Although the Bangladesh Petroleum Corporation (BPC) raked in profits almost every year in the past decade, four months of the US-Israel war on Iran have upended the balance sheet of the government agency that imports, distributes and markets oil and petroleum products.

Just in the four months to June, the state-run fuel importer incurred a loss of Tk 18,699 crore, as it bought petroleum products at higher prices and sold them at lower rates. To cover the gap, the corporation has already drawn money parked with banks and spent funds earmarked for development projects.

Now the cash-strapped corporation estimates that it needs around Tk 20,000 crore as working capital to maintain the country’s mandatory 60-day fuel stock. Of that, it has asked the government for Tk 18,699 crore.

Citing the rapid depletion of its cash reserves, BPC said continued losses could affect its ability to open letters of credit (LCs) for future fuel imports, according to minutes of a BPC board meeting in July.

The scale of the cash squeeze is striking because BPC had built up a decade-long record of profits. It earned a cumulative Tk 48,618 crore in net profit from FY2015-16 to FY2024-25, making profits in nine of those 10 years.

Yet when the latest energy shock caused by the Middle East war struck, the corporation had no “General Reserve Fund” to fall back on.

BPC says no such fund has been created since its inception, despite provisions for one in the Bangladesh Petroleum Corporation Act. Now, after suffering an unprecedented loss, it has proposed to create a Tk 5,000 crore General Reserve Fund.

However, the proposal has not been approved. The board referred it to the internal Finance and Audit Committee for examination before bringing it back for a decision, according to the July meeting minutes.

The same meeting considered another proposal to use BPC’s existing Tk 1,579.71 crore Capital Reserve to meet fuel-import LCs. After not being approved at the meeting, that proposal was also sent to the Finance and Audit Committee for review.

DEV FUNDS SPENT, CAPITAL RESERVE UNDER PRESSURE

The cash shortage has already forced BPC to tap money set aside for development.

When the war began on February 28, the corporation had Tk 36,964 crore deposited with banks. By the end of June, that had fallen to Tk 18,524 crore, according to documents.

The deposits were held under various funds, including money earmarked for the proposed expansion of Eastern Refinery, show the papers.

BPC withdrew Tk 9,750 crore from the ERL Unit-2 project, Tk 3,000 crore from other development projects and Tk 2,250 crore from miscellaneous income to meet its working-capital needs. It also mobilised another Tk 640 crore from idle balances held in scheduled banks.

In all, BPC diverted or mobilised Tk 15,640 crore to keep its operations funded.

Now, BPC is considering its existing Tk 1,579.71 crore “Capital Reserve” as another source of working capital.

The reserve is invested in three-month fixed deposits with four state-owned banks. BPC proposed encashing the deposits upon maturity and using the money to meet working-capital requirements for fuel-import LCs.

The board, however, did not approve the proposal. It observed that the proposal required examination in light of international accounting standards and referred it to the Finance and Audit Committee before any final decision.

THE PRICE SHOCK

The sudden surge in international fuel prices wiped out more than four times BPC’s entire FY2024-25 profit in less than four months -- March, April, May and June.

According to the board documents, BPC’s loss reached Tk 18,691 crore through June 23. The monthly losses were Tk 2,248 crore in March, Tk 7,866 crore in April, Tk 2,621 crore in May and Tk 5,955 crore in June.

A subsequent calculation put the loss at Tk 18,699 crore.

April alone accounted for nearly 42 percent of the four-month loss, as the government kept domestic fuel prices unchanged despite the rise in international prices.

Although the government later raised fuel prices, they remained below the levels needed to reflect the global price shock, BPC says.

Muinul Islam, former economics professor at Chattogram University, said the sharp increase in Bangladesh’s fuel import bill was primarily driven by higher global oil prices rather than a significant rise in import volumes.

“Bangladesh is paying the price for a war it is not part of,” he told The Daily Star.

He said geopolitical conflicts can rapidly increase the import burden of middle and low-income countries, exposing their economic vulnerabilities.

YEARS OF PROFITS, BUT NO GENERAL RESERVE

The absence of a General Reserve Fund has now emerged as one of the biggest questions raised by the crisis.

BPC says no General Reserve Fund was created since its inception, although the Bangladesh Petroleum Corporation Act contain provisions for one.

According to it, the corporation may establish a Reserve Fund, subject to a ceiling determined by the government, and that the board may set aside part of its profits at the end of each year for the fund.

The Act also says the fund can be used for contingencies, liabilities, repair or replacement of equipment and property, and acquisition of new property.

From FY16 to FY25, BPC earned net profits in nine of the 10 years, with only FY22 recording a loss amid the global fuel-price surge following Russia’s invasion of Ukraine. Its net profit over the 10-year period totalled Tk 48,618 crore.

During that period, BPC paid Tk 1,150 crore in dividends to the government, according to the papers. Between FY20 and FY23, the government also took Tk 11,500 crore from BPC surplus funds, documents show.

Its board paper says comparable national oil companies maintain general reserves and argues that such a fund would help BPC deal with emergencies and maintain energy security.

It has therefore proposed an initial Tk 5,000 crore General Reserve Fund, to be formed from retained earnings or accumulated funds reflected in its FY2024-25 financial statements.

It has also proposed transferring Tk 500 crore or 20 percent of annual profit, whichever is lower, to the fund from FY2025-26 onwards.

The board decided that the proposal should first be examined by the Finance and Audit Committee before being brought back for a decision.

Bangladesh’s trade deficit widened to a three-year high in fiscal year 2025-26, as import bills climbed even as export earnings stagnated, according to the latest Bangladesh Bank data.

The deficit stood at $27.28 billion for the year, a jump of 34 percent from FY25, said the central bank.

