Money is getting cheaper in Bangladesh, but the falling cost of credit reflects a sluggish economy rather than a recovery.

Interest rates have steadily declined as banks accumulate vast excess liquidity amid weak credit demand. Simultaneously, Bangladesh Bank has shifted towards an easier monetary stance by cutting its benchmark policy rate, placing further downward pressure on money-market yields.

Healthy commercial banks have trimmed both lending and deposit rates by 1-2 percentage points in recent months. This comes as private-sector credit growth dropped to 4.47% in June – the lowest level in 33 years. Average deposit rates at most institutions now hover between 7% and 8%, while lending rates range from 10% to 11%. With minimal credit demand from businesses, banks have piled into government securities, driving yields on all Treasury bills and bonds down into single digits.

By June 2026, total excess liquidity in the banking sector surged by 39.40% year-on-year to exceed Tk4 lakh crore. The foreign-exchange market shows a similar imbalance: robust dollar inflows and weak import demand have created upward pressure on the taka. To prevent sharp currency appreciation and protect exporters and remitters, the central bank resumed dollar purchases from commercial banks on 1 September, buying $50 million at Tk122.75 – well above market remittance rates of Tk122.30-122.60. Gross foreign-exchange reserves subsequently rose by nearly $5 billion over the year, reaching $36.33 billion by 3 September.

This rate decline occurs against a fragile macroeconomic backdrop marked by sluggish growth, persistent inflation, and high unemployment, raising fears of stagflation. Although inflation eased to 8.26% in August, it remains comfortably above the government's 7.5% target for FY27. Because prices were already elevated last year, this ongoing inflation compounds a high baseline, keeping consumer prices uncomfortably high.

In response, Bangladesh Bank is injecting liquidity via stimulus measures and planning further monetary easing to reignite investment. However, economists and bankers warn that injecting liquidity without addressing structural bottlenecks will fail to revive real demand and could aggravate inflation.

Why is Bangladesh Bank cutting rates?
In July, Bangladesh Bank lowered its policy rate by 50 basis points to 9.5% to spur private investment. This marked a clear departure from the tight monetary stance maintained since 2022, during which the policy rate was gradually raised from 5% to 10% and kept there for nearly two years from October 2024.

"Our earlier assumption was that raising the policy rate would make money expensive, reduce liquidity, and curb inflation," a senior Bangladesh Bank executive said on condition of anonymity. "However, that mechanism failed in our context. Despite keeping the rate high for two years, inflation remained stubborn."

The official added that elevated interest rates instead drove up corporate financing and production costs, which firms passed directly to consumers. "We are now testing a supply-side strategy: lower the policy rate to reduce production and import costs. If supply expands and unit costs fall, prices should moderate."

Easier money risks fueling inflation
Md Ezazul Islam, Director General of the Bangladesh Institute of Bank Management, argues that lower interest rates are a symptom of economic paralysis. "Economic activity remains constrained by gas and electricity shortages, the lingering aftershocks of recent political instability, and global uncertainty," Islam noted.

While deposit growth has remained steady, banks cannot generate matching credit due to absent loan demand. "Banks naturally redirect excess funds into government Treasury bills and bonds. With heavy government borrowing and intense competition among banks for these safe assets, yields drop. That is basic market dynamics," Islam said, adding that the trend will persist until private credit demand rebounds.

Islam cautioned that monetary easing without productive capacity risks worsening inflation. "Job creation and investment are primarily fiscal responsibilities. If the government wants to stimulate the economy, it must deploy fiscal tools through the budget – such as tax relief, infrastructure spending, and securing energy supplies – rather than over-relying on central bank liquidity."

Structural hurdles mute credit demand
Despite lower borrowing costs, credit demand shows no sign of recovery. City Bank, one of the country's prominent private lenders, recorded just 7%-8% credit growth over the first nine months of the year – half its historical average – despite double-digit deposit growth.

A senior executive at the bank noted that expected credit demand failed to materialise even after post-election political uncertainty subsided. "Even when we offer competitive rates to large corporate clients, many refuse to borrow due to persistent gas shortages," the executive said. Consequently, City Bank redirected surplus liquidity into government debt and deployed over Tk 2,000 crore into the central bank's stimulus fund.

The executive also cast doubt on the official 4.47% private-sector credit growth figure for June. "Real growth is likely negative; much of that figure reflects forced loans and accrued interest on existing facilities."

He noted that the central bank's Tk60,000 crore stimulus package equals roughly 3% of total bank loans. Fully implementing it would only push credit growth to 7%-8% – far below the 15%-16% required to support the government's 6.5% GDP growth target for FY27. "Furthermore, banks will not take the risk of lending to distressed or insolvent businesses simply because money is cheap," he added.

Certainty over cheap money
Tareq Refat Ullah Khan, managing director of BRAC Bank, emphasised that falling rates stem directly from surplus liquidity rather than intentional economic stimulus. "When credit growth halts, money builds up. Lowering rates alone cannot create demand if the wider business environment remains unsupportive."

BRAC Bank has lowered corporate lending rates to 11%-12% (with select prime clients receiving 9%-10%), while SME rates have dropped to 14%-15% and retail rates to 11%-12%. Deposit rates across sound banks have settled around 8%-9%. Distressed banks continue offering 11%-12% on deposits solely to maintain liquidity, rather than to finance new lending.

Abul Kashem Md Shirin, former managing director of Dutch-Bangla Bank, observed that major industrial borrowers are holding back expansion plans due to broader uncertainty. "When liquidity is abundant and credit demand falls, rates drop naturally. Bangladesh Bank spent years trying to force interest rates down through directives, but market forces are finally driving the adjustment automatically – which is precisely how a market economy ought to function."

US consumer prices have accelerated in August, while a key measure of underlying inflation posted its largest increase in four months, reinforcing expectations that the Federal Reserve will raise interest rates next week.

The Labor Department's Consumer Price Index report on Friday followed strong readings in several components of the Producer Price Index released on Thursday that feed into the Personal Consumption Expenditures price indexes, the inflation measures the US central bank tracks for its 2 percent target. The two reports led economists to think that PCE inflation excluding the volatile food and energy categories picked up in August.

Financial markets initially priced in a 91 percent chance of a quarter-point rate hike at the Fed's meeting on Tuesday and Wednesday, before settling back to 87 percent, CME's FedWatch tool showed. That was up from 72 percent on Thursday. The Fed's benchmark overnight interest rate is currently in a 3.50-3.75 percent range.

Most economists said the firmer inflation readings, combined with signs of the labour market regaining its footing in August, would compel Fed officials to raise borrowing costs not only next Wednesday, but possibly again in October or December.

They argued that with the Iran war continuing, the energy shock would spread through the economy. They also expected an AI buildout to drive inflation. Crude oil prices climbed back above $100 a barrel this week, while the US national average diesel price surpassed $6 a gallon for the first time.

"Energy inflation does not stay at the gas station. It travels by truck, aeroplane and cargo ship into nearly every store in America," said Sung Won Sohn, a finance and economics professor at Loyola Marymount University. "The Fed is now more likely than not to raise its policy rate ... it cannot afford to let an energy shock become an everything shock".

