The National Board of Revenue (NBR) plans to collect more than four out of every five taka in income tax through tax deducted at source and advance income tax (AIT) in the current fiscal year, extending a strategy that already delivered over 85 percent of income tax collection in FY2025-26.

The NBR is targeting 56 percent growth in income tax collection over FY26’s actual receipts and is counting on Tk 1.86 lakh crore from source tax and AIT combined, backed by tighter monitoring and enforcement, according to officials familiar with the matter.

Of that, Tk 1.54 lakh crore is expected from source tax, a 51 percent rise over last year’s collection, and Tk 32,000 crore from AIT, up 54 percent year-on-year.

NBR officials presented the strategy, which aims to secure 83 percent of income tax from source tax and AIT, to Rashed Al Mahmud Titumir, adviser to the prime minister on finance and planning, at an internal meeting on Monday.

The target underscores the scale of the challenge facing Bangladesh, which has one of the lowest tax-to-GDP ratios in South Asia, limiting the government’s ability to fund development spending and social protection without resorting to more borrowing. The NBR has set a longer-term goal of lifting the ratio to 15 percent by 2030, with a 10 percent milestone in the medium term.

To get there, the authority is pushing to modernise tax administration through end-to-end automation and a “faceless” system meant to limit direct interaction between taxpayers and officials, with the aim of improving transparency and compliance.

As part of the initiative, the income tax, VAT and customs wings will be digitally integrated. Officials say this will allow the NBR to cross-match data from government agencies and third-party sources to identify high earners and businesses currently outside the tax net, without raising tax rates.

Revenue officials expect automation to improve taxpayer services while strengthening enforcement. A fully digital filing and assessment process is also expected to reduce discretionary decision-making and enhance administrative efficiency.

The NBR is also tightening arrears recovery, instructing field offices to recover at least 80 percent of outstanding tax arrears, and is targeting Tk 3,000 crore in travel tax collection, about 41 percent higher than last year’s actual figure.

Additional revenue is expected from stronger enforcement against evasion, reopening closed tax cases, and faster resolution through Alternative Dispute Resolution and pending High Court cases, officials added.

“We are optimistic that tax collection will increase from the various measures introduced in the last budget,” an NBR official said yesterday. “For example, the 0.20 percent business-to-business tax deducted at source and the advance income tax on vehicles have already started contributing to revenue.”

But economists and business leaders have long argued that the growing reliance on source tax burdens businesses, raising operating costs and adding to inflationary pressure.

A study by the Business Initiative Leading Development (BUILD), a public-private dialogue platform, found that source tax is imposed under 111 separate provisions, 40 of which are entirely non-refundable. Even among the 71 provisions that are technically refundable, businesses have recovered just 0.29 percent of taxes deducted. This means 99.71 percent of source tax effectively functions in practice as a minimum tax rather than an adjustable advance payment, the study found.

BUILD argues businesses pass this unrecoverable cost on to consumers through higher prices, compounding inflation.

Asia boosted imports of thermal coal for a third straight month in July as major buyers such as China, Japan and South Korea bought more of the fuel to meet peak summer demand.

Asia, which buys about 90 percent of global seaborne thermal coal, is expected to import 73.16 million metric tons in July, up from 70.31 million in June and also above the 71.04 million from July last year, according to data compiled by commodity analysts Kpler.
Thermal coal, used mainly to generate electricity, is experiencing stronger demand in Asia this year as it remains a cheaper alternative to liquefied natural gas. The Iran war has largely cut off shipments from Qatar, supplier of about 20 percent of the world’s LNG, leading to a surge in spot prices.China, the world’s biggest coal importer, is leading the charge, with data from analysts DBX Commodities showing thermal coal arrivals of 28.14 million tons in July, the most this year and up from 25.67 million in June and 24.1 million in July 2025. Thermal coal doesn’t compete with LNG in China as far as power generation is concerned.

Rather, the increase in imports is being driven by constrained domestic output coupled with rising electricity generation.

China’s coal production dropped 9.7 percent in June from a year earlier to 380.88 million tons after safety inspections in the wake of the deaths of 82 people in a mine accident in Shanxi province on May 22, the country’s worst mining disaster in 17 years.

China’s thermal power generation, which is overwhelmingly coal with only a small amount of natural gas, rose 0.5 percent in June and 2.9 percent in the first six months of the year, according to official data. While China’s domestic coal output is expected to pick up in coming months, import levels may remain strong.

That’s because thermal generation is expected to grow in 2026 as the deployment of renewables, while rapid, isn’t enough to meet an expected 5 percent rise in total electricity demand this year.

Japan, the world’s third-biggest coal importer, is expected to see arrivals of 10.46 million tons of thermal coal in July, according to DBX, up from 7.51 million in June and the highest since January.

South Korea, the fourth-biggest buyer, is on track for imports of 8.54 million tons in July, up from 6.08 million in June and the highest since August last year.

The stronger demand is helping drive prices with the weekly index for 6,000 kilocalorie per kilogram (kcal/kg) Australian thermal coal at Newcastle Port reaching a four-week high of $132.76 a ton in the seven days to July 24, according to prices compiled by globalCOAL.

This grade is mainly bought by Japan and South Korea, while China favours lower-grade fuel from top exporter Indonesia as well as from other exporters such as Russia and Australia.

Singapore Exchange contracts for Indonesian coal with an energy content of 4,200 kcal/kg ended at $61.97 a ton on Monday, down from the recent three-year high of $65.77 on June 26, but still up 38 percent from the low so far this year of $45.00 from early January.

Price rises help explain why one major importer isn’t buying more.

India, the second-biggest importer, is expected to see arrivals of seaborne thermal coal drop to 10.88 million tons in July, down from 12.3 million in June and the lowest since August last year.

India would probably want to import more coal if prices were lower, given record high electricity demand amid the absence of stronger monsoon rains.

