The International Monetary Fund (IMF) has warned that businesses in the U.S. and other countries are bearing the major burden of retaliatory tariffs. IMF Communications Director Julie Kozack said global growth remained steady in the first half of the year despite tariff uncertainties, but early signs of a slowdown are now visible. Inflation trends remain mixed: tariffs have pushed up some U.S. goods prices, while inflationary pressures are still low in China and parts of Asia. Although U.S. companies are absorbing part of the tariff costs, it is unclear how long this can continue. The IMF will publish its next World Economic Outlook on October 14, addressing the impact of tariffs on U.S. inflation and growth, followed by further discussions in November’s Article IV consultation. Kozack also noted that the Federal Reserve’s September rate cut, aided by labor market flexibility, carries inflationary risks, urging the Fed to closely monitor upcoming data.

Economic Adviser Dr. Salehuddin Ahmed has said extortion has sharply increased in Bangladesh since August 5 of last year, stressing that without political commitment and an elected government, it cannot be controlled. Speaking to reporters at the Ministry of Finance on Tuesday, he explained that where extortion once demanded one unit, it now demands one and a half or even two. He noted that both new and old groups are involved, and many extortionists are also members of business organizations. This illegal practice has been pushing up commodity prices, he warned, though he emphasized that controlling it is not his ministry’s job, nor is the interim government inclined to pursue arrests. However, he expressed hope that inflation would decline to 7 percent by June next year despite these challenges.

The Rooppur Nuclear Power Plant is set to begin trial operations this December, confirmed Adviser Dr. Salehuddin Ahmed.

He noted that Bangladesh had earlier requested Russia to launch the project in November, but Moscow indicated a December start. The plant has already received its fuel, and a team from the International Atomic Energy Agency (IAEA) has provided recommendations, which are currently being implemented. Final approval from the IAEA is pending.

Electricity pricing per unit has not yet been finalized. Once operational, the two Russian-built VVER-1200 reactors will add 2,400 MW of power to Bangladesh’s national grid, marking a milestone in the country’s energy sector.

Economic Adviser Salehuddin Ahmed announced that part of Bangladesh’s smuggled funds could be repatriated by February, with the next elected government expected to continue the process.

He acknowledged that money laundering cases require international cooperation and time, as launderers are often highly skilled in evasion. Progress has been made, with several assets already seized and details of overseas accounts and passports obtained.

Discussions are ongoing with legal firms abroad, and a clearer picture of recoverable amounts will emerge soon.

Ahmed also confirmed government approval for importing rice from Myanmar, Thailand, and Vietnam amid concerns over potential supply disruptions, even though domestic reserves are adequate. Fertilizer prices have dropped slightly, while rice prices have recently declined. However, he admitted that overall market management has not been entirely successful.

A sweeping crackdown is underway at Islami Bank, resulting in the dismissal of 200 employees and the demotion of 4,971 staff to special duty (OSD) status over alleged misconduct and rule violations.
The shake-up follows a controversial hiring spree after S. Alam Group assumed control of the bank in 2017, when thousands were recruited without exams—many from Patiya, leading to nearly half of today’s workforce hailing from the same area.
A senior bank official admitted: “Unqualified appointments under S. Alam’s management ruined the bank. We are now verifying merit for the institution’s survival.”
Bangladesh Bank and court directives led to a mass competency test last Saturday, but of 5,385 summoned, only 414 appeared and continue regular duties. The 4,971 absentees were made OSD the next day, while 200 employees accused of spreading misinformation or opposing the test were terminated.
Bangladesh Bank Executive Director Arif Hossain Khan noted this was the first time in the country’s history an exam was used to justify layoffs: “Recruitment and evaluation are under a bank’s jurisdiction, but must comply with law and policy.”

The Government of Bangladesh and the Asian Development Bank (ADB) have signed an agreement worth $58.6 million in grants and $28.1 million in concessional loans to strengthen infrastructure and emergency services for Rohingya refugees and host communities in Cox’s Bazar.
ADB Country Director Edimon Ginting said the new funding builds on earlier assistance provided since 2018, aimed at enhancing water, sanitation, healthcare, roads, drainage, food security, electricity, and disaster resilience.
The project will also install solar-powered streetlights in Cox’s Bazar, restore sanitation systems in Bhasan Char, boost biogas production, and construct cyclone shelters in Hatiya. Additionally, food distribution centers will be developed with better facilities for women, children, and persons with disabilities.

