United News of Bangladesh

Flourish Garments Bangladesh Co., Ltd., a China (Hong Kong)-based company, is set to invest US$15.34 million to establish a high-end garments manufacturing facility at the BEPZA Economic Zone in Mirsharai of Chattogram. An agreement to this effect was signed on Sunday at the BEPZA Complex in Dhaka between the Bangladesh Export Processing Zones Authority (BEPZA) and Flourish Garments Bangladesh Co., Ltd. Md Tanvir Hossain, Executive Director (Investment Promotion) of BEPZA, and Han Junxiao, Managing Director of Flourish Garments Bangladesh Co., Ltd., signed the agreement on behalf of their respective sides. BEPZA Executive Chairman Major General Mohammad Moazzem Hossain witnessed the signing ceremony, said a press release. Under the project, the company will produce around 4 million pieces of garments annually, including fleece jackets, soft-shell jackets, down jackets, cotton coats, leather jackets, T-shirts, polo shirts, shorts, parkas, long pants, ski suits, windproof jackets, fishing and hiking suits, yoga and running suits, jeans, knitted shorts, faux leather clothing, deer skin velvet clothing, golf clothing and casual skirts. The project is expected to create employment opportunities for about 1,988 Bangladeshi nationals, it added.

Bangladesh’s point-to-point inflation rose to 9.13 percent in February, up from 8.58 percent in January due to a sharp increase in food prices, according to the latest data released by the Bangladesh Bureau of Statistics (BBS). Food inflation climbed to 9.30 percent in February, compared with 8.29 percent a month earlier. Non-food inflation also rose slightly to 9.01 percent, up from 8.81 percent in January. Inflation remained higher in rural areas than in urban centres, reflecting continued pressure on food prices outside major cities. In rural areas, overall inflation increased to 9.21 percent in February, from 8.63 percent in January, though it was lower than 9.51 percent recorded in February last year. Rural food inflation rose to 9.07 percent, up from 8.18 percent in January, while rural non-food inflation increased to 9.34 percent, compared with 9.04 percent a month earlier. In urban areas, overall inflation rose to 9.07 percent in February, up from 8.57 percent in January. Urban food prices saw a sharper increase, with food inflation jumping to 9.87 percent, significantly higher than 8.61 percent in the previous month, indicating stronger price pressure in city markets. However, non-food inflation in urban areas remained relatively stable at 8.57 percent, slightly higher than 8.54 percent in January. Despite the month-on-month increase, the annual average inflation rate has eased significantly. The 12-month moving average inflation from March 2025 to February 2026 stood at 8.65 percent, down from 10.31 percent during the same period a year earlier, suggesting that overall price pressures have moderated compared with last year. Meanwhile, wage growth continued to lag behind inflation, raising concerns about declining purchasing power for workers. The national wage rate index increased by 8.06 percent in February on a point-to-point basis, slightly lower than 8.08 percent in January and 8.12 percent in February 2025. Sector-wise wage growth in February was 8.10 percent in agriculture, 7.99 percent in industry, and 8.20 percent in services. According to BBS, the Consumer Price Index (CPI) for February was calculated based on data collected from 154 markets across all 64 districts of the country. Overall, the data indicate that inflationary pressure persists despite a gradual improvement in the annual average, with rising food prices continuing to drive the cost of living for consumers.  

Leading economists have urged the Bangladesh Bank (BB) to prioritize the preservation of foreign exchange reserves and seek alternative energy sources to shield the national economy from the looming fallout of the Middle East conflict. The advice was given during a high-level meeting on Saturday (March 7) between Governor Mostaqur Rahman and eight of the country’s top economists, held at the central bank headquarters in Motijheel. The session was convened to discuss policy strategies amidst rising global uncertainty caused by military tensions between the US and Iran. Key Recommendations from Economists: The economists emphasized that while the full extent of the crisis remains unclear, the pressure on the US dollar and national reserves is inevitable. Their primary recommendations include: Preserve Reserves: Avoid spending dollars from the reserves to fund imports; instead, use existing foreign currency inflows strictly for essential stability. Fuel Diversification: To reduce dependency on the volatile Middle East, the government should immediately explore fuel imports from alternative sources such as Brunei and Singapore. No Immediate Hikes: Despite rising global prices, the experts advised against passing costs onto domestic consumers immediately to prevent a further spike in inflation. Monetary Caution: They argued against lowering the policy interest rate (Repo rate) at this moment. While lower rates could boost investment, the priority must remain inflation control until the war-induced pressure subsides. Governor Pledges Independence: Governor Mostaqur Rahman, who took office on February 26, addressed concerns regarding political influence during the meeting. “I will perform my duties with absolute honesty and will not make any decisions under political pressure," the Governor assured the economists. He also instructed commercial banks to remain steadfast against external political interference in their decision-making processes. Strengthening Financial Inflow: The meeting also highlighted the potential risks to remittance inflows if worker movement in the Middle East is hindered. To counter this, economists suggested:  Smoothing the legal channels for expatriates to send money home. Expediting the release of committed foreign loans from the ‘World Bank’ and other global lenders. Seeking additional credit lines from the Islamic Development Bank (IDB) specifically for oil imports. The distinguished economist panel included Dr. Mustafizur Rahman, distinguished fellow of CPD, Dr. Fahmida Khatun, Executive Director of CPD, Dr. Mustafa K. Mujeri, former chief economist of BB, Dr. Mohammad Abdur Razzaque of RAPID, Dr. Selim Raihan of SANEM, Dr. Masrur Reaz of Policy Exchange, Dr. A.K. Enamul Haque, Director General of BIDS, Nazmus Sadat Khan of the World Bank. The meeting concluded with a proposal to form a standing committee of experts to provide regular updates and policy recommendations to the central bank to prevent public panic and ensure institutional stability.

