The exchange rate applied by the sole ground handler Biman Bangladesh Airlines to export cargo has remained significantly higher than prevailing bank rates for months, squeezing the margins of local freight forwarders while giving foreign airlines a financial advantage in Bangladesh's air cargo market, industry insiders say.

The gap stood at Tk2.83 per dollar in July, and although it has narrowed recently, Biman's rate was still Tk1.15 higher than Sonali Bank's TT Clean rate on 8 September, according to the Bangladesh Freight Forwarders Association (Baffa).

Biman has set its exchange rate at Tk123.65 per dollar for export cargo from 8 September, while Sonali Bank's TT Clean rate was Tk122.50 on the same day, Baffa said.

The association said the higher rate directly increases costs for freight forwarders, while foreign airlines – which handle around 85% of Bangladesh's air cargo exports – are the main beneficiaries of the higher rate.

Baffa President Md Ariful Hasan raised the issue in a letter to Biman's managing director on 13 September, urging the national flag carrier to review the exchange rate based on market conditions and prevailing bank rates.

The association said the higher rate was causing direct financial losses to freight-forwarding companies and increasing the overall cost of Bangladesh's exports.

There are mainly two methods of paying freight for export shipments – freight prepaid and freight collect, according to sector insiders. Under the prepaid method, the exporter pays the freight in advance. Under the freight collect method, the importer pays the freight after the goods reach their destination.

"About 10% of export shipments are transported under the prepaid method, while the remaining 90% use the freight collect method. As a result, most of the problems arising from exchange-rate differences are related to freight collect shipments," said freight forwarder Nasir Ahmed.

Under the prepaid method, the exporter bears the freight cost for transporting the goods to their destination. Under the freight collect method, the foreign importer pays the freight at the destination.

In the latter case, freight forwarders incur losses when there is an exchange-rate difference between collecting the freight from the foreign party in US dollars and paying the local airline in taka.

The sector insiders said Biman itself handles around 10% of total export cargo, meaning foreign carriers handling the bulk of Bangladesh's air cargo stand to gain more from the higher exchange rate.

Currently, around 38 foreign airlines operate from Dhaka airport, with carriers including Emirates, Qatar Airways, Singapore Airlines, Thai Airways, Saudia, Malaysia Airlines and Ethiopian Airlines among those handling significant cargo volumes.

If cargo volumes rise significantly, airlines also operate dedicated cargo flights. Around 400-450 tonnes of export cargo are currently handled daily, according to the International Air Express Association of Bangladesh.

Daily import cargo generally stands at around 400 tonnes, although the volume can fall to around 300 tonnes on some days, according to Dhaka Customs House.

Tk200cr annual impact

The financial impact becomes significant when the exchange-rate difference is applied across the country's export cargo volume.

Around 2,00,148 tonnes of RMG export cargo was handled last year, with a total freight value of over $1 billion, according to industry insiders.

At a Tk2-per-dollar exchange-rate difference, the estimated additional cost would amount to roughly Tk200 crore a year.

Freight forwarders say the pressure is particularly severe because the sector operates on thin margins.

"For example, if a freight forwarder handles $1,00,000 worth of air cargo, the business is so competitive that there is little room for a large profit. Even if the profit margin is 5%, the profit would be only $5,000," Nasir said.

Freight forwarder Nasir Ahmed said a bank recently offered the dollar at around Tk121.75, while Biman was applying a rate of around Tk123.65 for air cargo, creating a gap of nearly Tk1.90 per dollar.

"If the exchange-rate difference alone causes a loss of around $2,000, a large portion of the profit is wiped out. After TDS and other airport and handling charges, the actual margin becomes even smaller," he added.

Industry insiders say freight forwarders cannot simply pass the additional cost on to exporters because of intense competition in the market.

Local forwarders fear losing ground

There are around 1,400 freight-forwarding companies in Bangladesh, although only about half regularly handle shipments, according to industry insiders.

Nasir said local freight-forwarding and logistics companies have been gradually building their capacity and infrastructure, but continued losses caused by exchange-rate differences could weaken their competitiveness.

He warned that continued pressure on local freight forwarders could eventually shrink their market share and create greater opportunities for foreign companies to dominate the sector.

BAFFA seeks market-based rate

In a letter to Biman on 2 July, Baffa urged Biman to revise its dollar exchange rate based on prevailing market rates.

Responding to the allegations, Biman spokesperson Mohiuddin Ahmed said the airline does not arbitrarily determine its exchange rate.

"Biman does not set any rate randomly. A rate determined by the government is forwarded to Biman. I have asked our finance department about the matter, and they have been discussing the issue for some time," he said.

Bangla QR-based person-to-person transactions will be introduced from November, allowing customers to transfer funds interoperably by scanning another customer's Bangla QR code or uploading an image of the code through the relevant mobile app, according to Bangladesh Bank Executive Director and Spokesperson Arief Hossain Khan.

Addressing a press briefing at the central bank headquarters in Dhaka's Motijheel today (30 September), he said, "Bangla QR is a government initiative. Some think their business will decline with the expansion of Bangla QR. In reality, they are living in a fool's paradise. Those who do not remain with Bangla QR will not have an existence."

He added that mobile financial service (MFS) providers fear their business will decline because of banks' QR codes, but "both MFS providers and banks have their own limits".

Currently, he said, customers of banks and MFS providers can use mobile apps to scan Bangla QR codes and pay for purchases at nearly 3.9 million merchants nationwide.

According to Bangladesh Bank (BB) data, an average of around 1,00,000 Bangla QR payments were made daily in June, with the average transaction value exceeding Tk28 crore.

The number has now risen to around 3,50,000 payments a day, with an average transaction value of approximately Tk143.54 crore.

This shows that within just 90 days from 1 July, the average number of Bangla QR transactions increased about three-and-a-half times, while their total value rose nearly fivefold.

To expand the use of Bangla QR, Bangladesh Bank replaced all proprietary QR codes with Bangla QR from 1 July as part of regulatory simplification measures. It has also taken several steps concerning the functionality, promotion, and pricing of Bangla QR.

A working committee comprising representatives of banks and MFS providers, along with a steering committee headed by the Bangladesh Bank governor and comprising representatives of various ministries and divisions, are working on the system.

The committees are identifying necessary policy and strategic measures for the Bangla QR system and determining the required actions.

Merchants to receive payments instantly

From 1 October, payments made through all Bangla QR codes will be deposited instantly into the respective merchants' accounts.

As a result, merchants will no longer have to wait to receive payment after customers pay for goods or services.

Bangladesh Bank expects the move to encourage greater adoption of Bangla QR among merchants.

Transaction costs to fall

From tomorrow (1 October), the minimum 1% merchant discount rate imposed by acquiring institutions on Bangla QR payments will be scrapped.

At the same time, the interchange reimbursement fee for issuing institutions will be set at zero.

As a result, the cost of Bangla QR payments at the merchant level is expected to fall significantly. Banks and MFS providers will be able to offer Bangla QR payment services to merchants either free of charge or at a low cost.

Incentives for transactions up to Tk2,000

A new incentive scheme will also be introduced from tomorrow to encourage the use of Bangla QR.

Bangladesh Bank will provide incentives for each Bangla QR transaction processed through the National Payment Switch Bangladesh platform at all merchant points, for transactions of up to Tk2,000.

Under the scheme, acquiring institutions will receive an incentive equivalent to 0.10% of the transaction value, while issuing institutions will receive 0.20%.

Education, healthcare, transport sectors in focus

Bangladesh Bank is also placing special emphasis on expanding Bangla QR use in the education, healthcare, and transport sectors, said spokesperson Arief.

Giving an example from the healthcare sector, he said patients often struggle to get change when buying outpatient department tickets. For instance, someone paying Tk10 with a Tk50 note may not receive change, increasing queue times.

With Bangla QR, patients would be able to scan a code with their mobile phones and make the payment directly, he said.

There are also plans to introduce Bangla QR payments in the education sector, including for school fees and small purchases such as food at school canteens, stationery, pencils, erasers, sharpeners, and geometry boxes, said the BB official.

