Bangladesh's trade deficit widened 29% year-on-year to $3.82 billion in the first two months of the current fiscal 2026-27 as import payments rose faster than export earnings, Bangladesh Bank data showed.

The trade deficit was $2.96 billion in July-August of the previous fiscal year.
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Imports rose 12.1% year-on-year to $12.20 billion in July-August, while exports increased 5.8% to $8.38 billion, according to the central bank data.

Despite the widening trade gap, the country's current account surplus more than tripled to $599 million during the period, from $197 million a year earlier, largely supported by strong growth in workers' remittances.
Infograph: TBS
Infograph: TBS

Remittance inflows increased nearly 19% to $5.83 billion in the first two months of FY27. Remittance growth was 16% during the corresponding period of the previous fiscal year.

BB data also shows gross official foreign exchange reserves stood at $37.35 billion at the end of August, equivalent to $32.44 billion under the IMF's BPM6 accounting standard, providing roughly 5.2 months of import cover.

Higher petroleum import costs widen trade gap

The rise in import payments was driven largely by a sharp increase in petroleum imports and higher costs of industrial raw materials.

Petroleum imports more than doubled to $2.49 billion in July-August of FY27, from $1.25 billion in the same period a year earlier.

Zahid Hussain, former lead economist at the World Bank's Dhaka office, said the increase in petroleum import costs was the main reason behind the rise in overall import expenditure.

"Petroleum import expenditure increased by more than 115%. This was the main reason behind the 12% increase in import expenditure," he told TBS.

He added that capital machinery imports did not contribute to the increase in import expenditure and that some pressure was visible in the balance of payments.

Ready-made garment exports, the country's main export earner, rose 5.3% to $7.49 billion during the period.

Financial account remains under pressure

Economists said the improvement in the current account was not enough to ease pressure on the country's overall external balance, as the financial account recorded a larger outflow.

Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue, said Bangladesh Bank data showed that the trade gap was widening because imports were growing faster than exports, while strong remittance growth helped increase the current account surplus.

"But the financial account recorded a larger outflow, due to which the deficit widened," she said.

Zahid Hussain said the widening financial account deficit had contributed to a larger deficit in the overall balance of payments.

He attributed the deterioration mainly to a 61% decline in medium- and long-term loan disbursements and a negative position in trade credit.

Medium- and long-term loan disbursements fell 60.9% year-on-year to $291 million in July-August, while amortisation payments stood at $572 million.

Lower foreign project financing

Bangladesh also used less foreign financing for development projects during the period, although the available data do not establish that delays in project implementation were the main reason.

Project-related foreign fund utilisation can be affected by delays in project work, approvals, tendering and procurement, as well as unmet conditions attached to some loans.

Fahmida said the government should review delayed projects with each development partner, identify specific obstacles, resolve them promptly and publish regular updates on project progress and fund disbursement.

She also called for policies to strengthen export earnings and diversify products and markets, while urging greater efforts to bring remittances through formal channels.

The Bangladesh Securities and Exchange Commission (BSEC) has approved the reconstitution of the boards of Beximco Ltd and Shinepukur Ceramics PLC, excluding Beximco Group Vice Chairman Salman F Rahman, to break a years-long operational deadlock and help the companies resume regular activities.

The approval came after Beximco Group asked the regulator to restructure the boards of the two listed companies as part of efforts to restart operations and address long-standing regulatory and financial reporting issues.

BSEC sources said the commission approved the reconstituted boards at its meeting today (6 October) and will send consent letters to the companies.

Salman F Rahman agreed to step down from Beximco's listed boards in September while remaining in custody over multiple criminal charges since August 2024. He is a former private industry and investment adviser to ousted prime minister Sheikh Hasina.

With his exclusion, three listed Beximco Group companies will operate without Salman F Rahman on their boards for the first time since their inception, according to group sources.

Beximco Group had submitted its proposal to the BSEC after consultations with the government and regulatory authorities.

BSEC sources confirmed that after approving a new nine-member board for Beximco Pharmaceuticals, the regulator granted approval to restructure the boards of Beximco Ltd and Shinepukur Ceramics.

Seeking anonymity, a source said, "The commission approved the recast on its meeting held on Tuesday. In this regard, the commission will send consent letters to the companies."

Beximco Group firms faced severe state action, including bank account freezes, during the interim government's tenure following allegations of loan scams, capital market fund embezzlement, and financial anomalies claimed by the officials.

Consequently, around a dozen factories in its Gazipur Industrial Park were forced to shut down operations, resulting in the layoff of over 40,000 workers due to severe shortages of working capital, raw materials, and administrative hurdles in operating bank accounts.

According to a Bangladesh Bank report submitted to the High Court, Beximco Group had total outstanding loans and liabilities of Tk50,098 crore as of 30 November 2024.

Of the total, Tk25,524 crore – more than half – had already been classified as defaulted, while a substantial portion of the remaining liabilities was at risk of becoming defaulted.

Investigations by the Bangladesh Financial Intelligence Unit (BFIU) also found that large portions of the group's loans were obtained through irregular procedures, including through entities that were allegedly non-existent or merely paper companies. Some funds were also allegedly channelled into capital-market share manipulation.

Now, through ongoing talks with relevant authorities under the BNP government, the group is attempting to resume factory operations and return to regular business activities.

Beximco Group proposed board

Following the board reconstitution of Beximco Pharmaceuticals, two other group-owned listed companies – Bangladesh Export Import Company Limited (Beximco Ltd) and Shinepukur Ceramics PLC – requested in the second week of September that the BSEC withdraw two previous orders and approve their newly proposed boards, according to a letter obtained by The Business Standard.

Both proposed boards consist of seven members, including sponsor ASF Rahman, the brother of Salman F Rahman, alongside four directors nominated by the sponsor group.

In compliance with the corporate governance code, the boards also feature two independent directors – one male and one female.

The proposed directors for Beximco Ltd include OK Chowdhury, Iqbal Ahmed, Ajmal Kabir, and Quamrun Nahar Ahmed, with Shah Mojurul Hoque recommended as an independent director.

Shinepukur Ceramics proposed the same sponsor and sponsor-group directors as Beximco Ltd, though it did not recommend an independent director for its board.

Deadlock in financial disclosures

After the fall of the Awami-led government in August 2024, both companies published financials for only a quarter up to December 2024, which covers the second quarter of FY25.

Now, the publication of financials is due for at least five quarters, including annual financials for the third quarter of FY25 and annual financials for FY25, as well as three quarters in a row for FY26.

Also, the annual financial publication for FY26 will be due this month, as the fiscal year ended in June, and the companies have 120 days to publish annual financials.

In the letter, the companies said, "To approve the accounts of the companies must be held by the existing directors, subject to obtaining the necessary permission and coordination of delay from the court."

It further stated, "At the same time, a number of important statutory and regulatory reporting obligations are approaching respective deadlines, including the approval and publication of the audited financial statements for the year 2025-26 and publication of the unaudited financial statements of the first quarter ending 30 September 2026."

