A UN global poverty index has risen for the first time since its creation in 2010, bringing the number of people affected to 1.2 billion, the United Nations Development Programme reported Monday.

In the 2026 edition of their annual report, the UNDP and the Oxford Poverty and Human Development Initiative research center counted 51.5 million more people living in “acute” poverty compared to the previous year.

UNDP Administrator Alexander De Croo said the increase in poverty should be a “wake-up call for the world.” “Behind these figures are 1.2 billion people facing hardships that reinforce one another: hunger, missed schooling and a lack of clean water or electricity. This is unacceptable,” he said in a press release. More than half of those in acute poverty were children.

However, UNDP said a major factor in the recorded increase was population growth, and new data was only available for 13 of the 108 developing countries covered by the report.

While the total number of people in poverty has increased, the report provides a mixed picture. Some 33 nations have halved the percentage of their people living in poverty as defined by the index in the past 15 years.

Those included six countries in sub-Saharan Africa. Among the countries that have made the most rapid progress were countries in Asia -- China and Vietnam -- UNDP said. As in the previous year, the report found that the majority of the poorest people live in sub-Saharan Africa and South Asia, specifically the Indian subcontinent, the most densely populated region on Earth.

“In Egypt, Nepal, and Tajikistan, both the poverty rate and the number of people experiencing multidimensional poverty have decreased significantly,” the press release said.

In Angola and Zambia, the poverty rate has also declined, but population growth has more than offset this decrease, resulting in an increase in the number of people living in poverty.

The poverty index used in the report includes indicators such as the lack of adequate housing, sanitation, electricity, cooking fuel, food and education.

Bangladesh's letters of credit (LCs) for imports rose to $8.10 billion in September, the highest monthly level in 53 months, as higher fuel and raw material prices pushed up import costs alongside a modest increase in import volumes.

A senior Bangladesh Bank official confirmed the figures to The Business Standard, saying LC openings had last exceeded $8 billion in April 2022, when they reached $8.41 billion.
LC openings rose 22.37% year-on-year from $6.62 billion in September last year. LC settlements, meanwhile, stood at $6.38 billion in September.Bankers said the increase in LC openings largely reflected higher import bills, particularly for petroleum products, as geopolitical tensions in the Middle East pushed up fuel prices. Importers are now paying more for the same volume of fuel, while a modest increase in import volumes has also contributed to the rise. They, however, said the volume in capital machinery imports did not rise.
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The higher cost of fertiliser imports has added to the pressure, as Bangladesh typically imports larger quantities of the agricultural input in August and September.

Higher prices push up import bills

A senior executive of a leading business group told The Business Standard that import prices had risen since the outbreak of conflict in the Middle East, with costs increasing particularly sharply over the past two months.

Citing some examples, another business executive said the cost of importing zinc had risen to $4,200 from $3,200, while the price of flat steel had increased to $575 from $500. The cost of bitumen had climbed to $650 from $450.

Hassan O Rashid, managing director of Prime Bank, said higher fuel prices were a major factor behind the increase in import costs, while a modest rise in raw material imports could indicate a gradual improvement in business activity.

"Raw material imports have also risen somewhat, which could indicate some improvement in business momentum. Although the recovery may be slow, I believe business activity could expand to some extent in the future," he said.

A senior official of a bank said the country had imported more than $200 million worth of fertiliser last month, adding that the cost of importing the same quantity had previously been lower.

Bankers said the increase in import costs appeared to have contributed more to the rise in LC openings than the growth in import volumes.

Imports rise amid trade deficit

Bangladesh's merchandise imports grew by more than 12% year-on-year in the first two months of FY2026-27, with imports totalling $12.20 billion, according to balance of payments data.

The merchandise trade deficit reached $3.82 billion during July and August, as import expenditure exceeded export earnings.

A senior official of a private bank said businesses faced no major restrictions on opening LCs because banks had sufficient dollar liquidity to facilitate import payments.

Bangladesh has secured a $335.78 million concessional loan from China's Export-Import Bank to expand and modernise Mongla Port, including the construction of two container terminals and dedicated yards for cargo handling.

The loan agreement, worth RMB2.404 billion (Tk3,592.8975 crore or $335.78 million), was signed on 10 October, according to a press release from the Economic Relations Division (ERD) of the Ministry of Finance.
Alia Meher, joint secretary at the ERD, and Fengjun Tian, assistant general manager of China Exim Bank, signed the agreement on behalf of their respective sides.

Under the project, the Mongla Port Authority, under the shipping ministry, will build two container terminals equipped with modern machinery. The project will also include a container yard, a container delivery yard, and a cargo-handling yard.

China Exim Bank will provide the loan at a concessional interest rate of 2%, with a repayment period of 20 years, including a five-year grace period, the release said.

The project is expected to modernise port facilities and increase cargo-handling capacity at Mongla Port, Bangladesh's second-largest seaport.

Thai business leaders discussed ways to strengthen trade and investment between Thailand and Bangladesh with Finance Minister Amir Khosru Mahmud Chowdhury in Bangkok today (12 October).

A delegation from the Thai Chamber of Commerce and the Board of Trade of Thailand, led by Chairman Dr Poj Aramwattananont, met the minister to explore cooperation in agriculture, fisheries, agro-processing, halal food, tourism, healthcare and manufacturing, as well as greater access for Bangladeshi products to the Thai market.

Prime Minister's Finance and Planning Adviser Prof Rashed Al Mahmud Titumir, PM's Special Assistant on Investment and Capital Market Affairs Tanvir Shahriar Ghani, Finance Secretary Dr Khairuzzaman Mozumder, Economic Relations Division Secretary Shahriar Kader Siddiky, Chairman of the National Board of Revenue Ahsan Habib and Bangladesh Ambassador to Thailand Andalib Elias were present, according to a release issued by the Bangladesh mission in Bangkok.
The Thai Chamber delegation members include Advisers to the Board of Trade of Thailand Vibeke Lyssand Leirvag and Songsang Patavanich, Deputy Secretary General of the Board of Trade of Thailand and Chief of the Working Committee on South Asia Prim Jitcharoongphorn, Deputy Chief of the Working Committee on South Asia Pojjana Paniangvait and Chairman of the Thailand-Bangladesh Business Council Yongyos Pholtanawat.

