Nuzhat Anwar has joined as the Managing Director of Dhaka Stock Exchange (DSE) on Sunday.

Earlier, on December 18, 2025, the Bangladesh Securities and Exchange Commission (BSEC) approved her appointment as the new Managing Director of Dhaka Stock Exchange PLC.

Nuzhat Anwar brings over two decades of experience in financial markets, banking, and development finance. Prior to her appointment, she worked at the International Finance Corporation (IFC), the private sector arm of the World Bank Group, where she held multiple senior leadership roles across Africa and South Asia.

Her positions included Resident Representative for Liberia and Sierra Leone, Senior Country Officer for Bangladesh covering Bangladesh, Bhutan, and Nepal, and acting Cluster Manager during the COVID-19 pandemic and the subsequent transition period.

Anwar also served as an IFC Country Officer in Botswana and Namibia, where she played a key role in establishing IFC’s presence in Gaborone and advancing a sustainable investment program, including IFC’s first investment in Botswana.

She offers deep expertise in capital management, treasury and liquidity, transaction services, portfolio optimization, and market advocacy.

Earlier in her career, she spent 16 years with Citibank Bangladesh and Standard Chartered Bank Bangladesh in various senior management roles.

Anwar holds a Master’s degree in Commerce (Finance) from the University of Dhaka.

Gold prices in Bangladesh have climbed for the eighth consecutive time, with the price of 22-carat gold reaching a new all-time high of Tk2,29,431 per bhori (11.664 grams) on Sunday (28 December).

Bangladesh Jewellers Association (Bajus) announced that it has increased the price of gold by Tk1,575 per bhori, a decision that will take effect from Monday morning.

Bajus said the latest adjustment was made considering the overall market situation, particularly the rise in the price of pure gold (tejabi gold) in the local market.

Under the new rates, the price of 21-carat gold has been set at Tk2,18,992 per bhori, 18-carat gold at Tk1,87,732 per bhori, and traditional-method gold at Tk1,56,531 per bhori.

In addition to the selling price, buyers will have to pay a government-mandated 5% VAT and a minimum 6% making charge fixed by Bajus. However, making charges may vary depending on the design and quality of jewellery.

Bajus last revised gold prices on 27 December, when it raised the price of 22-carat gold by Tk1,574 per bhori to Tk2,27,856.

With the latest hike, Bajus has increased gold prices eight times in a row. So far this year, gold prices have been adjusted 91 times in the domestic market — raised on 64 occasions and reduced only 27 times.

Meanwhile, silver prices have remained unchanged in the local market. The price of 22-carat silver stands at Tk6,065 per bhori, while 21-carat silver is selling at Tk5,774 per bhori, 18-carat silver at Tk4,957 per bhori, and traditional-method silver at Tk3,732 per bhori.

The outgoing year proved far more challenging than usual for Bangladesh’s ready-made garments (RMG) industry, battered by political instability, labour unrest, US tariff pressures and a major airport cargo fire that destroyed an estimated $1bn worth of garment shipments.

Industry insiders said the withdrawal of export incentives, coupled with high domestic inflation, pushed up production costs and eroded competitiveness throughout 2025. Political uncertainty further weakened business confidence and disrupted normal trade flows.

More than 200 garment factories shut down over the past one and a half years, leaving over 200,000 workers unemployed. Some of those factories later reopened, restoring around 50,000 jobs, but the net impact on employment remained severe.

Entrepreneurs had hoped for a more stable business environment to rebuild confidence, generate jobs and support economic growth. Instead, export momentum slowed sharply.

Bangladesh’s exports stood at $35.89bn in 2023 and rose to $38.48bn in 2024, marking a robust 7.23% year-on-year increase. But from January to November 2025, exports reached just $35.59bn—only 2.53% higher than the same period a year earlier. By comparison, exports in January–November 2024 had grown by 6.23% over the corresponding months of 2023.

The data show that 2025 has lagged well behind last year’s pace in both full-year and 11-month comparisons. Even if December performs better, overall export growth is unlikely to match 2024 levels and any improvement is expected to be modest.

A mixed and turbulent year
Speaking to the Daily Sun, BGMEA senior vice-president Inamul Haq Khan described 2025 as a “mixed year” for RMG exporters.

Inamul Haq, also managing director of Ananta Garments Ltd, said the business community remained uneasy about law and order ahead of national elections, noting that security is critical for sustaining operations. BGMEA director Faisal Samad said the industry’s difficulties were rooted in challenges that began after 5 August and intensified between August and December 2024.

“During that period, there were not only sector-specific labour issues, but also a 9% wage increment set as a standard for subsequent years. This had a big impact,” said Faisal, who is also managing director of Surma Garments Ltd.

He added that 2025 began as a financially difficult year, made worse by US tariff pressures.

“Tariffs and the uncertainty around them complicated the situation further. Held-up orders and an overall slowdown due to tariffs affected not only exports to the US but also Europe, ultimately dragging down exports in the last quarter of 2025,” he said.

Export growth hit by multiple shocks
Bangladesh Apparel Exchange managing director Mohiuddin Rubel said a series of negative shocks shaped export performance throughout the year.

“Tariff threats and order freezes from key markets, particularly the United States, created extra pressure and uncertainty,” he said.

Rubel pointed to political instability, intensified labour unrest, road blockades and factory shutdowns that disrupted production and deliveries.

“For the first time, the country saw a complete shutdown of the customs house—an event that is rare globally. In a country where almost all export earnings come from the RMG sector, such a shutdown is extraordinary,” he said.

He also cited the airport cargo fire, which destroyed about $1bn in garment shipments, directly cutting export earnings.

At the same time, the removal of export incentives and persistent inflation raised production costs and weakened Bangladesh’s traditional price advantage.

“Together, these factors constrained export growth in 2025, keeping it well below last year’s trajectory,” Rubel said. Beyond short-term shocks, he warned of deeper structural challenges.

“Competition in Europe is intensifying, squeezing Bangladesh’s position in a core market, while weak performance in non-traditional markets highlights the risk of relying heavily on the EU and the US,” he said.

“Limited product diversification is also evident, especially when compared with competitors like Vietnam, which is moving faster into higher value addition and wider market coverage.”

Rubel, a former BGMEA director, added that recent labour law amendments aim to improve workers’ rights and align the sector with international standards, but they also raise compliance costs and operational responsibilities for factory owners, increasing the risk of disruption if poorly managed.

Recovery hopes from mid-2026
Despite the setbacks, industry leaders see signs of resilience.

“The industry has managed to sustain itself and somehow hold its position,” Faisal Samad said. “I am hopeful that from the second quarter of 2026, businesses will start to pick up again as things normalise and prices are settled by buyers.”

He said national elections and the formation of a political government in 2026 could further stabilise the country and restore confidence among international buyers.

“I hope more trade will flow into Bangladesh and help the sector expand and recover from the challenges of 2025,” he said.

