It is very concerning that, despite having sufficient deposits in their bank accounts, depositors cannot withdraw funds because of liquidity crises and the inability of many banks and NBFIs to honour cheques or requests. Serious patients could not receive medical treatment, while emergency family needs, including higher education, could not be met. A few banks and NBFIs are still running well, but they can be counted on one hand. The issue came to the surface after August 5 of 2024, when owners fled or went into hiding, boards were restructured, top management changed and, in some cases, the central bank appointed administrators.

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Political will to ensure good governance is critical. Putting the right people in the right places is also important. Undue interference by the government and regulators should be avoided.

The question is why this happened when the central bank is responsible for monitoring and regulating the banking and financial systems, alongside the Ministry of Finance. The position on bad loans was kept suppressed, with the central bank exercising undue power over the quantum of provisions for bad and doubtful debts. It introduced tripartite meetings after statutory audits and dictated matters to external auditors, jeopardising their independence. Our experience over the past decade shows this weak governance. Tripartite meetings should only resolve disputes between clients and banks. In Bangladesh, this mechanism has been thoroughly misused.

Governance failures are apparently the key reason for this situation. Laws, rules and regulations were not adhered to; policies were not followed as they should have been; directors, especially chairmen, did not play their role as custodians, and independent directors failed to meet the expectations of depositors. Internal audit teams also failed to play their due role. Undue board influence, lack of professionalism and weak ethical standards also contributed. The failures of external auditors and senior management cannot be ignored.

My experience as a nominated director of a state-owned bank for about two years and an NBFI for more than five years was rewarding. The NBFI managed its asset quality very well. Even as an auditor for an NBFI, I had to discontinue my audit after one year of a three-year rotation because of a disagreement over the quantum of provisions for bad and doubtful debts. Neither the central bank nor the Ministry of Finance asked me about my discontinuation.

In the absence of a strong capital market, the main source of business finance is funding from banks and NBFIs. When banks and NBFIs are weak, and in some cases insolvent, business, trade, and industrialisation have no way but to suffer, while economic growth is severely affected.

Institutions are built over many years. When they fail to perform and financial systems break down, restoring them is difficult. Bangladesh is experiencing such a phase.

Political will to ensure good governance is critical. Putting the right people in the right places is also important. Undue interference by the government and regulators should be avoided. In cases of gross negligence or motivated decisions, wrongdoers should be subject to independent investigation by credible agencies. If proved guilty, they should be held accountable. Bad practices must not be repeated.

Ultimately, the situation must be addressed with due attention to timelines. Delays can be costly, and Bangladesh cannot afford them. Based on media reports, it is also alarming that the economy is likely to turn around only after four years. Although there is no visible basis for this statement, it is nevertheless hopeful that at least a ray of hope can be seen. Let us hope for the best.

The Bangladesh Bank (BB) has increased the annual foreign exchange travel entitlement for Bangladeshi nationals to $18,000 from $12,000, aiming to facilitate genuine travel-related foreign exchange requirements.

In a circular yesterday, the BB allowed authorised dealers (ADs) -- commercial banks permitted to handle foreign exchange transactions -- to release foreign exchange of up to $18,000, or the equivalent amount, per calendar year to an adult Bangladeshi national residing in the country for travel abroad.

The decision has been taken with a view to facilitating genuine travel-related foreign exchange requirements of Bangladeshi nationals and considering the evolving needs of international travel, said the central bank. The entitlement for minors below 12 years of age will remain at 50 percent of the amount admissible for adults.

The BB has also retained the existing restriction on the release of foreign exchange in the form of US dollar notes. Cash dollar releases will remain capped at $5,000 per person, within the applicable annual travel entitlement.

The move is expected to provide greater flexibility to Bangladeshi travellers in meeting legitimate expenses related to overseas travel, including tourism, family visits and other permissible purposes, said a senior BB official.

The trustee board of Vanguard AML Rupali Bank Balanced Fund has approved a proposal to voluntarily convert the closed-end mutual fund into an open-end scheme, potentially improving liquidity and providing unitholders with a more flexible exit option.

According to an official disclosure issued by the Investment Corporation of Bangladesh (ICB), the fund's trustee approved the conversion proposal submitted by its asset manager, Vanguard Asset Management Ltd (VAML), in line with the Bangladesh Securities and Exchange Commission (Mutual Fund) Rules, 2025.

The fund will seek unitholders' approval for the proposed conversion at a Special General Meeting (SGM) scheduled for 26 October 2026 at 11:00am at RAOWA Convention Hall in Mohakhali, Dhaka.

Unitholders will vote at the meeting on whether to proceed with the conversion of the closed-end fund into an open-end scheme.

The trustee has set 4 October 2026 as the record date, on which trading of the fund's units on the stock exchanges will be suspended until further notice to determine the list of eligible voters.

The conversion initiative comes at a time when the fund has shown signs of a financial turnaround. After grappling with net losses since 2022, the fund reported a significant recovery in the first half of 2026.

For the January–June period, the earnings per unit (EPU) stood at Tk1.19, a sharp reversal from a loss of Tk0.57 in the same period last year. The recovery was particularly strong in the second quarter (April–June), which contributed Tk0.91 to the EPU.

Despite the earnings rebound, the fund's cash flow remains under pressure, with a negative net operating cash flow per unit of Tk0.68 for the first half of the year.

As of 30 June 2026, the Net Asset Value (NAV) per unit at market price was Tk9.57, while at cost price, it stood at Tk10.72. Listed on the Dhaka Stock Exchange in 2016, failing to declare any dividends since 2024.

Market observers believe the shift to an open-end structure will be a major relief for investors, as closed-end funds in Bangladesh have historically traded at steep discounts to their NAV. In the last trading session on 3 September, the fund's unit price closed 1.25% higher at Tk8.10 on the Dhaka bourse.

Bangladesh retained the second position in garment exports to the US in the January-July period as China’s apparel shipments to the American market recorded their steepest decline.

Bangladesh first overtook China in January-February as the Trump administration imposed higher tariffs on Chinese garment imports.
It retained the position in January-July despite a 6.50 percent year-on-year decline in garment exports to the US to $4.66 billion, mainly due to weaker demand for locally made apparel, according to data from the Office of Textiles and Apparel (OTEXA), the US provider of global apparel import data.In July alone, Bangladesh’s garment exports to the US fell 10.73 percent.

Overall, US apparel imports declined 8.65 percent year-on-year to $41.83 billion in January-July.

