BSRM Limited reported that its consolidated net profit dropped by 11% year-on-year to Tk78.70 crore in the October to December of FY26.

Meanwhile, in the first half of this fiscal year, its consolidated revenue rose by 18% to Tk4,756 crore and the consolidated net profit inched up to Tk202 crore, compared to the previous year during the same period.

At the end of the first half, its consolidated earnings per share stood at Tk6.79.

Bangladesh’s economic outlook for 2026 points to a potential growth of around 5 percent, with expectations of easing inflation, as per a recent government report. However, structural challenges remain, which will require strong governance and policy consistency.

The report by the General Economics Division (GED) of the Bangladesh Planning Commission -- titled Economic Update & Outlook January 2026 -- notes that macroeconomic stability is expected to improve.

Despite that, sustaining growth will require investment in skills and technology to diversify the economy beyond garments. This step is particularly significant as the country approaches graduation from the least developed country (LDC) category and navigates an ongoing democratic transition.

Recent data show signs of recovery. Provisional quarterly national accounts estimates released by the Bangladesh Bureau of Statistics indicate that economic activity strengthened in the first quarter of FY2025-26.

On a point-to-point basis, real growth rose to 4.50 percent, up from 2.58 percent in the same quarter a year earlier. Provisional estimates also suggest overall GDP growth at constant prices reached 3.72 percent in FY2024-25, with final figures to be benchmarked against annual GDP using internationally accepted methods.

The GED report underscores the importance of a stable and reformed political environment, alongside effective integration of technology, to shift the economy from low-cost labour dependence to higher-value activities.

The report cautions that risks persist from institutional weaknesses and elite uncertainty. With progress on the Sustainable Development Goals remaining slow, it recommends evidence-based policymaking and targeted village-level interventions to support inclusive and sustainable development.

India plans to slash tariffs on cars imported from the European Union to 40% from as high as 110%, sources said, in the biggest opening yet of the country's vast market as the two sides close in on a free trade pact that could come as early as 27 January.

Indian Prime Minister Narendra Modi's government has agreed to immediately reduce the tax on a limited number of cars from the 27-nation bloc with an import price of more than 15,000 euros ($17,739), two sources briefed on the talks told Reuters.

This will be further lowered to 10% over time, they added, easing access to the Indian market for European automakers such as Volkswagen, Mercedes-Benz and BMW.

The sources declined to be identified as the talks are confidential and could be subject to last-minute changes. India's commerce ministry and the European Commission declined to comment.

'Mother of all deals'

India and the EU are expected to announce 27 January the conclusion of protracted negotiations for the free trade pact, after which the two sides will finalise the details and ratify what is being called "the mother of all deals.

The pact could expand bilateral trade and lift Indian exports of goods such as textiles and jewellery, which have been hit by 50% US tariffs since late August.

India is the world's third-largest car market by sales after the US and China, but its domestic auto industry has been one of the most protected. New Delhi currently levies tariffs of 70% and 110% on imported cars, a level often criticised by executives, including Tesla chief Elon Musk.

New Delhi has proposed slashing import duties to 40% immediately for about 200,000 combustion-engine cars a year, one of the sources said, its most aggressive move yet to open up the sector.

This quota could be subject to last-minute changes, the source added.

Battery electric vehicles will be excluded from import duty reductions for the first five years to protect investments by domestic players like Mahindra & Mahindra and Tata Motors in the nascent sector, the two sources said.

After five years, EVs will follow similar duty cuts.

Market currently dominated by Suzuki and local makers

Lower import taxes will be a boost for European automakers such as Volkswagen, Renault and Stellantis, as well as luxury players Mercedes-Benz and BMW which locally manufacture cars in India but have struggled to grow beyond a point in part due to high tariffs.

Lower taxes will allow carmakers to sell imported vehicles for a cheaper price and test the market with a broader portfolio before committing to manufacturing more cars locally, said one of the two sources.

European carmakers currently hold a less than 4% share of India's 4.4-million units a year car market, which is dominated by Japan's Suzuki Motor as well as homegrown brands Mahindra and Tata that together hold two-thirds.

With the Indian market expected to grow to 6 million units a year by 2030, some companies are already lining up new investment.

Renault is making a comeback in India with a new strategy as it seeks growth outside Europe, where Chinese carmakers are making strong inroads, and Volkswagen Group is finalising its next leg of investment in India through its Skoda brand.

The European Union has suspended Generalised Scheme of Preferences (GSP) tariff benefits for a wide range of Indian exports from January 1, a move expected to significantly raise duties on shipments to the 27-nation bloc and weaken India’s price competitiveness in key sectors, according to a report by The Hindu.

The suspension applies to the 2026-2028 period and covers India, Indonesia and Kenya, the Official Journal of the European Union said, citing a regulation adopted by the European Commission on September 25, 2025.

The decision comes at a sensitive time, as India and the EU are expected to announce the conclusion of negotiations for a free trade agreement (FTA) on January 27.

According to trade think tank Global Trade Research Initiative (GTRI), about 87 percent of India’s exports to the EU will now face higher most-favoured-nation (MFN) tariffs following the withdrawal of GSP concessions. Only around 13 percent of exports, mainly agriculture and leather products, will continue to enjoy preferential access.

Under the GSP, Indian exporters were able to ship goods to the EU at duties below MFN rates. For example, an apparel item attracting a 12 percent tariff paid only 9.6 percent under the scheme. From January 1, exporters must pay the full duty.

The EU has removed GSP benefits across almost all major industrial sectors, including textiles and garments, plastics and rubber, chemicals, iron and steel, machinery, electrical goods and transport equipment, which together form the backbone of India’s exports to Europe. While the EU has periodically reduced preferences in the past, this marks a complete withdrawal for three years.

GTRI Founder Ajay Srivastava said Indian exporters will face higher trade barriers in the near term, compounded by rising compliance costs and the rollout of the EU’s Carbon Border Adjustment Mechanism. He warned that in price-sensitive sectors such as garments, the loss of GSP could divert EU buyers toward duty-free suppliers like Bangladesh and Vietnam.

India’s goods trade with the EU stood at $136.53 billion in 2024-25, with the bloc accounting for about 17 percent of India’s total exports.

After repatriating a record amount of profit as dividends to its owners last year, Marico Bangladesh – a subsidiary of India-based multinational personal care major Marico Limited – is now set to remit Tk448 crore to India for the first nine months of the current financial year 2025-26.

In FY25, Marico repatriated over Tk1,000 crore to its owners in India as dividends. The dividend figure was an all-time high, according to company data.