This has led to strain on domestic coal supplies, with coal stocks at power plants dropping to just 14 days of operation as of mid-July, when they are more typically between three and four weeks’ worth of inventories.

The recent easing in prices for Indonesian coal, which is favoured by India’s utilities, may lift import demand in coming weeks, but it would likely take a more sustained drop for imports to rise substantially.

The Bangladesh Bank has verbally instructed commercial banks not to buy dollars from the interbank market and remittance channels at rates exceeding Tk123.82 as rising demand for import payments puts pressure on the foreign exchange market.

Senior officials of several banks confirmed the matter to The Business Standard. While the interbank dollar rate is around Tk123.82, banks are unable to purchase remittance dollars below Tk123.90-Tk123.95, according to bankers.

Rate guidance raises market concerns

Several bankers said many banks were reluctant to trade at the capped interbank rate of Tk123.82. They argued that fixing the exchange rate prevents the interbank market from becoming fully functional and that allowing market-based price discovery, even if the rate rises above Tk124, would make the market more effective.

A senior Bangladesh Bank official told The Business Standard that the central bank is trying to keep the dollar rate at a lower level.

However, the International Monetary Fund and other development partners have repeatedly recommended that Bangladesh maintain a market-based exchange rate regime.

The dollar rate has been rising since late June. Many commercial banks settled letters of credit (LCs) at Tk123.95 on Monday.

The IMF mission visited Dhaka this month to begin preliminary discussions on a new lending programme.

Economists said Bangladesh would need to comply with IMF conditions to secure a new programme. Under the previous $4.7 billion IMF programme, one of the key conditions was making the exchange rate market-based and limiting central bank intervention.

Bangladesh is now moving towards a new lending arrangement with the IMF after completing the previous programme. Economists believe the new programme may include conditions requiring limited central bank intervention by the central bank in determining the exchange rate.

Former Bangladesh Bank governor Ahsan H Mansur told TBS that the central bank should move away from the practice of intervening in the foreign exchange market to keep the dollar rate artificially low.

"The dollar rate should be market-based. Even if it crosses Tk124, it should be allowed to adjust. The policy of fixing the exchange rate is not correct," he said.

Mansur added that such controls could push up rates in the curb market and create instability across the foreign exchange market. He also noted that the gap between curb market rates and rates offered through banking channels had widened.

Dollar demand rises

A senior Bangladesh Bank official said government LC payment pressure has increased this week, creating some pressure on the dollar market.

According to Bangladesh Bank's Economic Indicators report, import settlements through LCs reached $70.4 billion in FY26, marginally higher than $70.3 billion in the previous fiscal year, representing only 0.09% year-on-year growth.

Meanwhile, remittance inflows in June were the lowest in eight months.

A senior official of a private bank said dollar outflows are currently higher than inflows, creating some pressure on the foreign exchange market.

The central bank has also suspended dollar purchases from banks for the past one and a half months amid pressure on the taka to depreciate. In FY26, the Bangladesh Bank purchased $6.4 billion when the taka was under appreciation pressure. Its last dollar purchase was on 4 June.

A senior commercial banker said the dollar market became highly volatile in late 2022 and warned that any central bank intervention should be carefully assessed to ensure it does not create further instability.

Bangladesh has sought Japan's support to help ensure the third terminal of Hazrat Shahjalal International Airport (HSIA) becomes operational on 16 December, as the government pushes ahead with preparations to meet the target date.

The request was made during a courtesy meeting between Civil Aviation and Tourism Minister Afroza Khanam, State Minister M Rashiduzzaman Millat and Japanese Prime Minister's Special Adviser Uno Yoshimasa at the Bangladesh Secretariat today (28 July), according to a press release.

During the meeting, Afroza said the government is working to inaugurate the terminal on 16 December in line with the prime minister's directive.
She said all necessary preparations would be completed on schedule to make the opening possible.

Millat stressed the need to launch the Operational Readiness and Airport Transfer (ORAT) programme, describing it as essential to meeting the planned inauguration date.

He said the Japanese Stakeholder Working Group should complete the tender submission process next month so ORAT activities can begin without further delay.

Describing Japan as one of Bangladesh's most reliable and longstanding development partners, Millat acknowledged the contribution of Japanese companies to the construction of the third terminal.

He also sought Tokyo's continued cooperation to ensure the facility is ready for public use by mid-December.

Uno reaffirmed Japan's commitment to strengthening bilateral cooperation and expressed confidence that Japanese support for major development projects, including the HSIA third terminal, would continue.

The two sides also discussed the longstanding Bangladesh-Japan partnership and Japan's role in supporting Bangladesh's infrastructure development.

The third terminal has remained idle for nearly 19 months because of disagreements over management and revenue sharing between the Civil Aviation Authority of Bangladesh and the Japanese consortium comprising Japan Airport Terminal Company, Sumitomo Corporation, Nippon Koei and Narita International Airport Corporation.

Those issues have largely been resolved following a series of negotiations after the BNP-led government took office, allowing preparations for the terminal's opening to move forward.

The government has fast-tracked approval for the import of critical spare parts for the damaged Excelerate Energy floating LNG terminal, aiming to restore operations as quickly as possible following severe disruptions to the country's gas supply after the recent fire incident.

Excelerate Energy sought permission yesterday through Petrobangla to import the spare parts needed to replace the damaged equipment. The Energy and Mineral Resources Division approved the request promptly the same day.

The division also instructed the Office of the Chief Controller of Imports and Exports to issue the import permit within one hour of receiving the application in an effort to expedite the restoration of the country's gas supply.

The emergency import initiative comes seven days after the 21 July fire, which severely damaged multiple cable systems connected to the floating storage and regasification unit (FSRU)'s two boilers, forcing a reduction of 450 million cubic feet per day (mmcfd) of gas supply from the national grid, disrupting supplies to households, industries and compressed natural gas (CNG) filling stations.

