AGP Executive Report

FDI Push: Prime Minister Tarique Rahman urged global investors to become long-term partners as Bangladesh seeks a $1 trillion economy, while the FICCI FDI Conference 2026 and Investors Expo showcased opportunities ahead of post-LDC graduation. Investment Pipeline: BIDA says it has converted over $400m from a $1.5bn pipeline into active decision/implementation stages, with projects including an $80m sewing plant and a $220m integrated textile complex, plus advanced automated fabric manufacturing. Garment & Sustainability: BGMEA and GRI signed a strategic partnership under the ITSB initiative to strengthen sustainability transparency and impact-based reporting. Energy & Trade Risk: LNG prices are rising for Bangladesh and Pakistan due to Middle East disruptions, adding pressure to import bills as Hormuz and Red Sea tensions affect supplies. Water Pollution Control: Government plans online monitoring for industrial ETP systems to make the Buriganga River pollution-free, including IP cameras and control rooms at shipyards. Agriculture Modernisation: Farmers will get 15,000 airflow machines for onion storage to cut imports, and mechanisation efforts are expanding to boost rice productivity. Policy Updates: Civil aviation rules are set for a major overhaul after decades, with new provisions on drones and carbon plans. Tourism Planning: An integrated master plan is being prepared to develop Cox’s Bazar as a regional tourism hub, balancing growth with environmental protection.

RMG Exports: Bangladesh’s ready-made garment exports dipped 0.63% year-on-year to $19.34bn in Jan–Jun 2026, with woven up 0.68% to $9.20bn but knitwear down 1.80% to $10.14bn, as EPB data shows a resilient yet volatile market. Garment Support: PM Tarique Rahman told BGMEA the government will back sustainable RMG growth and ordered quick action to fix bottlenecks, especially uninterrupted gas and electricity supply. Industrial Partnership: South Korea’s ambassador visited Samsung-linked Fair Electronics in Narsingdi, saying Bangladesh can become a regional manufacturing hub and stressing strict enforcement of the National Equipment Identity Register to protect local production. Energy Policy: The energy minister said the government plans to privatise electricity distribution at consumer level to improve accountability, service and bill collection, while keeping generation under state control. Fuel Security: Energy ministry officials ruled out a diesel crisis, citing 344,000 tonnes in stock and plans to build strategic reserves. Trade & Diplomacy: Foreign Minister Khalilur Rahman said “Bangladesh First” will guide external relations after separate talks with China, Russia and the US in Manila. Regional Finance Cooperation: BIMSTEC wrapped an AML/CFT capacity-building programme in India to strengthen member readiness against money laundering and terror financing. Shipping Industry: Bangladesh Shipping Corporation’s move to expand its ocean-going fleet highlights efforts to retain more freight earnings and cut reliance on foreign carriers.

Fertiliser & food procurement: CCGP approved import of 40,000 tonnes of MOP fertiliser (Tk 192.10 crore) and also cleared procurement of 1.6 crore food sacks for the DG Food (Tk 111.06 crore). Faster fertiliser supply: CCEA gave in-principle approval to cut the emergency fertiliser raw-material tender submission period from 42 to 21 days to avoid production disruptions. Energy crunch deepens: A technical glitch at the Moheshkhali floating LNG terminal cut gas supply to the national grid by about 450 mmcfd (around 17%), hitting industries, power plants and CNG stations. Renewables push: CCGP approved a solar power plant with battery backup for Hatiya (Noakhali) at about Tk 174.18 crore. Export finance boost: Bangladesh Bank doubled exporters’ retention quota for high import-content merchandise exporters from 7.5% to 15% of repatriated FOB value. Garment sector bottlenecks: PM Tarique Rahman assured full support to garment exporters and ordered quick removal of major bottlenecks, including uninterrupted gas and electricity. Textile industry relief talks: BTMA urged a refinancing scheme (max 5% interest) and faster working-capital support; a high-level committee was directed to review challenges. Investment facilitation: BIDA launched a nationwide industry survey to build Bangladesh’s first comprehensive investment database, linked with its One Stop Service platform. Ship recycling upgrade: Commerce Minister Muktadir said a single online system is planned to simplify ship-recycling approvals, with JICA support for modern guidelines and yard capacity work. Housing & urban planning: PM met REHAB, promising a transparent, accountable housing sector push and urging balanced development beyond Dhaka.

