Foreign investors pared their exposure to Bangladesh's capital market in December, pulling out a net Tk119–120 crore, with the bulk of the sell-off concentrated in a handful of large-cap and fundamentally strong stocks such as Summit Alliance Port, Grameenphone, City Bank and Square Pharmaceuticals.

Data from the Dhaka Stock Exchange (DSE) shows that while foreign investors sold shares worth around Tk120 crore during the month, their purchases amounted to only about Tk60 lakh, resulting in a sharp net decline in foreign holdings.

Among the most notable reductions was that of Summit Alliance Port, where foreign shareholding plummeted from 3.69% in November to just 0.01% in December, resulting in a withdrawal of nearly Tk38 crore.

City Bank also saw a significant drop, with foreign ownership falling by 0.64 percentage points to 5.40%, equivalent to a reduction of more than Tk25 crore.

Grameenphone followed a similar trend, as foreign holdings declined from 0.87% to 0.80%, cutting exposure by roughly Tk24 crore.

Square Pharmaceuticals, one of the most widely held stocks among overseas investors, witnessed a decrease of Tk14 crore as foreign shareholding edged down to 14.52%.

Smaller reductions were recorded in BRAC Bank, Renata, Olympic Industries and Jamuna Oil, while marginal increases were observed in Prime Bank, LankaBangla Finance, National Bank and a few other firms.

Overall, total foreign investment in the Dhaka bourse now stands at around Tk13,000 crore. Of the roughly 360 listed companies, only about 132 currently have any foreign shareholding, underscoring the narrow base of overseas participation in the market.
Infographic: TBS
Infographic: TBS

BRAC Bank continues to top the list of companies with the highest foreign shareholding at 36.06%, followed by Olympic Industries at 32.83%, Beximco Pharmaceuticals at 27.35% and Navana Pharmaceuticals at 19.64%.

Market participants say the recent decline reflects a mix of stock-specific exits and broader portfolio rebalancing rather than a loss of confidence in Bangladesh's equity market.

According to brokerage officials, a large portion of the recorded foreign investment actually comes from expatriate Bangladeshis. They note that genuine foreign institutional investors are actively present in no more than 25 listed companies, primarily large-cap firms with relatively strong fundamentals and liquidity.

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

A managing director of a leading brokerage firm said foreign investors remain cautious due to the limited scope for diversification, as Bangladesh has a relatively small pool of investable large-cap stocks that meet the risk, governance and liquidity standards of global institutional funds.

Ahsanur Rahman, chief executive officer of BRAC EPL Stock Brokerage, pointed out that December traditionally sees portfolio adjustments, as foreign institutions prepare year-end financial statements and rebalance their holdings in line with global asset allocation strategies. Such rebalancing often leads to temporary outflows, particularly from frontier and emerging markets, as funds lock in profits or adjust exposures to manage risk.

He further said, "Some foreign investors often visit our office, and they express their interest in investing in the country's capital market. We hope that the ongoing country's tussle situation will be improved, and after that, the foreign investment may increase."

Analysts also note that many global funds track FTSE equity country benchmarks, and Bangladesh's continued partial exclusion from these indices remains a structural challenge. The country was removed from FTSE indices following the imposition of floor prices on stock movements, which constrained price discovery and liquidity.

Although the Bangladesh Securities and Exchange Commission has gradually lifted most of these restrictions since January last year, floor prices remain in place for shares of two companies, keeping them excluded from the FTSE universe.

Gold prices in Bangladesh are set to rise again, as the Bangladesh Jewellers Association (Bajus) has announced a new rate of Tk 227,856 per bhori, effective from tomorrow (January 11).

The latest revision marks a 0.46 percent increase, or Tk 1,050 per bhori, Bajus said in a statement today.

The association attributed the hike to rising prices of pure gold in the domestic market.

Businesspeople said the country’s retail gold market has remained volatile in recent months, influenced by fluctuations in global gold prices, steadily increasing costs of pure gold, and ongoing economic uncertainty.

Data from December show that retail gold prices were revised 12 times during the month, highlighting the extent of market instability.

Gold prices in Bangladesh have risen sharply over the years.

The metal first crossed Tk 50,000 per bhori in January 2018. Five years later, in July 2023, it surpassed Tk 100,000. Prices climbed to Tk 150,000 per bhori in February 2025 and later surged past the Tk 200,000 mark within the same year.

After the interim government kept bank lending rates high for about one and a half years to reduce inflation, Finance Adviser Salehuddin Ahmed acknowledged that tight monetary policy alone cannot cool soaring prices.

At a programme in Dhaka yesterday, he said inflation control also requires effective supply-side management, stronger market supervision and cooperation from both businesses and consumers.

Even so, the adviser leaned towards maintaining the current policy stance, saying that an abrupt cut in interest rates could hurt the wider economy.

Local business leaders have long pressed for lower lending rates, but Salehuddin said that the issue could not be settled through a single decision.

“Interest rates are often discussed as if simple solutions exist, but lowering rates in one area can create pressure elsewhere in the economy,” he told the publication ceremony of the Banking Almanac at the CIRDAP auditorium in the capital.

Referring to the recent fall in treasury bill yields, he said the impact would gradually feed through to the market. However, higher returns on treasury bills or savings instruments could pull deposits away from banks, posing risks to the financial system.

The former Bangladesh Bank governor said the core role of the banking sector is to bridge savings and lending. “Banks and non-bank financial institutions play this intermediary role, and any weakness in this structure negatively affects the entire economic system.”

On the Banking Almanac, Salehuddin said the publication does not offer direct investment guidance, but it is an important data source for analysing the banking sector. It contains key information including paid-up capital, authorised capital, capital ratios, provisioning, retained earnings and credit-deposit ratios.

Discussing the health of the banking sector, he said conditions were critical when he took office in August 2024. Recent data analysis, however, shows early signs of improvement in provisioning and lending at some banks -- trends also reflected in the banking Almanac.

Calling on the media, Salehuddin urged journalists not to portray Bangladesh only in negative terms, but to highlight positive developments alongside constructive criticism. He said the country has made notable progress despite many constraints.

Abdul Hai Sarker, chairman of the Bangladesh Association of Banks (BAB), said the exact reasons behind high interest rates remain unclear.

Sarker, the chairman of Dhaka Bank, said banks are receiving funds from both the Bangladesh Bank and the government, yet lending rates remain high.

Despite adequate liquidity, banks are unable to invest because of an unfavourable business climate, he said, adding that weak law and order and low business confidence are discouraging fresh investment.

Sarker said politically driven bank approvals have eroded confidence and triggered capital outflows from the banking system.

High interest rates are also hurting exports by raising production and financing costs, weakening competitiveness in global markets, according to the BAB chairman.

Hossain Zillur Rahman, acting chairman of the board of editors of the Banking Almanac and a former adviser to the caretaker government, said business and entrepreneurial confidence remains a key challenge. He said this should be understood broadly to include farmers and small producers.

Economic democracy, especially access to credit and policy support for small and medium enterprises and grassroots actors, is another critical benchmark, he added.

“While inflation and daily economic comfort have shown mixed trends, persistent gaps remain due to inefficiencies in policy execution and supply chains.”

The economist said strong economic governance depends on quality data, professionalism, better norms, continuous monitoring and effective consultation with stakeholders.

