AGP Executive Report

Investment Reform: Bangladesh plans a digital Single Window to process business approvals and licences within seven days, with automatic approval possible when agencies miss deadlines. Energy: Rooppur has installed automated control systems in both units; Unit 1’s system is supporting start-up operations. Bangladesh is also seeking stronger energy cooperation with Algeria and Saudi Arabia. Ports and Manufacturing: A $335.78 million Chinese loan will fund two container terminals and cargo yards at Mongla Port. Chinese garment maker Longteng plans to invest $17 million in Mongla EPZ. Economic Outlook: The IMF cut its FY27 growth forecast for Bangladesh to 3.2% and projected inflation at 10.9%, while the finance minister said the government still hopes to meet its 6.5% budget growth target. Supply Disruption: LPG dealers plan a nationwide sales shutdown on October 15–16, raising concerns for consumers and businesses reliant on the fuel.

Garment Investment: China’s Longteng Garment will invest $17 million in a Mongla EPZ factory, creating 3,005 jobs and producing six million garments a year for global brands. Mongla Port: Bangladesh signed a $335.78 million Chinese loan for two container terminals and cargo facilities, repayable over 20 years at 2% interest. Industrial Finance: Bangladesh Bank eased LC restrictions for Shinepukur Ceramics and Beximco LPG, helping them import raw materials and access working capital. Energy & Power: Bangladesh is discussing a fresh IMF loan to cushion energy costs, as gas and electricity shortages squeeze factories. Rooppur’s first unit has achieved criticality and will undergo tests before grid connection. Apparel Transition: Dutch officials explored clean energy and sustainable manufacturing with Bangladesh’s apparel sector, which faces rising costs, sourcing competition and uncertainty over post-LDC trade access. Port Operations: DP World has a 15-year deal to operate Chattogram’s New Mooring terminal, with upgrades aimed at improving cargo handling and easing delays.

Energy Security: Bangladesh is pursuing LNG and LPG cooperation with Algeria as supply pressures mount, while also seeking stronger energy ties with Saudi Arabia and Qatar. Dhaka has asked Canada to support energy, renewable power and climate-finance initiatives. Investment Drive: Japan’s Marubeni is exploring a larger Bangladesh presence, with the prime minister pitching investment in an AI data centre and a second KAFCO fertiliser plant. BEPZA has opened dedicated investor desks for China, South Korea and Japan; its zones recorded $8.41 billion in exports in FY2025-26. Financing: Bangladesh is in talks with the IMF for fresh support, citing economic uncertainty and higher energy costs linked to the Middle East conflict. Power and Ports: Rooppur’s first unit has begun nuclear fission, a step towards generation. DP World’s 15-year deal to operate Chattogram’s New Mooring Container Terminal is expected to expand port capacity.

Investment: Japan’s Marubeni is exploring expanded investment in Bangladesh’s IT, AI, fertiliser, energy and ship-recycling sectors, including upgrades at KAFCO. The push comes as net FDI fell 28% in the first half of 2026, with fresh equity inflows down 55%. Energy: Rooppur’s first unit has begun fission and is moving closer to supplying electricity. Bangladesh has also approved eight-hour battery storage for a 442MW solar project. Meanwhile, LPG consumers in major cities are paying up to Tk 2,500 for a 12kg cylinder, far above the official Tk 1,837 price. Telecom: BTRC proposed base prices of Tk 178 crore and Tk 214 crore per MHz for an 8.4MHz spectrum auction, which could improve mobile coverage and capacity. Trade and manufacturing: DP World’s 15-year deal to operate Chattogram port’s New Mooring Container Terminal could boost cargo handling, while Walton has partnered with a Kenyan firm to market its products and provide customer care.

Industrial Energy: Palmal Group and Omera Renewable Energy will install a 4.07 MWh battery system at a Palmal textile mill, storing rooftop solar power and reducing reliance on diesel backup. Investment: BEPZA has opened dedicated desks for investors from China, South Korea and Japan, while Ocean Aid Services is seeking foreign financing for power projects worth over $50 million. Garments: Polish retailer LPP now works with more than 350 Bangladeshi manufacturers, with annual contracts worth about $750 million. Power: Rooppur Unit 1 has clearance to begin its first nuclear reaction, with Rosatom saying grid connection is approaching. Ports: DP World’s 15-year deal to operate Chattogram’s New Mooring terminal is signed; the challenge now is to deliver verifiable gains in efficiency, service and public revenue. Transport: Biman has ordered 10 Airbus aircraft to expand its fleet.

