Bangladesh Bank (BB) is set to introduce an “e-Payment Credit” facility, likely today, to promote cashless payments and help customers manage temporary cash shortages.

Under the facility, eligible customers will be able to borrow between Tk 50 and Tk 10,000 to meet essential expenses through digital payments, according to BB officials.

The credit can be used to pay utility bills, mobile recharges, education and healthcare expenses, travel costs, taxes and government service fees, deposit instalments and insurance premiums.

Banks will initially pilot the facility for at least six months before launching it commercially. A commercial rollout will require an assessment of the pilot and approval from the respective bank’s board.

The facility is strictly for digital payments. Customers cannot withdraw the credit as cash, transfer it to a bank account or add it to a mobile wallet. The approved amount must be paid directly to the designated biller through an authorised digital payment channel.

Repayment periods will be seven, 15 or 30 days, with banks charging a prescribed service fee instead of interest.

For credit of Tk 50-Tk 250, the maximum service fee will be Tk 3 for seven days, Tk 4 for 15 days and Tk 6 for 30 days. For credit of Tk 7,001-Tk 10,000, the maximum fees will be Tk 35, Tk 70 and Tk 130, respectively.

Customers who repay on time will not face any additional interest or early-settlement charges. Penalties may apply to overdue payments but cannot exceed the applicable daily service fee.

Banks must complete the entire process -- including onboarding, credit approval, payment and repayment -- digitally, using secure authentication methods such as one-time passwords and two-factor or multi-factor authentication.

Banks may partner with mobile financial service providers, payment service providers and fintech firms to operate the facility.

The scheme will remain subject to BB’s rules on loan classification, risk management, customer protection, anti-money laundering and data security.

Bangladesh Bank Governor Mostaqur Rahman has said 25% of loans under its low-cost, easy-term pre-finance schemes would be disbursed this month, with full disbursement completed by December.

The impact of the low-cost financing on the economy would become visible next year, he said at a programme titled "A Cashless Ecosystem for Financial Inclusion" organised by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) in Dhaka today (3 September).

Mostaqur said agriculture and small and medium enterprises had been given priority under the pre-finance schemes, with a particular focus on reaching borrowers in rural areas.

"We will disburse 25% of the funds under the schemes this month and complete the disbursement by December. Its impact on the economy will be visible next year," he said.

The Bangladesh Bank earlier announced a Tk60,000 crore "Stimulus Package-2026" to facilitate credit flow to the private sector and support economic expansion.

Speaking about the Bangla QR payment system, the governor at the event said several large companies had sought an extension before its implementation deadline, but the central bank had refused to grant additional time.

"I had made it clear that not a single extra day would be given. Had they failed to comply, the regulator would have shut them down," he said. The government will make Bangla QR codes mandatory for obtaining trade licences in the future, he added.

According to the governor, the number of Bangla QR merchants has increased from around 8 lakh when the system was launched to 32 lakh currently.

He said wider adoption of Bangla QR could help curb extortion and increase government revenue by bringing more transactions into the formal financial system.

On inflation, Mostaqur said persistent high inflation had previously limited the scope for cutting the policy interest rate. He said he had examined inflation data and found scope for improvement in the way the data were generated.

"There was pressure because inflation was so high that the policy rate could not be reduced," he said, adding that inflation had not fallen as expected partly because of price pressures in two major products, without specifying them. He expressed optimism that inflation could eventually be brought down to around 7%.

Bangladesh’s fossil fuel import bill could rise by up to USD 2.8 billion in 2026, adding pressure on the country’s economy and raising energy security concerns as the current supply crisis risks deepening long-term dependence on imported gas, a new analysis by international research group Zero Carbon Analytics (ZCA) showed.

ZCA estimates that the additional imported fossil fuel spending in 2026 is equivalent to the cost of installing around 8 GW of rooftop solar, enough to increase generation capacity by around 25% on Bangladesh’s current 32 GW power grid.

Bangladesh’s LNG imports between January and August 2026 were nearly 13% lower than during the same period in 2025.

The sharpest decline came between July and August, when imports plunged by around 83%, from 0.63 million tonnes to 0.11 million tonnes, amid disruptions to supplies through the Strait of Hormuz.

But lower imports have not meant lower costs. If oil, gas and coal prices remain at the January–August average for the rest of the year, ZCA estimates Bangladesh’s fossil fuel import bill could be around 30% higher than in 2025.

The additional cost would be equivalent to around 10% of Bangladesh’s trade deficit and could add pressure on the taka, inflation and borrowing costs. If current fuel prices persist, ZCA estimates the country’s import cover could fall from 5.7 to 5.2 months, it said.

Around 64% of Bangladesh’s electricity generation depends on gas, leaving the power system highly exposed to LNG supply disruptions.

On 11 August, the power supply shortfall reached 3,592MW - around 20% of demand at the time.

The supply crunch is already affecting households and major industries. Some rural areas have reportedly experienced power outages lasting eight to 10 hours a day.

Bangladesh’s exposure reflects its growing reliance on imported energy. In 2023, around 46% of the country’s total energy supply was imported, while imports met 65% of its power needs in FY2024–25.

Nearly two-thirds of Bangladesh’s LNG supplies in 2025 passed through the Strait of Hormuz.
Doubling down on imported gas

To address immediate shortages, Bangladesh has sought LNG from multiple suppliers and the spot market.

The government approved two spot LNG cargoes for August and September and procured another eight cargoes from suppliers in the UK, Australia, Malaysia and Oman. It has also sought additional diesel supplies from India.

At the same time, Bangladesh is making longer-term commitments to imported gas, including an agreement to purchase 117 LNG cargoes from the United States between 2026 and 2038.

Long-term contracts, however, do not eliminate supply risks. Three major LNG suppliers to Bangladesh have declared force majeure on contractual obligations amid the current crisis, while the International Energy Agency projects a cumulative global LNG supply loss of around 140 billion cubic metres through 2030.

ZCA’s analysis points to rooftop solar as one option for reducing Bangladesh’s exposure to imported fuels and international price volatility.

Renewables accounted for just over 5% of Bangladesh’s electricity generation in 2025, with installed renewable capacity reaching 1.49GW.

According to IEEFA, a 1MW rooftop solar installation could save around $180,000 a year in imported fuel costs.

Bangladesh needs to add around 760MW of renewable energy capacity each year through 2030 to meet its 20% renewable electricity target. Yet only 358MW of renewable projects were under construction as of February 2026.

The Bangladesh Bank has widened the scope of financing against foreign currency deposits held with Offshore Banking Units (OBUs), allowing such balances to be used as collateral for a broader range of loans in local currency.

The central bank issued a circular today (3 September) modifying existing provisions on the use of balances held in private foreign currency accounts and non-resident foreign currency deposit accounts as collateral.

