[🇧🇩] Monitoring Bangladesh's Economy

[Saif]

Unlocking new horizons for BD’s economic future

The Bangladesh Investment Summit 2025, held from April 7 to 10 in Dhaka, marks a defining moment in the nation's economic trajectory. As the renowned business magnate Richard Branson once said, "Business opportunities are like buses, there's always another one coming." The summit, organised by the

thefinancialexpress.com.bd

Unlocking new horizons for BD’s economic future
Serajul I Bhuiyan
Published :
Apr 24, 2025 22:14
Updated :
Apr 24, 2025 22:14

The Bangladesh Investment Summit 2025, held from April 7 to 10 in Dhaka, marks a defining moment in the nation's economic trajectory. As the renowned business magnate Richard Branson once said, "Business opportunities are like buses, there's always another one coming." The summit, organised by the Bangladesh Investment Development Authority (BIDA), demonstrated that Bangladesh is not only ready to board the global economic bus but is driving it forward with vigour and vision. With over 3,500 participants, 130 panellists and experts, and 150 formal meetings, the summit revealed the vast investment potential of Bangladesh, attracting foreign direct investment (FDI) and positioning the country as a rising player in the international economic arena. This article seeks to explore the key outcomes of the summit, analysing its impact on FDI inflows and its potential to drive sustainable economic development, while shedding light on how Bangladesh can capitalize on this momentum to foster long-term growth and opportunities for both local and international investors.

KEY TAKEAWAYS FROM THE BANGLADESH INVESTMENT SUMMIT 2025: Chaudhury Ashik Mahmud Bin Harun, Executive Chairman of BIDA, emphasised the pivotal role that events like the Bangladesh Investment Summit play in shaping the country's investment climate. He highlighted the importance of making such summits regular occurrences, ideally held annually, to keep pace with global developments and continue reinforcing Bangladesh's image within the international business community. While Harun acknowledged that the true impact of the summit would unfold over time, he expressed enthusiasm for the energy and optimism generated by the participants, assuring that similar conferences would continue to be organised to build upon the momentum created.

One of the summit's most notable successes was the formal announcement of two substantial investments-one from Honda Industry and the other from ShopUp-totalling a remarkable Tk 310 billion. In addition, the signing of six memorandums of understanding (MoUs) solidified the potential for future collaborations, signalling a bright future for business partnerships between Bangladesh and foreign investors.

A VISIONARY CENTRE OF SUSTAINABLE FDI AND WORLD GROWTH: Under the visionary leadership of Dr Muhammad Yunus, Bangladesh is a highly promising FDI country with an inclusive culture of sustainable economic growth, social change, and international integration. Yunus's social business and anti-poverty vision is in accord with the global community's increasing interest in morality-enabling investment and sustainable development. His leadership provides investors with unique parameters of stability and transparency that are needed to maintain investor confidence.

Under Yunus's leadership, the country has become favourable to far-reaching reforms to enhance the ease of doing business, enhance the infrastructure, and ensure intellectual property rights-controlling factors that are alluring to foreign investors in search of stable, transparent, and forward-looking environments.

Second, Yunus's focus on growth that is inclusive has resulted in policy measures inducing growth in supportive industries like information technology, renewable energy, and social enterprises and opening up new sources of finance for Bangladesh from overseas firms operating in new industries in Bangladesh.

With the emerging middle class, improved workforce, and expanding marketplace, Bangladesh's future looks bright in being a destination for FDI. The visionary policies of the government to minimie bureaucracy facilitate regulatory approaches to make it easier and cultivate innovation, which enhances the appeal even more.

Lastly, Yunus's worldwide prestige and focus on world cooperation contribute to Bangladesh's world reputation, and investors looking for morality-driven leadership for the general welfare and ecological business practices find it attractive.

Bangladesh during Yunus's time therefore is not only a cheap-labour region but also an expanding source of high-impact, progressive investments conforming to the world's focus on sustainability and social responsibility.

A FOREIGN INVESTMENT ATTRACTION STRATEGIC STRATEGY: BIDA's success in attracting FDI depends on its overall strategy that is beyond economic data. Nahian Rahman, Chief Business Development of BIDA, outlined that more than 3,500 people attended meetings, and several official meetings were conducted to onboard partners. But it is pre-summit groundwork, coupled with strategic moves to introduce international investors to the industrial environment of Bangladesh, that sets the tone.

As Harun was eager to emphasise, gross investment cannot be the only gauge of the success of the summit. True success of the summit is in changing the perception of Bangladesh abroad. Traditionally, foreign investors tend to have out-of-date or unbalanced views of the emerging markets, and this can *&*&*&*&*&*& the potential of the investments. To counter this, BIDA moved pre-emptively on the nation by demonstrating firsthand experience of the development and infrastructure of the country.