Mohammad Mahmudul Haq, Controller (In-charge) of the Office of the Chief Controller of Imports and Exports, told The Business Standard, "We approved Excelerate's import application on an emergency basis."

In a letter issued yesterday, the Energy and Mineral Resources Division said the fire caused extensive damage to critical boiler-related cable systems, forcing the operator to source replacement equipment from abroad.

According to the letter, the import permit covers one permanent consignment comprising 10 packages of spare parts required for the operation and maintenance of the Excelerate Energy Bangladesh Limited-operated floating LNG terminal.

The spare parts will be imported from Finland, Spain and Türkiye.

The floating LNG terminal supplies regasified LNG to the national gas grid under the Implementation Agreement and Terminal Use Agreement signed between the government and Excelerate Energy Bangladesh Limited.

Under these agreements, Excelerate Energy is responsible for the regular maintenance of the terminal and imports specialised equipment and components from overseas as required.

As part of efforts to resume operations quickly, the ministry also held a meeting on Monday with Excelerate Energy Regional Vice-President Aziz Kassim.

The US-based Excelerate Energy-operated FSRU normally supplies around 500-550mmcfd of gas to the national grid, accounting for a significant share of Bangladesh's imported LNG supply.

Aninda Islam Amit said yesterday that the FSRU is expected to resume supplying around 280-300mmcfd of gas to the national grid from next week, although full restoration will take additional time.

Meanwhile, Titas Gas Transmission and Distribution PLC warned in a statement posted on its official Facebook page yesterday that consumers across its franchise areas will continue to experience severe low gas pressure until the country's LNG supply situation improves.

Civil Aviation and Tourism Minister Afroza Khanam said the government is working to establish Bangladesh as a regional aviation hub linking South Asia with the wider world through improved airport infrastructure and expanded international air connectivity.

Speaking as the chief guest at the "Saudia and HSBC: Powering Global Connectivity – Celebrating Saudia's Journey in Bangladesh" event at a hotel in the capital yesterday (28 July), she said Bangladesh is entering a new era in aviation under the leadership of Prime Minister Tarique Rahman.

"We are building modern airport infrastructure, improving passenger services and expanding Bangladesh's air connectivity with the rest of the world," she said.

"Our goal is to establish Bangladesh as a regional aviation hub that will connect South Asia with the wider world. In this journey, we warmly welcome international airlines, financial institutions and strategic investors."

Highlighting Saudia's long presence in Bangladesh, the minister said the Saudi flag carrier has been operating in the country for 46 years, connecting large numbers of passengers, facilitating overseas travel for Bangladeshi workers and ensuring safe and reliable transportation for Hajj and Umrah pilgrims.

"Saudia has established itself not only as an airline, but also as an important bridge of friendship between Bangladesh and Saudi Arabia," she said.

Special Assistant to the Prime Minister on Investment and Capital Market Affairs Tanvir Ghani, Saudi Ambassador to Bangladesh Dr Abdullah ibn Dhafer ibn Ubayya, and senior officials from Saudia, HSBC Bank and other organisations attended the event.

Speakers stressed the need to further strengthen air connectivity, trade, investment, tourism and people-to-people ties between Bangladesh and Saudi Arabia. They also discussed the aviation sector's growing role in expanding global connectivity and the prospects for future cooperation.

City Bank has reported a consolidated net profit of Tk526 crore for the first half (H1) of 2026, marking a strong improvement in financial performance compared with the same period last year.

According to the bank's price-sensitive information, its consolidated earnings per share (EPS) rose to Tk3.01 from Tk1.72 a year earlier.

Quarterly (April–June) EPS also increased to Tk1.63 from Tk1.19.

Net asset value (NAV) per share climbed to Tk37.6 from Tk35.37, while net operating cash flow per share surged to Tk44.2 from Tk13.94.

The bank attributed the higher profit primarily to increased investment income, along with stronger commission and fee income, reflecting improved profitability and operational performance during the reporting period.

The National Bank PLC has reported a staggering consolidated net loss of Tk2,286 crore for the first half (January-June) of 2026, as the lender continues to grapple with non-recovery of loans and a deepening capital crisis.

According to the bank's latest financial statements filed on the Dhaka Stock Exchange (DSE), the loss for the first six months of 2026 has more than doubled compared to the same period last year.

The bank's consolidated earnings per share (EPS) for the first half of the year plummeted to negative Tk7.10, a sharp decline from the negative Tk3.06 recorded in the corresponding period of 2025. The second quarter (April–June) alone accounted for a loss per share of Tk3.58.

The financial health of the bank has reached a critical stage, with its consolidated Net Asset Value (NAV) per share dropping to negative Tk14.49 as of 30 June 2026. This is a significant deterioration from the negative Tk1.91 reported a year earlier, indicating that the bank's liabilities far outweigh its assets.

In its disclosure to the stock exchange, the bank explained that the massive loss is primarily due to its inability to recognise interest income on a vast portion of its loan portfolio.

This includes loans that have been rescheduled with grace periods and delinquent loans where no cash recovery was made. Meanwhile, the bank remained obligated to pay interest on deposits and borrowings, leading to a massive operating deficit.

Lifeline through real estate

In a bid to alleviate the ongoing financial distress, National Bank has recently received special authorisation from Bangladesh Bank to commercially rent out one of its "Twin Tower" buildings currently under construction at the Karwan Bazar intersection in the capital.

Originally intended for the bank's own use, the central bank exercised its special powers to allow the commercialisation of the property. Under the revised plan, one of the towers will serve as the bank's corporate headquarters, while the other will be leased out to commercial tenants.

Bank officials expressed hope that the rental income would provide a steady cash flow to help stabilise the institution's fragile balance sheet.

Russia has proposed settling bilateral trade with Bangladesh in Indian rupees, establishing a dedicated payment infrastructure, and opening a branch of a Russian bank in Dhaka to overcome transaction hurdles caused by US sanctions on Russian banks.

