The general manager, the third-highest post at the Sammilito Bank PLC, can be appointed through open competition, transfer of GMs from state banks, or specially selecting officials from the five banks being merged to form the new bank, the government has decided.

Meanwhile, appointments to the managing director (MD) and deputy managing director (DMD) posts will be done through an open competitive process, according to a policy issued by the Financial Institutions Division (FID) yesterday.

The policy states that until the service regulations for the Sammilito Bank are formulated, appointments to these three positions will be made under this policy.

However, the process of appointing the MD had already begun through a newspaper advertisement before the new policy was issued.

According to sources familiar with the matter, 10 candidates have been shortlisted based on the prescribed qualifications.

From these 10, a subcommittee led by the Bangladesh Bank (BB) Governor Ahsan H Mansur will finalise one candidate for appointment.

For the positions of MD and DMD, recruitment will be conducted through open competition based on required educational qualifications and other experiences.

For the GM position, in addition to open competition, two separate arrangements will apply. One arrangement is that existing GMs working in state-owned, specialised, and financial institutions may be transferred to the newly formed bank with the approval of the finance adviser/minister.

The other arrangement is that qualified and suitable officials of equivalent rank from the merging banks - First Security Islami Bank, Exim Bank, Global Islami Bank, Union Bank, and Social Islami Bank. They may be appointed to the GM positions of the new bank.

The age limits for eligibility are 65 years for MD, 62 years for DMD, and 60 years for GM. The tenure of these positions will be three years on a contractual basis, with the possibility of renewal if necessary.

An eight-member selection committee led by the finance adviser/minister will decide on the appointment of the MD and DMD.

The members will include the principal secretary to the prime minister or chief adviser, the BB governor, the finance secretary, the FID secretary, the public administration secretary, and the chairman of the Shariah Advisory Board of the BB.

Meanwhile, the FID has issued a separate revised policy for appointment and promotion to these three positions in state-owned banks and financial institutions. The new policy reduced the minimum tenure in the previous post for promotion to two years, from three years.

A ministry official said the criteria have been revised so that those who gained opportunities during the previous government cannot take advantage of promotion merely on the basis of seniority.

Another major revision is the change in seniority score, which has been increased to 15 from five.

Defaulted loans at the country’s non-bank financial institutions (NBFIs) have surged to a record 37 percent, highlighting the sector’s fragile condition.

As of September last year, 35 NBFIs held Tk 29,408.66 crore in bad loans, equivalent to 37.11 percent of their total disbursed loans of Tk 79,251.11 crore, according to Bangladesh Bank (BB) data.

A year earlier, in September 2024, the sector’s non-performing loan ratio stood at 35.52 percent.

Industry insiders attribute the rise in bad loans to “the legacy of the massive irregularities and scams that took place seven to eight years ago”.

Referring to a Bangladesh Bank probe, they said that PK Halder, the former managing director of NRB Global Bank (later renamed Global Islami Bank), defrauded at least Tk 3,500 crore from four NBFIs.

The affected institutions are People’s Leasing, International Leasing, FAS Finance, and Bangladesh Industrial Finance Company Limited (BIFC). As a result, these four non-banks became ailing, with over 90 percent of their loans turning bad.

Industry insiders said the central bank’s inadequate supervision is to blame for the current state of the NBFI sector. Many non-banks are now unable to repay depositors because of widespread irregularities and scams.

Amid this situation, the central bank is planning to liquidate nine ailing companies.

These are FAS Finance, Bangladesh Industrial Finance Company, Premier Leasing, Fareast Finance, GSP Finance, Prime Finance, Aviva Finance, People’s Leasing, and International Leasing.

The government has pledged Tk 5,000 crore to repay depositors of these NBFIs.

A senior central bank official said administrators are expected to be appointed to these NBFIs soon.

Industry sources said some banks and NBFIs have fallen victim to an “unholy nexus,” which they described as a serious threat to the integrity of the overall financial system.

Additionally, several other NBFIs have been infiltrated by unscrupulous investors who exploited their positions as chairpersons and directors for personal gain, they added.

British Prime Minister Keir Starmer spoke to US President Donald Trump on Sunday after talking to the leaders of Denmark, the EU and NATO, to say he believed "applying tariffs on allies for pursuing the collective security of NATO allies is wrong".

A Downing Street spokesperson said Starmer held phone calls with Danish Prime Minister Mette Frederiksen, European Commission President Ursula von der Leyen and NATO Secretary General Mark Rutte. He then spoke to Trump.

"In all his calls, the prime minister reiterated his position on Greenland. He said that security in the High North is a priority for all NATO allies in order to protect Euro-Atlantic interests," the spokesperson said.

The Bangladesh Securities and Exchange Commission (BSEC) has imposed fines on two credit rating companies – ARGUS Credit Rating Services Ltd and National Credit Ratings Limited – for violating regulatory provisions governing the credit rating process.

According to sources at the securities regulator, the commission fined Tk5 lakh each on the two firms. The penalties were disclosed in the BSEC's monthly enforcement report for December.

In the case of ARGUS Credit Rating Services Ltd, the action followed a complaint lodged by National Credit Ratings Limited.

National Credit Ratings informed the regulator that it had entered into a credit rating agreement with Padakhep Manabik Unnayan Kendra (PMUK) on 11 April 2019. Under the Credit Rating Companies Rules, 1996, and the terms of the agreement, National Credit Ratings was responsible for conducting surveillance ratings for at least three years following the initial rating.

However, the complaint stated that PMUK, without obtaining prior approval from the BSEC, subsequently entered into a separate agreement with ARGUS Credit Rating Services and obtained a credit rating from the firm.

A BSEC enquiry found the allegation to be valid and concluded that ARGUS had breached the applicable rules. As a result, the commission decided to impose a fine of Tk5 lakh on ARGUS Credit Rating Services Ltd.

Separately, the regulator also took enforcement action against National Credit Ratings Limited following a complaint from Credit Rating Information and Services Limited (CRISL).

According to the complaint, CRISL had signed an agreement with Rupali Insurance Company to conduct a credit rating. Despite the existing agreement, the insurer reportedly obtained a rating on the same issue from National Credit Ratings.

The BSEC investigation found that National Credit Ratings had violated the credit rating rules by issuing a rating and therefore imposed a fine of Tk5 lakh on National Credit Ratings Limited.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Khondoker Rashed Maqsood on Sunday said recent regulatory reforms have significantly eased the entry of new companies into the capital market, particularly through initial public offerings (IPOs), marking a major step forward in market development.

He made the remarks while speaking at the fifth monthly coordination meeting with capital market stakeholders held at BSEC in Agargaon.

The chairman outlined the commission's key reform initiatives aimed at strengthening market structure and restoring investor confidence.

He said the commission completed three major regulatory reforms in 2025 the margin rules, mutual fund rules and the public offer of equity securities rules, which together constitute a substantial part of the long-awaited legal overhaul of the capital market.

Describing IPOs as the "heart of the capital market," Rashed Maqsood said the new IPO rules have removed long-standing bottlenecks and created a more efficient and transparent pathway for new listings.

The meeting was attended by Anisuzzaman Chowdhury, special assistant to the chief adviser and chairman of the committee formed to strengthen the capital market, along with BSEC commissioners and other senior market officials.

