AGP Executive Report

Climate Finance for Nepal Floods: Bangladesh has asked the UN Loss and Damage fund board for urgent support after Nepal’s Aug 26 Bhotekoshi flash floods, seeking help to restore services and livelihoods. Energy Crunch Response: Business leaders urged restarting idle coal, furnace-oil and diesel power plants to ease gas pressure on factories, while the government also moved ahead with a 10-year power/energy plan and rooftop solar incentives. Rooftop Solar Push: A new rooftop solar with battery incentive pays 10.50 taka per kWh for surplus power to the grid for three years, aiming to cut fuel imports. Power Sector Finance: Mutual Trust Bank joined Bangladesh Bank’s Tk 41,000cr refinance push for priority sectors, and BRAC Bank secured a $50m IFC facility to expand MSME lending (with focus on women-led and agriculture-linked firms). Fertiliser Supply: The Cabinet Committee approved imports of 70,000 tonnes of fertiliser for the Aman season (DAP and TSP from Morocco) to prevent shortages. Industry Costs & Markets: Steelmakers warned higher electricity tariffs and gas shortages are squeezing margins as rod prices rise but demand stays weak; the DSEX also fell sharply in August amid the energy crisis. Consumer & Trade Signals: LPG prices were cut for September, bottled soybean oil prices rose, and Dhaka Bank signed with Visa to expand card growth.

Rooftop Solar Push: Bangladesh has launched a rooftop solar incentive with battery storage to cut power shortages and fuel imports, paying 10.50 taka per kWh for surplus power fed to the grid for three years (installations eligible until Feb 28, 2027). Energy & Industry Pressure: The move comes as peak shortages hit nearly 4,000MW in August amid gas constraints and fuel supply limits, squeezing industrial output and households. Climate Finance for Nepal: Nepal has asked the UN Loss and Damage Fund for emergency support after the Aug 26 Bhotekoshi flood, framing it as “moral liability” not charity. Agriculture Aid Targeting: FAO says about 10 lakh farming households need emergency agri help (June-Nov), urging Bangladesh to better target river/haor and flash-flood hotspots. Finance Sector Reform Gap: Bangladesh Bank’s loan rescheduling package is being criticised for not fixing default-loan recovery, with key distressed-asset laws still awaiting Cabinet approval. Trade Talks: Bangladesh’s commerce ministry is gathering exporter concerns on India-US market access and tariff uncertainty ahead of ministerial engagement.

Capital Markets: BSEC approved draft rules for direct listing, letting eligible firms (including banks/insurers/telecoms with Tk 500cr+ turnover or assets) enter without an IPO, and also signalled plans for derivatives trading from Jan 2028. Energy & Power: ADB okayed a $175m concessional loan to upgrade Chattogram Hill Tracts power distribution, while the govt announced a rooftop solar incentive with battery storage paying Tk 10.50 per unit (Tk 8 base plus profit/premium) for systems installed by Feb 28, 2027. Exports & RMG: Bangladesh’s merchandise exports rose 13.14% YoY to $4.43b in August, led by a 13.92% RMG rebound; non-RMG gainers included jute, pharma, leather and engineering. Industrial Risk from Gas: Commodity importers and processors warned gas and electricity disruptions are already hurting production and could trigger wider supply-chain problems. Agri & Fisheries: Disease wiped out shrimp at 250 Batiaghata farms, with losses estimated above Tk 15 crore. Trade & Policy: NBR exempted turnover-tax for businesses up to Tk 2cr and set a lower 0.5% band for Tk 2–4cr turnover. Logistics/Infrastructure: APM Terminals broke ground for Laldia container terminal ($550m), boosting port capacity. Border Tech: Home Minister inaugurated Bangladesh’s first Shimanto School for surveillance and drone warfare, with plans to expand digital border monitoring.

