.

Dr Shah Md Ahsan Habib, professor at the Bangladesh Institute of Bank Management (BIBM), presented the keynote paper, while IBFB President Lutfunnisa Saudia Khan delivered the opening remarks.

In his keynote, Dr Ahsan said Bangladesh's large stock of classified loans became a problem for both banks and businesses, as uncollected credit ties up bank capital, delays new lending and leaves viable businesses short of working capital.

He said the gross NPL ratio had risen from 9.00 per cent at the end of 2023 to 30.60 per cent at the end of 2025, after peaking at 35.73 per cent in September 2025.

According to the March 2026 Banking-Sector Update cited in the paper, the NPL ratio stood at 32.7 per cent against total loans of about Tk17.84 trillion, implying roughly Tk5.83 trillion in classified loans.

At the end of 2025, gross NPLs stood at Tk5.57 trillion, with Bad/Loss loans accounting for roughly 94 per cent. The reported provision shortfall was Tk1.91 trillion.

Dr Ahsan said the special exit facility, introduced in June this year for Bad/Loss loans, should be assessed against realistic recovery prospects rather than being used simply to reduce the reported NPL ratio.

He has noted that the facility allows a negotiated lump-sum settlement with board approval and specified interest-waiver flexibility and will remain available until December 31, 2026.

However, most of the discussions at the event focused on how the facility should be implemented and how loan recovery could be made more effective.

Former BIBM director- general Dr Toufic Ahmad Choudhury said "political commitment from the government is necessary to recover classified loans".

He stressed the importance of distinguishing between wilful and unwilful defaulters and suggested that cases should be examined individually rather than applying a blanket approach.

His comments came amid growing concern over the size of classified loans and the effectiveness of existing recovery mechanisms.

Dr Abu Yusuf, economist and professor at the University of Dhaka's Department of Development Studies, raised the issue of enforcement against borrowers who fail to repay their loans.

He questioned how the authorities and financial institutions could ensure effective recovery "in cases where borrowers did not meet their repayment obligations".

Prof Md Mamun Habib, professor at Independent University, Bangladesh, emphasised the importance of good governance and fair practices in implementing the exit facility for the defaulters.

He stressed that any settlement mechanism should be applied "transparently and consistently so that the facility does not create unfair advantages for particular borrowers".

A representative of Pubali Bank PLC referred to the Money-lending Act 1832, and stressed the need for reasonable rescheduling of loans where borrowers have the capacity to continue their businesses and repay their obligations.

The point reflected a broader concern at the discussion that a one-time settlement may not always be the most suitable option for a viable business facing temporary liquidity constraints.

Dr Ahsan's paper also distinguishes between exit settlement and restructuring, noting that a viable business without sufficient lump-sum cash may require monitored restructuring rather than a one-time settlement.

Md Khairul Anam Mohiuddin, executive vice-president of Southeast Bank PLC, and Syed Abu Naser Bukhtear Ahmed, chairman of Agrani Bank PLC, shared their views on loan recovery and institutional coordination.

They emphasised the need for coordination among Bangladesh Bank, the Ministry of Finance and other relevant stakeholders to address the recovery of classified loans.

The discussion also highlighted the practical difficulties faced when borrowers have exposures with multiple banks and financial institutions.

Ali Reza Iftekhar, adviser of Bank Asia PLC, stressed consulting stakeholders before issuing such a major regulatory circular.

He called for engagement with banks, businesses and other concerned parties so that practical challenges can be identified before implementation.

The participants broadly agreed that wider consultation would help identify implementation difficulties and make major regulatory measures more effective.

IBFB President Lutfunnisa Saudia Khan, in her opening remarks, stressed constructive dialogue among policymakers, banks, businesses and other stakeholders.

The discussion also focused on the need to balance recovery of bad loans with the survival of businesses that remain commercially viable.

Dr Ahsan's paper notes that a lump-sum settlement could free a business from an unserviceable legacy debt but could also consume the cash required for inventory, suppliers, wages and taxes. It recommends that businesses assess their liquidity before committing to a settlement.

Business community's concerns: Business leaders at the event also highlighted the importance of maintaining access to finance for viable enterprises.

Humayun Rashid, managing director and CEO of Energypac Power Generation Ltd, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Saumitra Kumar Mutsuddi, head of BSRM, Khadem Mahmud Yusuf, managing director and CEO of Bangladesh Petrochemical Company Ltd (BPCL), and Engr Utpal Kumar Das, managing director of Protec Electronics Ltd, participated in the discussion.

