Investors in Bangladesh's economic zones are losing confidence after paying substantial amounts for plot allocations without receiving promised infrastructure and utility services, particularly uninterrupted gas and industrial water.

Many companies have yet to begin production because of utility shortages and slow infrastructure development, Bangladesh Economic Zones Investors' Association (Bezia) Chairman MA Jabbar said.

He raised the concerns at a meeting between the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and BEZIA at the BGMEA Complex in Uttara, Dhaka, yesterday. The meeting discussed the progress of plots allocated in five government economic zones prioritised for full operationalisation in the first phase, as well as policy barriers faced by investors.

According to a press release, only 27 companies are currently in production across the five government economic zones, covering 39,000 acres. Only 37% of the total allocated land is currently operational.

The meeting stressed the need to urgently resolve shortages of uninterrupted gas and industrial water. The two organisations also decided to jointly urge the government not to impose additional service charges before factories become fully operational.

To improve the investment climate, BGMEA and Bezia agreed to jointly raise several policy issues with the government. They called for a complete waiver of Beza-imposed service charges on utility bills until the promised uninterrupted utility supply is ensured.

They also sought equal sector-based cash incentives for investors inside economic zones, matching those available to businesses outside the zones.

The organisations termed the requirement for both master leaseholders and subsequent sub-lessees to pay Vat at 15% as double taxation and demanded a complete waiver of VAT on lease tariffs.

The meeting also called for allowing deemed exports to domestic bond-licence holders without EXP and EP documentation to reduce administrative complications and time loss.

Other priorities included making mutation of 99-year leases bankable and fully implementing one-stop services in economic zones.

Jabbar said 41 BGMEA-affiliated units have invested in the National Special Economic Zone in Mirsarai, Chattogram. This creates scope for BGMEA and Bezia to jointly address national and policy issues affecting the garment sector, he said.

He proposed including a BGMEA representative on BEZIA's board to strengthen coordination and promote sustainable industrialisation in economic zones.

BGMEA President Mahmud Hasan Khan welcomed the proposal and said the association would soon nominate a qualified representative.

The Bezia delegation was led by Jabbar and included Vice-President Md Halimuzzaman, Director Delwar H Titu, CEO Aparup Chowdhury and member Md Mustafizur Rahman. The BGMEA delegation was led by Khan and included Vice-President (Finance) Mizanur Rahman.

At the end of the meeting, the two organisations expressed hope that their joint policy advocacy would encourage the Bangladesh Economic Zones Authority to take swift and effective measures to resolve infrastructure challenges and policy complications in the economic zones.

The cabinet today (10 August) gave final approval to the draft Bank Resolution (Amendment) Act, 2026, repealing a provision that allowed former directors or owners of banks undergoing or slated for mergers to regain control under relatively favourable terms.

The approval came at a cabinet meeting chaired by Prime Minister Tarique Rahman at the Bangladesh Secretariat, according to a press release.

Under the Article 18 (A) of the existing bank resolution act, former directors or owners of banks, merging or listed for mergers, could pay 7.5% upfront of the amount injected by the government or the Bangladesh Bank to reclaim the banks while the remaining 92.5% was to be repaid within two years at 10% simple interest.

The provision was introduced as a market-based alternative to conventional bank resolution tools, allowing troubled banks to remain operational while being restructured, addressing capital and liquidity shortfalls, protecting depositors and investors, and reducing the government's financial exposure.

However, no individual or institution applied under the provision after meeting its conditions, prompting the government to move to repeal it altogether.

The cabinet also cleared the draft of the National Human Rights Commission Act, 2026 and the draft Visa Policy 2026 at the meeting.

The national human rights commission act is essential to protect, promote and ensure human rights.

According to the proposed law, the Commission will comprise a chairman and four commissioners, including at least one woman, following the recommendation of a search committee.

The cabinet also approved the draft Visa Policy 2026, aimed at making the entry and exit of foreigners into Bangladesh easier and more orderly, attracting foreign direct investment (FDI), businesses and skilled human resources, and modernising the existing visa system.

The new visa policy also aims to promote tourism and the hospitality sector, ensure technology and knowledge transfer, maintain national security and international diplomatic balance, and develop a modern, service-oriented immigration framework based on the principle of reciprocity.

Bangladesh managed to stem the downturn in its tax-to-GDP ratio last fiscal year with the proportion having edged up by 0.08-percentage point notwithstanding sluggish investment and economic activity, and waning purchasing power of both individuals and businesses.

As per the provisional revenue-mobilisation data from the National Board of Revenue (NBR), the tax-to-GDP ratio stood at 6.78 per cent in FY2025-26, compared to 6.70 per cent a year earlier.

However, the ratio slipped last year from 7.20 per cent in FY24.

The calculation is based only on the NBR's provisional tax-collection figures. The ratio may change once data on non-tax revenue and revenue collected by agencies other than the NBR are incorporated.

The NBR accounts for nearly 90 per cent of Bangladesh's domestic revenue mobilisation meant for financing the national budget.

It collected Tk 4.15 trillion in revenue in FY2025-26, registering a Tk 880-billion shortfall against its revised target of Tk 5.03 trillion.

The shortfall against the original target of Tk 4.99 trillion stood at Tk 840 billion.

Officials say repeated setting of "unrealistic revenue targets" is putting pressure on tax officials and demoralising them when they fail to get to the goals.

A senior NBR official has said revenue mobilisation largely depends on economic activity, particularly development expenditure under the Annual Development Programme (ADP).

But the latest ADP-implementation data show Bangladesh recorded one of its lowest implementation rates last year-only 67.52 per cent of the annual allocation spent.

"Unless overall economic activity normalises, revenue collection will not pick up to the expected level," the NBR official told The Financial Express.

Senior Research Director of the Centre for Policy Dialogue (CPD) Towfiqul Islam Khan thinks higher international prices of commodities, including fuels, helped generate additional revenue during the year.

He also points to disruption during the final quarter of FY2024-25 amid protests within the NBR over the proposed bifurcation of the revenue authority.

"However, the process or any systematic changes are missing, and the NBR is running at its traditional pace, posing challenges to meeting revenue targets in the future too," he says.

Administrative loopholes must be addressed, he suggests, adding that it is unrealistic to expect comprehensive reform within a year, but the government needs to start the process immediately.

He also suggests the government reduce expenditure and prioritise spending, given the country's persistently low tax-to-GDP ratio.

Economists say the marginal increase in the ratio is not significant, particularly as the appetite for domestic revenue is increasing amid a decline in foreign funding sources.

According to provisional NBR data, revenue collection increased by around Tk 450 billion from the previous fiscal year despite continued economic challenges.

Overall revenue collection grew by 12 per cent in FY2025-26.

The NBR, however, once again missed its revenue target, continuing a pattern seen in previous years.

Officials say weak development expenditure had a significant impact on domestic revenue mobilisation as a substantial portion of tax revenue comes from source taxes generated through government development activities.

At the same time, private-sector investment remained subdued, reflecting weak demand for credits and a cautious business environment.

Of the total NBR collection last fiscal year, VAT generated Tk 1.57 trillion, income tax Tk 1.45 trillion, and customs duty and import taxes Tk 1.12 trillion.

The modest improvement in the tax-to-GDP ratio, therefore, offers little comfort to policymakers, economists say, as Bangladesh's fiscal needs to continue to rise while the capacity to mobilise domestic resources remains constrained.

Immediate-past NBR chairman Abdur Rahman Khan said it was challenging to mobilise higher revenue last year than the previous one amid economic hurdles.

"The government should consider providing sufficient budget and logistics for revenue mobilisation so that taxmen can work smoothly," he suggests.

For anyone in Europe who still thought climate change was a problem for future generations, this summer’s sweltering heatwaves have brought home the reality that its costly and life-altering economic impacts have already arrived.

Record heat and droughts this summer - which scientists say are exacerbated by global warming - have wreaked havoc in power production, shipping and public health systems, while this wildfire season is on track to be Europe’s biggest ever.

