RSGT Bangladesh, the country's first international container terminal operator, on Tuesday officially launched full-scale operations at the Patenga Container Terminal after investing $170 million over the past two years, aiming to enhance cargo handling capacity, reduce vessel turnaround time and strengthen Bangladesh's maritime logistics.

The inauguration ceremony in Dhaka was attended by Finance Minister Amir Khasru Mahmud Chowdhury as chief guest, alongside senior officials from the governments of Bangladesh and Saudi Arabia, underscoring growing bilateral cooperation in trade, logistics and investment.

RSGT Bangladesh said it has completed the deployment of modern container handling equipment, digital systems and operational infrastructure, marking the completion of its transformation of the Patenga Container Terminal under a 22-year concession agreement with the Chittagong Port Authority (CPA).
Since taking over operations in 2024, the company has invested in expanding the terminal's capacity and modernising its facilities.

The company said it has committed $170 million to develop the terminal into an international-standard facility.

Among the major investments are $30 million for four ship-to-shore (STS) cranes and $25 million for 14 hybrid rubber-tyred gantry (RTG) cranes. It also invested $3 million in a container scanner while expanding container yards, warehouse facilities and digital operations.

According to the company, the terminal now operates with a full fleet of modern container handling equipment and internationally trained personnel.

RSGT Bangladesh began commercial operations at the terminal in June 2024 by handling its first commercial vessel. It later introduced full import and export container operations, implemented digital process automation through an e-portal and obtained Green Terminal Certification from Bureau Veritas.

The company said the terminal has grown from handling only a few thousand containers during its initial months to becoming a modern international gateway capable of supporting Bangladesh's expanding external trade.

Speaking at the event, company officials thanked the Chittagong Port Authority for its support throughout the project's implementation, describing the development as an example of successful public-private partnership in port infrastructure.

They said the modernisation of the terminal is expected to improve operational efficiency, shorten vessel turnaround times, increase cargo handling capacity and strengthen Bangladesh's position as a regional trade and logistics hub.

The inauguration was attended by senior representatives from the Saudi Ministry of Investment and the Ministry of Transport and Logistics Services, the chairman of the Chittagong Port Authority, the Saudi ambassador to Bangladesh, executives from leading global shipping lines, including Maersk, CMA CGM, MSC and PIL, as well as representatives from BGMEA, BKMEA, BIDA, ICD operators and shipping and clearing agents' associations.

RSGT Bangladesh, a subsidiary of Saudi Arabia-based Red Sea Gateway Terminal Group, is operating the Patenga Container Terminal under a 22-year concession agreement with the Chittagong Port Authority. The company said it will continue investing in technology, infrastructure and workforce development to support Bangladesh's growing trade and logistics sector.

Speaking as the chief guest, Amir Khasru Mahmud Chwdhury said the entry of Saudi Arabia's RSGT into Chattogram is seen as a vital step toward fixing the long-standing logistics issues that plague the local business community -- primarily vessel turnaround and delivery times.

"Every hour and every day costs money in business," the minister noted, stressing that port efficiency is the backbone of the country's economic growth.

The goal is to establish Chattogram as the primary logistics hub not just for Bangladesh, but for the entire South Asian region, he said.

Reflecting on the historical relationship between Dhaka and Riyadh, the minister said the deepening Saudi-Bangladesh ties began with former president Ziaur Rahman's close relationship with the Saudi royal family.

The relationship expanded significantly under Khaleda Zia, paving the way for over 4 million Bangladeshi expatriates currently working in Saudi Arabia.

The minister welcomed RSGT's presence as a natural continuation of this historic bond and urged the Saudi firm to look beyond the port sector for future investments, promising the government's full support.

Aamer Abdullah Zainal Alireza, executive chairman of RSGT, and Erwin Haaze, CEO of RSGT Bangladesh, also spoke at the event.

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.

Bangladesh has called for stronger United Nations support to ensure a sustainable graduation from the Least Developed Country (LDC) category, implement the Sustainable Development Goals (SDGs), and advance the government's reform agenda.

Prime Minister's Finance and Planning Adviser Rashed Al Mahmud Titumir made the appeal during separate meetings at the UN Headquarters in New York with UN Under-Secretary-General Li Junhua, Executive Secretary of the UN Economic and Social Commission for Asia and the Pacific (UNESCAP) Armida Salsiah Alisjahbana, and UNDP Regional Director Kanni Wignaraja.
During the meetings, Titumir reiterated Bangladesh's request for a three-year extension of its LDC graduation preparatory period. He also outlined the government's "3R" strategy – Recovery, Restoration and Reconstruction for Acceleration – to restore macroeconomic stability and implement institutional reforms following the public mandate expected from the February 2026 national election.

UN representatives reaffirmed their continued support for Bangladesh's LDC graduation process, governance reforms, climate resilience initiatives and expansion of social protection programmes.

Photo: Courtesy
Photo: Courtesy

In his meeting with Li Junhua, Titumir formally presented Bangladesh's request for the extension, saying additional time is needed to maintain macroeconomic stability, effectively implement the Smooth Transition Strategy and ensure a sustainable and irreversible graduation from LDC status.

Li assured Bangladesh of the UN Department of Economic and Social Affairs' continued support and pledged to work closely with the country to facilitate a successful transition.

Bangladesh seeks stronger global support to bridge $132b SDG financing gap

Separately, speaking at the General Debate of the High-Level Political Forum on Sustainable Development (HLPF) 2026 at the UN Headquarters on Monday, Bangladesh's Country Statement highlighted the need for stronger international support, including grants, concessional financing and technology transfer, to bridge an annual SDG financing gap of more than $132 billion and accelerate progress towards the 2030 Agenda.

The statement said Bangladesh continues to face significant financial constraints in achieving the SDGs, particularly in clean energy, economic growth and infrastructure. It also noted a 37% funding shortfall for supporting around 1.3 million Rohingya refugees, with an immediate financing gap of approximately $261 million.

BMW is betting on its long-awaited Neue Klasse electric cars to revive its fortunes in China after two years of declining sales. The problem for the German automaker is that China's EV race may have already moved on without it.

BMW, under new CEO Milan Nedeljkovic, issued a shock profit warning last month that it partly blamed on China - its third in less than three years. On Friday, it said China sales plunged 30% in the second quarter.

Some shareholders and analysts say BMW has moved too slowly to bring its long-trailed Neue Klasse, or "new class", EVs to a market where Chinese rivals are developing increasingly sophisticated electric cars in as little as 18 months - roughly twice as fast as traditional automakers.

"If this had launched two years ago it could have been a game-changer," said Yale Zhang, managing director at Shanghai-based research firm Automotive Foresight. "In today's Chinese auto market ... it is hard to stand out."

Chinese buyers increasingly expect the latest technology from home-grown carmakers such as Nio, which has driven its flagship ET9 saloon over speed bumps with a tower of champagne glasses balanced on the bonnet — without spilling a drop — to showcase the vehicle's advanced suspension system.

BMW's first Neue Klasse model for China, the iX3 SUV, is due to go on sale in November.

Combustion-engine heritage in EV-heavy market

BMW's challenge reflects the broader struggle facing German premium automakers in China, where the engineering pedigree and combustion-engine heritage that help sell high-margin models in Europe and the US carry less weight with many buyers.

