Padma Bank, formerly Farmers Bank, slid into long-term insolvency after large-scale lending irregularities, failed state bailouts and continued governance failures, leaving it unable to recover defaulted loans or restore capital.

How it happened:

The bank began facing severe financial stress soon after its establishment in 2013 because of large-scale lending anomalies.
By 2018, the situation had worsened to the point where four state-owned banks and the Investment Corporation of Bangladesh injected Tk715 crore as a bailout.
State-owned banks later provided a further Tk1,000 crore through subordinate bonds and fixed deposits.
Despite these public investments, the bank failed to recover money from defaulters, allowing capital erosion to continue.
Governance problems persisted even after the board was reconstituted under the bailout package.

90% default loans, insolvent for years – Padma Bank merger still not in sight

Chowdhury Nafeez Sarafat was appointed chairman in January 2018 after former chairman Muhiuddin Khan Alamgir resigned amid allegations of financial scams.
Sarafat allegedly siphoned money from the bank to his firm, Bangladesh RACE Asset Management, further weakening the bank's financial position.
Like his predecessor, Sarafat later resigned after failing to restore the bank's financial health.
Neither Sarafat nor Alamgir has faced legal action over the alleged financial plundering.
By June 2025, Tk5,131 crore of the bank's Tk5,598 crore in loans had turned non-performing, accounting for more than 91% of total loans.
The bank recorded negative shareholder equity of Tk4,533 crore, meaning its liabilities exceeded its assets.
Continued operating losses further deepened the bank's insolvency.
The bank also accumulated Tk683 crore in dues to Bangladesh Bank, including penalties and shortfalls in maintaining mandatory cash and liquidity reserves.

A joint venture led by listed firm Shasha Denims is set to invest Tk350 crore to build the Ghorashal Inland Container Depot (ICD) in Ghorashal, Narsingdi, according to a stock exchange disclosure.

The depot will be developed under a design, build, finance, operate, maintain and transfer model and operated as a public-private partnership with Bangladesh Railway.

The joint venture has already signed a 30-year concession agreement with Bangladesh Railway and disclosed the investment plan through a filing on Sunday.

The project is being undertaken by Container Company of Bangladesh Limited (CCBL), to establish a multimodal inland container depot on 20 acres of land to handle import and export cargo from Chattogram and Mongla ports.

To implement the project, a special purpose company named "Ghorashal ICD and Port Limited" has been formed, in which Shasha Denims currently holds a 90% stake, the disclosure said.

The company added that the shareholding structure may change in future with the inclusion of strategic investors to strengthen the project's technical and financial capacity.

Aslam Ahmed Khan, company secretary of Shasha Denims, told TBS that the company has initially taken a 90% stake, but the ownership structure will evolve once strategic partners are brought in.

Previously, he said, "The depot will be built on 20 acres of land owned by Bangladesh Railway. The railway will only provide the land on a rental basis for 30 years, and in return, the railway will receive 15% of the total revenue."

The company expects construction to be completed by 2028, after which commercial operations will begin, he added.

In January 2024, CCBL, a government-owned company under the Ministry of Railway, floated a tender to build the multimodal inland container depot, seeking interest from local and foreign investors.

Earlier reports by TBS said the project failed to attract bidders despite two rounds of tenders, prompting CCBL to prepare for a third bidding attempt.

The project aims to ease the movement of export-import cargo to and from Chattogram and Mongla ports and is being implemented by CCBL, a subsidiary of Bangladesh Railways.

Shasha Denims is one of the leading listed textile companies, with an annual turnover of about Tk1,000 crore. In FY25, the company posted consolidated revenue of Tk1,128 crore, marking a 0.91% year-on-year decline, while profit fell 12.54% to Tk21.68 crore, with earnings per share of Tk1.57.

The board recommended a 5% cash dividend for shareholders. In the first half of the current fiscal year, revenue declined 2.33% year on year to Tk617.40 crore, while profit dropped 52% to Tk8.02 crore.

Today, Shasha Denims shares closed at Tk16 each, up 4.58% from the previous trading session.

Summit Alliance Port Limited, one of the country's leading inland container terminal and logistics operators, reported a sharp decline in revenue and profit in the first half of FY26, primarily due to a slowdown in export-related container handling and lower freight rates.

According to its price sensitive statement, the company's consolidated revenue fell by 28% year-on-year to Tk322 crore in the July–December period of FY26, while consolidated net profit dropped by 37% to Tk22.82 crore. As a result, consolidated earnings per share stood at Tk0.96, compared to a stronger performance in the same period of the previous fiscal year.

The company's consolidated net asset value per share also declined, slipping to Tk34.47 from Tk35.67 a year earlier.

Summit Alliance Port attributed the weaker performance largely to the downturn in its subsidiary Container Transportation Services Limited (CTSL), which experienced lower net profit during the reporting period due to reduced cargo volumes, a fall in freight rates and the absence of dividend income from subsidiaries.

The elimination of dividend income amounting to Tk17.32 crore further weighed on overall profitability during the first half of the fiscal year.

The half-yearly financial report showed that earnings from air and sea freight export handling under Container Transportation Services fell significantly by 38% to Tk198 crore. The decline reflects subdued export activity and intense competition in the freight forwarding segment, which compressed margins despite the company's efforts to expand its service offerings. Container Transportation Services continues to remain the primary revenue driver for Summit Alliance Port, making the group's overall performance highly sensitive to changes in export volumes and global trade conditions.

