The National Board of Revenue (NBR) fell Tk 41,879 crore short of its revenue target in the first quarter of the current fiscal year, as collection grew by less than 2 percent year-on-year.

The tax authority collected Tk 92,517 crore in July-September against a target of Tk 134,396 crore, according to NBR sources. Collection stood at Tk 90,825 crore in the same period of the previous fiscal year.
NBR officials partly attributed the sluggish collection to a change in value-added tax (VAT) return rules, which allowed businesses to file returns quarterly instead of monthly.

Many businesses did not submit returns in July and August, contributing to lower VAT collection in September, they said.

The government restored monthly VAT return filing earlier this month amid concerns over revenue collection and operational difficulties.

Officials, however, said the change was not the sole reason for the shortfall. They also blamed poor management by the current NBR administration and a lack of dynamism among field-level officials.

The weak start has raised concerns over the NBR’s ability to meet its ambitious annual revenue target of more than Tk 600,000 crore.

Md Deen Islam, research director of the Research and Policy Integration for Development (RAPID), said sluggish revenue collection could constrain government spending at a time when the economy needs investment to support growth and job creation.

He warned that higher government borrowing could crowd out private-sector credit, making it harder for businesses to invest and expand production.

“The private sector is already facing a credit crunch and very high borrowing costs. If public-sector borrowing increases further, we may see a crowding-out effect. Those who will suffer the most are businesses engaged in the productive sector,” he said.

Deen added that inflation could also come under pressure.

If government borrowing reduces credit available to private businesses and weakens productivity, controlling prices could become more difficult, he said.

Weak economic growth is itself weighing on revenue collection, creating a cycle in which lower receipts restrict public spending, according to Deen.

“If production declines, revenue collection falls. When economic growth fails to reach the expected rate, the government collects less revenue, which further constrains its ability to spend,” he said.

He described the emerging situation as a shift towards procyclical fiscal policy, in which weak growth and lower revenue collection reinforce each other, limiting the government’s ability to support demand during a slowdown.

“This is concerning because, when fiscal policy becomes procyclical, the government’s ability to address economic challenges declines,” he said.

Prolonged fiscal constraints could also affect social protection, education and other public services, potentially widening inequality, he added.

Towfiqul Islam Khan, additional research director of the Centre for Policy Dialogue (CPD), said the shortfall stemmed from several factors, including the VAT filing change, a slowdown in economic activity and weaknesses in revenue administration.

It is too early to assess the full impact of quarterly VAT filing, as figures due in October will give a clearer picture of the trend, he said.

Banking sector reforms could also affect tax receipts, Towfiqul said. As banks make higher provisions against bad loans, their reported profits may fall, reducing their corporate tax payments to the government.
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A significant shortfall was a concern even during budget preparation, he said.

Under an optimistic collection scenario, he estimated that the gap could reach around Tk 1.30 lakh crore this fiscal year unless revenue mobilisation improves substantially.

Towfiqul said the government should consider revising the budget to reflect the actual fiscal situation rather than holding to the original targets without addressing the emerging gap.

“Presenting the actual fiscal situation transparently is important for building public confidence in the government,” he said, stressing the need for stronger revenue administration, structural reforms and greater accountability in public financial management.

Savings certificate sales are rising as falling bank deposit rates push ordinary savers towards an investment that they see as safer and offers relatively higher returns, with net sales in July-August already reaching nearly 29% of the government's target for the entire year.

Net sales stood at Tk2,463 crore in July-August, according to data from the Department of National Savings. If the current pace continues, net sales could reach about Tk14,779 crore by the end of the fiscal 2026-27, which is around Tk6,279 crore more than the government's budget target of Tk8,500 crore.

The department informed the finance ministry of the trend in a report on 17 October, saying a review of savings certificate sales and encashments up to August showed an increase in sales.

The projection, however, is based on the average monthly net sales recorded during the first two months, it said. The final figure could change depending on sales and encashments in the remaining months of the financial year.

The increase is also evident in gross sales.

The National Savings Department said Tk18,576 crore worth of savings certificates were sold in July and August, against a government target of Tk11,957 crore for the period. Sales were therefore 55.36% higher than the target.

For the full financial year, the government has set a target of selling Tk71,743 crore worth of savings certificates. The department said in its report that, if the sales trend seen in the first two months continues, total sales could reach Tk1,11,459 crore during the year.

Falling bank deposit rates

The rise comes as banks have been cutting deposit rates, widening the gap between returns on savings certificates and conventional bank deposits.

Savings certificates currently offer returns ranging from 10.41% to 10.59%, depending on the amount invested and the maturity period. By comparison, several large commercial banks have reduced the interest rate on one-year fixed deposits to around 7.50%.

Sources at Bangladesh Bank said several banks had cut deposit rates for the second time in two months, with some reducing rates by between 50 and 100 basis points.

Although bank deposits are increasing, weak demand for private-sector credit has reduced banks' need to offer higher rates to attract new deposits. This has made savings certificates more attractive to savers seeking higher returns without taking on the risks associated with other investments.

Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue, said the banking sector had been experiencing excess liquidity for a long time while private-sector credit growth remained weak.

"In such a situation, deposit rates in the banking sector are falling. At the same time, people are turning to savings certificates in search of relatively higher interest and safe investment over the long term," she told TBS.

She said the rise in savings certificate investment would increase the government's borrowing as well as its interest payments, putting further pressure on budget management.

"A large portion of the government's budget is already being spent on debt repayment and interest payments," she said. "The growing sales of savings certificates could add further to this burden."

Fahmida also noted that ordinary people had few safe and attractive investment options in the country.

"Investment in the stock market carries risks because of its volatility. On the other hand, the bond market has yet to become sufficiently attractive to ordinary investors. As a result, people are relying on savings certificates in the hope of earning relatively safe and fixed returns," she said.

The reliance on certificates

With the government keeping savings certificate rates unchanged through December and bank deposit rates falling, savings certificates have become increasingly attractive to savers.

The difference is particularly significant for people who rely on their savings to meet household expenses amid inflation.

Retired employees, pensioners, middle-class families and small savers are among the main investors in savings certificates, many of whom depend on regular returns. They often invest their retirement savings, proceeds from the sale of land or other assets, or money accumulated over many years.

For these investors, the key attractions are relatively higher returns, a steady income over a fixed period and the security of a government-backed investment.

Rising sales of savings certificates, however, present a mixed picture for the government.

On the one hand, the instruments provide the government with a source of domestic borrowing from outside the banking system. On the other, their relatively high returns mean that the government will face higher interest-payment obligations in the future.

The pace of investment in savings certificates will therefore have a direct bearing on the government's borrowing needs and debt-servicing costs for the remainder of the financial year.

Economists and bankers have raised concerns over the misuse of bank loans, weak private investment, and growing problems in Bangladesh's banking sector, calling for stronger governance and safeguards against financial irregularities.

