Investor activity on the Dhaka Stock Exchange (DSE) surged last week, with average daily turnover jumping 42% despite persistent macroeconomic headwinds, a fuel price hike and disappointment over the unchanged policy rate.

Average daily turnover at the country's premier bourse rose to Tk785 crore from the previous week's sluggish level. The benchmark DSEX gained 46 points, or 0.83%, to close at 5,578, while the blue-chip DS30 advanced 10 points to 2,112.

Market breadth was positive, with 252 issues advancing, 105 declining and 29 remaining unchanged. However, total market capitalisation fell by Tk1,800 crore over the week.

Sheltech Brokerage Limited, in its weekly market commentary, said trading was marked by a tug-of-war between selective bargain hunting and profit-taking amid mixed investor sentiment.

Buying interest early in the week was supported by Moody's revision of Bangladesh's economic outlook from negative to stable and reports of improved national gas supply. Expectations of fiscal year-end earnings and dividend declarations by June-closing companies also provided momentum.

The rally came under pressure mid-week after the government raised domestic fuel prices amid continued geopolitical tensions between the US and Iran. Sentiment weakened further towards the weekend after Bangladesh Bank kept its policy interest rate unchanged, disappointing investors who had expected monetary easing.

Sheltech analysts said investors will closely watch whether the renewed buying momentum broadens across sectors. Near-term market drivers include regulatory progress on the Bangladesh Securities and Exchange Commission's (BSEC) proposed market development initiatives, developments in the Middle East and corporate financial results for the June-ending fiscal year.

Square Pharmaceuticals, Orion Pharma, LafargeHolcim Bangladesh, Orion Infusion and Unique Hotel were the biggest contributors to the DSEX's gain.

Textile stocks accounted for the largest share of turnover at 20.50%, followed by Insurance at 17.20%, Pharmaceuticals and Chemicals at 13.23%, Mutual Funds at 8.89% and Banks at 8.25%.

Mutual Funds recorded the highest sectoral return, rising 6.12%, followed by Paper and Printing at 4.18%, General Insurance at 3.82% and Life Insurance at 3.14%. Engineering fell 0.83%, Food and Allied 0.60% and Banking 0.56%.

Eastern Bank, Sharp Industries, Square Pharmaceuticals, IPDC Finance and Saiham Textile were among the most-traded stocks during the week.

First Prime Finance Mutual Fund topped the gainers, surging 50%, followed by ICB AMCL Second Mutual Fund with a 33.33% rise. Desh General Insurance gained 30.46%, Orion Infusion 23.02%, and Orion Pharma 19.84%.

Walton led the weekly losers, falling 12.95%, while Anlyma Yarn, Exim Bank First Mutual Fund, Bay Leasing and Al-Haj Textile declined between 6.40% and 6.76%.

The Chittagong Stock Exchange also ended the week higher, with the selective CSCX index gaining 1.39% to 9,147 and the all-share CASPI advancing 1.19% to 14,912.

Textile companies dominated the Dhaka Stock Exchange (DSE) turnover chart in the first half of September, with three firms each recording more than Tk200 crore in share trades, according to the bourse's fortnightly report.

Sharp Industries, a B-category company, topped the turnover chart among the DSE's top 20 stocks, followed by A-category Malek Spinning Mills and Envoy Textile. B-category Saiham Textile and Saiham Cotton Mills, and A-category Paramount Textile also ranked among the top turnover generators.

Sharp Industries recorded Tk245.86 crore in trading value, accounting for around 4% of the DSE's total turnover during the period. It also topped the volume chart, with 12.04 crore shares changing hands, or 5.44% of all traded shares.

Malek Spinning Mills recorded Tk213.62 crore in turnover, followed by Envoy Textile at Tk208.27 crore, Saiham Textile at Tk201.24 crore, Saiham Cotton Mills at Tk190.05 crore and Paramount Textile at Tk159.57 crore.

During the 11 trading sessions through 15 September, total DSE turnover stood at Tk6,382.80 crore, with average daily turnover at Tk580.25 crore.

The benchmark DSEX index fell 125.62 points to close at 5,598 on 15 September.

In terms of share prices, Bangladesh National Insurance emerged as the top gainer, with its share price rising 29.84% to Tk138.80 from Tk106.90 at the start of September.

It was followed by Phoenix Finance First Mutual Fund, up 28.68% to Tk17.50; Exim Bank First Mutual Fund, up 25.42% to Tk7.40; Mercantile Islami Insurance, up 24.75% to Tk50.40; and AIBL First Mutual Fund, up 22.92% to Tk5.90.

Sharp Industries, despite leading turnover, suffered the biggest decline among the top 20 stocks, with its share price falling 23.43% to Tk18.30.

Information Services Ltd followed with a 23.12% decline to Tk42.90, while Orion Infusion fell 19.72% to Tk176.70.

Rancon Motor Bikes Ltd, the authorised manufacturer and exclusive country distributor of Suzuki motorcycles in Bangladesh, has signed an agreement as part of its proposed public listing.

Under the deal, Lion City Advisory Limited (LCAL) will serve as adviser, while CBC Capital and Equity Management Limited will act as issue manager, according to a press release.

The agreement was signed at Rangs Babylonia in Tejgaon, Dhaka on Wednesday.

According to sources involved in the issue management, Rancon Motor Bikes may apply for listing under the direct listing process. It would be the first sole two-wheeler maker in the capital market to go public.

Earlier, Runner Automobiles was listed to expand its business, which includes manufacturing motorcycles and three-wheelers.

Rancon Motor Bikes Managing Director Romo Rouf Chowdhury and Lion City Advisory Limited Executive Director Ershad Hossain signed the agreement on behalf of their respective organisations.

Under the agreement, LCAL will provide corporate and capital market advisory services to Rancon Motor Bikes, while CBC Capital and Equity Management Limited will act as issue manager for the proposed listing.

Rancon Motor Bikes senior officials Ahsan Hakim, Farhana Karim, Imran Zaman Khan and Abu Jafar Siddique attended the signing ceremony.

Abdullah Al Faisal and other officials represented Lion City Advisory Limited, while Rabiul Hossain represented CBC Capital and Equity Management Limited.

The proposed listing will mark a step in the company's efforts to access Bangladesh's capital market and broaden its participation in the country's capital market ecosystem.

Lion City Advisory provides corporate advisory services to companies in Bangladesh and abroad.

According to data from City Lion Advisory, Suzuki branded two-wheelers become the market leader in the country with around 20% market shares until June 2026. Of the total 40,514 motorcycle sales, Suzuki branded motorcycles sold 8,215.

The government will procure 1.55 lakh tonnes of non-urea fertiliser from Canada, Russia and Saudi Arabia to ensure adequate supplies for the Boro rice season, the country’s principal crop.

The Cabinet Committee on Government Purchase (CCGP) yesterday approved four separate proposals under government-to-government (G2G) arrangements and state-level agreements.

The approval comes amid concerns over fertiliser supplies after farmers in several parts of the country recently protested over shortages during the ongoing rainfed Aman season, the second-largest rice crop.

Of the total, 80,000 tonnes of muriate of potash (MOP) fertiliser will be imported from the Canadian Commercial Corporation (CCC) under an agreement between CCC and the Bangladesh Agricultural Development Corporation (BADC). The price per tonne will be $383.80.

Under a state-level agreement between Russia’s JSC Foreign Economic Corporation (Prodintorg) and BADC, the government will import 35,000 tonnes of MOP fertiliser at $383.80 per tonne.

A separate state-level agreement has been approved for the import of 40,000 tonnes of diammonium phosphate (DAP) fertiliser from Saudi Arabia’s MA’ADEN at $885 per tonne, at a total cost of Tk 437 crore.

Separately, in earlier procurement decisions, the government had approved the Agriculture Ministry’s plan to buy 35,000 tonnes of MOP from Russia under a state-to-state contract at $383.80 per tonne.

It had also approved the import of 40,000 tonnes of DAP from Morocco under a state-to-state arrangement. The Bangladesh Agricultural Development Corporation will import the MOP and DAP.

In another earlier decision, the high-powered committee had approved the purchase of 40,000 tonnes of granular urea from Saudi Arabia at $396.66 per tonne.