Anisuzzaman said addressing identified structural barriers must be a collective effort, stressing the need for coordinated action to resolve long-standing challenges.

He welcomed the stakeholder consultation mechanism, noting that such forums are essential for identifying problems and crafting practical solutions.

Anisuzzaman also called for swift resolution of immediate obstacles and urged stakeholders to work towards long-term goals under a clearly defined development roadmap.

The meeting discussed a wide range of reform and development initiatives, including a five-year capital market development plan, introduction of new financial products, roadshows, e-KYC-based investor onboarding and online BO account opening, establishment of a commodity exchange, increased API connectivity among market institutions, listing of state-owned and multinational companies, mergers and acquisitions, development of the mutual fund sector, institutional governance reforms, registration and operationalisation of CCBL, expansion of merchant banking activities, and nationwide investment education programmes.

Among others present were Dhaka Stock Exchange (DSE) Chairman Mominul Islam, CCBL Chairman Major General (retd) Wahid-uz-Zaman, DSE Brokers Association (DBA) President Saiful Islam, Investment Corporation of Bangladesh (ICB) Managing Director Niranjan Chandra Debnath, DSE Managing Director Nuzhat Anwar, Central Depository Bangladesh Limited (CDBL) Managing Director Abdul Motaleb Chowdhury, Bangladesh Merchant Bankers Association (BMBA) President Iftekhar Alam, and DSE Director Minhaj Mannan Emon.

Tawfika Foods and Lovello Ice Cream, a listed company on the stock exchanges, reported that its net profit grew to Tk20.93 crore in the first half of the current fiscal year, marking a 62% year-on-year growth.

The company's net profit in the October-December quarter surged 119% to Tk11.41 crore.

Following the quarterly earnings despite growth in its profitability, its shares price fell by 1.54% to Tk70.10 each at the Dhaka Stock Exchange (DSE).

Its diluted earnings per share (EPS) in the first half stood at Tk2.13, and in the Q2 at Tk1.16, which was Tk1.38, and Tk0.56 respectively in the same time of the previous fiscal year.

Regarding the significant variation in EPS, Lovello said its net profit increased 62% compared as the sales increased 29%.

The diluted net operating cash flow per share significantly jumped to Tk4.48, up from Tk1.78 in the same time of the previous fiscal year meaning that its cash inflow increased significantly.

While its net asset value increased by around Tk10 crore to Tk122.91 crore at the end of December, which was Tk112.27 crore at the end of June 2025, its quarterly report showed.

Lovello has paid a 16% dividend combining of 11% cash dividend and a 5% stock dividend for the fiscal year ending 30 June 2025 as part of its continued efforts to reward shareholders despite a modest drop in annual earnings.

At the end of FY25, the company reported earnings per share (EPS) of Tk1.65, in comparison, the restated EPS for FY24 were Tk1.79.

In the same meeting, the board proposed to increase the company's authorised capital from Tk100 crore to Tk200 crore, subject to approval from shareholders and regulators at the upcoming AGM.

In a recent disclosure, Taufika Engineering placement holders declared to have sold 5 lakh shares to Taufika Foods.

Md Ekramul Haque, a sponsor-director of Taufika Foods expressed his intention to transfer 25 lakh shares of the company to his brother Md Zahedul Haque, a general shareholder of the company by way of gift outside the trading system of the stock exchanges within 30 working days.

Fortune Shoes Limited slipped into losses in the first quarter of FY26, reflecting mounting cost pressures and ongoing governance concerns, according to its latest financial disclosure filed with the Dhaka Stock Exchange (DSE) on Sunday.

The footwear maker reported a loss per share of Tk0.31 for the July–September 2025 quarter, reversing from a profit of Tk0.11 per share in the same period a year earlier.

Following the disclosure, the company's share price fell 1.47% to close at Tk13.40 on the DSE.

The latest quarterly loss follows a difficult FY25, during which the company's profitability weakened amid rising manufacturing expenses and higher finance costs driven by elevated interest rates.

Earlier disclosures showed that earnings for the year ended 30 June 2025 declined as material costs surged, customer claims increased, and losses were incurred on several export orders. Reduced contributions from other income sources also weighed on overall profitability.

Despite the earnings pressure, Fortune Shoes recommended a 0.50% cash dividend for FY25, applicable only to general shareholders, excluding sponsors and directors.

Meanwhile, the company's auditors have raised serious concerns over financial management and regulatory compliance. G Kibria & Co, Chartered Accountants, reported major documentation gaps involving approximately Tk76 crore withdrawn in cash during the 2024–25 financial year.

According to the audit report, the funds were withdrawn from a regular account with Islami Bank through 207 cheques, but the company failed to provide essential supporting records, including cash and bank books, cheque counterfoils, vouchers, invoices, or delivery challans.

The auditors also highlighted irregularities in dividend distribution, noting that although dividends for the 2022, 2023 and 2024 financial years were approved, the full amounts were not transferred to designated dividend accounts. As of 30 June 2025, unpaid dividends stood at Tk10.05 crore a violation of applicable laws and regulations.

In a significant policy shift aimed at safeguarding the domestic spinning industry, the government is moving to scrap a decades-old duty-free import facility for yarn, a move that could see import taxes on the raw material surge to approximately 37%.

The commerce ministry formally requested the National Board of Revenue (NBR) on 12 January to suspend tariff-free imports under the bonded warehouse facility – an incentive in place since the 1980s – indefinitely. While the NBR is yet to implement the directive as of 18 January, the proposal has already created a sharp divide between local textile millers and export-oriented garment manufacturers.

A lifeline for local spinners

Local textile mill owners, who have invested an estimated $23 billion in the sector, argue that the move is essential for survival. According to the Bangladesh Textile Mills Association (BTMA), nearly 100 mills have already partially or fully closed due to a lack of demand.

"This decision provides a chance for our industry to survive," said Saleudh Zaman Khan Jitu, managing director of NZ Apparels Limited. He noted that Indian exporters have been selling yarn in Bangladesh at $0.30 per kilogram cheaper than their own domestic rates, thanks to various Indian government subsidies.

Fazlul Hoque, managing director of Israq Spinning Mills Limited, highlighted the severity of the crisis: "We currently have a stockpile of 3,000 tonnes of yarn, whereas our normal inventory is around 700 tonnes. Restricting imports will finally allow us to clear this stock."

Bangladesh earns about 85% of its export revenue from the readymade garment sector, with knitwear accounting for roughly 54% of total garment exports. Knitwear production relies heavily on 10-30 count yarn – the very category for which import restrictions have been sought.

According to Export Promotion Bureau data, Bangladesh imported yarn worth Tk26,700 crore (around $2.22 billion) in the 2024-25 fiscal year. Industry insiders say nearly 90% of imported yarn comes from India, where exporters allegedly benefit from government subsidies that allow them to sell yarn in Bangladesh at prices about $0.30 per kg lower than in their own domestic market.

The BTMA says the surge in duty-free imports has severely hurt local producers. Speaking at a recent press conference, BTMA President Showkat Aziz Russell said nearly 100 textile mills had already shut down partially or fully due to declining orders.

In its letter to the NBR, the commerce ministry argued that bonded imports of yarn had increased sharply over the past two years, drastically reducing sales of locally produced yarn and causing heavy financial losses. The letter warned that if the trend continues, more spinning mills will face closure, increasing import dependence, lengthening lead times, reducing local value addition and putting pressure on foreign exchange reserves.

