The Cabinet yesterday (7 September) approved a proposal to provide duty and tax waiver facilities for the import of machinery and spare parts for renewable solar power generation.

The approval came at a Cabinet meeting held at the Cabinet Room of parliament complex with Prime Minister Tarique Rahman in the chair, according to a Cabinet Division press release.

Under the approved proposal, machinery and spare parts imported for setting up renewable solar power plants will be exempted from customs duty beyond 1%, entire regulatory duty, supplementary duty, value-added tax (VAT), advance tax and advance income tax for 180 days from the date of issuance of the notification.

The government expects the measure to help meet electricity demand by facilitating faster expansion of renewable solar power generation, while reducing the difficulties caused by power shortages and supporting uninterrupted industrial production.

The Cabinet also approved a proposal to amend a notification on the minimum price of low-tier cigarettes under the Value Added Tax and Supplementary Duty Act, 2012.

Under the amendment, the maximum retail price of low-tier cigarettes will be reset at Tk65 or above per 10 sticks, replacing the existing threshold of Tk 62 or above.

The amendment is also expected to help reduce illegal cigarette trade and revenue losses.

In another decision, the Cabinet approved a proposal to sign a Promotion and Protection of Investment Agreement between Bangladesh and Hong Kong.

The agreement is aimed at strengthening existing economic ties between the two sides and attracting new investment, particularly in sectors such as garments and textiles.

According to the proposal, the agreement will help ensure necessary security and protection for investments by both sides and contribute to industrialisation, employment generation, technology and knowledge transfer, and increased production capacity.

The agreement will remain valid for 10 years, while a provision has been included allowing both sides to amend it three years after its signing.

The agreement is also expected to establish an effective institutional framework to increase foreign investment flows between Bangladesh and Hong Kong.

Oil prices extended gains on Monday as tit-for-tat strikes between the US and Iran on vessels sailing in the Strait of Hormuz and other areas heightened concerns of a prolonged supply disruption from the Middle East.Brent crude futures climbed 79 cents, or 0.82 percent, to $97.07 a barrel by 0512 GMT while US West Texas Intermediate crude was at $92.28 a barrel, up 80 cents, or 0.87 percent.
Brent rose 7.8 percent last week while WTI gained nearly 10 percent after the US and Iran resumed attacks and caused a reduction in oil flows through the Hormuz strait where a fifth of the world's oil supply used to transit.US forces struck three Iranian oil tankers on Saturday, US Central Command said, including one off the coast of Kharg Island, near Iran's key oil export hub.The navy of Iran's Islamic Revolutionary Guard Corps said on Saturday it targeted three oil tankers that were travelling through unauthorized routes in the Strait of Hormuz as well as three additional US vessels in other areas.

The Saturday attacks represented a "major escalation in the maritime conflict", maritime intelligence firm Marisks said.

"Commercial tankers are now being deliberately used as instruments of reciprocal economic pressure, substantially weakening the previous distinction between military confrontation and commercial shipping," it added.

An average of 10 commodity ships transited the Strait of Hormuz per day over the past 10 days, the lowest since May, data from analytics firm Kpler showed on Monday.

"If tanker traffic begins to slow materially, the market could price in a much larger supply shock. And there are already signs that this is happening," said Priyanka Sachdeva, head of market insights at Phillip Nova.

A restricted zone will be announced outside the Strait of Hormuz in coming days, Mohsen Rezaei, the secretary of Iran's Supreme National Security Council, said on Sunday, according to state media.

OPEC+ kept its oil output policy unchanged for October at a meeting on Sunday, the producer group said in a statement, as it needs to agree new quotas before deciding its next output steps.

A prolonged standoff, punctuated by calibrated military action by the US and Iran, appeared to be the most likely scenario and was likely to delay the path to full recovery of Middle East supply, ANZ analysts said in a note.

"We then expect exports to remain constrained through the rest of 2026, before a gradual reopening late in Q4 2026," they said, adding that a return to pre-war throughput is not expected until late first quarter or early second quarter of 2027.

Inflation fell for the second consecutive month in August, dropping to 8.26 percent, its lowest level in the past ten months, according to the data published by the Bangladesh Bureau of Statistics (BBS).

Food inflation fell sharply, while non-food inflation edged up. In August, food inflation stood at 7.02 percent, down from 7.16 percent in July, according to BBS data.

Non-food inflation, meanwhile, rose to 9.32 percent last month from 9.28 percent in July.

Point-to-point inflation of 8.26 percent means goods or services that cost Tk 100 in August last year cost Tk 108.26 in August this year.

The government has set a target of keeping annual average inflation at 7.5 percent in fiscal year 2026-27, which began on 1 July.

‘WHERE HAS COST OF LIVING FALLEN?’

AHM Shafiquzzaman, president of the Consumers Association of Bangladesh, said the latest figures do not reflect the reality of price increases.

“Electricity, fuel and essential commodity prices have all increased. There should be some reflection of that,” he said.

He pointed to recent price increases in sugar and rice, and noted that the pay scale for government employees has not yet been implemented.

“Where has the cost of living actually fallen?” he questioned, stating that people are cutting back on many things, including healthcare and medicines.

“In reality, people are simply eating less. If children do not receive adequate nutrition, we are creating an unhealthy generation,” he added.

SLOWER GROWTH DOESN’T MEAN FALLING PRICES

A BBS official, speaking on condition of anonymity, explained that the lower year-on-year rate does not mean commodity prices are declining.

“Prices are continuing to increase, but the rate of increase is comparatively slower than it was a year ago,” the official said, adding that prices had risen across almost all 12 major expenditure groups, with only isolated, seasonal exceptions.

Residential hotel rents fell in some cases due to the off-season, some electronics saw seasonal clearance discounts, and certain winter clothing items were marked down as they moved out of peak season.

The official, however, said these were isolated cases that did not change the broader trend of rising prices, and that a detailed sector-wise analysis would be needed to pinpoint the precise drivers of current inflation.

NO CLEAR SIGN INFLATION IS EASING

Md Deen Islam, professor of economics at the University of Dhaka, cautioned against reading the year-on-year dip as a sign that inflation is genuinely coming down.

“I would say that it is coming to a steady state,” he said, adding that the effects of the central bank’s contractionary monetary policy may still be working their way through the economy due to a lag in policy transmission.

The professor also commented that the rise in monthly inflation was concerning.

If the government wants to meet its FY27 inflation target of 7.5 percent, he said, the monthly rate would need to fall to around one percentage point.

If the monthly rate remains around two percentage points, achieving the government’s inflation target will become difficult, he added.

The economist linked elevated non-food inflation partly to the prolonged energy crisis, and warned that recent wage increases for lower-income government employees could add further demand-side pressure on prices in the coming months.

He called for better coordination between the government’s energy, monetary and exchange-rate policies, along with clearer efforts to manage inflation expectations.

“The government needs to demonstrate that the policies are actually working and that the problems are being addressed. At this point, we are still not seeing any clear sign that inflation expectations are coming down,” he said.

The initial public offering (IPO) drought is showing no sign of easing. More than two years after the last approval, the Bangladesh Securities and Exchange Commission (BSEC) has yet to greenlight a new share offering, despite various initiatives to revive the capital market.

The commission last approved an IPO in March 2024 for Techno Drugs.

Even now, six months after the new government took office and three months into the new BSEC commission's tenure, no company has formally applied to raise funds through an IPO.

This renders the prospect of a new company listing on the stock exchange in the near future increasingly unlikely.

Market stakeholders had anticipated fresh IPO filings with the start of the new fiscal year, as companies seeking capital must submit audited financial statements covering the preceding 180 days.

The prolonged drought has effectively blocked a key avenue for businesses to raise long-term expansion capital, forcing growing reliance on bank loans and internal revenues.

More importantly, there are currently no IPO applications or proposals awaiting approval at the BSEC, according to officials familiar with the matter.

This signals that the issue extends beyond regulatory delays. The deeper concern is that potential issuers are failing to progress from initial interest to formal applications.

Interest exists, but applications do not

Market stakeholders note that while several well-established, financially sound companies wish to raise long-term capital through the stock market, this interest has yet to yield formal applications.

Speaking on condition of anonymity, several merchant bankers told The Business Standard they are preparing several candidate firms for IPOs; however, many are waiting for regulatory clarity before submitting paperwork.

Prominent groups including BRB, DBL, City, and Confidence have surfaced in market discussions as prospective issuers.

