The Bangladesh Financial Intelligence Unit (BFIU) has identified 42 defaulting entities, each having non-performing loans of more than Tk 2.0 billion, in a fresh drive to trace and recover their assets allegedly siphoned abroad.Import export consulting

The matter was discussed in a meeting between BFIU high-ups and top executives of commercial banks at the Bangladesh Bank (BB) headquarters in the capital on Sunday.

Central bank Governor Md Mostaqur Rahman chaired the meeting.

Confirming meeting outcomes, BB Spokesperson and Executive Director Arief Hossain Khan said the 42 entities would be investigated as each had defaulted on loans exceeding Tk 2.0 billion and faced allegations of money laundering.

"The governor has instructed the banks to sign agreements with eight international firms," he said.

He informed that the eight international legal and financial advisory firms had been engaged to track down the overseas assets of the targeted entities and pursue legal action to freeze, seize, and repatriate the funds to Bangladesh.Investment strategy advice

As the international firms were engaged under a "No Win, No Pay" arrangement, they would not receive upfront fees or operational expenses.

Instead, their remuneration would be paid as a predetermined percentage of the assets successfully traced, recovered, and repatriated.

The eight international firms or consortiums are Grant Thornton, RI Consortium, Baker McKenzie & PwC, DLA Piper & Kroll, EY & Dentons, Rahman Ravelli & Interpath, BCG & HHR, and Animus Associates.

The firms are using information supplied by the relevant banks to identify the ownership, location, and nature of the assets held by the targeted borrowers in foreign jurisdictions.

Under the arrangement, the bank with the largest exposure to a particular defaulter involved in an alleged money laundering case will act as the lead bank.

It will file legal proceedings and sign agreements with the relevant international firm on behalf of other banks.

Other banks involved in the same case will assist the lead bank, according to the meeting's decision.

The move comes as Bangladesh's banking sector faces a sharp deterioration in asset quality, with a large volume of classified loans weighing on banks' capital and financial stability. As per the decision, the recovery initiative has been divided into two phases.

In the first phase, a government-appointed joint investigation team comprising the Anti-Corruption Commission (ACC), Criminal Investigation Department (CID), Customs Intelligence and Investigation Directorate (CIID), and the Central Intelligence Cell (CIC) of the Tax Department is working to trace assets linked to 11 priority individuals and entities.

Commercial banks are receiving support from international legal and professional services firms, including Grant Thornton, RI Consortium, Baker McKenzie & PwC, DLA Piper & Kroll, EY & Dentons, Rahman Ravelli & Interpath, White & Case, and Deloitte.

In the second phase, according to the Credit Information Bureau (CIB) data, 42 defaulting entities have been identified whose non-performing loans exceed Tk 2.0 billion each.

Preliminary information suggests that the assets are spread across a number of countries, including the US, the UK, the United Arab Emirates, Canada, Singapore, Belgium, New Zealand, Hong Kong, China, Malaysia, Thailand, and Australia.

Once assets are identified, the international firms will initiate legal proceedings under the laws of the respective jurisdictions to obtain orders for freezing or seizure of the assets.

The assets may subsequently be confiscated or liquidated through legal processes, with the recovered proceeds ultimately repatriated to Bangladesh.

Officials said the international engagement was aimed at overcoming the limitations of domestic recovery proceedings, particularly in cases where borrowers had transferred funds or acquired properties and other assets outside Bangladesh.

The recovery process, however, is expected to be complex as the authorities will have to comply with the laws, judicial procedures, and asset-recovery mechanisms of individual jurisdictions.

Managing Director and Chief Executive Officer of Mutual Trust Bank Syed Mahbubur Rahman told The Financial Express the meeting discussed how to recover the assets held abroad and expedite the recovery process.

He said international legal and financial experts would be engaged on a "No Win, No Pay" basis, meaning that fees would be payable only if the recovery efforts were successful.

"Our first task is to freeze the assets," he said, adding that efforts would then be made to recover and repatriate the funds.

"Though it is a difficult process, we will try to recover the assets through consistent and coordinated efforts," he said.

Bangladesh posted a record balance-of-payments surplus worth US$6.6 billion in the past fiscal year as stronger financial-account inflows helped outdo a gap left by widening current-account deficit.

The overall balance surplus was nearly 95-percent higher than the previous fiscal year's level, according to the latest balance-of- payments data from the central bank.

The current-account deficit widened to $1.59 billion in the FY2025-26 from just $138 million a year earlier.

Economists attribute the overall surplus largely to a sharp increase in the financial account, which rose to $7.89 billion during the year.

The financial account was supported mainly by the "other investment" category, which includes loans and other forms of financing from multilateral and other international institutions.

Trade credit, a form of short-term cross-border financing, also contributed to the increase.

The divergent movements in the current and financial accounts signify the extent to which external financing helped Bangladesh maintain a surplus in its overall balance of payments despite a sizeable trade deficit.

The trade deficit widened to $27.29 billion during the year, with imports far outstripping exports.

Export earnings edged down to $43.86 billion during the period, while import payments rose to $71.14 billion, accounting for an increase of more than 10 per cent.

The sharp rise in import costs was partly driven by higher global energy prices amid the red-hot Middle East crisis.

Payments for petroleum products surged by 107 per cent during the period, according to the central bank data.

Capital-machinery imports also picked up, rising by nearly 14 per cent as business activity and investment sentiment improved following the February general election.

Despite the widening current-account deficit, the overall external position remained comfortable, says Dr Ezazul Islam, director-general of the Bangladesh Institute of Bank Management or BIBM.

"I think the BoP remained in the comfort zone despite the widening current-account deficit," Dr Islam told The Financial Express.

He said the current-account deficit was not an immediate concern because exports started recovering.

Dr Islam, a former executive director of Bangladesh Bank's research department, said the central bank's exchange-rate policy had helped make the local currency more attractive and supported remittance inflows.

"The exchange rate remained stable due to the pursuit of a strong policy during the period," he added.

Another economist, who requested anonymity, said the improvement in the balance of payments was partly driven by increased external borrowing.

Such inflows could strengthen the external position in the short term, the economist said, but they also create future repayment obligations for Bangladesh.

The economist notes that the inflows had nevertheless helped the country rebuild its foreign-exchange reserves and improve its external liquidity position for the time being.

The latest figures underline the changing composition of Bangladesh's external balance: while the trade and current accounts remained under pressure, borrowing and other financial inflows provided a substantial offset and pushed the overall balance into a record surplus, he commented.

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 Investment Corporation of Bangladesh (ICB) has introduced its first-ever securities valuation policy to determine the fair value of its Tk14,983 crore investment portfolio, as the state-owned investment institution grapples with mounting losses and a severe financial crisis.

The new policy aims to improve financial transparency and reduce the risk of overvaluation or undervaluation of assets, particularly its substantial holdings in non-listed securities whose fair values had not previously been systematically assessed.

