United News of Bangladesh

Even though the Bangladesh Energy Regulatory Commission (BERC) had set the price of a 12- kg LPG (liquefied petroleum gas) cylinder at Tk 1,364 for the month of July, many consumers in the capital were being forced to pay between Tk 1,500 and Tk 1,600 — well above the official rate. The price discrepancy has sparked frustration among households and small businesses, who say they are being burdened with unjustified additional costs amid already mounting living expenses. Talking to UNB, a resident of Uttara said, "I went to three different shops in my area, and no one was selling the cylinder for less than Tk 1,500. If the government fixes a price, why is it not being enforced? We, the common people, are suffering." Fuel prices to remain unchanged in August "We are the worst sufferers," said Kokhon, a restaurant owner, adding, "We use a lot of gas cylinders, but the prices are extremely high. Retailers always charge more than the price set by BERC — they don’t care about the official rate. It’s all controlled by a syndicate," he added. Akhi Afrin, a housewife from Uttara’s Diabari, expressed similar frustration. "This is not a luxury item. LPG is a basic necessity for cooking. If prices go up like this, how will we manage our household budget?" she said. Surprisingly, many consumers remain unaware of the government-fixed LPG price. When asked, several gave similar responses, UNB observed. Climate change driving up grocery prices globally Questioned about the inflated rates, Raju Ahmed, Assistant Director (Tariff-2) at BERC, said the market is currently under surveillance by the Directorate of National Consumers' Right Protection, in coordination with the respective Deputy Commissioners' (DC) offices. In response to why prices remain inflated despite ongoing monitoring, Raju Ahmed told UNB, “It should not be the case, but if such irregularities are occurring, I will bring the matter to the attention of higher authorities.” He urged consumers to lodge formal complaints with the Directorate, attaching valid receipts as evidence, so that appropriate action can be taken. Retailers, however, claim they are not deliberately ignoring the government-set rate. Instead, they point to problems in the supply chain and alleged price irregularities at the wholesale level. BERC reduces LPG, auto gas prices for July "We're buying cylinders at higher rates from distributors — sometimes over Tk 1,450 per cylinder," said Jahidul Islam, an LPG retailer in Uttara. "If we sell at BERC’s price, we’ll incur losses. We are being forced to charge higher just to stay in business," he said. Another seller, requesting anonymity, said distributors themselves are not adhering to BERC prices. "There is no proper monitoring, and small sellers like us are being blamed unfairly," he added. He also mentioned that popular brands such as Beximco and Bashundhara are sold at higher rates due to their high demand. Experts argue that the core issue lies in weak enforcement of BERC’s pricing directives. "BERC may fix the prices, but without proper monitoring and a transparent distribution chain, consumers will never benefit," said an energy expert and consumer rights advocate. "There needs to be strict action against those who are overcharging, including wholesalers," he said. Faridpur farmers in distress as onion prices plummet Consumers are now calling on the government to intervene and ensure LPG is sold at the regulated price. Many have urged BERC and the Ministry of Energy and Mineral Resources to conduct market inspections and hold both distributors and retailers accountable. Until then, the gap between official pricing and real-world costs continues to weigh heavily on the average household.

The decision by the United States to reduce its reciprocal tariff rate for Bangladesh from 35% to 20% marks a significant step towards strengthening bilateral trade relations, officials here said, stressing the need for having an effective diversified, competitive and tolerant trade strategy. "Looking ahead, ensuring internal stability and proactive governmental measures will be key in maintaining competitiveness and fostering future growth," former director of Bangladesh Garment Manufactures and Exporters Association (BGMEA) Mohiuddin Rubel told UNB on Friday. Rubel, also Additional Managing Director, Denim Expert Ltd and Managing Director, Bangladesh Apparel Exchange Ltd, said ptimism prevails for Bangladesh's trajectory, poised for continued advancement and resilience in the evolving economic landscape. Chief Adviser Prof Muhammad Yunus has described the latest US decision as a "decisive diplomatic victory" and proudly congratulated the Bangladesh tariff negotiators on securing a landmark trade deal with the United States. "The future of Bangladesh is undeniably bright. Today’s success stands as a powerful testament to the nation’s resilience and its bold vision for a stronger economy tomorrow," he said in an immediate reaction after the successful tariff negotiations with the United States. By reducing the tariff to 20%, 17 points lower than anticipated, he said their negotiators have demonstrated remarkable strategic skills and unwavering commitment to safeguarding and advancing Bangladesh’s economic interests. Prof Yunus said they have been working relentlessly since February and navigated successfully through a complex negotiating process involving tariff, non-tariff and national security matters. "The agreement they negotiated preserves our comparative advantage, enhaces our access to the world's largest consumer market and safeguards our core national interests," he said in his message shared by Press Secretary Shafiqul Alam. This achievement not only underscores Bangladesh’s rising strength on the global stage but also opens the door to greater opportunities, accelerated growth and lasting prosperity, Prof Yunus said. Describing it as an "exciting development" in trade dynamics, Rubel said Bangladesh has adjusted its reciprocal