China’s apparel shipments to the US fell 34.21 percent to $4.55 billion, while India’s declined 25.77 percent to $2.45 billion and Pakistan’s 5.60 percent to $1.26 billion.

Vietnam’s shipments fell 1.03 percent to $9.36 billion, while Indonesia and Cambodia posted growth of 2.76 percent and 10.48 percent to $2.74 billion and $2.62 billion, respectively.

Vietnam remained the largest apparel exporter to the US, followed by Bangladesh and China.

Bangladesh is in a relatively better position than some other apparel-exporting countries in terms of tariffs, which is helping boost shipments to the US market, said Shovon Islam, managing director of Sparrow Group.

“Although exports are in a good position, prices declined in January-July as local exporters had to bear part of the reciprocal tariff,” he said.

If the energy crisis is resolved, Bangladesh could perform even better in the US market, Shovon added.

“China is losing market share, and Bangladesh may be able to perform better in the future. In fact, Vietnam is taking more of China’s market in the US, while Bangladesh is taking a smaller share,” said Anwar Ul Alam Chowdhury Parvez, chairman and managing director of Evince Group, which ships a significant portion of its garments to the US.

However, Bangladesh’s ability to retain the position could be challenged by the ongoing energy crisis, he said.

“We are concerned whether Bangladesh can retain this position in the US market as the energy crisis persists in industrial units. Buyers are also well aware of the energy situation,” Anwar said. If the country can ensure adequate energy supplies, Bangladesh may sustain the positive trend, he added.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Bangladesh could benefit further as China loses market share in the US, but sustaining growth will require lower production costs and reliable gas and power supplies.

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the outlook for garment exports to the US was positive as work orders were rebounding following the finalisation of effective tariff rates for individual countries by the US government.

However, the industry’s focus should not be on export volume alone, but also on how much value local manufacturers retain, he said.

“Obtaining letters of credit from international buyers should not be the main target, as many exporters cannot make even a minimum profit because of high import costs for raw materials such as fabrics and chemicals,” Mahmud said.

Many exporters are also shipping goods below production cost in the hope of making profits later, he said. The BGMEA wants the industry to achieve a retention value of $20 billion if Bangladesh exports $50 billion worth of garments a year, Mahmud added.

The US is Bangladesh’s single largest garment export destination.
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In February, Bangladesh and the US signed the Agreement on Reciprocal Trade (ART), which includes a textile clause. Under the clause, garments made in Bangladesh using US-sourced cotton and man-made fibres could qualify for duty-free access to the US market.

The provision could further strengthen Bangladesh’s competitiveness in the US market if implemented properly.

The country's prolonged gas crisis has pushed the ceramics industry to the brink, forcing some factories to shut production lines while others operate at less than half their capacity.

Industry leaders said more than 30 ceramics, tiles and sanitaryware factories in major industrial belts including Gazipur, Narayanganj, Savar, Dhamrai, Narsingdi, Mymensingh, and Habiganj are facing severe gas shortages.

They said ceramics factories require around 15 pounds per square inch (PSI), but pressure has frequently dropped to 3-4 PSI and, at times, fallen to zero for most of the past month, forcing many factories to operate at only 34-40% capacity.

Overall production in the ceramics sector has fallen to around 35%. The crisis is also driving up production costs, reducing exports, disrupting domestic supplies and prompting foreign buyers to cancel or cut orders.

"If the situation doesn't improve quickly, factories will fall into a severe financial crisis. Imports may also rise as domestic production declines," said Irfan Uddin, secretary of the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA).

Gas accounts for around 12% of ceramic production costs, according to the BCMEA. Kilns require uninterrupted gas supply for about 24 hours as sudden pressure drops can damage or destroy products inside them.

Once a kiln is shut down, it takes another 48-72 hours to restart after gas pressure returns to normal, making intermittent supply particularly damaging for manufacturers.

The disruption is therefore making it increasingly difficult for factories to maintain production, fulfil export orders and ensure regular supplies to the domestic market.

Artisan Ceramics, which exports tableware to Europe and other international markets, has seen its production fall by around 35% because of the gas crisis.

The company's Gazipur factory has a daily production capacity of seven tonnes. It has taken a Palli Bidyut electricity connection as an alternative source of energy to keep production running, but frequent load-shedding is creating additional problems.

"The gas and electricity crisis has increased our production costs by 35-40%," said Mamunur Rashid, chief executive officer of Artisan Ceramics.

"Production has been disrupted due to the gas and electricity crisis, causing exports to fall by around 35-40%. We have also had to reduce the orders we accept. Buyers are becoming frustrated. We are worried whether they will give us orders next year," he said.

Factories shut, workers sent on leave

Great Wall Ceramic Industries' tile factory in Sreepur, Gazipur, has been shut for a week, cutting production by around 40,000 square metres a day. Most workers are sent on leave.

Its sanitaryware factory in Habiganj normally produces about 100,000 toilets, basins and other sanitary products a month. However, its production has fallen by around 35%.

An official of Great Wall said the company normally keeps a tile stock equivalent to one to one-and-a-half months' sales.

"Production has been disrupted for almost a month due to the gas crisis. As a result, we cannot meet market demand, and sales have already declined. If the situation does not improve within the next one or two weeks, sales could come to a complete halt," he said.

Leading ceramics manufacturer RAK Ceramics was forced to shut all four production units for eight consecutive days due to the gas crisis. One unit resumed operations last Friday, leaving the company running at roughly 25% of capacity.

RAK Ceramics Chief Executive Officer Mohammad Khorshed Alam said the company had yet to calculate the losses caused by the shutdown.

The disruption has also hit Mir Ceramics in Sreepur, Gazipur. Three of its four production units have remained shut for 17 days, cutting daily tile output from a capacity of around 300,000 square feet to just 50,000 square feet. Most of the factory's 800 workers are on leave. An official of Mir Ceramics said gas pressure was sufficient to operate only one unit.

Meghna Group of Industries' ceramics factory in Ashariarchar, Sonargaon, Narayanganj, is also struggling with inadequate gas supply.

AKM Ziaul Islam, chief operating officer of Meghna Ceramics Industries, said the factory has a daily tile production capacity of 51,000 square metres, but gas shortages have disrupted output and prevented the company from meeting market demand.

Domestic market at risk

According to BCMEA data, Bangladesh has 76 ceramic factories producing tableware, tiles, sanitaryware and ceramic bricks, including 31 tile factories.

