India has set up a committee to examine supply issues after a sudden shortage of commercial LPG cylinders, caused by the West Asia war, alarmed the hospitality sector.

Restaurant associations have warned that many eateries could be forced to shut down within days if supply chains are not immediately restored.

In response to the situation, India's Oil Ministry yesterday (8 March) announced the formation of a committee to examine supply issues affecting non-domestic LPG users.

"In light of current geopolitical disruptions to fuel supply and constraints on LPG availability, the ministry has directed oil refineries to increase LPG production and prioritise domestic consumption," the ministry said in a post on X.

Authorities have prioritised LPG supply for households and introduced a 25-day inter-booking period for domestic cylinders to curb hoarding and prevent black marketing.

However, the move has further tightened supply for commercial users such as restaurants and hotels.

Industry sources said the disruption has already begun affecting operations in major cities including Mumbai and Bengaluru.

Vijay Shetty, President of the India Hotels and Restaurant Association, said the shortage is spreading rapidly and could soon paralyse the sector.

"For LPG supply to non-domestic sectors, a committee of three Executive Directors (EDs) of Oil Marketing Companies (OMCs) have been constituted to review the representations for LPG supply to restaurants/hotels/other industries," the ministry said.

India consumes about 31.3 million tonnes of LPG annually. As much as 87 per cent of this is in the domestic sector that is household kitchens, and the rest in commercial establishments such as hotels and restaurants.

Of this total requirement, as much as 62 per cent is met through imports. The US and Israel attacks on Iran and Tehran's retaliation has shut the Strait of Hormuz, through which India got 85-90 per cent of its LPG imports from countries like Saudi Arabia.

The country’s heavy reliance on imported energy from the Middle East, especially liquefied natural gas (LNG) and crude oil, has left the economy exposed to global price shocks and supply disruptions as the US-Israel’s war on Iran intensifies, according to the Centre for Policy Dialogue (CPD).

The think tank said the next national budget by the new government is being developed under these economic challenges. It urged the government to prioritise energy security in the new budget and gradually move towards greater domestic self-sufficiency.

Speaking at a media briefing at its Dhaka office on recommendations for the national budget for fiscal year 2026-2027, CPD urged policymakers to focus on restoring macroeconomic stability, stimulating investment and strengthening revenue mobilisation.

“The economy faces multiple pressures, including high inflation, low revenue collection, slow budget execution, a heavy debt burden, low investment, declining employment, a weak financial sector and declining export growth,” said Fahmida Khatun, executive director of CPD.

While presenting the paper, she said that rising global energy prices driven by instability in the Middle East are clouding Bangladesh’s inflation outlook further. Higher fuel costs are also pushing up prices of essential commodities such as edible oil, wheat and sugar.

Prof Mustafizur Rahman, a distinguished fellow of CPD, pointed to another vulnerability. He said Bangladesh does not have permanent strategic reserves of fuel oil, unlike several neighbouring countries.

Rahman urged the government to develop such reserves under a medium-term plan to reassure markets and prevent panic buying during periods of global volatility.

At the programme, CPD also highlighted deep financial strain in the energy sector, where mounting losses and heavy dependence on imported LNG are weakening fiscal stability.

Fahmida said the FY27 budget must combine targeted short-term measures while also laying the foundation for medium-term reforms to stabilise the economy.

REVENUE MOBILISATION REMAINS WEAK

CPD identified major shortcomings in revenue collection and said that the government is unlikely to meet its targets for the current fiscal year.

“In the case of tax collected by NBR [National Board of Revenue], revenue mobilisation growth remained at only 12.9 percent during July-January of FY26,” said Fahmida.

The annual growth target for FY26 was set at 34.5 percent. To reach that goal, tax collection would need to rise by 59.4 percent during the February-June period, a pace that appears highly unlikely given the current trend.

Professor Rahman said the government should focus on reducing revenue leakage. He called for greater digitalisation of tax administration and a strict stance against tax evasion.

To strengthen fiscal capacity, CPD proposed a series of reforms to increase domestic resource mobilisation.

The CPD paper said Bangladesh’s tax-to-GDP ratio remains among the lowest in comparable economies.

The Bangladesh Nationalist Party (BNP) has set a target of raising the ratio to 15 percent by 2035 from 6.8 percent in FY25. To achieve that target, the think tank suggested exploring new tax bases.

“Meaningful taxation of wealth and property and taxes on the expanding digital economy should be considered,” suggested Fahmida.

The think tank also advised the government to phase out ad-hoc tax incentives and improve mechanisms for resolving tax disputes.

BUDGET EXECUTION SLOWS SHARPLY

CPD also pointed to weaknesses in public spending, especially in the implementation of the annual development programme (ADP).

During the July-January period of FY26, the ADP implementation rate reached only 20.3 percent, the lowest level in fifteen years, it said.

CPD added the slowdown may reflect “poor project management, institutional inefficiency and the government’s deliberate attempt to curtail overcapitalised development projects.”

At the same time, the government has relied increasingly on bank borrowing to finance the fiscal deficit, a trend that could crowd out private sector credit.

CPD expressed concern about falling investment, saying that the trend threatens job creation and long-term economic growth.

Private investment dropped to 22.03 percent of GDP in the last fiscal year, the lowest level in a decade. Foreign direct investment has also remained very low.

The decline suggests that the economy is not creating enough jobs at a time when large numbers of young people enter the labour market each year.

INFLATION CONTINUES TO STRAIN HOUSEHOLDS

Inflation remains another pressing challenge for policymakers. During the first eight months of FY26, general inflation largely stayed between 8 percent and 9 percent across national, rural and urban levels.

Stubbornly high prices are placing additional pressure on middle-income households.

CPD said the upcoming budget will require more realistic fiscal targets. “The targets set for the macroeconomic framework in recent budgets appeared to be overly optimistic,” said Fahmida.

The think tank said the experience of the current fiscal year highlights the need for more credible projections and better alignment between targets and implementation capacity.

RETHINKING SPENDING PRIORITIES

CPD also urged the government to reassess spending priorities.

It recommended allocating greater resources to sectors that directly support vulnerable groups, including food production, social protection, agriculture subsidies, health and education.

At the same time, unproductive projects should continue to be removed from the development budget, it said.

The think tank called for reforms to improve the business climate and support employment. It also recommended building a digital platform that simplifies procedures for businesses.

“The government should establish an integrated digital one-stop service platform for business registration, licensing, taxation and regulatory compliance,” CPD said.

CPD also proposed tax relief for small and medium enterprises. It suggested abolishing Advance Income Tax and Advance VAT on imports of capital machinery and raw materials used by SMEs.

According to CPD, the FY27 budget offers the new government an opportunity to demonstrate leadership in fiscal management.

Restoring macroeconomic stability must remain the central objective, it added.