The education ministry has already issued instructions regarding making payments of private school fees cashless, he said, adding that initiatives are being taken to facilitate such payments through Bangla QR.

Bangla QR could also be used in the transport sector, Arief said.

Referring to long queues at toll plazas on roads, including the Padma Bridge, he said QR-based toll payments could help reduce waiting times.

Such a system would eliminate the need for cash and make toll collection faster, he added.

Looming cost shocks and emerging fiscal burdens threaten to reverse Bangladesh's recent gains in inflation control, prompting the central bank to keep its policy rate unchanged at 9.5% despite headline inflation cooling to a 10-month low of 8.26% in August 2026.

According to Bangladesh Bank's maiden Quarterly Monetary Policy Statement (QMPS) for October-December 2026, announced today (30 September), the primary catalysts behind persistent price risks are the recent upward adjustment in administered fuel prices and the partial implementation of the new national pay scale.
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"The recent increase in administered fuel prices is likely to raise transport and production costs, while partial implementation of the national pay scale could add further inflationary and fiscal pressures," the central bank noted in its policy statement.

A Tk20 per litre price hike across all fuel oils earlier this month is already rippling through the real economy, driving up freight and energy expenses for manufacturers, agricultural producers, and logistics networks.

While food inflation moderated to 7.02% in August, non-food inflation remained elevated at 9.32%, underscoring deep-seated price pressures likely to intensify as higher transportation tariffs take full effect.

The Standing Lending Facility rate has also been retained at 11% and the Standing Deposit Facility rate at 7.5%, Deputy Governor Habibur Rahman said while announcing the quarterly monetary policy at the central bank headquarters today (30 September).

The decision was taken at the 14th meeting of the Monetary Policy Committee on 23 September.

Deputy Governor Habibur Rahman speaks while announcing the quarterly monetary policy at Bangladesh Bank headquarters on Wednesday (30 September 2026). Photo: TBS
Deputy Governor Habibur Rahman speaks while announcing the quarterly monetary policy at Bangladesh Bank headquarters on Wednesday (30 September 2026). Photo: TBS

The central bank said global fuel price increases, disruptions in the Strait of Hormuz, upward adjustments in controlled domestic fuel prices, and the likely implementation of a new pay scale could add to inflationary pressure.

It warned that easing monetary policy prematurely could raise inflation expectations and delay the return of inflation to the target range.

Growth remains under pressure

The monetary policy statement said economic activity remains subdued, with real GDP growth estimated at 4.14% in FY2025-26. Growth in the third quarter of the fiscal year was estimated at 2.2%, while industrial production contracted 0.28% during the period.

High financing costs, energy shortages, infrastructure constraints, and uncertainty over domestic and external demand continue to weigh on economic activity, it said.

The new monetary framework acknowledges that a Tk 60,000 crore stimulus package - which includes Tk 20,000 crore dedicated to reopening closed factories - is expected to support economic recovery.

However, the central bank cautioned that "monetary policy alone cannot address the supply-side constraints weighing on growth", signalling that rate cuts alone will not resolve structural bottlenecks.

Private-sector credit growth remains weak

Private-sector credit growth stood at just 4.75% in August 2026, reflecting weak investment and lending demand, borrower risks, and weaknesses in the banking sector.

Despite a 50-basis-point policy rate reduction in early August, credit transmission to the real economy "remains weak".

While financial conditions have eased within interbank markets and government securities, that liquidity has failed to reach businesses.

The share of non-performing loans (NPLs) in the banking sector also rose to 32.78% in June 2026.

The central bank explicitly linked this high NPL ratio to weak credit flow and elevated borrower risk, stressing the urgent need for "bank restructuring, stronger governance, capital restoration, and improved credit discipline."

Remittances provide external-sector support

The balance of payments recorded a surplus of $6.6 billion in FY26. However, the overall balance turned negative in the first two months of FY2026-27, mainly due to a deficit in the financial account.

Remittance inflows rose 18.90% during the period, providing some support to the external sector. The relatively stable exchange rate also helped contain imported inflation.

Bangladesh Bank expects a gradual rather than rapid economic recovery in the coming fiscal year. The World Bank projects 4.6% growth for FY2026-27, while the International Monetary Fund has lowered its forecast to 3.5% from 4.3%.

The central bank expects inflation to gradually ease next fiscal year, although the pace of the decline remains uncertain.

Seven listed banks have been excluded from the CSE50 benchmark index of the Chittagong Stock Exchange (CSE) following its regular biannual review and rebalancing.

The changes will take effect on 11 October 2026, according to a press release issued by the port city bourse.

The CSE dropped Al-Arafah Islami Bank, IFIC Bank, Islami Bank, Mercantile Bank, ONE Bank, The Premier Bank and United Commercial Bank from the CSE50 index following a comprehensive review of the performance of listed companies.
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To replace the outgoing entities, seven new companies across diverse sectors were inducted into the index. The newly included scrips are BSRM Steels, Berger Paints, Dhaka Bank, Fine Foods, Heidelberg Materials, Taufika Foods and Lovello, and The Ibn Sina Pharmaceuticals.

Reviewed twice a year based on six-month performance data ending in June and December, the CSE50 index is designed to serve as an official benchmark for the country's capital market. It measures the performance of 50 leading and liquid stocks across various sectors, excluding corporate bonds, mutual funds, and 'Z' category companies.

Following the latest revision, the constituent companies of the CSE50 represent 76.40% of the total market capitalization and 72.57% of the free-float market capitalisation of all stocks listed on the Chittagong bourse as of 30 June 2026. Furthermore, these 50 scrips accounted for 53.72% of the average daily turnover recorded on the exchange over the six months ending 30 June 2026.

The remaining 50 companies comprising the revised index include heavyweights such as Square Pharmaceuticals, Grameenphone, British American Tobacco Bangladesh, Robi Axiata, Marico Bangladesh, LafargeHolcim Bangladesh, BSRM Ltd, Olympic Industries, and Walton Hi-Tech Industries, alongside surviving banking institutions like BRAC Bank, City Bank, Dutch-Bangla Bank, Eastern Bank, Prime Bank, and Pubali Bank.

Oil prices rose on Wednesday after US President Donald Trump denied he would be willing to ease sanctions on Iran while Qatar pushed for peace talks, after falling in the previous session on a recovery in crude supply from the Middle East.

The Brent futures November contract, which is expiring on Wednesday, rose 71 cents, or 0.69 percent, to $103.30 a barrel by 0408 GMT.

The more active December contract rose 35 cents to $96.51.

US West Texas Intermediate crude gained 43 cents, or 0.48 percent, to $89.81.

Brent is headed for a monthly gain of around 14 percent, its biggest climb since July, while WTI is on track for a 4 percent rise after having breached $106 for the first time since May.

The spread between the two benchmarks this month also expanded to its widest in four months as traders watched potential plans by the US to restrict diesel exports, which could create an oversupply in the domestic market and lead US refiners to process less crude.

US President Donald Trump is considering allowing sales of red-dyed diesel, instead of an export ban, to offer some price relief to consumers as the November midterm elections loom.

"Continued uncertainty over sanctions relief and negotiations is keeping a geopolitical risk premium embedded in prices," said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.

"Improving supplies could cap further gains, but renewed disruption or an escalation in tensions could trigger another rally," she added.

Qatar said on Tuesday it hopes that shuttle diplomacy between Iran and the US can lead to a breakthrough.

However, Trump denied an Axios report that cited US officials as saying he was willing to give Iran sanctions relief and release frozen Iranian funds in return for "concrete" steps by Tehran on its nuclear programme.

On Tuesday Saudi Arabia resumed oil tanker loadings from its Red Sea port of Yanbu after restarting operations on the East-West Pipeline.

Crude oil exports from Middle East producers have rebounded in September to 16.328 million barrels per day, the highest since the US-Israeli war with Iran started in late February.

"With flows through the Saudi East-West pipeline restored, regional exports are now just 11 percent below pre-war levels — a remarkable recovery for a region still at war," J.P. Morgan research said in a note.

