The Bangladesh Securities and Exchange Commission (BSEC) is planning to frame a regulation to bring certain “public interest companies” to the stock market under the Securities Act, said its Chairman Masud Khan yesterday.

He made the remarks as chief guest at an open discussion on the current state of the capital market, organised by the DSE Brokers Association of Bangladesh (DBA) at the DSE’s multipurpose hall in Dhaka.

Under the Securities Act, the stock market regulator has the authority to direct any company to list in the public interest, Masud said.

He said the commission now plans to define what qualifies as a “public interest company” and frame rules under the existing provision. “Those companies falling under certain categories will have to apply.”

The move is aimed at bringing eligible companies to the market rather than relying solely on voluntary listing decisions, according to the BSEC chief.

He said the commission expects direct listing, a revamped initial public offering (IPO) process and a hybrid listing mechanism to encourage more good companies to get listed.

The direct listing regulation will be made public for feedback within days, while the IPO rules will be made public within a few months, he said.

Noting that the IPO process currently takes too long, Masud said companies are required to submit documents to both the Dhaka Stock Exchange (DSE) and the BSEC.

He explained that assessments by both agencies lead to a prolonged listing process, which can sometimes take a year to a year and a half. “This is how the patient dies.”

To address this, the BSEC is proposing an extended audit under the new IPO rules, the BSEC chief said. The audit would go beyond a conventional statutory audit, verifying whether a company’s assets, land titles, receivables and liabilities actually exist.

Under the proposed system, auditors would certify financial statements as “true and fair”, after which the DSE would not raise further questions about those statements. The exchange would instead assess whether the company’s business model is viable.

“From now on, issuing companies will submit IPO applications to DSE or Chittagong Stock Exchange and give us a copy,” Masud said. “We at BSEC will not ask any questions. All questions will go to DSE or CSE.”

He said several large companies are already showing interest in listing through direct listing.

The hybrid mechanism is also expected to be introduced within a week, he said. Under it, a company would be able to offload some shares through direct listing and some through an IPO.

Beyond listing reforms, the BSEC and DSE have taken steps to develop the bond market, including cutting trading fees, he added.

Also speaking at the event, Md Mominul Islam, chairman of the DSE, said the stock exchange had already decided to reduce bond listing fees and other fees by around 80 percent to revamp the corporate bond market.

He also said the bourse is working on returning client funds stuck at several brokerage houses.

Thousands of investors have fallen victim to embezzlement at several brokerage firms over the past five years, The Daily Star has reported previously.

Nearly a dozen brokerage houses have reportedly embezzled hundreds of crores of taka over the last few years.

Four brokerage houses -- Moshihor Securities, Banco Securities, Crest Securities and Tamha Securities -- collectively embezzled around Tk 270 crore since 2020, according to the BSEC.

Earlier in May this year, the regulator fined four firms -- NBL Securities, Gibson Securities, UCB Stock Brokerage and Khulna Printing & Packaging -- and several of their officials Tk 1.09 crore for securities law violations and fraud in the stock market.

Later in June, a BSEC probe found that brokerage firm Salta Capital had embezzled around Tk 100 crore in client funds and shares.

Several brokers at the event called for bringing good companies to the market, simplifying the listing process, and ensuring greater transparency and accountability.

They also said the exchange should not issue notices over large buy orders from a single brokerage house, but should instead examine whether brokerage houses are conducting repeated trades to influence the index.

The government’s net borrowing from the banking system stood at Tk 165,538 crore in fiscal year (FY) 2025-26, far exceeding its plan for the year amid falling foreign financing and lower-than-expected revenue collection, according to Bangladesh Bank (BB) data.

At the beginning of FY26, the government planned to borrow Tk 104,000 crore. It later revised its borrowing plan upward to Tk 118,000 crore for the year but ended up borrowing an additional Tk 47,538 crore.

At the end of June 2026, credit to the public sector grew 30 percent, while credit growth to the private sector increased by 4.47 percent, according to BB data.

Two analysts have raised the alarm, warning that increased government borrowing could crowd out loans for the private sector and undermine economic stability and its gradual recovery.

“Persistent government borrowing creates two forms of crowding out,” said Ashikur Rahman, principal economist at the Policy Research Institute (PRI) of Bangladesh.

He said the immediate pressure from high government borrowing from the banking system may appear limited because aggregate liquidity remains comfortable and private credit growth is already weak.

“However, banks have a strong incentive to invest in relatively safe government securities rather than finance productive but riskier private activity. If investment demand recovers, continued government borrowing will place upward pressure on interest rates and restrict credit, particularly for SMEs, working capital and new investment,” he said.

“It will also crowd development priorities out of the budget,” Ashik said, adding that since salaries, subsidies and interest payments are difficult to reduce, development expenditure and the quality of Annual Development Programme implementation will probably bear much of the adjustment.

“Unless revenue mobilisation improves dramatically, the government will again have to exceed its borrowing target, accumulate arrears or compress expenditure.”

The BB, in its monthly report on major economic indicators, said that in FY26 the National Board of Revenue (NBR), which collects roughly 86 percent of total annual revenue, recorded 12 percent year-on-year growth in tax collection, a significant leap from 2.23 percent growth registered the previous year.

Revenue still lagged behind expectations, reaching only 82.60 percent of the government’s target, it added.

FY26 was the 10th year in a row that the NBR missed the government’s revised annual collection target. The tax authority collected Tk 415,500 crore, falling Tk 88,000 crore short of the revised goal for the fiscal year, according to provisional data.

“Consequently, the government progressively relied more on borrowing to finance its deficit. Specifically, deficit financing was primarily sourced from domestic sources, with the banking system accounting for the major share of net domestic borrowing in FY26,” the BB report said.

Towfiqul Islam Khan, additional director, research at the Centre for Policy Dialogue (CPD), said the substantial revenue shortfall is now evident, as is the extent to which bank borrowing overshot the target.

“Together, these outcomes highlight a noteworthy absence of fiscal discipline.”

For the current FY27, the NBR has been given a target of Tk 604,000 crore to finance the Tk 938,000 crore budget. The tax target is 45 percent higher than the actual collection in FY26, and it would be highly challenging for the NBR amid a slowdown in the economy.

Of the deficit estimated at Tk 243,000 crore, the government plans to borrow Tk 127,000 crore from domestic sources, with Tk 112,000 crore coming from the banking sector.