RMG leaders raise concerns

However, the apparel sector – the backbone of Bangladesh's exports – has reacted with alarm. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) warn that the move could be "suicidal."

Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), alleged that some local yarn producers had already begun exerting pressure by delaying proforma invoices.

Industry leaders estimate that if duty-free imports are halted, the price of yarn could rise by approximately 10%, jumping from the current $2.55-$2.60 per kilogram to as much as $2.85.

"Our export competitiveness is at stake," said Md Shehabudduza Chowdhury, vice president of BGMEA. "Global demand for clothing has dropped by 15%, and exports have been declining for five months. We cannot pass these increased production costs on to international buyers."

The BGMEA and the BKMEA yesterday called a press conference for today to highlight their position.

Yarn price may rise by 10%

Currently, locally produced yarn sells for $2.70–2.75 per kg, compared with $2.55–2.60 for imported Indian yarn. Industry estimates suggest prices could rise by about 10% to $2.80–2.85 per kg if import restrictions are enforced.

After several months of relative stability, the prices of daily essentials are again edging upwards, with traders pointing to delays in cargo clearance at Chattogram port and consumer groups blaming a lack of effective market oversight.

Wholesale prices of key Ramadan items such as edible oil, sugar, chickpeas and lentils have increased by Tk3 to Tk5 per kilogram in just a week, raising concerns that retail prices could soon rise.

Market trends in Khatunganj

The impact is already visible in Chattogram's largest wholesale hub, Khatunganj. Over the past week, wholesale prices of almost all essential goods have risen. Locally produced onions are now selling at Tk35-40 per kg, up from Tk34-38 a week earlier, while Indian onions have increased by Tk3 to Tk60-65. Garlic prices have climbed by Tk3 to Tk130 per kg, and ginger, which sold at Tk100-105 two weeks ago, is now priced at Tk110-115. Chickpeas have risen by Tk5 to Tk70-75, depending on quality, while anchor lentils are selling at Tk45-48 per kg after a Tk2 increase.

At the wholesale level, sugar prices have jumped by Tk100 per maund (40kg) to Tk3,500, while palm oil is trading at Tk5,990 per maund. Prices of vermicelli, a Ramadan staple, have also increased to Tk1,950-2,000 per maund from Tk1,800-1,900 earlier.

Lighterage vessel shortage

Behind the price pressures lies a more serious logistical bottleneck at Chattogram Port. The main congestion points are the outer anchorage and the Kutubdia channel, where more than 100 cargo vessels remain stranded.

According to port data, as of 17 January, these ships were carrying over 4.5 million tonnes of goods, including around 1.2 million tonnes of Ramadan-related food items such as wheat, maize, soybeans, chickpeas, lentils and edible oil. More than 2,00,000 tonnes of sugar are also stuck on five vessels, while fertiliser and cement clinker shipments are similarly delayed.

Under normal conditions, a 50,000-tonne mother vessel can discharge cargo within seven to ten days using lighterage vessels to transport goods to river ports and terminals. Currently, however, acute shortages of lighterage vessels have stretched waiting times to 20-30 days.

The WTCC said demand for lighterage vessels far exceeded supply. On 13 January alone, 104 lighterage vessels were required to service 90 mother ships, but only about 50 could be allocated.

Calls for intervention

Expressing strong dissatisfaction with the current situation, SM Nazer Hossain, divisional president of the Consumers Association of Bangladesh (CAB) in Chattogram, told TBS that the lack of effective monitoring is allowing unscrupulous traders to exploit the market.

He noted that consumer groups had been urging authorities for stricter oversight for the past two to three months, but enforcement remained weak as officials were preoccupied with election-related and protocol duties.

"Ramadan is a month of worship for people, but for dishonest traders it becomes a season of profiteering," Nazer said, warning that artificial shortages could be created if monitoring is not strengthened immediately.

The CAB leader cautioned that the situation could mirror the liquefied petroleum gas market, where supply shortages are cited despite availability at higher prices. He stressed that waiting until Ramadan to intensify enforcement would be too late, as markets typically spiral out of control by then.

However, traders offered a different perspective. Md Mohiuddin, general secretary of the Chaktai-Khatunganj Aratdar General Traders Welfare Association, said supplies are adequate and trading is normal. He argued that prices remain lower than last year and have only risen slightly after an earlier period of unusually low rates.

The Directorate of National Consumer Rights Protection in Chattogram dismissed the justification for price hikes. Assistant Director Md Anisur Rahman said stocks currently exceed demand and import costs are lower than before. "There is no logical reason for prices to rise at this moment," he said, adding that action will be taken against any trader found increasing prices unreasonably.

Anisur also claimed that regular market monitoring is under way and will be intensified in the coming days.

Over the past decade, ESG (Environmental, Social, and Governance) reporting has gradually moved from a voluntary practice to a mandatory legal framework worldwide.

Alongside European markets such as the London Stock Exchange, Euronext, and the Frankfurt Stock Exchange, ESG reporting has now become mandatory in Asian markets like Singapore and India.

Despite its global importance, ESG reporting remains largely absent in Bangladesh. While some multinational and fundamentally strong companies follow ESG practices partially, there is still no effective or mandatory initiative at the regulatory level.

According to sector insiders, ESG has become a pressing necessity for Bangladesh's capital market in order to restore investor confidence and attract foreign investment. Confidence has not fully returned since the market crash of 2010, nor has foreign investment increased significantly. Frequent policy changes, lack of transparency, and lagging ESG standards are cited as the main reasons behind this reluctance.

However, recently, a total of 16 companies listed on Bangladesh's stock market have been included in the Bloomberg ESG universe.

Notable among them are Grameenphone, BAT Bangladesh, Marico Bangladesh, BRAC Bank, IDLC Finance, Square Pharmaceuticals, Walton Hi-Tech, LafargeHolcim, MJL Bangladesh, BSRM, Linde Bangladesh, Reckitt Benckiser Bangladesh, Singer Bangladesh, Heidelberg Materials Bangladesh, Robi Axiata, and City Bank.

To address post-LDC challenges and achieve the SDGs, business organisations in the country have begun working on ESG issues. The Metropolitan Chamber of Commerce and Industry (MCCI) has already formed a 10-member committee to work on ESG development.

Although ESG is not mandatory in Bangladesh, the Dhaka Stock Exchange is working with GRI, which enables listed companies to prepare sustainability reports.

However, it has been observed that Bangladeshi companies prepared ESG reports partially in previous years. Due to the lack of mandatory requirements, most of these companies did not continue the practice.

When asked, Abul Kalam, Director and Spokesperson of the Bangladesh Securities and Exchange Commission (BSEC), said that BSEC has taken active initiatives to bring ESG reporting under a legal framework to enhance transparency and accountability in the capital market. Given the growing importance of ESG reporting, the commission is treating the matter with utmost seriousness.

He noted that under the current Corporate Governance Code, ESG standards are only partially complied with, which is insufficient to ensure full transparency. To address this limitation, work is underway to revise the Corporate Governance Code, where ESG reporting will be incorporated as a strong and effective provision.

