The US Transportation Department on Monday will finalize sharply lower vehicle fuel economy standards through 2031, reversing a push by the Biden administration to force automakers to build more electric vehicles, officials said on Saturday.

President Donald Trump said he had approved new fuel economy standards for cars and trucks, which he said will lower the price of new vehicles. "A major victory for America's auto workers is coming Monday," Transportation Secretary Sean Duffy said.
The new standards would cut the cost of new vehicles but increase fuel consumption and carbon dioxide emissions for decades, according to the department's own estimates.

Trump's push comes as American drivers are grappling with sharply higher fuel prices since the start of the US-Israeli war with Iran at the end of February.

Under Democratic President Joe Biden, the government sought to push automakers to build more electric vehicles to meet rising fuel-efficiency standards.

Biden increased required fuel efficiency for cars by 8 percent annually for model years 2024 and 2025, 10 percent for 2026 and 2 percent annually from 2027 to 2031.

The Trump administration in December proposed retroactively revising down the 2022 model year fuel economy standard and then raising it between 0.25 percent and 0.5 percent annually through 2031.

The Transportation Department proposed a fleetwide average of 34.5 miles per gallon (14.7 km per liter) by 2031, down from 50.4 miles per gallon (21.4 km per liter) under Biden.

It estimated its proposal would cut average new vehicle costs by $930 each.

But it would increase fuel consumption by around 100 billion gallons through 2050, fuel spending by $185 billion and carbon dioxide emissions by about 5 percent, the department said.

Trump's move will make it easier for automakers to sell consumers less efficient vehicles.

"Lowering standards will accelerate what (Trump) has already been doing: handing the clean tech future to China and forcing Americans to pay more at the pump," said Pete Buttigieg, who headed the Transportation Department under Biden.

Biden focused on reducing US greenhouse gas emissions and fossil fuel use, accelerating a transition to clean energy and making the US a global leader in clean-energy technology and manufacturing.

Bangladesh should begin preparing for negotiations to join the Regional Comprehensive Economic Partnership (RCEP), as the 15-member trade bloc has signalled a positive response to the country’s bid for accession, trade experts said.

The RCEP ministers approved the establishment of an Ad Hoc Accession Working Group to advance the accession process of Bangladesh, alongside Chile, Hong Kong and Sri Lanka, at a meeting in the Philippines on September 21.

The development comes more than two years after Bangladesh formally expressed interest in joining the world’s largest free-trade agreement.

In July 2022, an inter-ministerial meeting approved the commerce ministry’s proposal to join the RCEP to retain preferential market access after Bangladesh graduates from the United Nations’ least developed country (LDC) category.

Following that decision, the commerce ministry formally sent a letter of consent to the foreign ministry in October 2024, requesting Bangladesh’s accession to the RCEP.

‘A BIG DEAL’

Formation of a working committee by the RCEP ministers’ meeting for Bangladesh’s accession is a positive sign, said Mustafizur Rahman, distinguished fellow of the Centre for Policy Dialogue (CPD).

He said the bloc’s latest decision is significant as Bangladesh applied to join the group several years ago, but the application was not considered earlier.

“Joining the RCEP is a big deal because it is a bloc of 15 countries,” he said, adding that it would give Bangladesh access to improved trade benefits with all the member countries.

He noted that the development comes at a time when the government is seeking bilateral and regional trade agreements to preserve preferential market access after LDC graduation.

Mustafizur suggested that the government start preparing so that it can easily join the bloc.

‘MAKE EXTENSIVE PREPARATIONS’

Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said Bangladesh needs to make extensive preparations for the negotiations as accession to the RCEP requires Bangladesh to clear several stages.

The country needs to assess what it can offer RCEP members and whether the economy and domestic industries are prepared for greater competition under the trade agreement, he said.

The government should conduct studies on these issues and prepare its negotiating positions and recommendations before entering the accession process, he said.

Razzaque noted that the accession process could also create opportunities for Bangladesh to attract investment from RCEP member countries.

The bloc’s strong regional supply chains could generate opportunities for Bangladesh in both exports and imports if the country can integrate into them, he added.

At the same time, Razzaque said, Bangladesh needs to assess whether RCEP members could seek greater market access for their goods as part of the accession negotiations.

Member countries may seek commitments from Bangladesh to reduce tariffs or increase market access for their goods, as is common in trade agreements, he said.

‘CONDUCT COST-BENEFIT ANALYSIS’

Mostafa Abid Khan, chief executive officer of the Bangladesh Foreign Trade Institute (BFTI), said Bangladesh should conduct a comprehensive cost-benefit analysis before pursuing accession.

He suggested that the government assess the impact of potential tariff reductions and increased imports from RCEP members on local industries.

Echoing CPD’s Mustafizur, he noted that joining the RCEP could give Bangladesh improved market access to the Association of Southeast Asian Nations (ASEAN) and other member economies.WHAT IS RCEP?

The RCEP is a free-trade agreement among 15 economies — 10 ASEAN members, Australia, China, Japan, South Korea and New Zealand. Negotiations for the agreement formally launched in 2012, and the agreement was signed in November 2020. India participated in the negotiations but withdrew from the process in 2019.

The RCEP represents around 30 percent of global GDP and about one-fourth of global trade, making it the world’s largest free-trade agreement by economic size.

The bloc also accounts for around 31 percent of global foreign direct investment, according to estimates cited by trade researchers.

Apex Footwear Ltd plans to raise up to Tk 500 crore through redeemable preference shares to refinance existing loans, as the footwear maker’s total borrowing-related liabilities reached Tk 1,855.6 crore at the end of March, according to its unaudited financial statements.

Redeemable preference shares are a type of company stock issued to raise funds, with the issuing company agreeing to buy them back from investors after a set period. Preference shareholders receive fixed dividends before ordinary shareholders receive any profits.

The proposed issue is subject to approval from the company’s shareholders and the Bangladesh Securities and Exchange Commission (BSEC), Apex said in a price-sensitive information disclosure on the Dhaka Stock Exchange (DSE) on Sunday.

A company official, speaking on condition of anonymity, said the board had given preliminary approval and discussions were still underway on the terms, structure and subscription process.

“The preference shares will be redeemable, and the proposal is being considered mainly to refinance the company’s outstanding loans,” the official said.

The company had Tk 1,479.4 crore in short-term borrowings, while long-term borrowings, including current maturities, stood at about Tk 376 crore.

The move comes as higher finance costs continue to put pressure on the company’s earnings. Apex Footwear paid Tk 78.7 crore in interest during the nine months to March, up from Tk 67.4 crore a year earlier.

The company’s revenue rose to Tk 1,559 crore during the nine months to March from Tk 1,369 crore a year earlier. However, net profit increased only modestly to Tk 8.92 crore from Tk 6.99 crore.

Apex Footwear’s total assets stood at about Tk 3,028 crore, while shareholders’ equity was Tk 692 crore at the end of March.

The company has also recommended a 30 percent dividend for the financial year ended June 30, 2026, comprising a 15 percent cash dividend and a 15 percent stock dividend.

Its earnings per share rose to Tk 7.91 in FY26 from Tk 6.90 a year earlier.

Foreign portfolio investors (FPIs) have continued to pull out funds from Bangladesh's equity market as they have been moving assets to developed markets amid persistent macroeconomic challenges stemming from geopolitical tensions.

Net foreign portfolio investment in Bangladesh fell to a negative $223 million in FY26, compared with an outflow of $138 million a year earlier, according to Bangladesh Bank data.

It was the sixth consecutive year of net outflows, meaning foreign investors sold more securities than they bought in a given year.

Repeated policy interventions, particularly imposition of floor prices, banking-sector stress, currency volatility and weak investor sentiment have contributed to the deterioration in foreign participation.

The trend has continued in the current fiscal year, with foreign ownership declining in several major listed firms in July and August amid weak corporate earnings, higher operating costs and a persistent energy crisis.

It is particularly striking when foreign investors returned to net buying in Asian stocks in August after a nine-month selling streak.