Over the past five days, the 10-day average for total oil exports has held at 20.5 million barrels per day, or 89 percent of 2025 levels, J.P. Morgan estimated.

In the US, crude oil and gasoline inventories rose, while distillate stocks fell last week, market sources said on Tuesday, citing data from the American Petroleum Institute.

Official inventory data from the US Energy Information Administration is due at 10:30 a.m. EDT (1430 GMT).

Analysts polled by Reuters expect crude and product inventories to have fallen.

The Federal Trade Commission is conducting an industry-wide probe into Anthropic, OpenAI and other AI labs to uncover the potential dangers their technology poses to consumers, a senior FTC official told Reuters on Wednesday.

The probe is the first official US enforcement action that delves into rogue AI agents, following a surge in incidents first reported in July that have stoked fears among the public that uncontrolled AI could one day harm humans.

The FTC plans to issue formal demands for information and compel testimony from executives at top AI developers, including Anthropic, OpenAI and the research group METR, the official said.
Anthropic, OpenAI and METR have used METR to conduct independent investigations into security incidents involving their agentic AI technology.

Anthropic, OpenAI and METR did not immediately respond to requests for comment from Reuters. The New York Post first reported the news.

FTC Chairman Andrew Ferguson had concerns about the companies before AI agents developed by OpenAI hacked the open-source platform Hugging Face, the official said.

But the incident in which OpenAI agents had probed the AI coding hub for vulnerabilities before carrying out a large-scale attack increased urgency around the issue, the official said.

Ferguson suggested last week in an interview with Reuters that developers who instruct agents in cybersecurity tests that result in hacks should be liable for any harm they cause. The US should look to existing laws before seeking to pass new ones regulating AI, Ferguson said at the Reuters Momentum AI event in Austin.

The FTC has broad authority to sue companies over unfair or deceptive practices, and has used that authority in the past to take action against companies for failing to take reasonable measures to secure consumers' data.

US President Donald Trump met with top AI executives on Tuesday, where the companies agreed to establish voluntary standards. Trump has repeatedly called fears about AI a hoax as he seeks to prioritise US dominance in the technology over regulation.

At the same time, he has also said the government can use existing laws against AI companies for any harm they may cause.

Anthropic said agentic AI technology raises significant and unpredictable legal risks in the prospectus for its stock market debut, Reuters exclusively reported on Tuesday.

The government has kept the retail prices of diesel, octane, petrol and kerosene unchanged for October 2026.

According to a notification issued by the Bangladesh Energy Regulatory Commission (BERC) today (30 September), the existing prices will remain effective throughout October.

Under the latest rates, diesel will sell at Tk135 per litre, octane at Tk165, petrol at Tk160 and kerosene at Tk155 per litre.
The prices were fixed by the Energy and Mineral Resources Division through a notification issued on 20 September, and the same rates have now been retained for October with the approval of the competent authorities.

Advanced Chemical Industries (ACI) has approved an additional equity investment of Tk 600 million in ACI CO-RO Bangladesh, its existing joint venture with Danish beverage maker CO-RO, to expand its presence in the beverage market.

The ACI board also approved the formation of a new joint venture with Japan-based Ichinen Holdings Co Ltd, marking the company's planned expansion into motorcycle financing, skilled manpower placement and the export of agricultural products to Japan.

The decisions, taken at a board meeting on Monday, were disclosed through separate regulatory filings on Tuesday.

ACI CO-RO was established in 2019 as a greenfield joint venture to manufacture fruit-based beverages in Bangladesh under CO-RO's brands and in conformity with CO-RO's quality standards.

The joint venture inaugurated its first state-of-the-art fruit drink factory in Narayanganj in February 2024 with a $20 million investment. The additional investment is aimed at supporting the venture's expansion as consumer demand for convenient and quality drinks evolves, according to the company.

CO-RO, founded in Denmark in 1942 by brothers Flemming and Jep Petersen, operates across the Middle East, Asia, Europe and Africa. Its brands, including Sunquick, Suntop, Sun Lolly and Suncola, are sold in more than 80 countries, according to the company.

A new venture to branch into new markets

ACI is also set to form a new joint-venture company with Japan-based Ichinen Holdings, named ACI-ICHINEN Bangladesh Ltd, to branch into motorcycle financing, skilled manpower placement and agricultural exports to Japan.

The partnership brings together ACI's established presence in Bangladesh with the diversified business expertise of Ichinen Holdings, a Japanese corporate group headquartered in Osaka.

The proposed company will have an authorised capital of Tk 500 million and paid-up capital of Tk 150 million. ACI will hold a 60 per cent stake in the joint venture, subject to approval from the relevant authorities.

The plan is to purchase Yamaha motorcycles from ACI Motors and sell them to retailers with financing in six to twenty-four monthly instalments. The initiative is expected to create a financing channel for retailers purchasing Yamaha motorcycles.

The joint venture will also facilitate the migration of skilled Bangladeshi workers to Japan, while another part of the business will focus on cultivating sweet potatoes in Bangladesh for export to the Japanese market.

Ichinen Holdings operates across several sectors, including automotive leasing, chemicals, parking, machine tools and synthetic resin products. Its automotive-related operations include vehicle leasing, rental services, disposal of leased vehicles and outsourced vehicle maintenance.

The Japanese group also manufactures and sells chemicals for automobiles, machinery and industrial applications, while its other businesses include parking operations and the sale of machine tools, automotive maintenance equipment, air-conditioning tools and measuring instruments.

Ichinen also has operations related to agricultural products, property leasing and management, and processed glass products.

The proposed joint venture comes as ACI continues to pursue business expansion through new investments and partnerships.

Financial performance

The fresh investment and new venture have been considered despite persistent pressure on ACI's consolidated financial performance for three consecutive years to FY25.

The listed conglomerate has reported consolidated losses for the financial years mainly because of higher borrowing costs and losses incurred by several subsidiaries. Between FY23 and FY25, ACI's cumulative losses amounted to Tk 2.54 billion.

In FY25, the group posted a consolidated loss of Tk 650 million. However, its standalone business remained profitable, with net profit rising 19 per cent year-on-year to Tk 3.99 billion, reflecting the strength of its core operations.

Despite the consolidated loss, ACI's board recommended a 25 per cent cash dividend for FY25, signalling confidence in the company's long-term fundamentals and cash-generating ability.

ACI's consolidated losses narrowed sharply to Tk 71.22 million in the nine months through March this year, from Tk 783 million in the corresponding period a year earlier, driven by higher sales.

Inflation-upturn fear keeps the central bank tightfisted on money supply as the key policy rate of interest is kept pegged at 9.5 per cent for emerging external and internal risk factors.

The Middle East crisis, higher energy prices and fiscal pressure practically pose uncertainty about continuation of downward inflationary rate.

In its latest policy update, the Bangladesh Bank (BB) has kept the policy rate unchanged at 9.5 per cent for the October-December quarter, citing persistent inflation risks, elevated global energy prices and uncertainty stemming from the disruption in the Strait of Hormuz.

The central bank said the moderation in headline inflation does not yet provide evidence of durable disinflation. Elevated global energy prices and navigation disruption in the Strait of Hormuz could create supply and cost pressures, with potential pass-through to consumer prices.

The recent upward adjustment of administered fuel prices and the implementation of the national pay scale could further increase production costs and demand pressure, the BB has said to justify its cautious stance.

It also warns that premature monetary easing could weaken inflation expectations and delay the return of inflation to the desired path.

"Considering these risk factors, members of the monetary policy committee (MPC) has decided to keep the tight monetary stance unchanged," BB Deputy Governor Dr Md. Habibur Rahman, who leads the monetary-policy department, said while announcing its maiden quarterly MPS (monetary policy statement) on Wednesday.

The BB traditionally announces the MPS with the BB governor in the chair, but the present governor, Md. Mostaqur Rahman, did not attend the MPS-unveiling event on ground of "other engagement".

However, the deputy governor informed that the governor assured him of his availability in the next MPS programme scheduled for December.

