United News of Bangladesh

Bangladesh Bank (BB) on Thursday issued new directives restricting corporate shareholding in banking companies and setting eligibility criteria for appointing representative directors to bank boards. The Banking Regulation and Policy Department-2 (BRPD-2) of the central bank issued the instructions through BRPD Circular No. 06, signed by its Director Md Bayzid Sarkar. The circular was sent to the chairmen, boards of directors, and managing directors or chief executive officers of all scheduled banks operating in Bangladesh for immediate implementation. The central bank stated that the directives aim to ensure transparency and stability in bank ownership structures, reduce disproportionate investments relative to a corporate shareholder’s financial capacity, enforce accountability among representative directors, and safeguard depositors' interests. Under the circular, no company will be allowed to hold bank shares, at purchase value, in one or more banking companies exceeding its own net worth. Companies currently holding bank shares beyond their net worth must bring their shareholding down to the permissible limit within six months from the issuance of the circular. A representative director nominated by a shareholder company to a bank board must be either the managing director or a director of that shareholder company. Before being nominated as a representative director, the individual must hold an unencumbered paid-up capital shareholding of at least 2 percent in the case of a listed public limited company, or at least 20 percent in the case of other companies, under their own name. This minimum unencumbered ownership must be maintained throughout their tenure as a representative director. When seeking Bangladesh Bank's prior approval for the appointment, reappointment or replacement of a representative director, banks must submit supporting legal documents proving the nominee's ownership stake in the shareholder company. The new criteria will strictly apply to any future reappointment or change of representative directors currently serving on bank boards. Bangladesh Bank instructed bank management to place the contents of the circular before their respective board meetings to inform directors and initiate necessary action. Banks were also directed to bring these rules to the attention of all relevant officials and shareholders.  

The Consumers Association of Bangladesh (CAB) on Thursday said it will intensify its campaign against adulterated products and step up pressure on the government to curb electricity theft as it presented a progress report on its 2025-26 annual work plan. The report, covering September 2025 to August 2026, was unveiled at a press conference at the CAB's central office in Segunbagicha. CAB President AHM Shafiquzzaman, who spoke as the chief guest, said the organisation has made progress in the 16 priority areas identified in its work plan, with district and upazila committees becoming more active and work underway to reform its constitution. He said CAB lacks its own office and has written to the Housing and Public Works Department seeking one, adding that the organisation has received Tk 1 crore from the Ministry of Finance as part of efforts to build a fund. "Consumer interest must get top priority. We do not want to side with dishonest businessmen," Shafiquzzaman said, adding that CAB is working with development partners GAIN and ESDO as well as international organisations, and will take seriously any threats faced by those working at the field level. On electricity, he said CAB has held hearings over excessive charges, and demanded a halt to power theft, but the government has yet to take adequate steps, adding that CAB will keep up pressure on the authorities over the issue. The CAB president said their organisation ran issue-based campaigns nationwide, including a recent protest in Chattogram against a hike in transport fares, and is working to prevent child labour, noting that around 12 lakh children in Bangladesh are engaged in hazardous work and about 50 lakh in child labour overall. Outlining future plans, he said CAB will expand its social media activities, organise consumers, and prioritise preventing adulterated goods from entering the market through a stronger anti-adulteration drive. Shafiquzzaman said it will also prepare area-wise price lists for products and relaunch its publication "Bhokta Kantho" in a new format. CAB Executive Director Ahmed Ekramullah, presenting the progress report, said the organisation has strengthened its organisational structure by reforming 60 district committees and is working with the Bangladesh Food Safety Authority and the Directorate of National Consumers’ Right Protection, among other bodies, to raise public awareness. He said CAB is also engaging universities and young people, running health-related programmes in various districts, and has joined the Power in AI initiative, besides working on child labour prevention and holding consultations with stakeholders across the country's divisions. CAB Secretary General Humayun Kabir Bhuiyan, who chaired the event, said the government involves CAB in various initiatives, including a case concerning the theft of luggage at the airport. "We are not enemies of businessmen; we work against dishonest ones.”

