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April 23, 2025
Economy Tag : Export

The Bangladeshi government has suspended its recent decision to sharply increase export fees on raw jute and jute products after significant backlash from industry players. The fee for raw jute exports was set to rise from Tk 2 to Tk 7 per bale, and for jute products from Tk 0.10 to Tk 0.50 per Tk 100—marking a substantial jump after 30 years. Industry representatives argued that such a sudden increase would have negatively impacted the sector, which is already facing higher costs and lower global demand. The ministry cited the need for further review and stakeholder input before proceeding, highlighting the government’s commitment to balancing fiscal needs with industry sustainability.

April 23, 2025
Economy Tag : FDI

In 2024, net foreign direct investment (FDI) in Bangladesh fell to a five-year low at $1.27 billion, extending a downward trend that began after the 2021 post-pandemic surge. The drop—a 13.25% decrease from 2023—was highlighted by declining equity inflows and a sharp fall in reinvested earnings. Economists attribute the slump to persistent structural issues like regulatory delays, rising business costs, energy shortages, currency volatility, and an unpredictable policy environment. As Bangladesh prepares for LDC graduation and aims to diversify its economy, experts warn that urgent reforms are needed to improve the business climate, reduce red tape, and ensure reliable infrastructure to restore investor confidence. Although certain sectors, such as pharmaceuticals and IT, remain promising, ongoing political instability and implementation gaps continue to deter new foreign investments. Without significant improvements, Bangladesh risks missing out on becoming a regional supply chain hub and sustaining long-term economic growth.

April 23, 2025
Economy Tag : Govt.

The government has increased the monthly salaries of outsourced workers in state-owned and state-run organizations for the first time in six years, raising pay by Tk 570 to Tk 1,102 depending on city and job category. The finance ministry’s new circular also introduces three additional job categories, bringing more types of specialized workers under the revised pay structure. Around 70,000 outsourced workers will benefit from these changes, with the highest wages set for those based in Dhaka. Besides salary hikes, outsourced staff will now be entitled to two annual festival bonuses, a new year allowance, annual leave, women’s maternity leave, and participation in the universal pension scheme. The move also creates special categories for high-skilled roles such as IT service providers and sociologists, with significantly higher salaries. These adjustments aim to improve job conditions and retain skilled manpower in government institutions across the country.

April 24, 2025
Industry : Energy & Power

Qatar has agreed to renew a previously expired MoU with Bangladesh for liquefied natural gas (LNG) supply and advance discussions on a land-based LNG terminal in Cox’s Bazar. Under the existing SPA signed in 2017, Bangladesh imports 1.5–2.5 million tonnes per annum (MTPA) of LNG for 15 years, with a second SPA signed in June 2023 for an additional 1.5 MTPA starting in January 2026. Qatar currently supplies 40 LNG cargoes annually, with potential to scale up. Bangladesh plans to build an LNG terminal and pipeline in Matarbari to accommodate up to 115 cargoes per year. Qatar’s Energy Minister Saad Al Kaabi confirmed long-term supply commitments and noted potential LNG price reductions as Qatar aims to double production. Discussions also included increasing urea exports to Bangladesh. Chief Adviser Muhammad Yunus and Energy Adviser Fouzul Kabir Khan emphasized restructuring Bangladesh’s energy sector with Qatar’s collaboration to enhance supply security and infrastructure.

April 24, 2025
Industry : Logistics & Shipping

The Chittagong Port Authority (CPA) signed a Tk 61.96 billion contract with a Japanese joint venture (Penta-Ocean Construction and TOA Corporation) to build Bangladesh’s first deep-sea port at Matarbari, as part of the revised Tk 243.81 billion Matarbari Port Development Project. The port, located in Cox’s Bazar, will feature a 300m multipurpose berth, 460m container berth, and a 14.3km channel with 16m depth and 350m width. It includes civil works, extension of the North Breakwater by 397m, procurement of cranes and tugboats, and construction of road, rail, and river links. Initiated in January 2020 and scheduled for completion by December 2029, the project is 73.7% financed (Tk 179.69 billion) by JICA. Once operational, it will handle 0.6–1.1 million TEUs, increasing to 2.2–2.6 million by 2041, and berth ships up to 8,200 TEUs, reducing reliance on transshipment hubs, boosting trade efficiency, and positioning Bangladesh as a strategic maritime gateway.

April 24, 2025
Industry : Stock Market

Over the past seven years, 56 companies raised Tk5,178 crore through IPOs in Bangladesh, but 24 of them—collectively raising over Tk2,000 crore—have been downgraded to the Z and B categories due to poor financial performance. These firms, including Global Islami Bank (Tk425 crore, 2021), Ring Shine Textile (Tk150 crore, 2019), and Lub-rref Bangladesh (Tk150 crore, 2021), have failed to deliver promised returns, with many not paying regular dividends or publishing financial reports. In 2019 alone, 9 IPOs raised Tk640 crore, with 6 firms—over Tk500 crore worth—now in the Z category. Regulatory bodies like BSEC have taken actions such as board dissolutions and are now pursuing legal measures. Experts attribute the crisis to manipulated financials and weak oversight, alleging that some listings under past commissions were influenced by corruption. This misuse of IPO funds and market manipulation has eroded investor confidence and raised concerns about the integrity of Bangladesh’s capital market.