Biman Bangladesh Airlines has signed an agreement with Boeing to purchase 11 additional aircraft, the US aircraft manufacturer announced early Thursday (Wednesday afternoon New York time).

The signing ceremony was held on the sidelines of the 81st United Nations General Assembly (UNGA) in New York.

The national flag carrier has placed an order for 11 787 Dreamliner and 737 MAX aircraft to expand and modernise its fleet, according to a Boeing press release.

In a separate release on Thursday morning, Biman said that the airline has signed a supplemental agreement with Boeing to purchase 11 additional aircraft, building on its earlier order for 14 planes.

The new purchase includes five 787-10 Dreamliners and six 737-8 jets. It follows Biman's largest-ever aircraft order earlier this year, when it agreed to purchase 14 Boeing aircraft worth $3.7 billion.

Rumee A Hossain, chairman of the Biman Bangladesh Airlines board of directors, and Brad McMullen, Boeing's senior vice president of Commercial Sales and Marketing, signed the agreement on behalf of their respective organisations.

Government leaders attending the event included Civil Aviation and Tourism Minister M Rashiduzzaman Millat, State Minister for Foreign Affairs Humaiun Kobir, Bangladesh Investment Development Authority (BIDA) Chairman Chowdhury Ashik Mahmud Bin Harun, Prime Minister's Adviser Mahdi Amin, US Secretary of Commerce Howard Lutnick and US Deputy Secretary of State Christopher Landau.

The latest agreement marks another major step in Biman's fleet expansion programme, amid continued competition between US aircraft manufacturer Boeing and European aerospace giant Airbus for a larger share of the national carrier's future fleet.

The previous agreement signed on 30 April for 14 aircraft, comprising eight 787-10 Dreamliners, two 787-9s and four 737-8s.

With the latest agreement, Biman's planned Boeing acquisitions have increased to 25 aircraft.

Biman is also pursuing a separate proposed acquisition of 10 Airbus aircraft — four A350-900 widebody jets and six A321neo narrowbody aircraft.

If both packages proceed, the national carrier's planned aircraft acquisition pipeline would reach 35 aircraft — 25 from Boeing and 10 from Airbus — compared with its current fleet of 19 aircraft.

The Boeing-Airbus competition has drawn particular attention as Bangladesh seeks to expand and modernise Biman's fleet while maintaining aviation and commercial ties with both the United States and Europe.

The April Boeing order was the largest aircraft purchase in Biman's history. It includes the airline's first 787-10 Dreamliners and 737 MAX aircraft, with deliveries scheduled between 2031 and 2035.

"Today's supplemental agreement is an important step in Biman's ongoing fleet renewal and network expansion. This order responds to specific requirements in our fleet plan. Our team's working relationship with Boeing over the years has given us confidence in the delivery and support arrangements," said Rumee A Hossain, chairman of Biman Bangladesh Airlines.

"As the national flag carrier, we remain committed to developing Biman's network and capabilities in a manner that responds to the connectivity needs of the people of Bangladesh, our expatriate community, business and tourism. This agreement is one part of a broader, carefully considered plan to strengthen the country's international connectivity in the years ahead," he added.

Biman currently operates Boeing 787, 777 and 737 Next-Generation aircraft across its international network, connecting Bangladesh with major hubs in the Middle East, South and Southeast Asia, and Europe.

According to Boeing, the 787 Dreamliner and 737 MAX families offer 20-25% greater fuel efficiency than the aircraft they replace, supporting Biman's strategy to modernise its fleet and expand global connectivity.

"Biman's follow-on order reflects its strategic approach to fleet renewal and capacity growth, and underscores the strength of our long-standing partnership," said Brad McMullen, Boeing's senior vice president of Commercial Sales and Marketing.

"These additional 787 Dreamliner and 737 MAX airplanes will deliver the efficiency, versatility and reliability Biman needs to support Bangladesh's growing role in global aviation."

Boeing said the addition of the 737-8 and 787-10 would strengthen Biman's existing Boeing fleet and ensure operational commonality.

The 737-8 offers greater range for the airline's single-aisle network, while the 787-10 provides higher capacity to complement Biman's existing 787-9 and 787-8 aircraft.

The Asian Development Bank (ADB) has approved a $200 million loan to help Bangladesh modernise and strengthen its electricity distribution network in fast-growing industrial and urban areas around Dhaka.

The project aims to improve the reliability, efficiency and resilience of electricity supply for businesses and households, according to an ADB statement yesterday.

Under the Power Distribution Network Enhancement Project, the Bangladesh Rural Electrification Board (BREB) will upgrade distribution infrastructure across 13 Palli Bidyut Samities serving rapidly growing industrial and urban areas around the capital.

The project will install 1,150 megavolt-amperes (MVA) of new transformer capacity across 52 substations and increase the capacity of 12 existing substations by 115 MVA.

It will also construct or upgrade more than 2,600 kilometres of overhead and underground distribution lines and install insulated conductors to improve network reliability, efficiency and safety. Another 900 fault locator sets will be deployed to speed up fault detection and service restoration.

The project will also build river-crossing transmission structures and switching stations to modernise system operations.

“This project will help future-proof the power system in key growth corridors around Dhaka through advanced technologies, stronger infrastructure, and enhanced resilience measures,” said ADB Country Director for Bangladesh Qingfeng Zhang.

The ADB loan is part of a broader financing package for the project. The government will provide about $108 million in cofinancing, while BREB will contribute about $141 million. The Republic of Korea’s e-Asia and Knowledge Partnership Fund will provide a $1 million technical assistance grant.

Oil prices extended declines on Wednesday as investors eyed improved Gulf supply after Saudi Arabia restarted operations at a critical pipeline. Hopes for a diplomatic solution to the US-Iran war also weighed on prices.

Brent crude futures fell $1.09, or 1.1 percent, to $98.16 a barrel as of 0421 GMT while West Texas Intermediate futures fell $1.50, or 1.67 percent, to $89.01 per barrel. Both contracts have declined for six consecutive sessions to around two-week lows.

While US President Donald Trump warned on Tuesday that he could "annihilate" Iran, he also said his envoys Steve Witkoff and Jared Kushner had held productive talks with mediators of Iran to end the war.

"I think there's a lot of momentum for them to make a deal," Trump said.

Optimism around improved supply and a push to end the nearly seven-month conflict drove benchmark Brent down to close below $100 a barrel on Tuesday for the first time since September 8.

“The market is currently feeling more constructive about the global oil supply picture than it was a few weeks ago,” said Tim Waterer, chief analyst at KCM Trade.

“The meeting of US and Iranian delegations in New York has given traders a glimmer of hope ... Despite the continued tough rhetoric, including threats of ‘annihilation,’ the market is choosing to price in the possibility of talks.”

On Tuesday, Saudi Arabia restarted operations on its East-West Pipeline to the Red Sea, three sources briefed on the matter said, with signs of an increase in Middle Eastern oil flows.

Drone attacks, which Saudi Arabia has blamed on Iraqi militia, forced the kingdom to shut the pipeline on September 11, halting crude loadings at the kingdom's Yanbu port.

Since the US-Israeli war on Iran disrupted oil flows from Saudi Arabia and its Gulf neighbours through the Strait of Hormuz, Riyadh has been using the pipeline to reroute around 4 million barrels per day — around 4 percent of global supply — to Yanbu.

Saudi on Tuesday also offered more barrels to Asian refiners for lifting from locations outside of the Strait of Hormuz.

Iraq, too, is increasing oil exports, its oil minister, Basim Mohammed, said on Tuesday. The country is exporting more than 3 million bpd, he said, and expects to boost exports via Turkey to more than 600,000 bpd.

Provisional data from shiptracking firms Vortexa and Kpler pegged Iraqi crude exports in August at 2.3 million and 2.17 million bpd, respectively, up from July's level but below February's pre-war level of 3.7 million and 3.362 million bpd.

Adding to downward pressure on oil prices, industry data showed US crude inventories rose by 1.8 million barrels in the week to September 18. Analysts polled by Reuters had expected a decline.

Official weekly inventory figures from the US Energy Information Administration are due at 10:30 a.m. ET (1430 GMT).