"Chinese consumers no longer buy into that," said Wang Xianbin, vice president of the Gasgoo Research Institute.

Instead, they favour local brands such as Nio, Geely's Zeekr and Xiaomi, which offer intelligent EV features tailored to Chinese tastes.

Chinese premium brands are openly targeting customers of BMW, Audi, Porsche and Mercedes.

Only about 5% of BMW's sales in China are fully electric, according to Global Mobility data, in a market where EVs account for 46% of vehicle sales. BMW's China sales fell in both 2024 and 2025. Sales at Mercedes and Volkswagen's Audi brand are also down, dropping 28% and 19%, respectively, in the first half of this year.

Hendrik Schmidt of DWS, a top-10 BMW investor, said direct China experience was limited among the company's top executives and supervisory board, adding that the scale of the challenge had not been fully appreciated.

"From our perspective, the dynamics here have been considerably underestimated," he said.

A company spokesperson said BMW's senior management had extensive experience in China and the company pursued a country-specific product strategy that includes "a greater focus on highly integrated digital services, advanced connectivity features, and rear-seat comfort".

According to Shanghai consultancy LandRoads, BMW's average transaction price in China in 2025 was 341,000 yuan ($50,200), below local brands such as Nio, Aito and Denza. Among German premium brands, only Audi was priced lower, at 287,000 yuan.

BMW lowered some of its list prices in China in coordination with local authorities in the first quarter, the spokesperson said. Independent dealers are also free to set their own sales prices and discounts, she added.

But analysts say price cuts alone are no longer enough. Chinese buyers still want value for money, while Zhang said local rivals are "armed to the teeth with cutting-edge features".

"Chinese consumers today don't just pick a car based solely on deep discounts," Gasgoo's Wang said.

'A concern from two or three years ago'

As BMW's former production chief, Nedeljkovic is considered one of the architects of the Neue Klasse, a platform underpinning 40 new launches by next year that has generated encouraging early demand in Europe.

The China launch of the iX3 was delayed after BMW switched from in-house technology to Chinese partner Momenta to provide assisted-driving technology, a feature many local consumers now consider essential.

The spokesperson said BMW has a different approach to so-called China speed, pointing to thorough tests throughout the development process to ensure customer safety.

Gasgoo's Wang said he first heard about the model four years ago but argued the market has changed since then, with BMW's marketing around range anxiety already sounding dated.

"That was a concern from two or three years ago," said Chang Yan, the founder of Supercharged, a popular EV-focused blog on China's Weibo platform.

He said the attributes often celebrated as technological superiority in Europe - handling and performance - do not necessarily resonate as strongly in China, where domestic brands have become "far more aggressive in design and features".

Gasgoo's Wang said BMW's product development remained heavily driven from Munich headquarters and the company did not fully understand what Chinese consumers want.

"Overall, it's clear that BMW is one step behind," Wang said.

Changes to the VAT-payment schedule could put immense pressure on field officials to achieve the government's ambitious VAT-collection target of Tk 2.23 trillion in the current fiscal year, according to tax officials.

Field-level VAT officials say they would effectively have only nine months of revenue reflected in this fiscal year's collection as VAT for the final quarter would be deposited in July - the first month of the following fiscal year - under the revised payment schedule.

In the Finance Bill 2027, the government has made VAT payment and VAT return submission simpler by extending payment and submission schedules to three months from every month.

It was the long-awaited demand from businesses who found the monthly compliance requirements time-consuming.

Officials say VAT zones would have to mobilise exceptionally high revenue every quarter -- and every month -- to meet the target, making the goal extremely difficult unless the government amends the provision or makes special arrangements for the current fiscal year.

The original VAT collection target for FY26 was Tk 1.86 trillion, but actual collection reached Tk 1.55 trillion.

To achieve the FY27 target of Tk 2.23 trillion, the VAT wing will have to raise collections by approximately 44 per cent over last year's actual receipts.

This means an additional Tk 680 billion must be mobilised during the current fiscal year.

VAT contributes around 37 per cent of the total domestic revenue mobilisation.

Field officials say because the revised payment schedule would effectively leave only three revenue-generating quarters within the fiscal year, the burden would be even heavier.

They estimate VAT offices would need to mobilise around Tk 743.3 billion in each of the three recognised quarters to remain on track.

Unless there is a significant expansion of economic activity, stronger VAT compliance, resolution of pending litigation, improved enforcement, and substantial gains from digitalisation, and anti-evasion measures, achieving the target will be extremely challenging, officials say.

The new target is also substantially higher than last year's original target of Tk 1.86 trillion, underscoring the government's increasing reliance on VAT to meet its overall revenue objectives.

"The last quarter is traditionally the strongest period for VAT collection, with revenue often nearly doubling compared to that of the other quarters," a senior field-level VAT official says.

"If those receipts are shifted to the next fiscal year because of the revised payment schedule, the revenue shortfall this year could be significant."

Officials note that the FY27 VAT target is around 44 per cent higher than last year's actual collection, placing unprecedented pressure on field offices.

They warn that unless the government introduces a special transition arrangement for the current fiscal year, VAT collection is likely to fall well short of the target.

However, they believe the problem would largely disappear from the following fiscal year once the new payment cycle becomes fully operational.

Former VAT officials, however, downplay the concern, arguing that the impact may not be as severe because a substantial portion of VAT is collected at source.

A former VAT member says VAT deducted at source would continue to provide a steady stream of revenue despite the change in payment timing.

Current field officials disagree with this, saying only about 30 per cent of VAT is collected at source -- primarily through government entities -- while the remaining 70 per cent depends on regular payments by businesses.

The government has set a VAT collection target of Tk 2.23 trillion for FY27, up from the actual collection of Tk 1.55 trillion in the previous fiscal year.

In parliament, Finance Minister Amir Khosru Mahmud Chowdhury said on Monday the government collected Tk 4.10 trillion in total revenue during FY26 against a target of Tk 5.03 trillion, achieving 81.6 per cent of its overall revenue goal.

According to the minister, income tax collection stood at Tk 1.42 trillion against a target of Tk 1.86 trillion, representing an achievement rate of 76.7 per cent.

VAT collection reached Tk 1.55 trillion against a target of Tk 1.86 trillion, achieving 83.7 per cent of the target.

Meanwhile, customs revenue amounted to Tk 1.11 trillion against a target of Tk 1.30 trillion, meeting 85.3 per cent of its target.

Former VAT member Farid Uddin says the changes in VAT payment schedule would not be a problem; it would rather help businesses reduce time and cut the cost of doing business. Some 95 per cent of domestic VAT comes from tobacco, mobile, and pharmaceuticals companies and VAT deducted at source, he says.

The rest of the businesses pay a negligible amount of VAT that would not affect the collection much, he adds.

Incessant rain across the country over the past week, coupled with flooding in the southeast, is threatening to push up prices of food and other essential goods.

Businesses say the downpour has disrupted the entire supply chain, from loading and unloading vessels at Chattogram port to trading at major wholesale markets and transporting goods across the country.

The monsoon rains have also submerged large areas of farmland, damaging vegetables and other crops. Getting farm produce to major urban markets has become more difficult, with vegetable prices already rising in Dhaka.