Nazma Mobarek, secretary of the Financial Institutions Division at the Ministry of Finance, said that Bangladesh depends more on the money market than the capital market, leaving banks under growing pressure.

She said the Banking Almanac should include a chapter offering recommendations and possible exits from the crisis, including the problem of rising bad loans.

Md Khairuzzaman Mozumder, secretary of the Finance Division, said the financial sector has been passing through a difficult period over the past one and a half years.

He said some challenges, including letter of credit payment problems, have eased. The true scale of bad loans has now become visible following loan classification under international standards, he added.

Bangladesh Bank Deputy Governor Nurun Nahar also spoke at the event as a special guest. Mohammed Nurul Amin, a member of the editorial board of the book, made remarks on the publication.

The ceremony marking the seventh edition of the Banking Almanac was organised by ShikkhaBichitra with support from the Bangladesh Bank.

The non-life insurance sector is gearing up for a fresh start as the Insurance Development and Regulatory Authority (IDRA) enforces a zero-commission policy, effective 1 January, suspending the licenses of individual agents, aiming to boost transparency, curb malpractice, and restore discipline across the industry.

Industry stakeholders believe that proper enforcement of the decision could help revive business growth and rebuild confidence in the sector.

Earlier, based on a proposal from the Bangladesh Insurance Association (BIA), the regulator adopted a policy to set zero per cent commission for individual agents in non-life insurance.

Although the issue of eliminating agent commissions had been discussed several times in the past, the initiative could not be finalised. This time, however, chief executives of general insurance companies have given both written and verbal assurances to the regulator, increasing optimism that the policy will be implemented effectively.

As part of the process, the IDRA had instructed all general insurance companies to submit proposals to suspend individual agent licenses. The final decision was taken after reviewing the information and recommendations submitted by the companies.

Brig Gen (retd) Md Shafique Shamim, secretary general of the Bangladesh Insurance Forum (BIF) and chief executive officer of Sena Insurance, told TBS that the move will significantly improve insurers' claims-paying capacity.

Currently, Bangladesh has 82 insurance companies, including 46 non-life insurers, of which 43 are listed on the stock market. Non-life insurers provide coverage for risks such as property, health, motor, marine, engineering, and liability, protecting individuals and businesses from financial losses arising from accidents, natural disasters, and other unforeseen events.

Monitoring mechanism in place

To support effective implementation, the Bangladesh Insurance Forum (BIF), an association of insurance company CEOs, has formed a five-member vigilance team. It will monitor compliance and report any violations of the zero-commission policy to IDRA, which will then take action in line with the Insurance Act 2010.

"Previously, out of Tk100 in business, many companies spent as much as 60% on illegal commissions, which severely weakened their ability to settle claims," Md Shafique Shamim said.

He added that with commission expenses now eliminated, company income and financial strength will increase, while operating costs will decline. "Ultimately, this will help raise insurance penetration in the country," he noted.

Shafique further said that since the agency system has now been abolished, the decision is practical and enforceable.

Why was the policy introduced

The decision was finalised at a meeting held on 25 November, attended by IDRA officials, representatives of the Bangladesh Insurance Association, and CEOs of non-life insurance companies. At the meeting, all participating CEOs pledged to operate their businesses without paying agent commissions.

For years, the regulator had been monitoring widespread irregularities involving individual agents, including excessive commissions, mis-selling of policies, misleading customers, and inflated or paper-based premium reporting.

IDRA also has evidence that some insurers concealed commission-related transactions through multiple software systems and undisclosed bank accounts.

Expected benefits and possible risks

According to IDRA, removing agent commissions will lower management costs for insurance companies and may improve profitability. Without commission-driven incentives, unnecessary policy sales are expected to decline, while premium pricing may become more realistic and affordable for customers. The practice of inflating premium income is also expected to decrease, encouraging healthier competition across the sector.

However, the policy also presents challenges.

As commissions were the primary income source for agents, many may exit the profession. The absence of agents could affect new business acquisition, while customer services such as premium collection, documentation, and claims assistance may also face disruption.

A senior executive of a non-life insurance company, speaking on condition of anonymity, told TBS, "Companies committed to ethical business will comply with the directive. But if some violate it, the entire sector will suffer."

He added that enforcement would be easier in Dhaka but significantly more difficult in smaller towns and districts.

A senior official at the Bangladesh Insurance Academy said that although the official agent commission rate was previously capped at 15%, in practice, some companies paid commissions of up to 50% through unofficial channels. "If all companies follow the new rule, their earnings will improve," he said.

He added that companies are likely to rely on Business Procurement Officers or Business Development Officers — salaried employees — to generate business instead of commission-based agents. However, he cautioned that excessively high salary structures could raise operating costs and undermine the benefits of the policy.

Brokerage gap remains a concern

Recently, former IDRA member Sultan-ul-Abedin Mollah said the zero-commission policy is not new. While it was introduced earlier under existing laws, weak enforcement led to its withdrawal. This time, IDRA is attempting a more structured rollout.

"Introducing the policy is challenging, but sustaining it will be even harder," he said, stressing the need for stronger institutional capacity, manpower, and monitoring mechanisms.

He also pointed out that countries such as India and Sri Lanka operate mainly through licensed brokerage houses rather than individual agents. In Bangladesh, however, insurance brokerage licenses have yet to be issued.

"Removing agent commissions without first introducing a brokerage system could create practical difficulties due to the lack of an alternative distribution channel," he warned.

Bidisha International Limited, a corporate director of Rangpur Dairy and Food Products Limited (RD Food), has announced plans to sell an additional 15 lakh shares at the prevailing market price through the Dhaka Stock Exchange (DSE) within the next 30 working days.

The disclosure was filed with the DSE today (7 January), indicating that the shares will be sold in the public market. Following the disclosure, its share price rose by 1.92% to reach at Tk21.20.

This follows an earlier announcement on 24 December, when Bidisha International said it would offload the same number of shares from its larger holding of 51.53 lakh shares.

That earlier sale, however, has yet to be completed, according to market disclosures. Following partial adjustments, the corporate director currently holds 36.53 lakh shares of RD Food.

The planned divestment coincides with a series of concerns raised by the company's external auditor over financial reporting practices and liquidity pressures.

In a qualified opinion, Faruk Ahmed, partner at Khan Wahab Shafique Rahman & Co, Chartered Accountants, highlighted discrepancies in deferred tax calculations.

The auditor said that RD Food applied an outdated statutory tax rate of 15% instead of the applicable 22.5% for the year, leading to an under-provision of deferred tax of approximately Tk2.63 crore. This miscalculation directly affected the company's reported earnings per share (EPS).

According to the audited financial statements, RD Food posted a net profit of Tk4.61 crore for the year, translating into an earnings per share of Tk0.61. This represented a sharp decline of roughly 40% compared to the previous year's profit of Tk7.68 crore and EPS of Tk1.01.

The company attributed the fall in earnings to rising import costs, persistent inflationary pressures and higher bank borrowing rates.

The auditor also flagged unresolved issues involving unclaimed dividends and IPO subscription refunds. An amount of Tk57.37 lakh in IPO subscription funds remained unadjusted under non-claimed general share applications, a situation the auditor said overstated the company's capital position.