ADB Energy Upgrade: The Asian Development Bank approved a $175m concessional loan to modernise power distribution in Bangladesh’s Chattogram Hill Tracts, targeting 26 upazilas with new substations, 5,032km of lines and upgrades to ageing networks to lift grid access to 68% by 2032. Port & Logistics Push: APM Terminals broke ground on the $550m APM Terminals Laldia container terminal in Chattogram, aiming to handle larger vessels and add 800,000 TEU capacity—key for a port that carries most of the country’s import-export trade. Agri Finance: Bangladesh Bank and Islami Bank signed a Tk3,000cr refinancing deal to strengthen the agricultural value chain, covering production, storage, processing and marketing. Digital Business Ease: RJSC plans an Electronic Business Registration System modelled on Singapore to let entrepreneurs register companies online within hours, with instant pre-verification to reduce errors and fraud. RMG/ESG & Skills: Youngone’s 2025 Sustainability Report highlights solar expansion and community health and training plans in Bangladesh, including plans to scale its hospital and set up a textile/fashion college. Food & Retail Digital Skills: foodpanda ran a digital marketing workshop for 160 Cambodian vendors, using AI and TikTok-focused training to help small businesses grow. Trade Supply Chain Innovation: AmeriBangla launched CottonPort, a fully digital raw cotton marketplace linking US farmers to Bangladeshi spinning mills with container-based logistics and traceability. Insurance Oversight: IDRA plans a crackdown on data manipulation in insurance, including forensic audits, risk-based supervision and unique policy/cover IDs to curb fraud. Energy Crisis Context: Bangladesh’s gas and power disruptions remain a major concern for industry continuity, with supply hitting decade-low levels in recent coverage.

Textile Trade & Tariffs: Bangladesh’s garment exporters get a slight edge in the US market after a new 10% duty, with Bangladesh’s effective tariff at 25.6% versus 35.6% for China and 28.1% for Vietnam—though industry says the gap may be limited by production and shipment pressures. LDC Graduation Prep: ICC Bangladesh ran a Chattogram workshop on “International Trade Financing following LDC Graduation,” urging banks and businesses to plan for post-graduation banking and trade challenges. FX Market Modernisation: Bangladesh Bank is rolling out an electronic FX Market Module to automate forex intervention auctions, interbank dealing, and reference-rate data. Banking Leadership: Standard Chartered Bangladesh appointed Enamul Huque as CEO effective Sept 1, after a three-month CEO gap. Agri Support & Climate Resilience: Prime Bank signed an MoU with BAU to fund climate-resilient crops, fisheries and livestock in haor areas; FAO also warns about emergency agri aid needs for ~50 lakh people. Business Pulse: PMI rose to 57.8 in July on a manufacturing rebound. Apparel Compliance Pressure: Clean Clothes Campaign urged brands to disclose US tariff refunds and ensure compensation reaches garment workers and suppliers. Footwear Investment Interest: Hong Kong Shoe Association explored direct investment and joint ventures with Bangladesh Shoe City, with Bida support on export logistics. Energy & Costs: Fuel oil prices stayed unchanged for September; BB also eased repayment for large loan defaulters via longer rescheduling tenure. Industry Events: Bangladesh will showcase textile and apparel at Texworld Paris 2026 with 17 participating firms.

Energy Crunch: Bangladesh’s gas supply in August slid to a decade-low 2,235 mmcfd, dragging power generation and pushing factories toward near standstill, with the power deficit peaking around 3,000MW. RMG Automation: Export-oriented garment factories are adopting AI/IoT monitoring on sewing lines, reporting productivity gains of up to 25% through real-time tracking of machine performance and defects. Trade & Finance: Bangladesh Bank cut the rate on its Tk 3,000cr agro-based economic hub refinancing fund to 3% for banks, capping customer rates at 7%, while forward dollar booking helped importers gain up to Tk1 per dollar after the rate rebound. Ports & Industry Zones: Construction is set to begin on the $550m Laldia container terminal, aiming to lift Chattogram’s logistics role, and Ishwardi EPZ reported export growth to $289.32m in FY25-26. Diplomacy for Industry: China invited Bangladesh President Mirza Fakhrul Islam Alamgir to visit China, with talks flagging CEIZ investment and Mongla port/EPZ cooperation. Humanitarian/Regional: The US and Sri Lanka launched “Atlas Angel II” disaster-response drills, with Bangladesh observers participating.