Banking-sector representatives included Kazi Mahmood Sattar, chairman of IDLC, Mohammad Jamal Uddin Mazumder, additional managing director of Islami Bank Bangladesh PLC, Mohammad Firoz Alam, chief risk officer of City Bank PLC, and Ali Reza Iftekhar of Bank Asia.

Dr Md Ezazul Islam, director -general of BIBM, also attended the event.

Apex Footwear has decided to raise up to Tk500 crore by issuing redeemable preference shares to refinance its existing loans and reduce debt burdens.

The company's board of directors approved the decision during a board meeting held on Saturday evening (26 September), according to a price sensitive information (PSI).

The issuance of preference shares remains subject to approval from the company's shareholders and the Bangladesh Securities and Exchange Commission (BSEC).

The board recommended a total 30% dividend for the financial year ended 30 June 2026. The package comprises 15% cash (Tk1.50 per share of Tk10 face value) and 15% stock (15 bonus shares for every 100 existing shares).

The company reported a profit growth for the year under review. Its earnings per share (EPS) increased to Tk7.91 for FY2025-26, up from Tk6.90 in the previous financial year.

Its restated Net Asset Value (NAV) per share rose to Tk355.25 as of 30 June 2026, compared to Tk349.35 in the corresponding period of 2025.

However, cash flows took a significant hit. The company reported a net operating cash flow per share (NOCFPS) of minus Tk90.97, down sharply from a positive Tk45.19 recorded in FY2024-25.

To seek shareholder approval for the recommended dividends, share issuance, and charter amendments, Apex Footwear has scheduled its annual general meeting (AGM) for 29 November.

The record date for determining eligible shareholders for the dividend and AGM participation has been fixed for 15 October.

Asian shares were trading mixed in early Thursday trading, as investors tried to digest the recent swings in oil prices and the U.S. bond market.

Japan's benchmark Nikkei 225 gained 1.3% in morning trading to 65,883.41, as some chipmakers got a boost from the recent interest in artificial intelligence. Australia's S&P/ASX 200 fell 0.7% to 8,700.50.

Hong Kong's Hang Seng lost 0.5% to 24,715.95, while the Shanghai Composite dipped 0.8% to 3,902.33. Trading was closed in South Korea for the Chuseok autumn harvest holiday.

In energy trading, benchmark U.S. crude fell 0.82% to $91.40 a barrel. Brent crude, the international standard, lost 0.83% to $102.22 a barrel.

The price for a barrel of Brent remains much higher than the roughly $72 it cost before the war with Iran began and worries are running high that the war with Iran will keep oil bottled up in the Middle East for a long time. Talks are continuing with mediators between U.S. and Iranian officials, but nothing concrete has come from it yet.

Overnight, Wall Street got hit by pressure from the U.S. bond market after a surprisingly strong report on the economy raised worries about inflation.

The S&P 500 fell 0.8% after finishing the prior day just 0.4% below its record set last month. The Dow Jones Industrial Average dropped 352 points, or 0.7%, while the Nasdaq composite sank 1.1% from its own all-time high.

The yield on the 10-year Treasury jumped to 5.10% from 4.96%, a considerable move for the bond market. High yields undercut prices for stocks and other investments, while also slowing the economy by making it more expensive for everyone to borrow money.

Wednesday's jump briefly sent the 10-year yield near 5.14%, back to where it was in 2007 before the global financial crisis caused yields to crater. Yields have accelerated recently because of worries about high inflation, the U.S. government's heavy debt and other concerns.

Worries about inflation got a jolt after a preliminary report suggested growth in U.S. business activity surged to its strongest level in more than five years.

U.S. inflation has remained so stubbornly high that the Federal Reserve raised its short-term interest rate last week for the first time in three years. Fed Gov. Michael Barr said in a speech this week that further hikes "are likely to be needed" to get inflation to the Fed's 2% target.

Although the Bank of Japan recently raised its benchmark interest rate to stem the slide in the Japanese yen, the move was largely figured in for weeks. And so the yen hasn't really bounced back. A weak yen works as a negative for oil-importing Japan when oil prices are soaring.

In currency trading, the U.S. dollar edged down to 157.94 Japanese yen from 158.30 yen. The euro cost $1.1382, little changed from $1.1388.

