Bangladesh Bank has consolidated existing rules on licensing foreign exchange dealers, money changers and gold traders into a single circular to make regulatory requirements easier to access and follow.

The circular, issued yesterday, brings together existing instructions on issuing and renewing licences for authorised dealers (ADs), money changers, limited money changers, authorised gold dealers (AGDs) and authorised importers of gold ore and dore.

The circular aims to streamline licensing and operational procedures by consolidating previous instructions, with necessary modifications and updates, into a single document.

It covers licensing and renewal procedures, foreign currency transactions, gold imports and exports, anti-money laundering and combating the financing of terrorism (AML/CFT) compliance, reporting requirements, and the central bank’s inspection and licence cancellation powers.

It also sets out eligibility criteria and application procedures for authorised importers of gold ore and dore.

Under the circular, authorised dealers may process applications for money changer and authorised gold dealer licences on behalf of customers and forward them to the central bank. The issuance of licences, however, remains subject to BB’s decision.

The circular will remain in force for one year. Previous instructions on matters covered by the new circular will stand repealed to the relevant extent, while subsequent instructions, amendments and clarifications issued by Bangladesh Bank will prevail.

Bangladesh’s garment exports to Poland are rising as the Russia-Ukraine war disrupts direct trade with Russia and buyers shift sourcing from China, even as shipments to several major markets face pressure.

Garment exports to Poland grew 9.8 percent year-on-year to $1.86 billion in fiscal year 2025-26 (FY26), according to Export Promotion Bureau (EPB) data.

In contrast, Bangladesh’s total garment exports fell 1.64 percent during the fiscal year.

The slowdown has continued in major destinations. Bangladesh’s garment exports to the US fell 5.3 percent in the first half of 2026, while shipments to the European Union declined 11.67 percent in the first eight months, according to World Bank and Eurostat data.

Industry leaders attribute the growth in exports to Poland partly to Polish buyers re-exporting garments to neighbouring Russia, where sanctions-related payment difficulties have complicated direct trade.

They also cite demand for basic garment items and opportunities created by Chinese suppliers losing orders.

A GROWING MARKET

Bangladesh exported garment items worth $1.38 billion to Poland in FY21, with the amount rising to $2 billion in FY22, according to EPB data.

Exports fell to $1.40 billion in FY23 before recovering to $1.54 billion in FY24 and $1.69 billion in FY25.

In contrast, garment exports to Russia have declined since the war began in February 2022.

Before the war, Bangladesh exported more than $665 million worth of garment items to Russia in FY21, with industry players considering it as a rising market for Bangladeshi apparels.

Exports to the country have since continued to fall, standing at $257.26 million in FY26.

POLAND AS A ROUTE TO RUSSIA

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said a significant volume of garment items was being re-exported from Poland to Russia.

Before the Russia-Ukraine war, Turkish traders also imported Bangladeshi garments for re-export to Russia, he said. Exports to Turkey declined after the country imposed a 17 percent duty on Bangladeshi garment items in 2011, according to him.

After the war began, Polish importers started re-exporting garments to Russia, contributing to the growth in Bangladesh’s exports to Poland, said Mahmud.

Salah Uddin Ahmed, managing director of IFS Texwear (Pvt) Ltd, which exports nearly $2 million worth of knitwear a month, also said some Polish buyers sourcing garments from Bangladesh also re-export products to Russia.

He, however, said he did not have specific evidence confirming that the garments being re-exported to Russia were sourced from Bangladesh.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Poland could serve as a third country for exporting garments to Russia.

Western sanctions imposed after Russia’s invasion of Ukraine restricted several Russian banks’ access to the SWIFT international financial messaging system. The restrictions complicated some cross-border payment arrangements, making it harder for Bangladeshi exporters to receive payments from Russian buyers.

The war has also disrupted payments involving buyers linked to Russia. 28 Bangladeshi garment exporters have been struggling to recover $5.2 million from a Polish buyer for nearly two years, said Mijanur Rahman, managing director of Fabrica Knit Composite Ltd and a vice-president of the BGMEA.

Mijanur, who has been coordinating efforts to resolve the payment issue, said the buyer’s business had been disrupted by the war.

CHINA’S LOST ORDERS, BASICWEAR DEMAND

Exporters say the rise in shipments to Poland is not solely linked to the Russia-Ukraine war.

According to Mijanur, the loss of work orders by Chinese suppliers was one of the reasons behind the increase in Bangladesh’s garment exports to Poland.

Demand for basic garment items in the market was also strong, he added.

IFS Texwear’s Salah Uddin, meanwhile, noted that Poland was a growing market for Bangladeshi exporters because they enjoy zero-duty access under the European Union’s trade arrangements.

The duty advantage, combined with demand for basic garments and possible shifts in sourcing from China, has supported Bangladesh’s exports to Poland, exporters said.

Labour and Employment Secretary Md. Abdur Rahman Tarafder today (17 October) said that a wage board will be formed soon to determine new wages for the workers in the garment sector.

He said that the process of nominating representatives from both the workers and the employers for the wage board is underway.

Expressing the hope that a gazette notification could be published within this month, he said once the nominations are received from the respective parties, the Ministry will issue the gazette, following which the board will commence its operations.

The labour secretary made these remarks while talking to the state-run news agency, BSS.

He explained that the wage board will consist of a chairman, an independent member, a representative for the workers and a representative for the employers. Additionally, representatives specifically from the relevant industrial sector one from the workers and one from the employers will be included. In the case of the ready-made garment (RMG) industry, representatives from this specific sector will serve in the board.

The labour secretary noted that in determining wages for RMG workers, factors such as Bangladesh's overall economic situation, wage rates in neighboring countries and the ground-level realities within various factories will be taken into account.

The board will review these aspects before reaching a decision on wage levels; in other words, the Ministry will not unilaterally set the wage amount through administrative action, he added.

Abdur Rahman Tarafder further mentioned that the Department of Labour has already been instructed to initiate the formation of the wage board. The department has, in turn, requested both the workers' and employers' sides to nominate their respective representatives. Upon receiving these nominations, the Ministry will issue the official gazette.

Regarding the ongoing labour unrest, he said that the government maintains a positive stance toward the workers' demands and is engaged in regular dialogue with them. Labour leaders have also been kept informed about these developments.

The secretary added that the government has undertaken various initiatives to safeguard the workers' rights. Tripartite discussions involving representatives from the workers, employers and the government are going on now concerning the Labour Rules, with several meetings already held on the matter.

