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From backbone to decline; Bangladesh’s jute exports plunge
Once hailed as the golden fiber and the backbone of Bangladesh’s post-independence economy, jute now contributes less than 2% to the country’s total export earnings, a sharp fall from nearly 90% in the 1970s.
Despite its vast potential, Bangladesh’s jute sector continues to struggle under poor planning, outdated technology and a lack of effective policy support.
According to Export Promotion Bureau (EPB) data, export earnings from jute and jute goods have been steadily declining in recent years.
The sector earned USD 911.51 million in FY2022–23, dropping to USD 855.23 million in FY2023–24, and further down to USD 820.16 million in FY2024–25, sparking concerns over the future of what was once the country’s flagship export industry.
Years of Neglect and Policy Contradictions
Experts blame the sector’s downturn on years of neglect and inconsistent government decisions.
“The biggest problem with jute is the absence of any sustained, effective initiative,” said agronomist and University of Western Australia PhD researcher Dr Moinul Hasan Khan. “Over the decades, we’ve seen one jute mill after another shutdown. Farmers never received fair prices for raw jute, and failure to protect both mills and growers has steadily eroded our export income.”
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In 2018, the Awami League government revamped the National Jute Policy to revive the sector and enhance its global competitiveness. Yet, only two years later, the same government shut 26 state-owned jute mills down, rendering around 25,000 workers jobless overnight.
“How can a country dreaming of export growth through jute shut down all its state-owned mills? It’s one of the most self-contradictory policy decisions imaginable,” said Dr Khan.
Data from the Bangladesh Jute Mills Corporation (BJMC) show that between 1972 and 1981, the number of state-owned jute mills increased to 82. The sector, however, soon began to crumble under financial losses, mismanagement and outdated machinery.
“Working in a jute mill once meant stability and pride,” recalled Nurul Akand, former Supply Manager of the iconic Adamjee Jute Mills. “Mill workers used to earn more than employees in other factories, with better bonuses and allowances. But one by one, those benefits disappeared.”
He said although the government later leased out closed mills to private operators, production never returned to its former levels.
Habib Hossain, a former officer at Monowar Jute Mills, said most public mills relied on outdated, Pakistan-era machinery. “No training was provided to workers to produce modern jute products. Eventually, citing losses, the government decided to close the factories instead of modernizing them.”
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Currently, Bangladesh has over 200 private jute mills, which account for nearly all jute exports. However, private mill owners say they too are facing mounting challenges.
“The biggest challenge now is sourcing enough raw jute during the season,” said Tapas Pramanik, Chairman of the Bangladesh Jute Spinners Association (BJSA). “Because of hoarders, mills often can’t get adequate raw jute, which stalls production.”
Record Harvest, Farmers Under Pressure
In southern Bangladesh, particularly Faridpur district, the country’s largest jute-producing region, the area under jute cultivation reached 86,500 hectares this year, producing raw jute worth about Tk 2,000 crore, according to the Department of Agricultural Extension (DAE).
Yet farmers say they have reaped little benefit. Many had to sell their crops early at low prices, while hoarders later resold the same jute to mills at nearly double the rate.
“We borrow money for seeds, fertilizers, and labor. When loans fall due, we’re forced to sell quickly, often at minimal profit,” said Hamiduzzaman, a farmer from Salta upazila in Faridpur.
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The situation is similar in the northern districts. Farmers in Gaibandha, known for high-quality jute, said they sold raw jute at Tk 2,500–2,800 per maund during harvest season, while current market prices have soared to Tk 4,500–5,000 per maund.
“Now jute prices are high, but we have none left. Hoarders control the market and profit from our losses,” said Runu Mia, a farmer from Gaibandha.
Mill owners and traders alike point to hoarding and unregulated raw jute exports as the sector’s biggest threats.
“Hoarders are exporting raw jute abroad, depriving local mills of the raw material they need,” said Shamsul Haque Howlader, a jute trader from Nalchity upazila in Jhalakathi. “The foreign exchange earned from raw jute exports is only a fraction of what we could earn by exporting value-added jute goods.”
