The bilateral relations between Bangladesh and China have been elevated to a Comprehensive Strategic Cooperative Partnership (CSCP) because of expanding two-way trade and strategic reasons, Commerce Minister Khandakar Abdul Muktadir said yesterday.

Seventeen important agreements have been signed recently between the two countries, under which various projects -- including the modernisation of Mongla Port and the establishment of a Chinese economic and industrial zone in Chattogram -- are being implemented. Muktadir made these remarks as a panellist at a policy dialogue held during the 11th Belt and Road Initiative (BRI) Summit in Hong Kong.

He also said that Invest Bangladesh has taken an initiative to establish the country’s first overseas investment office in China as part of efforts to strengthen investment ties with the country.

Describing Hong Kong as one of Bangladesh’s important commercial gateways, the minister said Bangladesh must leverage Hong Kong’s role as a bridge between mainland China and global markets.

He said the global economy of the future can be strengthened not through isolation, but through mutual cooperation, sustainable development, and an open trading system.

Speaking at the session on “Building Resilient Trade and Investment Frameworks in a Diverse Global Landscape,” the minister also said that for developing countries like Bangladesh, economic resilience is not merely about responding to crises.

Rather, it means creating a system capable of adapting to global changes while generating employment and new opportunities, according to a statement from the commerce ministry.

Referring to the preparations for graduation from the least developed country (LDC) category, Muktadir said Bangladesh is now moving towards growth driven by productivity, innovation, and competitiveness.

Four areas are being given particular priority to achieve this goal. These include export diversification, development of connectivity infrastructure, attracting productive investment, and a green economic transition.

Alongside ready-made garments, Bangladesh is working to integrate pharmaceuticals, leather and leather goods, agro-processing, light engineering, information technology, and man-made fibre industries into global value chains.

The minister said Bangladesh welcomes investment that can facilitate technology transfer, skills development, and the integration of local industries into international supply systems.

Under the BRI framework, he noted, there are significant opportunities for partnerships in economic zones, logistics, and renewable energy.

He also emphasised expanding digital trade, cross-border e-commerce, and digital payment systems to connect small and medium-sized enterprises, women entrepreneurs, and local businesses with global markets.

Calling for future trade and investment frameworks to be made more environmentally sustainable in response to climate change, he said low-carbon production, sustainable logistics, and green infrastructure would form the foundation of the future economy.

In his speech, the minister emphasised export diversification, investment in productive sectors, and stronger sustainable partnerships to address global challenges such as geopolitical instability, supply-chain disruptions, and climate change.

Bangladesh has also highlighted the need to expand regional and global connectivity while building a green and inclusive economic framework to maintain competitiveness in a changing global economy.

Since the political changeover in August 2024, Bangladesh has experienced significant political and social changes. Under the interim government, uncertainty remained over policy direction and the predictability of administrative procedures. It was certainly not an easy business environment for foreign companies.

Yet Japanese companies continued their operations. More importantly, some even announced new investments or business expansions during this period. One reason may be that Japanese companies do not assess Bangladesh solely on the basis of short-term political developments. They are looking beyond the immediate political risks: the country’s large population, rising income levels, competitiveness as a production base and the expansion of its domestic market. In other words, they are looking at what Bangladesh could become over the next 10 or 20 years.
Bangladesh is gradually becoming more than a low-cost production base for Japanese companies. It is also a country where they see potential for future sales and business growth.

The 2025 JETRO Survey on Business Conditions of Japanese Companies Overseas provides some evidence. Of the Japanese companies surveyed in Bangladesh, 50 percent expected to be profitable in fiscal 2025, while 56.9 percent said they planned to expand their business over the next one to two years. At the same time, 94.4 percent identified political and social instability as an investment risk. These figures suggest an interesting contrast: Japanese companies are clearly aware of the risks, yet many continue to see opportunities for expansion.

The reason is not simply low labour costs. Bangladesh offers Japanese companies an established business base today, while its large population, rising incomes and expanding domestic demand offer the possibility of a much larger market tomorrow. In this sense, Bangladesh is gradually becoming more than a low-cost production base for Japanese companies. It is also a country where they see potential for future sales and business growth.

From this long-term investment perspective, the establishment of the Invest Bangladesh authority is an important development. On August 20, the government brought the Invest Bangladesh Act, 2026 into effect through a gazette notification, merging BIDA, BEZA and the PPP Authority into a new organisation. This is an important step towards consolidating investment promotion functions.

However, this merger does not mean that Bangladesh’s investment administration has become a unified system. Institutions such as BEPZA and Bangladesh Hi-Tech Park Authority (BHTPA), which also play important roles for investors, remain outside the new organisation. Moreover, the issues faced by investors do not end with investment promotion agencies. They may need to coordinate with various government agencies on matters ranging from work permits to tax, customs and foreign-exchange regulations.

This is why I believe the potential role of Invest Bangladesh goes beyond managing the three organisations brought together under the new authority. It could become a coordinating “control tower” that addresses cross-government issues from the investor’s perspective.

For example, information submitted by an investor could be shared across relevant agencies. Digital procedures could also create clear records of applications and decisions, reducing room for different interpretations by individual officials. The real objective should not simply be to create “one organisation”, but to create “one administration from the investor’s perspective”.

Japanese companies have continued to see Bangladesh’s long-term growth potential. If the new organisation can play this cross-government coordinating role and improve the investment experience for companies, it could further strengthen that long-term confidence.

The Invest Bangladesh authority has the potential to make Bangladesh’s investment administration simpler, more transparent and more predictable from the perspective of businesses. That is a development worth watching closely.

The number of women working in Bangladesh's banking sector continues to rise, but their representation in senior positions remains comparatively low, according to a Bangladesh Bank report.

At the end of January-June this year, the number of female officers and employees at 61 scheduled banks stood at 35,971, up 910, or 2.60%, from the previous six-month period.

The findings were published in the central bank's semi-annual report on gender equality by its Sustainable Finance Department.

According to the report, the 61 scheduled banks had a total workforce of 2,17,818 employees at the end of January-June 2026. Women accounted for 35,971 of them, or 16.51% of the total workforce.

In July-December 2025, the number of female employees in the banks was 35,061, meaning their number increased by 910 in six months.

Among different categories of banks, private commercial banks employed 23,524 women, accounting for 16.12% of their 145,898-strong workforce.

State-owned commercial banks employed 9,471 women, representing 17.06% of their total workforce – a higher proportion than that of private commercial banks.

Foreign commercial banks had a comparatively smaller number of female employees, with 931 women working across nine banks. However, they had the highest proportion of women in their workforce, at 24.81%.

Women's representation remains low at senior levels

Despite the increase in the overall number of female employees, women's representation in senior positions remains relatively low, the report found.

During January-June, women accounted for 13.14% of bank board members. Their representation was 16.99% at entry-level positions and 16.37% at mid-level positions.

In contrast, women accounted for only 10.55% of employees at senior-level positions.

This means women's representation remains lower at senior levels than at entry and mid-level positions.

Age-wise, the data showed stronger participation among younger female employees. Women accounted for 21.10% of employees aged below 30, compared with 11% among employees aged above 50.

The report also showed that the employee turnover rate among female workers in the banking sector stood at 13.87% during January-June.