Energy Security & Industry: PM adviser Mahdi Amin says Bangladesh is prioritising reliable gas and electricity for factories, alongside port efficiency and lower cost of doing business, with reforms like new industrial parks, easier bonded warehousing, faster incentive disbursement and more PPP/FDI. Gas Supply Disruption: A technical fault at the Moheskhali floating LNG terminal cut gas to the national grid by about 450 mmcfd, with low pressure expected for customers until repairs. Investment Climate Debate: A commentary questions whether the new Invest Bangladesh Bill (merging BIDA, BEZA and PPPA) will truly improve the investor experience, pointing to on-arrival frictions and administrative hurdles. Food Safety Regulation: Bangladesh Food Safety Authority rules now require registration/licensing for food businesses across the chain, including roadside vendors and many SMEs, raising concerns about added compliance burden. Trade & Export Push: Bangladesh plans to join 50 international trade fairs in FY27, and the government moves to expand jute exports via diplomacy and an International Jute Expo. Apparel Sector Focus: BAYLA’s Future Summit highlights energy reliability and technology adoption as key to sustaining RMG export growth; industry leaders also call for AI and tech uptake for post-LDC competitiveness. Maritime Security: ReCAAP reports a 64% drop in piracy/armed robbery incidents in Asia in H1 2026, with Bangladesh among the improved areas. Banking/Finance: Bangladesh Bank allows National Bank to lease out its under-construction Twin Tower until 2031, amid ongoing losses and governance concerns. Data Integrity: An audit of past GDP and CPI data is expected to finish this month, after controversy over official statistics.

Deepfake crackdown: The government will soon issue a notification to form a special lawyers’ panel to tackle deepfakes, disinformation and cyberbullying, with a zero-tolerance stance and faster legal action for victims. Trade push: Bangladesh plans to take part in 50 international trade fairs across 27 countries in FY27, highlighting leather, agro-processing and light engineering for double-digit export growth, while also setting the Dhaka International Trade Fair opening for Jan 1. Jute export drive: Foreign and textiles/jute ministries will create a joint working group and plan an International Jute Expo to expand jute exports and strengthen global market presence. Food safety rules: New Bangladesh Food Safety Authority regulations (gazette July 16) require registration or licensing for food businesses across the supply chain, including roadside vendors and restaurants, aiming to tighten oversight. Economy watch: Bangladesh’s GDP growth slowed to 2.22% in Q3 FY26 as industrial output contracted, raising pressure on recovery. Market update: CSE30 index was revised with 4 companies added and 4 dropped, effective July 30. Energy security: Government moves to build strategic energy reserves and expand LNG and gas-grid measures to reduce supply risks. Sector spotlight: Leather Working Group guidance is framed as aligning with Bangladesh’s own environmental compliance needs, supporting export readiness.

