Newly appointed Labour and Employment Minister Ariful Haque Chowdhury today (18 February) announced a 100-day action plan focused on strengthening labour welfare, improving industrial relations, enhancing workplace safety and ensuring effective implementation of labour laws.

"Our mission is one. People's expectations are high, and we must work accordingly. To deliver results, we have to work as a team," he said while addressing officials and employees of the ministry on his first working day after taking oath as minister.

He stressed that all activities would be guided by the party's election manifesto and existing policy guidelines. "If we work together with sincerity, we will succeed," he added.

The minister said, "The ministry would review activities carried out over the past year to identify gaps and areas needing improvement. This is our country. We must determine what we aim to achieve within the next 100 days."

Addressing officials, he urged them to utilise their experience and strictly follow the Rules of Business in discharging their duties. "We will not go beyond the rules. Inform the appropriate authorities clearly about what is necessary," he said.

Highlighting the upcoming holy month of Ramadan and Eid-ul-Fitr, the minister directed officials to remain proactive to prevent labour unrest, particularly in labour-intensive industries and factories.

State Minister for Labour and Employment Nurul Haque Nur, who also joined the meeting, proposed preparing a three-month work plan to demonstrate tangible achievements and ensure stability in the industrial sector ahead of Eid.

Senior officials of the ministry, including Secretary Sarwar Jahan Bhuiyan, were present at the meeting.

Exports from the Port of Los Angeles, the busiest US gateway for ocean trade, fell 8% in January to the lowest monthly output in nearly three years, Executive Director Gene Seroka said on Tuesday.

"Exports to China look dismal," Seroka said after the Port of Los Angeles handled 104,297 20-foot equivalent units (TEUs) of loaded export containers in January.

President Trump's aggressive use of tariffs has upended global trade and retaliatory trade duties from China and other nations have hit US exporters like farmers particularly hard.

Soybean shipments from the Port of Los Angeles to China dropped 80% last year, Seroka said, adding that the trade did not improve in November or December, following discussions between representatives of the two nations on the sidelines at the Asia-Pacific Economic Cooperation Summit.

"There's not much that the United States is exporting to China these days," said trade expert Chad Bown, a senior fellow at the Peterson Institute of Economics, who added that outgoing US shipments of everything from beef and corn to crude oil and coal also fell in 2025.

Closely watched imports to the Port of Los Angeles came in at 421,594 TEUs in January, down 13% from the unusually strong result the year earlier, Seroka said.

So far, imports in February appear relatively flat compared with a year earlier. Imports will slow in March due to China factory closures for the Lunar New Year holiday, he said.

Still, Seroka expects total first-quarter volume at the port to fall less than 10% versus the year-earlier quarter, when US importers were rushing in goods before President Donald Trump's threatened tariffs on countries like China took effect.

"I don't see the economy or cargo volume dropping off a cliff after that, and even though holiday sales were softer than we would have liked, I don't see a dire situation," Seroka said, referring to lackluster US December retail sales that signaled potential weakness in consumer spending that drives about 70% of the nation's total economic activity.

Gold dropped more than 2 percent on Tuesday, as holidays in major markets hit liquidity, while a stronger dollar and easing geopolitical tensions added to the pressure.

Spot gold dropped 1.5 percent to $4,917.90 per ounce by 0800 GMT after hitting $4,862 per ounce, its lowest level in more than a week. US gold futures for April delivery lost 2.2 percent to $4,936.60 per ounce.

“Thin liquidity with the holidays in the last 24 hours, especially in China and Asia, but also obviously in the United States too, means we just lacked a bid in the market,” said Kyle Rodda, senior market analyst at Capital.com.

Mainland Chinese, Hong Kong, Singapore, Taiwan and South Korea markets are closed for the Lunar New Year holidays. US markets were shut on Monday for Presidents’ Day.

The US dollar index rose 0.3 percent against a basket of currencies, making greenback-priced bullion more expensive for holders of other currencies.

The minutes of the Federal Reserve’s January meeting, due Wednesday, could give investors further clues about the central bank’s future monetary policy path. The market currently expects the first of three interest rate cuts for the year to be in June, according to CME’s FedWatch Tool.

“Now it’s going to be interesting to see what these FOMC minutes say in the sense that the markets want many more rate cuts now than what the Fed said that it would do,” said Ilya Spivak, head of global macro at Tastylive.

Non-yielding bullion tends to do well in low-interest-rate environments.

On the geopolitical front, US President Donald Trump said Monday he would be “indirectly” involved in US–Iran nuclear talks in Geneva on Tuesday, while Ukrainian and Russian representatives will also meet there this week for US-mediated peace discussions.