Economic growth has remained “resilient” in many countries despite the war in the Middle East, the OECD said Wednesday as it slightly raised its GDP forecasts for the year.

Global economic growth is now seen at 2.9 percent, a 0.1-point increase from estimates in June by the Paris-based group of 38 industrialised countries.

Even though energy prices have soared since the United States and Israel launched strikes against Iran last February, the OECD noted that “broader financial conditions remain supportive”, as seen in rising equity markets and continued access to credit.

“Sizeable oil inventories, additional supply from outside the Gulf economies and discretionary government support measures all helped to cushion the impact on the global economy,” the group said in its quarterly update.

It also cited the massive investments in artificial intelligence and the resulting boost to production and trade, which could result in “stronger growth than projected”.

But global growth has slowed sharply from the 3.4 percent chalked up last year, and the group trimmed its 2027 growth forecast by 0.1 percentage point, to three percent.

Governments have started raising interest rates to contain inflation pressures stemming from high oil and gas prices, which have sent diesel and other fuel costs to highs not seen in years.

That has sent government bond yields to levels not seen since the global financial crisis of 2007-2008, pushing up borrowing costs even as countries worldwide grapple with high debt and deficits.

“Rising bond yields underline more than ever the need for enhanced efforts to contain and reallocate government spending, improve public-sector efficiency and strengthen revenues to ensure longer-term debt sustainability and maintain the ability of governments to react to significant shocks,” the OECD said.

It also warned of prolonged inflation if the Mideast war continues, with price increases in the G20 group of developing and emerging economies seen at 4.1 percent overall this year.

“Other significant downside risks include potential weather-related supply shocks, including a very strong El Nino, that adversely impact agricultural production and add to rising food price pressures,” it said.

For the United States, it expects GDP to expand 2.2 percent this year, up 0.2 points from its June forecast, while the eurozone could see growth of one percent, also up 0.2 points.

Japan’s growth is now seen at 0.8 percent, up 0.2 points, while the forecast for the Chinese economy, the world’s second largest, was held steady at 4.5 percent.

For the G20, the OECD sees growth of 3.1 percent.

Bangladesh Bank has decided to keep its policy interest rate unchanged at 9.5% to closely monitor the economic impacts of recent domestic and international shocks, including volatile global energy prices and a domestic fuel price hike.

The decision was taken at the 14th meeting of the Monetary Policy Committee (MPC) held at the central bank's head office in Dhaka today (23 September), chaired by Bangladesh Bank Governor Mostaqur Rahman.

At the meeting, the MPC reviewed recent domestic and global macroeconomic developments and noted a downward trend in headline inflation. However, inflation remains above the government's target ceiling of 7.50% for fiscal year 2026-27.

The committee identified several risks that could put renewed pressure on inflation. These include prolonged conflicts in the Middle East, which have kept global energy markets volatile, as well as the government's recent increase in domestic fuel prices.

The implementation of a new national pay scale could also add to inflationary pressures, according to the MPC.

Against this backdrop, the central bank opted for a cautious approach, deciding to assess how the domestic and international shocks affect Bangladesh's economy before making any changes to the existing policy rate.

The MPC will particularly monitor their impact on gross domestic product growth and consumer price inflation.

The meeting was attended by MPC members, including Deputy Governor Dr Habibur Rahman, economist Dr Mustafa Kamal Mujeri, BIDS Director General Dr AK Enamul Haque, Dhaka University Economics Department Chairperson Dr Firdousi Naher and MPD Executive Director Dr Imam Abu Sayed.

The National Board of Revenue's (NBR) intelligence wing has detected the possible import and illicit marketing of around 363 tonnes of cigarette filter-making raw materials in the name of a non-existent trading firm, potentially putting around Tk 2,450 crore in government revenue at risk.

The Central Intelligence Cell (CIC) of the NBR has also found information on imports of cigarette raw materials in the names of four other non-existent firms.

Officials said letters have been sent to the respective banks seeking details of their import transactions and bank accounts.

Recently, the CIC seized a consignment of 48 tonnes of acetate tow, a raw material used in making cigarette filters, which was awaiting clearance at Chattogram’s custom house.

The consignment was imported by Unique Traders of Motijheel on August 18. However, customs officials found that the firm did not exist at its stated address during a field inspection.

The clearing and forwarding agent, Faiz Trading Company Ltd, has ensured payment of Tk 16.44 crore in import-stage duties and taxes for clearance of the consignment.

According to a CIC calculation, the same raw material could have generated around Tk 324 crore in revenue if it had been used to manufacture cigarettes locally.

Import documents show that Unique Traders imported a total of 363 tonnes of cigarette raw materials during the 2025-26 fiscal year. The CIC is now investigating the actual use of the materials and their supply chain.

“Under the gazette issued on August 24, no trading firm is allowed to import cigarette raw materials. As Unique Traders imported the consignment before the gazette was issued, it was technically eligible for clearance. But we seized it after receiving information about the firm and the consignment,” a CIC official told The Daily Star, requesting anonymity.

“As no importer came forward, the C&F agent contacted us and paid the applicable import-stage revenue,” the official said.

He said the firm has also been asked to provide details of where the 363 tonnes of raw materials cleared in the past were sold and pay VAT on those sales.

“Who used and is using these raw materials is now being investigated,” he added.

In a field inspection report submitted on August 19, Munawar Mursaleen, deputy director of the Customs, Excise and VAT Commissionerate, Motijheel, said that the firm did not exist at its stated address.

“Although the firm submitted returns for the last two tax periods, it did not show any sales in those returns,” he said in the report.

According to a CIC press release, valuation documents submitted by two cigarette manufacturers show that around 8,937 sticks of cigarettes can be produced from one kilogramme of acetate tow.

On that basis, the 48,143 kilogrammes of acetate tow in the seized consignment could produce around 43.02 crore sticks, or about 4.30 crore packets, assuming 10 sticks per packet.

The CIC said that if the cigarettes were from the medium segment, with a retail price of Tk 92 per packet and applicable VAT and supplementary duty accounting for around 82 percent of the retail price, the government could have collected around Tk 324 crore in revenue.

For high-segment cigarettes, assuming a retail price of Tk 160 per packet, the potential revenue would be around Tk 564 crore, it said.

Similar findings in earlier investigation

Importing cigarette raw materials in the names of non-existent firms to evade VAT and manufacture illicit cigarettes is not a new phenomenon.

On June 1, 2024, The Daily Star published an investigative report titled “Councillor's illegal cigarette trade” on the issue.

Following the report, an investigation committee was formed with Mohammad Fakhrul Alam, then director general of the Directorate of Customs Intelligence and Investigation, as its head.

The committee, comprising officials from Customs Intelligence and the CIC, submitted its report in December that year after several months of investigation.

The report found that a syndicate was importing cigarette raw materials in the names of at least 20 trading firms and using them to manufacture counterfeit cigarettes. Eleven of those firms were identified as non-existent.

The committee recommended banning imports of cigarette raw materials by all entities except VAT-registered cigarette and bidi manufacturers.

Although the government subsequently doubled the import duty on cigarette raw materials for trading firms, it failed to completely prevent such imports and the production of illicit cigarettes.

Finally, through a gazette issued on August 24 this year, the government restricted the import of cigarette raw materials to cigarette and bidi manufacturing companies only.

For Bangladesh, where rising temperatures are increasingly threatening the health and productivity of garment workers, a new heat stress management toolkit from the American Apparel and Footwear Association (AAFA) offers manufacturers and global brands a framework to address heat risks in factories.

The toolkit, launched at Cascale’s Annual Meeting 2026 in Athens, Greece, recently, aims to help manufacturers and brands manage heat stress in workplaces.

Rising temperatures are making it difficult for workers to cope with heat generated by heavy machinery, particularly in factories with inadequate cooling systems and ventilation and unhealthy working environments.

The AAFA recommends setting maximum thresholds for workplace heat and implementing structural measures to prevent or reduce heat stress.

It also suggests adjusting workloads, water and bathroom breaks according to heat conditions, and establishing heat stress education and medical monitoring programmes to help workers, supervisors and health staff identify and prevent heat-related illnesses.