Some dry food items, including flattened rice, puffed rice, vermicelli, biscuits, noodles and dates, have become more expensive as demand has surged because of flood relief campaigns.

Businesspeople say prices of most other food items are stable for now, but prolonged disruptions could trigger wider market volatility.

Bangladesh relies heavily on imports for essential commodities such as sugar, edible oil and wheat. These bulk goods are transferred from mother vessels to lighter ships, which then carry them across the country through inland waterways.

Over the past week, rough seas and heavy rain severely disrupted the transfer of cargo from larger ships to lighter vessels.

Only five to 10 lighter vessels loaded cargo from larger ships each day over the past week, compared with the usual daily average of 40 to 50, said Gazi Belayet Hossain, president of the Bangladesh Cargo Vessel Owners’ Association.

Loading and unloading resumed yesterday morning as sea conditions improved. However, Belayet said more than 400 lighter vessels were still waiting to load cargo as of yesterday, and it would take a few days for operations to return to normal.

Meanwhile, traders at major wholesale markets in Chattogram’s Khatunganj, Chaktai and Asadganj markets said daily trading had fallen sharply because buyers from nearby districts were unable to reach the markets.

“Business has slowed because wholesale buyers from different districts are unable to come to the market,” said Aminul Haque, a wholesaler at Khatunganj.

Demand for dry food, however, has risen. Prices of chira, muri and vermicelli have increased by Tk 3 to Tk 5 per kilogramme.

The wholesale price of a 25-kilogramme sack of standard-grade flattened rice has risen to Tk 1,300 from Tk 1,200 a week ago. Puffed rice now sells for Tk 65 to Tk 68 per kilogramme, up by Tk 2 to Tk 3, while a 30-kilogramme basket of loose vermicelli has increased to Tk 1,050 from

Tk 900. Prices of dates have also risen by Tk 20 to Tk 30 per kilogramme.

“We think this is a temporary increase driven by the floods,” Aminul told The Daily Star.

Heavy rain also disrupted the loading of essential goods onto trucks, while transport shortages made the situation worse.

As many as 408 unions across Chattogram division have been affected by flooding, waterlogging and landslides. Khagrachhari has been the worst-hit district, with around 73 percent of its area affected, followed by Chattogram at 50 percent and Cox’s Bazar at 49 percent.

Road links with Cox’s Bazar, Bandarban, Rangamati and Khagrachhari have been disrupted by waterlogging and landslides in hilly areas, making it difficult to transport goods to those districts, traders said.

Despite these disruptions, businesses in Chattogram said wholesale supplies of rice, lentils, sugar and edible oil are adequate. However, the market could become volatile if the rain and flooding continue.

Like Chattogram, wholesalers in Dhaka also reported supply disruptions.

Mostafa Kamal, a vegetable wholesaler at Karwan Bazar, said supplies have fallen because of heavy rain and flooding, pushing wholesale prices up by about 10 percent compared with normal levels.

He said persistent rain has disrupted harvesting and transport, making it difficult for farmers to send produce to market.

Abu Bakar Siddique, a grocery trader at Karwan Bazar, said flooding and waterlogging have disrupted supplies of edible oil, sugar and flour.

“For the last four to five days, companies have been unable to meet even half of the existing demand,” he said.

Although wholesale prices have risen only slightly, retail prices of some essential goods, especially dry food items, have increased because of higher transport costs and supply shortages, he added.

Meanwhile, some industrial groups said flooding and waterlogging have disrupted their supply chains, making it difficult to deliver products.

SM Mujibur Rahman, head of accounts of Meghna Group of Industries, said the company usually delivers 280 to 300 tonnes of goods a day but managed only around 50 to 60 tonnes daily over the past week.

Mujibur said the situation has worsened after rainwater partially submerged the company’s depot premises in Chattogram. The company was unable to move vehicles from the depot for four days.

Md Shafiul Ather Taslim, director for finance and operation of TK Group, said the company had been struggling to secure enough transport over the past two to three days.

“When available, vehicles were unable to reach many areas due to a cut off supply network.”

He added that deliveries had been disrupted in several areas, including Rangamati, Khagrachhari, Bandarban, Cox’s Bazar, Satkania, Lohagara and parts of Sylhet city.

Taslim said the impact has not yet become significant because dealers still have enough stock available.

India rejected a quick trade agreement with the US in recent talks and is holding out for a better deal as Prime Minister Narendra Modi draws confidence from new trading partners, eased economic risks and political gains at home, officials and analysts said.

After months of talks, the two nations failed to finalise an interim trade agreement during US Trade Representative Jamieson Greer's visit to New Delhi last month, despite expectations from both sides that a limited deal was within reach.

There was no consensus because Washington did not offer assurances on New Delhi's key demands: a tariff advantage over competitors such as China and no new US levies after the deal, said an Indian government official aware of the talks.

"Our position is clear - we don't intend to rush into a deal that is not on favourable terms or compromise on red lines like ceding ground on agriculture," the official said.

Washington had hoped for quick trade concessions from a strategic partner as President Donald Trump prepares new tariffs likely to come into effect later this month, officials and analysts said, while India's holdout risks higher levies on its exports and prolonged uncertainty for businesses.

A day after talks with Greer, Indian Trade Minister Piyush Goyal said the US deal would not be implemented unless an advantage is ensured, indicating New Delhi's hardened position and lack of urgency despite the risk of higher tariffs.

Like most countries, the bulk of goods from India currently face a 10% US tariff. But the Trump administration is expected to introduce steeper tariffs later this month through probes into excess industrial capacity. India has denied US charges of surplus capacity.

Washington has already proposed new tariffs of up to 12.5% on dozens of nations, including India, over allegations they failed to curb trade in goods made with forced labour.

The US view has been that India needs to earn the preferential treatment on trade provisions it has sought by making its own concessions, a US source aware of the talks said.

The Indian official and the US source did not wish to be named as negotiations are confidential. The Indian trade ministry and the Office of the United States Trade Representative did not respond to emailed requests for comment.

A US official, speaking on condition of anonymity, said Washington remained engaged with India and still expected an agreement, but did not offer a timeline.

The official however added India had at times been slow, bureaucratic and difficult in the negotiations, signalling that no quick deal was likely.

Asked about the impasse, White House spokesman Kush Desai said: "The Trump administration continues to productively engage with Indian officials to finalise a historic trade deal that puts Americans and America First."

India's exports tick up, economic risks ease

Rising exports, new trade deals with other countries and blocs and eased economic risks have strengthened India's hand, trade analysts said.

In April-June, India's overall goods exports rose about 15% from a year earlier despite disruptions from the war on Iran, buoyed by pricier petroleum shipments, officials said.

Exports to Gulf countries have recovered to pre-war levels, rising to $5.3 billion in May from $2.62 billion in March as traders shifted to alternative shipping routes, while exports to the United States edged up to $17.29 billion during April and May.

India is also broadening access to other developed markets, with a UK free trade pact set to take effect this month, and an EU agreement expected by early next year.

"Indian negotiators have gained some leverage in the talks, given its strong economy, diversification initiatives with other partners, and its strategic standing in the world," said Wendy Cutler, senior vice president at the Washington-based Asia Society Policy Institute, and a former US trade official.