Foreign investors bought a net $4.72 billion of stocks in Taiwan, South Korea, India, Indonesia, Thailand, Vietnam and the Philippines during the month, according to Reuters. India alone attracted $3.1 billion of net foreign purchases, marking a second consecutive month of buying that outstripped selling.

Market participants said overseas investors were becoming increasingly selective, favouring markets and companies that offer greater liquidity, stronger earnings prospects, easier market access and clearer policy visibility.

Md Akramul Alam, head of research at Royal Capital, attributed the foreign fund outflow to weak investor confidence, a strong US dollar and instability in the financial sector.

"The overall economic activity has remained sluggish, while the profitability of major listed firms has been subdued by high input costs," he said.

Private-sector credit growth was reported at 4.62 per cent in July, reflecting subdued business confidence and tighter lending conditions.

Mr Alam said the prospect of a sharp recovery in private-sector credit demand appeared limited after the central bank decided to keep its policy rate unchanged at 9.5 per cent until December.

Meanwhile, the US-Iran war has triggered renewed volatility in global oil markets, while the latest fuel price hike in the local market has raised fresh concerns about inflation and its broader economic impact on the oil-importing economy.

Inflation remained around 9 per cent, while analysts warned that price pressures could persist in the coming months because of the latest fuel price increase and elevated import costs.

The strong US dollar and relatively attractive returns on US assets are adding further pressure on frontier equity markets.

Higher US Treasury yields have strengthened the incentive for global investors to hold relatively safer dollar-denominated assets rather than take on additional currency and liquidity risks in frontier markets such as Bangladesh.

Besides, foreign investors typically seek a stable, predictable and consistent policy environment before making long-term commitments.

"When the local currency weakens, foreign investors incur losses as the value of their assets falls even when share prices remain unchanged," said Mir Ariful Islam, managing director and CEO of Sandhani Asset Management.

Foreign investors are likely to look for greater policy clarity and consistency before increasing their exposure to Bangladesh's equity market.

Multinational companies, traditionally among the preferred choices of foreign investors, have failed to escape the selling pressure.

Lower-than-expected earnings and higher operating costs have weakened the investment appeal of large companies.

Grameenphone, the largest listed company by market capitalisation, reported a 6 per cent year-on-year decline in profit to Tk 14.2 billion in January-June this year, while its revenue fell 2.5 per cent during the period.

Its foreign ownership consequently fell to 0.17 per cent in August from 0.25 per cent in June this year.

Similarly, Marico Bangladesh's foreign stakes fell to 0.91 per cent in August from 0.99 per cent in July this year.

Among local companies, Olympic Industries recorded a similar decline, with foreign ownership falling to 27.33 per cent from 27.51 per cent during the period.

Meanwhile, Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan expressed optimism that foreign investors will gradually return to the country's capital market as the regulator addresses some of the barriers that have discouraged overseas investment.

Speaking at a recent event, Mr Khan said Morgan Stanley Capital International (MSCI) would resume regular reviews of Bangladesh's index from November this year following the removal of floor prices on the remaining two stocks — Beximco and Islami Bank — in July.

Regular MSCI reviews, coupled with easier repatriation of dividends, could help restore overseas investors' confidence in the market and attract fresh foreign capital.

Meanwhile, Prime Minister Tarique Rahman met Wall Street’s leading investors and asset managers in New York on Friday, urging them to invest in Bangladesh to take advantage of the country’s growth potential.

The meeting, hosted by leading global investment bank JPMorgan, brought together executives from BlackRock, PIMCO, TPG, Jane Street, Macquarie, GoldenTree Asset Management and MetLife, along with representatives of several private capital firms, according to media reports.

The capital market ended the week in the red as investors, who had hoped for monetary easing to boost the bourse, were disappointed by Bangladesh Bank's decision to leave its key policy rate unchanged.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) fell 17 points, or 0.31%, to close at 5,578. The blue-chip DS30 index lost 10 points to settle at 2,112.

Decliners outnumbered gainers, with 190 issues falling, 141 rising and 57 unchanged. Turnover at the DSE dropped 11% to Tk756 crore, indicating weaker participation from both retail and institutional investors.

Brokerage firms cited the central bank's rate decision as the main trigger for the pullback.

In its daily review, Sheltech Brokerage Limited said profit-taking picked up as sentiment weakened following the monetary policy stance. Early buying lifted the DSEX to an intraday high of 5,631, but heavy selling soon took over and pushed the index down to an intraday low of 5,578, near which it closed.

EBL Securities said the market lacked conviction about the sustainability of its recent uptrend. The index held steady in the opening hour, but sustained profit-booking wiped out early gains, and a later rebound attempt was not strong enough to withstand widespread selling.

The market reaction came shortly after Bangladesh Bank decided to hold its policy rate steady at 9.5% at the Monetary Policy Committee (MPC) meeting, chaired by Governor Mostaqur Rahman on 23 September. The central bank opted for a cautious stance to assess the macroeconomic fallout from recent domestic and international shocks, including volatile global energy markets caused by prolonged Middle East conflicts and the government's recent domestic fuel price hike.

While the committee acknowledged a downward trend in headline inflation, consumer price growth remains above the target ceiling of 7.50% for FY27. Furthermore, the committee identified the implementation of a new national pay scale as another potential inflationary headwind, prompting the monetary authority to prioritise price stability and monitor impact on inflation and GDP growth before considering rate cuts.

Banking sector heavyweights led the index downturn, with Pubali Bank, BAT Bangladesh, United Commercial Bank, BRAC Bank, and Eastern Bank emerging as the chief index draggers.

On the sectoral front, General Insurance captured the largest share of daily turnover at 17.8%, followed by Textile at 16.3% and Pharmaceuticals at 13.3%.

Most sectors closed in the red, with Travel and Ceramic both dropping 1.2%, and IT declining 1.1%. On the flip side, Mutual Funds and General Insurance bucked the trend, both posting 2% gains.

GQ Ball Pen emerged as the most-traded stock of the session, followed by IPDC Finance, Fine Foods, Square Pharmaceuticals, and BRAC Bank.

CNA Textile led the gainers' chart with a 10% jump, while Sena Insurance (9.97%), Orion Pharma (9.82%), Tung Hai Knitting (7.69%), and Emerald Oil (7.69%) also posted notable gains.

Conversely, Saiham Textile hit the losers' list hardest, slumping 6.68%, followed by Peoples Leasing, Khan Brothers PP Woven Bag, Premier Cement, and Meghna PET.

Over at the Chittagong Stock Exchange (CSE), performance diverged from the capital bourse. The selective CSCX index gained 17 points to close at 9,147, while the all-share price index, CASPI, jumped 41 points to settle at 14,912.

Stocks extended their winning streak for a second straight week as bargain hunters stepped in to snap up beaten-down shares, driving up the benchmark index.

But the recovery came under a fresh cloud as the government raised fuel prices by Tk 20 per litre, stoking fears of higher inflation, rising business costs and weaker corporate earnings.

The Dhaka Stock Exchange (DSE) saw three sessions, out of five, close higher, as investors selectively bought fundamentally strong and momentum-driven stocks. The remaining two sessions ended lower amid growing caution over the impact of higher fuel costs.

The benchmark DSEX gained 46 points, or 0.83 per cent, to settle the week at 5,578. It has gained a total of 63 points over the past two weeks.

Market participants said bargain hunting remained the main driver of the recovery, with investors returning to stocks that had suffered sharp corrections and were considered relatively attractive at current prices.

This week, the fuel-price hike emerged as a major concern. On Sunday night, the government raised the prices of all four major petroleum products by Tk 20 per litre, citing higher global fuel prices and freight costs amid the ongoing conflict in the Middle East.

"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 higher fuel costs could slow earnings growth for many listed companies in the coming quarters.

The hike is expected to raise transportation, logistics and production costs for businesses, putting further pressure on operating margins. Investors are also concerned that higher energy costs could fuel inflation and delay any meaningful easing of borrowing costs.