tariff to 20%, positioning itself competitively against countries like Pakistan, Cambodia and Vietnam. Notably, compared to India and China, which have higher tariffs, this move sets Bangladesh apart, potentially attracting business from China, the exporter thinks. Despite potential short-term impacts on US sales due to increased retail prices, Rubel said, historical resilience suggests Bangladesh is primed for a long-term success. Reflecting on the post-COVID economic landscape, Bangladesh's steadfast growth amidst global challenges is commendable. "While short-term growth may vary amid global economic shifts, Bangladesh's strategic positioning and historical performance bode well for sustained progress," Rubel said. An Opportunity and A Warning Executive Director, South Asian Network on Economic Modeling (SANEM) Selim Raihan said while this reduction in the US countervailing duty rate is encouraging, it does not create a room for complacency or create room for complacency; rather, it is an opportunity and a warning at the same time. Trump's tariffs: Third and probably last round of talks underway in Washington "Bangladesh needs to take effective steps now to establish a diversified, competitive and tolerant trade strategy," he said. The recent reduction in the US reciprocal tariff rate for Bangladesh, from 35% to 20%, is a welcome development for the country’s export sector, said the economist. "This revision comes as part of a broader recalibration of the United States' reciprocal tariff framework, which appears to apply to many of its trading partners," Raihan said. For instance, Sri Lanka’s rate has been lowered to 20% (from 30%), and Pakistan’s to 19% (from 29%). Bangladesh's other competitors like Vietnam and India face tariff rates of 20% and 25% respectively. In this context, Bangladesh’s new tariff rate now aligns more closely with those of its key competitors in the US market, suggesting a reduced risk of trade diversion and a lower likelihood of significant disruption to its exports, particularly in the readymade garments sector. A notable element of uncertainty, however, remains in the global trade landscape: the reciprocal tariff rate for China is yet to be finalised, Raihan said. Given China’s central role in global manufacturing and its competitive overlap with Bangladesh in several export categories, the eventual US decision on China’s tariff rate will be pivotal in shaping future patterns of global trade. "If China is subject to significantly higher tariffs, Bangladesh and other South and Southeast Asian exporters may see a shift in demand in their favour. Conversely, a more favorable rate for China could intensify competition," said the economist. As such, the final terms for China will be critical in determining how trade flows realign in the months ahead, he said. A Triumph for Interim Govt’s Approach Former US diplomat Jon Danilowicz said the White House announcement of a 20% tariff rate for Bangladesh represents a "triumph" for the interim government’s approach to negotiations. Bangladesh may get reduced tariffs on exports to USA: Finance Adviser Further details of the bilateral agreement are likely forthcoming, he said. Over the past four months, Danilowicz said the interim government and its lead negotiator, National Security Adviser Dr Khalilur Rahman, faced relentless attacks from multiple corners. He said this despite the steady progress Bangladesh had made in strengthening the bilateral relationship since President Trump’s inauguration. "Now that the negotiations have concluded with a positive result for both Bangladesh and the United States, I hope these critics are prepared to admit their errors," said the former US diplomat who served in Dhaka in the past. With progress on the July Charter, an election date set to be announced, and positive news on the tariffs, he observed that this has been a good week for those who have Bangladesh’s best interests at heart. Energy Adviser Fouzul Kabir Khan said from domestic price stability to successful tariff negotiations with the US, Commerce Advisor Sk Bashir Uddin has proved his mettle, to the dismay of naysayers. We Negotiated Carefully “We negotiated carefully to ensure that our commitments aligned with our national interests and capacity,” said Khalilur Rahman, Bangladesh’s lead negotiator. “Protecting our apparel industry was a top priority, but we also focused our purchase commitments on US agricultural products. This supports our food security goals and fosters goodwill with U.S. farming states," he said. “We’ve also preserved our global competitiveness and opened up new opportunities to access the world's largest consumer market” Dr Rahman added. The government has placed an order to purchase 25 aircraft from Boeing with a plan to increase wheat and soybean import from the United States. “We remain engaged with the US. We have placed an order for purchasing 25 aircraft from Boeing. India and Vietnam each placed an order for 100 aircraft while Indonesia has placed an order for 50 aircraft from Boeing,” Commerce Secretary Mahbubur Rahman told reporters on July 27. He said Bangladesh needs some aircraft within the next couple of years and hopes to get a few as national carrier Biman Bangladesh Airlines needs to expand its fleet. US Chargé d’ Affaires meets Fakhrul, discusses tariffs, election For weeks, President Donald Trump was promising the world economy would change on Friday with his new tariffs in place. It was an ironclad deadline, administration officials assured the public. But when Trump signed the order Thursday night imposing new tariffs on 68 countries and the European Union, the start date of the punishing import taxes was pushed back seven days so that the tariff schedule could be updated. The change, according to AP, while potentially welcome news to countries that had not yet reached a deal with the US - injected a new dose of uncertainty for consumers and businesses still wondering what’s going to happen and when.