The interim US-Iran peace deal improved India's economic outlook by easing oil prices, Goldman Sachs economist Santanu Sengupta said in a report.

The bank has raised its 2026 growth forecast for India to 6.8%, and lowered its inflation and current-account deficit estimates, suggesting New Delhi has more economic room to hold out for better terms.

A weaker rupee has also improved exporters' competitiveness.

Waiting out Washington

India is also calculating that some US trade measures could face legal or political setbacks, another Indian official said.

A group of 22 Democratic state attorneys general have already filed objections to the Trump administration's proposed tariffs from probes into forced labour.

Trade analysts said legal uncertainty over US tariffs, combined with Modi's recent state election victories, have helped India resist a rushed deal.

Senior leaders of Modi's Bharatiya Janata Party have argued publicly that trade agreements should protect Indian farmers and small businesses, two politically influential constituencies that New Delhi has long shielded in trade negotiations.

"India realises that delaying - or even abandoning - a rushed deal may be more prudent than locking into obligations whose costs could far exceed any temporary tariff relief," said Ajay Srivastava, founder of the Global Trade Research Initiative, and a former trade negotiator.

China’s economy likely slowed in the second quarter after a solid start to the year. Weak domestic demand offset the boost from resilient exports during a global oil shock, fueling expectations for fresh policy stimulus.

Beijing is grappling with a deepening supply-demand imbalance. Strong industrial output, buoyed by AI-driven exports, contrasts with weakening consumption and private investment amid a prolonged property downturn and volatile global oil prices.

Gross domestic product is forecast to have grown 4.5 percent year-on-year in April-June, cooling from 5.0 percent in the first quarter, a Reuters poll of 54 economists showed.

The projected pace would mark a fall from the 4.7 percent growth forecast in a Reuters poll in April. It would be at the lower end of the official full-year target of 4.5-5 percent.

Growth has become more uneven. Exports continue to support headline activity, but domestic demand has softened notably, analysts at Goldman Sachs said in a note.

Moreover, the boost from exports has not translated into a stronger labour market or meaningful profit improvement. This limits the pass-through from external demand to domestic growth.

China’s exports, due for release on Tuesday, likely grew at a slightly slower but still-solid pace in June. Firms accelerated shipments to the US ahead of potential new tariffs.

They also rode the AI boom. Additionally, companies competed aggressively on prices to win over cost-conscious consumers.

Investors are closely watching an expected late-July Politburo meeting for clues on fresh stimulus. This could shape policy for the rest of the year.

Analysts expect no aggressive action unless growth slows more sharply. This is given resilient exports and Beijing’s focus on curbing excess factory capacity to fight deflation.

GDP growth is projected to edge up to 4.6 percent in the third quarter. It is then expected to slow to 4.5 percent in the fourth, according to the poll.

For 2026 as a whole, China’s GDP growth is forecast to cool to 4.6 percent from 5.0 percent last year. It is projected to ease further to 4.4 percent in 2027.

On a quarterly basis, the economy is forecast to have expanded 0.9 percent in the second quarter. This marks a slowdown from 1.3 percent in January-March.

The government is due to release second-quarter GDP data on July 15. June retail sales, industrial production and investment data will come out at 0200 GMT.

Analysts expect China to lean on fiscal policy to cushion any further slowdown. The central bank has limited room for high-profile easing even after the retreat in oil prices.

The government is expected to speed up fiscal spending after a second-quarter slowdown. This followed front-loaded support early in the year.

Beijing has set a budget deficit of around 4 percent of GDP for 2026. It has also lined up heavy bond issuance to shore up growth.

China’s growth should pick up over the second half of this year as fiscal support ramps up, Capital Economics said in a note.

But domestic overcapacity will remain entrenched. This leaves China’s economy reliant on exports for growth.

Analysts polled by Reuters expect the central bank to keep its key policy rate unchanged for the rest of 2026. The seven-day reverse repo rate will remain steady.

They also expect the weighted average reserve requirement ratio to remain steady in the third quarter. A possible 20-basis-point cut is expected in the fourth.

The central bank has left policy rates and RRR unchanged since May 2025. It opted instead to use short-term liquidity operations to keep funding conditions supportive.

This comes while overhauling its monetary policy framework and strengthening policy transmission. Analysts estimate a 1.2 percent rise in consumer prices for this year.

This is below the government’s target of around 2 percent. Inflation is expected to steady at 1.2 percent in 2027.

Iranian oil supplies at sea are rising after Tehran ramped up exports during the interim peace deal with the US. However, sales have been slow.

China’s independent refiners have turned to cheaper crude from Iraq, the UAE and Qatar. The return of US sanctions this week risks leaving Tehran with more cargoes searching for buyers just as shipments arrive in Asia.

Independent Chinese refiners based in the eastern oil hub of Shandong, known as teapots, bought 16 million to 20.5 million barrels of crude from Qatar, Iraq and the United Arab Emirates in recent weeks, traders said.

This marked their largest purchases of non-sanctioned Middle Eastern oil since the conflict began. Shandong teapots account for the bulk of China’s purchases of Iranian crude. State refiners have largely avoided direct imports since 2018.

Separately, privately owned refiner Shenghong Petrochemical bought 12 million barrels of Iraqi, Abu Dhabi and Saudi crude. The wave of non-Iranian cargoes displaced demand for Iranian barrels as rival Middle Eastern producers rushed to resume exports.

This followed the reopening of the Strait of Hormuz in late June. The rush of non-Iranian shipments was sold on a delivered basis by European traders such as Mercuria and Vitol.

State majors including PetroChina International and Zhenhua Oil, and Gulf producer Abu Dhabi National Oil Company also took part. The sales were done at discounts of $5 to $8 a barrel to ICE Brent.

These deliveries are scheduled for August to September. Discounts for Iranian Light crude, however, were little changed at $2 to $3 a barrel to ICE Brent, according to several traders active in dealing with teapots.

This prompted two traders to describe the sellers as slow and stubborn. Ironically, Iranian oil becomes the most expensive, a senior trader remarked.

Traders said the week of funeral events that ended in the burial of the slain Supreme Leader also slowed sales. Offices were closed during the mourning period.

Traffic through the vital waterway has slowed again this week after tit-for-tat attacks between the US and Iran. Between June 15 and July 6, about 30 million barrels of Iranian oil were loaded.

This volume is equivalent to 1.35 million barrels per day, according to tanker tracker Vortexa Analytics. Kpler recorded an estimated 34.5 million barrels of Iranian crude transiting the Strait of Hormuz on 21 tankers. This transit occurred from June 14 through July 10. An estimated 60.7 million barrels, averaging 2.17 million barrels per day, were exported in February 2026.

This was an increase of 20 percent from January 2026, according to analysis from US advocacy group United Against Nuclear Iran. That number dropped to 35.7 million barrels in March, averaging 1.136 million barrels per day.

Since the ceasefire deal announced June 14, 52 tankers have sailed with Iranian oil and petrochemicals products. They carried approximately 62 million barrels of Iranian crude oil and products, UANI analysis showed.

Of those vessels, 15 have reached the Singapore Strait. They are bound for the Eastern Outer Port Limits anchorage around Malaysia’s Johor area, according to UANI analysis.