Banks take initiatives to support women employees

Banks have taken various initiatives to improve the working environment for female employees.

According to the report, all scheduled banks provide six months of maternity leave for female officers and employees.

All banks also have policies on preventing sexual harassment and raising awareness about the issue.

Of the 61 scheduled banks, 37 have established childcare facilities, either independently or jointly, for the children of female employees.

In addition, 36 banks have their own transport facilities to help female employees commute after designated working hours.

During January-June 2026, 49 scheduled banks organised awareness training on gender equality.

The Bangladesh Bank report said that although women's participation in the banking sector is increasing, there is still scope to improve their representation in senior positions.

The central bank is encouraging banks to take various initiatives to create a supportive working environment for female employees and ensure greater gender equality in the banking sector.

How much oil is flowing through the Strait of Hormuz? Traders, energy executives and government officials are all trying to figure it out – but are reaching wildly different conclusions. It is, however, increasingly clear that this mystery has introduced a residual risk premium into crude prices that could remain deeply entrenched for months.

Benchmark Brent crude futures breached $100 a barrel on Wednesday for the first time since July 24 as ​escalating attacks in the Middle East, including on tankers, stifled hopes of a normalisation of oil shipping in the region.The narrow waterway between Iran and Oman has become the focal point of the conflict amid competing US and Iranian blockades.

Before the war erupted in February, flows through the world’s most important energy artery were largely taken for granted. While never perfect, flow estimates were remarkably reliable, even after accounting for Iran’s longstanding practice of switching off tanker transponders to evade Western sanctions.

For years, the consensus barely changed: Hormuz transited roughly 20 million barrels per day, equivalent to about one-fifth of global oil consumption. That certainty has disappeared.

Today, ​armies of analysts, along with increasingly sophisticated AI systems, are sifting through vast streams of information to determine how much oil is actually moving through the strait. Satellite imagery is cross-checked against port records, tanker drafts, loading ​schedules, refinery receipts and vessel-tracking data to reconstruct movements previously monitored in near real time.

The challenge has become exponentially harder because of the surge in “dark crossings,” when tankers switch ​off navigation and identification systems while approaching, transiting or leaving the strait. A US request for commercial satellite firms to delay imagery from the Gulf has further clouded the picture.

As a result, nobody can say with confidence exactly how much ​oil is flowing through Hormuz on any given day.

There are growing signs that Iran’s grip on the strait may be weakening. Months of tit-for-tat military exchanges have degraded Tehran’s radar systems and strike capabilities near Hormuz. US demining operations and a ​growing US-protected shipping corridor along Oman’s coast have allowed more vessels to enter and leave the Gulf.

The multi-billion-dollar question is how many vessels?

This uncertainty was highlighted by conflicting estimates from the Trump administration.

US Energy Secretary Chris Wright said on September 2 that more than 17 million barrels transited the strait on August 31 under US Navy supervision, a figure that would represent the highest level recorded since the war began. The claim left traders and analysts scratching their heads.

More than a week later, ship-tracking firm Kpler, which uses satellite imagery, transponder ​signals, port logs and commercial shipping intelligence, suggested that perhaps only 6 million barrels crossed Hormuz that day.

Kpler estimates crude flows through Hormuz in August averaged only around 4.3 million barrels per day, rising to nearly 5 million bpd ​during the first six days of September. It also notes that transits appear to have fallen sharply in recent days.

One possible explanation is that the administration is including exports from the United Arab Emirates’ Fujairah terminal, located outside the strait and supplied by Abu Dhabi’s ​bypass pipeline. Moreover, ​a single day’s observation says little about broader trends.

Wright admitted as much, saying on Sunday that flows through Hormuz were averaging more than 9 million bpd, though he did not specify the period.

That would be in line with Kpler’s estimates when Hormuz flows are combined with exports moving through alternative routes that bypass the strait.

To complicate matters further, tankers can remain dark for days or even weeks before and after crossing the strait, so actual volumes could ultimately prove to be significantly higher than current estimates suggest.

The new Hormuz may therefore be carrying half its pre-war volumes, or it may be carrying considerably more. That caveat illustrates the broader problem.

For perhaps the first time in modern oil market history, ​participants cannot accurately measure flows through the world’s most important ​energy corridor. The consequences extend far beyond academic debates over ​tanker movements.
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Oil prices are supposed to reflect fundamentals. Yet it is difficult to assess fundamentals when one of the world’s largest supply arteries has effectively disappeared from view. In effect, uncertainty itself has become a fundamental.

The result is a persistent risk premium that is likely to remain embedded in prices for months. Clarity is likely to improve only with a resolution ​to the US-Iran stand-off. But whether that resolution is closer or farther away remains an open question.

Iran’s economy has come under severe strain after months of war, especially ​since Washington imposed a blockade on ​Iranian exports on July 14 and ratcheted up sanctions. The Trump administration likely aims to use economic pain to bring Tehran back to the negotiating table. But Iran’s clerical leadership continues to demand sanctions relief and maintains hopes of eventually collecting fees from ships crossing the strait.

Moreover, Iran retains the capacity to disrupt maritime traffic. Iran-linked forces have targeted 27 vessels since early July, according to the United Kingdom Maritime Trade Operations (UKMTO). The Islamic Republic has also vowed to announce a new restricted zone in the ​Gulf in coming ​days.

In other words, more uncertainty.

Philosophers have long asked: If a tree falls in a forest and nobody hears it, does it make a ​sound? In today’s oil market, the equivalent question is whether a tanker crossing the Strait of Hormuz can influence global supplies if nobody can see it. The answer is far from obvious.

A fresh US$81.68-million capital is going to be funneled into Janata Bank's UAE operations to avert wind-down of its business following persistent capital-shortfall-triggered regulatory restrictions on its reserve accounts.

To this effect, the Financial Institutions Division (FID) Tuesday sent to the Finance Division a letter seeking approval for the government bailout for the state-owned bank's overseas outfit, sources said Wednesday.

Earlier, the UAE central bank had threatened to freeze Janata Bank's UAE operations and force a three-year wind-down of the business over its persistent capital shortfall, sources said.

The fund will be sourced from Janata Bank's head office in Dhaka and routed through its local office to the United Arab Emirates.

Contacted, an official of the Finance Division said, "We are working on the issue and necessary approval would be issued shortly."

Janata Bank's UAE operations have been running for 52 years since 1974 and currently it operates four branches and a chief executive office, making it the second-largest foreign bank in the UAE by branch count.

The bank serves roughly 70,000 depositors, 3,800 loan and advance customers, and close to one million remittance senders.

In 2021, the Central Bank of the UAE (CBUAE) raised the minimum capital requirement for foreign banks from AED 40 million to AED 400 million.

Janata Bank's UAE unit had paid-up capital of only AED 100 million, plus AED 83 million in retained earnings, well short of the new threshold, even though it had repatriated no profits in the intervening time while trying to build up capital.

Citing the persistent shortfall, the CBUAE imposed restrictions on debit transactions from Janata Bank's reserve accounts held at the central bank, effective July 8, 2026.

A week later, on July 15, the UAE regulator formally asked Janata Bank to begin a rollback to be completed within three years and appoint an administrator.

