United News of Bangladesh

The October reading of the Bangladesh Purchasing Managers’ Index (PMI) gained 2.7 points from the previous month to post a faster expansion rate at 61.8. This latest PMI reading was attributed to a faster expansion rate for all the key sectors of agriculture, manufacturing, construction and services. “The latest PMI readings indicate that the overall Bangladesh economy continued to expand, primarily driven by favourable crop conditions and expectations of a good harvest in the agricultural sector,” said Dr M Masrur Reaz, Chairman and CEO, Policy Exchange Bangladesh.                                                                                        Other sectors of the economy also posted faster expansion rates, going into the final quarter of the year, with monthly growth in exports and inflation gradually waning, he said on Sunday (9th November 2025). Read more: Economic Affairs Committee okays import of crude oil Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka and Policy Exchange Bangladesh (PEB) released the Bangladesh Purchasing Managers’ Index (PMI) October report on Sunday. The PMI is a pioneering initiative that aims to offer timely and accurate insights into the country's economic health to help businesses, investors and policy makers make informed decisions. It was developed by MCCI and Policy Exchange, with support from the UK Government and technical support from Singapore Institute of Purchasing & Materials Management (SIPMM). The agriculture sector posted its 2nd month of expansion, and at a faster rate. The sector posted faster expansion readings for the indexes of new business, business activity, and input costs, and the employment index reverted to an expansion reading. The order, however, backlogs index posted a faster contraction rate. Read more: Govt laid foundation for promising new chapter in Bangladesh-US relations: Shafiqul Alam The manufacturing sector posted its 14th month of expansion, and at a faster rate. The sector posted expansion readings for the indexes of new orders, new exports, factory output, input purchases, finished goods, imports, input prices, employment, and supplier deliveries. The order backlogs index recorded a more rapid decline. The construction sector posted its 2nd month of expansion, and at a faster rate. The sector posted expansion readings for the indexes of new business, construction activity, employment, and input costs. The order backlogs index posted a slower contraction rate. The services sector posted its 13th month of expansion, and at a faster rate. The sector posted expansion readings for the indexes of new business, business activity, employment, and input costs. The order backlogs index reverted to an expansion reading after recording 2 months of contraction readings. In terms of the future business index, slower expansion rates were recorded for all key sectors of agriculture, manufacturing, construction and services. Read more: Economy must move beyond narrow wealth accumulation: Prof Yunus

Chief Adviser Prof Muhammad Yunus on Monday said they must move towards an economy that places human well-being, social justice and environmental stewardship above the narrow accumulation of wealth. "This is not a utopian ideal. It is a necessary evolution. And at the heart of this new economy lies social business," he said, adding that social business is not a niche concept, it is a fundamental principle that business can and must exist to make a difference, not just a profit. Prof Yunus made the remarks while delivering the keynote speech at UN high-level event on "Social Business, Youth and Technology" at UN Headquarters in New York. It began humbly, with a one-dollar loan but today it has grown into a global movement, he mentioned. "From healthcare and renewable energy to education and even sports social businesses are showing that it is possible to tackle the world’s most pressing challenges while remaining economically sustainable," Prof Yunus said. UNGA: Prof Yunus, political leaders in New York  He said they are living proof that another world is within reach—a world where commerce serves humanity, where growth includes everyone and where profit is measured not only in financial returns but in lives improved, communities strengthened and our planet healed. "Our current civilization is on a self-destructive path—one defined by endless extraction, consumption and accumulation. We are endangering the very planet that sustains us," he said. To change course, Prof Yunus said they must build a new civilization—one motivated not by greed but by a shared commitment to solve human and planetary challenges. In this new world, he said, wealth must be shared, not concentrated. "Power held in too few hands weakens the whole of society." And business must be redefined, not as a vehicle for personal profit, but as an engine for social good, Prof Yunus said. Bangladesh fully prepared for fair, peaceful election in February: Prof Yunus tells US "This is the promise of social business. And this is how we will truly achieve the Sustainable Development Goals," he said. But this new civilization will not be built by the same minds