Three Iranian-flagged very large crude carriers have already discharged their cargoes. Tehran shipped out no less than 10 million barrels of crude oil and fuel oil overnight, TankerTrackers.com said in a post.

They did this anticipating a possible imminent resumption of the US navy blockade. The US Central Command did not immediately respond to a request for comment.

Traders expect Iranian oil sales to pick up next week. Independent refiners are expecting $4 to $5 discounts for August to September arriving cargoes.

China’s Iranian oil imports so far this month came at 556,000 bpd, Kpler data showed. This marks the lowest level recorded since January 2023.

Bangladesh has retained its position as the world's second-largest apparel exporter, but its export growth slowed sharply in 2025, trailing almost all of its major Asian competitors as rivals gained ground in the global market.

According to World Trade Organization (WTO) data released recently, Bangladesh exported $38.82 billion worth of garments in 2025, up just 0.89% from $38.48 billion a year earlier.

The slight increase was well below the 4.46% growth recorded by the global apparel market, reflecting that Bangladesh is losing momentum even as worldwide demand recovers.

Only China, Türkiye and the United States posted declines among the major exporters.

Vietnam, Bangladesh's closest competitor, recorded 10.53% growth to $37.51 billion, narrowing the gap between the two countries to just $1.31 billion. Cambodia registered the fastest expansion among leading exporters at 16.88%, while Pakistan grew 6.83%, Indonesia 5.79%, and India 5.47%.

Fazlul Haque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association, said the slowdown in Bangladesh's export growth was the main concern as competing countries were outperforming it in the global market.

"China and Vietnam pursued aggressive marketing over the past year, particularly after Trump imposed tariffs and Bangladesh could not match that effort. As a result, we have fallen behind in this challenging market, while our competitors have moved ahead," he said.

He warned that unless Bangladesh regains its lost ground quickly, the decline in market share could become permanent. "If buyers who once sourced 50% of their orders from Bangladesh cut that to 45% and shift the rest elsewhere, it may be difficult to win them back. We need to act now and take prompt measures to regain our lost position."

Bangladesh retains 2nd positon

Despite the sluggish performance, Bangladesh maintained a 6.76% share of global apparel exports, behind only China, which accounted for 27.35% of the market.

However, Bangladesh's market share slipped from 7% in 2024, while Vietnam's rose from 6.17% to 6.53%, bringing it closer than ever to overtaking Bangladesh.

Exporters said Bangladesh is struggling to capture new orders at a time when many competing manufacturing hubs are expanding rapidly.

The country's apparel industry has faced a series of challenges in recent years, including persistent energy shortages, elevated borrowing costs, political uncertainty and weaker investment in manufacturing capacity. Industry leaders have also repeatedly warned that gas shortages and rising production costs are eroding Bangladesh's competitiveness.

China, the world's largest exporter, continued to lose market share as exports fell 4.92% to $157.11 billion in 2025. Since 2021, China's share of global apparel exports has dropped from 31.71% to 27.35%.

Much of the business shifting away from China appears to be benefiting other Asian producers. Vietnam, Cambodia and Pakistan all outpaced global growth, while Bangladesh's expansion remained largely stagnant.

Bangladesh's export performance has also become increasingly volatile. After surging 27.64% in 2022 as global demand rebounded following the pandemic, exports fell 21.49% in 2023 before recovering 7.23% in 2024. The slowdown to less than 1% growth in 2025 suggests the recovery has lost momentum.

The Bangladesh Securities and Exchange Commission (BSEC) has undertaken a series of plans to revive the country's long-sluggish stock market by increasing the participation of institutional investors through removal of regulatory barriers in existing policies.

The newly appointed commission plans to review IPO (Initial Public Offering) rules to revive the primary market, simplify margin rules to improve money flow, and introduce performance-based mechanisms for mutual funds to attract institutional investors.

In an interview with The Business Standard, the newly appointed BSEC Chairman Masud Khan said his immediate priority is to maximise deregulation to ensure the market's natural growth, and aggressively bring fundamentally strong scrips and listings into the market.

He also plans to ease bureaucratic bottlenecks by cutting down paper work through the introduction of automation in his office.

"The fundamental weakness of Bangladesh's stock market is that it has historically been dominated by retail investors. Institutional participation is virtually absent in the true sense," Masud Khan said.

He said the commission has already begun implementing reforms. "On my second day in office, I abolished the floor price mechanism. It had paralysed the market for nearly two years and caused unprecedented suffering."

He also cited resolving the Beximco Pharmaceuticals GDR issue on the London Stock Exchange and strengthening market surveillance as early achievements.

"The Dhaka Stock Exchange has been instructed to modernise its surveillance system within six months and introduce AI-based market monitoring within a year," he said.

IPO proceeds to be allowed for debt repayment

Current regulations limit the use of IPO proceeds for repaying bank loans to 30%.

Masud Khan said the commission is considering removing or substantially relaxing the restriction. "Companies burdened with expensive debt should be able to raise equity to deleverage. Lower borrowing costs ultimately benefit shareholders."

He also said IPO approvals have become excessively slow because past financial scandals prompted regulators to adopt an overly cautious approach.

According to him, the current Public Issue Rules contain several impractical provisions, including the requirement for at least 40 eligible institutional investors to participate in book building before price discovery can begin.

"In a market as shallow as Bangladesh's, that threshold is unrealistic," Masud said.

He added that the Dutch auction mechanism under the book-building system also needs reform. "We are re-examining the entire pricing mechanism to ensure companies receive fair, market-driven valuations."

Direct listing to be opened for high-cap private companies

The BSEC chairman said one of his biggest priorities over the next five years is to reform Bangladesh's direct listing regulations.

Current rules allow only state-owned enterprises to use direct listing.

"Right now, our direct listing rules are incredibly archaic; they explicitly state that only state-owned enterprises can utilise direct listing, completely barring the private sector. This is ridiculous, and I am going to change it immediately." he said.

"Furthermore, the old rules forced companies to offload a mandatory 25% of their shares right away. I am going to slash that threshold down to 10%," he added.

According to Masud, companies such as Banglalink or Incepta Pharmaceuticals should not have to undergo lengthy evaluations because they are already well-established businesses.

"The only time required will be for price discovery and the actual market offer," he said.

Large companies may be required to list

Masud Khan also wants legislation requiring large companies operating with substantial public funds to become listed entities.

He proposed defining Public Interest Entities (PIEs) as companies whose combined equity and outstanding debt exceed Tk300 crore. "If a private company's total capital employed (equity plus outstanding debt) crosses a threshold of, say, Tk300 crore, it is effectively operating on massive public funding. In my view, such companies should be legally mandated to list on the stock exchange."

He also proposed requiring multinational companies operating in Bangladesh to incorporate locally and list on the domestic bourse.

"Institutions such as HSBC and Standard Chartered operate as branches. I believe they should register as local companies and become listed," he said.

Pension, provident funds should invest in the market

Masud said provident, pension and gratuity funds represent a major untapped source of institutional investment.

Although legal amendments already allow up to 25% of these funds to be invested in listed equities, fund managers have largely avoided doing so because of market volatility.

"We must fix the institutional pipeline by enforcing the Trust Act. Right now, countless companies are flagrantly violating the Trust Act by taking their provident and gratuity funds and simply parking them as standard deposits in commercial banks," he said.