Upon approval of the board, the companies informed the commission that they will withdraw their writ petition filed against the commission's previous decision, including the inclusion of new independent directors, and order to hold a meeting with the directors."

Beximco Pharma's recast

The BSEC has granted permission to reconstitute the board of Beximco Pharmaceuticals, excluding Salman F Rahman on 29 September.

The regulator allowed a nine-member new board consisting of three from the Beximco Group, one director from IFIC Bank, and four independent directors, including one female, following the corporate governance code.

Also a new managing director will be appointed in the board, as per the decision of the capital market regulator taken today.

Meanwhile, Beximco Pharmaceuticals will withdraw a suit filed against the challenging regulator's decision. Once the company withdraws the case, the regulator will withdraw its two earlier orders.

The board includes directors from Beximco: ASF Rahman, chairman and founder of Beximco Group, OK Chowdhury and Iqbal Ahmed. OK Chowdhury is currently serving as a director and Iqbal Ahmed as managing director on the board of Beximco Pharma, according to its website.

Bangladesh Bank is set to hold a reverse auction tomorrow to buy back two-year government treasury bonds worth Tk 6,666.58 crore.

The central bank announced the move in a press release issued on October 5.

According to the press release, the auction involves treasury bonds issued on November 6, 2024, which carry a coupon rate of 12.30 percent and are scheduled to mature on November 6, 2026.

The buyback will be conducted following a multiple-price-based reverse auction procedure, with the settlement date fixed for October 12, 2026.
Primary dealer (PD) banks can submit bids directly, while non-PD banks and finance companies holding current accounts with Bangladesh Bank can participate through linked PDs.

Participating entities will be allowed to submit competitive bids for their own accounts, as well as competitive or non-competitive bids on behalf of their clients.

Bids specifying the desired price per Tk 100 face value and the quantity of bonds offered must be submitted electronically via the central bank’s Financial Market Infrastructure (FMI) system between 10am and 12pm on the auction day.
Manual submissions in sealed covers will be allowed under special circumstances with prior approval.

The government is buying back the bonds in order to ensure proper debt repayment management and avoid repaying a large amount at once when the bonds mature.
It will provide investors with an additional liquidity window to rebalance or exit their Treasury holdings.

Bangladesh received US$513 million in workers’ remittances during October 1-5, 2026, marking a 21.4 percent increase from US$422 million received during the corresponding period of 2025.

The country received US$109 million in remittances on October 5 alone, according to Bangladesh Bank data.

Meanwhile, cumulative remittance inflow since July 2026 stood at US$9.104 billion as of October 5, compared with US$8.008 billion during the same period of the previous year, registering a 13.7 percent year-on-year growth.

Beximco Group is seeking government approval for a new leasing model to partially reopen its closed factory operations with investment from British and Chinese firms, according to officials.

British firm Charter HCP Ltd and Chinese company Besting Ltd plan to invest $23 million to partially restart Prefix Fashions Ltd at Beximco’s industrial park in Gazipur under the proposed leasing arrangement.

Khalid Shahrior, senior general manager of Beximco’s Textiles and Apparel Division, and Huda Mohammed Faisal, CEO of Revival Global, which is acting as an asset manager for the two investors, confirmed the development to The Daily Star in a group phone call recently.

Beximco officials are scheduled to meet the chairman of Invest Bangladesh, the country’s apex investment facilitation agency, on October 11 to discuss the proposed business model, Khalid said.

If approved, the plan is to restart the factory in April next year, primarily producing export-oriented jackets, he said. About 90 percent of its production would be jackets, with the remaining 10 percent comprising other products.

Prefix Fashions, one of 16 textile and garment units inside the Beximco Industrial Park in Kashimpur, Gazipur, has been a joint venture with Besting since its inception, according to Khalid.

The factory will initially employ around 2,500 workers if the plan succeeds, according to the officials.

Under the proposed model, the foreign investors would sign a five-year agreement with Beximco Group. Loan repayments would be made directly from the factory’s export proceeds through the banks holding liens over the assets, according to Khalid and Huda.

The arrangement is intended to prevent Beximco from interfering with the repayment process, as the banks would automatically deduct the agreed amount from the export receipts.

The investors expect the factory to ship garments, particularly jackets, worth around $500 million within two to three years. Besting’s position as an international clothing retailer and brand would help generate orders, Khalid said.

If the government approves the plan, Beximco will comply with environmental, social and legal requirements for reopening the factory, he added.

The proposed leasing or profit-sharing model would require approval from Invest Bangladesh and Bangladesh Bank.

If the model proves successful, Beximco plans to reopen the other 15 shut units at the industrial park in phases. The move could create jobs for more than 30,000 workers who lost employment following the closure of the factories, officials estimate.

Revival Group, a Japanese-Bangladeshi venture, has been working with Beximco on plans to restart its shuttered textile operations. The firm was previously involved in a proposed lease arrangement to restart Beximco’s wider textile operations, under which it planned to invest $20 million with US-based Ecomilli.

Beximco has been struggling with a massive debt burden. Its total bank debt stands at more than Tk 40,000 crore, including Tk 29,925 crore against 32 factories at the Beximco Industrial Park, according to media reports.

Janata Bank alone is reportedly owed Tk 23,285.42 crore.

Beximco’s factories, owned by Salman F Rahman, former private industry and investment adviser to former prime minister Sheikh Hasina, faced disruption after the fall of the Awami League government amid a mass uprising on August 5, 2024, when some of the factories were vandalised and set on fire.

Salman remains incarcerated following his arrest in August 2024, when he was caught trying to flee Dhaka through Sadarghat.

The interim government led by Prof Muhammad Yunus subsequently announced the closure of all 16 units in March 2025 after the group failed to pay workers’ wages and dues. The government had earlier provided Tk 526 crore to pay workers’ wages and other dues.

Nahian Rahman Rochi, a member of Invest Bangladesh, told The Daily Star that the government would be able to guide Beximco on the proposal after holding a meeting with Revival and discussing the issue in detail.

The share price of Saiham Textile, a listed firm on the Dhaka Stock Exchange (DSE), soared around 51% in just a month.

According to the bourse's data of the bourse, its shares price soared to Tk43.3 each today (6 October), which was Tk28.7 a month ago on 8 September.

Regarding the price surge, the bourse served a query notice on 4 October to the textile firm.

In response, the company said there is no undisclosed material or price sensitive information about the company for the recent unusual price hike and increase in trading volume in shares.

Today, the share price of Saiham Textile closed at Tk43.30 each, a slight 0.46% jump over the previous trading session.

With 2,265 trades, 60.91 lakh shares changed hands with a trading value of Tk26.23 crore, the DSE data showed.

According to its latest financial statements, in the first nine months of FY26, its profit slightly surged to Tk4.58 crore with an earnings per share (EPS) of Tk0.51.

At the same time of the previous fiscal year, its profit was Tk4.29 crore and EPS Tk0.47.