According to the circular, issued by the Foreign Exchange Policy Department-1, balances held in private foreign currency accounts and non-resident foreign currency deposit accounts maintained under Sections I and II of Chapter 13 of the Guidelines for Foreign Exchange Transactions (GFET) may now be used as collateral against short-term working capital financing in local currency to resident companies, firms and individuals.

The balances can also be used as collateral against short-term finance or consumer finance in local currency for resident persons and non-resident Bangladeshis (NRBs), subject to compliance with existing regulatory instructions.

Previously, the provision allowed such foreign currency balances to be used as collateral only against short-term working capital financing in local currency for resident companies, firms and individuals.

The latest move is aimed at widening financing options against foreign currency balances maintained with OBUs and providing greater access to local-currency financing against such deposits.

The circular referred to an earlier Foreign Exchange (FE) Circular No 27, issued on 3 July 2025, under which OBUs could allow foreign currency deposits of non-resident account holders to be used by their respective Domestic Banking Units (DBUs) as collateral against financing to resident companies, firms and individuals.

It also reiterated that balances held in private foreign currency accounts and non-resident foreign currency deposit accounts may be used as collateral in accordance with the relevant provisions of the Foreign Exchange Regulation Act, 1947 and the GFET.

Bangladesh Bank said all other instructions contained in the earlier circular would remain unchanged.

Aamra Networks Limited has recommended a nominal 0.10% cash dividend for its general shareholders only for FY2025, which amounts to just 1 paisa per share.

The announcement follows a disastrous financial year for the IT sector company, during which its earnings plummeted by 94%, and it struggled with a deepening cash flow crisis that has already relegated it to the "Z" category on the stock exchange.

According to the company's financial statements finalised in a board meeting on 3 September, the total dividend payout for general shareholders will amount to a mere Tk6.22 lakh against 6.22 crore shares.

In a move to preserve some liquidity, the company's sponsors and directors, who hold 3.07 crore shares, will not receive any portion of this dividend.

This token gesture places Aamra Networks among the lowest dividend-yielding companies on the Dhaka Stock Exchange, mirroring recent ultra-low payouts from firms like Acme Pesticide and National Feed Mill.

The company's financial health appears to be in a tailspin. For the 2024-25 fiscal year, the earnings per share (EPS) fell to a negligible Tk0.13, down from significantly higher levels in the previous year. The fourth quarter alone, spanning April to June 2025, saw the company incur a net loss of Tk5.95 crore.

The downturn showed no signs of abating in the 2025-26 fiscal year either. For the July-March period, revenue dropped by 22% to Tk55.85 crore, culminating in a nine-month net loss of Tk4.12 crore.

Management attributed this sharp decline to a combination of falling sales and a rise in operating expenses. However, internal sources point to a more systemic issue. A senior official from Aamra Networks, speaking on condition of anonymity, revealed that the company is facing an acute fund crisis driven by the non-recovery of dues from corporate clients. Since the company primarily serves large businesses, the failure of these clients to clear payments for services rendered has crippled the firm's cash flow.

This is reflected in the net operating cash flow per share, which stood at a negative Tk0.55 at the end of March 2026.

The 1 paisa dividend carries significant regulatory weight. Under current rules, a company declaring any dividend up to 5% is placed in the "B" category, while those paying 10% or more are eligible for the "A" category.

Moving out of the "Z" category is crucial for the company, as both "A" and "B" category stocks are eligible for margin loan facilities under the BSEC's new regulations.

Aamra Networks was downgraded to the junk category in February 2025 after it failed to disburse a previously approved 10% cash dividend for the 2023-24 fiscal year.

However, the path back to the "B" category remains complicated. The company failed to hold its Annual General Meeting (AGM) for the 2024-25 fiscal year within the legally stipulated time. Consequently, the date for the upcoming AGM is subject to consent from the honorable High Court. The record date for the 1 paisa dividend has been set for 24 September.

Aamra Networks had previously been an active player in the capital market, raising Tk56.25 crore through its initial public offering in 2017 and a further Tk93 crore through a rights offer in 2024 for business expansion.

Despite these capital injections, the company's recent operational paralysis has left investors wary. On Thursday, its shares closed marginally higher at Tk19.80, though market analysts warn that the company's reliance on "paper profits" and its struggle to collect actual cash from clients remains a major red flag for the bourse, according to the market insiders.

Years of overfishing, destructive fishing practices and damage to marine habitats are depleting Bangladesh’s fish stocks, with catches of hilsa and other marine species falling sharply.

The decline is increasingly hitting fishermen’s livelihoods, as poorer catches leave them struggling to cover fuel, food and other costs of each trip.

During a recent visit to the Alipur fish landing centres, Mizan Hossain, owner of the trawler FB Nurjahan, said its catch this year was at least 40 percent lower than last year.

He blamed widespread trawling in the sea.

“Trawling nets catch fish of all sizes and species. The smaller fish die as soon as they are caught in the nets,” he said.

Fazlu Gazi, former president of the Mahipur Fishermen’s Association near Kuakata, said hilsa catches this year were the lowest he had seen in four to five years.

“We give fishers advance payments every year. With catches falling so sharply, we are struggling even to recover that money,” he said.

Patuakhali District Fisheries Officer Bijoy Nandi also acknowledged a sharp decline in catches, saying it was not limited to hilsa.

“Hilsa catches have fallen significantly, and catches of other marine fish have also declined,” he said. “By our estimate, overall fishing is down by about one-third from last year.”

The situation is similar in Cox’s Bazar. Ismail Hossain, owner of Shah Jabbaria Fish Enterprise, said trawlers once brought 1.5 to 2 tonnes of hilsa from a single trip. Now, several trawlers are needed to collect the same quantity.

Each trip costs around Tk 4 lakh, including fuel and other expenses. Although trawlers catch other species, the overall haul is often so low that many operate at a loss, he said.

Mohammad Ramiz, known as Ledu Majhi, a Kutubdia resident who operates a trawler owned by Mahiuddin Company, said fishermen are spending long hours at sea for little return.

“There are hardly any fish in the sea. We cast our nets and wait for hours, but often catch very little,” he said.

Since the 65-day fishing ban ended on July 23 this year, his trawler has made 10 trips, spending about Tk 40 lakh and earning roughly Tk 42 lakh from fish sales. In the past, a trawler could land fish worth Tk 10 lakh to Tk 40 lakh on a single trip, he said.

Ledu blamed the decline partly on the growing use of trawling in shallow waters.

Once largely confined to large vessels operating in the deep sea, trawling is now also being used by wooden trawlers in shallower areas, causing damage to marine habitats and killing juvenile fish and even fish fry.

The fishermen’s experience is reflected in official data. According to Department of Fisheries (DoF) figures, Bangladesh’s marine fish catch rose steadily from 5.17 lakh tonnes in FY2009-10 to a record 7.06 lakh tonnes in FY2021-22.