BSEC to introduce key performance indicators of mutual funds

The BSEC also plans to introduce internationally recognised key performance indicators (KPIs) for mutual funds.

These would include measures such as one-year NAV growth, rolling returns and expense ratios, with all data published on a central website.

"Investors will easily see which funds perform well and which consistently underperform," BSEC chairman said.

He ruled out extending the tenure of closed-end mutual funds. "Let me state this with absolute clarity: As long as I am the Chairman of the BSEC, no extension for any closed-end mutual fund will ever be granted."

Margin rules to be simplified

Masud Khan said existing margin lending regulations are overly restrictive and limit liquidity in the market.

Commercial banks currently have plenty of liquidity, but much of it cannot flow into the stock market because of rigid lending rules.

He said regulations such as suspending margin lending once a stock's price-to-earnings ratio exceeds 30 are too inflexible.

"BSEC will only set broad KPI boundaries. Beyond that, brokers will have the freedom to design their own risk management frameworks and determine who to lend to," Masud khan stated.

The International Monetary Fund (IMF) has asked the National Board of Revenue (NBR) how it plans to achieve its Tk6.04 lakh crore revenue target for the fiscal 2026-27, which is about 45% higher than the FY26 collection.

The IMF mission also sought details of the tax and fiscal measures introduced in the latest national budget during a meeting with senior NBR officials at the revenue authority's headquarters in Dhaka today (13 July), according to sources who attended the meeting.

On the same day, the IMF delegation led by Ivo Krznar, the mission chief for Bangladesh and Hong Kong, also met Finance Minister Amir Khosru Mahmud Chowdhury.

The IMF representatives arrived on Sunday for a five-day fact-finding mission to assess the feasibility of a fresh loan package worth nearly $4.5 billion proposed by the government.

The finance minister told journalists after the meeting that the IMF delegation had expressed appreciation for the government's financial reforms and its political commitment.

He said the government had clarified the principles on which its new programme with the IMF would be based, and that the IMF had fully agreed with the proposed framework.

"Major changes cannot be made overnight, and the IMF has agreed with this approach," the finance minister said, adding that reforms would be introduced in phases while taking into account the country's economic conditions and maintaining the continuity of the reform programme.

An NBR senior official, who attended the meeting and spoke to The Business Standard on condition of anonymity, said, "The representatives wanted to know how the revenue target for the new fiscal year would be achieved and what plans have been put in place to meet that goal.

"They also wanted to know what changes had been made in the latest budget. We briefed them on those changes."

He further said, "The mission also sought detailed explanations about the 0.20% tax imposed under the Finance Bill on the value of goods purchased by retailers, which will be collected at the dealer level."

NBR officials also told the IMF that a newly elected political government could not immediately withdraw all expenditure-related measures or tax incentives.

The official said, "The delegation were also informed that tax exemptions granted to various sectors are subject to sunset clauses. These cannot be withdrawn before their expiry, and a political government cannot simply abolish all exemptions whenever it wishes."

IMF 'satisfied' with revenue collection progress

According to the finance ministry, the IMF delegation expressed satisfaction with the growth in revenue collection during the first four months since the BNP-led government assumed office.

"The IMF delegation expressed satisfaction with the visible progress made during the current government's first four months in financial sector reforms, the development of the stock and capital markets, and revenue collection," Finance Minister Amir Khosru said.

The ministry said the IMF described the rise in tax collection over the four-month period as a significant achievement. It also held positive discussions with the government on proposals to further increase Bangladesh's tax-to-GDP ratio while maintaining the current momentum in revenue collection.

Khosru reiterated that reforms would be implemented gradually, based on priorities and in line with the country's overall economic conditions, adding that the IMF had endorsed this phased approach.

He said the IMF had also shown respect for the responsibilities and public welfare obligations of an elected government, adding that economic decisions would continue to be made with the public's interests in mind.

On subsidies, Khosru said no detailed discussions had yet been held on specific conditions or measures. The talks focused primarily on establishing the framework for a new IMF programme, while detailed issues would be discussed at a later stage.

He said the discussions were part of an ongoing process, with the next round of talks expected during the World Bank's annual meetings in September or October.

The finance minister added that the IMF was satisfied with the current government's reform-oriented performance and that a new programme would be finalised on that basis.

The Export Promotion Bureau (EPB) has proposed a total export target of $66 billion for the 2026-27 fiscal year, comprising $57 billion from merchandise exports and $9 billion from services sector.
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The EPB has submitted the draft proposal to the commerce ministry, requesting prompt review and approval of the targets.

The proposed benchmarks were finalised during a stakeholder consultation, chaired by EPB Vice Chairman and CEO Mohammad Hasan Arif.

Representatives from government ministries and agencies, and export-oriented trade organisations, including BGMEA, BKMEA, BAPA, the Metropolitan Chamber of Commerce and Industry (MCCI), and the Bangladesh Frozen Foods Exporters Association attended the meeting held at the end of last month.

During the consultations, officials and trade leaders evaluated the global economic outlook, domestic macroeconomic indicators, supply chain readiness, and market diversification strategies before recommending the export target, according to official documents.

According to the EPB, while the export sector has shown resilience, it continues to face persistent global headwinds. The economic ripple effects of the Russia-Ukraine war, escalating Middle East tensions involving Israel and Iran, soaring inflation, and the high cost of imported raw materials have squeezed exporters' profit margins.

The bureau also raised concerns that the country's graduation from Least Developed Country (LDC) status will gradually reduce access to preferential trade benefits.

When contacted, Commerce Secretary Md Ataur Rahman Khan said, "We have already held a meeting on the export target, which will be announced soon after finalising it for the current fiscal year. The EPB is currently working on the issue."

At the meeting, business leaders urged the government to introduce targeted policy support to help exporters meet the ambitious target.

They called for lower logistics costs, faster implementation of automated customs and trade facilitation systems such as the National Single Window, rationalisation of import duties on industrial raw materials, particularly for the furniture, plastics and leather sectors, and timely disbursement of cash incentives.

Furthermore, exporters stressed the need to accelerate negotiations on bilateral and regional trade agreements, including Free Trade Agreements (FTAs), Comprehensive Economic Partnership Agreements (CEPAs) and Economic Partnership Agreements (EPAs), with major markets such as the European Union, Japan and South Korea to safeguard market access post-LDC graduation.

The Ready-Made Garment (RMG) sector, which faced a slight negative growth curve recently due to weakened consumer purchasing power in Western markets, is expected to remain the primary engine of the country's export earnings.

According to official documents, the EPB has proposed an export target of $45.8 billion for the sector in FY27, including $24.11 billion from knitwear and $21.69 billion from woven garments.

The EPB has also set ambitious goals for other export-oriented manufacturing sectors.

Among other sectors, leather and leather goods have been assigned a target of $1.44 billion, including $810 million from leather footwear.

Agricultural products are expected to generate more than $1.17 billion, including $230 million from tobacco and $170 million from fruits.

Jute and jute goods exports have been targeted at $1.017 billion, with jute yarn and twine projected to contribute $620 million.

Home textiles are expected to earn $1.065 billion, engineering products $803.8 million, and pharmaceutical exports $290 million.

The EPB has set a $9 billion target for service exports in FY27.