The continued high borrowing from the banking sector, Ashik said, has created a broader concern of “a growing fiscal-monetary contradiction”.

“Bangladesh Bank cannot sustainably reduce inflation and revive productive credit while fiscal policy continues to absorb a disproportionate share of banking resources. The inflationary risk would become greater if the central bank were ultimately required to accommodate this borrowing through additional liquidity,” he warned.

MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), said the government has already stretched expenditure well beyond what its current revenue capacity can comfortably support.

“The pressure could intensify if expected foreign financing falls short, particularly as the FY27 budget appears to assume an ambitious level of external assistance.”

In FY26, net foreign financing decreased by 20 percent year-on-year, according to the BB.

In July, Bangladesh received $180 million in foreign loans, down from the amount received in the same month of the previous year. But it repaid $453 million in principal and interest to foreign creditors.

Razzaque said the government is taking on more and more spending commitments. A new pay scale, the Family Card Programme, support for business activity, help for financially troubled banks, and higher development spending will all require money.

“But revenue is not growing fast enough, there has been little serious effort to cut or rationalise spending, and foreign aid is also likely to fall short. That makes bank borrowing the easy, sometimes seemingly the only, option, but for Bangladesh now it is an option we can increasingly ill afford.”

He said crowding out has so far been masked by exceptionally weak private-sector credit demand. “With businesses borrowing and investing less, heavy government borrowing has not yet created acute competition for bank funds,” he said.

“But as economic activity strengthens and private credit demand recovers, continued high government borrowing could begin to constrain financing available to firms and raise borrowing costs.”

Bangladesh will get a small benefit in garment exports to the US as its effective final tariff rate is slightly lower than those faced by China and Vietnam, two major competitors in the global apparel supply chain.

The US on July 24 imposed a new 10 percent duty on exports from Bangladesh to the American market, citing imports of goods produced with forced labour. With that, the country’s effective tariff rate now stands at 25.6 percent.

Meanwhile, China currently faces an effective tariff of 35.6 percent on garment exports to the US, including the 7.5 percent surcharge imposed in 2020, while Vietnam faces a rate of 28.1 percent.

An effective tariff rate is the overall import duty after taking into account all applicable US tariffs and surcharges on a product.

India, Indonesia, Pakistan and Cambodia face the same 25.6 percent duty as Bangladesh, according to data from the Tariffs Tool, a resource for estimating US import duties and understanding the tariff landscape.

The tariff rates were verified by Research and Policy Integration for Development (RAPID), a research organisation based in Dhaka.

While the lower rate compared with China and Vietnam gives Bangladesh a competitive advantage, local garment exporters and economists say the benefit may be limited because the difference is not large and other factors, such as the ongoing energy crisis, are affecting production and shipments.

AK Azad, chairman of Ha-Meem Group, which ships the majority of its garments to the US, said the lower effective tariff rate could benefit Bangladesh, although the domestic energy crisis is affecting production.

Azad said that US retailers are not considering the duty but are instead asking for timely shipment of goods as production at industrial units is being affected.

“The government should resolve the energy crisis soon so that the local exporters can enjoy the benefit of lower rate to the American market,” he added.

MA Razzaque, chairman of RAPID, said that US tariff policy remains uncertain as the current US administration changes the rates frequently.

“Moreover, the difference in tariffs on Bangladesh compared with China and Vietnam is not too much. So, Bangladesh may not benefit much from the lower tariff rate compared to its key competitors in the US market,” he said.

“Overall, the tariff has been increased, and this is the fact,” he said, adding that because of the increase, US buyers would either reduce the price of garments or ask local suppliers to share part of the additional 10 percent duty imposed recently.

Razzaque said China has created some connector destinations such as Vietnam and Mexico through which it can do good business by producing garments and shipping them to the US. Bangladesh has no such connector destinations yet.

“But it is true that numerically, Bangladesh’s tariff is lower than China and Vietnam, which matters less now,” he said.

However, Inamul Haq Khan, senior vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), is hopeful that Bangladesh will benefit from the lower tariff.

Garment exports from Bangladesh to the US totalled $4.01 billion in the January-June period of this year, down 5.75 percent year-on-year, according to data from the Export Promotion Bureau.

Inamul said that although shipments to the American market are gradually rebounding recently, Bangladesh’s garment exports to the US might not increase much because of the lower rate.

He also said the energy crisis has been affecting production significantly.

Mohiuddin Rubel, founder and CEO of Bangladesh Apparel Voice, said buyers look at the total landed cost of garments rather than tariffs alone.

“The rate advantage only becomes a lasting one when we manage our capabilities better than competitors,” he said.

That means securing adequate energy, ensuring efficient port handling and keeping other costs under control, he added.

“Bangladesh also needed to shift towards non-cotton products and make use of its clean record,” he said.

India's economy grew 7.8% year-on-year in the April-June quarter of 2026, beating market expectations and the Reserve Bank of India's 7% forecast, government data showed today (31 August).

Growth in the first quarter of the 2026-27 financial year, however, moderated from a revised 8.6% in the previous quarter. Strong investment and manufacturing activity helped offset weakness in the mining sector.

The latest figures were released by India's Ministry of Statistics and Programme Implementation (MoSPI).

India's exemplary GDP growth of 7.8% during Q1 of FY 2026-27 is a herculean feat.

The collective strength of our people ensured India delivered such growth despite oil price shocks and supply chain issues in the midst of global uncertainties.

Doomsayers were doomed and India…

— Narendra Modi (@narendramodi) August 31, 2026
Gross value added (GVA), which excludes indirect taxes and subsidies, rose 8.2% during the quarter. Manufacturing grew 9.2%, while financial services expanded 12.1%, supported by strong bank credit growth.

Investment increased nearly 12%, while private consumption grew 7.1%.

The data underline the resilience of India's domestic economy despite global economic uncertainty, high energy prices and geopolitical tensions linked to the conflict in West Asia.

The pace of expansion keeps India among the world's fastest-growing major economies. Analysts have also raised their full-year growth forecasts to around 7% amid stronger investment, easing inflation and resilient domestic demand.

Prime Minister Narendra Modi described the 7.8% growth in the first quarter as a "herculean feat".

In posts on X, Modi said the performance reflected the "collective strength and resilience" of the Indian people despite oil price shocks, supply chain disruptions and global uncertainties.

In another post, he wrote: "Doomsayers were doomed and India bloomed…yet again!"