Speaking at the 11th Annual Banking Conference 2026 in Dhaka today (28 October), economist and former planning and education adviser to the interim government Wahiduddin Mahmud questioned whether new bank loans were reaching genuine businesses and whether safeguards were in place to prevent past irregularities.

"New loans are being disbursed, but what guarantees are there that they are being used properly? Who can ensure that the misuse of bank loans, as seen in the past, is not happening again?" he said.
Wahiduddin warned that regulatory relaxations could lead to a repeat of past abuses if loans were misappropriated instead of reaching genuine businesses.

He said private banks were gradually improving, while state-owned banks remained in an even worse condition.

"State-owned banks are entirely politically influenced. Every government has enabled various forms of abuse of these banks in the name of providing opportunities," he said.

Wahiduddin said Bangladesh Bank alone could not resolve the problems facing state-owned banks and that the government must take responsibility.

Stressing the need for ethics in the banking and corporate sectors, he said, "Regardless of how many laws are in place, no country can perform well without ethics."

Weak governance threatens banking stability

Zaidi Sattar, chairman of the Policy Research Institute of Bangladesh (PRI), said Bangladesh's banking sector was facing severe financial stress due to high non-performing loans, provisioning shortfalls and widespread undercapitalisation.

"Banking quality matters as much as its size. Weak governance, poor lending and inadequate supervision waste resources, weaken monetary policy and create fiscal burdens," he said.

Sattar said lending had long been concentrated among certain firms and banking groups, while large-scale loan irregularities before the fall of the autocratic regime in August 2024 had further deepened the crisis.

"Fiscal policy must respect financing limits, while Bangladesh Bank needs operational autonomy to maintain price and financial stability," he said.

He also said depreciation could raise domestic import prices by around 40%, assuming unchanged global prices, while international oil, gas and fertiliser prices had also increased.

Private sector credit growth almost stagnant

Mashrur Arefin, managing director and CEO of City Bank, said private sector credit growth remained almost stagnant despite official figures showing growth of around 4%.

He said businesses were reluctant to open large letters of credit (LCs) for machinery imports and factory expansion, indicating weak investment demand. Export growth had also slowed, while lower imports had contributed to rising foreign exchange reserves.

"Despite the election and an apparently stable overall situation, businesspeople remain concerned about the political climate, contributing to uncertainty over investment decisions," he said.

Arefin said high inflation and stagnant trade reflected persistent economic weakness, while the central bank's refinancing schemes and support packages were unlikely to have much impact.

He said international lenders were aware of the divisions within Bangladesh's banking sector, where some banks remained strong while others struggled. The overall capital adequacy ratio had reportedly fallen to negative 2.72%, he added.

"Banks have increasingly invested in government treasury bills and bonds, generating good returns in the short term," he said.

However, such investments would not be sustainable if private businesses remained under pressure. The economy could not sustain growth unless businesses regained confidence and were willing to invest, he added.

Action against wilful defaulters urged

Referring to the Middle East war, Bangladesh Bank Deputy Governor Md Kabir Ahmed said, "During the war, the central bank did not buy a single dollar. That's why our exchange rate is stable."

Abdul Hai Sarker, chairman of Dhaka Bank, called for government action against wilful loan defaulters, including freezing their assets.

"80% of defaults are wilful, and 20% are not. Wilful defaulters have assets in Chattogram, Dhaka and several other districts; the government should take action to freeze them," he said.

He also stressed the need to address the broader problems facing the banking sector.

Following an IPO hiatus of more than two years amid political changes and structural reforms to capital-raising regulations, Confidence Power and Energy PLC has broken the silence by filing an application with the capital market regulator and stock exchanges to raise Tk400 crore.

The power sector company submitted its application today (28 October), following a 10-day roadshow as part of preparations for its initial public offering (IPO), according to sources. It plans to raise the funds through the book-building method.

Techno Drugs was the last company to raise money from the market through book-building, securing Tk100 crore at the beginning of 2024. After the fall of the Awami League-led government in August 2024 amid mass student protests, no further IPO applications were submitted to raise capital.

The pause also coincided with a review of capital-raising regulations and amendments to the previous rules.

Under the new rules, Confidence Power has set an indicative share price of Tk242. Eligible investors participating in the bidding process to determine the cut-off price can bid within a band of 25% above or below the indicative price.

The company plans to use the Tk400 crore in proceeds to develop two solar power projects, a 100MW (AC) grid-connected solar power plant in northern Cox's Bazar and another 100MW (AC) plant in Mongla, Bagerhat, as well as partially repay its bank loans, according to its prospectus.

It has allocated 83% of the IPO proceeds to land purchases and civil construction for the two projects, 15% to loan repayment and the remaining 2% to IPO-related expenses.

Of the proceeds, Tk230 crore will be invested in the 100MW solar project in Chattogram, while Tk102 crore will be invested as equity in the 100MW Mongla project, a joint venture with Doreen Power.

The company will use another Tk60 crore to partially repay loans from City Bank and BRAC Bank, while Tk8 crore has been earmarked for estimated IPO expenses.

Confidence Power and Energy began commercial operations in 2019, with a focus on setting up power plants to generate electricity for supply to Bangladesh's national grid.

The company has four subsidiaries: Confidence Power Bogra, Confidence Power Rangpur, Zodiac Power Chittagong and Confidence and Doreen Power Ltd.

However, Confidence Group plans to invest more than Tk4,000 crore in 400MW of solar power capacity by 2028 as it seeks to diversify beyond heavy fuel oil and meet rising electricity demand.

Confidence Power and Energy will invest around Tk2,150 crore in two 200MW solar projects, with 100MW each in Chattogram and Bagerhat. The Bagerhat project, near Mongla, will be developed as a joint venture with Doreen Power, which will hold a 60% stake.

Confidence Enterprises and Confidence Power and Energy also plan to invest another Tk2,000 crore in a separate 200MW solar power plant in Fatikchhari.

According to financial statements audited by A Qasem & Co, Confidence Power reported revenue of Tk1,771 crore and net profit after tax of Tk477 crore in the 2025–26 fiscal year.

In the previous fiscal year, its revenue stood at Tk2,399.73 crore and net profit at Tk486.42 crore. The company projects that annual revenue will rise to Tk3,796 crore over the next five years, while net profit is expected to increase to Tk976 crore.

Confidence Power's total assets stood at Tk5,163 crore as of June 2026, up 22% from a year earlier, according to its financial statements. The company had retained earnings of Tk2,665 crore, having retained its profits without recommending dividend payments to shareholders.

Its outstanding bank loans totalled Tk818 crore, including Tk300 crore borrowed by Confidence Power Bogra and Tk241 crore by Confidence Power Rangpur for project financing.

Bangladesh Building Systems PLC (BBS) and Information Services Network Ltd (ISN) have been downgraded from the "B" category to the "Z" category after failing to declare dividends for two consecutive years.

Both companies also reported losses per share for the financial year ended 30 June 2026. The reclassification took effect today (28 October).

