United News of Bangladesh

Leaders in Bangladesh’s spinning industry on Thursday urged the government to take immediate measures to protect the sector from what they described as a “deepening crisis,” which has already forced nearly 40% of factories to shut down and rendered more than 100,000 workers jobless. "We have international quality, qualified manpower and capacity to ensure full support to the garment sector. If the government fails to take immediate action, we will take to the streets to restore," he said. The appeal came at a press conference in Dhaka, where Salma Group CEO Azhar Ali presented a set of proposals on behalf of workers, employees and officials associated with the spinning sector. Industry representatives said the spinning sector — a key backward linkage to Bangladesh’s apparel industry — has been struggling for years due to Covid-19 fallout, the Russia-Ukraine war, dollar shortages, and sharp hikes in fuel and energy prices. Rising production costs and declining competitiveness have pushed many factories to the brink of closure, they said. Speakers said that due to prolonged challenges, around 40% of spinning mills have halted production, while the remaining factories are operating at 50–60% capacity because of reduced access to imported raw materials and rising operational expenses. They warned that unless urgent steps are taken, more factories may be forced to suspend operations, affecting the livelihoods of several hundred thousand people directly and indirectly dependent on the sector. The sector placed five major proposals for the government’s immediate consideration: Restore and expand export incentives The government previously reduced the 5% export incentive for the garment sector to 1.5%. Leaders demanded reinstating the earlier rate and introducing a 10% cash incentive for exporters using locally produced yarn. They also called for a 10% safeguard duty on imported yarn to protect domestic producers.   After energy prices rose by up to 350% in three phases, production costs increased sharply. The sector demanded a 30% rebate on gas and electricity bills for all export-oriented factories for at least two years. Industry representatives said subsidized yarn from exporting countries is entering the domestic market at prices lower than local production costs. They urged the Ministry of Commerce to impose anti-dumping or safeguard duties. They cited the example of Indonesia’s KPPI, which recently announced safeguard duties on cotton yarn for three years (45 cents per kg in the first year, decreasing gradually). The spinning sector demanded reinstatement of the Bangladesh Bank’s Export Development Fund (EDF) facility — previously worth around $8 billion — for the next two years to support backward linkage industries. They also urged the government to require export-oriented industries to source at least 70% of raw materials domestically. Additionally, the sector sought an additional 5% incentive for recycled and sustainable yarns, along with 10-year loans at 5% interest for modernizing machinery. They asked for increasing import capacity for raw materials. Due to the depreciation of the taka, raw material import capacity has declined by around 40%, they said. The industry requested measures to increase import limits so factories can return to full production. Mohammad Shahinul Haque, speaking on behalf of workers and industry personnel, said the spinning sector is vital for Bangladesh’s export competitiveness and deserves urgent policy support. He said the sector is hopeful that the government will “take the matter seriously and act promptly to prevent further deterioration.”

Speakers and policy makers in a seminar on Thursday warned that Bangladesh's economic stability remains severely threatened without the immediate establishment of a credible bank resolution regime. The warning was issued from a seminar hosted by the Policy Research Institute of Bangladesh (PRI), with support from the Foreign, Commonwealth & Development Office (FCDO), titled "Bank Failures and Resolution Regime: Understanding the Challenges for Bangladesh". Lutfey Siddiqi, Special Envoy to the Chief Adviser for International Affairs, attended as the Chief Guest and stressed the critical need for change. He stated, "If the banking sector continues with business as usual, nothing will change. Ensuring good governance regardless of which political party forms the government is essential." Dr. Ashikur Rahman, Principal Economist at PRI, delivered a trigger presentation focusing on the necessary follow-up to legislative reform. He argued that simply "passing the Banking Resolution Ordinance is only half the job". The real challenge lies in making a serious investment in the "processes, systems, and institutional capacities" needed for the Bangladesh Bank and the financial sector to actually implement the resolution regime. "Without the ability to execute orderly resolutions, manage failing banks efficiently, and protect depositors while minimising systemic risks, the Ordinance will remain a promise on paper," Dr. Rahman cautioned. Dr. Zaidi Sattar, Chairman of PRI, chaired the event and highlighted the unique crisis facing the nation's financial sector. He noted that the recent rise of non-performing loans (NPLs) to nearly 35 percent is "unprecedented," exceeding levels seen even in countries affected by the global financial crisis. Dr. Sattar described the situation where many distressed banks are "too toxic to fail," as allowing them to collapse could cause severe economic contagion. The impact of this instability on external investment was underscored by Professor Dr. Mohammad Akhtar Hossain, Chief Economist at Bangladesh Bank. Dr. Akhtar pointed out that the already low Foreign Direct Investment (FDI)-to-GDP ratio is being hampered by the "combination of high NPLs and ongoing political uncertainty," making it extremely difficult to attract foreign capital. The seminar concluded with an open-floor discussion among participants—including policymakers, business leaders, and financial sector experts—who exchanged insights on priority reforms such as legislative updates, strengthened deposit protection, and enhanced crisis preparedness.

