AGP Executive Report

Energy Crisis & Industry Impact: Gas supply collapse and worsening power shortages are disrupting households and production, with experts urging a 10-year structural plan and an emergency “rescue package” to protect factories and jobs; the Energy Minister says LNG unloading is impossible until the FSRU returns to operation. Gas Protest on Key Route: CNG drivers blocked the Dhaka–Sylhet highway for about 30 minutes in Brahmanbaria over nearly two weeks of gas shortages, causing traffic jams before police persuaded them to withdraw. Aromatic Rice Export Controls: The commerce ministry is tightening aromatic rice exports by asking exporters to submit actual shipment data within three working days so unused quotas can be reviewed as domestic prices jump. Textile & Trade Shows: Dhaka hosted the Bangladesh Yarn, Fabrics & Accessories Show alongside TEXCHEM, while Bangladesh also showcased apparel and textile capacity at SOURCING at MAGIC 2026 in Las Vegas. Investment in Closed State Factories: Fourteen corporate groups submitted 86 proposals to revive closed, loss-making state-owned factories under the Invest Bangladesh Act 2026 framework. Finance for Garment Expansion: City Bank and IDCOL will provide Tk 259 crore to Pearl Global for expansion, targeting thousands of jobs and energy savings. Policy for E-Rickshaws: The government plans a unified regulatory policy for battery-run rickshaws to improve licensing, traffic discipline and road safety. Bangla QR Update: Bangladesh Bank adjusted Bangla QR merchant charges rules, including incentives and changes effective from Oct 1, 2026. Regional Trade Push: Bangladesh seeks Australia and New Zealand support for RCEP accession and proposes FTAs to expand agriculture and food processing trade. UN Security Watch: A UN report warns AQIS may try to exploit Bangladesh to set up terror cells, flagging rising South Asia threat.

Energy & Trade: Bangladesh approved a 12-year LNG deal to import 117 cargoes from US-based Gunvor (2026-2038) under a state-to-state agreement, with pricing linked to JKM and Henry Hub to hedge global volatility, as supply risks rise after disruptions affecting Qatar’s long-term exports. Power & Business Impact: With gas supply instability continuing to hit industries, the government is also pushing longer-term energy steps, including more LNG terminals, to reduce load-shedding pressure on factories and small businesses. Rail Connectivity: India rolled out the first rake of 19 customised LHB broad-gauge passenger coaches for Bangladesh Railway, featuring AC sleeper/chair cars, non-AC seating, CCTV and passenger alarm systems, plus baby care and prayer room facilities. Security Watch: A UN Security Council sanctions monitoring report officially attributed the November 2025 Red Fort blast to Al-Qaeda in the Indian Subcontinent (AQIS) and flagged concern that AQIS may try to exploit Bangladesh to set up cells. Industry & Jobs: Bangladesh seeks homegrown drone capability via partnerships with Turkey and China, aiming to build local defence-related production capacity. Climate & Agriculture: Dhaka’s monsoon flooding is tied to wetland loss, canal encroachment and weak enforcement, while Bangladesh’s shifting seasons are disrupting farming calendars and raising drought-flood swings. Labour Safety: A Riyadh sofa factory fire killed 16 Bangladeshi workers; Bangladesh’s embassy is coordinating repatriation and support for families.

