AGP Executive Report

Energy Crunch Hits Industry: Bangladesh’s gas crisis is forcing factories to cut output or shut down, with Narsingdi’s gas-dependent textile units reporting fabric damage and cancelled orders as pressure drops to near zero. Food & Consumer Safety: Chattogram’s Pure Food Court fined four establishments Tk 40 lakh for serious safety violations, including use of substandard ghee and expired products. Investment Promotion: Invest Bangladesh has started operations as the new apex investment promotion agency, merging BIDA, BEZA and PPPA under a single front office for investor support. Maritime & Transport: Govt launched Watercraft Census 2026 to build a vessel database and reduce harassment, while Bangladesh also faces wider regional shipping disruption after a Panama-flagged bulk carrier sank off Odisha with 22 crew missing (including a Bangladeshi). Agri Finance: United Commercial Bank signed with Bangladesh Bank to expand refinance-backed agri lending for farmers and rural entrepreneurs. EV Manufacturing Push: Runner plans to manufacture BYD electric cars in Bangladesh, backed by board approval for capital raising and factory expansion. Textile Trade Calendar: The 25th Bangladesh textile exhibition series will run Sept 2-5 in Dhaka, targeting machinery, yarn, fabrics and dye-chem supplies. Capital Markets Mood: DSEX fell 63 points as energy worries and earnings uncertainty rattled investors.

Flood Watch: Khowai River in Habiganj is running 130cm above danger level at Balla point, inundating low-lying areas as water levels rise at 75 of 127 monitoring stations. Investment Push: Bangladesh launched Invest Bangladesh, merging BIDA, BEZA and PPPA into one apex agency under the PM’s Office with a single digital access point and clearer licence timelines. Gas Crisis Hits Industry: Ongoing gas shortages are disrupting apparel production and delaying shipments, with factories forced to shut down and some exporters shifting to costly air freight. Fertiliser Shutdown Fallout: Ashuganj fertiliser plant remains idle after gas shortages, leaving workers jobless and threatening farm input supply. Energy Trade Costs: Bangladesh may pay a new electricity import Settlement Nodal Agency charge of 0.005 Indian rupees per unit, with potential impact on long-term imports. Textile Environment Pressure: In Narsingdi, many textile units are burning wood or firewood due to gas shortages and expensive textile waste, raising environmental concerns. Port Safety & Labour: Shipbreaking safety remains weak despite certifications, after deaths linked to toxic gas exposure at a Sitakunda yard. Digital Payments: Bangladesh Bank is easing rules for outbound foreign-currency digital accounts and has contacted PayPal about possible entry. Jewellery Export Drive: BAJUS targets $7bn jewellery exports by 2030-31, calling for policy support and easier gold imports. Maritime Incident: A Panama-flagged MV Ocean Winner sank in the Bay of Bengal; 22 crew members including a Bangladeshi sailor remain missing as searches continue. Weather & Farming Risk: El Niño is expected to intensify, bringing erratic rainfall and heat that could disrupt Bangladesh agriculture and food security. Diplomacy: India’s Jaishankar says India-Bangladesh ties need “mutual interests” and “common ground,” amid uncertainty around Tarique Rahman’s possible visit.

Tax & Data Centres: Bangladesh’s NBR cut total tax incidence on specified server imports from about 24% to 9.5% to speed up cloud and data-centre growth, with customs and VAT exemptions under HS 8471.50.90. Banking & Mobility: Bank Asia signed an MoU with DHS Autos to offer auto-loan facilities and joint marketing, aiming to make vehicle financing easier for customers. Industrial Expansion: Meghna Group of Industries (MGI) entered the sanitaryware market with about Tk 300 crore investment, targeting a fast-growing construction-linked demand. Energy Pressure on Industry: DCCI and BKMEA warned the energy crisis is hitting far beyond power-intensive sectors, disrupting production, raising costs, and delaying projects; BKMEA urged gas supply restrictions for non-public vehicles and relief on bills. Private Investment Push: Economists and business leaders at a DCCI seminar called for coordinated fiscal/monetary reforms, lower interest rates, and predictable policy to revive private investment. Construction & Connectivity: PM approved the Hijla–Mehendiganj–Bhola highway plan to cut travel time and transport costs by linking Bhola to the mainland road network. Textile Trade & Expo: CEMS-Global USA and CEMS Bangladesh launched the 25th textile exhibition series in Dhaka (Sept 2-5), covering machinery, yarn/fabric and textile chemicals. Food & Pharma Policy: Experts urged a medicine pricing rethink after the Essential Medicines List 2026 and pricing method were cancelled, reverting to the 1994 list and system. Markets Watch: Gold rose to a 3-month high amid dollar weakness and US Treasury buyback support.

