Private entity Architecture Research and Development (ARD) has proposed establishing 6,000 micro-economic zones across Bangladesh to boost local production, entrepreneurship and employment while strengthening food security and climate resilience.

The organisation plans to implement the initiative through a public-private partnership (PPP) with government support.

Architect Shamsunnahar Munni outlined the proposal at a press conference at the Sagar-Runi Auditorium of Dhaka Reporters Unity (DRU) on Sunday.

She said the proposed zones would not be merely projects but comprehensive local economic ecosystems designed to meet people's needs through local production as much as possible.

"This will reduce import dependence, strengthen local economies and create employment opportunities," she said.

Ms Munni said growing uncertainties in global supply chains, imports and exports, transportation, energy and international markets had made it increasingly important to strengthen Bangladesh's capacity to produce and consume essential goods locally.

"We will work locally and globally. If local problems can be addressed locally, many of the country's major problems can be solved," she said.

Asked about financing and implementation, she said the organisation wanted to undertake the initiative through a PPP arrangement with the government.

Responding to a question about whether discussions had already been held with any government agency, she said they had learnt at a seminar that Bangladesh Bank has some green funds and suggested that the government could consider financing the initiative from such funds.

Under the proposed model, local people would participate not only as consumers but also as producers. A farmer's products could be used by another entrepreneur, while products made by other entrepreneurs could be consumed by farmers and local residents, creating an interdependent local economic system, she said.

The initiative also seeks to recreate elements of the traditional village-based exchange economy by connecting local producers, artisans, farmers, packaging entrepreneurs and traders. "We do not want to become like any other country. We want to move forward in our own way, based on our own capabilities," Ms Munni said.

According to the organisation, each of the proposed 6,000 zones would include cold storage, airflow storage, agro-processing centres, dryer units and food-processing facilities.

The zones would also have environment-friendly housing, workspaces for entrepreneurs, production facilities, training and incubation centres, storage, packaging, branding and marketing facilities.

Small-scale renewable energy systems, including windmills and mini-hydropower facilities, would also be developed in the zones to support low-carbon and climate-resilient infrastructure, she said.

Ms Munni said if 100 entrepreneurs joined each zone, around 600,000 entrepreneurs could become directly involved across the 6,000 zones. They would purchase ownership shares in the zones, while the number of entrepreneurs could be increased further.

A preliminary survey found the potential for an average of around 270 entrepreneurs in different areas, she said.

She added that field surveys had already been conducted in different unions and localities, and information had been collected on the livelihoods and living conditions of marginalised people. The concept of the master plan was developed based on those field-level observations, she said.

Calling herself an "architect of the poor", Ms Munni said ARD had so far worked on building homes for more than 5,000 poor families.

"Drawing on this experience, we have thought of bringing the housing, employment and livelihood needs of marginalised people under a single framework," she said.

Interest rates on treasury bills have declined by 21-25 basis points as banks are flush with excess liquidity while demand for private-sector credit remains weak.

According to Bangladesh Bank data, the yield on 91-day treasury bills fell below 9% to 8.93% yesterday (16 August), down from 9.19% a week earlier.

The yield on 182-day treasury bills declined to 9.07% from 9.32%, while the rate on 364-day bills fell to 9.13% from 9.33% over the same period.

Bankers attributed the decline mainly to excess liquidity in the banking system and weak demand for loans from the private sector.

The central bank data show that banks' surplus funds rose to Tk4,08,000 crore in June from Tk3,27,877 crore in May, an increase of Tk80,123 crore. The amount stood at Tk3,77,235 crore in April and Tk3,78,134 crore in March.

Bankers said deposit growth has improved as banks have offered relatively high interest rates to attract funds. By May, deposits at leading banks had grown by around 11.5% over the previous year.

As deposits continue to grow while credit demand remains subdued, banks are looking for safe investment avenues for their excess funds. Treasury bills have emerged as an attractive option for short-term investments, offering yields of around 9% with relatively low risk.

Several leading banks that accumulated substantial deposits in recent months have increased their investment in treasury bills, putting downward pressure on yields.

With deposit growth strengthening, many leading banks have also reduced deposit rates by 50-100 basis points since August.

Investment in treasury bills and bonds totalled Tk7,95,359 crore in FY26, up from Tk6,93,725 crore in the previous fiscal year.

Banks, insurance companies and other financial institutions are the major investors in government securities. Commercial banks, in particular, have increased their holdings as private-sector credit growth has slowed.

Bangladesh Bank removed the 9% lending rate cap on 1 July 2023 and introduced a market-based interest rate regime linked to the SMART system. Treasury bill and bond yields subsequently increased.

Yields crossed 12% at times during FY25, when deposit rates at different banks ranged between 9% and 11%.

Bankers said individual investors also showed unusually strong interest in treasury bills and bonds during that period, as the securities offered relatively high returns compared with other investment options.

Prime Minister Tarique Rahman is set to meet officials of the National Board of Revenue tomorrow, for the first time during his tenure, in a bid to learn about the revenue authority's field-level operations and processes, according to officials.

NBR sources also said the prime minister is likely to ask about the NBR's strategy for achieving the Tk6.04 lakh crore revenue collection target for the fiscal 2026-27, which is more than 45% higher than that of the previous fiscal year.

Experts said the prime minister's meeting, named "Revenue Conference", would help reduce the dissatisfaction and lack of trust among officials created by their movement over the NBR bifurcation issue and the subsequent punishment, forced retirement and transfers of a large number of officials.

