Bangladesh and Italy have discussed enhancing investment, technological cooperation and business partnerships in the country's leather sector, including a possible visit by a Bangladeshi delegation to Italy.
The discussion was held between Commerce Minister Khandakar Abdul Muktadir and Italian Ambassador to Bangladesh Antonio Alessandro at the Ministry of Commerce in the city, BSS reports citing a press release.

Prime Minister's Finance and Planning Adviser Professor Dr Rashed Al Mahmud Titumir was present at the meeting.

Muktadir said the proposed Italy visit would focus on attracting new investors, expanding technological cooperation and strengthening international partnerships in Bangladesh's leather industry.

The Italian ambassador proposed visits to Milan, Florence and Rome to showcase Bangladesh's leather-sector capabilities, environmentally friendly production facilities and investment opportunities to Italian businesses and investors.

He suggested holding meetings with business organisations in Milan, visiting leather industry areas in Tuscany in Florence and conducting government-level discussions in Rome to establish effective contacts with potential investors.

The meeting also underscored the importance of ensuring international-standard certification, environmental management and an investment-friendly environment in Bangladesh's leather industry.

The Italian ambassador said progress in these areas would help expand mutually beneficial partnerships between companies of the two countries.

Waste management at the Savar Leather Industrial Estate also came up for discussion.

The Bangladesh side said large factories would be encouraged to develop their own waste-management facilities while central facilities would continue to be maintained for smaller factories. Plans are also being taken to promote the recycling of industrial waste.

The meeting also discussed the registration process of the Italy Chamber of Commerce and Industry in Bangladesh.

Both sides expressed optimism about further strengthening trade, investment and industrial cooperation between Bangladesh and Italy.

The number of millionaire accounts in Bangladesh's banking sector continues to rise despite the country's ongoing economic slowdown and sluggish business environment.
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The number of millionaire accounts increased by 5077 in the April-June quarter (Q2) of the current year in comparison with the previous quarter, according to the latest report published by Bangladesh Bank (BB).

According to the central bank data, the number of millionaire accounts in the banking sector reached 141,562 at the end of June this year while the figure was 136,485 at the end of March.

Earlier, the number of millionaire accounts was 134,044 at the end of December last year.

The total number of bank accounts stood at 182.61 million (182,612,015) at the end of March this year, the central bank data revealed.

By the end of June, the figure stood at 186.38 million (186,384,588).

Thus, the total number of bank accounts increased by over 3.77 million (3772573) in three months.

According to the BB data, the total balance of deposits held in the banking sector stood at Tk 21.58 trillion at the end of March this year while the amount rose to Tk 22.10 trillion.

Accordingly, bank deposits increased by Tk 524.19 billion during the three-month period.

Apart from the rise in the number of accounts holding at least Tk 10 million, the amount of money deposited with the accounts also increased.

At the end of March this year, the balance of deposits with at least Tk 10 million accounts holding stood at Tk 8.59 trillion.

By the end of June, the balance reached Tk 8.76 trillion, the central bank figure showed.

Accordingly, the amount deposited with at least Tk 10 million accounts increased by Tk 164.98 billion in three months.

People familiar with the development said an account holding Tk 10 million or more does not necessarily belong to a millionaire individual.

The list of accounts holding more than Tk 10 million includes many organisations as well as individuals.

Moreover, there is no specific limit on the number of bank accounts that an individual or organisation can open. As a result, a single individual or organisation may hold multiple bank accounts.

The list also includes accounts holding at least Tk 10 million belonging to various government institutions and agencies.

South Korea’s SK Hynix is in talks with Intel about a deal that would see it manufacture memory chips on US soil for the first time, three people familiar with the discussions said.

Under one potential scenario, SK Hynix would lease part of Intel’s long-planned chipmaking facility in Ohio, they said.
Under another scenario, it could form a venture with Intel and major cloud firms that are keen to lock in memory chip supplies, two of the people said.

A deal would relieve pressure on Intel, which has been struggling, and mark a big win for the Trump administration, which has been ramping up pressure on chipmakers to build in the United States as relentless investment in AI and data centres fuels an acute shortage of memory chips.

But potential opposition from Seoul could be a major hurdle, the sources said.

One of the sources described the talks as exploratory and stressed that no decisions have been made, adding that SK Hynix might also consider other ways to structure the deal.

Details about how a SK Hynix-Intel deal might be structured are being reported for the first time.

Reuters was, however, not able to learn what types of chips SK Hynix may manufacture in Ohio if an agreement is struck.

Its product lineup includes DRAM (dynamic random-access memory) chips used in servers, PCs and smartphones and NAND flash memory chips that provide long-term storage memory.

It is also the leading supplier of high-bandwidth memory (HBM) used in AI processing units.

Any agreement to produce advanced memory such as HBM or even DRAM could run into opposition from the South Korean government as those technologies are considered sensitive, said the three sources who declined to be identified as the information is not public.

SK Hynix said in a statement to Reuters that it is “reviewing various measures, including establishing additional production bases, to strengthen the competitiveness of its memory business,” but “no matters have been determined at this stage.”

Intel declined to comment on what it called speculation, but added that it was continuing with investments in Ohio to ready the site.

Asked about a potential SK Hynix plan to produce chips in the US, South Korea’s trade ministry said any decision would be at the company’s discretion but if it involved a “national core technology,” it would be subject to a review under the Industrial Technology Protection Act.

The US Commerce Department did not respond to a request for comment.

Manufacturing semiconductors in the US costs much more than in South Korea, according to two of the sources.

Building in the United States entails significantly higher labour and construction costs, and much of the semiconductor industry’s supply chain is located within Asia, which also increases US costs, one of them said.

Even so, SK Hynix, which recently completed a secondary listing on the Nasdaq in July and currently only has a chip packaging facility under construction in Indiana, has good reasons to pursue fabricating chips in the United States.

Chey Tae-won, chairman of the SK Group conglomerate that SK Hynix is part of, said in July that the company faces enormous pressure and lobbying from customers and countries to supply more chips.

“I think we need to build a factory in the United States. If possible, I believe we should build it,” he told reporters.
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A deal with SK Hynix would also ease some of the financial strain on Intel, which is part-owned by the US government.

Intel announced in 2022 that it would invest up to $100 billion to build potentially the world’s largest chipmaking complex in Ohio, with production scheduled to begin in 2025.

But completion of the site’s two plants has since been delayed to 2030 and 2031.

Pleasing both Washington and Seoul could be tough, however, particularly as SK Hynix and rival Samsung Electronics have been urged by the Seoul to accelerate plans to build a new cluster of chipmaking facilities in South Korea’s southwest.

US Commerce Secretary Howard Lutnick has threatened to impose up to 100 percent tariffs on South Korean and Taiwanese companies unless they commit to increased production on American soil.

Both countries have also been wrangling over the execution of a huge investment commitment that South Korea made to the US last year in return for lower US tariffs.

Some $150 billion of a proposed $350 billion has been earmarked for shipbuilding but the remaining $200 billion is undecided.

Two of the sources said this has left SK Hynix in a difficult position, with the South Korean government seeking to use any US investment by SK Hynix as leverage in the talks, and Washington heaping pressure on the firm to quickly commit to a US expansion.

Oil prices fell on Wednesday as reports that Saudi Arabia was offering additional crude cargoes via Oman eased concerns about the scale of Middle East supply disruptions.

Brent crude futures were down 83 cents, or 0.76 percent to $107.92 a barrel at 0801 GMT, while US West Texas Intermediate futures were down $1.41, or 1.33 percent at $104.42 a barrel.

In the previous session, oil prices settled more than $3 higher after shipping industry sources said crude loadings at Saudi Arabia’s Red Sea export hub of Yanbu had been suspended and Riyadh had cancelled some cargo deliveries to European customers, deepening concerns that disruptions to a critical export route could persist for weeks.

However, Saudi Arabia is offering more loadings of crude oil to Asian refiners via ship-to-ship transfer off Oman’s Sohar port after drone attacks damaged its key oil pipeline to the Red Sea, people familiar with the matter said.

“News around Saudi Arabia exporting from the Gulf suggests concerns that the disruption could be larger are easing,” said UBS analyst Giovanni Staunovo.

Visible vessel transits through the Strait of Hormuz remained in the single digits at four on Tuesday, down from seven a day earlier, preliminary shipping data showed on Wednesday. That was well below the 10-day average of 18.

The waterway handled a fifth of the world’s oil and liquefied natural gas supply before the US-Israeli war on Iran began in late February.

Macquarie analysts said flows of crude, condensate and refined products through the Strait of Hormuz had remained resilient despite escalating hostilities in the region and may have risen to more than 7.5 million barrels per day since fighting resumed on August 30. They said the link between developments in the strait and oil flows had weakened.

Citi expects near-term escalation in the Middle East to continue supporting crude oil and refined fuel prices before the Strait of Hormuz eventually reopens in the fourth quarter of 2026 with support from regional diplomatic efforts, the bank said in a note.

European diesel futures settled at a record high and rose to their highest intraday level since April on Tuesday, underscoring tightness in fuel markets as Middle East disruptions constrained crude and product flows.

“I would expect, unless there is a peace deal or an improvement in the situation in Russia, that diesel prices stay supported,” Staunovo said.

US INVENTORIES WEIGH

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

Crude inventories rose by 7.1 million barrels in the week ended September 11, the sources said, citing API data. That compared with analysts’ expectations for a draw of about 1.6 million barrels, according to a Reuters poll.

API’s data showed unexpected increases in gasoline and diesel inventories have weighed on prices, but regional stock increases do not change the underlying tightness in the global crude market, Haitong Futures said in a note.

Gold prices ticked up on Wednesday as oil prices eased, while market participants looked ahead to the US Federal Reserve’s policy decision, with a rate hike largely priced in.

Spot gold was up 0.8 percent at $4,326.83 per ounce, as of 0650 GMT, after touching a more than one-month low on Monday.

US gold futures for December delivery were down 0.8 percent at $4,367.20.

“A hawkish Fed could pull gold down, while any soft messaging may ease bets on hikes and help the metal recover. Traders are also monitoring oil prices and developments in the Middle East,” said Frank Walbaum, a market analyst at trading platform Naga.com.

