As multilateral trading system is facing serious challenges to deliver, it is now necessary to strengthen the trading system through reforms.

The reform could increase global economy by roughly 3 per cent or US$ 3 trillion by 2050 and also enhance global exports by around 20 per cent.

The World Trade Report 2026, just released by the World Trade Organization (WTO) in Geneva today (Tuesay) made these observations. The theme of the report is: ‘A critical juncture for the world trading system.’

wtr2World Trade Report 2026 at a display – WTO Photo

As per the report, for least-developed countries (LDCs), which currently account for less than one per cent of global trade, the gains could be particularly significant.

LDCs' GDP is projected to increase by 7.7 per cent due to benefits they would derive from tariff and other trade cost reductions, according to the report.

“High-income economies stand to gain substantially in absolute terms, with projected GDP gains of about US$ 1.7 trillion in 2023 dollars, reflecting in particular the benefits of lower trade costs in services,” the report continued.

The report is formally unveiled in Geneva on Tuesday at a session of the WTO Public Forum 2026. Earlier, a press conference also took place at the WTO secretariat to present the highlights of the report and reply questions of the media representatives.

WTO Chief Economist Robert Staiger along with report coordinators Roberta Piermartini and Kathryn Lundquist talked at the conference to explain the key features of the report. The press conference was conducted by Ismail Dieng, director of WTO’s information and external relations division.

World Trade Report 2026, however, cautioned that inaction to modernise the trading system could reduce global output by up to 10 per cent.

“The simulations by WTO economists showed that global GDP would fall by 5.1 per cent and global exports by 18.6 per cent in a geo-fragmented world scenario,” said Staiger. “The fragmented world means a world where the multilateral trading system splits into geopolitically aligned blocs.”

Again, in an ‘FTA world’ scenario, global GDP would fall by 6.9 per cent and global exports by 26.9 per cent, added the WTO chief economist.

The FTA world means replacement of the multilateral cooperation is replaced by a network of free trade agreements (FTAS) and absence of the WTO.

Now, if there is an enhanced cooperation in the world, where multilateral trade is reinforced, global GDP would increase by 2.9 per cent and global exports by 17.9 per cent, according to the report.

“The gap between strengthened multilateral cooperation and erosion of the WTO is equivalent to roughly 5 to 10 per cent of global real GDP,” added the report.

“If cooperation is replaced by an unstructured network of free trade agreements, LDCs could lose 16.5 per cent of GDP, more than three times the losses projected for high-income economies,” it further added.

The report mentioned that WTO's present challenges are, in many important respects, a consequence of the system's own achievements.

The multilateral organisation helped to create a more open, integrated and rules-based word economy, along with a situation where trade policy plays a more critical role, it added. As growing trade frictions become more complex, WTO membership also becomes diverse.

Despite various challenges, the WTO rules remain the essential legal foundation for international commerce. “Around 72 per cent of all global merchandise trade still takes place on the core most-favoured-nation (MEN) tariff terms negotiated and committed to by the WTO's 166 members,” the report said.

It also mentioned that though WTO members agree that the organisation WTO needs reform, they have struggled yet to reach agreement on how to update the rules on various issues.

The issues ranged from agriculture, services and development to concerns around transparency, subsidies and national security.

The report categorically said: “The future of the trading system will depend on members' ability to repair what is broken, update what is outdated, preserve what works, and adapt cooperation to new policy spillovers.”

“The world economy that the WTO helped to create does not weaken the case for rules-based cooperation; it makes renewal of that more urgent,” it added.

Robert Staiger, however, made it clear that the report does not prescribe a blueprint for WTO reform. “It highlights areas where adaptation of trade rules may be needed,” he added.

The report acknowledged that the multilateral trading system has delivered substantial gains, but not for all.

“Not all economies have shared equally in these gains,” it said. “Least-developed countries (LDCs) still account for less than I per cent of world trade, and some commodity-dependent economies and those with a low level of participation in global trade have experienced limited improvements or fallen further behind.”

This year’s trade report is the 24th edition of the WTO’s one of the key annual flagship publications. The World Trade Report was first published in 2003 focusing on development.

AI-linked stocks plunged worldwide on Monday after leaders of the biggest artificial intelligence companies warned of potentially existential risks from the technology, shaking confidence in the industry whose vast infrastructure spending has driven world stock markets to record highs.

The selloff rippled through the industry, where companies are increasingly relying on debt and circular financing to fund ambitious AI spending plans even as global borrowing costs, reflected in multi-year-high bond yields, continue to rise.

Anthropic CEO Dario Amodei, in a lengthy essay shared on X on Saturday, called on AI companies to slow the rate at which they advance model capabilities amid mounting fears AI could be misused.

Both Elon Musk, who runs xAI, and Sam Altman, CEO of OpenAI, said they agree with Amodei. Altman also said the company would not proceed with an IPO this year, citing safety concerns.

CHIP STOCKS LEAD GLOBAL SELLOFF

Wall Street’s major tech index, the Nasdaq 100, slid 1.2 percent to a six-week low in early trading as chip stocks, which have led the AI rally, fell the most, although it pared losses in early afternoon and was last down 0.4 percent.

“If this does lead to sort of a slowdown and a rethink of AI spending, that will have ramifications for the economy and some important sectors of the stock market, because essentially, we’ve been running hot based on AI spending,” said Steve Sosnick, chief market analyst at Interactive Brokers.

The Philadelphia chip index dropped 5.2 percent, with Nvidia down 3 percent, Advanced Micro Devices off 4.5 percent and Micron falling 5.4 percent. Semiconductor equipment makers Lam Research, Applied Materials and tech utility Bloom Energy lost more than 6 percent each.

Earlier in the day, Europe’s tech sector fell 2.2 percent, dragged by ASML’s 6 percent decline, alongside steep losses in Infineon and Siemens Energy, while in Asia, SoftBank plunged more than 10 percent and chipmakers TSMC and SK Hynix also retreated.

WARNINGS OF AI INTERNET TAKEOVER

Alarm about the potential harm from AI spiked earlier this month when Anthropic researcher Jacob Coxon resigned, stating that the AI giants are “gambling with our lives.”

A few days later, the San Francisco-based AI lab released a threat intelligence report detailing how its Claude AI models were used for activities ranging from weapons development and cyber operations to surveillance and fraud.

Over the weekend, Amodei wrote that in six to 12 months, AI agents “could be capable of taking over the entire internet potentially causing hundreds of billions of dollars in damage.”

Separately, OpenAI’s Altman warned in an interview that the risk of human extinction posed by AI was serious enough that AI companies and governments should act.

“The warnings should be taken seriously,” said Gillian Hadfield, Bloomberg Distinguished Professor of AI Alignment and Governance at Johns Hopkins University. “There are real risks of models doing things we don’t want them to do and which we don’t anticipate well.”

Several US lawmakers have raised concern about AI’s rapid progress and called for new rules.

US Senate negotiators are debating legislation that would require AI companies to demonstrate they are taking reasonable precautions, Reuters reported on Monday.

But US President Donald Trump on Monday appeared to dismiss the worries as a “sick conspiracy” against AI and data centers, which have become a flashpoint in the midterm elections.

AI-related trades have powered many of the gains in global equities since OpenAI released ChatGPT in 2022, but more recently cyberattacks by rogue AI agents and public discontent with data centre construction have raised opposition to the development of the industry.

The US and Chinese governments are expected to hold AI safety talks as part of bilateral discussions taking place this month, Reuters reported.

But China’s state-backed Global Times criticized the Anthropic essay in an editorial, calling it a “Cold War playbook” intended to curb the country’s technological development.

A growing concern for OpenAI and Anthropic is the rising competition from more affordable Chinese models such as Moonshot AI’s Kimi K3, Alibaba’s Qwen and DeepSeek’s offerings, which could pressure the pricing of larger, more costly models.

NOT ALL BELIEVE THE WARNINGS

Some investors dismissed the warnings from Anthropic and OpenAI.

Michael Burry, whose successful bets against the US housing market before the 2008 financial crisis were chronicled in the movie “The Big Short”, said in a message on X the warnings were “hype and puffery” and “cover for real uncontrollable slowing growth”.

Others have argued that record capital spending commitments suggest AI development is unlikely to slow.

Morgan Stanley forecast earlier this year that AI spending will surpass $1.3 trillion by 2027.

“The competitive race between companies and countries remains intense, and it’s difficult to imagine firms voluntarily stepping back while rivals continue to push ahead,” Deutsche Bank said in a note.

Meanwhile, Amodei’s Anthropic has pushed ahead with its public debut, expected next month as sources told Reuters that the company is in talks to bring in Nvidia as an anchor investor.

JPMorgan is set to launch a new index tracking government bonds from 26 frontier-market countries, including Bangladesh. The index will cover nearly $330 billion worth of local-currency government debt. What does that mean for Bangladesh and international investors?

What is a bond?

A bond is essentially a way for a government to borrow money. When the Bangladesh government needs to borrow, it can issue government bonds.

Investors buy those bonds and in return the government promises to pay interest and repay the principal when the bond matures. Bangladesh issues many of these bonds in taka. These are known as local-currency government bonds.

What is a bond index?

A bond index is a basket or list of bonds used as a benchmark to track the performance of a particular group of bonds or markets.