Together, the hit to the region’s economy can already be measured in the hundreds of billions of euros, economists and academics estimate.

But they warn this is just the beginning, as costs are set to rise faster than temperatures.

Climate is changing more rapidly in Europe than on any other continent and the damage is already stretching public finances, setting off wild swings in inflation, redrawing the tourism map, and forcing the bloc to rethink how power is produced and how goods are transported.

“What makes 2026 particularly worrying from an economic perspective is that there are multiple episodes of extreme events,” said University of Mannheim economist Sehrish Usman.

“Take heatwaves, droughts, wildfires... these events are taking place at the same time and mostly in the same regions, compounding their impact,” she said.

Temperatures hit records in June and July, and the economic damage will likely exceed all previous marks, economists say.

Traffic on the Rhine and the Danube rivers, key cargo arteries, is severely limited because of low water levels, more than a half dozen nuclear generators have shut or curtailed production due to cooling difficulties.

Agricultural yield estimates have been cut with crops harvested late, such as maize and sunflower, suffering a 6-7 percent loss already in July. Heat curtails human productivity and has already claimed tens of thousands of lives, with Germany alone reporting more than 10,000 heat-related deaths.

Meanwhile, the costs of the emergency response, like fighting fires or curtailing power use, further stretch budgets.

ING estimates that the halt of traffic on the Rhine alone will lower the GDP of Germany, the world’s third-largest economy, by 0.3 percentage points this year, while Hungary’s MBH Bank sees a 0.1 percentage point GDP hit for every week the country’s largest nuclear generator is offline.

Allianz, the German insurer, estimates the two-week June heatwave alone will cut the GDP of Europe by 0.3 percentage points,

and climate change will shave 5-7 percent off growth by 2030 for the most exposed economies like Spain, France and Italy.

“The total bill for this year will be much larger,” said Hazem Krichene, an economist at Allianz.

“This figure doesn’t account for the fires, droughts, different flood events or the expected El Niño.”

Given that the euro zone is expected to grow just 1 percent this year, the hit is sizable.

Yet Usman says the full extent of the economic damage will only be felt several years down the line.

“You’d expect the damage to be largest in the year an extreme event happens and then to fade but we find the opposite,” Usman said.

“The economic impact grows over the following years because the extreme weather set off a chain of slow economic consequences.”

Southern Europe could take the biggest hit as temperature spikes are the largest there, cutting tourism income, exacerbating crop failures and inducing outward migration.

“Can you see tourists marching through southern Italy or Spain in 45 degrees? I can’t. So, I think the nature of tourism will change,” ING economist Carsten Brzeski said.

The south may get more year-round tourists but summer peaks will drop as vacationers move north, hitting the southern hospitality industry, Brzeski argued.

The south will also take a bigger food price hit from extreme weather, complicating life for the European Central Bank, which is already struggling to keep inflation at target.

“You see bigger effects of extreme temperatures on food prices in places that are already hotter, so if you’re in Southern Europe, you’ll see a bigger effect,” said Maximilian Kotz, a researcher at the Barcelona Supercomputing Center.

Extreme heat in 2022 lifted euro zone inflation by 0.34 percentage points via higher food prices, with the south taking a disproportionate hit, Kotz estimated.

Meanwhile, a halt in river transport is making it harder for fuel to reach parts of Europe, widening regional price differences. “The fiscal consequences fall most heavily on the economies least able to absorb them,” Allianz said in a research note.

Reductions in annual tax revenue from lost output could reach 1.8 percent in France, 1.3 percent in Italy and Spain as progressive tax systems mean revenues fall faster than output, it estimates.

Business profit margins will also decline, depressing investment and exacerbating the economic loss.

Costs meanwhile surge, both because governments have to fund the emergency response and must invest, such as in future-proofing power generation or transportation routes.

“A key concern is that countries still rely far too much on ad hoc emergency response, which is both expensive and also often quite inefficient,” said Heather Grabbe, a senior fellow at the Bruegel think tank.

But investors may push back if governments try to spend more.

Debt levels are already high - especially in France and Italy - and countries need to invest in defence and the green energy transition.

The dilemma could draw in the ECB, which bought up trillions of euros worth of countries’ debt in the past decade to keep borrowing costs depressed when inflation was too low.

“With such a long list of spending needs, the trend will be towards higher government debt,” ING’s Brzeski said.

“This will then mean pressure on the ECB to step in and do more quantitative easing, if there is a sudden selloff in bond markets.”

Bangladesh's gross foreign exchange reserves stood at $32.15 billion under the International Monetary Fund's BPM6 methodology as of today (10 August), according to the latest Bangladesh Bank data.

The BPM6 figure is considered a more internationally comparable measure of a country's usable foreign exchange reserves.

The latest reserve position comes a day after Bangladesh Bank reported that gross reserves had crossed the $32 billion mark.

The central bank has been working to maintain stability in the country's external sector and foreign exchange market amid efforts to strengthen Bangladesh's foreign exchange position.

Solar Equity Venture has signed an issue management agreement with LankaBangla Investments and Southeast Bank Capital Services Limited to raise capital through an initial public offering (IPO).

The agreement was signed on Sunday in the capital by Ezaz Al Qudrat A Mazid, managing director of Solar Equity Venture; Iftekhar Alam, CEO of LankaBangla Investments; and Md. Mominul Haque, CFA, managing director of Southeast Bank Capital Services Limited, according to a press release.

LankaBangla Investments and Southeast Bank Capital Services Limited will work as joint issue managers. Solar Equity Venture was founded with a clear vision-- to accelerate Bangladesh’s transition toward a clean, resilient, and sustainable energy future, reads a press release.

Building on the extensive experience and proven track record of its sponsor company, Solar EPC Development Ltd., Solar Equity Venture combines renewable energy project development expertise with innovative investment solutions to unlock scalable clean energy opportunities. “Since 2018, our team has successfully developed, financed, engineered, procured, constructed, and managed high-quality solar energy projects across Bangladesh, creating a strong foundation for the company’s next phase of growth,” said Mr Mazid.

“This strategic partnership represents an important milestone in our journey to build a scalable and institutionally structured renewable energy investment platform, mobilise long-term capital, expand our clean energy portfolio, and create sustainable value for investors and stakeholders,” he noted.

“Together, we aim to contribute meaningfully to the growth of Bangladesh’s renewable energy sector and capital market while advancing the country’s clean energy transition,” he added.

Solar Equity Venture believes that by establishing an effective link between renewable energy and the capital market, it will be possible to create new opportunities for domestic and foreign investors to participate in the growth of Bangladesh’s clean energy sector.

A meeting was held today (10 August) to discuss the legal framework and organisational structure of the proposed Invest Bangladesh Authority, which will integrate the Bangladesh Investment Development Authority (Bida), Bangladesh Economic Zones Authority (Beza) and Bangladesh Public-Private Partnership Authority (PPP Authority).

"The main discussion was about what the law and structure should look like. A second meeting will be held within a week to finalise the structure, Bida Executive Member and Head of Business Development Nahian Rahman Rochi told The Business Standard.

The new authority is expected to begin operations after the gazette is issued. A committee headed by the cabinet secretary is overseeing the integration of the three investment-related agencies.

The legal basis for the new authority was established through the passage of the Invest Bangladesh Bill 2026 in parliament, which provides for the integration of the three organisations' functions.

Under the new law, investment- and industrial-zone-related activities will come under a unified institutional framework. Investment and business-related registrations, licences, approvals and clearances will also be provided through a single digital platform.

The government aims to reduce overlapping functions and coordination gaps among the existing agencies and provide domestic and foreign investors with faster, easier and more coordinated services.

New authority to streamline investment services

Once formed, the Invest Bangladesh Authority will take over the assets, records, agreements, liabilities and other matters of Bida, Beza and the PPP Authority, along with their officials and employees.

The statutory body will be headquartered in Dhaka and may, with government approval, establish branches nationwide and liaison offices abroad. It will have a chairman and seven members, with the chairman serving as chief executive.