In addition, discrepancies were identified in the handling of unclaimed dividends—amounts approved for distribution but not collected by shareholders within the prescribed timeframe.

Under regulatory requirements, unclaimed dividends outstanding for more than three years must be transferred to the Capital Market Stabilisation Fund (CMSF).

The auditor reported that RD Food had unclaimed dividends amounting to Tk18.89 crore. However, only Tk1.94 lakh was found in the designated bank account. While Tk4.04 lakh had been transferred to the CMSF, the remaining balance that should have been available was missing and had instead been used for operational purposes.

The interim government has given in-principle approval for the listing of profitable State-Owned Enterprises (SOEs) and multinational companies (MNCs) with government shareholdings on the capital market, marking a significant step towards enhancing market depth and restoring investor confidence.

Initially, steps will be taken to bring 10 profitable companies to the stock market. These are Karnaphuli Gas Distribution Company, Karnaphuli Fertiliser Company, North-West Power Generation Company, Paschimanchal Gas Company, Sylhet Gas Fields, Syngenta Bangladesh, Unilever Bangladesh, Synovia Pharma, Novartis (Bangladesh) and Nestlé Bangladesh.

The decision was finalised at a meeting held yesterday (7 January) at the Secretariat, chaired by Finance Adviser Salehuddin Ahmed. The finance adviser and Investment Corporation of Bangladesh (ICB) Chairman Abu Ahmed briefed journalists after the meeting.

Under the plan, several profitable state-owned enterprises will be directly listed on the capital market, while multinational companies will decide on listing subject to approval from their respective boards of directors.

"We have given our consent from the government side. The process will begin, but the multinational companies have made it clear that they cannot make a final decision without board approval," the finance adviser said.

He noted that the stock market has largely returned to compliance with regulatory frameworks, making it essential now to increase market depth and rebuild investor confidence. "That is why we are taking the initiative to offload shares of fundamentally strong government companies."

Salehuddin added that although similar discussions had taken place in the past, this time the initiative has progressed further. "The ministry has given its consent, and the concerned companies have indicated their willingness to offload shares. We have asked others to move quickly so that the process can start."

Asked whether the listings could be completed within the tenure of the current government, the finance adviser said efforts are under way but cautioned that the process was complex. "We cannot bypass the Companies Act."

'MNCs can't avoid listing'

Abu Ahmed said the decision was made in the public interest and argued that there was no justification for multinational companies avoiding listing in Bangladesh. "If Nestlé can be listed on the Bombay Stock Exchange, what is the problem in Bangladesh?" he said, adding that while Unilever's former GSK unit is listed, its core business remains unlisted, despite the company being among the top listed firms in India, Pakistan and Thailand.

The ICB chairman said multinational companies should be offered incentives or tax concessions if necessary, but warned that higher taxes could be imposed if they chose not to come to the market. "The companies have been given a clear message that people in Bangladesh want to see these good companies listed on the stock exchange."

Referring to Unilever Bangladesh, in which the government holds nearly 40% shares, he said the company was reluctant to offload even 5% of that stake. "Can't the government sell its own shares?" he added.

Amid a prolonged drought in initial public offerings (IPO), the Bangladesh Securities and Exchange Commission (BSEC), the capital market regulator, has sought stronger participation from merchant bankers in accelerating new company listings on the stock market.

In a courtesy meeting with the newly formed committee of the Bangladesh Merchant Bankers Association (BMBA), the regulator assured issue managers of all-out support in facilitating company listings, citing that the commission is now fully prepared to approve IPOs as the new rules are already in effect with several major changes.

Bangladesh's capital market has seen no new IPO approvals over the past year, as companies remained reluctant to go public amid regulatory amendments, economic headwinds and political uncertainty.

According to BSEC data, the last company to receive IPO approval was Techno Drugs on 7 March 2024, which raised Tk100 crore and began trading four months later. Since then, no new IPO has been approved.

The meeting between the regulator and issue managers was attended by BSEC Chairman Khondoker Rashed Maqsood, all commissioners, and members of the BMBA executive committee, including President Iftekhar Alam and General Secretary Sumit Poddar, according to a press release.

Maqsood said, "One of the key responsibilities of merchant bankers is issue management, underwriting, and portfolio management. With the amendment of IPO rules, the opportunities and potential for bringing quality new companies to the capital market have increased manifold."

He said the commission expects the BMBA and its member issue managers to work toward bringing good companies to the capital market. In this regard, the BSEC will always maintain a positive approach and provide all necessary support to ensure the listing of quality companies."

The BSEC chairman also emphasised the importance of enhancing the capabilities of merchant banks in capital formation, portfolio management, and corporate advisory services. He noted that improving the competence, efficiency, and ethics of merchant banks would attract greater interest and participation in the capital market from investors and all other market participants.

A member of BMBA's new committee said, "The commission assured us of all-out support to bring new companies to the capital market and break the long-standing IPO dry spell."

EBL Securities, in its yearly review, noted that the primary market remained frozen in 2025 for over 1.5 years – an unprecedented and the longest dry spell in recent times.

Cancellation of pending IPOs, delays in proposed amendments to the Public Issue Rules, and market uncertainties amid prevailing political conditions have stalled primary market operations, adding further strain to investor sentiment during an already prolonged period of market downturn, it noted.

Stocks rebounded strongly today (7 January) as renewed buying in large-cap shares pushed the Dhaka Stock Exchange's benchmark index close to the 5,000-point threshold, offsetting lingering concerns over weak financial institutions.

The DSEX rose 39 points to close at 4,992, marking a broad-based rally with most sectors ending in positive territory. The advance helped the market claw back part of its recent losses, as investors selectively accumulated fundamentally sound stocks. The blue-chip DS30 index added 17 points to finish at 1,913, driven mainly by gains in banking, telecommunications and pharmaceuticals.

Market breadth was positive, with 193 stocks advancing against 131 decliners, while 64 issues remained unchanged. Turnover inched up to Tk465 crore, suggesting cautious but gradually improving investor participation following recent volatility. Market participants said renewed interest in large-cap and dividend-paying stocks lifted overall sentiment, particularly in the banking sector, which posted the day's strongest performance. Banking shares rose an average of 1.83% on bargain hunting after recent corrections. Telecommunications advanced 0.80%, engineering stocks gained 0.56%, and food and allied companies added 0.49%.

Trading remained concentrated in a limited number of active counters. Orion Infusion led the turnover chart, followed by City Bank, Square Pharmaceuticals, Uttara Bank and Malek Spinning, reflecting strong interest in both financial and manufacturing stocks. Several loss-making companies featured prominently among the top gainers as speculative buying drove sharp price increases. Zeal Bangla Sugar surged nearly 10%, while Shyampur Sugar and Familytex also posted strong gains. Regent Textile jumped more than 8%, underscoring continued risk-taking by a segment of retail investors despite weak fundamentals.

In contrast, troubled non-bank financial institutions faced heavy selling pressure and dominated the list of top losers. International Leasing and Fareast Finance both fell by more than 10%, while FAS Finance, Premier Leasing and Prime Finance also recorded steep declines. Market insiders said confidence in these stocks remains severely eroded following recent remarks by the Bangladesh Bank governor on declaring several NBFIs non-viable.