Saiham Textile got listed on the stock exchange in 1988, and now its shares are trading under the B category.

As of July 2026, out of its total outstanding shares, sponsor-directors held 34.20%, institutional investors 23.73%, and the general public held 42.07%, the DSE data showed.

Finance Minister Amir Khosru Mahmud Chowdhury has responded with a "wait and see" approach to the World Bank's forecast that Bangladesh's GDP growth will slow to 3.4% in FY27.

Journalists asked the finance minister about the projection after a meeting with National Board of Revenue officials at the NBR's Agargaon headquarters today (6 October).
Bangladesh GDP projected to grow at 3.4%, second lowest in South Asia

"Wait and see," Khosru replied.

He left the NBR without making any further comment on the World Bank's forecast.

In its latest South Asia Economic Update, released today, the World Bank revised down Bangladesh's GDP growth forecast for FY27 by 1.2 percentage points to 3.4%. Its forecast for FY26 was also revised down by 0.5 percentage points to 3.4%.

The World Bank said Bangladesh's weaker outlook reflects a more prolonged drag from energy shortages, weakness in the banking sector, subdued credit growth and tighter fiscal constraints than previously anticipated.

World Bank says Bangladesh economic rebound falls short, cuts growth outlook

Export growth is also expected to remain weak, with ready-made garment exports facing weaker demand in the European Union in the short term and increased competition in the longer term.

The World Bank projects South Asia's growth to rise to 6.9% in 2026 before moderating to 6.7% in 2027.

The 3.4% projection is the lowest among the South Asian economies covered in the World Bank's latest regional outlook. The report no longer groups Afghanistan and Pakistan under South Asia.

'Judgment cannot be made within one and a half months'

Asked about the decline in VAT collection during the first one and a half months of the current fiscal year compared with the same period last year, Khosru said it was too early to draw conclusions.

"Judgment cannot be made within one and a half months. There can be some problems at the beginning. Growth comes later, gradually," he said.

The finance minister also said the problems affecting revenue collection have existed for a long time and cannot be resolved overnight.

"Tax collection is slowly picking up. We have to encourage people to pay taxes. There have been problems on both sides for a long time. We are trying to ensure that people can pay taxes without being harassed," he said.

"It's working reasonably well and improving, although there is still room for further improvement," he added.

Khosru expressed confidence that the NBR would be able to meet its revenue collection target for the current fiscal year.

"We hope we will be able to meet the target that has been set. The NBR officials are geared up," he said.

Eastern Housing Limited has recommended a 20% cash dividend for the financial year ended 30 June 2026, down from 25% a year earlier, as its earnings per share (EPS) fell nearly 20%.

The real estate company's share price also dropped 5.44% to Tk78.20 on the Dhaka Stock Exchange (DSE) today (6 October) from Tk82.70 in the previous session.

Eastern Housing disclosed the dividend and audited financial results through the DSE today. Its shares traded without a price limit following the announcement.

The recommended dividend amounts to Tk2 per share, based on the company's Tk10 face value.

EPS fell to Tk6.66 in FY26 from Tk8.27 a year earlier, a decline of Tk1.61 or 19.5%.

However, net asset value (NAV) per share rose to Tk94.15 from Tk89.99.

Net operating cash flow per share (NOCFPS) turned negative at Tk7.43, compared with positive cash flow of Tk2.90 in FY25. The company attributed the deterioration mainly to increased investment in inventory, particularly land, and higher working capital requirements, which led to significantly higher cash outflows.

The company's annual general meeting will be held online on 22 December at 10:30am. The record date for dividend eligibility is 29 October.

Established in 1964, Eastern Housing is one of Bangladesh's oldest real estate developers, mainly engaged in land and apartment development and sales, as well as commercial property development.

In FY25, the company reported sales of Tk303.08 crore and net profit of Tk77.22 crore, up 37% year-on-year.

Listed on the DSE under the ticker EHL, the company has about 9.33 crore shares. As of August 2026, sponsor-directors held 50.44% of the shares, institutions 25.16%, foreign investors 0.03% and general investors 24.37%.

Bangladesh's exports to several major Asian markets recorded year-on-year growth in the first quarter of the current fiscal year, signalling scope for further market diversification beyond traditional destinations in the United States (US) and Europe.

According to the Export Promotion Bureau (EPB), exports to China increased by 9.33 per cent to US$225.41 million during July-September of fiscal year 2026-27, compared with US$206.18 million in the corresponding period of the previous fiscal year.

Exports to the Republic of Korea rose by 7.29 per cent to US$134.55 million from US$125.41 million, while shipments to India increased by 5.44 per cent to US$510 million from US$483.71 million.

Japan also remained a major Asian destination for Bangladeshi products, with exports reaching US$399.11 million during the quarter, marginally higher than US$396.11 million a year earlier.

The figures come against the backdrop of an overall increase in Bangladesh's merchandise exports. The country's total export earnings reached US$13.09 billion in July-September, up 6.34 per cent from US$12.31 billion in the same period a year earlier, according to the EPB data.

The growth in several Asian destinations highlights the potential for Bangladesh to diversify its export markets, strengthen regional trade links and expand participation in Asian supply chains.

However, sustaining the growth will require efforts to identify products with competitive advantages, meet destination-market standards, improve logistics and facilitate access to buyers and distributors.

Talking to BSS, Export Promotion Bureau (EPB) Vice Chairman Muhammad Hasan Arif said Bangladesh needs to strengthen its presence in Asian markets by assessing product-wise performance, buyer demand and opportunities to diversify exports beyond the traditional export basket.

"China offers a large market and opportunities to explore new product categories, while India provides geographical proximity and potential for stronger cross-border commercial links," he said.

Regarding China, Hasan Arif said the EPB is emphasising product diversification to take advantage of the country's huge consumer market and growing demand.

Several Bangladeshi companies participated in the 10th China-South Asia Expo and the 30th China Kunming Import-Export Fair 2026 with EPB support, he added.

He said such participation provides exporters with opportunities to showcase Bangladeshi products, meet potential buyers and understand changing market demand.

Regarding India, the EPB Vice Chairman said the neighbouring country has huge potential for Bangladesh because of its geographical proximity and large consumer market.

"India is our neighbouring country. So, there is huge scope to expand exports in the Indian market. We are trying to resolve the barriers," he said.

He said tariff and non-tariff barriers remain major challenges to increasing Bangladesh's exports to India and stressed the need to address these obstacles.

Regarding South Korea, Hasan Arif said Bangladesh has opportunities to expand exports through product diversification and stronger business links.

Besides readymade garments, he identified potential in leather goods, footwear, jute products, home textiles, pharmaceuticals and processed food.

On Japan, he said there is also significant scope to increase exports, particularly of leather goods, footwear, jute-based products, home textiles, processed food, pharmaceuticals and light engineering products.

He stressed that quality, compliance, timely delivery and understanding market requirements are essential for success in both markets.

