AGP Executive Report

Air Quality Alert: Dhaka is ranked 5th among the world’s most polluted cities, with AQI at 127—“unhealthy for sensitive groups”—as dry-season pollution from construction, brick kilns, dust and vehicles keeps health risks elevated. Food Fortification Push: TechnoServe’s Millers for Nutrition coalition hosted Bangladesh Country Conclave 2026 in Dhaka, bringing government, industry and development partners to speed up food fortification, strengthen food safety compliance and tackle regulatory hurdles. Eid Logistics: Bangladesh Railway will add extra coaches to nine Western Zone intercity trains for Eid-ul-Azha travel (23 May–27 May before Eid; 29 May–7 June after), plus a special Joydebpur–Parbatipur service. Power Sector Pressure: A new focus on “beyond subsidies” highlights structural flaws in Bangladesh’s power and energy system, including pricing gaps and subsidy burdens. Regional Watch: Pakistan’s Bilawal urged Karachi’s role in “Made in Pakistan” defence production, while Bangladesh–Pakistan ties remain sensitive amid wider border and security narratives.

Power Tariff Showdown: Bangladesh’s power distribution firms have proposed retail tariff changes for FY25-26, with distribution costs ranging from Tk 0.85 to Tk 2.05 per unit, but BERC’s technical committee is pushing a lower weighted net distribution cost of Tk 1.25—setting up fresh consumer backlash as the hearing continues. SOE Fiscal Pressure: A World Bank study says state-owned enterprises drained about Tk 88,200 crore (Tk 882 billion) from the treasury in a year, with energy and power the biggest drag. Capital Market Crackdown: BSEC fined directors and senior officers of three listed companies a total of Tk 2.83 crore for securities violations, including false audited statements and dividend delays. Telecom Push: Govt is considering cutting SIM issuance tax and removing taxes on SIM replacements and IoT/M2M SIMs to expand connectivity. Investment & Industry: Yeijer Shoe Parts will invest $5.03m in Cumilla EPZ to make footwear components, while New Zealand signaled it will support Bangladesh if Dhaka shares a clear sector blueprint.

Securities Crackdown: Bangladesh’s stock regulator (BSEC) fined directors and top officials of Khan Brothers PP Woven Bag Industries and Genex Infosys a total of Tk 1.5 crore for securities-rule breaches, while Aftab Automobiles’ officials face Tk 1.55 crore for dividend non-compliance. Power Tariff Pressure: Stakeholders at a BERC public hearing opposed proposed retail electricity price hikes, arguing costs should be cut and corruption tackled instead of passing the bill to consumers. Energy Crunch Fallout: Bangladesh’s wider power strain is also being felt in the run-up to Eid, with heatwave-linked demand surges and ongoing grid constraints in the region raising the stakes for reliable supply. Eid Transport Worries: Drivers and commuters fear repeat gridlock on Narayanganj highways and the Jamuna Bridge corridor as roadworks and holiday travel collide. Food Security Warning: UN/FAO warned that Strait of Hormuz disruption could trigger a global food-price shock within a year, starting with higher fertilizer and energy costs. Green Industry Moves: Solar and sustainability wins continued—Unilever’s 785 kWp rooftop solar was inaugurated, while LEED Platinum certifications were secured by Union Label & Accessories and Big Boss warehouses.

Jute Push: Bangladesh wants to lift jute exports to $5bn–$7bn by modernising the sector, diversifying products and boosting private participation, with reforms aimed at better technology, research and quality seed—currently about $1bn a year from jute and jute goods. Power Tariff Clash: PDB has proposed a 21% bulk electricity price hike, but consumer groups and businesses are pushing back hard at a BERC hearing, arguing people already suffer from capacity charges and inefficiency. Water Security: PM Tarique Rahman says work will start on both Padma and Teesta barrages to protect agriculture and reduce dry-season water stress. Credit Crunch: Private sector credit growth hit a record low 4.72% in March, reflecting weak investment appetite and ongoing banking stress. Trade/Investment Links: Bangladesh and Morocco are moving toward deeper cooperation and a possible free trade pact, while Bangladesh–US ties were highlighted around energy and strategic cooperation. New Factory Deal: Sunshine Outdoor will invest $15m at BEPZA to make tent and camping products, targeting 1.5m units and nearly 3,000 jobs.

