United News of Bangladesh

A delegation from the International Monetary Fund (IMF) met with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Wednesday to discuss the current state and future risks of the country's ready-made garment (RMG) sector, aiming to ensure macroeconomic stability. The meeting took place at the BGMEA office in Uttara and was attended by BGMEA President Mahmud Hasan Khan, Senior Vice President Enamul Haque Khan, Vice Presidents Md. Rezwan Selim and Vidya Amrit Khan, and other directors. The IMF delegation included Senior Economist Qiaoe Chen, Senior Economist Ruifeng Zhang, and Economist Ayah Said. The primary objective of the IMF delegation was to gather insights into the sector's health and potential vulnerabilities amidst global volatility, a key element in assessing Bangladesh’s overall economic stability. Both sides engaged in a deep exchange of views on strategic ways to achieve sustainable industry growth despite global uncertainties. Key discussion points included the potential impact of US tariffs on garment exports, the effects of Bangladesh’s imminent graduation from Least Developed Country (LDC) status, strategies for sustained growth, and the diversification into high-value and value-added products. LDC Graduation and Trade Policy Challenges: BGMEA leaders highlighted the critical necessity of maintaining duty-free access post-LDC graduation. They informed the IMF that the BGMEA Board has urged the government to prioritize signing Free Trade Agreements (FTAs) and Economic Partnership Agreements (EPAs) with major trading partners. These key partners include the European Union, the United Kingdom, Japan, and Canada, which are vital for retaining tariff benefits and competitiveness once Bangladesh loses its LDC-specific trade preferences. The BGMEA leaders presented the industry’s strategic roadmap, emphasizing a transition from a labor-intensive production model to a high-value model driven by innovation and technology. They stressed the need to enhance capacity in manufacturing Man-Made Fiber (MMF) and Technical Textile-based garments and prioritizing skill development for workers to meet the demands of this technological upgrade. The BGMEA also highlighted their ongoing recommendations to the government aimed at reducing the Cost of Doing Business (CoD) and easing trade:Ensuring an uninterrupted supply of electricity and gas.Improving the efficiency of port management. Simplifying Customs and Bond procedures.Bringing interest rates down to a single digit. Fast-tracking the completion of critical infrastructure projects like the Dhaka-Chattogram highway. The IMF delegation concluded the meeting by praising the apparel sector’s contributions to Bangladesh's economic stability and development agenda.

Asian stocks plunged on Wednesday after a sharp sell-off in Big Tech shares pulled Wall Street lower overnight, with Tokyo’s benchmark Nikkei 225 tumbling more than 4%. By midday, the Nikkei had dropped 4.7% to 49,104.05, weighed down by heavy losses in chip-related stocks. Shares of Tokyo Electron fell 6.1%, while semiconductor testing equipment maker Advantest Corp. slumped 10%. South Korea’s Kospi also fell sharply, losing 3.7% to 3,977.24 as major tech firms tracked global declines. Samsung Electronics dropped 4.4%, and SK Hynix lost 2.7%, despite its recent gains tied to artificial intelligence collaboration with Nvidia. Chinese markets saw milder losses, with the Shanghai Composite down 0.3% to 3,946.78 and Hong Kong’s Hang Seng slipping 1.1% to 25,656.90. The slump followed steep declines in technology shares on Wall Street, where the sector’s outsized weight has amplified market swings. Palantir Technologies fell 7.9% despite better-than-expected earnings, Nvidia dropped 4%, and Microsoft slipped 0.5%. The S&P 500 fell 1.2% to 6,771.55, the Dow Jones Industrial Average dropped 0.5% to 47,085.24, and the tech-heavy Nasdaq sank 2% to 23,348.64. Abu Dhabi hosts oil summit as OPEC+ pauses early 2026 output hikes Investors remain focused on corporate earnings amid a U.S. government shutdown that has halted key economic reports on inflation and jobs. Analysts say the data gap complicates the Federal Reserve’s decision-making on interest rates as inflation remains elevated at 3% while hiring slows. Outside earnings, Tesla fell 5.1% after Norway’s sovereign wealth fund said it would oppose CEO Elon Musk’s proposed $1 trillion compensation package. Yum Brands jumped 7.3% on reports it may sell its struggling Pizza Hut unit. Oil prices weakened, with U.S. benchmark crude down 31 cents to $60.25 a barrel and Brent crude slipping 28 cents to $64.16. The dollar eased to 153.33 yen, while the euro edged up to $1.1493. Source: AP 