In the initial two days of being at the top, the foreign investors were given grand tours of the key industrial facilities, which gave them a practical insight into the country's capability and potential. Foreign investors' exposure to Bangladesh's developing infrastructure, such as visits to the production units and points of investment, were key in demystifying and winning the investors' confidence. These tours gave the investors a neutral experience of the country's dedication to reform, improvement, and ease of investment.

Additionally, on April 9, the government outlined its vision for the nation's future incorporating sustainable development, improved industrial growth, and a strong regulatory mechanism to assure investor confidence. By openly stating so, it made it simple for investors to identify with Bangladesh's direction, infusing confidence within the nation's future economy.

THE NEED FOR REFORM AND PIPELINE BUILDING: One of the key aspects of the success of the Bangladesh Investment Summit 2025 was that it had an equal focus on both the short-term opportunities and the long-term strategic transformations that the country had to achieve for sustainable growth. Harun, Executive Chairman of BIDA, emphasized ongoing reform to make Bangladesh competitive in the rapidly integrated world marketplace. As he said, "Reform is not an episodic process but a process that makes countries relevant and dynamic in the light of shifting economic paradigms." This reflects the necessity of adaptive changes which can address present needs as well as future problems.

Although getting foreign direct investment (FDI) is essential, it is equally crucial to build and maintain a steady stream of prospective investments. This pipeline approach entails the raising of up-front capital flows and the establishment of investor confidence and commitment in the long term. Having a steady stream of opportunities established that investors can look forward to-through established networks, follow-on interactions, and continuous collaboration-allows for the establishment of a growth-supportive, sustainable environment. In this regard, BIDA has agreed to stay in contact with the summit attendees, sending follow-up communications expressing appreciation for their subscriptions and keeping the dialogue going after the event has concluded.

Strategic pipeline growth is a critical component of overall investment attractiveness for Bangladesh. It's fostering of regular contacts and provision of investors with regular updates on potential opportunities means that the momentum generated by the summit does not evaporate. Such regular nurturing of contacts ensures Bangladesh remains one of the first preference places to be thought of for investment, not only today but at any future time in the future. Furthermore, the emphasis given to post-summit activity ensures Bangladesh's position as a good, stable bet to be concentrated on by foreign investment remains unbroken.

A pipeline of investment cannot flourish unless reforms necessary are implemented. Structural reform to the regulatory framework, openness, and ease of business are all needed to make these possibilities realities. As the reforms begin to yield dividends, investors will find Bangladesh more and more the destination for one-time investments and partner with whom to share long-term, sustainable growth. It is the vision of the long term that distinguishes Bangladesh, keeping the country's position in the world marketplace firm, sustainable, and competitive.

COST-EFFICIENT AND STRATEGIC BUDGET MANAGEMENT: In spite of the scale of the event, the summit was held under the umbrella of a budget that was a hallmark of creative fiscal discipline. The total event expenses amounted to Tk 50 million, a much more modest figure compared to the initial budgetary estimate. This cost-effectiveness is testimony to the improvement of Bangladesh's investment-promotion infrastructure to conduct effective events at no wasteful expense to the country's purse. The state's spending of around Tk 15 million and the financial input of Tk 35 million from the summit partners demonstrate cooperative efforts to promote the country's investment agenda.

FROM HERE TO 2035: The summit also provided an opportunity to discuss Bangladesh's vision for the future. With an eye on 2035, the nation envisioned the direction of growth, focusing on the shift towards more diversified industries, advancements in technology, and an improved business climate. The summit presented Bangladesh as a nation poised to undergo revolutionary change, presenting the world an opportunity to be part of the country's ascendancy to South Asia's economic powerhouse.

The message at the top was clear: Bangladesh welcomes foreign investors and sincerely strives to provide an open, efficient, and profitable platform to welcome investors. BIDA's forward-thinking strategy of projecting the country's potential has set the ground well to facilitate future growth and partnerships.

FUTURE-PROOFING BANGLADESH: In an age of fast-paced technological progress and a growing Artificial Intelligence (AI) dominance, Bangladesh universities must keep up, modifying curricula so the Gen-Z generation is prepared to deal with the future world of employees. While the world is going ahead to automate data-driven strategic decision-making, and embracing industries that welcome AI, it is the responsibility of universities within the country to ensure that the students graduating in the present times have the talent and brains to excel under such shifting paradigms. Including AI in the curricula and syllabi of universities is not lagging behind the world but a necessity to keep Bangladesh in sync with the cutting edge of the global economy. Muhammad Yunus states, "Education is the most powerful weapon which you can use to change the world." To tap into this power, schools and universities need to transform to meet the changing workforce and driving sectors of economic growth, specifically those in which AI has the greatest chance of disrupting the form of business models.