Gold is often seen as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding bullion. Oil prices fell after an unexpected buildup in US crude inventories, while investors assessed supply risks after Saudi Arabia suspended oil loading at its Yanbu port.

Traders are pricing in a 92.7% chance of at least a 25-basis-point US rate hike later in the day, according to CME FedWatch.

The policy decision will be followed by a press conference from Fed Chair Kevin Warsh.

On the geopolitical front, Saudi Arabia’s air defences destroyed a Houthi drone south of Mecca before it entered prohibited airspace over the holy city, a spokesperson for the Saudi-led military coalition in Yemen said, as fighting spreads in the Middle East.

Commerzbank said it was somewhat surprising that gold prices had not come under greater pressure so far.

It noted that gold’s resilience may be supported by persistent fiscal concerns, reflected in elevated long-term government bond yields, as well as a recent rise in US political risks.

Among other metals, spot silver rose 1.5 percent to $64.59 per ounce, platinum edged 0.7 percent higher to $1,787.90, while palladium gained 2.2 percent to $1,317.50.

The Moscow Chamber of Commerce and Industry has expressed interest in forming a joint Russia-Bangladesh business council to strengthen trade, investment and economic cooperation between the two countries.

The Russian side also wants to organise a Russia-Bangladesh business forum in Moscow to facilitate direct business-to-business contacts between entrepreneurs from the two countries.

Alexander Grigoryevich Khozin, Russian ambassador to Bangladesh, conveyed the proposals during a meeting with Md Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry, at the federation’s Gulshan office yesterday.

A formal announcement on the proposed business council may come at the meeting of the Intergovernmental Commission, scheduled to be held in Dhaka in early November, Alexander said.

The ambassador said the proposed forum in Moscow would bring Bangladeshi and Russian businesses together for direct B2B meetings and other sessions based on the profiles of participating Bangladeshi entrepreneurs.

At the meeting, Fazlul urged both sides to look beyond the readymade garment sector and explore new areas of trade.

He particularly highlighted pharmaceuticals, leather and leather goods, jute and jute products, ceramics and the export of manpower to Russia.

Alexander said Russia’s health ministry was already reviewing procedural and legal issues related to importing generic medicines from Bangladesh.

He also said there was good demand in Russia for heavy footwear and leather goods suitable for its harsh winter.

Russia has issued visas to around 3,000 Bangladeshi workers in recent months as employment opportunities have emerged in agriculture, fisheries, shipbuilding and the services sector, he informed.

The two sides also discussed the progress of the Rooppur Nuclear Power Plant project.

Around 4,000 Russian specialists and engineers are working to resolve technical issues related to the project, Alexander said.

He said work was progressing with the aim of supplying the first 300 megawatts of electricity to the national grid by next month.

Both sides expressed hope that greater cooperation between the government and private sectors would help strengthen commercial ties between Bangladesh and Russia.

SRI LANKA INVITES BANGLADESHI DELEGATION TO ATTEND FAIR

Meanwhile, Dharmapala Weerakkody, Sri Lankan high commissioner to Bangladesh, held a separate meeting with the FBCCI administrator yesterday.

He said the international trade fair Sri Lanka Expo 2027 would be held in Colombo from January 14 to 17 next year.

The Sri Lankan envoy invited a Bangladeshi business delegation, led by the FBCCI, to participate in the fair.

Hoque responded positively to the proposal to send a delegation to the expo.

Md Alamgir, secretary general of FBCCI, along with officials from the Russian Embassy and the Sri Lankan High Commission, attended the respective meetings.

মধ্যপ্রাচ্যে চলমান সংঘাত ও গুরুত্বপূর্ণ জ্বালানি পরিবহন রুটে নিরাপত্তা ঝুঁকির মধ্যে সৌদি আরবের ইস্ট-ওয়েস্ট পাইপলাইন ক্ষতিগ্রস্ত হওয়ায় ইউরোপের কয়েকটি রিফাইনারিতে নির্ধারিত তেল সরবরাহ বাতিল হয়েছে। একই সময়ে হরমুজ ও বাব আল-মান্দেব প্রণালিতে জাহাজ চলাচল কার্যত বন্ধ থাকায় বিশ্ববাজারে অপরিশোধিত জ্বালানি তেলের দাম বেড়েছে। তবে এ পরিস্থিতিতে বাংলাদেশের জন্য এখনই সরবরাহ সংকটের আশঙ্কা দেখছে না জ্বালানি বিভাগ ও বাংলাদেশ পেট্রোলিয়াম করপোরেশন (বিপিসি)। দেশে পর্যাপ্ত মজুদ থাকলেও সংঘাত দীর্ঘায়িত হলে এবং পরিবহন রুটের ঝুঁকি বাড়লে আন্তর্জাতিক বাজারে দাম ও পরিবহন ব্যয় বেড়ে বাংলাদেশের জ্বালানি আমদানি ব্যয়ে বড় চাপ তৈরি হতে পারে বলে আশঙ্কা করছেন সংশ্লিষ্টরা।
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সম্প্রতি সৌদি আরবের বৃহৎ জ্বালানি তেলের ইস্ট-ওয়েস্ট পাইপলাইন ক্ষেপণাস্ত্র হামলায় ক্ষতিগ্রস্ত হওয়ায় ইউরোপের তেল পরিশোধনাগারগুলোতে তেল রফতানি বন্ধ ঘোষণা করেছে। ইউরোপের রিফাইনারিগুলোর জন্য সেপ্টেম্বরে সরবরাহের শিডিউল থাকা বেশকিছু কার্গো এরই মধ্যে বাতিল করা হয়েছে। হরমুজ ও বাব আল-মান্দেব প্রণালিতে জাহাজ চলাচল কার্যত বন্ধ থাকায় ফিউচার মার্কেটে অপরিশোধিত জ্বালানি তেলের (ক্রুড অয়েল) দাম ব্যারেলপ্রতি ১০৮ ডলারের বেশিতে ওঠানামা করছে। পরিস্থিতি আরো অবনতি হলে জ্বালানি তেলের সরবরাহ সংকট এশিয়ার বাজারেও বড় ধরনের নেতিবাচক প্রভাব ফেলবে বলে জানিয়েছে জ্বালানির আন্তর্জাতিক বাজার বিশ্লেষণের পূর্বাভাস দেয়া প্রতিষ্ঠানগুলো।

ইউরোপের বাজারে তেল রফতানি স্থগিত কিংবা কার্গো সরবরাহ বাতিল করলেও বাংলাদেশ সরবরাহ বন্ধ-সংক্রান্ত কোনো বার্তা নেই বলে জানিয়েছেন জ্বালানি বিভাগের কর্মকর্তারা। বরং অপরিশোধিত জ্বালানি যে পরিমাণ আমদানি করা হয়েছে তা দিয়ে আগামী চার মাস কোনো অসুবিধা হবে না বলে জানিয়েছেন তারা।

জ্বালানি বিভাগের মুখপাত্র (যুগ্ম সচিব) মনির হোসেন চৌধুরী বণিক বার্তাকে বলেন, ‘সৌদি জ্বালানি সংকটে আমাদের আমদানি বন্ধ-সংক্রান্ত কোনো বার্তা নেই। আমরা জ্বালানি তেলের বড় অংশ এ অঞ্চল অর্থাৎ চীন, মালয়েশিয়া, সিঙ্গাপুর থেকে সংগ্রহ করি। সৌদি থেকে ক্রুড অয়েল আমদানি করি। এখন পর্যন্ত দুটো জাহাজ আমাদের স্টক রয়েছে, যা দিয়ে আগামী চার মাস ক্রুডের কোনো সমস্যা হবে না। এদিক থেকে আমরা নিশ্চিত রয়েছি।’

সৌদি আরবের তেল সরবরাহ কার্যক্রম বন্ধ থাকলে বাব আল-মান্দেব প্রণালি দিয়ে জাহাজ চলাচলে হুমকি, হরমুজ প্রণালি বন্ধ থাকলে তা জ্বালানি তেলের দাম ব্যাপক হারে বাড়িয়ে তুলতে পারে। এতে জ্বালানি আমদানিনির্ভর দেশ হিসেবে বাংলাদেশ ব্যয় বেড়ে যাওয়ার বড় ঝুঁকিতে রয়েছে বলে জানিয়েছেন জ্বালানি বিশেষজ্ঞরা।

এরই মধ্যে অপরিশোধিত জ্বালানি তেলের বিকল্প উৎস খুঁজছে বিপিসি। বিকল্প সরবরাহকারীদের সঙ্গে আলোচনাও করেছে সংস্থাটি। পাশাপাশি ইস্টার্ন রিফাইনারিতে পরিশোধনের উপযোগী চারটি দেশের অপরিশোধিত তেল চিহ্নিত করেছে বিপিসি। নাইজেরিয়ার ‘বনি ক্রুড’, মালয়েশিয়ার ‘মালয়েশিয়ান ব্লেন্ড’, নরওয়ের ‘আলভহেইম ব্লেন্ড’ এবং আলজেরিয়ার অপরিশোধিত তেলের বৈশিষ্ট্য পরীক্ষা করা হয়েছে। বিপিসি জানিয়েছে, বিদ্যমান শোধনাগার সুবিধা ব্যবহার করেই এসব অপরিশোধিত তেল প্রক্রিয়াজাত করে বাজারজাত করা সম্ভব। গত এপ্রিলে ইস্টার্ন রিফাইনারি নমুনা পরীক্ষার প্রতিবেদন বিপিসির কাছে জমা দেয়।

দেশে প্রতি বছর জ্বালানি তেলের চাহিদা ৬৫ থেকে ৭০ লাখ টন। যার মধ্যে অপরিশোধিত তেল আমদানি করা হয় ১৪-১৫ লাখ টন। দুটি দেশ থেকে এ তেল আমদানি করা হয়, যার মধ্যে সৌদি আরবের রাষ্ট্রায়ত্ত ‘অ্যারাবিয়ান লাইট ক্রুড’ এবং সংযুক্ত আরব আমিরাতের ‘মারবান ক্রুড’। এ দুই ধরনের অপরিশোধিত তেল থেকে ডিজেল, বিটুমিন ও পেট্রলসহ ১৩ ধরনের পেট্রোলিয়াম পণ্য তৈরি হয় দেশের রিফাইনারিতে।

বিপিসির নতুন চেয়ারম্যান মো. রফিকুল ইসলাম বণিক বার্তাকে বলেন, ‘বর্তমানে দেশে তেলের পর্যাপ্ত মজুদ আছে, আগামী ডিসেম্বর পর্যন্ত দেশে জ্বালানির কোনো ঘাটতি হবে না। সেই সঙ্গে অপরিশোধিত জ্বালানি তেলের বিকল্প উৎসগুলোর সঙ্গে বিপিসি এরই মধ্যে আলোচনা শুরু করেছে।’

Work is progressing with the target of supplying 300 megawatts of electricity from the Rooppur Nuclear Power Plant to the national grid within the next month, said the Russian Ambassador to Bangladesh Alexander Khozin.

