The Dhaka Stock Exchange (DSE) benchmark index fell nearly 19 points on Thursday (1 October) as renewed selling pressure and investor caution over weaker corporate earnings weighed on the market.

The DSEX, the broad index of the DSE, dropped 18.79 points, or 0.34%, to settle at 5,531.65, reversing the previous session's brief recovery.

The DS30, which tracks 30 leading blue-chip companies, fell 4.86 points, or 0.23%, to 2,103.55.

The Shariah-based DSES index declined 2.20 points, or 0.20%, to 1,100.26, while the large-cap CDSET index fell 2.35 points, or 0.21%, to 1,103.26.

According to EBL Securities, market momentum remained under pressure from the opening bell as investors stayed cautious about the sustainability of the recovery.

"The lack of conviction over a sustained recovery led sellers to regain dominance in the final hour of trading, dragging most stocks into negative territory," the brokerage said in its market commentary.

Despite the decline in indices, turnover rose 3.4% to Tk720 crore from Tk700 crore in the previous session.

Of the 395 issues traded on the DSE, 240 declined, 84 advanced and 71 remained unchanged.

Non-bank financial institutions (NBFIs) recorded the highest decline among major sectors, falling 1.20%. Food & Allied declined 0.44%, followed by Fuel & Power at 0.32%, Pharmaceuticals at 0.26%, Engineering at 0.15% and Banks at 0.14%.

Telecommunications was the only major sector to post a gain, rising 0.01%.

EBL Securities said Services and Travel were the worst-performing sectors, both falling 1.8%, while General Insurance declined 1.7%. Tannery was the only sector to post a positive return, gaining 0.4%.

Textile stocks accounted for the largest share of market turnover at 32.5%, followed by General Insurance at 13.6% and Pharmaceuticals at 8.7%.

IPDC Finance PLC was the most traded stock, with shares worth Tk51 crore changing hands. Its share price, however, fell 6.5%.

Block trades accounted for 8.4% of the day's total market turnover, according to BRAC EPL Securities.

In contrast, the Chittagong Stock Exchange ended the session higher. Its Selective Categories' Index (CSCX) gained 19.4 points, while the All Share Price Index (CASPI) rose 17.3 points.

Market participants said investors may remain cautious until there is greater clarity over corporate earnings, the broader economic outlook and the sustainability of the market recovery.

As a result, despite a modest increase in turnover, the DSEX continues to struggle to establish a sustained upward trend.

Gold prices fell on Friday, reversing earlier gains, as a stronger dollar and elevated US Treasury yields weighed on the non-yielding metal, leaving it on track for a weekly decline.

Spot gold fell 0.9 percent to $4,140.06 per ounce by 02:33 p.m. EDT, and was down about 3.4 percent for the week so far.

US gold futures settled 1 percent lower at $4,162.30.

The US dollar edged lower, but was headed for a weekly gain, while yields on 10- and 30-year Treasuries hit their highest levels since 2002 on Thursday.

Bullion fell after gaining over 1 percent earlier in the session after data showed US job growth slowed more than expected in September.

US non-farm payrolls rose by 29,000 last month after a downwardly revised increase of 133,000 in August, the Labor Department’s closely watched employment report showed on Friday.

Economists polled by Reuters had forecast payrolls advancing 90,000 after a previously reported 162,000 surge in August.

“Gold bugs are perhaps refusing to get carried away for the time being, knowing that the Fed retains a hawkish bias,” said Han Tan, chief market analyst at Bybit.

“In the months ahead, much of gold’s trajectory will depend on how much the Fed is willing to tolerate potential labor market weakness, with its eyes firmly set on subduing US inflation.”

Bullion has fallen over 20 percent since the US-Israeli war with Iran began in late February, pressured by expectations that conflict-driven inflation could keep interest rates higher for longer.

The latest softer-than-expected inflation data, along with opposition from at least two top policymakers to another rate hike in October, have strengthened investor bets that the US Federal Reserve will keep rates on hold later this month.

Traders currently see about a 22 percent chance of a US rate hike this month, compared to around 70 percent earlier in the week, according to the CME FedWatch Tool.

The government plans to borrow a net Tk30,107 crore from the banking sector through treasury bills and bonds in the October-December quarter of the current fiscal year, according to the latest auction calendar released by Bangladesh Bank.

The planned borrowing is lower than the more than Tk35,000 crore in net borrowing targeted through government securities in the previous July-September quarter.

The increased borrowing comes amid a shortfall in government revenue collection and rising expenditure pressures, including the implementation of the new pay scale for government employees.

According to NBR data, the government collected Tk29,000 crore less than its revenue target during the current fiscal year, with collection also 5.25% lower than in the corresponding period of the previous fiscal year.

The government's expenditure requirements are also expected to rise following the implementation of the new pay structure for public servants. The basic salaries under the new structure will be implemented in three phases – in July this year, December and July next year – while employees will receive all allowances under the new structure from January 2028.

The new pay structure is expected to add Tk1,05,380 crore to government expenditure over three years, including an additional Tk37,372 crore in December 2026.

Economists said the government's increased reliance on bank borrowing could raise interest expenditure and put additional pressure on revenue collection.

Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue, said the borrowing indicated pressure on the government's liquidity position.

"The government is borrowing from the banking sector, which indicates that there is a liquidity shortage in the government's coffers. However, increasing borrowing from banks is not a sustainable method," she said.

"The government will have to repay the money it is borrowing. So, it remains to be seen where the government will get the money to repay these loans," she added.

She said increased government borrowing could eventually affect private-sector credit.

"When demand for loans increases, it may affect the private sector. At present, liquidity in banks is in a good position. However, if borrowing continues to increase gradually, it will have an impact on the banking sector," she said.

Md Ezazul Islam, director general of the Bangladesh Institute of Bank Management (BIBM), said the government needs additional funds to implement the new pay scale.

"The government is borrowing from banks to finance the additional expenditure, which will increase interest payments in the budget. The government will then have to put greater emphasis on revenue collection," he said.

A banker, speaking on condition of anonymity, told The Business Standard the increased government borrowing was unlikely to have a significant immediate impact on private-sector credit as demand for loans remained weak.

He said many commercial banks currently have adequate liquidity. "However, continued government borrowing could affect private-sector lending if demand for credit picks up."

He also said the government would need to reduce its reliance on bank borrowing over time.