All told, the S&P 500 fell 58.61 points to 7,706.03. The Dow dropped 352.10 to 51,511.59, and the Nasdaq composite sank 308.24 to 26,936.04.

Bangladesh's ready-made garment (RMG) exports to the United Kingdom reached $915.63 million during the first two months (July-August) of fiscal year 2026-27, registering a 3.74 percent year-on-year growth driven primarily by a strong rebound in August.

During the corresponding July-August period of the previous fiscal year (FY2025-26), RMG exports to the UK market stood at $882.62 million, according to data from the Export Promotion Bureau (EPB) compiled by trade research platform Bangladesh Apparel Voice.

The cumulative earnings of $915.63 million in the first two months already account for 20.86 percent of the total $4,388.55 million earned from garment exports to the UK across the entire FY2025-26.

The monthly export average so far in FY2026-27 stands at $457.82 million, running significantly ahead of the flat monthly average benchmark of $365.71 million recorded in the full FY2025-26.

However, the positive trajectory was driven almost entirely by a robust 10.53 percent surge in August, which effectively offset a 2.44 percent year-on-year drop recorded in July.

Mohiuddin Rubel, Founder & CEO of Bangladesh Apparel Voice, highlighted that August's strong recovery successfully lifted overall apparel exports to the UK market out of negative territory following a sluggish start in the first month of the fiscal year.

Bangladesh Bank (BB) has extended the deadline for raw jute exporters to apply for loan restructuring facilities, allowing distressed exporters additional time to regularise their classified loans.

Under a new directive issued to managing directors and chief executive officers of all scheduled banks, the facility will cover loans classified as Sub-standard (SS), Doubtful (DF) and Bad/Loss (B/L) as of September 30, 2026, BSS reports.

Exporters seeking the facility will have to submit applications to their respective banks by September 30, 2026, along with a 2 percent down payment of the total outstanding loan amount.

The central bank has also extended the deadline for banks to settle and dispose of applications received under the facility until December 31, 2026.

The latest decision effectively gives raw jute exporters additional time to address financial difficulties and regularise their accounts amid sector-specific operational and financial complexities.

The directive was issued under Section 45 of the Bank Company Act, 1991, with reference to coordination with the Financial Institutions Division of the Ministry of Finance.

The central bank said the provisions of BRPD Circular No. 21 issued on October 13, 2021; BRPD Circular No. 27 issued on July 7, 2022; and BRPD Circular No. 06 issued on February 22, 2023 will continue to apply, with all other terms and conditions remaining unchanged.

China said on Saturday it had agreed with the US on a $30 billion reciprocal tariff-reduction arrangement and on launching a dialogue on AI, under an eight-point consensus reached during President Xi Jinping's visit to Washington.

The two sides have also agreed to set up a trade council and extend the outcomes of earlier talks in Kuala Lumpur, the Chinese foreign ministry said.

The agreement follows an earlier move by the world's two largest economies to extend by two months a trade truce that had been due to expire on Nov 10, allowing more time to work on a potentially bigger trade deal, US Treasury Secretary Scott Bessent said on Wednesday, reports Reuters.

The three-day summit between Xi and President Donald Trump, which ended on Friday, showcased personal diplomacy rather than big public breakthroughs. Xi has since landed in Beijing, Chinese state news agency Xinhua reported on Saturday.

"This historic visit enriched the constructive and stable China-US relationship, upheld the overall stability of bilateral ties, opened a new chapter in China-US relations, and will have a far-reaching impact on world peace and development," Chinese Foreign Minister Wang Yi said in a statement.

Dialogue on AI

On artificial intelligence, the two sides agreed to hold a dialogue on the technology's risks and benefits, with the next round of discussions set for November, and to set up a communication channel for AI-related incidents, the Chinese foreign ministry said.

The ministry also said in a separate statement that Beijing valued Washington's use of the term "super intelligence" in place of "artificial intelligence". As AI technology continues to advance, the two sides should step up exchanges and work towards consensus in line with new developments, it said.

The two sides also agreed to support each other in hosting the Asia-Pacific Economic Cooperation leaders' meeting and the G20 summit, with both leaders planning to attend the gatherings hosted by the other.

On foreign policy, the leaders agreed that Iran should fulfil its commitment not to develop nuclear weapons, and that no country or entity should impose transit tolls on international waterways, the ministry said.

The US Embassy in Beijing did not immediately respond to a Reuters request for comment.