Nuvista Pharma PLC has partnered with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Olwel BD Ltd. to launch a Digital Hospital Pilot Project aimed at improving access to primary healthcare and mental health support for Ready-Made Garments (RMG) workers and their families across Bangladesh. Nuvista Pharma PLC’s Managing Director S M Rabbur Reza, Olwel BD Ltd Chairman Mojahedul Hoque Abul Hasanat & BGMEA Senior Vice President Inamul Haq Khan signed the MoU on Wednesday. Through this initiative, Nuvista Pharma will help strengthen access to timely gynecological, reproductive, and specialist healthcare services for workers—particularly women—by supporting a structured referral network and promoting evidence-based care pathways. This partnership reflects Nuvista’s long-standing mission to enhance community health and wellbeing through impactful, accessible healthcare solutions. S M Rabbur Reza, Managing Director, Nuvista Pharma PLC said, ‘We believe every worker deserves access to timely and quality healthcare. This collaboration allows us to reach RMG workers—especially women with essential services that support both their physical and mental wellbeing.’ Olwel BD Ltd. will operate the digital healthcare platform, providing 24/7 GP consultations, secure electronic health record (EHR) management, follow-up services, and factory-level demonstrations. Mojahedul Hoque Abul Hasanat, Chairman, Olwel BD Ltd. said, ‘Our mission is to make healthcare accessible anytime and from anywhere. By integrating our digital platform into RMG factories, we aim to remove barriers workers face when seeking care and create a more responsive health ecosystem.’ Chinese delegation meets BGMEA leaders to explore diversified investment opportunities BGMEA will coordinate factory participation, support HR and compliance teams and ensure effective communication with workers. Inamul Haq Khan, Senior Vice President BGMEA said, ‘This partnership reflects our commitment to strengthening worker welfare through innovative and impactful healthcare solutions. Bringing digital healthcare directly to workplaces will help reduce untreated health issues and improve overall wellbeing.’ The pilot will begin with 5,000 workers from selected factories and expand to include 10,000 workers within three months. All participants will receive digital healthcare support for one year. Future scale-up will depend on project performance and worker outcomes. Under the MoU, the three organizations will jointly monitor progress through quarterly reporting, ensuring data confidentiality, service quality and scalability. This collaboration marks an important milestone in strengthening workplace health systems within Bangladesh’s RMG industry. By combining Nuvista Pharma’s healthcare leadership, Olwel’s digital capabilities and BGMEA’s industry reach, the Digital Hospital Pilot aims to enhance worker wellbeing, reduce absenteeism, and set a new benchmark for accessible healthcare in factories nationwide.    

Bangladesh Bank, has purchased a significant amount of US dollars from local banks as part of its ongoing efforts to stabilise the foreign exchange market and support the flow of remittances and repatriate export earnings. On Thursday (December 11), the central bank acquired approximately $149 million from 16 banks through a ‘Multiple Price Auction’ system. Bangladesh Bank Executive Director and spokesperson, Arif Hossain Khan, confirmed the transaction.  "A total of $149 million dollars were purchased from 16 banks through the Multiple Price Auction. The dollar rate during this period was determined between Tk 122.25 and Tk 122.29 per dollar," he stated. With this latest acquisition, the total amount of foreign currency purchased by the central bank through the auction mechanism in the current Fiscal Year (FY) 2025-26 has reached $2.663 billion. Bangladesh Bank initiated the dollar purchasing process via auctions on July 13 and has since accumulated this substantial amount of foreign currency as part of the new policy.