Faisal offered two key policy recommendations. First, he urged a phased reduction in bank interest rates next year as inflation eases, to lower financial costs and improve competitiveness.

Second, he stressed the need for consistent power and utility supplies, calling for the urgent completion of the long-delayed FSRU project to ensure energy stability for the sector.

The reporter can be reached at: rafikhasan90@gmail.com

Gold prices are set to hit a new high as the Bangladesh Jewellers Association (Bajus) raised rates for a second consecutive day, citing higher prices in the local bullion market.

The association said the price of pure gold has increased in the local market, with the precious metal set to be sold at Tk 229,430 per bhori (11.664 grams) from tomorrow, up from Tk 227,856 per bhori.

Bajus announced tonight that gold prices would be increased by up to Tk 1,574 per bhori, or 0.69 percent.

The revised rates will come into effect across the country from tomorrow.

Gold prices surged to a record high in early Asian trading on Friday, buoyed by safe-haven demand and rising expectations of further interest rate cuts by the US Federal Reserve, reports Reuters.

Spot gold rose 0.5 percent to $4,501.44 per ounce by 0209 GMT, after touching a record peak of $4,530.60 earlier in the session.

Meanwhile, US gold futures for February delivery settled 1.9 percent higher at $4,469.40 per ounce, it said.

Locally, gold prices have been on an upward trend since December 11.

Over this period, prices have risen by 6.66 percent, or more than Tk 14,000 per bhori, repeatedly breaking previous records.

Industry insiders attribute the surge mainly to the international bullion market, the devaluation of the taka, economic uncertainty, and high inflation.

Although Bangladesh does not import significant volumes of gold, domestic prices remain closely aligned with global trends.

According to the Gold Policy 2018, annual domestic demand in Bangladesh stands between 20 and 40 tonnes.

Around 80 percent of the country's gold demand is met through smuggling, leading to substantial revenue losses for the government, said industry people.

In January 2018, gold crossed Tk 50,000 per bhori for the first time. Five years later, in July 2023, it hit Tk 100,000.

After further jumps, it reached Tk 150,000 in February 2025, and later surged past Tk 200,000 per bhori.

Oil prices settled more than 2 percent lower on Friday as investors weighed a looming global supply glut, while also keeping an eye on a potential Ukraine peace deal ahead of talks this weekend between Ukrainian President Volodymyr Zelenskiy and US President Donald Trump.

Brent crude futures settled down $1.60 or 2.57 percent to $60.64 per barrel. US West Texas Intermediate (WTI) crude settled down $1.61 or 2.76 percent to $56.74.

While supply disruptions have helped oil prices rebound in recent sessions from their near five-year low on December 16, they are on track for their steepest annual decline since 2020. Brent and WTI are down 19 percent and 21 percent respectively on the year, as rising crude output caused concerns of an oil glut heading into next year.

"Geopolitical premiums have provided near-term price support, but have not materially shifted the underlying oversupply narrative," Aegis Hedging analysts said in a note on Friday.

The global oil supply next year will exceed demand by 3.84 million barrels per day, according to figures from the Paris-based IEA's December oil market report.

While supply disruptions have helped oil prices rebound in recent sessions from their near five-year low on December 16, they are on track for their steepest annual decline since 2020. Brent and WTI are down 19 percent and 21 percent respectively on the year, as rising crude output caused concerns of an oil glut heading into next year.

"Geopolitical premiums have provided near-term price support, but have not materially shifted the underlying oversupply narrative," Aegis Hedging analysts said in a note on Friday.

The global oil supply next year will exceed demand by 3.84 million barrels per day, according to figures from the Paris-based IEA's December oil market report.

For the oil price, "the negatives remain of elevated global oil storage, and slight progress on Ukraine-Russia peace talks," said Dennis Kissler, senior vice president of trading at BOK Financial.

The White House also ordered its military forces to focus on a "quarantine" of Venezuelan oil for at least the next two months, indicating Washington is currently more interested in using economic rather than military means to pressure Caracas.

"The global impact to crude prices looks minimal at this time," Kissler said of US actions to intercept sanctioned oil tankers leaving and entering Venezuela.

Despite headline risk pertaining to Venezuela, the broader market remains focused on the growing global surplus, according to Aegis Hedging analysts.

Bangladesh Bank has stepped up purchases of US dollars from commercial banks to stabilise the foreign exchange market following a sharp rise in inward remittances this year.

Executive Director and Spokesperson Arif Hossain Khan said on Sunday that the central bank acquired $110 million from three commercial banks through a Multiple Price Auction (MPA) at an exchange rate of Tk 122.30 per dollar.

The central bank has acted to prevent significant fluctuations in the exchange rate as commercial banks face a surplus of dollars from the remittance boom.

In December alone, Bangladesh Bank has purchased $920 million, bringing total purchases in the current fiscal year, FY2025-26, to $3.05 billion.

Remittance flows by expatriate Bangladeshis have shown robust growth. Between December 1 and December 27, the country received $2.75 billion, up 14.03 percent from $1.98 billion during the same period last year.

Looking at the broader fiscal year, from July 1 to December 20, Bangladesh received $15.79 billion in remittances, compared with $13.54 billion in the same period of FY2024-25, representing roughly 16.16 percent growth. In November alone, expatriates sent $2.89 billion.

Central bank officials attribute the surge to several key factors, including strict anti-Hundi measures to curb illegal money transfers, effective implementation of remittance incentives and improved efficiency and accessibility of formal banking channels for migrants.

The sustained inflow of foreign exchange has bolstered the country’s reserves to over $32 billion, providing relief to its overall economy.

The Bangladesh Textile Mills Association (BTMA) said on Sunday that local spinners are burdened with Tk12,000 crore worth of
unsold yarn, while production costs have risen sharply.
At a press briefing at Gulshan Club, BTMA leaders urged the government to take decisive measures within 72 hours to protect the textile industry, warning that the sector is now in the “ICU”.
They cited key challenges including a sharp and unusual cut in cash export incentives in the name of LDC graduation, nearly double gas prices, taka depreciation, bank interest rates rising from 9% to as high as 16%, reduced Export Development Fund (EDF) facilities, higher wages and benefits for workers, and acute shortages of working capital.
BTMA leaders also alleged that Indian mills, backed by various government incentives, are dumping yarn in the Bangladesh market at very low prices. This, they said, has created unfair competition, severely affecting domestic spinning mills, eroding export capacity and pushing the sector towards an existential crisis.
Speaking at the programme, BTMA President Showkat Aziz Russell said the interim government has not only failed to create new factories but has also overseen closures. More than 250 garment factories and over 50 textile mills have shut down, while over half of the remaining factories are operating at half capacity.
“What success has there been over the past year? In reality, the interim government has been a complete failure,” he said.
Noting that one of his own cotton mills has closed, Russell said he feared becoming a “textile-less” president. He demanded a government decision within the next 72 hours to save the sector.