According to the Export Promotion Bureau, overall export earnings during the July-December period declined 2.19% to just under $24 billion.

Established in 2013, Container Transportation Services initially focused on domestic transportation but later diversified into freight forwarding after obtaining a customs licence in June last year. The company has since been positioning itself as an integrated logistics service provider, catering to both domestic and international clients. As part of this strategy, CTS partnered with Germany-based Hellmann Worldwide Logistics as its local agent, aiming to tap into global freight networks and strengthen operational capabilities.

In January 2025, Summit Alliance Port announced a strategic partnership with Hellmann Worldwide, under which the German logistics firm subscribed to 3.33 lakh new CTS shares at Tk66.50 each. The collaboration was designed to enhance the group's international reach and improve efficiency across South Asia. However, the benefits of this partnership have yet to fully offset the impact of weaker export demand and lower freight rates in the current reporting period.

Summit Alliance Port's shareholding structure includes Alliance Holdings with a 23.48% stake and Summit Holdings owning 8.07%. Among individual sponsors, Alliance Holdings founder and Summit Alliance Port Managing Director Jowher Rizvi holds 5.48% of the shares, while Summit Group Chairman Aziz Khan owns 7.03%.

Business Research International Corporation (BRIC) is set to establish a large-scale agro-processing industry in the Jamalpur Economic Zone (JEZ) with an investment of approximately $5.32 million.

A land lease agreement was signed today (2 February) between the Bangladesh Economic Zones Authority (BEZA) and BRIC at the BEZA office in the city, according to a press release.

Executive Member (Investment Development) and Additional Secretary Saleh Ahmed signed the agreement on behalf of BEZA, while Director and Vice President Mishal Karim signed on behalf of BRIC.

Under the agreement, a modern agro-processing plant will be established and operated as a joint venture, with a focus on promoting markets for locally produced agricultural goods. The initiative aims to strengthen the country's agro-based industrial sector and expand production for both domestic and export markets.

BEZA said BRIC will invest about $5.32 million in the proposed project on five acres of land. The project will be an export-oriented and environmentally friendly industrial venture, requiring relatively low water, electricity and gas consumption.

The company plans to start commercial production within three years. Its products will include paste, pulp, puree, juice and beverages, and spices. More than 50% of raw materials will be sourced locally.

The project is expected to create significant local employment. BRIC intends to export 15% of its output, which is expected to strengthen Bangladesh's competitiveness in international markets through modern technology and quality production.

Such investment is expected to accelerate industrialisation in the agriculture sector, boost exports, create new jobs, and contribute to sustainable economic growth in the region.

Congratulating the company, Saleh Ahmed said the JEZ is set to become a plug-and-play economic enclave.

"A leading company is expected to start production here soon," he said.

Referring to BRIC's investment, he said it was "an example of BEZA's environmentally friendly industrial initiatives" and expressed hope that "such agro-processing projects will encourage more local and foreign investors to invest in the JEZ."

The JEZ is the first government economic zone under implementation in the Mymensingh division. The zone will be developed on a total area of 436 acres and is expected to create direct employment opportunities for around 32,000 people once fully implemented.

According to the feasibility study, the zone is suitable for agro-based industries, light engineering, garments and other sectors. Key infrastructure, including gas connections, a 33/11 kV power substation, administrative and dormitory buildings, land development, a groundwater reservoir and boundary walls, has already been completed.

So far, lease agreements have been signed with 18 companies to set up industries in the zone. Construction work is currently underway for six industrial units, including a skills development centre.

US dollar purchases by Bangladesh Bank from the forex market have surpassed $4 billion so far in fiscal year (FY) 2025-26.

The banking watchdog yesterday bought $218.50 million from 16 commercial banks at a cut-off rate of Tk 122.30 per US dollar, according to official data.

This is the first US dollar purchase by the banking regulator in February.

Overall foreign exchange purchases in the ongoing fiscal year have reached $4.152 billion, reflecting continued efforts by the central bank to manage liquidity in the foreign exchange market and stabilise the exchange rate.

The central bank has been actively buying the American greenback from the market in recent months amid improved inflows and easing pressure on the foreign exchange market, officials said.

BB, which sold more than $25 billion from its foreign exchange reserves between FY21 and FY25 to help cover imports of fuel, fertiliser, and food, has begun purchasing US dollars since the start of this fiscal year as supply has increased due to higher exports and remittances.

Since early July, the Bangladeshi taka has gained against the dollar.

Bangladesh’s forex reserves have continued to rise due to the central bank’s consistent USD purchases.

Bangladesh’s gross foreign exchange reserves stood at $33.18 billion as of January 29 this year, according to BB data.

However, the figure stood at $28.68 billion under the International Monetary Fund’s Balance of Payments and International Investment Position Manual (BPM6).

Masudur Rahman, who has been investing in stock for nearly 20 years, was hopeful that at least a few state-run firms would be listed on the stock market soon, as the interim government directed authorities to do so. To his dismay, no new state-run companies were listed.