Maritime Security in Bay of Bengal: BIMSTEC’s 5th National Security Chiefs’ meeting in New Delhi adopted non-binding maritime guidelines for humanitarian assistance and disaster relief, plus principles for maritime law enforcement—an effort to standardise cooperation as China’s regional footprint grows. RMG Tech Push: Industry leaders at BAYLA Future Summit 2026 urged Bangladesh’s apparel sector to scale AI, automation and Industry 4.0, shifting from low-cost production to higher value-added manufacturing for post-LDC competitiveness. Insurance Reform: IDRA moved to settle long-pending claims first, ordering auditor-supervised accounts for proceeds from asset sales and investments, with FIFO payment to restore policyholder trust. Energy Transition Pressure: The Power, Energy and Mineral Resources Minister warned gas pressure is declining and called for faster renewable energy adoption, urging NGOs to expand rural clean-energy work. Industrial Slowdown: Bangladesh’s industrial output contracted 0.28% in Q3 FY26 as gas/electricity shortages, weak export demand and high borrowing costs hit factories. Trade & Connectivity: A feasibility study for Jashore–Benapole double-tracking nears completion, aiming to cut delays and boost Bangladesh–India rail freight and passenger capacity. Flood Risks: Heavy rain and upstream flows are driving river levels above danger marks in parts of Rangpur and Sunamganj, with flash flooding warnings for low-lying areas. Construction Cooling: Bangladesh’s construction sector is losing steam as ADP implementation weakens, private investment slows, and financing costs rise.

Maritime Security: ReCAAP reports armed robbery against ships in Asia fell 64% in Jan–Jun 2026 (35 incidents vs 96 a year earlier), with notable drops including Bangladesh, while Philippine ports saw a surge. Aviation & Infrastructure: CAAB says a Japanese consortium is likely to sign the HSIA Third Terminal deal by late Aug/early Sept, targeting a Dec 16 inauguration. Trade & Investment Readiness: Commerce Secretary says Bangladesh will adopt a new five-year trade capacity plan ahead of LDC graduation, via the WTO-led EIF, to tackle non-tariff barriers and improve the investment climate. Tax Administration: DCCI urges NBR to strengthen source tax monitoring with automation and digital systems, but avoid harassment of already compliant businesses and give non-compliant firms time to adjust. Consumer Safety: BSTI ordered recall/withdrawal and bans on eight products from four companies over preservative, microbial and nutrient standard breaches. Renewables Push: Energy minister Iqbal Hassan calls on NGOs to invest in rural solar and rooftop systems to cut import costs. Industrial Research Link: RUET and Khwaja Yunus Ali University’s MTE departments sign an MoU to boost research and industry partnerships. Port Expansion: Saudi RSGT launches operations at Chattogram’s Patenga Container Terminal, doubling capacity to 600,000 TEUs and citing productivity gains. Health Access: PM directs improved, easier healthcare for marginalized people and stricter action against negligence, including expanding dialysis services. Environment & Agriculture: Farmers and activists in Rajshahi demand a phased ban on highly hazardous pesticides to protect ecosystems and food safety. Project Update: ECNEC to consider a second revised DPP for the Dhaka-Ashulia Elevated Expressway, with cost rising to Tk265.81bn and deadline extension to June 2030.

Pharma pricing deadlock: A regulatory impasse over drug pricing is delaying marketing approvals for hundreds of locally made medicines, leaving patients without newer therapies and tying up manufacturers’ investment. Energy cost pressure: Bangladesh’s fuel import bill jumped 85% amid Middle East conflict, raising concerns for costs across industry and transport. Trade demand stays cautious: Bangladesh Bank data shows import settlements in FY26 rose only 0.09% to $70.4bn, even as import orders increased 7%, pointing to subdued industrial demand and weak business confidence. Banking cleanup: Bangladesh Bank has asked administrators of five merged banks to submit exit plans for Sammilito Islami Bank’s resolution process. Heat risk to livelihoods: A global report warns Bangladesh’s agriculture and construction workers could lose about 23.75 working days a year by 2030 due to heat stress, hitting incomes hard. Climate resilience works: Khulna City Corporation launched drain cleaning to cut waterlogging and disaster risks under the 3C project. Handloom revival push: The government plans new policies to revive handloom, prioritising artisans’ needs on credit, yarn prices and marketing. Rising rice prices: Fine rice prices increased in Dhaka and Chattogram amid flood damage, higher paddy costs and uncertainty over imports. Regional maritime cooperation: BIMSTEC security chiefs endorsed guiding principles for maritime law enforcement and HADR coordination. Air connectivity: US-Bangla plans to expand to 30 destinations in 20 countries by Dec 2027 and launch a second airline.