The proposals will be discussed at the upcoming meeting of the Bangladesh-Russia Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation, which is expected to be held in September or October, according to officials at the Economic Relations Division (ERD).

The ERD is scheduled to hold a preparatory meeting today to finalise Bangladesh's agenda ahead of the bilateral talks.

Russia seeks alternative payment mechanism

According to ERD officials, Russia has proposed settling transactions with Bangladesh in Indian rupees after US sanctions imposed on Russian banks following the outbreak of the Russia-Ukraine war disrupted conventional payment channels.

Moscow has also proposed establishing a bilateral payment infrastructure to facilitate financial transactions between the two countries and has renewed its proposal to open a branch of a Russian bank in Bangladesh.

Russia had made a similar proposal during the previous Awami League government, but the initiative did not progress after the Bangladesh Bank sought the opinion of the Ministry of Foreign Affairs.

Bangladesh has been unable to transfer loan repayments for the Russian-financed Rooppur Nuclear Power Plant project because of sanctions on Russian banks. Russia initially proposed repayment in Chinese yuan, but banks in both China and Bangladesh reportedly declined to participate due to concerns over possible exposure to US sanctions.

As an interim arrangement, Bangladesh has been depositing loan instalments into a Russian account maintained at Sonali Bank. However, the funds cannot be transferred onward to Russian banks because of the sanctions.

Russia's latest proposal comes as India and Russia already conduct part of their bilateral trade in Indian rupees despite not having a currency swap agreement. Bangladesh also conducts trade with India in Indian rupees alongside the US dollar and other foreign currencies.

According to ERD officials, Bangladesh had earlier proposed that Russia invest the loan repayment funds accumulated in its Sonali Bank account within Bangladesh, but Moscow did not accept the proposal.

Trade expansion and investment

Russia has proposed expanding and diversifying bilateral trade, including establishing a Russia-Bangladesh Business Council and developing a registry of reliable Bangladeshi textile suppliers for Russian importers.

The Russian side has also proposed strengthening cooperation between small and medium-sized enterprises and assisting Bangladesh in establishing special economic zones.

Although Russia supported Bangladesh during the Liberation War, Bangladesh's exports to the Russian market remain limited despite significant potential. Before the Russia-Ukraine war, Bangladesh's annual exports to Russia exceeded $500 million, but exports have declined since the conflict began.

According to Export Promotion Bureau data, Bangladesh exported goods worth $245 million to Russia during the July-May period of the current fiscal year.

Bangladesh continues to import fertiliser, wheat and other commodities from Russia.

Bangladesh's priorities

ERD officials said Bangladesh will place its highest priority on securing Russian technology transfer during the upcoming commission meeting.

Dhaka will seek closer cooperation in renewable energy, power generation and the broader energy sector, alongside collaboration in e-commerce, the digital economy and innovation.

Bangladesh will also seek joint initiatives in agriculture, food security and agro-processing industries, as well as cooperation in technical and vocational education, skills development, connectivity and logistics.

The Bangladesh-Russia Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation was established in 2017 as the principal bilateral platform for promoting economic cooperation, energy projects and trade.

Its most recent formal meeting was held virtually on 15 March 2023, following earlier sessions in Moscow in 2018, Dhaka in 2019 and another virtual meeting in December 2021.

Russia offers discounted urea fertiliser

Separately, Russia has reaffirmed its commitment to strengthening Bangladesh's food security and expanding bilateral trade, while Bangladesh has expressed interest in importing urea fertiliser and other essential food commodities at competitive prices.

According to a press release issued by the commerce ministry, the issues were discussed yesterday during a meeting between Commerce Minister Khandakar Abdul Muqtadir and a Russian delegation led by Chargé d'Affaires Vyacheslav Sentyurin at the Secretariat.

The Bangladeshi side praised Russia's continued supply of wheat and muriate of potash fertiliser, describing it as important for ensuring the country's food security.

The Russian delegation expressed interest in supplying about 2.8 lakh tonnes of urea fertiliser to Bangladesh Chemical Industries Corporation under a government-to-government arrangement. The delegation proposed supplying the fertiliser at $10 per tonne below prevailing international market prices.

The two sides also discussed expanding cooperation under the existing memorandum of understanding between the Trading Corporation of Bangladesh and JSC FEC Prodintorg for the supply of essential commodities.

Russia further expressed interest in supplying sunflower oil, yellow peas, chickpeas, red lentils and green lentils to Bangladesh.

Muqtadir welcomed Russia's interest in expanding bilateral trade and said Bangladesh is committed to increasing trade, investment and economic cooperation on the basis of mutual benefit.

The country's capital market witnessed a strong bullish surge today (28 July) as the benchmark index reclaimed the psychological threshold of 5,900 points after a gap of two weeks.

Driven by a wave of bargain hunting and renewed investor confidence, market participation saw a significant spike, with daily turnover jumping by 45% to reach Tk1,261 crore. The broad DSEX index of the Dhaka Stock Exchange (DSE) rose by 60 points, or 1.03%, to settle the session at exactly 5,900.

According to the daily market review by EBL Securities, the capital market extended its upward trajectory for a second consecutive session. The rally was primarily fueled by a perceived pause in retaliatory actions in the Middle East conflict and high expectations of favourable sector-specific earnings during the ongoing disclosure season.

While the market opened with steady gains, broad-based buying interest gained significant traction after the mid-session as renewed accumulation in the majority of scrips propelled the benchmark higher, said EBL Securities.

Sheltech Brokerage Limited noted that the day's performance was largely shaped by sustained buying interest supported by latest quarterly earnings announcements from December-closing companies that surpassed market expectations.

Although the market traded within a narrow range during the early hours, momentum strengthened around the mid-session, lifting the DSEX to an intraday high of 5,909.79 points. Despite a bout of orderly profit-taking that emerged late in the day, the buying pressure remained sufficiently strong to absorb the sell-offs, allowing the index to retain the bulk of its gains, it added.