Khondaker Golam Moazzem, research director of CPD, was also present at the briefing.

Bangladeshi companies are increasingly investing abroad, with net foreign direct investment (FDI) outflows soaring more than ninefold in the July-September quarter of 2025 compared with the same period the year before.

According to Bangladesh Bank data, net outflows reached $15.80 million during the quarter, up from $1.70 million a year earlier, reflecting a growing outward-looking investment trend.

Total outward flows (or gross outward flows) rose to $31.99 million in the quarter, compared with $17.11 million a year earlier.

Meanwhile, inflows increased slightly to $16.20 million from $15.41 million, widening the overall net outflow.

Between July and September 2025, Bangladeshi companies sent more money abroad than they received. Equity capital -- ownership stakes in foreign companies -- saw a net outflow of $2.23 million.

Reinvested profits also posted a net outflow of $4.12 million, while intra-company loans -- funds moved between parent firms and subsidiaries -- accounted for a net outflow of $9.45 million.

By contrast, the same period in 2024 saw only $1.19 million leave as equity, while $9.23 million in reinvested profits and $8.72 million in intra-company loans came into the country.

Country-wise, Hong Kong SAR of China received the largest share of net outflows at $10.63 million. India followed with $4.62 million, and the United Arab Emirates received $2.62 million.

Smaller amounts went to Singapore, Kenya, South Africa, Ireland, Italy, and the Maldives, while other countries recorded a net outflow of $3.68 million.

By sector, financial intermediaries sent the most money abroad with $12.47 million in net outflows, followed by trading ($3.53 million) and metal and machinery products ($0.21 million).

Mining and quarrying, and chemicals and pharmaceuticals each had tiny outflows of $0.01 million, textiles and clothing $0.11 million, and other manufacturing $0.27 million.

FIRMS SEEK OPPORTUNITIES ABROAD

The trend reflects companies’ growing interest in overseas markets through equity stakes and intra-company lending. The push began after 2015, when the government revised the Foreign Exchange Regulation Act, allowing firms to invest abroad under certain conditions, especially to promote exports. Since then, Bangladeshi companies have expanded into over 18 countries across Asia, Africa, and Europe.

Muhammad Zahangir Alam, chief financial officer of Square Pharmaceuticals Ltd, said the company invested $75 million in 2022 to build a manufacturing plant in Kenya.

The plant supplies medicines across East Africa, including Kenya, Tanzania, Rwanda, Burundi, Uganda, and South Sudan, where most medicines are still imported.

Currently, Square sells about $8 million worth of medicines each year from its Kenya plant, and it is expected to rise to $10 million soon, Alam said.

He added that investing abroad helps the company earn profits without relying solely on exports from Bangladesh.

Square Pharmaceuticals has also been approved by the US Food and Drug Administration, opening the door for further global investments.

“We are also aiming at the ASEAN market, where about 70 percent of medicines are imported,” Alam said, adding the company is considering investments in Malaysia and the Philippines.

Bangladesh Steel Re-Rolling Mills Ltd (BSRM) has also expanded abroad. The company got approval from the Bangladesh Bank to invest $500,000 to increase the capital of its existing subsidiary in Hong Kong.

Shekhar Ranjan Kar, company secretary of BSRM Steels Ltd, said the subsidiary mainly helps with sourcing raw materials, not manufacturing.

Set up two to three years ago, the trading office finds and buys quality scrap from countries like China and Hong Kong and supplies it to Bangladesh. The office runs with a small team of three to four staff members, he added.

Selim Raihan, executive director of the South Asian Network on Economic Modelling, said the rise in outward investment may partly be due to a weak domestic investment environment. Indicators like private sector credit growth show that local investment is still low.

He added that the total amount of outward FDI is still small and unlikely to affect the overall economy. Many investments are approved individually and are often driven by specific opportunities abroad.

Raihan said instead of worrying about money leaving the country, policymakers should focus on improving the local investment climate.

Boosting investor confidence, strengthening law and order, reducing business costs, and managing global uncertainties -- such as tensions in the Middle East and fluctuating oil prices -- will be key to encouraging investment in Bangladesh, he added.

India today came out with a fresh set of guidelines easing norms for foreign direct investment (FDI) coming from countries sharing land border with it, providing for a 60-day timeline for approval to investments in critical sectors, including electronic capital goods and electronic components.

A meeting of the Indian cabinet presided by Prime Minister Narendra Modi approved the changes in FDI policy for investments from Land Bordering Countries (LBCs), which will help manufacturing in electronic components, capital goods and solar cells, an official statement said this evening (10 March).

Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Afghanistan and Myanmar.

The amendments in the FDI policy aim to unlock greater FDI inflows from global funds for startups and deep techs, take forward the agenda of ease of doing business, it said.

The changes in the policy envisage "expeditious approval in 60 days to help companies enter into collaborations to expand manufacturing in India" with access to technology and integration with global supply chains.

In 2020, India had clamped restrictions on foreign companies having shareholders from the LBCs, which required mandatory government approval for investments in India in any sector, in a bid to curb opportunistic takeovers or acquisitions of Indian companies due to the Covid-19 pandemic.

At that time, the Indian government clearance was mandatory for an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country. Additionally, any transfer of ownership of any existing or future FDI in an entity in India resulting in the beneficial ownership falling within the aforesaid jurisdiction(s) also requires government approval.

The statement noted that the restrictions on cases where LBC investors may have only non-strategic, non-controlling interests were seen as adversely affecting investment flows from investors, including global funds such as PE/VC funds.

It said, "The new guidelines will provide clarity and ease of doing business in India, and facilitate investments which can contribute towards greater FDI inflows, access to new technologies, domestic value addition, expansion of domestic firms and integration with global supply chain."

"This would help in leveraging and enhancing India's competitiveness as a preferred investment and manufacturing destination," according to the statement.

The statement said the existing policy has been reviewed and amended to provide for a definition and criteria for the determination of beneficial ownership (BO) that is widely used by the investing community under the Prevention of Money Laundering Rules, 2005.

The beneficial ownership test will be applied at the level of the investor entity. Investors with non-controlling LBC beneficial ownership of up to 10% would be permitted under the automatic route, subject to applicable sectoral caps, entry routes and attendant conditions.

Under the amended FDI rules, such investments would be subject to the reporting of relevant information/details by the investee entity to the Commerce Ministry. Expedited clearance of investments in specific sectors –

Proposals for LBC investments in specified sectors of manufacturing in capital goods, electronic capital goods, electronic components, polysilicon and ingot-wafer would be processed and decided within 60 days.

The Companies under the Cabinet Secretary may also revise the list of specified sectors.

In these cases, the majority shareholding and control of the Investee entity will have to be with resident Indian citizens and/or resident Indian entities owned and controlled by resident Indian citizens at all times.

