Sheikh Bashiruddin, Trade Advisor, has acknowledged Bangladesh’s progress in the ready-made garment (RMG) sector but cautioned that the country lags behind in overall competitiveness.

Speaking at the Belt and Road Initiative in Bangladesh Exhibition, he noted that Chinese investment in Bangladesh has surged by 300 percent. “We must identify our weaknesses and advance through knowledge-sharing. By utilizing China’s expertise in production and packaging, we can expand our opportunities,” he said.

He further highlighted road safety concerns, stating that annual fatalities from road accidents in Bangladesh remain alarming. “Improving road infrastructure and transport management is a necessity,” he stressed.

Bashiruddin also revealed that a U.S. government delegation will arrive in Dhaka on Sunday to discuss tariff issues, focusing on how to restructure tariff frameworks for trade efficiency.

Economic Advisor Salehuddin Ahmed has confirmed that the government will purchase 300 vehicles for on-ground election operations. However, a previously proposed plan to buy vehicles for ministers has been rejected by the Finance Ministry.

Salehuddin also highlighted ongoing banking reforms, stating, “When banks merge, customers will face no inconvenience, and no funds will be lost.” The government formed an eight-member working committee on Monday to oversee the integration of five Shariah-compliant banks, potentially named “United Islami Bank,” following a policy decision by Bangladesh Bank.

On international labor and education initiatives, he added that 100,000 workers are set to be sent to Japan, emphasizing the need for language skills, technical proficiency, and opportunities for PhD graduates to secure employment there.

Shipping Adviser M. Sakhawat Hossain has said Bangladesh would have no objection to allowing foreign companies to operate the New Mooring Container Terminal at Chattogram Port if it benefits the country.

“Currently, there is no extortion in the port. If foreign operators take over, there will be none at all,” he remarked. He highlighted that port revenues have risen by 8.5 percent, with the Ministry of Shipping generating Tk 65,759.7 crore in revenue for FY2024–25, up 9.4 percent from the previous year.

Hossain also hinted at stepping down after the February elections, saying he would “wrap things up in January and go home after February.”

Bangladesh’s overall inflation rate fell to 8.29% in August, its lowest level in more than three years, according to BBS data.
The figure is down from 8.55% in July and significantly lower than 10.49% recorded a year earlier.
Food inflation edged up slightly to 7.60% in August from 7.56% in July, while non-food inflation dropped from 9.38% to 8.90%.
Despite the decline, wage growth slowed to 8.15%, marking the 43rd consecutive month where wage increases lagged behind inflation—further straining low-income households.

Bangladesh Bank Governor Ahsan H. Mansur announced that no bonuses will be issued at loss-making banks.
“Banks with capital below 10% and provisioning losses cannot declare dividends or bonuses,” he said, adding that loans overdue for three months would be classified as non-performing.

Mansur noted improvements in financial discipline, including a sharp decline in hundi transactions that once siphoned off 30% of remittances. He also confirmed that the central bank bought $1 billion in dollars last month without causing a price spike.

Despite progress, he admitted concerns over inflation and warned that 30% of loans may default by June. Talks with the government on merging five troubled banks will begin Sunday.

NVIDIA reported record revenue of $46.7 billion for Q2, a 56% increase year-over-year, largely fueled by AI data center demand. However, two customers contributed 39% of the total revenue, referred to as Customer A (23%) and Customer B (16%). Four other clients added 46% collectively. These customers are mainly OEMs, system integrators, or distributors, with cloud providers like Google and Amazon buying indirectly. Analysts caution that heavy reliance on few customers poses risks but foresee continued strong spending.

Bangladesh now has the highest rate of default loans in Asia, according to the latest report by the Asian Development Bank (ADB).

The report reveals that in 2024, a staggering 20.2% of all disbursed loans in Bangladesh turned into defaults, amounting to $20.27 billion—an alarming 28% increase compared to the previous year. The ADB has labeled Bangladesh as having the “weakest banking system in Asia.”

Within just one year, the country’s default loan ratio jumped by 11.2 percentage points, while neighboring countries like India, Pakistan, and Sri Lanka managed to reduce their bad loan proportions. Nepal saw only a slight increase of 0.9%.

Highlighting India’s case, the report notes that large-scale banking reforms helped bring its non-performing loans down from 3.4% to 2.5%.

The ADB advised Bangladesh to urgently adopt strict legislation, strengthen financial markets, implement swift policy actions, modernize the judicial system, and ensure transparency and investor confidence. Only then, it warned, can the mounting loan default crisis be brought under control.