As per the latest MPC decision, the interest-rate corridor will remain same with Standing Lending Facility (SLF), the upper ceiling of the corridor, at 11.0 per cent, while the floor rate of the corridor called Standing Deposit Facility (SDF) will stay at 7.50 per cent.

Amid weak credit demand, he said, private-sector credit growth stood at only 4.75 per cent in August 2026, while broad money growth reached 12.40 per cent.

The non-performing-loan ratio remained high at 32.78 per cent. Monetary easing was passing through to market rates, but transmission to credit and the real economy remained weak.

Dr. Rahman has noted that liquidity was ample but unevenly distributed among banks, while credit demand remained subdued.

The central bank also stressed that lower interest rates alone cannot resolve insolvency, weak governance and inadequate provisioning in the banking sector.

Looking ahead, he said, Bangladesh Bank identified prolonged geopolitical conflict, higher energy and fertiliser prices, tighter global monetary conditions, domestic energy and infrastructure constraints, fiscal pressures, the national pay scale and weaknesses in the banking sector as key risks.

About the possible effective regulatory steps to lessen NPL (non-performing loan) buildup by way of stimulating private-sector credit appetite, he informed that the regulator is working on making an 18-month plan which would help significantly reduce NPL pressures while spurring private-sector-credit demand.

"Detailed specifics of the plan will be shared with you soon," he added.

Regarding the rationale for 50-basis-point cut in the policy rate in July last, he said the central bank considers both inflation and real-sector activity when setting monetary policy.

At the time of the 50-basis-point rate cut, economic indicators such as industrial production, private-sector credit, employment and investment suggested that high borrowing costs were weighing on economic activity, while inflation was considered largely supply-driven.

The rate cut was, therefore, intended to provide some relief to businesses and balance inflationary pressures with real-sector activity. Following the cut, call money, Treasury bill and bond rates declined, reducing borrowing costs to some extent and easing supply-side cost pressures, the BB deputy governor explains.

Deputy Governors Md. Sarwar Hossain and Md. Anis Ur Rahman along with executive directors Dr Imam Abu Sayed and Arief Hossain Khan, were among others present at the MPS launch.

Factory activity in China crept back to growth in September, official data showed Wednesday, providing a positive sign for the country’s leaders after two months of contraction.

The data came after Beijing announced a stimulus package to offset economic strains and low spending in the world’s second-largest economy.

The manufacturing purchasing managers’ index (PMI), a closely watched gauge of industrial health, came in at 50.1 this month, just above the 50 mark separating expansion from contraction.

The data from the National Bureau of Statistics was in line with the forecast in a Bloomberg survey of economists -- and an improvement of the 49.8 and 49.2 recorded in July and August respectively.

NBS statistician Huo Lihui said in a statement it showed “that there has been recovery in economic (conditions)”.

Huo noted that “three key industries show rapid expansion”, including equipment manufacturing, high-tech manufacturing and the consumer goods industries.

“Production and operations in the relevant industries remained robust overall,” he added.

The non-manufacturing PMI, which measures activity in other areas including services and construction, came in at 50.2, the data showed.

That outstripped a Bloomberg forecast of 49.2 and was up from last month’s 49.0.

“The construction industry’s business activity index rose to its highest level this year,” Huo added.

Leaders in Beijing are seeking to maintain economic pace despite hurdles including trade frictions with Washington and an entrenched property-sector crisis that has spooked consumers.

Beijing on Monday announced “a package of pragmatic and effective incremental policy measures” to support the economy.

The government will introduce measures aimed at stabilising the property market and promoting employment and income growth, state news agency Xinhua said.

On Tuesday, the People’s Bank of China followed suit, announcing measures to reduce credit costs in sectors including infrastructure and technology, and to offer more subsidies to home buyers.

The central bank will also broaden loans to support investment in water, power-grid, computing, communications, urban pipeline and logistics networks, it said.

Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, warned that while the stimulus policies are “another step in the right direction”, they might not be adequate to stabilise the economy alone.

“The fiscal subsidies are confined to apartment transactions less than 1.5 million yuan ($224,000) in value. Most apartments (in key cities)... don’t qualify as they are more expensive,” he said.

Nevertheless, he added, “policy makers are taking a new approach”, and the move marks “one step forward to address the problem properly”.

China’s economy has been supported by a historic boom in exports that has shown no sign of stopping in recent months.

It has also been helped by the global artificial-intelligence frenzy that has increased demand for its tech products.

The Bangladesh Bank (BB) has kept its main interest rate unchanged at 9.5 percent for the October-December quarter, saying inflation risks ahead are still large and the economy is weak.

The risks include higher global energy prices, the ongoing conflict in the Middle East, the recent fuel price hike and partial implementation of the new pay scale for public employees.

In its monetary policy statement yesterday, the central bank said it would wait and watch before cutting rates again. The BB lowered the policy rate by half a percentage point to 9.5 percent on August 2.

The Standing Lending Facility (SLF) rate stays at 11 percent, while the Standing Deposit Facility (SDF) rate stands at 7.5 percent, as per the monetary policy statement.

This was the BB’s first quarterly policy statement. Previously, the central bank announced its monetary policy statement for six months at a time.

While announcing the statement at a press conference at BB headquarters, Deputy Governor Md Habibur Rahman said inflation slowed to 8.26 percent in August, the lowest in 10 months, from 9.16 percent in June.

Food prices drove the decline, with food inflation at 7.02 percent. Prices of other goods and services remained elevated at 9.32 percent.

Habibur said the recent moderation in headline inflation does not yet provide sufficient evidence of durable disinflation.

The central bank listed several threats, including higher global energy prices, the prolonged conflict in the Middle East, shipping trouble in the Strait of Hormuz, the latest fuel price hike in the third week of September and the new pay scale for public employees.

“The monetary policy committee decided to observe the impact of these developments for another one or two months before taking a fresh decision on the policy rate,” said the deputy governor.

He said the BB considers its monetary policy stance somewhat tight because the rate is high compared with those in other countries and with inflation.

GROWTH

The Bangladesh Bureau of Statistics (BBS) put growth for the fiscal year 2025-26 at 4.14 percent. However, the central bank said the figure may hide underlying weakness.

Growth in the third quarter of FY26 was only 2.2 percent, while factory output fell 0.28 percent. Recent data point to a small pickup in the July-September quarter, according to the monetary policy statement.

To stimulate economic activity, the BB announced a Tk 60,000 crore loan package, comprising a Tk 41,000 crore refinancing fund and Tk 19,000 crore from its own funds.

Of the total, Tk 20,000 crore is earmarked for reopening closed factories. The rest will go to farming, small businesses and export growth. The central bank expects the plan to create about 25 lakh jobs, restore export momentum and boost farm output.

Private-sector credit grew by just 4.75 percent in August, well below the central bank’s 6.8 percent target through December.

This means banks have plenty of cash, but demand for loans is weak. Interbank rates and yields on government bonds have fallen, yet the lower rates have not reached borrowers.

18-MONTH PLAN FOR BAD LOANS

In June, bad loans accounted for 32.78 percent of all loans in the country’s banking sector.

At the press conference, Habibur admitted that the central bank’s earlier steps to deal with bad loans were slow.

He said the BB and the government are now preparing an 18-month plan to tackle the problem and roll out the stimulus package.

“It will be shared with stakeholders soon,” he said, adding that it should bring a clear improvement.

EXTERNAL SECTOR & OUTLOOK

Habibur said the external sector had provided some relief. The country ran a surplus of $6.6 billion in FY26, helped by strong remittance inflows from Bangladeshis living abroad.

He said this helped keep the taka steady and lift foreign exchange reserves. The BB bought more than $6 billion from the local market over the past year.

The picture changed in the first two months of the new fiscal year, when the balance moved into deficit. Remittances still rose 18.9 percent during the period.

The deputy governor said the central bank expected a gradual rather than rapid recovery.

The World Bank forecasts growth of 4.6 percent for FY27. The International Monetary Fund (IMF) cut its forecast to 3.5 percent from 4.3 percent.

The BB said it would maintain a data-driven approach, with an emphasis on targeted credit support, structural reforms, financial-sector strengthening and orderly exchange-rate flexibility.