The Large Taxpayers Unit (LTU) of the National Board of Revenue (NBR) has asked Islami Bank Bangladesh PLC to settle income-tax disputes involving Tk 4.68 billion, pending with the High Court, through the Alternative Dispute Resolution (ADR) process.

The LTU issued a notice on September 27, asking the bank to submit issue-wise explanations and supporting documents by October 12 to facilitate an early settlement of the disputes.

The disputes involve 14 income years, according to a letter sent to the bank's managing director by Md Mustafizur Rahman, commissioner of taxes at LTU Dhaka.

The largest disputed amount, Tk 1.82 billion, relates to the 2020-21 tax year, followed by Tk 1.22 billion for 2019-20. Together, the two years account for Tk 3.04 billion, or nearly 65 per cent of the total disputed tax.

The disputed tax for 2009-10 stands at Tk 518.2 million, while another Tk 353 million relates to 2018-19. Disputes concerning 2021-22 involve Tk 233 million.

The remaining disputes relate to income years from 2002 to 2009 and 1997, involving varying amounts. The oldest case dates back to the 1997 income year, corresponding to the 1998-99 assessment year.

The LTU's move follows an NBR directive issued on July 6 and instructions given by the finance minister at a meeting on August 13 to prioritise out-of-court settlement of tax cases pending with the High Court through ADR.

The tax authority has asked the bank to provide the necessary explanations and evidence within the stipulated deadline so that the disputes can be resolved under the ADR mechanism.

The initiative is part of the government's broader effort to resolve long-pending tax litigation and recover disputed revenue without waiting for prolonged court proceedings.

The ADR mechanism allows taxpayers and tax authorities to seek settlement of tax disputes through an alternative process, potentially reducing the time and cost involved in litigation. M Kamaluddin Jasim, additional managing director of Islami Bank who is currently serving as acting managing director, said the bank was once among the highest taxpayers in the banking sector and had always been willing to pay its due taxes if its financial condition permitted.

"The bank's current financial condition is now too weak to pay the taxes," he said.

Islami Bank's financial position started deteriorating after 2017. Its profitability has kept declining, while it has had to disburse profits to depositors.

The bank was taken over by S Alam Group in 2017. The controversial conglomerate later extended around 80 per cent of the bank's total loans to its own companies and associated firms, according to available records, violating banking rules and regulations.

Following the fall of the Awami League government in August 2024 after the July mass uprising, the bank was freed from the group's control and began operating under the supervision of Bangladesh Bank.

The bank was also the largest holder of non-performing loans among banks as of June this year. Of the banking sector's total NPLs of around Tk 6.0 trillion, Islami Bank accounted for about Tk 989.14 billion, or 52.15 per cent of its disbursed loans.

Former ADR facilitator Syed Aminul Karim, also a former member of the NBR's income tax policy wing, said the ADR process requires willingness from both tax officials and taxpayers.

"The out-of-the-box settlement process must not be initiated only for spending time," he said.

The ADR law also needs revision so that officials involved in approving settlements are not held personally responsible for potential revenue losses, he added.

The securities regulator aims to raise awareness about scams and digital deceptions on the occasion of World Investor Week 2026.Investing

The Bangladesh Securities and Exchange Commission (BSEC), along with market stakeholders, designed the programme to make investors aware of fraudulent activities by scamsters.

Following the instruction of the International Organisation of Securities Commissions (IOSCO), an international body that brings together the world’s securities and derivatives regulators, the BSEC will observe the World Investor Week from October 4-12.

Finance Minister Amir Khosru Mahmud Chowdhury will inaugurate the opening ceremony titled “Investor Resilience, Digital Deception & Scam Alert” at the BSEC office on October 4.

Special guests of the opening ceremony, to be chaired by BSEC Chairman Masud Khan, will include Tanvir Shahriar Ghani, special assistant to the Prime Minister; Nazma Mobarek, secretary of the financial institutions division of the finance minister; and Mir Nadia Nivin, chairman of the Insurance Development and Regulatory Authority.

Talking to the FE, BSEC spokesperson Md Abul Kalam said the commission continued its effort to warn investors about social media rumours designed to lure them.

Nowadays, AI (artificial intelligence) is also being used to deceive investors, said Mr Kalam, adding that it is not possible to control the AI-based deceptions manually.

The commission would also use AI to detect the sources of deceptive content used by scamsters.

On AI-based monitoring, Mr Kalam said the BSEC was on the way to set up infrastructure to detect scams. “It will take some time to update the software. But the regulator will continue its efforts to make investors aware and take measures against the scamsters.”

In August last year, the securities regulator issued a press release to warn investors against fraud on social media platforms.

According to the findings of the BSEC’s Market Intelligence Department (BMID), the scammers were using AI to send enticing messages to WhatsApp and Telegram IDs to defraud investors.

Some fraudulent groups were offering high returns from stock market investments on social media. They first gained investor trust by giving some profits. That way, they lured investors into making larger investments before blocking all communication channels.

Other events during the observation of the World Investor Week will focus on the role of professional bodies in the capital market, managing digital risks, and smart investing.

The Dhaka and Chittagong stock exchanges, Bangladesh Association of Publicly Listed Companies (BAPLC), Central Depository Bangladesh Ltd. (CDBL), and the associations of the stock brokers and merchant banks will organise the programmes.

Bangladesh Bank (BB) has increased the size of its Pre-Shipment Credit Refinance Scheme to Tk 70 billion from Tk 50 billion to facilitate low-cost financing for exporters.

The central bank issued a circular in this regard on Thursday, directing the chief executives of all scheduled banks to implement the revised arrangements.

Under the new decision, BB will transfer an additional Tk 20 billion from the Export Facilitation Pre-finance Fund (EFPF) to the pre-shipment credit scheme.

Following the reallocation, the size of the EFPF has been reduced to Tk 30 billion from its original Tk 100 billion.

According to the circular, exporters will receive loans under the scheme at an interest rate of up to 6 percent per annum, while participating financial institutions (PFIs) will pay 3 percent interest to Bangladesh Bank for refinancing facilities.

The central bank has also stipulated that any participating financial institution failing to repay the refinanced amount within the prescribed period will have to pay interest at the prevailing bank rate for the actual period of default.

The circular allows participating financial institutions to repay the refinance facility before maturity or make partial repayments.

