AGP Executive Report

Energy Subsidy Shock: Finance Minister Amir Khosru told parliament Bangladesh may need an extra Tk 426bn in subsidies by June 2026 for oil, gas, electricity and fertiliser, driven by Middle East-linked fuel and LNG price spikes and higher import/production costs. Japan Financing: Japan confirmed a $312m (about Tk 3,800 crore) ODA loan for economic resilience and stable energy supply, with ERD and JICA signing notes and a loan agreement. Banking Trust Push: The finance minister said banking stability steps include merging five troubled Islamic banks into Sommilito Islami Bank, and expanding deposit protection under the Deposit Protection Act 2026 (coverage raised to Tk 200,000). Stock Market Penalties: BSEC fines of Tk 14.96bn were announced in parliament over alleged stock market irregularities and manipulation. ECNEC Approvals: ECNEC cleared 8 projects worth Tk 2,266.41 crore, spanning irrigation, highways, health and education. Agri-Tech & Data: CU inaugurated the country’s first Satellite Ocean Observation and Data Innovation Center, aimed at improving fisheries, shipping and marine research. Startup Funding: ICT minister said Startup Bangladesh has invested Tk 109 crore in 36 approved tech startups, with plans to scale funds to Tk 1,000 crore. Digital Telecom Move: Veon proposed a strategic combination involving Teletalk and an interest in acquiring Nagad.

RMG Labour Unrest: Garment workers blocked Dhaka roads for hours over sudden layoffs and unpaid wages, paralysing Mohakhali–Rampura traffic and stranding commuters. Bangladesh Bank Support: BB launched Tk 50,000cr revolving refinance for CMSMEs (max 9% lending rate) to ease working-capital stress and sustain production/jobs. Export Pressure & Policy Response: Commerce minister warned LDC graduation could cost $17.5b in exports from losing preferential access, while budget talks include halving advance income tax on export cash incentives to 5%. Trade & Growth Signals: Trade deficit widened to $22.21b in July–April as imports outpaced exports; PMI rose to 62.8 in May, with manufacturing and services expanding faster. Energy & Cost of Living: Renewables face “fiscal discrimination” as fossil fuels dominate budgets; meanwhile, electricity disruption claims continue despite official denials. Industry Outreach: BCCCI leads a 23-member Bangladesh delegation to China’s Kunming expo to push textiles, pharma, leather and agro exports. Labour Mobility: Bangladesh and Mauritius agreed to fast-track an MoU to reopen the Bangladeshi labour market. Research & Skills: BUET inaugurated a climate-health heat disparity project funded by Wellcome Trust; IUB topped private universities in Research.com’s Bangladesh ranking.

Bangladesh Bank Financing Push: BB launched Tk 5,000cr revolving refinance for CMSMEs (banks lend up to 9%) and Tk 1,000cr revolving refinance for green industries/factory buildings (PFIs refinance at 2%, lending capped at 5%), while also rolling out a Tk 10,000cr revolving refinance for agriculture and rural jobs to boost food security. Food & Agriculture Efficiency: State minister said Bangladesh wastes about 3.5mn tonnes of food yearly, citing UNEP’s Food Waste Index, while PKSF and CIMMYT discussed cooperation on climate-resilient crops, post-harvest loss reduction and farm mechanisation. Trade & Export Moves: Commerce minister said trade deficit widened to $24.16bn in FY25 and warned LDC graduation could risk $17.5bn in exports; meanwhile, leather policy support includes inter-bond transfer and a central bonded warehouse, and jute/agri export incentives expand beyond RMG. Halal Economy Linkages: Indonesia’s envoy urged Bangladesh firms to tap halal opportunities in processed food, fashion, pharma, healthcare, medical devices and digital tech, with a push to join D-8 Halal Expo 2026. Market & Industry Signals: DSE snapped a 10-day winning streak on profit-taking ahead of the budget; engineering exports rose 20% (July–May FY25-26) with electrical/electronics leading. Compliance & Operations: BSTI mobile courts fined fuel stations for dispensing irregularities; NASSA garment workers blocked Mohakhali road over unpaid wages.