By incorporating AI literacy, coding, and data science in their curriculum, higher education institutions can prepare the next generation to be innovators and problem-solvers who can meaningfully contribute to industries like tech, finance, health, and manufacturing. Moreover, as AI-powered firms are the pace-setting force of the global economy, professionals well-versed in AI-centric industries will be more and more in demand. Thus, aligning the Bangladesh higher education system to these streams is crucial in order to attract FDI to the country. Foreign investors are seeking more from nations with an empowered, technology-enabled workforce that is equipped to support and drive AI-based industries. When Bangladesh's universities are opened to the integration of AI, not only the students but also the investors around the world will be informed that the nation is set on developing innovation and offering qualified manpower towards enhancing growth. Such integration of education and industry demands will be the prime driver for FDI, economic growth, and Bangladesh as the leading AI innovation hub of South Asia

CONCLUSION: All in all, Bangladesh Investment Summit 2025 is a roadmap to how skilfully arranged, strategic-investment focus-driven such an event may reinvent an entire nation's investment culture. In an inherent merger of exposures on grass-root level, forthright communication, and planning at a vision-implying juncture, BIDA got the attention of overseas investors as well as endeavoured to increase the position of Bangladesh as an even more wanted Foreign Direct Investment (FDI) hub. As Chaudhury Ashik Mahmud Bin Harun so well put it, "The success of the summit is not only in the immediate tie-ups but what has been created is something that can last, some relationship, some perception that has been created." These long-term relations, the effort to ease the apprehensions of the investors, and the proof of the country improving day by day will be crucial in keeping Bangladesh at the top of the investment destinations of the world. As the great investor Warren Buffet once proclaimed, "Foreign direct investment is the lifeblood of any economy's growth, fuelling innovation and unleashing new potential." This summit has indeed opened doors to such growth and innovation in Bangladesh.

Dr. Serajul I Bhuiyan is a professor and former chair of the Department of Journalism and Mass Communications at Savannah State University, Savannah, Georgia, USA.​

 

[Saif]

Bangladesh wants to be top manufacturing country: Yunus

Chief adviser Muhammad Yunus has said that his government’s aim was to transform Bangladesh into a manufacturing and economic hub as he held a closed-door meeting with several prominent foreign investors...

www.newagebd.net

Bangladesh wants to be top manufacturing country: Yunus
Bangladesh Sangbad Sangstha . Doha 24 April, 2025, 13:35

Chief adviser Professor Muhammad Yunus held a closed-door meeting with several prominent foreign investors in the Qatari capital, aiming to attract investment in some of the country’s key sectors. | UNB photo

Chief adviser Muhammad Yunus has said that his government’s aim was to transform Bangladesh into a manufacturing and economic hub as he held a closed-door meeting with several prominent foreign investors.

‘We want to be a top manufacturing country in the world,’ he said at the meeting on Wednesday as he welcomed all sorts of foreign investment in Bangladesh.

The meeting was arranged aiming to attract investment in some of the country’s key sectors as several notable figures including a former deputy prime minister of the Maldives, a member of the Malaysian royal family, a former Malaysian minister, a Qatari royal family member, top bankers, and several wealthy non-resident Bangladeshis were present, CA’s deputy press secretary Abul Kalam Azad Majumder told BSS on Thursday.

Addressing the investors, the chief adviser said his government is offering one of the most attractive investment climates in the region.

The investors expressed interest in exploring opportunities in sectors such as manufacturing, waste management, energy, banking, and tourism-particularly in the resort district of Cox’s Bazar.

Professor Yunus encouraged the investors to visit Bangladesh and engage in discussions with the relevant agencies.

Foreign adviser Md Touhid Hossain and senior secretary Lamiya Morshed were also present at the meeting.

Earlier, chief adviser Muhammad Yunus urged Qatari investors to invest in Bangladesh to take advantage of the immense potentials that the country offers.

‘Bangladesh is now back to business and back to business in a big way. We want your partnership,’ the chief adviser said at a programme in Doha on Wednesday evening.

Addressing the event titled ‘Bilateral Investment Opportunities Between Qatar and Bangladesh’, the chief adviser said the Interim Government had taken many steps to improve investment climate in the country and was dedicated to creating New Bangladesh free from corruption.

He shared the inspiring story of how Bangladesh once convinced Norwegian telecom operator Telenor to set up a telephone company in the country that in turn became its biggest profit-making venture.

Azad Ashraf, president of Bangladesh Forum, Qatar, delivered the welcome speech.

BIDA executive chairman Ashik Chowdhury gave a presentation before potential Qatari investors and non-resident Bangladeshis about investment opportunities in Bangladesh and the reforms undertaken by the country’s Interim Government to make business and investment easier.

‘If you ever consider Bangladesh the investment destination, this is probably the best time to do it,’ he said.