Bangladesh's salt industry is increasingly disrupted by erratic weather linked to climate change, with heavy rainfall, prolonged cloudy conditions, and extreme heat affecting production in the country's coastal salt fields.

Salt cultivation depends heavily on temperature, humidity, and wind conditions during the dry season. Intense heat between April and May allows farmers to harvest salt within four to nine days.

The impact was particularly severe in FY26, when adverse weather caused salt production to fall 28% below the target. The shortfall has pushed wholesale raw salt prices up 50% year-on-year, prompting the Bangladesh Small and Cottage Industries Corporation (Bscic) to recommend importing 150,000 tonnes of raw salt.

Production fluctuating

Bscic data covering 66 years show that the sector once regularly produced more than domestic demand.

In FY72, production reached 637,000 tonnes against a demand of 388,000 tonnes, achieving 164.18% of the target. Some 20,225 farmers cultivated 26,288 acres, producing 24.24 tonnes per acre.

The highest amount of land under salt cultivation was recorded in FY2006, when 70,050 acres produced 1.575 million tonnes against a target of 1.17 million tonnes.

However, the sector later faced losses and shrinking cultivable land. Large infrastructure projects, including power plants, a deep-sea port and fuel facilities, were developed in Moheshkhali and surrounding areas of Cox's Bazar, the country's main salt-producing region.

Nearly 4,000 acres of salt-producing land in Moheshkhali alone were lost to infrastructure development. The number of salt farmers fell from 44,574 in FY06 to 27,697 in FY21.

The sector made a major recovery in FY24, producing 2.438 million tonnes against demand of 2.528 million tonnes on 68,505 acres. Productivity reached 35.59 tonnes per acre, the highest production recorded in 62 years.

But production has declined since then.

In FY25, farmers produced 2.251 million tonnes on 69,198 acres, with productivity falling to 32.54 tonnes per acre.

In FY26, production dropped further to 1.945 million tonnes on 67,757 acres. Productivity fell to 28.70 tonnes per acre, while the target achievement rate stood at only 71.63%.

"Bscic is working to expand cultivable land and develop the salt industry," said Zafar Iqbal Bhuiyan, deputy general manager of the organisation's salt industry development office.

Through 12 salt centres in Cox's Bazar and Chattogram's Banshkhali, Bscic provides farmers with training, loans, technological support and other assistance, he said.

According to a Bscic report, the FY26 salt production season lasted 203 days, from 12 November 2025 to 25 May 2026.

Farmers could not work in the fields due to adverse weather.

The situation became particularly damaging after 26 April, when continuous heavy rain affected salt fields in Chattogram and Cox's Bazar.

This came at a critical time because extreme heat normally allows farmers to harvest salt within four to nine days, compared with around 14 days under normal conditions.

Weather-related disruptions were also recorded in previous seasons. Production was halted for 14 of 201 days in FY22, 19 of 202 days in FY23, 19 of 184 days in FY24 and 16 of 187 days in FY25.

Syed Mostafa Sadik Rizvi, a salt farmer in Moheshkhali, told TBS that he produced around 1,500 maunds of salt from two acres of land during the latest season.

"Despite favourable temperatures, we had to harvest the salt 15-20 days earlier because of rain," he said.

"If the weather had remained favourable, we could have produced 100-150 maunds of salt per kani of land during that period," he added.

Raw salt price rises 50%

The production shortfall has pushed up raw salt prices.

According to Bscic's latest report, raw salt is currently selling at Tk380 per maund, or 40kg, compared with Tk253 a year earlier.

The price has therefore increased by Tk127 per maund, or 50%.

"Production has declined this year because of adverse weather, creating a supply shortfall," said Nurul Kabir, president of the Bangladesh Salt Mill Owners Association.

"The shortage and demand have pushed up salt prices towards the end of the season. The government has taken an initiative to import salt. We hope the situation will remain stable," he told this newspaper.

BSCIC estimates annual salt demand at 2.2-2.5 million tonnes. Processing and iodisation of raw salt result in system losses of 17%-20%.

Demand for iodised edible salt exceeds 800,000 tonnes a year, while industrial demand is around 1 million tonnes.

Around 500,000 tonnes of sulphate and dry sodium sulphate are imported annually for industrial use. These are used in industries including ready-made garments, textiles, detergents and glass manufacturing.

Different forms of salt are required to produce around 120 types of products in Bangladesh, while domestic salt is also used by the leather industry.