The latest measures have been issued under Section 45 of the Bank Company Act, 1991, and have come into effect immediately.

All other instructions issued under BRPD Circular No. 08/2022 and BRPD-1 Circular Letter No. 12/2026 will remain unchanged, the circular said.

Remittance inflows to Bangladesh slowed in September, with expatriates sending home $2.77 billion—the lowest monthly amount in 11 months.

The figure was still 3 percent higher than the $2.69 billion received in September last year, according to updated Bangladesh Bank data released on Thursday.

The slowdown marks a break from the record-setting pace seen earlier in the year.

Remittances had exceeded $3 billion a month for six consecutive months through May, before falling below that mark in June.

The latest figures show $2.82 billion came in June, followed by $2.86 billion in July and $2.97 billion in August.

Despite the recent slowdown, remittance growth remained strong in the first quarter of the 2026-27 fiscal year.

Bangladesh received $8.59 billion from July to September, up 13.3 percent from $7.59 billion during the same period a year earlier.

Remittances surged to unprecedented levels in the previous fiscal year, reaching a record $35.59 billion. The country had received $30.33 billion in 2024-25.

The strongest monthly inflow in the recent record-setting run came in March, when expatriates sent $3.75 billion. May followed with $3.44 billion, while December recorded $3.22 billion.

Japan's unemployment rate climbed to 2.5 percent in August from 2.4 percent in July, marking the first deterioration in five months, government data showed Friday.

The number of people with jobs rose by 30,000 from the previous month to a seasonally adjusted 68.34 million, according to the Ministry of Internal Affairs and Communications.

Of those out of work, 810,000 quit their jobs voluntarily, typically in pursuit of better working conditions, up 8.0 percent from July, while 400,000 were let go by their employers, an increase of 5.3 percent.

Meanwhile, the number of people newly looking for work grew 2.2 percent to 460,000, according to the ministry.

Separate data from the Ministry of Health, Labor and Welfare showed the job availability ratio in August stood at 1.18, unchanged from the previous month, meaning there were 118 job opportunities for every 100 job seekers.

By industry, job openings fell from a year earlier in eight of the 11 sectors, led by an 11.1 percent drop in accommodation and restaurant services, followed by a 10.2 percent decline in wholesale and retail, the labor ministry said.

Of the three sectors that posted increases, manufacturing rose 3.9 percent, and information and communications gained 3.3 percent.

Confidence Power and Energy PLC, a power-sector company under Confidence Group, will hold a roadshow on 18 October as it moves ahead with plans to raise capital from the primary market through an initial public offering (IPO) under the book-building method.

According to company sources, the roadshow, aimed at institutional investors, will begin at 7pm at the Radisson Blu Water Garden Hotel in Dhaka. Eligible investors will also be able to participate virtually through a dedicated digital platform.

At the event, the company will present its financial performance, business outlook and planned capital expenditure to potential institutional bidders ahead of the share-price discovery process, according to the company.

Under the book-building system, eligible institutional investors submit bids within the prescribed framework, and the bidding process is used to determine the cut-off price of the shares before the IPO is offered to other investors.

The company has invited a broad range of eligible investors to the roadshow, including merchant banks, portfolio managers, asset management companies, stock dealers, commercial banks, financial institutions, insurance companies, fund managers, alternative investment funds, non-resident investors with registered security custodians, and recognised provident and pension funds.

UCB Investment Limited is acting as the issue manager for the proposed IPO, while Prime Bank Investment PLC is serving as the registrar to the issue.

Confidence Power and Energy was established in 2017 as a concern of Confidence Group. The company currently operates four independent power producer (IPP) plants in Bogura, Rangpur and Chattogram, along with an oil and shipping plant at the Natakhola shoreline.

Its power-generation portfolio comprises 31 MAN and Rolls-Royce engines with a combined generation capacity of 394 megawatts.

To revitalise the economy and steer it towards the long-term trillion-dollar goal, the government has adopted the 3R strategy – Recovery and Stabilisation, Restoration, and Reconstruction for Acceleration.

Aligned with this broader strategy, the Investment Corporation of Bangladesh (ICB) has formulated a phased institutional restructuring and transformation plan.

In the short term, it aims to ease financial pressures and restore operational capacity; in the medium term, boost revenue, diversify investments and expand business capacity; and in the long term, ensure sustainable growth and institutional transformation.

The framework reflects ICB's efforts to strengthen its financial and operational sustainability in line with the broader objectives of the government's 3R strategy.

Five decades of journey

After independence, trading on the Dhaka Stock Exchange resumed on 16 August 1976, following a five-year interruption. Just one and a half months later, on 1 October 1976, the ICB was established as the country rebuilt its economy.

With a nascent capital market, limited investment opportunities and growing demand for long-term industrial finance, mobilising savings for productive investment was a national priority.

Against this backdrop, the government established ICB under Ordinance No 40 of 1976 with four clear mandates: (1) to encourage and broaden the base of investment; (2) to develop the capital market; (3) to mobilise savings; and (4) to provide for matters ancillary thereto.

ICB also supported the supply of shares by providing equity support to industrial and manufacturing enterprises through underwriting and bridge financing.

Five decades on, Bangladesh's economy and capital market have transformed significantly, yet the core objectives behind ICB's establishment remain relevant. ICB's journey thus reflects both the evolution of Bangladesh's investment landscape and its continuing contribution to national economic development.

Contributions to industrialisation and capital market development

ICB's role has extended beyond capital-market development to supporting industrialisation and entrepreneurship.

From its early years, it provided long-term financial support to enterprises through equity participation, debentures, preference shares, underwriting, bridge finance, pre-IPO placement and lease financing for capital machinery – helping address the long-term funding needs of industries when conventional bank financing was often limited.

ICB has invested over Tk8,900 crore directly and Tk27,900 crore indirectly to support industrialization through equity, debentures, preference shares, and lease financing, backing major enterprises like Square, Beximco, ACI, and Titas Gas.

In June 1977, ICB launched the Investors' Scheme, providing margin loans to small investors to purchase DSE-listed shares and ICB Unit Fund certificates. Benefiting around 77,000 investors, the scheme broadened retail participation and helped build a sustained demand base for securities.

Launched Bangladesh's first closed-end mutual fund in 1980 and first open-end fund (ICB Unit Fund) in 1981. The ICB Unit Fund grew from Tk15 crore to Tk5,000 crore, distributing Tk6,563 crore in total dividends (including a historic 1,000% cash dividend in FY 2014–15).