The volume of classified loans in Bangladesh’s banking sector witnessed a significant decrease of Tk 87,298.33 crore during the final quarter of 2025. As of December 31, 2025, total classified loans stood at Tk 5,57,216.92 crore, down from Tk 6,44,515.25 crore in September 2025. According to a report by the Banking Regulation and Policy Department of Bangladesh Bank, the gross classified loan rate fell to 30.60 percent in December, compared to 35.73 percent at the end of September 2025. However, on a year-on-year basis, the gross ratio remains significantly higher than the 20.20 percent recorded in December 2024. Net Classified and Defaulted Loans: The net classified loan rate, after adjusting for maintained provisions and suspense interest, dropped sharply to 13.93 percent in December from 26.40 percent in September. Meanwhile, specific defaulted loans totaled Tk 5,44,831.88 crore (29.92 percent of total loans), marking a decrease of Tk 68,039.57 crore over the three-month period of quarter-2. Category-wise Performance The reduction in classified loans was observed across all bank categories: State-owned Commercial Banks: The rate dropped to 44.44% from 49.65%. Private Commercial Banks: Saw a decline to 28.25% from 33.75%. Specialized Banks: Decreased to 39.74% from 41.95%. Foreign Banks: Maintained the lowest rate at 4.51%. Provision Shortfall and Credit Growth Despite the drop in bad debt, the banking sector continues to face a massive provision shortfall of Tk 1,91,441.35 crore. Bangladesh Bank buys $25 million from banks to stabilize market Total outstanding loans and advances in the 61 scheduled banks reached Tk 18,20,915.44 crore by the end of December 2025, reflecting an annual credit growth of 6.40 percent. Private commercial banks led this growth with a 7.56 percent increase in disbursements over the year.

Bangladesh Bank (BB) on Monday purchased US$25 million from two banks as a continuous effort to maintain stability in the foreign exchange market. The central bank bought the dollar at a cutoff rate of Tk 122.30 per dollar, according to a central bank official. Arif Hossain Khan, Executive Director and Spokesperson of Bangladesh Bank, confirmed the transaction. "We purchased $25 million from two commercial banks today at the 122.30 cutoff rate," he said. With Monday's procurement, the central bank's total dollar purchase for the current fiscal year, FY2025–26, has reached a substantial $5.49 billion, the spokesperson added. The central bank has been consistently mopping up dollars from the banking channel throughout February to manage liquidity and exchange rate volatility. Earlier on February 24, the BB bought $87 million from eight banks, following a purchase of $123 million from eight commercial banks on February 22. In the first half of February, the bank made several large-scale interventions, including $171 million on Feb 10, $209 million on Feb 9, and $196.5 million on Feb 5. Record data shows that on February 2, the bank made its highest single-day purchase of the month, collecting $218.50 million from 16 commercial banks. All recent transactions have been consistently settled at the exchange rate of Tk 122.30, reflecting the central bank's current peg or target rate for these official interventions.

Bangladesh’s merchandise export earnings reached US$31.91 billion during the first eight months of the 2025-26 fiscal year (July–February), signaling sector stability despite a cooling global trade climate. In February 2026, Bangladesh's exports declined by 12.03 percent to $3.97 billion compared with February 2025. In January 2026, Bangladesh exported goods worth $4.41 billion. According to the latest data from the Export Promotion Bureau (EPB), in eight months, the country recorded a marginal 3.15 percent decline, down from $32.92 billion in the same period in the previous fiscal year FY2024-25. Industry insiders attributed the slight contraction to temporary factors, including domestic port disruptions, the recently held national election, and subdued global demand in key traditional markets. The Ready-made Garments (RMG) sector, the backbone of the nation's export economy, fetched $25.79 billion during the July-February period, reflecting a 3.73 percent decrease year-on-year. Within the apparel sector, knitwear continued to outpace woven garments, maintaining its lead as the primary driver of earnings. While the overall figure saw a slight dip, several non-traditional sectors registered positive growth, indicating a steady diversification of the national export basket. Key sectors that saw year-on-year increases include leather and leather goods, Jute and jute goods, Home textiles, light engineering and frozen fish. In terms of destinations, the United States remained the largest market for Bangladeshi products, totaling $5.87 billion with a modest growth of 0.74 percent. Notably, China recorded the highest growth among major destinations, with a significant year-on-year increase of 19.12 percent. Despite the marginal overall decline, trade experts suggest that the performance reflects a resilient environment capable of navigating both domestic and international complexities as the fiscal year enters its final quarter.