The CBUAE warned that failure to appoint an administrator and start wind-down proceedings by September 14, 2026 would lead to a permanent freeze of the bank's reserve accounts and the appointment of an administrator by the authority.

Bangladesh's ambassador to the UAE met the CBUAE assistant governor on August 18 to seek a resolution.

The ambassador recommended that the Finance Ministry pledge an AED 2.0-billion capital injection and that Janata Bank immediately meet the AED 100-million minimum capital requirements per branch.

The UAE operations' CEO informed the authorities on September 1 that the CBUAE would begin the winding-down process on September 8 and review progress on the administrator appointment and other compliance measures.

In a September-6th letter to the FID, Janata Bank Chairman Md Fazlur Rahman said the board, at its 900th meeting on September 5, 2026, had decided that the UAE operation was profitable and "should not be closed in national interest".

An official of Janata Bank who deals with the issue has said, "We hope to send capital to the UAE unit of state-owned Janata Bank by the deadline set by the CBUAE."

The closure of Janata Bank's UAE operations could disrupt banking services for around 70,000 depositors, one million remittance customers and 3,800 borrowers, while putting nearly Tk 9.0 billion in outstanding loans at risk of turning non-performing, according to an assessment by the bank's board.

The board's assessment, cited in a letter, warns that shutting down the UAE operations would also disrupt a major formal channel for remittances to Bangladesh.

Janata Bank currently channels an estimated Tk 80 billion to Tk 100 billion in remittances annually from the UAE, the assessment said.

"A closure could disrupt formal remittance flows and affect sales of the government's Wage Earners' Development Bond and dollar bonds.

"The UAE accounts for around 70 per cent of current CIP (remittance) recognitions," the assessment reads.

The board has warned that closure could damage the bank's international reputation, too, jeopardise correspondent banking relationships (RMA) and affect head-office trade-finance operations.

The three-year winding-down would also incur costs for asset disposal, customer liabilities, staff separation, contract termination and IT relocation, while the head office could have to cover administrator fees, salaries and legal expenses.

It could also affect the government's Probashi Card programme, for which Janata Bank has first-phase distribution responsibility in the Middle East.

Against this backdrop, the board approved transferring US$81.68 million (AED 300 million) from head-office assets into the UAE operations as capital, subject to government and central-bank approval.

It also approved a commitment letter to the CBUAE and a request to the Finance Ministry for the full AED 2.0-billion capital injection recommended by the Bangladesh ambassador.

The board further approved a request for ministry assistance to meet the capital shortfall, with all correspondence cleared for dispatch under the chairman's signature.

The FID's approval on Tuesday cleared the immediate AED300-million tranche, which officials say would meet the CBUAE's per-branch minimum capital requirement and avert the September-14th deadline for initiating formal rollback.

The securities regulator has widened the scope of investment for directors, officers and employees of stock exchanges and market operators while retaining restrictions on their direct investment in stocks.

According to a new directive issued by the securities regulator, the officials concerned will be allowed to invest in non-convertible bonds, government securities, open-end mutual funds, exchange-traded funds (ETFs) and real estate investment trust (REIT) funds. ETFs and REIT funds, however, are yet to be introduced in Bangladesh's capital market.

Previously, the investment scope was limited to open-ended mutual funds for the targeted group.

The directive covers directors, officers and employees of stock exchanges, Central Depository Bangladesh Ltd. (CDBL), Central Counterparty Bangladesh Ltd. (CCBL), Bangladesh Institute of Capital Market (BICM) and Bangladesh Academy for Securities Markets (BASM).Online newspaper subscription

BICM and BASM have also been brought under the restriction in the latest directive, extending its application to organisations involved in capital market education, training and professional development.

The commission imposed restrictions on their direct investment in shares to prevent conflicts of interest and address concerns over the possible misuse of market-sensitive information by employees of capital market institutions, said Md Abul Kalam, executive director and spokesperson of the Bangladesh Securities and Exchange Commission (BSEC).

The restriction is particularly relevant and important for employees who have access to sensitive information relating to trading, clearing, settlement, depository operations, corporate actions or other market activities before such information becomes widely available.

The move is part of a broader effort to strengthen professional conduct and market integrity rather than merely restrict employees' personal investments, said Mr Kalam.

"The change therefore combines tighter restrictions on direct investment in listed securities with a wider scope for investment in fixed-income and diversified products," he said, adding that the restriction applies to BSEC officers and employees as well, with the directive having come into effect last week.Bangladesh economic report

The broader coverage indicates that the regulator is seeking to establish a common standard for individuals working across the capital market ecosystem, market operators said.

A DSE official, requesting anonymity, said the officials concerned and their dependents — sons, daughters, fathers and mothers — were previously not even allowed to open beneficiary owner's (BO) accounts.

Under the latest directive, however, they will be allowed to open BO accounts solely for investing in non-convertible bonds, government securities, open-ended mutual funds, ETFs and REIT funds.

The exemption of diversified investment vehicles reflects an attempt to strike a balance between preserving personal investment rights and securing market integrity, said Akramul Alam, head of research at Royal Capital.

The inclusion of BSEC officials means that the regulator itself is also subject to the investment restrictions.

"Even when there is no actual misuse of information, the public perception that an employee can benefit from privileged access to information may undermine confidence," said Mr Alam.

The BSEC's latest order is expected to reduce the scope for potential conflicts between institutional responsibilities and personal trading interests, he added.

Enforcement key to effectiveness

Market participants said the effectiveness of the directive would ultimately depend on proper monitoring and enforcement.

"Restrictions on paper are not enough. The regulator needs an effective monitoring and disclosure mechanism to ensure compliance," said a stockbroker, preferring anonymity.

Effective enforcement would require coordination among the BSEC, stock exchanges, brokerage firms, depository and other relevant market institutions.

The BSEC spokesperson said the commission would monitor the investment accounts of the individuals concerned and ensure that prohibited transactions do not take place.

"If the regulator finds any investment beyond the approved instruments, it will take action in accordance with the securities rules," he said.

The country has no fertiliser shortage and will have a surplus of 1.584 million tonnes against demand during the upcoming Rabi and Boro seasons, State Minister for Local Government Mir Shahe Alam told parliament yesterday (9 September).

Demand for urea, TSP, DAP and MOP from October to February 2027 is projected at 3.587 million tonnes, against a prepared supply of 5.171 million tonnes. "So, there is no reason for farmers to panic over fertiliser," he said.

Opposition lawmakers, however, disputed the assessment, saying adequate stocks on paper are not reaching farmers when needed. They blamed dealer irregularities, artificial shortages, black-market sales and poor management.
Govt cites supply, production

State Minister for Commerce Md Shariful Islam said the government is maintaining production, imports and buffer stocks to ensure uninterrupted supplies.

In the current fiscal year, 2,08,799 tonnes of urea have been produced and 1,17,899 tonnes imported, while 5,30,925 tonnes have been distributed and 409,000 tonnes remain in stock, he said.