Bangladesh’s traditional dried fish industry, locally known as shutki, is gaining renewed attention as a potent earner of foreign currency, with exports showing signs of strong growth that marks it out as a highly promising item in the country's fisheries export portfolio. According to the Department of Fisheries and the Export Promotion Bureau, Bangladesh exported 3,038 tonnes of dried fish in FY 2023–24, earning approximately Tk 765 million ($8.5 million), marking a significant increase from the previous fiscal year’s earnings of Tk 488 million ($5.5 million). The growth has been driven by rising global demand in niche markets such as Hong Kong, Singapore, the Middle East, the United States, and parts of Europe. Though the industry is still far from attaining even a fraction of the heights achieved by the country's readymade garment industry, stakeholders say the potential is "enormous", if proper investments and reforms are introduced. Only 13 percent of dried fish produced in Bangladesh were found to contain traces of pesticides, while the remaining 87 percent are considered safe for consumption, according to findings of a new study. Researchers noted that even in the dried fish samples where pesticide residues were detected, the levels dropped significantly after cooking. The findings were presented recently at a seminar organised by the Bangladesh Food Safety Authority at its headquarters in Shahbagh. The Department of Fisheries informed that Bangladeshi shutki, essentially dried sea fish, has strong export prospects due to its unique taste, low cost, and availability. However, it must address hygiene and quality concerns to enter premium markets. Golden fibre glows again; Faridpur fields promise Tk 2,000cr harvest The current domestic production stands at over 20,000 tonnes annually, with major production hubs located in Chattogram, Cox’s Bazar, Dublar Char, and Ashar Char. However, the country still imports dried fish to meet domestic demand, which exceeds 55,000 tonnes per year. Industry insiders say lack of modern drying infrastructure, post-harvest handling, and quality control have kept the sector from reaching its full export potential. Many producers rely on traditional sun-drying methods, leaving the products vulnerable to contamination, pest infestations, and harmful chemical use. A recent study by the Bangladesh Council of Scientific and Industrial Research (BCSIR) revealed that while 13% of dried fish samples tested had pesticide residues, that number is considered low within the industry, and so it was good news.  The large majority were within safe limits and posed minimal risk when properly cooked. To improve product quality and safety, initiatives supported by the FAO and various NGOs have introduced solar dryers, covered drying racks, and other hygienic methods in coastal communities. These are expected to boost both export viability and domestic consumer confidence. In addition to its economic promise, shutki plays a key role in food security, especially in low-income and disaster-prone regions, due to its affordability, long shelf-life, and high protein content. Experts and policymakers are calling for a national action plan to support dried fish producers with access to finance, modern technology, and international market linkage. As global demand for clean, shelf-stable seafood grows, Bangladesh’s shutki sector may indeed find its place in the billion-dollar bracket—provided it gets the attention it deserves. In recent years, Bangladesh has emerged as a notable player in the dried fish export market, leveraging its rich marine resources and favorable geographical location. The country boasts an extensive coastline along the Bay of Bengal, providing access to a wide range of fish species that are ideal for drying and preserving. Dried fish products from Bangladesh are gaining increasing attention in international markets, particularly in Southeast Asia, the Middle East, and Europe.  According to the Bangladesh Export Promotion Bureau (EPB), the country's seafood exports, including dried fish, exceeded $400 million in 2022. This market potential is expected to expand further, as demand for dried fish continues to rise globally. In the 2023-2024 fiscal,  the country was able to earn Tk4,376 crore by exporting fish and fish products.  According to Business Research Insights, the global dried seafood market was valued at approximately $4 billion in 2023 and is projected to reach $6.8 billion by 2032, reflecting a compound annual growth rate (CAGR) of 6% during the forecast period. Bangladesh's dried fish exports have primarily targeted markets in the Middle East, particularly Saudi Arabia, the UAE, and Kuwait, where dried fish is a staple in local cuisine. What is also noticeable is that each of those destinations is home to fairly large communities of Bangladeshi expatriates, and ultimately they may be the ones to drive the demand for shutki from abroad.  While Bangladesh's dry fish export industry is poised for growth, several challenges need to be addressed to fully capitalize on its potential. One of the key challenges is improving the quality and consistency of dried fish products to meet international standards.  Bangladesh's exporters must ensure proper drying, processing, packaging, and adherence to hygiene regulations to compete effectively in global markets. However, opportunities abound for Bangladesh to expand its dry fish exports by investing in value-added products such as packaged dried fish snacks and ready-to-eat meals, consumers in foreign countries have often said. With global trends moving toward sustainable seafood sourcing, Bangladesh can also benefit from initiatives aimed at promoting eco-friendly fishing practices and improving traceability. According to export analysts, the increasing demand for ready-to-eat, high-protein foods in diaspora communities, particularly in the UK, US, and Middle Eastern countries, has opened up new doors for Bangladesh’s dried fish market. With improved packaging, branding, and cold-chain logistics, Bangladeshi exporters can tap into ethnic supermarkets and gourmet seafood outlets abroad. “Bangladeshi