United News of Bangladesh

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Wednesday called upon World Bank to significantly expand the funding and scope of its sustainable water management programme to accelerate the green transformation of the country's ready-made garment (RMG) sector. The call was made during a high-level bilateral meeting held at the BGMEA Complex in Uttara, Dhaka, between BGMEA President Mahmud Hasan Khan and a World Bank delegation, led by Regional Director for Sustainable Development for the South Asia Region Mara K Warwick. During the meeting, both sides reviewed the progress of the “Dhaka Water Security and Resilience Programme” (D-Water) and its $5 million Viability Gap Funding (VGF) pilot initiative. Although BGMEA initially submitted a list of 31 factories, the World Bank selected eight factories for the initial rollout. Highlighting the overwhelming interest among garment manufacturers, the BGMEA chief urged the World Bank to scale up both the fund size and the number of beneficiary factories. Emphasising that water management is directly linked to international trade competitiveness, he noted that global buyers, particularly European brands, now strictly mandate data on water reduction, wastewater treatment, and recycling at every stage of apparel production. "Adopting water-efficient modern technology is indispensable not only to protect Dhaka's rivers and groundwater levels, but also to retain our competitive edge in global export markets," Mahmud Hasan said. Highlighting high initial capital expenditure as a major barrier, BGMEA leaders stressed that securing financial viability for green projects is difficult for factory owners amid global economic slowdowns and price pressures.  They urged international development partners like the World Bank to provide grants, long-term soft loans, or zero-interest financing to make green investments feasible. To address physical constraints faced by small and medium enterprises (SMEs) such as lack of space or adjacent drainage systems for individual Effluent Treatment Plants (ETPs), BGMEA proposed establishing cluster-based treatment facilities and utilising tankers or lorries for waste removal. They also called for expanding the program beyond Dhaka to other major industrial hubs across Bangladesh. Furthermore, BGMEA leaders underscored the need for policy predictability, urging authorities to avoid sudden regulatory shifts in environmental policy and provide sufficient lead time so factories can plan long-term eco-friendly investments. The World Bank delegation received the proposals positively and assured continued support and logistics to accelerate the RMG sector's sustainable transition. BGMEA Director Dr Md Hasib Uddin, World Bank Lead Water Specialist David Melcom Lord, Senior Water Supply and Sanitation Specialist Rokeya Ahmed, Water Specialist Md Mahadi Hasan, and Environmental Specialist Bushra Nishat were also present at the meeting.

The country’s GDP growth accelerated to 3.68 percent in the 2025-26 fiscal year, driven mainly by stronger performances in the industrial and services sectors in the fourth quarter, according to provisional estimates by the Bangladesh Bureau of Statistics (BBS). GDP growth at constant prices stood at 4.60 percent in the fourth quarter of FY26, sharply up from 2.05 percent in the same quarter of FY25, according to the provisional GDP estimates. In the first three quarters of FY26, GDP growth was estimated at 4.96 percent, 3.03 percent and 2.22 percent, respectively, compared to 3.91 percent, 3.53 percent and 4.53 percent in the corresponding quarters of FY25. At current prices, the size of the GDP stood at Tk 16,116.743 billion in the fourth quarter of FY26, compared to Tk 14,385.272 billion in the same quarter of FY25. The industrial sector recorded the strongest growth among the three major sectors in the fourth quarter, expanding by 6.52 percent at constant prices, compared to just 0.92 percent in the same quarter of FY25. However, industrial growth was uneven during the year. It stood at 6.82 percent in the first quarter, 1.27 percent in the second quarter and contracted 0.28 percent in the third quarter of FY26. In FY25, industrial growth in the first three quarters was 4.80 percent, 5.78 percent and 3.33 percent, respectively. The services sector grew by 4.28 percent in the fourth quarter of FY26, compared to 2.26 percent in the same quarter of the previous fiscal year. Services growth in the first three quarters of FY26 was estimated at 4.51 percent, 4.45 percent and 3.52 percent, compared to 4.49 percent, 3.48 percent and 7.32 percent in the corresponding quarters of FY25. The agriculture sector, however, recorded slower growth in the fourth quarter. Agriculture grew by 1.73 percent in the fourth quarter of FY26, compared with 3.19 percent in the same quarter of FY25. The sector’s growth in the first three quarters of FY26 was estimated at 2.11 percent, 3.68 percent and 1.74 percent, compared with -0.12 percent, 1.90 percent and 4.61 percent in the corresponding quarters of FY25. The provisional figures show that the economy gained momentum in the final quarter of FY26, mainly on the back of a stronger industrial performance and improved growth in services.

