AGP Executive Report

Agribusiness Finance: IFIC Bank signed with Bangladesh Bank to join the Tk 3,000cr refinance scheme for agriculture-based SEZs, covering production, storage/marketing, processing and export-oriented activities. Frozen Food Exports: Bangladesh Bank launched a Tk 2,000cr fund to revive frozen fish/shrimp exports, but exporters warn past rescue schemes often failed due to bank hurdles, high rates and restrictive conditions. Energy & Industry Pressure: Power cuts are hitting hospitals in Barishal, while manufacturers say the gas/electricity crunch is forcing output cuts and raising costs; govt also reiterated plans to reduce dependence on imported gas. LNG Infrastructure Watch: Novatek proposed a $950m offshore gravity-based LNG terminal concept to Petrobangla as a cheaper alternative to a land-based Matarbari terminal. Markets: Dhaka stocks fell sharply as sell-off fears spread amid energy worries and political risk. Trade & Compliance: Bangladesh says it has cleared 48 of 61 EU non-tariff barriers and is moving toward FTA talks; EU envoy also urged a “level playing field” as Bangladesh weighs Airbus alongside a Boeing deal for Biman. RMG/Logistics Signals: EU/UK trade-finance talks aim to deepen the Bangladesh-UK trade corridor for sectors like pharma, light engineering, agribusiness, seafood and footwear. Environment & Rivers: PM directed coordinated action to keep Dhaka’s rivers pollution-free and improve circular waterways. Local Disruption: Farmers blocked the Lalmonirhat-Burimari highway over fertiliser supply and alleged syndicates, then withdrew after assurances. Industrial Pollution: Environment state minister inspected Akij Steel Mill after local complaints and said monitoring and testing will guide action.

Economic Zones Finance: Pezab has urged the Finance Ministry for a Tk10,000 crore, 4.5% low-cost government-backed fund to make private economic zones investment-ready, citing delays from high-interest short-term bank loans. RMG Supply Shock: Govt has halted knit fabric imports under the new Import Policy Order, and BGMEA/BKMEA are pushing for withdrawal, warning it could hit knitwear exports. Energy Crunch on Industry: Gas shortages are forcing ceramics, tiles and sanitaryware factories to run at only 34–40% capacity; over 30 units face severe disruptions as pressure drops and orders get cut. Refinery Expansion: Bangladesh signed a $1.004bn IsDB deal to expand Eastern Refinery in Chattogram, trebling capacity to add 3m tonnes by 2030. Water PPP in Chattogram: Chattogram WASA and Max Foundation/Max Social Enterprise launched a 3-year PPP pilot for safer water in CCC wards 40–41. Rajshahi Industry Visits: Environment state minister Shaikh Faridul Islam inspected PRAN-RFL’s Rajshahi mill and the Rajshahi Silk Factory, praising PPP reopening and environment-friendly production. Local Trade & Exports: Bangladesh retained No 2 spot in US apparel exports (Jan–Jul), while Tangail’s chomchom push targets overseas markets. Security & Enforcement: Industrial Police recovered Tk 97 lakh of a Tk 1 crore theft from Lavender Group’s chairman’s car; CIID also busted fake cigarette production disguised as a seed processing centre in Mirpur.