Discipline at the top: PM Tarique Rahman told Ansar-VDP to follow strict chain of command, warning that any lapse can quickly erode public trust. Power tariff showdown: BERC backed a bulk power hike while CAB warned it will push more suffering onto households. Credit crunch signals investment malaise: Private sector credit growth stayed weak, pointing to banks’ risk aversion, high borrowing costs, and uncertainty around energy, inflation, and the exchange rate. Energy stress hits workers: Garment workers blocked roads near Mohakhali over unpaid wages, while heat and power cuts are also worsening conditions in factories. Export push with policy friction: EU wants a more transparent, business-friendly trade setup; US urges Bangladesh to modernise IP rules for more FDI. Industrial expansion: Bepza signed a $15m deal for a tent and camping products factory, targeting 1.5m units and nearly 3,000 jobs. Water politics: Tarique pledged Teesta barrage alongside Padma.

GCC Labour Pullback: Nepal’s migrant outflow to the Gulf fell sharply—down 47% in March-April 2026 vs last year—signalling how the Middle East crisis is hitting jobs and incomes far beyond the region. Energy Pressure in Bangladesh: Bangladesh Bank eased credit rules for big borrowers, but analysts warn it could destabilise a banking system already weighed down by bad loans; meanwhile, steel makers and other industry voices are pushing back against further electricity tariff hikes. Heat & Compliance Risk: A new report flags widening “dangerous wet-bulb” heat in the Gulf and South Asia, raising questions about whether workplace safety rules match real peak risk. Industrial Policy Moves: Bangladesh is also seeing fresh infrastructure and trade momentum—Singapore eyes up to $1bn for Chittagong’s Bay Terminal, while the government pushes energy-sector priorities in the upcoming budget. RMG Sustainability Gap: A study finds garment factories are still far from the 2035 renewable power target (only ~3% renewable today), despite buyer pressure. Eid Digital Push: Mastercard says Eid-ul-Azha spending stays strong, with discounts and vouchers accelerating card-based payments.

Energy Shock: BERC hiked furnace oil again by Tk 18.85/litre to Tk 113.54, effective from midnight Monday, after a prior jump on Apr 12—fuel costs are tightening for power plants and industry. Power Tariff Pressure: Steel millers and BSMA are pushing back hard against any further electricity tariff rise, warning of output cuts and shutdowns as costs pile up. EV Push: BYD launched three NEV models in Bangladesh—Seal 5 (PHEV), Seal 6 (EV), and Sealion 6 AWD (hybrid)—and handed over 60 pre-ordered cars. Jute Ambition: The commerce/textiles/jute minister says jute exports could rise from about $1bn to $5–7bn via seed self-sufficiency, product diversification, and tech partnerships. Port Deal Watch: Singapore is eyeing up to $1bn for the Bay Terminal at Chittagong Port, promising lower demurrage and faster trade. Trade & Labour: NBR will keep customs on limited scale during Eid-ul-Azha (May 25–31, closed on Eid day), while the ILO is urged to help improve safety and welfare for sanitation workers.

Credit Watch: Fitch turned Bangladesh’s sovereign outlook to negative, warning macro vulnerabilities are rising even as the rating stays B+—with Middle East-linked risks to energy imports and remittances front and center. Energy Relief: The World Bank approved a $350m loan to ease LNG fuel pressure and protect power generation as Hormuz disruptions bite. Budget Push: Govt plans to cut bank borrowing in FY27 to spur private credit, while Debapriya warns the next budget must match economic reality or inflation and pressure will deepen. Eid Trade Continuity: NBR ordered customs to run on limited scale from May 25-31 (except Eid day) and asked banks to stay open as needed; BB also set a 7-day bank closure with special arrangements for garment zones and ports. RMG Moves: BGMEA and Mount Elizabeth Hospital launched a “Privilege Card” for apparel exporters; Vision Group and Shahi Exports signed a $30m annual apparel partnership. Finance Access: Agent banking deposits crossed Tk 50,000cr, showing continued rural expansion. Logistics Strain: Dhaka airfreight screening is hit as most RA3 scanners are down, raising queue fears for EU-bound cargo.