Officials said such a meeting between the prime minister and NBR officials is rare. Earlier in 2023, the then prime minister had attended a similar revenue conference while inaugurating the current NBR building in Agargaon, Dhaka.

NBR Member Syed Mushfequr Rahman told The Business Standard that they are preparing a presentation on strategies for achieving the revenue collection target for the new fiscal year, which will be presented to the prime minister.

He said, "The prime minister wants to know how our various activities are carried out. These include the customs clearance process, how VAT registration and payment are made, the process of obtaining an online TIN and filing returns, and how payments are made, among others."

Another official said, "We have also learned that he will ask the NBR about the progress of its automation and ways to eliminate existing irregularities and inefficiencies."

"We are preparing the presentations," he added.

Dr Syed Md Aminul Karim, a former NBR member of Income Tax Wing, who worked at the revenue authority for nearly 30 years, told TBS, "If the prime minister meets the officials and listens to them, it will create hope among them and provide an opportunity to overcome the division, fear and mistrust that had developed among them," he said.

He said, "Ultimately, this will also be positive for revenue collection," adding, "In the past, revenue collection grew by an average of 12% to 13% annually. But this year, the target is to increase revenue collection by more than 45%. The prime minister is meeting NBR officials as part of an out-of-the-box approach to achieving this target."

German companies slashed investments in the United States to a three-year low in the first half of 2026, as Trump administration policies fed uncertainty between the transatlantic trading partners.

First-half direct investments plunged by nearly two-thirds year-on-year to €4.3 billion ($5 billion), the lowest level since 2023, according to calculations by the German Economic Institute, or IW, seen by Reuters.

Compared with the same period in 2024, that ⁠represents a drop of nearly 80%, said the report, which is based on data from Germany's central bank.

"This continues the downward trend that has been evident since the start of Donald Trump's second term in January 2025," IW researcher Samina Sultan told Reuters.

Since returning to office, Trump has threatened most of the United States' international trading partners with import tariffs in an attempt to secure concessions favourable to Washington.

In a bid to avoid heavy duties on its exports to the US, for example, the European Union agreed a deal last year ⁠that included a $600 billion investment pledge.

In the five years before the COVID-19 pandemic, first-half investments by German companies in the US averaged €15.8 billion, the data showed, almost four times the 2026 level.

That said, the 2020 to 2023 period was shaped by the "exceptional circumstance" of the pandemic, Sultan said, ⁠with some years marked by net investment outflows.

The researchers also examined the composition of investment flows over 2025 and found that both direct-investment loans and reinvested earnings were exceptionally high, while equity capital in ⁠the narrower sense–the balance of new investments and liquidations–remained below average.

"Companies that are already active in the United States are therefore continuing to reinvest the profits ⁠they earn there in the country," Sultan said. "This suggests that the US remains an attractive market overall."

However, companies were hesitant to commit new capital, she said.

Morgan Stanley Capital International (MSCI) will end its more than three-year special treatment of Bangladesh's capital market in the November 2026 Index Review, paving the way for the resumption of normal index reviews and corporate-event implementation for Bangladeshi securities.

The global index provider announced on August 5 that it would no longer apply the special treatment to the MSCI Bangladesh Indexes from the November review. The special treatment dates back to February 2023, when MSCI froze index changes after Bangladesh's floor-price mechanism restricted natural price discovery and impaired market accessibility for foreign institutional investors.

The situation changed after the Bangladesh Securities and Exchange Commission removed the floor prices from the remaining affected securities, Beximco and Islami Bank Bangladesh, on June 9 this year. MSCI subsequently welcomed the removal, saying floor prices had severely hindered market accessibility and distorted price discovery.

The latest development effectively brings an end to a prolonged freeze on normal MSCI treatment of Bangladesh.

MSCI said it will implement in November all index-review changes that had been postponed under the special treatment. These include changes in the Number of Shares (NOS) and Foreign Inclusion Factors (FIF) for securities classified in Bangladesh.

Regular implementation of corporate events will resume on December 1.

The announcement means Bangladesh will remain under the special arrangement for the upcoming August review, but normalisation will begin with the November review.

However, MSCI has also left Bangladesh with a clear warning. It said any reintroduction of floor prices on listed securities could trigger a consultation on potentially reclassifying Bangladesh from Frontier Market to Standalone Market status.

The Bangladesh Securities and Exchange Commission (BSEC) has resolved a technical bottleneck that had been hampering foreign-owned banks serving as custodians for mutual funds.

However, the regulator has now allowed local management committees at these banks to authorise signatories for mutual fund bank and securities accounts, addressing a structural mismatch between BSEC rules and how multinational banks are organised.

Under the BSEC (Mutual Fund) Rules, 2025, signatories for mutual fund accounts were required to be nominated by the custodian's board of directors. But many foreign-owned banks operating in Bangladesh do not maintain a local board, given their global corporate structures.

Instead, their Bangladesh operations are typically overseen by a "Management Committee" or designated "Nominated Persons," who function as the highest local decision-making authority in the absence of a board.

The BSEC's move brings the rule in line with this reality, clearing the way for these banks to continue operating as custodians without the earlier procedural hurdle.

Recognizing this practical difficulty, the regulator issued a directive today (13 August) to ensure the smooth implementation of the 2025 Rules while safeguarding investor interests. The directive comes into force immediately.

