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.

National power supply is expected to remain tight after a technical fault forced a unit of the 1,320MW Rampal coal-fired power plant offline yesterday, offsetting generation gains made from the recovery of Adani Power's Godda plant.

The Rampal plant, which had been generating over 1,100MW, saw its output drop below 600MW following the shutdown of one of its units around 11:30am, according to sources at the Bangladesh Power Development Board and the Power Grid Company of Bangladesh.

Officials said efforts were underway to restore the affected unit at the Rampal facility, a joint venture between Bangladesh and India.

The plant had previously experienced production cuts due to coal shortages and transportation disruptions caused by storms, though generation had recovered recently following improvements in fuel supply.

The setback at Rampal occurred on the same day that Unit-2 of Adani Power Jharkhand's 1,600MW Godda Thermal Power Plant synchronised with Bangladesh's national grid at 12:04pm, three days after a technical issue in its feed unit forced it offline. The

BSS reports that the quantum was increased to 1,450MW at 6pm.

Adani's supply to Bangladesh rose from 758MW at 9am to 1,046MW by 2pm, with Unit-1 contributing 756.66MW and Unit-2 adding 290MW as ramp-up continued.

The Godda plant, which consists of two 800MW units with a combined actual capacity of around 1,496MW, had previously delivered output crossing 1,400MW prior to the shutdown of Unit-2.

A relentless wave of selling pressure swept through the stock market today (14 September), dragging down the market value of almost all listed mutual funds alongside broader equities.

According to Dhaka Stock Exchange (DSE) data, 33 out of 34 listed mutual funds saw price erosion amid heavy sell-offs, wiping out recent gains across the sector.

Mutual funds bore the brunt of the correction, losing an average of 3.5%, the steepest decline of any category traded on the DSE, according to data from EBL Securities.

Meanwhile, four mutual funds featured among the top ten losers, led by CAPM BDBL Mutual Fund, which saw the steepest decline of 8.76% to close at Tk7.20.

However, the capital bourse witnessed another session of overwhelming selling pressure, with the benchmark index slipping below the 5,400 mark after three and half-months.

DSEX, the broad index of the DSE, lost 39.6 points to settle at 5,379 points. The market extended its volatile trading pattern while buyers and sellers remained active on both sides of the trading spectrum in the early hours.

However, the fragile recovery attempt quickly faded as renewed selling pressure emerged amid prolonged investor anxiety, the market data showed.

Of the 398 total traded stocks, 78% saw price falls amid persistent sell-offs, while 14% surged and 8% remained unchanged.

Furthermore, 85% of A category stocks and 85% of junk stocks declined in price, DSE data showed.

The number of bank accounts holding more than Tk1 crore rose by 5,077 in the three months to June, while deposits in those accounts increased by nearly Tk16,000 crore, even as high inflation and prolonged weakness in the financial sector continue to weigh on the economy.

Bangladesh Bank data show that deposits in crore-plus accounts reached Tk8.75 lakh crore at the end of June, up from Tk8.59 lakh crore at the end of March.

Bankers estimate that individuals account for about 30% of these accounts, with institutions making up the larger share. They caution that the rise in crore-plus accounts should not be taken as a direct indication of an increase in the number of wealthy individuals, as institutional accounts dominate the category.

Bank deposits generally rise each year, although the pace varies, making an increase in the number of accounts holding more than Tk1 crore unsurprising, bankers said.

Deposits in these accounts, however, have been growing more slowly than overall bank deposits. Total deposits in the banking sector grew by nearly 11% year-on-year in June, compared with 8.29% growth in crore-plus accounts. The latter figure was 4.52% a year earlier.

The relatively small number of crore-plus accounts also does not appear to reflect the scale of wealth in Bangladesh, bankers said. Many wealthy people prefer to invest in land, houses and other assets rather than keep large sums in banks.

There are also allegations that some wealthy people are syphoning off their earnings abroad, where they may buy houses and cars or maintain lavish lifestyles.

Bankers believe concerns over VAT and taxes, as well as possible harassment, may also discourage wealthy people from keeping large amounts in banks. Some people who do keep substantial deposits divide their money among several accounts instead of maintaining a large balance in a single account.

Political uncertainty and the banking sector's ongoing crisis have also made some wealthy depositors reluctant to keep their money in banks, they said.

A senior official of Meghna Bank, speaking to TBS on condition of anonymity, said the amount held by ultra-rich people in bank accounts remained very small compared with the size of Bangladesh's economy.

Bangladesh's economy is now worth about $475 billion, while wealth inequality remains stark, he said. "But the bank account data do not reflect this inequality," he said.

He said it was difficult to reconcile the country's wealth distribution with the fact that only 120 individual bank accounts held deposits of more than Tk25 crore.

"This could mean that ultra-rich people are not keeping their money in banks, or that they do not feel comfortable keeping large amounts of money in a single bank account," he said.

Crore-plus deposits fluctuate

The number of bank accounts holding more than Tk1 crore stood at about 134,000 at the end of December last year, with total deposits of Tk8.34 lakh crore.

At the end of June 2025, there were about 127,000 such accounts, holding Tk8.8 lakh crore. The figures show that both the number of accounts and the deposits they contain can fluctuate significantly over time.

Bangladesh Bank spokesperson Arief Hossain Khan said the composition of crore-plus accounts was important when interpreting the data. "Therefore, there is no scope to directly equate the increase in the number of crore-plus accounts with an increase in the number of millionaires."

He further said there was no reason to view a rise in personal accounts holding more than Tk1 crore with suspicion if it was consistent with economic growth.

"At the same time, it is necessary to consider how long it is realistically possible for an individual to accumulate Tk1 crore based on their legitimate income, salary and allowances, business income and inflation," he said.

"If the increase in someone's bank balance is not consistent with their income and expenditure, a rapid rise in the amount of money in the account can be a cause for concern," he said.

Arief also said the growing number of crore-plus accounts could point to another economic concern: increasing inequality.

"A larger number of people becoming millionaires may also indicate greater inequality in the distribution of wealth," he said. "The concentration of excessive wealth in the hands of a small number of people is not positive for the economy of any country."

According to Fahmida Khatun, distinguished fellow at Centre for Policy Dialogue (CPD), tax and VAT issues discouraged many people from keeping money in banks.

Some people also try to stay outside the banking system to evade taxes, while others fear keeping even legitimate money in banks because they may face legal complications, the economist said.

To move the economy towards greater prosperity, the culture of fear and distrust surrounding the banking system must be removed, she said.

At the same time, it must be ensured that the misuse of laws does not become a source of harassment or danger for people, Fahmida added.

Insurance companies that fail to settle valid claims must sell their own assets, if necessary, to pay policyholders, Finance and Planning Minister Amir Khosru Mahmud Chowdhury has said.

Around 57% of claims in the insurance sector remain unsettled, he said, warning that insurers cannot retain assets or make new investments while failing to pay policyholders.

