United News of Bangladesh

The U.S. and other wealthy nations need to urgently tackle mounting global debt levels that are weighing most heavily on low-income countries and straining the global financial system, the head of the International Monetary Fund said Wednesday. IMF Managing Director Kristalina Georgieva said Treasury Secretary Scott Bessent and other U.S. leaders recognize that the federal deficit and national debt are too high. But economic growth alone would not be enough to address the country’s more than $40 trillion in national debt, she said. Meanwhile, rising bond yields, reflecting higher premiums demanded by investors for taking on greater risk, have been disrupting financial markets. “We believe that growth, of course, helps, but it cannot deliver fast enough the necessary adjustments,” Georgieva said at the autumn meeting of the IMF and World Bank in Bangkok. “There is no magic,” she said, adding that other measures would be needed. “You have to go in a direction of tightening, bringing it down, bringing the deficit down.” ‘Fiscal consolidation’ faces challenges Rising debt levels and global inflation, partly resulting from high energy costs due to the Iran war, have pushed interest rates to multidecade highs, adding to the burdens of the world’s poorest nations. Efforts to bring debt under control with what Georgieva and other experts call “fiscal consolidation” have suffered setbacks from heavy spending during the COVID-19 pandemic and since. “Fiscal risks are rising, and a proper reaction is largely absent in many countries,” said Rodrigo Valdes, director of the IMF's Fiscal Affairs Department. “And in major advanced economies, the effect of fiscal indiscipline does not stop at the border. It travels to the rest of the world.” “Among the world’s poorest countries, interest payments have reached historic highs relative to revenue, and declining amounts of aid are creating gaps that some countries have been unable to finance,” the IMF's latest Fiscal Monitor said. That is forcing countries to make hard choices between supporting their most vulnerable people and meeting their debt repayment obligations. “The Global South is paying the price for rising interest rates in wealthier countries,” U.K. Foreign Secretary Ed Miliband said at an event on the sidelines of the IMF meetings. “We need a new deal on debt, a deal that supports countries to repay over longer time horizons and, crucially, refinancing with better rates to give developing countries precious fiscal space,” he said. Nations need help with job creation and investment The median developing country pays three times as much in interest as developed countries, said Alexander De Croo, former Belgian prime minister and administrator of the United Nations Development Programme (UNDP). On average, nearly 10% of government spending goes toward debt repayments. High fuel and fertilizer prices, the effects of the El Niño weather phenomenon and rising borrowing costs have left many low-income countries with little room to recover. “I mean, we don’t see really a light at the end of the tunnel,” De Croo told The Associated Press. Creating jobs is another top priority, particularly as the growing use of artificial intelligence threatens to make many traditional occupations obsolete. More than 1.2 billion young people are expected to enter the global workforce over the next decade or so, while forecasts suggest only 400 million net new jobs will be created. The UNDP this week announced its “Jobs for Prosperity” initiative to bring together governments, development banks — such as the World Bank — and private businesses to encourage investment in sectors such as tourism, healthcare and food processing. The initiative and related efforts will help countries attract investment by strengthening governance and policies and developing pipelines of “investible projects,” De Croo said. “These are things that are feasible. It’s been proven that you can do it in many places of the world,” he added. Separately, the IMF, Bank of Thailand and World Bank Group announced a “Bangkok Blueprint” on Wednesday to combat cybercrime, financial fraud and online scams. The announcement came a day after cyberattacks caused refrigeration systems to overheat at hundreds of stores in France.

The government plans to develop the Bangladesh Standards and Testing Institution (BSTI) into an internationally recognised standards body after Bangladesh graduates from the least developed country (LDC) category, Industries Minister Khandaker Abdul Muktadir said on Wednesday. "A BSTI multiplex is being built at a cost of Tk 800 crore, and a BSTI metrology laboratory is being set up at a cost of Tk 450 crore," the minister said while speaking at a programme organised by the BSTI on Bailey Road to mark World Standards Day. The minister said the government will build BSTI on a par with leading international standards organisations, and has already taken steps to increase its manpower. "The government's top priority is to ensure that people have no doubt or fear about the quality of products, especially food items. The government will ensure product quality at any cost," he said. Referring to recent media reports on the presence of the heavy metal lead in soybean oil, he said the BSTI conducted 193 different tests on the matter. "No test found any trace of heavy metal in soybean oil. I can assure you that soybean oil in Bangladesh meets the required standards and people can use it without any worry," he said. Muktadir said the government is also putting emphasis on the quality and accurate measurement of all products, not only food items but also fuel oil and LPG.