Frozen Food Exports Boost: Bangladesh Bank set up a Tk 2,000 crore revolving pre-financing fund for frozen shrimp and fish exporters, offering up to 7% financing to ease cash-flow and cold-chain costs. Agriculture Credit Cut: BB also revised its Tk 10,000 crore farm refinance, cutting the farmer/customer cap to 7% and the bank refinance rate to 3%, while keeping loan tenures unchanged. Northern Agri Economic Centre: BB revised the Tk 3,000 crore scheme for a northern agriculture-based economic centre, setting 3% at bank level and up to 7% for customers, with tighter loan tenures. Metro Rail Cost Review: An inter-ministerial committee will review revised budgets for Dhaka Metro Line-1 and Line-5 Northern, with early cuts of about Tk4,800 crore expected. Port & Logistics Push: APM Terminals began construction of the $550m Laldia Container Terminal in Chattogram, targeting 1m TEUs a year and boosting the port’s role as a regional logistics hub. Energy Pressure on Industry: Business leaders warned that Bangladesh must stabilise power and gas supply for existing industries before courting new investors, calling for predictable supply and advance load-shedding schedules. Food Safety Crackdown: BFSA fined 16 outlets Tk 20.50 lakh in a week-long drive, including cases over stale food, expired items, and hygiene lapses. Market Watch: DSE opened the week bearish as selling pressure hit major sectors, while BSEC ordered probes into Sharp Industries and Aamra Technologies after abnormal price moves. Skills & Jobs: Youth-focused push for technical education and self-employment continued, alongside KUET’s Sept 1 University Day plans and a ZRF science fair call for future innovators. Trade & Diplomacy: Imports from India rose to $10.96bn in FY26 despite restrictions, while Bangladesh-China “two-plus-two” talks are expected soon.

Bangladesh–Malaysia Business Ties: Health and Family Welfare Minister Sakhawat Hossain said the Bangladesh–Malaysia partnership is built on mutual trust, urging Malaysia to increase imports from Bangladesh as business leaders met in Dhaka. Dhaka Transport Modernisation: PM Tarique Rahman ordered Electronic Toll Collection (ETC) on expressways and flyovers within four months, plus an app and congestion fixes; he also pushed relocation plans for Karwan Bazar kitchen market to Gabtoli and Fulbaria bus terminal to Keraniganj. Port & Logistics Expansion: The foundation stone for the Laldia Container Terminal at Chattogram Port is set for today, aimed at boosting container handling and cutting cargo time; Chattogram also retained 68th place among the world’s busiest ports. Shipbuilding Investment Interest: Maersk Line discussed direct investment in Bangladesh’s shipbuilding (and ship recycling) with Bangladesh’s commerce minister, with potential jobs and skills transfer. Industrial Policy Update: The government’s new CIP (Industry) policy tightens eligibility with production, investment, profitability, tax compliance and job creation scoring, limiting awards to 55 per year. Energy/Industry Pressure: Reports highlight gas and power shortages hitting garment incomes and production, while investors still cite missing confidence for a manufacturing revival. Regional Disruption Watch: Nepal’s flash floods continue to disrupt transport and rescue operations, with downstream concerns for the region’s infrastructure and supply chains.

Transport & Market Decongestion: PM Tarique Rahman ordered ETC rollout at toll plazas on expressways/flyovers within four months and directed an app to support it, while also pushing traffic fixes around Jatrabari–Gulistan Flyover and parking near the Secretariat; he further ordered the Karwan Bazar kitchen market relocation to Gabtoli and the Fulbaria terminal shift to Keraniganj, with a temporary terminal planned within four months. Industrial Policy & Jobs: The government will run 22 foundations under a five-cluster approach focused on jobs, renewable energy and social protection, including a nationwide “One Village, One Product” drive. CIP Rules Tighten: A new Commercially Important Person (Industry) policy (2026) replaces the 2008 version with a scoring-based, production- and tax-compliance-heavy system and caps CIP numbers at 55 per year. Energy Pressure on Industry: A gas and power crunch is cutting garment workers’ incomes in Gazipur, with reduced hours and overtime. Trade & Ports: Chattogram retained 68th place among the world’s busiest container ports, handling 34.09 lakh TEUs in 2025 (+4.1%). Finance & Consumer Credit: Bank Asia signed an MoU with DHS Motors to offer auto loans to vehicle buyers. Maritime Investment: Maersk Line is exploring direct investment in Bangladesh’s shipbuilding and ship recycling sectors. Agritech & Farming: An HSTU student built an AI crop recommendation system using soil and weather data, tested with 97%+ accuracy. Textile Cost Shock: Apparel exporters renewed calls to regulate cotton yarn exports as yarn prices reportedly jumped ~60%, squeezing competitiveness. Heritage Risk: Activists allege a 500-year-old Sonargaon structure (Boro Sardar Bari) was damaged after commercial shooting rental, demanding rapid repair. Insurance Cleanup: IDRA will start settling long-overdue claims from next week by liquidating assets of troubled insurers. Regional Cooperation: SAARC Agriculture Centre held a coordination meeting to map joint programs for 2027, targeting resilient agriculture and food systems.