Trade & Investment Readiness: Bangladesh will roll out a new five-year trade capacity plan under the WTO’s Enhanced Integrated Framework to prepare for LDC graduation, focusing on cutting non-tariff barriers, meeting compliance demands, and improving the investment climate through a 12-activity Country Programme Document. RMG Productivity & Worker Support: A VisionSpring initiative is supplying low-cost reading glasses to garment workers, helping them thread needles faster and reduce errors—an immediate boost for Bangladesh’s export-heavy apparel workforce. Investment Promotion Overhaul: Parliament has passed the Invest Bangladesh Bill to merge BIDA, BEZA and PPPA into a single one-stop investment agency with integrated digital services and clearer approval timelines. Banking Cleanup: Bangladesh Bank is moving to resolve non-performing loans with an 18-month strategy, including annual NPL targets, a strict one-time exit facility, tighter classification rules, and a national asset management company. Aviation Expansion: Biman plans to lease up to 10 aircraft by 2027 (with transparency checks) to expand international routes ahead of new Boeing deliveries. Heat Impact on Labour: A new report warns extreme heat could cut working days for agriculture and construction workers and raise healthcare costs, deepening household financial stress. Textile & Jute Industry Signals: BTMA selected NITER textile students for a China study visit, while the Bangladesh Jute Association urged stopping jute sliver exports over incentive misuse.

BEPZA Investment: China’s Huarun Tex Co. Ltd. will invest $30m in the BEPZA Economic Zone in Mirsharai, Chattogram, aiming to produce 24,000 tonnes of yarn and 20m metres of grey woven fabric annually and create about 580 jobs. RMG Recovery Push: LGRD and Cooperatives Minister Mirza Fakhrul Islam says Bangladesh’s economy can recover despite current challenges, with the garment sector as a key partner—backed by skills, innovation and a stronger workforce. Worker Safety & Skills: BGMEA joined a roundtable on “Beyond Wages” to improve safer jobs for RMG workers, highlighting health, social protection and skill programmes. Textile Sector Leadership: ITET officially handed over responsibilities to its newly elected 15th Council, pledging stronger professional excellence and closer industry collaboration. Sustainability Recognition: Evitex Dress Shirt Ltd (Evince Group) won “Most Sustainable Garments Factory of the Year” at the SDG Brand Champion Awards 2026. Cotton Drive: State Minister Mir Shahe Alam says government efforts will boost domestic cotton production to cut import dependence, with hybrid seed and inputs distributed to farmers and plans to bring them under the Farmer Card programme. Transport Electrification: Govt plans to introduce around 1,400 electric buses, expanding charging infrastructure and procurement packages. Capital Market Reform: BSEC plans to resume direct listing for big firms and MNCs, aiming to reduce delays and fees. Banking Costs: ABB proposed extra charges for 14 banking services, including limits on cash withdrawals, drawing criticism from customers and business groups. Energy Security Watch: IEA chief warns global energy security is at risk if the Strait of Hormuz doesn’t reopen soon as oil prices jump.

Energy Security: The IEA warned that if US-Iran oil flows through the Strait of Hormuz don’t improve soon, global energy security will worsen, as hostilities keep shipping risk elevated and oil prices jump. Capital Markets: Bangladesh Securities and Exchange Commission (BSEC) chief Masud Khan said large firms could be brought to the stock market via direct listing to cut delays, while also pushing stronger audits and broker oversight. Banking Costs: The Association of Bankers, Bangladesh proposed extra charges for 14 banking services, including fees for cash withdrawals beyond limits and higher account maintenance—sparking backlash from businesses and customers. RMG Industry 4.0: Ha-Meem Group signed an MoU with Robonauts to speed up Industry 4.0 adoption in ready-made garments, focusing on robotics/AI training and smart factory automation. Textile Investment: Huarun Tex will invest $30m in BEPZA (Mirsharai, Chattogram) to produce yarn and grey woven fabric, creating 580 jobs. Halal Exports: Exporters say halal certification via BSTI/Islamic Foundation is costly, slow and sometimes lacks needed lab tests, urging a free, single-window national process. Power Transition: Government unveiled a long-term power-sector roadmap with mandatory industrial energy audits, renewables incentives, and governance reforms to cut fuel imports and improve reliability. Environment & Transport: PM Tarique Rahman urged eco-friendly brick tech and AI-based horn monitoring; separate reports say roads damaged by floods will be repaired swiftly. Skills & Jobs: A report links weak learning outcomes to Bangladesh’s youth employment crisis, while a new Skill IT institute in Bagerhat highlights technology-based training.