Its financial statements show that in the first nine months, Marico's dividend payout ratio stood at 99.62%, meaning the company retained less than 1% of its profit and paid out almost its entire earnings as dividends.

During April to December – covering the first nine months of the financial year, as it runs from April to March – Marico Bangladesh posted a profit of Tk497.97 crore with earnings per share (EPS) of Tk158.09.

During the first nine months of the current financial year, it declared a 1,575% interim cash dividend based on its audited quarterly profit, with the latest 475% interim cash dividend of Tk47.5 for each share for the third quarter during the October to December quarter.

As the majority shareholders in the Bangladesh subsidiary, Marico Limited will receive the majority of this payout.

Already, Marico Bangladesh had disbursed the previous two quarters (April to September) interim cash dividend to its shareholders, including both local and Indian owners.

In the previous year, Marico Bangladesh paid the record 3,840% cash dividend or Tk384 against each share, including 1950% cash dividend and 1890% interim dividend in the previous three quarters.

The dividend payout was 204.8%, which is significantly higher compared with the last five financial years.

The lowest dividend payout was 13.7% in FY24, meaning it retained its majority profit earned as there were foreign currency shortage and foreign investors were facing hurdles to repatriate dividends.

Of the total Tk1209.60 crore dividend for FY25, Marico repatriated Tk1088.10 crore – or equivalent to 90% to India to owners of the company as the owners held 90% stake of the company, and the rest 10% availed by the local investors – including institutional and general shareholders.

Strong revenue, profit growth

According to its audited financial statement ending in December, Marico's year-on-year revenue grew by 24% to Tk1,545.16 crore, while its net profit after tax grew by 8.54% to Tk497.97 crore with an EPS of Tk158.09.

At the same time as the previous financial year, its revenue was Tk1,245 crore and net profit Tk458.79 crore.

It said through a disclosure on stock exchanges on Sunday, EPS has increased in the third quarter of FY26 as compared to Q3 of FY25 due to increased revenue and optimisation of operating expenses.

Its net operating cash flow per share stood at Tk109.79 in the Q3 (Oct-Dec) against Tk88.35 in the same time of the previous year due to higher collection from customers.

Its net asset value per share by the end of December declined to Tk92.22, which was Tk239.13 as of March 2025 due to the declaration of final dividend for FY25, and interim dividends for FY26, said Marico Bangladesh.

On Sunday, its share price closed at Tk2,770.40 each on the Dhaka Stock Exchange, a 0.23% higher from the previous trading session.

Two listed companies of BSRM Group, the country's largest steel manufacturer, posted a combined 33% growth in revenue to Tk10,732 crore during the July-December period of the 2025-26 fiscal year, driven mainly by higher sales price amid volatile market conditions.

The growth in revenue, however, was not matched by a similar rise in profitability as elevated business costs continued to weigh on earnings.

According to their half-yearly financial statements, both BSRM Limited and BSRM Steels Limited recorded higher topline performance in the first half of the fiscal year, but net profit growth remained modest due to rising raw material prices, higher financing costs and overall inflationary pressures.

BSRM Limited, which is primarily engaged in the production of mild steel products through its melting, rolling and re-rolling mills, reported an 18% year-on-year increase in consolidated revenue to Tk4,756 crore in the first half of FY26.

During the same period, the company's consolidated net profit edged up to Tk200 crore, while earnings per share stood at Tk6.79.

Despite the improvement over the six months, the company's second-quarter results reflected pressure on profitability. In the October-December quarter, consolidated revenue rose 14% to Tk2,411 crore, but consolidated net profit declined by 11% year-on-year to Tk78.70 crore, with earnings per share falling to Tk2.64.

The company said the weaker quarterly profit was mainly due to higher operating and input costs.

On the stock market, shares of BSRM Limited closed 1.67% lower at Tk81.80, while its market capitalisation fell by Tk53.74 crore to Tk2,442 crore.

BSRM Limited has an annual production capacity of 1.75 lakh tonnes of MS rod and 11.25 lakh tonnes of billet, making it a major supplier to the country's construction and infrastructure sectors.

According to the company, it continued to operate in a challenging environment marked by domestic economic pressures and global uncertainty.

Meanwhile, BSRM Steels Limited posted a stronger revenue growth compared to its sister concern. It reported a 47% jump in revenue to Tk5,976 crore in the first half of FY26, while net profit rose by 10% to Tk193 crore. Earnings per share for the period stood at Tk5.14.

In the second quarter alone, the company recorded a 31% increase in revenue to Tk3,338 crore, supported by higher sales volume and price adjustments. Net profit during the quarter increased by 6% to Tk95.50 crore, with earnings per share reaching Tk2.54.

Despite the improved financial performance, the company's share price also declined, closing 2% lower at Tk68.60. Its market capitalisation dropped by Tk52.66 crore to Tk2,579 crore.

BSRM Steels manufactures MS billets, which are the basic raw material for rods, using scrap and sponge iron, and subsequently produces MS products through re-rolling mills. The company has an annual production capacity of 12.50 lakh tonnes of billets, 5 lakh tonnes of MS products and 1 lakh tonnes of wire rods.

The Bangladesh steel industry, estimated to be worth around Tk75,000 crore, plays a crucial role in national infrastructure development and industrial employment.

As the market leader, BSRM has continued to supply steel to major national projects, including bridges, railways and power infrastructure, according to the company's annual report for FY25.

However, the operating environment remained highly volatile during the period. At home, political uncertainty and macroeconomic challenges such as foreign exchange volatility, tight liquidity conditions due to higher interest rates and persistent inflation put pressure on operating costs and consumer demand.

Internationally, ongoing geopolitical conflicts disrupted global supply chains and added to uncertainty in commodity markets.

BSRM also reported a decline in sales volume of MS rods during the first half of the fiscal year, mainly due to weaker domestic consumption and slower implementation of large infrastructure and private development projects.

These factors limited the group's ability to turn higher revenue into stronger profit growth.

Despite the headwinds, BSRM said it continued to focus on operational discipline, cost optimisation and quality assurance to maintain consistent product standards and plant reliability.

The group also pursued strategic initiatives to improve process efficiency and strengthen supply chain resilience in order to mitigate rising input costs and market volatility.

Garment manufacturers and investors in export processing zones (EPZs) have warned that a three-day general holiday around the upcoming national election could disrupt production and hurt exports.

The government has already declared February 10 to 12 as general holidays in industrial areas in connection with the national parliamentary election and referendum scheduled for February 12.