World Bank Energy Push: The World Bank has approved a fresh $350m loan to help Bangladesh manage fuel and LNG pressures tied to Middle East disruptions, with support aimed at stabilising Petrobangla’s LNG payments and keeping electricity and industry running. Transport Upgrade Debate: Urban planners say the long-delayed Dhaka–Gazipur BRT should start with dedicated lanes soon—arguing most work is done and scrapping would cost nearly as much. Eid Banking Schedule: Bangladesh Bank set 7 straight days of bank closures for Eid-ul-Azha (May 25–31), with limited branch hours in key garment and trade hubs on May 25–26. Energy Costs Bite: BERC again raised furnace oil to Tk 113.54/litre, while fuel import spending jumped 54% in nine months. Politics & Campus Tension: PM Tarique Rahman urged BNP women MPs to prepare for effective parliamentary roles, while protests at DUET over a new VC appointment turned violent. Business & Trade: NEC approved a Tk 3 lakh crore ADP (FY27), and Bangladesh hosted a semiconductor roadshow in South Korea to plug into global supply chains.

Markets Back in the Red: Dhaka stocks slid again as selling pressure erased a brief recovery; DSEX fell to 5,226 and turnover dropped to Tk 8.7bn. Rice Watch: Naogaon rice prices rose Tk 2–3/kg even during peak Boro harvest, with consumers blaming possible hoarding or manipulation. Leather Push: The government says it will modernise the leather sector and stop hide waste, including training for religious institutions and orphanages ahead of Eid-ul-Azha. SME Capital Market Boost: DSE and Swisscontact signed an MoU to expand SME participation with capacity building and compliance support. Payments Go Interoperable: Pathao Pay joined the Bangla QR and NPSB interoperability network, enabling scan-and-pay across rides and major merchants. Fertiliser Risk: Urea supply fears are growing ahead of Aman as failed tenders may leave a ~1 lakh tonne shortfall unless imports are secured. Energy & Trade Signals: New Zealand wants duty-free access to continue after Bangladesh’s LDC graduation, while Bangladesh prepares another round of tariff rationalisation over 200 lines. Digital Crime Crackdown: CID busted an online gambling ring allegedly making nearly Tk 20mn daily, with funds laundered abroad via crypto and hundi.

Textile Innovation Push: Bangladesh’s RMG and textile ecosystem got a boost with the launch of the Textile Innovation Exchange (TIE) in Dhaka, aiming to make innovation “measurable and repeatable” by linking factories, universities, tech providers and global partners. Campus Unrest: DUET in Gazipur saw violent clashes over the appointment of a new VC, with students demanding the VC be chosen from within DUET; police used tear gas and dozens were injured. Crime Crackdown: The CID busted an online gambling ring allegedly making nearly Tk 20mn daily, with funds moved abroad via hundi and crypto; eight suspects arrested. Aviation Update: Airbus submitted a fresh offer to Biman for 10 aircraft (4 A350-900 and 6 A321neo) as Biman evaluates its next fleet expansion after signing a major Boeing deal. Energy & Costs: Petrobangla’s chairman role shifted to Additional Secretary Md Abdul Mannan, while IGL’s CNG price hike in India signals continued fuel pressure across the region. Food & Health: Youth urged easy-to-understand front-of-pack labeling for packaged foods, as Bangladesh grapples with NCD risks.

US-Bangladesh Security Pivot: The US plans to deploy warships in the Bangladesh Sea under new defence/trade arrangements that give American assets access to Bangladeshi ports and airports for maintenance, refuelling and resupply—an upgrade that’s already raising concern in India. Padma Barrage Shockwave: ECNEC has finally approved the Tk 500bn Padma Barrage after decades, reigniting debate over irrigation gains versus environmental risks and dependence on upstream Ganges flows. Textile Innovation Push: Commerce Minister Khandakar Abdul Muktadir launched the Textile Innovation Exchange, urging sustainability, research and product diversification as RMG export dependence remains a worry. Banking Crisis Spotlight: Export-oriented garment owners demanded a neutral probe into alleged Premier Bank Narayanganj fraud tied to fake back-to-back LCs, warning of job losses. Monetary Policy Consultations: Bangladesh Bank says it’s prioritising financial stability and inflation control while keeping credit flowing to production and employment sectors. Energy Diplomacy: Bangladesh opened talks with Angola for long-term G2G energy cooperation, aiming to diversify imports. Food & Farming Pressure: Flood damage to haor boro crops is already raising rice-supply and farmer-debt concerns. Circular Economy Agenda: EuroCham-backed SACIN kicked off a circular-economy drive, starting with textiles and aiming to turn Bangladesh into a greener supply-chain hub.