Bangladesh must make marine resource management a significant contributor to its gross domestic product (GDP) to achieve its target of becoming a trillion-dollar economy by 2034, State Minister for Planning Zonayed Abdur Rahim Saki said today (12 October).

"Equal importance is being given to rail and inland waterways alongside road transport," he said at a seminar titled "Planning Perspective on the Emerging Industries in the Blue Economy Sector of Bangladesh".

The Centre for Bay of Bengal Studies of Independent University, Bangladesh (IUB), organised the seminar at its DMK Lecture Gallery in Dhaka.

Saki said the government had identified shipbuilding, port management and development as priority blue economy sectors, alongside improving connectivity between ports and industrial production centres.

The Prime Minister's Office has a dedicated Blue Economy Cell to improve coordination among institutions working in the sector, he said.

He stressed cooperation among the government, academia and the private sector to develop the blue economy and build a skilled workforce.

"Universities have a crucial role to play in developing the skilled human resources needed to achieve this goal," he said, thanking IUB and its Centre for Bay of Bengal Studies for drawing the government's attention to the issues.

Javed Hosein, a member of the IUB Board of Trustees, said inefficiencies in port operations and logistics were undermining Bangladesh's competitiveness in international trade.

Unloading a 21,000-tonne fuel oil tanker takes three to five days in Bangladesh, compared with four to five hours in Singapore, he said.

Garment exports also take around 95 days to reach their destinations after the fabric is made, compared with 60 days in Vietnam and 32 days in China. Hosein attributed the delays mainly to corruption.

Rear Admiral (retd) Md Khurshed Alam, director of IUB's Centre for Bay of Bengal Studies, delivered the keynote presentation on the prospects of the blue economy and emerging industries.

IUB Vice Chancellor Prof M Tamim delivered the welcome address, while Prof Bakhtiar Ahmed, dean of the university's School of Liberal Arts and Social Sciences, gave the vote of thanks. Marium Binte Hassan Farin, an IUB Environmental Science and Management student, moderated the seminar.

Bangladesh’s readymade garment (RMG) sector is facing mounting challenges as international clothing retailers and brands diversify their sourcing destinations. Rising production costs, energy shortages, geopolitical tensions and uncertainty over preferential market access after the country’s graduation from the least developed country (LDC) category are putting pressure on exporters.

The challenges are exposing the limits of a business model built on low production costs and competitive prices. Although many manufacturers have started moving towards higher-value products, the transition remains gradual.

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The situation has raised questions about how well Bangladesh can compete as costs rise and trade preferences come under pressure.

At a recent press conference, Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said several major international retailers and brands that had sourced garments from Bangladesh for years were shifting some work orders to other destinations for strategic reasons.

The prolonged energy crisis has further weakened buyers’ confidence, as some suppliers have struggled to meet shipment deadlines.

Meanwhile, geopolitical conflicts and Houthi attacks on commercial vessels in the Red Sea have disrupted shipping routes connecting Asia with Europe and North America.

With vessels increasingly rerouting around the Cape of Good Hope instead of travelling through the traditional Suez Canal, shipping journeys have become longer and more expensive.

These disruptions have also encouraged buyers to consider sourcing from countries closer to European markets, including Egypt and Ethiopia, to reduce logistical complications and shipping risks.

THE LIMITS OF A LOW-COST MODEL

Bangladesh established itself as a major global manufacturing hub for basic garments from the early 1980s, capitalising on an abundant labour force and low production costs.

That model helped the country become a leading apparel exporter in the world. But rising production expenses, combined with continued pressure on garment prices, are making it increasingly difficult to sustain the same competitive advantage.

In the European Union, Bangladesh’s garment export unit price is less than half that of Vietnam, reflecting, in part, the limited share of higher-value products in the country’s export basket.

Eurostat data show that the average unit price of garments exported from Bangladesh to the EU fell to €13.80 per kilogramme in January-June this year, from €15.07 in the same period of 2025.

By contrast, Vietnam’s average unit price rose to €29 per kg from €25.95 over the same period. China’s garment export unit price to the EU fell by 2.18 percent.

Among major garment suppliers to the EU, Bangladesh remains one of the cheapest, with only one supplier recording a lower average unit price.

Although many Bangladeshi manufacturers have started exporting higher-value products, the transition remains gradual. According to industry estimates, high-end garments account for 30 to 40 percent of the sector’s output, suggesting considerable scope for upgrading.

The government has been considering a gradual phase-out of export cash incentives, which supported exporters during the sector’s development, ahead of Bangladesh’s graduation from the LDC category.

On top of that, following LDC graduation, Bangladesh will face growing pressure to compete without relying on existing preferential trade arrangements.

The possible loss of duty-free market access is a particular concern. Unless Bangladesh secures the European Union’s GSP+ facility or negotiates a free trade agreement (FTA), exporters could face higher tariffs in a market that absorbs nearly 60 percent of the country’s garment exports, worth more than $25 billion annually.

Average duties on RMG products could approach 12 percent, further eroding the price advantage of Bangladeshi suppliers.

LABOUR AND INVESTMENT PRESSURES

The challenges extend beyond production costs and trade policy. After nearly five decades of growth, the first generation of garment entrepreneurs is ageing, while some second- and third-generation successors are struggling to sustain the traditional business model.

Several older factories are closing, and fresh investment in the sector is gradually slowing.

The workforce is also shrinking, particularly among women. Long working hours, demanding workloads and relatively low wages have discouraged younger workers from entering the industry.

According to the BGMEA, women made up roughly 80 percent of Bangladesh’s garment workforce between 1980 and 1994. The figure fell to 70 percent by 2005 and to around 53 percent in both 2021 and 2023, according to studies by the Ethical Trading Initiative, GIZ, BRAC University and the Bangladesh Institute of Development Studies (BIDS).