Addressing the event, energy adviser Fouzul Kabir Khan said when the Interim Government assumed office, Bangladesh had an outstanding debt of $3.2 billion, which has now come down to $600 million.

They include 254 million outstanding payments to Qatar Energy, which have come down to nil by Wednesday, he said.

He explained the Interim Government’s plan for energy safety and improved infrastructure for their benefit.

Qatar’s deputy undersecretary for industry and business development Saleh Majed Al Khalafi, co-founder of Next Smart Solutions Ali Ben Fardj, among others, spoke in the programme.

Foreign adviser Md Touhid Hossain was, among others, present while Bangladesh ambassador to Qatar Nazrul Islam delivered the closing remarks.​

 

[Saif]

Bangladesh showing export potential amid economic headwinds

Bangladesh is showing its industrial capabilities and export resilience even amid economic uncertainty and political transition, according to speakers.

www.thedailystar.net

Bangladesh showing export potential amid economic headwinds
Says commerce adviser at the inauguration of Meet Bangladesh Expo

A man visits a stall showcasing Bangladesh-made drones at the Meet Bangladesh Exposition at the International Convention City Bashundhara in Dhaka yesterday. More than 120 local exhibitors and over 25 foreign buyers are taking part in the two-day event. Photo: Amran Hossain

Bangladesh is showing its industrial capabilities and export resilience even amid economic uncertainty and political transition, according to speakers.

They praised local entrepreneurs for that, saying the business community is transforming the economy through perseverance and innovation.

"You have built exceptional products that reflect the true potential of our nation," said Commerce Adviser Sk Bashir Uddin while inaugurating the two-day "Meet Bangladesh Exposition" at International Convention City Bashundhara.

Organised by the commerce ministry's Export Competitiveness for Jobs (EC4J) Project, the event features over 120 local exhibitors and more than 25 foreign buyers from countries including Singapore, Libya, Colombia, Algeria, the UAE, India, Malaysia, Bhutan, and the Maldives.

At the programme, the adviser, referring to the local business community, said, "Your success showcases extraordinary dedication in the face of global competition."

Uddin pointed to ongoing policy reforms for improving the ease of doing business, including the introduction of a national single window -- an integrated digital platform to simplify trade, enhance transparency, and reduce transaction costs.

"Our priority is job protection and creation," he said. "To sustain growth, we must continue to evolve."

Despite recent economic pressures, the adviser said that Bangladesh has maintained a steady export performance and is expected to benefit from falling operational costs in the near future.

Positioning the exposition as a curtain-raiser for the upcoming International Investment Summit, Uddin invited global investors to explore the country's industrial sectors.

"Our ministry is not just a regulator. It is your facilitator, analyst, and partner," he said.

"We are with you, for you, and beside you. I remain at your service to support your pursuit of excellence," added the adviser.

Sheikh Mohammad Abdur Rahman, joint secretary at the commerce ministry and deputy director of the EC4J project, said the expo highlights Bangladesh's industrial development, innovation, and growing focus on sustainability and environmental standards.

Welcoming international buyers and delegates, he said that many foreign buyers had already visited local factories and responded positively.

"Your enthusiasm was encouraging, and today's inauguration will further deepen your understanding of our capabilities," he said.

Rahman hoped that Bangladesh would attract greater interest from international markets, citing the country's reputation for quality and efficiency.

He also thanked development partners for their continued support.

Rahman added that the exposition, completed in just five months despite being planned for a year, was a source of national pride.

"This is more than a business event, it is a moment of national pride," he said.

Suhail Kassim, senior operations officer and acting country director of the World Bank, reaffirmed the bank's commitment to supporting Bangladesh in expanding industrial competitiveness beyond the readymade garment sector.

He cited initiatives like the Private Investment and Digital Entrepreneurship (PRIDE) project, which promotes economic zones and technology parks, as well as the launch of a country-specific private sector diagnostic to guide strategic reforms and export diversification.

"The World Bank remains committed to supporting SMEs, strengthening value chains, and driving long-term growth. We are proud to be part of Bangladesh's journey," he said.

Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, called for increased foreign investment in the SME sector, which contributes roughly 30 percent of GDP.

Ahmed emphasised the growth potential of the plastic industry, noting it could expand by 20 percent annually with proper investment and policy backing.

The exposition will remain open from 10am to 7pm daily. More than 1,000 local buyers are also attending to it, creating a platform for manufacturers to connect with global investors and industry stakeholders.