In its weekly market review, EBL Securities said stocks closed higher mainly on broad-based bargain hunting in perceived attractive scrips, although the sustainability of the recovery would depend on the resolution of prevailing economic concerns and a restoration of investor confidence.

The brokerage said concerns over the domestic fuel-price increase and its potential impact on inflation and corporate earnings triggered renewed caution in the market.

Still, selective buying in fundamentally sound and trending stocks helped the indices recoup some of their recent losses before a sell-off in the final session signalled a cautious approach among investors.

The DS30 index, which tracks blue-chip shares, rose 11 points to 2,112, while the Shariah-based DSES index gained nine points to 1,116.

Large-cap stocks provided significant support to the DSEX. Square Pharmaceuticals, LafargeHolcim Bangladesh, Orion Infusion and Mutual Trust Bank together contributed more than 18 points to the weekly rise in the benchmark index.

Trading activity picked up sharply as investors returned to selected beaten-down shares. Total turnover on the DSE rose to Tk 39.30 billion during the week from Tk 27.74 billion in the previous week.

Average daily turnover jumped 42 per cent to Tk 7.85 billion from Tk 5.55 billion, signalling a significant increase in trading participation.

The textile sector dominated turnover, accounting for 20.5 per cent of total trading activity, followed by general insurance with 15.5 per cent and pharmaceuticals with 13.1 per cent.

Market breadth remained firmly positive, with 252 issues advancing against 105 declining, while 29 remained unchanged.

The mutual fund sector led the sectoral advance, gaining around 6 per cent. Non-bank financial institutions, pharmaceuticals, engineering, telecommunications and power also posted gains.

Eastern Bank emerged as the week's most-traded stock, with shares worth Tk 1.10 billion changing hands. Sharp Industries, Square Pharmaceuticals, IPDC Finance and Saiham Textile followed in terms of turnover.

The Chittagong Stock Exchange (CSE) also ended the week higher. Its All Share Price Index (CASPI) rose 176 points to close at 14,912, while the Selective Categories Index (CSCX) gained 125 points to 9,148.

Washington and Beijing may have bought themselves breathing space with an extended trade truce, but analysts warn that time is running out for the world’s two biggest economies to resolve their strategic rivalry.

President Donald Trump and Chinese counterpart Xi Jinping concluded a pomp-filled summit Friday, with the US leader confirming they would meet twice more this year.

But even as Trump and Xi “are making nice,” their countries “remain locked in a bitter competition over trade, tech, Taiwan, defense, rare earths and industrial policy,” said Daniel Russel of the Asia Society Policy Institute.

Daniel Kritenbrink, a former US official now with The Asia Group consultancy, said there’s “no doubt that both leaders would like to see stability in the relationship, at least through the end of the year.”

However, “you’d have to see further tangible outcomes for this truce to extend in the long run.” Some feel Beijing has “largely not lived up to the commitments it made” at earlier meetings, he added, noting many US officials “have articulated their profound frustration with the Chinese.”

Xi and Trump agreed to a trade truce last year during a meeting in South Korea, after a bitter tit-for-tat fight that saw tariffs soar over 100 percent at one point.

As part of the agreement, Beijing agreed to buy more US soybeans and other agriculture products, and to suspend rare earths restrictions for a year.

The pact was originally due to expire in November but both sides agreed this week to extend it until January 10, US Treasury Secretary Scott Bessent said.

Trump’s top trade official Jamieson Greer told CNBC on Friday that Washington views such extensions as “compliance periods.” “I think US officials would say China is doing just barely enough to maintain the agreement and no more,” Kritenbrink said.

“That’s unsustainable over the long run,” he added.

The brief extension “was the preferred position of the Americans,” Mary Lovely of the Peterson Institute for International Economics told AFP.

She added that while Beijing would have preferred a longer rollover, the current situation points to Washington’s anxiety about the delivery of rare earth magnets and how officials “want to keep this on a short leash.”

“It’s not clear anymore how much their threats of high tariffs actually move China,” she said. For now, Greer said that both countries have made “progress” on other economic outcomes and expect to release more details Monday.

“We want to have some subset of goods that we can trade with the Chinese on a more preferential basis,” he said.

He added that both sides have agreed on products that can be left aside in future trade disputes.

Greer is set to host G20 trade ministers in Wisconsin next week, with US tariff threats and the issue of excess capacity -- a key concern surrounding Chinese industry -- expected to be discussed.

Washington and Beijing have also agreed to set up some kind of notification system for artificial intelligence threats between the two countries, Bessent said.

Peter Richardson of Counterpoint Research said the channel could be as simple as a hotline, but it will be tough to define what triggers it.

“It is often very difficult to tell quickly whether an AI incident was state-directed, a rogue actor or an accident,” he said.

“Given the rivalry we don’t expect this to lead to any comprehensive international framework for AI regulation, but it would be the first practical guardrail,” he added.

Kritenbrink, for his part, said the summit has done “nothing to curb the competitive instincts of both sides on AI.”

“I don’t think you’ll see any slowing down.”

Bangladesh has been registering a gradual decline in foreign tourist arrivals over the last two years amid political turmoil, security concerns and inadequate infrastructure and services.

The country recorded 239,400 foreign tourist arrivals in the first six months of 2026, down around 20 percent year-on-year, according to data from the Special Branch of Police and Bangladesh Bank, compiled by the Bangladesh Bureau of Statistics.

This is the second consecutive year of decline since Bangladesh welcomed more than 667,000 foreign visitors in 2023. The country received 585,145 foreign visitors in 2025, down 4 percent year-on-year.

HM Hakim Ali, president of the United Tourism Stakeholders’ Society of Bangladesh (UTSSOB), said Bangladesh is failing to attract foreign tourists despite its natural attractions because it is not adequately prepared to receive international visitors.

“We need to bring foreign tourists and earn from outside,” he said.

The decline in inbound tourism also comes at a cost to foreign-currency earnings, particularly as around two million Bangladeshis travel abroad each year.

“Countries such as China and Vietnam are making it easier for Bangladeshis to obtain visas because they understand the value of this market. We need to think about how to bring money into the country, not just how to stop money from going out,” he said.
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Hakim said Bangladesh needs better marketing, roads, communication, clean toilets, restaurants and maintenance of tourist attractions.

Md Taslim Amin Shovon, chief executive officer of Innoglobe Travels and Tours, said political turmoil and security concerns were major reasons behind the decline in tourist arrivals.

“Many embassies earlier raised travel alerts regarding travelling to our country. They are yet to give any green signal,” he said.

“The situation has worsened over the last two and a half years,” he added.

“We do not know what is going to happen. We are really worried,” Shovon said. “We do not have any projection of good business.”

Shovon said they had urged the government to introduce e-visas and set up a dedicated desk to provide services to foreign tourists on arrival. It takes a lot of time for foreign tourists to get clearance at the airport, he added.

Santus Kumar Deb, a tourism expert and professor in the Department of Tourism and Hospitality Management at the University of Dhaka, said Bangladesh needs to improve price, quality and service to become more competitive.

“Nearly 90 percent of our tourists are domestic, while only 10 percent are international,” he said.

Bangladesh also needs stronger digital branding, including AI-based storytelling, QR codes and short promotional videos to highlight lesser-known destinations, Deb said. E-reservations, e-visas, self-check-in and cashless transactions could also improve the visitor experience.

Better coordination among government agencies, stronger security and greater involvement of local communities are also needed.

The government is turning to digital technology and artificial intelligence as part of its efforts to revive tourism. The official theme of World Tourism Day 2026 is “Digital Agenda and Artificial Intelligence to Redesign Tourism”.

Fahmida Akhtar, secretary of the civil aviation and tourism ministry, said the government wants to raise tourism’s contribution to GDP to 7 percent from the current 2-3 percent.

The government is also updating the tourism master plan and preparing a tourism satellite account to measure the sector’s contribution.

