The upward trend in remittances sent by Bangladesh expatriates has continued in January, with receiving over US $1.59 billion in 13 days of the month.

Bangladesh received $17.85 billion in inward remittances from July to January 13, 2026, in the current fiscal year, FY 2025-26. It was 14.7 billion in the same period of the previous FY2024-25, and saw a growth of 21.5 percent.

Blessings on the remittance, the gross forex reserves of Bangladesh cross $33 billion. As per the IMF standard BPM6, the forex reserves stood at $29 billion plus.

Arif Hossain Khan, Executive Director and spokesperson of Bangladesh Bank, confirmed that the expatriates have sent $1.59 billion in the first 13 days of January 2026, which was $926 million in the same period of January 2025. It means the remittance earnings grew by 71.8 percent in this time.

The growth is attributed to several factors, including incentives offered for sending money through legal banking channels, increased encouragement for using the formal system and the active role of exchange houses.

In FY2025-26, Bangladesh received $2.47 billion in remittances in July, $2.42 billion in August, $2.68 billion in September, $2.56 billion in October, $2.88 billion in November, and $3.22 billion in December.

The data revealed that the average inward remittance flow was over $2.42 billion in the last six months. This robust flow of remittance influences Bangladeshi policymakers to discourage lending from the IMF with tough conditions.

Bangladesh’s Annual Development Programme (ADP) has recorded its lowest mid-year implementation rate in two decades, with only 17.54 per cent of allocations spent in the first six months of the 2025-26 fiscal year.

According to the Implementation Monitoring and Evaluation Division (IMED), Tk 418.76 billion was spent between July and December, down from Tk 500.02 billion in the same period last year.

The rate is lower than the 17.97 per cent recorded in 2024-25 and well below the 22-24 per cent seen in the three preceding years.

December alone saw 5.8 per cent of allocations spent, slightly higher than 5.67 per cent in the same month last year.

The interim government has already slashed Tk 300 billion from the ADP, reducing the revised allocation to Tk 2 trillion.

The biggest cuts came in health and education, with health spending reduced by 73 per cent and secondary and higher education by 55 per cent.

Political upheaval following last year’s August change of government, curfews, and shutdowns slowed project execution.

Many contractors linked to the previous administration went into hiding, while the new government reviewed projects, leaving development activity stagnant.

At the end of 2024-25, ADP implementation stood at 67.85 per cent, down from 80.63 per cent the year before.

IMED data shows no fiscal year since 2004-05 recorded such a low rate.

The revised ADP was approved at Monday’s NEC meeting chaired by the chief advisor.

Officials noted that while disbursement is usually slow in the first half of the year, political disruption and budget cuts have pushed implementation to historic lows.

Most of the gold currently in the country, as well as new imports, is coming through illegal channels, National Board of Revenue (NBR) Chairman Abdur Rahman Khan said today (14 January).

The NBR would provide necessary support to bring discipline to the sector, he said while speaking at the NBR's "Meet the Business" event in Agargaon, Dhaka.

"If formal requests are made to the Bangladesh Bank and the Ministry of Commerce for legal gold imports, NBR will provide the required support," he added.

The NBR chairman also highlighted that some officials of the board have allegedly been involved in illegal gold import activities, and measures have already been taken against certain individuals.

During the event, leaders of the Bangladesh Jewellers Association (Bajus), including its President Enamul Haque Khan, called for simplifying gold imports, issuing licenses to genuine traders, reducing VAT and other taxes, and making the tax payment process easier.

Traders noted that while gold is entering the country illegally, they want to operate without allegations or complications. They argued that simplifying the import process would reduce illegal trade, improve transparency, and allow them to conduct business legally under the VAT and tax system. To this end, Bajus presented several demands, including easier import procedures.

A Bajus leader added that in the past, the government issued 18 gold import licenses, but at least 10 went to individuals who were not genuine traders.

Some license holders had no connection to the jewellery business, while others were even cricketers, leaving real traders excluded, he said.

"Smugglers obtain licenses not to conduct business but to avoid legal hassles," the Bajus leader said, calling for licenses to be granted only to genuine traders to promote legal imports.

Traders also pointed out that due to complicated import procedures, gold prices in the domestic market are at least Tk30,000 per kilogram higher than in neighbouring countries such as India, Singapore, or Dubai, forcing many to procure gold through illegal channels.

The World Bank has downgraded its economic growth forecast for Bangladesh to 4.6% for the current fiscal 2025-26 from its October forecast of 4.8%, but hoped reduced political uncertainty to drive next year's growth to 6.1%.

In its latest Global Economic Prospects report released on Tuesday (13 January), the global lender stated that the country's growth is expected to rebound from an estimated 3.7% growth in FY25, with private consumption strengthening alongside easing inflationary pressures.

It also noted, "Reduced political uncertainty related to the general election in early 2026 and the expected implementation of structural reforms by a new government are projected to support stronger industrial activity in FY2026/27."

"These factors are also anticipated to lead to faster public spending and investment growth than previously projected", read the report.

Moreover, the World Bank emphasized that political transitions following the scheduled elections in Bangladesh this year could improve economic stability, with better predictability in growth-enhancing reform efforts.

Notably, the World Bank's revised outlook broadly aligns with other multilateral agencies. The United Nations earlier projected Bangladesh's economy to grow 4.6% in FY26, rising to 5.4% in FY27.

Similarly, the Asian Development Bank, in its September 2025 outlook, forecast 5% growth in FY26, while the International Monetary Fund estimated growth at 4.9% in FY26 and 5.7% in FY27.

However, the interim government set a 5.5% GDP growth target for FY26, exceeding the projections made by international agencies.

Growth in South Asia to slow

After an estimated strong 7.1% growth in 2025, South Asia's growth is expected to slow to 6.2% in 2026, mainly reflecting the impact of increased US import tariffs on India's export growth.

However, the report stated that growth in the region is then set to increase to 6.5% in 2027, as the effects of political uncertainty in several economies dissipate.