Bangladesh wants to raise bilateral trade with Indonesia to more than $10 billion, reduce the trade gap and increase exports of ready-made garments, pharmaceuticals and agricultural products to the Indonesian market. The issues came up for discussion at a meeting between Commerce Minister Khandakar Abdul Muktadir and Indonesian Deputy Foreign Minister Muhammad Anis Matta at the Ministry of Commerce on Wednesday. The commerce minister said bilateral trade between Bangladesh and Indonesia currently stands at around $4 billion annually, with Bangladesh importing goods worth about $3.5 billion from Indonesia while its exports to the country amount to only around $56 million. He stressed the need to increase Bangladesh's exports to reduce the trade deficit, saying bilateral trade could be raised to more than $10 billion if market-access barriers are removed. The meeting also discussed the proposed Preferential Trade Agreement (PTA), Comprehensive Economic Partnership Agreement (CEPA), energy cooperation, mutual recognition of halal certification, and greater access for Bangladeshi potatoes, pharmaceuticals and vaccines to the Indonesian market. Muktadir said Bangladesh is producing internationally competitive pharmaceutical and related products, which are exported to more than 100 countries. He sought Indonesia's cooperation in reducing procedural complications, including product registration requirements, to facilitate greater exports of Bangladeshi pharmaceuticals to the Indonesian market. The Indonesian deputy foreign minister welcomed Bangladesh's proposal to organise a solo exhibition of Bangladeshi pharmaceutical products in Jakarta and assured support for arranging the event. The two countries have held four rounds of negotiations on a PTA, but talks have remained stalled since 2023 due to differences over duty-free market access for Bangladesh's ready-made garments. Anis Matta said although Bangladesh and Indonesia compete in the textile and apparel sectors, the two sides should identify the challenges and work together to resolve them. He proposed a ministerial-level meeting on the sidelines of an international trade exhibition to be held in Indonesia from October 14 to 18. He also invited the commerce minister and a Bangladeshi delegation to attend the exhibition. The meeting also discussed Indonesia's state-owned oil and gas company Pertamina's proposed involvement in operating Bangladesh's Single Point Mooring (SPM) terminal. The two sides explored the possibility of increasing coal imports from Indonesia for Bangladesh's coal-fired power plants. Muktadir proposed mutual recognition of laboratory test results between the two countries to resolve testing and registration-related complications hindering exports of Bangladeshi potatoes to Indonesia. Efforts to export potatoes to Indonesia between 2015 and 2019 could not progress due to such complications. The two sides also discussed mutual recognition of halal certification and standards to boost trade in halal products, as well as the possibility of establishing government-to-government cooperation between the relevant authorities of the two countries. They expressed their interest in strengthening Bangladesh-Indonesia economic ties by expanding trade and investment.  