The CPI increased 0.4 percent last month after edging up 0.1 percent in July, the Labor Department's Bureau of Labor Statistics said. In the 12 months through August, consumer inflation advanced 3.4 percent after rising by the same margin in July. The rise in the CPI was in line with economists' expectations.

A 3.9 percent jump in petrol prices after two straight monthly declines accounted for more than a third of the increase in the CPI over the month. Other motor fuels, which include diesel, surged 9.6 percent. They surged 44 percent year-on-year in August.

There was, however, some respite for consumers at the supermarket. Food prices edged up 0.1 percent for a second straight month. Grocery prices were unchanged amid muted increases in the costs of meat and fish. Fruit and vegetable prices fell 0.4 percent over the month, weighed down by a 6.2 percent drop in the cost of lettuce because of a Cyclospora outbreak.

But egg prices increased 2.9 percent, while non-alcoholic beverages cost more, as did dairy and related products. Food prices advanced 2.7 percent year-on-year in August and the annual increase in consumer inflation is outpacing wage growth. Inflation-adjusted average hourly earnings fell 0.3 percent over the year in August.

"Inflation-adjusted wage growth contracted for a fifth consecutive month in August," said Gregory Daco, chief economist at EY-Parthenon. "This is the longest income squeeze since 2012, excluding the post-pandemic period when public assistance kept income growing despite historical job losses."

Frustration over rising cost of living

Frustration over the higher cost of living has led to a sharp erosion in President Donald Trump's approval ratings and could cost his Republican Party control of the US Congress in the November midterm elections, according to analysts.

The growing disenchantment was also evident in the University of Michigan's Surveys of Consumers, which showed its Consumer Sentiment Index tumbled to 47.8 in early September from 51.7 in August. The deterioration in sentiment was among both Democrats and Republicans. Consumers also anticipated higher inflation over the next 12 months and five years.

Wall Street stocks rose as oil prices retreated, though crude remained on course for a weekly gain of more than 8 percent. The dollar was steady against a basket of currencies. US Treasury yields initially rose, with the benchmark US 10-year note yield rising to 4.9915 percent before easing back to 4.92 percent.

Excluding food and energy, the CPI rose 0.3 percent last month, the largest increase since April. That was above economists' expectations for a second straight month of a 0.2 percent gain. Core CPI increased 2.4 percent year-on-year in August after rising 2.5 percent in July. Core CPI inflation was lifted by a 5.9 percent jump in mobile phone costs, likely related to service changes at AT&T.

Airline fares increased 2.7 percent, reflecting higher jet fuel costs. The cost of education and communication services rose solidly, while rents rose 0.2 percent and prices for hotel and motel rooms rebounded 2.4 percent. But healthcare costs eased and motor vehicle insurance fell 0.8 percent.

Core goods inflation was benign, suggesting the pass-through from import tariffs was fading, though an escalation in trade tensions between the United States and Canada posed an upside risk. There were rises in the prices of new motor vehicles as well as used cars and trucks. Prices for prescription medication were unchanged.

With the CPI and PPI data in hand, most economists expected core PCE inflation to increase 0.3 percent after gaining 0.2 percent in July. Estimates for the year-on-year increase in core PCE inflation converged around 3.4 percent. Core PCE inflation advanced 3.3 percent in the 12 months through July. The August PCE inflation report will include changes to the methodology.

Fed Chairman Kevin Warsh said last month the central bank will "have work to do" if policymakers don't get the confidence they need that inflation is heading down to 2 percent. But Trump is pressuring the Fed to cut rates, posting on social media last week, "Lower the rate or I'll stop trading with countries with which we have a deficit".

Economists have blamed what they called political intimidation for the surge in yields on long-term US government bonds.

"The markets are doing the Fed's job for it by pricing the yield curve significantly higher, and the Federal Open Market Committee is now behind the curve," said Brian Bethune, an economics professor at Boston College. "At this point, Warsh and the FOMC have painted themselves into a corner".

US consumer inflation was unchanged at 3.4 percent in August, government data showed Friday, with persistent high prices raising expectations that the Federal Reserve will hike interest rates in the world’s largest economy next week.

Consumer price index (CPI) inflation remains significantly elevated from earlier in the year and well above the Fed’s long-term two-percent target.

US households have been battered by years of high prices since the pandemic -- when consumer inflation hit 9.1 percent -- and Americans’ ability to afford basics like food and fuel will be a key issue in November’s midterm elections.

Several Fed policymakers have indicated they would be prepared to raise interest rates if August inflation data did not show a slowdown in price increases. The central bank’s rate-setting committee meets next week.

Any move to raise rates will be sure to anger US President Donald Trump, who has launched an unprecedented campaign against the Fed’s independence, demanding policymakers lower interest rates to spur economic activity.

The US president launched a criminal probe against previous Fed chair Jerome Powell, is attempting to fire another Fed governor and last week even threatened to cut trade ties with certain countries if the Fed raised rates.

Trump is under pressure over the high cost of living, with Democrats seeking to wrest control of both houses of Congress in November and block the Republican’s agenda in the final two years of his term.

Fuel price increases accounted for one-third of the monthly rise in consumer prices, Friday’s data showed.

The price of gasoline in the US is up 44 percent since the start of the Iran war in February, according to AAA motor club data.

Record diesel prices -- which hit an unprecedented $6 per gallon in the United States on Friday -- have also driven up transportation, farming and construction costs.

The index for inflation excluding volatile fuel and food prices -- so-called “core” inflation -- rose 2.4 percent in August year-on-year.

“The renewed march higher in oil, gasoline and diesel prices add to concerns that higher energy prices could spill over to other goods and services and inflation expectations,” said Kathy Bostjancic, chief economist at Nationwide, in a note.

Market expectations of a rate hike surged in the wake of the inflation reading, with the probability of a 25-basis-point hike at 87 percent, according to CME’s FedWatch tool.

INFLATING HITTING HARD

High prices have been hitting the US economy hard, with wholesale inflation picking up more than expected in August, according to government data on Thursday.

The Fed last raised rates three years ago, capping a hiking cycle it began in the pandemic to combat surging prices.

Inflation has declined steadily from its 2022 peak, but never hit the Fed’s two-percent target. In February it fell to 2.4 percent but subsequently surged to three-year highs on the back of Trump’s war on Iran.

The United States and Israel launched strikes on Iran and killed its leadership at the start of the war, plunging the Middle East into chaos as Tehran targeted US regional allies and choked off a key energy trade route.

The Fed has gradually lowered rates since 2024 but has held them steady between 3.50 percent and 3.75 percent this year as inflation climbed following the Middle East war and as the effects of Trump’s tariff war filtered through the economy.

Democratic Senator Elizabeth Warren slammed Trump over the latest inflation figures.

“Today’s data confirms that Americans continued to pay more for housing, airline fare, and childcare in the month of August, while their wages have failed to keep up with inflation for five consecutive months,” she said.

Many US households have been struggling in recent years, and on Friday a gauge of consumer sentiment by the University of Michigan was near an all-time low.