Its functions will include identifying investment opportunities, promoting Bangladesh to domestic and foreign investors, removing investment barriers and coordinating with relevant ministries and agencies.

It will also advise on using unused public land and facilities productively, assist in appointing foreign officials and consultants in industrial zones, help draft investment agreements and develop an industrial information database.

The governing board will include relevant ministers, the principal secretary to the prime minister, Bangladesh Bank governor, relevant secretaries and private-sector representatives, with the prime minister or nominee as chair.

A single digital platform will provide registration, licences, approvals, clearances, visas and work permits, with relevant agencies connected to it. The government expects the unified structure to reduce administrative overlap and improve the investment climate.

The Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) have suspended trading in the shares of three non-bank financial institutions (NBFIs) after Bangladesh Bank declared them "non-viable" under the Bank Resolution Act, 2026.

The affected companies are Fareast Finance and Investment, FAS Finance and Investment, and International Leasing and Financial Services. The suspension took effect today (10 August) and will remain in force until further notice, the bourses said.

Before the suspension came into effect, all three stocks fell sharply on the Dhaka bourse. International Leasing and Fareast Finance each declined 8.69% to Tk2.10, while FAS Finance dropped 7.40% to Tk2.50.

Bangladesh Bank declared the three institutions non-viable as part of its resolution proceedings, citing severe financial weaknesses and their inability to meet obligations to depositors and other creditors.

The central bank had earlier initiated resolution proceedings against four financial institutions under the Bank Resolution Act, 2026. The fourth, Aviva Finance, was also declared non-viable but is not listed on the bourses.

Bangladesh Bank said the resolution measures were aimed at restoring good governance and accountability in the financial sector, protecting depositors and other creditors, and rebuilding public confidence.

Following the declaration, the central bank exercised its powers under the new law to dissolve the boards of directors of the affected institutions and cancel the appointments of their chief executive officers. Administrators have been appointed to oversee the resolution process and ensure its effective implementation while safeguarding the interests of depositors and other stakeholders.

The decision followed a review of the institutions' financial strength and prospects for recovery, based on a decision of the Bangladesh Bank board.

According to the central bank, the key factors behind the declaration included large capital shortfalls, high levels of classified loans and investments, inadequate liquidity, deteriorating earning capacity, and the inability to repay liabilities owed to depositors and creditors.

Bangladesh Bank officials have been appointed as administrators and associate administrators to oversee the administration, management and resolution activities of the institutions.

The country's premier bourse rebounded yesterday, snapping a two-day corrective spell, as investors reacted enthusiastically to rumours of a major regulatory shift.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) rose 22 points, or 0.38%, to close at 5,844, driven largely by a late-session surge in buying interest across the banking and insurance sectors.

Market insiders said sentiment shifted sharply mid-session after word spread that the Bangladesh Securities and Exchange Commission (BSEC) may withdraw the mandatory price-to-book ratio requirement for margin loans against shares of banks, non-bank financial institutions (NBFIs), and general insurers.

A leader of the DSE Brokers Association told The Business Standard that the development acted as a key catalyst for the rally.

"The prospect of easier margin loan access for these core sectors drew investors in the final hour of trading, pushing the index up and offsetting earlier caution," he said. The blue-chip DS30 index also gained, rising 8 points to close at 2,185.

Despite the rise in indices, market participation cooled slightly, with total turnover on the DSE falling 6% to Tk908 crore.

The market breadth, however, remained positive, with 199 issues advancing compared to 129 that declined, while 64 scrips remained unchanged.

The insurance sector emerged as the star performer of the day. General insurance scrips accounted for the highest share of turnover at 22.8%, delivering a sectoral return of 2.7%. The textile and pharmaceutical sectors followed in terms of trading volume, contributing 19.6% and 8.6% respectively.

In terms of sectoral returns, the miscellaneous and services sectors also posted healthy gains of 2.1% each.

On the flip side, the cement sector faced the steepest correction of 1.2%, while NBFIs remained under pressure, shedding 0.6% on average.

Individual stock performance featured Northern Insurance and Republic Insurance at the top of the gainers' list, both surging by over 9.8%. Heavyweight Beximco Limited also saw a robust 9.67% jump.

Conversely, the losers' chart was dominated by struggling NBFIs, with Peoples Leasing, International Leasing, and Fareast Finance all recording significant price falls, largely due to ongoing concerns regarding the central bank's liquidation plans for weak financial firms.

The bullish sentiment extended to the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) ended 17 points higher at 9,539 and the CASPI rose by 10 points to reach 15,628. Trading activity at the port city bourse saw a notable 13% jump, with turnover reaching Tk35 crore.

Terming the conflict worst global crisis since the Pandemic, ICCB said US-Israeli war on Iran has become one of the most serious geopolitical and economic crises in recent history, threatening global peace, trade, energy security and food supplies.

What began as a military confrontation is now sending shockwaves through international markets and exposing the vulnerability of an increasingly interconnected global economy, For the global business community, the consequences are profound, according to ICCB.

The conflict has disrupted critical energy infrastructure and endangered shipping through the Strait of Hormuz, one of the world's most important oil transit routes.

Rising oil and gas prices have increased transportation and production costs worldwide, placing renewed inflationary pressure on both developed and developing economies.

As a net importer of fuel, fertilizer and several essential commodities, Bangladesh faces mounting pressure from higher global energy prices, increased shipping and insurance costs, and disruptions to international supply chains, the editorial said.

These challenges are likely to fuel inflation, widen the trade deficit, increase fiscal pressure through higher energy subsidies, and raise production costs for export-oriented industries, particularly the ready-made garments sector, ICCB warned.

Rising fertilizer prices could also affect agricultural productivity and food prices, while prolonged geopolitical uncertainty may discourage foreign investment and complicate Bangladesh's efforts to sustain economic growth, maintain macroeconomic stability and achieve a smooth graduation from the Least Developed Country (LDC) category, the report said.

The economic and humanitarian costs of prolonged US-Iran conflict are becoming increasingly stark.

According to the United Nations Office for the Coordination of Humanitarian Affairs, the war in Iran is absorbing vast financial resources-estimated at around $2 billion per week-that could otherwise be directed toward saving more than 87 million lives globally, ICCB said.

International financial institutions have already warned that prolonged hostilities could significantly weaken global economic growth while fuelling inflation, according to the report.

For many developing countries, particularly those heavily dependent on imported energy and food, the conflict risks widening fiscal deficits, increasing debt burdens and delaying sustainable development goals.

According to the latest International Chamber of Commerce (ICC) and Oxford Economics joint Report, economic policy uncertainty has imposed a significant cost on global business investment.

The analysis finds that the surge in economic policy uncertainty in 2025 reduced real business investment by 1.4% across ten major economies, equivalent to approximately US$202 billion in lost or delayed capital spending. In an adverse 2026 scenario, that cost could rise to US$380 billion, while a return to greater policy clarity could generate an additional US$252 billion in investment-a swing of more than US$630 billion. In short, predictability and stability remain major economic assets.

Oil prices were little changed on Monday after surrendering earlier gains, as optimism over talks to reopen the Strait of Hormuz was tempered by Iran's insistence that the United States satisfy several demands before the waterway could reopen.

Brent crude futures stood at $83.54 a barrel, off 1 cent, by 0643 GMT, while US West Texas Intermediate crude futures fell 15 cents, or 0.2%, to $78.03 a barrel.

Both benchmarks had fallen more than 7% last week on hopes that Iran and Oman were close to reaching a deal that would result in a reopening of the Strait of Hormuz, which carried a fifth of the world's oil before the war.

While Iran said on Sunday that a deal with Oman was in its "final stages", it reiterated that the waterway would only reopen once Washington met other conditions, including US compensation for widespread US attacks on Iran.

"Crude oil prices remain caught between opposing forces, as markets assess the possibility of a breakthrough over the Strait of Hormuz against Iran's conditions for reopening the strategic waterway," said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.