Mutasim Billah Faruqui, chief executive officer of the Bangladesh Tourism Board, said the government would strengthen international promotion by engaging foreign diplomats, bloggers, influencers and journalists and participating in overseas tourism fairs.

Bangladesh Bank’s board of directors has agreed to grant initial approval to five digital banks, paving the way for the central bank to issue Letters of Intent (LoIs) to the proposed lenders.
The banks will be able start online operations after completing the necessary formalities following the issuance of the LoIs.

The decision was made at a meeting of the central bank’s board of directors held on Thursday, chaired by Governor Md Mostaqur Rahman.

The digital banks that received initial approval are Digital Banking of Bhutan, sponsored by Bhutan’s DK Bank; bKash Digital Bank, sponsored by the shareholders of bKash; Nova Digital Bank, backed by VION, the parent company of Banglalink, and Square Group; and Boost Digital Bank, sponsored by Axiata Limited, the parent company of Robi.

The board also decided to issue an LoI to Kori Digital Bank, which had already received initial approval earlier.

Bangladesh Bank invited applications for setting up digital banks during the tenure of the interim government. A total of 13 entities submitted applications.

The applicants included leading business groups, microfinance institutions, mobile network operators and mobile financial service (MFS) providers.

The central bank accepted applications for digital bank licences from September 1 to November 2, 2025.

However, the approvals could not be granted during the interim government’s tenure amid various issues, including protests by Bangladesh Bank officials.

The latest board decision will allow the approved entities to proceed with the next stage of the licensing process before launching their digital banking operations.

Foreign investors are showing renewed interest in Bangladesh's stock market in September, with their purchases exceeding sales and signalling a tentative shift in sentiment after years of sustained withdrawals from the country's capital market.

Foreign investors bought shares worth around Tk250 crore and sold about Tk180 crore between 1 and 24 September, leaving a net investment of roughly Tk70 crore, according to Dhaka Stock Exchange (DSE) data.

The latest figures come after a prolonged period of weak foreign participation, which market insiders attributed to regulatory intervention, political uncertainty, geopolitical instability, currency depreciation and difficulties in repatriating funds.

A managing director of a brokerage firm said the Dhaka bourse was finally seeing an increase in foreign investment in September after a long period of selling pressure.

"Following the national election and the formation of the new government, regulatory easing and commitments from government authorities have helped attract foreign investors back to the capital market," he said.

The buying trend has been visible on most trading days this month. Foreign investors bought more shares than they sold on 13 trading days between 1 and 24 September, while selling exceeded buying on only two days, according to DSE data.

Market participants said the removal of the floor price, along with a series of regulatory reforms, has helped improve the investment environment.

A senior DSE official said the new securities regulator under the BNP-led government had removed the floor price and introduced several measures aimed at making the market more flexible.

The Bangladesh Securities and Exchange Commission (BSEC) has also revised initial public offering rules and drafted direct listing rules for fundamentally sound companies and foreign companies seeking to list on the local exchange. The regulator has revised margin rules, signalling a move towards easing regulatory hurdles.

"The BSEC has also assured market participants that it will not interfere in the market unnecessarily," the DSE official said, describing the changes as a positive development for the capital market.

Another factor supporting foreign investor sentiment is the planned return of Bangladesh to the regular review process of global index provider MSCI.

MSCI said in its August Equity Index Review that it would resume the implementation of index review changes and corporate events for the MSCI Bangladesh Indexes from the November 2026 index review. The decision marks a move towards normalisation after MSCI placed Bangladesh under "special treatment" in 2023 amid disruptions associated with the floor price mechanism.

MSCI's special treatment mechanism allows the index provider to modify or suspend its standard review procedures for markets or securities facing significant disruptions. The resumption of regular reviews is therefore being viewed by market participants as a step towards restoring Bangladesh's standing among international portfolio investors.

Regulatory changes by Bangladesh Bank (BB) have also reduced some of the operational hurdles faced by overseas investors.

In March, the central bank raised the threshold for prior approval of capital repatriation by foreign investors to Tk100 crore from Tk10 crore. The measure was intended to simplify the repatriation process and bring the regulatory framework closer to international practices.

BB subsequently removed another major compliance hurdle by scrapping the requirement for an auditor's certificate for every transaction by non-resident investors.

Under the new arrangement, authorised dealer banks can deduct or withhold applicable taxes on capital gains directly from the sale proceeds of shares or securities held by non-resident investors. The proceeds can then be credited to the investors' Non-Resident Investor Taka Accounts, or NITAs, before payment of the applicable taxes to the government.

Previously, investors were required to obtain a chartered accountant's certificate for individual transactions to determine capital gains tax before proceeds could be reinvested or repatriated. Market participants said the process often caused delays and increased compliance costs.

The improvement in September follows fluctuating foreign participation throughout the year. Foreign turnover stood at Tk663 crore in February, before falling to Tk272 crore in March, Tk175 crore in April and just Tk73.92 crore in May. It then increased to Tk540 crore in June and Tk523 crore in July before declining to Tk318 crore in August. Foreign turnover reached around Tk400 crore in the first 24 days of September, according to DSE data.

Despite the recent improvement, foreign participation remains relatively small compared with the overall size of the market. Foreign investment in Bangladesh's stock market currently stands at around Tk13,000 crore, while only about 132 of roughly 360 listed companies have some level of foreign shareholding.

BRAC Bank has the highest foreign ownership among listed companies at around 35%, followed by Olympic Industries with more than 25%. Beximco Pharmaceuticals, Navana Pharmaceuticals, Square Pharmaceuticals and Renata are among the other companies with significant foreign shareholdings.

According to the Central Depository of Bangladesh, the non-resident accounts (Beneficiary Owners Accounts) stood at 41,937 at the end of 24 September.

Banks' consumer finance increased by Tk 53.63 billion, or 3.4 per cent, in the April-June quarter of 2026 from the previous quarter amid subdued demand for private- sector credit.
Consumer finance stood at Tk 1.64 trillion at the end of June, up from Tk 1.58 trillion three months earlier, according to the Bangladesh Bank data.

The quarterly growth, however, slowed from 4.35 per cent in the January-March quarter, when consumer finance rose by Tk 66.0 billion to Tk 1.58 trillion from Tk 1.51 trillion.

Consumer finance accounted for 9.05 per cent of banks' total loans and advances at the end of June, compared with 8.88 per cent three months earlier.

The quarter-on-quarter growth was driven mainly by higher borrowing for TV, fridge, air cooler, computer, furniture, housing, personal loan, marriage loan, credit card, land purchase, and other personal financing.

Loans for consumer goods like TV, fridge, air cooler, computer, and furniture increased to Tk 350.10 billion from Tk 345.36 billion.

Loans for purchasing flats and apartments increased to Tk 372.24 billion in the April-June quarter from Tk 320 billion in the previous quarter.

Credit card loans climbed to Tk 138.77 billion from Tk 135.19 billion, while loans for land purchases increased to Tk 76.88 billion from Tk 71.81 billion.

Financing for motor vehicles and motorcycles also rose to Tk 69.41 billion from Tk 63.74 billion.

Loans for marriage expenses rose to Tk 1.05 billion from Tk 0.94 billion.

Personal loans against DPS, MSS, etc. also increased to Tk 53.56 billion from Tk 50.73 billion.

One of the sharpest increases was recorded in personal loans secured against fixed deposits and other savings instruments, which jumped to Tk 290.28 billion from Tk 276.25 billion.

Doctors' and professional loans edged up to Tk 11.35 billion from Tk 10.63 billion, while loans against provident funds rose to Tk 18.87 billion from Tk 17.50 billion.

The rise came despite continued weakness in overall credit demand as businesses and households remained cautious about taking new loans amid elevated borrowing costs and economic uncertainty.

According to the central bank data, banks' total economic purpose loans and advances stood at Tk 18.09 trillion at the end of June, up from Tk 17.84 trillion in March, indicating a quarterly increase of around Tk 250 billion.