Business leaders warn that if hoarding and unregulated raw jute exports are not curbed soon, Bangladesh’s jute industry could face an even deeper crisis.
Both farmers and mill owners are urging the government to prioritize technological modernisation, research, and incentives for the sector. They argue that lack of proper retting (soaking) facilities and limited access to processing technology continue to hurt both productivity and quality.
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Farmers say they still rely on primitive methods, burning wood and straw to ret jute due to water shortages, while mill owners struggle with inefficient production systems.
To revive the sector’s lost glory, industry insiders have called for increased subsidies, tax relief and technological upgradation programs for both farmers and mills.
Talking about revitalising the jute industry, Jute and Textile Adviser Sk Bashir Uddin said the government wants to move forward by learning from past mistakes in the sector.
“Many unrealistic and colourful dreams were promoted about the jute industry without considering ground realities, which prevented solutions from addressing the root problems. In the past, inefficiency, incompetence, vested interests and mismanagement pushed the jute industry towards destruction,” he said.
Noting that plastic has gradually replaced jute in many areas, the adviser stressed the need for expanding the market for jute products. “To popularise jute bags, a revolving fund has been created under the climate fund involving more than 1,600 entrepreneurs.”
Regarding the closed jute mills, the Adviser said the government is in the process of gradually reviving the factories through privatisation.
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He also mentioned that the government is considering a long-term plan for the jute industry.
As Bangladesh pushes towards export diversification, analysts say reviving the jute sector, once the pride of the nation, could provide a sustainable and eco-friendly path to industrial growth, but only if the government takes consistent, forward-looking action.
1 day ago
Bangladesh launches Tk 500cr project to turn haor fallow lands into productive farmland
Bangladesh has embarked on a landmark agricultural initiative aimed at converting vast stretches of fallow haor lands into cultivable fields, in a project valued at approximately Tk 500 crore.
The five-year programme, spearheaded by the Bangladesh Agricultural Development Corporation (BADC), is set to run through 2029 across four districts of the Sylhet division, including Sunamganj, Sylhet, Moulvibazar and Habiganj, officials said.
They said the ambitious project focuses on enhanced surface water management to boost irrigation and agricultural productivity.
It encompasses excavation of canals and hill streams, construction of permanent causeways, flood control measures, farmer training, and other interventions designed to increase resilience against climate impacts.
Dilapidated relics cast a long shadow over justice at Amtali court
Once fully implemented, officials estimate the programme will bring 17,019 hectares of fallow land under irrigation, generating an additional 51,058 metric tonnes of food grains.
Farmers in the region will receive hands-on training between 2025 and 2029 to improve water-use efficiency and adapt to climate challenges, potentially increasing rice and other crop yields. Fish production is also expected to rise following the excavation of canals and hill streams.
“Work has already started. We are keeping a strict watch to ensure that there is no irregularity or mismanagement in the project,” said Project Director Engineer Pranjit Kumar Deb.
Construction of reinforced concrete causeways—considered one of the most critical components—is underway, facilitating the easier transportation of Boro paddy by boat and vehicle, saving time and money for farmers. Nearly 10,000 hectares of fallow land in the haor districts are expected to be brought under cultivation during the project’s five-year span.
Planned works include the excavation of 70 kilometres of canals and hill streams, installation of 10 deep tube wells, renovation of 30 old irrigation schemes, construction of 15 culverts, two sluice gates, four causeways, and drainage improvement over nearly three kilometres.
Palm trees under the axe; Naogaon bypass pays an environmental price
Across the four districts, 221 kilometres of canals and hill streams will be excavated and 105 kilometres renovated. Enhanced water retention will allow flood and rainwater to be stored for supplementary irrigation during Aman and Robi seasons, benefiting 2,681 hectares.
Re-excavation and renovation efforts will also help protect roughly 7,900 hectares from early flooding caused by sudden hill runoff. Five kilometres of buried pipelines are expected to permanently remove waterlogging from 167 hectares, protecting crops worth approximately 24,200 metric tonnes on 8,067 hectares of Boro land.