With the latest changes, the number of companies in the "Z" category on the Dhaka Stock Exchange (DSE) has risen to 129.

The two companies' share prices moved in opposite directions on the day of the downgrade. ISN's share price fell 8.35% to Tk37.30 on the DSE today, while BBS shares rose 1.14% to Tk8.90.

According to DSE disclosures, BBS's board has recommended no dividend for FY26. The company reported a loss per share of Tk0.91 for the year.

BBS's net asset value (NAV) per share declined to Tk10.69 from Tk10.74 a year earlier.

The company's annual general meeting (AGM) is scheduled for 15 December in a hybrid format. The record date has been set for 17 November.

Meanwhile, ISN's board has also recommended no dividend for FY26. The company reported a loss per share of Tk0.51, compared with a loss of Tk0.43 in the previous financial year.

ISN's NAV per share fell to Tk1.91 from Tk2.42 a year earlier. ISN's AGM will be held on 30 November in a hybrid format. Shareholders can attend in person at the company's head office on New Eskaton Road in Dhaka or participate through a digital platform. The record date has been set for 18 November.

According to separate DSE announcements, the category changes were made under provision 1(a) of a Bangladesh Securities and Exchange Commission (BSEC) directive issued on 20 May, 2024. The provision requires companies that fail to declare dividends for two consecutive years to be placed in the "Z" category.

In addition, stockbrokers and merchant bankers have been instructed not to provide loans to investors for purchasing shares of either company.

Investors should assess the companies' financial statements, business conditions and future prospects before making investment decisions.

The Cabinet Committee on Government Purchase has recommended approval of six procurement proposals, including the import of 1,50,000 tonnes of muriate of potash (MOP) fertiliser from Canada and Russia.

The proposals include four from the Ministry of Agriculture, one from the Ministry of Food and one from the Energy and Mineral Resources Division.

The recommendations were made at the 53rd meeting of the Cabinet Committee on Government Purchase, held virtually this evening (28 October). Finance Minister Amir Khosru Mahmud Chowdhury chaired the meeting remotely from Japan.

Under the agriculture ministry's proposals, the government will import 80,000 tonnes of MOP fertiliser from Canada and 70,000 tonnes from Russia.

Two proposals involve importing a total of 80,000 tonnes from the Canadian Commercial Corporation (CCC), a Canadian government agency, under an existing agreement. Each proposal covers 40,000 tonnes at $382.38 per tonne, with an estimated cost of Tk1,888,957,200 per shipment.

The other two proposals involve importing a total of 70,000 tonnes from Russia's JSC Foreign Economic Corporation Prodintorg. Each covers 35,000 tonnes at $382.38 per tonne, with estimated costs of Tk1,654,175,880 and Tk1,655,514,210, respectively.

The committee also recommended approval of a proposal from the Directorate General of Food to procure one crore jute sacks, each with a capacity of 30kg, through an open tender under the e-GP system.

The procurement will be divided into 50 packages, with 13 companies recommended for the contracts. The total contract value is Tk644,184,800.

Another proposal, from the Energy and Mineral Resources Division, concerns the purchase of one cargo of liquefied natural gas (LNG) from QatarEnergy Trading LLC under a long-term agreement.

The cargo is scheduled for delivery around 23 December at a price $0.10 per million British thermal units (MMBtu) below the existing long-term contract price, based on the Japan Korea Marker (JKM) benchmark. The committee recommended approval of the proposal.

US wheat import proposal discussed

Separately, the Cabinet Committee on Economic Affairs discussed a proposal from the Ministry of Food at its 36th meeting today.

The committee gave in-principle approval to negotiate with the lowest bidder among two companies authorised by US Wheat Associates to supply wheat under a government-to-government arrangement with the United States.

United Finance PLC's net profit rose 56% year on year to Tk6.6 crore in the first nine months of 2026, while operating profit increased 39% to Tk31.1 crore, driven by growth in lending, investments and customer deposits.

The non-bank financial institution (NBFI) disclosed its unaudited financial results for the period ended 30 September following approval at a board meeting today (28 October).

The company's portfolio of loans, advances and investments grew 11% to Tk2,547 crore at the end of September, reflecting business expansion amid sluggish private sector credit growth.

Customer deposits increased 31% to Tk1,729 crore during the period, strengthening the company's funding base and capacity to extend credit.

United Finance also expanded its focus on sustainable financing. Green and sustainability-linked financing accounted for 83% of its total disbursements in the first nine months of 2026, up from 75% in the same period last year.

Mohammed Abul Ahsan, acting managing director of United Finance, said the company continued to support micro, cottage and small entrepreneurs despite sluggish private sector credit growth.

He said stronger due diligence and governance had helped improve portfolio quality alongside lending expansion, while deposit growth reflected customers' confidence in the company.

United Finance maintained a capital adequacy ratio of 16.36% at the end of September, above the regulatory minimum of 10%.

The company also said it maintained provisions above regulatory requirements and liquidity above the prescribed level to protect depositors' interests and meet customer obligations.

BRAC Bank PLC's consolidated net profit after tax rose 38% year-on-year to Tk2,120.95 crore in January-September 2026, up from Tk1,535.86 crore a year earlier, according to its un-audited financial statements.

Standalone net profit climbed about 50% to Tk1,583.81 crore from Tk1,055.20 crore.

The stellar bottom-line performance was backed by strong revenue expansion. Consolidated revenue income saw healthy growth across key streams, with total operating income climbing to Tk7,726 crore for the nine-month period, compared to Tk6,135 crore in the same period of 2025.

Specifically, cumulative net interest income grew to Tk1,655 crore from Tk1,166 crore, while investment income expanded substantially to Tk4,143.64 crore against Tk3,394.37 crore.

Despite the asset expansion, the bank maintained disciplined credit risk management. Total classified loans for the group stood at Tk1,910.55 crore as of 30 September 2026, representing a low classified loan ratio of 2.45% (and 2.27% on a solo basis).

Reflecting the higher profitability and stronger balance sheet, BRAC Bank's consolidated net asset value per share surged to Tk56.40.

Earnings per share —attributable to the parent company—jumped significantly to Tk7.70 for the first nine months of 2026, up from Tk5.29 in the same period last year.

Meanwhile, in the third quarter (July-September), the bank posted a net profit of Tk697.50 crore, which was 11% higher from the previous year at the same time.

Former adviser of the interim government Dr Wahiduddin Mahmud has said the culture of bank-loan default has transformed into a culture of looting, badly impacting the banking sector.

"That is why the financial sector has reached its current state," he said at the inaugural session of a two-day annual banking conference organised by the Bangladesh Institute of Bank Management (BIBM) in the capital on Wednesday.

Recalling earlier banking reforms, he said considerable efforts had been made to curb loan default through rules and regulations, as well as restore discipline in the sector.

"We managed to come out of the culture of loan default after much effort. We also brought some private banks closer to international standards.