"As ICB currently faces a severe financial crisis, an initiative has been taken to assess the fair value of these assets, something that was never done before," an ICB official told The Business Standard on condition of anonymity.

The state-owned investment banker has long served as a key institution in advancing industrial growth and deepening its capital market.

From its inception, ICB has provided crucial institutional support to capital-starved firms through underwriting, bridge loans, and equity-backed financing.

Over time, it broadened its scope to encompass pre-IPO placements, debentures, equity participation, bonds, and leasing, alongside active portfolio management in the secondary market.

Despite its expansive presence across listed and non-listed assets, ICB lacked a standardised policy to determine fair market value.

This regulatory gap frequently exposed its annual financial statements to the risk of overestimating or underestimating investment values.

According to International Financial Reporting Standards (IFRS) 13, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Essentially, it's an exit price from the perspective of a market participant, considering current market conditions.

As of June 2025, ICB's total investment portfolio stood at Tk14,983 crore. Of this, Tk365.35 crore is allocated to government securities, while Tk14,617 crore is invested in other market assets.

Non-listed securities account for Tk1,100 crore of its total exposure with the substantial amount in mutual funds Tk894.34 crore, preference shares Tk149.50 crore and Tk53 crore in Ordinary Shares.

Currently, the ICB is struggling to stay afloat due to poor investment choices, severe portfolio erosion driven by market volatility, and a heavy debt burden incurred while supporting the capital market, factors that have dragged the once-profitable institution into crisis.

The situation is so dire that the institution failed to repay funds borrowed under a government sovereign guarantee upon maturity, prompting the government to extend the repayment deadline by another three years.

Furthermore, it is unable to service the interest on loans taken from state-owned banks for stock market investments.

Meanwhile, ICB lost about one-third of the money it borrowed from the government, state-owned banks and investors after years of supporting the stock market, leaving it under severe financial pressure and prompting a fresh appeal for government assistance. ICB reported a net loss of Tk1,214 crore in FY25, forcing it to skip dividend distributions.

The financial stress has persisted into the current fiscal year, with the corporation incurring an additional loss of Tk588 crore through March 2026. As a result, ICB's retained losses have ballooned to Tk1,609 crore.

Requesting anonymity, an ICB official said, "For many years, ICB provided financial assistance to entrepreneurs to support the country's industrialisation. It invested in both listed and non-listed companies. Under those circumstances, investments were made in numerous non-listed firms, but the fair value of these assets was never determined. As ICB currently faces a severe financial crisis, an initiative has been taken to assess the fair value of these assets, something that was never done before."

He added, "The current board is adopting various plans to restructure and save ICB. Initiating the fair value assessment of assets is a key part of these efforts."

The newly introduced framework aligns asset assessments with International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS), said in the valuation policy.

It establishes clear valuation criteria across both listed instruments such as equities, debentures, bonds, and mutual funds and non-listed holdings, including preference shares, underwriting securities, and unlisted funds.

To operationalise the policy, ICB has set up a seven-member valuation committee. Operating under specific terms of reference, the committee is tasked with determining accurate market values and submitting quarterly reports directly to the board of directors.

As per valuation techniques, the listed securities valuation method will be the closing price on the reference date at the stock exchanges.

If a listed security has not been traded for the last 6 months, its fair value will be determined using the non-listed securities valuation method.

For unlisted or delisted securities, or those with no trade history in the last 6 months, the valuation committee will determine the fair value using net asset value (NAV) approach derived from reviewing the latest auditor's report.

To deal with non-performing fixed-income holdings, the policy introduces a progressive write-down mechanism for bonds, debentures, and preference shares when scheduled principal or interest or dividend payments fail.

Under these guidelines, investments maintaining regular recoveries are carried at purchase cost as their fair value.

However, if recovery remains uncollected for one year, the fair value is marked down to 75% of the purchase cost, falling to 50% after two years, and written down entirely to zero if default persists beyond three years.

Furthermore, the framework strictly prohibits recognising uncollected interest or dividend income from non-listed securities on an accrual basis, mandating that such returns cannot be booked as income without actual cash realisation.

The depository authority has moved to ensure the security of the shares of non-listed companies, making their transfer easier and preventing fraudulent transactions.

The services will also allow the enterprises to obtain bank loans easily by pledging shares in electronic form.

As per the existing system, the Central Depository Bangladesh Ltd. (CDBL) works as a custodian of the shares of all listed and some non-listed securities kept in dematerialised form.

Following the new development, the CDBL will work as a custodian of other non-listed companies registered with the Registrar of Joint Stock Companies and Firms (RJSC).

The CDBL’s bylaws permit it to work as a custodian of eligible securities -- listed or non-listed.

“The CDBL shall determine the securities that are eligible to be held in dematerialised form, which may include, but is not limited to, listed and unlisted securities of all types, government bonds and treasury bills, mutual funds, commercial papers, certificates of deposit, and other debt instruments,” read the CDBL’s bylaws.

Apart from 637 listed securities, the depository authority presently works as a custodian of some non-listed securities, including open-ended mutual funds, securities of the bourses and the CDBL itself.

It charges companies a fee for keeping shares under its custody.

“The board of the depository authority is likely to fix a small custodian fee for non-listed companies so that they are inspired to avail themselves of the services of the CDBL,” said CDBL’s Managing Director Md. Abdul Mutaleb.

Mr. Mutaleb said they had already discussed the matter with the incumbent chairman and commissioners of the securities regulator, and they applauded the move.

As part of the move, the CDBL will sit with the Institute of Chartered Secretaries of Bangladesh (ICSB) to inspire non-listed companies to seek the services.

As of June 2026, there are 316,150 entities registered with the Registrar of Joint Stock Companies and Firms (RJSC). The CDBL expects many of those companies to show interest in keeping their shares under its custody.

What are the advantages?

In Bangladesh, paper-based share certificates create various practical and security problems, particularly for shares of non-listed companies, ownership of which are not recorded through the electronic depository system.

Physical certificates can be forged, duplicated, stolen, or tampered with. The transfer process for such shares is also lengthy and cumbersome, as companies need to verify certificates, signatures, transfer deeds, and their own shareholder records. Any variation in signature may result in share transfer being rejected.

The share certificates can also be lost, damaged, and mutilated.

Moreover, when a shareholder dies, transferring physical shares to heirs can become complicated because the company involved must verify the original certificates, ownership records, and supporting legal documents.

These matters of concern surrounding paper shares are evident in the operations of the Capital Market Stabilisation Fund (CMSF). The CMSF emerged to ensure distribution of undistributed stocks and cash dividends issued against paper shares of listed enterprises.

A large number of shareholders of listed companies still have paper shares, in which cases dividends remain undistributed -- in the hands of issuer companies.

The shareholders might have forgotten that they had purchased the shares, or that the ownership might have changed, and the new owners are completely unaware of the existence of the assets. Some of those investors might also lack the knowledge that the paper shares had to be converted into electronic form in their own interest.