“The immediate range top (for gold) is somewhere around $5,120, but the next real kind of objective here is back to the highs at $5,600 or so, and then of course, we march to record highs,” Spivak said.

The Bangladesh Securities and Exchange Commission (BSEC) has decided to extend the lock-in period for shares held by sponsors, directors, and placement shareholders of Asiatic Laboratories Limited due to unauthorized business diversions and failure to utilize IPO funds according to the original plan.

The decision was made during the 999th Commission meeting held today, presided over by BSEC Chairman Khondoker Rashed Maqsood.

According to a BSEC press release, Asiatic Laboratories was previously permitted to raise TK 95 crore through an Initial Public Offering (IPO) on August 31, 2022, for business expansion, factory construction, and loan repayment.

However, the company has failed to utilize the IPO funds as per the prospectus.

An inspection by the Dhaka Stock Exchange (DSE) revealed that on September 28, 2025, the company announced Price Sensitive Information (PSI) regarding the construction of a 32-story luxury building without conducting any project evaluation, feasibility tests, or obtaining necessary regulatory approvals from RAJUK and environmental authorities.

Furthermore, entering the real estate or hotel business is inconsistent with the company’s Memorandum of Association (MoA).

In the interest of general investors and the capital market, the Commission has decided to extend the lock-in period for shares held by 183 sponsors, directors, and placement shareholders mentioned in the prospectus.

The lock-in will remain in effect for an additional three years or until the completion of the proposed building and the acquisition of a RAJUK occupancy certificate, whichever is later.

In the same meeting, the BSEC also approved the draft “Bangladesh Securities and Exchange Commission (Capital Market Information Disclosure and Whistleblower Protection) Rules, 2026”. The draft will be published in national dailies and on the Commission’s official website to solicit public opinion.

Bangladesh Bank (BB) has clarified that no final decision has been taken regarding the issuance of digital bank licences, amid reports published in several national dailies.

As part of the government's initiative to expand technology-driven inclusive financial services and build a "Cashless Bangladesh," Bangladesh Bank issued a public notice on August 26, 2025, inviting applications for establishment of digital banks. Applications received within the stipulated timeframe are currently being evaluated in accordance with relevant policies and prescribed procedures.

The evaluation process is being conducted in phases by three separate committees: the Technical Evaluation Committee (TEC), the Business Evaluation Committee (BEC) and the Financial Evaluation Committee (FEC).

At the 447th meeting of the Board of Directors held on February 16, 2026, progress reports on the ongoing evaluation process were presented to the Board alongside other agenda items, it said.

According to the central bank, discussions at the meeting were limited strictly to procedural aspects, including the evaluation process and criteria. No decision regarding the granting of digital bank licenses was taken at the meeting.

However, on the same day, a small group of bank officials reportedly organized a press conference on the digital bank licensing issue without prior authorisation from the appropriate authority. Despite the absence of any decision-making agenda on the matter, several national newspapers published reports without adequately verifying the information, leading to what the central bank described as misleading coverage.

Bangladesh Bank expressed concern that such reports could create confusion and misperceptions among the public. The central bank urged media outlets to verify information with the appropriate authorities before publication and to avoid one-sided reporting on controversial matters. It also called on the media to uphold responsible journalism by presenting the views of all relevant parties in the public interest.

Stocks extended their losing streak for a second straight session today (17 February), with key indices edging lower as investors adopted a cautious stance following the swearing-in of the new government.

The benchmark DSEX of the Dhaka Stock Exchange (DSE) fell 18 points to settle at 5,570. The blue-chip DS30 index also declined by 9 points to close at 2,126. Market breadth remained negative, as 238 issues declined against 131 advances, while 27 remained unchanged.

Turnover at the premier bourse slightly decreased to Tk1,222 crore compared to the previous session, indicating subdued participation.

Market insiders said investors remained watchful of the evolving political landscape after the new government took oath today, prompting many to lock in recent gains rather than take fresh positions.

Analysts expect investors to remain cautious in the near term as they assess policy signals from the new administration.

In its daily market review, EBL Securities Limited noted that profit-booking sentiment gripped the market for the second consecutive session, with investors choosing to realise gains from the recent election-driven rally and remain cautious amid the evolving political situation.

The market experienced see-saw trading throughout the session, reflecting a tug-of-war between buyers and sellers. Opportunistic investors continued to accumulate momentum-driven stocks, taking advantage of the prevailing risk-averse sentiment. However, late-session profit-taking, particularly in major large-cap scrips, ultimately dragged the indices into negative territory.

Among the most traded stocks were Square Pharma, ACI, City Bank, Dhaka Bank and BRAC Bank, reflecting active participation in heavyweight and banking sector counters.