The BSEC stated that for foreign-owned banks, the management committee or designated authorities will now be legally empowered to act on behalf of a board of directors to nominate signatories.

Market insiders noted that this move provides much-needed regulatory clarity for international banks—such as Standard Chartered and HSBC, which play a significant role as custodians in the country's capital market.

By aligning the law with the operational reality of multinational banks, the BSEC aims to ensure that mutual fund operations remain uninterrupted and compliant with the updated regulatory framework.

The country's premier bourse managed to eke out a modest gain last week, supported by optimism over potential regulatory shifts, though persistent energy shortages and global geopolitical tensions kept investor participation in check.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) climbed 23 points to settle at 5,884 by the week's close. However, cautious sentiment prevailed among participants, leading to a 15.6% drop in average daily turnover, which settled at Tk990 crore.

According to weekly reviews by Sheltech Brokerage and EBL Securities, the market pulse was primarily shaped by expectations surrounding more flexible margin financing regulations. While the week opened under selling pressure, a mid-week rally – driven by reports of imminent amendments to margin lending rules – briefly pushed the DSEX back above the 5,900-point threshold.

However, the momentum failed to sustain until the final session. Investors opted to lock in profits toward the end of the week, spooked by the ongoing industrial gas supply crisis and the lack of a formal notification regarding the proposed regulatory changes.

On the sectoral front, trading activity was concentrated in Textiles (22.1%), followed by General Insurance (18.3%) and Pharmaceuticals (8.5%).

In terms of returns, the Jute, Services, and Textile sectors emerged as the top gainers. Conversely, the Mutual Fund, Life Insurance, and Telecommunications sectors faced the sharpest corrections as investors rebalanced their portfolios.

For developing countries like Bangladesh, the key to economic success is not simply how quickly they adopt new technologies or attract investment. The deeper challenge is building strong institutions that create certainty, enforce contracts and support productive economic activity, said Professor Jean-Louis Arcand, president of the Global Development Network (GDN).

“Institutions are the single most important determinant of which countries get rich and which countries stay poor,” he said.

In an interview with The Daily Star recently, he said, “Without strong economic and political institutions, even countries rich in natural resources can remain poor, while countries with fewer resources can prosper.”

Jean-Louis said developing countries need to pay particular attention to institutions, the rule of law and how their economies function.

He also discussed the potential impact of artificial intelligence (AI), digital public infrastructure, linguistic sovereignty and investment in girls’ education.
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Jean-Louis is a Canadian economist born in Cameroon. He grew up in different parts of the world and earned his PhD from MIT in the United States. The GDN was initially created within the World Bank under Nobel laureate economist Joseph Stiglitz to strengthen research capacity in developing countries.

Jean-Louis said its core principle is that researchers from the Global South should identify local problems and formulate policies, rather than relying on consultants from Western countries.

Over 25 years, the GDN has supported more than $1 million in research by Bangladeshi researchers and is exploring Bangladesh’s membership.

He said the GDN is also studying whether digital public infrastructure, including digital IDs and mobile money, reaches marginalised groups. It is researching open transaction networks, inspired by India’s Open Network for Digital Commerce, and their potential in Bangladesh.

AI WILL ONLY REDIRECT LABOUR

On AI, Jean-Louis said that there is currently “a lot of hype” surrounding the technology. He said the GDN is studying how AI will affect labour markets.

Rather than simply asking whether AI will replace workers, researchers should examine which tasks AI can perform better than humans, he said.

He explained this using what economists call an “O-ring” production function. If a product depends on several tasks and one task fails, the entire product can lose its value. AI is therefore more likely to be adopted for tasks where the probability of human failure is high.

According to Jean-Louis, AI can substitute for workers in some high-risk tasks while increasing demand for workers performing other tasks.

“What AI does is it doesn’t so much eliminate labour; it redirects it to other tasks,” he said.

He said this could happen in sectors ranging from manufacturing to medicine.

In medical diagnosis, for example, AI can assist radiologists in identifying problems in X-rays. In other tasks where humans perform well, there may be less reason for companies to adopt expensive AI systems.

Jean-Louis said research suggests AI adoption could increase output by around 0.5 percent of GDP every year as firms adopt the technology. His simulations also suggest that poor countries could gain slightly more than rich countries from AI adoption.

“It won’t be a huge narrowing of the gap between poor countries and rich countries,” he said, but AI could still narrow the gap slightly.

The major constraint, however, is the cost of AI.

Jean-Louis said AI adoption remains very low in poor countries because the technology is still expensive. He said Chinese open-source models could change this by reducing the cost of adoption.

BUILD LOCAL AI CAPACITY

For Bangladesh, he said the economics of adoption will be particularly important. If an AI system costs much more than the labour it replaces, companies have little incentive to adopt it.

“I suspect that the cost of AI relative to the benefit is still very high in Bangladesh,” he said.

Jean-Louis also raised concerns about linguistic sovereignty.

He pointed out that there are very few large language models available in Bengali, with similarly limited resources for many other languages in the Global South.

“The linguistic sovereignty issue is actually very important for the Global South,” he said.

Developing countries, he argued, should not become so dependent on foreign AI models that access could eventually be restricted. He said there are economic reasons for countries in the Global South to develop their own large language models.

For Bangladesh, Jean-Louis said the country has enough talent and scale to develop its own models.

EDUCATING GIRLS A SMART INVESTMENT

The economist also highlighted another policy priority: educating girls.

