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Tag: Dhaka

  • Bangladesh Garment Factory Cooling Costs Recovered Within Four Years

    Bangladesh Garment Factory Cooling Costs Recovered Within Four Years

    Investments in cooling systems across Bangladesh garment factories pay back capital costs within four years, according to a study released on Sunday. Temperature data collected over a six-month period across eight manufacturing facilities in Dhaka showed that indoor heat stress erased an average of 4.1 per cent of annual factory revenue.

    Researchers at Cornell University’s Global Labor Institute found that physical modifications, including reflective roof paint, overhead insulation, and airflow ventilation, are commercially viable. Factory temperatures regularly climbed higher than outdoor readings, with the heaviest thermal load concentrated in pressing, ironing, and finishing lines.

    The Math on Shop Floor Cooling

    Jason Judd, executive director of the Global Labor Institute, noted that suppliers considering heat mitigation have struggled to weigh upfront spending against operational savings. Over the past year, apparel brands have sought verified payback timetables while discussing mitigation costs, emissions targets, and alternative energy sources with manufacturers.

    Apparel brands have spent years negotiating greenhouse gas targets and energy efficiency standards with suppliers. Adding physical climate adaptation to commercial contracts changes the financial equation. It shifts the focus from pure regulatory compliance to protecting factory throughput.

    Buyer Pricing and Cost Sharing

    Paying for factory retrofits creates friction between Asian garment manufacturers and Western fashion labels. Factory operators run on thin unit margins. They hesitate to fund facility upgrades without long-term order commitments or higher purchasing prices from international buyers.

    A heat resilience toolkit from the American Apparel and Footwear Association recommends that global brands co-fund factory modifications when direct commercial returns fall short of total setup costs. Nate Herman, executive vice president at the trade group, stated that brands must help protect workers across manufacturing networks as extreme heat events become frequent.

    Regional Export Exposure

    Earlier trade assessments showed severe climate risks across Asian manufacturing hubs. Heat stress and seasonal flooding threaten to wipe out $65 billion in combined apparel export earnings across Bangladesh, Cambodia, Pakistan, and Vietnam by 2030 if industrial zones fail to adapt physical infrastructure.

    Suppliers in Dhaka and regional production belts face a clear timeline to integrate cooling into capex plans. Retail buyers and factory operators will test the financial returns of these ventilation and insulation upgrades as contract pricing rounds open for upcoming production cycles.

  • City Group Seeks Capital Market Pivot After Amassing Tk 26,000 Crore in Bank Debt

    City Group Seeks Capital Market Pivot After Amassing Tk 26,000 Crore in Bank Debt

    Bangladeshi consumer goods giant City Group is restructuring a portion of its Tk 26,000 crore bank debt after rapid expansion and currency headwinds left it squeezed across three dozen lenders.

    The maker of Teer flour, suji and soybean oil plans to raise up to Tk 1,500 crore from the capital market through an initial public offering, private equity, preference shares, corporate bonds or Sukuk.

    City Group built a household staple empire over decades, but a weaker taka, delayed factory utility hookups and aggressive capital expenditure pushed its balance sheet into trouble. Around 36 commercial banks now carry the exposure. Rather than relying entirely on bilateral bank roll-overs, the group announced in mid-August that it would tap outside investors for long-term equity and debt instruments to rebalance its funding base.

    The Imbalance in Corporate Funding

    The conglomerate’s liquidity squeeze exposes the structural fragility of private sector financing in Bangladesh, where commercial banks supply nearly 99 percent of corporate funds while capital markets generate just 1 percent. Industrial term-loan disbursements climbed to Tk 97,138 crore in fiscal 2025. By contrast, businesses raised only Tk 302 crore through initial public offerings and rights issues during the same twelve-month stretch.

    Equity markets remain sidelined across the country’s industrial sector. At the end of June, the Dhaka Stock Exchange market capitalization stood at 5.7 percent of national gross domestic product, ranking as the lowest ratio in South Asia. A World Bank survey showed that only 0.5 percent of local businesses view equity as a viable funding route, compared with 6.9 percent in neighboring India.

    Balance Sheets Under Borrowing Pressure

    Bank loans offer fast deployment, often clearing internal approvals within three months, whereas equity listings demand nine months or more alongside rigorous disclosure filings. That speed has created deep structural hazards for supply chain operators and consumer goods manufacturers across the domestic market. Defaulted loans across the banking sector exceeded Tk 600,000 crore by the end of June, representing 32.78 percent of total outstanding credit.

    Rising interest rates are accelerating the strain on operating margins. An assessment of 166 listed companies showed net finance costs surged roughly 26 percent year on year to Tk 8,871 crore in fiscal 2024-25. Perpetual loan rescheduling has shielded unhedged borrowers from formal insolvency, but it has locked commercial banks into carrying high corporate default risk on their balance sheets.

    Corporates do not stop borrowing because they do not face big problems if they default; rather, banks find ways to keep the corporates alive.