Gas supply in the country  has improved and no garment factory has shut down so far due to the recent energy crisis, said Mahmud Hasan Khan, President of Bangladesh Garments Manufacturers and Exporters Association (BGMEA) on Thursday. Speaking at a press conference at the BGMEA Complex in Uttara, he said while immediate closures have been avoided the true economic impact of the energy crunch will become clear in three to four months. The press conference was organised to brief the media on 'BATEXPO 2026', an upcoming Hong Kong roadshow, and the current state of the RMG sector. He explained that impact on the garment sector is never instantaneous, as shuttering a factory requires roughly six months of planning to finish existing orders in the pipeline, clear legal compensations for workers, and settle outstanding banking liabilities. Therefore, any factory closure occurring today due to incidents from six months or a year ago should not be attributed to the current energy crisis. The BGMEA President said low gas pressure severely disrupted backward linkage sectors, particularly dyeing and washing units.  However, following a recent meeting between the business community and the Prime Minister, the government announced the restoration of industrial gas supply to previous levels, which has already taken effect. During normal times, garment factories operate for 8 to 10 hours daily and due to the gas shortage, many units had to spend nearly five additional hours and rely on alternative fuels to maintain operations, driving up the cost of doing business to meet shipment deadlines. To maintain a stable gas supply, BGMEA has submitted a presentation to the Ministry of Energy outlining short-, medium-, and long-term plans, which it believes could resolve major energy issues within two years if implemented. To ensure long-term energy security, BGMEA pressed for two additional Floating Storage Regasification Units (FSRUs), while emphasising a transition toward land-based LNG storage terminals. Noting that an agreement has already been reached to bring one FSRU from China on a G2G basis, Mahmud Hasan Khan said rather than adding multiple FSRUs, BGMEA favours land-based storage. He stressed that simply adding FSRUs without upgrading the gas distribution network will not deliver expected benefits, calling for simultaneous modernisation of distribution pipelines. BGMEA’s additional demands include top priority for gas connections and rationing for SME factories, low-interest "green loans" to promote renewable energy adoption and  accelerated offshore and onshore gas exploration in coastal areas. On LDC graduation, the BGMEA President expressed optimism that the United Nations General Assembly will approve the government’s initiative to extend Bangladesh’s transition period by three years later this month. He noted that an extra three years would provide crucial preparation time to tackle post-LDC challenges. The private sector is actively engaged in the process through regular progress reviews led by the Economic Relations Division (ERD) under the Ministry of Finance. Regarding post-LDC market access, Mahmud Hasan Khan underscored that securing a Free Trade Agreement (FTA) with the European Union—rather than GSP Plus—is the sector's top priority. BGMEA also called for modernising company and customs laws to improve the ease of doing business, expediting FTAs and Economic Partnership Agreements (EPAs), and ensuring at least five years of special policy support and tariff continuity post-LDC graduation. In its efforts to diversify export destinations, BGMEA highlighted that non-traditional markets now generate around $8 billion out of Bangladesh’s total $40 billion RMG export basket outside the US, EU, and Canada. To attract new global brands, BGMEA will participate in a roadshow organised by HSBC in Hong Kong. Additionally, BGMEA is launching a dedicated "Japan Desk" staffed with Japanese-speaking officers to ease communication with buyers. The organization aims to scale exports to Japan from the current $500 million to $2–2.5 billion in the coming years. BGMEA also announced a strategic agreement with the Bangladesh Brand Forum to showcase Bangladesh’s apparel industry on the global stage as an innovation-driven, modern sector rather than merely a low-cost manufacturing hub.