The blue-chip segment also mirrored the positive sentiment, with the DS30 index gaining 17 points to close at 2,219.

Market breadth was overwhelmingly positive, as 284 issues managed to advance compared to only 60 that declined, while 49 scrips remained unchanged on the DSE floor.

On the liquidity front, Dominage Steel emerged as the most traded stock, followed by Saiham Cotton, ITC, Sharp Industries, and Indo-Bangla Pharmaceuticals.

Individual stock performance was highlighted by FAS Finance and New Line Clothings, both of which hit the 10% upper circuit limit. Other top gainers included Argon Denims, Dominage Steel, and Acme Pesticides.

On the flip side, AIBL First Mutual Fund, Shyampur Sugar, and Zeal Bangla Sugar were among the few losers of the session.

The bullish sentiment was mirrored at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) ended 78 points higher at 9,595 and the CASPI rose 134 points to reach 15,738. Notably, turnover at the port city bourse witnessed a massive 287% jump, settling at Tk64.48 crore.

S&P Global Ratings has revised Bangladesh's long-term sovereign credit outlook from stable to negative, citing persistent banking sector weaknesses, sticky inflation and uncertainty in global energy markets.Infrastructure project reports

The agency, however, affirmed Bangladesh's sovereign credit ratings at 'B+/B'.

S&P said the country's economic recovery faces mounting pressure as structural problems in the banking sector continue to weigh on private sector lending and growth.

It forecast Bangladesh's real GDP growth to average around 4.5 per cent over the next three years, significantly below the country's historical pace.

The rating agency also noted that Bangladesh's 10-year weighted average real per capita GDP growth had fallen to 3.3 per cent, from 5.8 per cent in 2022.

Despite the downgrade in outlook, S&P said the country's external position had improved.

Foreign exchange reserves recovered to $32.9 billion by the end of FY2026, supported by a 19 per cent rise in remittances, providing about 4.5 months of import cover.

However, it warned that volatile global energy prices, West Asia trade disruptions and weaker garment exports could put renewed pressure on the economy.

Readymade garment exports fell 2.6 per cent in the first 11 months of FY2026.

S&P also highlighted Bangladesh's low tax-to-GDP ratio and rising debt-servicing costs, saying interest payments now consume nearly 30 per cent of government revenue.

The agency said failure to strengthen growth and stabilise external debt could lead to a future credit rating downgrade.

Confidence Infrastructure plans to raise Tk300 crore through an initial public offering (IPO) to finance electric vehicle (EV) battery production, business expansion, debt repayment and investments in new sectors, including food.

The company has appointed UCB Investment Limited as issue manager for the proposed IPO. The two companies signed the issue management agreement on Tuesday at Confidence Infrastructure's corporate headquarters in Dhaka. The agreement was signed by Imran Karim, chairman of Confidence Infrastructure, and Tanzim Alamgir, managing director and chief executive officer of UCB Investment.

Speaking to The Business Standard, Karim said the group's affiliate, Confidence Batteries Limited, currently manufactures lead-acid batteries for the automotive, industrial, telecommunications, solar power and backup power sectors. The company now plans to enter EV battery manufacturing to meet growing domestic demand, reduce import dependence and build local capabilities in advanced battery production.

The company is targeting the electric motorcycle, three-wheeler, passenger car, bus and energy storage system markets. It also plans to invest part of the IPO proceeds in modern food production, processing and supply chains as part of its strategy to diversify into high-growth sectors.

Subject to regulatory approval, UCB Investment will provide due diligence, financial and legal reviews, prospectus preparation and other IPO advisory services.

According to company officials, the IPO proceeds will finance EV battery manufacturing, new infrastructure and energy projects, debt repayment and investments in the food business.

Confidence Infrastructure reported Tk3,606 crore in consolidated revenue and Tk275 crore in net profit for FY25, with earnings per share of Tk19.92. It has a paid-up capital of Tk138.12 crore and an authorised capital of Tk500 crore.

The company operates across infrastructure development, manufacturing, storage, electricity, power generation, telecommunications and paint production. Its planned expansion into EV batteries is aimed at strengthening its position in the clean energy and future mobility market.

Confidence Group already has a listed company – Confidence Cement PLC, which has been trading on the Dhaka Stock Exchange since 1995. The cement maker recently declared a 10% cash dividend for FY25, reported Tk97 crore in net profit and was trading at around Tk69.10 per share. If approved, Confidence Infrastructure will become the group's second listed company.

Capital market analysts say large industrial IPOs have become increasingly rare, limiting investment opportunities in fundamentally strong companies. They believe Confidence Infrastructure's listing would deepen the market, while its planned investment in EV battery manufacturing could strengthen future earnings and support Bangladesh's emerging electric vehicle supply chain.

The IPO is subject to approval by the Bangladesh Securities and Exchange Commission (BSEC), which will review the company's audited financial statements, due diligence reports, prospectus, asset valuation and proposed use of proceeds before granting approval.

Confidence Infrastructure PLC, a member of Confidence Group, has decided to enter the capital market through an Initial Public Offering (IPO), appointing UCB Investment as the issue manager for the proposed IPO.

The company has signed an issue management agreement with UCB Investment, one of the country’s leading merchant banks, to manage its proposed IPO.

The agreement was signed at the corporate office of Confidence Infrastructure in Dhaka. Tanzim Alamgir, Managing Director and CEO of UCB Investment Limited, and Imran Karim, Chairman of Confidence Infrastructure PLC, signed the agreement on behalf of their respective organisations, according to a press release.

Under the agreement, UCB Investment will provide comprehensive issue management and advisory services for Confidence Infrastructure’s proposed IPO.

Officials from both organisations expressed optimism that the partnership would help ensure successful execution of the IPO and support the company’s long-term growth and expansion plans.

Senior officials from UCB Investment Limited and Confidence Infrastructure PLC were present at the signing ceremony.