"But afterwards, a culture of bank looting emerged. This is more serious. Money was taken out of banks without following any rules and regulations," he said.

Dr Mahmud said Bangladesh had repeatedly failed to learn from its past banking experience.

Private banks were allowed to be established in the late 1980s without an adequate regulatory framework, he said, resulting in sponsor directors borrowing an amount equivalent to around one-third of some banks' deposits.

"There should have been rules on whether a group or family could control multiple banks. This should come under an anti-trust law. We still do not have an anti-trust or anti-monopoly law," he said.

He also criticised political influence over state-owned banks, saying such institutions had often been used to distribute political patronage.

"Using the banking or financial sector for political patronage is absolutely inappropriate," he said, adding that the Bangladesh Bank should have equal authority over state-owned and private banks.

He warned against repeating the previous policy of relaxing regulations to rescue weak banks.

"Now, to rescue weak banks, we may have to relax some rules again. But where is the guarantee that we will not repeat the same process that brought us to the current situation?" he asked.Bangladesh Economic Report

Policy Research Institute (PRI) Chairman Dr Zaidi Sattar said the banking sector was facing severe balance sheet stress, marked by exceptionally high non-performing loans (NPLs), provisioning shortfalls, and widespread undercapitalisation.

"Bangladesh can neither restore growth with a crippled banking system nor defeat inflation through high interest rates alone," he said while discussing the country's macroeconomic challenges.

Dr Sattar said exchange rate depreciation has become a major driver of inflation, raising the domestic cost of imported fuel, food, intermediate goods, and capital machinery.

He noted that the taka had depreciated from around Tk 86 per US dollar in May 2022 to about Tk 123, representing roughly 40 per cent depreciation.

He proposed a "compensated depreciation" policy involving tariff reductions to offset the inflationary impact of currency depreciation and improve export competitiveness.

Tariffs could be reduced by 10-20 per cent, he suggested.

Bangladesh Bank Deputy Governor Dr Md Kabir Ahmed said the current banking crisis had developed through a chain of external shocks, reserve depletion, exchange rate pressure, corporate sector stress, and rising banking sector risks.

As non-performing loans increased, capital weakened, provisioning capacity declined, and credit growth slowed, eventually affecting economic growth, he said.

He said the central bank's immediate response had been to rebuild foreign exchange reserves and maintain exchange rate stability.Economic Forecast Report

The banking regulator rebuilt reserves to roughly six months of import cover before the Iran-US conflict and avoided purchasing dollars during the conflict, helping preserve exchange rate stability, he also said.

Dr Ahmed said the banking sector must now be repaired because banks are the principal suppliers of capital to the real economy.

Association of Bankers, Bangladesh (ABB) Chairman and City Bank Managing Director and CEO Masrur Arefin said recent reforms and restructuring of bank boards could pave the way for recovery, but he warned that the damaged culture could not be corrected overnight.

He expressed concern over virtually stagnant credit growth, saying businesses remained reluctant to open large letters of credit for capital machinery and factory expansion.

Sluggish imports and exports also reflected weak economic activity, he said, noting that the Purchasing Managers' Index (PMI) had fallen to 48 from around 57-58 earlier, indicating contraction.

Mr Arefin said business confidence remained weak despite political stability following the election, while cash flow problems were discouraging businesses from expanding.

Bangladesh Association of Banks (BAB) Chairman Abdul Hai Sarker said policies designed for developed economies should not be imposed mechanically on developing countries.

Policy, he said, must reflect a country's level of development, institutional capacity, and national circumstances. Applying developed countries' compliance standards without adequate support could ultimately make developing countries unable to comply, he said.

Chairing the conference, BIBM Director General Dr Md Ezazul Islam called this year's conference theme "both timely and compelling".

High financing costs, subdued investment, infrastructure bottlenecks, and global uncertainty had intensified economic challenges, he said, while weaknesses in governance, asset quality, and accountability had eroded confidence in financial intermediation.Climate Finance Consulting

"Banking, above all, rests on trust," he said. "Without it, savings cannot be efficiently channelled into productive investment."

He called for a practical, credible, and balanced reform agenda, including stronger corporate governance, improved asset quality, and capital adequacy. World Bank Division Director for Bangladesh and Bhutan Jean Pesme also spoke in the opening session of the conference.

Bangladesh Bank (BB) has taken several initiatives to accelerate the digitisation of financial transactions to curb corruption, reduce transaction costs and boost revenue mobilisation, targeting an increase of 3 to 3.5 percentage points in the country's tax-to-GDP ratio within the next two years.Bangladesh Economic Report

Bangladesh's tax-to-GDP ratio, based on provisional National Board of Revenue (NBR) collection data, stood at 6.78 per cent in the fiscal year 2025-26, up from 6.70 per cent in FY2024-25, reports BSS.

“Comprehensive digitisation could widen the tax base, improve transparency and bring more economic activities under the formal financial system,” said Md. Sirajul Islam, executive director of Bangladesh Bank.

Sirajul Islam said Pakistan had made significant progress in increasing its tax-to-GDP ratio over the past two fiscal years by accelerating the digitisation of its transaction processes.

According to Pakistan’s Federal Board of Revenue (FBR), the country’s tax-to-GDP ratio rose from 8.8 per cent to 10.3 per cent over the last two fiscal years.

Through full digitisation, Sirajul Islam said Bangladesh could also improve revenue mobilisation by accelerating the transition from cash-based transactions to digital payments.

He said the initiative would help reduce corruption and transaction costs while strengthening the government's capacity to collect taxes through more transparent and traceable economic activities.

As part of the drive, Bangladesh Bank is set to introduce person-to-person (P2P) money transfers through Bangla QR from November 1, allowing customers to transfer money between participating bank and mobile financial service accounts by scanning another person's QR code or uploading its image through their mobile applications.

The new facility is expected to expand the use of digital payments beyond merchant transactions, making it easier for individuals, small traders and informal-sector workers to send and receive money without relying on cash.Economic Forecast Report

Bangladesh Bank has also directed banks, mobile financial service providers, payment service providers and payment system operators to integrate the necessary features into their applications to facilitate the service.

The central bank has taken several measures to make digital transactions more affordable. From October 1, 2026, it set the interchange reimbursement fee for Bangla QR transactions at zero and introduced immediate settlement of payments to merchants.

These measures are intended to reduce transaction costs and encourage wider adoption, particularly among small businesses.

A 2022 International Monetary Fund (IMF) study, titled Bangladesh: Selected Issues, estimated that improving government digitalisation to the level of the best-performing countries could generate potential overall revenue gains equivalent to about 3 per cent of GDP through improved efficiency in value-added tax (VAT), personal income tax and corporate income tax collection.

The estimate provides a potential basis for the initiative, although it represents a modelled outcome rather than a guaranteed revenue increase within two years.