Call for 10% cash incentive
To address the crisis, Russell demanded a 10% cash incentive on both direct and indirect yarn exports. He also called for an expansion of the EDF, lower EDF interest rates, reduced bank lending rates and a grace period for loan repayments.
He claimed that yarn imports from India rose by 137% in the last fiscal year, with Indian traders selling yarn in Bangladesh at prices about 30 cents per kilogram lower.
As a result, nearly 50 spinning mills—each with investments of Tk500 crore to Tk700 crore—have shut down, making reopening difficult.
“We are becoming overly dependent on India for yarn. This poses serious future risks. If that happens, backward linkage industries will be hit first, followed by major losses in the RMG sector,” he warned.

Safeguard duty proposal
BTMA said Indian mills are exporting yarn to Bangladesh at prices lower than in their own domestic market due to incentives and policy support, harming local spinners.
It proposed the immediate imposition of a safeguard duty equivalent to 30-35 cents per kilogram on imports of 100% cotton yarn from India, both under bonded facilities and commercial channels.
BTMA also urged a rational re-determination of the value addition rate from imported cotton yarn to finished fabric. Considering cotton import lead times, it demanded a 1% interest rate on EDF loans, restoration of the $30 million per-company EDF limit, and an extension of the EDF
repayment period to 270 days.

Govt must act now
Former BTMA president Mohammad Ali Khokon said the sector has already entered the ICU and no longer has time left for gradual support. “To save this nearly $22 billion sector, the government must take bold and immediate steps,” he said.
He called on Bangladesh Bank to create a dedicated window for the textile sector and adjust interest rates accordingly. Khokon claimed that while the sector paid 12.5%-15% tax last year, the current rate has jumped to 27%, calling it “a death blow on top of death”.
“The income from yarn sales now barely covers wages and gas bills, forcing owners to shut down mills,” he said, urging reductions in bank interest rates, gas and electricity prices to protect the industry.

The Bangladesh Land Port Authority (BLPA) has approved a 5% increase in fees for cargo transport, storage, handling, and passenger services at all land ports across the country, effective from 1 January 2026.
BLPA Chairman Mohammad Manjarul Mannan signed two separate notifications confirming the authority’s right to revise tariffs with prior government approval.
The revised rates will apply to all land ports, including Bhomra, Burimari, Tamabil, Akhaura, and Sonamasjid, raising charges for vehicle entry, warehousing, handling, and ancillary services from the same date.
According to the BLPA, the 5% hike will be applied to all land ports under its jurisdiction except Benapole, based on the 2025 tariff structure.
The notification for ports other than Benapole outlines several rules and exemptions.
If discrepancies are found in import manifests, invoices, packing lists, consignment notes, or truck consignment weights, fees will be charged based on the actual weight or measurement, whichever is higher.
Dangerous and hazardous goods will be charged at double the normal rate.
In cases where clearance delays occur due to government orders or customs requirements and are properly certified, a 50% reduction on second- and third-slab charges may apply, including for goods cleared before auction.
Export cargoes will continue to receive a 10% discount on warehouse fees.
The authority will independently determine the weight or measurement of all open cargo, with a minimum charge per tonne or cubic metre. Fractional amounts below 50 paisa will be waived, while amounts of 50 paisa or more will be rounded up to one taka.
No tarpaulin fees will be charged for goods covered in open yards, although transit shed fees will apply.
No charges will be imposed for moving or rearranging goods in the port’s interest unless requested by importers or agents, in which case standard fees will apply.
All charges will be subject to 15% VAT, and unless revised, tariffs will automatically increase by 5% annually.
At Burimari land port, mechanised loading and unloading charges will be applicable only when such facilities are available, subject to approval from the Ministry of Shipping.
Benapole tariffs
Benapole land port will also implement a 5% increase based on its 2025 tariff structure, covering vehicle entry, warehouse and open-yard storage, handling, documentation, equipment usage, and passenger services.
Under the revised tariff, the entry fee for trucks, buses, and lorries has been set at Tk184.70, while private cars, jeeps, and pickups will be charged Tk110.82.
Fees for smaller vehicles, motorcycles, and vans have also been increased, along with charges for weighing, paperwork, warehouse vehicle placement, and administrative services.
Benapole will continue to allow three days of free storage, after which warehouse and yard charges will apply incrementally.
The daily warehouse fee for general goods has risen to Tk13.98 per tonne, up from Tk13.31 in 2025. Storage costs have also increased for yarn, textiles, tea, paper, leather, timber, and other commodities.
Handling charges have gone up by Tk55.76 per tonne, while equipment usage fees have also been revised upward.
At the Benapole passenger terminal, the combined entry, waiting, and service charge has increased to Tk52.27 from Tk49.79.
Business leaders and C&F agents have expressed concern that the higher fees will raise import costs and eventually push up market prices.
“The hike in port service fees will raise operational expenses for traders, leading to higher import costs that will ultimately impact consumers,” said Ziaur Rahman, secretary general of the Benapole Land Port Import-Export Association.
Calling the decision unexpected, Ejaz Uddin Tipu, joint secretary general of the Jashore Chamber of Commerce and Industry, said the increase adds pressure on businesses. “Given the current political and economic situation, the fee hike adds unexpected pressure on businesses,” he said.
The BLPA said the revision is part of the annual 5% tariff adjustment allowed under existing regulations.
Dangerous and hazardous goods will continue to be charged double rates, export cargoes will retain the 10% warehouse discount, and VAT will be applied as per government rules.

Fisheries and Livestock Adviser Farida Akhtar has emphasised that while the taste and quality of Bangladeshi shrimp enjoy global recognition, future success in international markets depends on rigorously meeting standards for health, environmentally friendly production methods, and antibiotic-free status.

The adviser made the remarks during a visit to the Faltita Fisheries Landing Centre in Fakirhat upazila of Bagerhat today (27 December), followed by a meeting with warehouse owners, according to a press release.

Farida noted that illegal import of goods from outside the country, including India, or unauthorised movement within the country, is unacceptable.

She said such practices harm government revenue, prevent fair profits for traders, and often result in goods being discarded, directly wasting national resources.

Regarding electricity, the adviser said the fisheries sector still does not receive the subsidised facilities available to the agricultural sector. However, she noted that efforts have been underway for the past year and expressed optimism that around 20% of electricity support could be ensured soon through coordination among the relevant ministries.

Responding to a question, she said the government would take a strict stance against those involved in the shooting of Inqilab Mancho spokesperson Sharif Osman Hadi during the election. She added that alongside law enforcement agencies, the general public must act responsibly to reduce security risks, noting the government was making all possible preparations to ensure the upcoming elections are held in a fair and safe manner.

Referring to the fisheries sector, the adviser said Bangladesh has yet to fully realise its potential due to systemic shortcomings. As legal restrictions exist on collecting fish fry from natural sources, she said the number of hatcheries must be increased to boost fry production.

She also said the shrimp export sector has lagged due to policy errors of the previous government, adding that effective measures would be taken promptly to address existing export disparities.