The expo includes guided factory visits, breakout sessions, and workshops led by business leaders and sector experts to encourage dialogue and foster partnerships across emerging export sectors such as medical and personal protective equipment, leather goods, footwear, plastics, and light engineering.​

 

[Saif]

Trade diversion may benefit LDCs

Global trade is going through a turbulent year due to United States (US) President Donald Trump's tariff coupled with policy uncertainty. Least Developed Countries (LDC), especially export-oriented ones like Bangladesh, will face severe repercussions due to their concentration of trade on a small n

thefinancialexpress.com.bd

Trade diversion may benefit LDCs
Asjadul Kibria
Published :
Apr 26, 2025 22:54
Updated :
Apr 26, 2025 22:54

Global trade is going through a turbulent year due to United States (US) President Donald Trump's tariff coupled with policy uncertainty. Least Developed Countries (LDC), especially export-oriented ones like Bangladesh, will face severe repercussions due to their concentration of trade on a small number of products as well as their limited resources to deal with setbacks.

These are the general observations made by the latest Global Trade Outlook and Statistics report, released in the third week of this month by the World Trade Organization (WTO) Secretariat. It said that the volume of world merchandise trade is expected to decline by 0.2 per cent in 2025 under current conditions, meaning suspension of Trump's reciprocal tariffs for three months. The situation will aggravate if the US president ultimately withdraws the suspension and applies his reciprocal tariffs. There will also be a broader spillover of trade policy uncertainty (TPU). Both these could lead to a sharper decline of global goods trade by 1.50 per cent in global goods trade and hurt export-oriented LDCs, added the WTO report.

To project the impact of reciprocal tariffs and TPU on trade and gross domestic product (GDP) globally and regionally, WTO conducted a modelling analysis of TPU, providing four cumulative trade policy scenarios. It showed that global trade might decline by 0.5 per cent to 4.3 per cent under four scenarios: only US TPU, actual tariffs, reciprocal tariffs, and TPU spreads. Under the third and fourth scenarios, LDCs' global trade may drop by 0.40 per cent and 0.90 per cent, respectively, while LDCs' combined gross domestic product (GDP) is likely to drop by 0.07 per cent and 0.74 per cent, respectively.

Interestingly, LDCs are projected to see their exports rise in the second scenario when LDCs' global trade may increase by 0.90 per cent. "The reason is that some LDCs - for example, Cambodia, Bangladesh and Lesotho - can expand their exports to the United States because their exports are highly dependent on products for which China currently has a large import share in total US imports, such as clothing and textiles, as well as electronic equipment," said the WTO report. That's why these LDCs may benefit from shifting demand towards their products. The WTO report categorically noted that the recent rise in tariffs and uncertainty is projected to positively impact merchandise trade flows of LDCs in the current year as export volume may grow by 4.80 per cent, and import growth should be 7.60 per cent.

Undoubtedly, it is a glimmer of hope for the LDCs. These countries are generally among the most vulnerable to external economic shocks. It is to be noted that the value of the global merchandise exports of the LDCs surged by 5.60 per cent to US$275 billion in the last year from $ 260 billion in 2023 when LDCs global exports had declined by 2.0 per cent from $266 billion in 2022. The surge slightly increased the share of LDCs in world exports at 1.12 per cent, an all-time high, in the last year, which was 1.09 per cent in 2023. Merchandise imports of LDCs also jumped by 3.20 per cent to $349 billion from $338 billion in 2023. Earlier in 2022, LDCs global import stood at $361billion in 2022. The share of LDCs in world imports also increased slightly to 1.41 per cent in 2024 from 1.39 per cent in 2023 but matched the previous peak of 1.41 per cent in 2022.

At present, 37 of the 166 members of the WTO are LDCs. The total number of LDCs is 45, as per the United Nations (UN) list, of which 15 are at various stages of graduation. Of these, three LDCs, Bangladesh, Lao PDR, and Nepal, will be graduated by the end of 2026.

As the Trump tariff is mainly designed to hit China, there will be a decline in Chinese exports to the US market. The WTO report projected that most regions will see a fall in exports to the US, with the most significant reduction for China (77 per cent). However, the report also highlights a promising trend-Asia (excluding China) and in particular LDCs are projected to take over some of the lost market share of China facing higher tariffs. This presents an opportunity for LDCs to expand their global market presence.

In other words, trade diversion will benefit the LDCs, and their combined exports to the US may increase by 22 per cent in the current year. As a result, LDCs' export share to the US market will stand at 3.2 percentage points, while China's share will drop by 10.50 per cent. US is the third largest market for LDCs combined exports while China and European Union (EU) are the first and second largest destinations respectively.

At present Bangladesh is the leading exporter of LDCs as country shares more than one-fifth of the LDC's total exports. Again, the US is the leading market for Bangladeshi goods, and the country's exports to the US stood at $8.36 billion in 2024. Last year, the country also faced an average of 15.70 per cent import tariffs in the US market. Trump imposed a 37.50 per cent reciprocal tariff on imports from Bangladesh in the first week of this month, along with various tariff rates on some other countries. Although he later suspended it for three months, it is uncertain about what he will do ultimately.

