Overall gas supply across Bangladesh is expected to increase substantially in September amid re-gasification of increased volumes of imported liquefied natural gas (LNG) with both the floating terminals in full-steam operation.

"At least eight LNG cargoes will be imported in September, mostly from spot LNG suppliers and short-term contracted companies," a senior official of state-run Petrobangla told The Financial Express on Saturday.

Average LNG re-gasification in the country's two operational floating storage and regasification units (FSRUs) is expected to be around 750 million cubic feet per day (mmcfd) with the daily re-gasification ranging from 700mmcfd to 800 mmcfd, he said about the good news amid prolonged fuel outcry.

Of the eight LNG cargoes confirmed for delivery in September, Gunvor Singapore Pte Ltd will deliver two cargoes under its long-term deal with Petrobangla, Aramco Trading Singapore Pte Ltd will supply another two -- one from spot market and another under a short-term supply deal.

Posco International Corporation and TotalEnergies Gas & Power Ltd will deliver two LNG cargoes from spot market.

If the contracted firms under direct-purchase method (DPM) supplies LNG in line with their commitments, overall LNG re-gasification will increase further, he said.

The official said overall LNG re-gasification would be much higher in September compared to August when the LNG re-gasification fell as low as to around 190mmcfd.

An abrupt accident in US Excelerate Energy's FSRU on the Bay of Bengal left the floating LNG terminal idle at least for 15 days from late July to mid-August, dragging down the country's overall gas supply.

Delivery of at least two spot LNG cargoes was affected due to abrupt shutdown of the FSRU at deep sea in Moheshkhali.

The cargoes of Gunvor Singapore Pte Ltd and TotalEnergies Gas & Power Ltd could not be delivered to the accident-ridden FSRU and had to remain stranded in the Bay of Bengal for a couple of weeks.

Rough seas, dearth in LNG supply along with the influx of a faulty LNG cargo also contributed to the squeezing of the country's overall LNG re-gasification during August.

Although the accident-ridden FSRU, owned by Excelerate, resumed partial operation on August 6, the rough weather over the Bay of Bengal had forced the LNG cargoes away from floating LNG terminals on safety grounds after the first week of August.

Excelerate Energy's FSRU -- Excellence -- also had run out of LNG following the refusal to receive LNG via ship- to-ship transfer from a moss-type LNG cargo -- Al Haamra -- supplied by Aramco Trading Singapore Ltd on safety issue during middle of August.

The significant decline in LNG re-gasification had pushed the government to divert some gas to power plants from industries as part of rationing.

The disruptions had cut gas supply to the national grid significantly, reducing gas pressure in many areas, disrupting industrial production, squeezing generation in gas-fired power plants.

Long queues of vehicles in front of CNG (compressed natural gas) filling stations across the country had been a regular scene.

The disruptions had intensified gas shortages in Dhaka and other parts of Bangladesh, where many households have been left with little or no gas for cooking for much of the day.

In some areas, supplies have stopped altogether, while factories in key industrial zones have reportedly been forced to scale down production because of low gas pressure.

Sources said the government was grappling to arrange LNG cargoes due to restricted contractual supplies because of the Middle East war and Strait-of- Hormuz supply disruptions before the abrupt operational closure of one of its two FSRUs on July 21.

Non-delivery of several scheduled LNG cargoes awarded under the DPM method also contributed to the abrupt shortage of LNG for regasification, prompting the government to buy spot LNG cargoes within a very short span of time in late August to meet exigencies.

"We are now well-prepared to keep the country's overall LNG re-gasification to around 750 mmcfd on average in September after having experiences of unforeseen accident, 'incapable' DPM contractors and 'faulty' LNG cargo," said a senior official of state-run Rupantarita Prakritik Gas Company Ltd (RPGCL).

High cost of LNG on the spot market, however, has emerged as a major challenge, he said.

"Comparatively cool temperature in September might ease the country's overall energy demand in the coming month," he hopes.

RPGCL is a part of state-owned Bangladesh Oil, Gas and Mineral Corporation, also known as Petrobangla, and is responsible for LNG trading in the country.

Bangladesh's overall natural gas supply as of August 28 was around 2,360mmcfd against a known demand for around 4,000mmcfd, according to official Petrobangla data.

Government-linked foundations have committed to creating more than one crore employment opportunities over the next five years, with Palli Karma-Sahayak Foundation (PKSF) alone pledging one crore, Finance and Planning Adviser Rashed Al Mahmud Titumir said.

"Another foundation had pledged 1,00,000 jobs, while women's development organisations, the Small Farmers Foundation and institutions working on poverty reduction had also submitted large-scale employment plans," he said after a meeting with heads of 22 foundations under different ministries and divisions at the NEC Conference Room in Sher-e-Bangla Nagar today (29 August).

"That means the number is more than one crore," he said. "The government did not impose these employment targets; the foundations proposed them voluntarily based on their own capacities."

The Implementation Monitoring and Evaluation Division (IMED) will regularly track implementation of the pledges, with progress data to be published on a dashboard, he said.

The government didn't impose these employment targets; the foundations proposed them voluntarily based on their own capacities.

Rashed Al Mahmud Titumir Finance and Planning Adviser
The meeting also decided to bring the foundations under a cluster-based structure aligned with the government's Five-Year Strategic Framework for Reform and Development, while allowing each institution to continue working under its own mandate.

Titumir said one of the priorities is a nationwide "One Village, One Product" programme aimed at expanding production and employment by using local resources, skills and traditions to develop specialised products in different areas.

The broader five-year strategy, approved by the prime minister under the "Bangladesh First" approach, focuses on recovery, transition and restructuring towards prosperity, he said.

Solar, health and social protection

Another priority is to turn electricity consumers into producers through renewable energy.

Titumir said the government has set a target of generating 5GW of solar power over five years, while the foundations have already committed to contributing 2GW.

More than 300 pending net-metering applications have been settled and around 200MW of solar power has reached the grid over the past six months, he said.

A Tk2,000 crore allocation will support solar projects through Idcol and BIFFL. Producers will contribute 20% of project financing, aggregators such as PKSF partner NGOs another 20%, and the remaining 60% will come through government lending, potentially bringing borrowing costs down to 6-7%, Titumir said.

In health, the government plans to move towards 150-bed upazila facilities from the existing 50-bed capacity.

Titumir said foundations would help train nurses, technicians and other workers for specialised services, including kidney dialysis and coronary care, as disease patterns shift from communicable to lifestyle-related illnesses.

The meeting also decided to move towards a universal life-cycle social protection programme, including registration of persons with disabilities, expansion of services and integration of zakat as an alternative financing source.

Investment and economic reforms

Titumir said Bangladesh Bank has arranged a Tk20,000 crore fund to help reopen closed factories and increase private-sector credit, with discussions under way to raise the amount to Tk37,000 crore.