Credit card use in Bangladesh recorded a sharp rise in October, with both domestic transactions and spending by Bangladeshis overseas increasing significantly compared to the previous month, says the Bangladesh Bank.

According to the central bank's latest report, transactions within the country, expenditures by Bangladeshis travelling overseas and spending by foreigners within Bangladesh all showed an uptrend.

Data reveals that Bangladeshis spent Tk534.02 crore using credit cards abroad in October, up from Tk494.02 crore in September. This marks a significant increase of approximately Tk40 crore within a single month.

The United States remained on top in credit card expenditures by Bangladeshis.

A breakdown of the top countries includes – USA Tk72.06 crore, Thailand Tk56.03 crore, UK Tk52.02 crore, Singapore Tk45.02 crore, India Tk32.06 crore and Saudi Arabia Tk31 crore. Other notable spending was recorded in Malaysia, the Netherlands, Canada, the UAE, China and Australia.

There was also a boost in credit card usage by foreign nationals visiting or residing in Bangladesh.

In September, they spent Tk175.09 crore via credit cards, which rose to Tk199.07 crore in October – an increase of roughly Tk24 crore.

The US citizens topped the list of foreign spenders in Bangladesh, accounting for Tk44.02 crore in October. They were followed by citizens of the United Kingdom Tk21 crore and India Tk18 crore.

The domestic credit card market also showed robust growth.

Transactions within the country rose from Tk3,395 crore in September to Tk3,471 crore in October. This reflects an increase of Tk76 crore in domestic consumer spending via credit cards in just 30 days.

Financial analysts and the Bangladesh Bank report suggest that this upward trend is a strong indicator of increasing consumer confidence and heightened dynamism in both local and international financial transactions.

The rise in overseas spending specifically points towards a recovery in international travel and global commerce participation by Bangladeshi cardholders, said the report.

Gold surged past $4,500-an-ounce for the first time on Wednesday, while silver and platinum also hit record highs, as investors piled into precious metals to hedge against geopolitical and trade risks, and on expectations of further US rate cuts in 2026.

Spot gold rose 0.2% to $4,495.39 per ounce by 0552 GMT, after touching a record high of $4,525.19 earlier in the session. US gold futures for February delivery climbed 0.4% to a record high of $4,522.10.

Silver gained 1.1% to $72.16 an ounce, after hitting an all-time peak of $72.70 earlier, while platinum jumped 2.5% to $2,333.80 after peaking at $2,377.50.

Palladium climbed almost 3% to $1,916.69, its highest level in three years.

"Precious metals have become more of a speculative narrative around the idea that, with de-globalisation, you need an asset that can act as a neutral go-between, without sovereign risk particularly as tensions between the US and China persist," said Ilya Spivak, head of global macro at Tastylive.

Thin year-end liquidity exaggerated recent price moves but the broader theme was likely to endure, with gold targeting $5,000 over the next six to 12 months and silver potentially pushing toward $80 as markets respond to key psychological levels, Spivak added.

Gold has surged more than 70% this year, its biggest annual gain since 1979, driven by safe-haven demand, expectations of US rate cuts, robust central-bank buying, de-dollarisation trends and ETF inflows, with traders pricing in two rate cuts next year.

Silver has jumped more than 150% over the same period, outpacing gold on strong investment demand, its inclusion on the US critical minerals list and momentum buying.

Gold and silver have "been hitting the accelerator pedal this week" with fresh record highs, reflecting their appeal as stores of value amid expectations of lower US rates and lingering global debt, said Tim Waterer, chief market analyst at KCM Trade.

Platinum and palladium, primarily used in automotive catalytic converters to reduce emissions, have surged this year on tight mine supply, tariff uncertainty, and a rotation from gold investment demand, with platinum up about 160% and palladium gaining more than 100% year-to-date.

"What we're seeing in platinum and palladium is largely catch-up," Spivak said, adding that the thin nature of those markets leave them vulnerable to sharp swings, even as they broadly track gold, once liquidity returns.

Rahim Textile Mills PLC, a component of the New Asia Group, has captured significant market attention after its shares surged by 26.29% in just five trading days, attracting investor focus despite an otherwise bearish market.

According to Dhaka Stock Exchange (DSE) data, the company's share price dramatically climbed from Tk183.7 on 15 December to Tk232 within five days, before closing the week at Tk 229.6. This sharp rally also earned Rahim Textile a spot on the DSE's top ten gainers list last week.

Market insiders suggest that this sharp rise may be part of a gradual market manipulation cycle. In such patterns, the price of one company's shares is increased in a given week while others remain unaffected, making it easier for manipulators to avoid regulatory scrutiny.

As a low-paid-up company, Rahim Textile allows manipulators to generate artificial demand and quickly absorb shares with relatively little capital. Such practices are reportedly common, especially in a bearish market where regulators have not taken strong action against small-scale manipulations.

Financial performance

In the July-September quarter, Rahim Textile reported revenue of Tk25.73 crore, down from Tk27.50 crore in the same period last year. Despite lower revenue, net profit rose to Tk1.21 crore, compared to Tk20 lakh last year, due to reduced administrative and selling expenses and lower current tax liabilities. Earnings per share (EPS) increased to Tk1.28, up from Tk0.22 in the previous year.

The combination of rising share prices, improving profitability, and suspected manipulation has put Rahim Textile under the close watch of both investors and regulators.

Capacity expansion plan

In May 2024, the company announced plans to expand its production capacity, projecting a 24% increase in annual revenue. For machinery, civil construction, local expenses, and contingency works, Rahim Textile invested Tk13.73 crore.

Once the new machinery is installed, annual production capacity is expected to rise to 19.44 lakh yards of seamless dyed fabric, 31.50 lakh cones of sewing thread, 45 lakh draw cords, 252 lakh yards of elastic, 45 lakh yards of twill tape, 7.20 lakh yards of jacquard tape and 300 lakh pieces of heat seal products.

The expansion is expected to boost sales revenue by around 24% and improve profitability. The new machinery will allow Rahim Textile to sell products at higher prices while maintaining better margins.

The capital market showed signs of recovery last week, shaking off the pessimism that dominated earlier sessions, as bargain hunters moved in on oversold stocks. Investor expectations of greater clarity surrounding the upcoming national election helped revive selective buying interest, lending support to the market.

Despite the rebound, trading remained volatile throughout the week. Risk-averse investors continued to trim equity exposure amid shifting political signals and the absence of strong market-moving catalysts, keeping overall confidence fragile.

Nevertheless, selective accumulation by optimistic investors in beaten-down scrips provided enough momentum for the broad market index to close the week slightly higher. Market analysts say clearer political direction and supportive policy signals could play a key role in restoring stronger investor confidence in the weeks ahead.