Asian shares mostly declined on Wednesday as investors traded cautiously, although continued demand for computer chips and artificial intelligence (AI) technology provided some support to global markets. Japan’s benchmark Nikkei 225 fell less than 0.1% to close at 67,744.29. Australia’s S&P/ASX 200 dropped 0.6% to 8,727.90, while South Korea’s Kospi declined 0.4% to 6,008.81 after recent volatile trading. Hong Kong’s Hang Seng Index slipped less than 0.1% to 24,342.52, while the Shanghai Composite fell nearly 0.9% to 3,767.23. On Wall Street, major US stock indexes ended Tuesday with little change, remaining close to their record levels. Investors assessed the latest corporate earnings reports, with several companies reporting better-than-expected profits, although gains in some stocks were offset by losses in others. The S&P 500 fell less than 0.1%, moving slightly further away from its record high set last week. The Dow Jones Industrial Average dropped 180.45 points, or 0.3%, to 51,670.10, while the Nasdaq Composite declined 41.52 points, or 0.2%, to 27,204.38. The S&P 500 lost 1.79 points to finish at 7,805.45. Goldman Sachs shares initially surged more than 4% after the bank reported third-quarter profits that significantly exceeded analysts’ expectations. However, the gains quickly disappeared, and the stock fluctuated between positive and negative territory before closing down 0.2%. Investors are closely watching corporate earnings as analysts expect profits at companies in the S&P 500 to grow nearly 30% in the third quarter compared with the same period a year earlier, according to FactSet. Companies may need to meet these high expectations to justify the strong gains in their share prices, despite concerns over persistent inflation, rising pressure from the bond market and conflicts in the Middle East. Investors have also raised concerns that share prices of chipmakers may have risen too far amid enthusiasm over AI technology. China’s memory chipmaker CXMT, which is making progress that could increase competition for major industry players, initially gained in Asian trading on Wednesday before giving up its gains. Shares of South Korea’s Samsung Electronics also rose early in the session before losing momentum, while SK Hynix shares declined. In the bond market, US Treasury yields eased after oil prices fell. The yield on the 10-year Treasury note slipped to 5.21% from 5.24% late Friday. The US bond market was closed on Monday for a public holiday. Yields declined after Brent crude prices fell 0.9% to $105.69 a barrel. Oil prices have fluctuated amid uncertainty over when conflicts in the Middle East will allow global energy supplies to return to normal. In energy trading on Wednesday, benchmark US crude rose 0.21% to $94.34 a barrel, while Brent crude, the international benchmark, gained 0.15% to $105.85 a barrel. In currency trading, the US dollar edged down to 158.25 Japanese yen from 158.32 yen. The euro rose to $1.1212 from $1.1203.  

State-owned Sonali Bank has extended a Tk 7,000 crore loan to private sector National Bank under a Bangladesh Bank guarantee to help the struggling lender clear customer dues and resume normal banking operations starting on Thursday. According to central bank sources, depositors had been unable to withdraw their funds from National Bank for an extended period, prompting four depositors to approach the court. Following the court's directive instructing the bank to return the depositors' money, the matter drew the attention of high-level government authorities, who subsequently directed Bangladesh Bank to take steps to normalise the bank's transactions. Following a meeting between Bangladesh Bank Governor Md Mostaqur Rahman, National Bank Chairman Prof Melita Mehzabein and acting Managing Director Zahidul Haque, the central bank decided to provide liquidity support. The directive was later endorsed during a meeting of National Bank's Board of Directors. Sonali Bank Managing Director Shawkat Ali Khan said the bank extended the loan to National Bank at a 10 percent interest rate backed by a Bangladesh Bank guarantee. Under the agreement, if National Bank fails to repay the loan on time, Bangladesh Bank will reimburse Sonali Bank within three days of the loan's maturity. Central bank data reveals that National Bank previously borrowed Tk 985 crore from various banks, which it failed to repay on time, leaving the liability with Bangladesh Bank. Currently, Bangladesh Bank's total claims on National Bank stand at Tk 10,568 crore. National Bank fell under severe financial distress following years of control by the Sikdar Group during the Awami League regime. Following the political changeover in 2024, the group lost control of the bank through central bank intervention. The bank is currently managed by members associated with the Multimode Group, Hosaf Group, and Armana Group, and has been incurring losses annually since 2022. According to Bangladesh Bank statistics, 56.44 percent of National Bank’s total disbursed loans are currently classified as non-performing, amounting to approximately Tk 24,000 crore. The bank faces a provision shortfall of nearly Tk 20,000 crore and recorded a net loss of Tk 1,706 crore in 2024.