Bangladesh's international bandwidth demand and the need for new investments is rising rapidly, but delays in deciding on new submarine cable connections could create a major capacity crunch by 2028, industry stakeholders warned at a workshop today (31 August).

The country's international bandwidth use, now about 13.5 terabits per second (Tbps), is projected to reach 19.1 Tbps in 2027 and nearly 27 Tbps in 2028, according to data presented at the event.

The Telecom and Technology Reporters Network Bangladesh (TRNB) organised the workshop titled "The need for new submarine cables to protect digital sovereignty and meet future bandwidth demand", in Dhaka yesterday.

International bandwidth use has increased nearly 260-fold over the past 13 years. It rose from just 50 Gbps in 2013 to 0.76 Tbps in 2018, 1.78 Tbps in 2020, 4.2 Tbps in 2022, 6.86 Tbps in 2024 and about 13.5 Tbps in 2026.

The demand could reach 54 Tbps by 2030, 305 Tbps by 2035 and 432 Tbps by 2036, according to the projections.

Bangladesh currently relies mainly on two government-owned submarine cables, SEA-ME-WE-4 and SEA-ME-WE-5, with capacities of 4.6 Tbps and 2.5 Tbps, respectively. Part of the remaining demand is met through bandwidth imported via International Terrestrial Cable (ITC) operators.

Bangladesh also has relatively few international submarine cable connections compared with regional peers. India is connected to 19 cables, Malaysia to 23, Thailand to 12 and the Philippines to 19, while Bangladesh's main connections currently number only two.

This leaves the country vulnerable to pressure on international internet services if a cable faces faults, maintenance or other disruptions, participants said.

Although the government's third submarine cable, SEA-ME-WE-6, is expected to add capacity, further expansion will be needed in the long term. SEA-ME-WE-4 is also scheduled to reach the end of its operational life in 2030.

Industry stakeholders see approval for privately owned submarine cables as a potential solution. They estimate that proposed cables could add around 51 Tbps of capacity, taking the country's total capacity to about 67 Tbps.

Mohammad Aminul Hakim, chief executive officer of Metacore Subcom Ltd, said private submarine cables could increase competition in the international bandwidth market and reduce dependence on bandwidth imported through ITCs.

He also said the proposal could create scope for lower internet prices.

Mashiur Rahman, chief executive officer of C-Data Communications Ltd, and Mahmud Shahed, project lead at Metacore Subcom Ltd, made separate presentations on Bangladesh's submarine cable infrastructure, future bandwidth demand and the need for new investment.

Stakeholders said planning, financing, constructing and commissioning submarine cables take several years. Waiting until demand and shortages become apparent could therefore delay the availability of required capacity.

They said Bangladesh should start planning new international connections now, considering demand beyond 2030.

Business leaders have called for sector-specific action plans to help industries prepare for Bangladesh’s graduation from the least developed country (LDC) category.

They said businesses urgently need to improve productivity, skills, technology, access to finance and trade capacity to remain competitive in global markets.

They also stressed that the plans should be based on reliable data, properly implemented and regularly monitored. Greater private sector participation is also needed in government reform efforts.

The recommendations came at a discussion organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at its Motijheel office yesterday on private sector participation in LDC-related reforms and strengthening business capacity.

FBCCI Administrator Md Fazlul Hoque chaired the meeting. FBCCI Secretary General Md Alamgir presented a report on the challenges and opportunities Bangladesh may face after graduating from the LDC category.

The report warned that Bangladesh could lose preferential market access in major export destinations, including duty-free benefits under the European Union’s Generalised Scheme of Preferences (GSP) and Everything But Arms (EBA) scheme.

The pharmaceutical and other sectors may also face stricter intellectual property requirements, it said. The report called for greater private sector involvement in designing and implementing reforms to ensure a smooth transition.

TRADE SKILLS, IP RIGHTS KEY CONCERNS

Rajib H Chowdhury, senior vice-president of the Dhaka Chamber of Commerce and Industry, said Bangladesh needs stronger capacity to negotiate trade agreements and deal with emerging market-access challenges.

“We do not have enough negotiation capacity. We need to improve it,” he said.

KSM Mostafizur Rahman, president of the Bangladesh Agrochemical Manufacturers Association, said intellectual property rights would be a major challenge for several industries after graduation.

The pharmaceutical, agriculture and agro-chemical sectors could be particularly vulnerable, he said.

Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, said much of the domestic plastic industry still relies on copying existing products.

This could make intellectual property rights a major challenge for the sector after graduation, just as they are expected to be for the pharmaceutical industry, he said.

Md Munir Chowdhury, national trade expert of the Bangladesh Regional Connectivity Project-1 under the Ministry of Commerce, said businesses should clearly identify the challenges facing their respective sectors.

Ismat Zerin Khan, president of the Patuakhali Women Chamber of Commerce and Industry, said the LDC graduation strategy should also cover businesses outside Dhaka.

Fazlul Hoque urged all district chambers and sector-based associations to submit their specific recommendations to the FBCCI in writing. The federation will review the proposals and present them to policymakers, he said.

He said Bangladesh must make effective use of the additional three years to prepare for graduation.

“If we can strengthen the capacity of the private sector, our competitiveness in international markets will also improve,” he said, seeking cooperation from district chambers and sector-based associations.

Bangladesh is scheduled to graduate from the UN’s LDC category on November 24, 2026. Although the country meets all three graduation criteria, the government has sought a three-year extension until November 2029 to address economic challenges and complete reforms.
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The UN Committee for Development Policy (CDP) has backed a shorter extension, while the UN Economic and Social Council (ECOSOC) has forwarded Bangladesh’s request to the UN General Assembly, which will make the final decision before the graduation deadline.

The US Environmental Protection Agency on Monday granted small refinery exemptions worth 1.76 billion renewable fuel credits for the 2025 compliance year and said it will propose reallocating the waived obligations to larger refiners in future years, a move that could deepen divisions within the oil industry over biofuel policy.

The decision caps a week of intense lobbying by the Farm Belt and Big Oil over pending small-refinery exemption requests, pitting farmers who fear lost demand for biofuel crops against refiners seeking relief from costly blending mandates.

The exemptions were larger than expected. The EPA also plans to shift the waived obligations to produce biofuels such as ethanol from corn or sugarcane and biodiesel from oils and fats onto larger refiners in future years.

Those developments threatened to inflame tensions between the powerful energy and agriculture industries as the Trump administration seeks to lower fuel prices without alienating farm-state voters ahead of November's congressional elections.