India’s trade remedies authority has recommended definitive anti-dumping duties of up to $218 per tonne on imports of polyethylene terephthalate (PET) film, widely used in packaging, from Bangladesh for five years.

In the final findings of a year-long probe, dated September 29, the Directorate General of Trade Remedies (DGTR) proposed a duty of $218 per tonne on film exported by most Bangladeshi firms.

It set a lower rate of $58 per tonne for AKIJ Biax Films Ltd, a concern of AkijBashir Group, the only Bangladeshi company to cooperate with the probe.

The recommendation comes just days after India imposed anti-dumping duties of up to $445 per tonne on Bangladeshi jute products, including jute yarn and twine, following a mid-term review by DGTR.

India’s Directorate General of Trade Remedies proposed a duty of $218 per tonne on film exported by most Bangladeshi firms

Earlier this week, the DGTR separately recommended countervailing duties of up to $140.04 per tonne on jute products from Bangladesh.

The PET film – plastic sheets widely used in flexible packaging for food, pharmaceuticals, and consumer goods, as well as in electrical and industrial applications – recommendation also covers China and Thailand.

Chinese producers face $54 to $361 per tonne, depending on whether they cooperated, and Thai exporters $198 to $366, according to the DGTR report.

The DGTR concluded that dumped imports from the three countries undercut Indian producers’ prices and caused them material injury.

The duties take effect only if India’s finance ministry notifies them.

Bangladesh’s shipments of PET films rose from 12 tonnes in fiscal year 2021-22 to 2,763 tonnes in 2024-25, according to the findings, or about 3.4 percent of India’s PET film imports. China supplied 26,086 tonnes and Thailand 12,870.

The DGTR found that all of AKIJ’s relevant home-market sales were below cost, so it built a normal value from the company’s costs rather than its domestic prices. It, however, declined to adjust AKIJ’s export price for export incentives, saying the claim was not tied to the product shipped to India.

AKIJ officials did not respond to phone calls seeking comment.

The probe began on September 30, 2025, after an application from Indian manufacturers Chiripal Poly Films, Ester Industries and Vacmet India.

It initially covered Bangladesh, China, Thailand and the United States. The US was dropped at the preliminary stage after the domestic industry withdrew its complaint.

The investigation examined imports from April 2024 to March 2025, and the injury assessment ran from 2021-22 to the end of that period.

Anti-dumping duties are protective tariffs imposed on imported goods by a host nation when foreign items are exported at prices lower than their fair domestic market value or production cost, causing material injury to local industry.

With PET film facing these new tariffs, the number of Bangladeshi export products subject to such trade measures stands at five.

Historically, five countries – Argentina, Brazil, India, Pakistan, and Turkey – have slapped anti-dumping duties on Bangladeshi exports, including 100 per cent knitted textile gloves, jute bags and sacks, hydrogen peroxide, jute yarn/twine, and synthetic yarn.

Pakistan previously applied a 12.14 per cent anti-dumping duty on hydrogen peroxide from most Bangladeshi exporters before later discontinuing it.

Since 1992, Bangladeshi exporters have faced nearly a dozen anti-dumping investigations across these markets, according to a study by the Bangladesh Foreign Trade Institute.

A move by field offices of the National Board of Revenue (NBR) to collect tax on interest earned from microsavings has raised concerns among microfinance institutions (MFIs), which say the measure could discourage poor people from saving.

Several income tax field offices have recently asked a number of MFIs to deduct and deposit 10 percent tax on interest paid to micro savers. They have also suggested that the MFIs pay a 2 percent fine for failing to deduct the tax, citing the Income Tax Act 2023.

The issue affects a large number of low-income savers. As of June 2025, nearly 700 MFIs licensed by the Microcredit Regulatory Authority (MRA) were operating with about 4.40 crore members. Around 90 percent of their members were women, according to MRA data.

At the time, the MFIs had total outstanding loans of Tk 1,74,880 crore and savings of Tk 79,932 crore.

According to the Credit and Development Forum (CDF), an association and not-for-profit umbrella organisation of MFIs in Bangladesh, the institutions paid Tk 4,795 crore in interest to depositors.

A 10 percent tax deducted at source from that interest would generate about Tk 479.5 crore in tax revenue.

In a letter to the NBR, the CDF said the revenue from the tax would be relatively small compared with its possible impact. It warned that taxing microsavings could discourage rural people from saving, reduce the national savings rate and make it harder for MFIs to raise funds.

MFIs encourage ultra-poor and low-income people to save small amounts regularly so they have money available when they need it.

“People can start saving with as little as Tk 10,” said Murshed Alam Sarker, chairman of the CDF.

He said MFIs credit the full interest to savers because the institutions’ service-charge income is tax-exempt.

“Since the current fiscal year, some tax offices have asked us to deposit tax on the interest earned by savers. What is the rationale for collecting tax from poor people?” he said.

Last week, the CDF wrote to the NBR, urging it to keep interest earned from microsavings tax-exempt. It also sent letters to the finance minister and the MRA, Murshed said.

CDF SEEKS CLARIFICATION ON TAX LAW

The CDF said the service charges, or the interest MFIs earn from their microcredit operations, are legally tax-exempt. It cited a provision in the MRA Act 2006 and said collecting deposits is part of the institutions’ operations.

The law also protects savers’ right to earn interest on their deposits, the forum said. As the MFIs’ income is tax-exempt, they have treated the interest paid to micro savers as tax-free, it added.

However, the CDF said the Income Tax Act 2023 classifies interest income from deposits as subject to withholding tax and requires tax to be deducted when the interest is paid.

The Finance Act 2023 made tax deductions on interest payments mandatory but did not clarify whether the provision applies to savings held by microfinance members, the organisation said.

“Most members of microfinance institutions are low-income people whose earnings are well below the minimum taxable income threshold. As they are not liable to pay income tax, they have no legal way to adjust or claim a refund for tax deducted from their savings in advance,” the CDF said.

The forum also pointed out that small, regular savings help build rural capital and provide an informal safety net for families facing illness, natural disasters, crop failures or sudden loss of income.

A senior NBR official said the income tax law provides for tax deductions on interest paid on deposits. “It appears that our field offices have started collecting the tax under this provision,” he said.

The NBR has received the CDF’s letter, and senior officials are expected to discuss the issue soon, he added.

Prof Mohammed Helal Uddin, executive vice chairman of the MRA, said most MFI members are marginalised people who save very small amounts, often just Tk 20 to Tk 30.

“Collecting tax on their savings income would go against the government’s policy of supporting marginalised people and reducing inequality,” he said.

“We will raise the issue with senior government officials and seek to keep interest income from microsavings tax-free,” he added.

Global bonds wobbled on Wednesday and were set for their worst month in years, hit by a toxic mix of deteriorating government finances, a glut of issuances and rising inflation as the seven-month-old US-Israeli war on Iran keeps energy costs elevated.

Meanwhile, stocks fared better, largely unfazed by the surge in bond yields and were upbeat in Asia.

The rise in borrowing costs has been front-and-centre for investors, given that sovereign yields are an anchor for global markets, a reference price for investing in riskier stocks and a benchmark for mortgages and corporate borrowing.

Benchmark 10-year US Treasury yields held near their highest point since 2007 at 5.2383 per cent in Asia and were set for a rise of nearly 50 basis points this month, the largest in about two years. Bond yields move inversely to prices.

The 2-year yield fell slightly to 4.8889 per cent after New York Federal Reserve President John Williams pushed back against expectations for earlier policy tightening, though yields remain more than 50 bps higher for the month.

"This is becoming much bigger than another repricing of the next few central bank meetings," said Charu Chanana, chief investment strategist at Saxo.

"I do think we are moving towards a structurally higher-yield regime ... The hurdle for yields to return sustainably to the ultra-low levels investors became accustomed to after the (Global Financial Crisis) looks much higher."

Yields in Japan are hovering near multi-decade highs, while 10-year government bond yields in Germany and France hit 17-year and 18-year peaks this week.