Iran and the US are not engaged in talks and Tehran will not start them as long as Washington breaches an interim deal signed in June, Iranian Foreign Minister Abbas Araqchi said on Sunday.

Meanwhile, in a further threat to supply, the Iran-aligned Houthis said they had hit Saudi Aramco's Jazan refinery on Sunday.

The attack came two days after the kingdom signed a defence pact with Sunni Muslim allies Turkey and Pakistan in response to growing regional instability from the US-Israeli war on Shi'ite Iran.

Separately, the United Arab Emirates' ADNOC said on Friday that 15 of its vessels had been attacked transiting the Strait of Hormuz since the beginning of the conflict.

"Any major progress towards restoring unrestricted shipping could exert downward pressure on oil prices, while a breakdown in negotiations or renewed supply disruptions could quickly revive the geopolitical risk premium," Sachdeva said.

angladesh has moved to further strengthen trade and investment ties with New Zealand, targeting expanded cooperation across agricultural technology, dairy, green energy, pharmaceuticals, leather, jute, sustainable textiles and information technology.

Officials highlighted opportunities for joint investment, business-to-business links and export growth during talks with New Zealand Trade and Enterprise (NZTE).

Commerce Secretary Md Ataur Rahman led the Bangladeshi delegation. Joint Secretary (FTA) Md Firoz Uddin Ahmed and Deputy Secretary (FTA) Farhana Islam were also present, while NZTE’s Market Manager for Southeast and East Asia, Rachel McGuckian, attended the meeting.

Annual bilateral trade stands at around $450 million, with dairy and metal products accounting for a significant portion of Bangladesh’s imports from New Zealand, the meeting noted. Bangladeshi exports to New Zealand total about $147 million, with ready-made garments accounting for a major share.

Dhaka requested NZTE’s cooperation in expanding its non-RMG exports to New Zealand to make bilateral trade more balanced and diversified, said a commerce ministry press release.

The ministry highlighted pharmaceuticals, environment-friendly jute goods, leather, sustainable textiles and IT services as areas for new market opportunities in the New Zealand market.

Highlighting internationally recognised certifications and quality production systems, the Bangladeshi delegation said the country’s drug manufacturers could supply quality generic medicines and vaccines to New Zealand’s healthcare sector at competitive prices.

They also highlighted the availability of more than 650,000 skilled technology professionals and proposed business partnerships with New Zealand technology companies in software, fintech and digital services.

On the investment front, Bangladesh invited New Zealand businesses to invest in its special economic zones, highlighting opportunities in dairy processing, specialised nutritional products, cold-chain logistics, agri-tech, advanced manufacturing, renewable energy and environmentally friendly technologies.

The Bangladeshi delegation said various investment facilities were available for foreign investors in the special economic zones, adding that New Zealand companies could use these opportunities not only to invest in Bangladesh but also to expand their businesses into the wider South and Southeast Asian markets.

To turn bilateral cooperation into concrete outcomes, Bangladesh proposed three immediate steps: direct communication between NZTE’s Southeast and East Asia team and the Bangladesh Investment Development Authority (BIDA), virtual B2B meetings connecting New Zealand businesses with Bangladeshi exporters in pharmaceuticals, IT and leather, and enhanced coordination with New Zealand’s foreign affairs and trade ministry.

The two sides also agreed to establish a bilateral Business Council, and to organise and participate in trade fairs.

The meeting stressed the importance of building a balanced and mutually beneficial economic partnership by utilising the respective strengths of both countries.

Officials expect combining Bangladesh’s large market and manufacturing capabilities with New Zealand’s technological expertise and high-value export capacity to take bilateral trade and investment relations to a new height.

The proposed cost of the MRT Line-5 Southern Route has been cut by another Tk2,217.67 crore, mainly by excluding around Tk2,000 crore in payable interest from the project cost.

Revisions to land requirement and administrative costs have also helped bring the cost of the metro line, connecting Gabtoli and Daserkandi, down to Tk45,503.77 crore, officials said.
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The latest reduction follows a review meeting held at the Physical Infrastructure Division of the Planning Commission on 16 July. Dhaka Mass Transit Company Limited (DMTCL) sent the revised Development Project Proforma (DPP) to the Planning Commission yesterday.

Md Abdul Wohab, project director, said the latest cut was mainly achieved by reducing administrative expenses and revising the interest calculation.

"Some administrative costs previously included in the project have been reduced. The interest payable after the loan moratorium ends has now been separated," he said.

"These changes have reduced the project cost by around Tk2,000 crore. The remaining amount was adjusted through small reductions in several other cost items," he added.

Wohab said the cost reduction would not affect the project. "The project can move into implementation once the revised DPP is approved. Necessary preparations, documents, and land acquisition plans have already been completed."

Cost down by Tk9,115.19cr from original proposal

During the Awami League government, DMTCL had proposed Tk54,618.96 crore for implementing the project. Following the government's fall, the project cost was reviewed and reduced to Tk47,721.44 crore during the interim government's tenure. The latest revision has brought the cost down by Tk9,115.19 crore from the original proposal.

The project has been awaiting approval for a long time. After the current government took office, the project was presented to the planning minister for approval. They instructed officials to bring the proposed cost down further and make it more reasonable.

Project director Wohab said the current government is interested in implementing the project quickly and has a positive stance on it. "The project, which had remained stalled, has now become active again, and necessary steps are being taken to start work soon."

Cost cuts in interest, land acquisition

Planning officials said the project cost was reduced across multiple components after reviewing each item to identify areas where modest cuts would not affect implementation.

The biggest reductions came from "Reserve for Commitment Charge on Loan" and "Interest on Foreign Debt", which together accounted for nearly Tk2,000 crore in savings.

"We decided that these costs didn't need to remain in the project budget for now. The Finance Division will make the payments through its regular procedures," one official said.

Project documents show reducing land requirement from 23.09 hectares to 9.104 hectares alone is expected to save around Tk100 crore in land acquisition costs. Spending on vehicle purchases, consultancy, honoraria and other administrative expenses has also been reduced.

Tk30,306cr loans from ADB, South Korea

Under the revised proposal, the ADB and South Korea have given initial consent to provide Tk30,306 crore in loans, down from the previously proposed Tk32,332.92 crore. The government's contribution has been reduced to Tk15,197.66 crore from Tk15,388.51 crore.

The 17.2km route will include 13.1km of underground track and 4.1km of elevated track.

The route will run from Gabtoli to Daserkandi, via Technical, Kallyanpur, Shyamoli, College Gate, Asad Gate, Russell Square, Karwan Bazar, Hatirjheel, Tejgaon, Aftabnagar, Aftabnagar Centre, Aftabnagar East, and Nasirabad.

Why MRT Line-5 matters

According to DMTCL, a pre-feasibility study using primary survey data and a logit model found that 20.8% of metro passengers would shift from road-based transport.

Medium buses would account for 14.85% of passengers shifting to metro rail. Shifts from cars, motorcycles, and three-wheelers, would range from 0.02% to 2.71%.

The route alignment was finalised through an ADB-funded pre-feasibility study conducted by an international consulting firm. The study also reviewed existing MRT and BRT alignments, along with the Revised Strategic Transport Plan (RSTP) and other traffic studies.

The study estimates that around 9,24,000 passengers could use the route daily by 2031. The line is expected to meet growing east-west travel demand while helping create a more balanced and sustainable urban transport network for Dhaka.

Under the original RSTP, Line-5 was planned as Dhaka's first 35km east-west metro line. It was later divided into Northern and Southern routes. The Northern Route was assigned to Jica financing, while the Southern Route was taken up with ADB financing.