On May 11 last year, Chief Adviser Prof Muhammad Yunus gave five directives to revitalise the capital market. His directives included offloading shares of well-performing state-owned companies and listing them on the stock market, offering shares in multinational firms to the public, and offering incentives to non-listed companies that perform well, encouraging them to go public.

Around nine months have lapsed, yet the directive to list well-performing state-owned companies was not fulfilled.

Similar attempts to list state-run companies were taken by finance ministers working for the previous government, but they also could not make much headway.

“I thought the interim government would keep the bureaucrats under pressure this time, and they would be compelled to follow the directives,” Rahman said.

As per the Dhaka Stock Exchange (DSE) data, Bangladesh Submarine Cables PLC (BSCPLC) was listed on the stock market back in 2012. Since then, no other state-owned companies entered the capital market.

During the last decade, many junk or low-performing companies entered, causing the share market to become highly volatile. The chief adviser at a meeting gave the five directives to officials, including the finance adviser, the finance secretary and the Bangladesh Securities and Exchange Commission (BSEC) chairman, to bring dynamism into the stock market.

Attempts were made by the authorities to complete the directives, but progress was stalled at some point, and none of the five goals were reached.

Shortly after the May meeting, the finance ministry ordered all relevant ministries to prepare their state-owned enterprises for listing.

Abul Kalam, spokesperson of the BSEC, said that to ensure offloading shares of state-run companies and multinational companies, a potential list has been made, and the Financial Institutions Division (FID) ordered firmly that concerned ministries bring them to the market.

“The BSEC has done all they could. The next steps will have to be taken by the concerned ministries. But that’s where the progress stalled,” he said.

Another of the CA’s directives was to offer incentives to bring well-performing local companies into the market. No such incentive was also seen from the National Board of Revenue or any other authorities.

The BSEC has done its part in amending IPO rules so that good companies can get a fair price from investors.

Another order was to include foreign experts in the market reform activities. No such steps were taken.

Authorities were directed to take measures to encourage large borrowers to raise capital from the stock market by issuing equity and bonds. No progress was seen there either.

Following the CA’s directive, the BSEC has taken several strict punitive measures against those involved in corruption and market manipulation.

Saiful Islam, president of the Dhaka Stock Exchange (DSE) Brokers Association of Bangladesh, said that in realistic terms, no decision has been implemented in the last nine months despite the order coming from the head of the government, especially regarding the listing of state-run companies and multinational companies.

“It is extremely frustrating for us.”

He noted that the lack of implementation of those directives was a regulatory failure.

“The caretaker government’s tenure was a golden opportunity to implement these decisions on the listing of state-run firms for the betterment of the capital market. During any political government, such measures are difficult to implement, mainly due to non-cooperation from the bureaucracy,” he said.

“Adding at least 4-5 state-run companies within this period would have been a boost for the market,” he added.

Abul Kalam said the BSEC, Financial Institution Division and Anisuzzaman Chowdhury, a special assistant to the chief adviser, tried their best to implement the directives. A joint committee was formed, and it submitted a report to the government, outlining the necessary measures to be taken to incentivise the well-performing local companies. The Bangladesh Bank (BB) governor has said in a meeting that the government will push forward those measures.

The BB and BSEC are taking steps to make the bond market vibrant, the BSEC spokesperson added. However, such measures cannot be completed overnight, and a guideline to implement the measures was made.

Regarding the matter of appointing a foreign expert, he said, “A directive came from the higher-ups that the inclusion of a foreign expert would be time-consuming.”

In light of the situation, the responsibility was given to an academician who has foreign expertise as well as local experience.

“What else can the BSEC do?” the spokesperson said, stressing that the BSEC and the FID have taken all possible necessary steps.

While the BSEC has been diligent in following its part of the directives, the completion of the measures halted due to bureaucracy in the concerned ministries, causing stock investors to lose hope in any further progress.

Bangladesh Bank Governor Ahsan H Mansur has said that state-owned commercial banks disburse loans but have consistently failed to recover them on time, a weakness that has kept credit growth in the sector constrained for decades.

Speaking as a special guest at the Sonali Bank Annual Conference 2026 at the International Convention City Bashundhara today (2 February), the governor said long-standing structural problems had limited the role of government banks in the economy.

"If loans can be given to the right customers, those loans will no longer remain unrecovered," he said.

He noted that various restrictions had been imposed on government banks, including Sonali Bank, which were still in effect.

"Government banks can give loans, but they cannot recover them. For this reason, the flow of credit had to be contracted," he said.

He added that credit growth at state-owned banks had remained constrained since before 2000, which he described as an unsustainable model.

The governor said banks that mobilise deposits must also be able to channel those funds into productive economic activities.

"If a bank collects deposits and we cannot contribute that to the macro-economy, then our achievement will be diminished," he said.

He said Sonali Bank had been cautious in loan disbursement but now needed to strike a balance.

"Sonali Bank is distributing loans with great caution. I think now loans must be distributed with a bit of courage along with that," he said.

Ahsan H Mansur also pointed to the limited role of state-owned banks in consumer lending.

"The consumer lending sector is an important sector. In other countries, house lending is a very large sector, but the government banks of our country are unable to make any major contribution," he said.

He said Sonali Bank should be transformed into a fully commercial institution.