“With a resurgence in fuel prices and trade tensions, consumers anticipate greater pressures on their pocketbooks to come,” said survey director Joanne Hsu.

Some 110,364 registered farmers across Bangladesh will receive Tk2,500 each under the pilot phase of the government's Farmer Card programme, Agriculture Minister Mohammad Amin Ur Rashid said today (12 September).

The government plans to eventually bring more than 20 million farmers under the programme within the stipulated timeframe, he said.

The minister disclosed the plan during a press briefing in Fulgazi upazila of Feni, where he inspected preparations for Prime Minister Tarique Rahman's visit and the inauguration of the Farmer Card, Family Card and monthly honorarium allowances for imams, muezzins, khadems, priests and sebayets.

The inauguration programme is scheduled for 17 September, with preparations underway, the minister said.

"On the opening day of the pilot programme, 110,364 registered farmers across the country will receive Tk2,500 each as an incentive. A total of 7,643 farmers in Feni district will receive the card," he said.

The programme will be gradually expanded to every upazila, union and block across the country, he added.

The minister said farmers would be selected without discrimination and that the programme would cover all categories of genuine farmers.

"All genuine farmers - marginal, small, landless, medium and large - will be brought under the programme," he said.

The initiative aims to ensure farmers can obtain fertiliser and seeds at fair prices while receiving fair returns for their agricultural produce.

Government assistance will also be delivered to genuine farmers in a more organised and transparent manner through the Farmer Card, Amin Ur Rashid said.

Responding to questions about fertiliser shortages, the minister said there was no shortage in the country and warned against attempts to create an artificial crisis.

"Anyone attempting to create an artificial shortage, harass farmers or sell fertiliser at inflated prices will face strict action. The government has a zero-tolerance policy towards irregularities and corruption involving fertiliser," he said.

He said authorities had received reports that fertiliser was being stored outside authorised dealers' premises.

"If fertiliser that is supposed to be with a dealer is found in another warehouse or with an individual, the matter is being investigated," he said.

The Ministry of Agriculture has formed several teams to monitor the situation, he added. The teams are working from 8am to 10pm and will take prompt action when they receive information about fertiliser-related irregularities.

The government is also prioritising agricultural modernisation and increased production in char areas, the minister said.

Plans are being formulated to assess how different chars across the country can be modernised and how agricultural output in those areas can be increased, he added.

The momentum behind the Comprehensive Economic Partnership Agreement (CEPA) should be turned into tangible joint-venture manufacturing and foreign investment, said South Korean Ambassador to Bangladesh Kim Ji-joon.

He stressed the need to ensure a level playing field for formal investors and introduce a more investment-friendly tariff structure to attract greater Korean investment.

Kim made the remarks as the chief guest at a seminar titled “Navigating the National Budget 2026-2027: Opportunities for Business and Investors” at Sheraton Dhaka in Banani on September 9.

The Korea-Bangladesh Chamber of Commerce & Industry (KBCCI) organised the seminar, according to a press release.

The ambassador also called for integrated industrial clusters, predictable incentives for joint ventures, and simpler visa and work-permit procedures for foreign experts.

He urged stronger digital links among customs, ports, banks and tax authorities, along with effective investor aftercare and reliable energy supplies.

Kim reaffirmed Korea’s commitment to being a long-term partner of Bangladesh in investment, technology transfer and manufacturing know-how.

Welcoming the participants, Shahab Uddin Khan, president of KBCCI, said changes in tax, value-added tax (VAT), customs duties and import policies directly affect business costs, investment decisions and future planning.

He reaffirmed KBCCI’s commitment to strengthening Bangladesh-Korea economic ties through greater trade and investment, joint ventures, technology transfer and industrial cooperation.

Snehashish Barua, a chartered accountant and a director of SMAC Advisory Services Ltd, delivered a keynote titled “Finance Act 2026 Unveiled: Analysis of Key Tax, VAT, Customs & Regulatory Changes”.

He provided a practical analysis of major fiscal and regulatory changes and their implications for businesses and investors.

Md Moazzem Hossain, member of the National Board of Revenue (NBR), and Nahian Rahman Rochi, executive member of Invest Bangladesh, attended the event as special guests.

The seminar provided a platform for dialogue between policymakers and the private sector and explored new opportunities for businesses and investors. It also highlighted KBCCI’s role in strengthening the longstanding economic ties between Bangladesh and South Korea.

Do-Kee Park (Harry), chief executive officer of KBCCI, was also present, among others.

The Dhaka bourse closed the week's last session in the red, extending its losing streak to three consecutive sessions.Geographic Reference

Apart from a correction in the broad index, turnover value remained insignificant as investors stayed hesitant about fresh participation amid intensifying macroeconomic tensions and the lowest credit growth of 4.47 per cent.

The market opened the day's session positively, but the DSEX, the broad index of the Dhaka Stock Exchange (DSE), soon lost its momentum.

The DSEX eventually closed at 5,515 points, down 22 points from the previous session, while turnover value rose 4.75 per cent to Tk 5.44 billion.

The broad index lost 52 points over the last three sessions.

Insiders said both the newly emerging macroeconomic tensions and issues linked to regulatory inspections had made investors worried about the future direction of the capital market.

There are fears of a further rise in inflation following a fresh surge in oil prices in the global market. International oil prices crossed $100 per barrel this week.

Consumers will have to bear the adjusted prices of products following the rise in oil prices. For example, the association of the country's bakery owners has already decided to adjust the prices of bakery products from Saturday.

As a result, fresh worries over rising expenditure on basic needs weighed on investors.

All sectors of listed companies, except mutual funds, declined marginally on the premier bourse on Thursday.

Grameenphone, British American Tobacco Bangladesh and Square Pharmaceuticals were among the top index draggers.

As the majority of blue-chip stocks declined, the DS30 index lost 7.71 points to close at 2,095 points.

Meanwhile, investors are awaiting disclosures of quarterly statements for July-September with bated breath.

Manufacturers, who have been enduring a steep energy crisis and may have cut production as a result, are likely to report compromised bottom-line growth.

According to insiders, some regulatory measures, such as the exchange's move toward more frequent inspections of brokerage firms, have also played a role in reducing speculative transactions.

Mutual funds dominated the list of top 10 gainers on Thursday. All funds saw appreciation as investors took positions ahead of liquidation to realise profits based on NAV (net asset value).

CAPM BDBL Mutual Fund 01 was the top gainer, rising 9.72 per cent, while Reliance Insurance was the worst performer, declining 3.96 per cent on the DSE.

The government has stepped up its oversight of public financial management, issuing a strict directive to all government ministries, divisions, and institutions to revise and update their budget-implementation plans (BIPs), according to the finance ministry.

Under the initiative, the finance ministry has asked various state agencies, including ministries, divisions, and other government entities, to urgently revise their BIPs to align public spending with the government's election manifesto, reform agenda, and priority programmes for the fiscal year 2026-27.

"The ministry also sent the instruction to the cabinet secretary, comptroller and auditor general, chief election commissioner, and secretaries of more than 20 ministries and divisions, including home, planning, finance, economic relations, railways, disaster management, foreign affairs, education, and youth and sports," an official involved in the matter said.