The figure has since declined for four consecutive years. The provisional FY2025-26 figure of 5.15 lakh tonnes would be the lowest in 16 years, down 27 percent from the peak.

Mohammed Shariful Azam, senior assistant director of the blue economy section at the DoF, said the decline was closely linked to falling hilsa catches, which account for nearly 40 percent of the marine catch.

Talking to The Daily Star, Shariful identified pollution, changes in river and marine habitats, and overfishing as major factors behind the decline in hilsa.

Pollution is degrading rivers and breeding grounds, reducing the hatching and survival of hilsa juveniles, he said. Underwater shoals and sandbars, locally known as dubchar, have also formed in several areas, making migration routes shallower and obstructing hilsa movement between the sea and rivers.

Overfishing is adding to the pressure. More than 85 percent of the country’s roughly 30,000 artisanal fishing boats target hilsa, while years of excessive harvesting have depleted the stock.

The problem extends beyond hilsa. Shariful said the widespread use of behundi jal, or estuarine set bag nets, indiscriminately catches marine fish, particularly fry and juveniles. Despite repeated enforcement drives, controlling their use remains difficult.

Monofilament gillnets and illegal trawl doors and nets used in areas such as Barguna, Patuakhali and Kalapara are also contributing to the depletion of fish stocks, he added.

Shariful said marine fish stocks could gradually recover if fisheries management is strengthened, sea patrols intensified and fishing bans enforced more effectively. However, rebuilding depleted stocks would take several years.

He identified vessel tracking as a potential tool for strengthening monitoring. The Fisheries Monitoring Centre in Chittagong could play a key role if fishing boats are brought under a tracking system.

Discussions are underway with Bangladesh Satellite Company on the initiative, which Shariful described as a potentially major step. He also stressed the need to raise awareness among fishermen and boat owners.

Bangladesh retained the second position in garment exports to the US market in the January-July period this year as China’s apparel exports to the American market fell at their steepest rate.

Earlier, in January-February this year, Bangladesh overtook China for the first time in garment shipments to the USA as the Trump administration imposed higher tariffs on imports of Chinese garment items.

Also, in the January-July period of this year, Bangladesh retained its position although the country’s garment exports to the USA fell 6.50 percent year-over-year to $4.66 billion because of lower demand for locally made apparel in the American market, according to data from the Office of Textiles and Apparel (OTEXA), the data provider of global apparel imports by the US.

In July this year alone, Bangladesh’s garment exports to the US fell 10.73 percent, according to the OTEXA data.

Also, overall US apparel imports fell 8.65 percent year-on-year in January-July 2026, totaling $41.83 billion.

China’s shipments of apparel to the US fell 34.21 percent year-on-year to $4.55 billion, while in the case of India, they fell by 25.77 percent to $2.45 billion, and Pakistan’s by 5.60 percent to $1.26 billion.

At the same time, garment shipments from Vietnam fell by 1.03 percent to $9.36 billion.

Meanwhile, Indonesia posted a gain of 2.76 percent year-on-year to $2.74 billion and Cambodia a rise of 10.48 percent to $2.62 billion, the OTEXA data also said.

By piece count, Bangladesh, China and India’s apparel exports to the US fell by 4.34 percent, 24.17 percent and 24.02 percent, respectively.

But unit prices increased to some extent for Vietnam, Indonesia and Cambodia.

Unit prices fell across the board, led by China at 13.24 percent, and in the case of Bangladesh, the rate fell by a moderate 2.26 percent.

Nearly 18,000 customers of Sammilito Islami Bank have applied to withdraw Tk1,300 crore from their deposits on the first day of accepting withdrawal applications yesterday (1 September), the bank's managing director (MD) said today (2 September).

The bank began accepting applications from depositors at its branches and sub-branches on 1 September, with payments scheduled to begin on 7 September after verification.

The bank has nearly 84 lakh customers, meaning only 0.21% have so far applied to withdraw their deposits, said MD Md Abedur Rahman Sikder.

"The amount sought by 18,000 customers is very small compared with our capital. This indicates that people still have confidence in the bank," he said.

Of the applicants, customers seeking to close their accounts want to withdraw Tk254 crore, an amount the MD said was lower than the bank's normal daily transactions.

How many customers applied yesterday to withdraw their deposits will be known tomorrow.

The Sammilito Bank was formed by merging five troubled Islamic banks: EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank.

Under Bangladesh Bank's instructions, individual depositors will be allowed to withdraw the principal amount from current and savings accounts as well as the principal of term deposits. However, accrued or payable profit on the deposits will not be available under the facility.

Customers withdrawing their principal in full will be considered to have made a final settlement for the respective deposit. Any outstanding loan or liability with the predecessor bank will be adjusted against the deposit before payment.

Customers who keep their deposits with the bank can continue their accounts and earn profit at the applicable contractual rates.

However, if a term deposit is encashed before maturity, the customer will receive the principal but will not receive profit on the amount. In case of partial withdrawal, profit will remain payable on the balance according to applicable rules.

Dhaka Electric Supply Company Limited (Desco) has received formal consent from the Bangladesh Securities and Exchange Commission (BSEC) to issue 4.59 crore irredeemable non-cumulative preference shares to the government.

According to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (2 September), the shares carry a face value of Tk10 each, amounting to a total of Tk45.90 crore.

These shares are being issued in favour of the Government of Bangladesh, represented by the Secretary of the Power Division under the Ministry of Power, Energy, and Mineral Resources, against equity already provided by the state.

This marks the third such instance in recent years where the state-owned power distributor has regularised government capital injections through the issuance of preference shares.

Previously, in July 2024, the regulator approved a substantial Tk607 crore issuance, followed by a smaller Tk2.38 crore issuance in May 2025.

Following the announcement, Desco's share price experienced a marginal correction, edging down by 0.43% to settle at Tk23 on the premier bourse.

The company's standing in the capital market remains under scrutiny, as it was downgraded to the 'Z' or junk category in October 2025 for failing to reward shareholders with dividends for two consecutive financial years.

In terms of financial performance, Desco's latest unaudited reports indicate a volatile but recovering bottom line. For the first nine months of the 2025-26 fiscal year (July-March), the company reported an earnings per share (EPS) of Tk1.46, marking a significant turnaround from a loss of Tk1.98 per share in the corresponding period of the previous year. However, the third quarter alone (January-March 2026) saw a net loss of Tk0.81 per share, although this was a notable improvement from the Tk1.83 loss recorded a year earlier.

As of 31 March 2026, the company's net asset value (NAV) per share stood at Tk39.05, while its net operating cash flow per share rose to Tk13.85 from Tk8.98 in the prior year.

Revenue from Taiwan’s semiconductor chip sector is expected to soar 40 percent this year, a top industry official said Wednesday, driven by skyrocketing demand for artificial intelligence technology.