Bangladesh's apparel industry and a high-level delegation of US cotton exporters have agreed to enhance cooperation to leverage a new American executive order that offers proportional tariff concessions for garments made with US raw materials. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Cotton USA delegation agreed on the issue during a meeting held at BGMEA Complex in Uttara on Tuesday (November 4). The meeting focused on utilizing the newly announced US tariff facility to expand bilateral trade and significantly increase the use of American cotton in Bangladesh's textile sector. Under the recent US executive order, Bangladeshi apparel exports to the United States are eligible for a proportional waiver on new additional duties if they contain a minimum of 20 percent US-origin raw materials (such as cotton). BGMEA President Mahmud Hasan Khan welcomed the opportunity, stating, "This new tariff concession creates enormous opportunities for our industry, as it will make our products more competitive in the global market." However, Hasan noted that BGMEA is yet to receive clear guidelines on the procedural steps for local spinners and garment factories to claim this benefit. He urged the US delegation to swiftly secure the necessary clarification from the US administration, enabling entrepreneurs to immediately prepare to utilize the advantage. Currently, approximately 10 percent of Bangladesh’s imported cotton originates from the United States. The BGMEA President expressed confidence that this share could be doubled or even tripled with a change in mindset and a strategic approach. He proposed joint research and knowledge-sharing initiatives to inform spinners and manufacturers about the superior quality and comparative advantages of American cotton, thereby encouraging a higher volume of imports. The US delegation welcomed the proposal and committed to collaboration on this front. Logistics and Documentation Hurdles The discussions also highlighted challenges in the trade flow, with the US delegation citing obstacles and complexities in preparing commercial documentation for cotton exports to Bangladesh. They requested BGMEA's assistance in resolving these issues. In response, the BGMEA President asked the US representatives to provide specific details in writing, assuring them that BGMEA would promptly escalate the matter to the Ministry of Commerce to ensure a swift resolution of the complications. Representatives from Cotton Council International emphasized that the US cotton, known for its sustainability, reliability, and high quality, is perfectly positioned to help Bangladeshi exporters enhance product quality and maximize the new tariff advantage in the US market.

Social Islami Bank PLC (SIBL) has incurred a record net loss of over Tk 1,704 crore in nine months (January-September) of 2025. This marks the largest loss ever reported by the bank since its listing on the stock market in 2000, standing in stark contrast to the net profit of over Tk51 crore recorded in the same period of 2024. According to the bank's unaudited financial report for the third quarter (July-September), the net loss after tax for the nine-month period (Jan-Sep 2025) was Tk704.48 crore, sharply down from the net profit of Tk51.16 crore in the corresponding period of last year. The bulk of the losses accumulated during the third quarter (July-September), which alone saw a net loss of Tk 1,235 crore. This is a drastic increase compared to the Tk28.98 crore loss reported in the third quarter of 2024. The massive loss is primarily attributed to a sharp increase in interest expenses and the requirement for substantial provisioning against loans. Interest Payouts: During the January-September period, the bank paid Tk2,444 crore in interest, representing a 32 percent increase year-on-year. This included Tk 1,552 crore paid to depositors and Tk891 crore to cover borrowing costs. The bank had to set aside Tk401 crore as provisioning against loans and advances. Bangladesh’s banking crisis deepens; audit uncovers Tk 1.55 lakh crore shortfall SIBL also registered an operating loss of Tk 648 crore against its income from shares, brokerage commissions, and other sources. An SIBL official, speaking anonymously, confirmed that the primary driver of the damage was the "intense increase in the cost of funds," mainly due to high interest rates offered on deposits and the higher interest paid on borrowed funds. Provisioning against loans at risk of becoming non-performing also played a negative role.