Suzuki Bangladesh (Rancon Motorbikes Limited) has officially introduced the much-awaited Suzuki V-Strom SX 250 adventure-tourer motorcycle to the local market. The dynamic new model was unveiled amidst thousands of bikers and motorcycle enthusiasts during the grand ‘Suzuki Day 2026’ event held at the Bangladesh-China Friendship Exhibition Center (BCFEC) in Purbachal on Tuesday. The regular market price (MRP) for the new V-Strom SX 250 has been set at BDT 4,49,950. However, to celebrate the official launch, a special introductory offer has been announced that customers who pre-book or purchase the motorcycle by October 31, 2026, can avail a TK 20,000 discount, securing it at a special price of TK 4,29,950. The day-long mega event featured an array of exciting activities for attendees, including live stunt shows, a dirt race, DJ performances, and a dedicated biking accessories exhibition. The evening’s main attraction was a vibrant live concert featuring legendary rock bands James, Warfaze and Carnival, whose energetic performances thrilled the audience.

MG Bangladesh officially unveiled its flagship all-electric S6 EV at the Bangladesh–China Friendship Conference Center through a distinctive showcase combining traditional Bangladeshi craftsmanship with modern electric mobility. The highlight of the event was a 50-foot continuous Nakshi Kantha installation extending seamlessly from a couture dress to the vehicle. Conceptualized by Creative Director Asad Sattar and his agency Kulture-kantha, the presentation connected the country's cultural heritage with automotive innovation through an elaborate visual display. The vehicle was unveiled by Kashfia Arfa, the first Bangladeshi female racer to compete in an international FIA motorsport event. The showcase featured Nakshi Kantha couture designed by Samaha Subah, CEO and Founder of SIZ, with choreography by Mahmudul Hasan Mukul. Fashion personalities Jessia Islam and Shirin Akther Sheela also participated in the runway presentation, bringing together fashion, craftsmanship, and electric mobility in a celebration of Bangladeshi creativity.

Bangladesh’s economic growth is projected to slow down further while inflation faces an upward trajectory in the current fiscal year, according to the latest World Economic Outlook of International Monetary Fund (IMF) released during the IMF-World Bank Annual Meetings. The 2026 Annual Meetings are taking place in person from October 12 through October 18 in Bangkok, Thailand. In its latest projections, the IMF forecasts that Bangladesh's Gross Domestic Product (GDP) growth could dip to 3.2 percent in the fiscal year 2026-27. Concurrently, average inflation is expected to rise to 10.9 percent during the same period, stoking fresh concerns over economic recovery, purchasing power, and investment climates. For the preceding FY26, the IMF estimates final GDP growth to settle at 3.6 percent, with average inflation projected at 8.7 percent. This indicates that the current fiscal year will likely compound economic pressures through both subdued growth and heightened inflationary burdens. Globally, the IMF projects world economic growth at 3.1 percent in 2026 and 3.4 percent in 2027. Global average inflation is expected to stand at 4.7 percent in 2026, easing to 4.1 percent in 2027. The latest outlook aligns with recent assessments by the World Bank, which highlighted persistent challenges in Bangladesh's economy, including sluggish private investment, weakened employment generation, energy and gas shortages impacting industrial output, and rising non-performing loans and capital shortfalls within the banking sector. Both global lenders have underscored the critical need for comprehensive structural reforms, focusing on restoring stability in the financial sector, ensuring energy security, enhancing revenue collection, and rationalising broad subsidies to redirect targeted support towards vulnerable and low-income populations. The Annual and Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group each year bring together central bankers, ministers of finance and development, private sector executives, civil society representatives, and academics to discuss the state of the global economy and issues of international concern, such as the growth outlook, financial stability, and poverty reduction.