The labour secretary informed that a meeting of the National Tripartite Consultative Council (TCC) will be held on 27 October, chaired by the minister of Labour and Employment. The meeting will feature detailed discussions on the current labour situation including the formation of a wage board and the drafting of labour rules with participation from representatives of workers, employers and the relevant ministries.

He said, alongside addressing the demands of the workers, the government remains vigilant to ensure that no external vested interest groups can incite unrest in connection with the ongoing protests.

Dhaka is preparing to seek $100 million in fresh sovereign equity from Saudi Arabia to recapitalise the Saudi-Bangladesh Industrial and Agricultural Investment Company Limited (SABINCO), matching its own proposed contribution, according to official documents.

In this regard, Foreign Secretary Asad Alam Siam, in a letter dated October 5, proposed the finance minister write to his Saudi counterpart, enclosing the draft letter and a strategic paper ahead of the prime minister's possible visit to Riyadh.

The foreign ministry said with regard to the prime minister's possible visit, taking up the initiative quickly could create an opportunity for positive consideration by the Saudi authorities.

According to the letter, the proposed investment areas are aligned with the Saudi Vision 2030.

The draft is accompanied by a strategic paper titled "Capital Expansion, Bilateral Equity Recapitalisation and Joint Sovereign Guarantee Framework (2026-2030)" and prepared in consultation with SABINCO.

It had been provided to the finance minister to take the next course of action, including necessary approval in this regard, a senior official of the Finance Division said last week.

According to the letter, dated October 1 and drafted by the foreign ministry, from Finance Minister Amir Khosru Mahmud Chowdhury to his Saudi counterpart Mohammed bin Abdullah Al-Jadaan, the government has decided to inject $100 million in fresh sovereign equity into the company.

The minister invited Saudi Arabia to make an equal contribution, which would raise the total recapitalisation package to $200 million.

Established in 1984 as a 50:50 sovereign joint venture between Bangladesh and Saudi Arabia, SABINCO has maintained a sound record of commercial operations and development financing over four decades, the letter said.

The proposed capital injection is expected to enhance SABINCO's capacity to finance investments in renewable energy, agro-processing and cold-chain infrastructure, pharmaceuticals and active pharmaceutical ingredients (APIs), healthcare, advanced manufacturing, and other productive sectors, officials at SABINCO believe.

The recapitalisation would also help the company mobilise additional concessional financing from multilateral and Arab development institutions, thereby leveraging the proposed contributions of the two governments, according to the document.

The draft letter outlines several strategic benefits for Saudi Arabia from the proposed investment.

Agro-processing and cold-chain projects in Bangladesh could help ensure reliable food supplies to the Saudi market and support the kingdom's food security objectives, it says.

Expanded pharmaceutical and API production could also create supply opportunities for Saudi drug companies, while SABINCO could act as a local financing and co-investment partner for Saudi firms seeking to expand their presence in Bangladesh and the wider South Asian market, the letter says.

The foreign ministry said in view of the possible visit by the prime minister to Saudi Arabia, an early move on the proposal could create an opportunity for favourable consideration by the Saudi authorities.

The ministry would arrange to send the letter to the Saudi finance minister once the Bangladesh finance minister approves and signs it, according to the correspondence. On October 7, the foreign ministry sent the documents to Finance Division Secretary Dr Md Khairuzzaman Mozumder to take necessary steps.

Bangladesh is going to observe the International Day for Eradication of Poverty today (Saturday) with a worsening poverty situation, as prolonged economic slowdown, persistent inflation and shrinking employment opportunities push more people below the poverty line.

The World Bank (WB) estimates that the country's national poverty rate rose to 22.5 per cent in fiscal year (FY) 2025-26, up from 18.7 per cent in 2022, reversing part of the progress Bangladesh made in reducing poverty over the past decade.

According to the WB's October 2026 Bangladesh Development Update report, around 2.1 million additional people fell below the international poverty line during last FY2026.

The report also warns that nearly 62 million Bangladeshis remain vulnerable to falling into poverty following an economic or personal shock.

The findings came ahead of October 17 (today) observed globally as the International Day for the Eradication of Poverty, highlighting the growing challenge facing policymakers as the country struggles to restore economic growth, protect household purchasing power and generate adequate employment.

The United Nations designated the day in 1992, though the date traces back to 1987, when over 100,000 people gathered in Paris at the Trocadéro to honour victims of extreme poverty. The latest estimates indicate that Bangladesh's poverty has increased for a fourth consecutive year, reflecting the combined effects of elevated living costs, weak labour demand and sluggish economic activity.Economic analysis reports

The WB's estimate of 22.5 per cent is based on its modelling and should not be confused with a new official household poverty survey.

The Bangladesh Bureau of Statistics (BBS), in its Household Income and Expenditure Survey (HIES) 2022, put the national poverty rate at 18.7 per cent and extreme poverty rate at 5.6 per cent.

The BBS survey had recorded a significant decline in poverty from 24.3 per cent in 2016 and 31.5 per cent in 2010, demonstrating the progress made before the recent economic difficulties.

However, the World Bank's latest assessment suggests that the gains have come under increasing pressure.

According to the WB, persistent inflation has emerged as a major threat to poverty reduction, particularly for low-income households that spend a large share of their earnings on food, housing, transport and other essential items.

Although average inflation eased to 8.7 per cent in FY2026 from around 10 per cent in FY2025, prices remained high, continuing to erode the purchasing power of households whose incomes have failed to keep pace, the Bank said.

Employment fell by nearly two million between 2023 and 2024, while a further decline of around 0.8 million was expected in 2025, according to the bank's labour-market assessment, the WB said.

Industrial activity has also suffered from shortages of gas and electricity, forcing some businesses to cut production, reduces working hours or lay off workers. The resulting loss of earnings has left many households more exposed to rising living costs.

Bangladesh's economic growth slowed to 3.4 per cent in FY2026, according to the World Bank's October update, down from 3.5 per cent in FY2025 and 4.2 per cent in FY2024.

The slowdown has weakened the economy's capacity to generate the jobs and income growth needed to reduce poverty.

Bangladesh has made substantial progress in reducing poverty between 2010 and 2022. The World Bank's 2025 Poverty and Equity Assessment said the national poverty rate fell from 37.1 per cent in 2010 to 18.7 per cent in 2022, lifting approximately 34 million people out of poverty.

Extreme poverty declined from 12.2 per cent to 5.6 per cent over the same period.

But the assessment also found that the pace of poverty reduction slowed after 2016 and economic growth became less inclusive, with income gains increasingly favouring better-off households.