The Renewable Fuel Standard, established by Congress, requires refiners and fuel importers to blend specified volumes of renewable fuels into the nation's transportation fuel supply or purchase credits known as renewable identification numbers, or RINs.

Small refineries can seek exemptions from those requirements if complying would cause them disproportionate economic hardship. When plants receive exemptions, the EPA can force other refiners to make up the production difference so that the overall quota of biofuel produced is met for the year.

The EPA, which administers the programme, has faced political pressure from both the refining and agricultural industries over how broadly to grant the waivers.

On Monday, the EPA said it has granted full exemptions to 18 out of 34 refineries that had sought exemptions from their Renewable Fuel Standard obligations for the 2025 compliance year. The agency has delayed 2025 compliance until 1 September and is currently seeking another extension.

The EPA statement said it granted 50% exemptions to 11 refineries, denied three petitions and determined two petitions to be ineligible.

Marathon, Chevron receive exemptions

Refineries owned by Marathon Petroleum and Chevron were among those that received exemptions, according to the EPA. The companies did not immediately respond to requests for comment.

The exemptions totalled 1.76 billion worth of renewable fuel credits, roughly double the amount the agency estimated earlier this year.

The EPA said it will propose by the end of October requiring larger refiners to produce biofuels equal to the difference between the actual and estimated volumes exempted in the 2026 and 2027 obligation years.

This would ensure the issue of how the overall production quota is met gets addressed before the November midterm elections. But the plan would remain subject to public scrutiny and a regulatory process that does not guarantee it will take effect.

Ethanol blending credits, known as RINs, rose 16% to $2.07 each as of 3:45 pm ET, up from $1.78 on Thursday, according to market data.

Biofuel trade group Growth Energy said the exemptions appeared difficult to justify given refiners' recent profits, arguing that small refineries should receive relief only when they can demonstrate "disproportionate economic hardship."

The group praised lawmakers for fighting to preserve the biofuel quotas finalised earlier this year and said it would work with EPA "to fully account for lost biofuel gallons and make producers and farmers whole."

The American Petroleum Institute, the nation's largest oil trade group, said the larger-than-expected package of exemptions undermined regulatory certainty. API CEO Mike Sommers said granting exemptions "significantly above" EPA's projection would be "a significant step backward."

API also opposed shifting the exempted obligations to larger refiners in future years.

"Both actions would inject uncertainty into the fuels marketplace," Sommers wrote, adding that "new compliance surprises" would move "in the wrong direction at precisely the wrong moment."

Farm-state lawmakers have warned that broad exemptions could depress demand for crops and undermine the biofuel industry, while refiners argue that the mandates can impose steep costs when compliance credits are expensive.

Around 10 lakh agricultural households in Bangladesh, representing nearly 50 lakh people, are projected to need emergency agricultural assistance between June and November 2026, according to the recent report of the Food and Agriculture Organization (FAO).

The number of households requiring emergency assistance has risen by 2 lakh since November 2025, FAO said in the report styled 14th round of “Monitoring Emergency Agriculture Support”. For the latest round of monitoring, FAO carried out month-long telephone interviews with 6,143 households across all 64 districts.

The report, published on 25 August, measured need in two different ways, which point to different districts.

By total number of households in need of assistance, Chattogram had the most in the country, followed by Rangpur, Dhaka and Rajshahi -- these divisions have large farming populations, so even a smaller percentage in need adds up to a bigger headcount. Rangpur is the only division that ranks high on both counts.

By share of farming households affected, Sylhet, Mymensingh and Rangpur ranked highest -- in these divisions, a larger proportion of agricultural households are in need, even though the divisions are smaller.

Needs were most acute in river-system areas, Haor basins and flash-flood hotspots, the report said, pointing to flooding and waterlogging as the monsoon season intensified.

The households in need were disproportionately resource-poor smallholders. Of the households in need, 57 percent cultivated less than one hectare of land, and 60 percent fell into the least well-off wealth bracket.

Their reliance on casual farm labour, casual off-farm labour and low-capital self-employment further limited their ability to finance production or absorb shocks, the report said.

Economic shocks affected around 84 percent of the households in need, while exposure to natural hazards reached 16 percent -- six percentage points higher than the previous round.

Financial pressure remained evident with 67 percent reporting that they had to purchase food on credit, 66 percent reporting reduced health expenditures and 30 percent reporting reduced spending on agricultural inputs, it added.

Crop producers faced mounting difficulties with inputs, plant health and marketing. Compared to the FAO 13th round observations published last November, reports of plant disease rose by 30 percentage points and difficulty accessing fertiliser rose by 17 points.

Crop sales difficulties nearly tripled, from 9 percent in the previous round to 30 percent, mainly due to low selling prices.

Crop inputs remained the top assistance priority, cited by 72 percent of households in need.

Demand for cash assistance saw the sharpest rise, up 41 percentage points from November observations to 57 percent -- which FAO linked to the combined effects of monsoon floods, food inflation and falling household incomes.

Livestock feed and veterinary services were flagged as priorities by 51 percent and 33 percent of households respectively.

The report called for a seasonally timed package combining input support, cash assistance, animal healthcare and water-management support ahead of the Aman cultivation period.

According to an assessment by the agriculture ministry, more than 2.43 lakh farmers across 43 districts suffered losses from heavy monsoon rains between July 7 and 19. More than 1.34 lakh tonnes of crops, worth around Tk 478 crore, were damaged across 24,138 hectares of farmland -- about 3 percent of the more than 8.17 lakh hectares under cultivation.

Reacting to the FAO findings, Agriculture Minister Mohammed Aminur Rashid told The Daily Star that the government is taking immediate steps to support affected farmers and strengthen the country’s agricultural resilience.

He said the ministry had responded to damaged seedbeds and crops by providing seeds, seedlings, relief materials and alternative land for seed production.

He also pointed to the introduction of BRRI dhan 118, an early-maturing rice variety meant to help farmers in Haor regions avoid losses from early flooding, which can be harvested 10-15 days sooner than conventional varieties.

The minister added that the government plans to boost domestic production of summer tomatoes and green chillies through incentives and expanded cultivation, and is working with international companies to develop processing and export opportunities for these and other value-added agricultural products.

He said the initiatives aim to protect farmers from climate-related losses while also improving incomes and building stronger agricultural markets.