Production at several factories has been suspended due to gas and raw-material shortages. However, the Ghorashal-Palash and Shahjalal Fertiliser plants are operating normally, while Chattogram Urea Fertiliser is expected to resume production soon.
'Fertiliser exists, proper management does not': Jamaat MP

Jamaat MP Shafiqul Islam said the main problem was poor management, not stocks. Citing media reports, he said farmers are struggling to buy fertiliser at fair prices. In Joypurhat, dealers are allegedly charging Tk300-Tk400 more per bag, with some farmers paying Tk500-Tk800 above the official price.

He also alleged that Tk10-Tk12 lakh is being traded for dealer appointments, with a syndicate bypassing lists prepared by local administrations or elected representatives.

Citing illegal stockpiles seized in Kurigram and an incident in which farmers broke into a warehouse, Shafiqul said field-level supplies were far from normal. He warned that failure to ensure supplies before Boro could revive a situation similar to the BNP's previous government.

Jamaat MP Md Mahbubul Alam said farmers in his constituency are buying fertiliser on the black market despite adequate government stocks.

He criticised the removal of MPs from fertiliser and seed monitoring committees. MPs had served on district- and upazila-level committees since 2009, but a 27 August circular removed all 349 MPs, he said.

Mahbubul proposed replacing the dealer system with an open market, creating union-based digital demand maps, distributing fertiliser through farmers' digital IDs using OTP or QR codes, and digitally tracking supplies.
Govt blames dealer gaps

Mir Shahe Alam said around 3,759 dealers appointed under the previous government were absconding, leaving dealer points vacant. The government plans to appoint around 4,918 new dealers.

Between 29 August and 6 September, 204 mobile courts took action in 22 fertiliser-related incidents, imposing Tk35 lakh in fines. He said MPs need not be on monitoring committees, as dealers should distribute fertiliser under existing rules.

State Minister for Fisheries and Livestock Sultan Salahuddin Tuku said there is no shortage and dismissed allegations of corruption over new dealership applications.

Good and promising RMG companies should tap the capital market for long-term financing to diversify their funding sources and reduce heavy reliance on bank loans, speakers at a workshop said on Wednesday.

They said greater access to equity and debt financing could help Bangladesh’s ready-made garment (RMG) companies expand business, create jobs and contribute to economic growth.

The speakers made the remarks at a workshop titled “Expanding RMG’s Financing Horizons: Opportunities in the Capital Market,” jointly organised by the Dhaka Stock Exchange (DSE) and Swisscontact at the DSE Training Academy.

Senior officials of leading member companies of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), top officials of the DSE and merchant bankers attended the event.Subscribe To News

Speaking at the opening of the workshop, DSE Managing Director Nuzhat Anwar said the capital market was not merely a platform for investment but an important source of long-term financing for economic growth and private-sector expansion.

“The capital market should not be limited to IPOs or the equity market; rather, it should expand opportunities for various forms of financing, including bonds,” she said.

Although discussions on developing an effective bond market had continued for years, recent initiatives by the current commission and relevant stakeholders created fresh opportunities to advance the sector, she said.

She called for reviewing policy and regulatory constraints to make capital-market financing more effective, including the use of IPO proceeds and refinancing opportunities.

“The main goal of such discussions is to identify the existing limitations of the capital market based on the needs and practical experiences of entrepreneurs and take effective initiatives to resolve them,” added Ms Anwar.

BKMEA Deputy Secretary Md Harunur Rashid said industrial enterprises remained largely dependent on banks, limiting the ability of many businesses to fully utilise their growth potential.Bangladesh economic report

“The capital market can be an effective alternative source of long-term financing,” he said.

Listing good and promising companies would support business expansion, create employment and accelerate economic growth, Mr Rashid said.

He, however, stressed the need to ensure sustainable business growth after listing to maintain investor confidence.

Swisscontact Progress Project Team Leader Farzana Amin said the organisation had been supporting the RMG sector for nearly two decades and that capital-market financing should be considered alongside bank loans.

Swisscontact plans to provide end-to-end support to RMG companies interested in accessing the capital market, she said.

The organisation aims to develop several RMG companies as role models within the next year to encourage other businesses to seek financing from the capital market, she added.

Bangladesh Merchant Bankers Association (BMBA) President and LankaBangla Investments CEO Iftekhar Alam outlined opportunities for raising long-term capital through IPOs and the structural challenges facing the capital market.

He discussed the listing process, including eligibility for main-board IPOs and qualified investor offers (QIOs) on the SME platform, company valuation, fund utilisation, subscription, share allotment and lock-in requirements.

Bidowra Tahmin Khan, team leader of Swisscontact’s INSPIRE Project, said Swisscontact would provide advisory and technical assistance in coordination with the DSE, Bangladesh Securities and Exchange Commission (BSEC) and other stakeholders to help promising RMG and textile companies access the capital market.

Swisscontact has been working with Bangladesh's RMG and textile sector for around 20 years, focusing on compliance, skills development and the green transition, she said.

Bangladesh Bank has appointed an administrator and two associate administrators to oversee the resolution process of listed non-bank financial institution Fareast Finance and Investment Limited, amid efforts to ensure its smooth and effective implementation.

The central bank appointed its Director Md Sadequr Rahman as administrator, supported by Additional Directors Shadril Ahmed and Md Al-Amin as associate administrators, according to a disclosure published today (8 September).

All three officials formally assumed their respective roles on 9 August, the disclosure said.

The appointment follows Bangladesh Bank's decision to declare Fareast Finance alongside three other non-bank financial institutions (NBFIs) as non-viable under the Bank Resolution Act, 2026.

Following Bangladesh Bank's non-viable declaration and administrator appointments, both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) suspended trading of Fareast Finance shares. Fareast Finance and Investment got listed on the stock exchange in 2013.

Its current paid-up capital Tk164 crore divided by 16.40 crore shares. Market capitalisation of the NBFI stood at Tk34.46 crore until 8 September with Tk18.91 crore free-float capitalisation of the company.

Until September 2025, the company had incurred a loss of Tk61 crore, compared with a loss of Tk84.18 crore in 2024.

According to DSE data, sponsor-directors held a 39.74% stake in the listed firm, while institutional investors held 14.77% and general investors held the remaining 45.49%.

The Dhaka Stock Exchange (DSE) is set to introduce a web-based platform to automate and integrate the creation and redemption of open-end mutual fund units, aiming to make mutual fund investments more accessible and transparent for investors.

The proposed system was unveiled at a workshop hosted by the DSE on Monday. The platform will be accessible through both desktop and mobile applications, allowing investors across Bangladesh to participate more conveniently in open-end mutual fund transactions.

Under the proposed framework, stockbrokers will act as selling or dealing agents for asset managers, assisting investors in purchasing and redeeming fund units. All sales and redemptions will be executed at prices determined by the respective asset managers, in compliance with the Bangladesh Securities and Exchange Commission (Mutual Fund) Rules, 2025.

BSEC Commissioner Nafeez Al Tarik, who attended the workshop as chief guest, praised the DSE initiative, saying the platform would play an important role in developing the mutual fund industry and delivering greater benefits to investors.

DSE Managing Director Nuzhat Anwar said the initiative is part of the exchange's broader efforts to modernise capital market infrastructure and encourage portfolio diversification.

"Developing this platform marks a major step toward making mutual fund investments simpler, more convenient, transparent and technology-driven," she said.

DSE General Manager (Market Development) Saied Mahmud Zubayer gave a detailed presentation on the proposed system and its operational framework at the workshop.