Dematerialisation improves the security, efficiency, and transparency of share ownerships by replacing vulnerable paper certificates with reliable electronic records, enabling faster transfers and reducing administrative difficulties for both companies and shareholders.

Most importantly, electronic shares kept under the custody of the depository authority will enable companies to secure bank loans easily as the ownership records are clear, transparent and maintained centrally.

The Dhaka Stock Exchange (DSE) has sought expressions of interest (EOIs) from qualified audit firms to update its panel of auditors eligible to audit brokerage houses' financial statements.

In a notice, the bourse asked interested firms to submit their EOIs by 16 August to be considered for enlistment on its auditor panel.

The move follows auditor enlistment guidelines approved by the DSE last year to strengthen oversight of brokerage firms and improve transparency in line with the Securities and Exchange Rules, 2020.

Under the guidelines, brokerage firms must appoint statutory auditors from the DSE-approved panel.

DSE Managing Director Nuzhat Anwar said the bourse plans to update its existing panel of auditors for brokerage firms.

"International best practice involves updating audit panels regularly, as some auditors may join the list while others may be excluded in alignment with the regulator's panel," she said.

She said the DSE was also considering a more compact auditor panel under the Bangladesh Securities and Exchange Commission (BSEC).

"Once this pool of auditors is established, market intermediaries and companies will select auditors from the approved list," she added.

The DSE guidelines require the bourse to seek EOIs from qualified audit firms through its website within the first month of each financial year to update its panel.

Under the guidelines, brokerage firms may appoint an auditor from the panel for up to three consecutive years, subject to approval at their annual general meetings.

Auditors already enlisted with Bangladesh Bank and the BSEC may be included in the DSE panel.

BB and BSEC currently maintain separate auditor panels for banks and non-bank financial institutions, and listed companies, respectively.

The DSE first formed its auditor panel in June 2021 with 61 audit firms, including auditors enlisted by BB and BSEC and six additional firms.

Under the updated guidelines, an auditor will be barred from the panel if it is delisted by BB or BSEC, fails to secure enlistment with the Financial Reporting Council, or is found involved in unethical practices.

An auditor may also be barred if the financial statements of a stockbroker or dealer are found to have been prepared in violation of laws or securities regulations or fail to present a true and fair view of the firm's financial position.

Stocks on the Dhaka bourse fell last week as persistent domestic and geopolitical uncertainties continued to weigh on investor sentiment, triggering broad-based selling despite a recent cut in the central bank's policy rate.

The benchmark DSEX index dropped 34 points over the week to close at 5,860, while the blue-chip DS30 index fell 25 points to settle at 2,191. Of the issues traded, 188 advanced, 179 declined and 22 remained unchanged.

Despite the weak index performance, trading activity picked up. The average daily turnover rose 11.50% week-on-week to Tk1,181 crore, indicating that investors remained active even as risk appetite weakened.

According to EBL Securities, the market started the week on a subdued note as the DSEX struggled to sustain its position above the 5,900-point level. The central bank's first policy rate cut in nearly two years failed to ease prevailing concerns among investors.

Selling pressure intensified amid continued energy shortages and tensions in the Middle East. The uncertainties kept the market largely range-bound despite monetary easing and government measures aimed at addressing the fuel crisis.

Bargain hunters briefly returned to momentum-driven and insurance stocks, helping the market recover some of its earlier losses. However, the rebound lacked enough strength to sustain the broader market.

Renewed buying interest in mutual funds also emerged following the regulator's guidelines on mutual fund conversion. Still, cautious investors remained largely on the sidelines towards the end of the week, with profit-taking and subdued risk appetite outweighing selective buying.

Sector-wise, textile stocks dominated turnover, accounting for 22.1% of total weekly turnover, followed by general insurance at 14% and pharmaceuticals at 11.5%.

Mutual funds posted the highest sectoral gain, rising 4.9%, followed by general insurance and life insurance, which gained 3% and 2.9%, respectively. In contrast, food stocks declined 2.8%, ceramics fell 1.6% and cement dropped 1.3%.

Fareast Finance led the weekly gainers, surging 31.6%, followed by Tung Hai Knitting at 28.6%, GBB Power at 27.7%, International Leasing at 25% and FAS Finance at 20.8%.

S Alam Cold Rolled Steels was the biggest loser, declining 9.3%, followed by Sena Insurance, Apex Spinning, Orion Infusion and Argon Denim, which fell 8.8%, 7.6%, 7.4% and 7%, respectively.

Individual investment in Bangladesh's treasury bills and bonds declined in FY26 for the first time in three years, even as overall investment in government securities rose sharply on the back of increased participation by banks, insurers, and other financial institutions.

According to Bangladesh Bank data, individual holdings of treasury bills and bonds fell by Tk450 crore to Tk7,469 crore at the end of FY26 from Tk7,919 crore a year earlier. Individual investors held just 0.94% of total government securities in FY26.

The decline marks a reversal from the previous two fiscal years. Individual investment stood at only Tk1,102 crore in June 2023, before rising to Tk3,974 crore by June 2024.

Bankers said treasury bills have traditionally attracted more retail investors than treasury bonds because of their shorter maturities, ranging from three months to less than a year.

Retail participation in treasury bills and bonds began to rise from FY24 as yields increased. Higher returns encouraged greater investment from individuals, businesses and, in particular, banks, insurance companies and other financial institutions.

Even so, retail investment in government securities remains modest compared with bank deposits. Bankers attribute this to limited public awareness of treasury bills and bonds, as well as stronger public confidence in banks as a place to keep savings.

Yields on treasury bills and bonds started rising after Bangladesh Bank scrapped the 9% lending rate cap and introduced the SMART-based interest rate regime on 1 July 2023.

They continued climbing and exceeded 12% at one stage in FY25. Bankers said retail investment in government securities had never reached such levels before.

A review of FY25 data shows treasury bill and bond yields hovered close to 12% in some months and surpassed that level in others. During the same period, banks offered deposit rates lower than bills and bonds, depending on the institution. As treasury yields were generally higher than deposit rates, many retail investors shifted funds into government securities.

The trend reversed in FY26 as treasury yields began to ease. As the gap with bank deposit rates narrowed, retail investment in treasury bills declined, while banks offered deposit rates of 9%-11%.

The situation has shifted again this August, with several leading banks cutting deposit rates by 50 to 100 basis points, while some reduced them even further. As a result, deposit rates at those banks have fallen to around 8.5% to 9%.

"Many banks offered deposit rates of 10.5%-11% in FY26, prompting retail customers to move their money back into bank deposits," said Mohammad Ali, managing director of Pubali Bank.

"Retail investors generally seek the highest return over a relatively short period," he said. "Many banks were offering around 10% interest on three-month deposits, whereas treasury bills were not providing comparable returns at the time."

According to Bangladesh Bank data, the yield on 91-day treasury bills averaged around 10.52% in FY26, significantly lower than in the previous two fiscal years, when yields had peaked following the interest rate reforms.