The regional outlook report stated that, "Downside risks to the regional outlook include further increases in trade restrictions and global trade policy uncertainty, tighter-than-expected financial conditions amid heightened financial vulnerabilities, increased social unrest, and more frequent or intense disasters due to natural hazards."

"However, there are multiple upside risks, including possible progress in bilateral trade negotiations, faster technology-led investment growth, and the potential benefits from more resilient political environments after elections in several economies."

Meanwhile, global economic growth projected to remain broadly steady over the next two years, easing to 2.6% in 2026 before rising to 2.7% in 2027, despite persistent trade and policy uncertainty.

Alphabet briefly hit $4 trillion in market valuation on Monday, as the Google parent's sharpened artificial intelligence focus allayed doubts about its strategy and thrust it back to the forefront of the high-stakes race.

In the latest sign that its efforts were paying off, Alphabet said the next generation of Apple's AI models will be based on Google's Gemini under a multi-year deal.

The company's class-A shares rose as much as 1.7% to $334.04 to hit a record high before giving up those gains.

A Reuters report earlier this year said that Samsung Electronics plans to double this year the number of its mobile devices with AI features powered by Gemini.

Alphabet last week surpassed Apple in market capitalization for the first time since 2019, becoming the second most valuable company in the world.

The milestones mark a remarkable change in investor sentiment for Alphabet, with its stock surging about 65% in 2025, outperforming its peers on Wall Street's elite group of stocks, the so-called Magnificent Seven.

The shift was fueled by the company quelling concerns that it let an early AI advantage slip by turning a once-overlooked cloud unit into a major growth engine and drawing a rare tech investment from Warren Buffett's Berkshire Hathaway.

"Of the Magnificent 7 stocks, it's the one name that has surprised us all over the last 12 months and they're making inroads beyond their traditional model," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.

"What I would give the company credit for is innovation, that's what they've done to separate them from a lot of other firms in recent days and you're seeing it in earnings data."

The new Gemini 3 model has drawn strong reviews, intensifying pressure on OpenAI after GPT-5 left some users underwhelmed.

Google Cloud's revenue jumped 34% in the third quarter, with a backlog of non-recognized sales contracts rising to $155 billion.

Renting out Google's self-developed AI chips that were reserved for internal use to outside customers has also enabled the unit's breakneck pace of growth.

Indicating the rising demand, The Information reported that Meta Platforms was in talks to spend billions of dollars on Alphabet's chips for use in its data centers starting from 2027.

Meanwhile, Alphabet's dominant revenue generator – the advertising business – has largely held steady in the face of economic uncertainty and intense competition.

Alphabet is the fourth company to hit the $4 trillion milestone after Nvidia, Microsoft and Apple.

The stock has also benefited after a US judge in September ruled against breaking up the company and allowing it to retain control of its Chrome browser and Android mobile operating system.

The yen fell ​to its lowest against the dollar since July 2024 on Tuesday as traders braced for a Japanese election and also ‌hit lows against European currencies, with the dollar pressured by worries about the Federal Reserve’s independence.

Those fears, after the Trump administration opened a criminal investigation into Chair Jerome Powell, remain the most important factor for markets in the long term, analysts said.

Still, with the administration’s move drawing criticism from key members of Trump’s Republican Party, it had less of an impact on daily price moves. Instead, the Japanese yen was the main mover, briefly sliding to the weak side ‌of 159 per dollar for the first time since July 2024.

That followed news from Kyodo that Japanese Prime Minister ​Sanae Takaichi had conveyed to a ruling party executive her intention to dissolve parliament’s lower house at the outset of its regular session scheduled to start on January 23.

The dollar was last up 0.5 percent on the yen at 158.9 yen.

Takaichi is ahead in ‍the polls, and, should she achieve a decisive electoral victory, investors may further buy into the “Takaichi trade” -- a view that the premier’s desire for more fiscal stimulus would push stocks higher, while sending bond yields higher and the yen lower.

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That was certainly Tuesday’s trade with the Nikkei share index hitting a new record high, and yields ⁠on 30 year Japanese government bonds surging 12 bps.

The yen sank to record lows against the euro and the Swiss franc , while also hitting ‍its weakest level against the British pound since August 2008.

Taiwan has reached a "general consensus" with the United States on a trade deal, the democratic island's negotiators said Tuesday, after months of talks.

Taiwan and the United States began negotiations in April to hash out a trade deal after US President Donald Trump slapped a 32 percent tariff on Taiwanese exports, which was later lowered to 20 percent, as part of his sweep of measures against dozens of trade partners.

Taiwanese President Lai Ching-te has pledged to boost investment in the United States and increase defence spending as his government tries to further reduce the levy on its shipments, as well as avoid a toll on its semiconductor chip exports.

"The goal of the US-Taiwan tariff negotiations has always been to seek reciprocal tariff reductions without stacking tariffs, and to obtain preferential treatment under Section 232 for semiconductors, semiconductor derivatives, and other items," the Office of Trade Negotiations said in a statement, adding there was a "general consensus" on these issues.

Section 232 refers to part of the US Trade Expansion Act that allows tariffs to be imposed when national security is found to be at risk.

"Both sides are currently discussing the schedule for a concluding meeting, and an announcement will be made once it is confirmed," the statement said.

Taiwan's trade officials also vowed to provide "a complete explanation of the negotiations and the agreement" to the opposition-controlled parliament and the public.

Taiwan is a powerhouse in the manufacturing of semiconductor chips, which are the lifeblood of the global economy, as well as other electronics.

Trump has previously accused Taiwan of stealing the US chip industry and his administration had made clear it wants more of the critical technology made on American soil.

The US government launched investigations under Section 232 into semiconductors and chip-making equipment last year.

Taiwan's trade surplus with the United States was the seventh highest of any country in 2024, reaching US$73.9 billion.