On the gaining side, Shurwid Industries rose 9.83%, followed by AB Bank, BIFC, BD Welding and Tung Hai Knitting.

Meanwhile, Bay Leasing topped the losers' chart with a 9.25% decline, followed by Phoenix Finance, Midas Finance, Hamid Fabrics and AB Bank First Mutual Fund.

Two listed general insurers, Crystal Insurance Company Limited and Sena Insurance PLC, have declared cash dividends for the year ended 31 December 2025, alongside mixed investor reactions despite stronger earnings.

Crystal Insurance's board of directors has recommended a 12% cash dividend, after reporting higher profitability.

The company reported earnings per share (EPS) of Tk3.34, net asset value (NAV) per share of Tk27.65 and net operating cash flow per share (NOCFPS) of Tk1.74 for the year ended 31 December 2025.

In comparison, it posted EPS of Tk3.13, NAV per share of Tk25.67 and NOCFPS of Tk2.20 for 2024.

Its annual general meeting is scheduled for 30 March at 11:00am via a digital platform, with 9 March fixed as the record date.

Following the dividend declaration at the Dhaka Stock Exchange (DSE), Crystal Insurance's share price fell 4.58% today (17 February) to close at Tk81.20, reflecting investor reaction despite improved earnings performance.

Meanwhile, Sena Insurance has recommended a 15% cash dividend for 2025. The insurer reported EPS of Tk5.17, NAV per share of Tk28.58 and NOCFPS of Tk5.00 for the year, compared to EPS of Tk4.29, NAV per share of Tk25.16 and NOCFPS of Tk7.23 in the previous year.

The company will hold its AGM on 31 March at 11:30am under a hybrid system, allowing both physical presence and participation through a digital platform. The record date has also been set for 9 March.

In a separate disclosure, Sena Insurance said its board has decided to purchase 11.31 decimals of land in Narayanganj' Rupganj upazila for Tk1.28 crore, excluding registration and other fees, subject to approval from the Insurance Development and Regulatory Authority (Idra).

After the announcements, Sena Insurance's share price declined 3.13% to Tk58.90.

The pre-IPO shares held by the sponsors, directors and placement shareholders of Asiatic Laboratories will remain under lock-in until three years beyond the existing lock-in expiry date or until the completion and commercial operation of its proposed 32-storey building — whichever occurs later.

The decision was taken by the Bangladesh Securities and Exchange Commission (BSEC) today (17 February), according to a press release. The extended lock-in will apply to shares held by 183 individuals and institutions mentioned in the company's prospectus.

The regulator said the decision was made considering recommendations from an inspection report of the Dhaka Stock Exchange, prevailing market conditions and the interest of general investors.

Asiatic Laboratories received approval from the commission at its 837th meeting on 31 August 2022 to raise Tk95 crore through an initial public offering (IPO). According to its prospectus, the company planned to use the IPO proceeds for business expansion, including purchase and installation of machinery, construction of a factory building, repayment of bank loans and covering issue management expenses.

However, the company has yet to complete the utilisation of the IPO funds.

Without completing the utilisation process and without conducting project evaluation, feasibility studies or securing necessary regulatory approvals — including building plan approval from RAJUK and environmental clearance — the company disclosed price-sensitive information on 28 September 2025, announcing an ambitious plan to construct a 32-storey building.

The BSEC also noted that entering into the real estate or hotel business through the construction of such a building is not consistent with the company's Memorandum of Association. An inspection conducted by the DSE identified these inconsistencies.

Premier Cement Mills PLC has received regulatory approval to raise Tk161 crore through the issuance of preference shares, as the company moves to restructure its balance sheet and reduce rising finance costs.

The Bangladesh Securities and Exchange Commission (BSEC), in a letter dated 16 February, approved the cement maker's plan to issue 322 fully redeemable, non-convertible, non-participating and cumulative preference shares of Tk50 lakh each at par, totalling Tk161 crore, under the Securities and Exchange Commission (Issue of Capital) Rules, 2001.

According to the company, the proceeds from the preference shares will be used to restructure its existing balance sheet and repay high-cost short-term liabilities, in line with a decision taken by its board of directors and later endorsed by shareholders at an extraordinary general meeting.

Following the disclosure filed with the Dhaka Stock Exchange today (17 February), Premier Cement's share price remained unchanged at Tk39.30.

Preference shares are a class of stock that entitles holders to receive dividends ahead of ordinary shareholders. In the event of liquidation, preference shareholders also have priority over common shareholders in claims on company assets.