    Regional Lessons in Conglomerate use

    Heavy reliance on bank lending mirrors earlier developmental bottlenecks seen across East and Southeast Asia. South Korean chaebols expanded rapidly on bank use before the 1997 financial shock forced aggressive balance-sheet restructuring, reduced cross-guarantees and deeper capital market compliance. Indonesia faced a similar crunch during the same period, subsequently cutting corporate bank debt dependence down to 40 percent of business financing by 2007.

    Developing viable non-bank financing requires deep structural liquidity and verifiable reporting frameworks. Malaysia expanded its capital market to RM4.3 trillion in 2025 by creating active Sukuk and local corporate bond ecosystems with zero recorded defaults that year. Replicating that stability in Dhaka requires regulators to streamline listing timelines without compromising investor protections.

    Next Steps for Industrial Capital

    City Group’s Tk 1,500 crore fundraising rollout will serve as a test case for whether Bangladesh’s major private conglomerates can transition from short-term bank reliance to public and institutional capital. Regulators now face the task of tightening single-borrower exposure ceilings while speeding up bond and equity approvals. The key benchmark to track is whether domestic institutional funds step up to absorb the group’s planned issuance before the next debt restructuring cycle closes.

  • Biman Bangladesh Negotiates Purchase of 10 Airbus Aircraft

    Biman Bangladesh Negotiates Purchase of 10 Airbus Aircraft

    Negotiations over a proposed purchase of 10 Airbus aircraft by Biman Bangladesh Airlines are ongoing, French Ambassador to Bangladesh Jean-Marc Séré-Charlet confirmed at a discussion in Dhaka.

    The carrier is preparing agreements for 21 additional aircraft, comprising 11 Boeing jets and 10 Airbus planes, including four A350-900s and six A321neos, following a September 16 report by The Daily Star.

    “Biman has chosen Airbus for technical reasons, not for political reasons,” Séré-Charlet said at the event organised by the Diplomatic Correspondents Association, Bangladesh.

    Fleet split across two manufacturers

    Historically, Biman has relied on Boeing for its long-haul operations. Splitting the new intake between Boeing and Airbus creates a dual-supplier structure. This setup balances delivery slots and preserves operational flexibility. The carrier is now drafting agreements for 21 total aircraft to replace aging planes and open new international routes.

    European diplomats continue to push for access in Bangladesh’s state procurement processes. Séré-Charlet noted France expects a fair operating environment for European companies competing against American planemakers in the country.

    Widebody and narrowbody balance

    Under the Airbus plan, four long-range A350-900 widebodies join six A321neo narrowbodies. The twin-aisle A350s will fly high-density routes to Europe and the Middle East, serving steady Bangladeshi diaspora traffic. Meanwhile, the A321neos will handle medium-haul regional flights across Asia.

    Operating a dual fleet increases overhead for maintenance tooling, spare parts inventories and pilot type ratings. Even so, airlines across South and Southeast Asia accept these complexities. Doing so hedges against single-manufacturer production delays.

    Shifting regional fleet dynamics

    Carriers across South Asia are overhauling their order books to capture growing outbound passenger and cargo demand. Regional competitors have already placed large multi-year orders for modern twinjets. Biman now faces direct pressure from Gulf carriers and regional airlines flying latest-generation widebodies into Dhaka.

    Securing modern delivery slots improves seat economics and reduces fuel burn per available seat kilometer. It also shields Biman from fuel price volatility on high-frequency labor-migration routes across the Gulf.

    What happens next for Dhaka procurement

    Biman began drafting the technical frameworks for the 21-aircraft intake in September. Government approval and financing terms are required before the airline can convert the commitments into firm purchase contracts.

    Delivery timetables and engine selections will hinge on ministerial sign-offs in Dhaka as trade talks wrap up between Bangladesh, European suppliers and US manufacturers.

  • Dhaka Telecom Thefts Mount as Mobile Operators Report 170 Base Station Losses

    Dhaka Telecom Thefts Mount as Mobile Operators Report 170 Base Station Losses

    Bangladesh mobile operators lost 170 base station cards and thousands of metres of power cables in Greater Dhaka this year. The spike prompted an urgent petition to regulators for police protection.

    Site thefts during the first eight months of 2026 jumped sharply from the 47 base transceiver station cards stolen across the country throughout 2025.

    The Association of Mobile Telecom Operators of Bangladesh lodged an appeal on September 16 with the Bangladesh Telecommunication Regulatory Commission. The industry group called on the regulator to coordinate with national law enforcement agencies to break up criminal networks targeting cell tower hardware. Stolen components include remote radio units, power cables, base transceiver station cards, feeder cables, and backup lithium and lead-acid batteries.

    Losses hit both private carriers and state-run infrastructure across industrial and residential zones. Incidents concentrated heavily in Mohammadpur, Badda and Lalbagh within Dhaka, alongside peripheral manufacturing hubs in Narayanganj, Narsingdi, Savar and Gazipur. Grameenphone reported 75 BTS cards stolen through August, up from six in 2025. Robi Axiata recorded 48 stolen cards against 10 in the previous year. Banglalink lost 29 cards compared with nine in 2025. State-owned Teletalk reported 18 stolen cards, down slightly from 22.