that created the old one, Prof Yunus said, adding that it will be designed and driven by young people—the architects of the future. "Unlike previous generations, shaped by outdated systems, today’s youth see what could be, not just what is. Their imagination is limitless. And as I often say: 'Where imagination leads, innovation follows.' If we can imagine it, it can happen. If we don’t, it never will," he said. Prof Yunus said, "That’s why we must encourage young people to channel their creativity into social business—where real, sustainable solutions to climate change, unemployment, poverty and inequality are born." At this pivotal moment, Prof Yunus, called on the youth of the world to lead, not tomorrow, but today. "Dream boldly, but act deliberately. Change doesn’t have to start big." Brink of a New Technological Era Prof Yunus said they stand at the brink of a new technological era—one defined by artificial intelligence, big data, renewable energy and other transformative innovations. These tools have the power to reshape industries, societies and the very fabric of human progress, he said. "But their promise is paired with profound responsibility. Will these technologies become a blessing for humanity—or a source of harm? The answer is not yet written," Prof Yunus said. He said it will be determined by the choices they make today and by the values they instill in tomorrow’s leaders—especially their youth. "It is they who must step forward and guide these tools toward the common good. When directed responsibly, technologies like AI, blockchain and the Internet of Things can dramatically accelerate our progress toward the Sustainable Development Goals," he said. Coupled with the principles of social business—where profit is reinvested into purpose—they can revolutionize sectors from digital health and education to renewable energy and sports, he said. Imagine AI-powered diagnostics reaching remote villages, blockchain ensuring transparency in aid distribution or IoT optimizing clean energy use in underserved communities, Prof Yunus said. "This is not science fiction—it is the future we can build. But we must also confront the real risks: privacy breaches, algorithmic bias, cybersecurity threats, and the potential to deepen inequality," he said, adding that technology is a tool—and like any tool, its impact depends on the hands that wield it. "That’s why we need more than technical innovation—we need ethical innovation. We need leaders who ask not only “Can we do it?” but “Should we do it?”. We need systems—like social business—that align technological advancement with social justice, equity, and environmental stewardship." The future of technology must be shaped not by ambition alone, but by conscience, Prof Yunus said. "Not by competition, but by collaboration. Not for the few, but for all. Let us ensure that this new technological era becomes an era of empathy, equity, and shared progress," he said. Prof Yunus speaks of a world of  "three zeros": Zero Net Carbon Emissions, Zero Wealth Concentration to End Poverty and Zero Unemployment by unleashing creativity in all.  "I also emphasise on the Zero Waste and have been a part of the UN Secretary General’s 'zero waste initiative'. This is not a dream. It is already becoming reality," he said. That’s why, Prof Yunus said, they are encouraging young people everywhere to form 3-Zero Clubs—spaces where individuals become 3-Zero people. A 3-Zero person commits to living sustainably, minimizing waste and embracing social entrepreneurship. "They strive to contribute nothing to global warming, nothing to wealth inequality, and nothing to unemployment," Prof Yunus said. As more join this movement, these clubs grow into 3-Zero families, 3-Zero villages, 3-Zero cities—and one day, a 3-Zero world. "It starts with a single step. But together, those steps can change the world. I have always believed this forum is more than a place for speeches—it is a place for inspiration," Prof Yunus said. "In these turbulent times, true transformation lies in our unity. If we join hands—harnessing the power of social business, the energy of youth and the potential of technology—we can untangle even the most complex global crises," he said. Architects of New Wave "Let us become the architects of a new wave—a world built on justice, sustainability and hope. A world where our collective dreams ignite a new dawn for all of humanity," he said. Today, more than ever, that future stands at a crossroads, Prof Yunus  said. "Wildfires of climate change scorch the earth. The chasm of inequality grows deeper. Conflicts rage and the struggle for justice and peace tests our very humanity. These crises are not isolated. They are intertwined—threads of a fragile tapestry, each pulling at the other, shaping the whole of our existence," he said. What they need urgently is renewed multilateral diplomacy, deeper international cooperation, and collective commitment to sustainable development, Prof Yunus said. Many countries, including Bangladesh, are preparing to graduate from LDC status amid severe challenges. For Bangladesh, this includes hosting 1.3 million forcibly displaced Rohingyas, managing repeated