The country exported $43.85 billion worth of goods in FY26, almost unchanged from the previous year. Imports, meanwhile, rose 10.5 percent year-on-year to $71.14 billion, the largest annual import gain since FY22.

“Definitely, it indicates weak external performance, and global factors are more responsible for this than domestic ones,” said Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD).

He said imports grew mainly for inflationary reasons, particularly higher petroleum prices, while tariffs imposed by the Donald Trump administration, rising inflation in the West, and war-related supply disruptions have dampened orders from international buyers.

“So, this widening trade imbalance reflects the volatility stemming from global economic uncertainty,” he said.

Abdur Razzaque, chairman of the Research and Policy Integration for Development (RAPID), cautioned against reading the higher import bill as a sign of stronger investment or domestic activity.

“Bangladesh Bank’s import data show that capital-machinery imports have remained weak, while imports of industrial raw materials have also been subdued. This suggests that the increase in aggregate imports has not yet been accompanied by a broad-based revival in productive investment,” he said.

The RAPID chairman, however, noted that some recovery in imports is not necessarily a bad sign after years of import compression amid persistent inflation.

According to him, greater availability of food, fuel, essential consumer goods and production inputs can help ease domestic supply constraints, improve competition and reduce price pressures.

The more serious concern, he said, is what Bangladesh is importing, and what is happening to investment and exports at the same time. “If imports recover while capital machinery remains depressed and exports stagnate, the wider trade deficit is generating less additional productive capacity than one would normally hope to see.”

CPD’s Moazzem echoed the concern, saying, “Given that private credit growth stood at a historic low, it cannot be said that domestic demand and investment have spiked.”

For a developing economy, Razzaque said, a larger trade deficit can in fact be healthy when it reflects imports of machinery, technology and other inputs that expand future productive and export capacity.

He said, “What is unusual in the present situation is the combination of a sizeable increase in total imports with continued weakness in investment-oriented imports and virtually no export growth.

“This suggests that Bangladesh is experiencing some normalisation of domestic import demand, but not yet a strong investment-led recovery.”

Despite the widening deficit, Razzaque said it has not triggered an immediate balance of payments (BoP) crisis.

He noted that remittances rose to a record $35.6 billion in FY26, providing what he called an exceptionally large cushion that helped contain the current-account deficit to around $1.6 billion.

The overall BoP recorded a surplus of $6.6 billion for the year.

“This creates an interesting asymmetry in the economy: external-sector stability has improved considerably, but the improvement has not yet been matched by a comparable recovery in investment, industrial activity and export dynamism,” Razzaque said.

“Remittances and stronger reserves are giving Bangladesh valuable macroeconomic space. The challenge now is to convert that stability into productive investment and export growth,” he added.

Meanwhile, CPD’s Moazzem called on the government to focus on alternative energy sources such as renewables to reduce imports as he fears the volatility in the energy market could prevail in the coming months.

The Dhaka Stock Exchange (DSE) extended its losing streak for a second consecutive session today (10 August), as panic over the potential liquidation of several non-bank financial institutions (NBFIs) triggered a broad-based sell-off.

The benchmark DSEX index fell 38 points, or 0.65%, to settle at 5,822. Bearish sentiment persisted throughout the session, with nearly 73% of traded issues closing lower, as investors remained cautious amid a lack of strong positive catalysts.

The blue-chip DS30 index also faced significant pressure, falling 14 points to settle at 2,177. The day's trading reflected a sharp decline in market participation, as total turnover on the DSE dropped by 16% to Tk964 crore, compared to the final session of the previous week.

This contraction in trading volume suggests that while sellers were active, buyers remained largely on the sidelines, waiting for clearer market directions, according to the market insiders.

The overall market valuation suffered a heavy blow, with the market capitalisation of the Dhaka bourse declining by approximately Tk4,800 crore in a single day.

According to EBL Securities' daily market review, the benchmark index remained in negative territory from the opening, weighed down by persistent selling pressure as the previous session's profit-taking continued. Although some interest emerged in small-cap and momentum-driven stocks, it was insufficient to offset heavy selling in large-cap and fundamentally weak sectors.

A managing director of a brokerage firm said the primary driver of the day's downturn was the news that Bangladesh Bank has reportedly initiated a process to liquidate chronically non-performing NBFIs.

Market sources said the central bank is initially targeting four institutions—International Leasing, Fareast Finance, FAS Finance and Aviva Finance—with plans to address other weak entities later. The news sent shockwaves through the NBFI sector, which led the losers' list.

Peoples Leasing shed 8.33%, while GSP Finance, Fareast Finance, and International Leasing all recorded losses of 8% or more.

Sectoral data showed that the textile sector dominated the turnover chart, accounting for 21.7% of the total volume, followed by the general insurance sector at 16.1% and the engineering sector at 9.7%.

Performance across most segments was negative, with mutual funds facing the steepest correction of 3.4%, followed by financial institutions and IT.

Conversely, the paper and printing, miscellaneous, and jute sectors managed to post marginal positive returns.

In the individual scrip segment, Nitol Insurance emerged as the top gainer with a 9.83% price hike, followed by Sharp Industries, Tung Hai Knitting, and Hamid Fabrics.

The bearish sentiment was also reflected at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) fell 59 points to close at 9,521, while the broad CASPI index plunged 106 points to 15,618. Despite the decline, turnover at the port city bourse rose marginally by 5% to Tk31 crore.

Bangladesh's stock market opened the week on a bearish note on Sunday, with both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) recording sharp falls in their key indices as share prices declined for most listed companies.

The DSE's benchmark index, DSEX, fell 38 points during the day's trading. The Shariah-based index, DSES, dropped 6 points, while the blue-chip index, DS30, lost 14 points.