The approval comes after an earlier setback. In June 2025, the BSEC rejected Premier Cement's initial application to issue the preference shares, citing the absence of required provisions in the company's Memorandum of Association.

The company later amended the memorandum and submitted a fresh application in October 2025.

In a letter issued on 5 October, the commission asked the bourse to provide its opinion on the proposed issuance within 15 working days. The DSE later gave its consent, paving the way for the commission's final approval.

Explaining the move, the company said rising bank lending rates had significantly increased its financing burden.

"The interest rate on bank loans has increased significantly. That is why the company is going to issue preference shares," it said in a statement, adding that lending rates from local banks have exceeded 14%.

Repaying part of its existing loans would help cut interest expenses, it added.

Financial disclosures show Premier Cement's performance weakened in the first half of FY26. Revenue for the July-December period slipped to Tk1,059 crore, while net profit fell 49% year-on-year to Tk1.97 crore.

The company attributed the sharp decline mainly to higher finance costs.

As of December 2025, Premier Cement reported Tk679 crore in long-term loans and Tk1,693 crore in short-term borrowings, alongside Tk24 crore owed to directors.

Finance costs rose to Tk122 crore during the period, up from Tk89 crore a year earlier, largely due to elevated interest rates.

The fresh capital injection is expected to ease liquidity pressure and strengthen the company's financial structure amid a challenging operating environment.

India’s Adani Group said Tuesday it plans to invest $100 billion by 2035 to develop “hyperscale AI-ready data centres”, a boost to New Delhi’s push to become a global artificial intelligence hub.

The announcement comes as India hosts a five-day global AI summit that will see deliberations over issues ranging from job disruption to child safety.

The summit will gather 20 national leaders and 45 ministerial-level delegations -- with the key day on Thursday -- who will rub shoulders with tech CEOs including Sam Altman of OpenAI and Google’s Sundar Pichai.

The $100 billion investment would catalyse an additional $150 billion in spending across “server manufacturing, advanced electrical infrastructure, sovereign cloud platforms and supporting industries”, the Adani Group said in a statement.

“Together, this is projected to create a $250 billion AI infrastructure ecosystem in India over the decade,” the statement noted.

The sprawling ports-to-power conglomerate said its vision is “anchored” by key partnerships with Google -- which aims to establish a massive data centre campus in the coastal city of Visakhapatnam -- and Microsoft.

“The Adani Group is also in discussion with other major players seeking to establish large scale campuses across India thereby further cementing its position as India’s premier AI infrastructure partner,” the statement added.

Last year India leapt to third place -- overtaking South Korea and Japan -- in an annual global ranking of AI competitiveness calculated by Stanford University researchers.

But despite plans for large-scale infrastructure and grand ambitions for innovation, experts say the country has a long way to go before it can rival the United States and China.

A total of 2,100 metric tonnes of non-basmati coarse rice have been imported through Benapole port over six working days.

The consignments, brought in through 15 separate shipments, entered the port's 31 No transhipment yard, Port Director Shamim Hossain said today (17 February).

According to port sources, the imports took place between 27 January and 17 February. Earlier, 6,128 metric tonnes of rice were imported through the port during the four months from August to November last year.

On 18 January, the government allowed 232 importing firms to bring in 2,00,000 metric tonnes of rice, setting 3 March as the deadline for completing the imports and marketing the grain in Bangladesh.

The importing firm Haji Musa Karim & Sons brought the rice from India, while C&F agent M/s Bhuiya Enterprise is handling the clearance process.

Abdus Samad, proprietor of Haji Musa Karim & Sons, said the firm imported the 2,100 metric tonnes of coarse rice from India in 58 trucks over six days. The import cost up to Benapole port stood at Tk50 per kg, and the rice is expected to be sold in the open market at Tk51 per kg, he added.

Port Director Shamim Hossain said officials concerned have been instructed to ensure the quick release of the imported consignments from the port.

The government has partially reduced value-added tax (VAT) on liquefied petroleum (LP) gas, aiming to stabilise prices of the essential fuel used in households and industry while keeping it affordable for consumers.

In a notification issued yesterday (17 February), the National Board of Revenue (NBR) has now scrapped VAT at the production and trader stages as well as the advance tax at import, replacing them with a single 7.5% VAT levied only at the import stage.

Under the previous system, LP gas faced 7.5% VAT at both the production and trader levels, alongside a 2% advance tax at the import stage.

The tax authority said the measure — effective until 30 June — was taken in the public interest to help stabilise LP gas prices and maintain them within consumers' purchasing capacity.

The notice stated that the government has decided, in the public interest, to partially reduce VAT on LP gas to stabilise the market price of this essential product used in industry and households and keep it within consumers' purchasing capacity.