"Those who have cash problems will have to sell their property and pay the claims of the people," the minister said while briefing journalists after visiting the office of the Insurance Development and Regulatory Authority (IDRA) in Dhaka today (14 September).

Khosru said people buy insurance to protect their lives, assets and businesses, but failure to settle legitimate claims erodes public confidence in the sector.

"No company will be allowed to purchase land or other assets, invest in different sectors or keep money in government securities while failing to pay what it owes to policyholders," he said.

The minister said insurers must prioritise settling valid claims and ensure adequate financial capacity, good governance and accountability.

Claims must be settled within deadlines

The finance minister said insurers that have failed to settle claims have already been given specific deadlines.

If claims are not settled within the stipulated period, action will be taken against the concerned companies, he said.

"The main purpose of the insurance sector is to ensure people's financial security," he said, adding that clearing long-standing legitimate claims is essential to restoring policyholders' confidence.

During his visit to IDRA, the minister was briefed on the current condition of the insurance sector, ongoing reforms and plans. He praised the regulator's reform initiatives, saying IDRA has an important role in establishing good governance, transparency and accountability.

Insurance laws to be amended

The government will amend insurance laws and relevant regulations to address the sector's longstanding problems, the minister said.

"The current condition of the insurance sector requires us to change the insurance laws and regulations. We have to bring these changes, and we hope to implement them in the days ahead," he said.

Khosru also said changes would be made to the management of insurance companies and indicated that the sector may require restructuring, similar to the banking sector.

However, he said it would be premature to comment on possible mergers before the necessary regulations are prepared.

"It would not be right to say anything in advance until the regulations are ready," the minister said.

Once the necessary laws, regulations and regulatory framework are in place, the authorities will assess what measures are required for individual companies, he said.

"The problems in the insurance sector have gone very deep. Irregularities, disorder and corruption have persisted for a long time. So bringing changes here will not be easy. But we have to undertake this difficult task," Khosru said.

Risk-based supervision, automation

The government is taking steps to strengthen risk-based supervision of insurance companies, the minister said.

He attributed part of the sector's current problems to the lack of proper risk-based supervision over a long period.

Going forward, technology, automation and digital systems will be used to monitor insurers' financial strength, governance and risk management more closely.

The government also plans to bring all insurance companies under automation to reduce irregularities and corruption.

Every insurer must have an automated system and conduct transactions online, the minister said. An interconnected digital system will also be developed among relevant institutions, with Bangladesh Bank and the Bangladesh Securities and Exchange Commission expected to be linked to the system.

He said insurers have also been instructed to discontinue the practice of maintaining a "two-server" system. Action will be taken through inspections if any company continues the practice after the deadline.

IDRA capacity to be strengthened

The minister stressed the need to strengthen IDRA's manpower and institutional capacity.

He said the regulator lacks sufficient skilled professionals and that the government plans to reduce its reliance on officials appointed on deputation. Instead, it aims to develop IDRA's own skilled workforce over the next three to five years.

As insurance is a specialised sector, the regulator needs professionals with relevant academic backgrounds and practical experience, he said. Existing officials will also receive training to improve their expertise.

The minister said the government's goal is to make the insurance sector law-abiding, professional, transparent, technology-driven and customer-focused.

He also praised the ongoing reforms under IDRA Chairman Mir Nadia Nivin and expressed hope that the measures would strengthen transparency and public confidence in the sector while increasing its contribution to the national economy.

Bangladesh aims to add up to 4,000 MW of rooftop solar within one year. The newly announced incentive package, including a time bound Tk 10.50 per unit tariff for eligible surplus rooftop generation, together with the proposed OPEX model and battery storage framework, represents an important further step towards creating that market. The country has a large base of factories, textile and garment facilities, warehouses, commercial buildings, educational institutions, hospitals and public facilities with usable rooftop space. Achieving the target would require an estimated 24 million square meters of usable rooftop space nationwide. Daytime solar generation also aligns well with industrial and commercial electricity demand. Commercial and industrial (C&I) rooftop solar could therefore provide the fastest route towards realising the Government's ambition.

The challenge is converting these incentives and available rooftops into financed, connected and commissioned projects.

India added around 7,100 MW of rooftop solar in 2025 alone, taking cumulative capacity to approximately 23,500 MW by March 2026. Rapid large-scale deployment requires an integrated market architecture covering financing, contracts, utilities, grid connection, developers and execution.

The proposed shift towards third-party financed OPEX models, particularly Renewable Energy Service Company (RESCO) structures, is therefore important. Instead of investing their own capital, factory owners can contract a RESCO to design, finance, build, own and operate the solar plant, while purchasing electricity under a long-term agreement. But delivering 4,000 MW will require more than $2Bn dollars of capital and a much broader enabling framework. Five critical areas need to be addressed.

First, make projects financeable.

Mobilising capital at this scale will require a financing framework capable of attracting domestic and international financial institutions, development finance and foreign investment. Credit enhancement or partial-risk guarantees could help reduce financing costs and enable lenders to finance portfolios of rooftop projects.

The new tariff incentive can improve project economics, but it cannot substitute for access to long-term, competitively priced financing. For C&I projects in particular, the underlying economics will largely depend on electricity consumed directly by factories and businesses, with surplus exports providing an additional revenue stream.

Financing must also be supported by payment security and bankable contracts. If an investor installs a plant under a 15-year agreement, what happens if the factory closes, ownership changes or the electricity purchaser defaults? Standardised rooftop leases, RESCO power purchase agreements, termination provisions, lender step-in rights and payment-security arrangements are therefore essential.

Second, turn distribution utilities into facilitators.

Distribution utilities control critical elements of rooftop deployment, including technical approvals, connections, metering and electricity settlement. The new incentive package makes their role even more important as they will also administer the measurement and settlement of surplus electricity.

Each utility should receive annual and monthly MW targets, supported by measurable service standards for technical approvals, meter installation and commissioning.

Utility-Led Aggregation (ULA) should also be considered. Rather than waiting for customers to originate projects individually, utilities can identify and aggregate suitable rooftops and competitively procure RESCOs to finance and develop them as portfolios. A utility could, for example, aggregate 50–100 MW of commercial, residential or public-sector rooftops into a programme, reducing transaction costs and improving financing. ULA should complement and not replace privately originated RESCO projects.

This creates three parallel engines for deployment: private C&I/RESCO investment, utility-led aggregation and aggregated solarisation of Government buildings.

Third, enable scale and competition.

Local service capability is important, but strong geographic preferences risk fragmenting the market into district-level territories. Large-scale delivery will require experienced developers, strong EPC companies, portfolio financing and economies of scale. National accreditation combined with regional service requirements would be more effective.

Providers should also be classified by capability. The technical and financial requirements for installing a 5 kW household system cannot be the same as those for financing and operating a multi-megawatt industrial portfolio. Separate accreditation categories should therefore cover residential installers, commercial EPC contractors, industrial developers and large RESCO investors.

Fourth, make grid access predictable.

