AGP Executive Report

Japan Investment: Tokyo projected up to $6.35 billion in private investment in Bangladesh over five years, with 200,000 jobs expected. The two governments also agreed to upgrade the BIG-B initiative and deepen cooperation in energy, infrastructure and technology. Trade: Bangladesh and Malaysia began formal FTA talks, targeting a deal by 2027 to expand market access and investment as Bangladesh prepares for LDC graduation. Infrastructure: India’s L&T won contracts worth up to $1 billion for track, signalling and other systems on Dhaka Metro Line 1. Business Climate: Gas and power shortages weighed on investment, with first-quarter capital machinery LC openings down 3.6% year-on-year. Banking: A BIBM workshop focused on systemic risks and restoring depositors’ confidence, while Bangladesh Bank allowed UCB to offer an investor up to a 30% stake to strengthen its capital base. Consumer Markets: Imports of key Ramadan essentials, including edible oil, sugar and chickpeas, rose in the first four months of the fiscal year, improving the supply outlook.

Japan Investment: Tokyo expects up to $6.3 billion in private investment in Bangladesh over five years, potentially creating 200,000 jobs. The two governments also agreed to develop the Matarbari-Maheshkhali area as a regional logistics, energy and industrial hub. Trade: Bangladesh and Malaysia are set to begin talks on a free trade agreement, as Dhaka seeks broader export markets. Economic Pressures: A report warns that slow growth, a widening trade deficit and banking-sector weakness are converging. It cites growth of 3.4% in FY26 and a July trade gap of $2.09 billion. Infrastructure and Energy: India’s L&T won major contracts for track, electrical, signalling and telecom systems on Dhaka Metro Line 1. Australian firms are also pursuing clean-energy partnerships in Bangladesh, including in battery storage and solar. Skills Gap: The packaging industry says it needs 20,000–50,000 skilled workers and is recruiting from abroad to fill local shortages.

Japan Investment: Prime Minister Tarique Rahman is in Tokyo seeking Japanese investment in automobiles, semiconductors and renewable energy; Japan plans to mobilise $6.35 billion in private investment in Bangladesh over five years. At a Doha forum, Invest Bangladesh also pitched projects in solar power, LNG, ports and advanced manufacturing. Trade Access: Bangladesh and Malaysia begin free-trade talks in Dhaka, aiming for an agreement by 2027 to protect export access after LDC graduation. Financing Pressure: Foreign loan disbursements fell 42% to $662 million in July–September, while repayments rose. The government is seeking $1 billion in South Korean budget support to cushion energy shocks. Currency and Banking: Higher fuel-import payments nudged the dollar to Tk123.75 in the interbank market. Private-sector executives have been appointed to lead Janata and Agrani banks for the first time in two decades.

Japan Investment: Prime Minister Tarique Rahman used his Tokyo visit to seek Japanese investment in automobiles, semiconductors, renewable energy and other sectors. Japan is considering facilitating $6.35 billion in private investment over five years, while the two countries also look to expand trade under their Economic Partnership Agreement. Foreign Finance: Development partners disbursed $542 million in loans in July–September, down nearly 48% year on year, despite higher commitments of $1.27 billion. Export Diversification: New bonded-warehouse reforms aim to extend duty-free input access beyond garments and ease customs procedures for exporters. Bangladesh remains the EU’s leading denim supplier, but shipments fell nearly 6% in the first eight months of the year as competitors gained ground. Remittances: Earnings reached $10.72 billion since July, supporting a vital source of foreign exchange.

Trade: Bangladesh and Malaysia begin their first round of free-trade talks on October 27 as Dhaka seeks to protect market access after LDC graduation. Apparel exports to Japan reached $343.7 million in July–September, lifting Japan’s share to a four-year high of 3.25%. Banking: Bangladesh Bank plans to relax lending rules for eight banks to enable Tk 1,700 crore in fresh financing for debt-laden City Group, which owes lenders about Tk 26,000 crore. Public Investment: ADP spending hit a 17-year low in the first quarter, with ministries using just 3.89% of the annual allocation—a drag on public investment and growth. Remittances: Inflows reached $10.72 billion since July, up 11.9% year on year. Industry: The country’s only DAP fertiliser plant has been idle for nearly four months as approval delays hold up imports of key raw material.