The decision followed an application from the LPG Operators Association of Bangladesh and recommendations from the Ministry of Power Energy and Mineral Resources.

According to the NBR, the revised structure will reduce the overall VAT burden on consumers by around 20% compared with the previous system. Industry entrepreneurs say the change could translate into a modest drop in market prices.

Speaking on condition of anonymity, the chief financial officer of a leading LP gas supplier said a 12kg cylinder currently priced at Tk1,206 could fall by about Tk15 due to the VAT restructuring.

Officials maintain the tax adjustment will not hurt government revenue. An NBR official explained that compliance gaps in the LP gas supply chain had allowed some operators to evade VAT, particularly because advance tax at import was rebateable.

By shifting VAT collection to the import stage, authorities expect to reduce evasion — potentially maintaining or even increasing revenue collections.

The government’s development expenditure in the first seven months of the current fiscal year 2025-26 (FY26) has slumped to its lowest level in at least 16 years amid fiscal restraints and political disruptions.

Ministries and divisions spent just Tk 50,556 crore – a mere 21.18 percent of the total Annual Development Programme (ADP) outlay – during the period, shows Implementation Monitoring and Evaluation Division (IMED) data published yesterday.

During the same period in FY25, when operations were disrupted by a mass uprising and administrative instability, the ADP implementation rate stood at 21.52 percent. The rates were 27.11 percent and 28.16 percent in FY24 and FY23, respectively.

The slowdown is particularly acute in the health sector, which has recorded dismal implementation rates despite growing concerns about healthcare accessibility.

The Medical Education and Family Welfare Division has utilised only 2.98 percent of its allocation, while the Health Services Division has managed just 6.59 percent, according to the IMED.

Md Deen Islam, research director at Research and Policy Integration for Development (RAPID), blamed lackings in “institutional capacity” for the slow spending.

“The underperformance in the health sector reflects deeper governance challenges. In many cases, those in charge hesitate to take bold decisions, particularly when procurement-related scrutiny creates a climate of fear. That affects implementation,” he added.

The underperformance comes as Bangladesh continues to grapple with one of the world’s highest rates of out-of-pocket health expenditure.

This has led to a “structural vulnerability that demands urgent policy attention,” Islam said.

“A single chronic or terminal illness can push a non-poor family into poverty,” he warned, citing data from the Multiple Indicator Cluster Survey showing stagnation in key health indicators.

He emphasised that without immediate increases in health investment and execution, Bangladesh risks falling further behind on crucial development metrics.

The broader spending slump reflects multiple headwinds. For the current fiscal year, the government allocated Tk 238,695 crore for the ADP, including funds from autonomous bodies.

However, during the July-January period, utilisation of both state funds and foreign loans has declined sharply.

Foreign fund spending fell to approximately Tk 18,668 crore, while government funds amounted to Tk 28,052 crore, down from Tk 30,096 crore in FY25.

This deceleration comes as the interim government implemented a reduced, austerity-focused ADP that slowed or postponed certain projects initiated by the previous administration.

Planning ministry officials note that several contractors fled the country before completing their work following the mid-2024 political changeover, further hampering implementation.

RAPID’s Islam largely agreed, noting that smaller projects may have received less attention as larger initiatives were prioritised.

Infrastructure sectors have fared considerably better than social services.

Among the top 15 recipients of allocations, the Ministry of Water Resources achieved the highest implementation rate at 41.10 percent, followed by the Energy and Mineral Resources Division with 40.66 percent, and the Local Government Division with 36.91 percent.

For Islam, the health shortfall is particularly worrying given Bangladesh’s demographic outlook.

He warned, “Within 15 to 20 years, Bangladesh will gradually transition into an ageing society. Without adequate investment in health infrastructure and human resources, fiscal pressure will intensify.”

He urged authorities to view health spending through an economic lens, noting that Bangladesh maintains a low ratio of nurses and support staff compared to doctors.

“Expanding this workforce would improve service delivery while generating jobs. Health investment is not just social spending, it is also an economic strategy,” he said.

However, Islam said ADP implementation may accelerate under the newly elected political government.

A modest uptick in January offered limited encouragement. The month recorded 3.64 percent implementation of the revised ADP, marginally up from 3.55 percent in January 2024.

“As an elected party, the BNP will have to deliver on its pledges, including job creation, expanding health services, and reducing out-of-pocket costs,” Islam said.

Ashikur Rahman, principal economist at the Policy Research Institute of Bangladesh, concurred that a full-fledged political government could help strengthen ADP spending by accelerating countrywide development activities.

The reciprocal trade deal signed by the interim government with the United States has raised questions regarding the economic sovereignty of Bangladesh, especially in decisions on trade, energy and security.