The domestic tile market was worth Tk5,854 crore in FY25, with local companies holding an 82% share. The overall ceramics market stood at Tk8,250 crore in 2024-25 fiscal year.

The sector has attracted around Tk20,000 crore in investment and employs five lakh people. Ceramic factories are located in Gazipur, Mymensingh, Narayanganj, Habiganj and Bhola.

Industry insiders said almost all factories in the affected areas are facing gas shortages, except seven to eight in Bhola and Habiganj with comparatively better supplies.

The affected industrial clusters include Savar and Dhamrai in Dhaka; Rupganj and Meghnaghat in Narayanganj; Kashimpur, Bhabanipur, Bhawal Mirzapur, Sreepur and Mawna in Gazipur; Panchdona in Narsingdi; Bhaluka and Trishal in Mymensingh; and Madhabpur and Bahubal in Habiganj.

Industry executives said most affected factories are operating at only 20-30% capacity.

BCMEA President Moinul Islam said factories outside Bhola and Habiganj were unable to operate at full capacity because of gas shortages.

He said Bangladesh Chamber of Industries (BCI) representatives recently met Industry and Commerce Minister Khandaker Abdul Muktadir to discuss the gas crisis.

"For an industry that has invested around Tk20,000 crore and employs nearly half a million people, manufacturers now fear that a prolonged gas crisis could turn a temporary production disruption into a deeper industrial and employment crisis," he added.

Bangladesh received US$6.046 billion in workers' remittances during July 1 to September 2 of the current fiscal year (FY2026-27), registering an 18.6 per cent year-on-year growth compared to US$5.098 billion during the corresponding period of FY2025-26.

According to Bangladesh Bank data, the country received US$220 million in remittances during September 1-2, 2026, against US$198 million received during the same period last year, showing an 11.4 per cent year-on-year growth.

On September 2 alone, expatriate Bangladeshis sent home US$108 million through formal banking channels.

The sustained growth in remittance inflows is expected to help strengthen the country's foreign exchange reserves and support external-sector stability.

The country's premier bourse ended a volatile week with marginal gains as a mid-week surge in bargain hunting successfully offset heavy selling pressure seen in the early sessions.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) inched up by 6 points, or 0.11%, to settle the week at 5,662 points.

Despite the fragile recovery, the market witnessed a "tug-of-war" between opportunistic buyers and cautious sellers. The blue-chip DS30 index followed the broad index's lead, gaining 5 points to close at 2,140. However, the DSE SME Index faced a setback, dropping 26 points to settle at 1,046.

Market participation saw a slight improvement, with the daily average turnover rising by 6% to stand at Tk608 crore.

EBL Securities, in its weekly market review, said the market came under heavy selling pressure at the beginning of the week amid concerns that persistent domestic headwinds could hurt corporate earnings. The absence of fresh positive catalysts also pushed the DSEX below the 5,600 mark after around two months.

The market, however, received some respite in the middle of the week as bargain hunters accumulated beaten-down shares following favourable remarks from regulatory authorities regarding long-term structural reforms. The recovery attempt lost momentum in the final session as weak conviction over the market's direction triggered quick profit-taking.

Sheltech Brokerage Limited said market performance was largely shaped by the competing forces of buying interest and selling pressure. Optimism surrounding BSEC Chairman Masud Khan's recently proposed market-development initiatives supported buying, while concerns over the energy-supply crisis kept investors cautious.

The brokerage said renewed buying emerged after the BSEC chairman announced several market-development initiatives, but persistent selling pressure kept the market volatile. Going forward, progress on the proposed reforms, developments in the energy-supply situation, and upcoming earnings and dividend announcements from June-closing companies are likely to influence market direction.

Textile stocks dominated trading, accounting for 33.6% of total turnover, followed by general insurance at 12% and pharmaceuticals at 11.3%.

Sector performance was mixed. General insurance led the gainers with a 2.7% rise, followed by travel and jute, each gaining 1.4%. Services was the biggest loser, declining 2.1%.

Beximco Pharma, Malek Spinning, Paramount Textile, Beacon Pharma and Saiham Cotton were among the major stocks supporting the DSEX during the week.

Saiham Textile, Sharp Industries, Malek Spinning, Saiham Cotton and IPDC Finance recorded the highest average turnover.

Saiham Cotton led weekly gainers, rising 15.9%, followed by Nahee Aluminum at 11.1% and Bangladesh National Insurance at 10.5%. Safko Spinning gained 10.5%, while Nitol Insurance advanced 9.6%.

On the other hand, Sharp Industries suffered the steepest decline, falling 20.6%. Lovello Ice-cream dropped 15.7%, Apex Spinning declined 13.6%, Reliance Insurance Mutual Fund One fell 11.5%, and Tung Hai Knitting lost 10.6%.

After the IPO market has remained dry for a long time, the securities regulator is optimistic that new primary issues will be floated in the next few months.

Many of the aspiring issuers have already signed agreements with issue managers and are working to prepare financial statements. They include BRB Cables, Solar Equity Venture, Confidence Infrastructure, Super Star Electrical Accessories, and Shoeniverse Footwear.

The companies are yet to fix the amounts to be raised through IPOs or debt securities.

Apart from them, City Group has also signed an agreement with LankaBangla Investments to raise around Tk 15 billion from the capital market. The conglomerate is looking to raise funds through IPO, private equity, preference shares, corporate bonds, Sukuk and/or other permissible capital market vehicles.

"We hope a good number of companies will be listed in the next few months," said Masud Khan, chairman of the Bangladesh Securities and Exchange Commission (BSEC).

Apart from easing the public issue rules, the regulator is set to introduce a hybrid mechanism allowing direct listing and IPO for the same companies.

Talking to the FE, several issue managers said companies were approaching them to learn about the process of going public.

Among the issue managers, ICB Capital Management has signed an agreement with two companies, including BRB Cables, and is in talks with another five companies interested in issuing primary shares.

"The [market] scenario will change following the listing of some good companies," said Mazeda Khatun, managing director of ICB Capital.

Asked about the trend, a senior official of the Dhaka Stock Exchange (DSE) said many companies had already visited the bourse to discuss listing.

Sources at the DSE said seven companies intend to float IPOs, while another eight have shown interest in raising funds through bonds.

"Some of them have also shared bitter experiences with the previous long-standing process of getting clearance from the regulator to float shares," said an official who preferred not to be named.

The Public Issue Rules 2025 reduced the period for approving or rejecting an IPO proposal to within 55 days.