As predicted by the WTO, the potential trade diversion from China presents an opportunity for Bangladesh, although it is difficult to estimate. Theoretically, trade diversion occurs when 'tariff causes imports to shift from low-cost countries to higher-cost countries.' In other words, trade diversion is undesirable due to its 'concentration on production in countries with a higher opportunity cost and lower comparative advantage.' However, Trump's tariff may fuel trade diversion from China for the time being. It is crucial for Bangladesh to seize this opportunity and strategically enhance its exports to the US market.​

 

[Saif]

Bangladesh races to expand air cargo capacity

In a first move to address the shortfall, Sylhet's Osmani International Airport is set to launch dedicated cargo operations today

www.thedailystar.net

Bangladesh races to expand air cargo capacity
Sylhet airport set to launch dedicated cargo operations today; Chattogram to follow suit

Bangladesh is racing to expand its air cargo capacity after India's abrupt suspension of third-country transshipment earlier this month upended a logistics route for garment exporters.

The Indian decision, announced without warning on April 8, cut off a vital land-air corridor that allowed Bangladeshi goods to move overland to Kolkata and Delhi airports and onward to global markets. The disruption has forced Dhaka to fast-track efforts to diversify export channels and reduce dependence on India.

In a first move to address the shortfall, Sylhet's Osmani International Airport is set to launch dedicated cargo operations today and become the country's second airport to handle freighter flights after Dhaka's Hazrat Shahjalal International Airport (HSIA).

A chartered Airbus A330-800 freighter of Galistair Aviation is scheduled to depart Sylhet at around 7:05pm, carrying up to 60 tonnes of garments to Spain, said Shakil Meraj, director (in-charge) of the Cargo Department of Biman Bangladesh Airlines. The shipment is bound for Inditex, the Spanish clothing company that owns several major fashion brands, including Zara. Biman will provide cargo and ground-handling services for the inaugural flight.

Civil Aviation and Commerce Adviser Sk Bashir Uddin is expected to attend the inaugural ceremony as chief guest, alongside Bangladesh's Ambassador to Mexico M Mushfiqul Fazal Ansarey and Civil Aviation and Tourism Secretary Nasreen Jahan, who will be present as special guests.

"This is a significant milestone as Sylhet becomes operational for cargo flights," said Civil Aviation Authority of Bangladesh (CAAB) Chairman Air Vice Marshal Md Monjur Kabir Bhuiyan. He added that explosive detection systems, X-ray scanners, and additional security arrangements had been installed to meet international freight handling standards.

The initiative to open Sylhet is part of a broader strategy to decentralise and expand Bangladesh's cargo-handling capacity. Officials are also moving to activate Shah Amanat International Airport in Chattogram for dedicated cargo operations, which have remained dormant since 2022.

An emergency meeting was held at Chattogram airport on April 21 to address operational bottlenecks. Group Captain Sheikh Abdullah Alamgir, director of the airport, said preparations were underway to restart cargo services and that initial capacity would allow at least two large freighter flights per week. "India's decision is a wake-up call. We now have an opportunity to become more self-reliant," Alamgir said.

Mohammad Ibrahim Khalil, public relations officer at the airport, said Chattogram's cargo station, capable of handling 250 tonnes for imports and 20 tonnes for exports, had remained largely unused since the suspension of import cargo flights two years ago.

Industry stakeholders have welcomed the move, but stressed that long-term success would depend on comprehensive infrastructure improvements and cost competitiveness.

"This service should not operate on an ad hoc basis. Full facilities, including screening equipment and scanning machinery for export shipments, must be installed so that exporters feel encouraged to use the airport regularly," said Kabir Ahmed, president of the Bangladesh Freight Forwarders Association (BAFFA). He noted that Sylhet's cargo infrastructure had remained largely underutilised until now.

Ahmed said the success of the initiative would also hinge on cost. If regular flights from Sylhet to Europe could maintain rates between $2.6 and $2.7 per kilogram, air shipment would be attractive for exporters, he said. For chartered flights, a rate of around $3.5 per kilogram would still be competitive, he added.

Ahmed cautioned that the government should open cargo services at Sylhet and Chattogram airports to all exporters, rather than prioritising shipments for specific companies.

COST DIFFERENTIALS

The urgency reflects the scale of the disruption. Freight forwarding industry estimates indicate that about 600 tonnes, or roughly 18 percent of Bangladesh's weekly garment air exports during lean seasons, were routed through Indian airports before the ban. The Indian route, which gained prominence during the Covid-19 pandemic, offered faster lead times and lower costs compared to shipping directly out of Dhaka.