Public Health Alert: Bangladesh is showing early signs of another dengue season, with 2,688 cases and 5 deaths recorded as of May 10—while measles deaths have already hit 409 since mid-March, raising fears of two outbreaks straining hospitals. Tax Crackdown: The NBR says it will start a strict tax-evasion monitoring drive with the tobacco sector, using counting tools, QR codes and revenue stamps, and aims to make tax administration “faceless.” Telecom Push: Bangladesh plans to reach top-20 global telecom services in five years, focusing on service quality, affordable access, and nationwide AI/freelancing training centres at upazila level. Inflation Pressure: DCCI’s latest Economic Position Index shows inflation is squeezing service businesses and demand is weakening, even as growth looks “moderate.” Energy & Industry: Gas supply will be suspended in parts of Dhaka for 18 hours for pipeline work; meanwhile, rooftop solar is expanding via a 1 MWp OpEx deal. Regional Watch: Bangladesh’s rupee-linked trade pressures are also in focus as the Indian rupee weakens sharply against BDT.

Energy Diplomacy: Bangladesh is pushing a long-term G2G energy cooperation framework with Angola, inviting an Angolan technical team to Dhaka and urging an early MoU to diversify crude and gas imports. US-Bangladesh Energy Ties: Dhaka also signed a strategic energy cooperation MoU with the US, opening paths for LNG/LPG imports plus joint studies across oil, gas, geothermal and bioenergy. Trade & Exports: Exports hit a 5-month high in April, rising 13.48% (with petroleum products a key driver), but the trade deficit widened as imports climbed. RMG & Labour: The government ordered factories to pay Eid allowances and clear wages by May 21, after tripartite talks focused on the garment sector. Food Prices: Sugar export ban worries industry experts, warning of a price crash and factory stress; meanwhile egg and chicken prices stay high in Dhaka. Fuel Logistics: 14 oil ships arrived at Chattogram by May 15, with five more expected to anchor soon. Water Security: The Farakka Long March Day renewed calls to fix Ganges flow terms ahead of the 1996 treaty’s December expiry.

Energy Deal: Bangladesh and the US have signed a strategic energy cooperation MoU in Washington, with Dhaka pushing for more secure, diversified supply—covering capacity building and studies across oil, gas, geothermal and bioenergy, plus potential LNG/LPG imports. Capital Markets Watch: Speculation is rising over a new BSEC chairman after the BSEC (Amendment) Bill 2026 removed the age cap; Masud Khan (Unilever Consumer Care) is widely seen as a leading candidate. Trade Signals: India’s exports hit a five-month high in April while its trade deficit widened—an external read-through for regional demand and pricing pressures. Apparel Transition: Bangladesh’s RMG debate keeps sharpening around moving from volume to higher value, with EU-facing compliance and Digital Product Passport readiness gaining momentum. Renewables Pipeline: BEZA is set to pilot a 130–140MW grid-tied solar project with battery storage in Sonagazi under PPP, with procurement expected to start in August 2026. Food Safety: Health experts warn ultra-processed foods are driving high salt intake, linked to about 24,000 deaths annually in Bangladesh.

Public University Shake-up: The government appointed new vice-chancellors at 10 public universities in one day, with Kushtia Islamic University getting Prof. Dr. Matinur Rahman. Renewables Push: BEZA will pilot a 140MW (AC) grid-tied solar project with battery storage in Sonagazi under PPP, with an investment-friendly policy expected by June. Trade & Finance Relief: Bangladesh Bank relaxed single-borrower and large-loan exposure limits to boost trade finance, while also easing how non-funded exposures are counted. Capital Markets Demand: Government sukuk fundraising stayed hot—Tk 5,900cr raised in the latest sale, with the overall sukuk programme now oversubscribed 12.3 times. RMG & Labour Stability: Labour ministry ordered factories to clear wages and Eid-ul-Azha allowances by May 21 to prevent unrest. Retail Meets Transit: Metro rail stations are becoming supershop hubs as small-format stores move into station concourses. Health Warning: Experts say processed foods are driving high salt intake, linked to about 24,000 deaths annually. Bangladesh–China Green Textiles: Muktadir called for stronger Bangladesh-China partnership as the Green Textile Expo opened.