The single most important determinant of development may be institutions, but when it comes to government investment, he said educating young girls can be one of the smartest investments a country can make.

Meanwhile, he said technology alone cannot solve development problems.

Jean-Louis said he has spent increasing amounts of time with technologists and found that many of them underestimate the importance of society, incentives and human behaviour.

“You could have the best technological solution for a problem. It will never get implemented if society and incentives are not taken into account,” he said.

Technology, he argued, is only the supply side. Understanding how people respond to it is equally important.

“The technology is supply, but then the demand has to do with human reactions,” he said.

Not long ago, the finance team in a company would have spent the week buried in paper, chasing invoices and posting entries by hand. Today the accountant opens one screen, and the numbers are already there, reconciled overnight. Instead of finishing the month-end close, the accountant is with the managing director, explaining what the figures mean.

This is one of the biggest changes in the history of the profession, and it is not only about technology. It is also about new business models, higher expectations, stronger ethics, and new skills, driven by digital systems, automation, artificial intelligence, data, sustainability and ESG reporting, evolving standards, globalisation and tax reform, tools such as blockchain, and, above all, people with the right knowledge. Start with the digital shift. Paper ledgers and manual journals are quietly disappearing. Transactions flow into cloud-based systems where the general ledger updates in real time, and a month-end close that once took two weeks can be done in hours. The role of the accountant shifts from recording to explaining. This makes the profession more valuable to business.

Close behind sits automation. Rule-based software now handles repetitive work that once filled the day: matching invoices to purchase orders, posting journal entries, running bank reconciliations, and processing payables. This frees skilled people from data entry for judgment, analysis, and advice. Artificial intelligence pushes this further, working through huge volumes of data in seconds. It can draft financial statements, forecast cash flow, and support audits by testing the full population of transactions rather than a sample, strengthening assurance. But AI is still a tool, not a replacement. It does not understand the culture of a company and cannot exercise professional judgment. The real story is humans working with machines.

That partnership matters most with data. Every business now produces more information than it can use, and the hard part is no longer gathering it but making sense of it, where management and cost accounting come into their own. Variance analysis and reliable forecasting turn a scorekeeper into a strategist. Investors, regulators, and the public now want to know not just how much a company earns, but how responsibly. Reporting on emissions, energy use, waste, staff wellbeing, diversity, and governance is becoming as important as the income statement. For Bangladesh, where exporters answer to global buyers, this is already a commercial reality.

Globalisation adds another layer. As local firms trade and raise capital across borders, they meet transfer pricing rules, multiple tax regimes, and the global minimum tax on multinationals. Tax administration is going digital too, with e-invoicing and real-time VAT reporting reshaping compliance. Accountants who understand both local rules and international practice will be in high demand. Running through all of it are trust and good governance. As money and records move online, so do the dangers, from cyber-attacks to digital fraud. Strong internal controls and protection of confidential information are now core duties, not afterthoughts. Ethics will stay at the heart of everything: financial information shapes the choices of lenders, employees, and the public. AI can calculate, but it cannot supply honesty or a sense of the public interest. As tools become more powerful, ethical leadership matters more, not less.

The accountant of tomorrow will not simply ask what happened last year. He or she will answer what is happening now and what the business should do next, as adviser, risk manager, and partner. For young people entering the profession, this is a real opportunity: not to race against AI, but to use it wisely while building the human qualities no machine can copy.

The writer is an economic analyst

Spectrum should be treated as a strategic national asset rather than a short-term revenue source, said Rehan Asad, the prime minister’s adviser on telecom and ICT, urging mobile operators and policymakers to focus on expanding connectivity and digital inclusion.

He was speaking at the “Spectrum for a Connected Bangladesh: Enabling Internet for All” event organised by the Telecom and Technology Reporters Network Bangladesh (TRNB) at Holiday Inn in Dhaka yesterday.

Speakers at the event called for a shift in Bangladesh’s approach to spectrum, arguing that pricing and allocation should prioritise affordable connectivity, network investment and digital inclusion rather than government revenue.

Bangladesh currently has 406 MHz of spectrum assigned to four mobile operators, while 79.4 MHz is due for renewal in November 2026, Rehan said.

He stressed that the telecom sector would remain vital over the next two to three decades as artificial intelligence transforms the economy, pointing to major opportunities in data centres, cloud computing and AI.

Bangladesh’s peak internet traffic, currently around 12.1 Tbps, could rise to about 30 Tbps by 2030, he said, adding that the government was working towards building capacity of at least 50 Tbps.

Bangladesh could potentially emerge as a regional data and AI hub if it develops reliable submarine cable connectivity, power supply and other infrastructure, he said.

“If we create the right ecosystem, lower the barriers to entry, enable seamless technology convergence, and treat connectivity as a strategic national asset rather than a short-term revenue source, there is no stopping Bangladesh,” Rehan said.

Bangladesh should remain open to technology convergence, he said, including satellite-mobile connectivity, where new technologies can benefit consumers.

Rehan highlighted the need to bring millions of people still using 2G feature phones into the digital economy. Local manufacturers have shown that affordable smartphones can be produced for Tk 5,000 to Tk 6,000, compared with around Tk 10,000 for the cheapest smartphones currently available, he said.

He urged operators to consider co-branding and bundling such devices with voice and data services to make smartphones and connectivity more affordable.

Robi Axiata CEO and Association of Mobile Telecom Operators of Bangladesh (AMTOB) President Ziad Shatara echoed Rehan, saying the value of spectrum should not be measured solely by the revenue it generates for the government.