In response, the Bangladesh EPZ Investors Association has written to the Bangladesh Export Processing Zones Authority (Bepza), urging it to reconsider the plan. Bepza has said it is reviewing the matter in consultation with relevant stakeholders.

Khorshed Alam, executive director (Enterprise Service) of BEPZA, told The Daily Star that the authority received the EPZ investors’ letter yesterday and has already started discussions.

“We received the letter on Sunday. We will discuss the matter with all concerned parties, including relevant ministries, stakeholder associations, and factories inside and outside EPZs,” he said. “We will try to ensure that holidays in all industrial areas are observed at the same time during the election period.”

He added that BEPZA cannot take a decision on its own and that discussions are ongoing, with a final decision to be made at an executive board meeting.

In the letter, EPZ investors said enterprises in the zones follow production and shipment schedules agreed upon with international buyers months in advance, leaving little room for sudden changes.

Unplanned holidays, the association warned, would disrupt production, delay shipments and could result in penalties, order cancellations and loss of buyer confidence.

Garment factory owners outside EPZs raised similar concerns in a separate letter sent on Saturday to the secretary of the Ministry of Labour and Employment.

They said February already has fewer working days because of Shab-e-Barat, International Mother Language Day and weekly holidays. With the three additional holidays now declared for the election, the number of effective working days would fall to 19, which could seriously disrupt export-oriented garment production.

The letter also said global demand for garments has remained weak in recent months, with both orders and prices declining, forcing some factories to shut down. In this situation, factory owners are struggling to manage February wage payments and upcoming Eid-ul-Fitr bonuses.

Both garment manufacturers and EPZ investors have urged the government to consider declaring only election day as a mandatory general holiday in industrial areas. As an alternative, they suggested adjusting the holidays on February 10 and 11 against weekly or annual leave through an executive order.

The National Board of Revenue (NBR) is moving to fully automate value-added tax (VAT) and income tax refunds to make the process faster, more transparent, and less burdensome for taxpayers, NBR Chairman Md Abdur Rahman Khan said yesterday.

“Automated VAT refunds have already been introduced, and income tax refunds will follow the same path,” Khan said at a press briefing at NBR headquarters in Agargaon, held for International Customs Day.

He acknowledged that minor glitches might occur initially, saying such issues are inevitable when launching a new system. Similar problems were faced and resolved when e-return filing was introduced.

Refund disbursement has already started, which Khan called a “major development.” He added that automation will gradually extend to income tax refunds as well.

The main goal is to reduce direct interaction between taxpayers and officials. “The greater the distance, the greater the transparency,” Khan said.

According to him, the system would significantly reduce complaints, allow real-time tracking and ensure refunds are issued within a much shorter timeframe. If necessary, the law will be amended in the future to further strengthen the system.

Khan also said the government is working to rationalise overall tariff structure ahead of the country’s graduation from least developed country (LDC) status.

“A report on tariff transformation has been submitted to the chief adviser, including recommendations for reducing duties,” he said, adding that Bangladesh cannot maintain high tariffs after LDC graduation.

However, he said duties had been increased in some areas to protect domestic industries, while rejecting claims of frequent duty hikes.

“In the past one and a half years, we have not increased tariffs to raise revenue. Instead, in the public interest, we reduced duties on imports of rice, onions, potatoes, and soybeans,” he added.

Addressing concerns about rising fruit and import-dependent goods prices, Khan said the main reason is the sharp depreciation of the taka against the US dollar, not taxes or customs duties.

“The dollar has risen about 40 percent -- from Tk 80 to Tk 85 two years ago to around Tk 126 to Tk 127 now -- raising import costs significantly,” he said.

He added that no new duties were imposed on fruit imports during this period. “In fact, income tax on fruit imports was cut from 10 percent to 5 percent, and duties on date imports were reduced significantly,” he said.

On the planned restructuring of the NBR into two separate divisions, Khan said the matter will be finalised after a secretaries’ committee meeting.

“Once the division of responsibilities is decided, a gazette will be issued, and organograms and designations will be adjusted accordingly,” he added.

The NBR chairman also hinted at a possible extension of the January 31 deadline for individual income tax returns. “We will consider it if some registered taxpayers miss the deadline,” he said, adding that no final decision has been made.

Garment buying house entrepreneurs have warned that the commerce ministry's proposal to withdraw bonded warehouse facilities on the import of yarn of 10 to 30 counts could harm the country's readymade garment (RMG) sector and unsettle international buyers.

They described the proposal as "self-destructive" and urged the government to offer alternative support to domestic textile millers instead of withdrawing bonded facilities.

The concerns were raised at a press conference titled "The Country's Readymade Garment Industry in Crisis: A Struggle for Survival", organised by the Bangladesh Garment Buying House Association (BGBA) at its office in the capital today (25 January).

BGBA President Mohammad Mofazzal Hosen Pabel said the proposed decision had pushed the RMG sector "to the brink of death" and had triggered serious concerns among global buyers.

For several months, the country's textile millers and garment manufacturers have been at odds over duties and restrictions on yarn imports from India and other countries.

On 12 January, the commerce ministry requested the National Board of Revenue to withdraw bonded warehouse facilities for importing 10-30 count yarn, citing the need to protect domestic spinning mills.

The request followed appeals from the Bangladesh Textile Mills Association (BTMA) and recommendations from the Bangladesh Trade and Tariff Commission.

However, RMG sector leaders alleged that the commerce ministry's move was one-sided. Several textile and garment sector associations have held press conferences and sent letters to the government strongly opposing the move.

"Several buyers have expressed concern over the ongoing discord between the country's RMG and textile sectors," Pabel said, adding that many had already begun shifting their 2026 orders to competing countries.

He said global buyers and large retailers were increasingly worried about the overall business environment in Bangladesh, including political instability and security concerns.

"Buyers have expressed worries over safety, factory closures and reports of frequent mob violence," the BGBA president said, adding that disputes over yarn imports would further damage confidence.

Pabel also alleged that competitor countries were portraying Bangladesh negatively in global markets and that some buyers had imposed travel restrictions on visits to the country.

Responding to a question, he said any disruption to the RMG sector would ultimately affect buying houses, which act as a bridge between international buyers and local manufacturers.

Opposing the withdrawal of bonded facilities, he urged the government to provide incentives and policy support to make the textile industry more competitive.

"The government should make the spinning sector self-reliant so that RMG manufacturers can buy yarn from domestic sources at prices even 30 cents lower," he added.

He also said the association expected the next elected government to consult all relevant trade bodies on policy decisions affecting the textile and garment sectors, rather than holding discussions with a limited number of organisations.