Of the 392 companies traded on the DSE, 286 saw their share prices fall, 79 posted gains, and 27 remained unchanged.

Overall turnover on the DSE declined, with shares and units worth Tk 964 crore changing hands during the day, down from Tk 1,147 crore in the previous session.

Nitol Insurance PLC topped the DSE gainers' list, rising nearly 10 per cent, while Peoples Leasing and Financial Services Limited was the worst performer, losing more than 8 per cent.

The CSE also witnessed a steep fall, with its overall index, CASPI, shedding 106 points.

Prices fell for the majority of companies on the CSE, with 139 issues declining against 52 advancing and 24 remaining unchanged.

Turnover on the CSE, however, edged up slightly, with shares and units worth Tk 31 crore traded during the day, compared to Tk 29 crore in the previous session.

Bangladesh Lamps PLC led the CSE gainers, rising close to 10 per cent, while Envoy Textiles Limited posted the sharpest decline, losing 10 per cent.

Mutual funds are gaining renewed investor attention, as regulatory reforms aimed at strengthening governance, safeguarding fund assets, and improving accountability appear to be restoring confidence in the sector.

Market participants say the Bangladesh Securities and Exchange Commission's (BSEC) recent measures have addressed some of the key concerns that kept discouraging investors for long from investing in mutual funds, particularly over security and custody of fund assets.

The DSEX, the benchmark index of the Dhaka Stock Exchange, increased 3.7 per cent over the six weeks through August 6 while mutual funds’ sectoral gain is above 30 per cent during the same period. Many mutual funds advanced more than 20 per cent in the secondary market in the six weeks’ time.

The sharp divergence indicates that investors are reassessing mutual funds as regulatory changes improve governance and reduce concerns over the safety of fund assets.

Under the Mutual Fund Rules, 2025, trustees have been recognised as legal owners of assets in fund portfolios, while unitholders remain beneficial owners. At the same time, custody of the assets and money has been placed more firmly under the custodians, separating asset management from direct control over cash and securities.

The arrangement is designed to prevent asset managers from directly moving or withdrawing cash and assets. Asset managers are responsible primarily for investment decisions, while custodians would execute payments for securities purchases and receive proceeds from sales.

Even management fees claimed by asset managers are subject to verification by custodians before payments, according to BSEC spokesperson Md. Abul Kalam.

“This has laid a stronger foundation of trust because asset managers can no longer take away mutual fund assets,” he said.

The regulator has also been working to address the long-standing problems relating to closed-end mutual funds, many of which have traded at substantial discounts to their net asset values (NAVs).

The BSEC has moved to facilitate the conversion of closed-end mutual funds into open-end structures, which will give investors a better opportunity to realise the value of their holdings. Unlike closed-end funds, open-ended funds provide investors with a mechanism to surrender units at NAV.

The securities commission has also taken steps against poorly performing asset managers, including cancellation of some management appointments, in efforts to improve the quality of fund management.

These measures appear to be gaining traction in the market, with mutual funds significantly outperforming the broader equity market in recent weeks.

The stronger performance also comes at a time when the broader market has shown some volatility, suggesting that the recent mutual fund rally might be driven not only by overall market sentiment but also by sector-specific expectations surrounding reforms.

The government has mapped out five strategic priorities for its ICT and telecommunications sectors, focusing on areas such as tax reform and upgraded connectivity, Rehan Asif Asad, adviser to the prime minister on post, telecommunications, ICT, science and technology, said yesterday.

The priorities also include digital public infrastructure, AI-focused skills development and electronics manufacturing, he said at a policy dialogue, titled “Accelerating Bangladesh’s Digital Future: Policy Priorities for Innovation, Investment & ICT-Led Growth”, organised by the American Chamber of Commerce in Bangladesh (AmCham), at The Westin Dhaka.

The adviser said the government would pursue consistent, forward-looking policies for the sector under a five-year tax framework.

He highlighted that Bangladesh’s mobile industry currently shoulders an effective tax burden of 51 percent to 56 percent, well above the global average of 22 percent to 27 percent. He added that removing the SIM tax forms a key component of ongoing tax relief efforts.

Fixing connectivity remains a major priority. While Bangladesh ranks seventh globally in total mobile subscribers, the network quality severely lags international standards. To modernise state services, the government plans to deploy a “One Citizen, One ID, One Digital Wallet” system modelled on Estonia’s open-source X-Road platform. Offered free to citizens, every digital ID will link directly with bank accounts and the National Board of Revenue.

Fourthly, the administration aims to create an AI-ready workforce. Programmes will upskill the country’s 23,000 to 30,000 annual science and engineering graduates in artificial intelligence, cybersecurity, and data science, while foundational modules will be introduced into school curricula.

Finally, the government plans to offer electronics manufacturers incentives similar to those that powered the ready-made garment sector.

Citing international benchmarks, the adviser noted how Vietnam expanded its consumer electronics exports from $1 billion to $217 billion within a decade. Citing UN and International Telecommunication Union data, he added that every 10 percent increase in broadband penetration boosts national GDP by 1 percent.

Responding to the plans, AmCham President Syed Mohammad Kamal welcomed the ratification of the Personal Data Protection Act.

However, he urged officials to clarify new digital permanent establishment rules for platforms exceeding 100,000 subscribers, reconsider raising the internet service provider turnover tax from 1 percent to 1.5 percent of gross receipts, and ease inbound and outbound international payments for technology companies and startups.

LightCastle Partners, in partnership with Meta, has launched the Meta Small Business Growth Academy in Bangladesh to help small and medium-sized businesses improve their digital capabilities and expand into new markets.