The factors prompting issuer companies to go public include the pressure of bank loan repayment and the reduced scope of receiving fresh loans from banks. That is why highly leveraged companies are moving towards raising funds from the capital market.

Besides the shorter IPO approval period, the scope for fair valuation of shares and further amendments to the public issue rules under consideration have also encouraged many companies to raise capital from the market.

The securities regulator is working on further amendments to the public issue rules.

Asked about this, Iftekhar Alam, chief executive officer of LankaBangla Investments, said that apart from signing an agreement with Shoeniverse Footwear, the firm was in talks with five other companies interested in going public.

Confidence Infrastructure plans to raise Tk 3 billion through an IPO to finance electric vehicle (EV) battery production, business expansion, debt repayment and investments in new sectors, including food.

The company has appointed UCB Investment Limited as issue manager for the proposed IPO.

Multinational companies operating in Bangladesh must be brought under the capital market, Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan said today (4 September).

The commission will first encourage such companies to voluntarily list on the stock market, but if they refuse, the BSEC has the legal authority to take steps in the public interest, he said while inaugurating a two-day workshop titled "Capital Market Products and Rules" for members of the Capital Market Journalists Forum (CMJF) at Subarna Gram in Narayanganj.

The workshop, organised by the BSEC, is being held on 4 and 5 September.

"There are many large domestic and multinational companies in Bangladesh. Unless these good companies are brought to the capital market quickly, the market cannot develop as expected," Masud said.

He said the BSEC would work to bring several large and flagship companies to the capital market within the next six months to one year.

"Come voluntarily. But if you do not come voluntarily, we also have the weapon to make it happen," he said.

The BSEC chairman said securities law allows the commission to direct certain companies to list in the public interest. A legal definition of "Public Interest Company (PIC)" will also be introduced for this purpose.

Calling on large companies to enter the capital market, Masud said listing gives a company a stronger corporate identity and establishes a market value for it.

That market value can then be used for acquisitions or mergers, while shareholders who want to exit a business can sell their shares more easily, he said.

He also pointed to succession problems in family-owned businesses, saying disputes often emerge among owners when businesses pass from one generation to another, sometimes leading to fragmentation.

Listing can provide an exit option for shareholders who do not want to remain involved in the business, he added.

The BSEC chairman also announced plans to introduce direct listing and a hybrid system to bring large companies to the market more quickly.

He said the existing IPO process takes too long. Under the proposed hybrid system, a company would raise new capital through one portion while directly listing existing shares through another.

Masud said the BSEC plans to introduce "extended audits" to simplify the IPO process.

He said auditors should verify not only whether a company's financial statements are accurate, but also whether its land, machinery, inventory, receivables and supplier information reflect the actual situation.

Under the proposed system, auditors would certify the authenticity of the assets and financial information submitted by IPO applicants. This would help the Dhaka Stock Exchange (DSE) complete its IPO scrutiny process more quickly, he said.

Noting that Bangladesh's capital market remains largely dependent on retail investors, Masud said institutional investment must be increased to make the market sustainable.

The BSEC plans to expand opportunities for provident funds and other funds to invest in shares as well as corporate bonds, he said.

In developed markets, pension funds and insurance companies are major investors, he said, adding that Bangladesh also needs to bring such institutional investors into the market.

Referring to the removal of the floor price after he took office, Masud said the move had prompted global index provider MSCI to move towards withdrawing special measures imposed on Bangladesh's market.

MSCI has said it will resume regular reviews of Bangladesh's index and implementation of corporate events from November 2026, he said.

The BSEC chairman also outlined plans to give the DSE greater powers, modernise market surveillance and introduce an artificial intelligence-based surveillance system.

On the development of the corporate bond market, Masud said the commission was working to reduce main-board listing fees. This would encourage banks and other institutions to list on the main board and gradually expand the country's bond market, he added.

The large-scale manufacturing rebounded sharply with a 14.5-percent expansion in June, the final month of the fiscal year 2026, according to official statistics.
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It provides a stronger-than-expected end to a volatile 2025-26 fiscal year marked by repeated contractions amid economic uncertainty.

The June spike in the Index of Industrial Production (IIP) of large-scale manufacturing suggests that the country's industrial sector may be regaining momentum after a prolonged period of weakness.

Large-scale manufacturing accounts for more than 11 per cent of gross domestic product or GDP of the country, making its performance an important indicator of broader economic activity.

The rebound, however, was not broad-based.

Much of the June growth came from the clothing industry, which carries a dominant 61-percent weight in the manufacturing index.

The textile sector, the second-largest component with an 11 -percent weight, remained almost stagnant during the month.

The concentration of growth in garments raises questions about the strength of the wider industrial recovery.

While the performance of the clothing industry provided a substantial liftoff to the overall index, several other manufacturing segments continued to struggle, suggesting that the recovery remains uneven.

"The manufacturing sector had a difficult fiscal year," says Dr. Zahid Hussain, an independent economist.

He goes on to say that industrial activity contracted in several months amid political uncertainty, the national elections and the fallout from geopolitical tensions, including the crisis in the Middle East centred on Iran.

Some industries are benefiting from stronger demand and export opportunities, while others continue to face subdued consumption, high production costs, financing constraints or weak investment.

The sharp rise in June, therefore, needs to be viewed in the context of the sector's performance over the entire fiscal year rather than as evidence of a fully established recovery.

The sector recorded negative growth in October, November, December, February, March and May. January and another month recorded virtually flat performance.

As a result, the strong June expansion came after months in which manufacturers faced weak demand, uncertainty over investment and disruptions to business activity.

Against this backdrop, the June increase of 14.5 per cent is significant.

It marks a sharp turnaround from the contractionary trend seen during much of the fiscal year and could indicate that manufacturers are responding to improving business conditions and stronger external demand, particularly for export-oriented products.

Among the 23 major manufacturing groups, a number of industries recorded noteworthy performances during June. The goodies include food products, leather, chemicals, pharmaceuticals, rubber and plastics, basic metals, electrical equipment, machinery, motor vehicles, other transport equipment, furniture and other manufacturing.

The performance of these industries points to some degree of breadth in the June recovery, although the dominant contribution from garments means the overall picture remains heavily influenced by one sector.

Several industries, meanwhile, continued to perform poorly. Among the baddies named are beverages, tobacco, wood products, paper and paper products, fabricated metal products, computers and electronics, and printing.

The Bangladesh Securities and Exchange Commission (BSEC) has started discussions with major local and foreign companies and business groups to bring fundamentally strong and reputed companies to the capital market through direct listing.