Abu Saleh Md Shamim Alam Shibly, research fellow at the Centre for Policy Dialogue, said the FAO report is not just showing a humanitarian crisis.

“It also highlights how poorly the existing agricultural subsidy and social protection systems are targeting those who need support most,” he said.

“The government needs to ensure that agricultural support reaches the farmers who need it most, particularly those without secure land ownership or financial buffers,” he added.

The Bangladesh Financial Intelligence Unit (BFIU) has decided to form an inter-agency steering committee involving public and private sector stakeholders to strengthen efforts to prevent trade-based money laundering (TBML).

The decision was taken at a meeting organised by the BFIU on Sunday with representatives of relevant government agencies and 15 scheduled banks, according to a press release.

The proposed committee will identify TBML risks, improve information sharing and inter-agency coordination, and support investigations into suspected cases.

Representatives of the BFIU, Bangladesh Bank's Foreign Exchange Policy Department and Foreign Exchange Operation Department, the National Board of Revenue's Central Intelligence Cell and Customs Intelligence and Investigation Directorate, several customs houses, the Criminal Investigation Department, Anti-Corruption Commission and 15 scheduled banks attended the meeting.

Participants shared their experiences and discussed existing challenges, emerging risks and measures needed to curb TBML. They observed that TBML techniques are becoming increasingly complex and evolving continuously, underscoring the need for coordinated action, effective information-sharing mechanisms and stronger risk-analysis frameworks.

The meeting stressed closer cooperation among regulatory and law enforcement agencies, scheduled banks, customs authorities and other private-sector stakeholders, alongside institution-specific monitoring.

The proposed steering committee will review existing risks and challenges, assess ongoing measures, strengthen information-sharing mechanisms and determine future actions. It will also hold regular meetings to review the activities of relevant agencies and provide necessary guidance, the BFIU said.

The financial intelligence agency expects the committee to improve the identification of potential TBML activities, monitoring of suspicious transactions, analysis of relevant information and coordination of investigations.

Factory activity in China contracted in August for a second straight month, official data showed Monday, as soft demand weighs on the world's second-largest economy.

Leaders in Beijing are seeking to maintain pace despite hurdles including trade frictions with Washington and an entrenched property-sector crisis that has spooked consumers.

The manufacturing purchasing managers' index (PMI) came in at 49.8 in August, according to the National Bureau of Statistics, slightly below the 50 mark separating expansion from contraction.

Still, the reading was higher than the 49.5 forecast in a Bloomberg survey of economists, and an improvement on the 49.2 recorded in July.

NBS statistician Huo Lihui said in a statement it showed an "expansion in both production and market demand in the manufacturing sector".

Certain sectors saw "weak market activity", Huo added, including steel production and chemical materials.

The non-manufacturing PMI, which measures activity in other areas including services and construction, came in at 49.0, the data showed.

That was unchanged from July but missed the Bloomberg forecast of 49.4.

Huo noted "weak" activity in wholesale, retail and capital market services in August, which were all "below the critical point".

"The rise of commodity prices may have benefited some firms in the upstream manufacturing sector, as both input and output price indexes rose last month," wrote Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.

"But this is driven by supply rather than demand," he added.

China's economy has been supported by a historic boom in exports that has shown no sign of stopping in recent months.

It has also been helped by the global artificial-intelligence frenzy that has increased demand for its tech products.

With storm clouds building elsewhere, economists argue that Beijing needs to shift towards a model powered more by household consumption than traditional growth drivers including infrastructure investment and property.

Customers of Sammilito Islami Bank can withdraw the full amount held in their fixed deposit receipts (FDRs) at once, but they will not receive any profit if they do so. FDR account holders must remain under the Bank Resolution Scheme to receive profits.

Meanwhile, depositors with current and savings accounts will be able to withdraw their principal amount in full at once, along with the applicable profit.

The Banking Regulation Department of Bangladesh Bank issued a circular on the matter today (31 August).
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Sammilito Islami Bank is set to begin returning the principal deposits of individual customers from 7 September. Initially, customers will be allowed to withdraw or encash their entire principal amount in a single transaction. However, they will not receive any profit in this case. The bank's branches will start accepting applications for this from today.

According to Bangladesh Bank's announcement, normal transactions for individual customers are scheduled to resume from today.

However, several days are needed to complete preparations, including sending cash requisitions to branches and sub-branches, ensuring the supply of cash from Bangladesh Bank and establishing secure cash-management arrangements. As a result, the bank has decided to begin the full-scale return of depositors' funds from 7 September.

Bangladesh Bank (BB) has extended until September 30 the deadline for affected business entities to apply for policy support for restructuring their operations and financial obligations.

The Banking Regulation and Policy Department (BRPD) of the central bank issued a circular to the managing directors and chief executives of all scheduled banks on Monday, outlining updated guidelines to ensure the effective implementation of its debt-restructuring framework.

Under the updated guidelines, borrowers who previously received policy support through the "Selection Committee for Policy Support for Business and Financial Restructuring" are also eligible to submit fresh applications to their respective banks by September 30.

As per the circular, for single entities or groups with total outstanding loan balances of Tk 1,000 crore or more, special rescheduling can be approved for up to 15 years, including a maximum grace period of two years based on banker-customer relations.

In cases of special restructuring, banks may extend the existing tenure by up to an additional four years beyond the timeframe specified in BRPD Circular No. 16/2022.

For borrowers with total outstanding debts under Tk 1,000 crore, the tenure and conditions outlined in the original BRPD Circular No. 07/2025 will remain applicable.

Borrowers who previously received benefits under BRPD Circular No. 07/2025 or via the Selection Committee can avail themselves of the expanded facility. Any grace period already enjoyed will be adjusted against the permitted timeline.

Unclassified loans (STD-0, 1, 2, and SMA) as of September 30, 2026, will qualify for special restructuring, while adversely classified loans (Sub-Standard, Doubtful, and Bad/Loss) will be eligible for special rescheduling. Banks must finalise all applications upon receiving the required down payments by December 31, 2026.

The central bank stated that these revised instructions take effect immediately.

The National Board of Revenue has exempted businesses and companies with annual turnover of up to Tk2 crore from minimum turnover tax, easing a tax burden that applies regardless of profitability.

NBR issued an order in this regard today (31 August) with effect immediately.