The programme will provide entrepreneurs with hands-on training on Meta's digital platforms and AI-powered tools, focusing on areas such as digital marketing, online presence, customer engagement and business expansion.

Through workshops and other activities, LightCastle will help local entrepreneurs use digital platforms to reach new customers, strengthen their online businesses and identify new growth opportunities.

The initiative comes as Bangladesh's small and medium-sized business sector increasingly adopts digital technologies to reach customers and expand operations. Entrepreneurs in sectors including ready-made garments, agriculture and other small businesses are among those expected to benefit from the training.

Tehara Punchihewa, associate public policy manager at Meta, said the programme would help entrepreneurs develop practical skills to use AI-enabled tools and compete more effectively in the digital economy.

"At Meta, we see every day how small businesses use our AI-enabled tools to reach customers and grow," Punchihewa said.

Bijon Islam, CEO of LightCastle Partners, said the initiative would support grassroots entrepreneurship and contribute to inclusive economic growth.

The Small Business Growth Academy will be implemented in 12 countries across the Asia-Pacific region, with an initial target of supporting more than 10,000 businesses.

Training will be tailored to local market needs and will cover strengthening online presence, improving digital marketing, increasing the use of AI-powered tools, enhancing customer engagement and identifying opportunities for business expansion.

The Bangladesh programme is part of Meta's broader Asia-Pacific initiative, under which the company will work with governments, industry partners and local business organisations to help entrepreneurs develop skills needed to participate in the digital economy.

China’s consumer and factory prices grew slower than expected last month, official data showed Sunday, as the world’s second-largest economy confronts persistent deflationary pressure.

The consumer price index, a key gauge of inflation, eased to 0.5 percent year-on-year, according to the National Bureau of Statistics (NBS).

That was lower than the 0.8 percent forecast by a Bloomberg survey and the slowest rise since January.

Sluggish domestic consumption has vexed Beijing for several years, threatening to weigh down national growth even as exports and certain high-tech sectors boom.

Many economists contend that China must shift towards a growth model driven more by household spending than the traditional engines of past decades, including real estate and infrastructure investment.

A gauge of China’s factory-gate prices, which measures the cost of goods at the first point of sale, also grew at a slower pace last month, NBS data showed Sunday. The producer price index increased 3.5 percent year-on-year in July, slowing from 4.1 percent in June and lower than the 3.8 percent forecast by Bloomberg.

“Economic momentum softened in (the second quarter)” of 2026, wrote Zhiwei Zhang, President and Chief Economist of Pinpoint Asset Management, in a note on Sunday’s data.

A meeting of the ruling Communist Party’s high-ranking Politburo in late July “signaled stronger fiscal spending as the policy response”, wrote Zhang, adding that a couple of months are needed to assess how it may boost domestic demand.

The latest figures come two days after trade data for July showed exports and imports soaring, boosted by increased overseas demand for AI-related tech products.

The surge in exports this year has helped China’s vast manufacturing sector through the prolonged slump in domestic spending.

The Bangladesh Bank has allowed tour operators that are members of the Tour Operators Association of Bangladesh (Toab) to collect payments in taka from resident Bangladeshis for overseas tour packages and remit the corresponding foreign currency to service providers abroad.

In a circular issued today (9 August), the central bank said the facility would allow eligible tour operators to collect payments in taka and settle payments with overseas service providers through authorised dealer (AD) banks.

Under the new arrangement, eligible tour operators must have agreements with overseas tour operators, hotels or destination management companies. AD banks may remit foreign currency against tour packages covering accommodation, transportation and other destination-related services.

The facility allows remittances of up to $3,000 per traveller per calendar year, outside the regular annual travel quota.

Tour operators must maintain passport-based records and obtain declarations from travellers confirming that they have not exceeded the annual limit through other tour operators.

Remittances exceeding $3,000 may also be permitted when package payments are collected in foreign currency through international cards. AD banks may provide acquiring services for such card transactions.

Bangladesh Bank has instructed AD banks to report such remittances to the central bank within seven days for post-facto scrutiny.

Business insiders welcomed the policy support, saying the decision would facilitate outbound tourism and help promote the growth and formal development of Bangladesh's tour business.

Bangladesh's Purchasing Managers' Index rose sharply in July, driven by the strongest manufacturing performance in months and the highest export earnings in a year, a business survey showed today (9 August).

The composite PMI, compiled by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh, jumped 4.9 points to 57.8 in July from 52.9 in June, well above the 50-point threshold separating growth from contraction.

Manufacturing led the recovery, surging 16.6 points to 65.4, its strongest reading in the survey period, with expansion recorded across new orders, exports, output, employment, imports and supplier deliveries simultaneously.

"The July PMI signals broad-based strengthening of Bangladesh's economy, led by a sharp manufacturing rebound and continued expansion in agriculture and services," said M Masrur Reaz, chairman and CEO of Policy Exchange Bangladesh. "The manufacturing recovery coincided with the highest monthly export earnings in 12 months."

The services sector expanded for a 22nd consecutive month, rising 1.4 points to 56.0, while agriculture recorded its 11th straight month of expansion, though growth moderated by 9.6 points to 55.2.

Construction remained in contraction for a second consecutive month, with its PMI standing at 49.3. The reading, however, improved by 9.1 points from June's 40.2, which was its weakest point in the survey period.

Masrur attributed the improvement partly to "improved foreign-exchange conditions" and businesses' expectations of a more supportive environment following the FY2026-27 budget, which included deregulation measures announced last month.

The Future Business Index showed strong expansion across all four sectors, indicating that purchasing managers expect business conditions to improve further in the coming months.

Order backlogs, however, remained in contraction across multiple sectors, suggesting that the pipeline of future work remains thin despite the near-term improvement.