He made the remarks on Wednesday during a courtesy meeting with Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at the organisation’s Gulshan office in Dhaka, according to an FBCCI press release.

The meeting also discussed progress on the Rooppur Nuclear Power Plant project.

Khozin said that around 4,000 Russian specialists and engineers are working tirelessly to resolve the project’s technical issues as quickly as possible.

He further stated that the Moscow Chamber of Commerce and Industry has expressed interest in forming a joint "Russia-Bangladesh Business Council" to further intensify and expand trade, investment and economic cooperation between Bangladesh and Russia.

They also have plans to organise a Russia-Bangladesh Business Forum in Moscow, he said.

The Russian ambassador said that an official announcement on this matter may come during the inter-governmental commission meeting scheduled to be held in Dhaka early November.

He said the forum is being organised in Moscow to facilitate direct communication between entrepreneurs from the two countries. Various sessions, including direct business-to-business (B2B) meetings will be arranged based on the profiles of participating businessmen from Bangladesh.

At the meeting, FBCCI Administrator Fazlul Hoque called for greater focus on new and promising sectors alongside the readymade garment sector to boost bilateral trade.

He placed particular emphasis on exporting human resources to Russia, along with pharmaceuticals, leather and leather goods, jute and jute products and ceramics.

The Russian ambassador said the Russian Ministry of Health is already reviewing procedural and legal issues concerning the import of generic medicines from Bangladesh.

He added that there are also strong demand for heavy footwear and leather goods suitable for Russia’s severe winter.

Khozin further said Russia had issued visas to around 3,000 Bangladeshi workers in recent months as employment opportunities had emerged in agriculture, fisheries, shipbuilding and service sector.

Bangladesh’s exporters are losing ground to regional competitors as rising energy, financing and logistics costs squeeze profit margins and make it increasingly difficult to match the prices and delivery times offered by countries such as Vietnam, China and India.

The pressure is becoming harder to absorb because exporters have little scope to pass higher costs on to overseas buyers, raising the risk of lost orders and shrinking market share.

Bangladesh’s merchandise exports declined by nearly 5 percent in 2025, falling to $47.74 billion compared with the previous year, according to official data.

By comparison, Vietnam’s exports grew 16.8 percent in 2025 and China’s 5.5 percent, while global merchandise exports increased 7.2 percent, data from the World Trade Organization and UN Trade and Development (UNCTAD) showed.

Even a small difference in price can determine where an order goes, industry leaders say. The continuing conflict in the Middle East and the Trump administration’s additional 10 percent tariff are now adding to the pressure on exporters, making it harder for them to compete.

Buyers may shift orders when Bangladesh’s free-on-board (FOB) price – the price before shipping and insurance – is just 1-2 percent higher than that of a competitor, said Asif Ibrahim, vice-chairman of New Age Group.

For a $4 garment, a 1-2 percent difference amounts to only 4-8 cents per piece.

But on a one-million-piece order, that could mean a difference of $40,000-$80,000, explained Asif, who is also a former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

“Bangladesh has already lost orders to Vietnam, India, Pakistan, Sri Lanka and Indonesia, particularly when buyers prioritise price and delivery reliability,” Ibrahim said.

He said industry estimates suggest production costs have risen by around 30-40 percent over the past several years, driven by higher gas and electricity prices, wages, interest rates and exchange-rate depreciation.

But buyers have generally not increased the FOB prices proportionately.

ENERGY, LOGISTIC COSTS RISE

Energy has emerged as one of the biggest constraints. Bangladesh’s electricity tariff increased nearly 19 percent, from Tk 8.95 per unit in February 2024 to Tk 10.63 in June 2026.

In April 2025, gas tariffs for new industrial connections rose 33.3 percent to Tk 40 per unit, while captive power gas prices increased 36.6 percent to Tk 42.

“Even a 2–3 percent reduction in manufacturing costs would be transformative. On $40 billion in RMG exports, 2 percent represents about $800 million in competitiveness,” Ibrahim said.

Meanwhile, logistics costs are adding to the pressure.

Chattogram Port’s October 2025 tariff revision raised service charges by an average 41 percent, while charges for a 20-foot container increased 37 percent to Tk 16,243 from Tk 11,849, according to Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Private inland container depots also increased export-container handling charges by roughly 36-44 percent, he said.

“Exporters often have limited scope to pass these additional costs on to overseas buyers,” Fazlee said.

He said longer logistics lead times, partly linked to the lack of a deep-sea port, are further weakening Bangladesh’s position, while poor branding, bureaucracy, skills shortages and slow automation are compounding the problem.

Riad Mahmud, managing director of Shoeniverse Footwear, said higher interest rates and disruptions in energy supply had significantly increased operating costs and put pressure on cash flow.

He said many banks are either not providing sufficient working capital or are taking too long to process financing, despite government calls for support.

“If the government’s incentives are not implemented in time, high costs will erode our export competitiveness. We risk losing orders and market share to competing countries, and those markets may be difficult to regain,” Riad said.

PROFIT MARGIN FALLING

For some exporters, the squeeze is already hitting profitability.

RN Paul, managing director of RFL, said rising electricity, gas, port and freight costs had increased production expenses, while the company had little room to raise prices because it competes directly with suppliers from China and Vietnam.

“We have no scope to increase prices because we have to compete with China and Vietnam. Our prices have remained static,” he said.

RFL has installed solar power and improved labour productivity to contain costs, but Paul said these measures have not been enough to offset the increase.

The company’s profit margin may have fallen from around 3 percent to 1 percent, he estimated.

As a result, RFL is avoiding some export orders that could result in losses, a shift Paul said would slow market growth.

The competitiveness problem extends beyond individual exporters and could affect investment, employment and economic growth, said Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue.

“The ongoing Middle East crisis, the enforcement of an additional 10 percent tariff under the Trump administration, and other trade-related measures have emerged as serious challenges to exporters’ competitiveness. These factors are significantly increasing the cost of doing business,” he said.

He warned that losing buyers could have long-term consequences because relationships built over years can be difficult to restore once orders move to competing countries.

“Export competitiveness is linked to employment and GDP growth, as well as the inclusiveness of growth. SMEs suffer more from these pressures,” Mustafizur said.

The US Federal Reserve on Wednesday raised interest rates for the first time since 2023, defying President Donald Trump's demand for cuts, as central bank chief Kevin Warsh stressed the need to combat inflation that has been "too high" for "too long."

The Fed's Federal Open Market Committee voted unanimously to raise rates by 25 basis points to between 3.75 and 4.00 percent.

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"The plain fact is that inflation is too high, and has been for too long," Warsh told a press conference, adding that the decision was a "serious" but necessary one.

And Wednesday's rate hike may not be the last -- the vast majority of Fed policymakers indicated that at least one more rate hike was likely necessary before the end of the year, according to their Summary of Economic Projections (SEP).

US households and businesses have been battered by years of higher-than-target inflation, and prices have surged in the wake of Trump's war on Iran, his signature tariff policies and the ongoing AI boom.

The US president reacted angrily to the decision Wednesday, calling it a "raise against Trump" and accusing the Fed's rate-setting committee -- which he called "hostile" -- of making decisions for political reasons.

The president has launched an unprecedented assault on the Fed's independence since taking office, attempting to fire a Fed Governor and launching a criminal probe against Warsh's predecessor in his quest for lower rates to spur economic activity.

Wednesday's statements refrained from directly insulting or criticizing Warsh, as Trump was wont to do with former Fed chair Jerome Powell.

Trump's Republican Party faces a stern test in upcoming midterm elections, with rival Democrats seeking to wrest control of both houses of Congress and economic issues front-and-center for voters.

Growing calls for hike

The Fed had held rates steady since January, choosing to wait to gauge the effects of the Iran war's energy price shocks and to let the impact of tariffs on prices ripple through the economy.

Since July, however, a growing faction of policymakers had indicated a rate hike may be required to tame inflation, as the war grinds on and prices remained elevated, particularly for energy.

On Friday, August's consumer price index came in at 3.4 percent -- unchanged from the month before, but still well above the Fed's long-term two-percent target.

Diane Swonk, chief economist at KPMG, said inflation had "forced the Fed's hand."

"Price pressures remain too elevated and too persistent for policymakers to look through, while the economy and labor market have held up well enough to absorb tighter policy," she said.

In its SEP, the Fed raised its forecast for its preferred gauge of inflation -- the Personal Consumption Expenditures (PCE) price index -- by 0.1 percentage points to 3.7 percent by year-end.

The Fed also raised its projection for GDP growth by year-end to 2.3 percent, up 0.1 percentage points.

Warsh reiterated his belief in the "resilience" of the US economy, citing its strength as being a marker of its ability to absorb tighter financial conditions.

'Rather unfortunate'

US stock markets largely priced in Wednesday's rate hike, but they were still down on the news -- expected with any rate hike as investors adjust their portfolios.

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Yields on 10-year US Treasury bonds -- which have surged in recent days as uncertainty on long-term inflation has spiked -- were also up past the five-percent threshold, a sign that uncertainty remains a factor.