As of April 2026, ICB and its subsidiaries manage 26 of the country's 136 mutual funds, representing 51% (Tk6,801 crore) of the total mutual fund industry market value. Of the 136 mutual funds currently operating in the market, ICB serves as Trustee for 67 funds and Custodian for 59, reflecting its significant role in Bangladesh's mutual fund industry.

Current realities – key challenges

A sound institutional strategy requires a realistic assessment of financial standing, cash flows, asset-liability structures, operational capabilities, risks and regulatory constraints to identify root causes and prioritise reforms.

A review of ICB reveals deep-seated financial, structural and operational bottlenecks. Key challenges identified include:

High-cost borrowings, high interest expenses, unpaid principal and interest liabilities, and critical maturity mismatches between short- and medium-term borrowings and long-term investments.
Severe liquidity constraints, non-performing project loans, substantial long-overdue FDRs with financial institutions, and a shortage of saleable securities.
A substantial decline in portfolio market value relative to acquisition cost, significant provisioning shortfalls, and substantial capital locked in inactive, non-operational or unlisted companies.
Combined, these structural vulnerabilities severely erode ICB's income-generating capacity, financial stability, ability to intervene in the market and scope for business expansion.

Loan burdens

A comparative analysis of ICB's financial position between FY11 and FY26 up to December showed that ICB's liabilities, interest expenses and investment portfolio increased substantially, while its overall income remained largely unchanged.

Over the past one and a half decades, total borrowings increased from Tk2,341 crore to Tk14,043 crore, while annual interest expenses rose from Tk185 crore to Tk1,101 crore.

In contrast, annual gross income declined from Tk668 crore to Tk636 crore. Consequently, interest expenses now stand at 173% of annual income, or approximately 1.73 times total income.

During the same period, the investment portfolio at cost increased from Tk1,504 crore to Tk14,116 crore, while its market value stood at Tk8,609 crore as of December FY26, leaving an unrealised loss of Tk5,507 crore, compared with an unrealised gain of Tk1,519 crore in FY11.

The comparative position indicates a significant imbalance between ICB's liability structure, asset base and income-generating capacity.

The sharp increase in high-cost borrowings and associated interest expenses has placed sustained pressure on liquidity and reduced the financial capacity available for new investment and sustainable income generation.

Integrated revival plan for ICB

To navigate its financial crisis, ICB has proposed an Integrated Financial Restructuring and Institutional Transformation Framework spanning three execution phases. The strategy focuses on debt reduction, capital restructuring, and modernising operations to restore long-term profitability.

1. Short-term plan: As the country's only state-owned financial institution and merchant bank, ICB has formulated the following short-, medium- and long-term measures involving support from the Government and/or Bangladesh Bank.

Proposed Tk10,000 crore in low-cost funding from the government
Securitisation of Jamuna Bridge toll revenues
2. Medium-term plan

Debt-to-equity swap and issuance of preference shares;
Development and utilisation of new and diversified investment products, including Alternative Investment Funds (AIFs), Exchange-Traded Funds (ETFs), Sukuk, corporate bonds, and Systematic Investment Plan (SIP)/Target Investment Plan (TIP) products.
3. Long-term plan

Expansion of the branch and service network, digital transformation, and development of a technology-driven modern ICB;
Strategic partnerships and effective utilisation of ICB's nationwide network;
Introduction of a Real Estate Investment Trust (REIT).
Considering ICB's prevailing financial and institutional circumstances, the proposed plan is not confined to any single intervention. Rather, it constitutes an integrated Financial Restructuring and Institutional Transformation Framework designed for implementation across three distinct phases—short, medium and long term.

The overarching objectives are to reduce the burden of liabilities, restructure the capital base, enhance operational efficiency, create new and sustainable sources of income, and ultimately transform ICB into a stronger, more resilient and modern financial institution.

The current situation is viewed not merely as a financial challenge but also as an opportunity to fundamentally restructure and modernise ICB.

ICB's short-term recovery centres on securing Tk10,000 crore in 10-year, low-cost funding from the Government/Bangladesh Bank to replace existing high-cost borrowings (10.00-11.50%).

Of the funds, 70% will be dedicated to paying off high-interest borrowings to reduce debt pressure, while 30% will be invested in liquid, income-generating securities to boost recurring cash flow.

With the execution of the plan, the expected outcomes include annual savings of Tk450 crore in interest expenses and additional annual income of Tk350 crore through dividends and capital gains.

Total annual value creation is expected to reach Tk800 crore, resulting in a net improvement in ICB's financial standing. The plan would also mitigate severe maturity mismatches between short-term borrowings and long-term investments, ease immediate liquidity constraints, and reduce reliance on expensive credit facilities.

It creates a sustainable pathway to return to profitability by Year 2 and significantly lower total debt over 10 years. The way forward ICB's current financial challenges are the cumulative result of high-cost borrowings, elevated interest expenses, liquidity constraints, asset-liability maturity mismatches, and limitations in its existing investment structure.

Against this backdrop, the proposed Tk10,000 crore long-term, low-cost funding should not be viewed merely as a financing measure to address ICB's immediate financial pressures. Rather, it represents a strategic initiative for ICB's long-term financial restructuring, restoration of institutional capacity, and re-establishment of its developmental role in the capital market. If successfully implemented, the plan could strengthen ICB's financial foundation, capital structure, and investment capacity.

At the same time, it could contribute to increased liquidity and institutional participation in the capital market and create an opportunity for ICB to play a stronger role in reinforcing stability across the broader financial system of Bangladesh.

Jamuna Bridge toll revenue securitisation

To secure long-term, low-cost financing for large-scale infrastructure, a proposal has been developed to issue Sukuk Al-Ijarah backed by the future toll revenues of the Jamuna Bridge.

This initiative mobilises capital market financing while introducing a new Shariah-compliant investment product. Backing the securitisation with government-owned assets guarantees stable cash flows, opening opportunities for domestic and international investors – especially Islamic banks and financial institutions – while deepening Bangladesh's Sukuk market.

Implementation of this initiative will yield substantial benefits for the Government, the financial sector, and ICB. It unlocks long-term domestic funding from future toll revenues while retaining public ownership of the asset and financing new development projects without reliance on bank loans or foreign debt.