Bangladesh is the world's second-largest garment exporter. Its economy has faced four years of inflation above 9% and historically low private credit growth, making the July PMI improvement a closely watched indicator of whether an economic recovery is taking hold.

The PMI survey was developed with support from the UK government and technical assistance from the Singapore Institute of Purchasing and Materials Management.

Islami Insurance Bangladesh Limited's earnings per share (EPS) rose 30.38% year-on-year in the first half of 2026, while its operating cash flow also improved significantly.

According to unaudited financial statements disclosed on the Dhaka Stock Exchange (DSE), the insurer's net profit increased to Tk8.48 crore in January-June 2026, from Tk6.50 crore a year earlier. EPS rose to Tk2.06 from Tk1.58

In the April-June quarter, Islami Insurance posted a net profit of Tk4.28 crore, compared with Tk3.21 crore in the same quarter of the previous year

NOCFPS surged to Tk2.72 in the first six months, from Tk1.06 in the same period last year.

The company's net asset value (NAV) per share stood at Tk25.75 as of 30 June, up from Tk23.62 at the end of December 2025, an increase of Tk2.13, or about 9%.

Following the earnings disclosure, the company's share price fell 2.90% today (9 August) to close at Tk63.70 on the DSE.

The stock had surged around 86% between March and June, despite the company saying it had no undisclosed price-sensitive information (PSI) behind the unusual price movement.

Meanwhile, Islami Insurance is facing a regulatory investigation over corporate governance allegations made by six former sponsor directors against Chairman Mohammad Sayeed Khokon.

The former directors alleged that Khokon has been running the company from an undisclosed location while retaining financial and administrative authority.

They also alleged that after he became chairman in 2012, the six former sponsor directors were removed from the board without legitimate reasons and replaced by his wife, two daughters, sister-in-law and two companies owned by him.

According to the complainants, family-affiliated directors now number 10 and collectively control around 30.35% of the company's paid-up capital.

They alleged that the family-centric ownership and management structure violates provisions of the Companies Act, Insurance Act and securities laws.

The Bangladesh Securities and Exchange Commission (BSEC) has formed a four-member committee to investigate the allegations, review relevant documents and gather evidence before submitting a report.

The allegations have not been established by the regulator, and the investigation is ongoing.

The Bangladesh Energy Regulatory Commission (BERC) has adjusted the price of Jet A-1 aviation fuel for domestic flights, fixing the new price at Tk159.52 per litre from Tk130.99 - an increase of nearly 23%.

For international flights, the price has been set at $1.0358 per litre, up from $0.8556.

The commission fixed the prices after reviewing the average published Platts rate for Jet A-1 during 5 July to 4 Aug 2026, the US dollar exchange rate used by Bangladesh Petroleum Corporation (BPC) for letter of credit settlements and changes in diesel prices.

For domestic flights, the Jet A-1 price has been set at Tk159.52 per litre, inclusive of customs duties and VAT.

For international flights operated by both domestic and foreign airlines, the price has been fixed at US$1.0358 per litre, excluding customs duties and VAT.

The decision was taken following a hearing held at the commission on Sunday on the relevant report.

BERC said it adjusted the Jet A-1 price after a detailed review of the relevant market and cost factors.

The revised rate will remain applicable for August 2026, unless subsequently adjusted by the commission.

Bangladesh's rapidly growing demand for imported soybeans has emerged as a key opportunity for US soybean farmers and exporters, as the country's poultry, aquaculture and feed industries continue to expand.

The opportunity was prominently highlighted at the two-day Soy Connext 2026, the flagship international conference of the US Soybean Export Council (USSEC), which concluded in Chicago on Friday (7 August).

More than 850 participants from 67 countries, including around 400 international buyers and 12 representatives from Bangladesh's soybean value chain, joined the 6–7 August event. The Bangladeshi delegation included representatives from ACI Godrej, Delta Agro Industries, Asta Feed, Mahbub Agro, KGS Group, Akij Feed and Nahar Agro, among others.

The delegation held a series of meetings with US soybean farmers, exporters and suppliers and visited soybean farms and related facilities, giving Bangladeshi businesses a firsthand look at US production, quality control, sustainability and supply-chain management.

For USSEC, Bangladesh is no longer a peripheral market in South Asia.

The US has rapidly emerged as Bangladesh's largest soybean supplier. In the first eight months of marketing year 2025/26, the US accounted for 84% of Bangladesh's soybean imports, up from 48% a year earlier, according to USDA data. Bangladesh produces only around 7% of its annual soybean requirement, leaving the country highly dependent on imports.

USSEC said Bangladesh had already purchased 1.13 million tonnes of US soybeans in MY2025/26 through 5 February 2026. The organisation has been working with Bangladesh's soybean and animal-protein industries for around three decades through technical training, trade missions and industry support.

Bangladesh is preparing to launch formal negotiations for a free trade agreement with the European Union while pressing ahead with its bid to join the Regional Comprehensive Economic Partnership (RCEP), as the country steps up its efforts.

The dual push marks a significant step for the country. With chief negotiators appointed and diplomatic groundwork laid, Dhaka is positioning itself to cement formal trade ties with two of the world’s most powerful economic blocs.

Formal steps for the EU trade negotiations are expected to begin next month. Commerce Minister Khandakar Abdul Muktadir confirmed that an initial exchange of formal letters with the EU has already taken place, agreeing to enter negotiations for a free trade agreement (FTA).

“We are hopeful that we will get the date of engagement for the negotiation with the EU after August,” Muktadir told The Daily Star.

An additional secretary from the Ministry of Commerce has been named Bangladesh’s chief negotiator, while the EU has similarly appointed its lead trade representative.