Net-metering and interconnection rules should increasingly be determined by technical grid capacity rather than historical electricity consumption. If a factory has sufficient rooftop space and the local network can safely accommodate the generation, there should be a pathway to install the economically optimal capacity.

The new Tk 10.50 grid-feed tariff should help accelerate deployment, particularly for projects commissioned within the incentive window. However, the February 2027 deadline may be too short to drive meaningful scale, given the time required for project development, financing, approvals, procurement and commissioning. A time-bound incentive should ultimately transition into a transparent long-term pricing methodology that provides investors with durable certainty. Bankability depends not simply on the attractiveness of today's tariff, but on confidence in the rules governing an asset over its operating life.

The inclusion of battery energy storage (BESS) is also welcome. As rooftop penetration increases, storage can play an increasingly important role in grid integration and maximising the value of distributed generation.

Fifth, create one national execution mechanism.

A National Rooftop Solar Mission, supported by a dedicated Programme Management Unit with clear authority and accountability, should coordinate distribution utilities, financial institutions, developers and relevant Government agencies. A single digital platform should cover registration, financing, vendor selection, technical approval, installation, metering, commissioning, settlement and performance monitoring.

The headline target must then be converted into an execution pipeline. Delivering the required commissioned capacity may require a 5,000–6,000 MW development pipeline to account for projects that are delayed, fail to reach financial close or ultimately do not proceed. Monthly milestones should track project identification, approvals, financing, construction and commissioning, with progress transparently reported.

Bangladesh has the rooftop potential and now has an important new incentive framework. But delivering at scale will require substantial private capital. Government's critical role is to establish a clear and predictable policy framework and a bankable investment environment capable of attracting domestic and international financial institutions and foreign investment. The priority now is ensuring that it translates into financed, connected and commissioned megawatts.

The author is a strategic consultant across technology, media and infrastructure industries.

A total of Tk 37.54 crore in insurance claims has been paid to 8,417 policyholders of seven troubled life insurers in two phases under an initiative of the Insurance Development and Regulatory Authority (IDRA).

The authority arranged funds from various sources, including the insurers’ assets and government securities, to settle long-pending claims.

In the first phase, Tk 14.51 crore was paid to 2,549 policyholders of BAIRA Life Insurance, Fareast Islami Life Insurance, Golden Life Insurance, Homeland Life Insurance, Padma Islami Life Insurance, Progressive Life Insurance and Sunflower Life Insurance.

In the second phase, Tk 23.03 crore was paid to 5,868 policyholders of Padma Islami Life Insurance, Homeland Life Insurance, Fareast Islami Life Insurance, Sunflower Life Insurance and Sunlife Insurance.

Noor Mohammed Bhuiyan, chief executive officer of BAIRA Life Insurance, said the company had not yet sold any of its assets, treasury bills or bonds, although the process of selling assets was underway.

The company was earning interest income, which was helping it arrange funds to pay insurance claims, he said.

Around Tk 100 crore in claims remained unpaid, affecting about 30,000 customers, Bhuiyan estimated.

He said it was difficult to predict whether it would take one month, one year or two years to settle all the outstanding claims. The company would continue paying policyholders as funds became available, he added.

He later clarified that the company’s assets and current holdings would be enough to cover about 80 percent of the outstanding claims.

A senior official of Padma Islami Life Insurance said the company was currently using interest income from its capital to pay staff salaries and meet other expenses.

The company owes around Tk 80 crore to policyholders and is working to settle the outstanding claims by recovering and selling its assets, the official said.

The Metro Rail project’s acquisition of 8.5 katha of the company’s land in Malibagh is expected to generate more than Tk 40 crore, he said. The company also owns 40 katha of land in Bashundhara.

The reporter also contacted Md Abdur Rahim Bhuiyan, chief executive officer of Fareast Islami Life Insurance, but he did not respond.

CLAIMS SETTLEMENT TO CONTINUE

Mir Nadia Nivin, chairman of IDRA, said ensuring the timely settlement of legitimate claims was one of the authority’s key priorities.

“Faster and more transparent claim settlements are essential to rebuilding public confidence in the insurance sector. IDRA will take all necessary measures to protect the interests of policyholders,” she said.

She said settling the claims would protect the financial rights of policyholders and help restore confidence in the insurance industry.

The initiative will continue beyond the first two phases, she added. The remaining valid and unpaid claims will be reviewed and verified, and payments will be made gradually after the necessary procedures are completed.

“The initiative will continue until the legitimate rights of policyholders are ensured,” the IDRA chairman said.

Barrister Khan Mohammad Shameem Aziz, an advocate of the Supreme Court, said any amount that can currently be returned to policyholders, even if small, should be considered a positive step.

He said efforts should be made to recover and distribute as much money as possible from the companies’ available assets.

Extraordinary legal measures should also be considered within the existing regulatory framework to protect policyholders who had deposited their money with the companies, he added.

Shameem urged IDRA to review the existing laws and introduce stricter enforcement measures to ensure that policyholders’ claims are paid.
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Bangladesh has issued its first dedicated Air Navigation Order (ANO) on aviation security as the country moves to strengthen its civil aviation rules ahead of an International Civil Aviation Organization (ICAO) audit next month.

The audit is scheduled to begin on October 26, and the dedicated aviation security ANO is one of the major issues auditors will examine, said Air Commodore Md Asif Iqbal, member (security) of the Civil Aviation Authority of Bangladesh (CAAB).

“If I cannot answer that question, I lose marks, and that affects the overall grading,” he told The Daily Star.

The ANO is a legal instrument issued by CAAB under the Civil Aviation Act, 2017, that sets out binding rules and procedures for a specific area of aviation operations. Violations of the order will be treated as offences punishable under the Act.

The security-specific ANO was gazetted on September 3 and came into force the same day. It sets out security responsibilities for airports, aircraft operators, passengers and other stakeholders and gives effect to standards and recommended practices.

The order does not, however, bring major changes to security measures already being followed.

Asif said the National Civil Aviation Security Programme (NCASP) contains detailed security requirements but cannot be made public because it includes sensitive information.

The ANO, he said, is essentially a generalised, publicly available version of the NCASP with classified information removed. “It’s not new.”

Group Captain SM Ragib Samad, executive director of Hazrat Shahjalal International Airport, also said no new passenger screening measures had been introduced following the issuance of the order.

“We are following the existing protocols,” he said.

Screening before entry into airside or security-restricted areas, for instance, was already in practice, he said, but had previously existed through other instructions rather than in the form of a navigation order. “This has basically given it a legal basis through the ANO.”

The order brings together a wide range of requirements concerning passengers, airport staff, baggage, aircraft and cargo.

It classifies disruptive passenger behaviour into four levels, ranging from suspicious or verbally threatening behaviour to an attempted or actual breach of the flight crew compartment.

Under the order, airlines may halt check-in or deny boarding over a passenger’s condition or behaviour. If boarding is denied at the gate, hold baggage should be offloaded, the passenger escorted to the landside area, and their name removed from the flight manifest.

Serious cases may be referred to law enforcement.

