The visiting International Monetary Fund mission yesterday (14 July) held a meeting with the Economic Relations Division (ERD) to assess the country's external debt risks.

During the meeting at the Secretariat, the IMF sought detailed information on Bangladesh's cost of debt, availability of concessional financing, growing reliance on market-based floating-rate loans, average borrowing costs, and external debt-servicing obligations.

According to ERD officials who attended the meeting, the multilateral lender also sought an explanation for the recent decline in external loan disbursements to Bangladesh. In addition, the mission asked why budget support from development partners has fallen in recent years.

The officials said they told the mission that Bangladesh is transitioning from a "low-risk stabilisation phase" to a "medium-risk acceleration phase" in terms of external debt risk.

They said external borrowing has become increasingly expensive as concessional financing dwindles. Bilateral lenders, particularly Japan, are shifting towards less concessional loans, while the share of market-based floating-rate borrowing from multilateral lenders such as the World Bank and the ADB continues to rise.

Floating-rate loans accounted for about 30% of Bangladesh's external debt portfolio in FY25, and officials expect that share to increase further in the recently concluded fiscal year.

Bangladesh is entering a period of intense fiscal pressure, with external debt servicing set to surge sharply over the next five years, exposing the limits of its already weak revenue base, officials told the IMF.

According to an ERD report, the country will need to pay nearly $26 billion in external debt servicing between the current fiscal year and FY30.

In the 54 years since independence in 1971, Bangladesh has paid around $40 billion in debt servicing. Now, nearly two-thirds of that amount will be repaid within just five years.

Review part of broader macroeconomic assessment

ERD officials said the IMF's review forms part of its broader assessment of Bangladesh's macroeconomic conditions and external debt sustainability.

As part of the exercise, the mission sought an update on the country's external borrowing position and asked what steps the government is taking to accelerate the disbursement of committed foreign loans that remain stuck in the pipeline.

Officials said they informed the IMF mission that the government is reviewing many ongoing projects inherited from the previous administration and is taking a cautious approach to approving new externally financed projects.

They added that development activities slowed during the interim government's tenure, contributing to weaker foreign loan disbursements.

According to ERD data, Bangladesh currently has $41.73 billion in undisbursed foreign loans in the pipeline. External loan disbursements totalled $4.577 billion in July-May, down 18.3% from $5.488 billion in the corresponding period a year earlier.

For FY25, total external loan disbursements stood at $9.26 billion, compared with $10.25 billion in the previous fiscal year, ERD data shows.

Budget support

Officials said the IMF also sought an explanation for recent trends in budget support.

According to the ERD, Bangladesh received a record $3.44 billion in budget support in FY25, but the amount fell sharply to $1.56 billion in FY26. Officials expect budget support to decline further in the current fiscal year.

They said budget support increased in the aftermath of the Covid-19 pandemic and the Russia-Ukraine war to help Bangladesh cope with mounting economic pressures.

More recently, heightened geopolitical tensions stemming from the Israel-US conflict with Iran have further increased the need for external financing.

Bangladesh exited an existing $5.5 billion IMF loan programme, agreed in 2023 under the previous government, and is now seeking a new three-year package worth $4-4.5 billion with revised reform conditions.

The high-level IMF delegation arrived in Dhaka on 12 July for a five-day fact-finding mission to assess the feasibility of the fresh loan package.

Chinese investors have emerged as the principal drivers of new industrial investments in Bangladesh's Export Processing Zones (EPZs).

Chinese-owned and joint-venture companies accounted for nearly two-thirds of the investment commitments secured by the Bangladesh Export Processing Zones Authority (Bepza) in the fiscal 2025-26.

Bepza signed land lease agreements with 36 companies during the fiscal year, securing proposed investments worth $717.71 million, according to official figures. Of those companies, 23 are either wholly Chinese-owned or Chinese joint ventures, representing $498.86 million in proposed investments.

The surge marks a significant shift in the profile of Chinese investment in Bangladesh. Traditionally concentrated in the ready-made garment industry, Chinese companies are increasingly moving into higher value-added manufacturing sectors, including drones, semiconductors, electronics, medical devices, logistics, copper products, and automated hydroponic systems.

Among the 23 Chinese-linked firms, 18 are wholly Chinese-owned, including investors from Hong Kong, with a combined investment of $382.57 million. The remaining companies comprise one China-British Virgin Islands joint venture, two China-Singapore joint ventures and one Samoa-China (Taiwan) joint venture.

ASM Anwar Parvez, executive director for public relations at Bepza, said Chinese investment is no longer confined to the apparel sector.

"Chinese investors are now entering high-value-added manufacturing sectors such as drones, electronics, footwear, packaging materials, copper products and hydroponics," he told The Business Standard.

According to him, Bepza's investment seminars, business meetings and one-to-one engagement programmes in China over the past several years have increased awareness of Bangladesh's EPZs among potential investors.

Parvez said existing Chinese investors' positive experiences with Bepza's services, infrastructure and investment environment had also encouraged fresh investment.

"Our investors are our biggest ambassadors. In many cases, their suppliers, business partners and affiliated companies are now considering investments in Bangladesh through investor referrals," he said.

He added that Bangladesh's investment-friendly policies, competitive labour force and changing global supply chain dynamics had enhanced the country's appeal to Chinese manufacturers seeking to diversify their production bases.

Fresh momentum after PM's China visit

The investment drive gained momentum following Prime Minister Tarique Rahman's visit to China from 22 to 26 June, during which several investment-related agreements were signed.

On 25 June, the Bangladesh Economic Zones Authority (Beza) signed a memorandum of understanding with China Civil Engineering Construction Corporation to develop the China–Bangladesh Mongla Port Economic Zone on 110 acres of land adjacent to Mongla Port in Bagerhat.

Beza also exchanged a developer agreement with China Road and Bridge Corporation for the development of the Chinese Economic and Industrial Zone in Chattogram's Anwara.

Separately, the Bangladesh Investment Development Authority (Bida) signed a memorandum of understanding with the China Council for the Promotion of International Trade to strengthen business cooperation, facilitate Chinese investment and improve investor services.

Meanwhile, provisional land allocation has been completed for Handa Industries Ltd at the Keraniganj Economic Zone. The company plans to invest $220 million in its second factory in Bangladesh, a project expected to create around 13,000 jobs.

Billions in proposals under review

Following meetings between the prime minister and senior executives of major Chinese companies in Beijing, 12 firms proposed investments worth $9.21 billion across the energy, infrastructure, logistics, manufacturing and education sectors.

Ashik Chowdhury, executive chairman of Bida and Beza, said the government's immediate priority is to convert the proposals into actual investments.

"We cannot guarantee that the entire $9.21 billion will materialise. However, we are trying our best to convert as much of this investment interest as possible into real projects," he said.

"Our strategy has two equally important components – building a strong investment pipeline while simultaneously converting the existing pipeline into actual investments."

To support the process, Bida plans to establish an office in China and is working with major Chinese institutions to facilitate implementation.

Referring to Handa Industries' investment, Ashik said the project represented a firm commitment rather than a preliminary expression of interest.

"This is a hard commitment. The company is already operating in Bangladesh, and the land allocation process for its Keraniganj project is progressing. This is a confirmed investment," he said.

He added that Beza expected to hold the ground-breaking ceremony for the Chinese Economic and Industrial Zone in Anwara later this month.