Warsh was named to his position after a contentious Senate confirmation process, during which Democratic lawmakers accused him of being a "sock puppet" for Trump, which he denied.

The Fed has a dual mandate to deliver maximum employment while keeping inflation to its long-term two-percent target.

It mainly achieves these goals by setting the key US interest rate -- lower rates tend to spur economic activity but fuel inflation, and hiking them cools both activity and prices.

The Fed's SEP showed that at least 12 of 18 policymakers who participated in the projection expected one more rate hike would be required before the end of the year.

Four policymakers expect two more rate hikes to be required.

Warsh has criticized the Fed's policy of offering such projections in the past and did not participate in the previous iteration in June.

This projection also included only 18 policymakers, suggesting he had once again withheld his contribution.

The Federal Reserve raised interest rates on Wednesday and flagged more hikes in the coming months, with new US central bank chief Kevin Warsh joining a unanimous decision that effectively acknowledges the Trump administration's inability so far to control inflation that policymakers worry could worsen.

While President Donald Trump had promised to lower prices on his watch, the combined impact of his global import tariffs, an energy shock following the start of the US-Israeli war with Iran, and capital spending from the artificial intelligence boom has kept price pressures intense enough that the Fed felt it needed to raise its benchmark overnight interest rate by a quarter of a percentage point to the 3.75%-4.00% range.
Updated quarterly economic projections showed 16 of 18 policymakers anticipate at least one more quarter-percentage-point hike by the end of this year, with only two of them seeing rates remaining stable from here. All but one indicated they saw upside risks to inflation that they no longer described as largely arising from one-off supply shocks.
What do higher rates mean for borrowers and savers?

Warsh, who again did not submit rate or other economic projections, attributed the need for tighter monetary policy in part to an economy he sees as picking up speed, with strong economic and job growth adding to price pressures that no longer seem rooted in oil costs or import tariffs alone.

"There's been a pretty wide-ranging set of data, including the labor markets, that the economy has strengthened," Warsh told reporters in listing the reasons that prompted him to support a rate hike after advocating that rates should remain on hold at the Fed's July 28-29 meeting. "Domestic spending has been resilient, productivity growth strong, and capital investment is robust."

The rate increase was the first such move in three years and the first policy shift under the new Fed chief, who took office in late May after being selected by Trump with an expectation that he would cut rates.

"Inflation remains elevated. Today's policy action will support a timelier return to the committee's 2% goal," the central bank's Federal Open Market Committee said in its policy statement after the end of a two-day meeting.

Warsh, speaking in his post-meeting press conference, called the rate hike the "right decision."

"I would be hard-pressed to describe broad financial conditions as restrictive," he said. "This view was widely shared by the committee, so we removed a dose of accommodation."

Trump responds

Trump reacted quickly, repeating what has been a standing call since returning to office in January 2025 that interest rates in the US should be slashed to perhaps 1%, a level usually associated with Fed efforts to boost the economy out of a crisis and something that would likely be inflationary in normal times.

"Interest Rates in the United States should be 1%, or less, because we are the Best Credit in the World — BY FAR. Our Country is BOOMING with new Investment! If we stopped Trading with every country that we have a Deficit with, which is most of them, we would make, at least, 1.5 Trillion Dollars a year. The word 'Deficit' is nothing more than a fancy word for LOSS ... LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!" Trump said on his Truth Social platform in comments that, while not mentioning Warsh by name, were reminiscent of the sorts of barbs the president launched routinely at former Fed Chair Jerome Powell.

The president's reaction highlighted the significance of the Fed's move under Warsh on Wednesday. In a truncated press conference, roughly 15 minutes shorter than what was typical under his predecessors, Warsh focused on the emerging evidence that convinced him inflation would not improve at an adequate pace without tighter monetary policy — a direct counter to administration officials' comments that inflation was no longer a problem or would fall on its own over time.

The dollar strengthened broadly and yields on 2-year US Treasury notes — highly influenced by Fed policy rate expectations — shot to the highest in more than two years after the release of the Fed's policy statement and projections. Yields on longer-dated bonds, meanwhile, held steady, flattening the yield curve in an initial vote of confidence that Warsh — who calls inflation a "choice" of the central bank — was at last acting on his running pledge to deliver price stability.

"The Fed has finally begun its hiking cycle, and the debate now shifts from whether rates will rise again to how many hikes lie ahead," said Seema Shah, chief global strategist at Principal Asset Management in London. "The unanimous vote shows that rising energy prices and stubborn inflation have brought even the doves on board, making a one-and-done move highly unlikely."

Indeed, rate futures markets reflect about a 90% probability of a follow-up quarter-percentage-point Fed rate hike by the end of this year, according to CME Group's FedWatch Tool.

The Fed's policy statement and projections show the policy rate rising to the 4.00%-4.25% range by the end of this year and ending 2027 at the same level.

Notably, the policy statement dropped a previous reference attributing current elevated inflation to "supply shocks," particularly in the energy sector, a nod to concerns among policymakers, including Warsh, that price pressures were too broad for comfort.

The rate increase was announced less than two months ahead of midterm elections that will determine whether Trump's Republicans maintain control of Congress for the final two years of his presidency. The Republicans are facing an uphill battle with voters angry about gasoline prices that are about a third higher than a year ago and interest rates on home mortgages that have been rising steadily this year. The average rate on a 30-year fixed-rate mortgage is approaching 7%.

Fed policymakers marked up their estimates of inflation, as measured by the Personal Consumption Expenditures Price Index, to 3.7% versus the 3.6% projected at the meeting in June. Inflation is not projected to return to the 2% target until 2029, a year later than previously expected.

Economic growth was marked up slightly from 2.2% to 2.3%, while the unemployment rate is seen ending the year at 4.1%, versus the 4.3% projected in June.

ঢাকার দুটি পাতাল মেট্রোরেল প্রকল্পের প্রথম সংশোধনী প্রস্তাব অনুমোদন করা হয়েছে। এর মধ্যে বিমানবন্দর-কমলাপুর ‘এমআরটি লাইন ১’-এ ব্যয় হবে ১ লাখ ১৪ হাজার ৩৯৫ কোটি টাকা। অন্যদিকে হেমায়েতপুর-ভাটারা ‘‌এমআরটি লাইন ৫, নর্দান রুট’-এর ব্যয় ধরা হয়েছে ৮৯ হাজার ৮৪৮ কোটি টাকা। এতে প্রকল্প দুটির মোট ব্যয় দাঁড়িয়েছে ২ লাখ ৪ হাজার ২৪২ কোটি টাকায়। গতকাল জাতীয় অর্থনৈতিক পরিষদের নির্বাহী কমিটির (একনেক) সভায় প্রকল্প দুটির প্রথম সংশোধনী প্রস্তাব অনুমোদন করা হয়। একই সভায় ৪৫ হাজার ৫০৩ কোটি টাকা ব্যয়ে এমআরটি লাইন ৫, সাউদার্ন রুট নামে নতুন আরেকটি মেট্রোরেল প্রকল্পও অনুমোদন পেয়েছে।
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এমআরটি লাইন ১ প্রকল্পটি ২০১৯ সালের অক্টোবরে অনুমোদিত হয়। সে সময় ব্যয় ধরা হয়েছিল ৫২ হাজার ৫৬১ কোটি টাকা। তবে অনুমোদনের সাত বছর পার হতে চললেও এখনো মাঠ পর্যায়ে মূল অবকাঠামোর নির্মাণকাজ শুরু হয়নি। এখন প্রকল্পের মেয়াদ সাত বছর বাড়িয়ে ২০৩৩ সালের ডিসেম্বর পর্যন্ত করা হয়েছে।

২০১৯ সালে অনুমোদনের সময় এমআরটি লাইন ৫, নর্দান রুটের ব্যয় ধরা হয়েছিল ৪১ হাজার ২৩৮ কোটি টাকা। এ মেট্রোরেলে হেমায়েতপুর-আমিনবাজার অংশটি উড়ালপথ হবে। আর আমিনবাজার-ভাটারা অংশটি ঘনবসতিপূর্ণ এলাকায় পাতালপথে যাবে। প্রকল্পটি মূলত ২০২৮ সালের মধ্যে সমাপ্ত হওয়ার কথা ছিল। প্রকল্পের মেয়াদ এখন ২০৩২ সালের ডিসেম্বর পর্যন্ত বাড়ানো হয়েছে।

এদিকে গতকাল একনেকে অনুমোদন পেয়েছে এমআরটি লাইন ৫, সাউদার্ন রুট নামে নতুন একটি মেট্রোরেল প্রকল্প। ৪৫ হাজার ৫০৩ কোটি টাকা ব্যয়ের এ প্রকল্পের মেয়াদ ধরা হয়েছে ২০৩৩ সালের আগস্ট পর্যন্ত। গাবতলী থেকে শুরু হয়ে কল্যাণপুর, শ্যামলী, আসাদগেট, কারওয়ান বাজার, হাতিরঝিল, তেজগাঁও ও আফতাবনগর হয়ে দাসেরকান্দিতে শেষ হবে এ মেট্রোরেল।

প্রকল্পের নথি অনুযায়ী, এ রুটে স্টেশন থাকবে ১৫টি। এর মধ্যে ১১টি ভূগর্ভস্থ ও চারটি এলিভেটেড। গাবতলী থেকে আফতাবনগর পর্যন্ত অংশ হবে ভূগর্ভস্থ এবং আফতাবনগর থেকে দাসেরকান্দি পর্যন্ত হবে এলিভেটেড। এ রুটে প্রাথমিকভাবে ছয়টি শীতাতপ নিয়ন্ত্রিত কোচবিশিষ্ট ১৯টি মেট্রোরেল পরিচালনা করা হবে। প্রতিটি মেট্রোরেল সর্বোচ্চ ১ হাজার ৯০৮ জন যাত্রী পরিবহন করতে পারবে। এটি চালু হলে গাবতলী থেকে দাসেরকান্দি পর্যন্ত যাতায়াতে সময় লাগবে ২৮ মিনিট।