The bank estimated that around 62 million people-roughly one-third of the population-were vulnerable to falling back into poverty because of illness, natural disasters, job losses or other unexpected shocks.

The latest deterioration reinforces concerns that progress in poverty reduction remains vulnerable when growth fails to translate into secure employment and sustained improvements in real incomes.

Expressing concern over the effectiveness of government social protection programmes, the WB said Bangladesh operates numerous social assistance schemes, subsidies and cash-transfer programmes, but weaknesses in targeting mean that support does not always reach the households most in need.Economic analysis reports

The bank's latest assessment says the country's social protection system remains fragmented, with overlapping programmes and inadequate benefits limiting its ability to protect vulnerable people.

Evidence from 2022 showed that half of the poorest households did not receive any social assistance benefits, while 35 per cent of the richest households received such support.

The World Bank has urged the government to improve the targeting of cash transfers, consolidate fragmented programmes and strengthen assistance for poor and vulnerable households.

The World Bank has identified productive employment as central to restoring Bangladesh's poverty-reduction momentum.

Its poverty assessment calls for more and better-paid jobs, particularly for young people, women and vulnerable workers, alongside stronger agricultural value chains, improved connectivity and a more supportive business environment.

The challenge is significant for a country where millions of young people enter the labour market and where industrial expansion, private investment and employment generation have weakened.

Economists and development experts have long argued that sustained poverty reduction requires more than economic growth alone.

Changes to customs measures introduced in the FY2026-27 budget are expected to generate an additional Tk 35 billion in import-tax revenue to contribute to an ambitious target.

The gain is estimated despite estimated revenue losses from duty-and tax concessions.

According to a recent estimate by the National Board of Revenue (NBR), the budgetary changes are projected to generate the gross revenue gains from increases in customs duty, regulatory duty (RD), supplementary duty (SD) and value-added tax (VAT).

Among the revenue-enhancing measures, increases in regulatory duty are projected to contribute the largest share -- Tk 13.08 billion. Supplementary duty increases are expected to generate Tk 6.94 billion, followed by customs duty at Tk 3.07 billion and VAT at Tk 1.11 billion.

However, adjustments to minimum values for imported goods are estimated to reduce revenue by Tk 17.75 billion, an internal document, according to a document prepared by a customs taskforce and recently submitted to finance and planning adviser Rashed Al Titumir.

The estimates indicate a net revenue gain from the combined effects of the budget revisions, despite concerns over extensive tax exemptions.

The data show the customs wing of the NBR would lose a total of Tk 24.22 billion in revenue, including adjustments in MV, due to offering tax waivers in the budget.

The NBR has prepared the estimates to present the revenue -mobilisation outlook at the ongoing discussions with the International Monetary Fund (IMF) in Bangkok, Thailand, officials said.

A senior NBR official said that despite repeated recommendations for reducing dependence on import taxes, the government has set an ambitious revenue target for the customs wing for the current fiscal year, to contribute to the national budget of over Tk 9.0 trillion.

For FY2026-27, the government has set a customs revenue target of Tk 1.57 trillion, up from Tk 1.12 trillion in FY2025-26, representing an increase of around 40 per cent.

Customs revenue grew by nearly 12 per cent in the previous fiscal year.

Trade economist Dr Masrur Reaz says Bangladesh's economic growth is expected to slow to dip below 3.5 per cent, according to projections by the IMF, and such slower growth will likely dampen import demand, making the government's ambitious revenue targets, particularly the projected 40-percent growth in customs duty collection, unrealistic.

"Although higher prices of imported fuels and gas may generate more ad valorem taxes, declining import volumes could offset the gains. Moreover, some state-owned entities record tax liabilities in their accounts but do not actually pay the taxes, creating a gap between assessed revenue and actual collection," says Mr Reaz, founder-chairman of Policy Exchange Bangladesh.Buy Maps

Bangladesh's heavy reliance on customs duties for revenue growth is also inconsistent with international best practices and the country's preparations for graduation from the least -developed-country (LDC) category, he points out.

"The government should gradually reduce its dependence on tariffs ahead of graduation rather than maintain high tariff barriers or remove them abruptly, which could create economic disruptions," he suggests.

The customs wing estimates that revenue collection would reach Tk 1.23 trillion through natural growth, leaving a substantial gap to be bridged through policy changes and other revenue-enhancing measures.

The customs wing has also projected the recovery of Tk 200 billion in revenue arrears stuck with government agencies and private organisations.

Of this, the NBR expects to collect Tk 50 billion by resolving cases involving bond licence-holders.

Another Tk 35 billion is projected to come from intelligence operations, crackdowns and preventive measures against the misuse of bonded-warehouse facilities.

The customs wing expects to generate a further Tk 17 billion through post-clearance audits, auctions of pending goods, customs valuation and assessment measures.Economic analysis reports

The senior official, however, described the projected additional revenue as insignificant compared with the ambitious target set for the current fiscal year.

The increases in import taxes cover 171 products, identified by their Harmonised System (HS) codes, across the four tax categories. These include 61 codes for regulatory duty, 33 for supplementary duty, 53 for customs duty

and 24 for VAT.

In contrast, adjustments to minimum values for 210 goods are estimated to reduce revenue by Tk 17.75 billion, offsetting a substantial portion of the gains expected from higher duties and VAT.

"Taxing imports is effectively taxing exports, as it creates an anti-export bias. Consumers in the domestic market are also bearing the brunt of higher prices. This conspiracy against trade must end," said Dr Zaidi Sattar, chairman of the Policy Research Institute of Bangladesh (PRI).

Bangladesh's foreign exchange reserves stood at US$36.39 billion, according to the latest data released by Bangladesh Bank (BB) on Saturday.

Reserves calculated under the IMF's BPM6 methodology stood at US$31.58 billion.

The government plans to introduce a single online portal for issuing trade licences and a coordinated inspection system to reduce administrative delays, costs and harassment for businesses, Commerce Minister Khandakar Abdul Muktadir has said.

The government is also considering extending trade licence validity and replacing the existing licence with a "business registration certificate" or a similar document to simplify procedures and improve service delivery, he informed.

Speaking at the first meeting of the National Task Force on "Deregulation and Business Facilitation" at the Finance Division conference room in the Secretariat today (17 October), the minister stressed the need to remove unnecessary barriers to business operations and create a more investment-friendly environment.

The meeting, chaired by Finance and Planning Minister Amir Khosru Mahmud Chowdhury, reviewed progress on initiatives to reduce business costs, remove unnecessary regulations, simplify administrative procedures and improve conditions for domestic and foreign investment.