For example, an international investment fund looking to invest in frontier-market government bonds can use JPMorgan's index to see which countries and bonds are represented and how the market is performing.

JPMorgan is now creating a new benchmark specifically for local-currency government bonds from frontier markets.

What is a frontier market?

Financial markets are often broadly grouped into three categories: developed, emerging and frontier.

The US, UK and Japan, for example, have developed financial markets.

Countries such as India, Brazil and Indonesia are generally considered emerging markets.

Frontier markets are generally smaller and less-developed financial markets, with the potential for strong growth but also greater risks, less liquidity and less-developed financial infrastructure.

JPMorgan frontier bond index, covering $330b debt, to include Bangladesh
Bangladesh is classified as a frontier market in this context.

What exactly is JPMorgan doing?

JPMorgan is preparing to launch a new index called GBI-EM Edge by the end of September. It will track eligible local-currency government bonds from 26 frontier-market countries. The index will cover nearly $330 billion worth of debt.

This does not mean JPMorgan is investing $330 billion in these countries. Rather, the bonds represented by the index will have a combined value of nearly $330 billion.

Think of it as JPMorgan creating a global benchmark for a $330 billion pool of frontier-market government bonds.

Why is Bangladesh being included?

Bangladesh will be one of the 26 countries in the index. The countries expected to have the largest weightings include Bangladesh, Egypt, Vietnam, Morocco, Kazakhstan, Pakistan, Nigeria and Sri Lanka.

JPMorgan has capped the weighting of any individual country at 8%. Bangladesh is expected to receive the maximum 8% weighting. It means that, within this particular index, Bangladesh's eligible bonds can account for up to 8% of the index.

Why does this matter to Bangladesh?

The most important potential benefit is greater visibility among international investors. Large global investment funds often use major bond indexes as benchmarks for deciding where and how much to invest. Some funds also seek to replicate or track particular indexes.

Therefore, when Bangladeshi government bonds become part of a major international index, more global investors may start looking at Bangladesh's bond market. That could potentially lead to greater foreign participation in the domestic government-bond market.

But inclusion does not guarantee that foreign investors will pour money into Bangladesh. Investors will still consider Bangladesh's inflation, interest rates, exchange rate, economic outlook, market liquidity and policy risks before investing.

What does "local-currency debt" mean?

This is simply government debt issued in the country's own currency. For Bangladesh, a taka-denominated government bond is local-currency debt.

Suppose the government issues a bond for Tk10 billion. An investor buys it, the government pays interest and eventually returns the Tk10 billion when the bond matures. This is different from borrowing in US dollars or another foreign currency.

Why does borrowing in local currency matter?

Foreign-currency borrowing creates an additional risk for a government: exchange-rate movements.

Suppose Bangladesh borrows $1 billion when the exchange rate is Tk100 to the dollar. The debt was equivalent to Tk100 billion at that time. If the taka later weakens to Tk130 against the dollar, the same $1 billion debt would be equivalent to Tk130 billion.

So a weaker taka makes foreign-currency debt more expensive in local-currency terms. Local-currency borrowing avoids this particular exchange-rate risk for the government because it borrows and repays in taka.

The currency risk, however, does not disappear. It is largely shifted to the foreign investor, who is ultimately interested in the value of the investment in their own currency.

Why is JPMorgan launching the index?

There is growing interest among international investors in frontier markets because these markets can offer higher yields and potentially higher returns than more established markets.

According to Reuters, the new index has a nominal yield of almost 10.4%, around 440 basis points higher than JPMorgan's mainstream emerging-market local-currency bond index.

Higher yields can be attractive to investors. But they also reflect higher risks. Frontier markets can face greater currency volatility, lower liquidity and greater economic and policy uncertainty.

Which countries are in the index?

The 26 countries are: Albania, Angola, Bangladesh, Botswana, Côte d'Ivoire, Dominican Republic, Egypt, Georgia, Ghana, Jamaica, Jordan, Kazakhstan, Kenya, Morocco, Namibia, Niger, Nigeria, Pakistan, Paraguay, Senegal, Sri Lanka, Tunisia, Uganda, Uzbekistan, Vietnam and Zambia.

African countries will account for almost 45% of the index, while the Frontier Asia group -- mainly Vietnam, Kazakhstan, Pakistan and Bangladesh -- will account for nearly one-third.

What could it mean for Bangladeshi investors?

The index is primarily relevant to international investors and Bangladesh's government bond market, rather than being a new investment product for ordinary Bangladeshi savers. Greater international participation could potentially make Bangladesh's government-bond market deeper and more liquid. It could also encourage further development of the country's domestic capital market.

But it can work both ways. Once a country's bonds become part of a major global index, international investors also pay closer attention to its economic and financial conditions. A deterioration in confidence could therefore affect investment flows as well.

The bigger picture

The World Bank estimates that frontier-market economies are home to about one-fifth of the world's population, but account for only 3.1% of global capital flows and less than 5% of global GDP.

That gap is one reason international institutions have encouraged the development of deeper local-currency bond markets.

For Bangladesh, JPMorgan's move is therefore significant not because the bank is bringing $330 billion into the country, but because Bangladeshi government bonds are being placed on a major global investment benchmark alongside bonds from 25 other frontier economies.

The potential gain is greater access to international capital. The trade-off is greater exposure to global investors — and greater scrutiny of Bangladesh's economy, currency, policies and financial markets.

Importing food grains, fertiliser and other goods from the Middle East and Europe will become more expensive as war-risk insurance costs rise for vessels using the Red Sea amid escalating fighting along Yemen’s coast.

The higher insurance premiums and other additional costs will ultimately be passed on to consumers as shipowners and charterers adjust their expenses, said Md Mehrul Karim, chief executive officer of SR Shipping, a maritime concern of KSRM Group with 27 ocean-going vessels.

The US-Israel’s war on Iran, which began on February 28 this year, severely disrupted shipping through the Strait of Hormuz. The disruption has increased the importance of alternative routes, including the Red Sea, for some Middle Eastern oil and fertiliser shipments.

Oil tankers can sail from Saudi ports through the Bab el-Mandeb Strait, then into the Gulf of Aden and across the Arabian Sea to reach Asian markets.

But Houthi forces have recently seized strategic territory around the strait, including Perim Island, raising the risk to shipping through the route. The conflict has already disrupted maritime traffic, while recent Houthi attacks and advances along Yemen’s coast have increased the risk of further disruption to the passage.

Ship operators and owners say the situation is increasing the risk of renewed attacks and higher war-risk insurance premiums for vessels using the Red Sea corridor.

The charterer of one of the seven ships owned by state-owned ship operator Bangladesh Shipping Corporation (BSC) was planning to send the vessel to carry cargo to Yanbu, a major Saudi port on the Red Sea coast.

When BSC sought a quotation on Monday for war-risk insurance coverage from a foreign insurance company, it asked for a much higher premium.

BSC Managing Director (Insurance Cell) Md Ahasan Ul Karim said the company received a quotation seeking more than 1 percent of the value of a ship as a war-risk premium, while the rate earlier ranged between 0.125 percent and 0.75 percent.

War-risk premiums are calculated as a percentage of the total hull and machinery (H&M) value of the vessel for each transit.

Ahasan said a small rise in the premium means hundreds of thousands of dollars in extra costs for a seven-day voyage.

War-risk premiums are determined on a case-by-case basis and issued for a short period of one week or 10 days.

Satyajit Barman, head of business at TK Group, said the Red Sea has been widely used to import food grains, fertiliser and other goods from Europe and the Middle East.

“Amid war risk, the insurance premiums would surely rise, and it would add to the already soaring transport cost,” he said.

The alternative route to Bab Al-Mandeb is to sail around Africa’s Cape of Good Hope, a detour of approximately 7,500 kilometres that would take an additional 20 to 25 days and require higher bunker costs, Barman said.

He added that one of the group’s wheat shipments is expected to arrive from the Baltic region in the coming weeks.

China and India’s LNG imports are likely to rebound from multi-year lows once the Middle East supply crunch ends and prices ease, industry executives expect, reversing a pick-up in coal and oil use to generate power due to the US-Iran war.

The conflict has prevented Qatar and the United Arab Emirates from exporting most of their LNG via the Strait of Hormuz, where a fifth of global supplies used to pass, driving up prices and curbing demand in Asia.

Shell, the world’s biggest LNG trader, estimates the world has lost about 36 million tons of LNG from the Middle East so far this year, President for Integrated Gas Cederic Cremers said.

Asia’s spot prices have surged to nearly $30 per million British thermal units, from a pre-war range around $10 per MMBtu, as the region is competing with Europe for limited supplies ahead of winter.

“The prices have hit through the roof ... and that is definitely impacting the demand insofar as India is concerned because there are a lot of sectors which are price sensitive,” GAIL Chairman Deepak Gupta said at the Gastech conference in Bangkok.

“There are many industries which switch over to different fuels in case gas is not viable for them,” said Gupta, who heads India’s top natural gas distributor by market share.

Both GAIL and PetroChina, China’s top LNG importer, have deployed their trading teams to scour for alternative cargoes to replace Qatari and Emirati supplies since the war broke out.

Luo Yizhou, CEO of PetroChina International (PCI), the trading arm of the state energy major, said the company was working on the Sunday of February 28 in lieu of the Lunar New Year holiday when the US and Israel launched attacks on Iran.