Bangladesh exports pharmaceuticals to over 100 countries, but exports to the U.S. remain modest — just $20 million out of $210 million in FY2023. Former U.S. President Donald Trump’s threat of a 100% tariff on drug imports now casts uncertainty over expansion into this key market. Industry experts suggest Bangladesh may face both challenges and opportunities: while competitors like India and China could be hit harder, new openings may emerge for Bangladeshi producers. CPD Research Director Dr. Khandaker Golam Moazzem warned that higher tariffs would increase consumer costs and create new competition in alternative markets.

Economic Adviser Salehuddin Ahmed has warned that several Bangladeshi companies are manipulating income and expenditure figures, with some showing “remarkable skill” in siphoning money abroad. While acknowledging that not everything in the interim government is flawless, he noted that Bangladesh’s international image has improved. Speaking at an ERF event, he also urged stronger institutional efforts to improve journalistic standards, later inaugurating the ERF Institute’s new nameplate.

Imran Khan, Bangladeshi-origin U.S. investor and former Chief Strategy Officer of Snapchat, met Chief Adviser Prof. Muhammad Yunus and expressed strong interest in investing in Bangladesh. Currently the Chairman of Aleph Holding, Khan praised Yunus’s lifelong mission of poverty alleviation and called Bangladesh a “frontier market” with vast opportunities in fintech, healthcare, and social business. Yunus invited Khan to visit Bangladesh soon, to which Khan responded he is planning a trip in the coming months. Yunus also proposed that global investors dedicate 1% of their portfolios to social business or create a collective social impact fund — a proposal Khan welcomed.

For the first time, the International Monetary Fund has imposed a ceiling on Bangladesh’s foreign borrowing. According to IMF conditions, Bangladesh cannot take on more than $844 million in external loans in the current fiscal year. (Note: original amount in Bengali read as ৮৪৪ কোটি ডলার — depending on reporting conventions, this could mean $8.44 billion; the IMF document referenced sets quarter-by-quarter limits.)

The IMF country report, issued after a waiver for the fourth and fifth tranches totaling $134 million in June, lists the borrowing cap among the conditions for receiving the next disbursement. It specifies quarterly ceilings: up to $191 million in the first quarter, $334 million over six months, $434 million over nine months, and $844 million for the full fiscal year. The IMF will monitor foreign borrowing on a quarterly basis.

Last fiscal year the government borrowed $857 million in external loans. In July — the first month of the current fiscal year — Bangladesh drew $202.4 million. To meet IMF conditions, the government will need to restrain foreign borrowing relative to the previous year.

Trade through Panchagarh’s Banglabandha land port has been suspended for nine consecutive days, including weekends, in observance of Durga Puja. The closure began Friday and will continue until October 4. However, cross-border travel for passport holders remains open. Port manager Abul Kalam Azad said Indian traders and transporters from Fulbari agreed to halt import-export operations during the period.

Albania has expressed interest in recruiting both skilled and unskilled workers from Bangladesh to meet its growing labor demand.
In a meeting with Chief Adviser Dr. Yunus on Thursday, Albanian President Bajram Begaj said several companies have already applied to hire Bangladeshi workers. He added that cooperation could also expand in sectors like tourism.
Dr. Yunus welcomed the proposal, stressing Bangladesh’s potential to contribute with its young, energetic workforce. He urged Albania to simplify visa procedures, noting that Bangladeshis currently need to apply via New Delhi.
President Begaj assured that Albania is considering introducing an e-visa system for Bangladesh. He also stated that Albanian universities are ready to welcome Bangladeshi students under existing international admission programs.

Bangladesh received $2.23 billion in remittances in the first 24 days of September, marking a 17% increase compared to the same period last year.
Between September 1–17 alone, $1.77 billion was received, followed by another $460 million in the next seven days.
By comparison, August remittances totaled $2.42 billion, while July saw $2.48 billion. Notably, expatriates sent a record $30.32 billion during the 2024–25 fiscal year.

The Indian government has introduced new regulations to control rice exports to Bangladesh. From now on, non-basmati rice exports will only be allowed upon registering export contracts with India’s Agricultural and Processed Food Products Export Development Authority (APEDA). The directive applies to all new letters of credit (LCs), excluding those already backed by tenders.
Bangladeshi rice importer Dinesh Poddar noted that the new policy may slow down import procedures and increase costs, which could lead to higher retail rice prices in Bangladesh.

At the U.S.-Bangladesh Executive Business Roundtable, Chief Adviser Muhammad Yunus called on leading American corporations — including MetLife, Chevron, and Accelerate — to explore fresh investment opportunities in Bangladesh.

Press Secretary Shafiqul Alam said six Bangladeshi political leaders, part of Yunus’s delegation, were also introduced to U.S. business executives during the meeting.