The Finance Division has set September 15 as the deadline for completing the exercise and updating the plans in the iBAS++ BIP module, according to a directive issued on September 7.

The directive comes as the government moves to strengthen monitoring of budget execution and ensure that spending plans are consistent with its newly set policy priorities.

The Finance Division said the FY27 budget was prepared considering the government's election manifesto, reform programmes, and priority areas. It also noted that ministries and divisions had already prepared their annual procurement plans (APPs) in line with the government's priority programmes.

They have, therefore, been instructed to review their existing BIPs and make necessary changes so that the budget implementation plans are consistent with the APPs and government priorities.

The instruction was issued under Section 15 of the Government Financial and Budget Management Act 2009, which provides for regular monitoring of progress in budget implementation.

The Finance Division said the methodology and necessary forms for preparing BIPs were incorporated into Budget Circular-1 issued on April 20 this year. The BIP module has also been developed in the iBAS++ system for ministries, divisions, and other government institutions.

The latest instruction effectively seeks to bring budget execution, procurement, and government priorities under a common implementation framework, allowing the Finance Division to monitor whether spending is progressing according to approved plans.

The ministries and divisions have been asked to complete the revised BIPs and inform the Finance Division by September 15.

The government formulated a Tk 9.38 trillion national budget for FY27, with Tk 3.0 trillion earmarked for the annual development programme (ADP).

When contacted, a senior official of the finance ministry said the move signalled the government's bid to enforce greater financial discipline and closer oversight of budget execution, particularly by linking procurement plans with the policy priorities reflected in the FY27 budget.

The Insurance Development and Regulatory Authority (IDRA) will facilitate the payment of Tk23.03 crore in long-pending insurance claims to 5,868 policyholders today (14 September) under the second phase of its claim settlement programme.

The claims, totalling Tk23,03,56,971, involve five life insurance companies, according to the regulator.

IDRA is arranging the funds from various sources, including assets and security bonds of the concerned insurers, to settle legitimate claims that have remained unpaid for an extended period.

Under the second phase, Padma Islami Life Insurance Company will pay around Tk12 crore to 3,600 policyholders.

Homeland Life Insurance Company will settle Tk4.98 crore for 1,145 policyholders, while Fareast Islami Life Insurance Company will pay Tk5 crore to 580 policyholders.

Sunflower Life Insurance Company will pay Tk55.30 lakh to 300 policyholders, and Sunlife Insurance Company will settle Tk50.18 lakh for 243 policyholders.

The initiative is aimed at expediting the settlement of valid long-pending claims and restoring customer confidence in the insurance sector, IDRA said.

In the first phase, IDRA facilitated the payment of Tk14,51,03,146.58 in insurance claims to 2,549 policyholders of seven life insurance companies on 3 September.

Bangladesh received $6.85 billion in remittances from July 1 to September 9 of fiscal year 2026-27, up 15.9 percent year-on-year, according to Bangladesh Bank data released Thursday.

The country received $5.918 billion during the same period of FY26.

Bangladeshi expatriates living in different countries sent home $1.031 billion in remittances in the first nine days of September 2026, up 1.3 percent from $1.018 billion during the corresponding period a year earlier, the central bank data showed.

On September 9 alone, the country received $127 million in remittances.

Bangladesh received $35.34 billion in remittances through formal banking channels in FY26.

A unit of the 1,600-megawatt Adani power plant in India's Jharkhand has shut down following "technical fault" that further tightened Bangladesh's power-supply situation amid ongoing gas, coal and liquid-fuel shortages.

Sources say the shutdown has cut down the plant's generation by more than half.

The plant was generating more than 1,400 megawatts on Thursday night before one of its units went offline around midnight.

By Friday noon, its generation had fallen to 736mw, according to sources at Bangladesh Power Development Board (BPDB) and Power Grid Company of Bangladesh (PGCB).

At 3:00am on Thursday, grid supply came down to 12,907 megawatts against 15,776 MWs in demand, leaving a 2,869mw shortfall.

Officials familiar with the plant said a technical glitch had developed in the boiler of one of its units. "The boiler may take around 48 hours to cool before repair can begin, meaning it could take several days for generation to return to normal."

The BPDB signed a power-purchase agreement with the plant authority in 2017. The plant has supplied more than 1,500 megawatts at times, based on Bangladesh's demand.

Meanwhile, the country's power generation has come under increasing pressure for worsening energy shortage and technical glitches at some power plants.

According to BPDB sources, the gas shortage has persisted for more than two months, reducing generation from gas-fired power plants by up to 1,500 MWs. Several coal-fired plants are also operating below capacity due to fuel shortages and technical problems.

Latest generation data show that BPDB generates 13,000-14,000 MWs against peak-hour demand exceeding 16,000 MWs, leaving a significant supply deficit. Current production relies primarily on gas-fired plants (5,000 MWs), coal-fired units (4,500 MWs), and liquid-fuel plants (2,000-3,000 MWs).

Generation at the Payra power plant in Patuakhali has also been affected, with one unit remaining offline for several days due to coal shortages and a technical fault. Another power plant in Patuakhali is also facing a coal shortage.

Sources said authorities were trying to offset the shortfall by increasing generation from oil-fired power plants to make do with.

However, the additional generation has not been sufficient to fully ease the pressure on the power-supply system.

Load shedding has also increased as electricity demand rises with higher temperatures even at the fag-end of the outgoing summer.

Despite Friday being a weekly holiday, load shedding exceeded 2,500 MWs in the morning. It later fell to 414 MWs at about 2:00pm as generation increased.

The shutdown of one of Adani's units, along with fuel shortages and technical glitches at other plants, is likely to put additional pressure on the country's power- supply system over the coming days.

Bangladesh needs more quality companies to enter the capital market to deepen the market and reduce businesses' heavy reliance on bank financing, Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan said today (12 September).

"Good companies need to enter the capital market. We have to encourage them to do so," he said while speaking as the chief guest at the Capital Market Growth Dialogue at the Chattogram Chamber of Commerce and Industry (CCCI) conference hall in Chattogram this afternoon.

CCCI and IDLC Investment Limited jointly organised the dialogue.

Khan said Bangladesh's stock market remains relatively small compared with several regional markets when daily trading is measured against total market capitalisation.

Citing recent figures, he said the ratio was around 0.14% in Bangladesh last week, compared with 0.19% in Pakistan, 0.23% in Thailand, 0.26% in India and 0.21% in Vietnam.

"If our daily trading volume reaches Tk1,500 crore, the ratio would rise to around 0.39%," he said, stressing that increasing both the number and quality of listed companies is essential for sustained market growth.

The BSEC chairman said the regulator was working to simplify the process of bringing good companies to the market and considering new options for initial public offerings (IPOs) and direct listings.

He also said the commission planned to move fully towards an international-style book-building mechanism to improve price discovery.

Masud stressed the need for a clear distinction between the money market and the capital market.

According to him, banks should primarily provide short-term financing, while businesses should rely on the capital market for longer-term funding.

"Banks taking deposits for one year and lending for eight years is highly risky," he said, referring to the asset-liability mismatch created by long-term bank lending.