Asian markets were mixed Thursday after Wall Street ended lower following the US Federal Reserve's decision to raise interest rates for the first time in three years. US stock futures were higher in early trading. The Fed raised its key interest rate by a quarter percentage point to a target range of 3.75%-4.00% as it seeks to bring US inflation, which has remained above its target, under control. Japan's Nikkei 225 rose 0.2% to 64,067.53, while South Korea's Kospi gained 0.9% to 6,778.49. Hong Kong's Hang Seng Index fell 0.7% to 24,533.46, and the Shanghai Composite declined 0.4% to 3,877.46. Australia's S&P/ASX 200 advanced 0.3% to 8,718.20. Taiwan's Taiex climbed 1.3%, while India's Sensex edged up 0.3%. On Wednesday, the S&P 500 fell 0.5%, while the Dow Jones Industrial Average dropped 1.2%. The technology-heavy Nasdaq Composite was little changed. The market reaction was largely in line with expectations because the Fed's rate increase had been widely anticipated, said Lorraine Tan, director of equity research for Asia at Morningstar. However, she said the ongoing war in Iran could continue to put pressure on inflation. After the Fed's announcement, the yield on the two-year US Treasury note rose to 4.72%, compared with about 4.67% late Tuesday. The yield on the 10-year Treasury remained elevated at around 5.00%. US government bond yields have stayed higher since the war began, as an energy shock linked to the conflict has increased inflationary pressure. Investors are also concerned about rising US government debt. The US dollar weakened early Thursday to 156.04 Japanese yen from 156.26 yen. The euro rose slightly to $1.1467 from $1.1465. Oil prices edged higher as oil flows through the Strait of Hormuz remained limited. The narrow waterway is a key route for global oil shipments. Oil supply pressures have also increased after Saudi Arabia shut down a major oil pipeline while repairs are carried out. Brent crude, the international benchmark, was up 0.1% at $105.89 early Thursday.

The National Board of Revenue (NBR) has further cut the tax on imports of equipment and parts used for solar power generation to 1% to facilitate the expansion of renewable energy. Under a notification issued Wednesday, importers will be exempted from customs duty above 1%, regulatory duty, supplementary duty, value-added tax (VAT), advance tax and advance income tax on specified solar power-related equipment and parts. The facility will remain effective for 180 days from the date of issuance of the notification. The NBR said the latest measure was taken against the backdrop of the global energy crisis and electricity shortages, with a view to expanding solar power generation rapidly. In the national budget for the 2026-27 fiscal year, the government had already exempted key solar power-related equipment from import duty, regulatory duty and advance tax through SRO No. 159-Law/2026/14-Customs, issued on June 8, 2026. Following that exemption, imports of the equipment were subject to a total tax burden of 17%, comprising 15% VAT and 2% advance income tax. The latest decision will bring the total tax burden down to 1%. The NBR also extended the facility to commercial importers, who were previously excluded from the tax benefits for importing solar power-related equipment and parts. Commercial importers will receive the exemption from duties and taxes beyond the 1% customs duty, subject to specified conditions, for 180 days from the date of issuance of the notification. The NBR said the measure will help reduce the cost of solar power projects and speed up the addition of new electricity generation capacity. It also expects the move to reduce dependence on fossil fuels and strengthen the country’s energy security and sustainable economic development.

Bangladesh Bank (BB) has issued new instructions to streamline Export Development Fund (EDF) loan applications, aligning the overdue status of local back-to-back Letters of Credit (LCs) with the permissible 270-day grace period (deferred payment). The central bank’s Foreign Exchange Policy Department-1 (FEPD-1) issued a directive to all Authorized Dealers (ADs) in foreign exchange on Wednesday. According to the circular, signed by FEPD-1 Director (Current Charge) Dr. Md. Abu Bakkar Siddique, Authorized Dealers will now consider EDF financing for bulk imports to eligible producers provided that local delivery bills against back-to-back LCs do not remain outstanding beyond 270 days. The central bank noted that the decision was taken to ensure consistency between the maximum deferred payment period and the process of determining overdue status for deemed exporters. Under previous instructions, ADs were required to verify the overdue status of deemed exporters before applying for EDF loans. Meanwhile, earlier guidelines issued on August 13 allowed the opening of back-to-back import LCs on a deferred payment basis for up to 270 days. Bangladesh Bank clarified that all other existing instructions regarding EDF loan operations will remain unchanged.