climate shocks, and navigating global economic turbulence. "In such a context, reducing UN budgets or shrinking official development assistance would be counterproductive. Instead, the world must redouble efforts to expand international support, provide technical assistance, and ensure a just transition for nations facing heightened vulnerability," he said. The persistent shadow of global conflict continues to threaten peace and stability worldwide. These are not isolated tragedies—they ripple across borders, disrupting economies, endangering food security and shattering human lives. "In the face of such interconnected crises, we cannot resort to old solutions. What we need now—urgently—is renewed multilateral diplomacy and deeper international cooperation," Prof Yunus said. "These conflicts do more than immediate harm; they also undermine our shared vision for a sustainable future," he said. As an advocate for the Sustainable Development Goals, Prof Yunus has long believed that these goals cannot be fully realized within our current global system—a system still dominated by the relentless pursuit of profit over people. "Under these conditions, the path to the SDGs can indeed appear bleak," he said. "But I am not here to dwell on the gloom. I am here to propose a shift—a transformation of the system itself," Prof Yunus mentioned.  

Chief Adviser Prof Muhammad Yunus has acknowledged the significant contributions of Bangladeshi expatriates in boosting the national economy through remittances, thanking them for helping the country recover strongly. Speaking at an interaction with members of the Bangladesh community in Malaysia on Tuesday evening, Prof Yunus highlighted the interim government's efforts to enhance services for expatriates. He listened to their concerns and assured them that the issues raised would be addressed. Expatriates’ Welfare and Overseas Employment Adviser Dr Asif Nazrul, Foreign Affairs Adviser Md Touhid Hossain also spoke at the event. Bangladesh High Commissioner to Malaysia Shameem Ahsan conducted the session. Prof Yunus invites Malaysian investors to tap growing opportunities in Bangladesh Prof Yunus also discussed opportunities for expatriates to participate in the upcoming election, hinting at a “new experience” for them in the voting process. Foreign Affairs Adviser Hossain reiterated the government's commitment to promptly addressing expatriate issues, urging workers to ensure they have proper documentation before arriving in Malaysia to avoid legal and administrative complications. “We can’t help you without proper documents,” he said, while recognising their vital role in sustaining Bangladesh’s economy through remittances. Dr Nazrul echoed the sentiments, expressing gratitude for the expatriates’ contributions and pledging continued government efforts to support them.

In its latest monthly economic update, the General Economics Division (GED) of the Bangladesh Planning Commission has projected cautious optimism for the country’s economic trajectory in FY2026, highlighting both the encouraging trends and persistent structural challenges. According to the GED’s assessment, the first month of FY2026 shows early signs of economic rebound, although growth projections remain modest due to ongoing political uncertainty, subdued investment and industrial activity, and global headwinds, including the recent imposition of reciprocal tariffs by the United States. Multilateral institutions have revised their forecasts downward for the current fiscal.  The World Bank projects growth between 3.3% and 4.1%, while the Asian Development Bank (ADB) estimates it at 3.9%.  A moderate rebound to 5.1%-5.3% is anticipated in FY2026. The report warns of continued low levels of foreign direct investment (FDI), driven by eroding investor confidence, a tight fiscal space due to poor revenue mobilisation, and limited public investment. Bangladesh economy falters; growth slows, factories shut, jobs lost A provisional National Board of Revenue (NBR) estimate indicates a revenue shortfall, compounded in June by temporary work stoppages over the proposed restructuring of the tax authority. GED underscores that remittance inflows, export performance, and manufacturing growth will be key to supporting GDP. It, however, flags a number of threats, including low reserves, changing global buyer preferences and inflationary pressures. Food inflation remains a key concern despite an overall easing trend. Rice prices, particularly medium and coarse varieties, surged in June, with rice alone contributing 50% to food inflation. The report cites rising input costs, post-harvest losses, transport costs, and speculative hoarding as possible reasons, calling for urgent supply chain scrutiny. The banking sector also continues to struggle with decelerating deposit and credit growth.  Private sector credit has remained below 8% for six straight months, weighed down by inflation, tight monetary policy, and reduced import financing. The GED recommends structural reforms, investment incentives, and economic policy reorientation to restore momentum and build resilience in the face of ongoing domestic and global uncertainties.