He said Bangladesh's underdeveloped capital market had forced banks to take on a larger role in long-term corporate financing, creating additional pressure on the banking sector.

CCCI President Amirul Haque urged the BSEC to change its institutional approach towards businesses and treat companies as partners rather than subordinates.

He called for fair treatment of listed and prospective companies, saying bureaucratic hurdles and inconsistent treatment discourage businesses from entering the capital market.

IDLC Chairman Kazi Mahmood Sattar said Bangladesh also needs to develop the debt segment of the capital market alongside equity financing.

Companies undertaking large infrastructure and development projects often require financing for 15 to 20 years, which banks cannot efficiently provide, he said.

"The capital market has two sides. We need to operate not only on the equity side but also on the debt side," Sattar said.

Developing long-term bonds, mutual funds and other capital market instruments would help finance large projects while reducing pressure on commercial banks, he added.

DSE Chairman Mominul Islam and CSE Chairman AKM Habibur Rahman also spoke as special guests at the dialogue.

US-Bangla Airlines plans to place another major order for leased aircraft worth $4-5 billion within the next 60 days, Managing Director Abdullah Al Mamin said today (12 September).

"We will order more leased aircraft worth $4-5 billion within the next 60 days," he said at a policy conclave titled "World-class aviation for Bangladesh's economic progress", organised by The Daily Bonik Barta at the United Convention Centre in Kurmitola, Dhaka.

However, Al Mamin did not disclose how many aircraft would be leased under the planned deal.

Asked about the aircraft manufacturer, Al Mamin told The Business Standard that the airline could not disclose at this stage whether the aircraft would be supplied by Boeing or Airbus.

Earlier, US-Bangla announced plans to acquire 21 Boeing aircraft through a $1.5 billion leasing deal as part of a major fleet expansion programme.

US-Bangla unveils $1.5b leasing deal to add 21 Boeing aircraft
The announcement was made on 29 July at the airline's "Beyond with Boeing" event in Dhaka.

The deal includes 15 Boeing 737-8 aircraft and six Boeing 737-800 aircraft, with all 21 aircraft scheduled for delivery by the end of 2027.

US-Bangla currently operates 25 aircraft, making it the largest fleet among Bangladesh's local airlines.

Civil Aviation and Tourism Minister Rashiduzzaman Millat attended the event as the chief guest, while State Minister for Foreign Affairs Humayun Kabir was the special guest.

Former Civil Aviation Authority of Bangladesh Chairman Air Vice Marshal (retd) Mahmud Hussain also attended the event.

Bonik Barta Editor Dewan Hainf Mahmud delivered the welcome speech.

The conclave was supported by AirAsia, United Group and US-Bangla Airlines.

The government may revert to monthly value-added tax (VAT) returns and payments from the current quarterly system launched this July amid concerns over monitoring difficulties, operational complications and increased collection risks arising from the new arrangement.

Following adverse feedback from field-level offices, the National Board of Revenue (NBR) has requested the finance ministry to take steps to reverse the provision, according to officials familiar with the matter.

“We have completed preparations on our side. The decision now awaits Prime Minister Tarique Rahman’s approval,” said an NBR official, seeking anonymity.

The development comes as VAT collection, which accounts for nearly 38 percent of the NBR’s total revenue, fell by about 21 percent year-on-year in the first two months of FY2026-27, according to provisional data.

The revenue board collected Tk 9,302 crore in VAT in July, down from Tk 11,547 crore a year earlier. Collection fell further in August to Tk 8,362 crore, compared with Tk 11,081 crore in the same month last year.

As a result, VAT collection during July-August stood at Tk 17,663 crore, down from Tk 22,628 crore in the corresponding period of the previous fiscal year.

The NBR, however, does not yet have sufficient data to determine whether the new system has affected overall VAT collection, officials said. Businesses have until the end of September to submit their returns for the first quarter under the new arrangement.

WHAT THE NEW SYSTEM OFFERS

Officials explained that the previous system allowed taxpayers to retain the VAT money for up to 30 days and pay it by the 15th of the following month.

Under the new quarterly system, businesses can now retain the VAT collected from consumers for up to three months before making the payment.

“Now that the period has been extended to three months, large businesses can keep the VAT collected from consumers and earn interest on it or use it in other ways,” an official of the Dhaka Commissionerate said, seeking anonymity.

The official said the three-month payment window gives businesses an opportunity to earn interest on VAT they have already collected from consumers but have yet to remit to the government.

“Suppose you have Tk 200 crore in one month and another Tk 200 crore in the next -- Tk 400 crore in total. If you put that money into Treasury bonds, DPS or FDRs, you can earn interest from it,” he said.

“But this is actually government money. You have already collected it from consumers against each invoice,” he added.

Another official, also seeking anonymity, said the government could not afford to let public funds remain with businesses for an extended period, particularly as it has to pay interest on its own borrowings.

FIELD OFFICES SEEK RETURN TO MONTHLY SYSTEM

According to the Dhaka Commissionerate official, the NBR does not yet have all the systems and monitoring tools in place that are needed to properly manage the quarterly VAT mechanism.

“We are facing problems both in monitoring and in terms of risk,” he said. “We used to track revenue collection monthly by circle, division and unit. That monitoring tool is no longer available to us.”

“One weakness of our department is that we have not yet established a system to deposit VAT into the treasury immediately against each invoice. This is a systemic weakness on our part,” he added.

“We demand that the return should also be submitted monthly. Both the return and payment should be monthly,” the official said.

Another official of the Rangpur Commissionerate also called for a return to the monthly system.

When asked why the NBR had not addressed the monitoring and collection issues before launching the new system, NBR Acting Chairman Ahsan Habib declined to comment.

BUSINESSES OPPOSE RETURN TO MONTHLY PAYMENTS

Businesses, meanwhile, have warned that restoring monthly VAT payments would run counter to the government's efforts to reduce compliance burdens and improve the ease of doing business.

Mohammed Amirul Haque, managing director of Premier Cement Mills, also criticised the NBR’s potential move to reverse the quarterly VAT payment system without adequate consultation with businesses.

“Their (NBR) main issue is consultation with businesses. If there is a problem, (they should) sit down with us. Ask us, ‘What is the modus operandi? How can we do it?’” he said.

He questioned the rationale for reverting to monthly payments after introducing the quarterly system in the name of ease of doing business.

“They introduced the quarterly system in the name of ease of doing business. Now, if they suddenly say everything has to be done every month, what is the justification? They did not consult us in the first place,” he said.

Amirul said compliant businesses should not be penalised because some non-compliant companies might misuse the system.

“If a non-compliant company takes advantage of the quarterly system to evade taxes, you cannot punish the compliant companies for that,” he said.

He also questioned the NBR's argument that quarterly payments create monitoring difficulties.

“If receiving government revenue every three months creates a monitoring problem, then why have you been holding advance income tax for years? Does that not create monitoring difficulties?” he said.

Some NBR officials have suggested a compromise: businesses could continue filing VAT returns every three months but would have to pay the VAT they collect into the government treasury every month.

Responding to a question from reporters on Tuesday, Finance Minister Amir Khosru Mahmud Chowdhury said the government would discuss the complications arising from the quarterly VAT return system and take a decision soon.