“We had a meeting for something else, planning for this year, and then suddenly we saw the news, and then we switched the topic to how to secure supply,” Luo said.

“We were probably one day ahead of the market because most of the other companies start to work on Monday.”

GAIL’s Gupta said India had to limit gas consumption initially but resumed supplies to almost 90 percent to 95 percent as it ramped up its trading capability to buy LNG from elsewhere.

Exxon Mobil, GAIL and PCI executives expect the Middle East conflict to have a temporary impact on demand, with consumption to rebound once prices fall and global supply recovers.

“We are hoping that all this is very short term, and in the coming days, in mid-term and long-term, things will become normal,” Gupta said, adding that there may be about 150 million to 200 million tons of LNG coming online in the next four to five years which could cool prices.

“The sectors like the power sector in our country, like the various industries, they are going to go for more gas ... because it’s a cleaner fuel,” he said.

In China, PCI’s Luo expects demand from gas-fired power plants to rebound once LNG prices return to a “normal” range of $7 to $9 per MMBtu, citing strong growth in electricity consumption even as LNG imports have fallen.

“I think it is due to the temporary suppression of the demand faced by high price,” Luo said. “I don’t think it will kill the demand in China.”

Exxon expects substantial LNG demand growth in China over the long term, with extensive LNG import infrastructure built along the country’s east coast, the company’s vice president for global LNG marketing, Andrew Barry, told Reuters on the sidelines of the Gastech conference.

There is a lot of latent demand that is price sensitive, he said.

ExxonMobil remains confident in the diversification of its LNG portfolio, which includes assets and interests in the US, Mozambique, Qatar, Papua New Guinea and Australia. It continues to look at new opportunities with a focus on cost of supply.

“We still have an extremely bullish demand forecast out through to 2050,” Barry said.

Stocks on the Dhaka bourse staged a strong rebound today (15 September), snapping a five-session losing streak as bargain hunters returned to the market on assurances of an imminent resolution to industrial gas supply constraints and expectations of regulatory measures to arrest the prolonged downturn.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), jumped 93 points to close at 5,472, recovering a significant portion of the losses accumulated over the previous five sessions. The blue-chip DS30 index also gained 24 points to settle at 2,087.

The rebound was broad-based, with 336 issues advancing against just 21 declining and 37 remaining unchanged. Turnover, however, rose only 4% to Tk504 crore, suggesting that while buying interest returned, investors remained selective amid lingering uncertainty.

EBL Securities said the battered market finally found some relief as bargain hunting spread across the bourse. Investor confidence improved following the prime minister's assurance of an imminent resolution to industrial gas supply constraints, along with the regulator's engagement with leading brokerage firms over the market's prolonged weakness.

The market opened on a positive note and maintained its upward momentum throughout the session. The DSEX gained more than 100 points at one stage as investors moved to pick up shares that had suffered sharp corrections during the recent sell-off.

Sheltech Brokerage Limited attributed the strong performance to renewed buying interest following expectations surrounding the regulator's decision to convene an urgent meeting with leading brokerages. Reports of a significant improvement in gas supply after the outage of a floating LNG terminal caused by a fire on 21 July also supported investor sentiment.

The benchmark index climbed to an intraday high of 5,489 points, near which it settled, as buying strengthened from the middle of the session.

However, market participants cautioned that today's rally should not yet be interpreted as a decisive turnaround. Investors are likely to closely monitor whether the renewed buying momentum can be sustained and broaden across sectors in the coming sessions.

The proposed market-development initiatives by the Bangladesh Securities and Exchange Commission, developments in the Middle East conflict, the country's energy supply situation and upcoming earnings and dividend announcements by companies with June year-end remain key factors that could determine the market's direction in the near term, said Sheltech Brokerage.

Large-cap stocks played a significant role in the day's rebound. BAT Bangladesh, Beximco Pharmaceuticals, BRAC Bank, City Bank and United Commercial Bank were among the major contributors to the rise in the benchmark index.

Trading activity was led by textile stocks, which accounted for 21.9% of total turnover. General insurance followed with 19.4%, while banks accounted for 12.2%.

Most sectors posted positive returns. Services gained 4.1%, making it the best-performing sector, followed by general insurance with a 3.8% rise and paper with 3.7%.

IPDC Finance, Reliance Insurance, Eastern Bank, Sharp Industries and Envoy Textile were among the most-traded stocks.

Yeakin Polymer led the gainers, rising 10%, followed by Al-Haj Textile at 9.96% and Orion Infusion at 9.95%. Samorita Hospital and Samata Leather advanced 9.90% and 9.87%, respectively.

A few securities bucked the broader rally. PHP First Mutual Fund and Popular Life Insurance First Mutual Fund each declined 2.85%, while Zahin Textile, Shurwid Industries and Al-Arafah Islami Bank fell 2.56%, 1.69% and 1.27%, respectively.

The Chittagong Stock Exchange also ended higher. The CSCX rose 26 points to 8,935, while the CASPI advanced 44 points to close at 14,598.

Biman is preparing to sign deals for 21 more Boeing and Airbus aircraft within weeks, taking its unfulfilled orders to 35 aircraft.

The national flag carrier currently has 19 planes.

Sources familiar with the process told The Daily Star that an agreement on 11 Boeing aircraft is expected during the UN General Assembly, followed by a deal on 10 jets with Airbus next month.

Details of the Boeing aircraft, their variants, value, financing structure, and delivery schedule have yet to be publicly disclosed.

The proposed Airbus package comprises four A350-900s and six A321neos, sources said.

The purchases would come on top of a $3.7 billion agreement signed in April for 14 Boeing aircraft: eight 787-10s, two 787-9s and four 737 MAX-8s, with deliveries scheduled to run from November 2031 to October 2035.

State Minister for Foreign Affairs Humaiun Kobir said at a programme in Dhaka on September 12 that Bangladesh needed to expand its aircraft fleet to support new routes and networks.

Any decision to buy Boeing or Airbus aircraft, he said, was “all business of Bangladesh, nobody else’s”.

Against this backdrop, European Union Ambassador Michael Miller last week urged the government to ensure a level playing field in Biman’s procurement process, saying such decisions should be made “on the basis of commercial merit.”

The proposed Airbus purchase came up again yesterday when British High Commissioner Sarah Cooke met Civil Aviation and Tourism Minister M Rashiduzzaman Millat at his Secretariat office.

According to a ministry press release, Millat said Biman was facing an aircraft shortage and that steps were being taken to add aircraft urgently.

He said any procurement would be carried out transparently, based on recommendations from the High-Level Negotiation Committee.

Biman currently operates 19 aircraft, including five turboprops, four 777s, four 787-8s, two 787-9s, and four 737-800s. If the deals go through, it will be the largest fleet expansion in Biman’s history.

Biman has not released a consolidated business case explaining how a mixed fleet and new planes would be used and when the old ones would be retired.

AIRBUS DEAL

Biman had earlier signalled readiness to conclude the Airbus agreement by August 31, according to sources familiar with the process. After that deadline passed without a signing, officials said the deal is now likely in October.

Millat at a programme in Mymensingh on August 31 said that Bangladesh would buy aircraft from France, England, and Germany, where sections of Airbus aircraft are made.

A source familiar with the process said Bangladesh bought Boeings at list prices, while Airbus had offered discounts.

The source said Airbus would begin the delivery process soon after the agreement is signed, with 85 percent of the purchase cost covered through financing from the UK, Germany, and France.

Interest rates would be disclosed only after the agreement is signed, sources said.

Airbus has also proposed a package covering maintenance, repair and overhaul (MRO), as well as pilot and cabin crew training, fleet planning, and cabin design, another source said.

BOEING DEAL

The potential order of 11 Boeing planes came to the fore on August 30, when US Special Envoy for South and Central Asian Affairs and Ambassador to India Sergio Gor said on X that President Donald Trump and Prime Minister Tarique Rahman had made “another incredible deal”.

Trump later shared the announcement and wrote to Tarique, expressing appreciation for the “decision to purchase.”

On September 1, Humaiun Kobir said Bangladesh faced no pressure from the US to buy Boeing aircraft, adding that the fleet expansion was based on the needs of the aviation sector.

CARGO HANDLING

The Cooke-Millat meeting also covered aviation security and airport operations.

Millat sought steps towards withdrawing the European Union’s High Risk Cargo & Mail (HRCM) status, imposed on Bangladesh in 2017, saying it had increased the time and cost of shipping. He said the government had taken initiatives to have the status withdrawn and was moving to install Explosive Detection Systems (EDS) at airports. The minister said Hazrat Shahjalal International Airport and Sylhet Osmani International Airport had received satisfactory ratings in a recently completed audit and that the government now wants the EU to withdraw the HRCM status.

Cooke said the UK was ready to cooperate with Bangladesh in its efforts to establish an aviation hub.

The meeting also discussed Menzies Aviation’s interest in working with Biman on ground handling at the third terminal.

Sources familiar with the process said the UK-based company wants to handle cargo there and that the proposed operation could create around 1,000 jobs locally.

They said Menzies is seeking government approval.

The third terminal is set to be operated by a Japanese consortium led by Sumitomo Corporation, which the Civil Aviation Authority of Bangladesh said will have the prerogative to select a second ground-handling operator alongside Biman.