Industry insiders say younger workers increasingly prefer occupations such as driving auto-rickshaws or operating small shops, which they perceive as offering “greater flexibility and a more comfortable lifestyle”.

Automation and artificial intelligence are adding another dimension to the challenge, as factory owners adopt new technologies to reduce costs and remain competitive.

Meanwhile, some female garment workers have moved to countries such as Jordan, attracted by higher salaries, greater dignity and better employment benefits.

Despite these difficulties, Bangladesh has made significant progress in workplace safety and compliance. Inspections and remediation initiatives under the Accord and Alliance have improved factory safety standards, helping strengthen the country’s international reputation.

However, improved compliance alone will not guarantee continued competitiveness. Exporters must also contend with rising costs, supply-chain disruptions and the risk of losing preferential access to major markets.

THE WAY FORWARD

Bangladesh retains important advantages, including substantial installed production capacity and a large, experienced workforce capable of serving international retailers and brands.

The challenge is to build on these strengths while reducing dependence on price competition in basic garments.

One option is to diversify export destinations. Markets such as India, Japan, South Korea, Malaysia, Brazil and Argentina could help reduce dependence on traditional Western markets.

Bangladesh has been pursuing trade agreements to preserve preferential access after LDC graduation. These initiatives include an Economic Partnership Agreement with Japan and a Comprehensive Economic Partnership Agreement with South Korea, alongside negotiations with other countries.

According to BGMEA’s Mahmud, international buyers had become concerned about concentrating too much of their sourcing in Bangladesh, prompting them to diversify their supply chains.

Nevertheless, Bangladeshi exporters are increasingly targeting Asian markets, particularly Japan, India and South Korea.

He added that the BGMEA had lobbied the Ministry of Commerce to negotiate FTAs with countries such as Brazil and South Africa, where Bangladeshi exports face tariffs exceeding 25 percent. Such agreements could help exporters secure zero-duty access.

The association has also urged the government to negotiate with the United States to waive the 10 percent duty on garments using US cotton and man-made fibres. Expanding exports of higher-value man-made fibre products could further improve the sector’s prospects.

However, market diversification and trade agreements will need to be accompanied by improvements in domestic production conditions.

Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID), said the garment industry was confronting numerous domestic and international challenges, with rising business costs being a central concern.

He emphasised that Bangladesh must strengthen its competitiveness by reducing production expenses, increasing prices per unit through value addition, ensuring adequate energy supplies and lowering logistics costs.

The sector’s long-term sustainability will ultimately depend on whether Bangladesh can move beyond its traditional reliance on low-cost production, according to the economist.

Modernising factories, upgrading products, diversifying markets and securing favourable trade arrangements will be crucial as the country navigates the post-LDC era, he said.

The Bangladesh Securities and Exchange Commission (BSEC) will publish a draft of the revised initial public offering (IPO) rules within the next couple of days for public consultation, aiming to make the process of listing new companies more effective and investment-friendly.

BSEC Chairman Masud Khan disclosed this today while addressing a seminar at the DSE Multipurpose Hall, organised to mark World Investor Week 2026.

He said the commission was working on several important initiatives to develop and deepen the country’s capital market, including reforming IPO rules, framing direct listing regulations, promoting open-end mutual funds and introducing new investment products.

Once implemented, the initiatives are expected to expand capital market activities and create more investment opportunities, he added.

Emphasising investor protection, the BSEC chairman said it was essential to scrutinise companies’ financial information and assess their fundamentals before allowing them to raise capital through IPOs.

Investors should carefully examine a company’s financial statements, cash flow from operating activities and actual financial capacity before making investment decisions, he said.

He also cautioned investors against making decisions based on promises of unusually high returns or unverified information.

Ensuring transparency, accountability and investor confidence in the capital market requires coordinated efforts by the regulator, stock exchanges, media and investors, Masud Khan said.

He expressed hope that the ongoing reform and development initiatives, including the revision of IPO rules, would help make the country’s capital market more efficient and sustainable.

Speaking at the seminar, Dhaka Stock Exchange (DSE) Chairman Mominul Islam stressed the need for effective communication to inform the public about positive initiatives, reforms and development activities in the capital market.

He also underscored the importance of strengthening the institutional capacity, governance and professional efficiency of brokerage houses, merchant banks and asset management companies to build lasting investor confidence.

A transparent, strong and sustainable capital market is essential for supporting Bangladesh’s industrialisation and economic development, he said, calling for coordinated efforts by all stakeholders.

Highlighting the theme of World Investor Week 2026, the DSE chairman called for greater awareness of digital fraud, investment decisions based on reliable information and responsible actions by all concerned to protect investors’ interests.

The seminar was chaired by Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA).

BSEC Commissioners Tanvir Habib Rahman, Advocate Nahid Mahtab, CFA Md Nafiz Al Tarik and Hossain Shahadat, FCA, also attended the event as special guests.

Dhaka stocks fell for another session today (12 October), with nearly 79% of traded companies losing value on the Dhaka Stock Exchange (DSE), as economic uncertainty and weak sentiment kept investors on the sidelines.

The benchmark DSEX index lost 46.2 points, or about 0.85%, to close at 5,404, down from 5,451 in the previous session. Turnover fell 20% from the previous session to Tk453 crore.

Turnover stood at Tk453 crore, down 20.4% from Tk566 crore in the previous trading session, reflecting weaker trading activity amid cautious investor sentiment.

According to DSE market data, 385 issues were traded yesterday. Of them, 303 declined, 47 advanced and 35 remained unchanged.

The DS30 index, which represents blue-chip stocks, fell nine points to 2,095. However, the DSES, the Shariah-based index, rose 12 points to 1,071.

Market participants said gas and electricity shortages are disrupting production and business operations, hurting corporate earnings and profitability. Lower profits could also affect dividend payouts, while rising operating costs are squeezing margins.

Analysts said the market remained under pressure due to weak buying interest and low trading activity. Speculative trading has kept investor interest concentrated in overvalued stocks, while fundamentally undervalued stocks could become more attractive as treasury rates have fallen significantly in recent months.