এতে কিছুটা স্বস্তি ফিরেছে বিশ্ববাজারে। তেলের দামও কিছুটা স্থির রয়েছে। এর মধ্যে বিনিয়োগকারীদের নজর এখন যুক্তরাষ্ট্রের মূল্যস্ফীতির তথ্যের দিকে। আগামীকাল দেশটির জুলাইয়ের ভোক্তা মূল্যসূচক বা সিপিআইয়ের তথ্য প্রকাশ হওয়ার কথা। এসবের প্রভাবে গতকাল বৈশ্বিক শেয়ারবাজারে ঊর্ধ্বমুখী প্রবণতা দেখা গেছে। খবর রয়টার্স।

ইউরোপের প্রধান শেয়ারবাজারগুলোর সূচক স্টক্স ৬০০ গতকাল বেড়েছে দশমিক ১ শতাংশ। যুক্তরাষ্ট্রের এসঅ্যান্ডপি ৫০০ সূচকের ফিউচার বেড়েছে দশমিক ২ শতাংশ। পাশাপাশি প্রযুক্তিনির্ভর নাসডাকের ফিউচার বেড়েছে দশমিক ৪ শতাংশ। বিশ্বের বিভিন্ন দেশের শেয়ারবাজার নিয়ে এমএসসিআইয়ের সূচকও বেড়েছে দশমিক ১ শতাংশ।

এশিয়ার শেয়ারবাজারেও একই প্রবণতা দেখা গেছে। জাপানের নিক্কেই সূচক বেড়েছে ২ দশমিক ১ শতাংশ। দক্ষিণ কোরিয়ার সূচক বেড়েছে দশমিক ৭ শতাংশ। এর আগে শুক্রবার যুক্তরাষ্ট্রের শেয়ারবাজারের সূচকগুলো রেকর্ড উচ্চতায় উঠেছিল। প্রত্যাশার চেয়ে দুর্বল মার্কিন কর্মসংস্থানের তথ্য প্রকাশের পর ফেডারেল রিজার্ভের সুদহার বাড়ানোর সম্ভাবনা নিয়ে বিনিয়োগকারীদের উদ্বেগ কিছুটা কমে। এর প্রভাব পড়ে এশিয়ার বাজারেও।

বিশ্ববাজারের সাম্প্রতিক গতিপথে এখন গুরুত্বপূর্ণ হয়ে উঠেছে হরমুজ প্রণালি। ইরান জানিয়েছে, প্রণালিটি দিয়ে জাহাজ চলাচলের জন্য ওমানের সঙ্গে নতুন নৌপথ নির্ধারণের বিষয়ে একটি চুক্তি প্রায় চূড়ান্ত পর্যায়ে রয়েছে।

ইরানের পররাষ্ট্রমন্ত্রী আব্বাস আরাগচি রোববার বলেন, ‘হরমুজ প্রণালির একটি “সাময়িক রুট” নিশ্চিত করতে ওমানের সঙ্গে আলোচনা চূড়ান্ত সমাধানের খুব কাছাকাছি রয়েছে।’

তবে যুক্তরাষ্ট্রকে আরো কিছু শর্ত পূরণ করতে হবে বলে স্পষ্ট করেছে ইরান। এর পরই হরমুজ প্রণালি ফের খুলে দেয়ার বিষয়টি বিবেচনা করবে দেশটি।

হরমুজ প্রণালি বিশ্ব জ্বালানি বাজারের জন্য অত্যন্ত গুরুত্বপূর্ণ একটি নৌপথ। সাম্প্রতিক সময়ে সেখানে জাহাজ চলাচল ব্যাপকভাবে কমে গেছে। এখনো প্রণালিটি দিয়ে খুব সীমিত পরিমাণে জাহাজ চলাচল করছে। ফলে বিশ্ববাজারে জ্বালানি সরবরাহ নিয়ে উদ্বেগ পুরোপুরি কাটেনি।

এর প্রভাব তেলের বাজারেও দেখা গেছে। গতকাল আন্তর্জাতিক বেঞ্চমার্ক ব্রেন্ট ক্রুডের দাম ব্যারেলপ্রতি ৮৩ ডলার ৫০ সেন্টের আশপাশে ছিল। আগের তুলনায় দাম খুব বেশি পরিবর্তন হয়নি। তবে চলতি বছরের এপ্রিলের শেষ দিকে যে দাম উঠেছিল, তার তুলনায় বর্তমান দাম অনেক কম। এপ্রিলের শেষ দিকে ব্রেন্টের দাম ব্যারেলপ্রতি ওঠে ১২৬ ডলারের বেশি।

বিশ্লেষকদের মতে, তেলের দাম স্থিতিশীল থাকা শেয়ারবাজারের জন্যও স্বস্তির খবর। কারণ জ্বালানির দাম দ্রুত বেড়ে গেলে মূল্যস্ফীতির চাপ বাড়তে পারে। এতে কেন্দ্রীয় ব্যাংকগুলো সুদহার কমানোর বদলে বাড়ানোর পথে যেতে পারে। তাই জ্বালানি তেলের বাজারে বড় ধরনের অস্থিরতা না থাকলে বিনিয়োগকারীদের ওপর চাপও তুলনামূলক কম থাকে।

বিশ্ববাজারে এখন আরেকটি বড় বিষয় যুক্তরাষ্ট্রের মূল্যস্ফীতি। রয়টার্সের জরিপে অংশ নেয়া অর্থনীতিবিদরা ধারণা করছেন, জুলাইয়ে যুক্তরাষ্ট্রের ভোক্তা মূল্যসূচক আগের বছরের একই সময়ের তুলনায় ৩ দশমিক ৪ শতাংশ বাড়তে পারে। জুনে এ হার ছিল ৩ দশমিক ৫ শতাংশ।

এদিকে যুক্তরাষ্ট্রের ফেডারেল রিজার্ভের (ফেড) নীতি সুদহার নিয়ে বিনিয়োগকারীদের প্রত্যাশাও বদলেছে। জেফরিজের জ্যেষ্ঠ ইউরোপীয় অর্থনীতিবিদ মোহিত কুমার বলেন, ‘চলতি বছর ফেড সুদহার বাড়াবে না বলে ধারণা করা হচ্ছে। তবে এ সপ্তাহের মূল্যস্ফীতির তথ্য গুরুত্বপূর্ণ হবে।’

তার মতে, জ্বালানি তেলের দাম নিয়ন্ত্রিত থাকলে ও আরো কমলে ফেডের সুদহার বাড়ানোর প্রয়োজন কমে যাবে। অর্থাৎ জ্বালানির বাজার ও মূল্যস্ফীতির তথ্য এখন ফেডের পরবর্তী সিদ্ধান্তের ক্ষেত্রে গুরুত্বপূর্ণ ভূমিকা রাখবে।

প্রতিবেদনে বলা হয়, বৈশ্বিক শেয়ারবাজার সাম্প্রতিক সময়ে রেকর্ড উচ্চতায় ওঠার পেছনে আরেকটি কারণ হলো কোম্পানিগুলোর শক্তিশালী আর্থিক প্রতিবেদন। গত প্রান্তিকে যুক্তরাষ্ট্রের বড় কোম্পানিগুলোর আয় প্রত্যাশার তুলনায় বেশি ছিল। এতে বিনিয়োগকারীদের আস্থা বেড়েছে।

ব্যাংক অব আমেরিকার বিশ্লেষকরা জানান, এসঅ্যান্ডপি ৫০০ সূচকের আওতাভুক্ত কোম্পানিগুলোর প্রায় ৯০ শতাংশের আর্থিক ফলাফল প্রকাশ হয়েছে। এসব কোম্পানির শেয়ারপ্রতি আয় বা ইপিএস আগের বছরের তুলনায় ৩০ শতাংশ বেড়েছে।

প্রকাশিত ফলাফলের প্রায় ৭৬ শতাংশই বিশ্লেষকদের পূর্বাভাসকে ছাড়িয়ে গেছে। ২০২১ সালের পর এটি সবচেয়ে শক্তিশালী ফলাফলগুলোর একটি। কোম্পানিগুলোর মুনাফা বাড়ার প্রবণতা শেয়ারবাজারে বিনিয়োগকারীদের আশাবাদ বাড়িয়েছে।