Bangladesh Bank's 2022 Environmental and Social Risk Management (ESRM) guidelines and the 2020 Sustainable Finance Policy require banks to consider environmental and social risks. As a result, rapid growth has been observed in green and sustainable finance. In the first quarter of 2025, green finance reached approximately Tk8,763 crore and sustainable finance reached around Tk1.49 lakh crore, representing growth of 21% and 69% respectively, demonstrating that the policies are effective and that financial institutions are increasingly inclined toward environmentally friendly investments.

Arif Hossain Khan, Executive Director of Bangladesh Bank, told The Business Standard that banks are being encouraged to provide greater credit facilities to companies investing in environmentally friendly projects in Bangladesh. At the same time, Bangladesh Bank is closely evaluating ESG issues. However, considering the current market conditions, the country is not yet ready to make ESG mandatory.

Tarek Refat Ullah Khan, Managing Director of BRAC Bank, said that ESG reporting is now essential for a climate-vulnerable country like Bangladesh. "Bangladesh faces climate risks such as floods, cyclones, and water scarcity, which directly affect businesses and investments financially. ESG reporting helps identify risks that are not captured in conventional financial reporting. Foreign investors now expect disclosures in line with international standards such as ISSB or GRI."

He added that as more than 35% of BRAC Bank's shares are held by foreign investors, the bank has been regularly disclosing such information for the past three years.

Md Mostafizur Rahman Razu, Head of EHS & Sustainability at Walton Hi-Tech Industries, said that sustainability at Walton is fully integrated into everyday operations and decision-making.

From reducing carbon and water footprints to recycling wastewater and generating renewable energy, Walton's initiatives demonstrate a strong commitment to environmental protection, workplace safety, and social responsibility. The company's strategic approach sets a benchmark for responsible industrial growth.

He said that in FY 2024–25, Walton achieved significant progress: reducing its carbon footprint by 11.4%, reducing its water footprint by 10.7%, recycling 52% of process wastewater, and generating 13 MW of renewable solar energy, with a target of 50 MW by 2026.

Square Pharmaceuticals' Chief Financial Officer, Muhammad Zahangir Alam, said, "We report ESG from an ethical standpoint. Square Pharma places importance on every aspect of ESG and publishes this report every December. We believe that for companies aiming to play a significant role in the global pharmaceutical industry, publishing such reports is extremely necessary."

Akramul Alam, Head of Research at Royal Capital, identified four major challenges to ESG implementation in Bangladesh. According to him, "First, many investors prioritise short-term profits over long-term sustainability and are unwilling to bear the additional costs of ESG compliance. Second, no globally aligned ESG roadmap suitable for Bangladesh's context has yet been developed. Third, companies are unable to allocate sufficient resources to achieve targets for reducing carbon emissions or improving energy efficiency. Fourth, regulatory oversight remains limited."

Nabil J Ahmed, Executive Director (Standard Setting) of the Financial Reporting Council (FRC), said that ESG is no longer an option. He stated, "It is essential for a stable economy. Especially for the export-oriented ready-made garment sector, ESG is the key to maintaining international trade relationships. ESG reporting will reduce information asymmetry and make the capital market more attractive to foreign investors."

He further said that the FRC is currently working toward adopting the International Sustainability Standards Board frameworks, specifically the General Requirements and Climate-related Disclosures. In addition, Bangladesh Bank's Sustainable Finance Policy has already laid the groundwork by encouraging banks to prioritise green investments.

Professor Abu Ahmed, capital market analyst and Chairman of ICB, said, "Bangladesh should begin practising ESG because it enhances companies' long-term sustainability. Over the past 30 years, many Bangladeshi investors have been deceived after investing in various companies – companies went bankrupt or management engaged in fraud. If ESG had been in place, investors would at least have been able to understand when to invest and when to exit a company."

Dr Fazle Rabbi Sadeq Ahmed, a prominent expert in agriculture, climate change, and the environment in Bangladesh and Deputy Managing Director of the Palli Karma-Sahayak Foundation, told The Business Standard that ESG practices in Bangladesh are currently voluntary. Some garment companies, particularly exporters, are following these practices.

Bangladesh's garment and other accessories industry is emerging as a formidable export powerhouse, with direct exports doubling over the last three years and stakeholders projecting a rise to $5 billion within the next three years if policy barriers are removed.

According to the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), the sector contributed $7.45 billion to national exports in the 2024-25 fiscal year. While the majority of this consists of "deemed exports" (supplies to the local RMG sector), direct exports reached $1.6 billion.

From import reliance to global ambition

Two decades ago, the Bangladeshi garment industry was almost entirely dependent on imported accessories. Today, through investments totalling approximately Tk40,000 crore, the sector has achieved nearly 100% supply capacity for the local export-oriented industries, employing over 7,00,000 people across 2,000 functional units.

"With the removal of a few policy hurdles, we can achieve $5 billion in direct exports not only for garments but also for pharmaceuticals, agriculture, footwear and other industries within three years," Md Shahriar, president of BGAPMEA, told TBS.

The global fashion accessories market, valued at $720 billion in 2023, is expected to hit $1,502 billion by 2033. Industry insiders believe Bangladesh is perfectly positioned to capture this growth as manufacturing hubs shift away from China.

As China moves toward high-tech manufacturing and away from basic items, foreign investors are flocking to Bangladesh. In the last two years alone, at least eight Chinese firms, including Baida Industrial, YiXin Bangladesh, and Tianhui Button, have proposed or initiated investments in Export Processing Zones (EPZs).

Over the past three years, nearly 300 new accessories companies have entered the Bangladeshi market, BGAPMEA estimates.

Local firms are also expanding rapidly. RSS Thread and Accessories Limited has doubled its production in three years, now manufacturing 35 types of accessories. The firm has been nominated by the Spanish retail giant Inditex Group to supply its 200+ Bangladeshi garment manufacturers.

Technological evolution

The sector is undergoing a digital transformation to meet international compliance standards. Over 100 factories are now prepared to invest in Radio Frequency Identification (RFID) technology for automated tracking and inventory management.

Innovative products such as "Digital Product Passports" (DPP) are already being manufactured locally. RSS Thread and Accessories produces specialised chips for labels that store comprehensive supply-chain data, a requirement for new European Union initiatives.

"Through these chips, buyers can verify where a product was made and what materials were used," said Sheikh Zulfikar Ali, group director of RSS Thread. "We have also introduced data-metrics systems and invisible coding to prevent counterfeiting, ensuring brand authenticity."

Policy challenges

Despite its progress, entrepreneurs say the sector faces significant policy challenges, including discriminatory export incentives and high import taxes on raw materials. Md Shahriar said the accessories sector has never received cash incentives, unlike other export industries.

He also pointed out that importing paper below 300 GSM attracts import taxes ranging from 58% to 83%, making it difficult to produce competitively priced products. In addition, exporters face various customs-related hurdles.

Former BGAPMEA president Rafez Alam Chowdhury said the sector continues to suffer from policy discrimination, warning that without targeted support, Bangladesh may fail to fully capitalise on the growing global demand for packaging and accessories products.

Abdul Kader Khan, managing director of Khan Accessories and a former BGAPMEA president, noted that political uncertainty over the past year has dampened investment inflows. He expressed optimism that investment would accelerate once stability returns following the formation of a new government.

New-generation Meghna Bank aims to rank among the country's top 15 lenders by expanding its footprint in the SME sector, Managing Director Syed Mizanur Rahman has said.