In its market commentary, EBL Securities said the capital market remained entrenched in a prolonged downward trajectory as concerns over weak corporate earnings, persistent domestic challenges and geopolitical uncertainty continued to erode investor confidence.

The brokerage said market indices remained on a downward trajectory from the beginning of the session as sector-wide sell-offs reflected widespread risk aversion and persistent selling pressure.

On the sectoral front, textile stocks accounted for the largest share of turnover at 25%, followed by general insurance at 10.8% and engineering at 9%.

Financial institutions led sectoral losses, declining 3.6%, followed by mutual funds, which fell 2.9%, and general insurance, down 2.7%. Jute stocks, however, posted the highest sectoral gain of 2.4%.

National Bank led the gainers, rising 8.33%, followed by GBB Power, which gained 8.26%, and Prime Textile Spinning Mills, up 8.21%.

Among the biggest losers, MBL 1st Mutual Fund fell 9.88%, Phoenix Finance 1st Mutual Fund declined 9.76%, and CAPM IBBL Islamic Mutual Fund dropped 9.49%.

Evince Textiles, Beximco and Sonali Aansh Industries were the most actively traded stocks by turnover.

The bearish trend also continued on the Chittagong Stock Exchange (CSE). The CASPI, the broad index of the port-city bourse, fell 84 points to 14,551, while the CSCX declined 53 points to 8,946. Turnover on the CSE stood at Tk29 crore.

A Cabinet meeting today (12 October) discussed expanding the use of solar power as a renewable energy source and accelerating the implementation of ongoing development projects.

The meeting was held at the Secretariat in the afternoon with Prime Minister Tarique Rahman in the chair, said a release issued by the PM's Press Wing.

The meeting emphasised expanding the use of renewable energy in the country's energy sector and speeding up the implementation of ongoing development projects.
Various government activities and development-related issues were also discussed at the meeting.

Most stock markets rose on Monday as oil prices tumbled after Donald Trump announced an "energy ceasefire" between Russia and Ukraine, offsetting a fresh wave of Houthi attacks on Saudi Arabia.
Both main crude contracts sank more than 1% following the US president's declaration, even as it sparked astonishment in Kyiv, which also said Moscow had struck multiple power plants in the country.

"Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine," Trump said early yesterday (11 October) on Truth Social. "Both parties have agreed. Do not break it!"

His post came after he called on Ukrainian President Volodymyr Zelensky to halt attacks on Russian refineries and said it was "time for Ukraine to get a new president" who would finally settle the war.

Zelensky appeared to express surprise at the announcement, saying he was seeking further details, but added that "Ukraine supports the ceasefire, and it is important that Russia support it as well".

Russia has yet to confirm its agreement.

While the announcement was welcomed by Ukraine's allies, Trump had come under fire after declaring a temporary easing of US sanctions on Russian diesel, which European leaders and Kyiv said would only embolden Russian President Vladimir Putin.

The drop in oil prices reversed an initial spike that came in response to Houthi attacks on Saudi Arabia at the weekend.

At least a dozen people were killed at Riyadh's international airport on Saturday — the deadliest attack on Saudi soil for more than a decade — and another person died following a second strike on Sunday.

The assaults marked a sharp escalation in the Yemen war, where Riyadh has long provided military support to the internationally recognised government against the Houthis.

The Iran-backed group on Sunday claimed multiple attacks over the previous 24 hours and threatened to continue targeting the kingdom's transit hubs, calling them "a theatre of operations for our forces".

"The market is no longer paying full geopolitical premium on every headline, and that is probably the most useful signal in the morning price action," wrote SPI Asset Management's Stephen Innes.

"A strike matters if it threatens real barrels, shipping lanes, refining capacity or insurance costs; otherwise, the market is getting increasingly reluctant to pay up simply because the geopolitical ticker flashes red.

"The physical market remains tight enough to keep Brent above $100, but futures are refusing to treat every new escalation as the start of another straight-line inflation shock."

The drop in oil prices supported most Asian markets, with Hong Kong, Sydney, Singapore, Wellington and Manila all rising.

But Seoul and Taipei were dragged down by losses in chipmakers SK hynix, Samsung and TSMC. Tokyo was closed for a holiday.

US futures were sharply higher.

Investors are also preparing for the release of key US inflation and retail sales data, which could play a major role in the Federal Reserve's interest rate decisions. The bank is due to meet at the end of October.

The start of the earnings season is also in focus this week, with banking giants JP Morgan, Goldman Sachs and Bank of America due to report.

Technology giants will follow later in October and in November, with traders keen to gauge the outlook for the AI sector given the vast sums of money pumped into it in recent years.

BRAC Bank has been granted permission to appoint up to three representative directors on behalf of a single shareholder company, following Bangladesh Bank's relaxation of a provision of the Bank Company Act, 1991.

In a circular issued today (12 October), the central bank said it had relaxed Section 23(1)(kakaka) of the Bank Company Act, 1991, for BRAC Bank under the powers conferred by Section 121 of the same law.

As a result, a shareholder company holding 10% or more, but no more than 50%, of the bank's shares may appoint up to three representative directors to its board.

Under Section 23(1)(kakaka) of the Bank Company Act, a single institution or company is not permitted to appoint more than one representative director to a bank's board. Under the existing provision, therefore, a shareholder company can appoint only one representative director.

Bangladesh Bank's decision relaxes this restriction specifically for BRAC Bank. However, no single institution will be allowed to appoint more than three representative directors.

A Bangladesh Bank official said BRAC owns 46% of BRAC Bank's shares. Under the existing law, the organisation could not appoint multiple representative directors to the bank's board. With the provision relaxed for BRAC Bank, it will now be possible for BRAC to appoint more than one representative director, subject to the limit of three.

Bangladesh's rural borrowing rate has risen from 36% to 42% of households over two decades, while agriculture's share of rural loans has fallen from 25% a decade ago to 16%.

The findings were presented at a workshop on food-system financing organised today (12 October) by the Bangladesh Institute of Development Studies (BIDS) and the International Food Policy Research Institute (IFPRI) in Agargaon, Dhaka, with support from the Consultative Group on International Agricultural Research's (CGIAR) Better Diets and Nutrition Science programme.