China stands at the 23rd position with only a 0.32% share ($2.51 billion) in the total FDI equity inflow reported in India from April 2000 to December 2025.

Relations between New Delhi and Beijing nosedived following the fierce clash between their armies in Galwan Valley across the unresolved Himalayan borders in eastern Ladakh in June 2020 that marked the most serious military conflict between the two sides in decades.

Following the military faceoff, India banned over 200 Chinese mobile apps like TikTok, WeChat, and Alibaba's UC browser.

Bilateral trade between India and China has grown multi-fold with the balance trade heavily tilted in favour of China. In fact, China has emerged the second-largest trading partner of India.

In 2024-25, India's exports to China shrunk 14.5% to $14.25 billion as against $16.66 billion in 2023-24. Imports, however, rose 11.52 per cent in 2024-25 to $113.45 billion against $101.73 billion in 2023-24. The trade deficit was widened to $99.2 billion in 2024-25 from $85 billion in 2023-24.

During April-January 2025-26, India's exports to China rose 38.37% to $15.88 billion, while imports rose 13.82% to $108.18 billion. Trade deficit stood at $02.3 billion.

According to Exim Bank of India data, cumulative inflows of FDI into India from Bangladesh during April 2000- March 2020 amounted to $0.1 million.

Cumulative Foreign Direct Investment from India to Bangladesh has more than doubled from $243.91 million in 2014 to $570.11 million in December 2018. Indian companies have invested in various sectors, including telecommunications, pharmaceuticals, FMCG and automobile sectors in Bangladesh.

During Bangladesh Prime Minister Sheikh Hasina's visit in April 2017, 13 agreements worth around $10 billion of Indian investment mainly in power and energy sectors in Bangladesh, were signed.

Billions of dollars have already been spent by the United States on weapons in the war with Iran, making war a highly profitable business for defence contractors.

Last week, stock prices for major US arms-producing companies rose, including Northrop Grumman (up 5%), RTX (up 4.5%) and Lockheed Martin (up 3%).

In 2024, the top 100 defence companies in the world generated more than $679b in revenue, according to the Stockholm International Peace Research Institute (SIPRI).

European heavyweights such as the UK's BAE Systems, Italy's Leonardo, the trans-European Airbus, France's Thales and Germany's Rheinmetall are among the top 20 companies, with many expanding amid the Russia-Ukraine conflict.

Largest US defence contractors

According to SIPRI's report, 39 US contractors appear on its list of the top 100 defence companies, far exceeding China's eight groups.

The five largest US defence companies are Lockheed Martin, RTX, Northrop Grumman, General Dynamics and Boeing.

Lockheed Martin, the world's largest defence contractor formed in 1995 through the merger of Lockheed and Martin Marietta, generated $68.4b in revenue in 2024 and manufactures aircraft such as the F-35 as well as missile and space systems.

RTX, created in 2020 after the merger of Raytheon and United Technologies, focuses on missile systems, jet engines and avionics, with $43.6b of its 2024 revenue coming from defence.

Northrop Grumman, formed in 1994 after Northrop acquired Grumman, produces stealth aircraft such as the B-21 Raider and develops space and nuclear modernisation systems, earning $37.9b from defence in 2024.

General Dynamics develops nuclear submarines, battle tanks and armoured vehicles and recorded $33.6b in defence revenue in 2024.

Boeing, founded in 1916, generates revenue from commercial aircraft production as well as defence and space programmes including the F/A-18E/F Super Hornet, AH-64 Apache and P-8 Poseidon, with $30.6b coming from defence in 2024.

Israel's major defence firms

According to SIPRI, three Israeli companies appear on the list of the world's top 100 defence companies.

Elbit Systems, Israel's largest defence company, specialises in drones, surveillance systems and battlefield electronics, generating $6.3b from defence in 2024.

Israel Aerospace Industries focuses on missile defence systems, satellites, combat drones and radar technology and earned $5.2b from defence.

Rafael, the developer of Israel's Iron Dome missile defence system, generated $4.7b from defence in 2024.

Defence spending and stock growth

According to SIPRI, global defence spending rose 9.4% in 2024 to reach $2.7 trillion.

NATO members have also pledged to increase their defence budgets from 2% to 5% of GDP by 2035, adding hundreds of billions of dollars in annual spending.

To replenish rapidly depleting munitions used in the wars in Ukraine and the Middle East, major weapons contractors are investing billions in new orders, responding to rising demand and driving up their stock prices.

From March 2023 to March 2026, RTX recorded the largest stock increase among major US contractors at 110%, followed by Northrop Grumman at 60%, General Dynamics at 57%, Lockheed Martin at 37% and Boeing at 5%.

Oil prices plummeted 7 percent on Tuesday after soaring to a more than three-year high in ​the previous session as US President Donald Trump predicted the war in the Middle East could end soon, easing concerns about prolonged disruptions to oil ‌supplies.

Brent futures were down $7.15, or 7.2 percent, at $91.81 a barrel by 1307 GMT, while US West Texas Intermediate (WTI) crude was down $6.26, or 6.6 percent, at $88.51 a barrel. Both contracts fell as much as 11 percent earlier in the day.

Trading volumes in Brent dropped to about 328,000 contracts, the lowest amount since February 27, just before the start of the US-Israeli war on Iran. Volumes in WTI ​fell to 296,000 contracts, the lowest since February 23.

Oil surged to more than $119 a barrel on Monday to its highest since mid-2022 as supply cuts by Saudi ​Arabia and other producers stoked fears of major disruptions to global supplies.

Prices later retreated after Russian President Vladimir Putin had a ⁠call with Trump and shared proposals aimed at a quick settlement to the war, according to a Kremlin aide, easing concerns about oil supply.

Trump said on Monday in a ​CBS News interview that he thought the war against Iran was "very complete" and Washington was "very far ahead" of his initial four- to five-week estimated time frame.

“Clearly Trump's comments ​about a short-lived war have calmed markets. While there was an overreaction to the upside yesterday, we think there is an overreaction to the downside today," said Suvro Sarkar, energy sector team lead at DBS Bank, adding that the market was under-appreciating risks at these levels for Brent.

“Murban and Dubai grades are still well above $100 per barrel, so practically nothing much has changed ​in terms of ground realities," he added, referring to benchmark Middle Eastern oil grades.

In response to Trump, Iran's Islamic Revolutionary Guards Corps said they would “determine the end ​of the war” and Tehran would not allow “one litre of oil” to be exported from the region if US and Israeli attacks continued, state media reported on Tuesday.

They're too expensive.

Meanwhile, Trump is considering easing ‌oil sanctions ⁠on Russia and releasing emergency crude stockpiles as part of a package of options aimed at curbing spiking prices, according to multiple sources.