In a recent interview with The Business Standard's ASM Saad, he added that the bank plans to invest heavily in digital banking to reach customers in remote areas.

At a time when the banking sector is facing a severe crisis with default loans at 36%, Meghna Bank has kept its non-performing loans in single digits, which he believes will help build depositor confidence.

What kind of banking does Meghna Bank focus on?

Meghna Bank is focusing on small lending, particularly in the SME segment. The aim is to channel funds to areas where there is strong demand for small loans, so that small businesses can access financing more easily. There is currently significant demand for this type of small-scale financing, and the bank is working to understand the specific credit needs at the grassroots level.

Meghna Bank believes this approach will play a leading role in bringing positive change to the rural economy. At present, around 80% of the bank's portfolio is in corporate banking, but it is gradually expanding its exposure to retail, SME and digital banking in line with market demand.

Why is Meghna Bank focusing on retail banking?

Most banks in the country are heavily focused on corporate lending. There is a belief that larger loans generate higher profits. However, large lending also creates significant concentration risk. Non-performing loans have risen sharply, making corporate banking particularly vulnerable. By concentrating too heavily on corporate lending, many banks have significantly increased their risk exposure. If banks had maintained a more balanced focus on SME, retail and corporate banking from the outset, the sector's current challenges might have been less severe.

For this reason, Meghna Bank believes diversification is essential for long-term sustainability. Rather than being confined to a single segment, banks need a more diversified business model. Taking customer demand into account, Meghna Bank is therefore placing greater emphasis on retail banking and aims to deepen diversification in this segment after carefully assessing risk and business dynamics.

Why can depositors have confidence in Meghna Bank?

The country's top banks have a long history. Many first-generation banks are over 40 years old. Meghna Bank, by contrast, is about to celebrate 13 years of operations this year. When large and established companies choose a bank for deposits, they consider its overall financial health, as deposits are the lifeblood of a bank.

Meghna Bank's financial position is strong, with non-performing loans below 6%, giving it a solid foundation. As a result, several corporate clients are placing deposits with Meghna after assessing its financial strength. We expect individual customers will also be encouraged by the bank's robust position, as key indicators such as the ADR ratio, capital adequacy, and non-performing loans compare favourably within the sector.

What are the future plans for digital banking?

Since the future of banking is increasingly digital-focused, Meghna Bank is ramping up investments in this area. The plan is to integrate four platforms – web-based banking, corporate banking, retail banking, and mobile financial services (Meghna Pay) – into a single seamless system. This will allow customers to conduct transactions digitally without visiting a branch.

Once fully developed, digital banking will even enable customers to access loans remotely, a facility already available in many countries. We believe that Meghna can enter the list of the country's top 15 banks in the future, not merely in terms of profit but from a balance sheet strength perspective.

What challenges are fourth-generation banks facing?

Banks should not rely on political considerations; they must focus on their operations. Meghna Bank is actively building relationships with foreign correspondents and working to secure specific credit lines, which can be accessed once targets are achieved.

Political instability, however, can reduce the availability of credit lines. A fair and credible election is therefore essential, as it would show internationally that the country's situation is improving. After such an election, the overall environment is expected to stabilise, resolving issues related to credit line access.

Why is private sector investment low?

Currently, banks are struggling to find reliable, creditworthy borrowers. Political uncertainty has made entrepreneurs reluctant to invest in new businesses. As a result, private-sector lending demand is weak. This lack of new investment has contributed to rising unemployment. It is expected that after a credible election, private investment will pick up, which in turn will increase demand for loans.

At present, a significant portion of many banks' profits comes from treasury bills and bonds, reflecting the low appetite for private sector lending. Once investment activity resumes after the elections, demand for credit is likely to rise, enabling banks to expand lending again.

What impact does rescheduling loans have on the market in terms of reducing non-performing loans?

Many of the country's large borrowers have taken loans from banks but failed to repay them, with some diverting funds abroad instead of using them for the intended business purpose. For such companies, granting a two-year grace period or a ten-year rescheduling makes little difference.

However, there are businesses that genuinely face losses due to currency fluctuations and other economic factors. These enterprises truly need support, and targeted rescheduling can help them recover.

Gold and silver hit record highs Monday while most equity markets fell after Donald Trump revived trade war fears by threatening several European nations with tariffs over their opposition to the United States buying Greenland.

The US president has fanned already-rising geopolitical tensions this month by insisting that Washington would take control of the North Atlantic island, citing national security needs.

And on Saturday, after talks failed to resolve "fundamental disagreement" over the Danish autonomous territory, he announced he would hit eight countries with fresh levies over their refusal to submit to his demands.

He said he would impose 10 percent tariffs on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland from February 1 -- rising to 25 percent from June 1 -- if they did not agree to the takeover.

The announcement drew an immediate response, with a joint statement from the countries saying: "Tariff threats undermine transatlantic relations and risk a dangerous downward spiral."

The move also threatened a trade deal signed between the United States and European Union last year, with German Foreign Minister Johann Wadephul telling ARD television: "I don't believe that this agreement is possible in the current situation."

Meanwhile, aides to French President Emmanuel Macron said he would ask the EU to activate a never-before-used "anti-coercion instrument" against Washington if Trump makes good on his threat.

This measure allows for curbing imports of goods and services into the EU, a market of 27 countries with a combined population of 450 million.

Bloomberg reported member states were discussing the possibility of retaliatory levies on €93 billion ($108 billion) of US goods.

The prospect of a trade war between the global economic heavyweights shook markets, with safe haven assets extending gains that had come on the back of Trump's threats against Iran last week and the US ouster of Venezuelan president Nicolas Maduro.

Gold, a key go-to in times of turmoil, hit a peak of $4,690.59, while silver struck $94.12.

On equity markets, Tokyo, Hong Kong, Shanghai, Sydney, Singapore and Wellington retreated, though there were gains in Seoul and Taipei.

European and US futures sank.

The dollar also retreated against its peers, with the euro, sterling and yen all higher.

"The next signpost is whether this moves from rhetoric to policy, and that is why the concrete dates matter," wrote Charu Chanana, chief investment strategist at Saxo Markets.

"On the European side, the decision path matters as much as the headline, because there is a difference between merely mentioning the anti-coercion instrument as a signal and formally pursuing it as action.

"Even if the immediate tariff threat gets negotiated down, the structural risk is that fragmentation keeps rising, with more politicised trade, more conditional supply chains, and higher policy risk for companies and investors."

There was little major reaction to data showing China's economy expanded five percent last year, in line with its target. However, growth in the final three months slowed sharply from the previous quarter.

Investors in Seoul and Taipei brushed off a warning from US Commerce Secretary Howard Lutnick that South Korean chipmakers and Taiwan firms not investing in the United States could be hit with 100 percent tariffs unless they boost output in the country.