The Bangladesh Pavilion at 'Fashion World Tokyo (Autumn) 2026' officially inaugurated on Wednesday at Tokyo Big Sight in Japan to showcase the country's manufacturing capabilities in apparel, home textiles, and leather goods to the global market. Under the initiative and financial support of the Export Promotion Bureau (EPB), 25 Bangladeshi companies are participating in the three-day international exhibition across 27 booths, while five additional Bangladeshi firms are taking part under their own management. Bangladesh Ambassador to Japan Md. Daud Ali inaugurated the pavilion as the chief guest by cutting a ribbon. He later inspected various stalls, expressing satisfaction with the high quality of Bangladeshi products on display and engaging with participating entrepreneurs. Following the pavilion visit, a seminar titled "Bangladesh: Sourcing Excellence for Apparel, Home Textile and Leather Products" was held at the exhibition hall. Jointly organized by the Embassy of Bangladesh in Tokyo and the EPB with support from the Japan External Trade Organization (JETRO), the seminar brought together Japanese importers, investors, trading houses, and trade representatives from both nations. Addressing the seminar, Ambassador Daud Ali highlighted Bangladesh not merely as a manufacturing hub, but as a highly dependable sourcing and investment partner for Japanese businesses. He noted that Bangladesh has established a strong foundation across multiple sectors, including apparel, textiles, leather and footwear, pharmaceuticals, ceramics, ITES, and agro-processing. Elaborating on the ready-made garment (RMG) sector, the Ambassador stated that Bangladesh remains the world's second-largest RMG exporter, generating approximately $39 billion annually in export revenues. He emphasized that global fashion giants such as Uniqlo, H&M, Zara, and Walmart rely on Bangladesh, which also leads globally in sustainable manufacturing with over 230 LEED-certified green garment factories. He further pointed out that the leather and footwear sector is Bangladesh's second-largest export earner after RMG, generating nearly $1.5 billion annually, with a clear target to scale up exports to $5 billion over the next five years. He also expressed optimism that the proposed Economic Partnership Agreement (EPA) would significantly reinforce bilateral trade and economic cooperation between Bangladesh and Japan. Presenting at the seminar, Yuji Ando, Senior Director of JETRO's Global Strategy Department, underscored the quality and price competitiveness of Bangladeshi exports, particularly in apparel, home textiles, and leather products. He noted that Bangladeshi products strictly comply with international standards while offering competitive pricing, positioning Bangladesh as an ideal sourcing destination for Japanese buyers and brands, according to a press release.

The point-to-point inflation rose to 8.34 percent in September 2026 from 8.26 percent in August, according to data released by the Bangladesh Bureau of Statistics (BBS) on Wednesday. However, the rate was slightly lower than the 8.36 percent recorded in September last year. Food inflation increased to 7.22 percent in September from 7.02 percent in August, while non-food inflation edged down to 9.30 percent from 9.32 percent. In September 2025, food and non-food inflation stood at 7.64 percent and 8.98 percent respectively. At the rural level, general inflation rose to 8.38 percent in September from 8.31 percent in August, but remained below the 8.47 percent recorded a year earlier. Rural food inflation increased to 7.18 percent in September from 7.01 percent in August, while non-food inflation fell slightly to 9.57 percent from 9.59 percent. In September 2025, rural food and non-food inflation were 7.54 percent and 9.40 percent respectively. In urban areas, general inflation increased to 8.26 percent in September from 8.20 percent in August, while it was 8.28 percent in September last year. Urban food inflation rose to 7.25 percent in September from 7.04 percent in August. Non-food inflation, however, declined to 8.94 percent from 8.97 percent. The corresponding rates in September 2025 were 7.94 percent for food and 8.51 percent for non-food items.  

Dhaka Stock Exchange Brokers Association of Bangladesh (DBA) has urged Bangladesh Bank to raise the ceiling of its special fund facility for the capital market from Tk 200 crore to Tk 300 crore per scheduled bank and extend its tenure by another five years, until November 30, 2031. The brokers' body said the move is needed to tackle the prevailing liquidity crisis in the stock market, boost institutional investment and strengthen investor confidence. In a statement issued Wednesday, the DBA said it submitted a formal letter on Tuesday to Bangladesh Bank Governor Mostaqur Rahman. A copy of the letter was also sent to Bangladesh Securities and Exchange Commission (BSEC) Chairman Masud Khan. According to the DBA, the special fund facility introduced by Bangladesh Bank for investment in and development of the capital market has played a positive role in enhancing institutional investment capacity, improving market liquidity and stability, and restoring investor confidence. At present, each scheduled bank can create a special fund of up to Tk 200 crore. However, the current tenure of the facility is set to expire on November 30, 2026. The DBA said that, given the existing liquidity crisis in the capital market and global uncertainty stemming from ongoing tensions in the Middle East, the facility should be strengthened rather than withdrawn. The DBA said raising the limit and extending the tenure would increase institutional investment, improve market liquidity and depth, and bolster investor confidence. It would also play an important role in the long-term and sustainable development of the capital market, the association added. The DBA expressed hope that Bangladesh Bank would take the necessary steps to raise the ceiling to Tk 300 crore and extend the tenure until November 30, 2031, considering the current market situation and broader national economic interests. The association also reaffirmed its commitment to work in coordination with Bangladesh Bank and other relevant regulators, as it has in the past, to implement the government's capital market development initiatives and to extend necessary cooperation. 