Modern irrigation infrastructure, including low-lift pumps, force-mode pumps, artesian tube wells, sprinkler systems, and 367.6 kilometres of underground channels, will bring 10,032 hectares under advanced irrigation, while renovation of 180 old schemes aims to prevent water loss.
Small and medium irrigation infrastructure such as water passes, cattle crossings, footbridges, pipe sluices, regulators, and submerged weirs, cross dams, siphons, and conduits are also planned, alongside 10 kilometres of causeways to aid crop transportation.
Approximately 900 mechanics, managers, operators, field staff, farmers, and women farmers will receive training on irrigation management, equipment maintenance, crop and seed production, processing, and vegetable cultivation.
The initiative has been welcomed by haor movement leaders and farmers, though they have urged rigorous monitoring to prevent mismanagement.
“BADC is a pioneering institution in agricultural development, and this project could bring meaningful change if closely monitored,” said Saiful Alam Sadrul, a labour movement leader in Sunamganj.
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Prof Chittaranjan Talukder, a leader of the Haor Bachao Andolon, said that while permanent causeways would ease crop transport, caution is needed in canal excavation and construction works.
The project’s launch follows nearly five years of preparatory work, marking a significant step in transforming Bangladesh’s haor regions into productive agricultural landscapes.
1 day ago
Dilapidated relics cast a long shadow over justice at Amtali court
Two crumbling buildings, relics of a bygone era, have become a looming threat to nearly 20,000 people who frequent the Amtali Upazila Senior Judicial Magistrate Court in Barguna.
Built more than half a century ago, the abandoned structures now stand as silent hazards, shedding bricks and cement onto a passage used daily by litigants, lawyers and court staff.
A recent visit to the site paints a troubling picture. The narrow main entrance to the court runs directly between the two decaying, two-storey buildings, forcing thousands of visitors each day to pass beneath unstable walls. Chunks of masonry have already fallen, heightening fears that a sudden collapse could trigger a serious disaster.
The buildings were constructed in 1975 by the Bangladesh Agricultural Development Corporation (BADC) to store machinery and equipment.
Around 15 years ago, the local administration declared them abandoned. Since then, neglect has taken its toll. Weeds and creepers now blanket the walls, giving the structures a haunted appearance that unsettles court-goers even before they step inside.
Concerns over safety have been raised repeatedly by those who use the court.
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“Every day, thousands of people come and go through the court entrance at their own risk,” said Md Abubakar, a member of the court staff, adding, “These buildings are extremely vulnerable and could collapse at any moment, causing severe casualties.”
Justice seekers share the same anxiety.
Abdul Majed Master, who regularly visits the court, said the structures are not only an eyesore but a grave danger. “These abandoned buildings spoil the image of the court and pose a serious risk to life. They must be evicted immediately,” he said.
Former local ward councillor Jannatul Ferdous echoed the concern, warning that the hazardous condition of the buildings undermines the dignity of the court and endangers everyone passing through its entrance.
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2 days ago
Palm trees under the axe; Naogaon bypass pays an environmental price
Along the Naogaon bypass road, tall palm trees once stood like silent sentinels—lining the highway, softening the concrete stretch with shade and symmetry, and serving a purpose far beyond aesthetics.
Today, many of those trees bear blunt, shaved tops, their branches cut back abruptly, leaving locals fearful that a decades-old natural shield is slowly being destroyed, locals and environmental activists said.
The cutting of branches from around 750 palm trees by the Northern Electricity Supply Company Limited (NESCO) has sparked anger and concern among residents and environmental activists, who say the work was carried out without consultation and with little regard for environmental consequences.
For years, villagers along the bypass—from Rambhadrapur to Battali Boalia—had planted palm trees using seeds collected from nearby areas. Most of the trees are now between 20 and 30 years old.
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Over time, they transformed the two-kilometre stretch into a greener, cooler corridor, breaking the monotony of the road and offering protection against lightning, a known benefit of palm trees in Bangladesh.