    The Breakdown Across Dhaka Towers

    Power transmission cabling forms the second major target for scrap and resale rings operating around the capital. Grameenphone reported losing 507 metres of power cable by August, compared with 153 metres in 2025. Robi lost 417 metres, up from 211 metres. Banglalink recorded 291 metres lost against 189 metres last year. Teletalk reported the heaviest physical losses, with 6,749 metres of power cable cut and stolen from its installations by August.

    Active transmission gear suffered heavy losses as well. Robi logged 157 stolen remote radio units during the eight-month span, compared with 44 across all of 2025. Teletalk lost 76 units. Banglalink and Grameenphone reported 41 and 33 stolen units respectively. Battery losses totalled 756 units across the industry up to August. Teletalk accounted for 452 units, while Robi recorded 253.

    Operational Fallout for Digital Commerce

    Stripped equipment creates direct operational bottlenecks for digital commerce and retail transactions. When thieves sever power cables or pull base station cards, towers drop offline immediately. Backup generators and batteries cannot bridge the gap when auxiliary electrical systems are stripped simultaneously. For suburban retail clusters, mobile financial service agents and distribution warehouses, blackouts halt point-of-sale systems, digital wallet transfers and real-time inventory tracking.

    Replacing active radio units and base station electronics presents a steeper challenge than standard line repairs. Tower operators cannot source specialized radio frequency modules or brand-specific station cards from domestic retail suppliers. Carriers must draw on imported spare parts inventories. They burn cash on unplanned capital expenditure while waiting on international shipments that face customs clearances and shipping lead times.

    During the last 20 months, approximately 16,000 metres of power cable, more than 2,000 batteries, and over 500 RRUs have been stolen.

    Security Measures and Scrap Market Networks

    Carriers have deployed reinforced physical enclosures, electronic tamper alerts and closed-circuit monitoring at high-risk rooftop and ground sites. These measures raise capital costs per tower without eliminating breaches by well-equipped scrap rings. Industry representatives point out that stopping tower theft requires targeting the secondary market of illicit buyers, scrap metal aggregators and unauthorized repair workshops that purchase commercial telecom gear.

    Telecom asset theft in Bangladesh has flared periodically as metal scrap prices and electronics component costs rise. In 2019, industry records showed 2,195 tower theft incidents during 2018. Over the past 20 months, cumulative equipment losses reached roughly 16,000 metres of cable, more than 2,000 batteries and over 500 remote radio units across the four operating networks.

    Regulatory Action and Police Coordination

    Regulators at the telecommunications commission must now decide whether to establish a dedicated multi-agency enforcement task force with district police commands. Operators are tracking whether joint inspection raids on known scrap clearing hubs in Gazipur and Narayanganj begin before the final quarter of the year.

  • Bangladesh Taka Strengthens Against US Dollar After 5.5 Years

    Bangladesh Taka Strengthens Against US Dollar After 5.5 Years

    The Bangladeshi taka has strengthened against the US dollar, ending a continuous depreciation trend spanning five and a half years, according to a report from Bangladesh Bank.

    Between August 30 and September 17 this year, the local currency appreciated by 0.77 percent against the greenback as the dollar rate dropped from a record high of Tk 123.95 to Tk 123.00.

    On a point-to-point basis from June last year to June this year, the taka gained 0.06 percent, reversing an unbroken slide from 2021 that had devalued the currency by 45.05 percent.

    Reversing a Five-Year Downward Spiral

    Dhaka saw its first sustained currency recovery since late 2020. That year, lower pandemic import bills and solid remittances allowed the taka to firm slightly to Tk 84.80.

    Import pressures resumed in 2021, pushing the dollar to Tk 85.80 by year-end. Post-pandemic commodity shocks and the war in Ukraine accelerated the slide in 2022, lifting the dollar rate 23.37 percent to Tk 105.85. The taka fell further to Tk 110.00 in 2023, Tk 120.00 in 2024, and Tk 122.33 by December 2025.

    Over the five-year span, the greenback climbed by Tk 38.20. That loss squeezed corporate margins across manufacturing hubs. It also inflated domestic retail prices on consumer staples.

    Divergence from Regional Currencies

    Trends across South and East Asia diverged from Bangladesh during the same period. Between June 2025 and June 2026, the South Korean won dropped around 11 percent against the greenback. The Sri Lankan rupee shed more than 10 percent.

    India’s rupee weakened by nearly 9.5 percent over the 12-month period, while the Indonesian rupiah lost about 9 percent. Modest gains appeared elsewhere. Both the Malaysian ringgit and Chinese yuan gained nearly 4 percent, and the Pakistani rupee firmed by about 2 percent.

    These divergent currency paths reshape cross-border sourcing costs for regional retailers and consumer goods manufacturers. Retailers buying finished goods and packaged foods from India face lower dollar procurement costs. Meanwhile, Bangladeshi factories buying dollar-denominated raw materials gain immediate relief on input invoices.

    Relief for Importers and Retail Supply Chains

    Lower landed import bills directly benefit buyers of refined fuel, edible oils, industrial chemicals, and wheat. Importers spent the past three years absorbing double-digit depreciation that pushed landed costs to records.