Bangladesh Bank has issued an urgent directive to all Mobile Financial Service (MFS) providers to immediately stop financial transactions linked to online gambling. The central bank sent letters to 13 MFS operators following instructions from the Information and Communication Technology (ICT) Division, instructing them to take strict measures against this illegal activity. According to the directive, MFS operators are required to:Prepare a list of suspicious accounts involved in gambling transactions.Form a dedicated task force to monitor and prevent illicit financial flows.Implement AI-based monitoring systems to detect and flag gambling-related transactions in real-time. Nagad to be privatised to boost MFS competition: BB GovernorEstablish a public reporting mechanism, including a portal and helpline, for registering complaints related to gambling. Bangladesh Bank has also scheduled a review meeting with seven MFS operators on November 6. The discussion will focus on the effectiveness of current control and monitoring systems, the capacity of MFS providers to implement new measures, and the support needed to curb online gambling transactions.

The country’s two stock markets, the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE), witnessed a decline for the second consecutive day on Tuesday, with overall trading activity dropping. At the DSE, the benchmark DSEX fell 41 points, while the Shariah-based DSES index lost 10 points and the blue-chip DS30 index declined 14 points. Most companies saw their share prices fall. Among traded stocks, 277 companies recorded price increases, 56 companies saw their share prices decline, and 63 companies remained unchanged. Stocks across all three categories — A, B, and Z — trended downward. In the A-category, considered the top dividend-paying companies, 167 companies’ shares declined, while prices of 25 companies rose and 26 remained unchanged. In the block market, shares worth BDT 14 crore of 22 companies were traded, with Khan Brothers PP Woven Bag Industries Limited topping the list by selling shares worth BDT 8 crore. Turnover at the DSE also declined, with shares and units worth BDT 453 crore changing hands compared to BDT 518 crore in the previous session. Monno Ceramic Industries Ltd led the gainers with a nearly 10 percent rise, while Far Chemical Industries Limited fell over 9 percent to top the losers. The CSE followed a similar trend, with the overall CASPI index dropping 91 points. Share prices of most companies fell, with 114 companies’ shares declining, 50 rising, and 27 remaining unchanged. Trading at the CSE stood at BDT 18 crore, down from BDT 24 crore the previous day. FAS Finance & Investment Ltd led the gainers with a 10 percent increase, while Sharp Industries PLC fell over 9 percent to top the losers.

Indices at both the Dhaka and Chattogram stock exchanges edged up in the first hour of trading on Tuesday, with most companies witnessing price gains. The benchmark DSEX index of the Dhaka Stock Exchange (DSE) advanced by 21 points, while the Shariah-based DSES and the blue-chip DS-30 indices rose by 6 points each. Out of 315 issues traded during the first hour, prices of 225 advanced, 28 declined, and 62 remained unchanged. Indices tumble on both bourses amid broad-based sell-off The DSE recorded a turnover of over Tk 65 crore during the period. The Chittagong Stock Exchange (CSE) also saw a modest rise, with its broad index gaining 1 point. Of the 22 issues traded, 14 gained, 6 declined, and 2 remained unchanged, with turnover crossing Tk 7 crore in the first hour.  