Coca-Cola announced Wednesday that its chief operating officer, Henrique Braun, will take over as CEO in the first quarter of 2026. The Atlanta-based beverage company said its board elected Braun, 57, to the role effective March 31. Current CEO and chairman James Quincey will transition to executive chairman. Braun, a 30-year Coca-Cola veteran, became COO earlier this year after leading operations in Brazil, Latin America, Greater China and South Korea. He has also overseen supply chain, marketing, innovation, bottling operations, general management, and new business development. Born in California and raised in Brazil, Braun holds a bachelor’s in agricultural engineering from the University Federal of Rio de Janeiro, a master’s from Michigan State University, and an MBA from Georgia State University. Trump says Coca-Cola to use cane sugar in US David Weinberg, Coca-Cola’s lead independent director, called Quincey, 60, a “transformative leader” who will remain active in the business. During his nine-year tenure as CEO, Quincey expanded Coke’s portfolio with more than 10 billion-dollar brands, including BodyArmor and Fairlife, and entered the alcoholic beverage market with Topo Chico Hard Seltzer. In 2020, he led a major restructuring that halved Coke’s brands and cut thousands of jobs to focus on faster-growing products like Simply and Minute Maid juices. As Quincey steps down, Coca-Cola faces challenges including slow demand in the U.S. and Europe and heightened consumer scrutiny of ingredients. This summer, following a suggestion from former President Donald Trump, the company announced it would release a cane sugar version of its classic Cola. Weinberg expressed confidence that Braun would build on the company’s strengths and pursue global growth opportunities. Coca-Cola shares were flat in after-hours trading. Source: AP 

Bangladesh Bank has finalized a draft special scheme to refund Tk2.0 lakh initially, then Tk 1.0 lakh in each three months to the depositors of merged five troubled Shariah Bank. This initial amount will be paid out from the ‘Deposit Insurance Fund’. Following this, depositors whose balances exceed Tk2.0 lakh will be allowed to withdraw a maximum of Tk 1.0 lakh every three months for up to two years, said an official to UNB on Wednesday. The authorities closed the merger process and said that the scheme was finalized at a crucial meeting chaired by Governor Dr. Ahsan H. Mansur at Bangladesh Bank on Tuesday.  The meeting included Mohammad Ayub Mia, Chairman of the newly formed 'Sammilito Islami Bank PLC,' four Deputy Governors, the Administrators of the five troubled banks, and relevant departmental officials. The complexities have arisen in returning the funds because the new bank (Sammilito Islami Bank PLC) has not yet developed its database or appointed a Managing Director, creating a legal hurdle.  Despite this, the Governor has issued a directive to begin the process of refunding the money within December 2025. Central Bank officials have discouraged customers from withdrawing money unnecessarily. They emphasized that since the new bank is fundamentally sound, withdrawing funds is not mandatory.  The primary goal of this scheme is to restore confidence among depositors and gradually bring stability back to the banking sector. The central bank outlined the specific withdrawal limits under the scheme. To avail themselves of the scheme’s benefits, customers must meet certain conditions. Such as the account must be valid and opened against a National ID Card, a customer with multiple accounts in a single bank will only receive the benefit against ‘one account’, a customer holding separate accounts in all five merged banks will be eligible for a separate payment against each account and depositors with outstanding loans cannot receive the payment until the loan is reconciled. The five banks being merged are Exim Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank, and Union Bank. They all fell into deep crises due to massive loan fraud and irregularities by the S. Alam Group, that exercised its influence with the Awami League government to illegally control four of them, and the Nassa Group of Nazrul Islam Majumdar, who controlled the other. The authorized capital for Sammilito Islami Bank PLC has been set at Tk 40,000 crore, with a paid-up capital of Tk 35,000 crore ( Tk20,000 crore from the government and Tk15,000 crore from depositors' shares). Bangladesh Bank data shows the five banks hold deposits of approximately Tk1.42 lakh crore from 75 lakh depositors, against loans totaling Tk 1.93 lakh crore, a large portion of which is now treated as non-performing. The new bank has already taken office space in the Senakalyan Bhaban in Motijheel. Measures, including a 20 percent cut in employee salaries and allowances and merging multiple branches in the same area, have been taken to reduce operational costs.