Chinese firms eye Bangladesh expansion

Chinese Ambassador Yao Wen said the prime minister's visit has significantly boosted Chinese companies' confidence in Bangladesh.

Briefing journalists after the visit, the ambassador said the long-delayed Chinese Economic and Industrial Zone in Anwara had made substantial progress, with nearly all documentation completed within four months of the new government taking office.

According to Yao, more than 30 Chinese companies have already committed around $500 million in investment in the zone.

He said the prime minister's meetings with leading Chinese companies in Beijing and Dalian have generated considerable interest and that progress on the Anwara project had sent a strong signal that Bangladesh remained an attractive destination for Chinese investment.

The ambassador described the investment response from Chinese companies as one of the most significant outcomes of the visit.

According to Beza, the Chinese Economic and Industrial Zone is being developed on approximately 800 acres in Anwara under a government-to-government initiative.

Priority sectors and investor support

Bida has identified electronics, semiconductors, electric vehicle batteries, advanced textiles, technical textiles, logistics, medical devices and IT-enabled services as priority sectors for Chinese investment.

Nahian Rahman Rochi, executive member and head of business development at Bida, said Chinese companies had maintained a strong interest in Bangladesh in recent years, although government-level engagement remained critical to investment decisions.

"Chinese investors place significant importance on strong government-to-government relations and policy certainty when entering a new market. The prime minister's recent visit has strengthened that confidence," he said.

"We confirmed progress on the Chinese Economic and Industrial Zone in Anwara, laid the foundation for developing a second economic zone in Mongla and signed a cooperation agreement with CCPIT, China's largest state-backed investment promotion organisation. These developments will further strengthen Chinese investors' confidence in Bangladesh."

Rochi said Bida aimed to establish its China office within the next three months. He also disclosed that an additional $340 million in Chinese investment proposals remained in the conversion pipeline.

Officials believe that, if the proposed investments, commitments and lease agreements are gradually translated into operational projects, Chinese capital could become a major driver of Bangladesh's next phase of export-oriented industrial growth.

In response to growing Chinese interest, Bida has established a dedicated support framework for investors from China, including plans for an office in Ganzhou, stronger business-to-government coordination mechanisms and a specialised relationship management team.

The authority has also launched a China Desk to provide end-to-end assistance and introduced a Chinese-language investment portal offering sector-specific guidelines and information for prospective investors.

The Bangladesh Financial Intelligence Unit (BFIU) seized assets worth around Tk 760 billion (Tk 76,000 crore), including Tk 570 billion (Tk 57,000 crore) in Bangladesh and Tk 190 billion (Tk 19,000 crore) abroad as per court orders during the 2024-25 fiscal year.

"The money has been seized by court order, and the assets will remain frozen until the legal process is completed," BFIU Head Iqtiaruddin Md Mamun said at a press briefing at the Bangladesh Bank headquarters on Tuesday while unveiling the BFIU Annual Report 2024-25, UNB reports.

He said the BFIU remains committed to protecting the assets of the people of Bangladesh and is conducting investigations into suspicious financial transactions impartially, regardless of political affiliation or personal identity.

Responding to a question, Mamun said the BFIU has strengthened its anti-money laundering efforts by increasing the use of technology, including artificial intelligence (AI), to detect suspicious transactions more effectively.

The annual report also showed that the BFIU recorded a 74 per cent increase in suspicious financial reports in FY2024-25 compared with the previous fiscal year.

According to the report, the financial intelligence agency received 30,199 suspicious reports during FY2024-25, including 20,524 Suspicious Transaction Reports (STRs) and 9,675 Suspicious Activity Reports (SARs).

The figure was significantly higher than the 17,345 reports received in FY2023-24 and nearly six times the 5,280 reports submitted in FY2020-21.

The BFIU attributed the sharp rise to stronger regulatory enforcement and compliance requirements for reporting entities, improved technological capabilities for transaction monitoring and pattern detection, increased awareness among financial institutions about money laundering and terrorist financing risks, and a rise in suspicious financial activities, including online gambling and betting, foreign exchange (FX) and cryptocurrency trading, and digital hundi.

The report said the banking sector continued to dominate Bangladesh's financial intelligence reporting system, accounting for 95 per cent of all submissions in FY2024-25, up from 92 per cent a year earlier.

Banks alone submitted 28,755 STRs and SARs during the fiscal year, marking an 80 per cent increase from 15,991 reports in FY2023-24.

Although financial institutions and money remitters also recorded increases in the number of suspicious reports over the past three years, their overall contributions remained limited, accounting for about one per cent and four per cent of total reports, respectively, in FY2024-25.

The report also noted increased cooperation between the BFIU and law enforcement agencies.

Requests for financial intelligence from law enforcement and intelligence agencies rose by about 15 per cent to 1,329 in FY2024-25 from 1,157 in the previous fiscal year.

The Criminal Investigation Department (CID) of Bangladesh Police and the Anti-Corruption Commission (ACC) were the leading agencies seeking financial intelligence from the BFIU.

Meanwhile, the BFIU observed a year-on-year decline in Cash Transaction Reports (CTRs), which are mandatory for cash deposits or withdrawals of Tk 1 million (Tk 10 lakh) or more in a single day.

Banks and financial institutions reported 31.25 million cash transactions involving Tk 19.452 trillion (Tk 19,452 billion), while financial companies reported 1,484 such transactions worth Tk 2.17 billion.

According to the report, the decline in CTRs reflects Bangladesh Bank's continued efforts to promote a cashless and digitally enabled financial ecosystem.

Edible oil importers and refiners have warned it has become increasingly difficult to sustain supplies under government-mandated price controls, urging the commerce ministry to scrap the restrictions and restore a competitive market. The ministry, however, reached no decision on the issue at its latest meeting. The warnings coincide with a sharp contraction in inbound shipments, which fell nearly 10 percent in the fiscal year that ended on June 30.

The policy deadlock comes amid a widening supply deficit. According to the Bangladesh Trade and Tariff Commission, annual domestic demand stands between 2.3 million and 2.4 million tonnes. However, combined imports of soybean and palm oil reached just 2.22 million tonnes in the 2025–26 fiscal year, undershooting national requirements and dropping from the 2.45 million tonnes imported during FY 2024–25.

Customs data analysed by the National Board of Revenue shows the import bill for FY 2025–26 totalled BDT 304.4 billion, rising to a landed cost of BDT 350 billion once duties and VAT are included. In the previous fiscal year, the pre-tax bill stood at BDT 319.04 billion, with a landed cost of BDT 348.96 billion.

Because Bangladesh produces negligible quantities of oilseed, the country relies on imports to meet virtually all domestic edible oil demand. The large-scale supply chain is heavily concentrated, dominated by three conglomerates: TK Group, Meghna Group of Industries and Smile Food Products. Under the current supply structure, crude soybean oil is imported and refined locally before retail distribution, while palm oil arrives pre-refined. A small number of industrial groups also import raw soybean seeds from Brazil and the United States for domestic crushing and oil production.

NBR data show palm oil continues to dominate the domestic market, accounting for nearly 70 percent of combined imports of the two edible oils. Crude soybean oil imports fell to 690,000 tonnes in the recently concluded fiscal year, compared to 1.53 million tonnes of palm oil. In the fiscal year before that, the split stood at 931,000 tonnes of soybean oil and 1.51 million tonnes of palm oil.