This has created a paradoxical impasse: corporate interest exists and merchant bankers are preparing deals, yet no formal filings are reaching the regulator.

New government, new commission, new rules

The new government took office on 17 February, while the new BSEC commission assumed charge on 4 June.

Since assuming charge, the current commission has placed a strong emphasis on attracting large, high-quality issuers to the capital market. BSEC Chairman Masud Khan noted recently that Bangladesh boasts numerous well-established domestic and multinational corporations whose listings could significantly strengthen the market.

He further said the regulator aims to bring several prominent flagship companies to the exchange over the next six to twelve months, hinting that legal mandates could be considered if voluntary listings stall.

However, BSEC spokesperson Abul Kalam told TBS that the commission has not asked any company to refrain from applying for an IPO because of its initiatives to reform the regulatory framework.

"No IPO application will proceed unless an issue manager or company formally submits one," Kalam noted, adding that direct listing rules are now active alongside ongoing efforts to simplify the overall IPO framework.

Nearly Tk1,000 crore worth of proposals withdrawn

According to market sources, around 18 public offering proposals, including IPO applications, have been cancelled or withdrawn at various stages since March 2024.

These proposals could have raised around Tk1,000 crore from the capital market.

The contraction in the primary market is also evident from annual fundraising figures. In 2024, four companies raised Tk645 crore through IPOs. In 2023, four companies raised around Tk202 crore.

Earlier, six companies raised Tk626.26 crore in 2022, while 15 companies raised Tk1,858.44 crore in 2021.

Why are companies staying away?

Market stakeholders point to several factors driving the prolonged IPO drought. Valuation remains a primary concern, as entrepreneurs fear diluting ownership at unfavourable prices.

Regulatory uncertainty further fuels caution, with frequent changes to the IPO framework leaving prospective issuers hesitant to submit filings.

Additionally, companies are wary of post-listing compliance burdens, including stringent requirements for financial reporting, auditing, corporate governance, and independent director appointments.

Business owners are also seeking greater flexibility in how IPO proceeds are utilised – specifically for expanding operations and retiring expensive bank debt.

The problem is now the pipeline

The IPO problem has shifted from approval to pipeline. There are currently no IPO applications awaiting approval at the BSEC.

Although Bangladesh has 66 licensed merchant bankers engaging with prospective issuers, many firms are holding off until a more stable and predictable regulatory landscape takes shape.

To address this, the capital market reform task force has recommended streamlining the IPO process, lowering regulatory fees, reducing compliance hurdles, and implementing digital filing systems.

The key challenge for the government and BSEC is therefore to create a stable framework that encourages quality companies to move from initial interest to formal IPO applications and rebuild the market's pipeline of new issuers.

At the same time, the government has adopted a cautious approach towards taking new loans.

Emphasis is being placed on obtaining foreign loans only after considering the necessity of projects, their economic feasibility, investment benefits and the country’s future debt-servicing capacity.

According to the latest data from the Economic Relations Division (ERD), the government repaid US$453.23 million in principal and interest on foreign loans in July 2026. The amount was US$446.68 million in the same month of 2025.

On the other hand, foreign loan disbursement stood at US$180.1 million in July, compared with US$208.04 million in the same period of the previous year. The commitment for new foreign loans during the month stood at US$14.05 million.

The figures show that alongside regularly servicing its legacy debt, the government has also maintained restraint in taking new loans.

Priority is being given to using borrowed funds for projects capable of generating investment and employment, particularly by creating momentum in productive and manufacturing sectors.

The pressure of foreign debt repayment has increased significantly in recent years.

According to ERD data, the amount of principal and interest repaid against foreign loans in fiscal year 2025-26 increased by around 10 percent from the previous fiscal year to US$4.49 billion. The amount was US$4.09 billion in FY2024-25.

The main reason is that loans taken for large infrastructure and mega projects during the previous Awami League government have now entered the repayment phase.

As the grace periods for many of these project loans taken over the past one and a half decades have expired, repayment of principal and interest has begun.

As a result, the burden of debt servicing has increased during the tenure of the current government.

Talking to BSS, Prime Minister’s Adviser on Finance and Planning Professor Dr Rashed Al Mahmud Titumir said that the Awami League government borrowed extensively between 2009 and 2024 in the name of infrastructure and mega projects.

At the time of taking such loans, the government did not adequately consider the ‘value for money’ from the projects and the interest rates, he said.

He said a huge burden of loans and subsidies was also created in the power sector due to various factors, including capacity charges.

“The current government now has to deal with the additional pressure of repaying those loans. However, the government is servicing these liabilities,” he said.

Saying that the Awami League government had left a debt burden on future generations by taking loans indiscriminately, he said the present government has adopted an extremely cautious approach to borrowing from both domestic and foreign sources.

“We’re prioritising the use of loans to increase momentum in investment, particularly in the manufacturing sector. When taking a loan, we are considering what return it will generate and how much employment it will create before making a decision,” he said.

According to ERD data, repayment of principal and interest on medium-and long-term foreign loans stood at US$2.67 billion in FY2022-23. It increased to US$3.37 billion in FY2023-24 and further rose to US$4.09 billion in FY2024-25.

During the previous Awami League government, substantial foreign financing was obtained for implementing large infrastructure and mega projects.

Foreign assistance was also used significantly in various development programmes.

According to historical ERD data, foreign aid commitments stood at US$10.74 billion in FY2023-24, while disbursement amounted to US$10.28 billion.

Dr Zahid Hossain, former lead economist of the World Bank’s Dhaka office, told BSS that there had been a tendency in the past to take as much foreign borrowing as was available.

Now, decisions on obtaining foreign assistance should be based on assessing the actual necessity of various development projects, he said.

He said financing from the World Bank’s International Development Association (IDA) and Japan was no longer available on terms as easy as before.

Therefore, he said, the government must also consider whether the country has the capacity to repay such loans in the future.

“The government must be extremely cautious in selecting development projects, taking into consideration the country’s capacity to repay both the principal and interest on loans,” Dr Zahid Hossain added.

At the same time, he stressed the need to genuinely implement financial-sector reform initiatives and ensure that their benefits become visible.

According to him, before undertaking a project, its potential financial and economic benefits and the expected return against the investment need to be considered seriously.

Meanwhile, total foreign aid disbursement stood at US$8.07 billion in FY2025-26, down from US$8.57 billion in the previous fiscal year.

Disbursement of project assistance declined to US$8.02 billion from US$8.52 billion. However, grant disbursement increased to US$553.95 million from US$454.56 million in the previous fiscal year.

The World Bank was the largest source of foreign assistance in FY2025-26, disbursing US$2.07 billion during the period. The Asian Development Bank (ADB) followed with US$1.91 billion.

Economists believe that an increasing portion of the loans taken during the previous government has now become repayable.

Therefore, it is essential to accelerate implementation of ongoing projects, complete them within the stipulated timeframe and ensure the expected economic benefits from those projects.

They also recommended negotiating with development partners for loans on better terms and, where possible, prioritising concessional or soft-term financing.

The country's premier bourse, the Dhaka Stock Exchange (DSE), witnessed a classic "V-shaped" recovery today (7 September), with the benchmark index staging a remarkable 95-point turnaround in the final hour of the trading session.

After a harrowing mid-session slump that saw the DSEX plunge below the psychological 5,500-point threshold, a surge of institutional buying interest helped the market erase its massive losses and settle on a positive note, according to the market insider.

The trading day began with significant volatility, and by 12:30pm, the DSEX had plummeted by 67 points, hitting an intraday low that triggered panic among retail participants. However, the momentum shifted abruptly in the afternoon. Between 12:30pm and 1:58pm, the broad index climbed sharply, recovering all lost ground and adding enough momentum to close at 5,567 points, up 8 points from the previous session.

Market insiders observed that the final-hour boost was primarily orchestrated by institutional investors and high-net-worth individuals. These "bargain hunters" identified the mid-session crash as an attractive entry point, moving in to accumulate fundamentally strong shares at multi-month lows. This professional intervention provided a much-needed lifeline to the market's faltering momentum.

According to the daily market review by EBL Securities, the capital bourse finally found its footing after a prolonged downturn. The session was defined by a fierce tug-of-war between sellers and buyers. While intensified selling pressure dominated the first half of the day, the late-session buying spree in heavyweight scrips allowed the benchmark index to reverse its nearly 70-point intraday loss.