"Currently, Sonali Bank is operating as a partial commercial principal bank. It must be developed into commercial banking on a larger scale and become more profit-oriented," he said.

According to the governor, profits earned by the bank could help reduce its capital deficit and meet future capital and provisioning requirements, eventually enabling it to pay dividends.

He added that the government would give Sonali Bank the freedom to operate on true commercial principles and said future governments would maintain that approach.

He also stressed the need to increase remittance inflows, noting that Sonali Bank plays a significant role in opening letters of credit for the government.

The governor said Sonali Bank's non-performing loan ratio was at a "tolerable level" and had improved from earlier figures.

"I can expect it to decrease a bit more," he said, adding that loan disbursement needed to rise.

"If Sonali Bank takes Tk2 lakh in deposits, then 80% of that must be distributed as loans," he said, while emphasising the need for careful borrower selection.

He said banks must identify capable entrepreneurs at the grassroots level, particularly among small and medium enterprises, and strengthen support for export-oriented activities.

Bangladesh's merchandise-export earnings during the first seven months of the current fiscal year stayed on a negative growth trajectory as main earner garment shipments to major EU countries and other destinations contracted.

Germany and France are among the major destinations in the European Union (EU) where apparel faced a setback, being undercut by big peers in their shift away from the tariff-walled United States, industry sources said, as the latest export-performance results published.

The single-month merchandise-export earnings in January 2026 for the sixth consecutive month, on a year-on-year basis, also registered negative growth compared to the same month in 2025, according to the data released Monday by Export Promotion Bureau (EPB).

Bangladesh earned US$28.41 billion during the July-January period of the fiscal year 2025-26, reflecting 1.93-percent year-on-year negative growth against $28.96 billion in the corresponding period of last fiscal.

In the just-past month, January, the country's export earnings stood at $4.41 billion which was slightly or 0.50-percent lower than the earnings worth of $4.43 billion in January 2025.

Exports went on a year-on-year negative growth in August 2025, when the country recorded a 2.93-percent fall.

The climb-down was followed by a decline of 4.61 per cent, 7.43 per cent, 5.58 per cent and 14.25 per cent in September, October, November and December respectively.

Of the total January earnings, RMG fetched $3.61 billion, logging a 1.35- percent negative growth compared to that in the same month of 2025, the EPB data revealed.

As usual, RMG maintained its leading position, contributing $22.98 billion-notwithstanding a 2.43-percent negative growth - to the total export earnings during the first seven months of the current fiscal year.

Within this clothing segment, knitwear exports fell by 3.13 per cent to $12.28 billion, while that of woven garments declined by 1.60 per cent to $10.69 billion.

Sources say while the strong performance in July reflects resilience, the slowdown since August highlights challenges for Bangladesh's export sector amid fluctuating global demand and evolving market dynamics.

Exporters, however, attribute the country's negative export growth to weakening global demand, the imposition of reciprocal tariffs by the United States and China's increased focus on markets where Bangladesh is competitive.

They also say cutthroat global competition, rising production costs, and ongoing geopolitical and trade uncertainties have created significant external pressures, contributing to the current challenges in Bangladesh's export performance.

Talking to the FE, Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said December-to-February "is usually the season of summer orders compared to that of winter and previously there had been growth during the period".

Export still was in negative territory which according to him is not good.

MA Rahim, vice chairman of DBL Group, says buyers usually hold some of their work orders before two to three months prior to the national election and they observe the situation for at least one month after election.

He expects that buyers would come back with the orders they hold temporarily or shifted to other places once a stable political situation sustains after the election.

The US tariffs have changed the overall market dimension with decline in sales there and so decrease in placing work orders, exporters say. Moreover, China and India to offset US tariff impacts are "snatching away the work orders by offering 'aggressively low rate'".

The Indian government has also incentivised with new packages to support its exporters targeting US high tariffs whereas Bangladesh government has been withdrawing the given benefits, including cuts in incentives "in the name of LDC graduation", they lament.

They, however, expect good days ahead after the national elections, saying that the situation might change with elected government provided with required and expected policy supports in consultation with businesses.

The July-January breakdowns show home-textile exports rose 3.26 per cent year on year to $509.97 million.

Leather and leather products earned $707.24 million, up 5.71 per cent.

The agricultural sector saw a 9.88-percent negative growth to $607.28 million.

Jute and jute goods exports reached $493.85 million, marking 1.97-percent growth during the period of 2025-26 fiscal.

Frozen and live fishes recorded 4.94-percent growth to fetch $297.56 million during the first seven months of fiscal 2025-26.

Pharmaceutical exports grew by 5.03 per cent to $139.10 million.

Meantime, Bangladesh's overall exports to its major billion-dollar destinations like Germany, France, Italy, Denmark, India and Japan fell 10.35 per cent, 11 per cent, 5.46 per cent, 10.40 per cent, 4.98 per cent and 2.78 per cent during the July-January period of 2025-26.

In FY25, Bangladesh exports fetched $48.28 billion, riding on $39.34 billion earnings from RMG.

Global inflation is expected to fall to 3.8% this year and to 3.4% in 2027, helped by softer demand and lower energy prices, the IMF chief said on Monday.

Managing Director Kristalina Georgieva said in a speech in the Annual Arab Fiscal Forum in Dubai that global growth has held up 'remarkably well' amid profound shifts in geopolitics, trade policy, technology, and demographics.