Energy & Refining: Bangladesh Petroleum Corporation’s Eastern Refinery is set for major modernization and expansion with Islamic Development Bank (IsDB) financing of over $1.0b (Tk 12,000cr), aiming to triple refining capacity to 4.5m tonnes and cut reliance on imported refined fuel. LPG Logistics: Fresh LP Gas (MGI) added a third LPG carrier, MT Mercantile-65 (2,000 tonnes), lifting in-house transport capacity to 6,000 tonnes to move imported LPG from Kutubdia/Chattogram anchorages to Meghnaghat and Mongla. RMG Policy & Workers: BGMEA pushed for Universal Pension Scheme changes for garment workers—special incentives for the first two years and pension eligibility at 55 instead of 60—while BGMEA and BKMEA urged suspension of a 2026–2029 import restriction that bars knit fabric imports. Industrial Zones: Jashore EPZ progress is fast, with nearly half (200 of 415) of planned industrial plots already prepared for investor allocation. Agro-Food Skills: BAPA trained 46,056 people (57% women) in food processing and related trades, with over 21,000 showing employment/self-employment records. Food Prices Watch: FAO said world food prices rose in August to the highest since late 2022, driven by weather shocks and Black Sea disruptions. Enforcement & Security: CIID/NBR raided a Mirpur-1 seed processing centre and found a fake cigarette operation; separate anti-crime drives in Tejgaon saw 59 arrests. Apparel Trade Performance: Bangladesh retained No.2 spot in US apparel exports for Jan–Jul, benefiting from China’s steep decline.

Energy & Power Crisis: Bangladesh’s electricity squeeze is worsening as LNG and gas supply disruptions bite deeper, with recent accounts linking the latest shortfalls to earlier LNG terminal faults and the broader pattern of import-driven energy vulnerability. Energy Security & Refining: IsDB has approved about $1.004B to expand state-run Eastern Refinery capacity to cut reliance on imported finished fuels, with projected foreign-exchange savings. LPG Market Watch: Despite LPG demand growth, BPC is still failing on LPG import performance even after 7 months, keeping pressure on household cooking costs and supply stability. Health & Public Services: Bangladesh Medical University’s Tk1,500cr Super Specialised Hospital is set to relaunch under a non-profit corporate model to speed staffing and procurement. Labour & Safety: A Bangladeshi worker died in Russia’s AGCC fire, raising fatalities to four, while the wider issue of hazardous work safety remains in focus. Agribusiness & Livestock: BLRI-backed Lumpy Skin Disease vaccine rollout aims to reduce cattle losses and cut farmer costs through domestic production. Local Industry & Exports: Tangail’s Chamcham sweet festival highlights plans to export the GI-certified product abroad. Infrastructure & Housing: A Tk3,542cr housing project at Sher-e-Bangla Nagar proposes 1,512 flats for government officials/employees. RMG/Trade Context: Reports note continued factory closures and margin pressure tied to the energy crunch and global cost swings. Politics & March: A Jamaat-led 11-party alliance begins a Dhaka–Chattogram long march demanding action on energy, prices, and governance.

Agribusiness Modernisation: Bangladesh Agricultural University (BAU) is set to get a $180m ADB-backed project to upgrade agricultural education and research, aiming to build a South Asia research and knowledge hub. Nuclear & Power Grid Upgrade: The Rooppur Nuclear Power Plant has been linked into the national grid’s control system via an agreement between BAEC and GE Vernova, integrating key transmission signals into the NLDC for real-time monitoring. Energy Policy & Renewables: BERC Chairman Jalal Ahmed urged stronger policy support and low-interest financing to expand renewables to ease Bangladesh’s power crisis, while calling for scrutiny of corruption allegations in quick rental power deals. Food Prices Pressure: Dhaka markets report continued shortages and high prices for edible oil, eggs, vegetables and sugar, with retailers blaming limited supply and higher wholesale costs. Labour & Jobs: PM’s labour adviser Mahdi Amin reiterated government plans for sustainable jobs and safer working conditions, stressing keeping factories operational. Cyber Law Consultations: ICT Minister Faqir Mahbub sought stakeholder input to finalise the Cyber Security Act, Personal Data Protection Act and National Data Management Act. Water & Urban Services: Chattogram is piloting a PPP model to tackle clean water shortages in Patenga wards 40 and 41. Disaster Risk: River erosion in Kurigram has left 15 families homeless and washed away cropland, with warnings of further losses if emergency steps aren’t taken. Justice System: The government has formed 22 tribunals to speed up narcotics trials across districts and metropolitan areas.