The ANO also says liquids, aerosols and gels must be carried in containers not exceeding 100ml each and placed in a transparent, resealable plastic bag with a maximum capacity of 1 litre. Containers larger than 100ml will not be accepted even if only partly filled.

Passengers who refuse security searches or do not allow their cabin and hold baggage to be screened or searched will not be allowed to board.

The order also requires background checks for people implementing security controls, those with unescorted access to security-restricted areas and those with access to sensitive aviation security information. The Special Branch of Bangladesh Police is responsible for conducting the checks.

Asif acknowledged that CAAB still faces shortages of manpower and some security equipment.

“We have some human-resource shortages. Our recruitment process is ongoing,” he said.

He said the Armed Police Battalion had been given responsibility for landside security while recruitment continued. Once CAAB reaches its full staffing strength, it plans to take over those responsibilities itself.

There are also equipment shortages, although procurement is under way, he said.

CAAB recently received 25 explosive trace detectors from China, while dual-view baggage screening machines have also been procured. The authority has recently added four body scanners, Asif said.

He described improvements in manpower, equipment, infrastructure and facilities as a continuous process.

“Even if you reach 100 percent today, tomorrow you may see a new requirement,” he said.

More sophisticated and modern equipment will be available once the third terminal becomes operational, he added.

The publication of the ANO comes as the government moves to replace the Civil Aviation Rules, 1984, which have remained in force for more than four decades.

The new rules are intended to bring the country’s civil aviation regulatory framework in line with international standards and address shortcomings identified in previous assessments.

The upcoming ICAO audit will assess Bangladesh’s compliance with international standards and recommended practices, with the findings affecting the country’s overall audit grading.

South Korea will support Bangladesh in developing a skilled workforce for the ship recycling, shipbuilding and ship maintenance sectors under a $15 million capacity-building and knowledge-sharing project, a senior official of the Korea International Cooperation Agency (Koica) said today (13 September).

The project, scheduled to run from 2027 to 2031, will focus on modern technology, advanced welding techniques, updated work practices and technical training to improve productivity and value addition in Bangladesh's ship recycling industry, said Hyunwoo Yang, deputy country director of Koica Bangladesh.

"South Korea is interested in supporting the development of modern technology and skills in Bangladesh's ship recycling sector," he said at a meeting with business and ship recycling industry leaders at the World Trade Centre in Chattogram.

Under the project, Koica will support infrastructure development, curriculum modernisation, teacher training and student training at the Bangladesh-Korea Technical Training Centre, according to the agency.

Yang said the Korean and Bangladeshi governments had agreed to work jointly on the initiative.

"Korean ship recycling companies want to recycle ships at yards in Bangladesh. That's why we conducted a study on Bangladesh's ship recycling sector," he said.

The study found a significant shortage of skilled workers in the industry, with only around 1–2% of the required workforce having the necessary skills, he said.

Koica plans to address the gap by expanding training opportunities across ship recycling, shipbuilding and ship maintenance.

The discussion was organised by the Chittagong Chamber of Commerce and Industry to assess the industry's demand for skilled workers and identify areas where Korean assistance could support the development of a smart and green ship recycling industry.

Chamber President Mohammad Amirul Haque said Chattogram was emerging as a major investment and logistics hub, while the government was planning to develop a green shipbuilding hub at Matarbari in Cox's Bazar.

"One of Asia's largest ship recycling industries is located along the coast of Sitakunda in Chattogram. So we welcome Korea's new initiative to build capacity and develop skilled human resources in this sector," he said.

Haque said South Korea had significant experience in technology and technical training, recalling its role in helping establish the foundations of Bangladesh's garment industry.

"We hope Koica's new initiative will help make the ship recycling sector more sustainable and develop a skilled workforce," he said.

He said shipyard owners were increasingly adopting modern technologies and converting their yards into green yards to make the industry more sustainable.

Industry leaders at the meeting said the training programme should not be limited to ship recycling workers. They called for skilled manpower development in shipbuilding and ship maintenance as well, saying these sectors could create wider employment opportunities and strengthen Bangladesh's maritime industrial base.

They also urged the authorities to develop internationally recognised skills so that trained workers could secure jobs in South Korea and other overseas markets.

A documentary on a feasibility study for skills development in Bangladesh's ship recycling industry was presented at the meeting by Koica expert Chung Yup Kim.

Bangladesh Ship Breakers and Recyclers Association President Mohammad Mohsin and adviser Zahirul Islam Rinku, Master Steel and Oxygen Ltd Chairman Master Abul Kashem, HR Ship Management CEO Mohammad Mahbubur Rahman, Bangladesh Technical Training Centre Principal Engineer Palash Kumar Barua, chamber directors and representatives of Koica and ship recycling companies attended the meeting.

The initiative comes as Bangladesh's ship recycling industry faces growing pressure to improve occupational safety, environmental management and compliance with international standards while preparing for greater competition in the global market.

In a major push to foster self-employment and drive grassroots economic growth, Bangladesh Bank today (13 September) issued a comprehensive guideline titled "Udyog: Upazila-Driven Youth Opportunity for Growth".

The program aims to hunt, identify, and finance prospective young entrepreneurs across all upazilas in Bangladesh.

Issued by the SME and Special Programmes Department, the circular directs Managing Directors and Chief Executive Officers of all scheduled banks to immediately implement the scheme.

The policy covers a wide array of legal ventures–including tech startups, agriculture, food processing, light engineering, renewable energy, and handicrafts–prioritising both new innovative ideas and existing business models.

To ensure funding reaches genuine and capable young creators, Bangladesh Bank established specific eligibility guidelines:

Age Limit: Applicants must be adult Bangladeshi citizens aged up to 28 years on the final date of application submission.

Local Residency: Candidates must be permanent residents of the respective upazila.

Clean Credit History: Applicants must not be loan defaulters. Any default status revealed during Credit Information Bureau (CIB) checks will result in immediate cancellation.

Furthermore, anyone who has previously taken a business loan from any bank or financial institution is ineligible.

Employment Status: Public, semi-government, and autonomous institution employees are excluded from applying.

No Collateral Required: To alleviate barriers for youth, loans under this program can be disbursed without collateral support.

The framework offers a maximum blended financing package of up to Tk20 lakh per selected entrepreneur, evaluated strictly against business requirements and proposed cost plans, according to the circular.

The funding is split equally: 50 percent bank loan (Up to Tk10 lakh) and 50 percent matching grant (Up to Tk10 lakh)

If a business needs Tk12 lakh, for example, the applicant receives Tk6 lakh as a bank loan and Tk6 lakh as a grant.

The grant and loan portions will be disbursed simultaneously into the recipient's bank account.

However, failure to repay the loan or misuse of funds will automatically convert the grant portion into an interest-free debt, recoverable under standard recovery laws.

Bangladesh Bank will nominate one Lead Bank for each upazila to execute and coordinate the program.

Any branch of scheduled banks will collect application forms. On the working day following the application deadline, branches will forward all applications to the respective Upazila Lead Bank, which will then channel them to the District Lead Bank and eventually to Bangladesh Bank's departmental offices.