The Capital Market Stabilization Fund (CMSF) will now have to keep all its funds in a bank account and manage them in a risk-free manner, according to a draft of the Capital Market Stabilisation Fund Ordinance published yesterday on the Financial Institutions Division website.

Established by the Bangladesh Securities and Exchange Commission (BSEC) in 2021, the CMSF holds undistributed cash and stock dividends, non-refunded public subscription money, and unallotted rights shares of listed securities.

These assets are intended to be returned to shareholders or investors based on verified claims at any time. Until then, they are to be used to maintain stability in the capital market.

The new draft ordinance specifies that all funds must remain in a bank, while all shares must be held with the fund’s own depository participant. Any costs will be covered from the fund’s profits, keeping both the funds and shares intact.

The fund will be overseen by a seven-member board of governors, with the BSEC chairman serving as the board’s chair
The draft ordinance also protects the government, government officials, the BSEC chairman, commissioners and officials, and the fund’s board of governors and staff from any legal action if losses occur while implementing the rules in good faith.

The fund will be overseen by a seven-member board of governors, with the BSEC chairman serving as the board’s chair. Other members will include a BSEC commissioner, an additional secretary from the Financial Institutions Division, the president of The Institute of Chartered Accountants of Bangladesh, the president of the Bangladesh Association of Publicly Listed Companies, and a managing director of a stock exchange. The fund’s chief executive officer will act as the member secretary.

The fund will act as a custodian for investors, returning money upon proper claims. It will also support financial literacy initiatives and conduct research to raise awareness among investors.

Its financial statements must follow International Financial Reporting Standards, and audits must be completed within 90 days after the end of each financial year.

Under the draft ordinance, any cash dividend announced by a company but unclaimed for more than three years must be transferred to the CMSF.

Finance Adviser Salehuddin Ahmed today (2 February) said that while the interim government has made concerted efforts to stabilise the national economy, the challenges lying ahead remain formidable and complex.

Several significant hurdles persist that will require rigorous navigation, said the adviser while addressing the Sonali Bank Annual Conference 2026 as the chief guest at the International Convention City Bashundhara (ICCB) in Dhaka.

He emphasised that the future economic environment would demand resilience and a strategic approach to overcome these difficult phases.

Addressing the Sonali Bank officials, Salehuddin stressed the importance of standing as a fully professional institution.

He remarked that as a new government (elected) will eventually take over, the bank's management must work tactfully to maintain its standards.

Salehuddin Ahmed cautioned that while political and bureaucratic obstacles might arise, officials should not dismiss them casually but rather negotiate them with professional integrity.

He further advised the bank's officials on how to interact with policymakers and politicians, as he suggested that instead of an outright refusal to comply with questionable demands, officials should explain the established financial norms, audit requirements, and accounting standards that govern such institutions.

The finance adviser also urged Sonali Bank to extend its support to businesses, highlighting the necessity of financing for all types of enterprises, ranging from small-scale ventures to large industries.

He expressed his expectation that the bank would play a proactive role in fostering trade and commerce through adequate financing.

The finance adviser observed that while the overall banking sector faces various difficulties, the performance of Sonali Bank and a few other private banks remains commendable.

Bangladesh Bank (BB) on Monday purchased $218.50 million from 16 commercial banks through multiple auction methods as part of its ongoing strategy to curb the depreciation of the US dollar against the taka and revitalise the remittance and export sectors.

According to central bank data, it bought dollars today at the rate of TK 122.30.

Accordingly, total purchases stood at $218.50 million in January 2026 and $4,152 million in FY 2025–26 till to date.

BYD's vehicle sales fell by 30.1 percent in January from a year earlier, the fifth straight month of decline, as the Chinese electric vehicle maker navigates external uncertainties and tough competition at home.

The automaker sold 210,051 vehicles globally last month, a stock market filing on Sunday showed. The export volume of new energy vehicle was at 100,482 units for the month of January.

Its production was down 29.1 percent, extending a losing streak which began July last year.

At home, BYD launched upgraded new versions of a number of plug-in hybrid models with long-range batteries last month, aiming to boost the appeal of its affordable hybrid models.

Sales of plug-in hybrid cars, which made up more than half of BYD's total car sales, fell 28.5 percent in January, extending a trend after they fell 7.9 percent in 2025.

BYD said in January it has targeted 1.3 million vehicles in overseas shipments for this year, suggesting a 24 percent increase from 2025 but lower than an earlier goal of up to 1.6 million vehicles its management told Citi in a meeting in November.

The company did not give reasons for the downward revision.

Its new EV plant in Hungary is expected to come online this year, adding to its manufacturing in Brazil and Thailand. It also has planned assembly plants in Indonesia and Turkey.

A 150.7 percent surge in sales abroad helped BYD unseat Tesla as the world's top EV vendor last year, offsetting mounting pressure in its home market, notably from Geely and Leapmotor in the budget segment.

BYD narrowly met its slashed global sales target of 4.6 million units last year. It has not announced the 2026 target.

The world's largest auto market is expected to deal with stagnation this year as the Chinese government scales back subsidies for trading in lower-priced models, weighing on BYD and its peers betting on budget cars.