Investment: BEPZA opened dedicated desks for investors from China, South Korea and Japan. Its zones signed 36 investment deals and exported $8.41 billion in FY26. Energy: OASL aims to connect foreign financiers with power and clean-energy projects worth more than $50 million. Walton also launched an integrated solar system for generation, storage and household use. Waste-to-fuel: The prime minister backed research to turn sewage, kitchen and farm waste into fuel. Researchers estimate a pilot plant would cost Tk100–120 crore; commercial potential still needs testing. Trade: Bangladesh will prioritise investment and economic ties during the prime minister’s Japan visit later this month. Industry: Steelmakers hope resumed public projects will revive demand after domestic consumption fell sharply. Exports: Business leaders want a national halal-industry policy to diversify exports beyond garments. Finance: The IMF may seek deadlines to address weak banks as Bangladesh pursues a new loan; BSEC plans to raise the direct-listing threshold for private firms to Tk1,000 crore. Logistics: DP World’s 15-year deal to operate Chattogram’s New Mooring terminal could reshape port operations, while the government is seeking further investment in free zones and inland depots.

Port Logistics: Bangladesh has signed a 15-year deal for DP World to operate Chattogram’s New Mooring Container Terminal. The port authority retains ownership, while the operator is expected to improve capacity and supply-chain efficiency. Energy Costs: Finance adviser Rashed Al Mahmud Titumir says the Middle East crisis added $4.12 billion to Bangladesh’s oil, LNG and fertiliser import bill from March to September; costs could rise by about $600 million a month if the crisis continues. Power Supply: Rosatom says Rooppur’s first unit will connect to the national grid on an experimental basis soon, as Bangladesh seeks to strengthen energy security. Garment Manufacturing: Beximco is seeking approval for a foreign-backed leasing plan to restart some shuttered factories, beginning with an export-focused unit that could reopen next April. Technology: The government aims to establish sovereign AI capabilities within 12 months, but turning the pledge into results will require clear responsibility and delivery plans.

Garment Safety: The International Accord has passed 300 signatories and covers more than 2,000 factories in Bangladesh and Pakistan, but Bangladeshi manufacturers are pushing to change its oversight and protocols. Port Operations: DP World has secured a 15-year concession to operate Chattogram’s New Mooring Container Terminal, with the government arguing the deal will improve efficiency and export competitiveness. Power Supply: Rosatom says Rooppur’s first unit could connect to the grid experimentally soon; separately, Bangladesh approved eight-hour battery storage for a 442MW solar project. Rural Investment: Two IFAD-backed projects worth $324 million aim to strengthen climate resilience, livelihoods and food systems, reaching 2.5 million people. Business Conditions: Private-sector activity fell to its lowest level since August 2024, while textile leaders cite gas and power shortages. The government is also directing banks to disburse Tk 5,000 crore from a small-business fund by November. Aviation: Biman Bangladesh signed a deal to buy 10 Airbus aircraft, a major fleet expansion.

Port & Logistics: Bangladesh signed a 15-year deal for DP World to operate Chattogram’s New Mooring Container Terminal; the port authority retains ownership, while workers protest the handover. The prime minister also sought DP World investment in free-trade zones and rail-linked depots. Energy: Rooppur Unit 1 won approval to begin its first controlled nuclear reaction, a key commissioning step before power generation. Small Businesses: Bangladesh Bank told lenders to disburse Tk 5,000 crore in low-cost CMSME loans by November; Tk 450 crore had been released in the first two weeks. Shipbuilding: The government plans policy and infrastructure support for shipbuilding and ship recycling, targeting export growth and greener yards. Renewables: AkijBashir became Bangladesh’s first RE100 member, pledging 100% renewable electricity by 2050; it says it already has about 90MW of solar capacity. Energy Costs: LPG shortages persist, with 12kg cylinders selling for Tk 2,300–2,500, well above the official Tk 1,837 price. Trade: Bangladesh and India discussed jute duties, land ports and other barriers as Bangladesh’s exports to India remain far below its imports.