“Discussions around easing sanctions on Russian oil, comments from Donald Trump hinting that the conflict could eventually de-escalate, and the possibility of G7 countries tapping strategic oil reserves all pointed to the same message - that oil barrels will somehow continue to reach the market," Priyanka Sachdeva, a Phillip Nova analyst, said in a note.

“Once traders sensed that supply routes could ​still be maintained, the initial 'panic premium' that ​had pushed prices above the $100 mark ⁠yesterday started to fade, and oil prices quickly pulled back."

Saudi Arabia's Aramco, the world's top oil exporter, said on Tuesday there would be "catastrophic consequences" for the world's oil markets if the Iran war continues to disrupt shipping in the Strait of Hormuz.

“Policy measures ​may have limited impact on oil prices unless safe passage through the Strait of Hormuz is assured, given the potential ​losses of up ⁠to 12 million bpd over the next two weeks," JPMorgan said in a note.

In the latest disruption to global supplies, Abu Dhabi state oil giant ADNOC has shut its Ruwais refinery, a source said on Tuesday, after a fire broke out at a facility within the complex following a drone strike.

Goldman Sachs said because the situation remains fluid, it ⁠was not ​changing its oil price forecast for Brent at $66 per barrel in the fourth quarter and WTI at $62 ​per barrel.

G7 energy ministers will discuss how to tackle soaring energy prices due to the war in Iran on a call on Tuesday while a group of European Union leaders will do so later ​in the day, officials said.

Bangladesh has sought assistance from China to ensure a seamless fuel supply from Chinese suppliers under a settled long-term agreement following reports of restrictions on fuel exports from Chinese refineries.

The request was made during a meeting held at the power, energy and mineral resources ministry yesterday (10 March), attended by the minister, state minister, two secretaries, and Chinese Ambassador Yao Wen.

Chinese state-owned company Unipec exports a substantial amount of diesel to Bangladesh. The Bangladesh Petroleum Corporation (BPC) is supposed to receive at least three diesel cargoes with 30,000 tonnes each between 13 and 29 March.

Following the restrictions, BPC said there is uncertainty about those cargoes, as well as concerns raised by other suppliers about the smooth supply of fuel, citing the Middle East war.

Energy ministry officials said after Bangladesh requested an uninterrupted supply, the ambassador advised the minister to share the fuel import plan earlier determined between the BPC and Chinese suppliers.

When asked about the meeting with the Chinese envoy, ministry officials declined to comment on record.

Energy Division sources said the ambassador assured that the fuel supply issue would be discussed with the Chinese government once Bangladesh submits details on the fuel supply window and quantity expected from Chinese suppliers.

Speaking to journalists at the ministry later, the Chinese ambassador said there are proposals from both sides to expand energy cooperation.

"We discussed better ways forward and modalities on how to expand cooperation in the power and energy sector," he said.

Wen added that China had raised the issue of expanding investment in Bangladesh's power and energy sector, particularly in solar energy cooperation.

When asked whether Bangladesh raised the issue of the ongoing energy crisis, the ambassador replied, "Yes. We discussed this issue, but I am not in a position to comment on it now."

Energy Division sources told TBS that Minister Iqbal Hasan Mahmud Tuku raised the issue of supply uncertainty from Chinese companies.

5,000 tonnes of diesel imported from India

Meanwhile, amid panic buying and growing concern in the fuel market, Bangladesh imported 5,000 tonnes of diesel from India yesterday, just a day after BPC imported more than 27,000 tonnes of diesel.

BPC Chairman Muhammad Rezanur Rahman confirmed the import of diesel from India.

Energy Division officials said BPC will receive another 5,000 tonnes of diesel from India today through the 131-kilometre India-Bangladesh Friendship Pipeline, which runs from the Siliguri Marketing Terminal in India to the Parbatipur depot in Dinajpur, enabling direct diesel transportation between the two countries.

The diesel import is taking place under an earlier agreement between BPC and Numaligarh Refinery Limited, an Indian state-owned refinery, for the January–June supply window this year.

Earlier, Bangladesh requested India to ramp up diesel exports under the existing agreement.

Under the deal between BPC and Numaligarh Refinery Limited, the refinery is scheduled to supply 1.8 lakh tonnes of diesel annually through the cross-border pipeline.

Of this volume, around 1.2 lakh tonnes have already been confirmed, while Bangladesh retains the option to import an additional 60,000 tonnes depending on demand.

The pipeline was inaugurated in March 2023 during the tenure of the Sheikh Hasina-led government and has the capacity to transport around 2 lakh tonnes of diesel annually.

"According to the agreement, at least 90,000 tonnes of diesel should be imported to Bangladesh from India within six months.

"The consignment arriving today (Tuesday) is 5,000 tonnes, and we hope that within the next two months we will bring in the total diesel amount for the entire six months," the BPC chairman said.

Outstanding power bills

Meanwhile, leaders of the Bangladesh Independent Power Producers' Association (BIPPA) met State Minister for Power and Energy Aninda Islam Amit, raising the issue of outstanding power bills amounting to Tk14,000 crore as well as liquidated damages (LD) imposed by BPDB for failing to provide electricity as demanded.

During the meeting, a six-member BIPPA delegation, led by its President David Hasanat, urged the government to release funds to clear the outstanding power bills so that Letters of Credit (LCs) can be opened to import fuel and keep HFO-based power plants running during the upcoming summer.

Power Division sources said the state minister acknowledged the seriousness of clearing the bills and assured that the matter would be settled soon.

No plan to hike fuel prices

The state minister also reiterated the government's position on a possible fuel price hike amid rising global prices and panic buying.

"There is no reason to increase the prices of fuel or electricity," he said.

Earlier, on 5 March, all state-owned oil marketing companies proposed raising fuel prices to discourage panic buying as Bangladesh faces growing uncertainty over energy supplies amid escalating tensions in the Middle East.

Managing directors of Padma Oil Company Limited, Jamuna Oil Company Limited, and Meghna Petroleum Limited jointly recommended a price hike, arguing that higher prices could discourage consumers and businesses from stockpiling fuel.

The state minister also said Bangladesh has the capacity to maintain normal energy and power supply until May.

"The concerns and anxiety people are feeling over fuel and electricity will fade soon. At present, there is no shortage in the country," the state minister said.

Intense monitoring over the years resulted in steady progress in project implementation and portfolio management, leading to a gradual decline in cancellation and repurposing of Asian Development Bank (ADB)'s loans in Bangladesh – from $1 billion in 2024 to $450 million last year.

In 2026, an additional $245.6 million is projected for adjustment through cancellations and repurposing, according to a report presented at the Tripartite Portfolio Review Meeting on Asian Development Bank-funded projects that began yesterday (10 March) in Dhaka.

The report says in 2025, Bangladesh's portfolio of ADB projects saw improvements in both contract awards and disbursements compared to the previous year.