A multi-stakeholder panel comprising central bank officials, scheduled bank representatives, successful entrepreneurs, industry leaders, and academics will evaluate business plans, market feasibility, and employment potential to make final selections.

Designated banks must sanction loans within 15 working days of final selection, adhering to their internal credit rules and central bank regulations.

All participating banks will also provide financial literacy training, mentoring, market linkage support, and assistance with business registrations to ensure long-term sustainability for the newly minted enterprises.

Prime Minister Tarique Rahman has urged the Ministry of Agriculture to reduce Bangladesh's dependence on imported agricultural and food products by increasing domestic production of items that can be produced locally.

He also called for measures to make agriculture more productive and profitable while ensuring food security.

The prime minister made the remarks during a meeting with officials of the Ministry of Agriculture at the ministry's conference room after visiting the ministry from his office at the Bangladesh Secretariat this afternoon (13 September).

The meeting reviewed the overall situation in the agriculture sector, ongoing activities of the ministry and its future plans, according to the prime minister's Press Wing.

"To achieve this, greater emphasis should be placed on increasing domestic production by quickly taking research, improved varieties, modern technology, irrigation and mechanisation facilities to farmers," Tarique said.

He instructed officials to focus not only on increasing agricultural productivity but also on reducing farmers' production costs and ensuring fair prices for their produce.

According to a presentation by the ministry, mustard production has increased as part of efforts to reduce dependence on edible oil imports.

Mustard production rose from 824,000 metric tonnes in fiscal 2021-22 to 1.534 million tonnes in FY2024-25 and 1.541 million tonnes in FY2025-26.

The ministry also outlined measures to increase onion production and storage capacity, including introducing airflow technology for on-farm onion storage and expanding summer onion varieties.

It is also working to expand climate-resilient crop varieties that can withstand salinity, drought and waterlogging, the meeting was told.

On agricultural research, the ministry said 1,090 crop varieties had been developed, including 155 rice varieties. More than 1,000 agricultural technologies have also been developed, according to the presentation.

The meeting placed emphasis on agricultural mechanisation to reduce labour and production costs while increasing productivity.

The government plans to increase the development and production of locally made agricultural machinery and make equipment such as combine harvesters, reapers and rice transplanters available to farmers at affordable prices.

The ministry also presented plans to expand the use of solar power in agriculture.

There are currently 2,617 solar irrigation systems in Bangladesh. Expanding renewable energy-based irrigation could reduce farmers' irrigation costs and dependence on conventional fuels, officials said.

The meeting also discussed the Farmer Card programme, which aims to deliver government support directly to farmers.

The agriculture ministry has set a target of bringing 4.3 million farmers under the programme in FY2026-27.

It is preparing to distribute cards to around 110,000 farmers in the first phase, according to the meeting.

Agricultural mechanisation, canal excavation, tree plantation, and the storage and marketing of agricultural products were also discussed.

Government's greater reliance on large taxpayers -- both individuals and corporates -- to achieve its higher revenue target in the current fiscal year is putting additional pressure on the existing taxpayer base.

The Large Taxpayers Unit (LTU) under the VAT wing of the National Revenue Board has been assigned a revenue target 60-percent higher than its collection last fiscal year. And the income-tax LTU's target is nearly 53-percent higher than its collection in FY26.

The government has set an overall revenue-collection target at Tk 6.04 trillion for FY27, which is 46-percent higher than the amount collected in the past fiscal year.

The targets of the income tax and VAT LTUs have increased more than 14fold over the past two decades. In FY08, the government had set revenue targets at Tk 38 billion for the income-tax LTU and Tk 101.44 billion for the VAT LTU. For FY27, the targets have been raised to Tk 550 billion and Tk 1.40 trillion respectively.

The VAT LTU collected Tk 875 billion last fiscal year against a target of Tk 1.08 trillion, while the income-tax LTU collected Tk 360 billion against a target of Tk 440 billion.

Economists and tax officials have aired concerns over the ambitious targets, citing Bangladesh's narrow tax base and sluggish business environment.Bangladesh Economic Report

The number of large taxpayers has not increased significantly in Bangladesh. Rather, several large companies, including multinationals, have exited the country over the past decade.

The number of VAT LTU taxpayers has fallen to 106 companies from 162 in 2005.

The income-tax LTU is also heavily dependent on corporate taxes paid by private commercial banks.

Tax officials say the banking sector is facing multiple challenges, including high non-performing loans, while troubled banks are struggling to repay depositors, leaving limited scope for tax officials to collect additional revenue from them.

Bangladesh Institute of Development Studies (BIDS) Director-General AK Enamul Haque says Bangladesh's low tax-to-GDP ratio is not acceptable given the size of its economy.

"Taxmen should work for expansion of the tax base rather than force existing taxpayers to pay higher taxes," he told The financial Express.

Business Initiative Leading Development (BUILD) Chairperson Abul Kasem has said taxpayers recognised as top taxpayers for paying high taxes and maintaining compliance should not face "arbitrary harassment".Business Consulting Services

Tax officials should categorise compliant taxpayers separately to protect them from unnecessary scrutiny while pursuing the revenue target, he added.

Apurba Kanti Das, former tax member at the National Board of Revenue (NBR), says revenue collection depends on an ecosystem linked to the broader economic conditions of a country.

"Banks are among the largest taxpayers, but many are now under immense financial pressure."

He has suggested accelerating automation in tax administration as he thinks a shift away from manual systems could help increase revenue collection significantly.

Meanwhile, major sources of VAT collection include tobacco, telecommunications, gas and power.

VAT officials have said achieving the "unprecedented" target, which requires a quantum jump in collection, would be nearly impossible.

Such targets demoralise officials and discourage them from intensifying efforts when they know they are unlikely to come close to meeting them, they said.

"It is really frustrating for the tax department that all other departments of the government point fingers at taxmen for failure in achieving the target," says a field-level VAT official.

The NBR alone cannot increase the tax-GDP ratio through reforms unless other government departments undertake complementary reforms, the official adds.Economic Analysis Platform

NBR officials also fear a decline in VAT collection as they will have limited scope to monitor and assess receivable taxes under a new budgetary provision allowing businesses to submit VAT returns quarterly instead of monthly. The provision was introduced to reduce compliance hassles for businesses.

VAT officials feel the new system could make it difficult to assess potential revenue losses caused by power and gas shortages and industrial closures.

They have also said the tax culture among businesses in Bangladesh remains weak, with many businesses reluctant to pay VAT and treating tax payment as a lower priority.

Officials estimate that the VAT wing will lose Tk 14.50 billion due to the exemption of excise duty on deposits of up to Tk 0.4 million. The exemption on SIM cards is expected to result in another Tk 12 billion in revenue loss.

The gas sector is expected to cause a Tk 66-billion shortfall in VAT collection due to declining gas production and lower industrial consumption.