Critics point to several binding and conditional clauses that allow Washington to terminate the agreement and restore steep tariffs if its concerns are not addressed.

For example, take the digital trade facilitation provision in the deal.

The agreement says that if Bangladesh signs a new digital trade deal with any country that jeopardises essential US interests, Washington may terminate the pact and reimpose the 37 percent reciprocal tariff on Bangladeshi exports.

That was the tariff rate the US had proposed in April 2025.

The same condition applies if Bangladesh enters into a new bilateral free trade or preferential agreement with what the US terms “a non-market country” -- nations it does not recognise as market economies.

The agreement says that if consultations with Bangladesh fail to resolve American concerns, the United States may withdraw from the deal and reinstate the 37 percent tariff.

The rate is high enough to sharply reduce Bangladesh’s exports to the US, a costly prospect given that the country earns roughly one-fifth of its export revenue from garments and other goods sold to American buyers.

The deal, signed on February 9 between the interim government and the Trump administration, also restricts Bangladesh from purchasing “any nuclear reactors, fuel rods, or enriched uranium from a country that jeopardises essential US interests”.

An exception applies to “the procurement of proprietary materials for which there are no alternative suppliers or technologies, or materials contracted prior to the entry into force of this agreement required for existing reactors”.

This suggests that supplies for the Rooppur Nuclear Power Plant, built with Russian technical and financial support through Russian state corporation Rosatom, may continue.

But any future nuclear project could fall under tighter scrutiny.

Citing the section on economic and national security, BRAC Executive Director Asif Saleh, in a Facebook post, said, “This is the most important and controversial part of the agreement, as it raises questions about ‘sovereignty’.”

The section adds, “The United States shall work with Bangladesh to streamline and enhance defence trade.”

On the nuclear restriction, Saleh said, “This could create risks for Bangladesh’s energy security.”

The deal also opens the door for US direct investment to “explore, mine, extract, refine, process, transport, distribute and export critical mineral resources”.

In addition, Bangladesh is required to purchase $3.5 billion worth of American agricultural products. This includes at least 700,000 tonnes of wheat annually for five years, at least $1.25 billion or 2.6 million tonnes of soy and soy products, and cotton.

Bangladesh shall also need to buy 14 Boeing aircraft initially and $15 billion worth of liquefied natural gas (LNG) over 15 years, apart from increased purchases of US military equipment and limits on defence equipment purchases from certain countries.

“It appears more like an imposed purchasing obligation than free trade,” said Saleh. “Regardless of Bangladesh’s actual needs or capacity, it effectively ensures profits for US companies.”

Mustafizur Rahman, distinguished fellow at local think tank Centre for Policy Dialogue (CPD), said bulk commodities in Bangladesh are usually imported by private sector businesses, not the government.

If traders can source goods more cheaply elsewhere, he asked, why would they buy from the United States?

In that case, Rahman said the government may have to offer incentives to persuade private importers to purchase American products, adding to fiscal pressure.

In an interview with The Daily Star last week, Professor Selim Raihan, executive director of the South Asian Network on Economic Modeling (Sanem), said that Bangladesh could be compelled to buy more expensive goods even when cheaper alternatives are available.

“If we find a cheaper source elsewhere, we may not be able to choose it,” he said. “This will put additional pressure on our foreign exchange.”

“How are we going to finance aircraft purchases and energy imports? There is a risk of increased reliance on foreign loans,” Raihan said.

Anwar-ul Alam Chowdhury (Parvez), president of the Bangladesh Chamber of Industries, said the agreement indicates that Bangladesh should reduce its dependence on China for raw materials.

The deal also contains a provision on Rules of Origin. It says that if the benefits of the agreement accrue substantially to third countries or their nationals, either party may establish Rules of Origin to reflect the intention of the agreement.

Parvez said the third country clause should have been defined more clearly.

The agreement has not been made public, with officials citing a non-disclosure provision. Amid growing concern, the Chief Adviser’s Office said in a statement that it had inserted “an exit clause” into the deal.

“There was no scope for any country to terminate the agreement,” it added. The statement did not clarify whether Bangladesh exports would again face a 37 percent tariff, up from 19 percent, if the agreement were terminated.

Our business community is facing mountain-sized challenges right now. In this situation, the first priority must be improving the law and order situation – especially curbing extortion.

Those appointed to the ministries will need to be held accountable for what they plan to do in the first 90 days and what they will do afterwards. We don't want to see five years pass with everyone just sitting idle.

The selections made for the cabinet seem appropriate. Now, the real test is how much they can deliver. The government will have to take many policies, and it will be important to see how supportive the officials and opposition parties are in implementing them.