Contract awards reached $581.2 million, achieving 95.8% of the annual target of $611.3 million, while disbursements totalled $1.118 billion, or 82.5% of the target of $1.351 billion. The figures represent an overall increase in performance compared with 2024, reflecting progress in project implementation and portfolio management, it says.

The lender identifies those projects for cancellation or repurposing which show limited progress despite concerted efforts for improvement.

The ongoing portfolio of the ADB in Bangladesh stood at $10.21 billion covering 48 projects across six sectors as of 15 February 2026, according to the latest portfolio review report.

About 71% of the total portfolio is concentrated in the transport, energy, and water and urban development sectors, which remain the main focus of ADB-supported investments in the country.

The report said Bangladesh's ADB portfolio had steadily expanded from $6.5 billion in 2015 to $13.8 billion in 2023, reflecting strong growth in development financing. However, the pace of expansion slowed after the political unrest in 2024, leading to a gradual decline in the active portfolio through 2025.

In 2025, ADB approved eight new projects worth about $1.67 billion in Bangladesh. Of these approved projects, two have already achieved contract awards covering at least 30% of their loan amounts, indicating early progress in project implementation.

The two-day review meeting is co-chaired by Md Shahriar Kader Siddiky, secretary of Economic Relations Division, Hoe Yun Jeong, country director of ADB's Bangladesh Resident Mission, and the regional head for operations coordination of ADB's South Asia Department. Officials from relevant line ministries as well as executing and implementing agencies are participating in the meeting.

Targets for 2026

The report also outlined several performance targets. The government and ADB aim to achieve 100% of the contract award and disbursement targets in 2026, with $939 million in contract awards and $1.1147 billion in disbursements.

The five-year trend shows that the share of projects facing risks rose to 12% in 2025, the highest level in the past five years. These risks are mainly attributed to weak government coordination, poor project management, and low project readiness. The target for 2026 is to reduce the risk level to 5%.

Procurement performance will also be closely monitored. End-to-end procurement time, a key performance indicator for project implementation, is targeted to be reduced by 10% in 2026 compared to the 2025 level.

The average procurement time for high-value contracts awarded last year was 485 days, highlighting opportunities for efficiency improvements.

Sector-wise data show that the energy and transport sectors recorded the longest procurement times, taking as high as 794 days in some cases.

For low-value contracts, average times gradually declined from 218 days in 2020 to 172 days in 2025, reflecting continued improvement in overall procurement efficiency.

Long procurement timelines in Bangladesh's ADB portfolio are mainly caused by inadequate project preparation, weak project design, poor-quality bid documents, and lengthy government approval processes, the report reveals, suggesting measures such as preparing realistic procurement timelines, engaging experienced consultants, and using advanced procurement.

Sectoral priorities

According to the ADB report, disbursement projections for 2026 indicate that the transport, energy, water, and urban sectors will drive the majority. Together, transport, energy, water, and urban development account for about 71% of the annual disbursement target.

The transport sector projects include the SASEC Dhaka-Northwest Corridor Road Project, the Flood Emergency Project, and the Dhaka-Sylhet Corridor Road Investment Project.

In the energy sector, key projects include the Rupsha 800MW Combined Cycle Power Plant Project, the Bangladesh Power System Enhancement and Efficiency Improvement Project, and the Dhaka Power System Expansion and Strengthening Project, which together account for about 64% of the sector's projected disbursements.

In the water and urban sector, major projects include the Improving Urban Governance and Infrastructure Programme, the Khulna sewerage project, and the Dhaka water supply project.

To optimise its portfolio, ADB's Business Resilience Management (BRM) framework will strengthen monitoring of loans with unutilised funds.

To enhance overall portfolio performance, ADB's local office is undertaking several initiatives, including strengthening portfolio monitoring through regular consultations, supporting capacity development for project implementation, and cleaning up the portfolio through cancellations or the repurposing of unutilised funds.

A growing diesel shortage is threatening the operations of lighterage vessels that transport bulk cargo from ships anchored off Chattogram port to destinations across Bangladesh, raising concerns of disruptions in the country's supply chain.

Industry insiders warn that if the fuel crisis persists, unloading cargo at the port's outer anchorage and transporting goods through inland waterways could be severely affected, potentially triggering shortages in domestic markets ahead of Eid.

A lighterage vessel typically requires between 2,500 and 5,000 litres of diesel per trip, depending on capacity. These vessels usually collect fuel from bunkering tankers, but supplies have become scarce after the government introduced rationing measures amid a broader fuel shortage linked to the ongoing conflict in the Middle East.

Distributors say the volume of diesel they are receiving from state-run fuel marketing companies is now less than half of the actual demand. As a result, many vessels remain unable to depart even after loading cargo.

Key link in supply chain

Bangladesh's inland waterways play a critical role in transporting imported commodities across the country.

Bulk goods arriving at Chattogram port on large mother vessels are unloaded at the outer anchorage and transferred to smaller lighterage vessels, which then carry the cargo to different river ports nationwide. Around 1,500 lighterage vessels are involved in transporting imported goods from the mother vessels at the outer anchorage of Chattogram port.

Any disruption in this system could affect the flow of essential commodities, potentially causing shortages in markets during the upcoming Eid season and pushing up prices.

Vessel operators struggling

Mohammad Jahangir Alam, owner of ANJ Trading, operates a fleet of 60 vessels, including both owned and chartered ships.

If we send a vessel on a long route, it needs around 5,000 litres at once. Unlike road transport, there are no refuelling stations along waterways. That's why we are avoiding long-distance trips. More than half of our vessels are sitting idle.
Mohammad Jahangir Alam, owner, ANJ Trading

His operations require around 2,05,000 litres of diesel each month. Under a distributor licence from Padma Oil Company, he normally lifts about 70,000 litres of diesel weekly to supply his vessels.

However, he said the company has not supplied any diesel since 3 March.

"For the past few days we have been managing local trips by giving only 400 to 500 litres of diesel to each vessel," Jahangir told TBS.

"If we send a vessel on a long route, it needs around 5,000 litres at once. Unlike road transport, there are no refuelling stations along waterways. That's why we are avoiding long-distance trips. More than half of our vessels are sitting idle."

'Supply cut by 25%'

Padma Oil Company Managing Director Mofizur Rahman said distributors are still receiving diesel supplies, though at a reduced level.

"According to government instructions, we are supplying 25% less than usual," he told TBS.

He added that several fuel shipments have recently arrived.

"One vessel arrived yesterday, another today, and another is expected tomorrow. Fuel supply should return to normal within a few days," he said.

Port cargo handling at risk

Parvez Ahmed, convener of the Bangladesh Water Transport Coordination Cell, said around 73 mother vessels carrying various bulk commodities are currently waiting at the outer anchorage of Chattogram port.