On the sectoral front, the textile sector emerged as the primary driver of liquidity, accounting for a massive 29.8% of the total turnover. It was followed by general insurance at 12.8% and the pharmaceutical sector at 12.0%. Sectoral returns were mixed, with textiles gaining 2.7% and the travel sector rising by 1.9%. On the flip side, the cement sector faced a correction of 1.1%, while the telecommunication segment also ended marginally lower.

The market breadth reflected the late-hour recovery, with 170 issues advancing compared to 150 that declined, while 63 remained unchanged.

Total turnover on the DSE saw a 5% uptick, reaching Tk571 crore.

Major index pullers that supported the rebound included Pubali Bank, Dominage Steel, Southeast Bank, Envoy Textile, and Malek Spinning.

Individual stock performance was highlighted by Tung Hai Knitting, which hit the 10% upper circuit limit. Other top gainers included Saiham Cotton, Premier Leasing, and Sea Pearl Beach Resort.

Conversely, Sena Insurance was the day's top loser, shedding 9.97% of its value, followed by CAPM IBBL Mutual Fund and Prime Textile. On the liquidity front, Sharp Industries, Saiham Cotton, and Envoy Textile were among the most traded stocks of the day.

While the premier bourse ended in the green, the sentiment remained slightly dampened at the Chittagong Stock Exchange (CSE), where the broad CASPI index dropped 82 points to settle at 14,919. Turnover at the port city bourse stood at Tk18.84 crore.

Summit LNG Terminal II Company Limited has urged the government to reconsider the interim government's decision to cancel a deal for setting up the country's third floating storage and regasification unit (FSRU) for LNG imports.

The company said retaining the agreement instead of proceeding with an FSRU proposed by a Chinese company could save Bangladesh around $1.10 billion.

In a letter sent to the chairman of Petrobangla on 6 September, Summit said if the agreement signed in March 2024 is retained, the FSRU, mooring system and subsea pipeline would be handed over to Petrobangla free of cost after 15 years of operation.

Bangladesh currently has two FSRUs – one owned by Summit Group and the other by US-based Excelerate Energy Bangladesh. During the Awami League government, the authorities signed an agreement with Summit on 30 March 2024 to set up another FSRU.

Before the FSRU is handed over, it will undergo a full dry-docking and certification by a globally recognised classification society. This, Summit said, would ensure that the FSRU remains fit for another 10 years of operation.

The government is taking various initiatives to address the country's energy shortage, including plans to install additional FSRUs. As part of this effort, the Cabinet Committee on Economic Affairs on 28 July gave in-principle approval to set up a third FSRU through China National Energy Engineering and Construction Company under a government-to-government arrangement.

The Chinese company submitted its proposal to the government on 19 June.

In the letter signed by Summit LNG Terminal II Company Secretary ASM Nazmul Haider, the company said the second terminal was supposed to be implemented under a Build-Own-Operate-Transfer (BOOT) model under its agreement with Petrobangla.

However, the Build-Own-Operate (BOO) structure currently being considered for the Chinese company's proposed third FSRU would not provide for the transfer of the FSRU to Petrobangla.

As a result, Petrobangla would not obtain full ownership of the FSRU, causing an estimated economic loss of around $883 million, Summit said.

Citing reports published in the media, Summit said the proposed Chinese FSRU would have a daily charter rate of around $3,42,000, compared with approximately $3,00,000 for its second terminal.

This would mean a saving of around $42,000 per day if the Summit terminal agreement is retained, amounting to approximately $230 million over 15 years.

"Therefore, the total financial savings would be approximately $1.10 billion," the company said.

Summit also claimed it has already invested more than $20 million in the project.

দেশের তরুণ প্রজন্মের মধ্যে পুঁজিবাজার, বিনিয়োগ ও আর্থিক বিষয়ে সচেতনতা বাড়াতে লংকাবাংলা সিকিউরিটিজ পিএলসি ও এক্সিলেন্স বাংলাদেশের মধ্যে সমঝোতা স্মারক স্বাক্ষরিত হয়েছে।

গত ৫ সেপ্টেম্বর ২০২৬, শনিবার রাজধানীর বনানীতে লংকাবাংলা সিকিউরিটিজের কার্যালয়ে আয়োজিত এক অনুষ্ঠানে দুই প্রতিষ্ঠানের প্রতিনিধিরা আনুষ্ঠানিকভাবে এই সমঝোতায় স্বাক্ষর করেন। অনুষ্ঠানে উভয় প্রতিষ্ঠানের জ্যেষ্ঠ ব্যবস্থাপনা পর্যায়ের কর্মকর্তা ও সংশ্লিষ্ট ঊর্ধ্বতন কর্মকর্তারা উপস্থিত ছিলেন।

সমঝোতার আওতায় দেশের বিভিন্ন বিশ্ববিদ্যালয়ের শিক্ষার্থীদের জন্য পুঁজিবাজার ও বিনিয়োগ বিষয়ে সচেতনতামূলক কার্যক্রম পরিচালনা করা হবে। পাশাপাশি শিক্ষামূলক আলোচনা, সেমিনার, শিক্ষার্থী প্রতিযোগিতা, ক্যাম্পাস প্রতিনিধি কার্যক্রম এবং ডিজিটাল প্রচারণার মতো বিভিন্ন উদ্যোগ নেওয়া হবে।

এই অংশীদারিত্বের মাধ্যমে ২০৩০ সালের মধ্যে দেশের ১০ লাখ শিক্ষার্থীর কাছে পুঁজিবাজার ও বিনিয়োগ সম্পর্কে প্রাথমিক ও প্রয়োজনীয় জ্ঞান পৌঁছে দেওয়ার লক্ষ্য নির্ধারণ করা হয়েছে। তরুণদের মধ্যে সঠিক আর্থিক জ্ঞান তৈরি এবং দায়িত্বশীল বিনিয়োগের সংস্কৃতি গড়ে তুলতে এ উদ্যোগ গুরুত্বপূর্ণ ভূমিকা রাখবে বলে আশা প্রকাশ করা হয়েছে।

অনুষ্ঠানে লংকাবাংলা সিকিউরিটিজ পিএলসির ব্যবস্থাপনা পরিচালক মোহাম্মদ নাসির উদ্দিন চৌধুরী এবং এক্সিলেন্স বাংলাদেশের প্রতিষ্ঠাতা ও প্রধান নির্বাহী কর্মকর্তা বেনজির আবরারসহ দুই প্রতিষ্ঠানের জ্যেষ্ঠ কর্মকর্তারা উপস্থিত ছিলেন।
দুই প্রতিষ্ঠানের পক্ষ থেকে বলা হয়েছে, এই সমঝোতার মাধ্যমে দেশের বিশ্ববিদ্যালয়, তরুণ প্রজন্ম ও পুঁজিবাজারের মধ্যে একটি কার্যকর এবং টেকসই সংযোগ গড়ে তোলার সুযোগ তৈরি হবে। একই সঙ্গে শিক্ষার্থীরা ভবিষ্যতে আর্থিক সিদ্ধান্ত নেওয়ার ক্ষেত্রে আরও সচেতন ও দক্ষ হয়ে উঠবেন বলে প্রত্যাশা করা হচ্ছে।

Bangladesh is making a final push to win support from countries and trade blocs for a three-year delay to its graduation from the UN list of Least Developed Countries (LDCs), as the 81st session of the UN General Assembly begins in New York.

The decision on Bangladesh and Nepal’s requests to defer their LDC graduations by three years is expected at the session.

The 81st UNGA begins today, with the main high-level meetings of heads of state and government scheduled for September 18 to 28, according to the UN.

Bangladesh’s request to defer its graduation has already been recommended by the UN Committee for Development Policy (UNCDP). Following that, the UN Economic and Social Council (ECOSOC) agreed to put the proposal before the General Assembly.

“The decision on Bangladesh’s issue of LDC graduation deferment may be taken in the high-level meeting between September 22 and September 23,” Commerce Secretary Md Ataur Rahman Khan told The Daily Star over the phone yesterday.

Bangladesh has been lobbying different countries and trade blocs, including the European Union (EU), for support for its request for a three-year deferral, Ataur said.

The commerce secretary recently visited New Zealand and Australia to seek their support, arguing that the country needs more time to prepare for a smooth graduation.

“Bangladesh has also sought the backing of the G77, a group of 135 developing countries, and its members have committed to supporting the proposal at the UNGA,” Ataur said.

Bangladesh is also in close contact with the EU and African LDCs to seek their support. Nepal is backing Bangladesh’s efforts as it has also sought a deferral, he said.