Energy & Refining Deal: Bangladesh signed a US$1b Islamic Development Bank loan to modernise and expand the Eastern Refinery, adding 3m tonnes annual capacity and targeting completion by Nov 2030, aiming to cut refined fuel import dependence. LNG Price Shock: The government approved spot LNG cargoes at up to $28.03/MMBtu as Middle East disruptions push Bangladesh toward costlier supply routes; LNG subsidy projections are also set to nearly triple. Power Supply Strain: Coal-transport disruptions forced Adani’s Godda plant to reduce daytime dispatch to Bangladesh, while Rooppur commissioning slipped due to faulty valves. Apparel Pressure: Commerce Minister said 402 garment factories closed in 3 years, and exporters warn energy crunch is already raising airfreight costs and squeezing margins ahead of Christmas shipments. Leather Circular Push: A roundtable highlighted tannery waste value potential of Tk 2,000–3,000cr annually if processed with stronger compliance and green financing. Trade & Finance Support: UK Export Finance offered up to £2b for Bangladeshi buyers using British goods/services; Bangladesh Bank also eased FX/remittance rules for hi-tech park firms and launched youth funding schemes. Market & Policy Watch: Bangladesh PMI rose to 57.8 in July on manufacturing rebound, while Bangladesh Bank moves to widen access to finance and refine FX operations.

Leather Industry Reform: The leather sector’s $5b export push faces a major bottleneck as Savar’s CETP is struggling—operating far below design capacity and failing during Eid-ul-Azha—prompting plans for a new CETP, stronger compliance, and possible support for tanneries to install their own treatment systems. Energy & RMG Impact: Apparel exporters warn the energy crunch is squeezing Christmas shipments, with gas and power shortages forcing production cuts and raising airfreight costs and discount pressure from global brands. Bangladesh Bank Finance: BB launched/expanded support for entrepreneurs and industry—offering up to Tk 20 lakh (loan + grant) without collateral under the “Uddyog” scheme, and easing hi-tech park firms’ ability to pay certain foreign fees from taka accounts within set caps. Postal & Digital Push: Govt plans to upgrade 9,000+ post offices and connect 12,000+ institutions to broadband, alongside updates to cyber and data laws. Trade & Market Signals: Commerce Minister Muktadir said soybean oil pricing will follow global indices plus local costs, while BB/commerce moves aim to protect supply and competitiveness; separate policy talk also targets export growth to narrow trade gaps with India and China. Food Safety & Consumer Services: BSTI fined an unhygienic sweet producer Tk 50,000, and foodpanda partnered with Fresh Super Mart to expand grocery q-commerce delivery across Dhaka. Capital Market Oversight: BSEC held consultations on draft Direct Listing Rules 2026 to modernise how strong companies can list directly.

Energy & Policy: Finance and Planning Adviser Rashed Al Mahmud Titumir said Bangladesh’s power crisis stems largely from past flawed, import-dependent energy policies, while global LNG price volatility is worsening costs. RMG & Industry Support: A BGMEA board delegation met President Mirza Fakhrul Islam Alamgir, seeking policy backing for the RMG sector, citing steps like LDC graduation extension, Tk 200bn financing for idle factories, bonded raw material access and customs simplification. Power Trade Disruption: Nepal’s Bhotekoshi floods damaged hydropower projects and cut electricity exports to Bangladesh, with exports reportedly dropping from about 1,000MW to around 650MW. Fertilizer Supply: Agriculture Minister Mohammed Aminur Rashid told parliament there is no fertilizer shortage, citing 1.3m tonnes stock and tighter surveillance against any “artificial crisis.” Food & Consumer Safety: Commerce Minister Khandakar Abdul Muktadir said an expert committee is testing microplastics in toothpaste samples sent to BCSIR. Labour Migration: Malaysia will resume hiring from Bangladesh with 10,000 workers under a zero-cost recruitment arrangement via BOESL, with agencies selected and workers told not to pay brokers. Environment Enforcement: Rajshahi administration and the Department of Environment announced continued action against illegal brick kilns and tighter rules on leasing canal-excavated soil. Agriculture & Markets: Hilsa supplies rose in Chandpur, pushing prices down sharply over days. Regional Climate Justice: Nepal’s FM urged international support for flood recovery as “climate compensation,” arguing Nepal contributes far less emissions than it suffers.