But recent branch-cutting and top-shaving to accommodate electricity poles and overhead lines have changed the landscape dramatically.
During a recent visit to the area, the UNB correspondent observed that while several thousand palm trees stand along the stretch, around 750 have been visibly altered, with many appearing weakened. Residents fear the damage may be irreversible.
“It was not right for the electricity office staff to shave the tops of the palm trees,” said local resident Sakhawat Hossain, pointing towards several injured trees. “Some trees died after similar work before. Even when we protested, no one listened,” he said.
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Another local resident, Belal Hossain, echoed the frustration. “Palm trees take decades to grow. The electricity staff cut the branches and shaved the tops in just one day. They could have moved the poles slightly to save the trees, but instead they damaged them deliberately,” he said.
4 days ago
Endless delay pushes Barui Para Bridge cost to Tk 136cr; frustration grows
A project envisioned as a vital connectivity link for Narail has instead come to epitomise years of delay, mounting costs and unmet promises.
Construction of the Barui Para Bridge over the Nabaganga River in Kalia upazila has dragged on for nearly eight years, far exceeding its original one-and-a-half-year deadline.
With only partial progress achieved, local residents and commuters continue to endure daily hardship, growing increasingly frustrated as deadline after deadline slips by.
The prolonged delay has also come at a heavy financial cost. Originally approved at Tk 65 crore, the project’s budget has ballooned to around Tk 136 crore—almost two and a half times higher—largely due to design complications and repeated extensions.
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Once completed, the bridge is expected to significantly improve road connectivity between Narail Sadar and Kalia upazila, while also easing communication with at least three neighbouring districts. Until then, the unfinished structure stands as a reminder of stalled promises.
Supervised by the Roads and Highways Department (RHD), construction of the bridge began in 2018. Despite the passage of time, the project remains incomplete. The latest extension has set June next year as the new deadline.
So far, work on 11 piers, 11 spans and the approach roads on both sides of the river have been completed. However, the most critical section—the central portion of the bridge—remains unfinished. This includes three piers and three steel spans that are yet to be installed, locals said.
According to RHD sources, the PC girder bridge measures 651.83 metres in length and 10.25 metres in width. While the original contract value stood at Tk 65 crore, repeated design modifications and time overruns have pushed the total project cost to Tk 135.92 crore.
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The initial contractor, M/s Jamil Iqbal and Moinuddin Bashi Construction Company, was awarded the project in 2018. The construction process, however, faced major setbacks after the No-9 pier was washed away twice following collisions with bulkheads.
Unable to complete four piers and three spans of the main structure, the contractor spent Tk 61 crore before the Roads and Highways Department ultimately terminated the first-phase contract after multiple deadline extensions.
Subsequently, the RHD awarded the remaining work under a second-phase contract to Concrete and Steel Technologist Ltd.
The firm has reported that installation work has already begun on three imported steel spans, including a large 86.73-metre steel arch span sourced from abroad.
Abdul Wadud Khan Liton, a responsible official of the contracting firm, acknowledged the delays, attributing them to the complexities involved in importing specialised steel spans.
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“We expect to complete installation of two spans within this month. We are hopeful that the central arch span will be installed and handed over to the authorities before the deadline,” he said.
Narail Roads and Highways Department Executive Engineer Md Nazrul Islam said construction work has resumed in full swing after correcting earlier design flaws.
He expressed optimism that the long-awaited project would finally be completed by mid-June next year, paving the way for the bridge to be opened to traffic.
For now, however, residents of Narail continue to wait—watching an unfinished bridge stretch across the river, emblematic of both promise and prolonged delay.
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5 days ago
Sirajganj’s mustard fields bloom into golden seas, promise bumper harvest
Vast stretches of mustard fields across Sirajganj have burst into radiant shades of yellow, turning the district into a rolling sea of gold and offering a visual feast that is delighting visitors and farmers alike.
From late afternoon until dusk, the flowering fields have become a magnet for people of all ages. Youths, women and men are seen wandering through the blossoms, pausing to admire the view, capturing selfies against the glowing backdrop of nature’s seasonal spectacle.