Energy Security & Policy: A JS special committee submitted a 12-point plan to fix Bangladesh’s energy crisis, urging at least three months’ strategic fuel-oil reserves, diversified import sources, full automation and digital monitoring of the fuel-supply chain, tighter anti-smuggling rules, and faster work on key projects like the Dhaka–Chattogram pipeline and Eastern Refinery expansion. Budget Signals for Industry: The upcoming FY27 budget is set to include tax breaks for renewables, edible-oil production and SMEs, with long tax exemptions for solar investors and incentives for EVs. Hydrocarbon Push: Govt plans its first onshore oil-and-gas bidding round in 28 years, with Petrobangla drafting a new production-sharing contract to reverse declining gas output. Capital Market Overhaul: DSE turnover hit a near-2-year high as investors bet on BSEC reforms; the new BSEC chief Masud Khan pledged full digitisation and faster IPO processing. Credit & Inflation Pressure: Private sector credit growth stayed flat at 4.75% in April, while inflation rose to 9.4% in May, adding strain to business activity. Export Finance: Bangladesh Bank launched a Tk 30b refinance scheme to diversify exports beyond RMG, targeting priority sectors with low refinancing rates. Aviation & Tourism Stakeholders: Industry groups urged FY27 policy support, including jet fuel and leasing tax relief, to cut costs and boost demand. Food Safety Enforcement: BSTI-led drives fined two Boalkhali businesses Tk 1 lakh for selling expired, unhygienic products without proper licences.

Energy Security Push: A parliamentary special committee urged Bangladesh to expand strategic fuel reserves to at least three months, diversify import sources, and fully automate fuel supply with digital monitoring, alongside tougher anti-hoarding and anti-smuggling enforcement. Gas & LNG Roadmap: The energy minister outlined plans for 58 gas wells, offshore exploration, a floating and land LNG terminal in Maheshkhali, plus new transmission pipeline projects and targets to cut system losses. Power Demand Reality Check: Peak summer and irrigation demand is around 18,000MW; officials say there’s no overall shortage, but temporary disruptions persist due to primary fuel limits, grid constraints, maintenance and weather. Aviation Cost Relief: BERC cut Jet A-1 for domestic flights to Tk150.21/litre (down Tk15.67) and international rates to $0.9808/litre, easing airline operating costs. Trade Finance Upgrade: Mutual Trust Bank launched “MTB Trade X,” an in-house digital portal to streamline and track trade transaction requests end-to-end. Market & Macro Signals: DSE extended its winning streak to 10 sessions; inflation hit 9.42% in May. Export Diversification Funding: Bangladesh Bank rolled out a Tk3,000cr refinance scheme to support non-RMG exports and reduce product concentration risk. Urban Governance: DSCC held a public hearing on accountable, participatory city services, including waste, roads, waterlogging and trade licenses.

Energy Governance: Govt vows action against alleged power/energy-sector oligarchs and says lifeline and marginal electricity tariffs were reset to shield about 65% of consumers from hikes. Power Market Economics: Capacity payments and rental charges are projected to rise to Tk 52,608 crore in FY27, raising pressure for possible tariff increases as subsidy allocation stays near Tk 37,000 crore. Budget & Industry Policy: Officials discuss a people-friendly Budget 2026-27 and a new economic model targeting a $1tn economy by 2034, alongside a Tk 60,000 crore restructuring package to revive closed industries. Trade & Exports: RMG exports to major markets fell in July-May, while fruit exports hit a record $123m in FY26 on surging demand from expatriate Bangladeshis. Manufacturing & Compliance: Leather exporters blame long delays in a fully functional CETP for stagnant exports. Industrial Expansion: BSCIC plans a new industrial estate in Pabna, with plot and estate infrastructure issues to be reviewed. Denim Push: The 20th Bangladesh Denim Expo starts June 10 in Dhaka with 50+ exhibitors. Agro-Value & Jobs: Calls grow to boost agro-industrial value-addition and tech/innovation for agro-industry growth. Digital Risks: Info minister urges an e-Safety plan to tackle fake news and digital threats as AI adoption accelerates. Logistics & Safety: A probe body was formed after a HSIA cargo village fire; separate enforcement fined transport operators in Sirajganj for overcharging. Health & Tech: BAEC held a meeting on cyclotron-based PET radiopharma demand; experts call for dedicated budget for hypertension drug access. Green Finance: Civil society pushes a Tk 25,000 crore revolving green finance facility and near-zero tax on renewable energy equipment.