The association further recommends regular discussions between buyers and suppliers to reduce heat stress and share responsibility for its impact on workers, suppliers and buyers during extreme heat days.

“As extreme heat becomes an increasingly common reality worldwide, our industry must act to protect the workers who are at the heart of our supply chains,” said AAFA Executive Vice President Nate Herman in an AAFA statement.

Brands and manufacturers should share responsibility for the investments and potential disruption involved in building resilience, creating the commercial conditions needed to protect workers, the AAFA said.

The risks of extreme heat in Bangladesh are exacerbated by the country’s high-humidity climate, labour-intensive economy and limited financial capacity for adaptation, according to a study by Climate Rights International (CRI) referred to by the AAFA.

A recent study by the Global Labor Institute at Cornell University found that, over the past two decades, 17 of 23 apparel production centres studied recorded increases of more than 10 percent in the average number of days with temperatures of 35°C (95°F) or more.

A separate Cornell study, released on September 21, found that heat stress was associated with an average 4.1 percent loss in working-time productivity across eight garment factories studied in Bangladesh.

Addressing high heat stress across Bangladesh’s apparel export industry would require an estimated $239 million in capital expenditure, equivalent to 0.2 percent of 2025 apparel export revenue if spread over three years, the study said.

Global Labor Institute says that Dhaka experienced a seven-month heat-stress season in 2025, describing it as “the new norm.”

Back in 2020, an estimated 70 million workers in Bangladesh were exposed to excessive heat on the job, a 51 percent increase over the previous 20 years, according to CRI, citing International Labour Organization (ILO) calculations.

Heat-related labour losses in Bangladesh were also more than two-and-a-half times the global average as of 2020.

Without adequate adaptation measures, Bangladesh is projected to lose 4.84 percent of working hours by 2030 due to heat stress, equivalent to 3.8 million full-time jobs, according to research cited by CRI.

The ILO estimated that excessive workplace heat is linked to 18,970 deaths and 22.85 million occupational injuries.

The ILO has described heat stress as “an invisible killer” because it can cause sudden and severe illnesses, such as heatstroke, as well as chronic and debilitating diseases affecting the cardiovascular and respiratory systems and kidneys.

Md Towhidur Rahman, president of Bangladesh Apparel Workers Federation, said he was not aware of the AAFA’s heat stress toolkit yet, but his organisation has been conducting training on heat and other just transition-related issues for workers over the last few years.

Because climate change has been causing floods, droughts, stagnation and water-borne diseases, workers are directly affected and are victims, and the issue must be jointly addressed by international retailers and brands along with local manufacturers, Towhidur said.

Mahmud Hasan Khan, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the AAFA had not sent any letter to the BGMEA officially yet, although many individual factories had received such instructions from their buyers.

Heat stress in the workplace during certain seasons, especially in summer in Bangladesh, is a health risk for workers as temperatures rise, he said.

The Bangladeshi Taka has strengthened significantly against the Indian rupee over the past two years, gaining around 11.6 percent in value against the Indian currency, including a 7.6 percent gain over the past year compared to September 22, 2025.

According to exchange-rate data, Tk 1 was equivalent to around ?0.781 on September 22, 2026, compared to about ?0.726 on September 22, 2025 and around ?0.700 on September 22, 2024.

This means that the Taka gained around 5.5 Indian paisa against the rupee during the one-year period, raising its purchasing power against the Indian currency by approximately 7.6 percent.

In terms of the reverse exchange rate, one Indian rupee was worth around Tk 1.281 on September 22, 2026, compared to Tk 1.3782 a year earlier. Thus, the amount of Taka required buying one Indian rupee declined by around Tk 0.0972, or about 7.1 percent, over the year.

On September 22, 2024, one Indian rupee was worth Tk1.4292. Against that level, the Taka has gained approximately 11.6 percent against the Indian currency over the past two years.

The year-on-year movement is therefore particularly notable, as the Taka's value increased from around ?0.726 per Taka on September 22, 2025 to around ?0.781 on September 22, 2026, representing a gain of approximately 7.6 percent.

The latest Bangladesh Bank data also indicate continued strength of the Taka against the Indian rupee in the foreign-exchange market.

Bangladesh Bank reported an INR cross rate of Tk 1.2789 to Tk 1.2796 per Indian rupee on September 21, 2026, equivalent to roughly ?0.781 to ?0.782 per Taka.

The exchange-rate movement means that one Indian rupee now buys fewer Taka than it did a year earlier, while one Taka buys more Indian rupees.

Talking to BSS, Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan said the strengthening of the Taka against the Indian rupee could have a positive impact on Bangladesh-India economic and trade relations, particularly by reducing the local-currency cost of imports from India.

He said a stronger Taka means Bangladeshi importers may need to spend comparatively fewer Taka to purchase the same amount of Indian goods and services, provided other factors, including international prices, transportation costs and trade-related charges, remain unchanged.

“This development can help reduce the Taka cost of Indian goods and services for Bangladeshi importers. It can also lower the local-currency cost of expenses for Bangladeshis travelling to India,” he said.

For Bangladesh-India trade, Arif Hossain Khan said the movement of the exchange rate could influence the overall local-currency cost of imports from India.

If the Taka remains relatively stronger against the Indian rupee, importers may benefit from a lower Taka requirement for settling payments denominated in Indian currency, he added

He said the exchange-rate movement could also provide some relief to businesses importing raw materials, industrial inputs, machinery and other products from India, as the currency component of their import costs may become relatively lower.

At the same time, he noted that the actual impact on market prices would depend on several other factors, including the prices of imported commodities, freight and logistics costs, tariffs and taxes, and the pricing decisions of importers and traders.

The Bangladesh Bank spokesperson said the exchange rate is one of the factors influencing the cost of cross-border trade, and movements in the Taka-rupee rate should therefore be viewed in the broader context of bilateral trade and foreign-exchange market developments.

He also said a stronger Taka against the Indian rupee could benefit Bangladeshi travelers to India by reducing the Taka equivalent of expenses such as accommodation, food, transportation and other local payments, depending on prevailing market rates.

However, he stressed that exchange-rate movements alone do not determine the final prices of imported goods or the overall cost of travelling abroad, as other domestic and international market factors also play a role.

Arif Hossain Khan said Bangladesh Bank continues to monitor developments in the foreign-exchange market and exchange-rate movements to maintain stability and support an orderly foreign-exchange market.

The cost of migrating to Saudi Arabia, the largest destination for Bangladeshi workers, has risen further after the fee for the mandatory Skill Verification Programme (SVP), widely known as Taqamul, was increased to $85 from $50 in early September.

The increase comes despite Bangladesh's efforts to reduce the testing fee, adding to costs migrant workers already bear for visas, medical tests, training and other procedures.

While employers were initially expected to pay the SVP fee, workers are now paying it themselves, according to sector insiders.

The additional cost is particularly significant for cleaners, load-unloaders and other low-skilled workers, who account for nearly 80% of Bangladesh's Saudi-bound employment, according to the Bureau of Manpower, Employment and Training (BMET).

On the matter, State Minister for Expatriates' Welfare and Overseas Employment Nurul Haque Nur told TBS, "Since the Saudi side is conducting the examination, we have limited scope to intervene in the matter."

"Saudi Arabia has always given special consideration to Bangladesh, and a large number of Bangladeshi workers go there. So, if the fee has been increased to some extent based on their requirements, we should look at the matter accordingly, particularly because Saudi Arabia is providing significant employment opportunities for our workers," he added.

TBS contacted the Saudi Embassy in Dhaka and emailed it on 16 September seeking its response on the fee increase, as instructed by the embassy. However, it had not responded by the time the report was filed.

Around 447,572 aspiring migrant workers had taken the SVP test as of 16 September, since its introduction in mid-2023, paying more than Tk273 crore to the Taqamul authority. Of them, 122,909, or more than 27%, failed the test. Workers who fail and retake it must pay the fee again.

The rising costs are particularly concerning as wages for many low-skilled Bangladeshi workers in Saudi Arabia have remained unchanged for the past three years despite the mandatory SVP, labour recruiters said.