Furthermore, it attracts private, institutional, and Shariah-compliant investors, thereby boosting capital market depth and liquidity.

The Sukuk also serves as an eligible asset for banks to meet Statutory Liquidity Requirement (SLR) mandates.

For ICB, it creates recurring fee-based income by establishing the institution as a market leader in issue management, trustee services, SPV administration, and financial advisory. Ultimately, this successful model offers a scalable blueprint for monetising other revenue-generating state assets across the country.

The state-run Investment Corporation of Bangladesh (ICB) has considered expanding trading services across the country to generate additional income to overcome its financial woes.

As per a proposal approved by the ICB board of directors, separate trading wings will open at the branches of the ICB’s corporate sponsors— state-run banks. ICB will execute trades at those wings on behalf of their sponsors in exchange for brokerage commission.

The banks will launch trading in their branches on receiving an approval from the central bank.

Initially, the brokerage services will be introduced at the branches in divisional headquarters.

ICB’s Managing Director Niranjan Chandra Debnath confirms that the proposal has already been approved and that ICB’s corporate sponsors have also accepted it.

ICB’s sponsors, such as Sonali Bank, Janata Bank, and Agrani Bank, conduct securities trading through the ICB Securities Trading Company Ltd. (ISTCL) as the banks do not have DP (depository participatory) licences. The Corporation also executes trades on behalf of other banks, which are not its sponsors, such as Rupali Bank and BASIC Bank. They will also be able to open trading wings.

The ICB managing director said the banks need not inject capital for logistic support to provide trading services at their branches. Only a computer and an employee apart from the infrastructure the bank branches already have would be enough to facilitate trading.

“The regular clients of the banks will get trading services at the branches,” Mr. Debnath said.

The services would also increase the income of the banks through the sale of their own products, including margin loans linked to securities trading.

“The banks will immediately seek permission from the central bank for launching the services,” said Mr. Debnath.

Presently, ICB’s operation outside Dhaka is very limited because of a limited number of branches of its own and its subsidiaries.

The ISTCL has only seven branches across the country while private firm LankaBangla Securities has more than 10 branches in Chittagong city and its outskirts. The operational gap is as wide when ISTCL is compared with other major investment firms.

ICB’s client base will expand significantly if it can provide trading services through the branches of its sponsors.

“Sonali, Janata and Agrani Bank have thousands of clients who will not need to open bank accounts for accessing trading services. It [trading wing] will create a win-win situation for both ICB and its owners,” said the ICB MD.

Sonali, Janata, and Agrani Bank each has more than 20 branches in Chittagong city alone.

If every branch initially provides trading services to at least 20 clients, the number of clients will come to 1,200 in Chittagong city. This number will soar if ICB can operate in all divisional headquarters through bank branches.

The expansion has been designed at a time when the Corporation is in a dire strait. It reported its first-ever annual loss of Tk 1.21 billion in FY25 due to investment losses, higher provisioning, and expensive borrowing. A year earlier, it earned a profit of Tk 326.8 million amid a downward pressure on income since FY22.

Imprudent portfolio management before 2024 was another major reason behind ICB’s stepping into the red.

As part of a broader revival strategy, the Corporation will seek another Tk 100 million from the government and will look to work with the government to help raise public funds through securitization of large and important public infrastructure projects.

Meanwhile, the Corporation on Thursday celebrated its 50th anniversary at a city hotel, attended by Finance Minister Amir Khosru Mahmud Chowdhury and the top brass of the finance ministry and the securities regulator.

At the programme, the finance minister and the chairman of the securities regulator stressed the need for raising the ICB’s operational standards to match those of private financial firms for the sake of its survival and progress.

They advised the Corporation to improve its professionalism and operational efficiency.

A high-level World Bank delegation is visiting Bangladesh to discuss the country's ongoing energy challenges, energy security and infrastructure reforms with the government, as Dhaka faces growing financial pressure from fuel imports and volatile global energy prices.

The four-member delegation, led by Pankaj Gupta, World Bank's regional director of South Asia Infrastructure, arrived in Dhaka today (3 October) and will hold meetings with relevant ministries and agencies until 7 October.

During the visit, the delegation will discuss policy issues surrounding the power and energy sector, financing for fuel imports, energy supply security, renewable energy, sectoral reforms, private investment and institutional capacity building.

Gayle H Martin, operations manager at the World Bank's Dhaka office, informed Md Ahsan Kibria Siddiqui, additional secretary at the Economic Relations Division (ERD), about the visit in a letter.

According to the letter, one of the key objectives of the visit is to discuss strategies to ensure affordable, reliable and sustainable energy supplies in Bangladesh. The delegation will also review the progress of ongoing World Bank-financed energy projects and discuss projects in the pipeline.

The visit comes as Bangladesh faces mounting pressure from volatile global energy prices, foreign exchange constraints and high import bills. The country relies heavily on imported liquefied natural gas (LNG), fuel oil and coal to meet electricity generation and industrial demand.

The World Bank has also noted that Bangladesh's reliance on imported LNG has exposed the country to global fuel-market volatility and pressure on foreign exchange reserves and public finances.

Petrobangla has been under significant financial pressure because of the high cost of LNG imports. Although the government has undertaken fresh gas exploration and production initiatives, managing the cost of imported LNG remains a major challenge.

The Bangladesh Petroleum Corporation (BPC) is facing similar pressure in the petroleum sector.

According to BPC officials, the corporation incurred losses of around Tk22,876 crore between March and August this year as international fuel prices and transportation costs rose. The government has also provided BPC with a Tk4,500 crore loan to meet fuel import costs and maintain uninterrupted supplies.

Bangladesh has already received substantial World Bank support to finance LNG imports. In May this year, the World Bank approved an additional $350 million under its Energy Sector Security Enhancement Project to help Petrobangla secure LNG supplies through more cost-effective financing mechanisms and reduce reliance on expensive spot-market purchases. This followed the original $350 million project approved in June 2025, taking the World Bank's financing under the project to $700 million.

The additional financing is backed by an International Development Association payment guarantee and is intended to support payment security for LNG imports through standby letters of credit and short-term credit lines. The World Bank said the financing would help Bangladesh move towards more predictable, longer-term LNG procurement arrangements.

The delegation is also expected to discuss the progress and future financing of World Bank-supported energy projects, including initiatives related to renewable energy and institutional capacity building.