NGO microfinance institutions account for three out of every four rural loans. Although the median size of NGO microloans has nearly doubled in real terms, borrowers face mounting repayment pressure. NGO loans carry a flat 15% rate, equivalent to an effective rate of about 27%, compared with bank lending rates averaging around 10%. Informal moneylenders charge 50%-60% annually.
The share of borrowers spending over 40% of their income on instalments has risen from 22% to 41%, reaching 79% among the poorest 20% of households. The share of NGO borrowers also taking moneylender loans has increased from 27% to 49%.

Small farmers face credit constraints

Research presented at the workshop found that borrowing per acre for farms smaller than half an acre doubled from Tk6,000 in 2010 to Tk13,500 in 2022. Banks' emphasis on land ownership excludes many farmers who lease land with cash.

Agricultural loans largely finance fertiliser, seeds, livestock and land leases, with little investment in mechanisation. Fewer than 2% of farm households own tractors or power tillers, while banks finance only 2%-7% of agricultural machinery costs.

Loan repayment schedules also fail to match farm income cycles. While 60–80% of agricultural bank and moneylender loans allow lump-sum or annual repayment after harvest, only 4–6% of NGO loans offer similar flexibility.

Livestock, which contributes 7.6% of agricultural GDP and is owned by small farmers in 90% of cases, receives less than 5% of agricultural loans. Research suggests cattle fattening can yield 20%-30% profit over six months.

Experts seek broader financing reforms

PKSF Managing Director Md Fazlul Kader said financing must cover the entire food system, including collection, storage, processing and marketing, while supporting environment-friendly farming.

BIDS Director General Prof AK Enamul Haque called for risk-sharing arrangements and greater use of technology to raise productivity, warning that rising debt could push farmers out of agriculture.

Microcredit Regulatory Authority Executive Vice-Chairman Prof Mohammad Helal Uddin said the sector's accumulated surplus grew from Tk3,000 crore in 2006 to Tk69,000 crore. He called for reviewing financing costs and service charges, which can reach 24%, noting that greater reliance on savings could reduce borrowing costs.

Agriculture Secretary Md Selim Khan stressed accessible machinery finance and repayment schedules aligned with harvest seasons.

Participants said expanding credit alone would not improve farmers' financial security without lower financing costs, flexible repayment terms and effective risk-sharing mechanisms.

In a move to sustain industrial production and maintain market stability, Bangladesh Bank extended policy support and relaxed financial restrictions under the Bank Company Act for two Beximco Group companies — Shinepukur Ceramics and Beximco LPG Unit-1.

The two companies have been exempted from complying with Section 27Kaka(3) of the act, a move expected to ease difficulties in opening letters of credit (LCs) and securing working capital to import raw materials.

The central bank issued a circular today (12 October) granting the exemption until 31 December 2027.

Under the facility, Shinepukur Ceramics, a listed company, can now open LCs with a 15% margin, down from the previous 100%. Despite not being a defaulter itself, the company had been treated as one because of defaults by other Beximco Group companies.

Beximco LPG Unit-1, meanwhile, will be allowed to open LCs with a 100% margin. Previously, defaults by other group companies had prevented the LPG business from opening any LCs.

Following the fall of the Awami League government on 5 August 2024, Beximco LPG Unit-1 was unable to open LCs and had to buy raw materials from other domestic LPG companies to supply the market. The new facility will allow it to import raw materials directly.

Earlier, the Bangladesh Securities and Exchange Commission (BSEC) restructured the boards of three listed Beximco Group companies, excluding the group's vice-chairman, Salman F Rahman.

Shinepukur Ceramics

The Bangladesh Bank notification said the central bank had granted the facility under the powers conferred by Section 121.

It said that although Sonali Bank's customer Shinepukur Ceramics Limited is a loan defaulter, its existing working capital limit of Tk105 crore had been renewed in the national interest. The renewed facility will remain valid until 31 December 2027.

As a result, the company will not face any complications under Section 27Kaka (3) of the Bank Company Act, 1991.

The central bank imposed two conditions for the facility. First, the Finance Division will bear no liability for the credit facility, and Sonali Bank will not be able to claim financial assistance from the government in the future.

Second, all earnings of Shinepukur Ceramics must be deposited into a designated account, from which Sonali Bank's dues must be repaid regularly on a proportional basis.

A Beximco Group official, speaking on condition of anonymity, said, "Shinepukur Ceramics will be able to operate at its optimum capacity following approval for the renewal of its working capital facility. Since 5 August, the company had been required to open letters of credit (LCs) with a 100% margin, while its funded facilities had declined to Tk35 crore from Tk80 crore."

Beximco LPG Unit-1

A separate notification said National Bank PLC had been allowed, under Section 121 of the Bank Company Act, to open letters of credit (LCs) and provide working capital to its loan-defaulting customer Beximco LPG Unit-1 Limited against a 100% margin.

Subject to certain conditions, the restrictions under Section 27Kaka(3) of the Bank Company Act, 1991, will not apply to the facility until 31 December 2027.

The conditions stipulate that the facility will not create any liability for the government or Bangladesh Bank, and National Bank will not be entitled to seek financial assistance from either in the future.

All earnings of Beximco LPG Unit-1 Limited must be deposited into a designated account, from which National Bank's dues must be repaid regularly on a proportional basis.

Earlier, following a request from the group, the BSEC approved the reconstitution of the boards of three listed Beximco Group companies — Beximco Pharmaceuticals, Beximco Ltd and Shinepukur Ceramics — excluding Vice Chairman Salman F Rahman, to break a years-long deadlock and resume regular operations.

With Salman F Rahman, former private industry and investment adviser to ousted prime minister Sheikh Hasina, excluded, the three companies will operate without him on their boards for the first time since their inception, according to group sources.

Salman agreed in September to step down from the boards of Beximco's listed companies to resolve the prolonged operational deadlock and restore full operations. He has remained in custody since August 2024 over multiple criminal charges.

Following consultations with the government and regulatory bodies, Beximco Group applied to the BSEC to reconstitute the boards of its listed companies.