Joint consultations would help identify core challenges and future prospects and lead to sustainable solutions, he said.

"As spinners are demanding the withdrawal of bonded facilities, it shows they are facing problems, while cutting bonded facilities would affect RMG manufacturers. Only joint dialogue can lead to solutions," he added.

Pabel said every policy decision carried both positive and negative consequences, but argued that the proposed move was taken through an unfair process involving only a few parties.

He warned that while some groups might benefit initially, the decision could prove harmful in the long run, particularly if export orders decline and begin to affect the textile sector as well.

Bangladesh's e-commerce sector has moved far beyond its early days of scepticism, emerging as a fast-evolving part of the country's digital economy.

At the center of this transformation is Daraz Bangladesh, the country's largest online marketplace.

Ben Yi, chief commercial officer of Daraz Group and managing director of Daraz Bangladesh, has overseen a year of steady operational upgrades, trust-building initiatives, and ecosystem development.

In an interview with Abbas Uddin Noyon of The Business Standard, he reflects on Daraz's journey, the lessons learned, and why he believes Bangladesh is approaching a new phase of e-commerce maturity.

Bangladesh's e-commerce journey has moved from low trust to much wider adoption. What were the most important shifts behind this transition?

Several factors came together. Smartphone penetration and digital wallets expanded rapidly, logistics became more convenient, and marketplaces grew as more sellers joined. This is a natural evolution seen in many countries. Bangladesh is still in an early stage e-commerce accounts for only about 2-3% of total retail but the potential is significant.

We can easily reach double-digit penetration in the coming years. At Daraz, we focused on shortening delivery times, introducing single-warehouse fulfillment, and improving reliability, which made online shopping faster and more convenient for consumers.

Looking back at 2025, what were the defining moments for Daraz Bangladesh?

There wasn't a single defining moment. Instead, 2025 was shaped by consistent progress through many small, detailed improvements month after month. These efforts reduced logistics lead times, lowered costs, and strengthened our commercial strategies, including building our Everyday Low Price (EDLP) channel and enhancing Flash Sales. We applied Alibaba's global experience through technology and product innovation, while adapting it to Bangladesh's market reality. This steady approach delivered strong results throughout the year.

Customer trust remains a major challenge. Why did Daraz decide to extend its return policy to 14 days across the entire platform?

Trust is fundamental to e-commerce growth. In Bangladesh, past market incidents made many consumers cautious about shopping online. Extending the return window to 14 days across the entire platform was a deliberate decision to address this directly. We want customers to feel protected and confident that Daraz will support them through refunds, replacements, or resolution if something goes wrong. This reinforces our long-term commitment to making online shopping safer and more reliable.

DarazMall has become central to your authenticity strategy. How does it work, and what impact has it had?

DarazMall is our crown jewel, inspired by Alibaba's Tmall. While we maintain strong quality controls across the entire platform, DarazMall verifies that sellers are reliable brand owners committed to long-term service and authenticity. We strengthened governance, added more brands, and introduced flagship stores with clear Mall tags for quicker purchase decisions. Our Authenticity Guarantee ensures replacement and three times cash back if a product is proven fake. This has significantly boosted customer confidence and brand performance in 2025.

How are you supporting sellers, particularly SMEs, to succeed in digital commerce?

From the beginning, we focused on building a strong seller ecosystem. Tools like backend systems, Daraz University, and incentives such as free delivery and virtual bundles help simplify selling. This allows SMEs to focus on sourcing quality products and managing supply chains.

Going forward, we are integrating AI tools to optimise listings, improve content relevance, and streamline buyer interactions. Drawing on Alibaba's experience, we want to empower more sellers to build sustainable businesses on Daraz.

Daraz Express has grown into a major logistics operation. What is its current scale?

When we entered Bangladesh, reliable logistics were limited, so we built Daraz Express to ensure customer satisfaction. Today, it handles over 70% of our parcels, and we are expanding it as a service for external brands and partners. Our fully digitalised system offers real-time tracking, and we have reduced end-to-end delivery to around two days. We are also launching same-day delivery in Dhaka soon, supporting demand across all 64 districts.

What have campaign events revealed about Bangladeshi consumer behaviour?

Mega campaigns like 11.11 have been hugely successful, and we now work with brands to offer compelling deals on a monthly basis. Consumers value strong discounts on big-ticket items during campaigns, while also returning for daily essentials. Operationally, we scaled warehouses and logistics to handle volume surges. During the last 11.11, deliveries were nearly as fast as regular orders, which shows how far our capabilities have come.

Why has Daraz invested heavily in talent development and inclusion?

Our success depends on our people. By attracting top talent and investing in their growth, we are building future e-commerce leaders for Bangladesh. The Daraz Future Leaders Programme helps young graduates gain fast, cross-functional exposure, while the dWomen initiative promotes female leadership and diversity. Inclusive teams bring better ideas and stronger insights into consumer behaviour, which ultimately benefits the business.

What are the biggest regulatory challenges facing the sector?

E-commerce in Bangladesh is still at an early stage, with significant long-term potential. Clear, stable, and practical policies are essential to support growth. As the country's largest e-commerce platform, Daraz works closely with policymakers to share industry insights and highlight operational challenges and opportunities, including areas like cross-border commerce and SME support.

What excites you most about Bangladesh's e-commerce future?

I'm excited by Bangladesh's prospects for stable economic growth, increased foreign investment, and rising consumer incomes. Daraz aims to accelerate e-commerce penetration by improving speed, service quality, and assortment depth, while helping professionalise the industry. Our long-term vision is a trusted, mature e-commerce ecosystem that delivers the best shopping experience for consumers and sellers and contributes meaningfully to the broader economy.

The government has increased monthly allowances and expanded beneficiary coverage for 15 social safety net programmes (SSNPs) for the upcoming fiscal year 2026-27 (FY27), which begins in July.

The Finance Division announced the decisions in a press statement yesterday following the 32nd meeting of the Advisory Council Committee on SSNPs, chaired by the finance adviser.

However, the move has drawn criticism from policy experts, who questioned the timing as the interim government has less than a month remaining in office. They also noted that implementation will fall to the next elected government, which is likely to follow its own manifesto commitments.

WHO GETS HOW MUCH

Under the Ministry of Social Welfare’s old age allowance programme, the number of beneficiaries has been increased by 1 lakh to 62 lakh. Of them, 59.95 lakh elderly citizens will receive Tk 700 per month, up from Tk 650, while 2.05 lakh people aged over 90 will receive Tk 1,000.