The LTUs were established under the Reforms in Revenue Administration (RIRA) project, with the income-tax unit set up in 2002 and the VAT unit in 2005.Banking Sector Analysis

The LTUs were established following recommendations from the International Monetary Fund (IMF) to boost tax collection from large enterprises.

Bangladesh Bank has issued guidelines to authorised dealer (AD) banks for implementing the Import Policy Order 2026-2029, which allows permissible industrial and commercial goods to be imported without opening letters of credit (LCs), subject to existing foreign exchange regulations.

The Ministry of Commerce introduced the new Import Policy Order through SRO No. 308-Ain/2026 on 24 August 2026. It will remain effective until 31 December 2029 or until a new import policy order is issued, whichever comes first, Bangladesh Bank said in a circular today (13 September).

Under paragraph 6(3) of the order, all permissible goods for industrial and commercial purposes can be imported through purchase and sale contracts without opening LCs, regardless of the value of the imports.

However, authorised dealer banks must ensure that all such transactions comply with applicable foreign exchange regulations, the central bank said.

The circular also outlined provisions under paragraph 25 of the new order concerning the import and procurement of production inputs by export-oriented industrial enterprises.

Such enterprises may procure production inputs from local sources in local currency through back-to-back LC arrangements and on a free-of-cost (FOC) basis, according to the guidelines.

The circular also provided guidance on the applicability of the bonded warehouse system for importing and procuring production inputs.

Bangladesh Bank instructed AD banks to ensure compliance with the Import Policy Order 2026-2029 and relevant foreign exchange regulations when settling import transactions and payments related to locally sourced production inputs.

The central bank said the guidelines are intended to align foreign exchange procedures with the new import policy framework and provide greater flexibility in trade transactions, particularly for export-oriented industries.

Stocks on the Dhaka bourse plunged in the opening week of trading as concerns over the nationwide electricity and gas crisis, coupled with escalating tensions in the Middle East, triggered widespread selling and pushed the benchmark index to a three-month low.

The DSEX fell 96 points, or around 1.7%, over the week to close at 5,418, extending its losing streak to four consecutive sessions. The blue-chip DS30 index also declined 23 points to settle at 2,072.

Market breadth reflected the depth of the sell-off, with 336 issues losing value against only 27 gaining, while 21 remained unchanged. Despite the sharp fall in share prices, average daily turnover rose 5% to Tk571 crore, suggesting investors were actively offloading holdings amid mounting fears of further losses.

The market's total capitalisation fell by around Tk6,700crore during the week.

EBL Securities, in its daily market review, said the capital market showed no sign of reversing its bearish momentum as investors remained deeply concerned about the near-term economic outlook.

Persistent gas and power shortages have raised concerns over industrial production and corporate profitability. The escalating conflict in the Middle East has added another layer of uncertainty, prompting investors to adopt a defensive stance and sell shares to limit portfolio losses, EBL Securities noted.

Market insiders said Bangladesh could face additional pressure on its import-export trade and fuel supply if disruptions in the Red Sea worsen. Growing Houthi control over parts of Yemen's Red Sea coast could threaten shipping through the Bab el-Mandeb Strait, an increasingly important alternative route amid disruptions around the Strait of Hormuz.

Any prolonged disruption to shipping routes could raise transportation and fuel costs, put further pressure on gas and energy supplies, and disrupt exports to major markets in Europe and North America, they said.

Such risks could further squeeze corporate profitability and place additional pressure on the broader economy, fuelling panic among already cautious investors, they added.

The sell-off was broad-based, with all sectors posting negative returns. Travel stocks suffered the steepest correction, falling 5.4%, followed by ceramics at 4.1% and jute at 3.7%.

Textile stocks dominated trading, accounting for 25.9% of total turnover. General insurance followed with 15%, while banks accounted for 11.5%.

United Commercial Bank, Eastern Bank, Islami Bank, BRAC Bank and Beximco Pharmaceuticals were among the major stocks weighing on the benchmark index.

A handful of mutual funds and insurers bucked the broader decline. First Prime Finance Mutual Fund gained 9.95%, followed by EBL First Mutual Fund, which rose 9.30%, while Reliance Insurance advanced 6.99%.

On the other hand, Orion Infusion suffered the biggest decline, falling 9.91%. Lub-rref (Bangladesh) dropped 8.82%, while Sharp Industries lost 8.42%.

The bearish trend was also reflected on the Chittagong Stock Exchange. The CSCX index fell 79 points to 8,993, while the CASPI declined 150 points to settle at 14,715.

The Ministry of Commerce has suspended its decision to withdraw the bond facility for imports of 10-30 count cotton yarn and require importers to submit bank guarantees, pending further review.

In a letter to the National Board of Revenue (NBR) chairman today (13 September), the ministry said it had suspended the decision for further consideration.

The ministry had asked the NBR on 7 September to withdraw the bond facility for imports of 10-30 count cotton yarn in a move aimed at protecting local industries and facilitating access to raw materials for genuine exporters.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan Babu welcomed the latest decision, saying the BGMEA, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and the Bangladesh Textile Mills Association (BTMA) would meet shortly to discuss the issue and work towards a solution.

"I hope we will reach a consensus and make a decision under the leadership of the commerce ministry, in the interest of the country", he added.

The suspension comes amid a broader dispute between textile millers and apparel exporters over restrictions on imported raw materials.

The government previously halted the import of knit fabrics used by knitwear exporters under the new Import Policy Order, prompting concerns in the apparel sector that the restriction could hurt exports.

The BGMEA and the BKMEA had sought withdrawal of the provision in a letter to the commerce minister on 1 September. The Commerce Ministry subsequently held discussions on the issue.

The ministry had said local industries had developed the capacity to meet most of the knitwear sector's demand for raw materials, although some specialised imports were still necessary.

Exporters, however, argue that Bangladesh does not produce every type of knit fabric and that some high-value-added fabrics, buyer-specified materials and cheaper imported inputs need to be sourced from abroad to remain competitive.

Textile millers, on the other hand, maintain that local mills have sufficient capacity to meet the knitwear sector's demand and that restrictions on imports would reduce buyers' ability to dictate where raw materials are sourced.

Bangladesh exports around $39 billion worth of apparel products annually, with more than half coming from knitwear.

The premier bourse has moved to expand its stake in the proposed clearing company and ensure dominance on its board before the company is registered with the securities regulator and comes into operation.

To this effect, a proposal to amend the articles of association of Central Counterparty Bangladesh Ltd. (CCBL) will be placed at the EGM (extraordinary general meeting) to be held on Monday.

Shareholders of the Dhaka Stock Exchange (DSE) said they want a higher stake - currently 45 per cent under the existing rules - in the clearing company, as the CCBL's revenue would mostly come from daily transactions on the premier bourse.

The resolution to be placed at the meeting will also propose changing the board structure of the CCBL and removing other provisions that bar the DSE's dominance in the clearing company.

Under the existing rules, the CCBL's board has 14 members, including its chairman, seven of whom are independent directors. The DSE's proposal seeks a seven-member board, including two independent directors.