The golden transformation is most striking in Tarash, Raiganj, Ullapara and the char areas—long known as the district’s ‘granary’—where mustard flowers sway gently in the winter breeze, painting the countryside with warmth and colour.
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According to the Department of Agricultural Extension (DAE), a cultivation target of 87,125 hectares was set for mustard farming across Sirajganj’s nine upazilas this season.
Farmers, however, have gone beyond expectations, bringing even more land under cultivation and raising hopes of a bumper harvest.
Mustard farming has expanded notably in the Chalan Beel areas, particularly in Tarash, Raiganj, Ullapara and Shahjadpur upazilas. Significant cultivation has also been recorded in Kamarkhanda, Kazipur, Belkuchi and Sirajganj Sadar upazilas, reflecting a district-wide surge in production.
Among the commonly cultivated varieties are Tori-7, BARI-14, Beena-9 and Beena-14. In the char areas, farmers have opted for the uric acid-free Kalania variety, well-suited to the region’s soil and conditions.
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Local farmers said government incentives have played a crucial role in encouraging cultivation. Seeds and fertilisers were distributed at fixed rates, while agricultural officers provided regular guidance and technical advice to ensure better yields.
With favourable weather prevailing, farmers remain optimistic about achieving a bumper output this season.
Adding to the vibrancy of the fields, honey collectors from different areas have already installed bee boxes among the mustard crops. Harvesting of mustard flower honey has begun, and collectors expect production to surpass last year’s levels due to the increased acreage under cultivation.
Deputy Director of the DAE, AKM Manjur-e-Maula, said farmers had brought more land under mustard cultivation this year compared to the previous season.
“We distributed free seeds and fertilisers among small and marginal farmers and provided necessary advice. If the weather remains favourable, there is a strong possibility of a bumper mustard harvest this season,” he said.
As Sirajganj’s fields glow under winter skies, the mustard bloom stands not only as a scenic delight but also as a symbol of agricultural promise and rural resilience.
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6 days ago
Tk 1,695cr project to transform Narayanganj into climate-resilient green city
The government has taken an ambitious project to transform Narayanganj into a modern, climate-resilient and liveable city addressing long-standing urban challenges while preparing the industrial hub for the pressures of rapid urbanisation and climate change.
The Tk 1,694.75 crore project titled the Narayanganj Green and Resilient Urban Development Project (NGRUDP), aims to overhaul the city’s water supply and drainage systems, revitalise public spaces and strengthen the institutional capacity of the Narayanganj City Corporation (NCC).
Initiated by the Local Government Division and to be implemented by the NCC, the project will run from April 2026 to March 2031 in the entire city corporation area.
Of the total cost, Tk 269.16 crore will come from the government, Tk 1,419.10 crore from project assistance and Tk 6.48 crore from NCC’s own funds.
Officials say the project has been designed as a comprehensive response to Narayanganj’s chronic problems—unsafe and inadequate water supply, severe waterlogging, environmental degradation and a lack of quality public spaces.
At the heart of the project is the goal of ensuring a round-the-clock supply of safe drinking water to residents by maintaining adequate pressure throughout the transmission and distribution network.
Equally significant is the plan to reduce Non-Revenue Water (NRW)—currently estimated at a staggering 65 percent—to just 15 percent through modern network management, infrastructure rehabilitation and improved monitoring.
Urban waterlogging, a persistent menace caused by unplanned urbanisation and the encroachment of natural canals and wetlands, is another key focus.
The project includes construction of new drains, rehabilitation of existing ones and restoration of canals to improve stormwater management and reduce water-borne diseases.
Beyond infrastructure, the initiative seeks to enhance the city’s liveability.
Parks, playgrounds and open spaces will be developed or renovated, while community centres and public places will be created to promote recreation, social interaction and youth engagement.
Officials said these plans will significantly improve the quality of urban life and foster community cohesion.
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Strengthening the institutional capacity of the NCC is another major pillar of the project.
Plans are in place to prepare master plans for urban development, sewerage and solid waste management to guide Narayanganj’s long-term growth in an environmentally responsible and socially inclusive manner.