Bangladesh Bank now allows capital machinery import in foreign credit without permission from the Bangladesh Investment Development Authority (BIDA). Companies can now directly import necessary machinery and equipment using foreign loans with a minimum three-year term, without needing prior approval from the BIDA. The Foreign Exchange Policy Department of Bangladesh Bank issued the directive on Wednesday (December 10). Industry stakeholders believe this new initiative will significantly ease the import process for the industrial sector. The directive states that this industry-friendly measure was introduced as part of implementing the decision of BIDA’s foreign debt committee. Previously, the long-term credit facility was primarily available only for the import of new machinery. The new regulation expands the scope: Various capital goods, including ships, equipment, and machinery, can now be imported on three-year installment credit. The foreign loan can be secured from either the foreign supplier or a foreign bank. Entrepreneurs praised the decision, noting that it will reduce import complexities and help in the rapid procurement of essential capital goods, which is crucial for increasing production and industrial expansion. BKMEA President Mohammad Hatem said that the new rule will accelerate the industrial and manufacturing sectors, while also encouraging long-term planning and new investments.

The strong upward trend in remittance continues as Bangladesh received more than US$1.16 billion in the first nine days of December, according to the latest data from Bangladesh Bank. The amount marks a 22.6 percent rise from the same period last year when expatriates sent around $945 million. Officials attribute the growth to incentives for sending money through formal channels, stronger encouragement for using the banking system, and the active role of authorised exchange houses. Between July 1 and December 9, total receipts reached $14.2 billion, up by $2.12 billion from $12.08 billion in the corresponding period of FY 2024-25. This reflects a year-on-year growth rate of 16.5 percent.

Speakers at a discussion urged the interim government to strengthen its energy governance and accelerate exploration and infrastructure upgrades to prevent a deepening energy crisis. Speakers said this at a discussion titled ‘Powering Bangladesh Toward Energy Security’ organised by the American Chamber of Commerce in Bangladesh (AmCham) in the capital on Tuesday. The event was supported by Chevron Bangladesh, an industry leader whose 30-year partnership has significantly contributed to Bangladesh’s economic growth and community development, investing approximately USD 4.2 billion as the country’s largest gas producer, supplying nearly 60% of domestic demand, said a press release. Syed Ershad Ahmed, President of AmCham Bangladesh, underscored that energy security is currently critically important for Bangladesh. He also highlighted that the country’s energy sector faces persistent fuel shortages, outdated transmission systems, declining gas reserves, and overreliance on imported fuels, which undermine reliability and industrial growth. Strengthening regulatory governance, accelerating exploration, upgrading infrastructure, expanding renewables, and enabling clearer investment pathways are essential to building a resilient, secure, and future-ready energy ecosystem. Syed Ershad Ahmed, said that the country’s energy sector faces persistent fuel shortages, outdated transmission systems, declining gas reserves, and overreliance on imported fuels, which undermine reliability and industrial growth. Strengthening regulatory governance, accelerating exploration, upgrading infrastructure, expanding renewables, and enabling clearer investment pathways are essential to building a resilient, secure, and future-ready energy ecosystem. AmCham dialogue stresses urgent reforms to boost investment competitiveness Paul Frost, Commercial Counselor, U.S. Embassy, Dhaka, moderated the session, reflecting the continued commitment to strengthening U.S.–Bangladesh trade and investment cooperation. The event was also attended by Mr. Eric M. Walker, Vice President of AmCham and President, Chevron Bangladesh; Prof. M. Tamim, distinguished petroleum and mineral resources engineering scholar and Vice Chancellor of IUB; Mr. Muhammad Imrul Kabir, Director, Corporate Affairs, Chevron Bangladesh, AmCham members from the power and energy sector; and senior leadership from leading companies in the industry.    

The country’s capital market saw mixed movements on Wednesday as the Dhaka Stock Exchange (DSE) ended lower while the Chittagong Stock Exchange (CSE) posted gains. At DSE, the benchmark DSEX fell 21 points, while the Shariah-based DS30 and selected blue-chip index DS30 declined by 7 and 8 points respectively. Most companies saw their share prices drop, with 227 companies posting losses, 114 recording gains, and 53 remaining unchanged. In the block market, shares worth Tk 51 crore of 42 companies changed hands, with Paramount Textile PLC leading at Tk 20 crore. The market turnover rose to Tk 533 crore from Tk 458 crore in the previous session. Trust Islami Life Insurance Limited topped the gainers list with nearly 10% increase, while Familitex (BD) Limited was the biggest loser with more than 8% decline. Meanwhile, CSE's index CASPI rose 53 points, supported by price increases in the majority of listed companies. Out of the total, 84 companies saw their share prices rise, 68 fell and 26 remained unchanged. The total turnover stood at Tk 9 crore, down from Tk 15 crore the previous day. Bangas Limited led the gainers with a 10% rise, and Eastern Insurance Company Limited was the top loser, losing over 8%.