shutki is a delicacy in many migrant communities, but it has not yet been scaled for mass export due to quality and certification gaps,” said Md. Asadul Islam, a seafood exporter based in Chattogram. “If we meet EU and FDA standards consistently, we can easily triple our export figures within a few years.” Local dried fish hubs like Nazirartek in Cox’s Bazar, one of the country’s largest processing zones, are showing early signs of modernization. Several small and medium enterprises (SMEs) have begun adopting solar tunnel drying systems, plastic net enclosures, and vacuum-sealed packaging to enhance safety and shelf-life. However, challenges remain. Producers cite rising production costs, poor electricity access in coastal regions, seasonal labor shortages, and limited access to affordable credit as key barriers to growth. Women play a significant role in the dried fish value chain—particularly in cleaning, drying, sorting, and packaging. According to the Bangladesh Fisheries Research Institute (BFRI), over 1.4 million women are directly or indirectly involved in fisheries and post-harvest processing, many of whom work informally with little legal or financial protection. To ensure long-term sustainability, experts are also urging for better coastal resource management and sustainable fishing practices, as overfishing and climate change increasingly threaten marine biodiversity in the Bay of Bengal. Can Bangladesh reverse the decline in farming hands? In a recent roundtable held in Khulna, organized by the Marine Fisheries Association, stakeholders recommended the formation of a dedicated “Dried Fish Export Promotion Cell” under the Ministry of Commerce, as well as a national certification and grading system to ensure consistency in export quality. “If Bangladesh can standardize shutki production and position it as an ethnic delicacy and health food, it could soon rival shrimp and hilsa in export value,” said Dr. S.M. Nizam Uddin, a marine economist at the University of Dhaka. While the billion-dollar mark may still be a distant goal, the dried fish sector is clearly undergoing a transformation. With the right policy support, technological investment, and branding efforts, Bangladesh could turn its ancient shutki tradition into a globally competitive industry.

In the quiet fishing village of Jaldash Para in Teknaf’s Hnila union, the scent of salt air still lingers, but the sound of oars cutting through the Naf River has long faded. Where boats once bobbed with fresh catch and laughter rang through narrow lanes, silence now hangs heavy...  broken only by the rustle of old fishing nets and whispered conversations about survival. “Once our village was full of life...  the smell of fresh catch, the buzz of trade, and the clatter of nets,” says 70-year-old Samapti Das, her hands deftly weaving fishing gear beside her 96-year-old mother. “Now, there’s no fish, no buyers, no work. We survive on hope, barely,” he says. For thousands like Samapti in Teknaf, life changed dramatically in 2017 when over 700,000 Rohingya fled violence and persecution in Myanmar’s Rakhine State, crossing into Bangladesh and turning Cox’s Bazar into the world’s largest refugee settlement. Funding cuts heighten monsoon risks for Rohingyas in Bangladesh: UNHCR The humanitarian crisis triggered a wave of global attention, but for Teknaf’s fishing communities, it sparked something else entirely: an indefinite loss of livelihood. In response to the influx, the government declared the Naf River,  once the region’s lifeline,  off-limits to local fishermen.  Initially described as a temporary security measure, the ban, now entering its eighth year, has devastated the lives of more than 5,000 fishing families. The Ministry of Home Affairs, citing concerns over illegal border crossings and smuggling, enforced the restriction with support from Border Guard Bangladesh (BGB). But while the policy may have aimed to protect borders, it has left an entire community stranded, not in camps, but in poverty. In bamboo huts and tin-roofed homes, the stories are eerily similar: nets rotting in corners, boats tethered and crumbling, and families unable to afford food or medicine. Amid global aid crisis, Tk 652.55 crore project targets Rohingyas, local hosts Nabi Hossain lies groaning in pain, unable to afford treatment. His wife, Mostofa Khatun, sits beside him, her voice barely a whisper.  “We don’t even have money for paracetamol. Fishing was our only income,” she says. Not far from their home, Abdul Gani, president of the Jaliapara Small Fishermen’s Cooperative Society, counts more than 200 boats lying idle.  “Our tools are rotting. Our spirit is breaking,” he says. Once a bustling riverside community, Hnila now bears the weight of uncertainty.  Acting Chairman of Hnila Union Parishad, Ali Ahmed, estimates nearly 5,000 families remain entirely dependent on the river. “Security is important,” he says, adding, “but what about people?” His frustration runs deep. “Despite the military presence, border crimes like drug and arms trafficking haven’t stopped. In fact, they’ve grown worse. But the fishermen, the innocents, are the ones who’ve paid the price.” The human toll is staggering. Children dropping out of school. Kitchens without fire. Illnesses left untreated.  “Hunger gnaws quietly in the shadows,” Ahmed says in sad voice. In the absence of state support, many families are turning to NGOs or informal moneylenders, piling on debt they cannot repay. Abu Morshed Chowdhury, President of the Cox’s Bazar Civil Society Forum, believes it's time to reconsider how these communities are treated.  “If we cannot ensure security and livelihood, then these communities must be resettled somewhere safe, where they can work and live with dignity,” he says. There has been a slight policy shift. According to Teknaf Upazila Nirbahi Officer (UNO) Sheikh Ehsan Uddin, since August 5, limited fishing is permitted during daytime hours, but only in specific stretches of the river, such as Shahporir Dwip.  “The rest of the river remains restricted for security reasons,” he says. For the people of Teknaf, it’s a small relief, but not enough.