Energy & Industry Stability: Bangladesh approved 12-year LNG procurement for urgent gas demand—117 cargoes via a G2G deal with Gunvor USA LLC (2026-2038) plus additional cargoes from UK, Oman and Hong Kong—while the power ministry said outages may ease as LNG unloading and FSRU capacity issues are addressed. Power Crisis Impact on SMEs: Frequent power cuts are disrupting small businesses’ production and raising costs, with some factories unable to run without generators. Retail Curtailment: Shopping malls, markets and shops must close by 8pm, with billboard and decorative lighting rules, to conserve electricity. Payments & Commerce Enablement: BB’s cashless push faces infrastructure and trust barriers, even as bKash expands Bangla QR merchant adoption nationwide. Trade & Export Risk: HSBC warns exporters face shipping shocks, US tariff uncertainty and shrinking LDC preferences, urging stronger trade deals and resilience planning. Investment Push: A US business delegation in Dhaka is exploring investment in tech, renewable energy and advanced manufacturing; Industries Minister Muktadir also urged US partners to help reach a trillion-dollar economy. Halal Economy: Commerce Minister Muktadir called for building an internationally competitive halal ecosystem beyond food—covering pharma, cosmetics, modest fashion, tourism, logistics and certification. Jobs & Skills: An employment exchange is planned at district level to link jobseekers and employers, and a seminar highlighted Japan-bound employment opportunities for skilled youth. Industrial Data Building: BIDA, ADB and SANEM seek Sylhet stakeholders’ support to build an industrial database for investment targeting. Food Security Procurement: Govt approved imports of sugar, refined soybean oil and lentils, alongside fertilizer procurement of 110,000 tonnes.

Rail & Rolling Stock: RCF Kapurthala will roll out the first rake of 19 LHB coaches for Bangladesh Railway on Aug 12, with AC/non-AC chair cars, sleeper cars and power cars customised for Bangladesh’s operating needs. Trade & Diplomacy: Bangladesh and Singapore are hopeful of an early conclusion of their Free Trade Agreement, while also discussing port/logistics cooperation and energy security. Energy & Industry: Bangladesh is pushing a multi-pronged energy plan—more domestic gas, LNG/LPG options, and scaling solar—to ease the power crisis; meanwhile Gunze United commissioned a 424 kWp rooftop solar project at DEPZ. Textile & Environment: The environment ministry urged realistic, timely compliance steps for RMG and textile industries, including water reuse and ZLD-related measures. Jute Sector Revival: Govt signed leases to reopen three closed state jute mills with about Tk 619cr investment, targeting 11,629 jobs. Shipping & Ports: Chattogram Port fined MV CNC Uranus’s master/agent Tk 1cr (plus VAT) for hiding a steering gear defect; a nationwide vessel census-2026 is set to start Aug 20. Banking & Finance: Banks are shifting toward retail lending as corporate bad loans rise, with retail classified loans far lower than industry lending. Governance & Delivery: ADP implementation hit a 53-year low (67.5%) in FY2025-26, raising questions on development governance resilience. SME/Investment Push: AmCham pledged to help mobilise $5bn investment over five years, and Bangladesh’s energy/industrial push is also being pitched to partners.

Jute Revival: Govt leases three long-closed state-run jute mills to PRAN-RFL and HAMKO under Tk 619cr investment, aiming for at least 11,629 jobs and about Tk 1,175cr annual turnover. Inflation Watch: Bangladesh’s headline inflation eased to 8.32% in July on a sharp fall in food inflation to 7.16%, though economists warn the cooling may be partly temporary. SME Finance Push: BRAC Bank and PKSF expand credit guarantees for microentrepreneurs with Tk 800cr annual financing limit for FY26-27, while Bangladesh Bank also weighs a Tk 1,000cr collateral-free youth loan-plus-grant scheme. Energy & Industry Decarbonisation: IDCOL and MS Dyeing back a 5.85 MWp industrial rooftop solar project, targeting 6.3 GWh clean power annually. Garment Supply Chain Stability: LPP and BGMEA issue joint statements to keep over 350 Bangladeshi suppliers protected amid the FES Retail payment dispute, with LPP continuing sourcing and supporting dialogue. Climate-Resilient Farming: Govt targets sustainable practices on 50.01% of farmland by 2030, shifting toward “green box” support as LDC graduation nears. Transport Data Upgrade: Bangladesh will run its first nationwide vessel census Aug 20-29 to improve inland water transport planning. Digital Access: Bangladesh Bank approves a SahajMobile smartphone pilot to help rural and low-income users access digital and financial services. Labour Impact of Heat: A study estimates extreme heat causes outdoor informal workers wage losses costing up to Tk 77,000cr a year.