Ports & Logistics: Bangladesh signed a 15-year deal for DP World to operate Chattogram Port’s New Mooring Container Terminal, with the state retaining ownership and DP World committing to modernisation investment. The Prime Minister also sought the operator’s investment in free trade zones and rail-based inland depots. Small Businesses: Bangladesh Bank has told lenders to disburse the full Tk 5,000 crore CMSME fund by November; about Tk 450 crore had been released in the first two weeks. Shipbuilding: The government is backing shipbuilding and green ship recycling to capture rising global demand, expand exports and address financing hurdles for shipyards. Energy: Türkiye has offered lower-cost LNG, fuel oil and floating regasification units as Bangladesh seeks affordable supplies; separately, Jamuna Group signed a deal for 34 MWp of rooftop solar. Digital Industry: Bangladesh plans to launch sovereign AI infrastructure within a year, with access for businesses, startups and universities. Prices: Inflation edged up to 8.34% in September, as food inflation also rose.

Renewable Energy: ECNEC approved a 442MW solar plant at Rampal, backed by Tk 2,498 crore and planned with eight-hour battery storage. The project will use land once earmarked for coal power and is expected to be completed by 2029. Aviation: Biman signed a firm order for 10 Airbus jets—four A350-900s and six A321neos—to modernise its fleet and expand international routes. Automotive: Toyota Tsusho is exploring vehicle manufacturing in Bangladesh, with potential for local jobs and technology transfer. Jobs and Growth: The World Bank says about two million people enter the labour market annually, while only 900,000 jobs are created; industrial employment has declined, and power outages affect 71% of firms. Garments: BKMEA urged faster renewable-energy adoption to protect the RMG sector’s competitiveness, while BGMEA pressed the World Bank to expand funding for factory water management. Trade: A 540-tonne methanol shipment from Assam to Dhaka has revived the Brahmaputra cargo route after seven decades. Fertiliser: Jamuna Fertiliser halted production again, just two days after restarting, due to a boiler leak.

Aviation: Biman signed a firm deal for 10 Airbus jets—four long-haul A350s and six A321neos—with deliveries expected from around 2033. Energy and Investment: ECNEC approved 13 projects worth Tk 16,207.55 crore, including a 442-MWp Rampal solar plant set to include eight-hour battery storage. Bangladesh also wants to raise annual trade with Indonesia from about $4 billion to over $10 billion by expanding garment, pharmaceutical and agricultural exports. Economic Outlook: GDP growth reached 3.68% in FY26, with industry growing 6.52% in the final quarter; a new gas discovery in Noakhali could add 7 million cubic feet a day to the national grid. Industry Pressures: Textile leaders say gas and power shortages are hitting mills, while the World Bank warns energy constraints and banking-sector problems are weighing on growth. Foreign Investment: Germany is seeking stronger trade and investment ties with Bangladesh, including cooperation in renewable energy and skills development.

Nuclear Power Watch: Bangladesh is preparing to switch on its first Rooppur nuclear plant, a $13bn, 2.4GW project, with Unit-1 targeted by year-end and Unit-2 within a year—promising relief from chronic power shortages even as concerns persist for communities nearby. Industrial Investment: Toyota Tsusho briefed PM Tarique Rahman on plans to set up a Toyota vehicle manufacturing plant in Bangladesh, highlighting jobs, industrial expansion, technology transfer and skilled manpower, while also discussing possible links to waste-to-energy and renewables. Energy & Cost Pressure: The World Bank warns Bangladesh’s growth is being dragged by energy bottlenecks, banking vulnerabilities and weak revenue, projecting GDP growth around 3.4% for FY26–FY27 and urging fast reforms in banking, domestic revenue and energy. Trade & Compliance: Commerce Minister Khandakar Abdul Muktadir says the government will fast-track a TSDF and simplify approvals to boost shipbuilding and recycling competitiveness, aiming to attract foreign buyers and reduce delays in Chattogram clearances. Tourism & Fisheries Ties: Bangladesh and the Maldives pushed closer cooperation on sustainable tuna fisheries and tourism at Dhaka’s Great Tuna Gala, with officials pointing to growing connectivity and market opportunities. Food Market Shock: Bangladesh’s LPG price rose again to Tk 1,837 for a 12-kg cylinder, while retailers report supply shortages and higher charging, adding to household cost pressure.