Chinese officials are promoting the launch of a free-trade port on the tropical island of Hainan as a major step in opening the economy to foreign investors, even as global trade tensions rise and protectionism increases elsewhere.

Officials describe the transition to what they call the world's largest free-trade port as a "substantial leap" in China's efforts to open its markets to foreigners. The move, which took effect in December, allows most goods to enter the island without tariffs and offers lower taxes for companies and high earners, says the Economist.

The free-trade port (FTP) covers an area nearly the size of Taiwan and is about 30 times larger than Hong Kong. Some analysts initially speculated that Beijing aimed to create a new Hong Kong-style hub after President Xi Jinping announced the plan in 2018, though officials say Hainan's ambitions are more limited.

Under the new rules, 74% of goods can enter Hainan tariff-free. Products can be shipped to the mainland without levies if they undergo processing on the island that adds at least 30% of their value. Taxes on firms in strategic sectors and on high earners are capped at 15%, compared with rates of up to 35% and 45% on the mainland. Citizens from 86 countries, including the United States, are eligible for visa-free entry.

Despite policy support, Hainan faces challenges in shedding a long-standing reputation as an economic backwater. Designated China's only province-wide special economic zone in 1988, it has struggled to deliver sustained growth beyond tourism.

In 2024, Hainan's GDP per capita was about 76,000 yuan ($10,900), below the national average and behind most other special economic zones. The province's total GDP, about $114 billion, was among the lowest in China, hindered in part by limited infrastructure links to the mainland.

Supporters argue the island's geographic isolation could be an advantage, allowing Beijing to test reforms without disrupting other parts of the country. One closely watched pilot allows firms to apply for less restricted internet access, enabling users to visit sites such as Google and X that are blocked on the mainland.

President Xi has described the creation of the FTP as a "landmark" move to promote "an open world economy." Li Daokui, a Tsinghua University professor and government adviser, said the experiment would be closely monitored.

"This youngest and bravest student in a cohort is given permission to swim in the deep water," Li said. "Then the whole class would watch what Hainan would do."

Medical tourism is one area the province hopes will benefit. In Boao Hope City, private hospitals are allowed to use foreign-approved drugs and devices not yet authorised in China. Some facilities have struggled to attract patients, while others cater to wealthy Chinese clients.

Manufacturing firms have also shown interest. Mixue, a Chinese beverage chain, has opened a factory to import coffee beans tariff-free and sell processed products on the mainland without additional duties. Swire Pacific is building a Coca-Cola bottling plant for the China market.

However, some executives remain sceptical. "The business case is just not there," said an auto industry executive, citing a lack of talent and well-integrated supply chains.

Local authorities have sponsored visits for potential investors. Lei Jun moved his video-game design firm from Fujian province to Hainan after such a trip, saying he was "won over by the climate and subsidies."

Service industries may offer more immediate opportunities. Chi Fulin, president of the China Institute for Reform and Development, said "Hainan will lead the opening up of the country's service sector."

But he cautioned that change would take time. "You might say that Hainan, where people wear down jackets on top and flip-flops below, has a lot of inertia," Chi said. "Changing these habits is a long-term process. But if the overall environment changes drastically, if it snows heavily, can you still wear flip-flops?"

An additional financing agreement and a grant agreement were signed yesterday between the government of Bangladesh and the International Development Association (IDA) of the World Bank (WB) Group for an amount of US$ 150 million loan and US$0.75 million grant to implement the “Recovery and Advancement of Informal Sector Employment (RAISE) Project.”

The project has been under implementation since 2021 and is scheduled to continue until June 2026 with the World Bank support. The implementation period for the additional financing is until 31 December 2030.

Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division (ERD), Ministry of Finance and Jean Pesme, Division Director of the World Bank for Bangladesh and Bhutan signed the financing agreements on their respective sides. The project is being implemented by the Palli Karma-Sahayak Foundation (PKSF) under the Financial Institutions Division of the Ministry of Finance, said an ERD press release.Finance software

The objective of the project is to provide services that can enhance earning opportunities and employment for low-income urban and rural-youth and youth impacted by Covid-19.

The additional financing comprises a US$150 million loan from IDA and a US$0.75 million grant from the Early Learning Partnership Multi-Donor Trust Fund (ELP MDTF).

The loan carries an interest rate of 1.5 percent, a commitment fee of up to 0.50 percent on the undisbursed balance, and a maturity period of 25 years, including a 5-year grace period.

The World Bank is the largest multilateral development partner of Bangladesh. This financing reflects the deep cooperation between Bangladesh and the World Bank. Currently, the World Bank financing is covering a wide range of sectors, including economic and social development, institutional reforms, infrastructure development, and energy sector advancement.

Bangladesh’s capital market saw a major boost on Monday as the turnover at the Dhaka Stock Exchange (DSE) crossed Tk 7.0 billion for the first time this year, alongside a broad-based rally in share prices.

The total turnover on the DSE stood at Tk 7.46 billion worth of shares and units during the session. The previous highest turnover in 2026 was Tk 6.93 billion, recorded on January 27.

Before that, the turnover last crossed the Tk 7.0 billion mark on October 7, 2025, when transactions amounted to Tk 7.87 billion, making Monday’s performance the strongest in nearly four months.