Executive Chairman of the Bangladesh Investment Development Authority (BIDA), Ashik Chowdhury, has unveiled an ambitious vision to transform Matarbari and Maheshkhali into world-class commercial hubs akin to Shanghai and Singapore within the next 30 years.

The project, covering 33,000 acres, will be implemented in three phases—2025 to 2030, 2030 to 2045, and 2045 to 2055. Chowdhury stated that within the next 120 days, all administrative groundwork will be completed.

Once operational, the mega-project is expected to generate 2.5 million jobs and position Bangladesh as a global maritime hub.

The chairman of First Security Islami Bank (FSIB), Abdul Mannan, has accused S. Alam Group of siphoning off nearly Tk 38,000 crore through anonymous loans from the bank.

Speaking after a meeting with the Bangladesh Bank governor, Mannan said multiple audits confirmed the embezzlement, with much of the money already laundered abroad. He named Saiful Alam, chairman of S. Alam Group, as the prime beneficiary.

The massive loan default has pushed FSIB into a severe crisis. Bangladesh Bank is reportedly planning to merge five weak banks, including FSIB, raising concerns over job security for employees and deposit safety for customers.

Bangladesh’s Advisory Council has approved the closure of three land ports and suspension of operational activities at one more, in a decision taken at its 40th meeting chaired by Chief Advisor Dr. Muhammad Yunus.

The ports slated for closure are Chilahati (Nilphamari), Doulatganj (Chuadanga), and Tegamukh (Rangamati). Additionally, operations at Balla land port in Chunarughat, Habiganj, have been suspended until further notice.

Bangladesh’s foreign currency reserves have crossed $31 billion once more, fueled by higher remittance inflows, export earnings, and loan support from international organizations.
As of Wednesday, gross reserves stood at $31.33 billion, while reserves calculated under IMF’s BPM-6 methodology reached $26.31 billion.
Earlier in July, after clearing $2.02 billion in ACU payments, reserves had dropped to $29.53 billion. By August 24, gross reserves recovered slightly to $30.86 billion.

Bangladesh Bank Governor Dr. Ahsan H. Mansur has revealed that the demand for cash in the country is rising by nearly 10% each year, costing the government around Tk 20,000 crore annually in printing and distribution.

Highlighting the need for digital alternatives, he said:

“A smartphone is now essential for financial transactions, bill payments, and online services.”

The central bank is working to introduce affordable smartphones priced between Tk 6,000–7,000 to ensure universal access to digital financial services.

Dr. Mansur also called for lowering internet costs and improving service quality to accelerate digital adoption.

On housing, he emphasized:

Millions of new homes are still needed across the country.

Urban migration is irreversible, making affordable housing projects urgent.

Banks could utilize their idle land by partnering with developers.

Starting today, the United States has imposed an additional 25% tariff on Indian exports, bringing the total tariff rate to 50%. The U.S. Department of Homeland Security issued the order through Customs and Border Protection.
The Trump administration said the move was a penalty for India’s continued purchase of Russian crude oil, which helps fund Moscow’s war in Ukraine. The new tariff adds to the 25% already in effect since August 1. India’s exports worth nearly $87 billion—about 2.5% of its GDP—are expected to be directly affected.

Former U.S. President Donald Trump has threatened to impose tariffs of 200% or higher on Chinese goods unless Beijing increases its supply of magnets to the United States.

According to Al Jazeera, China remains highly sensitive about rare earth elements. In April, Beijing restricted exports of several rare minerals and magnets in retaliation to Washington’s tariff hikes. Currently, China controls about 90% of the global magnet market.

Meanwhile, Intel Corporation has announced that it will acquire a 10% stake in the U.S.-based semiconductor giant, which heavily relies on rare minerals. Interestingly, despite restrictions, China’s rare earth exports have reportedly increased in recent months.

The Bangladesh Bank has announced plans to issue new licenses for digital banks, raising the minimum paid-up capital requirement to Tk 300 crore, up from the previous Tk 125 crore.

According to a central bank circular, licenses will be granted under the 1991 Bank Company Act, while payment services will be regulated under the 2014 Bangladesh Payment and Settlement Systems Regulations.

Digital banks will operate without physical branches, offering services exclusively through apps and online platforms. Customers will be able to deposit and spend money digitally, while receiving access to virtual cards, QR codes, and other advanced tools. However, plastic debit or credit cards will not be issued.

Each licensed digital bank will be required to go public and release primary shares within five years of operation.