Defying the Yield Surge

While a persistently higher risk-free rate increases the cost of refinancing for companies and weighs on growth, its impact on stocks has thus far been relatively limited.

MSCI's broadest index of Asia-Pacific shares excluding Japan .MISX00000PUS rose 0.2 per cent in early trading and was on track for a monthly fall of just over 1 per cent.

Japan's Nikkei rose 0.9 per cent and was set to end the month little changed, while South Korea's Kospi was headed for a monthly gain of 1.4 per cent.

Nasdaq futures edged 0.13 per cent higher and S&P 500 futures added 0.16 per cent. EUROSTOXX 50 futures and DAX futures advanced 0.5 per cent each, while FTSE futures tacked on 0.4 per cent.

Much of the resilience in equity markets can be attributed to upbeat corporate earnings, strength in the global economy and continued hype around artificial intelligence.

"What was surprising to us was the sanguine reaction of the equity market where the growth in nominal GDP was driving earnings optimism," said Citi's head of Asia-Pacific trading strategy Mohammed Apabhai in a note, referring to the recent rise in bond yields.

"US equity markets are reacting to the rise in bond yields but only outside of the tech space."

He added that, in meetings with macro funds and institutional investors in New York, many asked how high bond yields could go, at what level hyperscalers might scale back capital spending and when equity markets would react.

Dollar Gets a Lift

In currency markets, the dollar was on track for a monthly gain of 2 per cent, aided by the rise in US yields.

That left the euro trading near a 16-month low at $1.1336. It was headed for a monthly loss of 2.4 per cent as the currency struggles in the face of a global energy shock and growing political risk in Europe.

Sterling fell 0.03 per cent to $1.3227 and was set to lose 2.4 per cent for the month.

The yen, however, steadied at 157.03 per dollar and was eyeing a monthly gain of 1.7 per cent, with investors wary of pushing the currency lower due to the threat of a joint intervention by Tokyo and Washington.

In commodities, oil prices rose on Wednesday, with Brent crude futures up 0.56 per cent to $103.16 a barrel, while US crude edged 0.11 per cent higher to $89.49.

Both were set for monthly gains, on concerns about prolonged supply disruptions due to the ongoing Middle East war.

Spot gold was down 0.2 per cent at $4,171.93 an ounce.

Stakeholders have called for a phased and practical rollout of the proposed Bangladesh Securities and Exchange Commission (BSEC) Corporate Governance Rules 2026, saying stricter requirements could be difficult for companies to implement without adequate preparation and institutional capacity.

The call came at a roundtable titled “Strengthening Corporate Governance in Bangladesh”, organised by SMAC Advisory Services Ltd in Dhaka on Tuesday evening.

Hossain Sadat, a BSEC commissioner, attended the event as the guest of honour, alongside regulators, company representatives, professional bodies, academics and journalists.

Participants reviewed the draft Corporate Governance Framework 2026, stressing that it should go beyond formal compliance to ensure effective oversight by boards and their committees.

Zareen Mahmud Hosein, chairman of SMAC Advisory Services, compared the proposed rules with governance practices in other regional markets.

Participants reviewed the draft Corporate Governance Framework 2026, stressing that it should go beyond formal compliance to ensure effective oversight by boards and their committees

The draft introduces reporting requirements covering environmental compliance, corporate social responsibility (CSR) policies, and CSR budgets and spending.

Zareen recommended adopting a common international framework for sustainability reporting to avoid overlapping requirements. She also questioned whether companies, consultants and auditors were adequately prepared for the new rules and who would verify or certify environmental, social and governance (ESG) disclosures.

“Phased implementation is necessary,” she said, calling for clearer definitions and valuation requirements for related-party transactions, proportionate risk oversight and a roadmap for sustainability disclosures aligned with international standards.

Independent directors emerged as a major implementation concern. Under the draft, the maximum number of listed companies on whose boards an independent director can serve would be reduced from five to three.

The minimum general experience requirement would rise from 10 to 12 years, while independent directors would have to make up at least one-third of a board or three directors, whichever is higher.

The draft would also extend the cooling-off period for former executives from two to three years and introduce mandatory training for independent directors.

However, Zareen cautioned that increasing the number of independent directors would not automatically ensure genuine independence. She called for transparent nomination processes, disclosure of those proposing candidates and clear evidence that nominees meet independence criteria.

Snehasish Barua, managing director of SMAC Advisory Services Ltd, also emphasised the role of independent directors.

“Ensuring the independence, accountability and transparency of independent directors is one of the primary foundations of institutional good governance, stakeholder trust and long-term value creation,” he said.

Prof Melita Mehjabeen of the Institute of Business Administration stressed that boards should balance their oversight responsibilities with each organisation’s structure and circumstances.

M Nurul Alam, president of the Institute of Internal Auditors Bangladesh, highlighted the importance of directors’ professional knowledge and understanding of operational needs, alongside transparency and accountability.

In his closing remarks, BSEC Commissioner Hossain Sadat said the commission would consider stakeholder feedback and the long-term implications of policy decisions in developing a framework that protects investors and supports investment.

He underscored the importance of transparency and safeguarding investor rights, even amid resource constraints, adding that the commission aimed to formulate an investment-friendly corporate governance framework within this year, taking into account the interests of domestic and foreign investors.

The BSEC first issued corporate governance guidelines in 2006 and revised them as the Corporate Governance Code on June 3, 2018.

The code requires listed companies to comply with provisions on board composition, the appointment of independent directors, directors’ reports to shareholders, audit and remuneration committees, and corporate websites.

Earlier this year, the commission published the draft Bangladesh Securities and Exchange Commission (Corporate Governance) Rules 2026 for stakeholder feedback.

Bangladesh’s capital market is at a point where meaningful reform is no longer an option; it is a necessity. Over the years, we have seen a gradual erosion of public interest and confidence. Restoring that confidence will require credible institutions, quality companies, long-term investors and a market structure that creates value. Against this backdrop, I believe the Bangladesh Securities and Exchange Commission’s initiative to introduce a more effective framework for direct listing is timely.

For decades, Bangladesh’s corporate sector has relied heavily on bank financing. Banks will continue to play a central role, but this dependence has also put pressure on the banking sector. An economy of our size and ambition cannot sustainably depend on bank loans for corporate financing. We need both a strong banking system and a deeper capital market. A well-functioning capital market can provide long-term equity financing, reduce debt dependence, ease pressure on banks and create a healthier financial system.

A well-designed direct listing framework can bring established companies to the capital market, broaden investment opportunities, improve liquidity and help rebuild investor confidence.

Bangladesh has no shortage of successful and reputable businesses. Many have strong fundamentals, sound governance and decades of operating history. Yet they may not have an immediate need for fresh capital. Under the traditional IPO model, this can make entering the capital market less compelling. Companies that do need additional capital have also faced lengthy approval processes, valuation restrictions, limited flexibility in structuring an IPO and other regulatory requirements. As a result, many good companies have remained outside the market. This is where direct listing can create a new pathway.

A direct listing framework can reduce the time and complexity involved in bringing established companies to the market. It can provide a mechanism for sponsors and directors to realise fair value for part of their holdings, unlocking wealth they have created through decades of work. It can also create new investment opportunities for the public and liquidity for existing shareholders.

Listing can offer established companies a transparent market-based valuation, stronger visibility, improved governance and greater institutional discipline. For eligible companies, the 7.5 percent tax differential can also strengthen the commercial rationale for listing.

Importantly, direct listing does not have to be linked to an immediate funding requirement. A company may list without needing fresh capital while retaining the ability to raise equity in the future through rights issues or further public offerings when capital is required. The objective should not simply be to increase the number of listed companies. It should be to bring the right companies into the market: businesses with strong fundamentals, credible management, sound governance and a proven track record. If some of Bangladesh’s most respected companies enter through a direct listing mechanism, it could improve market depth, broaden investment opportunities, enhance liquidity and help rebuild investor confidence.