Bangladesh has been pursuing measures to strengthen energy security by expanding renewable energy, accelerating gas exploration and production, and moving towards market-based energy pricing.

The World Bank has long supported Bangladesh's renewable energy sector through financing and technical assistance. Its projects include the Scaling-up Renewable Energy Project, under which a 75MW grid-connected solar power plant was developed in Sonagazi, Feni, as well as support for rooftop solar and rural renewable energy projects through the Infrastructure Development Company Limited (IDCOL).

The discussions will extend beyond the energy sector to major transport infrastructure and urban development projects. The delegation is expected to discuss increased World Bank investment in Chattogram's Bay Terminal development project and the Dhaka-Chattogram Logistics and Transport Corridor, one of the country's key economic corridors.

The delegation will also review progress on railway infrastructure development and strategic planning, inland water transport infrastructure, sustainable urban development and measures to strengthen cities' resilience to climate change.

Land management reforms, institutional capacity building in local government and various water resources management initiatives will also feature in the discussions.

According to the letter, the World Bank delegation will meet senior officials from the Ministry of Finance; Ministry of Power, Energy and Mineral Resources; Ministry of Road Transport and Bridges; Ministry of Railways; Ministry of Shipping; Ministry of Local Government, Rural Development and Co-operatives; Ministry of Water Resources; IDCOL and other government and private-sector institutions during the visit.

Stocks returned to the red this week, snapping a two-week rally, as a fresh fuel-price shock, persistently high borrowing costs and concerns over corporate earnings prompted investors to retreat to the sidelines.

Market participants said the latest Tk 20-per-litre fuel-price increase emerged as a fresh concern for the equity market, with higher transport, production and distribution costs threatening to squeeze corporate profit margins.

"The market was already under pressure, while the latest fuel-price hike emerged as a major concern for the equity market because of its potential impact on corporate earnings," said a leading stockbroker.

He said the higher fuel costs could translate into slower earnings growth for many listed companies in the coming quarters.

The concern was compounded by Bangladesh Bank's decision to keep its policy rate unchanged at 9.5 per cent until December, reinforcing expectations that borrowing costs would remain elevated for some time.

A prolonged tight monetary stance could keep corporate financing costs high and limit the scope for an investment-led recovery. It could also make fixed-income instruments relatively attractive to risk-averse investors compared with equities.

Most investors were adopting a wait-and-see approach in the absence of strong positive triggers, while persistent domestic economic challenges continued to weigh on risk appetite, said the stockbroker.

"Investors are not seeing enough positive catalysts to take fresh positions aggressively," said another leading broker, adding that investors were reassessing their portfolios and shifting towards stocks with relatively stronger fundamentals or those that had undergone significant corrections.

The market started the week on a downbeat note as investors remained concerned about weaker earnings from June-closing companies and reshuffled their equity exposure accordingly.

The bearish momentum persisted through most of the subsequent sessions as investors remained cautious amid domestic economic challenges and a lack of fresh catalysts. Intermittent bargain hunting around the middle of the week failed to generate enough momentum for a sustained recovery.

Subsequently, of the five trading sessions, four closed lower and only one ended higher.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) lost 46 points, or 0.84 per cent, over the week to close at 5,532, eroding much of the gains accumulated during the previous two weeks.

The DS30 index, comprising blue-chip shares, shed 9 points to 2,103, while the Shariah-based DSES index lost 16 points to 1,100.

Selective large-cap stocks, including Pubali Bank, Walton Hi-Tech Industries, LafargeHolcim Bangladesh, Bank Asia and BAT Bangladesh, together contributed more than 13 points to the weekly decline in the DSEX.

Trading activity also weakened, with total turnover on the DSE falling to Tk 35.31 billion from Tk 39.30 billion in the previous week. Average daily turnover declined 10 per cent to Tk 7.06 billion from Tk 7.86 billion.

The textile sector dominated turnover, accounting for 26.4 per cent of total trading activity. General insurance followed with 18.6 per cent, while pharmaceuticals accounted for 10.9 per cent.

Market breadth remained firmly negative, with 280 issues declining against 89 advancing, while 14 remained unchanged.

Most sectors closed in the red. Among the major sectors, non-bank financial institutions recorded the steepest decline of 2.7 per cent, followed by engineering, food, power, telecom, pharmaceuticals and banking.

Saiham Textile emerged as the week's most-traded stock, with shares worth Tk 1.56 billion changing hands. IPDC Finance, Paramount Textile, Malek Spinning and BRAC Bank followed in turnover.

The Chittagong Stock Exchange (CSE) also ended the week lower. Its All Share Price Index (CASPI) shed 81 points to close at 14,831, while the Selective Categories Index (CSCX) lost 47 points to 9,100.

Amid increasing container flow at the Pangaon Inland Container Terminal (PICT) in Dhaka, the Chittagong Port Authority (CPA) has taken the initiative to expand facilities at the terminal, which has failed to attract exporters and importers for years.

Average monthly container handling at the terminal, which stood at 242 twenty-foot equivalent units (TEUs) in 2024 and 366 TEUs in 2025, rose to around 900 TEUs in the seven months to August this year after the government handed over the terminal to a foreign operator, Switzerland-based logistics firm Medlog.

Against this backdrop, the CPA has invited private firms to develop and operate cargo and container handling facilities on 22 acres of land that remains vacant.

The port authority seeks private investment to manage, develop, supply, maintain and operate the facilities on the vacant land for 22 years, according to a tender published on September 22.

“We have taken the step for proper utilisation of the vacant land,” said CPA Secretary Syed Refayet Hamim.

The Pangaon ICT was built on the bank of the Buriganga River in Keraniganj in 2013 jointly by the CPA and the Bangladesh Inland Water Transport Authority (BIWTA) at a cost of Tk 154 crore. It was intended to ease pressure on the Dhaka-Chattogram highway and railway corridors caused by cargo movement.

The CPA took a lease of 48.24 acres of land from the BIWTA to develop the terminal.

The current facility, under the management of Switzerland-based logistics firm Medlog SA, covers 26 acres. There are 22 acres of vacant land beyond the current facility, according to CPA Secretary Refayet.

The terminal had struggled to attract businesses transporting containerised cargo to and from Chattogram Port because of high inland water transport costs, lengthy customs clearance and other obstacles.