The proposed platform is expected to bring the buying and redemption process for open-end mutual fund units into a more integrated digital environment, potentially reducing operational complexities for investors, brokers and asset managers.

The Dhaka Stock Exchange (DSE) Brokers Association (DBA) has urged the stock exchange to avoid what it called "unnecessary harassment" of brokerage houses, particularly in cases where inspections or investigations could disrupt their normal business operations.

The association made the request at a meeting with the DSE today (8 September), where members of the DSE board were present. The meeting discussed recent inspections of brokerage houses and their potential impact on the capital market.

Market participants said nearly 100 brokerage firms have come under investigation over the past one and a half years. Of these, around 8 to 10 brokerage firms were reportedly inspected or investigated last week.

DBA President Saiful Islam told TBS that the association does not oppose investigations by the Bangladesh Securities and Exchange Commission (BSEC) or the stock exchange.

"We do not want unnecessary harassment of brokerage houses. The aggressive approach taken by the stock exchange in investigating brokerage houses has had a negative impact on the market, which is not desirable," he said.

He said routine investigations were necessary and that appropriate action should be taken if any brokerage house was found to have committed irregularities.

"Routine investigations can take place. If any brokerage house has committed an irregularity, it should be appropriately punished. But it should not be done in a way that creates a negative impact on the market," he said.

Saiful said several brokerage houses have recently faced investigations, and the way these incidents have come into the public domain has negatively affected both the concerned firms and the broader capital market.

"Investigations should be conducted in a tolerable manner so that there is no disruption to business activities. We should not feel stressed, and there should be no damage to the market," he said.

DSE's position

Responding to concerns over excessive intervention in brokerage houses, the DSE chairman said the exchange's board does not interfere in the day-to-day activities of its Regulatory Affairs Department. Instead, the board provides policy-level guidance.

He said the DSE would investigate or conduct inquiries into specific matters when there is information indicating particular irregularities.

The DSE chairman also urged member firms to resolve any shortages in their CC accounts, shares or other assets on their own initiative and without delay.

Such shortages not only affect the operations of the concerned firms but also damage the reputation of the capital market's overall ecosystem, he said.

"To make the market more disciplined, transparent and aligned with international standards, all stakeholders must properly perform their respective responsibilities. Through collective efforts, it is possible to take Bangladesh's capital market to a new height within the next five years," he said.

He also called on member firms to share their problems, concerns, recommendations and new ideas with the DSE, saying the exchange wants to make its market-development initiatives and future activities more effective based on the practical experiences and views of its members.

Why recent inspections were conducted

The DSE said some compliance and surveillance inspections from 2025 remained unresolved and needed to be completed through the submission of reports to the BSEC.

The recent inspections of brokerage houses were conducted as part of the process of completing those outstanding inspections, it said.

Participants at the meeting also stressed the need for clear and specific criteria for determining abnormal trading.

They said high trading volumes in a particular period should not, by itself, be considered an irregularity. Instead, assessments should take into account the nature of the transactions, their impact on share prices, the investor's financial capacity and the instructions given for the trades.

Saiful Islam said the concerns of brokerage houses were discussed in the presence of the DSE board, which he said agreed with the points raised by the DBA.

He added that the DSE managing director assured the association that such problems would not recur in the future.

Bangladesh’s mobile network quality mostly met regulatory standards in July, but a long-delayed assessment by the Bangladesh Telecommunication Regulatory Commission (BTRC) found significant differences between operators’ reported figures and the regulator’s own measurements.

The assessment compared Quality of Service (QoS) data reported by the country’s four mobile operators -- Grameenphone, Robi, Banglalink and Teletalk -- with network data collected by the BTRC.

It was BTRC’s first QoS assessment in more than four years and the first to publish network performance data at national, district and upazila levels.

However, both BTRC and industry officials said the assessment used data from the regulator’s Telecom Monitoring System (TMS), rather than standard drive tests.

The two methods differ in how they measure network quality, collect data, select samples and cover different areas. Industry officials said TMS data may not always reflect customers’ experience, especially when operators have different levels of network coverage and different customer bases.

The assessment report found that most operators met key national benchmarks. However, differences between operators’ reported figures and BTRC’s measurements, the lack of raw data and uneven performance across locations raise concerns.

TELETALK MISSES TWO 4G STANDARDS

Teletalk was the only operator to fall below regulatory standards on two major 4G indicators in July.

Its 4G Radio Resource Control (RRC) success rate was 98.49 percent, below the required 99 percent. Its 4G data non-retainability rate was 0.64 percent, higher than the permitted 0.5 percent.

RRC success measures how often devices successfully connect to a 4G network, while non-retainability measures unexpected data disconnections.

BTRC could not independently verify Teletalk’s figures because its raw or binary files were incomplete. The report repeatedly marked the data as “Incomplete raw/binary file from Teletalk” at national, district and upazila levels.

Teletalk’s performance also varied sharply across locations. Its 4G RRC success rate met the regulatory standard in only 12 of the 64 measured upazilas. At the upazila level, just 136 of 537 measurements met the requirement.

Despite these weaknesses, Teletalk reported an average 4G download speed of 11.20 Mbps, well above the minimum requirement of 3.50 Mbps.

Its CSFB success rate -- the rate at which 4G devices successfully switch to older networks to make voice calls -- was 99.64 percent.

GRAMEENPHONE MEETS STANDARDS

Grameenphone remained within BTRC’s required standards, although the assessment found differences between some of its reported figures and the regulator’s measurements.

BTRC recorded Grameenphone’s 2G call drop rate at 0.33 percent, exactly matching the company’s figure. Its average 4G download speed was 8.23 Mbps, compared with 8.22 Mbps reported by the operator.

The largest gap was found in the VoLTE (voice over long-term evolution) call drop rate. BTRC measured it at 0.38 percent, while Grameenphone reported 0.04 percent. Both figures were below the regulatory limit of 0.5 percent.

Grameenphone’s CSFB success rate was 98.65 percent, above the required 98 percent.

The assessment also found notable differences in some upazilas, particularly in Bandarban and Rangamati.

Tanveer Mohammad, Grameenphone’s chief corporate affairs officer, said that improving QoS was an ongoing process and that the company remained committed to enhancing the customer experience.

“Grameenphone has met all BTRC QoS criteria in its latest reports, except in some areas of the Hill Tracts, where we are working to improve the network,” he said.

ROBI DATA FACES VERIFICATION PROBLEM

Robi also faced data and network quality challenges during the assessment.

BTRC measured Robi’s average 4G download speed at 6.85 Mbps. This was the lowest among the operators whose data BTRC could independently verify, but it was still above the 3.50 Mbps minimum.

Robi’s 2G call setup success rate was 99.29 percent, only slightly above the 99 percent benchmark. The assessment also found differences between Robi’s reported figures and BTRC’s measurements in several locations.

BTRC could not independently verify data from 41,819 Robi cells because the required raw or binary files were unavailable.

As operators generally keep such files for only seven days, BTRC used Robi’s processed data instead. The regulator said the problem would be addressed from the following month through daily data reconciliation.

Robi’s Chief Corporate and Regulatory Officer Shahed Alam, questioned the use of TMS data alone to assess network quality.