Strong investment in AI infrastructure is keeping global growth at around 3 percent, yielding major benefits for many Asian economies that supply the hardware, such as Thailand, International Monetary Fund Managing Director Kristalina Georgieva said on Monday.

The artificial intelligence investment boom was already delivering a "demand shock, an investment shock" that could boost growth in advanced Asian economies by a half to one full percentage point, and emerging Asian economies by 0.2 to 0.8 percentage point, she said.

"AI, love it, hate it. It's already here," Georgieva said.

"That shift into higher gear is what is keeping the world economy growing at around 3 percent, despite the fact we are being dragged down by the energy supply shock," she told hundreds of participants on the first day of a weeklong set of meetings of the IMF and World Bank in the Thai capital.

The IMF in July forecast global growth at 3 percent in 2026. It will release an updated outlook on Tuesday. Some 18,000 people are expected to attend the meetings this week, including finance officials from the IMF's 191 members. Several ministers will skip the meeting to focus on domestic priorities, including US Treasury Secretary Scott Bessent and Spanish Finance Minister Arcadi España, sources familiar with the matter said.

AI WILL HAVE PROFOUND CONSEQUENCES

Georgieva said AI amounted to a "slow-moving tsunami" that would have profound consequences for jobs, growth, education and even how governments generate revenue through taxation, given the expected shift from labor to capital. The IMF estimates that AI could lead to 40 percent of jobs being augmented, downgraded or eliminated, over time, she said.

An initial study showed that 10 percent of jobs in the US already required AI skills. While routine, repetitive jobs were shrinking, low-paying jobs were increasing in two lower-paying sectors, construction and data centers. "It is a transformative technology. It so completely changes how we work, how we live," she said, noting that an AI assistant now gave her a 30-second message about her schedule each day.

The US, China and India are the most important producers in the AI supply chain, but many of the firms building the needed infrastructure are in Asia, Georgieva said, referencing Thailand, host of this year's annual meetings.

AI IMPACT ON ENTRY-LEVEL JOBS

World Bank President Ajay Banga, who has made jobs a central focus of his presidency, said the development bank was focused on leveraging "small AI", which is not dependent on large language models, to generate enormous productivity gains for farmers, healthcare systems, educators and others in emerging markets.

Singapore's President Tharman Shanmugaratnam, speaking at the same event, said governments should address how AI was reducing job opportunities for graduates. "There is a particular problem that we have to address very soon ... and that is that, the first rung in employment, your first job upon graduation, is now seeing less demand," he said.

He said the world should also guard against AI resulting in a "new divergence" in growth and job creation between developing and advanced economies.

"AI is going to widen the divergence if we are too passive about it," he said.

"So we've got to do everything we can to first use AI to create good jobs and to create jobs that can be done well by human beings, can allow them to ride up a career ladder despite AI."

Dhaka Stock Exchange (DSE) Chairman Mominul Islam on Monday warned that investors are being defrauded through fake investment offers, misinformation and promises of doubling their money in a short time on social media.

“Investors are suffering financial losses due to these scams, which are run using the logos of stock exchanges and financial institutions,” he said at a seminar titled "Digital Deception and Scam Alert" held at the DSE Tower in the capital's Nikunja area.

Mominul said public confidence in the capital market is also being eroded, stressing the need for modern surveillance, enforcement of laws, greater investor awareness and stronger communication to tackle the situation.

The DSE and the DSE Brokers Association of Bangladesh (DBA) jointly organised the seminar as part of "World Investor Week 2026."

The DSE chairman said a key condition for ensuring effective information flow in the capital market is delivering timely, accurate and complete information to investors. “However, with the spread of social media, digital fraud has emerged as a new challenge.”

Using the logos of stock exchanges and various financial institutions, many people are posing as registered or licensed financial analysts, he said, adding that such moves are aimed at misleading and influencing investors.

Unrealistic promises, such as turning Tk 1 lakh into Tk 2 lakh within two weeks, are being used to lure people into traps, Mominul said.

Fraudsters are running various scams, including Ponzi schemes, by exploiting people's desire to get rich quickly, he said, noting that social media has spread such frauds far more widely than before.

The DSE chairman further said a huge volume of information unrelated to market fundamentals is circulating on social media. “Some individuals, in the name of technical analysis, are making remarks about the market that have no connection to its fundamentals.”

"Vested quarters may be behind such activities," he said, adding that investors are being confused and there is a risk of disruption to the normal functioning of the market.

Mominul said the DSE has taken steps to modernise its surveillance and monitoring systems.

It is also moving to make investor awareness programmes more effective in coordination with the Bangladesh Securities and Exchange Commission (BSEC), he said.

Preventive measures alone cannot stop digital fraud, the DSE chairman said, adding that credible information and positive messages must also be presented to counter misleading campaigns.

For this, he stressed building strong brokerage houses, merchant banks and asset management companies in the capital market, saying their institutional capacity and governance must be improved while also focusing on earning public trust.

Mominul underlined the need for collective efforts to develop the capital market as a strong and effective pillar of the economy.

Effective surveillance, greater awareness and a robust communication system must be built to combat digital fraud and restore investor confidence, he added.

The International Monetary Fund (IMF) has further lowered Bangladesh’s growth forecast for the fiscal year 2026-27 (FY27) to 3.2 per cent, down from its previous projection of 3.5 per cent made in July.

The Washington-based lender unveiled the latest projections in its World Economic Outlook (WEO) on Tuesday in Bangkok, as part of the 2026 Annual Meetings of the IMF and the World Bank Group.

The IMF also projected Bangladesh’s inflation rate to rise to 10.9 per cent in FY27, up from its April forecast of 6.0 per cent.

During the first three months of the current fiscal year, headline inflation stood at 8.32 per cent, 8.26 per cent and 8.34 per cent, respectively.

The IMF’s latest projections came days after the World Bank and the Asian Development Bank (ADB) issued weaker economic outlooks for Bangladesh for FY27.