Investment by banks, insurers, financial institutions rises

Despite the decline in retail participation, total investment in treasury bills and bonds climbed in FY26, reaching Tk7.95 lakh crore from Tk6.94 lakh crore a year earlier.

Bankers said the increase was driven primarily by banks, insurance companies and other financial institutions.

They said commercial banks have been allocating more funds to government securities as private sector credit demand remains weak. Bangladesh Bank data show private sector credit growth has remained subdued since August 2024, while growth stayed below 5% for four consecutive months from March to June.

With lending opportunities constrained, banks have increasingly turned to treasury bills and bonds as an alternative investment avenue, bankers added.

The Chittagong Chamber of Commerce and Industry (CCCI) has demanded a 90-day moratorium on gas and electricity bill payments, along with a three-month suspension of loan instalments, for industrial units affected by prolonged utility disruptions.

In separate letters sent today (8 August) to the power, energy and mineral resources minister and the finance minister, the chamber also called for a waiver on penalties for delayed utility payments and a suspension of bank interest on loans taken by affected industries during the period. Both letters were signed by CCCI President Mohammad Amirul Haque

The chamber said sustained disruptions in gas and electricity supply had severely hit production at export-oriented garment, textile and plastic factories, as well as small, medium and large manufacturing units nationwide. Many factories, it said, had either shut down or gone into effective layoff as a result.

In his letter to Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud, CCCI President Mohammad Amirul Haque said almost all factories had suffered substantial financial losses due to the reduced and erratic gas and power supply.

As production fell, exports and sales also declined sharply, or stopped altogether in some cases, making it difficult for businesses to meet expenses such as wages, bank interest, utility bills and daily operating costs, the letter said.

The chamber urged the government to refrain from disconnecting gas and electricity connections to industrial units and to replace the existing month-to-month payment practice with a 90-day, penalty-free grace period.

It further proposed that penalty-free payment facilities remain in place for at least six months, arguing that the measure would give affected businesses breathing space to recover losses and help sustain uninterrupted industrial production.

In a separate letter to Finance and Planning Minister Amir Khasru Mahmud Chowdhury, the chamber sought a three-month suspension of loan instalment payments along with a waiver of bank interest for industries hit by the utility crisis.

It warned that forcing businesses to keep bearing high borrowing costs amid severe production and revenue losses would deepen their financial distress, which could in turn undermine the government's efforts to accelerate industrialisation and foster a business-friendly investment climate.

The chamber added that the situation could send a negative signal to local and foreign investors about the country's business environment.

It therefore urged the finance ministry to instruct relevant authorities to suspend loan instalments for three months and waive bank interest for garment, export-oriented and other industrial establishments affected by the gas and electricity supply disruptions.

Bangladesh Jewellers Association (BAJUS) today (8 August) raised the price of gold by Tk4,374 per bhori, setting the price of 22-carat gold, including VAT, at Tk234,038 per bhori.

BAJUS announced the new rate in a notice issued this morning, saying it will take effect from 10am the same day.

The trade body said the price adjustment was made in view of the rising price of pure gold in the local market.

According to the new rate, 21-carat gold will now cost Tk223,541 per bhori, 18-carat gold Tk191,931 per bhori, and traditional gold Tk156,822 per bhori, all inclusive of VAT.

BAJUS said the new prices will remain effective at all jewellery outlets across the country until further notice, though making charges will vary depending on the design of ornaments.

Since VAT is already included in the selling price of gold and silver ornaments, it cannot be charged separately from customers, the notice added.

Existing BAJUS rules on ornament exchange and purchase, excluding specified VAT, making charges and stone costs will remain unchanged.

The previous price adjustment was made on the morning of 7 August, when BAJUS cut the price of 22-carat gold by Tk3,266 per bhori to Tk229,664, including VAT.

At that time, 21-carat gold was priced at Tk219,342, 18-carat at Tk188,374, and traditional gold at Tk153,848 per bhori, effective from 10am that day.

With Saturday's revision, the price of gold has been adjusted 100 times in the local market so far this year, with 49 increases, 50 decreases, and one VAT-related adjustment.

While gold prices went up, the price of silver remained unchanged in the domestic market. Currently, 22-carat silver, including VAT, is being sold at Tk4,899 per bhori.

Silver of 21-carat, 18-carat and traditional grades are being sold at Tk4,666, Tk4,024 and Tk3,033 per bhori, respectively.

Silver prices have been adjusted 61 times so far this year, with 31 increases and 30 decreases, according to BAJUS.

Chinese exports and imports soared in July, official data showed Friday, as the manufacturing powerhouse benefits from a global AI boom lifting overseas demand for its tech products.

The world’s second-largest economy last year achieved a historic trade surplus of nearly $1.2 trillion, helping its manufacturing sector through a prolonged slump in domestic consumption.

The export boom has been propelled further this year by increased demand for Chinese data-processing equipment and related components, as companies rush to build artificial intelligence capacity.

Exports climbed 23.9 percent year-on-year last month, the General Administration of Customs (GAC) reported, compared with a 23.0 percent forecast by Bloomberg.

Overseas shipments of computers and related parts jumped 45.2 percent on year in the first seven months, the data showed.

“Export and import values remain elevated, helped by soaring global demand for electronics and green tech products,” wrote Julian Evans-Pritchard of Capital Economics.

China’s trade surplus appears to be on pace to match that of last year, reaching $687 billion through the end of July, the data showed Friday.

The yawning gap has increasingly raised eyebrows abroad -- particularly in Europe, where leaders worry about floods of Chinese exports squeezing out local manufacturers.

Beijing has insisted it never deliberately pursued a trade surplus.

The Communist Party’s Politburo -- the decision-making body headed by President Xi Jinping -- urged a more “balanced” trade development at a key meeting late last month.

“Export growth continued to support the economy in July,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, wrote in a note after Friday’s data.

“I expect intense negotiations between China and (its) major trading partners in coming months on what can be done to make trade more balanced,” he added.

Imports increased 27.5 percent in July, extending this year’s strong performance even as main indicators of domestic demand have remained weak.

However, that was slower than the 36 percent surge seen in June, and also missed a Bloomberg forecast of 29.5 percent growth.

The growth has been achieved despite considerable pressure on the global trading system from the war in the Middle East and simmering trade frictions between Beijing and Washington.

China’s shipments to the United States rose 17 percent year-on-year last month, Friday’s data showed, as the countries remain locked in a trade war despite efforts to ease tensions.

That brought China’s surplus with its superpower rival this year to nearly $171 billion through the end of July, according to the official data.

The latest figures come days after a fresh flare-up in trade tensions between the world’s top two economies.

Following sanctions imposed by Washington over forced labour and national security concerns, Beijing on Wednesday announced restrictions on drone exports to the United States and blacklisted six firms.