Sources said proposals from interested firms, including Menzies, would therefore be assessed through that selection process.

Salman F Rahman, former private industry and investment adviser to ousted prime minister Sheikh Hasina, has agreed to resign from the boards of Beximco Group companies, a move expected to break a nearly two-year regulatory and legal deadlock and clear the way for long-delayed board meetings and annual general meetings.

Salman, who has been in jail since August 2024 and is facing multiple criminal charges, agreed to step down following discussions with the government, according to sources familiar with the matter.

The group's three listed companies – Beximco Ltd, Beximco Pharmaceuticals PLC, and Shinepukur Ceramics PLC – have separately informed the Bangladesh Securities and Exchange Commission (BSEC) of Salman's intention to resign and sought regulatory approval to reconstitute their boards, according to letters obtained by The Business Standard.

According to BSEC sources, his resignation is expected to remove a major obstacle to the companies' board operations – allowing them to hold board meetings and AGMs.

The development has also eased uncertainty surrounding Beximco Group in the stock market. Shares of all three listed companies gained today (15 September) as the DSEX rose 93 points after falling for five consecutive trading sessions.

In its letter to the BSEC, Beximco Pharmaceuticals said Salman intends to resign from its board "in consideration that the businesses be allowed to operate without any hurdle and interference in the best interest of Beximco Pharmaceuticals, its shareholders and employees".

The company said its board would be reconstituted after completion of the required regulatory procedures.

Under the proposed structure, the Beximco Pharma board would comprise four directors nominated by foreign shareholders, one director from local financial institution IFIC Bank, three sponsor directors, two independent directors in line with the Corporate Governance Code and a newly appointed managing director.

However, the proposed restructuring faces a regulatory hurdle because Salman's exit would reduce the combined shareholding of the sponsor group below the required 30% threshold.

A person familiar with the matter said Beximco Group and related sponsor shareholders, including IFIC Bank, currently hold around 30% of Beximco Pharma, with Salman alone holding about 2%.

His departure would therefore reduce the sponsor group's combined holding to roughly 28%, below the regulatory requirement.

The BSEC has suggested bringing foreign shareholders onto the board or adding another shareholder to the sponsor group to address the shortfall, according to sources.

The company has already approached its foreign shareholders, but they have shown reluctance to join the board, a source said. Discussions are continuing to find a solution.

"The immediate challenge is to maintain the required sponsor holding if the existing foreign shareholders decline to join the board," the source said, adding that bringing another shareholder into the sponsor group could be one possible solution.

BSEC Chairman Masud Khan told The Business Standard that the commission would accept the board reconstruction proposals after the regulatory issue concerning the combined shareholding of Beximco Pharma's sponsors is resolved.

He also said it was clear that Salman F Rahman would no longer remain on the boards of Beximco Group companies.

For Beximco companies without foreign shareholders, the restructuring is expected to be relatively straightforward, with independent and other proposed directors to be appointed subject to regulatory approval, according to sources.

A source also said an understanding had been reached regarding the existing court proceedings, under which the relevant writ petition or stay order would be withdrawn, clearing the way for board restructuring.

The proposed Beximco Pharma board structure is expected to include three independent directors and three directors representing the sponsor side, the source said.

Beximco Pharmaceuticals, which is also listed on the Alternative Investment Market (AIM) of the London Stock Exchange, said the appointment of new directors would have to comply with applicable AIM rules.

According to the company's letter, proposed directors must undergo due diligence through the company's nominated adviser (NOMAD) before being appointed.

The standard due diligence process generally takes four to six weeks, and the company expects the full board reconstitution process to take around six to eight weeks.

Salman also intends to resign from the boards of Beximco Ltd, Shinepukur Ceramics and Beximco Securities for similar reasons, according to the letter.

Beximco's massive debt burden

The board restructuring comes as the conglomerate faces severe financial and operational difficulties.

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

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

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

Some funds were also allegedly channelled into capital-market share manipulation.

Following the fall of the Awami League government and Salman's arrest, Beximco's debt portfolio and assets came under scrutiny from the courts and Bangladesh Bank, with options including receivership and asset sales being considered to recover funds.

The group's financial distress has also disrupted operations.

Liquidity shortages, frozen operations and default classifications have made it difficult for some companies to import raw materials, while the government and state-owned entities have had to provide emergency support to clear workers' unpaid wages and other dues.

Nearly two years without normal board operations

The interim government appointed independent directors to Beximco for a three-year term after the conglomerate became embroiled in labour unrest, unpaid wages and salaries and mounting loan defaults.

The government also provided financial support to help clear workers' dues and tasked the independent directors with addressing the group's operational and governance problems.

Beximco subsequently filed a writ petition challenging the appointment of the independent directors. The resulting legal and regulatory uncertainty has effectively paralysed the companies' boards.

The boards have not held regular meetings to approve or discuss financial results, while the companies have also failed to disclose quarterly financial performance, annual reports and monthly shareholding statements.

The government is preparing amendments to the Insurance Act 2010 and drafting a crisis-resolution framework for the insurance sector as it moves to address widespread weaknesses in the industry.

Both measures are expected to be placed before Parliament in the coming days, Finance and Planning Minister Amir Khosru Mahmud Chowdhury told journalists yesterday after visiting the head office of the Insurance Development and Regulatory Authority (IDRA) in Motijheel, Dhaka.

The minister acknowledged that legal battles were delaying reforms, with entities “seeking undue advantage” frequently moving the courts, leaving several companies without regular managing directors.

He said amendments to the insurance law and management restructuring were under way to address the problem.

Asked whether mergers were being considered for the weakest firms, he declined to give a definitive answer.

“Until the resolution framework is finalised, it would be premature to comment,” he noted. “Whatever actions are required for insurance companies will be taken.”

WIDESPREAD IRREGULARITIES UNCOVERED

The insurance sector has fallen into the same mire of corruption, mismanagement and regulatory neglect that once crippled the banking industry, the minister said, noting that 57 percent of life insurance claims remain unpaid.

Khosru said the BNP-led government has uncovered widespread irregularities in the sector since taking charge.

He warned that companies that continue to withhold policyholders’ dues could be forced to liquidate assets to settle their obligations.

“Insurance plays a vital role in our economy, offering security for people’s lives, their homes, and their belongings,” he said. “But we have failed to elevate this sector to where it belongs, and today it offers little good news.”

Drawing a parallel with the country’s banking crisis, the minister said insurers had misappropriated policyholders’ funds through similar patterns of exploitation and unchecked corruption.

“Just as the banking sector was exploited through siphoning and corruption, we found the same mismanagement and lack of regulation when we took charge of the insurance sector,” he said.

Many firms had funnelled clients’ money into land, real estate and government securities instead of maintaining the liquidity needed to pay claims, the minister stated.

“Citizens invest a portion of their income in life insurance to protect themselves in hard times. Yet the majority of them have not received their legitimate payouts,” he said.

The minister also said IDRA had been empowered to take a firmer line, with every company that had failed to settle claims now given a strict deadline.

“Companies that fail to pay will face direct consequences,” he said. “If they face cash shortages, they will be forced to sell their properties and land assets to settle public claims.”

Investigations have also found several insurers operating two parallel record-keeping systems, one genuine and another concealed, which were used to process unauthorised transactions, he said.

“Maintaining dual servers is strictly banned. Following a grace period, inspections will begin, and strict legal action will be taken against violators,” he added.

Seven to eight insurance companies have persistently defied regulatory directives and now face serious scrutiny over their continued operation, the minister said, adding that they must resolve their outstanding issues shortly or face severe action.

He also flagged deep structural weaknesses within IDRA, saying the regulator lacked a permanent, specialised workforce and instead relied on commissioners and officers on temporary deputation who leave after their tenures end.

“Our three-to-five-year plan is to reduce dependence on externally deputed staff and build IDRA’s own trained, professional and permanent workforce, with a clear career path,” he said.

The sector, comprising 82 insurance companies, “many of which are weak”, remains a vital national issue that successive governments have failed to harness to its full economic potential, said Khosru.

“Company restructuring provisions will be embedded in the updated insurance laws. Once IDRA’s enforcement steps are implemented, a positive public image will naturally follow,” he added.

For Rasel Hossain, this year’s Aus harvest should have been a source of relief. Instead, the farmer from Uttargram village in Naogaon’s Mohadevpur upazila is counting his losses.

Rasel cultivated Aus on about 11 bighas of land this year, spending Tk 14,000 to Tk 15,000 per bigha. His yield ranged from 12 to 16 maunds per bigha (1 maund = 37.32 kg).

At the current average market price of Tk 725 per maund, his earnings would be around Tk 11,000 per bigha.

“At this rate, I am incurring a loss of Tk 4,000 to Tk 5,000 per bigha,” he said.

Like Rasel, Aus paddy farmers across Bangladesh are facing losses despite a good harvest, with prices falling by Tk 300 to Tk 400 per maund from a year ago while production costs remain high.

Farmers say the low prices are making it difficult to cover their costs, with some selling wet paddy at half price to repay loans taken for fertiliser, pesticides and irrigation.

Rice millers blame weak demand on large stocks built up following excess rice imports during the interim government’s tenure. Ministry of Food data show food grain stocks rose to 23.41 lakh tonnes on September 12, 2026, from 18.67 lakh tonnes a year earlier.