Mostafa Kamal, chairman of Meghna Group of Industries, told Bonik Barta that maintaining supply continuity must be the priority. “We have to balance demand and supply by weighing local production, imports and stocks,” Kamal said. “Instead of fixing prices, the government should let a competitive market set them, based on international prices, import costs and the local market situation. That’s the most effective system.”

In its latest letter to the commerce ministry, the Bangladesh Vegetable Oil Refiners and Banaspati Manufacturers Association formally requested that the government relinquish its role in setting retail prices. The group argued that a market-driven mechanism factoring in global commodity exchanges, import costs and local conditions represents the only viable framework, tabling a series of operational proposals.

Under the association’s proposed framework, pricing would be calculated using active letters of credit, in-bond and ex-bond values alongside international commodity exchanges, specifically the Chicago Board of Trade. The Tariff Commission would verify the data. The association also proposed establishing a central market-monitoring cell under the commission, to be housed within the commerce ministry. Importers would feed commercial data directly into the cell, creating a single information channel for all state agencies to improve transparency and eliminate redundant regulatory data requests.

The letter further suggested that the ministry launch a digital dashboard to store corporate pricing data, offering to finance and build the platform at the association’s own expense.

Shafiul Athar Taslim, a director of TK Group, told Bonik Barta that importing bulk commodities requires significant capital, making market-based pricing essential for both consumer stability and commercial viability.

“We are forced to sell at about BDT 20 a litre below our import cost,” Taslim said. “We have kept importing and supplying only on the government’s assurances. But it’s not possible to run a business at a loss for long.”

Industry executives noted that while the government has repeatedly promised a transition to market-based pricing, it has failed to implement the policy. They argue that a deregulated market would naturally self-correct, as competition would prevent individual firms from raising prices unreasonably. Without immediate policy reform, they warned, mounting financial losses will eventually leave importers and refiners unable to maintain supplies.

The benchmark index of the Dhaka Stock Exchange (DSE) continued its upward momentum for the fifth consecutive session today (15 July), as investors remained optimistic about supportive policy shifts and a constructive near-term outlook for the capital market.

The broad DSEX index gained 15 points to settle at 5,926, up from 5,911 in the previous session. The blue-chip DS30 index also mirrored the gain, rising 15 points to close at 2,242.

The sustained rally over the past five sessions has added 156 points to the broad index, while the total market capitalisation of the premier bourse jumped by approximately Tk12,000 crore during the same period.

According to the daily market review by EBL Securities, the market opened on a firm footing, supported by broad-based accumulation in large-cap scrips. However, the gains were moderated by intermittent profit-taking across the board, which pared a portion of the early advances. Sustained buying interest toward the close eventually enabled the index to maintain its positive trajectory.

Despite the rise in the benchmark index, market participation saw a slight cooling. Total turnover on the DSE decreased by 8.2% to Tk1,516 crore, compared to the previous session.

The market breadth also turned negative, with 218 issues declining, 131 advancing, and 51 remaining unchanged out of the 396 securities traded.

On the sectoral front, the pharmaceutical sector dominated trading activity, accounting for 14.3% of the total turnover, followed by the banking sector at 12.2% and the textile sector at 11.1%.

In terms of returns, the cement sector emerged as the top performer with a 2.3% gain, followed by ceramics at 1.2% and mutual funds at 1.0%.

Conversely, the jute sector faced the steepest correction, dropping 2.6%, while the services and tannery sectors declined by 1.6% and 1.2%, respectively.

Individual stock performance featured ACI Formulation, International Leasing, Peoples Leasing, Fareast Finance, and Aramit Cement as the top gainers of the day.

In a notable regulatory move, the Dhaka Stock Exchange suspended the trading of Renwick Jajneswar due to an "unusual" price hike.

On the flip side, Pragati Life Insurance, Jute Spinners, and Appollo Ispat emerged as the worst-performing shares of the day.

BSRM Steel, BRAC Bank, Malek Spinning, and LafargeHolcim Cement Bangladesh remained the most-traded stocks by value.

The bullish sentiment was mirrored at the Chittagong Stock Exchange (CSE), where the Selective Categories' Index (CSCX) gained 65.5 points and the All Share Price Index (CASPI) rose by 91.3 points.

The Chittagong Chamber of Commerce and Industry has urged Bangladesh Bank not to introduce new banking service fees or increase existing charges, warning that higher costs would further burden businesses and consumers amid ongoing economic challenges.

In a letter sent to Bangladesh Bank Governor Md Mostaqur Rahman on Wednesday, CCCI President Mohammed Amirul Haque requested the central bank to reject proposals submitted by banks seeking to impose new fees and raise charges on various banking services.

Businesses believe additional banking charges would increase the cost of doing business, CCCI said, particularly for small and medium enterprises, and eventually push up prices for consumers.

The chamber noted that the economy is already under pressure from high production costs, weak private sector investment and sluggish business activity. At such a time, approving new banking fees and higher service charges would discourage investment and undermine efforts to revive economic growth, it said.

The business body also expressed concern over proposals to increase charges for services such as letters of credit (LCs), loan processing, loan settlements, cash withdrawals, balance confirmations and other banking services.

It urged Bangladesh Bank to retain the existing limits on cash withdrawal charges and maintain current fee-free balance thresholds, arguing that higher banking costs could discourage people from using formal banking channels and hamper the government’s drive towards greater financial inclusion and digital transactions.

“The current economic situation does not warrant additional financial burdens on businesses and the public. Instead, policies should support economic recovery and investment,” the chamber said in the letter.

The UK government is providing £355,000 (approx. BDT 5.7 crore) in life-saving humanitarian assistance to support more than 55,000 people affected by flooding in southeast and northeast Bangladesh.

Managed by Start Network and delivered through national and local NGOs, the UK contribution will provide affected communities with cash assistance, food and hygiene supplies across six of the worst-affected districts: Cox's Bazar, Bandarban, Rangamati, Chittagong, Khagrachari and Moulvibazar.

This support builds on £245,000 (approx. BDT 3.9 crore) in emergency funding released in May 2026 for communities affected by the earlier flooding in the Sylhet region. It brings the UK government's total disaster response support in Bangladesh this year to more than £600,000 (approx. BDT 9.6 crore), alongside ongoing UK support to strengthen Bangladesh's climate resilience.

The UK is also supporting flood-affected communities through its contributions to the International Federation of Red Cross and Red Crescent Societies' Disaster Response Emergency Fund (DREF). Through DREF, a total of £438,348 (approx. BDT 7.2 crore) is being provided to assist people affected by flooding across 10 of the worst-affected districts in northeast and southeast Bangladesh.

Additionally, through the UK–Bangladesh hydro-met partnership, the UK has supported the integration of UK Met Office data into national forecasting systems, improving the accuracy and lead time of flood warnings across Bangladesh. This has enabled earlier warnings and faster emergency action ahead of recent flash flooding, with plans to expand this work to ensure warnings reach the communities most at risk.

British High Commissioner to Bangladesh Sarah Cooke said:

"The UK stands with the people of Bangladesh affected by these devastating floods. This humanitarian assistance will help provide vital support to more than 55,000 people across some of the worst-affected areas in southeast and northeast Bangladesh.

"The UK remains committed to working with Bangladesh to help communities prepare for, respond to and recover from natural disasters, while strengthening long-term climate resilience."

US consumer inflation cooled more than expected in June as energy costs fell on a temporary easing of the US-Iran war, government data showed Tuesday, but renewed hostilities could stoke price pressures.