The coordination cell allocates about 100 lighterage vessels daily to transport cargo from these ships to destinations across the country.

"These lighterage vessels require around 4,00,000 to 5,00,000 litres of fuel every day for their operations," he said.

Due to the shortage, many vessels loaded with cargo are now floating in the Karnaphuli River, unable to sail without adequate fuel.

"If the vessels cannot depart, cargo cannot be unloaded from the mother vessels. This could disrupt the supply of food and other essential goods and create instability in the market," Parvez said.

He added that the coordination cell has written to the government requesting uninterrupted fuel supply for lighterage vessels in order to maintain commodity prices, protect the reputation of Chattogram port and keep the national economy functioning smoothly.

Call for urgent action

Sarwar Alam Sagar, president of the Bangladesh Ship Handling and Berth Operator Association, warned that prolonged disruption in waterway cargo transport could collapse the country's supply chain.

"If cargo movement through waterways is disrupted due to the fuel shortage, the supply system could break down and create a humanitarian crisis," he said.

"The government should ensure adequate fuel supply for lighterage vessels to keep the supply chain running."

Thailand and Vietnam are urging public employees and businesses to adopt remote work as well as energy-saving habits, as the US-Israel war on Iran in the Middle East disrupts oil supplies and causes fuel price volatility.

Authorities in Thailand stated that government staff should transition to remote work when possible and requested that state offices maintain air conditioning at 26°C to save energy, reports Al Jazeera.

They also advised officials to cancel non-essential overseas travel.

In neighbouring Vietnam, the government has eliminated duties on various imported petroleum products to prevent shortages and stabilise the local market.

Furthermore, the Vietnamese government encouraged companies to permit remote work whenever feasible to reduce fuel demand.

It also recommended that citizens limit the use of private vehicles in favour of public transportation, cycling or carpooling.

After months of stability, Bangladesh’s currency has started to lose value against the US dollar as Bangladesh Bank stopped intervening in the market due to the possible impact of the US-Israel war against Iran.

Yesterday, the greenback was traded at a maximum of Tk 122.55 each, up from Tk 122.37 on the previous day.

The weighted average interbank exchange rate stood at Tk 122.49 per US dollar, up from Tk 122.43 a day earlier, according to the latest data from Bangladesh Bank.

The interbank exchange rate was Tk 122.36 last Thursday and Tk 122.33 on Wednesday, the data showed.

Central bank data shows that the weighted average interbank exchange rate against the greenback has continued to weaken since March 2 this year.

Officials of the central bank said the regulator has now stopped intervening in the market due to the possible impact, which is why the value of the taka has started to weaken against the US dollar.

They also noted that fuel prices in the international market have increased sharply, which is likely to raise import costs and lead to volatility in the forex market in the coming days.

Considering that potential impact, Bangladesh Bank halted purchasing US dollars from the market, they added.

Bangladesh Bank purchased more than $5 billion from the foreign exchange market since the beginning of this fiscal year until March 2.

However, between FY21 and FY25, Bangladesh Bank sold more than $25 billion from its foreign exchange reserves to meet import payments for fuel, fertiliser and food.

The new governor of Bangladesh Bank recently hinted that the regulator will provide US dollar support from forex reserves to import fuel if needed, officials said.

Due to Bangladesh Bank’s dollar purchase spree, the country’s foreign exchange reserves have continued to rise.

Forex reserves stood at $34 billion as of March 8 this year, according to Bangladesh Bank data. However, the reserves stood at $29.38 billion as per the IMF calculation.

On Saturday, eight leading economists of the country met the new governor of the central bank to discuss ways to address the possible impact of the Middle East crisis on the economy.

The economists suggested that Bangladesh Bank remain cautious about spending from the country’s foreign exchange reserves as tensions in the Middle East threaten to create fresh economic shocks.

They also warned that rising global fuel prices due to the Middle East crisis could increase the country’s import bills and eventually put pressure on the foreign exchange reserves.

The economists advised the central bank to explore alternative funding sources to settle fuel import payments instead of using the reserves.

For four years, Bangladesh has struggled to escape the inflation spiral unleashed by the Russian invasion of Ukraine in February 2022, a crisis that turned it into South Asia's highest-inflation economy.

Now another geopolitical shock is gathering force. On the tenth day of the US-Israel war on Iran, global oil prices have surged past $100 a barrel for the first time since that invasion, threatening to unleash yet another inflation storm on an already strained economy.

The uncomfortable irony is that the escalating war in the Middle East arrives just as a freshly elected government takes office and just as inflation had finally begun to slow.

Following a tightening monetary stance by the Bangladesh Bank, inflation had slipped below 9% – still high, but hinting that the long price surge might finally be losing momentum.

Oil soars 25%, gold drops as Iran war jolts global commodity markets

The latest data from the Bangladesh Bureau of Statistics reveal just how uneasy the inflation landscape still is. Overall inflation climbed to 9.13% in February 2026, a ten-month high. Even more worrying, food inflation – the measure that defines everyday living costs – jumped to 9.30%, the highest in 13 months.

For ordinary households, the pain is becoming structural. Wage growth stood at 8.06%, marking the 48th consecutive month in which income growth has lagged behind inflation.

US crude oil, the front-month West Texas Intermediate futures soared 30% to hit $118.28 a barrel in Monday (9 March) trading hours, while Brent, the international benchmark, jumped more than 25% to $116.67 per barrel.

The surge comes as the escalating US-Israel war on Iran has fuelled fears of prolonged disruption to shipments through the Strait of Hormuz, which carries one-fifth of the world's daily oil supply, while the UAE and Kuwait have begun cutting oil production after the Strait blockage.

Inflation shoots up to 9.13% in February, highest in 10 months

For Bangladesh, such shocks rarely remain distant geopolitical headlines. Even before oil crossed $100 per barrel, panic buying gripped petrol pumps, showing that government assurances and rationing did little to calm fears.

The country imports most of its fuel and fertiliser, so global oil spikes ripple through the economy: transport costs rise, electricity becomes more expensive, fertiliser and irrigation costs climb, shipping costs increase, and eventually the pressure spreads to food markets and consumer goods. In short, global oil shocks quietly reach domestic kitchens.

Bangladesh has faced this before. The Russian invasion of Ukraine sent fuel, fertiliser, and food prices sharply higher, pushing inflation above 9% and keeping it stubbornly elevated for years. Today, the macroeconomic environment is even more fragile.

Merchandise exports fell for the seventh consecutive month in February 2026, while private credit growth dipped to a record low of 6% in January. Even the General Economics Division (GED) of the Planning Commission could not look away – its February 2026 Monthly Economic Update & Outlook report highlighted that a revenue shortfall, combined with weak mid-year Annual Development Programme (ADP) utilisation, is creating mounting fiscal challenges.