Bangladesh could face mounting energy and financial pressures amid rising tensions between the United States and Iran, with concerns growing over possible disruptions in the Strait of Hormuz, a key route for the country’s energy imports. With 65-70 percent of the nation's energy demand met through imports—primarily Liquefied Natural Gas (LNG), crude oil, and Liquefied Petroleum Gas (LPG)—sector experts warn that a prolonged regional war could paralyze the economy. The Strait of Hormuz is the world’s most vital oil transit point. Reports indicate that Iran’s Revolutionary Guard has begun transmitting radio warnings that vessels may be barred from the passage. If the Strait is officially closed, international research agencies forecast that crude oil prices could surge to between USD $95 and $110 per barrel. For Bangladesh, this is a direct threat. The country relies on this specific maritime route for: LNG: 55 percent of total imports (mainly from Qatar and Oman). Crude Oil: 20 percent of annual demand (sourced from Saudi Arabia and UAE). LPG: Almost 100 percent of supply is Middle East-centric. How Bangladesh Will Be Affected The disruption of this supply chain is expected to trigger a domino effect across several sectors. Severe Power Shortages: As Qatar is a primary source of gas for power plants, any disruption in LNG shipments will lead to widespread load-shedding during the upcoming peak summer season. Gas Crisis: Professor M. Tamim, an energy expert and Pro-VC of Independent University, warned that "a continued war will spike oil prices and disrupt Qatar's LNG supply, creating a grave gas crisis." LPG Scarcity: The domestic market, which requires 1.2 lakh tonnes of LPG monthly, is already facing a shortage. A supply chain break would cause prices to skyrocket and supplies to vanish. Economic Strain: Rising global oil prices will put immense pressure on Bangladesh's foreign exchange reserves and increase the cost of living. Dr. Ijaz Hossain, Professor and Dean of Engineering, Specialization Energy and Environment of BUET told UNB that energy supply from the Middle East will be severely disrupted if the war prolonged. “Impact of this both energy supply and electricity generation in Bangladesh would be affected vastly as there is no immediate alternative. The national storage capacity is small for our country,” he added.   Despite the looming threat, the Bangladesh Petroleum Corporation (BPC) maintains that refined oil supplies are "safe" until June, as they are sourced from Malaysia, China, and Singapore, bypassing the Strait of Hormuz. However, the BPC Chairman, Md. Rezanur Rahman, admitted they are "closely monitoring" the crude oil situation. Petrobangla Director (Operations) Engr. Md. Rafiqul Islam echoed these concerns, stating that while they are monitoring the situation 24/7, a closure of the Qatari shipping route remains a major cause for anxiety. Energy Minister Iqbal Hassan Mahmood, has called an emergency meeting to discuss the crisis. "We are monitoring the situation and planning to explore alternative import sources to ensure Bangladesh does not fall into an energy vacuum," the Minister told reporters. Industry leaders, including East Coast Group Chairman Azam J. Chowdhury, have urged the government to establish advanced communications with alternative suppliers like Indonesia and Malaysia to mitigate the risk.  

Gold prices in Bangladesh surged by Tk 7,640 per bhori in a single day as the Bangladesh Jewellers Association (BAJUS) revised rates twice on Saturday, setting the price of 22-carat gold at Tk 268,680 per bhori (11.664 grams). BAJUS first announced a Tk 4,374 hike in the morning and later raised the price by another Tk 3,266 at night, resulting in a cumulative increase of Tk 7,640 in a day. In a late-night statement, BAJUS said the new rates were fixed considering the rise in the price of pure gold (tejabi gold) in the local market and the overall market situation. Under the revised rates, 21-carat gold will cost Tk 256,433 per bhori, while 18-carat gold has been set at Tk 219,808 per bhori. The price of gold produced under the traditional method has been fixed at Tk 179,859 per bhori. The association said a mandatory 5 percent government VAT and a minimum 6 percent making charge set by BAJUS must be added to the selling price. However, the making charge may vary depending on design and quality of jewellery. So far in 2026, gold prices have been adjusted 34 times in the domestic market, including 22 hikes and 12 reductions. Bangladesh gold price drops Tk 3,266 per bhori; 22-carat set at Tk 255,558 Silver prices were also raised alongside gold. BAJUS increased the price of 22-carat silver by Tk 116 per bhori to Tk 6,998. The new rates set 21-carat silver at Tk 6,707 per bhori, 18-carat silver at Tk 5,715 per bhori, and traditional-method silver at Tk 4,316 per bhori. In 2026, silver prices have been adjusted 20 times so far, with 13 increases and seven decreases.  