Japan Investment: Prime Minister Tarique Rahman leaves for Japan on a four-day visit, with talks involving Japanese companies, JICA and a Bangladesh-Japan Economic Forum. Japan is expected to arrange $6.35 billion in private investment in Bangladesh. Cybersecurity: Bangladesh Bank’s website is back online after a three-day precautionary shutdown, but Janata Bank reported malicious activity on its site and was working to secure it. Energy Supply: The government approved six LNG cargoes from BP Singapore and QatarEnergy; a proposed purchase from Japan’s JERA Global Markets remains on hold pending legal vetting. Export Outlook: Bangladesh retained its position as the EU’s top denim supplier, though imports from the country declined year to date; exports rose 12.71% in August. Public Investment: ECNEC’s postponed meeting has delayed decisions on 15 proposed projects worth about Tk 9,000 crore. Gold Market: Local gold prices fell Tk 3,324 per bhori, bringing 22-carat gold to Tk 220,858.

Japan Investment: Tokyo is considering Bangladesh for vehicle assembly and parts manufacturing as Prime Minister Tarique Rahman visits, with Japan expected to mobilise $6.35 billion in private investment over five years. Exporters say Bangladesh must diversify beyond garments to make the most of the Japanese market. Capital Markets: BSEC has reopened direct listings, letting eligible companies trade existing shares without an IPO, while fresh capital remains a challenge in a market still shallow relative to the economy. Technology Exports: IT exports grew 8.68% to $684 million in FY26, but industry leaders warn AI could erode demand for traditional outsourcing. Garments: Bangladesh kept its lead in EU denim imports, with exports down 5.85% in January–August but rebounding 12.71% in August. Climate Finance: Bangladesh says implementing its 2026–35 climate plan will cost $116 billion, including $90 billion in international support, and is seeking affordable, predictable financing as it prepares for LDC graduation.

Japan Investment: Japan plans to mobilise $6.35 billion in private investment in Bangladesh over five years, as Dhaka and Tokyo prepare for talks and potential agreements. Border Trade: Benapole and Sonamasjid land ports resumed operations after Durga Puja closures; the week-long suspension at Benapole caused cargo backlogs and an estimated Tk160 crore in lost government revenue. Banking: Bangladesh Bank’s website remained offline for a third day amid a global cyber alert, but links with commercial banks and financial operations were unaffected. Apparel Exports: Bangladesh retained its lead in EU denim imports, with shipments up 12.7% in August, though exports for January–August were down 5.9% year on year as overall EU imports fell. Energy and Investment: FICCI called for faster domestic gas exploration, renewable energy investment and energy-sector reforms, citing reliable, affordable power as essential to industrial competitiveness and job creation.

Cybersecurity: Bangladesh Bank kept its website offline after a global security alert, saying links with commercial banks remained unaffected while its IT team worked on safeguards. Trade: Bangladesh’s annual trade with Pakistan is about $1 billion, well below its “several billion” potential, the high commissioner said, pointing to barriers and weak connectivity as obstacles. Japan Investment: Ahead of Prime Minister Tarique Rahman’s October 26–29 visit, Japan is expected to arrange $6.35 billion in private investment over five years; the sides are also preparing cooperation agreements in areas including trade, skills and agriculture. Energy and Exports: Gas shortages have disrupted factories, with some garment suppliers reporting reduced production and cancelled or cut orders. Bangladesh’s merchandise exports reached $48 billion in FY2025–26, slightly below the previous year, as garments remained about 81% of the total.

Japan Investment: Tokyo is expected to mobilise $6.35 billion in private investment in Bangladesh over five years, targeting manufacturing and energy. The plan may feature in talks during Prime Minister Tarique Rahman’s Japan visit, alongside efforts to expand trade and market access. Tax Reform: The government plans to value property at market prices rather than minimum mouza rates, aiming to curb tax evasion and hidden wealth. Business Climate: Bangladesh’s foreign reserves have reached $31.5 billion, enough to cover more than five months of imports; the government is also considering easier capital repatriation to attract investors. Energy and Trade: US LNG supplier Excelerate is set to resume deliveries next week after a seven-month halt, while Bangladesh and Algeria are exploring cooperation in energy, agriculture and textiles. Exporters are also pressing the government for practical solutions to sector challenges.

Cybersecurity: Bangladesh Bank took its website offline as a precaution after a global alert over flaws in widely used PHP software; internet and mobile banking remained operational. Energy and Trade: Bangladesh and Algeria discussed expanding cooperation in energy, agriculture, fertiliser and textiles. A recent hydrocarbon agreement could open the way for LNG and LPG imports, refinery projects and technical training. Foreign Reserves: Usable reserves rose to $31.5 billion, enough to cover more than five months of imports at the recent pace. Investment and Infrastructure: Prime Minister Tarique Rahman inspected Mongla Port and a proposed Bagerhat economic zone, raising hopes of investment and infrastructure upgrades. Export Pressure: Vegetable exports fell nearly 7% year-on-year in July-September as freight costs and food-safety concerns weighed on shipments; flight disruptions to Saudi Arabia threaten further setbacks. Investor Confidence: The government is moving to ease capital repatriation, aiming to encourage investment.