- Key figures at around 0230 GMT -

Tokyo - Nikkei 225: DOWN 1.0 percent at 53,412.88 (break)

Hong Kong - Hang Seng Index: DOWN 0.7 percent at 26,670.01

Shanghai - Composite: DOWN 0.1 percent at 4,099.23

Euro/dollar: UP at $1.1628 from $1.1604 on Friday

Pound/dollar: UP at $1.3397 from $1.3382

Dollar/yen: DOWN at 157.54 yen from 158.07 yen

Euro/pound: UP at 86.79 pence from 86.69 pence

West Texas Intermediate: UP 0.1 percent at $59.52 per barrel

Brent North Sea Crude: FLAT at $64.15 per barrel

New York - Dow: DOWN 0.2 percent at 49,359.33 (close)

London - FTSE 100: FLAT at 10,235.29 (close)

Advanced Chemical Industries (ACI) PLC, one of the largest conglomerates in Bangladesh, is set to expand its business footprint into the semiconductor and property sectors.

To operate in these new segments, the ACI board has decided to form two new subsidiaries – ACI Semiconductor Limited and ACI Properties Limited – at a board of directors' meeting held on Thursday.

An official of ACI told TBS, "We are hoping for bright prospects in both business segments in the future, which is why the management has decided to enter these segments by forming two subsidiaries of ACI PLC."

ACI Semiconductor Limited will have an authorised capital of Tk100 crore and a paid-up capital of Tk10 crore.

In the company, ACI will own 85% shares, which is subject to the approval of the concerned authority.

ACI Properties Limited will have an authorised capital of Tk100 crore and paid-up capital of Tk10 crore. In the company, ACI will hold 85% shares.

The official said the new business segment will enhance ACI's business portfolio.

According to its latest annual report for the 2024-25 fiscal year, ACI owns 17 subsidiaries and five joint ventures and associate companies operating across the country through its five diversified strategic business units – healthcare, consumer brands, agribusiness, motors and retail chains.

Its healthcare division delivers innovative and pharmaceutical products, the consumer brands division with its toiletries, home care, hygiene, electrical, salt, flour, foods, rice, edible oil, paints and international businesses.

ACI's agribusiness arm is the country's largest integrated platform in agriculture, livestock and fisheries, while ACI Motors is a leading player in farm mechanisation, motorcycles, commercial vehicles and construction equipment.

The retail chain division operates Shwapno, the largest retail network in Bangladesh, with more than 683 outlets nationwide, including 220 newly opened stores, serving over 1,00,000 customers daily.

ACI traces its origins to Imperial Chemical Industries, a British multinational that established operations in then East Pakistan. Following Bangladesh's independence, the business became ICI Bangladesh Manufacturers Limited before being acquired by its management in 1992 and renamed Advanced Chemical Industries (ACI) PLC.

Financial performance

For the financial year ended on 30 June 2025, ACI reported a marked performance improvement, with its consolidated loss narrowing significantly. The group posted a consolidated loss of Tk41.91 crore, or Tk7.40 per share, compared with Tk128.47 crore and Tk15.88 per share in the previous year.

Its consolidated revenue for FY25 stood at Tk13,790 crore, up from Tk12,431 crore in the previous fiscal year.

ACI's management attributed the improvement in profitability to steady revenue growth and stronger cost control.

During the year, the company achieved a 10.93% increase in consolidated revenue and a 15.42% rise in gross profit. The growth in gross profit outpaced operating expense growth, leading to higher operating profit despite challenging market conditions.

However, the company noted that higher borrowing costs partially offset the gains. The cost of borrowings increased during the year, driven by rising interest rates and additional funding requirements for working capital and strategic investments to support business expansion.

ACI's 25% cash dividend was approved by the shareholders in the annual general meeting (AGM) held on 28 December 2025.

In the first quarter of the current fiscal year, ACI reported a consolidated profit of Tk6.32 crore with an earnings per share (EPS) of Tk0.39, which was a consolidated loss of Tk46.91 crore and loss per share of Tk4.82 in the same time of the previous fiscal year.

Its consolidated revenue surged to Tk3,696 crore from Tk2,971 crore in Q1 of FY25.

The group achieved a 24.40% revenue growth, which was contributed to by a number of businesses as demonstrated in consolidated operating segments.

The Central Counterparty Bangladesh PLC (CCBL) was envisioned as the crown jewel of the capital market – a sophisticated, independent entity designed to modernise the clearing and settlement system, ensuring transparency and enabling the high-volume trading characteristic of advanced global bourses.

Incorporated in 2019 with significant fanfare, it was meant to segregate the settlement process from the stock exchanges, thereby reducing systemic risk.

Now, nearly seven years after its inception, the institution has transformed from a beacon of reform into a stagnant "white elephant," described by market participants as a costly burden that has failed to execute even its most basic functions.

Despite a substantial paid-up capital of Tk300 crore, the company has yet to begin operations. It remains trapped in perpetual inertia, lacking both the necessary software to run a clearing system and the mandatory registration from the Bangladesh Securities and Exchange Commission (BSEC) to conduct core business.

This failure has directly affected the Dhaka Stock Exchange (DSE), which continues to struggle under an aging settlement framework, preventing the market from achieving the speed, transparency, and transaction volume required for a modern economy.

Capital in limbo

Financial data reveals that CCBL has essentially operated as a fund management firm rather than a clearing house. Its office expenses are met through interest income from fixed deposit receipts (FDRs). The company maintains roughly Tk281 crore in FDRs across 14 banks. Alarmingly, Tk20 crore of this capital is held in the non-viable Exim Bank, alongside an additional Tk20 crore investment in Exim Bank bonds.

This exposure to a struggling financial institution has raised serious questions about the fiduciary responsibility of CCBL's management and board, according to market insiders.

Governance in Question

The governance structure of CCBL has become a subject of ridicule among market stakeholders. The company currently has a top-heavy board of 10 members, yet actual management is handled by a skeleton crew of only four officers.

Mominul Islam, chairman of the DSE, told The Business Standard that CCBL was established with what he calls "non-practical ambition." He said that since its 2019 incorporation, the company has remained non-functional, prompting DSE shareholders to fundamentally question its continued existence. As a primary investor, the DSE is no longer willing to wait for a miracle.

DSE voices frustration

To address these grievances, DSE leadership recently met with Anisuzzaman Chowdhury, special assistant to the chief adviser and chairman of the committee formed to strengthen the capital market. High-level government officials and BSEC representatives were present, where the DSE formally raised concerns regarding CCBL's inactivity.

According to Mominul, the government has requested precise recommendations on the entity's future. In response, the DSE is seeking legal counsel to determine whether the current CCBL structure is salvageable or has become a redundant obstacle.

Mominul further criticised the flawed process through which CCBL was created, comparing it unfavourably to international models.

He said in Sri Lanka, a clearing and settlement company was formed under the stock exchange's umbrella for an initial three-year period to ensure functionality before gaining independence. In Bangladesh, however, CCBL was pushed into independence without a functional foundation, resulting in unnecessary costs and a complete lack of progress.

Flawed design

The sentiment is echoed by Minhaz Mannan Emon, a shareholder director of the DSE, who argues that CCBL was designed incorrectly from the start. He said the board was populated by independent directors who lacked the technical expertise to run a highly specialised clearing and settlement business. This deficiency, he contends, is the primary reason CCBL could not secure regulatory registration in seven years.

Emon highlighted that the DSE invested Tk135 crore in the entity – money effectively belonging to brokerage houses. "Had this capital remained as an FDR under the DSE's control, it would have generated over Tk100 crore in interest over the last seven years. Instead, the DSE has watched its investment erode in a non-functional venture."