এদিকে এমআরটি লাইন-৫ (সাউদার্ন রুট)-এর ডিপিপি অনুমোদন পাওয়াকে একটি বড় ইতিবাচক সুযোগ হিসেবে দেখছেন পরিবহন বিশেষজ্ঞ ড. মো. হাদিউজ্জামান। তিনি বণিক বার্তাকে বলেন, ‘‌এতদিন এককভাবে জাইকার অর্থায়ন ও তাদের নির্দিষ্ট টেকনিক্যাল স্পেসিফিকেশনের ওপর নির্ভর করার কারণে পাতাল অংশের প্যাকেজগুলোতে উন্মুক্ত প্রতিযোগিতা হতে পারেনি। এখন এডিবি ও কোরিয়ার ইডিসিএফের মতো বিকল্প অর্থায়নের ফলে নতুন করে স্পেসিফিকেশন তৈরির সুযোগ মিলবে। এতে ঢাকায় প্রতি কিলোমিটার পাতালপথ নির্মাণের প্রকৃত ব্যয় কত হওয়া উচিত, তার একটি বস্তুনিষ্ঠ ও তুলনামূলক চিত্র সামনে আসবে এবং নির্মাণ ব্যয় নিয়ে দীর্ঘদিন ধরে চলা বিভ্রান্তি কেটে যাবে।’

‘এমআরটি লাইন ১’ ও ‘এমআরটি লাইন ৫, নর্দান রুট’ প্রকল্প দুটির ব্যয় বৃদ্ধির বিষয়টি প্রথম আলোচনায় আসে বিগত অন্তর্বর্তী সরকারের সময়ে। সে সময় বিভিন্ন প্যাকেজের দরপত্রে অংশ নেয়া ঠিকাদারদের সর্বনিম্ন দর ঢাকা ম্যাস ট্রানজিট কোম্পানি লিমিটেডের (ডিএমটিসিএল) প্রাক্কলনের চেয়ে বেশি হয়ে যায়। এরপর প্রক্রিয়া ধীর করে পুনরায় দরপত্র আহ্বান এবং দর প্রস্তাবকারী ঠিকাদারদের সঙ্গে ‘নেগোসিয়েশন’-এর উদ্যোগ নেয় সংস্থাটি। যদিও এ প্রক্রিয়ায় সায় দেয়নি প্রকল্প দুটির ঋণদাতা সংস্থা জাপান আন্তর্জাতিক সহযোগিতা সংস্থা (জাইকা)। চলতি বছরের ফেব্রুয়ারিতে বিএনপি সরকার গঠনের পর মেট্রোরেল প্রকল্পের দর প্রক্রিয়া আবার গতি পায়। এরই ধারাবাহিকতায় গতকাল প্রকল্প দুটির সংশোধনী প্রস্তাব অনুমোদন করা হলো।

সংশোধনী প্রস্তাবে ব্যয় বৃদ্ধির কারণ হিসেবে কভিড মহামারীর সময় নকশা ও দরপত্র প্রস্তুত করতে বিলম্ব এবং দেশের প্রথম পাতাল মেট্রোরেল বাস্তবায়নে জটিলতাকে দায়ী করা হয়েছে।

অন্যদিকে জাপানের কারিগরি ও আর্থিক সহায়তায় বাস্তবায়নাধীন প্রকল্প দুটির ব্যয় বৃদ্ধি ও সুদের হার পরিবর্তনের ব্যাখ্যা দিয়েছেন পরিকল্পনা প্রতিমন্ত্রী মো. জোনায়েদ আব্দুর রহিম সাকি। গতকাল একনেক সভা-পরবর্তী সংবাদ সম্মেলনে তিনি জানান, কাজের পরিধি বৃদ্ধি, স্টেশনের গভীরতা বাড়ানো, মূল্যস্ফীতি, ডলারের বিপরীতে টাকার অবমূল্যায়ন এবং ভ্যাট-ট্যাক্স বৃদ্ধির কারণে প্রকল্প দুটির ব্যয় প্রাথমিক হিসাবের তুলনায় প্রায় দ্বিগুণ হয়েছে।

প্রতিমন্ত্রী বলেন, ‘ব্যয় বৃদ্ধি ও অন্যান্য সংশয় যাচাই করতে সাবেক সচিব, বুয়েটসহ বিভিন্ন প্রতিষ্ঠানের জ্যেষ্ঠ প্রকৌশলী, আইটি ও ফাইন্যান্স বিশেষজ্ঞদের সমন্বয়ে প্রকৌশলী শামীম জেড বসুনিয়ার নেতৃত্বে একটি টেকনিক্যাল কমিটি গঠন করা হয়। কমিটির সুনির্দিষ্ট পরামর্শ ও যাচাই-বাছাইয়ের ভিত্তিতেই প্রাক্কলন সংশোধন করা হয়েছে।’

তিনি জানান, প্রকল্প দুটির ঋণ চুক্তিতে সুদের হারও বাড়ছে। অতীতে জাইকার সুদের হার দশমিক ৭ শতাংশ অনুমিত থাকলেও বর্তমানে তা বেড়ে ৩ দশমিক শূন্য ৫ শতাংশে দাঁড়িয়েছে। আগামীতে প্রতি কোয়ার্টারে এ হার আরো বাড়ার আশঙ্কা রয়েছে। ফলে প্রকল্প গ্রহণে দীর্ঘসূত্রতা হলে ব্যয় ও ঋণের বোঝা আরো বাড়তে পারে।

প্রতিমন্ত্রী বলেন, ‘ঢাকার তীব্র যানজট ও জনসংখ্যা বিবেচনায় ভূগর্ভস্থ মেট্রোরেল ব্যবস্থার বিকল্প নেই। এটি চালু হলে জ্বালানি সাশ্রয়, যাতায়াতের সময় হ্রাস এবং নাগরিকদের কর্মঘণ্টা ও উৎপাদনশীলতা বাড়বে। সামগ্রিক জনস্বার্থ, দীর্ঘমেয়াদি সুবিধা এবং ভবিষ্যতের সম্ভাব্য আর্থিক ক্ষতির ঝুঁকি এড়াতেই সংশোধন সাপেক্ষে প্রকল্প দুটি এগিয়ে নেয়ার সিদ্ধান্ত হয়েছে।’

BRAC Bank has become the only Bangladeshi bank to feature in Forbes' inaugural "World's Top Performing Banks 2026" ranking, which listed the top 500 banks from 89 countries around the globe.

The US business magazine published the ranking, compiled in partnership with market research firm Statista, for the first time on 9 September, assessing banks based on their financial strength and performance.

According to Forbes, the ranking is based on objective financial data, drawing on information and research from leading data providers such as S&P Capital IQ, as well as data provided by the banks themselves.

The banks were evaluated across four key indicators: profitability, growth and earnings quality, capital and funding resilience, and asset quality and efficiency.

In addition, the banks were divided into six tiers based on their asset size.

Banks with assets exceeding $500 billion were classified as Tier 1 or global banks, while those with assets between $100 billion and $500 billion were placed in Tier 2 or large banks. Banks with assets between $50 billion and $100 billion were classified as Tier 3 or upper mid-size banks.

Banks with assets between $20 billion and $50 billion were placed in Tier 4, those with assets between $10 billion and $20 billion in Tier 5, and banks with assets between $3 billion and $10 billion in Tier 6.

BRAC, with 7,483 employees, ranked 73rd in Tier 5, the lower mid-size banks category, according to Forbes.

Established in 1999, BRAC Bank is currently led by Tareq Refat Ullah Khan, who serves as its managing director and chief executive officer.

Talking to TBS today (16 September), Tareq said, "This is a proud and meaningful milestone for BRAC Bank and Bangladesh. Being the first Bangladeshi bank to be featured in Forbes' 2026 list of the World's Best Banks, ranked 73rd among Lower-Middle Size Banks, is a recognition of our collective journey."

He also reaffirmed that they will remain firmly committed to building the Bank on the foundations of good governance, transparency and trust, while creating lasting value for our customers and the country.

"We are deeply thankful to our Board, customers, regulators and, above all, our colleagues across BRAC Bank, whose trust, dedication and hard work have made this recognition possible," added the managing director.

500 banks from 89 countries assessed on financial strength

BRAC Bank has been named the first and only Bangladeshi bank in Forbes' inaugural World's Top Performing Banks ranking, based on objective financial performance and balance sheet strength.

The ranking was prepared in partnership with market research firm Statista, a global data and business intelligence platform providing statistics, reports and insights across more than 80,000 topics, 22,500 sources and 170 industries.

The ranking used data from S&P Capital IQ, desk research and bank submissions, focusing on financial performance and balance sheet strength rather than customer surveys used in Forbes' previous rankings.

There are roughly 25,000 to 30,000 full-license commercial banks worldwide. Based on data availability and eligibility, 500 banks from 89 countries were selected for the final list.

The banks were assessed across four key dimensions: profitability, which carried a 30% weight; growth and earnings quality, 20%; capital and funding resilience, 25%; and asset quality and efficiency, 25%.

Why BRAC Bank earned the Forbes recognition

BRAC Bank's financial performance across these four dimensions placed it among the banks selected for the ranking.

On profitability, which was assessed using return on assets (RoA) and cost-to-income ratio, BRAC Bank's consolidated RoA stood at 1.67% in June 2026.

Its cost-to-income ratio, reflecting operational efficiency, stood at 42% during the same period.

On asset quality and efficiency, which considers credit quality, risk management and balance sheet resilience, the bank's non-performing loan (NPL) ratio stood at 2.03% in the first half of 2026.

BRAC Bank maintained Tk10,340 crore in regulatory capital, comprising Tier 1 and Tier 2 capital, which was the highest among Bangladeshi banks.

Its Capital to Risk-Weighted Assets Ratio (CRAR) stood at 15.81% in June 2026, above the minimum regulatory requirement of 12.5%.

For capital and funding resilience, assessed based on equity ratio and loan-to-deposit ratio, BRAC Bank's consolidated return on equity (RoE) stood at 21.52% in June 2026, while its advance and deposit ratio (ADR) stood at 59.94%.

On growth and earnings quality, which considers three-year earnings growth and stability as well as deposit growth, BRAC Bank recorded net profit after tax (NPAT) of Tk2,251 crore in 2025, representing around 57% year-on-year growth.