By the end of the week, the benchmark index DSEX gained 52 points to close at 4,884. The blue-chip DS30 rose 23 points to 1,883, while the Shariah-based DSES advanced 8 points to 1,009. However, The DSE SME Index (DSMEX) shed 8 points to close at 851.

Market insiders said the market is currently going through a prolonged negative trend, which has led to significant price erosion across many stocks. As a result, shares of several fundamentally strong companies have become undervalued, creating attractive entry points for long-term investors.

In this environment, cautious investors are gradually shifting their investments toward these fundamentally sound but beaten-down stocks, hoping to benefit from a potential turnaround.

They also noted that following the announcement of the election schedule, positive political activities and conciliatory signals from major political parties have had a reassuring effect on investor sentiment. This improving political outlook is beginning to ease uncertainty, which could help restore confidence in the capital market. If this momentum continues, market participants believe a more positive vibe may emerge in the capital market in the coming days.

According to market analysts, political uncertainty remains the most crucial issue influencing the stock market. As this uncertainty gradually eases, the market is expected to move in a more positive direction. Due to the current uncertainty, institutional investors and large individual investors have largely stayed away from active participation, keeping trading volume below its potential level.

In its weekly market review, EBL Securities noted that the capital bourse regained its recovery momentum following last week's pessimism, as bargain hunters seized opportunities in oversold scrips amid investor anticipation of perceived clarity surrounding the upcoming national election.

Although the market witnessed some volatility as risk averse investors opted to pare exposure to equity investments since shifting political cues and the absence of meaningful catalysts kept investor confidence mostly subdued, selective accumulation by optimistic investors across beaten-down scrips allowed the broad index to close the week with a modest recovery despite lingering cautious market sentiment, according to the commentary.

Investors were most active in the Textile sector, which accounted for 17.9% of trading activity, followed by the Food sector at 11.7% and the Engineering sector at 10.7%.

Most sectors recorded positive returns during the period. The Services sector was the top performer, gaining 4.3%, while the Ceramic sector was the only major loser, declining by 0.8%.

The prolonged volatility and persistent confidence crisis in the country's capital market have pushed a significant number of investors to step away from equities, resulting in the emptying of thousands of beneficiary owner (BO) accounts this year.

Data from the Central Depository Bangladesh Limited (CDBL) show that at least 66,514 BO accounts were emptied of shareholdings in 2025, underscoring the depth of investor disenchantment amid falling indices, shrinking market capitalisation and ongoing economic uncertainty.

As of 24 December, the total number of BO accounts stood at 16.39 lakh, marking a decline of 42,789 compared to December 2024. The fall has been visible across all categories of investors.

Male BO accounts, which make up the bulk of market participation, declined by 27,884 to 12.33 lakh. Female accounts dropped by 15,024 to 3.88 lakh, while non-resident BO accounts fell by 3,144 to 43,547.

Market insiders say the broad-based decline indicates that the exodus is not limited to a specific group but reflects a wider loss of confidence in the stock market.

More telling than the fall in total BO accounts is the sharp change in their usage.

According to CDBL data, the number of BO accounts holding shares stood at 12.05 lakh as of 24 December. At the same time, BO accounts with zero balance increased by 23,538 to 3.67 lakh. This means a substantial portion of investors have chosen to keep their accounts active only on paper, without any exposure to equities.

CDBL data further show that none of the 16.39 lakh active BO accounts currently hold shares in all cases. Shares are concentrated mainly in just over 12 lakh accounts, while the remaining 3.67 lakh active accounts hold no securities at all.

In addition, more than 67,000 BO accounts have reportedly remained unused after being opened. Market participants say this reflects a pattern where many investors enter the market during bullish phases but withdraw entirely after suffering losses.

A clearer picture of investor behaviour emerges from data compiled by the Bangladesh Securities and Exchange Commission (BSEC). As of the end of last July, there were 8.31 lakh BO accounts holding shares worth less than Tk1 lakh in market value. Another 2.85 lakh accounts had investments ranging from Tk1 lakh to a maximum of Tk10 lakh. Only 80,608 accounts held investments above Tk10 lakh but not exceeding Tk50 lakh, while just 24,225 individual and institutional BO accounts had investments above that level.

Most large portfolios belong to entrepreneurs, directors of listed companies, institutional investors or foreign investors.

Historical data suggest that the withdrawal is most pronounced among small investors. In November 2021, there were 27,030 accounts with investments exceeding Tk50 lakh, 2.51 lakh accounts with investments between Tk10 lakh and Tk50 lakh, and more than 17.37 lakh accounts with investments below that threshold. Comparisons over time indicate that small retail investors are leaving the market at a faster pace than larger or institutional players.

Officials at several brokerage houses say that although the number of BO accounts with shares stands at around 12 lakh, the number of genuinely active investors is far lower. By their estimates, the number of investors who trade or invest regularly may not exceed four to five lakh.

This contrasts sharply with other savings instruments in the country, where around five crore people invest in savings certificates and between 1.5 and 2 crore people hold fixed or term deposits in banks. The comparison underscores the limited appeal of the stock market as a long-term savings avenue for the general public.

Market performance this year has done little to inspire confidence. The Dhaka Stock Exchange's benchmark index, DSEX, has fallen by 333 points to 4,883, while the blue-chip DS30 index has plunged 57 points to 1,882.

The DSEX had peaked at 5,631 points on 2 September, but persistent selling pressure has erased those gains. Market capitalisation has also declined significantly, dropping from a peak of Tk7.31 lakh crore to Tk6.76 lakh crore.

Investors and analysts cite several factors behind the downturn, including a lack of new initial public offerings, investors losing their investments due to bank mergers, overall market volatility and broader economic challenges.

A managing director of a brokerage firm said that investors naturally gravitate towards markets where returns are attractive and risks are manageable.

"People invest where the profit is high. They do not go where profit is low or where they fear losing capital," he said, adding that Bangladesh's stock market has failed to provide investors with a sense of security about returns.

He also noted that following the end of the previous misrule, there was hope that significant changes would take place under the current government. "Instead, investors observed the opposite in the stock market. People lost money and moved away even more. Those who could have come to invest are now staying away after seeing the disappointment of existing investors," he said.

On regulatory reforms, he acknowledged that while initiatives are underway, their benefits may only be felt in the long run. "Those for whom the changes are being made cannot be assured whether these changes will be of any use to them," he said, stressing the need to better communicate the purpose and expected outcomes of reforms.

According to him, the regulator's role is not to bring investors into the market directly but to ensure a fair and transparent investment environment.

Regulatory initiatives so far include the finalisation of rules for mutual funds and margin loans, as well as a reduction in BO account maintenance fees. However, public issue rules, including those governing initial public offerings, are yet to be finalised.

Market participants argue that without a steady pipeline of quality IPOs and visible improvements in governance and enforcement, restoring investor confidence will remain a formidable challenge.

Bangladesh has massively increased soybean imports from the United States over the past four months, thanks to attractive prices and private sector efforts to narrow the trade gap with Washington.