Currently, Bangladesh has more than 8 lakh businesses registered for VAT and holding Business Identification Numbers, according to the NBR.

Foreign investors accelerated their sell-off in the capital market in August, cutting holdings in several fundamental and large-cap stocks despite recent regulatory measures aimed at easing foreign investment.

According to Dhaka Stock Exchange data, City Bank saw the sharpest decline, with foreign ownership falling 1.72 percentage points to 8.26%, involving a Tk90 crore sell-off. BRAC Bank followed with a 0.57-point drop to 32.39% and a Tk80 crore exit.

Prime Bank's foreign holding fell 0.35 points to 5.36% (Tk12.30 crore), while Uttara Bank declined 0.17 points to 0.45% (Tk4 crore).

Foreign investors also reduced exposure to major blue-chip and multinational stocks. Grameenphone saw holdings fall 0.08 points to 0.17% (Tk26 crore), while Square Pharma declined 0.04 points to 14.33% (Tk7.5 crore).

Other sell-offs were recorded in Olympic Industries (Tk5 crore), BAT Bangladesh (Tk2.5 crore), Walton (Tk1.2 crore), LafargeHolcim Bangladesh (Tk1.20 crore), Summit Alliance Port (Tk0.71 crore), Shasha Denims (Tk0.55 crore), Envoy Textile (Tk0.47 crore), IDLC Finance (Tk0.40 crore) and Reckitt Benckiser (Tk0.15 crore).

Foreign buying remained muted, with small purchases in Acme Laboratories (Tk0.16 crore), LankaBangla Finance (Tk0.08 crore), Orion Pharma (Tk0.05 crore) and Ring Shine Textile.

The continued outflow comes despite recent policy measures to attract overseas capital. Bangladesh Bank removed the requirement for an auditor's certificate for every non-resident trade, allowing authorised dealer banks to process tax withholding directly into Non-Resident Investor Taka Accounts (NITA).

The Bangladesh Securities and Exchange Commission also relaxed dividend remittance deadlines for foreign shareholders, linking compliance to the issuance of Double Taxation Avoidance certificates. Meanwhile, MSCI will resume regular index reviews for Bangladesh from November 2026, ending its three-year "special treatment" following the 2022 floor price regime.

Market experts said foreign sentiment has nevertheless been weakened by recent regulatory decisions. They cited concerns over policy consistency following the removal of former Governor Ahsan H Mansur, as well as Bangladesh Bank's requirement for banks to have at least Tk2,000 crore in paid-up capital to declare dividends and its 4% cap on interest-rate spreads.

Analysts said such administrative interventions risk pushing the financial system towards a command-style economy, weakening market-based decision-making and encouraging global investors to shift funds elsewhere.

The government built 39 high-tech and software technology parks at a huge cost, but the facilities have failed to deliver the expected investment, jobs and technology growth, according to stakeholders.

They blamed a shortage of skilled workers, weak industry-academia links, poor maintenance, high operating costs and inadequate institutional support for the failure.

Speaking at a virtual discussion titled “Hi-Tech Parks: What is the Mission? What is the Reality?” yesterday, they said the government does not necessarily need to abandon the parks now. Instead, it should focus on making them useful, improving governance and providing the support businesses need.

From 2009 to 2023, the Awami League government built the parks, expecting the infrastructure to drive investment and create a technology boom.

“But results so far clearly show that the assumption was not the right one,” said M Rokonuzzaman, professor of Electrical & Computer Engineering at North South University.

He cited Taiwan, South Korea, Malaysia and Singapore as examples of countries where technology ecosystems grew through stronger links between industry, skills, research and government support.

Faiz Ahmad Taiyeb, former special assistant to the chief adviser, blamed the failure partly on establishing the parks in economically weak areas instead of integrating them with existing commercial hubs.

He said many of the parks were built without considering whether a viable economy already existed around them.

Faiz also questioned the credibility and effectiveness of the training ecosystem, saying the training facilities alongside the parks did not guarantee a steady supply of industry-ready workers.

Rafel Kabir, managing director of DNS Software Ltd, said the parks should have focused on producing core technologies, such as motherboards and chips fabrication.

At the programme organised by the Power and Participation Research Centre (PPRC), entrepreneurs from different parks also spoke about the obstacles they face.

Mohammad Mohidul Islam, managing director of software firm Ongsho at Jashore High-Tech Park, said around 40 companies are trying to stay afloat independently there without effective ecosystem support.

Jashore High-Tech Park was established in December 2017.

Mohidul said the authority treats them as tenants rather than entrepreneurs.

Md Ashafuddoza Shishir, co-founder and chief operating officer of Netro Systems Ltd and Telzen, said ventures from Rajshahi Hi-Tech Park have managed to develop global footprints.

But the direct benefits of operating in the park are limited, he said. “The tangible benefit for companies in Rajshahi park is confined to tax exemptions, as direct authority support for startups is largely absent.”

Farhana A Rahman, chairperson and CEO of UY Systems Ltd, said similar problems are visible at Kaliakoir Hi-Tech Park, where companies were offered plots without the wider services needed to build a functioning business ecosystem.

“We remain trapped in a loop of grandiose promises about high-tech parks, yet despite the building of so many facilities across the country, real progress on the ground is absent,” she said.

“The Kaliakor Hi-tech Park offered land plots but no supportive services. So, many later surrendered their allocations,” Farhana added.

Hossain Zillur Rahman, executive chairman of PPRC and moderator of the discussion, said Bangladesh does not need to abandon the high-tech park model altogether.

He said that the country should rebuild it on firmer foundations, with reliable utilities, accountable governance and support systems that treat companies as partners rather than tenants left to fend for themselves.

“Long-term success requires shifting focus from building physical real estate to cultivating soft infrastructure, skilled human capital, and industry-driven training,” he added.

Indonesian state-run company -- PT Pertamina -- is all set to bag the operation and management (O&M) contract of Bangladesh's maiden single-point mooring (SPM) for carrying fuel from vessels in outer anchorage to onshore storage tanks.

The state-run Bangladesh Petroleum Corporation (BPC) recently completed the evaluation for selecting the O&M contractor to initiate the operation of the country's much-needed oil carrying infrastructure two years after its installation, a senior official of the Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) told The Financial Express on Thursday.

A total of 11 companies had purchased tender documents to compete in the bidding, and three of them submitted bids in February this year to carry out the job.

After inking the deal, the Indonesian company will carry out the operation and management job for five years.

The Indonesian company has been selected as the O&M contractor following re-tendering.

Pertamina was the lone bidder in the initial tender, which was cancelled due to higher than expected price quotes.

During the BPC's previous tender, the Indonesian company had quoted $117 million, which was around 33 per cent above the BPC's budget of $88 million, resulting in the cancellation, said sources.

The SPM has already been kept idle for two years, and the BPC is counting extra money while using lighter vessels to carry fuel from mother vessels to tanks onshore as a consequence.

Chinese firm China Petroleum Pipeline Engineering Co Ltd (CPPEC) completed the construction of the SPM with a double-pipeline project and handed over the infrastructure to the BPC in August 2024.