    Steady foreign exchange pricing removes the immediate need for emergency shelf-price increases at retail. Lower import costs ease pressure on household purchasing power. That buying power had contracted under cumulative double-digit retail inflation.

    Local-currency balance sheet losses will narrow for domestic conglomerates holding dollar-denominated commercial debt. Servicing foreign loans grew far more expensive as the dollar climbed from Tk 85 to nearly Tk 124 over five years.

    Trade Balance and Reserve Targets Ahead

    Maintaining currency stability now rests on managing import demand and keeping remittances flowing through official channels. Bangladesh Bank has relied on targeted dollar purchases to rebuild gross reserves. It avoided defending fixed pegs through emergency dollar sales.

    Corporate treasurers and retail supply directors are tracking import volumes heading into the final quarter. Any surge in capital goods orders or energy demand will test the central bank’s ability to hold the exchange rate near Tk 123.

  • Bangladesh Raises Fuel Prices by up to 17.4 Percent as Import Costs Surge

    Bangladesh Raises Fuel Prices by up to 17.4 Percent as Import Costs Surge

    Bangladesh raised domestic fuel prices by up to 17.4 percent on Monday, targeting state energy import losses as crude prices and ocean freight rates climbed.

    The price adjustments took effect immediately across petrol pumps nationwide, lifting diesel to 135 taka ($1.11) per litre from 115 taka.

    Under the revised schedule, 95-octane gasoline increased to 165 taka per litre from 145 taka, petrol climbed to 160 taka from 140 taka, and kerosene rose to 155 taka from 135 taka. The Energy Ministry said international fuel prices have more than doubled since March 2026, while shipping disruptions linked to Middle East conflict increased landed supply costs.

    Cutting State Losses at the Pump

    State-owned Bangladesh Petroleum Corporation accumulated losses of 228.76 billion taka ($1.9 billion) between March and August 2026. Ministry officials estimate the revised retail pricing will reduce the agency’s annual deficit by approximately 100 billion taka. The adjustment aims to protect central foreign exchange reserves and discourage cross-border fuel smuggling to neighbouring markets where retail prices trade higher.

    Dhaka continues to fund heavy subsidies on imported liquefied natural gas to maintain power generation and industrial gas distribution. Rising procurement costs across both liquid fuels and gas have steadily eroded the state treasury balance over the last two quarters.

    Factory Floors Face Margin Compression

    For consumer goods manufacturers and the apparel export network, the price increase hits operations already coping with unstable grid power and factory fuel rationing. Garment suppliers rely on diesel generators to prevent assembly line stoppages during power cuts, meaning higher pump prices translate directly into elevated unit production costs.

    Mohiuddin Rubel, additional managing director of Denim Expert Ltd, which supplies international fashion retailers including H&M, noted that fast turnaround times and low manufacturing overhead remain critical to retaining brand contracts.

    “Staying in business means staying competitive: the buyer who gets a product onto the shelf fastest and cheapest wins, and gas, power, and fuel costs all feed into that equation,” said Mohiuddin Rubel, additional managing director of Denim Expert Ltd.

    Transport Rates and Consumer Inflation

    Domestic trucking fleets and river transport operators face immediate overhead increases that will push up wholesale and supermarket shelf prices across Dhaka, Chittagong, and secondary cities. Higher logistics expenses reduce operating margins for retail distributors who are unable to pass full cost increments onto price-sensitive shoppers.

    Anwar-ul Alam Chowdhury, president of the Bangladesh Chamber of Industries and chairman of apparel exporter Evince Group, warned that elevated operating expenses risk prompting industrial downsizing and job cuts across production clusters.

    The Third Adjustment Since April

    Monday’s increase represents Dhaka’s third upward fuel revision in five months, following earlier price rises enacted in April 2026 and June 2026. Each successive step attempted to narrow the gap between fixed domestic pump rates and volatile global energy benchmarks without extinguishing factory activity.

    The Energy Ministry will review Bangladesh Petroleum Corporation import invoices and domestic refinery runs next quarter to determine whether the 100 billion taka annual loss reduction target holds.

  • Bangladesh Fertiliser Dealers Demand Commission Be Doubled to Tk 200

    Bangladesh Fertiliser Dealers Demand Commission Be Doubled to Tk 200

    Fertiliser dealers across Bangladesh want the government to double their sales commission from Tk 100 to Tk 200 per sack. They are also demanding an immediate freeze on appointing new distributors.

    Operating costs, freight rates, and fuel prices currently force dealers to lose Tk 50 to Tk 55 on every sack they sell.

    Speaking at a Dhaka press conference on Monday, Bangladesh Fertilizer Association chairman Md Mosharraf Hossain said distributors have sought an updated fee structure for 18 years. Allowances stayed flat while retail overheads surged across rural areas.

    Rising Freight and Margin Squeeze

    In 2008, the government set a transport and sales commission of Tk 100 per sack. Dealers netted Tk 25 to Tk 30 after paying for freight, loading, and handling.