More than half of its exports to the United States are information and communications technology products, including semiconductors.

Lai has been at pains to find favour with Trump, vowing to raise defence spending to more than three percent of GDP this year and five percent by 2030.

But the opposition-controlled parliament has stymied his government's budget for 2026 and an additional $40 billion defence spending.

TSMC, the world's largest contract chipmaker, has also pledged to invest an additional US$100 billion in the United States.

But Taiwanese Deputy Foreign Minister Francois Chih-chung Wu told AFP recently that Taiwan planned to keep making the "most advanced" chips on home soil.

State-owned Sonali Bank has urged the government to issue bonds against unpaid loans to the Bangladesh Sugar and Food Industries Corporation (BSFIC) to address the lender’s capital shortfall.

The state-owned corporation, which manages 15 sugar mills, owes the bank Tk 6,600 crore.

Another state-owned agency, the Investment Corporation of Bangladesh (ICB), owes Sonali Bank Tk 1,700 crore. The bank is also awaiting receivable commissions of around Tk 5,500 crore tied to the Rooppur Nuclear Power Project.

“We have been able to reduce our capital shortfall over the past few years, and we will have no shortfall if these loans are recovered,” Sonali Bank Managing Director Md Shawkat Ali Khan said at a press briefing at the bank’s Dhaka headquarters yesterday.

At the end of September 2025, the bank’s capital shortfall stood at Tk 2,174 crore, down from Tk 5,949 crore in December 2024, according to figures presented by Md Iqbal Hossain, the bank’s chief finance officer.

Provision shortfalls also fell to Tk 1,801 crore from Tk 4,632 crore over the same period.

Sonali Bank must maintain provisions of Tk 3,000 crore against dues from BSFIC, and Tk 1,300 crore for ICB investments.

Officials said these shortfalls are the main driver of the bank’s capital gap.

Other factors cited include loans to Orion Infrastructure, delayed government compensation, and unrecovered commissions of Tk 5,500 crore against letters of credit totalling Tk 94,246 crore issued for the Rooppur project.

At the conference, Khan highlighted the bank’s improved financial structure, crediting reforms, targeted planning, and strengthened loan recovery efforts.

He said, “Public confidence in Sonali Bank is very high. It is because of this trust that people deposit more funds.”

“Sonali Bank is now much more careful in selecting borrowers. Our depositors are a blessing for us,” Khan said, noting that no incidents similar to the Hallmark scandal have occurred since.

Operating profit rose 41 percent year-on-year in 2025 to Tk 8,017 crore. Audited net profit is expected to fall between Tk 1,100 crore and Tk 1,700 crore. The bank’s non-performing loan ratio fell to 16 percent at the end of the year, with plans to reduce it below 9 percent by 2026.

Md Shawkat Ali Khan claimed that no such incident has occurred at Sonali Bank since the Hallmark scandal – a massive loan scandal involving more than Tk 3,500 crore

“Sonali Bank is now much more careful in selecting borrowers. Our depositors are a blessing for us,” he said.

The bank’s operating profit rose 41 percent year-on-year in 2025 to Tk 8,017 crore. Audited net profit is expected to fall between Tk 1,100 crore and Tk 1,700 crore.

Khan also said the bank’s non-performing loan ratio fell to 16 percent at the end of the year, with plans to reduce it below 9 percent by 2026.

Gold prices were largely steady near its all-time peak on Tuesday, ‌supported by ongoing geopolitical tensions, while investor caution ahead of key inflation data limited upside momentum.

Spot gold traded 0.1 percent lower at $4,588.43 per ounce as of 0947 GMT, following a record high of $4,629.94 in the previous session. US gold futures for February delivery slipped 0.4 percent to $4,597.50.

“A ‌modest recovery in the US dollar, driven by hawkish comments from a ​senior Fed official, and investors’ focus on the release of US CPI data later in the session acts as a headwind (for gold),” said ActivTrades analyst Ricardo ‍Evangelista.

Federal Reserve Bank of New York President John Williams said on Monday that the central bank does not face any near-term pressure to change the stance of monetary policy.

Investors are ⁠currently anticipating two interest rate cuts this year, with today’s Consumer Price ‍Index data expected to provide further clues on monetary policy going forward.

On the geopolitical ‌front, ‌Russian forces launched the year’s most intense wave of missile attacks on Ukraine early on Tuesday, killing four people and injuring several others.

Meanwhile, US President Trump said on Monday any country that does business with Iran will face ⁠a 25 percent tariff on trade ⁠with the United ​States.

Non-yielding assets tend to do well in a low-interest-rate environment and when geopolitical or economic risks spike.

“With (gold) prices consolidating above the $4,500 level, supported by a bearish outlook for ‍the dollar and ongoing geopolitical uncertainty, the $5,000 mark appears increasingly within reach and could be tested in the first half of the year,” Evangelista added.

A group of Bangladeshis living abroad has expressed strong interest in contributing to the country's economic development, strengthening governance and institutional capacity, and promoting skilled workforce and youth development by leveraging their experience, global exposure, and technical expertise.

They said that following the mass uprising and the upcoming national election, the economy is expected to rebound through fresh investment and job creation, particularly at a time when the growing use of artificial intelligence has made skilled human capital increasingly important.

In this context, expatriates can play a crucial role by channelling remittances and investments and engaging more actively in the country's economic development, they added.

The views were shared at a policy dialogue held in Dhaka on Sunday night (11 January) by the Global Bangladeshi Alliance (GBA), a US-based, non-partisan, research-driven organisation.

The dialogue focused on ensuring democratic governance and institutional reform, economic development through trade and investment, ICT innovation and job creation, youth empowerment and skill development, diaspora engagement, international advocacy, and the revitalisation of the Bangladesh caucus.

Veteran politician and BNP standing committee member Dr Abdul Moyeen Khan attended the programme as the chief guest, while renowned political figure Mahidur Rahman presided over the event.