The relatively moderate growth in consumer finance suggests that household borrowing continued to expand during the quarter, although the pace remained below that recorded in the previous quarter.

Bankers say consumer loans are increasingly being used to finance essential spending rather than discretionary purchases as many households seek credit to cover education, healthcare, marriage, travel, and other day-to-day expenses amid persistent inflation and erosion of purchasing power.

They also note that banks have expanded their consumer lending portfolios as demand remains resilient despite relatively high lending rates.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, says rising living costs and persistent inflation are prompting more people to rely on consumer loans to meet everyday expenses.

Banks are also diversifying their loan portfolios by expanding consumer lending as private sector credit growth remained below 5.0 per cent amid weak demand for business loans, he says.

At the same time, lenders have stepped up promotional activities to attract retail borrowers, he also says.

Economists, however, warn that while consumer credit can provide short-term financial relief to households, excessive reliance on borrowing could increase debt burdens and financial vulnerability over time.

They also caution that if a growing share of bank lending continues to flow into consumption rather than productive sectors, it could undermine private investment, employment generation, and long-term economic growth.

Dr Masrur Reaz, chairman of Policy Exchange Bangladesh, says the 3.4 per cent quarterly rise in consumer finance indicates that household credit demand has remained somewhat resilient despite the broader economic slowdown.

However, the growth should not yet be interpreted as a strong recovery in consumer demand as Bangladesh is still dealing with elevated inflation, weak private sector investment, subdued business activity, and pressure on real household incomes, he says.

He says a stronger recovery in consumer finance would depend on sustained disinflation, improvement in real incomes and consumer confidence, and a revival in overall economic activity.

Banks also need to maintain prudent credit assessment so that faster growth in consumer lending does not create additional asset quality risks, he adds.

The government has released Tk10,300 crore in subsidies for liquefied natural gas (LNG) imports in the first three months of the current fiscal year, as Bangladesh has increasingly relied on costly spot-market cargoes after disruptions to long-term supplies amid the Iran-US war and its regional fallout.

The latest Tk3,000 crore tranche was released on 21 September, taking total LNG subsidy disbursement for July-September to Tk10,300 crore, according to Petrobangla figures.

The amount is equivalent to 70.5% of the Tk14,600 crore subsidy spent on LNG imports during the entire FY2025-26. It is also 71.7% higher than the Tk6,000 crore originally allocated for LNG subsidy last fiscal year.

Petrobangla data show that the government has provided about Tk20,900 crore in LNG subsidy since 17 February, when the current government took office, through 21 September.

The rapid rise in subsidy created a widening gap between the cost of imported LNG and the price at which gas is sold domestically.

During July-September, the blended average cost stood at Tk46.40 per cubic metre, against a weighted average sales price of Tk23.90, leaving a gap of Tk22.50 per cubic metre, which is being paid as a subsidy.

LNG subsidy nearly triples to Tk16,600cr amid Iran war supply shock
War pushes Bangladesh into expensive spot market

The subsidy burden began rising sharply following the Iran-US war, which disrupted LNG shipments from the Middle East to Asia and effectively choked the Strait of Hormuz, through which a significant share of global LNG trade normally passes.

QatarEnergy, Bangladesh's largest LNG supplier, declared force majeure while OQT of Oman and Excelerate also followed the suit forcing the Petrobangla to replace contracted cargoes with spot-market purchases to keep gas flowing to power plants, industries and other consumers.

"The Iran war cost us an additional Tk10,600 crore as most long-term suppliers have maintained force majeure since March, forcing us to rely on expensive spot purchases," said AKM Mizanur Rahman, director (finance) of Petrobangla.

The disruption has fundamentally changed Bangladesh's LNG procurement mix.

Before the conflict, the country relied heavily on relatively predictable long-term supplies from Qatar and Oman.

With those supplies disrupted, Petrobangla had to repeatedly go to the spot market, where prices are determined by tight global supply and demand conditions.

The financial pressure has intensified as spot LNG prices have moved far above pre-war levels.

Before the conflict, Bangladesh generally bought spot LNG at around $10-$12 per MMBtu.

By August, some cargoes were being approved at more than $21-$22/MMBtu, while September cargoes were contracted at $24.25-$24.63/MMBtu.

More recent emergency purchases have crossed $26-$28/MMBtu, with some cargoes approaching $30/MMBtu.

Bangladesh has been among the countries seeking supplies from West Africa, Indonesia, North America and other regions as buyers diversify away from disrupted Middle Eastern supply routes.

The government had initially allocated Tk6,000 crore for LNG subsidies in FY2025-26, but the final requirement rose to Tk14,600 crore as the cost of emergency and spot purchases increased.

Subsidy pressure likely to remain

The current subsidy expenditure also highlights the widening mismatch between Bangladesh's LNG import cost and domestic gas pricing.

The per cubic metre blended gas price as of September stands at Tk46.40. But the average weighted sale price during July-September was Tk23.90.

The Tk22.50 per cubic metre gap has to be covered through the government's subsidy support to Petrobangla.

With international LNG prices still elevated and geopolitical risks continuing around the Middle East, the subsidy requirement could remain under pressure in the coming months.

The scale of spending is particularly striking because Tk10,300 crore has been disbursed in only three months – roughly 71% of the entire Tk14,600 crore LNG subsidy bill for FY2025-26.

Last year's subsidy had already risen sharply from the original allocation because of higher import costs and increased reliance on spot purchases.

The latest figures suggest that the fiscal pressure from LNG imports is no longer confined to an exceptional period during the initial supply shock; the higher cost of securing replacement cargoes is continuing into the current fiscal year.

Subsidy history

Petrobangla's data show that the government's LNG import subsidy has increased sharply since Bangladesh began importing LNG.

The subsidy stood at Tk2,500 crore in FY2018-19, rising to Tk3,600 crore in FY2019-20 and then falling to Tk2,400 crore in FY2020-21.

It increased significantly to Tk6,000 crore in FY2021-22, before reaching Tk6,365.12 crore in FY2022-23.

The subsidy stood at Tk6,000 crore in FY2023-24 and then rose to Tk8,900 crore in FY2024-25.

The amount surged further to Tk14,600 crore in FY2025-26.

Overall, the annual LNG subsidy increased by about 143% in just two years, from Tk6,000 crore in FY2023-24 to Tk14,600 crore in FY2025-26.

Supply crisis leaves little room to cut imports

Despite the higher prices, Petrobangla cannot simply reduce LNG imports without risking a further deterioration in gas supply.

Gas-fired power plants remain heavily dependent on imported LNG, while domestic gas production has been declining.

The government has therefore continued procuring cargoes even when spot prices have surged.

In July, Bangladesh imported 11 LNG cargoes, while procurement continued at a high level in August and September.

Officials said most of the cargoes were secured from the spot market to compensate for shortages in long-term and short-term supplies.

As a result, the government has effectively faced a choice between paying substantially more for LNG or reducing imports and risking lower gas supplies to power plants and industries.

Red Sea risks add another layer

The pressure has been compounded by growing security risks around the Bab el-Mandeb Strait, another major maritime chokepoint connecting the Red Sea with the Indian Ocean.

This strait carries 8% to 10% of Qatari LNG.

While the waterway has not been completely shut, vessel traffic has fallen amid renewed attacks and threats linked to the wider Middle East conflict.

The prospect of disruption has raised concerns over longer shipping routes, higher freight costs and tighter availability of energy cargoes.

For Bangladesh, the simultaneous disruption risks around Hormuz and Bab el-Mandeb are particularly significant because the country depends heavily on imported energy, said Petrobangla officials.

Any prolonged disruption can force LNG and other fuel suppliers to use longer routes, increasing freight, insurance and other logistics costs.

The threat around Bab el-Mandeb has added another layer of uncertainty to an LNG market that was already under pressure from the loss of contracted Middle Eastern supplies.