Highlighting the potential of deepening relations with Bangladesh in a number of areas, Romanian Ambassador to Bangladesh Sena Latif has said energy is one of the sectors that they would like to focus on more, given the potential in both countries. “We have had in the past years a very good increase in bilateral trade relations, but there is always much more to do. We think energy would be one of the sectors we would like to focus more on,” Ambassador Sena told UNB in an interview, sharing the potential in the areas of hydro, wind and solar energy. Sena Latif, who started her mandate as Ambassador Extraordinary and Plenipotentiary of Romania to India in November 2024, submitted her credentials to President Mohammed Shahabuddin and had a courtesy meeting with Foreign Secretary Asad Alam Siam on Tuesday. The Ambassador said they are looking to deepen ties in the areas of IT, communication, garments and petrochemicals. “So, we are very happy that this cooperation is really something tangible that we felt here.” She said Romania is “very strategically located” at the crossroads of many regions, and entering Romania means entering the European market (the EU is the largest trade partner for Bangladesh). “So, we have calculated that if a Bangladeshi company or Asian companies want to send their products to Europe, if they use the Port of Constanta, they would save six days rather than sending through Rotterdam or other Western ports. So this is something I think we can tap more into,” Ambassador Sena said. Talking about the credentials submission ceremony, she said she is very grateful for the way she was received at the Presidential ceremony. “It was a very impressive ceremony that actually shows the importance that is given and the openness of Bangladesh to the world.” The Ambassador said it is an important time in Bangladesh's history as the country is set to graduate from the LDC status in 2026, but also considering everything that is happening in the world – the very “unpredictable and still challenging times” they face. Experts urge caution as Bangladesh plans Boeing aircraft purchase to ‘ease US tariff pressure’ “And I think it's the time where now we and our partnership with Romania and Bangladesh and the European Union can show what we can do through our commitment in multilateral forums and our bilateral relations with transparency and mutual respect,” she said. Responding to a question, the Romanian Ambassador said, “We are in a very good phase of our partnership. I was very happy that the President of Bangladesh actually mentioned that Romania was one of the first countries to recognise the independence of Bangladesh right after the proclamation.” “So, that laid the foundation for a solid, enduring partnership we have developed over the years – very good relations in trade and now, more recently, also in people-to-people relations,” she said. Ambassador Sena said they are very happy to see a growing diaspora and a growing community from Bangladesh – not just manpower, a lot of Bangladeshi citizens going to work, more for construction, hospitality, IT, and agriculture, but also students. “So, one of our priorities in the embassy is to facilitate the process for visas easily and the consular aspects they need, but at the same time to also deepen our relations, especially in trade,” she said. Responding to a question on bilateral trade volume, the Ambassador said they are trying to get back to better numbers that they had and also that they proved in the past they can achieve, as the year before was, which was a good year. “We hope to get back there if we manage to have more contacts between our chambers of commerce. This is our first objective – to have meetings and economic missions, so to organise economic business delegations from Romania to Bangladesh,” she added. Bangladesh encouraged Romania for the resumption of labour recruitment from Bangladesh, stressing the need for finding ways to deepen the engagement in potential areas. Bangladesh also suggested academic collaboration through joint scholarships, recognition of degrees, and academic exchanges between universities of the two countries. Asked about the opportunity to recruit qualified manpower from Bangladesh, the Ambassador said this is still a very dynamic and new phenomenon. “So, it's still very evolving. I think now IT, construction and hospitality are the areas of most need. We're trying to look also maybe in pharma and medical jobs. So, we can also see where the need is,” she said, adding that Romanian businesses are very appreciative of Bangladeshis. Appreciating the role of Honorary Consul of Romania in Dhaka Enayetullah Khan, Ambassador Sena said Khan remains very actively involved for decades and they are very grateful for his activity promoting bilateral relations. “Also, we've got to learn a lot about the media and the arts and culture in Bangladesh. So, we'd like to also deepen our cooperation in that area, given the more people-to-people contacts that have been happening between our countries,” she said.   Talking about Bangladeshi students in Romania, the Ambassador said more and more are interested in studying in Romania. “So, we're trying to find ways to have better communication, make the offers more easily presented to them.” The Ambassador said Romania is a candidate for accession to the Organisation for Economic Co-operation and Development (OECD), where the most developed countries are member states and they are still in the process themselves of adopting some reforms that are still necessary. “So, I think in that sense, we can also be helpful in exchanges and good lessons learned and behaviour that we have had to reform.” One year after uprising, govt moves to restore order in public service During her interactions in Dhaka, both sides expressed satisfaction with the existing bilateral relations and reaffirmed their commitment to further strengthening cooperation. Bangladesh proposed collaboration in trade, investment, labour mobility, education and consular services and highlighted opportunities for trade diversification and investment in sectors such as ICT, renewable energy, and agro-processing.