    Heavy transport inflation has wiped out those margins. Distributors now cover shipment shortfalls with their own working capital.

    Last-mile stockists bear the brunt of the losses. To survive, rural dealers cut inventory, delay bulk purchases, and reduce deliveries to remote farming areas.

    Delayed Relief and Breakeven Gaps

    Authorities approved a Tk 50 increase per sack, but the change will not take effect until July 1, 2027. Hossain said that increment will merely bring dealers to breakeven.

    Association leaders demand an immediate Tk 100 increase instead. Without it, licensed dealers warn they will shut down, endangering fertilizer supply during peak planting seasons.

    Losses among licensed operators also push trade into the unregulated grey market. Bottlenecks will follow if compliant businesses exit.

    Legal Challenge Against New Policy

    Dealers have challenged the Integrated Policy on Fertiliser Dealer Appointment and Distribution-2026 over conflicting clauses. The association filed a High Court writ petition on September 2.

    Following the petition, the court issued a 60-day rule directing authorities to resolve the issues. Hossain noted that district monitoring committees continue recruiting new dealers anyway.

    Adding distributors during a margin crunch splits sales among more players. Turnover drops, making survival harder for everyone.

    Supply Risks for Rural Distributors

    The Ministry of Agriculture has not scheduled talks on dealer appointments or commission timelines. Hossain warned that inaction risks halting fertilizer deliveries across key agricultural districts.

    Market operators now watch to see if court pressure forces the ministry to the table before the 60-day window closes.

  • Turkish Airlines Marks 15 Years in Bangladesh with Dhaka Half Marathon

    Turkish Airlines Marks 15 Years in Bangladesh with Dhaka Half Marathon

    Turkish Airlines drew roughly 5,000 runners to Dhaka’s Hatirjheel circuit on Saturday. The race marked 15 years of the carrier’s commercial flights in Bangladesh.

    The event, organised alongside sports management outfit ActivePulse, brought international and local participants to the capital’s central water-ring corridor. It showed a transport link that grew alongside trade between Ankara and Dhaka.

    Fifteen Years of Capital Flights

    Islam Gure, Turkish Airlines general manager in Dhaka, led the delegation with airport officials and Turkish diplomats. Hazrat Shahjalal International Airport executive director Group Captain Ragib Samad met airline station heads and commercial partners at the finish line.

    Route planners mapped the Hatirjheel course for elite runners and community fitness groups across several distance categories. ActivePulse founders Tanvir Ahmed and Morsaline Ahmmed managed logistics and course setup across the lakeside venue.

    For the past 15 years, we have been connecting Bangladesh with Türkiye and the rest of the world. But for us, it has never been only about flying from one destination to another. It is about connecting people, bringing cultures closer together, building friendships and creating new opportunities.

    Corporate Footprint and Cargo Links

    Saturday’s run put Turkish corporate ties across Bangladeshi manufacturing and retail on display. Executives from home-appliance maker Singer Beko Bangladesh and energy supplier United Aygaz LPG joined airline leaders at the event.

    Passenger traffic between Dhaka and Istanbul supports an air freight corridor into Europe. Turkish Cargo station manager Mohammad Arif Hossain Khan and airline accounting manager Semih Kulcu attended the race. Their division continues to move Bangladeshi garment exports to European retailers via belly-hold and dedicated freighter space.

    Bilateral Trade Flow

    Long-haul carriers out of Dhaka face fierce competition from Gulf rivals like Emirates, Qatar Airways and Saudia. Turkish Airlines defends its market share by selling single-hop connections through Istanbul into secondary European cities. That routing bypasses Middle Eastern hubs for time-sensitive apparel and textile cargo.

    Direct scheduled flights to Dhaka began 15 years ago. The carrier steadily added frequencies for business travellers, migrant workers and cargo volume. Over the same span, Turkish brands stepped up direct investments in Bangladeshi assembly plants and appliance retail networks.

    Hazrat Shahjalal International Airport is now completing its third terminal. That expansion will set future flight slot allocations and cargo handling capacity for every long-haul carrier operating in Dhaka.

  • CAAB Issues First Aviation Security Order Ahead of October 26 ICAO Audit

    CAAB Issues First Aviation Security Order Ahead of October 26 ICAO Audit

    The Civil Aviation Authority of Bangladesh has issued the country’s first dedicated Air Navigation Order on aviation security ahead of an International Civil Aviation Organization audit scheduled to begin on October 26.

    Gazetted on September 3 under the Civil Aviation Act, 2017, the order establishes binding rules and procedures for aviation operations, making violations punishable offences under the act.

    Codifying Airport and Passenger Rules

    The new instrument consolidates requirements for airlines, ground handling staff, baggage screening, aircraft access, and cargo processing. It establishes a four-tier classification system for disruptive passenger behavior. That scale extends from verbal threats to attempted cockpit breaches.

    Airlines now hold explicit authority to refuse check-in or offload passengers at boarding gates. Ground handlers must remove hold luggage and de-manifest passengers denied travel before departure.

    Cabin baggage rules formally cap liquid containers at 100ml inside a single one-litre transparent bag. Passengers who decline physical screening or baggage checks face immediate denial of boarding.