China and the United States spent much of last year embroiled in an escalating trade war but reached a truce when US President Donald Trump met Xi in October.
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The relationship will undergo further scrutiny in coming weeks as officials prepare for a scheduled state visit by Xi to the United States in late September.

People will soon be able to borrow digitally from banks to pay utility bills and top up their mobile phones. The interest-free loans, ranging from Tk 50 to Tk 5,000, will have to be repaid within 30 days.

There will be no interest on such loans. Banks will instead be allowed to charge a fixed service fee based on the amount, according to a draft policy by the Bangladesh Bank (BB).

The central bank said the facility would help expand digital financial services and promote a cashless economy.

The BB has published the draft for public consultation and feedback. Central bank officials said they would review comments from stakeholders before issuing the final policy.

The maximum service fee will be Tk 5 for loans of Tk 50 to Tk 250. The fee will rise to Tk 10 for loans of Tk 251 to Tk 500, Tk 15 for loans of up to Tk 1,000, Tk 25 for loans of up to Tk 2,000, Tk 35 for loans of up to Tk 3,000, and Tk 50 for loans of Tk 3,001 to Tk 5,000.

Banks will not be allowed to charge any interest, penalty, processing fee or other charge beyond the fixed service fee. Customers who repay their loans before maturity will also not have to pay an early settlement fee.

The entire lending process will have to be completed digitally. Instead of physical signatures, banks will have to verify customers through biometric authentication and obtain their consent digitally.

Banks must also verify customers through registered mobile SIMs and one-time passwords, and use two-factor or multi-factor authentication where necessary.

According to the draft, bank agents and third-party service providers will not be allowed to store customer biometric information.

To strengthen cybersecurity and protect customer data, commercial lenders will have to store all customer and loan-related information at data centres located in Bangladesh, in line with the BB’s cloud computing and cybersecurity guidelines.

For such small loans, real-time checks through the Credit Information Bureau (CIB) have been temporarily relaxed until the BB’s API-based 24/7 CIB system becomes fully operational. However, banks must put safeguards in place to prevent loans from being disbursed to defaulters.

Banks will also not be allowed to charge customers a CIB inquiry fee for this product.

Before disbursing a loan, banks must collect information about a borrower’s existing loans from other banks, finance companies and mobile financial service providers, where applicable, to comply with the Bank Company Act.

Banks will have to clearly explain the loan amount, repayment period, fees and repayment methods before obtaining customers’ consent, as per the draft. Besides, banks will have to take steps to improve customers’ financial literacy.

Before launching it commercially, scheduled banks will have to pilot the product for at least six months. After a successful evaluation, commercial lenders will be allowed to roll out the product after obtaining approval from their respective boards of directors.

Seeking anonymity, a senior central bank official told The Daily Star that City Bank has applied to the BB to introduce the loan product. The application prompted the central bank to prepare a policy that can be used by all banks.

Muhit Rahman, managing director of One Bank, said, “This will be a good move. Our neighbouring countries already have such loan products.”

He said the central bank’s draft policy is still at a preliminary stage and needs further clarification on issues such as borrower identification, borrower assessment and other operational aspects.

The scheduled banks disbursed Tk 428.34 billion (Tk 42,834.16 crore) in agricultural and rural credit in the just-concluded fiscal year 2025-26, exceeding the central bank’s annual target of Tk 390 billion (Tk 39,000 crore) (9.83 percent), according to a monthly report released by Bangladesh Bank (BB).

The report, titled “Monthly Report on Agricultural and Non-Farm Rural Credit Position” and prepared by the Agricultural Credit Department-1 (Monitoring and Oversight Wing) of the central bank, shows disbursement through 58 participating banks rose 14.76 percent compared to Tk 373.26 billion (Tk 37,326.52 crore) disbursed in FY2024-25.

Including Tk 13.34 billion (Tk 1,334.22 crore) disbursed by the Bangladesh Rural Development Board (BRDB), the total agricultural credit flow for FY26 stood at Tk 441.68 billion (Tk 44,168.38 crore), up 13.97 percent from Tk 387.54 billion (Tk 38,754.26 crore) in the previous fiscal year.

Target achievement by bank category:

Specialised banks – Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank and Probashi Kallyan Bank – posted the highest target achievement at 123.40 percent, disbursing Tk 126.16 billion (Tk 12,615.57 crore) against a target of Tk 102.23 billion (Tk 10,223 crore).

State-owned commercial banks achieved 109.89 percent of their Tk 36.57 billion (Tk 3,657 crore) target, disbursing Tk 40.19 billion (Tk 4,018.62 crore), while foreign commercial banks reached 104.05 percent of their Tk 15.93 billion (Tk 1,593 crore) target with disbursement of Tk 16.57 billion (Tk 1,657.46 crore).

Private commercial banks, the single largest contributor to overall disbursement, achieved 108.05 percent of their Tk 171.06 billion (Tk 17,106 crore) target, disbursing Tk 184.83 billion (Tk 18,483.19 crore), which alone accounted for 43.15 percent of the year’s total agricultural credit.

Islamic banks were the only category to fall short of their target, disbursing Tk 60.59 billion (Tk 6,059.32 crore) against a target of Tk 64.21 billion (Tk 6,421 crore), an achievement rate of 94.37 percent and a 1.50 percent decline from the previous year.

Under the Agricultural and Rural Credit Policy and Programme for FY26, banks were required to disburse 55 percent of credit to the crops sector, 20 percent to livestock and poultry, 13 percent to fisheries, 2 percent to irrigation and agricultural equipment, and the remaining 10 percent to non-farm rural income-generating activities.

Actual disbursement, however, showed a somewhat different pattern: crops received 47.32 percent of total disbursement, livestock and poultry 26.38 percent, fisheries 13.33 percent, non-farm rural credit 11.68 percent, and irrigation and agricultural equipment combined just 0.93 percent. A further 0.37 percent went to grain storage and marketing.

Loan recovery outpaces disbursement growth:

Recovery of agricultural loans grew faster than disbursement during the year, rising 19.99 percent to Tk 456.27 billion (Tk 45,626.93 crore) from Tk 380.24 billion (Tk 38,024.50 crore) in FY25. Amounts due for recovery also rose 9.37 percent to Tk 660.26 billion (Tk 66,025.75 crore).

Overdue loans fell 8.43 percent year-on-year to Tk 198.07 billion (Tk 19,807.33 crore), while classified agricultural loans declined 5.92 percent to Tk 185.78 billion (Tk 18,578.47 crore), offering some relief after a sharp jump in both categories during FY25.

Foreign commercial banks reported zero overdue and zero classified loans in both fiscal years, while Islamic banks saw their overdue loans surge 73.11 percent and classified loans nearly two-and-a-half times higher, the only category to see a rise in both indicators.

Outstanding agricultural credit across all bank categories stood at Tk 635.74 billion (Tk 63,574.38 crore) at the end of FY26, up 5.55 percent from Tk 602.32 billion (Tk 60,232.42 crore) a year earlier.