The bank's NPAT also increased 57% year-on-year to Tk1,423 crore in the six months ended 30 June 2026, compared with Tk906 crore in the corresponding period of 2025.

Its customer deposits reached Tk100,915 crore at the end of August 2026. The bank had achieved 29% year-on-year growth in customer deposits at the end of 2025 compared with the previous year.

BRAC Bank's international credit ratings also strengthened its standing, with a B+ rating from S&P Global Ratings and B2 from Moody's.

BRAC Bank falls under lower mid-size tier

Forbes grouped the banks into six asset-size tiers to enable comparisons among similarly sized institutions.

Tier 1 comprises banks with assets above $500 billion, Tier 2 includes those with $100–500 billion, Tier 3 $50–100 billion, Tier 4 $20–50 billion, Tier 5 $10–20 billion and Tier 6 $3–10 billion.

BRAC Bank falls under Tier 5, or lower mid-size banks, based on its total asset size.

The bank said the recognition is more than a global accolade and represents independent recognition of the underlying strength, quality and resilience of its financial performance.

It also said the recognition reflects the trust of its customers and the collective efforts of its colleagues, while encouraging the bank to continue building a stronger and more sustainable institution.

Country-wise representation

The final ranking includes 160 banks from the United States, including JPMorganChase, Wells Fargo, Bank of America, US Bancorp and PNC.

China has 26 banks on the list, including China Merchants Bank, Bank of Ningbo, China Construction Bank and Bank of China.

Among South Asian countries, India has 26 banks, including HDFC Bank, State Bank of India, Kotak Mahindra Bank, ICICI Bank and Axis Bank.

Pakistan has four banks: Allied Bank, MCB Bank, Meezan Bank and United Bank.

Sri Lanka has three banks: Commercial Bank of Ceylon, Hatton National Bank and Sampath Bank.

The Maldives has one bank, Bank of Maldives, while Nepal, Bhutan and Afghanistan have no banks represented in the ranking.

Beximco Pharmaceuticals is set to overhaul its board and sever a key link with its embattled sponsor group as the drug maker seeks to shield its business and investors from the political fallout surrounding Vice Chairman Salman F Rahman.
Mr Rahman has agreed to step down from the board after the company informed the Bangladesh Securities and Exchange Commission (BSEC) that his continued involvement could hamper business and shareholders' interests.

His departure would mark a significant shift in governance for one of the country's largest listed drug makers, whose corporate fortunes have increasingly been overshadowed by the legal and financial troubles that have entangled the Beximco Group, market operators said.

BSEC Executive Director and spokesperson Md Abul Kalam said Beximco Pharma had recently sent a letter to the regulator regarding the restructuring of its board.

However, he said the restructuring process would depend entirely on the company, including decisions on who would remain on the board and who would step down.

"When the appointment of independent directors comes before the regulator, the commission will examine whether the proposed candidates meet the criteria," Mr Kalam told The Financial Express.

Mr Rahman, former private industry and investment adviser to the Awami League government, has remained in custody since his arrest in August 2024 following the political changeover. He is currently under investigation by the Anti-Corruption Commission (ACC) in several money-laundering cases.

Mr Rahman's continued physical absence from board meetings has emerged as a concern for investors, particularly foreign investors, amid the changed political and regulatory environment.

The reconstituted board, as proposed by the company, would comprise three sponsor-group directors, four independent directors, one director nominated by IFIC Bank and the managing director as an ex-officio director, according to BSEC sources.

The securities regulator has reportedly responded positively to the proposed structure.

The new structure would have the sponsor group's representation reduced while the number of independent directors would increase amid investors' demand for stronger corporate governance and a greater distance from the Beximco Group.

Foreign shareholders, who hold a significant 26.90 per cent stake in Beximco Pharmaceuticals, reportedly supported Mr Rahman's removal from its board in the interest of the company.

Initially, the BSEC invited foreign investors to take board seats, but they declined, prompting the regulator to move towards increasing the number of independent directors, according to a BSEC official requesting anonymity.

Dual-listed on the London Stock Exchange's Alternative Investment Market (AIM), Beximco Pharma must subject all incoming directors to standard international due diligence. The vetting process is expected to take four to six weeks.

Governance key to investor confidence

Market operators said the key issue is not merely the departure of an individual director, but whether the reconstituted board can exercise greater independence, strengthen oversight and protect investors' interests.

Salim Afzal Shawon, head of research at BRAC EPL Stock Brokerage, welcomed the move, saying the proposed restructuring, if implemented properly, could help insulate Beximco Pharma's operating business from the wider group's governance and financial problems.

"The restructuring could send a positive signal to investors about the company's prospects, particularly if the new board can demonstrate greater independence, transparency and accountability.

"The key issue now is who will join the new board, attend board meetings physically and actively participate in decision-making," said Mr Shawon.

Company Secretary Mohammad Asad Ullah could not be reached for comment.

Earnings remain strong

The board restructuring comes at a critical time for Beximco Pharma. While the company has shown financial resilience, governance issues remain a major concern.

The company reported a profit of Tk 7.05 billion for the first nine months through March this year, up 34 per cent year-on-year, while revenue rose 13 per cent to Tk 41.42 billion during the period.

The drug maker's annual profit also jumped 19 per cent year-on-year to Tk 6.99 billion in FY25. The company declared a 47.5 per cent cash dividend for the year, compared with 40 per cent for the previous year.

Its earnings performance has stood in sharp contrast to the financial difficulties faced by some other entities within the Beximco Group, reflecting the strength and resilience of its core pharmaceutical business.

Unlike some group entities facing heavy debt burdens and liquidity pressure, Beximco Pharma has continued to generate strong revenue and profit from its operating business, supported by steady demand for medicines in both domestic and export markets.

London listing

The restructuring also carries additional significance because Beximco Pharma has an international investor base and is listed on the London Stock Exchange (LSE).

The foreign listing exposes the company to greater scrutiny by international investors, who typically place strong emphasis on transparency, board independence and timely financial reporting.

Meanwhile, trading in Beximco Pharma resumed on the LSE in June after a nearly six-month suspension due to the delay in the publication of its financial statements.

Beximco Pharma's stock closed at Tk 149.70 on Tuesday, gaining 1.42 per cent from the previous session at the Dhaka Stock Exchange.

Since taking office, the current government has taken various initiatives to revitalise the country's capital market.

In an interview with The Business Standard, Prime Minister's Special Assistant for Investment and Capital Market Affairs Tanvir Shahriar Ghani outlined the measures and talked about the country's overall investment environment.

Ghani expressed optimism that visible positive changes will emerge in the capital market within the next two to three months if these initiatives are implemented.
He said Bangladesh's capital market is heavily dependent on retail investors, while institutional investors account for a very small share. As a result, even minor developments can trigger panic in the market and lead to increased selling pressure.

"We are planning measures to increase the participation of foreign institutional investors and expand the involvement of domestic institutional investors. Taken together, we are working to build a better capital market in the future," he said.

Following the new government's assumption of office in February, the capital market returned to an upward trend, with significant changes in both the market index and trading activity.

Nearly four months after the new government took office, changes were made to the top leadership of the Bangladesh Securities and Exchange Commission (BSEC), the capital market regulator.
'Maximum focus on liquidity and institutional investor depth'

Tanvir Shahriar Ghani said the country's capital market faces numerous problems and obstacles at almost every stage.

"Steps have already been taken to remove these obstacles. An efficient team at BSEC is working on them. The finance ministry and Bangladesh Bank are also providing various forms of support. Everything will gradually become visible.

"Our maximum focus is on two areas: first, liquidity, and second, institutional investor depth," he said

"If we can address these two issues, many problems will be reduced, although it will take time," he added.

Ghani said Bangladeshi companies are highly leveraged, with some having negative equity. He said he has prepared a three-year action plan to help convert this negative equity into positive equity.

Ghani pointed out that the plan is not limited to any particular company but will apply to companies across all sectors.

Highly leveraged companies will be able to raise capital through preferred shares, warrants or initial public offerings (IPOs), reducing negative equity and returning to financial stability, he said.

He expects the capital market to grow exponentially.

"Our objectives are to bring foreign fund managers into the capital market and dramatically shift the composition of the investor base towards institutional investors," he said.

He also said the capital market would see greater product diversification, with derivatives and other products to be introduced. Work is also underway on a commodity exchange.
'Long-term projects must come to the capital market'

Ghani said there is currently a major mismatch in the country's bank lending system.

"Banks take deposits with one-year maturities but provide loans for projects with maturities of 12 years or more. This is a major mismatch.

"We are working to bring changes to this. Bangladesh Bank is also working on it. If long-term projects need to raise capital, they will have to come to the capital market," he said.

He said legal changes were being made to bring strong and fundamentally sound companies to the capital market.

"Experienced people have been appointed to the current commission. They are market-friendly and are continuously working on what can be done for the capital market," he said.

He said a lack of confidence remains a major issue in the country's capital market.

"If the measures the government is taking to develop the capital market can be implemented, confidence will increase," he said.

Previously, it took 18-24 months to approve an IPO. This will now be reduced to two to three months, he said.
'Investment-friendly environment essential'

Ghani said attracting foreign investment requires an investment-friendly environment, but there are numerous obstacles to creating such an environment.

"The government is taking initiatives to resolve these problems.

"To improve the investment environment, steps are being taken to address legal issues and obstacles related to the National Board of Revenue (NBR) and Bangladesh Bank. There will be significant improvements in these areas in the future," he said.

"The new government is extremely focused on making all organs of the government function properly and on trying to do the right things. If we can do these things, Bangladesh will be a miracle country, and a $1 trillion economy will really be possible," he said.

Ghani added that the government is taking initiatives every day to create a more investment-friendly environment. Discussions are also underway on which sectors should receive incentives and which incentives should be reduced so that investment in the country can increase.

According to latest statistics, the private-sector credit growth hit a historic low at 4.47 per cent in June and then edged up to 4.62 per cent by end of July last.

The growth had remained pegged below 5.0 per cent for consecutive five months as 4.72 per cent, 4.75 per cent and 4.98 per cent were recorded in March, April and May respectively.