He said the results could be affected by the number and geographical spread of measurements. As a result, operators with limited coverage or smaller datasets could appear to perform better than those operating wider networks with more traffic and customers.

“Comparing operators solely based on TMS-derived QoS figures can lead to misleading conclusions,” he said.

Shahed also said there was no established international regulatory practice of using TMS data alone to determine or compare overall QoS.

“The credibility of any QoS assessment depends on the methodology, measurement coverage, sampling framework, transparency and representativeness of the underlying data,” he said.

BANGLALINK SHOWS MOST CONSISTENT RESULTS

Banglalink recorded the most consistent results across the key indicators measured by BTRC.

The regulator measured its 2G call setup success rate at 99.73 percent and its average 4G download speed at 8.61 Mbps.

Its 2G call drop rate was 0.36 percent, while its 4G RRC success rate was 99.84 percent. Its CSFB success rate stood at 99.19 percent and its SMS completion rate at 99.81 percent.

At the national level, the differences between Banglalink’s reported figures and BTRC’s measurements were generally small.

However, the assessment found that six upazilas, including several in Bandarban, had “No Service” on both 2G and 4G networks.

Bangladesh's benchmark DSEX index could reach the 10,000-point mark by the end of 2027 as the economy moves from stabilisation to recovery and eventually acceleration, according to Capital Alliance (CAL), a frontier-markets-focused investment bank.

In its recent published Bangladesh Macro Outlook 2026-30 report, titled "Shifting Gears," CAL projects around 70% upside in the benchmark index from its late-July 2026 level of 5,896 points. The forecast is based on a combination of stronger corporate earnings, improving macroeconomic stability, monetary easing and a potential re-rating of the stock market.

CAL Bangladesh, a part of the CAL Group incorporated in the UAE with roots in Sri Lanka, previously received a Trading Rights Entitlement Certificate (TREC) from the Dhaka Stock Exchange to conduct stock-market operations under the brokerage firm named ACL Securities Limited.

The report, which tracks more than 450 macroeconomic and market indicators, argues that Bangladesh does not need an economic miracle to achieve the target. Rather, a return to historical growth patterns, combined with improving investor confidence, could drive the market higher.

Despite the bullish outlook, CAL has identified several risks. Global energy shocks could keep inflation elevated and delay interest-rate cuts, while unresolved banking-sector capital problems could limit the financial system's ability to fund economic expansion.

Domestic energy shortages could also prevent industries from fully utilising their existing capacity.

Earnings growth and valuation re-rating

CAL expects corporate earnings to rebound by 26% year-on-year, supported by higher revenues as real incomes recover, improved operating margins as companies utilise spare capacity, and lower finance costs as interest rates decline.

The investment bank also expects the market's price-to-earnings (P/E) multiple to rise from around 10.4 times currently to 14 times by end-2027.

According to CAL, the combination of higher earnings and a higher valuation multiple could provide the main fuel for DSEX to reach 10,000 points.

The report identifies three key drivers behind the expected acceleration: demographic expansion, productivity gains and monetary easing.

Bangladesh is adding around 11.5 lakh workers annually, with the working-age population growing by about 1.5% a year. CAL predicts that by 2030, the number of households in the middle-income category – defined here as those earning more than $325 per month – will rise by 28%, reaching 1.5 crore households.

This expanding consumer base is expected to support demand for consumer goods and services.

At the same time, Bangladesh has significant unused industrial capacity. Companies invested heavily in FY23, but production remained constrained by energy shortages and high borrowing costs. As these pressures ease, companies could increase output without immediately undertaking substantial new capital expenditure, improving profitability through operating leverage, according the report.

Monetary policy is another key factor. Bangladesh Bank delivered its first policy-rate cut in six years in mid-2026, and CAL expects the easing cycle to continue.

The 364-day Treasury bill rate, which has remained above 12%, is projected to fall to 7.7%-8.5% by June 2027, according to the report. Lower borrowing costs are expected to support private-sector credit and investment.

Macro stability and consumer boom

CAL believes Bangladesh has largely moved beyond the correction phase of 2023-25. Money growth has been restrained, while inflation has fallen more than three percentage points from its peak.

The country's balance of payments has also returned to surplus and the foreign exchange market has stabilised, creating a more favourable backdrop for investment.

CAL expects the taka to remain relatively stable against the US dollar, reaching Tk125-Tk127 per dollar by June 2027, implying depreciation of only 1.5%-3.2%.

A more stable currency could also encourage foreign portfolio investors to return to Bangladesh's capital market after staying on the sidelines amid currency volatility and the previous floor-price regime, the report added.

The report also projects Bangladesh to become the world's ninth-largest consumer market by 2030, surpassing economies such as Germany and the UK. Per-capita GDP is expected to reach $4,000, supporting a shift from unbranded goods towards trusted and premium brands.

CAL said much of the infrastructure needed to support this consumption-led expansion is already in place or nearing completion. Electricity-generation capacity, for example, is expected to rise from 12.4GW to 28GW, while major infrastructure projects such as Dhaka Metro Rail and the third terminal of Hazrat Shahjalal International Airport are supporting economic activity.

CAL nevertheless maintains its "Accumulate Stocks" recommendation, arguing that these risks are more likely to affect the timing of the recovery than its overall direction.

The report concludes that investors who position themselves before the recovery becomes fully visible could benefit from the market's next phase of growth.

One morning in August 2025, a Turkish textile giant walked into BIDA, exploring Bangladesh for its first overseas factory. Until then, Egypt had been its default choice. After discussing Bangladesh’s market, workforce, incentives and industrial zones, the company was more interested. Then came a simple question: “Can you show us which plots are available?”

We paused. That sat with a different agency. The investor asked, “But you just heard our whole story. Do we really have to start again with someone else? How annoying.”

This experience reflects the confusion investors have faced for years -- fragmented roles, duplicated functions and multiple desks for the same investment journey. Investors have long asked for one focal point, one front office.

That is where Invest Bangladesh came from.

The idea was shaped by feedback from investors, business associations, think tanks and policy papers calling for the agencies to be unified. Bangladesh has also had multiple national-level investment promotion bodies with overlapping mandates. That is why the creation of Invest Bangladesh became one of the priorities under the government’s 180-day plan. Invest Bangladesh formally began its journey on August 20, 2026, bringing BIDA, BEZA and PPPA under one apex investment development agency.

The significance is the combination of capabilities.

Investment promotion and facilitation, policy coordination, economic zone development and PPP capability can now sit within one institutional framework. The agency can remain with an investor throughout the investment lifecycle, from opportunity identification and location selection to approvals, implementation, aftercare and expansion. The investor should be able to bring the project to one platform instead of first trying to understand the government organogram.

The Invest Bangladesh Act, ratified by the parliament, introduces capabilities that are easy to overlook. The new agency has a mandate to facilitate the transfer or privatisation of state-owned assets. Bangladesh has over a hundred government assets that are either non-operational or loss-making despite having valuable land, facilities or infrastructure. The new structure creates a pathway to bring these assets into commercial use.

“One-stop service” has been used so loosely in Bangladesh that, for an investor, it can sometimes feel like “many stops”. Multiple agencies operate their own platforms, while interoperability remains limited and manual service delivery continues alongside digital systems.

