Seventeen banks have preliminarily agreed to provide Tk41,000 crore for Bangladesh Bank’s Tk60,000 crore incentive package aimed at restarting long-closed factories and reviving a stagnant economy. The initiative comes as gas and electricity shortages disrupt industrial production, close factories and threaten jobs and exports. Bangladesh Bank is expected to sign formal agreements with the participating banks this week.

Bangladesh Bank announced the package on May 23. Commercial banks are to provide Tk41,000 crore, while Tk19,000 crore will come from the central bank’s refinancing fund. The largest allocation, Tk20,000 crore, is reserved for reopening closed factories, with private-sector borrowers expected to receive loans at an average interest rate of 7.5 percent. Thirty-seven banks have already signed agreements for loan disbursement under the fund.

Industry entrepreneurs warned that financing closed factories without resolving the energy crisis could increase risks for banks. Economists said the plan could help if eligible firms are selected properly and loans are monitored closely. Bangladesh Bank officials said a dashboard will track lending, verify whether firms are genuine and productive, and monitor the use of loan funds.

Trading operations at 22 Dhaka Stock Exchange, or DSE, trekhholder companies remain suspended over irregularities, including shortfalls in consolidated customer accounts and net worth. The report, published on August 17, 2026, said investors linked to the affected houses are facing difficulty recovering their money. DSE officials said the suspensions followed allegations that customer deposits in consolidated customer accounts, or CCAs, had been used unlawfully for personal purposes over years.

The report said five brokerage houses, including Crest, Banco, Tamha and Mashiur Securities, were involved in the alleged misappropriation of Tk607 crore in investors' funds. DSE found shortfalls of Tk126 crore at Crest, Tk128 crore at Banco, Tk140 crore at Tamha and Tk161 crore at Mashiur. It also found a Tk52 crore shortfall at NRBC Securities, although trading at that house remains open.

The Bangladesh Securities and Exchange Commission said investors' misappropriated money and shares should be promptly paid from the investor protection fund. It has directed stock exchanges to form special auditor panels for unannounced inspections, while the commission will also inspect brokerage houses. It said serious irregularities could lead to temporary closure or licence cancellation. A Mashiur director said asset sales were under way and the firm hoped to issue cheques within two to three months.

The government led by Prime Minister Tarique Rahman is preparing a 10-year energy master plan to address Bangladesh’s gas and power crisis over the long term. Rahman first publicly outlined the plan at a rally in Banshkhali, Chattogram, on August 9, and the proposal is expected to be presented to the national parliament. The stated aim is to reduce import dependence and set a defined framework for power generation, management and supply.

According to the article, partial repairs at an LNG terminal operated by Excelerate Energy have enabled 300 million cubic feet of gas to enter the national grid. Supply reached 460 million cubic feet from Saturday morning, with repairs expected to finish by August 19. Once completed, Excelerate and Summit LNG are expected to supply a combined 1,100 million cubic feet to the grid.

Short-term measures cited include maximizing coal-fired generation, pursuing a 10,000-megawatt solar target and installing solar panels on major government buildings. Fuel allocations for government officials have been cut by 30 percent. The article also says work is under way to improve Bapex technical capacity through international cooperation and connect gas from Bhola and other fields to the national grid.

Shipping, Road Transport and Bridges, and Railways Minister Sheikh Rabiul Alam said Mongla’s economy will undergo major change through an economic zone, an LNG station, power generation, a bridge and port-centred infrastructure. Speaking on August 16 at a civic reception organised by Mongla municipal BNP at the permanent port bus stand in Mongla, Bagerhat, he said work on the Mongla special economic zone would begin next October and could create jobs for about 60,000 people.

The minister said an LNG station would be built at Akram Point near Mongla Port, with gas transported to Mongla through an approximately 23-kilometre pipeline. He said there was also an initiative to use the gas for power generation. Ensuring gas supply, he added, could accelerate industrialisation, electricity production and port-based trade, potentially making Mongla an important industrial and commercial centre in the southwest.

Alam also cited plans for the country’s 10th Bangladesh-China Friendship Bridge over the Mongla River, saying it would be implemented quickly. He said new jetties, cold storage facilities and industrial infrastructure were planned at Mongla Port. Local BNP leaders at the event pledged commitment to Mongla’s development, establishing people’s rights and strengthening the party’s organisational capacity.

Bangladesh Bank has granted special permission to SS Power-1 Limited, an S Alam Group company, to open letters of credit for importing raw materials. Under a directive issued on Sunday, the company may open LCs through Rupali Bank only for raw-material imports after depositing a 100 percent margin. The measure addresses legal complications that arose because the S Alam Group is a loan defaulter.

The directive says Section 27KaKa(3) of the Bank Company Act will not apply to SS Power-1 Limited until December 31, 2027. Under that provision, an affiliated company cannot receive loans or credit facilities when its group is classified as a loan defaulter. A Bangladesh Bank official said the SS Power plant is currently shut and that the facility was granted under a government decision considering the current electricity shortage.