Presently, the exchange's shareholder directors are not allowed on the board of the clearing company - a restriction that will change if the DSE's proposal is approved and executed.

Insiders said the DSE's shareholder directors have been opposing the provision excluding them from the CCBL's board, which they say is why the company has not become operational even six years after its formation.

The CCBL would provide clearing and settlement services for Bangladesh's capital market. In the absence of any clearing company, the exchanges currently provide these services themselves.

Some other proposed changes to the articles of association indicate that the DSE wants full control over the clearing company. Speaking to the FE, some shareholders of the prime bourse acknowledged as much.

Minhaz Mannan Emon, a DSE shareholder director, said the CCBL's board has remained non-functional because of too many independent directors.

Under the existing board structure, 12 commercial banks hold a 15 per cent stake in the CCBL, while the Chittagong Stock Exchange holds 20 per cent and the depository authority holds the remaining 20 per cent.

The resolution to be placed at Monday's meeting proposes excluding the banks' representative from the CCBL's board.

The current provision requires approval from the Bangladesh Securities and Exchange Commission (BSEC) for the appointment of independent directors to the CCBL, and stipulates that the chairman be selected from among the independent directors.

But the resolution proposes selecting the chairman from among the DSE's shareholder directors, without BSEC's permission.

As per the existing articles of association, the appointment of the CCBL's managing director and any extension of their tenure should be carried out in line with regulatory approval. The new proposal instead suggests that the managing director's appointment and tenure extension be governed by the appointment contract.

The resolution also seeks the removal of other provisions, such as the requirement for the managing director to serve as member secretary of all board committees except the risk management committee.

Presently, the CCBL's managing director is also required to submit a report to the BSEC and the CCBL's board on the company's administrative activities and functions, and on the implementation status of relevant laws, rules, regulations, bye-laws, directives, or orders. But the DSE's proposal seeks to eliminate the managing director's obligation to submit reports to the commission.

Asked whether the changes to the CCBL's articles of association would be accepted by the securities regulator, DBA President Saiful Islam said the regulator would need to amend the securities rules tied to the clearing company.

The rules for the CCBL were framed and approved after the demutualisation of the stock exchanges. The company's board structure was designed with the ultimate goal of securing institutional independence. Hence, both stock exchanges were restricted from together exceeding a 65 per cent stake in the CCBL, with a single exchange limited to a 49 per cent holding.

Since the CCBL's functions are directly linked to bank transactions, bank representatives were envisioned on the CCBL board to facilitate the clearing and settlement function.

Meanwhile, Mr Saiful Islam said, "The DSE expects that the regulator will accept the [proposed] changes to the articles of association."

The DSE has not yet sought registration of the CCBL with the securities regulator.

Insiders, however, said the CCBL's coming into operation would face more challenges if the BSEC does not approve the changes after they are incorporated into the CCBL's articles of association.

American Chamber of Commerce in Bangladesh (AmCham) and the government have agreed to work jointly to facilitate an additional $5 billion in American direct investment into Bangladesh over the next five years.
The target was highlighted during AmCham's 30th Anniversary gala evening held at a hotel in the capital on Saturday, reports UNB, citing a press release.

Speaking at the event as chief guest, Commerce, Industries, and Textiles & Jute Minister Khandakar Abdul Muktadir reiterated the government’s full support for AmCham’s initiative to attract $5 billion in fresh US investment.

He emphasised that incoming investments should translate directly into employment generation, technology transfer, and expanded economic opportunities for Bangladesh.

Highlighting the need for an investor-friendly environment, the Minister stressed the importance of policy predictability, consistency, ease of doing business, and efficient trade facilitation.

He acknowledged that AmCham’s increasingly vital role in policy advocacy and as a bridge between the government and the private sector.

Speaking as a Special Guest, US Ambassador to Bangladesh Brent T. Christensen praised AmCham's 30-year legacy of advancing bilateral commercial ties.

“I am confident that as Bangladesh delivers on its commitments in the Agreement on Reciprocal Trade, we will see even more positive outcomes in the next 30 years and beyond,” he said.

Earlier in his opening remarks, AmCham President Syed Mohammad Kamal highlighted the Chamber's evolution into a robust platform for business and bilateral economic partnership.

Outlining future priorities, Kamal stressed the need for a clear 2-year energy roadmap with six-month milestones, an enabling investment climate, stronger intellectual property rights, cybersecurity measures, and the tangible implementation of regulatory reforms.

The milestone event also marked the launch of the "AmCham Excellence Award," announced by AmCham Vice President and MetLife Bangladesh CEO Ala Uddin Ahmad, to honor outstanding contributions across sectors.

AmCham Executive Committee Member Habib Bhuiyan delivered the closing remarks, expressing gratitude to participating dignitaries, member companies, and partner institutions for their three-decade-long support.

Bangladesh Bank yesterday instructed banks to follow new rules allowing businesses to import goods through open-account arrangements, giving importers greater flexibility to pay for shipments without opening letters of credit (LCs).

Under an open-account arrangement, sellers ship goods with the understanding that payment will be made at a later date.

The BB issued the clarification two weeks after the commerce ministry issued the Import Policy Order (IPO) 2026-2029, which allows buyers and sellers to enter into direct purchase and sale contracts without opening LCs, irrespective of the value of the transactions.

The order will remain in force until December 31, 2029.

For export-oriented industries, the BB said the import policy order contains specific provisions governing the import and procurement of production inputs.

Under the provisions, such enterprises may procure inputs from local sources in local currency through back-to-back LC arrangements and on a free-of-cost (FOC) basis.

The BB said the new order also provides guidance on the applicability of the bonded warehouse system for the import and procurement of production inputs.

The central bank advised authorised dealer banks -- lenders permitted to buy, sell and manage foreign currencies -- to comply with the provisions of the new order and relevant foreign exchange regulations when settling import transactions and payments for locally sourced inputs.

“The latest guidance is expected to further harmonise foreign exchange procedures with the new import policy framework, enhance flexibility in trade transactions, and facilitate export-oriented industries through simplified sourcing and payment arrangements,” said a senior BB official.

Maritime trackers received new reports of an attack on a ship in the Strait of Hormuz on Sunday, adding to concerns about Iran-related threats to energy supplies after Saudi Arabia shut down a vital oil pipeline.

The British navy-affiliated agency ‌UKMTO said it had a report of a projectile hitting a vessel as it moved through the Strait of Hormuz. The amount of damage and the status of the crew were unknown as of early Sunday, the agency said.

UKMTO's report came the day after Saudi Arabia said it had temporarily closed its East-West pipeline as a precaution after a drone attack that both Baghdad and Riyadh said had originated in Iraq, where Iranian-backed militias operate.

Ongoing attacks in the widening Middle East war could send energy prices even higher after a week that saw the cost of Brent crude surge back above $100 a barrel.

The 1,200-km (745-mile) East-West pipeline running across the Arabian Peninsula has served as the main route out for global supplies of Middle East oil for the past six months while the Strait of Hormuz has been largely shut by war.