Bangladesh Bank is expected to revise its long-standing contractionary monetary policy, with an eye towards easing interest rates. This crucial shift comes in response to lower-than-desired credit growth observed in the previous fiscal year, a direct consequence of the tight monetary stance. For the past three fiscal years, the central bank has maintained a contractionary policy, primarily aimed at taming persistent inflation and stabilising the volatile foreign exchange market. The central bank’s Monetary Policy Committee (MPC) now suggests measures to reduce interest rates in a bid to stimulate credit flow and boost employment. Bangladesh sees sharp drop in bank deposits over scams, mergers: Report Sources close to the MPC indicate that inflation is on a decreasing trend and has already fallen to a significant level. This positive development is paving the way for a review of the contractionary policy, which economists and policymakers believe has severely impacted investment, credit growth and overall employment in recent fiscal years. "The monetary policy significantly affected investment, credit growth and employment in the previous fiscal years. The central bank must now consider these major macroeconomic issues in the new monetary policy," said a prominent economist associated with the MPC. The forthcoming monetary policy announcement on Thursday will reveal the extent of the central bank's adjustments. GED projects cautious optimism for Bangladesh economy in FY2026 This move signals a potential shift in focus from solely inflation containment to balancing price stability with economic growth and job creation. Types of Monetary Policy Expansionary (Loose) Monetary Policy aims to stimulate economic growth, reduce unemployment and prevent deflation. This involves measures like lowering interest rates, buying government securities and reducing reserve requirements. Contractionary (Tight) Monetary Policy aims to curb inflation and cool down an overheating economy. This involves measures like raising interest rates, selling government securities, and increasing reserve requirements. The primary goal of monetary policy is to achieve macroeconomic objectives such as: Price Stability: Keeping inflation low and stable. This is often the most important objective as high and volatile inflation erodes purchasing power and creates economic uncertainty. Bangladesh needs to adapt strategically in order to navigate complex challenges of 2025: ICCB Economic Growth: Promoting sustainable economic expansion and a high rate of employment. Financial Stability: Ensuring the health and stability of the financial system, including banks and financial markets. Exchange Rate Stability: Managing the value of the domestic currency in relation to trade with other currencies. How Monetary Policy Works Central banks implement monetary policy by adjusting the availability and cost of money in the economy. They do this primarily through various tools that influence interest rates, bank lending and the overall money supply. The mechanism through which these actions affect the economy is known as the monetary transmission mechanism. Banking sector needs $35 billion for reconstruction as 80% funds embezzled: Finance Advisor

As Bangladesh has planned to purchase 25 Boeing aircraft as part of a strategic move to persuade US to lower tariffs on the country, aviation experts have urged the government to prioritise economic and operational viability of the big purchase. They find it as a government strategy to deal with the US pressure by deepening commercial ties with Washington as the US is set to impose a 35% tariff on Bangladesh’s export items from August 1. “We have included Boeing aircraft in the list of products to purchase to reduce the trade deficit with the US. We plan to acquire 25 aircraft from Boeing, and the deal will be implemented gradually,” Commerce Secretary Mahbubur Rahman told UNB. He said recent agreements to purchase wheat from the US have been concluded while talks to buy soybean and cotton are at the final stage. Priority will also be given to acquiring military equipment from the US, he added. Aviation experts, however, have warned against hasty procurement without assessing route viability and demand. “Buying planes purely for diplomatic reasons without considering passenger flow or route viability could become a financial burden for the national carrier,” said ATM Nazrul Islam, a retired Wing Commander and aviation analyst. Nazrul Islam added that ideally the airline itself should initiate such plans to ensure alignment with route planning and operational needs. Indian medical team holds 2nd round of consultations for treatment of aircraft crash victims He also warned against relying solely on Boeing pointing out that leading global airlines operate both Boeing and Airbus fleets. Ignoring alternatives may be risky, he added. Nazrul Islam said the government is using the aircraft purchase plan as a “trade negotiation tool” to counter the US tariff hike. Another aviation analyst and former Biman board member Kazi Wahidul Alam said the government’s announcement signals interest rather than a finalised deal. “Biman does face an aircraft shortage, so the purchase could be done gradually based on 10-15 years’ demand,” he added. Alam said aircraft model selection, routes and procurement methods must align with the airline’s strategic plans. Purchasing from a single manufacturer warrants careful assessment of competitive pricing as buying from both Boeing and Airbus might yield better deals, he added. The estimated cost of buying 25 Boeing aircraft could be around six billion US dollars. Bangladesh Biman currently operates 19 aircraft, including 14 Boeing planes from the US and five Canadian-made Dash-8 Q400 turboprops. The Boeing fleet consists of four 737-800, four 777-300ER, four 787-8 Dreamliners and two 787-9 Dreamliners. Biman sources said