As part of the initiative, the commission held a meeting with representatives of leading companies and business groups at its Agargaon office today (3 September) to discuss ways to bring such companies to the market through direct listing.

Representatives of Unilever, Nestlé Bangladesh, MetLife, bKash, Banglalink, KAFCO, Incepta Pharmaceuticals, Nagad, Meghna Group, PRAN-RFL, DBL Group, Abul Khair Group, ACI, Walton, Akij Resources and Confidence Group, among others, attended the meeting.

BSEC Chairman Masud Khan said the number of strong companies in Bangladesh's capital market remains inadequate. The commission therefore wants to bring reputed flagship companies to the market through direct listing to deepen and broaden the capital market.

He said greater participation by large and quality companies would help attract both domestic and foreign investment while creating more quality investment opportunities.

The BSEC has already approved the draft "Bangladesh Securities and Exchange Commission (Direct Listing of Securities on the Stock Exchange) Rules, 2026". The commission approved the draft at its 1,027th meeting on 1 September.

Under the proposed rules, eligible companies will be able to list directly on the stock exchanges by offloading shares held by existing shareholders, without issuing new shares through an initial public offering (IPO).

At today's meeting, the BSEC presented the eligibility criteria for direct listing, application and listing requirements, and the proposed price discovery process.

Representatives of companies, merchant banks, issue managers, stock exchanges and other stakeholders shared their views and recommendations on various aspects of the proposed rules. Discussions focused on bringing capable and reputable companies to the market while ensuring investor protection and maintaining market discipline.

Masud said listing on the capital market enhances a company's reputation and acceptability. It can also improve share liquidity and create scope for better valuation. Existing shareholders get an opportunity to liquidate their holdings, while the company can eventually raise capital from the market to finance future expansion.

Alongside direct listing, the BSEC is also considering a hybrid approach under which large companies could offload shares held by existing shareholders while issuing new shares to raise fresh capital.

Representatives of several companies expressed interest in entering the capital market through both direct listing and the hybrid approach, which combines the offloading of existing shares with the issuance of new shares.

The BSEC's initiative aims to bring large, fundamentally strong companies that have remained outside the capital market for years under the listing framework. The commission believes greater participation by such companies will increase the number of quality listed firms, deepen and broaden the market, and create more investment opportunities.

World ​food prices rose in August to their highest since late 2022, as adverse weather and ‌war disruption in the Black Sea heightened concern over supply of staples, the United Nations’ Food and Agriculture Organization said on Friday.

Extreme heat and drought in Europe, the threat of a severe El Nino weather pattern and trade upheaval caused by the Ukraine ​and Iran wars have unsettled agricultural markets, pushing grain prices to three-year highs and sugar to a one-year ​peak.

The FAO Food Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 133.3 points in August, up from July’s revised reading of 130.8.

That was the highest ​score since November 2022, though nearly 17 percent below a record peak from March 2022, after Russia’s full-scale invasion of ​Ukraine.

“August’s increase in global food prices is a warning that the risk premium is returning to food markets: climate shocks, geopolitical tensions and disrupted trade logistics are converging to tighten supply expectations,” FAO Chief Economist Maximo Torero said in a statement.

The FAO’s ​price benchmarks for cereals, vegetable oils, sugar, meat and dairy all rose in August.

The extreme weather in Europe ​affected prospects for the maize (corn) and sugar beet harvests as well as livestock output, while the anticipated El Nino phenomenon ‌fuelled concerns for palm oil and sugar output in Asia, it said.

Escalating attacks in the Black Sea have curtailed grain shipments from Russia and Ukraine in their 4-1/2-year-old war, while the US-Iran conflict was straining flows of fertiliser for crops.

Among food categories, FAO’s cereals price index rose 2.2 percent month-on-month to its highest since May 2024, and the vegetable oil index edged up ​0.6 percent to its highest since June 2022.

The agency’s sugar benchmark jumped 11.9 percent to its highest since June 2025, with lower production in Brazil’s crucial center-south region adding to weather concerns in Europe and Asia.

In a separate report, the agency cut its 2026 global cereal production forecast by 3.4 million metric tons from a previous estimate in July to 2.980 billion tons, now 2.0 percent below 2025 in the largest annual decline since 2018.

Projected output would still be the second-largest on record, however.

Forecast world cereal stocks at the close of 2026/2027 were revised down 1.1 percent to 947.2 million tons, now only marginally above the previous season.

A reduced estimate of coarse grain stocks outweighed an upward revision for wheat that reflected an anticipated build-up in Russian and Ukrainian stocks due to shipping disruption, the FAO said.

Factories producing garments, food, ceramics and pharmaceuticals are cutting production, changing work schedules and turning to alternative energy sources as the ongoing gas and power shortages make it harder and more expensive to keep plants running.

Manufacturers say switching to alternatives raises production costs, hurts margins and puts export deadlines at risk. In most cases, they also cannot pass the extra costs on to foreign buyers or local customers.Asif Ibrahim, vice chairman of Newage Group, which makes knitwear and woven garments for international brands, said the company has been changing its production schedule according to electricity availability.

“We adjust our production schedule according to the power situation. We also try to cut unnecessary use of electricity and get more out of the machines when they are running,” he said.

The crisis has been dragging on for around one and a half months since a floating LNG terminal went offline on July 21, leaving industrial areas with lower gas pressure. Reduced gas supplies to gas-fired power plants have also triggered widespread power outages.To offset the fallout, Newage says it has expanded its rooftop solar capacity, which now supplies about 25 percent of its electricity needs.

The company is also investing in energy-efficient machinery and power-management systems to reduce its dependence on the grid.But these measures cannot fully absorb the cost of an unreliable energy supply.

“When there is no grid power or gas, we have to run diesel generators. That adds a lot to our cost,” said Asif.

For exporters, recovering those extra costs from buyers is difficult because they generally do not agree to higher prices when production costs rise in sourcing destinations.

“So, we have to bear a large part of the extra cost ourselves,” said the Newage Group vice chairman.

Like the garment manufacturer, PRAN-RFL Group, which makes food, beverages, plastics, household goods, furniture, and electrical and electronic products for local and foreign buyers, is also adjusting its operations.

The food maker says some of its production lines are now running below capacity.

Kamruzzaman Kamal, director of marketing at PRAN-RFL Group, said its gas-dependent factories in Narsingdi, Habiganj, Gazipur and parts of Narayanganj have been hit particularly hard.