The new Act addresses this more directly: one central platform, mandatory integration of relevant services and, over time, a transition away from parallel manual processes. This is critical if digitisation is to reduce investor touchpoints rather than replicate them online.

The Act allows sector experts and specialists to enter the institution at different levels, including leadership roles. This can help Invest Bangladesh operate as the private-sector-facing arm of government, translating investor feedback into policy intervention.

This is not the first rodeo.

Our predecessor, BIDA, was created over a decade ago through the merger of two institutions. The intent was right, but execution exposed important gaps. The organisational structure took years to finalise, while legacy rules and ways of working continued under a common name.

A sustainable merger needs more than a new signboard. It needs a common purpose, integrated systems, aligned people and clear accountability. Those lessons must shape this transition.

But will it solve everything? The answer is no; it will not.

Invest Bangladesh is not a silver bullet. It is a back-office integration designed to make the investor experience simpler, faster and more coherent. The direction is clear: the investment ecosystem is moving towards simplification, and policymakers are beginning to walk the talk on reform. The next job is harder: making sure execution is flawless, and investors actually feel the difference.

The writer is the head of Business Development at Invest Bangladesh

Bangladesh’s economic activity fell to a 23-month low in August, reversing July’s rebound, as exports weakened and energy disruptions weighed on manufacturing and services, according to the latest Purchasing Managers’ Index (PMI).

The headline Purchasing Managers’ Index (PMI) fell 7.9 points month-on-month to 49.9 in August, its weakest reading since September 2024.

The index, jointly developed by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB), last month dropped below the 50-point threshold that separates expansion from contraction.

The decline follows a sharp rise in July, when the index gained 4.9 points to 57.8 on a strong rebound in manufacturing alongside continued growth in agriculture and services.

Manufacturing had led July’s expansion, jumping 16.6 points to 65.4 – the strongest turnaround in the survey’s history. It reversed sharply in August, falling 18.0 points to 47.4.

New export orders, output, input purchases, imports and employment all fell back into contraction, while input prices continued to rise at a faster pace.

Services, which had expanded for 22 consecutive months, also slipped into contraction, falling 6.8 points to 49.2.

New business and business activity continued to grow but at slower rates, while employment contracted sharply.

In contrast, agriculture remained a bright spot, extending its expansion for the 12th straight month by rising 1.3 points to 56.5 in August from 55.2 in July.

Construction, which had stayed marginally in contraction throughout July at 49.3, moved into expansion in August, reaching 52.4.

Meanwhile, the Future Business Index, which had shown strong optimism across all sectors in July, indicated a slight decline in sentiment in August.

“The August PMI reading of 49.9 indicates that Bangladesh’s economic activity remained broadly near the neutral threshold, despite temporary pressures on manufacturing and services,” said M Masrur Reaz, chairman and CEO of PEB.

“Agriculture continued expanding, while construction returned to growth, highlighting underlying economic resilience.”

He said the moderation in manufacturing partly reflected weaker monthly exports and temporary energy disruptions associated with LNG infrastructure maintenance.

He added that improved energy availability, stronger export demand and supportive measures to restore business confidence could help the economy regain momentum.

Bangladesh and Australia on Tuesday discussed various bilateral and multilateral issues, including cooperation in trade, investment, energy, labour mobility, and regional and global issues.

Australian High Commissioner to Bangladesh Susan Ryle, who paid a courtesy call on State Minister for Foreign Affairs Humaiun Kobir at his office, reaffirmed that Australia will continue to support Bangladesh regarding vocational training and health issues.

The envoy said Australia will always be with Bangladesh in resolving the Rohingya crisis as well.

She also mentioned that Australia and Bangladesh are closely cooperating at the UN and other international forums, said the Ministry of Foreign Affairs.

State Minister Humaiun sought closer cooperation and collaboration between Australian TAFE (Technical and Further Education) institutions and our Technical Training Centres (TTCs), as well as in training for Bangladeshi caregivers.

He praised Australia's continued support in addressing the Rohingya humanitarian crisis and hopes to continue working closely with Australia towards a sustainable solution to this prolonged crisis.

The country's premier bourse returned to negative territory today (8 September), erasing early intraday gains as subdued investor confidence and macroeconomic headwinds prompted a wave of profit-taking.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) dropped by 28 points, or 0.50%, to settle the session at 5,539.

The day's trading was characterised by significant volatility. The market opened on a positive note, carrying forward the bargain-hunting momentum from the previous day's late-session rally, which pushed the benchmark index to an intraday high of 5,628.63 points.

However, the optimism was short-lived. As the session progressed, selling pressure intensified, dragging the index to an intraday low of 5,536.98 points before it closed near that level.

According to market analysts at EBL Securities, the capital market failed to sustain the previous day's buying spree as broad-based sell-offs resumed. Subdued investor confidence, fuelled by persistent concerns over the national energy crisis and uncertainty ahead of the corporate earnings season, outweighed optimism over potential regulatory support.

Despite the high trading volume, the textile sector fell 1.7%, while ceramics and general insurance also ended lower. Services and real estate was the lone gainer, edging up 0.4%.

Sheltech Brokerage Limited said the fragile sentiment led to heavy distribution in the late session, reflecting a preference among investors to lock in whatever gains remained.

Market participation remained relatively low, although turnover on the DSE rose marginally by 3% to Tk590 crore from the previous session. Market breadth turned sharply bearish, with 252 issues declining, 83 advancing and 61 remaining unchanged.

The textile sector dominated turnover, accounting for 30.3% of total trading, followed by general insurance at 13.5% and pharmaceuticals at 9.2%.

Despite leading turnover, the textile sector fell 1.7%. Ceramics and general insurance also ended lower, while services and real estate was the lone sector to gain, edging up 0.4%.

Individual stock performance was highlighted by Envoy Textile, Malek Spinning, and Sharp Industries, which were among the most traded stocks of the day.

In the gainers' list, Sunlife Insurance topped the chart with a 6.32% rise, followed by Atlas Bangladesh, GQ Ball Pen, and Envoy Textile.

Conversely, Saiham Textile emerged as the top loser, shedding 9.74% of its value, followed closely by Prime Textile, Reliance One Mutual Fund, and Malek Spinning.

The bearish sentiment was not entirely mirrored at the Chittagong Stock Exchange (CSE), where the key indices managed to eke out marginal gains.

The Selective Categories' Index (CSCX) inched up to 9,131 points, while the All Share Price Index (CASPI) rose by 8 points to settle at 14,927. Turnover at the port city bourse saw an 8% surge, reaching Tk20 crore.

Bangladesh's trade deficit widened in July, the first month of the current fiscal year, mainly due to higher imports of petroleum products and fertiliser, while exports declined.

The trade deficit rose to $2.09 billion in July, compared with $1.5 billion in the same month of the previous fiscal year, according to balance of payments data released by the Bangladesh Bank yesterday (8 September).

According to BoP data, imports grew by 8.6% in July, while exports declined by 1.9%. As imports exceed exports, the trade deficit widens.

Petroleum product imports amounted to $1.37 billion in July, up from $750 million in the same month a year earlier, representing an increase of more than 83%.