The situation has improved since Medlog Bangladesh Private Ltd, a concern of Medlog SA, started operating the terminal on January 17 this year.

As per the tender, interested firms, including their parent or holding companies, must have at least five years of experience in loading and discharging containers to or from vessels, according to the tender document.

They must also have experience in handling, storing and delivering containers and containerised cargo using their own equipment and manpower, with an annual handling capacity of at least 70,000 twenty-foot equivalent units (TEUs) at any inland river terminal or river port at home or abroad.

ATM Anisul Millat, managing director of Medlog Bangladesh, said container transport through the terminal had already exceeded the total annual throughput of 4,400 TEUs by June this year. He said his firm was interested in participating in the bidding to manage and develop the 22 acres of vacant land at the terminal.

Bangladesh Bank’s first-ever quarterly Monetary Policy Statement is an important institutional change. Moving from half-yearly to quarterly reviews should make monetary policy more responsive to rapidly changing domestic and global conditions. But greater frequency will matter little unless policy becomes more effective in addressing Bangladesh’s difficult combination of persistent inflation, weak investment and financial-sector stress.

The decision to keep the repo rate unchanged at 9.5 percent is understandable. Headline inflation declined to 8.26 percent in August, but non-food inflation remained stubbornly high at 9.32 percent. Higher fuel prices and the possible implementation of the new pay scale create additional inflationary risks. Another rate cut at this stage could therefore have been premature.

The larger concern is monetary transmission. Private-sector credit growth was only 4.75 percent in August despite substantial liquidity in the banking system. Bangladesh Bank acknowledges that policy-rate changes are transmitted relatively quickly to market rates but not effectively to private credit and the real economy. This raises a fundamental question: how much can interest-rate policy achieve when the banking channel itself is severely impaired?

Here, banking reform deserved much greater prominence in the MPS. The statement recognises the problem: non-performing loans have reached 32.78 percent, capital erosion is significant, and liquidity is unevenly distributed across banks. Yet banking reform appears largely as one among several supporting conditions rather than as a central component of monetary-policy effectiveness. That understates the seriousness of the problem. Bangladesh’s banking sector accounts for around 90 percent of financial-sector assets, while weak governance, regulatory capture and related-party lending remain major vulnerabilities.

The policy challenge therefore extends beyond keeping rates high or cutting them. Bad loans must be recognised and resolved, weak banks must be restructured, connected lending must be disciplined, and bank supervision must be made credible. Fiscal policy must also reduce excessive dependence on bank borrowing, while exchange-rate flexibility and supply-side measures should complement monetary policy.

Quarterly reviews are a useful reform. But institutional frequency cannot substitute for institutional effectiveness. Unless banking reform becomes central to the monetary-policy framework, Bangladesh Bank risks adjusting the price of credit while the machinery that allocates credit remains fundamentally impaired.

The writer is a professor of economics at Dhaka University and the executive director of SANEM.

Turkish Airlines is seeking to add three weekly flights on its Dhaka-Istanbul route, raising its services to 10 a week from the current seven, as Bangladesh and Turkey look to strengthen air connectivity.

Civil Aviation and Tourism Minister M Rashiduzzaman Millat welcomed the airline’s interest during a meeting with a Turkish delegation at the Secretariat yesterday, saying there would be greater scope for additional flights once the third terminal of Hazrat Shahjalal International Airport becomes operational.

Bangladesh has a growing international passenger market, with more than 1 crore passengers travelling each year, according to industry insiders.

The minister urged Turkish Airlines to consider launching direct flights from Shah Amanat International Airport in Chattogram and Osmani International Airport in Sylhet, citing demand for international travel among people in the two regions, including a large number of expatriate Bangladeshis.

He said additional services from the two airports would make international travel more convenient for passengers and further strengthen connectivity between Bangladesh and Turkey.

Turkish Ambassador to Bangladesh Ramis Şen led the delegation. Bilal Belyurt, commercial counsellor at the Turkish Embassy, and İslam Güre, country manager of Turkish Airlines in Bangladesh, were also present at the meeting.

Turkish Airlines began operations in Bangladesh in December 2010 with four weekly flights between Dhaka and Istanbul via Karachi. It switched to direct Dhaka-Istanbul services on March 25, 2012, initially operating four flights a week.

During the meeting, the two sides discussed ways to strengthen cooperation in aviation, tourism, investment and people-to-people connectivity.

Millat said Bangladesh and Turkey have longstanding friendly relations, with considerable scope for expanding cooperation in tourism, culture and connectivity.

Tourism investment also featured in the discussions.

The minister said the government has taken an initiative to develop 1,498 tourism spots across Bangladesh under public-private partnerships (PPPs) and is encouraging foreign investors to participate in developing infrastructure, management and services at the destinations.

He invited Turkish investors to invest in Bangladesh’s tourism sector, noting that Turkey’s experience in tourism development, hospitality and related industries could contribute to the sector’s growth in Bangladesh.

The two sides also discussed easing visa procedures for Bangladeshi citizens.

Millat said easier visa facilities would help boost travel, business, tourism and people-to-people exchanges between the two countries, calling for effective initiatives by both sides in this regard.

Both sides expressed interest in further strengthening cooperation in aviation, tourism and investment, as well as expanding exchanges between the people of the two countries.

The dollar stood near this year's high versus the euro on Wednesday and was poised for the largest monthly rise against it in 14 months, powered by US growth and rising US interest rates in contrast to the energy and debt worries swirling in Europe.

On Tuesday the euro dipped to its lowest since May 2025, at $1.1312, and it traded nearby at $1.1339 in Asia on Wednesday. The euro is also testing support around 178 yen.

The dollar is up nearly 2.5 percent on the euro in September and it is set to notch a third straight quarterly rise.

The stronger greenback has also pushed the Australian dollar below 70 cents for the first time since early August, with the Aussie slipping to a nine-week low of $0.6959 after inflation data came in a fraction under forecasts.

"The US economy is running hot, Europe is losing the global AI race, and energy supplies and French politics remain big concerns for the euro," said Brent Donnelly, president of foreign exchange trading at analytics firm Spectra Markets.

Earlier this month benchmark European gas prices spiked to their highest since 2022.

French markets are under pressure from debt and political gridlock, ahead of next year's presidential election, and the spread with German yields has blown beyond 115 basis points to its widest since 2012.