Asian stocks were mostly higher Wednesday despite declines on Wall Street, as investors awaited the US Federal Reserve's decision on interest rates, with expectations high that it will raise rates. US stock futures also edged higher. Markets widely expect the Fed to raise interest rates Wednesday for the first time in three years as US inflation remains elevated and above the central bank's target. Japan's Nikkei 225 rose 0.7% to 63,923.00, despite official data showing the country recorded its fourth straight monthly trade deficit in August. South Korea's Kospi gained 1.4% to 6,717.97, while Hong Kong's Hang Seng edged up 0.2% to 24,715.18. The Shanghai Composite Index advanced 0.7% to 3,891.60. AI-related stocks remained volatile after US technology leaders called for slower development of artificial intelligence to improve safety. SoftBank Group, a major investor in OpenAI, fell 1.5% after gaining 7.5% the previous day. Tokyo Electron, which makes chip manufacturing equipment, rose 2.1%, while Japanese memory chipmaker Kioxia Holdings declined 1.9%. South Korea's SK Hynix gained 4.1%, while Samsung Electronics rose 2%. Taiwan's Taiex advanced 0.7%, while TSMC, Taiwan's leading AI chipmaker, slipped 0.2%. Australia's S&P/ASX 200 rose 0.3% to 8,696.50, while India's Sensex gained 0.5%. Oil prices declined early Wednesday after rising the previous day, as tensions between the US and Iran continued and the closure of a key Saudi oil pipeline added to concerns over global supplies. Brent crude, the international benchmark, fell 0.9% to $107.76 a barrel, although it remained well above the roughly $72 level recorded before the war began in late February. US benchmark crude dropped 1.5% to $104.24 a barrel. On Tuesday, Wall Street's S&P 500 fell 0.5%, while the Dow Jones Industrial Average declined 0.6%. The technology-heavy Nasdaq Composite lost 0.8%. US AI stocks showed signs of stabilizing. Nvidia gained 0.6%, while Advanced Micro Devices rose 2.2%. Rising US Treasury yields have also weighed on stocks. Bond yields have increased as the energy crisis caused by the Iran war has added to inflationary pressure, while the US national debt has continued to grow. The yield on the 10-year Treasury note was close to 5% early Wednesday after briefly reaching 5.04% this week, its highest level in years. In currency trading, the US dollar fell to 154.93 Japanese yen from 155.10 yen. The euro rose to $1.1554 from $1.1544.

Global credit rating agency Moody's Ratings (Moody's) on Tuesday changed the outlook on Bangladesh to “stable” from “negative”, citing eased acute political and external pressures that have left risks more balanced. Concurrently, Moody's affirmed Bangladesh's long-term issuer and senior unsecured ratings at B2, and affirmed its short-term issuer ratings at “not prime”. The shift to a stable outlook reflects reduced political uncertainty following the post-election transition and a strong governing mandate, alongside an improved external position, the agency said. Foreign exchange reserves rebuilt to around $32.9 billion by mid-2026 – covering over four months of imports – up from about $21.4 billion at end-2024. The growth was supported by record remittances through formal channels, a more flexible exchange rate regime, and central bank foreign exchange purchases. Moody's projected real GDP growth to recover gradually, reaching 4.3 percent in fiscal year 2026-27 before picking up to around 4.9 percent from FY28 as investment and industrial activity normalise, up from 4.1 percent in FY26 and 3.5 percent in FY25. Inflation is expected to stay around 9 percent before easing slowly. The affirmation of the B2 rating balances Bangladesh's long-term growth potential – backed by favourable demographics, a large and diversified economy, and a competitive ready-made garment (RMG) sector – against structural vulnerabilities. These include a narrow government revenue base, weak debt affordability with interest payments absorbing close to 30 percent of government revenue, and significant weaknesses in banking sector asset quality. Addressing banking sector challenges, Moody's noted that recent reforms, including asset quality reviews, deposit protection legislation, and a medium-term resolution strategy developed with the International Monetary Fund (IMF), have disclosed system-wide non-performing loans (NPLs) estimated at around 32.8 percent. Recapitalisation needs to restore regulatory capital adequacy are estimated at roughly 10 percent of GDP to be phased over several years. However, system-wide deposits grew by around 12 percent year-on-year to March 2026, signalling that banking sector weaknesses remain primarily a solvency rather than a liquidity challenge. Moody's maintained Bangladesh's local-currency (LC) and foreign-currency (FC) ceilings at Ba3 and B2, respectively. Continued engagement with the IMF and other international financial institutions remains a vital anchor for external financing and structural reform momentum.  