“Excessive spectrum pricing can force operators to spend significant capital on spectrum fees instead of network investment,” he said, warning that this could ultimately affect service quality and consumers’ access to digital services.

“Affordable spectrum is not only about benefiting operators. Its primary purpose is to ensure better connectivity, create greater investment opportunities and build a stronger foundation for sustainable growth of Bangladesh’s digital economy,” Ziad added.

Banglalink CEO Johan Buse also called for affordable allocation.

“Affordable spectrum allocation will improve service quality, contribute to the country’s development and increase investment in the sector,” he said.

BTRC Chairman Major General Md Emdad Ul Bari (retd) said the regulator was aiming to strike a balance between customer service, operators’ business viability and economic growth.

“We need to find a ‘sweet point’ in spectrum pricing,” he said, stressing that telecom policy and spectrum prices should be based on scientific research rather than assumptions.

Grameenphone CEO Yasir Azman said spectrum renewal must be considered in the context of the industry’s changing business environment.

“Our industry structure and realities have fundamentally changed,” he said, noting that voice-call minutes had declined by 25 percent while average revenue per user remained unchanged.

He said operators’ contributions to the national exchequer had increased over the past five years, while returns on investment had declined.

Bangladesh has barely used its three trade remedy tools -- anti-dumping, countervailing duty and safeguard measures -- against unfair imports even as it remains a frequent target of such measures abroad, a Bangladesh Foreign Trade Institute (BFTI) study has found.

The findings come as India’s Directorate General of Trade Remedies (DGTR) carries out an anti-dumping investigation into polyethylene terephthalate (PET) films exported from Bangladesh, China and Thailand, and has asked interested parties to take part in an oral hearing.

Producers not individually listed in the review findings face a residual duty of $445 per tonne on yarn and twine and $283 per tonne on sacking bags.

The neighbouring country has also completed a mid-term review of anti-dumping duties (ADD) on jute goods from Bangladesh and Nepal.

In final findings dated June 25, the Indian authority recommended a revised, producer-specific duty structure to replace the existing rates, which range from zero to $351.72 per tonne and have been in place since a December 2022 reimposition.

Under the new structure, most named Bangladeshi producers would face duties of $69 per tonne on jute yarn and twine and $120 per tonne on sacking bags.

Producers not individually listed would face a residual duty of $445 per tonne on yarn and twine and $283 per tonne on sacking bags.

The recommended rates will take effect once implemented through a Customs Notification from India’s Ministry of Finance.

According to the BFTI study, four other Bangladeshi export products currently face anti-dumping duties abroad, each imposed by a different country.

Pakistan applies duties of 12.14 percent on hydrogen peroxide from most Bangladeshi exporters, with lower individual rates for named companies, following a review completed in October 2021.

Turkey applies a duty of $0.80 per kilogramme on man-made synthetic and artificial staple fibre yarn, after an investigation found circumvention of existing measures, with an exemption for one Bangladeshi company.

Argentina applies a 42 percent duty on gloves made of 100 percent knitted textile materials, imposed in February 2021. Brazil applies a duty of $0.16 per kilogram on jute sacks and bags, a measure in place since 1992 and last reviewed in September 2021.

Since 1992, Bangladeshi exporters have faced nearly a dozen anti-dumping investigations by the above-mentioned importing countries, the BFTI study mentions.

The study, conducted for the Bangladesh Trade and Tariff Commission (BTTC), said Bangladesh is at a critical juncture as it prepares to graduate from least developed country status this November. After graduation, the country will lose duty-free and preferential market access and other trade support measures extended to LDCs.

“This transition will expand market access opportunities but simultaneously erode policy space for traditional protective measures such as regulatory duties, supplementary duties, and minimum tariff values,” the BFTI paper said.

In this changing landscape, WTO-compliant trade remedy mechanisms, including anti-dumping, countervailing duties and safeguard measures, will become essential both to shield domestic industries from unfair trade practices and to support Bangladeshi exporters facing investigations abroad, the paper said.

The LDC graduation is expected to expose local industries to intensified competition, including dumping, subsidised imports and sudden import surges, the BFTI warned.

A BTTC official, seeking anonymity, said import tariffs will decline as Bangladesh meets obligations under bilateral and multilateral trade agreements.

Harunur Rashid Shams, research fellow at the BFTI, told The Daily Star their research shows Bangladesh’s current tariff regime needs a gradual shift away from broad para-tariff protection toward a more transparent, evidence-based and WTO-compliant trade remedy system.

Para-tariffs are fees or taxes, other than customs duties, charged at the border on imported goods.

“As Bangladesh prepares for LDC graduation, strengthening anti-dumping, countervailing and safeguard mechanisms will be critical to protecting domestic industries without undermining international trade commitments,” he said.

The paper also said strengthening trade remedy mechanisms is important to support Bangladeshi exporters facing investigations abroad.

Shams said enhancing the BTTC’s analytical capacity with specialised economists, cost analysts, trade lawyers and a modern trade surveillance system is vital for Bangladesh to identify unfair trade practices and respond with internationally accepted policy tools.”Our findings also recommend creating secure mechanisms through which trusted industry associations can access product-specific import data. Better data will improve transparency, strengthen evidence-based analysis and support more credible trade remedy investigations,” he said.