Flood Response & Industry Disruption: Bangladesh continues relief and awareness after flash floods, landslides and hill collapses, with Chattogram reporting 16 deaths, thousands of damaged homes and major road/bridge impacts; heavy rain is forecast again, while garment exporters are pushing for an emergency support package after Chattogram Port flooding snarled shipments and threatens export competitiveness. LDC Graduation & Trade Readiness: Commerce Minister Khandakar Abdul Muktadir seeks a three-year extension to Bangladesh’s LDC graduation preparatory period, citing transition, energy and supply-chain shocks; the EU and G77/China reaffirm support for smooth, irreversible graduation. Debt Relief for Social Spending: Finance Adviser Dr Rashed Al Mahmud Titumir urged the UN to set up a debt restructuring/relief mechanism so fiscal space can protect investment in children and women and keep SDG progress on track. RMG Labour & Human Rights Pressure: A rights group warns garment closures and layoffs are escalating into a human rights crisis, with delayed wages and weak dispute systems cited as key triggers. Maritime Security & Logistics: Coast Guard dismantles a firearms-manufacturing syndicate in Moheshkhali; separate reports flag robberies at Chattogram Port outer anchorage, raising safety concerns for shipping crews. Regional Security Cooperation: India hosted BIMSTEC National Security Chiefs’ meeting, focusing on counter-terrorism, cyber, maritime and energy security, disaster management and connectivity. Food Safety & Agri Exports: BFSA orders withdrawal of three pitha/slice bread products over excess preservatives; Gazipur jackfruit growers are upbeat about planned exports to China. Energy/Infrastructure Note: Petrobangla says 2026 LNG imports from QatarEnergy will fall by 50%.

Food Safety: Bangladesh Food Safety Authority (BFSA) ordered the immediate withdrawal of three packaged food items after finding excess preservatives, asking consumers not to buy or consume them. Agri-Exports: Gazipur jackfruit growers and traders are upbeat after the government’s plan to export Bangladesh’s GI jackfruit to China, supported by a bilateral MoU and value-added processing push. Garments Productivity: A simple pair of reading glasses is helping garment workers boost speed and reduce eye strain, with VisionSpring and BGMEA-backed efforts aiming to close the access gap. Trade & Finance: Bangladesh Bank unveiled a framework to ease import trade in free trade zones (FTZs), setting rules for authorised dealers and offshore banking units and clarifying how consignment imports are treated for risk and financing. Export Performance: BEPZA reported FY26 exports of $8.41bn, up 2.2%, contributing 17.51% to national exports, alongside new investment proposals and jobs. Energy Risk: Petrobangla said QatarEnergy LNG deliveries for 2026 may be cut by about half due to force majeure tied to the Middle East conflict. Climate & Farming Impact: El Niño warnings point to extreme weather risks, while Chapainawabganj Fazli mango harvest is hit by fruit fly outbreaks after prolonged rain. Regional Security: BIMSTEC national security chiefs endorsed guiding principles for maritime law enforcement and disaster relief, with NSA Ajit Doval calling for deeper cooperation on terrorism, cyber threats and maritime security.