The EPB Vice Chairman said the bureau is facilitating exporters through trade fairs, business delegations, market exploration and promotional activities to help diversify Bangladesh's export destinations and products.

Local businesses and prospective issuers remain hesitant to go public due to concerns over corporate compliance, governance requirements and the appointment of independent directors, said Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan.

Speaking at a seminar at the DSE Tower today (6 October), Masud Khan said the regulator wants to facilitate the capital market, but local companies need to overcome their reluctance to comply with regulatory requirements.

The seminar was jointly organised by the Bangladesh Association of Publicly Listed Companies and the Bangladesh Merchant Bankers Association as part of World Investor Week 2026.

Titled "The Future-Ready Investor: Strengthening Resilience, Managing Digital Risks and Investing with Confidence", the seminar brought together market stakeholders to discuss investor resilience, digital risks and confidence in the capital market.

BAPLC President Riad Mahmud chaired the session, with BSEC Chairman Masud Khan attending as chief guest alongside BSEC Commissioner Nafeez Al-Tarik, Dhaka Stock Exchange (DSE) Chairman Mominul Islam, and Chittagong Stock Exchange (CSE) Chairman AKM Habibur Rahman as special guests.

Shift in IPO vetting and governance concerns

Addressing corporate apprehensions, the BSEC chief announced that the regulator will no longer inspect or scrutinise paper-based documentation during the initial public offering (IPO) process, passing that vetting duty entirely to the stock exchanges.

He noted that in the past, the primary focus was on inspecting sacks of papers rather than analysing a company's past performance, business model, and reputation. While auditors and stock exchanges will thoroughly verify documentation without BSEC asking questions regarding IPO paperwork, companies must fulfill their compliance obligations.

Reassuring business leaders, the commission noted that appointing independent directors does not alter core strategic control, as key decisions remain driven by principal owners. Furthermore, maintaining unrecorded financial transactions is becoming virtually impossible as banking, taxation, and financial ecosystems transition toward greater digitisation.

Market depth, direct listing, and mutual fund overhaul

Reflecting on the commission's performance over the past three months, BSEC Chairman Masud Khan highlighted the need to address Bangladesh's low stock market capitalisation, which currently stands at around 6% of GDP, compared with more than 130% in India.

To address this low depth, the regulator plans to reduce the IPO approval timeline to around three to three-and-a-half months.

The BSEC is also revising its direct listing rules to attract reputable state-owned enterprises, multinational companies, financial institutions and large private corporations with annual turnover or total assets exceeding Tk1,000 crore.

Simultaneously, the regulator is overhauling the mutual fund industry. Emphasising that close-ended funds will receive no further extensions, the BSEC reaffirmed that fund management will be reviewed or liquidated if the Net Asset Value (NAV) drops below 75% for six consecutive months, while plans are underway to introduce trained mutual fund agents following successful regional models.

Masud Khan also said, mutual funds currently cannot invest in bonds, which is absurd. It should be lifted.

Auditor accountability and rating agency surveillance

BSEC Chairman said, to rebuild structural integrity, the regulator has eliminated the requirement for stock exchanges to seek prior BSEC approval before initiating internal inquiries.

He said, financial disclosure standards will be rigorously enforced by holding auditors directly accountable for validating financial statements and documentation.

Furthermore, credit rating agencies have been placed under strict surveillance to prevent inflated or misleading ratings from distorting market assessments.

Rising digital scams, AI surveillance, and stringent rules

Delivering the keynote presentation, Southeast Bank Capital Services Limited Managing Director Mominul Haque warned that stock market scams have become increasingly sophisticated. Fraudulent syndicates are now using artificial intelligence (AI) technology to generate fake documents and lure unsuspecting investors into Ponzi schemes on platforms like Facebook, WhatsApp, and Telegram.

He cautioned investors against six key red flags, including guaranteed high returns, payoff platforms, withdrawal fees, artificial pressure or urgency, unregistered advisers and unverifiable information.

To tame capital market scams and combat digital fraud, the BSEC is preparing comprehensive countermeasures, including unified back-office software, AI-driven surveillance, digital orders, limits on refunds, raised flags over suspicious trading, and decisive enforcement actions, he said.

Stricter compliance rules, including stringent circuit breakers, are also being enforced for Z-category and non-compliant companies to manage artificial price volatility and curtail speculative runs driven by market manipulation, said the DSE Chairman Mominul Islam.

Addressing the gathering, DSE Chairman stressed that low floating shares and shallow market depth leave the market highly vulnerable to price manipulation.

He urged a pivot toward expanding product offering, such as accelerating bond market development and simplifying listing rules, and expanding institutional participation to cushion short-term volatility.

He emphasised that traditional surveillance confined to brokers and issuers is no longer sufficient, calling for AI-driven keyword detection to track unauthorized digital advisors and online fraud syndicates.

CSE Chairman AKM Habibur Rahman emphasised the necessity of building "future-ready" investors through portfolio diversification, risk resilience, and financial literacy.

He noted that spreading investments across diverse asset classes and maintaining an adequate liquidity buffer prevents panic selling during market downturns.

Stating that investor confidence relies on evaluating fundamental metrics rather than unverified market rumors, he concluded that emotional discipline, reliance on registered intermediaries, and personal caution remain the ultimate safeguards against capital market fraud, he added.

Bangladesh's GDP growth may get stuck at a low 3.4 per cent in the current fiscal year as decelerators like energy and banking-sector vulnerabilities, weak investment and persistent inflationary pressure subdue economic activity, says the World Bank.

It also lists limited tax reforms, rising current expenditure, and high domestic borrowing as hikers of fiscal pressures for the country.

The Washington-based lender, in its latest Bangladesh Development Update, on Tuesday projected the real gross domestic product (GDP) growth at 3.4 per cent in FY2026-27 for the country, a sharp downgrade from its April forecast by 1.2-percentage points.

The latest projected growth is also significantly below Bangladesh's average growth of around 5.6 per cent over the past decade, according to the WB report rolled out in its Dhaka office that stresses comprehensive reforms as a remedy.

The shocks will not only dampen the higher economic growth prospect, the poverty rate might also increase in the near term, the WB forecasts.

It expects growth to recover only modestly to 3.9 per cent in the next FY2028, provided energy- supply constraints gradually ease and the government accelerates structural reforms.

The global lender has said Bangladesh's economic slowdown has become increasingly entrenched since 2023, with persistent structural constraints weighing on investment and economic activity.

About the banking sector, the WB update says financial-sector vulnerabilities have intensified and now pose growing systemic risks.

Citing the example of higher non-performing loans (NPLs), negative 2.6-percent capital- adequacy ratio against a regulatory minimum of 10 per cent, it says even this figure is overstated-about US$17 billion in loan-loss provisioning has been deferred for undercapitalized banks.

Bangladesh Bank's uncollateralized liquidity support to weak banks stood at Tk 760 billion (US$6.2 billion) which could create "quasi-fiscal losses if the claims turn bad".