Climate Finance for Nepal Floods: Bangladesh has asked the UN Loss and Damage fund board for urgent support after Nepal’s Aug 26 Bhotekoshi flash floods, seeking help to restore services and livelihoods. Energy Crunch Response: Business leaders urged restarting idle coal, furnace-oil and diesel power plants to ease gas pressure on factories, while the government also moved ahead with a 10-year power/energy plan and rooftop solar incentives. Rooftop Solar Push: A new rooftop solar with battery incentive pays 10.50 taka per kWh for surplus power to the grid for three years, aiming to cut fuel imports. Power Sector Finance: Mutual Trust Bank joined Bangladesh Bank’s Tk 41,000cr refinance push for priority sectors, and BRAC Bank secured a $50m IFC facility to expand MSME lending (with focus on women-led and agriculture-linked firms). Fertiliser Supply: The Cabinet Committee approved imports of 70,000 tonnes of fertiliser for the Aman season (DAP and TSP from Morocco) to prevent shortages. Industry Costs & Markets: Steelmakers warned higher electricity tariffs and gas shortages are squeezing margins as rod prices rise but demand stays weak; the DSEX also fell sharply in August amid the energy crisis. Consumer & Trade Signals: LPG prices were cut for September, bottled soybean oil prices rose, and Dhaka Bank signed with Visa to expand card growth.

Rooftop Solar Push: Bangladesh has launched a rooftop solar incentive with battery storage to cut power shortages and fuel imports, paying 10.50 taka per kWh for surplus power fed to the grid for three years (installations eligible until Feb 28, 2027). Energy & Industry Pressure: The move comes as peak shortages hit nearly 4,000MW in August amid gas constraints and fuel supply limits, squeezing industrial output and households. Climate Finance for Nepal: Nepal has asked the UN Loss and Damage Fund for emergency support after the Aug 26 Bhotekoshi flood, framing it as “moral liability” not charity. Agriculture Aid Targeting: FAO says about 10 lakh farming households need emergency agri help (June-Nov), urging Bangladesh to better target river/haor and flash-flood hotspots. Finance Sector Reform Gap: Bangladesh Bank’s loan rescheduling package is being criticised for not fixing default-loan recovery, with key distressed-asset laws still awaiting Cabinet approval. Trade Talks: Bangladesh’s commerce ministry is gathering exporter concerns on India-US market access and tariff uncertainty ahead of ministerial engagement.

Capital Markets: BSEC approved draft rules for direct listing, letting eligible firms (including banks/insurers/telecoms with Tk 500cr+ turnover or assets) enter without an IPO, and also signalled plans for derivatives trading from Jan 2028. Energy & Power: ADB okayed a $175m concessional loan to upgrade Chattogram Hill Tracts power distribution, while the govt announced a rooftop solar incentive with battery storage paying Tk 10.50 per unit (Tk 8 base plus profit/premium) for systems installed by Feb 28, 2027. Exports & RMG: Bangladesh’s merchandise exports rose 13.14% YoY to $4.43b in August, led by a 13.92% RMG rebound; non-RMG gainers included jute, pharma, leather and engineering. Industrial Risk from Gas: Commodity importers and processors warned gas and electricity disruptions are already hurting production and could trigger wider supply-chain problems. Agri & Fisheries: Disease wiped out shrimp at 250 Batiaghata farms, with losses estimated above Tk 15 crore. Trade & Policy: NBR exempted turnover-tax for businesses up to Tk 2cr and set a lower 0.5% band for Tk 2–4cr turnover. Logistics/Infrastructure: APM Terminals broke ground for Laldia container terminal ($550m), boosting port capacity. Border Tech: Home Minister inaugurated Bangladesh’s first Shimanto School for surveillance and drone warfare, with plans to expand digital border monitoring.