Energy & Industry: Bangladesh’s gas crunch is still biting factories, with reports pointing to production disruptions and the need for faster energy solutions. Textile & Manufacturing Skills: Higher education leaders in Bangladesh are pushing for university-industry collaboration and curricula aligned with jobs and technology, aiming to support a faster path to a trillion-dollar economy. Healthcare Infrastructure: Work has started on a long-awaited PET-CT lab in Chattogram, with a target launch in about two and a half months—expected to cut patient travel costs and expand cancer diagnostic capacity. Trade & Agriculture Exports: Chinese traders showed strong interest in Bangladeshi fruits and farm products at the Mekong-Lancang festival in Kunming, opening fresh export and business links. Renewables & Power Efficiency: Savar’s wind-turbine plan will power highway lights, while garment-sector initiatives highlight rooftop solar and energy-saving efforts to reduce factory power costs. Construction & Environment: A JICA-funded road project in Moheshkhali’s reserved forest reportedly continued despite a High Court injunction, keeping legal and environmental concerns in focus. Water & Food Security: Conservation efforts are linked to hilsa returning to the upper Ganga, underscoring how river health and fisheries management affect food supply.

Bangladesh–India ties: Indian President Droupadi Murmu congratulated Bangladesh’s newly sworn-in President Mirza Fakhrul Islam Alamgir, calling for stronger cooperation across energy, technology, connectivity, youth, health and education, as Dhaka and New Delhi also weigh the uncertain proposed visit of Prime Minister Tarique Rahman. New president: Alamgir, BNP’s veteran leader, took oath as Bangladesh’s 23rd President in a ceremony at Bangabhaban, after winning a first contested presidential election since 1991. Industry & energy: BGMEA and Bidec signed an MoU to help garment factories convert conventional capacitor ceiling fans to BLDC fans amid gas supply problems; in Chuadanga, an agrivoltaics pilot combining solar power and irrigation was inaugurated. Textile innovation: TIE and ITET launched a TIE–ITET Innovation & Research Cell to boost applied research and competitiveness for Bangladesh’s textile sector. Higher education for jobs: Finance adviser Amir Khosru urged linking higher education to employment and entrepreneurship, while the government plans innovation hubs and startup ecosystems in universities. Business update: Carew & Company (Bangladesh) is projected to post a record Tk 165.24 crore net profit despite ongoing sugar unit losses.

IMF Talks: Bangladesh’s IMF loan remains stalled as the lender demands financial-sector reforms, subsidy cuts, a market-based FX rate, NBR capacity upgrades, and climate resilience measures. Energy & Industry: Bangladesh’s solar push faces grid and financing limits, but a new 49.6-kW agrivoltaics pilot in Chuadanga is testing how to grow crops under solar panels. Agri Finance: Bangladesh Bank launched a Tk 10,000-crore refinance scheme for agriculture and rural credit at up to 8% interest, with collateral-light crop loans for small farmers. Food Safety: Farmers will get pesticide safety training to reduce health risks and support safer food production. Investment & Industry Mapping: BIDA, ADB and SANEM started a nationwide industrial survey to identify investment potential and business bottlenecks. Automation Expo: A 3-day industrial automation expo opened in Bogura to promote tech-driven manufacturing and certification support. Aviation Cooperation: Bangladesh and AirAsia discussed expanding low-cost airline operations, airport management, digital services, maintenance and technology transfer. Port Safety: Chattogram Port Authority removed illegal fishing nets from navigation channels to protect commercial shipping. Venture Capital: BSIC appointed Wise Rahim as its first MD/CEO to scale startup funding via its Ankur fund.

RMG Energy Shock: Dhaka Chamber of Commerce and Industry estimates Bangladesh’s energy crisis is costing industry up to Tk 2,387 crore daily, with gas and power shortages hitting factory output, exports, investment and jobs. Rooftop Solar Push: CPD says garment factories could generate up to 1,768MWp from rooftop solar, mapping 9.7 million sq m of space to cut reliance on unstable supply. Gas Crunch in Textiles: Reports highlight production halts at Narsingdi textile factories due to gas shortage, underlining how fuel disruptions are directly derailing manufacturing. EPR for Plastic Waste: New Extended Producer Responsibility (EPR) Guidelines 2026 shift plastic waste responsibility to producers, importers and brand owners, with non-compliance risking environmental registration and shutdown pressure. Tea Industry Disrupted: Sylhet tea gardens face peak-season damage from power cuts, forcing costly generators and delaying processing. Industrial Leadership Moves: BSIC appoints Waiz Rahim as MD and CEO to scale startup investment; Waiz’s background spans venture funding and industrial systems. Textile Import Controls: Textile millers urge withdrawal of bond facilities for importing 10–30 count yarn to protect domestic spinning and curb misdeclared imports. Aviation & Logistics: Bangladesh explores AirAsia cooperation for ground handling and airport management, while Bangladesh also looks at aviation tech and training capacity building. Ship Recycling Safety: Sitakunda’s Ferdous Steel toxic gas incident death toll rises to 10, renewing calls for stricter enforcement in ship recycling.