Policymakers, academicians, business leaders, and civil society representatives were present as special guests.

Welcoming the diaspora, Abdul Moyeen Khan said expatriates had returned to the country with the intention of contributing to national development. He noted that several projects and policy issues were presented during the dialogue and said that the country would benefit if those initiatives were implemented.

"You have focused on job creation and other important issues for our economy. Bangladeshi youths are very close to realising the vision of economic development, and we must nurture this potential with the support of expatriates," he said.

He also said that former prime-minister Begum Khaleda Zia, with a visionary outlook, had established the information and communication technology ministry, which paved the way for technology adoption in the country.

Referring to recent political developments, he expressed hope that the upcoming election would restore democratic governance and said diaspora engagement would be essential to boosting the economy.

GBA co-chair Kawsar Chowdhury stressed the need to diversify the export basket by strengthening the SME sector and other emerging industries, alongside creating more jobs and expanding manpower exports to new destinations.

Conference president Mahidur Rahman said that members of the diaspora had previously been unable to return to the country or speak openly. "After the uprising, we returned to contribute to the economy. At present, we are supporting the economy mainly through remittances," he said.

He added that future political leaders must consider how expatriate Bangladeshis can play a more active and structured role in the country's economic development.

Amidst the stand-off between traders and the government over the implementation of the National Equipment Identity Register (NEIR), the government has reduced import taxes on handsets by approximately 30% to lower the price of imported devices.

The National Board of Revenue (NBR) said the move aimed at keeping devices affordable while supporting the local manufacturing industry.

In two separate notifications issued today (13 January), the NBR reduced the overall import tax on finished mobile phone handsets from about 62% to 43.43%. At the same time, import taxes on components used by local handset manufacturers were lowered from around 17% to nearly 12%.

According to a NBR press release, the revised duty structure is expected to reduce the price of each imported finished mobile phone priced above Tk30,000 by around Tk5,500.

Under the new orders, import duty on handsets has been cut from 25% to 10%, while duty on components for local manufacturers has been reduced from 10% to 5%.

The revenue authority said the decision was made to ensure mobile phones remain affordable for the general public and to facilitate wider access to digital services.

It added that the dual measures were designed to strike a balance between consumer interests and the sustainability of the domestic mobile phone assembling industry.

The NBR reaffirmed that the government's efforts to keep mobile phone prices within consumers' reach would continue as part of its broader goal of promoting digital inclusion and expanding access to technology nationwide.

The tax cuts come amid the rollout of the NEIR, a regulatory initiative introduced under the supervision of the Bangladesh Telecommunication Regulatory Commission (BTRC) to curb the use and trade of illegal, counterfeit, and unregistered mobile phones.

Under NEIR, every mobile handset must be registered using its unique International Mobile Equipment Identity (IMEI) number before it can access cellular networks. Authorities say the platform will help block stolen or smuggled devices, reduce grey market imports, improve network security, and ensure a level playing field for compliant importers and manufacturers.

However, the implementation of NEIR has sparked protests by mobile phone traders across the country, particularly small and medium retailers. Protesters argue that the system could disrupt business and impose additional financial and administrative burdens.

Traders demanded a longer transition period, clearer guidelines, amnesty for existing stock, and stronger public awareness campaigns before full enforcement of the system.

The Bangladesh Securities and Exchange Commission (BSEC) has approved the draft prospectuses of three closed-end mutual funds, with a combined target size of Tk75 crore, marking a fresh boost for the capital market amid a slowdown in new product launches.

The approval was given at a commission meeting held at the regulator's office yesterday, according to a press release.

The approved funds are Midland Bank Growth Fund, Midland Bank Balanced Fund, and the Shariah-based Sandhani AML SLFL Shariah Fund.

Market participants have welcomed the move, describing it as a positive signal at a time when the introduction of new investment products in the capital market has remained sluggish.

According to the press release, the initial target size of the Midland Bank Growth Fund has been set at Tk25 crore. As the sponsor, Midland Bank PLC has invested Tk2.5 crore in the fund, while the remaining Tk22.5 crore will be raised from general investors. The fund's unit face value has been fixed at Tk10.

Midland Bank Asset Management Company Limited will act as the asset manager of the fund. Sandhani Life Insurance Company Limited will serve as the trustee, while Commercial Bank of Ceylon PLC will act as the custodian.

At the same meeting, the commission also approved the draft prospectus and abridged version of the Midland Bank Balanced Fund. The fund's initial target size has also been set at Tk25 crore. Midland Bank PLC, as the sponsor, will contribute Tk2.5 crore, and the remaining Tk22.5 crore will be offered to general investors. The unit face value of the fund has been fixed at Tk10.

Midland Bank Asset Management Company Limited will serve as the asset manager, while Sandhani Life Insurance Company Limited and Commercial Bank of Ceylon PLC will act as the trustee and custodian, respectively.

In addition, the commission approved the draft prospectus of the Shariah-based closed-end mutual fund Sandhani AML SLFL Shariah Fund. The fund's initial target size has been set at Tk25 crore. The sponsor, Sandhani Life Finance Limited, will invest Tk2.5 crore, while the remaining Tk22.5 crore will be raised from general investors. The unit face value of the fund has also been fixed at Tk10.

Sandhani Asset Management Limited will act as the asset manager of the fund. Bangladesh General Insurance Company PLC will serve as the trustee, and Commercial Bank of Ceylon PLC will act as the custodian.

Market insiders said the approval of three closed-end mutual funds at a single meeting could help channel fresh long-term funds into the capital market. Mutual funds are widely regarded by investors as relatively safer, professionally managed investment vehicles, particularly for long-term investment.

The approval of a Shariah-based fund is also expected to create new opportunities for investors seeking Islamic investment products.

The benchmark index of the Dhaka Stock Exchange (DSE) closed marginally higher yesterday as a strong rally in insurance stocks helped pull the broader market into positive territory, despite mixed performances across other sectors.