The EU remains Bangladesh’s largest export destination. According to European Commission data, Bangladesh was the EU’s 35th-largest trading partner in 2025, accounting for 0.5 percent of total EU trade in goods. Conversely, the EU was Bangladesh’s largest trading partner, capturing a 21.5 percent share of the country’s global merchandise trade.

Bilateral trade in goods reached €23.3 billion in 2025, leaving the EU with a €19.1 billion trade deficit in Bangladesh’s favour. EU imports from Bangladesh are overwhelmingly dominated by textiles, which comprised nearly 94 percent of total shipments in 2025.

Furthermore, Bangladesh is the largest beneficiary of the EU’s Everything But Arms (EBA) arrangement, with €19 billion worth of exports benefiting from these duty-free preferences in 2024 at a 96 percent utilisation rate.

EU foreign direct investment stock in Bangladesh stood at €2.5 billion in 2024, while Bangladesh’s FDI in the EU totalled €86 million.

Parallel to the European talks, Commerce Secretary Md Ataur Rahman Khan is currently visiting Australia and New Zealand to rally support for Bangladesh’s accession to RCEP.

The 15-nation free trade agreement in the Asia-Pacific region -- comprising the ten ASEAN members alongside Australia, China, Japan, New Zealand, and South Korea -- encompasses 30 percent of global GDP and represents a $32 trillion economic zone.

Muktadir expressed confidence in Bangladesh’s prospects for joining RCEP, noting that the country has satisfied foundational criteria, such as submitting formal applications, and holds an advantage due to existing bilateral trade pacts with members Japan and South Korea.

However, the minister did not say exactly when Bangladesh may gain RCEP accession.

Bangladesh and China have stressed the need for stronger technology transfer, knowledge sharing and investment in innovation to help Bangladesh’s ceramics industry overcome rising energy costs and improve its competitiveness in global markets.

Industry leaders and experts made the observations at the China-Bangladesh Ceramics Annual Conference 2026, jointly organised by the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) and Foshan Uniceramics Expo in Dhaka on August 8.

Speaking at the conference, Moynul Islam, president of BCMEA, called for greater adoption of Chinese technologies and innovative solutions to address the industry’s energy challenges.

He particularly highlighted technologies such as electric kilns and hydrogen-enriched heating systems.

Irfan Uddin, general secretary of BCMEA, said meaningful collaboration, knowledge exchange and innovation were essential for building a stronger and more competitive industry.

“No industry can grow alone” in today’s interconnected world, he said, stressing the importance of partnerships in driving technological progress.

Eva Chan, overseas business department manager of Uniceramics China, said Bangladesh’s ceramics market has significant growth potential, noting that the country’s per capita ceramic consumption is about one square metre, compared with 6.9 square metres at China’s peak.

She urged Bangladeshi manufacturers to move away from price-based competition and focus more on quality, design and branding to capture both domestic and international markets.

Mohammad Khorshed Alam, president of the Bangladesh China Chamber of Commerce and Industry, said stronger cooperation between businesses of the two countries could create new opportunities in local and international markets.

He also stressed the importance of technology transfer and skills development.

Md Mamunur Rashid FCMA, senior vice president of BCMEA, said the ceramics industry had emerged as one of Bangladesh’s promising manufacturing sectors.

Bangladesh now produces tableware, tiles and sanitaryware for export to Europe, North America and the Middle East, he said.

Abdul Hakim (Sumon), senior vice president of BCMEA, said the industry needed to explore alternative energy sources, including solar power, as it could not remain dependent solely on gas.

The conference also featured a technical session on technology, innovation and Bangladesh’s market potential, followed by discussions and presentations by Chinese technology and materials companies.

Bangladesh Bank has declared four financial institutions non-viable and initiated resolution proceedings against them under the Bank Resolution Act, 2026, citing severe financial weaknesses and their inability to meet obligations to depositors and other creditors.

According to a press release issued today (9 August), the institutions are Aviva Finance Limited, Fareast Finance and Investment Limited, FAS Finance and Investment Limited, and International Leasing and Financial Services Limited.

The central bank said it took the decision to restore good governance and accountability in the financial sector, protect the interests of depositors and other creditors and rebuild public confidence in the sector.

Following the declaration of the institutions as non-viable and their inclusion under the Bank Resolution Act, Bangladesh Bank exercised powers granted to it under the law to dissolve their boards of directors and cancel the appointments of their chief executive officers.

Administrators have also been appointed to oversee the resolution process and ensure its smooth and effective implementation while safeguarding the interests of depositors and other stakeholders.

The decision was taken following 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 reasons include large capital shortfalls, high levels of classified loans and investments, failure to maintain adequate liquidity, deteriorating earning capacity, and inability to repay liabilities owed to depositors and creditors.

Bangladesh Bank officials have been appointed as Administrator and Associate Administrator to manage the resolution process at the four institutions.

They will be responsible for overseeing the administration, management and resolution activities of the respective institutions.

Bangladesh Bank expressed hope that the move would help restore discipline and good governance in the financial sector and protect the interests of depositors and other stakeholders.

The dollar fell against major currencies including the yen and euro on Friday after US employment unexpectedly declined in July, fueling concerns about the economy’s strength and undermining the case for the Federal Reserve to raise interest rates.

The US economy lost 23,000 jobs in July, the Labor Department said, compared with economists’ expectations for an increase of 80,000 jobs, according to a Reuters poll.

The US unemployment rate fell to 4.1 percent as the labor participation rate fell to a near a five-and-a-half year low of 61.4 percent.

The dollar weakened against the yen after the report, shedding gains made in recent days in the aftermath of a historic intervention last week between Japanese and US authorities, which had pushed it to a 13-week low.

It was last down 0.57 percent to 157.56 yen but on track for a weekly gain of about 0.10 percent.