The consumer price index (CPI) rose by 3.5 percent on a year-on-year basis in June, down from a three-year high of 4.2 percent in May, the Labor Department said.
A drop in energy costs had more than offset upticks in housing and food prices. Trump touted the report, saying: “Prices are coming way down, and we’re going to bring them much lower yet.”

“Remember that for the midterms,” he added, invoking voters’ concerns over rising costs ahead of the November midterm elections.

Analysts had anticipated inflation to hit 3.8 percent, according to a survey by Dow Jones Newswires and The Wall Street Journal.

But Kevin Warsh, chairman of the independent US central bank, indicated Tuesday that it was still too early to celebrate.

“There might be some that look at this morning’s data and say, ‘Oh, mission accomplished! Everything is swell,’” Warsh said at a House Financial Services Committee hearing. “That is not my view.”

He told lawmakers that Federal Reserve officials have “no tolerance” for stubbornly high prices and vowed to rid the United States of a years-long “inflation surge.” “If we get policy right -- and I can assure you we will -- the inflation surge of the last five years will be a thing of the past,” Warsh said in opening remarks.

While the bank has a long-run inflation target of 2.0 percent, cost hikes have been higher than that level for around five years.

Besides inflation, US lawmakers also questioned Warsh on his ties with Trump, who selected him for the Fed role.

Markets are watching for hints that the Fed may lift interest rates later this year to counter inflation -- despite the president’s pressure for cuts.

Asked what he would do if targeted by Trump over the Fed’s interest rate decisions, Warsh said: “I would continue to do my job.”

“Outside the four walls of the Federal Reserve, there’s no doubt a lot of politics,” he added. “My goal inside the central bank is for there to be no politics. The extent there’s politics there, we’re going to get rid of them.”

He maintained that policymakers would “follow the data” and their “very best judgment” in adjusting rates.

The Fed is also monitoring the effects of AI investments on inflation and the jobs market, he said.

Excluding the volatile food and energy sectors, “core” CPI was up by 2.6 percent year-on-year in June, also below May’s reading.

Overall CPI fell by 0.4 percent between May and June, the first month-on-month decline since 2020.

White House economic advisor Kevin Hassett told Fox News that Tuesday’s report was “absolutely the best” in about six years, downplaying expected disruptions from the Middle East conflict.

Hassett added that the path towards lower US gasoline prices merely faced “a hiccup” because of Tehran.

A lower reading of underlying inflation “gives the Fed breathing room in deciding whether and when to raise interest rates,” said Nationwide chief economist Kathy Bostjancic in a note.
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But she warned that the sharp reversal in oil and gasoline prices “will keep odds for a rate hike in the coming months high.”

For now, June’s data have not shown inflation broadening out across goods and services, a concern held by central bankers, said economist Bernard Yaros of Oxford Economics.

Besides oil prices, effects from Trump’s tariffs “were not discernible” while price pressures linked to the artificial intelligence buildout were less evident than expected, he said.

US gasoline costs plunged by 9.7 percent in June on a month-on-month basis -- though they are still higher than a year ago.

Energy prices rocketed this year after the US and Israel launched strikes on Iran in late February, triggering Tehran’s retaliation in virtually blocking off the Strait of Hormuz, a key waterway for global energy transit.

ran’s Islamic Revolutionary Guard Corps has threatened to close “all other export corridors that benefit the U.S. ​and its allies”, Iranian media reported, after Iran shut the Strait of Hormuz and the U.S. reimposed a naval blockade of Iranian ports.

“Regional energy exports are either shared by ‌all, or denied to all,” the IRGC said in a statement carried by Iran’s IRNA state news agency on Wednesday.

Analysts have said Iran has been signalling it may use its Houthi allies in Yemen to shut the Bab el-Mandeb gateway to the Red Sea, opening a new front against Washington and putting two of the world’s most vital energy arteries at risk.

The narrow gateway links the Red Sea to the Gulf of Aden, through which Saudi oil exports and a substantial share of global ​shipping pass.

A senior Houthi official warned on Monday that the group was prepared to close the Bab el-Mandeb Strait — a move he said could send oil prices soaring to $200 a barrel — if ​Saudi Arabia continued to attack Yemen, according to a report on Iran’s Press TV website.

Houthi forces fired missiles at Saudi Arabia after accusing the kingdom of ⁠bombing an airport under their control on Monday, breaking a four-year truce in the conflict between the kingdom and the Iran-aligned group.

The Houthis have already shown they can choke global commerce through the Bab el-Mandeb. ​After the Gaza war erupted in October 2023, the Iran-backed group launched attacks on commercial shipping in the Red Sea, saying it was targeting vessels linked to Israel in support of Palestinians.

The latest threat to global shipping ​comes a day after the U.S. military said it began a fresh round of strikes “to continue degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz.”

The United States said Iran had attacked seven commercial ships over the last week, leading to nearly a dozen crew members being killed, missing or injured.

The U.S. military said late on Tuesday that it hit dozens of military targets near the Strait of Hormuz and Iranian coastal areas. The wave of strikes lasted ​seven hours, the U.S. Central Command said in a statement.

Iranian government spokesperson Fatemeh Mohajerani said at least 30 civilians had been killed in recent days due to the U.S. strikes on southern Iran, state ​media reported on Wednesday.

Iran’s army said at least seven active-duty and conscript personnel were killed in overnight U.S. strikes on the Bampur military base in the country’s southeast.

‘END OF AMERICA’S EVILS’

The IRGC said on Wednesday that the Strait of ‌Hormuz would remain ⁠closed until what it described as “the end of America’s evils”. Before the war began in February, about a fifth of global oil and gas shipments passed through Hormuz each day.

The Guards said they had targeted what they described as command-and-control, logistics, fuel and military equipment facilities belonging to the U.S. Fifth Fleet in Bahrain, in response to the latest U.S. strikes in the Strait of Hormuz.

They also said they had set fire to and destroyed what they described as a U.S. logistics facility in Kuwait’s Mina Abdullah and that their air force had struck what they described as a U.S. base at Azraq in Jordan, targeting aircraft hangars. They ​said some of the U.S. attacks had been launched ​from bases on Jordanian territory.

Earlier on Wednesday, Kuwait’s ⁠state news agency reported that a fire was brought under control at a site targeted in Iranian attacks. It was not immediately clear whether the fire was at the same site referred to in the IRGC statement.

Jordan’s air defence intercepted and shot down three ballistic missiles that entered the country’s airspace from Iranian ​territory early on Wednesday.

The hostilities between Iran and the U.S. re-ignited last week, fraying an already fragile truce reached in June after several months of ​fighting that has killed thousands.

TRUMP ⁠THREATENS TO HIT ENERGY TARGETS

U.S. President Donald Trump on Tuesday threatened to hit Iranian power plants and bridges next week unless Tehran resumes negotiations.

“I’ll save the energy targets for last, but ultimately we’ll hit energy targets,” Trump said in an interview with Fox News’ Trey Yingst.

U.S. negotiators had been in touch with their Iranian counterparts to tell them “you better make a deal”, Trump added.

As tensions escalated, Trump on Monday floated the idea of a 20 percent fee on shipping ⁠through the strait, ​which drew sharp criticism from the U.N. shipping agency and others. On Tuesday, he scrapped the idea and said, without providing details, ​that he would instead seek investment deals with Gulf states.

Oil prices rose on Wednesday, after closing up 2 percent to a one-month high on Tuesday, as the latest attacks deepened a supply disruption in the Strait of Hormuz.