Under the water supply component, new transmission pipelines and distribution networks will be installed, alongside rehabilitation of the Godnail Water Treatment Plant and existing production tube wells.
In specific zones, including DMZ-3 under DMA-5, 6 and 7, advanced infrastructure such as induced bank filtration wellfields, collector pipelines and transmission lines crossing the Shitalakkhya River will be developed.
Drainage works will include the construction and renovation of drains, installation of siltation chambers and canal lining, as well as extensive cleaning and rehabilitation of waterways.
To ensure regular maintenance, specialised equipment such as high-pressure jetting machines, dump trucks and power rodders will be procured.
The project also proposes setting up water ATM sheds across the city to improve access to safe drinking water along with the installation of modern IT systems to enhance service delivery and urban governance.
Formed as a city corporation in May 2011 through the merger of Narayanganj, Siddhirganj and Kadam Rasul municipalities, Narayanganj is one of the country’s most important industrial and commercial centres.
Its water supply system was managed by Dhaka WASA from 1991 to 2019 after which the NCC assumed responsibility.
Currently, water is sourced from both groundwater and surface water from the Shitalakkhya River, treated at the Godnail plant.
The new project builds on earlier groundwork laid in 2020, when the NCC, with support from the Asian Development Bank and the government, conducted a feasibility study to develop a long-term water supply plan.
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Planning ministry officials say the NGRUDP integrates water supply, drainage, environmental management and public space development into a single, holistic urban transformation effort.
Once implemented, they believe it will improve public health, environmental sustainability and social inclusion, while boosting economic vitality.
7 days ago
Jashore’s Gadkhali blooms with hope; flower business may cross Tk 400 crore
As winter settles in Jashore, Gadkhali, Bangladesh’s flower capital, bursts into vibrant blooms, drawing visitors and boosting both the local economy and tourism.
With the festive season approaching, including the New Year, flower growers and traders here are brimming with optimism for a flourishing season of sales.
Nestled in Jhikargachha upazila, Gadkhali and its surrounding villages—Panisara, Navaran and nearby areas—are now carpeted with blossoms, heralding the start of a vibrant flower season.
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Farmers have already begun harvesting a rainbow of blooms, while traders rush to dispatch them across the country.
According to Agriculture Department officials, the region boasts around 7,000 flower growers cultivating approximately 1,200 hectares, of which nearly 650 hectares are dedicated to flowers.
Eleven varieties thrive here, from the elegant gladiolus and fragrant tuberose to roses, gerbera, marigold, gypsy, rodstick, calendula and chrysanthemums.
8 days ago
Depositors stranded as merged 'Shariah giant bank' reels from liquidity crisis
The merger of five struggling Shariah-based banks into Sammilito Islami Bank PLC has yet to ease the financial strain on thousands of depositors, with a severe cash fund crisis persisting across branches.
The consolidation, which combined Exim Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank, and Union Bank, was launched amid high public expectations. Yet depositors continue to struggle to access their savings, highlighting an ongoing liquidity crunch.
Shobnam Begum, a retired Social Welfare Directorate officer, told UNB that she has been unable to withdraw her pension from Exim Bank’s Moghbazar branch for three months.
“Despite repeated assurances from the branch manager, I was turned away again this week,” she said, underscoring the growing hardship faced by ordinary account holders.
Another depositor at Social Islami Bank’s Panthapath branch described the ordeal as “an unprecedented example of bank looting,” after having to lobby persistently to access his own funds.
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Branches of the merged banks now operate in near silence, with many customers stopping visits altogether. Observers noted that at the Nayapaltan branch of Global Islami Bank, the only visitors were DPS depositors, reflecting a sharp drop in public trust.
Government Funds Unclear
Confusion surrounds the Tk 20,000 crore in government capital earmarked for the new bank. While some officials suggested the funds had been released, a First Security Islami Bank branch manager said they had yet to arrive at branch level. “We cannot process withdrawals without written instructions from the top,” the official said.