Himalayan Disaster: Nepal and China’s rescue teams resumed after glacier-triggered flash floods killed 579 in Nepal and 7 in Tibet, with Nepal’s missing rising to 1,924; China’s Gyirong border complex was reached for the first time and rescuers reported “nothing but ruins,” while authorities warn of renewed flood risk from upstream lakes. Energy & Industry: QatarEnergy extended LNG force majeure for Bangladesh beyond September as Strait of Hormuz disruptions keep shipping constrained, adding pressure to an already tight gas supply that has been driving power load-shedding and industrial stress. Textile Supply Chain: Bangladesh launched its first digital raw cotton market, CottonPort, linking US-grown cotton directly to local spinning mills to cut intermediaries and support exports to the US. Agrochemical Trade: The new Import Policy Order removed “single country, single source” limits for agrochemical raw materials, expected to unlock cheaper sourcing and attract investment in a Tk 15,000cr pesticide market. Power Infrastructure: A fire at a Brahmanbaria electrical substation damaged an auxiliary transformer and disrupted supply to several areas; repairs are underway. Urban Transport: Dhaka’s Kamrangirchar Iron Bridge reopened after renovation but will now be pedestrian-only to improve safety. Skills & Training: Bangladesh and China signed an MoU to set up a vocational training centre, including bilingual materials and industry-linked practical training. Policy Focus: Bangladesh’s LDC graduation must trigger structural reforms to sustain growth and attract FDI as trade privileges fade.

Stablecoin Watch: Asian regulators are urging banks to start preparing for stablecoin rules as frameworks roll out across Hong Kong, Singapore, Japan and South Korea. Power & Environment: Coastal Bangladesh’s coal plant is accused of operating without regular air-quality testing, with claims of declining air and water quality and a shorter-than-approved chimney. Skills & Education: Bangladesh and China signed an MoU to set up a China-Bangladesh Vocational Education, Training and Research Center, plus teacher training, research and language-skill centres. Insurance Oversight: IDRA ordered insurers to remove hidden/duplicate servers and consolidate data within six weeks, warning of legal action. Fertiliser Supply: BADC will import 480,000 tonnes of potash from Canada (with an option for 120,000 more) to support farm inputs. Garment/Industry Finance: Tk 41,000 crore from 17 banks is set to revive closed factories, while 660 textile mills are reported suffering from gas shortages. Urban Water Crisis: A study says Dhaka’s surface water has fallen 83% over 250 years, worsening flooding and waterlogging.

Energy Crisis & Power Supply: Bangladesh’s opposition leaders hit the government over the worsening gas and electricity crunch, factory closures and job losses, as load-shedding and fuel-price pressure continue. LNG & Grid Stress: Technical faults at Bangladesh’s FSRU and weather-linked LNG loading disruptions have deepened the supply gap, with stakeholders pushing for more LNG infrastructure and alternatives to imported fuel. Renewables Push: The government has launched a nationwide drive to expand rooftop solar by building a local service-provider network for technical support, financing and O&M, while green building efforts are widening beyond RMG. Regional Climate Risk: Nepal’s flash floods tied to glacier collapse are disrupting hydropower exports to India and also affecting plants supplying power to Bangladesh, raising concerns for downstream energy reliability. Industry & Trade: Bangladesh’s green building push highlights growing LEED-certified factory numbers, while policy and skills debates continue around using engineers and future-ready training. Labour Tragedy: Bodies of seven Naogaon workers killed in a Saudi sofa factory fire have arrived in Bangladesh for repatriation and family support. Nuclear Cooperation: Bangladesh’s science minister met Rosatom on Rooppur progress and also discussed SMR-focused nuclear cooperation with the US.