RMG Trade: Bangladesh’s ready-made garment exports fell 3.41% to $35.31bn in July–May FY25-26, with EU still the biggest buyer (49.15% share) but down 4.88% and the US nearly flat (-0.04%); non-traditional market shipments also slipped 5.95% to $5.68bn. Labour & Factories: Al-Muslim Group in Savar laid off 1,868 workers from seven factories, triggering protests over alleged Labour Act violations and unpaid dues. Port Policy: Conflicting shipping ministry letters have revived debate over Chattogram Port’s New Mooring Container Terminal (NCT) lease to DP World, though the shipping secretary says negotiations are ongoing. Health & Cities: DSCC launched a dengue crash program after a survey flagged 63 of 75 wards at risk; meanwhile, the health minister warned of action against Ad-Din Hospital if its show-cause reply on six newborn deaths is unsatisfactory. Standards & Consumer Safety: Industries minister urged BSTI to strengthen metrology and testing to protect consumer rights and improve trust in locally made products. Transport & Infrastructure: Jamuna Bridge saw 40,580 vehicles cross in 24 hours with Tk 3.14cr toll collected; MRT-6 extended night services by 20 minutes from tomorrow. Agro-Industry: Meherpur mango harvest is ramping up toward a 40,000 MT target; Dinajpur papad makers seek government support to reach global markets. Energy/Industry Costs: CNG station owners demanded a commission hike from Tk 8 to Tk 13.96 per cubic metre, citing rising electricity and operating costs. Diplomacy & Regional Links: Bangladesh and Türkiye agreed to form minister-level defence/foreign affairs committees and hold annual 2+2 talks; BIMSTEC SG said the bloc is set to strengthen regional cooperation.

Energy & Cost of Living: Thousands in Dhaka rallied against repeated electricity and fuel price hikes, with protesters saying the burden is becoming “unbearable” for working people. Power Sector Policy: Bangladesh Energy Regulatory Commission (BERC) moves around tariff changes, including rollback/adjustments for lifeline and low-use consumers, while opposition and parties continue to demand withdrawal of hikes. Industry Infrastructure: Industries minister Khandaker Abdul Muktadir said a new BSCIC industrial estate will be built in Pabna soon, with road widening, boundary walls and drainage upgrades in existing estates and a review of plot pricing/fees. Trade & Manufacturing: Apparel export data shows garment exports slipping to $35.3bn in July–May, with knitwear and woven segments both easing. Food & Supply Chain Tech: TCB is proposing an AI-driven system to monitor prices and supply of essentials and connect farmers directly to buyers to curb hoarding and manipulation. Digital Security: A call for a national SMS security framework to curb rising fraud via fake messages. Logistics Safety: A HSIA cargo village fire was brought under control with no casualties reported. Transport & Mobility: Akij Venture Group launched two electric vehicles (BAW M8 and BAW E7 Pro), pushing clean mobility. International Business: Uber debuted in Nepal, expanding ride-hailing with Uber Bike plus car options and plans beyond rides.

Bridge & Transport: Jamuna Bridge authorities collected about Tk 29.76 crore toll from 3.96 lakh vehicles during Eid travel in 11 days, with peak traffic two days before Eid. Safety Probe: The Ministry of Shipping formed an investigation committee after a bus fell into the Padma River at Daulatdia ferry ghat; the panel will submit findings within seven working days. Agri Trade: Rajshahi is eyeing around Tk 56 crore in litchi trade as the premium Bombay variety draws strong demand nationwide. Bangladesh–Turkey Ties: Turkish FM Hakan Fidan said both sides are exploring ways to lift bilateral trade from $1.3bn to $2bn, alongside MoUs on cultural heritage and renewed focus on Rohingya solutions. Industry Finance: Bangladesh Bank launched a Tk 20,000 crore revolving pre-finance scheme to restart closed industrial and service enterprises, prioritising export-oriented units. Power/Cost Context: Multiple reports highlight ongoing pressure from energy and tariff changes, with attention on impacts on consumers and key sectors like textiles. Digital/AI Regulation: India proposes tighter disclosure rules for AI-generated content, aiming to improve transparency and curb misinformation. World Environment Day: Coverage ties climate action to resource use, including warnings about AI’s growing water and energy footprint.

Capital Market Overhaul: Masud Khan took charge as the new BSEC chairman, promising real-time action against manipulation, scrapping the floor price regime, and shifting the market toward fair, transparent price discovery to rebuild investor trust. Power Tariff Relief: After appeals, BERC restored earlier electricity rates for lifeline and marginal consumers, while the power division asked for reconsideration of the tariff for low-income households. Industrial Revival Financing: Bangladesh Bank launched a Tk 20,000 crore pre-financing scheme at 7% to revive closed or underused large industries and service sectors, with a Tk 200 crore cap per group. Closed Factory Roadshows: The government will hold investment roadshows to reopen closed and unprofitable state-owned factories, seeking both local and foreign capital. Semiconductor Push: BSIA kicked off a US roadshow (June 5-13) under Silicon River and BRAINGAIN to connect Bangladeshi tech talent with global players. Skills & Compliance: Bangladesh’s Technical Education Board issued show-cause notices to 147 diploma institutes for failing to enroll students. Retail & Business Recognition: Apex Footwear won three Retail Asia Awards (AI Initiative, Footwear Retailer, Sustainability). Environment Day Angle: World Environment Day coverage highlighted how recycling inputs are entering car manufacturing, alongside broader calls for real climate action beyond one-day campaigns.