Maritime Data Build: Bangladesh’s first nationwide vessel census kicks off Aug 20-29, with a Khulna procession marking the drive to create a comprehensive engine-powered vessel database. Food & Export Value-Add: BAU researchers say modern canning tech can turn kuchia (eel fish) into safe, long-shelf-life canned products, with samples tested against international standards—aimed at new export prospects. City Service Accountability: DSCC administrator warns of surprise inspections and immediate action over negligence in waste, mosquito control, street lighting and revenue collection. Local Development Delivery: Chattogram-5 reports 329 of 450 development projects completed in the first 180 days, spanning roads, drainage, water supply, power, and community facilities. Energy Crunch Update: Excelerate’s Moheshkhali LNG supply is suspended due to deliverable cargo shortage, cutting grid gas by 105 mmcfd; Summit’s terminal continues. Circular Economy Finance: EKI Energy Services gets Verra registration for Bangladesh’s first plastic waste reduction project, targeting plastic credits and circular material flows. Trade Facilitation: Bangladesh asks India for faster business visas and fewer non-tariff barriers to boost goods movement and investment. Textile Leadership: Ocean Textile Effect promotes Engr. Zahedul Huque to Global Head, expanding Bangladesh-linked global operations. Halal Market Push: Malaysia’s envoy highlights halal’s growth to $3.6tn by 2029 and urges Bangladesh-Malaysia cooperation in certification, standards and supply chains. Governance & Infrastructure Funding: ECNEC approves 10 projects worth Tk 9,333.58 crore, including Dhaka Medical College hostel buildings, smart bridge maintenance, coastal protection and solar power.

ECNEC Approvals: The National Economic Council greenlit 10 projects worth Tk 9,333.58 crore, including Tk 4,963.67 crore to rehabilitate and strengthen rural roads across all 64 districts and upazilas, with modern tech like rubber-bitumen to be tested first. Energy & LNG: Policy approvals cleared 14 LNG cargoes and fertiliser imports, while officials say Bangladesh may need 1.5–2 years to fix the energy crisis, citing infrastructure and LNG receiving/conversion limits. Telecom Quality Push: BTRC urged operators to improve service quality after complaints on call rates, network coverage, data expiry and SMS delays; the regulator also called for quality internet and modernised rules. Agrivoltaics Pilot: Bangladesh launched its first grid-connected agrivoltaics pilot in Chuadanga, pairing solar generation with crops like green chillies and rice to balance clean energy and farmland use. Agri Finance: Citizens Bank signed with Bangladesh Bank to access concessional refinancing for agriculture and rural enterprises. Pharma Funding: IFC committed $30.7m to Popular Pharmaceuticals to finance API imports and keep essential medicine production running. Food Safety Crackdowns: BFSA fined a margarine factory Tk 4 lakh in Chattogram and an ice cream factory Tk 1 lakh in Bogura for banned or harmful practices. Banking Reform Plan: Govt set a five-year roadmap to clean up the banking sector, focusing on bad-loan recovery, tighter supervision and depositor confidence.

Bangladesh-India Trade Push: Indian High Commissioner Dinesh Trivedi said PM Narendra Modi wants Bangladesh PM Tarique Rahman’s India visit to be “memorable,” while Bangladesh’s state minister Shama Obaed Islam called for an equally beneficial economic partnership with faster business visas and more predictable ease of doing business. Logistics & Investment: CII proposed two B2B task forces—one on digital transformation and another on infrastructure investment/financing—aimed at easing cargo movement and delays at land ports like Benapole. Textile Under Pressure: Bangladesh’s textile sector is taking a hit from persistent gas and electricity shortages, forcing factories to cut output and switch to costlier fuels. Skills for Industry: NITER and Zhejiang Sci-Tech University signed an MoU to strengthen textile education and research, while NSDA is developing a competency-based Arabic curriculum to support overseas employment. Energy & Power Investment: China remains a major foreign investor in Bangladesh’s power sector, with renewable energy investment rising. Shipbreaking Safety: Chattogram authorities filed a case after nine workers died in a toxic gas incident at Ferdous Steel, highlighting ongoing workplace safety concerns. Urban Planning: BEPZA’s Mirsarai EZ project reportedly saved Tk 134.25cr and is moving toward investment and export returns.