Bangladesh and Kuwait have discussed expanding manpower exports, trade and investment as the two countries seek to deepen economic cooperation.
Prime Minister Tarique Rahman and Kuwait’s Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah held a bilateral meeting at Kuwait’s Permanent Mission in New York on Friday, on the sidelines of the 81st session of the United Nations General Assembly (UNGA).

The two leaders exchanged views on ways to strengthen economic ties, with a focus on increasing manpower exports, expanding bilateral trade and investment, and broadening cooperation in areas of mutual interest.

Mr Rahman emphasised the need to enhance high-level engagement between the political leaderships of the two countries to advance their longstanding relationship and explore new avenues of economic cooperation.

He also highlighted the historical friendship between Bangladesh and Kuwait, recalling the contributions of former president Ziaur Rahman and former prime minister Khaleda Zia to developing bilateral relations.

The prime minister said the foundation of mutual respect, goodwill and cooperation between the two countries had continued to expand over the years.

He stressed the importance of deepening and diversifying the relationship for the mutual benefit of the peoples of both countries.

The two leaders also discussed regional and international issues and underscored the need to maintain regular communication and coordination on matters of mutual interest.

They expressed their commitment to further strengthening bilateral cooperation for the benefit of the peoples of Bangladesh and Kuwait.

Bangladesh’s local mobile handset industry is under fresh pressure from rising prices of memory components, adding to longstanding problems such as grey-market competition, weak factory utilisation and uncertainty over regulatory enforcement.

Prices of key smartphone components, particularly RAM and ROM, have risen sharply this year, raising production costs for local manufacturers and threatening to make budget smartphones more expensive.

At the same time, local handset production is declining as manufacturers struggle to compete with unofficial imports and operate their factories at full capacity.

Industry players say effective enforcement of the National Equipment Identity Register (NEIR), along with stable tax and regulatory policies, is crucial to restoring competitiveness.

“The biggest challenge today is the global surge in component costs,” said Ziauddin Chowdhury, country general manager of Xiaomi Technologies Bangladesh. He said rising memory-chip prices, driven partly by the rapid expansion of artificial intelligence technologies, were putting “significant pressure on the affordability of entry-level and budget segments”.

Gartner estimates that combined DRAM and solid-state drive prices could rise 130 percent by the end of 2026 from 2025 levels, potentially increasing smartphone prices by 13 percent.

Rezwanul Hoque, CEO of Ismartu Technology BD Ltd, said memory prices had risen 70 percent since January and could climb another 40 percent over the next three months.

Jakaria Shahid, president at the Mobile Phone Industry Owners’ Association of Bangladesh (MIOB), said global memory supplies were very tight, pushing up prices in the unofficial market as well.

The higher component costs come as local production is already losing momentum.

BTRC data show smartphone production fell 9.9 percent year-on-year to 53.76 lakh units in January-August 2026 from 59.66 lakh a year earlier. Feature-phone production dropped 9.6 percent to 85.66 lakh units from 94.73 lakh.

Local manufacturers produced about 2.44 crore handsets in 2025, down from roughly 2.73 crore in 2024.

The Daily Star spoke to half a dozen manufacturers’ officials, who said their factories were operating at less than half capacity. One manufacturer with more than 10 production lines has half of them idle, while monthly output has fallen to around 100,000 units from a capacity of 300,000.

GREY MARKET UNDERMINES LOCAL INDUSTRY

Industry estimates suggest the grey market accounts for more than 60 percent of handset sales, putting local manufacturers at a disadvantage and reducing government tax revenue.

Mohammad Saifuddin Khan, director of operations at Excel Telecom, which manufactures Samsung handsets in Bangladesh, said legal manufacturers were being forced to compete with products that did not bear the same tax and regulatory costs.

The National Equipment Identity Register (NEIR), which uses handsets’ IMEI numbers to identify unauthorised, cloned and illegally imported devices, began enforcement on January 1 this year.

Manufacturers say effective NEIR enforcement could redirect demand towards official channels and help local factories operate at higher capacity.

However, the feature of NEIR that could block such illegal phones has not yet become fully operational. Meanwhile, the rollout has also faced resistance from mobile-phone traders.

Rehan Asif Asad, adviser to the prime minister on posts, telecommunications and ICT, has said the government wants to strengthen the electronics manufacturing ecosystem while ensuring that consumers, retailers and manufacturers are not adversely affected.

SCALE REMAINS A CHALLENGE

Bangladesh’s handset manufacturers remain heavily dependent on imported components, including memory, processors and displays, leaving them with limited control over production costs.

“The major 60 to 70 percent portion of the component cost is controlled by a handful of three or four companies,” said Saifuddin.

More than half of Bangladesh’s smartphone market is concentrated in the Tk 15,000-Tk 20,000 range, according to industry estimates, making higher component prices particularly significant for consumers.

Manufacturers say higher production volumes could reduce per-unit costs by spreading fixed expenses across more units. But weak demand and grey-market competition have made it difficult to achieve the scale needed to improve efficiency and factory utilisation.

Fair Electronics, whic used to manufacture mobile phones, plans to resume handset production in the second half of this year.

Mohammed Mesbah Uddin, CMO of Fair Group, said the company would initially produce selected models. They did not expect to immediately return to its previous scale of around 15 lakh handsets a year -- which they used to make back in 203, when its mobile operation employed 2,000-2,500 people.

POLICY STABILITY SOUGHT

Manufacturers are also seeking greater certainty over taxes, duties and incentives.

The handset manufacturing sector expanded after tax incentives were introduced in fiscal 2017-18, with around 17 factories established since then. However, industry players say changes in taxes and duties have increased uncertainty over investment.

The government has recently taken steps to reduce production costs. In the FY2026-27 budget, it reduced advance income tax on imports of 22 raw materials used in local mobile-phone manufacturing to 1 percent. Existing duty exemptions on raw materials and components, along with conditional VAT exemptions, were extended until June 2030.

Ziauddin welcomed the extension but stressed the importance of policy continuity.

“Incentives attract investment, but it is policy stability that retains it,” he said, arguing that major policies supporting the industry should ideally have a minimum five-year horizon.

Manufacturers say effective implementation is equally important, as bureaucratic complexities sometimes prevent them from fully benefiting from government measures.

Investor activity on the Dhaka Stock Exchange (DSE) surged last week, with average daily turnover jumping 42% despite persistent macroeconomic headwinds, a fuel price hike and disappointment over the unchanged policy rate.

Average daily turnover at the country's premier bourse rose to Tk785 crore from the previous week's sluggish level. The benchmark DSEX gained 46 points, or 0.83%, to close at 5,578, while the blue-chip DS30 advanced 10 points to 2,112.

Market breadth was positive, with 252 issues advancing, 105 declining and 29 remaining unchanged. However, total market capitalisation fell by Tk1,800 crore over the week.

Sheltech Brokerage Limited, in its weekly market commentary, said trading was marked by a tug-of-war between selective bargain hunting and profit-taking amid mixed investor sentiment.

Buying interest early in the week was supported by Moody's revision of Bangladesh's economic outlook from negative to stable and reports of improved national gas supply. Expectations of fiscal year-end earnings and dividend declarations by June-closing companies also provided momentum.

The rally came under pressure mid-week after the government raised domestic fuel prices amid continued geopolitical tensions between the US and Iran. Sentiment weakened further towards the weekend after Bangladesh Bank kept its policy interest rate unchanged, disappointing investors who had expected monetary easing.

Sheltech analysts said investors will closely watch whether the renewed buying momentum broadens across sectors. Near-term market drivers include regulatory progress on the Bangladesh Securities and Exchange Commission's (BSEC) proposed market development initiatives, developments in the Middle East and corporate financial results for the June-ending fiscal year.

Square Pharmaceuticals, Orion Pharma, LafargeHolcim Bangladesh, Orion Infusion and Unique Hotel were the biggest contributors to the DSEX's gain.

Textile stocks accounted for the largest share of turnover at 20.50%, followed by Insurance at 17.20%, Pharmaceuticals and Chemicals at 13.23%, Mutual Funds at 8.89% and Banks at 8.25%.