Allowances for “widows and husband-deserted women” have also been raised. Of the 29 lakh beneficiaries, 28.75 lakh will receive Tk 700 per month, while 25,000 women aged over 90 will receive Tk 1,000.

For persons with disabilities, the total number of beneficiaries under the disability allowance and education stipend programme has been increased to 36 lakh from 34.5 lakh. Most will receive Tk 900 per month from FY27, while 18,100 beneficiaries will receive Tk 1,000.

Education stipends for students with disabilities have been increased by Tk 50 at all levels. The revised rates are Tk 950 for primary, Tk 1,000 for secondary and Tk 1,350 for higher education.

Under the programme for “improving living standards of backward communities”, the number of beneficiaries has increased by 7,000 to over 2.28 lakh, while the monthly allowance has been raised from Tk 650 to Tk 700.

The number of student beneficiaries from backward communities has also been increased by 3,198 to 45,338. For FY27, monthly stipends have been set at Tk 700 for primary, Tk 800 for secondary, Tk 1,000 for higher secondary and Tk 1,200 for higher education levels.

In addition, 5,490 beneficiaries will receive skills development training under the programme.

Beneficiaries under the financial assistance programme for patients suffering from serious illnesses, including cancer, kidney disease, liver cirrhosis, stroke, related paralysis, congenital heart disease and thalassemia, have increased by 5,000 to 65,000. The one-time medical assistance has been doubled from Tk 50,000 to Tk 100,000.

The “mother and child benefit” programme under the Ministry of Women and Children Affairs will cover more than 18.95 lakh mothers, an increase of 1.24 lakh, with a monthly allowance of Tk 850.

The “food-friendly programme” of the Ministry of Food will support 60 lakh families starting FY27, up 5 lakh, providing 30 kg of subsidised rice for six months at Tk 15 per kg.

The Advisory Council committee meeting also raised the monthly allowances for Gallantry Awards-winning freedom fighters and families of martyred freedom fighters by Tk 5,000.

At the meeting, it was recommended that the monthly honorarium allowances for the families of martyrs and the injured from the July Mass Uprising, which fall under the Ministry of Liberation War Affairs, and the Vulnerable Group Feeding (VGF) programme under the Ministry of Fisheries and Livestock, be brought within the purview of the committee on SSNPs.

The meeting further recommended that in FY27, an additional 273,514 fishermen be newly included, bringing the total number of fishermen under the VGF programme to 15 lakh.

Officials said these revisions aim to enhance social protection and address the needs of vulnerable populations ahead of the next fiscal year.

However, policy experts say otherwise.

Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development (InM), said the interim government has less than one month. A new government will come, and they will implement their own programmes in line with their manifestos.

“At this stage, there is no justification for taking any such decision,” he said.

The interim government could hike allowances and the number of beneficiaries in this fiscal year to give a better cushion to low-income people struggling amid persistent inflation, he added.

Selim Raihan, executive director at the South Asian Network on Economic Modeling (Sanem), said the interim administration could have increased the social safety nets allocation at the beginning of this fiscal year when it had time, and the pressure of inflation was high.

US President Donald Trump on Saturday warned Canada that if it concludes a trade deal with China, he will impose a 100 percent tariff on all goods coming over the border.

Relations between the United States and its northern neighbor have been rocky since Trump returned to the White House a year ago, with spats over trade and Canadian Prime Minister Mark Carney decrying a “rupture” in the US-led global order.

During a visit to Beijing last week, Carney hailed a “new strategic partnership” with China that resulted in a “preliminary but landmark trade agreement” to reduce tariffs -- but Trump warned of serious consequences should that deal be realized.

If Carney “thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken,” Trump wrote on his Truth Social platform.

“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” he said.

“If Canada makes a deal with China, it will immediately be hit with a 100 percent Tariff against all Canadian goods and products coming into the USA.”

Trump insulted Carney by calling him “Governor” -- a swipe referring to the US president’s repeated insistence that Canada should be the 51st US state.

Trump this week posted an image on social media of a map with Canada -- as well as Greenland and Venezuela -- covered by the American flag.

Canada’s minister responsible for trade with the United States, Dominic LeBlanc, pushed back against Trump’s latest threat. “There is no pursuit of a free trade deal with China. What was achieved was resolution on several important tariff issues,” he wrote on X.

The two leaders have sharpened their rhetorical knives in recent days, beginning with Carney’s speech on Tuesday at the World Economic Forum in Davos, where he earned a standing ovation for his frank assessment of a “rupture” in the US-led global order.

His comment was widely viewed as a reference to Trump’s disruptive influence on international affairs, although Carney did not mention the US leader by name.

Trump fired back at Carney a day later in his own speech, and then withdrew an invitation for the Canadian prime minister to join his “Board of Peace” -- his self-styled body for resolving global conflict.

Initially designed to oversee the situation in postwar Gaza, the body appears now to have a far wider scope, sparking concerns that Trump wants to create a rival to the United Nations.

“Canada lives because of the United States. Remember that, Mark, the next time you make your statements,” Trump said.

Carney shot back on Thursday: “Canada doesn’t live because of the United States. Canada thrives because we are Canadian.” He nevertheless acknowledged the “remarkable partnership” between the two nations.

Canada heavily relies on trade with the United States, the destination for more than three quarters of Canadian exports.

Key Canadian sectors like auto, aluminum and steel have been hit hard by Trump’s global sectoral tariffs, but the levies’ impacts have been muted by the president’s broad adherence to an existing North American free trade agreement.

Negotiations on revising that deal are set for early this year, and Trump has repeatedly insisted the United States doesn’t need access to any Canadian products -- which would have sweeping consequences for its northern neighbor.

Matthew Holmes, executive vice president of the Canadian Chamber of Commerce, said in a statement that he hoped the two governments would “come to a better understanding quickly that can alleviate further concerns for businesses.”

The two nations, along with Mexico, are set to host the World Cup later this year.

Two listed textile companies under New Asia Group reported contrasting financial performances in the first half of FY26, highlighting the uneven impact of domestic and global challenges on Bangladesh's textile and apparel sector.

Malek Spinning Mills posts profit decline

Malek Spinning Mills PLC saw its earnings weaken during July–December FY26, weighed down by rising costs and macroeconomic pressures. The company's consolidated net profit fell 19% year-on-year to Tk68.57 crore, while consolidated earnings per share (EPS) stood at Tk3.54.