The Dhaka Stock Exchange (DSE) PLC and Swisscontact jointly organized a workshop titled “Expanding RMG’s Financing Horizons: Opportunities in the Capital Market” at the DSE Training Academy on Wednesday to explore long-term capital market financing for the ready-made garment (RMG) sector. The event brought together senior officials from leading member institutions of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), along with key capital market stakeholders. Delivering the opening remarks, DSE Managing Director Nuzhat Anwar emphasized that the capital market serves as a vital source of long-term financing for economic growth and private sector expansion. She stressed the need to expand beyond initial public offerings (IPOs) and equity markets into bond markets, calling for effective measures to bridge the gap between private sector financing demands and capital market capacity.  She added that DSE is actively working to build a transparent, business-friendly market by identifying regulatory constraints and addressing entrepreneur needs. Farzana Amin, Team Leader of Swisscontact’s PROGRESS project, stated that Swisscontact plans to provide end-to-end support to RMG companies interested in entering the capital market, with a goal to develop several role-model firms over the next year to encourage wider participation. BKMEA Deputy Secretary Md. Harunur Rashid noted that Bangladeshi industrial enterprises remain heavily dependent on bank loans, which restricts expansion. He highlighted the capital market as an effective alternative for long-term financing that can accelerate growth and job creation, provided listed companies maintain sustainable business practices to retain investor confidence. Iftekhar Alam, President of the Bangladesh Merchant Bankers Association (BMBA) and CEO of LankaBangla Investments, presented on listing processes, equity capital raising, valuation, and qualification criteria for both Main Board IPOs and SME Board Qualified Investor Offers (QIO). Additionally, Sayeed Mahmud Zubaer, General Manager of DSE's Market Development Division, delivered a presentation on capital market structures, DSE infrastructure, bond markets, direct listing opportunities, and corporate governance benefits. During the closing session, DSE Chief Technology Officer Dr. Md. Asifur Rahman stated that DSE is offering one-to-one counseling and advisory services to guide entrepreneurs through the listing process. Bidowra Tahmin Khan, Team Leader of Swisscontact’s INSPIRE project, added that Swisscontact will coordinate with DSE, the Bangladesh Securities and Exchange Commission (BSEC), and other stakeholders to offer technical and advisory support to promising RMG and textile companies. The workshop was also attended by Swisscontact Bangladesh Deputy Country Director Syeda Ishrat Fatima, alongside senior representatives from DSE and partner organizations.  

Bangladeshi expatriates sent home $1.526 billion in remittances during the first 14 days of September, according to the latest data from Bangladesh Bank. This reflects a 3.4 percent growth compared to $1.475 billion received during the corresponding period last year. On September 14 alone, the country received $98 million in remittances. With the latest figures, total remittance inflows between July 1 and September 14 in fiscal year 2026-27 reached $7.351 billion, marking a 15.3 percent year-on-year growth from $6.375 billion collected during the same period of FY26.