The private credit growth stayed weak belying a number of financial and fiscal measures taken up by Bangladesh Bank (BB), including a Tk 600-billion stimulus package, to breathe life in the economic activity, and generate employment by way of reopening the stalled manufacturing bases across the country,

Even in the half-yearly monetary policy statement (MPS) for July-December, the central bank made a private-sector-credit-growth projection at 6.80 per cent by December.

To achieve the end, the regulator cut the policy rate by 50 basis points to 9.50 per cent on July 30.

Yet, the muted credit growth suggests that both demand for fresh loans and banks' willingness to lend remain subdued.

A Bangladesh Bank official has said the regulator has provided policy support to struggling borrowers, including a facility allowing them to regularise loans with a two-year moratorium after paying 2.0 per cent of their outstanding loans as a down payment.

The central bank later eased the payment requirement in February after many borrowers struggled to make the 2.0-percent payment. Under the revised arrangement, half of the stipulated amount has to be paid upon approval, with the remaining 50 per cent due within six months of the effective date.

"Despite these facilities, the credit growth for the private sector has not got momentum yet," the official said.

Such reluctance in investment credits is attributed to banks becoming more cautious amid higher non-performing loan (NPL) regime and private borrowers losing their credit appetite due to multiple anti-business factors, including energy crisis, prevailing global economic uncertainty due to geopolitical tensions, exchange-rate shocks, and higher inflation which is deemed not investment-friendly.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem says entrepreneurs have been battling hard to survive on the market under these prevailing desperate business and investment climates.

Terming the ongoing energy crisis a severe blow to businesses, the business leader says many factories have been struggling to continue production in the industrial belts.

"Under such circumstances, who dares to think of business expansion? I don't know how the growth (4.62 per cent) has happened and who are the borrowers? Will they be able to repay the loans? I have enough doubt," he adds.

According to BB data, the import growth for capital machinery and industrial raw materials became negative of 3.57 per cent and 5.78 per cent by the end of July.

NCC Bank Managing Director M Shamsul Arefin has observed that geopolitical tensions have made the global economy highly uncertain, with spillover effects on the domestic economy and local entrepreneurs. "In addition, the persistent energy crisis in industries is further aggravating the situation by disrupting industrial production."

NRBC Bank Managing Director and CEO Md Touhidul Alam Khan notes that increasing inflation, declining household incomes and weak export demand have significantly reduced market appetite.

At the same time, persistent gas shortages are forcing factories to operate well below capacity. "As a result, the opening of letters of credit (LCs) for trade has nearly come to a standstill."

He further notes that credit supply has also tightened as banks have become increasingly risk-averse. With non-performing loans surging to more than 32 per cent of total outstanding loans, banks are reluctant to extend fresh credits for fear of further defaults. Instead, financial institutions are channeling funds into relatively risk-free government treasury bills and bonds rather than lending to the private sector.

This has effectively deprived businesses of much-needed financing, underscoring the importance of recent central bank interventions to restore economic stability, he adds.

Policy Exchange Bangladesh Chairman M Masrur Reaz has mentioned multidimensional factors like numerous detrimental events -- Covid-19 pandemic, Russia-Ukraine war, volatile political transition after 2024 mass uprising, failure in regulatory policy enforcements and ongoing tension in the Middle East.

Apart from these, he said, the high inflation dampens market demand. It significantly reduced the industrial output. "And the ongoing energy crisis due to the local policy failure for more than 15 years worsens the situation further."

The economist also notes that the country's development expenditure and public investment in the last two fiscals (FY25 and FY26) were the lowest in recent years, which is another reason as these development works are executed by the private-sector entrepreneurs.

Houthi rebels in Yemen have rapidly advanced along the Red Sea coast in recent days, taking control of the vital port of Mocha and strategic islands near the Bab el-Mandeb Strait, raising fresh concerns over a key route for global shipping.

The strait is a major maritime chokepoint connecting the Mediterranean Sea with the Indian Ocean. With the Strait of Hormuz opening and closing intermittently this year, Bab el-Mandeb has become an increasingly important alternative route for oil, liquefied natural gas (LNG) and other goods moving through the region, reports The Conversation.

Saudi Arabia, in particular, has been diverting up to 64% of its oil exports through the East-West pipeline to the Red Sea port of Yanbu, from where the oil is shipped through Bab el-Mandeb.

Just days ago, drones struck the Saudi pipeline, pushing oil prices higher. The damage is expected to take weeks to repair. The attacks reportedly originated in Iraq and appeared to have been carried out by an Iranian-backed armed group.

For now, shipping through the Red Sea appears to be continuing largely unaffected. However, the latest escalation could have wider consequences as the conflict between the United States and Iran continues.

Another blow to oil markets

The Houthis' territorial gains add to pressure on Saudi oil exports. Their advance is part of Yemen's ongoing civil war between the Iran-backed Houthis and the Saudi-backed government, the Presidential Leadership Council.

Saudi Arabia was actively involved in a combined air and limited ground campaign against the Houthis from 2015 until a truce was reached in 2022. The fragile truce held until this year.

The Houthis have said Saudi vessels and the country's oil sector are direct targets. But countries across Europe, Asia and Africa also depend on goods moving through Bab el-Mandeb.

Mocha is about 75 kilometres north of the strait. From this strategic position, the Houthis could disrupt shipping in and out of Bab el-Mandeb.

Maritime traffic can be brought to a halt using relatively light asymmetric means, including drones, anti-ship missiles and fast attack boats.

Preparing for a long war

The Houthis' growing control over a vital Red Sea shipping route marks a significant development in the ongoing conflict involving the United States and Iran. It suggests the group, and by extension Iran, may be preparing for a prolonged confrontation with Washington.

Although Iran has not directly acknowledged involvement in the operation, the analysis cited by The Conversation argues that it is highly unlikely the Houthis would have acted without Tehran's approval. Iran and the Houthis now have significant leverage over two vital waterways for global shipping.

The timing and strategic importance of the gains also suggest the move was not coincidental, according to the analysis. It indicates Iran may be seeking to use its leverage to increase pressure on the global economy, the US and neighbouring countries.

Disruption becomes a new reality for global shipping

Global supply chains have become increasingly vulnerable to geopolitical disruptions.

Even before the US-Iran conflict began earlier this year, a 2025 UN Trade and Development report projected that shipping disruptions could continue until at least 2030, with rerouting becoming increasingly common.

The latest Houthi advance also points to an erosion of US influence over global shipping. US President Donald Trump said on 12 September that the Houthis had asked Washington not to intervene.

He also declined a request from the Saudi Crown Prince to join Saudi strikes against Houthi targets in Yemen.

As Bab el-Mandeb becomes increasingly dangerous, countries in the region are likely to step up efforts to develop road and rail routes for transporting goods out of the region.

However, building and fully operationalising such alternatives will take time, and they will not be able to handle the same volume of goods as maritime routes.

Meanwhile, higher fuel prices and rising inflation could put further pressure on the global economy, forcing it to adjust to a changing trade environment.

Europe could be drawn into the conflict

A complete closure of Bab el-Mandeb could draw European allies more directly into the US-Iran conflict, something they have so far sought to avoid.

European leaders have refused to join the US in a military blockade of the Strait of Hormuz or efforts to reopen the waterway by force. Trump has criticised European leaders for their reluctance to join the US war with Iran.

The situation is different in Bab el-Mandeb. The European Union is involved in protecting freedom of navigation in the Red Sea through a defensive maritime operation.

A prolonged crisis could therefore draw European countries more directly into confrontation with the Iranian-backed Houthis and potentially Iran.

Could the crisis escalate further?

The direction of the crisis will depend largely on the actions of Saudi Arabia and the Houthis in the coming weeks.

According to Houthi-controlled media, Saudi Arabia carried out air strikes this week on Mocha airport and other targets in Yemen.

If Saudi Arabia resumes an all-out bombing campaign, it would decisively break the 2022 truce with the Houthis.

Another key question is how far the Houthis will use their new strategic position around Bab el-Mandeb to target commercial vessels.

In August, the Houthis targeted a cargo ship in the Red Sea, killing six people.

Any further attacks on commercial vessels resulting in additional loss of life could trigger a response from Saudi Arabia, the EU and possibly the US.

The Insurance Development and Regulatory Authority (IDRA) aims to improve the claim settlement rate from 57 per cent as of June to at least 75 per cent, as it faces a mammoth volume of unpaid claims worth Tk 70 billion.
At a programme at the IDRA office in the capital on Monday, IDRA Chairman Mir Nadia Nivin said the regulator had adopted a two-pronged strategy to reach the goal by gradually clearing the backlog of unpaid claims. She, however, did not mention any timeframe within which the target will be achieved.

Under the strategy, she said, IDRA has been holding meetings with owners and chief executive officers of insurers to identify and resolve obstacles to claim settlement, including compliance-related issues. At the same time, it has been monitoring financially distressed insurers.

Monday's programme marked the second phase of a special claim settlement initiative, under which Tk 230.4 million in long-pending claims was paid to 5,868 policyholders of five life insurance companies.

The IDRA chairman, who took office in July this year, said quick settlement of long-pending legitimate claims was one of her top priorities. The initiative was aimed at protecting policyholders' rights and restoring discipline and public trust in the insurance sector, she added.

The payments were made possible by mobilising funds from various sources, including the sale of assets and encashment of security bonds of the insurers concerned.

Ms Nivin said IDRA was conducting one-to-one governance review meetings with insurance companies to determine why legitimate claims remained unpaid and what operational or compliance-related problems were delaying settlement.

"Some companies have ancillary and compliance-related problems," she said, adding that the regulator is working with relevant parties to resolve the issues quickly.

Of the country's 82 insurance companies, roughly eight life insurers are facing serious difficulties, and their failure to settle policyholders' claims on time has eroded public trust across the industry, according to the IDRA chief.

These seven to eight troubled life insurers are being dealt with separately, but IDRA's intervention is not confined to those companies.

"We have taken a holistic approach to improving claim settlement across the entire insurance sector," she said.