Criticized also is the reinstatement of a 4.0-percent cap on banks' interest spread in June 2026, calling it a reversal of market-based rate setting. It urges the removal of the cap, completion of asset-quality reviews, time-bound bank restructuring and an end to regulatory forbearance.

The development financier cautions that continued regulatory forbearance and liquidity support could delay the recognition and resolution of losses rather than repairing banks' balance sheets.

The banking-sector stress is also affecting credit intermediation. Private-sector credit growth has fallen to around 4.5 per cent-its lowest level in decades-while banks have "increasingly financed the government".

The weak banks restrict credit to businesses, while heavy government borrowing from banks can further crowd out private investment.

The Development Update says energy shortages have emerged as a major constraint on industrial production and investment.

Declining domestic gas production, disruptions in imported liquefied natural gas (LNG) supplies and rising energy costs have affected industrial operations, resulting in factories closure and below-capacity operation.

The World Bank has said the outlook remains subject to significant downside risks, including prolonged energy constraints and elevated global commodity prices.

"Bangladesh has become increasingly dependent on imported LNG as domestic gas production declines. The energy problem therefore represents more than a temporary supply disruption. It is increasingly becoming a constraint on industrial competitiveness, investment and potential economic growth."

In WB's view, the investment activity has softened, while exports have lost momentum.

"High inflation has reduced household purchasing power and raised business costs, while financial-sector weaknesses have undermined investor confidence," it says, adding that the limited fiscal space is also constraining public investment.

It notes that revenue mobilisation remains particularly weak. Government revenue stood at only 8.3 per cent of GDP, among the lowest levels globally, limiting the government's capacity to increase productive public spending while simultaneously supporting the banking and energy sectors.

"The combination of weak private investment and constrained public investment is, therefore, creating a major obstacle to a faster recovery."

Inflation is projected to remain elevated at 8.6 per cent in FY2026-27, before easing to 7.1 per cent in FY2027-28.

As such, the WB sees Bangladesh facing a difficult near-term environment in which weak growth and high inflation coexist.

The WB development update, however, mentions some positive developments in external sector for Bangladesh as it offers some relief.

"Strong remittance inflows and an improvement in foreign-exchange reserves have provided support to the external sector. Remittances increased 17.3 per cent to a record $35.6 billion in FY2025-26, helping contain pressure on the balance of payments."

The global lender has called for urgent reforms in the banking, energy and domestic revenue sectors to restore investor confidence and create jobs.

In the banking sector, the priority should be to identify the true condition of troubled banks, recognise losses, strengthen capital and improve governance rather than rely on repeated regulatory concessions and liquidity support.

Bangladesh needs to expand domestic gas exploration, improve LNG infrastructure, upgrade transmission and distribution systems, develop renewable energy and ensure greater transparency in energy procurement.

The World Bank has also called for stronger domestic revenue mobilisation to create fiscal space for productive public investment.

"To avert economic downturn and return to an inclusive growth path, driven by private investment, fast and bold reforms are needed in the banking sector, domestic revenue mobilisation and energy sector," said Jean Pesme, World Bank Division Director for Bangladesh and Bhutan.

Unless these bottlenecks are addressed, the projected rise in growth from 3.4 per cent in FY2026-27 to 3.9 per cent in FY2027-28 could remain a modest recovery rather than a return to the country's previous growth trajectory.

In a spotlight on the revenue sector, the WB notes that though revenue mobilisation in Bangladesh improved modestly in FY26 but remained significantly below the target.

The improvement, however, was constrained by weak industrial and income growth and subdued consumption amid elevated inflation.

The WB report also has identified low tax compliance, a narrow tax base, weak and fragmented tax administration and high tax expenditures as persistent obstacles to stronger revenue mobilisation.

Tax collection by the National Board of Revenue (NBR) reached only 82.6 per cent of the FY26 target, despite registering 12.0-percent year-on-year growth.

Overall domestic revenue is estimated to have increased from 8.0 per cent of GDP in FY25 to 8.3 per cent in FY26.

It notes that reforms to strengthen tax mobilisation remained limited during FY26. A key institutional reform-the separation of tax-policy formulation from tax administration-continued to face delays.

Progress in implementing the Tax Expenditure Management Policy Framework was also limited, with no comprehensive tax-expenditure report published during FY26 as required under the policy. It recommends stronger institutional capacity, improved compliance enforcement and greater digitisation of tax administration.

Creating fiscal space for development will require a significant increase in revenue collection from its current low level, the World Bank suggests as one of the must-dos.

It has identified a clear separation between tax policymaking and tax administration as a key priority, arguing that this would enable more strategic tax-policy design and more effective implementation.

The report recommends modernising tax administration through greater digitisation, integrated taxpayer databases and better use of data to improve compliance.

It has also called for a review and gradual phase-out of poorly targeted tax exemptions and incentives that reduce government revenue without generating sufficient economic benefits.

"A simpler VAT system with a more uniform structure, broader coverage and modern digital filing and invoicing systems could improve both efficiency and compliance."

Strengthening the administration of income, corporate and property taxes would also help broaden the tax base, reduce informality and raise revenue without increasing tax rates, according to the report.

It says direct taxes and transfers reduced inequality and poverty but regressive indirect taxes offset part of those gains.

The World Bank has said a stronger and more progressive fiscal system would require better targeting of subsidies and transfers alongside reforms to revenue mobilisation.

The Dhaka Stock Exchange (DSE) extended its losing streak to four consecutive trading sessions today (6 October), with persistent selling pressure reflecting growing investor caution over corporate earnings and dividend declarations.

The DSEX, the benchmark index of the DSE, fell 20.37 points, or 0.37%, to settle at 5,424.62. The index has lost around 125 points over the past four sessions.

Despite the fall in the index, turnover increased slightly. The DSE recorded Tk564.18 crore in turnover, up nearly 5% from Tk537.12 crore in the previous session.

The broader market remained negative. Of the 390 companies and mutual funds traded on the DSE, prices of 270 declined, while 79 advanced and 41 remained unchanged.

The DSE30 index, which tracks 30 leading blue-chip companies, fell 4.65 points to 2,077, while the Shariah-based DSES index declined 4.94 points to 1,074.

One of the key factors behind the recent decline is growing investor caution over the financial results and dividend declarations of listed companies with June-ending fiscal years.

Several companies are now publishing their annual financial results and announcing dividends. Concerns over weaker earnings or lower-than-expected dividends have prompted some investors to sell shares ahead of the announcements.

Broader economic uncertainty is adding to the pressure on investor sentiment. Concerns over corporate earnings, business costs, interest rates and the overall economic situation are making investors more reluctant to take risks.

The selling has been broad-based rather than confined to a few large-cap stocks.

On 4 October, the DSEX fell 48 points as prices of 291 companies declined. Market capitalisation dropped by around Tk7,700 crore, while turnover fell 25% to Tk542 crore.

The following day, the DSEX fell another 37 points to settle at 5,445. Prices of 284 companies declined, compared with only 54 gainers.

The selling pressure continued yesterday, with 270 stocks closing lower.