ADB Energy Upgrade: The Asian Development Bank approved a $175m concessional loan to modernise power distribution in Bangladesh’s Chattogram Hill Tracts, targeting 26 upazilas with new substations, 5,032km of lines and upgrades to ageing networks to lift grid access to 68% by 2032. Port & Logistics Push: APM Terminals broke ground on the $550m APM Terminals Laldia container terminal in Chattogram, aiming to handle larger vessels and add 800,000 TEU capacity—key for a port that carries most of the country’s import-export trade. Agri Finance: Bangladesh Bank and Islami Bank signed a Tk3,000cr refinancing deal to strengthen the agricultural value chain, covering production, storage, processing and marketing. Digital Business Ease: RJSC plans an Electronic Business Registration System modelled on Singapore to let entrepreneurs register companies online within hours, with instant pre-verification to reduce errors and fraud. RMG/ESG & Skills: Youngone’s 2025 Sustainability Report highlights solar expansion and community health and training plans in Bangladesh, including plans to scale its hospital and set up a textile/fashion college. Food & Retail Digital Skills: foodpanda ran a digital marketing workshop for 160 Cambodian vendors, using AI and TikTok-focused training to help small businesses grow. Trade Supply Chain Innovation: AmeriBangla launched CottonPort, a fully digital raw cotton marketplace linking US farmers to Bangladeshi spinning mills with container-based logistics and traceability. Insurance Oversight: IDRA plans a crackdown on data manipulation in insurance, including forensic audits, risk-based supervision and unique policy/cover IDs to curb fraud. Energy Crisis Context: Bangladesh’s gas and power disruptions remain a major concern for industry continuity, with supply hitting decade-low levels in recent coverage.

Textile Trade & Tariffs: Bangladesh’s garment exporters get a slight edge in the US market after a new 10% duty, with Bangladesh’s effective tariff at 25.6% versus 35.6% for China and 28.1% for Vietnam—though industry says the gap may be limited by production and shipment pressures. LDC Graduation Prep: ICC Bangladesh ran a Chattogram workshop on “International Trade Financing following LDC Graduation,” urging banks and businesses to plan for post-graduation banking and trade challenges. FX Market Modernisation: Bangladesh Bank is rolling out an electronic FX Market Module to automate forex intervention auctions, interbank dealing, and reference-rate data. Banking Leadership: Standard Chartered Bangladesh appointed Enamul Huque as CEO effective Sept 1, after a three-month CEO gap. Agri Support & Climate Resilience: Prime Bank signed an MoU with BAU to fund climate-resilient crops, fisheries and livestock in haor areas; FAO also warns about emergency agri aid needs for ~50 lakh people. Business Pulse: PMI rose to 57.8 in July on a manufacturing rebound. Apparel Compliance Pressure: Clean Clothes Campaign urged brands to disclose US tariff refunds and ensure compensation reaches garment workers and suppliers. Footwear Investment Interest: Hong Kong Shoe Association explored direct investment and joint ventures with Bangladesh Shoe City, with Bida support on export logistics. Energy & Costs: Fuel oil prices stayed unchanged for September; BB also eased repayment for large loan defaulters via longer rescheduling tenure. Industry Events: Bangladesh will showcase textile and apparel at Texworld Paris 2026 with 17 participating firms.