Agreements have been signed with 40 banks, with disbursement expected to begin in September. The government will support the interest-rate differential to make financing easier for entrepreneurs, he said.

He said stalled economic-zone projects that had failed to begin operations even after eight to 10 years are now targeting production within 18 months.

Five priorities have been identified for investors: a stable tax structure for five years, time-bound approvals through a "trace and track" system, easier access to financing, energy security and seamless connectivity.

Rail and logistics reforms will also seek to address shortages of locomotives and coaches and dual-gauge constraints to reduce freight time and costs, Titumir said.

He also said an independent forensic audit of Bangladesh Bureau of Statistics data, particularly national income accounts, had begun to examine possible inconsistencies in past figures.

The five-year strategy targets raising the revenue-to-GDP ratio to 10% by 2030 and 15% by 2035.

"We have no targets that are not achievable," Titumir said, adding that the government aims to increase productive investment and turn Bangladesh into a regional manufacturing hub.

He said confidence in the economy was returning and domestic and foreign investment had begun to increase, with early signs of change visible in electricity, industry, social protection and poverty reduction.

Surplus liquidity in Bangladesh’s banking sector has risen 39.40 per cent in a year as deposit growth outpaces weak credit demand.

The excess stood at Tk 4.08 trillion at the end of June, up from Tk 2.93 trillion in the same month last year, according to the latest Bangladesh Bank data.

It increased by Tk 712.28 billion, or 21.14 per cent, from May, when the surplus stood at Tk 3.37 trillion.

Overall liquidity in the banking sector grew 26.47 per cent over the year to Tk 7.42 trillion in June, from Tk 5.86 trillion a year earlier.

Banks were required to maintain Tk 3.27 trillion under cash reserve ratio and statutory liquidity ratio rules. Bangladesh Bank put excess liquidity at Tk 4.08 trillion.

Of the total liquidity, Tk 168 billion was held in foreign currency.

With private-sector credit demand weak, commercial banks are parking part of their surplus funds in Bangladesh Bank’s Standing Deposit Facility, or SDF.

Banks placed around Tk 1.5 trillion in the facility in June, a record for the sector, despite its 7.50 per cent interest rate being well below the call money rate.

The liquidity glut is unevenly distributed, however.

Some banks still rely on the call money market, interbank repos and Bangladesh Bank’s repo facility to meet short-term funding needs and manage daily operations.

Such borrowing rose from Tk 2.66 trillion in June 2025 to Tk 2.93 trillion in December before reaching Tk 3.97 trillion this June.

Mutual Trust Bank Managing Director Syed Mahbubur Rahman said shrinking investment opportunities could turn the growing liquidity surplus into a major challenge for banks.

Banks still have to pay interest to depositors even when they earn relatively little from idle funds, he said.

Shahjalal Islami Bank Managing Director Mosleh Uddin Ahmed said weak loan demand was swelling banks’ uninvested funds and could push lending rates below inflation.

He also pointed to the industrial fuel crisis as a factor behind the slowdown in credit growth.

Bangladesh Bank data shows private-sector credit growth fell to 4.53 per cent in June, while deposit growth stood at 10.74 per cent.

The Bangladesh Securities and Exchange Commission (BSEC) has approved a seven-year subordinated bond worth Tk400 crore aimed at strengthening the issuer's capital base.

The bond will be issued through private placement to corporate entities, high-net-worth individuals, banks and financial institutions, provident and gratuity funds, and insurance companies.

The approval came at a commission meeting held today (25 August) at BSEC's headquarters in Agargaon, presided over by BSEC Chairman Masud Khan.

According to a press release, the bond is non-convertible, unsecured, fully redeemable, and carries a floating rate. Its coupon rate will be determined based on the reference rate plus a 3% margin, while the face value per unit has been set at Tk50 lakh.

The proceeds raised from the issue will be utilised by Meghna Bank to bolster its Tier-II capital base under the Basel III regulatory framework.

DBH Finance PLC will act as the trustee for the bond, while BRAC EPL Investments Limited will serve as the issue manager.

Meghna Bank, a fourth-generation bank, commenced its operations in 2013. According to its annual report, the bank posted a profit after tax of Tk5.38 crore in 2025, a significant decline from Tk50.45 crore in 2024.

Its consolidated profit and loss account showed net interest income turning negative by Tk124.93 crore, as interest paid against deposits and borrowings increased.

The bank paid Tk955 crore in interest against deposits and borrowings in 2025, up from Tk716 crore in 2024, the report showed. Meanwhile, its interest income on investments surged to Tk830.38 crore, up from Tk685.55 crore in 2024.

The Import Policy Order 2026–2029 includes provisions for free trade zones and central bonded warehouses, with the government aiming to strengthen Bangladesh's potential as a regional hub for trade, logistics and re-export.

The new policy, gazetted by the Ministry of Commerce yesterday (24 August), also seeks to improve the storage and supply of raw materials for export-oriented industries.

Unlike the 2021–2024 order, which provided bond facilities and other benefits for export-oriented industries, the new order explicitly includes central bonded warehouses as part of the country's trade and logistics infrastructure.
Although the Import Policy Order 2021–2024 expired on 30 June 2024, it remained in effect until the issuance of the new order.

The introduction of free trade zones (FTZs) will mark a major shift in Bangladesh's export strategy, industrial development and investment facilitation efforts.

The initiative is expected to help reduce supply chain delays, lower production costs and strengthen Bangladesh's position as a regional trade and logistics hub as the country prepares for graduation from least developed country (LDC) status.

City Bank PLC has withdrawn its proposal to increase the maximum number of non-independent directors from eight to 10, while retaining its plan to raise authorised capital to Tk3,000 crore.

The decision was taken at a board meeting on Monday after the board reviewed the legal, regulatory, governance, shareholder, contractual and other implications of the proposals approved earlier this month, according to a price-sensitive disclosure filed with the Dhaka bourse today (25 August).

The bank will no longer place the proposal to increase the maximum number of directors, excluding independent directors, from eight to 10 at its upcoming Extraordinary General Meeting (EGM).

The proposal has been withdrawn from the EGM agenda and kept open for consideration at an appropriate time, the bank said.

City Bank had initially approved the board expansion proposal at its 13 August meeting. The bank currently has seven shareholder directors and two independent directors.

Tk3,000cr capital plan retained

The proposal to increase the bank's authorised capital by 50% to Tk3,000 crore from Tk2,000 crore will remain on the EGM agenda.

The increased authorised capital will comprise 300 crore ordinary shares of Tk10 each, compared with the existing 200 crore shares.

The proposal, along with amendments to the relevant provisions of the bank's Memorandum and Articles of Association, remains subject to shareholder, regulatory and statutory approvals.

The EGM will be held online on 4 October at 3pm. The record date has been set for 6 September.

Capital headroom amid dividend rules

The capital expansion comes as banks prepare to comply with Bangladesh Bank's new dividend requirements.