At IDLC Investments, we have spent many years developing Bangladesh’s capital market through complex transactions and innovative initiatives. This has allowed us to engage with leading business groups. Many successful businesses are not opposed to listing; rather, they need a framework that is practical, predictable and commercially viable. The discussion on the draft Bangladesh Securities and Exchange Commission (Direct Listing of Securities on the Stock Exchange) Rules, 2026, held by the Commission with market participants, including IDLC Investments and leading business groups, is a welcome development. The consultation can bring practical market experience into the regulatory framework.

Ultimately, the capital market should be viewed not merely as a platform for trading shares, but as a strategic pillar of Bangladesh’s economic architecture, connecting long-term capital with productive businesses, supporting entrepreneurship, strengthening governance and reducing dependence on debt.

The writer is the managing director of IDLC Investments Limited

Bangladesh faces 66 operational and policy gaps in ensuring supply- chain traceability in major export sectors, which poses compliance problems in major export destinations, sources say.

The lapse stokes concerns about the country's ability to comply with increasingly stringent international trace-and-track requirements in trade operations.

Traceability is the process of identifying and tracking a product or component's path from raw materials to finished goods that helps the destinations countries in policy decisions about the imports.

A comprehensive diagnostic presented by the Ministry of Commerce (MoC) at a recent closed-door workshop has revealed these gaps. The diagnostic was conducted by BUILD with the support of GIZ.

It identified gaps across key export sectors, including readymade garments (RMG), leather and footwear, agro-food and fisheries.

The diagnostic has found that the country's key weakness is not the complete absence of supply-chain data but the fragmentation of existing information across different systems, including customs, according to an MoC report.

The report warns that addressing the gaps quickly would be important for Bangladesh to maintain market access and meet emerging traceability and sustainability requirements in major export destinations.

The report, obtained by the FE, was presented at an internal workshop organised by the MoC's export wing on 'Strengthening Supply Chain Traceability for Responsible Business Conduct and Trade Competitiveness in Bangladesh' on Sunday at the Secretariat.

Of the 66 gaps identified, 39 have been classified as critical or structural based on the Criticality Preference Scoring (CPS) method.

Commerce Minister Abdul Muktadir was the chief guest at the event, while Commerce Secretary Ataur Rahman chaired the workshop.

High-ups from all relevant ministries, stakeholders, diplomats, development partners and exporters joined the meet.

Talking to the FE, the Commerce Minister said the government decided to introduce sector-based traceability for both export markets as well as the domestic market.

"Concerns over food adulteration and fair prices for farmers would be resolved if we could ensure traceability of products," he added.

Chief Executive Officer of BUILD Ferdous Ara says domestic traceability is important, but priority should be given to export traceability in the first phase.

"We have to introduce Digital Product Passports (DPPs) involving relevant ministries to address the different types of requirements from buyers," she said.

She has suggested establishing a national traceability platform and expediting the traceability strategy by giving it the utmost priority.

The diagnostic identified 18 critical gaps requiring action within 18 months, 13 structural gaps to be addressed within 18 to 36 months, and eight strategic gaps requiring attention over 36 to 60 months.

The largest number of gaps, 14, was identified in technical and data-related areas, five of which were classified as critical.

Another 14 gaps were found in policy and regulatory areas, including four critical gaps, while institutional and governance issues accounted for 12 gaps, three of them critical.

Sectoral structure accounted for nine gaps, industry capacity eight, and financial issues seven. Enforcement and data governance had one gap each.

Data are not sufficiently connected, standardised, interoperable, verified or reusable across supply chains, it said.

"The lack of an integrated system is also creating difficulties in meeting requirements in major export markets," the report says.

There is currently no real-time data link connecting exporter-origin information with customs authorities at both ends of international supply chains, according to the diagnostic.

Concerns have also emerged over the traceability of cotton and other raw materials.

In particular, blended-origin cotton poses challenges for Bangladeshi exporters seeking to comply with the US Uyghur Forced Labor Prevention Act (UFLPA), as origin information is not adequately documented at the mill level.

The country's limited domestic forensic-testing capacity is another challenge.

Exporters often have to rely on foreign verification services, increasing costs and potentially delaying shipment.

It says digital-traceability initiatives remain largely confined to individual factories or pilot projects instead of operating through a common sector-wide system.

The report has placed textiles and RMG, leather and footwear, agro-food and fisheries, and shrimp in the very-high-priority category because of regulatory requirements and enforcement deadlines in major export destinations.

The European Union's digital catch certification system, CATCH, has been in use for seafood imports since January 10, 2026.

The EU's Digital Product Passport requirements are also approaching, with mandatory application for RMG and apparel expected from the third or fourth quarter of 2027.

The EU Deforestation Regulation requires plot-level geolocation information for medium and large enterprises from December 30, 2026, while deforestation-free supply chains are expected to become increasingly important towards 2030.

The EU Forced Labour Regulation is scheduled to begin import-ban enforcement on December 14, 2027.

In the leather sector, slaughterhouse-level traceability under the Leather Working Group requirements is expected to be phased in during 2028-2030.

Against this backdrop, the Ministry of Commerce has established a Policy Coordination Unit for Circularity and Traceability and an Interministerial Coordination Committee.

The government is also working on a National Traceability Strategy, an ESG Framework and responsible business conduct guidelines.

Several private-sector initiatives are already underway.

Digital Product Passport pilots have been launched at companies that include Urmi Group, Epyllion and Fatullah Apparels, while the Leathertrace pilot covers 16 tanneries and a shrimp-tracking initiative covers around 400 farmers.

ABM Faqrul Alam, head of Sustainability at Urmi Group, who attended the workshop, has stressed the need for interministerial coordination and said the Ministry of Energy should be included in the process.

He said Urmi Group had already made significant progress in traceability and recommended scaling up industry best practices.

"Traceability is urgent for the sake of business, as the EU is the major export destination for Bangladesh," he added.

Mr Alam said Urmi Group formally started its traceability initiative in 2024 using data dating back to 2015-16.

The company has introduced the first Digital Product Passport (DPP) in Bangladesh and uses more than 20 portals for traceability.

"Emission reduction must also be ensured through traceability," he said.

The diagnostic recommends establishing an interoperable National Traceability Platform rather than creating another standalone database.

Such a platform would provide common data standards, unique identifiers and real-time integration with customs systems across export sectors.

It also recommends establishing a National Traceability Steering Committee to coordinate the system and ensure interoperability among government agencies, exporters and other supply-chain stakeholders.

BKMEA Joint Secretary Farzana Sharmin says awareness and preparing a policy framework are important now.

"Interministerial coordination is needed to avoid repetition or overlapping decisions," she adds.

The quality and reliability of economic data have universally been regarded as fundamental to sound policy planning. Yet the importance of statistics goes beyond the accuracy of individual figures. What a country chooses to measure, and what it leaves outside the frame of measurement, can profoundly influence how it understands its own economic condition. A high rate of growth may look reassuring on paper, but it may conceal the depletion of forests, fisheries, minerals and other natural assets on which future prosperity depends.

Against this backdrop, Bangladesh's move towards a broader system of measuring economic growth and national wealth deserves attention. The Bangladesh Bureau of Statistics (BBS) is planning to measure net domestic product (NDP) in line with recommendations of the United Nations, according to BBS officials. The initiative is intended to give policymakers a more comprehensive picture of economic performance and wealth creation while strengthening confidence in official statistics.

The proposed measure is expected to be derived from revised national accounts, with 2025-26 designated as the new base year. According to people familiar with the developments, the BBS may publish the first estimates under the revised framework in April-May 2028. If implemented properly, the initiative could represent an important step in the evolution of Bangladesh's statistical system.

The significance of the move lies partly in what conventional GDP does not tell us. Gross domestic product measures the value of final goods and services produced within a country during a given period. It is indispensable for understanding economic activity, but it does not, in itself, provide a complete account of the condition of the assets that make that activity possible.

NDP goes somewhat further by deducting the consumption or depreciation of fixed capital from GDP. In conventional accounting, this means recognising the wearing out or loss of productive assets such as machinery, buildings and vehicles. But the proposed approach seeks to take another important step: recognising the economic cost of the depletion of natural assets.