Energy Crunch: Bangladesh’s gas supply in August slid to a decade-low 2,235 mmcfd, dragging power generation and pushing factories toward near standstill, with the power deficit peaking around 3,000MW. RMG Automation: Export-oriented garment factories are adopting AI/IoT monitoring on sewing lines, reporting productivity gains of up to 25% through real-time tracking of machine performance and defects. Trade & Finance: Bangladesh Bank cut the rate on its Tk 3,000cr agro-based economic hub refinancing fund to 3% for banks, capping customer rates at 7%, while forward dollar booking helped importers gain up to Tk1 per dollar after the rate rebound. Ports & Industry Zones: Construction is set to begin on the $550m Laldia container terminal, aiming to lift Chattogram’s logistics role, and Ishwardi EPZ reported export growth to $289.32m in FY25-26. Diplomacy for Industry: China invited Bangladesh President Mirza Fakhrul Islam Alamgir to visit China, with talks flagging CEIZ investment and Mongla port/EPZ cooperation. Humanitarian/Regional: The US and Sri Lanka launched “Atlas Angel II” disaster-response drills, with Bangladesh observers participating.

Frozen Food Exports Boost: Bangladesh Bank set up a Tk 2,000 crore revolving pre-financing fund for frozen shrimp and fish exporters, offering up to 7% financing to ease cash-flow and cold-chain costs. Agriculture Credit Cut: BB also revised its Tk 10,000 crore farm refinance, cutting the farmer/customer cap to 7% and the bank refinance rate to 3%, while keeping loan tenures unchanged. Northern Agri Economic Centre: BB revised the Tk 3,000 crore scheme for a northern agriculture-based economic centre, setting 3% at bank level and up to 7% for customers, with tighter loan tenures. Metro Rail Cost Review: An inter-ministerial committee will review revised budgets for Dhaka Metro Line-1 and Line-5 Northern, with early cuts of about Tk4,800 crore expected. Port & Logistics Push: APM Terminals began construction of the $550m Laldia Container Terminal in Chattogram, targeting 1m TEUs a year and boosting the port’s role as a regional logistics hub. Energy Pressure on Industry: Business leaders warned that Bangladesh must stabilise power and gas supply for existing industries before courting new investors, calling for predictable supply and advance load-shedding schedules. Food Safety Crackdown: BFSA fined 16 outlets Tk 20.50 lakh in a week-long drive, including cases over stale food, expired items, and hygiene lapses. Market Watch: DSE opened the week bearish as selling pressure hit major sectors, while BSEC ordered probes into Sharp Industries and Aamra Technologies after abnormal price moves. Skills & Jobs: Youth-focused push for technical education and self-employment continued, alongside KUET’s Sept 1 University Day plans and a ZRF science fair call for future innovators. Trade & Diplomacy: Imports from India rose to $10.96bn in FY26 despite restrictions, while Bangladesh-China “two-plus-two” talks are expected soon.

Bangladesh–Malaysia Business Ties: Health and Family Welfare Minister Sakhawat Hossain said the Bangladesh–Malaysia partnership is built on mutual trust, urging Malaysia to increase imports from Bangladesh as business leaders met in Dhaka. Dhaka Transport Modernisation: PM Tarique Rahman ordered Electronic Toll Collection (ETC) on expressways and flyovers within four months, plus an app and congestion fixes; he also pushed relocation plans for Karwan Bazar kitchen market to Gabtoli and Fulbaria bus terminal to Keraniganj. Port & Logistics Expansion: The foundation stone for the Laldia Container Terminal at Chattogram Port is set for today, aimed at boosting container handling and cutting cargo time; Chattogram also retained 68th place among the world’s busiest ports. Shipbuilding Investment Interest: Maersk Line discussed direct investment in Bangladesh’s shipbuilding (and ship recycling) with Bangladesh’s commerce minister, with potential jobs and skills transfer. Industrial Policy Update: The government’s new CIP (Industry) policy tightens eligibility with production, investment, profitability, tax compliance and job creation scoring, limiting awards to 55 per year. Energy/Industry Pressure: Reports highlight gas and power shortages hitting garment incomes and production, while investors still cite missing confidence for a manufacturing revival. Regional Disruption Watch: Nepal’s flash floods continue to disrupt transport and rescue operations, with downstream concerns for the region’s infrastructure and supply chains.