Positive momentum was also evident at the Chittagong Stock Exchange, where both key indices closed higher. The CSCX index rose 76 points to 8,633, while the CASPI index advanced 108 points to settle at 13,975. Turnover at the port city bourse increased to Tk12.80 crore, signalling improved participation.

Bangladesh's economy might have regained pace in December, signalling a slightly faster pace of economic expansion, supported mainly by continued growth in agriculture, manufacturing and services, according to the Bangladesh Purchasing Managers' Index (PMI).

The December reading of PMI rose by 0.2 points month-on-month to 54.2 from 54 the previous month, said a press release by the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI), and the Policy Exchange Bangladesh (PEB). In October, the PMI reading was 61.8.

The PMI is a forward-looking indicator used globally to gauge economic direction. A reading above 50 indicates expansion, while a reading below 50 indicates contraction.

Agriculture posted its fourth consecutive month of expansion and at an accelerated rate, emerging as the strongest-performing sector, the release said.

"The latest PMI readings indicate a marginal expansion of the economy, driven by strong agricultural sector performance," said M Masrur Reaz, chairman and chief executive officer of PEB.

"The latest PMI readings indicate a marginal expansion of the economy, driven by strong agricultural sector performance," said M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh

The latest survey showed stronger expansion in new business, overall activity, employment and input costs. However, order backlogs continued to contract, albeit reflecting demand pressures easing only gradually.

Manufacturing remained in expansion for the 16th straight month, though the pace slowed marginally.

Positive readings were recorded across most key indicators, including new orders, new exports, factory output, input purchases, imports, input prices, employment, and supplier deliveries.

The finished goods index returned to expansion, while order backlogs showed a slower rate of contraction, indicating some improvement in demand conditions.

In contrast, the construction sector slipped back into marginal contraction after three consecutive months of growth.

The new business index contracted at a faster rate, while construction activity and employment posted slower expansion. Input costs rose at a slightly quicker pace.

Order backlogs continued to contract for the fifth consecutive month, though the rate of contraction eased.

The services sector extended its expansion streak to 15 months, with growth marginally faster than in November. Employment and input costs remained in expansion territory.

However, contraction was recorded in new business, business activity and order backlogs, pointing to softer demand conditions in parts of the sector.

Looking ahead, the future business index remained in expansion across agriculture, manufacturing, construction and services, although at slower rates in all sectors.

While manufacturing saw a second consecutive month of slowdown and construction reverted to contraction, sustained optimism persists, with growth momentum expected to continue in the post-election period, said the PEB chairman.

The MCCI and PEB began publishing the PMI in January last year. Initiated by the UK government, it covers over 500 private sector firms across agriculture, manufacturing, construction, and services.

Global oil prices fell on Wednesday and China denounced the US as a bully after President Donald Trump's administration said it had persuaded Venezuela to divert supplies from Beijing and import up to $2 billion worth of embargoed crude.

The deal was in line with Trump's stated aim of controlling the South American Opec member's vast oil reserves after deposing its leader Nicolas Maduro whom it had long cast as a drug-trafficking dictator in league with Washington's foes.

Maduro's Socialist Party allies remain in power in Venezuela, where interim President Delcy Rodriguez is treading a fine line between denouncing his "kidnapping" and kick-starting cooperation with the US under explicit threats from Trump.

TRUMP: OIL MONEY 'WILL BE CONTROLLED BY ME'

He said the US would refine and sell up to 50 million barrels of crude stuck in Venezuela under a US blockade as a first step in his plan to revive a sector long in decline despite sitting on the largest reserves in the world.

"This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!" Trump posted on Tuesday.

Crude prices fell around 1.0 percent on world markets due to anticipated increased supplies.

The deal could initially require cargoes bound for Venezuela's top buyer China to be rerouted as Caracas seeks to unload millions of barrels stranded in tankers and storage.

"The United States' brazen use of force against Venezuela and its demand for 'America First' when Venezuela disposes of its own oil resources are typical acts of bullying," Chinese foreign ministry spokesperson Mao Ning told a press conference.

"These actions seriously violate international law, gravely infringe upon Venezuela's sovereignty, and severely damage the rights of the Venezuelan people."

China, Russia and leftist allies of Venezuela have all denounced the US raid to capture Maduro at the weekend, which was Washington's biggest such intervention in Latin America since the 1989 invasion of Panama to topple Manuel Noriega.

Washington's allies are also deeply uneasy at the extraordinary precedent of seizing a foreign head-of-state, with Trump making a slew of threats of more action - from Mexico to Greenland - to further US interests.

DOZENS DIED DURING CAPTURE OF MADURO

Some details are still sketchy on just how US Special Forces swooped into Caracas by helicopter under darkness on Saturday, smashing Maduro's security cordon and seizing him at the door of a safe room, with no loss of US lives.

Venezuela has not confirmed its total losses, though the army posted a list of 23 of its dead and ally Cuba said 32 members of its military and intelligence services died. The US estimates about 75 fatalities, the Washington Post reported.

Maduro, 63, who had ruled Venezuela since the 2013 death of his predecessor and mentor Hugo Chavez, pleaded not guilty on Monday to narcotics charges in a Manhattan court where he was shackled at the ankles and wore orange and beige prison garb.

Trump appears to be calculating that it is better for stability in Venezuela to work with Maduro's senior allies for now. He is stressing revival of the oil sector with the help of US firms as the priority, not the freeing of political prisoners or a new vote for a democratic transition.

VENEZUELAN OPPOSITION KEPT WAITING

Venezuela's main anti-Maduro figure Maria Corina Machado, who left in disguise to pick up the Nobel Peace Prize in October, wants to return home where she says the opposition would easily win a free vote.

But she is also taking care not to antagonise Trump, saying she would like to personally give him the Nobel prize which he had coveted and which she dedicated to him at the time. She says she is fully on board with his aspirations to make Venezuela a major ally of the US and the energy hub of the Americas.

Banned from running in a 2024 election, Machado's ally Edmundo Gonzalez won overwhelmingly, according to the opposition, the US and various election observers.

While working with Rodriguez and other top Venezuelan officials, the US has warned they must cooperate or risk sharing Maduro's fate.

Hardline Interior Minister Diosdado Cabello, who controls security forces accused of widespread rights abuses, is under particular scrutiny, sources told Reuters.

The US is also closely watching Defense Minister Vladimir Padrino, who like Cabello is under a US drug trafficking indictment and has a multi-million-dollar bounty on his head.

Rodriguez herself is under US sanctions, with her foreign financial assets identified as potential leverage, one source briefed on US administration thinking said.

The US is also pressuring the interim Venezuelan government to expel official advisers from China, Russia, Cuba and Iran, the New York Times reported.

Japanese automakers are losing market share in Southeast Asia as Chinese rivals ramp up local production to drive electric vehicle sales in the region.

In response, Japanese car companies have been scaling back production in Thailand one after another. This could deal a blow to supply chains in the Southeast Asia region, which is home to more than 2,700 Japanese parts manufacturers.

Market share could fall below 70 percent.

At the Thailand International Motor Expo, which was held in Bangkok in November and December, Toyota Motor Corp. unveiled the latest edition of its Hilux line of pickup trucks, which recently underwent a full overhaul for the first time in a decade. In addition to improving the fuel efficiency of the diesel engine models, the company has added an EV model to the lineup. It has already begun accepting orders.