Governments scramble to limit fallout of Iran war as oil prices surge

The pressure on the taka is a particular concern. From Tk86 in February 2022 to crossing Tk100 in September 2022, it has now stood at Tk122.5 against the US dollar. With the US-Israel war on Iran driving energy costs ever higher, a further weakening of the taka could sharply push up import bills, electricity and fuel costs, and production expenses, sending the economic burden soaring across Bangladesh.

This also creates a difficult dilemma for monetary policy. With inflation already high, there is little room to loosen policy to stimulate growth. Yet tighter financial conditions risk slowing investment and employment.

Whether this becomes another full-scale inflation storm will depend largely on how long the war persists and whether global energy supply and routes stabilise. But the early signals from markets are unsettling.

Bangladesh is bracing for a storm it cannot fully control, and the coming months will test both policy resilience and the patience of ordinary citizens.

Prime Minister Tarique Rahman will inaugurate the Family Card programme today (10 March) at the T&T playground in Banani, adjacent to the Korail slum, aiming to deliver economic benefits directly to citizens' doorsteps.

At a press conference on the launching programme at the Secretariat yesterday (9 March), Finance Minister Amir Khosru Mahmud Chowdhury described the initiative as non-political, non-partisan, and fully transparent, noting that it is designed to ensure the benefits of the nation's economy reach every citizen.

Social Welfare Minister Abu Zafar Md Zahid Hossain detailed the programme, explaining that under the pilot phase, 37,567 female-headed households have been selected to receive allowances ahead of Eid in March.

Each eligible family will receive one Family Card covering up to five members, with additional cards issued proportionally for larger households, he added. "If a woman head of household already receives other government allowances, those will be cancelled, while benefits to other family members will continue," the minister explained.

Under the pilot, each household will receive a monthly allowance of Tk2,500, with plans to expand to include food assistance in the future.

A total of Tk38.07 crore has been allocated for the pilot, with Tk25.15 crore (66%) earmarked for direct cash transfers and Tk12.92 crore (34%) for data collection, system development, card preparation, and programme management.

The pilot covers 13 city corporations and 15 wards across 13 districts, supported by committees at ward, union, upazila, and district levels.

Ward committees collected detailed household information—including socio-economic status, family size, education, housing, assets (TV, fridge, computer, mobile), and remittance flows—which was then verified at union and upazila levels.

During the pilot, data from 67,854 female-headed households were analysed using a Proxy Means Test (PMT) or poverty index, classifying families into five categories: ultra-poor, poor, lower-middle-class, middle-class, and upper-class.

After verification, 47,777 households in the ultra-poor, poor, and lower-middle-class categories were confirmed, and the final 37,567 households were selected based on factors such as existing government allowances, employment, or pension status.

"The entire selection process is software-driven through the PMT, leaving no room for corruption, favouritism, or manual interference," the Social Welfare Minister stressed.

Each selected household will receive a modern smart Family Card equipped with a chip, QR code, and Near-field communication (NFC) technology to ensure safety and durability.

Minister Zahid Hossain said that households were deemed ineligible if any member received a salary, allowance, grant, or pension from government, autonomous, or state-owned institutions, if the female head worked as a teacher or staff member in an MPO-listed institution, or if the household owned commercial licenses, large businesses, luxury assets (cars, air conditioners), or savings certificates worth Tk500,000 or more.

The Family Card allowance will be disbursed directly from the Social Welfare Ministry's social security budget to beneficiaries' mobile wallets or bank accounts via the G2P (Government-to-Person) system, he added.

During data collection, beneficiaries' account information was gathered to ensure timely, accurate, and interference-free delivery of funds directly to recipients

The share price of British American Tobacco Bangladesh Company (BATBC) came under significant pressure after it reported a major loss and sharply reduced its dividend, triggering a negative investor reaction and a notable fall in the stock.

Around the annual disclosure on 2 March, the company's share price dropped by nearly 21% in four consecutive trading sessions.

The sharp fall came as the company, which has long been known for paying high dividends, significantly reduced its dividend payout this year, prompting many investors to sell their holdings.

Even before declaring the dividend, its share price had fallen 7% and after the news was widely reported, selling pressure intensified further. In the trading sessions following the publication of the news, the share price declined by around 21%, reflecting investors' concerns over the company's weak earnings performance and lower dividend declaration.

The company's share price today regained 2.41% to Tk216.80 on the Dhaka stock exchange, while the premier index DSEX rose 132 points in a positive sentiment.

BATBC recommended a 30% cash dividend for 2025, sharply lower than the 300% cash dividend it distributed in 2024, reflecting a significant decline in its financial performance.

The multinational tobacco company reported a loss of Tk136 crore in the October-December quarter of 2025, indicating a sharp deterioration in earnings due to declining cigarette sales and higher operating costs.

According to the company, earnings per share (EPS) fell by 67% for the year ended 31 December 2025, mainly due to lower turnover and increased operating expenses. Costs rose amid inflationary pressure and higher levels of operational activity in certain segments of the business.

In July 2025, the company shut down its Dhaka factory and transferred plant, machinery, and cigarette manufacturing equipment to its Savar factory. The forced closure, along with relocation and restructuring costs, created a one-off negative impact of Tk715 crore on operating profit compared to the previous year.

For the full year ended December 2025, the company's EPS stood at Tk10.81, while it posted a loss per share of Tk2.53 in the fourth quarter.

The company will hold its annual general meeting on 30 April, with the record date set for 1 April to approve the financial statements and proposed dividend.

The government is managing the country's overall economic activities with a careful eye on the global economic situation and various crises, Finance Minister Amir Khasru Mahmud Chowdhury said today (9 March).

"The economic challenges arising from wars and other global factors cannot be avoided. Our current activities and future economic projections are determined with these realities in mind," he said at a press conference held at the ministry's conference room to inaugurate the "Family Card" programme which launches tomorrow.

Responding to a question on whether the government would continue austerity measures in spending, he said all ministries have been instructed to plan programmes according to the prevailing situation.

"The upcoming budget will also be prepared considering these circumstances," he added.

Asked about securing oil supply from China, Khasru said, "For energy security, we are seeking cooperation from various countries. Energy security is extremely important for the country, so the government is in discussions with all countries that can supply energy and seeking their support."

He also highlighted the "Family Card" initiative as a landmark poverty reduction effort.

"To my knowledge, such a large-scale poverty alleviation programme has not been undertaken in Bangladesh before. Through this, we aim to deliver economic benefits directly to people at their doorstep," he said.

The minister emphasised that the initiative reflects a gradual shift toward a welfare state in Bangladesh.

"In the past, economic benefits were distributed through patronage systems. Now, the government is directly reaching the common people," he noted.