Commerce Minister Khandaker Abdul Muktadir on Thursday said the recent hike in liquefied petroleum gas (LPG) prices at the consumer level is driven by retailers, not importers. “Importers are not increasing prices. Retail traders are responsible for the price escalation in the market,” the minister told reporters after a meeting with LPG importers at the Commerce Ministry conference room. The minister said the government discussed pricing and supply issues in detail with importers and noted their concerns. To prevent market manipulation at the retail level, Muktadir said, monitoring will be intensified through local administrations in the coming days. The Bangladesh Energy Regulatory Commission (BERC) had initially fixed the retail price of a 12kg LPG cylinder at Tk 1,356, later revising it down to Tk 1,341 on February 24. However, cylinders are currently being sold in the market at Tk 1,700–1,800. Responding to a question on when LPG would be available at the BERC-set price, the minister said prices would eventually come down to the previous level, though importers have sought a price review. “The ministry will consider the matter based on data and information. No one can run a business at a loss. However, no decision has been taken to increase LPG prices.” In January, the government allowed the state-run Bangladesh Petroleum Corporation (BPC) to import LPG under a government-to-government (G2G) arrangement to ease supply constraints. But the initiative has yet to yield visible impact in the market due to limited storage capacity. “The main problem for BPC is the lack of storage facilities. Without adequate storage, it cannot proceed with imports,” the minister said, adding that plans are underway to gradually enhance LPG storage capacity. The government may also utilise storage facilities of private importers. Although 33 companies have permission to import LPG in Bangladesh, only around 10 are currently active. The minister said many importers became inactive following the August 5, 2024 developments, creating a supply gap in the market. Muktadir pointed out that reliance on the spot market instead of future contracts contributes to price volatility. Importers are additionally facing banking-related complications, he said, expressing the hope that the LPG market would stabilise soon after addressing these issues.

Bangladesh Bank’s newly appointed Governor Mostaqur Rahman on Thursday hinted at a possible cut in the central bank’s policy rate and pledged support to revive factories shuttered amid political unrest under the interim government. On his first day in office, a day after his appointment, the new Governor held a meeting with deputy governors and executive directors at Bangladesh Bank to outline his vision and priorities. "The Governor emphasised maintaining macroeconomic stability while steering the economy towards inclusive growth," central bank spokesperson Arief Hossain Khan told journalists. “The Governor stressed the need to keep macroeconomic stability intact and move towards inclusive growth to generate employment. High interest rates are a major barrier to employment generation and investment. He has addressed the necessary course of action in this regard,” Arief said. The Governor also assured all-out cooperation to restart industrial units that were closed during the period of political instability. Bangladesh Bank will extend policy support, facilitate required financing and strengthen coordination within the banking sector to help resume production, which is expected to boost employment and output, the spokesperson added. “Containing inflation and ensuring price stability within consumers’ purchasing capacity will remain a priority, Governor noted the issue of elevated lending rates that are constraining investment will be reviewed for appropriate action,” Arief said. To ensure good governance at the central bank, Governor instructed that decision-making processes be fully rule-based and non-discriminatory. He also decided to enhance the delegation of authority to expedite operations by empowering officials at different levels with greater decision-making capacity. Mostaqur joined the central bank as the 14th Governor on Thursday, succeeding Ahsan H Mansur. He is the first full-fledged businessman to assume the top position at the central bank, unlike his predecessors who were career bureaucrats or professional economists. Responding to questions about his background, the spokesperson said, “A Governor’s academic discipline is not the main issue. He has assumed office through due process. The Governor’s core responsibility is to formulate monetary policy. It is not rocket science. There is a research team to assist him.” Arief also said the Governor expressed reluctance to engage in regular media briefings. “The Governor holds the highest position in a regulatory body. His words carry weight. He will not brief journalists every day. However, he may speak at formal briefings when necessary.” The Governor underscored the importance of stronger coordination with other regulatory bodies and the Ministry of Finance to tackle economic challenges through a unified approach, and called for collective efforts to uphold the central bank’s reputation and strengthen the economy. Later in the afternoon, the Governor visited the Ministry of Finance to meet Finance Minister Amir Khosru Mahmud Chowdhury, marking his first meeting with the minister after assuming office.