শেয়ারবাজারের পাশাপাশি বন্ডের বাজারেও কিছুটা পরিবর্তন দেখা গেছে। ১০ বছর মেয়াদি মার্কিন ট্রেজারি বন্ডের ইল্ড গতকাল ১ বেসিস পয়েন্ট কমে ৪ দশমিক ৬৪৩ শতাংশ হয়েছে। উল্লেখ্য, চলতি সপ্তাহে ১২ হাজার ৫০০ কোটি ডলারের নতুন ট্রেজারি বন্ড বাজারে আসতে পারে। ফলে বন্ডবাজারেও বিনিয়োগকারীদের নজর রয়েছে।

এদিকে মুদ্রাবাজারে তেমন বড় ধরনের পরিবর্তন হয়নি। গতকাল ইউরোর দাম সাত সপ্তাহের সর্বোচ্চ পর্যায়ের কাছাকাছি ছিল। প্রতি ইউরোর দাম ছিল ১ দশমিক ১৫৬ ডলারের কাছাকাছি।

অন্যদিকে জাপানি ইয়েনের বিপরীতে ডলারের দাম দশমিক ৪ শতাংশ বেড়ে ১৫৮ দশমিক ৪৮ ইয়েনে উঠেছে। তবে ইয়েনের দরপতন নিয়ে বিনিয়োগকারীদের মধ্যে সতর্কতা রয়েছে। কারণ জাপান সরকার মুদ্রাবাজারে হস্তক্ষেপ করতে পারে বলে এখনো আশঙ্কা রয়েছে।

জাপানের কেন্দ্রীয় ব্যাংক ব্যাংক অব জাপানের নীতিনির্ধারকরাও মূল্যস্ফীতি নিয়ে উদ্বেগ প্রকাশ করেছেন। জুলাইয়ের বৈঠকের মতামতের সারসংক্ষেপে বলা হয়, দেশটিতে মূল্যস্ফীতির ঝুঁকি বাড়ছে। এ কারণে প্রত্যাশার চেয়ে দ্রুত সুদহার বাড়ানোর প্রয়োজন হতে পারে। এতে সেপ্টেম্বরে সুদহার বাড়ানোর সম্ভাবনাও জোরালো হয়েছে।

সব মিলিয়ে বৈশ্বিক শেয়ারবাজার এখন কয়েকটি গুরুত্বপূর্ণ বিষয়ের ওপর নির্ভর করছে। একদিকে হরমুজ প্রণালিতে জাহাজ চলাচল স্বাভাবিক হওয়ার সম্ভাবনা ও জ্বালানি তেলের দাম নিয়ন্ত্রণে থাকা, অন্যদিকে যুক্তরাষ্ট্রের মূল্যস্ফীতির তথ্যের দিকে তাকিয়ে আছেন বিনিয়োগকারীরা। এর সঙ্গে যুক্ত হয়েছে ফেডের নীতি সুদহার ও বড় কোম্পানিগুলোর আর্থিক ফলাফল।

পর্যবেক্ষকরা বলছেন, এ মুহূর্তে বাজারে বড় কোনো ঝুঁকি পুরোপুরি দূর হয়নি। হরমুজ প্রণালিতে জাহাজ চলাচল এখনো সীমিত। মূল্যস্ফীতির তথ্যও সামনে আসেনি। ফলে আগামী কয়েক দিনে জ্বালানি তেলের দাম, যুক্তরাষ্ট্রের মূল্যস্ফীতি এবং ফেডের সুদহার নিয়ে প্রত্যাশার পরিবর্তন বিশ্ববাজারের গতিপথে প্রভাব ফেলতে পারে।

The Bangladesh Securities and Exchange Commission (BSEC) is likely to withdraw the price-to-book (P/B) ratio as a condition for margin loans against shares of banks and non-life insurance companies and instead use the price-to-earnings (P/E) ratio as the main valuation benchmark across sectors, officials familiar with the matter said.

The revised margin lending rules may be placed before the BSEC commission meeting tomorrow (11 August), where a final decision could be taken.

The proposed framework is expected to be more flexible than the draft rules, particularly for bank and non-life insurance shares. The maximum P/E ratio may be raised to 40 from 30 proposed in the draft.

Life insurers may remain under a separate arrangement, with flexibility in applying the P/B ratio.

Draft had P/B limits for banks and insurers

Under the draft rules, P/B was proposed as a key criterion for determining the eligibility of shares of banks, non-bank financial institutions (NBFIs) and insurance companies for margin financing.

The draft set a maximum P/B ratio of 3 for banks and 1 for insurance companies. Shares exceeding those thresholds would have been ineligible for margin loans.

The BSEC is now considering dropping the P/B condition for banks and non-life insurers and applying a common P/E-based framework instead.

The proposed P/E would be based on trailing earnings, comparing the current share price with earnings per share generated over the previous 12 months. The ratio would change as companies report new quarterly earnings.

The draft had triggered negative reactions among investors, particularly in margin-eligible stocks, leading to significant adjustments in some shares.

P/E ceiling may rise to 40

The draft proposed a maximum P/E ratio of 30 for companies in general sectors. The revised framework may raise the ceiling to 40.

If approved, shares with a trailing P/E of up to 40 could qualify for margin financing, subject to other eligibility requirements.

The higher ceiling could bring some relatively high-valued companies within the margin financing framework.

Margin financing capacity to increase

The BSEC has undertaken the reforms partly to improve capital market liquidity by increasing the financing capacity of margin financiers, including stockbrokers, merchant banks and portfolio managers.

Under the draft, a margin financier would be allowed to provide financing of up to five times its core capital or net worth, compared with the existing limit of three times.

The higher ceiling could increase investors' purchasing power and market turnover.

The draft also proposed reducing the minimum investment required for margin financing from Tk5 lakh to Tk3 lakh.

However, the CEO Forum has proposed raising it to Tk10 lakh and a common P/E benchmark applied across sectors except life insurance.

It has also proposed raising a margin financier's maximum exposure to a single security from 20% to 30% of total funds.

The forum further proposed a forced-sale threshold of 40% equity, compared with 50% in the draft.

More flexibility in margin calls and forced selling

The latest BSEC proposal would give investors more room before their securities are forcibly sold.

If an investor's equity falls below 50%, the financier would issue prior notice. Securities could be liquidated without prior notice only if equity subsequently falls below 25%.

The draft rules had proposed a stricter mechanism, under which investors would have three trading days to restore required equity after a margin call. Securities could be liquidated without prior notice once equity fell below 50%.

The revised approach could reduce forced selling pressure during short-term market volatility.

Again, the draft had capped a margin financier's exposure to a single security at 20% of total funds. The CEO Forum has proposed raising the limit to 30%.

While the higher limit could increase financing for fundamentally strong and actively traded stocks, it could also raise concentration risks.

Restrictions on weaker stocks to remain

Despite the proposed relaxation, Z, N and G category companies, SME-listed securities, and stocks listed on the ATB and OTC platforms are expected to remain ineligible for margin financing.

Only A and B category main-board shares would qualify under the draft. The proposed margin financing ratio is 1:1 for general securities and 1:0.25 for listed life insurers.

Liquidity boost, but risks remain

The reforms aim to improve market liquidity by expanding access to margin financing and increasing financiers' lending capacity.

However, greater leverage could encourage speculative trading and amplify losses during market downturns through margin calls and forced selling.

The BSEC is expected to decide tomorrow on the P/B condition, P/E ceiling, minimum investment, forced-sale thresholds and single-security exposure limit.

Artificial intelligence (AI) could replace workers in some tasks while increasing demand for labour in other parts of the production process, according to Canadian economist Jean-Louis Arcand.

The finding could have important implications for labour-intensive economies such as Bangladesh, where many workers are engaged in relatively low-productivity activities.

Arcand, president of the Global Development Network, said firms are likely to adopt AI first in tasks that are the weakest links in a production process. By removing these bottlenecks, AI could improve productivity in other tasks and increase demand for workers.