Mutual Funds recorded the highest sectoral return, rising 6.12%, followed by Paper and Printing at 4.18%, General Insurance at 3.82% and Life Insurance at 3.14%. Engineering fell 0.83%, Food and Allied 0.60% and Banking 0.56%.

Eastern Bank, Sharp Industries, Square Pharmaceuticals, IPDC Finance and Saiham Textile were among the most-traded stocks during the week.

First Prime Finance Mutual Fund topped the gainers, surging 50%, followed by ICB AMCL Second Mutual Fund with a 33.33% rise. Desh General Insurance gained 30.46%, Orion Infusion 23.02%, and Orion Pharma 19.84%.

Walton led the weekly losers, falling 12.95%, while Anlyma Yarn, Exim Bank First Mutual Fund, Bay Leasing and Al-Haj Textile declined between 6.40% and 6.76%.

The Chittagong Stock Exchange also ended the week higher, with the selective CSCX index gaining 1.39% to 9,147 and the all-share CASPI advancing 1.19% to 14,912.

Textile companies dominated the Dhaka Stock Exchange (DSE) turnover chart in the first half of September, with three firms each recording more than Tk200 crore in share trades, according to the bourse's fortnightly report.

Sharp Industries, a B-category company, topped the turnover chart among the DSE's top 20 stocks, followed by A-category Malek Spinning Mills and Envoy Textile. B-category Saiham Textile and Saiham Cotton Mills, and A-category Paramount Textile also ranked among the top turnover generators.

Sharp Industries recorded Tk245.86 crore in trading value, accounting for around 4% of the DSE's total turnover during the period. It also topped the volume chart, with 12.04 crore shares changing hands, or 5.44% of all traded shares.

Malek Spinning Mills recorded Tk213.62 crore in turnover, followed by Envoy Textile at Tk208.27 crore, Saiham Textile at Tk201.24 crore, Saiham Cotton Mills at Tk190.05 crore and Paramount Textile at Tk159.57 crore.

During the 11 trading sessions through 15 September, total DSE turnover stood at Tk6,382.80 crore, with average daily turnover at Tk580.25 crore.

The benchmark DSEX index fell 125.62 points to close at 5,598 on 15 September.

In terms of share prices, Bangladesh National Insurance emerged as the top gainer, with its share price rising 29.84% to Tk138.80 from Tk106.90 at the start of September.

It was followed by Phoenix Finance First Mutual Fund, up 28.68% to Tk17.50; Exim Bank First Mutual Fund, up 25.42% to Tk7.40; Mercantile Islami Insurance, up 24.75% to Tk50.40; and AIBL First Mutual Fund, up 22.92% to Tk5.90.

Sharp Industries, despite leading turnover, suffered the biggest decline among the top 20 stocks, with its share price falling 23.43% to Tk18.30.

Information Services Ltd followed with a 23.12% decline to Tk42.90, while Orion Infusion fell 19.72% to Tk176.70.

Rancon Motor Bikes Ltd, the authorised manufacturer and exclusive country distributor of Suzuki motorcycles in Bangladesh, has signed an agreement as part of its proposed public listing.

Under the deal, Lion City Advisory Limited (LCAL) will serve as adviser, while CBC Capital and Equity Management Limited will act as issue manager, according to a press release.

The agreement was signed at Rangs Babylonia in Tejgaon, Dhaka on Wednesday.

According to sources involved in the issue management, Rancon Motor Bikes may apply for listing under the direct listing process. It would be the first sole two-wheeler maker in the capital market to go public.

Earlier, Runner Automobiles was listed to expand its business, which includes manufacturing motorcycles and three-wheelers.

Rancon Motor Bikes Managing Director Romo Rouf Chowdhury and Lion City Advisory Limited Executive Director Ershad Hossain signed the agreement on behalf of their respective organisations.

Under the agreement, LCAL will provide corporate and capital market advisory services to Rancon Motor Bikes, while CBC Capital and Equity Management Limited will act as issue manager for the proposed listing.

Rancon Motor Bikes senior officials Ahsan Hakim, Farhana Karim, Imran Zaman Khan and Abu Jafar Siddique attended the signing ceremony.

Abdullah Al Faisal and other officials represented Lion City Advisory Limited, while Rabiul Hossain represented CBC Capital and Equity Management Limited.

The proposed listing will mark a step in the company's efforts to access Bangladesh's capital market and broaden its participation in the country's capital market ecosystem.

Lion City Advisory provides corporate advisory services to companies in Bangladesh and abroad.

According to data from City Lion Advisory, Suzuki branded two-wheelers become the market leader in the country with around 20% market shares until June 2026. Of the total 40,514 motorcycle sales, Suzuki branded motorcycles sold 8,215.

A further Tk 20 per litre increase in fuel prices has landed at a difficult time for most households in Bangladesh. It comes five months after the last major adjustment in April, followed by a smaller rise in June. Fuel prices have risen across much of the world following the conflict that began with US and Israeli strikes on Iran and subsequent tensions around the Strait of Hormuz. For Bangladesh, the impact is compounded by persistent domestic inflation.

For more than four years, Bangladesh has struggled to bring inflation down from rates close to 10 percent, against a longer-term average of around 5-6 percent. Before the Hormuz crisis, Bangladesh maintained relatively low domestic fuel prices compared with many other countries. Now the situation is such that while inflation stays elevated, the government is having to make substantial price adjustments given its acute fiscal space constraint, with the tax-GDP ratio falling below 8 percent.

Higher fuel costs would ripple through almost every economic activity, raising the cost of producing goods, transporting them to market and providing essential services

In fact, among the developing countries with which Bangladesh is commonly compared, its fuel price increase since the Hormuz conflict has been one of the largest, at around 38 percent, compared with less than 10 percent in India, 19 percent in China and 27 percent in Viet Nam. Indonesia has experienced a gasoline price rise nearly as large as Bangladesh’s, but inflation in Indonesia is much lower, at around 3.3 percent.

The dual blow of prolonged high inflation and steep fuel price increases falls on consumers, particularly poor and vulnerable households. It comes amid recent assessments suggesting that poverty in Bangladesh is likely to have risen substantially since the last official household survey in 2022.

Higher fuel costs would ripple through almost every economic activity, raising the cost of producing goods, transporting them to market and providing essential services. Poor households, small farmers, and enterprises with limited working capital have the least capacity to absorb the additional pressures, whether through higher prices, narrower margins or reduced consumption.

One may well ask how many more shocks households can bear when their real purchasing power has been declining for years. Yet, for several years now, the response to prolonged inflation has too often been delayed and half-hearted, without sufficient attention to the scale of the problem.

During the interim government’s tenure, efforts to control inflation relied heavily on demand management. Bangladesh Bank raised its policy rate and maintained a tight monetary stance, but liquidity support for troubled banks and rising government borrowing, particularly borrowing directly from the central bank, complicated that effort. Supply-side measures received less sustained attention.

After the February 2026 election, the new government recognised the importance of bringing inflation down. Its first budget, however, set an ambitious growth target and substantially higher spending. This was accompanied by a large stimulus package for struggling industries, significant provision for restructuring weak banks and, subsequently, approval of a new public-sector pay scale for phased implementation. Bangladesh Bank also reduced its policy rate by 50 basis points. Each measure responds to a real problem, but together they raise the question of whether the drive to revive growth is adequately reconciled with lowering inflation.

Spending out of the crisis is risky when inflation remains high and firms cannot readily expand production. Energy shortages and reliance on imported fuel constrain the supply response, while additional demand could put fresh pressure on prices and the foreign exchange reserves Bangladesh Bank is seeking to rebuild. This makes the supply constraints central to the inflation debate.

One principal element of the supply side deserves closer examination. Merchandise imports fell from a peak of $79 billion in FY22 to $68 billion in FY25. According to Bangladesh Bank’s provisional estimates, imports recovered substantially to $75 billion in FY26, though they remained below the FY22 level. Import compression may have contributed to supply shortages. The policy question is whether formal or informal barriers to importing essential goods and production inputs are unnecessarily restricting supply.