Meanwhile, Directorate General of Food data show that the country imported a total of 12.68 lakh tonnes of rice in fiscal year 2025-26.
Image
Aus paddy farmers across Bangladesh are facing losses despite a good harvest, with prices falling by Tk 300 to Tk 400 per maund from a year ago while production costs remain high. Photos: Mostafa Shabuj

A visit to local markets in Naogaon’s Mohadevpur upazila found Aus paddy selling for Tk 650 to Tk 750 per maund, compared with Tk 1,000 to Tk 1,200 during the same period last year.

Shamsur Rahman, a seasonal paddy trader in Mohadevpur, said, “Last year, Aus sales started at Tk 1,000 per maund and later climbed to Tk 1,200 to Tk 1,300. This year, I am buying it at only Tk 700 to Tk 750 per maund.”

Explaining the low prices, Shamsur added, “Major mill owners are not purchasing paddy right now, and the government stopped procurement in the last few months. That is driving prices down.”

Nurul Islam, a mill owner visiting Mohadevpur from Bogura’s Sherpur upazila, said a large stock remains unsold in his warehouse.

“Also, a lack of sunlight has made it difficult to dry paddy.”

Acknowledging the high costs and low market prices, Naogaon District Agricultural Marketing Officer Sohag Sarkar said production costs for Aus paddy reached Tk 26 to Tk 27 per kg this year, causing farmers to suffer losses at current selling prices.

“We report the production costs to the government and submit weekly market price updates. However, we cannot fix local prices independently without government intervention,” Sohag added.

Farmer Sukanta Paul of Boalmari upazila in Faridpur district said the production cost of Aus paddy was at least Tk 1,000 per maund, while he sold his paddy for Tk 950 to Tk 1,100 per maund.

He said high fertiliser costs, unreliable electricity and expensive irrigation are among the major challenges he faces as a farmer.

Sirajul Islam, additional director of the Department of Agricultural Extension’s Rangpur regional office, said farmers could not make much profit from Aus cultivation this year as production costs had increased.

Department of Agricultural Extension data show that nationwide Aus cultivation covered 11.59 lakh hectares in FY2021-22, yielding 45 lakh tonnes of paddy.

The area fell to 10.61 lakh hectares in FY2022-23, when production stood at 43.5 lakh tonnes. By FY2024-25, cultivation covered 959,000 hectares, producing 41.91 lakh tonnes.

For FY2025-26, acreage fell further, standing at 945,000 hectares, with a production target of approximately 40 lakh tonnes.

Over the last five years, Aus acreage has declined by 214,000 hectares, reducing production by 500,000 tonnes.

DAE officials said the main Aus varieties in Bangladesh are BRRI dhan-48, BRRI dhan-56, BRRI dhan-65 and BINA dhan-19, with an average yield of 3.15 tonnes per hectare.

Agricultural economist Jahangir Alam Khan suggested that the government’s grain imports should take domestic harvest cycles and market supply into account.

Economist Abdul Bayes, former vice-chancellor of Jahangirnagar University, said increasing Aus paddy production is difficult because of high production costs, limited market demand and low yields.

Bayes stressed that promoting Aus is important for maintaining ecological balance and reducing pressure on groundwater. Excessive Boro cultivation has contributed to groundwater depletion, he said, particularly in regions such as the Barind tract in Rajshahi.

He recommended that the government introduce a procurement price for Aus farmers while increasing investment in research and development.

[Our Rangpur correspondents S Dilip Roy and Jhenaidah correspondents Omar Ali Shohag contributed to this report]

Gas and electricity supplies to industrial units are expected to improve from tomorrow (15 September) evening, as the government says it has resolved the disruption caused by an accident at one of the country's two floating LNG terminals.

Prime Minister Tarique Rahman expressed the hope that gas supplies would return to their level before the recent crisis, while Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Administrator Md Fazlul Hoque said the prime minister had assured business leaders that the situation would improve from tomorrow evening.

"Hopefully, InshaAllah, from tomorrow evening, gas supply will return to the level as it was one-and-a-half months ago," Tarique said during an exchange of views with business leaders and media personalities at the Prime Minister's Office at the Bangladesh Secretariat today (14 September).

Speaking to reporters after the meeting, Fazlul Hoque said, "Prime Minister Tarique Rahman assured us that from tomorrow night, the situation regarding gas and electricity will return to where it was before the recent crisis emerged."

The three-hour meeting, attended by leaders of 21 business organisations and media representatives, focused on the current challenges and future plans for the country's power and energy sector.

Prime Minister's Deputy Press Secretary Hasan Shiplu said participants discussed electricity, gas, energy and mineral resources, with particular emphasis on industrialisation and employment.

Fazlul Hoque said the energy shortage had affected not only business and trade but also wider sections of society. He added that the government had committed to supporting the business community and industrial growth.

Govt working on third FSRU

Explaining the recent gas shortage, Tarique said the disruption followed an accident at one of the country's two floating LNG terminals, affecting industries and other sectors.

He said the government had already resolved the problem and was also working to expand LNG import capacity.

"To address the supply deficit, we have taken an initiative to set up a third floating LNG terminal. The preparations for setting up another terminal on a G2G basis have largely been completed over the past month. The work will begin soon," the prime minister said.

He expressed hope that the third FSRU could be connected to the national gas supply system by December 2027.

State Minister for Power, Energy and Mineral Resources Aninda Islam Amit presented a paper titled Challenges and Future Roadmap of Bangladesh's Power and Energy Sector at the meeting.

Long-term plans for energy sector

Prime Minister's Adviser and Prime Minister's Office spokesperson Mahdi Amin said the government was pursuing several long-term initiatives to address the power crisis, including plans to build five terminals.

He said an energy crisis accumulated over 16 years could not be resolved overnight.

Mahdi Amin outlined a production-oriented and integrated energy framework aimed at achieving greater self-sufficiency by diversifying energy sources.

"We want to diversify our power sector in the coming days so that we become self-sufficient in energy resources while giving the highest priority to solar energy," he said.

The government wants to develop a diversified power generation system based on solar energy alongside oil, gas and coal, he said.

'Inherited problems' need time to resolve

Tarique described the current problems in the power and energy sector as "inherited problems", saying they could not be completely resolved within six months or a year.

"But we have identified the problems, prepared plans and are now at the stage of implementing," he said.

He said the government was working within specific timelines to restore normalcy in power and energy supplies, adding that successful implementation would benefit not only businesses and trade but also the overall economy.

"After assuming office, the government reviewed the problems, held discussions with the relevant stakeholders and prepared plans to address them," the prime minister said.

"Anything needs time, from planning to implementation. The problems in the energy and power sector are inherited. It is not possible to solve them within six months or a year simply by wishing to do so," he added.

The government presented tentative timelines for various planned activities to business leaders. Tarique said there could be adjustments during implementation, but the government had specific plans and timeframes.

Business, media urged to cooperate

The prime minister sought cooperation from business leaders and media representatives in implementing the government's energy plans, warning that instability would ultimately hurt business, trade and the economy.

He said any setback in the business and industrial sectors would have wider economic consequences, making the resolution of the energy crisis a national economic priority rather than merely a business concern.

Uninterrupted and adequate energy and power supplies are essential to achieving the target of turning Bangladesh into a $1 trillion economy by 2034, Tarique said, adding that the government had prepared long-term plans with that objective in mind.

"There is no reason to be disappointed," he said, noting that the business community was already aware of the scale and complexity of the problems.

The government had chosen to present the problems openly rather than conceal them and had also explained its plans for addressing them, he said.

"We wanted to let you know that we are working on this. So, there is no reason to be disappointed," he said.

The prime minister urged the business community to support the government's plans if they considered them logical, saying successful implementation would benefit both businesses and the country as a whole.

Explaining the inclusion of media representatives in the meeting, Tarique said clear communication of government plans was necessary to prevent fragmented information from creating confusion.

He said a better understanding of the plans would enable the media to communicate them accurately to the public.

Tarique also stressed the importance of teamwork in implementing major national initiatives, saying relevant members of the government were working together to improve the lives of people across different sections of society.

The prime minister concluded by calling for cooperation from business leaders and media representatives.

"Please cooperate with us so that we can do something better for you," he said.

Commerce Minister Khandakar Abdul Muktadir, Prime Minister's Adviser on Finance and Planning Rashed Al Mahmud Titumir, Prime Minister's Adviser on Education, Expatriates' Welfare and Labour and Employment Mahdi Amin, Invest Bangladesh Authority Chairman Ashik Chowdhury, Principal Secretary to the Prime Minister ABM Abdus Sattar, Bangladesh Bank Governor Md Mostaqur Rahman, Power Secretary Mirana Mahrukh and Energy Secretary Md. Ziaul Huq were present at the meeting.

Among the business leaders were FBCCI Administrator Md Fazlul Hoque, BGMEA President Mahmud Hasan Khan, International Chamber of Commerce, Bangladesh President Mahbubur Rahman, BKMEA President Mohammad Hatem, Bangladesh Chamber of Industries President Anwar-ul Alam Chowdhury Parvez, Acting president of Bangladesh Jute Mills Association Abul Kamal, Chittagong Chamber of Commerce and Industry President Mohammed Amirul Haque, and Bangladesh Agro-Processors Association President Mahbub Anam, among others.