Sector-wise, mutual funds, services and real estate, and general insurance stocks faced selling pressure. In contrast, food and allied and information technology stocks showed some positive movement.

Orion Infusion, Information Services Network and Eastern Cables were among the top gainers. Their share prices rose 7.85%, 7.68% and 7.32%, respectively, according to DSE data.

Trading on the Chittagong Stock Exchange (CSE) also remained negative. Of the 195 issues traded, 120 declined, 53 advanced and 22 remained unchanged.

A total of 31.93 lakh shares and units changed hands on the CSE, with total turnover amounting to Tk17.13 crore.

The Bangladesh Securities and Exchange Commission (BSEC) has decided to speed up stock market surveillance by allowing its concerned units to investigate abnormal transactions and price movements without prior approval from the commission.
The concerned units would be able to take necessary action once they identify unusual transactions or price fluctuations, BSEC Chairman Masud Khan said yesterday, while speaking as the chief guest at a seminar organised to mark World Investor Week 2026.

The Bangladesh Association of Publicly Listed Companies (BAPLC) and the Bangladesh Merchant Bankers Association (BMBA) jointly organised the event at the Dhaka Stock Exchange (DSE) auditorium.

Masud said requiring approval from the commission through a meeting before initiating an investigation or inspection often causes delays in surveillance.

“That is why this decision has been taken,” he said.

He also said the number of companies listed on the capital market is expected to increase, making it impossible to monitor the entire market through manpower alone.

The commission will therefore establish a technology-driven surveillance system, he said.

Also Speaking at the event, Dhaka Stock Exchange (DSE) Chairman Mominul Islam said stricter surveillance was needed to prevent manipulation of small-cap and weak-fundamental companies.

He said stricter trading restrictions could be imposed on small-cap and weak-fundamental shares by placing them in separate categories.

This would give investors advance warning if unusual price movements occurred in a share, he added.

Mominul also identified the absence of registered financial analysts as a major weakness in the market.

Professional analysis on whether a company’s shares should be bought, sold or held would help investors make more informed decisions, he said.

It could also make it harder for manipulators to create confusion in the market, he added.

He said stock exchanges and the BSEC had traditionally focused their surveillance on brokers, investors and issuers involved in trading.

“The scope of that surveillance needs to be expanded further,” he said.

In addition to using artificial intelligence to detect manipulation and fraud, initiatives should be taken to identify people using AI to commit fraud through digital platforms and bring them under the law, Mominul said.

Prof Al-Amin, acting dean of the Faculty of Business Studies at Dhaka University, said “pump-and-dump” schemes were one of the major problems in the stock market.

In such schemes, the price of a share is artificially inflated rapidly to create investor interest before manipulators sell large volumes of shares and exit, he said.

If such manipulation is not detected and addressed quickly, it can harm the market, he said.

Institutional investors can also be drawn into such schemes, after which retail investors may suffer losses when large investors exit, Al-Amin said. Such manipulation can both erode investors’ capital and create liquidity problems in the market.

The professor also said in cases of unusual price surges, it is not difficult to identify who is buying the shares.

“Analysing transaction data makes it possible to understand who is buying the shares and how trading is taking place,” he said, adding that effective intervention and strong resolve from the regulator were essential.

Middle East crude exports recently climbed to their highest levels since the start of the Iran war as more Gulf producers resume transit through the Strait of Hormuz – despite the continued threat of Iranian attacks.

Yet oil prices remain stubbornly elevated, suggesting logistical problems are proving as disruptive as outright supply losses.
Crude flows through the embattled waterway reached 14.2 million barrels per day on a seven-day average on Sept. 26, nearly 80 percent of pre-war levels, according to analytics firm Kpler.

While volumes have declined since, they will likely be revised higher because ships often disable satellite tracking systems while traversing the strait and for several days thereafter.

Either way, the trend is clear: a lot more crude is getting through the strait.

So why is Brent still trading above $100 per barrel? In a word, logistics.

For decades, the global oil industry functioned as a finely tuned system designed to move enormous volumes of crude and fuels over long distances at the lowest possible cost.

The conflicts in the Middle East and Eastern Europe have fractured that model, as a combination of record-high tanker rates, soaring insurance costs and a severe shortage of refining capacity has created bottlenecks across the energy supply chain.

Those problems may take months, if not years, to unwind, leaving consumers facing persistently high energy bills – even if the crude supply squeeze continues to ease.

Iran’s blockade of the Strait of Hormuz following the onset of the war with the US and Israel on February 28 rapidly reshaped global oil flows.

Gulf producers diverted supplies through alternative routes, buyers sought barrels from more distant regions and governments released unprecedented volumes of oil from strategic reserves.

One of the biggest changes was that Saudi Arabia – previously the world’s largest oil exporter – diverted its exports through its East-West pipeline, which delivers crude to the Red Sea port of Yanbu.

At one point this year, 4 percent of global oil supplies were via this route.

However, after the pipeline came under attack by Iranian-backed Iraqi militias in early September, Saudi Arabia was forced to redirect exports back to the Gulf via Hormuz, which it discovered, could be more easily transited than previously thought.

Saudi exports through Hormuz averaged 3 million bpd in September, the highest level during the conflict, according to Kpler.

While Saudi Arabia’s crude exports through Hormuz in September were still only around half of pre-war volumes, the Kingdom’s exports could quickly near pre-war levels as the East-West pipeline gradually returns to normal operations.

Ironically, then, the attack on the East-West pipeline, which was intended to cripple Riyadh, may have instead weakened Tehran’s most powerful leverage – its purported control of the Strait – by demonstrating that large volumes can still transit Hormuz and other major export hubs despite continued attacks.

Yet the recovery remains fragile.

On the one hand, the increase in Gulf exports has helped reduce the global oil deficit.

Energy Aspects estimates the market now faces a shortfall of around 1.6 million bpd, down from roughly 4 million bpd during the peak disruption in May.

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Under normal circumstances, such an improvement in supply would exert significant downward pressure on prices.

Instead, Brent remains above $100 a barrel, more than 40 percent above pre-war levels.

Prices certainly reflect a substantial risk premium linked to the possibility of renewed escalation, as Washington and Tehran have still failed to reach any form of understanding over the future of Hormuz.

But geopolitics is only part of the story.

Freight and insurance costs, once a relatively minor component of the delivered price of oil, have become major price drivers.

This is partly due to the current shuttle system operating around the Gulf.

Multiple tankers are frequently required to transport crude though Hormuz to the Gulf of Oman, where cargoes are transferred to smaller vessels before heading to buyers in Asia.

This ties up significant numbers of very large crude carriers, reducing vessel availability elsewhere.

At the same time, buyers are increasingly sourcing crude from the Atlantic Basin and shipping it to Asia over longer routes, further tightening tanker supply.

The result has been a surge in key tanker rates to record highs.

Rates to transport crude from the Middle East to Asia aboard a very large crude carrier recently exceeded $1.2 million per day, up from roughly $30,000 a day in January, according to shipping broker Poten & Partners.