State-owned Shariah-based Sammilito Islami Bank PLC recently held the 16th meeting of its Board of Directors at the board room of the bank’s head office in Motijheel. Quazi Shairul Hassan, Chairman of the Board of Directors, presided over the meeting, according to a press release. Board members Lt. Col. (Retd.) Md. Khan Sobayel Bin Rafiq  Asma Akhter,  KM Zakaria, and Mohammed Ahsan Habib Chowdhury, Managing Director Abedur Rahman Sikder and Company Secretary (CC) Md. Monirul Islam attended the meeting. During the meeting, the board reviewed the bank's overall operational activities and approved several investment proposals. Furthermore, the management team received necessary directives to accelerate recovery drives and ensure the smooth continuation of regular banking operations.

Bangladesh has sought the Netherlands’ cooperation in advancing a proposed Free Trade Agreement (FTA) with the European Union (EU) and expanding trade facilities in the European market after the country’s graduation from the least developed country (LDC) category. Commerce Minister Khandakar Abdul Muktadir sought support during a bilateral meeting with visiting Dutch Minister for Foreign Trade and Development Cooperation Sjoerd Sjoerdsma at his office on Tuesday. He also stressed the need to take economic relations between Bangladesh and the Netherlands to new heights through Dutch technology and investment in agriculture, the jute industry, energy, ports and water management in Bangladesh. The Dutch side showed a positive approach towards exploring opportunities to expand cooperation in agricultural and industrial technologies, renewable energy, port infrastructure and water management, according to a PID handout. Muktadir, also the industries, textiles and jute minister, described the Netherlands as a longstanding friend of Bangladesh and an important development partner. There is scope for transforming bilateral relations beyond conventional trade into a stronger economic partnership through technology transfer, industrialisation, export diversification and sustainable investment, he said. The commerce minister said both countries could benefit from combining Bangladesh’s production capacity and promising market with the Netherlands’ technological excellence and experience. Highlighting the importance of maintaining Bangladesh’s export competitiveness after it graduates from the LDC category, he said Europe is one of Bangladesh’s most important export markets. Muktadir stressed the need to strengthen institutional and policy support to ensure long-term market access and expand trade with Europe. He also underscored the importance of advancing technical discussions on the proposed FTA with the EU and removing non-tariff barriers. Cooperation in agriculture and food processing received particular attention during the meeting. The commerce minister said the Netherlands’ advanced seed technology, research and experience in modern agricultural management could create new opportunities for Bangladesh’s agricultural sector. He said the two countries could undertake joint initiatives to improve the quality and productivity of potatoes and other vegetables, produce exportable agricultural goods in compliance with international standards and explore new markets. On cooperation in the jute industry, Muktadir said growing global demand for environment-friendly products is creating new market opportunities for Bangladesh’s jute and jute-based goods. Dutch technological assistance could play an important role in developing improved jute seeds, increasing productivity, establishing joint research laboratories and producing diversified jute products, he said. The commerce minister also highlighted the potential of higher value addition in the sector through environment-friendly packaging and blended-fibre fabrics. Dutch Minister Sjoerd Sjoerdsma expressed interest in expanding investment in Bangladesh's promising sectors. He emphasised the importance of utilising the Netherlands’ expertise in agricultural technology, food processing, industrial modernisation, maritime transport and water management. Commerce Secretary Ataur Rahman Khan and Dutch Ambassador to Bangladesh Joris van Bommel, among others, were present.

Bangladeshi expatriates sent home US$ 9.88 billion in remittances between July 1 and October 12 of the current fiscal year (FY 2026-27), recording a robust 12.7 percent year-on-year growth, according to the latest Bangladesh Bank data. During the corresponding period of the previous fiscal year (FY26), the country received $8.76 billion in remittances. Data prepared by the Financial Accounting and Reporting System (FARS) at the central bank showed that remittance inflows in the first 12 days of October reached $1.29 billion, marking a 9.2 percent year-on-year growth compared to $1.18 billion earned during the same period in October last year. On October 12 alone, expatriates remitted $124 million in the country. Meanwhile, Bangladesh's foreign exchange reserves stood at $31.40 billion as of October 11, calculated under the International Monetary Fund's (IMF) Balance of Payments Manual 6th Edition (BPM6) accounting standard. The central bank's gross foreign exchange reserve position was recorded at $36.21 billion on the same date.