Stakeholders demand action

Frustration is compounded by CCBL management's failure to submit a viable action plan when requested by the BSEC last year. Market leaders like Emon now believe the DSE is more capable of running the clearing and settlement business independently. Calls for winding up CCBL are growing louder, as stakeholders refuse to continue "dumping money" into an institution lacking a roadmap.

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), said the 250 members of the DSE demanded full ownership of CCBL during the last annual general meeting.

In a formal letter, the brokers argued for a drastic reduction in CCBL's paid-up capital, calling the current Tk300 crore an excessive waste.

The DBA also called for immediate separation of management from the board and the recruitment of qualified professionals to replace the "ridiculous" setup of ten directors overseeing four employees.

Suspicious procurement

Adding to the controversy are allegations of suspicious procurement decisions. Sources indicate that a previous board planned to purchase clearing software from Tata Consultancy Services Limited (TCS) for a staggering $12 million.

The DSE raised concerns that the price was significantly above the market rate and posed potential security vulnerabilities to the country's critical technology infrastructure. The BSEC intervened to halt the procurement, yet the incident left lingering doubts about the entity's past decisions.

Ownership concerns

The ownership structure is also under scrutiny. While the DSE, Chittagong Stock Exchange (CSE), and Central Depository Bangladesh Limited (CDBL) hold the majority of shares, a significant portion is distributed among various banks, including National Bank, NCC Bank, and others.

Among these, Social Islami Bank and Global Islami Bank became non-viable due to massive irregularities and have since merged into Sammilito Bank. Market participants question why these banks, many with their own governance issues, were given stakes in a critical market utility like CCBL.

CCBL officials declined to comment to The Business Standard.

Lease term and settling loans have emerged as challenges centring the shifting the authority of Savar Tannery Industrial Estate to the Bangladesh Export Processing Zones Authority (Bepza) from the Bangladesh Small and Cottage Industries Corporation (Bscic) over compliance.

The barriers include the lease term of land under the Bepza, how the loans taken from various banks and financial institutions during the Bscic period be settled, and how new charges are determined for the operation of the Central Effluent Treatment Plant (CETP).

Stakeholders involved in the industry said that several tannery owners in Savar have huge outstanding debts, amounting one thousand to one and a half thousand crore taka.

Before handing over to the industrial park Bepza, the tannery owners demanded special rescheduling benefits, including waiver of interest on these loans.

Ashik Chowdhury, executive chairman of Bangladesh Economic Zones Authority (Beza) and the Bangladesh Investment Development Authority (Bida), told The Business Standard, "A roadmap for the Savar Leather Industrial City has been prepared and submitted to the Ministry of Industries after discussions with stakeholders. Now, the Ministry of Industries will make the final decision on this matter."

Recently, the high-powered committee, formed by the government to prepare a roadmap regarding the control of the industrial park, has submitted a report with some recommendations.

The Savar Industrial Park was developed on 199.40 acres of land as part of a government initiative to relocate tanneries from Hazaribagh and curb environmental pollution, setting up a CETP on 17.30-acre of land with sewage treatment plants and dumping yards to treat 25,000 cubic metres of waste.

The construction work of the project was scheduled to be completed in 2005 after beginning two years back. However, the deadline was extended 12 times, and costs increased from Tk175 crore to Tk1,015 crore before it was formally completed in 2021.

According to sources at the government-formed committee, the CETP has been unable to treat more than 15,000 cubic metres of effluent per day due to shortages of skilled personnel and technical expertise. Solid waste management is another major concern, with large volumes of leather waste contributing to environmental pollution and loss of potential economic value.

To address these issues, the committee headed by Major General (retd) Md Nazrul Islam, executive member of Bepza, was formed in August last year.

Speaking to TBS, he said the most critical issue is the heavy debt burden on tannery units as many operators borrowed heavily but failed to achieve viable production, raising difficult questions about how the government should deal with liabilities of non-operational units.

Highlighting the importance of a strong and effective management structure, he said that a strong body is badly needed to govern such the estate.

Acknowledging complexities in completing the process, a committee member said balancing the interests of tannery owners, finished leather producers, and regulatory bodies are challenging, particularly given the unresolved debt and liability issues.

Leather Development Forum (LDF) Coordinator Taherul Islam said the Bepza management could significantly increase effluent treatment costs, potentially raising CETP charges from the current Tk40–60 per cubic metre to more than Tk200 per cubic metre.

Such an increase, he warned, would be commercially unviable for most tannery operators and highlighted legal complications arising from differences in land-leasing policies.

While Bscic provides 99-year lease deeds, Bepza generally offers 30-year rental agreements, which could create contractual and legal hurdles during any transition, he said.

Ferdaus Ara Begum, chief executive officer of Business Initiative Leading Development (BUILD), described the process as a positive step, citing Bepza's track record in managing export processing zones in Dhaka, Cumilla, and other regions.

She said Bepza is widely regarded as one of Bangladesh's most successful institutions, particularly in operating CETPs, and its experience could improve effluent management at Savar.

However, the BUILD chief executive cautioned that several structural and contractual issues need to be resolved.

Tannery workers decry wage non-implementation a year after declaration

Bscic Chairman Md Saiful Islam said the estate will be governed according to government decisions based on the committee's recommendations.

Md. Shakawat Ullah, senior vice chairman of the Bangladesh Tanners Association (BTA), told TBS that tannery owners have taken a 99-year lease from the BSCIC to construct facilities, and currently, about 141 units are in production there.

"During a discussion with us, it was informed that the industrial city will be considered a specialised industrial area and the industrial units will operate under the existing rules and regulations of Bscic. However, matters such as CETP and waste management may be handled through separate arrangements, for which a prescribed fee will be collected from the industrial owners," he claimed.

With the transfer of management, clarity is needed on whether this supply system, NBR-related issues, he said.

Regarding the loan-related challenges, Shakwat said that since 2017, many tannery owners have been unable to run their businesses normally, causing a huge burden of loans and interest.

He said that these issues have also been included in the set of recommendations and that later, discussions with the Ministry of Finance could be held to find solutions.

Mining bosses like BHP’s Mike Henry should, in theory, be digging right now. Copper prices have surged 50 percent over the past year, topping $13,000 per metric ton on the London Metal Exchange on Thursday — well above the $11,000 mark that typically justifies constructing new mines. The catch? Soaring prices rarely stick.

Much of copper’s recent record rally reflects temporary factors. Traders are stockpiling ahead of potential US tariffs due in June, while top producers such as Rio Tinto and Freeport-McMoRan have cut their production forecasts because of idiosyncratic problems at key sites. The resulting squeeze has proved enough to drive short-term prices higher, but it may not last. Richer margins encourage more collection and processing of recycled copper, boosting supply over time. Tariff fears also cut both ways: if US President Donald Trump backs off, prices could tumble fast.

Questionable demand is another reason to think prices may fall. China still consumes roughly half of global copper, but the mix of uses is changing. Clean energy and electric vehicles are gaining share: Wood Mackenzie and Bernstein analysis see them making up 12 percent and 9 perecent of global demand, respectively, by 2030, while traditional sources of demand like construction lose steam. The problem is that the newer Chinese sectors remain exposed to policy shifts, implying a slowdown if Beijing shifts its priorities or successfully ends the clean-car sector’s chronic overcapacity. Globally, a much-heralded data centre boom may only help a little: the sector will account for just 1 percent of copper demand by 2030, according to Wood Mackenzie.