Month-wise figures show disbursement fluctuated through the year, peaking in December 2025 at Tk 49.15 billion (Tk 4,915.49 crore) before falling sharply in the following months. Disbursement picked up again in June 2026, the final month of the fiscal year, rising 29.47 percent from May to close the year at Tk 47.57 billion (Tk 4,757.55 crore) for the month.

The Bangladesh Rural Development Board disbursed Tk 13.34 billion (Tk 1,334.22 crore) in agricultural credit in FY26, 6.55 percent lower than its Tk 14.28 billion (Tk 1,427.74 crore) disbursement in FY25, against a target of Tk 14.86 billion (Tk 1,486.10 crore). Recovery through BRDB, however, rose 2.71 percent to Tk 13.11 billion (Tk 1,311.23 crore).

BB data going back to FY2016-17 shows agricultural credit disbursement has more than doubled over the past decade, from Tk 209.99 billion (Tk 20,998.70 crore) to Tk 428.34 billion (Tk 42,834.16 crore), alongside a steady rise in the annual disbursement target, which has grown from Tk 175.5 billion (Tk 17,550 crore) to Tk 390 billion (Tk 39,000 crore) over the same period.

The report noted that the agriculture sector continues to contribute 11.71 percent to Bangladesh’s GDP and employs around 46 percent of the country’s workforce, underlining its centrality to food security and rural livelihoods even as the sector faces mounting pressure from climate change and shrinking arable land.

The central bank’s report cautioned that despite the positive overall disbursement picture, the continued scale of overdue and classified loans “compels” close attention to recovery and default management to sustain healthy agricultural financing going forward.

Every major conflict in the Gulf revives the same fear – not simply of higher oil prices, but of whether the region that supplies around one-third of the world's seaborne crude can continue to underpin the global economy.

This time, however, the question runs deeper. If war prolongs and continues to damage production facilities, export terminals or vital shipping lanes, is the age of Middle Eastern oil nearing its end? Is the world prepared to move beyond oil, gas and the Middle East altogether and survive?

The modern economy was built on abundant and affordable fossil fuel. Coal powered the Industrial Revolution, but oil overtook it after the Second World War as Gulf producers rapidly expanded output. Natural gas followed, becoming an essential fuel for power generation, industry and households. Together, oil and gas still account for more than half of global energy consumption despite the rapid growth of renewables.

Is oil really declining?

Although the 21st century is expected to belong to renewable energy, fossil fuels are likely to dominate the global energy mix for decades. Oil and gas will remain indispensable for transport, heavy industry, petrochemicals and heating even as electricity becomes cleaner.

Renewables are booming. But electricity is only a part of the energy demand. Aviation still depends on jet fuel. Shipping still runs largely on oil. Petrochemicals need crude. Heavy machinery and defence depend on petroleum.

Oil's share is shrinking gradually, but its strategic importance remains enormous. The transition is underway, not complete.

Modern globalisation was built on abundant, affordable energy. The Gulf's real advantage has never been just oil – it has been abundant, low-cost oil.

Can the world replace Gulf supplies?

The Gulf countries supply over a fifth of global crude oil production and about 10% of worldwide natural gas production. The region holds roughly 33% of proven global oil reserves and 21% of natural gas reserves.

A major portion of Gulf oil and liquefied natural gas passes through the Strait of Hormuz, making global supply heavily dependent on maritime stability in the region. With war now spreading to the Red Sea, another major sea trade corridor now comes under fresh threat as Yemen-based Houthis targeted Saudi ships on Bab el-Mandeb. Oil and goods leaving the Persian Gulf through Hormuz must travel past the Arabian Peninsula and typically pass through Bab el-Mandeb to reach the Red Sea and the Suez Canal.

When both channels become unsafe, around one-fifth of global oil supplies and one-tenth of natural gas supplies are effectively cut off from the market.

Some potential alternative suppliers are the United States, Canada, Brazil, Guyana, and Norway. Some have already boosted output and exports, but physical constraints remain as they cannot build production, storage and export infrastructure overnight to further scale up supplies.

These producers may benefit in the short term from supply gaps, but they are far from being able to replace the massive supply deficit from the Persian Gulf immediately. Russia and Venezuela could have been better alternatives had sanctions not constrained their production and exports.

Modern globalisation was built on abundant, affordable energy and the Gulf provided that. If prolonged war and persistent sanctions push oil prices to $120-$150 a barrel for months or years, the world will face higher inflation, costlier shipping, and rising prices of food, fertilisers and raw materials, leading to slower trade. For smaller economies like Bangladesh, the impact would be far worse; government subsidies would rise and debt stress would deepen.

Scarce and expensive oil and gas will accelerate the transition to electric vehicles, renewable energy, and emerging alternatives such as hydrogen. But any such transition takes decades.

In the meantime, energy scarcity and high prices could instead reverse the global push for clean energy. Coal is already making a comeback as countries rely on it to generate more electricity. Governments often return to fossil fuels during crises, even while investing in clean energy for the long term. The electricity-hungry AI industry is also prompting the US to invest more in nuclear energy.

What it means for Bangladesh

The world is unlikely to move beyond oil and gas anytime soon, and moving beyond the Middle East as their cheapest and most reliable supplier is even less realistic. Any prolonged disruption in the Strait of Hormuz, Bab el-Mandeb, or the Suez Canal can amplify price shocks and ripple far beyond the region, pushing up inflation, slowing trade and delaying economic recovery across both developed and developing economies.

There are encouraging signs that diplomacy may yet prevail. Despite exchanging threats, the US and Iran have both indicated a willingness to resume talks. If this progresses, Hormuz may reopen. Saudi Arabia, though forming a global group to strengthen maritime security in the Red Sea amid Houthi attacks, has urged the Trump administration for restraint.

While oil multinationals are enjoying a windfall from war-induced price hikes – making an estimated $93 billion in the three months since the war began in February this year – Middle Eastern countries have suffered substantial damage to at least 80 oil and gas facilities, with some requiring up to two years to resume operations, according to International Energy Agency estimates.

The world will continue to need oil and gas. The Middle East also needs to protect its oil resources, which remain the backbone of the region's economies despite ongoing diversification efforts.

The longer a Gulf war lasts, the greater the risk for both the Middle East and energy-importing countries.

For Bangladesh, the stakes are particularly high. Its economy has grown on the back of affordable imported energy and export-oriented trade, both of which depend heavily on the Gulf and the shipping routes through Hormuz, Bab el-Mandeb, and the Suez Canal. Any prolonged disruption would arrive as higher import bills, persistent inflation, and slower economic growth. If the Gulf's oil economy weakens, Bangladesh risks losing its largest manpower market.

Bangladesh has little influence over the course of a distant conflict. What it can do is pursue a balanced foreign policy relating to the Gulf region, diversify energy sources where possible and avoid strategic choices that could jeopardise either its fuel supplies or access to key maritime trade routes.