The island is a global powerhouse in the manufacturing of chips that are used in everything from smartphones to electric vehicles, with nearly all of the most advanced ones made there.

Taiwan’s dominance of the critical sector has been a source of friction with the United States, with President Donald Trump accusing it of stealing the American chip industry and pressuring Taiwanese companies to build more on US soil.

“We are in a new era of the semiconductor industry from a technology point of view,” Wu Chih-i, president of the Taiwan Semiconductor Industry Association, said at the opening of the SEMICON expo in Taipei, noting AI has pushed the development of new technology. “This year Taiwan’s semiconductor industry performs even better. Our total revenue is projected to be close to US$300 billion. That’s more than 40 percent growth over last year,” Wu said.

However, he added that energy supply, talent and cyber security were “becoming more critical” for the industry and “no single country” could dominate the chip supply chain. “Continuous progress will require even closer semiconductor collaboration between many countries,” Wu said. Governments and tech giants are pouring billions into building data centres that can train and run AI tools such as chatbots, image generators and agents that can execute tasks.

This has turbocharged earnings of companies such as Taiwanese chip giant TSMC and driven global stock markets to all-time highs this year. But there are concerns over when that investment will see a return, and warnings that company valuations have gone too far.

This would be the decade of AI, said Ajit Manocha, the head of SEMI, a global industry association for chip design and manufacturing supply chain.

But Manocha noted that the world was in the “early innings” and there would be “a lot more challenges” with the technology.

“It’s not going to be a straight line,” Manocha told SEMICON.

“We’re going to have to learn how to deal with and navigate through the new opportunities and new headwinds.”

The country's capital bourse extended its winning streak for a second consecutive session today (2 September), driven by broad-based bargain hunting on beaten-down shares, pushing daily market turnover up 22.5% to Tk731 crore.

The benchmark DSEX Index of the Dhaka Stock Exchange (DSE) rose 23 points, or 0.41%, to close at 5,660 points, compared to 5,637.31 points in the previous session.

The Shariah-compliant DSES Index advanced 4.70 points, or 0.42%, to 1,135.12, while the blue-chip DS30 Index gained 3.45 points, or 0.16%, to finish at 2,125.49.

DSE data showed the market opened strong, hitting an intraday peak of 5,673 points before temporary selling pressure dragged the index down to 5,644 points by mid-morning. The index later regained momentum to close in positive territory, marking the second straight day of gains.

Late-session accumulation in textile and insurance stocks secured a green close at the end of the trading session.

Out of 395 issues traded, 239 stocks advanced, 92 declined, and 57 remained unchanged, the data showed.

EBL Securities, in its daily market commentary, said the benchmark index of the capital bourse extended its recovery for a second consecutive session, as opportunistic investors sustained broad-based bargain hunting, accumulating beaten-down scrips at perceived attractive price levels, although broader investor sentiment remained cautious amid persistent domestic concerns.

The market opened on an optimistic note, although early gains were pared back as the benchmark index faced intermittent selling pressure, with investors remaining active on both sides of the trading fence. However, sustained buying interest, particularly in the textile and insurance sectors, persisted throughout the session, ultimately enabling the market to close higher, it said.

On the sectoral front, Textile sector stocks accounted for the highest share of turnover by 39.5%, followed by general insurance by 13.1% and Pharma sector stock by 10.3%.

Sectors mostly posted positive returns, where General Insurance by 2.3%, Textile 2% and Tannery 1.4% exhibited the highest return, while only Financial Institution and Jute sector stocks exhibited marginal correction on the bourse.

The port city bourse, CSE, ended in positive terrain. The Selective Categories' Index (CSCX) and All Share Price Index (CASPI) advanced by 31.7 points and 56.2 points, respectively.

The government is set to sign a $1.0004 billion loan agreement with the Islamic Development Bank (IsDB) on Thursday (3 September) to finance the construction of the second unit of Eastern Refinery Limited (ERL) in Chattogram, a major project aimed at strengthening Bangladesh's energy security.

The agreement will be signed at the Cabinet Division at the Secretariat in the presence of Prime Minister Tarique Rahman, according to officials at the Economic Relations Division (ERD).

IsDB Group Chairman Muhammad Sulaiman Al Jasser is currently visiting Bangladesh to attend the signing ceremony.

Govt okays $1b stringent IsDB loan for Eastern Refinery expansion
The loan was approved at a meeting of the Standing Committee on Non-Concessional Loan (SCNCL), chaired by Finance Minister Amir Khosru Mahmud Chowdhury, on 7 July.

Although the financing comes with highly non-concessional terms, ERD officials consider the refinery expansion project economically viable and strategically important for the country's energy security.

The IsDB financing will be provided under two separate facilities. The first, Forward Lease 1, will provide $520.59 million, while Forward Lease 2 will provide $483.10 million. An additional $0.6 million technical assistance grant will also be provided under the first facility.

Loan carries 5.45% markup

The loan carries a relatively high financing cost, with the total markup rate calculated at 5.44627%.

According to ERD documents, the calculation was based on the six-month Term Secured Overnight Financing Rate (SOFR) of 3.84627% on 5 July 2026, with a 1.60 percentage-point spread and risk premium added to the benchmark rate.

The total repayment period will be 20 years, including a five-year grace period. The remaining amount will be repaid in semi-annual instalments over 15 years.

The grant elements of Forward Lease 1 and Forward Lease 2 stand at negative 3.12% and negative 3.24%, respectively. As a result, the ERD has classified the financing as "highly non-concessional".

Refining capacity to triple

The Eastern Refinery modernisation and expansion project is expected to significantly increase the country's domestic oil-refining capacity.

ERL currently has an annual refining capacity of 1.5 million tonnes. Once the modernisation and second-unit expansion are completed, the refinery's capacity is expected to increase by another 3 million tonnes to 4.5 million tonnes annually.

This would triple ERL's existing refining capacity and help reduce Bangladesh's dependence on imported refined petroleum products.

The overall cost of the project has been estimated at Tk31,000.57 crore. Of this, Tk18,566.74 crore will come from government financing, while Bangladesh Petroleum Corporation (BPC), the project's implementing agency, will provide Tk12,433.83 crore from its own funds.

The project implementation period has been set from January 2025 to June 2030.

Project cost revised downward

The Eastern Refinery Modernisation and Expansion Project was initially approved conditionally by the Executive Committee of the National Economic Council (Ecnec) on 23 December last year at an estimated cost of Tk35,465 crore.

Following further scrutiny and assessment after the Ecnec approval, the project cost was reduced by Tk4,465 crore to Tk31,000.57 crore.

Well above the European Central Bank’s two-percent target, the figure from the EU’s statistical office was up sharply from 2.9 percent in July and in line with forecasts by analysts for Bloomberg.

“Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in August,” Eurostat said, noting that energy prices were up 14.3 percent in August after rising 10.3 percent in July.

The US war against Iran and the near-total closure of the Strait of Hormuz, a key energy trade route, have sent global energy costs soaring.

“Inflation should remain well above target into next year, as higher gas and food prices put additional upward pressure on the index,” said Leo Barincou of Oxford Economics. The ECB is expected to again raise interest rates at its meeting on September 10 to tame the surge in prices, after a first hike in June.

The bank’s chief, Christine Lagarde, warned in July that the energy shock from the conflict “could intensify further”.

“The ECB will hike again next week,” said Kamil Kovar at Moody’s Analytics, adding that the jury was out on whether the decision would be followed by another increase in December.

“The broad-based increase in energy prices -- not just transport fuel, but also gas and now even electricity -- is playing in hawks’ favour,” he said.

Core inflation, which strips out volatile energy and food prices, has remained largely stable in recent months.

In August it slowed back to 2.4 percent after accelerating slightly to 2.5 in July.

Food and drinks inflation in August remained at 1.2 percent, the same level recorded last month. Eurozone inflation was last above 3.3 percent in September 2023, when it stood at 4.3 percent.

At the time consumer price rises were slowing after reaching a peak of 10.6 percent in October 2022, driven by surging energy prices caused by Russia’s invasion of Ukraine.

President Donald Trump’s plan to secure direct US access to a large share of Venezuela’s vast oil reserves could end up derailing the country’s long-awaited petroleum revival by stifling competition, distorting markets and deterring the foreign investment needed to rebuild the South American nation’s battered energy industry.

The plan unveiled on Monday would see Washington acquire a 35 percent equity stake in private oil firm North American Blue Energy Partners (NABEP), which is controlled by Venezuelan businessman Alejandro Betancourt.

The company would receive a 100-year lease on 17 Venezuelan oilfields holding an estimated 65 billion barrels of reserves.

In exchange, the US would receive a guaranteed 20 percent share of production at cost and retain a right of first refusal to purchase all remaining output. The arrangement would make NABEP the world’s second-largest private oil company by reserves, behind only Saudi Arabia’s national oil giant.

NABEP, which currently produces around 170,000 barrels per day, says it aims to raise output to more than 1 million bpd in the near term.

The Trump administration argues that the arrangement is a key part of its “three-part plan of stabilization, reconstruction and democratic transition” for Venezuela after its removal of former President Nicolas Maduro in January.

The White House adds that the deal will help the US create “new robust, strategic and defensible supply chains” in the Western Hemisphere, allowing Washington to refill its depleted strategic petroleum reserves, lower fuel costs and promote the “revitalization” of US manufacturing.

The proposal has already drawn fierce criticism from Venezuela’s opposition and Democrats in the US, with some calling it akin to modern-day colonialism and others arguing that it bears the hallmarks of election-year policymaking as Trump faces growing pressure over cost-of-living concerns ahead of the crucial midterm elections in November.

What’s clear is that his proposal carries significant political, legal and commercial risks, not least the threat of hampering the recovery it’s seeking to encourage.

A TWO-TIERED SYSTEM

The US has never exercised direct control over another country’s oil resources.

Even after the US invasion of Iraq in 2003, Baghdad remained in charge of resource decisions.

At present, such an arrangement appears difficult to implement.

The US government lacks the legal mechanisms necessary to routinely purchase and dispose of crude oil below market prices.

Yet a determined administration could seek to rewrite the rules, establish new purchasing structures or create government-backed trading mechanisms to facilitate the arrangement.

The bigger problem is that such a framework could inhibit development of the wider Venezuelan oil sector.

By granting NABEP and the US government privileged commercial terms, Washington risks creating a two-tiered market in Venezuela.

Companies competing with NABEP, including Chevron, currently the largest US producer operating in the country, would be placed at a structural disadvantage because they would have to buy and sell crude at prevailing market prices while a favoured competitor would enjoy privileged market access.

Investors may question whether future projects will compete on economic merit or political connections, and whether the rules of the game may change along with the leadership in Washington and Caracas.

That is precisely the kind of market distortion that oil companies considering multi-billion-dollar investments tend to avoid.

Chevron and several other international energy companies are this week expected to sign agreements to develop new projects in Venezuela.

Those investments are based on the country’s current hydrocarbon framework, which was revised to attract foreign capital after Maduro’s ouster.

But this new source of uncertainty could significantly dampen investment appetite at precisely the moment Venezuela is attempting to reestablish itself as a major oil producer.

HERE TODAY, GONE TOMORROW

Regenerating Venezuela’s oil industry will be no easy feat.

The country’s oil production collapsed following years of underinvestment, operational mismanagement and corruption after the sector’s nationalisation in 2007, a downturn compounded by US sanctions.

Output has fallen from roughly 3.5 million bpd in the 1990s to about 1 million bpd today.

Production is initially likely to recover to around 1.5 million bpd within the next two years, according to ROI estimates, as investment gathers pace and existing fields are revived.

That would constitute just over 1 percent of global supplies today.

Moreover, Venezuelan output is forecast to reach 2.3 million bpd by 2035 and exceed 3 million bpd by 2050, according to consultancy Rystad Energy, with most of the growth coming from the resource-rich Orinoco Belt.

Yet expanding production is only part of the challenge.

Decades of neglect have left the country short of the processing facilities, pipelines, storage terminals, export capacity and power infrastructure required to support a large-scale output recovery.

Many facilities today lie in complete disrepair, requiring reconstruction from scratch or costly refurbishments.

Rebuilding those assets will require tens of billions of dollars and, crucially, the participation of multiple international companies willing to commit capital over several decades.

Introducing a new layer of political uncertainty into Venezuela — a country that has nationalized foreign oil assets twice in recent decades — could make securing the necessary financing more difficult or expensive.

A plan designed to accelerate the recovery of one of the world’s largest oil endowments could thus slow it down instead.

Bangladesh's benchmark stock index significantly underperformed its regional peers in August, posting the second-worst return among the tracked markets.

According to the "Monthly Market Wrap" for August by Sheltech Brokerage Limited, the DSEX declined 297 points, or 5.05% month-on-month, to 5,598, snapping a four-month winning streak.

Among eight tracked regional markets, only Thailand's SET Index performed worse, declining 1.75%, while India's S&P BSE Sensex fell 1.46%.

By contrast, Vietnam's VN-Index gained 5.01%, Indonesia's IDX Composite rose 4.64%, Sri Lanka's ASPI advanced 0.99%, Pakistan's KSE 100 increased 0.50%, and Malaysia's FTSE Bursa Malaysia KLCI edged up 0.06%.

The sharp divergence highlights the weakness of Bangladesh's market compared with most regional peers during the month.