Boeing recently offered 14 advanced aircraft models, including the 787-10 Dreamliner, for Bangladesh’s consideration. Biman’s techno-finance committee is analysing the proposal taking into account routes, revenue, and passenger traffic. Biman officials said they have not yet finalised any deal with Boeing or Airbus. As Boeing’s proposal is under review and if the government decides on a diplomatic basis, the airline will carry out implementation. In 2023, the previous government signed a Memorandum of Understanding with France to buy 10 Airbus aircraft with initial plans to acquire two A350 models. Later, Boeing offered at least two 787 Dreamliners. Meanwhile, a Bangladesh trade delegation is holding its third round of talks in Washington to negotiate the tariff issue with the US. Bangladesh officials are still hopeful that the US may reduce the tariff to 18-20 percent or lower through dialogue. Bird strikes threaten aircraft safety in Bangladesh; monitoring system lies inoperative The US administration has already indicated discussions on tariffs for Indonesia (19 percent) and India (20 percent), and also Bangladesh expects a similarly negotiated tariff rate.

Bangladesh’s capital market is regaining momentum, attracting major investors amid rising trading activity and a sharp increase in Beneficiary Owner (BO) accounts over the past year, according to the Bangladesh Securities and Exchange Commission (BSEC). While some quarters have suggested that investor participation in the stock market is shrinking, official data tells a different story. Recent BSEC statistics indicate that while small investors are gradually pulling back, the presence of high-net-worth individuals and institutional investors has strengthened significantly. The number of portfolios valued between Tk 50 crore and Tk 500 crore has seen a marked increase compared to June 2024. Similarly, portfolios exceeding Tk 50 lakh have also gone up, pointing to a clear shift in investment patterns toward larger stakes. Retail participation, particularly investments below Tk 1 lakh, has, however, dipped. As of June 30 this year, the number of portfolios below Tk 1 lakh stood at 831,748, down from 916,157 in the same period last year. Rise in Millionaire Investors BSEC data further reveals a steady growth in the number of millionaire investors. Sikder Group issues clarification on freezing of its BO accounts In June 2024, 12993 investors held portfolios valued over Tk 1 crore. That number has now risen to 13316. Although portfolios above Tk 10 crore have declined slightly, portfolios valued over Tk 50 crore have increased. In June last year, there were 696 investors in the Tk 50 crore-plus category; the number has now climbed to 733. The number of investors with holdings over Tk 100 crore has gone up by 22, and portfolios exceeding Tk 500 crore have increased by two. Market insiders say large investors are holding firm, driven by the belief that the market will recover over time. "Unlike small investors who are more vulnerable to market shocks, large investors are committed for the long term. They understand that patience in the capital market pays off," said Asad Mia, Branch Manager at Global Securities in Motijheel. Echoing this, Tarek Hossain, a veteran investor with nearly a decade of experience, noted, "Small investors tend to trade frequently for short-term profits, while big investors invest in fundamentally strong companies and stay invested for years, riding out temporary downturns." Demand for Quality IPOs Despite the ongoing recovery, the market has yet to witness the listing of any major fundamentally strong company over the past year. However, efforts are underway to change that, officials say. Dr. Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser said the government is preparing a list of both state-owned and private companies to engage them in discussions about potential market listings. Number of  BO accounts increased  in August "Improving market surveillance is equally important. Strong oversight will deter manipulative activities and help restore investor confidence," he added. Abu Ahmed, Chairman of the Board of Directors at the Investment Corporation of Bangladesh (ICB), stressed the importance of quality listings. “One good company can change the entire market sentiment. We must also consider bringing in multinational firms alongside domestic entities,” he said. BSEC Chairman Khondoker Rashed Maqsood reaffirmed the Commission’s commitment to listing high-quality companies, and emphasised implementing taskforce recommendations to ensure sustainable growth in the capital market.

Weeks of worry over water scarcity have given way to a renewed hope, as timely monsoon rains ease retting woes and raise prospects for a bumper jute harvest in Bangladesh’s jute heartland. This season, more than 86,500 hectares of land in the district have been brought under jute cultivation. Agricultural officials now expect production to surpass two lakh metric tonnes, with a market value exceeding Tk 2,000 crore. Faridpur, a central district with an agriculture-based economy, has recorded a relatively good yield this season despite soaring production costs. Farmers note that expenses have multiplied, especially due to the absence of early rainfall, which forced many to depend on irrigation to sustain their crops. Water shortage disrupts jute retting in Lalmonirhat, sparking price concerns Jute has been cultivated in eight of the district’s nine upazilas, with Charbhadrasan upazila being the only exception. Surrounded by major rivers like the Padma, Arial Khan and Madhumati, Faridpur is naturally suited for jute cultivation thanks to its fertile land and favourable climate. According to the Department of Agricultural Extension (DAE), over 75% of Faridpur’s arable land is currently dedicated to jute cultivation, engaging more than five lakh farmers directly and indirectly.