In Thailand, pickup trucks are regarded as the "national car," and the Hilux, which is mainly produced in the country, has enjoyed robust popularity there.

However, during a press conference, Noriaki Yamashita, president of Toyota Motor Thailand Co., said with a stern expression, "We want to protect our supply chains by increasing sales."

Thailand accounts for nearly 20 percent of the Southeast Asian auto market. However, the combined share of the Thai market held by nine Japanese automakers dropped to 69.8 percent for the first 10 months of 2025, 6.6 percentage points down from the same period in 2024.

These companies maintained a market share in the high 80 percent range to 90 percent throughout the 2010s, but this plunged to 77.8 percent in 2023. It is even possible that it will be below 70 percent for the entirety of 2025.

In Indonesia, which accounts for about 30 percent of the Southeast Asian auto market, Japanese automakers also saw their market share fall below 90 percent in 2024 and drop even further, to 82.9 percent, for the first 10 months of 2025.

Competition between Japanese and local automakers is intensifying in Vietnam.

The aggressive expansion of Chinese automakers, such as BYD, into Southeast Asian countries, including Thailand and Indonesia, since 2022 has been a major factor in Japanese automakers' sudden loss of ground.

By greatly bringing down the price of EVs, Chinese car companies have broken into what was once a Japanese stronghold, taking market share of over 20 percent in Thailand. Chinese automakers have also ramped up EV production at new plants in Thailand and are fiercely competing with Japanese firms even in Indonesia.

Under the pressure of this Chinese assault, Japanese automakers are scaling back their output in Thailand. Honda Motor Co. will consolidate its two finished-vehicle plants in the country into a single location in 2026 at the earliest. Mitsubishi Motor Corp. also plans to suspend production at one of three plants in 2027.

According to data analysis firm MarkLines Co., of 2,792 Japanese parts manufacturers operating in Southeast Asia, nearly half are based in Thailand. More Japanese firms operate in Southeast Asia than in China or North America, and they have leveraged strong sales networks to build robust regional supply chains.

Thailand serves as a hub from which these Japanese firms can export goods to other Southeast Asian nations. However, some subcontractors have begun finding it more difficult to maintain their local production bases as orders have decreased due to finished-vehicle plants operating at lower rates, a source from a Japanese bank said.

Japanese automakers are beginning to boost sales by expanding their lineups of hybrid vehicles, a segment where they excel. However, if Chinese automakers continue their offensive, the impact on the parts suppliers could spread further.

Paola Pampaloni, the visiting acting managing director for Asia-Pacific at the European External Action Service (EEAS), yesterday said the comprehensive partnership agreement (CPA) between Bangladesh and the EU would pave the way for deeper ties between the two partners and open up significant opportunities in trade and investment.

Pampaloni made the remarks during a courtesy call on Chief Adviser (CA) Professor Muhammad Yunus at the State Guest House Jamuna in Dhaka.

During the meeting, the two sides discussed issues concerning Bangladesh-EU relations, including negotiations on the framework agreement on the CPA, the upcoming general elections and referendum, combating illegal migration, and expanding trade and investment, according to a statement from the Chief Adviser's Office.

Pampaloni noted that the initiation of negotiations on the CPA in November 2024 came after 20 years during which there had been a general partnership agreement.

She congratulated the chief adviser for the "incredible and massive" work he has undertaken since assuming leadership of the interim government in August 2024, particularly in carrying out important reforms to which the EU, as Bangladesh's political and largest commercial partner, attaches great importance, and for ensuring peace and stability at a critical juncture for the country.

The senior EU official welcomed the progress made on the CPA between the EU and Bangladesh.

She said the pact would pave the way for deeper ties between the two partners and open up significant opportunities in trade and investment.

Yunus described the CPA as one of the most important agreements for Bangladesh and said it would "solidify" Bangladesh-EU relations.

Pampaloni said the head of the EU Election Observation Mission would arrive in Bangladesh later this week and is expected to hold a series of meetings with political leaders and relevant authorities.

Pampaloni stressed the importance of a peaceful election, saying Bangladesh-EU relations could reach new heights following a successful democratic transition, ushering in a new era of engagement between Dhaka and the world's largest economic bloc.

Lutfey Siddiqi, special envoy of the chief adviser; Lamiya Morshed, SDG coordinator and senior secretary; and Michael Miller, the European Union ambassador to Bangladesh, were also present at the meeting.

Bangladesh's treasury won't feel dollar stress even after settling import- payment obligations to the Asian Clearing Union (ACU) member- countries as gross foreign-exchange reserves are yet expected to stay over US$32 billion.

The latest payment of $1.5 billion is scheduled to be remitted to the ACU headquarters in Tehran today (Thursday), officials said Wednesday.

As per the union's existing provisions, outstanding import bills and interest thereof are to be paid by member-countries every two months.

After the payment for the November-December 2025 period, the country's gross forex reserves are estimated to stand over $32-billion mark Thursday, little down from $33.78 billion on the previous working day. The reserves stood at $33.71 billion Tuesday.

"Our forex reserves now stand at a satisfactory level, even after making the routine payment to the ACU," a senior official of Bangladesh Bank (BB) told The Financial Express (FE) in response to a query about any worry.Financial Analysis Service

The central bank has been working to build up the reserves since the recent mass uprising in 2024, according to the BB official, who cites the reasons like steady inflows against subdued outflows.

"Higher inflow of remittances along with steady growth in export earnings has helped boost the country's forex reserves," the central banker explains.

Purchase of the greenback from the commercial banks by the central bank has also contributed to the rise forex reserves recently, he adds.

The central bank of Bangladesh has so far bought $3.55 billion from banks directly since July 13 last under the prevailing free-float exchange arrangement, latest BB data show.

"Lowe import-payment obligations have also contributed to improving the country's forex-reserves situation," another BB official says, adding that the country is able to meet more than five months' import-payment bills with the existing reserves.

Bangladesh's economic health expanded at a slightly faster pace in December last year, with the Purchasing Managers' Index (PMI) rising to 54.2, up 0.2 points from November.

Data showed continued expansion in agriculture, manufacturing, and services, while the construction sector returned to marginal contraction, according to a press release issued today (7 January) by the Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB).

According to the statement, the agriculture sector grew for the fourth consecutive month, supported by higher new business, business activity, employment, and input costs, despite a faster contraction in order backlogs.

Manufacturing expanded for the 16th month, driven by growth in new orders, exports, output, input purchases, and employment. The finished goods index returned to expansion, while order backlogs contracted at a slower pace.

The construction sector, however, slipped back into marginal contraction, with new business declining faster, while growth in construction activity and employment remained limited. Order backlogs continued to shrink for the fifth consecutive month.

The services sector expanded for the 15th month, with employment and input cost indices rising, even as new business, overall activity, and order backlogs contracted.

PMI is a globally recognised economic indicator that surveys purchasing managers to track business conditions, providing timely insight into economic trends ahead of official GDP data.

"The latest PMI readings indicate a marginal expansion of the economy, driven by strong agricultural sector performance. Manufacturing sector experienced second straight month of slowdown, while the construction sector reverted to contraction," said M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh.