DSEX falls as energy crisis overshadows reforms

Sheltech Brokerage said in its report, the DSEX's performance was primarily shaped by the energy supply crisis, uncertainty surrounding the finalisation of margin rule amendments and reports of heightened regulatory oversight.

The market initially witnessed a tug-of-war between buying and selling interest as investors assessed the energy crisis and awaited clarity on the proposed margin rule changes. This came despite Bangladesh Bank's decision to reduce the policy rate by 50 basis points, which was expected to provide some support to economic activity and liquidity, it added.

The margin rule amendment was eventually finalised in the middle of the month, offering greater flexibility to investors. However, the regulatory development failed to reverse the market's downward trajectory, read the report.

Selling pressure persisted as concerns over the energy crisis intensified, particularly over its potential impact on industrial production, corporate earnings and the broader economy. Media reports suggesting possible regulatory tightening further unsettled investors, said Sheltech Brokerage.

"Although subsequent regulatory clarification denied some of the reported potential measures, investor confidence remained weak. Selling pressure intensified toward the end of August, pushing the DSEX to an approximately two-month low."

At the same time, trading activity deteriorated sharply. Average daily turnover fell 30.16% month-on-month to Tk876 crore, while market breadth declined, reflecting broad-based selling pressure amid subdued participation.

Market insiders said retail investors remained the most active participants during the downturn, particularly on the selling side. Foreign investors were also more active in selling than buying, while institutional investors were mostly on the buying side during sessions when the DSEX declined.

The weakness was particularly evident among large-cap stocks. While gains remained concentrated in a handful of Z-category and mid-cap companies, broad-based weakness in large-cap shares exerted significant pressure on the benchmark index. The market's sectoral performance was also overwhelmingly negative.

Almost all sectors posted negative returns during the month. IT led the decline with a 9.94% fall, followed by mutual funds at 9.56%, cement at 9.08%, ceramics at 8.37% and non-bank financial institutions at 8.36%.

The monthly gainers' list was led by Tung Hai Knitting, whose share price rose 53.57%, followed by GBB Power with a 50% gain and Saiham Textile with 43.09%. Nitol Insurance and Alltex Industries gained 25.56% and 19.61%, respectively.

On the other hand, FAR Chemical suffered the steepest decline among the major losers, falling 32.79%. Sharp Industries dropped 31.91%, ML Dyeing 26.97%, AIBL First Mutual Fund 26.15% and Sunlife Insurance 25.65%.

Investors await energy relief, earnings catalysts

The market's August performance stands in sharp contrast to the gains recorded by most regional peers, raising concerns over the domestic market's ability to attract fresh investment amid persistent economic challenges.

Sheltech Brokerage said the energy crisis has emerged as a particularly important concern because prolonged shortages can disrupt factory operations, reduce capacity utilisation and eventually weaken corporate earnings. Investors are therefore closely watching developments in energy supply and their impact on businesses.

"The upcoming earnings and dividend announcements from companies with June year-end financial periods are also expected to influence market direction in the near term."

According to Sheltech Brokerage, investors will likely assess whether renewed buying interest can emerge and help the DSEX defend its 5,527–5,643-point support zone.

The market's ability to hold this range could be important in determining whether the recent correction stabilises or extends further.

Meanwhile, the combination of regulatory reforms and weak investor sentiment presents a mixed picture. The finalisation of the margin rules removed some uncertainty, while monetary easing offered another potential positive catalyst. Yet these measures have so far failed to outweigh concerns surrounding energy supply and the broader economic outlook, said Sheltech Brokerage.

The government plans to cut the minimum local ownership requirement for mobile operators to 10 percent from 15 percent, according to the latest draft of the Telecommunications Network and Licensing Policy.

The draft, seen by The Daily Star, says operators would have to maintain the 10 percent local ownership through an approved ownership structure while maintaining substantial operations in Bangladesh.

The proposal has received mixed reactions from industry players and experts. Some have welcomed the reduction, while others say the government should remove the local ownership requirement altogether.

Shahed Alam, chief corporate and regulatory affairs officer at Robi Axiata, said the earlier restriction on foreign investment in existing telecom companies was not fully consistent with existing laws or the government’s commitments.

He said the restriction did not appear to comply with the Foreign Direct Investment Protection Act or the government’s pledge not to force existing foreign investors to sell their stakes.

“We welcome the latest move to restore and reaffirm this commitment,” Shahed told The Daily Star. “This is a positive step towards maintaining policy consistency, strengthening investor confidence and reinforcing Bangladesh’s commitment to a predictable and investment-friendly environment.”

Taimur Rahman, head of corporate and regulatory affairs at Banglalink, said the company had consistently argued that a mandatory local ownership requirement could discourage foreign investment.

Greater local participation could be encouraged, he said, but it should not be compulsory.

He also called for meaningful consultation with telecom operators before any policy changes are finalised.

Major Gen (retd) Md Emdad Ul Bari, chairman of the Bangladesh Telecommunication Regulatory Commission (BTRC), said the government would make the final decision on foreign ownership.

“Fundamentally, we believe there could be majority foreign ownership at the local infrastructure layer, while ownership at the international layer should remain with local operators,” he said.

The ownership structures of the country’s three private mobile operators show their strong reliance on foreign investment.

At Grameenphone, Telenor owns 55.8 percent and Grameen Telecom 34.2 percent, while the remaining 10 percent is held by public and institutional investors, according to BTRC data.

Malaysia’s Axiata and India’s Bharti Airtel own 61.82 percent and 28.18 percent of Robi respectively. The rest is held by general investors.Banglalink is fully owned by Dubai-based VEON. Meanwhile, state-owned Teletalk has less than 3.5 percent of the mobile subscriber market.

A YEAR-LONG DEVELOPMENT

In September 2025, the interim government approved the Telecommunications Network and Licensing Policy, limiting foreign ownership in the network access licence category, which covers mobile operators, to 85 percent.

The move effectively required at least 15 percent local ownership. Robi and Banglalink had criticised the proposal and called for the requirement to be removed.

In July 2025, the CEOs of Axiata Group, Telenor Asia and VEON wrote to the interim government, urging it to reconsider the restrictions. They warned that applying the foreign ownership limit to existing investments could hurt future investment and slow the sector’s growth.

After the policy was approved, BNP leaders called for a review.

At an event in November 2025, Amir Khosru Mahmud Chowdhury, who now heads the planning and finance ministry, said the policy needed to be reviewed to protect the interests of citizens, the country and investors.

At the same event, Jahiruddin Swapan, then a member of the BNP chairperson’s advisory council and now the prime minister’s political adviser, said the policy gave foreign investors an advantage because of their technological capabilities and left local entrepreneurs at a disadvantage.

After taking office, the BNP-led government proposed raising the local ownership requirement to 20 percent, according to industry officials familiar with the matter.

The proposal, however, faced opposition from telecom operators and Malaysian government officials, the sources said.