Editor of Daily Manabzamin Matiur Rahman Chowdhury, BNP Media Cell Moudud Hossain Alamgir Pavel, editor of Daily Wada Shafiqul Alam, journalists Ashraf Kaisar, Mustafa Firoz, Abdun Noor Tushar, Akbar Hossain, Shahed Alam, Rezaul Karim Rony, Azizur Rahman Ripon and Tarikul Islam Sourav, and Jahangirnagar University teacher Dr Nahreen Islam Khan were also present.

The Dhaka stock market extended its losing streak to five consecutive sessions today (14 September), with the benchmark index falling below the 5,400-point mark for the first time in three and a half months as persistent energy concerns and renewed geopolitical tensions in the Gulf drove investors into a defensive retreat.

The DSEX lost 39 points to close at 5,379, taking its cumulative decline over the five-day losing streak to 188 points. The index also hit a three-month low during the session. The market's total capitalisation declined by around Tk6,400 crore.

The blue-chip DS30 index fell nine points to 2,062, while trading activity weakened sharply. Turnover dropped 15% to Tk486 crore, reflecting investors' growing reluctance to take fresh positions amid heightened uncertainty.

EBL Securities said persistent concerns over the energy situation and renewed geopolitical tensions had kept investors on the sidelines. Although buyers and sellers were active during the early part of the session, an attempt at recovery quickly faded as selling pressure returned.

The benchmark index initially climbed to an intraday high of 5,454 points on bargain hunting, according to Sheltech Brokerage Limited. However, selling pressure intensified from the middle of the session as investors opted to reduce their exposure and wait for greater clarity on the market and economic outlook.

The DSEX eventually fell to an intraday low of 5,376 points, close to which it ended the session, highlighting the continuing erosion of investor confidence.

Market insiders said regulatory interventions surrounding unusual price movements in individual stocks were also contributing to investor inactivity. The regulator frequently launches investigations after sharp price rises in particular scrips, and such moves can disrupt normal trading dynamics and make investors more cautious, they said.

Influential investors, in particular, have been reluctant to take positions amid the uncertainty, further reducing buying support in the market, according to market participants.

The sell-off remained broad-based, although a few sectors managed marginal gains. Mutual funds recorded the steepest decline, falling 3.5%, followed by life insurance at 3.2% and miscellaneous stocks at 2.7%. Travel stocks gained 0.6%, while the banking sector edged up 0.2%.

Textile stocks dominated turnover, accounting for 25.4% of total trading, followed by general insurance at 15% and banks at 13.4%.

Renata, Southeast Bank, Beximco Pharmaceuticals, BSRM and Islami Bank were among the major stocks weighing on the DSEX.

Standard Insurance led the gainers, rising 6.79%, followed by Bangladesh National Insurance, which advanced 5.71%. Al-Arafah Islami Bank gained 5.36%, while Premier Leasing and First Finance rose 5.26% and 4.65%, respectively.

CAPM BDBL Mutual Fund suffered the biggest decline, falling 8.86%. Beximco dropped 8.01%, while Standard Ceramic, NCC Bank Mutual Fund 1 and Yeakin Polymer declined 7.24%, 7.14% and 7.10%, respectively.

The Chittagong Stock Exchange also suffered a sharp correction. The CSCX fell 84 points to close at 8,908, while the CASPI declined 161 points to 14,553. Turnover on the port-city bourse stood at Tk21.34 crore.

The Bangladesh Bank (BB) has introduced a commodity price risk hedging facility for importers, moving away from its previous requirement for firms to obtain clearance on a case-by-case basis.

A hedging facility allows businesses to lock in prices or use financial contracts to protect themselves against international market volatility, making future import costs predictable.

In a guideline issued yesterday, the BB said banks will be able to offer eligible importers a range of price risk management facilities without requiring case-by-case approval from the regulator.

The move comes at a time when global markets, especially those for energy commodities such as oil, face volatility amid heightened concerns over the spiralling war in the Middle East.

A hedging facility helps businesses lock in prices or use financial contracts to protect against market volatility and make future import costs more predictable

Iran has kept the Strait of Hormuz effectively shut, while the Houthis have taken control of the strategically significant Bab al-Mandeb Strait, a chokepoint for Red Sea maritime traffic.

Since the beginning of the US-Israel war on Iran on February 28 this year, energy prices have jumped.

Brent crude oil averaged $104.4 per barrel in the April-June quarter this year, up 30 percent from $80.5 in the previous quarter, according to World Bank commodity price data. The oil price was $67.8 a barrel in the April-June period of 2025.

Prices of liquefied natural gas and fertilisers, namely urea, triple superphosphate and diammonium phosphate (DAP), for which Bangladesh is highly dependent on imports, surged amid supply uncertainty caused by the war.

Under the new guideline, importers can use internationally recognised hedging instruments, including commodity futures, swaps, commodity index-based forward contracts and options, against actual import liabilities.

Importers of raw materials, intermediate goods, fuel, edible oil, metals, grains and fertiliser, among other essential commodities for domestic consumption, will fall under this facility, a senior official of the BB said on condition of anonymity.

Public sector entities engaged in strategic or large-scale import operations will also be able to take advantage of hedging.

In its directive, the central bank said businesses can hedge up to 100 percent of their actual underlying commodity exposure. Partial coverage and multiple hedge contracts are permitted, provided aggregate values do not exceed import liabilities.

“This will allow importers to protect themselves against abnormal price spikes in international markets and make cost planning easier for businesses,” said the BB official.

The regulator said hedging products must be used strictly for genuine exposures and not for speculative or leveraged trading. It is solely a mechanism to reduce price volatility risk in international markets.

Banks must ensure proper due diligence, record-keeping, risk disclosure and reporting to the BB.

The central bank official said the scope will help businesses, particularly importers, with cost forecasting and business planning. It will thereby improve their competitiveness amid global price volatility.

According to the BB, importers must operate under a board-approved risk management policy and submit written declarations confirming transactions are solely for risk mitigation.

They must also obtain annual certificates from statutory auditors confirming hedge alignment with exposures.

Hedging gains or losses must be accounted for in accordance with International Financial Reporting Standards (IFRS-9), which set out how companies should record and report gains or losses from financial contracts used to protect themselves against price changes, where applicable.

The BB said banks intending to offer these services must obtain its prior approval by submitting board-approved product specifications and standard operating procedures.

The widening of the Mideast conflict into Yemen and drone strikes on a critical Saudi oil pipeline highlight an uncomfortable reality: the Iran war is no longer a short-lived energy supply shock, but a prolonged, unpredictable test of global economic endurance.

With crude oil back above $100 a barrel, markets are adjusting to a new and more volatile phase of the conflict, one in which many of the safeguards that cushioned the initial blow nearly seven months ago have disappeared.

US President Donald Trump predicted last week that the conflict would end only after the US midterm elections on November 3.

This is a notable shift in tone from an administration that initially suggested the war would last weeks, not months.

Whether this new forecast proves correct is impossible to know, but recent developments at two of the world’s most important energy arteries suggest it may be very optimistic.

Yemen’s Iran-aligned Houthis have made rapid advances over the past week, tightening their grip on the Bab el-Mandeb Strait at the southern entrance to the Red Sea.

The group announced a naval blockade of the shipping route in July and has reiterated that transit remains safe for all vessels except those belonging to Saudi Arabia.

At the same time, Saudi Arabia’s vital East-West oil pipeline, the kingdom’s main alternative to the Strait of Hormuz, was temporarily shut after a series of drone attacks launched from Iraq, according to Saudi authorities.

The 1,200-kilometre (745-mile) pipeline has been critical for the kingdom since the Strait of Hormuz began to be disrupted following the outbreak of the war in February.

By more than doubling west coast exports via the pipeline during the first five months of the conflict to 4 million to 5 million barrels per day (bpd), equal to roughly 4 percent to 5 percent of global oil supply, Saudi Arabia was able to offset a significant portion of the losses through Hormuz.

Yet those shipments fell to just 2 million bpd in August, the lowest since January, largely because of the Houthi blockade, according to Kpler data.

In turn, output from what was once the world’s largest oil exporter fell to 6 million bpd in August, the lowest level in more than three decades, according to the International Energy Agency (IEA).

Satellite imagery suggests that at least one pumping station was struck, although the full extent of the damage and the timeline for repairs remain unclear.

Saudi Arabia will also likely be able to draw on stored crude to offset any interruption in pipeline flows for several days. But this escalation comes at a dangerous moment.

Disruption to Middle East oil exports, which accounted for around a fifth of global supplies before the war, has sharply eroded global stocks.

Inventories have fallen by 507 million barrels, or roughly 2.8 million bpd, since the conflict began, according to the IEA.

It’s true that more crude has been exiting Hormuz in recent months compared to the early months of the war, largely because more vessels have been using a route along Oman’s coast under US Navy supervision.

Around 5 million bpd of crude oil and refined products have been exported through the strait since June, around a quarter of pre-war levels, according to Kpler, though the real figure may be higher because many ships switch off their navigation systems during transit.

Iranian strikes on over a dozen tankers attempting to cross Hormuz or inside the Gulf last week were a reminder that transits remain risky.

Regardless, this status quo is unsustainable. The Middle East remains the most important energy-producing region in the world.