A Bangladesh Bank study, titled The Cost of Cash Study in Bangladesh: A Comparative Analysis of Cash and Digital Payment, estimated that cash transactions cost the economy Tk 1.70 trillion annually, equivalent to 3.24 per cent of GDP in 2023. In comparison, the annual cost of the digital payments ecosystem was estimated at Tk 59.64 billion, or 0.11 per cent of GDP.

The annual per capita cost of cash transactions was estimated at Tk 9,938, compared with Tk 348 for digital payments.

Sirajul Islam said cash management involved considerable expenses, starting with the import of raw materials required to print banknotes.

“Printing banknotes, transporting them and managing their circulation involve considerable costs for Bangladesh Bank,” he said.

He added that banknotes become old, damaged or torn through regular use and must be replaced, creating recurring expenses. Wider adoption of digital payments could reduce these costs while helping curb corruption, theft and the misuse of money.

The study estimated that banks bear Tk 368 billion in annual cash-related costs, equivalent to 0.70 percent of GDP, while consumers incur Tk 280 billion, or 0.53 per cent of GDP. Bangladesh Bank's own cash-related costs were estimated at Tk 4 billion annually.

These expenses include printing and distributing currency, transporting and securing cash, maintaining bank branches and automated teller machines, and the time people spend withdrawing, carrying and handling money.

Digitisation could improve tax compliance

Digital transactions generate electronic records that could help tax authorities monitor economic activities, identify undeclared income and improve compliance with income tax and VAT regulations.

Achieving the proposed increase in the tax-to-GDP ratio would require efforts beyond digitising payments, including closer integration of banking records with tax administration, wider electronic VAT invoicing, stronger electronic tax filing and payment, and improved information-sharing among government agencies.

Greater coordination between Bangladesh Bank and the National Board of Revenue (NBR), commercial banks and payment service providers would be important to ensure that digital transaction records support effective revenue collection.Bangladesh Economic Report

The fiscal benefits would also depend on bringing previously untaxed economic activities into the formal system and enforcing tax regulations effectively.

A successful transition towards a more transparent and digitally connected financial system could nevertheless reduce cash-management costs, improve accountability and strengthen domestic resource mobilisation to support the country's development priorities.

South Korean chip giant SK hynix on Wednesday reported a 632 percent surge in third-quarter operating profit, fuelled by booming demand for AI semiconductors, and unveiled plans to return an additional $45 billion to shareholders.

The company is a specialist supplier of high-bandwidth memory (HBM) chips to US industry behemoth Nvidia, and a pillar of South Korea’s tech-led economy.

Operating profit for its July-September period reached 83.33 trillion won ($62.8 billion), about seven times the year-ago level, the company said.

The company is a specialist supplier of high-bandwidth memory (HBM) chips to US industry behemoth Nvidia

Net profit jumped 215.7 percent on-year to 39.77 trillion won, while sales reached 104.61 trillion won.

The firm said it had posted record revenue and operating profit for six straight quarters since April-June last year.

However, the net profit reading fell short of market expectations, with the average analyst estimate at 59.67 trillion won, according to South Korea’s Yonhap news agency, citing its own data firm.

“SK hynix analysed that a virtuous cycle has taken hold in which AI-driven productivity gains and new revenue generation in areas such as software development, customer service, and search lead to greater AI adoption,” the chipmaker said in a statement.

SK hynix also announced Wednesday an additional plan to return 60 trillion won to shareholders, following the completion of a 40 trillion-won shareholder return programme.

Record profits from booming AI memory demand have fuelled calls for greater shareholder returns, especially since the company’s stock sank significantly from its June record high on concerns over US tech firms’ AI spending.

The announcement also came after the company last week said it would discontinue a planned US listing of its Solidigm unit, citing market volatility -- after South Korean authorities raised concerns over shareholder interests.

The company also said it planned to return most of the gains from its investment in Japan’s Kioxia through special dividends in the third quarter and at fiscal year-end. The global race to build AI data centres has transformed the company’s fortunes, despite concerns that the sector may be overvalued.

Demand is surging for chips known as DRAM and storage components called NAND, which are found in everyday gadgets but are also needed to help process the vast amounts of data crunched by generative AI.

Analysts say soaring DRAM prices amid a global shortage and stronger sales of high-margin high-bandwidth memory (HBM) have driven earnings, while the AI boom has also lifted prices and shipments of conventional NAND chips.

Long-term agreements established with major customers, including Nvidia, signal “another phase of price increase across both conventional DRAM, NAND and HBM”, MS Hwang, an analyst at market research firm Counterpoint, told AFP.

“This indicates that quarterly earnings have not yet reached their peak and that the upward trajectory will likely sustain at least through 2027.”

Sheng Win Chow, an analyst at Omdia, said SK hynix could now face contrasting risks across its conventional memory and HBM businesses.

Omdia estimates global smartphone shipments fell 20 percent on-year in the third quarter, as production capacity shifted toward HBM and conventional memory prices rose.

Conventional DRAM used in smartphones, PCs and tablets offers lower margins but more predictable cash flow, while higher-margin HBM is increasingly tied to a debt-funded AI infrastructure boom, Chow said.

“With credit now tightening around that buildout, the balance between dependable, lower-margin conventional memory and higher-margin but credit-dependent HBM becomes less a margin question than a risk-management one, a dynamic I’d watch,” he told AFP.

South Korea’s AI chip boom has sparked debate over how to spend surging tax revenue from SK hynix and its domestic rival Samsung Electronics.

SK hynix’s shares soared 10.9 percent Wednesday, dragging the Kospi index up more than six percent and providing a healthy boost to other regional AI-linked firms.

But they have been under pressure since June as investors largely shrugged off record quarterly earnings that had already been priced in.

“Stock prices tend to anticipate future conditions rather than simply reflect current earnings,” Kim Dae-jong, a professor of business administration at Sejong University, told AFP.

“The concern is that the extraordinary level of earnings the company is generating today may not be sustainable one or two years from now, and I believe that concern is already being reflected in the share price.”

Bangladesh faces no risk of essential commodity shortages ahead of Ramadan, as sufficient supplies are already in the import pipeline to meet normal demand during the month, Commerce Minister Khandakar Abdul Muktadir said yesterday.

The government also has no immediate plans to increase edible oil prices, he said.

The minister made the remarks while responding to journalists before a meeting with importers and business leaders representing trade bodies at the commerce ministry in Dhaka.

Muktadir said the government had reviewed the supply situation ahead of Ramadan, considering expected demand for import-dependent essentials, including edible oil, chickpeas, pulses and sugar.

He said sufficient quantities of the required goods were already in the import pipeline to maintain stable supplies.

However, fluctuations in international commodity prices and shipping freight rates remained important factors in determining import costs and domestic market prices, according to a statement from the commerce ministry.

The minister reiterated that the government had no plans to raise edible oil prices at present. Noting that chickpea prices had increased slightly in the international market, he said discussions were underway with importers. He also stressed that the government remained vigilant in ensuring uninterrupted supplies and market stability.