The guarantee period to resolve faults in operations of the SPM, however, expired in February this year, much ahead of its commencement of commercial operation, it has been alleged.

The delay in starting operations of the SPM system is allegedly benefiting private operators, who are earning hefty profits by carrying fuel from outer anchorage to onshore storage through lighter vessels, at the expense of public money, industry insiders said.

Allegations are rife that a vested interest group, working in collusion with private sector beneficiaries, was playing a key role in delaying the SPM and its associated fuel pipelines and infrastructure.

The SPM system is used for piping petroleum from vessels far offshore and onshore storage tanks, thus slashing both time and cost of oil imports.

CPPEC built the SPM system after being selected as a contractor "unsolicitedly" under the currently repealed Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010.

The project cost escalated by 60 per cent to Tk 80 billion from the initial target of Tk 50 billion.

The installation of the SPM with the double pipeline project was implemented with Chinese concessional loans of around $554 million.

Of the total, China provided around $467.84 million as preferential buyers' credit and the remaining $82.5 million was available as soft loan.

The Exim Bank of China provided the money, to be repaid within 20 years at an interest rate of 2.0 per cent per annum with five years' grace period.

As part of the project, a 220-kilometre pipeline has been installed, with most of it laid in the waters of the Bay of Bengal.

Six storage tanks have also been constructed.

The tanks have a combined capacity of 240,000 tonnes of petroleum products, with 150,000 tonnes designated for crude oil and 90,000 tonnes for gas oil.

Once it is fully executed, the BPC will be able to unload petroleum products from a 100,000-deadweight tonnage tanker within 48 hours, which now takes 11 days.

No lighter vessels would be required to carry fuel from mother vessel, which is now moored at the outer quay, after implementation of the project.

The BPC is currently paying around $5.50 per tonne to lighterage or small vessels, owned mainly by the Bangladesh Shipping Corporation (BSC) to ferry petroleum to its onshore tanks from larger mother vessels.

Once operational, the SPM will save the cost of the BPC in unloading fuel significantly.

The government will be able to save around Tk 8.0 billion alone by reducing transport costs of petro-products from outer anchorage to onshore fuel tankers, market insiders said.

A fresh US$81.68-million capital is going to be funneled into Janata Bank's UAE operations to avert wind-down of its business following persistent capital-shortfall-triggered regulatory restrictions on its reserve accounts.

To this effect, the Financial Institutions Division (FID) Tuesday sent to the Finance Division a letter seeking approval for the government bailout for the state-owned bank's overseas outfit, sources said Wednesday.

Earlier, the UAE central bank had threatened to freeze Janata Bank's UAE operations and force a three-year wind-down of the business over its persistent capital shortfall, sources said.

The fund will be sourced from Janata Bank's head office in Dhaka and routed through its local office to the United Arab Emirates.

Contacted, an official of the Finance Division said, "We are working on the issue and necessary approval would be issued shortly."

Janata Bank's UAE operations have been running for 52 years since 1974 and currently it operates four branches and a chief executive office, making it the second-largest foreign bank in the UAE by branch count.

The bank serves roughly 70,000 depositors, 3,800 loan and advance customers, and close to one million remittance senders.

In 2021, the Central Bank of the UAE (CBUAE) raised the minimum capital requirement for foreign banks from AED 40 million to AED 400 million.

Janata Bank's UAE unit had paid-up capital of only AED 100 million, plus AED 83 million in retained earnings, well short of the new threshold, even though it had repatriated no profits in the intervening time while trying to build up capital.

Citing the persistent shortfall, the CBUAE imposed restrictions on debit transactions from Janata Bank's reserve accounts held at the central bank, effective July 8, 2026.

A week later, on July 15, the UAE regulator formally asked Janata Bank to begin a rollback to be completed within three years and appoint an administrator.

The CBUAE warned that failure to appoint an administrator and start wind-down proceedings by September 14, 2026 would lead to a permanent freeze of the bank's reserve accounts and the appointment of an administrator by the authority.

Bangladesh's ambassador to the UAE met the CBUAE assistant governor on August 18 to seek a resolution.

The ambassador recommended that the Finance Ministry pledge an AED 2.0-billion capital injection and that Janata Bank immediately meet the AED 100-million minimum capital requirements per branch.

The UAE operations' CEO informed the authorities on September 1 that the CBUAE would begin the winding-down process on September 8 and review progress on the administrator appointment and other compliance measures.

In a September-6th letter to the FID, Janata Bank Chairman Md Fazlur Rahman said the board, at its 900th meeting on September 5, 2026, had decided that the UAE operation was profitable and "should not be closed in national interest".

An official of Janata Bank who deals with the issue has said, "We hope to send capital to the UAE unit of state-owned Janata Bank by the deadline set by the CBUAE."

The closure of Janata Bank's UAE operations could disrupt banking services for around 70,000 depositors, one million remittance customers and 3,800 borrowers, while putting nearly Tk 9.0 billion in outstanding loans at risk of turning non-performing, according to an assessment by the bank's board.

The board's assessment, cited in a letter, warns that shutting down the UAE operations would also disrupt a major formal channel for remittances to Bangladesh.

Janata Bank currently channels an estimated Tk 80 billion to Tk 100 billion in remittances annually from the UAE, the assessment said.

"A closure could disrupt formal remittance flows and affect sales of the government's Wage Earners' Development Bond and dollar bonds.

"The UAE accounts for around 70 per cent of current CIP (remittance) recognitions," the assessment reads.

The board has warned that closure could damage the bank's international reputation, too, jeopardise correspondent banking relationships (RMA) and affect head-office trade-finance operations.

The three-year winding-down would also incur costs for asset disposal, customer liabilities, staff separation, contract termination and IT relocation, while the head office could have to cover administrator fees, salaries and legal expenses.

It could also affect the government's Probashi Card programme, for which Janata Bank has first-phase distribution responsibility in the Middle East.

Against this backdrop, the board approved transferring US$81.68 million (AED 300 million) from head-office assets into the UAE operations as capital, subject to government and central-bank approval.

It also approved a commitment letter to the CBUAE and a request to the Finance Ministry for the full AED 2.0-billion capital injection recommended by the Bangladesh ambassador.

The board further approved a request for ministry assistance to meet the capital shortfall, with all correspondence cleared for dispatch under the chairman's signature.

The FID's approval on Tuesday cleared the immediate AED300-million tranche, which officials say would meet the CBUAE's per-branch minimum capital requirement and avert the September-14th deadline for initiating formal rollback.

Capital market stakeholders have urged the government to allow listed companies to buy back their own shares and streamline merger and acquisition (M&A) processes through amendments to the Companies Act, 1994.

In a letter to the Ministry of Commerce, the DSE Brokers Association of Bangladesh (DBA), the platform of Dhaka Stock Exchange brokerage houses, called for specific provisions on share buybacks and M&A in the proposed third amendment to the law.

The DBA also urged the government to empower the Bangladesh Securities and Exchange Commission (BSEC) to formulate and enforce rules on the issues to ensure effective regulation and investor protection.