Bangladesh’s economy is under growing pressure as GDP growth slows, foreign investment declines and unemployment rises, raising concerns among economists and industry insiders that the economy could face long-term instability without urgent reforms. According to the latest World Bank report, GDP growth for the current fiscal year may drop to 3.3 percent, the lowest in two decades. At the same time, the Ministry of Finance reports that foreign investment fell by over 70 percent in the first six months of FY2024-25. The World Bank’s April publication ‘Bangladesh Development Update’ warns that by 2025, an additional 3 million people may fall into poverty, driven by weak investment and growing internal challenges. Dr Anu Muhammad, a former professor of economics at Jahangirnagar University, said public frustration is rising due to prolonged economic difficulties. “After the fall of the Awami League, many corrupt business groups and money launderers fled. That was a major opportunity to restructure the economy, but it was missed. The same pattern of economic management continues, and it has yielded no positive results,” he said. Industrial Police data shows nearly 100 factories in Gazipur, Narayanganj-Narsingdi and Savar-Dhamrai have shut down permanently, leaving more than 60,000 workers unemployed. Economy eyes gradual growth with steady recovery in key sectors: Finance Ministry Investigations reveal that many investors during the Awami League regime are now in jail, have gone into hiding or fled the country. Due to lack of funds and fewer purchase orders, these factories were forced to cease operations. “More than a hundred factory closures have rendered hundreds of thousands unemployed,” Dr Anu Muhammad added. “Many who fled after closing factories had enjoyed undue privileges during the previous government. While the beneficiaries should be held accountable, not ensuring alternatives for the workers shows poor judgement. This will have a direct impact on the economy.” Instead of focusing on increasing national capacity, the proposed national budget appears to raise dependence on imports. Ignoring domestic industries and relying on foreign imports will deepen the crisis, the economist observed. Cash flow continues to decline in factories still in operation, coupled with an energy crisis. Shortages in fuel supply relative to demand and limited bank financing are bringing uncertainty to the industrial sector. Ashraf Ahmed, Director of the Dhaka Chamber of Commerce and Industry (DCCI), said, “Running factories with imported LNG are becoming extremely difficult. Most factories are suffering due to fuel shortages. When production drops, the economy suffers directly. From 2012 to 2022, private sector credit flow was strong. Now that flow has weakened. Factory owners have no capital, production has stalled, workers are not getting paid, and the economy is spiralling into disorder.” He added, “Although law and order has improved somewhat, other sectors remain unstable. Many banks are now so weak they cannot provide funds to businesses. At the same time, borrowing at high interest rates of around 16 percent makes doing business highly risky.” Industry representatives said gas shortages have halved production in many factories. To address this, the Energy Division is planning to increase LNG imports. Yet, with no new gas fields discovered and growing reliance on imported LNG, the situation is worsening. Bangladesh’s failure to explore the potential of 26 offshore blocks in the Bay of Bengal has added to the problem. A senior Petrobangla official, requesting anonymity, said, “During the Awami League regime, international tenders were floated, but no company showed interest. The new government extended the bidding period, but still received no response. There is little hope of extracting energy from the Bay of Bengal anytime soon.” Towfiqul Islam Khan, Senior Research Fellow at the Centre for Policy Dialogue, said, “Without political stability, attracting foreign companies will remain difficult. With elections approaching, no company will commit to a new agreement without policy guarantees. The government should provide a clear election roadmap and reach an understanding with political parties.” Khan stressed that regardless of any constitutional or electoral reform, the government must address the pressing issue of 2.1 million people who lost jobs in the past 10 months – 1.8 million of whom are women. Govt now focused on laying strong foundation of economy: Finance Adviser Mohammad Helal Uddin, Executive Vice Chairman of the Microcredit Regulatory Authority, said the current problems with investment, banking and energy are the result of longstanding mismanagement during the previous government. He said those now interested in investing are proceeding cautiously. The direction of future investments will depend on the policies of the post-election government. According to him, the economic missteps of the Awami League era will continue to take a toll in the coming months.