Under the revised structure, businesses with annual turnover of up to Tk2 crore will pay no minimum turnover tax. Those with turnover above Tk2 crore and up to Tk4 crore will pay a minimum tax of 0.50%, while businesses with turnover above Tk4 crore will continue to pay 1%.
Previously, a 1% minimum turnover tax was imposed regardless of whether a business made a profit or incurred a loss.

The business community has welcomed the move while calling for further reform of the system.

The Federation of Bangladesh Chambers of Commerce and Industry sent a letter to the finance minister on 24 August, urging the government to gradually move away from the 1% minimum turnover tax imposed on businesses and companies.

Md Fazlul Hoque, administrator of the business body, recently told TBS that taxation should ultimately be based on actual income, urging the abolition of the minimum turnover tax system in favour of taxation based on actual profits.

Until FY25, most companies, with some exceptions, were subject to a minimum turnover tax of 0.60% of annual turnover. Non-company businesses with annual turnover above Tk4 crore were subject to a 0.25% minimum turnover tax.

The 2025 budget raised the minimum turnover tax rate to 1% for both categories, raising concerns among businesses with low profit margins and loss-making firms, which were required to pay tax despite having no profits.

The latest exemption is expected to provide some relief to smaller businesses, NBR officials hope.

The government is approaching Muslim-majority countries and Islamic institutions to find a strategic partner for Sammilito Islami Bank, formed by merging five troubled private banks plagued by irregularities and corruption during the Awami League government.

Qatar has already been approached to invest in the state-owned bank. During his recent visit to Qatar, Prime Minister's Adviser on Finance and Planning Rashed Al Mahmud Titumir formally proposed that the country become a strategic partner of Sammilito Islami Bank.

"We have already proposed that Qatar become a strategic partner. Discussions were held there, but nothing has been finalised yet," Titumir told The Business Standard.

"Further discussions will take place with Qatar, and we will also approach other Muslim countries and organisations to become strategic partners of Sammilito Islami Bank," he said.

Titumir said the government had cancelled its earlier decision to impose a "haircut" on depositors and decided to repay their deposits in full.

"There are two ways to repay depositors – providing money from the treasury or bringing a foreign country or organisation into the bank's ownership as a strategic partner," he said. "The government is therefore seeking strategic investors from Muslim countries"

A strategic partner in a bank typically contributes to long-term growth, technology upgrades and business expansion, while playing an active role in management and decision-making.

Such partners can also strengthen a bank's capital base through substantial long-term funding or equity investment and provide financial support during crises.

FDR account holders must remain under scheme to receive profits

The Banking Regulation Department of Bangladesh Bank in a circular yesterday (31 August) said customers of Sammilito Islami Bank can withdraw the full amount held in their fixed deposit receipts (FDRs) at once, but they will not receive any profit if they do so.

FDR account holders must remain under the Bank Resolution Scheme to receive profits.

Meanwhile, depositors with current and savings accounts will be able to withdraw their principal amount in full at once, along with the applicable profit.

Sammilito Islami Bank is set to begin returning the principal deposits of individual customers from 7 September. Initially, customers will be allowed to withdraw or encash their entire principal amount in a single transaction. However, they will not receive any profit in this case. The bank's branches will start accepting applications for this from today.

According to Bangladesh Bank's announcement, normal transactions for individual customers are scheduled to resume from today.

However, several days are needed to complete preparations, including sending cash requisitions to branches and sub-branches, ensuring the supply of cash from Bangladesh Bank and establishing secure cash-management arrangements. As a result, the bank has decided to begin the full-scale return of depositors' funds from 7 September.

Sammilito Bank's status

Sammilito Islami Bank was formed by merging First Security Islami Bank, Social Islami Bank, Global Islami Bank and Union Bank, all of which were controlled by the S Alam Group.

The fifth bank, Exim Bank, was controlled by businessman Nazrul Islam Mazumder, who was considered close to the Awami League.

The five banks had struggled to return depositors' money amid severe financial distress. The interim government subsequently merged them into a single state-owned bank.

According to Bangladesh Bank data, the merged banks have around 76 lakh depositors with deposits totalling Tk1,42,000 crore. Individual depositors hold around Tk15,000 crore in savings accounts.

Of the five banks' combined loans of Tk1,92,000 crore, around 86% are now classified as non-performing, while their capital shortfall exceeds Tk150,000 crore.

The state-owned Sammilito Islami Bank began operations in November last year. It has authorised capital of Tk40,000 crore and paid-up capital of Tk35,000 crore.

The government has provided Tk20,000 crore of the paid-up capital, while the remaining Tk15,000 crore is to be issued as shares to depositors.

The dollar inched lower on Monday, but remained near a roughly two-week high, as markets ramped up bets on a rate hike after hawkish remarks from Federal Reserve Chair Kevin Warsh and renewed Gulf tensions, while the yen traded near the closely watched 160-per-dollar level.

The US central bank will “have work to do” if policymakers do not get the confidence they need that inflation is heading down to 2 percent, Warsh said on Friday, in his clearest indication yet that further tightening may be needed to curb price pressure. The comments fuelled bets on a September rate hike.

Markets raised the implied probability of a move next month to 58 percent, while yields on interest-rate-sensitive 2-year US Treasury notes held just below a more than one-month high.

“Warsh’s prepared remarks seemed designed to lift rate-hike expectations, rebalance the September debate towards the hawks and rebuild his inflation-fighting credibility,” Elwin de Groot, head of macro strategy at Rabobank, said.

“Warsh delivered an important signal: the Fed is not relying on tighter financial conditions alone and remains willing to tighten further if underlying inflation stalls,” he added.

Investors are now turning their focus to upcoming US data, particularly Friday’s nonfarm payrolls report and next week’s consumer inflation figures, both of which could shape expectations ahead of the September Fed meeting.

The euro edged up roughly 0.11 percent to $1.1597, while sterling inched higher to $1.3543. Both currencies remained on track for their second consecutive monthly gains.

The dollar index , which measures the US currency against six major peers, was down 0.11 percent to 99.53 after hitting 99.73 on Friday, its strongest since August 17.

Even so, the index was still on track for a second consecutive monthly decline, as US Treasury bond-buyback plans earlier in the month revived debasement trades.

Elsewhere, renewed tensions in the Gulf drove oil prices higher, with Brent crude futures last up 2.5 percent on the day to $90.21 a barrel. US forces struck Iran’s Larak Island on Sunday, marking the first known American strikes on Iran since late July.

US President Donald Trump said in a social media post that Iran’s energy hub of Kharg Island is being “blown to smithereens” although there was no evidence that the island was under attack.