    Staffing Gaps and Equipment Upgrades

    Special Branch police vetting is now mandatory for all personnel with unescorted access to security-restricted zones. Meanwhile, the Civil Aviation Authority of Bangladesh continues to rely on the Armed Police Battalion for perimeter and landside security while internal hiring continues.

    Procurement teams have added 25 explosive trace detectors sourced from China, alongside dual-view baggage screening systems and four full-body scanners at Hazrat Shahjalal International Airport in Dhaka.

    If I cannot answer that question, I lose marks, and that affects the overall grading, said Air Commodore Md Asif Iqbal, member for security at the authority.

    Replacing the 1984 Framework

    Dhaka is using the security order to overhaul the Civil Aviation Rules, 1984, which have governed the sector for four decades. The older framework left multiple operational directives without direct statutory backing, a deficiency flagged during previous multilateral oversight rounds.

    For regional airlines and cargo carriers operating into Dhaka, the shift standardizes compliance checks across passenger terminals and freight sheds. Legal clarity reduces operational discretion at checkpoints. However, equipment shortages at secondary hubs remain an active bottleneck for ground operators.

    The International Civil Aviation Organization begins its on-site assessment of Bangladesh’s aviation security systems on October 26.

  • Petrobangla Halves Net Worth Requirement to $50 Million for Spot LNG Suppliers

    Petrobangla Halves Net Worth Requirement to $50 Million for Spot LNG Suppliers

    Petrobangla has slashed its financial and experience thresholds for spot liquefied natural gas suppliers, halving the required net worth to $50 million to ease severe national fuel shortages.

    The state-run energy company now demands just one completed supply contract with no minimum cargo volume, dropping a previous rule requiring 0.5 million tonnes delivered across two separate years.

    Lower barriers for commodity traders

    Under the revised criteria issued on August 29, Petrobangla eliminated requirements for suppliers to own or charter an LNG vessel, prove experience with floating storage and regasification units, or guarantee lean gas containing at least 91 percent methane. Applicants no longer need to verify an absence of failed cargo deliveries over the past five years or limit their arbitration losses to three awards. For joint ventures, the lead partner must cover 75 percent of the $50 million financial capacity, while partners supply the remaining 25 percent.

    “We are looking for more participants in the spot market,” Petrobangla Director for operations and mines Md Shoyeb said.

    Pressure on industrial output

    For industrial manufacturers and export supply chains across South Asia, reliable gas flow dictates factory uptime and power tariffs. Bangladesh faced severe disruption in August when average gas deliveries dropped to 2,235 million cubic feet per day against official demand of 3,860 million cubic feet per day, the lowest August supply figure in a decade. Terminal outages and global supply bottlenecks forced emergency spot purchases at more than $28 per million British thermal units, up sharply from historical norms of $10 to $12 per MMBtu.

    Lowering entry barriers allows smaller trading houses without dedicated fleets to bid against established multinational commodity merchants. The tradeoff sits squarely in operational risk: by waiving past delivery guarantees and vessel charter proofs, Petrobangla accepts higher exposure to cargo defaults and scheduling failures when spot vessel availability tightens.

    Procurement shift since 2024

    The revised criteria follow a governance overhaul that suspended the Quick Enhancement of Electricity and Energy Supply Act, which previously allowed direct, non-tender contracts. The interim administration shifted spot purchases under the Public Procurement Rules 2025, expanding the active spot tender roster to 30 companies from an earlier pool where purchases were concentrated among five suppliers.

    Applications for the new supplier pool close on September 15.

  • Bangladesh Plans New Effluent Plant to Protect $5 Billion Leather Export Target

    Bangladesh Plans New Effluent Plant to Protect $5 Billion Leather Export Target

    Bangladesh will build a new central effluent treatment plant at the Savar tannery estate to protect its target of reaching $5 billion in leather and footwear exports by 2030.

    The existing facility processes between 14,000 and 18,000 cubic metres of liquid waste a day, well below its designed capacity of 25,000 cubic metres. Volumes surge to 45,000 cubic metres daily during peak slaughter periods such as Eid-ul-Azha, overwhelming the site and blocking factories from securing international environmental certifications.

    Overhauling the Savar Estate

    Commerce and Industry Minister Khandaker Abdul Muktadir said the government will select a private operator through an open tender to construct and run the replacement facility. Larger tanneries will receive financial and technical backing to build individual treatment units, while non-compliant operators will receive assisted exit packages to leave the cluster. Tanneries that stay must secure certification from the Leather Working Group.

    Infrastructure bottlenecks extend beyond liquid waste. Bay Group Managing Director Ziaur Rahman reported spending nearly Tk30 million on solid-waste handling last year alone, citing unresolved gas shortages and unpaved roads across the estate. Bangladesh shipped $1.76 billion worth of leather goods and footwear across 105 markets last year, yet roughly 65 per cent of leather leaves the country as crust leather rather than finished consumer merchandise.