The Daily Star could not independently verify the claims.

The government has now settled on a 10 percent threshold in the latest draft.

Abu Nazam M Tanveer Hossain, a telecom expert, welcomed the move.

“Encouraging local ownership can deepen domestic participation in the digital economy and should be a positive long-term objective,” he said.

However, he said the requirement needed to take into account the different ownership structures of Bangladesh’s mobile operators and the sector’s heavy reliance on foreign capital.

“Any mandatory threshold must therefore be carefully calibrated. Telecom remains highly capital-intensive and dependent on sustained foreign investment,” he said.

A 10 percent requirement, he added, offers a better balance between encouraging local participation and avoiding a policy that could discourage investors.

The ousted Awami League-led government is responsible for the current energy crisis and high inflation, said Rashed Al Mahmud Titumir, adviser to the prime minister on finance and planning.
“The main causes of the energy crisis are dependence on imports, failure to conduct any gas exploration, and continuing the culture of nepotism and patronage to create an oligarchic system through plunder,” he said at a seminar yesterday at the Economic Reporters’ Forum (ERF) auditorium.

The plundering of resources during the AL regime increased the money supply without a corresponding rise in production, thereby accelerating inflation, he also said at the programme jointly organised by the ERF and the Centre for Policy Dialogue (CPD).

Stating that the recent rise in LNG prices was driven by the prolonged conflict in the Middle East, the PM’s adviser said Bangladesh might not have to bear such high costs if it had sufficient domestic gas supplies and was not dependent on imports.

He called on economists and researchers not to just criticise the policies of the AL government but to also calculate and publish the cost of “inaction”, “wrongdoing”, and siphoning of funds abroad through energy-sector corruption.

Such an assessment would show the financial burden accumulated from wrong policies or inaction, and the resulting impact on investment, employment and future generations, he said.

Titumir said the BNP government is taking actions for the energy sector that should have been done earlier.

For instance, he said the government is promoting solar power, including offering to purchase solar power.

He stated that while it will cost someone Tk 8.5 per unit to install solar power, the government will buy it at Tk 10.50 per unit from them. “Through this, we want to see electricity consumers as electricity producers.”

On inflation, the PM’s adviser said some of it stemmed from normal economic growth, but excessive pressure had come from past plunder and corruption, including irregularities in imports and exports that pumped money into circulation.

A long-term target of 5-6 percent inflation while maintaining growth was realistic for a developing economy, he said.

National Professor Mahbub Ullah, meanwhile, said a “plunder economy” had developed in Bangladesh since independence, with influential groups benefiting by redistributing existing resources rather than engaging in production, hindering investment and growth.

In the past, many infrastructure projects were funded at two or three times the necessary cost, he said, letting influential groups take a cut of project funds while pumping money into the market without a matching rise in output, fuelling inflation.

“The problem is that production or output did not increase at the same rate as these investments. As a result, the excess supply of money in the market puts pressure on inflation,” said the professor.

Such an economy had contributed to the high inflation, he said, calling for moving the economy away from a plunder-based system towards production and fairness.

Mahbub also linked money stolen from banks to inflation.

He said a portion of the funds siphoned abroad were converted into dollars or other hard currency first, leaving a large amount of local currency in the domestic market.

The national professor also spoke on the rising poverty. As per the World Bank’s latest report, the number of poor people increased by an estimated 14 lakh in Bangladesh in 2025.

Mahbub said the recent rise in poverty reflected falling real incomes, pushing people to cut non-essential consumption, a trend that could weaken demand and economic activity.
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On the low tax-to-GDP ratio, the economist said it was incorrect to assume that Bangladeshis did not pay taxes. Rather, people paid various forms of informal “taxes”.

“Extortion in the country is a form of taxation. It is a kind of tax,” he said, adding that, however, that money goes to political and influential groups rather than the state treasury.

Bringing the money that people are effectively forced to pay from the hands of informal groups into the state’s revenue system could help resolve major economic problems, he said.

Md Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said simply raising interest rates would not be enough to control inflation.

Extortion, market control, supply-chain weaknesses and the law-and-order situation also drive up prices, he said, adding that ensuring fuel supply was crucial since energy shortages were disrupting production, particularly in oil refining and sugar processing.

The government’s top priority should be keeping operating factories open, he said, while also working to reopen closed ones.

He called for the immediate reopening of coal- and furnace-oil-fired power plants to boost electricity generation, reduce gas dependence in power generation, and free up gas for factories and other priority sectors.

Fahmida Khatun, a distinguished fellow of the CPD, said there were some areas of relief in Bangladesh’s economy in the last six months, but it remained facing several challenges.

The weak contribution of the industrial sector was a major reason behind the decline in GDP growth in the January-March quarter, she said.

Both short-term and long-term solutions are needed to address the energy crisis. Structural reforms in the energy sector are therefore also necessary, she added.

Shares of Saiham Textile Mills have more than doubled in just 25 trading sessions, even as the company maintains it has no undisclosed price-sensitive information to explain the rally and despite one of its two production units remaining shut for Balancing, Modernisation, Rehabilitation and Expansion (BMRE) work.

Data from the Dhaka Stock Exchange (DSE) show that Saiham Textile shares closed at Tk18.80 on 26 July. By today (2 September), they had climbed to Tk38.20, gaining Tk19.40, or 103.19%.

The stock gained another Tk3.20, or 9.14%, today alone. A total of 7.13 million shares changed hands on the day, with trading activity also rising significantly in recent weeks.

Such an unusual movement of Shares of Saiham Textile Mills has attracted the attention of the Bangladesh Securities and Exchange Commission (BSEC).

Abul Kalam, executive director and spokesperson of the BSEC, told TBS that the regulator has taken note of the unusual price and trading volume.

"The matter has come to the BSEC's attention. We will examine why the price and trading volume are rising unusually. If any irregularities are found, action will be taken," he said.

The DSE sought an explanation from Saiham Textile on 6 August over the unusual movement in its share price and trading volume. In its response on 9 August, the company said it had no undisclosed price-sensitive information that could explain the surge.

The company had earlier given a similar response to the Chittagong Stock Exchange (CSE), denying any undisclosed price-sensitive information behind the unusual movement.

The sharp rise has come at a time when one of Saiham Textile's two production units is closed for BMRE.

The old spinning unit, established in 1993, was shut down on 1 June due to ageing machinery. According to the company, the old equipment had reduced production capacity, affected yarn quality and increased production costs.

Under the BMRE project, the company plans to sell the old machinery and install modern automated spindle machines. The factory building will also be renovated, followed by commissioning and trial production. The entire process was initially expected to take around 18 months.

Md Neyamat Ullah, company secretary of Saiham Textile, told TBS that the company had no information about the recent movement in its share price.

"We have no knowledge about the movement in the share price. There is also no undisclosed price-sensitive information at present," he said.