World Bank Update: Bangladesh’s growth outlook stays weak as energy shortages, banking vulnerabilities and low revenue collection drag momentum; the lender projects FY27 GDP growth at 3.4% (and FY26 also 3.4%), with a modest rise to 3.9% in FY28 only if energy constraints ease and reforms speed up. Energy & Industry: Textile mills warn gas and power shortages still disrupt production, while BTMA and opposition leaders push for policy support on incentives, taxes and LDC graduation impacts. Ship Recycling Push: Commerce Minister Khandakar Abdul Muktadir says the government will fast-track a TSDF and simplify approvals for shipbuilding and recycling to attract foreign buyers, with focus on Chattogram clearances and environmental compliance. Food Safety Enforcement: BFSA fined food businesses over Tk 1cr in September and filed 44 cases, citing hygiene lapses, missing labels and unapproved ingredients. Renewables Project: ECNEC approval is sought for a 442MWp Rampal solar plant worth Tk 2,498.08cr to expand clean power and cut fuel dependence. Trade & Connectivity: Bangladesh-India trade talks resume in New Delhi on Oct 8-9, aiming to cut tariff/non-tariff barriers and review anti-dumping duties on Bangladeshi jute. Apparel Sustainability: Dutch-backed “Circular Textiles Bangladesh” launches to advance traceability and decarbonization for EU-linked product requirements, involving BGMEA/BKMEA and tech partners.

RMG Export Outlook: Bangladesh’s apparel sector is being pushed to move beyond pure scale as buyers demand faster, more flexible response; FY25-26 garment exports fell 1.64% to $38.701bn, with EU down but US and UK up, while BATEXPO 2026 (Nov 18-19) is set to rebuild buyer confidence. Energy & Industry Pressure: The World Bank warns Bangladesh growth could stagnate at 3.4% in FY26-27 as energy shortages and a fragile banking sector hit factories, with LNG supply disruptions and load-shedding worsening costs. LPG Crisis in Dhaka: LPG cylinders are scarce and being sold above BERC-fixed rates, with reports of overcharging and retailers avoiding sales amid enforcement fears. Trade & Logistics Boost: A historic Brahmaputra river route is revived as a 540-tonne methanol cargo sails from Dibrugarh to Dhaka, testing inland-water freight potential for regular shipments. Investment & SEZ Expansion: Rancon Lubricants signed a 50-year land lease for 6.5 acres at Invest Bangladesh’s National SEZ in Mirsarai, planning a $19.65m unit and 250+ jobs. Policy & Compliance: Dhaka plans a regulatory framework for battery-run autorickshaws to curb uncontrolled operations while protecting drivers’ livelihoods. Finance Sector Update: IDRA begins clearing unpaid insurance claims, settling BDT263.6m for 7,641 policyholders in phase three.

RMG Trade & Market Access: BGMEA mourned banker-corporate leader M Ghaziul Haque, crediting his role in private banking and supply-chain support for apparel exports. BATEXPO 2026 returns Nov 18-19 in Dhaka to showcase Bangladesh’s transformed RMG sector to global buyers, while exporters report losing Russian buyers amid sanctions and payment/shipping disruptions. Telecom & Compliance: BTRC will relaunch NEIR on Jan 1, 2027 to block illegal handsets, in two phases. Energy & Industry Costs: LPG scarcity in Dhaka is driving covert overcharging despite fixed prices; separate coverage flags LNG price pressure hurting gas supply and industrial output. Govt also seeks ECNEC approval for a 442MWp Rampal solar project. Trade Negotiations: Bangladesh pushes FTA talks with Türkiye and a G2G LNG/fertiliser import plan with Algeria. Logistics & Inland Shipping: Assam’s Dibrugarh sent the first international cargo to Bangladesh since Independence—540 tonnes of methanol—reviving the Brahmaputra freight corridor. Policy & Social Impact: Banks cut CSR spending sharply; a Plan International report links climate shocks to higher child marriage and teen pregnancy risks.