That uncertainty helps explain why miners like Anglo American and Teck Resources, or Glencore and Rio Tinto, are chasing M&A instead of breaking ground on new copper sites. The world needs a new supply, but the economics are tight. To make developing a mine economically sustainable, copper prices would have to stay at $11,000, according to consultant Wood Mackenzie. Price forecasts by Morgan Stanley suggest that between now and 2030 it will average around $10,700.

This would leave no room for miners to make a profit on new sites. And the real breakeven number may be higher after factoring in other challenges like securing water and labour, as well as possible permitting delays that can stretch over a decade, according to Morgan Stanley strategist Amy Gower.

Meanwhile, Wood Mackenzie estimates that meeting forecast 2035 demand will require over $210 billion in investment. Yet total capital investment in copper mining from 2019 to 2025 amounted to only around $76 billion. About half of that came from Chinese miners, followed by Russians.

There’s a geographic shift happening, too. The next wave of supply is moving beyond Latin America and Central Africa into regions like Central Asia, where countries such as Kazakhstan are closer to Beijing. For global miners, record prices are welcome. But in copper, that’s not always enough to justify putting a shovel in the ground.

Three-month forward copper prices on the London Metal Exchange reached a record $13,310 per metric ton on January 15.

Oil prices settled higher on Friday as some investors covered short positions ahead of the three-day Martin Luther King holiday weekend in the US and lingering worries about a possible US military strike against Iran.

Brent crude settled at $64.13 a barrel up 37 cents or 0.58 percent. US West Texas Intermediate finished at $59.44 a barrel up 25 cents, or 0.42 percent.

Most of Friday’s gains seemed to be due to buying supply ahead of the long weekend, said John Kilduff, partner with Again Capital LLC.

“With that carrier strike group making the move to the (Persian) Gulf, it doesn’t seem likely anything will happen soon,” Flynn said.

The US Navy’s aircraft carrier USS Abraham Lincoln was expected to arrive in the Persian Gulf next week after operating in the South China Sea.

Weighing against those fears are potential supply increases from Venezuela, said Phil Flynn, senior analyst with Price Futures Group.

“The supply from Venezuela has not become the tidal wave that was expected,” Flynn said. “Buying today seems to be people not wanting to be caught short over the long weekend.”

Both benchmarks hit multi-month highs this week after protests flared up in Iran and US President Donald Trump signalled the potential for military strikes, but lost over 4 percent on Thursday as Trump said Tehran’s crackdown on the protesters was easing, allaying concerns of possible military action that could disrupt oil supplies.

“Above all, there are worries about a possible blockade of the Strait of Hormuz by Iran in the event of an escalation, through which around a quarter of seaborne oil supplies flow,” Commerzbank analysts said in a note.

“Should there be signs of a sustained easing on this front, developments in Venezuela are likely to return to the spotlight, with oil that was recently sanctioned or blocked gradually flowing onto the world market.”

Analysts expect higher supply this year, potentially creating a ceiling for the geopolitical risk premium on prices.

“Despite the steady drumbeat of geopolitical risks and macro speculation, the underlying balance still points to ample supply,” said Phillip Nova analyst Priyanka Sachdeva.

“Unless we see a genuine revival in Chinese demand or a meaningful bottleneck in physical barrel flows, oil looks range-bound, with Brent broadly hovering between $57 and $67.”

The country’s ready-made garment (RMG) exports to the European Union (EU) grew 7.65 percent to €18.05 billion (around $20 billion) during the January-November period of last year, compared with the same period in 2024, according to Eurostat, the EU’s official statistical office.

The rise follows a 15 percent increase in shipments to the United States, Bangladesh’s single largest market, during January-October last year amid the reciprocal tariffs.

The new US duties reshaped the apparel trade in the South Asian region, prompting countries with higher US tariffs to divert a large portion of shipments to Europe, often at more competitive prices. This shift intensified competition in the European garment market.

Despite the year-on-year gain, exports to the EU fell 10.87 percent month-on-month to €1.37 billion in November 2025 compared with November 2024. Eurostat data showed that while unit prices for garments fell 3.25 percent, export volumes rose 11.26 percent. Over the 12 months from November 2024, unit prices dropped 12.27 percent.

Bangladesh, the second-largest garment exporter to the EU, is narrowing the gap with China, the world’s largest exporter.

China shipped €24.42 billion worth of garments to the EU in the January-November period last year, up 6.55 percent year-on-year.

In total, the 27 EU member states imported a total of €82.94 billion worth of garments in the first 11 months of 2025, a 3.93 percent increase from the previous year.

Among Bangladesh’s competitors, Turkey’s exports fell 11.31 percent to €7.65 billion, India’s rose 8.31 percent to €4.24 billion, Cambodia’s grew 15.21 percent to €4.14 billion, and Vietnam’s increased 10.10 percent to €4.01 billion.

Pakistan’s shipments rose 10.46 percent to €3.54 billion, Morocco’s fell 0.18 percent to €2.52 billion, Sri Lanka’s grew 6.43 percent to €1.25 billion, and Indonesia’s rose 3.30 percent to €0.90 billion, according to data.

Local exporters have urged the government to intensify negotiations with the EU to secure GSP Plus status. Bangladesh’s current Generalised Scheme of Preferences (GSP) benefits under the Everything but Arms (EBA) initiative will expire in 2029.

The country is set to graduate from least developed country (LDC) status to a developing nation on November 24. The EU will maintain current GSP benefits for a transitional period of three years.

To qualify for GSP Plus, Bangladesh must comply with 32 international conventions covering human rights, labour standards, environmental protection, and good governance. GSP Plus would guarantee duty-free access to the EU market after graduation. Without it, Bangladesh could face tariffs of over 12 percent, potentially reducing competitiveness.

Studies suggest losing GSP Plus could cost Bangladesh roughly 14 percent of its exports in a year, equivalent to $8 billion. Currently, 73 percent of the country’s export earnings rely on GSP-related trade facilities, and Bangladesh alone enjoys 67 percent of the trade benefits available to all 44 LDCs.

Oil prices plunged on Thursday after fears over instability in Iran were eased by comments from US President Donald Trump.

West Texas Intermediate dropped 3.0 percent to $60.16 per barrel while Brent crude was down 2.93 percent to $64.57, after Trump said he had been told the killings of protesters in Iran had been halted.

In a surprise announcement at the White House, the US president added that he would "watch it and see" about threatened military action.

"They've said the killing has stopped and the executions won't take place -- there were supposed to be a lot of executions today and that the executions won't take place -- and we're going to find out," he said.

Trump had repeatedly talked in recent days about coming to the aid of the Iranian people over a crackdown on protests that rights groups say has left at least 3,428 people dead.

Concern that the situation could restrict supplies of crude had caused oil prices to rise around 1.5 percent on Wednesday.

"Oil prices dropped... on comments from US President Donald Trump that Iran would refrain from any further killing of protesters, watering down fears of a looming supply shock in energy markets," said Kyle Rodda of Capital.com.

Iran makes up three percent of global oil production, analyst Michael Wan of financial group MUFG noted this week.

Wan said Thursday that Trump's latest comments "come even as the United States has redeployed some personnel in Qatar and other American bases from ongoing geopolitical tensions and possible Iranian threats to target those locations".