Currently, trade licences are issued separately by union parishads, municipalities and city corporations. Under the proposed system, businesses would be able to submit applications and required documents, pay fees and obtain licences online through a single portal, without visiting the relevant offices.

The task force also discussed simplifying the renewal of work permits and security clearances for foreign employees.

Muktadir said foreign nationals working in Bangladesh are generally employed by legitimate, registered businesses that pay taxes and whose managing directors or directors are legal citizens of the country.

He said it was unacceptable for such companies to face unnecessary complications in renewing security clearances despite submitting applications and required certifications.

The minister called for discussions and coordination with the Home Ministry to make the renewal process more transparent, efficient and straightforward.

Joint inspections planned

The government is also planning to introduce a coordinated inspection system under the leadership of the Invest Bangladesh Authority to reduce repeated inspections by different agencies.

Under the proposed arrangement, inspections covering building safety, fire safety and environmental compliance would be conducted jointly on a pre-scheduled date, with representatives of the relevant agencies and the Invest Bangladesh Authority participating.

The initiative is expected to reduce the need for multiple visits to the same establishment, saving businesses time and money while reducing administrative hassles.

The meeting identified five priority sectors for reviewing and simplifying business-related approvals, permits and licences, where delays and overlapping responsibilities among agencies have created obstacles. The initiative will gradually be expanded to other sectors.

Muktadir stressed the need to eliminate unnecessary restrictions, lengthy approval procedures and poor coordination among government agencies.

He urged the relevant authorities to work together to ensure transparent, accountable and efficient public services for investors.

Focus on regulatory reform

The meeting was attended by task force members, including Environment, Forest and Climate Change Minister Abdul Awal Mintoo, Law Minister Asaduzzaman and Invest Bangladesh Chairman Ashik Chowdhury.

Senior officials from the National Board of Revenue, Bangladesh Securities and Exchange Commission, Finance Division, Ministry of Shipping and the Registrar of Joint Stock Companies and Firms also attended. Federation of Bangladesh Chambers of Commerce and Industry President and other senior officials were present.

The task force emphasised administrative reforms, expanded digital services and stronger coordination among government agencies to make business and investment services faster and more accessible.

The government expects the proposed measures to reduce the time and cost of doing business and strengthen Bangladesh's investment climate.

Businesses have identified at least 107 obstacles to improving the ease of doing business in Bangladesh, with customs and VAT-related issues accounting for the largest share at 37.

The issues span several government agencies, including the Finance Ministry, Commerce Ministry, customs and tax authorities, Environment Ministry, Bangladesh Bank and Home Ministry.

Business leaders raised the concerns at the first meeting of a committee on ease of doing business yesterday, attended by Finance and Planning Minister Amir Khosru Mahmud Chowdhury, Commerce Minister Khandakar Abdul Muktadir and other ministers.

Sources said a 22-member committee, comprising representatives from the government and private sector, has been formed following the directives from the prime minister to identify barriers to business and coordinate efforts to remove them.

Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association, told TBS that 107 issues had been identified, including 37 related to customs and VAT, with some already under consideration for resolution.

Babu said the first meeting had raised expectations among businesses that long-standing problems would be addressed.

Progress will be reviewed at the next meeting, he added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said businesses faced major difficulties involving customs, bonded warehouses, VAT and income tax.

These include alleged arbitrary decisions by customs officials over harmonised system codes and product valuation, delays and harassment during product inspections, seeking illicit financial facilities during audits of bonded-warehouse licence holders, and complications in approving raw material entitlement, the business leader, who was not present at the meeting, told this newspaper over a mobile phone.

He said the problems had been discussed for years but had seen little meaningful resolution.

Hatem said the committee's formation under the prime minister's directive could strengthen accountability and help ensure effective action to remove long-standing barriers to business.

Rupali Haque Chowdhury, president of the Foreign Investors' Chamber of Commerce and Industry, said delays in issuing work permits and processing visas remained major concerns, particularly involving the Home Ministry.

Slow automation at the National Board of Revenue, delayed tax refunds and harassment of compliant companies through audits were also raised at the meeting, the business leaders said.

They also highlighted difficulties and delays in obtaining visas and work permits for foreign nationals.

Businesses welcome quick measures

Meeting sources said the government had directed relevant agencies to address some issues promptly. Officials are expected to present a detailed progress report at the next meeting, planned within a month.

Rupali Chowdhury said one immediate measure would allow industrial facilities to begin operations after receiving the necessary approval, without waiting for separate fire safety and environmental clearances.

Under the proposed arrangement, the relevant departments would conduct inspections in coordination and submit their reports within a specified timeframe, she said.

She said the move could reduce delays and make business operations easier.

Rupali Chowdhury added that applications could be deemed approved if the relevant authorities failed to make decisions within the stipulated timeframe.

Hatem said the committee's formation under the prime minister's directive could strengthen accountability and help ensure effective action to remove long-standing barriers to business.

Bangladesh and Oman on Saturday explored partnerships in trade, investment and skilled migration to broaden bilateral relations beyond their traditional focus on the labour market.

The issues were discussed when State Minister for Foreign Affairs Humaiun Kobir met Omani Under Secretary of Foreign Affairs Sheikh Khalifa bin Ali Al Harthy in Baghdad, a foreign ministry press release said.

The meeting took place on the sidelines of the Organisation of Islamic Cooperation (OIC) Council of Foreign Ministers.

The discussions focused on expanding cooperation in trade and investment, promoting skilled migration and exploring the possibility of establishing an institutional framework for bilateral trade.

The meeting also stressed the importance of increasing business-to-business and people-to-people contacts to make bilateral relations more substantive.

The Bangladesh Export Processing Zones Authority (Bepza) attracts around $3 million in investment per acre of land and generates an annual return of Tk13.82 crore through the efficient use of limited land, the authority said at an investor meeting in Chattogram today (17 October).

Despite challenging conditions, Bepza signed investment agreements with 36 companies in FY26, while exports from its zones reached $8.41 billion, up 2.22% from the previous fiscal year.

The figures were presented at the "Meet the Investors" event at Radisson Blu in Chattogram, attended by more than 100 local and foreign investors from the Chattogram EPZ, Karnaphuli EPZ, Cumilla EPZ, Bepza Economic Zone-1 and Bepza Economic Zone-2.

Bepza Executive Chairman Major General Mohammad Moazzem Hossain said investors had kept economic activity going despite disruptions to energy markets and supply chains caused by global trade uncertainty and geopolitical tensions, as well as power and infrastructure constraints.