Mobile telecom operators have urged the regulator to ensure priority allocation of fuel and electricity for network operations, warning that disruptions in supply could affect nationwide connectivity.

Limited availability of fuel at filling stations is creating risks for maintaining uninterrupted telecom services across the country, Association of Mobile Telecom Operators of Bangladesh (AMTOB) said in a letter to the chairman of the Bangladesh Telecommunication Regulatory Commission (BTRC) yesterday (9 March).

Companies have also expressed concern about sustaining operations during the upcoming Eid holidays amid government indications of possible load shedding.

AMTOB Secretary General Mohammad Zulfikar said mobile operators rely heavily on diesel- and petrol-powered generators to keep networks running, particularly during power outages.

"If fuel supply becomes uncertain, it could hamper maintenance activities, generator operations and emergency responses required to keep the telecom network functioning," he said.

The association noted that telecommunications have been declared an essential service by the government and currently support more than 185 million mobile subscribers across the country.

Telecom infrastructure also plays a vital role in enabling emergency communication, public safety services, digital financial transactions, business operations and government services.

According to the letter, reduced fuel availability at some filling stations has already created operational challenges for operators.

AMTOB warned that insufficient fuel supply could lead to network outages across large geographical areas, instability in data centres, equipment damage and longer service restoration times.

To prevent such disruptions, the association requested the regulator to coordinate with relevant authorities to ensure priority fuel allocation for mobile network operators and tower companies.

It also called for uninterrupted fuel supply for core network facilities and data centres, assured fuel availability for base transceiver stations (BTS) and maintenance vehicles, and reduced load shedding at critical telecom infrastructure sites.

Bangladesh has been facing persistent energy challenges in recent times as the country remains heavily dependent on imported fuels, including liquefied natural gas, petroleum products and coal.

The war in the Middle East has raised concern of fuel supply, triggering the government to adopt rationing measures. Conflict has also sparked panic buying, creating shortages at fuel pumps.

A tanker carrying more than 27,000 tonnes of diesel reached the waters of Chattogram Port today (9 March), amid a nationwide fear of supply shortage ten days after the conflict in the Middle East broke out.

Shipping agents said four more diesel tankers are scheduled to arrive at the port within a week.

Together, the five tankers will bring about 147,205 tonnes of refined diesel imported from Asian countries, according to port and shipping sources.

The arrival comes at a time when diesel demand has increased due to panic buying following the war in the Middle East. To manage stock levels, the government has recently reduced the daily fuel supply.

Port sources said the tanker Xiu Chi, carrying 27,204 tonnes of diesel from Singapore, entered the port's maritime area earlier in the day. According to vessel tracking data from MarineTraffic, the tanker is currently anchored near Kutubdia.

Another tanker, Lian Huan Hu, is expected to reach the port tonight from Singapore with nearly 30,000 tonnes of diesel. The tanker SPT Themis is scheduled to arrive on Thursday carrying 30,484 tonnes.

Two additional vessels — Raffles Samurai and Chang Hang Hong Tu — are expected to reach the port next Saturday, each carrying around 30,000 tonnes of diesel.

Nazrul Islam, managing director of Pride Shipping Lines, the local agent for the four tankers, told The Business Standard that the vessels are expected to arrive within a week according to schedule.

"Once they reach the port waters, the unloading will begin sequentially," he said.

According to the Bangladesh Petroleum Corporation (BPC), the country's normal daily demand for diesel is around 12,000 tonnes. The five tankers together could meet roughly 12 days of demand.

However, since Sunday, the government has reduced daily diesel supply to about 9,000 tonnes to maintain adequate reserves. At that rate, the incoming shipments could cover around 16 days of demand.

Existing stockpiles are expected to last another 16 to 17 days, meaning the combined supply would be sufficient to meet nearly a month of the country's diesel demand.

BPC data shows that diesel accounts for about 70% of Bangladesh's total fuel consumption, with most of it imported directly.

According to the National Board of Revenue, Bangladesh imported 2.328 million tonnes of diesel from nine countries between July and February of the current fiscal year.

Of that total, 78% came from Singapore, Malaysia, and India, while no diesel was imported from Middle Eastern countries during the period.

The Group of Seven (G7) finance ministers will ‌discuss on Monday a joint release of oil from emergency reserves coordinated by the International Energy Agency, the Financial Times reported.

Three G7 countries, including ⁠the US, have so far expressed support for the idea, the FT said citing sources, and added that the ministers and the IEA Executive Director Fatih Birol will hold a call to discuss the impact of the Iran ‌war.

The ⁠report comes as oil prices surged more than 25% on Monday to their highest levels since mid-2022 as some major producers cut ⁠supplies and fears of prolonged shipping disruptions gripped the market due to the expanding US-Israeli ⁠war with Iran.

The IEA and the G7 presidency did not respond to ⁠requests for comment outside regular business hours.

Bangladesh Bank (BB) has appointed observers at National Bank, Al-Arafah Islami Bank, Premier Bank, and IFIC Bank to closely monitor their activities.

The central bank made the decision this week.

“The decision to appoint observers at these banks is part of a continuous process,” said Arief Hossain Khan, executive director and spokesperson of Bangladesh Bank.

Munir Ahmed Chowdhury, director of the Bank Supervision Department-12 of BB, has been appointed as an observer to the National Bank.

Mohammad Anisur Rahman, director of the Islamic Banking Regulations and Policy Department, has been assigned to observe Al-Arafah Islami Bank.

ANM Moinul Kabir, director of the Payment Systems Department-1, has been appointed to Premier Bank.

AKM Kamruzzaman, director of the Forex Reserve and Treasury Management Department-1, has been appointed to IFIC Bank.

The central bank usually appoints observers to banks whose financial health is deteriorating.

Observers take part in board meetings and monitor the banks’ operations. They are withdrawn once the financial health of the bank improves.

After the fall of the Awami League-led government on August 5, 2024, the central bank restructured the boards of 14 banks, including these four lenders.

Islami Bank Bangladesh PLC has approved a proposal to bring US-based B100 Holdings LLC as a strategic investor in its mobile financial services subsidiary mCash Ltd, according to a price sensitive disclosure issued yesterday (8 March).

The decision was taken at the bank's board meeting held yesterday at its head office in Dhaka.

According to the statement, the bank approved the onboarding of B100 Holdings as a strategic partner in mCash Ltd, which operates the bank's mobile financial services platform, subject to compliance with applicable legal and regulatory requirements.

As part of the plan, the paid-up capital of mCash will be increased in phases to Tk500 crore, with Islami Bank maintaining a minimum 51% equity stake in the company. B100 Holdings may acquire up to 48.99% ownership through the subscription of shares, subject to approval from the mCash board and relevant regulatory authorities.

The proposed investment is expected to strengthen the capital base of mCash and support the expansion of digital financial services under its mobile financial services platform.