The Religious Affairs Ministry has begun preparations for the 2026 Hajj, as the Saudi government has set a strict timeline for all participating countries including Bangladesh to complete the entire process well in advance. Under the new roadmap, missing any deadlines including registration, payment, or signing of service agreements could risk pilgrims' chances of performing Hajj, according to the ministry officials. Religious Affairs Secretary AKM Aftab Hossain Pramanik said, “Hajj is a bilateral arrangement between two countries and this time we must start earlier. We've already met with Hajj Agencies Association of Bangladesh (HAAB) and we are working in phases to finalise the package.” “We're still waiting on service provider costs and airfare. Once we have those, we’ll hold an executive committee meeting to finalise and announce the package — hopefully by August.” Saudi Arabia has allocated a quota of 127,198 pilgrims for Bangladesh for 2026, similar to previous years, through its Nusuk Massar platform. Hajj is expected to begin in the last week of May 2026, subject to moon sighting. However, this time, the final registration must be completed by October 12, and the full amount must be deposited by then. The government will need to transfer the service package fees to Saudi Arabia by December 21, followed by signing final agreements with Saudi service providers by January 4, and the housing and transportation payments must be completed by January 20. The Bangladesh-Saudi bilateral Hajj agreement is scheduled to be signed on November 9. Officials said completing such a comprehensive process so early poses a major challenge. In 2024, the primary registration for Hajj started in September, and the package was declared at the end of October whereas this year’s preparations are beginning in July. The primary registration for 2026 Hajj began on Sunday (July 28). Prospective pilgrims must deposit Tk 4 lakh to secure their preliminary registration. Many Hajj agency owners have expressed concern saying that the initial deposit is too high and may discourage many potential pilgrims, especially given that the final package has not yet been announced. Officials at the Ministry of Religious Affairs said they are currently waiting for cost details from the Saudi side and the finalisation of airfare by Biman Bangladesh Airlines. In 2024, under government arrangements, Package-1 cost Tk 4,78,242, while Package-2, a special package with additional amenities, cost Tk 5,75,680. The minimum cost set for private Hajj agencies was Tk 4,83,156. This year, the ministry is working on offering two government packages again, aiming to reduce the cost of Package-1 and bring airfare below Tk 1.5 lakh, down from the previous Tk 1,67,820. Agencies will base their own packages on the government-declared costs. Package-2 is expected to offer enhanced services, including accommodations within 500 to 700 metres of the Haram in Makkah, with costs projected to be around Tk 7 to 7.5 lakh. Govt to refund Tk 8.28 crore to 4,978 hajj pilgrims: Religious Affairs Adviser The Religious Affairs Secretary also said the ministry is working to reduce costs both from the Bangladesh and Saudi sides. "Our goal is to make Hajj more affordable so that more people can go," he said. Responding to questions about the proposed special package, he said, “Some pilgrims want to stay closer to the Haram and are willing to pay more. We’re considering a package with accommodation within 500 to 700 metres. We’ll decide after consulting with the Adviser.”  “Our Hajj mission in Saudi Arabia is negotiating with their authorities. We are also discussing airfare with Biman. Once we receive all cost components, we’ll finalise the package,” he added. Joint Secretary of the Hajj Division Md Manjurul Islam said, “We’ve started working on next year’s Hajj, but the timeline set by Saudi Arabia is a major challenge. Everything needs to be completed six months earlier than usual.” He added, “Many pilgrims usually wait until two or three months before Hajj to make preparations. This new schedule will require a major shift in mindset.” HAAB Secretary General Farid Ahmed Mozumder said due to the Saudi roadmap this year’s package must be declared earlier than usual. He criticised the decision to collect Tk 4 lakh upfront for primary registration. “Most people are not ready to pay such a large amount so early. We proposed collecting Tk 2 to 2.5 lakh initially, which would be more realistic,” he said. He also expressed concerns over Saudi Arabia’s plan to centralise Qurbani and meal arrangements, saying it might not suit Bangladeshi pilgrims’ preferences and budgets. “Some pay 500 riyals for Qurbani, others 1,500. A single standard package won’t work. As for meals, Saudi-provided food has not been satisfactory in the past. If they take over food responsibilities for a full month, there’s a risk of health issues,” he said. He urged the government to address these concerns through discussions with Saudi counterparts. Registration can be done through the e-Hajj system at www.hajj.gov.bd, via the “Labbayk” app, Union Digital Centres, Islamic Foundation offices, Baitul Mukarram office, or Ashkona Hajj office.