Import plan to prevent shortage

The country consumes around 200,000 tonnes of salt a month.

As of 12 September, total stocks of raw salt, including old and new stocks, stood at 526,000 tonnes, while mills held around 150,000 tonnes.

Bscic officials said the existing stock would be insufficient to meet demand until the new production season gets fully underway.

Bangladesh has been importing raw salt for years when necessary to maintain supply. Outside industrial imports, the country last imported 150,000 tonnes of raw salt in FY24.

Bscic officials said import announcements are often made around September and October, when salt prices tend to rise, and concerns over stockpiling emerge. Such announcements also discourage mill owners from creating artificial shortages and raising prices.

Following a meeting this month, the industries ministry recommended importing 150,000 tonnes of salt based on Bscic's demand and stock projections. The proposal is awaiting approval from the commerce ministry.

Sarwar Alam, chief of Bscic's salt cell and general manager of the corporation, said production remains very low at the beginning of the season despite salt cultivation starting in November.

"According to our projections, existing stocks will last until November. But a shortage will emerge from the first week of December," he told TBS.

"If demand is high at the beginning of the season, farmers may harvest immature salt from the fields. This reduces quality and increases system losses," he said.

"These factors have been considered in recommending the import," he added.

Bangladesh and Kuwait have discussed expanding manpower exports, trade and investment as the two countries seek to deepen economic cooperation.
Prime Minister Tarique Rahman and Kuwait’s Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah held a bilateral meeting at Kuwait’s Permanent Mission in New York on Friday, on the sidelines of the 81st session of the United Nations General Assembly (UNGA).

The two leaders exchanged views on ways to strengthen economic ties, with a focus on increasing manpower exports, expanding bilateral trade and investment, and broadening cooperation in areas of mutual interest.

Mr Rahman emphasised the need to enhance high-level engagement between the political leaderships of the two countries to advance their longstanding relationship and explore new avenues of economic cooperation.

He also highlighted the historical friendship between Bangladesh and Kuwait, recalling the contributions of former president Ziaur Rahman and former prime minister Khaleda Zia to developing bilateral relations.

The prime minister said the foundation of mutual respect, goodwill and cooperation between the two countries had continued to expand over the years.

He stressed the importance of deepening and diversifying the relationship for the mutual benefit of the peoples of both countries.

The two leaders also discussed regional and international issues and underscored the need to maintain regular communication and coordination on matters of mutual interest.

They expressed their commitment to further strengthening bilateral cooperation for the benefit of the peoples of Bangladesh and Kuwait.

Bangladesh Bank’s board of directors has agreed to grant initial approval to five digital banks, paving the way for the central bank to issue Letters of Intent (LoIs) to the proposed lenders.
The banks will be able start online operations after completing the necessary formalities following the issuance of the LoIs.

The decision was made at a meeting of the central bank’s board of directors held on Thursday, chaired by Governor Md Mostaqur Rahman.

The digital banks that received initial approval are Digital Banking of Bhutan, sponsored by Bhutan’s DK Bank; bKash Digital Bank, sponsored by the shareholders of bKash; Nova Digital Bank, backed by VION, the parent company of Banglalink, and Square Group; and Boost Digital Bank, sponsored by Axiata Limited, the parent company of Robi.

The board also decided to issue an LoI to Kori Digital Bank, which had already received initial approval earlier.

Bangladesh Bank invited applications for setting up digital banks during the tenure of the interim government. A total of 13 entities submitted applications.

The applicants included leading business groups, microfinance institutions, mobile network operators and mobile financial service (MFS) providers.

The central bank accepted applications for digital bank licences from September 1 to November 2, 2025.

However, the approvals could not be granted during the interim government’s tenure amid various issues, including protests by Bangladesh Bank officials.

The latest board decision will allow the approved entities to proceed with the next stage of the licensing process before launching their digital banking operations.

Bangladesh’s local mobile handset industry is under fresh pressure from rising prices of memory components, adding to longstanding problems such as grey-market competition, weak factory utilisation and uncertainty over regulatory enforcement.

Prices of key smartphone components, particularly RAM and ROM, have risen sharply this year, raising production costs for local manufacturers and threatening to make budget smartphones more expensive.

At the same time, local handset production is declining as manufacturers struggle to compete with unofficial imports and operate their factories at full capacity.

Industry players say effective enforcement of the National Equipment Identity Register (NEIR), along with stable tax and regulatory policies, is crucial to restoring competitiveness.