Asked whether businesses were facing difficulties opening letters of credit (LCs) to import goods, Muktadir said no major complaints or obstacles had been reported so far.

He assured importers that if they encountered difficulties involving LC margins or other banking issues, the ministry would discuss the matter with Bangladesh Bank and take the necessary steps.

According to recent data from the Bangladesh Trade and Tariff Commission (BTTC), imports of five major essentials -- edible oil, sugar, chickpeas, red lentils and dates -- increased between July 1 and October 25 compared with the same period a year earlier.

Import commitments, measured by the opening of LCs, also increased for several items, suggesting that supplies could receive further support from upcoming shipments, although international prices, import costs and domestic market conditions will remain crucial to keeping prices stable.

Imports of key Ramadan commodities increased year-on-year. Edible oil imports rose to 8.23 lakh tonnes from 7.05 lakh tonnes, while letters of credit (LCs) opened reached 8.05 lakh tonnes. Soybean seed imports increased by 1.13 lakh tonnes to 5.01 lakh tonnes.

Sugar imports grew to 6.87 lakh tonnes, with LCs at 8.10 lakh tonnes. Chickpea imports surged to 82,000 tonnes from 12,000 tonnes, while LCs reached 1.38 lakh tonnes. Red lentil imports rose to 1.22 lakh tonnes, with LCs at 1.14 lakh tonnes. Date imports increased to 11,000 tonnes from 4,000 tonnes.

Higher import volumes and LC openings have improved the supply outlook, but do not necessarily guarantee lower retail prices. Import costs and the pace at which shipments reach the market also influence domestic prices.

The BTTC review found that international prices of edible oil and chickpeas remained somewhat elevated, while red lentil prices had declined. It called for close monitoring of global market trends, import costs and domestic supply conditions.

The commission also noted that chickpeas and lentils currently faced no import duties or taxes. Reviewing and rationally adjusting the existing tariff structure for sugar and fruit imports could help keep market prices at tolerable levels, it said.

Muktadir also announced that formal negotiations on a proposed free trade agreement (FTA) with Malaysia had begun.

The first round of talks started last Tuesday and would play a significant role in expanding trade and investment between the two countries, he said. The government aims to conclude negotiations and sign the agreement by December 2027.

Discussions on preferential trade arrangements are also underway with other key trading partners, including the United Arab Emirates, Indonesia, Oman, New Zealand and the European Union, the minister said.

Following Bangladesh’s graduation from the least developed country (LDC) category, retaining duty-free and preferential trade benefits in international markets will pose a major challenge, he noted.

Muktadir expressed hope that such agreements would help expand markets for readymade garments and other domestic export products, attract new investment and boost bilateral trade.

Bangladesh and Japan have signed six instruments and pledged two loan projects during Prime Minister Tarique Rahman's four-day visit to Japan, aimed at strengthening coastal security, improving the investment climate and expanding cooperation in skills, agriculture and climate change.

State Minister for Foreign Affairs Humaiun Kobir announced the agreements and loan commitments at a press briefing at the Bangladesh Embassy in Tokyo today (28 October), the third day of the prime minister's visit.

Prime Minister's Additional Press Secretary Atikur Rahman Rumon also spoke at the press briefing.

Humaiun Kobir said the instruments include four memorandums of cooperation (MoCs) and a grant agreement.

Beyond these government-level agreements, 17 memorandums of understanding (MoUs) have been signed between private-sector entities at the Japan External Trade Organization (JETRO), he said.

The grant agreement provides up to 2.12 billion yen ($13.44 million) for the provision of a patrol vessel to strengthen Bangladesh's coastal security capabilities.

The two countries also signed an MoC on economic relations and improving the business environment between Japan's Ministry of Economy, Trade and Industry and Bangladesh's Economic Relations Division under the Ministry of Finance.

Another MoC was signed between Japan's Ministry of Agriculture, Forestry and Fisheries and Bangladesh's Ministry of Agriculture.

A separate MoC was signed on the Employment for Skill Development Programme (ESDP).

The two sides also signed an MoC between Japan's Ministry of Agriculture, Forestry and Fisheries and Bangladesh's Ministry of Fisheries and Livestock to promote cooperation in the fisheries and livestock sectors.

The sixth instrument was a Letter of Intent on climate change cooperation between Japan's Ministry of the Environment and Bangladesh's Ministry of Environment, Forests and Climate Change.

Apart from the six instruments, Japan pledged two loan projects to support Bangladesh's development -- a 15.88 billion yen ($100.8 million) project to improve the investment environment and a 30.68 billion yen ($194.7 million) loan for the Upazila Governance and Development Project (Phase 2).

The implementation of the Economic Partnership Agreement (EPA) between Bangladesh and Japan is expected to increase Japanese investment in Bangladesh, Commerce Minister Khandakar Abdul Muktadir said today (27 October).

Describing Japan as one of Bangladesh's key partners in bilateral cooperation, the minister expressed hope that the prime minister's visit to Japan would open a new chapter in relations between the two countries.

He made the remarks while speaking to journalists after inaugurating an internal sports competition organised by the Electronic Media Journalists Association in Sylhet.

The minister also outlined several development plans aimed at making Sylhet a more liveable and modern city.

He announced plans for a suspension bridge beside Keane Bridge, saying a feasibility study was underway. The government would take steps to implement the project after receiving the study's findings.

Development work on the Badaghat Bypass and the Sylhet-Dhaka highway is also progressing, he said, expressing hope that the full picture of these projects would become visible by 2028.

Meanwhile, Sylhet City Corporation (SCC) is working to revive Jalalabad Park, he added.

Fire station construction to finish within 15 months

Earlier, the commerce minister directed officials to complete construction of the new Sylhet Sadar Fire Service and Civil Defence Station within the stipulated 15 months, citing the city's rapid urbanisation and growing population.

Speaking at the inauguration of the construction work, he said timely completion of the project was essential to ensuring the safety of a large population.

He said the work must be completed on time without compromising quality.

Increasing the infrastructure and operational capacity of the Fire Service and Civil Defence would help the agency respond more quickly to fires and other disasters, reducing losses of life and property, he added.

Recognising the contributions of fire service personnel, the minister said they performed their duties with dedication, hard work and sacrifice to protect the public, although their efforts were not always properly recognised.

He expressed his commitment to turning the Fire Service and Civil Defence into a world-class institution.

Titas Gas Transmission and Distribution PLC reported a net loss of Tk595 crore in FY26, with a loss per share of Tk6.02, narrowing from Tk772 crore in the previous fiscal year.

Despite the loss, the state-owned gas distribution company has recommended a 2% cash dividend for its shareholders, according to a disclosure published on the stock exchanges today (27 October).
With the latest loss, the company's cumulative losses have reached Tk2,275 crore since FY23.

Its net asset value (NAV) per share fell to Tk83.94 at the end of June 2026, down from Tk90.13 a year earlier.