Robi Axiata PLC, the country's second-largest mobile telecom operator, has reported a robust 29% year-on-year growth in consolidated net profit, reaching Tk495 crore during the first half (January-June) of 2026.

The company's board of directors approved the unaudited financial statements today (28 July), which showed that the bottom-line surge was supported by a 7% increase in total revenue, amounting to Tk5,243 crore for the six-month period.

The company's earnings per share (EPS) for the first half improved to Tk0.95.

In the second quarter alone, spanning April to June, Robi recorded a revenue of Tk2,711 crore, marking a 6% increase from the same period last year. Quarterly net profit rose by 2% to Tk262.9 crore, with an EPS of Tk0.50.

Robi, which made its debut on the Dhaka bourse in 2020, currently maintains a market capitalisation of Tk17,075 crore.

The company's shareholding structure remains heavily concentrated, with sponsors and directors holding a 90% stake, while institutional and general investors hold 3.09% and 6.91%, respectively.

For the 2025 financial year, the operator had disbursed a 17.50% cash dividend following a net profit of Tk937 crore.

Robi's shares closed at Tk32.60 on the Dhaka Stock Exchange today.

Turkish company Sanko wants to invest $300 million in the economic zone in Mirsarai, Chattogram, to build an integrated textile production facility for both the domestic and international markets.

A Sanko team expressed this interest at a meeting with Commerce Minister Khandakar Abdul Muktadir at his Secretariat office in Dhaka today.

Currently, the company supplies fabrics for garment manufacturing from Turkey, but it wants to expand its business in Bangladesh by setting up a factory to produce value-added fabrics.

The company wants to begin operations within the next 12 to 18 months if the necessary facilities are ensured by the government, as the site has already been selected, according to a statement from the commerce ministry.

BRAC Bank PLC reported a 57% year-on-year increase in consolidated net profit for the first half of 2026, supported by higher net interest income and investment income.

According to the bank's unaudited financial statements, approved at a board meeting held today (28 July), consolidated net profit after tax rose to Tk1,423 crore during the January-June period.

The bank's consolidated earnings per share (EPS) stood at Tk5.07, while its consolidated net asset value (NAV) per share increased to Tk49.38 as of 30 June 2026, up from Tk44.84 a year earlier.

The bank's performance strengthened further in the second quarter.

For the April-June period, consolidated net profit climbed 73% year-on-year to Tk727.74 crore, while second-quarter EPS stood at Tk2.55.

BRAC Bank said the strong earnings growth was primarily driven by increased net interest income and investment income.

Speaking to The Business Standard, BRAC Bank Managing Director and CEO Tareq Refat Ullah Khan said the bank currently manages a combined fund of nearly Tk1.70 lakh crore, including deposits and assets.

"Our portfolio is expanding every year," he said.

"Over the past year, our deposits grew by nearly 25%, surpassing Tk95,000 crore. During the same period, our assets expanded by around 18%, crossing Tk76,000 crore. In other words, BRAC Bank has achieved growth well above the market average in both deposits and assets."

He added that the bank's operational efficiency had improved significantly, reducing its cost-to-income ratio from 48% to 42%.

The bank also expanded its business across its corporate, SME and retail segments, strengthening its balance sheet.

Khan said the bank's non-performing loan (NPL) ratio declined to 2.03% from 2.27% over the past six months.

"The combined effect of all these factors has driven our profit growth," he said.

Market analysts attributed the strong first-half performance to BRAC Bank's continued leadership in the SME lending segment, strategic expansion of its digital banking operations and efficient management of interest margins despite a challenging macroeconomic environment.

The bank has also remained a preferred choice for local and foreign institutional investors due to its strong corporate governance and asset quality.

BRAC Bank became the first local private commercial bank to post an annual net profit of more than Tk2,000 crore in 2025. Its latest half-yearly results indicate that the lender remains on track to deliver another record financial performance by the end of 2026.

A Chinese firm is set to construct a floating LNG (liquefied natural gas) terminal at Moheshkhali in Cox's Bazar.

The Cabinet Committee on Economic Affairs today gave in-principle approval to process a proposal submitted by China National Energy Engineering and Construction Company Limited for setting up the LNG storage and regasification terminal under a government-to-government (G2G) arrangement.

Finance Minister Amir Khosru Mahmud Chowdhury chaired the meeting held at the Secretariat.

According to a Finance Ministry statement, the proposal will be processed under the G2G method in accordance with Section 68 of the Public Procurement Act, 2006, and Rules 99(2) and 107(2) of the Public Procurement Rules, 2025.

At the same meeting, the committee also gave in-principle approval to a proposal for importing LNG on both a short- and long-term basis from US-based Gunvor USA LLC under a G2G framework.

Furthermore, the cabinet body approved a proposal to reduce the deadline for submitting international open tenders for the import of refined petroleum fuel by the Bangladesh Petroleum Corporation from 42 days to 21 days for the September-December 2026 period.

The approval was given at a time when Bangladesh was suffering from a worsening gas crisis, which is raising operating costs and threatening the country’s export competitiveness.

Gas-dependent sectors, including textiles, spinning, ceramics and fertilisers, are operating below capacity or facing production delays due to low gas supply and weak pipeline pressure, brought on by the shutdown of one of the two floating storage and regasification units on July 21 due to a technical fault.

The shutdown has curtailed the national gas supply by about 450 million cubic feet per day (mmcfd), or 17 percent.

Two open-ended mutual funds managed by VIPB Asset Management Company Limited have announced cash dividends for the fiscal year ended 30 June 2026 after posting strong returns.

At a trustee meeting held yesterday (27 July), the board of trustees approved a 5% cash dividend for the VIPB SEBL 1st Unit Fund and a 4% cash dividend for the VIPB NLI 1st Unit Fund.

According to a press release, both funds delivered robust performance despite market volatility.