As a result, freight costs that once accounted for around 3 percent of the delivered price of a barrel now represent roughly 27 percent.

These costs are unlikely to normalise until trade flows return to something resembling their pre-war pattern.

Indeed, a further recovery in exports through Hormuz may initially worsen the situation by increasing demand for the elaborate shuttle networks now required to move crude safely through the region.

The loss of refining capacity in the Middle East and Russia, where Ukrainian drone attacks have crippled dozens of plants, has compounded the problem, particularly for diesel.

Diesel prices have surged to record highs, becoming a major political concern for U.S. President Donald Trump ahead of next month’s midterm elections, as diesel powers much of modern industry, agriculture and manufacturing.

The Group of Seven’s decision last week to release diesel from strategic stocks will likely provide only temporary relief as it does nothing to restore lost refining capacity.

What’s more, refiners are increasingly competing for the medium-sour crude grades that generate higher diesel yields.

Those barrels are concentrated in the Middle East and Russia, precisely the regions where supply disruptions remain most severe.

That dynamic is creating a feedback loop.

Tight refining capacity boosts diesel prices, which increases demand for diesel-rich crude grades, which in turn supports crude prices.

The result is that oil prices are no longer primarily a function of supply, but of the industry’s ability to transport and process crude – making it much more challenging to bring these prices down.

Senior officials in India and the United States have indicated long-running efforts to finalise a bilateral trade agreement have stalled, again.

Both nations had agreed to a framework for the deal in February which brought down to 18% from 50% the punitive tariff on ​most Indian goods imposed in August last year after a previous round of talks collapsed.

In the meantime, the Supreme Court invalidated US President ‌Donald Trump's use of emergency powers to impose sweeping tariffs globally, leading to a 10% baseline rate. But a final deal between two of the world's biggest economies remains elusive.

Why have trade talks trade talks hit a wall?

Trade talks have reached a "plateau" with little room for manoeuvre, Finance Minister Nirmala Sitharaman said earlier this week, following United States Trade Representative Jamieson Greer's comment ​that a deal is not "imminent."

Neither side has detailed reasons for the delay in finalising the deal.

But talks in the past months have met with ​complications, most recently a new US law that paves the way for up to 100% tariffs on Indian goods because of ⁠New Delhi's purchase of Russian oil. Those purchases have not been significantly reduced.

The potentially stiff levy goes against New Delhi's efforts to secure tariff terms better ​than peer economies, including Vietnam and China.

A deal has also been held back because Washington is yet to complete a Section 301 trade investigation on several nations ​over alleged excess industrial capacity. The probe is to evaluate whether such overproduction is hurting or undercutting American industries.

Unless this probe is completed, it is hard to tell what final tariff Indian goods will attract.

Overall, bilateral ties between India and the US have been rocky this past year, casting a shadow on efforts to stabilisetheir trade partnership.

Events including a US military ​attack on a ship off Oman that killed three Indian seafarers and India rejecting Trump's repeated claim of brokering a ceasefire with Pakistan have hurt relations.

What is at stalk?

The US is India's largest export market and exports have so far been resilient.

India's goods exports to the United States rose to $42.79 billion in April-August from $40.39 billion a ‌year earlier. ⁠In the fiscal year 2025/26, India enjoyed a nearly $34 billion trade surplus with the US.

India says many of its largest export categories to the US, including generic pharmaceuticals and smartphones, are not subject to the current 10% levy.

But analysts say that in the absence of a trade deal, India risks higher US tariffs from the ongoing trade probe and purchase of Russian oil, even if it could negotiate for waivers under the sanctions law.

Another increase in tariffs could ​hurt businesses, dent market sentiment and hurt ​the Indian currency, which is ⁠already trading close to record lows.

What more do the two sides want?

India is striving to protect politically sensitive sectors, particularly agriculture, while securing better tariff treatment for its exporters.

India has sought to keep dairy, poultry, rice, wheat and other farm ​products outside the scope of market-opening commitments. It wants greater certainty over US tariffs before making concessions.

The Trump administration ​wants India to ⁠cut Russian oil purchases, arguing Indian purchases of Russian crude help finance the war in Ukraine.

India says decisions on where to source fuel are driven by the energy needs of its 1.4-billion-strong population.

Russian crude became particularly important after Moscow's full-scale invasion of Ukraine because it was available at discounted prices. The war in the Middle East ⁠and resulting ​disruptions have sharpened the calculation over energy imports.

Are further talks planned?

US Secretary of State Marco Rubio ​is expected to visit India later this month, when two-way talks could make some progress.

Modi and Trump, who spoke by phone on September 30, are also expected to speak again soon to ​review progress. Modi is expected to visit the US in December for a G20 leaders' meet.

Global efforts to curb tax avoidance by multinational corporations are fundamentally altering the strategies countries use to attract foreign investment, moving the focus away from traditional tax havens toward broader economic fundamentals, according to a report released by the International Monetary Fund (IMF).

In an analytical insight following its latest (October 2026) global outlook, the IMF highlighted that international tax reforms, including the implementation of the global minimum corporate tax framework, are significantly diminishing the efficacy of low-tax regimes as a primary tool for courting global business.

In an analytical insight following its latest (October 2026) global outlook, the IMF highlighted that international tax reforms, including the implementation of the global minimum corporate tax framework, are significantly diminishing the efficacy of low-tax regimes as a primary tool for courting global business.

However, as international rules tighten to prevent profit shifting and base erosion, governments are increasingly forced to re-evaluate their investment promotion strategies, the organisation said.

Instead of competing in a "race to the bottom" on corporate tax rates, countries are now shifting their focus toward non-tax competitive advantages, it said.

These include strengthening physical and digital infrastructure, building a highly skilled labor force, ensuring regulatory predictability, and improving the overall ease of doing business.

The Washington-based lender pointed out that this structural shift offers both opportunities and challenges, particularly for developing and emerging economies.

While the erosion of tax-based competition levels the playing field, countries with severe infrastructure deficits or weak governance may face greater pressure to accelerate structural reforms to remain attractive to foreign direct investment (FDI).

The IMF urged policymakers globally to adapt to this changing landscape by aligning domestic tax administration with international standards while simultaneously prioritizing investments in productivity-enhancing public assets, human capital, and transparent legal frameworks to secure sustainable long-term economic growth.

India's Adani Power has signed a shareholders' agreement with Bhutan's state-owned Druk Green Power Corporation (DGPC) to develop the 770MW Chamkharchhu-I Hydroelectric Project in Bhutan.

The agreement was signed today (6 October), according to a statement from Adani Power.

The project marks the second major hydropower collaboration between the two companies, following the agreement for the 570MW Wangchhu Hydroelectric Project in September 2025.

It is also part of the broader 5,000MW hydropower development memorandum of understanding signed between the Adani Group and DGPC in May 2025.