Investor Confidence: The government proposes a 30-day deadline for processing profit-repatriation applications and faster transfers for foreign investors. Some share-sale proceeds could be repatriated without prior Bangladesh Bank approval. Handset Market: BTRC plans to relaunch NEIR on January 1, 2027, targeting Tk2,000 crore in annual tax losses from illegal handsets. Port Infrastructure: Payra has absorbed about Tk16,000 crore in investment, but silted channels still bar large vessels; a Tk4,662 crore dredging plan is awaiting review. Japan Ties: PM Tarique Rahman’s October 26–29 visit is expected to advance trade and investment ties, with Bangladesh-Japan trade already above $3.3 billion, driven by garment demand. Retail Demand: Dhaka clothing shops report weak Puja-season sales despite discounts of up to 70%, with one retailer saying sales are about a third of normal levels.

Solar Push: A new ordinance opens rooftop, water-body, tea-garden and other small solar projects to private investors, with net metering and financing options. The government aims to add 3,000–4,000MW before next summer to reduce reliance on imported fuel. Japan Trade: Bangladesh-Japan trade topped $3.3 billion in FY25, led by garment demand. Business leaders want Prime Minister Tarique Rahman’s Oct. 26–29 Tokyo visit to secure investment and speed up the economic partnership agreement. Jobs and Investment: The World Bank warns South Asia must create jobs for tens of millions of young workers as private-sector hiring lags. In Bangladesh, private credit growth was 4.8% in August and investment remains weak, prompting calls for structural reforms. Banking: The government has eased CEO appointment rules at six state-owned banks, allowing the two-year senior-role requirement to be waived in exceptional cases. Exports: The commerce ministry suspended the Betel Leaf Exporters’ Association over alleged extortion and shipment delays; Bangladesh earns $32.5 million from betel leaf exports. Foreign Spending: Bangladeshis spent Tk987 crore on cards abroad in August, nearly four times the Tk249 crore foreign visitors spent in Bangladesh.

Food Business Rules: From November 1, food businesses — from street stalls to large processors — must register or obtain licences under new food-safety regulations. Trade & Industry: A Chinese zipper manufacturer’s Mirsharai facility has begun commercial operations, while BRAC Bank has launched an integrated digital trade-finance platform for corporate clients. Economic Outlook: Two years after Sheikh Hasina’s ouster, foreign reserves have recovered, remittances have risen and inflation has eased, but growth remains weak and private-sector credit is slowing; economists are urging faster structural reforms. Garments: Keya Group has laid off 739 workers at four factories, while garment factories face rising costs from extreme heat. Energy: Bangladesh has extended the deadline for potential LNG suppliers to apply by three weeks and is discussing energy cooperation with Algeria. Payments: Bangladeshis spent Tk987 crore abroad on bank cards in August; card issuance has nearly doubled in five years.

Economic Reform: Economists say Bangladesh needs urgent structural changes, stronger tax collection and better-targeted subsidies; its tax-to-GDP ratio remains around 8–9%. New Investment: Chinese zipper maker SBS Zipper has begun production in Mirsharai after investing $15.51 million, with plans to employ more than 2,000 people at full capacity. Garment Industry: Extreme heat is raising factory costs and harming workers, while renewed wage protests reflect mounting living expenses. Keya Group has laid off 739 staff at four Gazipur factories, following 627 job cuts in September. Banking and Payments: Card numbers nearly doubled to 5.29 crore in five years, with transactions reaching Tk49,770 crore, Bangladesh Bank reports. Islamic banks’ workforce fell 6% year-on-year to 44,782 amid automation and management problems. Trade Finance: Invest Bangladesh says stronger Chinese bank ties could improve access to trade finance and investment support; BRAC Bank has also launched digital trade services for corporate clients.

Factory Jobs: Keya Group has laid off 739 workers and officers at four Gazipur factories, citing banking problems, unpaid gas bills and excess staffing; 627 employees were laid off last month. Foreign Exchange: Bangladesh Bank sold $20 million to commercial banks at Tk123.65 per dollar to ease pressure on the taka, its second such sale this fiscal year. Energy Costs: Households are reportedly paying up to 36% above official prices for LPG as shortages persist and suppliers, distributors and the government dispute the cause. Excelerate Energy is also set to halt LNG supplies to Bangladesh for seven months. Green Investment: Confidence Power plans to invest Tk4,159 crore in 400MW of solar projects by 2028 and raise Tk400 crore through an IPO. Trade and Investment: Prime Minister Tarique Rahman is due to meet Japan’s Sanae Takaichi in Tokyo on October 27, with both sides discussing agreements to deepen economic ties and attract investment.