The commerce secretary said that senior government officials have been seeking support directly from governments and trade blocs, while Bangladesh’s high commissioners in different countries have also been lobbying on the issue.

The deferral request could be decided in one of two ways. If Bangladesh’s proposal is approved unanimously, there will be no need for a vote.

But if there is no consensus, the proposal will go to a vote among member states. Bangladesh will need a two-thirds majority for its request to be approved.

“I am very much hopeful that we can secure the support of the required member countries for the deferment of the LDC graduation, as we have been working on it over the last few months and still continuing our efforts. They have also committed to supporting us,” the commerce secretary also said.

Earlier, on February 19, the BNP government sent a letter to the chair of the UNCDP, requesting that the preparatory period be extended until November 24, 2029, saying more time was needed to ensure adequate preparedness.

Following Bangladesh’s request, the UNCDP discussed the issue at its annual meeting in February and agreed on a process to assess the proposal.

The country’s business community has also been pressing the current government and the previous interim administration to delay graduation, saying businesses need more time to prepare.

Business leaders said high bank interest rates and the political changeover in 2024 following widespread protest and political uncertainty have hit the economy.

A UN assessment report in March said Bangladesh still faced serious gaps in its readiness for graduation, as its economy continued to be affected by domestic and international shocks, including the US-Israel’s war on Iran.

The report highlighted disruptions between 2017 and 2026, including climate vulnerability, the Rohingya crisis, the Covid-19 pandemic, the Russia-Ukraine war, inflation, pressure on the balance of payments and a prolonged macroeconomic slowdown that predated the regime change.

It said that while Bangladesh met all three criteria for graduation, significant risks persist, including the loss of trade preferences, fiscal and financial vulnerabilities, and weak institutional coordination.

Rising import costs for fossil fuels have created operational constraints, while gas shortages have worsened because of the Middle East conflict, said the UN report.

Economic growth slowed from 7.1 percent in FY22 to 3.5 percent in FY25, weakening momentum ahead of graduation. Inflation has outpaced wages, pushing millions into hardship and vulnerability.

A recent UN Trade and Development assessment estimated that Bangladesh could lose more than $17.5 billion in annual exports after graduation.

Mustafizur Rahman, distinguished fellow at the local think tank Centre for Policy Dialogue (CPD), said Bangladesh’s preparation has been taken in two ways. First, Bangladesh applied for the deferment; second, the UN itself conducted an assessment based on Bangladesh’s plea for deferment.

Bangladesh will have to secure the deferment at this session as the country’s LDC graduation is scheduled for November 24 this year, he added. He also said the support of African LDCs is important.

Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said Bangladesh should now build consensus among UN member states so that the proposal can be passed smoothly at the General Assembly.

“Bangladesh should continue lobbying the G77 and the EU, while securing support from African LDCs is particularly important because most LDCs are in Africa,” he said.

Moreover, a consensus should be built between the UNCDP and UN ECOSOC that Bangladesh is facing a crisis, said the economist, specialising in applied international trade and development issues.

“The main partners are the EU, UK, Scandinavian countries, G77 countries and the African LDC group,” he added. “The government should also send letters to different sub-committees of the UN body seeking their support for the deferment.”

However, it may be difficult to obtain US support. But Bangladesh will have to manage US support carefully as there is a reciprocal trade agreement with America, Razzaque also said.

On the other hand, Bangladesh may obtain support from the EU and UK more easily, the economist also said.

Md Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry, said Bangladesh needs the deferment as businesses are in big trouble.

“I am very hopeful that Bangladesh’s LDC graduation deferment will take place as it is needed for us,” he added.

He said that if the deferment does not take place, Bangladeshi trade and business will face a lot of trouble as they are not ready for a smooth graduation.

Finance ministry officials said the national committee on LDC graduation has also held a final preparatory meeting on the deferment proposal at the ministry.

A good number of ministers, advisers and secretaries from different ministries attended the meeting, chaired by Finance Minister Amir Khosru Mahmud Chowdhury.

Ministry officials also said Prime Minister Tarique Rahman may lead the Bangladesh delegation at the 81st session of the UNGA, although the schedule has not been fixed yet.

Data centers are running into a wall of public anger in the United States over their thirst for water and power.The tech giants spending billions of dollars on them say the water part, at least, is solvable.
Data centers are the warehouses full of computer servers that run the internet and increasingly artificial intelligence.The computers get hot, and keeping them cool takes water.American chip giant Nvidia said in a June report that it can eliminate water consumption almost entirely at some facilities when deploying DSX, its newest system for designing and managing AI data centers.It's a bold claim, and one the industry is under mounting pressure to make good on.

In 2025, data centers consumed 222 billion liters (59 billion gallons) of water worldwide for cooling, according to consultancy Rystad Energy.Without adaptive measures, the figure could nearly triple to 644 billion liters by 2030, Rystad estimates. Steps to limit the growth could keep it under double.

Nvidia's new method uses a closed-loop cooling system in which liquid flows directly through the servers, as close as possible to the chips, whose temperature can rise above 80C (176F).

The problem is that "there's a pretty direct trade-off between how much water is used and how much energy is used" for temperature control, said Andy Masley, an independent researcher who covers AI and data centers.

Cutting back on water use usually means more power as the liquid in those sealed pipes still has to be cooled down somehow, usually by blowing air over it -- and that takes electricity.

Nvidia gets around some of this by letting the liquid enter the servers warmer than usual, at 45C.

Most other closed-loop systems ran at about 32C in 2024, according to the Uptime Institute, which certifies data centers.

By starting with warmer water, Nvidia does not need to pump in cooled air year-round.

"Simple fans circulating the air" are often enough, though sometimes a mix of methods is needed, said Josh Parker, Nvidia's head of sustainability.

At sites in extreme climates, or during a heat wave, chill airflow or water evaporation is still necessary.

Microsoft, Amazon Web Services (AWS) and Meta told AFP that they also use closed-loop systems, which they said involve no net water loss.

The two cloud computing giants, which have been expanding their already huge data center footprints, used more water overall between 2022 and 2025, but their water use efficiency improved by 25 percent at Microsoft and 37 percent at AWS, according to their most recent sustainability reports.

There is no industry-wide consistency, however, in how companies report data on so-called environmental, social and governance (ESG) efforts.

Elon Musk's SpaceX, now a major player in data centers after it acquired his artificial intelligence company xAI, has never published an ESG report.
Google News LinkFor all latest news, follow The Daily Star's Google News channel.

In June, ratings agency MSCI gave SpaceX its lowest ESG score.

"Because water is generally much cheaper than electricity," companies have less incentive to cut water use on cost grounds alone, said Shaolei Ren, an engineering professor at the University of California, Riverside.

"There are incentives," Ren said, but they have more to do with public relations amid the growing backlash to data centers across the United States.

Another obstacle is that upgrading an older data center to newer, less thirsty technology is expensive.

That may matter less than it sounds.

Older data centers are smaller and less powerful than the enormous new ones being built now, so they need less cooling in the first place, said Minh K. Le, who leads data center and hydrogen research at Rystad.

And the water a data center uses directly is only part of the story.

Water is used to generate the electricity that powers the data center, and to manufacture its chips and servers.

In the United States, that hidden water use can be twice the amount a data center consumes on its own.

The European Union has called for a level playing field for its businesses and investors in Bangladesh, highlighting the proposed purchase of Airbus aircraft as an example, as Dhaka reported progress in resolving trade barriers raised by the bloc.
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An EU delegation raised the issue with ministers and senior officials at a meeting at the Ministry of Commerce on Sunday, when the Bangladesh side briefed 27 EU representatives on progress in addressing the non-tariff barriers (NTBs).

The two sides also discussed a free trade agreement and EU support for Bangladesh's request to defer its LDC graduation.

"We have so far addressed 48 of the 61 identified non-tariff barriers (NTBs), while 13 remain at various stages of resolution," Commerce Minister Khandakar Abdul Muktadir told a joint press briefing following the meeting.

The two sides also discussed a free trade agreement and EU support for Dhaka's request to defer its LDC graduation.

State Minister for Planning Jonaed Abdur Rahim Saki, Ambassador and Head of the EU Delegation to Bangladesh Michael Miller, NBR Chairman Ahsan Habib and Commerce Secretary Md Ataur Rahman Khan were also present at the press briefing.