The euro was last up 0.39 percent against the dollar at $1.1568.

It is on track for a weekly gain of 0.41 percent against the dollar.

The dollar’s decline reflected the market’s waning expectations for a Fed hike.

Markets now put a 56 percent chance that the Fed will holding rates steady in September, up from 45 percent a day earlier, according to the CME’s FedWatch tool.

“I think no one really expected non-farm payrolls to be negative or that there would be a big downward revision in the June numbers,” said Thierry Wizman, global FX and rates strategist at Macquarie Group.

“I’m inclined to think that the market has shifted the Fed hike into October or December instead of September,” Wizman said.

He added that “anytime you see a print that suggests the US economy is weak or that the labor market is not as strong as otherwise thought, they effectively push out the prospect of a Fed rate hike.”

US Treasury yields fell sharply following the report.

Strong remittance growth was not enough to offset a rising import bill, pushing Bangladesh's current account balance deeper into the red at nearly $1.6 billion for FY2025-26, according to Bangladesh Bank data released today (9 August).

Central bank data showed imports on a free-on-board (FOB) basis rose 10.5% to over $71.1 billion, up from $64.36 billion a year earlier. On a cost, insurance and freight (CIF) basis, total import payments expanded by 10.1% to $75.24 billion.

Although workers' remittances grew 17.3% to reach $35.59 billion, the record inflows failed to fully absorb the widening trade deficit, which ballooned past $27 billion.

Balance of payments data showed that the current account deficit stood at $1.59 billion in FY26, compared with $138 million in FY25.

Exports, meanwhile, declined by about 1% to $43.86 billion in FY26 from $43.96 billion a year earlier. The combination of rising imports and falling exports pushed the trade deficit to $27.28 billion, up from $20.40 billion in FY25.

The sharp deterioration marks a reversal from the earlier trend, when strong remittance inflows and a narrowing trade deficit had helped reduce the current account deficit.

Ahsan H Mansur, former governor of the central bank, said the current account position had deteriorated after remaining comparatively healthy until May.

"The position of the current account balance has deteriorated, which was comparatively healthy till May. A rising current account deficit reflects a trade deficit, with imports rising and exports declining. The widening of the current account has created discomfort in the balance of payments," he said.

He also raised concerns about the recent slowdown in remittance inflows and its implications for the foreign-exchange market.

"Remittance inflows were below $3 billion in the last two months, which is concerning for the dollar market as well. Bangladesh Bank should relax the exchange rate and should not cap the rate," he said. "After Eid-ul-Adha, the country has not witnessed remittances above $3 billion, and the greenback would have come through informal channels."

Mansur said the gap between the exchange rate offered through the banking channel and that in the informal market should not be allowed to widen, as it could make the market volatile again.

Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management (BIBM), said, "The financial account would have more deficit if the remittance inflows are lower."

Financial account strengthens

Despite the deterioration in the current account, the financial account improved substantially in FY26.

The financial account recorded a surplus of $7.89 billion in FY26, compared with a deficit of $3.59 billion in FY25. Trade credit, an important component of the financial account, also swung into positive territory at $3.09 billion, compared with a negative $3.14 billion a year earlier.

Experts said the improvement in trade credit helped strengthen the financial account.

"Trade financing has improved the financial account as it reached a positive $3 billion, which was negative in the previous fiscal year," Mansur said. "On the other hand, the financial account has improved for both reserves and inflow of remittances."

Trade credit refers to goods or services received with payment deferred to a later date. In balance of payments accounting, it is treated as a short-term capital flow under the financial account because it finances imports.

Meanwhile, the overall balance reached $6.60 billion in FY26, compared with $3.39 billion in the previous fiscal year.

Ezazul said the improvement in the overall balance of payments was driven by the stronger financial account, whose surplus increased by more than $4 billion.

Bangladesh MFS market leader bKash is ploughing its net earnings back into technological infrastructure and algorithmic products, turning simple mobile transfers into data-driven financial services.

Founded in 2011 as a joint venture between BRAC Bank PLC and US-based Money in Motion LLC, the platform has grown to serve over 84 million verified customers -- roughly a third of Bangladesh’s 250 million registered mobile financial service accounts, according to central bank data.

Despite robust mobile network coverage, uneven smartphone adoption and spotty high-speed internet continue to impede a full transition to a digital economy. This gap is widened by low digital literacy and a pervasive informal market where cash remains the preferred medium to avoid taxes.

Addressing these barriers demands a coordinated effort combining public-private partnerships, targeted technology deployment, and sustained public awareness campaigns, industry insiders observe.

“By bringing essential financial services -- accessible through the simplest mobile phones -- to the doorsteps of everyday citizens, bKash has fundamentally reshaped the country’s digital transaction ecosystem,” said Shamsuddin Haider Dalim, head of corporate communications at bKash.

To expand digital usage, the platform has integrated over 200 features into its smartphone application while maintaining core access via basic feature phones. Tech integration has allowed over 1,200 readymade garment (RMG) factories to automate wage disbursements for nearly 10 lakh workers via its digital payroll system, while 2,800 billers now process utility payments through the network.

The strategy is generating strong financial returns. Post-tax profits more than doubled in 2025 to Tk 6.60 billion, up 109 percent year-on-year, propelled by higher user retention and product expansion.

Shareholders have opted against taking dividends, choosing instead to reinvest capital into tech expansion, the company said.

CASHLESS EXPANSION PUSH

To encourage customers’ shift, bKash focuses on giving users a ‘complete digital lifestyle.’ Currently, its users can access over 200 financial features and services through its app.

The MFS also offers scope for customers to add money from bank accounts or cash, keep savings and get loans from commercial banks and non-bank financial institutions (NBFIs) through the app.