There are immense challenges in the economy. Investor confidence, especially in terms of investment, is almost nonexistent. But we are also seeing potential. Amid this, the government will need to manage challenges, including opposition movements. Whenever a situation arises, officials will try to seize the opportunity.

Bangladesh's total foreign exchange reserves have risen to $29.86 billion, Bangladesh Bank (BB) Spokesperson and Executive Director Arif Hossain Khan said this evening (17 February).

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

The rise in remittance inflows through formal banking channels has contributed significantly to this growth.

In the first month of 2026, Bangladesh received $3.17 billion in remittances, the third-highest monthly inflow on record. This marks a 45.41% increase compared to the same month in 2025.

In January of the previous year, remittance inflows stood at $2.18 billion.

A senior Bangladesh Bank official told The Business Standard that the supply of dollars in banks has increased due to higher remittance inflows.

To prevent the dollar rate from falling, the central bank has been purchasing dollars through auctions, he added.

The official further said that by buying dollars from commercial banks, Bangladesh Bank is simultaneously boosting reserves while maintaining stability in the exchange rate.

Bangladesh’s information technology (IT) exports grew 13.54 percent in the first five months of fiscal year 2025-26, buoyed by accelerating global artificial intelligence (AI) adoption and the widening digitalisation of services, according to government data.

Between July and November, the sector’s exports reached $269.84 million, up from $237.67 million in the same period a year earlier, shows Export Promotion Bureau (EPB) data. IT service exports stood at nearly $629 million in fiscal year 2024-25.

The gains were broad-based across the sector, which encompasses software development, IT-enabled services, computer consultancy, and hardware support, though the composition of growth reveals a market in transition.

SOFTWARE GETS BOOST, CONSULTANCY STUMBLES

Installation and hardware support posted the sharpest growth, nearly tripling to $3.09 million, a 136 percent year-on-year jump, reflecting rising demand for physical infrastructure alongside digital transformation.

Software exports also surged strongly, climbing 54 percent to $21.39 million, as global clients ramped up demand for custom solutions, automation tools and AI-integrated applications.

IT-enabled services, including business process outsourcing, expanded more steadily, rising 16.74 percent to $235.72 million.

Computer consultancy, however, contracted sharply, falling 53.9 percent to $9.64 million, suggesting clients increasingly prefer bundled service packages over standalone advisory engagements.

According to industry executives, AI is simultaneously expanding the market and compressing the workforce needed to serve it.

Ferdous Mahmud Shaon, managing director (MD) of Cefalo, a Dhaka-based software firm with around 300 employees, said his company has seen a substantial rise in orders as businesses worldwide race to embed AI into their operations.

“AI is not replacing software, it is actually increasing the need for new types of software,” Shaon said. “Many processes still require customised solutions, integration and ongoing development.”

At the same time, productivity gains are reshaping how companies hire. The Cefalo MD noted that AI tools are enabling companies to produce software faster and at lower cost.

“Previously a task might require ten engineers; now five can deliver the same output using AI tools,” Shaon said.

Cefalo has invested heavily in AI-assisted development tools, enabling teams to complete projects 25-50 percent faster.

While this improves competitiveness and delivery speed, it also creates pressure on employment, leading to downsizing in some cases, a trend visible across global tech companies as well.

“Companies must adopt these technologies or risk being pushed out of the market,” Shaon said, noting that AI is reducing routine work. “In the future, we will need to focus on more complex and sophisticated tasks that machines cannot easily handle.”

He also cautioned that the growth trajectory may remain moderate in the short term due to broader global uncertainties.

Despite the solid headline figure, Shaon flagged three structural risks to sustained growth: the global economic slowdown dampening client budgets, domestic instability undermining Bangladesh’s appeal as an outsourcing destination, and AI-driven workforce disruption requiring rapid reskilling.

Power Grid Company of Bangladesh (PGCB), a state-owned power transmission company, is set to convert Tk1,324 crore in share money deposits received from the government for its development projects into preference shares.

In a letter dated today (17 February), the Bangladesh Securities and Exchange Commission (BSEC), the capital market regulator, approved the issuance of the shares in favour of the secretary of the Power Division under the Ministry of Power, Energy and Mineral Resources.

Under the government financing structure, 60% is treated as equity and the remainder as loans, with the equity portion recorded as deposits for shares. At the end of June 2025, PGCB's outstanding share money deposits stood at Tk2,954.81 crore.

Power Grid has already issued 20.10 crore general shares and 1,014.65 crore irredeemable and non-cumulative preference shares at Tk10 each in favour of the secretary of the Power Division.