Investors showed renewed interest in both general and life insurance shares, which provided the key support to the market at a time when overall participation remained moderate.

The DSEX ended the session up by 4 points, or 0.09%, at 4,946, while the blue-chip DS30 index gained 1.37 points, or 0.07%, to settle at 1,899.

Market breadth was nearly balanced, with 159 issues advancing, 156 declining and 75 remaining unchanged, reflecting a cautious but selective trading pattern.

Turnover improved by around 10% from the previous session, rising to Tk386 crore, as investors became more active in a handful of sectors and stocks.

According to the daily market review of LankaBangla Securities, general insurance stocks dominated the trading floor, accounting for the highest share of total turnover.

This heavy concentration of trading value underscored the renewed speculative and institutional interest in the sector. Mutual funds and pharmaceutical stocks followed, although their turnover shares were far lower compared to insurance counters, LankaBangla said.

Sector-wise, general insurance posted the strongest return of the day, rising by 2.06%, while life insurance also performed well, gaining 1.15%. These gains played a decisive role in lifting the benchmark index, as several insurance stocks experienced sharp price jumps.

Non-bank financial institutions and pharmaceutical companies also ended the day in positive territory, each advancing by 0.29%, supported by selective buying in fundamentally strong names.

However, not all sectors shared the upbeat tone. Paper and printing stocks slipped by 0.65%, mutual funds fell by 0.64% and jute declined by 0.45%, as investors booked profits and remained cautious about near-term prospects in these segments.

The mixed sectoral performance highlighted the lack of a broad-based rally, with the market largely driven by insurance-led momentum.

Square Pharmaceuticals, Orion Infusion, Dominage Steel, City Bank and Fine Foods emerged as the top turnover leaders, reflecting continued investor focus on liquid and widely followed stocks.

On the gainers' board, Fareast Finance led the rally, followed by Paramount Insurance, FAS Finance, Peoples Leasing and Bangladesh Welding, many of which benefited from speculative demand.

In contrast, Beach Hatchery topped the losers' list, while BIFC, Alif Industries, International Leasing and GQ Ball Pen also posted notable declines.

The Chittagong Stock Exchange echoed the positive trend, with both of its indices closing higher, although turnover dropped sharply to Tk5.66 crore.

State-owned Sonali Bank achieved a milestone in 2025 by recording its highest-ever operating profit of Tk8,017.35 crore, representing a substantial increase of Tk2,322.80 crore over the previous year.

The figures were disclosed by the bank's managing director and chief executive officer, Md Shawkat Ali Khan, during a press briefing held at the bank's headquarters in Dhaka's Motijheel today (13 January).

Shawkat noted that the bank's operating profit in 2024 stood at Tk5,694.55 crore, and he expressed optimism that the net profit for 2025 would exceed Tk1,500 crore after necessary provisioning.

A significant highlight of the year was the bank successfully addressing its chronic capital deficit. "For a long time, capital shortfall was a major challenge for state-owned banks," the MD said. "As of this year, Sonali Bank no longer has a capital deficit. Being free from this burden is a massive achievement for us."

The bank's Capital to Risk-Weighted Assets Ratio now exceeds the minimum regulatory requirement of 10%, providing a strong foundation for future business expansion.

On asset quality, Shawkat said the bank's non-performing loan (NPL) ratio had fallen to 15.4% as of 25 December. The bank aims to reduce this to 11-12% by 2026 and bring it down to single digits within the next three years, between 2026 and 2027, he said.

The MD said that Tk745 crore has already been recovered from the top 20 defaulters, with further recovery processes ongoing. "To mitigate risk, the bank is also decentralising its loan portfolio."

Currently, 37% of total loans are concentrated in five branches; these are being gradually shifted to other branches to reduce credit concentration, he said.

Despite the record profits, the bank still has significant outstanding receivables from various government entities. Specifically, Sonali Bank is owed approximately Tk5,500 crore in LC (Letter of Credit) commissions for its role as the sole financier of the Rooppur Nuclear Power Plant project. "Recovery of these funds will further strengthen our capital base," Shawkat noted.

Reflecting on past challenges, the MD said that no major irregularities have occurred since the Hallmark scandal, attributing the current stability to strict credit appraisal and improved corporate governance.

Bangladesh's turmoil-tossed economy shows significant signs of recovery with the July-September fiscal quarter showing a liftoff from a miasma over the last couple of years, analysts say, based on latest statistics.

The economy got a boost with the gross domestic product (GDP) having grown at a rate of 4.50 per cent in the first quarter (July-September) of the current fiscal (FY) 2025-26, according to Bangladesh Bureau of Statistics (BBS) data released Tuesday.

This marks a notable improvement from the sluggish 1.81-percent growth during the same period in the previous fiscal year (FY2024-25) -- the time of a political turmoil that toppled the reigning regime.

Also, it has almost doubled over the immediate-previous quarter or Q4 of the last FY when the GDP growth was projected at 2.47 per cent,

A senior BBS official told The Financial Express that the economic growth during July 2025-September 2025 (Q1) of the current FY2026 gained momentum as the country's all three broad sectors -- agriculture, industry, and services -- performed better.

"The BBS data indicate that the nation is gradually overcoming the economic stagnation caused by the political and social transitions of the preceding year," he says.

The industrial sector boasted a big jump as the GDP expanded there at 6.97 per cent in Q1 of the current fiscal year compared to 3.59 per cent in the same period of FY2025.

Similarly, the largest job-absorbing agriculture sector also rebounded with a 2.30-percent growth in the first quarter this fiscal from a minus 0.60-percent rate in the same period last FY2025, BBS data show.

Meanwhile, another broad contributor -- services sector -- grew by 3.67 per cent rate, up from 2.96 per cent in the corresponding quarter.

The provisional estimates show a mixed performance across different sectors and subsectors of the economy -- in the wake of domestic and external adversities.

The construction sector emerged as a major driver of growth, surging to 12.41 per cent in Q1 FY2026.