“We are using LPG where we can. And when the gas pressure is low, we cannot run all the lines at the same time. So, we run some and keep others closed,” said Kamruzzaman.

The group currently generates around 35-38 megawatts of renewable energy for its own use, against total electricity demand of more than 200MW.

“We are working to increase our renewable power capacity to around 100MW within this fiscal year,” said Kamruzzaman. He said PRAN-RFL plans to eventually meet all of its electricity needs from solar power.

The energy crunch is also hitting the cement market, where manufacturers are paying more for electricity and other inputs but have little room to raise prices.

Mohammad Iqbal Chowdhury, CEO of LafargeHolcim Bangladesh, said the 18 percent increase in electricity prices in June, along with higher raw material and freight costs, has pushed up their production costs.

“Costs have gone up, but we cannot pass all of it on to customers,” he said.
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Local cement markets already have far more production capacity than demand. The industry has an annual capacity of about 90 lakh tonnes against demand of around 35 lakh tonnes. Demand fell by 2-5 percent up to August, making it even harder for manufacturers to raise prices without losing sales.

Iqbal said several smaller producers have already shut down, while larger companies were relying on their stronger financial position to weather the downturn.

Meanwhile, ceramic manufacturers say they are struggling to keep their kilns running amid the gas crisis.

Moynul Islam, president of the Bangladesh Ceramic Manufacturers and Exporters Association, said manufacturers had initially passed some of the higher energy costs on to customers. But that was no longer possible.

“The problem is no longer just the higher cost. In some cases, we cannot produce at all,” he said.

Gas pressure in some industrial areas has fallen from around 15 PSI to simply 5 PSI, forcing some factories to shut down or sharply cut production. Manufacturers have tried adjusting machinery to operate at lower pressure, but there is a limit to how far they can go.

Ceramic kilns must maintain a specific temperature to produce goods of the required quality. When gas pressure falls too low, manufacturers often choose not to fire the kilns rather than risk damaging an entire batch.

Similar to PRAN, other food manufacturers and exporters are also taking a hit.

Khurshid Ahmad Farhad, general manager (export) of Bombay Sweets & Company Ltd, said the company could not execute 45.47 percent of its export orders in August because of the gas shortage. Around $113,000 worth of orders remained undelivered despite advance payments from importers.

Khurshid said freight costs for shipments to the Middle East have also risen to $8,500-$12,000 per container. “If a container of chips is worth around $6,000 but the freight is $12,000, how can we continue?” he said.

The company has used diesel to keep production going, but the additional fuel cost is causing losses. Raising prices is also difficult when demand is weak.

“If this continues much longer, we cannot continue like this,” said Khurshid.

Steel mills are meanwhile adjusting their production processes to use less gas.

Sumon Chowdhury, secretary general of the Bangladesh Steel Mill Association, said mills with facilities that can turn molten steel directly into billets and then hot-roll them can maintain around 50-60 percent of normal output during the crisis.

“If a factory can produce billets directly from molten steel and then hot-roll them, it can keep producing to some extent without running a reheating furnace,” he said.

Some mills are also changing when they run equipment, depending on gas and electricity availability.

Md Quamrul Hassan, executive director and COO of ACI Consumer Brands, which supplies a wide range of household, personal care, hygiene, and food products, said factories that need to operate round the clock face a bigger problem, as running on diesel generators raises production costs by at least 10 to 15 percent.

Overall production has risen, but higher energy costs have reduced profit margins, he said.

Abdul Muktadir, chairman and managing director of Incepta Pharmaceuticals, which produces life-saving medicines, said the company is accelerating its move towards renewable energy, particularly solar power, as gas and electricity shortages push up costs.

“We have to move to renewable energy, solar panels, and we have to move very quickly,” Muktadir said. “These are our only options.”

Muktadir said Incepta currently uses four energy sources to keep its factories running -- natural gas, LPG, diesel and grid electricity.

The company initially used gas-fired generators as a backup to grid power, but later installed dual-fuel generators that can switch to diesel when gas is unavailable. It also uses LPG to run its boilers.

“We cannot simply stop. There is no opportunity to stop,” Muktadir added.

Nearly half of the industrial plots planned for the Jashore Export Processing Zone (EPZ) have already been prepared for allocation to investors, as the development of the new industrial hub in the country’s southwestern region is progressing rapidly.

Of the 415 industrial plots planned under the project, 200 have already been made ready for allocation to investors, said Abu Syeed Md Anwar Parvez, executive director (public relations) of Bangladesh Export Processing Zones Authority (BEPZA).

“Jashore EPZ is not merely an initiative to establish an industrial zone; rather, it is opening a new window of opportunity to transform the overall economic scenario of the southwestern region of the country,” he told BSS.

He said the construction of the EPZ is progressing rapidly under BEPZA’s supervision while infrastructure development and the plot allocation process are being carried out simultaneously to enable investors to establish factories and start commercial operations at the earliest possible time.

“Several local and foreign investors have already visited the Jashore EPZ,” he said, adding that BEPZA is taking steps so that investors can move ahead with factory construction and other preparatory activities without waiting for the completion of all infrastructure works.

According to BEPZA, the Jashore EPZ is being established on 510 acres of land at Prembagh Union under Abhaynagar upazila of Jashore district with the objective of attracting investment, increasing export earnings and creating large-scale employment in the southwestern region.

The project was approved by the Executive Committee of the National Economic Council (ECNEC) on November 9, 2023, at a cost of Tk 1,678.29 crore.

The land was handed over to BEPZA by the Jashore district administration on March 23, 2024.

The project aims to attract around $2 billion in investment and generate annual exports worth $2.4 billion when fully operational.

It is expected to create direct employment for 1.5 lakh people and indirect employment for another three lakh Bangladeshis.

Anwar Parvez said the simultaneous progress of plot allocation and infrastructure development would allow investors to complete factory construction and other preparations while the EPZ’s internal facilities are being developed.

“By the time investors complete their preparations for setting up factories, the necessary infrastructure of the EPZ will also be completed,” he said.

According to the project update, around 70 percent of land development work has been completed while construction of RCC canals is about 95 percent complete. Roads, drains, culverts, boundary walls and footpaths are under construction.

Construction is also underway on an office building, four six-storey factory buildings, three 10-storey residential buildings, two six-storey dormitories and two six-storey Ansar and security barracks.

The tender process for establishing a gas network by Sundarban Gas Company Limited is underway.