Bangladesh-India Trade Reset: Commerce Minister Khandakar Abdul Muktadir met India’s CII and is hopeful of easing trade frictions soon; CII proposed two B2B taskforces—one on infrastructure/PPPs and another on emerging tech—to tackle non-tariff barriers and logistics frictions. Energy Crunch & Fuel Talks: India’s MEA says it is examining Bangladesh’s request for extra diesel while balancing its own refining capacity; separately, Bangladesh and Qatar agreed to set up energy and finance working groups amid Strait of Hormuz-linked supply worries. Teesta Water Dialogue: India reiterated Teesta talks will continue via the Joint Rivers Commission and structured mechanisms, as Bangladesh urged the dispute not to strain ties. RMG & Industrial Policy: BKMEA says the first six months brought helpful steps for exporters, but gas and power shortages remain the biggest drag; HSBC Bangladesh launched its 2026 Export Excellence Awards to spotlight sustainable exporters. Silk Modernisation: Govt plans to transform the silk value chain with China-backed research and technology cooperation, aiming for higher productivity and competitiveness. Rural Finance Push: Bangladesh Bank and UCB signed a deal to expand refinance-backed rural lending for farmers and rural enterprises. Health Supply Upgrade: CMSD will get a new pharma-grade warehouse via UNOPS and Global Fund partnership. Fisheries Export Drive: Fisheries officials say domestic demand is being met and focus is shifting to boosting fish exports. AI in Telecom: Telecom operators are using AI to cut tower energy use and operating costs. Shipbreaking Safety Shock: Multiple reports highlight deadly toxic gas leaks at shipbreaking yards, renewing calls for stronger oversight.

Teesta Diplomacy: Bangladesh Water Resources Minister Shahiduddin Chowdhury Anee urged India not to let Teesta ties deteriorate, saying Dhaka’s interests must be considered while pushing a China-backed restoration plan. Energy Crunch & Industry: Gas and power shortages are still choking production; Sharp Industries says it is running at about 60% capacity despite long outages, while the government orders earlier shop shutdowns by 8pm to save electricity. LNG Procurement: Cabinet cleared purchase of two LNG cargoes from BP Singapore for about Tk 1,850cr to keep gas supply steady. Fiscal Shift: Cabinet also approved moving the fiscal year from July–June to April–March from FY2028-29. Economic Zones on Idle Land: BEZA plans new economic zones on land of three closed state mills in Demra and Kushtia, aiming to revive industrial activity and jobs. RMG Sustainability Presence: Urmi Group’s Shamarukh Fakhruddin represented Bangladesh’s RMG sector at a UN sustainability forum in Colombo. Food & Trade Measures: Cabinet approved duty waivers for imported green chilli and tomato to stabilize prices, and NBR directed customs to ensure solar equipment duty-tax benefits. Fisheries Focus: National Fisheries Fortnight-2026 kicked off in Khulna, with calls for modern, sustainable practices and safer, chemical-free fish production. Border Security: BGB seized smuggled Indian goods and drugs worth over Tk 1.77cr in multiple drives. Shipbreaking Safety Alarm: Bangladesh shipbreaking again faced scrutiny after a toxic gas leak killed workers at Ferdous Steel, raising concerns about certification vs on-ground safety.

UAE Investment Push: UAE-based Bangladeshis plan to invest about Tk 1,000 crore in Bangladesh, focusing on digital/AI Islamic banking, renewable energy, food processing, tourism, education and healthcare, with talks scheduled with BIDA for faster approvals and one-stop support. Fiscal Overhaul: Govt approved shifting the fiscal year from July–June to April–March to reduce monsoon-linked delays and improve project quality, with a transitional nine-month FY2027-28. Agri Credit Boost: Bangladesh Bank raised agricultural and rural credit targets for FY27 by 53.85% to Tk 60,000 crore, easing rules for loans including fish fingerlings, poultry/duck chicks and organic fertiliser producers. Textile & Jute Modernisation: Commerce minister called for integrated efforts to modernise textile and jute education, research and tech links, while Bangladesh and the Netherlands signed an MoU to advance circular economy in RMG and textile to cut waste and raise export competitiveness. Trade Logistics: Commerce minister urged faster airport cargo clearance and warehouse expansion, proposing inter-ministerial coordination to tackle space and theft concerns at cargo villages. Climate & Water Safety: PM chaired a move to use vetiver grass to protect roads and embankments from erosion, and Teesta management planning was discussed for sustainable, long-term control. Port & Weather Strain: Chattogram was hit again by heavy rain and tidal surges, worsening waterlogging and transport disruption. Food & Fisheries: Fisheries minister stressed safe, quality fish production for exports and food safety, while Bangladesh’s fish imports continue despite high local output.