A skew in options prices has tipped sharply in recent sessions to show traders favour buying protection against further euro falls — though Donnelly says the dollar probably needs strong US data to make headway from here.

The dollar also hit a 16-1/2-month top on the Swiss franc on Tuesday at 0.8358 francs. The franc has suffered, in part, because investors have gone looking for low-yielding alternatives to yen to sell in search of carry elsewhere.

The yen has fallen out of favour as a short against the dollar following US-Japan yen buying in July and August, which has been followed by warnings not to test their resolve, as well as a pickup in the pace of Japanese rate hikes.

The dollar has dropped 2 percent on the yen in September and almost 3.8 percent over the third quarter, touching a low of almost two weeks at 156.38 in Asia trade.

The Fed's preferred inflation yardstick, US core PCE, is due out later on Wednesday though the market is focused on Friday's US jobs report which, if strong, could reinforce expectations that US interest rates are on the rise.

Some of those expectations took a hit overnight when influential New York Fed President John Williams said there is "no need for urgency" in raising rates. Two-year Treasury yields fell about 3.5 basis points and Fed funds futures pricing for a rate hike next month dialled back to 50 percent from 71 percent.

The New Zealand dollar, which hit its lowest since last November on Tuesday, was pinned at $0.5645.

Sterling touched a three-month trough on Tuesday and last sat nearby at $1.3230. The yuan headed for its seventh straight quarterly gain on the dollar in its final session before China's October 1-7 holidays.

Market experts, regulators, academics and corporate leaders have called for a phased and practical implementation of the proposed BSEC Corporate Governance Rules 2026, saying board oversight must remain realistic while strengthening investor confidence in Bangladesh's capital market.

They made the call at a roundtable titled "Strengthening Corporate Governance in Bangladesh", organised by SMAC Advisory Services Limited at a city hotel on Tuesday. Bangladesh Securities and Exchange Commission (BSEC) Commissioner Hossain Sadat attended as the guest of honour and discussed the draft Corporate Governance Framework 2026.

Opening the session, Snehasish Barua, managing director of SMAC Advisory Services, highlighted the importance of independent directors, accountability and transparency in creating long-term corporate value.
Presenting a comparison of regional governance frameworks, Zareen Mahmud Hosein, director of SMAC Advisory, recommended a phased rollout, clearer definitions and valuation guidelines for related-party transactions (RPTs), proportionate risk oversight, and a roadmap for ESG reporting aligned with IFRS S1 and S2 standards.

Panellists also highlighted the need to tailor governance requirements to the realities of individual companies.

Corporate governance expert Lopa Rahman said leadership effectiveness should be assessed against clearly defined expectations, while Melita Mehjabeen, chairman of National Bank PLC, stressed that boards need to balance oversight responsibilities with each company's specific structure.

Syed A Mamun, council member of ICMAB, called for a flexible framework that recognises differences among listed companies without weakening governance standards. Nurul Alam, president of IIAB, emphasised directors' professional competence and understanding of business operations.

On compliance and related-party transactions, Afseen Baten, additional director at ICAB, called for valuation-based assessments to strengthen audit committee oversight.

In his closing remarks, BSEC Commissioner Hossain Sadat said the commission would carefully consider stakeholders' feedback while formulating an investment-friendly governance framework within this year.

He said protecting investor rights and ensuring transparency would remain priorities despite resource constraints, as these are essential to attracting both domestic and foreign investment.

Bangladesh Bank has held its policy rate steady at 9.5 percent for the second quarter of the fiscal year, keeping all other monetary policy targets unchanged from the previous statement.

The central bank unveiled the policy for October-December on Wednesday, with Deputy Governor Habibur Rahman setting out the targets at a media briefing at 3pm.

The rate has stayed unchanged since July, when the central bank trimmed it by 50 basis points from 10 percent—the level set in its last policy statement, in June.

Habibur said the current level remained relatively high compared with those of Bangladesh’s peer countries.

He described the current monetary policy stance as somewhat contractionary, or tight, given the level of the rate.

Why Three Months

Bangladesh Bank said when announcing its monetary policy in June that it would move to announcing the policy every three months.

Explaining the change, Habibur said the three-month cycle is common internationally, while neighbouring India reviews its policy every two months.

Bangladesh cannot yet follow a shorter cycle because sufficient economic data are not available, the deputy governor added.

Import-export data are updated every month and become available soon after the end of each month. But data for other economic indicators are not available as quickly.

Habibur pointed to Bangladesh Bureau of Statistics data, saying figures for some indicators, particularly industrial production, come much later.

Inflation Remains A Concern

The policy rate remains somewhat higher than the inflation rate, meaning the real interest rate observed in the market is still positive, the official said.

He described this as an indicator of the “tight or contractionary” monetary policy stance.

The deputy governor flagged fresh uncertainty over the inflation outlook, warning that the recently announced pay scale hike for government employees could add to demand-side pressures and put the ongoing disinflation trend at risk.

“There’s some hesitation on our part about how far that disinflation path can hold going forward,” he said.

That uncertainty, he added, was behind the decision to keep the policy rate unchanged.

The monetary policy statement is usually delivered by the Bangladesh Bank governor, but he was absent from Wednesday’s briefing.

Habibur attributed this to the governor being occupied with official government duties.

China has vowed a "resolute response" to safeguard its industries if the European Union goes ahead with restrictions against Chinese companies or products, according to its commerce ministry.

The ministry was referring to a reported joint document drafted by some EU member states pushing for a tool to tackle unfair trade and take more forceful measures against China.

The tool amounts to a "typical protectionist and unilateralist measure", and will disrupt stability of China-EU trade, the ministry said in a statement late on Tuesday.

"If the European side engages in talks and consultations with China, while increasingly pressuring China, it will seriously undermine mutual trust, interfere with the overall process of consultation," the ministry cautioned.

China could respond with a "strong policy toolbox" that includes anti-discrimination probes, security investigations into industrial and supply chains and could also look into the impact of foreign subsidies, state-backed newspaper Global Times reported on Wednesday, citing an unnamed Chinese observer as saying.

Global Times linked the warning to an article by Rhodium Group's senior adviser on Europe-China ties, Noah Barkin, who said Germany and France were finalising a joint paper this week to call on the European Commission to fast-track development of an instrument that mirrors the United States' Section 301 unfair trade practices provision, to deter China in the EU market.