"Communication is the highest form of respect. Today's event will help us strengthen our partnerships, listen directly to investors, understand their problems and expectations, and find ways to make our investment environment more competitive and business-friendly," he said.

Praising the skills of export workers, Moazzem said the zones produce a wide range of goods, including footwear, garments, jewellery, eyewear, bags, safety equipment, wedding dresses and uniforms for peacekeeping missions.

He urged investors to expand their operations into Bepza Economic Zone-1, Bepza Economic Zone-2, Jashore EPZ and Patuakhali EPZ, saying the authority would continue to support their businesses.

Bepza Member (Investment Promotion) Md Tanvir Hossain presented the authority's performance in FY26, highlighting export growth, employment, land utilisation and progress in developing new zones.

In a separate presentation, Bepza Additional Executive Director (Enterprise Services and Industrial Relations) Md Nazmul Islam Bhuiyan outlined measures to improve worker welfare and labour standards.

He highlighted 45 online services, a 24-hour helpline (16128) and the implementation of the Employment Injury Scheme. He also discussed proposed amendments to the Bangladesh EPZ Labour Act, 2019, to bring it in line with international labour standards.

An open discussion followed, during which investors and Bepza officials exchanged views on operational challenges, services and labour laws.

Earlier, on 10 October, Bepza launched three specialised country desks in Dhaka for investors from China, South Korea and Japan.

Established in 1980, Bepza oversees eight export processing zones and two economic zones, which have attracted around $7.5 billion in investment from investors across 38 countries. Cumulative exports from the zones have reached approximately $130 billion.

The authority accounts for around 20% of Bangladesh's total exports and 19.17% of its total foreign direct investment (FDI), according to the information presented at the event.

On support for young entrepreneurs and talented youths, Prime Minister Tarique Rahman has said the government is working on plans to launch a startup fund worth Tk 5 billion (Tk 500 crore).

The prime minister on Saturday urged young people to take the lead in building a Bangladesh for all, saying national interests must come first to ensure the welfare of every citizen.

“Your goal should be Bangladesh first and Bangladesh for all. Young people must come forward to build such a Bangladesh,” he said.

The prime minister was speaking at the Youth Volunteer Award 2026 and Grant Distribution ceremony organised by the Ministry of Youth and Sports at the Shapla Hall of the Prime Minister’s Office in Tejgaon, reports UNB.

Highlighting the contributions of young people across the country, he said many youths are voluntarily helping others and standing beside people in times of need alongside their studies and professional responsibilities.

Tarique Rahman described their initiatives as important for the country and urged them to use their energy, courage, talent and initiative for national development and public welfare.

Addressing the award recipients, he said young people play a crucial role in advancing a country, noting that most athletes who succeed in competitions such as the Olympics are young.

The prime minister also referred to the War of Liberation and the 2024 mass uprising, saying while senior people might have contributed their wisdom, ideas and advice, young people played a significant role on the ground.

He said the government is working to implement the pledges made before the election, noting that those commitments are now not only the government's but also the people's.

He said the country can progress faster by harnessing young people's talent, innovative thinking and enthusiasm.

The prime minister urged them to look beyond their personal development and consider the welfare of all citizens.

At the ceremony, Tarique Rahman presented the Youth Volunteer Award 2026 to 15 young volunteers and representatives of youth organisations in recognition of their outstanding contributions to voluntary activities in different fields. Each recipient received a Tk 100,000 cheque, a crest and a certificate.

The government also provided grants of Tk 200,000 each to 432 youth organisations to strengthen their activities.

Three award recipients shared their experiences of voluntary work, while State Minister for Youth and Sports Md Aminul Haque spoke about various government plans for young people.

Prime Minister’s Political Adviser Mirza Abbas was present at the event. Youth volunteers from all 64 districts joined the programme online.

Bangladesh is seeking a $4.5 billion loan from the International Monetary Fund (IMF) in quarterly instalments from December this year through December 2029, with an agreement expected by year-end, a Bangladesh delegation official said.

The loan amount and conditions are expected to be finalised during staff-level negotiations after an IMF mission visits Bangladesh later this month, the official told The Business Standard on condition of anonymity.

Senior officials of the Bangladesh delegation accompanying Finance Minister Amir Khosru Mahmud Chowdhury expressed optimism about the timeline following what they described as "fruitful discussions" with IMF Deputy Managing Director Nigel Clarke in Bangkok, Thailand yesterday, on the sidelines of the 2026 IMF-World Bank Group Annual Meetings.

Prime Minister's Economic Affairs Adviser Rashed Al Mahmud Titumir did not directly confirm the proposed loan amount or number of instalments, saying these would be determined during staff-level negotiations and at an IMF board meeting.

He said Bangladesh must implement its reform initiatives by 2029, ahead of the 2030 national election, when the government would have to seek a public mandate.

Finance Minister Amir Khosru also said the new IMF programme would come with conditions that Bangladesh would have to fulfil, although some issues could be resolved through discussions and mutual agreement.

Speaking to reporters after meeting Clarke in Bangkok yesterday, he said discussions on the proposed programme were progressing positively. Further talks would determine the conditions and how they would be met, he added.

Revenue mobilisation, banking reforms in focus

The IMF is prioritising increased revenue mobilisation and financial sector reforms in discussions on the proposed loan, which could range from $4.5 billion to $5 billion, according to Sonali Jain-Chandra, deputy director of the IMF's Asia and Pacific Department.

At a press conference on the Asia-Pacific region yesterday, Jain-Chandra said Bangladesh's revenue-to-GDP ratio had fallen to 7%, placing it among the lowest in the world.

She said higher revenue collection was necessary to restore financial sector stability and finance development activities. The IMF also stressed the need for strategic measures to address major problems in the banking sector, maintain a contractionary monetary policy until high inflation comes under control, and implement reforms on schedule.

Khosru said the IMF had raised concerns about the banking sector, the tax-to-GDP ratio, bank recapitalisation and macroeconomic stability. Bangladesh agreed with the IMF's observations on these issues, and many had already been addressed, he added.

He also said the IMF is satisfied with Bangladesh's recent economic progress following the budget, despite global challenges, including the war in the Middle East.

NPL ratio rises to around 33%

Bangladesh presented plans for banking sector reforms during the discussions, including measures to restore depositor confidence and reduce non-performing loans (NPLs), a Bangladesh Bank delegation official said.