It has been moving 4 million to 5 million barrels per day, amounting to 4% to 5% of global supply, sparing Saudi Arabia the brunt of the disruption that has crippled other Gulf oil and gas exporters.

There was no immediate claim of responsibility for the strikes on the pipeline. Satellite images showed black smoke rising from an area of the pipeline south of Medina. The attack resulted in some injuries and damage that was being assessed, the Saudi Foreign Ministry said without detailing the impact on exports.

US President Donald Trump, visiting Ireland to attend a golf tournament at one of his resorts, said Iran was probably to blame.

On Saturday, the Saudi Civil Defence said in a statement that a projectile fired by the Houthis had injured two people in Jazan region, and damaged several buildings, including a mosque.

SAUDI LEADER ASKS FOR MILITARY HELP

Oil prices shot up over the past week and the retail price of diesel in the United States surged past a record $6 a gallon as the United States and Iran both fired on tankers and the Iran-aligned Houthis in Yemen advanced along the Red Sea, potentially extending disruptions to another major oil route.

Washington now faces a dilemma over whether to help the Saudis fight the Houthis, risking further expansion of the war.

Saudi Arabia's de facto ruler, Crown Prince Mohammed bin Salman, phoned Trump on Thursday and asked for US military help fighting the Houthis, three sources told Reuters. They said the prince was told that Washington would not intervene directly for now but would help with intelligence.

Trump confirmed on Saturday that he had spoken to the crown prince, and said the Houthis had also phoned his administration and asked Washington not to become directly involved in the conflict.

Four Yemeni government sources told Reuters that the Houthis had seized the strategic island of Perim on Friday in the middle of the Bab el-Mandeb strait — the "Gate of Tears" at the mouth of the Red Sea.

IRANIAN OFFICIAL PLAYS DOWN OMAN MEETING

There have been no talks between the United States and Iran to end the conflict since a June agreement that collapsed within weeks.

In a post on X on Saturday, Ebrahim Azizi, head of the Iranian parliament's national security committee, said: "As long as the American side does not accept all of Iran's conditions, dialogue and negotiation are of no use."

Iran's Foreign Ministry announced on Friday that Iran would be attending a meeting with Gulf Arab states in Oman on Monday, at which the future of the Strait of Hormuz would be discussed.

But a senior Iranian official, speaking to Reuters on condition of anonymity on Saturday, played down the chances of a breakthrough, saying the meeting, called at Oman's initiative, was intended to discuss issues including the strait but was not expected to yield a signed agreement.

An agreement on routes through the strait between Iran and Oman will be presented at the meeting on Monday, which will also be attended by Iraq, but the strait will not reopen unless seven conditions conveyed by Iran to the US are met, a source told Tasnim news agency, without elaborating.

Iran wants its control of the Strait of Hormuz to be recognised, allowing it to collect fees from ships that use it, which Washington rejects. Oman, which controls the opposite bank of the strait, says it is negotiating with the agreement of other regional states.

A growing consumer push to buy Canadian and boycott US products is reshaping supermarket shelves in Canada, forcing grocers to improve country-of-origin labeling and secure new sources of supply.

In Ontario, the president of independent grocer Vince’s Market, Giancarlo Trimarchi, turned to Facebook to show customers that most produce on the shelves of his stores is Canadian after receiving angry emails and comments about the grocer stocking US produce.
A bitter trade war between the United States and Canada has made consumers more conscious of where their dollars go.

“Buy Canadian” movements started last year after US President Donald Trump imposed tariffs on Canadian goods.

They have intensified in recent weeks after trade talks broke down and Trump signed an executive order to change the name of to Lake America. “It is a lot more aggressive this time around than last year,” Trimarchi said in an interview. Trump told reporters in Dublin on Saturday that Canada is eager to reach a trade deal with the United States and that an agreement could come “fairly soon,” while repeating his complaints that Canada has treated US farmers unfairly and should remove tariffs.

Trimarchi’s four stores, spread across the Greater Toronto Area, now have about 90 percent Canadian produce.

Trimarchi is now sourcing strawberries from Quebec instead of the United States and said he has cut his advertising budget as the changes have pressured operating costs.

“We were always put in a position where you had to balance quality versus price. Now it’s quality versus price versus country of origin,” Trimarchi said.

Loblaw Cos, Canada’s largest food retailer, in August brought back large signs featuring a maple leaf in its produce and fresh-food sections after a brief hiatus to flag the Canadian origins of products.

Loblaw also reintroduced a “T” tag to inform customers which products are affected by tariffs and make Canadian products easier to identify.

Metro, the country’s third-largest grocer, said it would continue to prioritize local Canadian products in the current context.

“There has been a permanent change in the Canadian psyche,” said Gary Sands, senior vice president of public policy and advocacy for the Canadian Federation of Independent Grocers.

Canada is the world’s fifth-largest importer of fresh vegetables by value. The United States is still the biggest supplier of fresh produce, accounting for more than half of the imports, followed by Mexico.

However, the share of Canada’s vegetable imports from the United States fell to 62.6 percent in July, the latest government data showed, from 69 percent in the same month of 2023, before Trump was elected.

More than half of Canada’s fruit imports came from the United States as of July. Trade talks broke down on August 21, spurring a new round of tariffs and counter tariffs.

John Ambard, 27, a software engineer who lives in downtown Toronto, said he has tried to avoid buying American products when possible, preferring to support Canadian brands and businesses.

Ambard said he checks product labels and researches companies online to identify Canadian-made goods.

“I think, honestly, if I can support Canadian products and Canadian institutions through these tough times, I think that’s a way to help in my small way,” Ambard said.

“I’m a little bit mad with America right now with how things are going. The attitude has just not been that of a friend.”

Canada’s harsh winters present a challenge for fresh produce, and grocers typically rely on greenhouses, stocked root vegetables or imports, which are usually more cost-effective.
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But the change in sentiment toward the United States could push grocers to explore more local suppliers, experts say, while Canada invests in building a more self-reliant food system.

The Canadian government is investing about C$3 billion over 10 years to build greenhouses to increase production during the harsh winter months.

It is also trying to lower food inflation — among the highest in the Group of Seven developed nations — by increasing the domestic food supply.

Gordon Dean, the owner of Mike Dean Local Grocer, which operates stores in rural Ontario and Quebec, said his stores are now selling more produce from countries such as Spain, Brazil and Honduras than they previously did.

“There’s nobody running back to the US supply chain because once the new supply chains are established, they’re far more diversified. We’re in a safer position,” Dean said.

However, Dean said restrictions and differing regulations between provinces have made it harder to move food products across Canada, leaving many grocers reliant on suppliers south of the border.

“Nationalism is now trumping economics to a degree that might switch if the relationship improves,” said Mike von Massow, professor of food, agriculture and resource economics at the University of Guelph.

He said the Canada-US relationship may never fully return to where it was, but a future easing of tensions, particularly under a new US administration, could prompt a shift back to American products because they are often cheaper than other alternatives.