Bangladesh Bank has formed a Tk100 crore fund to encourage small merchants to adopt Bangla QR, with the fund to be increased if necessary, Governor Md Mostaqur Rahman said today (8 August).

Speaking at a Bangla QR workshop at Radisson Blu Chattogram Bay View's Nilgiri Hall, organised jointly by Bangladesh Bank and the International Finance Corporation (IFC) under the "Cashless Digital Bangladesh" project, he said Bangladesh was drawing on neighbouring countries' experience to expand digital payments.

The country currently records around 1 crore digital transactions a month, but the central bank aims to raise this to 1 crore a day by the end of the current fiscal year - a nearly 30-fold increase in about 10 months.

Limited smartphone use remains a major obstacle, with around 6 crore people still using feature phones. The government is working to provide affordable Android handsets. Users are willing to spend around Tk3,000, while manufacturers say such phones cannot be offered below Tk8,000.

Bridging the Tk5,000 gap could require around Tk30,000 crore, and initiatives are being explored to finance the investment, including instalment-based purchases through mobile operators.

Bangla QR use surges

Bangladesh Bank data show Bangla QR transactions rose from 7,23,378 worth Tk212.05 crore in January 2026 to 62,54,938 worth Tk1,475.95 crore in July - an 8.6-fold rise in volume and nearly sevenfold increase in value in six months.

Bangla QR merchants increased from 13,52,712 in May to 16,85,188 in June and 24,25,133 in July, representing 79% growth in three months and nearly 93% in 10 months.

Cash management costs Tk20,000cr

Md Parvez Anzam Munir, additional director of Bangladesh Bank's Payment Systems Department-1, said cash management costs around Tk20,000 crore annually, covering printing, production, distribution, collection of worn notes and their eventual destruction.

He called the expenditure an "extreme luxury and waste" for a poor country and said greater digital payments could substantially reduce it.

Governor Mostaqur said digital transactions would improve transparency in business finances and reduce risks for small traders who rely on employees to handle money, including concerns over missing funds and irregularities. Digital payments could also provide an alternative to cash for extortion payments.

Bangla QR has been made mandatory for merchant licences issued by city corporations and municipalities, while institutions have been instructed to replace existing QR codes with Bangla QR by 2026. Instant settlement of Bangla QR transactions into merchants' accounts has also been introduced.

Deputy Governor Md Kabir Ahmed said Bangla QR would help build a financially inclusive society. Around 24 lakh merchants now use the system, with about 2 lakh daily transactions worth nearly Tk50 crore. Greater use could also help raise the tax-to-GDP ratio.

Merchants warned of fraud

The workshop warned merchants about scams involving fake calls and SMS impersonating banks, mobile financial services or government agencies, as well as phishing, hacking, malware, fake customer care and fraudulent websites. They were advised not to share personal information, PINs or OTPs or click unfamiliar links.

Chaired by Payment Systems Department Executive Director Md Sirajul Islam, the workshop was attended by Governor Md Mostaqur Rahman as chief guest, Deputy Governor Md Kabir Ahmed and IFC representative Hasan Shahriar as special guests. Around 120 merchants, including 20 women, participated.

Three sessions covered Bangla QR use, benefits and transaction security. Hasan Shahriar said IFC's monthly digital transaction target had risen from 20 lakh to around 1 crore. Senior Bangladesh Bank officials, including Executive Director Md Hanif Mia, also attended.

Brent crude oil climbed more than $1 a barrel on Friday over ongoing uncertainty about the negotiations in progress that determine control of, and reopen, the key shipping artery of the Strait of Hormuz.

Brent crude futures settled at $83.55 a barrel, gaining $1.06, or 1.3 percent. West Texas Intermediate futures finished at $78.18 a barrel, up 89 cents, or 1.15 percent.

Oil futures settled more than $3 a barrel higher on Thursday as Iran reviewed a bill to ban US and Israeli vessels from the Strait of Hormuz, through which roughly a fifth of the world’s oil and liquefied natural gas normally passed before the war began at the end of February.

Oil prices fell earlier in the week as a possible solution to the conflict looked more likely, part of an on-again, off-again pattern that has persisted since the US and Israel jointly struck the nation in late February, igniting a conflict that has now stretched into a sixth month.

Brent was on course for a weekly loss of more than 8 percent, while WTI lost more than 7 percent.

While this week’s signals on a potential deal have sent a roller-coaster ride in market sentiment, the market remains in the dark as to what needs to happen for the agreement to be clinched, said Vandana Hari, founder of oil market analysis provider Vanda Insights.

“The market is trying to assess if an Iran-Oman agreement would allow a US-flagged vessel to transit the Strait of Hormuz,” said Andrew Lipow, president of Lipow Oil Associates.

“Would it allow a US-owned vessel to go through? Would it allow a vessel headed for a US port to go through?”

Both Iran and Oman are said to have agreed on the route ships would take through the strait, which lies between their two countries. It is unclear if the US will agree to these terms.

Analysts also said that this week’s developments have signalled that hostilities between Iran and the US are not yet over.

Iran is seeking fees of between 5 percent and 7 percent of the price of cargoes from ships using the strait, a senior Iranian official said.

Oman, meanwhile, is discussing fees of about 3 percent while Washington wants no fees at all.

“The longer the supply disruption goes, the longer the world’s commercial reserves are being drawn down,” he said.

Four industry sources have said the proposed deal is not easily workable because of US sanctions and restrictive insurance clauses on any payments.

“The structure of the Iran-Oman agreement in its current form and the power it yields to Iran is nothing that (US President Donald) Trump can accept politically,” said Bjarne Schieldrop at SEB Research. “Trump would face heavy political criticism at home if he did.”

“We need that strait to be reopened fully,” said John Kilduff, partner with Again Capital.

The continued uncertainty about the outcome of the war and the timing of its end keeps traders very anxious, Kilduff said.

The outstanding stock of government guarantees fell by more than 5.0 per cent to Tk 1.015 trillion as of March 31, 2026, from Tk 1.070 trillion three months earlier, as repayments outpaced the issuance of new guarantees, according to the Finance Division.
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The decline is attributed to both repayments against existing guaranteed loans and a limited number of new guarantees issued over the past two years, according to people familiar with the matter.

Of the total outstanding guarantees at the end of March, external guarantees accounted for Tk 534.17 billion and domestic guarantees Tk 480.79 billion.

The government, through the Finance Division, provides sovereign guarantees to domestic financial institutions including Bangladesh Bank as well as foreign financial institutions including foreign banks against loans or other financing facilities extended to government agencies and state-owned enterprises.

Such guarantees expose the government to contingent liabilities because the state may ultimately have to repay the money if the guaranteed entities fail to service their obligations.

The guarantees have primarily been extended to entities operating in strategic and infrastructure-related sectors, including power generation, mineral production and supply, fertiliser manufacturing and state-owned enterprises such as Biman Bangladesh Airlines and the Trading Corporation of Bangladesh (TCB).