The pressure intensified in the October–December quarter, when net profit dropped 37% to Tk31.85 crore and EPS fell to Tk1.65. Company officials attributed the weaker performance to external and internal headwinds, including the continuation of an additional 20% US trade tariff, banking sector instability, a widening financial account deficit, currency volatility, and declining foreign exchange reserves.

Rising commodity prices and persistent inflation further eroded margins. The textile and readymade garment sectors are also grappling with stricter compliance requirements, higher labour costs, and disruptions in power and gas supply all of which have directly increased production costs and affected export revenues.

Rahim Textile delivers strong turnaround

In contrast, Rahim Textile Mills PLC reported a robust performance over the same period. Net profit surged 271% year-on-year to Tk1.71 crore for July–December FY26, with EPS rising to Tk1.81. The October–December quarter also remained positive, with net profit climbing 92% to Tk0.50 crore and EPS at Tk0.54.

Rahim Textile noted that while the global economy remains under strain and the Bangladeshi textile industry faces challenges such as soaring energy prices, higher transportation costs, and reduced government incentives, its turnaround was driven by strategic shifts in operations.

The company invested Tk35 crore to transition from woven grey fabric dyeing, printing and washing to knit garments, seamless dyeing, washing, and accessories production. This move helped increase profit margins by lowering the cost of goods sold and aligning production with market demand.

As part of the strategy, Rahim Textile also shut down technologically obsolete woven dyeing, printing, and finishing units due to high energy costs, lower demand, falling selling prices, and rising raw material expenses.

US President Donald Trump filed a $5 billion lawsuit against JPMorgan Chase and its CEO Jamie Dimon on Thursday, accusing them of debanking him by closing several of his accounts to further a political agenda.

The lawsuit, filed in a Florida state court in Miami-Dade County, accused the largest US bank of violating its own policies by singling out Trump to ride the “political tide.”

JPMorgan denied that it closes accounts for political or religious reasons.

“While we regret President Trump has sued us, we believe the suit has no merit,” it said. “We respect the President’s right to sue us and our right to defend ourselves.”

Later on Thursday, Trump told reporters aboard Air Force One he had not spoken with Dimon about the lawsuit. “You’re not allowed to do what they did,” he said. “So wrong. I don’t know what their excuse would be. Maybe their excuse would be the regulators.”

Trump has also attacked other lenders including Bank of America with allegations of debanking, and recently stirred up industry opposition by demanding a 10 percent cap on credit card interest rates.

Dimon, who has run JPMorgan for two decades and is one of the most influential figures in corporate America, told the World Economic Forum on Wednesday that capping card rates would curb access to credit for many consumers and amount to an “economic disaster.”

At the same time, industry executives have cheered the administration’s push for deregulation, which they say could cut red tape, boost profits and spur economic growth.

Trump accused JPMorgan of violating its principles unilaterally by shutting accounts belonging to him and his hospitality companies.

He also accused Dimon of ordering a malicious “blacklist” to warn other banks about doing business with the Trump Organization and Trump family members, as well as with Trump himself.

“Plaintiffs also suffered extensive reputational harm by being forced to reach out to other financial institutions in an effort to move their funds and accounts, making it clear that they had been debanked,” Trump added.

JPMorgan said it closes accounts that create legal or regulatory risk for the company. “We regret having to do so but often rules and regulatory expectations lead us to do so,” it said. World leaders in government, business, sports, and entertainment attend the America Business Forum in Miami

Shares of JPMorgan closed up 0.5 percent on Thursday and were flat premarket on Friday.

Capital One Financial, another large bank, has sought to dismiss a similar lawsuit filed last March by several Trump plaintiffs, including the president’s son Eric Trump. That lawsuit is still pending.

The White House referred a request for comment to Trump’s private lawyer, who had no immediate comment.

Banks have faced growing political pressure in recent years, particularly from conservatives who say lenders have for political reasons discriminated against industries such as firearms and fossil fuels.

That pressure has intensified during Trump’s second White House term, with the Republican accusing some banks of refusing to serve him and other conservatives. Banks have denied that allegation.

In December, the Office of the Comptroller of the Currency, a leading bank regulator, said in a report that the nine largest US banks have restricted financial services to certain industries as part of a debanking push.

The regulator did not provide specific examples of wrongdoing but said it had found large banks either refused services to some industries or required higher levels of scrutiny from 2020 to 2023.

Those affected included oil and gas companies, cryptocurrency firms, tobacco and e-cigarette manufacturers, and firearm companies, it said. The regulator found that many banks publicly disclosed restrictive policies, often tied to environmental, social and governance goals.

Many banks have since curtailed such practices and the regulator said it is continuing to review thousands of debanking complaints.

Last year, JPMorgan said it was cooperating with inquiries from government agencies and other entities regarding its policies in light of the Trump administration’s push against alleged debanking.

US regulators have also examined whether their own supervisory policies discouraged banks from serving certain corporate customers.

Last year, federal bank regulators said they would stop policing banks based on so-called reputational risk, under which supervisors could penalize institutions for activities that were not explicitly illegal but could expose them to negative publicity or costly litigation.

Some banks viewed the reputational risk standard as vague and subjective, giving supervisors wide discretion.

The industry has also urged regulators to update anti-money laundering rules, which can force banks to close suspicious accounts without explanation.

The inaugural ceremony of Sammilito Islami Bank, scheduled for 10am tomorrow (25 January) at Hotel Intercontinental Dhaka, has been postponed.

Arief Hossain Khan, spokesperson for Bangladesh Bank, confirmed the matter to the media.

Salehuddin Ahmed was scheduled to attend as chief guest, while special guests were to include Finance Secretary Md Khairuzzaman Mozumder, and Governor of Bangladesh Bank Ahsan H Mansur. The programme was to be presided over by Sammilito Islami Bank Chairman Mohammad Ayub Miah.

Other attendees were expected to include senior officials from Bangladesh Bank, the Finance Ministry, and the country's top financial institutions.

Sammilito Islami Bank PLC was formed through the merger of First Security Islami Bank, Global Islami Bank, Social Islami Bank, Exim Bank, and Union Bank.

The new bank boasts one of the largest capital structures in Bangladesh's banking history, with an authorised capital of Tk40,000 crore and a paid-up capital of Tk35,000 crore – Tk20,000 crore contributed by the government and Tk15,000 crore through conversion of depositors' shares.

The outstanding balance of government debt through the issuance of different securities, mainly treasury bills and bonds, increased further in fiscal year 2024–25, as authorities borrowed more to cover budget deficits amid sluggish revenue collection.

At the end of FY25, the total outstanding balance of government securities rose 28 percent year-on-year to Tk 744,850 crore.