Bangladesh’s garment exports to the European Union (EU) fell by 16.43 percent year-on-year to €8.64 billion in the January-June period of 2026, according to data from Eurostat, the statistical office of the European Union.In the six months, the volume fell 8.22 percent year-on-year and prices decreased 8.94 percent.

However, the volume of goods shipped to the EU from Bangladesh in June alone rose 6.53 percent compared with the same month of the previous year, but in value terms, it experienced a fall of 5.31 percent, according to Eurostat data.

Also, the EU's apparel imports from the world fell 9.7 percent year-on-year in the first half of 2026 to €41.1 billion, while both the amount imported fell 6.4 percent and the average price decreased 3.53 percent.

In the same period, exports from Vietnam to the EU grew 0.36 percent to €2.06 billion. Interestingly, Vietnam shipped 11.52 percent less goods but raised prices by 13.43 percent.

Meanwhile, shipments from China, Turkey, India, Pakistan, Sri Lanka and Cambodia to the EU fell.

Bangladesh's apparel exports to the European Union fell 16.43% year-on-year to €8.64 billion in the first half of 2026, amid a broader contraction in the bloc's apparel import market.

The decline was driven by an 8.22% drop in shipment volumes and an 8.94% fall in average export prices during January-June, according to Eurostat data compiled by Bangladesh Apparel Voice (BAV) founder and Chief Executive Officer Mohiuddin Rubel.

The performance improved slightly in June, when Bangladesh's apparel exports to the EU rose 0.87% year-on-year to €1.37 billion. Shipment volumes increased 6.53% that month, partly offsetting a 5.31% decline in average prices.

Overall, the EU imported €41.10 billion worth of apparel from global suppliers in H1 2026, down 9.70% from a year earlier.

The decline reflected weaker consumer demand and lower prices across the bloc. Import volumes fell 6.40%, while average unit prices declined 3.53%.

Most major apparel-exporting countries also recorded sharp declines in the EU market.

Turkey's exports fell 14.60%, followed by Pakistan at 12.53%, India at 12.49%, Sri Lanka at 11.21%, China at 8.88% and Cambodia at 8.84%.

Vietnam was the only major supplier to post positive export growth, with shipments to the EU rising 0.36% in H1 2026.

Vietnam's export volumes fell 11.52%, but a 13.43% increase in average unit prices helped offset the decline in shipments. The price increase was the highest among the major suppliers during the period.

Indonesia and Cambodia also increased their average unit prices, but sharp declines in shipment volumes prevented them from achieving overall export growth.

The figures indicate that Bangladesh's export decline was deeper than the overall contraction in the EU apparel market, with both shipment volumes and prices falling significantly during the first six months of the year.

The board of directors of City Bank PLC has proposed increasing the bank's authorised capital by 50% to Tk3,000 crore, creating room to strengthen its paid-up capital amid new Bangladesh Bank dividend requirements.

The decision was taken at a board meeting last Thursday, according to a price-sensitive disclosure.

The proposal would raise the authorised capital from Tk2,000 crore to Tk3,000 crore, divided into 300 crore ordinary shares with a face value of Tk10 each. It requires shareholder approval at an Extraordinary General Meeting (EGM) and subsequent regulatory clearance.

The bank has scheduled the EGM for 4 October 2026 at 3pm through a digital platform. The record date for determining shareholders eligible to vote has been set for 6 September.

Preparing for BB's dividend rules

The move comes as City Bank prepares to meet Bangladesh Bank's new capital requirements. In a circular issued on 23 May, the central bank said commercial banks with paid-up capital below Tk2,000 crore will be barred from declaring cash dividends from 31 December 2026.

City Bank's current paid-up capital is Tk1,749.40 crore, leaving a Tk250 crore gap to the required threshold. The bank paid a 15% cash dividend and a 15% stock dividend for 2025.

By increasing its authorised capital, the bank will create the legal headroom to issue additional bonus or rights shares in the coming years and raise its paid-up capital above the regulatory threshold.

Bangladesh Bank's policy is aimed at strengthening banks' overall capital base. It also limits even well-capitalised banks to paying a maximum of 50% of their declared dividends in cash.

Board expansion proposed

City Bank has also proposed increasing the maximum number of non-independent directors from eight to ten. Shareholder approval will be sought to amend the relevant provisions of the bank's Memorandum and Articles of Association.

The board currently has seven shareholder directors. Partex Group holds three seats, while Anwar Group and Aziz Group hold one each. The board also includes an individual businessman and a nominee of the International Finance Corporation (IFC), the private-sector arm of the World Bank Group.

Bank insiders said the proposed expansion could allow broader representation of the bank's diverse shareholder base or bring in new strategic professionals.

Strong financial performance

The proposals come amid strong growth in City Bank's earnings. Its consolidated profit rose from Tk478 crore in 2022 to a record Tk1,324 crore in 2025. The bank posted Tk527 crore in consolidated profit in the first half of 2026.

City Bank shares closed at Tk31.20 on the Dhaka Stock Exchange on Thursday, giving the lender a market capitalisation of Tk5,458 crore.

Analysts said the bank's proactive capital management could support long-term dividend sustainability and strengthen its institutional position.

The Chittagong Stock Exchange (CSE) is fully prepared to launch a commodity exchange, with preparations across the market ecosystem in their final stage, the bourse’s Managing Director M Shaifur Rahman Mazumdar said yesterday.

A standard commodity exchange will help manage price volatility and could make a significant contribution to Gross Domestic Product, he said in a keynote paper at a seminar on commodity exchange operations, held at the MS Trade Centre in Khatunganj, Chattogram.