This marks a "dramatic turnaround" from the 1.90-percent growth recorded in Q1 FY2025, signaling a revival in infrastructure projects and private real-estate investment.

Wholesale and retail trade grew by 4.59 per cent and the financial and insurance activities saw a modest growth of 0.55 per cent, the BBS statistics showed Tuesday.

In contrast to the overall recovery, utilities sectors like electricity, gas, and water supply faced a significant slump, contracting by 10.70 per cent. This follows a period of volatility in the energy sector besides supply-chain challenges.

Analysts say the 4.50-percent growth rate suggests that the "stuttered" economy of 2024 is regaining its footing.

They point out that the base effect -- following the extremely low growth of 1.81 per cent in 2024 -- helped boost this year's percentage, but the double-digit growth in construction indicates a genuine return of industrial activity.

The BBS has published quarterly GDP data since the 2023-24 fiscal year to provide policymakers with real-time insights into the country's economic health.

This latest report will be a key benchmark for the government as it prepares for the remainder of the fiscal year, with a focus on stabilising inflation and boosting foreign direct investment.

Bangladesh's economic growth gained momentum in the first quarter of the 2025-26 fiscal year, with point-to-point GDP growth at constant prices rising to 4.50%, up from 2.58% in the same period of the previous fiscal year.

According to provisional quarterly estimates released by the Bangladesh Bureau of Statistics (BBS) yesterday (12 January), overall GDP growth at constant prices stood at 3.72% in the 2024–25 fiscal year.

However, the BBS noted that there are some differences between the provisional annual GDP estimates for 2024-25 and the quarterly estimates. These discrepancies will be adjusted through benchmarking in line with internationally accepted methods once the final GDP figures for the fiscal year are determined.

Sector-wise data show a notable recovery in agriculture. In the first quarter of 2025-26, agricultural growth reached 2.30%, compared to negative growth of 0.60% in the same quarter of the previous year.

Growth in the industrial sector strengthened further, recording 6.97% in the first quarter of the current fiscal year, nearly double the 3.59% growth posted in the corresponding quarter of 2024-25.

The services sector also saw an upward trend, with growth rising to 3.67% in the first quarter of 2025-26 from 2.96% a year earlier. The improvement was driven by a gradual increase in domestic demand and business activity.

Bangladesh’s economy rebounded in the first quarter of the current fiscal year of 2025-26 due mainly to stronger agricultural and industrial production.

The overall output, or Gross Domestic Product (GDP), which measures the total value of goods and services produced in a given period grew by 4.50 percent in July-September, according to estimates from the Bangladesh Bureau of Statistics (BBS) released yesterday.

This rate is higher than the 2.58 percent quarterly growth a year earlier.

The industrial sector led the expansion of the economy, posting 6.97 percent growth in the first quarter of FY26. The latest industrial growth is almost double the 3.59 percent recorded during the same period last year, when production was hit hard by mass uprisings and labour unrest.

Factory floors this year were noticeably busier compared with the corresponding quarter.

Agriculture, the largest employer in the economy, expanded by 2.3 percent, recovering from losses caused by repeated floods in 2024. The services sector, the country’s second-largest employer, also grew during the first quarter.

“This is an encouraging sign,” said Prof Mustafizur Rahman, distinguished fellow at local think tank Centre for Policy Dialogue (CPD). “The growth shows signs of recovery as the difference from last year is high.”

Rahman, however, said that this improvement is based on a low growth base from last year. And the growth in the service sector is not big, while agricultural output depends on the weather.

“There is a challenge in the sustainability of the growth,” said the economist.

Although the performance in the industrial sector was strong, export-oriented industries did not do well in the second quarter of the current fiscal year, which could have a negative impact, said Rahman.

Besides, imports of machinery and raw materials for export-oriented industries have not increased despite revived imports of capital machinery. “So, we have to wait to see whether this is a full recovery of the economy or not,” he added.

Zahid Hussain, another noted economist, described the overall recovery as “modest” compared with Bangladesh’s historical growth.

He said, “In the overall growth rate, a large contribution came from the agricultural sector.” BBS data showed agricultural growth of 2.30 percent, up sharply from a negative 0.6 percent in the first quarter of the previous fiscal year.

Farming growth in the same quarter was also slight in 2023-24, at only 0.62 percent.

Last year, floods heavily affected Aus rice and Aman seedbeds, but this year production rebounded, said Hussain, a former lead economist at the World Bank’s Dhaka office.

Hussain said the sustainability of growth will depend on electricity supply and diesel availability.

According to him, while fuel imports are stable, electricity generation remains a concern. Investment remains lacklustre, and exports have slowed, adding to the challenges.

Historically, growth in the services sector ranges between 5 percent and 6 percent, higher than the current trend.

Disruptions from year-round street protests and a weak law and order situation have had a huge impact on services. High inflation has also reduced people’s purchasing power, limiting consumption of services, he added.

Headline inflation reached 8.49 percent in December, up from 8.29 percent in November and October’s 39-month low of 8.17 percent, according to BBS data.

AkijBashir Cables is introducing Bangladesh's first three-layer house wiring cable, which sets a new benchmark for insulation resistance, durability and long-term performance.

In an interview with The Business Standard, Khorshed Alam, chief operating officer of Akij Bashir Group, discusses the group's entry into Bangladesh's cable and wire market, outlining its investment rationale, growth ambitions and focus on safety, quality and local manufacturing. The interview was conducted by Abbas Uddin Noyon, chief reporter of TBS.

What motivated AkijBashir Group to enter the cable and electric wire industry at this point, and why did you choose Eminence Electric Wire & Cables Ltd for acquisition?

Bangladesh is at a stage where infrastructure development, urbanisation and industrial expansion are all accelerating simultaneously. Reliable power transmission and safe electrical connectivity have therefore become critical national needs. As a diversified industrial group, AkijBashir sees the cable and electric wire segment as strategically aligned with our long-term vision of supporting national development through essential manufacturing.

