Bangladesh Targets Foreign Investors in Japanese Economic Zone

• Bangladesh Expects USD 400M from AIIB for infrastructure development under climate-resilient projects. Source

• Garment Exports to the US Increase After Two Years, rising 0.75% to USD 7.34B in 2024. Source

• NBR will fully automate the bond system this month to improve trade transparency and efficiency. Source

• Bangladesh’s PMI Rises to 65.7 in January, signaling strong economic expansion. Source

• Janata Bank’s Default Loans Surge to BDT 673B, affecting financial stability. Source

• Japanese Economic Zone Targets Foreign Investors, attracting German and Japanese firms. Source

• USD 30M Investment in Patenga Container Terminal to boost port efficiency with new cranes. Source

• Adani Asked to Resume Full-Scale Power Generation to meet Bangladesh’s rising energy demand. Source

• US Federal Reserve Warns Inflation Fight Will Take Time, keeping rates on hold. Source

Economy & Banking

• Bangladesh Expects USD 400M from AIIB - Bangladesh will receive USD 400M from the Asian Infrastructure Investment Bank (AIIB) under a climate policy-based financing program. The fund will support infrastructure development in climate-sensitive sectors. Source

• Bangladesh’s PMI Rises to 65.7 in January - The country’s Purchasing Managers’ Index (PMI) surged to 65.7 in January, driven by expansions in agriculture, construction, and services Source

• Government Slashes Bank Borrowing Target by 28% - The government has reduced its bank borrowing target from BDT 1,375B to BDT 990B for FY 2024-25 due to lower expenditures and slower development project implementation Source

• Money Flowing Back into Banks, BDT 10.9B Deposited in December - After months of increased cash circulation outside banks, BDT 10.9B returned to banking channels in December 2024 Source

• Janata Bank’s Default Loans Surge to BDT 673B - State-run Janata Bank’s defaulted loans hit a record BDT 673B (USD 5.52B), accounting for 66.8% of its total outstanding loans Source

Business & Corporate

• Garment Exports to the US Grow After Two Years - Bangladesh’s garment exports to the US increased by 0.75% to USD 7.34B in 2024 after a two-year decline. Export volume also grew by 4.86%. Source

• Bangladesh’s Japanese Economic Zone Targets Foreign Investors - The Japanese Economic Zone in Araihazar, Narayanganj, is now attracting foreign direct investment (FDI) from export-oriented companies Source

• NBR to Fully Automate Bond System to Boost Trade - The initiative aims to enhance trade transparency and curb misuse, reducing revenue losses from unpaid duties and taxes. Source

• USD 30M Investment in Patenga Container Terminal - Red Sea Gateway Terminal (RSGT) Bangladesh, the operator of Chattogram’s Patenga Container Terminal, will invest USD 30M to purchase four new cranes Source

Trade & Commerce

• EU Garment Imports from Bangladesh Rise by 1.43%: Despite modest price declines, export volume continues to grow steadily Source

• Direct Bangladesh-Pakistan Shipping Route Boosts Trade: Over 1,000 containers have been shipped since October, cutting transit times by over 50% Source

• Chattogram Port to Break Annual Container-Handling Record: The port expects to handle 3.3 million TEUs by year-end, showcasing trade resilience Source

• Adani Asked to Resume Full-Scale Power Generation - The Bangladesh Power Development Board has requested Adani Power Jharkhand Ltd to restore full-capacity electricity production Source

• Sovereign Securities Buyback to Ease Government Debt Burden - The government is planning a sovereign securities buyback strategy to reduce future debt repayment pressures Source

Capital Market

• Stricter Margin Loan Rules Proposed for Capital Markets - A task force has recommended limiting margin loans to investors with at least BDT 1M in equity and six months of market experience Source

• No Tenure Extension for Closed-End Mutual Funds - Closed-end mutual funds must be liquidated upon maturity, with no extensions allowed. However, investors can vote to convert them into open-ended funds. Source