For the second straight session, Brent closed at its highest ​since June 12 and West Texas Intermediate at its highest since June 15. Both contracts rose further in early Wednesday trading.

Oil extended gains by around 2 percent on Wednesday as President Donald Trump reimposed a naval blockade on all Iranian ports and Iran’s Islamic Revolutionary Guard Corps threatened to close “all other export corridors that benefit the U.S. and its allies”.

Brent futures climbed $1.71, or 2 percent, to $86.44 a barrel at 0806 GMT. West Texas Intermediate futures gained $1.43, or 1.8 percent, to $80.77 a barrel.
Oil prices settled up 2 percent at a one-month high on Tuesday as attacks exacerbated a supply disruption in the Strait of Hormuz, through which about a fifth of the world’s oil and liquefied natural gas passed prior to the beginning of the Iran war.“Regional energy exports are either shared by all, or denied to all,” Iran’s Islamic Revolutionary Guard Corps said in a statement carried by Iran’s IRNA state news agency on Wednesday.

Brent futures climbed $1.71, or 2 percent, to $86.44 a barrel, while West Texas Intermediate futures gained $1.43, or 1.8 percent, to $80.77 a barrel

Analysts have said Iran has been signalling it may use its Houthi allies in Yemen to shut the Bab el-Mandeb gateway to the Red Sea, opening a new front against Washington and putting two of the world’s most vital energy arteries at risk.

Hostilities between Iran and the US reignited last week, fraying an already fragile truce reached in June after several months of fighting.

Early on Wednesday, the US began a fresh round of strikes to continue degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz, the US military said.

“I’ll save the energy targets for last, but ultimately we’ll hit energy targets,” Trump told Fox News in an interview aired Tuesday night on “Special Report with Bret Baier”.

“The US naval blockade of ships coming/going to Iranian ports is tightening the oil market, considering that Iranian crude exports were around 1.5 million to 2 million barrels per day in the last two weeks,” said UBS analyst Giovanni Staunovo.

Goldman Sachs estimated in a note that Gulf exports recovered to more than 80 percent of pre-war levels after the US-Iran memorandum of understanding in June but slipped back below 50 percent, or about 11 million bpd, over the last week.

The bank said Brent could exceed $110 in the fourth quarter this year if Gulf export recovery continues to stall.

Iran’s army said early on Wednesday that it had launched drone attacks against US positions at Jordan’s Azraq base. There was no immediate comment from the Pentagon.

Meanwhile, Iran’s Islamic Revolutionary Guard Corps said it targeted weapons and storage facilities in Bahrain and Kuwait. Reuters could not immediately verify the reports.

Deltaport Footwear Ltd, a joint venture of Italian and Irish investors, will invest $21.60 million to set up a footwear manufacturing plant at the Bepza Economic Zone in Mirsharai, Chattogram, run by the Bangladesh Export Processing Zones Authority (Bepza).

The plant will produce around three million pairs of shoes a year, including injected and cemented footwear, as well as casual, formal, ladies’ and safety shoes, creating jobs for 468 Bangladeshi nationals.

The company expects annual export earnings of about $37.5 million, targeting markets in Italy, Europe, the UK, the US and Colombia. The company signed a land lease agreement with Bepza on June 30 at the Bepza Complex in Dhaka, according to a press release.

Md Tanvir Hossain, executive director for investment promotion at Bepza, and Junaid Iqbal Umerani, chief executive officer of Deltaport Footwear, signed a deal in this regard at a programme attended by Mohammad Moazzem Hossain, executive chairman of Bepza.

Welcoming the investment, Hossain said Bepza was continuously enhancing its infrastructure and services to offer investors a more convenient, modern and business-friendly environment.

Deltaport’s CEO said this was his company’s third investment in Bangladesh, all within Bepza-administered zones, adding that Bangladesh was the most attractive investment destination among the countries considered, including India and Vietnam.

Bangladesh risks falling behind in the rapidly changing world of work unless it urgently strengthens skills development, social protection and policy implementation to address the impacts of automation and artificial intelligence (AI), experts warned today (15 July).

The webinar, titled "Work in Flux: Foresight for the Future of Work in the Global South," was organised by the Centre for Policy Dialogue, LIRNEasia, JustJobs Network, Southern Voice and the Citizen's Platform for SDGs, Bangladesh, with support from Canada's International Development Research Centre.

Presenting CPD's latest foresight study, Towfiqul Islam Khan, additional research director at CPD, said Bangladesh recently lost around 1.3 million jobs, with women accounting for nearly 90% of those losses. He warned that up to 1.22 million RMG jobs could be threatened by automation by 2041, particularly affecting low-skilled female workers.

He also criticised Bangladesh's low investment in education, noting that public spending remains around 1.3% of GDP, while technical and vocational education and training remain poorly aligned with future labour market demands.

Chairing the session, Debapriya Bhattacharya, distinguished fellow at CPD, said Bangladesh's biggest challenge is not the lack of policies but weak implementation and poor coordination among institutions.

As industries automate to remain competitive after LDC graduation, he said, adequate protection for displaced workers remains absent.

"The technological transition must be actively managed by the state," Debapriya said, warning that failure to do so could deepen inequality.

Helani Galpaya, CEO of LIRNEasia, said the growing gig economy should not be viewed as a universal solution, pointing to the digital divide that limits women's access to online work.

She also argued that digital platforms often shift financial and occupational risks onto workers.

Sabina Dewan, president and executive director of JustJobs Network, urged policymakers to prioritise the quality of jobs rather than simply increasing employment numbers. She called on global brands driving automation in supply chains to help finance worker reskilling, saying a "just transition" requires preparing workers before technology replaces them.

Representing the ILO, Gunjan Bahadur Dallakoti stressed that small and medium enterprises need greater support to adopt digital technologies while formalizing employment and strengthening labour institutions.

Drawing on Latin American experience, Ramiro Albrieu of Argentina's CIPPEC said countries in the Global South must invest in digital skills to fully utilise their demographic advantage and adopt long-term foresight planning rather than reacting to crises.

The speakers agreed that Bangladesh's future competitiveness will depend not only on technological adoption but also on coordinated policies that ensure automation creates inclusive, resilient and decent employment rather than widening inequality.

Bangladesh Bank has made prior approval from the chief inspector of Boilers mandatory for the import of boilers and boiler components, in line with a directive from the Ministry of Industries.

The central bank's Foreign Exchange Policy Department issued a notification yesterday (14 July), instructing authorised dealer (AD) branches of all banks engaged in foreign exchange transactions to comply with the new requirement.

The notification said the fresh directive follows a memo issued by the Boiler Wing of the Ministry of Industries on 28 June, 2026, and has been made effective for all boiler and boiler component imports accordingly.

According to the notification, boiler manufacturers must complete construction within a maximum of 12 months from the date of drawing and design approval.

Manufacturers must also hand over all documents and certificates required for registration to the buying entity after supply or sale of a boiler, and must inform the chief inspector of Boilers in writing of the buyer's name and address.

The directive further requires that occupational health and safety of factory workers be ensured, with all relevant provisions of existing labour law to be followed.

Under the new instructions, prior approval from the chief inspector of Boilers must be obtained through a prescribed application form before any import of boilers or boiler components.

On receipt of an application, a designated officer will verify the necessary documents and submit a report to the Chief Inspector, who will grant or reject the import approval after reviewing the report.

If approved, the deputy chief inspector of Boilers will issue the approval letter.