At the end of December 2025, the government's outstanding guarantee stock stood at Tk 1.0697 trillion. Of this, Tk 583.83 billion was externally sourced and Tk 485.90 billion from domestic sources.

People familiar with the matter said the issuance of new guarantees had remained limited during the last interim-government period and during the period of transition to the new government following the last national election.

They said the relatively low volume of new guarantees over the past two years, combined with repayments against existing guaranteed loans, had helped reduce the overall stock.

The decline in guarantees could ease the government's contingent-liability exposure in the short term, although the fiscal risk remains depending on the financial health of the entities whose borrowings are backed by sovereign guarantees.

The government therefore needs to monitor the repayment capacity of guaranteed entities closely, particularly state-owned enterprises and companies operating in capital-intensive sectors, where financial difficulties could eventually translate into direct fiscal obligations.

Kaliakair Hi-Tech Park has so far received $283 million in investment out of proposed investments worth $1.636 billion, Posts, Telecommunications and Information Technology Minister Faqir Mahbub Anam said yesterday (8 August).

He said the state-run facility drew investment proposals worth $629 million from seven companies based in China, Japan, India, South Korea and the United States while visiting the country's first hi-tech park in Kaliakair to assess technology-based industrial development, investment and employment prospects.

Anam said multinational companies, including Google, Meta and TikTok, had also proposed investment in an AI data centre project planned by a US-based company.

"The centre is currently under construction," the minister said.

Officials said the inspection was part of a review of progress under the government's 180-day action plan.

Anam said initiatives had been taken to accelerate investment in the park and make domestic products more competitive globally under the government's "Made in Bangladesh" initiative.

"Fiscal and non-fiscal incentives are also being prepared for investors," he said.

An official statement said 85 companies had so far been allotted plots or space at the park, including seven foreign firms. Of them, 40 have started production or business operations, 28 are setting up plants and 17 are expected to begin construction soon.

The government has spent more than Tk500 crore on basic infrastructure at the park, while companies have invested around $283 million, equivalent to about Tk3,245 crore.

"If a proper business ecosystem is developed, the park could generate direct and indirect employment for around one lakh people," Anam said.

The statement said three mobile phone manufacturers, including Honor and Xiaomi, two laptop manufacturers, one ATM and cash recycler manufacturer, six fibre-optic cable manufacturers and three automobile manufacturers, including Hyundai, are operating at the park.

The park also produces IoT devices, routers, switches, CCTV equipment, air conditioners, refrigerators, home appliances, kidney dialysis machines, kiosks and ATM machines. Two companies are setting up data centres.

The government is preparing further measures to attract investment to hi-tech parks, including duty and tax benefits on capital machinery, VAT benefits on electricity and gas, and incentives for assemblers and emerging technology sectors.

Anam said long-term and predictable policy benefits alongside improved infrastructure could increase local production, reduce import dependence, expand exports and generate skilled employment.

He said the country's first hi-tech park was approved in February 2004 on 231.65 acres in Kaliakair. Another 97.33 acres were added in 2016.

Brent crude oil climbed more than $1 a barrel on Friday over ongoing uncertainty about the negotiations in progress that determine control of, and reopen, the key shipping artery of the Strait of Hormuz.

Brent crude futures settled at $83.55 a barrel, gaining $1.06, or 1.3 percent. West Texas Intermediate futures finished at $78.18 a barrel, up 89 cents, or 1.15 percent.

Oil futures settled more than $3 a barrel higher on Thursday as Iran reviewed a bill to ban US and Israeli vessels from the Strait of Hormuz, through which roughly a fifth of the world’s oil and liquefied natural gas normally passed before the war began at the end of February.

Oil prices fell earlier in the week as a possible solution to the conflict looked more likely, part of an on-again, off-again pattern that has persisted since the US and Israel jointly struck the nation in late February, igniting a conflict that has now stretched into a sixth month. Brent was on course for a weekly loss of more than 8 percent, while WTI lost more than 7 percent.

While this week's signals on a potential deal have sent a roller-coaster ride in market sentiment, the market remains in the dark as to what needs to happen for the agreement to be clinched, said Vandana Hari, founder of oil market analysis provider Vanda Insights.

"The market is trying to assess if an Iran-Oman agreement would allow a US-flagged vessel to transit the Strait of Hormuz," said Andrew Lipow, president of Lipow Oil Associates.

"Would it allow a US-owned vessel to go through? Would it allow a vessel headed for a US port to go through?"

Both Iran and Oman are said to have agreed on the route ships would take through the strait, which lies between their two countries. It is unclear if the US will agree to these terms.

Analysts also said that this week's developments have signalled that hostilities between Iran and the US are not yet over.

Iran is seeking fees of between 5 percent and 7 percent of the price of cargoes from ships using the strait, a senior Iranian official said.

Oman, meanwhile, is discussing fees of about 3 percent while Washington wants no fees at all.

"The longer the supply disruption goes, the longer the world's commercial reserves are being drawn down," he said.

Four industry sources have said the proposed deal is not easily workable because of US sanctions and restrictive insurance clauses on any payments.

"The structure of the Iran-Oman agreement in its current form and the power it yields to Iran is nothing that (US President Donald) Trump can accept politically," said Bjarne Schieldrop at SEB Research.

"Trump would face heavy political criticism at home if he did."

"We need that strait to be reopened fully," said John Kilduff, partner with Again Capital.

The continued uncertainty about the outcome of the war and the timing of its end keeps traders very anxious, Kilduff said.

Private-sector credit growth fell to a historic low of 4.47 percent in June, below Bangladesh Bank’s 5.5 percent target for the month.

The rate was 4.98 percent in May and 4.75 percent in April. In March, it had already hit a record monthly low of 4.72 percent.

Bangladesh Bank spokesperson Arief Hossain Khan said the central bank had cut its policy rate and begun implementing incentive packages to boost lending and economic activity.

But businesses say the energy crisis is choking demand.

Bangladesh Knitwear Manufacturers and Exporters Association President Mohammad Hatem said many factories were operating at less than half capacity, with some down to one-third.

“Buyers have started reducing orders until the situation improves. In this situation, there will be no demand for new loans,” he told bdnews24.com.

Outstanding private-sector credit stood at Tk 18.26 trillion in June, up 4.47 percent from Tk 17.48 trillion a year earlier.

Analysts say banks are accumulating liquidity as lending slows, while energy uncertainty keeps investment subdued and the economy struggles to regain momentum.

Bangladesh Bank’s latest quarterly report attributed weak credit demand partly to slowing economic activity and rising bad loans, which have crossed 32 percent, making banks more cautious about new lending.

Shahjalal Islami Bank Managing Director Mosleh Uddin Ahmed said high interest rates also mattered, but the energy crisis remained the main concern.

BIBM Director General Ejazul Islam said lower credit growth would not necessarily be harmful if lending flowed into productive sectors.