Recruiting agencies estimate that additional charges introduced in recent months, including Taqamul, have added Tk11,064-Tk14,470 to an individual worker's costs, on top of migration expenses that can already reach Tk3.5-5 lakh.

The financial burden continues after arrival.

According to sector insiders, workers can also face Iqama-related expenses of around 9,700-11,000 Saudi riyals, although such employment-related costs are generally supposed to be borne by employers. An Iqama is a residence permit issued to foreign nationals, serving as both a work permit and identification card.

Workers unable to meet the expenses risk falling into undocumented status.

While Taqamul was introduced to ensure workers have the skills required by the Saudi labour market, industry representatives question whether mandatory certification is justified for jobs such as cleaning and loading and unloading.

Yesterday, several former leaders of the Bangladesh Association of International Recruiting Agencies (Baira) submitted a four-point memorandum to the expatriates' ministry.

Their demands include withdrawing the mandatory skill test for workers in the cleaner and general labour categories.

They also called for the immediate cancellation of the recent Tk2,000 increase in the Wage Earners' Welfare Board fee per worker. On 20 September, the ministry raised the fee from Tk3,500 to Tk5,500, further increasing the cost of migration.

Fee rose despite Bangladesh seeking a reduction

On 24 November last year, former expatriates' welfare secretary Neyamat Ullah Bhuiyan held a meeting with officials of Taqamul Holding in Riyadh.

He told them the $50 test fee and $50 retake fee were an additional burden on financially constrained Bangladeshi workers and requested a reduction or waiver.

Senior Taqamul official Adel Al-Furaidi said the proposal would be considered but stressed that the certificate was mandatory. About a year later, the fee rose 70% to $85.

Muhammad Abdul Quader, proprietor of Quader Associates, said the fee could rise further.

"Now they have increased the rate to $85 from $50. The way it goes, they would increase it gradually to $100 and then more," he said.

He said a Saudi employer had also questioned why Bangladesh remained silent over a test that was increasing workers' migration costs. "It is totally unnecessary to verify unskilled workers through a certification process," Quader said.

Meanwhile, TTC sources claimed that of the previous $50 fee, $13 went to the BMET and $37 to Saudi Arabia. When asked about the current breakdown of the $85 fee, officials were unable to clarify.

Low-paid workers paying more

The extra testing cost has not translated into higher wages, according to recruiting agencies. Low-skilled workers such as cleaners and construction workers generally earn Tk25,000-Tk30,000 a month, while semi-skilled workers earn around Tk40,000.

Jahangir Alam, who is seeking a hospital cleaner's job in Saudi Arabia, paid $85 for the mandatory test in early September but failed. Six other workers taking the test through the same agency also failed. He passed on his second attempt after paying the same fee again.

"I am going abroad for a salary of 800 Saudi riyals (over Tk26,000). I have had to borrow money and take out loans to cover my migration costs of Tk3.5 lakh," he told TBS.

Baira former joint secretary-general Fakhrul Islam also questioned the need for a computer-based test for cleaners, general labourers and helpers. "Many of them do not have specific technical skills. Yet they have to sit for a computer-based test," he said.

"If the skill test resulted in higher wages, there would be some justification. But their salaries have not increased. Cleaners and general workers earn 800-1,000 riyals, while semi-skilled workers get around 1,200-1,300 riyals. So what benefit are they getting?"

Shakirul Islam, chairman of the grassroots migrant-rights organization Ovibashi Karmi Unnayan Program (Okup), said, "Skill verification has turned into a lucrative business. On paper, authorities claim that skilled workers are going abroad. In reality, I have spoken to many loading and unloading workers who migrated without any skill upgrades."

"As migration costs continue to rise, it only deepens the exploitation of our workers," he added.

Bangladesh sent 533,885 workers abroad until 15 September this year, with 294,093, or more than 55%, going to Saudi Arabia.

Saudi Arabia currently hosts more than 32 lakh Bangladeshis, according to an unofficial estimate. It is also Bangladesh's largest source of remittances, with inflows from the country rising to $5.84 billion in FY2025-26 from $4.26 billion in the previous fiscal year.

Training costs add to the burden

To help workers prepare for the Taqamul examination, selected government technical training centres offer a three-day preparatory course for Tk2,000.

By comparison, three-month technical courses in electrical, automobile and computer technology at government TTCs cost around Tk748, according to sector insiders.

Asked why workers are charged the preparatory course when technical courses at government TTCs cost less than half that amount, BMET Additional Director General (Training) Md Sharifuzzaman told TBS, "The fee for each course is determined based on its necessity. I am new here, so I will look into whether there are any abnormalities."

Saudi Arabia initially introduced the SVP in Bangladesh for skilled trades such as plumbing, electrical work, welding, refrigeration and automobile electrical work. The programme was later expanded to 73 occupations, including cleaning and loading-unloading jobs.

In mid-2025, the Saudi Embassy in Dhaka stopped issuing visas to cleaners and load-unloaders without SVP certificates.

Taqamul is not the only additional cost for Saudi-bound workers. Saudi Arabia launched a separate visa-processing system in mid-2023, requiring Bangladeshi workers to visit the Tasheer centre at Jamuna Future Park for biometric procedures.

Tasheer, formerly known as Tasheel or VFS Tasheel, is the official global visa service centre appointed by the Saudi Ministry of Foreign Affairs. Industry insiders said fingerprinting costs around Tk694, while a premium service costs about Tk2,100.

Bangladesh’s recent easing of inflation may prove short-lived, with higher fuel prices, the new public-sector pay scale, energy shortages, and persistent supply-side problems threatening to keep price pressures elevated.

The Asian Development Bank (ADB) yesterday raised its inflation forecast for Bangladesh to 9 percent for FY2026-27, from 8.8 percent projected in July, placing the country among the highest-inflation economies in Developing Asia and the Pacific region.

The forecast comes at a difficult moment for the economy, with diesel prices recently increased, a new public-sector pay scale taking effect, and global energy markets remaining volatile amid prolonged tensions in the Middle East.

Economists argue that Bangladesh’s inflation problem runs deeper than external shocks, with policy measures failing to fully rein in prices.

The Bangladesh Bank’s Monetary Policy Committee, however, yesterday decided to keep the policy rate unchanged at 9.5 percent, saying it wanted to assess the impact of domestic and global shocks before making any further move. The policy rate is the central bank’s key interest rate and is used to influence borrowing, spending and inflation.

Bangladesh’s point-to-point inflation fell to 8.26 percent in August from 8.32 percent a month earlier, according to the Bangladesh Bureau of Statistics. The rate, however, remains well above the government’s FY27 target of 7.5 percent.

The ADB now expects Bangladesh to record the fourth-highest inflation rate among 43 developing economies in Asia and the Pacific, behind only Turkey, Myanmar and Kazakhstan.

In South Asia, Pakistan is next at 8.3 percent, while India’s inflation is projected at 4 percent.

The immediate concern is the transmission of the recent fuel price hike through the wider economy.

The government raised the prices of diesel, petrol, octane and kerosene by Tk 20 a litre effective September 21. Diesel, widely used in freight transport, public transport, irrigation and industry, rose 17.4 percent to Tk 135 a litre.

The ADB, in the latest Asian Development Outlook, said higher energy and shipping costs were already feeding into domestic prices through more expensive imports.

It also identified energy shortages, higher transport costs and potential shipping disruptions as major sources of inflationary pressure.

“Rising global energy and shipping costs have transmitted directly into Bangladesh’s domestic market via elevated import prices,” the lender said.

The impact of the fuel adjustment is likely to spread well beyond filling stations, as higher diesel costs raise freight, irrigation and production expenses and ultimately the cost of moving goods from producers to consumers.

The central bank’s Monetary Policy Committee also flagged the risk. In its latest meeting, it noted that international energy prices remain volatile amid the prolonged Middle East conflict.

The new fuel prices and implementation of the new pay scale could add to inflationary pressure, it added.

That leaves policymakers with a difficult trade-off, according to Zahid Hussain, former lead economist at the World Bank’s Dhaka office.

“There is no painless option,” he said.

Keeping fuel prices unchanged would have meant allowing Bangladesh Petroleum Corporation (BPC) to absorb mounting losses, Zahid said.