From a business-structure perspective, our building materials division already contributes more than 60% of the group's overall portfolio. Our strategic objective has been to expand this division further so that we can offer most, if not all, key construction-related products under one trusted umbrella. Entering the cable industry is a natural extension of that strategy.

In our market research, we also identified clear gaps. On one side, certain dominant players have created unhealthy market dynamics, while on the other, several suppliers struggle with consistency and reliable delivery. We felt there was room for a credible, quality-driven player with a strong commitment to standards and supply assurance. Eminence Electric Wire & Cables Ltd offered an established manufacturing base, skilled workforce, and a compliance-oriented culture, allowing us to scale quickly without compromising quality.

How do you assess the current size and future potential of Bangladesh's cable industry?

In volume terms, the cable industry is already a large market, roughly estimated at around Tk12,000 crore. The growth outlook is strong, supported by public infrastructure projects, real estate development, industrial expansion, and rising safety awareness among consumers.

We believe the industry can sustain annual growth of 10-15% over the next 10 to 15 years, barring short-term disruptions. Another important trend is the gradual replacement of substandard cables with certified, higher-quality products. There is also scope for import substitution as local manufacturers adopt better technology. With advanced production facilities and new features, we want to meet rising customer expectations and energise the market.

What are your short- and long-term strategic goals for this venture in terms of market position and branding?

In the short term, our priority is operational stability, ensuring consistent quality, reliable supply, and strong distribution across key domestic markets. We want the brand to stand for safety, reliability and value from the outset.

In the long term, our plan is to expand the product portfolio, invest in advanced manufacturing technology, and gradually explore export opportunities. Ultimately, our goal is to position AkijBashir Cables among the leading players in the national market, with a reputation comparable to top regional brands.

What level of investment has gone into acquisition and expansion, and how has it been financed?

The investment includes both the acquisition of Eminence Electric Wire & Cables Ltd and capital expenditure for modernisation, capacity expansion and quality assurance systems. While we are not disclosing exact figures at this stage, it represents a substantial long-term commitment.

The project has been primarily financed through AkijBashir Group's own funds, reflecting our strong balance sheet and confidence in the sector. We are also receiving support from our valued financial partner, Jamuna Bank.

What production capacity are you targeting initially, and how will you scale up?

Initially, we are targeting a capacity of around 300 tonnes of copper cables and 200 tonnes of aluminium cables. The facility has been designed with scalability in mind, allowing us to expand capacity in phases. In the near term, we aim to increase this to around 600 tonnes of copper and 300 tonnes of aluminium as demand grows, both domestically and potentially in export markets.

How many jobs has this venture created so far?

Employment generation is a key part of our contribution. With the launch of AkijBashir Cables and our three-layer cable technology, we have already created employment opportunities for more than 700 people across manufacturing, quality control, logistics and sales. Our nationwide distribution network also supports significant indirect employment across Bangladesh.

What distinguishes AkijBashir Cables from existing competitors?

The most important distinction is our focus on safety and quality. AkijBashir Cables is introducing Bangladesh's first three-layer house wiring cable, which sets a new benchmark for insulation resistance, durability and long-term performance. This structure significantly reduces the risk of short circuits and current leakage and can withstand temperatures of up to 105 degrees Celsius, features not commonly available in the local market.

We believe fire risk linked to electrical wiring is a serious concern. While cables are often blamed, the real issue lies in raw material purity, manufacturing standards, and proper application. We source copper from LME-approved suppliers with 99.9% purity and use high-grade PVC from authenticated sources. We are fully committed to maintaining international standards.

Can improved local manufacturing reduce dependence on imported cables for major projects?

In the initial phase, our focus is on domestic, industrial and communication cables, including underground applications as urbanisation increases. More specialised, high-technology cables required for mega projects will come in our second phase. However, our long-term vision is clearly to reduce import dependence by developing advanced local manufacturing capabilities.

Pricing is always a concern for consumers. How will you balance quality and affordability?

High-quality raw materials inevitably cost more. For example, sourcing copper from LME-approved suppliers can be 30-40% more expensive than non-certified alternatives. But this purity directly impacts safety and longevity.

That said, we are very conscious of market realities. Our pricing strategy will remain competitive and aligned with existing products, without compromising quality. We believe consumers are increasingly willing to pay a fair price for safety and reliability.

Where are your machinery and raw materials sourced from?

The factory we acquired was already well-equipped with world-class machinery sourced from Europe, Germany, China and India. For raw materials, copper will be sourced mainly from Singapore, while PVC will come from China and partly from India.

Who are your initial target customers?

Our primary focus is domestic wiring, followed by industrial and communication cables. Given AkijBashir Group's strong brand acceptance among general consumers, we see domestic cables as a natural starting point. Gradually, we will move into higher-voltage and specialised cable segments.

Foreign investors' trading activity on the Dhaka Stock Exchange (DSE) dropped sharply in 2025, with turnover falling to one of its lowest levels in recent years, reflecting cautious sentiment, year-end portfolio rebalancing and long-standing structural constraints in Bangladesh's capital market.

Data from the DSE and brokerage houses indicate that foreign turnover remained subdued throughout the year, deteriorating significantly towards the end.

Monthly foreign turnover stood at just $5 million as of 15 December, a steep decline compared to $30 million in October and $22 million in November. Earlier in the year, foreign activity showed intermittent strength, peaking at $41 million in May and $40 million in July, but those gains proved short-lived as global investors gradually reduced exposure.

December saw a pronounced sell-off in several heavyweight stocks, contributing to a sharp net decline in foreign holdings. According to the monthly shareholding report, foreign investors sold shares worth around Tk120 crore during the month, while purchases amounted to only about Tk2 crore, resulting in a significant net outflow. Most of the selling pressure was concentrated in a handful of large-cap stocks that traditionally attract foreign interest.