Between September and the first week of December, the country imported 754,681 tonnes of American soybeans, a rise of 310 percent compared with the same period last year, according to the US Soybean Export Council (USSEC).

The increase occurred during the first 11 weeks of the new marketing year, which runs from September to August.

The price advantage followed a temporary halt in American soybean purchases by China earlier this year, in protest against higher reciprocal tariffs on Chinese goods.

The pause left US farmers with surplus stock and depressed prices. By the time Beijing resumed buying in October under a new trade agreement, Bangladeshi importers had already seized the opportunity.

Bangladesh's private sector has also stepped up imports of US cotton, wheat and liquefied natural gas under commitments to reduce the bilateral trade gap.

Following intense negotiations, the Trump administration in August cut reciprocal tariffs on Bangladeshi goods to 20 percent from 37 percent imposed in April 2025.

The US-Bangladesh trade relationship has grown considerably over recent decades, although the balance remains heavily in Dhaka's favour. In 2024, US exports to Bangladesh totalled $2.3 billion, while imports from Bangladesh reached $8.4 billion.

Jim Sutter, chief executive of USSEC, said in November that US soybeans and soybean meal are the largest American agricultural exports to Bangladesh.

He added that Bangladesh's leading soy-processing firms and meal importers recently signed a Letter of Intent worth $1.25 billion to purchase US soybeans and soybean meal over the coming year.

Sutter described the agreement as "a landmark" that highlights sustainability and supply chain resilience.

"Participants are collaborating with USSEC to advance sourcing standards, technical engagement, and growth of the protein-feed ecosystem in Bangladesh," he said.

Bangladesh produces only about 7 percent of its annual soybean demand, relying on imports for the remainder.

Sutter said the country now has a large and modern crushing industry that supplies most of its soybean meal and oil needs. Bangladesh maintains a zero percent import tariff on soybeans and soybean meal, providing a stable trade environment.

In the 2023-24 marketing year, the US accounted for 32 percent of Bangladesh's soybean imports and 3 percent of its soybean meal imports. Industry leaders expect these shares to rise sharply under recent agreements.

Md Taslim Shahriar, deputy general manager of Meghna Group of Industries, said Bangladesh has reduced soybean imports from Brazil over the past six to seven months in favour of US supplies.

He said American soybeans are currently priced at $485-$490 per tonne, about $10 cheaper than Brazilian beans, although transport costs are $15 higher.

Amirul Haque, managing director of Delta Agrofood, one of the country's largest crushers, said competitive pricing is the main driver of the shift.

He added that the private sector is committed to reducing the trade gap with the US.

"We want policy support from the government so we can contribute more to the nation," Haque said. "We are trying to reduce the trade gap further so that our trade with America keeps growing."

The World Bank (WB) has approved an additional $150.75 million in financing to help Bangladesh scale up employment opportunities and improve incomes for low-income youth and microentrepreneurs, with a special focus on women and communities vulnerable to climate change.

The funding will support the Recovery and Advancement of Informal Sector Employment (RAISE) Project, extending benefits to around 1.76 lakh additional young people nationwide, on top of the 2.33 lakh beneficiaries already covered, according to a WB press release issued on December 18.

The expanded programme will provide a range of services, including skills training, apprenticeships, entrepreneurship development, and access to microfinance.

Besides, new initiatives will promote women's empowerment through access to quality childcare and climate-resilient livelihood options, helping communities adapt to environmental shocks, stated the press release.

The additional financing will also allow the project to reach rural areas, pilot home-based childcare services with training and start-up grants for women, and strengthen job intermediation through fairs, employer linkages, and support in contract negotiations, it added.

With this latest support, total World Bank financing for the RAISE project has reached $350.75 million, aiming to create wider employment opportunities and strengthen small business growth across Bangladesh.

Bangladesh Bank has completed the merger of five Shariah-based banks by reducing their paid-up capital to zero, a move that has effectively wiped out the entire shareholding of investors and left thousands of small shareholders with no compensation.

Under a Capital Reduction Order issued by the central bank's Bank Resolution Department (BRD), all paid-up capital of the five Islamic banks has been written down and their issued shares fully cancelled.

As a result, shareholders have lost all ownership rights, including voting power, dividend entitlement and the ability to pursue any legal claims.

According to the order, the capital reduction took immediate effect from 5 November 2025. Citing Section 33(2) of the Bank Resolution Ordinance, 2025, Bangladesh Bank said no approval or consent was required from shareholders, creditors, regulators, stock exchanges or any other parties, allowing the decision to be enforced without external clearance.

The order also instructed the appointed administrators to record the capital reduction and share cancellation in all statutory and legal documents.

Relevant filings and notifications are to be made with the Registrar of Joint Stock Companies and Firms (RJSC), the Bangladesh Securities and Exchange Commission (BSEC), Central Depository Bangladesh Limited (CDBL), and the Dhaka and Chattogram stock exchanges.

According to stock exchange data, the combined paid-up capital of the five banks stood at Tk5,820 crore, with a total of 582 crore shares outstanding. Their combined market capitalisation was Tk1,329 crore.

Individually, paid-up capital amounted to Tk1,447.56 crore for Exim Bank, Tk1,208.14 crore for First Security Islami Bank, Tk987.44 crore for Global Islami Bank, Tk1,140.16 crore for Social Islami Bank and Tk1,036.28 crore for Union Bank.

As of 31 October, First Security Islami Bank had the highest public exposure, with 65.05% of its shares held by general investors, while sponsors and directors owned just 5.90%.

In contrast, institutional investors dominated Social Islami Bank, holding 68.54% of shares, compared to 18.97% held by the public.

Union Bank had a majority sponsor holding of 54.49%. Global Islami Bank's ownership was led by institutions at 53.37%, with no foreign investment, while Exim Bank's shareholding structure was relatively balanced, with sponsors owning 32.44% and the public holding 39.31%.

Capital market insiders said small investors had already endured years of losses and were now left completely empty-handed. They pointed out that most affected shareholders had no role in bank management, loan defaults or fund misappropriation, yet had invested in licensed and regulated banks on the assumption of minimum protection.

The risks associated with these banks, they said, had never been clearly communicated to the public.

Market experts described the move as unprecedented in Bangladesh's banking sector, warning that the complete write-down of paid-up capital could further undermine confidence in the stock market, particularly among long-term retail investors who now have no recourse or compensation.

Meanwhile, the newly formed Sammilito Islami Bank PLC has begun operations following the merger of the five banks. Bangladesh Bank granted the final licence to the new entity, which started full banking operations on 2 December 2025.

It has become the largest state-owned Islamic bank in the country, with a stated mandate to protect depositors and restore financial stability.

The merger decision was finalised at a special board meeting of Bangladesh Bank on 30 November, chaired by Governor Ahsan H Mansur. The central bank formally handed over the licence on 1 December.