Power Tariffs: Bangladesh’s power regulator BERC withdrew part of a tariff hike, keeping lifeline users (up to 50 units) at Tk 4.63 and setting Tk 5.26 for up to 75 units, after earlier increases sparked backlash. Consumer Shielding: The Power Division asked BERC to review the new rates for marginal and low-income households, saying the lifeline proposal from BPDB wasn’t reflected. Industry Push: The government plans roadshows to attract local and foreign investment into closed and loss-making state-owned factories, with PM Tarique Rahman directing preparations within June. Capital Market Reform: Masud Khan was appointed BSEC chairman, saying the commission will reassess quarterly reporting rules and tighten action against market manipulation. Energy Investment Drive: The energy minister sought foreign investment in LNG terminals, offshore bidding rounds, a second oil refinery and renewables at the Baku Energy Forum. Governance & Accountability: Experts warned Bangladesh’s “polluter pays” principle is still mostly on paper, with regulators recovering only 47.52% of compensation imposed over 16 years. Tech & Skills Link: BSIA announced a multi-city US roadshow (June 5–13) to connect Bangladesh’s semiconductor ecosystem with global players. Health Watch: DSCC said 63 wards are at dengue risk, with 27 in the highest-risk category. Agri Prices: Rajshahi mango traders reported weak demand after Eid-ul-Azha, pushing some varieties’ prices below expectations. Trade Pressure: Bangladesh’s textile sector faces added strain as global tariff moves and forced-labour related US proposals loom over sourcing.

Energy & Industry Costs: Bangladesh raised electricity tariffs across the board from June 1, with BERC lifting bulk power to Tk 8.39 per unit and retail to Tk 10.63 (up Tk 1.39 and Tk 1.52 respectively), while subsidy needs remain heavy. Policy & Business Climate: Finance Minister Amir Khosru said the government will push deregulation and ease of doing business, including port management reforms and support for the creative economy. Exports & Trade: Export earnings rebounded in May, rising 9.80% month-on-month to $4.40bn, led by RMG; meanwhile, exporters said they see no impact from a proposed 10% US duty. IMF Talks: Bangladesh formally requested a new IMF lending arrangement and plans to move beyond the current $5.5bn program, seeking a more realistic reform timeline. Agri-Entrepreneurship: PKSF signed a $70m IFAD-backed “GREEN” project (2026-2031) to fund climate-resilient agriculture, eco-enterprises and nutrition for about 260,000 people. Finance for MSMEs: NCC Bank and ONE Bank signed Bangladesh Bank deals to refinance and expand credit for cottage, micro, small and medium enterprises. Investment & LNG: Cabinet approved purchases of three LNG cargoes to meet rising demand, and Mitsui met the PM to discuss investment in food, agriculture, energy and ICT. Digital & Security: A report highlights how anonymous SIMs are fueling fraud and digital crime. Labour Rights: Bangladesh exited the world’s worst-workers list after labor reforms, though protections remain in the lowest category.

Exports & RMG: Bangladesh’s export earnings slipped again in May, falling 7.07% year-on-year to $4.40bn after a brief April rebound, with ready-made garment exports down 8.29% to $3.59bn as Eid-ul-Azha disruptions hit factory output and shipments. Power Costs: The Bangladesh Energy Regulatory Commission raised retail electricity tariffs by Tk 1.52 per kWh (to Tk 10.63) and bulk tariffs to Tk 8.39, while CAB warned the hikes will fuel inflation and raise production costs for industries and agriculture. Energy Security & Fuel Imports: Bangladesh is set to buy five LNG cargoes via cabinet-approved procurement, and finance minister talks with the US focused on gas exploration and fuel import cooperation amid West Asia uncertainty. Climate-Resilient Infrastructure: CCGP approved Tk 423.4cr for 53 primary schools-cum-flood shelters under the World Bank-funded RIVER project, and the DND embankment drainage work is to be handed over to city corporations soon. SME Financing: NCC Bank signed agreements with Bangladesh Bank to refinance CMSME lending under Tk 3,000cr cluster finance and Tk 1,500cr FSFDMSME schemes at 7% interest. Capital Markets: Dhaka Stock Exchange turnover hit a nine-month high as stocks extended their rally for multiple sessions post-Eid, with engineering, cement and pharma leading gains. Agribusiness & Nutrition: A GREEN project fund deal for US$70m was signed to support climate-resilient agriculture, eco-friendly entrepreneurship and nutrition through 2031.