The government has kept retail prices of diesel, octane, petrol and kerosene unchanged for September, according to a notification issued today (31 August).

Under the existing pricing structure, diesel will continue to sell at Tk115 per litre, octane at Tk145, petrol at Tk140 and kerosene at Tk135.

The Energy and Mineral Resources Division said the prices approved by the authorities will remain effective throughout September, starting from 1 September.

The current prices were set through a notification issued by the division on 31 May 2026.

The latest decision was taken following a proposal from Bangladesh Petroleum Corporation (BPC) submitted on 25 August.

The National Board of Revenue (NBR) has exempted businesses and companies with annual turnover of up to Tk 2 crore from minimum turnover tax, easing a tax burden that applies regardless of whether a business makes a profit.

The tax authority issued a notification yesterday introducing a revised structure for the minimum turnover tax.

Under the new arrangement, businesses and companies with annual turnover of up to Tk 2 crore will not have to pay the minimum turnover tax.

Those with annual turnover above Tk 2 crore and up to Tk 4 crore will pay the tax at a rate of 0.5 percent, while businesses and companies with turnover above Tk 4 crore will continue to pay the existing 1 percent minimum turnover tax.

The move is expected to provide relief to small businesses, particularly those operating on thin profit margins, as the minimum turnover tax is payable even when a business reports little or no profit.

The revised threshold is also aimed at reducing the tax burden on smaller businesses and encouraging compliance among firms with relatively low turnover.

As Bangladesh prepares to graduate from the least developed country (LDC) category, private-sector leaders have demanded detailed, sector-specific action plans for SMEs, agriculture, pharmaceuticals and other key industries, rather than broad and generic reform pledges.

Speaking at a consultation organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in the capital today (31 August), business leaders warned that plans alone mean little without disciplined implementation and continuous monitoring to ensure real outcomes.

Chaired by FBCCI Administrator Md Fazlul Hoque, the meeting also called for stronger entrepreneurial capacity, skills development, greater investment in research and innovation, wider technology adoption, affordable financing, and upgraded logistics, along with an uninterrupted energy supply, all of which business leaders say are essential for industries to remain competitive once LDC-related trade benefits expire.
At the beginning of the meeting, FBCCI Secretary General Md Almgir presented a report on the challenges and opportunities associated with Bangladesh's LDC graduation.

The report noted that Bangladesh is expected to lose duty-free market access and trade preferences such as the Generalised Scheme of Preferences (GSP) and Everything But Arms (EBA) in the European market, one of its major export destinations, following graduation.

Stricter intellectual property rights (IPR) regulations will also pose challenges to several industries, including the pharmaceutical sector, the report said.

Against this backdrop, the report stressed the importance of ensuring private-sector participation in the government's reform initiatives.

During the open discussion, private-sector entrepreneurs said the benefits of LDC graduation would not materialise unless the action plans were realistic and implementable.

They proposed collecting accurate data and information from the grassroots level to identify the priority needs of different sectors and formulate strategies accordingly.

Dhaka Chamber of Commerce and Industry (DCCI) Senior Vice President Rajib H Chowdhury said Bangladesh lacks sufficient negotiation capacity and needs to strengthen it.

"Bangladesh's negotiation capacity needs to be enhanced. At the same time, the National Single Window must be made fully operational," he said.

Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, said a large portion of the country's plastic industry produces copycat products.

After LDC graduation, intellectual property issues would become a major challenge for the sector, much like the pharmaceutical industry, he said.

He called for urgent government-private sector action plans to protect industries such as plastics, light engineering and cottage, micro, small and medium enterprises.

Ismat Jarin Khan, president of the Patuakhali Women Chamber of Commerce and Industry, urged the FBCCI to ensure that strategies for sustainable LDC graduation do not remain focused only on industries based in Dhaka.

She also called for easy-term loans, skills development and logistics support for women entrepreneurs at the grassroots level.

K S M Mostafizur Rahman, president of the Bangladesh Agro-Chemical Manufacturers Association (BAMA), said Bangladesh would face major challenges regarding intellectual property rights after LDC graduation.

The pharmaceutical, agriculture and agro-chemical sectors would be among those affected, he said, urging the government to expedite the registration of products manufactured in Bangladesh that fall under patent protection.

Attending the meeting Md Munir Chowdhury, national trade expert of the Bangladesh Regional Connectivity Project-1 under the Ministry of Commerce, said private-sector stakeholders must clearly identify the challenges facing their respective sectors.

He suggested forming councils involving the government and private sector to address those challenges and adopting results-based action plans.

At the meeting, FBCCI Administrator Md Fazlul Hoque urged all district chambers and sector-based associations to submit their specific proposals in writing to the FBCCI, so that these could be analysed and placed before policymakers, and said that the additional three years Bangladesh had received must be utilised properly.

He added that if the private sector's capacity could be enhanced, the country's competitiveness in international markets would also increase, and sought cooperation from all district chambers and sector-based associations to this end.

Former FBCCI Administrator Md Hafizur Rahman, International Trade Expert of the Support to Sustainable Graduation Project Nesar Ahmed, members of FBCCI's support committees, former FBCCI directors, FBCCI Secretary General Md Almgir, BGMEA Director Sheikh Hossain Mohammad Mustafiz, BKMEA Vice President Mohammad Rashed, BJMA Chairman Abul Hossain, BTMA Director Sajid Ishraq, Bangladesh Women Chamber of Commerce and Industry President Sangeeta Ahmed, Bangladesh Jute Diversified Products Manufacturers and Exporters Association President Md Rashedul Karim Munna, and leaders of various chambers and associations also attended the meeting. Representatives from the Ministry of Commerce, Ministry of Industries, Bangladesh Standards and Testing Institution (BSTI) and ICT Division were also present.

The cabinet has approved the National Pay Scale 2026, with basic salaries of government employees set to be implemented in three phases between 1 July 2026 and 1 July 2027, while various allowances will take effect simultaneously from 1 January 2028.

The weekly cabinet meeting, with Prime Minister Tarique Rahman in the chair, began at the Secretariat around 5:30pm, according to a press release issued by the Prime Minister's Office.

The new pay scale will retain the existing 20 grades for government employees. The minimum starting basic salary for Grade 20 has been set at Tk20,000, while the maximum prescribed salary for Grade 1 will be Tk1,56,000.