Sammilito Islami Bank has a paid-up capital of Tk35,000 crore, including Tk20,000 crore from the government and Tk15,000 crore to be raised through the conversion of deposits into shares. Its authorised capital has been set at Tk40,000 crore.

Mohammad Ayub Miah has been appointed chairman, and the bank's head office is located at Sena Kalyan Bhaban in Motijheel, Dhaka. Other board members include Hafiz Ahmed Chowdhury, M Saifullah Panna, Md Kamal Uddin, Md Shahriar Kader Siddiky, Md Rashedul Amin, and Sheikh Farid.

Under current capital market rules, companies usually apply to the BSEC for delisting by buying back free-float shares based on a valuation. A recent example is Beximco Synthetic, which delisted by repurchasing its free-float shares at Tk10 each.

However, market participants said it remains unclear whether such a model is feasible for the merged banks, given their financial condition.

The Asian Development Bank (ADB) and the government of Bangladesh on December 22 signed loan agreements worth $688 million to upgrade the 35-kilometre railway line from Chattogram to Dohazari, aiming to strengthen rail connectivity along the country's key southern corridor.

The financing will support the South Asia Subregional Economic Cooperation-Chattogram-Dohazari Railway Project, which also includes the construction of a 2.5-kilometre railway bypass.

Once completed, the bypass will allow direct train services from Dhaka to Cox's Bazar without stopping at Chattogram station, improving travel time and operational efficiency.

According to a press release, the project seeks to establish seamless connectivity along the Dhaka-Chattogram-Cox's Bazar corridor, a critical route for passenger and freight movement, thereby boosting regional transport efficiency and economic growth.

The agreements were signed at a ceremony held at the Economic Relations Division (ERD) office in Dhaka by ERD Secretary Md Shahriar Kader Siddiky and ADB Country Director for Bangladesh Hoe Yun Jeong.

ADB officials said the project would enhance the resilience, reliability and efficiency of rail services between Dhaka and Cox's Bazar, supporting a shift from road to rail transport.

The improved connectivity is expected to stimulate economic activities along the corridor, with particular benefits for tourism and fisheries in the Cox's Bazar region.

As part of the Trans-Asia Railway network, the Dhaka-Chattogram-Cox's Bazar corridor currently carries around 32 percent of passenger traffic and 55 percent of freight traffic, highlighting its strategic importance for national and regional economic integration.

Key project components include track elevation, improved drainage systems, modern signalling, dual-gauging of tracks and the procurement of 30 energy-efficient locomotives to reduce fuel consumption and emissions.

The project will also strengthen Bangladesh Railway's operational capacity through staff training and upgrade three stations with inclusive, user-friendly facilities and space for private sector commercial activities.

Despite 25 years of foreign loans for local governance and capacity-building projects, Bangladesh has seen limited gains while debt burdens and dependence on external financing have increased manyfold, according to an assessment by the Economic Relations Division (ERD).

In a recent meeting, ERD officials flagged problems with projects under the Local Government Division (LGD) and objected to initiating or continuing them in phases, citing high interest rates and the ineffective outcomes of past initiatives.

For example, the Tk1,151.5 crore Jica-funded Upazila Governance and Development Project (UGDP-I) had a concessional interest rate of 0.01%, whereas the proposed Tk2,310 crore UGDP-II, if undertaken, will carry a much higher rate of 2.35%.

Officials also pointed to the World Bank-backed Recovery and Advancement of Informal Sector Employment (RAISE) project involving Tk2,440 crore, which failed to generate employment, providing only one-time handouts to some people, according to meeting minutes seen by TBS.

The meeting was held on 11 December at the ERD conference room in Sher-e-Bangla Nagar, Dhaka, marking the second fact-finding mission kickoff for the proposed Jica-funded UGDP-II, where ERD strongly objected to taking new foreign loans for the project's second phase.

The session was chaired by ERD Additional Secretary and America–Japan Wing Chief Mohammad Mizanur Rahman, with the Jica delegation led by Fujii Teruaki.

During the meeting, the ERD said multiple donor-funded projects under the Local Government Division (LGD) – including three phases of the WB-financed Local Governance Support Project (LGSP), the UNDP-supported Union Parishad Governance Project (UPGP), and the Jica-funded Upazila Governance and Development Project (UGDP-I) – have fallen short of delivering structural or sustainable reforms.

Large portions of loan funds were spent on consultants, workshops, seminars, and training activities, while tangible administrative reform and durable capacity-building at the local level remained limited, ERD officials said, noting that similar objectives could have been achieved more efficiently through domestic financing and policy reforms rather than foreign borrowing.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, told TBS, "Spending on capacity building or local governance does not produce direct financial returns. When such spending is financed through foreign loans, the risk increases significantly because the liability is in foreign currency."

"Without a clear answer to whether a project will increase foreign exchange inflows or reduce outflows, taking foreign loans cannot be justified," he added.

The ERD concluded that due to policy gaps, many projects suitable for domestic financing are instead being implemented with foreign loans. This trend, it warned, is making external debt increasingly costly and heightening future repayment risks – posing a growing concern for the country's financial stability.

Why is ERD against UGDP-II

According to ERD officials, UGDP-I involved Jica loans of Tk1,151.5 crore, while the proposed UGDP-II seeks $188.67 million (around Tk2,310 crore) at a sharply higher interest rate of 2.35%, compared with UGDP-I's concessional 0.01%.

The ERD considers such high-interest borrowing unjustifiable for governance and capacity-building projects that do not generate direct financial returns.

Jica stated that UGDP-II builds on lessons from UGDP-I (2015–2025) and aims to institutionalise performance-based grants for upazila parishads and strengthen the capacity of elected representatives and officials.

However, the ERD questioned the project's economic basis.

Quoting the meeting chair, official minutes noted: "Countries that succeeded at the early stages of development did not rely on loans for governance reform. Continued dependence on foreign borrowing will prevent the Local Government Division from building its own sustainable systems and governance structures."

The ERD also argued that the need for a second phase after a decade of UGDP-I casts doubt on the first project's effectiveness. Consequently, the ERD has instructed the Local Government Division to submit a consolidated evaluation of some projects – LGSP, UPGP, ELAG, and UGDP-I, and advised exploring government funding rather than foreign loans for UGDP-II.

WB-backed RAISE project under scrutiny

Similar concerns have been raised regarding the World Bank–funded Recovery and Advancement of Informal Sector Employment (RAISE) project. The ERD believes the project has failed to deliver sustainable employment outcomes, despite providing one-time incentives of Tk13,500 to migrant workers who returned home due to the Covid-19 pandemic.

Beneficiaries say the assistance was too small to create income-generating activities. Anjana Khatun, a returnee migrant from Sirajganj Sadar Upazila, said the money was quickly spent on household necessities.

Sajjadur Rahman from Sharsha upazila in Jashore, who returned from Italy, said he attempted to start a small business with government support but found the amount insufficient to sustain any meaningful venture.