Power Tariffs & Energy Costs: Bangladesh Energy Regulatory Commission (BERC) is set to announce wholesale, transmission and retail electricity tariffs today after a two-day hearing on proposed hikes, as critics warn consumers already carry heavy capacity-charge burdens. Banking Stress: Classified loans and non-performing loans keep climbing, with March 2026 NPLs and wider classified assets hitting record levels and tightening bank credit. Agri Credit Push: Bangladesh Bank directed banks to prioritize marginal and landless farmers with “Farmer Smart Cards” and rain-hit farmers for low-interest refinancing, including opening Tk 10 accounts and faster loan processing. Capital Market Mood: Dhaka Stock Exchange extended its post-Eid rally for a seventh session; DSEX closed higher and turnover crossed Tk 10bn. LDC Graduation Relief: UN Committee for Development Policy backed Bangladesh’s request to extend LDC graduation preparatory period until Nov 24, 2029, urging key domestic reforms. LPG Price Cut: BERC reduced privately supplied LPG prices for June, cutting the 12kg cylinder by Tk 55 to Tk 1,885. SME Financing: ONE Bank signed agreements with Bangladesh Bank to channel Tk 4,500 crore refinancing support for cluster-based CMSMEs at 7% interest. Tech & Skills: UIU’s Mars Rover team secured 3rd globally and 1st in Asia at URC 2026, while MTB Foundation rolled out certificate distribution for MUSTI skills training batches. Food & Living Costs: Reports highlight how households are juggling rising food prices, electricity shortages and transport chaos, especially during Eid travel.

LPG Relief for Households: Bangladesh Energy Regulatory Commission cut June LPG by Tk 55, bringing the 12kg cylinder to Tk 1,885 (effective 6pm June 2), after earlier sharp hikes in April. Farm Credit Push: Bangladesh Bank told banks to prioritize agricultural credit for farmers hit by heavy rainfall, especially in Sylhet, Sunamganj, Habiganj, Kishoreganj, Netrokona and Moulvibazar, with quick disbursement under refinancing and Krishak Smart Card priority. Budget Focus on Inclusion: Finance Minister Amir Khosru Mahmud Chowdhury said the upcoming budget aims to democratize the economy, expand opportunities for poor and marginalized groups, and reduce business hurdles. Trade & Investment Outreach: Bangladesh and the UK discussed expanding trade and attracting more British investment, including in manufacturing, infrastructure, aviation, renewable energy and services. Port Efficiency Move: Chattogram Customs will auction goods from 102 abandoned containers in 44 lots via e-auction to ease congestion. Banking Stress: Bad loans rose to 32.62% by end-March, with BB citing weak private credit demand. Renewables in Corporate Sector: MetLife Bangladesh installed a 104kW rooftop solar system targeting up to 10% renewable electricity use. Industry Policy Debate: A draft push for higher value addition (up to 50% in some sectors) is raising questions on how Bangladesh will scale beyond labour-based processing.

Bangladesh-US Cotton Deal: USDA says it secured commitments from Bangladesh and Indonesia to support future US cotton purchases under the Great American Cotton Plan, with Bangladesh set for tariff reductions on apparel made using American cotton and inputs. Export Tax Pressure: NBR is considering raising tax deducted at source on export incentives to 20% from 10% in the FY27 budget, plus higher VAT/supplementary/withholding taxes on many goods and services—sparking concern among export-oriented industries. Power Subsidy Crunch: The Power Division seeks Tk 594.5b subsidy in the new budget to cover BPDB losses from buying costly power from private IPPs and imported electricity amid higher fuel and gas prices. Dhaka Metro Funding: Stalled MRT projects get big ADP allocations—Tk 73.5b for MRT-1, Tk 34b for MRT-5, and Tk 19.0b for MRT-6—backed by Japan’s JICA financing. Eid & Leather Market: PMO says 10 Eid-ul-Azha directives delivered “visible positive changes,” including rawhide sector management; Commerce Minister Muktadir blames poor preservation awareness for weak fair hide prices. Border Talks: BGB and India’s BSF will hold DG-level talks in New Delhi on Jun 8, prioritising push-back attempts, fencing, narcotics, weapons smuggling, and border killings. Finance & Markets: Stocks extend a 6th straight rally; Nagad sets new May transaction records; BRAC Bank signs BB refinance deals for MSME cluster financing at 7% rates.