An initiative has also been taken to construct a 33/11 kV GIS substation under the financing and management of Bangladesh Rural Electrification Board, while the 11 kV electrical line and substation have already been commissioned.

Tenders have been invited for solar street lights and a water distribution network. Designs and estimates for the Central Effluent Treatment Plant (CETP), Sewerage Treatment Plant (STP) network and internet network are also being prepared. Two deep tube wells have already been installed.

“We hope that once Jashore EPZ becomes fully operational, it will inject new life into the local economy, create huge employment opportunities and play an important role in transforming the overall economic landscape of the southwestern region,” Anwar Parvez said.

The Jashore EPZ project is scheduled to be completed by December 31, 2026, while a proposal to extend the project tenure by one year to December 31, 2027 is under consideration.

Bangladesh's push to mechanise agriculture is facing a financing bottleneck as importers of farm machinery struggle with the high dollar rate and increased upfront margins on letters of credit (LCs).

With more funds tied up in LCs, traders with limited capital say they can no longer import the volumes they need.

Bangladesh Bank data shows LC settlements for capital machinery falling from $3.48 billion in FY23 to $1.81 billion in FY26.

The impact of tighter financing is evident in the experience of Mohammad Zahir, owner of Zahir Enterprise, a mid-sized machinery trading firm.

Speaking to The Business Standard, Zahir said importers previously did not have to deposit the full value of goods against an LC, allowing them to import larger volumes with limited working capital.

"Earlier, if we imported goods worth Tk2 crore, we could do it by depositing just 30% or 40%. But now that facility is not available. Our margin requirement has gone up; in many cases we have to deposit the full amount," he said.

Zahir said the higher margins leave more working capital tied up, forcing businesses to scale down imports.

Md Nurul Islam, president of the Bangladesh Agricultural Machinery Merchants Association, said financing pressure has intensified with the appreciation of the dollar.

"On one hand, the dollar rate is high. On the other, new policies on LC margin requirements mean we are not getting adequate bank support, so we're having to import using our own funds," he said.

"I am not getting bank support, so I have to self-finance. Meanwhile, I have to sell my goods on credit," Nurul Islam said.

He said importers often manage several shipments simultaneously, making it difficult to maintain sufficient working capital when funds are tied up across consignments.

"Managing all this has become difficult. We are now having to cut back on our import volumes," he said.

However, Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan said a 100% margin requirement for capital machinery imports does not apply universally. Margin requirements are generally set on a bank and client-specific basis, he said.

LC settlements down 41.95%

Bangladesh Bank data shows LC settlements for capital machinery imports stood at $3.48 billion in FY23, before falling to $2.66 billion in FY24 and $2.02 billion in FY25, a 41.95% decline over two years.

Settlements in FY26 stood at $1.81 billion, down nearly 48% from FY23.

Arif Hossain Khan said import volumes fluctuate with changes in tariffs and demand, making ups and downs in LC openings and settlements natural.

Import crunch may delay modernisation

Expanding machinery use in farming for land preparation, sowing, harvesting and threshing is a key part of agricultural modernisation and can reduce reliance on manual labour.

Agricultural economist Dr Jahangir Alam Khan said if agri-machinery imports decline because of the high dollar rate and LC-related complications, supply-side problems could follow.

"The decline in import volumes because of the high dollar rate and LC complications will, in effect, delay agricultural development through supply shortages," he said.

He said financing for machinery imports needed for agricultural modernisation should be made easier.

"Alongside providing subsidies to farmers, the government needs to focus on ensuring importers can bring in necessary machinery without difficulty," he said.

Long-term focus on local production

Nurul Islam stressed the need to reduce reliance on imported machinery by boosting domestic production.

He said there is scope to manufacture agri-machinery and parts, including power tillers, diesel engines, tractors and equipment used for sowing and harvesting.

However, higher production costs mean local products need policy support to remain competitive.

"If we stop the flow of imports for the goods we can manufacture here, domestic production will grow, and the country's money will remain within the country," he said.

He called for long-term planning and policy coordination to boost domestic agri-machinery manufacturing.

If financing pressure persists, the expansion of machinery supply could slow, affecting the broader push to mechanise agriculture.

Stakeholders say banking and financing facilities for machinery imports need to be eased, while domestic manufacturing capacity should be strengthened over the longer term to reduce import dependence.

Fresh LP Gas, a subsidiary of Meghna Group of Industries (MGI), has expanded its liquefied petroleum gas (LPG) transportation capacity by adding a third carrier to its fleet.

The newly added MT Mercantile-65 can carry 2,000 tonnes, raising the company’s total in-house LPG carrier capacity to 6,000 tonnes, according to a press release.

Fresh LP Gas now operates three LPG carriers, each with a capacity of 2,000 tonnes.

The new vessel will mainly transport imported LPG from Kutubdia anchorage and Chattogram outer anchorage to the company’s plants in Meghnaghat and Mongla.

The expansion will strengthen the company’s logistics capacity, allowing it to transport more imported LPG and distribute it more efficiently across different regions. It is also expected to help ensure a more reliable LPG supply across the country.

“Meeting the country’s growing LPG demand requires a more reliable supply system,” said Tanvir Mostafa, director of MGI.

He said the company would continue investing in transportation and logistics capacity to support LPG supply and strengthen energy security.

Abu Sayed Raza, chief marketing officer of Fresh LP Gas, said the additional carrier would help the company maintain year-round supplies, meet rising demand and expand distribution to underserved areas.

Thailand said Friday it would introduce clearer rules on AI data centres to regulate the fast-growing sector, and urged almost 50 sites currently under construction to hold the projects until then.

As demand for artificial intelligence heats up, tech giants are racing to invest billions of dollars in Southeast Asia, attracted by a growing plugged-in user base.

But the rapid expansion has outpaced regulation and concerns are growing across the world about the centres' impact on the environment, including their use of electricity and water, and local communities.

"Thailand is attracting interest from both local and foreign investors... We need to ensure alignment with laws, standards and the national interest," said Prime Minister Anutin Charnvirakul.

Regulations would be revised to make them "airtight" and prioritise public safety, he said at the first meeting of a new government committee on data centres.

Around 35 data centres are currently operating in Thailand, according to Danucha Pichayanan, secretary-general of the government's National Economic and Social Development Council.

Another 49 are under construction, 11 projects have been approved and 117 more are under review, he said.

"We don't have the power to suspend the construction of the 49 data centres" until the new rules are drawn up, Danucha told AFP.