Under a central bank circular issued on 23 May, commercial banks with paid-up capital below Tk2,000 crore will not be allowed to declare cash dividends from 31 December 2026.

City Bank currently has paid-up capital of Tk1,749.40 crore, leaving it Tk250 crore short of the threshold.

By increasing authorised capital, the bank will create additional room to raise paid-up capital through future rights or bonus shares.

For 2025, City Bank declared a 15% cash dividend and a 15% stock dividend.

Earnings remain strong

The capital plan comes amid a strong growth in the bank's profitability. Consolidated profit increased from Tk478 crore in 2022 to Tk1,324 crore in 2025.

In the first half of 2026, the bank posted consolidated profit of Tk527 crore.

City Bank shares closed at Tk30.40 on the Dhaka bourse today, giving the bank a market capitalisation of around Tk5,318 crore.

Sammilito Islami Bank will allow individual depositors to withdraw their principal amounts from certain deposit accounts as needed from September 1, Bangladesh Bank Governor Md Mostaqur Rahman instructed the bank’s top officials yesterday.

He gave the instruction when Kazi Shairul Hasan, chairman, and Abedur Rahman Sikder, managing director of the bank, met him at the central bank, according to a press release.
He also asked the bank to inform depositors that there will be no haircut on their profits, as confusion over the issue persists despite the finance minister’s announcement in parliament. Depositors are already being refunded under the scheme announced on December 29, 2025, the press release said.

From September 1, depositors can withdraw principal amounts from Al-Wadiyah current accounts, Mudaraba savings accounts, and Mudaraba term deposits as needed, beyond the limits set under existing instructions.

The governor also instructed the bank, which started operations with Tk 35,000 crore in capital as the country’s largest and only state-owned Islamic bank, to resume all normal banking operations as soon as possible.

Deputy Governors Md Habibur Rahman, Md Kabir Ahmed, Md Sarwar Hossain and Md Anisur Rahman were also present at the meeting.

Bangladesh's net readymade garment (RMG) export earnings rebounded strongly in the fourth quarter of FY26, rising 10.38% quarter-on-quarter, driven by higher knitwear exports.

Bangladesh Bank's latest Quarterly Review of Readymade Garments shows net RMG exports stood at $6.23 billion in April-June, compared with $5.64 billion in January-March. On a year-on-year basis, net earnings rose 20% from $5.17 billion in the same quarter of FY25.

Gross RMG export earnings also increased 9.79% quarter-on-quarter to $10.10 billion in the fourth quarter from $9.20 billion. The figure was 10.78% higher than a year earlier.

Knitwear exports rose 19.21% quarter-on-quarter to $5.50 billion from $4.61 billion, while woven garment exports increased only 0.31% to $4.60 billion from $4.58 billion. The strong performance in knitwear helped the sector recover from a relatively weak third quarter.

Bangladesh's merchandise exports also rebounded sharply in June, rising nearly 26% year-on-year to $4.20 billion. However, the late surge was insufficient to prevent a slight decline in overall export earnings in FY26.

Exporters said sharp June growth partly to a low base. Exports were weaker in June last year because of extended Eid-ul-Adha holidays, while most Eid holidays fell in May this year.

Despite the quarterly recovery, exporters remain concerned about energy and power shortages, which could weigh on apparel shipments in the coming months.

Pressures ahead

Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said besides energy shortages, high interest rates and weaknesses in logistics, Bangladesh will face further challenges because of the free trade agreements between the European Union and India and Vietnam.

"However, if the domestic challenges can be addressed, the country's exports will perform better in the new fiscal year than in the previous one," he added.

Gas shortages have already severely disrupted textile production, industry insiders said, despite recent government assurances of improved supply.

Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), said more than 900 of its over 1,800 member mills are shut due to gas supply disruptions.

"Not only textile mills, but also gas-dependent steel, paper, particle board and ceramic industries are facing severe production disruptions due to the prolonged gas crisis," he said.

Higher value addition

The RMG sector imported $3.87 billion worth of raw materials in the fourth quarter, including cotton, synthetic and viscose fibres, yarn, fabrics and garment accessories.

These imports accounted for 38.32% of total RMG export earnings, resulting in a value addition of 61.68%, slightly higher than 61.35% in the previous quarter.

For the full fiscal year, however, the sector's performance remained subdued. Total RMG export earnings reached $38.97 billion in FY26, up only 0.96% from the previous fiscal year.

The sector contributed 7.82% to Bangladesh's nominal GDP during FY26, highlighting its continued importance to the economy and external trade.

The United States, Germany, the United Kingdom, Spain, France, the Netherlands, Italy, Canada and Belgium remained the major destinations for Bangladeshi apparel. They accounted for $7.24 billion, or 71.69% of total RMG export earnings in the fourth quarter.

The government and Bangladesh Bank have introduced several measures to support the sector amid rising production costs and global uncertainty. These include the Pre-shipment Credit Refinancing Scheme, Tk50 billion revolving Green Transformation Fund, Tk100 billion Export Facilitation Pre-finance Fund, and Export Development Fund.

The Bangladesh Bank said the near-term outlook for apparel exports remains moderately positive, supported by potential recovery in demand and improvements in compliance.

Bangladesh's transition towards renewable and low-carbon energy in the apparel sector must prioritise workers' job security, skills development, social protection, and rights, speakers said at a multi-stakeholder dialogue in Chattogram today (25 August).

They called for a worker-centred policy framework for a just energy transition, saying industrial modernisation and green technologies should not come at the cost of employment.

The dialogue, titled "Improving Policy Arrangements for Just Energy Transition (JET) in Bangladesh's Apparel Sector from a Labour Perspective", was held at Hotel Saint Martin in the port city.
The National Alliance for Just Transition Bangladesh (NAJTB), Bangladesh Labour Foundation (BLF), and Manusher Jonno Foundation (MJF), with support from Oxfam Bangladesh, jointly organised the event.

Speaking at the event, AKM Ashraf Uddin, executive director of BLF and secretary of NAJTB, said workers must remain at the centre of the energy transition, with adequate social protection, reskilling opportunities, and worker-focused planning.

Dr Masud Kamal, professor of sociology at the Chittagong University, said the energy transition was not merely a technological process but also a socio-technical transformation.

He stressed the need for distributive justice so that workers do not bear the costs of decarbonisation alone.

Md Zubaer Alam, programme officer at BLF, called for translating just transition principles into concrete policies through institutional accountability and coordination among government agencies, trade unions, civil society, and regulators.

Jamir Uddin, director of the Department of Environment, Chattogram Region, said environmental compliance and renewable energy adoption must go hand in hand with worker reskilling and social protection.

Mohammad Mahabubul Hasan, deputy inspector general of the Department of Inspection for Factories and Establishments, Chattogram, stressed regular social dialogue, regulatory oversight and worker safety during industrial and technological transitions.