On October 6, the World Bank projected Bangladesh’s gross domestic product (GDP) growth at 3.4 per cent in FY27, citing energy and banking-sector vulnerabilities, weak investment and persistent inflationary pressures as factors weighing on economic activity.
The World Bank also forecast inflation to remain elevated at 8.6 per cent in the current fiscal year.

Earlier, in September, the Manila-based ADB lowered its FY27 growth forecast for Bangladesh to 4.0 per cent from its earlier projection of 4.5 per cent.

In its Asian Development Outlook (ADO) September 2026 report, the ADB said severe structural energy deficits, banking-sector stress and persistent inflationary pressures would continue to constrain the country’s economic expansion in FY27.

The ADB also projected Bangladesh’s inflation rate to rise to 9.0 per cent in the current fiscal year.

Strong deposit growth in August has failed to spur robust private sector credit expansion, according to a government report.

Banking sector deposits stood at Tk 21.31 lakh crore in August 2026, up 12 percent year-on-year, according to the Economic Update & Outlook September 2026 prepared by the General Economics Division (GED) of the Bangladesh Planning Commission.

“This is faster than the 10.01 percent growth recorded a year earlier, so deposit collection has gained momentum,” the report said.

“It suggests that liquidity in the banking system has improved and that depositors’ confidence is recovering,” it added.

In contrast, private sector credit grew by 4.75 percent year-on-year to Tk 18.30 lakh crore in August, below the 6.35 percent growth recorded in the same period the previous year, according to the report.

Private sector credit is likely to remain subdued in the near term if borrowing costs stay high, the GED report says
Private sector credit is likely to remain subdued in the near term if borrowing costs stay high, business confidence recovers slowly and credit risk remains elevated, the report said.

Credit growth was uneven across sectors. Public sector credit rose by 32.45 percent to Tk 7.22 lakh crore in August, more than double the 14.81 percent growth recorded in the previous year.

“Heavy public sector borrowing may also crowd out private lending. The pace of private credit recovery will therefore be the key indicator to watch,” the report said.

Overall, the gap between deposit growth and private credit growth points to ample liquidity that is not being channelled into productive private investment, according to the GED.

Policy attention should focus on easing financing costs, improving the investment climate and strengthening the banking sector’s ability to lend, it said.

“Sustained deposit growth would give banks the resources to support a revival of private credit as macroeconomic conditions stabilise,” it added.

Bangladesh has discussed a possible new long-term liquefied natural gas (LNG) supply agreement with QatarEnergy, exploring ways to diversify supplies through the company's international portfolio of sources and transportation routes amid growing concerns over energy security.

State Minister for Power, Energy and Mineral Resources Aninda Islam Amit held bilateral talks with Saad bin Sherida Al Kaabi, Qatar's minister of state for energy affairs and also QatarEnergy President and CEO, in Saudi Arabia yesterday (11 October), according to a press release issued by the Ministry of Power, Energy and Mineral Resources.

The discussions covered Bangladesh's growing gas demand, its existing LNG import arrangements and the possibility of a new long-term supply contract.
State Minister for Power, Energy and Mineral Resources Aninda Islam Amit (third from the left) is pictured during bilateral talks with QatarEnergy in Saudi Arabia on 11 October 2026. Photo: Courtesy
State Minister for Power, Energy and Mineral Resources Aninda Islam Amit (third from the left) is pictured during bilateral talks with QatarEnergy in Saudi Arabia on 11 October 2026. Photo: Courtesy

The meeting also highlighted the potential to diversify LNG supply sources and routes through QatarEnergy's international portfolio, an important consideration for Bangladesh as it seeks to strengthen energy security amid disruptions to international fuel supply chains.

Qatar has been a major LNG supplier to Bangladesh under long-term contracts.

However, disruptions to Qatari LNG supplies following the US-Israel war on Iran and the closure of the Strait of Hormuz have increased uncertainty over deliveries, putting additional pressure on Bangladesh's efforts to secure gas for power generation, industry and other consumers.

The latest discussions come as Bangladesh seeks to broaden its supplier base and reduce exposure to supply disruptions in any single region or shipping route.

Saudi Arabia talks focus on energy security

In a separate meeting, Amit sought Saudi Arabia's cooperation in strengthening Bangladesh's energy security and expanding bilateral cooperation in the energy sector.

He met Saudi Assistant Minister of Energy Nasser Al-Qahtani, with discussions focusing on long-term energy cooperation, the establishment of a framework for collaboration between the two countries and potential support for Bangladesh's energy development plans.

Amit highlighted the need for long-term energy supply arrangements and cooperation in developing LNG infrastructure, including terminal facilities.

He also raised the prospects for offshore and onshore gas exploration as Bangladesh seeks to strengthen domestic supply and meet its growing energy requirements.

The state minister expressed hope that Saudi Arabia would extend its support to help Bangladesh achieve its energy goals by 2030.

He also stressed the importance of exchanges between representatives of the two countries and the establishment of a cooperation framework to advance joint initiatives.

The Saudi side said Bangladesh holds particular importance as a brotherly country and expressed optimism about strengthening existing cooperation in energy security and other development areas.

The discussions with Saudi Arabia are significant as Bangladesh seeks additional international partners to support its energy needs while dealing with uncertainty in global LNG markets.

ACWA Power expresses interest in renewable energy investment

Amit also met Samir J Serhan, chief executive officer of Saudi energy and water company ACWA Power, to discuss investment opportunities in Bangladesh's renewable energy sector.

ACWA Power expressed interest in investing in the sector, according to the ministry's press release.

The meetings took place on the sidelines of the 17th International Energy Forum in Riyadh. Members of the Bangladesh delegation and officials from the Bangladesh Embassy in Saudi Arabia were also present.

Indications are there that the International Monetary Fund (IMF) might extend a loan of US$4.5 billion under a new programme to Bangladesh.Bangladesh economic news

Officials said the preliminary positive indications came as a Bangladesh delegation led by Finance Minister Amir Khosru Mahmud Chowdhury Monday opened negotiations on the sidelines of the IMF-World Bank annual meetings in Bangkok.

The IMF lending recipe that covers three years is meant to help meet the country's external financing needs and support economic reforms.