Stocks witnessed a major setback on Monday as both Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) closed sharply lower, with most issues ending in the red. At the DSE, the benchmark DSEX Index dropped 54 points, while the Shariah-based DSES Index shed 12 points and the blue-chip DS30 Index declined by 21 points. Market breadth remained overwhelmingly negative as prices fell for 300 securities, while only 45 advanced and 53 remained unchanged. Across all three categories — A, B, and Z — most shares declined. In the A-category, which includes the best-performing and highest dividend-paying companies, 166 issues lost value, while only 25 gained and 28 remained unchanged. Block market transactions amounted to Tk 29 crore involving 23 companies, with Prime Bank PLC leading the block trade segment with sales exceeding Tk 10 crore. The turnover on the DSE also slipped, totaling Tk 518 crore compared to Tk 544 crore in the previous session. National Tubes Limited topped the day’s gainers, soaring 7%, while Fareast Finance & Investment Limited plunged over 10%, becoming the day’s worst performer. Stocks at DSE, CSE open higher The bearish sentiment extended to the CSE as well, where the CASPI Index dropped 87 points. Out of the traded issues on the port city bourse, 126 declined, 42 advanced and 25 remained unchanged. Despite the fall in indices, trading activity on the CSE picked up, with turnover rising to Tk 24 crore from Tk 16 crore in the previous session.  

The Bangladesh Jewellers Association (BAJUS) on Monday announced its 35-member executive committee for the 2025–26 and 2026–27 terms. The new committee was unveiled at the association’s head office by Election Board Chairperson Nasrin Fatema Auwal, who expressed optimism, saying, “The current BAJUS committee will be even more successful than the previous one.” Enamul Haque Khan, owner of Diamond & Divas Jewellery, has been elected as the new President of BAJUS. Sananda Jewellers Limited owner Ranjit Ghosh was elected Senior Vice President, while Azad Ahmed, Abhi Roy, and Iqbal Hossain Chowdhury were chosen as Vice Presidents. Amit Ghosh will serve as Treasurer. In his first remarks as President, Enamul Haque said gold traders are often wrongly associated with smugglers. Swinging gold price: BAJUS hikes rates just days after a cut “No genuine gold trader is a smuggler,” he said, pledging to work towards reducing VAT on gold to 1.5 percent. “In India, VAT on gold is 2 percent, while in Bangladesh it is higher. Until the import issues are resolved, we’ll continue pushing for the reinstatement of baggage rules,” he added. The newly elected BAJUS committee is expected to officially assume office by December 15.

Abu Dhabi hosted a major oil summit Monday, shortly after OPEC+ announced it would halt planned production increases for the first quarter of 2026, citing concerns over oversupply in the market. The decision follows recent oil sanctions imposed by the United States and the United Kingdom on Russia over the Ukraine war. Targets included Rosneft and Lukoil, whose logo prominently appeared at the Abu Dhabi International Petroleum Exhibition and Conference, a key sponsor of the event. Despite the war, the UAE has maintained strong ties with Russia and has acted as an intermediary between Kyiv and Moscow in prisoner exchange negotiations. OPEC+ had met Sunday and agreed to boost production by 137,000 barrels per day starting December but said adjustments planned for January through March would be paused “due to seasonality.” The group includes core OPEC members and allied nations, notably Russia. Benchmark Brent crude traded around $65 per barrel Monday, down from a post-COVID peak of about $115 after Russia’s 2022 invasion of Ukraine. Prices recently slipped to $60 amid concerns of excessive supply. “Yes, OPEC+ is blinking, but it’s a calculated move,” said Jorge León, head of geopolitical analysis at Rystad Energy. “Sanctions on Russian producers have added uncertainty to supply forecasts. Pausing production protects prices, signals unity, and buys time to gauge the impact of sanctions on Russian barrels.” OPEC+ extends output cuts to support oil prices Meanwhile, the U.S. administration continues to advocate for increased domestic production. Interior Secretary Doug Burgum, former governor of North Dakota and chair of Trump’s National Energy Dominance Council, attended the summit. The average U.S. gasoline price stood at $3.03 per gallon Monday. The ADIPEC oil conference follows last year’s COP28 climate talks in the UAE, where nearly 200 countries pledged to reduce reliance on fossil fuels. Nevertheless, the UAE plans to raise its oil production capacity to five million barrels per day while expanding clean energy initiatives domestically. Source: AP