Adviser to the Ministry of Finance and Planning Rashed Al Mahmud Titumir, State Minister for Foreign Affairs Shama Obaed, Finance Secretary Md Khairuzzaman Mozumder and senior officials from the ministries of commerce and foreign affairs were present at the meeting with the EU delegation.

The commerce minister said Bangladesh had already resolved 48 of the 61 trade barriers identified by the EU, while the remaining 13 were at different stages of resolution.

He said the government had worked with several ministries and agencies, including the National Board of Revenue (NBR) and the ministries of agriculture, fisheries and livestock, and shipping, to address the EU's concerns over the NTBs.

The minister said Bangladesh was also preparing to begin negotiations with the EU for a free trade agreement (FTA), describing the issue as strategically important as the EU is Bangladesh's largest export market.

He also sought EU support for Bangladesh's request to defer its LDC graduation by three years.

Bangladesh has already secured recommendations from the UN Committee for Development Policy (CDP) and the Economic and Social Council (ECOSOC), and the matter is expected to be placed before the 81st session of the UN General Assembly, he said.

"EU support is very important for us in this process," he said, adding that strong support from the European Union would play an important role for Bangladesh.

Explaining some of the measures taken to remove the trade barriers, he said restrictions on the renewal of licences for 100-per-cent foreign-owned logistics companies had been removed.

The annual limit for the import of samples by exporters and businesses had also been doubled to $20,000 from $10,000 through the latest Import Policy Order, he added.

The government had also revised the customs valuation of smart cards used for product traceability, introducing two categories based on their actual value instead of applying duties to an artificially higher value, according to the minister.

However, the requirement to obtain a government no-objection certificate (NOC) 15 days before importing or exporting goods under the country's flag-vessel protection law remains unresolved.

The law requires 50 per cent of Bangladesh's imports and exports to be carried by Bangladeshi-owned vessels.

The minister said Bangladesh currently had around 122 vessels, including seven operated by Bangladesh Shipping Corporation and about 115 privately owned vessels, which were insufficient to carry half of the country's roughly $130 billion annual two-way trade.

He said the government would seek to resolve the issue by amending the relevant law.

EU envoy Michael Miller said the EU wanted to further deepen economic and political relations with Bangladesh.

He stressed the need to ensure a level playing field for EU businesses and investors operating in Bangladesh, citing the proposed purchase of Airbus aircraft as an example.

He also highlighted the first round of negotiations on a Bangladesh-EU FTA as an important step in strengthening bilateral economic ties.

The EU ambassador called for greater cooperation in areas including border management, intellectual property rights and human rights.

Replying to questions on Bangladesh's trade relations with the United States, the commerce minister said the government evaluated purchases from different countries on their own merits, rather than solely on the basis of headline prices.

He cited Bangladesh's planned purchase of LNG from a US company as an example, saying the company had offered 117 cargoes through 2038 at an average price of around $9 per unit, based on the index applicable when the cabinet committee approved the deal.

He also said Bangladesh imported wheat from the US because its wastage rate was lower than that of wheat sourced from some other countries, making it economically beneficial when the full cost was considered.

"We try to apply our best judgement based on the merits of each purchase, whether it is from the US, the EU, China, India, or elsewhere," he said.

The EU is Bangladesh's largest trading partner, with bilateral trade in goods reaching €23.3 billion in 2025.

Currently, Bangladesh enjoys a substantial trade surplus with the bloc, largely driven by garment exports. The EU imported nearly 94 per cent of its goods from Bangladesh in textiles in 2025.

As an LDC, Bangladesh currently enjoys duty-free and quota-free market access to the EU under the Everything But Arms (EBA) scheme, a key advantage for the country's export-oriented economy.

Singapore-based global hospitality giant, The Ascott Limited is eyeing Bangladesh as a potential growth market and is open to partnering with local property owners to bring its international hotel and serviced-residence brands to the country.

"Bangladesh is a market we are watching closely as part of our growth strategy in South Asia. The combination of business and leisure demand in destinations such as Dhaka, Chattogram and Cox's Bazar makes it a promising market for Ascott," an Ascott spokesperson told The Business Standard via email following an in-person conversation in Singapore.

The company, however, does not have any confirmed project to announce in Bangladesh at this stage. "While we don't have confirmed plans to share at this stage, we remain open to exploring partnerships with like-minded property owners to bring our brands and concepts."

Ascott's interest comes as Bangladesh's hospitality market continues to see demand from business travellers, tourists, expatriates and long-stay visitors, particularly in Dhaka and major tourism destinations such as Cox's Bazar.

"That demand profile is well suited to our flex-hybrid business model, which caters to different traveller needs, from short business and leisure stays to extended stays and relocation," the spokesperson said.

Asset-light expansion strategy

Unlike a conventional property investment model, Ascott primarily expands through management and franchise partnerships, allowing property owners and investors to develop or convert properties under its international brands without requiring Ascott to make the entire capital investment itself.

Ascott's growth as a global company is asset-light by design, driven by management and franchise partnerships rather than direct capital investment, the company said. Under this model, Ascott brings its hospitality expertise, operating systems and brands, while property owners can benefit from international management and distribution networks.

Across serviced residences, hotels, resorts, social-living properties and branded residences, the company works with property owners to address demand gaps, create distinctive guest experiences and generate long-term value.

Bangladesh fits its brand portfolio

Ascott has a diverse portfolio of brands covering the upper-midscale, upscale and luxury segments, giving property owners flexibility to target different categories of travellers.

Its brands include Ascott, Citadines, lyf, Oakwood Premier, Oakwood, Somerset, The Crest Collection, The Unlimited Collection, Adoor Apartment, Adoor Suites, Fox, Harris, POP!, Preference, Quest, Vertu and Yello.

The Ascott Limited is a wholly owned business unit of CapitaLand Investment Limited.

The company currently has more than 1,000 properties across over 230 cities in more than 40 countries, with a presence spanning Asia Pacific, Central Asia, Europe, the Middle East, Africa and the US. In South Asia, Ascott has 27 properties, mainly in India.

The general manager of a five-star hotel in Dhaka's Gulshan area told TBS, "The business model followed by global hospitality chains like Ascott is well-suited to Bangladesh. Local businesses are also looking for such opportunities to partner with global chains."

Bangladesh's first tourism master plan aims to attract 5.57 million foreign tourists by 2041. In recent years, Bangladesh has drawn over 0.6 million foreign passport holders annually.

Sustainability becomes growth priority

During a recent visit by a group of journalists from across Asia, including this correspondent, to three Ascott properties in Singapore, the company showcased how sustainability and innovation are being incorporated into its hospitality operations.

Siew Kim Beh, chief financial and sustainability officer at Ascott, said sustainability is being implemented across its properties in different ways.

"Across our properties, sustainability comes to life in different ways: from AI-powered cooling optimisation for energy efficiency and more accessible guest journeys for persons with disabilities, to initiatives that encourage guests to make more sustainable choices during their stay," she said.

At lyf Funan Singapore, the company showcased some of these initiatives, including a farm-to-table tea tasting using ingredients grown on the property's rooftop farm.

Ascott launched Ascott CARES, its global sustainability framework, in 2022. The framework is built around the Global Sustainable Tourism Council (GSTC) Standards and integrates environmental, social and governance (ESG) considerations into the company's operations and growth strategy.

Since then, Ascott has achieved GSTC-Committed Status, expanded GSTC certification across its portfolio and established science-based climate targets, including a target of net-zero Scope 1 and 2 emissions by 2050.

A severe wave of panic selling gripped the Dhaka Stock Exchange (DSE) yesterday, dragging all indices sharply into the red, with 89% of stocks declining and market capitalisation falling by Tk6,781 crore.

Intensifying risk-averse sentiment and aggressive sell-offs by both institutional and individual investors pushed DSEX, the broad market index, down by over 103 points to close at 5,558, according to bourse data.

Market participants attributed the sharp fall to the ongoing countrywide utility crisis, particularly involving gas and electricity, which has severely dampened investor confidence and driven investors to the sidelines to protect their portfolios from further erosion.

They also pointed to unexpected intervention by the stock exchange regarding large buy and sell orders, which has unsettled major individual investors, prompting many to stay on the sidelines out of caution.

According to DSE data, this is the first single-day fall of over 100 points in DSEX since the new commission assumed office in June.

On 5 April, DSEX had lost 107 points; since then, the index has seen volatility, but declines had not exceeded 100 points until yesterday. Two and a half months earlier, DSEX had stood at 5,554 points on 22 June, according to data.