Halving crude exports from the Gulf may be manageable for a few months, but certainly not indefinitely.

Moreover, refined products like diesel, gasoline and jet fuel have fared considerably worse than crude, with exports from the region remaining nearly 60 percent below pre-war levels, according to IEA estimates.

This has led to acute fuel shortages, particularly of diesel, pushing prices to record levels.

Further disruption to Saudi Arabia’s Red Sea exports would put additional pressure on global inventories.

This latest flare-up could also cause ship traffic through Hormuz to shrink once again.

Tanker operators remain reluctant to enter conflict zones, freight and insurance costs have surged to all-time highs and naval escorts can only partially mitigate the risks of operating in a war zone.

The question now is just how long these market dynamics can hold.

Iran’s leadership views the conflict as existential and has every reason to maximise economic pressure on both the US and the wider global economy ahead of any eventual negotiations.

At the same time, Washington’s increasingly stringent blockade of Iranian oil exports is inflicting severe damage on the Islamic Republic’s economy, raising the costs of extending the confrontation indefinitely.

The Houthi advances and attacks on Saudi infrastructure may temporarily shift momentum back toward Tehran.

Those competing pressures could eventually bring both sides closer to the negotiating table.

Equally, they could encourage each camp to keep fighting in the hope that economic or military gains will strengthen its bargaining position.

For nearly seven months, markets assumed Trump would find an off-ramp once rising gasoline prices and political costs became too painful.

But that outcome depended on Tehran being willing to cooperate.

So far, it has shown little interest in doing so.

US policymakers and traders may have become accustomed to a conflict that appears manageable.

But if the war drags on for many more months, as Trump now suggests it might, the risk is that new disruption would find the market with far fewer shock absorbers.

Share markets slid in Asia on Monday, dragged down by AI stocks, while supply concerns in the West Asia caused oil prices to spike anew, and investors braced for likely interest rate hikes in both the United States and Japan this week.

AI-linked shares slumped after the leaders of OpenAI and Anthropic called for a slowdown in development to manage risks and protect humanity.

On the oil front, Brent climbed almost 3per cent as new strikes on Saudi Arabia and on ships in the Gulf strained nerves, after an attack on a Saudi oil pipeline and an advance by Yemen's Houthis threatened to worsen the wartime disruption to global energy supplies.

A meeting in Oman between Iran and Gulf Arab states, scheduled for Monday to discuss a deal on opening the Strait of Hormuz, was postponed.

With shipping through the strait and the Bab el-Mandeb under threat, analysts fear oil prices could stay elevated for a lengthy period, stoking inflation globally.

An uncomfortably hot US consumer price report on Friday led markets to price in an 86 per cent chance the Federal Reserve will lift rates by 25 basis points on Wednesday, and move again by December. It would be the first hike since mid-2023.

"We now expect the Fed to hike twice this year, in September and December," said Michael Feroli, chief US economist at JPMorgan. "At this stage, failing to back up words with action could put the credibility of the institution at risk."

"Whether these actions represent a limited recalibration or mark the start of a more sustained hiking cycle will depend on incoming data," he added. "We anticipate the former scenario but see risks for the latter."

Brent futures were last up 2.6 per cent at $107.36 a barrel, having gained almost 9 per cent last week, while US crude rose 2.4 per cent to $102.48 a barrel.

Japan's Nikkei fell 0.8 per cent, while South Korea dropped 2.1 per cent after the calls for a slowdown in AI development.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.8 per cent, while Chinese blue chips eased 0.4 per cent .

In Europe, EUROSTOXX 50 futures lost 0.2 per cent, while DAX futures fell 0.1 per cent and FTSE futures firmed 0.2 per cent. On Wall Street, S&P 500 futures lost 0.4 per cent, while Nasdaq futures fell 1.1 per cent.

High Yields Test Equity Valuations

Yields on 10-year Treasury notes were stuck at 4.974 per cent, having been sold heavily in recent weeks. Just last week alone, 2-year yields rose a steep 26 basis points, while 10-year yields added 19 basis points as the curve flattened.

Ben Snider, chief US equity strategist at Goldman Sachs, said strong corporate earnings should provide support for Wall Street if borrowing costs rise.

"Equities typically struggle when the Fed starts to hike rates, but we expect the bull market to continue," he added. "The S&P 500 has generated an average three-month return of -2per cent at the start of seven hiking cycles during the last few decades."

"Yet the S&P 500 has generated an average return of +9per cent during the 12 months following the first hike."

Markets also imply around a 76 per cent chance the Bank of Japan will lift its cash rate by a quarter point, to 1.25 per cent , when it meets on Friday. The BOJ is also expected to sound hawkish on further tightening as it struggles to prevent a relapse in the yen after market intervention helped to pull it from a 40-year low.

The dollar edged up to 153.98 yen, having fallen around 4 per cent over the last two weeks and away from a July peak of 163.99. The euro was a fraction lower at $1.1586, having found support at $1.1570 on Friday.

Sterling was flat at $1.3513 with the Bank of England expected to hold its rates at 3.75per cent on Thursday, though the decision could again be split.

In commodity markets, gold was flat at $4,347 an ounce, as higher bond yields diminished the lure of the non-interest-paying metal.

Industries struggling with gas shortages may get some relief from this evening as LNG supplies are expected to rise after a technical fault that disrupted ship-to-ship LNG transfer in July is finally fixed.

The development was revealed at a meeting between Prime Minister Tarique Rahman and business leaders at his Secretariat office yesterday (14 September), where energy supply emerged as one of the key concerns raised by the business community.

LNG supply stood at 764 million cubic feet per day (mmcfd) as of 4pm yesterday. Energy ministry officials said the supply could rise to 950-1,000mmcfd from today.

The meeting also brought another significant development for the country's gas sector.

Chevron has agreed to drill new wells in a joint venture with state-run Bapex, according to businesses who attended the meeting.

The agreement marks a shift from the US energy company's earlier position, when Chevron had denied that it would undertake such joint-venture drilling with Bapex.

Business leaders and government officials also discussed how Bangladesh could make better use of its coal-fired power plants and diversify its energy sources to reduce pressure on the country's increasingly import-dependent energy system.

The business community also raised concerns over the quality of services at Chattogram port. Government officials at the meeting, however, pointed out that the port operates round the clock and urged businesses to make greater use of its 24-hour operating capacity.

Bapex, Chevron joint exploration

Business leaders said the prime minister told them that the formal process for joint gas exploration by Bapex and Chevron would begin soon. Tarique also said the government would soon procure two drilling rigs for Bapex to extract natural gas.

On 13 September, a high-level Chevron delegation led by Javier La Rosa, president of Base Assets and Emerging Countries, met Tarique at the Prime Minister's Office at the Secretariat.

The meeting discussed Chevron's investment in Bangladesh's energy sector, particularly expanding investment in existing and mature gas fields and exploring new ones.

Gas supplies to improve today

The prime minister told business leaders that gas supplies to industries would return by today to their previous level, according to a statement from the prime minister's press wing.

On 21 July, the FSRU operated by Excelerate Energy in Maheshkhali was shut down after a fire damaged its boiler-related system during an LNG ship-to-ship transfer.

The terminal resumed partial operations about 25 days later but stopped supplying gas again on 19 August amid a shortage of LNG cargoes.

Following repairs, the FSRU is now back in operation and can supply up to 600mmcfd of gas. Actual supply, however, will depend on LNG cargo availability and operational conditions.

However, BGMEA President Mahmud Hasan Khan Babu told TBS that the country's two FSRUs would be able to operate at full regasification capacity by Wednesday evening.

It could take another three to four days for the increased supply to reach industries, he said.

Even when both FSRUs were operating at full capacity, industries faced a gas shortage, Babu said. Business leaders have therefore proposed increasing generation from oil-fired power plants and shutting some gas-fired plants to free up gas for industries.

Int'l tender soon for exploration in deep-sea blocks

Bangladesh Chamber of Industries (BCI) President Anwar-ul Alam Chowdhury Parvez said the government plans to invite an international tender soon for energy exploration in deep-sea blocks. It is also reviewing why companies that bought tender documents in the previous round did not participate, he said.

The government also plans to reassess capacity charges and introduce a "no electricity, no capacity charge" policy for power plants whose lease agreements have expired, Parvez said.

The government has decided in principle to extract coal from the Barapukuria mine, he said. Before extraction, authorities will consult residents who need to be relocated.

Another business leader said the government is prioritising foreign companies to operate and manage the country's ports, with Invest Bangladesh working on the initiative.

Tk6,000cr dues released for furnace plants

Business leaders said the government has released Tk6,000 crore of the Tk14,000 crore owed to furnace oil-based power plants. The plants are currently generating 3,000-3,500MW against a combined capacity of 5,637MW across 53 plants.

At the meeting, business leaders proposed running oil- and coal-fired plants while keeping gas-fired plants offline to free up more gas for industries. FBCCI administrator Fazlul said they recommended urgently ensuring full-capacity generation from these plants.

Bankers opposed financing closed factories from a Tk60,000 crore fund set up by Bangladesh Bank, while business leaders backed efforts to reopen viable factories, Fazlul said.

The governor said the fund would balance the interests of banks and businesses, with financing denied to factories if it could put funds at risk or had little prospect of revival.