Financing those losses through bank borrowing would put further pressure on the banking system, while government subsidies would strain already tight public finances, he said.

At the same time, if BPC cannot finance fuel imports and open letters of credit, the resulting supply disruption could itself push prices up sharply, the economist added.

POLICY ‘NOT TIGHT ENOUGH’

Zahid said external shocks alone do not explain why inflation has remained elevated in Bangladesh for so long.

The Russia-Ukraine war, global energy-price shocks and other disruptions affected economies across the world, but many of them saw inflation rise sharply and then ease, he said.

Bangladesh’s problem is that the transmission of those shocks has been amplified by domestic policy and supply-side weaknesses.

From an inflation-control perspective, neither monetary nor fiscal policy has been as restrictive in practice as it appears on paper, Zahid said.

Although the policy rate has remained high, Bangladesh Bank has simultaneously provided liquidity support, expanded refinancing schemes and introduced other measures that have softened the impact of monetary tightening, he explained.

“So what we call a tight anti-inflationary policy is actually either accommodating or even expansionary,” he said.

Fiscal policy can also add to inflation. Even without a large budget deficit, higher government spending at a time of high inflation can put further upward pressure on prices, he said.

Supply-side weaknesses provide another major source of pressure.

Zahid pointed to weak market regulation, market manipulation and the costs imposed by informal payments, such as extortion, throughout supply chains.

Such costs effectively function as an additional “tax on goods” and can rise alongside general prices, he said.

The ADB also mentioned the policy issue, saying a gradually less restrictive monetary policy stance and expanded liquidity support are expected to add upward pressure on prices.

It added that weak economic activity and sluggish credit growth would help limit inflationary pressure driven by consumer demand.

The report further warned that the outlook faces significant downside risks.

A prolonged Middle East conflict, higher oil prices, further shipping disruptions, tighter trade restrictions and continued exchange-rate pressure could further weaken growth and keep inflation elevated.

GROWTH OUTLOOK WEAKENS

The ADB has also cut Bangladesh’s growth forecast for FY27 to 4 percent from 4.5 percent projected in July.

The lender said persistent banking-sector stress, severe energy shortages, structural bottlenecks and weak investment would constrain the recovery.

High non-performing loans, weak bank balance sheets, elevated borrowing costs and banks’ preference for safer government securities are limiting credit to the private sector, it said.

Unreliable energy supplies, logistics constraints and lengthy regulatory procedures are further weighing on investment, reducing the economy’s ability to respond to either monetary easing or fiscal support.

Industrial growth is projected to slow to 3.3 percent in FY27 as energy shortages, higher production costs, weak external demand and uncertainty weigh on manufacturing and private investment.

Agriculture also faces risks from adverse weather and limited fertiliser availability.

“The downgrade for FY2027 reflects trade headwinds, energy import volatility and weather-related disruptions impacting agriculture and output across South Asia,” the ADB said.

The services sector is expected to remain comparatively resilient, growing 4.7 percent, supported by remittance inflows and a modest recovery in domestic activity.

“The economy is beginning to recover, but the recovery remains vulnerable to external shocks and domestic constraints,” said ADB Country Director Qingfeng Zhang.

He called for faster reforms in macroeconomic management, the financial sector, energy security and the business environment to revive private investment and create jobs.

Bangladesh's central bank has introduced a new framework allowing eligible cross-border trade payments to be settled in taka through Non-Resident Taka, or vostro, accounts maintained by authorised dealer (AD) banks for correspondent banks in trading partner countries.

Vostro accounts are not new. Under the existing system, AD banks could open taka vostro accounts for their overseas branches and correspondent banks against inward remittances in freely convertible foreign currencies.

The new arrangement changes how these accounts can be funded and used. Eligible import payments can now create taka balances in vostro accounts without an initial inward remittance in a freely convertible currency. These balances can then be used to settle eligible export payments and for other permitted purposes.

So, how will the new taka settlement framework work? Here are the key terms and the process in simple terms.

What is a vostro account?

In simple terms, it means a foreign bank can keep a taka account with a Bangladeshi bank and use the money in that account to make or receive payments related to trade with Bangladesh. For example, suppose a bank in India maintains a taka account with a Bangladeshi bank. For the Bangladeshi bank, it is a 'vostro' account. The word 'vostro' is Latin for "yours", meaning "your account with us".

The foreign bank owns the money, but the account is maintained by the Bangladeshi bank. Bangladesh Bank's guidance describes a vostro account as an account maintained by a domestic bank in the name of a foreign bank, overseas branch or correspondent bank to facilitate local-currency transactions and settlements.

What is a correspondent bank?

A correspondent bank is a bank that provides banking services to another bank, particularly when the latter does not have its own banking presence in a country. For example, a UK bank may not have a branch in Bangladesh. It can maintain a relationship with a Bangladeshi bank, which can hold its taka account and process eligible payments on its behalf.

In this arrangement, the Bangladeshi bank acts as the correspondent bank.

So, in simple terms, a correspondent bank is a local bank that helps a foreign bank conduct banking and payment transactions in a country where it does not have its own full banking presence.

What is an authorised dealer, or AD, bank?

An authorised dealer (AD) bank is a bank authorised by Bangladesh Bank to conduct foreign-exchange transactions. The new framework says these AD banks can maintain Non-Resident Taka vostro accounts for correspondent banks in trading partner countries.

How will a trade payment work?

Suppose a Bangladeshi company exports garments to a US buyer worth $1 million. The new arrangement does not mean that the exporter and importer have to rewrite the contract in taka. The letter of credit (LC), contract and invoice can continue to be denominated in US dollars or another freely convertible or admissible currency.

But when the payment is settled through the taka vostro account, the invoiced amount will be converted into taka at the prevailing exchange rate.

For example, if the applicable exchange rate is $1 = Tk120, a $1 million invoice would be settled at its taka equivalent of Tk12 crore.

What happens if money is left in the vostro account?

This is another important part of the new arrangement. Suppose a foreign bank has Tk50 crore in its taka vostro account. After making eligible payments, Tk10 crore remains. That Tk10 crore is the surplus balance.

Bangladesh Bank now allows such surplus taka, subject to prevailing regulations, to be used for certain permitted investments in Bangladesh. These include: foreign direct investment (FDI), foreign portfolio investment (FPI), alternative investment funds, open-end mutual funds.

Will exporters lose their foreign-currency facility if they are paid in taka?

No. Bangladesh Bank says exporters receiving proceeds in taka under this arrangement will remain eligible for foreign-currency retention facilities, where applicable. This is important because exporters may need foreign currency to pay for imported inputs or repay eligible Export Development Fund (EDF) loans.

What is a nostro account?

Nostro is essentially the opposite perspective of vostro. If a Bangladeshi bank keeps a foreign-currency account with a bank in another country, that is its nostro account – Latin for "ours", meaning "our account with you".

For example, if a Bangladeshi bank keeps a US-dollar account with a US bank, the Bangladeshi bank calls it its nostro account.

What is the benefit of the new system?

The main change is that Bangladesh is creating another route for settling eligible international trade transactions.

Instead of requiring every trade payment to be settled through a foreign currency such as the US dollar, suitable trading partners can use a taka-based mechanism through vostro accounts.

This could make cross-border settlement more flexible and increase the use of taka in bilateral trade.

The ability to use surplus taka for permitted investment also gives foreign banks and their customers an additional use for taka balances accumulated through trade.

India's rapid expansion of renewable energy is outpacing the country's power grid, leaving a growing amount of clean electricity unused even as non-fossil sources take a larger share of the electricity mix.

On a hot July afternoon this year, electricity generated from renewable sources briefly met more than half of India's peak power demand, only the second time this has happened. The first instance was around the same period a year earlier, reports BBC.

Solar, wind, hydropower and nuclear power together briefly produced more electricity than coal-based generation, marking the rapid growth of non-fossil energy in India's power system.

"It showed that renewable energy is no longer a marginal source sitting at the edge of the power system," Sumant Sinha, CEO of Nasdaq-listed clean energy company ReNew Power, told the BBC.

However, coal-fired plants still generate around 70% of India's electricity on average because they operate for more hours than solar and wind facilities.