Rail Connectivity: The long-awaited Dhaka–Gopalganj “Abhijatri Commuter” train has started, cutting travel time with a low minimum fare of Tk 145 and daily departures (closed on Saturdays). Apparel Trade Dispute: BGMEA and Polish retailer LPP reaffirm their partnership while disputing alleged unpaid liabilities tied to third-party contracts, warning the issue could spill over to hundreds of local LPP manufacturers. Energy Crunch & Industry Impact: Fuel shortage is squeezing power generation and worsening load-shedding, while Bangladesh’s cement supply chain shows clinker still among top imports. Business Reforms: A National Taskforce on Deregulation and Business Facilitation has been formed to cut red tape via single-window services, faster approvals, and online tracking. Economic Zones Pressure: BEZIA says sluggish infrastructure and utilities are holding back production in economic zones, with only 27 units operating so far. Renewables Security Rules: The Home Ministry bars new solar/wind/hybrid projects within 1 km of borders and requires security clearances up to 50 km, reshaping renewable rollout plans. Labour & Welfare: The government is hopeful of announcing the Bangladesh Tea Workers’ Union election schedule by Aug 30, alongside broader tea sector welfare talks. Food Security: A UN report says 26.2% of Bangladeshis faced moderate or severe food insecurity in 2023-25, and 38.6% couldn’t afford a healthy diet in 2025. Overseas Worker Tragedy: Bangladesh confirmed 16 deaths in a Riyadh sofa factory fire, with repatriation process underway.

Deregulation Push: Bangladesh formed a National Taskforce on Deregulation and Business Facilitation to cut red tape and speed investment, with Finance/Planning leading and key regulators on board. Creative Economy Drive: A 27-member National Steering Committee on Creative Economy was set up to approve roadmaps and coordinate ministries for sector growth. RMG & Economic Zones: BGMEA and BEZIA met to push an investment-friendly environment in economic zones, flagging delays in infrastructure and utilities despite plot payments. Trade Body Reform: FBCCI’s board was reduced from 80 to 48 under amended Trade Organization Rules, with tighter election rules ahead of a new board handover. Digital Payments: Bangladesh Bank set Bangla QR interchange reimbursement fee to zero from Oct 1 to boost digital transactions. Energy & Industry Finance: Bangladesh reinstated payment guarantees for renewable energy projects to attract investors amid the energy crunch. Fuel Cash Crisis: Bangladesh Petroleum Corporation sought about Tk 18,699cr lifeline after losses from higher import costs, warning of future LC opening risks. Climate Funding: Environment Minister Mintoo urged long-term climate financing from partners, citing Bangladesh’s high vulnerability. Migrant Worker Tragedy: Dhaka reported 16 Bangladeshi deaths in a Saudi sofa factory fire and said repatriation coordination is underway. Security at Economic Zone: Police arrested 7 over a robbery at an under-construction factory in Mirsarai Economic Zone, recovering looted electric cable.

Riyadh Tragedy: Bangladesh’s Foreign Ministry and embassy officials are coordinating with Saudi authorities after a fire at a sofa factory in Riyadh killed 16 Bangladeshi migrant workers; reports also cite multiple Naogaon victims, with repatriation and compensation steps underway. Energy & Transport Costs: BERC raised jet fuel prices by over 21%, likely pushing airline operating costs and fares; meanwhile, Bangladesh’s power crunch persists as load shedding and gas constraints continue despite partial LNG terminal restart. Macro & Trade: Bangladesh’s FY26 balance of payments shows a wider trade deficit to about $27.3b, with imports rising faster than exports, while July PMI climbed to 57.8 on a manufacturing rebound. ICT Push: Govt outlined five priorities for ICT/telecom, including tax relief, better connectivity, digital public infrastructure, and an AI-ready workforce. Industry Moves: Pahartoli Textiles won LEED Platinum for greener production; Bangladesh and China discussed technology transfer to help the ceramics sector cut energy costs. Labour Welfare: Labour Ministry approved Tk 68.50cr for workers’ welfare in FY27, alongside grants for workers and families.