Food Security & Nutrition: Bangladesh is urged to make food security nutrition-sensitive after SOFI 2026 flagged 26.2% of people (about 4.54 crore) as moderately or severely food insecure in 2023-25, with healthy food still unaffordable for many. Jute & Rural Trade: Monsoon has revived Faridpur’s century-old boat market in Bhanga as waterlogging boosts demand for small boats used for jute retting and washing. Water & Environment: A study in Mymensingh warns that pollution and encroachment are damaging rivers and affecting groundwater, calling for integrated basin management. Shipbreaking Safety: Nine workers died in Sitakunda after suspected hydrogen sulphide exposure at Ferdous Steel; authorities say the ship had earlier “safe” clearance, renewing calls to redesign and properly oversee ship recycling. Energy & Industry: Fuel loading at Rooppur is completed and engineers are checking minor issues before commissioning, while Bangladesh’s broader energy crunch continues to disrupt production. Fisheries Push: National Fisheries Fortnight-2026 was inaugurated, with officials stressing sustainable aquaculture, conservation of indigenous fish, and protecting rivers and water bodies. Policy & Health Industry: Bangladesh’s essential medicines and pricing framework is back in focus after the cancellation of the Essential Medicines List 2026 and Medicine Price Determination Method 2026. Local Policing: Police arrested 72 people in a Tejgaon division drive across multiple crime-prone areas.

Energy & Industry Outlook: Finance Minister Amir Khosru Mahmud Chowdhury says Bangladesh’s power and gas shortages will take at least two years to fix, with floating LNG and transmission constraints delaying any quick relief. RMG Decarbonisation: CPD warns garment factories are running out of time to go green; a study of 350 RMG factories finds rooftop solar and machinery upgrades can cut energy costs and help meet tougher export-market climate demands. Banking & Investment Climate: Excess liquidity hit a record Tk 4.08 lakh crore by June 2026 as private credit growth slows; officials link weak industrial lending to unreliable gas/power and broader uncertainty. Tea Sector Rescue: Govt forms a high-level committee to reschedule tea garden loans, extend fresh credit, set up a 6% revolving fund, and explore declaring tea an agricultural product plus solar use on unused land. Ports & Logistics: Chattogram Port cleared about 15,000 metres of illegal fishing nets from the shipping channel; lighter vessel management software is launched to reduce allocation disputes. Shipbreaking Safety: Renewed scrutiny follows deadly toxic-gas incidents at “green” shipbreaking yards, highlighting the gap between certification and on-ground worker safety. Aviation Incentives: Chittagong Chamber urges incentives for Shah Amanat airport—concessional charges, 24/7 operations, and transit/refuelling—to boost tourism and logistics. Construction Materials: Govt pushes eco-friendly concrete blocks over bricks in public works to cut pollution and protect agricultural land. Women Transport: BRTC will launch a women-only “Pink Bus” service on 18 August with female drivers and conductors.

Energy & Industry Shock: Load shedding is hitting Naogaon’s factories and rice irrigation hard, with businesses forced to rely on costly diesel generators and some cutting output to protect margins. Gas Crisis Update: LNG supply has recovered after earlier disruptions, but the gas shortage is still expected to keep power generation under pressure; Petrobangla data shows national gas supply rising to 2,425 mmcfd as LNG send-out improves. Procurement Reform: BPPA says the government has a roadmap for e-GP Version 2.0 to modernise public procurement into a more citizen-centric, technology-driven system. Shipbreaking Safety: Nine workers died at Ferdous Steel in Sitakunda after toxic gas exposure; operations were suspended and multiple probes launched, renewing calls for real oversight beyond “green” certifications. Telecom Investment: Mobile operators want spectrum pricing treated as a strategic asset to spur network investment and digital inclusion, as Bangladesh prepares for spectrum renewal. Trade & Manufacturing: Adamjee EPZ crossed $1b in annual exports for the second straight year, with exports diversifying into bridal wear, footwear and automotive components. Finance: BRAC Bank reported 57% profit growth in H1 2026, while Dhaka Bank and NSU launched a co-branded Mastercard prepaid card for students. Agriculture & Jobs: A government fish seed farm in Moulvibazar is struggling due to silted ponds and manpower gaps, while Patuakhali’s EPZ is raising local hopes for large-scale job creation.