The CSE, in collaboration with the Khatunganj Trade and Industries Association, organised the seminar, according to a press release.

Shaifur stated that neighbouring countries, including India, Pakistan and Myanmar, already have commodity exchanges.

“An effective commodity market is an essential part of Bangladesh’s financial system. It will create new investment opportunities and add a new dimension to the country’s existing financial market,” he said.

The CSE MD said he hoped the Khatunganj Trade and Industries Association, along with its member businesses and institutions, would make the necessary preparations to participate in the new platform and contribute to the economy by joining the upcoming commodity market.

Mohammad Abdus Salam, president of the Khatunganj Trade and Industries Association, said the need for an effective commodity market in Bangladesh is undeniable.

“We hope that a commodity market will significantly reduce many of the risks currently present in the spot market,” he said, adding that the association is interested in working with the CSE on this front.

Collective efforts could help make the new market a reality and turn it into a suitable investment avenue in Bangladesh, he added.

CSE Director Emdadul Islam said commodity markets around the world see significant trading volumes, and that both the capital market and the broader economy would benefit once a commodity market starts operating in Bangladesh.

The CSE has been working for the past three years to establish a commodity exchange. The necessary laws and regulations have been formulated, and the trading platform is ready.

Preparations for market participants are now underway. Islam said the remaining work can be completed quickly with government and regulatory support, allowing the exchange to begin operations soon.

The United States urged the European Union on Friday to ease its laws putting responsibility on large firms for the environmental and social impact of their global supply chains, arguing the bloc had pledged such measures would not hamper EU-US trade.

US Ambassador to the EU Andrew Puzder said in a post on X that the 27-nation bloc should honour commitments made during trade talks with President Donald Trump in Turnberry, Scotland, in July 2025 to address so-called non-tariff barriers."Now it's time for the EU to deliver. Under the Framework Agreement, the EU committed 'to ensure' that its Corporate Sustainability Due Diligence Directive and Corporate Sustainability Reporting Directive 'do not pose undue restrictions on transatlantic trade'," Puzder wrote."Extraterritorial provisions harm American businesses and workers, but it is not just the US that will suffer."

A European Commission spokesperson said the EU and US were continuing to work on tariff and non-tariff issues.

The EU has explained its rules related to non-tariff issues, and emphasised its willingness to cooperate with the US to increase trade where possible, the spokesperson said.

"We have been very clear and consistent on the fact that neither our rules framework nor our regulatory autonomy are up for negotiation," they added.

Washington is also pushing the EU to amend its Carbon Border Adjustment Mechanism (CBAM), which imposes charges on imports of goods produced without meeting the bloc's carbon emissions standards.

The renewed pressure comes as US and EU officials turn their attention to non-tariff barriers after tariff commitments agreed in July 2025 took effect.

Three sources familiar with the discussions said they expected joint statements in the autumn covering the non-tariff elements of the Turnberry agreement.

Brussels has already softened some of the policies criticised by Washington over the past year, including its anti-deforestation law and methane emissions rules.

Several sources familiar with the EU position said the bloc was not planning further concessions on those measures.

SUSTAINABILITY RULES

The EU also scaled back its corporate sustainability rules, known as CSRD and CSDDD, last year after pushback from businesses and governments including the US and Qatar.

Changes agreed in December limited the scope of the Corporate Sustainability Due Diligence Directive (CSDDD) to the largest companies and delayed the compliance deadline by two years to mid-2029.

The Corporate Sustainability Reporting Directive (CSRD), which requires companies to report environmental and social impacts, will now apply only to firms with more than 1,000 employees, compared with the original threshold of more than 250 employees.

US companies including ExxonMobil had sought broader changes, including an exemption for foreign firms entirely.

"While the United States acknowledges some positive reforms in the December 2025 Sustainability Omnibus, those reforms failed to fully address US concerns regarding these directives," a statement accompanying Puzder's post said.

Dhaka Bank PLC has decided to raise Tk300 crore through the issuance of a contingent-convertible perpetual bond to strengthen its capital base and ensure compliance with international Basel-III standards.

The decision was finalised during the bank's board meeting held on Thursday, according to a price-sensitive disclosure.

The bank said the fresh capital will be categorised as Additional Tier-1 capital. This strategic move is aimed at addressing a marginal shortfall in the bank's core capital.

According to its half-yearly unaudited report for 2026, the bank's Tier-I capital (going concern capital) stood at 8.19%, which is below the 8.50% threshold mandated by the Bangladesh Bank. While the bank's total capital ratio remained compliant at 12.66% – slightly above the 12.50% requirement – the issuance is necessary to reinforce its primary capital layer.

Industry analysts suggest that the new bond will provide a much-needed buffer to stabilise cash flows and support future asset growth.

The issuance remains subject to final approval from the Bangladesh Securities and Exchange Commission and the central bank.

The capital injection comes at a time when the lender is facing significant pressure on its core banking operations.

During the first half of 2026, Dhaka Bank reported a 13% decline in consolidated net profit, which fell to Tk100 crore. A primary driver of this downturn was a staggering 45% plunge in net interest income, which settled at Tk122 crore.

Consequently, the consolidated earnings per share (EPS) for the six months stood at Tk0.95, down from the previous year.

Despite the struggle in core lending, the bank managed a resilient performance in the second quarter (April–June), posting a 33% growth in consolidated net profit.