Economic Pulse: Bangladesh’s PMI jumped 4.9 points to 57.8 in July, led by a sharp manufacturing rebound (65.4); services (56.0) and agriculture (55.2) stayed in expansion while construction eased but remained in contraction (49.3). ICT Push: The PM’s adviser Rehan Asif Asad laid out five ICT/telecom priorities—lower telecom tax burden (including removing the SIM tax), better mobile/broadband quality, Digital Public Infrastructure via “One Citizen, One ID, One Digital Wallet,” AI-ready talent, and electronics manufacturing incentives. Skills for Trade: NSDA completed first-ever task analysis and occupational mapping for “Chinese Language,” paving the way for competency standards and training for employment-linked roles. Digital Services Regulation: BTRC is considering a common framework so ISPs can bundle OTT streaming with broadband packages. Trade Pressure: Bangladesh’s trade deficit hit a three-year high at $27.28b in FY26 as imports rose faster than exports. Energy Cost Shock: BERC raised jet fuel prices by over 21% (domestic Jet A-1 to Tk 159.52/litre), likely to feed into airfares. Agri-Industry & Exports: Soy Connext 2026 highlighted rising Bangladesh soy demand drawing US exporters; jute cultivation in Khulna surpassed targets. SME Growth Online: Meta and LightCastle launched a Small Business Growth Academy for digital and AI-enabled marketing and expansion. Labour Welfare: Govt approved Tk 68.50cr for workers’ welfare under the Labour Welfare Foundation for FY27. Market Watch: DSE saw renewed selling amid liquidation fears as DSEX fell 38 points; ICB introduced a fair-valuation policy for its Tk 14,983cr portfolio.

Deep-sea port push: PM Tarique Rahman flew to Maheshkhali to inspect the Matarbari deep-sea port, coal-fired power project and the Maheshkhali Integrated Development Authority, then planned visits to flood-hit areas for rehabilitation and new homes. Blue economy & tax role: A policy piece highlights how Bangladesh’s Blue Economy—from ports and shipping to offshore energy and marine tourism—will depend heavily on fiscal rules and NBR’s tax/VAT/customs choices to steer investment and sustainability. Energy strain on RMG: Bangladesh textiles are still reeling from the gas crunch after a fire at an LNG terminal cut supply to about half, forcing factories to run at up to 40% below capacity and switch to costlier fuels. Industrial park plan: Govt eyes a new 400-acre industrial park in Bogura to ease SME plot demand as the existing BSCIC estate is full, with emphasis on cheaper finance and better power/gas access. Construction materials hit: Prefabricated steel demand is collapsing as public infrastructure spending falls and duty-free imports undercut local producers. Aviation disruption: Biman’s Rome-grounded aircraft repair started; 174 Bangladeshi passengers were stranded for nearly 33 hours, with embassy support and special care arranged. Governance & policing: Campus clashes in Dhaka and elsewhere saw police control but no legal action; PM also urged UNOs to treat people as their own and act with responsibility. Tourism bottleneck: TTDC launch targets lifting tourism’s GDP share from ~3% to 6–7%, but travel advisories and coordination gaps still hold back investment. Public procurement audit: CAG audit flags nearly Tk5cr loss in BCIC’s software procurement; BCIC disputes the claim.