During a panel discussion, Md Hafij Ahmed Mozumder, director of the Divisional Labour Office, Chattogram, said vulnerable workers needed to be retrained and reskilled to prevent structural unemployment.

Kazi Md Shafiqul Islam Titu, chairman of the Standing Committee on Religious Affairs at Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said workforce development must progress alongside green infrastructure.

Sheikh Abdul Mannan, president of both the Chattogram Chapter of IndustriAll Bangladesh Council (IBC) and the Bangladesh Garment Textile Leather Workers Federation (BGTLWF), warned that modernisation should not become an excuse for job cuts and called for training workers in green technologies.

Md Ali Shahin, head of Advocacy at Young Power in Social Action (YPSA), called for local vulnerability mapping and a dedicated Just Transition Fund for marginalised workers.

Rezoanul Haque Azom, senior officer at Bangladesh Institute of Labour Studies (BILS) and joint secretary of NAJTB, said a one-size-fits-all approach would not work and called for sector-specific assessments in Chattogram.

Speaking at the discussion, The Business Standard's Senior Correspondent Mizanur Rahman Yousuf said, "We cannot have a green factory infrastructure while keeping workers in the dark. Transition roadmaps must reflect ground realities."

Participants called for tripartite dialogue, meaningful worker participation, reskilling, social protection, employment security, occupational safety, and trade union rights in the transition process.

They also said lessons from the apparel sector should inform just-transition plans for other sectors, including shipbreaking, leather, transport, agriculture, fisheries, and waste management.

The organisers called for a national policy framework integrating climate and energy goals with decent work, social protection, skills development, collective bargaining, and meaningful worker participation.

Sri Lanka is seeking international bids for offshore oil and gas exploration, authorities announced Tuesday, more than a decade after an Indian firm abandoned commercial drilling citing high costs.

The island nation said it was offering four offshore blocks covering about 34,000 square kilometres (13,127 square miles) in the Indian Ocean for exploration, development and commercial production.
Sri Lanka, which imports all of its crude oil needs, has seen its fuel import bill increase as much as five-fold since the Middle East war began in February.Announcing the offshore tenders, Energy Minister Anura Karunathilaka said bidding would remain open until early next year.“We believe that the time has come to move forward with great determination and a clear sense of purpose,” Karunathilaka told a news conference in the capital Colombo.

Sri Lanka had previously offered offshore blocks to India and China but with little commercial success.

Karunathilaka said technology had evolved over the past decade to make deep-sea drilling affordable, expressing his hope that the country would be able to attract investors.

“The government of Sri Lanka is committed to ensuring that exploration and development of offshore resources are undertaken responsibly, transparently and in a manner that creates long‑term value,” said the minister.

Interest in Sri Lanka’s Mannar basin was boosted after Cairn India, through a local subsidiary, drilled four wells between 2011 and 2013 and reported gas discoveries in two of them.

But the company exited in 2015, saying extraction from deposits lying about 4.3 kilometres (14,000 feet) beneath the seabed was not commercially viable.

Neil de Silva, head of Sri Lanka’s Petroleum Development Authority, said the cost of drilling a deep offshore well had remained at about $40 million, but the technology to extract oil and gas had become efficient.

Prospective bidders would also be given access to detailed seismic, geological and geophysical data gathered over several decades, he added.

Sri Lanka’s “conservative estimate” of gas deposits was about nine trillion cubic feet, and that of oil two billion barrels, de Silva said.

Russian firms carried out the first drilling in the region in 1971 without any breakthrough, and the government subsequently abandoned the search until Norwegian firms helped with seismic studies about two decades ago.

The spread between banks’ weighted average lending and deposit rates remained unchanged at 5.70 per cent in June 2026 from the previous month, according to the Bangladesh Bank data released on Tuesday.

The all-bank weighted average deposit rate stood at 6.16 per cent in June, while the lending rate was 11.86 per cent.

The central bank, seeking to keep borrowing costs at reasonable levels across the economy, particularly for productive sectors, instructed banks to cap the spread between weighted average lending and deposit rates at 4.0 percentage points, excluding credit cards and consumer loans, effective from June 29.

Bankers, however, said the new ceiling was unlikely to be achieved immediately as many banks were forced to procure funds at relatively high costs.

They also said the cap could discourage banks from expanding lending to small and medium-sized enterprises (SMEs), despite the fact that the central bank and the government were urging to fund SMEs.

SME funding is believed to be risky, where regular monitoring is required with adequate working forces.

"Actually, the regulation is not scientific because some banks procure funds at a higher cost while others can raise funds more cheaply," a senior banker told the FE, requesting anonymity.

"Imposing a uniform spread across lenders could have unintended consequences, particularly for banks that rely on relatively expensive deposits to fund their loan portfolios."

The issue should instead be left to market forces, which would determine appropriate deposit and lending rates, he said.

Well-managed banks could attract deposits at lower costs, while weaker lenders would often have to offer higher rates to mobilise funds, the banker added.

Meanwhile, the spread between the weighted average deposit and lending rates of non-bank financial institutions (NBFIs) stood at 3.61 per cent in June.

The weighted average deposit rate was 10.14 per cent in the NBFIs, compared with a lending rate of 13.75 per cent.

GBB Power has stepped into the renewable energy business with a 25-year deal, under which it will develop a 5.005-megawatt ground-mounted solar plant at Cumilla Cantonment.

With the deal, the company has steered its business in a different direction after its operations had remained suspended for a long time.

The company said in a stock exchange filing on Monday that its subsidiary, Solaron Power, had signed the agreement with the Station Headquarters, Cumilla Cantonment, under the 33rd Infantry Division of the Bangladesh Army.

Under the agreement, the plant will be installed, owned and operated by Solaron Power before being transferred under the agreed arrangement.

GBB Power holds a 70 per cent stake in Solaron Power, while the remaining 30 per cent is owned by strategic partners with expertise in the solar energy sector.

The total investment in the project is expected to be around Tk 60 million, with commercial operation targeted for the first half of 2027, subject to the completion of the necessary development and installation work.

The project marks an important diversification move for GBB Power, which has remained non-operational for more than three years following the expiry of the power purchase agreement for its gas-fired plant.

The company has remained shut since June 2023, as its power purchase agreement with the Bangladesh Power Development Board (BPDB) expired. It is currently among the 36 non-operational listed companies on the stock market.

Industry insiders said the relatively modest investment requirement and the duration of the deal could give GBB Power an opportunity to build a recurring revenue stream from the project once commercial operation begins.

The move also comes at a time when Bangladesh is placing greater emphasis on renewable energy amid concerns over energy security, rising fuel costs and the need to diversify power sources.

Ground-mounted solar projects are increasingly being considered by industries, institutions and other large consumers as an alternative source of electricity, particularly to reduce dependence on the national grid and fossil-fuel-based generation.