Garment Productivity Boost: AP reports that a simple pair of reading glasses is helping garment workers in Gazipur thread needles faster and reduce headaches, supporting steadier output in high-speed production. EU Market Rules: The EU adopted new GSP rules for 2027-2036 with tougher sustainability and transparency, while noting clothing remains the biggest share of GSP trade—important for Bangladesh’s apparel exporters. Bangladesh Bank FTZ Import Rules: Bangladesh Bank issued a framework for import transactions into Free Trade Zones, defining eligible importers/logistics players and how banks should treat goods for financing and exposure. Energy Transition Incentives: Bangladesh rolled out solar tax breaks and rebates from the July 1 budget to cut import dependence amid power stress linked to Strait of Hormuz disruptions. Energy Security Warning: IEA chief Fatih Birol warned global energy security is at risk unless oil flows through the Strait of Hormuz improve within weeks—directly relevant to Bangladesh’s fuel import costs. RMG Export Pressure: Eurostat-based analysis says Bangladesh’s apparel exports to the EU fell 18.89% in Jan-May 2026, with both volume and unit prices dropping. Urban Budget: DNCC announced a Tk 4,527.74 crore budget for 2026-27 prioritising drainage, waste management and dengue control. Safety Incident: A salt factory fire in Chattogram’s Boalkhali killed two workers and left six in critical condition. Finance Sector Cleanup: Bangladesh Bank extended a one-time exit settlement facility for distressed NBFI borrowers until Dec 31, 2026. Regional Security: BIMSTEC national security chiefs met in New Delhi and endorsed maritime law enforcement and disaster relief guidelines to tackle terrorism and organised crime.

Bangladesh Investment Push: Parliament has passed the Invest Bangladesh Bill to unify BIDA, BEZA and PPPA into a single apex investment agency under the PM’s Office, aiming for true one-stop investor services. Banking & Trade Facilitation: Bangladesh Bank rolled out a framework for FTZ import trade, clarifying how banks should handle FTZ-related imports and consignment arrangements, while also introducing a special one-time exit policy for finance companies to settle bad/loss loans (principal not waived; interest may be waived after checks). Industry Data & Investor Support: BIDA, ADB and SANEM held a Khulna workshop to launch the Survey of Industries in Bangladesh, targeting a unified database and faster problem-solving for investors. RMG & Jobs Signals: Flood disruption and sector pressure continue to hit operations, while Bangladesh’s RMG job shedding and export competitiveness remain key concerns. Aviation Expansion: Biman invited global bids to dry-lease three Boeing 787-9 Dreamliners for six years to expand its fleet by early 2027. Energy & Macro Watch: IMF discussions point to slower growth ahead, while Bangladesh’s broader energy and trade planning stays in focus.

Labour Rights: Bangladesh’s Malaysia migration corridor is set to reopen, but rights groups warn workers could face debt bondage and unpaid wages unless a legally binding bilateral labour deal and transparent recruitment system are in place. Ports & Logistics Investment: Saudi Arabia’s transport delegation met Bangladesh PM Tarique Rahman, with Red Sea Gateway Terminal International signaling a USD 180m Bay Terminal plan and up to USD 1bn port-sector investment. FDI & Investment Climate: JS passed the Invest Bangladesh Bill, merging BEZA, PPP Authority and BIDA into a single Invest Bangladesh Authority to create a true one-stop investment push. Banking & Industry Finance: Bangladesh Bank eased external borrowing rules for fully foreign-owned industrial firms, while BTMA urged faster stimulus access, LC payment settlement and sector-focused interest-rate support. Textile Exports: BEPZA reported FY26 exports of $8.41bn (+2.2%) and record $718m investment proposals. Food Policy: Dhaka Ahsania Mission and media advocates pushed for Front-of-Pack Labelling on packaged foods to help curb NCD risks. Energy & Urban Waste: Govt briefed a Dhaka waste-to-energy plant targeting 42.5MW by Aug 2028. Flood & Environment: Relief efforts continue for flood victims; environment minister also said no wood can be used as fuel in brick kilns, urging cleaner tech.