The benchmark DSEX index jumped 54 points during the day. The Shariah-based DSES advanced 12 points, while the blue-chip DS30 gained 20 points. All three indices rose by more than 1 per cent in a single session.

Most stocks ended higher, with prices rising for 215 companies against declines for 107, while 68 issues remained unchanged.

In the block market, shares of 23 companies worth Tk 130 million were traded, with Fine Foods Limited topping the list at Tk 60 million.

Islami Bank Bangladesh PLC emerged as the top gainer on the DSE, surging nearly 10 per cent, while Meghna PET Industries Limited was the worst performer, shedding around 8 per cent.

The rally also extended to the Chittagong Stock Exchange (CSE), where the benchmark CASPI index rose by 111 points.

On the CSE, prices increased for 98 companies, declined for 60, and remained unchanged for 25 issues.

The turnover improved to Tk 80 million, up from Tk 60 million in the previous session.

People’s Leasing and Financial Services Limited topped the CSE gainers’ chart with a 10 per cent rise, while FAS Finance and Investment Limited ended at the bottom, losing 10 per cent.

Sediment containing rare earth was retrieved from ocean depths of 6,000 metres (20,000 feet) on a Japanese test mission, the government said Monday, as it seeks to curb dependence on China for the valuable minerals.

Japan says the mission was the world's first bid to tap deep sea rare earths at such a depth.

"Details will be analysed, including exactly how much rare earth is contained" in the sample, government spokesman Kei Sato said, calling it "a meaningful achievement both in terms of economic security and comprehensive maritime development".

The sample was collected by a deep-sea scientific drilling boat called the Chikyu that set sail last month for the remote island of Minami Torishima in the Pacific, where surrounding waters are believed to contain a rich trove of valuable minerals.

It comes as China -- by far the world's biggest supplier of rare earths -- ramps up pressure on its neighbour after Prime Minister Sanae Takaichi suggested in November that Tokyo may react militarily to an attack on Taiwan, which Beijing has vowed to seize control of by force if necessary.

Beijing has blocked exports to Japan of "dual-use" items with potential military uses, fuelling worries in Japan that Beijing could choke supplies of rare earths, some of which are included in China's list of dual-use goods.

Rare earths -- 17 metals difficult to extract from the Earth's crust -- are used in everything from electric vehicles to hard drives, wind turbines and missiles.

The area around Minami Torishima, which is in Japan's economic waters, is estimated to contain more than 16 million tons of rare earths, which the Nikkei business daily says is the third-largest reserve globally.

These rich deposits contain an estimated 730 years' worth of dysprosium, used in high-strength magnets in phones and electric cars, and 780 years' worth of yttrium, used in lasers, the Nikkei said.

"If Japan could successfully extract rare earths around Minami Torishima constantly, it will secure domestic supply chain for key industries," Takahiro Kamisuna, research associate at The International Institute for Strategic Studies (IISS), told AFP.

"Likewise, it will be a key strategic asset for Takaichi's government to significantly reduce the supply chain dependence on China."

Beijing has long used its dominance in rare earths for geopolitical leverage, including in its trade war with US President Donald Trump's administration.

China accounts for almost two-thirds of rare earth mining production and 92 percent of global refined output, according to the International Energy Agency.

Despite a slowdown in the broader economy, value-added tax collection from large companies, particularly in tobacco and beverages, recorded strong growth in the first half of the 2025-26 fiscal year.

By contrast, VAT from sectors such as banking, mobile phone operators, certain construction materials and consumer goods remained modest, while revenue from the cement sector fell by nearly 20%.

VAT growth is measured between corresponding periods of two fiscal years. In FY25, collections were subdued amid mass uprisings and political instability, creating a low base for comparison.

Experts said higher tax rates, particularly on tobacco and beverages, combined with the low base, largely explain the strong growth. They added that the low base should have produced broader-based gains. The fact that this has not happened across most sectors suggests the economic slowdown has not yet eased.

Business leaders echoed that view, saying investment and consumption remain cautious as they wait for an elected government and greater political stability to restore confidence.

26% VAT growth from 109 LTUs

According to the Large Taxpayers Unit–VAT (LTU-VAT) under the National Board of Revenue (NBR), VAT collection from 109 LTU-listed companies rose by around 26% year-on-year during July-December. During the period, total VAT collection stood at Tk59,000 crore, of which just over Tk40,000 crore came from these 109 companies.

This means more than two-thirds of total revenue came from LTUs, with over half generated by three tobacco firms, almost entirely from two British American Tobacco Bangladesh entities.

LTU data show that VAT collected from three cigarette companies stood at Tk21,231 crore between July and December, up Tk6,783 crore, or 47%, from the same period a year earlier.

A senior NBR VAT official, speaking on condition of anonymity, told The Business Standard that the cigarette sector was a key driver of revenue growth, aided by increased monitoring by the LTU-VAT office.

The official said the rise was driven by increases in tobacco prices and supplementary duty, along with policy changes. The same factors applied to the beverage sector, he added.

However, the official said this pace of growth is unlikely to continue in the coming months.

British American Tobacco Bangladesh did not respond to requests for comment. However, its latest financial statements show cigarette stick sales fell by about 28% year-on-year between July and September, even as VAT payments increased.