Following that, the benchmark index gradually climbed to the 5,900 mark as investor participation rose slightly on hopes surrounding the new chairman and commissioners assuming office at the regulatory body.

However, since 11 August, DSEX has lost 345 points, while market capitalisation has plunged by Tk17,065 crore as market sentiment and investor participation deteriorated due to the issue of changing in margin rules and other factors.

Saiful Islam, president of the DSE Brokers Association of Bangladesh, told TBS, "Overall investor confidence remains shaky due to the worsening energy crisis, with no immediate solutions in sight."

He added, "We have received allegations regarding stock exchange interference in large buy and sell orders. We have taken this seriously, discussed the matter with regulators, and are trying to resolve the issue."

He said due to the alleged market interference, some large investors may have moved to the sidelines. "We are talking with regulators to solve the issue," he stated.

When asked about the nosedive in indices and turnover, Abul Kalam, spokesperson for the Bangladesh Securities and Exchange Commission (BSEC), said the current regulator does not interfere in the market, noting that the market experiences ups and downs driven by the forces of demand and supply.

"We did not detect any suspicious trading in our surveillance regarding the decline in the market. It is normal trading," he said.

89% stocks price down

As per data of the DSE, an 89% stock price declined as massive sell-offs gripped the market since the beginning of the trading sessions yesterday.

Of the traded 389 stocks, 348 stocks prices declined, while 20 advanced and 21 remained unchanged. Of the advanced stocks, mutual funds dominated the gainer chart.

Trading session started on a positive note but did not sustain after two minutes as heavy sell-offs dumped rapidly with panic selling accelerating between 12pm and 2pm yesterday as stop-loss triggers and margin pressures forced investors to offload holdings.

Analysts attribute this sharp pullback to persistent macroeconomic uncertainty, institutional profit-taking, and a lack of fresh triggers to rebuild investor confidence in the short term.

EBL Securities in its daily market commentary said, the capital bourse suffered the brunt of intense selling pressure in the opening session of the week, dragging the benchmark index down by more than 100 points to a two and a half month low, as the market pulse swiftly shifted to a bearish tone amid prolonged uncertainties over a nationwide gas and electricity crisis, along with apprehensions over a sharp downturn in corporate earnings.

"From the outset of the session, the broad index remained on a downward trajectory as sector-wide sell-offs swept across the trading board, reflecting widespread risk aversion among investors. The relentless selling spree intensified in the latter half of the session, triggering broad-based erosion across equities and further weighing on investors' already battered portfolios, it said.

On the sectoral front, Textiles sector accounted for the highest share of turnover by 28.8%, followed by General Insurance 14.2% and Pharma 11.2%.

All the sectors posted negative returns, where General Insurance, Textile and Paper exhibited the most corrections on the bourse.

The port city bourse, CSE, also ended in negative terrain. The Selective Categories' Index (CSCX) and All Share Price Index (CASPI) lost 88.1 points and 171.0 points, respectively.

A new option for Bangladesh’s long-term LNG import infrastructure has been proposed, with Novatek Middle East presenting a $950 million gravity-based structure (GBS) as a cheaper and longer-lasting alternative to a conventional land-based LNG terminal.

The company presented the concept to Petrobangla yesterday. The proposed facility would be built in the Bay of Bengal as a fixed offshore terminal for receiving, storing and regasifying imported LNG (liquefied natural gas), with a regasification capacity of 7.5 million tonnes per annum (MTPA).

According to Novatek’s presentation, the GBS would cost about $950 million, compared with an estimated $1.2 billion for a conventional 7.5-MTPA land-based terminal. This would make the offshore option about $250 million, or 21 percent, cheaper in initial capital costs.

However, the figures are based on the company’s own estimates and have not been independently verified. They have also not been compared with the government’s feasibility study for the planned 7.5-MTPA land-based LNG terminal at Matarbari.

The proposal remains at a very early stage, and Novatek has not yet submitted a formal proposal.

“It was a very preliminary-level presentation. We have learned from them. We would discuss it later with the higher-ups,” a top Petrobangla official told The Daily Star.

OFFSHORE STRUCTURE COULD OFFER LONGER LIFE

The main difference between the proposed GBS and a conventional LNG terminal is where the infrastructure is located.

A land-based terminal keeps LNG storage tanks and regasification facilities on the coast, with LNG carriers unloading through marine facilities. A GBS would instead place the storage and regasification facilities offshore on a large reinforced-concrete structure fixed to the seabed. The gas would then be sent to the national grid through a subsea pipeline.

Both systems perform the same basic functions: receiving LNG, storing it, converting it back into gas and supplying it to the gas network.

Novatek has identified deep-sea areas around Moheshkhali and Matarbari as possible locations.

The company estimates that a GBS could be built in 30 to 36 months and have a design life of 60 to 80 years. A conventional land-based terminal would take about 48 to 60 months to build and have a design life of 40 to 60 years.

An FSRU (floating storage and regasification unit), meanwhile, could be deployed in 24 to 30 months but would have a design life of only about 15 years, according to the presentation.

Bangladesh currently imports LNG through two FSRUs at Moheshkhali and plans to add a third. The government has also revived efforts to develop its long-delayed 7.5-MTPA land-based LNG terminal at Matarbari.

The GBS proposal could therefore offer another option as Bangladesh faces a persistent gas shortage, declining domestic gas production and growing dependence on imported LNG.

Recent disruptions at the country’s FSRUs have also exposed the vulnerability of LNG import facilities to technical problems and adverse weather. Reduced LNG send-out during such disruptions has further squeezed gas supplies to power plants and industries.

TWO DESIGNS AIM TO WITHSTAND SEVERE WEATHER

Novatek has proposed two GBS configurations. The larger one would have gross LNG storage capacity of about 290,000 cubic metres, while the smaller one would hold about 194,000 cubic metres.

Both would have 7.5 MTPA of regasification capacity, 1 MTPA of LNG bunkering capacity and 42MW of captive power generation capacity. The larger structure would also be capable of receiving the world’s largest LNG carriers, according to the presentation.

Weather resilience is one of the main advantages claimed for the technology. Novatek describes the GBS as a stationary, all-weather terminal with “very high” resistance to cyclones. FSRUs, by comparison, can face operational disruptions from strong winds, high waves and currents.

These claims, however, would need to be tested for the proposed site. The presentation itself calls for a detailed study of weather and marine conditions, including extreme winds, waves, storm surges, currents, seabed conditions and the safe berthing and transfer of LNG carriers.

The main GBS facility would not require coastal land, according to the proposal. Some onshore infrastructure would still be necessary, however, to connect the subsea gas pipeline to the national transmission network.

The technology draws on GBS structures developed by Russia’s Novatek, which has used large concrete gravity-based structures for its Arctic LNG 2 project.

The application in Bangladesh would be different. The Arctic LNG 2 structures house LNG production and liquefaction facilities, while the proposed Bangladesh facility would receive imported LNG, store it and convert it back into gas for domestic use.

‘Virtual pipeline’ and regional hub planned

The proposal also includes a second phase in which small, shallow-draft vessels would transport LNG from the offshore terminal to riverbank facilities near Meghnaghat, Ashuganj, Ghorashal and Bheramara.

Novatek calls this a “virtual pipeline” that could supply major gas-consuming areas without relying entirely on the existing pipeline network.

The idea comes as the government is also exploring the use of ISO tanks from Malaysia to transport LNG to gas-starved areas outside the main gas network.

ISO tanks would carry LNG in standardised cryogenic containers by road or other transport modes and would serve relatively small volumes. Novatek’s proposed system, in contrast, would move much larger volumes using dedicated LNG vessels to riverbank regasification facilities.

Novatek also sees the GBS becoming a regional LNG transhipment and bunkering hub. The presentation identifies potential shipments from Bangladesh to India, Pakistan, Sri Lanka, Vietnam, Malaysia and Indonesia using small and medium-sized LNG vessels.

Novatek has proposed an investment model based on foreign direct investment, but the presentation does not provide details on the commercial structure, tariffs, financing costs or expected investor returns.

A delegation of QatarEnergy, Bangladesh's largest contracted liquefied natural gas (LNG) supplier, is coming soon to find a possible way of resuming the LNG supply as its cargo halt created fuel furors in the country.
QatarEnergy stopped supplying LNG to Bangladesh immediate after the outbreak of the US-Israel war on Iran in the Middle East and restrictions on the passage of vessels through the strategic Strait of Hormuz.