Depositors of troubled Sammilito Islami Bank are already receiving repayments, while National Bank began returning deposits yesterday as the government seeks to rebuild confidence in distressed banks through regular repayments.

The delegation is also preparing a strategy to reduce bad loans across the banking sector.

Under an IMF loan agreement signed in 2023 during the Awami League government, Bangladesh committed to reducing the NPL ratio to 10% by 2026. Instead, the ratio has climbed to around 33%.

The target for NPL reduction under the proposed new programme has yet to be determined, the official said.

The 2026 IMF-World Bank Group Annual Meetings began in Bangkok on 12 October and will continue until 18 October, bringing together finance ministers, central bank governors, policymakers and representatives of development partner organisations.

Electric vehicle (EV) demand is rising in Bangladesh, but limited charging infrastructure, high investment costs and gaps in after-sales services and battery recycling are holding back wider adoption.

EV sales started gaining momentum in 2025, although vehicle registration started in September 2022, according to officials at the Bangladesh Road Transport Authority (BRTA).

BYD Bangladesh, a major player in the country's new-energy vehicle (NEV) market, has delivered more than 1,400 vehicles, including electric and plug-in hybrid models, and operates seven flagship showrooms.

The company sold around 500 NEVs in 2025, averaging about 42 units a month, while average monthly sales rose to around 160 in 2026, nearly four times the previous year's rate, according to Amid Sakif Khan, managing director of BYD Bangladesh.

Sakif said demand has expanded beyond early adopters to families, businesses and corporate customers, driven by lower operating costs and environmental awareness.

Mohammad Saiful Islam Tushar, marketing lead at DHS Autos, the exclusive distributor of Changan Automobile's Deepal electric and plug-in hybrid vehicles, said customer enquiries have shifted from basic questions about charging, battery performance and driving outside Dhaka to concerns about running costs, warranties, after-sales service and resale value.

Deepal does not disclose sales figures, but Tushar said enquiries, test drives and customer acceptance are increasing. "Consumer confidence remains the biggest barrier, alongside vehicle prices, financing, taxation, charging access, battery life and resale prospects."

Apartment dwellers can face restrictions on installing chargers and difficulties securing electrical connections, while motorists travelling on highways need reliable charging facilities along their routes, he said.

Investment remains risky

Bangladesh's charging network is expanding, but the relatively small EV fleet is making it difficult for operators to generate enough business to justify the high upfront investment.

Sakif said around 30 public charging stations equipped to charge BYD vehicles have been established across the country.

CrackPlatoon Charging Solutions operates 32 public charging units, 241 private units and 335 residential installations, mainly in Dhaka and Chattogram, with additional coverage in Cumilla, Narayanganj and Gazipur.

The company recorded 1,972 charging sessions, consuming 33.73 megawatt-hours of electricity, in 2026, compared with 461 sessions and 11.88 megawatt-hours in 2025. Average daily sessions increased to three for direct-current (DC) chargers and 0.57 for alternating-current (AC) chargers, from 0.8 and 0.23, respectively.

Despite the increase, utilisation remains low. A 120kW DC charger in Cumilla recorded a usage ratio of 1.203% in 2026, up from 0.300% in 2025.

Engr Abu Mosaeb Khan, head of operations at CrackPlatoon, said a typical 120kW public charging station costs around Tk70 lakh, with commercial payback generally taking five to seven years or longer.

The payback period could fall below two years if utilisation reached 30%-50%, he said.

Around 70% of a station's investment may go towards substations, grid connections, cabling and other electrical infrastructure, he added. Demand charges and regulatory clearances further increase costs, making operators cautious about expanding before demand grows sufficiently.

Ekhon Charge's Tejgaon station served three to four vehicles a day in 2026, compared with four to five a week in 2025, according to Safi Ar Rahman, the company's EV activation executive.

Most users are plug-in hybrid vehicles, including the BYD Sealion 6, Chery Tiggo 8 Pro and Omoda C9, as well as BMW and Mercedes models.

Ekhon Charge operates four charging points in Tejgaon, Cumilla, Chattogram and Cox's Bazar. Safi said the government's 0% tax policy on imported EV chargers should help reduce equipment costs.

The company plans to extend its network to Panchagarh, Khulna and Sylhet and aims to achieve nationwide coverage within 1.5 to two years using chargers rated at 120kW to 180kW.

After-sales services struggle to keep pace

The expansion of charging infrastructure is only one part of the challenge, as EV owners also need technicians trained to handle high-voltage systems, battery management and software-driven components.

Sakif said BYD had five service centres and two spare-parts dealer partners. The company plans to add more service points and roadside technicians while expanding training in high-voltage systems, diagnostics and batteries, alongside nationwide spare-parts distribution.

Deepal is also building its technical capacity. Tushar said technicians need expertise in high-voltage systems, battery management, charging, electronics, software diagnostics and safety. The company is continuing training and developing its spare-parts and diagnostic capabilities.

Abu Sufiyan Arnab, a BYD Atto 3 owner, said spare parts are readily available through the official distributor and he had not experienced major mechanical problems.

However, he is concerned about access to servicing in district towns, while EV spare parts are more expensive than those for conventional vehicles.

Battery recycling remains a major gap

Battery durability and disposal are expected to become increasingly important as the country's EV fleet ages.

Sakif said BYD provides an eight-year battery warranty and estimates battery life at 12-14 years. Its battery management system monitors performance, while authorised service centres can assess battery health.

Deepal also offers an eight-year battery warranty. Tushar said its modular battery design allows individual sections to be diagnosed and, where appropriate, repaired or replaced without replacing the entire battery pack.

However, Bangladesh has no comprehensive system for collecting, reusing and recycling end-of-life EV batteries.

Sakif said developing such a system will require cooperation among manufacturers, distributors, recyclers and government agencies. No specific investment or timeline has been announced.

Arnab said the potential cost of battery replacement after eight to 10 years, alongside the shortage of public charging facilities, remained among his biggest concerns.

Automakers eye localisation and long-term growth

Despite the infrastructure gaps, companies are preparing for a larger market.

Sakif said BYD is discussing plans for an assembly and manufacturing plant in Bangladesh, although no timeline has been announced. The company aims to become the market leader within three to five years, offering vehicles across affordable and luxury segments and expanding its after-sales network nationwide.

Deepal is also interested in localising production, but Tushar said investment would depend on market size, government policy, taxation, infrastructure, foreign exchange conditions and the availability of a reliable local supplier base.

Both companies say wider adoption will require more than vehicle sales. Tushar identified home and highway charging, trained technicians, after-sales services, financing, insurance, consumer education and long-term policy support as key requirements.