3rd FSRU by Dec 2027

According to the press wing's statement, Tarique also announced plans to install a third FSRU. Preparations for the terminal have largely been completed, and work will begin soon. The government expects to connect the third terminal by December 2027, he added.

PM's Adviser Mahdi Amin said the government aims to have three FSRUs initially and five eventually, with efforts under way to add the third before 2028.

Businesses satisfied with govt plan

After the meeting, FBCCI administrator Fazlul Hoque said, "The biggest takeaway and relief from today's meeting is the prime minister's assurance that from tomorrow night, we will overcome the fresh gas and power crisis and return to the previous situation."

He said industrial expansion and new investment would create more demand for gas, which the government has a clear roadmap to meet. "Business leaders are satisfied with the plan."

"It was not a case of the government presenting its plans while we simply listened and left. The meeting was scheduled for two hours but ran for nearly three. Business leaders raised various concerns and suggestions, and we left satisfied with the responses," he added.

PM's Adviser Mahdi Amin said the work is under way to drill around 150 gas wells, followed by another 150, he said. Plans also include land-based LNG terminals and expansion of gas transmission and distribution networks.

The government plans to diversify generation through solar power, with greater emphasis on solar energy and domestic resources, Amin said. The goal is to build a diversified power and energy system that ensures uninterrupted supplies to industries, he said.

Bangladesh and Russia's state nuclear energy corporation Rosatom have agreed to accelerate work on the Rooppur Nuclear Power Plant so electricity can be generated and supplied to the national grid as soon as possible.

The agreement was reached at a bilateral meeting between Science and Technology Minister Faqir Mahbub Anam and Rosatom Director General Alexey Likhachev on the sidelines of the 70th General Conference of the International Atomic Energy Agency (IAEA) in Vienna, the Ministry of Science and Technology said in a press release today (14 September).

The two sides reviewed the latest progress of the Rooppur project and discussed steps to ensure electricity reaches the national grid at the earliest possible time, according to the ministry.

They agreed to speed up construction in line with the project's targets and move towards power generation as soon as possible, the press release said.

Anam stressed the need to complete the remaining work as quickly as possible while maintaining international nuclear safety standards and the highest level of safety.

Likhachev assured the minister that Rosatom would continue providing uninterrupted technical and strategic support for the project, according to the ministry.

Following the meeting, Anam and Likhachev exchanged commemorative gifts as a symbol of the friendly relations between Bangladesh and Russia.

Representatives from both countries attended the meeting, which the ministry described as having been held in a cordial atmosphere.

The government is importing liquefied natural gas (LNG) at nearly three times the price it paid before the Middle East conflict began, with one cargo approved at $29.795 per million British thermal units (MMBtu).

The Cabinet Committee on Government Purchase today (14 September) approved the proposal to import one LNG cargo from Singapore-based Vitol Asia Pte Ltd for delivery on 27-28 October.

The approval came at a meeting of the committee chaired by Finance Minister Amir Khosru Mahmud Chowdhury, according to the finance ministry's public relations department.

Before the US and Israeli attacks on Iran began, LNG was priced at around $10 per MMBtu.

The committee also approved the import of one LNG cargo from UK-based TotalEnergies Gas & Power Ltd for delivery on 9-10 October. The cargo will be procured through an international quotation process at $28.95 per MMBtu.

In addition, the committee approved the direct purchase of two LNG cargoes from US-based DARAB Inc at $17 per MMBtu and two cargoes from US-based Mind Mingle LLC at $19 per MMBtu.

Earlier, the government decided to import 18 LNG cargoes from France-based energy company TotalEnergies over nine months, with two cargoes scheduled each month from October this year to June next year.

The government may also purchase additional cargoes from TotalEnergies if required, subject to mutual agreement between the two sides.

The LNG will be procured through the direct purchase method for international procurement, with each cargo priced at the Japan Korea Marker (JKM) plus $0.06 per million British thermal units (MMBtu).

The rate is slightly lower than the price agreed with US-based Gunvor for 14 LNG cargoes to be imported between 2026 and 2028. Under that deal, the price was set at JKM plus $0.0875 per MMBtu.

Meanwhile, the government plans to add 1,600 million cubic feet per day (mmcfd) of LNG supply capacity by 2030 to meet rising gas demand, State Minister for Power, Energy and Mineral Resources Anindya Islam Amit said on 11 September.

Under the plan, a 600 mmcfd floating LNG terminal will be established in Maheshkhali by 2028, while a 1,000 mmcfd land-based terminal will be commissioned in Matarbari by 2030.

The state minister announced the plans at the 15th LNG Producer-Consumer Conference 2026 in Tokyo, Japan.

The government is also assessing the feasibility of urgently setting up another floating LNG terminal near Payra or Mongla ports, or at another suitable location along the southwestern coast, Prime Minister Tarique Rahman told parliament on 9 September.

The proposed terminal is part of a broader plan to expand LNG import capacity and increase domestic gas production to reduce the impact of sudden or temporary supply disruptions, particularly on industries.

The government is also progressing with plans for a floating LNG terminal at Kutubjom in Maheshkhali and a land-based terminal at Matarbari. The Kutubjom terminal is expected to start supplying regasified LNG in 2028, while the Matarbari terminal is expected to begin supplying gas by December 2030.

Saudi Arabia will run out of oil stocks for exports if it doesn’t restart its major pipeline to the Red Sea within days, leading to a loss of up to 4 percent of global supply, Saudi oil buyers and traders said.

A further decline in Saudi flows will worsen the global supply crunch, which has already pushed global fuel prices to record highs, spurred inflation around the world and sent US bond yields to the highest levels since the 2008 financial crisis.

Since drone attacks forced Saudi Arabia to shut its huge east-west oil pipeline on Friday, Riyadh has not given full details about the extent of the damage or how long the route will stay off-line.

Sources that spoke to Reuters gave varying estimates, with one saying the damage could take as long as five to six weeks to repair, while another said it could be fixed sooner and could resume pumping partially while repairs are ongoing.

Saudi Arabia’s government media office and energy ministry did not immediately respond to requests for comment.

For the past six months, the pipeline running through the desert across the Arabian Peninsula has spared Saudi Arabia from the brunt of the impact of the wartime shutdown of the Strait of Hormuz that has crippled exports from its neighbours.

The world’s biggest exporter has used the pipeline to reroute around 4 million barrels per day — around 4 percent of global supply — to the port of Yanbu on the Red Sea.

But with the pipeline out of service, Yanbu now has stocks to maintain exports for just five to seven days, according to three industry sources familiar with Saudi exports.

Saudi Arabia also has stocks to supply customers for several days from Egypt’s ports of Ain Sukhna on the Red Sea and Sidi Kerir on the Mediterranean, a fourth source said.

Yanbu storage capacity stands at around 35 million barrels, according to industry estimates, with Ain Sukhna and Sidi Kerir able to store 18 million and 20 million barrels respectively.

Stocks are not full and will ultimately run out without the east-west pipeline resuming operations, the four sources said.

Saudi oil supply has already fallen to a more than three-decade low in August on reduced flows via Hormuz and the Red Sea, the International Energy Agency said on Friday.

World oil supply will decline this year by 5.7 million bpd, or about 6 percent, the IEA, which coordinates Western energy policies, said.

In addition to the attack on the pipeline, Houthi fighters in Yemen who have threatened Saudi oil shipments seized an island on Friday in the mouth of the Red Sea.

The Middle East supplied around 22 million barrels per day of oil before the war. Flows through the Strait of Hormuz have slowed to just 6 million to 9 million bpd, industry sources say.

Saudi Arabia told OPEC last week that its oil production had dropped to just 6.2 million bpd in August from 10.9 million bpd in February before the start of the war.

The Dhaka Stock Exchange (DSE) has convened an urgent meeting with the country's top 30 brokerage firms amid a prolonged market downturn and growing investor concerns.

The meeting is scheduled for tomorrow (15 September) at the DSE office, with DSE Chairman Mominul Islam set to preside over the discussion.

The meeting will focus on identifying the key factors behind the ongoing market weakness and exploring measures to restore investor confidence and stabilise the market.

Representatives of the leading brokerage firms are expected to participate in the high-level meeting.

Confirming the development to The Business Standard, DSE Shareholder Director Minhaz Mannan Emon said the meeting aims to analyse the drivers behind the severe price corrections, devise actionable strategies to halt the slide, and explore immediate steps to rebuild investor trust.

The initiative comes against the backdrop of heightened volatility, aggressive selling pressure, dwindling retail participation, and stagnant trading turnover on the capital bourse. Repeated single-session drops have exacerbated panic across the floor. The DSEX index plummeted by 97 points today (14 September), following another steep 103 points drop on 7 September that dragged the benchmark down to 5,558 points while daily turnover shrank by 24% to Tk545 crore.

The sharp corrections in quick succession have triggered widespread risk aversion, forcing many retail investors to liquidate holdings to prevent further capital erosion.

DSE sources indicated that tomorrow's meeting will focus heavily on market liquidity, elevated sell orders, and systemic bottlenecks. Brokerage heads are expected to present their floor observations and outline collaborative measures needed from market operators and regulators to restore order.

The upcoming session follows preliminary discussions between the DSE management and members of the DSE Brokers Association of Bangladesh, where ensuring normal market operations and safeguarding general investor interest were highlighted as key priorities.