The government said the new structure was approved after considering its financial capacity, the overall economic situation, inflation, the cost of living and the need for a balanced and rational pay structure.

Under the new scale, the ratio between the salaries of the lowest and highest grades will be reduced from the existing 1:1.945 to 1:1.78.

As a result, the starting basic salary for the lowest grade will increase by 142%, while the prescribed salary for the highest grade will increase by 100%.

Basic pay to be implemented in three phases

Although the National Pay Scale 2026 will be effective from 1 July 2026, the government has decided against implementing the entire pay structure at once because of its financial implications and potential impact on overall inflation.

The basic salaries will be implemented in three phases between 1 July 2026 and 1 July 2027 across the 2026–27 and 2027–28 fiscal years.

Employees in Grades 10 to 20 will be given priority in implementation, considering their relatively lower incomes.

The government has also decided to introduce all allowances simultaneously from 1 January 2028.

The same phased approach will apply to increases in net pensions.

Lower pensioners to get higher increases

The government has postponed full implementation of the "One Rank One Pension" (OROP) system until 2030.

According to the Finance Ministry, full implementation at present would involve substantial financial costs, while the government lacks data on civilian employees who retired before 2019.

As an interim measure, the government has approved slab-based increases in net pensions, with lower-paid pensioners receiving higher percentage increases.

Under the new formula, net pensions of Tk9,000 or less will increase by 100%, while those between Tk9,001 and Tk20,000 will rise by 75%. Pensions ranging from Tk20,001 to Tk30,000 will increase by 65%, those between Tk30,001 and Tk40,000 by 60%, and pensions of Tk40,001 or more by 55%.

The government said the measure will particularly benefit pensioners who retired many years ago and currently receive relatively low net pensions.

Mobile allowance expanded to all grades

The government has also decided to expand mobile allowance coverage to employees across all 20 grades.

Previously, the allowance was available only to employees up to Grade 5. The expansion takes into account the growing use of internet and digital communication in government offices.

Tk3,000 allowance for children with disabilities

For the first time, the government will introduce a monthly allowance for government employees with children with special needs.

An employee will receive Tk3,000 per month for each child with special needs.

Around 33 lakh people to benefit

The new pay scale is expected to benefit around 24 lakh military and civilian employees, as well as more than 9 lakh retired employees and other eligible beneficiaries.

The government estimates that implementation will require an additional annual expenditure of around Tk1,05,580 crore. The required funds have been earmarked in the budgets for the relevant fiscal years under the Medium-Term Budget Framework.

Meanwhile, a separate committee has been formed for the judicial service. Based on its recommendations, a separate Bangladesh Judicial Service pay scale will be approved and implemented in phases from 1 July 2026 in line with the National Pay Scale 2026.

The Finance Division will issue the necessary gazettes, orders and instructions to implement the new pay scale, detailing the procedures for salary fixation, allowances, pensions and other post-retirement benefits.

The government said phased implementation would help ease pressure on inflation while improving the financial security and motivation of government employees and contributing to a more efficient and people-oriented public administration.

John Ternus takes over as Apple’s chief executive on Tuesday, inheriting a company that towers over the smartphone market but trails its rivals in artificial intelligence.

One of his biggest challenges will be balancing the company’s dependence on China while parrying acute political pressure from the White House.

The handover ends Tim Cook’s 15-year run, replacing the operations specialist who built Apple’s supply chain with the engineer who built its hardware.

Ternus, 51, joined Apple’s design team in 2001 and worked his way up to senior vice president of hardware engineering, reporting to Cook.

He leads the engineering teams behind Apple’s entire product lineup, including the iPhones that generate most of the company’s revenue.

He gets barely a week to settle in, with Apple holding its annual iPhone event on September 9, where it is expected to unveil its first foldable handset.

“Tim Cook left the house in phenomenal order,” said Dan Ives, partner and senior managing director at investment firm Yorkville Ives & Co.

“But now it’s about Ternus defining the AI chapter.”

Ives expects the new chief executive to lean into what he knows.

“There’s no reason to fix what’s already working,” he said, predicting Ternus will concentrate on hardware innovation while leaving Cook’s supply chain intact.

Some analysts had argued software chief Craig Federighi was the more logical pick for a company scrambling to catch up on AI.

Carolina Milanesi, an analyst at Creative Strategies, said that misreads how consumers actually adopt technology.

“Consumers are still buying hardware first, and it’s going to be like that for a long time,” she said. “You’re not going to discover the value of AI if you’re not interested in the hardware.”

Ternus earned a bachelor’s degree in mechanical engineering from the University of Pennsylvania and worked as an engineer at Virtual Research Systems before joining Apple.

Inside the company he is credited with driving a push to make products more durable, reliable and resilient, and with design work that cut their carbon footprint.

The harder question is what kind of leader he becomes.

“Even people that know him now don’t know him as a CEO,” Milanesi said.

“You might know him as the head of engineering, but once you’re CEO, things change. Your responsibility is bigger, your power is bigger. You’re dancing a different kind of dance.”

Nowhere is that gap wider than in the geopolitical role Cook excelled at, courting both Beijing and Donald Trump’s White House to protect a supply chain that runs largely through China.

Apple’s manufacturing operation is among the most complex in corporate history, a web of hundreds of suppliers and assembly lines that Cook painstakingly built over decades.

Cook in recent years began shifting some of the work elsewhere -- iPhone assembly to India, other production to Vietnam -- but the diversification has been gradual with China, one of Apple’s biggest consumer markets, still anchoring the system.

Complicating matters, Trump has repeatedly demanded Apple build iPhones on American soil, threatening tariffs on those made overseas.

Cook avoided the heaviest blows of Trump’s trade war by cultivating the president directly, making US investment commitments and political donations -- all while also keeping Beijing onside.

The tricky political terrain will be new for Ternus.

“He knows Apple Park like the back of his pocket in terms of hardware,” Ives said of Ternus. “But on the global stage -- that’s probably one of the biggest areas where he’s going to have to learn on the job.”

Cook is not going far. He becomes executive chairman of Apple’s board on the same day, with a mandate the company has said includes engaging policymakers around the world.

“That was really clever,” said Milanesi, arguing the arrangement frees Ternus from a role Cook has handled alone for years.

The September 9 iPhone event will be the first public measure of the handover.

A foldable iPhone would be the most significant redesign in years, and Ternus will be its face -- eight days into the job.

“This is a moment that they created for him,” Milanesi said.