Bangladesh intends to incorporate the United Nations' System of Environmental-Economic Accounting (SEEA) into its national accounts. The framework seeks to bring environmental and economic information together, making it possible to examine the relationship between economic activity and changes in the country's natural-asset base. As a senior BBS official has noted, the international statistical system is increasingly placing emphasis on measures of national wealth and looking "beyond GDP." That shift is more than a technical adjustment. It reflects a changing understanding of what constitutes economic progress.

An economy can expand rapidly while simultaneously consuming the resources that sustain its future. The extraction of minerals, the clearing of forests, the depletion of fisheries or the degradation of land can contribute to production and income today. But if the natural assets are not replenished or managed sustainably, the apparent gain may carry a hidden cost. In such circumstances, the economy may be growing in terms of current output while quietly diminishing the foundation of tomorrow's output.

This is particularly relevant for Bangladesh, where natural resources and environmental systems are closely intertwined with livelihoods and economic activity. Rivers, wetlands, fisheries, agricultural land and coastal ecosystems are not merely environmental features; they are productive assets. Their degradation can eventually translate into lower agricultural productivity, declining fisheries, greater disaster vulnerability, higher public expenditure and lost livelihoods. Yet many of these costs remain largely invisible in conventional measures of GDP.

A broader measure of NDP could, therefore, help answer a more meaningful question: how much wealth is the economy actually creating after accounting not only for the deterioration of its man-made productive assets but also for the depletion of its natural capital?

The task will not be easy. Measuring the depletion of natural resources requires reliable information and credible methods of valuation. Putting economic value on forestry, fishery, mineral deposits or an ecosystem is considerably more complicated than recording the market value of a manufactured product. The BBS will need new data sets, methodological capacity and close coordination with government agencies responsible for the environment and natural resources.

The BBS also plans to calculate net national disposable income (NNDI) as part of the wider revision of the national-accounting framework. These changes are part of a broader effort to update Bangladesh's national accounts and bring them more closely in line with evolving international statistical standards.

There is, however, a larger lesson in this exercise. Statistics are not simply numbers collected after economic events have occurred. They shape the way policymakers see the economy and, consequently, the priorities they set. If the statistical framework records only what is produced and consumed, policymakers may naturally give greater weight to immediate output and income. If it also records what is being depleted or lost in the process, the costs of unsustainable growth become harder to ignore.

For Bangladesh, therefore, moving beyond GDP should not be seen merely as an exercise in adopting a sophisticated international accounting framework. It is an opportunity to develop a more authentic narrative of economic progress-one that distinguishes between wealth creation and the liquidation of assets. Ultimately, the value of better statistics lies not in producing more impressive numbers but in producing numbers that tell more of the truth.

ACI PLC will invest an additional Tk60 crore in ACI CO-RO Bangladesh Ltd, its existing joint venture with Denmark-based CO-RO A/S, to expand the business and increase production and exports.

The investment was approved at the company's 232nd board meeting held yesterday (29 September) through a hybrid system.

The investment is subject to approval from the relevant regulatory authorities, according to a disclosure by ACI on the Dhaka Stock Exchange (DSE). ACI's share price closed at Tk182 on the DSE today (29 September).

ACI and CO-RO A/S established ACI CO-RO Bangladesh in 2019 as a greenfield joint venture. ACI had previously invested around Tk50 crore in the venture and held a 49.9% stake, according to company information.

If the previous investment remains unchanged, the latest Tk60 crore investment would take ACI's cumulative investment in the venture to around Tk110 crore.

Mohammad Mostafizur Rahman, company secretary of ACI, told The Business Standard that the additional investment was approved mainly to expand the company's business.

"The board has approved the additional investment for business expansion," he said.

He said CO-RO A/S is not making any fresh investment in the venture at this stage.

He declined to disclose ACI's current ownership percentage in the joint venture or whether the latest investment would change its stake.

The company has also started exporting its products on a small scale, and exports are expected to increase following the planned business expansion, he said.

The stock exchange disclosure, however, did not specify how the Tk60 crore would be used. It remains unclear whether the additional funds will be used entirely for factory expansion, production-capacity enhancement or other business requirements.

ACI CO-RO Bangladesh manufactures and markets CO-RO's Sunquick fruit drink brand in Bangladesh. The company's factory in Narayanganj was inaugurated in February 2024.

The venture was established with a combined investment of more than $20 million by ACI and CO-RO, according to earlier company information. The figure represents the joint investment in the project and should not be considered CO-RO's individual investment.

New Japanese joint venture

At the same board meeting, ACI also approved the formation of another joint venture, ACI-ICHINEN Bangladesh Ltd., with Japan-based ICHINEN Holdings Co Ltd.

The proposed company will have an authorised capital of Tk50 crore and paid-up capital of Tk15 crore. ACI will hold a 60% stake in the new venture, subject to approval from the relevant authority.

The company plans to operate in areas including human resource development and manpower supply, motorcycle retail financing and agriculture.

The new venture will add another business line to ACI's diversified portfolio as the group continues to expand beyond its traditional consumer and pharmaceutical businesses.

Financial position

ACI's financial performance has also been a key consideration for investors as the company continues to make new investments.

According to the company's financial disclosures, its revenue increased 16% to Tk3,995 crore during the nine months ended March 2026, while net profit rose 13% to Tk368 crore. Earnings per share stood at Tk41.91 and net asset value per share was Tk379.57 during the period.

For investors, the key issues surrounding the latest investment will be how quickly the additional capital translates into higher production, sales and exports, as well as whether the expansion improves the profitability of ACI CO-RO Bangladesh.

The absence of details on the utilisation of the Tk60 crore and the resulting ownership structure means investors will likely need further information from the company on the project's capacity expansion, funding structure and expected returns.

Private sector credit growth has remained below 5% for six consecutive months, with growth standing at 4.75% at the end of August, according to Bangladesh Bank data.

Credit growth stood at 4.72% in March, 4.75% in April, 4.98% in May, 4.47% in June and 4.62% in July.

Bankers and economists attributed the slowdown to weak business and investment demand, sluggish domestic consumption and economic activity, and an energy crisis that has increased operating costs.

They also said high interest rates, driven by persistent inflation, have made borrowing more expensive.

Sohail RK Hussain, managing director of Bank Asia, said private sector credit growth was unlikely to see significant improvement over the next six months to a year.

"Demand has fallen significantly. Due to low demand, capacity utilisation of factories has also declined. Since there is still ample unused capacity in the market across various sectors, large investments to create new capacity are not needed right now unless demand increases significantly. It may take another year for this type of investment to pick up," he said.

He said large corporate entities already had high levels of bank loans or leverage, while domestic consumption and overall economic activity had remained sluggish for four to five years. As a result, large-scale new private investment projects were still limited.

He added that most current capital investment was focused on repair, maintenance and retaining existing capacity rather than creating new capacity.

Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue, said high inflation was keeping the policy rate elevated, making it difficult to rapidly increase credit growth.

"Inflation must be brought down; otherwise, reducing the policy rate will not be possible, as expansionary monetary policy cannot be pursued," she said, adding that adequate supply of goods was also needed to control inflation.

She said businesses were still lacking confidence to start new ventures despite the arrival of an elected government.

Long-standing infrastructure problems had also worsened, while higher energy prices and inadequate supply had increased business costs.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said major industrial groups were struggling and had reduced production, lowering their need for bank loans.

He also said irregularities during the previous government had left only slightly more than 15 banks in good condition, reducing the overall lending capacity of the banking sector.

How can bank credit growth increase?

Bankers said sick and closed industries need to be revived by expanding business and investment, reducing interest costs and attracting new investors.

Mahbubur said inflation must be brought down to encourage new investment.

Sohail said loans to businesses that remain classified as performing but whose factories are closed or struggling should be supported through new investors and various packages.

He said effective use of the Tk20,000 crore package for sick industries could reduce interest and operating costs for highly leveraged businesses and help them restart.

However, he said implementing the package would take time as companies must be assessed, their needs identified, and borrowers must also take steps to revive their businesses.