The VIPB SEBL 1st Unit Fund generated a total return of 19.3% during FY26, comprising 14.3% growth in net asset value (NAV) and a 5% cash dividend.

The VIPB NLI 1st Unit Fund posted a total return of 19.8%, driven by 15.8% NAV growth and a 4% dividend payout.

The Investment Corporation of Bangladesh (ICB) serves as the trustee and custodian of both funds.

Southeast Bank PLC is the sponsor of the VIPB SEBL 1st Unit Fund, while National Life Insurance PLC sponsors the VIPB NLI 1st Unit Fund.

VIPB Asset Management said both funds were among the first in Bangladesh's mutual fund industry to successfully transition from closed-ended to open-ended structures.

The VIPB SEBL 1st Unit Fund, launched in 2011 as the Southeast Bank 1st Mutual Fund, was converted to an open-ended fund in 2021 after 99.23% of unit holders voted in favour of the move.

The VIPB NLI 1st Unit Fund, introduced in 2012, was converted in 2022 with 99.93% support from unit holders.

The asset manager said the funds' performance was driven by a disciplined asset allocation strategy focused on concentrated investments in undervalued blue-chip equities, treasury bonds and high-quality corporate bonds to maximise risk-adjusted returns.

"VIPB Asset Management remains dedicated to value investing, rigorous risk management and strong corporate governance," the company said, adding that it remains committed to creating long-term value for investors while maintaining its fiduciary responsibilities.

A worsening gas crisis has significantly slashed domestic production of paracetamol API (Active Pharmaceutical Ingredient) while also severely disrupting production at factories across Bangladesh’s manufacturing sector.

Although emergency imports are preventing medicine shortages, higher paracetamol API prices are raising costs for drugmakers and highlighting the country’s heavy dependence on imported pharmaceutical raw materials.
According to IQVIA (formerly IMS Health), medicines containing paracetamol are the fourth-highest-selling pharmaceutical product category in Bangladesh.The prolonged gas shortage has brought production at Gonoshasthaya Basic Chemical Ltd, one of Bangladesh’s leading API manufacturers, to a standstill, said its managing director, ABM Jamal Uddin.“Our boiler runs on natural gas. Without the boiler, none of the supporting equipment can operate,” Jamal told The Daily Star.

“The chiller, reactors and other processing units all depend on it. Once the boiler stops, the entire factory comes to a standstill.”

The Tongi-based company, a concern of Gonoshasthaya Kendra, has been unable to produce paracetamol API for the past 15 days, reducing output from four tonnes a day to virtually zero.

The disruption comes as manufacturers grapple with soaring raw material costs. Jamal said the price of the key precursor imported from China has nearly doubled, from about $2,300 a tonne to $4,300, amid global oil market volatility.

“The entire API sector is now under pressure,” he said.As per industry insiders, Bangladesh’s monthly demand for paracetamol API is around 650 tonnes.Before the shutdown, Gonoshasthaya supplied about 90 tonnes a month, with the remainder met through imports and other local manufacturers.Jamal said the company supplies API to most leading pharmaceutical firms, including Beximco, Acme, ACI, Ibn Sina, Healthcare and Incepta. Square is the only major manufacturer that does not source from Gonoshasthaya, as it produces its own paracetamol API. He could not say when production would resume, saying it depends entirely on the restoration of gas supply.

Although Bangladesh manufactures about 98 percent of its finished medicines locally, it imports roughly 95 percent of the APIs used in production, mainly from China and India.

Despite the API Policy adopted in 2018 and the establishment of the API Industrial Park, meaningful import substitution has yet to materialise because of policy, financial, technological and regulatory constraints.

“If these bottlenecks are addressed through coordinated government support, Bangladesh can significantly reduce its dependence on imported APIs,” Jamal said. “The country currently imports around $1.5 billion worth of APIs annually. That bill could be brought down to about $1 billion.”

Md Shah Imran, executive director (procurement) of Beximco Pharmaceuticals PLC, said the company manufactures its own paracetamol API but occasionally buys supplies from Gonoshasthaya.

He said the gas crisis has disrupted Gonoshasthaya’s production, leaving Beximco to rely on its own facilities.

Beximco meets around 70 percent of the country’s paracetamol demand, and a prolonged halt in domestic API production could eventually tighten supplies, he added.

Muhammad Zahangir Alam, chief financial officer of Square Pharmaceuticals, said the company’s active pharmaceutical ingredient (API) plant in Pabna has not been affected by the ongoing gas crisis, as the factory continues to receive an adequate gas supply.

He said Square alone has the capacity to meet around 40 percent of the country’s demand for paracetamol API, helping ensure uninterrupted production of the essential medicine. However, he noted that the company cannot fully offset the supply shortfall caused by production disruptions at other local API manufacturers, forcing many pharmaceutical firms to rely on imports.
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IMPORTS PREVENT SUPPLY DISRUPTION

Abdul Muktadir, president of the Bangladesh Association of Pharmaceutical Industries (BAPI) and chairman and managing director of Incepta Pharmaceuticals Ltd, said the government has been allowing emergency API imports to ensure uninterrupted medicine production.

Md Halimuzzaman, deputy managing director and chief executive officer of Healthcare Pharmaceuticals Ltd, said companies that normally source paracetamol API locally have already begun seeking import approvals.

Under existing rules, the Directorate General of Drug Administration gives priority to locally produced raw materials but allows imports when domestic manufacturers cannot supply them, he said.

Halimuzzaman said pharmaceutical companies typically maintain raw material stocks for two to three months and place import orders well in advance because importing APIs, conducting quality tests and processing them into finished products take considerable time.

“Companies have to strike a balance,” he said. “Importing too little risks disrupting supply, while importing too much can lead to losses if raw materials expire before use.”

GAS CRISIS SPREADS WIDER

One of Bangladesh’s two floating storage and regasification units (FSRUs) is out of operation, cutting gas supply by around 450 million cubic feet per day (mmcfd), or about 17 percent of the national supply.