This recovery was largely underpinned by robust income from government Treasury bonds and other operating segments, which successfully cushioned the shortfall in interest earnings. Quarterly EPS improved to Tk0.38 from Tk0.29 a year ago.

However, the bank is currently navigating a liquidity crunch, as evidenced by a negative consolidated net operating cash flow per share of Tk10.43 for the first half of the year.

Crude oil futures climbed over $1 a barrel on Friday on tanker attacks and a lack of progress on a peace agreement between the Trump administration and Iran’s leadership.

Brent futures settled at $88.52 a barrel, up $1.45, or 1.67 percent. US West Texas Intermediate crude futures finished at $82.40, up $1.15, or 1.42 percent.
Brent and WTI were on track for weekly gains of 6.0 percent and 5.4 percent, respectively.

“We’re getting a rally going into the weekend after new attacks on tankers and lack of progress on a cease-fire agreement,” said Andrew Lipow, president of Lipow Oil Associates.

A “day of reckoning” may come if traffic in the strait of Hormuz remains constrained, through which 20 percent of global supply can pass, Lipow said.

“Crude oil prices might be $80 a barrel, but diesel prices are $180 a barrel and gasoline is $130 a barrel and that’s what’s hitting the consumer,” Lipow said.

On Thursday, the US said it could maintain a naval blockade of Iran indefinitely and increase economic pressure on Tehran in response to stalled ceasefire talks.

“Watch this space for more announcements coming next week because we are going to apply measures like have never been seen in the history of economic isolation of a country,” Treasury Secretary Scott Bessent said on Newsmax’s “Rob Schmitt Tonight” program.

TRAFFIC SLOWS THROUGH THE STRAIT

As the US and Iran made claims over control of the strait, shipping traffic through the channel fell below the month’s average.

Before US-Israeli attacks on Iran began in late February, the strait handled about one-fifth of global oil and liquefied natural gas supplies.

Two vessels from the state-owned Abu Dhabi National Oil Company were attacked while transiting the strait on Thursday, the United Arab Emirates’ state news agency WAM said, an incident the UAE government condemned as an Iranian attack.

“That’s the headline that pushed up prices: Tankers attacked,” said Phil Flynn, senior analyst for Price Futures Group. Crude oil exports from Russia’s Sheskharis terminal at the Black Sea port of Novorossiysk were suspended on Friday following a drone attack, three sources familiar with the matter said, adding to disruptions at one of the country’s key export outlets.

Flynn said the Ukrainian attack on the port of Novorossiysk was also boosting prices.

While Middle Eastern supplies are constrained, OPEC forecasts pointed to weaker demand growth and US crude inventories posted their largest weekly increase in more than 3-1/2 years.

“This week’s reports by the IEA and EIA were quite revealing. Storage is holding up much better than feared, which should pull oil prices lower,” said Norbert Rucker, head of economics and next generation research at Julius Baer, referring to the International Energy Agency and US Energy Information Administration.

Bangladesh is facing fiscal pressure driven by faster public debt accumulation relative to revenue generation, even as external sector indicators show signs of stabilisation, the central bank said in its latest systemic risk report released today (13 August).

According to the Bangladesh Bank's overview for the first half of fiscal year 2025-26, the government's debt-to-revenue ratio climbed further as debt expansion outpaced tax and non-tax revenue collection. The broader government debt-to-GDP ratio also rose modestly during the period.

The fiscal strain comes despite a marginal narrowing of the overall budget deficit-to-GDP ratio (including grants).

Higher debt accumulation relative to revenue generation continued to weigh on public finances, pushing up the debt-to-revenue ratio. However, overall deficit pressures eased slightly relative to GDP.

The trade balance-to-GDP ratio showed improvement during the review period. In contrast, the remittance-to-GDP ratio posted a marginal decline.

Inflation pressures continued to ease, while taka recorded a marginal appreciation against the US dollar, providing a cushion for import costs, according to the report.

Government borrowing dynamics reshaped the domestic treasury market, with 2- to 5-year treasury bonds overtaking the 5- to 10-year segment to become the largest holding. Short-term treasury bills continued to hold the largest share among money market instruments.

The central bank noted that bank lending growth to private non-financial corporations (NFCs) decelerated further, reflecting cautious credit deployment amid fiscal and macroeconomic adjustments. Non-bank depository corporations (NBDCs), however, saw a modest recovery in credit growth to the sector from near-zero levels.

While commercial banks maintained adequate liquidity indicators, including liquidity coverage ratios (LCR) and net stable funding ratios (NSFR) well above regulatory minimums, finance companies continued to struggle, recording overall negative profitability amid weak net interest income, the central bank said.

The government has instructed government officials to exercise utmost caution while using artificial intelligence (AI) tools for official work, warning that careless use could result in the unauthorised disclosure or transfer of sensitive and confidential government information to third parties.

In a notice issued recently, the Cabinet Division said the use of AI tools in various aspects of official activities in government offices is increasing.

While AI tools can improve the efficiency and productivity of government work, their careless use could pose risks to the security and confidentiality of official information, it said.

The division therefore asked all concerned to exercise the highest level of caution and responsibility when using AI tools in government offices to ensure the security and confidentiality of government information.

It also instructed officials to properly follow existing laws, rules, regulations and directives governing the protection and confidentiality of government information.

The notice comes as AI-powered tools, including generative AI applications capable of drafting, summarising, translating and analysing documents, are becoming increasingly accessible and are being used for a growing range of tasks.