Preliminary discussions between Bangladesh and the Washington-based multilateral lender have figured out a $4.5-billion package, although the final amount, financing terms and policy conditions have yet to be agreed, officials at the Ministry of Finance (MoF) said.

The proposed programme is expected to provide balance-of-payments (BoP) support to Bangladesh, which continues to face pressure from elevated inflation, external-financing requirements, weak revenue mobilisation and vulnerabilities in the banking sector.

After a meeting with the IMF, Finance Minister Amir Khosru Mahmud Chowdhury Monday told journalists that they completed first round of discussions with the IMF on the day and would sit again on Tuesday or Wednesday.

A senior MoF official said the IMF spoke of the types of conditions that are lookalike with the terminated previous loan programme.

"IMF's talks are dominating some conditions like improvement in Bangladesh's tax-GDP ratio, baking sector reforms, rationalizing subsidies in energy and agriculture sectors and tightening monetary policy to control inflation," the MoF official told The Financial Express.Trade policy analysis

The proposed assistance would come at a critical time for Bangladesh's economy, as policymakers seek to rebuild foreign-exchange reserves, stabilise prices and maintain external-sector stability.

Balance-of-payments support would help the country meet its external-financing requirements and strengthen its capacity to manage foreign-exchange pressures.

The actual impact, however, would depend on the disbursement schedule, financing terms and implementation of the agreed policy measures.

The MoF official said: "After the Bank-Fund meeting, a mission from the IMF is likely to visit Bangladesh within a month. Then the final talks on the terms and conditions of the proposed loan will be finalised."

Meanwhile, Bangladesh has already received substantial financial assistance under the last IMF-supported arrangements, which include the Extended Credit Facility (ECF), Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF).

On January 30, 2023, the IMF approved a $4.7-billion loan arrangement for Bangladesh. The then Awami League government had sought the assistance through a letter sent in July 2022.

Of the seven instalments under that arrangement, $3.64 billion had been disbursed in five instalments.

During the interim government, the size of the loan was increased by $800 million to $5.5 billion in June 2025.Read Market News

Later, the present government decided to scrap the ongoing programme and requested a fresh financial arrangement to reflect changing economic circumstances and its reform priorities.

The MoF official said banking-sector reform is expected to be a major component of the proposed programme.

Bangladesh's banking industry has faced longstanding weaknesses, including non-performing- loan (NPL) buildups, capital deficiencies and governance concerns.

The government is also likely to face pressure to increase domestic revenue collection, which remains low relative to the size of the economy.

Potential measures include widening the tax base, improving tax administration and reviewing exemptions and duties. Any additional revenue measures would need to be balanced against their effects on inflation, households and businesses.

The IMF has also emphasised the need for prudent fiscal and monetary policies, improved exchange-rate flexibility and better-targeted subsidies.

Meanwhile, the Finance Minister said on Monday in Bangkok that Bangladesh is optimistic about securing a new loan programme with the IMF and is negotiating a World Bank partnership framework that would provide a financial cushion against mounting energy costs and capital shortfalls in the banking sector.

The government is seeking support for the next two to three years to manage the pressure on public finances from high oil and gas prices amid ongoing wars and global economic uncertainty, while exploring ways to address capital deficiencies in banks with support from the International Finance Corporation (IFC).Bangladesh economic news

"We need a cushion against that pressure. We need this cushion for two to three years under the partnership to support our deficit in energy and banks," he told journalists at the IMF-World Bank Annual Meetings in Bangkok.

He said discussions with both the IMF and the World Bank were progressing, expressing confidence that outstanding issues would be resolved through further negotiations and a phased implementation of reforms.

"We are optimistic on the loan," Mr Khosru said.

He wouldn't disclose the amount Bangladesh seeking from the IMF. He would discuss the matter later.

On the World Bank's proposed partnership framework, he said negotiations were underway and a team from the lender would visit Dhaka to assess the country situation.

"We are in discussion with the World Bank on a partnership framework agreement. We will have a programme with the World Bank which will be pretty good," he said.

He said the government expected revenue earnings to rise soon, with the tax-to-GDP ratio gradually increasing as fiscal measures took effect.

The finance minister dispels musings that the government is uncomfortable with the IMF's position, saying that its policies are broadly aligned with the public mandate and that discussions with the lender are continuing.Trade policy analysis

The finance minister said the IFC expressed interest in helping address capital shortages in Bangladesh's banking sector and the private sector, adding that representatives of the World Bank's private-sector lending outfit would visit Dhaka.

"Interestingly, IFC showed interest. They are coming to Dhaka. IFC is working on recapitalisation of banks and the private sector," he said.

He has noted that capital deficiencies affected a number of banks and private businesses, making fresh investment important for restoring financial strength and supporting economic activity.

IT Consultants PLC, operator of the Q-Cash electronic payment network, reported a 14.09% year-on-year decline in profit in FY26 as financial constraints at member banks reduced transaction processing volumes.

The company's earnings per share (EPS) fell to Tk3.11 in the fiscal year ended 30 June 2026, from Tk3.62 a year earlier, according to price-sensitive information approved by its board on Sunday.

The board recommended a 10% cash dividend, or Tk1 per ordinary share of Tk10 each, for FY26, down from 12% for FY25. The record date for determining dividend eligibility is 4 November.

In its disclosure, the company said revenue from service and maintenance charges and transaction sales came under pressure during the year as financial constraints at several member commercial banks affected their operations and reduced transaction volumes.

IT Consultants operates the Q-Cash electronic transaction processing network, which connects 37 banks and more than 6,000 branches nationwide. Its performance therefore depends partly on transaction activity across member banks.

The company's net operating cash flow per share (NOCFPS) fell 18.88% to Tk3.61 in FY26, from Tk4.45 a year earlier.

Meanwhile, net asset value (NAV) per share rose to Tk25.16 as of 30 June 2026, from Tk23.25 a year earlier.

Shareholders will consider the financial statements and proposed dividend at the company's annual general meeting, scheduled for 13 December. The dividend recommendation is subject to their approval.