January 8, 2025

TRANSFORM, an impact accelerator led by Unilever, the UK Government, and EY, announced grants of up to BDT 10 million each for two Bangladeshi SMEs focused on climate resilience. Deshifarmer, an agri-tech platform, connects farmers directly to consumers, aiming to benefit 3,000 farmers and 20,000 consumers in its first year. Techno Plastic Solution addresses ocean plastic pollution by improving collection infrastructure and launching a pilot program in Kuakata to collect 100 tonnes of plastic waste monthly. The Bangladesh Climate Challenge, launched in October 2023, supports enterprises working on climate resilience through funding and resources. This collaboration between Unilever, the UK Government, and EY marks their first joint effort in Bangladesh. TRANSFORM has previously supported 10 other enterprises in Bangladesh, impacting over three million lives.

January 8, 2025

A proposed hike in gas prices by Petrobangla has sparked major concerns among industrialists in Bangladesh, fearing economic harm. Industrial leaders argue that the increase, if approved, could lead to factory closures, job losses, and reduced industrial output, harming economic growth and potentially causing social unrest. Critics like Kutubuddin Ahmed and Abdullah Hil Rakib highlight that rising power and production costs already challenge competitiveness. The proposal affects new and existing gas users, with significant cost increases tied to LNG imports and additional charges. Industry leaders urge the government to reconsider the proposal, warning of the detrimental impact on both industries and the broader economy.

January 8, 2025

In FY 2023-24, the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) faced operating losses due to reduced trading, fewer IPOs, and increased costs. The DSE’s core revenue of Tk 125 crore fell short of expenses, causing a Tk 20 crore loss, while the CSE incurred a Tk 10 crore loss with Tk 31 crore in core revenue. Both exchanges relied on fixed deposit interest to achieve net profits of Tk 61 crore (DSE) and Tk 31 crore (CSE).

Declining daily turnovers, down to Tk 622 crore for the DSE, coupled with poor fund management and risky investments in troubled banks and NBFIs, exacerbated challenges. Experts recommend reforms, product diversification, and stronger company listings to revitalize the market. Meanwhile, 95% of brokerage houses are struggling with operating losses due to sluggish trading.

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Qatar To Renew LNG MoU With Bangladesh For Expanded Supply
April 24, 2025
Industry : Energy & Power

Qatar has agreed to renew a previously expired MoU with Bangladesh for liquefied natural gas (LNG) supply and advance discussions on a land-based LNG terminal in Cox’s Bazar. Under the existing SPA signed in 2017, Bangladesh imports 1.5–2.5 million tonnes per annum (MTPA) of LNG for 15 years, with a second SPA signed in June 2023 for an additional 1.5 MTPA starting in January 2026.

CPA Signs Tk 61.96B Deal For Matarbari Deep Sea Port
April 24, 2025

The Chittagong Port Authority (CPA) signed a Tk 61.96 billion contract with a Japanese joint venture (Penta-Ocean Construction and TOA Corporation) to build Bangladesh’s first deep-sea port at Matarbari, as part of the revised Tk 243.81 billion Matarbari Port Development Project.

Tk2000 Crore Raised By 24 Firms Now In Z And B Categories
April 24, 2025
Industry : Stock Market

Over the past seven years, 56 companies raised Tk5,178 crore through IPOs in Bangladesh, but 24 of them—collectively raising over Tk2,000 crore—have been downgraded to the Z and B categories due to poor financial performance.

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Two Bangladeshi Startups Receive BDT 10M Grants
January 8, 2025
Company: Deshifarmer

TRANSFORM, an impact accelerator led by Unilever, the UK Government, and EY, announced grants of up to BDT 10 million each for two Bangladeshi SMEs focused on climate resilience.

Petrobangla's Proposed Gas Price Hike Could Harm Economy
January 8, 2025
Company: PetroBangla

A proposed hike in gas prices by Petrobangla has sparked major concerns among industrialists in Bangladesh, fearing economic harm. Industrial leaders argue that the increase, if approved, could lead to factory closures, job losses, and reduced industrial output, harming economic growth and potentially causing social unrest.

Reduced IPOs and Higher Costs Lead to DSE's Tk 20 Crore Loss
January 8, 2025

In FY 2023-24, the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) faced operating losses due to reduced trading, fewer IPOs, and increased costs. The DSE's core revenue of Tk 125 crore fell short of expenses, causing a Tk 20 crore loss, while the CSE incurred a Tk 10 crore loss with Tk 31 crore in core revenue.

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Jute Export Fee Hike Paused for Industry Review
April 23, 2025
Economic Tag : Export

The Bangladeshi government has suspended its recent decision to sharply increase export fees on raw jute and jute products after significant backlash from industry players. The fee for raw jute exports was set to rise from Tk 2 to Tk 7 per bale, and for jute products from Tk 0.10 to Tk 0.50 per Tk 100—marking a substantial jump after 30 years.

FDI Plunges to Five-Year Low Amid Structural Challenges
April 23, 2025
Economic Tag : FDI

In 2024, net foreign direct investment (FDI) in Bangladesh fell to a five-year low at $1.27 billion, extending a downward trend that began after the 2021 post-pandemic surge. The drop—a 13.25% decrease from 2023—was highlighted by declining equity inflows and a sharp fall in reinvested earnings.

Govt Hikes Salaries and Benefits for Outsourced Workers
April 23, 2025
Economic Tag : Govt.

The government has increased the monthly salaries of outsourced workers in state-owned and state-run organizations for the first time in six years, raising pay by Tk 570 to Tk 1,102 depending on city and job category. The finance ministry’s new circular also introduces three additional job categories, bringing more types of specialized workers under the revised pay structure.

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