“AI is potentially labour’s friend,” Arcand said at a public lecture organised by the South Asian Network on Economic Modeling (Sanem) at BRAC Centre yesterday.

The lecture, titled “These Aren’t the Droids You’re Looking For: Endogenous AI, O-Rings, and the Bottleneck Reallocation Theorem”, examined how firms decide where to use AI and how its adoption could affect workers.

Arcand’s research builds on economist Michael Kremer’s O-ring model of production, which says that production involves a series of interconnected tasks. A failure in one critical task can disrupt the entire production process.

He illustrated the idea with the 1986 Challenger space shuttle disaster, in which the failure of a relatively inexpensive O-ring contributed to the destruction of the spacecraft.

In his extended model, firms can use AI to reduce the risk of failure in specific tasks. This can affect employment in two different ways.

Within a particular task, AI can substitute for workers if it can perform the job more efficiently. Firms may then need fewer workers or less-skilled workers for that task.

At the same time, AI can complement workers in other tasks. When it removes a bottleneck, workers elsewhere in the production process can become more productive, increasing demand for their labour.

“When you introduce AI in a given task, it can crowd out labour, but it can increase demand for labour in other tasks because it is complementary to workers there,” he said.

Arcand said the impact of AI on employment would depend on the technology, the tasks involved and the cost of adoption.

“If someone asks you as an economist what will happen with AI in terms of labour, the correct answer is: it depends,” he said.

His model suggests that AI is likely to be adopted first in tasks where the risk of failure is relatively high. This means its use may not be concentrated only in advanced jobs or industries. Firms could first use it where it can remove major bottlenecks and improve productivity.

This could be relevant to service-sector activities such as coding and online customer service, where AI can reduce errors and improve performance.

The research also suggests that AI could help narrow wage differences. In the O-ring model, small differences in worker quality can lead to much larger differences in productivity and wages because the tasks are interconnected. Arcand said AI could reduce some of these differences by improving weaker tasks.

A calibration using US data estimated that the mechanism studied in the model could increase GDP by about 0.5 percent in the short term. However, Arcand said the gains were relatively modest, and the cost of adopting AI remained significant.

His analysis also suggests that lower-income economies could benefit more from AI than high-income economies.

However, countries such as Bangladesh will need to adopt AI strategically and use it to address genuine bottlenecks if they are to realise these potential gains, he said.

Arcand said more research was needed to understand the effects of AI adoption in developing economies. He also expressed interest in collecting data on AI use in Bangladesh.

“We can eventually collect data in Bangladesh on AI adoption,” he said.

The government has formed a 22-member high-level taskforce to overhaul regulatory and administrative procedures that create hurdles for businesses and investors, with a focus on simplifying approvals, licences and other government services.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury will head the National Taskforce on Deregulation and Business Facilitation, which includes relevant ministers, the prime minister's adviser on the Ministry of Finance, senior government officials and representatives of major business organisations.

The Cabinet Division issued a gazette notification forming the taskforce yesterday (9 August).

The taskforce will develop and oversee implementation of a reform roadmap for deregulation and business facilitation. It will review existing rules, regulations and procedures related to business and investment and identify unnecessary regulatory hurdles that can be removed or simplified.

It will also examine ways to introduce more efficient and investor-friendly systems and provide policy direction for simplifying procedures related to licences, approvals, clearances, taxes, customs, banking, capital markets, construction, environmental services and local government services.

The taskforce will provide policy guidance on introducing a Single Window, Service Level Agreements, deemed or automatic approvals and online tracking, among other digital services, to make government services faster and more predictable for businesses.

It will also work to resolve coordination problems among ministries and agencies and identify laws, rules, policies, circulars and administrative orders that need to be amended to facilitate business operations, investment and economic activities.

According to the gazette, the taskforce will work with the Invest Bangladesh Authority on a dedicated website and a grievance redress mechanism to monitor complaints, irregularities and delays faced by businesses and service users.

Implementation progress will be reviewed quarterly, and the taskforce will submit recommendations and undertake follow-up measures in line with the terms of reference set out in the gazette.

The taskforce includes the environment, industries and law ministers, as well as the prime minister's adviser on the Ministry of Finance and a member of the ICT taskforce.

Other members include the cabinet secretary, Bangladesh Bank governor, finance secretary, shipping secretary, National Board of Revenue chairman, Bangladesh Securities and Exchange Commission chairman and Registrar of Joint Stock Companies and Firms.

The presidents of the Federation of Bangladesh Chambers of Commerce and Industry, Foreign Investors' Chamber of Commerce and Industry, Dhaka Chamber of Commerce and Industry, Metropolitan Chamber of Commerce and Industry, Bangladesh Garment Manufacturers and Exporters Association and Bangladesh Knitwear Manufacturers and Exporters Association are also members.

The taskforce takes effect immediately and may co-opt additional members when necessary.

The initiative is part of the government's broader deregulation programme aimed at reducing unnecessary government procedures and delays in business and investment.

In the budget speech for fiscal 2026-27, the finance minister said deregulation would remove delays and unnecessary steps in government services and make them easier, faster, more transparent and more reliable for investors.

The government also announced plans to make online single-window services mandatory for approvals and licensing, complete the process from application to licence issuance within a maximum of seven days, and automate tax, customs and VAT systems.

27-member creative economy steering committee

The government has also formed a 27-member National Steering Committee on Creative Economy, headed by Finance and Planning Minister Amir Khosru Mahmud Chowdhury.

The committee includes representatives from the ministries of culture, industries, commerce, housing, planning, information and communication technology, tourism, women and children affairs, youth and sports, and information and broadcasting.

Representatives from the private sector and creative industries have also been included, including the Bangladesh Small and Cottage Industries Corporation, BRAC, HSBC Bangladesh, Bengal Foundation and Shanto-Mariam University of Creative Technology, as well as representatives from the fashion design and modelling sectors and other experts.

An additional secretary of the Finance Division will serve as the member-secretary.

The steering committee will approve sector-specific roadmaps for the creative economy, review their implementation, coordinate among relevant ministries and organisations, and provide policy direction.

It will also review the work of various sector-specific committees and assess implementation progress on a quarterly basis.

The government has constituted a 27-member National Steering Committee on creative economy to coordinate policy implementation and drive sector-specific growth across public and private entities.

The high-level panel is chaired by Finance and Planning Minister Amir Khosru Mahmud Chowdhury, according to a notification released on August 9.

Other members include key cabinet ministers, senior government secretaries, institutional representatives, and sector specialists, including fashion designer Bibi Russell, the notification adds.

Under its terms of reference, the committee will approve and review implementation progress of sector-specific roadmaps, provide inter-ministerial and inter-agency coordination and policy direction, and review the activities of various sector-specific committees.

It will assess progress quarterly, with secretarial support from the Finance Division.
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As defined by the United Nations Conference on Trade and Development (UNCTAD) in its Creative Economy Outlook 2024, the creative economy includes activities that generate and distribute goods and services rooted in creativity and intellectual capital, such as advertising, architecture, arts, design, music and film production, publishing and video games.

In Bangladesh, the sector has largely grown informally, driven by small craft entrepreneurs, independent filmmakers and boutique fashion brands, often with limited state support.

The steering committee’s formation follows calls from industry figures for a unified coordinating body for the sector.

At a virtual event organised by the Power and Participation Research Centre in July, film director and Chorki CEO Redoan Rony called for “a core strategy across all sectors, not just film or theatre, but crafts as well.” Bengal Foundation director general Luva Nahid Choudhury went further, calling a central commission essential for the sector’s sustainable development.

The move aligns with the government’s broader economic reform and deregulation package announced in the national budget, designed to diversify the economy, enhance business competitiveness, and support structural transformation as Bangladesh prepares for graduation from least developed country status.

Finance Minister Amir Khosru Mahmud Chowdhury, while delivering the fiscal year 2026–27 budget speech, announced that the government has set aside Tk 300 crore directly for creative economy development, with an additional Tk 500 crore expected from Bangladesh Bank’s corporate social responsibility funds.