    Cutting Red Tape for Footwear Makers

    Footwear manufacturers are pushing to diversify beyond raw hides. Non-leather shoes now generate 31 per cent of the sector’s export revenue, but Bangladesh controls less than 0.5 per cent of global trade in the category. The Footwear Leathergoods and Accessories Exporters Association estimates that lifting that share to 5 per cent would add $3.5 billion in export value.

    Across Southeast Asia, rival manufacturing hubs have pulled ahead by streamlining factory setup and clearing environmental hurdles. Vietnam requires four compliance documents for footwear exporters, whereas Bangladeshi manufacturers must navigate 23 separate licences and 190 administrative filings, according to trade group data. That administrative drag slows foreign joint ventures and leaves machinery import permits stalled for months.

    Government negotiators are preparing bilateral talks with Japan to widen tariff concessions on finished leather items before Bangladesh loses its least developed country trade preferences.

  • Bangladesh Power Shortages Force Consumer Goods Makers to Cut Factory Output

    Bangladesh Power Shortages Force Consumer Goods Makers to Cut Factory Output

    Bangladeshi consumer goods, food, and apparel manufacturers are cutting factory output and rescheduling shifts as industrial gas pressure drops by two thirds across major production hubs.

    The supply squeeze, triggered by an offshore liquefied natural gas terminal going offline on July 21, has forced plants onto costly diesel generators and raised operating expenses by up to 15 percent.

    Export Delays and Rising Fuel Costs

    Food and snack producers face immediate export disruptions. Bombay Sweets missed 45.47 percent of its export orders in August because of low gas pressure, leaving 113,000 dollars in paid orders undelivered while container freight rates to the Middle East reached 8,500 to 12,000 dollars.

    Diversified conglomerate PRAN-RFL Group has cut capacity on select processing lines in Narsingdi, Habiganj, Gazipur, and Narayanganj. The company is using liquefied petroleum gas to keep priority machinery running while idling others during pressure drops.

    Household goods supplier ACI Consumer Brands reports that running diesel generators for continuous 24-hour operations has increased production costs by 10 to 15 percent. Foreign buyers and domestic retail channels have resisted absorbing the difference, leaving manufacturers to absorb the margin squeeze.

    For regional retail brands sourcing apparel and packaged goods across South Asia, the bottlenecks demonstrate the fragility of grid-dependent production hubs, where sudden utility shortfalls directly jeopardize delivery timetables.

    Solar Investments to Offset Grid Failures

    Garment exporter Newage Group has altered shift patterns around electricity availability while drawing 25 percent of its plant power from rooftop solar installations. Drugmaker Incepta Pharmaceuticals is now juggling four distinct energy sources, grid electricity, natural gas, LPG, and diesel, to keep medicine lines operational.

    PRAN-RFL currently generates 35 to 38 megawatts of captive renewable power toward its 200-megawatt plant demand, with plans to expand solar generation capacity to 100 megawatts before the end of the fiscal year.

  • Bangladesh Imports from India Hit $10.96 Billion Despite Port Limits

    Bangladesh Imports from India Hit $10.96 Billion Despite Port Limits

    Bangladesh increased its imports from India to $10.96 billion in fiscal 2025-26, defying land border curbs designed to restrict cross-border shipments between the two neighbours.

    The annual import bill rose 13.9 percent from $9.62 billion recorded in the previous fiscal year, according to National Board of Revenue data. Bangladeshi exports to India dipped slightly over the same period, slipping to $1.75 billion from $1.76 billion. The figures leave Dhaka with a bilateral trade deficit exceeding $9.2 billion, with India supplying more than six times what it buys in return.

    Shifting cargo from land to sea

    Bilateral trade friction escalated following political changes in Bangladesh in 2024. Dhaka restricted yarn imports across land borders in March 2025 to shield domestic spinning mills, redirecting all Indian yarn shipments exclusively through Chattogram seaport. New Delhi responded in April 2025 by halting airport transhipment facilities for Bangladeshi garments bound for third countries, later adding land port curbs on Bangladeshi processed food, jute, furniture, and apparel.

    The administrative barriers failed to dent demand for Indian textile inputs. Bangladesh Textile Mills Association president Showkat Aziz Russell said recorded yarn imports from India doubled to approximately 300 billion taka in fiscal 2026, up from 140 billion taka a year earlier. Channeling shipments entirely through seaports brought previously informal or unrecorded overland cargo onto customs registries, inflating formal totals while keeping factory order books supplied.

    Structural imbalance in regional apparel

    Textile mills and garment factories across Dhaka and Chattogram rely heavily on Indian cotton, yarn, and fabric because of shorter freight times and buyer-nominated fabric specifications. While India is Bangladesh’s second-largest overall trading partner after China, Dhaka’s outbound shipments remain heavily concentrated in ready-made garments, which face domestic competition and strict standard compliance inside India.

    Policy analysts and industry bodies note that despite duty-free access granted under the South Asian Free Trade Area framework in 2010, the two countries have yet to build integrated supply chain agreements. Bangladesh Garment Manufacturers and Exporters Association president Mahmud Hasan Khan and Knitwear Manufacturers president Mohammad Hatem have urged both governments to resolve transport frictions through high-level talks.