Meanwhile, fertiliser import costs rose also by 50% to $187 million in July, compared with $125 million a year earlier.

Dr Zahid Hussain, former lead economist at the World Bank's Dhaka office, said a single month's balance of payments data was not enough to draw any significant conclusion.

"However, the trade deficit has widened because imports increased while exports declined. The deficit was also lower in the same period of the previous fiscal year," he said.

Current account surplus

Bangladesh's current account surplus stood at $64 million in the first month of the current fiscal year, down from $125 million in the same month of the previous fiscal year.

The surplus declined despite higher remittance inflows, mainly because the trade deficit exceeded $2 billion. However, the key factor keeping the current account in surplus was the strong inflow of remittances.

Bangladeshis working abroad sent home $2.86 billion in remittances in July, compared with $2.48 billion in the same month a year earlier. This represents a 15.4% year-on-year increase in remittance inflows.

Dr Zahid Hussain said the current account remained in positive territory because of the rise in remittances.

"The current account could have gone into deficit because of the large trade deficit, but the increase in remittance inflows prevented that," he said.

Financial account turns negative

The financial account recorded a deficit of $677 million in July, compared with a deficit of $746 million in the same month of the previous fiscal year.

The financial account had remained in surplus until June of the previous fiscal year.

Dr Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management (BIBM), said the main reason for the financial account deficit was a $536 million net deficit under deposits, money and banking-related flows (DMBs and NBDCs).

"This means payments to overseas banks increased, resulting in higher outflows of funds from the country," he said.

In July of the previous fiscal year, this component had recorded a surplus of $53 million.

Bangladesh Bank data show that the negative financial account pushed the overall balance of payments into deficit.

Global diesel supply will remain tight due to a lack of spare refining capacity, Russia’s ban on exports and the approach of peak winter demand, senior industry executives said on Tuesday.

The wars in Ukraine and Iran have impacted refineries in Russia and the Middle East, pushing diesel margins to record levels in Europe and the US, while reducing crude supplies to Asia.

“There’s really a shortage of products because we’re missing 2 million barrels a day from Russia, and we’re missing nearly 2 million barrels a day from the Middle East,” Vitol CEO Russell Hardy told the APPEC conference on Tuesday.

Hardy said crude is in a better supply position than products as the Middle East is exporting about 9 million bpd of crude and 1 million bpd of products.

“We’re still not running enough refining capacity to prevent those draws,” he said.

“We keep eating into the surplus that exists around the world, and we’re pretty much at the bottom of our stockpiles.”

Mark Senn, senior vice president of global trading at Phillips 66, said most US refineries were already running flat out.

“When you’re looking forward to a winter season coming where diesel stocks are quite deficit, you’re setting up for an environment where that strength could continue in those markets,” he added.

US diesel prices jumped to record highs late last week, while the product’s crack spread, a measure of refining profitability, surged to a record intraday high of $108.02 a barrel on Wednesday.

Vitol’s Hardy said high prices and the lack of available fuel supplies are expected to reduce global oil demand by about 1.5 million bpd in 2026 versus 2025.

He added that the gap between China’s crude imports in 2025 and 2026 at 5 million to 6 million bpd is unsustainable and he expects the gap to narrow towards the end of the year so China will have sufficient fuel for winter.

Amid the ongoing energy crisis and a strong government push for renewables, industrial conglomerates Walton and PRAN-RFL are establishing local manufacturing units for solar inverters and lithium-ion batteries. Walton is also planning a dedicated solar panel manufacturing facility.

The initiatives aim to reduce import dependency and build an end-to-end domestic solar power supply chain, officials from both business groups told The Business Standard.

Simultaneously, the two groups plan to invest in small, medium, and large-scale solar power projects nationwide under a capex model – supplying equipment while providing operation and maintenance services to public and private sector clients.

According to officials from the Prime Minister's Office and both conglomerates, the projects gathered momentum following a 1 August meeting with private-sector entrepreneurs, where Prime Minister Tarique Rahman urged businesses to invest heavily in renewable energy.

PRAN-RFL's manufacturing and generation expansion

Kamal Kamruzzaman, marketing director at PRAN-RFL Group, stated that work has commenced on a $1 million solar inverter manufacturing plant at Palash in Narsingdi.

"The plant is expected to begin production within three to four months, with a capacity to manufacture up to 1,000 inverters monthly in the 1kW-5kW range alongside storage batteries," Kamruzzaman said. He added that PRAN-RFL plans to establish a second inverter facility in Habiganj with an investment of approximately $4 million.

PRAN-RFL has invested around Tk100 crore in solar energy to date, generating 40MW. It aims to scale generation capacity to 100MW by the end of this year.

"We have aligned our investments to meet 100% of PRAN-RFL Group's electricity demand from solar power by FY28," Kamruzzaman noted. By then, the group's total demand is projected to reach 250MW, with solar generation capacity planned to match or exceed that requirement.

Once local production begins, PRAN-RFL intends to expand its installation and maintenance services for third-party commercial and residential clients, as well as compete for government projects through public tenders.

Walton steps up production capabilities

Walton has commenced setup of a solar inverter manufacturing plant at Chandra, Gazipur. It has also completed a lithium-ion battery plant, which is slated to begin commercial production within a month, according to Md Nazmul Islam, executive director and head of Electrical and Renewable Energy at Walton Group.

Walton currently imports ARC inverters from China as an original equipment manufacturer (OEM), branding them locally.

In a written response, Walton confirmed that setting up local lithium-ion battery, solar inverter, and solar panel production facilities is designed to build domestic resilience, lower carbon emissions, and generate industrial employment.

$15m inverter imports annually

In a solar power system, photovoltaic cells in solar panels convert sunlight into direct current (DC) electricity. An inverter converts the DC electricity into alternating current (AC), which can power household appliances and feed surplus electricity into the national grid.

Bangladesh currently has no local solar inverter production. Most inverters are imported from China, Japan and India, with annual imports worth around $15 million. According to the NBR, Bangladesh imported 429.4 tonnes of solar inverters between December and May.

Lithium-ion batteries store electricity generated by solar panels for use when sunlight is unavailable. Systems ranging from household rooftop installations to large solar plants can store daytime generation for use at night or during peak demand.

To encourage local manufacturing, the government has reduced duties on imported raw materials for inverters, batteries and solar panels to 1%. By contrast, commercial imports face duties of around 28% on inverters, 63% on solar panels, and 29% on batteries.

The government has also set a target of generating 4,000MW of solar power by the end of this year and 10,000MW by 2030. It has recently announced a net-metering system under which solar power producers will be able to sell surplus electricity to the national grid at Tk10.50 per unit, including an additional profit incentive.

End-to-end support

Industry stakeholders expect demand for solar panels, inverters and lithium-ion batteries to rise amid power shortage, government incentives, and duty concessions. Although households have installed solar panels for years, limited maintenance and after-sales services have discouraged wider investment.

Walton and PRAN-RFL now plan to offer end-to-end support to individuals and businesses interested in installing solar power systems. Under the model, customers will finance the investment while the companies will install the plants and provide maintenance if contracted. Customers can also maintain the systems themselves.

The groups are also seeking opportunities to build solar power plants for government agencies. They will have to compete through public tenders to secure such projects.