Bangladesh Securities and Exchange Commission (BSEC) has decided to give no objection to the reconstitution of the boards of Bangladesh Export Import Company PLC (Beximco) and Shinepukur Ceramics PLC, subject to the withdrawal of a related case. The decision came at the commission's 1032nd meeting held at its Agargaon office in Dhaka and chaired by BSEC Chairman Masud Khan, according to a press release issued Wednesday. The commission said it took the decision after being informed, through a letter from its panel lawyer of the High Court's verbal directive, and after considering the interests of investors and other relevant issues. Beximco On the company's application, the commission also approved a seven-member board, comprising: ASF Rahman as chairman (sponsor), OK Chowdhury as managing director, Iqbal Ahmed, Ajmal Kabir and Quamrun Nahar Ahmed as directors, all nominated by the sponsor group, Shah Monjurul Hoque as independent director. One more independent director will be appointed in line with the Corporate Governance Code, 2018. Shinepukur Ceramics Responding to the company's application, the BSEC agreed to a seven-member board. The proposed structure includes: ASF Rahman as chairman (sponsor), OK Chowdhury, Iqbal Ahmed, Ajmal Kabir and Quamrun Nahar Ahmed as directors, all nominated by the sponsor group. Two independent directors will appointed in compliance with the Corporate Governance Code, 2018 For both companies, the commission also decided that its earlier orders, dated December 31, 2024 and January 15, 2026 will be withdrawn once the companies withdraw the case.

Digital banking services—comprising card operations, ATM transactions, and National Payment Switch Bangladesh (NPSB)-linked services across several banks— faced severe disruptions this week, due to a routine system-wide migration and maintenance exercise, Bangladesh Bank (BB) said on Tuesday. The central bank has summoned the management of IT Consultants PLC, the operator of the Q-Cash network, and directed them to restore all card-related services, including switching, at the earliest possible time, according to a press release signed by Sayeda Khanam, Director (Ex-Cadre – Publication) and Assistant Spokesperson of Bangladesh Bank. The press release stated that the service disruption began around 9:00 PM on October 4, 2026, due to urgent technical upgrades, system migration, and maintenance work executed by IT Consultants PLC, causing significant inconvenience to bank clients. Bangladesh Bank assured that it is taking all necessary measures to safeguard customer interests and ensure the continuity of financial transactions nationwide. The central bank clarified that transactions for banks, Mobile Financial Services (MFS) providers, and other Payment Service Providers (PSPs) directly connected to the NPSB platform remain entirely unaffected and are functioning normally. Additionally, all other primary payment systems operated by Bangladesh Bank—including the Bangladesh Automated Cheque Processing System (BACPS), Bangladesh Electronic Funds Transfer Network (BEFTN), and Real Time Gross Settlement (RTGS)—continue to operate without interruption. Bangladesh Bank has advised affected customers to follow instructions issued by their respective banks and utilize alternative payment platforms where necessary during this transition period.