The cause of the technical fault that shut down the US-based Excelerate Energy-operated terminal in Moheshkhali has yet to be identified.

According to Petrobangla, gas supply has fallen to around 2,150 mmcfd from 2,620 mmcfd over the past week, against an estimated daily demand of nearly 3,800 mmcfd.

The shortage has severely disrupted production across Gazipur’s industrial belt, preventing factories from operating at full capacity and delaying export shipments.

Factory officials in Bhogra, Chandana Chowrasta, Rajendrapur and Konabari said low gas pressure had significantly reduced production.

Rokonuzzaman, administration manager of Paragon Ceramics, said the factory has faced an acute gas shortage for more than a month.

“Around 50 industrial establishments in this area are facing the same problem,” he said. The company has resorted to buying compressed natural gas (CNG), although limited availability has made that difficult.

“We have failed to deliver orders on schedule and have already lost several major buyers.”

MM Mamun Ur Rashid, deputy inspector general of the Department of Inspection for Factories and Establishments in Gazipur, said no factory had officially shut down, although production at seven or eight factories had been severely affected.

Shafiul Alam, president of the Gazipur Metropolitan unit of the Bangladesh Garments and Industrial Workers Federation, said workers were already losing overtime income, while some factories could face layoffs if the crisis persists.

Vice-Chairman of Bengal Group Md Jashim Uddin said the company had temporarily shut down two readymade garment factories in Gazipur because of the gas shortage, despite the risk of losing a major denim export order from a European buyer.

“There is no option to switch to air freight because the shipping cost is too high. We have therefore decided to temporarily suspend production,” he said.

The gas shortage has also hit the Narayanganj industrial belt, said Md Fazlul Hoque, managing director of Plummy Fashions Ltd.

“Crisis is there, but we cannot do anything to overcome this. We could use expensive fuel, diesel and industrial LPG, but we will incur huge losses,” said Hoque, also former president of the Bangladesh Knitwear Manufacturers and Exporters Association.

Mohammed Amirul Haque, president of the Chattogram Chamber of Commerce and Industry, said the gas shortage had disrupted production at factories across the country, including in Chattogram.

He said Delta Agrofood Industries Limited, Premier Cement Mills PLC and National Cement Mills Limited had suspended production because of the gas shortage.

“Without gas, there is simply no way to continue production. If this situation persists, it will be impossible for manufacturing industries in the country to survive,” he said.

For decades, Bangladeshi businesses have demonstrated extraordinary resilience. They have overcome political uncertainty, global financial shocks, the Covid-19 pandemic, supply chain disruptions and natural disasters. Every crisis has tested the entrepreneurial spirit, and every time businesses have found a way forward. Yet today, a new challenge is emerging that may reshape the country’s economic future more than any previous crisis: climate change. Unlike past shocks, it is slower, deeper and potentially more disruptive. The question is no longer whether climate change will affect businesses, but which businesses will be prepared and which will be left behind.

Since early 2026, global geopolitical tensions have disrupted energy supplies, causing electricity shortages and prolonged load-shedding in many parts of Bangladesh. Industrial production slowed, factories struggled to meet export deadlines, and the country’s vital ready-made garment sector faced operational disruptions. At the same time, record-breaking heatwaves pushed workplace temperatures to dangerous levels, reducing productivity and increasing health-related absences.
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According to the World Bank, Bangladesh’s maximum temperature has risen by about 1.1°C since 1980, while the “feels-like” temperature has increased by 4.5°C. In 2024, heat-related illnesses and declining productivity caused the loss of nearly 250 million workdays, costing the economy an estimated US$1.78 billion, or around 0.4 percent of GDP. Dhaka has become one of the world’s fastest-warming cities, making urban businesses increasingly vulnerable.

A major threat is declining labour productivity. Bangladesh relies heavily on physically demanding work in manufacturing, construction, agriculture and logistics. The International Labour Organization estimates that by 2030, heat stress could reduce global working hours by more than 2 percent. For Bangladesh, this means lower production, delayed deliveries and reduced competitiveness.

Energy uncertainty is another growing challenge. Repeated power shortages interrupt manufacturing, increase dependence on costly diesel generators and reduce industrial efficiency. Businesses without reliable energy supplies risk losing export orders as global buyers increasingly demand dependable production with lower carbon footprints.

Floods, cyclones, excessive rainfall and extreme temperatures are also disrupting transport and logistics. Delayed raw material shipments can quickly become missed export deadlines, affecting suppliers, manufacturers and exporters across the value chain.

Meanwhile, major export markets are introducing stricter environmental standards and carbon-related trade measures. Businesses that fail to reduce emissions, improve energy efficiency and adopt sustainable manufacturing risk losing access to premium markets. Research warns that climate change could put nearly $65 billion in export earnings and around one million jobs at risk by 2030 across key apparel-producing countries, including Bangladesh.

Bangladesh can turn climate risk into an opportunity by investing in renewable energy, energy-efficient manufacturing, green buildings and climate-smart technologies. Rooftop solar, battery storage, smart energy management, waste recycling and water-efficient production can lower costs while improving energy security.

Digital technologies, including artificial intelligence, automation and predictive climate analytics, can help businesses optimise energy use, forecast risks and improve efficiency. Protecting employees through better ventilation, cooling systems, flexible work schedules and healthier workplaces should also be recognised as an investment in productivity.

Financial institutions should support this transition through green financing, sustainability-linked loans and climate-risk assessment, while government investment in renewable energy, resilient infrastructure, smart urban planning and modern public transport will strengthen the business ecosystem.

The climate transition will reward businesses that invest in resilience, sustainability and innovation. Those who treat climate adaptation as an investment rather than a cost will build stronger brands, earn greater customer trust and secure lasting competitive advantage. Those who delay may find the cost of inaction far greater than the cost of preparation. Climate resilience will not merely protect success; it will define it.