Of the amount, outstanding debt from treasury bonds was Tk 518,995 crore, which increased 27 percent year-on-year.

At the same time, outstanding debt through treasury bills grew 31 percent to Tk 175,131 crore, according to a Bangladesh Bank report on government securities published on Thursday.

Including other securities, such as Shariah-based sukuk bonds, the total outstanding amount of government debt rose to Tk 768,850 crore—12.92 percent of Bangladesh’s gross domestic product (GDP)—at the end of June 2025.

The Bangladesh Bank (BB) said the increase in debt from the banking sector was significant, driven by policy measures to reduce non-tradable securities such as savings certificates, as well as higher financing needs related to budget implementation.

The BB said the banking sector was the leading investor, accounting for 68.87 percent of total outstanding securities, followed by 12.03 percent held by long-term investors such as insurance companies, trust funds, and provident funds.

Individual investors held 1.14 percent of the total outstanding amount.

The BB said that in FY25, the average yields of treasury bills and treasury bonds increased during the first half, followed by a marginal moderation during the second half of the fiscal year.

The report said the net issuance of treasury bonds and bills by the government surged in FY25.

During FY25, the net issuance of treasury bonds was Tk 110,762 crore, which was 165.30 percent higher than that of the previous fiscal year. The net issuance of treasury bills grew more than four times during the period.

Mutual Trust Bank PLC has announced plans to raise Tk346 crore in Tier-1 capital to strengthen its core capital base and support future growth.

The decision was taken at a meeting of the bank's board of directors and is subject to approval from the relevant regulatory authorities, according to a disclosure filed with the Dhaka Stock Exchange on Thursday (22 January).

The proposed capital raising represents about 32% of the bank's existing paid-up capital, which currently stands at Tk1,081 crore.

As of the end of 2024, Mutual Trust Bank's consolidated Tier-1 capital amounted to Tk2,467.53 crore, while its capital to risk-weighted assets ratio (CRAR) stood at 13.62%, comfortably above the regulatory requirement of 12.50%.

Speaking to The Business Standard, the bank's Managing Director, Syed Mahbubur Rahman, said the board's decision was driven by the need to further strengthen the bank's risk-based capital position amid a changing economic and regulatory environment.

He noted that the capital may be raised through a rights offer, issuance of preference shares, bonds, or another instrument in line with Bangladesh Securities and Exchange Commission regulations.

Tier-1 capital, often referred to as core capital, is considered the highest quality capital for banks as it primarily consists of common equity, retained earnings and disclosed reserves. It serves as a key buffer to absorb losses and is a critical indicator of a bank's financial strength under the Basel regulatory framework.

According to the bank's unaudited financial statements, the bank posted a net profit of Tk203.84 crore during the January–September period of 2025, nearly unchanged from Tk203.74 crore in the same period a year earlier. Its earnings per share also remained steady at Tk1.88.

For the full year of 2024, the private sector lender reported a net profit of Tk316.65 crore with an EPS of Tk3.22, and distributed a 10% stock dividend to its shareholders.

Despite posting double-digit revenue growth, listed telecommunications company ADN Telecom saw its net profit fall sharply in the first half of the current fiscal year, weighed down by rising costs and narrowing margins.

According to the company's quarterly financial statements, ADN Telecom's consolidated revenue rose 12.73% year-on-year to Tk100.74 crore during the July–December period. However, its net profit declined 21% year-on-year to Tk8.10 crore over the same period.

The company attributed the profit drop mainly to higher costs. Quarterly reports show that the cost of services and goods sold increased by around 4%, while the gross profit margin declined despite revenue growth. The cost of sales accounted for 63.62% of total revenue in the first half of the fiscal year, up from 59.67% in the corresponding period of the previous year.

In addition, administrative and distribution expenses rose significantly compared to the same period last year, further pressuring profitability.

As a result, earnings per share (EPS) fell to Tk1.26 for the July–December period, down from Tk1.58 a year earlier.

Commenting on its performance, ADN Telecom said it maintained positive growth momentum, achieving nearly 13% year-on-year revenue growth during the period. The company said the increase was driven primarily by effective sales execution, particularly revenue from several projects.

However, the company acknowledged that multiple cost and margin pressures affected earnings. These included inflationary impacts across various expense categories, higher employee-related costs, changes in depreciation rates, and price erosion in certain services, all of which had an adverse impact on EPS.

Despite the challenges, ADN Telecom said it remains focused on improving operational efficiency, diversifying its business portfolio, and accelerating growth across multiple revenue streams to ensure sustainable long-term profitability.

The government is set to significantly reduce the holding tax on factories located in the Bangladesh Small and Cottage Industries Corporation (Bscic) industrial estates, aiming to ease business operations after Bscic's call for a full tax waiver.

At present, city corporations, municipalities, and union parishads collect holding tax at varying rates. City corporations charge 23% on the assessed annual value of industrial and commercial properties, while municipalities levy 3-7%, and union parishads 1-7%.

According to sources, the holding tax for factories in Bscic industrial estates may now be capped at a maximum of 5% within city corporation areas and 2% at the municipal and union parishad levels – a significant relief for small industries.

Bscic Chairman Md Saiful Islam told The Business Standard on 6 January that Bscic had formally sought a full exemption for all industrial establishments in Bscic estates. "We sent a letter to the Local Government Division requesting exemption from holding tax for industries in Bscic estates," he said.

Following the proposal, the Local Government Division held meetings on 4 December last year with city corporations, municipalities, and union parishads. While a complete waiver was not approved, officials agreed to substantially cut the tax burden.

However, the exact rates are yet to be finalised by the respective local government authorities.

A senior Bscic official, speaking on condition of anonymity, said many industrial units in Bscic estates have not been paying holding tax for years, leading to trade licence suspensions and operational difficulties. "In many areas, factories cannot renew trade licences due to disputes over holding tax, disrupting business and discouraging investment," the official said.

The official also noted that Section 24 of the Bscic Act 2023 allows for exemption of industrial units in Bscic estates from holding tax. He referenced the 2020 exemption of industrial units under Bangladesh Export Processing Zones Authority (Beza) from local taxes and fees, which prompted investors to demand similar treatment.

According to Bscic data, there are 83 industrial estates across the country – 12 within city corporation areas, 27 in municipal areas and 44 in union parishad areas. These estates contain 13,139 industrial plots, of which 11,513 have been allocated to 6,295 industrial enterprises, including 887 fully export-oriented units.