In terms of the future business index, slower expansion rates were recorded for all the key indexes of agriculture, manufacturing, construction, and services.

"The future business index however remained in expansion across all key sectors of the economy, suggesting sustained optimism and continued growth momentum post-elections," said Reaz.

Bangladesh's gross foreign exchange reserves have increased by nearly $1 billion in just 15 days, reaching $29.19 billion, according to the Bangladesh Bank.

The central bank's spokesperson and Executive Director Arief Hossain Khan disclosed the information to journalists today (7 January).

Under the International Monetary Fund's BPM6 accounting method, the country's gross reserves stood at $28.04 billion on December 22, 2025. This means reserves rose by about $1 billion within a fortnight.

The central bank has been boosting reserves mainly by purchasing US dollars from commercial banks through auctions.

A senior Bangladesh Bank official said the supply of dollars in the banking system has improved due to a rise in remittance inflows.

"To prevent the exchange rate from falling amid higher dollar inflows, the central bank has been buying dollars through auctions," the official added.

Bangladesh Bank data shows that, following the latest purchases, total dollar buying during the first six months of the current 2025–26 fiscal year (from July to January 6) has reached $3.54 billion.

As a result, total dollar purchases in January 2026 alone have stood at $411 million.

AkijBashir Group, one of Bangladesh's largest diversified industrial conglomerates, is set to enter the country's rapidly expanding cable manufacturing market with an initial investment exceeding Tk300 crore.

The group, which will formally begin commercial operations today with a launch event in Dhaka, will initially focus on domestic, industrial and communication cables, with plans to gradually expand into high-voltage and specialised cables in later phases. Industry insiders say the move is likely to intensify competition in a market currently valued at around Tk12,000 crore.

AkijBashir Group Chief Operating Officer Khorshed Alam told TBS, "Building materials already contribute more than 60% of our total business. Our strategic objective is to further expand this division, enabling consumers to source most construction-related products from a single, trusted brand. The decision aligns with the group's long-term strategy to strengthen its building materials portfolio."

According to company officials, the group had acquired a nearly ready cable manufacturing facility previously owned by Eminence Cable Central Well. The plant features a world-class layout and machinery sourced from China, Europe, Germany and India.

Initially, the factory will have the capacity to process around 300 tonnes of copper cables and 200 tonnes of PVC annually. The project is expected to generate employment for nearly 500 people, both directly and indirectly.

AkijBashir has also outlined plans to double production capacity within the next year, subject to market response.

According to Khorshed Alam, the group's market research revealed structural weaknesses in the existing cable industry.

"In some segments, the market shows monopolistic behaviour, leading to unhealthy competition and dissatisfaction among channel partners and consumers. In other cases, inconsistent supply due to capacity and quality issues has created uncertainty," he said. "These gaps present an opportunity for a player that can ensure consistent supply, competitive pricing and uncompromised quality."

A new net zero journey for new Akij breakaway

Bangladesh's cable demand has surged in recent years, driven by urbanisation, housing projects, industrial expansion and large infrastructure developments such as metro rail lines, tunnels and elevated expressways. Industry analysts project annual growth of 10-15% over the next decade, barring short-term economic disruptions.

Industry insiders say Bangladesh's domestic cable market has expanded from around Tk2,000 crore to Tk12,000 crore over the past decade, driven by rapid electrification and infrastructure development. More than 120 companies now operate in the sector, generating over 50,000 jobs. BRB Cable Industries Limited leads the market with over 30% share, while Bizli Cables is the second-largest producer. Other key players include BBS Cables, Paradise Cables, and Walton. Despite sufficient local capacity, imported cables continue to be widely used in government projects.

Technology and safety focus

A key differentiator of AkijBashir's cable offering will be its emphasis on safety and advanced insulation technology. The company plans to introduce three-layer insulated cables, still rare in the domestic market, designed to significantly reduce electrical fire risks.

"Most cables available locally use two-layer insulation. We are introducing three-layer insulation technology that can withstand temperatures of up to 105 degrees Celsius," Khorshed said.

"This level of safety is crucial, especially considering that a large portion of urban fires in Bangladesh are linked to electrical faults."

The company will source copper exclusively from London Metal Exchange-approved suppliers, ensuring 99.9% purity, while PVC and other raw materials will be procured from verified international sources.

"Quality begins with raw materials. We are fully committed to maintaining international standards, even if it means higher costs," Khorshed added.

Why cable quality should matter more than price

While premium raw materials raise production costs, AkijBashir says its pricing strategy will remain market-sensitive.

"We will not position our products beyond consumers' reach. Ours is a competitive market, and we intend to price our cables in line with existing products without compromising on quality," Khorshed said.

Industry experts note that price competition has often pushed some manufacturers to compromise on materials, increasing safety risks. AkijBashir's challenge will be to balance cost efficiency with its quality commitments.

AkijBashir operations span fast-moving consumer goods, logistics, and building materials. Its building materials division covering steel, tiles, sanitaryware and boards has emerged as a key growth driver.

On some days, Dolon simply stops taking her medicine. Not because her condition has improved or doctors advised her to. She stops because she is exhausted mentally, financially and emotionally.

Almost all her salary now disappears into medication and treatment. Every few months, prices rise again — quietly but relentlessly — outpacing her income and shrinking her choices.

"This is one of the reasons I don't even think about getting married," she said. "When I think about children, I feel scared. I can barely manage my own life."

However, for Saiful Islam, a thyroid cancer patient, daily medication is non-negotiable. Missing a single day once landed him in emergency care, with doctors fearing a relapse. But inflation has meant that life is shrinking inch by inch.

"I must undergo Tg, anti-Tg, serum calcium, scans, FT3 and FT4 tests every three months. Once the reports stabilised after a year, the tests became mandatory every six months. I must take three Thyronorm 50 tablets daily. Missing even one day causes complications. When I first started the medication, one strip cost Tk120. Then it became Tk180, and now it is Tk240. I have no choice but to take it," Saiful said.

"Earlier, I used to buy shirts worth Tk1,000; now I buy ones priced at Tk600. Where I once ate two kilograms of fish per week, I now eat one. This is how I am adjusting. There is no alternative," he added.

Since inflation accelerated after 2022, illness has become not just a health crisis in Bangladesh but a financial one. Families are cutting back on food, clothing, travel — even dignity — selling homes, skipping doses, and delaying treatment just to survive rising medical costs amid a broader cost-of-living squeeze.

Skipping doses, selling homes, taking loans

Bangladesh today bears one of the heaviest private healthcare burdens in the world. According to official data from the National Health Accounts, 68.5% of medical expenses were paid out of pocket in 2020, rising to around 73% in 2021. Only war-torn Afghanistan fares worse. The World Health Organization recommends a maximum of 20%.

Behind these numbers are people like Dolon and Saiful, recalibrating their lives around pills, test reports, and medical bills.

In Rajshahi, Nadim Abdullah runs a small shop that supports his father, younger sister, wife, and himself. When someone in the family falls sick, the business grinds to a halt.

"Sometimes we are supposed to take seven days' medicine, but we stretch it over three days," he said. "If I take medicine properly, the shop's cash will be gone."

Loans followed. NGO installments piled up. Eventually, Nadim sold his house.