Energy & Industry: Textile factories in Gazipur and other industrial belts are gradually restarting after the gas crunch eased, with some mills running at 60–80% capacity versus 40% last week, as Petrobangla said two FSRUs are supplying about 750 mmcfd and one terminal has partially resumed; the wider squeeze was triggered by a fire and technical glitch at an LNG facility. Trade & Exports: Royal Footwear PLC is moving to the capital market via an IQIO to raise fresh funds to double production and expand exports, while Bangladesh’s CEPA push with South Korea is framed as a step toward deeper industrial collaboration beyond RMG. Industrial Policy: The government plans a new 400-acre industrial park in Bogura to serve SME demand as the existing BSCIC estate is fully occupied, and Industries Minister Muktadir wants CMSMEs’ share of GDP to rise above 60%. Construction Materials: Bangladesh’s prefabricated steel sector is hit by a demand slump tied to weaker public infrastructure spending and duty-free imports. Tech & Investment: Kaliakair Hi-Tech Park has attracted investment proposals totaling about US$283m so far, and the park is positioning for AI data-centre activity. Transport & Safety: BRTA cancelled licences of two buses after a Sylhet highway crash killed nine. Business & Finance: Prime Bank signed a deal with CA Property for apartment discounts for customers and employees. Governance & Risk: RAJUK plans phased assessments to identify vulnerable buildings and cut earthquake risk.

Energy & Industry: Bangladesh’s gas and fuel squeeze stays in focus as the Cabinet Committee on Government Purchase approved a direct G2G LNG cargo from Aramco Trading Singapore (delivery Aug 11-12) at $21.55/MMBtu, while the Ministry of Power ordered BPC to draft a private-sector refined fuel import and marketing policy within days—an expert-backed concern is that the timeline may be too rushed for energy-security and market-regulation checks. Transport & Manufacturing: The government is moving ahead with an electric bus push, with BRTC preparing to procure hundreds of e-buses (including women-focused units), but transport experts question whether BRTC can handle charging, maintenance, and long-term fleet reliability. Textile Sector: Bangladesh textile mills are rethinking energy sources after the gas crisis, with factories reportedly running at reduced capacity and shifting to costlier fuels to meet orders. Skills & Value Chain: Rieter says it aims to boost yarn output via automation (1.9 tons per shift by 2027), while PCIU’s Textile Education Fest 2026 connects textile engineering students with industry testing and industrial engineering sessions. Infrastructure Disruption: A Bailey bridge collapse in Daudkandi has cut a key Chandpur–Dhaka road link, forcing detours for thousands. Trade & Policy Signals: Bangladesh’s RMG export competitiveness remains under pressure as buyers seek clarity on energy reliability, and tariff dynamics abroad could shift orders toward Bangladesh if power and gas stabilize.

LNG Procurement: Bangladesh’s Cabinet Committee on Government Purchase (CCGP) approved direct government-to-government purchase of one LNG cargo from Aramco Trading Singapore for delivery on Aug 11-12 at $21.55 per MMBtu, aiming to steady fuel supply for power and industry. Digital Payments: Bangladesh Bank Governor Md Mostaqur Rahman joined the Bangla QR campaign in Chattogram, paying at Gani Bakery to push a safer, simpler cashless ecosystem for businesses and consumers. Semiconductor Push: AIUB hosted the opening of “VLSITHON 3.0,” Bangladesh’s biggest VLSI competition, with 106 teams and a new “Place and Route (PnR)” track. Garment Job Losses: Ashulia’s Alliance Knit Composite laid off 565 workers from Aug 8, citing order slump and banking support issues. Road Safety Warning: A Road Safety Foundation report says 416 people died and 629 were injured in 458 crashes in July, with motorcycles and speeding flagged as major drivers. Energy Investment Plan: The government unveiled a Tk 128,013 crore three-year power and energy investment roadmap, including smart grid and transmission upgrades. RMG Skills for Japan: State Minister Bobby Hajjaj said youth going to Japan will be prepared with language, technical skills and tech knowledge aligned to labour-market needs.