If an application is rejected, the applicant must be informed in writing of the reasons within seven working days, after which they may reapply upon rectifying the deficiencies and paying the requisite fee.

The notification added that the concerned authority may also inspect a manufacturer's factory or production process, if required, to ensure the quality of boilers.

A high-level Saudi delegation today (15 July) met Prime Minister Tarique Rahman and expressed interest in investing up to $1 billion in Bangladesh's ports, railways and other key infrastructure projects.

The meeting took place at the Prime Minister's Office in the Jatiya Sangsad Bhaban, said a press release issued by the PM's Press Wing.

The delegation was led by Saudi Arabia's Vice Minister for Transport and Logistic Services Dr Rumaih Mohammed Al-Rumaih.

During the meeting, the two sides discussed Bangladesh-Saudi Arabia bilateral relations, investment opportunities and ways to expand cooperation in infrastructure development.

Members of the delegation also expressed their commitment to further strengthening ties between the two countries.

The prime minister said Bangladesh's long-standing friendly relations with Saudi Arabia are of great importance to his government.

The delegation informed Tarique Rahman that Red Sea Gateway Terminal International is interested in investing $180 million to develop a Bay Terminal in Bangladesh and increasing its overall investment in the country's port sector to $1 billion.

They also said Red Sea Gateway Terminal International and several other Saudi companies are keen to invest in various sectors in Bangladesh.

The prime minister briefed the delegation on his government's investment-friendly policies and initiatives aimed at attracting greater foreign investment.

The delegation said it explored investment opportunities in Bangladesh's ports, railways and several other sectors, adding that detailed discussions could be held at a future joint meeting between the two countries.

The Prime Minister thanked the Saudi delegation for visiting Bangladesh and for showing strong interest in investing in the country.

In response, the delegation said they are looking forward to welcoming Prime Minister Tarique Rahman to Saudi Arabia.

Road Transport and Bridges, and Railways Minister Shaikh Rabiul Alam, Prime Minister's Adviser on Foreign Affairs Humaiun Kobir and Bangladesh Investment Development Authority (BIDA) Executive Chairman Ashik Chowdhury were present at the meeting.

The Saudi delegation also included Assistant Deputy Minister for Investment Engineer Ammar Al-Taff, Red Sea Gateway Terminal International Board CEO Amer Reda, Red Sea Gateway Terminal CEO Lars Vang, Saudi Ambassador to Bangladesh Dr Abdullah Zafer H bin Abiyah and other senior officials.

India approved a new semiconductor programme on Wednesday, offering more than $13 billion in financial assistance to accelerate local chip production, as it seeks to become a global electronics powerhouse.

India’s Union Cabinet approved the “Semicon 2.0” initiative, expanding on a drive launched five years ago to reduce reliance on imports and attract investment in one of the world’s most strategically important industries.
It comes as countries race to secure semiconductor supply chains following pandemic-era disruptions and growing geopolitical tensions that exposed vulnerabilities in global chip production.The programme will focus on strengthening the local semiconductor ecosystem, encouraging domestic production of key materials and attracting global manufacturers to establish fabrication plants in India.

The plan recognised the need for “sustained and long-term support” to the industry and aimed to place India “on the semiconductor map of the world”, the cabinet said in a statement, without providing more details on how the money will be used. An earlier semiconductor incentive scheme “Semicon 1.0”, which was unveiled in 2021, offered support covering up to half the cost of setting up chip projects.

The incentives helped launch 12 manufacturing projects across fabrication, packaging and related segments, with at least three already entering commercial production. Among them is a semiconductor assembly and test facility established by US memory giant Micron Technology.

India’s chip market has grown from about $38 billion in 2023 to an estimated $45 billion-$50 billion in 2024-25.

The government is targeting a market size of $100 billion-$110 billion by 2030.

Bangladesh Bank eased regulations on external borrowing by fully foreign-owned industrial enterprises, allowing them to access loans from parent companies, associates, and shareholders abroad under a general authorisation framework.

According to a circular issued yesterday, eligible manufacturing and service-sector enterprises operating both within and outside specialised zones, including export processing zones (EPZs), economic zones (EZs), and High-Tech Parks, will be able to obtain short-, medium- and long-term foreign loans subject to specified conditions.

For short-term borrowings of less than one year, companies outside specialised zones may obtain interest-free loans for working capital purposes without prior approval from Bangladesh Bank.

They may also avail cost-bearing loans at a total cost of up to 3 percent “per annum” for “bona fide” business purposes, including input procurement.

Such loans must be repaid in a single lump sum at maturity and may be extended, up to a maximum term of three years.

For medium-term borrowings of one to five years, Bangladesh Bank allowed interest-free loans of up to $50 million and cost-bearing loans of up to $5 million for capital expenditure, including the purchase of machinery and equipment, as well as construction-related expenditure.

Long-term borrowings of more than five years will also be allowed, with borrowing costs capped at 3 percent “per annum” where applicable.

The circular also allows outstanding borrowings to be converted into equity subject to existing regulations.

As per industry insiders, the new measures are expected to improve access to affordable overseas financing and encourage greater foreign investment in Bangladesh.

The Bangladesh Financial Intelligence Unit (BFIU) received 30,199 reports of suspicious financial activities and transactions in fiscal year 2024-25, up 74 percent from a year earlier and the highest number since FY21, according to its annual report.

While revealing the report at a press conference yesterday, BFIU Chief Iqtiaruddin Md Mamun said reports of suspicious transactions have increased since the political changeover in August 2024.

The central anti-money laundering agency linked the increase to stronger regulatory enforcement and stricter compliance requirements for reporting entities, including banks, non-bank financial institutions, capital market intermediaries and remitters.

It also cited better technology for monitoring transactions and detecting unusual patterns, greater awareness among financial institutions, and the emergence of new channels such as online gambling and betting, foreign exchange and cryptocurrency trading, and digital hundi.

Of the FY25 total, the BFIU received 20,524 suspicious transaction reports (STRs). These reports flag specific transactions suspected of being linked to money laundering or other financial crimes.

In that year, it also received 9,675 suspicious activity reports (SARs), which highlight unusual customer behaviour or financial activity that may require further investigation even when no specific suspicious transaction has been identified.

In FY25, banks submitted about 90 percent of all reports.

Explaining why banks accounted for most of the reports, BFIU Chief Iqtiaruddin said they had previously been reluctant to report suspicious transactions. “They no longer have that fear. As a result, banks are now submitting more reports.”

The BFIU received 17,345 reports of suspicious financial activities and transactions in FY24 and 14,106 in FY23, the report showed.

The BFIU chief said political affiliation is not being considered while investigating suspicious transactions, adding that anyone involved will face action.

Replying to a question, he said the agency analyses information received from reporting entities and other sources before preparing financial intelligence reports.

Iqtiaruddin said the BFIU prepared 199 intelligence reports in FY2024-25 and sent them to law enforcement agencies. Those agencies investigate the cases and, if sufficient evidence is found, may file criminal charges.

The BFIU chief said the agency has memorandums of understanding (MoUs) with counterparts in 180 countries and exchanges intelligence through the Egmont Group secure web platform.

Asked whether any laundered money has already been repatriated, he said the recovery process is under way and expressed hope that the public will receive “good news” by the end of the year.

“We will not let money launderers live in peace,” the BFIU chief told The Daily Star after the press conference.