Cost differentials were substantial. Even after factoring in overland transport costs, shipping garments to Europe via India had cost about $2.6 per kilogram, compared to $2.9–$3.2 per kilogram through Dhaka airport during off-peak periods and up to $4.5 during peak season, according to freight forwarders. Major buyers such as Inditex, which maintains a distribution hub in Delhi, had increasingly shifted shipments to India to meet tight delivery schedules.

By contrast, HSIA has long struggled with capacity and operational inefficiencies. Its cargo village, designed to handle 300 tonnes a day, regularly processes more than 800 tonnes in off-peak periods and up to 1,200 tonnes during peak seasons. Reports of cargo being left exposed to the elements, coupled with high ground-handling fees -- 29 cents per kilogram in Dhaka compared to just five cents at Delhi airport -- have compounded frustrations among exporters.

Between January 2024 and March 2025, Bangladesh's garment exporters shipped more than 34,900 tonnes of apparel worth $462.34 million through Indian airports to 36 countries, according to data from the Bangladesh Garment Manufacturers and Exporters Association.

Bangladesh's air cargo exports through India over the 15-month period included a range of products such as blouses, trousers, T-shirts, and baby garments. Key markets included the US, Germany, France, Japan, and South Korea, along with non-EU destinations such as the United Arab Emirates, Australia, Canada, South Africa, and Chile.

Now, CAAB and Biman are jointly reviewing civil aviation tariffs and ground-handling charges to improve competitiveness. "We expect to announce reduced handling charges very soon," Bhuiyan said, noting that the government plans to form a task force led by the Ministry of Civil Aviation and Tourism to coordinate reforms.

Longer-term hopes are pinned on the much-delayed third terminal at HSIA, which is expected to open early next year. Once operational, the terminal is projected to raise Dhaka's export cargo capacity from 200,000 tonnes to 546,000 tonnes annually, supported by a new 36,000-square-metre cargo zone.

Commerce Secretary Mahbubur Rahman said the government moved to expand shipment facilities at Sylhet and Chattogram airports to serve a wider range of exporters.

Rahman acknowledged that without substantial reductions in ground-handling charges at HSIA, it would be difficult to achieve competitive rates at other airports. "The government will substantially cut ground-handling charges and lower aircraft refuelling costs to reduce operational expenses. Overall logistics costs for air cargo shipment will fall significantly," he said.

The expansion is seen as critical for Bangladesh's $40 billion garment export sector, which accounts for around 85 percent of total exports and depends heavily on efficient logistics to meet delivery deadlines in Europe, the US and beyond.​

 

[Saif]

Bangladesh gets $2.27 billion in remittance in 26 days

Bangladesh received a record $2.27 billion in remittance in the first 26 days of April, according to an updated report published by Bangladesh Bank. As per the report, the country is receiving $87.3 million in remittance every day on an average. Out of the total, $853.8 million entered the countr

thefinancialexpress.com.bd

Bangladesh gets $2.27 billion in remittance in 26 days
FE ONLINE DESK
Published :
Apr 27, 2025 19:45
Updated :
Apr 27, 2025 19:47

Bangladesh received a record $2.27 billion in remittance in the first 26 days of April, according to an updated report published by Bangladesh Bank.

As per the report, the country is receiving $87.3 million in remittance every day on an average.

Out of the total, $853.8 million entered the country through state-owned banks, $119.4 million through a specialised bank, $1.29 billion through private banks, and $4.3 million through foreign banks.

In March, Bangladesh received a record $3.29 billion in remittances.​

 

[Saif]

Govt's move to replace transshipment through India opens 'new horizon' in cargo services for exporters

Commerce Adviser Sheikh Bashir Uddin said that the government is working to offer cargo services to exporters at significantly lower rates than those availed in India, till Delhi cut off the transshipment facility through its land ports for Bangladeshi exports to third countriesHe made the remarks

thefinancialexpress.com.bd

Govt's move to replace transshipment through India opens 'new horizon' in cargo services for exporters
UNB
Published :
Apr 27, 2025 23:28
Updated :
Apr 27, 2025 23:28

Commerce Adviser Sheikh Bashir Uddin said that the government is working to offer cargo services to exporters at significantly lower rates than those availed in India, till Delhi cut off the transshipment facility through its land ports for Bangladeshi exports to third countries.

He made the remarks during the inauguration of direct cargo flights through Sylhet Osmani International Airport on Sunday.

Bangladesh had enjoyed the facility for five years (2020-25), during which it emerged that some exporters actually found it cheaper to transfer their products to some countries by sending the the goods over land to India, from where they could avail cheaper cargo services, than by sending them direct from Bangladesh.

The model 337 cargo flight took off from Sylhet to Spain at around 8:15 pm carrying 66 tons of garment products.

The adviser mentioned that this marks the first cargo service outside Dhaka since the country's independence, calling it a historic milestone for the people of Sylhet.