A decade ago, India had barely 4GW of installed renewable energy capacity. That figure has now reached around 300GW, accounting for 54% of the country's total installed capacity of 552GW. India has therefore achieved its target of having half of its installed electricity capacity from non-fossil sources five years ahead of schedule.

But the rapid expansion has exposed major weaknesses in the infrastructure needed to transmit and store that electricity.

Transmission capacity falls behind

The growth of renewable generation has significantly outpaced the expansion of transmission infrastructure, creating difficulties in moving electricity from generation sites to consumers.

Transmission constraints accounted for nearly two-thirds of all renewable energy curtailment in the first quarter of 2026, amounting to around 300 gigawatt-hours (GWh), according to global energy think-tank Ember.

In other words, a substantial amount of renewable electricity that was generated could not be used because the grid lacked sufficient capacity to carry it.

One in four inter-state transmission projects is facing delays of more than a year, further widening the gap between the development of power generation and transmission infrastructure.

Sinha said generation projects can be built within 18–24 months, while transmission projects generally take longer because they involve right-of-way issues, land acquisition, regulatory approvals and coordination among multiple agencies.

Vibhuti Garg of the Institute for Energy Economics and Financial Analysis also attributed the problem to "poor planning".

She said the grid was able to absorb new capacity when India was adding around 10–15GW of generation annually. But additions reached a record 51GW last year, putting much greater pressure on the existing network.

The concentration of renewable energy projects in the north-western states of Gujarat and Rajasthan has compounded the problem, as the grid faces difficulties evacuating power from these major generation centres.

Ember analysts now consider the growing mismatch between rapidly expanding generation and slower transmission development the "most critical operational risk" to India's target of reaching 500GW of non-fossil electricity capacity by 2030.

Storage could reduce wastage

Battery storage at renewable power pooling stations could help address the mismatch by storing electricity when renewable generation is high and supplying it during periods of greater demand, particularly in the evening when solar generation declines.

"Had that been the case, India could have stored the energy and used it during evening hours rather than wasting it," Garg said.

However, storage capacity has not expanded sufficiently.

A sharp increase in battery prices, shortages of raw materials linked to the war in the Middle East and a fall in the value of the Indian currency have increased financing costs for Indian companies, Garg said.

As a result, many planned storage projects have fallen through.

Financing remains a wider challenge

Access to finance is a broader challenge for India's clean energy industry.

India is estimated to require $400–500 billion in investment to meet its 500GW renewables target by 2030. Yet around 83% of the country's climate-mitigation finance currently comes from domestic sources, according to the government's Economic Survey.

Under the Paris Agreement, developed countries committed to providing developing countries with $100 billion annually in climate finance through 2025. However, access to that funding has remained difficult.

Sinha said emerging and developing economies outside China receive only around 15% of global clean-energy investment despite accounting for roughly two-thirds of the world's population.

He said India does not necessarily need developed countries to finance its entire energy transition but needs support through cheaper loans, guarantees and protection against currency losses to encourage greater private investment.

Rising demand adds pressure

The need to address the infrastructure and financing gaps is becoming more urgent as India's electricity demand continues to rise.

India is the world's third-largest emitter of greenhouse gases, while its electricity demand has grown at a compounded rate of more than 7% annually. Demand is expected to increase further as industries such as data centres and chip manufacturing expand.

The International Energy Agency expects India's electricity demand to rise by 80% by 2035, the sharpest increase among emerging economies.

The agency has also credited India's rapid renewable energy expansion as a major contributor to slowing emissions growth in the developed world this year, even as energy-related carbon dioxide emissions in advanced economies rose more sharply for the first time since the 1990s.

With India's power demand rising and its renewable capacity expanding rapidly, experts say closing the gaps in transmission, storage and financing will be critical to making use of the electricity the country is generating.

How successfully India addresses these bottlenecks will have implications beyond its own energy sector, given the country's scale of electricity demand and its importance to global efforts to reduce greenhouse gas emissions.

Industries are going to gas-rich Bhola as PRAN-RFL Group is set to begin constructing factories in its new industrial park in the island district next month with a planned investment of around Tk 60 billion in the project.

The industrial park is being developed on nearly 1,000 bighas of land in Char Veduria under Bhola Sadar upazila. Land acquisition for the project is nearing completion, while offices for officials and employees and sheds for storing construction materials have already been built, according to group officials.

The investment will focus partly on industries that require relatively high volumes of gas and energy, such as gas-based ceramics and glassware manufacturing, taking advantage of Bhola's natural gas availability and waterways for transporting goods.

A substantial portion of the investment will come from PRAN-RFL's own funds and bank loans, while the group also plans to bring in foreign investors through joint ventures.

Kamaluzzaman Kamal, director (marketing) of PRAN-RFL Group, told The Financial Express that the group had already completed the drawings and designs for the production floors.

"Construction of four production floors will begin in the last week of October," he said.

Each floor will cover 60,000 square feet, taking the combined area of the four floors to 240,000 square feet, group officials said. Production will begin in phases after construction is completed.

The group plans to manufacture products in the Bhola industrial park that require relatively higher gas consumption, as gas is trapped there in absence of transmission pipelines connecting the national grid.

"These will include gas-based ceramic and glassware industries, which are new product lines for the group," Mr Kamal said.

The group also plans to set up factories to expand production capacity in line with market demand for products currently manufactured in its other industrial parks. These include pipes, floaters, injection-moulded products, chairs, water tanks, tables, doors, toys and footwear.

PRAN-RFL plans to bring the industrial park into full-scale production by 2028. Once fully operational, the park is expected to create more than 25,000 direct jobs, according to group officials.

Construction of internal roads, land development, housing for workers and officials, and a 60,000-square-foot warehouse is currently underway.

PRAN-RFL has applied to the relevant government authorities for gas connections for the proposed factories. It has also applied for the installation of a new 7.5-kilometre gas pipeline to the industrial park.

"Ensuring uninterrupted gas supply will allow us to expand production rapidly," he said. "If a factory is located far from the gas field, pipeline infrastructure will be needed to supply gas. A competitive gas price for industries in Bhola would also encourage more entrepreneurs to invest in the area."

Most of Bangladesh's industrial facilities are concentrated in and around Dhaka, leaving relatively fewer industrial and employment opportunities in other regions. At the same time, gas-supply constraints in and around Dhaka have now emerged as a major challenge for industries.

Against this backdrop, PRAN-RFL has been pursuing an investment strategy focused on areas where gas is relatively accessible but large-scale industrialisation remains limited.

Group officials cited the industrial park in Shayestaganj, Habiganj, which employs around 35,000 people, as an example of this strategy.

They said the Bhola park could become another major investment of this kind and help establish a new industrial base in the country's southern region.

Mr Kamal said the government's plan to establish road connectivity with Bhola, if implemented, would further improve access to the industrial park. The use of the Mongla and Payra seaports could also increase, potentially boosting economic activity in the southern region.

PRAN-RFL plans to transport goods produced in Bhola by waterway wherever feasible. The company expects this to reduce pressure on roads and help contain transportation costs.

Mongla and Payra ports are relatively close to Bhola but are not operating at their full potential because of inadequate cargo volumes. The establishment of large factories by PRAN-RFL and other companies in Bhola could increase cargo movement through the two ports, according to industry officials.

They believe the availability of natural gas in Bhola presents a major opportunity for industrialisation in the southern region. They said policy and infrastructure support from the government would be needed to fully utilise the opportunity.

The industrial park's construction and preparatory activities are expected to create employment for at least 2,000 people this year, including construction workers, according to PRAN-RFL.

The group will provide training to workers employed at the industrial park under its own training programmes. It plans to draw on the experience of training systems already operating in its other industrial parks and factories.

Once fully operational, the industrial park could generate substantial employment and business opportunities for the local economy, the company said. Higher incomes and purchasing power among local residents could also reduce the need for people to migrate to other districts in search of work.

Products manufactured in the park will initially be supplied to the domestic market. The group also plans to export the products to international markets where opportunities arise after meeting local demand.

The billionaire family behind H&M is quietly increasing its stake, fuelling speculation it could take the fast-fashion retailer private as CEO Daniel Erver's turnaround efforts have so far failed to boost the shares or lift sales significantly.