Global efforts to curb tax avoidance by multinational corporations are fundamentally altering the strategies countries use to attract foreign investment, moving the focus away from traditional tax havens toward broader economic fundamentals, according to a report released by the International Monetary Fund (IMF). In an analytical insight following its latest (October 2026) global outlook, the IMF highlighted that international tax reforms, including the implementation of the global minimum corporate tax framework, are significantly diminishing the efficacy of low-tax regimes as a primary tool for courting global business. It noted that for decades, several jurisdictions relied on ultra-low corporate tax rates and preferential tax incentives to attract multinational enterprises. However, as international rules tighten to prevent profit shifting and base erosion, governments are increasingly forced to re-evaluate their investment promotion strategies, the organisation said. Instead of competing in a "race to the bottom" on corporate tax rates, countries are now shifting their focus toward non-tax competitive advantages, it said. These include strengthening physical and digital infrastructure, building a highly skilled labor force, ensuring regulatory predictability, and improving the overall ease of doing business. The Washington-based lender pointed out that this structural shift offers both opportunities and challenges, particularly for developing and emerging economies. While the erosion of tax-based competition levels the playing field, countries with severe infrastructure deficits or weak governance may face greater pressure to accelerate structural reforms to remain attractive to foreign direct investment (FDI). The IMF urged policymakers globally to adapt to this changing landscape by aligning domestic tax administration with international standards while simultaneously prioritizing investments in productivity-enhancing public assets, human capital, and transparent legal frameworks to secure sustainable long-term economic growth.

Commerce Minister Khandakar Abdul Muktadir on Tuesday said the government will fast-track the establishment of a Treatment, Storage and Disposal Facility (TSDF) and simplify approval procedures for the shipbuilding and recycling industry to create a working environment that suits foreign buyers. “The government has taken initiatives to simplify the approval process and remove institutional complications to boost the international competitiveness of the shipbuilding and recycling industry,” he said. The minister made the remarks at a meeting of the committee formed to review existing laws, rules and policies on the ship recycling industry and make recommendations, held at the Ministry of Commerce. The meeting discussed waste management, yard modernisation, compliance with environmental standards and ways to reduce delays in obtaining necessary approvals. Participants also stressed completing clearances and file approvals in Chattogram to avoid delays in Dhaka. Muktadir said Bangladesh must compete with rival countries in terms of capacity and efficiency to attract ship orders and expand its share of the international market. He stressed simplifying domestic procedures by taking the policies and practices of leading shipbuilding nations as benchmarks. A special committee, led by the minister, is working to simplify rules and procedures. Stressing the need for effective and implementable policies, Muktadir said enacting laws alone is not enough and that proper enforcement and compliance must be ensured. “Rules that cannot be implemented eventually lose their relevance,” he said, urging regulatory agencies to change their approach to their work. The minister said Bangladesh will prioritise implementation of the Hong Kong Convention to make the ship recycling sector more environment-friendly and bring it up to international standards. Calling for a balance between environmental protection and economic potential, he said environmental standards must be ensured, but the sector’s growth should not be hindered by unnecessary complications. Muktadir said the process of establishing the TSDF is already underway and will be expedited. On financing and stuck loans in the shipbuilding industry, he said stakeholders should not dwell on the complications of old loans but focus on overcoming the current crisis and moving the sector forward. The minister also called for quick meetings with all concerned parties and coordinated steps to expand facilities for entrepreneurs and remove existing barriers. Environment, Forest and Climate Change Minister Abdul Awal Mintoo said parties linked to European ships are hesitant to work in Bangladesh and are choosing alternative destinations because of the absence of a TSDF, preventing the industry from fully tapping its potential. European ships carry various types of recyclable materials, he said, stressing the need to build the necessary waste treatment, storage and disposal infrastructure to attract them. Mintoo advised all concerned to work together to remove unnecessary procedural complications. Industries Secretary Abdun Naser Khan presented the working paper at the meeting. He said a working group on a one-stop service platform has started work to speed up ship recycling operations. Work is also underway to draft guidelines for building green yards in line with the Hong Kong Convention and decentralise the Department of Environment’s clearance process. The meeting also discussed completing file approvals in Chattogram to avoid the 45- to 60-day delay in obtaining clearances. Participants stressed cutting the processing time by completing approvals locally and streamlining industry operations.