In January this year, a consortium of Fiber@Home and GBB Power also signed a PPA with the BPDB to develop an 18MW solar power plant in Chattogram. The project is expected to start supplying electricity within the next two years.

Daily turnover on the Dhaka Stock Exchange has plunged 58% in just 15 trading days, falling by Tk704 crore from Tk1,211 crore on 4 August to Tk507 crore today (25 August), as weak fresh fund inflows, investor caution and concerns over the economy weigh on market activity.

Turnover stood at Tk507 crore today, compared with Tk1,211 crore 15 trading sessions earlier. The decline of Tk704 crore represents a 58.13% drop in daily market activity.

Against this backdrop, the DSE benchmark index DSEX fell 3 points to 5,640 today.

The DS30 index declined 5 points to 2,126, while the DSES index fell 3 points to 1,127.

A total of 391 companies and mutual funds traded on the day. Of them, 175 declined, 152 advanced and 64 remained unchanged.

Market insiders said the sharp contraction in turnover reflects a combination of weak liquidity, limited inflow of fresh money, the recent market correction, heightened regulatory scrutiny and growing uncertainty among investors.

They said the market had earlier rallied strongly, with the DSEX rising from around 5,200 points to nearly 5,900 points. The subsequent correction prompted some investors to book profits, while others have adopted a wait-and-see approach amid uncertainty over the market's near-term direction.

As a result, buying pressure has weakened, while investors are becoming increasingly selective about deploying fresh funds.

Fresh money flow remains weak

Market insiders said the most immediate concern for the market is the lack of fresh or net new money.

Much of the current trading activity is being generated by existing investors' funds. With limited new money entering the market, the capacity to absorb selling pressure has weakened significantly.

They said this is particularly important because a market rally requires sustained fresh liquidity. Without new funds, even fundamentally sound stocks can struggle to attract sufficient buying interest.

The sharp fall in turnover over just 15 trading sessions is therefore being viewed as a sign of weakening market liquidity rather than simply a decline in share prices.

Gas and power crisis deepen investor concerns

The nationwide gas and electricity crisis is adding to the pressure on investor sentiment, market insider said.

EBL Securities, in its daily market commentary, said persistent concerns over the market's near-term trajectory amid the gas and electricity crisis continued to weigh on investor sentiment and limit the prospects for a recovery.

The brokerage said the DSE witnessed volatile, see-saw trading throughout the session. Bargain hunters dominated through the middle of the session, but intensified broad-based selling in the final hour wiped out earlier gains, leaving the benchmark index marginally lower.

Market insiders said the energy crisis is also raising concerns over the earnings prospects of production-oriented listed companies.

Many factories are operating below normal capacity because of inadequate gas and electricity supplies. This could affect production, sales and profitability, particularly in sectors such as textiles, ceramics, plastics and other manufacturing industries.

As a result, investors are becoming more cautious about buying shares based on future earnings expectations.

Regulatory scrutiny adds to investor caution

Increased regulatory activity has also contributed to the cautious mood, market insider said.

The DSE is investigating the activities of several listed companies, while the Bangladesh Securities and Exchange Commission (BSEC) has decided to strengthen spot inspections.

Recent administrative actions against officials of the BSEC and DSE have also generated mixed reactions among investors.

Market insiders said stronger regulatory oversight should improve transparency and accountability over the long term. However, in the short term, the heightened scrutiny has encouraged investors to take a more cautious approach.

UCB rights shares

The market could also face additional liquidity pressure from the issuance of United Commercial Bank (UCB) rights shares, market insider said.

The BSEC recently approved the bank's Tk775 crore rights issue. Market insiders said some existing investors may have withdrawn funds from the secondary market to subscribe to the rights shares.

At a time when fresh fund inflows are already weak, raising money for a large rights issue could prompt some investors to sell existing holdings, they said.

This could create additional selling pressure in the secondary market and further constrain liquidity in the short term, they said.

Recovery depends on fresh liquidity

Despite the sharp fall in turnover, market insiders do not necessarily see the current weakness as a long-term trend.

They said investor interest could gradually return to fundamentally strong and relatively undervalued companies once market uncertainty eases and fresh liquidity begins to enter.

A realistic margin loan framework could also encourage greater participation by institutional and active investors, potentially bringing new funds into the market and strengthening buying pressure.

For now, however, the steep decline in turnover from Tk1,211 crore to Tk507 crore in just 15 trading sessions highlights the extent to which liquidity and investor confidence have weakened in the market.

Textile stocks accounted for the largest share of today's turnover at 25.3%, followed by banks at 13.7% and general insurance at 10.1%.

Fuel stocks posted the highest gain, rising 0.6%, followed by paper at 0.4% and cement at 0.3%.

Ceramic stocks recorded the steepest correction, falling 0.8%, followed by jute at 0.6% and life insurance at 0.5%.

The Chattogram Stock Exchange also closed in negative territory. The CSCX index fell 49.9 points, while the CASPI, the all-share price index, declined 93.9 points.

The share of 5G-enabled handsets on Bangladesh’s three major mobile networks rose from 5.74 percent in August 2025 to 8.29 percent in July 2026, showing that consumers are steadily moving towards next-generation smartphones despite limited 5G availability.

Grameenphone, Robi and Banglalink had a combined 14.68 million 5G-capable handsets on their networks in July, up 45.6 percent, or nearly 4.6 million, from 10.08 million in August last year, according to Bangladesh Telecommunication Regulatory Commission (BTRC) data compiled from the operators.
The growth far exceeded the 0.7 percent increase in total handsets, which rose from 175.75 million to 177.02 million over the 11 months. This suggests that most of the growth in 5G devices came from consumers replacing older phones rather than from a significant increase in the overall number of handsets.

However, the figures do not represent unique physical devices. Operators count handsets separately on their networks, meaning the same phone may be counted more than once if it uses SIM cards from different operators. Industry people said many users keep multiple SIMs for better call rates, data offers and network coverage.

Bangladesh’s 5G moment: promise, challenges, and the road ahead
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Bangladesh’s 5G moment: promise, challenges, and the road ahead

Smartphones, including 3G, 4G and 5G devices, accounted for 65.15 percent of handsets in July, up from 62.68 percent in August last year. The share of feature phones fell from 37.32 percent to 34.85 percent.

Globally, 5G adoption is accelerating, with subscriptions reaching 3.1 billion in the first quarter of 2026, according to Ericsson. Bangladesh remains far behind mature 5G markets, but the rising number of compatible devices indicates that consumers are preparing for wider adoption.

Of Bangladesh’s four mobile operators, only Robi and Grameenphone commercially launched 5G on September 1, 2025. Neither has disclosed the number of customers using 5G or the number of sites upgraded for the technology.

ROBI LEADS IN 5G READINESS

Grameenphone had the largest number of 5G-capable handsets, at 6.19 million in July, up 44.3 percent from 4.29 million in August last year.