"My wife has been suffering from gynaecological problems for four years," Nadim explained. "I can't afford proper treatment. I bring home homeopathic medicine just to give her some comfort. It doesn't work. This July, I sold my house. Over more than a decade, my inability to sustain and manage my business led me to accumulate debts of Tk5–7 lakh. I sold my house to repay them."

According to a 2022 survey by the Bangladesh Institute of Development Studies (BIDS), approximately 18% of the households face catastrophic health expenditures and more than 6.13 million people were pushed below the poverty line due to healthcare costs. Households cope by borrowing, selling assets, or simply avoiding treatment altogether.

My wife has been suffering from gynaecological complications for four years. I can't afford proper treatment. I bring home homeopathic medicine just to give her some comfort. It doesn't work. This July, I sold my house.
Nadim Abdullah, shopowner, Rajshahi

Rumana Huque, professor of Economics at the University of Dhaka and a public health specialist, believes that the crisis cannot be separated from the post-pandemic economy.

"Since Covid-19, people have been under immense pressure," she said. "Add to this the Ukraine–Russia war, the overall economic slowdown, and Bangladesh's political situation.

"What we see in labour force surveys is rising unemployment, especially among women. In this context, the macroeconomic situation is directly affecting people's ability to pay for healthcare from their own income," Rumana added.

Women's unemployment has risen the fastest, even as healthcare costs climb. For many families, women quietly absorb the shock — cutting their own needs first.

Medicines: The biggest drain

The largest share of out-of-pocket spending in Bangladesh goes to medicines. According to BIDS, 54.4% of the cost was spent on purchasing medicines, while the diagnostic cost is 27.52%, 10.31% for consultation and 7.77% for transport cost.

Rumana Huque said Bangladesh's medicine prices are unusually high compared to neighbouring countries.

"If we compare with India, Nepal or Pakistan, medicine prices in Bangladesh are relatively higher. This is often disputed by pharmacists, but comparative data shows clearly that prices here are significantly higher."

The absence of a structured referral system worsens the problem. Patients can buy many drugs over the counter without prescriptions. Self-medication rises. Costs spiral.

"People end up buying medicines on their own," Rumana explained. "That increases out-of-pocket expenditure even further."

In theory, essential medicines are free at public facilities. In reality, supplies dry up fast.

"In many upazila health complexes, medicines run out within 15 to 20 days. After that, patients must buy from their own pocket."

Shoayeb Mahmud from Manikganj knows this well. His mother's diabetes medication costs Tk3,600–4,000 a month. His father's medicines cost another Tk1,600. Their child's skin infection has already drained Tk20,000.

"We borrow from relatives for treatment," he said. "Still, we can't recover."

Doctors often prescribe medicines outside the Essential Drug List, even at public hospitals. Those drugs must be purchased privately, at market prices.

"This creates additional pressure," Rumana Huque mentioned. "Even when people go to government facilities, they still end up paying."

Urban patients face a different trap. Public hospitals are overcrowded and under-resourced, forcing people into private clinics.

"There is no prepayment mechanism, no insurance," Dr Huque said. "In urban areas, people depend heavily on private providers. That pushes costs much higher."

Even within cities, prices vary wildly between clinics. Medicines are often sold under brand names rather than generics, creating confusion and inequality.

"There is disparity between urban and rural areas," she said. "But also disparity within cities themselves."

A system stretched thin

According to the World Bank, financial hardship drops sharply when out-of-pocket spending falls below 20%. Bangladesh is nowhere near that threshold. The root problem lies in chronic underinvestment.

Bangladesh allocates around 1% of GDP to health, far below the WHO-recommended 5%. While health budgets have grown nominally, much of the money goes to salaries and routine expenses. A significant portion remains unspent due to weak implementation.

The result is a system where people with means seek treatment abroad — in India, Thailand, or Malaysia — draining foreign currency, while those without means delay care or fall into poverty.

Professor Rumana argued that the pharmaceutical industry and government both have roles to play.

"The pharmaceutical industry has an important role to play. If companies were willing to reduce their profit margins, prices could come down. Many raw materials and components for medicines are imported, and reducing import taxes on these inputs could also help lower costs. At present, the cost of doing business in Bangladesh — across industries, including pharmaceuticals — is very high," she said.

"If the government were to provide targeted incentives to pharmaceutical manufacturers — such as tax relief, support through export processing zones, or other facilities — particularly for life-saving medicines, prices could be brought down to a more affordable level. This would significantly reduce the financial burden on the public."

Until then, households will continue to absorb the shock.

Bangladeshi feed millers have imported corn from the United States for the first time in eight years, citing competitive prices, quality considerations and broader efforts to narrow the bilateral trade gap.

The shipment, carrying 57,855 tonnes of corn, arrived at Chattogram port yesterday, according to a press release from the US Embassy in Dhaka. The last such import from the US was in 2018.

Traders said US corn was priced $3 to $5 per tonne cheaper than corn from Bangladesh's usual suppliers, while meeting quality requirements.

Corn is Bangladesh's second-largest grain crop after rice in terms of acreage and production.

Even so, the country remains heavily dependent on imports to meet feed demand.

The renewed corn imports come amid broader trade engagement between the two countries. The US had earlier reduced its reciprocal tariff rate for Bangladesh to 20 percent from an initial 37 percent after Dhaka agreed to increase imports from the US to help narrow an annual trade gap exceeding $6.2 billion.

Bangladesh has also signed a memorandum of understanding to import 660,000 tonnes of US wheat, of which around 300,000 tonnes have already been received.

LONGER ROUTE BUT LOWER PRICE

According to a United States Department of Agriculture report, Bangladesh imported about 93 percent of its corn from Brazil in the 2024-25 marketing year, followed by 4 percent from Argentina and 2 percent from Pakistan.

Brazilian corn has long been preferred for its price competitiveness and yellowish colour, which feed producers believe improves the appearance of pellet feed, states the report.

Rakibur Rahman Tutul, managing director of corn importer Nahar Agro Group, said the company opted for US corn this year after finding it offered the best balance of price and quality through a bidding process.

He said Brazilian corn was priced at around $250 per tonne, while US suppliers undercut that by $3 to $4 per tonne.

Although shipping from the US takes longer, around 46 days compared with about 30 days from Brazil or Argentina, the company determined it had sufficient inventory to absorb the delay, he added.

Tutul said such decisions depend heavily on supply-chain planning, noting that longer shipping routes are avoided when stock levels are tight.

He also noted that assurances from US agricultural representatives regarding logistical and quality support helped reduce risks.

While the decision also aligned with efforts to narrow Bangladesh's trade deficit with the US, Tutul stressed that cost savings remained the primary consideration.

Sourcing strategies, he said, change from year to year depending on crop quality, regional demand and price competitiveness.

Moshiur Rahman, managing director of Paragon Group, said the company sources raw materials from multiple countries, including Brazil, Argentina and the United States, depending on prevailing prices.

A price difference of $4 to $5 per tonne can translate into savings of $400,000 to $500,000 per shipment, he said. Paragon previously sourced from the US before shifting to Brazil and Argentina when prices there fell, and has now returned to the US as prices became competitive again, he informed.

Rahman said sourcing decisions are reviewed monthly, and shipments may come from multiple origins within the same month. Regardless of supplier interest, he added, the company's priority is securing quality raw materials at the lowest possible price.