The Persson family's Ramsbury Invest holding company, primarily owned by Sweden's richest person Stefan Persson, has bought 36.8 million H&M shares so far this year, regulatory filings show.

Stefan Persson is the son of H&M founder Erling Persson and the father of chairman Karl-Johan Persson.

The family and related entities owned more than 68 percent of H&M's shares at the end of August, according to the company's website, up from 49.5 percent at the start of 2021.

"It is very difficult to view it any other way than that their strategy is to slowly buy out the company," said Sverre Linton, chief legal officer of the Swedish Shareholders' Association, which represents small shareholders.

"You could call it Sweden's slowest buyout."

Under Swedish rules, shareholders who own 90 percent of a company can compel the purchase of the remaining shares.

Minority shareholders would be best served either by a successful turnaround that lifts H&M's share price or by a "decent" cash offer from the Persson family, Linton said.

"I believe there are many shareholders who would be willing to accept such an offer at this stage."

Deutsche Bank analyst Adam Cochrane expects the family to take H&M private by 2030.

H&M referred questions about the share purchases to Ramsbury Invest, where a spokesperson declined to comment on any plans to take the company private, saying only:

"The Persson family believes in the company, are long-term owners and have historically increased their ownership over time."

H&M has struggled to lift sales as shoppers have cut back on spending and competition has intensified from ultra-cheap online retailers such as Shein and from Zara owner Inditex.

The stock has lost more than 50 percent of its value since peaking in 2015.

Erver took over as CEO in January 2024 with a mandate to improve profitability and strengthen the brand, but has yet to reignite sales growth.

Sales fell 1 percent in the first quarter and were flat in the second. Analysts expect only modest growth in the third quarter, which H&M reports on Thursday.

"Maybe the family feels that they get so much negative feedback from the markets, it's better for them to just be outside the market and then they can go ahead with much more long-term strategies," said Peter Magnusson, a portfolio manager at Cicero Fonder in Stockholm, who also expects the Perssons to take H&M private.

Stocks rebounded strongly on the Dhaka Stock Exchange (DSE) today (23 September), as renewed buying interest in undervalued scrips pushed the benchmark index higher, even as economic and geopolitical concerns persisted.

The DSEX gained 55 points, or 1%, to close at 5,596. The blue-chip DS30 index rose 16 points to settle at 2,122.

Market breadth was strongly positive, with 246 issues advancing against 102 decliners, while 37 remained unchanged. Turnover rose 7% to Tk844 crore, and market capitalisation increased by around Tk2,900 crore.

In its daily market review, EBL Securities said the recovery resumed after momentum had briefly faltered following the recent fuel price hike. "Investors returned to perceived attractive stocks despite concerns over the market outlook amid ongoing economic challenges," the brokerage said.

The market opened on a firm footing and maintained its upward momentum throughout the session, resulting in broad-based price appreciation and a positive close for the major indices, EBL Securities added.

Sheltech Brokerage attributed part of the renewed buying to expectation-based positioning ahead of fiscal year-end earnings and dividend announcements from companies whose financial year ends in June.

"Strong buying interest" emerged from the early session and strengthened further towards the close despite geopolitical uncertainty and the spillover effects of the recent fuel price hike, it said.

The DSEX climbed to an intraday high of 5,603.62 points before settling at 5,596, it added.

According to the EBL Securities, BRAC Bank, Unique Hotel, Square Pharmaceuticals, Eastern Bank and LafargeHolcim Bangladesh were among the major stocks contributing to the index's gains.

Textile stocks accounted for the largest share of market turnover at 19.9%, followed by pharmaceuticals at 16.8% and general insurance at 11.8%.

Most sectors posted gains, with travel stocks leading the sectoral performance by rising 5.6%. Paper stocks gained 5%, while life insurance advanced 3.1%. Mutual funds and general insurance were the only sectors to close lower, falling 2.4% and 0.5%, respectively.

Square Pharmaceuticals, Beximco Pharmaceuticals, Dominage Steel, Orion Infusion and IPDC Finance were the most traded stocks of the session.

Orion Pharma topped the gainers, rising 10%, followed by Unique Hotel at 9.95%, Index Agro at 9.94%, Chartered Life Insurance at 9.92% and Sea Pearl Beach Resort at 9.91%.

Among the decliners, Reliance Insurance First Mutual Fund fell 5.22%, Golden Jubilee Mutual Fund 5.20%, ICB Third NRB Mutual Fund 4.68%, IFIC First Mutual Fund 4.65% and Prime Bank First Mutual Fund 4.34%.

The Chittagong Stock Exchange also ended higher, with its benchmark CSCX gaining 38 points to 9,129, while the broader CASPI index rose 54 points to 14,870.

The Dhaka Stock Exchange (DSE) is set to launch a dedicated digital platform within two months to allow investors to directly buy, sell and redeem units of open-ended mutual funds.
Currently, investors are required to visit the offices of fund managers in person to purchase or redeem units of open-ended mutual funds.

The proposed system aims to ease the investment mechanism by bringing the order-management process under a technology-driven platform.

“The development of this platform is an important step towards making investment in mutual funds easier, more convenient, transparent and technology-driven, expected to go live by mid-November,” said DSE Managing Director Nuzhat Anwar.

Under the new system, investors will be able to see each fund’s performance and place orders online through their respective stockbrokers. The brokers will facilitate the purchase and redemption of units through the platform.

The platform will also enable investors to compare the performance of different funds in making informed investment decisions.

Currently, asset managers generally publish performance data on their respective platforms on a weekly basis. Investors therefore have to visit multiple platforms to collect information about different funds, making it cumbersome to compare performance and investment opportunities.

The initiative for a single integrated platform is also aligned with global practices.

“It is part of the exchange’s broader effort to modernise capital-market infrastructure and encourage greater participation in mutual funds,” said the DSE managing director.

Welcoming the DSE move, Mir Ariful Islam, managing director and CEO of Sandhani Asset Management, said the dedicated platform was expected to strengthen the distribution network of mutual funds and broaden their reach to investors.

“Investors, especially retailers, are expected to prefer mutual funds managed by professional asset managers,” he said.

Presently, the number of open-ended mutual funds is 106, and the assets under management (AUM) are equivalent to around Tk 58 billion as of August this year.

On the other hand, there are 34 closed-end mutual funds listed on the Dhaka bourse, and the assets under management are equivalent to around Tk 43 billion.

How will the platform work?

Unlike listed securities, open-ended mutual fund units will not be traded through continuous order matching on the stock exchanges. Instead, investors will select any fund and submit a subscription order through a participating stockbroker.

The stockbroker will act as a selling or dealing agent of the respective asset manager and help execute purchase requests through the DSE platform.

Once the purchase process is complete, investors will receive the corresponding mutual fund units in their beneficiary owner’s (BO) accounts. Units will be issued at the applicable net asset value (NAV) upon adjusting any charges as per the relevant fund rules.

The same platform will allow investors to submit redemption requests for units they already hold.

A redemption order will be processed through the relevant stockbroker and the asset manager. Units will be redeemed at the applicable price determined by the asset manager, subject to the fund’s rules and procedures.

That means investors should not expect intraday price movements or continuous trading in open-ended fund units similar to listed equities.

Instead, the subscription or redemption prices will be determined in line with the valuation and pricing mechanism prescribed by the regulator and followed by the respective fund manager.

Therefore, the proposed system will differ fundamentally from the DSE’s regular share-trading platform. In share trading, buyers and sellers submit orders that are matched through the exchange’s trading mechanism, with market prices changing according to supply and demand.

The platform for open-ended funds will primarily serve as an integrated digital order-collection and processing channel for intended transactions.

Single digital channel

DSE expects the system to make mutual fund investment more accessible by providing investors with a single digital channel for purchasing and redeeming units of eligible funds.

The platform would also make the process more convenient by allowing investors to use desktop and mobile applications instead of relying exclusively on physical or manual channels.

The initiative is intended to support greater investor participation, improve service delivery and contribute to the modernisation of capital-market infrastructure.

It will also bring the distribution process of relevant asset management companies onto a common technology platform, allowing investors to access multiple open-ended mutual fund products simultaneously through respective stockbrokers.