Investment & Industry Revival: Invest Bangladesh will start open bidding in October for the first batch of 5–7 idle state assets, with 44 factories/industrial holdings lined up across sugar, textile, chemical, jute and steel units. Export Diversification: Ecolet will invest $15.91m at BEPZA EZ-1 in Mirsharai to make 6m LED bulbs/lamp units yearly for US, UK, EU and Middle East markets, creating 306 jobs. Energy Transition: Government plans to expand rooftop solar via a district-based enlistment of service providers, while Germany signed MoUs worth EUR 12m for mangrove/marine protection and energy efficiency projects. Finance for Factories: Bangladesh Bank says agreements are finalised to raise Tk 41,000cr from 17 commercial banks under the Tk 60,000cr stimulus to reopen closed industrial units. Trade & China Ties: FBCCI urged deeper China investment to cut a $17.5bn trade gap, focusing on SEZs in Chattogram and Khulna, and also pushed simpler visa steps for businesspeople. RMG Worker Support: BGMEA held an orientation on UWPP and LIMS for garment factories, backed by EU TA-SPBS. Capital Market: Stocks rebounded on DSE after a week-long slide, though turnover stayed weak.

Energy & Infrastructure Response: Nepal Electricity Authority restored power to flood-hit Nuwakot areas after the BhoteKoshi River disaster, using alternative transmission lines from Sindhupalchok and other reroutes while teams work to bring key 66kV/11kV lines back online. Hydropower Rescue Ops: A Nepal Army helicopter landed at Upper Trishuli-3A to rescue stranded employees, with a high-level NEA team assessing damage and coordinating restoration. Trade & Customs: Bangladesh Customs intelligence says it stopped an attempt to import four luxury cars by declaring them as used parts and shipping them in large sections; the estimated value runs into crores. Manufacturing Update: RAK Ceramics (Bangladesh) resumed tiles production on one line after scheduled maintenance, while another line remains shut. Worker Safety: Bodies of nine Bangladeshi victims from a Riyadh sofa factory fire are set to arrive in Dhaka, with remaining identifications pending. Jobs & Skills: A Khulna job fair handed out 285 appointment letters on the spot, linking youth with employers. Agribusiness: Successful ostrich breeding in Dinajpur has produced chicks via incubators, drawing visitors and setting a local example. Industry & Investment Signals: BRAC University recognized 17 top researchers for Q1 journal publications, including work tied to supply chains and the RMG sector.

Food Safety Crackdown: BSTI ordered the withdrawal of 10 substandard products, including spices from Bombay Sweets & Co Ltd and Baghabari-brand ghee, after lab tests found quality failures (e.g., ghee with no milk fat). Tax & Industry Compliance: NBR sealed Beauty Tobacco Company in Manikganj after detecting counterfeit cigarette banderoles on 90,000 sticks and seizing 13,000 unused fake stamps; a case was filed and production suspended. Renewables Push: The government added about 200 MW of solar power to the national grid via net metering in the first six months, as part of an expanded renewable and grid-stability plan. Agri Livelihoods: The agriculture minister said fertiliser stocks are ample and warned against any “artificial crisis,” while also highlighting the Farmer Card initiative to track land, crops and input needs. Livestock Value Chain: The fisheries and livestock minister said local processing and packaging centres will be built to secure fair livestock prices for farmers. Bangladesh-China Skills: PM adviser Mahdi Amin and Education Minister Milon urged education—especially technical/vocational and Chinese-language learning—to deepen Bangladesh-China people-to-people ties. Trade & Logistics Spotlight: Dinajpur’s Dashmail banana hub handles about Tk 1 crore (US$81,280) daily, with hundreds of trucks moving produce to Dhaka.

Ship Recycling Safety: Bangladesh’s shipbreaking push faces renewed scrutiny after a deadly LNG-tanker yard accident, with experts warning that certification on paper isn’t matching real enforcement and on-ground compliance. Energy Security & LNG Finance: The World Bank is set to double its LNG loan guarantee by an extra US$350m to help Petrobangla secure LNG imports amid declining domestic gas and volatile global prices. RMG & Trade Policy: Bangladesh Bank reports a strong rebound in net RMG exports in Apr-Jun FY26, while a new import policy order expands FoC facilities and sets rules for free trade zones and bonded warehouses—welcomed by some, but raising concerns among local textile producers. Digital & Telecom: Banglalink installed a 50kW rooftop solar array at its Cumilla data center, and 5G-ready handset share rose to 8.29% as users upgrade. AI Skills Push: Bangladesh and KOICA signed a $13m grant to build an AI-Hub at STP-2 (2026-2029) to train AI experts. Tax Relief for Small Firms: NBR plans to exempt firms with turnover up to Tk2cr from minimum turnover tax, easing pressure on smaller businesses. Agriculture & Fisheries: Cabinet approved 140,000 tons of phosphate fertilizer imports from OCP Nutricrops, while KAU stressed science-based fisheries management during National Fisheries Fortnight.