Currently, listed companies have no mechanism to repurchase their shares when prices fall sharply during periods of market volatility. The absence of a comprehensive M&A framework also forces companies to seek court approval, resulting in lengthy delays.

"Every country has laws governing share buybacks, but Bangladesh has none. As a result, many cash-rich companies cannot repurchase their shares even when prices fall. Consequently, there is no market support during a downturn," DBA President Saiful Islam told TBS.

He added that if this law is enacted, companies will be able to buy their own shares, providing crucial support during periods of market volatility.

Under current regulations, sponsors and directors can purchase shares when prices fall, but such purchases increase their personal stakes rather than directly benefiting the company, he said.

"Allowing companies to execute share buybacks would deliver direct value to the firm," Saiful said, adding that the DBA had urged the government to include buyback provisions in the Companies Act.

He also called for a dedicated M&A framework to reduce legal complexities and speed up transactions.

"M&As currently require court approvals, which is a time-consuming process. Having dedicated laws or regulations would enable faster mergers and acquisitions," he said.

DBA seeks greater BSEC oversight

In its letter to Commerce Secretary Md Ataur Rahman Khan, the DBA proposed allowing listed companies to conduct share buybacks, with BSEC empowered to formulate rules and oversee their implementation.

It also called for BSEC to be given authority to regulate mergers and acquisitions involving listed companies to reduce legal complexities and protect investors.

The association said empowering the capital market regulator to formulate and implement rules in these areas would ensure more effective oversight and better protection of investors and other stakeholders.

BSEC also seeks buyback provision

Separately, BSEC has called for allowing listed companies to buy back shares in the proposed amendment to the Companies Act.

The regulator also proposed modernising corporate reporting standards, requiring regulatory approval for mergers involving listed companies and extending the validity of financial statements used in prospectuses.

BSEC Executive Director Abul Kalam made the proposals at a views-exchange meeting on the draft Companies Act amendment at the FBCCI Board Room in the capital on Monday.

He said targeted revisions were needed to align the law with modern business practices, noting that several BSEC recommendations submitted on 18 December 2025 had been omitted from the current draft.

Referring to Section 58 of the existing law, which restricts companies from purchasing their own shares, Kalam urged policymakers to allow listed entities to conduct buybacks under specific conditions to improve capital management and protect shareholder interests.

On mergers, acquisitions, demergers and restructuring under Sections 228 and 229, he proposed requiring BSEC involvement when a listed company merges with an unlisted entity to protect general investors, citing similar regulatory arrangements in India.

Benchmark Brent crude oil futures rose past $100 a barrel on Wednesday, hitting a more than six-week high and breaching the symbolic threshold for the first time since July 24 as intensifying conflict in the Middle East heightened concerns about oil flows from the region.

Brent crude futures were up $2.01, or 2.05 percent, at $99.93 a barrel by 0802 GMT, after earlier touching $100.19, while US West Texas Intermediate crude was up $1.49, or 1.60 percent, at $94.52 a barrel.
Brent crude prices have risen by a quarter since early last month as hopes fade for a permanent resolution to the six-month-old US-Iran conflict.Since the Iran war began on February 28, Brent has surged as high as $126.41 a barrel, a peak reached on April 30.

This week, attacks by Iran-backed Houthis on Saudi energy facilities set oil installations ablaze, threatening a significant expansion of the conflict.

The attacks also threaten crude shipments via the Red Sea, which has been a key alternative route to the crucial Strait of Hormuz, where oil flows have been severely curtailed since the February 28 start of the Iran war.

Market participants appear to be pricing in a more prolonged conflict in the Middle East as well as the risk that the latest escalation in military strikes disrupts oil flows from the Middle East, said Hamad Hussain, senior climate and commodities economist at Capital Economics.

The key risk is whether the recent attacks on oil tankers lead to fewer ship-to-ship transfers taking place in the Gulf of Oman, which have so far played a key role in providing oil to global markets and keeping a lid on prices.

A growing number of banks, including Goldman Sachs, Bank of America and HSBC, have raised their crude price forecasts in recent days.

In the week before a resumption in fighting on August 30, roughly 8 million to 9 million bpd had flowed through Hormuz, double the previous week's volume, according to Rystad Energy's Chief Economist Claudio Galimberti, although more recently it had fallen below 2 million bpd.

I think the market is trying to treat this rise in energy prices as a one-off. It's not. This is structural. It's not going away, and it's part of what I would argue as a security premium. And it's only going to get bigger, said Jeffrey Currie, co-chairman at Abaxx Markets.

While non-OPEC oil producers including the United States, Canada and Guyana have ramped up output, the International Energy Agency said last month it expected global oil supply would fall this year by 4.3 million bpd, or about 4 percent.

US President Trump has announced new import bans and 50% tariffs on some Canadian goods as tensions between the two countries intensify. This comes a day after Ottawa's retaliatory tariffs on US products took effect.Canadian dairy products, motorcycles and alcoholic beverages face import bans in the United States, while other goods from across the border will be hit with 50% tariffs, the White House said Tuesday, as President Donald Trump escalates a trade war with Ottawa.
The import ban is scheduled to take effect on September 29.

Trump also ordered a 50% tariff on additional Canadian goods, including mattresses, motorboats and golf carts, starting September 15.The latest moves came after Canada imposed retaliatory tariffs of up to 50% on about $20 billion (€17.2 billion) of US goods on Monday, following Washington's decision last month to levy 50% tariffs on selected Canadian imports.
Why is Trump imposing an import ban?

The White House said the alcohol ban was partly in response to provincial boycotts of US alcohol. Canadian provinces have removed many US wines and spirits from store shelves amid a widespread boycott of American goods, a move Trump called "discriminatory."

"President Trump is doing this to make sure, again, that we keep a level playing field, deter retaliation, and of course protect American production," a senior administration official, speaking on condition of anonymity, told reporters on a call.

Trump also directed the US General Services Administration to exclude Canadian products from its long-term government procurement contracts unless Ottawa restores what he called "full and fair reciprocity" for American farmers and companies.

On Monday, Trump threatened to block Canadian aircraft maker Bombardier from selling planes in the US unless it manufactures them in the United States.
What did Canadian Prime Minister Carney say?

Nearly 68% of Canadian exports headed to the US this year, with about 80% of those shipments entering duty-free under the United States-Mexico-Canada Agreement (USMCA) exemptions, data showed.

However, the latest escalation also cast a shadow on the future of the three-nation trade pact.

Canadian Prime Minister Mark Carney said his country would accelerate efforts to reduce its dependence on the US.

"It's about ensuring that no country can hold us hostage. And that we can live how we want to live," Carney said on Tuesday.

Aside from tariffs, Canadians were also irked by Trump's repeated reference to their country as the 51st US state and an order renaming of Lake Ontario to Lake America.
Trump pushes Canada toward EU

Trump wielding tariffs as a tool to force smaller partners to agree to lower tariffs in return for market access, investment pledges or alignment with US policy has other governments watching to see how Canada's standing up to Trump plays out.

Recent developments have pushed Ottawa to explore a deeper relationship with the European Union.

Next week, Carney is due in Strasbourg, France, and scheduled address the European Parliament.