TK 76,000CR ASSETS FROZEN IN 11 PRIORITY CASES, INCLUDING SHEIKH FAMILY

BFIU Chief Iqtiaruddin said the agency is committed to recovering assets stolen from Bangladesh.

He said assets worth Tk 76,000 crore have so far been frozen or attached, including Tk 57,000 crore in Bangladesh and Tk 19,000 crore abroad, across 11 priority cases.

The BFIU, together with a joint task force comprising the Anti-Corruption Commission (ACC), Criminal Investigation Department (CID) and National Board of Revenue (NBR), is investigating the cases.

They involve former prime minister Sheikh Hasina, her family and 10 major business groups. “We have sent 23 Mutual Legal Assistance [MLA] requests to foreign jurisdictions, and the process is ongoing.”

Replying to a question, the BFIU chief said asset recovery is being pursued through both criminal and civil proceedings.

“Banks affected by loan fraud have engaged international law firms, many of which have signed non-disclosure agreements and are moving toward commercial engagement. We hope to achieve tangible progress in civil recovery by the end of this year.”

Replying to another question, he said the BFIU does not target individuals based on their identity, political affiliation or status. “Our focus is solely on whether suspicious transactions have occurred. Anyone found to have engaged in activities covered under the Money Laundering Prevention Act will face action in accordance with the law.”

The annual report also showed that the number of cash transactions fell to 331.6 crore in FY2024-25 from 393.5 crore a year earlier. The total value of those transactions declined to Tk 20,43,579 crore from Tk 23,90,093 crore.

According to the BFIU, the decline reflects wider adoption of digital payment channels, stronger regulatory oversight and changes in cash-based business practices driven by broader macroeconomic adjustments.

Bangladesh stands at a defining moment in its economic journey. Having grown into a $510 billion economy, the country now aims to become a $1 trillion economy by 2034. The national budget theme, Economic Democratisation and Decentralisation: Bangladesh in the Trillion-Dollar Economic March, reflects both the scale of that ambition and the need to ensure growth creates opportunities across the country. Achieving this vision will depend on three closely linked priorities: attracting more foreign direct investment (FDI), accelerating digital transformation and deepening financial inclusion.

Bangladesh’s remarkable progress has been built on manufacturing, exports, infrastructure and the resilience of its people. The next phase of growth will increasingly be driven by digital infrastructure, AI, cloud technologies and innovation. Around the world, countries that have reached higher-income status have paired physical infrastructure with strong digital ecosystems. Today, digital connectivity is as important as roads, ports and power in driving competitiveness.

FDI plays a vital role in this transformation. Beyond capital, it brings technology, innovation, international expertise and access to global markets. These are essential for raising productivity, creating skilled jobs and supporting sustainable growth. Bangladesh’s recent investment performance offers encouraging signs. After slowing between 2022 and 2024 amid global uncertainty and foreign exchange pressures, net FDI rebounded by 39.36 percent in 2025 to $1.77 billion. The next challenge is attracting higher-value investment into sectors that will shape the future economy, including AI, cloud computing and digital services. One promising example is the proposed “Invest in Bangladesh NOW” initiative discussed between Banglalink’s parent company, VEON, and the prime minister. The initiative aims to attract $1 billion in FDI, anchored by VEON’s initial $250 million commitment. It would focus on digital banking, AI, youth skills and connectivity while using VEON’s global network to attract further investment.

Investment also brings valuable expertise. Around the world, digital financial services have transformed financial inclusion. In Kenya, M-Pesa has enabled millions to access payments, savings and credit. In India, the Unified Payments Interface has made secure, low-cost digital payments widely accessible. In Pakistan, JazzCash has expanded access to financial services and supported the shift towards a less cash-based economy. Bangladesh can build on these examples by expanding digital banking, microfinance and microinsurance. Economic democratisation also means ensuring digital opportunities reach every part of Bangladesh. A young entrepreneur in Kurigram, a farmer in Bhola or a student in Bandarban should have the same opportunities as someone in Dhaka. Expanding digital infrastructure, including next-generation technologies such as satellite-enabled direct-to-cell connectivity, can help bridge the digital divide.

Banglalink’s experience over the past two decades shows how sustained investment in connectivity can narrow that divide. As part of the VEON Group, the company continues to expand digital access while introducing services that support education, healthcare, commerce, public services, entertainment and AI-enabled solutions. Drawing on VEON’s fintech expertise, Banglalink also aims to expand digital banking, microfinance and microinsurance, helping more Bangladeshis participate in the formal economy. Together, digital connectivity and financial inclusion can boost productivity and support inclusive growth.

Bangladesh’s greatest competitive advantage remains its people. With a workforce of more than 77 million, the country has the potential to become a leading digital economy. Realising that potential will require continued investment in digital skills, AI and innovation, backed by predictable policies, transparent regulation and close collaboration between government and the private sector. Bangladesh has consistently shown its ability to exceed expectations. Reaching a trillion-dollar economy will require greater investment, world-class digital infrastructure, deeper financial inclusion, skilled workers and strong public-private partnerships. If these priorities advance together, Bangladesh can strengthen its global competitiveness while creating broader prosperity and a better quality of life for all.

The telecom regulator has upheld a Tk 3 crore administrative fine on Summit Communications Ltd, the country’s largest telecom infrastructure operator, after concluding it engaged in discriminatory bandwidth pricing.

At a recent meeting, the Bangladesh Telecommunication Regulatory Commission (BTRC) has decided to issue a formal notice instructing Summit to deposit the penalty with the regulator’s Finance, Accounts and Revenue Division within 10 working days.

The decisions were taken after reviewing a hearing report, following Summit’s challenge to the fine originally imposed last year, according to minutes of the meeting.

An investigation found that Summit charged its own International Internet Gateway (IIG) business an average of Tk 8 per Mbps for bandwidth, while charging other IIG operators an average of Tk 196.65 per Mbps, a gap officials described as “clearly discriminatory”.

The commission’s decision follows months of regulatory proceedings after inspections at Summit’s Dhaka headquarters and its Terrestrial Cable Landing Station (TCLS) in Benapole, Jashore.

As an International Terrestrial Cable (ITC) operator, Summit imports internet bandwidth from India and sells it to its affiliated IIG at prices significantly lower than competitors. As BTRC collects revenue sharing based on operators’ earnings, a lower transfer price reduces the government’s revenue.

Bangladesh’s international bandwidth flows from submarine cables or ITCs to IIGs, then through Nationwide Telecommunication Transmission Network (NTTN) operators to mobile operators and ISPs before reaching consumers. BTRC collects revenue sharing at multiple stages of this value chain.

Based on its inspection findings, the commission imposed the Tk 3 crore fine in early May last year. Summit, in response, sought a waiver and requested meetings with the regulator, prompting a series of review proceedings.

The commission first appointed a deputy director to review the appeal. After examining the case, the officer recommended upholding the penalty. Summit appealed again without paying, after which the commission appointed Commissioner (Engineering and Operations) Brig Gen (Retd) Iqbal Ahmed to conduct a fresh hearing involving both the inspection team and the company.

According to the commission’s meeting documents, the hearing officer found that Summit acknowledged the government was entitled to revenue sharing from bandwidth its ITC business supplied to its own IIG operation.

The company claimed it had been sharing such revenue based on verbal instructions from BTRC, but it could not produce any written directive or regulatory decision supporting the claim.

The hearing officer rejected Summit’s argument that no approved tariff existed for ITC operators at the time, finding the pricing violated Sections 29(Ga) and 50(1) of the Bangladesh Telecommunication Regulation Act, 2001, as well as relevant provisions of the Competition Act, 2012.