With government offices, banks, ports, factories, private institutions and retail outlets all shut for the 10-day Eid-ul-Azha holiday, economists and business leaders say the country has entered a state of economic stagnation. A visit to several bustling wholesale and retail markets in the capital — typically alive with traders and buyers — reveals that normal trade and daily business activities are yet to resume. Kawran Bazar, one of the largest wholesale hubs in Dhaka, remains stagnant even days after the holiday.  Traders report that supplies have only just started to arrive, but operations are far from normal. “Supplies, from vegetables to other items, are only now beginning to come in. The city still has fewer people, and many warehouse workers are still on leave, so business is virtually at a standstill,” said Monota Gazi, a wholesale vegetable trader at Kawran Bazar. Holiday trap in Bangladesh: Businesses struggle as economic activity slows The same scenario is visible across major trading centres in Old Dhaka, Badda, Jatrabari and Sadarghat.  Transportation of goods is moving slowly, affecting supply chains and overall market management. “Mangoes, fish, vegetables – all types of goods are being transported sluggishly. It doesn’t seem like things will return to full pace before Sunday,” said Mokbul Hossain, a wholesale trader in Sadarghat. The situation is similar in foreign trade. Land ports at Banglabandha, Bhomra and Benapole are closed for 10 days, bringing cross-border trade to a halt. Though the Chattogram port remains open, cargo handling has significantly slowed down.  Port authorities report that most workers are on holiday, causing delays in unloading shipments even though pressure is lower due to factory closures. Industry owners and business associations argue that such extended Eid holidays are detrimental to the economy.  Following a nine-day closure for Eid-ul-Fitr earlier in the year, they now see Eid-ul-Azha’s extended holiday as another disruption to production. “Our economy is already under pressure. We had nine days off during Eid-ul-Fitr, and now 10 days for Eid-ul-Azha.  Every sector of the economy is closed. This is nothing but madness. Instead of shutting everything down for 10 days, one day off with normal operations resuming the next day would have made more sense,” said Taskeen Ahmed, President of the Dhaka Chamber of Commerce and Industry (DCCI). He added, “It’s not as though people return from a 10-day holiday and jump into work full of energy. It will take another week to shake off the festive mood. If businesses operate only 20 days in a month, the owners will suffer and so will the workers.” Commenting on the holiday length, Towfiqul Islam Khan, Senior Research Fellow at the Centre for Policy Dialogue (CPD), said, “A 10-day holiday is a big decision, and it doesn’t seem like the government consulted stakeholders beforehand. Without consultation, such decisions will have adverse impacts. Naturally, there is no way to avoid the partial economic fallout of such a long closure.” He suggested that factories should at least follow the labour laws while deciding on closures. Highlighting the issue from a global business perspective, Mohammad Helal Uddin, Executive Vice Chairman of the Microcredit Regulatory Authority, said, “Even during a long holiday, it was vital to keep some economic wings operational. For example, all banks are closed now. If banks or specific departments involved in import-export are shut for 10 days, trade will suffer. Select specialised banks could have remained open.” He pointed out that although people enjoyed travelling during the long holiday, there was no clear roadmap for keeping essential economic activities running with limited manpower.  He urged authorities to adopt a planned approach to holiday management in future to avoid unnecessary economic losses.    

