Bangladesh's economy faced stalled institutional reforms, weak private sector lending, and rising fiscal pressure in the last seven days. Key issues include a deadlock over central bank autonomy, record-low credit growth, and Chattogram port disruptions. While steady January exports offered some relief, concerns regarding corporate greenwashing persist.
The following is a recap of those major stories as covered by Star Business.
BB autonomy deadlocked as interim govt nears end (Feb 1)
Bangladesh Bank’s long-awaited autonomy reforms remain stalled, with mere days remaining before the interim government’s tenure expires.
Draft amendments to the Bangladesh Bank Order 1972 and the Bank Company Act, aimed at strengthening oversight, have sat with the finance ministry for months. Central bank officials warn the deferral could weaken financial stability ahead of the Feb 12 election.
GREENWASHED (Feb 2)
Corporates’ environmental claims have come under scrutiny as major firms prioritise marketing over genuine sustainability action.
Industry observers note increasing “greenwashing” as companies tout eco-labels while continuing practices that damage the environment, raising questions about accountability and enforcement of environmental standards in business reporting.
Private sector credit growth hits record low (Feb 2)
Credit to the private sector fell to one of its lowest growth rates in decades, reflecting weak loan demand amid political uncertainties and higher lending costs.
Central bank data shows that year-on-year credit expansion has slowed sharply, underscoring liquidity stress and constrained business investment.
Exports hold steady in January (Feb 3)
Merchandise exports totalled about $4.41 billion in January, barely below the level it was a year earlier but up on a month-to-month basis.
Cautious foreign orders ahead of the general election dampened growth, though the apparel sector remained the mainstay despite a marginal year-on-year decline.
Govt’s net bank borrowing jumps nearly fivefold (Feb 5)
Government net borrowing from the banking system soared nearly fivefold in the first seven months of FY2025-26 to roughly Tk 48,819 crore. As spending outpaces sluggish revenue, the figure represents nearly half of the full-year target, crowding out private credit.
NBR split caught in bureaucratic wrangle (Feb 6)
Implementation of the National Board of Revenue’s structural split into policy and management divisions has stalled at the Ministry of Public Administration. Officials continue to debate staffing approvals, leaving the reform incomplete as election deadlines loom.
Trade bodies demand urgent fix to Ctg port deadlock (Feb 6)
Ten major trade bodies urged immediate action to resolve a week-long deadlock at Chattogram port. The shutdown, triggered by worker opposition to a terminal lease deal, has stranded thousands of containers and threatened export deadlines.