US Embassy Dhaka Agricultural Attaché Erin Covert visited the port yesterday to welcome the shipment alongside representatives of Nahar Agro Group, Paragon Group and Nourish Poultry and Hatchery Limited.

An official from United Grain Corporation, a major US grain exporter, said the company was honoured to be part of the first US corn shipment to Bangladesh in eight years and expressed optimism about supplying US grains to the country in the years ahead.

I have long believed Bangladesh has realised only a fraction of its potential. After more than three decades working across industries and engaging with government processes, one conclusion is hard to escape: fragmented governance, siloed decision-making and weak coordination among institutions are holding us back.

In 1961, South Korea created the Economic Planning Board to bring planning, budgeting, industrialisation and economic analysis under one command -- the President's office. That same year, Singapore set up the Economic Development Board to align investors, infrastructure, skills and trade around a single industrial vision. These were not exercises in expanding bureaucracy. They were coordination authorities, economic nerve centres, that helped resource-constrained nations move with clarity and discipline.

Bangladesh does not need to copy these models. But it must learn from what worked.

Today, our economy is steered by powerful bodies: the National Board of Revenue, the Bangladesh Bank, Bida, the Securities and Exchange Commission, multiple ministries and scores of regulators, each with its own mandate and priorities. They rarely operate as one system with one shared vision. As a result, tax, investment, monetary, trade and industrial decisions are often taken in isolation and then collide in the real economy.

The costs are not theoretical. Take taxation in construction materials. The NBR may hesitate to withdraw VAT and taxes on cement used for brick making to protect short-term revenue targets. Yet lower taxes could make cement bricks competitive against environmentally harmful burnt bricks, improving public health and environmental outcomes. What appears to be a revenue decision is also an industrial, environmental and health policy choice.

Economic policy is inherently interconnected. Construction alone illustrates this clearly. It links roughly 3,600 industries, from steel to microfinance. A narrow decision on steel taxes should not be judged only by immediate revenue effects. Lower input taxes can raise activity across the entire ecosystem, creating jobs and downstream tax collections that may outweigh the initial loss.

Many countries have used real estate investment-friendly frameworks to generate powerful multiplier effects. Bangladesh should assess it.

If we are serious about reaching developed economy status by 2041, we need a permanent platform where these interconnections are understood and acted upon together. What the country needs is a National Financial Strategy Cell, placed directly under the Prime Minister's Office, to function as an economic nerve centre.

This should not become another administrative layer. It must be a lean, data-driven coordination mechanism that aligns fiscal, monetary, trade, investment and industrial policy so that decisions reinforce each other. Its role should be to stress-test major proposals for cross-sector impact, flag contradictions early and present integrated options at the highest level.

Such a body should be empowered to convene regulators and relevant ministries, with credible private sector participation. The aim is not to replace existing institutions but to connect them. Private sector input matters because policy frictions often surface first on factory floors, at ports, in banks and in markets, long before they appear in official reports.

The payoff would be tangible. First, greater coherence, allowing revenue goals to be balanced with growth, jobs, competitiveness and environmental outcomes. Second, smarter incentives that support export upgrading and productivity without ad hoc distortions. Third, faster and more coordinated responses to crises, whether currency volatility, banking stress, supply disruptions or emerging global opportunities. We can no longer afford fragmented governance. When a minor fee change of just Tk 180 per truck can reportedly halt operations at Chattogram port for days, the deeper signal to investors is not the fee itself but the absence of predictability, consultation and coordination.

A tougher, faster and more complex world is approaching, but so are greater opportunities. Bangladesh has the potential and the entrepreneurial energy to seize them. What it needs now is one table where the right institutions sit together, one compass to align decisions and one mechanism that turns good intentions into coherent action.

Bangladesh's economic success under the previous political regime rested on fragile foundations, with structural weaknesses masked by headline growth. These distortions fuelled a build-up of public debt and one of the world's highest non-performing loan ratios, estimated at 35.7 percent, reflecting deep abuse in the banking sector.

As confidence eroded, foreign exchange reserves fell by nearly 40 percent between end-2022 and mid-2024, while inflation rose to a 12-year high. An artificially low interest rate cap and aggressive monetary expansion by the Bangladesh Bank intensified price pressures, with weak data transparency obscuring the scale of deterioration and contributing to political upheaval.

The interim government has made progress in stabilising the macroeconomy. Foreign exchange reserves rebounded by more than 30 percent, supported by restrictive import policies and a recovery in remittance inflows following the shift to a market-driven exchange rate. Inflation has moderated, and initial steps have been taken to address the NPL crisis. Yet the recovery remains fragile, with GDP growth slowing to 3.69 percent in FY2025 amid weak business confidence, declining equity-related foreign direct investment and lingering political uncertainty.

Political clarity has therefore emerged as a decisive factor shaping the outlook. While uncertainty surrounding the transition to an elected government has weighed on investor sentiment, the return of Tarique Rahman after a prolonged exile has reduced electoral ambiguity. His emphasis on stability and national unity has improved expectations of policy continuity, supporting a more constructive medium-term outlook, with the IMF projecting growth to rebound to 4.9 percent in 2026.

Despite these stabilisation gains, Bangladesh's capital market continues to underperform. The DSEX remains near multi-year lows, valuations are deeply compressed and foreign participation has declined sharply, even as regional peers have rallied. This underperformance is structural, driven by a prolonged IPO drought, regulatory inefficiencies, the dominance of bank financing, elevated fixed-income yields and an underdeveloped institutional investor base. These weaknesses reinforce a cycle of low liquidity and weak participation.

Bangladesh now stands at a critical juncture. Macroeconomic stabilisation, improving reserves and emerging political clarity offer a narrow but meaningful window for capital market revival. Sustained recovery, however, will depend on a coordinated reform agenda that addresses structural bottlenecks, restores institutional credibility and realigns incentives towards long-term market development.

On the fiscal front, restoring listing incentives is essential. Expanding the corporate tax differential between listed and non-listed companies to 10 to 15 percentage points would reward transparency, while tax-free dividend income could redirect household savings towards equities.

Regulatory reforms are equally important. Streamlined, digitised financial reporting and a fast-tracked IPO process would help revive the listing pipeline, while stronger corporate governance and improved stock exchange oversight would enhance market integrity and investor protection.

Institutional strengthening remains central. Enhancing the effectiveness and accountability of the BSEC, alongside revitalising the Investment Corporation of Bangladesh, would restore regulatory credibility and provide counter-cyclical market support. Progress also depends on stronger inter-agency coordination, improved financial literacy and a better balance between bank financing and capital markets through incentives for private listings and rationalised savings instrument yields.

Sustainable capital market growth ultimately depends on building a strong institutional investor base, particularly through the development of the mutual fund industry. Greater mutual fund participation would help reduce volatility by reinforcing disciplined, long-term investment practices. Yet the sector remains underdeveloped.

Achieving durable, fundamentals-driven growth will require targeted policy support, including higher tax rebates on mutual fund investments, limited tax exemptions on dividend income, larger IPO quotas and the removal of the 15 percent bank investment cap on mutual funds. If implemented consistently, these measures could reposition the Bangladesh capital market as a credible engine of long-term economic growth.

The writer is managing director and CEO of Vanguard Asset Management Limited