“We have already prepared an action plan to implement coordinated activities involving the government, private sector and NGOs for the sustainable development of this sector,” he said at the time.

He separately mentioned plans for a dedicated 150-acre “theatre district” as part of the broader push.

UNCTAD data cited in the FY27 budget shows creative-sector contributions in developing countries ranging from 0.5 percent to 7.3 percent of GDP and employing between 0.5 percent and 12.5 percent of the workforce, depending on the country. Globally, UNCTAD estimates the creative economy at about 3 percent of world GDP, or roughly $2.25 trillion.

The government has set a goal, drawn from the ruling BNP’s election manifesto, to raise the creative economy’s contribution to GDP to 1.5 percent and generate 500,000 new jobs by 2035.

Khosru previously flagged a basic constraint the new committee will have to contend with: “there is little data available” on how much activities such as performing arts, design and stand-up comedy currently contribute to the economy.

The government has reduced the board size of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) from 80 to 48 members, tightened election rules and increased membership and affiliation fees through amendments to the Trade Organization Rules, 2025.

The changes were announced in a recent commerce ministry notification published on its website. Issued under Section 30 of the Trade Organizations Act, 2022, the notification introduces a series of reforms aimed at improving the governance of trade bodies.

The reforms come as FBCCI prepares to hold elections under a government-appointed administrator. After the fall of the Awami League government in August 2024, the commerce ministry dissolved the elected FBCCI board on September 11, 2024. Since then, the organisation has been run by government-appointed administrators.

On July 26, the ministry appointed Md Fazlul Hoque, managing director of Plummy Fashions Ltd and former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), as FBCCI administrator.

He has been tasked with completing the election process and handing over responsibilities to the newly elected board within 120 days.

Under the revised rules, the new FBCCI board will consist of the president, one senior vice-president, four vice-presidents, 30 elected directors from chambers and associations, 10 nominated directors, and one representative each from the Women’s Chamber and the Women’s Association.

The executive committee’s term has been fixed at 24 months, with an extension to 36 months allowed only in exceptional cases.

Former FBCCI president Mir Nasir Hossain welcomed the reforms, saying the revised structure was better than the previous rules because it significantly reduced the number of nominated directors.

“At one point, the number of nominated directors had risen to 80. It was ridiculous,” he said. “The number has now been reduced to a more reasonable level.”

He said the revised rules allow five nominated directors each from the chamber and association groups. The nominees will be selected from organisations listed in the constitution based on their contribution to the national economy.

Anwar-ul Alam Chowdhury Parvez, president of Bangladesh Chamber of Industries (BCI), said the FBCCI board should ideally have no more than 40 to 42 members to ensure effective participation.

“When the board is too large, meaningful participation becomes difficult,” he said.

The revised rules also seek to improve election transparency by abolishing proxy voting, introducing one vote for each business entity with a valid Tax Identification Number (TIN), and requiring candidates to submit tax compliance documents within seven days of the publication of the voter list.

Anwar-ul Alam said the apex trade body should have balanced representation from all major sectors, including cottage and small industries, heavy industries, exporters, healthcare and services, so the government can receive informed policy recommendations.

He also said many successful entrepreneurs avoid contesting elections because serving in trade bodies requires significant time away from their businesses.

“If experienced entrepreneurs come forward, the government will receive better policy support from the business community,” he added.

He called for clear eligibility criteria to ensure capable leadership and broad representation from different sectors.

The revised rules also raise membership and affiliation fees.

Category-A organisations will charge a one-time admission fee of Tk 15,000 for both general and associate members, while Category-B organisations will charge Tk 10,000. Annual membership fees have been set at Tk 5,000 for Category-A organisations and Tk 3,000 for Category-B organisations.

One-time FBCCI affiliation fees will range from Tk 200,000 to Tk 500,000, while annual affiliation fees will be between Tk 60,000 and Tk 100,000. General Council members will also have to pay a one-time registration fee of Tk 20,000.
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Rizwan-Ur-Rahman, managing director of ETBL Securities & Exchange Ltd and former president of the Dhaka Chamber of Commerce and Industry (DCCI), said the higher membership fees were reasonable as they had remained unchanged for years despite rising operating costs.

“These fees go to the chambers and associations, not the government,” he said, adding that each organisation would continue to set its own membership fees through its governing process.

He said only organisations that fail to provide value to their members are likely to face resistance to the higher fees.

Asif Ibrahim, vice chairman of Newage Group, said the trade organisation reforms should go beyond administrative changes and help strengthen institutional governance and improve private sector competitiveness.

He welcomed measures such as direct voting, term limits and greater accountability, but said reducing the size of boards was one of the most important reforms.

According to Asif, smaller boards would improve efficiency, strengthen accountability and allow faster decision-making.

He also stressed the need for a predictable regulatory environment and warned against unnecessary government intervention.

Trade bodies, he said, should have greater freedom to contribute to export diversification, attract investment and support economic growth.

He added that the success of the reforms would depend on maintaining the right balance between regulatory oversight and institutional autonomy.

China is singlehandedly doing the heavy lifting of cutting crude oil demand in Asia to compensate for reduced shipments from the Middle East as a result of the Iran war.

The world’s biggest oil importer reported arrivals of 8.41 million barrels per day (bpd) in July, up from the near decade low of 7.12 million in June but still 24.3 percent below July last year.

If June and July imports are combined, it gives an average of 7.78 million bpd for the past two months. This is 4.21 million bpd below the average of 11.99 million bpd in the three months to the end of February. The United States and Israel attacked Iran on February 28, with the conflict escalating to the point where the Strait of Hormuz was effectively closed,

cutting off a waterway through which about 20 percent of the world’s crude oil and refined products moved prior to the start of the war.

Two of the Middle East’s crude exporters, Saudi Arabia and the United Arab Emirates, have managed to boost shipments from ports outside the Strait of Hormuz, but flows from the region have still been knocked lower by around 5 million bpd. The bulk of crude exports from the Middle East head to Asia, the top-importing region, which has seen crude arrivals drop substantially.

Asia’s total oil imports in July were 22.82 million bpd, according to data compiled by commodity analysts Kpler.

While this was up from April’s 18.77 million bpd, which was the lowest since November 2015,

July’s imports were still down about 4 million bpd from the average of 26.89 million bpd in the three months prior to the start of the Iran conflict. What the data show is that the loss of imports by Asia is about equal to the drop in imports by China for the past two months.

PRICE MOVES

Part of China’s reduced imports will be because of price volatility, with benchmark Brent futures hitting a four-year high of $126.41 a barrel on April 30, a time when June and July cargoes would have been arranged.

China has a track record of cutting back on imports when prices rise, but the scale of the drop has been unprecedented.

There is little doubt China has the ability to sustain lower imports for an extended period, given its vast crude stockpile, which is estimated by analysts to be at least 1.2 billion barrels strong and may even be substantially higher.

The question for the market is how long is China prepared to be the balancing force for crude oil in Asia?

China’s imports are likely to stage something of a mild recovery in August, as cargoes that managed to exit the Strait of Hormuz during the brief ceasefire between the United States and Iran are delivered.

China’s imports from the Middle East are estimated by Kpler at 2.71 million bpd for August, up from 2.43 million bpd in July and the 1.42 million bpd in June, which was the lowest in Kpler records going back to 2013.

Total crude imports for August are estimated at 5.97 million bpd, but more cargoes are likely to be assessed as the month progresses, and it’s likely that August imports will exceed those for July.

September imports are likely to be more revealing, as flows from the Middle East become more constrained

given the return to sharply lower shipments through the Strait of Hormuz after the breakdown of the ceasefire deal between US President Donald Trump and Tehran.

Even if the latest moves to restore vessel movements through the strait prove successful, it will take several weeks for exports to ramp up and several more for those tankers to reach Chinese ports.

This means China’s refiners can keep suppressing their appetite for imported crude and dip into inventories, or they can bid for cargoes from exporters outside the Middle East.