Transportation services are expected to generate $1.65 billion, followed by other business services at $1.54 billion.

Computer and IT services have been assigned a target of $855 million, including $750 million from data processing and hosting services, while telecommunications services are projected to earn $935.82 million.

Officials said achieving the overall export target would depend on stronger performance across both the manufacturing and services sectors amid an increasingly challenging global trade environment.

Bangladesh's strategic pivot toward non-traditional markets has hit a major milestone as its year-on-year exports to Latin American nations are increasing significantly.

Rising imports by Brazil and Chile have helped Bangladesh make a strong foothold in the South American market, analysts say.

Merchandise shipments to Latin America, especially ready-made garment (RMG), saw a 29.15 per cent growth over the last four fiscal years, pushing Bangladesh one step ahead in diversifying its export market, according to the Export Promotion Bureau's (EPB) official data.

The robust growth underscores the expanding footprint of local manufacturers in the South American continent.

This surge comes at a critical juncture as the nation actively pursues aggressive market diversification strategies to mitigate geopolitical vulnerabilities in its conventional Western strongholds.

According to the EPB data, Bangladesh exported goods worth $367.82 million to the South American market in the fiscal year 2022-23, which grew to $475.04 million in FY26.

In FY24, Latin American countries imported Bangladeshi products worth $362.02 million, which rose to $442.06 million in the following year.

Some Bangladeshi garment makers say if MERCOSUR - the Southern common market trade bloc comprising Brazil, Argentina, Uruguay, and Paraguay - eliminates tariff barriers, exports would boost significantly.

Bangladeshi products face high tariffs of up to 35 per cent when entering MERCOSUR.

This rate is part of the bloc's Common External Tariff (CET).

The high duty applies to non-member countries and makes Bangladeshi goods like clothing more expensive to sell in South America.

Local businessmen say men and women suits, sweaters, shirts, T-shirts, jute and jute goods, and leather and leather goods are the major export items from Bangladesh to South America.

According to the EPB, Brazil is the leading importer of Bangladeshi products.

Bangladesh exported goods worth $109.2 million to Brazil in FY23, which increased to $147.58 million in FY2024.

In FY25, shipments maintained momentum and reached $187.34 million, which jumped further to $ 214.69 million in FY26.

Beyond Brazil, Bangladeshi goods are seeing a notable momentum in a trio of South American economies.

Benefiting from a long-standing zero-duty benefit arrangement enacted for developing nations, Chile has evolved into a vital partner.

In FY26, Bangladesh exported goods worth $169.64 million to Chile.

Major shipments to the market included knitted T-shirts, formal men suits, and women's apparel.

Steadily moving up the ranks, Uruguay has absorbed escalating volumes of knitwear, sweaters, and specialised woven items as it imported $39.28 million worth of goods in FY26.

This absorption helped solidify Bangladesh's position in the Southern Cone of the continent.

While the overall trade volume remained relatively modest at $34.93 million in FY26, Argentina recorded a dramatic, multi-fold percentage increase in its imports from Bangladesh over the mid-term. Demand was spearheaded by knit sweaters, activewear, raw jute products, etc.

Analysts say the 29.15 per cent upward trajectory in Latin American shipments indicates that local exporters are successfully penetrating new geographical frontiers.

Trade experts highlight that navigating South America's high tariff barriers remains an operational hurdle.

To lock in these hard-won gains, trade groups like the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) are advising the government to initiate formal Free Trade Agreement (FTA) negotiations with MERCOSUR.

Securing preferential access is deemed essential for preserving cost competitiveness following Bangladesh's official graduation from the Least Developed Country (LDC) status.

Deutsche Bank has paid an A$2 million ($1.3 million) penalty for misreporting more than 260,000 over-the-counter (OTC) derivative transactions, Australia's securities regulator said on Monday.

The Australian Securities and Investments Commission (ASIC) issued the infringement notice after finding that the German bank failed to accurately report the 'direction' field data across foreign exchange and commodities transactions between 21 October 2024 and 15 August 2025.

ASIC considers the direction data reporting failures were systemic and reflected deficiencies in Deutsche Bank's internal reporting framework.

Deutsche Bank has cooperated with the investigation and is implementing measures to prevent further reporting errors, the watchdog said.

Deutsche Bank declined a Reuters request for comment.

In a major regulatory crackdown, the stock market watchdog has initiated the process of cancelling the licences of six more merchant banks over allegations of prolonged inactivity and capital deficiency.
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The move was triggered by preliminary findings that some of the institutions had long failed to meet minimum capital requirements, while the others faced accusations of persistent regulatory non-compliance and prolonged operational inactivity.

The merchant banks facing licence cancellation are FAS Capital Management, Imperial Capital, NDB Capital, Riverstone Capital, HAL Capital and Roots Investment.

"Our preliminary investigation uncovered serious irregularities," said Md. Abul Kalam, executive director and spokesperson of the Bangladesh Securities and Exchange Commission (BSEC).Bangladesh Investment Guide

The commission has now ordered detailed, case-by-case investigations into the operational and financial conditions of the merchant banks before taking a final decision. The affected merchant banks will also be given an opportunity to explain their positions and defend themselves as part of the regulatory process.

Officials said investigators would examine why the firms had failed to restore their capital positions despite repeated regulatory warnings and whether there were any governance failures, negligence or violations of securities laws.

Under the Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Rules, 1996, a full-fledged merchant bank must maintain a minimum paid-up capital of Tk 250 million. In addition, its continuous net assets must not fall below 50 per cent of the paid-up capital to ensure financial soundness and investor protection.

The commission also ordered separate investigations into UniCap Investments and GSP Investments over their failure to maintain the required net capital. At the same time, BRAC EPL Investments has been asked to explain why its net capital fell below the regulatory threshold.

The Market Intelligence and Investigation Division has been directed to conduct comprehensive investigations into UniCap Investments and GSP Investments, focusing on the reasons behind their capital erosion, their overall financial health, compliance with securities laws and any governance lapses.

"If investigators find evidence of irregularities, negligence or violations of securities laws, legal action will be taken against those responsible," Mr Kalam said.

The latest move is one of the toughest enforcement actions against merchant banks in recent years, reflecting the new BSEC commission's determination to strengthen market discipline, improve governance and ensure that licensed intermediaries remain financially capable of protecting investors' interests.

Finance Minister Amir Khosru Mahmud Chowdhury on Monday said the International Monetary Fund (IMF) has acknowledged the government’s financial reform efforts and respected its political responsibility towards protecting public welfare as both sides discussed the framework for a new IMF-supported programme.
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Speaking to reporters after a meeting with IMF Mission Chief for Bangladesh and Hong Kong, Ivo Krznar, at the Finance Ministry, the minister said the discussions focused on the foundation, sequencing and overall policy direction of a future programme rather than detailed conditions.

“The basis on which the new IMF programme will be structured has been clarified, and the IMF has agreed with the proposed framework,” the finance minister said.

He said the reforms would be implemented gradually, taking into account Bangladesh’s economic realities and maintaining continuity in the ongoing reform agenda.

“Major changes cannot be introduced overnight. The IMF also agrees that reforms should be sequenced in line with the country’s economic situation and priorities,” he said.