He further said that the launch of cargo flights from Osmani International Airport is undoubtedly a groundbreaking initiative. "The fascist government had destroyed our own thinking and made us dependent."

Sheikh Bashir Uddin also mentioned that the closure of India's transshipment facility has prompted the government to resolve the issue internally, and this has been accomplished in a short time thanks to collective cooperation.

With the opening of the new cargo complex at Sylhet Osmani International Airport, the region now has a new route for exporting goods quickly.

The Chairman of the Civil Aviation Authority, Air Vice Marshal Muhammad Manjur Kabir Bhuiyan, who presided over the event, called the development a "new horizon" for the country's export sector, signaling a breakthrough.

He said that two cargo flights will initially depart from Sylhet per week, with plans to gradually increase the frequency.

Bangladesh's Ambassador to Mexico Mushfiqul Fazal Ansarey, Secretary of the Ministry of Civil Aviation and Tourism Nasrin Jahan, and Hafiz Ahmed, Director of MAG Osmani International Airport, also spoke at the ceremony.​

 

[Saif]

Bangladesh starts freighter flights as India halts trans-shipment

The inaugural freighter flight, full of cargo, took off Sylhet’s Osmani International Airport Sunday evening.

www.newagebd.net

Bangladesh starts freighter flights as India halts trans-shipment
Saddam Hossain in Dhaka with Zaman Monir in Sylhet 27 April, 2025, 21:19

Bangladesh’s first freighter flight takes off from Sylhet. | BSS photo

The inaugural freighter flight, full of cargo, took off Sylhet’s Osmani International Airport Sunday evening.

The cargo flight from the airport began in the backdrop of India’s April 8 suspension of third-country trans-shipment for Bangladesh.

The civil aviation and tourism affairs adviser Sheikh Bashir Uddin inaugurated the flight on Sunday evening at the airport.

He said that the businesses would have the scope to export goods from Bangladesh from now on even at a lower cost.

‘The cost of carrying goods to Europe from Dhaka came down by 13 per cent than the previous cost,’ he added.

A chartered Airbus A330-300 freighter operated by Galistair Aviation departed Sylhet airport Sunday evening, carrying 60 tonnes of readymade garments to Zaragoza of Spain via Dubai. Biman Bangladesh Airlines will provide ground-handling services for the operation.

The RMG items will be delivered to Inditex, which is claimed to be the world’s largest fast-fashion brand based in Spain.

The Bangladesh ambassador to Mexico, Mushfiqul Fazal Ansary, and the Civil Aviation and Tourism ministry secretary, Nasrin Jahan, among others, addressed the programme.

Osmani International Airport director Hafiz Ahmed said that exporting goods from the Sylhet region to Spain would have a positive impact on Bangladesh’s economy.

‘From now on, one cargo flight will go to Spain per week. If the demand of exporting increases, the number of flights will also be increased,’ he said.

He said that it would be possible to export agricultural products produced in the Sylhet region to different European countries including the UK if a packaging house was built in Sylhet.

A modern cargo complex with a capacity of 100 tons has been built at Osmani International Airport at a cost of Tk 26 crore, Hafiz added.

Regarding the cargo shipment from Sylhet, Bangladesh Freight Forwarders Association president Kabir Ahmed said that the service must be consistent.

‘The authority should install all facilities like screening, scanning and all necessary infrastructure to encourage exporters to use the airport regularly,’ he added.

However, the success of this initiative will depend heavily on freight rates. Exporters will find it viable if regular flights to Europe can offer freight charges between $2.6 and $2.7 per kilogram.

‘Even with chartered flights, maintaining a freight charge of around $3.5 per kilogram would still be considered competitive,’ he added.

He also urged the government not to favour any particular companies in cargo operations at Sylhet and Chattogram airports. Instead, the cargo services should remain open and accessible to all exporters to ensure fair competition and maximize export growth.

Mohiuddin Rubel, a former director of the Bangladesh Garment Manufacturers and Exporters Association, said that increasing competitive capacity was a must in modern business.

‘We use air cargo for exports. The use of air cargo will be higher in the future. In this case, increasing capacity is good for the industry,’ he added.

He also urged the government to install air cargo services at other airports.

On April 8, India withdrew the trans-shipment facility that allowed cargo to be exported from Bangladesh to third countries through Indian land customs stations.

India, in a circular dated June 29, 2020, permitted the movement of Bangladeshi export cargo in containers or closed-body trucks via Indian ports and airports.

Hazrat Shahjalal International Airport has long struggled with capacity shortages and operational inefficiencies.

According to the BGMEA, from January 2024 to March 2025, Bangladeshi apparel exporters shipped over 34,900 tonnes of garments worth $462.34 million to 36 countries through Indian airports.​