Meanwhile, net operating cash flow per share (NOCFPS) fell into negative territory at negative Tk2.70 for FY26, sharply declining from Tk18.17 in FY25. Negative NOCFPS means the company is currently suffering from an operating cash crisis.

To approve the latest annual accounts and the recommended dividend, the company has scheduled its Annual General Meeting (AGM) for 24 December.

Also, 17 November has been set as the record date for determining shareholders eligible for the recommended dividend and participation in the AGM.

The paid-up capital of Titas Gas Tk989.22 crore dividend by 98.92 crore shares. Out of its total shares, the government held 75%, out of 25% stake -- institutional investors 15.19%, foreign investors 0.03% and the general public held 9.78% as of September 2026.

Titas Gas shares price today closed at Tk16.50 each at the Dhaka Stock Exchange.

Shares of Mir Akhter Hossain Limited, one of the country's leading construction firms, plummeted by 12.41% today (27 October) after the company declared no dividend for the first time since its stock market listing.

Following the corporate disclosure filed with the Dhaka Stock Exchange (DSE), the company's stock price dropped to close at Tk25.40, making it the top loser on the premier bourse during the session.

There was no standard price limit on the trading of its shares today following the corporate recommendation.

The decision to skip dividends for the financial year ended 30 June 2026 comes as a stark contrast to FY25, when the company disbursed a 10.50% cash dividend to its shareholders.

According to its price-sensitive statement, the company has scheduled its annual general meeting (AGM) for 23 December to approve the no-dividend recommendation and audited financial statements. The record date has been set for 19 November.

The dividend skip follows a sharp financial downturn in the final quarter of the fiscal year.

Financial reports show the construction major maintained a net profit of Tk8 crore through the first nine months up to March 2026. However, a massive loss of Tk87 crore incurred during the final quarter (April-June) dragged its total annual loss to Tk79 crore.

Consequently, the company reported consolidated earnings per share (EPS) of negative Tk6.58 for FY26, compared with positive EPS of Tk1.72 in the previous financial year.

Its consolidated net asset value (NAV) per share fell to Tk44.21 from Tk51.51 in FY25, while consolidated net operating cash flow per share (NOCFPS) dropped to Tk2.58 from Tk6.68.

Listed on the bourses in 2021 and currently trading in the "A" category, Mir Akhter Hossain had raised Tk125 crore through an initial public offering (IPO) under the book-building method in late 2020 to expand its business, acquire heavy construction equipment, and service existing bank liabilities.

Japan has announced plans to scale up private investment in Bangladesh to nearly 1 trillion yen ($6.34 billion) over the next five years following a high-level summit in Tokyo between Bangladeshi Prime Minister Tarique Rahman and Japanese Prime Minister Takaichi Sanae.

The new investments are expected to generate 200,000 jobs in Bangladesh, according to a joint statement released after official bilateral talks today (27 October).

During the summit, both leaders witnessed the signing of the Japan-Bangladesh Economic Partnership Agreement (EPA), designed to accelerate trade, drive industrial diversification, and support Bangladesh's transition as it graduates from Least Developed Country (LDC) status.

Distinguished fellow, CPD" layout="left"]Japanese investors' interest in Bangladesh is highly encouraging, given Japan's advanced technologies and expertise in industries, energy and automobile manufacturing.

The two countries also agreed to upgrade their landmark flagship infrastructure strategy, the Bay of Bengal Industrial Growth Belt, to "BIG-B for Shared Prosperity". The enhanced initiative aims to integrate energy, deep-sea port, industrial, and ICT infrastructure, transforming the Matarbari-Maheshkhali area into a premier regional logistics and manufacturing hub centred around the Matarbari Deep Sea Port.

Economists, businesses hail planned investments

Speaking to The Business Standard, domestic economists and trade leaders widely praised the developments, noting that the commitments will strengthen macroeconomic stability, boost employment, and foster high-tech knowledge transfer.

Dr Fahmida Khatun, Distinguished Fellow at the Centre for Policy Dialogue (CPD), said Japanese investment is highly encouraging given Tokyo's global leadership in heavy manufacturing, automobiles, and clean energy. She added that Japanese participation could help raise local compliance, labour, and environmental standards, provided Bangladesh maintains policy consistency, administrative efficiency, and reliable power supplies.

M Masrur Reaz, Chairman of Policy Exchange Bangladesh, highlighted that the financial inflows come at a critical time for the national economy. He noted that the commitments will support Bangladesh's balance of payments and expand regional connectivity, urging the government to establish time-bound execution frameworks.

Md Fazlul Hoque, administrator of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), noted that Japan remains a trusted partner whose investments carry no hidden political agendas, creating constructive avenues for private-sector partnerships.

Key infrastructure and energy deals

Beyond trade agreements, the two leaders agreed to advance preparations for the early operationalisation of Terminal 3 at Dhaka's Hazrat Shahjalal International Airport and accelerate the construction of additional Mass Rapid Transit (MRT) lines in the capital.

Addressing energy security, Prime Minister Tarique expressed appreciation for a 50 billion yen emergency support loan provided under Japan's Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia). Prime Minister Takaichi reaffirmed Tokyo's commitment to bridging Bangladesh's energy demand gap and expanding renewable energy collaborations through a newly signed Letter of Intent on climate change.

To streamline investment procedures, Prime Minister Tarique pledged to improve Bangladesh's business environment by boosting transparency, enhancing regulatory predictability, and simplifying customs, taxation, licensing, and dividend remittance processes.

The two sides signed a Memorandum of Cooperation (MoC) between Japan's Ministry of Economy, Trade and Industry and Bangladesh's Economic Relations Division to further improve ease of doing business. Prime Minister Takaichi also welcomed discussions on Bangladesh's prospective accession to the Regional Comprehensive Economic Partnership (RCEP).

Regional security and bilateral initiatives

The leaders discussed the escalating humanitarian crisis in Myanmar, expressing joint concern over regional instability and transnational crime. Both prime ministers agreed that the ultimate resolution to the Rohingya crisis lies in a voluntary, safe, dignified, and sustainable repatriation to Myanmar.

Prime Minister Takaichi congratulated Tarique Rahman on assuming office following Bangladesh's successful, credible, and peaceful general election in February 2026, which was attended by official Japanese election observers.

To maintain momentum, Prime Minister Tarique proposed establishing a ministerial-level joint commission to accelerate project execution. During his four-day official visit, the Prime Minister also visited Jera's LNG terminal and power plant in Futtsu, alongside Nittsu's logistics hub in Ichikawa.

They also welcomed two memorandums of cooperation to strengthen and expand mutual cooperation to enhance business and attract investment in the areas of food, agriculture, fisheries, and livestock, as well as a proposed yen-loan project to improve the investment environment.

Dhaka, Tokyo to upgrade BIG-B into 'Shared Prosperity' initiative
The two leaders reiterated the importance of upholding a free, fair and rules-based international economic order.