“The biggest challenge today is the global surge in component costs,” said Ziauddin Chowdhury, country general manager of Xiaomi Technologies Bangladesh. He said rising memory-chip prices, driven partly by the rapid expansion of artificial intelligence technologies, were putting “significant pressure on the affordability of entry-level and budget segments”.

Gartner estimates that combined DRAM and solid-state drive prices could rise 130 percent by the end of 2026 from 2025 levels, potentially increasing smartphone prices by 13 percent.

Rezwanul Hoque, CEO of Ismartu Technology BD Ltd, said memory prices had risen 70 percent since January and could climb another 40 percent over the next three months.

Jakaria Shahid, president at the Mobile Phone Industry Owners’ Association of Bangladesh (MIOB), said global memory supplies were very tight, pushing up prices in the unofficial market as well.

The higher component costs come as local production is already losing momentum.

BTRC data show smartphone production fell 9.9 percent year-on-year to 53.76 lakh units in January-August 2026 from 59.66 lakh a year earlier. Feature-phone production dropped 9.6 percent to 85.66 lakh units from 94.73 lakh.

Local manufacturers produced about 2.44 crore handsets in 2025, down from roughly 2.73 crore in 2024.

The Daily Star spoke to half a dozen manufacturers’ officials, who said their factories were operating at less than half capacity. One manufacturer with more than 10 production lines has half of them idle, while monthly output has fallen to around 100,000 units from a capacity of 300,000.

GREY MARKET UNDERMINES LOCAL INDUSTRY

Industry estimates suggest the grey market accounts for more than 60 percent of handset sales, putting local manufacturers at a disadvantage and reducing government tax revenue.

Mohammad Saifuddin Khan, director of operations at Excel Telecom, which manufactures Samsung handsets in Bangladesh, said legal manufacturers were being forced to compete with products that did not bear the same tax and regulatory costs.

The National Equipment Identity Register (NEIR), which uses handsets’ IMEI numbers to identify unauthorised, cloned and illegally imported devices, began enforcement on January 1 this year.

Manufacturers say effective NEIR enforcement could redirect demand towards official channels and help local factories operate at higher capacity.

However, the feature of NEIR that could block such illegal phones has not yet become fully operational. Meanwhile, the rollout has also faced resistance from mobile-phone traders.

Rehan Asif Asad, adviser to the prime minister on posts, telecommunications and ICT, has said the government wants to strengthen the electronics manufacturing ecosystem while ensuring that consumers, retailers and manufacturers are not adversely affected.

SCALE REMAINS A CHALLENGE

Bangladesh’s handset manufacturers remain heavily dependent on imported components, including memory, processors and displays, leaving them with limited control over production costs.

“The major 60 to 70 percent portion of the component cost is controlled by a handful of three or four companies,” said Saifuddin.

More than half of Bangladesh’s smartphone market is concentrated in the Tk 15,000-Tk 20,000 range, according to industry estimates, making higher component prices particularly significant for consumers.

Manufacturers say higher production volumes could reduce per-unit costs by spreading fixed expenses across more units. But weak demand and grey-market competition have made it difficult to achieve the scale needed to improve efficiency and factory utilisation.

Fair Electronics, whic used to manufacture mobile phones, plans to resume handset production in the second half of this year.

Mohammed Mesbah Uddin, CMO of Fair Group, said the company would initially produce selected models. They did not expect to immediately return to its previous scale of around 15 lakh handsets a year -- which they used to make back in 203, when its mobile operation employed 2,000-2,500 people.

POLICY STABILITY SOUGHT

Manufacturers are also seeking greater certainty over taxes, duties and incentives.

The handset manufacturing sector expanded after tax incentives were introduced in fiscal 2017-18, with around 17 factories established since then. However, industry players say changes in taxes and duties have increased uncertainty over investment.

The government has recently taken steps to reduce production costs. In the FY2026-27 budget, it reduced advance income tax on imports of 22 raw materials used in local mobile-phone manufacturing to 1 percent. Existing duty exemptions on raw materials and components, along with conditional VAT exemptions, were extended until June 2030.

Ziauddin welcomed the extension but stressed the importance of policy continuity.

“Incentives attract investment, but it is policy stability that retains it,” he said, arguing that major policies supporting the industry should ideally have a minimum five-year horizon.

Manufacturers say effective implementation is equally important, as bureaucratic complexities sometimes prevent them from fully benefiting from government measures.