Bangladesh Bank Executive Director Arif Hossain Khan added that no government money has officially been disbursed for core capital formation.
He cautioned that while initial assistance was promised, there is no certainty about the timing.
Employee Uncertainty Looms
The merger impacts more than 18,000 employees, whose annual salary and benefits total nearly Tk 2,000 crore.
Currently private bank staff, these employees will transition into a government-owned institution. Questions remain over pay structure, benefits, and long-term job security, particularly given plans to privatize the bank within five years.
Capital Structure and Priorities
Sammilito Islami Bank PLC is expected to have an approved capital of Tk 40,000 crore, with Tk 35,000 crore paid-up. The government will contribute Tk 20,000 crore—half in cash, half via Sukuk bonds—while Tk 15,000 crore will be sourced from institutional depositors’ funds converted into shares through a bail-in process.
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Authorities have stressed that small depositors will be prioritised for repayments, with larger depositors’ funds released in phases.
Dr. Mohammad Ayub Mia, Chairman of the new bank, said restoring depositor confidence is the top priority. “The establishment of a government-owned Islamic bank sends a positive signal for the country,” he said, noting that technical teams are working to finalize the bank’s operational framework.
9 days ago
Delays push up cost of seed potato project to Tk 1,138.74 crore
The cost of a government project for strengthening the production, storage and distribution of quality seed potatoes has increased sharply due to repeated delays in implementation.
With the latest revision, the total estimated cost has risen to Tk 1,138.74 crore from the originally approved Tk 688.21 crore, according to official documents.
The project, titled “Strengthening Production, Preservation and Farmer-Level Distribution of Quality Seed Potato,” has undergone its second revision.
Alongside the cost escalation, the completion deadline has been extended by another two years.
The Ministry of Agriculture is the sponsoring ministry, while the Bangladesh Agricultural Development Corporation is implementing the project.
The project cost was first revised to Tk 727.43 crore.
Continued delays caused by extended construction schedules, additional infrastructure needs and higher operational expenses have pushed the proposed budget much higher, said officials.
Most of the revised cost will be financed by government funds with a smaller share will come from the BADC’s own resources.
The implementation period initially ran from September 2019 to June 2024.
It was later extended to June 2025 and has now been further prolonged until June 2027.
Officials involved in the project said the extended timeline has directly contributed to higher spending, particularly on cold storage construction, mechanisation, energy supply, farm-level seed production and transport-related costs.
One of the main reasons for the latest revision is the decision to construct additional cold storage facilities to meet the government’s target of distributing 60,000 tonnes of seed potatoes to farmers by 2030.
Existing and ongoing facilities under BADC are expected to provide storage capacity of just over 53,000 tonnes.
To address the shortfall, four additional cold storages will be built.
The project covers selected districts and upazilas in eight divisions.
Its objectives include expanding the availability of disease-free, high-quality seed potatoes, increasing modern storage capacity and improving farmers’ skills through training and demonstrations.
Despite the rising cost, the Planning Commission has viewed the revised project positively.
By June 2025, financial progress had reached nearly 88 percent, while physical progress stood at around 95 percent.
The commission said at successful completion of the project would help boost potato production, strengthen modern and sustainable storage systems and contribute to national food security.
Officials added that the revised timeline is necessary to ensure proper completion of newly added infrastructure, including cold storages in northern and central districts, renovation of older facilities and the introduction of solar power in selected storage units.
They said that without the extension, the intended benefits of the expanded investment would be difficult to achieve.
The project is expected to generate broader economic and social benefits by improving seed quality, stabilising yields, creating rural employment and increasing farmers’ access to improved potato varieties.
Potatoes are Bangladesh’s top vegetable crop and a key staple for food security. This year’s production reached a record 1.12 crore metric tonnes, surpassing national demand by around 22 lakh metric tonnes.
Cultivated area expanded by 8 percent year on year to 4.92 lakh hectares in fiscal year 2024–25, while total output rose 9 percent from 1.06 crore tonnes a year earlier, according to Bangladesh Bureau of Statistics.
10 days ago