Planning Adviser Wahiduddin Mahmud on Sunday said that the upcoming national budget (FY25-26) will focus on restoring economic stability, curbing inflation, ensuring discipline in budget management, and making public finance sustainable. “The main strategy of this budget is to avoid falling into a debt trap — whether local or foreign — and ensure that loan repayments and development or operational expenditures do not exert additional pressure on the economy,” he said. Wahiduddin made the remarks while briefing reporters after a meeting of the National Economic Council (NEC). He acknowledged that the government is trying to break free from a vicious cycle of poor fiscal management seen in the past. While revenue collection cannot be increased overnight, the government will work to contain expenditures and limit the budget deficit to within four percent of GDP. The planning adviser said that due to ongoing inflationary pressures, the interim government cannot immediately reduce subsidies across all sectors. However, he noted that the new budget will be a responsible one, with no populist expenditures aimed at short-term public appeasement that could lead to long-term liabilities. He also said that no new mega or long-term development projects have been included in the upcoming Annual Development Programme (ADP), with the exception of the Matarbari Deep Sea Port project funded by Japan. Despite some financial constraints, Dr. Wahiduddin added that the government is continuing to repay longstanding dues to development partners and foreign contractors. NEC approves Tk 230,000 crore ADP for FY 25-26 Regarding the implementation of the Revised Annual Development Programme (RADP) for the current fiscal year, he noted that progress has been slower. This is due to the interim government’s post-August 5 scrutiny of ongoing projects, which resulted in reduced allocations and efforts to prevent fund misuse. He criticised several mega projects such as Payra Port, Karnaphuli Tunnel, and the Bus Rapid Transit (BRT) system, saying these were launched during the previous Awami League government without proper long-term assessment. ADP Size and Sectoral Priorities According to Planning Commission officials, the size of the new ADP for FY26 stands at Tk 2,30,000 crore — an increase of Tk 14,000 crore or 6.48 percent over the revised ADP for FY25, which was slashed from the original Tk 2,65,000 crore to Tk 2,16,000 crore. The new ADP emphasises sustainable, environmentally-friendly development with goals that include higher economic growth, increased per capita income, poverty reduction, job creation, and progress toward the Sustainable Development Goals (SDGs). Priority has been given to sectors such as agriculture and agro-industries, education, health, ICT, transport, power and energy, and region-based balanced development. Among the sectors, transport and communication received the highest allocation with Tk 58,973.39 crore, followed by power and energy with Tk 32,392.26 crore (14.08%), education with Tk 28,557.43 crore (12.42%), housing and community facilities with Tk 22,776.40 crore (9.90%), and health with Tk 18,148.14 crore (7.89%). These five sectors account for 70 percent of the total allocation. Finance Adviser to discuss NBR reforms with officials Tuesday Top Allocated Ministries and Divisions The Local Government Division received the highest allocation among ministries and divisions with Tk 36,099 crore. It was followed by: Road Transport and Highways Division: Tk 32,329.57 crore Power Division: Tk 20,283.62 crore Secondary and Higher Education Division: Tk 13,625.03 crore Ministry of Science and Technology: Tk 12,154.53 crore Health Services Division: Tk 11,617.17 crore Ministry of Primary and Mass Education: Tk 11,398.16 crore Shipping Ministry: Tk 9,387.62 crore Water Resources Ministry: Tk 8,489.86 crore Ministry of Railways: Tk 7,714.99 crore Projects under New ADP The new ADP includes 1,171 projects, comprising: 993 investment projects 19 feasibility study projects 99 technical assistance projects 60 projects financed from the concerned organization’s own funds Additionally, 79 projects will be implemented under the Public-Private Partnership (PPP) model and 228 under the Bangladesh Climate Change Trust Fund. A total of 258 projects have been earmarked for completion during the fiscal year, including: 212 investment projects 11 feasibility studies 18 technical assistance projects 17 organisation-financed projects