Energy & Fertiliser Supply: Bangladesh’s Cabinet Committee on Government Purchase approved importing 35,000 tonnes of MOP fertiliser from Russia under a G2G deal, aiming to keep farm input supply stable. It also recommended emergency direct procurement of eight LNG cargoes from four international suppliers to protect gas supply amid geopolitical uncertainty, plus 5,000 tonnes of LPG for emergency demand. Power & Industry: With gas supply improving after LNG terminal restart, the government is pushing coordinated steps to ease the energy crunch that has been disrupting production and raising costs. Worker Welfare in RMG: Guardian Life Insurance and BKMEA signed an MoU to expand life insurance, 24/7 telemedicine and hospital discounts for knitwear workers; the labour ministry is now looking to scale a nationwide worker health coverage model. Agricultural Credit: Bangladesh Bank data show agricultural and rural credit disbursement in FY26 hit Tk 42,834.16 crore, surpassing the target. Trade & Investment: FBCCI welcomed Bangladesh–South Korea CEPA, expecting duty-free access for most export items and a boost for RMG exports; BIDA briefed investors on FY27 budget measures on deregulation and incentives. Markets: DSE ended the week lower as DSEX slipped to 5,861, with textile and insurance leading turnover.

Fertiliser Supply: The Cabinet Committee on Government Purchase approved importing 35,000 tonnes of MOP fertiliser from Russia under a government-to-government deal, with an estimated cost of Tk 168.29 crore. Energy Security: The Cabinet Committee on Economic Affairs recommended direct procurement of eight LNG cargoes from four international suppliers to stabilise gas supply, alongside emergency LPG procurement of 5,000 tonnes. Road Connectivity: CCGP also cleared variation orders worth over Tk 3,200 crore for SASEC Road Connectivity Project-2 to upgrade the Elenga-Hatikamrul-Rangpur highway to four lanes. RMG Under Pressure: Christmas apparel shipments from Bangladesh are at least 10% lower year-on-year as weak Western demand and domestic gas/power shortages disrupt production. Investment Climate: Bida flagged policy continuity and political stability as key issues hurting investor confidence, while Bangladesh Bank minutes point to a shift toward less tight monetary policy. Trade Boost: FBCCI says South Korea CEPA could bring duty-free access for about 97% of Bangladeshi products and help cut the trade deficit, with RMG expected to be a major beneficiary. Digital Policy: A draft National Cyber Security Strategy for 2026-2030 puts AI and quantum-era threats at the centre, including plans for a 20,000-strong cyber workforce. Industry Support: Guardian Life and BKMEA signed an MoU to expand low-cost insurance and telemedicine coverage for knitwear workers.

RMG Backward Linkage Push: BGMEA and OCAIB have launched an initiative to attract Chinese investment and set up joint ventures to strengthen Bangladesh’s readymade garment upstream supply chain, including technology transfer and support for operational and closed factories. Textile Sector Support: Texachem says it will back textile mills with practical, quality-focused chemical solutions aimed at improving first-pass quality, cutting reprocessing, and reducing water/steam/energy use. Energy & Industry Pressure: Bangladesh’s gas and power crunch is hitting production—over 200 small Gazipur garment units have declared a 3-day holiday due to low gas pressure, while the commerce minister blamed 17 years of energy mismanagement and urged patience as supply stabilises. Rail & Construction Materials: After PM direction to curb imports, govt agencies are increasing use of Maddhapara stone, including ballast supply deals with Bangladesh Railway and revised project designs/cost estimates. Infrastructure Engineering Outlook: RITES says it has entered FY27 with a record ₹9,445 crore order book and expects growth supported by rail, highways, logistics and AI-led engineering solutions. Green Factory Pricing Reality: An explainer notes Bangladesh’s LEED-certified garment factories are costlier (often 20%-30% higher build cost) but buyers still rarely pay extra for “green” credentials, despite stronger focus on energy, water and waste. Energy Markets Watch: Oil prices eased on Iran-Oman Hormuz progress, while LNG pricing in East Asia edged up on heat and geopolitical risk—relevant for Bangladesh’s gas import planning.