Pharma 23%, beverage 34% growth

According to LTU-VAT data, the top VAT-paying sectors after tobacco include four mobile phone operators, five gas distributors, 18 pharmaceutical firms, 17 banks, electricity distributors, and companies in soap, water supply, print and varnish, and nine cement firms.

VAT collection from four beverage companies rose by 34% in the first half of the fiscal year, while the pharmaceutical sector recorded growth of about 23%.

Md Zakir Hossain, secretary general of the Bangladesh Association of Pharmaceutical Industries, said July to December is typically a strong growth period for pharmaceutical companies, describing the rise as normal, but added that the rate would not be sustained in the coming months.

Cement VAT drops 20%

Sectors with weaker growth blamed the continued economic slowdown. VAT collection from the cement sector has been declining for the past 18 months and fell by 20% year-on-year in the first half.

Md Shahidullah, former vice-president of the Bangladesh Cement Manufacturers Association, said falling demand was the main reason, citing a sharp slowdown in infrastructure development that also reduced demand for steel.

He said momentum could return after elections and the formation of a new government, but meaningful recovery is unlikely within the next six months and may only materialise in the next fiscal year.

3.46% VAT rise from banks

VAT collection from the banking sector rose by just 3.46% during the period.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said the low growth reflected service disruptions at several banks and declining deposits.

"While a few banks are doing well, most are not," he said, adding that economic recovery would depend on a credible election and a smooth political transition.

"Once momentum returns to the economy, revenue collection will also rise," he said.

Snehasish Barua, a chartered accountant and director of SMAC Advisory Limited, told TBS that because last year's VAT collection was weak, stronger growth should have been recorded under normal conditions.

"The absence of that growth in several sectors shows the economy has not regained the expected momentum, while growth in some sectors is largely driven by higher taxes," he said.

Saudi Arabia has taken regulatory steps affecting religious tourism and wildlife management in early February 2026, alongside a range of regional and international developments.

The Saudi Ministry of Hajj and Umrah has suspended contracts with around 1,800 foreign Umrah travel agencies, nearly one-third of the approximately 5,800 agencies operating in the sector. The move followed a performance review that found shortcomings in service quality and non-compliance with approved standards, says Arab News.

The affected agencies have been given a 10-day grace period to rectify their status and meet classification requirements in order to have their contracts reinstated. The suspension applies only to the issuance of new visas, while pilgrims who already hold valid visas or confirmed reservations will continue to receive services as planned. The ministry said the measure is intended to protect the rights of Umrah performers and ensure reliable and continuous services.

Separately, Saudi Arabia's National Center for Wildlife announced the conclusion of the 2025–2026 hunting season on 31 January. The season, which began in September 2025, was regulated under updated mechanisms based on research and international best practices. Authorities said the framework was designed to support the sustainable use of natural resources and maintain ecological balance in line with the Kingdom's Environmental Law.

In sports developments, Spain's Carlos Alcaraz defeated Serbia's Novak Djokovic to win his first Australian Open title. Riyadh also hosted a WWE Royal Rumble event, with Roman Reigns and Liv Morgan emerging as winners.

In religious services, the Grand Mosque introduced a dedicated Ramadan plan for women, while Indonesia announced it would deploy a record number of women officers to assist Hajj pilgrims.

On the international front, Pakistan condemned what it described as Israel's latest ceasefire violations and called for advance food imports ahead of Ramadan to reduce pressure on its ports.

In the economic sector, Saudi Arabia's Housing Ministry said it offered more than 21,000 investment opportunities in 2025, with contract values exceeding $3.35 billion.

US President Donald Trump on Saturday said India will buy Venezuelan oil, helping to replace some of the Russian oil that the world’s third-biggest oil importer buys.

“We’ve already made that deal, the concept of the deal,” Trump told reporters aboard Air Force One as he traveled to his vacation home in Florida from Washington.

Reuters reported on Friday that the United States has told Delhi it could soon resume purchases of Venezuelan oil to help replace imports of Russian oil, citing three people familiar with the matter. India stopped buying oil from Caracas last year after Trump in March imposed a 25 percent tariff on countries buying Venezuelan oil.

In his comments on Saturday, Trump said India would buy Venezuelan oil instead of Iranian crude. However, New Delhi stopped loading oil from Iran in 2019 due to US sanctions over Tehran’s nuclear programme.

Indian refiners turned to US oil to make up for the loss of Iranian supply, then curbed US purchases and became the top buyer of Russian seaborne oil sold at a discount after Western nations imposed sanctions on Moscow for its invasion of Ukraine in 2022.

Trump in August doubled duties on imports from India to 50 percent to pressure New Delhi to stop buying Russian oil, and earlier this month said the rate could rise again if it did not curb its purchases.

However, Treasury Secretary Scott Bessent signaled in January that the additional 25 percent tariff on Indian goods could be removed, given what he called a sharp reduction in Indian imports of Russian oil.

The US government this week lifted some sanctions on Venezuela’s oil industry to make it easier for US companies to sell its crude oil.

Trump’s comments on Saturday appeared to reflect continued improvement in US-India relations, which have been tense throughout the past year.

Trump also said China could make a deal with the US to buy Venezuelan oil.

“China is welcome to come in and would make a great deal on oil,” Trump said, without providing any details.