Bangladesh’s economy is showing signs of recovery, with the latest forecast from the International Monetary Fund (IMF) projecting a significant upturn. In its World Economic Outlook released on Tuesday night (Washington time), the IMF projected a GDP growth of 3.8 percent for Bangladesh in the current fiscal year (2024-25). The outlook further anticipates an increase in growth to 6.5 percent in the following fiscal year (2025-26). IMF hints at approving 2 tranches from $4.7 billion loan for Bangladesh soon The report was unveiled on the second day of the World Bank-IMF Spring Meetings, currently taking place in Washington, USA. Alongside global trends, the IMF updated country-specific data in this outlook. It projects inflation in Bangladesh to remain at 10 percent. The country has been grappling with persistent inflationary pressure over the past two years. According to the Bangladesh Bureau of Statistics (BBS), inflation stood at 9.35 percent in March, with an annual average of 10.26 percent over the past year. The Awami League government initially targeted a GDP growth rate of 6.75 percent when it presented the budget for FY 2024-25 in June. But, the interim administration recently revised the target downward to 5.25 percent, citing ongoing financial challenges, business stagnation, and political instability following the change in government. Earlier this month, the Asian Development Bank (ADB) projected a GDP growth of 3.9 percent for Bangladesh this fiscal year—slightly higher than the IMF’s updated estimate. Globally, the IMF expects average GDP growth to be 2.8 percent, while the average for Asia is forecast to be 4.5 percent. A 15-member Bangladesh delegation, led by Finance Advisor Dr Salehuddin Ahmed, is participating in the Spring Meetings, which began on April 21 and will continue until April 26.  

Bangladesh's economic growth has slowed in recent months due to high interest rates, expensive energy supply and political uncertainty, according to trade body leaders and economists. They highlighted that costly funding and inadequate energy supply are hindering business expansion despite the country’s large workforce. Zakir Hossain Nayan, the Convener of the Anti-Discrimination Business Forum at the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), told UNB that the domestic business sector is struggling due to high interest rates and the rising exchange rate of the US dollar. “People have reduced their consumption due to high inflation within their income limitations. As a result, Bangladesh's internal trade suffered severely in July and August last year, though it is now slowly gaining pace,” he said. He explained that banks are facing a liquidity crisis, as the past government and their affiliated businesses misused banking policies to secure large loans. This has left over a dozen banks unable to make new investments, while others remain cautious about injecting fresh funds into businesses. Given these conditions, he said that business growth will remain weak in the second half of 2024. He, however, said that the situation is improving as the government has increased money flow in the banking sector, the dollar crisis has eased, and inflation is trending downward. He also mentioned that the export sector remains resilient despite challenges such as unrest in the garment sector, with export orders increasing by 10–15% in 2025. Second report of committee to reform NBR expected next month, focusing on automation Taskeen Ahmed, President of the Dhaka Chamber of Commerce & Industry (DCCI), said that GDP growth in the first quarter of the current fiscal year was only 1.8%, while the manufacturing sector grew by just 1.43%. He noted that Bangladesh’s economy continues to face various challenges, even as it prepares to graduate from the Least Developed Country (LDC) category in 2026. To address these challenges, he emphasised the need for skill development in the SME sector, long-term access to low-cost credit, free trade agreements to boost exports to the Middle East and South Asia, infrastructure development to attract foreign direct investment (FDI), and reforms in revenue and related policies. Ahmed also urged the government to implement policies to promote exports beyond the readymade garment sector, highlighting the potential of pharmaceuticals, leather goods, agro-processing, semiconductors, light engineering, and information technology. He stressed that a comprehensive 'Smooth Transition Strategy' (STS) is crucial, with a strong role for the private sector. Ensuring low-cost funds is essential to revive business growth, he added. Khandoker Rafiqul Islam, former President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told UNB that the garment sector has been able to meet export targets in recent months by operating at full capacity. But he warned that sustaining this trend will be difficult if business expansion is stifled by high costs and an unreliable energy supply. He pointed out that the domestic textile sector is struggling due to shortages in working capital and energy supply. 