Companies facing moderate-level problems are also being brought under close supervision, with their financial capacity being reviewed and pressure applied to accelerate settlement of legitimate claims, she added.Banking Sector Analysis

Finance minister praises IDRA initiatives

Meanwhile, Finance and Planning Minister Amir Khosru Mahmud Chowdhury praised IDRA's ongoing reform initiatives during a visit to its office on Monday, particularly its efforts to strengthen governance, transparency and accountability in the insurance sector.

The minister welcomed the move to settle long-pending legitimate claims, saying payment of policyholders' rightful dues would help rebuild public confidence in insurance.

"Restoring policyholders' confidence is crucial to strengthening the insurance industry," he said, adding that visible steps were already contributing to rebuilding trust.

Mr Khosru also said the government was supporting IDRA in making insurance companies more effective, efficient and dynamic through the introduction of risk-based supervision.

He stressed that protecting the rights and interests of policyholders must remain a top priority, adding that customer complaint resolution and service-monitoring mechanisms should also be strengthened to ensure better protection for policyholders.

The minister underscored the need to increase public awareness of insurance, financial security and risk management, saying IDRA's initiatives should make insurance more accessible, understandable and trustworthy to ordinary people.

He praised the reform measures being pursued under the leadership of Ms Nivin and expressed hope that the reforms would make the insurance sector more robust, transparent and customer-centric, enabling it to play a greater role in the national economy.Stock Market Updates

IDRA steps up claim settlement

In the second phase of the claim settlement initiative, Padma Islami Life Insurance paid around Tk 120 million to 3,600 policyholders.

Homeland Life Insurance settled claims worth Tk 49.8 million for 1,145 policyholders, while Fareast Islami Life Insurance paid Tk 50 million to 580 policyholders.

Sunflower Life Insurance paid Tk 5.53 million to 300 policyholders, and Sunlife Insurance settled Tk 5.01 million in claims for 243 policyholders.

The second-phase payments followed the first phase, executed on September 3, when IDRA facilitated the settlement of claims worth Tk 145.1 million for 2,549 policyholders of seven life insurers.

The first phase covered policyholders of Baira Life, Fareast Islami Life, Golden Life, Homeland Life, Padma Islami Life, Progressive Life and Sunflower Life Insurance.

The latest move is part of IDRA's broader effort to address the sector's chronic claim settlement problem, which has left thousands of policyholders waiting for years to receive legitimate dues.

The IDRA chairman said the effort to pay policyholders back would continue, and the remaining valid but unpaid claims would be verified and scrutinised before being settled.

Moody's Ratings has revised Bangladesh's sovereign outlook to stable from negative, citing easing political and external pressures, stronger foreign exchange reserves and record remittance inflows.

The rating agency, in its latest assessment released today (15 September), affirmed Bangladesh's long-term issuer and senior unsecured ratings at B2 and its short-term issuer ratings at Not Prime.

Moody's said the risks that had prompted the negative outlook had become more balanced at the B2 rating level.

It said the post-election transition and the government's strong mandate had reduced the risk that political uncertainty would derail reforms.

Bangladesh's external position has also strengthened, supported by higher foreign exchange reserves, a more flexible exchange rate regime and record remittances that have helped offset increased energy import costs, the agency said.

Continued engagement with the International Monetary Fund (IMF) and other international financial institutions remains an important anchor for external financing and reforms, although discussions are still under way over the terms of a successor IMF programme.

Reserves strengthen, growth recovery gradual

Bangladesh's foreign exchange reserves had risen to around $32.9 billion by mid-2026, equivalent to more than four months of import cover, from about $21.4 billion at the end of 2024.

Moody's attributed the improvement to record remittances increasingly flowing through formal banking channels, the more flexible exchange rate regime and the removal of earlier market distortions.

The agency expects economic growth to recover gradually. Real GDP growth rose to 4.1% in FY2026 from 3.5% in FY2025 and is projected to reach 4.3% in FY2027 before accelerating to around 4.9% from FY2028 as investment and industrial activity normalise.

Inflation, however, is expected to remain around 9% before easing gradually.

Banking sector remains key weakness

Despite the improved outlook, Moody's retained Bangladesh's B2 rating, citing the country's narrow revenue base, weak debt affordability and significant vulnerabilities in the banking sector.

The agency said reforms had revealed system-wide non-performing loans of around 32.8%, while banks would require recapitalisation equivalent to around 10% of GDP to restore regulatory capital adequacy.

Such a requirement could place a significant burden on the government because of limited fiscal space and growing reliance on domestic bank financing, Moody's said.

Banking-sector liquidity, meanwhile, has remained stable, with system-wide deposits growing by around 12% year-on-year to March 2026. This suggests the sector's main weakness is solvency rather than liquidity, according to the agency.

Narrow revenue base constrains fiscal strength

Moody's said Bangladesh has one of the narrowest government revenue bases among rated sovereigns, limiting its fiscal flexibility.

Interest payments absorb close to 30% of government revenue, even though government debt remains relatively moderate at around 40% of GDP.

The agency expects debt to rise gradually over the medium term because of persistent primary deficits and potential costs associated with supporting the banking sector.

Continued access to concessional financing should nevertheless help contain borrowing costs and refinancing risks, it said.

Energy, LDC graduation pose risks

Energy supply constraints remain a risk to Bangladesh's growth prospects, Moody's said.

A recent disruption at an LNG import terminal exposed vulnerabilities in the country's energy supply system and caused shortages affecting power generation, industry and fertiliser production.

The agency also warned that Bangladesh's graduation from least-developed-country (LDC) status in the coming years could put pressure on export competitiveness and access to concessional financing.

The ready-made garment (RMG) sector is expected to remain a key pillar of exports, supported by Bangladesh's competitive position. Sustained structural reforms, however, will be needed to realise the country's longer-term growth potential.

What could change the rating?

Moody's said faster-than-expected progress in addressing banking-sector weaknesses, stronger revenue mobilisation, and improvements in institutions and policy effectiveness could create upward pressure on the rating.

Conversely, a material crystallisation of banking-sector liabilities on the government's balance sheet, a weaker growth or fiscal outlook, reduced access to external financing or renewed political instability could put downward pressure on the rating.

When Finance Minister Amir Khosru Mahmud Chowdhury unveiled this fiscal year’s budget, he offered good news to compliant taxpayers, particularly those who file returns early.

“All categories of taxpayers will be able to file returns throughout the year. Those who submit returns early in the year will receive tax incentives,” he told the parliament.

But there is a catch. Taxpayers who have already cleared their full income tax liability before June may be excluded from the new 5 percent early-filing incentive.

This has raised questions about fairness among taxpayers, practitioners and former officials of the National Board of Revenue (NBR).

Under Finance Act 2026, individuals filing between July 1 and September 30 qualify for an incentive equal to 5 percent of tax payable, or Tk25,000, whichever is lower. The problem lies in the phrase “tax payable”, rather than “total tax liability”.

Consider a taxpayer with a final liability of Tk5 lakh who has already paid it in full through advance tax or tax deducted at source (TDS).

When the taxpayer files, there is no tax payable left after adjustments, leaving little scope for the incentive. Another taxpayer with the same liability but an outstanding balance at filing time could receive the full Tk25,000.

Tax practitioners say the provision could discourage the very taxpayers it is meant to reward.

Meanwhile, another taxpayer with an identical liability but an outstanding balance at filing time could pocket the full Tk 25,000.

“If the objective is to encourage voluntary compliance, taxpayers who have already paid their taxes should not be placed at a disadvantage,” said Sabbir Ahmed, tax practitioner and president of the Institute of Chartered Accountants of Bangladesh.

“There should be a distinction between encouraging late taxpayers to file early and rewarding taxpayers who have already demonstrated compliance,” he said.

The issue is particularly relevant for salaried employees, whose taxes are often deducted at source throughout the year, and taxpayers who pay advance tax against expected liability, since such payments are later adjusted against final liability.

Former NBR member Syed Md Aminul Karim said the provision raises questions about equity.

“The person who has been a good taxpayer and has already paid the tax earlier, he is the loser. And the person who has not paid, he is the gainer. This raises a question of equity,” he said.

Aminul said the issue could be addressed through a clarification in the relevant circular rather than a legal amendment.

“The law does not necessarily have to be changed. The explanation in the circular needs to be changed,” he said.

“Those who regularly pay their taxes are facing a disadvantage. I think this is a mistake. It should be corrected,” he added.

Snehasish Barua, director of SMAC Advisory Services Limited, said the provision could particularly disadvantage salaried employees whose taxes are fully deducted at source and deposited with the government.

“Those who work in compliant companies have 100 percent of their tax deducted and deposited into the government treasury,” he said. “So you are effectively penalising the compliant taxpayers and incentivising the non-compliant.”

He suggested calculating the incentive on gross tax liability rather than net payable amount.

“This should have been based on the gross amount, because you are not giving more than Tk25,000 anyway. Since it is based on the net amount, it is creating discrimination here,” he said.

The NBR introduced the incentive as part of changes to the return-filing framework for individual taxpayers, following repeated extensions of filing deadlines.

Under the new provision, returns filed between October 1 and December 31 will face neither incentive nor additional tax.

Those filed between January 1 and March 31 will attract additional tax of 2 percent of payable tax or Tk 3,000, whichever is higher. For returns filed between April 1 and June 30, the additional tax rises to 5 percent of payable tax or Tk 5,000, whichever is higher.

An official involved with the budget process said the new provisions need to be read together to understand the incentive and advance tax requirements.

“Whatever advance tax is payable has to be paid by June. If not, there will be additional interest on the unpaid portion,” the official said. “Suppose a person has Tk 100 tax payable. If he pays Tk 90 by June, he will pay simple interest on the remaining Tk 10.”

Asked whether the provision raises a fairness issue for taxpayers who have already paid in full, the official said, “We are ensuring fairness in this area,” adding that the issue would become clearer when the relevant provisions are considered together.

Another tax official, speaking on condition of anonymity, said the original plan was broader.

“Initially there was a plan on the whole tax liability. But it was curtailed by the high-ups,” the official said, adding that there was currently no option to address the issue unless the tax law was amended.