Sakif called for policies covering public charging, electricity supply to charging stations, battery recycling, smart-city development and greater use of electrified vehicles in commercial and public transport.

Lower running costs offer a strong incentive

For existing owners, lower running costs provide a major incentive to switch to electric vehicles.

Arnab, who drives around 50km a day, said he spends about Tk1,400 on electricity to run his EV for seven days, compared with around Tk900 a day when he used a fuel-powered vehicle.

However, public charging facilities remain extremely limited outside Dhaka, creating anxiety about long-distance journeys.

With demand for electric and plug-in hybrid vehicles rising, Bangladesh remains in the early stages of building the infrastructure and support services needed for mass adoption. Charging utilisation remains low, while much of the ecosystem is concentrated in major cities.

As Tushar noted, wider EV adoption depends not simply on bringing more vehicles into the country, but on developing the entire ownership ecosystem alongside them.

Finance Minister Amir Khosru Mahmud Chowdhury has said Bangladesh and the International Monetary Fund (IMF) will hold further discussions for two weeks from next week to work out the details of the country's loan proposal, with the aim of finalising the outstanding issues.

"In principle, everything is fine. Now, the two teams will sit together to discuss how to close the deal," he said after a meeting with the IMF in Bangkok today (16 October).

The meeting focused on the final review of a proposal submitted by Bangladesh to the IMF, the minister said.

All multilateral organisations are working closely with Bangladesh, he said, adding that all multilateral and bilateral partners, including the World Bank, IMF, Asian Development Bank and Japan International Cooperation Agency, are keen to support the country.

The coming year is very important for Bangladesh and development partners share that view, Khosru stated.

Dhaka has proposed signing a Country Partnership Framework with the World Bank, he added.

The government has drawn up a development framework for the next five years, said the minister.

The comments come during the 2026 annual meetings of the IMF and the World Bank Group, which are taking place in Bangkok, Thailand, from 12 to 18 October.

Garment exporters have sought Prime Minister Tarique Rahman’s intervention to resolve a dispute over the clearance of imported coarse cotton yarn, saying that delays could disrupt production and hurt export orders from international retailers and brands.

In a letter to the prime minister yesterday, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) urged the government to resolve the issue and withdraw an order by the revenue board.

In that order in the first week of September, the National Board of Revenue (NBR) suspended the bond facility for imports of 10 to 30-count cotton yarn. This range usually covers coarse yarn mostly used in making knitwear items.

BGMEA and BKMEA said their members are facing difficulties clearing the imported yarn from Chattogram port despite the commerce ministry’s subsequent move to withdraw the requirement for bank guarantees for imports of 10 to 30-count yarn.

“Yes,” BGMEA President Mahmud Hasan Khan said in a WhatsApp message yesterday when asked whether the associations have sent the letter to the prime minister.

The Daily Star has seen a copy of the letter where BKMEA President Mohammad Hatem signed it on behalf of the knitwear trade body.

In the letter, apparel manufacturers said that garment exports could be significantly affected if the 10 to 30 count-yarn consignments remain stuck at the port and the previous facility for duty-free imports under the bonded warehouse system is not restored promptly.

They also said that international retailers and brands could lose confidence in Bangladesh if exporters fail to deliver garments on time because they could not obtain the raw materials needed for production.

The dispute centres on the conditions for clearing yarn imported under letters of credit (LCs) opened before September 7, when the NBR issued its order withdrawing the bond facility for 10 to 30-count cotton yarn.

Following the order, customs officials began requiring bank guarantees for the release of such consignments, including yarn imported under LCs opened before the new rules took effect.

The commerce ministry issued a circular on September 13 withdrawing the bank guarantee requirement. However, exporters said customs officials continue to hold up consignments, citing the need for further instructions from the authorities.

The exporters said they want yarn imported under earlier LCs to be released without imposing the new conditions, saying that they made their import commitments under the previous rules.

Nearly 29% of highly educated young people in Bangladesh are unemployed, while around half of highly educated workers are employed in jobs that do not fully use their qualifications and skills, according to the International Monetary Fund (IMF).

The findings were highlighted in the IMF's Regional Economic Outlook: Asia and Pacific, released yesterday (15 October) at a press conference at the Queen Sirikit National Convention Centre in Bangkok, Thailand.

The report said Bangladesh's overall youth unemployment rate stands at 12-13%, but the situation is far worse among highly educated young people.

A mismatch between educational quality and labour market demand has left many struggling to find suitable jobs.

Many graduates work below their qualifications

According to the IMF, nearly 50% of highly educated workers in Bangladesh are employed in occupations below their qualifications.

The gap between the skills acquired through education and employers' needs is a key reason, forcing many people to accept jobs that do not match their training and limiting the economy's productivity.

The report also identified the dominance of the informal sector as a major weakness in the labour market.

Many workers in agriculture and other informal sectors lack formal employment contracts, job security and opportunities for career advancement. Conventional unemployment figures do not fully reflect this insecurity, it said.

Demographic dividend faces employment challenge

The IMF projected that Bangladesh's working-age population, aged 15-64, would grow by around 10-12% between 2025 and 2035.

Creating productive, quality jobs in manufacturing and services will be crucial to turning this demographic growth into an economic advantage.

Without sufficient employment opportunities, rising joblessness could fuel frustration among young people and slow economic growth, the report warned.

AI reshapes labour market demand

The report also highlighted the impact of artificial intelligence (AI) on employment across Asia.

Hiring demand in occupations highly exposed to AI has fallen by nearly 10% compared with occupations less affected by the technology, while demand for workers with specialised AI-related skills is increasing.

The IMF warned that Bangladesh's employment challenges could deepen unless workers' skills keep pace with technological changes.

Improving skills, expanding labour market capacity and preparing strategies to create jobs for the future will be key to addressing the challenges.

The government has asked all ministries and their subordinate offices to submit time-bound plans by 25 October to amend relevant laws, regulations and agreements, and make other changes needed to shift the country's fiscal year from July-June to April-March.

According to sources, the Cabinet Division recently sent letters to the Ministry of Public Administration and other ministries, seeking plans for the necessary changes.

The Ministry of Public Administration has since instructed its subordinate offices and agencies to submit their respective plans by the same deadline.

A letter signed by Public Administration Ministry Deputy Secretary Mosaddek Mehedi Imam said the review should cover relevant laws, rules, circulars, statutory regulatory orders (SROs), contracts and memorandums of understanding, as well as statistical and information technology systems.