42,000 Bangladeshi expats seek voter registration abroad The latest Bangladesh Purchasing Managers’ Index (PMI) report revealed a 1.1-point decline in February, recording a slower expansion rate of 64.6. The report attributed this drop to weaker expansion in construction and services, although agriculture and manufacturing continued to grow at a faster rate. The PMI, developed by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange with support from the UK Government and technical assistance from the Singapore Institute of Purchasing and Materials Management (SIPMM), provides timely insights into Bangladesh’s economic health. According to the report: The agriculture sector recorded its fifth consecutive month of expansion, with faster growth in new business, business activity, input costs and order backlogs. Employment contraction slowed. The manufacturing sector posted its sixth consecutive month of expansion, with faster growth in new orders, factory output, input purchases, and supplier deliveries. But new exports, finished goods, imports and employment grew at a slower rate, while order backlogs contracted faster. The construction sector saw its third month of expansion but at a slower pace. New business and construction activity slowed, while input costs rose. Employment returned to growth, and order backlogs contracted at a slower rate. The services sector expanded for the fifth month but at a slower rate. Growth in new business, business activity and employment decelerated. The order backlogs index turned negative, while input costs increased. Only an elected government can drive real economic growth: Abdul Awal Mintoo “Bangladesh's PMI readings indicate sustained expansion for the fifth month, driven by continued export growth and a seasonal uptick in agriculture, while construction and services posted slower expansion,” said M Masrur Reaz, Chairman and CEO of Policy Exchange. He cautioned that business confidence remains weak due to sluggish demand, energy disruptions, and ongoing protests. A sustained recovery, he argued, will depend on improved law and order, political consensus on the election roadmap, and the swift implementation of key reforms.

Bangladesh and Kuwait on Sunday reaffirmed their commitment to strengthening diplomatic, trade and economic ties, with a focus on investment, energy, food security and migrant welfare. Newly appointed Ambassador of Kuwait to Bangladesh Ali Tunyan Abdul Wahab Hamadah met Chief Adviser Prof Muhammad Yunus at the State Guest House Jamuna and discussed ways to strengthen the ties. Welcoming the Ambassador, the Chief Adviser reaffirmed the strong historical ties between Bangladesh and Kuwait and encouraged greater collaboration in key sectors. “Kuwait and Bangladesh are long-standing friends. There are many investment opportunities here, and halal food can be a great sector to explore. The global market for halal food is huge. I encourage you to include young people in this initiative,” Prof Yunus said. The Chief Adviser invited Kuwaiti investors to explore opportunities in Bangladesh’s Special Economic Zones (SEZs) and the upcoming Bangladesh Investment Summit in Dhaka on 7-9 April. “Bring investors from Kuwait during the summit. It will be a big opportunity for both countries,” he said. India seeks friendly ties with Bangladesh: Rajnath Singh Ambassador Hamadah conveyed full support for Bangladesh’s Interim Government on behalf of Prime Minister Sheikh Ahmed Abdullah Al-Ahmad Al-Sabah and the people of Kuwait. "We are looking forward to working together," he said. Both sides discussed expanding crude oil imports from Kuwait to support Bangladesh’s growing energy demands. The Chief Adviser invited Kuwait to invest in a joint venture crude oil refinery in Bangladesh and urged the oil-rich Gulf nation to explore cooperation in renewable energy projects. The Chief Adviser stressed the importance of ensuring better working conditions for Bangladeshi workers in Kuwait, particularly female workers. He also acknowledged the strong defence collaboration between the two countries and praised the professionalism of Bangladeshi military personnel serving in Kuwait. They also reaffirmed their dedication to deepening economic and diplomatic ties.  “Our partnership is built on mutual respect and cooperation. We are committed to expanding collaboration in trade, energy, and beyond,” the Chief Adviser said.