The Middle-Eastern company announced 'force majeure' on March 4 to cease LNG supply to Bangladesh, and since then, it had extended the taboo every month. And under its latest announcement, QatarEnergy was not to send gas cargos until September.

The LNG-marketing team of QatarEnergy is expected to hold discussion with top officials of state-run Petrobangla and its subsidiary Rupantarita Prakritik Gas Company Ltd (RPGCL) on September 9.

"The visit of this team to Bangladesh is a follow-up to the visit of a high-powered Bangladeshi delegation to Qatar a couple of week ago," a senior official of the Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) told The Financial Express on Sunday.

Qatar had assured Bangladesh of all possible support in ensuring energy security, particularly amid the current challenging circumstances, during a meeting between Foreign Minister Khalilur Rahman and Qatar Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani in Doha, he said.

Describing Bangladesh as a brotherly country, the Qatari prime minister had assured the Bangladeshi delegation, also comprising state minister for the MPEMR Aninda Islam Amit, of extending all possible support to Bangladesh in ensuring energy security.

"QatarEnergy has been showing positive intentions to help Bangladesh in coming out of the energy crisis after the visit of the Bangladeshi delegation," says Petrobangla Chairman Md Abdul Mannan.

He told the FE that the Qatari company already had expressed intention to supply at least one LNG cargo soon and ensure smooth LNG supply from next year.

Sources have said supply halt of LNG by Qatar has been affecting Bangladesh badly as at least 70 per cent of Bangladesh-bound LNG delivery is currently being affected as a consequence.

According to S&P Global Energy CERA data, Bangladesh received about 60 per cent of its LNG-import requirements from Qatar in 2025.

Apart from QatarEnergy, several long-term and short-term suppliers, including OQ Trading International of Oman and US's Excelerate, also stopped supplying LNG to Bangladesh as they were to source it from Qatar, market insiders said.

Bangladesh is currently struggling to meet its gas demand amid elevated LNG prices and as contracted long-term LNG suppliers continue to restrict scheduled cargo deliveries, they said.

Due to disruptions to long-and short-term LNG supplies, Bangladesh is being compelled to rely more on volatile spot market to source LNG to mitigate potential shortages after supplies from the Middle East were restricted due to navigation disruptions through the Strait of Hormuz.

State-run Petrobangla is being compelled to buy LNG at over US$ 28 per million British thermal unit (MMBtu) to supply natural gas to industries, power plants, households and other gas-guzzling consumers.

If Qatar would supply LNG, the price would have less than half of spot market rates, even amid the current high price of energy on the international market with the Brent crude price hovering around US$96 per barrel.

The country's overall natural gas supply was about 2,334 million cubic feet per day (mmcfd) with 702mmcfd of regasified LNG, according to official Petrobangla data as of September 5.

Bangladesh's natural gas demand is around 4,000mmcfd, according to Petrobangla.

State-run Petrobangla has been rationing gas to industries, power plants and other consumers to cope with a supply shortage of natural gas.

The Bangladesh Bank (BB) has increased the annual foreign exchange travel entitlement for Bangladeshi nationals to $18,000 from $12,000, aiming to facilitate genuine travel-related foreign exchange requirements.

In a circular yesterday, the BB allowed authorised dealers (ADs) -- commercial banks permitted to handle foreign exchange transactions -- to release foreign exchange of up to $18,000, or the equivalent amount, per calendar year to an adult Bangladeshi national residing in the country for travel abroad.

The decision has been taken with a view to facilitating genuine travel-related foreign exchange requirements of Bangladeshi nationals and considering the evolving needs of international travel, said the central bank. The entitlement for minors below 12 years of age will remain at 50 percent of the amount admissible for adults.

The BB has also retained the existing restriction on the release of foreign exchange in the form of US dollar notes. Cash dollar releases will remain capped at $5,000 per person, within the applicable annual travel entitlement.

The move is expected to provide greater flexibility to Bangladeshi travellers in meeting legitimate expenses related to overseas travel, including tourism, family visits and other permissible purposes, said a senior BB official.

Bangladesh has one of the highest costs for remittance transfers among the least developed countries (LDCs), with the average transaction cost of sending remittances to the country standing at 7-8 percent.

According to the latest global trade update by the United Nations Conference on Trade and Development (UNCTAD), Bangladesh was featured in a 2023 remittance transfer benchmark by the World Bank.

Bangladesh is one of the top 10 remittance-receiving countries in the world, thanks to millions of migrant workers, mainly in the Middle East, who send money home, helping the country meet much of its external payment needs.

The UNCTAD report said LDCs account for half of the countries with the highest remittance costs globally. Benin and Angola have the highest remittance transfer costs, while Lao PDR and Haiti have the lowest among LDCs.

“However, real progress has been made, particularly in Africa,” said the UNCTAD report, released on September 4.

Bangladesh is one of the top 10 remittance-receiving countries in the world, thanks to millions of migrant workers, who send money home, helping the country meet much of its external payment needs

The report said mobile money use among adults in sub-Saharan Africa rose from around 27 percent in 2021 to about 40 percent in 2024. The Pan-African Payment and Settlement System (PAPSS) is also helping to lower cross-border transaction costs and reduce reliance on offshore clearing.

UNCTAD said trade in digitally deliverable services is growing rapidly, but LDCs are not keeping pace.

It said that over the past decade, global services exports expanded by about 6.7 percent annually, outpacing goods exports, and increased by 8.3 percent in 2025.

“The expansion of digitally deliverable services (DDS) has been an important driver of this growth, enabled by the spread of digital platforms, cloud computing and improved connectivity in some regions,” it said.

DDS trade grew faster than total services, at an average annual rate of 7.1 percent, and now represents 56 percent of global services exports.

LDCs have benefited far less from this growth. Their services exports grew by only 3 percent annually over the same period, while their share of global services exports, already below 1 percent in 2010, declined further to just 0.6 percent in 2025.

Moreover, digitally deliverable services, which include telecommunications, computer services and professional consulting, now account for 56 percent of global services exports. In developed economies, DDS accounts for 61 percent of services exports, compared with only 16 percent in LDCs.

After 2020, LDC DDS exports showed very little progress, widening the gap with the rest of the world, said the report.

The UNCTAD report also highlighted “servicification” — the growing use of services as inputs across all sectors, such as logistics, finance, design and data management.

“Servicification has emerged as a key driver of economic diversification, structural transformation and participation in global value chains,” it said.

By 2022, services accounted for 71 percent of global intermediate inputs, ranging from 78 percent in developed economies to 61 percent in developing economies. In LDCs, services accounted for 58 percent of intermediate inputs.

UNCTAD said services represent 33 percent of intermediate inputs in industrial goods exports globally, but this drops to just 13 percent in LDCs, including Bangladesh.

“Services should be viewed not only as a sector in their own right but also as critical inputs into the production and export of goods. The quality, cost and availability of services directly affect competitiveness and participation in global value chains across all sectors,” it said.

The role of services in developing countries’ trade is often underestimated because the services embedded in goods exports are not adequately measured, it added.

“Unlocking the benefits of servicification, the growing use of services as inputs across all sectors, requires targeted action to strengthen data governance, digital infrastructure, regulatory frameworks and participation in trade negotiations, particularly for developing and least developed economies,” it added.

The UNCTAD report said services are reshaping global trade, but poor connectivity, costly cross-border payments and skills gaps continue to restrict participation by developing countries.

“Artificial intelligence may widen the gap because computing capacity, data, finance and expertise remain concentrated in a few economies.”

The report also flagged sluggish progress in multilateral rules on digital trade. It said divergent provisions in regional and bilateral agreements have increased regulatory complexity.

“Developing countries need better data, stronger digital infrastructure and greater capacity to shape emerging rules.”

It is very concerning that, despite having sufficient deposits in their bank accounts, depositors cannot withdraw funds because of liquidity crises and the inability of many banks and NBFIs to honour cheques or requests. Serious patients could not receive medical treatment, while emergency family needs, including higher education, could not be met. A few banks and NBFIs are still running well, but they can be counted on one hand. The issue came to the surface after August 5 of 2024, when owners fled or went into hiding, boards were restructured, top management changed and, in some cases, the central bank appointed administrators.

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Political will to ensure good governance is critical. Putting the right people in the right places is also important. Undue interference by the government and regulators should be avoided.