Excluding land and buildings, total investment in these enterprises stands at Tk58,000 crore. In the 2024–25 fiscal year, factories in Bscic estates produced goods worth Tk65,352 crore, with exports accounting for Tk30,947 crore. During the same period, the enterprises paid Tk4,424 crore in taxes and VAT to the government.

However, a senior official of the Local Government Division said holding tax and trade licence fees remain critical revenue sources for local authorities, who also maintain roads, street lighting, and waste management for industrial areas. "While full exemption is not feasible, Bscic industries contribute substantially to employment, production, and exports. The decision is to reduce holding tax as much as possible," the official said.

The impact of non-payment has already been felt in areas such as the tannery industrial zone under Tetuljhora Union Parishad in Hemayetpur, Savar, where trade licence renewals and new licences were blocked due to unpaid holding tax.

The Local Government Division has now instructed all city corporations, municipalities, and union parishads that payment of holding tax will no longer affect the issuance or renewal of trade licences. Any application for a trade licence must be processed in accordance with the rules.

Bscic Chairman Md Saiful Islam hoped that, with this, industries in Bscic estates should no longer face obstacles in obtaining trade licences.

The simmering conflict between Bangladesh's textile mills and garment exporters has exposed a fault line at the heart of the country's export economy—one that policymakers can ill afford to mishandle.

The immediate trigger was a commerce ministry letter asking the National Board of Revenue (NBR) to scrap the zero-duty facility for yarn imports under the bonded warehouse system. The ministry believes duty-free imports have tilted the playing field against local spinning mills and should be suspended to protect domestic producers.

While the NBR has yet to act on the 12 January request, the response from the two industries has been swift—and sharply divided.

Garment exporters have called the proposal "suicidal", warning that removing access to cheaper imported yarn would cripple competitiveness in global markets. Textile millers, on the other hand, see the move as a "lifeline" and have demanded immediate action. The Bangladesh Textile Mills Association (BTMA) has gone a step further, threatening to shut down mills from 1 February if the interim government fails to intervene.

This is not a clash between rival sectors. The two industries are deeply interdependent—and together form the backbone of Bangladesh's export economy.

The labour-intensive apparel sector earned nearly $39 billion last fiscal year, accounting for about 85% of total merchandise exports. The capital-intensive textile sector, with investments of around $23 billion, supplies yarn and fabric to garment factories. Both employ millions, rely heavily on bank financing and are highly exposed to global market shocks.

Trade and tariff analysts warn that a hostile stand-off risks destabilising the wider economy at a time when business confidence is already fragile and investors are waiting for clarity following the 12 February national elections. Supporting one sector at the expense of the other, they caution, could push the entire value chain into a deeper crisis.

How the standoff emerged

Bangladesh once relied heavily on imported yarn and fabric. Over the past three decades, however, large investments have created strong backward linkages, enabling local producers to supply nearly all knitwear demand and around half of woven garments.

That progress has come under pressure in the past two to three years. As imported yarn—mainly from India—has become cheaper, garment exporters have increasingly shifted to imports. Government data show yarn imports doubled in the two years following FY2022–23, with India dominating the supply.

The fallout for local mills has been severe. As garment orders slowed, spinning mills accumulated inventories three to four times higher than normal, while nearly half of installed capacity went idle. The slowdown spread to weaving, dyeing and printing, affecting operations across nearly 2,000 textile units.

After months of appeals from mill owners, the government moved to curb duty-free yarn imports under bond licences. Once the proposal became public, exporters reacted sharply. The BTMA's shutdown threat soon followed, pushing the two sectors into open confrontation.

BTMA argues that continuing zero-duty imports poses an existential threat to local mills. Garment manufacturers' associations—BGMEA and BKMEA—counter that scrapping the bond facility would raise production costs by 8% to 10%, adding more than $2 billion annually to exporters' expenses.

Without duty-free imports, exporters would face additional duties of around 37% on yarn, forcing them to source locally at an extra cost of $0.40–$0.60 per kilogram.

At present, Indian yarn costs about $2.55 per kg, while Bangladeshi mills say they cannot sell below $2.80—and even then struggle to break even. Exporters argue that buyers will not absorb the difference. Millers say the comparison is unfair.

Why local yarn costs more

Bangladeshi spinning mills argue that Indian exporters benefit from extensive government support, allowing them to sell yarn in Bangladesh at prices lower than in India's domestic market—what local producers describe as dumping.

According to industry estimates, Indian incentives provide benefits of nearly $0.30 per kg through export rebates, technology upgrade funds, production-linked incentives and state-level subsidies on power, land and financing.

By contrast, support for Bangladesh's textile sector has steadily declined. Cash incentives for garments made with local yarn have fallen from as high as 25% to just 1.5%. Gas prices jumped by 179% in a single adjustment three years ago. Bank interest rates have climbed to around 16%, while access to low-cost loans under the Export Development Fund has narrowed. Reduced tax rate facilities have also been withdrawn.

Some mills have compounded their problems by over-investing in high-end machinery, increasing debt burdens. The result is a widening competitiveness gap between textile producers in Bangladesh and India.

Is a middle path possible?

Economists argue that while growing dependence on imported yarn carries long-term risks—particularly supply concentration—cutting off access to cheaper inputs abruptly could damage the $40 billion garment export sector.

Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said the government should explore time-bound solutions rather than blunt import restrictions.

These could include limited cash compensation, special loan facilities within LDC rules, anti-dumping investigations, or a quota system that allows duty-free imports up to a certain threshold.

Others suggest reallocating part of the government's 0.3% special cash incentive on garment exports—worth nearly Tk2,000 crore annually—to support the textile sector directly.

Commerce Secretary Mahbubur Rahman acknowledged the dilemma, saying the government is examining alternatives.

"The textile industry is facing problems, no doubt. Something has to be done," he told The Business Standard. "We are thinking about what options are possible."

"There are ways. There could be a mix— imposing restrictions at places and relaxing steps at other places, so that all sectors are treated how they should be," said Muhammad Abdul Mazid, former chairman of NBR.

"They should not be seen as two mere industries, they are a vital part of the economy. There must be a holistic approach to balance the tariff issues," he said. While NBR can reassess the impact on withdrawal of bond facilities from certain industries, the commerce ministry has to align tariff structure to the country's key trade partners, he said, suggesting all parties involved to sit together to find solutions.

Cash incentives, subsidies, loans and weighing on options such as anti-dumping duty are among other measures suggested to support the industry which is deemed to be affected by changes in import tariff structure.

The challenge now is to act quickly—and carefully. A misstep could fracture a value chain that took decades to build, at a time when Bangladesh can least afford another economic shock.