He added that although the shutdown was announced for around 18 months, the company was trying to complete the BMRE work earlier.

Saiham Textile has two production units. While the old spinning unit is closed, its melange unit, established through a rights share issue and commercially launched in 2013, remains operational.

Market participants said the unusual price and volume movement warrants regulatory scrutiny, particularly as one unit is closed and the company has denied having any undisclosed price-sensitive information. They said the regulator should examine whether any coordinated trading or manipulation is behind the sharp movement of the shares of Saiham Textile.

Meanwhile, the company's latest financial results do not show a major improvement that would independently explain the surge.

During July 2025-March 2026, Saiham Textile posted a net profit of around Tk4.59 crore, up about 7% from the same period a year earlier. Its earnings per share (EPS) rose to Tk0.51 from Tk0.47.

The company's net asset value (NAV) per share stood at Tk43.75 as of 30 June 2025. At Tk38.20, the stock was still trading below its NAV today.

Saiham Textile expects the BMRE project to improve production capacity and efficiency once the upgraded spinning unit resumes operations.

However, the financial benefits of the project have yet to materialise as the unit remains closed.

Against this backdrop, the 103% rise in the share price in just 25 trading sessions has raised questions among investors and market participants. The BSEC's decision to examine the unusual price and trading volume has placed the stock under closer regulatory scrutiny.

Bangladesh’s garment industry will need greater access to clean energy to remain competitive as European markets and global supply chains move towards a low-carbon future, Michael Miller, the EU ambassador and head of delegation to Bangladesh, said yesterday.

“Bangladesh has an opportunity to combine its manufacturing strength with cleaner production and position itself at the forefront of sustainable sourcing,” he said at a roundtable discussion titled “Advancing Decarbonisation for Apparel in a Changing Energy Landscape” in Dhaka, according to a press release.The event was jointly organised by HSBC Bangladesh, Apparel Impact Institute (Aii), the Embassy of Sweden in Bangladesh and the Delegation of the European Union to Bangladesh.Representatives from the government, global apparel brands, garment manufacturers, financial institutions, development partners and industry associations attended the event.

They discussed how Bangladesh can improve access to reliable and competitively priced clean energy for its apparel industry.

The sector will require $6.6 billion in investment to achieve 50 percent decarbonisation by 2030

Michael said the shift towards a low-carbon future in European markets and global supply chains would make clean energy increasingly important for Bangladesh’s garment sector.

“There is an opportunity to combine manufacturing strength with cleaner production that we encourage you to grasp with both hands, to place this country at the forefront of sustainable sourcing,” he added.

Kristina Elinder Liljas, senior director of sustainable finance and engagement at Aii, presented findings from the organisation’s research on financing the decarbonisation of Bangladesh’s apparel manufacturing sector.

The research identifies Bangladesh as one of the countries with significant potential to reduce emissions across global apparel supply chains. It also highlights the investment needed to achieve this goal.

The sector will require $6.6 billion in investment to achieve 50 percent decarbonisation by 2030, according to the research.

Md Mahbub ur Rahman, chief executive officer of HSBC Bangladesh, said, “As Bangladesh solidifies its global leadership in apparel, commercialising the energy transition is paramount. Unlocking private capital through supportive policy, scalable technology, and innovative financing will be the defining driver of future investment and competitiveness.”

The roundtable also highlighted the importance of international partnerships in supporting Bangladesh’s transition towards cleaner industrial production.

AKM Sohel, additional secretary and UN Wing chief of the Economic Relations Division at the Ministry of Finance; Olle Lundin, chargé d’affaires of the Embassy of Sweden; and Md Sarwar Hossain, deputy governor of Bangladesh Bank, also spoke at the event.

Participants said expanding access to clean energy is becoming important not only for environmental reasons but also for the competitiveness of the garment industry.

They said reliable and competitively priced renewable energy could help manufacturers reduce emissions and energy costs. It could also help them meet the expectations of international brands and markets.

Greater access to renewable energy could further help Bangladesh attract investment and strengthen its position as one of the world’s leading apparel sourcing destinations.

Randolph Brazier, global head of clean power systems and global sustainability at HSBC Holdings PLC, and Justin Wu, head of sustainability and climate change for Asia and the Middle East at HSBC, also joined the event over Zoom and presented their views on Bangladesh’s clean energy potential.

Vidya Khan, vice-president of the Bangladesh Garment Manufacturers and Exporters Association; Kim Hellström, senior sustainability manager for the Hong Kong special administrative region at H&M Group; and Olivia Windham Stewart, an independent sustainability adviser at ATTI Lead, among others, were also present.

The Bangladesh Submarine Cables PLC (BSCPLC) has ruled out any current or future shortage of international bandwidth, saying it is fully prepared to meet the country's growing demand.

In a press release issued by the Posts and Telecommunications Division on Wednesday (2 September), the state-owned company said recent reports warning of a possible bandwidth crisis and higher internet prices were misleading and did not reflect the actual situation.

The statement came in response to reports published under headlines including "Bangladesh on the brink of bandwidth crisis, major disruption feared in internet sector" and "Internet prices may rise, speed may fall amid bandwidth crisis".

"Currently there is no shortage of international bandwidth supply, nor is there any possibility of a shortage in the future," BSCPLC said.

The company said it is implementing a third trusted submarine cable system, SEA-ME-WE-6, alongside its existing SEA-ME-WE-4 and SEA-ME-WE-5 systems to meet future demand.

The two existing submarine cables have a combined capacity of around 7,200 Gbps. Of this, around 4,000 Gbps is currently being supplied to the country, while BSCPLC has the capacity to provide another 3,200 Gbps, according to the statement.

Once SEA-ME-WE-6 becomes operational in 2027, the state-owned submarine cable systems will have a combined bandwidth supply capacity of around 34,000 Gbps, the company said.

According to projections by the Bangladesh Telecommunication Regulatory Commission (BTRC), the country's total bandwidth demand is expected to reach 30,000 Gbps by 2030.

BSCPLC said the projected capacity would therefore be sufficient to meet the country's growing bandwidth demand.

Besides the submarine cable systems, bandwidth is also being imported according to demand through the country's six International Terrestrial Cable (ITC) operators.

The company also said it has already started the process of joining a fourth submarine cable system, further strengthening the country's international bandwidth capacity.

BSCPLC said it has been providing bandwidth to customers through attractive packages while continuously reducing prices, making international bandwidth more affordable.

It said bandwidth would be provided at more affordable prices as usage increases in the future.

Rejecting reports of an impending shortage or price hike, BSCPLC said such reports were "not correct" and had been disseminated deliberately.

The company urged the public and other stakeholders not to be alarmed by what it described as misleading reports.

BSCPLC also said it remained committed to protecting the country's digital sovereignty and ensuring the security of its national strategic information infrastructure.