Summit Alliance Port experienced the largest reduction in foreign ownership, with holdings dropping by 3.68 percentage points, equivalent to roughly Tk38 crore. Grameenphone also saw foreign stakes fall by 0.07 percentage points, translating into sales of about Tk24 crore. City Bank recorded a notable decline of 0.64 percentage points, worth Tk25.22 crore, while Square Pharmaceuticals, BRAC Bank and Renata also witnessed moderate reductions in foreign shareholding.

Despite the broader trend of selling, a small number of companies recorded marginal increases in foreign stakes during December. These included Beximco Pharmaceuticals, Prime Bank, National Bank, Orion Infusion, LankaBangla Finance and Orion Pharma, although the absolute value of these increases remained modest and insufficient to offset overall outflows.

Market participants said the recent decline in foreign activity reflects a combination of stock-specific exits and routine portfolio adjustments rather than a fundamental loss of confidence in Bangladesh's equity market.

Norway's sovereign wealth fund, along with a limited number of UAE- and EU-based institutions, remains among the key foreign players active in the market, according to industry insiders.

A managing director of a leading brokerage firm said foreign investors continue to face constraints due to the limited scope for diversification. Bangladesh has a relatively small pool of investable large-cap stocks that meet the governance, liquidity and risk standards required by global institutional funds. As a result, even modest changes in allocation decisions can have an outsized impact on foreign turnover figures.

Another brokerage chief executive noted that December is traditionally a period of portfolio rebalancing, as foreign institutions prepare year-end financial statements and realign holdings in line with global asset allocation strategies. Such adjustments often lead to temporary outflows from frontier and emerging markets, particularly when investors seek to lock in profits or reduce exposure to perceived risks.

He added that foreign inflows could recover if the country's political and economic situation stabilises further in the coming months.

Analysts also pointed to structural challenges linked to global index inclusion. Many international funds track FTSE equity country benchmarks, and Bangladesh's partial exclusion from these indices continues to weigh on sustained foreign participation. The country was removed from FTSE indices following the imposition of floor prices on stock movements, which disrupted price discovery and liquidity.

Although the Bangladesh Securities and Exchange Commission has lifted most of those restrictions since early last year, floor prices remain in place for two companies, keeping them outside the FTSE universe.

Currently, total foreign investment in the DSE stands at around Tk13,000 crore, with only about 36% of listed companies having any foreign shareholding.

In its November 2025 review, MSCI made no changes to Bangladesh's market classification, while 42 DSE-listed companies remain included in the FTSE Frontier Index.

Bangladesh's current account balance deteriorated further in the first five months of the current fiscal year 2025-26, even though remittance inflows crossed $13 billion, due mainly to a widening trade deficit caused by higher imports and weak export growth.

According to the Balance of Payments (BOP) data released by the Bangladesh Bank today (13 January), the current account deficit stood at $696 million during July-November of FY26, compared to a deficit of $568 million in the same period of FY25.

Economists and central bank officials said the higher deficit reflects a sharp increase in imports, while exports failed to keep pace.

A senior Bangladesh Bank official said higher imports of crude petroleum, refined petroleum products, fertiliser and capital machinery were the main drivers of the import surge. Crude petroleum imports rose by 37%, petroleum oil imports by 14% and fertiliser imports jumped from $960 million last year to $1.73 billion this year. Capital machinery imports also increased by nearly 10%.

Bangladesh Bank data show that the trade deficit rose by 18.52% year-on-year to $9.40 billion in July-November FY26, up from $7.94 billion in the same period last year. Imports during the period increased by 6.10% to $27.60 billion, while exports grew by only 0.60% to $18.19 billion.

The current account is a key component of the BOP, capturing a country's net trade in goods and services, income from abroad and current transfers such as remittances. Analysts noted that while strong remittance inflows often cushion the current account, a large trade deficit can still push the balance into deeper negative territory.

In FY26's first five months, remittances were around $2 billion higher than in the same period last year. However, the trade deficit was roughly $1.5 billion wider than a year earlier, offsetting much of the remittance gain and worsening the current account position.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, told TBS, the deterioration was primarily driven by the trade deficit. "Imports have increased, which in itself is not bad for the economy, but exports have not grown accordingly. In fact, export growth has fallen to below 1%, which has widened the trade deficit and hit the current account," he said.

The economist added, "An increase in imports is not a bad thing for the economy; rather, it is a sign of a healthy economy. A decline in exports, however, is detrimental. Therefore, I believe it is essential to work on increasing the country's exports in the coming days."

Financial account in surplus

Despite the current account deficit, Bangladesh's financial account recorded a surplus of $1.23 billion in the first five months of FY26, a significant turnaround from a deficit of $1.01 billion in the same period last year. Economists attributed this improvement mainly to a surplus in trade credit and higher net aid inflows.

Trade credit stood at a surplus of $595 million during the period, compared to a deficit of $817 million a year earlier, while net aid inflows rose to $504 million from $269 million, marking an increase of more than 87% year-on-year.

Zahid Hussain said trade credit and net aid flows were the two key drivers behind the positive financial account. He noted that trade credit tends to turn negative when exports rise, but in the current context, weaker exports and higher deferred import payments have pushed it into surplus.

BOP remains positive

Thanks to the strong financial account surplus, Bangladesh's overall BOP recorded a surplus of $769 million in July-November FY26, compared to a deficit of $2.54 billion in the same period last year. Economists said the improvement highlights stronger external financing flows, even as pressures persist on the trade and current accounts.

However, analysts also pointed to a decline in short-term foreign borrowing by the private sector. According to economists, net repayments of short-term loans have increased as new borrowing has slowed, reflecting weak investment demand amid an economic slowdown.

Zahid Hussain said the fall in short-term borrowing does not indicate a lack of access to foreign credit, as reserves and dollar liquidity have improved and banks' credit lines have expanded. "Rather, it shows reduced demand for new loans due to sluggish private-sector investment," he said.