This question warrants a systematic comparison of prices for selected essentials in Bangladesh, international markets and, particularly, neighbouring countries, allowing for differences in exchange rates, quality, transport costs and taxes. Where substantial gaps persist, there is a need to examine whether tariffs, import permissions, access to foreign exchange or delays in opening letters of credit are restricting supply.

This is also an opportune moment to consider prudent tariff rationalisation, with particular attention to the widespread use of supplementary and regulatory duties. These duties can impede imports even where domestic producers are unable to increase supply sufficiently. Easing such constraints and facilitating imports could relieve price pressures.

The pressure to rebuild foreign exchange reserves makes import policy sensitive. Reserve accumulation remains essential, but the budget’s projection of $41 billion in gross reserves by the end of FY27 should be weighed against the costs of restricting imports. The objective should be to rebuild reserves without unnecessarily constraining the supply of essential goods and production inputs.

There is a fiscal dimension too. With weak revenue mobilisation, ambitious spending plans can mean greater government borrowing. Support for troubled banks, industrial stimulus and public-sector pay increases may each have a case, but their scale, timing and financing matter when bringing down inflation is already proving difficult. Price stability needs to carry greater weight in these decisions.

Stabilising the taka helps contain import costs and inflationary pressures. During high inflation, taka depreciation would only add fuel to the fire. However, if inflation remains high while the nominal exchange rate barely moves, the taka may appreciate in real terms, undermining export competitiveness.

For instance, as against Bangladesh’s average rate of 9-10 percent during FY23–FY26, India’s inflation fell from 6.7 percent to around 4 per cent; Viet Nam was able to contain it within 3-4 percent while China saw near-zero inflation. These differences must have put pressure on Bangladesh’s export competitiveness and contributed to its recent difficulty in expanding exports. Holding the nominal exchange rate steady cannot substitute for bringing inflation under control.

Finally, goods must move reliably from farms, ports and factories to markets. Extortion along transport routes, delays and other logistical obstacles add to costs and disrupt supply. Tackling them requires sustained enforcement, alongside better freight and market infrastructure. Without a more effective domestic supply chain, even adequate imports or harvests may fail to ease prices where consumers buy their essentials.

The fuel price increase has exposed a wider policy challenge. There is a critical need to protect vulnerable households now while addressing the import, fiscal and distribution constraints that have allowed high inflation to persist. Households cannot keep absorbing external shocks through a steady loss of real purchasing power. Nor can it be overemphasised that failure to rein in inflation is likely to have serious consequences for macroeconomic stability and external competitiveness.

The socioeconomic costs of persistent inflation are too high for price stability to be weakened by conflicting policy choices; tackling it requires sustained commitment and prudent, practical measures across the economy.

The author is an economist who serves as chairman of Research and Policy Integration for Development (RAPID). He can be reached at m.razzaque@rapidbd.org

The US has secured a 6 percent share of Bangladesh’s corn imports in the 2025-26 marketing year (MY), marking a re-entry into the market after eight years.

Bangladesh imported over 17.4 lakh tonnes of corn to meet the requirements of its feed industry, of which approximately 111,000 tonnes were of American origin in MY26, according to a report by the US Department of Agriculture (USDA) released early this month.

Brazil remained the largest supplier, accounting for 68 percent of Bangladesh’s total corn imports, followed by India at 24 percent, said the agency in its Grain and Feed Update on Bangladesh.

The share of Brazil in corn shipments, however, declined in MY26, which began in May. Bangladesh imported about 93 percent of its corn from Brazil in MY25, followed by 4 percent from Argentina and 2 percent from Pakistan, according to a previous USDA report.

The re-entry of US corn began after three Bangladeshi feed companies initiated the first purchase of approximately 60,000 tonnes, and the grain arrived at Chattogram port in the first week of January this year.

The development came amid broader trade engagement between Bangladesh and the US after Dhaka agreed to increase imports from the US to help narrow an annual trade gap exceeding $6.2 billion in its effort to avoid a high tariff on Bangladesh’s exports announced by the Trump administration as part of reciprocal tariffs. The US Supreme Court later ruled them illegal.

The US agency earlier said that, historically, India has been one of the major corn suppliers to Bangladesh due to its price competitiveness, efficient logistics and shorter shipment durations.

However, since 2024, India’s exportable surplus of corn has declined significantly as the country has increased corn-based biofuel production. As a result, Brazil has emerged as the leading supplier.

For the current MY27, Bangladesh’s private sector is expected to import 18 lakh tonnes of the grain, up 3.4 percent year-on-year. In the first three months of MY27, Bangladesh imported around 115,000 tonnes of corn, according to the latest report.

“Corn imports are expected to remain strong, supported by continued growth in Bangladesh’s poultry, aquaculture, and cattle feed industries. However, import volumes fluctuate from year to year depending on domestic corn production and market availability,” it said.

Over the past several years, Bangladesh has imported an average of approximately 15 lakh tonnes of corn annually. The US agency said corn is now the second-largest grain crop in Bangladesh in terms of acreage and production after rice, and farmers are increasingly cultivating corn due to its high yields and strong market prices that make it a profitable crop.

“As demand for livestock and aquaculture products continues to grow, corn production is expected to increase, with farmers adopting improved hybrid seeds and better farming techniques to maximise yields,” it said.

In Bangladesh, farmers grow corn in both the summer and winter seasons, with the USDA forecasting 60 lakh tonnes of production, an increase of 1.7 percent year-on-year.

However, domestic production alone cannot meet the requirement for the grain from feed mills that cater to the poultry, fisheries and livestock industries.

Bangladesh requires over 71 lakh tonnes of corn annually, and approximately 90 percent of local harvests are absorbed by animal feed manufacturers, as poultry feed relies primarily on corn as its main raw material.

For the current MY27, the USDA has kept its forecast for the country’s total feed and residual corn use at 72.5 lakh tonnes, up 2.1 percent from its estimate for MY26.

China said on Saturday it had agreed with the US on a $30 billion reciprocal tariff-reduction arrangement and on launching a dialogue on AI, under an eight-point consensus reached during President Xi Jinping's visit to Washington.

The two sides have also agreed to set up a trade council and extend the outcomes of earlier talks in Kuala Lumpur, the Chinese foreign ministry said.

The agreement follows an earlier move by the world's two largest economies to extend by two months a trade truce that had been due to expire on Nov 10, allowing more time to work on a potentially bigger trade deal, US Treasury Secretary Scott Bessent said on Wednesday, reports Reuters.

The three-day summit between Xi and President Donald Trump, which ended on Friday, showcased personal diplomacy rather than big public breakthroughs. Xi has since landed in Beijing, Chinese state news agency Xinhua reported on Saturday.

"This historic visit enriched the constructive and stable China-US relationship, upheld the overall stability of bilateral ties, opened a new chapter in China-US relations, and will have a far-reaching impact on world peace and development," Chinese Foreign Minister Wang Yi said in a statement.

Dialogue on AI

On artificial intelligence, the two sides agreed to hold a dialogue on the technology's risks and benefits, with the next round of discussions set for November, and to set up a communication channel for AI-related incidents, the Chinese foreign ministry said.

The ministry also said in a separate statement that Beijing valued Washington's use of the term "super intelligence" in place of "artificial intelligence". As AI technology continues to advance, the two sides should step up exchanges and work towards consensus in line with new developments, it said.

The two sides also agreed to support each other in hosting the Asia-Pacific Economic Cooperation leaders' meeting and the G20 summit, with both leaders planning to attend the gatherings hosted by the other.

On foreign policy, the leaders agreed that Iran should fulfil its commitment not to develop nuclear weapons, and that no country or entity should impose transit tolls on international waterways, the ministry said.

The US Embassy in Beijing did not immediately respond to a Reuters request for comment.