The peaking run-of-river project will be located on the Chamkarchhu River in central Bhutan's Zhemgang district. Construction is expected to begin in the first half of 2027, with commissioning targeted within six years of groundbreaking.

The project will be developed through a 49:51 equity partnership, with Adani Power holding 49% and DGPC 51%.

It will be implemented under the Build, Own, Operate and Transfer (BOOT) model, with a 30-year concession from the date of commercial operation (COD).

The project is expected to help meet Bhutan's peak electricity demand during winter, while surplus power will be exported to India during the summer months.

Bhutan Prime Minister Lyonchen Dasho Tshering Tobgay, along with Finance Minister Lekey Dorji and Gem Tshering, of energy and natural resources, attended the signing ceremony.

Adani Power Managing Director Anil Sardana said surplus power from the project would be exported to India during the summer.

"Hydropower will play a pivotal role in accelerating South Asia's energy transition, and this project will contribute significantly to enhancing energy security, reducing carbon intensity, and advancing shared sustainability goals," Sardana added.

DGPC Managing Director Chhewang Rinzin said the project would strengthen Bhutan's energy security during winter while creating opportunities to optimise and export surplus clean energy to India.

Heavy reliance on rental and quick-rental power plants and capacity payment arrangements created significant fiscal liabilities for Bangladesh, the World Bank said yesterday.

Despite substantial gains in generation capacity, the structural foundation of the country’s energy sector has steadily eroded over the past decade due to weak governance and policy failures, the global donor said.

The energy sector sits at the heart of Bangladesh’s development ambitions and challenges.

Domestic gas production, long the backbone of Bangladesh’s energy system, has steadily declined as mature gas fields became depleted and exploration activities failed to keep pace with rising demand, the WB said in its Bangladesh Development Update.
“The resulting supply gap was increasingly filled by imported LNG, and Bangladesh, once fully self-sufficient in natural gas in 2017, now relies on imports to meet one-third of its total gas demand.”

Over the past decade, power generation capacity expanded rapidly through a growing contribution from private-sector producers, whose share of total electricity generation stood at 43 percent, the WB said.

Although installed generation capacity improved, the sector continues to face critical constraints in fuel and gas availability, as well as transmission and distribution bottlenecks that limit the effective utilisation of available capacity, the report said.
“These structural weaknesses have contributed to the current gas and power crisis. Bangladesh now relies heavily on LNG imports to offset declining domestic gas production, making the sector vulnerable not only to international price volatility and FX pressures, but also to disruptions at a small number of floating storage and regasification units (FSRUs).”

Recent technical failures and operational disruptions affecting FSRU facilities at Maheshkhali significantly reduced gas supply to the national grid, worsening an already sizable gap between demand and available supply, it said.

“The disruption exposed the systemic risk of over-reliance on a small number of domestic gas fields and critical import nodes.”

The economic consequences of the crisis have been significant.

Reduced gas supply disrupted production across major industrial zones in Bangladesh, with many factories operating below capacity or temporarily suspending operations due to inadequate gas pressure. Power generation has also been affected, leading to widespread load shedding and periodic electricity shortages that have disrupted households and business activity, forcing many to rely on expensive diesel generators. This has prompted emergency government measures such as mandatory early closures for shopping malls and retail centres to curb peak electricity demand.

Gas shortages have also affected households and transport, with many consumers facing cooking difficulties and long queues at compressed natural gas filling stations, the World Bank said.

“The cumulative effect has been lower industrial output, higher production costs, and increased uncertainty for private investors.”

Bangladesh's social protection framework faces an unprecedented test as rising national poverty, persistent food inflation, and deteriorating real wages leave millions of vulnerable households exposed to severe economic shocks, according to the World Bank's latest Bangladesh Development Update.

The report was released at a press conference in the capital on Tuesday.

With state fiscal space narrowing sharply due to a historic drop in the tax-to-GDP ratio, the global lender has warned that nearly 62 per cent of the country's poor remain entirely excluded from primary government safety net schemes, underscoring the urgent necessity of structural targeting reforms.

The expansion of household distress comes on the back of four consecutive years of climbing national poverty rates, which reached an estimated 22.5 per cent in the last fiscal year, pushing approximately 2.1 million additional citizens below the poverty line.

The economic downturn has been compounded by stagnant job creation and severe employment contractions in industrial and service sectors, forcing a significant portion of the workforce into low-productivity agricultural labour.

Female workers have borne the brunt of this shift, with all net new female employment since 2016 absorbed by agriculture, alongside falling real earnings for low-paid workers across the country.

Furthermore, families in the bottom fifth of the population now dedicate nearly 60 per cent of their total income solely to purchasing food, leaving them without any financial buffer against external price hikes or unexpected income disruptions.

Despite allocating roughly 3.5 per cent of gross domestic product towards social protection and broad-based subsidies, public welfare spending remains heavily distorted by regressive distribution mechanisms.

The World Bank analysis reveals that only 54.4 per cent of individuals in the poorest quintile directly receive social assistance from government programmes, whereas 31 per cent of households in the wealthiest quintile continue to access safety net disbursements.

This misallocation extends to monetary value, with recipients in the poorest fifth collecting an average of Tk 7,140 annually, compared with Tk 10,472 received by individuals in the richest fifth.

Overall, roughly half of the nation's poorest citizens receive no state welfare support whatsoever, leaving them acutely exposed to inflationary pressures.

The imbalance is further exacerbated by untargeted state subsidies in energy and agriculture, which strain the public exchequer while disproportionately benefiting higher-income groups.

In the power sector, electricity price supports are linked directly to consumption volumes, allowing the richest 20 per cent of households to capture 33 per cent of total subsidy allocations, compared to just over 15 per cent reaching the poorest quintile.

Bangladesh Bank has summoned the operator of the Q-Cash network and ordered it to restore disrupted card and switching services after technical upgrades, system migration and maintenance work affected digital transactions at several banks.

The disruption began around 9pm on 4 October, according to a Bangladesh Bank press release issued today (6 October).

The central bank said services linked to cards, ATMs and the National Payment Switch Bangladesh (NPSB) had been affected, causing inconvenience to customers of banks using the Q-Cash network.

However, Q-Cash network services resumed at 10pm today.

Q-Cash is operated by IT Consultants PLC.

Bangladesh Bank said it was taking necessary measures to protect customers' interests and maintain the continuity of financial transactions.

The central bank has already summoned the management of IT Consultants PLC and instructed it to restore all card-related services, including switching, as soon as possible.

It said it was also working to restore the affected services at the earliest opportunity.

Transactions through banks directly connected to NPSB remain normal, according to Bangladesh Bank.

Services provided by mobile financial service (MFS) operators and other payment service providers are also functioning normally.

Other central bank-operated payment systems — including the Bangladesh Automated Clearing House Payment System (BACPS), Bangladesh Electronic Funds Transfer Network (BEFTN) and Real Time Gross Settlement (RTGS) — are continuing without disruption.

Bangladesh Bank has advised customers to follow instructions issued by their respective banks and use alternative payment channels where necessary.