Both sides agreed that reforms should be carried out step by step based on national priorities instead of following a rigid timeline, he said.

Amir Khosru also said the IMF has shown respect for the responsibilities of a democratically elected political government in safeguarding public welfare while pursuing economic reforms.

“The country’s economic decisions will be taken by protecting the interests of the people,” he said.

The finance minister said the IMF delegation expressed satisfaction over the progress made during the current government’s first four months, particularly in financial sector reforms, the development of the capital market and revenue collection.

He claimed that the IMF recognised the government’s tax collection performance during the four-month period as a significant achievement and held positive discussions on proposals to further raise Bangladesh’s tax-to-GDP ratio.

On the issue of subsidies, the minister said no detailed discussions has yet taken place regarding specific conditions or policy measures.

“We have only discussed the basic framework of the new programme. Detailed issues, including subsidies, will be taken up during subsequent negotiations,” he said.

Khosru said the negotiations would continue over the coming months, with the next round of discussions expected to take place on the sidelines of the World Bank-IMF Annual Meetings in September or October.

He expressed optimism that the government’s reform-oriented performance would provide a solid foundation for finalising a new IMF programme.

The Group of Least-Developed Countries has urged the international community to take urgent action on five priority areas-concessional finance, debt relief, climate finance, market access and technology transfer-to help the world's poorest nations achieve the Sustainable Development Goals (SDGs) and ensure smooth LDC graduation.
Presenting the LDC Group's priorities at the High-Level Segment of the UN Economic and Social Council (ECOSOC) General Debate in New York on Monday, Bangladesh Prime Minister's Finance and Planning Adviser, Dr Rashed Al Mahmud Titumir, warned that mounting debt burdens, climate shocks, shrinking fiscal space and declining development assistance are putting sustainable development at risk.

Speaking on behalf of the 44-member LDC Group, Dr Titumir said progress towards the 2030 Agenda for Sustainable Development remained "alarmingly off track", with LDCs facing the greatest challenges.

As the group's first priority, he calls for a significant increase in predictable, affordable concessional financing to address mounting debt vulnerabilities and boost investment in education, healthcare, productive capacity, resilient infrastructure, job creation, poverty reduction, social protection and essential services.

Second, he urges reforms to the international financial architecture to better reflect the structural vulnerabilities of LDCs through expanded access to concessional resources, debt-suspension mechanisms, sustainable debt solutions and more equitable financing arrangements.

Third, he stresses that climate finance must be predictable, accessible and commensurate with countries' vulnerabilities, while calling for greater support for adaptation, resilience-building, energy transition and the Loss and Damage Fund, alongside increased investment in clean energy and resilient infrastructure.

Fourth, the LDC Group calls on the international community to preserve and expand market access for LDC exports by reversing protectionist measures and ensuring transparent, simplified and development-friendly rules of origin.

Fifth, Dr Titumir underscores the need for stronger international cooperation to bridge digital and technological divides through enhanced technology transfer, capacity-building and digital transformation.

He reaffirms the group's commitment to implementing the 2030 Agenda and the Doha Programme of Action (DPoA), describing them as the key frameworks for advancing sustainable development and ensuring smooth graduation from LDC status.

The adviser has said persistent structural vulnerabilities, worsening climate change, widening digital divides and limited access to affordable finance continue to hamper development efforts across LDCs, threatening the DPoA's goal of enabling more countries to achieve sustainable and irreversible graduation by 2031. He notes that 14 LDCs are currently at different stages of the graduation process and continue to require sustained international support.

Bangladesh and Nepal, he mentions, have sought a three-year extension of their preparatory period for graduation until November 2029 due to unprecedented political, macroeconomic, environmental and external shocks.

Describing next year's Mid-Term Review of the Doha Programme of Action in Doha as a critical opportunity to accelerate implementation of global commitments, Dr Titumir urges heads of state and government, ministers, international financial institutions and development partners to ensure the meeting delivers "transformational and implementable outcomes".

"The LDC Group stands ready to work with all partners to ensure that the Mid-Term Review becomes a turning point, one that restores momentum, rebuilds trust and delivers on the promise of sustainable development, leaving no one behind."

The Dhaka Stock Exchange (DSE) has suspended trading in the shares of two listed companies— Daffodil Computers and Usmania Glass Sheet Factory—after detecting abnormal price and volume spikes.

In separate disclosures issued at 10:56am, the bourse said trading in both stocks would remain suspended for the rest of the trading session due to unusual increases in share prices and trading volumes.

According to the DSE, shares trading halt for Usmania Glass for second time as it had faced trading halt on 9 June, and resume on the next trading session.

Daffodil Computers' share price jumped 16% to Tk170.6 between 28 June and 9 July. The stock later fell to Tk160.8 on Sunday before rebounding to Tk163.8 on Monday prior to the trading suspension.

Meanwhile, Usmania Glass Sheet Factory's shares price surged abnormally in recent trading sessions, the DSE data showed. Its share price climbed from Tk37.3 on 22 June to Tk70.2 on 9 July.

After the earlier trading suspension, the stock slipped to Tk67.5 on 12 July but surged again yesterday to Tk74.2 each, making significant surge in a single trading session.

Due to this price surge, the premier bourse halted the company's trading.

Previously, DSE halted share trading Meghna PET Industries, Zeal Bangla Sugar Mills due to abnormal share price jumps.

Bourse officials told TBS that such trading halts are part of the exchange's efforts to curb market manipulation and protect investors from unusual price movements.

The government has set a target of converting at least 30% of vehicles used in Bangladesh's road transport sector into electric vehicles (EVs) by 2030 as part of its efforts to reduce carbon emissions and promote sustainable transport.

Road Transport and Bridges MInister Shaikh Rabiul Alam disclosed the plan in parliament today (13 July) while responding to an urgent public importance notice raised by ruling party lawmaker Shawkat Ara Akter from the reserved women's seat-33.

He said the government is implementing a range of policy measures to shift public transport to environmentally friendly fuels, reduce greenhouse gas emissions and build a sustainable transport system.

The minister noted that greenhouse gas emissions from vehicles, particularly carbon dioxide, are a major contributor to global warming, making the transition from fossil fuel-powered vehicles to EVs increasingly important.

Under Bangladesh's Nationally Determined Contributions (NDCs), the country has pledged to unconditionally reduce carbon dioxide emissions from the transport sector by 3.4 million tonnes by 2030. The 30% EV conversion target forms part of that commitment, he said.

To support the transition, the Road Transport and Highways Division has already formulated policies governing the registration and operation of electric vehicles.

The government has also approved duty-free imports of fully electric buses for educational institutions, while imports of such buses for other uses will be subject to a reduced 15% duty to encourage wider adoption.

Addressing demands raised by lawmakers, Robiul said bridge tolls are a revenue matter under the Finance Division, meaning the Ministry of Road Transport and Bridges cannot unilaterally waive tolls.

He added that toll concessions for smaller bridges could be considered through policy decisions in consultation with the Finance Division, but toll collection cannot be suspended solely based on requests or recommendations from individual lawmakers.

On calls to increase stoppages of intercity trains, the minister said existing policies are designed to preserve the fast-service nature of intercity rail.

Allowing trains to stop at every location would undermine their efficiency and defeat the purpose of rapid travel, he added.