Tanveer Mohammad, chief corporate affairs officer of Grameenphone, said the operator has launched 5G services across all divisional headquarters, but “the wider 5G ecosystem in Bangladesh -- including device availability, practical use cases and industry readiness -- is still developing.”

He said a stronger and more reliable 4G network would help drive 5G demand. Grameenphone has also started deploying its 700 MHz spectrum to improve network quality, indoor coverage and nationwide reach.

“Looking ahead, we see significant potential for 5G not only in consumer services but also in enterprise and industrial applications,” he said, adding that the company would expand coverage as the ecosystem and demand grow.

Robi, meanwhile, had the highest share of 5G-capable handsets. It had 5.74 million such devices in July, up 46.9 percent from 3.91 million 11 months earlier, the fastest growth among the three operators.

As a result, 10.06 percent of Robi’s handsets were 5G-capable, compared with 7.53 percent at Grameenphone and 7.29 percent at Banglalink.

Shahed Alam, chief corporate and regulatory affairs officer of Robi Axiata, said Robi is carrying the highest volume of 5G traffic in the market as more customers adopt 5G devices.

“We aim to provide 5G coverage wherever there is sufficient demand and a meaningful number of 5G-enabled devices connected to our network. In many locations, we already have blanket 5G coverage, with speeds exceeding 100 Mbps,” he said.

Shahed said Robi’s focus was not simply on expanding coverage but on developing practical uses for 5G beyond social media and video streaming.

“We believe the real value of 5G lies in developing meaningful use cases beyond simply browsing social media or streaming videos,” he said, adding that the technology could create new digital experiences, businesses and services for consumers and the economy.

He also said Robi wants local innovators, developers and entrepreneurs to use 5G to develop solutions for local needs, creating an ecosystem where 5G is “not just a faster network, but a platform for innovation and new possibilities.”
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How does 5G work, and why should we care?
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How does 5G work, and why should we care?

Banglalink had 2.75 million 5G-capable handsets in July, up 46.1 percent from 1.88 million in August last year.

Taimur Rahman, chief corporate and regulatory affairs officer of Banglalink, said the operator would consider launching 5G if spectrum prices are significantly reduced during the renewal process in November.

He said a successful rollout would also require lower spectrum prices, investor-friendly policies and regulations, and greater network sharing.

“Bangladesh cannot sustain some of the world’s highest spectrum prices and telecom taxes while having one of the world’s lowest ARPUs (average revenue per user),” he said.

“As 5G deployment requires significant investment, these issues must be addressed to ensure quality and affordability,” he added.

Banglalink plans to launch 5G initially in areas with high demand and a large concentration of 5G-capable devices. It also plans to explore enterprise solutions based on the technology as part of its initial rollout strategy.

The government is preparing for a change in how it plans, spends, taxes and measures its economy. From fiscal year 2028-29, the country will move from the July-June fiscal year to an April-March cycle, with FY2027-28 becoming a nine-month transition period. Bangladesh has struggled to implement its development budget on time. In FY2025-26, only 67.52 percent of the revised ADP allocation was utilised, the lowest implementation rate in the past five years.

The logic behind the change in the fiscal year is to finish major infrastructure work before the monsoon instead of pushing contractors to build roads, bridges and public facilities during heavy rain, which adds to costs. An April fiscal year could create a better operating rhythm. Plan in April, procure early, execute through the dry months and finish before the next major monsoon. But can this shift be treated as an economic reform? A new fiscal calendar can improve the timing of growth, but it cannot create growth unless institutions, businesses and markets are ready to use that time better.
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The biggest catch will be the nine-month transition year in FY2027-28. The first stress test will be managing an unusual financial year for government, banks and businesses. Budgets, revenue targets, government procurement, depreciation schedules, financial reporting, loan covenants, tax calculations, corporate strategies and targets must be replanned. Revenue collection could be sensitive. NBR collected Tk 360,642 crore during July-May of FY2025-26 and remained Tk 81,442 crore below its target for those 11 months. A compressed transition year could intensify pressure on revenue collection if targets are not redesigned prudently.

For corporates, the biggest risk is comparability. A nine-month year consisting of three quarters cannot be directly compared with a normal 12-month year having four quarters. Sales, profit, tax, loan growth, working capital and employee performance may appear artificially higher or lower, making confusion costly. Banks and financial institutions will need to reinterpret annual goals, loan renewals, covenant testing, costing budgets, revenue targets, provisioning cycles and customer cash-flow assessments. The transition is happening at a time when private-sector credit growth has already fallen to historically low levels. SMEs dependent on government contracts may feel the impact more.

Entrepreneurs and investors, foreign and local, may postpone investment during the transition because they may not confidently forecast demand, taxation and government spending. That would be dangerous when Bangladesh is already struggling to revive private investment. From the government side, project timing may change during the transition year. Procurement and public-service expenditure could become uneven. Salary, subsidy, social safety-net and development spending schedules may need fine-tuning or sudden adjustment. Businesses may also revise prices, hiring plans and investment decisions.

These issues matter because inflation is still high. Average inflation fell to 8.68 percent in FY26 from 10.03 percent in FY25, but remained above 8 percent for the fourth consecutive year. Bangladesh cannot afford prolonged weakness in investment and employment. IMF data put FY25 real GDP growth at around 3.8 percent, after 7.1 percent growth only three years earlier.

The solution is not to reject the reform. It is to build thoughtful safeguards around it. Bangladesh needs to measure success differently. The success of the new fiscal year should not be judged by how smoothly the government closes its accounts. It should be judged by how rapidly roads are constructed, how efficiently businesses invest, how many jobs are created and how much private capital is mobilised. The question is no longer whether Bangladesh should change its fiscal year. It is whether Bangladesh is prepared to change the way it creates real economic growth for the nation.

Bangladesh’s economy showed signs of gradual stabilisation during the April-June quarter of FY26, although overall economic activity remained subdued, said the Metropolitan Chamber of Commerce and Industry (MCCI) in its review.

“Inflation remained the major concern,” the MCCI said in the review released yesterday.The leading trade body said the country’s economic growth for FY26 was provisionally estimated at 4.14 percent, up from 3.49 percent in FY25. Inflation, however, remained elevated, continuing to put pressure on household purchasing power and the cost of living.The external sector performed relatively well, supported by strong remittance inflows and improved foreign exchange reserves.Remittances remained robust during the quarter, while reserves strengthened significantly by the end of June, providing greater stability for the balance of payments and the foreign exchange market, the MCCI said.

Yet, there were some challenges.

“Export growth remained weak despite a rebound in June, while private investment, credit growth and domestic demand were constrained by high interest rates and economic uncertainty. The banking sector also remained under pressure, alongside fiscal constraints and elevated inflation,” it said.

“Overall, the quarter reflected a transition from macroeconomic adjustment towards gradual recovery, with improved external sector resilience being a key positive development,” said the MCCI.

The trade body said data on the sectoral performance of the economy was yet to be available.