    Trade associations from both nations continue to push for formal negotiations on a Comprehensive Economic Partnership Agreement to clear land port bottlenecks and establish mutual certification standards.

  • Sammilito Islami Bank Files 10,000 Lawsuits to Recover Bad Debt

    Sammilito Islami Bank Files 10,000 Lawsuits to Recover Bad Debt

    Sammilito Islami Bank PLC has filed nearly 10,000 lawsuits across Bangladesh to recover defaulted loans following the state-backed merger of five troubled Islamic lenders.

    The newly formed entity began operations with a paid-up capital of Tk 35,000 crore, backed by Tk 20,000 crore from state coffers and Tk 15,000 crore from depositors. Legal filings form the primary pillar of the recovery push, supported by alternative dispute resolution mechanisms and a formal exit policy supervised by Bangladesh Bank.

    Forensic Audits and Depositor Access

    Bangladesh Bank confirmed that a comprehensive forensic audit is nearing completion. The investigation targets loan fraud, asset misappropriation, and operational irregularities carried out under the prior ownership and management of the merged institutions. The central bank’s Bank Resolution Department reviewed recovery milestones during a progress assessment this week.

    Individual depositors will gain access to their principal amounts from selected deposit accounts starting September 1. Regulators confirmed that depositors will face no haircut on their accrued profits when accessing those funds.

    The creation of Sammilito Islami Bank combined First Security Islami Bank, EXIM Bank, Social Islami Bank, Global Islami Bank, and Union Bank under the Bank Resolution Ordinance 2025. Consolidating five damaged balance sheets into a single state-owned Shariah lender represents Dhaka’s most aggressive intervention to date in halting systemic liquidity contagion.

    Branch Network and Staff Integration

    Restructuring now extends to physical networks and personnel. Regulators have reconstituted the bank’s board of directors with a focus on independent directors while rationalising roles across roughly 16,000 employees.

    Engineers recently deployed a unified IT interface across all five legacy institutions, enabling retail customers to draw funds from any location. Operational integration is currently underway across 780 branches and 1,500 business units nationwide.

    Bangladesh Bank’s resolution team will maintain regular monitoring sessions to track asset recovery numbers and enforce structural milestones through the final quarter of the year.

  • Bangladesh Closes 20,000 Mobile Accounts in Digital Lending and Crypto Crackdown

    Bangladesh Closes 20,000 Mobile Accounts in Digital Lending and Crypto Crackdown

    Bangladesh financial regulators shut down more than 20,000 mobile financial service accounts last month in an expanding crackdown on predatory lending apps, illegal gambling, and unauthorized cryptocurrency trading.

    The enforcement targets unlicensed operators that use local digital payment rails to harvest consumer data, charge interest rates reaching 800 percent, and move illicit funds across borders.

    Harvesting Data and Escalating Interest

    Fraudulent operators run mobile applications under names such as FinCash, Money, PopKash, CashNow, Drutoloan, Fast Loan, Shathi Loan, and Quickloan. During installation, these apps gain access to contact lists, photographs, and private videos stored on borrowers’ devices. Borrowers who miss payment deadlines or contest inflated rates face harassment and extortion threats to leak their personal media to family and employers.

    Scammers also deploy social media pages to advertise microloans carrying sub-market interest rates as low as 5 percent. Victims pay upfront fees and security deposits amounting to Tk 100,000 before administrators sever all contact. Bangladesh Bank confirmed that none of these digital lending applications hold operational licenses in the country.

    Arief Hossain Khan, executive director and spokesperson for Bangladesh Bank, said the central bank’s Payment Systems Department regularly inspects payment service providers and mobile operators. While operators actively track suspicious transactions, screening every single retail transfer remains a structural operational challenge.

    Unlicensed Crypto and Stricter Gambling Penalties

    Central bank investigators also identified unlicensed virtual asset platforms operating inside Bangladesh. A recent central bank inspection revealed that UAE-based platform Fasset, established in 2019 and licensed by Dubai’s Virtual Assets Regulatory Authority, operates locally without authorization. The platform permits domestic users to buy Tether using local bank accounts and mobile wallets on its peer-to-peer marketplace, allowing capital conversion into Bitcoin and Ethereum.

    To curb digital capital flight, the government enacted the Gambling Prevention Act, replacing the colonial-era Public Gambling Act of 1867. The revised statute criminalizes digital casino betting, fantasy sports, and virtual wagering conducted through mobile applications, servers, and digital wallets. Violators face prison sentences ranging from two to seven years and fines between Tk 2 lakh and Tk 5 crore.

    Across Southeast Asia and South Asia, central banks face an identical problem: rapid adoption of mobile wallets has lowered the barrier for predatory fintech syndicates operating outside formal banking supervision. For licensed digital lenders and consumer brands, the proliferation of rogue apps threatens retail trust in legitimate mobile commerce channels.

    The Bangladesh Financial Intelligence Unit and Dhaka Metropolitan Police are now reviewing transaction records across remaining mobile money accounts, with further provider audits scheduled throughout the quarter.