According to company sources, Tk1,324 crore was received from the government in the 2023–24 fiscal year, and the company is now proceeding with the share issuance to comply with a notification issued by the Financial Reporting Council (FRC).

Preference shares are company shares where dividends are paid to shareholders before dividends are distributed to common stockholders. The government will receive dividends on the preference shares at a fixed rate before any dividend is declared or distributed to general shareholders.

The dividend rate for the government on the preference shares will be determined as a percentage of total capital, calculated as 25% of the assumed share of net profit after tax attributable to the preference shareholders.

Explaining the dividend mechanism to The Business Standard, Power Grid Company Secretary Md Jahangir Azad said, "Suppose preference shares account for 25% of the company's paid-up capital. If the company makes a profit of Tk100 in a financial year, the entitlement of the preference shares would be Tk25 from that profit. The government would then receive a 25% dividend on this Tk25 allocated to the preference shares."

Regarding the issuance of preference shares, he added, "We are instructed to convert share money deposits into shares within six months after the end of the fiscal year. That is why we are gradually converting share money deposits into preference shares."

In the first half of the current fiscal year, Power Grid's revenue grew by 9% to Tk1,671 crore, and profit soared 236% to Tk476 crore.

Its shares closed at Tk33.70 each yesterday, down 2.03% from the previous trading session.

Iqbal Hasan Mahmud Tuku, set to become the minister for Power, Energy and Mineral Resources, expressed confidence in addressing Bangladesh's long-standing energy challenges, drawing on his previous experience leading the ministry.

Speaking shortly after taking the oath, the Sirajganj-2 MP acknowledged the sector's complexity. "There are lots of problems in our power and energy sector. It is a technical matter. I need lots of brainstorming to identify the problems," he said. Emphasising careful preparation, Iqbal Hasan added, "It is very difficult to solve, but we will do homework to address the issues. Since I ran the ministry before, I am confident to streamline the problems."

Looking ahead, he expressed hope for actionable plans. "Hopefully, I will be able to create some packages of work to solve the problems," he said. On the National Review Committee's recommendation to cancel the Adani Group power purchase agreement, Iqbal Hasan remained measured: "I need to do homework. We need to do lots of brainstorming." The committee had highlighted serious anomalies and warned that the deal could be financially burdensome for Bangladesh.

Iqbal Hasan is scheduled to brief journalists at the secretariat soon, where he is expected to outline the current state of the sector and his approach to tackling persistent issues, including rising outstanding bills and an energy shortfall affecting economic growth.

Earlier, at a 3 February seminar, Iqbal Hasan highlighted the challenge of balancing production costs with affordable consumer prices. "Balancing production costs with affordable prices for consumers requires deep thought and a long time, which is not possible in a five-year tenure," he said.

He recalled a previous framework where 65% of power generation remained under government control, with the rest developed through public-private partnerships. "This policy allowed the state to maintain leverage over prices," he noted.

Criticising deviations from this approach, Iqbal Hasan said one-on-one deals bypassing public procurement rules had fueled corruption and rent-seeking. "For years, development was treated as an end in itself. Now ordinary people are paying the hidden costs through higher electricity bills and mounting public debt," he added.

Amir Khasru Mahmud Chowdhury, who is set to take charge as the finance and planning minister of the BNP-led new government, has set boosting investment and employment as his top priority, saying the government will focus on simplifying the business climate and lowering the cost of doing business to stimulate economic activity.

In a short interview with The Business Standard shortly after taking oath in the government led by Tarique Rahman, Khasru said effective measures would be taken to curb corruption and extortion, which he identified as barriers to growth.

He said deregulation would be introduced to ease bureaucratic complexity and reduce business costs.

High bank lending rates and elevated gas and electricity charges are discouraging private-sector investment and limiting job creation, he added.

"Lowering lending rates to a tolerable level, removing bureaucratic hurdles and improving ease of doing business will be central policy priorities," the minister said.

Amir Khasru described the broader economic landscape as challenging, citing Bangladesh's declining tax-to-GDP ratio, weaknesses in the banking and financial sectors, and a struggling capital market.

"Although inflation has eased slightly, it remains high, while private-sector credit growth has slowed sharply, investment and job creation remain weak, capital machinery imports have fallen, and poverty is rising.

"To overcome this situation, we will have to take major and difficult decisions," he said, adding that stricter reforms will be needed compared with previous administrations.

Reducing the cost of doing business to encourage investment and employment will be pursued at any cost, alongside efforts to raise the tax-to-GDP ratio through economic expansion, he said.

The minister added that as the finance minister, he will undertake a comprehensive review of the economy to determine its current condition, after which the government will outline a roadmap defining its economic direction.