Running from October 2021 to June 2026, the RAISE project involves $200 million in World Bank loans. Of this, $150 million is being implemented through Palli Karma-Sahayak Foundation (PKSF), while nearly $50 million is allocated to the Wage Earners' Welfare Board (WEWB).

The ERD approved the PKSF portion, as the organisation disburses funds to beneficiaries at fixed interest rates, allowing the government to recover the loan. However, officials objected to an additional $75 million loan proposal for WEWB, noting that the funds are distributed as non-recoverable grants, making the loan financing policy inconsistent.

ERD officials said direct communication with beneficiaries in 20 districts showed that such small incentives were largely ineffective. As a result, the project's core objectives are not being met, while future debt repayment obligations continue to grow.

Zahid Hussain said social assistance and grants for the poor do not generate financial returns and should therefore be funded from domestic revenue rather than foreign loans.

Deshbandhu Sugar Mills Ltd, a sugar industry pioneer in South Asia, collapsed with a hefty debt burden that forced it to shut down operations, leaving eight lenders exposed to over Tk3,300 crore in outstanding loans.

According to Bank Asia, one of the eight lenders, and its internal inspection findings, funds were diverted to Deshbandhu's sister concerns, creating an equity shortfall of over Tk1,300 crore as of June 2023. This means the company now has no remaining equity, and the banks are unlikely to recover the Tk1,300 crore even after selling its assets.

An equity shortfall occurs when a company's liabilities exceed its assets, meaning the company effectively has negative net worth.

In this context, Bank Asia had reported Deshbandhu Sugar as a "wilful defaulter" to the Bangladesh Bank several months ago after finding "fund diversion." The central bank's policy committee also rejected the company's loan rescheduling proposal, citing the "wilful defaulter" status.

However, following an appeal from the Deshbandhu Group, the Bangladesh Bank has instructed Bank Asia to withdraw the wilful defaulter report – a move which has raised questions among bankers about the effectiveness of the wilful defaulter framework, as the same bank board that reported the client must now approve its removal.

When contacted, Sohail RK Hussain, managing director of Bank Asia, told TBS the bank had filed a criminal case against the borrower after its internal inspection revealed that sales proceeds were missing against working capital. Their internal inspection found that the business had "diverted funds" from cash flow to its seven sister concerns instead of repaying bank loans.

"The company has no current assets against a bank liability of Tk3,320 crore. We have been informed that Deshbandhu Sugar has been temporarily shut down since at least January 2025," he added.

Bank Asia had previously rescheduled Deshbandhu's loans four times, but the company failed to continue payments and defaulted again. The bank also said it had sought travel bans on the business owners, Golam Mostafa and Golam Rahman, through the court.

Other banks exposed to Deshbandhu's loans include Southeast, Mercantile, NCC, First Security Islami, Agrani, Social Islami, and Islami Bank.

Meanwhile, First Security and Social Islami have merged with three other weak banks, while Islami Bank continues to struggle with huge defaulted loans exceeding Tk 1 lakh crore.

Deshbandhu Group, however, did not comment on the allegation of fund diversion.

When contacted, Deshbandhu Group Managing Director Golam Rahman said he is sick and unable to talk.

Additional Managing Director Brig Gen (Retd) Zakir Hossain said they plan to reschedule their loans by this December, as the central bank has already instructed Bank Asia to lift the wilful defaulter status.

When asked why the business was unable to repay the loans, he said he could not explain. He also declined to comment on how Deshbandhu Group continued investing in sister concerns despite being unable to service its debt.

The account performance of Deshbandhu Sugar began to deteriorate in 2012, and the company started rescheduling loans from 2013, according to banks.

However, in 2024, the Deshbandhu Group began setting up a 100% export-oriented jumbo bag manufacturing plant in Narsingdi's Palash upazila with an investment of Tk300 crore.

The group proceeded with the new plant even as another sister concern, Deshbandhu Polymer Limited — a manufacturer of polypropylene (PP) woven bags for the local market and exports — was incurring losses.

In a qualified audit opinion for the year ended 30 June 2025, the auditor noted that Deshbandhu Polymer reported sales of Tk20.48 crore against a cost of sales of nearly Tk30 crore, resulting in a gross loss of Tk9.45 crore. The gross loss margin of 46.2% is unusually high for the company's line of business and raises concerns about the appropriateness of inventory valuation and the allocation of manufacturing costs.

Why BB instructed lifting Deshbandhu's wilful defaulter status

Bank Asia reported Deshbandhu Sugar Mills as a "wilful defaulter" to the Bangladesh Bank in December 2024, following the central bank's reporting criteria. Subsequently, the policy committee of the Bangladesh Bank rejected Deshbandhu Group's rescheduling proposal in May 2025.

However, on 8 December, Bank Asia received a letter from the Bangladesh Bank instructing the bank to take necessary measures to lift the wilful defaulter status of Deshbandhu Sugar Mills. The letter cited the customer's goodwill and intent to repay the loans as the reason for removing the company from the wilful defaulter list.

The instruction also required the bank to update the customer's Credit Information Bureau (CIB) status according to the bank-client relationship and to withdraw the name from the wilful defaulter list, subject to board approval.

This move raised a question among bankers: when the central bank instructs a bank to lift a client's wilful defaulter status, what is the point of board approval if the same board had originally placed the name on the list?

When asked on what grounds the Bangladesh Bank instructed the removal of Deshbandhu's name from the wilful defaulter list, Arif Hossain Khan, spokesperson and executive director of the central bank, declined to comment.

He said he was unaware of the matter and had contacted the relevant department for clarification, but did not receive a response.

The Business Standard had sent a written query to the Bangladesh Bank seeking clarification on the grounds for the instruction, but did not receive a response by publication time.

The Deshbandhu Group has reportedly been pursuing the Bangladesh Bank through the Ministry of Labour and Employment to secure a bailout by allowing rescheduling of its loans.

In a letter addressed to Bangladesh Bank Governor Ahsan H Mansur on 14 October, the ministry requested to urgently facilitate loan rescheduling, provide essential working capital, and reopen back-to-back Letter of Credit (LC) facilities for Deshbandhu Group factories to ensure the distressed conglomerate's operation continues.

The letter stressed the group's importance to the national economy, saying that "Deshbandhu Group is one of the country's largest industrial conglomerates. Since 1989, it has contributed to the national economy by establishing large and medium-sized industries in remote areas, creating 25,000 jobs. Various factories remain shut due to a lack of necessary raw materials and working capital, with five operating at a maximum of 25% capacity."

The letter also urged the central bank to provide capital and back-to-back LC facilities to resolve the impending labour crisis and restore factory operations.

Several factories under the Deshbandhu Group halted production following the political transition after the fall of the Hasina government on 5 August 2024. Currently, five export-oriented ready-made garment (RMG) units are struggling to remain partially operational.

Following the ministry's request, the Bangladesh Bank instructed Bank Asia to remove Deshbandhu's name from the wilful defaulter list to allow implementation of the loan rescheduling facility.