In this context, they welcomed the signing of the EPA and reaffirmed their commitment to the early entry into force of the agreement with the aim of bringing its mutual benefits to the peoples of both countries.

Takaichi stated that Japan looks forward to the furtherance of discussions on Bangladesh's request for accession to the Regional Comprehensive Economic Partnership Agreement.

Cooperation in education, public health

The leaders further agreed to strengthen cooperation in education, public health, disaster management, local governance and human resource development.

Takaichi highly appreciated vibrant democracy in Bangladesh and welcomed the successful general election in February 2026, held in a credible and peaceful manner as witnessed by an election observer mission dispatched by the Japanese government. She congratulated Tarique on assuming office.

Tarique thanked the Japanese government and people for their warm welcome and gracious hospitality and invited Takaichi to visit Bangladesh at a mutually convenient time.

Proposal for joint commission

Tarique said the summit will open a new chapter in Bangladesh-Japan relations, built on deeper trust, broader economic cooperation, stronger investment ties and a shared commitment to peace, stability and prosperity.

He proposed establishing a ministerial-level joint commission to identify priority areas, accelerate implementation and turn cooperation opportunities into practical initiatives.

Official luncheon

Tarique and Takaichi attended an official luncheon at the Japanese Prime Minister's Office in Tokyo yesterday, held in honour of the Bangladesh prime minister. The luncheon followed the two leaders' talks and the joint press announcement.

Tarique's wife Zubaida Rahman was also present at the luncheon.

Takaichi praises PM Tarique Rahman's commitment to democratic values
The bilateral talks began at 11:45am local time. The meeting began with a formal welcome at 11:30am, a guard of honour, and the introduction of the two leaders' delegations.

Tarique, who arrived in Tokyo on Monday on a four-day official visit at the invitation of the Japanese Prime Minister Takaichi Sanae on 26 October, will conclude his visit on 28 October and return to Dhaka on the 29th.

Bangladesh’s inward remittance momentum maintained a robust trajectory, with expatriate workers remitting $2.45 billion in the first 26 days of October, pushing the cumulative remittance for the July–October 26 period of the current fiscal year to $11.04 billion.Buy Maps

According to data released by Bangladesh Bank, the country received $2,452 million between October 1 and October 26, 2026, registering a 13.2 percent monthly growth compared to $2,166 million recorded during the corresponding period in October 2025. On October 26 alone, incoming remittances stood at $122 million.

Cumulatively, remittances sent between July 1 and October 26, 2026, reached $11,044 million ($11.04 billion), posting a 13.3 percent yearly growth compared to $9,752 million during the corresponding period of the previous fiscal year.

Meanwhile, the country’s foreign exchange reserves stood at $36,411.83 million (gross) as of October 26, 2026. According to the central bank, the reserve calculated under the International Monetary Fund’s (IMF) BPM6 manual stood at $31,600.40 million on the same date.

The world will add less clean energy capacity in 2026 for the first time in five years due to inadequate ​transmission networks and trade barriers, the chief of the International ‌Renewable Energy Agency (IRENA) said.

Growth in solar and wind capacity has been accelerating every year since 2021, when the coronavirus pandemic disrupted global supply chains. Clean power installations including ​hydropower surged a record 692 gigawatts, or 15.5 percent, to 5,149 GW ​in 2025 — representing half the world’s power capacity.

Clean power installations including ​hydropower surged a record 692 gigawatts, or 15.5 percent, to 5,149 GW ​in 2025 — representing half the world’s power capacity.

Governments have pledged to boost clean energy use to ensure reliable power supply and cut ​costs, particularly after the US-Israeli war with Iran choked energy supplies and inflated ​prices. But IRENA Director-General Francesco La Camera noted that there has been a slowdown in renewables deployment in China due to curtailment — or rejection of clean power when a ​grid hits its limits.

“The main cause of a lack of new record ​in additions this year is the mismatch between generation capacity and the capacity to ‌distribute and transmit electricity,” he told Reuters on the sidelines of the Singapore International Energy Week conference.

China, the world’s biggest renewable energy producer, turned away enough clean energy to power Mexico for a year in the first half of ​2026, while networks ​in nations such as Australia and Japan also failed to keep pace with a surging renewables buildout.

“The amount of the (capacity) increase in ​the other parts of the world this year, I ​don’t think it will offset the slowing down in China,” La Camera said. He declined to provide a numerical forecast for expected growth in clean energy additions this year.

Renewable ​energy additions are crucial to reducing global ​emissions, and the United Nations said in a report last week that “urgent and stringent” emission cuts ​were required to slow global warming.

India’s ​diesel exports are set to surge from 2027, giving the South Asian nation a bigger role ‌in global markets, as state-run companies boost refining capacity, industry officials said on Tuesday.

That will bolster India’s position as a swing supplier of refined products in an already tight global market buffeted by the US-Iran and Ukraine-Russia wars that have disrupted trade flows and boosted ​freight rates worldwide.

“We will be in a happy situation of not only refining for ourselves but for the ​world,” said Oil Minister Hardeep Singh Puri.

India is becoming a global refining hub as it prepares to boost refining capacity to 300 million tons per year by 2030, and increasing further to 400 ​million tpy later.

Amid unprecedented disruption to global refining from conflict and plant closures, with operating refineries running at historic utilisation rates ​to ease fuel shortages, India has emerged as the second-largest exporter of seaborne diesel this year, behind only the US, ship-tracking data from Kpler shows.

In 2027, Indian state refiners will together increase their diesel production capacity by 16.5 million tons as they boost capacity ​of existing refineries, officials said.

“We will be exporting diesel due to refinery expansion,” said A S Sahney, chairman of ​Indian Oil Corp, the country’s largest refiner, which aims to add about 18 million tons of annual capacity, to produce about 8 ‌million tpy of additional diesel.

Hindustan Petroleum Corp’s new 9-million-tpy refinery in the western state of Rajasthan will turn out 3 million tpy of diesel next year, once the refinery stabilises, said Chairman Vikas Kaushal.

Bharat Petroleum Corp plans to produce 1.5 million tpy extra diesel from next year, its chairman, Sanjay Khanna, said.

Oil India’s subsidiary Numaligarh refinery in the eastern region, which will ​be expanded to 9 million ​tpy in March next year, will add 3 million tpy of diesel production.

Some refiners, such as HPCL, buy refined products from private companies for sale by their retail outlets. The expansion will limit ​their purchases from other companies for local sales, and free up volumes for exports, ​officials said.

Additionally, India’s expanding refining capacity is designed to process a broad range of crude grades and flexible petrochemical feedstocks, letting companies capitalise on price arbitrage and produce higher-value products.

Private refiners Reliance and Nayara now export refined fuels while state companies mainly meet domestic demand.

US Secretary ​of State Marco Rubio described India as a refining “superpower” during a ​recent visit to Reliance’s massive refining complex in the port city of Jamnagar.

Puri said India aimed to become a global refining hub with fuel ​demand expected to rise to drive its economic expansion.