"They are only asked for cooperation, if they would like to halt their construction pending the clearer regulations, which are expected next month."

New data centres -- warehouse-like facilities that store online files and power AI tools from chatbots to image generators -- are springing up worldwide, and the sector is growing particularly fast in Asia.

Microsoft announced in March it would invest more than $1 billion in cloud and AI data centre infrastructure and operations in Thailand over the next two years.

The news followed Google's launch in January of a new "cloud region" in Bangkok, with data centres that would contribute more than $40 billion to Thailand over five years.

But there are concerns in Thailand that the lack of rules up to now has allowed centres to pop up without proper consideration or regulation.

On Thursday, the energy ministry raised concerns over a Bangkok data centre it said was stockpiling 200,000 litres of diesel in underground tanks without permission.

Bangkok Governor Chadchart Sittipunt said the capital had received six applications for standalone data centres, three of which have been operating since 2022, with the other three paused pending review.

Chattogram customs house saw a strong rebound in revenue collection in August, with receipts rising 29.20% year-on-year to Tk7,092 crore after a 6.78% decline in July.

According to customs revenue statistics, the collection was Tk5,489.27 crore in August last year, meaning receipts increased by Tk1,602.73 crore this year.

The surge lifted cumulative revenue collection in the first two months of FY2026-27 to Tk14,017.68 crore, up 8.51% from Tk12,918.65 crore during the same period a year earlier.

However, the customs house remains well short of its two-month revenue target of Tk21,530.34 crore. The Tk14,017.68 crore collection leaves a deficit of Tk7,512.66 crore.

Revenue collection in July stood at Tk6,925.68 crore, down from Tk7,429.38 crore a year earlier.

The sharp turnaround in August came as port operations and import-export activities gained momentum, helping customs revenue recover from the sluggish start to the fiscal year.

"Revenue growth in August is positive. We are trying to make customs operations more dynamic to maintain this trend," Sharif Mohammad Al Amin, assistant commissioner and spokesperson for Chattogram Customs House, told TBS.

"Revenue collection depends heavily on import activities. If imports remain normal and the current growth trend continues, there is an opportunity to achieve the target," he added.

August rebound offsets July decline

The August increase more than offset July's year-on-year decline, leaving cumulative revenue Tk1,099.03 crore higher than in the corresponding period of FY2025-26.

Customs officials said import activity is a key determinant of revenue collection, as duties and taxes on imported goods account for a major share of Chattogram Customs' receipts. The value and volume of imports, along with applicable duties and taxes, directly affect collections.

Tk81,471cr collected last fiscal year

Chattogram Customs House collected Tk81,471.37 crore in FY2025-26, registering 12.37% growth from the previous fiscal year.

As Chattogram Port handles the bulk of Bangladesh's international maritime trade, its import activity has a direct bearing on customs revenue.

The strong August performance offers some relief after July's decline. But with a Tk7,512.66 crore shortfall against the two-month target, customs will need sustained revenue growth in the coming months to close the gap.

Modernising and expanding refining capacity of Eastern Refinery Limited, the country's lone facility for converting crude oil into refined petroleum products, is finally set to see the light of day. Besides directly reducing Bangladesh's reliance on imports generally in the energy sector, particularly for refined petroleum.

The Jeddah-based Islamic Development Bank (IsDB) will provide over $1 billion in financing for the modernisation project.

A financing agreement titled "Modernisation and Expansion of Eastern Refinery in Bangladesh" was signed between the Government of Bangladesh and the IsDB on Thursday (3 September).

Dr Md Mizanur Rahman, Additional Secretary of the Economic Relations Division (ERD), signed the agreement on behalf of Bangladesh, while Anasse Aissami, Director General of Country Programs, signed for the IsDB.

Prime Minister Tarique Rahman and IsDB Group Chairman Dr Muhammad Al Jasser were present at the signing ceremony.

The ERD stated that the project will be implemented by Bangladesh Petroleum Corporation (BPC) under the Energy and Mineral Resources Division.

This funding is set to elevate the ongoing development partnership between Bangladesh and the IsDB, which operates as an instrument of the Organisation of Islamic Cooperation (OIC) to new heights. According to the ERD, this marks the largest investment in a single project by the IsDB till now in Bangladesh.

Upon implementation, the refining capacity of Eastern Refinery – the country's primary oil refinery – will treble from the current 15 lakh tonnes to 45 lakh tonnes per annum.

The government expects the project to enhance fuel supply capacity, reinforce national energy security, and enable the production of eco-friendly Euro-5 standard petroleum products.

Tripling the refinery's capacity will significantly decrease Bangladesh's dependence on imported refined oil, thereby saving foreign currency and ensuring stability in the domestic energy supply chain.

Commitment to Continue Support

As one of Bangladesh's key multilateral development partners, the IsDB has historically extended support through grants, project loans, trade financing, private sector funding, and export credit guarantees.

Following the agreement signing, IsDB Group Chairman Dr Muhammad Al Jasser paid a courtesy call on Prime Minister Tarique Rahman, reiterating the bank's commitment to supporting Bangladesh's development priorities.

During the meeting, the prime minister emphasized the importance of concessional financing and assured full government cooperation to deepen the partnership between Bangladesh and the IsDB.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have separately urged the government to suspend or withdraw a new restriction on knit fabric imports under the country's Import Policy Order 2026–2029.

In letters to the Ministry of Commerce, the two trade bodies raised concerns over Sub-clause 12 of Clause 25 of the policy, which states that "knit fabrics shall not be eligible for import".

They warned that the restriction could disrupt the normal operations of export-oriented readymade garment (RMG) factories and weaken their ability to meet international buyers' requirements.

In a letter to the commerce minister on 1 September, BGMEA President Mahmud Hasan Khan said global buyers regularly demand new products, specific quality standards, customised designs and faster delivery.

Factories often need to source specialised fabrics from overseas suppliers to meet those requirements, he said.

Restricting such imports could disrupt factory operations because certain grades, colours, textures and designs demanded by international buyers are not always available in the local market, according to the BGMEA.

BKMEA President Mohammad Hatem also called for the provision to be suspended or withdrawn.

He said imported knit fabrics had already arrived at Chattogram Port, with some shipments kept in open storage, while many exporters had completed the required import formalities.

The new restriction could create serious complications in clearing those shipments and fulfilling scheduled export orders, Hatem said.

He added that the measure would further increase pressure on factories already facing production disruptions due to ongoing gas shortages.