By analysing transaction histories, bKash is increasingly using machine learning models to assess creditworthiness for individuals without formal credit histories.

Through a partnership with City Bank, 37 lakh users have accessed over Tk 10,000 crore in digital loans ranging from Tk 500 to Tk 50,000 as of May, with credit scoring determined entirely by automated behavioural algorithms.

A similar data-led approach is being rolled out to bridge credit access for small businesses. A pilot programme with BRAC Bank evaluates merchant transaction volumes via QR codes to extend instant, collateral-free microloans directly to vendor accounts.

bKash users can now open digital savings directly through the app with five commercial banks and an NBFI.

Infrastructure upgrades are also driving merchant acceptance. The company has deployed over 800,000 central-bank-standardised ‘Bangla QR’ codes across its network of nearly one million merchants -- the largest deployment by any single firm in Bangladesh.

OVERCOMING THE DIGITAL DIVIDE

It was observed that two primary customer groups remain underserved by the financial sector: those restricted by the digital divide and those lacking traditional credit histories.

For individuals without smartphones or reliable internet, bKash allows anyone with a basic feature phone to access core services.

The second group -- the people without formal credit history -- has traditionally been excluded from formal banking. To bring them into the formal net, bKash has pivoted to developing data-driven financial products.

Meanwhile, to keep customers’ money secure, bKash proactively collaborates with law enforcement agencies to combat illegal transactions like hundi and cyber threats.

Over the past 15 years, the MFS contributed to a behavioural shift towards a cashless economy, Shamsuddin said.

“However, the journey is not over. The primary gap remaining is achieving a sustainable behavioural shift from a cash-reliant mindset to a cashless lifestyle, ensuring every citizen, regardless of digital literacy or geographic location, confidently navigates cashless tools,” he added.

The American Chamber of Commerce in Bangladesh (AmCham) on Sunday called for policy reforms to promote innovation, investment, cybersecurity and ICT-led growth in Bangladesh.

AmCham leaders also suggested involving foreign investors in policymaking and national business forums to bring global expertise and international best practices in the process and help create a more competitive, transparent and investment-friendly business environment.

They made the recommendations at a policy dialogue titled "Accelerating Bangladesh's Digital Future: Policy Priorities for Innovation, Investment and ICT-Led Growth" held at a city hotel. Rehan Asif Asad, adviser to the prime minister on post, telecommunications, ICT, science and technology, attended the event as the chief guest.

Moderated by Rubaba Dowla, chair of the AmCham ICT Subcommittee and country managing director for Bangladesh, Nepal and Bhutan at Oracle, the dialogue focused on four areas: building a competitive digital economy, developing trusted digital infrastructure, accelerating AI, innovation and talent, and strengthening government-industry partnerships.

Speaking at the event, Rehan Asif Asad outlined five government priorities for the ICT and telecommunications sector, which has been designated a thrust sector.

The priorities include consistent and forward-looking policies under a five-year tax framework, improved mobile and broadband connectivity, digital public infrastructure, development of AI-ready talent and promotion of electronics manufacturing.

He said the telecom sector faces an effective tax burden of 51-56 per cent, compared with a global average of 22-27 per cent.

On digital infrastructure, Asad outlined the government's plan for 'One Citizen, One ID, One Digital Wallet', based on Estonia's X-Road platform. The system would be provided free of charge, with each ID linked to bank accounts and the National Board of Revenue.

He noted that the government also plans to equip 23,000-30,000 engineering and science graduates each year with skills in AI, cybersecurity and data, while introducing these subjects into school curricula.

Citing Vietnam's growth in consumer electronics exports from $1 billion to $217 billion over a decade, Asad stressed the need to promote electronics manufacturing through incentives similar to those provided to the garment sector.

In his opening remarks, AmCham president and Mastercard vice president Syed Mohammad Kamal welcomed the government's ratification of the Personal Data Protection Act (PDPA), saying the final legislation incorporated most of AmCham's recommendations.

While welcoming some measures in the Finance Act 2026, he called for greater clarity on the new digital permanent establishment provision linked to the 100,000-subscriber threshold.

He also urged the government to reconsider the increase in the turnover tax for internet service providers from 1.0 per cent to 1.5 per cent of gross receipts and facilitate inbound and outbound international payments for technology companies and startups.

Kamal also called for greater involvement of foreign investors in policymaking and national business forums to bring international expertise and best practices into the process.

Representatives of AmCham member companies, including Citibank, Cisco, HSBC, Mastercard, MetLife, Pathao, PwC, Standard Chartered Bank, ShopUp and Visa, raised issues concerning digital payments, cloud services, cybersecurity, data governance and AI talent.

They called for open-loop ticketing on metro and toll systems, wider access to Bangla QR and the "One Citizen, One Wallet" initiative for international payment networks, and alignment of cloud policies for banks and non-bank financial institutions with the PDPA.

They also urged early formation of the National Data Governance Authority, wider use of digital signatures and enforceable electronic agreements, stronger national cybersecurity and closer industry-academia cooperation to address shortages of AI and data engineering talents.

In response, Asad said RFID-based automated toll collection was being tested and Bangladesh Bank had agreed to open Bangla QR for inward international payments as a first step.

He said the "One Citizen, One ID" platform would be open to both domestic and international networks, while Startup Sandbox provisions would be fine-tuned in consultation with the broader startup community.

Identifying national cybersecurity as his immediate priority, Asad said work on a national AI policy would begin in the fourth quarter through a joint team comprising representatives from the private sector, government, academia and research institutions.

He also stressed the need to expand submarine cable capacity, noting that Bangladesh currently has six terabytes of capacity against peak national demand of 12 terabytes.