Third-quarter (January-March) data for FY26 released by the Bangladesh Bureau of Statistics (BBS) showed that the industrial sector suffered a 0.28 percent contraction during the period as businesses remained cautious about fresh investment amid tight liquidity, elevated borrowing costs and persistent macroeconomic uncertainties.Within the sector, the manufacturing sub-sector registered negative growth of 0.34 percent in the same period, against 1.13 percent in the previous quarter, according to the BBS.

The MCCI said merchandise export earnings rebounded strongly in June 2026, the last month of the fiscal year, rising by 25 percent year-on-year to $4.19 billion from $3.35 billion.

However, total export earnings for FY26 stood at $48.38 billion, a marginal increase of 0.17 percent from $48.30 billion in FY25, falling short of the government’s target of $55 billion by 12 percent, largely due to weak global demand, high energy costs and inflationary pressures.

The inflow of remittances in FY26 reached a record $35.59 billion, a 17 percent rise over the previous fiscal year.

The trade body, citing experts, said Bangladeshi expatriate workers sent increased amounts of money home through official channels, while the banking regulator’s steps to ease money transfers and monitor informal channels also helped.

On the investment climate, the MCCI, citing Balance of Payments data from Bangladesh Bank, said net inflows of foreign direct investment (FDI) in FY26 decreased by 15 percent year-on-year to $1.46 billion from $1.72 billion a year ago.

It said FDI inflows in Bangladesh is low compared with that in many other countries at a similar level of development, even though the low labour costs available here are generally believed to be attractive to foreign investors.

The MCCI said foreign investors hesitate to make fresh investments in the country because of underdeveloped infrastructure, a shortage of energy and weak transmission infrastructure, a lack of consistency in policy and regulatory frameworks, a scarcity of industrial land, corruption, and non-transparent and uneven application of rules and regulations.

“The government needs to address these impediments to attract more FDI to the country to ensure the country’s economic development.”

Outlook
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For the current quarter, the chamber, representing large companies, said exports, imports and remittances may increase. Foreign exchange reserves may decrease between July and September due to import payments to Asian Clearing Union (ACU) member countries.

Inflation, however, is likely to go down in September of FY27 after a spike in August, it said, projecting an 8.65 percent increase in consumer prices on a point-to-point basis this month and an 8.45 percent increase in September.

“After the general election, the economy is trying to overcome the difficulties due to the present political uncertainty and conflicting world scenario. Therefore, the performance of the selected economic indicators is mixed,” it said.

Going forward, the MCCI said sustaining price stability, strengthening the financial sector, promoting private investment and exports, and maintaining external-sector stability will be critical for achieving stronger and more inclusive economic growth.

“The policy priority going forward is therefore to consolidate external sector stability while bringing inflation down and creating conditions for stronger private investment and sustainable growth.”

Unilever is betting that shedding food assets and focusing on beauty, personal care and home products will close a valuation gap with more focused rivals.

The challenge is convincing investors that a simpler company can deliver higher returns.
The maker of Dove soap, Axe deodorant and Cif cleaning products trades at 11.5 times enterprise value to core earnings, according to LSEG data.That compares with 14.8 for Procter & Gamble, 17.5 for L’Oreal and 22.7 for Coca-Cola. Those multiples suggest investors place a premium on more focused consumer goods companies. But investors have two main concerns.Unilever’s deal in March to merge its food business with US spice maker McCormick will leave the British group with an almost 10 percent stake in the combined company, and its shareholders with a roughly 55 percent stake.

At the same time, the transaction reduces Unilever’s exposure to a relatively high-margin business, increasing pressure on management to show that faster-growing beauty, personal care and home products can make up the difference.

“Until you show me the evidence that you’re turning this around, you’re sitting on a very low multiple,” said Dan Hanbury, a portfolio manager at Ninety One, a major investor in Colgate-Palmolive, Unilever and L’Oreal.

The market is wary of “false dawns” from corporate turnarounds, he added, saying Unilever probably needed three or four quarters of strong volume growth to win over doubters.

Big industrial companies from General Electric to Siemens have spent years simplifying their structures in an effort to eliminate what investors call a conglomerate discount, a penalty applied to companies whose complexity is seen as weighing on efficiency and growth.

That thinking has increasingly spread to consumer goods companies.

Where diversification was once seen as a strength that could cushion changes in consumer tastes, investors now increasingly favour category leaders that can focus investment, innovation and marketing on a narrower set of products.

Under CEO Fernando Fernandez, Unilever has accelerated its retreat from food.

The company spun off its ice cream business and in March struck a roughly $65 billion deal to combine its food division with McCormick. The issue is not that food is unprofitable.

The business has historically generated attractive margins, but growth has lagged Unilever’s beauty and personal care operations.

“Being focused on a single category allows you to be more cost effective and more innovative,” said Akeel Sachak, global head of consumer at Rothschild & Co.

Investors often point to Procter & Gamble as a template.

The Tide detergent maker exited food and streamlined its brand portfolio, subsequently delivering stronger growth and earning a valuation premium for much of the following decade.

“P&G pulled off the restructuring, drove higher growth and commanded a relatively higher premium for probably 10 years,” Hanbury said.

Investors and analysts say the focus for Unilever has now switched from portfolio reshuffling to execution.

“If (Unilever) continues to execute, Unilever will continue to see a degree of re-rating ... and then hopefully grow from there,” said Will James, portfolio manager at Guinness Global Investors, which holds shares in Unilever and L’Oreal. Unilever has reported improving results in recent quarters, and in July said sales volumes had reached their highest level in more than a decade.
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Yet despite the operational improvement, some Unilever investors are concerned about their continued exposure to the slow-growing food category via their stake in the company resulting from the McCormick merger, Barclays analyst Warren Ackerman said.

Unilever declined to comment.

CEO Fernando Fernandez told an industry event in June: “I believe that every quarter that goes by, and we deliver the numbers that we have been delivering, and we get closer to the closing of a transaction of McCormick, the value of Unilever will be shown.”

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

Under the proposed structure, businesses and companies with annual turnover of up to Tk2 crore would pay no minimum turnover tax. Those with turnover above Tk2 crore and up to Tk3 crore would pay 0.25%, while those with turnover above Tk3 crore and up to Tk4 crore would pay 0.50%. Businesses and companies with turnover above Tk4 crore would continue to pay 1%.

Businesses and companies with turnover above Tk4 crore would continue to pay the existing 1% minimum turnover tax, according to officials familiar with the proposal.

A senior NBR official, speaking to The Business Standard on condition of anonymity, said the summary of the proposal had already been approved by Finance Minister Amir Khosru Mahmud Chowdhury and sent to the law ministry for vetting.

"We expect the order to be issued by Thursday [tomorrow] or early next week," the official said.

The proposal is aimed at reducing the tax burden on small businesses and companies with relatively low turnover. At present, a 1% minimum turnover tax is imposed on turnover regardless of whether a business makes a profit or incurs a loss.