Bangladesh Bank issued the special directive after receiving approval from the Finance Ministry. The directive also states that neither the government nor Bangladesh Bank will assume liability for any loan or financing provided under the arrangement. Lender banks or financial institutions will not be able to seek future financial support from either authority against such loans. Earlier, Shinepukur Ceramics Limited and Abdul Monem Sugar Refinery received similar facilities.

Bangladesh Bank has withdrawn the requirement for importers to maintain a 100 percent cash margin when opening letters of credit for fruit imports. In a circular issued on Sunday and reported on August 16, 2026, the central bank said cash-margin rates for fruit import LCs can now be set based on the relationship between banks and their customers.

The bank said the decision considered public health and nutrition needs, import facilitation, and ensuring necessary supplies through a competitive market. It also cited improving desired stability in the country’s foreign-exchange rate and transactions in recent times, saying this had reduced the need for a full cash-margin requirement on fruit imports.

A September 5, 2024 circular had required 100 percent cash margins for LCs involving certain luxury goods and domestically substitutable imports amid global economic instability; fruit was included in that list. Bangladesh Bank said other provisions of the 2024 circular and subsequent related instructions remain unchanged. The decision is expected to reduce importers’ immediate cash needs and ease import financing, while potentially increasing fruit supply and competition in the market.

A week-long trade licence renewal service began on Sunday at the DCCI auditorium in Dhaka, jointly organised by the Dhaka Chamber of Commerce and Industry and Dhaka South City Corporation. DSCC Administrator Md Abdus Salam inaugurated the programme as chief guest. The service initiative is scheduled to end on August 20 and aims to make business-related procedures easier for chamber members under the city corporation.

At a discussion on local commerce, law and order, traffic conditions and trade licence services, service recipients called for lower renewal fees and automated, harassment-free renewal procedures. They also sought action to address traffic congestion and waterlogging, register electric autorickshaws and hawkers, clear occupied footpaths, and prevent extortion by political and organisational activists and law enforcement personnel.

DCCI President Taskeen Ahmed stressed effective digital systems and the introduction of multi-year renewals. Abdus Salam said trade licence fees could be reduced if NBR charges within the prescribed fee were lowered. He said a one-stop service is under consideration, while efforts continue to bring electric autorickshaws and hawkers under registration. Representatives of 10 DCCI member firms received renewed licence copies after the event.

China, the world’s largest oil importer, is gaining the ability to influence international oil prices by raising or reducing its purchases, according to a report published on August 16, 2026. The report says Beijing is emerging as a new rival to OPEC and its allies, whose production decisions have long been central to global oil-market pricing. During supply disruptions linked to the Iran war and the Strait of Hormuz crisis, China’s reduced imports helped limit price pressure.

From February through June, China cut crude oil imports by nearly half, to about 5.5 million barrels a day. Analysts cited in the report believe Brent crude could have risen by about another $30 without that move. China had built substantial crude reserves when prices were lower from late 2025 into early 2026, allowing it to rely on stockpiles rather than make large new purchases during the crisis.

The report also links China’s ability to manage oil demand to wider electrification, including electric vehicles, public transport and renewable energy use. OPEC remains highly influential, but internal changes and conflicting member interests are complicating its decisions. Supply disruptions, geopolitical tensions, concerns over weak demand, rising US oil inventories and changes in Chinese imports are all affecting prices.

Finance Minister Amir Khosru Mahmud Chowdhury said Bangladesh’s gas and electricity problems cannot be resolved overnight, and that any new arrangement would require at least two years. He made the remarks on Sunday afternoon at a seminar organized by AmCham at the InterContinental Hotel in the capital. He said the government was working to address the shortages because the economy could not move forward without electricity and gas.

The minister described the power and gas crisis as an inherited problem, saying it could not be solved within six months or a year. However, he said the government was not wasting time in pursuing solutions and was working tirelessly to ease the situation.

For the future energy system, the government is developing an energy mix combining renewable energy, gas and coal-based power generation, Chowdhury said. He also said the government was working to improve the business environment by reducing red tape, corruption and harassment in the tax system. The finance minister added that the country’s capital market was in a better position than before.

Prime Minister’s Chief Secretary A B M Abdus Sattar said Bangladesh’s new pay scale is in its final stage and could be announced at any time. He made the remarks while speaking with journalists at the Secretariat on Sunday. Sattar said 1.8 million government officials and employees have faced inflationary pressure because no pay scale has been introduced over the past 11 years.

He said that although the issue may be difficult for the public, the living standards of government employees need to be adjusted. The chief secretary identified the economy as the government’s main challenge. He said the government is planning to create employment and increase productivity to address the crisis.

Sattar also attributed the current gas, electricity and fuel crisis to the Middle East war and the previous government’s lack of alternative arrangements. He said the government is trying to build a diversified supply chain involving Russia, the Philippines, Indonesia and China. He did not provide a specific date for the pay-scale announcement or details of its structure.

Despite the peak season, the Meghna River in Tajumuddin, Bhola, is not yielding the expected hilsa catch, leaving more than 5,000 fishers unemployed and over 300 boat owners frustrated. The report, published on August 16, said catches are so low that fishers cannot recover their boats’ fuel costs, making it difficult for them to support their households.