The requested plans are intended to identify the amendments and revisions needed to implement the fiscal-year change, according to the letter.

How the fiscal year is changing

At a Cabinet meeting on 17 August, the government decided to shift Bangladesh's fiscal year from July-June to April-March.

To facilitate the transition, the government has set fiscal year 2027-28 as a nine-month transition period, running from July 2027 to March 2028.

The first full fiscal year under the new system will begin on 1 April 2028 and end on 31 March 2029.

The change will require adjustments to budget preparation by the Finance Division, tax collection by the National Board of Revenue, regulations governing public services, and financial and legal frameworks in the private sector.

Officials concerned said the Cabinet Division had sought time-bound plans to ensure the necessary changes are completed within the stipulated period.

Bangladesh's GDP per capita surpassed India's in FY26 and is projected to remain higher for the next two fiscal years, but the International Monetary Fund (IMF) expects India to regain the lead in FY29 and widen the gap through FY31.

In its latest World Economic Outlook database, released on Tuesday, the IMF puts Bangladesh's GDP per capita in current US dollar at $2,886 in FY26, compared with $2,750 for India—a difference of just $136.

Despite having an economy roughly eight times larger, India is projected to stay behind Bangladesh until FY28. The forecast shows India's GDP per capita rising to $3,662 in FY29, surpassing Bangladesh's $3,334.

By FY31, the gap is expected to widen to around $709, with India's figure projected to reach $4,389 and Bangladesh's $3,680.

Bangladesh had previously maintained a higher GDP per capita than India for seven consecutive years from 2018, before India overtook it in 2025.

GDP per capita is calculated by dividing a country's total economic output by its population. It is commonly used to compare average economic output per person, although it does not directly measure how income is distributed or the cost of living.

India retains a lead in purchasing power

The picture changes when differences in living costs are taken into account.

India remains ahead of Bangladesh in GDP per capita measured at purchasing power parity (PPP), which adjusts for differences in the prices of goods and services between countries.

According to the IMF database, India's GDP per capita in PPP terms is projected at $12,998 in FY26, compared with $10,884 for Bangladesh, giving India a 19.4% advantage.

India has remained ahead on this measure every year since 1994, and the IMF expects it to retain that position through 2031, with the gap widening to around 45%.

Moreover, despite Bangladesh's projected lead in GDP per capita at current prices, India is expected to remain South Asia's fastest-growing economy over the forecast period.

Its GDP is projected to rise from $4.06 trillion in FY26 to $6.74 trillion in FY31, with annual growth forecast at 7.02% in FY27 and 6.81% in FY31.

Bangladesh, by contrast, is projected to record the region's slowest economic growth. Its annual growth rate is forecast to fall to 2.21% in FY28 before recovering to 2.97% by FY31.

The projections also place Bangladesh's ambition of becoming a $1 trillion economy by 2034 well above the IMF's current estimates. The Fund puts the country's GDP at $506.4 billion in FY26 and projects it to reach $674.4 billion by FY31.

Maldives leads in South Asia

Bangladesh also remains behind several other South Asian economies in GDP per capita.

The Maldives is projected to have the region's highest figure in FY26, at $19,507, followed by Sri Lanka at $5,062 and Bhutan at $4,933.

Pakistan's GDP per capita is estimated at $1,836, while Nepal is projected to have the region's lowest figure, at $1,540.

Emerald Oil Industries PLC has once again missed its production restart deadline, as delays in obtaining an electricity connection and a seasonal shortage of rice bran, its main raw material, have stalled the listed company's plan to resume commercial operations.

The company had expected to restart production by 30 September 2026, but the deadline passed without operations resuming. It is also holding back production during the current off-season because of insufficient raw material, according to a disclosure published on the Dhaka Stock Exchange (DSE) today (15 October).

The share price of the company closed at Tk27.90 on the Dhaka Stock Exchange today.

Emerald Oil said recent electricity shortages in rural areas and shortfalls in the national grid had delayed the required electricity connection from the Bangladesh Power Development Board (BPDB).

To facilitate the connection, the company has installed solar panels worth around Tk80 lakh and deposited approximately Tk50 lakh towards the connection costs specified by BPDB. However, it has not announced a revised date for resuming commercial production.

The company also said rice bran, its primary raw material for producing rice bran oil, becomes available in the market from November because of its seasonal nature. Limited supplies during the current off-season have therefore prevented it from starting commercial operations.

The latest delay follows an earlier disclosure on 30 July, when the company said it expected to resume commercial operations by the end of September.

Factory shut for more than two years

Emerald Oil's factory has remained closed since 1 January 2024, when the company suspended production citing inadequate gas supply.

In a disclosure on 8 July, the company said its board had authorised management to take the necessary steps to reopen the factory and carry out repairs and maintenance.

The planned work included purchasing and installing a new boiler, transformer and electrical substation, along with repairing and maintaining machinery, including the refinery unit. The company estimated that the work could cost around Tk10 crore.

Despite these preparations, the company has yet to restart production because of the electricity connection issue and the unavailability of sufficient rice bran.

Repeated shutdowns undermine recovery efforts

Established in 2008, Emerald Oil began producing rice bran oil under the Spandan brand in 2011 and was listed on the stock market in 2014.

The company suspended production in 2017 amid financial and business difficulties. It resumed trial production in late 2021 following investment from Minori Bangladesh Ltd, an associate of Japanese agricultural company Minori Co Ltd, before returning to full-scale production in January 2022.

However, the recovery proved short-lived as gas shortages, raw material constraints and financial difficulties continued to affect operations.

In September 2023, Emerald Oil, Minori Bangladesh and Jamuna Edible Oil signed an agreement to increase rice bran oil production. Under the plan, Jamuna Edible Oil's facilities would be used to process crude rice bran oil, with a target of raising daily production to 160 tonnes by processing 800 tonnes of rice bran a day.

The subsequent suspension of operations and business difficulties, however, disrupted the company's recovery plans.

Financial disclosures not updated

The prolonged shutdown has been compounded by the absence of updated financial information. According to the information provided, Emerald Oil has not published financial statements since January 2023, leaving investors without a clear picture of its current financial position, liabilities and ability to finance a production restart.

The company's shares are currently traded in the Z category on the DSE. General investors hold 41.04% of its shares.

The lack of recent financial statements makes it difficult for investors to assess the company's performance and recovery prospects, particularly after more than two years of suspended production.

For Emerald Oil, securing a reliable electricity connection, ensuring adequate supplies of rice bran and completing factory repairs will be crucial to restarting operations.