The report also noted that ITC licensing guidelines do not permit operators to provide services without commission-approved tariffs.

The report further found that although Summit operates both its ITC and IIG businesses under the same Tax Identification Number and Business Identification Number, it was still required to maintain separate revenue accounts, since the two licences carry different revenue-sharing obligations.

The hearing officer found no violations of the Infrastructure Sharing Guidelines during the inspection.

In his recommendations, Brig Gen (Retd) Iqbal endorsed the findings that Summit had breached telecommunications law, but noted the company had apologised for the violations and suggested the penalty could be reconsidered. After reviewing the report, however, the commission decided to reinstate the fine in full.

The commissioner confirmed to The Daily Star that the commission had decided to uphold the fine.

Summit Communications told this newspaper that as of yesterday, it has not yet received any official communication from BTRC regarding the reinstatement of the fine.

The company said it had clearly stated its grounds during the BTRC hearing -- that the penalty does not correctly reflect the applicable laws or factual circumstances.

“If BTRC nevertheless decides to uphold the penalty, we will pursue legal recourse available to us under the Bangladesh Telecommunication Act, 2001 and/or any applicable laws,” it said.

Noting that its ITC and IIG licences are held by the same legal entity, Summit argued that the provisioning of bandwidth between the two businesses is an internal allocation, not a commercial sale between independent entities.

“Till date BTRC has never approved any tariff or pricing methodology for bandwidth sale or allocation from ITC to IIG. In the absence of such regulatory guidance, Summit adopted the prevailing industry practice following the discussion and decision taken at the BTRC meeting held on 5 May 2021,” the company said.

The company also stated that it had reported the relevant information through the DIS Portal and paid applicable revenue sharing throughout.

“Summit acted on full transparency and after due consultation with BTRC,” it said, adding that when BTRC later took the position that such internal allocation should be based on market rate, the company complied immediately “to demonstrate our continued commitment to regulatory compliance.”

“In the absence of any BTRC approved tariff or prescribed pricing methodology for ITC to IIG bandwidth provisioning, we follow the prevailing industry practice,” it further said.

BTRC officials, speaking on condition of anonymity, said that although the ITC and IIG businesses are part of the same legal entity, they are required to hold separate licences for different services, each operating under a different regulatory framework.

“The so-called industry practice was improper. It has now been uncovered, and those involved have been penalised. No previous commissions had dared to investigate these practices before the fall of the previous government,” one official said.

Iran and the US have both announced rival blockades of the Strait of Hormuz once again, crippling an already fragile ceasefire deal.

This should alarm oil traders who had been pricing in a rapid return to normal. But markets appear sanguine – and that may be a miscalculation.

The global oil and gas market proved remarkably resilient during the 108-day conflict, thanks in large part to the ample global reserves present before the war began on February 28.

But the energy market is no longer protected by ample emergency stocks, so the margin for error has become a lot smaller.

President Donald Trump said on Monday that the US was reinstating its blockade of Iranian shipping in the Strait of Hormuz.

This followed Iran’s declaration over the weekend that it was closing the waterway amid fresh missile and drone attacks between the two sides.

This leaves the June 17 interim ceasefire on shaky ground.

Trump also said Washington would become the “guardian of the Hormuz Strait”, ensuring the shipping chokepoint – through which a fifth of global oil and liquefied natural gas supplies previously transited – remained open to all other vessels.

In turn, the US would be reimbursed at a rate of 20 percent, Trump added.

Meanwhile, Yemen’s Iran-aligned Houthis on Monday threatened to disrupt ships transiting the Red Sea to the Suez Canal.

This potentially opens a new front in the regional war which could challenge cargoes seeking to bypass the strait.

The oil market response to all this has been surprisingly subdued.

Global benchmark Brent crude futures have risen over 10 percent to above $80 a barrel since the latest round of tit-for-tat attacks erupted last Tuesday.

That rise may be significant, but prices remain well below the wartime peak of $118 reached in late March.

Investors appear to be discounting the chances of a return to full-scale war and a complete shutdown of oil and gas flows through Hormuz.

That is a reasonable assumption – but it is still a risky one.

Neither side appears eager to return to war. Iran has been severely weakened by months of US and Israeli bombardment and stands to receive a substantial economic windfall from the interim agreement.

This is due to promised sanctions relief, unfrozen funds and potential investment. A renewed conflict would put all that at risk.

Trump, meanwhile, is unlikely to welcome a surge in domestic gasoline prices during the peak summer driving season, especially in the months before the crucial midterm elections in November.

Trump’s proposal to impose a fee on Hormuz transits also appears highly fanciful. For decades, the US has championed freedom of navigation.

Any attempt to impose mandatory tolls on vessels merely passing through an international strait would face formidable legal challenges.

The UN shipping agency said as much on Monday: “There is no legal basis through which to introduce mandatory tolls simply to transit through a strait.”

Does this mean Iran and the US will refrain from implementing their respective blockades? Probably not.

Both sides likely believe short-term blockades will do little damage to their respective positions.

Tehran is betting that Trump will ultimately accept some form of Iranian oversight of traffic through Hormuz.

They expect him to tolerate fees on passing vessels because of the US president’s political vulnerabilities.

Trump, for his part, appears to believe that pressure on Iranian exports will force Tehran to abandon its claims over the waterway.

What’s more, Trump may have been lulled into complacency by the energy market’s remarkable resilience during the war.

He may also rely on the rapid bounce back to prewar prices after the announcement of the June deal.

But prolonging this standoff – let alone returning to a new intensive phase of fighting – comes at a much higher risk than it did a few months ago.

That’s because the world’s oil safety cushion has been dramatically depleted.

During the 4.5-month conflict, governments, refiners and traders released record volumes of crude and fuel from emergency reserves.

This helped offset the loss of around 13 million barrels per day (bpd) of Middle Eastern exports.

Those releases helped prevent the kind of price shock many analysts feared at the start of the war, but they came at a cost.

According to the International Energy Agency, observed global oil inventories fell by a cumulative 360 million barrels between March and May, equivalent to around 3.9 million bpd.

Onshore stocks continued to decline in June, dropping by a further 96 million barrels, or roughly 3.2 million bpd.

The erosion has been particularly striking in the US.

Having exported record volumes of crude and refined products during the conflict, US inventories have been drawn down to lows not seen in decades.

Total crude and refined product stocks are at their slimmest since 2003, while gasoline inventories are at their lowest level for this time of year since 2012.

This leaves an exceptionally thin buffer against supply disruptions. That vulnerability has not gone unnoticed in Washington.

Earlier this month, Vice President JD Vance argued that the US-Iran agreement would provide the world with time to rebuild depleted oil reserves before any potential resumption of hostilities.

Based on current inventory levels, the world needs a lot more time.

For now, then, the oil market is probably right to assume that neither Trump nor Iran’s hardline clerics are actively seeking another full-scale conflict in the Middle East.

The most likely outcome remains a face-saving compromise that allows each government to claim victory. But that does not mean the danger has passed.

Both sides are engaged in high-stakes brinkmanship, which often produces miscalculations.

A missile strike, a naval incident or an attempt to enforce rival claims over the strait could trigger an escalation neither side intends.

And unlike in February, when inventories were full and emergency reserves abundant, the global oil market has far less capacity to absorb another major shock.

That may prove to be the most important lesson investors are missing today.