Business community welcomes relief but seeks broader reform

Md Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry, said the proposed changes would reduce the tax burden on small businesses and companies.

He said, however, that tax should ultimately be based on actual income and called for the minimum turnover tax system to be abolished in favour of taxation based on actual profits.

The FBCCI 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.

Taskeen Ahmed, president of the Dhaka Chamber of Commerce and Industry, also supports moving away from the existing minimum turnover tax system.

Until the fiscal 2024-25, most companies, with some exceptions, were subject to a minimum turnover tax of 0.60% of annual turnover, while 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, increasing the effective tax burden on businesses with low profit margins and causing loss-making businesses to pay tax despite having no profits.

Minimum turnover tax can raise effective tax burden

Tax experts said the proposed changes would provide some breathing space for small businesses and companies with low turnover, but warned that larger businesses making low profits or operating at a loss would continue to face the same problem.

Snehasish Barua, a chartered accountant and managing partner of SMAC Advisory, said the proposed reduction would provide some relief to small businesses and low-turnover companies.

"However, larger businesses can also incur losses or make low profits," he said. "Without relief for them, the measure will ultimately do little to reduce their effective tax rate."

Currently, non-listed companies are subject to a corporate tax rate of 27.50%, while the maximum income tax rate for individual taxpayers, including owners of non-company businesses, is 30%.

The FBCCI has cited examples to show how the minimum turnover tax can result in an effective tax burden far higher than the tax payable on actual income.

According to its letter to the finance minister, an individual business with annual sales of Tk50 lakh and a 5% profit margin would earn Tk2.5 lakh. As this amount falls within the tax-free income threshold under the existing system, no income tax would otherwise be payable, the FBCCI said. However, the 1% minimum turnover tax would require the business to pay Tk50,000.

Similarly, if annual sales were Tk1 crore and the profit were Tk5 lakh, the tax payable under the regular income tax system would be Tk10,000, while the 1% minimum turnover tax would amount to Tk1 lakh, according to the FBCCI.

Barua said recent Finance Act reforms had changed the fiscal framework, including by separating minimum turnover tax obligations from source deductions, but the statutory minimum turnover tax remained unchanged.

"For enterprises currently running at a loss or suffering operational strain, deferred mechanisms such as future tax adjustments offer no immediate liquidity relief," he said.

Risk of turnover manipulation

The proposed exemption for businesses with turnover of up to Tk2 crore could create an incentive for some businesses to underreport sales to remain below the threshold, according to concerns raised by some stakeholders.

Similar concerns arose in the past when a 1% minimum turnover tax applied to businesses with turnover above Tk4 crore, with some businesses allegedly reporting lower turnover to avoid crossing the threshold.

The NBR official said, however, that businesses that previously underreported turnover to remain below the Tk4 crore threshold generally reported turnover above Tk2 crore, meaning the proposed structure would leave less scope for such manipulation.

The official said the NBR's calculations showed that at least one lakh individuals and companies would remain liable to pay tax under the proposed system.

"According to our calculations, tax collection will not decrease; rather, it will increase," the official said.

The NBR is also integrating its systems with different organisations to improve monitoring of business transactions, the official said, making it more difficult for businesses to underreport turnover.

Bangladesh's economy showed signs of stabilisation during April–June of FY26, but continued to face significant macroeconomic stress, according to the Metropolitan Chamber of Commerce and Industry (MCCI).

MCCI said in its "Review of Economic Situation of Bangladesh April-June 2026 (Q4 of FY26) released today (25 August).

Provisional Bangladesh Bureau of Statistics (BBS) estimates put overall FY26 GDP growth at 4.14%, up from 3.49% in FY25, although growth remained below the country's longer-term potential, it mentioned.
Inflation remained the major concern, the trade organisation said, adding that headline inflation rose above 9% during the quarter, reaching 9.16% in June after standing at 9.42% in May.

Food inflation eased to 8.60% in June, but persistent non-food and energy-related price pressures continued to constrain household purchasing power.

The external sector, however, showed considerable improvement, said the MCCI.

Remittance inflows remained exceptionally strong, with Bangladesh receiving $9.38 billion during April–June, it added.

Foreign exchange reserves also strengthened, with gross reserves rising to $37.58 billion at the end of June, compared with $34.48 billion at the end of May.

Exports remained subdued despite a strong rebound in June, when shipments reached $4.19 billion, stated the MCCI.

Total exports in FY26 stood at $48.38 billion, marginally higher than the $48.3 billion recorded in FY25, it mentioned.

The figures indicate continued weakness in external demand despite some recovery towards the end of the fiscal year, the MCCI noted.

Overall, the review period reflected gradual macroeconomic stabilisation, supported particularly by strong remittances and improved foreign exchange reserves.

However, high inflation, subdued investment and credit growth, weak export performance, fiscal constraints and vulnerabilities in the banking sector remained significant challenges, the MCCI remarked.

The policy priority going forward should be to consolidate external sector stability while bringing down inflation and creating conditions for stronger private investment and sustainable economic growth, according to the MCCI.

Bangladesh and the Korea International Cooperation Agency (KOICA) yesterday signed a $13 million grant agreement to develop technology experts with a focus on artificial intelligence (AI) in the country.

The Record of Discussion (RoD) and Terms of Reference (TOR) for the project, titled “Fostering Innovative Technology Experts with a Focus on Artificial Intelligence (AI) in Bangladesh”, were signed at a ceremony in Dhaka.
The project will be implemented by the Bangladesh Hi-Tech Park Authority under the Information and Communication Technology (ICT) Division, with KOICA providing the $13 million grant.

To be implemented from 2026 to 2029, the project aims to build a strong foundation of AI knowledge and skills among Bangladeshi technology professionals to meet the growing demand of the rapidly evolving global IT industry.

It will promote innovation by strengthening collaboration between industry and academia and enabling technology professionals to apply advanced technologies to real-world problems, according to a press release issued by the Economic Relations Division (ERD).

The initiative will also encourage the application of AI-based solutions to address local and national challenges, contributing to Bangladesh’s sustainable economic growth.

The project will also enhance the employability and job opportunities of Bangladeshi professionals both at home and abroad, including in the Republic of Korea, through advanced technical training and industry-oriented capacity development.

ERD Secretary Md Shahriar Kader Siddiky and ICT Division Secretary Md Mamunur Rashid Bhuiyan attended the signing ceremony along with senior officials from Bangladesh and KOICA.

Masuma Akter, additional secretary and wing chief for Asia, JEC and F&F at ERD, signed the RoD and TOR on behalf of the Government of Bangladesh, while KOICA Country Director Jihoon Kim signed on behalf of the South Korean agency.

The project is expected to strengthen Bangladesh’s AI ecosystem by developing skilled professionals and fostering stronger links between academia and industry, the release said.