According to the upazila fisheries office, Tajumuddin has 19,500 registered fishers, including more than 7,000 directly involved in catching fish. Nearly 5,000 of them are currently without work. At Sluice Gate, Gurinda Bazar and Choumuhani landing points, traders and fishers were seen passing idle time at fish depots. Supplies of other fish have also fallen, prompting many people to close their businesses.

Teacher and fish trader Md Monir said he stopped sending his three boats out after low catches, despite investing about Tk 2 million in boats and nets. Upazila Fisheries Officer Md Amir Hossain said underwater sandbars are disrupting the normal movement of hilsa coming from the sea. He said higher authorities have given assurances about pursuing dredging to remove the sandbars.

Residents in the Banshkhali hills of Chattogram say gas bubbles are emerging from leaks around three old wells and from cracks in the surrounding hillsides, renewing discussion about possible oil and gas reserves. The wells were drilled about six decades ago at Do-Chailla hill, in forest between the Jaldhi Range and Lohagara Chunati Range, about two kilometres east of Jaldhi municipal headquarters. The report was published on August 16, 2026.

Local sources and elderly residents said the then Pakistan government drilled three wells in 1960 through the Oil and Gas Development Corporation. They also said five more wells were later drilled with assistance from Korean and Russian experts. Locals claim surveys identified large reserves and that experts extracted about 300 barrels of crude oil, but these claims have not been independently verified.

Bapex geology department manager Alamgir Hossain confirmed that three wells had been drilled in Jaldhi hills. No effective extraction initiative has been taken since the 1960 survey, according to the report, and the reason the wells were sealed with lead remains unclear. Former Banshkhali mayor Kamrul Islam Hossaini called for new scientific exploration to assess the potential.

Bangladesh’s garment exports to the European Union fell sharply in the first half of 2026, with EU imports declining 16.43% year on year to €8.6448 billion from €10.3444 billion. The decline of about €1.70 billion came as the EU clothing market weakened between January and June, adding pressure to Bangladesh’s competitive position in the European market.

Eurostat data showed the EU’s total garment imports from global suppliers fell 9.70% to €41.10 billion during the six-month period, while import volume dropped 6.40% and average unit prices declined 3.53%. Bangladesh’s supplied volume fell 8.22%, while its average unit price dropped 8.94% to €13.88 per kilogram. Most major suppliers, including China, Turkey, India, Pakistan, Sri Lanka, Cambodia and Indonesia, also recorded negative growth.

There were signs of a limited recovery in June. EU garment imports from Bangladesh rose 0.87% that month to €1.3674 billion, as supply increased 6.53% despite a 5.31% fall in average prices. Vietnam was the exception over the six months, posting 0.36% growth as its average unit price rose 13.43% to €29.32 per kilogram.

Bangladesh’s banking sector recorded excess liquidity of more than Tk408,000 crore at the end of June, as private investment and demand for loans weakened. Bangladesh Bank data showed surplus funds rose from Tk327,877 crore in May and Tk378,135 crore at the end of March. Deposits continued to increase, but banks struggled to deploy the additional money because new investment activity remained slow.

Banking-sector sources cited gas and electricity shortages, high interest rates, political uncertainty and law-and-order conditions as factors reducing appetite for new investment. Greater caution by banks in lending has also slowed private-sector credit flow. Deposit growth stood at 10.74 percent in June from a year earlier, while private-sector credit growth fell to 4.47 percent, described in the report as a historic low.

Banks are placing funds in treasury bills and bonds, the call-money market, deposits with other banks and Bangladesh Bank’s Standing Deposit Facility. Bangladesh Bank recently reduced the repo rate from 10 percent to 9.5 percent and announced a Tk60,000 crore incentive package to support economic recovery and reopen closed factories. Banks holding excess liquidity are expected to provide Tk41,000 crore under the package.

Kuwait’s oil sector has been largely paralysed for several months as war in the Gulf region disrupts shipping through the Strait of Hormuz, sharply reducing oil exports. The disruption has created a major crisis for Kuwait, where oil accounts for more than 90 percent of government revenue and nearly all export earnings. The strait is Kuwait’s main route for oil exports.

Unlike Saudi Arabia and the United Arab Emirates, Kuwait has no alternative pipeline route to transport oil while bypassing the strait. Kuwait Petroleum Corporation chief executive Sheikh Nawaf Saud Al-Sabah described the situation as the country’s biggest oil-sector crisis since Iraq’s 1990 invasion. While the current war has not caused destruction on that scale, Kuwait’s oil infrastructure has been damaged.

KPC declared force majeure within days of the war’s start because it could not meet contractual obligations, then withdrew the notice in June. Iranian attacks damaged water-treatment and fuel facilities, while KPC headquarters was hit by a drone attack in April. Before the war, Kuwait produced slightly more than 2.6 million barrels daily and planned to reach 4 million barrels by 2040. KPC expects transport to normalise if Hormuz reopens.