Inflation Control: Bangladesh Targets 6-7% in the Next Fiscal Year

• Bangladesh Leads South Asia in Mobile Money Growth, with 56.12% of South Asia’s mobile accounts registered in the country. Source

• Saudi & UAE Firms Eye Major Infrastructure Investments in Bangladesh, with plans for port expansions and renewable energy projects. Source

• Two More Bangladesh RMG Factories Earn LEED Certification, strengthening the country’s green manufacturing leadership. Source

• Bangladesh May Lift Ban on Aromatic Rice Exports to boost foreign earnings and curb illegal trade. Source

• EU Proposes a Comprehensive Partnership with Bangladesh, enhancing trade ties and investment opportunities. Source

• Bangladesh Signs LNG Deal with US Firm, ensuring long-term energy security and stable imports. Source

• Major global port operators express interest in Chittagong port development, which aims to enhance export capacity. Source

• Foreign Direct Investment in Bangladesh’s EPZs Falls 22%, but exports from the zones rise 22.4%. Source

Economy & Banking

• Bangladesh to Repurpose USD 670mn in World Bank Loans: The government will reallocate USD 670mn in loans, with USD 500mn set aside for budget support to address fiscal challenges. These funds are being shifted from slow-moving projects, such as the Road Safety Project and Livestock Development. Source

• Inflation Expected to Drop to 6-7% in Next Fiscal Year: Experts forecast inflation could fall to 6-7% by FY26, assuming no major economic disruptions. Increased remittances and controlled illicit financial outflows are contributing to this outlook. Source

• Bangladesh Faces a 27% Rise in Foreign Debt Payments: The country’s foreign debt servicing costs surged by 27% in the first half of FY25, reaching USD 1.98bn, as loan disbursements declined. Source

• Bangladesh Received USD 1.68bn in January Remittances: Expatriates sent an average of USD 67.04mn per day through legal banking channels in the first 25 days of January 2025. Source

• BB Introduces IFRS-9 Model to Tackle NPLs: Bangladesh Bank has adopted the Expected Credit Loss (ECL) provisioning model to ensure better monitoring of non-performing loans (NPLs), fully implementing the system by December 2027. Source

• Bangladesh Bank Limits Premium on Forward Forex Transactions: To stabilize the foreign exchange market, BB has imposed a cap on forward sales of foreign currencies, linking it to international policy rates. Source

Energy & Infrastructure

• Bangladesh Signs LNG Deal with US Firm: The country has signed an agreement with Argent LNG to import up to 5mn tons annually for 20 years. Source

• Bangladesh to Issue USD 250mn Sukuk for Rural Infrastructure: The funds will support bridge construction to improve connectivity and agricultural output. Source

• Fuel Prices Could Drop by BDT 10-15 per Litre: The Center for Policy Dialogue (CPD) argues that market-based pricing could lower diesel and kerosene prices. Source

Trade & Commerce

• Saudi & UAE Firms Eye Major Infrastructure Investments in Bangladesh: Masdar plans a USD 500mn solar power project, while ADPG is in talks for port development. Source

• Bangladesh Leads South Asia in Mobile Money Adoption: The country holds 56.12% of South Asia’s mobile money accounts and 12.82% of global accounts, driving financial inclusion. Source

• Bangladesh May Lift Ban on Aromatic Rice Exports: The government is considering resuming exports to reduce smuggling and increase foreign earnings. Source

• Fragrant Rice Production Nearly Doubles in Seven Years: Output rose from 0.579mn tons in FY18 to 1.023mn tons in FY24, driven by export opportunities. Source

• Global Port Operators Show Interest in Chittagong: DP World and AP Moller-Maersk are exploring investments in container terminals and logistics to expand Bangladesh’s export capacity. Source

International

• Trump Threatens 10% Tariffs on Chinese Goods: The move could further weaken the Yuan and disrupt global supply chains. Source

• Vietnam Attracts USD 31.4bn in FDI, Strengthening Its Position as a Tech Hub: Semiconductors and green tech investments drive economic growth. Source

• Sri Lanka’s Tea Exports Hit USD 1.43bn: The 9% revenue increase was led by strong demand from Iraq, Russia, and the UAE. Source