The question is why this happened when the central bank is responsible for monitoring and regulating the banking and financial systems, alongside the Ministry of Finance. The position on bad loans was kept suppressed, with the central bank exercising undue power over the quantum of provisions for bad and doubtful debts. It introduced tripartite meetings after statutory audits and dictated matters to external auditors, jeopardising their independence. Our experience over the past decade shows this weak governance. Tripartite meetings should only resolve disputes between clients and banks. In Bangladesh, this mechanism has been thoroughly misused.

Governance failures are apparently the key reason for this situation. Laws, rules and regulations were not adhered to; policies were not followed as they should have been; directors, especially chairmen, did not play their role as custodians, and independent directors failed to meet the expectations of depositors. Internal audit teams also failed to play their due role. Undue board influence, lack of professionalism and weak ethical standards also contributed. The failures of external auditors and senior management cannot be ignored.

My experience as a nominated director of a state-owned bank for about two years and an NBFI for more than five years was rewarding. The NBFI managed its asset quality very well. Even as an auditor for an NBFI, I had to discontinue my audit after one year of a three-year rotation because of a disagreement over the quantum of provisions for bad and doubtful debts. Neither the central bank nor the Ministry of Finance asked me about my discontinuation.

In the absence of a strong capital market, the main source of business finance is funding from banks and NBFIs. When banks and NBFIs are weak, and in some cases insolvent, business, trade, and industrialisation have no way but to suffer, while economic growth is severely affected.

Institutions are built over many years. When they fail to perform and financial systems break down, restoring them is difficult. Bangladesh is experiencing such a phase.

Political will to ensure good governance is critical. Putting the right people in the right places is also important. Undue interference by the government and regulators should be avoided. In cases of gross negligence or motivated decisions, wrongdoers should be subject to independent investigation by credible agencies. If proved guilty, they should be held accountable. Bad practices must not be repeated.

Ultimately, the situation must be addressed with due attention to timelines. Delays can be costly, and Bangladesh cannot afford them. Based on media reports, it is also alarming that the economy is likely to turn around only after four years. Although there is no visible basis for this statement, it is nevertheless hopeful that at least a ray of hope can be seen. Let us hope for the best.

Bangladesh has resolved 48 of 61 non-tariff barriers identified in bilateral trade with the European Union (EU), while work is underway to address the remaining 13, Commerce Minister Khandakar Abdul Muktadir said today (6 September).

He disclosed the information at a joint press briefing at the Commerce Ministry in Dhaka following a meeting with officials of the EU Delegation to Bangladesh.

EU Ambassador Michael Miller, Adviser to the Finance and Planning Ministry Rashed Al Mahmud Titumir, State Minister for Foreign Affairs Shama Obaid, State Minister for Planning Zonayed Abdur Rahim Saki and senior officials of the commerce and foreign ministries attended the briefing.

The commerce minister said the EU had earlier raised concerns over several non-tariff barriers affecting bilateral trade. Of the 61 issues identified, 48 have been resolved, while efforts are continuing to address the remaining 13.

He said an EU delegation led by the bloc's ambassador had raised several specific trade-related obstacles in March after the government took office.

Since then, coordinated efforts involving the National Board of Revenue (NBR) and the agriculture, fisheries and livestock, and shipping ministries, among others, had helped resolve most of the issues.

Among the barriers addressed were complications over licence renewals for 100% foreign-owned logistics companies, an increase in the annual limit for importing commercial samples from $10,000 to $20,000, and customs valuation issues involving scanning smart cards used for export traceability.

The minister also said Bangladesh had formally sought EU support for its proposal to defer graduation from the least developed country (LDC) category by three years.

He expressed hope that the EU would support the proposal and that it would eventually be approved.

Muktadir said the issue is expected to come up for a decision at the 81st session of the United Nations General Assembly this month.

He said Bangladesh had therefore sought EU cooperation in support of the proposal.

The minister added that recommendations from the UN Committee for Development Policy (CDP) and the Economic and Social Council (ECOSOC) regarding the deferment proposal had been positive.

Preparations are also advancing for talks with the EU on a free trade agreement (FTA) and an investment protection agreement.

EU Ambassador and Head of Delegation Michael Miller said the European Commission had responded positively to Bangladesh's formal proposals for both agreements.

He said joint technical discussions could begin as early as this week once the necessary approvals from EU member states are completed.

Miller said a transparent, stable and competitive business environment would be necessary to deepen economic cooperation between Bangladesh and the EU.

He added that both sides would benefit from greater transparency and fair competition in public procurement.

The ambassador also expressed hope that discussions on Airbus procurement would move forward as part of efforts to expand aviation and trade cooperation between Bangladesh and the EU.

Responding to a question on imports from the United States, the commerce minister said Bangladesh makes import decisions based on national interest, economic rationale and public need.

He said government procurement decisions involving energy, including LNG, and foodgrains are approved after considering competitive prices, product quality and wastage rates.

Bangladesh's trade policy is not driven by the influence of any particular country, he said, adding that the country's economic interests and public welfare remain the main considerations behind such decisions.

European Union’s Ambassador Michael Miller yesterday called on the government to ensure a level playing field in Biman Bangladesh Airlines’ aircraft purchase, as the government is set to buy Boeing planes over European rival Airbus.

Speaking at a press conference following a meeting on non-tariff barriers in trade between Bangladesh and the EU at the commerce ministry, he also said the bloc was ready to launch formal negotiations towards signing a Free Trade Agreement (FTA) soon.
In response to journalists raising the issue of Biman’s aircraft purchase, the EU envoy said Bangladesh should take “public procurement” decisions “on the basis of commercial merit”.

“Our economic operators are able to compete as best they can with the economic operators from any given country,” Miller said.

“Actually, to get the best value for your taxpayers’ money, in our view, Airbus has an incredibly competitive offer. It should be taken very seriously and we look forward to the very swift conclusion of negotiations between Airbus and Biman,” the ambassador added.

A prospective Airbus deal had gained traction in 2023 through high-level European engagement. Under the previous Awami League government, a decision to buy 10 Airbus planes had been announced, but the interim government shifted towards Boeing after Sheikh Hasina’s ouster in August 2024 and amid pressure over US tariffs.

Later, Biman signed a $3.7 billion deal with Boeing on April 30 to acquire 14 aircraft, concluding more than three years of competition between Boeing and Airbus for the airline’s next major fleet order. Days later, Airbus submitted a fresh proposal to sell Biman 10 aircraft, which Biman was reportedly evaluating.

FTA TALKS AFTER ‘VALIDATION’ FROM EU MEMBERS

Speaking on the signing of an FTA, Miller said Bangladesh has requested for talks regarding an FTA and an investment protection agreement with the EU.

The European Commission president has already told Prime Minister Tarique Rahman that the EU is ready to explore where the common ground exists for the FTA, according to Miller.

He said negotiations on both the FTA and an investment protection agreement would begin once EU member states complete a validation process expected later this week.

He said such agreements typically cover a wide range of areas beyond tariffs, including e-commerce, intellectual property protection, and trade and human rights.

On Bangladesh’s request for support on a three-year deferment of its Least Developed Country (LDC) graduation, Miller said the EU has been discussing the frictions in the relationship and the steps the government has taken or plans to remove them.

“At a moment when the international rules-based order is under incredible pressure, we are your reliable partners,” he said.

“We believe in the rule of law, we believe in fair and transparent procedures, we believe in multilateralism, all of which should be music to the ears of Bangladeshi colleagues, businessmen and citizens,” he added.

Meanwhile, Commerce Minister Khandakar Abdul Muktadir said Bangladesh has resolved 48 of 61 non-tariff barriers raised by the EU and is processing solutions for the remaining 13, after the EU flagged them in March.

A decision on Bangladesh’s request for LDC deferment is expected at the UN General Assembly’s 81st session later this month.

Talks to launch FTA negotiations may begin in the near future, he added.

The minister also mentioned two recent US purchases as examples of value-based procurement.

He cited an American company’s offer to supply 117 LNG cargoes through 2038 at an average price of around $9, based on index pricing, which the cabinet committee on government purchase approved.
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“We considered that to be a good offer, so we approved it,” he said,

The minister also cited wheat imports from the US. “Compared with wheat that we import from other sources, the percentage of wastage in that wheat is much lower. If you translate that into monetary value, it becomes more cost-effective.”

He said when it comes to making purchase decisions, instead of just considering the face value, several factors have to be taken into account, including overall savings, the long-term benefits.

“Whenever we make any purchase – from America, the European Union, or anywhere else, including China or India – we try to apply our best judgment based on the merits of each purchase individually,” the minister added.